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HomeMy WebLinkAboutStaff Report 9434 City of Palo Alto (ID # 9434) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/15/2018 City of Palo Alto Page 1 Summary Title: Annual Williamson Act Contract Renewal (2018) Title: Annual Review of Williamson Act Contract Renewals Within the City of Palo Alto From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council take the following actions: 1. Find that the project is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15317; and 2. Review and approve the renewal of Williamson Act contracts listed in Attachment A. Background The California Land Conservation Act of 1965, commonly known as the Williamson Act, is a state program that discourages agricultural lands from being converted to urban uses, preserves open space, and promotes efficient urban growth patterns. Under the California Land Conservation Act Program (Williamson Act), private landowners can voluntarily restrict their land to agricultural and compatible open-space land uses under a minimum 10-year rolling term contracts administered by the jurisdictions. In return, restricted parcels are assessed for property tax purposes at a rate consistent with their actual use or generated income, rather than potential market value. The program provides property tax relief to owners of agricultural land who agree to limit the use of their property to agricultural or other approved compatible uses. On July 24, 1974, the City of Palo Alto adopted Ordinance No. 2663 to establish rules for both establishing and administering Williamson Act contracts for Palo Alto properties. Among other things, the rules regarding administration of established contracts limit the allowable uses of City of Palo Alto Page 2 the property to what is described in the contract, and provide that the contract remains in place when a property is sold, ensuring that the new owners are subject to the same use restrictions. The contracts are for a rolling 10-year term with a renewal date of January 1 each year, at which time one year is added to the contract term so that the term remains 10 years unless either party provides notice of non-renewal. Every year, at least 80 days prior to the January 1 renewal date, the City Council reviews the contracts and, at that time, may initiate a notice of non-renewal for any contract or approve a notice of non-renewal submitted by a landowner. If the Council takes such action, then that contract does not renew on January 1 and terminates ten years later. Under certain conditions, the Council may also approve a landowner’s request to cancel a contract. Contracts, for which the Council has not approved a notice of non-renewal or a cancellation, automatically renew for another 10-year term each January 1. Discussion The Williamson Act Property Report for Calendar Year 2018 (Attachment A) provides information on the 25 parcels currently under contract with the City. Attachment A lists the parcels’ 2018 assessed land value, acreages, and the land class (prime and non-prime land). A map showing the location of these individual parcels has been prepared for reference and is included as Attachment B. Properties under Contract Renewal There are 23 properties renewing their contract with the City of Palo Alto for another 10 year term starting from January 1, 2019. Of the 23 contracts, the privately operated Palo Alto Hills Golf and Country Club is not eligible for tax benefits. Although this golf course is a permitted use, only golf courses that are open to the public and charge minimal green fees are eligible for tax benefits. A total of 350 acres of land is under Williamson Act contracts in the City of Palo Alto. Approximately 42 percent of this land (147 acres) is defined as prime land with a Class I or Class II Natural Resource Conservation Service (NRCS) rating, which is considered to have the features able to sustain long-term agricultural production. About 70 percent of the land under contract is owned by private individuals. Stanford University Board of Trustee owns another 27 percent while the remaining land is owned by the City of Palo Alto. The 2016 California Land Conservation Act Status Report (Link: 2016 California Land Conservation Act Status Report) published in December 2016 provides detail of the land enrollment under the California Land Conservation Act throughout the state of California. City of Palo Alto Page 3 Properties under Contract Non-Renewal No application for Williamson Act contract non-renewal was filed with the City from October 2017 to August 2018. At present there are two parcels, previously approved for non-renewal by the City Council in 2014 and 2016 that are in the ten year process of termination. The two parcels will reach the end of their remaining terms on December 31, 2024 and 2026 respectively (see Attachment A for parcel details). Four parcels reported in last year’s report (October 2017 report), owned by Mid-Peninsula Regional Open Space District, reached the end of their last ten-year term on December 31, 2017 and were removed from the Williamson Act designation. The California Department of Conservation’s Williamson Act Program requires participating cities and counties to complete and submit applications for an Open Space Subvention Act payment per Government Code section 16144, which states: "On or before October 31 each year, the governing body of each county, city, or city and county shall report to the Secretary of the Resources Agency the number of acres of land under its regulatory jurisdiction which qualify for state payments pursuant to the various categories enumerated in Section 16142, together with supporting documentation as the secretary by regulation may require.” While the State no longer provides meaningful subvention payments to local agencies, this reporting requirement remains in the law. Resource Impacts The property tax assessment for parcels under the Williamson Act is based on a rate consistent with the actual land use or generated income, rather than its potential market value. Because of this method of assessment, the City does not receive market value tax revenue for these properties. Based on data collected from the County Assessor’s Office, the City would have received $11,000 in tax revenue if the parcels were not under Williamson Act contracts. Historically, the City received approximately $1,000 a year in subvention payments from the State to partially offset the foregone revenue. However, during the recession, the State suspended funding for these payments. In 2011, Assembly Bill 1265 allowed participating cities and counties to recapture 10% of the benefits; however, the implementation of this provision is generally only cost effective for cities and counties that have significant acreage under contract. Policy Implications The recommended action implements Ordinance No. 2663 regarding the administration of the Williamson Act for Palo Alto properties. The Williamson Act program complies with the goals of the Natural Environment Element of the City’s Comprehensive Plan. The Natural Environment Element encourages protection, and conservation of Palo Alto’s open space, natural resources City of Palo Alto Page 4 and ecosystems. Program N1.3.1 of Goal N-1 specifically supports preservation of Palo Alto’s Williamson Act agricultural preserves. Environmental Review The proposed project is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15317 (Open Space Contracts or Easements) of the CEQA Guidelines. Attachments: Attachment A: Williamson Act Property Data 2018 (PDF) Attachment B: Williamson Act Parcels Map 2018 (PDF) Page 1 of 3 Number APN Street Name Full Address Owner Name Williamson Act Land Ownership Zoning Acreage after Deducting Homesite Exclusion Homesite Exclusion Land Class Contract Start Date Contract Status Assessed Land Value 20181 Assessed Land Value 20171 Assessed Land Value 20161 1 120-31-0012 El Camino Real 103 El Camino Real Leland Stanford Jr., Univ. Board of Trustees Stanford University Land PF 0.72 No acreage deducted Prime Unknown Unchanged; contract will continue for at least another 10 years. $11,040 $11,040 $10,514 2 120-31-0092 El Camino Real 103 El Camino Real Leland Stanford Jr., Univ. Board of Trustees Stanford University Land PF 10.00 No acreage deducted Prime Unknown Unchanged; contract will continue for at least another 10 years. $153,600 $153,600 $146,285 3 142-16-052 Coyote Hill Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC (D)36.02 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $14,808 $14,808 $14,102 4 142-16-057 Coyote Hill Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)15.33 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $8,165 $8,165 $7,776 5 142-16-064 Deer Creek Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)4.04 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $2,520 $2,520 $2,399 6 142-16-065 Deer Creek Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)16.70 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $8,850 $8,850 $8,428 7 142-16-069 Coyote Hill Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)12.48 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $6,740 $6,740 $6,419 8 182-33-0143 Arastradero Rd 1525 Arastradero Rd City of Palo Alto City of Palo Alto Land PF 11.42 No acreage deducted Prime Unknown Unchanged; contract will continue for at least another 10 years. $0 $0 $0 List of Parcels Under Williamson Act Contract to Renew on January 1, 2019 Page 2 of 3 Number APN Street Name Full Address Owner Name Williamson Act Land Ownership Zoning Acreage after Deducting Homesite Exclusion Homesite Exclusion Land Class Contract Start Date Contract Status Assessed Land Value 20181 Assessed Land Value 20171 Assessed Land Value 20161 9 182-35-008 Alexis Dr Alexis Dr Palo Alto Hills Golf and Country Club, Inc. Private Ownership OS 5.52 No acreage deducted Prime 5/1/1973 Unchanged; contract will continue for at least another 10 years. $53,846 $52,791 $51,756 10 182-35-035 Alexis Dr 3000 Alexis Dr Palo Alto Hills Golf and Country Club, Inc. Private Ownership OS 119.92 No acreage deducted Prime 5/1/1973 Unchanged; contract will continue for at least another 10 years. $1,484,039 $1,454,941 $1,426,413 11 351-05-024 Page Mill Rd 3845 Page Mill Rd Judith A. Block Trustee Private Ownership OS 7.72 One acre deducted for homesite Non Prime 2/16/1976 Unchanged; contract will continue for at least another 10 years. $54,309 $53,254 $52,196 12 351-05-042 Page Mill Rd 3837 Page Mill Rd David P. and Cynthia Lautzenheiser Trustee Private Ownership OS 9.00 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $412,854 $404,770 $396,818 13 351-05-043 Page Mill Rd No Street Number Richard D. Guhse Trustee Private Ownership OS 19.01 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,200 $1,200 $1,142 14 351-05-044 Page Mill Rd 3905 Page Mill Rd Michael R. Lowry Private Ownership OS 5.43 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $189,173 $185,464 $181,828 15 351-05-045 Page Mill Rd 3895 Page Mill Rd Marc and Lesley Wilkinson Private Ownership OS 9.00 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,082,259 $1,061,039 $1,040,235 16 351-05-046 Page Mill Rd 3885 Page Mill Rd William W. and Sharon T. Luciw Trustee Private Ownership OS 7.45 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,081,089 $1,059,900 $1,039,105 17 351-05-047 Page Mill Rd 3875 Page Mill Rd Richard D. Kniss Trustee & Et Al Private Ownership OS 10.00 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $600 $600 $571 Page 3 of 3 Number APN Street Name Full Address Owner Name Williamson Act Land Ownership Zoning Acreage after Deducting Homesite Exclusion Homesite Exclusion Land Class Contract Start Date Contract Status Assessed Land Value 20181 Assessed Land Value 20171 Assessed Land Value 20161 18 351-05-048 Page Mill Rd 3865 Page Mill Rd Grace Carland Trustee Private Ownership OS 9.00 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $37,330 $36,609 $35,876 19 351-05-049 Page Mill Rd 3855 Page Mill Rd Patrick K. Suppes Private Ownership OS 10.00 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $538,824 $528,259 $517,901 20 351-12-062 Skyline Blvd 5061 Skyline Blvd Rogers Noah Private Ownership OS 10.39 No acerage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $662 $662 $630 21 351-12-063 Skyline Blvd 5065 Skyline Blvd Robert Schulte Trustee Et al Private Ownership OS 11.35 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $497,838 $488,077 $478,507 22 351-12-066 Skyline Blvd 2287 Skyline Blvd Robert Schulte Trustee Et al Private Ownership OS -0.76 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $25 $25 $24 23 351-25-015 Page Mill Rd 4201 Page Mill Rd Bruce A Leak Private Ownership OS 10.31 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,655,780 $1,623,362 $1,591,464 24 351-12-006 Skyline Blvd 1405 Skyline Blvd Midpeninsula Regional Open Space District Midpeninsula Regional Open Space District OS 138.59 Non Prime 2/26/1973 Contract Terminates 12/31/24 25 351-05-050 Page Mill Rd 3849 Page Mill Rd Jeffrey A. and Mary L. Thomas Private Ownership OS 10 Non Prime 2/7/1977 Contract Terminates 12/31/26 Source: City of Palo Alto, Williamson Act Parcel Database 2018. Note1 Santa Clara County Assessors Office, Website: https://www.sccassessor.org/index.php/online-services/property-search/real-property Note2 The City of Palo Alto leases this land for public use; however, it is privately owned. Note3 Value not assessed because land is owned by public agency. Arastradero Lake Felt Lake Boronda Lake 351-12-006 351-05-050 HeritagePark Foothills Park Los Trancos Open Space Preserve Monte Bello Open Space Preserve Upper Stevens Creek Canyon County Park Skyline Ridge Open Space Preserve Long Ridge Open SP Russian Ridge Open Space Preserve Coal Creek Open Space Preserve Jasper Ridge Biological Preserve Rancho San Antonio Open Space Preserve Palo Alto Baylands Nature Preserve Foothill Open Space Preserve Arastradero Preserve Cameron Park Weisshaar Park Mayflield Park Peers Park El Palo Alto Park Lytton Plaza CogswellPlaza Scott Park Kellogg Park Bol Park Rinconada Park Bowden Park Johnson Park Eleanor Pardee Park Boulware Park Terman Park Robles Park Monroe Park Mitchell Park D Jesus Ramos Park Hoover Park Greer Park Baylands Atheletic Byxbee Park Bowling Green Henry Seale Park Sarah Wallis Park Werry Park Juana Briones Park Esther Clark Park WilliamsPark Stanford/Palo Alto Community Playing Fields San Antonio Rd 280 B o ule v ard Alameda de las P ulgas Sa nd Hi l l R o a d 2 8 0 Junipe r o Serra Boulevard P a ge Mi l l Road Ar a s t ra d er o R o a d El Cam i n o R e a l San Antonio Avenue Cha r l e s t o n R o a d G 5 M o n t e B e l l o R o a d MoodyRoad A l t a m on t Roa d O regon Expr e ssway Middlefi e l d R oad Univers 1 0 1 A l m a Street l A l p i n e R o a d Foothill Expre s s w a y H i g h w a y 2 8 0 Lo s Trancos Road Hillview East Bayshore West B ayshore Fabian El M o nte R oa d Sand Hill R oad Road MillPage Skyline Emb a rcader o R oad StanfordUniversity Park Mountain View Los AltosLos Altos Hills Santa Clara County San Mateo County Portola Valley El Camino Park This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Williamson Act Parcels Under Contract for 2018 Parcels with Non Renewal Notices Appproved 0'7000' Williamson Act Parcels 2018 CITY O F PALO A L TO I N C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto cmoitra, 2018-08-29 14:39:23Williamson Act Properties 2018 (\\cc-maps\Encompass\Admin\Personal\Planning.mdb)