HomeMy WebLinkAboutStaff Report 1710City of Palo Alto (ID # 1710)
City Council Staff Report
Report Type: Action ItemsMeeting Date: 6/13/2011
June 13, 2011 Page 1 of 3
(ID # 1710)
Summary Title: Assessment for Cal. Ave. Area Parking Bonds
Title: Public Hearing –Assessment for California Avenue Area Parking Bonds –
Plan G: FY 2011-2012; Adoption of a Resolution Confirming Engineer’s Report
and Assessment Roll, California Avenue Parking Project No. 92-13 (For Fiscal
Year 2011-2012)
From:City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council adopt the attached resolution (Attachment A) confirming the
Engineer's Report and Assessment Roll for California Avenue District, Project No. 92-13.
Background
By virtue of the prior establishment of the assessment district and issuance of debt, Council
action is required to levy assessments for the active parking project in the California Avenue
area. These assessments will be utilized for the payment of principal and interest on bonds for
capital improvements pursuant to the attached resolution. These funds are separate and
distinct from permit fees that are used to pay for operation and maintenance of parking
facilities.
The active project is listed and described as follows:
1.California Avenue District, Ted Thompson Parking Structure, Project 92-13: Construction of
a two-level parking structure on Cambridge Avenue between Birch Street and Nogal Lane.
Parking bonds issued under Bond Plan G (Section 13.16.150, Palo Alto Municipal Code) require
that a public hearing be held annually (the second Monday in June) on the assessments, which
must be levied to pay principal and interest on the bonds. The purpose of the public hearing is
to allow each property owner the opportunity to question the computation of his/her
assessment and the elements which comprise it, that is, the square footage of each occupied
building, the off-street parking requirements for the usage, and the off-street parking provided.
Assessments are levied on the basis of building square footage, with a credit given for the off-
street parking provided by the property owner. Additional details about the Parking
Assessment District-Plan G bond capital improvement program projects can be found in
Attachment B.
June 13, 2011 Page 2 of 3
(ID # 1710)
Discussion
The assessment rates for FY 2011-12 (Attachment C) per square foot of adjusted building area
and the amount levied for the project is:
PROJECT
ASSESSMENT RATE PER
ADJUSTED BUILDING
SQUARE FOOTAGE
DOLLARS
LEVIED
1.California Avenue District, Ted Thompson
Parking Structure, Project 92-13
$9.96*
$0.058**
Total:
$119,311.11
$ 39,770.31
$159,081.42
*Rate per weighted assessment factor.
**Rate per land square footage.
Approximately $341,000 in excess construction funds in the California Avenue District bond
fund for the Ted Thompson parking garage, Project 92-13, was used to reduce the tax roll
required to pay off the bonds sold to finance the project. To equalize assessments, the funds
were spread uniformly over the duration of the bonds (20 years) beginning with the 1996
assessments.
Attachment D lists changes made to the assessment rolls. The estimated assessments were
sent to property owners within the California Avenue district on May 11, 2011. A map of the
District is contained in Attachment E. Assessments were modified due to recent changes in
business site conditions (square footage, vacancy, etc.), which were brought to staff's attention
by property owners since the estimated assessments were prepared. Because the hearing itself
is the legally prescribed process by which questions about the basis of assessment and the
property owners' individual circumstances may be heard, it may be necessary to have a second
addendum available at the Council meeting that reflects changes brought to staff's attention
since the Council packet was delivered. The public hearing for the assessment district may
need to be continued if last minute information brought forward by property owners cannot be
verified and included in the amended rolls prior to the hearing.
Resource Impact
The project is funded by the assessment district and no City General Fund monies are involved.
Although assessments are generally subject to Proposition 218, this particular assessment is
exempt from Proposition 218 since all of the assessment proceeds are pledged to repay bond
indebtedness issued prior to enactment of Proposition 218. Parking district maintenance costs,
including sweeping, landscaping, signing and lighting are paid for by parking permit fees, which
were last increased in 2005 in the California Avenue Parking District. These are separate from
the funds used to pay for construction of the parking garage.
Policy Implications
Approval of this action does not represent any change to existing City policies.
June 13, 2011 Page 3 of 3
(ID # 1710)
Timeline
The assessments will be sent to the Santa Clara County Tax Collector in July and will appear on
the October property tax bills.
Environmental Review
Approval of assessments is exempt by from the California Environmental Quality Act (CEQA).
Attachments:
·A -Resolution -Cal Ave Park Bonds Plan G 2 (PDF)
·B -Parking Assessment District-Plan (DOC)
·C -Assessment Rates FY 2011-2012 (PDF)
·D -Amendments (DOC)
·E -California Avenue Parking Assessment District Map (PDF)
Prepared By:Mike Nafziger, Senior Engineer
Department Head:J. Michael Sartor, Interim Director
City Manager Approval: James Keene, City Manager
Attachment B
CAPITAL IMPROVEMENT PROJECT
FINANCED BY ASSESSMENT PROCEDURES USING G-BONDS
CALIFORNIA AVENUE AREA
BOND ISSUE AMOUNT OF
BOND ISSUE
PURPOSE OF ISSUE DATE ISSUED DATE OF
MATURITY
INTEREST
RATE
California Avenue
Project 92-13
(Ted Thompson
Garage)
$2,055,000 Construction of a future two level parking structure on lot C-3 and the
two parcels acquired by project 86-01.
11/93 09/02/2015 3.4% -5.4%
Attachment D
CALIFORNIA AVENUE DISTRICT AMENDMENTS
PRELIMINARY ROLL
Address,
Parcel Number
Use Square
Feet
Parking
Reqd.
Parking
Prov
Assessment
92-13
No amendments
AMENDED ROLL
Address,
Parcel Number
Use Square
Feet
Parking
Reqd.
Parking
Prov
Assessment
92-13
No amendments