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HomeMy WebLinkAboutID2773-Assessment-for-California-Avenue-Area-Parking-Bonds-6-11-12City of Palo Alto (ID # 2773) City Council Staff Report Report Type: Action ItemsMeeting Date: 6/11/2012 June 11, 2012 Page 1 of 4 (ID # 2773) Summary Title: Assessment for California Avenue Area Parking Bonds Title: Public Hearing –Assessment for California Avenue Area Parking Bonds – Plan G: FY 2012-2013; Adoption of a Resolution Confirming Engineer’s Report and Assessment Roll, California Avenue Parking Project No. 92-13 (For Fiscal Year 2012-2013) 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) June 11, 2012 Page 2 of 4 (ID # 2773) 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. Discussion The assessment rates for FY 2012-13 (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 $10.15* $ 0.059** Total: $121,565.13 $ 40,521.80 $162,086.93 *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 22, 2012.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 June 11, 2012 Page 3 of 4 (ID # 2773) 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. 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 (DOC) ·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 June 11, 2012 Page 4 of 4 (ID # 2773) Department Head:J. Michael Sartor, Director City Manager Approval: ____________________________________ James Keene, City Manager -1- Attachment A RESOLUTION NO._________ RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO CONFIRMING ENGINEER’S REPORT AND ASSESSMENT ROLL CALIFORNIA AVENUE PARKING ASSESSMENT DISTRICT NO. 92-13 (For Fiscal Year 2012-13) THE COUNCIL OF THE CITY OF PALO ALTO DOES RESOLVE as follows: Section 1: After proceedings conducted pursuant to the Palo Alto Municipal Code, a public hearing has been duly held on the Engineer’s Report and assessment roll prepared for the above fiscal year to pay the principal and interest on bonds issued pursuant to Resolution of Intention No. 7930, adopted by the Council of the City of Palo Alto on August 9, 1993; Section 2: This Council has heard all persons having an interest in any real property within the parking assessment district; has heard all objections, protests, or other written communications from any persons interested in the real property within the district; has taken and received oral and documentary evidence pertaining to the matters contained in the report; and has remedied and corrected any errors or informalities in the report and revised and corrected any of the acts or determinations of the various City officials as contained therein; Section 3: The Engineer’s Report and assessment roll, and each of the assessments therein as fully revised and corrected, is hereby approved and confirmed and adoption of this Resolution constitutes the levy of the assessments for fiscal year 2012-13. / / / / / / / / / / / / / / / / / / / / -2- Section 4: The report together with the certificate of the City Clerk as to the fact and date of approval by this Council, shall forthwith be delivered to the County of Santa Clara, and the proper County officer shall cause to be posted to the tax rolls, in the column provided therefor the amount of each of the assessments proposed to be levied and collected for the fiscal year as set forth in the report as confirmed. INTRODUCED AND PASSED: _____________, 2012 AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM: Jones Hall,City Manager A Professional Law Corporation Director of Public Works By: Christopher K. Lynch, Bond Counsel Director of Administrative Services Senior Asst.City Attorney 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