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HomeMy WebLinkAbout2002-06-10 City CouncilTO: FROM: City of Palo Alto City Manager’s Report. HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PUBLIC WORKS 7 DATE:JUNE 10, 2002 CMR:269:02 SUBJECT:PUBLIC HEARING: ASSESSMENTS FOR CALIFORNIA AVENUE DISTRICT PARKING BONDS PLAN G FISCAL YEAR 2002-03 REPORT IN BRIEF This report requests that Council hold a public hearing and approve the annual assessment for the California Avenue area parking bonds Plan G for Fiscal Year 2002-03. ° - " The assessment is levied on the basis of building square footage, with a credit given for the off-street parking provided by the property owner. This annual assessment is exempt from Proposition 218 since it is used to pay the cost of existing bonds. Routine maintenance costs for the district are covered by parking permit fees. CMR:269:02 Page 1 of 4 RECOMMENDATION Staff recommends that Council adopt the attached resolutions confirming the Engineer’s Report and Assessment Roll for California Avenue District, Project No. 86-01, and California Avenue District, Project No. 92-13. BACKGROUND In 2001, a. new University Avenue Parking Assessment District was formed to finance the construction of two new parking structures in the University Avenue downtown area. Under Proposition 218, the formation of the new University Avenue Parking Assessment District and the refinancing of the previously existing bonds resulted in a static lien assessment process. Under the fixed lien .process, individual property assessments are fixed and there is no public hearing requirement: Therefore, the University Avenue Parking Assessment District bonds, which are usually presented with the California Avenue Parking Assessment District bonds, no longer exist and will no longer be reflected within this staff report. By virtue of the prior establishment of the assessment district and issuance of debt, Council action is required to levy assessments for the two active parking projects 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 resolutions. These funds are separate and distinct from permit fees that are used to pay for operation and maintenance of parking facilities. The two active projects are listed and described as follows: California Avenue District, Former Keystone Lot Parking, Project 86-01: Surface parking lot on Cambridge Avenue, construction of interim improvements, and a feasibility study for a parking structure on the lot. 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, PaloAlto 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 projects can be found in Attachment C. CMR:269:02 Page 2 of 4 DISCUSSION The assessment rates for FY 2002-03 per square foot of adjusted building area and the amount levied for each project are: PROJECT California Avenue District, Keystone Lot Parking, Project 86-01 ASSESS n NT RATE PER ADJUSTED BLDG SQUARE FOOTAGE $10.13’ $0.0524** Total: DOLLARS LEVIED $107,510.46 $ 35,836.75 $143,347.21 California Avenue District, Ted Thompson Parking Structure, Project 92-13 $10.84’$119,209.89 $0.0581"*$ 39,736.67 Total:$158,946.56 *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 offthe 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 B lists changes made to the assessment roll. The estimated assessments were sent to property owners within the California Avenue district on May 15-, 2002. Assessments were modified due to recent changes in business site conditions (square footage, vacancy, etc.) brought to staffs attention by property owners since the estimated assessments were prepared. Because the hearing itse!fis tlie 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 staffs 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 hear’nag. RESOURCE IMPACT The projects are funded by the assessment district and no City General Fund monies are involved. Although assessments are generally subject, to Proposition 218, these particular assessments are exempt from Proposition 218 since all of the assessment proceeds are pledged to repay previously issued bond indebtedness. CMR:269:02 Page3 of 4 Parking district maintenance costs, including sweeping, landscaping, signing and lighting are paid for by parking permit fees, which were last increased in 1984 in the California Avenue Parking District. 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 Ju!y and will appear on the October property tax bills. ENVIRONMENTAL ASSESSMENT Approval of assessments is exempt by statute for purposes of the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A: Attachment B: Attachment C: Attachment D: " Attachment E: California Avenue Boundary Map Addendum Capital Improvement Projects California Avenue Assessment Rates Resolutions (2) PREPARED BY: DEPARTMENT HEAD: NAFZIGER Associate Engineer GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: E~LY~SON Assistant City Manager California Avenue Area Development Association Chamber of Commerce CMR:269:02 Page 4 of 4 Ted Thorn Parking Garage 92-13 California Avenue Parking Assessment District "Park’Boulevar " Birch Lot ~C-2 / J~OL ..1 (-0-6~ Street "~. -4. -Ash StreeL :-4 I ~ ~ ...... E1 Camino Real . Public Parking Lots~ Currently hssessed~~ Parking Projects~ Asse-ssment District Boundary . SCALE 100 200 FEET Attachment A AB61507 ATTACHMENT B ATTACHMENT C Attachment D 0.08 0.06 o.o# ¢ 0.02 ~ lO.O ~ 8.0 ._~¯6.0 4.0 California Avenue Area Parking District Annual Assessment Rates Project 86-01 Land Assessment I I I i !I I -~I I I I I !I i 8~7 8~8 89 90 91 92 93 " 94 95 96 97 98 99 O0 01 02 88 ’ 89 90 . 91 92 93 94 95 96 97 98 99 O0 01 02 03 Year Building .Assessment 000 0 D *i995 base year weighting 87 88 89 90 91 92 93 ’ 9___4 9~5 9~6 9~7 98 9g 0~0 0~1 0~2 88 89 90 91 92 95 94 95 96 97 98 99 O0 01 02 03 Year Attachment D AB115-2000 Page 1 of 2 Attachment D CALIFORNIA AV~ENUE AREA PARKING DISTRICT ANNUAL ASSESSMENT RATES Project 92-13 iii Oo w 0.08 0106 I..I.I ~; 0.04 ~ 0.02 LAND ASSESSMENT 94 95 96 9~7 98 99 O0 01 02 95 96 97 98 99 00"01 02 05 YEAR ,,< t5.o z’"12.0 ’"11.0 ,,,10.0 []9.0 "’8.0 z 7.01.1.1’ g.0 BUILDING ASSESSMENT !!I I !i !!I 94-95 96 97 98 99 O0 01 02 95 96 97 98 99 O0 01 02 03 YEAR Attachment D AB 1.58-2000 Page 2 of 2 ATTACHMENT E RESOLUTION NO. A RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO CONFIRMING ENGINEER’S REPORT AND ASSESSMENT ROLL CALIFORNIA AVENUE KEYSTONE LOT PARKING PROJECT NO. 86-01 (For Fiscal,Year 2002-2003) THE COUNCIL OF THE CITY OF PALO ALTO DOES RESOLVE as follows: Section i: After proceedings to that end duly had and taken 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. 6485, adopted by the Council of the City of Palo Alto on January 20, 1986; 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; 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, and is fully informed in the premises; 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. 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: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk. APPROVED AS TO FORM: Jones Hall, A Professional Law Corporation By: Stephen R. Casaleggio Bond Counsel Mayor City Manager Director of Public Works Director, Administrative Services Sr. Assistant City Attorney -2- ATTACHMENT E RESOLUTION NO. A RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO CONFIRMING ENGINEER’S REPORT AND ASSESSMENT ROLL CALIFORNIA AVENUE PARKING PROJECT NO. 92-13 (For Fiscal Year 2002-2003) THE COUNCIL OF THE CITY OF PALO ALTO DOES RESOLVE as follows: Section i: After proceedings to that end duly had and taken 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. 7230, 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; 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, and is fully informed in the premises; 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. Section 4: The report togethe~ 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: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM: Jones Hall, A Professional Law Corporation By: Stephen R. Casaleggio Bond Counsel CiZy Manager Director of public Works Director, Administrative Services Sr..Assistant City Attorney -2-