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HomeMy WebLinkAbout2001-01-22 City Council (11)TO: FROM: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL 1 1 CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE:JANUARY 22, 2001 CMR: 114:01 SUBJECT:ADOPTION OF A RESOLUTION TO APPROVE THE CITY OF PALO ALTO’S INTENTION TO MAKE ACQUISITIONS AND IMPROVEMENTS TO THE UNIVERSITY AVENUE AREA OFF-STREET PARKING ASSESSMENT DISTRICT; AND ADOPTION OF A RESOLUTION PRELIMINARILY APPROVING ENGINEER’S REPORT AND DIRECTING ACTIONS WITH RESPECT TO THE UNIVERSITY AVENUE AREA OFF-STREET PARKING ASSESSMENT DISTRICT REPORT IN BRIEF On November 27, 2000, Council approved staff recommendations to move forward with the simultaneous construction of two new parking garages. To form. the new assessment district staff recommends Council adopt two resolutions (Atfachments A and B) with the following purposes: 1)A Resolution of Intention to Make Acquisitions and Improvements - University Avenue Area Off-Street Parking Assessment District; and 2)A Resolution Preliminarily Approving Engineer’.s Report and Directing Actions With Respect Thereto - University Avenue Area Off-Street Parking Assessment District These resolutions include actions that begin the formal assessment process, make the various findings required by the assessment laws, establish an assessment ballot process, and order the public hearing necessary to form an assessment district. The Preliminary Engineer’s Report (PER ~-Attachment C) is akey document for Council approval. It includes: the type and cost of all improvements within the proposed district; the method by which all costs will be apportioned to property owners; a complete listing of the CMR:114:01 Page 1 of 13 parcels that will be assessed; and the dollar value of the proposed assessment based upon the capital needs of the project. The PER has been prepared to conform to the requirements of the City Code, state statutes, and Article XIIID of the State Constitution (Proposition 218). If the resolutions are adopted, the City will send a written notice of the proposed assessment to each property owner in the proposed assessment district. The notice will tell each owner what his or her proposed assessment amount will be and the method of the assessment. The mailing will include the required assessment ballot, an information brochure, and notice of a public hearing on March 19. Ballot tabulation would occur a~er the hearing’s close. If there is a majority property owner approval (based on dollars assessed) of votes cast, the City Council may approve the formation of the assessment district and move forward. If the district is approved, staffproposes that Council approve financing in two series of bond issues. The first, valued at $9.4 million, will refinance existing assessment bonds at better rates and fully cover the costs of planning design for the new parking structures. The second series, valued at $39.6 million will finance $36.5 million in costs for the parking garages and $3.1 million in costs for a non-parking area. Total costs are estimated at $49.0 million. There are a number of financial impacts from this project. The estimated annual debt service in the District is expected to rise over time from the current $.35 per square foot to a projected maximum level of $1.45 per square foot. The City will have an annual assessment estimated at around $76,000. In addition to being assessed, the City would have an annual . debt service payment, conservatively estimated at $286,000, for construction of the non- parking area. The latter cost would be offset by any space rented for commercial use. It is important to note that all estimated costs are subject to change based upon future interest rates. Finally, responding to Council questions regarding use of the PAMF parking site, staffhas researched parking alternatives (Attachment E). Replacement parking for spaces eliminated by construction is a complex issue needing further research in the coming year. CMR:114:01 Page 2 of 13 RECOMMENDATION Staff recommends that Council (Attachments A and B): adopt the following resolutions which are attached A Resolution of the City Council of the City of Palo Alto of Intention to Make Acquisitions and Improvements, University Avenue Area Off-Street Parking Assessment District A Resolution of the City Council of the City of Palo Alto Preliminarily Approving Engineer’s Report and Directing Actions With Respect Thereto, University Avenue Area Off-Street Parking Assessment District BACKGROUND During the past year, Council has taken several steps toward building two new parking structures in the downtown area. On February 7, 2000 (CMR: 133:00), Council approved the PC zone ordinances that established the development plans for two multi-level parking structures. One structure will be located on Lot R (south of University Avenue, between High/Alma Streets) and the other on Lots S and L (Bryant Street/Lytton Avenue). On November 27, 2000, Council approved staff’s recommendations to simultaneously construct two new parking structures and to defer detailed design on the non-parking space of the S/L garage (CMR:428:00). Use of this area, originally intended for a Teen Center and commercial/retail activity, may change pending the outcome of a Youth Master Plan that is being conducted. On November 27, staff provided general information on the costs of building the new garages and non-parking space and a financing strategy. During the same evening, Council expressed concern about the impact on the neighborhood of using the PAMF parking lot site for parking displaced by construction. Staff was directed to explore alternatives to using the PAMF site. DISCUSSION This report involves actions necessary to move forward with formation of an assessment district, provides more precise informa~tion on the City’s financing strategy and the financial impacts of the project, and responds to several Council questions raised on November 27. It focuses on four areas: Formation of a new assessment district through preliminary adoption of the Engineer’s Report and consequent voting process, procedures, and approvals necessary to form a new assessment district The financial strategy to refinance of existing downtown assessment bonds and the final design and construction of the garages and the non-parking area CMR:114:01 Page 3 of 13 Staff research on alternatives for replacement parking during construction Anticipated fiscal impacts of construction (garages and non-parking area) on University Avenue Area Off-Street Parking Assessment District and the.City of Palo Alto Formation of a New University Avenue Area Off-Street Parking Assessment District The Preliminary Engineer’s Report To finance construction of the parking garages, the City of Palo Alto must form a new downtown parking assessment district. Authority to create this District is granted under the Municipal Improvement Act of 1913 (the Act). Creation of this District is also subject to Article XIIID (the Article) of the State Constitution, which was enacted by the people upon passage of Proposition 218. Specific steps and requirements must be followed in creating an assessment district. While assessment districts were created-under prior law, Proposition 218 requires that assessments be apportioned strictly based on special benefit to properties; and also requires a special assessment ballot process. Formation of an assessment district requires that all assessments be supported by a detailed engineer’s report prepared b\ a registered professional engineer certified by the State of California. The City hired the firm of Harris and Associates, a firm with extensive experience in assessment districts, as the professional engineer (Engineer). With input from City staff, bond counsel, and the City’s financial adviser, the Engineer has prepared a Preliminary Engineer’s Report (PER) which is Attachment C. This report includes all of the maps, plans, specifications, descriptions, diagrams, and shows cost estimates for the proposed project including all costs for district formation and bond issuance. Proposition 218 requires that: ¯a parcel’s assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel ¯only special benefits are assessable and the local agency must separate general from special benefits ¯public properties benefiting from the improvements must be assessed One of the most important functions of the Engineer’s Report is to demonstrate that the apportionment formula complies with Proposition 218. Several alternative apportionment formulas were explored by the Engineer and staff, including formulas based on land use and a re-examination of the current blended rate formula. The PER recommends continued use of the blended rate formula whereby a parcel’s assessment is based on 1 parking space for CMR:114:01 Page 4 of 13 250 square feet (4 per 1000 square feet) of developed floor area. The PER provides a rationale and evidence that this method conforms to requirements of the ACT and Proposition 218. In addition, the Engineer proposes a fixed lien assessment instead of the Variable lien assessment that is now used. Under the variable lien, the amount assessed varies based on vacancies. When the City conducts its one-.time, annual survey of properties, a property owner is not charged an assessment if his or her property is vacant on the survey date. All annual ~:~essment costs are borne by the remaining property owners. Given the demand for space in the downtown, which results in short vacancies, and the administrative costs of implementing a variable lien, it is recommended that a fixed lien assessment be approved. So that the assessment system for existing bonds is made congruent, it is proposed that ¯ existing bonds will be refinanced as part of the new assessment process. General benefits from the non-parking area (for potential Teen Center/commercia! use) are not being assessed to the district and will be funded by the City. Public properties such as the Civic Center (see Appendix 2 Assessment Roll) are included in the new assessment district and will bear their share of costs for parking benefits. Assessment Balloting Process According to Proposition 2 i 8. each property owner is given an opportunity to vote on the proposed assessment and each vote is weighted according to the amount of the assessment. Total costs for the new garages are cited in Appendix 1 of the PER (Attachment C). These costs are spread to each parcel inthe district and they are shown in Appendix 2 of the PER. The preliminary assessments proposed will determine the weight of each returned ballot. Customized assessment ballots, notices of a public hearing, and informational brochures will be mailed to each property owner in the proposed assessment district. Staff has developed Assessment Balloting Procedures to guide in the day to day management of the ballot. These are attached for review by Council (Attachment D) and would be approved through adoption of the Resolutions. Early in the balloting period; staff will host informal workshops with property owners and the Chamber of Commerce to discuss the benefits of the garages and ¯ to address any questions or issues. In addition, staff is preparing a Web site to answer any questions property owners may have. The property owners may return the ballots at any time up till the close of the public input portion of the public hearing on the District, which will be set by the Resolution for March 19, 2001. Both the Act and Proposition 2.18 require that notices be sent to property owners at least 45 days prior to the public hearing. Ballots must be returned in a sealed envelope and kept sealed until the close of the public input portion of the public hearing. At the close of the public hearing, the returned votes will be tabulated based on the amount of the relative assessment. If a majority of ballots submitted vote to approve the assessment, Council may CMR:114:01 Page 5 of 13 approve the Engineer’s Report and the assessments, direct the filings of assessment liens, and order the mailing of notices to property owners of confirmation of the assessments and of their option to make cash.payment. The cash payment period is a minimum of 30 days. If the property owners in the district approve these costs through a vote, the assessments outlined within the PER represent the highest principal amount that can be imposed on the property owners without a subsequent balloting process. Actual, annual assessments (principal plus interest) will be dependent on the interest rate determined on the day bonds ’are sold. Financing the Parking Structures & Non-Parking Area (Teen Center/Commercial Use) Staff recommends that the refinancing of the District’s bonds and the financing of final design and construction of the garages and non-parking area occur in two phases. The first phase will include the refinancing of $3.43 million in outstanding 1977 and 1989 University Avenue Assessment District (District) principal payments. Analysis by the City’s financial advisor shows that the District will realize $121,000 in net present value or 5.2 percentage savings from refunding these bonds. In the first phase, the District would also issue bonds to reimburse the City for $1.4 million in costs ($.8 million to the Parking In-Lieu Fund and $.6 million to the Budget Stabilization Reserve) for design work completed to date and for work that will bring design to 100 percent completion. Total costs to be funded by the District in the first phase are around $9.4 million (see Attachment C, Appendix 1, for cost details). Once the assessment district receives property owner approval and Council authorizes the sale of bonds, it is anticipated that first phase bonds will be issued in late May. The second financing phase will occur just prior to construction, which is slated for March or April 2002. Second phase costs to construct the garages and the non-parking area are projected at nearly $39.6 million. These .expenses include construction, contingency, bond issuance, inflation and other costs. Two series of bonds will be issued in the second phase: one issue for 36.5 million to fund the garages and a second issue for 3.1 million to fund the non-parking space area. Separate bonds in the second phase are necessary to avoid District property owners paying for the construction of the non-parking area. Unlike the assessment district, the City will have no new revenue source to construct the non-parking area. While the City will use Certificates of Participation, whereby existing assets are pledged against lease payments, the City must either absorb or offset this cost in its operating budget. By renting space in the 8,100 square foot non-parking area, however, the City has the ability to raise revenue tO offset its annual costs. Scenarios depic.ting potential mixes of City and commercial use in the non-parking area and revenue offsets are discussed in the Resource Impact section of this report. CMR:114:01 Page 6 of 13 The timing and structure of the phased financing will result in an increase in assessments over time to cover debt service. These debt service payments are discussed in the Resource Impact Section of this report. Staff Research and Responses to Council Questions Concerning Replacement Parking Alternatives Construction of two new garages will result in a short-term loss of approximately 189 parking spaces (37 permit spaces and 152 customer spaces) in the downtown area for a period of approximately one and one half years. As reported in CMR:428:00, staff has been researching replacement parking options during construction. Staff previously recommended that the City re-acquire control of all floors of the Cowper/Webster garage, as well as using the old Palo Alto Medical Foundation (PAMF) parking lot site for public parking. This would provide over 200 parking spaces. At its November 27, 2000 meeting, Council directed staffto explore alternatives to using the PAMF parking lot for parking during construction. While this is a complex issue that will be pursued over the upcoming year, the following information and options are presented for Council consideration: Several private property sites have been considered for alternative parking during construction (Attachment E). However, private property owners contacted were unwil.ling to commit their sites, at this time, for the 1.5 year construction period. They were, however, willing to consider use as the date of the start of construction becomes more firm. Since there will be a substantial loss of short-term parking, an option is to convert up to approximately 152 permit spaces in the Civic Center and Cowper/Webster garages to customer parking, and use the old PAMF parking lot for permit parking. Conversion of permit spaces to short-term spaces would be achieved through attrition or by not issuing or renewing a numberofpermits 6 to 9 months prior to the beginning of construction. Using the PAMF lot for permit parking would also minimize traffic in the neighborhood because turnover of permit spaces is very low throughout the day. Staff is researching the feasibility of attendant service for short-term parking at the Civic Center and Cowper/Webster garages.. Additional time is needed to evaluate the number of spaces that could be gained and the cost of operating attendant service. Other efforts are being made to supplement parking throughout the downtown. In addition, the City is addressing downtown congestion and parking problems through various Transportation Demand Management (TDM) programs. Current TDM programs organized by the City’s Commute Coordinator for the Downtown Business District include: CMR:114:01 Page 7 of 13 ¯Employee/employer commute assistance ¯Commute Fairs for employers ¯Ride-matching for carpool/vanpool ¯TDM marketing efforts coordinated with Marketing Committee. ¯Downtown carpool parking permit program the Chamber of Commerce Additional TDM programs planned for the spring of 2001 include: ¯Guaranteed Ride Home program ¯"Commuter Check" workshop for area employees Downtown It is important to note that the City supports a variety of other activities that affect traffic. These include: the bike station at the University Avenue Cal Train station; provision and maintenance of downtown bicycle lockers; school trip reduction programs in Palo Alto schools; the Palo Alto Shuttle; work to extend the Marguerite Shuttle service into downtown; and work to connect the Menlo Park Shuttle through a transfer point with the Palo Alto Shuttle. It is expected that these efforts, along with the identification of replacement spaces during construction, will help reduce demand for parking downtown. RESOURCE IMPACT Building the garages and the non-parking space results in a variety of resource impacts to the University Avenue Area Off-Street Parking Assessment District and to the City of Palo Alto. Estimated total project costs are as follows: Garages Phase I Refinancing outstanding assessment bonds Less current reserves and assessments Planning, design, management and other costs Financing costs such as bond reserve, capitalized interest... Total for Phase I $3,479,000 - 1,262,000 6,088,000 1,115,000 $9,420,000 Phase II Construction of garages on Lots R and S/L including contingency,inflation factor, general conditions, etc. Financing costs such as bond reserve, capitalized interest... Total for Phase II $31,901,000 4,583,000 $36,484,000 Total of Phase I and II - Assessment District Principal Costs $45,904,000 CMR:114:01 Page 8 of 13 Non-Parking Area for Teen Center/Commercial Use Phase I Design $ 394,000 Phase II Construction Financing costs Total for Phase II $ 2,301,000 405,000 $ 3,100,000 Total of Phase I and II Total Project Costs $ 3,400,000 $49,004,000 It is important to note that the financing costs for the non-parking area are rough estimates since there is uncertainty about what the use of this area will be. Estimated Annual Financial Impacts on Assessment District Since the financing will occur over several phases, the assessments to property owners will increase over a three-year period beginning in fall 2001. By the year 2004, the full impact of assessment costs will be levied on property owners. Annual debt service costs that the District property owners must pay will be approximately $3.3 million (annual assessment is based on a 30-year amortization and an estimated 6 percent interest rate). This translates into an average estimated annual coat of approximately $1.45 per square foot. Since a portion of this debt service is attributable to refinancing existing debt, which property owners are currently paying at $.35 per square foot per year, the incremental cost to land owners from " the new structures is estimated at $1.10 per square foot annually. Estimated Annual Impacts on the City of Palo Alto There will be several fiscal impacts on the City: The primary benefit of the refinancing to the City is that all debt will be paid as a fixed lien, relieving staff of annual surveys and administrative work. The fixed lien method also benefits property owners by creating a stable and predictable annual assessment for the life of the district. The refinancing will cost the City an estimated $6,000 in expense. Under Proposition 218, the City must pay its proportionate share of the assessments levied. Based on the City’s properties in the District including the Civic Center, Senior Center and the S/L non-parking element, the City’s obligation will be an estimated $76,000 annually. Funding for the assessment payment would come from the General Fund. CMR: 114:01 Page 9 of 13 The General Fund will also be responsible for financing the costs associated with building the non’parking area of the S/L garage. In the first financing stage, the General Fund must pay approximately $.4 million in design and other costs for the non-parking element. Since it would be costly and inefficient to finance this small amount, it is recommended that the City draw on the Budget Stabilization Reserve (BSR) for the $.4 million, to be reimbursed once Certificates of Participation are issued. In the second stage of the financing, the City would finance the $2.2 million construction cost of the non-parking area as well as the reimbursement of the $.4 million in design costs incurred in the first stage financing. Depending upon the mix of private and public use of the non-parking element, annual debt service can range as high as $286,200. Any rental income realized from use of this area for commercial purposes would be used to offset this cost. Teen Center/Commercial Space As discussed in CMR:428:00, the City is developing a Youth Master Plan that is examining whether a .single site, downtown Teen Center is optimal or whether another structure for delivering teen services is viable. To preserve its options for the non-parking area, the City will incur additional costs. Whereas a Teen Center would have been exempt from.being charged parking assessment costs, uncertainty about its future use requires the City to cover the full share of parking assessment costs which are estimated at $11,000 annually. As mentioned in CMR:428:00, the City’s ability to offset its expenses for the non-parking space depends upon the amount of space it is willing to lease for retail and office use. Attachment F shows a variety of scenarios for .utilization of this 8,100 square foot area. Based on recent information on downtown rental rates, it appears the City could realize around $4.50 per square foot for retail space and around $8.50 per square foot for office- space. Should the City decide to rent all of the 8,100 square feet based on an equal division of space for retail and commercial use, it could realize approximately $578,000 annually. Annual debt (based on taxable bonds) is estimated at $286,000 annually, leaving a considerable margin of new revenue for General Fund purposes. Should the City place a Teen Center (which would occupy approximately 4,400 of the 8,100 square feet available) in the non-parking space, the City could realize up to $231.,000 in rental revenue for the remaining space (based on rents per square foot cited above). Annual debt service, based on non-taxable bonds, is estimated at $250,000 annually. Naturally, should the City decide to use the entire space for a Teen Center and/or non-profit use, there would be minimal or no rental revenue to offset debt service costs. These costs would then have to be funded by either growth in General Fund revenues or a decrease in existing serviCes. CMR:114:01 Page 10 of 13 It is critical that the City make a policy decision on use of the non-parking space prior to the issuance of phase two bonds in spring 2002. In order to conform to federal tax law on the use of tax exempt versus taxable financing, an allocation of space between public and private use is needed in the near future. In summary, should a new assessment district be formed, the City can expect the following expenses: Annual Assessment Costs Annual Debt Service Total Annual Costs $ 76,000 $286,0O0 $362,000 Total costs would be offset by potential revenue from commercial rentals. Remaining expenses would need to be funded fi~om a growth in existing General Fund revenues and/or a reduction in current expenditures. TIMELINE 2001 January 22 By February 3 Early February- March March Council adopts two resolutions: Resolution of Intention to Make Acquistions and Improvements and Resolution Preliminarily Approving Engineer’s Report and Directing Actions with Respect Thereto. City mails Notices of Proposed New Assessment and Assessment Ballots to property owners. City conducts informal workshops with property owners and Chamber of Commerce Council holds public hearing. Ballots are tabulated after the close of the public hearing, either on the night of the public hearing or later, or reported at a subsequent Council meeting. If there is affirmative approval by a majority balloting based on dollars assessed, Council adopts a Resolution Adopting Engineer’s Report, Confirming the Assessment, Ordering the Work and Directing Actions with Respect Thereto and approves consultant contract to complete the design of the garages. CMR: 114:01 ¯ Pagellofl3 April May April- December Publish and mail notices of assessment payment to each property owner informing them of assessment and a cash payment option for the first series of bonds. Property owners have 30 days to pay cash for all or part of their confirmed assessment Council adopts Resolution Authorizing the Issuance of Limited Obligation Improvement Bonds. This resolution confirms assessments after any cash payments and approves the bond sale documents required for a public offering of bonds City issues first in series of bonds to reimburse project costs already spent, fund additional design costs, and refinance existing Downtown Assessment District bonds. Design work completed 2002 January March Construction bids solicited Publish and mail notices of assessment payment to each property owner informing them of assessment and a cash payment option for the second series of bonds. Property owners have 30 days to pay cash for all or part of their confirmed assessment. Award construction contract April Council adopts Resolution Authorizing the Issuance of Limited Obligation Improvement Bonds. This resolution confirms assessments after any cash payments and approves the bond sale documents required for a public offering of bonds. City issues second series of bonds to finance construction of garages and non-parking area Construction begins ENVIRONMENTAL REVIEW The City Council certified an Environmental Impact Report for the project pursuant to Resolution No. 7917, adopted December 20, 1999. CMR:114:01 Page 12 of 13 ATTACHMENTS Attachment A- Resolution of Intention to Make Acquisitions and Improvements - University Avenue Area Off-Street Parking Assessment District Attachment B- Resolution Preliminarily Approving Engineer’s Report and Directing Actions with Respect Thereto - University Avenue Area Off-Street Parking Assessment District Attachment C - Preliminary Engineer’s Report for Proposed University Avenue Off-Street Parking Assessment District Attachment D - Balloting Procedures for Proposed Assessment District Attachment E - Potential Alternative Parking Areas Attachment F - Financial Scenarios for Non-Parking Space PREPARED BY:Joe Saccio, Manager, Investments and Debt Karen Bengard, Senior Engineer DEPARTMENT HEAD APPROVAL: CITY MANAGER APPROVAL: Administrativ~rvices . . Director of Public Works EM~ARRISON Assistant City Manager CMR: 114:01 Page 13 of 13 ATTACHMENT A RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALO ALTO OF INTENTION TO MAKE ACQUISITIONS AND IMPROVEMENTS UNIVERSITY AVENUE AREA OFF-STREET PARKING ASSESSMENT DISTRICT The City Council (the "Council") of the City of Palo Alto (the "City"), County of Santa Clara (the "County"), State of California, resolves as follows: I. Intention. This Council. preliminarily determines that the public interest, convenience and necessity require, and that it intends to order the making of the acquisitions and improvements described in Exhibit "A" attached hereto and made a part hereof in and for the City’s proposed University Avenue Area Off-Street Parking Assessment District (the "Assessment District"). 2. Law Applicable. Except as herein otherwlse provided for the issuance of bonds, all of the work shall be done as provided in the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code of Callfornia, as amended and modified by other applicable laws (collectively, the "Act"), except that the provisions of the Refunding Act of 1984 for 1915 Act Improvement Bonds, Part 11.5 of Division I0 of the California Streets and Highways Code shall apply to any refunding of any outstanding bonds which may be refunded, in whole or in part, in these proceeding and the provisions of Section 13.12.050 of the Palo. Alto Improvement Procedure Code relating to the acquisition of City property shall also apply. 3. Nature and Location of and Grades for Improvements. All of the work and improvements are to be constructed at the places and in the particular locations, of the forms, si~es, dimensions and materials, and at the lines, grades and elevations, as shown and delineated upon the plans, profiles and specifications to be made therefor, as hereinafter provided. There is to be excepted from the work above described any of such work already done to line and grade and marked excepted or shown not to be done on the plans, profiles and specifications. Whenever any public way is herein referred to as running between two public ways, or from or to any public way, the intersections of the public ways referred to are included to the extent that work is shown on the plans to be done therein. The streets and highways are or will be more particularly shown in the records in the office of the County Recorder of the County and shall be shown upon the plans. 4. Change of Grade. Notice is hereby given of the fact that in many cases the work and improvements will bring the finished work to a grade different from that formerly existing, and that to the extent the grades are hereby changed and that the work will be done to the changed grades. 5. Work on Private Property. In cases where there is any disparity in level or size between the improvements proposed to be made herein and private property and where it is more economical to eliminate such disparity by work on the private property than by adjustment of the work on public property, it is hereby determined. that it is in the public interest and more economical to do such work on private property to eliminate such disparity. In such cases, the work on private property shall, with the written consent of the owner of the property, be done and the actual cost thereof may be added to ¯ the proposed assessment of the lot on which the work is to be done. 6. Official Grades. This Council does hereby adopt and establish as the official grades for the work the grades and elevations to be shown upon the plans, profiles and specifications. All such grades and elevations are to be in feet and decimals thereof with reference to the datum plane of this City. 7. Descriptions - General. The descriptions of the acquisitions and improvements and the termini of the work contained in this Resolution are general in nature. All items of work do not necessarily extend for the full length of the description thereof. The plans and profiles of the work and maps and descriptions as contained in the Engineer’s Report, hereinafter directed to be made and filed, shall be controlling as to the correct and detailed description thereof. 8. Special Benefit and Boundary Map. The contemplated acquisitions and improvements, in the opinion of this Council, are of more than general or ordinary public benefit, and the costs and expenses thereof are made chargeable upon the Assessment District, the exterior boundaries of which are shown on a map thereof on file in the office of the City Clerk, to Which reference is hereby made for further particulars. The map indicates by a boundary line the extent of the territory proposed to be included in Assessment .District and shall govern for all details as to the extent of the Assessment District. 9. Engineer’s Report. The acquisitions and improvements are hereby referred to Harris & Associates, Concord, California, being a competent firm employed for the purpose hereof as Engineer of Work for the Assessment District (the "Engineer of Work"), and the Engineer of Work is hereby directed to make and file with the City Clerk a report in writing (the "Engineer’s Report"), presenting the following: (a) Maps and descriptions of the lands and easements to be acquired, including any construction and related easements and rights, if any; (b) Plans and specifications of the proposed improvements if the improvements are not already installed. The plans and specifications do not need to be detailed and are sufficient if they show or describe the general nature, location, and extent of the improvements. If the Assessment District is divided into zones, the plans and specifications shall indicate the class and the type of improvements to be provided for each zone. The plans -2- or specifications may be prepared as separate documents, or either or both may be incorporated in the Engineer’s Report as a combined document. (c) A general description of works or appliances already installed and any other property necessary or convenient for the operation of the improvements, if the works, appliances, or property are to be acquired as part of the improvements. (d) An estimate of the cost of the improvements and of the cost of lands, rights-of-way, easements, and incidental expenses in connection with the improvements, including any cost of issuing and registering bonds. (e) A diagram showing, as they existed at the time of the passage of this Resolution, all of the following: (I) The exterior boundaries of the Assessment District. (2) The boundaries of any zones within the Assessment District. (3) The lines and dimensions of each parcel of land within the Assessment District. (f) A proposed assessment of the total amount of the cost and expenses of the proposed improvement upon the several subdivisions or parcels of land in the Assessment District in proportion to the estimated benefits to be received by each subdivision, respectively, from the improvement. The assessment shall refer to the subdivisions by their respective numbers as assigned pursuant to subdivision (e). Each subdivision, shall be given a separate number upon the diagram. The diagram may refer to the county assessor’s maps for a detailed description of the lines and dimensions of any parcels, in which case those maps shall govern for all details concerning the lines and dimensions of the parcels. When any portion or percentage of the costs and expenses of the acquisitions and improvements is to be paid from sources other than assessments, the amount of such portion or percentage shall first be deducted from the total estimated cost and expenses of the acquisitions and improvements, and the assessment shall include only the remainder of the estimated cost and expenses. i0. Use of Surplus. If any excess shall be realized from the assessment it shall be used, in such amounts as this Council may determine, in accordance with the provisions of the Act, for one or more of the following purposes: "(a) Transfer to. the general fund of this City, provided that the amount of any such transfer shall not exceed the lesser -3- of $I,000 or 5% of the total amount expended from the improvement fund; (b) As a cred±t upon the assessment and any supplemental assessment or for the redemption of bonds, or both; or (c) For the maintenance of the improvements. II. Contact Person. Michael Nafziger, Assistant Engineer, ¯ Department of Public Works, City of Palo Alto, is hereby designated as the person to answer inquiries regarding any protest proceedings to be had herein, and may be contacted during regular office hours at City Hall, 250 Hamilton Avenue, Sixth Floor, Palo Alto, California, 94301, or by calling telephone number (650) 617-3103. 12. Improvement Bonds. Notice is hereby given that serial and/or term improvement bonds (the. "Bonds") to represent unpaid assessments, and bear interest at the rate of not to exceed such rate of interest as may be authorized by applicable law a the time of sale of such bonds, will be issued hereunder in the manner provided by the Improvement Bond Act of 1915, Division i0 of the California Streets and Highways Code (the "Bond Law"), the last installment of which bonds shal! mature not to exceed twenty-nine (29) years from the second day of September next succeeding twelve months from their date. The bonds shall be issued in such series and shall mature in such principal amounts at such times as shall be determined by this Council at the time of the issuance of such bonds.. The provisions of Part II.I of the Bond.Law, providing an alternative procedure for the advance payment and calling of bonds, shall apply to the bonds issued in these proceedings. It is the intention of this Council to create a special reserve fund pursuant to and as authorized by Part 16 of the Bond Law. It is the intention of the City that the City will not obligate itself to advance available funds from the treasury of the City to cure any deficiency in the redemption fund to be created with respect to the bonds; provided, however, that a determination not to obligate itself shall not prevent the City from, in its sole discretion, so advancing funds. 13. Refunding of Bonds. The bonds may be refunded pursuant to the provisions of Division 11.5 of the California Streets and Highways Code upon the determination of the Council of the City that the public interest or necessity requires such refunding. Such refunding may be undertaken by the Council when, in its opinion, lower prevailing interest rates may allow reduction in the amount of the installments of principal and interest upon the assessments given to owners of property assessed for the works herein described. The refunding bonds shall bear interest at a rate not to exceed that which is stated in the resolution of the Council expressing its intention to issue the refunding bonds, which resolution of intention shall also set forth the maximum term of years of the refunding bonds. The refunding shall be accomplished pursuant to Division 11.5 (commencing with Section 9500) of the California Streets and Highways Code, except that, if, following the filing of the report specified in Section 9523 and any subsequent modifications of the report, the Council finds that each of -4- the conditions specified in the resolution .of intention to issue the refunding bonds is satisfied and that adjustments to the assessments are on a pro-rata basis, the Council may approve and confirm the report and may, without further proceedings, authorize, issue and sell the refunding bonds pursuant to Chapter 3 (commencing with Section 9600) of Division 11.5 of the California Streets and Highways Code. 14. Division 4. Reference is hereby made to proceedings had pursuant to Division 4 of the Streets and Highways Code of California lwhich are on file in ~the office Of the City Clerk. It is the inhention of this Council to comply with Division 4 of the Streets and Highways Code of California by proceeding under Part 7.5 thereof. To that end, the Engineer-of Work is hereby directed to include in the Engineer’s Report all of the material specified by such Part 7.5 and for which the total true value shall be estimated as the full cash value of the parcels of land in the Assessment District as shown on the last equalized assessment roll of the County, or alternatively, by other reasonable means prescribed by this Council. 15. No Private Contract. Notice is hereby given that, in the opinion of this Council, the public interest will not be served by allowing the property owners to take the contract for the construction of the improvements and therefore that, pursuant to Section 20487 of the California Public Contract Code, no notice of award of contract shall be published. 16. Reimbursement Declaration. The City intends to issue the Bonds, which are "Obligations" under United States Income Tax Regulations section 1.150-2 (the "Regulations"), in the maximum principal amount of approximately $50,000,000 to finance all or a portion of the costs of the Improvements. The Council hereby declares that the City reasonably expects to use a portion of the proceeds of the Bonds for reimbursement ~f expenditures for.the Improvements that are paid before the date of issuance of the Bonds. This section of this resolution shall be Solely for the purpose of complying with the provisions of the Regulations and shall not be deemed an approval of all or any part of the Assessment District or a commitment on the part of this Council to issue any or all of the Bonds or otherwise provide for financing. 17. Bond Counsel. The firm of Jones Hall, A Professional Law Corporation, San Francisco, California, is hereby appointed as bond counsel to the City for proceedings under this resolution. The City Attorney or designee thereof is hereby authorized and directed to enter into-an appropriate agreement with Jones Hall for their services as bond counsel. -5- INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM: Jones Hall, iy pro~oration stephen R. Casaleggio Bond Counsel City Manager Director of Public Works Director, Administrative Services Sr.Assistant City Attorney EXHIBIT A CITY OF PALO ALTO UNIVERSITY AVENUE AREA OFF-STREET PARKING ASSESSMENT DISTRICT DESCRIPTION OF WORK Within the City of Palo Alto (the ~ City" ), County of Santa Clara, State of California, the construction .and acquisition of the following public vehicle off-street parking improvements, including ~he acquisition of all lands, easements, rights-of-way, licenses, franchises, permits, and any outstanding assessments, the removal of all existing improvements and the construction of all auxiliary work necessary and/or convenient to the accomplishment thereof in accordance with plans and specifications to be approved by the City: i. The Site S/L Garage to be constructed on a site of approximately 40,400 square feet located in the block bounded by Bryant Street, Lytton Avenue, Florence Avenue and University Avenue and consisting of a reinforced" concrete structure of seven levels (five above-ground and two below ground levels, with approximately 692 parking spaces and approximately 8,100 square feet of non-parking space, but excluding any portion of such structure to be used for other than vehicle parking or related uses. 2. The Site R Garage to be constructed on a site of approximately 25,200 square feet located in the block bounded by Alama Street, High Street, University Avenue and Hamilton Avenue and consisting of a reinforced concrete parking structure of five parking levels (all above ground) with approximately 228 parking spaces. The foregoing shall include restrooms, bicycle racks and lockers, elevators, stairs, electric vehicle charging hook-ups, landscaping and architectural treatments and appurtenances. A-I ATTACHMENT B RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALO ALTO PRELIMINARILY APPROVING ENGINEER’S REPORT AND DIRECTING ACTIONS WITH RESPECT THERETO UNIVERSITY AVENUE AREA OFF-STREET PARKING ASSESSMENT DISTRICT The City Council (the "Council") of the City of Palo Alto (the "City"), County of Santa Clara (the "County"), State of California, resolves as follows: i. Resolution of Intention. On January 22, 2001, this Council adopted its Resolution of Intention to Make Acquisitions and Improvements, (the "Resolution of Intention") under the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code of California, as amended and modified by other applicable laws’ (collectively, the "Act") to initiate proceedings under the Act in and for the City’s University Avenue Area Off-Street Parking Assessment District (the "Assessment District"). 2. Engineer’s Report. The Resolution of Intention referred the acquisitions and improvements described therein to Harris & Associates as the Engineer of Work and directed the Engineer of Work to prepare and file with the City Clerk a report entitled the "Preliminary Engineer’s Report" (the "Engineer"s Report") pursuant to the Act and containing information set forth in the Resolution of Intention, to which reference is hereby made for further particulars. 3. Engineer’s Report Preliminarily Approved. The Engineer of Work has prepared and filed the Preliminary Engineer’s Report with the City Clerk, and this Council~ with the aid of City staff has reviewed the Engineer’s Report, and hereby finds it to be sufficient for, and that it shall stand for purposes of subsequent proceedings for the Assessment District and the Engineer’s Report is hereby preliminarily approved. 4. Public Hearing. Pursuant to the Act, this Council hereby orders that a public hearing shall be held before this Council, in the regular meeting place thereof, City Council Chambers, City Hall, 250 Hamilton Avenue, Palo Alto, California on March 19, 2001, at the hour of 7:00 o’clock p.m., for the purposes of this Council’s determination whether the public interest, convenience and necessity require the acquisitions and improvements, whether the properties in the Assessment District are specially benefited by the acquisitions and improvements, the tabulation of special assessment ballots and the determination of the existence of any majority protest and this Council’s final action upon the Engineer’s Report and the assessments therein. The public hearing may be continued from time to time as determined by the Council. 5. Notice. The City Clerk is hereby authorized and directed to cause notice of the hearing ordered under. Section 4 hereof to be given by mailing, postage prepaid, in the United States mail, and such notice shall be deemed to have been given when so deposited in such mail. The envelope or cover of the mailing shall include the name of the City and the return address of the City Clerk as the sender. The mailed notice shall be given to all owners of property proposed to be assessed within the Assessment District as shown in the Engineer’s Report by such mailing by name to those persons whose names and ¯ addresses appear on the last equalized assessment roll of the County of Santa Clara or the State Board of Equalization assessment roll, as the case may be. The amount of the proposed assessment for each parcel shall be calculated and the record owner of each parce! shall be given written notice by mail of the proposed assessment, the total amount thereof chargeable to the entire Assessment District, the amount chargeable to the owner’s particular parcel, the anticipated duration of payments for the assessment if bonded, the reason for such assessment and the basis upon which the amount of the proposed assessment was calculated.Each such mailed notice to owners shall contain a ballot which includes the property owner’s name, identification of’the parcel and. support or opposition to the proposed assessment. Each notice shall include, in a conspicuous place, a summary of the procedures applicable to the completion, return and tabulation of ballots, including a disclosure that the existence of a majority protest (whereby ballots submitted in opposition exceed those submitted in favor of the assessment, with ballots weighed according to proportional financial obligation of the affected property) will result in the assessment not being imposed. The notice herein provided shall be mailed not less than forty-five (45) days before the date of the public hearing ordered under Section 4 hereof. Each mailed ballot shall include a sealable return envelope with the City’s address for receipt of completed ballots. 6. Ballots. The City Clerk shall maintain a separate and secure file for the safekeeping of the assessment ballots as they are received and pending tabulation. Ballots shall be received up to the time of the closing of the public hearing. Ballots shall remain sealed until the close of the public hearing and the beginning of the tabulation, provided that ballots may be submitted, or changed, or withdrawn by the person submitting the ballot prior to the conclusion of the public hearing. The City Clerk is hereby designated as the impartial person responsible for the tabulation of the ballots. During and after tabulation, the ballots shall be disclosable public records under Section 6252 of the California Government Code. For purposes of the administration of the ballots, this Council hereby approves the Assessment Ballot Procedures for the Assessment District in the form on file with the City Clerk. 7. Boundary Map. The proposed boundaries of the proposed Assessment District are hereby described as shown on a map thereof on file in the office of the City Clerk (the "Boundary Map"), which indicates by a boundary line the extent of the territory to be included in the proposed Assessment District and which Boundary Map shall govern for all details for further purposes of the proceedings for the Assessment District and to which reference is hereby made for further particulars. The City Clerk is hereby authorized and directed to endorse upon the original and at least one copy of the Boundary Map the date of the filing thereof and date and adoption of this resolution and to cause a copy of the Boundary Map to be filed with the County Recorder.of the County of Santa Clara, in which all of the proposed Assessment District is located, within fifteen (15) days of the adoption of this resolution, but in no event later than fifteen (15) days before the date of the public hearing ordered under Section ¯ 4 hereof. The County Recorder shall endorse upon the Boundary Map the time and date of filing and shall fasten the same securelY in a book of maps of assessment and community facilities districts which the County Recorder shall keep in his or her office. The County Recorder shall index the. Boundary Map by the name of the City and by the distinctive designation of the proposed Assessment District. -3- 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.~?’~saleggio Bond Counsel City Manager Director of Public Works Director, Administrative Services Sr.Assistant City Attorney ATTACHMENT C Preliminary Engineer’s Report Proposed University Avenue Area Off-Street Parking, Assessment District Prepared for: City of Palo Alto Prepared by: Harris & Associates January 2001 City Of Palo Alto University Avenue Area Off-street Parking Assessment District Preliminary Engineer’s Report TABLE OF CONTENTS Assessment .......................................................................................pg. ] Engineer’s Cost Estimate ...............................................................Pg. 4 Method of Assessment General ............: ...........................................................................Pg. 5 Project Overview ..........................................................................Pg. 5 Benefit ........................................................................................Pg. 6 Considerations from Proposition 218 ...............................: ......Pg. 6 Special Benefit Analysis .................. .......................................Pg. 7 Apportionment Formula ................................................................Pg. 8 Method for Allocating Costs to the Assessment District.. ........Pg. 8 Method for.Allocating Costs within the Assessment District ...Pg. 8 Description of Improvements ............................................... ........Pg. 10 Boundary Map and Assessment Diagram ................................pg. ] ] Assessment Roll ......................................................................pg. ] ] Names and Addresses of Owners ..............................................pg. ] ] Plans and Specifications.,: ............................................ .......... .....Pg. 11 Annual Administrative Assessment ...........................................Pg. 11 ................................................................. -.... Pg. 12Certificates Appendices 1. 2. Detailed Construction Cost Estimates Assessment Roll 01115101 C:~Palo Alto Parking Structure\PERI TOe.doe City Of Palo Alto University Avenue Area Off-Street Parking Assessment District Preliminary Engineer’s Report 01115101 Page 1 ASSESSMENT WHEREAS, on ,2001, the City Council of the City of PaloAlto, County of Santa Clara, State of California, under the Municipal Improvement Act of 1913 (the Ac0 adopted its Resolution of Intention No. . The proceedings include financing for the acquisition and/or construction of the public improvements more particularly therein described, in and for the City’s Univ.ersity Avenue Area Off-Street Parking Assessment District (the "Assessment District"). WHEREAS, said Resolution directed the undersigned to make and file a report presenting: a) Maps and descriptions of the lands and easements to be acquired if any; b)Plans and specifications of the.proposed improvements if the improvements are not already installed, including the class and types of improvements for each zone of the Assessment District, if these zones exist; c) d) e) A general description of the works or appliances already installed and any other property necessary or convenient for the operation of the improvements, if the works, appliances or property are to be acquired as part of the improvements; An estimate of the cost of the improvements and the cost of lands, rights-of-way, easements and incidental expenses in connection with the improvements including any cost of registering bonds; A diagram showing, as they existed at the time of the passage of the Resolution of Intention, all of the following: 1.The exterior boundaries of the assessment district 2.The boundaries of any zone within the district 3.The lines and dimensions of each parcel of land within the district with each subdivision given a separate number upon the diagram; A proposed assessment of the total amount of the cost and expense of the proposed improvements upon the subdivisions of land in the district in proportion to the estimated benefits to be received by each subdivision respectively. The assessment shall refer to the subdivisions by their respective numbers; A proposed maximum annual assessment upon each of the subdivisions of land in the district to pay costs incurred by the City of Palo Alto and not otherwise reimbursed which result from the - administration and collection of assessments or from the administration or registration of any associated bonds and reserve or other related funds. The particulars of which are described in the Resolution, incorporated herein by reference; NOW, THEREFORE, the undersigned, by virtue of the power vested in me under said Act and the order of the City Council of the City of Palo Alto hereby make the following assessment to cover the portion of the estimated cost of said acquisitions, work and improvements, and the costs and expenses incidental thereto which specifically benefit the Assessment District and are to be paid by the Assessment District. C:Walo Alto Parking Strueturekpreliminary engineer’s report.doe City Of Pal0 Alto University Avenue Area Off-Street Parking Assessment District Preliminary Engineer’s Report 01115101 Page 2 The amount to be paid for said acquisitions, work and improvements, and the expenses incidental thereto, is generally as follows: SUMMARY COST ESTIMATE Project Construction & Acquisitions Contributions Total Cost for Assessment District Incidental Costs Bond Costs Balance To Assessment (1) As Preliminarily Approved $33,330,383 $0i $33,330,383 $6,876,335 $5,697,415 $45,904,133 (2) As Confirmed ,And Recorded (3) As Modified After Recordation I do hereby assess and apportion the Balance to Assessment of the Total Cost of said acquisitions, work and improvements upon the several lots, pieces or parcels or portions of lots or subdivisions of land specifically benefited thereby, and liable therefor, severally and respectively, in accordance with the special benefits to be received by such subdivisions, respectively, from the acquisitions and improvements. These piec, es, parcels or portion of lots or subdivisions of land are hereinafter numbered to correspond with the numbers upon the attached Assessment Diagram. The portions of land and apportioned assessments are more particularly set forth in Appendix 2 attached herein, and incorporated by reference. In addition, an annual assessment for costs incurred by the City of Palo Alto and not otherwise reimbursed for administration and collection of assessment of bonds shall be levied in a maximum annual amount of twenty-five dollars ($25.00) per individual assessment parcel per year. Said maximum annual administrative assessment shall increase each year bythe change in the Consumer Price Index (CPI), during the preceding year ending in January, for All Urban Consumers for the San Francisco Bay area. As required by said Act, an Assessment Diagram is hereto attached showing the Assessment District and also the boundaries and dimensions of the respective subdivisions of land within said Assessment District as the same existed at the time of the passage of said Resolution, each of which subdivisions having been given a separate number upon. said Diagram. Said assessment is made upon the several subdivisions of land within said Assessment District in proportion to the estimated special benefits to be received by said subdivisions, respectively, from said improvement. The diagram and assessment numbers appearing herein are the diagram numbers appearing on said diagram, to which reference is hereby made for a more particular description of said property. Each subdivision of land assessed is described in the Assessment Roll by reference to its parcel number as shown on the Assessor’s Maps of the County of Santa Clara for the Fiscal Year 2000-2001 and includes all of such parcel excepting those portions thereof within existing public roads or right of way " to be acquired in these proceedings for public road purposes. For a more particular description of said C:LPalo Alto Parking Stmcture~preliminary engineer’s repor~.doc ~ ~ City Of Palo Alto University Avenue Area Off-Street Parking Assessment District Preliminary Eng!neer’s Report 0111510t Page 3 property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of said County. Notice is hereby given that serial and/or term improvement bonds tO represent unpaid assessments and bear interest at the rate of not to exceed twelve percent (12%) per annum, or such higher rate of interest as may be authorized by applicable law at the time of sale of such bonds, will be issued hereunder in the manner provided under the Improvement Bond Act of 1915 and the last installment of such bonds shall mature not to exceed twenty-nine (29) years from the second day of September next succeeding twelve (12) months from their date. Under the Resolution of Intention, the requirement of Division 4 of the Caiifomia Streets and Highway Code shall be satisfied with Part 7.5 of said Division 4, for which the following is presented: The total amount, as near as Can be determined, of the total principal amount of all unpaid special assessment and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than contemplated in the instant proceeding is: $ 3,835,000 2.The total amount of the principal.sum of the special assessment (the "Balance of Assessment") proposed to be levied in the instant, proceedings is: $ 45,904,133 The total amount of the principal sum of unpaid special assessment levied against the parcels proposed to be assessed, as computed pursuant to paragraph 1, above, plus the principal amount of the special assessment proposed to be levied in the instant proceedings from paragraph 2, above is : $ 49,739,133 o The total true value, as near as may be determined, of the parcel of land and improvements which are proposed to be assessed in the instant proceedings, as .determined by the full cash value of the parcels as shown upon the last equalized assessment roll of the County of Santa Clara is: $ 444,654,665 5.The ratio of total true value, as near as may be determined to the total amount of the principal sum of unpaid special assessments is: 8,9 to 1 Dated:,2001 By: HARRIS & ASSOCIATES Engineer of Work Mary Grace Pawson RCE 044573 CAPalo Alto Parking Strueture~preliminary engineer’s report.doe City Of Palo Alto University Avenue Area Off-Street Parking Assessment District Preliminary Engineer’s Report 01115101 Page 4 ENGINEER’S COST ESTIMATE The proposed project costs are set forth below. The costs are presented assuming that the City will issue two series of assessment bonds. Series 1 will acquire existing assessments and finance ongoing design and administrative activities. Series 2 will finance construction. Appendix 1 includes a more detailed presentation of the cost estimates prepared for the two parking structures. Description Series 1 Bond Issue Construction and IncldentalCosts Refinance Outstanding Assessment Bonds Planning, Design & Construction Managemenl Right -of-W a y ¯ Assessment District Costs Contingency Financing Costs Balance to Assessment Series U n.de rwrite r’s Discount Bond Reserve Rating Agency Fees Capitalized Interest Cost of Issuance Series 2 Bond Issue Construction and Incidental Costs Lot R Construction Lot R Estimating Contingency Lot R General Conditions Lot, R Escalation Lot R Contigenciss Lot S/L Construction Lot S/L Estimating Contingency Lot S/L General Conditions Lot S/L Escalation Lot S/L Contigencies Assessment District Costs Financing Costs U nderwrite r°s Discount Bond Reserve Rating Agency Fees Capitalized Interest Cost of Issuance Balance to Assessment Series 2 Total Balance to Assessment Preliminary Costs $2,217,080 $5,563,615 $185,000 $238,000 $102,000 $141,300 $671,000 $25,OOO $161,040 $115,965 $9,420,000 $6,846,000 $821,520 $613,402 $621,069 $890,!99 14,906,200 $1-,788,744 $1,335,596 $1,352,290 $1,938,283 $787,720 $547,200 $2,765,74O $50,000 $1,200,170 $20,000 $36,484,133 $45,904,133 Confirmed Costs C:~Palo Alto Parking Strueture~preliminary engineer’s report.doe City Of Palo Alto University Avenue Area Off-Street Parking Assessment District Preliminary Engineer’s Report 01 I15101 Page 5 METHOD OF ASSESSMENT GENERAL The Assessment District is formed under the authority of the Municipal Improvement Act of 1913 (the Ac0 and Article XIIID of the Califomia State Constitution, and in accordance with the Proposition 218 Omnibus Implementation Act (chapt. 28, 1997 stats.) as supplemented by the provisions of Section 13.12.050 of the Palo Alto Improvement Procedure Code, which require that local agencies levy ¯ assessments based on the special benefits provided by the project. In addition, Article XIIID, Section 4, of the State Constitution requires that a parcel’s assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Section 4 provides that only special benefits are assessable and the local agent3’ levying the assessment must separate the general benefits from the special benefits. It also requires that publicly owned property that benefits from the improvements be assessed. Neither the Act nor the State Constitution specifies the method or formula that should be used to apportion the costs to properties in any special assessment district proceedings. The responsibility for recommending an apportionment of the costs to properties which specially benefit from the improvements rests with the Assessment Engineer, who is appointed for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. Therefore, costs and expenses of proposed improvement(s) will be apportioned against the properties by a formula or method that proportionally and equitably distributes the costs in direct proportion to the estimated special benefits these parcels receive from the improvements. The approval of the assessments rests with the City Council. The Council renders its decision after hearing testimony and evidence presented at a public hearing and tabulating:the assessment ballots which are mailed to all record owners of property within the Assessment District. Only ballots delivered to the City prior to the close of the public hearing are tabulated. The Council’s findings must include whether or not the assessment spread has been made in direct proportion to the estimated special benefits received by each parcel. Assessment ballots are weighted by the amount of the assessment. The ballot tabulation is finalized after the close of the Public Hearing. If fifty percent or more of the weighted assessment ballots submitted favor the levy of the assessments, then the Council may proceed. If the majority of the weighted ballots (more than 50%) oppose the levy of assessment, then the proceedings must be abandoned. PROJECT OVERVIEW The University Avenue Area is a diverse mixed-use area with a combination of offices, retail establishments, restaurants, civic facilities and some higher density residences. The goal of both the City and the property owners in the area has been to "promote the economic health of Downtown, encourage retail vitality and variety and increase potential for a variety of uses", i 1 Downtown Report - A Summa _ry, January 1988, City of Palo Alt0 C:~Palo Alto Parking Strueture~preliminary engineer’s report.doe City Of Palo Alto University Avenue Area Off-Street Parking Assessment District Preliminary Engineer’s Report 01115101 Page 6 The zoning designations within the University Avenue area are Commercial Downtown ("CD"). The CD district is intended to: ¯ :.Control amount and size of development ¯ :.Preserve and promote ground floor retail uses ¯ :.Enhance pedestrian activity ¯ :.Create harmonious transitions to residential neighborhoods .:.Assist in the preservation of historic buildings2 The University Avenue Par’king Assessment District was established in 1975 with the goal of providing safe, convenient parking. Since its inception, the University Avenue Parking Assessment District has acquired 20 lots and constructed 2 parking garages. The Parking Assessment District has worked to create a downtown parking "system" with a variety of parking opportunities. The parking system supports an area where visitors perform multiple tasks (dine, shop, run errands) and are able to walk easily between various business establishments. In 1994, the City in cooperation with downtown property owners and the Chamber of Commerce, brought forward a "Comprehensive Parking Plan for Downtown" (the "Comprehensive Plan). The Comprehensive Plan identified and addressed a deficit of parking in the Downtown area. The Plan recommended the construction of new parking facilities. The City has been working since 1994 to develop plans for construction of new parking garages on surface lots S and L, near the center of downtown and surface lot R, on the southwesterly side of downtown. Together, the new garages will add approximately 700 new parking spaces to the downtown system. The S/L Garage consists of seven levels, two below grade and five above grade, and incorporates space, not Suitable for parking and reserved for future private or public use, within the design. The R Garage includes five levels all above grade and the structure is completely devoted to parking..To date the City has completed planning, environmental documentation and 50-percent design on two new garages. This assessment district is proposed to generate over $45 million of funding for the construction of the new garages and refinancing of existing assessment bonds at more favorable rates and terms. BENEFIT Considerations from Proposition 218 In November 1996, the voters of Califomia approved Proposition 218, which added Articles XIIIC and XIIID to the California State Constitution. Proposition 218 added new procedures and requirements for all assessments. Particularly, Proposition 218 requires the following: The assessment proceedings must identify all parcels which will have special benefit conferred upon them, including property owned by Federal, State or Local government agencies. "Special benefit" means "particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large." General enhancement 2 Downtown Report - A Summary_ C:~Palo Alto Parking Structure~preliminary engineer’s report.doe City Of Palo Alto University Avenue Area Off-Street Parking Assessment District Preliminary Engineer’s Report 01115101 Page 7 of property value is not considered to be a "special benefit." The assessment on a parcel may not exceed the reasonable cost of the proportional special benefit conferred on the parcel. The improvements proposed for the Assessment District must meet the special benefit test of Proposition 218. Additionally, the assessment on each parcel must not exceed the cost of the proportional special benefit conferred on the parcel. Special Benefit Analysis Definition of "Special Benefit": A property benefits from the parking system when the availability of that system helps offset requirements imposed by the City through its planning or zoning process. This benefit is most clearly illustrated by a commercially zoned property with no onsite parking: development and use of the property would be prohibited by current planning and zoning criteria if an alternate parking system were not available. In these cases, the downtown parking system is integral tO the highest and best use of property within that system. History of the Benefit Area: The University Avenue Area (also referred to as the "Downtown Area") received increasing City attention in the mid-1980s. The 1984:1986 Downtown Study addressed the increased parking and traffic problems resulting in part from a surge in Downtown office building construction) The Study responded to a period of rapid commercial growth that resulted in increased parking and traffic problems and raised the issue of the compatibility of new downtown construction with existing development.4 The study resulted in new parking regulations in the University Avenue Parking Assessment District as part of a comprehensive effort to assure reasonable commercial development and employment centers within the downtown area.~ Area of Benefit: The existing university Avenue Parking Assessment District is the area of benefit; properties within this area receive special consideration under City parking regulations.6 Specifically, the parking facilities specially benefit commercial properties and employment centers within the downtown as a result of the comprehensive planning and zoning work undertaken after the 1984-1986 Downtown Study.7 This study.focused on mitigating growth and traffic impacts. However it acknowledged the importance of retail vitality and economic health for the commercial segment) The Downtown Study includes a "Twelve Point Public Parking Program" which specifically focuses on working with employers to implement program goals.9 " The South of Forest Area (SOFA) is relatively close to some of the parking facilities in the University Avenue Assessment District system including Lots E and G and Civic Center Garage. However properties within the SOFA’are not given unique treatment within the Zoning Downtown Report, A Summary, January 1998 page 1. Ibid, page 5 Ibid, page 1. Palo Alto Municipal Code Sections 18.83 et. seq. Downtown Report, A Summary, January 1988. Ibid, page 8-9. Ibid, Appendix A. CAPalo Alto Parking 8tructure~preliminary engineer’s report.doe City Of Palo Alto University Avenue Area Off-Street Parking Assessment District Preliminary Engineer’s Report o11151Ol Page 8 Code. Parking provided by University Avenue Facilities may not be used to offset parking requirements for properties in the SOFA; hence this area does not receive special benefit from the proposed parking garages. Facilities providing "Special Benefit": The proposed R Garage provides only special benefit. This structure, when constructed, will be utilized solely to meet parking requirements and demands in the University Avenue Assessment District. The lot may not be used by other property in the City to offset parking requirements. All costs and f~icilities associated with the R Garage are intended solely to provide additional parking for the University Avenue Parking Assessment District in accordance with the City’s design requirements and Mitigation Measures adopted for the project under the California Environmental Quality Act. The proposed S/L Garage also provides special benefit because it also includes parking spaces that will be utilized solely to meet the demands and requirements of the University Avenue Assessment District. All costs and facilities associated with parking at the S/L Garage are intended to provide additional parking for the University Avenue Parking Assessment District in accordance with the City’s design requirements and Mitigation Measures adopted for the project under the Califomia Environmental Quality Act. Costs and facilities that are incorporated within the S/L Garage but that do not provide parking, do not provide special benefit. Facilities Providing "General Benefit": The design of the S/L Garage includes a space dedicated for future commercial or public use. These facilities can be logically incorporated within the design on the site because of site geometry and setback requirements. This logical architecturaland engineering design provides for construction economies. However, these facilities do not provide parking, hence they do not specially benefit the property within the Assessment District. The cost of constructing these general benefit facilities is not an eligible cost within the Assessment District. Any and all costs associated with this general benefit space will be paid by the City of Palo Alto, either as a contribution to reimburse the Assessment District or through a separate funding source. APPORTIONMENT FORMULA Method for Allocating Costs to the Assessment District The costs for the P-, Garage will be fully allocated t° the Assessment District. The costs associated with the S/L Garage will be fully allocated to the Assessment District. The planning, design, construction management, administrative or construction costs of the non-parking space attached to the S/L Garage will not be allocated to the Assessment Distract and are not included in this report. Method for Allocating Costs within the Assessment District The City currently utilizes a blended rate of 1 parking space for 250 square feet of developed floor area (frequently expressed as 1/250 or 4/1000) to calculate parking demand within the Assessment District. The blended-rate is justified based on the mixed-use nature of the area. Many visitors park and walk to a variety of establishments within the area and City policy encourages this type of activity. C:Walo Alto Parking Strueture~preliminary engineer’s report.doe City Of Palo Alto University Avenue Area Off-Street Parking Assessment District Preliminary Engineer’s Report 01115i01 Page 9 Basis of Benefit: Special benefit is provided to commercial properties and significant employers within the parking assessment district, because the availability of parking throughout the district allows these properties to comply with City regulations. Without adequate parking, property cannot develop or change use. Compliance with City regulations is a special and unique benefit afforded to those properties within the Assessment District and not available to those properties outside of the District. Residential property within the Downtown Area does not receive special benefit from the parking facilities. The parking demand associated with residential property is very low, compared to commercial enterprises and parking is provided onsite. The Downtown Area also includes three churches. The churches are not large employers nor do they draw traffic and parking to the Downtown Area during business hours. A survey of the three churches indicates that their primary hours of operation are limited to Sunday mornings and Wednesday evenings. This type of use is not the focus of the parking program and does not represent a significant portion of the lhnd use within the downtown area. Because of their unique use and hours of operation, these existing churches also do not contribute to the parking deficit downtown and will not receive special benefit from new parking facilities. Quantification of Benefit: The City, through its Parking Ordinance1° has established a variety of parking standards for different types of commercial and industrial land uses. These range from requirements as high as 1 space per 150 square feet to as low as 1 space per 400 square feet. The 1/250 standard represents an "average" demand, between the two extremes. Based on this information, and the City’s long history in the University Avenue Area, a Parking Benefit Unit of four spaces per 1000 square feet is reasonable. In some cases, properties located in the University Avenue Area provide parking on site. Properties with on-site parking with have their Parcel Benefit calculation adjusted to give appropriate credit for on-site parking provided the parking spaces provided meet the design criteria outlined in the City’s Municipal Code. The benefit formula can be mathematically expressed below: For Residential Properties: Parcel Benefit (in PBU)= 0 For existing Churches that do not ordinarily place large parking demands during peak business hours: Parcel Benefit (in PBU) = 0 For Existing University Avenue Parking Facilities: Parcel Benefit (in PBU) =0 For All other Parcels: Parcel Benefit (in PBU)11 : (Enclosed square footage on a Parcel) x (4 PBU/1,000sf) -(onsite parking provided) Assessment Rate (in $/PBU) = (Project Cost)/(Total PBU in District) Parcel Assessment = Assessment Rate x Parcel Benefit ~°Palo Alto Municipal Code Section 18.83 et. seq. ~ "PBU" = Parcel Benefit Unit CAPalo Alto Parking Stmcture~preliminary engineer’s report.doc City Of Palo Alto University Avenue Area Off-Street Parking Assessment District Preliminary Engineer’s Report 01115101 Page 10 DESCRIPTION OF IMPROVEMENTS Within the City of Palo Alto, (the "City") County of Santa Clara, State of Califomia, the construction and acquisition of the following public vehicle off-street parking improvements, including the acquisition of all lands, easements, rights-of-way, licenses, franchises, permits and any outstanding assessments, the removal of all existing improvements and the construction of all auxiliary work .necessary and/or convenient tothe accomplishment thereof in accordance with plans and specifications to be approved by the City: 1.The Site SiL Garage to be constructed on a site of approximately 40,400 square feet located in the block bounded by Bryant Street, Lytton Avenue, Florence Avenue and University Avenue and consisting of a reinforced concrete structure of se~en levels (five above-ground and two below ground levels) with approximately 692 parking spaces and approximately 8,100 square feet of non-parking space, but excluding any portion of such structure to be used for other than vehicle parking or related uses. The Site R-Garage to be constructed on a site of approximately 25,200 square feet located in the block bounded by Alma Street, High Street, University Avenue and Hamilton Avenue and consisting of a reinforced concrete parking structure of five parking levels (all above ground) with approximately 228 parking spaces. The foregoing shall include restrooms, bicycle racks and lockers, elevators, stairs, electric vehicle charging hook-ups, landscaping and architectural treatments. CAPalo Alto Parking Strueture~preliminary engineer’s report.doe City Of Palo Alto University Avenue Area Off-Street Parking Assessment District Preliminary Engineer’s Report 01115101 Page 11 BOUNDARY MAP AND ASSESSMENT DIAGRAM A reduced copy of the Boundary Map and Assessment Diagram are attached hereto. Full-sized copies of the Boundary Map and Assessment Diagram are on file in the Office of the City Clerk, of the City of Pale Alto. As required by the Act, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Appendix 2. Reference is hereby made to the Assessor’s Parcel Maps of the County of Santa Clara for the boundaries and dimensions of each parcel of land. ASSESSMENT ROLL The Assessment Roll includes an Assessment Number, the Assessor’s Parcel Number, and Names and Addresses of the Property Owners as found on the secured Assessment Roll of the County of Santa Clara dated August 2000. The Assessment Roll shows the proposed Assessment for each property within the proposed Assessment District. The Act requires that the Assessment Roll be included in the Engineer’s Report. The Assessment Roll is included as Appendix 2. Assessment Ballots and Notices of the Public Heating will be mailed to the property owners shown. PLANS AND SPECIFICATIONS Reference is hereby made to the Plans and Specifications in and for said assessment proceedings on file in the office of the City Clerk of the City of Pale Alto, County of Santa Clara. The Plans and Specifications are by reference included with this Engineer’s Report. ANNUAL ADMINISTRATIVE ASSESSMENT An annual administrative .assessment shall be levied on each parcel of land or subdivision of land within the Assessment District. The administrative assessment will pay for necessary costs and expenses incurred by the City of Pale Alto, and not otherwise reimbursed, resulting from the administration and collection of assessments and/or from the administration or registration of any bonds and reserve or other related funds. This maximum assessment hereinafter set forth is authorized pursuant to the provisions of Section 10204(0 of the Streets and Highways Code and the said maximum annual assessment shall not exceed twenty- five dollars ($25) per individual assessment parcel per year. Said " makimum annual administrative assessment shall increase each year by the change in the Consumer Price Index (CPI), during the. preceding year ending in January, for All Urban Consumers for the San Francisco Bay area. The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the works of improvement. C:Walo Alto Parking Structure~preliminary engineer’s report.doe ’Is 1 GP.APHIC SCALE REF’E’RE~ICE IS HEREBY M~M)E TO "g’lE MAPS OF RECORD IN THE OFFICE OF THE ASSESSOR OF THE COUN/Y OF SAI4TA CLARA FOR A DETAILED DESCRIPTION OF THE UNES AND DIMENSIONS OF AN~t-PA=RCELS SHOWN HEREIN. WHICH ~ SF~U. GOVERN FOR ALLDETAILS CONCERNING THE UNES A~D DIMF_NSIONS OF SUCH ~’AR~E].S. ASSESSMENT DISTRICT BOUNDARIES PROPOSED BOUNDARIES OF UNIVERSITY AVENUE AREA OFF-STREET PARKING ASSESSMENT DISTRICT CITY OF PALO ALTO, COUNTY OF SANTA CLARA STATE OF CAI-i=ORNIA LOCATION MAP NOTTO SCALE 1.RLED IN THE OFF’ICE OF THE crw CLERK OF THE CITY OF PALO ALTO THIS__DAY OF 2001. CITY CLERK 2,l HEREBY CERTIFY THAT THE MAP SHOWING PROPOSED BOUNDARIES OF THE UNNERSFTY AVENUE AREA OFF-STREET PARKING ASSESSMENT DISTRICT, CiTY OF PALO ALTO, COUNTY OF SANTA C~WAS APPROVED BY THE CFTY COUNCIL OF THE CI’fY OF PALO ALTO, AT A REGULAR METTING THEREOF, HELD ON THE~_DAYOF__~2OO1 BY Frs RESOLUTION NO. CITY CLERK 3.RLED THIS_ DAY OF ___ ~.001, AT THE HOUR OF~ O’CLOCK __M, IN BOOK~ OF" MAPS OF ASSESSMENTS AND COMMUNITY FACIUT1ES DISTRICTS AT PAGE IN THE OFFICE OF THE COUNTY RECORDER, I" I-~I--TF’IECOUNTY OF SANTA CLARA, STATE OF CALIFORNIA. COUNW RECORDER COUN1Y SANTA CLARA DATE Hlnls & Alsodalos JAN. 2, 2001 i SHEET 1 OF 1 Q:.\PA~O~.TO~ D~,6RA~4~ PAM~m I _L~-" LEGEND: 136-011-022 SHEET 2 I I I I 1 SHEET 3 ! I J GRAPHIC SC .ad.~ ASSESSMENT DISTRICT BOUNDARIES ASSESSOR’S PARCEL NUMBER (APN) LOT UNE (PER ASSESSORS PARCEL MAP) ASSESSMENT NUMBER ASSESSMENT DIAGRAM FOR UNIVERSITY AVENUE AREA OFF-STREET PARKING ASSESSMENT CITY OF PALO ALTO, COUNTY OF SANTA CLARA STATE OF CAUFORNIA ( ]~ ~"t ) t baob.=, 200 ft. REFERENCE IS HEREBY MADE TO IHE MAPS OF RECORD IN l~lEOFFICE OF THE ASSESSOR OF THE COUNTY OF SANTA CLARA FOR A1.0ET~LED DESCRIPTION OF THE LINES ANO DIMENSIONS OF ANypARCELS SHOWN HERE]N, WHICH M~S SH~LL GOV~ FOR =ALL 0~-3"~JLS CONCERNING 11~E UNES AND OIMENSIONS OF SUCH PN~ELS. RIGHTS OF WAY AND EASEMENTS TO I~ ACQUIRED FOR THE -" iMPROVEMENTS TO BI~ M/~E FOR THIS ASSESSMENT DISTRICT ~2. NOT BE SUBJECT TO I~IE UEN OF ASSESSMI’3~ITS LEVIED ON ASSESSOR’S P~RCELS SHOWN ON THIS DL~GR~, DISTRICT LOCATION MAP/ NOT TO SC~.E 1.RLED IN "(HE OFRCE OF THE CITY CLERK OF THE CITY OF PALO ALTO THIS~ DAY OF~ 2001. crw CLERK 2.RECORDED IN THE OFRCE OF THE SUPERINTENDENTOF STREETS, CITY OF PALO ALTO, THIS~ DAY OF.~., 2001. SUPERINTENDENT OF STREETS CRY’ OF PALO ALTO AN ASSESSMENT WAS "LEVIED BY THE CI~Y COUNCIL ON THE LOTS, PIECES AND PARCELS OF LAND SHOWN ON THIS ASSESSMENT DIAGRAM. SAID ASSESSMENT WAS LEVIED ON THE ~ DAY OF~ , 2001. REFERENCE IS MADE TO THE ASSESSMENT ROLL RECORDED IN THE OFRCE OF THE SUPERINTENDENT OF STREETS FOR THE EXACT AMOUNT OF EACH ASSESSMENT LEVIED AGAINST THE PARCELS SHOWN ON THIS ASSESSMENT DIAGRAM. crw CLERK 4.RLED THIS~DAY 0F~2001, AT THE HOUR OF~ O’CLOCK __M, IN BOOK ~ OF MAPS OF ASSESSMENTS AND COMMUNITY FACILITIES DISTRICTS AT PAGE IN THE OFFICE OF THE COUNTY RECORDER, INTHE COUNTY OF SANTA CLARA, STATE OF CAUFORNI~ COUNTY RECORDER COUNTY SANTA CIJ~RA DATE JAN. 2, 2001 SHEET I._.]__OF4- MATCH UNE RF-~E IS HEREBY M~E TO THE M/~PS OF RECORD IN THE OF’F~E OF THE A.~ESSOR OF THE COUNTY OF SANTA CLARA FOR A DETAILED OESCRIPIION OF THE UNE5 AND DIMENSIONS OF ANY P/~ELS SHOWN HEREIN, WHICH MAPS SHALL GOVERN FOR ALL DETAILS CONCERNING THE UNES AND OlMF..NSIONS OF SUCH PARCELS. 2.RIGHI~ OF WAY AND EASEMENTS TO BE ACQUIRED FOR IHEIMPROVEMENTS TO BE MN)E FOR THIS ASSESSMENT DISTRICT SHALLNOT BE SUBJECT TO THE UEN OF ASSESSMENTS LEVIED ONASSESSOR’S PARCELS SHOWN ON THIS DIAGRAM. ALMA STREET SEE SHEET ALMA STREET ALMA STREET iiiiiiminiii~Iin~IIInI--InIInIIIIInIIIIII GRAPHIC SCALE UNIVERSITY ASSESSMENT DIAGRAM FOR AVENUE AREA OFF-STREET PARKING ASSESSMENT CITY OF PALO ALTO, COUNTY OF SANTA CLARA STATE OF CALFORNIA DISTRICT DATE JAN. 2, 2001 SHEET 2 OF 4. MATCH UNE SEE SHEET 4. GRAPHIC SCALE 1.REF’~ENCE IS HEREBY I~E TO THE MAPS OF RECORD IN THE OFR~[ OF THE ASSESSOR OF THE COUNIY OF SANTACLARA FOR A DETAILED OESCRIPIION OF THE UNES ANO DIMENSIONSOF ANY P&RCEI.S SHOWN HEREIN, WHICH kl~ SHALL GOVERN FOR ALL DE’FNLS CONCERNING THE UNES /~10 DIMENSIONS OF SUCH P~CEL~I 2.RIGHTS OF WAY AND EASEMENTS TO BE ACQUIRED FOR THEIMPROVEM~ITS TO BE MADE FORTHIS ASS[SSMENT DISTRICT NOT ~ SU~ECT TO ~E U~ OF ~SE~M~~EO ON ~E~OR’S PARCE~ SHOWN ON ~IS O~, ASSESSMENT DIAGRAM FOR UNIVERSITY AVENUE AREA OFF-STREET PARKING ASSESSMENT CITY OF PALO ALTO, COUNTY OF SANTA CLARA STATE OF CALFORNIA DISTRICT I bob - lOG ft. NIl & MIldlllI OATIZ JAN. 2, 2001 I SHEET OF3 1.RET’ERE3HCE iS HE]~BY MAOE: TO "11!E MAPS OF RECORO IN THE~OFI~LEDE OF THE ASSESSOR OF 1q-IF COUNTY OF SANTA CI.N~A FOR A OESCRIPllON OF THE UNI:~ ANO DIMI~ISION5OF ANY P~ELS SHOWN HEREIN,WHICH MAPS SHALL GOVF-RN FOR AU. DETAILS CONCERNING I~IE UN£S AND OIMF.NSIONS OF SUCH PARCELS, WEBSTER STREET MATCH UNE ’ !1 I I SEE SHEET 3 ASSESSMENT DIAGRAM FOR UNIVERSITY AVENUE AREA OFF-STREET PARKING ASSESSMENT DISTRICT CITY OF PALO AI.TO, COUNTY OF SANTA CLARA STATE OF CALi=ORNIA GRAPHIC SCALE 1 ia~d~- 100 R. DATE JAN. 2, 2001 4. OF 4SHEET City Of Palo Alto University Avenue Area Off-Street Parking Assessment District Preliminary Engineer’s Report 01115101 Page 12 CERTIFICATES I, the City Clerk of the City of Palo Alto, County of Santa Clara, State of California, hereby certify that the Assessment and Assessment Roll in this Engineer’s Report, in the amounts set forth in Columns (1) of each, with the Assessment Diagram attached, was filed with me on ,2001. Donna J. Rogers City Clerk City of Palo Alto I, have prepared this Engineer’s Report and do hereby certify that the amounts set forth in Column (2) under Summary Cost Estimate, hereof-entitled Assessment, and the individual amounts in Column (2) of the Assessment Roll, herein, have been computed by me in accordance with the order of the City Council of the City of Palo Alto, County Santa Clara, adopted on ,2001. Mary Grace Pawson P.E. Engineer of Work I, the City Clerk of the City of Palo Alto, County of Santa Clara, State of California, hereby certify that the Assessment in this Engineer’s Report, in the amounts set forth in Column (2) was approved and confirmed by the City Council of the City of Palo Alto on ,2001, by Resolution No. Donna J. Rogers City Clerk City of Palo Alto I, the Director of Public Works ofihe City of Palo Alto, County of Santa Clara, State of California, hereby certify that the Assessment in this Engineer’s Report, together with the Assessment Diagram thereto attached, was recorded in my office on ,2001 Glenn S. Roberts P.E. Director of Public Works/Superintendent of Streets City of Palo Alto C:Walo Alto Parking Structure~preliminary engineer’s report.doe Palo Alto -Parking Structures Cost Estimate Description SERIES I BOND ISSUE Construction & Acquisition Costs Refinance Outstanding Assessment Bonds Outstanding Bond Amount Debt Service and Bond Reserve Funds Subtotal Construction & Acquisition Costs Incidentals Planning Costs Design & Construction Management City Management & Adminstrat~on Right-of-way (Appraisals/Legal/Easements) Printing, Advertising, Notices, etc. Filing Fees Bond Counsel Financial Advisor, Assessment Engineering Incidental Contin~lenc~/ Total Incidental Expenses: Bond Costs Underwriter’s Discount Bond Reserve Capitalized Interest Bond Insurance Rating Agency Fees Official Statement Printin9, Registration and Servicing Preliminary Costs $3,479,440 -$1,262,360 $5,615 $4,800,000 $758,000 $185,000 $2,500 $2,500, $90,000 $75,000 $68,000 $102,000 $141,300 $671,000 $161,040 $95,965 $25,000 $5,000 $15,000 Confirmed Costs Line Item Subtotals $2,217,08( $6,088,615 Total Bond Costs:$1,114,306 BALANCE TO ASSESSMENT SERIES 1 $9,420,000 SERIES 2 BOND ISSUE Construction & Acquisition Costs S/L GARAGE - Construction General Requirements & Permits Excavation and Foundations Structural Frame Roofing and Waterproofing Exterior Walls Interior Construction Special Requirements Vertical Transportation Mechanical Electrical Sitework Estimating Contingencies (12%) General Conditions Fee (8%) Escalation to Start of Construction (7.5%) Change Order Contingency (10%) Subtotal S/L Garage $1,021,000 $3,133,000 $4,959,000 $47,000 $2,194,000 $433,000 $23O,000 $407,000 $843,000 $1,038,000 $601,200 Subtotal $14,906,200 $1,788,744 $1,335,596 $1,352,290 $1,938,283 $21,321,113 Description Preliminary Costs R GARAGE - Construction General Requirments & Permits Excavations and Foundations Structural Frame Roofing and Waterproofing Exterior Wall Interior Construction Special Requirements Vertical Transportation Mechanical Electrical Sitework Subt~>tal Estimating Contingencies (12%) General Conditions Fee (8%) Escalation to Start of Construction (7.5%) Change Order Contingency (10%) Subtotal R Garage Incidentals Printing, Adver’dsing, Notices, etc. Right-of-way Acquisition (Lot SIL) iFiling Fees " Bond Counsel Financial Advisor Assessment Engineering Incidental Contingency/ Total Incidental Expenses: Bond Costs Underwriter’s Discount Bond Reserve Capitalized Interest Rating Agency Fees Official Statement Printing, Registration and Servicing Total Bond Costs: BALANCE TO ASSESSMENT SERIES 2 TOTAL BALANCE TO ASSESSMENT $550,000 $850,000 $2,048,000 $13,000 $1,883,000 $184,000 $146,000 $120,000 $27O,OOO $414,000 $368,OOO $6,846,O00 $821,52O $613,402 $621,069 $890,199 $2;500 $527,000 $2,500 $165,500 $75,000, $10,000 $5,220 $547,200 $2,765,740 $1,200,170 $50,000 $5,000 $15,000 Confirmed Costs Line Item Subtotals $9,792,190 $787,720 $4,583,110 I $36,484,133 $45,904,133 Appendix 2 Assessment Roll 8888888888 8888888888 8888~88888 8888888888 8888888888 8888888888 8888888888 8888888888 8888888888 888~ 888888888~ ATTACHMENT DCity of Palo Alto University Avenue Area Off-Street Parking Assessment District Assessment Balloting Procedures Page 1 of 10 01 I15101 This document specifies the procedures that will be followed by the City of Palo Alto (the "City") in lhe day to day management of Assessment Ballots and the ultimate tabulation of those ballots for the proposed University Avenue Area Off-Street Parking Assessment District. In the absence of regulation or statute, these procedures will be the controlling authority for the Assessment District Balloting process. These procedures are supplemented by: set of "Frequently Asked Questions" "Special Request Log’.’ "Notice of Proposed New Assessments and Assessment Ballot" Form An "Owner’s Authorization" Form "Withdrawal of Assessment Ballot" Form "Replacement Assessment Ballot Request" Form "Proportional Assessment Ballot Request" Form "Replacement Ballot" Form This supplemental information is intended to be an integral part of the procedures. The "Owner’s Authorization" Form, "Withdrawal of Assessment Ballot" Form", "Replacement Assessment Ballot Request" Form" and "Proportional Assessment Ballot Request" Form are provided for the convenience of the property owners and staff. The City will consider any valid request from an owner as long as it is written, signed and includes enough information about the parcel to allow staff or the Assessment Engineer to address the request. If the owner neglects to provide essential information but provides his/her phone number, the Assessment Engineer will attempt to contact the owner by telephone, clarify the request and obtain the necessary information. However, the legal burden to complete any request or form correctly shall be on the property owner. 1. PROJECT TEAM AND CONTACTS The City Council has designated the City Clerk ("the Clerk") as the impartial conductor of the Assessment District Balloting Process. These procedures outline the support system that will be provided to the Clerk for the City’s Parking Assessment District Process. The following members of the project team will be deputized by the Clerk and will have the authority to handle assessment ballots on behalf of the Clerk. City Department of Public Works (DPW) Mike Nafziger Contact Point provided in Notice and Ballot materials Phone (650) 617-3103 Debra Jacobs Day-to-Day Coordinator Phone (650) 329-2482 CAPalo Alto Parking Structure\Balloting Proceedures and Forms\Final Proceedures.docFinal Proceedures.doc City of Palo Alto University Avenue Area Off-Street Parking Assessment District Assessment Balloting Procedures Page 2 of 10 01/15101 Assessment Engineer (Engineer) Mary Grace Pawson Phone (707) 766-6260 Fax (707) 766-6258 Pager (707) 435-4341 Patti Castaldo Phone (707) 766-6260 Fax (707) 766-6258 DPW and the Engineer will staff workshops to assist property owners on: < dates are currently beingfinalized> The Assessment Engineer will hold office hours at the Clerk’s office on: < dates are currently beingfinalized > 2. CRITICAL DUE DATES Ballots must be received by the close of the pubic testimony portion of the Public Hearing set for March 19, 2001. As a practical matter this means: Mailed Assessment Ballots. The City Clerk must receive all mailed Assessment Ballots by 5:00 p.m. on March 19, 2001, in order to ensure that the mailed Assessment Ballots are received prior to. the conclusion of the public input portion of the Public Hearing. DPW will check the City P.O. Box just before the close of business on March 19, 2001 and deliver any ballots collected to the Clerk prior to the start of the public hearing. In order to be counted, mailed ballots must reach the Clerk before 5:00 p.m. on March 19, 2001. Postmarks will not be accepted. Hand-delivered Assessment Ballots. Up until 5~00 p.m. on March 19, 2001 Assessment Ballots may be delivered in person to the City Clerk at 250 Hamilton Avenue, Palo Alto CA. After 5:00 p.m. on March 19, 2001, Assessment Ballots may be delivered in person at the Public Hearing, prior to the close of the public testimony portion. The Public Hearing is scheduled to be held in the City Council Chambers, 250 Hamilton Avenue Palo Alto CA at the City Council meeting of March 19, 2001, which will commence at 7:00 p.m. 3. DAY-TO-DAY PROCEDURES Receipt of Ballots The ballot package includes a return envelope. The return envelope is pre-addressed to the City’s special Post Office Box (P.O. Box 50309). CAPalo Alto Parking Structure\Balloting Proceedures and FormsWinal Proceedures.docFinal Proceedures.doc City of Palo Alto University Avenue Area Off-Street Parking Assessment District Assessment Balloting Procedures Page 3 of 10 01115/01 Ballots may also be hand delivered to the City Clerk’s office. So as not to confuse the workshops with the Public Hearing, ballots may notbe turned in at the workshops, so as not to confuse the workshops with the Public Hearing. If owners would like to deliver their ballots in person, staffwill direct them to the Clerk’s office. Location of Returned Ballots While DPW will be responsible for the day-to-day logging of the ballots, the ballots will be kept in the Clerk’s office during the balloting period. Staff from DPW or the Engineer will work in the Clerk’s office to assist her in day-to-day management of ballots and requests. The Clerk will bring the ballots to the Public Hearing. Confidentiality By law, the Assessment Ballots must be kept sealed until the close of the public testimony portion of the public hearing The return ballot envelope is clearly labeled "ASSESSMENT BALLOT DO NOT OPEN" and ,s color-coded. In the event that an owner wishes to hand-deliver a ballot, the ballot must be sealed in the return envelope provided by the City In case the Owner returns the ballot in an envelope other than the return envelope which was sent to the owner with the ballot, the Owner must write his/her Assessment Number (printed in the upper left-hand comer of the ballot) on the outside of the envelope, place the ballot in the envelope and seal the envelope prior to handing in the ballot. Valid Assessment Ballots The instructions for submitting a "valid" ballot are clearly printed on the ballot materials, and are also described in the Frequently Asked Questions, attached to these Procedures. The City can only accept the original Assessment Ballots that are provided to owners by the City. Faxes of ballots or e-mailed ballots cannot be accepted. The City must receive the ballots in sealed envelopes. Any ballot received by the City, which is not in a sealed envelope, will not be counted. Ballot Packages Returned as "Undeliverable" The names and addresses of the owners of real property within this district were obtained from the Santa Clara County Assessor’s equalized secured property tax assessment roll dated August 2000. Notices and Assessment Ballots were mailed to all affected property owners, as they were shown on the equalized secured property tax assessment roll. C:XPalo Alto Parking Structure\Balloting Proceedures and Forms\Final Proceedures.docFinal Proceedures.doc City of Palo Alto University Avenue Area Off-Street Parking Assessment District Assessment Balloting Procedures Page 4 of 10 01/15101 If a package is returned as undeliverable, DPW will contact the Engineer and give her the Assessment Number of the returned package. The Engineer will contact the County Assessor’s office to see if another address is available for that parcel (this could occur if a property has recently been sold or if escrow doses during the balloting period). If a new address is located~ the Engineer will prepare and mail a replacement ballot to the new owner and will coordinate with DPW (by telephone) to update the Special Request Log and ballot database. The "Undeliverable" ballot package will remain in the Clerk’s office as a separate part of the ballot file. Day-to-Day Logging of Assessment Ballots DPW will be responsible for logging the ballots retumed on a daily basis and will perform this work in the Clerk’s office. The Engineer will provide DPW and the Clerk with a Ballot Database..Each returned ballot will be logged-in, using the Assessment Number on the return envelope. DPW will also provide the day-to-day management of the Special Request Log. DPW will provide the Clerk with an updated log each time a ballot is Withdrawn and each time a Replacement or Proportional Ballot is issued. (Section 4 ’ Special Requests provides procedures for the withdrawal of ballots, replacement of ballots and other special owner requests) Logging of Assessment Ballots on the Day of the Public Hearing DPW, the Clerk and the Engineer will gather between 5:00 and 6:00 p.m. on the day of the Public Heating to log-in any ballots received through the mail or in person that day. 4. SPECIAL REQUESTS Withdrawal of Assessment Ballots After returning an Assessment Ballot to the City, the property owner may withdraw the Assessment Ballot, prior to the public testimony portion of the public hearing, by submitting a written request: ¯:. In person to the City Clerk at 250 Hamilton Avenue Palo Alto, CA ¯:. At the Public Hearing on the proposed Assessment District. Prior to the public hearing, DPW or the Engineer may assist the Clerk in managing withdrawn ballots as part of the day to day activities that occur in the Clerk’s office. CAPalo Alto Parking Structure\Balloting Proceedures and FormsWinal Proceedures.docFinal Proceedures.doc City of Palo Alto University Avenue Area Off-Street Parking Assessment District Assessment Balloting Procedures Page 5 of 10 01115101 Written requests will be entered in the "Special Request Log". Staff will update the Assessment Ballot database and write "Withdrawn" across the return envelope of the ballot in question. Upon commencement of the public hearing, when the complete ballot file will be in the Council Chambers, the Clerk will transmit all such written requests to the Engineer. The Engineer will note the ballot withdrawal in the log and assist the Clerk in completing the tabulation taking these requests into account. If an Assessment Ballot is withdrawn, the person withdrawing the Assessment Ballot may request a Replacement Assessment Ballot. The Clerk will retain all withdrawn Assessment Ballots and will clearly indicate on them that they have been withdrawn. Withdrawn ballots will be kept at the Clerk’s office as a separate part of the ballot file. Replacement Assessment Ballots If an Assessment Ballot is lost, destroyed, withdrawn or never received, the owner may request an official Replacement Assessment Ballot from the Clerk. DPW, the Engineer or the Clerk may issue a "Replacement Ballot Request" Form to the owner. Completed Forms or any other written request may be mailed, faxed or hand-delivered to the Clerk. Upon receipt of a written request for a Replacement Ballot, the Clerk will forward the request to DPW, who will: log in the request in the Special Request Log fill in the required information on the Replacement Assessment Ballot. The assessment number shall amended to include a letter indicating that this is a replacement ballot. For example, the first replacement ballot issued for Assessment Number 12 will be labeled 12-A, the second 12-B etc. ¯ :.update the Assessment Ballot Database to reflect the amended Assessment Number ¯:.retum the replacement ballot and notice, to the property owner ¯ :.return the written request, updated log, and updated database to the City Clerk. All written requests and Replacement Ballot Request Forms will be kept in the Clerk’s office as a separate part. of the Assessment Ballot File. Proportional Assessment Ballots (Multiple Owners) If the multiple owners of a parcel cannot agree on how to vote, any owner may request Proportional Assessment Ballots from the Clerk. DPW, the Engineer or the Clerk may issue a "Proportional Ballot Request" Form. The form outlines the information necessary to create proportional assessment ballots including the names and addresses of all owners and evidence (such as a property deed or partnership agreement that outlines the proportional rights of each owner) C:Walo Alto Parking Structure\Balloting Proceedures and Forms\Final Proceedures.docFinal Proceedures.doc City of Palo Alto University Avenue Area Off-Street Parking Assessment District Assessment Balloting Procedures Page 6 of 10 01115101 Completed Forms or any other written request may be mailed, faxed or hand-delivered to the Clerk Upon the receipt of a written request for a Proportional Ballot, the Clerk will forward the request to DPW, who will: ~. log in the request in the Special Request Log ¯ :. forward the Request and all supplemental information to the Assessment Engineer by fax. The Assessment Engineer will: ..:.Compute the proportional assessments ¯ :.fill in the required information on the Proportional Assessment Ballot. The assessment number shall amended to include a number indicating that this is a proportional assessment ballot. For example, a three way apportioning on Assessment Number 15 will result in Assessment numbers 15-1, 15-2 and 15-3. ¯ :-update the Assessment Ballot Database to reflect the amended. Assessment Numbers ¯ :.return the Proportional Assessment Ballot(s) to the appropriate property owner(s), together with the attached official notice ¯ :. return the written request, updated log and updated database to the Clerk ¯ :. return an updated log and database to DPW To ensure sufficient time to notify each owner prior to the public hearing, all requests for Proportional Assessment Ballots must be submitted to the City Clerk not later than 7 days prior to the date scheduled for the public hearing on the assessment. This time limit (and the requirement to provide mailing addresses) will not apply if all of the owners jointly appear at the Public Hearing and present evidence sufficient to allow the Engineer to compute the proportional assessments. The Clerk will not accept any requests for proportional ballots made less than 7 days in advance of the hearing date unless all owners appear jointly in person to make the request. All written requests and Replacement Ballot Request Forms will bekept in the Clerk’s office as a separate part of the AssessmentBallot File. Computational Questions If after receiving a notice and ballot, the property owner questions the computation of the assessment on his or her property, as shown in the Engineer’s Report as preliminarily approved by the City Council, the property owner may question the calculation by providing written documentation explaining the reason why the assessment should be changed. In the event that a computation is questioned, DPW and the Engineer will review the written documentation submitted by the property owner and any other information they deem relevant, and make a recommendation to the City Council as to whether or not the assessment amount should be changed. In making these computational determinations, DPW and the Engineer will follow the City’s parking ordinance to resolve questions related to the design or function of on- site parking spaces. C:Walo Alto Parking Structure\Balloting Proceedures and Forms\Final Proceedures.docFinal Pr~ceedures.doe City of Palo Alto University Avenue Area Off-Street Parking Assessment District Assessment Balloting Procedures Page 7 of 10 01115101 Computational questions will be considered up until the close of the public testimony portion of the Public Hearing on the proposed Assessment. The City Council will not consider appeals or protests received after this time. . : ~ If the re-computation results in a smaller assessment, the smaller amount will be used in the tabulation. However, in no event will the re-computation result in an assessment that is higher than that shown in the notice unless the property owner agrees in writing to such an increase. 5. TABULATION Which Assessment Ballots will not be counted? Only Assessment Ballots which are completed and retumed in accordance with these procedures will be counted. The following will not be valid and will not be counted: ¯:.Assessment Ballots received by the City, which are unsealed ¯:.Assessment Ballots received after the close of the public testimony portion of the Public Heating (regardless of postmark date); ..:.Assessment Ballots that are not signed by the owner or bearing an illegible signature ¯ :.Assessment Ballots that are not originals (i.e., copies) ¯:.Assessment Ballots with no boxes marked (i.e., no selection made), or with both boxes marked (i.e., selecting both "in favor" and "oppose"); and ¯ :. Assessment Ballots withdrawn in accordance with these procedures. When and where the Assessment Ballots will be tabulated Assessment Ballots will be opened and tabulated only after the close of the public testimony portion of the Public Hearing. If the tabulation cannot be completed the night of the Public Hearing, the Clerk will complete the tabulation and report the results back to Council at the next available Council meeting. How the Assessment Ballots will be tabulated Assessment Ballots will be weighted according to the proportional financial obligation of the affected property; provided however, that Proportional Assessment Ballots will be weighted in accordance with the dollar value assigned to the Assessment Ballot, even if less than all of the Proportional Assessment Ballots are returned. If one or more Proportional Assessment Ballots are returned for a parcel and a non-proportional Assessment Ballot is also returned for the same parcel, the non-proportional ballot will either be disregarded (if the same owner has returned a Proportional Assessment Ballot) or treated as a Proportional Assessment Ballot (if the same owner has not returned a Proportional Assessment Ballot). C:Waio .Alto Parking Structure\Balloting Proceedures and FormsWinal Proceedures.docFinal Pr0ceedures.doc " City of Palo Alto ,,University Avenue Area Off-Street Parking Assessment District Assessment Balloting Procedures Page 8 of 10 01115101 Who will tabulate the Assessment Ballots The Engineer and deputized staff from DPW, under the supervision of the Clerk, will tabulate the - ballots after the close of the public testimony portion of the public hearing. Results of the tabulation The results of the tabulation will be announced following the completion of the tabulation and entered in the minutes of the City Council meeting. Resolution of Disputes regarding Property Ownership In the event of a dispute regarding whether the signer of a Assessment Ballot is the owner of the parcel to which the Assessment Ballot applies, the Engineer will make such determination from the last equalized assessment roll and any evidence of ownership submitted tO the Clerk prior to the conclusion of the public testimony portion of the public hearing. Neither the Clerk nor the Engineer shall be required to obtain or consider any other information. The Council’s determination based on recommendation from staff and the Engineer will be final and conclusive. c:walo Alto Parking Structure\Balloting Proceedures and FormsWinal Proceedures.docFinal Proceedures.doc . City of Palo Alto University Avenue Area Off-Street Parking Assessment District Assessment Balloting Procedures Page 9 of 10 01115101 Frequently Asked Questions Who may complete an Assessment Ballot? The owner of record of the assessor’s parcel subject to the assessment may complete the ballot. The "owner" includes the owner’s authorized representative. If a representative of the owner signs the ballot, that representative must attach evidence of authority as described in the Notice included with the ballot. If the owner of the parcel is a partnership, joint tenancy or tenancy in common, an Assessment Ballot may be filed by any of the general partners, joint tenants or¯tenants in common. Except as set forth below~ only one Assessment Ballot may be completed for each parcel. Assessment Ballots may be signed by the owner of the property as indicated on the records kept by the Santa Clara County Assessor and Recorder, or by an authorized representative of the owner. The City reserves the right to confirm ownership records.for ballots not completed by the record owner. I’m the representative of the Record Owner, how do I submit a ballot on his/her behalf?. Have the record owner execute the Owner’s Authorization included with the Assessment Ballot . Package. Include this form with the returned Assessment Ballot(s). How do I submit the Ballot? To complete an Assessment Ballot, the owner’ofthe parcel (or his/her authorized representative) must: ¯:. mark the appropriate box, either in favor of or opposing the proposed assessment ¯:. sign the ballot ¯:. seal the ballot in the return envelope Only one box may be marked on each Assessment Ballot. Assessment Ballots must be completed in ink. Where to file the Assessment Ballots? Assessment Ballots may be mailed to the City Clerk, City of Palo Alto, P.O.Box 50309, Palo Alto, California. Assessment Ballots may also be delivered in person to the City Clerk’s office at 250 Hamilton Avenue in Palo Alto or at the Public Hearing on the proposed Assessment. The Public He.~ring will be held by the City Council at the City Council Chambers, 250 Hamilton Avenue, Palo Alto, CA at its March 19, 2001 meeting, which commences at 7:00 p.m. Assessment Ballots may not be returned by fax or by e-mail. C:Walo Alto Parking Structure\Balloting Proceedures and FormsWinal Proceedures.docFinal Proceedures.doc City of Palo Alto University Avenue Area Off-Street Parking Assessment District Assessment Balloting Procedures How do I get more Information? For assessment information, contact Mike Nafziger at 650-617-3103 Attend the Public Workshops scheduled for: <dates are currently being finalized> Meet with the Assessment Engineer in the City Clerk’s office on the following days: <dates are currently be~ng finalized> I lost/damaged my ballot. Can I get another ballot? Yes. You must submit a written request to the City Clerk. Your request must include your name, address and Assessor’s parcel number and the fact that you are requesting another ballot, and the reason(s) for the request. You must sign your request. The City can provide you with a "Replacement Assessment Ballot Request" Form. You can fax this form to us. Upon verification of the request, the replacement ballot will be issued promptly. I east my ballot and now I changed my mind. Can I get another ballot? Yes. You must submit a written request to the City Clerk. Your request must include your name, address and Assessor’s parcel number and the fact that you are requesting another ballot and the reason for the request. You must sign your request. The City can provide you with a "Replacement Assessment Ballot Request" Form or a "Withdrawal of Assessment Ballot" Form. You can fax either of these forms to Us. Upon verification of the request, the replacement ballot will be issued promptly. Can I fax my ballot to you? No, the law requires that we receive your ballot in a sealed envelope in order for the proceedings to remain confidential until the ballot tabulation commences. Page 10 of 10 01115101 CAPalo Alto Parking Structure\Balloting Proceedures and Forms\Final Proceedures.docFinal Proceedures.doc City of Palo Alto University Avenue Off-Street Parking Assessment District Special Request Log Original Assessment Number Assessor’s Parcel Number Date Date NewRequest In Out Assessment Number Initials Notes: 1. Log Special R~quests as: Withdrawal, Replacement, Proportional. 2.For Replacement Ballots: the new Assessment Number is created by adding a letter to the original Assessment Number (e.g. Assessment Number 12 becomes Assessment Number 12-A). 3.For Proportional Ballots: the new Assessment Numbers are created by adding a number to the original Assessment Number (e.g. Assessment Number 15 becomes Assessment Numbers 15-1, 15-2 etc.) 4.This form may be duplicated as necessary to log requests received during the Assessment Balloting process. City Clerk City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 <<Assessment Number>> NOTICE OF PROPOSED NEW ASSESSMENTS and ASSESSMENT BALLOT for the CITY OF PALO ALTO, CALIFORNIA University Avenue Area Off-Street Parking Assessment Dist ~Owner_Name~ ~,Address~ ~City~ , ,,State~ ,~Zip~ ~Parcel_~) Proposed Total Assessment for this Parcel is: ~,Assessement~, ASSESSMENT BALLOT: The Property Owner shown opposite selects one of the following: IN FAVOR OF ASSESSMENT OPPOSE ASSESSMENT Signature of Property Owner Detach Here and Mail or Deliverto City Clerk at fhe Above Address - See Part 4 Below THE CITY OF PALO ALTOGIVES NOTICE that: 1. Purpose of Assessments. The City of Palo Alto is proposing to levy new assessments in the above Assessment District that includes your property. The purpose of the assessment is to fund the estimated costs of two new parking garages serving the University Avenue area; to refinance existing debt at better rates and terms and to fund all related administrative and incidental costs, including the costs of forming the Assessment District. 2. The Assessments. The total of the proposed assessments for the whole Assessment District is $45,904,133. The proposed total assessment on your property identified above is as shown above. The basis upon which the assessments are calculated, including any proposed increases, is shown on the back of this Notice. Please read it carefully. The proposed assessment cannot be increased without another ballot process. If the assessments are confirmed, you will be given a separate notice that you have the option to pay all or part of the assessment in cash for at least 30 days. This will allow you to save certain bond costs and clear the property of the assessment without any interest or penalty. If left unpaid, the ’ assessments will. continue to be collected against the properties in the Assessment District on the property tax bill as long as needed to pay installments of principal and interest on the proposed assessment bonds, but not to exceed 29 years from the date of such bonds. 3. Public Hearing. Before taking final action on the proposed Assessment District and the assessments, the City Council will hold a Public Hearing at City Council Chambers, City Hall 250 Hamilton Avenue, Palo Alto California on Monday, March 19 2001 at 7:00 p.m. to take final public testimony, hear protests, tabulate the Assessment Ballots and the take final action on the levy the assessments. 4. Assessment Ballot. At or before the end of the Public Hearing~ any property owner in the Assessment District may submit the Assessment Ballot, which is the upper part of this Notice, to the City Clerk. To do so, the owner must: cut off the Ballot portion above; mark the Ballot either "In Favor of Assessment" or "Oppose Assessment;" sign the ballot and place the ballot in the return envelope provided with this notice. Any Ballots that are returned unmarked, unsigned or not enclosed in a sealed envelope will be rejected and not counted. The Ballots may be hand-delivered to the City Clerk at the Reserved for Assessment Ballot Please See Other Side Detach Here and Mall or Deltverto CRy Clerk at the Above Address - See Part 4 Below address shown above or mailed to the City Clerk at P.O. Box 50309 Polo Alto, California, 94301. To be counted, a Ballot must be received by the City Clerk not later than the end of the Public Testimony portion of the Public Hearing specified above. Postmarks will not be accepted. The assessment shall not be imposed if the ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessments, with ballots, weighted according to the proportional financial obligation of the proposed assessments on the affected property. 5. More Information. To get additional information about the assessments or the Assessment District, contact: Mike Nafziger, Assistant Engineer, Department of Public Works Services, City of Polo Alto, 250 Hamilton Avenue,. Polo Alto, California, 94301, Telephone: (650) 617-3103. The Engineer’s Report and other written material about the Assessment District may be reviewed at this address and at the office of the City Clerk at the above address during regular business hours. The City will hold further property owner workshop(s) as shown on the enclosed notice. Please plan to attend to ask questions about the Assessment District. Dated as of January 22, 2001 City Clerk, City of Palo Alto METHOD OF ASSESSMENT Quantification of Benefit:. The City, through its Parking Ordinance has established a parking standards of 1 space for 250 square feet of commercial or public building area in the University Avenue Area. Assessments are apportioned based on this parking standard. The benefit formula can be mathematically expressed below: For Residential Properties: Parcel Benefit (in PBU) ffi 0 For existing Churches that do not ordinarily place large parking demands during peak business hours: Parcel Benefit (in PBU) = 0 For Existing University Avenue Parking Facilities: Parcel Benefit (in PBU) ’-0 For All other Parcels: Parcel Benefit (in PBU) = (Enclosed square footage on a Parcel) x (4 PBU/1,000sf) -(onsite parking provided) Assessment Rate (in $/PBL0 = (Project Cost)/(Total PBU in District) Parcel Assessment = Assessment Rate x Parcel Benefit Return to: City Clerk City of Palo Alto 250 Hamilton Ave, :, ~- Palo Alto, Califor~~ !.301 Fa~ (650) 328-363~ City of Palo Alto California University Avenue Area Off-Street Parking Assessment District OWNER’S AUTHORIZATION for CITY OF PALO ALTO UNIVERSITY AVENUE AREA OFF-STEET PARKING ASSESSMENT DISTRICT The undersigned is an owner of the property (the "Property") identified below and ~eby authorizes to execute the attached document in the assessment ballot proceedings to be held by the City of Palo Alto to form the above assessment district (the "District") and levy assessments therein. I understand that if the District is formed after an affirmative majority assessment ballot, the City will levy a special assessment on the property to pay for public parking improvements, refunding of existing assessment bonds and related costs and administration. By signing this authorization, I waive any rights to receive any further notices, ballot materials, or other documents about the special assessment ballot or to submit any other ballot for it. Dated:The Property is Santa Clara County Assessor Parcel(s) No.(s): I declare under penalty of perjury that the foregoing is true and correct. Print Name of Owner:Signature of Owner: Note: This Authorization must accompany any Assessment Ballot, Replacement Assessment Ballot, Proportional Assessment Ballot Request, or Replacement Assessment Ballot Request to be signed by an owner’s representative. Return to: City Clerk City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 Fax: (650) 328-3631 City of Palo Alto California University Avenue Area Off-Street Parking Assessment District WITHDRAWAL OF ASSESSMENT BALLOT The undersigned, being the owner of the property identified below has previously submitted an assessment ballot to the City Clerk of the City of Palo Alto for the City’s proceedings in and for the captioned assessment district. By executing~ this "Withdrawal of Assessment Ballot," the undersigned hereby formally withdraws the ballot previously submitted and authorizes and directs the City Clerk to mark such ballot "Withdrawn by Property Owner" and to remove the ballot thus withdrawn from the tabulation of assessment ballots in and for the above assessment district. Dated as of: By:, The property (ies) is (are) Santa Clara County Assessor Parcel(s) Number(s): City of Palo Alto Assessment District Number(s): Instrncfions to Owners: This form can be used to formally withdraw your assessment ballot from the City’s proceedings, which will result in the ballot not being tabulated. If you have decided to change your ballot you may also request a Replacement Ballot using a replacement ballot form. If you use this option, your replacement ballot will be tabulated. Required Information: Please fill in the date, your assessor’s parcel(s) number(s) and your Assessment Number(s). These numbers can be found in the upper left -hand comer of your ballot(s). Please sign this form. Deadline for Receiving Withdrawal of Assessment Ballot: All requests must be received prior to the close of the public testimony portion of the Public Hearing scheduled to begin at 7:00 p.m. on March 19, 2001. As a practical matter, this means the Clerk must receive marled or faxed forms before 5:00 p.m. on March 19, 2001. How .to Return Withdrawal of Assessment Ballot: Requests may be mailed, hand delivered or faxed to the City Clerk at the address listed above. Do not return this request in the Assessment Ballot return envelope. 4. Questions: Please contact Mike Nafziger at (650) 671-3103. Return to: City Clerk City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 Fax: (650) 328-3631 City of Palo Alto California University Avenue Area Off-Street Parking Assessment District REPLACEMENT ASSESSMENT BALLOT REQUEST The undersigned, being the owner of the property identified below requests a replacement assessment ballot from the City Clerk of the City of Palo Alto for the City’s proceedings in and for the captioned assessment district. By executing this "Replacement of Assessment Ballot Request", the undersigned agrees that the replacement ballot, when issued by the City Clerk and returned, will supercede any and all assessment ballot(s) previously delivered to the City Clerk. The undersigned authorizes the City Clerk to mark any previously returned ballot(s) "Withdrawn by Property Owner" and to remove these from the tabulation of assessment ballots in and for the above assessment district. Dated as of: By:. The property (ies) is (are) Santa Clara County Assessor Parcel(s) Number (s): City of Palo Alto Assessment District Number(s):. Instructions to Owners: This form can be used to request Replacement Assessment Ballots if your original ballot(s) has (have) been lost, damaged or you have changed your mind. If you use this option, your replacement ballots will be tabulated and any previously returned ballots will not be tabulated. Required Information: Please fill in the-date, your assessor’s parcel(s) number(s) and your Assessment Number(s). These numbers can be found in the upper left -hand corner of your ballot. Please sign this form. Deadline for Receiving Replacement Requests: All requests must be received prior to the close of the public testimony portion of the Public Hearing scheduled to begin at 7:00 p.m. on March 19, 2001. As a practical matter, this means the Clerk must receive mailed or faxed forms before 5:00 p.m. on March 19, 2001. o How to Return Replacement Requests: Requests may be mailed, hand delivered or faxed to the City Clerk at the address listed above. Do not return this request in the Assessment Ballot return envelope. 4. Questions: Please contact Mike Nafziger at (650) 671-3103. Rein to: CityClerk City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 F~ (~0) 328-3631 City of Palo Alto California University Avenue Area Off-Street Parking Assessment District PROPORTIONAL ASSESSMENT BALLOT REQUEST Theundersigned, being the owner of the properties identified below requests proportional assessment ballots from the City Clerk of the City of Palo Alto for the City’s proceedings in and for the captioned assessment dist~ By executing this "Proportional Assessment Ballot Request," the undersigned agrees that the proportional assessment ballots, when issued by the City Clerk and returned, will supercede any and all assessment ballot(s) previously delivered to the City Clerk. The undersigned agrees if one of the joint owners retrain the original assessment ballot and other .owners return proportional ballots, then all ballots will be talm]ated according to the proportional interests of each owner. Dated as of:By: Theproperty(ies) is (are) Santa Clara County Assessor Parcel(s) Number: City of Palo Alto Assessment District Number(s): Reqaired Attachments: 1. Names and Addresses for each of the owner(s). 2. Evidence of each owners’ proportional interest such as the property deed, Title Report or partnership agreement. Instructions to Owners: This form can be used to request Proportional Assessment Ballots if the property owners wish to cast their assessment ballots in proportion to their interest(s) in the property(ies) If you use this option, all returned ballol~ for the property(ies) will be tabulated according to the proportional interest. Required Information: Please fill in the date, your County assessor’s parcel(s) number(s) and your Assessment Number(s). These numbers can be found in the upper left -hand corner of your ballot. Please sign this form. Attach the Required Attachments indicated above. l~dline for Receiving Proportional Assessment Ballot Requests: Because of the need to provide a notice and ballot to each owner, all requests must be received by March 12, 2001 (7 days prior to the Public Hearing scheduled to begin at 7:00 p.m. on March 19, 2001.) This deadline will be waived only if all owners appear before the City Clerk at the Public Hearing with evidence of each owners" proportional interest. o lt0w to Return Replacement Requests: Requests and the required attachments may be mailed, hand delivered or faxed to the City Clerk at the address listed above. Do not return this request in the Assessment Ballot return envelope. 4. Q~esfions: Please contact Mike Nafziger at (650) 671-3103. City Clerk City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 <<Assessment Number>> NOTICE OF PROPOSED NEW ASSESSMENTS and ASSESSMENT BALLOT for the CITY OF PALO ALTO, CAi~IFORNIA University Avenue Area Off-Street Parking Assessment District ~Owner_Name~ ~Address~ ~.City,, , ~State~, ~Zip~, ¢¢Parcel~,, Proposed Total Assessment for this Parcel is: ~Assessement~ ASSESSMENT BALLOT: The Property Owner shown opposite selects one of the following: IN FAVOR OF ASSESSMENT OPPOSE ASSESSMENT Signature of Property Owner TI4I.~ BALLOT IS A REPLACEMENT BALLOT. IT REPLACES THEBALLOT PREVIOUSLY SUBMITTED FOR THE ABOVE-DESCRIBED PROPERTY. BY COMPLETING, SIGNING AND SUBMITTING THIS REPLACEMENT BALLOT, THE PROPERTY OWNER HEREBY OFFICIALLY WITHDRAWS ANY AND ALL BALLOTS PREVIOUSLY SUBMITTED FOR THE SAME PROPERTY Detach Here and Mail or Dellver to City Clerk at the Above Address - See Part 4 Below THE CITY OF PALO ALTO GIVES NOTICE that: 1. , Purpose of .Assessments. The City of Palo Alto is proposing to levy new assessments in the above Assessment District that includes your property. The purpose of the assessment is to fund the estimated costs of two new parking garages serving the University Avenue area; to refinance existing debt at better rates and terms and to fund all related administrative and incidental costs, including the costs of forming the Assessment District. 2. The Assessments. The total of the proposed assessments for the whole Assessment District is $45,904,133. The proposed total assessment on your property identified above is as shown above. The basis upon which the assessments are calculated, including any .proposed increases, is shown on the back of this Notice. Please read it carefully. The proposed assessment cannot be increased without another ballot process. If the assessments are confirmed, you will be given a separate notice that you have the option to pay all or part of the assessment in cash for at least 30 days. This will allow you to save certain bond costs and clear the property of the assessment without any interest or penalty. If left unpaid, the assessments will continue to be collected~against the properties in the Assessment Dista’ict on the property tax bill as long as needed to pay installments of principal and interest on the proposed assessment bonds,.but not to exceed 29 years from the date of such bonds. 3. Public Hearing. Before taking final action on the proposed Assessment District and the ossessments, the City Council will hold a Public Hearing at City Council Chambers, City Hall, 250 Hamilton Avenue, Palo Alto California on Monday, March 19 2001 at 7:00 p.m. to take final public testimony, hear protests, tabulate the Assessment Ballots and the take final act:ion on the levy the assessments. 4. Assessment Ballot. At or before the end of the Public Hearing, any property owner in the Assessment Dis~ct may submit the Assessment Ballot, which is the upper part of this Notice, to the City Clerk. To do so, the owner must: cut off the Ballot portion above; mark the Ballot either "In Favor of Assessment" or "Oppose Assessment;" sign the ballot and place the ballot in the return envelop6 provided with this notice. Any Ballots that. are returned unmarked, unsigned or not enclosed in a sealed envelope will be rejected and not counted. The Ballots may be hand-delivered to the City Clerk at the Reserved for Assessment Ballot Please See Other Side Detach Here and Mail or Dellverto Clty Clerk at the Above Address - See Part 4 Below address shown above or mailed to the City Clerk at P.O. Box 50309 Palo Alto, California, 94301. To be counted, a Ballot must be received by the City Clerk not later than the end of the Public Testimony protion of the Public Hearing specified above. Postmarks will not be accepted. The assessment shall not be imposed ff the ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessments, with ballots weighted according to the proportional financial obligation of the proposed assessments on the affected property. 5. More Information. To get additional information about the assessments or the Assessment District, contact: Mike Nafziger, Assistant Engineer, Department of Public Works Services, City of Palo Alto, 250 Hamilton Avenue, Palo Alto, California, 94301, Telephone: (650) 617-3103. The Engineer’s Report and other written material about the Assessment District may be reviewed at this address and at the office of the City Clerk at the above address during regular business hours. The City will hold further property owner workshop(s) as shown on the enclosed notice. Please plan to attend to ask questions about the Assessment District. Dated as of January 22, 2001 City Clerk, City of Pal0 Aft0 METHOD OF ASSESSMENT Quantification of Benefit: The City, through its Parking Ordinance has established a parking standards of 1 space for 250 square feet of commercial or public building area in the University Avenue Area. Assessments are apportioned based On this parking standard. The benefit formula can be mathematically expressed-below: For Residential Properties: Pared Benefit (in PBU) = 0 For existing Churches that do not ordinarily place large parking demands during peak business hours: Parcel Benefit (in PBU) = 0 For Existing University Avenue Parking Facilities: Parcel Benefit (in PBU) =0 For All other Parcels: Parcel Benefit (in PBU) = (Enclosed square footage on a Parcel) X (4 PBU/1,000sf) -(onsite parking provided) Assessment Rate (in $/PBU) = (Project Cost)/(Total PBU in District) Pared Assessment = Assessment Rate x Parcel Benefit ATTACHMENT F Financial Scenarios for Non-Parking Area/Teen Center/Commercial Area Scenario I Annual Debt Service Estimated Rental Revenue Annual Net Margin Scenario II Mix of Teen, retail and office Annual Debt Service Estimated Rental Revenue Annual Net Margin All space rented for retail and office $ $ $ $ $ 286,000 578,000 292,000 250,000 231,243 (18,757) Scenario III All space used for Teen Center andlor non-profit Annual Debt Service Estimated Rental Revenue Annual Net Margin $250,000 $- $ (250,000) Assumptions: 1. Ground floor retail space rented at $4.50 per square foot 2. Second floor space rented for office use at $8.50 per square foot