HomeMy WebLinkAboutStaff Report 3785
City of Palo Alto (ID # 3785)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/10/2013
City of Palo Alto Page 1
Summary Title: Assessment for California Avenue Area Parking Bonds
Title: Public Hearing – Assessment for California Avenue Area Parking Bonds
– Plan G: FY 2013-2014; Adoption of a Resolution Confirming Engineer’s
Report and Assessment Roll, California Avenue Parking Project No. 92-13 (For
Fiscal Year 2013-2014)
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council adopt the attached Resolution (Attachment A) confirming the
Engineer's Report and Assessment Roll for California Avenue District, Project No. 92-13.
Background
By virtue of the prior establishment of the assessment district and issuance of debt, Council
action is required to levy assessments for the active parking project in the California Avenue
area. These assessments will be utilized for the payment of principal and interest on bonds for
capital improvements pursuant to the attached resolution. These funds are separate and
distinct from permit fees that are used to pay for operation and maintenance of parking
facilities.
The active project is listed and described as follows:
1. California Avenue District, Ted Thompson Parking Structure, Project 92-13: Construction of
a two-level parking structure on Cambridge Avenue between Birch Street and Nogal Lane.
Parking bonds issued under Bond Plan G (Section 13.16.150, Palo Alto Municipal Code) require
that a public hearing be held annually (the second Monday in June) on the assessments, which
must be levied to pay principal and interest on the bonds. The purpose of the public hearing is
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to allow each property owner the opportunity to question the computation of his/her
assessment and the elements which comprise it, that is, the square footage of each occupied
building, the off-street parking requirements for the usage, and the off-street parking provided.
Assessments are levied on the basis of building square footage, with a credit given for the off-
street parking provided by the property owner. Additional details about the Parking
Assessment District-Plan G bond capital improvement program projects can be found in
Attachment B.
Discussion
The assessment rates for FY 2013-14 (Attachment C) per square foot of adjusted
building area and the amount levied for the project is:
PROJECT ASSESSMENT RATE PER
ADJUSTED BUILDING
SQUARE FOOTAGE
DOLLARS
LEVIED
1. California Avenue District, Ted Thompson
Parking Structure, Project 92-13
$9.15*
$0.060**
Total:
$123,626.20
$ 41,208.74
$164,834.94
*Rate per weighted assessment factor.
**Rate per land square footage.
Approximately $341,000 in excess construction funds in the California Avenue
District bond fund for the Ted Thompson parking garage, Project 92-13, was used
to reduce the tax roll required to pay off the bonds sold to finance the project. To
equalize assessments, the funds were spread uniformly over the duration of the
bonds (20 years) beginning with the 1996 assessments.
Attachment D lists any changes made to the assessment rolls in response to new information.
The estimated assessments were sent to property owners within the California Avenue district
on May 14, 2013. A map of the District is contained in Attachment E. Estimated assessments
may be modified due to recent changes in business site conditions (square footage, vacancy,
etc.), which are brought to staff's attention by property owners after the estimated
assessments are prepared. As of the date of publication of this staff report, Attachment D does
not list any assessment roll changes. Because the hearing itself is the legally prescribed process
by which questions about the basis of assessment and the property owners' individual
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circumstances may be heard, it may be necessary to have an updated Attachment D available
“at places” at the Council meeting that reflects changes brought to staff's attention since the
Council packet was delivered. The public hearing for the assessment district may need to be
continued if last minute information brought forward by property owners cannot be verified
and included in the amended rolls prior to the hearing.
Resource Impact
The project is funded by the assessment district and no City General Fund monies are involved.
Although assessments are generally subject to Proposition 218, this particular assessment is
exempt from Proposition 218 since all of the assessment proceeds are pledged to repay bond
indebtedness issued prior to enactment of Proposition 218. Parking district maintenance costs,
including sweeping, landscaping, signing and lighting are paid for by parking permit fees, which
were last increased in 2005 in the California Avenue Parking District. These are separate from
the funds used to pay for construction of the parking garage.
Policy Implications
Approval of this action does not represent any change to existing City policies.
Timeline
The assessments will be sent to the Santa Clara County Tax Collector in July and will appear on
the October property tax bills.
Environmental Review
Approval of assessments is exempt by from the California Environmental Quality Act (CEQA).
Attachments:
A - Resolution - Cal Ave Park Bonds Plan G 2 (PDF)
B - Parking Assessment District-Plan (DOC)
C - Assessment Rates FY 2011-2012 (PDF)
D - Amendments (DOC)
E - California Avenue Parking Assessment District Map (PDF)
RESOLUTION NO. __ _
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
CONFIRMING ENGINEER'S REPORT AND ASSESSMENT ROLL
CALIFORNIA AVENUE PARKING ASSESSMENT DISTRICT NO. 92-13
(For Fiscal Year 2013-14)
THE COUNCIL OF THE CITY OF PALO ALTO DOES RESOLVE as follows:
Section 1: After proceedings conducted pursuant to the Palo Alto Municipal Code, a public
hearing has been duly held on the Engineer's Report and assessment roll prepared for the above fiscal
year to pay the principal and interest on bonds issued pursuant to Resolution of Intention No. 7930,
adopted by the Council of the City of Palo Alto on August 9, 1993;
Section 2: This Council has heard all persons having an interest in any real property within the
parking assessment district; has heard all objections, protests, or other written communications from any
persons interested in the real property within the district; has taken and received oral and documentary
evidence pertaining to the matters contained in the report; and has remedied and corrected any errors or
informalities in the report and revised and corrected any of the acts or determinations of the various City
officials as contained therein;
Section 3: The Engineer's Report and assessment roll, and each of the assessments therein as
fully revised and corrected, is hereby approved and confirmed and adoption of this Resolution constitutes
the levy of the assessments for fiscal year 2013-14.
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Section 4: The report together with the certificate of the City Clerk as to the fact and date of
approval by this Council, shall forthwith be delivered to the County of Santa Clara, and the proper County
officer shall cause to be posted to the tax rolls, in the column provided therefor the amount of each of the
assessments proposed to be levied and collected for the fiscal year as set forth in the report as confirmed.
INTRODUCED AND PASSED: _____ ,20l3
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Jones Hall,
A Professional Law Corporation
By: ~~~~----A------------------
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APPROVED:
Mayor
City Manager
Director of Public Works
Director of
Administrative Services
Senior Asst. City Attorney
Attachment B
CAPITAL IMPROVEMENT PROJECT
FINANCED BY ASSESSMENT PROCEDURES USING G-BONDS
CALIFORNIA AVENUE AREA
BOND ISSUE AMOUNT OF
BOND ISSUE
PURPOSE OF ISSUE DATE ISSUED DATE OF
MATURITY
INTEREST
RATE
California Avenue
Project 92-13
(Ted Thompson
Garage)
$2,055,000
Construction of a future two level parking structure on lot C-3 and the
two parcels acquired by project 86-01.
11/93
09/02/2015
3.4% - 5.4%
Attachment D
CALIFORNIA AVENUE DISTRICT AMENDMENTS
PRELIMINARY ROLL Address,
Parcel Number
Use
Square
Feet
Parking
Reqd.
Parking
Prov
Assessment
92-13
No amendments
AMENDED ROLL
Address,
Parcel Number
Use
Square
Feet
Parking
Reqd.
Parking
Prov
Assessment
92-13
No amendments