HomeMy WebLinkAbout2001-12-10 City Council (11)TO:
FROM:
DATE:
SUBJECT:
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT:
2
ADMINISTRATIVE
SERVICES
DECEMBER 10, 2001 CMR: 444:01
1) _ADOPTION OF ATTACHED RESOLUTION ORDERING
FURTHER CASH PAYMENTS FOR SECOND SERIES OF
UNIVERSITY AVENUE AREA OFF-STREET PARKING
ASSESSMENT DISTRICT BONDS; AND
2) CONFIRMATION TO ISSUE TAXABLE CERTIFICATES
OF PARTICIPATION TO CONSTRUCT NON-PARKING
AREA ON LOT S/L; RENT SPACE FOR COMMERCIAL USE
AND UTILIZE NET REVENUE TO FUND TEEN
PROGRAMS; AND
3) APPROVAL TO USE NET REVENUE FROM NON-
PARKING RENTAL SPACE TO SUBSIDIZE BARKER
HOTEL ASSESSMENT
4) DIRECT STAFF TO REFUND AND REFINANCE 1992
CERTIFICATES OF PARTICIPATION FOR CIVIC CENTER
IMPROVEMENTS
REPORT IN BRIEF
The City is ready to initiate the second phase of financing for construction of the new
downtown parking garages and the non-parking area on the Lot S/L site. By adopting the
attached resolution, Council will begin the "cash collection" process necessary before
issuing assessment improvement bonds in early March. Construction on both garages is
expected to begin in early April.
CMR:444:01 Page 1 of 9
Staff is also requesting Council reaffirrnation and direction on several other financing and
funding issues. On May 14 2001, Council endorsed a funding plan for teen progams by
allocating 75 percent of net revenues from commercial rentals in the non-parking space
on Lot S/L. To build this space and realize the revenues, taxable debt must be issued.
Staff will return on December 17 2001, requesting formal Council approval. In this
report, staff is also requesting Council approval to use a portion of the net rental revenues
to subsidize part of the Barker Hotel’s new assessment. Staffs recommendation on this
subsidy fulfills a commitment made on March 19, 2001 to fred a solution to the Palo Alto
Housing Corporation’s petition on this matter. Finally, staff is requesting approval to
move forward with refunding and refinancing the City’s 1992 Civic Center Certificates of
Participation based on current low- interest rates and expected savings. This action will
postpone a sQ~nificant expense this fiscal year as ~vell as result in net present value
savings.
Financial impacts from approved actions above will be included in midyear adjustments
to the 2001-02 budget and in upcoming budgets. These impacts are detailed in the
Resource Impact section of this CMR.
CMR:444:01 Page 2 of 9
RECOMMENDATION
Staff recommends that Council:
°
o
Adopt and approve the attached Resolution (Attachment B) "Ordering Further
Cash Payments and Directing Actions with Respect Thereto" for the University
Avenue Off-Street Parking Assessment District.
Direct staff to issue taxable Certificates of Participation to construct non-parking
space on Lot S/L site for commercial use and utilize net revenues to fund youth
and teen progams.
Approve subsidizing Barker Hotel assessment by using rental revenues from non-
parking-space on Lot S/L site.
Direct staff to pursue refunding and refinancing of 1992 Certificates of
Participation for Civic Center improvements.
BACKGROUND
On March 19, 2001, property owners in the University Avenue Off-Street Parking
Assessment District approved a new assessment that would refund prior parking
improvement bonds and provide funding for the design and construction of two new
parking structures on Lots R and S/L (CMR:170:01). The financing plan for the parking
structures consisted of two phases or two series of bonds. After a required thirty day cash
payment period in which district property owners had the opportunity to pay all or part of
their assessment, staff initiated the first of two financing phases to construct the garages.
This phase included: refunding prior parking bonds; reimbursing the General Fund
previously advanced project costs; and obtaining new funding to complete final design of
the garages. On May 14 2001, Council approved a resolution to issue and sell the first
series of bonds (CMR:237:01). Bonds in the amount of $9,135,000 were sold
successfully on June 13, 2001.
In addition to building a parking structure on the Lot S/L site, Council approved
construction of a non-parking area that will be an extension of the parking garage. Costs
for building this extension remain the responsibility of the City’s General Fund. Initial
plans for this area were to house a downtown teen center, with the remaining space used
for retail and other commercial purposes. Rent from commercial users was to be used to
offset the City’s debt service costs for constructing the non-parking area.
As a result of a Youth Master Plan study and student survey conducted in spring 2001, an
alternative proposal for delivering youth and teen services was presented to Council on
May 14, 2001. Members of the Pa!o Alto Youth Council shared results of a student
survey indicating that 77 percent of respondents preferred having more .progams,
activities, and special events rather than a new downtown teen center. The survey, along
with input from a variety of teen advisory boards, indicated a strong desire for teen-
CMR:444:01 Page 3 of 9
created programs and events such as film festivals, dance parties and ski trips. To fund
new programs and events, the Youth Council endorsed a Staff proposal to allocate 75
percent of net revenues derived from commercially renting the entire non-parking area to
funding youth and teen activities. Council endorsed this new plan (See Attachment A for
selected minutes with Council discussion on this item).
DISCUSSION
Each of the actions requiring Council approval are described below:
University Avenue Off-Street Parking Assessment District Bonds - Second Series
Given approval of the new assessment district on March 19, 2001 and a plan to beNn
construction of the new garages in spring 2002, it is necessary to begin the process of
issuing a second series of improvement .bonds. As with the first series, Council is
requested to adopt the attached resolution that sets in motion notification of a 30 day cash
payment period when property owners have the option to pay their assessments to avoid
incurring financing and furore interest costs. Property owners who do not pay cash will
have their assessments financed through the bond issuance. Upon Council approval of the
resolution, cash payment notices will be mailed to the property owners before the end of
December. After the cash payment period ends in late January, staff will return to
Council in early February for approval of a resolution that authorizes the issuance and
public sale of bonds and approves the necessary financing documents.
Now, staff estimates that $36,332,000 in bonds will be required to cover management,
acquisition, construction, and financing costs for the two new garages. Combined with
the first issuance, a total of an estimated $45,467,000 in bonds will have been issued on
behalf of the assessment district. This translates into an estimated annual assessment of
$1.45 per square foot for property owners of properties assessed once the entire
assessment is bonded (this includes the refinanced 1977 and 1989 parking bond
assessments estimated at $.35 per square foot). As mentioned in prior reports, the City of
Palo Alto is responsible for paying a share of the assessments under Proposition 218.
The proposition requires that public properties benefiting from the improvements must be
assessed and that the local agency (City) must separate general from special benefits to
property owners with the general benefits to be paid by the local agency.
Like any property owner, the City has an option to either pay its assessments in cash or
finance them over the life of the bonds. Also, like any property owner, the City may save
some money by avoiding some initial financing costs. An analysis based on expected
interest rates for the City’s portfolio (5.0 to 5.5 percent) versus the anticipated interest
rates on the assessment bonds (5.0 to 5.5 percent), indicates that there are no economic
benefits to the City under either option. Instead, the City should make its decision on
more strategic or policy driven considerations.
CMR:444:01 Page 4 of 9
If the cash payment option is selected, staff can identify a $699,000 payment that will not
have to be made in the 2001-02 budget as a result of refinancing the 1992 COPs (see
discussion below in section 3). This option, however, will require a draw on the Budget
Stabilization Reserve of approximately $521,000. Such a draw is not optimal in the short-
term given the City’s revenue picture and "strengthening the bottom line" effort.
The option to finance will result in an ongoing, annual payment of around $77,000 for the
next 30 years. The City has tended to be conservative about issuing debt and conserving
the use of furore resources. Staff does recommend, however, that the City pays this
annual assessment since it is relatively small and will provide some immediate relief to
current pressures on General Fund resources. By refinancing, the City will be relieved of
the $699,000 payment due this year. Staff will return with the appropriate budget
adjustments in the 2001-02 Midyear Report based on Council direction.
Non-Parking Area on S/L Site
The City of Palo Alto’s General Fund is responsible for all expenses associated with
building the non-parking area expansion on the S/L site. The current estimate for
constructing this facility is $3.1 million. Including financing costs, approximately $3.6
million in bond proceeds will need to be generated. Based on the current plan to rent this
area for commercial use and utilize net revenues for teen pro~ams and other purposes, it
is necessary for the City to issue taxable debt. With Council’s approval, staff will pursue
taxable Certificates of Participation to finance the non-parking area. Staff proposes using
the Civic Center as the asset needed to raise funds for the S/L extension and for
refinancing the 1992 COPs.
These COPs will be issued separately from the assessment improvement bonds and
separately, but simultaneously with the refinanced 1992 COPs. The taxable COPs and
tax-exempt refunding COPs will be issued as separate series, but will be marketed with
the same Official Statement. Staff will return to Council on December 17 for authority to
issue both series of COPs (estimated at $8.0 million) and to approve the necessary
financing documents. Taxable COPs result in a slightly higher interest rate and annual
lease or debt service payments. Assuming a 20 year amortization period, an interest cost
of 6.8 percent, and $3.6 million in bond proceeds, the estimated annual lease payment for
this facility will be around $331,000. Rental revenues, based on renting available space
on the first floor for retail purposes ($4.50 per square foot) and space on the second floor
for office use ($5.00 per square foot), are projected at $462,000, with net revenues of
$131,000 annually. Projected rental rates are based on information provided by a local
developer and somewhat reflect the current weakness in commercial rates.
Staff proposes that net revenues be used to subsidize the Barker Hotel assessment, for
youth and teen services, and for other General Fund services. At the March 19 public
hearing, the Palo Alto Housing Corporation (PAHC) requested that the City subsidize the
new assessment on the Barker Hotel based on its use as low-income housing and minimal
CMR:444:01 Page 5 of 9
usage of parking space. Council was receptive to this request and directed the City
Manager to develop a solution. Staff recommends that net revenues from the commercial
space leasing be used to subsidize the PAHC assessment. Based on current assessment
projections, the subsidy would equal around $7,600 annually. This amount is derived by
calculating the incremental amount of assessment related to the new garages for the SRO
space. PAHC will be responsible for that part of the new assessment related to the
commercial space on the first floor of the Barker site.
Remaining net revenues would then be distributed according to the proposal approved by
Council on May 14 (see Attachment A for the minutes from the meeting). Seventy five
percent of the net revenues would be allocated to youth and teen services and 25 percent
would be used for General Fund purposes. Based on the projections and uses
recommended above, it is estimated at this time that $92,000 would be allocated annually
for youth and teen programs and $31,000 would be available for General Fund use. These
allocations would increase as rental rates are increased over time.
Refunding and Refinancing of 1992 Certificates of Participation
As a result of falling interest rates, staff and the City’s financial advisor recommend
refinancing the 1992 Certificates of Participation issued for improvements to the Civic
Center. Current outstanding principal on these COPs is $3,520,000. Analysis shows
estimated net present value savings of $139,000 or 3.8 percent of outstanding bonds (net
of all costs of issuing the refunding). A refinancing also provides the City with an
opportunity to push out and amortize a $699,000 payment (due in March 2002) over the
remaining life of the bonds (bonds mature in 2012). By not making this payment in
2001-02, the City can re-budget these funds for other purposes such as the payment of its
downtown assessment obligations (see above) or simply reduce expenditures in 2001-02
as part of the ~stren~hening the bottom line" effort. The City is still required to make
this payment, albeit in a different timeframe.
The City’s financial advisor prepared a second refinancing scenario for City staff to
consider. It analyzed the benefits of refinancing the 1992 COPs over the next 20 years
instead of repaying them within the next 10 years. Based on an estimated interest cost of
4.7 percent, there were modest net present value savings of $52,000 or 1.5 percent of
outstanding bonds. The primary benefit of pursuing this option is that it would lower
annual lease payments in years 2003-05 from $815,000 to $256,000, thereby relieving the
General Fund of nearly $560,000 annually in lease payments. This option provides short-
term relief, especially if the recession lingers longer than expected, but it extends the life
of a City obligation with no significant economic savings. Staff does not recommend this
option because it does not provide reasonable savings, unduly extends the City’s debt
obligations, and constrains the use of future City resources.
CMR:444:01 Page 6 of 9
RESOURCE IMPACT
Staff’s recommendations have a positive impact of $540,000 on the 2001-02 budget.
¯This positive impact is the sum of the 1992 COPs lease payment expense of $699,00.0
(reduced expenditure) and the City’s 2001-02 assessment obligation of $159,000
(increased expenditure).
University Avenue Off-Street Parking Assessment District Bonds - Second Series
By issuing approximately $36,332,000 in the second assessment bond series for the
University Avenue Assessment District, the City will be responsible for collecting special
assessments in the Assessment District to service an estimated $45,467,000 in
improvement bonds. This translates into an estimated, annual cost of $1.45 per square
foot annually for each property assessed when total bonds are issued and assessments are
collected. Staff recommends that the City finance its assessment obligation resulting in
an estimated annual assessment payment of $77,400.
Non-Parking Area on S/L Site
Based on a $3.6 million bond issue, the City can expect an annual debt service payment
of $331,000 based on a 20 year amortization period and an interest rate of around 6.8
percent. Given the expected rental rates for commercial use and the commitments
discussed above, the following fiscal impacts are anticipated.
Rental Revenues
Debt Service
Barker Hotel Subsidy
Net Revenues
$462,000
$331,000
$ 7,600
$123,400
Teen Programs at 75%$ 92,600
General Fund at 25%$ 30,800
Refunding and Refinancing of 1992 Certificates of Participation
Based on the recommendation above, a refinancing of the 1992 Civic Center COPs shows
that the City can realize $138,000 in net present value savings (net of all costs of issuing
the Refunding COPs). The City can. also delay and re-amortize a lease payment of
$699,000 due this fiscal year. This can either relieve the City of a budgeted expense in a
fiscal year when revenues are stressed or be reallocated for other purposes.
POLICY IMPLICATIONS
The recolnmendations in this report are consistent with prior Council direction. Staff’s
recommendation to refinance the 1992 Certificates of Participation is based on economic
savings or lower lease payments to relieve pressure on a fund’s commitments is also
consistent with prior refinancing efforts approved by Council.
CMR:444:01 Page 7 of 9
TIMELINE
2001
December 17
December 27
December 28
Resolutions approving issuance of COPs for non-parking area
on Lot S/L and refinancing 1992 Civic Center COPs and
adoption of required financing documents.
Publish Notice of COPs sale
Mail cash payment notices to Assessment District Property
Owners
2002
January 8
January 16
January 28
Bid documents on COPs distributed to underwriters
Bids on COPs received and awarded
Cash payment period ends, determine final bond size, and
distribute financing documents to rating agencies and bond
insurers
January 29
February 4
February 7
February 11 Week
February 28
March 18
April
Receive COPs proceeds
Council adopts resolutions authorizing assessment bonds and
approving required financing documents
Publish notices of assessment bond sale
Ratings presentation on assessment bonds
Bids on assessment bonds received
Assessment Bond closing; bond proceeds received
Construction of garages and non-parking area begins
ENVIRONMENTAL ASSESSMENT
An Environmental Impact Report for the parking structures was prepared as part of the
PC zoning application and was certified by Council on December 20, 1999, by adoption
of Resolution No. 7917.
CMR:444:01 Page 8 of 9
ATTACHMENTS
Attachment A:
Attachment B:
Attachment C:
Attachment D:
Selected Agenda Item and Minutes from Council Meeting of May
14, 2001
Resolution Ordering Further Cash Payments and Directing Actions
With Respect Thereto
Notice-for Mailing on cash payment option
Notice for Publication
PREPARED BY:
Manage’f, Investments and Debt
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
CARL Y~AT¢ ,--’"
Director, Adi}tiinistratix e Services
Assistant City Manager
CMR:444:01 Page 9 of 9
ATTACY[M:ENT A
Agenda posted according to PAMC Section 2.04.070. A binder containing Supporting materials is available in the
Council Chambers on the Friday preceding the meeting.
This meeting will include Council Member Gary Fazzino
teleconferencing from 3801 Connecticut, Washington, D.C. which is
publicly accessible for this purpose.. This agenda shall be posted
in that location.
May 14,
Special Meeting
Council Chambers
2001, 6:00 p.m.
ROLL CALL
CLOSED SESSION
Members~thepublicmay~eaktotheClosedSessionitem(s);threeminutesper~eaker
i.Public Employee Performance Evaluation
Subject: City Attorney Ariel Ca!onne
Authority:Government Code section 54957
ADJOURbq~ENT
ROLL CALL
May 14,
REPORTS OF OFFICIALS
Regular Meeting
Council Chambers
2001, 7:00 p.m.
i.Utilities Strategic Implementation Plan and Associated
Changes to the 20~i-02 Proposed Budget
SPECIAL ORDERS OF THE DAY
2. Youth Council Presentation
ORAL COMMUNICATIONS
Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the
right to limit the Oral Communications period to 30 minutes
COUNCIL MAKES EVERY EFFORT TO COMPLETE ALL AGENDA ITEMS BY 11:30 P.M. PRIOR TO TAKING A BREAK AT
9:30 P.M., COUNCIL WILL REVIEW THE REMAINING AGENDA ITEMS AND DETERMINE IF ANY_ ITE~MS SHOULD BE
POSTPONED TO A FUTURE DATE.
Special Meeting
May 14, 2001
Public Employee Performance Evaluation .....................106
ADJOURAIM~NT: The meeting adjourned at 7:00 p.m ..................106
Regular Meeting .................................................107
i.Utilities Strategfc Implementation Plan and Associated
Changes to the 2001-02 Proposed Budget .....................107
2.Youth Council Presentation .................................107 1
0P~.L COMMUNICATIONS .............................................108
o Ordinance 4695 entitled "Ordinance of the Council of the
City of Palo Alto Amending the Budget for Fiscal Year 2000-
0! for Legal Services for PG&E Bankruptcy Proceedings" . ....109
5.Appointment of Candidates to the Historic Resources Board ..109
o Contract Between the City of Palo Alto Monterey Mechanical
Co., Inc. in the Amount of $69,000 for the F!owmeter
Replacement Project for the Water Quality Control Plan
(Wastewater Treatment Capital Improvement Program 8022) ....109
Contract Between the City of Palo Alto and Royal Roofing
Company, Inc. in the Amount of $59,151 for the Avenidas
Roof Replacement Project (Capital Improvement Program
10006) ...~ .................................................ii0
i0.PUBLIC HEARING: The Palo Alto City Council will consider an
appea! from the September 29, 2000, decision of the
Director of Planning and Community Environment, whereby the
application of William Lee for a Home Improvement Exception
[00-HIE-18] was approved. Approval was granted to al!ow the
construction of a detached two-car garage within a rear-
yard setback at a distance of 71.5 feet from the front
property line and 30.5 feet from the street-side property
line where 75 feet is the minimum distance required from
any street facing property line. The property involved is
an existing single-family residence ........................!!0
05/14/01 92-104
Regular Meeting
May 14, 2001
The City Council of the City of Palo Alto met on this date in
the Counci! Chambers at 7:08 p.m.
PRESENT:Beecham, Burch~ Eakins, Fazzino (te!econferencing from
Washington, D.C.), Kleinberg, Lytle, Mossar, Ojakian,
Wheeler
Mayor Eakins read a letter addressed to her from Congresswoman
Anna Eshoo thanking Mayor Eakins for her letter requesting
support of federal funding for the Children’s Library, the
Intermodal Center, the Arastradero Trail Preserve, and the Storm
Drain Infrastructure. Congresswoman Eshoo’s letter indicated she
formally requested funding from the appropriate members of
Congress and their committees, and she would do everything she
could to make the projects successful.
REPORTS OF OFFICIALS
Utilities Strategic Implementation Plan
Changes to the 2001-02 Proposed Budget
and Associated
Staff requested that the item be removed from the agenda and
reschedu!ed to the May 21, 2001, Regular Counci! meeting.
SPECIAL ORDERS OF THE DAY
2. Youth Council Presentation
Palo Alto Youth Council Member Marissa Huang said the Youth
Council was made up of 15 teen members who represented the
diverse teen voices in the City. The main focus was to enhance
the community by serving as links between adults and teenagers.
The Youth Council addressed the recreational needs of teens in
Palo Alto. Surveys were distributed to students at Gun_n, Palo
Alto, and Castilleja High Schools. In response to the question,
"Is there a need for a Teen center in Palo Alto," 38 percent
said yes, 56 percent said no, and 6 percent did not answer. The
question "Do the recreational activities offered in Palo Alto
fit your needs" 41 percent said yes, 51 percent said no, and 8
percent did not answer. In response to a question on preference
of a Teen Center, 14 percent said yes to a new Teen Center, 77
percent wanted new programs, and 9 percent did not answer.
Palo Alto Youth Council President Christopher Tsai said there
was a push away from a Teen Center and a push toward more
programs. The Youth Council devised a proposa! to lease out the
05/14/01 92-107
proposed Teen Center, and that 75 percent of the revenue from
the lease went to teen programs. The Youth would determine
whether the 75 percent was used for current programs or creation
of new programs. A transition Teen Center was requested at the
Mitchell Park Community Center. During the needs assessment,
popular ideas were brought up which included a Black and White
Bal! for teens, film festival in Paio Alto, and a ski trip to
Bear Valley.
Council Member Burch said the Youth Couhcil came up with a
creative, wonderful idea.
Council Member Kleinberg said the Youth Council’s interest in
having more services dated back to the early 1980s when there
was a tremendous move on the part of the teens to have a Teen
Center. At that time, neighborhoods did not want Teen Centers.
The Youth Council was complimented on its proposal.
Council Member Lytle expressed appreciation to the Youth Council
for the work they did. She asked why the Youth Council
considered only 75 percent of the revenue toward its programs.
Mr. Tsai said the Youth Council felt the 75 percent was a
reasonable amount.
Vice Mayor 0jakian asked how the Youth Council’s proposal fit in
with the City plans.
City Manager Frank Benest said he looked for the Community
Services Department to step forward. The remaining 25 percent
paid for the City’s portion of the Parking Assessment.
Council Member Fazzino asked the Youth council whether they had
any discussion of venues or locations for the type of programs
that were needed.
Mr. Tsai said the current Teen Center was distant from the
centers of teen population such as schools. The Youth Council
wanted to begin implementation of the programs close to the
schools.
No action required.
ORAL COMMUNICATIONS
Dorothy Bender, 591 Military Way, spoke regarding the ground
f!oor retail ordinance.
05/14/01 92-108
ATTACHMENT B
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALO ALTO
ORDERING FURTHERCASH PAYM~NTSAND
DIRECTING ACTIONS WITH RESPECT THERETO
UNIVERSITY AVENUE AREA OFF-STREET PARKING ASSESSMENT DISTRICT
The Counci! (the "Counci!") of the City of Palo Alto (the
~City"), County of Santa Clara, State of California, RESOLVES as
follows:
WHEREAS, this Council has conducted proceedings (the
~Proceedings") under Resolution No.8034, A Resolution of the City
Council of the City of Palo Alto of Intention to Make Acquisitions
and Improvements (the "Resolution of Intention"),under the
Municipal Improvement Act of 19!3 and related laws (the "Act") in
and for the City’s University Avenue Area Off-Street Parking
Assessment District (the "Assessment District")to finance public
parking improvements. (the "Project") as described in the
Resolution of Intention;
WHEREAS, in the Proceedings, after conducting a public
hearing and assessment ballot as prescribed by the Act, this
Council adopted its Resolution No. 8043, A Resolution of the City
Council of the City of Palo Alto adopting Engineer’s Report,
Confirming the Assessment, ordering the Work and Acquisitions and
Directing Actions With Respect Thereto (the "Resolution of
Confirmation");
WHEREAS, the Resolution of Confirmation, among other things,
ordered the actions required to permit owners of properties in the
Assessment District to pay all or a portion of the assessment
levied on their respective properties for a period of not less
than thirty (30) days (the ~Cash Payment Period"), including the
giving of notice thereof as required by the Act.
WHEREAS, the notice under the Resolution of Confirmation
pertained to the Cash Payment Period for the first phase of bonds
for the Project; and
WHEREAS, in preparation for the second phase of the bonds for
the Project~ the Council now intends to provide for a second Cash
Payment Period corresponding to the second phase of the bonds for
the Project.
NOW, THEREFORE, IT IS ORDERED as follows:
!.Cash Payment Ordered.
(a) Cash Payment. Under the Act, this Council hereby
directs that the owners of property within the Assessment
District shall be given written notice of the confirmation of
the assessments and of the recording thereof in the office of
the Superintendent of Streets and of the opportunity of such
owners to pay al! or a portion of the assessments
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FOP<M:
Jones Hall,
A Professional Corporation
By :
phen R. leggio
Bond Counsel
City Manager
Director of Public Works
Director,
Administrative Services
Sr.Assistant City Attorney
-3-
((Ass_Number))
Collection Officer
City of Palo Alto
P.O. Box 50309
Palo Alto, CA 94302
ATTACHMENT C
ASSESSMENT NOTICE
CITY OF PALO ALTO
University Avenue Area Off-Street Parking Assessment District
((Owners_Name))
((Number)) ((Street))
((City)), ((State)) ((Zip))
APN:
Total Assessment ((Final))
Second Phase Assessment ((series_2))
THE CITY OF PALO ALTO GIVES NOTICE that:
1. Assessment History. On March 26, 2001, an assessment to pay for the acquisitions and improvements described in
Resolution of Intention No. 8034, adopted by the City Council of the City for the above assessment district was recorded in the office of
the Superintendent of Streets of the City. The purpose of the assessments is financing public parking facilities. On March 27, 2001,
the City mailed notices to each property in the assessment district of the option to cash pay all or a part of the first phase of the
financing. The City is now starting the second phase of the financing and offers the option to cash pay the rest of the assessments.
2. Assessment Amounts. Please see above. There are two dollar amounts. The first is the total confirmed assessment
for your property. The smaller, second amount is the assessment for the second phase of the financing. It is this second, smaller
amount that may be prepaid now. When the second phase is ready, you will receive another payment option.
3. Prepayment Option. On or before January 28, 2002, you may pay all or a part of the smaller amount of assessment to
the Collection Officer.
If you mail your payment, mail to Collection Officer, City of Palo Alto, P.O Box 50309, Palo Alto, CA 94302.
If you pay in person, make payment to the Revenue Collections Desk, First Floor, City Hall, 250 Hamilton Avenue,
Palo Alto, California.
If you Want to pay now, your payment must be received by January 28, 2002. You do not have to pay now ff you do
not want to. If you chose to pay, please cut off the top of this page and send it with your payment. If you pay all or some of the
assessment now, you will receive a refund equal to the percentage of reserve and discount for the first bond issue. (For example, if
the reserve and discount total 10% of the bond issue, you will be refunded 10% of your payment.) The refund will be made after the
bonds are issued.
4. Bonds. If you do not pay by the date in 3. above, bonds will be issued to represent the unpaid portions of
assessments. The bonds will be issued under the Improvement Bond Act of 1915; will mature over a period of no more than 30 years;
and will bear interest at the rate estimated to be approximately 6.5% per year. The final interest rate and term of the bonds will be
determined by the bond sale. Installments of principal and interest on the bonds will be collected with your property tax bill.
5. Payment After Bonds. After bonds are issued, assessment may be paid off by paying any outstanding
delinquencies and penalties, the remaining principal amount or $5,000 increments of its, the applicable redemption premium, interest
to the next available bond call date and an administrative fee fixed by the City
6.Questions. If you have any questions about the financing, this notice or your assessments, please contact:
, City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA; Telephone (650) __-
e-mail
Dated as of December 28, 2001 Carl Yeats,
Director of Administrative Services
ATTACHMENT D
CITY OF PALO ALTO
University Avenue Area Off-Street Parking Assessment District
ASSESSMENT NOTICE
that:
The City of Palo Alto, under Section 10404 of the Streets and Highways Code of California, gives notice
1. On March 26, 2001, an assessment to pay for the acquisitions and improvements described in
Resolution of Intention No.8034, adopted by the City Council of the City for the above assessment district was
recorded in the office of the Superintendent of Streets of the City.
2. The amount of assessment subject to prepayment now is the amount required for the second phase
of bond financing for the assessment district. The second phase of bond issuance will require a separate notice of
prepayment option for the remaining amount of assessment.
3. On or before January 28, 2002, the assessment for the second phase of bond financing may be
paid, in all or in part to the collection officer who is the Director of Administrative Services, City of Pa!o Alto, 250
Hamilton Avenue, Palo Alto, CA 94303.
4. If not paid by the date in 3 above, bonds will be issued to represent the unpaid portions of
assessments. The bonds will be issued under the Improvement Bond Act of 1915, will mature over a period of no
more than 30 years. InstaLlments of principal and interest on the bonds will be collected with property tax bills.
Dated as of December 28, 2001 Director of Administrative Services
City of Palo Alto