HomeMy WebLinkAbout2000-03-27 City Council (12)City of Palo Alto
City Manager’s Report
2
TO:HONORABLE CITY COUNCIL
FROM :CITY MANAGER DEPARTMENT: UTILITIES
AGENDA DATE:
SUBJECT:
MARCH 27, 2000 CMR:183:00
RESOLUTIONDETERMININGUNDERGROUNDDISTRICTNO.
37 PROPERTY OWNERS WHO ELECT TO PAY
UNDERGROUND CONVERSION COSTS OVER A PERIOD OF
YEARS
RECOMMENDATION
Staff recommends that Council approve and authorize the Mayor to execute the attached
Resolution determining properties electing to pay conversion costs over a period of years,
determining and classifying unpaid assessments, and funding loans to property owners from the
Reserve for Underground Connections.
BACKGROUND
At its meeting of April 7, 1997, Council adopted Ordinance No. 4408 creating Underground
Utility District No. 37 in the Embarcadero/Middlefield Roads area. The ordinance provided
notice that any property owner located within the district had the option of paying the cost of
service conversion over a period often years, with interest. A total of 48 of the 232 property
owners in the district selected the deferred payment plan. The underground project is a general
benefit underground district with the City paying all costs except the individual property
underground service conversions.
DISCUSSION
The conversion costs for the 48 property owners who have chosen the deferred payment plan
total $251,277. The original estimates are two to three years old, as this project was delayed
due to insufficient funds initially. Therefore, to compensate for the inflation over that period
of time, 20 percent has been added to the original estimated cost of each property to offset the
estimated increase in materials and labor costs. The higher costs are primarily due to the
current demand for construction work. The remaining property owners chose to be responsible
for their own financial arrangements.
CMR:183:00 Page 1 of 2
Assessments will be secured by liens on each property for the ten-year term of the loan.
Repayment to the City will be made through the owner’s property tax bills. As mandated in the
Palo Alto Municipal Code, interest rates were established the week preceding adoption of the
ordinance forming the underground district. Using this rate guideline, the interest rate for the
loans will be 6.63 percent. A $50.00 loan processing fee is added to each assessment.
RESOURCE IMPACT
On August 21, 1984, Council approved the funding of individual electric connections from the
Electric System Improvement Reserve, thereby establishing the Reserve for Underground
Connections. As of June 30, 1999, the balance in the Reserve for Underground Connections
was $600,000.
POLICY IMPLICATIONS
This report does not represent any change to existing City policies,.
ENVIRONMENTAL REVIEW
This proj ect is categorically exempt from California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment "A":
Attachment "B":
Resolution
Property Owner List
PREPARED BY: Gopal Jagannath, Sager Farraj, Tomm Marshall
DEPARTMENT HEAD:
J~ ULRICH
DireCtor of Utilities
CITY MANAGER APPROVAL:
HARRISON
Assistant City Manager
CNR: i83 : 00 Page 2 of 2
PROPERTY OWNER(S)
UNDERGROUND UTILITY DISTRICT NO. 37
EMBARCADERO/MIDDLEFIELD ROADS
PARCEL NO.ADDRESS
ASSESMENT
PRINCIPAL
Hilary W. Donahue Trust
David and Nancy Kalkbremer
Sheldon D. and Nancy A. Sicotte
Ronald Z. Hofffnan
Harvey and Rose Lash
Philip E. Bohaboy
Eric and Shirleen Willis
H. John Togashi
Hamad and Laila Alghanim
Albert Azcarate
Susan McDonnell
Thomas and Jean Kirsch
Michael and Shirley Klyrm
David and Carolyn Lougee
Scott P. Spector and Elizabeth H.
Ward
Thomas R. Jaworowski
Ted M. Brown and Lynda G.
Brown
Mabel G. Holt
Helen Menz
Harvey and Susan Dondershine
Marc and Elaine Gradman
David H. and Christine Campen
Douglas H. and Sue Barton
William and Linda Gargiulo
Jerome W. Scheele
Kim L. Fundenberg
Harvard E. Wilson, Trustee
Nelson L. Jensen
Eric and Kathy Nordman
Kendra G. Anderson
Valorie Beer ~
Irene Hem, Trustee
Richard N. and Catherine J.
Norfleet
Richard K. Sibley
Jeffrey and Judith Spirn
Florentino and Cathy Cortes
Kenneth W. and Mildred H.
Nelson Family Trust
Lillian Berland
Kon-E Lu and Siu-Hua Shu Lu
Barbara A. Whittingham
Peggy M. Clark
Clayton Bavor and Nancy
Bavor Trust
Marilyn E. Farmer
Burr and Reva Frauman
Irene Davidson
Rosalie Shepherd
Michael and Annette Flicker
Alfonso Castillo and Mary Law
003-56-024 1884 Bret Harte 6,024.00
124-03-030 2031 Byron 4,075.20124-03-029 2047 Byron 7,575.60
124-04-009 2181 Byron 4,873.20
124-05-022 2309 Byron 5,064.00124-05-021 2323 Byron 5,678.40124-05-018 2361 Byron 4,978.80003-56-033 836 Embarcadero 3,872.40.
003-56-019 846 Embarcadero 3,780.00003-56-001 860 Embarcadero 4,707.60
003-58-028 1715 Fulton 6,428.40003-58-035 1748 Fulton 5,080.80
003-58-023 1775 Fulton 7,755.60003-58-020 1811 Fulton 6,994.80
003-58-055 1830 Fulton 4,762.80003-58-001 1700 Guinda 4,777.20
003-56-080 1711 Guinda
003-58-064 1740 Guinda
003-56-068 1885 Guinda
003-56-038 1844 Mark Twain
003-56-027 1885 Mark Twain
003-56-042 1892 Mark Twain
124-02-012 1630 Middlefield
124-02-076 1730 Middlefield
124-02-048 1736 Middlefield
003-58-041 1753 Middlefield
124-03-018 1988 Middlefield
124-03-024 2080 Middlefield
124-04-005 2150 Middlefield
124-04-007"2170 Middlefield
124-05-012 2352 Middlefield
003-6~1-070 2381 Middlefield
4,822.80.
5,712.00
6,116.40
5,031.60
6,886.80
5,803.20
6,346.80
5,044.80
5,400.00
5,317.20
5,731.20
4,978.80
4,770.00
5,174.40
5,413.20.
3,339.60
003-56-055 1710 Newell 5,468.40
003-56-056 1722 Newell 5,794.80003-56-053 1725 Newell 4,592.40
003-56-059 1780 Newell 5,019.60
003-56-050 1801 Newell 4,692.00003-56-063 1840 Newell 5,072.40003-56-065 1870 Newell 6,339.60124-05-015 699 Oregon 3,850.00124-03-037 660 Seale 4,688.40
124-03-013 691 Seale 4,150.80003-56-067 777 Seale 4,083.60003-56-066 795 Seale 5,246.40003-56-082 885 Seale 4,838.40
124-02-049 669 Tennyson 5,010.00003-58-063 702 Tennnyson 4,994.40003-58-039 747 Tennyson 5,118.00
$251,276.80