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HomeMy WebLinkAboutStaff report 13427 City of Palo Alto (ID # 13427) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/18/2021 City of Palo Alto Page 1 Summary Title: Williamson Act Contract Renewal (2021) Title: Review and Approval of the Annual Williamson Act Contract Renewals Within Palo Alto City Limits (2021) From: City Manager Lead Department: Planning and Development Services Recommendation: Staff recommends that the City Council take the following actions: 1. Find that the project is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15317; and 2. Approve the renewal of Williamson Act contracts listed in Attachment A. Executive Summary: The City of Palo Alto currently has 23 properties (350.05 acres of land) in contract under the Williamson Act. The proposed Council action would extend these 23 existing Williamson Act contracts between the City and landowners for another ten-year term on starting January 1, 2022. The City did not receive any request for nonrenewal during this reporting cycle. Following Council action, the City will submit its annual report to the California Department of Conservation by October 31, 2021. Background: The California Land Conservation Act of 1965, commonly known as the Williamson Act, is a State program. The program discourages agricultural lands from being converted to urban uses, preserves open space, and promotes efficient urban growth patterns. Under the Williamson Act, private landowners can voluntarily restrict their land to agricultural and compatible open- space land uses under a minimum ten-year rolling term contract. These contracts are administered by the respective jurisdictions. In return, the State assesses the restricted parcels for property taxes at a rate consistent with their actual use or generated income, rather than 9 Packet Pg. 140 City of Palo Alto Page 2 potential market value. The program provides property tax relief to owners of agricultural land who agree to limit the use of their property to agricultural or other approved compatible uses. On July 24, 1974, the City adopted Ordinance No. 2663 to institute rules for both establishing and administering Williamson Act contracts for Palo Alto properties. The rules regarding administration of established contracts limit the allowable uses of the property to what is described in the contract. The regulations also provide that the contract must remain in place when a property is sold, ensuring that the new owners are subject to the same use restrictions. The contracts are for a rolling ten-year term with a renewal date of January 1 each year, at which time one year is added to the contract term. The term would remain a total of ten years unless the City or property owner provides notice of non-renewal. The California Department of Conservation’s Williamson Act Program requires participating cities and counties to complete and submit applications for an Open Space Subvention Act1 payment per Government Code section 16144. The code states: "On or before October 31 each year, the governing body of each county, city, or city and county shall report to the Secretary of the Resources Agency the number of acres of land under its regulatory jurisdiction which qualify for state payments pursuant to the various categories enumerated in Section 16142, together with supporting documentation as the secretary by regulation may require.” While the State no longer provides meaningful subvention payments2 to local agencies, this reporting requirement remains in the law. Every year, at least 80 days prior to the January 1 renewal date, the City Council reviews the contracts. Also, at that time, Council may initiate a notice of non-renewal for any contract or approve a notice of non-renewal submitted by a landowner. If the Council takes such action, then that contract does not renew on January 1 and terminates ten years later. Under certain conditions, the Council may also approve a landowner’s request to cancel a contract. Should 1 Working in conjunction with the Williamson Act, the Open-Space Subvention Act provides for the partial reimbursement of property tax revenue lost as a result of participation in the program to local governments. Cities and counties are eligible to receive $5 per acre of prime agricultural land enrolled in the program and $1 per acre of non-prime land. 2 A subvention payment is paid to the local governments to offset loss of property tax revenue due to lower assessments for Williamson Act parcels. The amount of the state subvention to localities is based on the amount and type of land under contract. The Legislature suspended subvention payments in FY 2010-11 and has not reinstated them. 9 Packet Pg. 141 City of Palo Alto Page 3 Council not approve a notice of non-renewal or a cancellation, the contract automatically renews for the ten-year term each January 1. Discussion: The Williamson Act Property Report for the calendar year 2021 (Attachment A) includes information on the 23 existing parcels in Palo Alto currently under contract, as well as parcels undergoing the process of non-renewal. Attachment A lists 2021 assessed land values, acreages, and the land class (prime and non-prime land) for these parcels. Attachment B is a map showing the locations of these individual parcels. Properties Under Contract Renewal The owners of all 23 properties are renewing their contracts with the City for another ten-year term, starting from January 1, 2022. Of the 23 contracts, the privately-operated Palo Alto Hills Golf and Country Club is not eligible for tax benefits. Although this golf course is a permitted use, only golf courses that are open to the public and charge minimal green fees are eligible for tax benefits. A total of 350 acres of land are under Williamson Act contracts in the City. Approximately 42% of this land (147 acres) is defined as prime land with a Class I or Class II natural resource conservation service rating. Class I or II lands are considered to have the features to sustain long-term agricultural production. Private individuals own about 70% of the land under contract. Stanford University Board of Trustee owns another 27%, while City of Palo Alto owns the remaining three percent. The Williamson Act Status Report 2016-173, published by California Department of Conservation in August 2019, provides a detailed report of all lands enrolled in the program throughout the state of California from January 1, 2016 through December 31, 2017. Properties Under Contract Non-Renewal There were no applications for Williamson Act contract non-renewal filed with the City between November 1, 2020 through August 1, 2021. At present, there are two parcels, previously approved for non-renewal by the Council (in 2014 and 2016), that are undergoing the ten-year non-renewal process for termination. The two parcels will reach the end of their remaining terms on December 31, 2024 and 2026 respectively (see Attachment A for parcel details). 3 https://www.conservation.ca.gov/dlrp/wa/Documents/stats_reports/2018%20WA%20Status%20Report.pdf 9 Packet Pg. 142 City of Palo Alto Page 4 Policy Implications: The recommended action implements Ordinance No. 2663 regarding the administration of the Williamson Act for Palo Alto properties. The Williamson Act program complies with the goals of the Natural Environment Element of the City’s Comprehensive Plan. The Natural Environment Element encourages protection, and conservation of Palo Alto’s open space, natural resources and ecosystems. Program N1.3.1 of Goal N-1 specifically supports preservation of Palo Alto’s Williamson Act agricultural preserves. Resource Impacts: The City does not receive any property tax revenue for those parcels enrolled in the Williamson Act program. The State of California bases property tax assessment for Williamson Act parcels on a rate consistent with the actual land use or generated income, rather than its potential market value. Because of this method of assessment, the City does not receive market value tax revenue for these properties. Based on data collected from the County Assessor’s Office, the City would have received approximately $15,875 in tax revenue if the parcels were not under Williamson Act contracts. Historically, the City received approximately $1,000 a year in subvention payments from the State to partially offset the foregone revenue. However, the State suspended funding for these payments since 2011. The Assembly Bill 1265 allowed participating cities and counties to recapture ten percent (10%) of the benefits; however, the implementation of this provision is generally only cost effective for cities and counties that have significant acreage under contract. Timeline: This is an annual report due to the California Department of Conservation by October 31 of each year. Stakeholder Engagement: This is a required annual reporting to the Departments of Conservation. The City does not typically perform public outreach or contact affected property owners unless changes are initiated by the property owners. This type of reporting does not require any additional public engagement. Environmental Review: The proposed project is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15317 (Open Space Contracts or Easements) of the CEQA Guidelines. 9 Packet Pg. 143 City of Palo Alto Page 5 Attachments: Attachment9.a: Attachment A: List of Williamson Act Properties, 2021 (PDF) Attachment9.b: Attachment B: Williamson Act Parcels Map, 2021 (PDF) 9 Packet Pg. 144 Number APN Street Name Full Address Owner Name Williamson Act Land Ownership Zoning Acreage after Deducting Homesite Exclusion Homesite Exclusion Land Class Contract Start Date Contract Status Assessed Land Value 20211 (Assessed Information as of 6/30/2021) Assessed Land Value 20201 (Assessed Information as of 6/30/2020) Assessed Land Value 20191 1 120-31-0012 El Camino Real 103 El Camino Real Leland Stanford Jr., Univ. Board of Trustees Stanford University Land PF 0.72 No acreage deducted Prime Unknown Unchanged; contract will continue for at least another 10 years. $12,988 $12,266 $11,621 2 120-31-0092 El Camino Real 103 El Camino Real Leland Stanford Jr., Univ. Board of Trustees Stanford University Land PF 10.00 No acreage deducted Prime Unknown Unchanged; contract will continue for at least another 10 years. $180,705 $170,666 $161,684 3 142-16-052 Coyote Hill Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC (D)36.02 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $17,421 $16,453 $15,587 4 142-16-057 Coyote Hill Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)15.33 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $9,605 $9,072 $8,594 5 142-16-064 Deer Creek Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)4.04 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $2,964 $2,799 $2,652 6 142-16-065 Deer Creek Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)16.70 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $10,411 $9,833 $9,315 7 142-16-069 Coyote Hill Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)12.48 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $7,929 $7,488 $7,094 List of Parcels under Williamson Act Contract to Renew on January 1, 2022 ATTACHMENT A Page 1 of 4 9.a Packet Pg. 145 Number APN Street Name Full Address Owner Name Williamson Act Land Ownership Zoning Acreage after Deducting Homesite Exclusion Homesite Exclusion Land Class Contract Start Date Contract Status Assessed Land Value 20211 (Assessed Information as of 6/30/2021) Assessed Land Value 20201 (Assessed Information as of 6/30/2020) Assessed Land Value 20191 8 182-33-0143 Arastradero Rd 1525 Arastrader o Rd City of Palo Alto City of Palo Alto Land PF 11.42 No acreage deducted Prime Unknown Unchanged; contract will continue for at least another 10 years. $0 $0 $0 9 182-35-008 Alexis Dr Alexis Dr Palo Alto Hills Golf and Country Club, Inc. Private Ownership OS 5.52 No acreage deducted Prime 5/1/1973 Unchanged; contract will continue for at least another 10 years. $56,600 $56,020 $54,992 10 182-35-035 Alexis Dr 3000 Alexis Dr Palo Alto Hills Golf and Country Club, Inc. Private Ownership OS 119.92 No acreage deducted Prime 5/1/1973 Unchanged; contract will continue for at least another 10 years. $1,559,988 $1,543,993 $1,513,719 11 351-05-024 Page Mill Rd 3845 Page Mill Rd Judith A. Block Trustee Private Ownership OS 7.72 One acre deducted for homesite Non Prime 2/16/1976 Unchanged; contract will continue for at least another 10 years. $57,145 $56,535 $55,410 12 351-05-042 Page Mill Rd 3837 Page Mill Rd David P. and Cynthia Lautzenheiser Trustee Private Ownership OS 9.00 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $434,050 $429,571 $421,128 13 351-05-043 Page Mill Rd No Street Number Richard D. Guhse Trustee Private Ownership OS 19.01 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,411 $1,333 $1,263 14 351-05-044 Page Mill Rd 3905 Page Mill Rd Michael R. Lowry Private Ownership OS 5.43 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $198,854 $196,815 $192,956 15 351-05-045 Page Mill Rd 3895 Page Mill Rd Marc and Lesley Wilkinson Private Ownership OS 9.00 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,137,647 $1,125,982 $1,103,904 Page 2 of 4 9.a Packet Pg. 146 Number APN Street Name Full Address Owner Name Williamson Act Land Ownership Zoning Acreage after Deducting Homesite Exclusion Homesite Exclusion Land Class Contract Start Date Contract Status Assessed Land Value 20211 (Assessed Information as of 6/30/2021) Assessed Land Value 20201 (Assessed Information as of 6/30/2020) Assessed Land Value 20191 16 351-05-046 Page Mill Rd 3885 Page Mill Rd William W. and Sharon T. Luciw Trustee Private Ownership OS 7.45 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,136,471 $1,124,795 $1,102,725 17 351-05-047 Page Mill Rd 3875 Page Mill Rd Richard D. Kniss Trustee & Et Al Private Ownership OS 10.00 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $705 $666 $631 18 351-05-048 Page Mill Rd 3865 Page Mill Rd Grace Carland Trustee Private Ownership OS 9.00 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $39,306 $38,875 $38,094 19 351-05-049 Page Mill Rd 3855 Page Mill Rd Patrick K. Suppes Private Ownership OS 10.00 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $566,399 $560,592 $549,600 20 351-12-062 Skyline Blvd 5061 Skyline Blvd Rogers Noah Private Ownership OS 10.39 No acerage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $223,058 $220,735 $216,175 21 351-12-063 Skyline Blvd 5065 Skyline Blvd Robert Schulte Trustee Et al Private Ownership OS 11.35 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $523,314 $517,949 $507,794 22 351-12-066 Skyline Blvd 2287 Skyline Blvd Robert Schulte Trustee Et al Private Ownership OS -0.76 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $30 $28 $27 23 351-25-015 Page Mill Rd 4201 Page Mill Rd Bruce A Leak Private Ownership OS 10.31 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,740,820 $1,722,842 $1,688,974 Page 3 of 4 9.a Packet Pg. 147 Number APN Street Name Full Address Owner Name Williamson Act Land Ownership Zoning Acreage after Deducting Homesite Exclusion Homesite Exclusion Land Class Contract Start Date Contract Status Assessed Land Value 20211 (Assessed Information as of 6/30/2021) Assessed Land Value 20201 (Assessed Information as of 6/30/2020) Assessed Land Value 20191 24 351-12-006 Skyline Blvd 1405 Skyline Blvd Midpeninsula Regional Open Space District Midpeninsula Regional Open Space District OS 138.59 Non Prime 2/26/1973 Contract Terminates 12/31/24 25 351-05-050 Page Mill Rd 3849 Page Mill Rd Jeffrey A. and Mary L. Thomas Private Ownership OS 10 Non Prime 2/7/1977 Contract Terminates 12/31/26 Source: City of Palo Alto, Williamson Act Parcel Database 2021. Note 1 Note 2 Note 3 List of Parcels undergoing Non-Renewal Process Santa Clara County Assessors Office, Website:https://www.sccassessor.org/index.php/online-services/property-search/real-property The City of Palo Alto leases this land for public use; however, it is privately owned. Value not assessed because land is owned by public agency. Page 4 of 4 9.a Packet Pg. 148 Arastradero Lake Felt Lake Boronda Lake 351-12-006 351-05-050 HeritagePark Foothills Park Los Trancos Open Space Preserve Monte Bello Open Space Preserve Upper Stevens Creek Canyon County Park Skyline Ridge Open Space Preserve Long Ridge Open SP Russian Ridge Open Space Preserve Coal Creek Open Space Preserve Jasper Ridge Biological Preserve Rancho San Antonio Open Space Preserve Palo Alto Baylands Nature Preserve Foothill Open Space Preserve Arastradero Preserve Cameron Park Weisshaar Park Mayflield Park Peers Park El Palo Alto Park Lytton Plaza CogswellPlaza Scott Park Kellogg Park Bol Park Rinconada Park Bowden Park Johnson Park Eleanor Pardee Park Boulware Park Terman Park Robles Park Monroe Park Mitchell Park D Jesus Ramos Park Hoover Park Greer Park Baylands Atheletic Byxbee Park Bowling Green Henry Seale Park Sarah Wallis Park Werry Park Juana Briones Park Esther Clark Park WilliamsPark Stanford/Palo Alto Community Playing Fields San Antonio Rd 280 B o ule v ard Alameda de las Pulgas Sa nd Hi l l R o a d 2 8 0 Junipe r o Serra Boulevard P a ge Mi l l Road Ar a s t ra d er o R o ad El Cami n o R e a l San Antonio Avenue Cha r l e s t o n R o a d G 5 M o n t e B e l l o R o ad MoodyRoad A l t a m on t Roa d Oregon Expr e ssway Middlefie l d R oad Univers 1 0 1 Al m a Street l A l p i n e R o a d Foothill Expre s s w a y H i g h w a y 2 8 0 Lo s Trancos Road Hi llvi e w East Bayshore W est Bayshore Fabian El M onte R oad Sand Hill Road Road MillPage Skyline Emb a rc a der o R o a d StanfordUniversity Park Mountain View Los AltosLos Altos Hills Santa Clara County San Mateo County Portola Valley El Camino Park This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Williamson Act Parcels Under Contract for 2021 Parcels with Non Renewal Notices Approved 0'7000' Williamson Act Parcels 2021 CITY O F PALO A L TO IN C O R P O RATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto ATTACHMENT B 9.b Packet Pg. 149