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Home My WebLink About0532.000• f I - ~, . . -'. . •. ~ ',' 'It OCtober 11, 1990 THE HONORABLE CITY COUNCIL Palo Alto l California o 4 Undi:!rqrqund District No. 32. Middlefield Road, Property OWners Electing to Pay Underground conversions Costs OVer a FeriQd of Years Members of the Council:: Report. in Brief: At its meeting of June 4~ 1990 1 the Council adopted Ordinance NOa 3963 creating Underqround utility District No. 32 in the Middlefield Road area. The ordinan..::e included notice that any property owner located within the district. had the option 0:' paying the cost of service conversion over a period of ten years with interest" A total of 59 propert.y owners selected the deferred payment plan. This report vas prepared in order to proceed with assessment of the 59 properties and the funding of the deferred costs of the Middlefield Road cooversions. Background and Discussion The Middlefield Road underground project is a general benefit unde.rqround. district, with the C:ity paying a11 costs excep.t the individual property underground service conversions. Fifty-nine property owners 'have op,ted for the deferred pal"'lnent plan to pay their individual conversion costs, totaling $170,591. Assessments will be secured by liens on each property for the ten year term of the loan. Repayment to the city wi11 be made through the owner's property tax bills. Interest rates ~ere established at three.-quarters of 1 percent above the NeW' york Bond Buyer Index for the week preceeding adopt.ion of the Ordir-ance forming the underground district. Using this rate guideline, as mandated in the Palo Alto Municipal Code, the interest rate for the Middlefield Road loans will be 8.25 percent. A $5~ loan processing fee is added to each assessment. On August 21, 19B4, Council approved the funding of individual electric underground connections from the Electric system Improvement. Reserve, thereby esta.blishinq a Reserve for Underground Connections. As of October 1, 1990, the Electric SIR balance ~as CKR:SJ2:0 ,. \ I t I t • i ! ~ I I I • . ;~ ", , \ .\ ; \ , \ " I.' . I i o h.5 .UUon and th .. R .... .,"" .. for underground C<:>1lJ:Iecticns "as $444.0«>. This is the ninth underground district fOOled sinc<: Coun<::ll authorized the use of the Electric Syst.elJl Improvement Reserve to pay for individual property s~rvlce conve~sions. This lIethod: of assisting with underground. s&rvi..ce connection costs has proven to be safe, effective. and popular. Reeompendat.iM Statf reo::n:omems th..! (' Council adopt the att.ached Resolution determining propertie~ electin9 to pay costs over .a period of years~ determining and classifying-unpaid assessments, and funding loans to p~operty owners from the Reserve for Underground Connect i oms .. Respectfully sUb~itted, .!J(~ ,-' r:, L ;j~l:E_}~~.~~_~; !lONNA HILDEN Power Engineer ", f / o UNDERGROUND UTXLI~Y DXSTRICT '32 Xi641efield Read Prop ert 7 Parcel .0. Ac!dress owner Peter J. Clark 120-01-010 187 Byron Herman A. & Georqina Bensen 120-05-014 661 Channing Brian Beckwith 00)-02-042 723 Hamilton Barbara B. Saria 120-02-008 660 Hawthorne Jay Shaw-120-08-001 666 Kellogg David P .. ~ Kristopher D. Callaban 003-43-049 70:0 Kingsley Dennis Levett 003-43-05<l 703-707 Kingsley Vidal L. , Herminia H .. Garcia OG3-41-051 711 Xingsley Jeffery A .. ~ Ann E. Hendy 120-06-036 690 Lincoln 661 Lytton Assoc. 120-02-011 661 Lytton Leslie L. and Nancy Do<>li ttl e 120-07-019 671 :Melville Donald B. 'fhomas 120-01-0'03 122 Kiddlefield Joseph y. Lane OO)-01-03·a 125 "Middlefield Eli. al:>eth A. stump 120-01-006 140-142 Middlefield Kurt , Maria Habura 120-01-0'08 154-156-158 Mi6dlefield Warren X. I Patricia A. Becker 120-01-~O}9 164-166-168 MJddlefield Kenneth J .. Stang 0'03-01-036 201 Middlefield Assessment Principal 3,216 2~653 2,312 2.1 332 2,559 2 /815 2,,4.32 2,460 1 ... 921 4 .. 294 1,116 2,666 2,,411 2,81S 2 ... 9.34- 2,,767 2.,4-29 - . --' --:---. --,--~ . ~-. John L. , Stephanie Chapple 120-02-010 Andrea R. Lichter 120-02-011 Timothy Rondthaler 120-02-012 Dianne Erickson- arown~ et &1 003-01-013 Steve Francl 120-02-015 Dennis Levett 003-01-076 Arthur L. , Ruth A. Barker 003-01-070 Phoenix Investment Grp. O~3-01-068 John Flather " Jacqueline Roose~ et al 120-02-075 Kargaret H. Vesey 0'03-02-023" Mary M. Wong 120-03-048 Mental Research Inst. 003-01-048 Hare, Brewer "- Kelley, Inc. 120-03-049 B=ian Burns , Sylvia Grainger, et al 003-)2-026 Kristine WoolhQUse 003-32-025 Bruce N. Baker 003-32-089 P~ter L. Galison & Caroline A. Jones, et al 120-04-016 Robert E. and Mary L. Cooper Haralyce McCarville Middlefield Associates Bruno N .. Huzzi 120-04-017 CXl3-32-044 003-)2-094 120-05-012 ,,' ,- 204 Middlefield 212 Middlefield 218 Middlefield 2lS Middlefield 242 Middlefield 251 Middlefield 325-329 Middlefield 343-345 KiddIe field 352 Middlefield 435 Middle.field 55.0 Middlefield 555 Middlefield 576 Middletield 615 Middlefield 623 :KiddIe field 633 )!iOdlefield 640 Middlefield -660 Middletield 711 Kiddlefield 85) Middlefield aao-aas Middlefield 2,268 2 .. 295 2 .. 974 2-,2.60 2,6·65 2.,513 2 .. 624 2,450 2 .. 646 1.,831 2,494 1,167 3,175 1,121 2.,590 2~7S5 1 .. 34) 1. tal • - I).A. i Kathleen oxborrow Nellie M. Willett i Claire on-:U-Oll A. Tir~ey, Trustee 003-))-012 Georqe B~ Justice, Tr~ 003-33-05~ Bryn • Barbara H. OStby 003-33-0S1 George A. Nico~ , Inqe Infante, et a1 120-06-037 John i Jean 110 003-43-030 Craig J. i Karen A. Coombs 003-43-029 Tfiomas J. Smith 10 Keth B. Geeslin~ et a1 OQ3-43-021 Olgerts Rubenis, Tr. 120-01-013 Edward E. , Jean S. Loveless, Truste~ 12Q-01-01( Fatri~ia A. Kay ~20-al-alS Lawrence W.. and Can J '" Brown, et al 120-07-016 Milton R. , JUdith K. Grinberg. 120-07-018 ~omas R. and Gail H. Jack 120-C7-D~9 Leonard F.. , Brenda L.. Cipriano Randa 11 " SUsan W .. Ileustaedter Jack & Ann F. Margolis Mahendra X. , Linda A. Kanl James W. , Susan B. Stewart "" 120-08-014 120-08-015 120-08-018 120-08-019 120-08-021 ~<i~~~~! ,:-\ " ,,c., / ., 905 Kiddlefield 925 Middlefield 1003-1007 Middlefield 1015 Middlefield 1110 Middlefield 1119 Middlefield 1.127 Kiddlefield 114S-USl Middlefield 1204 Middlefield 1212 Middlefield 121$ Middlefield 1226 Middlefield 1254 Middlefield 1338 Middlefield 1.4.60 Middlefield 1480 Middlefield 1520 Middlefield 1.530 Kiddlefield 155" Mi~lefield • . , \ 2,,~S8 2,564 5,,5415 2,.637 2 .. 429 2,,789 6,103 2,,505 2,,661 2 ... 540 2 .. 322 2,,481 2,,384 2,196 • 2 ... 411 . , • , .) '. i '.: . , Stephen J. , Jackqueline Osborn 003-01-039 no university Assoc. 003-02-047 710 Palo Alto 720 University 2,513 7,85() Assessment T~tal $170,591 I , , , ". , " - o RESOLt,"l'ION NO. RESOUJTION OF TIOC COUNCIL OF T!!E CITY OF PALO ALTO DETERMINING PROPERTIES ELECTING TO PAY COST OVER A PERIOD OF YEARS, DETERMINING AND CLASSIFYING UNPAID ASSESSMENTS, AND FUNDING LOANS TO PROPERT~ OIfflERS FROM THE ELECTRIC SYSTEM IM?ROVEI'IENT RESERVE UNDERGROUND UTILITIES CONVERSION UNDERGROUND UTILIT'l ASSESSMENT DISTRICT 32 The Council of the City of Palo ~1 to does RESOLVE as follows: SECTION 1. The Council of the City of Palo Alto amended Section 12~16.020 cf Chapter 12.16 of Title 12 of the Palo Alto Municipal Code by establishing Underground utility District No. 32 on .June 4 .. 19'90 .. by adopting .ordinance No. 3963. SECTION' 2. The .owners of certain properties have exercised the option offered in said Ordinance and in Section 12.16.092 of said Code.. to pay the cost over a period of years with such obligation secured by special assessments~ A list of the proper ties owned by persons ~o bave exercised the option to pay the costs of converting their electric service connection t.o under ground locations over the period of ten (10) years as indicated thereon is attached hereto as Exhibit -A-and hereby made a part hereof. §.f:_r,;::.T...IQ!:l-----1. It appears to this Council that in its proceedings ur~er and pursuant to Resolution of Intention to form said District .. being Resolution No.. 6978, adopted on Karch 26, 1990, . the assessments propc.sed to be levied should be made to mature over a period of ten (10J years; SECTION 4. The public convenience and necessity required that the proceedings heretofore taken with respect to said llnderground utility districts beIng changed and. modified to provIde that the rate of interest. to be paid by said owners of said properties shall be three quarters of one percent (3/4 of 1\) in excess of the rate shown in the New York ,Bond Buyer Index of Municipal Bond Average YiElds for-20 bond:s far the week nex:t preceding the day on which the Underground Districts were formed. SECTION ...... ~. The assessments now remaining unpaid are as shown on Exhibit wA-attached hereto and by this reference made a part hereof, and that the ag.qregate amount thereof is ~110,S91.0,O, and includes a $5-0 loan processing fee per assessment. Th!s Council bereby determines that the ~~ers of th~ properties shQ~~ on Exhibit -A-hereto ~ave elected to pay the cost of converting electric service connections to underground locations over the period of ten {lO} years and that said costs shall represent the unpaid ~ssessments in these proceedings. 1 " • • , , ~ -"-, , -. , , " .. ·· ... ;;.·· .• 1 .~ - , '. -..:..._~!IO~ __ lsI<:., _____ f:"" o SECTION 6. The City shall advance all lo~ns to assessed property owners from available funds.. and shall succeed to all rigbts under the assess:nent and to all rights 'Which would have accrued if bonds had been issued as provided in Section 13.04.170(i) of Chapter 13.04 of Title 13 of the Palo Alto Xunicipal Code. Loans for t.he. Underground District will be funded to the assessed property owners from the Electric System Improve zent Reserve. (SIR). The total estimated principal amount to be funded by the SIR will be $17(), 59LOO pending any changes in actual lDoneys loa.ned. The principal pl1JS interest and loan processing fee shall be amortized and repaid through the cwner's property taxes fo~ a period of ten (10) years. The loans shall bear interest from the latest of the date of completion and energizing of underground electrical facilities. or the date of disbursement of the loan. The rate of interest vill be 8~ 25 percent. Principal payments will be refunded to the Reserve for Underqround service connections and interest will be added to the Electric System Improvement Reserve. SECTION 7. A tee of $50 is added to the principal amount of each loan for loan processing. r)lTRO!)(JCED AND PASSED: ]>YES: NCES: ABSENT: ABSTENTIONS: A'l'TEST: APPROVED: City Clerk APPROVED AS ~O FORK: city Attorne.y City Manager ofreCtor of Finance 2 , , • -,. I I· i. t ~ , l I: t ! , ~ ~ ¥ ~" c , f. , ! i- t-. ;