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Home My WebLink About0551.091.. --"'--........... December 12, 1991 THE HONORABLE CITY COUNCIL Palo Alto, california 5 Underground pistrict No. 33. PowntoWD III. P~operty OWners Electing to PAY Ynderground Conversions costs oyer a Period of Years Members of the Council~ Bew:t in Brief; At its meeting of A~ril 1, 1991, the Council adopted ordinance No. ~028 creating Underground Utility District No. 33 in the downtown area. The Ordinance inclUded notice that any property cwner located within the District had the option of paying the cost of service conversion over a period of ten years with interest. A total of 17 property owners of the 154 in the District selected the deferred payment plan. Tt'lis report 'Was prepared in order to proceed with assessment of the 17 properties and the funding of the deferred costs of the Downtown III conversions. Background and Qiscllssion 'f'he Downtown III underground project is a general benefit underground district, with the City paying all costs Except the individual property underground service c~nversions. Seventeen prcperty owners have opted for the deferred payment plan to p~y their individual conversion costs, tctaling $67,501. 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. Interest rates 'Were established at three-quarters of 1 percent above the New York Bond Buyer Index for the week preceding adoption of the Ordinance forming the underground district. Using this rate guideline, as mandated in the Palo Alto Municipal Code, the interest rate for the Downtown III loans will be 8.03 percent. A $50 loan processing tee is added to each assessment. funding CXRI551.91 -.- <:r~~!: ~ i , , \ ". \ ~ J o Improvement Reserve, thereby establishing a Reserve for Underground connections. As of June 30, 1991, the Electric SIR balance ....... as $3.3 million; and the Reserve for Underground connections 'Was $473 I 000. This is the tenth underground district fonned since cOW"lcil authorized the use of the Electric System Improvement Reserve to pay for individual property service conversions. 'I'his method of assisting with underground service connection costs has proven to be safe, effective and popular. R§!c_ommendatioD staff recommends that Council adopt th~ attached Resolution determininq properties electing to pay costs over a period of years, determining and classifying unpaid assessments, and funding loans to property owners from the Reserve ~or Underground connections. Respectfully submitted, \' 1 '"')() \ f) \ OJ JY' --~ """"<-_ MICHAEL BEANLAND Electrical Engineerinq Marlager f'2-<---A ~. tt RICHARD L. '{OUNG Director of utilities ( .riJ.b---1-.-~IAK ZANER city Manager- Attachments: Property OWner List Resolution 2 • .. , J , UNDERGROUND L~TLITY DISTRICr III Downtown I II Prope.rty OWner Clayton O. , Joan Stohr Rest John a .. woodworth John B. Boyd John B. Woodwc·rth John S. Wood:worth O. Tinoco Elaine A. Gaertner Barry Z. Rose Kiramonte Mental Health Serv., rnc. Parcel No. 120-03-053 120-04-037 120-15-044 120-04-032 120-04-031 120-04-045 120-64-003 1:20-64-006 120-04-048 Donovan Thayer 120-04-009 Philip W .. .Paulsen 120-04-010 Thomas J .. Nolan 120-03-038 Charlotte s. Costello, 120-03-041 scott A .. Costello., Tr. Philip DeBrincat 120-03-004 Dennis A. Levett ~20-04-006 Mark S., Paul S .. , 120-04-024 Tamara , David Hooper Scott Loman 120-04 -028 :E.)J{IB:T A Address 523-529 Byron 705 Cowper 454 Forest 545 Forest 555 Forest 628 Forest 640 Forest Ie 640 Fore.st IF 652 Forest 630-640 Hamilton 652 Hamilton 602-610 Uni'.rersi ty 624 university 400 Webster 601 Webster 627 Webster 642 Webster Assessment Total " Assessment Principal 2,800 6,384 2 1655 :2,732 40'58 468 J,.1~0 5.,516 11,020 7,235 2,000 5,998 2,716 2,257 $67,501 - RESOLUTION' NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO DETERMINING PROPERTIES ELECTING TO PAY COST OVER A PERIOD OF YEARS, DETERMINING AND CLASSIF¥ING liNPAID ASSESSMEh'"TS. ANO FUNDING !"oA...~S ro PROPER'!'¥ OWNERS FROM THE ELECTRIC SYSTEM IMPROVEMEW".I.' RESERVE u-NDERGROUND UTILITIES CONVERSION UNDERGROUND T,.'iTILITY ASSESSMENT DISTRICT 33 The Council of t!)e City of Palo Alto dOES RESOLVE as follcws: SECTION l~ The Council of the City of Palo Alto a~ended section 12.16.020 of Chapter 12.16 of Title 12 of the Palo Alto Municipal Code by establishing Underground Utility Dist~ict No. 33 on April 1, 1991, by adopting Ordinance No. 4028. SECTION 2. The o'.mers of certain properties have exe:rcised the option ~ffered in said ardi~a~e ~nd in Section 12.16.092 of said Code, to pay the cost OYer a period of years ~ith such obligation secured by special assessments. A list '=If the proper ties owned by persons who have exercised the option to pay the costs of converting their electric service connection to under ground locations OVE~r the period of ten (10) years as indicated thereon is attached hereto as Exhibit ·A· and hereby made a part hereof. gCTION 3. It appears to this Council that in its proceed ings under and pursuan~ to Resolution of Intention to form said District, being Resolution No. 6905, adopted on February 25, 1991, the assessments proposed to be levied should be made to mature over a period of ten (10) years: SECT:QN -4. The public convenience and necessity required that the proceedings heretofore taken with respect to said underground ~tility districts being changed and lrIodified 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 e.)(cess of the rate sho...-n in the NeW' York Bond Buyer Index of Municipal Bond Average Yields for 20 bonds for the week next preceding the day on which the Underground Districts were formed. ~CT~~ The assessments no;.r rem.aining unpaid are as shown on Exhibit -A" attached hareto and by this reference made a part hereof, and that the aggregate amo~nt thereof is $67,501.00, and includes a $50 loan processing fee per a:;sessment. This council ~e.reby determines that the ow~ers of the properties shown on Exhibit -A-hereto h~ve elected to pay the cost of converting electric service connections to underground locations over the period of ten (10) years and that said costs shall represent the unpaid assessments in these proceedings~ 1 91111.'~ II']n 0010140 SECTION 6. The City shall advance all loans to assessed propetty owners from available funds, and shall succeed to all rights under the .assessment and to all rights 'Which 'Would have acc~ed if bonds had been issued as provided in Section 13.04.170(i) of Chapter 13.04 of Title 13 of the Palo Alto Municipal Code. ~ans for the Underground District will be funded to the assessed property o;,mers from the Electric system IlT:prove ment Reserve (SIR). The total estimatea principal aalour.t to be funded by the SIR viII be $67,501 pepding any changes in actual moneys loaned. The principal plus interest and loan processing fee shall be amortized and repa.i.d through the o\l,'Tl.~r·s property taxes for a pe~iod of ten (10) years~ The l~ans shall bear interest from the latest of the date of completion and energizing of underground elec~rical facilities, or the ~,ate of disbursement cf the loan. The rate of interest 'Will be B.08 percent~ Principal payments viII be refunded to the Reserve for OndergroLmd Service Connections and interest will be added to the Electric System Improvem~nt Reserve. SF.C'I'~_~li..-2. A fee of $50 is added to the principal amount of each loan for loan processing~ INTRODCCED ArID PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: City clerk Mayor APPROVED AS TO FORM: Assis~ant city Attorney City Manaqer Director of utilities Director of Finance-------- 2 , I r ,