HomeMy WebLinkAbout0566.093Noveml:Yer .. , 1993
THE HONORABLE CITY COUNCIL
palQ Alto, California
~-. -' '
7
Qnderground District No. 3'1 pcr.rntown IV And Channinq/Add!fDn.
PtppArty owners El@cting to Pay Underground Conyers ion GDst, over
o Period of Years
Me1ab'ers of the Council;
Report in Brief:
At its meetinq of November 2~ 1992, the council adopted Ordinance
NO. 41.12 creatinq Underground Utility District No~ 34 in the
downtown a.rea. The Ordinance provided notice that any property
owner located within the District had the option of payinq the cost
of service conversion over a period of ten years, with interest 4
A total Of 52 o£ the 285 property owners in the District sel~cted
the deferred payment plan4 This report was prepared in order to
proceed with assessment of the 52 properties and the funding of the
deferred costs of the Downtown IV and. Channing/Addison conversions.
BAckground and Discussion
The Downtown IV and ChanningjAdd.ison underground project is a
qeneral benefit underground aistrict, with the City paying all
costs except the individual property uncSerqround service
conversions. Fifty-two property owners have chosen the deLerced.
payaent plan for their individual conversion costs, tota.lirrq
$201, Hi8. The remaining property owners chose t.o be res-ponsible.
for their own financial arranqements.
Assess.ents vill be secured by liens on each property for the ten
year term of the loan. Repayment to the City will be .ade throuqh
the owner· s property tax bills4 Interest rates were established at
the week preceding adoption of the Ord.inance forming the
underqround district4 Using this rate guideline, as mandated in
CIIIII56" f3
...
I I !
, ,
,.,>.,
e'._
<;~-:~~'-.
. %( '.~~~ -"~'-':'
~;:~;/: ~:,;i~"',.~)~ ~'." ",c~~;> /
'.' . < .. , ~~~....;.._""'''''iiIiM_''''
the Palo Alto Municipal Code, the interest rate for
and Channinq/Addison loans will be 7.46 percent.
processinq tee is added to each a'1:.ISeSSlIent.
the Downtown IV
A $50.00 lean
Funding
On August 21,. 1984, council approved the funding of individual
electric connections frem. the Electric Improvement Reserve, thereby
establishinq a. Re5erv~ for undergr.ound Connections. As of June 30",
1993, the Electri~ RS~ halance vas $45.065 million: and the Reserve
for Underground Connections was $518,460. This is th.e eleventh
underqround district formed since Council oQuthori.z::ea the use of the
Electric System Improvement Reserve to pay for individual property
service conversions. This .ethoc! of assistinq with underground
service connection costs has proven to be safe, effective and
popular.
Recommendation
Sta~t recommends that Council adopt the attached Resolution
determining properties elect1nq to pay costs over a period of
years, determining and classify1nq unpaid assessments~ and fundinq
loans to property owners from the Reserve for Underground
Connections~
Respecttully submitted,
"\1 \ I'~. I ( ,\ ~l0:cre.c.'k~
IUCllAEL SEANLAND
El~rica~~~~~"rinq Manager
j. ~1""/7
EDWARD' J. KRIZEK
Director of Utilities
~1V\.~
BERNARD II. STROJNY
Assistant City Manager
Attachaents: property OWner List
Resolution
"-
UNDERGROUND UTILITY DISTRICT 134
Downtown IV & Channiugl Addis,"
~.nt
I'n>peI1y OwDelis) Po"",,1 No. Address PriacipaJ
James 1. &. Lanen Mimmack 120-05·031 825 Cvwper S 4.435
Hills Fanuly Trust, Evelyn
Hills O·Connor. Tr. 120-05-032 811 Cowper 13.962
Uoyd E. &: Mildred V. Boreham 120.05-071 965-971 Cowper 2,Ui9
Dennis Levett 120-16-!l21 628 'Wavertey 3,337
Dennis Levett, el 01 120-16-033 345 Forest 16,292
Casa Real Prefefree
Income Association J20-16-039 360 Forest 18.050
Roman Catholio Bi<hop of
San Jose 120-16-055 423 425 Homer 2,421
Roman Catholic Bishop of
San Jose 120-16-056 751 Waverley 2,259
Roman Catholic Bisbop of
San Jose 120-16-057 745 Waverley 3,489
Albert K. &: Theresa K. ''In,,:; 120-16-058 733 Waverley 3,290
Woa H. Kim &. Chung S. Kim 120-16-062 730 Waverley 2.477
James C. Finch 120-16-065 756-760 Waverley 2,493
lame. C. Finch 120-16-066 385 Homer 2,230
Evelyn O'Connor &: Thomas H.
O'Connor, Tr. j2~L17-003 8()1 Waverley 2,487
John E. KlIiser &:
Paul KeIIcl!er 120-17·005 424426 Homer 3,021
lames &. Vera Leung, Tr. 120-17-0lG 810-816 Cowper 3,048
Dennis Levett 120-17-O11 818·820 Cowper 2,716
Dermi.; Leven 120-17-012 828-830 Cowper 2,179
James J. &. Lanen Mimmack 120-17-014 846 Cowper 2,447
Theodore C. &. AIzora R.
Carlstrom 120-17-017 459 Channing 1,739
Carl P. M.-C!uskey &: Judith
E. Lindner McCluskey 120-17-021 823-825 Kipling 3,057
Dennis Levett 120-17·040 350-360 Channing 3,594
Eric L and Janis J. Marti 120-17-044 426-428 Channing 3,406
Vada Lee M. Woodward ale.
Vada Lee Jones 120-17-047 460 Channing 10,002
Lee and Margo Schmidt 120-1HJ57 447 Addison 2,317
Jean Ramacciotti 120-17-059 959 Waverley 1,587
MilSoo Tacllibana &. Fumiko &.
~-'-
,
~ 0
2
Kazulka Tachibana, ., al 121).17·062 925 Waverley 5,637
David R. and Shiel. J.
MacDonald 120-17·065 920 Wa'Orley 2,478
John Patrick May 121). 17-066 928 Waverley 2,131
Norine Maiu McKnigh~ Tr. 120-17-072 361 Addison 1,803
Robe" S. Raer 121).17-075 943 Scott 2,309
Dennis Le.ett 121).17.(182 940 Scott 2,484
DellIlis Levett 120-18·005 356 Addison 2,525
John C. '" Pam McFarlin !20-18·013 448 Addison 8,699
Margarel Milledge 12O-1a-<J29 1011 Waverley 2,566
Mark J. Alguard '" Rosemary
V. Woodall 120-18"()30 1020 Waverley 2,688
Thomas E. Harringlon, Tr. J20-27-066 734 Ramona 3,954
Earl F. '" Patricia C.
Schmidl 120-27..()70 795 Emerson i,821
Ann WIlbur 120-27-078 780 High 4,465
De.., G. Hileman, lr. 12()'2 7 -V79 799 Alma 2,000
Patricia C, Schmidl '"
John J. Cashe! 120-28-006 800-818 Emerson 6,613
Patricia C. Schmidt '"
lohn J. Casbel 120-28-007 200 Homer 3,367
Thomas R Hani50n 12()'28.j)10 230 Homer 2,403
lohn Patrid May 120-~ 828 Ramona 1,522
Earl F. '" Patricia C.
Schmidt 120-28-Q>6 821-&25 Emerson 801
Richard R Klein )20-28-046 853 AlUla 1,788
Michael and Ruth Hodes 120-28..()60 944 Bryanl 1,576
Allan D. Yarkin, Tr. '" ot al 120-28-079 945·949 Emerson 6,Oll
Robert A. Elliott 12()'28-086 930 Emerson 5,862
Rine Fanuly Trust
Gerard"" Sher1ce Rhine, Tr. 121).28.j)% 955 Alma 1,789
Sam H. Chin and Juliana H.
Chin, el aI 120-28.j)99 829-833 Emerson 1,615
Boris Pleshaleov, Tr. 120-29"()28 1000 Ramona 3.557
5201,168
tj
I :1
_;... ___ .;.._ .... t=_~;_,.... __
eOUNC'Alj, .... P~ Fr'OPO.5H:·
UNDE~Gr .... 0 C'!~Tq,C 1
Pr<OPEr<TJl:(~N "r?OPCSi:O
UND{:'IG~OUi'O DI51:;,,:1 ,.0
CITY OF PALO ALTO
CAliFORNIA
~PErH:u. ,~: E~,I:.T,NI ...
:'>,:,~!O'J~.L;' f:·,sTrw:!S
\
"riDNr;';'ES OI.lT'j'DE .... ,~<I' E~;S11N.:' Or<
Pi'IQPC,:,[i)
1"-300"
I
i c
!
follows:
RESOLUTION NO.
RESOLUTION OF THE COtltJCIL OF THE CITY OF PALO ALTO
DBTERMINING PROPERTIES ELECTING T"C PAY COST eVER A
PEPIOn OF Y£})'RS, DETERMINING AND CLASSIFYING
tJNPAID ASSESSMENTS, MID Fm-"DIr-;C LOANS TO PROPERTY
OWNERS PROM THE ELECTRIC SYSTEM IMPROvEME~~r
RESERVE
UNDERGROUND l~lLrTIES CONVERSION
UNDERGROUND UTILITY ASSESSMElII"T DrSTRI(.'T 34
The Counci1 of the City of Palo Alto does RESOLVE as
SBCTION 1. The Council of the City of Palo .~lto am.end€d
Section 12.~6.020 of Chapter 12.16 of Title 12 of the Palo Alto
M~nicipal Code by establis~ing Undergrou~d Utility District No. 34
on Nov~~er 2, 1992, by adopting Ordinance No. 4112.
SECTION 2. The ow:ners 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 wi th such
obligation secured by special assessments. A list of the proper
ties owned by persons who have exercised the option t.o pay the
costs of converting their electric service connection to under
ground locations over the period of ten (10) years as indicated
thereOD is attaChed hereto as Exhibit ·A· an~ hereby made a part
hereof.
SECTION 3. It appears to this Council that in its proceed
ings under and pursuant to Resolution of Intention to form said
District. being Resolution No. 7119, ad.opted on July 13~ 1992~ the
assessments proposed to he levied should be made to mature over a
p:riod of ten (10) years;
s.EJ~TIQN 4. The public convenience and nece£:sity required
that the proceedings heretofore taken with respe~t to said
underground utility districts being chan'"'ed and modified to provide
that the rate of interest to be paL" by said own'5':rs of said
properties shall be three quart-ers of one percent. 0/4 of It} in
excess of the rate shown in the New York Bond Buyer Index of
[o!unicipal Bond Average Yields for 20 bonds for the 'W~ek next
preceding the day O!1 which the Underground Districts were f'o:aned.
sECI'rQN 5. The assessments now remaining unpaid are as
shown on Bxhibit WA" attached hereto and by this reference made a
part hereof, and that che aggregate ~.ount thereof is $201,168.00,
and includes a $50 loan processing fee per assessment. This
Council hereby determines that the owners of the properties shown
on Exhibit wA w hereto have 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 r€>p:ceser:.t the
unpaid assessments in these proceedings.
1
•
SECj'TQU 6. The City shall <=i.dvance all loans to assessed
property O\ATiers from available funds, and shall succeed to all
rights under the assessment and to all I-ights which wou':d have
accrued if bonds had been issued as provided in Sect ion
13.D4.17(J(i' ot chapte!: 13.04 of Title 13 of: tr.e Palo Alto
Municipal Code. Loan-s for the undergI:ound District will be funded
to the -assessee property owue-rs from the El€ctric System rmprove
Inent Reserve (SIR). The total estiIl'.ated pn.ncipc.l amount to be
funded b}' the SIR will be $201,168 pending an}' changes in actual
moneys loaned. The principal plus interest and loan processing te~
sha.ll be amortized and repaid ti:lrough the owner' 5 property taxes
for a period of ten (10) years.
The loans shall hear interest from the latest of the date
of completion and energi2ing of ur.de.r~:3'TOUnd electrical facilities,
or the date of disbursement of the loan. The rate of interest ..... i 11
be S. 08 percent. Principal payrr-.ents will be refunded to the
Resezve far Underground Service Cor...nections and interest will be
added to the Blectric system Improvement Reserve.
~CTIQN 7. A fee of $50 is added to the principal amo~nt
of each loan for loan proeessins.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
A'lTEST:
City Clerk
APPROYED AS TO FORM:
Senior Asst. City Attorney C~ty Manager
Dire-etcr of Utilities
[Ii rectorof Finarlce
2
9J 1U21 ")'n 001W99