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HomeMy WebLinkAboutResolution 2020-020 N.C.S. 02/03/2020Resolution No. 2020-020 N.C.S. of the City of Petaluma, California A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA ACCEPTING THE ENGINEER'S REPORT ON THE FORMATION OF THE OAK AND WATER STREET BENEFIT ASSESSMENT DISTRICT, DISTRICT NO. 2019-1, AND SETTING THE TIME AND PLACE OF A PUBLIC HEARING ON FORMATION OF THE DISTRICT AND DIRECTING THE CITY CLERK TO GIVE MAILED NOTICE OF THE HEARING AND PROVIDE BALLOTS AS REQUIRED BY LAW WHEREAS, the Spanos Corporation, as owner of real property located at 368 and 402 Petaluma Boulevard in the City of Petaluma, Assessor's Parcel Nos., 006-163-055 and 006-163- 041 submitted a Site Plan and Architectural Review application to the City to build the North River Apartments Project; and WHEREAS, the Spanos Corporation has transferred ownership of the North River Apartments Project and APNs 006-163-055 and 006-163-041 to a successor entity referred to as North River Apartments, LLC, and as used in this resolution, "North River Apartments" refers to both the Spanos Corporation and North River Apartments, LLC, as the context may require; and WHEREAS, on August 5, 2019, the City Council adopted ordinances approving lot line adjustments and conveyances involving adjacent parcels at Water Street owned by the City and Water Street Properties LLC ("Water Street Properties"), vacating a sewer easement on property owned by Water Street Properties, and rezoning property owned by Water Street Properties to prepare for relocation of a sewer related to construction of the Water Street Public Improvements, to prepare the Water Street Properties land for development, and obtain needed right of way in the Water Street Plan Line for construction of Water Street, and as part of obtaining the needed water Street right of way Water Street Properties, like North River Apartments, obtained right of way from a third party, which acquisition cost will be included as a cost of the Public Improvements subject to reimbursement pursuant to an assessment district and reimbursement agreement; and WHEREAS, the Petaluma Planning Commission, on January 23, 2018, adopted Resolution No. 2018-02 certifying a Mitigated Negative Declaration ("MND")and adopting a Mitigation Monitoring and Reporting Plan ("MMRP")for the North River Apartments Project, and adopted Resolution No. 2018-03 approving the Site Plan and Architectural Review ("SPAR") for the North River Apartments Project; and Resolution No. 2020-020 N.C.S. Page 1 WHEREAS, Conditions of Approval Nos. 40 and 51 of Resolution No. 2018-03 require North River Apartments to construct certain public improvements within and along Water Street North and Oak Street within the City including but not limited to the construction of public streets including the acquisition of right-of-way, sidewalks, public parking spaces, water, sewer, and electrical upgrades, including the undergrounding of existing overhead utilities, and landscaping improvements described in Section 4 hereof (the "Public Improvements"); and WHEREAS, Condition 95 of Resolution No. 2018-003 provides that the cost to construct the Public Improvements will be funded by North River Apartments, and North River Apartments will be reimbursed through a reimbursement agreement ("Reimbursement Agreement") with the City, which will provide for reimbursement of North River Apartments from the proceeds of an assessment district formed pursuant to Chapter 13.35 of the Petaluma Municipal Code and other applicable law, and that the reimbursement for the cost of public improvements that benefit other properties is subject to North River Apartments and the City approving a reimbursement agreement and successful formation of an assessment district; and WHEREAS, Water Street Properties incurred costs in the amount of $200,000.00 for purchase of dedication rights for a portion of APN-006-163-022 to be transferred to the City for Water Street right of way, and if the formation of an assessment district proceeds as described in this resolution, Water Street Properties would also enter a reimbursement agreement with the City, which will enable them to reimbursed for their contribution; and WHEREAS, the City and North River Apartments and Water Street Properties intend to enter into reimbursement agreements subject to the successful formation of a benefit assessment district under and pursuant to the provisions of Chapter 13.35 of the Petaluma Municipal Code and Article XIIID, section 4 of the California Constitution, part of Proposition 218; and WHEREAS, the proposed benefit assessment district, if it is formed, is to be known as the Oak and Water Street Benefit Assessment District and designated as Benefit Assessment District No. 2020-1 (the "District"); and WHEREAS, in accordance with Section 13.35.050 of the Petaluma Municipal Code, the City Council, when considering forming a special assessment district pursuant to that section, may adopt its resolution of intention to form a benefit district related to the proposed assessment district, and such resolution shall: (A), identify, by name or general description of improvements Resolution No. 2020-020 N.C.S. Page 2 the proposed or existing assessment district to which the benefit district relates; (B), state that certain parcels of land (which need not be identified in the resolution) benefit from the assessment district improvements but are not assessed or proposed to be assessed; (C), state the intention of the City Council to form a benefit district related to the assessment district and to establish a special development assessment for the land therein; and (D), direct the city engineer or other staff member or consultant to prepare a benefit district report; and WHEREAS, in accordance with Petaluma Municipal Code Section 13.35.050, paragraph A, the proposed boundaries of the District are shown on a map which indicates by a boundary line the extent of the territory proposed to be included in the District, which map is designated "Boundary of Proposed Benefit District No. 2020-1" (the "Map"), and which is on file in the office of the City Clerk and a copy of which is attached to and made a part of this resolution as Exhibit A; and WHEREAS, in accordance with Petaluma Municipal Code Section 13.35.050, paragraph B, the North River Apartments and Water Street Properties projects will benefit from the Public Improvements and are proposed to be assessed, because although the North River Apartments is responsible for constructing the Public Improvements and initially incurring all related Public Improvement costs, except for the cost of property acquisition incurred by Water Street Properties, subject to potential reimbursement from assessments resulting from formation of the District pursuant to the contemplated Reimbursement Agreements of costs that are in excess of the North River Apartments' and Water Street Properties' fair share of the cost of the Public Improvements, and some fair share cost of the Public Improvements will be borne by North River Apartments and Water Street Properties and not assessed to other properties within the District, other Public Improvements costs will be assessed to the North River Apartments and Water Street Properties through the proposed District; and WHEREAS, Dennis Klingelhofer, PE, of Harris & Associates, has been retained by North River Apartments to prepare a benefit district engineer's report ("Engineer's Report") for the District in accordance with the requirements of Petaluma Municipal Code Section 13.35.060 and Article XIIID, Section 4 of the California Constitution; and WHEREAS, Mr. Klingelhofer, on behalf of Harris & Associates, is competent to make and file with the City Clerk subject to the approval of the City Engineer the Engineer's Report Resolution No. 2020-020 N.C.S. Page 3 with regard to the Public Improvements, which report is required by Petaluma Municipal Code Chapter 13.35 and Article XIIID, Section 4; and WHEREAS, in accordance with Petaluma Municipal Code Section 13.35.060, the Engineer's Report concerning the Public Improvements for the District shall contain the following as specified in that section: A. A description of each parcel of land proposed to be included in the benefit district. Any parcel may be described by its county assessor's parcel number as listed on the last equalized tax assessment roll or on current records of the county assessor. B. The amount of the proposed special development assessment for each parcel. The special development assessment shall be proportional to the estimated benefit to each parcel from the assessment district improvements. C. The development approval for which payment of the special development assessment is a precondition. D. The time period within which the special development assessment will be collected shall not exceed fifteen years from the establishment of the fee as set by the benefit district report, unless a longer period is specified in the report. E. The formula or method by which benefits within the benefit district are estimated. The method shall be based in proportion to estimated benefit to be received by each of the parcels in the benefit district from the assessment district improvements. F. The terms by which the special development assessment will be escalated over time, if escalation of the assessment is proposed. The assessment may be escalated in one of the following ways: 1. An annual increment of interest may be added to the assessment, at an uncompounded rate not exceeding the net effective rate on bonds of the assessment district for the same year. 2. The assessment may be increased annually in proportion to a published index of construction costs applicable to improvements such as those in the assessment district. Resolution No. 2020-020 N.C.S. Page 4 G. The manner in which the special development assessment will be disbursed when collected. The assessment may be disbursed in one or more of the following ways, and may change over time: 1. Disbursement to the general fund or a designated special fund of the city. 2. Disbursement to the assessment district improvement fund, for use or distribution as provided by law. 3. Disbursement to owners within the assessment district in accordance with reimbursement or development agreements; and WHEREAS, in accordance with Section 4 of Article XIIID of the California Constitution, all assessments shall be supported by a detailed engineer's report prepared by a registered professional engineer certified by the State of California, and agencies that propose to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed; the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided; no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel; only special benefits are assessable; an agency shall separate the general benefits from the special benefits conferred on a parcel; and parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit; and WHEREAS, in accordance with the California Environmental Quality Act (CEQA), the Planning Commission adopted Resolution 2018-02 on January 23, 2018, certifying a Final MND and MMRP concerning the North River Apartments Project, and analysis of the Public Improvements, including extension of Water Street North from the North River Apartment Project's southern boundary to Washington Street and the physical Improvements related to and required for the North River Apartments Project, including Oak and Water Street and related improvements, potential environmental impacts of which were previously studied and addressed in the FMND; Resolution No. 2020-020 N.C.S. Page 5 WHEREAS, by adoption on February 3, 2020 of Resolution No. 2020-019 N.C.S. (the "Resolution of Intention") initiating the proceedings for the formation of the District the City Council ordered the Engineer's Report prepared by the Assessment Engineer under and pursuant to the provisions of the Chapter 13.35 of the Petaluma Municipal Code and Section 4 of Article XII1D of the California Constitution; and WHEREAS, the Assessment Engineer has prepared the Engineer's Report subject to the approval of the City Engineer and filed the same with the City Clerk, and the City Clerk has presented the Engineer's Report to the City Council for consideration and acceptance of the Engineer's Report and setting of a public hearing on the Engineer's Report and formation of the District; and WHEREAS, Petaluma Municipal Code Chapter 13.35, and in particular, Sections 13.35.080 and 13.35.090, require that not less than 15 days before a public hearing on an engineer's report concerning formation of a benefit assessment district pursuant Chapter 13.35, the City Clerk shall mail notice of the hearing to each owner of land with the proposed District, which notice shall specify that the City Council has received a report proposing a special development assessment for the owner's land, a general description of the assessment district improvements from which the owner's land benefits, the amount of the proposed special development assessment, the conditions under which the assessment will be payable, the time and place of the hearing, that any owner or owner's representative may appear at the hearing to protest or comment on the report orally or in writing or both, that the report is on file with the City Clerk and is open for public inspection, and the name and telephone number of a staff contact or contacts where the owner may address questions; and WHEREAS, in accordance with the requirements of Article XIIID, Section 4 of the California Constitution, the notice required to be provided landowners within a proposed benefit assessment district must be provided by mail not less than 45 days before a public hearing on the engineer's report and formation of the district, and must include the amount of the proposed assessment for each identified parcel, the total amount of the assessment chargeable to the entire assessment district, the amount chargeable to the owner's particular parcel, the duration of the payments, the reason for the assessment and the basis upon which the amount of the proposed assessment was calculated, a summary of the procedures applicable to the completion, return and tabulation of ballots on the formation of the benefit assessment district, and a statement that the existence of a majority protest will result in the assessment not being imposed; Resolution No. 2020-020 N.C.S. Page 6 NOW, THEREFORE, be it resolved by the City Council of the City of Petaluma as follows: 1. Recitals. The above recitals are hereby declared to be true and correct and incorporated into this resolution as findings of the City Council. 2. CEQA. Potential environmental impacts of the Public Improvements were previously analyzed and addressed in the FMND and MMRP adopted by the Planning Commission concerning the North River Apartments Project and the Public Improvements pursuant to Resolution No. 2018-02 adopted January 23, 2018. 3. Acceptance of the Report, Including the Map. In accordance with Section 13.35.070 of the Petaluma Municipal Code, the Engineer's Report as approved by the City Engineer and filed with the City Cleric is hereby accepted, and the City Clerk is directed to endorse the fact and date of such acceptance on the Engineer's Report and to file the Engineer's Report in her office. The Map filed along with the Engineer's Report is hereby accepted and declared to describe the boundaries of the proposed District; and it shall govern for all details as to the extent of the proposed District. The City Clerk is hereby directed to endorse her certificate on the original of the Map evidencing the date and acceptance of said Map and to file the Map in her office along with the Engineer's Report. 4. Public Hearing. A public hearing shall be held on March 23rd, 2020 at 6:45 p.m. or as soon thereafter as the matter may be heard at the regular meeting place of the City Council at City Hall Council Chambers, 11 English Street, Petaluma California, to hear and consider protests and objections to the proposed District and the Engineer's Report and to receive and count the ballots for and against the proposed District. 5. Notice. At least 45 days prior to the public hearing referred to in Section 4 hereof, the City Clerk shall cause a notice of the adoption of the Resolution of Intention, the filing of the Engineer's Report and the setting of time and place for the public hearing on the Engineer's Report and the formation of the proposed District referred to in Section 4 hereof to be mailed, postage prepaid, to all persons owning real property proposed to be assessed and whose names and addresses appear on the last equalized County of Sonoma assessment roll or the State Board of Equalization assessment roll, as the case may be, or who are known to the City Clerk. Such notice shall conform in all respects to the provisions of Section 13.35.090, Section 53753 of the California Government Code and Article XIIID, Section 4 of the California Constitution as applicable. Resolution No. 2020-020 N.C.S. Page 7 6. Severability. If any section, subsection, sentence, clause, phrase or word of this resolution is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this resolution and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. 7. Resolution Effective Immediately. This Resolution shall take effect immediately upon its adoption. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the rA pa`v'ed as to Council of the City of Petaluma at a Regular meeting on the 3,d day of February tolm: 2020, by the following vote: I City ` ttorney AYES: Vice Mayor Fischer; Kearney; King; McDonnell; Miller NOES: None ABSENT: None ABSTAIN: Mayor Barrett; Healy t ATTEST: City Clerk Vice Mayor Resolution No. 2020-020 N.C.S. Page 8