HomeMy WebLinkAboutResolution 2020-048 N.C.S. 04/20/2020Resolution No. 2020-048 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY OF PETALUMA APPROVING THE ENGINEER'S
REPORT DATED JANUARY 27, 2020, DECLARING THE CANVASS OF BALLOTS OF
PROPERTY OWNERS AND FORMING BENEFIT ASSESSMENT DISTRICT 2020-1,
OAK AND WATER STREET PUBLIC IMPROVEMENTS, PURSUANT TO CHAPTER
13.35 OF THE CITY OF PETALUMA MUNICIPAL CODE AND ARTICLE XIIID,
SECTION 4 OF THE CALIFORNIA CONSTITUTION
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., 006-163-040 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 North River Apartments Project consists of two apartment buildings
including 184 dwellings, approximately 4,677 square feet of commercial space, 4,981 square feet
of tenant amenity area, 1,953 square feet of leasing office, and associated on- and off-site
improvements, public improvements, and a Class I multi -use path along the Petaluma River and
connecting to the Pedestrian Bridge; and
WHEREAS, the Petaluma Planning Commission, on January 23, 2018, adopted
Resolution No. 2018-02 certifying a Mitigated Negative Declaration and adopting a Mitigation
Monitoring and Reporting Plan for the North River Apartments Project, and adopted Resolution
No. 2018-03 approving the Site Plan and Architectural Review for the project; and
WHEREAS, Conditions of Approval Nos. 40, 47, 48, 50 and 51 of Resolution No. 2018-
03 require construction of certain public improvements within and along Water Street North and
Oak Street both within the North River Apartments property and offsite in the City of Petaluma,
and such public improvements include but are not limited to the extension of Oak Street within
the Property; the construction of Water Street from the intersection with Oak Street within the
Property south of the Property across adjacent parcels to East Washington Street; curb, gutter,
sidewalk, public parking spaces, crosswalks, street lights, fire hydrants, landscaping, water
mains, sewer mains, storm drains, electrical upgrades, and undergrounding of all overhead
utilities along Oak Street within the Property and along Water Street, Petaluma Boulevard North
improvements, and railing along the sidewalk on Oak Street and Petaluma Boulevard North
("Public Improvements"); and
Resolution No. 2020-048 N.C.S. Page 1
WHEREAS, in order to construct the Public Improvements, right-of-way must be
obtained from adjacent property owners that own property within the Plan Line for Water Street
and that are south of the North River Apartments Property, and Condition of Approval 82
obligated North River Apartments to obtain property rights needed within the Water Street Plan
Line; and
WHEREAS, Condition 95 of Resolution No. 2018-003 provides that the cost to
construct the required Public Improvements will be funded by the developer, but the developer
will be reimbursed through a reimbursement agreement with the City, which will provide for
reimbursement of the developer 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 funding of
Public Improvements that benefit other properties is subject to the developer and the City
approving a reimbursement agreement and successful formation of an assessment district; and
WHEREAS, Condition of Approval No. 37 of Resolution No. 2018-03 provides that
should the City Council consider a request to approve a reimbursement agreement related to the
Public Improvements, the Planning Commission recommends that monies associated with the
approved City of Petaluma River Trail Capital Improvement Project (C03200503) grant fund
("River Trail Grant") be allocated toward construction of a Class I facility between the
Petaluma River Bridge and Water Street North through the City's pump station parcel (APN
006-163-051) connecting to Water Street North, the exact alignment of which is to be approved
by the City Engineer; and
WHEREAS, the Spanos Corporation has transferred ownership of the North River
Apartments Project and Assessor's Parcel Nos. 006-163-040 and 006-163-041 to a successor
entity referred to as North River Apartments, LLC, which title is used in this resolution to refer
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; and
Resolution No. 2020-048 N.C.S. Page 2
WHEREAS, the purpose of the August 5 actions was to prepare for relocation of a sewer
related to construction of the 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
WHEREAS, 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 City and North River Apartments and Water Street Properties intend to
enter into a reimbursement agreement 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
Benefit Assessment District No. 2020-1, Oak and Water Street Public Improvements
("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
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"), which Map is on file in the
office of the City Cleric; and
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WHEREAS, in accordance with Petaluma Municipal Code Section 13.35.050, paragraph
(B), the North River Apartments property and the Water Street Properties property will benefit
from the District Public Improvements, and are proposed to be assessed, because although North
River Apartments is responsible for constructing the Public Improvements and initially incurring
all related Public Improvement costs, except for right of way acquisition costs that will be borne
by Water Street Properties, subject to potential reimbursement from assessments resulting from
formation of the District (pursuant to the contemplated reimbursement agreement) 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 of the 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, and 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 to
prepare a benefit district report ("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 Report 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
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.
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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.
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
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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, on February 3, 2020, the City Council adopted Resolution No. 2020-019
(the "Resolution of Intention") initiating the proceedings for the formation of the District and
ordering the preparation of the Report on the District formation pursuant to the provisions of the
Chapter 13.35 of the Petaluma Municipal Code and Section 4 of Article XIIID of the California
Constitution; and
WHEREAS, also on February 3, 2020, the City Council adopted Resolution No. 2020-
020 accepting the Report on the formation of the District, which Report is made a part of this
resolution by this reference, and setting the time and place of a public hearing on the Report and
formation of the District for March 23, 2020, and directing that the City Clerk give mailed notice
of the hearing and provide ballots as required by law; and
WHEREAS, the Assessment Engineer has prepared the Report subject to the approval of
the City Engineer and filed the same with the City Clerk, and the City Clerk has presented the
Report to the City Council for consideration; and
WHEREAS, Petaluma Municipal Code Chapter 13.3 5, 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
Resolution No. 2020-048 N.C.S. Page 6
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; and
WHEREAS, in accordance with the requirements of Petaluma Municipal Code Chapter
13.35, and in particular, Sections 13.35.080 and 13.35.090, and Article XIIID, Section 4 of the
California Constitution, on February 6, 2020, which date was 45 days before the scheduled
March 23, 2020 public hearing, ballots and voting instructions and notice of the March 23, 2020
public hearing on the Report and formation of the District were mailed to all owners of property
in the District; and
WHEREAS, on March 23, 2020, as a result of the COVID-19 pandemic, the City Clerk,
with no Council Members present, continued the public hearing on the Report, formation of the
District and approval of reimbursement agreements with North River Apartments and Water
Street Properties to April 20, 2020 in accordance with Section 54955 of the Brown Act; and
WHEREAS, on April 16, 2020, notice by mail and email was provided to owners of
property in the District advising them that the April 20, 2020 City Council meeting would be
conducted virtually, providing instructions on how to participate, and requesting that ballots be
mailed to the City prior to the public hearing if possible and not delivered by hand to protect the
public health and safety in compliance with the County of Sonoma and State of California
sheltering orders; and
WHEREAS, on April 16, 2020, notice by mail and email was provided to owners of
property within the District with instructions on how they may submit ballots on formation of the
District at City Hall, up to the time that the public hearing on formation of the District is closed,
in compliance with the County of Sonoma and State of California sheltering orders; and
Resolution No. 2020-048 N.C.S. Page 7
WHEREAS, at a hearing on formation of a benefit assessment district pursuant to
Chapter 13.35 of the Petaluma Municipal Code, the City Council shall consider all protests and
comments, oral and written, by any interested person, and may continue the hearing from time to
time, in accordance with Petaluma Municipal Code Section 13.35.100; and
WHEREAS, in accordance with Petaluma Municipal Code section 13.35.110, at a
hearing on formation of a benefit assessment district, the City Council may reject the report and
abandon proceedings for formation of the benefit assessment district, may approve the report as
filed, or may modify and approve the report, but the City Council may not increase the initial
special development assessment in the report on file without the written consent of the affected
owners unless the City Council first holds a hearing on the increase after ten day notice by mail
to the affected owners, and, if the City Council approves the report, it shall adopt a resolution
forming the benefit assessment district and establishing the special development assessment in
the amounts and under the terms set forth in the report; and
WHEREAS, in accordance with Article XIIID, Section 4, of the California Constitution,
at a public hearing on a proposed assessment, all protests against the proposed assessment shall
be considered, ballots on the proposed assessment shall be counted, and the assessment shall not
be imposed if upon the conclusion of the public hearing, a majority protest exists such that the
ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the
assessment, with the ballots weighted according to the proportional financial obligation of the
affected property; and
WHEREAS, in accordance with the requirements of Article XIIID, Section 4, and
Section 53753 of the Government Code, following the public hearing on the Report and
formation of the District held on April 20, 2020, the City Clerk canvased the ballots submitted
concerning the Report and formation of the District, and declared that a majority protest did not
exist concerning formation of the District; 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
Mitigated Negative Declaration (FMND) and Mitigation Monitoring and Reporting Program
(MMRP) concerning the proposed North River Apartments Project, including analysis of the
extension of Water Street North from the Project's southern boundary to Washington Street and
Resolution No. 2020-048 N.C.S. Page 8
the physical improvements related to and required for the Project, including Oak and Water
Street and related improvements, potential environmental impacts of which were previously
studied and addressed in the Project FMND;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Petaluma, as
follows:
FINDINGS
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 North River Apartments Project FMND and
MMRP adopted by the Planning Commission concerning the project and the Public
Improvements pursuant to Resolution No. 2018-02 adopted January 23, 2018.
3. Initiation of Proceedings and Declaration of Intention to Levy Assessment. In
accordance with Petaluma Municipal Code Section 13.35.050, paragraph D, Section 4
of Article XIIID of the California Constitution, and other applicable law, on February
3, 2020, the City Council adopted Resolution No. 2020-019 initiating proceedings to
form the District to fund part of the cost of the Public Improvements benefitting
properties within the District and declared its intention to levy a special assessment
upon the lands within the District in proportion to the respective special and direct
benefit to be received by each assessed parcel of land from the Public Improvements.
Further, the City Council declared its intention to defer the payment of the assessment
by the owners of parcels within the proposed boundaries of the District as provided in
the Report.
4. Nature of Improvements. The Public Improvements generally include:
a. Construction of the extension of Oak Street from Petaluma Boulevard to Water
Street North, the construction of Water Street North from Oak Street to the existing
Water Street (Poultry Street), and the reconstruction of the existing Water Street
Resolution No. 2020-048 N.C.S. Page 9
(Poultry Street) to its intersection with East Washington Street, including the
construction of on -street parking stalls, sidewalks, curbs, lighting, and tree wells.
b. Construction of new water distribution pipelines within Oak Street and Water
Street to replace undersized service lines to provide an adequate supply of potable
water and adequate fire flows to parcels within the boundaries of the District,
including the installation of new fire hydrants.
e. Construction of new sanitary sewer collection pipelines within Oak Street and
Water Street with capacity to provide wastewater collection and conveyance to the
City of Petaluma Copeland Pump Station (but excluding the relocation of the sewer
line from Water Street to the Copeland Pump Station).
d. Construction of new storm water collection and conveyance improvements, which
will convey captured flows to the Petaluma River.
e. Undergrounding of existing utilities within and along Water Street.
f. Construction of a Class I bicycle and pedestrian connection from the Copeland
Bridge to East Washington Street.
5. The Report. By adoption of Resolution No. 2020-019 on February 3, 2020, the City
Council appointed Mr. Klingelhofer of Harris & Associates the Assessment Engineer
for the District and in accordance with Petaluma Municipal Code Section 13.35.050,
paragraph D, directed the Assessment Engineer to prepare, subject to the approval of
the City Engineer, and to file with the City Clerk the Report in accordance with all
requirements of applicable law, including Petaluma Municipal Code Section
13.35.060, and Article XIIID, Section 4 of the California Constitution. By adoption
of Resolution No. 2020-020 on February 3, 2020, the City Council accepted the
Report as approved by the City Engineer and filed with the City Clerk, directed the
City Clerk to endorse the fact and date of such acceptance on the Report and to file
the Report in her office, declared that the Report describes the boundaries of the
proposed District and to govern for all details as to the extent of the proposed District
and directed the City Clerk 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
Resolution No. 2020-048 N.C.S. Page 10
along with the Report, in accordance with Section 13.35.070 of the Petaluma
Municipal Code. The Report includes:
a. Plans and specifications for the Public Improvements;
b. A general description of works or appliances already installed and any other
property necessary or convenient for the operation of the Public improvements, if
the works, appliances or property are to be acquired as part of the Public
Improvements;
c. An estimate of the cost of the Public Improvements, and the cost of land, rights of
ways, easements, and incidental expenses in connection with the Public
Improvements;
d. A diagram showing the exterior boundaries of the District, the boundaries of any
zones within the District and the lines and dimensions of each parcel of land
within the District as they existed at the time of passage of this resolution (each
subdivision to be given a separate number on the diagram);
e. A proposed assessment of the total amount of the cost and expenses of the
proposed Public Improvements upon the several subdivisions of land in the
District in proportion to the estimated benefits to be received by such subdivision,
respectively, from the Public Improvements (the assessment shall refer to the
subdivisions by their respective numbers assigned as provided in (d) above);
f. The development approval for which payment of the assessment shall be required
prior to issuance of a building permit;
g. The time period in which the deferred assessment may be collected and after
which the parcel shall no longer be subject to the assessment; and
h. A proposed maximum escalation of the assessment over time upon each of the
several subdivisions of land in the District and the maximum annual costs to be
imposed for the administration and collection of assessments.
Resolution No. 2020-048 N.C.S. Page 11
ACTIONS OF THE CITY COUNCIL
6. Report Approved. The report prepared concerning the District accepted by the City
Council on February 3, 2020, is hereby approved.
7. District Formed. District 2020-1, Oak Street and Water Street Public Improvements,
is hereby formed in accordance with Petaluma Municipal Code Chapter 13.35 and
Article XIIID, Section 4, of the California Constitution, and other applicable law.
8. Notice of Benefit District Formation. In accordance with Petaluma Municipal Code
Section 13.35.120, the City Clerk is hereby directed to record a notice in the office of
the County Recorder of the County of Sonoma a Notice of Special Development Fee,
in substantially the form prescribed in that section, and to mail a copy of the notice to
each owner of land within the District.
9. Severability. The City Council hereby declares that every section, paragraph,
sentence, clause, and phrase of this resolution is severable. If any section, paragraph,
sentence, clause or phrase of this resolution is for any reason found to be invalid or
unconstitutional, such invalidity, or unconstitutionality shall not affect the validity or
constitutionality of the remaining sections, paragraphs, sentences, clauses, or phrases.
10. 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 Approved as to
Council of the City of Petaluma at a Regular meeting on the 201h day of April 2020, f m
by the following vote:
City Attorney
AYES: Vice Mayor Fischer; Kearney; King; McDonnell; Miller
NOES: None
ABSENT: None
ABSTAIN: Mayor Barrett; Healy
Ll I
ATTEST: &WA,2 ' �!kll
City Clerk 'Vice Mayor
Resolution No. 2020-048 N.C.S. Page 12