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HomeMy WebLinkAboutRESOLUTION 2025-013 N.C.S. 02/03/2025 Resolution No. 2025-013 N.C.S. Page 1 of 5 Resolution No. 2025-013 N.C.S. of the City of Petaluma, California RESOLUTION ACCEPTING THE FINAL CONFIRMED ENGINEER’S REPORT AND THE REVISED COST CERTIFICATION REPORT FOR THE OAK AND WATER STREET BENEFIT ASSESSMENT DISTRICT NO. 2020-1 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 City Council, on February 3, 2020 adopted Resolution Initialing Proceedings for the formation of the Oak and Water Street Benefit Assessment District No. 2020-1 and Ordering the Preparation of a report on the District Formation, and a Resolution Accepting the Report on the District Formation and setting a Public hearing on the Report and Formation of the District and Directing the City Clerk to give mailed notice of the Hearing and Provide Ballots as required by law; 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 WHEREAS, Conditions of Approval Nos. 40 and 51 of Resolution No. 2018-003 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 Docusign Envelope ID: 1DE9E807-BD60-4F70-8EE1-82E31835C293 Resolution No. 2025-013 N.C.S. Page 2 of 5 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 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, 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 benefit assessment district is 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 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 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; and WHEREAS, in accordance with Petaluma Municipal Code Section 13.35.050, paragraph (B), the North River Apartments and Water Street Properties projects benefit from the Public Improvements, and are proposed to be assessed, because although North River Apartments was 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 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, other Public Improvements costs was assessed to North River Apartments and Water Street Properties through the District; and WHEREAS, 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 Docusign Envelope ID: 1DE9E807-BD60-4F70-8EE1-82E31835C293 Resolution No. 2025-013 N.C.S. Page 3 of 5 WHEREAS, Harris & Associates is competent to make and file with the City Clerk, subject to the approval of the City Engineer, the Engineer’s 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 Engineer’s Report concerning the Public Improvements for the District contains 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 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. 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 was 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 Docusign Envelope ID: 1DE9E807-BD60-4F70-8EE1-82E31835C293 Resolution No. 2025-013 N.C.S. Page 4 of 5 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, including analysis of the extension of Water Street North from the North River Apartments 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. WHEREAS, the Council authorizes future reimbursements to be administered by the City Manager and the Finance Director or their designees 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 North River Apartments Project 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 Final Confirmed Engineer’s Report. Harris & Associates as appointed the Assessment Engineer and in accordance with Petaluma Municipal Code Section 13.35.050, paragraph D, the Assessment Engineer prepared, subject to the approval of the City Engineer a Final Confirmed Engineer’s report for Benefit District (dated December 6, 2024) established on February 3, 2020 as District No. 20210-1. The City Clerk Shall file the Final Confirmed Engineer’s Report regarding the Public Improvements for the District in accordance with all requirements of this resolution and applicable law, including Petaluma Municipal Code Section 13.35.060, and Article XIIID, Section 4 of the California Constitution. 4. Acceptance of the Revised Cost Certification Report. The City Council hereby accepts the Revised Cost Certification Report dated December 6, 2024. The City Clerk shall file the Revised Cost Certification Report and as part of the Authority for a Reimbursement Agreement. 5. 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. 6. Resolution Effective Immediately. This Resolution shall take effect immediately upon its adoption. Docusign Envelope ID: 1DE9E807-BD60-4F70-8EE1-82E31835C293 Resolution No. 2025-013 N.C.S. Page 5 of 5 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 Council of the City of Petaluma at a Regular meeting on the 3rd day of February 2025, by the following vote: Approved as to form: __________________________ City Attorney AYES: McDonnell, Barnacle, Cader Thompson, DeCarli, Nau, Quint, Shribbs NOES: None ABSENT: None ABSTAIN: None ATTEST: ______________________________________________ City Clerk ______________________________________________ Mayor Docusign Envelope ID: 1DE9E807-BD60-4F70-8EE1-82E31835C293