REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Amending the FY 2026/27 Fee Schedule to Clarify the Applicable Permit Fee for Downtown Outdoor Dining with no Change in Amount
Report
BACKGROUND
The fees, rates, and charges of the City are reviewed and adjusted each year and as needed in accordance with Council Policy 7.1.1 (Fiscal - Long Range Goals and Financial Policies).
The City Council formed an Ad Hoc Committee to work on one of the Council Strategic Framework Workplan Items: Responsive Government; Workplan Item GO-37 (Update Council Policies). One of the updated Policies is City Council Policy 1.1.10 Use of the Public Street and Sidewalk on the 100 Block of South Murphy Avenue, to better align with the permanent pedestrian mall established on that block.
In addition to the policy update, staff will implement a clearer online process for business owners seeking outdoor dining on the 100 Block of South Murphy Avenue. Review of outdoor dining on that block is processed through a Miscellaneous Plan Permit (MPP). This is a staff-level review permit. There has been some confusion in the applicable MPP fee as the City has multiple MPP fees. The fee charged for these outdoor dining MPP applications is listed as “Miscellaneous Plan Permit Residential 3 or more and non-residential (MPP or Unspecified).” With the Policy update and clearer online application process, staff proposes clarifying the applicable MPP fee with the specific label of “Downtown Outdoor Dining Application (100 Block S Murphy).” This is a technical correction and not a new fee.
The fee amount would align with the MPP fee business owners have always paid. The additional label will add some clarity for business owners located on the 100 Block of South Murphy Avenue. The FY 2026/27 Amended Fee Schedule (Attachment 1) details the proposed amendment. The amended fee schedule would be effective once approved.
EXISTING POLICY
Council Policy 7.1.1 Fiscal - Long Range Goals and Financial Policies:
• 7.1B.5.2 - User charges and fees should be adjusted at least annually to avoid sharp changes.
• 7.1B.5.4 - User fees should be established at levels which reflect the full cost of providing those services.
• 7.1B.5.5 - Council may determine for any service whether a subsidy from the General Fund is in the public interest.
California Government Code Section 66016(a): Prior to levying a new fee or service charge, or prior to approving an increase in an existing fee or service charge, a local agency shall hold at least one open and public meeting, at which oral or written presentations can be made, as part of a regularly scheduled meeting. Further, pursuant to Government Code section 66018, a published notice for this public hearing has been printed in the Sunnyvale Sun.
ENVIRONMENTAL REVIEW
A review of the City’s fees and charges does not require environmental review under the California Environmental Quality Act (CEQA) because it is a fiscal activity that does not commit the City to a specific project that will have a significant effect on the environment. (CEQA Guidelines, Section 15378(b)(4).)
DISCUSSION
Council Fiscal Policy guides staff to set fees for services to recover costs where possible and legally allowed. Staff continues to ensure that all fees provide for full cost recovery unless they are legally limited, market-based, or intentionally subsidized at Council’s direction. Applications for Outdoor Dining on the 100 Block of South Murphy Avenue would typically be subject to the application fee for (C7) Miscellaneous Plan Permit Residential 3 or more and non-residential (MPP or Unspecified), currently $535.00, plus the 5% technology fee, for a total of $561.75. This amount has been adjusted annually to account for increases in staff and administrative costs.
The proposed amendment would charge the same total amount of $561.75 and would have a clearer label in the Master Fee Schedule. The new fee would be labeled: Miscellaneous Plan Permit - Downtown Outdoor Dining Application (100 Block S Murphy).
FISCAL IMPACT
There is no fiscal impact related to adding an additional name for the existing fee.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
Notice of the public hearing on the proposed fees and charges was published in the Sunnyvale Sun on March 8 and 15. Notice was sent to the Building Industry Association and the Tri-County Division of the California Apartment Association, which requested notice pursuant to the Government Code. Boards and Commissions wishing to make comments, suggestions, or recommendations may testify at the public hearing.
STAFF RECOMMENDATION
Recommendation
Adopt a Resolution Amending the FY 2026/27 Fee Schedule to Clarify the Applicable Permit Fee for Downtown Outdoor Dining with No Change in Amount.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Jimmy Tran, Management Analyst
Reviewed by: Nancy Grove, Finance Manager
Reviewed by: Shaunn Mendrin, Planning Officer
Reviewed by: Trudi Ryan, Director of Community Development
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Reviewed by: Connie Verceles, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution and Exhibit FY 2026/27 Amended Fee Schedule