REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution to Approve the Final Engineer’s Report, Confirm the Assessment, and Levy and Collect an Annual Assessment for the Downtown Parking Maintenance District for Fiscal Year 2025/26
Report
BACKGROUND
The operation and maintenance of certain downtown parking areas are supported by an assessment district (the Downtown Parking Maintenance District, hereinafter called the “District”). On July 28, 2009, in response to property owners' ballot approval, the City Council adopted Resolution No. 398-09 (RTC No. 09-196), ordering the formation of the District. Council also confirmed the final report by the Assessment Engineer (“Engineer’s Report”) to levy an assessment for fiscal year (“FY”) 2009/10 and for each fiscal year thereafter by adjusting the annual assessment rate pursuant to the increase in the Consumer Price Index (“CPI”) for All Urban Consumers for the San Francisco-Oakland-San Jose area, as determined by the United States Department of Labor, from the previous year.
On May 20, 2025, Council adopted a resolution declaring its intention to levy and collect an assessment for the Downtown Parking Maintenance District for FY 2025/26, approving the preliminary Engineer's Report, and setting June 17, 2025, as the date and time for public hearing to levy of the proposed assessment (RTC No. 25-0348).
EXISTING POLICY
Council Resolution No. 6643, dated September 1, 1964, authorized the City to levy an annual assessment on all lands and improvements within the District to pay debt service, operations, maintenance, and improvement costs.
ENVIRONMENTAL REVIEW
Adoption of this Resolution is not a project within the meaning of the California Environmental Quality Act as the Act does not apply to governmental funding mechanisms or other government fiscal activities (CEQA Guideline Section 15378(b)(4)).
DISCUSSION
Francisco & Associates, Inc. (the Assessment Engineer) prepared the final Engineer's Report (Attachment 1) for the FY 2025/26 assessment. The assessment rate per parking space is proposed to increase by 2.6890% based on the change in CPI between February 2024 and February 2025.
This assessment rate will cover the annual estimate of $238,999 needed to operate and maintain the existing parking facilities, with the remainder going into the reserve fund. The reserve fund is anticipating an additional $43,200 in revenue from the car charging stations within the District, resulting in a total of $57,041.42 for the reserve fund after netting out the County Administration fees. Reserve funds are used to pay for longer-term capital projects and any deficits in the operating budget.
The total amount proposed to be assessed for FY 2025/26 is $255,394.37, which is 100% of the maximum assessment.
The County Tax Collector requires all individual assessments to be levied in even pennies so that the property tax bill can be split evenly into two payments. This results in the Total Deficit Parking Space multiplied by the FY 2025/26 Assessment per Deficit Parking Space being off by pennies from the FY 2025/26 Assessment Revenue. Individual assessment roll calculations are in Appendix B of the Engineer’s Report.
|
FY 2025/26 Assessment Rates per Benefit Zone |
|
Benefit Zone No. |
Assessment Rate Per Deficit Parking Space |
Total Deficit Parking Space |
Total Assessment |
Less County Administration (1%) |
Net Assessment Revenue |
|
1 |
$0.00 |
56.80 |
$0.00 |
$0.00 |
$0.00 |
|
2 |
$218.27 |
172.38 |
$37,625.38 |
($376.25) |
$37,249.13 |
|
3 |
$94.78 |
2,146.77 |
$203,470.86 |
($2,034.71) |
$201,436.15 |
|
4 |
$28.55 |
500.81 |
$14,298.13 |
($142.98) |
$14,155.14 |
|
Total |
|
2,876.76 |
$255,394.37 |
($2,553.94) |
$252,840.42 |
Pursuant to California Streets and Highways Code Section 22631, Council adoption of the Resolution (Attachment 2) to approve or modify the final Engineer's report constitutes the levy of the assessment for FY 2025/26.
FISCAL IMPACT
The District’s FY 2025/26 planned operating budget is $238,999. Approval of the recommended FY 2025/26 assessment will generate net revenue of $252,840.42 after County administrative fees (1% of the assessment) are applied. The anticipated difference of $13,841.42 between the planned expenditure and the net assessment revenue will be deposited into the reserve fund. There are no capital projects planned for FY 2025/26. This year, the reserve fund is also expected to recognize revenue from the electric car charging stations within the District of $43,200. The projected reserve fund balance in Fund 2400 - Parking District Fund on June 30, 2025, is $919,741.
Due to the timing of the final Engineer’s Report and the development of the FY 2025/26 Recommended Budget, the revenue and expenditure figures presented in this report are different from the figures presented in the FY 2025/26 Recommended Budget.
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 NOVA Workforce Services 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.
ALTERNATIVES
1. Adopt a Resolution to approve the final Engineer's Report, confirm the assessment, and levy and collect an annual assessment for the FY 2025/26 Downtown Parking Maintenance District.
2. Modify the final Engineer's Report, adopt a resolution to approve the modified final Engineer's Report, confirm the assessment, and levy and collect an annual assessment for the FY 2025/26 Downtown Parking Maintenance District assessment.
3. Do not take any action to give the City the necessary authority to levy and collect the FY 2025/26 assessment.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Adopt a Resolution to approve the final Engineer's Report, confirm the assessment, and levy and collect an annual assessment for the FY 2025/26 Downtown Parking Maintenance District. This alternative will allow the City to continue levying the assessment for FY 2025/26 to pay for the operation and maintenance of the District.
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: Sherine Nafie, City Property Administrator
Reviewed by: Chip Taylor, Director, Public Works
Reviewed by: Matthew Paulin, Director, Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Fiscal Year 2025/26 Final Engineer's Report
2. Resolution to Approve the Final Engineer's Report, to Confirm the Assessment, and Levy and Collect Annual Assessment for the Downtown Parking Maintenance District for FY 2025/26