REPORT TO COUNCIL
SUBJECT
Title
Approve the Fiscal Year (FY) 2026/27 Preliminary Engineer’s Report for the Downtown Parking Maintenance District, Adopt a Resolution of Intention to Levy and Collect an Assessment for the Downtown Parking Maintenance District for FY 2026/27, and Set the Date of June 16, 2026 for the Public Hearing on the Proposed Assessment
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 owner’s approval by ballot, the City Council adopted Resolution No. 398-09 (RTC No. 09-196), ordering the formation of the District. Council also confirmed the final Engineer’s Report to levy an assessment for FY 2009/10 and for each fiscal year thereafter by adjusting the annual assessment rate based upon the previous year’s change 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.
On June 17, 2025, City Council approved the current (FY 2025/26) assessment rates (RTC No. 25-0349), as shown in Table 1 below:
|
Table 1 - FY 2025/26 Assessment Rates per Benefit Zone |
|
Benefit Zone No. |
Assessment Rate Per Deficit Parking Space |
Total Deficit Parking Spaces |
Total Assessment Revenue |
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 |
The benefit zones are shown on the District diagram in the Engineer’s Report (Attachment 1, Appendix A). Property owners in Benefit Zone 1 (commonly known as CityLine Sunnyvale, formerly known as Town Center) are not assessed because the CityLine Sunnyvale developer is required to maintain the new parking facilities as well as the existing parking structure adjacent to Target. Additionally, property owners in Benefit Zone 1, south of Iowa Avenue, are able to use the available parking facilities, even though CityLine pays for the maintenance and operation of those parking facilities. Benefit Zones 2, 3, and 4 have a different assessment rate based upon the City’s operation and maintenance costs for the public parking lots within each benefit zone.
In FY 2025/26 the assessment rates per deficit parking space of each benefit zone were levied at 100% of the maximum assessment rate per deficit parking space.
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 the subject Resolution of Intention is not a project within the meaning of the California Environmental Quality Act (CEQA) as CEQA does not apply to governmental funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant impact on the environment (CEQA Guideline Section 15378(b)(4)).
DISCUSSION
Francisco & Associates, Inc., the Assessment Engineer, has prepared the preliminary Engineer’s Report (Attachment 1) for the FY 2026/27 assessment.
For each fiscal year, the maximum annual assessment rates are calculated by adjusting the previous year’s maximum assessment rate by changes to CPI for San Francisco-Oakland-San Jose Area as determined by the U.S. Department of Labor. The increase in CPI applied to FY 2026/27 rates is +2.4769%. This year’s proposed assessment is 100% of the maximum assessment.
The District is also anticipating an additional revenue of $43,200 in FY 2026/27 from electric car charging stations that are installed in some of the parking spaces within the District. This revenue will be deposited in the reserve fund. Reserve funds are used to pay for longer-term capital projects and any deficits in the operating budget.
The number of deficit parking spaces for each parcel is determined based on the difference between the number of parking spaces needed per the City’s Parking Demand Guidelines and the number of existing parking spaces located on the parcels within the District. The assessment for each parcel is based upon an assessment rate multiplied by each parcel’s corresponding deficit parking spaces.
The County Tax Collector requires all individual assessments to be levied in even pennies so that the property tax bill can be split evenly in two payments. This results in having the Total Deficit Parking Space multiplied by the FY 2026/27 Assessment per Deficit Parking Space off by pennies from the FY 2026/27 Assessment Revenue. Individual assessment roll calculations are in Appendix B of the preliminary Engineer’s Report (Attachment 1).
A public hearing process is required by state law to provide the City authority to levy and collect the FY 2026/27 assessment for the District. Adoption of the Resolution of Intention (Attachment 2) will approve the preliminary Engineer’s Report, authorize publication of the Notice of Public Hearing, and set a public hearing date for June 16, 2026.
|
Table 2 - FY 2026/27 Proposed Assessment Rates per Benefit Zone |
|
Benefit Zone No. |
Assessment Rate Per Deficit Parking Space |
Total Deficit Parking Spaces |
Total Assessment Revenue |
Less County Administration (1%) |
Net Assessment Revenue |
|
1 |
$0.00 |
56.80 |
$0.00 |
$0.00 |
$0.00 |
|
2 |
$223.68 |
171.10 |
$38,271.65 |
($382.72) |
$37,888.93 |
|
3 |
$97.12 |
2,134.05 |
$207,258.94 |
($2,072.59) |
$205,186.35 |
|
4 |
$29.26 |
500.81 |
$14,653.70 |
($146.54) |
$14,507.16 |
|
Total |
|
2,862.76 |
$260,184.29 |
($2,601.85) |
$257,582.44 |
While CityLine Sunnyvale is part of the Downtown Parking Maintenance District, it is obligated to provide all its parking space requirements within the Project, so no effect on the District is anticipated.
FISCAL IMPACT
The planned FY 2026/27 operating budget for the maintenance and administration of the District is $231,333 in Fund 2401 - Parking District Fund As shown in Table 2 above, approval of the recommended FY 2026/27 assessment is expected to generate a total revenue of $260,184.29. The City is expected to receive a net assessment revenue of $257,582.44 after County administrative fees are subtracted. The anticipated difference of $26,249.44 between the planned expenditure and the net assessment revenue will be deposited in the reserve fund. The reserve fund is also expected to recognize revenue from the electric car charging station within the District in the amount of $43,200. The projected reserve fund balance on June 30, 2026 is $1,069,558. Reserve funds are used to pay for longer-term capital projects and any deficits in the operating budget.
Due to timing of the Final Engineer’s Report and the development of the FY 2026/27 Recommended Budget, the revenue and expenditure figures may be different from the figures presented in the final FY 2026/27 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 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.
On or around March 15, 2026, informational letters were mailed to each property owner explaining the proposed assessment methodology and assessment rate per deficit parking space. The letters explained the demand for on-site private parking, the number of existing on-site parking spaces, and the number of deficit parking spaces provided from the District.
RECOMMENDATION
Recommendation
Approve the Fiscal Year (FY) 2026/27 preliminary Engineer’s Report for the Downtown Parking Maintenance District, adopt a Resolution of Intention to Levy and Collect an Assessment for the Downtown Parking Maintenance District for FY 2026/27, and set the date of June 16, 2026 for the public hearing on the levy of the proposed Assessment.
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: Ramana Chinnakotla, Interim Director, Public Works
Reviewed by: Matthew Paulin, Director of Finance
Approved by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Fiscal Year 2026/27 Preliminary Engineer’s Report
2. Resolution of Intention