REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution to Designate Charles Street Between W. McKinley Avenue and W. Iowa Avenue as Residential Preferential Parking Zone “A”, and Find that the Action is Exempt from the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15061(b)(3)
Report
BACKGROUND
At the June 25, 2018 Planning Commission meeting, the Planning Commission approved a Special Development Permit (PLNG 2017-7379) (RTC No. 18-0521) to redevelop a commercial site into a five-story mixed-use development at 311 S. Mathilda Avenue consisting of 4,860 square feet of restaurant floor area and 75 multi-family residential units of which four (4) townhome-style rental units would be located along Charles Street. The project would provide 82 residential and 47 restaurant parking stalls. This development was eventually constructed and was named Maxwell Apartments located at 490 W. McKinley Avenue. At the meeting, residents on Charles Street expressed concerns about possible increases in on-street parking demand, cut-through traffic, and speeding along Charles Street caused by this project.
Following the June 25, 2018 Planning Commission meeting, the City received a petition from the residents of Charles Street between W. McKinley Avenue and W. Iowa Avenue in summer 2018, requesting the establishment of a Residential Preferential Parking Zone with a 24-hour parking restriction. The petition was supported by the majority of the residents (78%, or 14 out of 18) to designate the street segment as a Residential Preferential Parking Zone.
Subsequently, on April 27, 2020, the Planning Commission approved another Special Development Permit (PLNG 2019-7269) (RTC No. 20-0464) to redevelop six City-owned parcels on S. Mathilda Avenue and Charles Street into a 90-unit affordable multi-family housing project of which seven (7) townhome-style rental units are located along Charles Street and consisting of 90 parking stalls. This development was eventually constructed as Meridian Apartments located at 397 S. Mathilda Avenue.
Charles Street is the only street with on-street parking that is adjacent to both new residential developments. Staff recommended conducting a parking study after both new residential developments were constructed and occupied. In July 2024, staff were notified that both residential developments had completed construction and reached more than 75% occupancy, and therefore, the parking study was conducted, as described below. Attachment 1 shows an aerial map of the segment of Charles Street that is of interest and the locations of the two new residential developments.
On April 21, 2026, City Council adopted Ordinance No. 3252-26 to amend Sunnyvale Municipal Code (SMC) Chapter 10.26 relating to Preferential Parking on Residential Streets. This ordinance will take into effect 30 days after its adoption.
EXISTING POLICY
Sunnyvale Municipal Code (SMC) Chapter 10.26, Preferential Parking on Residential Streets, allows the City Council to designate by ordinance or resolution certain residential streets as a preferential parking zone.
ENVIRONMENTAL REVIEW
This resolution is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061 (b)(3) since it can be seen with certainty that there is no possibility that the adoption and implementation of this resolution may have a significant effect on the environment.
DISCUSSION
Pursuant to SMC Section 10.26.020, Establishment of Residential Preferential Parking Zones, the City Council may designate by ordinance or resolution certain residential streets or alleys or any portions thereof not less than one hundred fifty feet in length, or either or both sides thereof, as a residential preferential parking zone for the benefit of residents living within the preferential parking zone, in which zone vehicles displaying a permit or other authorized indicia may be exempt from parking prohibitions or restrictions established pursuant to Section 10.24.010, 10.23.020 or 10.24.030 and otherwise posted, marked or noticed.
According to standard practice, the City applies a 74 percent on-street parking occupancy threshold, consistent with the Institute of Transportation Engineers (ITE) guidance, to determine whether the existing on-street parking supply adequately meets the parking demand.
In 2018, after receiving the neighborhood petition, staff performed a parking study along Charles Street between W. McKinley Avenue and W. Iowa Avenue; however, results indicated that it did not meet the minimum parking occupancy threshold to recommend a Residential Preferential Parking Zone.
In July 2024, staff was notified that both residential developments at 490 W. McKinley Avenue and 397 S. Mathilda Avenue had completed construction and had reached more than 75% occupancy. Staff then conducted a new parking study along this segment in September 2024, April 2025, and May 2025. These counts showed that the minimum parking threshold was met or exceeded. The data collected are summarized in Attachment 2. The parking occupancy counts collected in 2018 are also included for comparison with parking conditions before the developments.
Findings
According to SMC Section 10.26.030 (as adopted by City Council on April 7, 2026), the City Council may designate an area as a Residential Preferential Parking Zone based upon the following criteria:
(a) Non-residential vehicles do, or may, substantially interfere with the use of the majority of available public on-street or alley parking spaces by residents living within the proposed residential preferential parking zone.
Staff findings: After the completion and occupancy of the two new high-density developments at 490 W. McKinley Avenue and 397 S. Mathilda Avenue, the City conducted new parking occupancy studies in 2024 and 2025. During this period, several additional downtown high-density mixed-use developments were also constructed and occupied. Compared with the 2018 parking study, the 2024 and 2025 results show a substantial increase in on-street parking occupancy, indicating that the higher demand is attributable to the new high-density developments immediately adjacent to the study area.
(b) The interference by non-residential vehicles referred to in subsection (a) of this section occurs at regular and significant intervals. For purposes of this chapter, such interference shall be presumed to be regular and significant if it occurs, under typical circumstances, not less frequently than three times per week.
Staff findings: Conditions were confirmed to occur at least three times per week and four time periods per day based on the parking study and field observations.
(c) The non-residential vehicles parked within the area of the proposed zone create traffic congestion, noise, or other disruption (including shortage of parking spaces for residents and their visitors) that disrupts neighborhood life.
Staff findings: Staff made multiple visits and observed residents installing orange cones or garbage bins in front of their residence to reserve parking. Staff also received reports from residents experiencing obstructed ingress and egress due to vehicles parked too close to their driveway. Furthermore, our data confirms the number of vehicles parked along this segment consistently exceeds the available on-street parking capacity.
(d) A shortage of reasonably available and convenient residentially related parking spaces exists in the area of the proposed zone.
Staff findings: Based on the data collected, on-street parking occupancy rates on Charles Street throughout the day exceed the 74 percent threshold established by ITE guidance. This guidance represents the industry standard for evaluating whether parking supply adequately meets demand on a residential street or within a neighborhood. As a result of these elevated occupancy levels, few on-street parking spaces are available for residents and their visitors.
(e) No alternative solution is feasible or practical.
Staff findings: Charles Street between W. McKinley Avenue and W. Evelyn Avenue is currently designated as a Residential Preferential Parking Zone, with a 7-hour parking limit in effect from 8 a.m. to 6 p.m., Monday through Friday. South of W. McKinley Avenue, on-street parking along Charles Street, as well as on W. McKinley Avenue, Florence Street, and W. Iowa Avenue, is currently available to the public on a first-come, first-served basis, providing additional on-street parking supply for this demand. The adjacent developments as well as existing homes are already constructed and meet their parking supply requirements; therefore, revisions to their parking supply are not feasible. Most typical transportation demand management tools to reduce vehicle parking needs such as transit passes and ridesharing programs are not applicable for a predominately residential area such as this situation. It is staff’s recommendation to implement a Residential Preferential Parking Zone to this segment as the most feasible and practical solution to address residents’ concerns about high parking occupancy and illegal parking that can obstruct sight distance, curb ramps, driveways and fire hydrants.
Boundary and Name of the Residential Preferential Parking Zone
The proposed Residential Preferential Parking Zone would cover Charles Street between W. McKinley Avenue and W. Iowa Avenue, and will be designated as Residential Preferential Parking Zone A. Since this would be adjacent to an existing Residential Preferential Parking Zone, it is recommended to begin implementing a naming convention to all zones. Renaming of existing zones would be implemented in 2027.
Parking Restrictions and Issuance of Permits
Staff mailed notices to all property owners and residents of each parcel within the proposed boundary of Zone A (“Boundary”), including townhome-style rental units fronting Charles Street at both new multi-family residential developments, to gauge support for establishing a Residential Preferential Parking Zone. Based on the responses received, a majority (96%, or 26 out of 27) indicated support for establishing a Residential Preferential Parking Zone. Respondents were also asked whether they would support a 24-hour, 7 days a week parking restriction, and 89% (24 out of 27) expressed support for this option. Overall, the outreach results demonstrate clear majority support for implementing a Residential Preferential Parking Zone in accordance to amended SMC Chapter 10.26, with a 24-hour, 7 days a week parking restriction along Charles Street between W. McKinley Avenue and W. Iowa Avenue. Implementing a Residential Preferential Parking Zone would restrict parking along this segment of Charles Street to vehicles displaying a valid Residential Parking Permit.
Permits are issued on a calendar-year basis, and each parcel within the Boundary would be eligible to purchase up to four (4) permits annually. Guest permits would be issued pursuant to guidance issued by the Department of Public Works and approved by the Director of Public Works. Participation in the program is voluntary; however, residents who elect not to participate would not be permitted to park on the street within the Boundary.
Ordinance No. 3252-26 amending SMC Chapter 10.26 becomes effective 30 days after adoption which will be April 21, 2026. Staff will install signage to establish Residential Preferential Parking Zone A within the Boundary, prior to the effective date.
FISCAL IMPACT
Staff estimates that the initial cost of implementing a Residential Permit Parking Zone on Charles Street between W. McKinley Avenue and W. Iowa Avenue will be approximately $5,800, which covers the installation of time-limit parking signs. These initial costs will be funded by a developer contribution, in accordance to the Conditions of Approval for the development at 311 S. Mathilda Avenue (PLNG 2017-7379), which is now named Maxwell Apartments located at 490 W. McKinley Avenue.
The cost of printing residential parking permits will be recovered through a permit fee. The cost of the annual permit per vehicle is currently set at $28.00 under the Fiscal Year 2025/26 Adopted Fee Schedule. Permit costs are re-evaluated and adjusted annually as part of the establishment of the City’s Fiscal Year Fee Schedule to ensure cost recovery.
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.
STAFF RECOMMENDATION
Recommendation
Adopt a resolution to designate Charles Street between W. McKinley Avenue and W. Iowa Avenue as Residential Preferential Parking Zone A with parking restrictions in effect for 24-hours a day, 7 days a week, and find the action is exempt from the requirements of the CEQA pursuant to CEQA Guidelines Section 15061(b)(3).
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: Joshua Llamas, Transportation Planner
Reviewed by: Lillian Tsang, Principal Transportation Engineer/Planner
Reviewed by: Angela Obeso, Transportation and Traffic Manager
Reviewed by: Ramana Chinnakotla, Interim Director, Public Works
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Aerial Map
2. On-Street Parking Occupancy Data
3. Draft Resolution