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 2024/25
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, City Council adopted Resolution No. 398-09 (RTC No. 09-196), ordering 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 21, 2024, Council adopted a resolution declaring its intention to levy and collect an assessment for the Downtown Parking Maintenance District for FY 2024/25, approving the preliminary Engineer's Report, and setting June 25, 2024 as the date and time for public hearing to levy of the proposed assessment (RTC No. 24-0383).
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 2024/25 assessment. The assessment rate per parking space is proposed to increase by 2.3661% based on the change in CPI between February 2023 and February 2024.
This assessment rate will cover the annual estimate needed to operate and maintain the existing parking facilities with a deficit of about $1,994 that will be covered from the reserve fund. The reserve fund is anticipating an additional revenue of $43,200 from the car charging stations within the District. 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 2024/25 is $250,450 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 in two payments. This results in the Total Deficit Parking Space multiplied by the FY 2024/25 Assessment per Deficit Parking Space off by pennies from the FY 2024/25 Assessment Revenue. Individual assessment roll calculations are in Appendix B of the Engineer’s Report.
|
FY 2024/25 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 |
$212.56 |
172.38 |
$36,641.09 |
($366.41) |
$36,274.68 |
|
3 |
$92.29 |
2,165.86 |
$199,887.22 |
($1,998.87) |
$197,888.35 |
|
4 |
$27.80 |
500.81 |
$13,922.52 |
($139.23) |
$13,783.29 |
|
Total |
|
2,895.85 |
$250,450.83 |
($2,504.51) |
$247,946.32 |
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 2024/25.
FISCAL IMPACT
The planned operating budget for the District for FY 2024/25 is $249,940. Approval of the recommended FY 2024/25 assessment will generate revenue of $250,450.83. The City receives a net assessment revenue of $247,946.32 after County administrative fees (1% of the assessment) are applied. The anticipated difference of $1,993.68 between the planned expenditure and the net assessment revenue will be taken from the reserve fund. The proposed capital expenditure of $138,397 in the City budget will also be taken from the reserve fund. For FY 2024/25 the reserve fund is 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, 2024 is $947,599. Due to timing of the final Engineer’s Report and the development of the FY 2024/25 Recommended Budget, the revenue and expenditure figures may be different from the figures presented in the final FY 2024/25 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, to confirm the assessment, and levy and collect an annual assessment for the Downtown Parking Maintenance District for FY 2024/25.
2. Modify the final Engineer's Report, adopt a resolution to approve the modified final Engineer's Report and to confirm the assessment, and levy and collect an annual assessment for the Downtown Parking Maintenance District assessment for FY 2024/25.
3. Do not take any action to give the City the necessary authority to levy and collect the assessment for FY 2024/25.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Adopt a Resolution to approve the final Engineer's Report, to confirm the assessment, and levy and collect an annual assessment for the Downtown Parking Maintenance District for FY 2024/25.
This alternative will allow the City to continue levying the assessment for FY 2024/25 to pay for the operation and maintenance of the District.
Staff
Prepared by: Sherine Nafie, City Property Administrator
Reviewed by: Chip Taylor, Director, Public Works
Reviewed by: Tim Kirby, Director, Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Fiscal Year 2024/25 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 2024/25