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 2018/19
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 formation of the District. Council also confirmed the final 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 based upon the previous year’s change in the Consumer Price Index (All Urban Consumers for the San Francisco-Oakland-San Jose area, as determined by the United States Department of Labor, the “CPI”).
On May 22, 2018, the City Council adopted a resolution declaring its intention to levy and collect an assessment for the Downtown Parking Maintenance District for FY 2018/19, approving the preliminary Engineer's Report (Attachment 1), and setting June 26, 2018 as the date and time for public hearing on the levy of the proposed assessment (RTC No. 18-0410).
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 Parking 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 2018/19 assessment. The assessment rates are to increase +3.564% based on the CPI change between February 2017 and February 2018 as shown in the Table below.
|
FY 2018/19 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 |
$173.24 |
172.38 |
$29,863.10 |
($298.63) |
$29,564.47 |
|
3 |
$75.22 |
2,137.46 |
$160,779.58* |
($1,607.80) |
$159,171.78 |
|
4 |
$22.66 |
371.28 |
$8,413.18* |
($84.13) |
$8,329.05 |
|
Total |
|
2,737.92 |
$199,055.86 |
($1,990.56) |
$197,065.30 |
*Cents amounts slightly different due to rounding
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 2018/19.
FISCAL IMPACT
The planned budget for maintenance and administration of the parking lots for
2018/19 is $142,588, which includes annual operating costs and final slurry seal and restriping of the parking lots. Approval of the recommended FY 2018/19 assessment will generate revenue of approximately $199,056. The City receives the net assessment revenue of $197,065 after County administrative fees (1% of the assessment) are subtracted. The difference of $54,477 between net assessment revenues and planned expenditures will be deposited to the Parking District Fund reserve and will continue to be used to fund future periodic capital improvements as well as to supplement annual operating and maintenance costs. The projected reserve fund balance for June 30, 2018 is $362,921. Due to timing of the Final Engineer’s Report and the development of the FY 2018/19 Recommended Budget, the revenue and expenditure figures differ from the figures represented in the FY 2018/19 Recommended Budget. In addition, the FY 2018/19 Proposed Budget includes revenue projections that do not assume the increased assessment. If approved, future budgets will be amended to reflect approved assessment rates.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
ALTERNATIVES
1. Adopt the 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 2018/19.
2. Modify the final Engineer's report, adopt the 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 2018/19.
3. Do not take any action to give the City the necessary authority to levy and collect the assessment for FY 2018/19.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Adopt the 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 2018/19.
This alternative will allow the City to continue levying the assessment for FY 2018/19.
Staff
Prepared by: Sherine Nafie, City Property Administrator
Reviewed by: Charles Taylor, Director, Public Works
Reviewed by: Timothy J. Kirby, Director, Finance
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Fiscal Year 2018/19 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 2018/19.