REPORT TO COUNCIL
SUBJECT
Title
Adoption of a Resolution of Intention for Parking Maintenance District No. 122 - Franklin Square
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Parking Maintenance District No. 122 (PMD 122) was formed in 1965 for the parking lots, arcades, fountains, sidewalks, landscaping, irrigation, lights, and utilities within Franklin Square, which is bounded by Benton Street, Homestead Road (formerly known as Liberty Street), Monroe Street, and Jackson Street. There have been several changes in how maintenance and operation costs have been collected over the years. In 2002, the City Council passed a motion at a public hearing in which the City assumed all future costs for operation and maintenance and in May 2003 adopted Resolution 7026. Under the collection method contained in Resolution 7026, the property owners contribute annually to pay for capital repairs of the parking lot and associated walkways. The fixed annual contribution from the property owners totals $14,200, less the earned interest on the accumulating balance. The City, through the General Fund, is responsible for covering the costs for annual maintenance and operations of PMD 122 and that has continued to be the arrangement through the present day.
DISCUSSION
Adoption of the proposed resolution is the initial step necessary to set the annual budget for PMD 122. The approval process requires the preparation of a Director’s Report (Attachment 1) explaining the preparation and basis of assessments; publication and posting of a Notice of Public Hearing (Attachment 2); and holding a public hearing on the annual assessments. Following approval of the subject Resolution of Intention (Attachment 3), each property owner will be sent a letter containing the proposed FY 2023/24 assessment and details on a June 6, 2023 public hearing to approve the assessments.
The proposed FY 2023/24 assessment to property owners totals $12,019. Accrued interest earned in FY 2021/22 in the amount of $2,181 will be used to reach the $14,200 annual requirement. These funds are placed into an account that generates interest income and are used to pay for capital repair projects as needs arise. At the close of FY 2021/22, the interest-bearing account contained $156,961.
The total proposed FY 2023/24 expenditure budget for PMD 122 is $133,269, which is $4,242 less than the FY 2022/23 expenditure budget primarily due to interfund services calculations. The operating budget includes funding for routine maintenance and operation performed by the Department of Public Works as well as contractors, which is all funded by the General Fund. This includes regular maintenance for landscaping, trees, fountains, and parking lot/walkway sweeping. There are no proposed Capital project expenditures for parking lots and associated walkways in FY 2023/24. Both parking lots at the complex were resurfaced and striped during the summer of 2019, which was funded by previously collected property owner assessments.
Pursuant to the 2002 City Council action, staff is recommending the adoption of the subject Resolution of Intention; setting a public hearing date of June 6, 2023 to approve the Director’s Report for FY 2023/24; and the authorization of the publication and posting of the public hearing. The assessments to the property owners cannot be sent out until the Director’s Report is approved at a public hearing.
A conference call with the property owners to discuss these requirements has been scheduled for May 15, 2023. Notices for the public hearing will be sent out following adoption of the subject Resolution of Intention.
Staff has previously provided responses to Council questions about the procedures for modifying and dissolving PMD 122 as well as paid parking. Those reports are included in Attachment 4 and 5.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Approval of the proposed assessment maintains the funding source for future capital repairs to parking lots and walkways located within Franklin Square. The City’s General Fund remains as the funding source for routine maintenance and operating costs for the Downtown Parking Maintenance District. The total proposed FY 2023/24 expenditure budget for Parking Maintenance District No. 122 is $133,269 subject to appropriation of funds.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Adopt a Resolution of Intention to order that the alternative method for the levy of benefit assessment be made applicable to the City of Santa Clara Parking Maintenance District No. 122;
2. Set a hearing date of June 6, 2023 to approve the Director’s Report FY 2023/24; and
3. Authorize the publication, mailing, and posting of the Notice of Public Hearing as stated in the Resolution of Intention.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Office of the City Manager
ATTACHMENTS
1. Director’s Report FY 2023/24
2. Notice of Public Hearing
3. Resolution of Intention
4. Agenda Report 22-1672 from January 25, 2022
5. Agenda Report 22-713 from June 21, 2022