REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Adoption of a Resolution Approving the Levy of Benefit Assessment upon the City of Santa Clara 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. From 1965 - 2002, the cost of maintenance and operation of PMD 122 was divided between the City and property owners. There have been several changes in how maintenance and operation costs have been collected over the years and 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.
On April 18, 2023, Council adopted a Resolution of Intention (Resolution No. 23-9217) related to the proposed maintenance assessments for PMD 122. In addition, the Resolution established June 6, 2023 as the date that City Council would hear testimony and act upon the attached Resolution (Attachment 1) and Director’s Report (Attachment 2).
DISCUSSION
The proposed FY 2023/24 assessment to property owners will be $12,019. Per the terms of PMD 122, 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 end of FY 2021/22 the interest-bearing account contained $156,961.
The final recommended operating budget is $136,990 for FY 2023/24, which is $531 less than the FY 2022/23 expenditure budget, primarily due to a small decrease to interfund services which includes overhead. 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, and parking lot/walkway sweeping. There are no proposed Capital outlay expenditures to cover maintenance and improvements of parking lots and associated walkways in FY 2023/24. Both parking lots at the complex were resurfaced and striped during the summer of 2019. The work was funded by previously collected property owner assessments.
Proposition 218 requires that written ballots be sent and returned if there are proposed increases greater than any previously approved assessments. Since the proposed assessments of $12,019 ($14,200 minus $2,181 in interest) for FY 2023/24 are less than the greatest previously approved assessments, no ballots and approvals are required from the property owners. Therefore, staff recommends overruling any protests if received. The assessments to the property owners cannot be sent out until the Director’s Report is approved at a public hearing.
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 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 $136,990.
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> or at the public information desk at any City of Santa Clara public library.
On May 24, 2023, the Notice of Public Hearing for the June 6, 2023 Council meeting was published in the Santa Clara Weekly. In addition, the notice was posted at the City Clerk’s Office, as well as at the public information desk at each City of Santa Clara public library and mailed to all property owners within the District.
ALTERNATIVES
1. Adopt a Resolution approving the levy of benefit assessment upon the City of Santa Clara Parking Maintenance District No. 122 and approving, confirming, and adopting the Director’s Report for FY 2023/24.
2. Do not adopt a Resolution to move forward with collecting the property owner assessments for FY 2023/24.
RECOMMENDATION
Recommendation
Alternative 1: Adopt a Resolution approving the levy of benefit assessment upon the City of Santa Clara Parking Maintenance District No. 122 and approving, confirming, and adopting the Director’s Report for FY 2023/24.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. Resolution
2. Director’s Report FY 2023/24
3. Notice of Public Hearing