REPORT TO COUNCIL
SUBJECT
Title
Adoption of a Resolution of Intention for Parking Maintenance District No. 122 - Franklin Square [Council Pillar: Deliver and Enhance Quality Efficient Services and Infrastructure]
Report
BACKGROUND
Parking Maintenance District No. 122 was formed in 1965 to maintain 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 Parking Maintenance District No. 122 was divided between the City and property owners. In 2002, the City Council passed a motion at a public hearing in which the City assumed all future costs for operation and maintenance. Under this alternative collection method, the property owners contribute annually to pay for capital repairs of the parking lot and associated walkways. The annual contribution totals $14,200 less the earned interest on the accumulating balance. The City, through the General Fund, is responsible for covering the annual maintenance.
Adoption of the proposed resolution is the initial step necessary to set the annual budget for Parking Maintenance District No. 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 2020/21 assessment and details on a June 2, 2020 public hearing to approve the assessments.
DISCUSSION
The proposed FY 2020/21 assessment to property owners will be $10,374. Accrued interest earned in FY 2018/19 in the amount of $3,826 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.
The total proposed FY 2020/21 expenditure budget for Parking Maintenance District No. 122 is $155,571. The operating budget includes funding for routine maintenance and operation performed by the Department of Public Works that is funded by the General Fund. There are no proposed Capital outlay expenditures to cover maintenance and improvements of parking lots and associated walkways in FY 2020/21. 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.
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 2, 2020 to approve the Director’s Report for FY 2020/21, 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 meeting with the property owners and interested parties to discuss these requirements has been scheduled for May 5, 2020. Notices for the public hearing will be sent out following adoption of the subject Resolution of Intention.
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 2020/21 expenditure budget for Parking Maintenance District No. 122 is $155,571, which is below the $174,660 included for FY 2020/21 in the FY 2020/21 and FY 2020/21 Adopted Biennial Operating Budget based on actual expenditure trends. This budget amount will be incorporated into the FY 2020/21 Operating Budget adjustments that will be brought forward with the FY 2020/21 and FY 2021/22 Biennial Capital Budget.
COORDINATION
This report has been coordinated with the Finance Department and 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> .
On April 22, 2020, the Notice of Public Hearing for the June 2, 2020 Council meeting will be published in the Santa Clara Weekly. In addition, the notice will be posted at the City Clerk’s Office and mailed to all property owners within the District.
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 2, 2020 to approve the Director’s Report FY 2020/21; 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: Deanna J. Santana, City Manager
ATTACHMENTS
1. Director’s Report FY 2020-21
2. Notice of Public Hearing
3. Resolution of Intention