HomeMy WebLinkAbout2020-12-14 City Council Agendas (24)
City of Palo Alto (ID # 11746)
City Council Staff Report
Report Type: Informational Report Meeting Date: 12/14/2020
City of Palo Alto Page 1
Summary Title: Annual Report Development Impact Fees
Title: Annual Status Report on the Development Impact Fees Schedule
From: City Manager
Lead Department: Administrative Services
Recommendation
This is an information report; no action is required.
Discussion
The Annual Status Report on Development Impact Fees provides specific information about
development impact fees imposed by the City. The schedule prepared in accordance with
Government Code Section 66006 (AB1600) must be made available to the public at least 15
days before the Council meeting at which it is considered and within 180 days of the close of
the fiscal year. Since the report is scheduled on the City Council Agenda of January 25, 2021, it
is being included as an information report this December to allow time for public notice in
excess of the minimum 15-day advanced posting requirement. Additional information will be
available in the January 25, 2021 report.
Stakeholder Engagement
This report has been prepared by the Accounting Division and reviewed by partner
departments including the City Attorney’s Office, and the Planning and Development Services
Department.
Resource Impact
This is an Informational Report, so no actions or adjustments are needed at this time.
Environmental Review
This is not a project for purposes of the California Environmental Quality Act (CEQA).
Attachments:
• Attachment A: Annual Report on Development Impact Fees FY2020
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2020
Stanford Research Park/ San Antonio/West
FUND El Camino Fund Bayshore Fund
Purpose and Authority Traffic impact fees imposed on new Traffic impact fees imposed on new
for Collection nonresidential development in the nonresidential development in the
Stanford Research Park/El Camino San Antonio/West Bayshore Areas
Real CS zone to fund improvements to fund capacity improvements at
at eight identified intersections.four identified intersections.
PAMC Ch. 16.45, PAMC Ch. 16.46
Amount of the Fee City ceased collecting effective FY 2020 City ceased collecting effective FY 2020
Fund Balance July 1, 2020 $3,349,581 $1,308,009
Activity in 2019-20
Revenues
Fees Collected 0 0
Interest Earnings 73,752 18,987
Unrealized Gain/Loss Investments 74,438 16,860
-----------------------------------------------------------------------------------------------------------------------
Total Revenues $148,190 $35,847
Operating Transfer to Capital Projects Fund 0 (900,000)
-----------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 (900,000)
-----------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2020 $3,497,771 $443,857
Other Commitments/Appropriations
Reserve for Reappropriation -
Reserve for Unrealized Gain on Investments (90,015) (22,990)
Net Funds Available $3,407,756 $420,867
USE OF FEES:USE OF FEES:
No expenditures have been made for this
fund in Fiscal Year 2020. In FY 2020, City
ceased collecting the Stanford Research /
El Camino Real CS Zone fee established
in 1989. Two of the projects envisioned
for funding have been completed and two
are funded and in process.
Budget transfer of $900k made to Capital
Project Fund in FY 2020 for Traffic Signal and
Intelligent Transportation Systems (PL-05030).
In FY 2020, City ceased collecting the San
Antonio/West Bayshore area fee established in
1986. Most of development anticipated has
occured, and while not all the original projects
envisioned for funding have been pursued by
the City, remaining funds will be programmed
for alternative improvements in the area,
subject to a nexus analysis/finding and City
Council approval.
Page 1 of 11
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2020
Commercial Housing University Avenue Parking
FUND Impact Fee Fund In-Lieu Fund
Purpose and Authority
Fees imposed on commercial and
industrial Fees collected from non-residential
for Collection development to offset the demand that development within the University Ave.
new jobs create for low and moderate-Parking Assessment District in lieu of
income housing in the City providing the required number of
parking spaces.
PAMC Ch.16.65 PAMC Ch 16.57
Amount of the Fee
Hotel / Retail / Other Non Residential:
$21.26 per sq. ft.
Office/R&D: $36.53 per sq. ft. $106,171 per space
Fund Balance July 1, 2020 $24,797,386 $6,117,748
Activity in 2019-20
Revenues
Fees Collected 114,760 0
Interest Earnings 275,160 134,604
Unrealized Gain/Loss Investments 265,591 132,142
-----------------------------------------------------------------------------------------------------------------------
Total Revenues 655,511 266,746
Expenditures
Salaries and Benefit (15,704)
Planning (7,500)
Liability Insurance (567)
Operating transfer to General Benefit Fund (477)
-----------------------------------------------------------------------------------------------------------------------
Total Expenditures (24,248) 0
-----------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2020 $25,428,649 $6,384,494
Other Commitments/Appropriations
Reserve for Notes Receivable include:$1,290,000
for 2811 Alma, and $4,137,254 for 801 Alma,
$7,700,000 for Bueva Vista Mobile Home Park. (13,127,254)
Reserve for Reappropriations (11,669,330)
Reserve for unrealized gain on investments
(315,320) (164,285)
-----------------------------------------------------------------------------------------------------------------------Net Funds Available $316,745 $6,220,209
USE OF FEES:USE OF FEES:
No expenditures have been made from this
fund in Fiscal Year 2020
FUTURE USE OF FEES:
$5.5M planned to be used for the New
Downtown Parking Garage (PE-15007) in FY
2022 as part of the 2021-2025 5-year Capital
Improvement Plan
Expenditures in Fiscal Year 2020 are
$17k for salaries and benefits and $8k for
planning. Reserve for Reappropriaton is
for Affordable Housing Loan Agreement:
3705 El Camino Real (Wilton Court).
Page 2 of 11
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2020
Residential & Non-Residential Residential & Non-Residential
Community Facilities Community Facilities
FUND Parks Community Centers
Purpose and Authority Fees imposed on new residential and Fees imposed on new residential and
for Collection non-residential development approved non-residential development approved
after Jan 28, 2002 for Parks. after Jan 28, 2002 for Community Centers.
PAMC Ch. 16.58 PAMC Ch. 16.58
Amount of the Fee Residential: Single family $12,436 per
residence (or $18,570 per residence
larger than 3,000 sq ft); Multi-family
$8,141 per unit (or $4116 per unit smaller
than or equal to 900 sq ft)
Residential: Single family $3,321 per residence
(or $4,887 per residence larger than 3,000 sq
ft); Multi-family $2,122 per unit (or $1,071 per
unit smaller than or equal to 900 sq ft)
Nonresidential: Commercial/Industrial
$5,281 per 1,000 sq ft or fraction thereof;
Hotel/Motel $2,388 per 1,000 sq ft or
fraction thereof.
Nonresidential: Commercial/industrial $298 per
1,000 sq ft or fraction thereof; Hotel/Motel $134
per 1,000 sq ft or fraction thereof.
Fund Balance July 1, 2020 $5,611,245 $4,283,300
Activity in 2019-20
Revenues
Fees Collected 402,902 134,638
Operating Transfer from Capital Projects Fund 85,000
Interest Earnings 81,899 59,074
Unrealized Gain/Loss 91,745 72,642
-----------------------------------------------------------------------------------------------------------------------
Total Revenues $661,547 $266,354
Operating Transfer to Capital Projects Fund (2,720,000)(1,671,860)
-----------------------------------------------------------------------------------------------------------------------
Total Expenditures (2,720,000)(1,671,860)
-----------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2020 $3,552,791 $2,877,794
Reserve for unrealized gain on investments (119,679)(94,044)-----------------------------------------------------------------------------------------------------------------------
Net Funds Available $3,433,112 $2,783,750
Page 3 of 11
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2020
Residential & Non-Residential Residential & Non-Residential
Community Facilities Community Facilities
FUND Parks Community Centers
USE OF FEES:USE OF FEES:
Budget transfer of $2.7M was made in FY
2020 to Capital Project Fund for Birch
Street acquisition (PE-19003). The $85K
operating transfer from Capital Project
Fund was due to cancellation of Baylands
Athletic Center project (PG-19001)
Budget transfer of $1.7M was made in FY 2020
to Capital Improvement Fund for JMZ
Renovation (AC-18001)
FUTURE USE OF FEES:FUTURE USE OF FEES:
Budget transfers planned in FY 2021 to
Capital Improvement Fund in the amount
of $150k for dog park installation (PG-
18001), $350k for park restroom
installation (PG-19000)
A total of $1.4M is planned in FY2022-
2025 of the 5-year CIP for Birch Street
Improvements (PE-19003) ($400K), Park
Restroom Installation (PG-19000) ($700K)
and Dog Park Installation and Renovation
(PG-18001) ($300K).
Budget transfers planned in FY 2021 to Capital
Improvement Fund in the amount of $126k for
JMZ Renovation (AC-18001), $2.4M for
Rinconada Park Improvements (PE-08001)
Page 4 of 11
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2020
Residential & Non-Residential Residential Housing
Community Facilities In-Lieu Fund
FUND Libraries
Purpose and Authority
for Collection
Fees imposed on new residential and non-
residentual development approved after
January 28, 2002 for Libraries.
Fees collected from ownership residential
developments of three or more units (including
mixed used with ownership in housing) in-lieu
of providing the required below-market rate
units(s) to low and moderate income
households.
PAMC Ch. 16.58 PAMC Chapter 16.65
Amount of the Fee Residential: Single family $1,126 per
residence (or $1,676 per residence larger
than 3,000 sq ft); Multi-family $674 per
unit (or $370 per unit smaller than or
equal to 900 sq ft)
Single family $78.27 per sq. ft. Single family
detached; $52.18 per sq. ft. single family
attached. Multi Family $52.18 per sq. ft.
condos.
Nonresidential: Commercial/industrial
$284 per 1,000 sq ft or fraction thereof;
Hotel/Motel $119 per 1,000 sq ft or
fraction thereof.
Fund Balance July 1, 2020 $1,150,846 $24,717,614
Activity in 2019-20
Revenues
Fees Collected 46,033 35,027
Webster Wood Property Rental 2,775
Interest Earnings 26,171 219,304
Unrealized Gain/Loss Investments 25,465 198,114
-----------------------------------------------------------------------------------------------------------------------
Total Revenues $97,668 $455,220
Expenditures
Salaries and Benefits (15,704)
Contract Services (174,708)
Liability Insurance (567)
Transfer to General Benefits Fund (477)
-----------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 (191,456)
-----------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2020 $1,248,514 $24,981,378
Other Commitments/Appropriations
Reserve for Reappropriations (8,474,633)
Reserve for Encumbrances (54,860)
Reserve for unrealized gain on investments (31,531)(244,501)
Reserve for Notes Receivable include $375,000
for 3053 Emerson, $3,504,850 for Tree House
Apts, $747,734 for Sheridan Apts., $2,285,026 for
801 Alma, $901,201 for Palo Alto Housing
Project, $600,000 for 2811-2825 Alma St.,
$203,561 for Colorado Park Housing, $149,968
for El Dorado Palace, and $6,800,000 for Buena
Vista Mobile Home Park.(15,567,340)
-----------------------------------------------------------------------------------------------------------------------Net Funds Available $1,216,983 $640,044
Page 5 of 11
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2020
Residential & Non-Residential Residential Housing
Community Facilities In-Lieu Fund
FUND Libraries
USE OF FEES:USE OF FEES:
No expenditures have been made from
this fund in FY2020
FUTURE USE OF FEES:
Budget transfers planned in FY 2021 to
Capital Improvement Fund in the amount
of $260k for Library Automated Material
Handling (LB-21000)
$370K planned in FY2022-2025 of the 5-
year CIP for LB-21000
Expenditures in Fiscal Year 2020 were $16k for
salaries and benefit, $175k for Palo Alto
Housing Corp for BMR admin fees and for
consultancy fees. Fiscal Year 2020 Reserve
for Reappropriaton is for Affordable Housing
Loan Agreement: 3705 El Camino Real (Wilton
Court) and for Alta Housing (formerly Palo Alto
Housing Corporation -PAHC) Affordable
Housing Loan amounting to $8.3M and $200K,
respectively.
Page 6 of 11
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2020
Charleston-Arastradero Corridor Citywide Transportation
Pedestrian and Bicyclist Safety
FUND
Purpose and Authority Fees collected from new development and Transportation impact fees imposed
for Collection re-development within the Charleston-on new development in all parts of the
Arastradero Corridor to provide for pedest- City to fund congestion reduction
rian and bicyclist safety improvements.projects.
PAMC Ch. 16.60 PAMC Ch. 16.59
Amount of the Fee Residential: $1,362 per residential unit;
Commercial: $0.40 per sq ft
$7886 per net new PM peak hour trip
Fund Balance July 1, 2020 $18,670 $2,361,542
Activity in 2019-20
Revenues
Fees Collected 0 180,103
Interest Earnings 411 50,946
Unrealized Gain/Loss 426 49,156
-----------------------------------------------------------------------------------------------------------------------
Total Revenues $838 $280,205
Operating Transfer to Capital Projects Fund 0 (383,362)
-----------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 (383,362)
-----------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2020 $19,507 $2,258,385
Other Commitments/Reappropriations
Reserve for unrealized gain on investments (502)(60,714)
-----------------------------------------------------------------------------------------------------------------------Net Funds Available $19,005 $2,197,671
USE OF FEES:USE OF FEES:
Budget transfer of $383k made to Capital
Project Fund in FY 2020 for Traffic Signal and
Intelligent Transportation (PL-05030)
FUTURE USE OF FEES:
Budget transfers in FY 2021 to Capital
Improvement Fund in the amount of $400k for
Traffic Signal and Intelligent Transportation (PL-
05030)
$1.58M planned in FY2022-2025 of the 5-year
CIP for PL-05030
No expenditure of funds have been made
from this Fund in Fiscal Year 2020
Page 7 of 11
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2020
New Public Safety Facilities General Government Facilities
FUND
Purpose and Authority Fees imposed on residential and Fees imposed on residential and non-
for Collection non-residential development to fund residential development to fund facilities
police and fire facilities (including fire associated with municipal administration.
apparatus and vehicles)PAMH Ch. 16.58
PAMC Ch. 16.58
Amount of the Fee Residential: Single family $1,081 per unit;
Multi-family $865 per unit
Residential: Single family $1,362 per unit;
Multi-family $1,089 per unit
Nonresidential: Commercial $604 per
1,000 sq ft. or fraction thereof; Industrial
$200 per 1,000 sq. ft. or fraction thereof;
Office/Institutional $806 per 1,000 sq ft or
fraction thereof.
Nonresidential: Commercial $760 per 1,000 sq
ft. or fraction thereof; Industrial $251 per 1,000
sq. ft. or fraction thereof; Hotel/Motel $1,016
per 1,000 sq ft or fraction thereof.
Fund Balance July 1, 2020 $346,826 $436,785
Activity in 2019-20
Revenues
Fees Collected 90,589 114,039
Interest Earnings 9,312 11,727
Unrealized Gain/(Loss)9,185 11,567
-----------------------------------------------------------------------------------------------------------------------
Total Revenues $109,086 $137,333
-----------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 0
-----------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2020 $455,912 $574,118
Other Commitments/Reappropriations
Reserve for unrealized gain on investments (10,561)(13,300)
-----------------------------------------------------------------------------------------------------------------------Net Funds Available $445,351 $560,818
USE OF FEES:USE OF FEES:
No expenditure of funds have been made
from this Fund in Fiscal Year 2020.
No expenditure of funds have been made from
this Fund in Fiscal Year 2020.
FUTURE USE OF FEES:
Budget transfers planned in FY 2021 to
Capital Improvement Fund in the amount
of $450k for New Public Safety Building
(PE-15001)
Page 8 of 11
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2020
Residential Housing
Impact Fee Fund
FUND
Purpose and Authority
for Collection
Fees imposed on all rental residential
developments (including mixed use with
rental housing) to offset the demand that
the new market-rate rental housing
creates for low income and moderate-
income housing in the City.
PAMC Ch. 16.65
Amount of the Fee Single and Multi-Family: $20.87 per sq. ft.
apartment (rentals)
Fund Balance July 1, 2020 $0
Activity in 2019-20Revenues
Fees Collected 600,040
Interest Earnings 11,589
Unrealized Gain/(Loss)8,174 --------------------------------------------------------
Total Revenues $619,803
Expenditures --------------------------------------------------------Total Expenditures 0 --------------------------------------------------------
Ending Balance June 30, 2020 $619,803
Other Commitments/Reappropriations
Reserve for Reappropriations (600,000)
Reserve for unrealized gain on investments (8,174)
--------------------------------------------------------Net Funds Available $11,629
USE OF FEES:
No expenditure of funds have been made
from this Fund in Fiscal Year 2020.
Reseve for Reappropriationsis for
Affordable Housing Loan Agreement:
3705 El Camino Real (Wilton Court)
Page 9 of 11
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2020
(INFORMATION ONLY)
Public Art Fund Parkland Dedication
FUND
Purpose and Authority for collection
Fees imposed on new commercial
develoments (including mixed use
projects), including new construction,
remodels, additions and reconstruction
that (i) have a floor area of 10,000 sq. ft.
or more, and (ii) have a construction value
of $200,000, or more, exclusive of costs
for architecture, design, engineering, and
required studies; and all new residential
projects of five or more units to fund
public art for private developments.
Fees on parkland dedication imposed on new
residential and non-residential development.
Govt Code Sec. 66477 (Quimby Act)
PAMC Ch. 16.61
Amount of the Fee 1% of first $114.13 million construction
valuation and 0.9% of construction
valuation for valuation in excess of
$114.13 million
Single Family: $63,107.94 per unit; Multi-
Family: $43,498.13 per unit. This applies only
to residential projects that require a subdivision
or pacel map. Land dedication is required for
subdivisions resulting in more than 50 parcels.
Parkland Dedication Fee -Land: Single Family:
531 sq. ft, per unit; Multi-Family: 366 sq. ft. per
unit. When parkland dedication applies, park
impact fees do not apply.
Fund Balance July 1, 2020 $1,323,439 $3,981,565
Activity in 2019-20
Revenues
Fees Collected 386,100 733,325
Interest Earnings 36,133 102,020
Unrealized Gain/Loss Investments 34,837 97,180
Operating Transfer from General Fund 169,998 100,000
-----------------------------------------------------------------------------------------------------------------------
Total Revenues $627,068 $1,032,525
Expenditures
Salaries and benefits (210,233)
Liability Insurance (2,896)
Transfer to General Benefit Fund (4,818)
-----------------------------------------------------------------------------------------------------------------------
Total Expenditures (217,947)0
-----------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2020 $1,732,560 $5,014,090
Other Commitments/Reappropriations
Reserve for unrealized gain on investments (40,274)(118,245)
-----------------------------------------------------------------------------------------------------------------------Net Funds Available $1,692,286 $4,895,845
This fund is not subject to AB1600
requirements and is listed only for
information purposes.
This fund is not subject to AB1600
requirements and is listed only for
information purposes.
Page 10 of 11
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2020
(INFORMATION ONLY)
FUND Water and Wastewater Collection
Purpose and Authority Capacity fees charged to developers that
for Collection are adding load to the water and sewer
systems effective July 1, 2005.
California Government Code Sect 66000
Amount of the Fee Water Capacity Fees: 5/8 in., 3/4 in E-
Meter. $3,750, 1 in. E-Meter $6,250, 1 1/2
in. E-Meter $18,850, 2 in. E-Meter
$31,250, 4 in. Compound Meter by est.
$125/FU (min. 5,000 FU) , 6 in.
Compound Meter by est. $125/FU (min.
7,000 FU)
Fire Service Capacity Fees: 2 in. $750, 4
in. $8,425, 6 in. $18,250, 8 in. $30,950,
10in. $48,110
Sewer Capacity Charges: 4 in. connection
with 5/8 in Water Meter (WM) $5,250, 4 in
connection. with 1-in WM $10,500, 4 or 6
in. connection with 1-1/2 in WM $31,668,
6 in. connection with 2 in. WM $52,500, 6
in. and larger connection with 4 in. or
larger WM by est. at $210/FU
Activity in 2019-20
Capacity Fees Collected
Water $466,665
Wastewater Collection 500,610
Total
USE OF FEES:
The fees are used exclusively for water
and sewer system improvements
Page 11 of 11