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Home My WebLink About2021-10-18 Ordinance 5535 1 0160055_20211007_ay16 Ordinance No. 5535 Ordinance of the Council of the City of Palo Alto Amending the Fiscal Year 2022 Municipal Fee Schedule to Update the Housing Impact Fee for Non-Residential Projects. The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and declarations. The City Council finds and declares as follows: A. To ensure that future development projects mitigate their impact on the need for affordable housing in Palo Alto, and to ensure that any adopted housing impact fees for non- residential development do not exceed the actual affordable housing impacts attributable to the development projects to which the fees relate, the City Council received and considered a report from Strategic Economics and Vernazza Wolfe Associates dated Novem ber 2015 and entitled "Commercial Linkage Fee Nexus Study," (the “Nexus Study”) and the findings of the Nexus Study are incorporated into this Ordinance by this reference. B. The Nexus Study used generally accepted and appropriate methodology to determine the maximum amount needed to fully mitigate the burdens created by nonresidential and mixed-use development on the need for affordable housing and establish that there is a reasonable relationship between the need for affordable housing and impacts of development for which a fee is charged, and that there is also a reasonable relationship between the impact fee’s use and the type of development for which the fee is charged . C. In October 2021, the City Council received and considered a study prepared by Strategic Economics dated September 2021 and entitled “Commercial Linkage Fee Update, Financial Feasibility Analysis.” This study analyzed economic returns and the likelihood of non- residential development at various fee levels not exceeding the actual affordable housing impacts identified in the Nexus Study. D. The City Council now desires to update its housing impact fees for certain nonresidential and mixed-use development projects as authorized by Palo Alto Municipal Code Chapter 16.65, which fees do not exceed the justified fees needed to mitigate the actual affordable housing impacts attributable to the development projects to which the fees relate, as determined by the Nexus Study. E. At least ten days prior to the date this ordinance is being heard, data was made available to the public indicating the amount of cost, or estimated cost, required to provide the service for which the fee or service charge is levied and the revenue sources anticipated to provide the service, including general fund revenues, in accordance with Government Code Section 66019. DocuSign Envelope ID: E6910EC9-A7AC-4D1C-AB20-DC5DEE81906A 2 0160055_20211007_ay16 F. At least fourteen days prior to the date this ordinance is being heard, notice was provided to any persons or organizations who had requested notice, in accordance with Government Code Sections 66004 and 66019. G. Notice of the hearing on the proposed fees was published twice in the manner set forth in Government Code Section 6062a as required by Government Code Sections 66004 and 66018. SECTION 2. The Council of the City of Palo Alto amends the Fiscal Year 2022 Municipal Fee Schedule by adopting the Housing Impact Fees for Non-Residential development, as set forth in Exhibit “A” and incorporated here by reference. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Council finds that the adoption of this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline section 15305 because the adjustment of a fee represents only a minor change in land use regulations and section 15061(b)(3) because it can be seen with certainty that the minor adjustments herein will not have a significant effect on the environment. // // // // // // // // // DocuSign Envelope ID: E6910EC9-A7AC-4D1C-AB20-DC5DEE81906A 3 0160055_20211007_ay16 SECTION 5. As an amendment to the City’s budget, this ordinance shall be effective upon adoption pursuant to Palo Alto Municipal Code Section 2.04.330, subdivision (a)(3); however, the updated fees be effective no sooner than 60 days from the date of adoption, pursuant to California Government Code Section 66017. INTRODUCED and PASSED: October 18, 2021 AYES: BURT, DUBOIS, FILSETH, KOU, STONE NOES: CORMACK, TANAKA ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Planning & Development Services DocuSign Envelope ID: E6910EC9-A7AC-4D1C-AB20-DC5DEE81906A 4 0160055_20211007_ay16 EXHIBIT A Fiscal Year 2022 Municipal Fee Schedule Planning and Development Services Fees Impact & In-Lieu Fees Office/R&D Hotel/Retail/Other Housing Impact Fee Non- Residential $68.50 per sq. ft. Office/R&D $23.11 per sq. ft. Hotel, Retail, Other Non-residential DocuSign Envelope ID: E6910EC9-A7AC-4D1C-AB20-DC5DEE81906A Certificate Of Completion Envelope Id: E6910EC9A7AC4D1CAB20DC5DEE81906A Status: Completed Subject: Please DocuSign: ORD 5535 - Ordinance Updating Commercial Housing Linkage Fee.docx Source Envelope: Document Pages: 4 Signatures: 5 Envelope Originator: Certificate Pages: 2 Initials: 0 Danielle Kang AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Danielle.Kang@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 12/1/2021 8:14:50 AM Holder: Danielle Kang Danielle.Kang@cityofpaloalto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Albert Yang Albert.Yang@CityofPaloAlto.org Assistant City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 67.185.80.26 Sent: 12/1/2021 8:17:00 AM Viewed: 12/1/2021 9:23:56 AM Signed: 12/1/2021 9:24:09 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Jonathan Lait Jonathan.Lait@CityofPaloAlto.org Interim Director Planning and Community Environment City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 99.88.42.180 Sent: 12/1/2021 9:24:11 AM Viewed: 12/2/2021 3:22:00 PM Signed: 12/2/2021 3:22:30 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada Ed.Shikada@CityofPaloAlto.org Ed Shikada, City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 12/2/2021 3:22:32 PM Viewed: 12/3/2021 10:24:08 AM Signed: 12/3/2021 10:24:40 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Tom DuBois tomforcouncil@gmail.com Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 12/3/2021 10:24:42 AM Viewed: 12/3/2021 11:31:45 AM Signed: 12/3/2021 11:31:54 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Signer Events Signature Timestamp Lesley Milton Lesley.Milton@CityofPaloAlto.org City Clerk Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 12/3/2021 11:31:56 AM Resent: 12/10/2021 8:23:20 AM Viewed: 12/10/2021 9:45:19 AM Signed: 12/10/2021 9:45:28 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 12/1/2021 8:17:00 AM Certified Delivered Security Checked 12/10/2021 9:45:19 AM Signing Complete Security Checked 12/10/2021 9:45:28 AM Completed Security Checked 12/10/2021 9:45:28 AM Payment Events Status Timestamps