HomeMy WebLinkAboutStaff Report 100-07TO:
FROM:
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL ~
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
JANUARY 16, 2007 CMR: 100:07
ACCEPTANCE OF ANNUAL STATUS
FEES
REPORT ON DEVELOPERS’
RECOMMENDATION
Staff recommends that the City Council review and accept the Annual Report on Developers’
Fees for the period ending June 30, 2006 (Exhibit A).
BACKGROUND
State law (Government Code Section 66006) requires each local agency that impos~s
development impact fees to prepare an annual report providing specific information about those
fees. This requirement is part of the law commonly referred to as AB 1600. It codifies the legal
requirement that fees on new development have the proper nexus to any project on which they
are imposed. In addition, AB 1600 imposes certain accounting and reporting requirements with
respect to the fees collected. The fees, for accounting purposes, must be segregated from the
general funds of the City and from other funds or accounts containing fees collected for other
improvements. Interest on each development fee fund or account must be credited to that fund
or account and used only for the purposes for which the fees were collected.
The law was amended effective January 1, 1997. The provisions now require that, within 180
days after the close of the fiscal year, the agency that collected the fees must make available to
the public the following information regarding each fund or account:
o A brief description of the type of fee in the fund.
o The amount of the fee.
o The beginning and ending balance for the fiscal year.
o The amount of fees collected and interest earned.
0 An identification of each public improvement on which fees were expended and
the amount of the expenditure on each improvement, including the total
percentage of the cost of the public improvement that was funded with fees.
CMR:100:07 Page 1 of 4
An identification of an approximate date by which the construction of a public
improvement will commence, if the local agency determines that sufficient funds
have been collected to complete financing on an incomplete public improvement.
A description of each interfund transfer or loan made from the account or fund,
including the public improvement on which the loaned funds will be expended,
and in the case of an interfund loan, the date on which the loan will be repaid and
the rate of interest that the account or fund will receive on the loan.
The amount of any refunds made due to inability to expend fees within the
required time frame.
This report must also be reviewed by the City Council at a regularly scheduled public meeting
not less than 15 days after the information is made available to the public. In addition, notice of
the time and place of the meeting shall be mailed at least 15 days prior to the meeting to any
interested party who files a written request with the local agency for such a mailed notice.
The law also provides that, for the fifth fiscal year following the first deposit into the fund and
every five years thereafter, the local agency shall make findings with respect to any portion of
the fee remaining unexpended, whether committed or uncommitted. The finding must: identify
the purpose to which the fee is to be put; demonstrate a nexus between the fee and the purpose
for which it was originally charged; and identify all sources and amounts of funding anticipated
to complete financing of incomplete improvements along with the approximate dates on which
the anticipated funding is expected to be deposited into the fund.
If the agency no longer needs the funds for the purposes collected, or if the agency fails to make
required findings, or perform certain administrative tasks prescribed by AB 1600, the agency
may be required to refund, on a prorated basis to owners of the properties upon which the fees
for the improvement were imposed, the monies collected for that project and any interest earned
on those funds.
DISCUSSION
The City of Palo Alto development fees covered by AB 1600, and documented in Exhibit A,
include the following:
Stanford Research Park/El Camino Real traffic impact fees (PAMC Ch. 16.45).
Fee for new nonresidential development in the Stanford Research Park/El Camino Real
Service Commercial zone, to fund capacity improvements at eight intersections.
o San Antonio/West Bayshore Area traffic impact fees (PAMC Ch. 16.46).
Fee for new nonresidential development in the San Antonio/West Bayshore area to fund
capacity improvements at four intersections.
CMR: 100:07 Page 2 of 4
o Housing impact fees Imposed on Commercial Developments (PAMC Ch. 16.47).
Fee on commercial and industrial development to contribute to programs that increase the
City’s low income and moderate-income housing stock.
o Parking in-lieu fees for University Avenue Parking District (PAMC Ch. 16.57).
Fee on new nonresidential development in the University Avenue Parking Assessment
District in lieu of providing required parking spaces.
o Developer impact fees (PAMC Ch. 16.58).
Fee on new residential and non-residential housing developments to provide community
facility funds for parks, community centers and libraries.
o Residential housing in-lieu fees (PAMC Ch. 16.47)
Fee on residential developments in-lieu of providing required below-market rate units to
low and moderate income households.
Water and sewer capacity fees (California Government Code Section 66000)
Fee on developments adding load to water and sewer systems.
Staff examined the accounts to determine if any development fees remain unexpended five years
or more after receipt and are subject to refund. The San Antonio/West Bayshore Fund and
Stanford Research Park/El Camino Real Fund contain development impact fees collected on or
before June 30, 1999 that remain unexpended. In fiscal year 2002-03 (CMR:113:04), the City
Council made the required findings that there was a continued need for the San Antonio/West
Bayshore funds for the San Antonio On-Ramp Project. Council also found a continued need for
the Stanford Research Park/E1 Camino funds for the major intersection improvements at the Page
Mill/Hanover intersection, which is scheduled for completion in 2010.
On September 26, 2005, Cotmcil adopted the Charleston-Arastradero Corridor Streetscape
Development Impact Fee to fund pedestrian and bicyclist safety improvements within the
Charleston-Arastradero Corridor, including new pedestrian crosswalks, reduced pedestrian
crossing distances at existing crosswalks, increased visibility of crosswalks and bicycle lanes,
and provision of continuous bicycle lanes.
In the case of the housing impact fees from commercial development, the parking in-lieu fees for
the University Avenue Parking District, developers impact fees, and the capacity fees, the funds
on hand as of June 30, 2006 have all been received within the past four years. Therefore, no
findings are required for these fees.
RESOURCE IMPACT
Council approved the required findings with respect to unexpended fees in 2002-03. As a result,
there is no fiscal impact associated with this year’s report.
CMR:100:07 Page 3 of 4
POLICY IMPLICATIONS
This report does not represent any change to existing City policies.
ENVIRONMENTAL ASSESSMENT
Presentation of this annual report is not a project under the California Environmental Quality
Act; accordingly, no environmental assessment is required.
PREPARED BY:
ALLEN LEE
Senior Accountant
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
CARL
Director,istrative Services
EMILY HARRISON
Assistant City Manager
ATTACHMENT
Exhibit A: Annual Report on Development Fees for Period Ending
June 30, 2006
cc: Home Builders Association
CMR: 100:07 Page 4 of 4
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2006
Purpose and Authority
for Collection
Amount of the Fee
Fund Balance July 1, 2005
Activity in 2005-06
Revenues
Fees Collected
Interest Earnings
Unrealized Gain/Loss Investments
Total Revenues
Expenditures
Other
Charleston/Arastradero Corridor
Improvements
(PL-05002)
Total Expenditures
Ending Balance June 30, 2006
Net Funds Available
Traffic im pact fees imposed on new
nonresidential development in the
Stanford Research Park/El Camino
Real CS zone to fund improvements
at eight identified intersections.
PAMC Ch. 16.45
$9.03 per square foot
$1,321,687
15,748
50,618
(25,714)
$40,652
0
(690,000)
(690,000)
$672,339
$672,339
USE OF FEES:
Budgeted transfers in the amount of
$690,000 in FY 2005-06 were made from
this fund to be used for Gunn High School
entrance near Foothil/Arastradero.
Traffic impact fees imposed on new
nonresidential development in the
San AntonioNVest Bayshore Areas
to fund capacity improvements at
four identified intersections.
PAMC Ch. 16.46
$1.86 per square foot
$575,932
o
24,982
(15,198)
$9,784
0
$585,716
$585,716
USE OF FEES:
No expenditures have been made from this
fund in FY 2005-06. Fees are planned to be
used for specific traffic improvements in the
Charleston/San Antonio Road area, but have
been delayed by a related project to be
constructed by the State Department of
Transportation.
Page 1 of 5
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2006
=urpose and Authority
for Collection
Amount of the Fee
As of May 2006
Fund Balance July 1, 2005
Activity in 2005-06
Revenues
Fees Collected
Interest Earnings
Unrealized Gain/Loss Investments
Total Revenues
Expenditures
Transfer to CDBG Fund
Consultant Fees
Total Expenditures
Ending Balance June 30, 2006
Other Commitments/Appropriations
Reserve for Notes Receivable include’
$2,221,976 for Alma Single Room
Occupancy, $1,960,000 for Oak Court
Apartments, and $400,000 for Barker
Hotel.
Net Funds Available
Fees imposed on large commercial
and industrial development to
contribute to programs that increase
the City’s low income and moderate-
income housing stock.
PAMC Ch.16.47
$16.01 per square foot
$6,551,616
101,630
82,824
(46,537)
137,917
(250,000)
(3,050)
(253,050)
$6,436,483
(4,581,976)
$1,854,507
Fees collected from non-residential
development within the University Ave.
Parking Assessment District in lieu of
providing the required number of
parking spaces.
PAMC Ch 16.57
$55,880 perspace
$78,755
3,414
(1,900)
1,514
$80,269
$80,269
USE OF FEES:
Budgeted transfers in the amount of
$250,000 were made from this fund to the
CDBG Fund. An additional $3,050 was
spent on consultant services.
USE OF FEES:
No expenditure of funds have been made
from this fund in FY 2005-06.
Page 2 of 5
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2006
Purpose and Authority
for Collection
Amount of the Fee
Fund Balance July 1, 2005
Activity in 2005-06
Revenues
Fees Collected
Interest Earnings
Unrealized Gain/Loss
Total Revenues
Operating Transfer to Capital Projects
Fund
Heritage Park (PG-02018)
Total Expenditures
Ending Balance June 30, 2006
Other Commitments/Appropriations
Reserve for Notes Receivable:
Net Funds Available
Fees inn posed on new residential and
non-residential development approved
after Ja n 28, 2002 for Parks
PAMC Ch. 16.58
Residential: Single family
$8,670/residence (or $12,946/residence
larger than 3,000 sq ft); Multifamily
$5,675/unit (or $2,869/unit smaller than or
equal to 900 sq ft)
Nonresidential: Commercial/industrial
$3,682.00 per 1,000 sq ft; Hotel/Motel
$1,664.00 per 1,000 sq ft
$907,963
470,402
33,730
(23,730)
$480,402
(467,OOO)
(467,000)
$921,365
$921,365
Fees imposed on new residential and
non-residential development approved
after Jan 28,2002 for Community Centers.
PAMC Ch 16.58
Residential: Single family $2,248/residence
(or $3,364/residence larger than 3,000 sq ft);
Multifamily $1,479/unit (or $746/unit smaller
than or equal to 900 sq ft)
Nonresidentiali Commercial/industrial
$208.00 per 1,000 sq ft; Hotel/Motel $94.00
per 1,000 sq ft
$176,010
116,58Zl
8,535
(5,693)
$119,426
0
$295,436
$295,436
USE OF FEES:
Budgeted transfers in the amount of
$367,000 was made from this fund to the
Capital Improvement Fund for
Stanford/Palo Alto Playing Fields and
$100,000 for Park Restroom Installation in
FY 05-06.
USE OF FEES:
No expenditure of funds have been made
from this Fund in FY 2005-06
Page 3 of 5
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2006
Purpose and Authority
for Collection
Amount of the Fee
Fees imposed on new residential and
non-residential development approved
after Jan 28,2002 for Libraries.
PAMC Ch. 16.58
Residential: Single family $784/residence
(or $1,166/residence larger than 3,000 sq
ft); Multifamily $513/unit (or $257/unit
smaller than or equal to 900 sq ft)
Nonresidential: Commercial/industrial
$198.00 per 1,000 sq ft; Hotel/Motel
$83.00 per 1,000 sq ft
Fees collected from residential
developments of three or more units in
lieu of providing the required below-
market rate unit(s) to low and moderate
income households.
PA Comprehensive Plan and
PAMC Chapter 18
Varies
Fund Balance July 1, 2005 $72,834 $4,109,500
Activity in 2005-06
Revenues
Fees Collected
Webster Wood In-Lieu payment
Interest Earnings
Unrealized Gain/Loss Investments
Total Revenues
41,414
2,866
(2,846)
$41,434
9,900
5,625
31,481
(15,274)
$31,732
Expenditures
Housing Program Expense
Total Expenditures
Ending Balance June 30, 2006
0
$114,268
(258,668]
(258,668)
$3,882,564
Other Commitments/Appropriations
Reserve for Notes Receivable include
$375,000 for 3053 Emerson, $1,355,184
for Oak Manor, $750,000 for Opportunity
Center, $756,81’9 for Sheridan Apts. and
$341,450 for Palo Alto Gardens.
Net Funds Available $114,268
(3,578,453~
$304,111
USE OF FEES:USE OF FEES:
No expenditure of funds have been made
from this Fund in FY 2005-06
Expenditures in FY 2005-06 include
$130,000 to Palo Alto Housing Corp for BMR
fees, $66,486 to Keyser Marston for BMR
professional fees and $50,000 to Housing
Trust of Santa Clara County.
Page 4 of 5
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2006
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 Domestic: 5/8 in., 3/4 in. $1200, 1
in. $2,250, 1/12 in. $4,500, 2 in. $9,000, 3
in. by est. $30/FU ($66,750 at cap), 4 in.
by est. $30/FU ($176,333 at cap.), 6 in. by
est. $30/FU (339,667 at cap.) Water Fire
service: 4 in. $8,250, 6 in. $19,970, 8 in.
$36.300
Sewer: 4 in. $2,500 first 50 FU, $50/FU
additional, 6 in. by est. $50/FU, 8 in. by
est. $50/FU
FU is fixture unit
Activity in 2005-06
Capacity Fees Collected
Water $271,329
Wastewater Collection 43:250
Total $314,579
USE OF FEES:
The fees are used exclusively for water
and sewer system improvements
Page 5 of 5