HomeMy WebLinkAboutStaff Report 110-06TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
3
DATE:JANUARY 17, 2006
SUBJECT:ACCEPTANCE OF
FEES
CMR: 110:06
ANNUAL STATUS 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, 2005 (Exhibit A).
BACKGROUND
State law (Govermnent Code Section 66006) requires each local agency that imposes
deve!opment impact fees to prepare an aimual report providing specific information about those
fees. This requirement is part of the law commonly referred to as AB 1600 and known as the
Mitigation Fee Act (the Act). It codifies the legal requirement that fees on new development
have the proper nexus to any project on which they are imposed. In addition, the Act 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 Act (Section 66006) requires 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:
A brief description of the type of fee in the fund.
The amount of the fee.
The begixming and ending balance for the fiscal year.
o The amount of fees collected and interest earned.
CMR:110:06 Page 1 of 4
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.
An identification of an approximate date by which the construction of a public
improvement will conmaence, 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
report is attached as Exhibit A.
Section 66001(d) 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 findihg
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 has collected sufficient funds to complete financing on an ii~complete improvement
and doesn’t identify an approximate construction date within certain time periods or, 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 the Act, 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 Rea! 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.
San Antonio/West Bayshore Area traffic impact fees (PAMC Ch. 16.46).
CMR:110:06 Page 2 of 4
Fee for new nonresidential development in the San Antonio/West Bayshore area to fund
capacity improvements at four intersections.
Housing impact fees Imposed on Commercial Developments (PAMC Ch. 16.47).
Fee on large-commercial and industrial development to contribute to programs that
increase the City’s low income and moderate-income housing stock.
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.
Developer Impact Fees (PAMC Ch. 16.58).
Fee on new residential and non-residential t~ousing developments to provide community
facility funds for parks, community centers and libraries.
Additional fees include residential housing in-lieu fees paid to the City, at the developer’s
election, by residential developers in fulfillment of obligations m~der the City’s inclusionary
zoning (Below-Market Rate Housing) program. While these fees do not necessarily fit within the
definition of development fees subject to AB 1600 reporting requirements, staff has included
them in this report for informational purposes.
Staff has determined that the five-year findings required by Section 66001 (d) are not required
for any fee this year. Such findings were made for the Sm~ Antonio West Bayshore area traffic
impact fees and the Stanford Research Par~E1 Camino Real traffic fees in 2003.
On September 26, 2005, Council adopted the Charleston-Arastradeto 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, and the developers impact fees, the funds on hand as of
June 30, 2005 have all been received within the past three years. Therefore, no findings are
required for these fees.
RESOURCE IMPACT
There is no fiscal impact associated with this year’s report.
POLICY IMPLICATIONS
This report does not represent any change to existing City policies.
CMR:110:06 Page 3 of 4
ENVIRONMENTAL ASSESSMENT
Presentation of this ammal report is not a project under the California Environmental Quality
Act; accordingly, no environmental assessment is required.
PREPARED BY:
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
ALLEN LEE
Senior Accountant
Director. Admirtgstrative Services
EMIE. ¥ ~A~SO~
Assistant City Manager
ATTACHMENT
Exhibit A: Annual Report on Development Fees for Period Ending June 30, 2005
cc: Home Builders Association
CMR: 110:06 Page 4 of 4
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2005
Purpose and Authority
for Collection
Amount of the Fee
Fund Balance July 1, 2004
Activity in 2004-05
Revenues
Fees Collected
Interest Earnings
Unrealized Gain/Loss Investments
Total Revenues
Expenditures
Other
Page Mill/Hanover Improvements
(PL-99023)
Total Expenditures
Ending Balance June 30, 2005
Net Funds Available
Traffic impact fees imposed on new
nonresidential development in the
Stanford Research Park!El Camino
Real CS zone to fund improvements
at eight identified intersections,
PAMCCh I6,45
$8.68 per square foot
$1,857,152
0
76,474
(11,939)
$64,535
0
(600,000)
(600,0OO)
$1,321,687
$1,321,687
USE OF FEES:
No expenditure of funds have been made
from this fund in FY 2004-05. Budgeted
transfers in the amount of $600,000 in FY
2004-05 were made from this fund to be
used for Page Mill/Hanover intersection
improvements
Traffic impact fees imposed on new
nonresidential development in the
San AntonioNVest Bayshore Areas
to fund capacity improvements at
four identified intersections.
PAMC Ch, !646
$1.79 per square foot
$555,89~
23,5I
(3,47:
$20,037
$575,932
$575,932
USE OF FEES:
No expenditures have been made from this
fund in FY 2004-05. Fees are planned to be
used for specific traffic improvements in the
CharlestontSan Antonio Road area, but have
been delayed by a related project to be
constructed by the State Department of
Transportation.
Page 1 of 4
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2005
Purpose and Authority
for Collection
Amount of the Fee
518104-517105
as of 518/05
Fund Balance July 1, 2004
Activity in 2004-05
Revenues
Fees Collected
Interest Earnings
Unrealized Gain!Loss Investments
Total Revenues
Expenditures
Transfer to Capital Improvement
Project
Other
Total Expenditures
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
$15.58 per square foot
$15.70 per square foot
$5,854,414
646,570
65,088
(14,456)
697,202
0
0
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
$53,731 per space
$76,035
3,217
(497’,
2,720
Ending Balance June 30, 2005
Other Commitments/Appropriations
Reserve for Notes Receivable:
Net Funds Available
$6,551,616
(4,581,976)
$1,969,640
$78,755
$78,755
USE OF FEES:
No expenditure of funds have been made
from this Fund in FY 2004-05.
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.
USE OF FEES:
No expenditure of funds have been made
from this fund in FY 2004~05
Page 2 of 4
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2005
~urpose and Authority
for Collection
Amount of the Fee
Fund Balance July 1, 2004
Activity in 2004-05
Revenues
Fees Collected
Interest Earnings
Unrealized GainiLoss
Total Revenues
Operating Transfer to Capital Projects
Fund
Heritage Park/PG-02018)
Total Expenditures
Ending Balance June 30, 2005
Other Commitments/Appropriations
Reserve for Notes Receivable:
Net Funds Available
Fees imposed on new residential and
non-residential development approved
after Jan 28,2002 for Parks.
PAMC Ch, 16.58
Residential: Single family
$8,337/residence (or $12,448/residence
larger than 3,000 sq ft); Multifamity
$5,457!unit (or $2,759/unit @mailer than or
equal to 900 sq ft)
Nonresidential: Uommerc~al/in0 ustrlal
$3541 sq ft; HotellMotel $!.601sq ft
$529,112
388,734
29,314
(2,197)
$415,851
(37,000)
(37,000)
$907,963
$907,963
Fees imposed on new residential and
non-residential development approved
after Jan 2&2002 for Community Centers.
PAMC Ch. 16.58
Residential: Single family $2.162!residence
(or $3,235/residence larger than 3,000 sq ft);
Multifamily $1,422tunit (or $717/unit smalte:r
than or equal to 900 sq ft)
Nonres~aenual: Uommerc~al/~ndustnat ~U.ZU/
sq ft: HoteL/Motel $0.09/sq ft
$109,116
61,487
5,896
(489)
$66,894
0
$176,010
$176,010
USE OF FEES:
Budgeted transfers in the amount of
$37,000 for FY 2004-05 was made from
this fund to the Capital Improvement Fund
for Heritage Park.
USE OF FEES:
No expenditure of funds have been made
from this Fund in FY 2004-05
Page 3 of 4
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2005
(INFORMATION ONLY)
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 $754/residence
(or $1,121tresidence larger than 3,000 sq
fl); Multifamily $493/unit (or $247/unit
smaller than or equal to 90d Sq ft)
Nonresidential: Commercial/industrial
$0.19/sq ft: HotellMotel $0.08/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, 2004
Activity in 2004-05
Revenues
Fees Collected
Webster Wood In-Lieu Payment
Interest Earnings
Unrealized Gain/Loss Investments
Total Revenues
Expenditures
Housing Program Expense
Total Expenditures
Ending Balance June 30, 2005
Other Commitments!Appropriations
Reserve for Notes Receivable:
Net Funds Available
$42,870
27,828
2.380
(244)
$29,964
$72,834
$72,834
USE OF FEES:
$4,601,18~
9,900
5,850
69,541
(12,726
$72,565
(297,35I
(564,25I
$4,109,500
(3,427,333
$682,167
USE OF FEES:
No expenditure of funds have been made
from this Fund in FY 2004-05
Reserve for Notes Receivable include
$375,000 for 3053 Emerson, $1,204,064 for
Oak Manor, $750,000 for Opportunity
Center, $756,819 for Sheridan Apts. and
$341,450 for Palo Alto Gardens.
Page 4 of 4