HomeMy WebLinkAboutStaff Report 108-10TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE: JANUARY 11, 2010 CMR: 108:10
REPORT TYPE: Consent
SUBJECT: Review and Acceptance of Annual Status Report on Developers' Fees for
Fiscal Year 2009
RECOMMENDATION
Staff recommends that the City Council review and accept the Annual Report on Developers'
Fees for the period ending June 30, 2009 (Exhibit A).
BACKGROUND
State law (Government Code Section 66006) requires each local agency that imposes
development impact fees 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 must 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.
Government Code Section 66006 contains comprehensive annual reporting requirements for
development impact fees. This statute 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:
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 in the fund.
CMR:108:10 Page 1 of 5
o The amount of fees collected and interest earned.
o 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.
o 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.
o 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.
o 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. An
early packet consisting of Exhibit A only was made available to the public and included in the
packet for the December 14, 2009 meeting of the City Council.
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 to 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:
o Stanford Research Park/El Camino Real traffic impact fees (PAMC Ch. 16.45): Fee for
new nonresidential development in the Stanford Research Park/E1 Camino Real Service
Commercial zone, to fund capacity improvements at eight intersections.
CMR:108:10 Page 2 of 5
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.
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 non-residential development in the University Avenue Parking Assessment District
in lieu of providing required parking spaces.
o Parks, Community Centers, and Libraries impact fees (PAMC Ch. 16.58): Fee on new
residential and non-residential development 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.
o Charleston-Arastradero Corridor pedestrian and bicyclist safety fees (PAMC Ch. 16.59):
Fee on new development and re -development within the Charleston-Arastradero Corridor
to provide for pedestrian and bicyclist improvements.
o Parkland dedication fees (Quimby Act) (California Government Code Section 66477):
Fees or parkland dedication imposed on new residential and non-residential development.
o Water and sewer capacity fees {California Government Code Section 66000): Fee on
developments adding load to water and sewer systems.
o Citywide Transportation impact fee {PAMC Ch 16.59): Fee on development in all parts
of the City to fund transportation projects and programs to reduce congestion.
AB 1600 requires the City to make specified findings in the event any funds are not expended
within five fiscal years of collection and every five years thereafter. While there are several
funds containing collected fees that have not been expended in five years, the required statutory
carryover findings have already been made for those funds and no further findings are required.
The San Antonio/West Bayshore Fund, Stanford Research Park/E1 Camino Real Fund,
University Avenue In -Lieu Parking Fund, and Community Center and Library Development
Funds contain development impact fees that remain unexpended. In fiscal year 2008 (CMR
107:09) the City Council made the required findings that there was a continued need for the San
Antonio/West Bayshore funds for a right turn lane at the intersection of westbound Charleston at
San Antonio. In fiscal year 2008, Council also found a continued need for the Stanford Research
Park/E1 Camino Real fund for major intersection improvements at the Page Mill/Hanover
CMR:108:10 Page 3 of 5
intersection and a continued need for the University Avenue In -Lieu Parking funds for the
purpose of construction of public parking spaces.
Finally, in fiscal year 2007 (CMR 106:08) the City Council made the required findings that there
was a continued need for the community center and library development impact fees for the
development of new facilities at the current Mitchell Park community center and library site.
In the case of housing impact fees from commercial development, developers impact fees for
parks, parkland dedication fees, Charleston/Arastradero pedestrian/bike safety fees, and citywide
transportation impact fees, the funds on hand as of June 30, 2009 have all been received within
the past four years. Therefore, no findings are required for those fees.
RESOURCE IMPACT
Council approved the required findings with respect to unexpended fees in fiscal years 2007 and
2008. As a result, there is no fiscal impact associated with this year's report.
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.
CMR:108:10 Page 4 ()FS
PREPARED BY:
ALLEN LEE
Senior Accountant, Administrative Services
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
L
Director, Administrative Services
MES KEE
City Manag
er
y
ATTACHMENT
Exhibit A: Annual Report on Development Fees for Period Ending
June 30, 2009
ce: Home Builders Association
CMR: 108; I 0 Page 5 of 5
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2009
FUND
Stanford Research Park!
El Camino Fund
San AntoniolWest
Bayshore Fund
Purpose and Authority
for Collection
Amount of the Fee
Fund Balance July 1, 2008
Activity In 2008-09
Revenues
Fees Collected
Interest Earnings
Unrealized Gain/Loss Investments
Transfer In from Gas Tax Fund
Transfer In from CIP Fund
Total Revenues
Expenditures
Other
CharlestonfArastradero Corridor
Improvements
(PL -05002)
Total Expenditures
Ending Balance June 30, 2009
Net Funds Available
Traffic impact fees imposed on new
nonresidential development in the
Stanford Research ParklEl Camino
Real CS zone to fund improvements
at eight identified intersections.
PAMC Ch. 16.45
$10.38 per square foot
$823,618
0
45,283
52,518
994,217
596,270
$1,688,288
0
0
0
$2,511,906
$2,511,906
USE OF FEES:
No expenditures have been made from
this fund in FY 2008-09. Fees are planned
to be used for Gunn High School entrance
near Foothil/Arastradero.
Traffic impact fees imposed on new
nonresidential development in the
San AntoniolWest Bayshore Areas
to fund capacity improvements at
four identified intersections.
PAMC Ch. 16.46
$2.14 per square foot
$664,374
13,372
28,964
17,502
$59,838
0
$724,212
$724,212
USE OF FEES:
No expenditures have been made from this
fund in FY 2008-09. 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 8
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2009
FUND
Commercial Housing
In -Lieu Fund
University Avenue
Parking Assessment District
In -Lieu Fund
Purpose and Authority
for Collection
Amount of the Fee
Fund Balance July 1, 2008
Activity in 2008-09
Revenues
Fees Collected
Interest Earnings
Unrealized Gain/Loss Investments
From State of California
Total Revenues
Expenditures
Purchase of 801 Alma property
Consultant Fees
Total Expenditures
Ending Balance June 30, 2009
Other Commitments/Appropriations
Encumbrances
Reserve for unrealized gain on
investments
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
$17.59 per square foot
$2,898,798
396,747
22,991
55,281
1,000,000
1,475,019
(2,700,000)
0
(2,700,000)
$1,673,817
(22,790)
(86,112)
$1,564,915
USE OF FEES:
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
$64,272 per space
$90,696
0
3,930
2,903
6,833
0
0
USE OF FEES:
$97,529
(3,914)
$93,615
$2,700,000 to purchase property at 801 No expenditure of funds have been made
Alma.
from this fund in FY 2008-09.
Page 2 of 8
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2009
FUND
Residential & Non -Residential Housing
Community Facilities
Parks
Residential & Non -Residential Housing
Community Facilities
Community Centers
Purpose and Authority
for Collection
Amount of the Fee
Fund Balance July 1, 2008
Activity in 2008-09
Revenues
Fees Collected
Interest Earnings.
Unrealized Gain/Loss
Transfer In from CIP Fund
Total Revenues
Operating Transfer to Capital Projects
Fund
Total Expenditures
Ending Balance June 30, 2009
Other Commitments/Appropriations
Reserve tor unrealized gain on
investments
Net Funds Available
Fees imposed an new residential and
non-residential development approved
after Jan 28, 2002 for Parks.
PAMC Ch. 16.58
Residential: Single family
$9,354/residence (or $13,968/residence
larger than 3,000 sq ft); Multifamily
$6,123/unit (or $3,092/unit smaller than or
equal to 900 sq ft)
Nonresidential: Commercial/industrial
$3,972.00 per 1,000 sq ft; Hotel/Motel
$1,796.00 per 1,000 sq ft
$2,760,167
217,673
106,320
60,500
35,210
$419,703
(1,090,000)
(1,090,000)
$2,089,860
(91,331)
$1,998,629
USE OF FEES:
Budgeted transfers in the amount of
$220,000 was made from this fund to the
Capital Improvement Fund for Park
Restroom Renovations (PE -06007) and
$870,000 for Cubberley Turf Renovations
(PE -07007) in FY 2008-09.
Fees imposed on new residential and
non-residential development approved
after Jan 28, 2002 for Community Centers.
PAMC Ch. 16.58
Residential: Single family $2,425/residence
(or $3,630/residence larger than 3,000 sq ft);
Multifamily $1,595/unit (or $805/unit smaller
than or equal to 900 sq ft)
Nonresidential: Commercial/industrial
$224.00 per 1,000 sq ft; Hotel/Motel $101.00
per 1,000 sq ft
$1,072,582
84,342
49,877
32,442
$166,661
0
0
$1,239,243
(43,054)
$1,196,189
USE OF FEES:
No expenditure of funds have been made
from this Fund in FY 2008-09.
Page 3 of 8
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2009
(INFORMATION ONLY)
FUND
Residential & Non -Residential Housing
Community Facilities
Libraries
Residential Housing
In -Lieu Fund
Purpose and Authority
for Collection
Amount of the Fee
Fund Balance July 1, 2008
Activity In 2008-09
Revenues
Fees Collected
Webster Wood In -Lieu Payment
Sale of High St property
Interest Earnings
Unrealized Gain/Loss Investments
Total Revenues
Expenditures
Housing Program Expense
Allowance for Uncollectible Notes
Principal Retired
Total Expenditures
Ending Balance June 30, 2009
Other Commitments/Appropriations
Reserve for unrealized gain on
investments
Reserve for Notes Receivable include
$375,000 for 3053 Emerson, $1,300,000
for Tree House Apts, $934,740 for Oak
Manor, $756,819 for Sheridan Apts. and
$150,818 for Palo Alto Gardens.
Net Funds Available
Fees imposed on new residential and
non-residential development approved
after Jan 28, 2002 for Libraries.
PAMC Ch. 16.58
Residential: Single family $846/residence
(or $1,258/residence larger than 3,000 sq
ft); Multifamily $553/unit (or $278/unit
smaller than or equal to 900 sq ft)
Nonresidential: Commercial/industrial
$214.00 per 1,000 sq ft; Hotel/Motel
$90,00 per 1,000 sq ft
$374,520
36,275
17,489
11,613
$65,377
0
0
$439,897
(15,657)
USE OF FEES:
$424,240
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
$5,650,780
9,900
9,625
0
147,028
41,470
$208,023
(1,185,220)
0
(109,816)
(1,295,036)
$4,563,767
(7,293)
(87,416)
(3,517,377)
USE OF FEES:
$951,681
Page 4 of 8
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2009
No expenditure of funds have been made
from this Fund in FY 2008-09,
Expenditures in FY 2008-09 include
$140,000 to Palo Alto Housing Corp for BMR
fees, $109,816 for Oak Manor Apts loan
forgiveness, $300,000 for purchase of 801
Alma, $600,125 for development costs for
very low income senior housing at 3895
Fabian Way, $100,000 to Housing Trust of
SC County for affordable housing and
$41,228 for BMR professional fees.
Page 5 of 8
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2009
FUND
Parkland Dedication
Charleston-Arastradero Corridor
Pedestrian and Bicyclist Safety
Purpose and Authority
for Collection
Amount of the Fee
Fund Balance July 1, 2008
Activity in 2008-09
Revenues
Fees Collected
Interest Earnings
Unrealized Gain/Loss Investments
Total Revenues
Expenditures
Operating Transfer to Capital Projects
Fund
Total Expenditures
Ending Balance June 30, 2009
Other Commitments/Reappropriations
Reserve for unrealized gain on
investments
Net Funds Available
Fees on parkland dedication imposed
on new residential and non-residential
development
Govt Code Sec.66477 (Quimby Act)
Varies
$181,601
98,306
8,514
7,617
$114,437
0
0
$296,038
(9,133)
$286,905
USE OF FEES:
No expenditure of funds have been made
from this Fund in FY 2008-09.
Fees collected from new development and
re -development within the Charleston-
Arastradero Corridor to provide for pedest-
rian and bicyclist safety improvements.
PAMC Ch. 16.60
Residential: $1,045.11 per unit; Commercial:
$0.31 per sq ft
$447,434
68,203
20,066
12,918
$101,187
(81,900)
(81,900)
$466,721
(16,961)
$449,760
USE OF FEES:
Budgeted transfers in the amount of $81,900
were made the the Capita! Improvement
Fund in FY 2008-09 for the Corridor Plan (PL
05002).
Page 6 of 8
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2009
Citywide Transporation
FUND
Purpose and Authority for Collection
Transportation impact fees imposed on
new development in the Stanford
Research Park to fund congestion
reduction projects.
PAMC Ch. 16.59
Amount of the Fee Varies
Fund Balance July 1, 2008 $4,453
Activity in 2008-09
Revenues
Fees Collected 115,279
Interest Earnings 878
Unrealized Gain/Loss Investments 2,609
Total Revenues $118,766
Expenditures
Fund
Operating Transfer to BMR Fund
Principal Retired
0
Total Expenditures 0
Ending Balance June 30, 2009 $123,219
Other Commitments/Reappropriations
Reserve for unrealized gain on
investments (2,609)
Net Funds Available $120,610
USE OF FEES;
No expenditure of funds have been made
from this Fund in FY 2008-09.
Page 7 of 8
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2009
(INFORMATION ONLY)
FUND
Water and Wastewater Collection
Purpose and Authority
for Collection
Amount of the Fee
Capacity fees charged to developers that
are adding load to the water and sewer
systems effective July 1, 2005.
California Government Code Sect 66000
Water Domestic: 5/8 in., 3/4 in. $2,400, 1
in. $4,500, 1 112 in. $9,000, 2 in. $18,000,
3 in. by est. $60/FU ($66,750 at cap), 4 in.
by est. $60/FU ($176,333 at cap.), 6 in. by
est. $60/FU (339,667 at cap.) Water Fire
service: 2 in. $750, 4 in. $9,000, 6 in.
$22.5300. 8 in. $43.080
Sewer: 4 in. $5,000 first 50 FU, $100/FU
additional, 6 in. by est. $100/FU, 8 in. by
est, $100/FU
FU is fixture unit
Activity in 2008-09
Capacity Fees Collected
Water $522,848
Wastewater Collection 115150,
Total $637,998
USE OF FEES:
The fees are used exclusively for water
and sewer system improvements
Page 8 of 8