HomeMy WebLinkAbout2003-01-13 City Councilof PaRo Alto
Ma ager*s Rep r
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:JANUARY 13, 2003 CMR:100:03
SUBJECT:ACCEPTANCE OF ANNUAL STATUS REPORT ON DEVELOPERS’
FEES
RECOMMENDATION
Staff recommends that the City Council accept the Annual Report on Developers’ Fees
for the period ending June 30, 2002 (Exhibit A).
BACKGROUND
State law (Government Code Section 66006) requires each local agency that imposes
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.
The amount of fees collected and interest earned.
CMR:100:03 Page 1 of 4
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.
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.
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:
o Stanford Research Park/El Camino Real traffic impact fees (PAMC Ch. 16.45).
CMR: !00:03 Page 2 of 4
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.
o 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.
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.
Additional fees include residential housing in-lieu fees paid to the City, at the developer’s
election, by residential developers in fulfillment of obligations under the City’s
inclusionary zoning (Below-Market Rate Housing) program. Community facilities fees
for parks, community centers and libraries apply to new residential developments after
January 28, 2002. 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 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/E1 Camino Real Fund contain development
impact fees collected on or before June 30, 1993 that remain unexpended. In fiscal year
1997-98 (CMR:482:97) the City Council made the required findings that there was a
continued need for the San Antonio/West Bayshore Fund for the San Antonio On-Ramp
Project. Council also found that there was a continued need for the Stanford Research
Park!El Camino Real Fund for the major intersection improvements in the Stanford
Research Park area, which are scheduled for completion in 2010. The Council does not
need to make the findings again this year. In the case of the housing impact fees from
commercial development and the parking in-lieu fees for the University Avenue Parking
District, the funds on hand as of June 30, 2002 have all been received within the past
year. Therefore, no findings are required for these fees.
CMR: 100:03 Page 3 of 4
RESOURCE IMPACT
Council approved the required findings with respect to unexpended fees in 1997-98.
result, there is no fiscal impact associated with this year’s report.
As a
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.
ATTACHMENT
Exhibit A:Annual Report on Development Fees for Period Ending
June 30, 2002
PREPARED BY:
Senior Accountant
DEPARTMENT HEAD APPROVAL:
Director, Ad~nistrativl Services-
CITY MANAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
cc: Home Builders Association
CMR: 100:03 Page 4 of 4
FUND
Purpose and Authority
for Gollection
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2002
Stanford Research Park/
El Camino Fund
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.
PAMC Ch. 16.45
San Antonio/West
Bayshore Fund
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
Amount of the Fee $8.20 per square foot $1.64 per square foot
Fund Balance July 1, 2001
Activity in 2001-02
Revenues
Fees Collected
Interest Earnings
Unrealized Gain/Loss Investments
Total Revenues
Expenditures
Operating Transfer to General Fund
Total Expenditures
$1,539,937
92,197
87,242
33,349
212,788
(50,000)
(5O,OOO)
$1,702,725
$479,146
27,120
10,643
37,763
o
$516,909Ending Balance June 30, 2002
Net Funds Available $1,702,725 $516,909
USE OF FEES:
No expenditures have been made
from this fund during FY 2001-02.
Budgeted transfers in the amount of
$340,000 in FY1998-99,$609,000 in
FY1999-00 and $50,000 in FY 2001-
02 were made from this fund to be
used for major intersection
improvements. The total project
cost is $1,624,000, of which
$999,000 in impact fees are
budgeted to be used. This
represents 61.5% of the project total
cost.
USE OF FEES:
No expenditures have been made
from this fund. 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.
FUND
Purpose and Authority
for Collection
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2002
Commercial Housing
In-Lieu Fund
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
University Avenue
Parking Assessment District
In-Lieu Fund
Fees collected from non-residential
development within the University Ave
Parking Assesment District in lieu of
providing the required number of
parking spaces.
PAMC Ch 16.57
Amount of the Fee
4/30/01-5/29/02
as of 5/30/02
Fund Balance July 1, 2001
Activity in 2001-02
Revenues
Fees Collected
Interest Earnings
Unrealized Gain/Loss Investments
Total Revenues
Expenditures
Transfer to Capital Improvement Project
Principal Retired
Total Expenditures
$4.21 per square foot
$15.00 per square foot
S3,517,456
1,543,229
117,906
36,187
1.697,322
0
0
$32,898 perspace
5223,855
65,796
7,519
2,129
75,444
(226,000)
(226,000)
Ending Balance June 30, 2002 $5,214,778 $73,299
Other Commitments/Appropriations
Reserve for Notes Receivable:(4,581,976)
Net Funds Available $632,802 $73,299
USE OF FEES:
No expenditure of funds have been
made from this Fund in FY2001-02
USE OF FEES:
Budgeted transfers in the amounts of
$798,000 for FY1997-98, $766,295
for FY 2000-01 and $226,000 for FY
2001-02 were made from this fund to
the Capital Improvement Project
fund, to be used for CtP 19530,
Downtown Parking Stucuture
feasibility project. This project is
estimated to cost $42 million. Funds
on hand represent 4% of the total
cost. The bulk of the project funding
wili come from a voter approved
assessment district.
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2002
FUND
Purpose and Authority
for Collection
(INFORMATION ONLY)
Residential Housing
In-Lieu Fund
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
Residential Housing
Community Facilities
Parks
Fees imposed on new residential and
non-residential development approve
after Jan 28,2002.
PAMC Ch. 16.58
Amount of the Fee Varies Varies
Fund Balance July 1, 2001
Activity in 2001 °02
Revenues
Fees Collected
Webster Wood In-Lieu Payment
Interest Earnings
Unrealized Gain/Loss Investments
Total Revenues
Expenditures
Housing Program Expense
Principal Retired
Total Expenditures
$4,135,440
225,597
9,525
84,972
37,607
357,700
(160,756)
(160,756)
S0
13,170
0
0
0
13,i70
0
0
Ending Balance June 30, 2002 $4,332,384 $13,170
Other Commitments/Appropriations
Reserve for Notes Receivable:(2,677,333)
Net Funds Available $1,655,052 $t3,170
USE OF FEES:
Reserve for Notes Receivable
include $375,000 for 3053
Emerson, $1,204,064 for Oak
Manor, $756,819 for Sheridan
Apts. and $341,450 for Palo Alto
Gardens.
USE OF FEES:
No expenditure of funds have been
made from this Fund in FY 2001-02
FUND
Purpose and Authority
for Collection
Exhibit A
City of Palo Alto
Annual Report on Developers’ Fees
for Period Ending June 30, 2002
Residential Housing
Community Facilities
Community Centers
Fees imposed on new residential and
non-residential development approved
after Jan 28,2002.
PAMC Ch. 16.58
Residential Housing
Community Facilities
Libraries
Fees imposed on new residential and
non-residential development approved
after Jan 28,2002.
PAMC Ch. 16.58
Amount of the Fee Varies Varies
Fund Balance July 1, 2001
Activity in 2001-02
Revenues
Fees Collected
Interest Earnings
Total Revenues
Expenditures
Transfer to Capital Improvement Project
Principal Retired
Total Expenditures
Ending Balance June 30, 2002
$0
3,150
3,150
$3,150
$0
1,190
0
0
1,190
0
0
0
0
$1,190
Other Commitments/Appropriations
Reserve for Notes Receivable:
Net Funds Available $3,150 $1,190
USE OF FEES:
No expenditure of funds have been
made from this Fund in FY 2001-02
USE OF FEES:
No expenditure of funds have been
made from this Fund in FY 2001-02