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HomeMy WebLinkAboutStaff Report 8656 City of Palo Alto (ID # 8656) City Council Staff Report Report Type: Informational Report Meeting Date: 12/4/2017 City of Palo Alto Page 1 Summary Title: Annual Impact Fee Status Report Title: Annual Report on Development Impact Fees - Early Publication of Report for Public Review From: City Manager Lead Department: Administrative Services Executive Summary The Annual Status Report on Developers’ Fees provides specific information about development impact fees imposed by the City. The schedule prepared in accordance with Government Code Section 66006 (AB1600) must be made available to the public at least 15 days before the Council meeting at which it is considered and within 180 days of the close of the fiscal year. Since the report is scheduled on the City Council Agenda of January 22, 2018, it is being included in this early packet to allow time for public review. Additional information will be available in the January 22, 2018 report. Attachments:  Attachment A : FY17 Development Impact Fees Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2017 Stanford Research Park/San Antonio/West FUND El Camino Fund Bayshore Fund Purpose and Authority Traffic impact fees imposed on new Traffic impact fees imposed on new for Collection nonresidential development in the nonresidential development in the Stanford Research Park/El Camino San Antonio/West Bayshore Areas Real CS zone to fund improvements to fund capacity improvements at at eight identified intersections.four identified intersections. PAMC Ch. 16.45 PAMC Ch. 16.46 Amount of the Fee $12.36 per square foot $2.55 per square foot Fund Balance July 1, 2016 $3,279,523 $891,219 Activity in 2016-17 Revenues Fees Collected 0 0 Interest Earnings 61,946 16,836 Unrealized Gain/Loss Investments (67,612)(17,846) -------------------------------------------------------------------------------------------------------------------- Total Revenues ($5,666)($1,010) -------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 0 -------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2017 $3,273,857 $890,209 -------------------------------------------------------------------------------------------------------------------- Net Funds Available $3,273,857 $890,209 Unexpended balance at next finding date (FY 2017-18)$2,331,269 $820,629 USE OF FEES:USE OF FEES: No expenditures have been made from this fund in Fiscal Year 2017. Funds will support intersection improvements at Page Mill Road/Hanover and Page Mill Road/Hansen concurrent with construction of the project at 1050 Page Mill Road under a cooperative agreement currently being negotiated with the developer and the County. No expenditures have been made from this fund in Fiscal Year 2017. Page 1 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2017 Commercial Housing University Avenue Parking FUND In-Lieu Fund In-Lieu Fund Purpose and Authority Fees imposed on large commercial Fees collected from non-residential for Collection and industrial development to development within the University Ave. contribute to programs that increase Parking Assessment District in lieu of the City's low income and moderate-providing the required number of income housing stock.parking spaces. PAMC Ch.16.47 PAMC Ch 16.57 Amount of the Fee $20.37 per square foot $67,429 per space Fund Balance July 1, 2016 $17,727,522 $3,589,668 Activity in 2016-17 Revenues Fees Collected 1,518,933 Prior year fees refunded (6,960) Sale of Property Interest Earnings 265,414 68,061 Unrealized Gain/Loss Investments (218,076)(88,194) Operating Transfers Transfer from Housing In-Lieu Fund Transfer from SUMC -------------------------------------------------------------------------------------------------------------------- Total Revenues 1,566,271 (27,093) Expenditures Salaries and Benefit (1,102) Other Contract Services (14,828) Transfer to Capital Projects Reclassify prior year expense to loan -------------------------------------------------------------------------------------------------------------------- Total Expenditures (15,930)0 -------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2017 $19,277,863 $3,562,575 Other Commitments/Appropriations Reserve for Notes Receivable include:$1,290,000 for 2811 Alma, and $4,137,254 for 801 Alma.(5,427,254) Reserve for Buena Vista (7,700,000) Reserve for Encumbrance (16,569) --------------------------------------------------------------------------------------------------------------------Net Funds Available $6,134,040 $3,562,575 Page 2 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2017 Unexpended balance at next finding date (FY 2017-18)7,571,279 $0 USE OF FEES:USE OF FEES: Expenditures of funds have been made in Fiscal Year 2017 for $1.1K for Management Analyst salaries and benefit, $14.8K for housing nexus study and consultantcy fees. The $7.7 million Reserve for Buena Vista is included for unexpended balance calculation purposes because this was only set aside by council motion. No expenditures have been made from this fund in Fiscal Year 2017. Page 3 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2017 Residential & Non-Residential Housing Residential & Non-Residential Housing Community Facilities Community Facilities FUND Parks Community Centers Purpose and Authority Fees imposed on new residential and Fees imposed on new residential and for Collection non-residential development approved non-residential development approved after Jan 28, 2002 for Parks. after Jan 28, 2002 for Community Centers. PAMC Ch. 16.58 PAMC Ch. 16.58 Amount of the Fee Residential: Single family $11,864 per residence (or $17,716 per residence larger than 3,000 sq ft); Multi-family $7,766 per unit (or $3,926 per unit smaller than or equal to 900 sq ft) Residential: Single family $3,075 per residence (or $4,605 per residence larger than 3,000 sq ft); Multi-family $2,024 per unit (or $1,021 per unit smaller than or equal to 900 sq ft) Nonresidential: Commercial/Industrial $5,038 per 1,000 sq ft or fraction thereof; Hotel/Motel $2,278 per 1,000 sq ft or fraction thereof Nonresidential: Commercial/industrial $284 per 1,000 sq ft or fraction thereof; Hotel/Motel $128 per 1,000 sq ft or fraction thereof Fund Balance July 1, 2016 $4,013,156 $5,821,379 Activity in 2016-17 Revenues Fees Collected 436,376 53,053 Interest Earnings 78,769 110,325 Unrealized Gain/Loss (82,012)(115,279) -------------------------------------------------------------------------------------------------------------------- Total Revenues $433,133 $48,099 -------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 0 -------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2017 $4,446,289 $5,869,478 --------------------------------------------------------------------------------------------------------------------Net Funds Available $4,446,289 $5,869,478 Unexpended balance at next finding date (FY 2016-17)430,859 $822,873 USE OF FEES:USE OF FEES: No expenditure of funds have been made from this Fund in Fiscal Year 2017. No expenditure of funds have been made from this Fund in Fiscal Year 2017. Page 4 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2017 Residential & Non-Residential Housing Residential Housing Community Facilities In-Lieu Fund FUND Libraries Purpose and Authority Fees imposed on new residential and Fees collected from residential for Collection non-residential development approved developments of three or more units in after Jan 28, 2002 for Libraries. lieu of providing the required below- PAMC Ch. 16.58 market rate unit(s) to low and moderate income households. PA Comprehensive Plan and PAMC Chapter 18 Amount of the Fee Residential: Single family $1,074 per residence (or $1,599 per residence larger than 3,000 sq ft); Multi-family $642 per unit (or $353 per unit smaller than or equal to 900 sq ft)Varies Nonresidential: Commercial/industrial $271 per 1,000 sq ft or fraction thereof; Hotel/Motel $114 per 1,000 sq ft or fraction thereof Fund Balance July 1, 2016 $974,829 $21,572,925 Activity in 2016-17 Revenues Fees Collected 31,162 1,305,825 Monroe Litigation Settlement Webster Wood Property Rental 5,875 Interest Earnings 18,614 272,727 Unrealized Gain/Loss Investments (19,118)(241,936) -------------------------------------------------------------------------------------------------------------------- Total Revenues $30,658 $1,342,491 Expenditures Salaries and Benefits (1,102) Contract Services (149,771) Housing Program Expense (68,226) -------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 (219,099) -------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2017 $1,005,487 $22,696,317 Other Commitments/Appropriations Reserve for Reappropriations (323,500) Reserve for Encumbrances (70,372) Reserve for Buena Vista (6,800,000) Reserve for Notes Receivable include $375,000 for 3053 Emerson, $3,804,850 for Tree House Apts, $747,734 for Sheridan Apts., $2,285,026 for 801 Alma, $1,000,000 for Palo Alto Housing Project, $600,000 for 2811-2825 Alma St., $203,561 for Colorado Park Housing, and $51,523 for El Dorado Palace.(9,067,694) --------------------------------------------------------------------------------------------------------------------Net Funds Available $1,005,487 $6,434,751 Page 5 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2017 Unexpended balance at next finding date (FY 2016-17-Residential & Non Residential Housing Communities Facilities Libraries, FY2017-18- Residential Housing In-Lieu)$537,983 $2,114,048 USE OF FEES:USE OF FEES: No expenditure of funds have been made from this Fund in Fiscal Year 2017. Expenditures in Fiscal Year 2017 include $1.1K for Management Analyst salaries and benefit, $135K to Palo Alto Housing Corp for BMR fees and $15K for housing nexus study and consultancy fees. The $6.8 million Reserve for Buena Vista is included for unexpended balance calculation purposes because this was only set aside by council motion Page 6 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2017 Parkland Dedication Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety FUND Purpose and Authority Fees on parkland dedication imposed Fees collected from new development and for Collection on new residential and non-residential re-development within the Charleston- development Arastradero Corridor to provide for pedest- Govt Code Sec.66477 (Quimby Act) rian and bicyclist safety improvements. PAMC Ch. 16.60 Amount of the Fee Single Family: $58,812 per unit; Multi- Family: $40,103 per unit. This applies only to residential projects that require a subdivision or pacel map. Land dedications is required for subdivisions resulting in more than 50 parcels. Parkland Dedication Fee -Land: Single Family: 531 sq. ft, per unit; Multi-Family: 366 sq. ft. per unit. When parkland dedication applies, park impact fees do not apply. Residential: $1,300 per unit; Commercial: $0.38 per sq ft Fund Balance July 1, 2016 $3,263,832 $10,540 Activity in 2016-17 Revenues Fees Collected 67,502 Interest Earnings 61,838 191 Unrealized Gain/Loss (61,270)(1,869) -------------------------------------------------------------------------------------------------------------------- Total Revenues $68,070 ($1,678) Expenditures Operating Transfer to Capital Projects Fund -------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 0 -------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2017 $3,331,902 $8,862 --------------------------------------------------------------------------------------------------------------------Net Funds Available $3,331,902 $8,862 Unexpended balance at next finding date (FY 2016-17-Parkland Dedication, FY2017-18-Charleston)$745,936 $0 USE OF FEES:USE OF FEES: No expenditure of funds have been made from this Fund in Fiscal Year 2017. No expenditure of funds have been made from this Fund in Fiscal Year 2017. Page 7 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2017 New Public Safety Facilities General Government Facilities FUND Purpose and Authority Fees imposed on residential and Fees imposed on residential and non- for Collection non-residential development to fund residential development to fund facilities police and fire facilities (including fire associated with municipal administration. apparatus and vehicles) PAMC Ch. 16.58 Amount of the Fee Residential: Single family $1,031 per unit; Multi-family $825 per unit Residential: Single family $1,299 per unit; Multi-family $1,039 per unit Nonresidential: Commercial $576 per 1,000 sq ft. or fraction thereof; Industrial $192 per 1,000 sq. ft. or fraction thereof; Hotel/Motel $769 per 1,000 sq ft or fraction thereof Nonresidential: Commercial $726 per 1,000 sq ft. or fraction thereof; Industrial $242 per 1,000 sq. ft. or fraction thereof; Hotel/Motel $970 per 1,000 sq ft or fraction thereof Fund Balance July 1, 2016 $20,983 $26,430 Activity in 2016-17 Revenues Fees Collected 65,556 82,608 Interest Earnings 814 1,025 Unrealized Gain/Loss (193)(243) -------------------------------------------------------------------------------------------------------------------- Total Revenues $66,177 $83,390 -------------------------------------------------------------------------------------------------------------------- Total Expenditures 0 0 -------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2017 $87,160 $109,820 --------------------------------------------------------------------------------------------------------------------Net Funds Available $87,160 $109,820 Unexpended balance at next finding date FY 2019-20 $1,403 $1,768 USE OF FEES:USE OF FEES: No expenditure of funds have been made from this Fund in Fiscal Year 2017. No expenditure of funds have been made from this Fund in Fiscal Year 2017. Page 8 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2017 Citywide Transportation FUND Purpose and Authority Transportation impact fees imposed for Collection on new development in all parts of the City to fund congestion reduction projects. PAMC Ch. 16.59 Amount of the Fee $3,559 per net new PM peak hour trip Fund Balance July 1, 2016 $3,025,738 Activity in 2016-17 Revenues Fees Collected 375,795 Interest Earnings 55,919 Unrealized Gain/Loss Investments (57,447)-------------------------------------------------------- Total Revenues $374,267 Expenditures Operating Transfer to CIP (432,050) -------------------------------------------------------- Total Expenditures (432,050)-------------------------------------------------------- Ending Balance June 30, 2017 $2,967,955 -------------------------------------------------------- Net Funds Available $2,967,955 Unexpended balance at next finding date (FY 2017-18)$829,261 USE OF FEES: Expenditures have been made in FY2017 for $432K transfer to capital projects. Page 9 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2017 (INFORMATION ONLY) Public Art Fund FUND Purpose and Authority for collection Fees imposed on new commercial develoments (including mixed use projects), including new construction, remodels, additions and reconstruction that (i) have a floor area of 10,000 square feet or more, and (ii) have a construction value of $200,000, or more, exclusive of costs for architecture, design, engineering, and required studies; and all new residential projects of five or more units to fund public art for private developments. PAMC Ch. 16.61 Amount of the Fee 1% of first $108.87 million construction valuation and .9% of construction valuation for valuation in excess of $108.87 million Fund Balance July 1, 2016 $281,548 Activity in 2016-17 Revenues Fees Collected 351,809 Interest Earnings 6,530 Unrealized Gain/Loss Investments (7,916) Operating Transfer from General Fund 78,506 -------------------------------------------------------- Total Revenues $428,929 Expenditures Salaries and benefits (159,637) General Expenses (77) -------------------------------------------------------- Total Expenditures (159,714) -------------------------------------------------------- Ending Balance June 30, 2017 $550,763 --------------------------------------------------------Net Funds Available $550,763 This fund is not subject to AB1600 requirements and is listed only for information purposes Page 10 of 11 Attachment A City of Palo Alto Annual Report on Development Impact Fees for Period Ending June 30, 2017 (INFORMATION ONLY) FUND Water and Wastewater Collection 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 Capacity Fees: 5/8 in., 3/4 in E- Meter. $5,000, 1 in. E-Meter $9,400, 1 1/2 in. E-Meter $18,850, 2 in. E-Meter $56,250 , 4 in. Compound Meter by est. $125/FU (min. 5,000 FU) , 6 in. Compound Meter by est. $125/FU (min. 7,000 FU) Fire Service Capacity Fees: 2 in. $750, 4 in. $9,000, 6 in. $22,530, 8 in. $43,080, 10in. $69,510 Sewer Capacity Charges: 4 in. connection with 5/8 in Water Meter (WM) $5,250, 4 in connection. with 1-in WM $15,750, 4 or 6 in. connection with 1-1/2 in WM $31,668, 6 in. connection with 2 in. WM $94,500, 6 in. and larger connection with 4 in. or larger WM by est. at $210/FU Activity in 2016-17 Capacity Fees Collected Water $1,088,535 Wastewater Collection 803,838 Total $1,892,373 USE OF FEES: The fees are used exclusively for water and sewer system improvements Page 11 of 11