HomeMy WebLinkAboutStaff Report 2391City of Palo Alto (ID # 2391)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 1/9/2012
January 09, 2012 Page 1 of 5
(ID # 2391)
Summary Title: Annual Status Report on Developers' Fees FY 2011
Title: Review and Acceptance of Annual Status Report on Developers' Fees for
Fiscal Year 2011
From:City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that the City Council review and accept the Annual Report on Developers'
Fees for the period ending June 30, 2011 (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.
o The amount of fees collected and interest earned.
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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 12, 2011 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:
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o 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.
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 Parkland dedication fees (Quimby Act) (California Government Code Section 66477):
Fees or parkland dedication imposed on new residential and non-residential
development.
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 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.
o Water and sewer capacity fees (California Government Code Section 66000): Fee on
developments adding load to water and sewer systems.
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
January 09, 2012 Page 4 of 5
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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/El 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/El Camino Real fund for major intersection improvements at the Page Mill/Hanover
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, 2011 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. The next interval for approving findings for unexpended fees is fiscal year 2012 for
the fees continued in 2007 and fiscal year 2013 for the fees continued in 2008.
Policy Implications
This report does not represent any change to existing City policies.
Environmental Review
Presentation of this annual report is not a project under the California Environmental Quality
Act; accordingly, no environmental assessment is required.
Attachments:
·Attachment A: DeveloperFeeAttach11 (XLS)
Prepared By:Allen Lee, Senior Accountant
Department Head:Lalo Perez, Director
January 09, 2012 Page 5 of 5
(ID # 2391)
City Manager Approval: ____________________________________
James Keene, City Manager
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2011
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 $10.38 per square foot $2.14 per square foot
Fund Balance July 1, 2010 $2,668,906 $761,804
Activity in 2010-11
Revenues
Fees Collected 0
Interest Earnings 84,150 24,017
Unrealized Gain/Loss Investments (19,843)(6,402)
Transfer In from Gas Tax Fund
Transfer In from CIP Fund
--------------------------------------------------------------------------------------------------------------------
Total Revenues $64,307 $17,615
Expenditures
Other 0 0
Charleston/Arastradero Corridor
Improvements 0 0
(PL-05002)
--------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 0
--------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2011 $2,733,213 $779,420
Net Funds Available $2,733,213 $779,420
USE OF FEES:USE OF FEES:
No expenditures have been made from
this fund in Fiscal Year 2011. Fees are
planned to be used for Gunn High School
entrance near Foothill/Arastradero.
No expenditures have been made from this
fund in Fiscal Year 2011. 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 1/3/2012
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2011
University Avenue
Commercial Housing Parking Assessment District
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 $17.97 per square foot $64,272 per space
Fund Balance July 1, 2010 $1,737,554 $102,486
Activity in 2010-11
Revenues
Other Revenue from Other Agencies 392,253 0
Interest Earnings 66,065 3,232
Unrealized Gain/Loss Investments (2,418)(704)
From State of California 258,366
--------------------------------------------------------------------------------------------------------------------
Total Revenues 714,266 2,528
Expenditures
Purchase of 801 Alma property 0 0
Consultant Fees 0
--------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 0
--------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2011 $2,451,820 $105,014
Other Commitments/Appropriations
Encumbrances 0
Reserve for unrealized gain on
investments (79,604)(4,422)
Net Funds Available $2,372,216 $100,592
USE OF FEES:USE OF FEES:
No expenditure of funds have been made
from this fund in Fiscal Year 2011.
No expenditure of funds have been made
from this fund in Fiscal Year 2011.
Page 2 of 8 1/3/2012
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2011
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
$9,971/residence (or $14.890/residence
larger than 3,000 sq ft); Multifamily
$6,527/unit (or $3,300/unit smaller than or
equal to 900 sq ft)
Residential: Single family $2,585/residence
(or $3,870/residence larger than 3,000 sq ft);
Multifamily $1,700/unit (or $858/unit smaller
than or equal to 900 sq ft)
Nonresidential: Commercial/industrial
$4,234 per 1,000 sq ft; Hotel/Motel
$1,915.00 per 1,000 sq ft
Nonresidential: Commercial/industrial
$239.00 per 1,000 sq ft; Hotel/Motel $108.00
per 1,000 sq ft
Fund Balance July 1, 2010 $2,803,275 $1,479,343
Activity in 2010-11
Revenues
Fees Collected 151,203 32,133
Interest Earnings 87,361 47,282
Unrealized Gain/Loss (8,585)(7,442)
Transfer In from CIP Fund 0 0
--------------------------------------------------------------------------------------------------------------------
Total Revenues $229,979 $71,973
Operating Transfer to Capital Projects
Fund (220,000)0
--------------------------------------------------------------------------------------------------------------------
Total Expenditures (220,000)0
--------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2011 $2,813,254 $1,551,316
Other Commitments/AppropriationsReserve for unrealized gain on
investments (107,613)(57,492)--------------------------------------------------------------------------------------------------------------------
Net Funds Available $2,705,641 $1,493,824
USE OF FEES:USE OF FEES:
Budgeted transfers in the amount of
$220,000 were made to the Capital
Improvement Fund in Fiscal Year 2011 for
Park Restroom Installation (PE- 06007)
No expenditure of funds have been made
from this Fund in Fiscal Year 2011.
Page 3 of 8 1/3/2012
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2011
(INFORMATION ONLY)
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-
market rate unit(s) to low and moderate
PAMC Ch. 16.58 income households.
PA Comprehensive Plan and
PAMC Chapter 18
Amount of the Fee
Residential: Single family $902/residence
(or $1,344/residence larger than 3,000 sq
ft); Multifamily $539/unit (or $296/unit
smaller than or equal to 900 sq ft)Varies
Nonresidential: Commercial/industrial
$228.00 per 1,000 sq ft; Hotel/Motel
$96.00 per 1,000 sq ft
Fund Balance July 1, 2010 $519,727 $6,262,302
Activity in 2010-11
Revenues
Fees Collected 17,639 1,312,472
Webster Wood In-Lieu Payment 0 4,475
Palo Alto Bimmer In-Lieu Payment 0 15,000
Interest Earnings 16,712 119,424
Unrealized Gain/Loss Investments (1,576)(9,656)
Tax Credit Refund 1,000
--------------------------------------------------------------------------------------------------------------------
Total Revenues $32,775 $1,442,714
Expenditures
Legal (32,419)
Housing Program Expense 0 (118,917)
Principal Retired (116,504)
Grants (100,000)
--------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 (367,840)
--------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2011 $552,502 $7,337,176
Other Commitments/Appropriations (43,664)Reserve for unrealized gain on
investments (20,638)(100,242)
Reserve for Notes Receivable include
$375,000 for 3053 Emerson, $3,611,254
for Tree House Apts, $705,125 for Oak
Manor, $756,819 for Sheridan Apts. and
$35,694 for Palo Alto Gardens.(5,483,892)
--------------------------------------------------------------------------------------------------------------------
Net Funds Available $531,864 $1,709,378
USE OF FEES:USE OF FEES:
Page 4 of 8 1/3/2012
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2011
No expenditure of funds have been made
from this Fund in Fiscal Year 2011.
Expenditures in Fiscal Year 2011 include
$118,917 to Palo Alto Housing Corp for BMR
fees, $116,504 for Oak Manor Apts loan
forgiveness, and $100,000 to Housing Trust
of SC County for affordable housing.
Page 5 of 8 1/3/2012
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2011
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-
rian and bicyclist safety improvements.
Govt Code Sec.66477 (Quimby Act) PAMC Ch. 16.60
Amount of the Fee Varies Residential: $1,045.11 per unit; Commercial:
$0.31 per sq ft
Fund Balance July 1, 2010 $311,950 $487,226
Activity in 2010-11
Revenues
Fees Collected 244,519 0
Interest Earnings 13,674 13,948
Unrealized Gain/Loss Investments 2,545 (4,525)
--------------------------------------------------------------------------------------------------------------------
Total Revenues $260,739 $9,423
Expenditures
Operating Transfer to Capital Projects
Fund 0 (81,900)
--------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 (81,900)
--------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2011 $572,689 $414,749
Other Commitments/ReappropriationsReserve for unrealized gain on
investments 0 0
--------------------------------------------------------------------------------------------------------------------
Net Funds Available $572,689 $414,749
USE OF FEES:USE OF FEES:
No expenditure of funds have been made
from this Fund in Fiscal Year 2011.
Budgeted transfers in the amount of $81,900
were made the the Capital Improvement
Fund in Fiscal Year 2011 for the Corridor
Plan (PL-05002).
Page 6 of 8 1/3/2012
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2011
Citywide Transportation
FUND
Purpose and Authority for Collection
Transportation impact fees imposed on
new development in all parts of the City to
fund congestion reduction projects.
PAMC Ch. 16.59
Amount of the Fee $2,861 per net new PM peak hour trip
Fund Balance July 1, 2010 $180,552
Activity in 2010-11
Revenues
Fees Collected 49,852
Interest Earnings 6,438
Unrealized Gain/Loss Investments 536 --------------------------------------------------------
Total Revenues $56,826
ExpendituresOperating Transfer to Capital Projects
Fund 0
Operating Transfer to BMR Fund
Principal Retired
--------------------------------------------------------
Total Expenditures 0 --------------------------------------------------------
Ending Balance June 30, 2011 $237,378
Other Commitments/Reappropriations
Reserve for unrealized gain on
investments 0 --------------------------------------------------------
Net Funds Available $237,378
USE OF FEES:
No expenditure of funds have been made
from this Fund in Fiscal Year 2011.
Page 7 of 8 1/3/2012
Exhibit A
City of Palo Alto
Annual Report on Developers' Fees
for Period Ending June 30, 2011
(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 Domestic: 5/8 in., 3/4 in. $5,000, 1
in. $9,400, 1 1/2 in. $18,850, 2 in. by est.
$125/FU, 3 in. by est. $125/FU , 4 in. by
est. $125/FU , 6 in. by est. $125/FU
Water Fire Service: 2 in. $750, 4 in.
$9,000, 6 in. $22,530, 8 in. $43,080, 10in.
$69,510
Sewer: 4 in. $10,500 first 50 FU, $210/FU
additional, 6 in. by est. $210/FU, 8 in. by
est. $210/FU
FU is fixture unit
Activity in 2010-11
Capacity Fees Collected
Water $863,897
Wastewater Collection 506,580
Total $1,370,477
USE OF FEES:
The fees are used exclusively for water
and sewer system improvements
Page 8 of 8 1/3/2012