HomeMy WebLinkAboutStaff Report 12104
City of Palo Alto (ID # 12104)
City Council Staff Report
Report Type: Action Items Meeting Date: 3/15/2021
City of Palo Alto Page 1
Summary Title: Public Hearing: Park, Community Center, Library Impact Fee
Study
Title: PUBLIC HEARING: Finance Committee Recommends City Council
Approve Park, Community, and Library Development Impact Fee Justification
Study; Adjustments to Park, Community Center, and Library Development
Impact Fees; Ordinance Updating Park Land In Lieu fee; and Direct Staff to
Implement the Impact Fee Updates With the Fiscal Year 2022 Budget
(Continued From March 8, 2021)
From: City Manager
Lead Department: Community Servi ces
Recommendation
The Finance Committee and Staff recommend that the City Council hold a Public Hearing and:
1. Review and Accept the Park, Community Center, and Library Development Impact Fee
Justification Study and select and approve updated fee levels based on study
recommendations to update the City’s Park, Community Center, and Library Impact Fee
Program,
2. Direct staff to implement the approved fee levels as part of the Fiscal Year 2022 budget
process, and
3. Adopt an ordinance to update the fair market value per acre of land for the Park Land in
Lieu Fee in PAMC section 21.50.070.
This is a duplicate of the report posted on the March 8, 2020 agenda. No changes have been
made from CMR #12027.
Executive Summary
Under California law (AB 1600), cities have the ability to charge new development for its
relative share of the cost to fund the acquisition of land and improvements to public facilities
and services. Impact fees are established based on the reasonable relationship, or nexus,
between impacts caused by new development and the improvements to mitigate those impacts
that will be funded by the fee. Although fees are updated annually to reflect increases in the
Bay Area Consumer Price Index or Engineering News Record Construction Cost Index, baseline
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fee levels for some of the City’s impact fees have not been reviewed or updated in nearly 20
years, nor has the actual cost inflation of land valuation in the City.
On November 8, 2019, staff released an RFP for a Parks, Library, and Community Center
Development Impact Fee Nexus Study. The local firm of DTA was determined to be the most
qualified consultant. DTA prepared the attached Park, Community Center, and Library
Development Impact Fee Justification Study (the “Study”), found in Attachment A, which
provides a detailed legal framework for the imposition of impact fees, defines the City facilities
addressed in the study, illustrates the calculation methodology used, and specifies the
maximum fee levels which the City could charge to new development.
On December 15, 2020, staff and DTA presented the draft study to Finance Committee to
receive feedback prior to presenting to Council (Minutes). Finance Committee passed a motion
to recommend that the City Council approve any adjustments to fee levels and direct staff to
return with the necessary ordinance and fee schedule updates, as well as the addition of a
possible tiered approach to implement the fees.
On February 23, 2021, staff and DTA presented to the Parks and Recreation Commission. The
Commission passed a motion with a 5-2 vote to recommend that City Council adopt an
ordinance based on study recommendations to update the City’s Park, Community Center, and
Library Impact Fee Program. Dissenting commissioners expressed concerns that the fair market
value land valuation figure seemed too low and the square footage per employee used as
demographics information seemed too high. Additionally, there was a request to see
commercial fees differentiated between retail and office space.
The City Council has broad discretion in determining fee schedules, as long as set at or below
the maximum amounts. Council may wish to consider the funding needed to implement
improvements, the effect of fees on the financial feasibility of development, and comparability
with other communities, among other factors.
Discussion
The City’s Park, Community Center, and Library Development Impact Fees were initially
developed in 2001. Table 1 below shows the FY 2020 impact fees for new development based
on land use type.
Table 1. FY 2020 Park, Community Center, and Library Development Impact Fees
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State law requires agencies to identify a reasonable relationship, or nexus, between an impact
fee and new development, and to make findings regarding: (a) the purpose of the fee; (b) what
mitigation projects the fee will be used to fund; (c) the nexus between the fee’s u se and the
type of development on which the fee will be imposed; (d) the nexus between the need for the
public facility and the type of development on which the fee will be imposed; and (e) the nexus
between the amount of the fee and the cost of the public facility attributable to the
development upon which the fee is imposed. The Study is designed to support these findings
and is structured as shown in Table 2 below.
Table 2. Summary of Nexus Study Methodology
Step 1 Demographic Assumptions: Identify future growth that represents the increased
demand for facilities
Step 2 Facility Needs and Costs: Identify the amount of public facilities required to
support the new development and the costs of such facilities
Step 3 Cost Allocation: Allocate costs per equivalent dwelling unit
Step 4 Fee Schedule: Calculate the fee per residential unit or non -residential square foot
To develop new impact fee levels, DTA utilized the Standards-Based Fee Methodology, or Level
of Service (“LOS”), which establishes impact fees based on “standards,” where costs are based
on the existing LOS provided to the community. The existing LOS is based on the square feet of
space, integrated unit, or number of volumes (in the case of Library) per 1,000 Persons Served
for each facility, which is an industry-standard method of quantifying LOS for facilities such as
Parks, Community Centers, and Libraries. The Standards-Based Methodology also relies on the
concept of Equivalent Dwelling Units, or EDUs, to allocate benefit among each of th e land use
categories. EDUs are a mechanism that equates varying land uses to residential dwelling unit
standards in order to equitably calculate fees. The Standards -Based Methodology ensures that
City facilities are appropriately developed and sized so that future residents and employees do
not cause a reduction in LOS by unduly burdening the infrastructure system, thus leading to
decay and deterioration.
To project future development and facility needs, DTA used projections of future population
and development within the City outlined in the City’s 2017 Parks, Trails, Natural Open Space
and Recreation Master Plan, as well as Scenario 3 of the 2017 Comprehensive Plan Update
Draft Environmental Impact Report (“2017 EIR”).
The attached report details the total fee amounts required to finance new residential and non -
residential development’s share of the costs of new facilities as summarized in Table 3 below.
The fees within this study reflect the maximum fee levels that may be legally imposed on new
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residential and non-residential development; however, Council may decide to adopt fee levels
below this maximum.
Table 3. Proposed Maximum Fee Levels for Park, Community Center, and Library
Development Impact Fees
Park Community Center Library Total Fees
Residential
Single Family $57,420 $4,438 $2,645 $64,504
Multi-Family $42,468 $3,283 $1,956 $47,707
Non-Residential
Commercial/Industrial (per 1,000 SF)$16,837 $1,301 $776 $18,914
Hotel/Motel (per 1,000 SF)$2,866 $222 $132 $3,220
City of Palo Alto
Proposed Development Impact Fees (Maximum)
New or increased development impact fees go into effect no sooner than 60 days after
adoption (Government Code § 66017). Development impact fees must be paid based on the
rate in effect at the time of payment. A developer may pay fees at any point after the planning
entitlement has been issued and must pay all applicable fees prior to the issuance of a building
permit, unless otherwise approved by Council.
It is especially important that the City’s fees are calculated based on correct assumptions
regarding the current market value of land. Using CoStar, a leading commercial real estate
database, DTA has analyzed historical sales data of vacant land in the cities of Campbell, Santa
Clara, Sunnyvale, Saratoga, Mountain View, San Jose, and Los Altos and recommends an
updated FMV of $5.7 M. DTA has provided in Table 4 and Chart 1 below a comparison of the
proposed land valuation to those used in neighboring cities and communities, as well as
information approximating when these local agencies last updated their land valuations.
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Table 4. Comparable Land Valuation per Acre
Chart 1. Comparable Land Valuation per Acre
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DTA also reviewed Community Center and Library Development Impact Fees in the cities of
Morgan Hill, Brentwood, Paso Robles, Richmond, and Fremont. These cities were chosen for
their comparable size and because they each have both Community Center and Library
Development Impact Fees. DTA has provided in Table 5 and Chart 2 below a comparison of the
proposed Community Center and Library fees to those used in other cities and communities.
Table 5. Comparable Community Center and Library Development Impact Fees
Jurisdiction Library Single
Family
Library Multi-
Family
Community
Center Single
Family
Community
Center Multi-
Family
Palo Alto (Existing)1 $1,676 $674 $4,827 $2,122
Palo Alto (Proposed)$2,645 $1,956 $4,438 $3,283
Morgan Hill $2,132 $2,054 $3,955 $3,470
Brentwood2 $1,595 $1,179 $1,595 $1,179
Paso Robles3 $942 $942 $2,920 $2,920
Richmond $1,744 $1,744 $1,543 $1,267
Fremont4 $2,569 $1,483 $2,569 $1,483
Notes:
1. Reflects fees for Single Family homes greater than 3,000 sq. ft. and Multi-Family homes
greater than 900 sq. ft.
2. Community Facilities Fee may include Library and Community Centers.
3. General Government Fee may include Community Facilities.
4. General Capital Facilities Fee may include Library and Community Centers.
Chart 2. Comparable Library and Community Center Development Impact Fees
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The City Council has broad discretion in determining fee schedules, as long as set at or below
the maximum amounts. Council may wish to consider the funding needed to implement
improvements, the effect of fees on the financial feasibility of development, and comparability
with other communities, among other factors.
If Council were to decide to adopt a tiered approach to implementation, fee levels could be
gradually increased over a four-year period as shown in Table 6.
Table 6. Tiered Fee Approach
Park Fee
FY 2021-22
Community
Center Fee
FY 2021-22
Library Fee
FY 2021-22
Total Fees
FY 2021-22
Park Fee
FY 2022-23
Community
Center Fee
FY 2022-23
Library Fee
FY 2022-23
Total Fees
FY 2022-23
Single Family $14,355 $1,110 $661 $16,126 $28,710 $2,219 $1,323 $32,252
Multi-Family $10,617 $821 $489 $11,927 $21,234 $1,641 $978 $23,853
Commercial/Industrial (per 1,000 SF)$4,209 $325 $194 $4,728 $8,418 $651 $388 $9,457
Hotel/Motel (per 1,000 SF)$717 $55 $33 $805 $1,433 $111 $66 $1,610
Park Fee
FY 2023-24
Community
Center Fee
FY 2023-24
Library Fee
FY 2023-24
Total Fees
FY 2023-24
Park Fee
FY 2024-25
Community
Center Fee
FY 2024-25
Library Fee
FY 2024-25
Total Fees
FY 2024-25
Single Family $43,065 $3,329 $1,984 $48,378 $57,420 $4,438 $2,645 $64,504
Multi-Family $31,851 $2,462 $1,467 $35,780 $42,468 $3,283 $1,956 $47,707
Commercial/Industrial (per 1,000 SF)$12,628 $976 $582 $14,185 $16,837 $1,301 $776 $18,914
Hotel/Motel (per 1,000 SF)$2,150 $166 $99 $2,415 $2,866 $222 $132 $3,220
Land Use
75% of Proposed Maximum Fee 100% of Proposed Maximum Fee
Land Use
25% of Proposed Maximum Fee 50% of Proposed Maximum Fee
Apart from the three impact fees, the City has a Park land dedication or in lieu fee. In general,
when residential subdivisions are created, this provision requires the developer to dedicate
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land for parks or alternatively pay a fee. The fee is calculated based on the formula outlined in
section 21.50.080 of the municipal code, which itself is based on the fair market value of land.
The fair market value (FMV) was last set in 2006 at $3.9 M per acre. The FMV has been adjusted
each year by the Construction Cost Index (CCI) for calculating annual fee updates. To
harmonize the FMV of land of this fee with the impact fees, the ordinance attached will update
the FMV to $5.7 million per acre. This ordinance will take effect upon approval of the impact
fees which are anticipated to be approved as part of the FY2022 budget process.
Timeline
Based on Council recommendation and approval, new fee levels will be adopted as part of the
FY 2022 annual budget process. Impact fee ordinances require formal public notice and do not
become effective until 60 days after adoption on a second reading.
Resource Impact
Development Impact Fees provide funding for capital improvements to mitigate the impacts of
new development in the community. The revenues received each year vary based on the
amount of residential and non-residential development occurring in Palo Alto during that
timeframe. Revenue adjustments will be brought forward in the annual budget process as
appropriate to recognize the impacts of any fee updated and adopted by the City Coun cil.
According to the FY 2019-20 Annual Status Report on the Development Impact Fees Schedule
(CMR #11746), a total of approximately $583,573 was collected in Park, Community Center, and
Library fees. DTA projects that the total fee revenues will increase by a minimum of two times
should the maximum fee levels be approved and adopted as new fees. Please see Table 7
below for more detail.
Table 7. Current and Projected Revenues
Fee Category Total Revenues Collected
FY 2019-20201
Total Projected
Annual Revenues2
Park $402,902 $1,208,706
Community Center $134,638 $201,957
Library $46,033 $69,050
Total $583,573 $1,479,713
Notes:
1. Total revenues collected reflect last available report as of period ending June 30, 2020.
2. Figures are an approximation and subject to change.
Stakeholder Engagement
The Community Services and Library departments have presented this report to the Finance
Committee on December 15, 2020 (Minutes) and the Parks and Recreation Commission (PRC)
for review.
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Policy Implications
City Council has the authority to charge new development for its relative share of the cost of
specific public facilities, as calculated based on a nexus study. Council also has the authority, for
policy reasons, to restructure fees based on articulated City policies. The information provided
in this report allows Council to take the next step towards reevaluating and adjusting the City’s
Development Impact Fees for Library and Community Services.
Environmental Review
The recommended actions are not considered a Project as defined by the California
Environmental Quality Act pursuant to CEQA regulation 15061(b)(3). The projects associated
with these fees have been fully analyzed as part of the City’s 2030 Comprehensive Plan and its
EIR, as well as the City’s Parks and Open Space Master Plan and its Mitigated Negative
Declaration and no further CEQA analysis is necessary.
Attachments:
• Attachment A: Palo Alto Park, Community Center, and Library Development Impact Fee
Justification Study
• Attachment B: Ordinance Amending PAMC Section 21.50.070 to Update the Fair Market
Value of Land for the Park Land Fees In Lieu of Dedication Fee
I. Inventory of Existing Park Facilities
Facility Facility Units Quantity
City Parks Acres 174.10
Natural Open Space Acres 4,030.00
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33
Bayland Preserve Capital Improvements Integrated Facilities 1.00
Integrated Facilities 1.00
II. Existing Recreation and Park Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Commercial/Industrial (per 1,000 SF) 18,772 23,323 0.80 0.29 6,839
Hotel/Motel (per 1,000 SF)216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
City Parks Acres 174.10 2.02
Natural Open Space Acres 4,030.00 46.66
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 1.78
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.05
Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.01
Integrated Facilities 1.00 0.01
IV. Future Recreation and Park Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Commercial/Industrial (per 1,000 SF) 1,946 2,418 0.80 0.29 709
Hotel/Motel (per 1,000 SF)22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
City Parks Acres 2.02 26.11
Natural Open Space Acres 46.66 604.38
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 1.78 23.10
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 0.05 0.65
Bayland Preserve Capital Improvements Integrated Facilities 0.01 0.15
Foothills Park Capital Improvements Integrated Facilities 0.01 0.15
VI. Park and Open Space Summary Cost Data
Facility Type [5]Facility Units
Facility Units Funded by
Future Development Land Acquisition per Acre Acres Being Developed
Park Development
per Acre [6]
Planning and Design
per Acre [7]Administration (5%) [8]
Total Facility Cost
for New Development Cost per EDU
City Parks Acres 26.11 $5,700,000 26.11 $1,406,530 $84,392 $70,327 $189,590,784 $40,177.63
Natural Open Space Acres 604.38 $57,000 604.38 $40,000 $2,400 $2,000 $61,284,430 $12,987.25
Total $250,875,213 $53,164.88
VII. Parks & Recreation Facility Cost Summary
Facility Type Facility Units Current Development Future Development
Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154 23.10 99,326 1.78 23.10 $663,173 $15,316,334 $3,245.80
Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.65 99,326 0.05 0.65 $6,693,925 $4,346,862 $921.18
Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $25,000,000 $3,749,274 $794.54
Foothills Park Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $15,000,000 $2,249,564 $476.72
Offsetting Revenues ($5,583,312) ($1,183.20)
Total $47,357,098 $20,078,723 $4,255.03
Parks LOS Facilities Fee Total $57,419.91
Notes:
[1]Employee Adjustment Factor of 19.63% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident.
[2]Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020.
[3]Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018.
[4]Estimates based on current Park inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan.
[5]Estimates based on cost assumptions for Park improvement costs provided by City of Palo Alto.
[6]Park development costs have been escalated to Fiscal Year 2019 according to the Construction Cost Index (CCI).
[7]Planning and Design Costs have been estimated to be approximately 6% of development costs, as seen in other California communities.
[8]Administration costs have been estimated at 5% to appropriately reflect City staff's time.
APPENDIX A-1
CITY OF PALO ALTO
PARK DEVELOPMENT IMPACT FEE CALCULATION
Foothills Park Capital Improvements
Foothills Park Capital Improvements
I. Inventory of Existing Community Center Facilities
Facility Facility Units Quantity
Cubberley Community Center Square Feet 65,046
Lucie Stern Community Center Square Feet 12,203
Mitchell Park Community Center Square Feet 15,000
Palo Alto Art Center Square Feet 23,000
Junior Museum and Zoo Square Feet 45,071
Improvements, Upgrades, and Renovations Integrated Unit 5
Building Master Plans Integrated Unit 5
II. Existing Community Center Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Commercial/Industrial (per 1,000 SF) 18,772 23,323 0.80 0.29 6,839
Hotel/Motel (per 1,000 SF)216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
Cubberley Community Center Square Feet 65,046 753.09
Lucie Stern Community Center Square Feet 12,203 141.28
Mitchell Park Community Center Square Feet 15,000 173.67
Palo Alto Art Center Square Feet 23,000 266.29
Junior Museum and Zoo Square Feet 45,071 521.82
Improvements, Upgrades, and Renovations Integrated Unit 5 0.06
Building Master Plans Integrated Unit 5 0.06
IV. Future Community Center Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Commercial/Industrial (per 1,000 SF)1,946 2,418 0.80 0.29 709
Hotel/Motel (per 1,000 SF)22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
Cubberley Community Center Square Feet 753.09 9,755.01
Lucie Stern Community Center Square Feet 141.28 1,830.10
Mitchell Park Community Center Square Feet 173.67 2,249.56
Palo Alto Art Center Square Feet 266.29 3,449.33
Junior Museum and Zoo Square Feet 521.82 6,759.34
Improvements, Upgrades, and Renovations Integrated Unit 0.06 0.75
Building Master Plans Integrated Unit 0.06 0.75
VI. Community Center Summary Cost Data
Facility Type [5]Facility Units
Facility Units Funded
by Future Development Cost Per Unit
Total Facility Cost
for Future Development Cost per EDU
Cubberley Community Center Square Feet 9,755.01 $629 $6,135,363 $1,300.19
Lucie Stern Community Center Square Feet 1,830.10 $629 $1,151,029 $243.92
Mitchell Park Community Center Square Feet 2,249.56 $629 $1,414,852 $299.83
Palo Alto Art Center Square Feet 3,449.33 $629 $2,169,439 $459.74
Junior Museum and Zoo Square Feet 6,759.34 $718 $4,856,117 $1,029.10
Improvements, Upgrades, and Renovations Integrated Unit 0.75 $12,469,894 $9,350,609 $1,981.56
Building Master Plans Integrated Unit 0.75 $171,692 $128,744 $27.28
Total $25,206,154 $5,341.63
VII. Community Center Facility Cost Summary
Facility Type Facility Units Current Development Future Development
Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Cubberley Community Center Square Feet 65,046 9,755.01 99,326 753.09 9,755.01 $629 $6,135,363 $1,300.19
Lucie Stern Community Center Square Feet 12,203 1,830.10 99,326 141.28 1,830.10 $629 $1,151,029 $243.92
Mitchell Park Community Center Square Feet 15,000 2,249.56 99,326 173.67 2,249.56 $629 $1,414,852 $299.83
Palo Alto Art Center Square Feet 23,000 3,449.33 99,326 266.29 3,449.33 $629 $2,169,439 $459.74
Junior Museum and Zoo Square Feet 45,071 6,759.34 99,326 521.82 6,759.34 $718 $4,856,117 $1,029.10
Improvements, Upgrades, and Renovations Integrated Unit 5 0.75 99,326 0.06 0.75 $12,469,894 $9,350,609 $1,981.56
Building Master Plans Integrated Unit 5 0.75 99,326 0.06 0.75 $171,692 $128,744 $27.28
Offsetting Revenues ($4,261,898) ($903.17)
Total $12,644,820 $20,944,256 $4,438.46
Community Center LOS Facilities Fee Total $4,438.46
Notes:
[1]Employee Adjustment Factor of 19.63% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident.
[2]Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020.
[3]Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018.
[4]Estimates based on current Community Center inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan.
[5]Estimates based on cost assumptions for Community Center improvement costs provided by City of Palo Alto.
APPENDIX A-2
CITY OF PALO ALTO
COMMUNITY CENTER DEVELOPMENT IMPACT FEE CALCULATION
I. Inventory of Existing Library Facilities
Facility Facility Units Quantity
Children's Library (1276 Harriet) Square Feet 6,043
College Terrace Library (2300 Wellesley) Square Feet 2,392
Downtown Library (270 Forest Ave.) Square Feet 9,046
Mitchell Library (3700 Middlefield) Square Feet 41,000
Rinconada Library (1213 Newell) Square Feet 29,608
Furniture, Fixtures & Equipment Integrated Unit 5
Volumes Volumes 485,157
Technology Upgrades Integrated Unit 5
II. Existing Library Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Commercial/Industrial (per 1,000 SF) 18,772 23,323 0.80 0.29 6,839
Hotel/Motel (per 1,000 SF)216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
Children's Library (1276 Harriet) Square Feet 6,043 69.96
College Terrace Library (2300 Wellesley) Square Feet 2,392 27.69
Downtown Library (270 Forest Ave.) Square Feet 9,046 104.73
Mitchell Library (3700 Middlefield) Square Feet 41,000 474.69
Rinconada Library (1213 Newell) Square Feet 29,608 342.80
Furniture, Fixtures & Equipment Integrated Unit 5 0.06
Volumes Volumes 485,157 5,617.05
Technology Upgrades Integrated Unit 5 0.06
IV. Future Library Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Commercial/Industrial (per 1,000 SF) 1,946 2,418 0.80 0.29 709
Hotel/Motel (per 1,000 SF)22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
Children's Library (1276 Harriet) Square Feet 69.96 906.27
College Terrace Library (2300 Wellesley) Square Feet 27.69 358.73
Downtown Library (270 Forest Ave.) Square Feet 104.73 1,356.64
Mitchell Library (3700 Middlefield) Square Feet 474.69 6,148.81
Rinconada Library (1213 Newell) Square Feet 342.80 4,440.34
Furniture, Fixtures & Equipment Integrated Unit 0.06 0.75
Volumes Volumes 5,617.05 72,759.46
Technology Upgrades Integrated Unit 0.06 0.75
VI. Library Summary Cost Data
Facility Type [5]Facility Units
Facility Units Funded
by Future Development Cost Per Unit
Total Facility Cost
for New Development Cost per EDU
Children's Library (1276 Harriet) Square Feet 906.27 $629 $569,997 $120.79
College Terrace Library (2300 Wellesley) Square Feet 358.73 $629 $225,622 $47.81
Downtown Library (270 Forest Ave.) Square Feet 1,356.64 $629 $853,250 $180.82
Mitchell Library (3700 Middlefield) Square Feet 6,148.81 $629 $3,867,262 $819.54
Rinconada Library (1213 Newell) Square Feet 4,440.34 $629 $2,792,729 $591.83
Furniture, Fixtures & Equipment Integrated Unit 0.75 $500,000 $374,927 $79.45
Volumes Volumes 72,759.46 $50 $3,637,973 $770.95
Technology Upgrades Integrated Unit 0.75 $500,000 $374,927 $79.45
Total $12,696,686 $2,690.65
VII. Library Facility Cost Summary
Facility Type Facility Units Current Development Future Development
Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Children's Library (1276 Harriet) Square Feet 6,043 906.27 99,326 69.96 906.27 $629 $569,997 $120.79
College Terrace Library (2300 Wellesley) Square Feet 2,392 358.73 99,326 27.69 358.73 $629 $225,622 $47.81
Downtown Library (270 Forest Ave.) Square Feet 9,046 1,356.64 99,326 104.73 1,356.64 $629 $853,250 $180.82
Mitchell Library (3700 Middlefield) Square Feet 41,000 6,148.81 99,326 474.69 6,148.81 $629 $3,867,262 $819.54
Rinconada Library (1213 Newell) Square Feet 29,608 4,440.34 99,326 342.80 4,440.34 $629 $2,792,729 $591.83
Furniture, Fixtures & Equipment Integrated Unit 5 0.75 99,326 0.06 0.75 $500,000 $374,927 $79.45
Volumes Volumes 485,157 72,759.46 99,326 5617.05 72,759.46 $50 $3,637,973 $770.95
Technology Upgrades Integrated Unit 5 0.75 99,326 0.06 0.75 $500,000 $374,927 $79.45
Offsetting Revenues ($214,779) ($45.52)
Total $1,003,195 $12,481,907 $2,645.14
Library Facilities Fee Total $2,645.14
Notes:
[1]Employee Adjustment Factor of 19.63% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident.
[2]Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020.
[3]Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018.
[4]Estimates based on current Library inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan.
[5]Estimates based on cost assumptions for Library improvement costs provided by City of Palo Alto.
APPENDIX A-3
CITY OF PALO ALTO
LIBRARY DEVELOPMENT IMPACT FEE CALCULATION
Service Factor (Residents and Employees)
Residents per Unit/**
Number of Adjusted Adjusted Persons Served EDUs per Unit/Estimated Number of
Land Use Type Persons Served*Persons Served per 1,000 Non-Res. SF per 1,000 Non-Res. SF Units/Non-Res. SF Total EDUs
Single Family 42,392 100%42,392 2.75 1.00 15,443 15,443
Multi-Family 24,992 100%24,992 2.03 0.74 12,310 9,104
Commercial/Industrial (per 1,000 SF)95,653 19.63%18,772 0.80 0.29 23,322,578 6,839
Hotel/Motel (per 1,000 SF)1,101 19.63%216 0.14 0.05 1,577,422 79
Total 164,138 31,465
* Source: David Taussig & Associates; U.S. Census Bureau (ACS); City of Palo Alto Comprehensive Plan Update.
** Persons Served = Residents plus 20% of Employees, customary industry practice designed to capture the reduced levels of service demanded by employees. Subject to change.
Service Factor (Future Residents and Employees)
Residents per Unit/**
Number of Adjusted Adjusted Persons Served EDUs per Unit/Estimated Number of
Land Use Type Persons Served*Persons Served per 1,000 Non-Res. SF per 1,000 Non-Res. SF Units/Non-Res. SF Total EDUs
Single Family 6,911 100%6,911 2.75 1.00 2,517 2,517
Multi-Family 4,074 100% 4,074 2.03 0.74 2,007 1,484
Commercial/Industrial (per 1,000 SF)9,916 19.63% 1,946 0.80 0.29 2,417,876 709
Hotel/Motel (per 1,000 SF)114 19.63% 22 0.14 0.05 163,533 8
Total 21,015 4,719
* Source: David Taussig & Associates; California Dept. of Finance, Demographic Research Unit - Report E-5 May 1, 2020.
** Persons Served = Residents plus 20% of Employees, customary industry practice designed to capture the reduced levels of service demanded by employees. Subject to change.
Number of
Potential Recreation Number of Work Hours Per Weekend Days Potential Recreation Hours Percentage of
User of Facilities Hours per Work Day Days per Week Weekend Day Per Week Per Week Per Person Household Population Person Hours Employee User Percentage
Resident, non-working 10 5 10 2 70 52.38% 37 NA
Resident, working 2 5 10 2 30 47.62% 14 NA
Employee 2 5 0 0 10 NA 10 19.63%
City of Palo Alto Household Population 67,384
City of Palo Alto Labor Force 32,085
Employee Percentage of Household Population 47.62%
APPENDIX A-4
CITY OF PALO ALTO
EDU & EBU CALCULATION YEAR TO BUILD-OUT (2040)
Total Hours of Potential Park, Community Center, and Library Usage per Week
Existing EDU Calculation (FY 2020)
Future EDU Calculation (FY 2040)
Employment Adjustment
Factor
Employment Adjustment
Factor
*NOT YET APPROVED*
1
0223_20210223_ts24
Ordinance No. ___
Ordinance of the Council of the City of Palo Alto Amending Section 21.50.070
(Calculation of fair market value) of Chapter 21.50 (Park Land Dedication or
Fees In Lieu Thereof) of Title 21 (Subdivisions and Other Divisions of Land) to
Update the Fair Market Value of Land.
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and declarations. The City Council finds and declares as follows:
1. Pursuant to local law and the state Quimby Act (see Gov. Code section 66477 et
seq.), the City requires park land dedication or fees in lieu thereof when creating a subdivision as
detailed in Palo Alto Municipal Code chapter 21.50;
2. The City Council approved a Park, Community Center, and Library Development
Impact Fee Justification Study on March 8, 2021 in which it was determined that the fair market
value of land for acquisition for City parks is $5.7 million per acre in Palo Alto; and
3. The City Council now desires to update the fair market value per acre of land for
the purposes of Chapter 21.50 to $5.7 million per acre.
SECTION 2. Subsection (b) of Section 21.50.070 (Calculation of fair market value) of
Chapter 21.50 (Park Land Dedication or Fees In Lieu Thereof) of Title 21 (Subdivisions and Other
Divisions of Land) is hereby amended as follows (new text in underline, deleted text in
strikethrough):
21.50.070 Calculation of fair market value.
(a) At the time of submission a final subdivision map for approval, the city shall, in those cases
where a fee in lieu of dedication is required either in whole or in part, determine the fair market
value of the land in the proposed residential development, and this determination shall be used
in calculating the fee to be paid. If the developer objects to the fair market value, the city, at
developer's expense, shall obtain an appraisal of the property by a qualified independent real
estate appraiser, agreed to by the city and the developer, and the value established by said
appraiser using standard recognized appraisal techniques to establish fair market value will be
accepted as the fair market value of the land in the proposed development. Alternatively, the
city and the developer may agree as to the fair market value.
(b) The fair market value per acre of land for the purposes of the calculation in § 21.50.080 is
$3.9 $5.7 million per acre.
(c) The rate of the fee shall be subject to annual adjustment for inflation pursuant to Section
16.64.110.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.
The City Council hereby declares that it would have passed this Ordinance and each and every
section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without
*NOT YET APPROVED*
2
0223_20210223_ts24
regard to whether any portion of the Ordinance would be subsequently declared invalid or
unconstitutional.
SECTION 4. The Council finds this ordinance to update this fee is not considered a Project
as defined by the California Environmental Quality Act pursuant to CEQA regulation 15061(b)(3).
The projects associated with this fee have been fully analyzed as part of the City’s 2030
Comprehensive Plan and its EIR, as well as the City’s Parks and Open Space Master Plan and its
Mitigated Negative Declaration and no further CEQA analysis is necessary.
SECTION 5. This Ordinance shall be effective upon the effective date of the revised Parks,
Open Space, and Library impact fees anticipated to be approved with the City’s fiscal year 2022
budget, but in no case shall the ordinance be effective less than thirty-one days after the date of
its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Deputy City Attorney City Manager
____________________________
Director of Community Services
____________________________
Director of Administrative Services