HomeMy WebLinkAboutStaff Report 12281
CITY OF PALO ALTO OFFICE OF THE CITY CLERK
May 17, 2021
The Honorable City Council
Palo Alto, California
SECOND READING: Finance Committee Recommends City Council
Approve Park, Community Center, and Library Development Impact
Fee Justification Study; Adjustments to Park, Community Center, and
Library Development Impact Fees; Adopt the 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) (FIRST READING: April 12, 2021 PASSED: 6-1 Tanaka no)
This Ordinance was first heard by the City Council on April 12, 2021 and was
passed 6-1, Tanaka no.
MOTION AS AMENDED: Vice Mayor Burt moved, seconded by Council Member
Kou to:
A. 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;
B. Direct Staff to implement the approved fee levels as part of the Fiscal Year
2022 budget process;
C. 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; and
D. Direct the Finance Committee and Parks and Recreation Commission to
review the fee structures next Fiscal Year with a focus on:
i. Updated land acquisition costs;
ii. The differentiating fee structure for retail space versus office space;
iii. An update on office density;
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iv. Recommendation from the Finance Committee on the frequency
these schedules should be updated;
v. Recommendations on if there should be changes between multi-and
single-family fee structures; and
vi. Direct Staff to evaluate a reduction in fees for new multi-family
housing construction for projects that would exceed required
percentages of Below Market Rate units.
MOTION SPLIT FOR THE PURPOSE OF VOTING
MOTION AS AMENDED FOR PARTS A-C PASSED: 6-1 Tanaka no
MOTION AS AMENDED FOR PART D PASSED: 7-0
ATTACHMENTS:
• Attachment A: Ordinance Second Reading (PDF)
Department Head: Beth Minor, City Clerk
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*NOT YET APPROVED*
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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*
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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