HomeMy WebLinkAboutStaff Report 14633
City of Palo Alto (ID # 14633)
City Council Staff Report
Meeting Date: 12/5/2022 Report Type: Information Reports
City of Palo Alto Page 1
Title: Annual Status Report on the Developer Impact Fees Schedule as of June
30, 2022
From: City Manager
Lead Department: Administrative Services
Recommendation
This is an information report; no action is required.
Discussion
The Annual Status Report on Development Impact 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 23, 2023, it
is being included as an information report this December to allow time for public notice in
excess of the minimum 15-day advanced posting requirement. Additional information will be
available in the January 23, 2023 report.
Stakeholder Engagement
This report has been prepared by the Accounting Division and reviewed by partner
departments including the City Attorney’s Office, and the Planning and Development Services
Department.
Resource Impact
This is an Informational Report, so no actions or adjustments are needed at this time.
Environmental Review
This is not a project for purposes of the California Environmental Quality Act (CEQA).
Attachments:
• Attachment A: Development Impact Fees FY22
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2022
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 City ceased collecting effective FY 2020 City ceased collecting effective FY 2020
Fund Balance July 1, 2021 $3,519,739 $434,996
Activity in 2021-22
Revenues
Interest Earnings 33,656 6,877
Unrealized Gain/(Loss) Investments (206,212)(34,466)
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues ($172,556)($27,588)
Expenditures
Inter-Agency Expense (2,200,000) -
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures ($2,200,000) -
-------------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2022 $1,147,183 $407,408
Reserves
Other Commitments/Appropriations - -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - -
----------------------------------------------------------- --------------------------------------------------------------
Net Funds Available $1,147,183 $407,408
USE OF FEES:USE OF FEES:
In FY 2020, City ceased collecting the Stanford
Research / El Camino Real CS Zone fee established
in 1989.
In FY 2022, $2.2M expense to fund Sharing
Agreement between the City and the County of
Santa Clara for improvements of Mill Road
intersections at both Hanover Street and El Camino
Real (CMR 13439).
No expenditures have been made for this fund in
Fiscal Year 2022. In FY 2020, City ceased collecting the
San Antonio/West Bayshore area fee established in
1986.
Commercial Housing University Avenue Parking
FUND Impact Fee Fund In-Lieu Fund
Purpose and Authority Fees imposed on commercial and industrial Fees collected from non-residential
for Collection development to offset the demand that development within the University Ave.
new jobs create for low and moderate-Parking Assessment District in lieu of
income housing in the City providing the required number of
parking spaces.
PAMC Ch.16.65 PAMC Ch 16.57
Amount of the Fee
Hotel / Retail / Other Non Residential:
$23.11 per sq. ft.
Office/R&D: $39.70 per sq. ft. $115,404.00 per space
Fund Balance July 1, 2021 $25,967,219 $6,424,611
Activity in 2021-22
Revenues
Fees Collected 1,428,224
Interest Earnings 54,217 101,582
Unrealized Gain/(Loss) Investments (300,408)(507,159)
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues 1,182,033 (405,577)
Expenditures
Salaries and Benefit (34,894) -
Liability Insurance (855) -
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures (35,749) -
----------------------------------------------------------- --------------------------------------------------------------
Ending Balance June 30, 2022 $27,113,503 $6,019,034
Reserves
Other Commitments/Appropriations - -
Reserve for Notes Receivable includes:(23,629,563)$1,290,000 for 2811 Alma
$4,137,254 for 801 Alma
$7,700,000 for Bueva Vista Mobile Home Park
$10,502,309 Wilton Court -
Reserve for Reappropriations (1,167,000) -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves (24,796,563) - -------------------------------------------------------------------------------------------------------------------------
Net Funds Available $2,316,940 $6,019,034
USE OF FEES:
Expenditures in Fiscal Year 2022 are $35K
for salaries and benefits. Reserve for
Reappropriaton is for Affordable Housing
Loan Agreement: 3705 El Camino Real
(Wilton Court).
This fund is not subject to AB1600 requirements and is listed only for information purposes.
USE OF FEES:No expenditures have been made from this fund in
Fiscal Year 2022.
FUTURE USE OF FEES:
$5.5M programmed in FY 2023 for New Downtown Parking Garage Project (PE-15007) as part of the
2023-2027 Capital Improvement Plan (CIP).
Residential & Non-Residential Residential & Non-Residential
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 $57,420 per unit.
(ADUs under 750 sq ft exempt)
Residential: Single family $4438 unit.
(ADUs under 750 sq ft exempt)
Nonresidential: Commercial/Industrial
$16,837 per net new 1,000 sq ft;
Hotel/Motel $2,866 per 1,000 sq ft.
Nonresidential: Commercial/industrial $1301
per 1,000 sq ft; Hotel/Motel $222 per 1,000
sq ft.
Fund Balance July 1, 2021 $3,766,481 $751,143
Activity in 2021-22
Revenues
Fees Collected 311,065 51,809
Interest Earnings 57,233 12,321
Unrealized Gain/(Loss) Investments (305,444)(76,080)
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues $62,854 ($11,950)
Operating Transfer to Capital Projects Fund (18,800) -
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures ($18,800) -
----------------------------------------------------------- --------------------------------------------------------------
Ending Balance June 30, 2022 $3,810,535 $739,193
Reserves
Other Commitments/Appropriations - -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - - -------------------------------------------------------------------------------------------------------------------------Net Funds Available $3,810,535 $739,193
USE OF FEES:USE OF FEES:
Budget transfer in FY 2022 was made to Capital
Project fund for PG-19000-Park Restroom
Installation $13,300 and PG-18001-Dog Park
Installation and Renovation for $5,500.
FUTURE USE OF FEES:
Budgeted as part of FY23-27 CIP: PE-17005
Boulware Park $400k in FY23; PG-18001 Dog Parks
$145k in FY23, $150k in FY24 & FY26; PG-19000
Park Restroom Installation $337k in FY23, $350k in
FY24 & FY26; PE-08001 Rinconada Park
Improvements $400k in FY23; PF-23001 Roth
Building Rehabilitation $350k in FY23.
No expenditure of funds have been made from this
Fund in Fiscal Year 2022.
FUTURE USE OF FEES:
Budgeted as part of FY23-27 CIP: $1.65M shifted from
PE-08001 Rinconada Park Improvements to PF-23001
Roth Building Rehabilitation in FY23.
Residential & Non-Residential
Community Facilities Residential Housing
FUND Libraries In-Lieu Fund
Purpose and Authority
for Collection
Fees imposed on new residential and non-
residentual development approved after January
28, 2002 for Libraries.
Fees collected from ownership residential
developments of three or more units (including mixed
used with ownership in housing) in-lieu of providing
the required below-market rate units(s) to low and
moderate income households.
PAMC Ch. 16.58 PAMC Chapter 16.65
Amount of the Fee Residential: Single family $2,645 per unit;
Multi-family $1,956 per unit
(ADUs under 750 sq ft exempt)
Single family $85.07 per sq. ft. Single family
detached; $56.72 per sq. ft. single family
attached. Multi Family $56.72 per sq. ft.
condos.
Nonresidential: Commercial/industrial $776
per net new 1,000 sq ft.
Hotel/Motel $132 per net new 1,000 sq ft.
Fund Balance July 1, 2021 $971,303 $29,738,425
Activity in 2021-22
Revenues
Fees Collected 25,718 138,339
Property Rental 700
Interest Earnings 13,510 122,145
Unrealized Gain/(Loss) Investments (79,438)(497,098)
-------------------------------------------------------------------------------------------------------------------------
Total Revenues ($40,210)($235,914)
Expenditures
Salaries and Benefits - (34,894)
Liability Insurance - (855)
----------------------------------------------------------- --------------------------------------------------------------Total Expenditures - ($35,749)
-------------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2022 $931,093 $29,466,762
Reserves
Other Commitments/Appropriations - -
Reserve for Encumbrances - (178,090)
Reserve for Reappropriations - (3,000,000)
Reserve for Notes Receivable includes: - (23,810,893)
$375,000 for 3053 Emerson
$3,504,850 for Tree House Apts.
$747,734 for Sheridan Apts.
$2,285,026 for 801 Alma
$901,201 for Palo Alto Housing Project
$593,952 for 2811-2825 Alma St.
$203,561 for Colorado Park Housing
$149,968 for El Dorado Palace
$6,800,000 for Buena Vista Mobile Home Park
$8,249,601 for Wilton Ct.
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - (26,988,983)
-------------------------------------------------------------------------------------------------------------------------Net Funds Available $931,093 $2,477,779
USE OF FEES:USE OF FEES:
No expenditure of funds have been made from this
Fund in Fiscal Year 2022.
FUTURE USE OF FEES:
Budgeted as part of FY23-27 CIP: LB-21000 Library
Automated Material Handling $540k in FY23; PF-
23001 Roth Building Rehabilitation $300k in FY23.
Expenditures in Fiscal Year 2022 were $36K for
salaries and benefits. Reserve for Reappropriatons is
for Affordable Housing Project: 231 Grant Avenue
Affordable Housing Project.
Charleston-Arastradero Corridor
FUND Pedestrian and Bicyclist Safety Citywide Transportation
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
Fees collected from new development and
re-development within the Charleston-
Arastradero Corridor to provide for pedest-
rian and bicyclist safety improvements.
PAMC Ch. 16.60
Residential: $1,480 per residential unit
Commercial: $0.43 per sq ft (ADUs
exempt)
$8,572 each; per net new PM peak hour trip
Fund Balance July 1, 2021 $37,124 $2,281,870
Activity in 2021-22
Revenues
Fees Collected - 252,428
Interest Earnings 588 35,431
Unrealized Gain/(Loss) Investments (2,808)(175,459)
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues ($2,220)$112,400
Expenditures
Operating Transfer to Capital Projects Fund - (395,000)
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures - ($395,000)
----------------------------------------------------------- --------------------------------------------------------------
Ending Balance June 30, 2022 $34,904 $1,999,270
Reserves
Other Commitments/Appropriations - -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - -
----------------------------------------------------------- --------------------------------------------------------------
Net Funds Available $34,904 $1,999,270
USE OF FEES:USE OF FEES:
No expenses were been made from this fund in
Fiscal Year 2022.
Budget transfers of $395K to Capital Project Fund in
Fiscal Year 2022 was made for Traffic Signal and
Intelligent Transporation (PL-05030).
FUTURE USE OF FEES:
Budgeted as part of the FY23-27 CIP: PL-05030 Traffic
Signal and Intelligent Transportation System Upgrades
$395k annually
FUND New Public Safety Facilities General Government Facilities
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)PAMH Ch. 16.58
PAMC Ch. 16.58
Amount of the Fee Residential: Single family $1,175 per unit;
Multi-family $940 per unit
Residential: Single family $1,481 per unit;
Multi-family $1,184 per unit
(ADUs under 750 sq ft exempt)
Nonresidential: Commercial $657 per
1,000 sq ft. or fraction thereof; Industrial
$220 per 1,000 sq. ft. or fraction thereof;
Office/Institutional $876 per 1,000 sq ft or
fraction thereof.
Nonresidential: Commercial $826 per 1,000
sq ft. or fraction thereof; Industrial $275 per
1,000 sq. ft. or fraction thereof;
Office/Institutional $1,104 per 1,000 sq ft or
fraction thereof.
Fund Balance July 1, 2021 $44,123 $57,053
Activity in 2021-22
Revenues
Fees Collected 50,371 63,428
Interest Earnings 1,302 1,663
Unrealized Gain/(Loss) Investments (8,026)(10,214)
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues $43,647 $54,877
Expenditures - -
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures - -
----------------------------------------------------------- --------------------------------------------------------------
Ending Balance June 30, 2022 $87,770 $111,930
Reserves -
Other Commitments/Appropriations - -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - -
-------------------------------------------------------------------------------------------------------------------------
Net Funds Available $87,770 $111,930
USE OF FEES:USE OF FEES:
No expenditure of funds have been made from this
Fund in Fiscal Year 2022.
No expenditure of funds have been made from this
Fund in Fiscal Year 2022.
Residential Housing
FUND Impact Fee Fund
Purpose and Authority for clollection Fees imposed on all rental residential
developments (including mixed use with rental
housing) to offset the demand that the new market-
rate rental housing creates for low income and
moderate-income housing in the City.
PAMC Ch. 16.65
Amount of the Fee Single and Multi-Family: $22.69 per sq. ft.
apartment (rentals)
Fund Balance July 1, 2021 $894,756
Activity in 2021-22Revenues
Fees Collected 223,078
Interest Earnings 15,727
Unrealized Gain/(Loss) Investments (75,945)-----------------------------------------------------------
Total Revenues $162,860
Expenditures - -----------------------------------------------------------
Total Expenditures - -----------------------------------------------------------
Ending Balance June 30, 2022 $1,057,616
Reserves Other Commitments/Appropriations -
Reserve for Reappropriations (600,000)-----------------------------------------------------------
Total Reserves ($600,000)
-----------------------------------------------------------
Net Funds Available $457,616
USE OF FEES:
No expenditure of funds have been made from this
Fund in Fiscal Year 2022. Reseve for
Reappropriations is for Affordable Housing Loan
Agreement: 3705 El Camino Real (Wilton Court)
(INFORMATION ONLY)
FUND Public Art Fund Parkland Dedication
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
sq. ft. 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.
Fees on parkland dedication imposed on new
residential and non-residential development.
Govt Code Sec. 66477 (Quimby Act)
PAMC Ch. 16.61
Amount of the Fee 1% of first $120.25 million construction
valuation and 0.9% of construction
valuation for valuation in excess of
$120.25 million
Single Family: $69,483.47 per unit; Multi-
Family: $47,892.56 per unit. This applies
only to residential projects that require a
subdivision or pacel map. Land dedication 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.
Fund Balance July 1, 2021 $2,009,290 $5,915,748
Activity in 2021-22
Revenues
Fees Collected 144,400 591,289
Interest Earnings 32,355 74,277
Unrealized Gain/(Loss) Investments (158,436)(401,919)
Operating Transfer from General Fund 170,000
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues $188,319 $263,647
Expenditures
Salaries and benefits (227,003) -
Other Contract Services (42,080) -
Liability Insurance (2,816) -
Operating Transfer to Capital Projects Fund - (2,400,000)
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures ($271,899)($2,400,000)
----------------------------------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2022 $1,925,710 $3,779,395
Reserves
Other Commitments/Appropriations - -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - -
----------------------------------------------------------- --------------------------------------------------------------
Net Funds Available $1,925,710 $3,779,395
This fund is not subject to AB1600 requirements
and is listed only for information purposes.
This fund is not subject to AB1600 requirements and is
listed only for information purposes.
FUTURE USE OF FEES:
Budgeted as part of the FY23-27 CIP:
PE-17005 Boulware Park $1.1M in FY23; PE-08001
Rinconada Park Improvements $1.65M in FY23;
PE-18006 Byxbee Park Completion $450k in FY24.
(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. $3,750, 1 in. E-Meter $6,250, 1 1/2
in. E-Meter $18,850, 2 in. E-Meter
$31,250, 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. $8,425, 6 in. $18,250, 8 in. $30,950,
10in. $48,110
Sewer Capacity Charges: 4 in. connection
with 5/8 in Water Meter (WM) $5,250, 4 in
connection. with 1-in WM $10,500, 4 or 6
in. connection with 1-1/2 in WM $31,668, 6
in. connection with 2 in. WM $52,500, 6 in.
and larger connection with 4 in. or larger
WM by est. at $210/FU
Activity in 2021-22
Capacity Fees Collected
Water $123,175
Wastewater Collection $31,500
-----------------------------------------------------------
Total Capacity Fees Collected $154,675
USE OF FEES:
The fees are used exclusively for water and sewer
system improvements.