HomeMy WebLinkAboutStaff Report 2211-0400CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, January 23, 2023
Council Chambers & Hybrid
5:00 PM
AGENDA ITEM COVER PAGE
5.Review and Acceptance of Annual Status Report on Development Impact Fees for Fiscal
Year 2022 and Adoption of a Resolution Making Statutory Findings under Govt. Code
section 66001
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: CONSENT REPORT
Lead Department: Administrative Services
Meeting Date: January 23, 2023
TITLE
Accept Annual Status Report on Development Impact Fees for Fiscal Year 2022 and Adopt a
Resolution Making Statutory Findings for Certain Funds
EXECUTIVE SUMMARY
This report contains information on the City of Palo Alto’s Development Impact Fees for the Fiscal
Year (FY) 2021-2022. This report meets the annual reporting requirements in Government Code
section 66006.
RECOMMENDATION
Staff recommends that the City Council review and accept the Annual Report on Development
Impact Fees for the period ending June 30, 2022 (Attachment A) and adopt the resolution making
statutory findings for certain development impact fee funds (Attachment B).
BACKGROUND
State law (Government Code Section 66006) requires that 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
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year, the agency that collected the fees must make available to the public the following
information regarding each fund or account:
Brief description of the type of fee in the fund.
Amount of the fee.
Beginning and ending balance in the fund.
Amount of fees collected, and interest earned.
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.
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.
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.
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 Attachment A only was made available to the public and included in
the packet for the December 5, 2022, 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
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may be required to refund to property owners a prorated portion of the monies collected for
that project and any interest earned on those funds.
ANALYSIS
The City of Palo Alto development fees covered by AB 1600, and documented in Attachment A,
include the following:
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. City ceased
collecting effective fiscal year 2020.
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. City ceased collecting effective fiscal year 2020.
Housing impact fees imposed on commercial developments (PAMC Ch. 16.65): Fee on
commercial and industrial development to contribute to offset the demand that new
jobs create for low income and moderate-income in the City.
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, libraries, public safety, and general government.
Charleston-Arastradero Corridor pedestrian and bicyclist safety fees (PAMC Ch. 16.60):
Fee on new development and re-development within the Charleston-Arastradero
Corridor to provide for pedestrian and bicyclist improvements.
Citywide Transportation impact fees (PAMC Ch 16.59): Fee on development in all parts
of the City to fund transportation projects and programs to reduce congestion.
New Public Safety facilities (PAMH Ch. 16.58): Fee on residential and non-residential
development to fund police and fire facilities, including fire apparatus and vehicles.
General Government facilities: (PAMH Ch. 16.58) – Fee on residential and non-residential
development to fund facilities associated with municipal administration.
Residential (Rental) impact fees (PAMC Ch. 16.65) Fee on rental residential
developments (including mixed use with rental housing) to offset the demand that new
market-rate rental housing creates for low and moderate-income housing in the City.
AB 1600 requires the City to make certain findings with respect to the fees that remain
unexpended in the fifth fiscal year following the first deposit into the fund, and every five years
thereafter. There are four categories of fees that require statutory findings in FY2021-22. These
proposed findings are contained in Attachment B.
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The Community Facilities (Parks Impact Fee) Fund has an unexpended balance of
$3,810,535 that was collected in FY 2022 and prior.
The Community Facilities Community Centers Fund has an unexpended balance of
$739,193 that was collected in FY 2022 and prior.
The Community Facilities (Library Impact Fee) Fund has an unexpended balance of
$931,093 that was collected in FY 2022 and prior.
The Charleston-Arastradero Corridor Fund has an unexpended balance of $34,904 that
was collected in FY 2022 and prior.
In addition to development fee funds that are required to be reported under AB 1600, the
following funds are reported for information purposes only and are not required to be reported
under AB 1600:
Public Art Fund (PAMC Ch. 16.61): Fees imposed on new commercial developments
(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.
University Avenue Parking In-Lieu Fund (PAMC Ch. 16.57): Fees collected from non-
residential development within the University Avenue Parking Assessment District, in lieu
of providing the required number of parking spaces.
Residential housing in-lieu fees (PAMC Ch. 16.65): Fee on residential developments in-
lieu of providing required below-market rate units to low- and moderate-income
households.
Parkland Dedication (CA Government Code Section 66477-Quimby Act): Fees on parkland
dedication imposed on new residential and non-residential development.
Water and Wastewater Collection (California Government Code Section 66000): Capacity
fees charged to developers that are adding load to the water and sewer systems effective
July 1, 2005.
RESOURCE IMPACT
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These various funds are reviewed annually for any unallocated balances and the nexus of
appropriate projects annually as part of the development of the City’s five-year capital
improvement plan.
If the council does not make the findings contained in Attachment B, the development fees
described therein might be required to be refunded. This would have fiscal impact of $5,515,725.
STAKEHOLDER ENGAGEMENT
This report has been prepared by the Accounting Division in Administrative Services and
reviewed by partner departments including the City Attorney’s Office and the Planning and
Development Services Department.
ENVIRONMENTAL REVIEW
This is not a project for purposes of the California Environmental Quality Act.
ATTACHMENTS
Attachment A: Development Impact Fees FY 22
Attachment B: Resolution Making Findings Regarding Continuing Need for Unexpended
Development Fees
APPROVED BY:
Kiely Nose, Administrative Services Director
Report #: 2211-0400
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 non-residential development in the non-residential 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
FUND Impact Fee Fund General Government Facilities
Purpose and Authority Fees imposed on commercial and industrial
Fees imposed on residential and non-residential
development to fund facilities associated with
municipal administration.
for Collection development to offset the demand that
new jobs create for low and moderate-
income housing in the City.
PAMC Ch.16.65 PAMC Ch. 16.58
Amount of the Fee
Hotel / Retail / Other Non-Residential:
$23.11 per sq. ft.
Office/R&D: $68.50 per sq. ft.
Residential: Single family $1,481 per unit;
Multi-family $1,184 per unit
(ADUs under 750 sq. ft. exempt);
Non-residential: 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 $25,967,219 $57,053
Activity in 2021-22
Revenues
Fees Collected 1,428,224 63,428
Interest Earnings 54,217 1,663
Unrealized Gain/(Loss) Investments (300,408)(10,214)
-------------------------------------------------------------------------------------------------------------------------
Total Revenues 1,182,033 54,877
Expenditures
Salaries and Benefit (34,894) -
Liability Insurance (855) -
-------------------------------------------------------------------------------------------------------------------------
Total Expenditures (35,749) -
-------------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2022 $27,113,503 $111,930
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 $111,930
USE OF FEES: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).
No expenditure of funds have been made from this
Fund in Fiscal Year 2022.
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)
Non-residential: Commercial/Industrial
$16,837 per net new 1,000 sq ft;
Hotel/Motel $2,866 per 1,000 sq ft.
Non-residential: 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 Impact Fee Fund
Purpose and Authority
for Collection
Fees imposed on new residential and non-
residentual development approved after January
28, 2002 for Libraries.
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. 16.58 PAMC Ch. 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 and Multi-Family: $22.69 per sq. ft.
apartment (rentals)
Non-residential: 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 $894,756
Activity in 2021-22
Revenues
Fees Collected 25,718 223,078
Interest Earnings 13,510 15,727
Unrealized Gain/(Loss) Investments (79,438)(75,945)-------------------------------------------------------------------------------------------------------------------------
Total Revenues ($40,210)$162,860
Expenditures
-------------------------------------------------------------------------------------------------------------------------Total Expenditures - $0
-------------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2022 $931,093 $1,057,616
Reserves
Other Commitments/Appropriations - -
Reserve for Reappropriations - (600,000)
-------------------------------------------------------------------------------------------------------------------------
Total Reserves - (600,000)
-------------------------------------------------------------------------------------------------------------------------Net Funds Available $931,093 $457,616
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.
No expenditures of funds have been made from this
Fund in Fiscal Year 2022. Reserve for
Reappropriations is for Affordable Housing Loan
Agreement: 3705 El Camino Real(Wilton Court).
Charleston-Arastradero Corridor
FUND Pedestrian and Bicyclist Safety Citywide Transportation
Purpose and Authority Fees collected from new development and Transportation impact fees imposed
for Collection re-development within the Charleston-on new development in all parts of the
Arastradero Corridor to provide for pedest-City to fund congestion reduction
rian and bicyclist safety improvements.projects.
PAMC Ch. 16.60 PAMC Ch. 16.59
Amount of the Fee 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
Purpose and Authority Fees imposed on residential and
for Collection non-residential development to fund
police and fire facilities (including fire
apparatus and vehicles)
PAMC Ch. 16.58
Amount of the Fee Residential: Single family $1,175 per unit;
Multi-family $940 per unit
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.
Fund Balance July 1, 2021 $44,123
Activity in 2021-22
Revenues
Fees Collected 50,371
Interest Earnings 1,302
Unrealized Gain/(Loss) Investments (8,026)
-----------------------------------------------------------
Total Revenues $43,647
Expenditures -
-----------------------------------------------------------
Total Expenditures -
-----------------------------------------------------------
Ending Balance June 30, 2022 $87,770
Reserves
Other Commitments/Appropriations -
-----------------------------------------------------------
Total Reserves -
-----------------------------------------------------------
Net Funds Available $87,770
USE OF FEES:
No expenditure of funds have been made from this
Fund in Fiscal Year 2022.
(INFORMATION ONLY)(INFORMATION ONLY)
Residential Housing
FUND In-Lieu Fund Parkland Dedication
Purpose and Authority for clollection 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 unit(s) to
low and moderate income households.
Fees on parkland dedication imposed on new
residential and non-residential development.
PAMC Ch. 16.65 Govt Code Sec. 66477 (Quimby Act)
Amount of the Fee
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.
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 parcel 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 $29,738,425 $5,915,748
Activity in 2021-22
Revenues
Fees Collected 138,339 591,289
Property Rental 700
Interest Earnings 122,145 74,277
Unrealized Gain/(Loss) Investments (497,098)(401,919)-------------------------------------------------------------------------------------------------------------------------
Total Revenues ($235,914)$263,647
Expenditures -
Salaries and Benefits (34,894)
Liability Insurance (855)
Operating Transfer to Capital Projects Fund (2,400,000)-------------------------------------------------------------------------------------------------------------------------
Total Expenditures ($35,749)($2,400,000)-------------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2022 $29,466,762 $3,779,395
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 $2,477,779 $3,779,395
USE OF FEES:USE OF FEES:
This fund is not subject to AB1600 requirements
and is listed only for information purposes.
Expenditures in the Fiscal Year 2022 were $36K for
salaries and benefits. Reserve for Reappropriations
is for Affordable Housing Project: 231 Grant
Avenue Affordable Housing Project.
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-08001 Rinconada Park Improvements $1.65M in
FY23; PE-18006 Byxbee Park Completion $1.55M in
FY24.
(INFORMATION ONLY)(INFORMATION ONLY)
University Avenue Parking
FUND Public Art Fund In-Lieu 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
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 collected from non-residential development
within the University Ave. Parking Assessment District
in lieu of providing the required number of parking
spaces.
PAMC Ch. 16.61 PAMC Ch. 16.57
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
$115,404.00 per space
Fund Balance July 1, 2021 $2,009,290 $6,424,611
Activity in 2021-22
Revenues
Fees Collected 144,400
Interest Earnings 32,355 101,582
Unrealized Gain/(Loss) Investments (158,436)(507,159)
Operating Transfer from General Fund 170,000
-------------------------------------------------------------------------------------------------------------------------
Total Revenues $188,319 ($405,577)
Expenditures
Salaries and benefits (227,003) -
Other Contract Services (42,080) -
Liability Insurance (2,816) -
Operating Transfer to Capital Projects Fund - -
-------------------------------------------------------------------------------------------------------------------------
Total Expenditures ($271,899) -
-------------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2022 $1,925,710 $6,019,034
Reserves
Other Commitments/Appropriations - -
-------------------------------------------------------------------------------------------------------------------------
Total Reserves - -
-------------------------------------------------------------------------------------------------------------------------
Net Funds Available $1,925,710 6,019,034.00
USE OF FEES: USE OF FEES
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.
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).
(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.
*NOT YET APPROVED*
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261_20221128_ts24
Resolution No. _____
Resolution of the Council of the City of Palo Alto Making Findings
Regarding Continuing Need for Unexpended Development Fees
R E C I T A L S
A. Government Code Section 66001(d) requires the City to make certain
findings with respect to fees that remain unexpended in the fifth fiscal year following the
first deposit into the account or fund, and every five years thereafter; and
B. As authorized under Chapter 16.58 of the Palo Alto Municipal Code, the
City has collected a fee known as the “Parks Impact Fee” for the purpose of funding
acquisition of land and improvements for neighborhood and district parks; and
C. The sum of $3,810,535 represents the most recent audited total of fees
collected pursuant to the Parks Impact Fee that remain unexpended, together with
accrued interest thereon (“unexpended Parks Impact Fee Funds”); and
D. As authorized under Chapter 16.58 of the Palo Alto Municipal Code, the
City has collected a fee known as the “Community Center Impact Fee” for the purpose of
funding development and improvements to community centers; and
E. The sum of $739,193 represents the most recent audited total of fees
collected pursuant to the Community Center Impact Fee that remain unexpended,
together with accrued interest thereon (“unexpended Community Center Impact Fee
Funds”); and
F. As authorized under Chapter 16.58 of the Palo Alto Municipal Code, the
City has collected a fee known as the “Library Impact Fee” for the purpose of funding
development and improvements to libraries; and
G. The sum of $931,093 represents the most recent audited total of fees
collected pursuant to the Library Impact Fee that remain unexpended, together with
accrued interest thereon (“the unexpended Library Impact Fee funds”); and
H. As authorized under Chapter 16.60 of the Palo Alto Municipal Code, the
City has collected a fee known as the “Charleston-Arastradero Corridor Pedestrian and
Bicyclist Safety Fee” for the purpose of funding pedestrian and bicyclist safety
improvements; and
I. The sum of $34,904 represents the most recent audited total of fees
collected pursuant to the Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety
*NOT YET APPROVED*
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Fee that remain unexpended, together with accrued interest thereon (“unexpended
Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety Fee funds”).
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council makes the following findings:
Parks Impact Fee funds
1. The unexpended Parks Impact Fee funds were collected pursuant to
Chapter 16.58 of the Palo Alto Municipal Code, to be used solely for the purpose of
funding acquisition of land and improvements for neighborhood and district parks.
2. The City plans to spend the unexpended Parks Impact Fee funds in the
amount of $3,810,535 in part to complete several park improvements scheduled in the
Fiscal Year 2023-2027 Five Year Capital Improvement Plan.
3. The unexpended Parks Impact Fee funds are anticipated to be transferred
as provided in the Fiscal Year 2023-2027 Five Year Capital Improvement Plan. Other
sources of funding for these projects include the City’s Capital Improvement Fund,
Community Center Impact Fee Fund, Library Development Impact Fee Fund, Stanford
University Medical Center Fund, revenue from other agencies or organizations, as
specifically detailed in the FY 2023-2027 Five Year Capital Improvement Plan. Additional
unexpended Parks Impact Fee funds are anticipated to be used to implement the Parks,
Trails, Natural Open Space and Recreation Master Plan (adopted 2017), including to
develop the empty 10-acre site adjacent to the Baylands into park uses.
4. The relationship between the fee collected and the purpose for which it is
charged is demonstrated in the City of Palo Alto Park, Community Center, and Library
Development Impact Fee Justification Study, dated January 15, 2021 and approved by the
City Council on April 12, 2021.
Community Center Impact Fee funds
5. The unexpended Community Center Impact Fee funds were collected
pursuant to Chapter 16.58 of the Palo Alto Municipal Code, to be used solely for the
purpose of funding development and improvements to community centers.
6. The City plans to spend the unexpended Community Center Impact Fee
funds in the amount of $739,193 to complete community center improvements
scheduled in the Fiscal Year 2023-2027 Five Year Capital Improvement Plan; namely the
Roth Building Rehabilitation Phase I.
*NOT YET APPROVED*
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7. The unexpended Community Center Impact Fee funds are anticipated to
be transferred as provided in the Fiscal Year 2023-2027 Five Year Capital Improvement
Plan. Other sources of funding for this project include the City’s Capital Improvement
Fund, Parks Impact Fee Fund, Library Development Impact Fee Fund, Stanford University
Medical Center Fund, and revenue from other agencies or organizations, as specifically
detailed in the FY 2023-2027 Five Year Capital Improvement Plan.
8. The relationship between the fee collected and the purpose for which it is
charged is demonstrated in the City of Palo Alto Park, Community Center, and Library
Development Impact Fee Justification Study, dated January 15, 2021 and approved by the
City Council on April 12, 2021.
Library Impact Fee funds
9. The unexpended Library Impact Fee funds were collected pursuant to
Chapter 16.58 of the Palo Alto Municipal Code, to be used solely for the purpose of
funding development and improvements to libraries.
10. The City plans to spend the unexpended Library Impact Fee funds in the
amount of $931,093 to (1) fund purchase and installation of higher-capacity book
processing machines (Automated Materials Handling machines) to facilitate expanded
book returns and sorting at additional library branches; (2) fund the Roth Building
Rehabilitation Phase 1 to support library archives; and (3) fund purchase and installation
of vending machines to dispense Library volumes to patrons.
11. The unexpended Library Impact Fee funds are anticipated to be
transferred as provided in the Fiscal Year 2023-2027 Five Year Capital Improvement Plan.
Additional allocations are expected in FY24 and FY25 as the library is in the process of
designing the deployment of AMH machines at its Children’s Library as well as analyzing
the use of AMH machines across the rest of the Library system. The balance of funds is
expected to be used to install vending machines to dispense Library volumes to patrons.
The other sources of funding for these projects are the City’s Capital Improvement Fund.
12. The relationship between the fee collected and the purpose for which it is
charged is demonstrated in the City of Palo Alto Park, Community Center, and Library
Development Impact Fee Justification Study, dated January 15, 2021 and approved by the
City Council on April 12, 2021.
Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety Fee funds
13. The unexpended Charleston-Arastradero Corridor Pedestrian and Bicyclist
Safety Fee funds were collected pursuant to Chapter 16.60 of the Palo Alto Municipal
Code, to be used solely for the purpose of funding pedestrian and bicyclist safety
improvements, as defined in Section 16. of the Palo Alto Municipal Code.
*NOT YET APPROVED*
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14. The City plans to spend the unexpended Charleston-Arastradero Corridor
Pedestrian and Bicyclist Safety Fee funds in the amount of $34,904 on the
Charleston/Arastradero Corridor Project.
15. The unexpended Charleston-Arastradero Corridor Pedestrian and Bicyclist
Safety Fee funds are anticipated to be transferred in FY23 or FY24. Other funding sources
for this project include the Capital Improvement Fund, Stanford University Medical Center
Fund, Gas Tax Fund, and grants from the State of California, as detailed in the FY23, FY22,
and prior years’ Capital Improvement Budgets.
16. The relationship between the fee collected and the purpose for which it is
charged is demonstrated in the City of Palo Alto Charleston-Arastradero Corridor
Pedestrian and Bicyclist Safety Impact fee Nexus Study of 2005.
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SECTION 2. The Council finds that this is not a project under the California
Environmental Quality Act and, therefore, no environmental impact assessment is
necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
______________________________ ______________________________
City Clerk Mayor
APPROVED AS TO FORM:
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Assistant City Attorney City Manager
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Director of Administrative Services
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Director of Community Services
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Director of Libraries
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Director of Public Works