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Home My WebLink About0397.095I TO: FROM: :" ,;. . f) City of Palo Alto City Manager's Report HONORABLE CITY COUNCIL CITY MANAGER PEP ARTMENT: APMINISTRA TIVE SERVICES AGENDA DATE: SEPTEMBER %6, 1995 CMR:397:9S SlTBJECT: ANNUAL STATUS Rl.PORT ON DEVELOPERS' FEES AND ADOPTION OF FTNDL"IGS REGARDING Ul'lEXPENDED FEES REOlJEST This report lransmits information '" fiscal year 1994-95 00 !he status of development impact fees imposed and conected by !he City. State law (Government O:>de SecUoo 66(06) requires each local agency, which imposes kes upon development projects 10 defray !he costs of public facilities n:lated 10 !he projects, 10 prepare an annual report providing specific infoonatioo about \hose fees. This requirement is part oC the law commonly referred 10 as "AB 1600.- BW)MMfflDATlON Staff recommends that !he City Council a=lpt the n:port attacbed as Exhibit A. In additioo, staff recommends that the City C<luncil make t.'le findings attached 10 this reporl as Exhibit B ,,1th respeel to Ibe continued need '" certain funds in Ibe San Antonia.'West &ysOOn: Fund, which are planned 10 be used We the San Antonio On-Rrunp Project. POue)' IMPLICATIONS There are 00 policy implkations arising fi-om this report. Page I 0(4 • • < "' /.: ' •• c~~ • . -.. . ~-' f,:XECIITM SUMMARY AD 1600 (Government COOe Sectioos 66000 et. seq.) imposes several obEga500s upon h::a1 agencies with respecllo fees imposed 00 new development. This raw became effective on Januazy I, 1989. It codifie, the legal requirement that fees on new development have t.Oe proper "nexus' 10 any project on which they are imposed. In addition, AD 1600 impoSl".d certain accounting .nd reporting requiremenls with respect 10 the fees collecled. The fees, lOr accounting ptl!p<lSeS, must be segregated from the general funds of !he City and from other funds or accounts ~ootainin8 fees collected lOr other imp"" emaIls. Interest on each deveiopment fee fund 0< accounl must be credited tQ that fund or accoont and used only lOr the purposes lOr which 1.0., fees were co!Iected. Annually, after the close of the fiscal year, the agency "'hich collected the fees must make aVallable 10 the public the funowing inform.tioo regarding each fund or account o the beginD ing and encfmg balance for the fiscal year, o the amount of fees collected, interest earned, and other income in the fund, o the amount of expenditure lOr eacb public fa<:illly or imprQ\'ement made from the fund, o the amount of any refunds made due 10 inabilily 10 expend fees withi. tlle required time frame. This report must be presented to the legislative body. Exhibit "A", attached, fulfills this requirement. AS 1600 also prov;des tha1 five years alier coDecting • development fee subject to the law, I local agency sbaD make fin-fings "oce each subseque!lt fiscal )'ear with respect 10 any portion of the fee remaining unexpended or unrommitted. 11!e finding must identify the pwpose tQ which the fee is 10 be put and demonstrate I nexus between the fee and the purpose lOr which it was originally charged. l[!he agency is unable 10 make the findings lOr continued need lOr !he fee, !hen L'>e uncommitted porticn of the fee, and any accrued i.1terest, must be refunded 10 the current o,mer of!he developmenllOr which the ree was originally paid. The City of Palo Alto development fees c"vered by AS 1600, and documented in the attached Exhibit A, inclode the fo!)o ... ing: P Fa -'. ~ , o Stnr~rd Researcll Plrk Trim. Imp.c' F ... (FAMC CIl. 16.45) fee foe new OO!ltesidential development in the Page MiI1'El Camino Real Servke Commercial zane, to fund capacily impr",,.ements at eight intersections. o Sa. AIltolliolWest Blysbore Area Trlmc Impact Fees (P AMC a.. 16.46) Fee fer new llO!lreliidential developm<:nt in the Son AntoniolWest Baysbore Area 10 fund capacity im;lrovements ot fOur intersections. o Ho.sing Impact Fees Imposed 011 C.,mmercial DeveJopme. Is (P AMC a.. 16.47) fee 00 large commercial and industrial development to contn'bute to programs that increase the City's low income and moderate-income housing stock. ., ParkiD,III-Lin Fees for UDn'ersity A.e.ne Parking District (pAc'lfC a.. 16.57). Fee on new llOOlesidential development in the University A venue Parking Assessment District in lie\; .,f providing required parldng spaces. (There were DO parking in-lieu fees received as of June 30, 1995.) In-lieu fees are also paid 10 the City by residential developments in fulfillment of obligations under th( CiI)"s inclusioruuy zoning (Below-Market Rale Housing) prograrrL Wlule these fees 00 not ~ fit within the defirutioo of development fees subject 10 AB 16l'A repoI1ing requirements. s1afI bas included them in this report for infocmatiooal purposes. }be five-year review period established by AB 1600 oovers fees coTIected on or before June 30, 1990. Staff examined \he accounts to determlne if any deve10pmenl fees coliec1ed 00 or before that date remain unexpended or uDCommi!led. The only development impact fees collected 00 or before June 30, 1990 which remain lJDexpended are contained in the San Antonk>'West Bayshore Fund. Staff is recommencfmg l11al \he City Council make \he findings cootained in Exhibit B with respect to the continued need for these funds for \he San Antonio On-Ramp Project.. PogeJcl4 ~. -' . " --' J o FISCAL lMPACI Th= ore 00 fisCal impacts from the presentatioo of this reporl If the Cooncil does r>oI make the findings ~taiMd in Exhibit B, the development fees described lberein will be required to be refunded. lbls would have a fiscal impact of $254,050. ENVIRONMENTAl, ASSfSSMIJfI PresenIaIioo. of this annual report is no( ~ project under lI1e California Envlrorunental Quality Act; accoralDgly, DO environmental assessment is required. AtTACHMENTS Exhibit A Aunual Report on Development Fees lOr Period Enamg June 30, 1995 Exhibit B Findings Coocerning Cootinued Need Iiir Specified Developmenl Fees PREPARED BY: Linda Craig, Senior Accountant ~i' DEPARTMENJHEADAPPROYA1: (r. do, .~D EtnilyHarrison Deputy City Manage ninistrative 50 • CITY MANAGER AJ>PROY AL: I CC:nla I , , .- --W_'oan._ •• ....:6on tmpt'O'lltlmenlW _or __ onCl{~&"3QI9Q ~ ~ ur'ISfMInI or ur,com-.- NOTEo sc.ntcrd RMearoh PaN a camino Fpnd T ___ inposed or. MW Mf\~ deItJop-. 1NnI., .... Page Mi1J8 Crino R .... cs tone, 10 fI.Ind eapac.itr 1m~et1_ II eigN: ~ hd_ PMItC Ct.. 16,45 ~ 29)'90 • 1503.606 ==_=h.n.~.=_======- .,no 'No .... h .... bHn ~ 1m I\e Pa1cir4b-Utu Fl.lnd • r:l6I'3(),.I$ E~blA 10 ..... ". .. _ Annual ~ Oft D .... ioprnent F .... fo<_£~ ...... >O.1". ... Anionlol_ e.,.."'-Fond Tra!!'< "' __ "'posed ~ ro.ftj ro.Gr\l~ CfeIteIo9- ment r. .... Sa'! h\.tDfio/Wf!II/I. B~,e...,. to Ii.md etIPfIdIr iI'Tlprwemerns 81 four"dei'lU!'lecf ,,- FAMe CI'l16,~ .$294,' 15 • is,Sse • '310.1571 ""-=====--===--== .... '25JI,DSO ~'_ .I' eam __ ... .. .u..Fvnd F .. inpoeed' on let", com............ ~mert 1D coofrIbut. 10 JIRI'5lI'WftI I\aI: hcfeaae Ihe CIiI'" i'1c:omll and mo6erll&-boome hoUllif,g IICoct. PANe OJ. 16.47 39 .... 168,846 IHt.50" I SI.n8.~G7 ----.==~-~=-==~~~ .0flO Retllrflrlid.,,..,.... tn.u.a F""" F ... ~I'0111~ ill If; ..... at .... n:n ..... t. """ "'..-.srfle ... -_ .......... "'''''..., .......... --PA CoI"."' ...... " .... _oi-.. ,. P'oan'" PAMCCIl_,e '.- 24,.'42 • (B5.4OOJ • o EXHIBIT ~B" t1NDINGS WITH RESPECT TO UNSPENT IMPACT FEES IN SAN A.1IITONlO/Wl:S T BA YSHORE TRAfllC FIJl',D . __ f -_." WHEREAS, GcM:mrn<rt Code ",,;:tion 6600 I (d), effective JanlW)' I, 1989, leq-~"'" the City 10 make certain finding> once eac~ fiscal year wilh r .. pect 10 development fees collected after that date which remain unexpended oc .lflC<llTlJTlitted five 0< more years after deposit 0( such fees; and WHEREAS. the City bas conected development fees as aUIllorized under G..pt ... 16.46 0( the Palo Alto Murucipal Code for the purpose 0( fundi11g transportation <apacity improve:nents III =1ain designated intersections, and has segregated those f.,.. in • separate fund; and WHEREAS, lhe sum 0( 5254,050, repre>enting fees collected PUTSUa.ot to Chapt".. 16.41'> since JaDlW)' I, 1989, toge1her with accrued interest tberean, remains unexpended live or more year. after deposit 0( the fees f1he San Antonio fe<s"); and WHEREAS, the City eouo<:iI desires 10 make the finomgs required by I.a w wit. respect to su<:h fe<s; NOW, J1IEREFORE. THE CITY COUNCIL does lind as ronaw.: I. The San Antonio fees were conect.d pursuanllo Chapeer 16.45 of the Palo AJto Municipal Code, to be used solely lOr the purpose 0( ~"ncf",g transportation capacity improvements. at designated intersections. '9IhK;'h :are ad\;eTStly impacted from new nOD.-resjdent~~ c!e\'elopment in the San AntoniotWest Bayshore Area ("Area"} , ( . ;-: &, The need h d"te inprovements for which fr.e San ~,""1lonio fees were conected was identified in an En,ironmental Impact lIeport ("EIR") certified by t. ... City Council on January 13, 1986. 1. C!tapt<s 16.46 idmti~es the specific improvements 10 be coostructed with the """ c:oIIected thereunJ..-, which include. right-tura lane 00 westbound Charleston at San Antonio, llignalized intersection at the site oCthe FOI"d Aerospace dffi.'~'ay. and intercOMectlons of traffic signals in the Area, or-ahernatlve improvements in the Area as determined. by the Chief Transportation Official, subjea 10 the approval o(t.'te City Coo"C~. 4. The State Department 0( TranspOrtatioo (Caltrans) has plans fu<. new on- '""" and ramp metering improvements III the San Antonio Road junction wilh Highway 101. This prqea has bel.! planned fa< over len years, and was recently resubntittcd 10 tne City fOr review and approval This Caltran. project is projected to be constructed in 1996 and'er 1997_ 5. The San AntoruDI'West Baysbore improvements oescn'bed in OIaptet 16_46 S 10 be constnJcted together lIoith. or after tlle Cahrans on-ra:np impro--.lements, because of rue fleecf , , I • • <:...,\'1,.;: ..-' :.., '" .~~ . . ,,-' ,- to coonrmat~ construction projects and assess the imp.acts of the cew on-ramp prior to "'0''''''''''''_ of the City improvement.. Accordingly, the City!Jas be .. unahre to undert3k. the improvements IS ofthi. time; and the San AntoniQ fees r.",.ain unspent. 6. A TOIlSOIlable relationship e><ists betw .. n the San Antoni., fees and the purpose fix wbich they were conected, in that the fees were imposed UPOD new lIOO-residential ~"'Jts iI \fie Area. Those projects, acconrlllg to the FIR" cumulativcly ger.eal. traffic which . ~ impaa the intersections designated in ~ EIR. 7. The San Antoni., fees ..;n be used s<>lely IOC purpose of constructi."S the IBfIic imp<ovemems identified in Chapter 15.45, as req"ired uoder the COOe. 8. The San A.'l!onio r<es continue to be reqwed i.~ order !o fund the improvements specified in Chapter 16.46, in L~l the improvements have not yet been constructed fur the reasons deocril>ed above; and the wst of tlJe necessary improvements is to be spread propartjc:Jmtel among dle new non-residential users which contn"bute the tra.4fic gene..'"3bng t1le need IOC the improvements. 9. Based on t1te foregoing. a continuing need for the Sao Antonio fees bas been . demonstrated . > ".