Resolution/AB1600 Amended Report on Development Impact Fees FYE June 30, 2021 Page 1 of 5 Rev: 11/22/21
RESOLUTION NO. _____
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA,
ACCEPTING THE AMENDED AB1600 REPORT ON
DEVELOPMENT IMPACT FEES FOR FISCAL YEAR ENDED
JUNE 30, 2021 AND MAKING FINDINGS REGARDING THE
CONTINUING NEED FOR UNEXPENDED BALANCES OF
IMPACT FEES AS OF JUNE 30, 2021
BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
WHEREAS, Government Code Sections 66000 and following (commonly known as, and referenced herein as, “AB1600”) regulate the imposition, collection, maintenance, expenditure and reporting of impact fees imposed on developers for the purpose of defraying costs of public facilities;
WHEREAS, the City of Santa Clara (“City”) has identified seven (7) impact fees collected from developers that are subject to AB1600’s requirements. Those funds are the Traffic Mitigation Fee (Funds 123/533), the Sanitary Sewer Outlet Fee (Fund 594), the Sanitary Sewer Connection Fee (Fund 594), the Sanitary Sewer Conveyance Fee (Fund 594), the Storm Drain Fee (Fund 535), the Parks Mitigation Fee (Fund 532) and the Affordable Housing Fee (Fund 565);
WHEREAS, in accordance with the provisions of AB1600, the City has set up separate special revenue funds for each type of fee, crediting earned interest to those funds, and spending the accumulated fees and related interest on appropriate expenditures; WHEREAS, the City has prepared an annual report for fiscal year 2020-21 in accordance with AB1600, “AB1600 Report on Development Impact Fees for Fiscal Year ended June 30, 2021,” reflecting the beginning and ending balances of each separate fund containing impact fees; the amount of fees collected and the interest earned for the year; the amount of expenditures and refunds made in the year; the percentage of expenditures paid for by fees; and a description of the type of fees. The amount of each of these development impact fees for FY 2020-21 is reflected in the City’s Municipal Fee Schedule, previously adopted by this Council; Resolution/AB1600 Amended Report on Development Impact Fees FYE June 30, 2021 Page 2 of 5 Rev: 11/22/21
WHEREAS, a copy of the annual report has been on file and available for review in the City Clerk’s Office and the Finance Department at Santa Clara City Hall, and online at Santaclaraca.gov/Finance since January 14, 2022;
WHEREAS, the City has prepared an amended annual report for fiscal year 2020-21 in accordance with AB1600, “Amended AB1600 Report on Development Impact Fees for Fiscal Year ended June 30, 2021,” to include the Sanitary Sewer Conveyance Fee that had originally been omitted while master planning efforts were underway.
WHEREAS, a copy of the amended annual report has been on file and available for review in the City Clerk’s Office and the Finance Department at Santa Clara City Hall, and online at Santaclaraca.gov/Finance since July 29, 2022;
WHEREAS, AB1600 requires the City to make specific findings every five (5) years with respect to any portion of the fees remaining unexpended or uncommitted after a period of five (5) years to 1) identify the purpose to which the fee is to be put, 2) demonstrate a reasonable relationship between the fee and the purpose for which it was charged, 3) identify all sources and amounts of funding anticipated to complete financing of the improvement, and 4) designate the approximate date on which such funding will be available; WHEREAS, the Traffic Mitigation Impact Fee, which was established for the purpose of providing a source of funding for traffic improvements, contains some fee revenues which were received more than five (5) years ago. The sum of $3,371,224 representing fees and accrued interest collected for traffic mitigation remains unexpended five (5) or more years after deposit of the fees;
WHEREAS, the Storm Drain Fee, which was established for the purpose of mitigating storm drainage that results directly or indirectly from development projects, contains some fee revenues which were received more than five (5) years ago. The sum of $240,903 representing fees and accrued interest collected for storm drainage mitigation remains unexpended five (5) or more years after deposit of the fees;
Resolution/AB1600 Amended Report on Development Impact Fees FYE June 30, 2021 Page 3 of 5 Rev: 11/22/21
WHEREAS, the Sanitary Sewer Conveyance Fee, which was established for the purpose of mitigating sanitary sewer conveyance load that results directly or indirectly from development projects, contains some fee revenues which were received more than five (5) years ago. The sum of $7,275,439 representing fees and accrued interest collected for sewer conveyance mitigation remains unexpended five (5) or more years after deposit of the fees; WHEREAS, the City desires to make the findings required by law with respect to these unexpended fees.
NOW THEREFORE, BE IT FURTHER RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. That the City Council hereby accepts the attached Amended AB1600 Report on Development Impact Fees for Fiscal Year ended June 30, 2021 (“Amended Report”), and makes the following findings:
A. The Traffic Mitigation Impact Fee revenues are to be used to construct traffic improvements needed by new development. The amount of the fee for different land use types is proportionate to the need for traffic improvements generated by such land use types. This fee is still necessary as several projects are tied to larger development projects that have yet to occur. These development projects are still anticipated to take place based on the City’s General Plan. The traffic mitigation fee is set at a lower rate than justified, and as a result projects are underfunded. This has also slowed down progress on projects resulting in some project costs increasing. Periodically, as the City updates the General Plan and as new development occurs, additional improvement projects are identified and added to the Traffic Mitigation Fee Project List.
B. The portion of the $10,505,590 fund balance in the Traffic Mitigation Fund that was at least five (5) years old as of June 30, 2021, totals $3,371,24. The City will use the entire fund balance for the projects identified in Exhibit A of the Amended Report which are programmed in the Capital Improvement Plan. The Traffic Mitigation Fund has projects Resolution/AB1600 Amended Report on Development Impact Fees FYE June 30, 2021 Page 4 of 5 Rev: 11/22/21
scheduled in the current Capital Improvement Plan for the next five (5) years and depends upon additional fees and interest each year. Projects identified in Exhibit A which are funded at less than 100% with Traffic Mitigation Impact fees are funded by other sources totaling $11,786,101.
Remaining appropriations totaling $8,316,545 from the other sources are as follows:
Reimbursable Grants $440,232; Bonds Proceeds $1,484,476; Curb Sidewalk Fee $376,003, Measure B $271,626, Electric Utility Contribution $430,553; Regional Traffic Mitigation Fee $707,720, General Fund $1,400,000, and Developer Contributions $3,205,935. All payments have been received and are available except the Reimbursable Grants. The City expects to receive Grant repayments in fiscal year 2020-21.
C. The Storm Drain Impact Fee revenues are to be used to mitigate City storm drainage that results either directly or indirectly from development projects. The amount of the fee is proportionate to the need for storm drainage improvements generated by development projects. This fee is still necessary as several storm drain projects are tied to larger development projects that have yet to occur. These development projects are still anticipated to take place based on the City’s General Plan. As new development occurs, additional improvement projects are identified and added to the Storm Drain Impact Fee Project List.
D. The portion of the $650,435 fund balance in the Storm Drain Impact Fee Fund that was at least five (5) years old as of June 30, 2021, totals $240,903. The City will use the entire fund balance for the projects identified in Exhibit A of the Amended Report which are programmed in the Capital Improvement Plan. The Storm Drain Impact Fee Fund has projects scheduled in the current Capital Improvement Plan for the next five (5) years and depends upon additional fees and interest each year. The project identified in Exhibit A which is funded at less than 100% with Storm Drain Impact Fees is funded by the General Fund Capital Project Reserve (CPR) totaling $1,239,577. The remaining appropriation from the CPR is $564,519.
E. The Sanitary Sewer Conveyance Fee was adopted in 2006-07 to address Sewer Main capacity deficiencies resulting from increased development.
Resolution/AB1600 Amended Report on Development Impact Fees FYE June 30, 2021 Page 5 of 5 Rev: 11/22/21
F. The portion of the $39,419,207 fund balance in the Sanitary Sewer Conveyance Fees Fund that was at least five (5) years old as of June 30, 2021, totals $7,275,439. The City will use the entire fund balance for the projects identified in Exhibit A of the Amended Report which are programmed in the Capital Improvement Plan. The Sanitary Sewer Conveyance Fee has projects scheduled in the current Capital Improvement Plan for the next five (5) years and depends upon additional fees and interest each year. These projects are entirely funded by this fee and do not receive funding from any other sources.
2. Effective date. This resolution shall become effective immediately.
I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED
AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A REGULAR MEETING THEREOF HELD ON THE 16TH DAY OF AUGUST 2022, BY THE FOLLOWING VOTE:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
ATTEST: ______________________________
NORA PIMENTEL
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
Attachments incorporated by reference:
1. Amended AB1600 Report on Development Impact Fees FYE June 30, 2021
1 AMENDED
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2021
BACKGROUND
Cities and counties often charge fees on new develo pment to fund public improvements, public amenities and public services. For example, Traffic Mitigati on Fees are used to fund transit facilities, street s, bike lanes and sidewalks. These fees are commonly known as development impact fees (Developer Fees). In 1989, the State Legislature passed Assembly Bill 16 00 (AB1600) which added Section 66000, et seq., to the California Government Code. The chapter sets f orth a number of requirements that local agencies must follow if they are to collect fees from develo pers to defray the cost of the construction of publ ic facilities related to development projects. Govern ment Code Sections 66000-66025 apply to developer fees established, increased or imposed on or after January 1, 1989, and generally sets forth four broa d requirements:
1. A local jurisdiction must follow the process set fo rth in the bill and make certain determinations regarding the purpose and use of the fees and to es tablish a "nexus" or connection between a development project or class of project and the public improvement being financed with the fee.
2. The fee revenue must be segregated from the General Fund in order to avoid commingling of public improvement fees and the General Fund.
3. If a local jurisdiction has had possession of a dev eloper fee for five years or more and has not committed that money to a project or actually spent that money, then it must make findings describing the continuing need for that money each fiscal year after the five years have expired.
4. If a local jurisdiction cannot make the findings re quired under paragraph 3, then the city or county must go through a refund procedure.
The Traffic Mitigation Fee, Sanitary Sewer Outlet F ee, Sanitary Sewer Connection Fee, Sanitary Sewer Conveyance Fee, Storm Drain Fee, Parks Mitigation F ee, and Affordable Housing Fees that the City of Santa Clara (City) collects qualify as Development Impact Fees and therefore must comply with the above referenced Government Code Sections. The amo unt of each of these development impact fees for fiscal year 2020-21 is reflected in the City’s Muni cipal Fee Schedule, previously adopted by the City Council. The schedule is available at:
https://www.santaclaraca.gov/home/showpublisheddocument/67706/637257428199370000 . As required by law, these fees are segregated and accounted for as Special Revenue Funds. Government Code Section 66001 requires the City to make available t o the public certain information regarding these fe es for each fund within 180 days after the end of each fiscal year. Accordingly, the following report is presented to the City Council for review.
The report is amended to reflect the Sanitary Sewer Conveyance Fee omitted in the original report approved by Council in February 2022 as the Sanitar y Sewer Master Plan efforts were underway. The activities summary for the Sanitary Sewer Conveyanc e Fee from fiscal year 2016-17 through 2020-21 is on page 4 and the projects programmed for the impact fees held over five years are listed on page 11.
2 ANALYSIS
Using the accounting method known as first in, first out (FIFO), which means the first revenue received is assumed to be the first spent, staff analyzed the a nnual balances at the end of fiscal year 2020-21 to determine what portion, if any, of the balance was five or more years old. If a balance is more than five years old, a review of previously identified projec ts is undertaken to determine if any developer fees collected need to be refunded.
Many of the identified projects are already underwa y, and the City has appropriated funds for these projects as noted in the City’s FY2020-21and 2021-2 2 Biennial CIP Budget Book. The book is available at
https://www.santaclaraca.gov/home/showpublisheddocument/70351/637443319258630000. The identification of each Capital Project on which fees were expended and the amount of the expenditures on each Capital Project including the total percentage of the cost of the Capital Project that was funded with fees are detailed in Exhibit A.
Traffic Mitigation Fee
The Traffic Mitigation Fee is levied to fund improv ements or programs to mitigate City traffic problem s that result either directly or indirectly from development projects. To determine the traffic mitigation fees the City conducts a Traffic Impact Fee Nexus study. The most recent report was approved by Council August 21, 2018. The basis of Santa Clara’s traffi c impact fee is the number of net new PM peak hour vehicle trips generated by new development. Those a dditional trips result in the traffic impacts the f ee is intended to mitigate. The fee is calculated by divi ding the total cost of the projects in the Traffic Mitigation Program by the number of additional PM p eak hour trips generated by new development, which results in a “per PM peak hour trip” fee amou nt. For simplicity of application, this fee is the n converted to a fee per square foot, per hotel room, or per dwelling unit, based on the trip generation rates in the latest ITE Trip Generation Manual. The fee s hall automatically adjust for inflation annually at the start of each fiscal year, based on the latest Engineering News Record Construction Cost Index.
The following table summarizes the activity for the Traffic Mitigation Fund from 2016-17 through 2020-
21. Fund 123 & 533 2016-17 2017-18 2018-19 2019-20 2020-21 Beginning Balance 7,852,470 $ 8,711,428 $ 8,448,382 $ 10,353,046 $ 10,448,972 $ Developer Fees 1,370,084 855,324 1,958,563 182,518 728,208 Interest Income 81,481 115,449 196,524 200,204 152,901 Expenditures (592,607) (1,233,819) (250,423) (286,796) (824,491) Ending Balance 8,711,428 $ 8,448,382 $ 10,353,046 $ 10,448,972 $ 10,505,590 $
During 2020-21, the City collected $728,208 of traffic mitigation fees, earned $152,901 from interest and incurred $824,491 of project expenditures. The gra nd total of the Traffic Impact Fee fund balance tha t is available at the end of 2020-21 is $10,505,590 of w hich $3,371,224 has been held for over five years.
Exhibit A identifies the projects that will make use of all unspent fees held over five years.
There is no impact on City resources since all qual ified impact fees held by the City for over five ye ars are either spent or committed, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000, et seq.
3 Sanitary Sewer Outlet Fee
The Sanitary Sewer Outlet Fee is collected from dev elopers to construct public sanitary sewer faciliti es.
City Council passed Ordinance 1778 on December 3, 2002 which created the sanitary sewer outlet charge which is used for the acquisition, construction, re construction, maintenance, and operation of off-sit e sewerage facilities, and to repay principal and int erest on bonds issued for the construction and reconstruction of such sewerage facilities. The fee shall automatically adjust for inflation annually at the start of each fiscal year, based on the latest Engineering News Record Construction Cost Index.
The following table summarizes the activity for the Sanitary Sewer Outlet Fees from 2016-17 through 2020-21.
Fund 594 2016-17 2017-18 2018-19 2019-20 2020-21
Beginning Balance (2,547,612) $ (2,075,945) $ (1,831,352) $ (1,588,864) $ (1,288,884) $ Developer Fees 471,667 244,593 242,488 299,980 199,286 Expenditures - - - - - Ending Balance (2,075,945) $ (1,831,352) $ (1,588,864) $ (1,288,884) $ (1,089,598) $
The amount of developer fees collected in 2020-21 w as $199,286. The outstanding balance in the Sanitary Sewer Outlet Fee Fund at the end of 2020-2 1 is ($1,089,598). Amounts have been transferred within the Sewer Enterprise Fund to make up the neg ative balance for Capital Projects financed with AB1600 development fees.
There is no impact on City resources since all qualified impact fees collected by the City have been spent, thus eliminating the need to refund any fees to dev elopers according to Government Code Sections 66000-66003.
Sanitary Sewer Connection Fee
The Sanitary Sewer Connection Fee was adopted to im prove and expand the sewer collection system.
City Council passed Ordinance 1428 on August 25, 19 81 which created the sanitary sewer connection charge which is charged whenever a property is init ially connected or requires an addition of a new connection to the sanitary sewer system. The fee is charged based on type of dwelling unit for residen tial (single family, duplex, condominium, etc.) and non- residential which charges based on connection size.
The fee shall automatically adjust for inflation an nually at the start of each fiscal year, based on t he latest Engineering News Record Construction Cost Index.
The following table summarizes activity for the San itary Sewer Connection Fee from 2016-17 through 2020-21.
Fund 594 2016-17 2017-18 2018-19 2019-20 2020-21
Beginning Balance (38,526,561) $ (50,329,856) $ (74,240,874) $ (87,737,999) $ (116,641,597) $ Developer Fees 2,350,574 1,625,820 2,303,752 1,124,123 1,007,031 Expenditures (14,153,869) (25,536,838) (15,800,877) (30,027,721) (5,488,096) Refunded Expenditures - - - - 6,825,720 Ending Balance (50,329,856) $ (74,240,874) $ (87,737,999) $ (116,641,597) $ (114,296,942) $
During 2020-21, the City collected $1,007,031 from developer fees and spent $5,488,096 in construction project. The City received a cumulative $6,825,720 in construction refunds from the City of San Jose f or the Joint Venture project, and the City reported th is under a separate Refunded Expenditures line. Th e
4 current year deficit along with prior cumulative deficits brought the impact fee balance to ($114,296,942) as of 2020-21. Amounts have been transferred within the Sewer Enterprise Fund to make up the negative balance for Capital Projects financed with AB1600 development fees.
There is no impact on City resources since all qualified impact fees held by the City have been spent, thus eliminating the need to refund any fees to develope rs according to Government Code Sections 66000- 66003.
Sanitary Sewer Conveyance Fee
The Sewer Conveyance Fee was approved by City Counc il in June 2007 and is intended to mitigate development impacts to the City’s sanitary sewer co nveyance system resulting from increases in the sanitary sewer discharges. The amount of Sanitary S ewer Conveyance Fee is based directly on the potential sewer discharge volumes of the proposed l and uses. The fee was based on a Sanitary Sewer Capacity Assessment Report 2006, and subsequent upd ate in 2016. The basis of Santa Clara’s sewer conveyance fee is sewer flow rate generated by the new development. The fee is calculated by dividing the total cost of the capacity improvement projects in the Sanitary Sewer Master Plan or its predecess or reports by the total projected sanitary sewer flow rate generated by future developments, which result s in a “per gallon per day (GPD)” fee amount. The per G PD fee multiplied by the estimated sanitary sewer flow rate (GPD) generated by a new development is t he sanitary sewer conveyance fee for that new development.
The following table summarizes the activity for the Sanitary Sewer Conveyance Fees from 2016-17 through 2020-21.
Fund 594 2016-17 2017-18 2018-19 2019-20 2020-21
Beginning Balance 13,737,225 $ 22,504,850 $ 26,847,028 $ 34,179,296 $ 38,232,186 $ Developer Fees 8,630,774 4,136,935 6,916,161 4,079,586 3,126,854 Interest Income 211,354 307,104 515,362 705,177 559,621 Expenditures (74,503) (101,861) (99,255) (731,873) (2,499,454) Ending Balance 22,504,850 $ 26,847,028 $ 34,179,296 $ 38,232,186 $ 39,419,207 $
The current year’s developer fees and interest inco me of $3,126,854 and $559,621 respectively, were partially offset by expenditures of $2,499,454. Th e net change resulted in a current balance of $39,419,207 of which $7,275,439 has been held for o ver five years. Exhibit A identifies the project t hat will make use of all unspent fees held over five years.
There is no impact on City resources since all qual ified impact fees held by the City for over five ye ars are either spent or committed, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Storm Drain Fee
The Storm Drain Fee is levied to mitigate City stor m drainage that results either directly or indirect ly from development projects. The Storm Drain Outlet Fee is codified in the Santa Clara City Code Section
17.15.220 Sanitary Sewer and Storm Drains and was c reated for the purpose of defraying the estimated costs of constructing planned drainage facilities f or removal of surface and storm waters from local drainage areas. The fee is charged based on the amo unt of acreage being developed with a project. The fee shall automatically adjust for inflation annual ly at the start of each fiscal year, based on the l atest Engineering News Record Construction Cost Index.
5 The following table summarizes the activity for the Storm Drain Fees from 2016-17 through 2020-21.
Fund 535 2016-17 2017-18 2018-19 2019-20 2020-21
Beginning Balance 552,889 $ 555,070 $ 626,783 $ 586,578 $ 613,299 $ Developer Fees 10,375 67,194 5,749 15,409 27,903 Interest Income 5,213 4,760 8,845 11,312 9,233 Expenditures (13,407) (241) (54,799) - - Ending Balance 555,070 $ 626,783 $ 586,578 $ 613,299 $ 650,435 $
During 2020-21, the City collected $27,903 from dev eloper fees and earned $9,233 from interest. The grand total of the Storm Drain Fees that is available at the end of 2020-21 is $650,435 of which $240, 903 has been held for over five years. Exhibit A ident ifies the projects that will make use of all unspen t fees held over five years.
There is no impact on City resources since all qual ified impact fees held by the City for over five ye ars are either spent or committed, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Parks Mitigation Fee
The Parks Mitigation Fee was adopted in fiscal year 2014-15 and went into effect for the 2016-17 fisca l year. Fees received can be used to provide (acquir e) public parkland and/or make necessary park improvements according to the restrictions of the Mitigation Fee Act and help the City to address its park, recreation and open space needs The City of Santa Clara completed a Parks & Recreation Facilities Development Impact Fee Study in 2014 and in 2019 th at were reviewed and approved by the City Council after community and stakeholder public comm ent hearings. These reports provide the necessary findings required by the Mitigation Fee Act and Qui mby Act for the adoption of the fees by Council resolution contained in the Municipal Fee Schedule. These reports provide the facility cost and land acquisition cost data and analysis and describe the methodology for calculation of the fees.
The parks and recreation facilities fees use an exi sting inventory demand standard translated into fac ility costs per capita to determine new development’s fai r share of planned facility costs. A cost standard provides a reasonable method for converting disparate types of facilities, in this case parkland and special use recreational facilities, into a single measure of demand (capital cost per capita). The cost stand ard is based on the existing inventory of parks and recrea tion facilities. New residential development would fund the expansion of facilities at the same rate t hat existing residential development has provided facilities to date. The City uses the existing rat io of developed parkland per 1,000 residents. In 2 010 the standard was 2.45. The current standard is 2.60. (Quimby Act allows 3.0 acres/1,000 resident Standard ).
The formula to calculate the cost per capita of pro viding new park facilities involves the following variables: (A) the value per acre of parkland by Zi p Code Area of the City (95050, 90551, and 95054) a s established by annual appraisal; (B) the Level of S ervice standard (parkland acres per 1,0000 resident s); (C) Cost per 1,000 Capita; (D) cost per capita; (F) Development land use type density per household (Single Family = 2.98, Multifamily = 2.40); (G) the per capita value of parkland improvements, and (H) a 2% in lieu fee program administrative charge. The formula used is C = A x B, D = C/1,000. This cost per capita for parkland (D), and the cost per capit a for improvements (G), are each multiplied by the density of development type (F): D x F + G x F = Ba se Fee (E). The administrative fee (H) is then add ed to the Base Fee (E) for the “Total Fee” (I) for each Zip Code Area: H + E = I.
The calculation tables are provided in the in-Lieu Fee Resolution adopted by Council and posted on the City website and incorporated into the Municipal Fe e Schedule. Based on the date the resident
6 developer’s Project application is deemed complete, the total parkland due can be calculated, the developed parkland dedicated, and credits deducted for eligible on-site recreational amenities.
The following table summarizes the activity for the Parks Mitigation Fee from 2016-17 through 2020-21.
Fund 532 2016-17 2017-18 2018-19 2019-20 2020-21
Beginning Balance - $ 13,505,806 $ 10,545,074 $ 5,261,415 $ 10,771,523 $ Developer Fees 14,780,447 - 268,091 7,159,545 1,522,149 Interest Income 90,301 147,253 111,431 176,942 110,320 Expenditures (1,364,942) (3,107,985) (5,663,181) (1,826,379) (3,466,274) Ending Balance 13,505,806 $ 10,545,074 $ 5,261,415 $ 10,771,523 $ 8,937,718 $
During 2020-21, the City collected $1,533,149 for P ark Mitigation fees, earned $110,320 from interest, and incurred $3,466,274 of project expenditures. T he grand total of the Parks Mitigation Fee that is available at the end of 2020-21 is $8,937,718. There are no fees that have been held over five years.
There is no impact on City resources since all qual ified impact fees held by the City for over five ye ars are either spent or committed, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Affordable Housing Fee
The Affordable Housing Fee was adopted to mitigate the impacts of new market-rate housing development and non-residential development on the need for affordable housing, in addition to assisti ng in meeting the City’s share of the region’s housing need and implementing the goals, policies and acti ons specified in the Housing Element of the general pla n. City Council passed Ordinance 1974 on December 5, 2017 which established the affordable housing fe e applicable to residential and nonresidential proj ects and to encourage the development of rental housing and as well as smaller units that may be more affordable by design. The fee established are significantly lower than the amount needed to fully miti gate the impacts of the new for-sale and rental resident projects and non-residential project on the need f or affordable housing. The fees shall automatically adjust for inflation annually using the Engineering News Record McGraw-Hill Construction Weekly Building Index for San Francisco.
The following table summarizes the activity for the Affordable Housing Fee from 2016-17 through 2020-
21. Fund 565 2016-17 2017-18 2018-19 2019-20 2020-21
Beginning Balance - $ - $ - $ - $ - $ Developer Fees - - - - 130,201 Interest Income - - - - 1,083 Expenditures - - - - - Ending Balance -$ -$ -$ -$ 131,284 $
During 2020-21, the City collected $130,201 from de veloper fees and earned $1,083 from interest. The grand total of the Affordable Housing Fees that is available at the end of 2020-21 is $131,284. There are no fees that have been held over five years.
7 There is no impact on City resources since all qualified impact fees collected by the City have been spent, thus eliminating the need to refund any fees to dev elopers according to Government Code Sections 66000-66003.
PUBLIC NOTICE: Public notification was achieved by posting the ava ilability of the report 15 days prior to the meeting, as required by Government Code Section 66006(b)(2).
Attachments:
Exhibit A: Summary of Development Impact Fees
8 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Streets and Highways (Fund 123 & 533)
FY 2019-20 Ending Fund Balance 10,448,972 $
Fees Collected 728,208
Interest Earned 152,901
Expenditures (824,491)
FY 2020-21 Ending Fund Balance 10,505,590 $
Funds Accumulated in Current and Last 5 Years 7,134,366 $ Funds Held Longer than 5 Years 3,371,224 $
Projects Programmed for Impact Fees 6,939,452 $
Project
# Description
Project Status/
Estimated
Completion Year
Total Project
Appropriation All
Funding Sources
Funding
Status
% Impact
Fee Funded
Total Impact
Fee
Appropriation
Total Impact
Fee
Expenditures
Impact Fee
Appropriation
Remaining
FY 2020-21
Impact Fee
Expenditure
1206 Pruneridge Ave-Lawrence Expwy Bicycle Lanes Imp rovement 2021 $ 575,000 100% 20% $ 115,000 $ 15,411 $ 99,589 $ 15,411 1214 Coleman Avenue Widening 2021 115,747 100% 0% 79 79 - - 1215 Sidewalk Installation Program 2021 143,955 100% 21% 30, 208 30,208 - - 1216 Traffic Studies and Signal Needs Assessment/Up grade Ongoing 500,000 100% 64% 320,0 00 222,280 97,720 67,930 1217 Central Control Traffic Signal Upgrade 2022 3,019,800 100% 88% 2,647,871 1,572,357 1,075,514 39,616 1218 Traffic Pre-Emptors 2022 1,295,259 100% 93% 1,208,104 508,601 699,503 2,999 1219 Traffic Signal Enhancements Ongoing 734,141 100% 100% 734, 141 572,051 162,090 42,047 1220 Pedestrian and Bicycle Enhancement Facilities Ongoing 2,759,954 100% 86% 2,359,954 1,378,452 981,502 - 1221 Traffic Monitoring at Various Locations- Phase "C" 2021 123,783 100% 100% 123, 783 123,783 - - 1222 Citywide Accessible Pedestrian Signal Installat ion Ongoing 200,000 100% 100% 200, 000 11,623 188,377 391 1224 Traffic Signal Replacement - ECR-Lafayette, Hom estead, Scott Area 2029 860,510 100% 0% 2, 510 2,510 - - 1232 Traffic Signal Interconnect Upgrade 2025 244,560 100% 41% 100,0 00 14,491 85,509 14,491 1233 Pedestrian Master Plan 2021 307,135 100% 9% 27,9 21 - 27,921 - 1234 Travel Demand Model Update Ongoing 216,700 100% 92% 200,0 00 16,700 183,300 16,700 1236 Traffic Signal Modification 2021 8,160 100% 87% 7,100 7,100 - - 1237 MCB/GAP Intersection Improvement 2021 8,368,124 100% 40% 3,330,400 1,623,243 1,707,157 383,175 1238 Pedestrian Crosswalk Sensors 2021 300,000 100% 100% 300, 000 - 300,000 - 1242 ntersection Improvement- ECR at San Thomas Phas e B 2021 2,843,588 100% 66% 1,886,041 1,683,590 202,451 - 1245 Benton Bike Lane 2021 1,726,000 100% 10% 172,00 0 129,810 42,190 129,810 1248 Pruneridge Ave-Complete Street Plan 2021 416,347 100% 22% 90, 270 - 90,27 0 - 1249 Multimodal Improvement Plan 2021 740,000 100% 32% 238,2 80 - 238,280 - 1251 HAWK Beacon Scott and Harrison 2021 750,000 100% 73% 544,0 00 12,340 531,660 12,340 1253 Saratoga Bike Lane 2021 71,000 100% 46% 32 ,500 32,500 - 32,500 1261 Santa Clara School Access Improvements 2022 200,000 100% 100% 200, 000 67,081 132,919 67,081 1262 Scott-Benton Traffic Signal Timing 2022 165,000 100% 17% 28, 500 - 28,50 0 - 1376 Vehicle Emission Reduction Ongoing 65,000 100% 100% 6 5,000 - 65, 000 - Totals $ 26,749,763 14,963,662 $ 8,024,210 $ $ 6,939,452 $ 824,491 Traffic Mitigation Fee (Fund 123 and 533)
Traffic Mitigation Fee
Since Inception Date Through June 30, 2021
9 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Sanitary Sewer Outlet Fee (Fund 594)
FY 2019-20 Ending Fund Balance (1,288,884) $
Fees Collected 199,286
Interest Earned -
Expenditures -
FY 2020-21 Ending Fund Balance (1,089,598) $
Funds Accumulated in Current and Last 5 Years 1,478,409 $ Funds Held Longer than 5 Years -$
Projects Programmed for Impact Fees -$
Project
# Description
Project
Status
Total Project
Appropriation
All Funding
Sources
Funding
Status
% Impact
Fee
Funded
Total Impact
Fee
Appropriation
Total Impact
Fee
Expenditures
Impact Fee
Appropriation
Remaining (1)
FY 2020-21
Impact Fee
Expenditure
1907 Development Extensions Ongoing $ 220,445 100% 100% 220,445 1,310,043 $ (1,089,598) $ - Note (1) Amounts have been transferred within the Sewer Enterprise Fund to make up the negative balance for Capital Projects financed with AB1600 Development Fees Sanitary Sewer Outlet Fee (Fund 594)
Sanitary Sewer Outlet Fee
Since Inception Date Through June 30, 2021
10 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Sanitary Sewer Connection Fee (Fund 594)
FY 2019-20 Ending Fund Balance (116,641,597) $
Fees Collected 1,007,031
Prior Years Construction Adjustments 6,825,720
Expenditures (5,488,096)
FY 2020-21 Ending Fund Balance (114,296,942) $
Funds Accumulated in Current and Last 5 Years 9,749,718 $ Funds Held Longer than 5 Years -$
Projects Programmed for Impact Fees -$
Project
# Description
Project
Status
Total Project
Appropriation
All Funding
Sources
Funding
Status
% Impact
Fee Funded
Total Impact
Fee
Appropriation
Total Impact
Fee
Expenditures
Impact Fee
Appropriation
Remaining (1)
FY 2020-21
Impact Fee
Expenditure
1908 S.J.- S.C. Regional Wastewater Facility Ongoing $ 162,556,977 100% 7% 12,172,057 126,468,999 $ (114,296,942) $ 5,488,096 Note (1) Amounts have been transferred within the Sewer Enterprise Operating Fund and Debt Service Fund to make up the negative balance for Capital Projects financed with AB1600 Development Fees There were no interfund loans.
(2)
Sanitary Sewer Connection Fee (Fund 594)
Sanitary Sewer Connection Fee
Since Inception Date Through June 30, 2021
The constrcution refunds from City of San Jose were not reported as reduction of the expenditures from FY2017-18 through FY2019-20. The refund in amount of $6,825,720 was adjusted in FY2020-21.
11 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Sanitary Sewer Conveyance Fee (Fund 594)
FY 2019-20 Ending Fund Balance 38,232,186 $
Fees Collected 3,126,854
Interest Earned 559,621
Expenditures (2,499,454)
FY 2020-21 Ending Fund Balance 39,419,207 $
Funds Accumulated in Current and Last 5 Years 32,143,768 $ Funds Held Longer than 5 Years 7,275,439 $
Projects Programmed for Impact Fees 19,275,954 $
Project
# Description
Project
Status
Total Project
Appropriation
All Funding
Sources
Funding
Status
% Impact
Fee
Funded
Total Impact
Fee
Appropriation
Total Impact
Fee
Expenditures
Impact Fee
Appropriation
Remaining
FY 2020-21
Impact Fee
Expenditure
1909 Sanitary Sewer Capacity Improvements Ongoing $ 30,013,640 100% 100% $ 30,013,640 $ 11,024,937 $ 18,988,703 $ 2,320,182 1919 Sanitary Sewer Hydraulic Modeling As Needed Sup port Ongoing 973,636 100% 48% 466,523 179,272 287,251 179,272 Totals $ 30,987,276 30,480,163 $ 11,204,209 $ $ 19,275,954 $ 2,499,454 Sanitary Sewer Conveyance Fee (Fund 594)
Sanitary Sewer Conveyance Fee
Since Inception Date Through June 30, 2021
12 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Storm Drain Fee (Fund 535)
FY 2019-20 Ending Fund Balance 613,299 $
Fees Collected 27,903
Interest Earned 9,233
Expenditures -
FY 2020-21 Ending Fund Balance 650,435 $
Funds Accumulated in Current and Last 5 Years 409,532 $ Funds Held Longer than 5 Years 240,903 $
Projects Programmed for Impact Fees 278,469 $
Project
# Description
Project
Status
Total Project
Appropriation
All Funding
Sources
Funding
Status
%
Impact
Fee
Funded
Total Impact
Fee
Appropriation
Total Impact
Fee
Expenditures
Impact Fee
Appropriation
Remaining
FY 2020-21
Impact Fee
Expenditure
1831 Miscellaneous Storm Drain Improvements Ongoing $ 316,577 100% 32% 100,000 - 100,000 $ - 1834* Storm Drain System Improvement Ongoing 425,374 100% 100% 425,374 392,106 33,268 - 1835 Storm Drain Outfall Reconstruction Program Ongoing 1,673,000 100% 39% 650,000 504,799 145,201 - Totals 2,414,951 $ 1,175,374 $ 896,905 $ 278,469 $ - Storm Drain Fee (Fund 535)
Storm Drain Fee
Since Inception Date Through June 30, 2021
13 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Parks Mitigation Fee (Fund 532)
FY 2019-20 Ending Fund Balance 10,771,523 $
Fees Collected 1,522,149
Interest Earned 110,320
Expenditures (3,466,274)
FY 2020-21 Ending Fund Balance 8,937,718 $
Funds Accumulated in Current and Last 5 Years 24,366,479 $ Funds Held Longer than 5 Years -$
Projects Programmed for Impact Fees 5,576,448 $
Project
# Description
Project
Status/
Estimated
Completion
Year
Total Project
Appropriation All
Funding Sources
Funding
Status
% Impact
Fee Funded
Total Impact
Fee
Appropriation
Total Impact
Fee
Expenditures
Impact Fee
Appropriation
Remaining
FY 2020-21
Impact Fee
Expenditure
3001 Misc. Park Improvements Ongoing 2,265,374 $ 100% 26% 591,400 $ 591,400 - $ 391,400 $ 3136 Westwood Oaks Park Playground Rehabilitatiion 20 23 1,149,800 100% 100% 1,149,800 - 1,149,800 - 3177 Youth Soccer Fields & Athletic Facilities 2021 45 ,251,768 100% 22% 10,032,925 9,989,884 43,041 2,569,886 3178 Playground Construction 2022 4,335,275 100% 21% 920,121 920,121 - 339,886 3181 Park Impact Fees Monitoring Project Ongoing 1,148,791 100% 73% 834,019 343,352 490,667 49,471 3184 Montague Park Enhancement 2022 4,290,000 100% 100% 4,290,000 397,060 3,892,940 115,631 Totals 58,441,008 $ 17,818,265 $ 12,241,817 $ 5,576,448 $ 3,466,274 $ Parks Mitigation Fee (Fund 532)
Parks Mitigation Fee
Since Inception Date Through June 30, 2021
14 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2021
Affordable Housing Fee (Fund 565)
FY 2019-20 Ending Fund Balance -$
Fees Collected 130,201
Interest Earned 1,083
Expenditures -
FY 2020-21 Ending Fund Balance 131,284 $
Funds Accumulated in Current and Last 5 Years 131,284 $ Funds Held Longer than 5 Years -$
Projects Programmed for Impact Fees -$
Project
# Description
Project
Status
Total Project
Appropriation
All Funding
Sources
Funding
Status
%
Impact
Fee
Funded
Total Impact
Fee
Appropriation
Total Impact
Fee
Expenditures
Impact Fee
Appropriation
Remaining (1)
FY 2020-21
Impact Fee
Expenditure
Affordable Housing Fee (Fund 565)
Affordable Housing Fee
Since Inception Date Through June 30, 2021