Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2023 Page 1 of 5 Rev: 12/22/23
RESOLUTION NO. 24-9301
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA,
ACCEPTING THE AB1600 REPORT ON DEVELOPMENT IMPACT
FEES FOR FISCAL YEAR ENDED JUNE 30, 2023 AND MAKING
FINDINGS REGARDING THE CONTINUING NEED FOR
UNEXPENDED BALANCES OF IMPACT FEES AS OF JUNE 30,
2023
WHEREAS, Government Code Sections 66000 et seq. (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 their impacts on public facilities;
WHEREAS, the City of Santa Clara (“City”) has identified eight (9) 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) , the Tasman East Specific Plan Infrastructure Impact Fee (Fund 541), the Patrick Henry Drive Infrastructure Impact Fee (Fund 542), and the Affordable Housing Fee (Fund 565) ;
WHEREAS, in accordance with the provisions of AB1600, the City has set up separat e 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 2022-23 in accordance with AB1600, “AB1600 Report on Development Impact Fees for Fiscal Year ended June 30, 2023,” 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 AB1600 fees for FY 2022-23 is reflected in the City’s Municipal Fee Schedule, previously adopted by this Council; Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2023 Page 2 of 5 Rev: 12/22/23
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 December 22, 2023;
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) de monstrate 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 $4,609 ,189 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 som e fee revenues which were received more than five (5) years ago. The sum of $ 232,461 representing fees and accrued interest collected for storm drainage mitigation remains unexpended five (5) or more years after deposit of the fees;
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 $17,952,660 representing fees and accrued interest collected for sewer conveyance mitigation remains unexpended five (5) or more years after deposit of the fees; and WHEREAS, the City desires to make the findings required by law with respect to these unexpended fees.
Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2023 Page 3 of 5 Rev: 12/22/23
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. That the City Council hereby accepts the attached AB1600 Report on Development Impact Fees for Fiscal Year ended June 30, 2023 (“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 differ ent 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 $11,413,512 fund balance in the Traffic Mitigation Fund that was at least five (5) years old as of June 30, 2023, totals $4,609,189. The City will use the entire fund balance for the projects identified in Exhibit A of the Report which are programmed in the Capital Improvement Plan. The Traffic Mitigation Fund has projects schedu led 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% wi th Traffic Mitigation Impact Fees are funded by other sources totaling $13,598,728. Remaining appropriations totaling $8,145,714 from the other sources are as follows: Reimbursable Grants $224,298; Santana Row Settlement $1,387,340; Vehicle Registration Fee $452,372; Bonds Proceeds $1,451,057; Measure B $971,375; Gas Tax $694,072; Electric Utility Contribution $1,000,000; Regional Traffic Mitigation Fee $1,108,500; General Fund $90,000; and Developer Contributions $766,700. All these amounts have been received and are available except the Reimbursable Grants, Measure B, Regional Traffic Mitigation Fee, and Developer Contributions.
Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2023 Page 4 of 5 Rev: 12/22/23
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. A s new development occurs, additional improvement projects are identified and added to the Storm Drain Impact Fee Project List.
D. The portion of the $433,968 fund balance in the Storm Drain Impact Fee Fund that was at least five (5) years old as of June 30, 2023, totals $232,461. The City will use the entire fund balance for the projects identified in Exhibit A of the Report which are programmed in the Capital Improvement Plan. The Storm Drai n 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 $972,008. The remaining appropriation f rom 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. //
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F. The portion of the $54,098,272 fund balance in the Sanitary Sewer Conveyance Fees Fund that was at least five (5) years old as of June 30, 2023, totals $17,952,660. The City will use the entire fund balance for the projects identified in Exhibit A of the 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 . The project identified in Exhibit A which is funded at less than 100% with Sanitary Sewer Conveyance Fees is funded by the Sewer Utility Customer Service Fees totaling $500,000 . The remaining appropriation from the Sanitary Sewer Conveyance Fees is $500,000.
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 30TH DAY OF JANUARY, 2024, BY THE FOLLOWING VOTE :
AYES: COUNCILORS:
NOES : COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
Attachments incorporated by reference :
Becker, Chahal, Hardy, Jain, Park, and Watanabe ,
and Mayor Gillmor
None
None
None ~ /)
A TT EST: .... ~ - -----'---------' =----__..,--
NORA PIMENTEL, MMC
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
1. AB1600 Report on Development Impact Fees FYE June 30, 2023 Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2023 Rev: 12/22/23
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2023
1 BACKGROUND
Cities and counties often charge fees on new developm ent to fund public improvements, public amenities and public services. For example, Traffic Mitigation F ees are used to fund transit facilities, streets, bike lanes and sidewalks. These fees are commonly known as development impact fees (Developer Fees). In 1989, the State Legislature passed Assembly Bill 1600 (AB1600) which added Section 66000, et seq., to the California Government Code. The chapter sets fo rth a number of requirements that local agencies must follow if they are to collect fees from developers to defray the cost of the construction of public facilities related to development pr ojects. Government Code Secti ons 66000-66025 apply to developer fees established, increased or imposed on or after Ja nuary 1, 1989, and generally sets forth four broad requirements:
1. A local jurisdiction must follow the process set fort h in the bill and make certain determinations regarding the purpose and use of the fees and to establish 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 to prevent commingling of public improvement fees and the General Fund.
3. If a local jurisdiction has had possession of a deve loper fee for five years or more and has not committed that money to a project or actually sp ent 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 required 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 Fee, Tasman East Specific Plan Infrastructure Impact Fee, Affordable Housing Fees, and Patrick Henr y Drive Infrastructure Impact Fee that the City of Santa Clara (City) collects qualify as Development Imp act Fees and therefore must comply with the above referenced Government Code Sections. The amount of each of these development impact fees for fiscal year 2022-23 is reflected in the City’s Muni cipal Fee Schedule, previously adopted by the City Council. The adopted City’s Municipal Fee Sc hedule for fiscal year 2022-23 is available at:
https://www.santaclaraca.gov/home/showpublisheddocument/78108/638053165706570000. As required by law, these fees are segregated and accounted fo r as Special Revenue Funds. Government Code Section 66001 requires the City to make available to the public certain information regarding these fees for each fund within 180 days afte r the end of each fiscal year. Acco rdingly, the following report is presented to the City Council for review.
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2023
2 ANALYSIS
Utilizing the first in, first out (FIFO) accounting met hod – where the initial revenue received is the first expended, staff analyzed the year-end balances for the fiscal year 2022-23. This analysis is to identify any portion of the balances that had been outstanding for five or more years. In instances where a balance exceeded the five-year threshold, a thorough review of previously identified projects is initiated to assess whether any developer fees collected require refunding.
Many of the identified projects are already underway , and the City has appropriated funds for these projects as noted in the City’s FY2022-23 and 2023 -24 Biennial Capital Improvement Program Budget Book. The publication can be found on the City’s website and is accessible at the following location:
https://www.santaclaraca.gov/home/showpublisheddocument/77216/638085057478270000. Exhibit A provides a detailed breakdown of the identification of every Capital Project where fees were utilized, along with the corresponding expenditure amounts for each project. This exhibit also specifies the total percentage of the Capital Project cost covered by these fees.
Traffic Mitigation Fee
The Traffic Mitigation Fee is levied to fund improvem ents or programs to mitig ate City traffic impacts that result either directly or indirectly from development projects. To determine the traffic mitigation fees the City conducts a Traffic Impact Fee Nexus st udy and the most recent report was approved by Council August 21, 2018. The basis of Santa Clara’s traffic mitigation fee, also more commonly known as a traffic impact fee is the number of net new PM peak hour vehicle trips generated by new development. Those additional trips result in the traffic impacts the fee is intended to mitigate. The fee is calculated by dividing the total cost of the improvement projects in the Traffic Mitigation Program by the number of additional PM peak hour trips generated by new developm ent, which results in a “per PM peak hour trip” fee amount. For simplicity of application, this fee is then converted to a fee per square foot, per hotel room, or per dwelling unit, based on the trip generati on rates in the latest ITE Trip Generation Manual.
The fee is automatically adjusted fo r inflation annually at the start of each fiscal year, based on the latest Engineering News Record Construction Cost Index.
The following table summarizes th e activity for the Traffic Mitigation Fund from fiscal year 2018-19 through fiscal year 2022-23.
Fund 123 & 533 2018-19 2019-20 2020-21 2021-22 2022-23
Beginning Balance 8,448,382$ 10,353,046 $ 10,448,972 $ 10,505,590 $ 10,938,618 $ Developer Fees 1,958,563 182,518 728,208 978,860 1,092,092 Interest Income 196,524 200,204 152,901 165,723 177,957 Expenditures (250,423) (286,796) (824,491) (711,555) (795,155) Ending Balance 10,353,046$ 10,448,972 $ 10,505,590 $ 10,938,618 $ 11,413,512 $
During the fiscal year 2022-23, the City collected $1,09 2,092 in traffic mitigation fees, gained $177,957 in interest, and expended $795,155 on various proj ects. The accumulative amount of the Traffic Impact Fee available at the end of fiscal year 2022-23 is $1 1,413,512 with $4, 609,189 being held for over five years. Exhibit A identifies the projects that will make use of all unspent fees held over five years.
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2023
3 There is no impact on City resources since all qualified impact fees held by the City for over five years are either spent or committed, thus eliminating the n eed to refund any fees to developers according to Government Code Sections 66000 and subsequent section.
Sanitary Sewer Outlet Fee
The Sanitary Sewer Outlet Fee is collected from devel opers to construct public sanitary sewer facilities.
City Council passed Ordinance 1778 on December 3, 200 2 which created the sanitary sewer outlet charge which is used for the acquisition, construction, r econstruction, maintenance, and operation of off-site sewerage facilities, and to repay principal and in terest on bonds issued for the construction and reconstruction of such sewerage facilities. The fee sh all automatically adjust for inflation annually at the start of each fiscal year, based on the latest Engineering News Record Construction Cost Index.
The following table summarizes the act ivity for the Sanitary Sewer Ou tlet Fees from fiscal year 2018-19 through fiscal year 2022-23.
Fund 594 2018-19 2019-20 2020-21 2021-22 2022-23
Beginning Balance (1,831,352)$ (1,588,864) $ (1,288,884) $ (1,089,598) $ (669,142) $ Developer Fees 242,488 299,980 199,286 420,456 798,692 Interest Income - - - - 1,972 Ending Balance (1,588,864)$ (1,288,884) $ (1,089,598) $ (669,142) $ 131,522 $
The amount of developer fees collected in the fis cal year 2022-23 was $798,6 92, with an additional $1,972 generated in interest, and no project expenditu res were incurred. The remaining balance in the Sanitary Sewer Outlet Fee Fund at the end of fiscal year 2022-23 is $131,522.
There is no impact on City resources since all qualified im pact fees collected by the City have been spent, thus eliminating the need to refund any fees to de velopers according to Government Code Sections 66000-66003.
Sanitary Sewer Connection Fee
The Sanitary Sewer Connection Fee was adopted to improve and expand the sewer collection system.
City Council passed Ordinance 1428 on August 25, 198 1 which created the sanitary sewer connection charge which is charged whenever a property is in itially connected or requires an addition of a new connection to the sanitary sewer system. The fee is ch arged based on type of dwelling unit for residential (single family, duplex, condominium, etc.) and non -residential which charges based on connection size.
The fee shall automatically adjust for inflation annually at the start of each fiscal year, based on the latest Engineering News Record Construction Cost Index.
The following table summarizes activity for the Sani tary Sewer Connection Fee from fiscal year 2018-19 through fiscal year 2022-23.
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2023
4 Fund 594 2018-19 2019-20 2020-21 2021-22 2022-23
Beginning Balance (74,240,874)$ (87,737,999) $ (116,641,597) $ (114,296,942) $ (145,899,755) $ Developer Fees 2,303,752 1,124,123 1,007,031 1,389,253 2,610,881 Expenditures (15,800,877) (30,027,721) (5,488,096) (37,645,683) (13,852,060) Refunded Expenditures - - 6,825,720 4,653,617 1,286,090 Ending Balance (87,737,999) $ (116,641,597) $ (114,296,942) $ (145,899,755) $ (155,854,844) $
In the fiscal year 2022-23, the City collected $2, 610,881 in developer fees and spent $13,852,060 in construction project. A construction refund of $1,286 ,090 was received from the City of San Jose for a joint project and this was account separately under the Refunded Expenditures line. As of June 30, 2023, the accumulative deficit in the Sa nitary Sewer Connection Fee is negative $155,854,844. To address the deficit in capital projects funded by Sanitary Sewe r Connection Fee, transfer s were made within the Sewer Enterprise Fund.
There is no impact on City resources since all qualified impact fees held by the City have been spent, thus eliminating the need to refund any fees to develope rs according to Governme nt Code Sections 66000- 66003.
Sanitary Sewer Conveyance Fee
The Sewer Conveyance Fee was approved by City C ouncil in June 2007 and is intended to mitigate development impacts to the City’s sanitary sewer conveyance system resu lting from increases in the sanitary sewer discharges. The amount of Sanitary Sewer Conveyance Fee is based directly on the potential sewer discharge volumes of the proposed la nd uses. The fee was based on a Sanitary Sewer Capacity Assessment Report 2006, and subsequent update in 2016. The basis of Santa Clara’s sewer conveyance fee is sewer flow rate generated by the new development. Th e fee is calculated by dividing the total cost of the capacity improvement projects in the Sanitary Sewer Master Plan or its predecessor reports by the total projected sanitary sewer flow rate generated by future devel opments, which results in a “per gallon per day (GPD)” fee amount. The per GPD fee multiplied by the es timated sanitary sewer flow rate (GPD) generated by a ne w development is the sanitary sew er conveyance fee for that new development.
The following table summari zes the activity for the Sanitary Se wer Conveyance Fees from fiscal year 2018-19 through fiscal year 2022-23.
Fund 594 2018-19 2019-20 2020-21 2021-22 2022-23
Beginning Balance 26,847,028$ 34,179,296 $ 38,232,186 $ 39,419,207 $ 44,853,964 $ Developer Fees 6,916,161 4,079,586 3,126,854 5,214,338 9,053,180 Interest Income 515,362 705,177 559,621 720,262 811,032 Expenditures (99,255) (731,873) (2,499,454) (499,843) (619,904) Ending Balance 34,179,296$ 38,232,186 $ 39,419,207 $ 44,853,964 $ 54,098,272 $
The developer fees of $9,053,180 along with inter est income of $811,032 were partly offset by expenditures of $619,904 in fiscal year 2022-23. The net change yielded a current balance of $54,098,272, out of which $17,952,660 has been held for over five years. Exhibit A outlines the projects that will make use of all unspent fees held over five years.
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2023
5 There is no impact on City resources since all qualified impact fees held by the City for over five years are either spent or committed, thus eliminating the n eed 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 storm dr ainage that results either directly or indirectly 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 wa s created for the purpose of defraying the estimated costs of constructing planned drainage facilities fo r removal of surface and storm waters from local drainage areas. The fee is charged based on the am ount of acreage being developed with a project. The fee shall automatically adjust for in flation 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 Storm Drain Fees from fiscal year 2018-19 through fiscal year 2022-23.
Fund 535 2018-19 2019-20 2020-21 2021-22 2022-23
Beginning Balance 626,783 $ 586,578 $ 613,299 $ 650,435 $ 423,110 $ Developer Fees 5,749 15,409 27,903 33,450 4,352 Interest Income 8,845 11,312 9,233 6,794 6,506 Expenditures with Prior Year Adjustment (54,799) - - (267,569) - Ending Balance 586,578 $ 613,299 $ 650,435 $ 423,110 $ 433,968 $
In the fiscal year 2022-23, the City collected $4,352 in developer fees and earned $6,506 from interest.
The accumulative amount of the Storm Drain Fees availabl e at the end of fiscal year 2022-23 is $433,968 with $232,461 being held for over five years. Exhibi t 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 qualified impact fees held by the City for over five years are either spent or committed, thus eliminating the n eed to refund any fees to developers according to Government Code Sections 66000-66003.
Parks Mitigation Fee
The Parks Mitigation Fee was adopted in the fiscal y ear 2014-15 and went into effect in the fiscal year 2016-17. Fees received can be used to acquire 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 complete d a Parks & Recreation Facilities Development Impact Fee Study in 2014 and in 2019 that were reviewed and approved by the City Council after community and stakeholder public comment hearings. These reports provide th e necessary findings required by the Mitigation Fee Act and Quimby 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.
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2023
6 The parks and recreation facilities fees use an existing inventory demand standard translated into facility costs per capita to determine new development’s fair share of planned facility costs. A cost standard provides a reasonable method for converting disparate t ypes of facilities, in this case parkland and special use recreational facilities, into a single measure of demand (capital cost per capita). New residential development would fund the expansion of facilities at the same rate that existing residential development has provided facilities to date. The City uses the existing ratio of developed parkland per 1,000 residents.
In 2010 the standard was 2.45. The current sta ndard is 2.60. (Quimby Act allows 3.0 acres/1,000 resident Standard).
The calculation tables are provided in the in-Lieu Fee Resolution adopted by Council and posted on the City website and incorporated into the Municipa l Fee Schedule. Based on the date the resident 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 th e activity for the Parks Mitigation Fee from fiscal year 2018-19 through fiscal year 2022-23.
Fund 532 2018-19 2019-20 2020-21 2021-22 2022-23
Beginning Balance 10,545,074$ 5,261,415 $ 10,771,523 $ 8,937,718 $ 20,682,234 $ Developer Fees 268,091 7,159,545 1,522,149 14,634,898 36,637,032 Interest Income 111,431 176,942 110,320 124,450 577,716 Expenditures (5,663,181) (1,826,379) (3,466,274) (3,014,832) (12,226,455) Ending Balance 5,261,415$ 10,771,523 $ 8,937,718 $ 20,682,234 $ 45,670,527 $
During the fiscal year 2022-23, the City collected $36, 637,032 in Park Mitigati on fees, earned $577,716 in interest, and incurred expenditures $12,226,455 in various projects. The balance of the Parks Mitigation Fee as of June 30, 2023 is $45,670,527 with no fees being held for over five years.
There is no impact on City resources since all qualified impact fees held by the City for over five years are either spent or committed, thus eliminating the n eed to refund any fees to developers according to Government Code Sections 66000-66003.
Tasman East Specific Plan Infrastructure Impact Fee
On November 13, 2018, the City Council adopted the Tasman East Specific Plan to guide the transition of an underutilized 45-acre industrial neighborhood east of the Great America Transit Center into a pedestrian-friendly, transit-oriented development, providing for the addition of 4,500 new residential units, 100,000 square feet of reta il, and 10 acres of open space near tran sit and jobs. In coordination with developers within the Specific Plan area, the City established an Infrastructure Impact Fee for the Specific Plan area to create an equitable distribution of ar ea-wide and common public infrastructure costs for all residential developments within the Specific Plan and to finance capital facility and infrastructure costs to serve these developments.
Ordinance No. 2026 Adding Subsection 17.15.350 to Chapter 15 of Title 17 of the Santa Clara City Code Regarding the Tasman East Specific Plan Infrastructure Impact Fee was adopted on November 17, 2020.
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2023
7 The following table summarizes the act ivity for the Tasman East Specifi c Plan Infrastructure Impact Fee from fiscal year 2018-19 through fiscal year 2022-23.
Fund 541 2018-19 2019-20 2020-21 2021-22 2022-23
Beginning Balance - $ - $ - $ (170,921)$ 3,260,003 $ Developer Fees - - - 3,465,453 4,411,858 Interest Income - - - 5,896 75,296 Expenditures - - (170,921) (40,425) (1,786,418) Ending Balance - $ - $ (170,921)$ 3,260,003 $ 5,960,739 $
In the fiscal year 2022-23, the City received $4,411,858 in developer fees, earned $75,296 in interest and incurred expenditure of $1,786,418 in projects. The accumulative bala nce of the Tasman East Specific Plan Infrastructure Impact Fees at the end of fiscal year 2022-23 is $5,960,739 with no fees being held for over five years.
There is no impact on City resources since all qualified im pact fees collected by the City have been spent, thus eliminating the need to refund any fees to de velopers according to Government Code Sections 66000-66003.
Affordable Housing Fee
The Affordable Housing Fee was adopted to m itigate the impacts of new market-rate housing development and non-residential development on the need for affordable housing, in addition to assisting in meeting the City’s share of the region’s housing need and implementing the goals, policies and actions specified in the Housing Element of the general pl an. City Council passed Ordinance 1974 on December 5, 2017 which established the affordable housing fee applicable to residential and nonresidential projects and to encourage the development of rental housin g and as well as smaller units that may be more affordable by design. The fee established are significan tly lower than the amount needed to fully mitigate the impacts of the new for-sale and rental resident projects and non-residential project on the need for affordable housing. The fees shall au tomatically adjust for inflation an nually using the Engineering News Record McGraw-Hill Construction Weekly Building Index for San Francisco.
The following table summarizes th e activity for the Affordable H ousing Fee from fiscal year 2018-19 through fiscal year 2022-23.
Fund 565 2018-19 2019-20 2020-21 2021-22 2022-23
Beginning Balance - $ - $ - $ 131,284$ 5,760,577 $ Developer Fees - - 130,201 5,613,415 630,142 Interest Income - - 1,083 15,878 97,267 Ending Balance - $ - $ 131,284$ 5,760,577$ 6,487,986 $
During the fiscal year 2022-23, the City collected $630,412 in developer fees and earned $97,267 in interest. The accumulative balance of the Affordable Housing Fees as of June 30, 2023 is $6,487,986 with no fees being held for over five years.
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2023
8 There is no impact on City resources since all qualified im pact fees collected by the City have been spent, thus eliminating the need to refund any fees to de velopers according to Government Code Sections 66000-66003.
Patrick Henry Drive Infrastructure Impact Fee
On March 22, 2022, the City Council adopted the Pa trick Henry Drive Specific Plan (Specific Plan) to guide the transition of an underutilized 74-acre indu strial neighborhood bounded by Mission College to the south, Great America Parkway to the east, the He tch-Hetchy right-of-way to the north, and Calabazas Creek to the west into a pedestrian-friendly, tr ansit-oriented neighborhood. The Specific Plan contemplates two unique land use scenarios per Table 1 below related to proposed residential units and office uses. The Specific Plan al so incorporates approximately 310, 000 square feet of neighborhood- oriented convenience retail and up to 14 acres of open space which will include a diverse network of public parks, publicly accessible green infrastructure, and private recreational spaces.
Ordinance No. 2046 Adding Subsection 17.15.360 to Chapter 15 of Title 17 of the Santa Clara City Code Regarding the Patrick Henry Drive Specific Plan Infrastructure Impact Fee was adopted on March 22, 2022.
In the fiscal year 2022-23, no activities were conducted for this impact fee.
PUBLIC NOTICE: Public notification was achieved by posti ng the availability of the report 15 days prior to the meeting, as required by Government Code Section 66006(b)(2).
Attachments:
Exhibit A: Summary of Development Impact Fees
9 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
Streets and Highways (Fund 123 & 533)
FY 2021-22 Ending Fund Balance 10,938,618$
Fees Collected 1,092,092
Interest Earned 177,957
Expenditures (795,155)
FY 2022-23 Ending Fund Balance 11,413,512$
Funds Accumulated in Current and Last 5 Years 6,804,323$ Funds Held Longer than 5 Years 4,609,189$
Projects Programmed for Impact Fees 9,444,419$
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 2022-23
Impact Fee
Expenditure
1216 Traffic Studies and Signal Needs Assessment/Upgrade 2023 $ 388,194 100% 62% $ 242,280 $ 242,280 $ - $ 14,060 1217 Traffic Signal Management Software Upgrade/Replacement 2023 3,372,871 100% 89% 3,000,942 1,627,829 1,373,113 - 1218 Traffic Pre-Emptors 2023 1,445,259 100% 94% 1,358,104 508,601 849,503 - 1219 Traffic Signal Enhancements Ongoing 2,206,246 100% 70% 1,550,239 572,051 978,188 - 1220 Pedestrian and Bicycle Enhancement Facilities Ongoing 2,281,201 100% 74% 1,681,201 1,383,130 298,071 1,206 1232 Traffic Signal Interconnect Upgrade 2032 1,050,000 100% 100% 1,050,000 107,656 942,344 93,165 1234 Transportation Modeling Update Ongoing 216,700 100% 92% 200,000 129,431 70,569 93,531 1237 MCB/GAP Intersection Improvement Project 2025 8,368,124 100% 40% 3,330,400 1,830,120 1,500,280 68,445 1245 Benton Bike Lanes 2024 1,726,000 100% 14% 249,000 129,810 119,190 - 1248 Pruneridge Ave-Complete Streets Plan 2024 416,347 100% 22% 90,270 66,275 23,995 33,895 1249 Multimodal Improvement Plan Funding Agreement 2027 740,000 0% 0% 161,500 - 161,500 - 1251 HAWK Beacon on Scott and Harrison 2023 750,000 100% 100% 750,000 489,122 260,878 426,454 1258 Multimodal Improvement Plan Phase 2 Projects 2027 1,340,000 0% 0% 60,000 - 60,000 - 1259 Monroe Los Padres Traffic Signal Modification 2024 680,000 100% 19% 127,856 - 127,856 - 1261 Santa Clara School Access Improvements 2023 2,471,000 72% 54% 1,325,000 213,996 1,111,004 42,921 1272 TDA21 Bicycle Faciities Upgrade 2024 131,410 28% 28% 37,356 - 37,356 - 1274 Lafayette St Class IV Bike Lanes 2025 200,000 10% 10% 20,000 297 19,703 - 1275 De La Cruz Boulevard Class IV Bikeway Study 2024 250,083 44% 44% 110,083 5,954 104,129 5,954 1276 Monroe Street Class II Buffered Bike Lane Study 2024 263,700 47% 47% 123,700 4,040 119,660 4,040 1277 Walsh Avenue Class IV Bikeway Study 2024 301,708 42% 42% 126,708 5,758 120,950 5,758 1280 MCB Class IV Bike Lanes 2023 65,000 83% 83% 53,877 - 53,877 - 1283 Steven Creek Boulevard Vision Study 2025 100,296 100% 100% 100,296 - 100,296 - 1285 Pruneridge Avenue Signal Timing 2025 1,000,000 92% 92% 915,030 - 915,030 - 1376 Safe Route to School Ongoing 601,084 31% 17% 102,653 5,726 96,927 5,726 Totals $ 30,365,223 16,766,495$ 7,322,076 $ $ 9,444,419 $ 795,155 Traffic Mitigation Fee (Fund 123 and 533)
Traffic Mitigation Fee
Since Inception Date Through June 30, 2023
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, 2023
Sanitary Sewer Outlet Fee (Fund 594)
FY 2021-22 Ending Fund Balance (669,142)$
Fees Collected 798,692
Interest Earned 1,972
FY 2022-23 Ending Fund Balance 131,522$
Funds Accumulated in Current and Last 5 Years 131,522$
Sanitary Sewer Outlet Fee (Fund 594)
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, 2023
Sanitary Sewer Connection Fee (Fund 594)
FY 2021-22 Ending Fund Balance (145,899,755)$
Fees Collected 2,610,881
Expenditures (12,565,970)
FY 2022-23 Ending Fund Balance (155,854,844)$
Funds Accumulated in Current and Last 5 Years -$
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 2022-23
Impact Fee
Expenditure
1908 S.J.- S.C. Regional Wastewater Facility Ongoing $ 242,448,465 100% 41% $ 98,641,456 $ 98,641,456 $ - $ 12,565,970 Note (1) Amounts have been transferred within the Sewer Enterpri se 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.
Sanitary Sewer Connection Fee (Fund 594)
Sanitary Sewer Connection Fee
Since Inception Date Through June 30, 2023
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, 2023
Sanitary Sewer Conveyance Fee (Fund 594)
FY 2021-22 Ending Fund Balance 44,853,964$
Fees Collected 9,053,180
Interest Earned 811,032
Expenditures (619,904)
FY 2022-23 Ending Fund Balance 54,098,272$
Funds Accumulated in Current and Last 5 Years 36,145,612$ Funds Held Longer than 5 Years 17,952,660$
Projects Programmed for Impact Fees 22,847,345$
Project
#D e s c r i p t i o n
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 2022-23
Impact Fee
Expenditure
1909 Sanitary Sewer Capacity Improvements Ongoing $ 34,261,736 100% 100% $ 34,261,736 $ 11,574,693 $ 22,687,043 $ 300,168 1920 Sanitary Sewer Master Plan Update Ongoing 980,038 100% 49% 480,038 319,736 160,302 319,736 Totals $ 35,241,774 34,741,774$ 11,894,429 $ $ 22,847,345 $ 619,904 Sanitary Sewer Conveyance Fee (Fund 594)
Sanitary Sewer Conveyance Fee
Since Inception Date Through June 30, 2023
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, 2023
Storm Drain Fee (Fund 535)
FY 2021-22 Ending Fund Balance 423,110$
Fees Collected 4,352
Interest Earned 6,506
Expenditures Adjustment -
FY 2022-23 Ending Fund Balance 433,968$
Funds Accumulated in Current and Last 5 Years 201,507$
Funds Held Longer than 5 Years 232,461$
Projects Programmed for Impact Fees 278,469$
Project
#D e s c r i p t i o n
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 2022-23
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% 55% 917,569 772,368 145,201 - Totals 2,414,951$ 1,442,943 $ 1,164,474 $ 278,469 $ - Storm Drain Fee (Fund 535)
Storm Drain Fee
Since Inception Date Through June 30, 2023
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, 2023
Parks Mitigation Fee (Fund 532)
FY 2021-22 Ending Fund Balance 20,682,234$
Fees Collected 36,637,032
Interest Earned 577,716
Expenditures (12,226,455)
FY 2022-23 Ending Fund Balance 45,670,527$
Funds Accumulated in Current and Last 5 Years 39,125,827$ Funds Held Longer than 5 Years -$
Projects Programmed for Impact Fees 23,302,858$
Project
#D e s c r i p t i o n
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 2022-23
Impact Fee
Expenditure
3101 Park & Recreation Master Plan 300,000 $ 100% 100% 300,000 $ - $ 300,000$ - $ 3102 Facility Condition Assessment Update 400,000 100% 100% 400,000 - 400,000 - 3126 Patrick Henry Community Art Center 529,353 100% 100% 529,353 - 529,353 - 3127 Parkland Acquisition 9,976,073 100% 100% 9,976,073 - 9,976,073 - 3128 MFA Developer Reimbursement Project 210,572 100% 100% 210,572 - 210,572 - 3133 Central Park Master Plan New Improvement 2024 2,518,448 100% 100% 2,518,448 172,136 2,346,312 138,015 3136 Westwood Oaks Park Pla yground Rehabilitation 2024 2,149,800 100% 100% 2,149,800 252,823 1,896,977 173,890 3181 Park Impact Fees Monitoring Project Ongoing 1,822,439 100% 79% 1,432,097 837,244 594,853 465,993 3183 Central Park Arbor Playground 2024 9,134,455 80% 48% 4,363,500 - 4,363,500 - 3184 Montague Park Enhancement 2024 7,858,340 100% 100% 7,858,340 6,030,810 1,827,530 5,610,153 3196 Central Park Aquatic Center Planning & Design 358,000 100% 100% 358,000 - 358,000 - 3197 Parks Service Center Roof 800,000 100% 63% 500,000 312 499,688 312 3199 Park&Rec Engineering Management Ongoing 935,803 100% 57% 533,256 533,256 - 239,877 3000 General Fund Loan Repayment 2023 10,663,425 100% 100% 10,663,425 10,663,425 - 5,598,215 Totals 47,656,708$ 41,792,864 $ 18,490,006 $ 23,302,858 $ 12,226,455 $ Parks Mitigation Fee (Fund 532)
Parks Mitigation Fee
Since Inception Date Through June 30, 2023
15 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
Tasman East Specific Plan Infrastructure Impact Fee (Fund 541) FY 2021-22 Ending Fund Balance 3,260,003$
Fees Collected 4,411,858
Interest Earned 75,296
Expenditures (1,786,418)
FY 2022-23 Ending Fund Balance 5,960,739$
Funds Accumulated in Current and Last 5 Years 5,960,739$ Funds Held Longer than 5 Years -$
Projects Programmed for Impact Fees 1,423,145$
Project
#D e s c r i p t i o n
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 2022-23
Impact Fee
Expenditure
4610 Tasman East Admin Studay and Engineering Ongoing 237,880 $ 100% 95% 226,048 $ 226,048 $ - $ 14,702$ 4611 Tasman East Developer Reimbursement Project Ongoing 3,194,861 100% 100% 3,194,861 1,771,716 1,423,145 1,771,716 Totals $ 3,432,741 3,420,909 1,997,764 $ 1,423,145 $ 1,786,418 Tasman East Specific Plan Infrastructure Impact Fee (Fund 541) Affordable Housing Fee
Since Inception Date Through June 30, 2023
16 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
Affordable Housing Fee (Fund 565)
FY 2021-22 Ending Fund Balance 5,760,577$
Fees Collected 630,142
Interest Earned 97,267
FY 2022-23 Ending Fund Balance 6,487,986$
Funds Accumulated in Current and Last 5 Years 6,487,986$ Funds Held Longer than 5 Years -$
Projects Programmed for Impact Fees -$
Project
#D e s c r i p t i o n
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 2022-23
Impact Fee
Expenditure
Affordable Housing Fee (Fund 565)
Affordable Housing Fee
Since Inception Date Through June 30, 2023