Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2024 Page 1 of 6 Rev: 7/27/2023
RESOLUTION NO. 25-9415
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA,
ACCEPTING THE AB1600 REPORT ON DEVELOPMENT IMPACT
FEES FOR FISCAL YEAR ENDED JUNE 30, 2024 AND MAKING
FINDINGS REGARDING THE CONTINUING NEED FOR
UNEXPENDED BALANCES OF IMPACT FEES AS OF JUNE 30,
2024
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 nine (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 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 2023 -24 in accordance with AB1600, “AB1600 Report on Development Impact Fees f or Fiscal Year ended June 30, 2024,”; //
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Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2024 Page 2 of 6 Rev: 7/27/2023
WHEREAS, this report includes (1) the beginning and ending balances of each separate fund containing impact fees; (2) the amount of fees collected and the interest earned for the year; (3) the amount of expenditures and refunds made in the year; (4) the percentage of expenditures paid for by fees; and (5) a description of the type of fees. The amount of each of these AB1600 fees for FY 2023-24 is reflected in the City’s Municipal Fee Schedule, previously adopted by the City Council;
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 20, 2024;
WHEREAS, AB1600 requires the City to make to do the following every five (5) years with respect to any portion of the fees remaining unexpended or uncommitted after a period of five (5) years: 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 $3,134,582 representing fees and accrued interest collected for traffic mitigation remains unexpended five (5) or more years after their initial deposit;
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 $ 159,214 representing fees and accrued interest collected for storm drainage mitigation remains unexpended five (5) or more years after their initial deposit;
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Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2024 Page 3 of 6 Rev: 7/27/2023
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 $21,913,625 representing fees and accrued interest collected for sewer conveyance mitigation remains unexpended five (5) or more years after their deposit; and WHEREAS, the City desires to make the findings required by law with respect to these unexpended fees.
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, 202 4 (“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.
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Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2024 Page 4 of 6 Rev: 7/27/2023
B. The portion of the $8,991,018 development fee in the Traffic Mitigation Fund that was at least five (5) years old as of June 30, 202 4, totals $3,134,582. 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 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 $16,499,940. Remaining appropriations totaling $8,145,714 from the other sources are as follows: Reimbursable Grants $248,235; Santana Row Settlement $1,145,433, Vehicle Registration Fee $1,201,722; Bonds Proceeds $1,451,057; Measure B $249,013; Gas Tax $1,704,032; Electric Utility Contribution $1,059,409; Water Utility Contribution $23,959, Sewer Utility Contribution $19,935, Regional Traffic Mitigation Fee $3,301,046; General Fund $180,000; and Developer Contributions $766,700. All these amounts have been received and are available except the Reimbursable Grants and Measure B.
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. //
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Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2024 Page 5 of 6 Rev: 7/27/2023
D. The portion of the $300,760 development fee in the Storm Drain Impact Fee Fund that was at least five (5) years old as of June 30, 202 4, totals $159,214. 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 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 s identified in Exhibit A which are 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 from the CPR is $542,829.
E. The Sanitary Sewer Conveyance Fee was adopted in fiscal year 2006-07 to address Sewer Main capacity deficiencies resulting from increased development. //
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F. The portion of the $55,815,618 development fee in the Sanitary Sewer Conveyance Fees Fund that was at least five (5) years old as of June 30, 2024, totals $21,913,625 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 $309,718.
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 28TH DAY OF JANUARY, 2025, BY THE FOLLOWING VOTE:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
Attachments incorporated by reference:
Chahal, Cox, Gonzalez, Hardy, Jain, and Park, and
Mayor Gillmor
None
None
None
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ATTEST: ... N ..... O=R-A-P-IM~E=N~T-E~L~, ....,M_M_C ____ _
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
1. AB 1600 Report on Development Impact Fees FYE June 30, 2024 Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2024 Rev: 7/27/2023
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2024
1 BACKGROUND
Cities and counties often charge fees on new development to fund public improvements, public amenities and public services. For example, Traffic Mitigation Fees 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 forth 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 projects. Government Code Sections 66000- 66025 apply to developer fees established, increased or imposed on or after January 1, 1989, and generally sets forth four broad requirements:
1. A local jurisdiction must follow the process set forth 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 developer 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 required under paragraph 3, then the city or county must go through a refund procedure.
The Traffic Mitigation Fee, Sanitary Sewer Outlet Fee, 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 Henry Drive I nfrastructure Impact Fee 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 amount of each of these development impact fees for fiscal year 2023-24 is reflected in the City’s Municipal Fee Schedule, previously adopted by the City Council. The adopted City’s Municipal Fee Schedule for fiscal year 2023-24 is available at:
https://www.santaclaraca.gov/home/showpublisheddocument/80140/638458521893270000 . A s required
by law, these fees are segregated and accounted for 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 after the end of each fiscal year. Accordingly, the following report is presented to the City Council for review.
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2024
2 ANALYSIS
Utilizing the first in, first out (FIFO) accounting method – where the initial revenue received is the first expended, staff analyzed the year-end balances for the fiscal year 2023-24. 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 Adopted Biennial Capital Improvement Program Budget. 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 improvements or programs to mitigate 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 study 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 development, 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 generation rates in the latest ITE Trip Generation Manual.
The fee is automatically adjusted 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 F ee from fiscal year 2019-20 through fiscal year 2023-24.
Fund 123 & 533 2019-20 2020-21 2021-22 2022-23 2023-24(1) Beginning Balance 10,353,046$ 10,448,972$ 10,505,590$ 10,938,618$ 11,413,512$ Developer Fees 182,518 728,208 978,860 1,092,092 (165,694) Interest Income 200,204 152,901 165,723 177,957 188,580 Expenditures (286,796) (824,491) (711,555) (795,155) (2,445,380) Ending Balance 10,448,972$ 10,505,590$ 10,938,618$ 11,413,512$ 8,991,018$ (1) The negative developer fees in FY23-24 is due to a $474,695 voluntary developer contribution received in December 2018 being reclassified out of the Traffic Mitigation Fund in FY23-24.
During the fiscal year 2023-24, the City collected $309,001 in traffic mitigation fees and reclassified a $474,695 voluntary developer contribution received in December 2018. As a result, the developer fees
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2024
3 reported in fiscal year 2023 -24 totaled a negative $165,694. The City earned $188,580 in interest, and expended $2,455,380 on various projects. The ending balance of the Traffic Impact Fees available at the end of fiscal year 2023-24 is $8,991,018 with $3,134,582 being held for over five years. Exhibit A identifies the projects that will make use of all unspent fees held over five years.
There is no impact on City resources since all qualified impact fees held by the City for over five years are either spent or committed, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000 and subsequent section.
Sanitary Sewer Outlet Fee
The Sanitary Sewer Outlet Fee is collected from developers to construct public sanitary sewer facilities.
City Council passed Ordinance 1778 on December 3, 2002 which created the sanitary sewer outlet charge which is used for the acquisition, construction, reconstruction, maintenance, and operation of off-site sewerage facilities, and to repay principal and interest on bonds issued for the construction and reconstruction of such sewerage facilities. The fee shall automatically adjust for inflation annually at the start of each fiscal year, based on the latest Engineering News Record Construction Cost Index.
The following table summarizes the activity for the Sanitary Sewer Outlet Fees from fiscal year 2019-20 through fiscal year 2023-24.
Fund 594 2019-20 2020-21 2021-22 2022-23 2023-24
Beginning Balance (1,588,864)$ (1,288,884)$ (1,089,598)$ (669,142)$ 131, 522 $ Developer Fees 299,980 199,286 420,456 798,692 (3,133) Interest Income - - - 1,972 2, 518 Ending Balance (1,288,884)$ (1,089,598)$ (669,142)$ 131,522$ 130, 907 $
In fiscal year 2023-24, the City collected $3,924 in developer fees, and issued a refund of $7,057, resulting a net negative balance of $3,133 in developer fees . The City earned $2,518 in interest, and no project expenditures were incurred. The remaining balance of Sanitary Sewer Outlet Fees at the end of fiscal year 2023-24 is $130,907.
There is no impact on City resources since all qualified impact fees collected by the City have been spent, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Sanitary Sewer Connection Fee
The Sanitary Sewer Connection Fee was adopted to improve and expand the sewer collection syst em.
City Council passed Ordinance 1428 on August 25, 1981 which created the sanitary sewer connection fee which is charged whenever a property is initially connected or requires an addition of a new connection to the sanitary sewer system. The fee is charged based on type of dwelling unit for residential (single family, duplex, condominium, etc.) and non- residential which charges based on connection size. The fee shall automatically adjust for inflation annually at the start of each fiscal year, based on the latest Engineering News Record Construction Cost Index.
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2024
4 The following table summarizes activity for the Sanitary Sewer Connection Fee from fiscal year 2019-20 through fiscal year 2023-24.
Fund 594 2019-20 2020-21 2021-22 2022-23 2023- 24
Beginning Balance (87,737,999)$ (116,641,597)$ (114,296,942)$ (145,899,755)$ (154,958,451)$ Developer Fees 1,124,123 1,007,031 1,389,253 2,610,881 307,449 Expenditures (30,027,721) (5,488,096) (37,645,683) (13,852,060) (13,099,087) Refunded Expenditures - 6,825,720 4,653,617 2,182,483 - Ending Balance (116,641,597)$ (114,296,942)$ (145,899,755)$ (154,958,451)$ (167,750,089)$
In fiscal year 2023-24, the City collected $ 307,449 in developer fees and expended $13,099,087 on the San Jose/Santa Clara Regional Wastewater Facility construction project . As of June 30, 2024, the accumulative deficit in Sanitary Sewer Connection Fee is $1 67,750,089. To address the deficit in the capital projects funded by Sanitary Sewer Connection Fee s, transfers were made within the Sewer Enterprise Fund.
There is no impact on City resources since all qualified impact fees held by the City have been spent, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000- 66003.
Sanitary Sewer Conveyance Fee
The Sewer Conveyance Fee was approved by City Council in June 2007 and is intended to mitigate development impacts to the City’s sanitary sewer conveyance system resulting from increases in the sanitary sewer discharges. The amount of Sanitary Sewer Conveyance Fee is based directly on the potential sewer discharge volumes of the proposed land uses. The fee was based on a Sanitary Sewer Capacity Assessment Report 2006, and subsequent update in 2016. The basis of Santa Clara’s sewer conveyance fee is sewer flow rate generated by a new development. The fee is calculated by dividing the total cost of the capacity improvement projects in the Sanitary Sewer Master Plan or its predecessor reports by the total projected sanitary sewer flow rate generated by future developments, which results in a “per gallon per day (GPD)” fee amount. The per GPD fee multiplied by the estimated sanitary sewer flow rate (GPD) generated by a new development is the sanitary sewer conveyance fee for that development.
The following table summarizes the activity for the Sanitary Sewer Conveyance Fees from fiscal year 2019-20 through fiscal year 2023-24.
Fund 594 2019-20 2020-21 2021-22 2022-23 2023-24
Beginning Balance 34,179,296$ 38,232,186$ 39,419,207$ 44,853,964$ 54,098,272$ Developer Fees 4,079,586 3,126,854 5,214,338 9,053,180 1,110,240 Interest Income 705,177 559,621 720,262 811,032 1,090,180 Expenditures (731,873) (2,499,454) (499,843) (619,904) (483,074) Ending Balance 38,232,186$ 39,419,207$ 44,853,964$ 54,098,272$ 55,815,618$
The developer fees of $1,110,240 along with interest income of $1,090,180 were part ly offset by expenditures of $483,074 in fiscal year 2023-24. The net change yielded a current balance of
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2024
5 $55,815,618, out of which $21,913,625 has been held for over five years . Exhibit A outlines 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 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 storm drainage that results either directly or indirectly from development projects. The Storm Drain Fee is codified in the Santa Clara City Code Section
17.15.220 Sanitary S ewer and Storm Drains and was created for the purpose of defraying the estimated costs of constructing planned drainage facilities for removal of surface and storm waters from local drainage areas. The fee is charged based on the amount of acreage being developed with a project. 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 Storm Drain Fees from fiscal year 2019-20 through fiscal year 2023-24.
Fund 535 2019-20 2020-21 2021-22 2022-23 2023-24
Beginning Balance 586,578 $ 613,299 $ 650,435 $ 423, 110 $ 433,968 $ Developer Fees 15,409 27,903 33,450 4,352 6,119 Interest Income 11,312 9,233 6,794 6,506 5,784 Expenditures with Prior Year Adjustment - - (267,569) - (145,201) Ending Balance 613,299 $ 650,435 $ 423,110 $ 433, 968 $ 300,670 $
In the fiscal year 2023-24, the City collected $ 6,119 in developer fees, earned $5,784 in interest, and incurred expenditures of $145,201 on various projects . T he accumulative amount of Storm Drain Fees available at the end of fiscal year 2023-24 is $300,670 with $159,214 being 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 qualified impact fees held by the City for over five years 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 in 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 completed a Parks & Recreation Facilities Development Impact Fee Study in 2014 and in 2019 which were both reviewed and approved by the City Council after community and stakeholder public comment hearings. These reports provide the necessary findings required by the Mitigation Fee Act and Quimby Act for the adoption of this fee by Council resolution contained in the
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2024
6 Municipal Fee Schedule. These reports provide 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 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 types 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 acres. The current standard is 2.60 acres. (Quimby Act allows a 3.0 acres/1,000 resident standard).
The calculation tables are provided in the in -Lieu Fee Resolution adopted by Council , posted on the City website and incorporated into the Municipal 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 the activity for the Parks Mitigation Fee from fiscal year 2019-20 through fiscal year 2023-24.
Fund 532 2019-20 2020-21 2021-22 2022-23 2023-24
Beginning Balance 5,261,415$ 10,771,523$ 8,937,718$ 20,682,234$ 45,670,527$ Developer Fees 7,159,545 1,522,149 14,634,898 36,637,032 2,177,539 Interest Income 176,942 110,320 124,450 577,716 852,739 Expenditures (1,826,379) (3,466,274) (3,014,832) (12,226,455) (4,933,326) Ending Balance 10,771,523$ 8,937,718$ 20,682,234$ 45,670,527$ 43,767,479$
During the fiscal year 2023-24, the City collected $ 2,177,539 in Parks Mitigation Fees, earned $852,739 in interest, and incurred expenditures of $4,933,326 on various projects . The balance of the Parks Mitigation Fees as of June 30, 2024 is $43,767,479 with no fees being held for over five years.
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2024
7 There is no impact on City resources since all qualified impact fees held by the City for over five years are either spent or committed, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Tasman East Specific Plan Infrastructure Impact Fee
On November 13, 2018, the City Council adopted the Tasman East Specific Plan to guide the transition of an underutilized 45- acre industrial neighborhood east of the Great America Transit Center into a pedestrian-friendly, transit -oriented development, providing for the addition of 4,500 new residential units, 100,000 square feet of retail, and 10 acres of open space near transit and jobs. In coordination with developers within the specific plan area, the City established an Infrastructure Impact Fee for the specific plan area to create an equitable distribution of area -wide and common public infrastructure costs for all residential developments within the specific plan and to finance capital facility and infrastructure costs to serve these developments.
Ordinance No. 2026 Adding Subsection 17.15.350 to Chapter 15 of Title 17 of the Santa Clara City Code Regarding the Tasman East Specific Plan Infrastructure Impact Fee was adopted on November 17, 2020.
The following table summarizes the activity for the Tasman East Specific Plan Infrastructure Impact Fee from fiscal year 2019-20 through fiscal year 2023-24.
Fund 541 2019-20 2020-21 2021-22 2022-23 2023-24
Beginning Balance -$ -$ (170,921)$ 3,260,003 $ 5,960,739$ Developer Fees - - 3,465,453 4,411,858 335 Interest Income - - 5,896 75,296 118,993 Expenditures - (170,921) (40,425) (1,786,418) (136,404) Ending Balance -$ (170,921)$ 3,260,003 $ 5,960,739 $ 5,943,663$
In the fiscal year 2023-24, the City received $335 in developer fees, earned $118,993 in interest and incurred expenditure of $136,404 in project costs. The accumulative balance of the Tasman East Specific Plan Infrastructure Impact Fees at the end of fiscal year 2023-24 is $5,943,663 with no fees being held for over five years.
There is no impact on City resources since all qualified impact fees collected by the City have been spent, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Affordable Housing Fee
The Affordable Housing Fee was adopted to mitigate the impacts of new market -rate housing development and non-residential development on the need for affordable housing, in addition to assisting in meeting the City’s share of the region’s housing need and implementing the goals, policies and actions specified in the Housing Element of the general plan. City Council passed Ordinance 1974 on December 5, 2017 which established the affordable housing fee applicable to residential and nonresidential projects and to encourage the development of rental housing and as well as smaller units that may be more
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2024
8 affordable by design. The fees established are significantly lower than the amount needed to fully mitigate the impacts of the new for sale and rental resident projects and non -residential project on the need for affordable housing. The fees shall automatically adjust for inflation annually using the Engineering News Record McGraw-Hill Construction Weekly Building Index for San Francisco.
The following table summarizes the activity for the Affordable Housing Fee from fiscal year 2018-19 through fiscal year 2023-24.
Fund 565 2019-20 2020-21 2021-22 2022-23 2023-24
Beginning Balance -$ -$ 131,284$ 5,760,577 $ 6, 487,986 $ Developer Fees - 130,201 5,613,415 630,142 16,150 Interest Income - 1,083 15,878 97,267 31,068 Expenditures - - - - (4,944,484) Ending Balance -$ 131,284$ 5,760,577 $ 6,487,986 $ 1, 590,720 $
During the fiscal year 2023-24, the City collected $16,150 in developer fees and earned $31,068 in interest. The accumulative balance of Affordable Housing Fees as of June 30, 2024 is $1,590,720 with no fees being held for over five years.
There is no impact on City resources since all qualified impact fees collected by the City have been spent, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Patrick Henry Drive Infrastructure Impact Fee
On March 22, 2022, the City Council adopted the Patrick Henry Drive Specific Plan (Specific Plan) to guide the transition of an underutilized 74- acre industrial neighborhood bounded by Mission College to the south, Great America Parkway to the east, the Hetch -Hetchy right-of-way to the north, and Calabazas Creek to the west into a pedestrian -friendly, transit -oriented neighborhood. The Specific Plan contemplates two unique land use scenarios related to proposed residential units and office uses. The Specific Plan also incorporates approximately 310,000 square feet of neighborhood- oriented convenience retail and up to 14 acres of open space which will include a diverse network of public parks, publicly accessible green infrastructure, and private recreational spaces.
Ordinance No. 2046 Adding Subsection 17.15.360 to Chapter 15 of Title 17 of the Santa Clara City Code Regarding the Patrick Henry Drive Specific Plan Infrastructure Impact Fee was adopted on March 22, 2022.
In the fiscal year 2023-24, no activities were conducted for this impact fee.
PUBLIC NOTICE: Public notification was achieved by posting the availability of the report 15 days prior to the meeting, as required by Government Code Section 66006(b)(2).
Attachments:
Exhibit A: Summary of Development Impact Fees
9 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Streets and Highways (Fund 123 & 533)
FY 2022-23 Ending Fund Balance 11,413,512$
Fees Collected (165,694)
Interest Earned 188,580
Expenditures (2,445,380)
FY 2023-24 Ending Fund Balance 8,991,018$
Funds Accumulated in Current and Last 5 Years 5,856,436$ Funds Held Longer than 5 Years 3,134,582$
Projects Programmed for Impact Fees 8,661,449$
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 2023-24
Impact Fee
Expenditure
1217 Traffic Signal Management Software Upgrade/Replacement 2025 $ 3,372,871 100% 89% $ 3,000,942 $ 2,132,191 $ 868,751 $ 504,362 1218 Traffic Pre-Emptors 2025 1,445,259 100% 94% 1,358,104 647,831 710,273 139,230 1219 Traffic Signal Enhancements Ongoing 1,437,831 100% 54% 781,824 629,065 152,759 57,014 1220 Pedestrian and Bicycle Enhancement Facilities Ongoing 1,460,196 100% 96% 1,395,196 1,383,560 11,636 430 1232 Traffic Signal Interconnect Upgrade 2032 1,043,217 100% 100% 1,043,217 139,518 903,699 31,862 1234 Transportation Modeling Update Ongoing 266,700 100% 94% 250,000 147,971 102,029 18,540 1237 MCB/GAP Intersection Improvement Project 2025 12,988,606 100% 36% 4,735,310 2,183,001 2,552,309 352,881 1245 Benton Bike Lanes 2025 1,726,000 100% 14% 249,000 129,810 119,190 - 1246 Bassett and Laurelwwod Bicycle Lanes 2025 1,428,058 52% 29% 410,000 - 410,000 - 1251 HAWK Beacon on Scott and Harrison 2025 750,000 100% 100% 750,000 488,312 261,688 (810) 1259 Monroe Los Padres Traffic Signal Modification 2025 680,000 100% 19% 127,856 7,890 119,966 7,890 1261 Santa Clara School Access Improvements 2025 2,471,000 86% 54% 1,325,000 1,211,633 113,367 997,637 1272 TDA21 Bicycle Facilities Upgrade 2024 131,410 28% 28% 37,356 36,717 639 36,717 1274 Lafayette St Class IV Bike Lanes 2026 600,000 67% 3% 20,000 297 19,703 - 1275 De La Cruz Boulevard Class IV Bikeway Study 2024 250,083 80% 44% 110,083 52,906 57,177 46,952 1276 Monroe Street Class II Buffered Bike Lane Study 2024 263,700 97% 47% 123,700 90,112 33,588 86,072 1277 Walsh Avenue Class IV Bikeway Study 2024 301,708 87% 42% 126,708 83,778 42,930 78,020 1280 MCB Class IV Bike Lanes 2025 65,000 83% 83% 53,877 - 53,877 - 1282 Traffic Impact Fee Nexus Study Update 2026 300,000 100% 100% 300,000 19,000 281,000 19,000 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 1,234,157 67% 8% 102,653 5,726 96,927 - 1386 Santa Clara Citywide ITS Project 2 2025 1,304,198 77% 62% 804,198 69,583 734,615 69,583 Totals $ 34,620,290 18,120,350$ 9,458,901$ $ 8,661,449 $ 2,445,380 Traffic Mitigation Fee (Fund 123 and 533)
Traffic Mitigation Fee
Since Inception Date Through June 30, 2024
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, 2024
Sanitary Sewer Outlet Fee (Fund 594)
FY 2022-23 Ending Fund Balance 131,522$
Fees Collected (Refunded) (3,133)
Interest Earned 2,518
FY 2023-24 Ending Fund Balance 130,907$
Funds Accumulated in Current and Last 5 Years 130,907$
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, 2024
Sanitary Sewer Connection Fee (Fund 594)
FY 2022-23 Ending Fund Balance (154,958,451)$
Fees Collected 307,449
Expenditures (13,099,087)
FY 2023-24 Ending Fund Balance (167,750,089)$
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
A
ll Funding
Sources
Funding
Status
% Impact
Fee Funded
Total Impact
Fee
A
ppropriation
Total Impact Fee
Expenditures
Impact Fee
Appropriation
R
emaining (1)
FY 2023-24
Impact Fee
E
xpenditure
1908 S.J.- S.C. Regional Wastewater Facility O ngoing $ 255,554,918 100% 39% $ 98,948,905 $ 98,948,905 $ - $ 13,099,087 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 Sanitary Sewer Connection Fee (Fund 594)
Sanitary Sewer Connection Fee
Since Inception Date Through June 30, 2024
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, 2024
Sanitary Sewer Conveyance Fee (Fund 594)
FY 2022-23 Ending Fund Balance 54,098,272$
Fees Collected 1,110,240
Interest Earned 1,090,180
Expenditures (483,074)
FY 2023-24 Ending Fund Balance 55,815,618$
Funds Accumulated in Current and Last 5 Years 33,901,993$ Funds Held Longer than 5 Years 21,913,625$
Projects Programmed for Impact Fees 22,579,186$
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 2023-24
Impact Fee
Expenditure
1909 Sanitary Sewer Capacity Improvements Ongoing $ 34,476,651 100% 100% $ 34,476,651 $ 11,897,465 $ 22,579,186 $ 322,772 1920 Sanitary Sewer Master Plan Update Ongoing 980,038 100% 49% 480,038 480,038 - 160,302 Totals $ 35,456,689 34,956,689$ 12,377,503$ $ 22,579,186 $ 483,074 Sanitary Sewer Conveyance Fee (Fund 594)
Sanitary Sewer Conveyance Fee
Since Inception Date Through June 30, 2024
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, 2024
Storm Drain Fee (Fund 535)
FY 2022-23 Ending Fund Balance 433,968$
F
ees Collected 6,119
Interest Earned 5,784
Expenditures Adjustment (145,201)
FY 2023-24 Ending Fund Balance 300,670$
Funds Accumulated in Current and Last 5 Years 141,546$
Funds Held Longer than 5 Years 159,124$
Projects Programmed for Impact Fees 159,124$
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 2023-24
Impact Fee
Expenditure
1831 Miscellaneous Storm Drain Improvements Ongoing $ 316,577 100% 32% 100, 000$ -$ 100,000$ $ - 1834 Storm Drain System Improvement Ongoing 451,320 100% 100% 451, 320 392,106 59,214 - 1835 Storm Drain Outfall Reconstruction Program Ongoing 1,673,000 100% 55% 917, 569 917,569 - 145,201 Totals 2,440,897$ 1, 468,889$ 1,309,675$ 159,214$ $ 145,201 Storm Drain Fee (Fund 535)
Storm Drain Fee
Since Inception Date Through June 30, 2024
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, 2024
Parks Mitigation Fee (Fund 532)
FY 2022-23 Ending Fund Balance 45,670,257$
Fees Collected 2,177,539
Interest Earned 852,739
Expenditures (4,933,326)
FY 2023-24 Ending Fund Balance 43,767,209$
Funds Accumulated in Current and Last 5 Years 43,787,209$ Funds Held Longer than 5 Years -$
Projects Programmed for Impact Fees 20,047,399$
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 2023-24
Impact Fee
Expenditure
3101 Park & Recreation Master Plan Ongoing 442,700$ 100% 84% 371,350$ 121,669$ 249,681$ 121,669$ 3102 Facility Condition Assessment Update Ongoing 400,000 100% 100% 400,000 - 400,000 - 3126 Patrick Henry Community Art Center Ongoing 75,000 100% 100% 75,000 55,426 19,574 55,426 3127 Parkland Acquisition Ongoing 10,525,560 100% 90% 9,509,570 - 9,509,570 - 3128 MFA Developer Reimbursement Project Ongoing 210,572 100% 100% 210,572 - 210,572 - 3133 Central Park Master Plan New Improvement 2027 2,691,175 100% 100% 2,691,175 262,031 2,429,144 89,895 3136 Westwood Oaks Park Playground Rehabilitation 2025 3,570,800 100% 100% 3,570,800 2,894,878 675,922 2,642,055 3181 Park Impact Fees Monitoring Project Ongoing 2,002,596 100% 72% 1,432,754 1,136,899 295,855 299,655 3183 Central Park Arbor Playground 2025 9,134,455 66% 48% 4,363,500 18,820 4,344,680 18,820 3184 Montague Park Enhancement 2025 7,858,340 100% 100% 7,858,340 6,852,411 1,005,929 821,601 3195 Henry Schmit Park Playground Rehabilitation 2026 510,000 100% 54% 275,000 - 275,000 - 3196 Central Park Aquatic Center Planning & Design 2026 917,000 100% 39% 358,000 226,216 131,784 226,216 3197 Parks Service Center Improvement 2028 800,000 100% 63% 500,000 312 499,688 - 3199 Park&Rec Engineering Management Ongoing 1,020,457 100% 64% 657,990 657,990 - 657,990 Totals 40,158,655$ 32,274,051$ 12,226,652$ 20,047,399$ 4,933,327$ Parks Mitigation Fee (Fund 532)
Parks Mitigation Fee
Since Inception Date Through June 30, 2024
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, 2024
Tasman East Specific Plan Infrastructure Impact Fee (Fund 541) FY 2022-23 Ending Fund Balance 5,960,739$
F
ees Collected 335
Interest Earned 118,993
Expenditures (136,404)
FY 2023-24 Ending Fund Balance 5,943,663$
Funds Accumulated in Current and Last 5 Years 5,943,663$ Funds Held Longer than 5 Years -$
Projects Programmed for Impact Fees 1,424,215$
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 2023-24
Impact Fee
Expenditure
4610 Tasman East Admin Study and Engineering Ongoing 375,354$ 100% 97% 363,522 $ 362,452$ 1,070$ 136,404$ 4611 Tasman East Developer Reimbursement Project Ongoing 3,194,861 100% 100% 3,194,861 1,771,716 1,423,145 - Totals $ 3,570,215 $ 3,558,383 $ 2,134,168 $ 1,424,215 $ 136,404 Tasman East Specific Plan Infrastructure Impact Fee (Fund 541) Affordable Housing Fee
Since Inception Date Through June 30, 2024
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, 2024
Affordable Housing Fee (Fund 565)
FY 2022-23 Ending Fund Balance 6,487,986$
Fees Collected 16,150
Interest Earned 31,068
Expenditures (4,944,484)
FY 2023-24 Ending Fund Balance 1,590,720$
Funds Accumulated in Current and Last 5 Years 1,590,720$ 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 2023-24
Impact Fee
Expenditure
16506 Civic Center Ongoing $ 4,944,484 100% 100% 4,944,484 - $ - $ 4,944,484 Affordable Housing Fee (Fund 565)
Affordable Housing Fee
Since Inception Date Through June 30, 2024