CC 11-21-2023 Item No. 2 Mitigation Fee Act - Annual & FY 2022-2023_Written CommunicationsCC 11-21-2023
Item No. 2
Mitigation Fee Act - Annual
& Five-Year Report for FY
2022-2023
Written Communications
From:Kitty Moore
To:City Clerk; Pamela Wu; Kirsten Squarcia
Subject:Questions and Written Communications for Item 2 CC Nov 21 Agenda
Date:Monday, November 20, 2023 9:12:10 AM
Attachments:Pages from Written Communications (Updated 11-08-2023).pdf
Dear City Clerk and Manager,
Attached please find my questions which are also written communications for Item 2 City Council
Agenda for November 21. They are from the November 7, 2023 meeting this item was postponed
from. Many of the questions are simple budget labeling questions to help readers follow along, some
questions were answered in the pre-meeting but I would like the public to know the answers as well,
and some questions needed more information.
Thank you very much!
Kitty Moore
Kitty Moore
Councilmember
City Council
KMoore@cupertino.gov
(408) 777-1389
Attachments:
A - Report of City-wide Receipts Disbursements and Cash Balances June 2022 (1).pdf
June 30, 2023 Cash Balances A Report of City-wide Receipts Disbursements and Cash Balances June 2023.pdf
Dear City Clerk,
Please include the following email and the attachments for Agenda Item 11 which I would like pulled
from Consent.
AB 1600 requires that both general law and charter cities account for every fee that they collect
under its terms. Funds collected for each capital facility or service shall be deposited in
separate accounts and not commingled with any other funds for other impact fees. (Gov.
Code § 66006(a).) While funds are accruing for individual capital facilities, the city must
keep track of each fund and provide an annual report. (Gov. Code § 66006(b).) If the
city fails to accurately account for the collected fees, the city can be required to refund
the fees. (Gov. Code § 66001(d).)
The City Council must make these findings:
a. The purpose of the development impact fees has been identified.
b. There is a continued need for the improvements and a reasonable
relationship between the fees and the impacts of development for which
the fees are collected.
c. The sources and amounts of funding anticipated to complete the financing
of the improvements have been identified.
d. The approximate dates for funding improvements have been identified.
I have the following questions/comments:
CMC 14.05 references a Park Maintenance Fee which would be deposited in the Park and
Recreational Facilities Acquisition and Maintenance Fund. I think this would qualify as a
Development Impact Fee and the CMC indicates that a nexus study was done, however I am
unable to locate this fund in the report and need assistance.
https://codelibrary.amlegal.com/codes/cupertino/latest/cupertino_ca/0-0-0-
88074#JD_Chapter14.05
14.05.040 Requirements–General. Any person who proposes to erect or construct any
building or structure for which a building permit is required by the City, or who seeks a
use permit or architectural and site approval from the City, must pay a fee, as
determined under the provisions of this chapter, for the establishment, maintenance
and rehabilitation of parks and recreation facilities within the City. Said fee shall be a
condition precedent to the issuance of any required building permit, planned
development permit, use permit, or architectural approval.
This fund would be separate from fund 280. Is that correct?
CMC 13.08 Park Land Dedication Fee has a matching “Park dedication in-lieu fee fund” which I
believe is fund 280 “Park Dedication,” is this correct and may the fund name be made to
match the CMC wording?
The Lawrence Mitty purchase of about $3M does not appear to be reflected in the
report, please help me locate it.
CMC 14.02 Transportation Impact Fee Program has a matching TIF Account which I believe is
fund 271 Traffic Impact, is this correct and may the fund names be something like
Transportation Impact Fee?
CHAPTER 19.148: REQUIRED ARTWORK IN PUBLIC AND PRIVATE DEVELOPMENTS has an in
lieu of payment for developments which appears to qualify as an AB 1600 Development
Impact Fee. The City did collect funds from Westport for this fund. Because the fund has a
codified, intended purpose it should probably have a separate fund in the budget and appear
in the AB 1600 report? I noticed that Union City has an art fund in their AB 1600 report, for
example.
19.148.090 In Lieu Payment for Artwork is Discouraged.
In some instances the placement of artwork on a particular property may not be feasible.
The developer or property owner may apply to the Arts and Culture Commission for an in
lieu payment alternative on projects that lack an appropriate location for public art, although
such alternative is strongly discouraged. In such cases, an in lieu payment of 1.25% of the
construction valuation may be made to the City, pursuant to the approval authority
provisions of Cupertino Municipal Code Chapter 19.12.030.
CMC 19.172 Below Market Rate Housing Program, I believe is fund 265 BMR Housing, does
not have the fees listed by Ordinance which some other cities do, or the name of the account
the fees would go into, it does however reference the Residential Housing Mitigation Program
rules and regulations. Would it be better to have the fee and fund name codified?
Fund 215 Storm Drain AB 1600 is another fund which is not codified however, was adopted by
Resolutions 633 and 4422 from 1962 and 1977 per Attachment A for this agenda item. The
fee costs appear to still be based off of 1977 values without update? While the city does have
two storm drain fees in the CMC, it would seem that the Development Impact fee needed to
be reviewed if the fees truly haven’t been updated since 1977.
The 2018 Storm Drain Master Plan is here:
https://records.cupertino.org/WebLink/DocView.aspx?
id=731252&dbid=0&repo=CityofCupertino
Attachment A which is the City’s AB 1600 report, has multiple, unique, Public Works Projects
funded by Conditions of Approval of various past projects. Some of the projects have changed
since last year’s report, such as TM-2012-04 which used to state it was for Rodriguez and
Pacifica but now states Stevens Creek Blvd. Class IV bikeway. Additionally, I could not locate
any of these unique funds in the city financial reports to verify there is no commingling.
The June 30, 2022 and June 30, 2023 Fund Balances are included as attachments. These
balances are off in all instances from the amounts shown in the AB 1600 report. Where is the
City getting the balance numbers from and in what bank account is the interest being derived
from? Are we to assume these funds are in the Chandler account or elsewhere?
Thank you,
Kitty Moore
Kitty Moore
Councilmember
City Council
KMoore@cupertino.gov
(408) 777-1389
June 2022 Report of City‐wide Receipts, Disbursements, and Cash Balances
Cash and Investments
Beginning Balance Ending Balance
Fund Type Fund Number/Name as of May 31, 2022 Receipts Disbursements Journal Adjustments as of June 30, 2022
General Fund 100 General Fund 119,250,480 9,541,698 (4,962,941) (580,913) 123,248,325
General Fund 130 Investment Fund (1,200) ‐ ‐ ‐ (1,200)
Special Revenue Funds 210 Storm Drain Improvement 2,351,326 ‐ (11,218) ‐ 2,340,108
Special Revenue Funds 215 Storm Drain AB1600 1,855,315 7,097 ‐ ‐ 1,862,412
Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 981,529 575,866 (100,384) (103,792) 1,353,218
Special Revenue Funds 260 CDBG 526,002 ‐ (73,705) ‐ 452,297
Special Revenue Funds 261 HCD Loan Rehab 232,280 ‐ ‐ ‐ 232,280
Special Revenue Funds 265 BMR Housing 6,045,158 3,350 (52,803) (25,652) 5,970,054
Special Revenue Funds 270 Transportation Fund 12,670,077 224,692 (319,128) (204,168) 12,371,473
Special Revenue Funds 271 Traffic Impact 750,695 ‐ ‐ ‐ 750,695
Special Revenue Funds 280 Park Dedication 22,115,785 ‐ (35,249) ‐ 22,080,536
Special Revenue Funds 281 Tree Fund 138,323 ‐ ‐ ‐ 138,323
Debt Service Funds 365 Public Facilities Corp 2,284,850 ‐ ‐ (2,278,000) 6,850
Capital Project Funds 420 Capital Improvement Fund 30,275,814 110,000 (520,657) ‐ 29,865,158
Capital Project Funds 427 Stevens Creek Corridor Park 174,018 ‐ ‐ ‐ 174,018
Capital Project Funds 429 Capital Reserve* 9,546,568 ‐ ‐ ‐ 9,546,568
Enterprise Funds 520 Resource Recovery 6,208,920 217,055 (159,454) (84,641) 6,181,879
Enterprise Funds 560 Blackberry Farm 1,260,849 539 (62,849) 47,274 1,245,812
Enterprise Funds 570 Sports Center 2,326,278 ‐ (346,865) 81,553 2,060,966
Enterprise Funds 580 Recreation Program 3,454,398 11,545 (129,012) 12,741 3,349,672
Internal Service Funds 610 Innovation & Technology 1,809,088 ‐ (343,869) 736,187 2,201,406
Internal Service Funds 620 Workersʹ Compensation 3,947,638 ‐ (4,231) 73,109 4,016,516
Internal Service Funds 630 Vehicle/Equip Replacement 865,973 ‐ (185,307) 426,124 1,106,790
Internal Service Funds 641 Compensated Absence/LTD 691,266 ‐ 790 (2,238) 689,817
Internal Service Funds 642 Retiree Medical (3,732) ‐ (114,486) (3,720) (121,938)
Total 229,757,697$ 10,691,842$ (7,421,366)$ (1,906,137)$ 231,122,036$
* For reporting purposes, this fund rolls up/combines with Fund 420
Printed July 20, 2022
June 2023 Report of City‐wide Receipts, Disbursements, and Cash Balances
Cash and Investments
Beginning Balance Ending Balance
Fund Type Fund Number/Name as of May 31, 2023 Receipts Disbursements Journal Adjustments as of June 30, 2023
General Fund 100 General Fund 134,781,301 7,318,800 (5,533,486) 91,789 136,658,405
General Fund 130 Investment Fund 189,996 ‐ ‐ ‐ 189,996
Special Revenue Funds 210 Storm Drain Improvement 2,140,100 ‐ ‐ ‐ 2,140,100
Special Revenue Funds 215 Storm Drain AB1600 1,872,123 6,696 ‐ ‐ 1,878,819
Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 844,761 559,840 (99,032) ‐ 1,305,569
Special Revenue Funds 260 CDBG 618,683 1,324 (1,367) ‐ 618,639
Special Revenue Funds 261 HCD Loan Rehab 222,300 ‐ ‐ ‐ 222,300
Special Revenue Funds 265 BMR Housing 5,331,748 30 (35,086) ‐ 5,296,692
Special Revenue Funds 270 Transportation Fund 11,406,350 298,694 (150,218) ‐ 11,554,826
Special Revenue Funds 271 Traffic Impact 766,576 ‐ ‐ ‐ 766,576
Special Revenue Funds 280 Park Dedication 18,678,878 30,000 (1,980) ‐ 18,706,898
Special Revenue Funds 281 Tree Fund 76,299 962 ‐ ‐ 77,261
Debt Service Funds 365 Public Facilities Corp 2,322,250 ‐ ‐ (2,315,400) 6,850
Capital Project Funds 420 Capital Improvement Fund 24,939,898 53,333 (478,698) ‐ 24,514,534
Capital Project Funds 427 Stevens Creek Corridor Park 158,146 ‐ ‐ ‐ 158,146
Capital Project Funds 429 Capital Reserve* 13,953,210 ‐ ‐ ‐ 13,953,210
Enterprise Funds 520 Resource Recovery 5,466,411 134,397 (179,630) ‐ 5,421,178
Enterprise Funds 560 Blackberry Farm 890,349 1,471 (69,793) 67,105 889,131
Enterprise Funds 570 Sports Center 1,788,594 ‐ (267,308) 196,281 1,717,567
Enterprise Funds 580 Recreation Program 3,581,479 2,659 (123,042) 110,197 3,571,293
Internal Service Funds 610 Innovation & Technology 3,181,017 ‐ (316,657) ‐ 2,864,360
Internal Service Funds 620 Workersʹ Compensation 3,813,808 ‐ (3,302) ‐ 3,810,507
Internal Service Funds 630 Vehicle/Equip Replacement 1,240,360 ‐ (173,125) ‐ 1,067,235
Internal Service Funds 641 Compensated Absence/LTD 790,565 ‐ 794 ‐ 791,359
Internal Service Funds 642 Retiree Medical (1,250,810) ‐ (114,597) ‐ (1,365,407)
Total 237,804,393$ 8,408,206$ (7,546,527)$ (1,850,028)$ 236,816,045$
* For reporting purposes, this fund rolls up/combines with Fund 420
Printed July 06, 2023
For more information on funds, please see cupertino.org/fund‐structure