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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