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16. Devel. fee impact report City Hall 10300 Torre A venue Cupertino, CA 95014-3255 Telephone: (408) 777-3220 Fax: (408) 777-3366 CITY OF CUPEIUINO DEPARTMENT OF ADMINISTRATIVE SERVICES Agenda Item No. I itJ Meeting Date: March 6, 2007 SUBJECT AND ISSUE Accept the City's development impact fee report for the year ending June 30, 2006. BACKGROUND The Government Code requires that the City make available for public review the City's three development impact fees: the below market rate housing mitigation fee, the park dedication in- lieu fee, and the "Heart of the City" planning fee. The attached report, which is currently available on the City's website, provides information on amounts collected, spent, and available. This report was previously presented at the February 20, 2007 Council meeting. At that meeting, staff was asked to report back about the $67,000 that was reportedly spent on a teachers housing assistance study, using housing mitigation funds. I must correct the information to say that the funds were spent on the CDBG Program Consolidated Plan and the BMR housing mitigation in- lieu fee study. The attached report reflects the corrections. RECOMMENDATION Accept the City's development impact fee report for the year ending June 30, 2006. Submitted by: $-~ David Woo Finance Director Approved for submission: -~ David W. Knapp City Manager Printed on Recycled Paper I ~-I CITY OF CUPERTINO DEVELOPMENT FEE REPORT FISCAL YEAR ENDING JUNE 30, 2006 1. Below Market Rate Housing Mitigation fee (A) Description and Amount: An in-lieu fee collected on residential, office, industrial & R&D development in order to address impact on affordable housing. Fee is $1.15 per sq ft on residential development and $2.25 per sq ft on office, industrial & R&D development. (B) Amount collected in FY 05/06 343,543 (C) Beginning of year balance End of year balance 818,296 980,010 (D) Interest earned 29,368 (E) Expenditures: CCS affordable housing placement 70k, Project Sentinel rental mediation 25k, CDBG program consolidated plan and housing mitigation in-lieu fee study 67k, and administrative costs 40k. 2. Park Dedication fee (A) Description: Fees collected from developers in lieu of providing more parks in the City. (B) Amount collected in FY 05/06 657,450 (C) Beginning of year balance End of year balance 181,901 40,658 (D) Interest earned 10,222 (E) Expenditure: McClellan ranch building improvement $151 k (F) Transfer to general fund of $657k to pay back advance on parkland acquisition. 3. Stevens Creek Blvd "Heart of the City" specific plan fee (A) Permit applicants along Stevens Creek Blvd corridor pay a $0.044 per sq-ft based fee to reimburse City for the $94,929 cost of the 1994 specific plan for the central area of the City. (B) Amount collected in FY 05/06 18,427 (C) Beginning of year balance End of year balance 39,037 57,846 (D) Interest earned (estimate @ 4.15%) 382 (E) Expenditure: Costs incurred in 1994 to prepare "Heart of the City" specific plan. (~ ~~