REPORT TO COUNCIL
SUBJECT
Title
Receive and File the FY 2024/25 Annual Status Report on Receipt and Use of Development Impact Fees and Adopt a Resolution Approving Findings Regarding Unspent Impact Fees and Find that the Action is Exempt from the California Environmental Quality Act (CEQA) Pursuant to Section 15378(b)(4) of the CEQA Guidelines
Report
BACKGROUND
To ensure that mitigation fees are spent in a timely manner and on projects for which they were collected, the State Legislature passed the Mitigation Fee Act (AB 1600). This Act applies to developer fees imposed or increased on or after January 1, 1989.
The Mitigation Fee Act (California Government Code Section 66000 et seq., "Act") requires local agencies to present an annual, consolidated report ("Annual Status Report") showing the receipt and use of all development impact fees collected by the agency that are subject to the Act. The Council must review the Annual Status Report within 180 days after the close of the fiscal year. The Mitigation Fee Act also requires that the local agency make certain findings every five years regarding any unspent impact fees. The City has opted to present the required five-year findings for all impact fees each year, along with the Annual Status Report. This approach increases efficiency and public transparency.
The City currently assesses four development impact fees: the Housing Mitigation/Impact Fee; the Sense of Place Fee; the Transportation Impact Fee; and the Park Dedication In-lieu Fee (referred to as Park Dedication Fee in this report). The first three are subject to the Mitigation Fee Act. The City's Park Dedication Fees are subject to the Mitigation Fee Act if assessed pursuant to Sunnyvale Municipal Code Chapter 19.74 (Zoning - Park Dedication Fees for Rental Housing Projects). However, Park Dedication Fees assessed pursuant to the Quimby Act (California Government Code Section 66477) and codified by the City in the Sunnyvale Municipal Code Chapter 18.10...
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