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HomeMy WebLinkAboutStaff Report 3.D 02/04/2013 cc is L,U A -en JewIte�v 43 .D RV w40 `rr IESa DATE: February 4, 2013 TO: Honorable Mayor and Members of the City Council through City Manager FROM: William Mushallo,,Finance Director Corey Garberolio, Accountant SUBJECT: Resolution Accepting the FY12 AB 1600 Development Impact Fee Report RECOMMENDATION It is recommended that the City Council approve the resolution accepting the 2011-2012 AB 1600 Development Impact Fee Report. BACKGROUND I The Mitigation Fee Act, Government Code ,§ 66000 el'seq., (the "Act") governs the establishment and administration of development impact fees paid.by new development projects for public facilities needed toserve new development: Fees must be separately accounted for and used for the specific purpose for which the fee was,imposed. The City's adopted development impact fees are identified and described in attachment 2. Expenditures are authorized through the annual Capital and Operating Budgets and the City's Capital :Improvement Program. The adopted City Budget is on file;with the City Clerk. DISCUSSION 1,The Mitigation Fee Act requires that the City prepare an annual accounting report of all fees subject to the Act (Attachment 2). This report must be made available to interested parties and The public at least,15 days prior to the time the report is presented at a City Council meeting for review by the Council pursuant to Government Code§66006(b)(2). The FY2011-2012 report was made available;to the public on the City of Petaluma website on January 17, 2013, and a copy of the report was mailed on January 17, 2013 to all persons who had requested mailed :notice relating to city fees. FINANCIAL IMPACTS There are no financial impacts directly related. to the recommended action. Due to the decline in development activities there are no direct expenditures for some of these funds. There are, however, fixed costs related to the administration and accounting of the development fees, which Agenda Revie City Attorney/jsn Finance Dire . / City Man ger have been reported as "City Administrative Costs"'and_arer incurred•regardless:of whether direct expenses have occurred. A,summary of all impact fee expenditures during FY2011-2012 is displayed in attachment 2. ATTACHMENTS 1. Resolution Accepting:the FY 12 AB 1600 Development Impact Fee Report 2. FY 12 AB 1600 Development Impact Fee Report. • ■ ATTACHMENT 1 RESOLUTION OF THE PETALUMA'CITY COUNCIL ACCEPTING THE FY 12 AB1600 DEVELOPMENT IMPACT FEE REPORT WHEREAS, the City of Petaluma imposes fees to mitigate the impacts of development, pursuant to Government Code '§§66000 et seq:; and WHEREAS, fees collected re deposited into a separate fund account for each type of development impact fee; and WHEREAS, the a description of each fee, its amount, and various information required by Government Code section 66006(b)(1) tor'be reported on an annual basis is set forth in the Development Impact Fee Report — Fiscal Year 2011;2012 attached hereto as Attachment 2 and incorporated herein by reference ("the Report"), as required by Government Code §66006(b)(1); and WHEREAS, the Report was made available to the public on the city's website on January 10, 2013; and WHEREAS, copies.of the Report were mailed on January 10. 2013 to all persons having requested notice of City actions'relating to fees on January 10, 2013; and WHEREAS, the City.Council has reviewed the Report; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma, that: 1. The recitals stated herein are true and correct and adopted as findings of the City Council. 2. The City Council has received and reviewed the,Development Impact Fee Report =Fiscal Year 2011-12 attached hereto as Attachment 2 and incorporated herein by reference'("the Report"). 3 Attachment 2 ;kL ,V.` e' •. ; , � 1 8 5 40 r't CITY OF PETALUMA, CALIFORNIA ANNUAL DEVELOPMENT IMPACT FEE REPORT FISCAL YEAR 2011-2012 1] City of Petaluma Annual Development Impact Fee Report Fiscal Year 2011-12 Background The Mitigation Fee Act, Government Code'SSsC66000 el.seq., (the"AcP')'governs the establishment and administration of development impact fees paid by new development.projects for public facilities.needed to serve new development.. Fees must be separately accounted for and used for the specific purpose for which the fee was imposed. The.City's adopted development impact fees are listed in the attached exhibits. Expenditures are authorized through the:annual Capital and Operating Budgets and the City's Capital Improvement Program. The annual adopted City Budget is on file with the.City Clerk. Annual Development Fee Reporting The Act requires that the City prepare an annual review of all development impact fees as defined in the Act and make a public report on the fees available to the public after the end of each fiscal year Government Code-§66006(b)(2) requires the report to be placed on an agenda for review at a public meeting not less than 15 days after the report is made available to the public. The Fiscal Year 2011-2012 report was made available to-the public on the City of Petalumawebsite on January 17, 2013; a copy of the report also was mailed to all persons who had requested mailed-notice relating to city fees on January 17, 2013. Excluded from this report are developer fees which are notsubject to the reporting requirements of the Act. For example,fees collected pursuant to the City's zoning powers,rather than pursuant to the Act, are in-lieu housing fees,the commercial linkage fee which is the`noh-residential equivalent of an in-lieu housing fee, public art in-lieu fees and two fees related to the Central Petaluma Specific Plan area. Water capacity fees and wastewater capacity fees are not development impact fees as defined in Sections 66006 and 66001 of the Act. The Quimby Act parkland acquisition fee for residential subdivisions is imposed pursuant to the Subdivision Map Act(Gov't. Code'§66477), and is also not included in the Section 66001 reporting requirement. The Storm Drainage Fee was last updated in l986,prior to the.January I; 1989 effective date of AB1600, but is nevertheless included in this report and findings for informational purposes. The city is also required to adopt by resolution certain findings for any fund accounts which contain unexpended funds as of the fifth,fiscalyear following the first deposit into-those funds and every five years thereafter. (Gov't. Code §66001(d).) In FY Id-12, no impact fee funds fall into this category and therefore no resolution has been adopted related to-,unexpended funds. The report is organized as follows: Exhibit A: A brief description'of the:purposes of each development impact fee and its authorizing legislation(Gov't. Code §66006(b)(1)(A).) Exhibit B; Summary of the July I,2011 beginning balance, annual fee revenue collected, interest earned, returned unused funds from projects„identificationiof public improvements on which fees were expended and the ending balance as ofJune 30, 2012 for each fee (Gov't. Code §66006(b)(1)(C)-(E).) Excess funds from capital project funds were returned to the originating revenue funds. The annual expenditures on each specific public improvement are listed, including the total percentage of the cost of the public 'improvement that wastfunded with development impact fees: In addition;to public improvement project costs, the City incuis costs to'ad'ministereach mitigation fee program and to prepare the annual reports and the_five-year compliance analysis also required by the Act. As shown in the mitigation_fee cost studies (or "nexus studies") which upport the various impactfees,ihe City charges administrative,and compliance costs at 3% ofthe program cost for each feeas;a program expense. The actual dollar cost for these expenditures is listed for each fee. No individual development impact fee fund has collected sufficient funds to construct all improvements covered by that fund as described in the nexus studies (Gov't. Code §66006(b)(1)(F).) Exhibit C: Identifies the amount,of each development impact fee„including the modifications which became effective August 27, 2012, when the City updated all development impact fees (Gov't. Code §66006(b)(I)(B).) Exhibit D: Identifies interfund-loans„transfers, refunds or reallocation of funds in lieu of refunds in Fiscal Year 2011-2012 (Gov't. Code §66006(b)(I)(G)-(H)): W Exhibit A City of Petaluma Development !impact Fee Summary Fee# Impact Fee Name Fee Authority Brief Description of the Type of Fee 1 Aquatic Center Reso. 2008-086 The Aquatic Center Facilities Impact Fee is to finance the portion of Facilities Impact Fee N.C.S.,•May.19, construction of an aquatic complex with a 50 meter lap pool and a 2008 4;500 square foot recreation pool that is related to the project's services to new development. 2 Community Center Reso. 2008=088, The Community'Center Facilities Impact Fee is to finance the Facilities Impact Fee N.C.S.,,May 19, expansion of community center facilities, including furniture and 2008 fixtures, to equip new community center facilities space required to reduce the impact of future development. 3 Fire Suppression Reso. 2008-088 The Fire Suppression Facilities Impact Fee is to finance specific fire Facilities Impact Fee N.C.S.,May 19, protection and emergency services facilities to reduce impacts caused 2008 by future development. 4 . Library Facilities Reso. 2008-090 The Library Facilities Impact fee is to provide funding for additional Impact Fee N.C.S., May 19, library facilities, furniture, fixtures and collection materials to reduce 2008 the impacts caused by future development. 5 Parkland Reso. 2008-092 The Parkland Acquisition Fee is imposed on development projects Acquisition Fee N.C.S., May 19, that ate not subject to the Quimby Act. It funds_acquisition of and 2008 payment for parkland necessary to maintain the standard established in the city s General Plan, based on a ratio of parkland acreage to population, including employees of new commercial development, as new residents and employees are added by new development. 6 Parkland Reso. 2008-093 The Parkland Development Fee funds public facilities which improve Development Impact N.C.S., May 19, neighborhood and community parklands as needed to serve new Fee 2008 development. 7 Open Space Reso. 2008-091 The Open Space Acquisition Fee funds acquisition of and payment for Acquisition Impact N.C.S:, May 19, open space necessary to maintain the city's standard established in its Fee 2008 General Plan based on a ratio of open space acreage to population, including employees of new commercial development, as new residents and employees are added by new development. 8 Law Enforcement Reso. 2008-089 The Law Enforcement Facility Fee funds the portion of construction of Facilities Impact Fee N.C.S., May 19, new law enforcement facilities, including a new police station and two 2008 communications towers, and acquisition of police vehicles and equipment, that is related to the need to serve new development. 9 Public Facilities Reso. 2008-094 The Public Facilities Impact Fee funds a proportionate share of City Impact Fee N.C.S., May 19, Hall renovation or relocation, corporation yard construction and VOIP 2008 and Wi-Fi•communications systems. It also funds additional computer technology and city vehicles to serve the added population and employees brought to the city by new development. 7 10 Storm Drainage Ord. 1530 ,The Storm Drainage Impact`Fee fundsthe'construction of storm Impact Fee N.C.S., eff."Sept. drainage improvements needed to control increases in run-off created 20, 1982;Ord.. by new.development`projects. The Storm Drainage Impact Fee was 1653'N':C.S., eff. ,adopted and 1St updated before the enactmentand effective.date of June 2, 1986 AB1600,,but is included in this report for informational purposes (Petaluma Municipal Code Chapter 17.30); Reso. 9751 N.C:S.,June 2, 1986 11 Traffic Development Reso.2008-095 The Traffic Development Impact Fee funds construction and Impact Fee N.C.S.;May 19, implementation of improvements to key elements of the citywide 2008 transportation system sufficient to accommodate future traffic'demand generated by new development. 8 Exhibit B Development Impact Fee Report Fiscal Year 2011-12 .Fund Balance Fee Interest Return Unused Expenditures!, Est%funded Ending Balance Fund:Fund Title/ProjectTitle 7/1/2011 Revenue Revenue, Funds Transfers by Impact Fees 6/30/2012 2110 Aquatic Center Facilities Impact Fees 17,508198 39;25].83 `236.22 - 5,545.55 51,451.48 e]6052012ImpactFee.Study 4,3]8.00 7.3% City administrative costs 1,227.55 100.0% 2120 Community Facilities Impact Fees ,1;069;817:04 29,020.00 3;864.18 - 8,338.60 1,094,362.62 e16052012 Impact Fee Study 6,318.00 10.7% City administrative costs Z020.60 100.0% 2121 Community Center Facilities-O8 (0.14) 136,997.82 438.14 - 4,109.93 133,325.89' City administrative costs 4,109.93 100.0% 2125 Fire Suppression Facilities Impact Fees 196;226.36. 91,449.12 1;534.57 40,000,00 49;261.47 279,948.58 el 6052012 Impact Fee Study 6,318.00 10.7% Cit •administrative costs 2,943.47 100.0% 2135 Library Facility Impact Fees 1 19;344.37 691534.34 1,013.06 - 6,554.03 183,337.74 e160520]2 Impact Fee Study 4,318.00 7.3% City administrative costs 2,236.03 100.0% 2140 Parkland Acq and Dev Impact Fees 1,641,452.43 108:666.23 6;224.65 307;000:00 313,859.99 1,749,483 32 e16052012 Impact Fee Study 2,000.00 3.4% City administrative costs 4,859.99 100.0% 2141 Parkland Acquisition Impact Fees-08 (1,605.75) 600;342.00 2;972158. - 22,32826 579,380.57 el 6052012 Impact Fee Study 4,318.00 7.3% Cit •administrative costs 18,010.26 100.0% 2142 PaklandDevelopment Impact Fees-08 - 405',955.18 1,029183 - 16,496.66 390,488.35 e16052012 Impact Tee Study 4,318.00 7.3% City administrative costs 12,178.66 100.0% 1 '2143 OpcnSpace Acquisition Impact Fees-08 (0:14) 184;644.79 , 147:36 - 9,907.34 174;884.67 e16052012 Impact Fee Study 4,318.00 7.3% City administrative costs 5,589.34 100.0% 2145, Law Enforcement Facilities Impact Fees 240,590.40 127;897.84 2,007.15 - 10,404.94 360,090.45 e 16052012 Impact Fee Study 6,318.00 10.7% City administrative costs 4,086.94 100.0% 2150 Public Facilities Impact Fees 68.499.81 25.034.00 517:32 - 7;122.02 86,929.11 el 6052012.Inpact Fee Study 6,321.00 10.7% City administrative costs 801.02 100.0% 2151 Public Facilities Impact Fees-08' - 130;129.00 475.01 - 3,903.87 126;700.14 City-administrative costs 3,903.87 100.0% 2155 Storm Drainage Impact Fees 3,833,896:67 15,098 48 12,324.60 997,017.78 1956,868.55 2,901,468:98 eI630 1307 Payran Flood Control 336,000.00 1020% c00500804 Storm Drainage.Improvements 17.78 Revenue Correction-Tfr to Traffic Impact 614,296.88 100.0% City administrative costs 9,571.67 100.0% 2156 Storm Drainage Impact Fees-08 344.52 11;813.00 ' 19.20 - 354.39 11,822.33 City administrative costs 354.39 100.0% Exhibit.B Fund Balance Fee lnterest RetumUnused Expenditures/ Est,%funded Ending Balance Fiord Fund Title/Project;Title 7/12011 Revenue Revenue Funds Transfers by Impact Fees 6/30/2012 2169 Traffic Impact Fees 1;.740,649:76 155;624.00 12,349:24 989;887.49 530,037.00 2,368,473 49 e16052012 Impact Fee.Study _ 10,000 00 17.0% c62101001 Lynch Creek Trail 3,000.00 0.3% c16101002 Pedestrian Crossing Sunrise/McDowell 20,590.61 Revenue Correction-Tfr to Traffic Impact-08 148,915 87 100.0% Revenue correction-Tfr fm Storm Impact 614,296,88 100.0% City administrative costs 13,121.13 100.0% 2161 Traffic Impact Fees-08 - 1,211,526.50 1,225.72 148,915.87 25,174.67 1,336,493 42 Revenue Correction-Tfr fin Traffic Impact 148,915:87 100.0% City administrative costs 25,174.67 100.0% • to Exhibit C Development Impact Fee Fee Type Land Use Type Fee,, Unit of Measurement City Facilities Single Family Residential $5,399 Unit Development Impact Fee(A) Multifamily Residential $3,635 Unit Accessory Dwelling $1,852 Unit Commercial $1,022 1,000 sq ft of building space Office $978 1,000 sq ft of building space Industrial $622 1,000 sq ft of building space A.-. ..- .•.. ' rir v �' i i. i .. i (RTY v46*v 9v'} P.°v hbic`11' ^� P it Open Space Single Family.Residential $379 Unit Acquisition Fee Multifamily Residential $255 Unit Accessory Dwelling $130 Unit Commercial $72 1,000 sq ft of building space Office $69 1,000 sq ft of building space Industrial $44 1;000 sq ft of building space 'g i1-: iL.v - sW JM eRPO � E -... 4 T_ 6( 4 _ _! Park Land,Acquisition Single FaMil)iResidential $1,616 Unit Fee (Quimby and Non- Quimby Act Projectsf" Multifamily Residential- I $1,093 Unit AccessoryDwelling 1 $554 Unit Commercial $306 1,000 sq ft of building space Office. $293 1,000 sq ft of building space Industrial $186 1,000)sq ft of building space a •U? ,; S' 'k?. . :7c �'s j;�. a..9 max ••w �' �. 'y# Park Land Single Family'Residential $5,212 Unit Development Impact .Fee Multifamily Residential $3,540 Unit Accessory'Dwelling $1,788 Unit Commercial $987 1,000 sq ft of building space Office $944. 1,000 sq ft of building space Industrial $601 1;000'sq ft of building space h " $ 1t w } #' r a',• F � r ,�, -, �r b n - �,�. art..-;.,a, #'- tmr. '.,'•n *• -•s I1 • Exhibit C Fee Type Land Use Type Fee Unit of Measurement Traffic Development Single Family Residential. $18,978 Unit Impact Fee Multifamily Residential $11,650 Unit AccessoiyDwelling $5,261 Unit Senior Housing.. $5,073 Unit Office $18,199 1,000 sq ft of building space Hotel/Motel $11,086 Room Commercial/Shopping $17,522 1,000 sq ft of building space Industrial/Warehouse $12,928 1,000 sq ft of building space Education $2,894 Student Institution $6,718 1,000 sq ft of building space n 7,7 ...."A4-:t o G11 atR r 3" je ".Mr'. 4;,dirk '�"�i,r. ,7"•+. (A) The City Facilities Impact Fee is a newly established.fee which consolidates the following six previous development impact fees into a single fee: Aquatic Center Facilities Impact Fee, Community Center Facilities Impact fee, Fire Suppression Facilities Impact Fee, Law Enforcement Facilities Impact Fee, Library Facilities Impact Fee, and the Public Facilities Impact Fee. (B) The Quimby Act applies only to fees.and/or dedications imposed on certain subdivisions subject to the Subdivision Act to fund land acquisition costs for-park or recreational purposes. *NOTE: The 2 adopted traffic impact fees reflect the cost differential between two design alternatives for the proposed Rainier Avenue Crosstown Connector..and'Highway 101 Interchange ("Caltrans Preferred"; "Locally Preferred"). Until a final determination is made on a design alternative, the City will collect the higher (the "Caltrans Preferred") of the 2 traffic impact fees on all. projects subject to that fee. Should the "Locally Preferred" design alternative ultimately be selected, the City will then charge the'"Locally Preferred" traffic impact fee amount and refund the incremental difference between the two fees to those projects that had already paid the"Caltrans Preferred"traffic impact fee. Exhibit C Storm Drain,Impact Fee Calculation of Fee Runoff computation: The increase in runoffcreated-bya given project is,calculated for a 100-year storm, utilizing runoff coefficients based.upon the portion of vegetated area to impervious surfaces, and expressed in acre-feet. Runoff coefficients are based upon the typeof use, slope of the land, and percent of vegetation coverage. Commercial/Industrial: Projects pay a fee of$30,000 per acre foot of-additional runoff. The amount of incremental runoff created is directly linked to the amount of landscaping provided. The maximum fee possible is $9,000 per acre of land. This would apply,to a project with 20% dr less landscaping. A project with25% landscaping can expect a fee of$6,750 per acre, 30% would pay $6,300 per acre,and so on. Residential: Projects pay a fee of$15,000 per acre foot of additional runoff. Incremental runoff is dependent upon the density of a project and the amount of landscaping and open space provided. A high density project with 20% or less area in landscaping could expect to pay $4,500 per acre..A type detached single-family subdivision would pay approximately $1,500 per acre. /5 Exhibit D Status of Interfund Loans,Transfers, Refunds or Reallocation of Funds Fiscal Year 2011-12 Interfund Loans, During FY 11-12 the Storm Drainage Impact Fee fund lent theiStorm Water Utility Operations fund $208,641 to cover storm water maintenance costs from January 1, 2012 through December31, 2014. Payment of principal and interest shall begin on June 30, 2015 and shall be made in 12 equal annual payments. This loan-is scheduled to be repaid by June 30, 2026. There were no Transfers, Refunds or Reallocation of Funds during FY 11-12. I�