HomeMy WebLinkAboutStaff Report 3.B 4/7/2014Agenda Item #3.B
DATE: April 7, 2014
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: William Mushallo, Finance Director�—
_
Cindy Juandy, Senior Accountant
SUBJECT: Resolution Accepting the FYI AB 1600 Development Impact Fee Report
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution accepting the AB 1600
Development Impact Fee Report for the Fiscal Year ending June 30, 2013.
BACKGROUND
The Mitigation Fee Act, Government Code §§66000 et seg., (the "Act") 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
ani -mal adopted City Budget is on file with the City Cleric,
DISCUSSION
The Mitigation Fee Act requires that the City prepare an annual accounting report of all fees
subject to the Act. (Government Code §66006(b)(1)). In addition, the Mitigation Fee Act
requires that the fifth fiscal year following the first deposit into a development fee Rind, and
every subsequent five years, local agencies must make specified findings regarding unexpended
development fee funds. (Government Code § 66001(d)) Such findings are to be made in
connection with the annual development impact fee report. The required findings are contained
in the resolution included as Attachment 1 to this agenda report. The annual development impact
fee report for the year ending June 30, 2013 is included as Attaclument 2 to this agenda report.
The annual development impact fee 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 Govemunent Code §66006(b)(2). The FY2012-2013 report
was made available to the public on the City of Petaluma website on March 20, 2014; a copy of
Agenda Review:
City Attorney '� Finance Direor _. -Managers- �.,T--�
the report also was mailed on March 20, 2014 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. Depending on
development activities there may or may not be direct expenditures for some of these fiords.
There are, however, fixed costs related to the administration and accounting of the development
fees, which have been reported as "City Administrative Costs" and which occur regardless of
whether direct expenses have occurred. A summary of all impact fee expenditures during
FY2012-2013 is displayed in the attachment 2.
ATTACHMENTS
Resolution Accepting the FY 13 AB 1600 Development Impact Fee Report
FY 13 AB 1600 Development Impact Fee Report.
z
ATTACHMENT 1
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
ACCEPTING THE FISCAL YEAR 2013 DEVELOPMENT IMPACT FEE
REPORT PURSUANT TO AB -1600 (GOVERNMENT CODE SECTION 66000 ET
SEQ.) AND MAKING FINDINGS REGARDING UNEXPENDED
DEVELOPMENT IMPACT FEES
WHEREAS, the City of Petaluma imposes fees to mitigate the impacts of
development, pursuant to Government Code §§66000 et seg.; and,
WHEREAS, fees collected are deposited into a separate fiord 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) to be reported on an amoral basis is
set forth in the Development hmpact Fee Report — Fiscal Year 2012-2013 attached hereto
as Exhibit A 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
March 20, 2014; and,
WHEREAS, copies of the Report were mailed to all persons having requested
notice of City actions relating to fees on March 20, 2014; and,
WHEREAS, the City Council has reviewed the Report; and,
WHEREAS, the City of Petaluma has collected development impact fees in
certain funds, some of which fees will not be expended within five years from the first
deposit of fees into said accounts; and,
WHEREAS, Government Code section 66001(d) requires the city to make
certain findings every five years with respect to the portion of the funds remaining
unexpended five years after the first deposit of fees into said funds; and,
WHEREAS, as of June 30, 2013, the following fund accounts have funds
remaining unexpended more than five years after the first deposit of fees into said funds:
Fund 2120 Community Facilities; Fund 2135 Library Facilities; Fund 2140 Parkland
Acquisition and Development; and Fund 2145 Law Enforcement Facilities.
NOW, THEREFORE, BE IT RESOLVED 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 and hereby accepts the
Development Impact Fee Report — Fiscal Year 2012-2013 attached hereto as
Exhibit A and incorporated herein by reference ("the Report").
3. As to Fund 2120 Community Center Facilities; Fund 2135 Library Facilities;
Fund 2140 Parkland Acquisition and Development; and Fund 2145 Law
Enforcement Facilities; (collectively, the "Four Fee Accormts" ), the City
Council 'finds that:
a. The purpose to which each fee is to be put is identified generally in
Exhibit A of the Report, and more specifically in the City of Petaluma
Mitigation Fee Report (Sinclair & Associates, May 8, 2008) and the
Development Impact Fee Calculation and Nexus Report for the City of
Petaluma, California and Master Facilities Plan for the City of
Petaluma, California (both, Revenue & Cost Specialists, L.L.C.,
August, 2003) (collectively, the "Nexus Studies")Copies of the Nexus
Studies are available for inspection at the offices of the City Cleric.
b. There is a reasonable relationship between each fee and the purpose for
which it is charged, as more fully set forth in the Nexus Studies.
C. The remainder of funds needed to construct the public improvements
identified in the Nexus Studies related to each of the Four Fee Accounts
will be collected from future development impact fees through 2025,
the life of the City of Petal una General Plan 2025, and from other
sources as identified in the Nexus Studies and the City's adopted
Capital Improvement Program.
d. Future sources and amounts of funding anticipated to complete the
financing of specific future capital prgjects are identified and deposited
into the appropriate account as part of the City's Capital Improvement
Program budget cycle. No individual development impact fee fund has
collected sufficient funds to construct all improvements covered by that
fund as described in the Nexus Study.
Attachment 2
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CITY OF PETALUMA, CALIFORNIA
ANNUAL DEVELOPMENT IMPACT FEE REPORT
FISCAL YEAR 2012-13
5
City of Petaluma
Annual Development Impact Fee Report
Fiscal Year 2012-13
Background
The Mitigation Fee Act, Government Code §§66000 et seq., (the "Act") 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 2012-2013
report was made available to the public on the City of Petaluma website on March 20, 2014; a copy of the
repot also was mailed to all persons who had requested mailed notice relating to city fees on March 20,
2014.
Excluded from this repot are developer fees which are not subject 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 non-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
reputing requirement.
The Storm Drainage Fee was last updated in 1986, prior to the January 1, 1989 effective date of AB 1600,
but is nevertheless included in this repot 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 fiscal year following the first deposit into those funds and every five
years thereafter. (Gov't. Code §66001(d).) The effected accounts are shown on Exhibit C to this report
and are Fund 2120, Community Facilities; Fund 2135, Library Facilities; Fund 2140, Parkland
Acquisition and Development; Fund 2145, Law Enforcement Facilities.
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 1, 2012 beginning balance, annual fee revenue collected, interest earned,
returned unused funds from projects, identification of public improvements on which fees were expended
and the ending balance as of June 30, 2013 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 was funded with development impact fees. In addition to public improvement project
costs, the City incurs costs to administer each 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 support the various impact fees, the City charges administrative and
compliance costs at 3% of tine program cost for each fee as 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: Shows the funds which have miexpended fees more than five years after the first
deposit of money into those fiords (Gov't. Code§66006(b)(1)(b).)
Exhibit D: 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)(1)(B).)
Exhibit E: Identifies interfimd loans, transfers, refunds or reallocation of funds in lieu of refunds in Fiscal
Year 2012-2013 (Gov't. Code §66006(b)(1)(G)-(H)).
Exhibit A
City of Petaluma
Development Impact Fee Summary
Fee #
Impact Fee Name
Fee Authority
Brief Description of the Type of Fee
1
(A)
Aquatic Center Facilities
Reso. 2008-086
The Aquatic Center Facilities Impact Fee is to finance the
Impact Fee
N.C.S., May 19,
portion of construction of an aquatic complex with a 50
2008
meter lap pool and a 4,500 square foot recreation pool
that is related to the project's services to new
development.
2
�A>
Community Center
Reso. 2008-088,
The Community Center Facilities Impact Fee is to finance
Facilities Impact Fee
N.C.S., May 19,
the expansion of community center facilities, including
2008
furniture and fixtures, to equip new community center
facilities space required to reduce the impact of future
development.
3
(A)
Fire Suppression
Reso. 2008-088
The Fire Suppression Facilities Impact Fee is to 'finance
Facilities Impact Fee
N.C.S., May 19,
specific fire protection and emergency services facilities
2008
to reduce impacts caused by future development.
4
(A)
Library Facilities Impact
Reso. 2008-090
The Library Facilities Impact fee is to provide finding for
Fee
N.C.S., May 19,
additional library facilities, furniture, fixtures and
2008
collection materials to reduce the impacts caused by
future development.
5
Parkland Acquisition Fee
Reso. 2008-092
The Parkland Acquisition Fee is imposed on
N.C.S., May 19,
development projects that are not subject to the Quimby
2008
Act. It funds acquisition of and 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
Parldand Development
Reso. 2008-093
The Parkland Development Fee funds public facilities
Impact Fee
N.C.S., May 19,
which improve neighborhood and community parklands
2008
as needed to serve new development.
7
(A)
Open Space Acquisition
Reso. 2008-091
The Open Space Acquisition Fee funds acquisition of and
Impact Fee
N.C.S., May 19,
payment for open space necessary to maintain the city's
2008
standard established in its 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
(A)
Law Enforcement
Reso. 2008-089
The Law Enforcement Facility Fee funds the portion of
Facilities Impact Fee
N.C.S., May 19,
construction of new law enforcement facilities, including
2008
a new police station and two communications towers, and
acquisition of police vehicles and equipment, that is
related to the need to serve new development.
9
Public Facilities Impact
Reso. 2008-094
The Public Facilities Impact Fee funds a proportionate
Fee
N.C.S., May 19,
share of City Hall renovation or relocation, corporation
2008
yard construction and VOIP 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.
10
City Facilities
Reso. 2012-121
The City Facilities Development Impact Fee funds design,
Development Impact Fee
N.C.S., August
engineering, right-of-way and reasonable costs of outside
27, 2012
consultant studies related thereto, reimburse the City for
the Facilities constructed by the City with funds from
other sources including funds from other public entities,
reimburse developers who have designed and constructed
any of the facilities with prior City approval and have
entered into an agreement and pay for and/or reimburse
costs of program development and ongoing administration
and maintenance for the Fee program, including, but not
limited to, the cost of studies, legal costs, and other costs
of updating the Fee.
1 1
Storm Drainage Impact
Ord. 1530
The Storm Drainage Impact Fee funds the construction of
Fee
N.C.S., eff. Sept.
storm drainage improvements needed to control increases
20, 1982; Ord.
in run-off created by new development projects. The
1653 N.C.S., eff.
Storm Drainage Impact Fee was adopted and last updated
June 2, 1986
before the enactment and effective date of AB 1600, but is
(Petaluma
included in this report for informational purposes.
Municipal Code
Chapter 17.30);
Reso.9751
N.C.S., June 2,
1986
12
Traffic Development
Reso. 2008-095
The Traffic Development Impact Fee funds construction
Impact Fee
N.C.S., May 19,
and implementation of improvements to key elements of
2008
the citywide transportation system sufficient to
accommodate future traffic demand generated by new
development.
r"r 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.
q
Exhibit B
Development Impact Fee Report
Fiscal Year 2012-13
Fund Bakince
Fee
Interest
Return Unused
Expenditures/
Est % funded
Ending Balance
Fund
Fund Title / Project Title
7/1/2012
Revenue
Revenue
Funds
Transfers
by Impact Fees
6/30/2013
2110
vu Aquatic Ce ale r Facilities Impact Fees
51,451.48
22,569.60
255.78
736.09
73,540.77
City administrative costs
736.09
100.0'%
2120
(,, Community Facilities Impact Fees
1,094362.62
71,88700....._
3,721.56..
15306.61
1,154,66457
c 16201306 Community Center Roof
_
12,000.00
100.0%
Cary administrative costs
3,306.61
100.0%
2121 _
eu Community Come r Facilities -08
133.325.89
45,042.39
65548.
1351.27
177,672.49
City administrative costs
1,351.27
100.0%
2125
m) Fire Suppression Facilities Impact Fees
279,94858
69,138.27
1,120.71
120,000.00:
162,274.15
307,93141
_ c00300405 Expansion of Fee Station N2 & #3
120,000.00
160,000.00
.....100.0%
City administrative costs
2,274.15..
2135
w Library Facility Impact Fees.
18333773
_43,65060
80477
1,459.52
226,33359
City administrative costs
1,459.52
100.0%
2140
Parkland Acq and Dev Impact Fees
1,739,483.32
165,623.00
2833.26
74,000.00
80,568.69
1,911,370.89
c00400206 Wiseman Park Improvements
74,000.00
75,000.00
100.0%
City administrative costs
5,568.69
100.0'%
2141
Parkland Acquisition Impact Fees -08
579,380.57
97,678.94
2,490.27
2930.37
676,619.41
City administrative costs
2,930.37
100.0'%
2142
Pakland Development Inrpacl Fees -08
390,488.35
337,498.21
1,375.30
347,664.00
10,124.95
1,066,900.91
c 14500901 Luchessi Multi -Use Syraltetic
_
347,664.00
City administrative costs
10,124.95
I0offl",
2143
Open Space Acquisition Impact Fees -08
174,884.67
(38,57220)
92969.
(1,157.32)
138,394.48
City administrative costs
_. _
(1,157.32)
100.080
2145
w Lav, Enrorcernenl Facilities Impact Fees
360,090.45
73,723.20
1,548.10
2461.70
432,900.05 .
City administrative costs
2,461.70
100.0%
2150
Public Facilities Impact Fees
86,929.11
68,418,00
438.38
2,10254
153,682.95
City administrative costs _...
2,10254...
1000%
2151
ou Public Facilities Impact Fees 08 _
. 126,700 14
36,986 43
609.77
1,109.59
_
163,18b 75
City administrative costs
1,109.59
100.0%
2152
City Facilities Development Impact Fees
180,387.06
39905
5,411.61
175374.50
City administrative costs
5,411.61...
100.01%
2.155
Sturm Drainage Impact Fees
2,901,468.98
22667.57
6,441.47
270325.06
160,130.03
3,040,773.05
c00500103 -Railroad Track Relocation
189,733.06
c 16301307 -Petaluma River Flood Control
80,592.0()
c00500704 Smrm Dredge Spoik Reclamation
155,000.00
100.0",6
_
City administrative costs
5,130.03
100.0%
Exhibit B
(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.
Fund Balance
Pee
Interest
Return Unused
Eyxndaures/
Est % funded
Ending Balance
Fund
Fund Title / Project Title
7/1/2012
Revenue
Revenue
Funds
Transfers
by Impact Fees
6/3012013
2156
Storm Drainage Impact Fees -08
11,822.33
193,609.72
487,47
5,808.29.
200,111.23 ;
City administrative casts ... _._
5,908.29
100.0%
_.
2160
Traffic Impact revs
X2,368,473.49
421,003.00
2477.45
182,568.94
459,811.78.
_
2514,711.10.
c00501504-5treet sale routes to school.
31,861.59
c 16100902 -Streets -ped sing E Washington
,..
20,799.74
c00500108 -street pedestrian saucily enhancements
_
129,907.61
c00501204 Rainier Ave Cross -Town Can
355,000.00
100.0%
c00501204 Rainier Ave Crass -Town Con -level
30,07723
33.0%
c00501304 0ld Redwood I1wh Interchange -lural
_ _
30,077.23
330%
E16100280 101/E Washineton- legal
30,077.23
33.0%
City administrative costs
14,580.09
1000%
2161
Traffic Impact Fees -08
1,336,493.42
6275284.27
7,566.82
_
188,258.53
100.00.
7,430,985.98
City administrative costs
188,258.53
1000%
(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.
Exhibit C
Funds Containing Unexpended Fees More than five years after First Deposit to Fund
Fund Name
Fund Balance
6/30/2009
5 -Year Revenue
5 -Year
Expenditures
Fund Balance
6/30/2013
Fund 2120: Community Facilities (A)
401,211.35
780,836.88
27,383.66
1,154,664.57
Fund 2135: Library Facilities (A)
82,296.87
153,196.09
9,159.37
226,333.59
Fund 2140: Parkland Acquisition & Development
881,429.57
1,484,368.58
454,427.26
1,911,370.89
Fund 2145: Law Enforecement Facilities (A)
161,220.02
286,931.55
15,251.52
432,900.05
(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.
Exhibit D
Development Impact Fee Schedule
FEE TYPE
LAND USE TYPE
FEE
UNIT OF MEASUREMENT
City Facilities
Development Impact
Fee (A)
Single Family Residential
$5,399
Unit
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
Commercial
Development Housing
Linkage Fee
Commercial
$2.08
Square Foot
Retail
$3.59
Square Foot
Industrial
$2.15
Square Foot
Open Space Acquisition
Fee
Single Family Residential
$379
Unit
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
Park Land Acquisition
Fee (Quimby and Non -
Quimby Act Projects)(°)
Single Family Residential
$1,616
Unit
Multifamily Residential
$1,093
Unit
Accessory Dwelling
$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
Park Land Development
Impact Fee
Single Family Residential
$5,212
Unit
Multifamily residential
$3,510
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
D
Exhibit D
FEE TYPE
LAND USE TYPE
FEE
UNIT OF MEASUREMENT
Traffic Development
Impact Fee
Single Family Residential
$18,978
Unit
Multifamily Residential
$11,650
Unit
Accessory Dwelling
$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
Wastewater Capacity
Fee P
Single Family Residential
$7,166
Unit
Multifamily Residential
$4,744
Unit
Accessory Dwelling
$2,636
Unit
Non -Residential Customers(
$ 15.20
$ 3,451.16
$ 3,957.33
Per gallon daily flow
Per daily pound of BOD
Per daily pound of TSS
Water Capacity Fee
(per meter size)
METER SIZE
FEE
3/Y
$3,488
I" (residential)
$3,488
1" (non-residential)
$5,825
1 %
$11,615
2"
$18,591
3"
$34,880
4"
$58,145
6"
$115,104
>6
Case by
Case basis
(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
Map Act to fund land acquisition costs for park or recreational purposes.
tL�