HomeMy WebLinkAboutStaff Report 3.A 04/20/2015Agenda Item #3.A
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DATE: April 20, 2015
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: William Mushallo, Finance Direct630--�
Scott Catania, Accountant
SUBJECT: Resolution Accepting the June 30, 2014 Annual AB 1600 Development. Impact
Fee Report
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Accepting the Fiscal Year
2014 Development Impact Fee Report Pursuant to AB 1600 (Government Code Section 66000
ET SEQ.).
BACKGROUND
The Mitigation Fee Act, Government Code §x'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. 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.
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)). The annual development impact fee report
for the year ending June 30, 2014 is included as Attachment 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 Government Code §66006(b)(2). The FY 2013-2014 report was made
available to the public on the City of Petaluma website on April 2, 2015; and a copy of the report
also was mailed on April 2, 2015 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 funds.
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 FY
2013-2014 is also included in Attachment 2.
ATTACHMENTS
1. Resolution Accepting the Annual Development Impact Fee Report
2. FYI 3-14 Annual Development Impact Fee Report
ATTACHMENT 1
RESOLUTION ACCEPTING THE FISCAL YEAR 2014 DEVELOPMENT
IMPACT FEE REPORT PURSUANT TO AB -1600 (GOVERNMENT CODE
SECTION 66000 ET SEQ.)
WHEREAS, the City of Petaluma imposes fees to mitigate the impacts of
development, pursuant to Government Code §§66000 et seq.; and,
WHEREAS, fees collected are deposited into a separate fund account for each
type of development impact fee; and,
WHEREAS, a description of each fee, its amount, and various information
required by Government Code section 66006(b)(1) to be reported on an annual basis is
set forth in the Development Impact Fee Report — Fiscal Year 2013-2014 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 April 2, 2015; and,
WHEREAS, copies of the Report were mailed on April 2, 2015 to all persons
having requested notice of City actions relating to fees; and,
WHEREAS, the City Council has reviewed the Report.
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 2013-2014 attached hereto as
Attachment 2 and incorporated herein by reference ("the Report").
Attachment 2
L ti'vIS
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- 85 -
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CITY OF PETALUMA, CALIFORNIA
ANNUAL DEVELOPMENT IMPACT FEE REPORT
FISCAL YEAR 2013-14
City of Petaluma
Annual Development Impact Fee Report
Fiscal Year 2013-14
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 2013-2014
report was made available to the public on the City of Petaluma website on April 2, 2015; a copy of the
report also was mailed to all persons who had requested mailed notice relating to city fees on April 2,
2015.
Excluded from this report 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
reporting 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 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 fiscal year following the first deposit into those funds and every five
years thereafter. (Gov't. Code §66001(d).) In FY 13-14, 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 1, 2013 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, 2014 for each fee (Gov't. Code §66006(b)(1)(C)-(E).) Excess ftinds
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 2% of the 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 fiends 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 March 3, 2014, when the City amended provisions of the City Facilities Development
Impact Fee, the Parkland Development Impact Fee, the Parkland Acquisition Fee, the Open Space
Acquisition Impact Fee, the Traffic Development Impact Fee and the Wastewater Capacity Fee.
Exhibit D: Identifies interfund loans, transfers, refunds or reallocation of funds in lieu of refunds in
Fiscal Year 2013-2014 (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, 2008
portion of construction of an aquatic complex with a 50
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, 2008
the expansion of community center facilities, including
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, 2008
specific fire protection and emergency services facilities
to reduce impacts caused by future development.
4
(A)
Library Facilities Impact
Reso. 2008-090
The Library Facilities Impact fee is to provide funding for
Fee
N.C.S., May 19, 2008
additional library facilities, furniture, fixtures and
collection materials to reduce the impacts caused by future
development.
5
Parkland Acquisition
Reso. 2014-038
The Parkland Acquisition Fee is imposed on development
Fee
N.C.S., March 3,
projects that are not subject to the Quimby Act. It funds
2014; Reso. 2012-
acquisition of and payment for parkland necessary to
124 N.C.S., August
maintain the standard established in the city's General
27, 2012; Reso.
Plan, based on a ratio of parkland acreage to population,
2008-092 N.C.S.,
including employees of new commercial development, as
May 19, 2008
new residents and employees are added by new
development.
6
Parkland Development
Reso. 2014-037
The Parkland Development Fee funds public facilities
Impact Fee
N.C.S., March 3,
which improve neighborhood and community parklands as
2014; Reso. 2012-
needed to serve new development.
122 N.C.S., August
27, 2012; Reso.
2008-093 N.C.S.,
May 19, 2008
7
Open Space Acquisition
Reso. 2014-039
The Open Space Acquisition Fee fiends acquisition of and
Impact Fee
N.C.S., March 3,
payment for open space necessary to maintain the city's
2014; Reso. 2012-
standard established in its General Plan based on a ratio of
123 N.C.S., August
open space acreage to population, including employees of
27, 2012; Reso,
new commercial development, as new residents and
2008-091 N.C.S.,
employees are added by new development.
May 19, 2008
8
(A)
Law Enforcement
Reso. 2008-089
The Law Enforcement Facility Fee funds the portion of
Facilities Impact Fee
N.C.S., May 19, 2008
construction of new law enforcement facilities, including 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
(A)
Public Facilities Impact
Reso. 2008-094
The Public Facilities Impact Fee funds a proportionate
Fee
N.C.S., May 19, 2008
share of City Hall renovation or relocation, corporation
yard construction and VOID 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
(A)
City Facilities
Reso. 2014-036
The City Facilities Development Impact Fee funds design,
Development Impact
N.C.S., March 3,
engineering, right-of-way and reasonable costs of outside
Fee
2014; Reso. 2012-
consultant studies related thereto, reimburse the City for
121 N.C.S., August
the Facilities constructed by the City with funds from
27, 2012
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.
11
Storm Drainage Impact
Ord. 1530 N.C.S.,
The Storm Drainage Impact Fee funds the construction of
Fee
eff. Sept. 20, 1982;
storm drainage improvements needed to control increases
Ord. 1653 N.C.S.,
in run-off created by new development projects. The
off. June 2, 1986
Storm Drainage Impact Fee was adopted and last updated
(Petaluma Municipal
before the enactment and effective date of AB 1600, but is
Code Chapter 17.30);
included in this report for informational purposes.
Reso. 9751 N.C.S.,
June 2, 1986
12
Traffic Development
Reso. 2014-040
The Traffic Development Impact Fee funds construction
Impact Fee
N.C.S., March 3,
and implementation of improvements to key elements of
2014; Reso. 2012-
the citywide transportation system sufficient to
125 N.C.S., August
accommodate future traffic demand generated by new
27, 2012; Reso.
development.
2008-095 N.C.S.,
May 19, 2008
(A) The City Facilities Impact Fee consolidated 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.
AN
Development Impact Fee Report
Fiscal Year 2013-14
' I
Fund !Fund Title / Project Title
2110 (A) Aquatic Center Facilities Impact Fees
'City administrative costs
2120(n)'ICommunityFacilitiesImpact Fees
c 16201306 Community Center Roof
City administrative costs
2121(A)'Community Center Facilities -08
City administrative costs
2125 (n) !Fire Suppression Facilities Impact Fees
1
003OW5 Expansion of Fire Station #2 & #3
i
City administrative costs
2135 1 (A)Library Facility Impact Fees
City administrative costs
2140 Parkland Acq and Dev Impact Fees
Revenue Correction - Tfr to Parks CIP
City administrative costs
2141 { Parldand Acquisition Impact Fees -08
c00400206 WisemanPark Improvements
i
City administrative costs
2142 IParkland Development Impact Fees -08
!City administrative costs
2143 Open Space Acquisition Impact Fees -08
]City administrative costs
' I
2145 n> IL.Enforcement Facilities Impact Fees
i
City administrative costs
2150 (n) ]Public Facilities Impact Fees
City administrative costs
2151 (n)
2152 n)
2155
1
I
Public Facilities Impact Fees -08
City administrative costs
City Facilities Development Impact Fees
City administrative costs
Storm Drainage Impact Fees
c00500805 River Dredging - Habitat Restoration
c16301413 Capri Creek
c16301415 Surface Water Projects
City administrative costs
Exhibit B
Fund Balance ! Fee i Interest Return Unused Expenditures/Est% funded Ending Balance
7/1/2013. j Revenue Revenue Funds Transfers j by Impact Fees 6/30/2014
73,540.77 1 2,361.13 286.28 i 92.53 76,095.65
,
92.53 100.0%
i 1
1154((4571 19009,97 1 471R16 14514(R 1 11riRr,O i
I
13,000.00
100.0%;
j
I _1
1,515.68
100.0%1
177,672.49 (
(1,544.15)1
667.46
i i I
1 1 (39.89)1
176,835.69 '1
i
E (39.89),`_
100.0%! {
1
307,933.41 1
8,862.81
I 1 190.15
' i
13,963.43
1
314 022.94 i
j 3,600.001
100.0%j
363.43
100.0%!
226,333.59
5,662.94
872.87
254.53
232 614.87 I
254.53
I
100.0%'.
1,911,370.89 1
35,554.92
1 7 277.23
; 1 438277.97 :
1,515,925.07 1
436,000.00
100.0%';
1
t_ 2,277_.971
100.0%1
I 676,619.41
19,561.21
2,623.23
i j 74 371.69
624,432.16 1
1 _ 74,000.00
100.0%!
371.69 '
100.0°/d,
1,066,900.91
204271.63
11 3,886.21
4,017.93
1,27t,040.82
4,017.93
100.0%
i
j 138,394.48 ;
(63290.98)1
I
370.25
I
(1258.10)
76,731.85
(1,258.10)]
I
100.0%
432,900.05 1
7,265.67
1,657.29
380.57
441,442.44
_
! 380_._57
100.0%o
j 153,682.95
17,517.18 (
631.69
I 1 386.66
( 171,445.16 j
i
(
1 386.661
100.0%1
j 163,186.75
(2277.71)1,
610.62
(52.95):
161,572.61
(52_.95)'
100.0%
j 175,374.50 1
231,984.87
1,178.56
i 4,603.62 i
1 403,934.31
_
( j 4,603.621
100.0%,
3,040,773.05
165,207.46
9618.91
103,814.87 19,220.52
3,300,193.77 !
'
I
370.901
o
100.0%;
i
C 9,100.001
100.0%1
i
2,000.00_1
I
loo.o°io
,
(
'
C
7749.62 �
,
100.0%
i
Exhibit B
(A) The City Facilities Impact Fee consolidated 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.
to
Fund Balance
Fee
Interest Return Unused
Expenditures/ 1 Est % funded
Ending Balance
Fund Fund Title / Project Title
7/1/2013
Revenue (
Revenue Funds
Transfers
by Impact Fees
6/30/2014
2156
(Storm Drainage Impact Fees -08
200,111.23 C
2,321.73 i
756.41 1
7.71
203181.66
City administrative costs
i
i
7.71
100.0%I
2.160
Traffic Impact Fe e s 1
2,514,711. 1 U ;
758 887.53
12 599.74
I
224 308.18 1
i
3,061,890.19
c03200503 River Trail - Washington to Lakeville
C
; 153,000.00 i
100.0%I
�c65101402 Transit Signal Priority(
(
54,000.00
100.0%i
City administrative costs
(
1 17,308.18
100.0%;
I
I2161 I �TraHcIm actFees-08
7431085.981 2362942.42
28,104.31
46 003.79
9,776,128.92
City achninistrative costs
j 46,003.79
100.0%;
(A) The City Facilities Impact Fee consolidated 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.
to
Exhibit C
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)(B)
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 sq ft of building space
Exhibit C
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 (C)
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
3/4
$3,488
1" (residential)
$3,488
I" (non-residential)
$5,825
1 %2
$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 consolidated 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.
(c) The wastewater capacity fee for non-residential users is based on the daily flow, biological oxygen demand and the
total suspended solids of the wastewater being discharged. Please contact the Department of Public Works & Utilities
at 707-778-4546 for a quote.
12
Exhibit C
STORM DRAIN IMPACT FEE
Calculation of Fee
Runoff computation: The increase in runoff created by a 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 type of 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% or less landscaping. A project with 25% 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.
13
Exhibit D
Status of Interfund Loans, Transfers, Refunds or Reallocation of Funds
Fiscal Year 2013-14
Interfund Loans
The Storm Drainage Impact Fee fund lent the Storm Water Utility Operations fund $690,230.16 to cover storm water
maintenance costs from January 1, 2012 through June 30, 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.
The Community Facilities Impact Fee fund lent the Parks CIP fund $544,000.00 through June 30, 2014 to renovate
the Swim Center pool heating boilers. All payment of principal and interest are payable upon receipt of the PG&E
General On -Bill Financing Loan described in Resolution No. 2011-170 N.C.S. and 2013-004 N.C.S..
There were no Transfers, Refunds or Reallocation of Funds during FY 13-14.
11