HomeMy WebLinkAboutStaff Report 3.C 12/05/2016Agenda Item #3.0
DATE: December 5, 2016
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: William Mushallo, Finance Director
Janine Tedrow, Senior Accountant
SUBJECT: Resolution Accepting the Fiscal Year 2016 Development Impact Fee Report
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Accepting the Fiscal Year
2016 Development Impact Fee Report Pursuant to AB 1600 (Government Code Section 66000
ET SEQ.).
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. 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, 2016 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 2015 -2016 report was made
available to the public on the City of Petaluma website on November 17, 2016; and a copy of the
report also was mailed on November 17, 2016 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
2015 -2016 is also included in Attachment 2.
ATTACHMENTS
1. Resolution Accepting the Annual Development Impact Fee Report
2. FYI 5-16 Annual Development Impact Fee Report
P1.1.09
ATTACHMENT 1
RESOLUTION ACCEPTING THE FISCAL YEAR 2016 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 2015 -2016 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 November 17, 2016; and,
WHEREAS, copies of the Report were mailed on November 17, 2016 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 2015 -2016 attached hereto as
Attachment 2 and incorporated herein by reference ( "the Report"),
0
Attachment 2
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9
CITY OF PETALUMA, CALIFORNIA
ANNUAL DEVELOPMENT IMPACT FEE REPORT
FISCAL YEAR 2015 -16
City of Petaluma
Annual Development Impact Fee Report
Fiscal Year 2015 -16
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 2015 -2016
report was made available to the public on the City of Petaluma website on November 17, 2016; a copy of
the report also was mailed to all persons who had requested mailed notice relating to city fees on
November 17, 2016.
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 one fee 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 fiend 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 15 -16, 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, 2015 beginning balance, annual fee revenue collected, interest earned,
returned unused funds from projects and loan repayments, identification of public improvements on
which fees were expended and the ending balance as of June 30, 2016 for each fee (Gov't. Code
§66006(b)(1)(C) -(E).) Excess fiends from capital project fiends were returned to the originating revenue
Rinds. 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
were adopted December 7, 2015, when the City amended provisions of the Traffic Development Impact
Fee.
Exhibit D; Identifies interfund loans, transfers, refunds or reallocation of funds in lieu of refunds in
Fiscal Year 2015.2016 (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
Reso, 2008 -086
The Aquatic Center Facilities Impact Fee is to finance the
Facilities 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 set-vices to new
development,
2
(A)
Community Center
Reso. 2008 -088,
The Community Center Facilities Impact Fee is to
Facilities Impact Fee
N.C.S., May 19,
finance the expansion of community center facilities,
2008
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,
specific fire protection and emergency services facilities
2008
to reduce impacts caused by future development.
4
(A)
Library Facilities
Reso. 2008 -090
The Library Facilities Impact fee is to provide funding for
Impact 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
Reso, 2014 -03 8
The Parkland Acquisition Fee is imposed on
Fee
N.C.S., March 3,
development projects that are not subject to the Quimby
2014; Reso. 2012-
Act. It funds acquisition of and payment for parkland
124 N.C.S., August
necessary to maintain the standard established in the
27, 2012; Reso,
city's General Plan, based on a ratio of parkland acreage
2008 -092 N.C.S.,
to population, including employees of new commercial
May 19, 2008
development, as 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
2014; Reso. 2012
as 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 funds 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
123 N.C.S., August
of open space acreage to population, including employees
27, 2012; Reso.
of new commercial development, as new residents and
2008 -091 N.C.S.,
employees are added by new development,
May 19, 2008
I
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
(A)
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
(A)
City Facilities
Reso. 2014 -036
The City Facilities Development Impact Fee funds
Development Impact
N.C. S., March 3,
design, engineering, right -of -way and reasonable costs of
Fee
2014; Reso. 2012-
outside consultant studies related thereto, reimburse the
121 N.C.S., August
City for the Facilities constructed by the City with funds
27, 2012
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.
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
eff. June 2, 1986
Storm Drainage Impact Fee was adopted and last updated
(Petaluma Municipal
before the enactment and effective date of AD 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 2015 -191
The Traffic Development Impact Fee fiends construction
Impact Fee
N.C.S., Dec 7, 2015;
and implementation of improvements to lwy elements of
Reso 2014 -112
the citywide transportation system sufficient to
N.C.S., July 7, 2014
accommodate future traffic demand generated by new
Reso. 2014 -040
development,
N.C.S., March 3,
2014; Reso, 2012-
125 N.C.S., August
27, 2012; Reso.
2008 -095 N.C.S.,
May 19, 2008
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.
Development Impact Fee Report
Fiscal Year 2015 -16
Fund iFund Title /Project Title .
1
2110 t A) JAquaticCenterFacilities Impact Fees
�City administrative costs
2120 ! (A) (Community Facilities Impact Fees
l i .
2121 ;(A) (Community Center Facilities - 08
i (City administrative costs
2125 tA) (Fire Suppression Facilities Impact Fees
Ic00300405- Expansion of Fire Station #2 _& #3
City administrative costs
a -
2135 (A)1Librnry Facility Impact Fees
1_ ,C�tyadminisf ;atiyecosts
2140 'Parldand Aeq and Bev Impact Fees
i
2141 i 1Pm4dand Acquisition Impact Fees -08
I City administrative costs
2142 jPark landDevelopmentImpactFees -08
,14501604 E Washington ParkRestroorn
,14501403 E Washington Park Pathway _ -
!City administrative costs
2143 j _ Open Space Acquisition Impact Fees -08
City administrative costs
j
i 2145 ( A) jLmV Enforcement Facilities Impact Fees
City administrative costs
i
2150 ,(A) !Public Facilities ImpactFees
Ic00100104 Museum Roof
!City administrative costs
i
2151 ! ov jPublic Facilities Impact Fees -08
1Cityadministrative costs
2152 .CityF'acilities Development Impact Fees
!City administrative costs
2155 Storm Drainage Impact Fees
Ic16301413 Capri Creek
�c00500208 River Plan-Denman Phase 3
j„ I c00500705 Lakeville Channel lmprov_ements
1,00500308 Stream and Precipitation Gauges
jc16301307Riverflood Control,
City administrative costs
2156 j IStornr Drainage Impact Fees -08
1 I (City administrative costs
Exhibit B
Fund Balance j Fee
Interest
Return Unused ;.Expenditures/
Est %funded
EndingBalance'I
7/1/2015
j Revenue
i Revenue
!Funds Aoan repyml
Transfers
!, by Impact Fees
6/30/2016
76,839.92
i 491.00
! 264.93
i
9.82
1
77,586.03
9.82
100.0%
1,083,490.12
;
I 5291.991
1,088,782.11
1 178,702.36 1 653,00
!
1 614.73
1
13.06
i
179,957.03
13.06(
100.0 %i
i
1 282,880.32
1,135.00
958,50 j
21,022.70
f
263,951.12 I
j
1 i
21,000.00
1 100.0 %!
i
I
22.701
100.0 %j
j 233 983.50
j 859.00
i 804.75 i
17.18
235,630.07 j
17.181
100.0 %!..
0.00 ;
j !
0.00
L 796,667.84
125,785.49
1 i �
2,846,50
2,515.71
1
922,784.12
1_ . _
....
2,5.15.71
100.0 %'.
1 594,864.91
; 385,428.98
i 5,167,60 ! 400,000.00 ;
240,708.58
I
1,144,752.91
j
i
133,000.00,
100.0 %j
100 000.00_
24.2 /o I °
i
i
7708.58
1 10070 %1
122038.62
i 36,283.79 1
479.32
725.68
i
158,076.05
I
725.68
100.00/0'1
I
I 443,402.58
i 1,483.00 I
1,524.55
29.66
446,380.47 l
I
29.66
j 100.0%
i
I 174,530.18
i, 543.00 1
600.08
10.86 i
175,662.40
1
100.0%1:
jj
i
10.86
.. I
°
100.0%
163,169.90
i 1,352.00
563.39 j
27.04 I
;
165,058.25 i
27.041._
.. 100.0 %1 .
-
1,047,993.77
287,328.52 1
7,195.52 I
5,746.57
1,336,771.24
1
5 ,746.57 1
100.0 %1
3,410,504.27
4,178,43 1
14,898,311 (27,583.33)1
630,985.57 I
2,771,012.11
40,900 00 I
35.3 %'
...
c
I
81000 00 1
6.5%
_ .I
9 000 00 1
3.1 %I
65.9 %1
i
(
.490002.00
83,57
1I
210,145.17
I 37,548.77 1
784,54
750.98
247,727.50
750.98
_ 100.0 %i
_ !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.
p
Fund Balance Fee
Interest Return Unused j Expenditures/ j Est % funded ? Ending Balance
Fund- I
jFund Title / Project Title 7/1/2015 j Revenue j_
_ _ _ -- --
_
Revenue 4Funds /loan repymf Transfers I by Impact Fees ;
_
6130/2016
j
2160 j !Traffic Impact Fees ! 3,015,846.97 I
17,561.46
I
(
1
i
3,033,408.43
I I
j
i
-
'
j
i
2161 (Traffic Impact Fees -08
i
I 11,655,982.90 2,290,105,37
76,188,87 1
I
I 255,555.41
I
13,766,721.73 I
Ic00501204 Raider Ave Cross town connector
_ _ ._.
j I
_
20,000.00
.
22.0 %1
_ _..
1.65501503 Petaluma Transit vehicle Location (
25,000.00 I
19.2 %!
j �c16101201 Washington StBridgeRehabilitation ! !
!
j 9,000.00
3.5 %1
! je16102015
Caulfield Lana Grade Crossing Improvements !
j j
155,753.30 1
100.0%;
!City
administrative costs
45,802.11
100.0 %1
(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.
p
FY 15/16 Development Impact Fee Schedule
FEE TYPE LAND USE TYPE FEE UNIT OF MEASUREMENT
City Facilities
Development Impact
Fee )(A) Single Family Residential $5,680 Unit
Multifamily Residential $3,824 Unit
Accessory Dwelling $1,948 Unit
Commercial $1,076 1,000 sq ft of building space
Office $1,028 1,000 sq ft of buildings ace
Industrial $655 1,000 sq ft of building space
Commercial
Development Housing
Linkage Fee
Open Space Acquisition
Fee
Park Land Acquisition
Fee (Quimby and Non
Quimby Act Projects) (B)
Park Land Development
Impact Fee
Commercial $2.19 Square Foot
Retail $3,78 Square Foot
Industrial $2,26 Square Foot
Single Family Residential 1 $398
Multifamily Residential
$268
Accessory Dwelling
$137
Commercial
$76
Office
$73
Industrial
$46
Unit
Unit
Unit
1,000 sq ft of buildi
1,000 sq ft of buildi
1,000 so ft of buildi
Single Family Residential 1 $1,700 ( Unit
Multifamily Residential
$1,150
Unit
Accessory Dwelling
$583
Unit
Commercial
$322
1,000 sq ft of
Office
$308
1,000 sq ft of
Industrial
$196
1,000 sq ft of
Single Family Residential 1 $5,484 1 Unit
Multifamily residential
$3,693
Unit
Accessory Dwelling
$1,881
Unit
Commercial
.$1,039
1,000 sq ft of
Office
$994
1,000 sq ft of
Industrial
$632
1,000
Exhibit C
I`
FY 15/16 Development Impact Fee Schedule
Exhibit C
FEE TYPE
LAND USE TYPE
FEE
UNIT OF ME ASUREMENT
Traffic
Development
Impact Fee
Single Family Residential
$ 13,623
Unit
Multifamily Residential
$ 8,363
Unit
Accessory Dwelling
$ 3,777
Unit
Senior Housing
$ 3,642
Unit
Office
$ 17,995
1,000 sq ft of building space
Hotel/Motel
$ 5,367
Room
Commercial /Shopping
$ 26,326
1,000 sq ft of building space
Industrial /Warehouse
$ 10,656
1,000 sq ft of building space
Education
$ 1,341
Student
Institution
$ 5,521
1,000 sq ft of building space
Gas /Service Station
$ 44,070
Fuel Position
Wastewater
Capacity Fee (C)
Single Family Residential
$7,554.05
Unit
Multifamily Residential
$5,000.90
Unit
Accessory Dwelling
$2,778.75
Unit
Non - Residential Customers
$ 16.02
$3,638.05
$ 4,171.63
Per gallon daily flow
Per daily pound of BOD
Per daily pound of TSS
Water Capacity
Fee
(per meter size)
METER SIZE
FEE
3/
$3,676.89
I" (residential)
$3,676.89
1" (non - residential)
$6,140.43
11/2
$12,243.98
2"
$19,597.74
3"
$36,768.82
4"
$61,293.68
6"
$121,337.13
>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 hmpact 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 unposed on certain subdivisions subject to the Subdivision
Map Act to fiend 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.
Exhibit C
gy 17 77► ■ I OVIVI '� 1' �r�ll l� DI
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.
1 `3
Exhibit D
Status of Interfund Loans, Transfers, Refunds or Reallocation of Funds
Fiscal Year 2015 -16
Interfund Loans
The Storm Drainage Impact Fee Rind loaned the Storm Water Utility Operations fund $690,230 to cover storm water
maintenance costs from January 1, 2012 through June 30, 2013. Payment of principal and interest for FY 15 -16 was
$48,473. The balance as of June 30, 2016 is $604,337. This loan is scheduled to be repaid by June 30, 2026.
The Community Facilities Impact Fee fund loaned the Parks CIP fund $39,732 through June 30, 2016 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 I5 -16.
M