HomeMy WebLinkAboutStaff Report 3.D 02/24/2020p, L
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Agenda Item #3.D
DATE: February 24, 2020A1111-1 ^,
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TO: Honorable Mayor and Members of the City Council through City Manager 'lL_.
FROM: Corey Garberolio, Finance Director
Janine Tedrow, Finance and Accounting Manager
SUBJECT: Resolution Accepting the Fiscal Year 2019 Development Impact Fee Report
Pursuant to Assembly Bill 1600
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Accepting the Fiscal Year
2019 Development Impact Fee Report Pursuant to Assembly Bill (AB) 1600.
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, 2019 is included as Attachment 2 to this agenda report.
PUBLIC OUTREACH
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). This agenda item appeared
on a tentative agenda in the previously -published agenda packet, which was publicly noticed
through appropriate City communications channels. The FY 2018-2019 report was made
available to the public on the City of Petaluma website on February 6, 2020; and a copy of the
report also was mailed on February 6, 2020 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
2018-2019 is also included in Attachment 2.
ATTACHMENTS
1. Resolution Accepting the Annual Development Impact Fee Report
2. FYI 8-19 Annual Development Impact Fee Report
W
ATTACHMENT 1
RESOLUTION ACCEPTING THE FISCAL YEAR 2019 DEVELOPMENT IMPACT
FEE REPORT PURSUANT TO ASSEMBLY BILL 1600
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 is set forth
in the Development Impact Fee Report — Fiscal Year 2018-2019 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
February 6, 2020; and,
WHEREAS, copies of the Report were mailed on February 6, 2020 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 2018-2019 attached hereto as Attachment 2 and
incorporated herein by reference ("the Report")
Attachment 2
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CITY OF PETALUMA, CALIFORNIA
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City of Petaluma
Annual Development Impact Fee Report
Fiscal Year 2018-19
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 2018-2019
report was made available to the public on the City of Petaluma website on February 6, 2020, a copy of
the report also was mailed to all persons who had requested mailed notice relating to city fees on February
6, 2020.
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 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 18-19, 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, 2018 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, 2019 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 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 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 all modifications since
original fee adoption.
Exhibit D: Identifies interfund loans, transfers, refunds or reallocation of funds in lieu of refunds in
Fiscal Year 2018-2019 (Gov't. Code §66006(b)(l)(G)-(H)).
Fee #
1
2
3
0
Exhibit A
City of Petaluma
Development Impact Fee Summary
Impact Fee Name
Fee Authority
Brief Description of the Type of Fee
Parkland Acquisition
Reso. 2014-038
The Parkland Acquisition Fee is unposed 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.
Parkland Development
Reso. 2016-160
The Parkland Development Fee funds public facilities
Impact Fee
N.C.S; October 3,
which improve neighborhood and community parklands
2016; Reso. 2014-
as needed to serve new development.
037 N.C.S., March 3,
2014; Reso. 2012-
122 N.C.S., August
27, 2012; Reso.
2008-093 N.C.S.,
May 19, 2008
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
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.
4
E
M
Storm Drainage Impact
Fee
Traffic Development
Impact Fee
Ord. 1530 N.C.S.,
eff. Sept. 20, 1982;
Ord. 1653 N.C.S.,
eff. June 2, 1986
(Petaluma Municipal
Code Chapter 17.30);
Reso. 9751 N.C.S.,
June 2, 1986
Reso.2016-76
N.C.S. May 16, 2016
Reso 2015-191
N.C.S., Dec 7,2015;
Reso 2014-112
N.C.S., July 7, 2014
Reso. 2014-040
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 Storm Drainage Impact Fee funds the construction of
storm drainage improvements needed to control increases
in run-off created by new development projects. The
Storm Drainage Impact Fee was adopted and last updated
before the enactment and effective date of AB 1600, but is
included in this report for informational purposes.
The Traffic Development Impact Fee funds construction
and implementation of improvements to key elements of
the citywide transportation system sufficient to
accommodate future traffic demand generated by new
development.
Exhibit B
Development Impact Fee Report
Fiscal Year 2018-19
6
Fund Balance
Fee
Interest
Return Unused Expenditures/
Est'% funded
Ending Balance
Fund
Fund Title / Project Title
7/1/2018
Revenue
Revenue
Funds /loan repymt Transfers
by Impact Fees
6/30/2019
2141
Parkland Acquisition Impact Fees -08
1,282,350.79
247,061.00
36,975.61
4,941.22
1,561,446.18
City administrative costs
4,941.22
100.0%
2142
Parkland Development Impact Fees -08
1,833,207 21
690,793.00
55,085.77
11275.85 151,994.08
2,439,367.75
c 14501607 Pet Comm Sports Field -Baseball
78,900.00
100.0%
c 14501604 E Washington Park Restroom
59,278.22
52.0%
City administrative costs
13,815.86
100.01y.
2143
Open Space Acquisition Impact Fees -08
187,424.15
171,908.00
4,26726
7,438.16
356,161.25
City administrative costs
7,438.16
100.0%
2152
City Facilities Development Impact Fees
5,240,887.58
824,183.00
142,123.63
16,483.66
6,190,710.55
City administrative costs
16,483.66
100.0%
2155
Storm Drainage Impact Fees
2,728,691.64
-
64,103.95
15,500.00
2,777,295.59
c 16301620 Alert2 Stream & Precipitation Upgrade
15,000.00
18.0%
c 16501931 Storm Trash Capture Device Pilot
500.00
100.0%
2156
Storm Drainage Impact Fees -08
412,831.16
46,460.49
8,491.76
929.21
466,854.20
City administrative costs
929.21
100.0%
2160
Traffic Impact Fees
3364,127.93
-
92,0W22
2,400.00
3,453388.15
c 16101201 Washington St. Bridge Rehabilitation
2,400.00
4.0%
2161
Traffic impact Fees -08
20,997,821.22
1,945,823.94
590,191.61
38,916.48
23,494,920 29
City administrative costs
38,916.48
100.0%
6
FY 18/19 Development Impact Fee Schedule
FEE TYPE LAND USE TYPE
FEE
City Facilities
1,000 sq ft of building space
Development Impact
1,000 sq ft of building space
Fee) Single Family Residential
$6,263
Multifamily Residential
$4,216
Accessory Dwelling
$2,148
Commercial
$1,186
Office
$1,133
Industrial
I
$722
;
Commercial
Development Housing
Linkage Fee Commercial
Retail
Industrial
Open Space Acquisition
Fee Single Family Residential
Park Land Acquisition
Fee (Quimby and Non -
Quimby Act Projects)(^)
Park Land Development
Impact Fee
Multifamily Residential
Accessory Dwelling
Commercial
Office
Industrial
Single Family Residential
Multifamily Residential
Accessory Dwelling
Commercial
Office
Industrial
Single Family Residential
Multifamily residential
Accessory Dwelling
Commercial
Office
Industrial
FA
$2.42
$4.17
$2.49
$440
$296
$151
$84
$81
$51
UNIT OF MEASUREMENT
Unit
Unit
Unit
1,000 sq ft of building space
1,000 sq ft of building space
1,000 sq ft of building space
Square Foot
Square Foot
Square Foot
Unit
Unit
Unit
1,000 sq ft of building space
1,000 sq ft of building space
1,000 sq ft of building space
$1,874 Unit
$1,268 Unit
$642 Unit
$356
1,000 sq ft of building space
$339
1,000 sq ft of building space
$216
1,000 sq ft of building space
$6,197
Unit
$4,173
Unit
$2,125
Unit
$1,174
1,000 sq ft of building space
$1,123
1,000 sq ft of building space
$715
1,000
Exhibit C
FY 18/19 Development Impact Fee Schedule
FEE TYPE
LAND USE TYPE
Traffic
Development
Single Family Residential
Impact Fee
Multifamily Residential
Accessory Dwelling
Senior Housing
Office
Hotel/Motel
Commercial/Shopping
Industrial /Warehouse
Education
Institution
Gas/Service Station
Wastewater
Capacity Fee (R) Single Family Residential
Multifamily Residential
Accessory Dwelling
Non -Residential Customers
Water Capacity METER SIZE
Fee
(per meter size)
3/4
1" (residential)
1" (non-residential)
1 '/2
2"
3"
4"
6"
>6
FEE
$ 15,749
$ 9,667
$ 4,366
$ 4,209
$ 20,802
$ 6,204
$ 30,431
$ 12,318
$ 1,550
$ 6,382
$ 50,944
$8,314
$5,505
$3,059
$ 17.63
$ 4,004
$ 4,591
$4,048
$4,048
$6,758
$13,477
$21,571
$40,470
$67,464
$133,552
Case by
Case basis
Exhibit C
UNIT OF MEASUREMENT
Unit
Unit
Unit
Unit
1,000 sq ft of building space
Room
1,000 sq ft of building space
1,000 sq ft of building space
Student
1,000 sq ft of building space
Fuel Position
Unit
Unit
Unit
Per gallon daily flow
Per daily pound of BOD
Per daily pound of TSS
(a) 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.
a
Exhibit C
(b) 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.
STORM DRAIN IMPACT FEE
Calculation of Fee
Runoff computation: The increase in runoff created by a given project is calculated for a 100 -year stonn, 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.
Exhibit D
Status of Interfund Loans, Transfers, Refunds or Reallocation of Funds
Fiscal Year 2018-19
Interfund Loans
The Storm Drainage Impact Fee fund 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 18-19 was
$44,671. The balance as of June 30, 2019 is $476,058. This loan is scheduled to be repaid by June 30, 2026.
There were no Transfers, Refunds or Reallocation of Funds during FY 18-19.
Me