TITLE:
title
PUBLIC HEARING REGARDING THE DEVELOPMENT IMPACT FEES ANNUAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2023 AND THE TRAFFIC IMPACT FEE ANALYSIS
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DEPARTMENT: FINANCE AND PUBLIC WORKS DEPARTMENT
PRESENTED BY: CAROL MOLINA, FINANCE DIRECTOR / RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: CAROL MOLINA, FINANCE DIRECTOR, (714) 754-5243 / RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR, (714) 754-5343
RECOMMENDATION:
recommendation
Staff recommends the City Council:
1. Receive and file the Development Impact Fees Annual Report (Attachment 1) for the Fiscal Year ended June 30, 2023.
2. Adopt resolution (Attachment 2) continuing the citywide traffic impact fee for new development that incorporates recommendations from the Traffic Impact Fee Ad Hoc Committee and staff, which include:
• Continue a traffic impact fee of $235 per Average Daily Trip (ADT) based on the Capital Improvement Projects in Attachment 4 and Active Transportation projects in the adopted Active Transportation Plan (ATP).
• Approve allocation of up to ten percent (10%) of traffic impact fees towards traffic signal synchronization projects.
• Approve a five percent (5%) reduction in automobile trips as a result of ATP implementation and an additional five percent (5%) reduction in automobile trips for developments proposing to implement active transportation improvements beyond typical development requirements.
• Approve the annual accounting of the Citywide Traffic Impact Fee Program (Attachment 6).
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BACKGROUND:
Pursuant to the Mitigation Fee Act (California Government Code Sections 66001 through 66009), the City Council established certain Development Impact Fees (DIFs) that must be paid by developers of property to help offset some (or all) of the cost of public facilities related to the development project. The DIFs are for Park Development Impact Fees, Drainage Impact Fees, Traffic Impact Fees, and Fire Systems Development Fees. The Mitigation Fee Act requires that City Council approve an annual report that provides information about the DIFs. These fees are required to be deposited into their own separate accounts or funds. The law also requires that certain findings be made in association with accumulated DIFs after the deposit into their respective account or fund.
ANALYSIS:
Reporting requirements under California Government Code 66006 specify that the City must prepare annual reports of Development Impact Fees within 180 days of the close of the fiscal year.
The reports must describe the fee, the amount of the fees collected, interest earned, and identification of any expenditures from those funds. The code also specifies that reports must be reviewed by the City Council at a regularly scheduled meeting not less than 15 days following release to the public. The FY2022-23 Development Impact Fee Annual Report was released for public review on November 21, 2023.
The FY 2022-23 Development Impact Fee Annual Report is attached for City Council's review and approval (Attachment 1). A summary of the fees collected and expenditures incurred in FY 2022-23 are included in the Financial Summary Report section.
Staff recommends that the City Council receive and file this Annual Report. Staff also requests the adoption of the attached resolution (Attachment 2), continuing the citywide traffic impact fee for new development in the City. The resolution incorporates the recommendations from the Traffic Impact Fee Ad Hoc Committee and staff.
Traffic Impact Fee Ad Hoc Committee - Annual Review
The Traffic Impact Fee Ad Hoc Committee and staff met on November 2, 2023 to review the traffic impact fee program and calculation. Recently completed projects, consideration of active transportation projects, and the available traffic impact fee fund balance were accounted for in this review.
Attachment 4 provides the calculation of the traffic impact fee of $231 per Average Daily Trip (ADT) based on a revised list of capital improvement projects and the inclusion of Active Transportation projects. Following a review of the fee analysis and staff input, the Ad Hoc Committee recommended to continue the current traffic impact fee of $235 per ADT with the inclusion of Active Transportation projects in the Traffic Impact Fee program. In addition, the Ad Hoc Committee recommended to continue the allocation of up to ten percent (10%) of traffic impact fees towards traffic signal synchronization projects.
The Ad Hoc Committee also recommended to continue to provide a five percent (5%) reduction in automobile trips for development projects due to the implementation of the Active Transportation Plan (ATP) and an additional five percent (5%) reduction in ADT if a development proposes to implement active transportation improvements beyond typical code requirements. The improvements have to be substantial such as addition of a multipurpose trail, conversion of lower-class active bicycle facility to a higher-class bicycle facility, or enhanced pedestrian improvements in the vicinity of the project.
The Fiscal Year 2022-23 Traffic Impact Report (Attachment 6) depicts the opening balance, the ending balance on June 30, 2023, interest earned, revenues, expenditures, and unexpended funds from the Citywide Traffic Impact Fee Account. This attachment also shows that there are no funds unexpended or uncommitted in the account five (5) or more years after deposit and that no administrative costs have been charged to the fee account. The accounting was presented to the Committee at their meeting on November 2, 2023, and was approved.
As required by the Government Code, the updated Capital Improvement Plan (CIP) is contained in the Fiscal Year 2023-24 adopted budget and remains valid for the current traffic impact fee review. The traffic impact fee account information, including the interest earned, shown in Attachment 6, is available for public review.
ALTERNATIVES:
The City Council may choose to reject all or part of the Annual Report as presented. California Government Code Section 66006 requires that the report be reviewed at a public meeting.
FISCAL REVIEW:
There is no fiscal impact related to this item, as this is solely the legally required annual report of the development impact fee activity for the Fiscal Year ended June 30, 2023, and traffic impact fee analysis.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this report and approves as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item is administrative in nature.
CONCLUSION:
Staff recommends the City Council:
1. Receive and file the Development Impact Fees Annual Report (Attachment 1) for the Fiscal Year ended June 30, 2023.
2. Adopt the attached resolution (Attachment 2) continuing the citywide traffic impact fee for new development that incorporates recommendations from the Traffic Impact Fee Ad Hoc Committee and staff, which include:
• Continue a traffic impact fee of $235 per Average Daily Trip (ADT) based on the Capital Improvement Projects in Attachment 4 and Active Transportation projects in the adopted Active Transportation Plan (ATP).
• Approve allocation of up to ten percent (10%) of traffic impact fees towards traffic signal synchronization projects.
• Approve a five percent (5%) reduction in automobile trips as a result of ATP implementation and an additional five percent (5%) reduction in automobile trips for developments proposing to implement active transportation improvements beyond typical development requirements.
• Approve the annual accounting of the Citywide Traffic Impact Fee Program (Attachment 6).