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Home My WebLink AboutPW Traffic Mitigation Fee Report FY2011-12O,TY 01�4#t Department: Public Works Agenda Item No: 5.e Meeting Date: March 18, 2013 Prepared by: ity Manager Approv Director of Public Works (KK) File No.01.26.01 SUBJECT: Traffic mitigation fee report. and resolution on fees held over five years RECOMMENDATION: Adopt resolution. BACKGROUND: Impact fees are a monetary exaction, other than a tax or special assessment, charged by a city to a project as part of the project approval. The purpose of the fees is to defray the cost of public facilities related to the development project. The State adopted Assembly Bill 1600 (California Government Code 66000 - 66025) that established requirements for how cities collect, maintain and spend impact fees. AB1600 includes other provisions on the charging of planning related fees and public hearing notice for fee increases, but the focus of this report is on the impact fee portions of the law. Impact fees must demonstrate a reasonable connection between the fee charged and the improvement cost; must be deposited in a separate account, segregated from the general fund of the city; and used only for the identified improvements. Additionally, cities must make annual reports of specified information on the fees collected. These annual reports are to be available to the public within 180 days of the end of the fiscal year and the city must review the report at a public meeting not less than 15 days after the information is made available. Cities are also required by AB1600 to spend or commit the fees within 5 years of collection, or return them to the developer unless a finding can be made that a reasonable relationship remains between current the need for the fee and the purpose for which they were collected. These funds must be reported, and the required finding made on the fifth year and every 5 years thereafter. A review of the City's fees charged for development has determined that the only fee subject to AB1600 reporting is the Traffic Mitigation Fee. In the past, the City assumed that the adoption of the Master Fee Schedule met the reporting requirement. In order to insure the proper reporting, an AB1600 annual and 5 year report will be done separate from the Master Fee Schedule actions; this Report is the first annual and five year report. Another 5 year report will be due at the end of fiscal; year 2017-18. ANALYSIS: Specific information is required to be included in the annual Traffic Mitigation Fee Report as follows: 1. Description of the fee: The Traffic Mitigation Fee is charged on new development projects, and is intended to pay for the circulation system improvements as identified in General Plan 2020 needed to accommodate the development. FOR CITY CLERK ONLY File No.: q -10-D- Cl) Council Meeting: f Disposition: ke5o c, 0 r-, 3 / I SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 2. Amount of the fee Each new A.M. and P.M. peak hour trips generated by a development is charged $4,624 3. Beginning and ending balance of the account; and 4. Amount of fee collected and any interest accrued Fund balance July 1, 2011 $8,656,069 Revenues Interest income 25,935 Charges model runs 8,492 Total revenues 34,427 Expenditures 70,565 Model Updates Total Expenditures 70,565 Net Change Fund Balance (36,138) Fund Balance June 30, 2012 $8,619,931 5. List of improvements on which fees were expended, amount of expenditure and total percentage of cost covered by fee. The number of peak trips generated by a development, the basis for the charge calculation, is determined through a traffic model developed and maintained in the Public Works Department Traffic Division. The total cost of staff time to update and maintain the model was $70,565, and was 100% of the cost. 6. Approximate date by which construction will commence when City has determined that sufficient funds have been collected. The projects identified in the General Plan 2020 are major infrastructure improvements that require substantial State and Federal funding in addition to the Traffic Mitigation Fee. The City's five year Capital Improvement Program approved by the City Council identified the Freitas Parkway and Las Gallinas Avenue intersection and roadway improvement to be designed and constructed in 201312014 and $1,800,000 from the traffic mitigation fee is ear marked for the project 7. Any interfund loan or transfer, including the public improvement where it will be spent No interfund transfers were made. 8. Refunds made due to sufficient funds being collected. No refunds were made. Following is an aging analysis of the accumulated balance. Using the accounting method known as FIFO (first in, first out), which means that the first revenue received is assumed to be the first spent, staff analyzed the annual balances of the past 5 fiscal years to determine what portion, if any, was more than 5 or more years old. $6,985,521 is more than 5 years old. 0-1 year 1-2 years 2-3 Years 3-4 Years 4-5 Years 5+ years FY 11-12 FY 10-11 FY 10 FY 08-09 FY 08 Since 1989 619,931 I $34,427 $67,754 $117,441. $288,5021 $1,126,286 1 $6,985,521 A finding must be made that there is a reasonable relationship between the current need for the fees and the purposes for which they were originally charged. While development has occurred, current traffic conditions have not warranted the improvements listed in the General Plan 2020. In addition, the cost estimates for these improvements indicate that the funds available are not sufficient to design and construct them until State and Federal funds are secured to supplement the project cost. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pa2c: 3 FISCAL IMPACT: There is no fiscal impact unless the required finding identifying a reasonable relationship between the current need for the fees for funds held over 5 years and the purposes for which they were originally charged cannot be made. In that instance, the accrued funds must be returned to the developers who paid the fee. OPTIONS: • Accept the report and findings as recommended • Amend the report and finding • Reject the report and finding. ACTION REQUIRED: Accept the Traffic Mitigation Fee Report and adopt the resolution making a finding that a reasonable relationship exists between the current need for the Traffic Mitigation Fees held over 5 years and the purposes for which they were originally charged. Enclosure: Resolution RESOLUTION NO. 13517 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL ON TRAFFIC MITIGATION FEES HELD OVER 5 YEARS WHEREAS, the City's Circulation Element of General Plan 2020 identifies improvements necessitated by continued development in the City; and WHEREAS, the City has adopted a Capital Improvement program that has been developed to prioritize and guide the construction of the needed improvements and allocates funds to construct the improvements as mitigation for continue development in the City; and WHEREAS, these improvements are scheduled to be constructed over time as sufficient funds become available; and WHEREAS, these identified improvements are of such size that sufficient funds have not been collected or obtained in order to construct these improvements by expending fees collected within the five year expenditure period provided by Government Code Section 66001(d); and WHEREAS, there continues to be a distinct nexus between continued development and the necessity to mitigate development impacts on traffic circulation. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby finds that a reasonable relationship exists between the current need for the Traffic Mitigation Fees held over 5 years and the purposes for which they were originally charged. I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 18th day of March, 2013 by the following vote, to wit: AYES: COUNCILMEMBERS: Colin, Connolly, Heller, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUINICILMEMBERS: None ESTHER C. BEIRNE, City Clerk File: 01.26.01 -W 0IM03.FA ZfAWA AAAWA ZtA INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA/ SRCC AGENDA ITEM NO. 5.e DATE OF MEETING: 3/18/13 FROM: Nader Mansourian DEPARTMENT: Public Works DATE: 3/12/13 TITLE OF DOCUMENT: TRAFFIC MITIGATION FEE REPORT AND RESOLUTION ON FEES HELD OVER FIVE YEARS Department Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City Manager isignature) APPROVED AS TO FORM: F-vL-- City Attorney (signaturey I