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Home My WebLink AboutPW Traffic Mitigation Fee Report FY2013-14CITY'n. I OF Agenda Item No: 3. h Meeting Date: August 17, 2015 SAN RAFAEL CITY COUNCIL AGENDA REPORT" Department: Public Works Prepared by:.,. °:rc:..wCity Manager Approval: Acting Director of Public Works File No.01.26.01 TOPIC: ANNUAL TRAFFIC MITIGATION FEE REPORT SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ACCEPTING THE ANNUAL TRAFFIC MITIGATION FEE REPORT AND APPROVING THE DETERMINATION THAT A REASONABLE RELATIONSHIP EXISTS BETWEEN THE CURRENT NEED FOR TRAFFIC MITIGATION FEES HELD OVER FIVE YEARS AND THE PURPOSES FOR WHICH THEY WERE ORIGINALLY COLLECTED. 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 process. Their purpose is to defray the cost of public facilities necessitated by the development project. Assembly Bill 1600 (California Government Code 66000 — 66025) established requirements for how cities collect, maintain and spend impact fees. The focus of this report is on the impact fee portion 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 city's general fund, and used only for the identified improvements. AB1600 requires cities 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 the current need for the fee and the purpose for which it was collected. (Gov. Code §66001(d).) A review of the City's various development fees determined that the Trak Mitigation Fee is the only such fee subject to AB1600 reporting. Pursuant to Government Code section 66006, cities must publish annual reports on these fees, which are to be available to the public within 6 months of the end of a fiscal year. In addition, the city must review the report at a public meeting not less than 15 days after the information is made available. To assure ongoing AB1600 compliance, staff will submit annual and 5 year reports no later than December 31 of each year. FOR CITY CLERK ONLY File No.: 9-10-2(1) x 9-3-40 Council Meeting: 08/17/2015 Disposition: Resolution 13992 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 ANALYSIS: The Traffic Mitigation Fee report consists of the following elements: Fee description: The Traffic Mitigation Fee is charged to new development projects. It is intended to pay for those circulation system improvements identified in General Plan 2020 needed to accommodate the development. 2. Amount of the fee: Each new A.M. and P.M. peak hour trip generated by a development is charged $4,246. 3. Account beginning and ending balance, fees collected and interest accrued. - Fund balance July 1, 2013 $10,880,307 Revenue 2-3 Years Interest income 20,094 Model run charges 148,757 Total revenue 168,851 Expenditures Unspent & Model Updates 80,053 Total Expenditures 80,053 Net Change Fund Balance 88,798 Fund Balance June 30, 2014 $10,969,105 4. 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 fee calculation, is determined by a traffic model developed and maintained in the Public Works Department Traffic Division. For FY 13-14, the total cost of staff time to update and maintain the model was $80,053. 5. Approximate date by which construction will commence when City has determined that sufficient funds have been collected. Projects identified in General plan 2020 are major infrastructure improvements which often require substantial state and federal funding in addition to Traffic Mitigation resources. Two near-term projects will utilize Traffic Mitigation funds: • Regional Transportation Enhancements: $1,000,000 (approximate amount pending award of construction contract) • Freitas -Las Gallinas Intersection Improvements: $1,500,000 (approximate amount pending award of construction contract) 6. Any inter und loan or transfer, including the public improvement where it will be spent: No interfund transfers were made. 7. Refunds made due to sufficient funds being collected: No refunds were made. An analysis of the accumulated balance follows. A first in, first out (FIFO) accounting method assumes the first revenue received is the first spent. Staff analyzed the annual balances for the past 5 fiscal years and determined that $8,242,929 has been held for more than 5 years, as shown in the following table: Fund #246 0-1 year 1-2 years 2-3 Years 3-4 Years 4-5 Years 5+ years Unspent & Unspent & Unspent & Unspent & Unspent & Unspent & Balance as received in received in received in received in received in received 1/1/89 of 6/30/14 FY 13-14 FY 12-13 FY 11-12 FY 10-11 FY 09-10 to 6/30/09 $10,969,105 $168,851 $2,337,703 $34,427 $67,754 $117,741 $8,242,929 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 A finding must be made that a reasonable relationship exists between the current need for the fees and the purposes for which they were originally charged. Current traffic conditions continue to warrant the improvements listed in General Plan 2020. The cost estimates for these improvements indicate that the funds available are not sufficient for design and construction until such time that state and/or federal funds are secured to supplement City resources. 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. COMMUNITY OUTREACH: New development projects which add AM and PM peak trips are identified through the design review process. Traffic Mitigation Fee assessments are noted as a condition of approval. Due to their size, projects listed in General Plan 2020 generally have a significant community impact. As such, they require public outreach as the development process proceeds. 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. RESOLUTION NO. 13992 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ACCEPTING THE ANNUAL TRAFFIC MITIGATION FEE REPORT AND APPROVING THE DETERMINATION THAT A REASONABLE RELATIONSHIP EXISTS BETWEEN THE CURRENT NEED FOR TRAFFIC MITIGATION FEES HELD OVER FIVE YEARS AND THE PURPOSES FOR WHICH THEY WERE ORIGINALLY COLLECTED. 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 which allocates funds to construct the improvements as mitigation for continued development; 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 insufficient funds have been collected or obtained to construct these improvements 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 17`h day of August 2015 by the following vote, to wit: AYES: COUNCILMEMBERS: Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Bushey ESTHER C. BEIRNE, City Clerk File: 01.26.01 ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval by the City Council. Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) 4 CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # 3. h Date of Meeting: 8/17/2015 From: Kevin McGowan Department: Public Works Date: 8/7/2015 Topic: Annual traffic Mitigation Fee Report Subject: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ACCEPTING THE ANNUAL TRAFFIC MITIGATION FEE REPORT AND APPROVING THE DETERMINATION THAT A RESONABLE RELATIONSHIP EXISTS BETWEEN THE CURRENT NEED FOR TRAFFIC MITIGATION FEES HELD OVER FIVE YEARS AND THE PURPOSES FOR WI.11CH THEY WERE ORIGINALLY COLLECTED. Type: ® Resolution ❑ Ordinance ❑ Professional Services Agreement ❑ Other: APPROVALS ❑ Finance Director Remarks: ® City Attorney Remarks: LG -Approved 8/8/15 with minor change to staff report. ® Author, review and accept City Attorney / Finance changes Remarks: A City Manager