The URL can be used to link to this page

Home My WebLink About05 - CC-6 - Development Impact Fees Annual Report - 12/17/2019FISCAL YEAR 2018-19 DEVELOPMENT IMPACT FEE ANNUAL REPORT The City of Costa Mesa has adopted four types of development impact fees that it imposes on development projects: Park Development Fees, Drainage Impact Fees, Traffic Impact Fees and Fire System Development Fees. Pursuant to the Mitigation Fee Act, as provided in Section 66006 of the California Government Code, the City is required to make available for public review a summary of its development impact fees. Type of Development Impact Fees The City imposes the following four development impact fees: 1.Park Development Impact Fees (Quimby Act Fees): This fee provides funding for additional or improved park and/or recreation facility improvements for which the need is generated by new development within the City. 2.Drainage Impact Fees: This fee provides funding for additional construction and maintenance of the City’s drainage system for which the need is generated by new development or redevelopment within the City. 3.Traffic Impact Fees: This fee provides funding for additional or improved traffic signal, operation, and infrastructure improvements for which the need is generated by new or expanding development within the City. 4.Fire System Development Fees: This fee provides funding for additional fire protection facilities and equipment for which the need is generated by future development within the North Costa Mesa area. This fee is only levied against five identified developments: Home Ranch, South Coast Plaza Town Center, South Coast Metro Center, and Sakioka Farms’ Lots 1 and 2. Amount of Fees The amounts of development impact fees are described below: 1.Park Development Fees (Quimby Act Fees): The table below indicates the applicable park development fee per unit that will be applied to new residential projects based on the net increase in residential units. Development Type Fee per Unit Single-family Dwelling Unit $13,572.00 Multi-family Dwelling Unit $13,829.00 Apartment Dwelling Unit $5,000.00 ATTACHMENT 1 2. Drainage Fees: The table below indicates the applicable drainage impact fee per acre that will be applied to new or redeveloped projects. Development Type Fee per Acre Low Density Residential Use $3,141.50 Medium Density Residential Use $3,769.50 High Density Residential Use $5,026.00 Commercial / Industrial Use $5,654.50 3. Traffic Impact Fees: The citywide Traffic Impact Fee is assessed on the increased number of average daily trips generated by the proposed project. The fee was $181 per daily trip from November 21, 2017 to November 13, 2018 and increased to $235 per daily trip beginning November 14, 2018. 4. Fire System Development Fees: The fee is $0.285 per square foot of new commercial, industrial or residential development. Summary of Development Impact Fee Activities Including Fees Collected, Interest Earned and Beginning and Ending Fund Balances A summary of activities in each type of development impact fee for fiscal year ended June 30, 2019 is described below: Park Development Fees Drainage Fees Traffic Impact Fees Fire System Protection Fees Revenues Fees 2,299,373$ 268,800$ 182,166$ -$ Investment Earnings 254,347 57,202 177,173 5,865 Revenue Subtotal 2,553,720 326,002 359,339 5,865 Expenditures 1,909,263 56,979 67,090 - Transfers in/(out)(3,842) - - - Change in Fund Balance 640,615 269,023 292,249 5,865 Beginning Fund Balance 5,199,671 1,202,490 4,259,249 150,981 Ending Fund Balance 5,840,286$ 1,471,513$ 4,551,498$ 156,846$ Summary of Development Impact Fees for Fiscal Year Ended June 30, 2019 Expenditures State law requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the costs of the public improvement that was funded with fees. A summary of improvements is provided below: Construction Commencement Date for Incomplete Improvements Not applicable at this time. Interfund Transfers and Loans The Park Development Fees Fund transferred $3,842 to the Capital Improvements Fund for Fairview Park Vernal Pool Watershed Restoration project. Amount of Refunds No refunds of any of these funds were made or required in fiscal year 2018-19. Improvement Fee Used Amount of Fees Expended % of Cost Funded by Fees Fairview Park Bluffs Park Development Fees 151,406 100% Fairview Park Improvements Park Development Fees 198,810 100% Fairview Park Master Plan Habitat Restoration Park Development Fees 54,854 100% Jack Hammett Field Upgrade Park Development Fees 63,634 100% Neighborhood Community Center - Library Development Park Development Fees 1,430,824 100% Citywide Storm Drain Improvements Drainage Fees 56,979 100% Hyland/MacArthur Intersection Improvements Traffic Impact Fees 58,148 100% West 17th Street Design Newport Westside Traffic Impact Fees 5,842 100% Newport Boulevard Widen 19th to 17th Street Traffic Impact Fees 3,100 100% Expenditures by Improvements for Fiscal Year 2018-19 CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 17, 2019 ITEM NUMBER: CC-6 SUBJECT: DEVELOPMENT IMPACT FEES ANNUAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 DATE: NOVEMBER 25, 2019 FROM: FINANCE DEPARTMENT/ADMINISTRATION DIVISION PRESENTATION BY: KELLY A. TELFORD, CPA, FINANCE DIRECTOR FOR FURTHER INFORMATION CONTACT: JENNIFER KING, ASSISTANT FINANCE DIRECTOR, AT (714) 754-5219 RECOMMENDATION: Staff recommends that the City Council receive and file the Development Impact Fees Annual Report for the Fiscal Year ended June 30, 2019. BACKGROUND: Pursuant to Section 66006 of the California Government Code, local agencies are authorized to condition approval of development projects on the payment of development impact fees for the purpose of defraying all or a portion of the cost of public facilities related to the development project. The Mitigation Fee Act, as provided in Section 66006 of the California Government Code, regulates the means by which public agencies collect, maintain, and spend development impact fees imposed on development projects. The regulations include specific requirements pertaining to governmental accounting, spending, and annual reporting of development impact fees. Each year, within the first 180 days following the previous fiscal year, the City is required to make available to the public an annual report of each mitigation fee account. This annual report must include the following: 1) A brief description of the type of fee in the account or fund; 2) The amount of the fee; 3) The beginning and ending balance of the account or fund; 4) The amount of the fees collected and interest earned; 2 5) Identification of each public improvement on which fees were expended and the total amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees; 6) An identification of an approximate date by which the construction of the public improvements will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, and the public improvement remains incomplete; 7) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan; and 8) The amount of any refunds made pursuant to Section 66001(e) and the amount of any allocations pursuant to Section 66001(f). Moreover, after a 15-day public review period, the City is required to review the Annual Report at the next regularly scheduled public meeting. This report was filed with the City Clerk’s Office and available for public review on December 2, 2019. ANALYSIS: The attached Development Impact Fees Annual Report provides a detailed summary of the City’s development impact fees for the fiscal year ended June 30, 2019. The City of Costa Mesa has adopted four (4) types of development impact fees, including Park Development Impact Fees, Drainage Impact Fees, Traffic Impact Fees, and Fire System Development Fees. A brief summary of the fees are referenced herein: 1) Park Development Impact Fees: provide funding for additional or improved park and/or recreation facility improvements for which the need is generated by new development within the City. 2) Drainage Impact Fees: provide funding for additional construction and maintenance of the City’s drainage system for which the need is generated by new development or redevelopment in the City. 3) Traffic Impact Fees: provide funding for additional or improved traffic signal, operation, and infrastructure improvements for which the need is generated by new or expanding development within the City. 4) Fire System Development Fees: provide funding for additional fire protection facilities and equipment for which the need is generated by future development within the North Costa Mesa area. 3 In accordance with Section 66008 of the Mitigation Fee Act, these fees must be expended for public improvements solely and exclusively for the purpose for which it is collected and cannot be levied, collected or imposed for general revenue purposes. These fees have been collectively spent on the projects below with a more detailed breakdown referenced in Attachment 1: 1) Citywide Storm Drain Improvements 2) Fairview Park Bluffs 3) Fairview Park Improvements 4) Fairview Park Master Plan Habitat Restoration 5) Hyland/MacArthur Intersection Improvements 6) Jack Hammett Field Upgrade 7) Lions Park Campus Improvements 8) Newport Boulevard Improvements, 17th to 19th Street 9) West 17th Street Design, Newport Staff recommends that the City Council receive and file this Annual Report. ALTERNATIVES CONSIDERED: 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 by the recommended action as this report is not requesting that City Council adopt new development impact fees, but is reporting development impact fee activity for the Fiscal Year ended June 30, 2019. LEGAL REVIEW: The City Attorney’s Office has reviewed and approved this agenda report. CITY COUNCIL GOALS & PRIORITIES: This item is administrative in nature. CONCLUSION: Staff recommends that the City Council receive and file the Development Impact Fees Annual Report for the Fiscal Year ended June 30, 2019. 4 _________________________________ _________________________________ AMBER HASTON JENNIFER KING Management Analyst Assistant Finance Director _________________________________ _________________________________ KELLY A. TELFORD, CPA KIMBERLY HALL BARLOW Finance Director City Attorney Attachments: 1. Development Impact Fee Annual Report for Fiscal Year Ended June 30, 2019.