HomeMy WebLinkAbout101-Impact Fee Report.pdf
SARATOGA CITY COUNCIL MEETING DATE: January 5, 2011 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Mary Furey DIRECTOR: Mary Furey
SUBJECT: Development Impact Fee Report RECOMMENDED ACTION Staff recommends that the Council review and accept the annual AB1600 Development Impact Fee report for the year ended June
30, 2010. BACKGROUND As set forth in California Government Code Section 66000-66025, known as the Mitigation Fee Act, agencies which impose a fee as a condition of approval for a development
project are required to account for and report on the use of the fees within 180 days of fiscal year-end. Development impact fees are defined as a fee charged to compensate for demands
on public resources resulting from the development of land and property and imposed as a condition of development approval. Saratoga has established two of these fees: the Park-In-Lieu
Development Fee and the Road Impact Fee. REPORT SUMMARY As required under AB1600 accounting guidelines, this report provides: 1. A brief description of the type of fee; 2. The amount
of the fee; 3. Beginning and ending balances of the fees; 4. Total fees collected and the interest earned, if applicable; 5. Identification of the public improvement the fees were used
for; 6. Identification and timeline of public improvements any unexpended fees will be used for; 7. Description and uses for transfers or loans of fees, if applicable. The legislature
finds and declares that the timely and proper allocation of development fees promotes economic growth and is, therefore, a matter of statewide interest and concern. Park-In-Lieu Development
Fees The City of Saratoga requires either a dedication of land, or imposes a Park-In-Lieu fee of $20,700 on each new parcel as a condition of subdivision approval, to account for increased
usage and additional park requirements brought on by increased development within the City. Five acres of parkland per 1,000 residents is the standard promulgated by the National Recreation
and Parks Association and is a common metric utilized by other communities in California to measure adequacy of parkland. The 2007
Update to the Open Space and Conservation Element of the City’s General Plan recognized that additional parkland must be protected and established a goal of five acres of parkland per
1,000 acres. This amount of parkland allows the City to maintain its existing character as a small town community surrounded by rural and open space. The Park-In-Lieu Development Fee
of $20,700 per subdivided parcel is calculated based upon the formula: (2.76 people per household) X (5 acres per 1,000 residences) X ($1.5 million per acre) The following table summarizes
the activity for the Park-In-Lieu Development Fees collected and utilized as of June 30, 2010: Fiscal YearFiscal YearFiscal YearFiscal Year2006/072007/082008/092009/10Beginning balance-$
143,799$ (70,577)$ (29,177)$ Sources:Revenue -Park-In-Lieu Fees--41,400 20,700 Transfer in -General Fund250,000 ---Transfer in -Closed Park Project---275 Uses:CIP -West Valley Soccer
Field106,201 214,376 --Total available for future projects143,799$ (70,577)$ (29,177)$ (8,202)$ Park-In-Lieu Development Fees Park-In-Lieu Fee revenue received in FY 2009/10 was applied
to the outstanding balance of the West Valley College Soccer Field capital project. This project built a new soccer field on West Valley College land under a joint use agreement which
allows Saratoga youth sport organizations to use two of the college’s sport fields on Sundays, and also provides “Use Credits” to the City toward rent of West Valley College facilities
for recreation programs at a reduced rate. The remaining Park-In-Lieu Fee outstanding balance of $8,202 will be repaid from Park-In-Lieu fees received in FY 2010/11. Future impact fees
will be applied to park improvement projects, as directed by Council under the Capital Improvement Project budget process. Road Impact Fees In May of 2008, the City Council authorized
the establishment and collection of a Road Impact Fee (effective July 1, 2008) to offset the additional cost of street maintenance incurred as a result of damage to the city’s roadways
caused by heavy construction vehicles on public roads from new development. The fee is based on a 2006 study by CSG consultants, commissioned by the cities of Saratoga, Monte Sereno,
Campbell, and Los Gatos, which determined the impact of construction vehicles on streets and roads, and an appropriate fee to mitigate the costs of damage or deterioration in pavement.
CSG Consultants determined that a fee of $0.77 per $100 of building valuation was a fair assessment of the impact of construction related vehicles on Saratoga’s streets. Road Impact
Fees are payable at the time building permits are issued for development. Road Impact Fee revenues are appropriated directly to the Capital Improvement Plan’s Street Improvement Fund,
specifically into the Street Resurfacing and the Striping & Signage projects and used
to pay for increased street resurfacing and maintenance costs. The following table summarizes the Road Impact Fees collected and utilized as of June 30, 2010: Fiscal YearFiscal Year2008/092009/10Begi
nning balance-$ -$ Sources Revenues -Dev Road Impact Fee 298,846 343,913 Uses:CIP -Street Resurfacing Project298,846 343,913 Total available for future projects-$ -$ Road Impact Development
Fees The above Road Impact Development Fee schedule does not include solid waste vehicle road impact fee revenues collected under the West Valley Solid Waste Management Authority (WVSWMA)
contract with the City’s refuse contractor. AB1600 reporting requirements only apply to fees in connection with the approval of a development project. FISCAL IMPACTS: AB1600 fees do
not impact the General Fund. Revenues are remitted directly to Capital Project Funds and utilized for capital projects directly from these funds, within the current or following budget
year. City of Saratoga follows State requirements that development impact fees fees be used or appropriated to a specific project within 5 years for a specified purpose, or returned
to the developer/payee. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City would not be in compliance with California requirements. ALTERNATIVE ACTION: N/A FOLLOW UP ACTION:
N/A ADVERTISING, NOTICING AND PUBLIC CONTACT: N/A ATTACHMENTS: N/A