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HomeMy WebLinkAbout101-Development Impact Fee Report.pdf SARATOGA CITY COUNCIL MEETING DATE: December 16, 2009 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Bob Edris & Mary Furey DIRECTOR: Mary Furey SUBJECT: Development Impact Fee Report RECOMMENDED ACTION: Review and accept report on the status of FY 2008/09 Development Impact Fees, commonly referred to as AB1600 requirements. 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 new demands on public resources resulting from the development of land and property and imposed as a condition of development approval. REPORT SUMMARY Saratoga has established two of these fees: the Park Development Fee and the Road Impact Fee. As required, this report provides: 1. A brief description of the type of fee 2. The amount of the fee 3. Beginning and ending balance of the fees 4. Fees collected and the interest earned if applicable 5. Identification of the public improvement the fees are used for, or planned to be used for 6. Fees expended during the year 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 Development Fees The City of Saratoga collects a fee for park development for increased usage and additional park requirements brought on by increased development within the City. The City requires the dedication of land, or imposes a requirement for the payment of fees, as a condition of subdivision approvals. 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 would allow the City to maintain its existing character as a small town community surrounded by rural and open space. The Park 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 ($1.5 million per acre) The following table summarizes the activity for the Park Development Fees collected for FY 2008/09: Fiscal Year Fiscal Year Fiscal Year 2006/07 2007/08 2008/09 Beginning balance -$ 155,868$ (58,508)$ Revenues: Park Development Fees 41,400 General Fund Transfer 250,000 Expenditures & Other Uses: Capital Projects 94,132 214,376 Total available for future projects 155,868$ (58,508)$ (17,108)$ For FY 2008/09, the Park Development Fee was applied to the West Valley College Soccer Field capital project, which built one new soccer fields on West Valley College land. This new park project was approved in FY 2006/07 to be funded in part with Park Development Fees. The project expenditures exceeded available fees and is shown above carrying forward with a negative balance. Future Park Development Fees are reimbursing the capital project as received. Road Impact Fees The Road Impact Fee became effective July 1, 2008, to compensate for the impacts of construction and refuse vehicles on public roads resulting from new development and use of community resources. This fee is based on a 2006 study by CSG consultants, commissioned by the cities of Saratoga, Monte Sereno, Campbell, and Los Gatos, to determine the impact of construction vehicles and refuse vehicles on streets and roads, and to determine a fee to mitigate the costs of damage or deterioration in pavement. CSG Consultants determined the fee of $0.77 per $100 of building valuation was a fair assessment of the impact of construction related vehicles on Saratoga’s streets. Fees are payable at the time building permits are issued for development. Refuse vehicle impact fees are established at the same rate and became effective with the new refuse contract beginning with July 1, 2009 collections. The following table summaries the activity for the Road Impact Fee collected for FY 2008/09: Fiscal Year 2008/09 Beginning balance -$ Revenues: Road Impact Fees 298,846 Expenditures & Other Uses: Capital Projects 298,846 Total available for future proejcts -$ Fiscal Year 2008/09 Road Impact Fees were applied and expended toward the Street Resurfacing Capital Project which resurfaces various streets and roadways throughout Saratoga. Road Impact Fees will continue to be applied for this Capital Improvement Project purpose in the future. FISCAL IMPACTS: Development Impact Fees must 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