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