HomeMy WebLinkAbout2011/12/13 Item 03CITY COU NCI L
~1 STATEMENT
~`~~ CITY OF
CHULA VISTA
DECEMBER 13, 2011, Item
ITEM TITLE: REPORT REGARDING THE DEVELOPMENT IMPACT FEE,
PARK ACQUISITION AND DEVELOPMENT FEE, AND
TRUNK SEWER CAPITAL RESERVE FUNDS FOR THE
FISCAL YEAR ENDED JUNEGG3 11
SUBMITTED BY: ASSISTANT CITY MANAGE1~f~EVELOPMENT SERVICES
DIRECTOR
DIRECTOR OF FINANCE/TREASU ' '~j
DIRECTOR OF PUB I WORKS 1
REVIEWED BY: -CITY MANAGER
ASSISTANT CITY ANAGER 5
4/STHS VOTE: YES ~ NO ^X
SUMMARY
State Government Code Section 66000 requires local agencies assessing Development Impact
Fees (DIF) and sewer capacity charges to make available specified financial data to the public
each fiscal year. These reports satisfy that requirement and have been available in the City
Clerk's office for public review since November 15, 2011. Also included is the report on
Parkland Acquisition and Development (PAD) fees in the same report for ease of reference and
convenience to the public.
Local agencies are also required to make findings every five years for any DIF funds remaining
unexpended that identify the purpose of the fee and demonstrate a reasonable relationship
between the fee and the purpose for which it was charged. This year, the City has not identified
unexpended fees that were on deposit for five or more years.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with
the California Environmental Quality Act (CEQA) and has determined that filing of this annual
report is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it
will not result in a physical change to the environment; therefore, pursuant to Section
15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA.
Although environmental review is not necessary at this time, once projects that will be funded
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DECEMBER 13, 2011, Item 3
Page 2 of 7
through the DIFs have been defined, environmental review will be required and a CEQA
determination completed prior to commencing any projects.
RECOMMENDATION
Council accepts the report.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
The City of Chula Vista collects several types of Development Impact Fees (DIF), Parkland
Acquisition and Development fee, and Trunk Sewer Capital Reserve fee, which were assessed
during the fiscal year ending June 30, 2011. The major categories of facilities financed via DIF
include transportation, traffic signals, pedestrian bridges, drainage, sewer, and public facilities.
Development Impact Fees are updated in two manners, either via a comprehensive DIF program
review, or via a Council enacted automatic annual adjustment, based upon an appropriate index.
In October of 2010, the following automatic index based annual adjustments went into effect:
• Traffic Signal fee was increased from $30.73 to $31.80 per average daily vehicle trip.
• Otay Ranch Village 11 Pedestrian Bridge DIF was increased from $2,126 to $2,170 per
single-family dwelling unit.
• Parkland Acquisition and Development fee was increased from $9,574 to $9,733 for
Areas West of I-805 and $17,256 to $17,415 for Areas East of I-805
Poggi Canyon Sewer DIF was comprehensively reviewed and updated in June 2009. The fee
was reduced to $265 per EDU and took effect in FY10.
Other fees addressed in this report remain at the same rate as the previous fiscal year.
DEVELOPMENT IMPACT FEES
TRANSPORTATION DEVELOPMENT IMPACT FEE (TDIF)
This fee was adopted on January 12, 1988 by Ordinance 2251 to finance and coordinate the
construction of new transportation facilities so that streets are built when needed. This fee is
applicable to all new development east of Interstate 805. Prior to the program, streets were built
by developers in a fragmented fashion with 6-lane facilities, necking down to 2-lanes and
expanding back to 6 lanes again. In addition, there was a fairness issue since some developers
fronted on large streets and others did not. Now all developers in the Eastern portion of Chula
Vista pay the same fee per dwelling unit and either the City constructs the street or a developer
does. If the developer constructs the street they will receive a TDIF fee credit when they apply
for a building permit.
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DECEMBER 13, 2011, Item ~
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The TDIF program was last comprehensively updated in 2005, increasing the fee per EDU to
$10,050. This fee is subject to an annual index-based adjustment. The October 2009 automatic
index based annual adjustment increased the TDIF from $11,317 to $11,836 per EDU. In
January of 2010 the City Council approved Resolution 2010-017 rolling back this increase,
returning the fee to its previous level of $11,317 per EDU. This action was recommended in
consideration of the depressed development market and downward trends in construction costs.
The resolution adopted by the City Council included a provision to hold the TDIF fee at 2009
levels through October 2011. Consistent with this resolution, no index-based adjustment was
applied to the TDIF in October 2010. The fees for other land use types, as well as detailed FY
2010/11 fmancial information, are presented in Attachment A, Schedule 1.
WESTERN TRANSPORTATION DEVELOPMENT IMPACT FEE (WTDIF)
This fee was adopted on March 18, 2008 by Ordinances 3106 to 3110 to finance and coordinate
the construction of new transportation facilities on the west side of the City as well as spread the
costs associated with the construction of the facilities equitably among the developing properties
within the benefit area. This fee is applicable to all new development west of Interstate 805.
This fee is subject to an annual index-based adjustment in July 1 of each year beginning in 2009.
The first such increase went into effect in July 2009, increasing the fee from $3,243 to $3,308
per EDU. In January of 2010 the City Council approved Resolution 2010-017 rolling back this
increase, returning the fee to its previous level of $3,243 per EDU. This action was
recommended in consideration of the depressed development market and downward trends in
construction costs. The resolution adopted by the City Council included a provision to hold the
WTDIF fee at 2009 levels through October 2011. Consistent with this resolution, no index-
based adjustment was applied to the WTDIF in October 2010. The fees for other land use types,
as well as detailed FY 2010/11 financial information, are presented in Attachment A, Schedule 2.
TRAFFIC SIGNAL FEE
This fee was adopted to provide for the projected traffic signal needs of the City that result from
increases in traffic .volume caused by development. As funds are accumulated they are expended
on traffic signal projects. This citywide fee is assessed per trip generated, and was increased
from $30.73 to $31.80 per trip in October 2010. Detailed FY 2010/11 financial information is
presented in Attachment A, Schedule 3.
TELEGRAPH CANYON DRAINAGE DIF
This fee is applicable to all new development within the Telegraph Canyon Drainage Basin and
has remained unchanged since 1998. Detailed FY 2010/11 financial information is presented in
Attachment A, Schedule 4.
TELEGRAPH CANYON GRAVITY SEWER DIF
This fee is for the expansion of the trunk sewer within the basin for tributary properties. The fee
has remained unchanged at $216.50 per EDU since 1998. Detailed FY 2010/11 fmancial
information is presented in Attachment A, Schedule 5.
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DECEMBER 13, 2011, Item ~
Page 4 of 7
POGGI CANYON SEWER BASIN DEVELOPMENT IMPACT FEE
This fee was adopted to provide the necessary financing to construct a trunk sewer in the Poggi
Canyon Sewer Basin from a proposed regional trunk sewer west of Interstate 805 along Olympic
Parkway to the boundary of Eastlake. The fee was established at $400 per equivalent dwelling
unit in 1997. In June of 2009, the Poggi Canyon was updated and the fee was reduced from
$400 to $265 per EDU. This change went into effect in FY10. Detailed FY 2010/11 financial
information is presented in Attachment A, Schedule 5.
SALT CREEK SEWER BASIN DEVELOPMENT IMPACT FEE
This fee was adopted to provide the necessary financing to construct the Salt Creek Interceptor.
This fee is applicable to the Salt Creek Sewer Basin, a portion of the Upper Otay Lake Basin
north of the Salt Creek Sewer Basin, Wolf Canyon Basin, and a portion of the Lower Otay Lake
Basin east of the Salt Creek Sewer Basin. The fee for FY 2009/10 was $1,330 per EDU under
Ordinance 2974-A dated August 17, 2004. Detailed FY 2010/11 financial information is
presented in Attachment A, Schedule 5.
OTAY RANCH VILLAGE 1, 2, 5, & 6 PEDESTRIAN BRIDGE DEVELOPMENT
IMPACT FEE
This fee was adopted to provide the necessary financing to construct the facilities. The fee
program was amended in February 2007 to include Otay Ranch Village 2. This action amended
both the program's area of benefit and facility list. Construction costs were also revised and a
new fee of $1,114 per EDU was established and has remained unchanged. Detailed FY 2010/11
financial information is presented in Attachment A, Schedule 6.
OTAY RANCH VILLAGE 11 PEDESTRIAN BRIDGE DEVELOPMENT IMPACT FEE
This fee was adopted to provide the necessary financing to construct four pedestrian bridges in
Otay Ranch Village 11. This fee was increased from $2,126 to $2,170 per EDU in October of
2010. Detailed FY 2010/11 financial information is presented in Attachment A, Schedule 6.
PUBLIC FACILITIES DIF
The Public Facilities DIF is a citywide fee with several components levied to fund that portion of
public facilities projects attributable to new development. The total fee for all components was
increased in October 2008 from $8,136 to $8,735 per single-family EDU and has remained
unchanged. Detailed FY 2010/11 financial information is presented in Attachment A, Schedule
7. The active components of the Public Facilities DIF with the current fees are as follows:
ADMINISTRATION ($563) -Administration of the Public Facilities DIF program,
overseeing of expenditures and revenues collected, preparation of updates, calculation of
costs, etc.
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DECEMBER 13, 2011, Item
Page 5 of 7
CIVIC CENTER EXPANSION ($2,458) -Expansion of the Civic Center per the 1989
Civic Center Master Plan to provide sufficient building space and parking due to growth
and development. The Civic Center Master Plan was updated in July 2001 to include the
Otay Ranch impacts.
POLICE FACILITY ($1,565) -Accommodation of the building space needs per the
Civic Center Master Plan, which included the newly constructed police facility,
upgrading of the communications center and installation of new communication consoles.
Also included is the purchase and installation of a computer aided dispatch system
(CAD), Police Records Management System, and Mobile Data Terminals.
CORPORATION YARD RELOCATION ($421) -Relocation of the City's Public
Works Center from the bay front area to the more centrally located site on Maxwell
Road.
LIBRARIES ($1,413) -Improvements include construction of the South Chula Vista
library and Eastern Territories libraries, and installation of a new automated library
system. This component is based on the updated Library Master Plan.
FIRE SUPPRESSION SYSTEM ($1,243) -Projects include the relocation of Fire
Stations 3 and 4, construction of a fire training tower and classroom, purchase of a brush
rig, installation of a radio communications tower and construction of various fire stations
in the Eastern section of the City. This fee reflects the nine station network called for in
the 1999 Fire Station Master Plan (current Master Plan).
MAJOR RECREATION FACILITIES ($1,072) -New component adopted in
November 2002 to build major recreation facilities created by new development such as
community centers, gymnasiums, swimming pools, and senior/teen centers.
Although the majority of project costs are to be borne by new development, it is important to
note that various components or specific projects within a component contain both a City and
new development cost share. The City share often reflects "joint impetus" projects, which are
necessitated by growth and non-growth factors and/or the City's obligation to correct pre-
existing space/equipment deficiencies. The PFDIF fees only relate to new development's cost
share for each component.
PARKLAND ACQUISITION AND DEVELOPMENT (PAD) FEES
This in-lieu fee was adopted by the City to acquire neighborhood and community parkland and
to construct parks and recreational facilities. The Parkland Acquisition and Development fee
was increased in October 2010 from $9,574 to $9,733 for Areas West of I-805 and $17,256 to
$17,415 for Areas East of I-805. Detailed FY 2010/11 financial information is presented on
Attachment B.
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DECEMBER 13, ZO11, Item
Page 6 of 7
TRUNK SEWER CAPITAL RESERVE FEES
This fee was established to pay all or part of the cost and expense to enlarge sewer facilities of
the City so as to enhance efficiency of utilization and/or adequacy of sewer capacity. Detailed
FY 2010/11 financial information is presented on Attachment C.
FY 2010-11 FINANCIAL INFORMATION
Attachment A, Schedules 1 through 6 reports the required financial information for all DIF, other
than the Public Facilities DIF. Attachment A, Schedule 7 reports the required financial
information for the Public Facilities DIF and its .components. Attachment B reports the required
financial information for the PAD fees. Attachment C reports the required information for the
Trunk Sewer Capital Reserve fees. The schedules contain the following items:
• The beginning balances as of July 1, 2010.
• The fees received during the fiscal year ended June 30, 2011.
• Other miscellaneous revenues received during the fiscal year ended June 30, 2011.
• The interest earned from investing the cash balances available in each fund during the
fiscal year ended June 30, 2011.
• The expenditures from each of the funds during the fiscal year ended June 30, 2011.
• A description of each capital project with expenditures funded entirely or in part by
DIF/PAD/Trunk Sewer in FY 2010/11 and the percentage of the project funded by this fee
through FY 2010/1 1. More detailed information on any project is available in the annual
Capital Improvement Project (CIP) Budget.
• Information on any loans from DIF/PAD/Trunk Sewer Capital Reserve funds during FY
2010/11.
• The ending balances as of June 30, 2011 for each of the DIF/PAD/Trunk Sewer Capital
Reserve Funds.
• The amount, description and purpose of the fee.
• An identification of an approximate date by which the construction of the public
improvement will commence.
The ending balances as of June 30, 2011 are in the process of being audited as part of the audit of
citywide financial statements, and are therefore subject to adjustment.
FINDINGS REQUIRED FOR FUNDS IN POSSESSION OVER 5 YEARS
Government Code Section 66001(d) requires the local agency to make findings every five years
with respect to any portion of the DIF fees remaining unexpended to identify the purpose for
which it was charged. There are no funds currently on account remaining unexpended for five or
more years, therefore no additional finding is necessary.
Copies of this report were sent to the Building Industry Association of San Diego, the Eastlake
Development Company, the McMillin Companies, the Otay Ranch Company, the Otay Land
Company, Trimark Pacific Homes and Brookfield Homes.
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DECEMBER 13, 2011, Item
Page 7 of 7
DECISION MAKER CONFLICT
Staff has determined that the action contemplated by this item is ministerial, secretarial, manual,
or clerical in nature and does not require the City Council members to make or participate in
making a governmental decision, pursuant to California Code of Regulations section 18702.4(a}.
Consequently, this item does not present a conflict under the Political Reform Act (Cal. Gov't
Code § 87100, et seq.).
CURRENT YEAR FISCAL IMPACT
This is an informational report and there is no fiscal impact associated with accepting or
rejecting this report.
ON GOING FISCAL IMPACT
There is no fiscal impact in future years.
ATTACHMENTS
A. Schedules 1 through 7: FY 2010-11 Financial Information for all DIFs including
Public Facilities DIF
B. FY 2010-11 Financial Information for PAD fees
C. FY2010-11 Financial Information for Trunk Sewer Capital Reserve fees
Prepared by: Karim Galeana, Senior Accountant, Finance Department
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