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Home My WebLink About2006/12/19 Item 6 Item ~ Meeting Date 12/19/2006 COUNCIL AGENDA STATEMENT ITEM TITLE: Report Regarding the Development Impact Fee (DIF), Park Acquisition and Development (PAD) Fee, and Trunk Sewer Capital Reserve Funds for the Fiscal Year Ended June 30, 2006 SUBMITTED BY: Director of Finance/Treasure~ Director of Budget and Analysis W Director of General Services )\ J4- City Engineer,)i2 . V. . /( Interim City Manager if (4/STHS Vote: Yes_NoX) REVIEWED BY: BACKGROUND: State Government Code Section 66006 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 December 7, 2006. We have also included 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, there are no unexpended fees that were on deposit for five or more years. RECOMMENDATION: That Council accept the report. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable. DISCUSSION: The City of Chula Vista collects several types of Development Impact Fees (DIFs), Parkland Acquisition and Development fees, and Trunk Sewer Capital Reserve fees, which were assessed during the fiscal year ending June 30, 2006. The major categories of facilities financed via DIFs 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. 6,/ T Item t. Meeting Date 12/19/2006 Two DIF programs were comprehensively updated during the subject fiscal year. The first such update relates to the Otay Ranch Village 11 Pedestrian Bridge DIF. This fee was increased in August 2005 from $827 to $1,808. The second comprehensive DIF program update relates to the City's Transportation Development Impact Fee (TDIF), which was presented to Council in June 2005. The fees calculated and presented to Council at that time were predicated upon the pending General Plan Update's increased land use densities. As such, the fee update could not take effect until final approval of the General Plan Update. This approval was secured in December of 2005, and the updated TDIF fees were approved the same evening. This action increased the TDIF from $9,190 to $10,050 per equivalent dwelling unit (EDU). In October of 2005, the following automatic index based annual adjustments went into effect: . Transportation DIF was increased from $8,825 to $9,190 per single-family equivalent dwelling unit (EDU). . Traffic Signal fee was increased from $25.59 to $26.65 per average daily vehicle trip to account for inflation . Public Facilities fee was increased from $5,480 to $5,489 per single family EDU . Park and Acquisition fee was increased from $8,771 to $8,962 for Areas West of 1-805 and $8,771 to $16,644 for Areas East ofT-805 Other fees addressed in this report remain at the same rate as the previous fiscal year. DEVELOPMENT IMPACT FEES TRANSPORTATION DEVELOPMENT IMP ACT FEE 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 1-805. 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 TransDIF fee credit when they apply for a building permit. A comprehensive DIF program update was presented to Council in June 2005, recommending increasing the fee from $8,825 to $10,050 per EDU. Application of the new fees was deferred, pending approval of the City's General Plan Update. Given the uncertainty of the timing of the General Plan Update, the fee was also updated using the previously approved automatic (; - ,).. T Item f.? Meeting Date 12/19/2006 inflationary increase in October of 2005. The October 2005 update increased the fee from $8,825 to $9,190 per EDU. This fee was then modified again, upon approval of the General Plan Update in December 2005, increasing the fee per EDU from $9,190 to $10,050. The fees for other land use types, as well as detailed FY06 financial information, are presented in Attachment A - Schedule I. 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 $25.59 to $26.65 per trip in October 2005. Detailed FY06 financial information is presented in Attachment A - Schedule 2. 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 FY06 financial information is presented in Attachment A - Schedule 3. 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 FY06 financial information is presented in Attachment A - Schedule 4. PUMPED SEWER DIF This fee was adopted by the City to finance the facilities necessary to the Telegraph Canyon sewer main due to out-of-basin flows from the Salt Creek Basin. The name was changed from Telegraph Canyon Sewer Pumped Flows Development Impact Fee to Pumped Sewer Development Impact Fee due to the addition of Poggi Canyon Basin Sewer Interceptor as one of the facilities financed by this fee. The fee was repealed in November 2004 under Ordinance 2990-A due to the construction of Salt Creek Trunk Sewer and there is no longer any need to pump flows out of the Salt Creek Basin. Detailed FY06 financial information is presented in Attachment A - Schedule 4. 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 1-805 along Olympic Parkway to the boundary of Eastlake. The fee was established at $400 per equivalent dwelling b-3 T Item (:, Meeting Date 12/19/2006 unit and has remained unchanged since 1997. Detailed FY06 financial information is presented in Attachment A- Schedule 4. 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 FY06 was $1,330 per EDU under Ordinance 2974-A dated August 17, 2004. Detailed FY06 financial information is presented in Attachment A - Schedule 4. OTAY RANCH VILLAGE 1,5, & 6 PEDESTRIAN BRIDGE DEVELOPMENT IMPACT FEE This fee was adopted to provide the necessary financing to construct the facilities. The fee remained unchanged in FY06 at $783 per EDU. Detailed FY06 financial information is presented in Attachment A - Schedule 5. 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 $827 to $1,808 per EDU in August of2005. Detailed FY06 financial information is presented in Attachment A - Schedule 5. 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 2005 from $5,480 to $5,489 per EDU. Detailed FY06 financial information is presented in Attachment A - Schedule 6. The components of the Public Facilities DIF with the current fees are as follows: ADMINISTRATION ($149) - Administration of the Public Facilities DIF program, overseeing of expenditures and revenues collected, preparation of updates, calculation of costs, etc. CIVIC CENTER EXPANSION ($1,223) - Expansion of the Civic Center per the Civic Center Master Plan 1989 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. (,.// Item Meeting Date 12/19/2006 b POLICE FACILITY ($809) - 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 ($717) - Relocation of the City's Public Works Center from the bay front area to the more centrally located site on Maxwell Road. LIBRARIES ($845) - 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 ($505) - Projects include the relocation of Fire Stations #3 & #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 also reflects the updated Fire Station Master Plan, which includes needs associated with the Otay Ranch development. GEOGRAPHIC INFORMATION SYSTEM ($10) - Purchase and installation of a GIS system for mapping of various base maps and creation of geo-data files to aid in planning and processing of land developments. This is a joint impetus project, with both a City and new development share. COMPUTER SYSTEM EXPANSION ($6) - Purchase and installation of a new mainframe computer and various enhancements to meet existing and future needs Citywide for additional memory, storage space, network upgrade and enhanced processing speed. TELEPHONE SYSTEM UPGRADE ($5) - Upgrade and expansion of the City's existing telephone system to accommodate growth, including installation of new conduit, wiring additional telephone lines, and a voice processing system. RECORDS MANAGEMENT SYSTEM ($9) - Updating and modernization of the existing Citywide records system to prepare for anticipated increases in transactions and volumes of records. MAJOR RECREATION FACILITIES ($1,211) - 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 6:r- T Item to Meeting Date 12/19/2006 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 both 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 AOUISITION 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 2005 from $8,771 to $8,962 Areas West ofI-805 and $8,711 to $16,644 for Areas East ofI-805. Detailed FY06 financial information is presented on Attachment B. 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 FY06 financial information is presented on Attachment C. FY06 FINANCIAL INFORMATION Attachment A, Schedules 1 through 6 reports the required financial information for all DIFs, other than the Public Facilities DIF. Attachment A, Schedule 6 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 1,2005. . The fees received during the fiscal year ended June 30, 2006. . Other miscellaneous revenues received during the fiscal year ended June 30, 2006. . The interest earned from investing the cash balances available in each fund during the fiscal year ended June 30, 2006. . The expenditures from each of the funds during the fiscal year ended June 30, 2006. . A description of each capital project with expenditures funded entirely or in part by DIF/PAD/Trunk Sewer in FY06 and the percentage of the project funded by this fee through FY06. More detailed information on any project is available in the annual Capital Improvement Project (CIP) Budget. . Information on any loans from DIF /P AD/Trunk Sewer Capital Reserve funds during FY06. . The ending balances as of June 30, 2006 for each of the DIF/PAD/Trunk Sewer Capital Reserve Funds. . The amount, description and purpose of the fee. b,~ Item & Meeting Date 12/19/2006 · An identification of an approximate date by which the construction of the public improvement will commence. The ending balances as of June 30, 2006 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 Govermnent 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. This year the City has no DIF or PAD funds containing monies that have been on deposit for five or more years. Copies of this report were sent to the 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. DECISION MAKER CONFLICTS Not Applicable. Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(l) is not applicable to this decision. FISCAL IMPACT: This is an informational report and there will be no fiscal impact by accepting or rejecting this report. ATTACHMENTS Attachment A - Schedules I through 6: FY06 Financial Information for all DIFs including Public Facilities DIF Attachment B - FY06 Financial Information for PAD fees Attachment C - FY06 Financial Information for Trunk Sewer Capital Reserve fees {;-7 <>: I- Z w :2: I U <>: l- I- <>: iL:' C I- - lI)lI) Ww Wo:: ll..::J 1-1- ~15 I1.Z ::!:W _11. 1->< ~ZW wWC :5::!: Z 011.<l: wOll) I...JW UW::J Ul> Z Ww C> ZW 00:: i=lD <l:!::! 1-10 0::0 0>- 11.ll.. lI) Z ~ I- c Q) E a. o (jj > Q) u Q) ~ :J '5 - - o t o a. a. :J I/) "!::: I/) C Q) E Q) > e a. E :s "in c:: Q) u u Q) E U:;;- Q) Q) .<::.<:: <) <) 19 I1l Q):::C)Q) == ==.~ 0 Q.) Q) = CO '!: '!: ~ I/) ~~-C~ c:c:.....L... Q) Q) c: en mm~m~ > > CO .- 0 ":; ":; .~ ~ m C'"O'"5-W(/) Q) Q) Q) E I/) ~~>-E~ ~~E~ro - - m CU"C ..Q;!..Q;!:-!Wcn C)C)~ c:J .S .S E=' Q) -g (/) (/) 0)._ l... .... L... L... 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