ADOPT A RESOLUTION REGARDING

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1 G-6 STAFF REPORT MEETING DATE: September 12, 2017 TO: FROM: City Council Regan M. Candelario, City Manager Maureen Chapman, Interim Finance Manager 922 Machin Avenue Novato, CA / FAX 415/ SUBJECT: ADOPT A RESOLUTION REGARDING DEVELOPMENT IMPACT FEE REPORTS FOR 2014/15 AND 2015/16 AND ASSOCIATED FIVE YEAR FINDINGS AND RECEIVE AND FILE THE ANNUAL DEVELOPMENT IMPACT FEE REPORT FOR FISCAL YEARS 2014/15 AND 2015/16 REQUEST Adopt a resolution adopting findings regarding the unspent balances of Development Impact Fee ( ) funds as of June 30, 2016, consistent with State law; and, receive and file the annual Development Impact Fee Report for fiscal years 2014/15 and 2015/16. DISCUSSION In accordance with the City s General Plan, the City of Novato maintains and improves a wide variety of public infrastructure, including streets and intersections; recreation and cultural facilities; storm drainage improvements; bike and transit infrastructure; open space; and many other public assets. When a private development project is approved, the project developer is typically required to build certain elements of the City s infrastructure, and to pay fees to mitigate the cost of providing certain public infrastructure that is impractical to build with each development. The fees represent the new development s proportionate share or contribution toward the cost of the public improvements that will be required to serve that development. In the mid-1990s, the City commissioned and adopted technical reports which assessed public infrastructure needs and provided a basis for the partial funding, by the establishment of the fees, required to install and construct certain portions of the facilities needed due to private development as necessary to implement the City s General Plan. The technical reports identify the public facilities and a schedule of costs for such facilities towards which the fees will be used. The fees were originally established in 1997 and updated via the adoption of additional technical reports and analysis in 1999 and The fees are based upon the assumption contained within the General Plan and the environmental impact report for the General Plan that new development in Novato will pay its proportionate share of the public facilities that are required to support such new development. The City currently collects fees broken down into the following categories: Streets and Intersections Recreation and Cultural Facilities cc17_161 1

2 Civic Facilities Transit and Bicycle Improvements Corporation Yard General Government Systems Open Space Drainage Attachments #1 and #2 to this staff report are the annual 2014/15 and 2015/16 reports. These reports identify information about the fees that is required by Government Code Section 66006, including: a description of the fees; the amount of the fees; the beginning and ending balances of each account; the amount of fees collected during the year and interest earned; an identification of projects that expended fees during the two fiscal years, and how much was expended; and an identification of when the project is scheduled to commence construction. Such a report is made available to the public each year and transmitted to the City Council. As the annual reports are prepared in arrears, the balances reported may not match current fund balances and should not be confused with any figures reported in the annual budget. In addition to the above, this staff report and the attached resolution also addresses additional findings that the City Council is required to make every five years under Government Code Section for fees that have already been collected, but remain unexpended. These findings include the following: 1. The purpose for the fee The purpose for which the fee is to be used is identified in the adopted technical reports that assessed the need for the public infrastructure improvements. More specifically, attachment #3 to this staff report lists the currently identified projects for the amount of fees currently on hand. 2. A reasonable relationship between the fee and the purpose The originally adopted technical reports contained a detailed nexus analysis, describing the need for the identified facilities and attributing the portion associated with new development to the various projects. The analysis contained in the technical reports remains valid and is incorporated by reference herein. 3. Identify all sources and amounts of funding needed to construct incomplete improvements The attachment #3 lists these amounts and anticipated funding sources. 4. The approximate date when the projects will be fully funded The attachment #3 lists estimated completion dates for the projects. RECOMMENDATION Adopt the resolution and receive and file the report. ATTACHMENTS /15 Annual Report on Development Impact Fees /16 Annual Report on Development Impact Fees 3. Resolution - Exhibit A: Existing Balances Detail and Status 2

3 1. Streets & Intersections ATTACHMENT 1 G-6 1. This fee funds construction and improvements of streets and intersections, to offer a safe and efficient network of travel throughout the City. Fee Schedules, Traffic Impact: Single Family $6, per DU Multi Family 2, per DU Commercial 9, per 1,000 sf GFA Industrial 4, per 1,000 sf GFA Office 8, per 1,000 sf GFA Hotel/Motel 2, per room Beginning Balance, July 1, 2014 $7,949, Ending Balance, June 30, 2015 $8,064, Fees collected 216, Interest earned 37, Total revenues 254, Administrative fee to General Fund 2, expenditures: : Novato Blvd. improvements between Diablo and Grant 137, FY 99/ % Total expenditures 139, ,

4 2. Recreation & Cultural This fee funds construction and improvements to recreation and cultural facilities throughout the City to benefit residents. Single Family $4, per DU Multi Family 4, per DU Beginning Balance, July 1, 2014 $2,251, Ending Balance, June 30, 2015 $2,384, Fees collected 118, Interest earned 15, Total revenues 133, Administrative fee to General Fund 1, expenditures: : Hill Recreation Area Site Planning 25, : Hill Gymnasium Deferred Maintenance 16, FY 14/ : IVC Lighting Replacement 47, FY 14/15 Total expenditures 1, ,

5 3. Civic Facilities This fee funds construction and development of civic facilities for the use and benefit of residents. Single Family $ per DU Multi Family per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2014 $360, Ending Balance, June 30, 2015 $369, Fees collected 22, Interest earned 1, Total revenues 24, Administrative fee to General Fund expenditures: : Civic Center Master Plan 1, : Custodial Staff Relocation 5, FY 13/ % : Downtown Depot Parking Lot Phase I 8, Total expenditures 15, ,

6 4. Transit and Bicycle Facilities This fee funds construction and improvements to transit and bicycle facilities. Single Family $ per DU Multi Family per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2014 $69.54 Ending Balance, June 30, 2015 $ Fees collected 7, Interest earned 2.17 Total revenues 7, Administrative fee to General Fund expenditures: : Grant Avenue bridge rehab 7, FY 07/ % Total expenditures 7, ,

7 5. Corporation Yard This fee funds construction and improvements to the corporation yard, which houses valuable and necessary equipment used in maintaining vital transportation infrastructure throughout the Fee Schedules, Traffic Impact: Single Family $ per DU Multi Family per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2014 ($501,479.67) Ending Balance, June 30, 2015 ($499,167.73) Fees collected 4, Interest earned (2,336.97) Total revenues 2, Administrative fee to General Fund Total expenditures - - 7

8 6. General Government Systems This fee funds computerization and technology improvements to the City's operations, to support efficient and effective management of municipal operations. Single Family $ per DU Multi Family per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2014 $186, Ending Balance, June 30, 2015 $120, Fees collected 9, Interest earned Total revenues 10, Administrative fee to General Fund 1, General Fund GIS Support 75, expenditures: : Technology Planning & Efficiencies FY 10/ % Total expenditures 76,

9 7. Open Space This fee funds improvements and preservation of open space, which provides benefits to visitors, City residents and businesses, and enhancement of property values. Single Family $1, per DU Multi Family 1, per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2014 $708, Ending Balance, June 30, 2015 $739, Fees collected 27, Interest earned 3, Total revenues 31, Administrative fee to General Fund - - Total expenditures - 9

10 8. Drainage This fee funds improvements to drainage facilities, providing a benefit to and protection of residential and business properties located within the City. Single Family $2, per DU Multi Family per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2014 $637, Ending Balance, June 30, 2015 $663, Fees collected 51, Interest earned 3, Total revenues 55, Administrative fee to General Fund expenditures: : Olive Avenue Improvements, Phase III (8,200.00) FY 07/ % : Storm Drain Master Plan 33, FY 98/ % : Rush Creek improvements 3, FY 00/ % Total expenditures 29, ,

11 1. Streets & Intersections ATTACHMENT 2 G-6 2. This fee funds construction and improvements of streets and intersections, to offer a safe and efficient network of travel throughout the City. Fee Schedules, Traffic Impact: Single Family $6, per DU Multi Family 2, per DU Commercial 9, per 1,000 sf GFA Industrial 4, per 1,000 sf GFA Office 8, per 1,000 sf GFA Hotel/Motel 2, per room Beginning Balance, July 1, 2015 $8,064, Ending Balance, June 30, 2016 $8,291, Fees collected 269, Interest earned 53, Total revenues 323, Administrative fee to General Fund 1, expenditures: : Novato Blvd. improvements between Diablo and Grant 92, FY 99/ % : Redwood & San Marin improvements 1, FY 05/ % : North Redwood Boulevard corridor study FY 16/ % Total expenditures 96, , G:\Funds\ Reports\ Report Streets & Intersec 11

12 2. Recreation & Cultural This fee funds construction and improvements to recreation and cultural facilities throughout the City to benefit residents. Single Family $4, per DU Multi Family 4, per DU Beginning Balance, July 1, 2015 $2,294, Ending Balance, June 30, 2016 $2,402, Fees collected 91, Interest earned 17, Total revenues 109, Administrative fee to General Fund 1, expenditures: : Hill Recreation Area site planning 37, FY 00/ % : Synthetic turf fields FY 13/ % : Hill Gymnasium deferred maintenance 16, FY 14/ % : IVC lighting replacement 15, FY 14/ % Total expenditures 1, , G:\Funds\ Reports\ Report Rec & Cult 12

13 3. Civic Facilities This fee funds construction and development of civic facilities for the use and benefit of residents. Single Family $ per DU Multi Family per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2015 $369, Ending Balance, June 30, 2016 $393, Fees collected 24, Interest earned 2, Total revenues 26, Administrative fee to General Fund expenditures: : Downtown Depot Parking Lot Phase I 3, FY 13/ % Total expenditures 3, , G:\Funds\ Reports\ Report Civic 13

14 4. Transit and Bicycle Facilities This fee funds construction and improvements to transit and bicycle facilities. Single Family $ per DU Multi Family per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2015 $ Ending Balance, June 30, 2016 $11, Fees collected 11, Interest earned Total revenues 11, Administrative fee to General Fund - Total expenditures - G:\Funds\ Reports\ Report Transit Bike 14

15 5. Corporation Yard This fee funds construction and improvements to the corporation yard, which houses valuable and necessary equipment used in maintaining vital transportation infrastructure Fee Schedules, Traffic Impact: Single Family $ per DU Multi Family per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2015 ($499,167.73) Ending Balance, June 30, 2016 ($496,557.96) Fees collected 5, Interest earned (3,225.82) Total revenues 2, Administrative fee to General Fund Total expenditures - - G:\Funds\ Reports\ Report Corp Yard 15

16 6. General Government Systems This fee funds computerization and technology improvements to the City's operations, to support efficient and effective management of municipal operations. Single Family $ per DU Multi Family per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2015 $120, Ending Balance, June 30, 2016 $56, Fees collected 10, Interest earned Total revenues 10, Administrative fee to General Fund - General Fund GIS Support 75, Total expenditures 75, G:\Funds\ Reports\ Report Gen Govt Systems 16

17 7. Open Space This fee funds improvements and preservation of open space, which provides benefits to visitors, City residents and businesses, and enhancement of property values. Single Family $1, per DU Multi Family 1, per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2015 $739, Ending Balance, June 30, 2016 $769, Fees collected 24, Interest earned 4, Total revenues 29, Administrative fee to General Fund - - Total expenditures - G:\Funds\ Reports\ Report Open Space 17

18 8. Drainage This fee funds improvements to drainage facilities, providing a benefit to and protection of residential and business properties located within the City. Single Family $2, per DU Multi Family per DU Commercial per 1,000 sf GFA Industrial per 1,000 sf GFA Office per 1,000 sf GFA Hotel/Motel per room Beginning Balance, July 1, 2015 $663, Ending Balance, June 30, 2016 $678, Fees collected 39, Interest earned 4, Total revenues 44, Administrative fee to General Fund expenditures: : Storm Drain Master Plan 26, FY 98/ % : Rush Creek improvements FY 00/ % : Storm Drain Improvements Group 1 1, FY 14/ % Total expenditures 28, , G:\Funds\ Reports\ Report Drainage 18

19 ATTACHMENT 3 CITY OF NOVATO CITY COUNCIL G-6 3. RESOLUTION NO. RESOLUTION OF THE NOVATO CITY COUNCIL ADOPTING FINDINGS REGARDING THE UNSPENT BALANCES OF AND USE OF DEVELOPMENT IMPACT FEE FUNDS CONSISTENT WITH STATE LAW WHEREAS, in accordance with the City s General Plan, the City of Novato maintains and improves a wide variety of public infrastructure, including streets and intersections; recreation and cultural facilities; storm drainage improvements; bike and transit infrastructure; open space; and many other public assets; and WHEREAS, when a private development project is approved, the project developer is typically required to build certain elements of the City s infrastructure, and to pay development impact fees ( fees ) for that development s proportionate share of future public infrastructure that is impractical to build with each development; and WHEREAS, in the mid-1990s, the City commissioned and adopted technical reports which assessed public infrastructure needs and provided a basis for the partial funding, by the establishment of the fees, required to install and construct certain portions of the facilities needed due to private development as necessary to implement the City s general plan; and WHEREAS, the technical reports identify the public facilities and a schedule of costs for such facilities towards which the fees will be used; and WHEREAS, the fees were adopted in 1997 and updated with additional technical reports and analysis in 1999 and 2002; and WHEREAS, the capital improvement program budget adopted by the City Council each fiscal year identifies projects that are to be funded with fees; and WHEREAS, each year the City Council reviews and accepts the annual report on development impact fees, as required by State law; and WHEREAS, the fee updates, CIP Budget appropriations, the annual report on development fees and the information and analysis provided in the staff report in support of this resolution, and Attachment #3 thereto, describe the purpose of each fee, consider the sources of funding and amounts necessary to complete financing of projects and address the reasonable relationship between the fee and the need for the identified infrastructure improvements as related to new development and therefore provide the basis for findings consistent with the requirements of the California Government Code Section 66001; and WHEREAS, the City Council now seeks to document and formally adopt these findings consistent with state law. res

20 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Novato based on the foregoing, the reports, materials, and testimony presented hereby adopt the following findings regarding the unspent balances of and use of development impact fees: 1. The purpose of each of the development impact fees are as originally identified in the technical reports that assessed the need for the public infrastructure improvements, and more specifically will be used for the projects described in Exhibit A, attached hereto and incorporated herein by reference as well as the CIP Budget appropriations made annually by Council. 2. The unspent balances of each fee category, the anticipated funding sources and estimated amounts of funding necessary to complete financing for the identified public improvement projects, as well as sets forth anticipated project construction dates are set forth in Exhibit A, attached hereto and incorporated herein by reference. Future funds will be appropriated and deposited into project accounts as part of the annual CIP Budget process. 3. The nexus analysis contained in the original technical reports and in the 1999 and 2002 update reports for the development impact fees, along with the continuing pursuit of identified public improvement projects, demonstrate the need for public infrastructure attributable to the impacts of new development and support the need for continued contribution by new development through the collection of the development impact fees. * * * * * * I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City Council of the City of Novato, Marin County, California, at a meeting hereof, held on the 12 th day of September, 2017, by the following vote, to wit: AYES: NOES: ABSTAIN: ABSENT: Councilmembers Councilmembers Councilmembers Councilmembers City Clerk of the City of Novato Approved as to form: City Attorney of the City of Novato res

21 Existing Balances - Detail and Status As of 06/30/2016 G-6 4. Streets and Intersections (1% City funding match required) # Name Completion Date Total Cost Prior Funding Prior to FY 16/17 ed Future in CIP Budget Anticipated Other Funding Sources Novato Blvd. Improvements/ Diablo to Grant 2019/20 13,915,842 1,232,382 3,709,528 County Measure A Sales Tax Redwood / 101 South Ramps at San Marin 2019/20 6,032,203 26,000 2,464,734 Grants; Traffic In Lieu Fees Redwood Improvements N of San Marin Dr. 2019/20 825, ,001 None San Marin at Simmons Intersection Improvements 2019/20 538, , ,973 None Rule 20A Utility Undergrd - Novato Blvd; Diablo to Terrace 2018/19 705,000 7, ,000 Measure A; Utility Reimbursement North Redwood Corridor Streetscape Study 2017/18 200,000 30,000 60,000 Grants Total 22,716,452 1,479,315 7,524,236 EXHIBIT A Fund Balance - Street and Intersections 8,291,082 Recreation and Cultural (86% City funding match required) # Name Completion Date Cost Prior Funding Prior to FY 16/17 ed Future in CIP Budget Anticipated Other Funding Sources Hill Recreation Area Site Planning 2018/19 9,348,422 56, ,320 Quimby Fees; Measure F; Measure A Synthetic Turf Fields Research & Installation 2017/18 1,137, ,800 - Measure F Hill Recreation Area Phase 1 Construction, Parking, and Bocce 2017/18 505, ,689 - Measure F N/A Future Recreation and Cultural Facility s 2020/21 10,309,186 1,443,286 - Measure F Fund Balance - Recreation and Cultural 2,402,995 C:\Users\mchapman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\2HH8R3MK\ Funding Status Matrix-June 16 21

22 Transit and Bicycle (79% City funding match required) # Name Completion Date Cost Prior Funding Prior to FY 16/17 ed Future in CIP Budget Anticipated Other Funding Sources Grant Ave Bridge Rehabilitation 2018/19 2,338,021 64,908 - Gas tax; Grants Fund Balance - Transit and Bicycle 11,803 Drainage (79% City funding match required) # Name Completion Date Cost Prior Funding Prior to FY 16/17 ed Future in CIP Budget Anticipated Other Funding Sources Olive Ave Improvements, Phase III 2017/18 752, ,502 - Measure A; Gas Tax; Clean Stormwater; Restricted Revenue Storm Drain Master Plan 2017/18 334,000 67,200 - Clean Storm Water Funds Railroad Ave Ditch Drainage 2017/18 443,534 89,594 - Gas Tax Storm Drain Improvement Annual 2017/18 282,090 37,970 19,012 Infrastructure Long Term Maint. Funds Fund Balance - Drainage 678,545 Civic Facilities (78% City funding match required) # Name Completion Date Cost Prior Funding Prior to FY 16/17 ed Future in CIP Budget Anticipated Other Funding Sources Civic Center Master Planning 2017/18 50,000 12,200 - Civic Center Fund Downtown SMART Station Phase /18 500,000 27,000 - Parking Improvement Fund N/A Future Civic Center s / Renovation 2020/21 1,475, ,181 - Civic Center Fund, Long Term Maintenance Fund Fund Balance - Civic Facilities 393,381 C:\Users\mchapman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\2HH8R3MK\ Funding Status Matrix-June 16 22

23 Open Space (88% City funding match required) # Name Completion Date Cost Prior Funding Prior to FY 16/17 ed Future in CIP Budget Anticipated Other Funding Sources N/A Acquisition of 107 Acres of Open Space 2018/19 6,412, ,523 - General Fund; Measure F Fund Balance - Open Space 769,523 Corporation Yard (36% City funding match required) # Name Completion Date Cost Prior Funding Prior to FY 16/17 ed Future in CIP Budget Anticipated Other Funding Sources Corporation Yard Improvements 2008/09 2,002, ,797 - N/A Fund Balance - Corporation Yard (496,558) General Government Systems (79% City funding match required) # Name Completion Date Cost Prior Funding Prior to FY 16/17 ed Future in CIP Budget Anticipated Other Funding Sources N/A General Fund GIS Support 2016/17 2,142, ,000 75,000 General Fund Fund Balance - General Government Systems 56,455 C:\Users\mchapman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\2HH8R3MK\ Funding Status Matrix-June 16 23

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