TO: FROM: Honorable Mayor and City Council Attention: Laura C. Kuhn, City Manager Jeremy Craig, Assistant City Manager Agenda Item No. 6A December 8, 2015 SUBJECT: RESOLUTION EXTENDING THE SUNSET DATE FOR THE SINGLE-FAMILY FEE DEFERRAL PROGRAM TO DECEMBER 31, 2016; AND DISCUSSION: RESOLUTION EXTENDING THE SUNSET DATE FOR NON-RESIDENTIAL AND MULTI-FAMILY FEE DEFERRAL PROGRAMS TO DECEMBER 31, 2016 The City of Vacaville currently charges Development Impact Fees at the time a building permit is issued for the impact that new development has on Fire, Police, Water, Sewer, Storm Drainage, Traffic, Parks and Open Space services. The general purpose of Development Impact Fees, which were established in accordance with the Mitigation Fee Act (AB 1600), is to provide a means to finance the public improvements required to meet the objectives of the General Plan, and to assure an equitable distribution of costs between existing and new development in Vacaville. In an attempt to promote economic development and to help the City s own local construction economy, on December 14, 2010, the City Council approved the deferral of single-family residence building permit fee payments until the final building inspection for the project or 6 months from when the building permit was issued, whichever occurs first. The program sunset date was December 31, 2012, however, the City Council extended the program for each year by resolution. The deferral of the building permit fee payment shortens the interval between paying the fees and selling the completed single-family home, the occupancy of a multi-family dwelling unit, or the occupancy of a non-residential development. This in turn lowers the cost to the developer to finance the project. The deferral does not reduce the Development Impact Fees paid to the City; it simply changes when that revenue is collected. The Single-Family Deferral Program requirements remain the same as previously approved by the City Council, other than the recommended new sunset date of December 31, 2016 (see Attachment 1). The Fee Deferral Repayment Agreement requires the payment of the deferred fees prior to the scheduling of the final building inspection for the project, or 6 months from the date of issuance of the building permit, whichever occurs first. The Non-Residential and Multi-Family Deferral Program requirements follow a slightly different format as the residential program. Since temporary occupancies are not uncommon prior to final building inspections, the payment of deferred fees are due at the time of scheduling the temporary electrical inspection (PG&E meter) for the project, or 6 months from the date of issuance of the building permit, whichever occurs first. The Non-Residential Fee Deferral Program only applies to building permits for new construction, and does not apply to tenant improvements in existing structures, unless they are greater than 10,000 square feet or the project is a change in use. The Non-Residential and Multi-Family Deferral Programs are attached (Attachments 2 and 3).
Security is not required on any of the deferral programs, nor will interest be charged on the balance during the deferral period. Failure to pay the deferred amount within 6 months of the anniversary date of the issuance of the Building Permit will result in interest being charged on the outstanding balance of the deferred amount at the rate of 1.5% per month. FISCAL IMPACT: The deferral does not reduce the Development Impact Fees paid to the City, only the timing of when they are collected, thus, only the investment earnings are lost during the time of the deferral. There is no impact to the City s General Fund as a result of this action. RECOMMENDATION: By simple motion, adopt the subject resolutions. ATTACHMENTS: Resolutions Action Items Attachment 1: Deferral of Collection of Development Impact Fees for Single-Family Residences, Sunset Date December 31, 2016 Attachment 2: Deferral of Collection of Development Impact Fees for Non-Residential Developments, Sunset Date December 31, 2016 Attachment 3: Deferral of Collection of Development Impact Fees for Multi-Family Residential Developments, Sunset Date December 31, 2016
RESOLUTION NO. 2015- RESOLUTION EXTENDING THE SUNSET DATE FOR THE SINGLE-FAMILY FEE DEFERRAL PROGRAM TO DECEMBER 31, 2016 WHEREAS, Government Code Section 66000 et seq., known as the Mitigation Fee Act (AB 1600), authorizes local agencies to collect fees to mitigate impacts of new development for infrastructure improvements; and WHEREAS, the City Council of the City of Vacaville desires to encourage the construction of new development projects in the City and to promote economic development during the slowdown in the current single-family residential market; and WHEREAS, in an attempt to promote economic development, and to help the City's local construction economy, on December 14, 2010, the City Council approved the Single-Family Fee Deferral Program; and WHEREAS, in order to continue to promote single-family development, the sunset date for the program was extended on May 8, 2012, an additional year to December 31, 2013 and again on August 26, 2014 through December 31, 2014; and again on December 9, 2014 through December 31, 2015; and WHEREAS, in order to continue encouragement of single-family development, the sunset date for the program should be extended an additional year to December 31, 2016. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Vacaville does hereby authorize the extension of the sunset date for the Single-Family Fee Deferral Program to December 31, 2016. I HEREBY CERTIFY that the foregoing resolution was introduced and passed at a regular meeting of the City Council of the City of Vacaville, held on the 8th day of December 2015, by the following vote: AYES: NOES: ABSENT: ATTEST: Michelle A. Thornbrugh, City Clerk
RESOLUTION NO. 2015- RESOLUTION EXTENDING THE SUNSET DATE FOR THE NON-RESIDENTIAL AND MULTI-FAMILY FEE DEFERRAL PROGRAMS TO DECEMBER 31, 2016 WHEREAS, Government Code Section 66000 et seq., known as the Mitigation Fee Act (AB 1600), authorizes local agencies to collect fees to mitigate impacts of new development for infrastructure improvements; and WHEREAS, the City Council of the City of Vacaville desires to encourage the construction of new development projects in the City and to promote economic development during the slowdown in the non-residential and multi-family markets; and WHEREAS, to encourage and promote development, the City Council deferred the collection of development impact fees for non-residential and multi-family developments with a sunset of December 31, 2013, again for an additional year through December 31, 2014 and again for an additional year through December 31, 2015; and WHEREAS, the City Council desires to continue to encourage and promote development, and extend the deferral of the collection of development impact fees for non-residential and multifamily developments with a new sunset of December 31, 2016; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Vacaville does hereby authorize the extension of the Non-Residential and Multi-family Fee Deferral Programs with a new sunset date of December 31, 2016. I HEREBY CERTIFY that the foregoing resolution was introduced and passed at a regular meeting of the City Council of the City of Vacaville, held on the 8th day of December 2015, by the following vote: AYES: NOES: ABSENT: ATTEST: Michelle A. Thornbrugh, City Clerk
DEFERRAL OF COLLECTION OF DEVELOPMENT IMPACT FEES FOR SINGLE-FAMILY RESIDENCES SUNSET DATE - DECEMBER 31, 2016 DESCRIPTION OF PROGRAM In December of 2010, the Vacaville City Council enacted a program that permits builders of singlefamily residences to defer the payment to the City of Development Impact Fees from the time of building permit issuance to the earlier of the scheduling the final building inspection for the project or 6 months from when the building permit was issued. For the deferral, security is not required nor will interest be charged on the balance during the deferred period. Failure to pay the deferred amount within 6 months of the anniversary of the issuance of the Building Permit will result in interest being charged on the outstanding balance of the deferred amount at the rate of 1.5% per month. APPLICATION FOR DEFERRAL OF DEVELOPMENT IMPACT FEES Fee Schedule Issued by Building Department for project must be attached to application Application Fee of $50 (Separate Check) Project Identification Job Address: APN LOT # Owner Name Telephone # Owner Address/City/ZIP Contractor Name Telephone # Contractor Address/City/Zip Development Impact Fees Deferred: Check each requested: Water Connection Sewer Connection Park & Rec. Greenbelt General Facilities Police Fire Dev. Traffic Impact Drainage Community Benefit Water Annexation Applicants Signature Date Print Name
FEE DEFERRAL REPAYMENT AGREEMENT Must be completed before Building Permit will be issued I on behalf of have print name owner/contractor applicant requested that the payment of the Development Impact Fees checked on the reverse of this document, in the amount of $ be deferred from total $ deferred payment at the time of the issuance of Building Permit for this property for a single-family residence located at. The applicant understands and agrees to pay all of the non-deferred fees in the amount of $, which are associated with the issuance of a Building Permit at the time when the Permit is issued. By entering into this Agreement, the applicant understands and agrees to pay in full the deferred fees of $ either prior to the scheduling of the final building inspection for the project or six (6) months from the date of issuance of the Building Permit. By entering into this Agreement the applicant understands and agrees that should the deferred payment not be paid in full by the due date described above, that in addition to withholding scheduling the final building inspection, an interest rate of 1.5% per month shall apply to the outstanding balance. The applicant also understands and agrees that the structure may not be occupied or title transferred until the entire balance of the deferred payment, including interest, if any applies, has been paid. The City of Vacaville retains the right to invoke all legal recourse to recover delinquencies including the outstanding balance, interest and costs associated with the recovery. AUTHORIZED SIGNATURE DATE Print Name For Office Use Only Application # RECEIVED BY: Project # DATE:
DEFERRAL OF COLLECTION OF DEVELOPMENT IMPACT FEES FOR NON-RESIDENTIAL DEVELOPMENTS SUNSET DATE - DECEMBER 31, 2016 DESCRIPTION OF PROGRAM In May of 2012, the Vacaville City Council enacted a program that permits builders of nonresidential developments to defer payment of City of Development Impact Fees from the time of building permit issuance to the earlier of the temporary service electrical inspection by the Community Development Building Division, or six (6) months from when the building permit was issued. For the deferral, security is not required nor will interest be charged on the balance during the deferred period. Failure to pay the deferred amount within 6 months of the anniversary of the issuance of the Building Permit will result in interest being charged on the outstanding balance of the deferred amount at the rate of 1.5% per month. APPLICATION FOR DEFERRAL OF DEVELOPMENT IMPACT FEES Fee Schedule Issued by Building Department for project must be attached to application Application Fee of $50 (Separate Check) Project Identification Job Address: APN LOT # Owner Name Telephone # Owner Address/City/ZIP Contractor Name Telephone # Contractor Address/City/Zip Development Impact Fees Deferred: Check each requested: Water Connection Sewer Connection Park & Rec. Greenbelt General Facilities Police Fire Dev. Traffic Impact Drainage Community Benefit Water Annexation Applicants Signature Date Print Name
FEE DEFERRAL REPAYMENT AGREEMENT Must be completed before Building Permit will be issued I on behalf of have print name owner/contractor applicant requested that the payment of the Development Impact Fees checked on the reverse of this document, in the amount of $ be deferred from total $ deferred payment at the time of the issuance of Building Permit for this property for a single-family residence located at. The applicant understands and agrees to pay all of the non-deferred fees in the amount of $, which are associated with the issuance of a Building Permit at the time when the Permit is issued. By entering into this Agreement, the applicant understands and agrees to pay in full the deferred fees of $ either prior to the scheduling of the final building inspection for the project or six (6) months from the date of issuance of the Building Permit. By entering into this Agreement the applicant understands and agrees that should the deferred payment not be paid in full by the due date described above, that in addition to withholding scheduling the final building inspection, an interest rate of 1.5% per month shall apply to the outstanding balance. The applicant also understands and agrees that the structure may not be occupied or title transferred until the entire balance of the deferred payment, including interest, if any applies, has been paid. The City of Vacaville retains the right to invoke all legal recourse to recover delinquencies including the outstanding balance, interest and costs associated with the recovery. AUTHORIZED SIGNATURE DATE Print Name For Office Use Only Application # RECEIVED BY: Project # DATE:
DEFERRAL OF COLLECTION OF DEVELOPMENT IMPACT FEES FOR MULTI-FAMILY RESIDENTIAL DEVELOPMENTS SUNSET DATE - DECEMBER 31, 2016 DESCRIPTION OF PROGRAM In May of 2012, the Vacaville City Council enacted a program that permits builders of multifamily residential developments to defer payment of City of Development Impact Fees from the time of building permit issuance to the earlier of the temporary service electrical inspection by the Community Development Building Division, or six (6) months from when the building permit was issued. For the deferral, security is not required nor will interest be charged on the balance during the deferred period. Failure to pay the deferred amount within 6 months of the anniversary of the issuance of the Building Permit will result in interest being charged on the outstanding balance of the deferred amount at the rate of 1.5% per month. APPLICATION FOR DEFERRAL OF DEVELOPMENT IMPACT FEES Fee Schedule Issued by Building Department for project must be attached to application Application Fee of $50 (Separate Check) Project Identification Job Address: APN LOT # Owner Name Telephone # Owner Address/City/ZIP Contractor Name Telephone # Contractor Address/City/Zip Development Impact Fees Deferred: Check each requested: Water Connection Sewer Connection Park & Rec. Greenbelt General Facilities Police Fire Dev. Traffic Impact Drainage Community Benefit Water Annexation Applicants Signature Date Print Name
FEE DEFERRAL REPAYMENT AGREEMENT Must be completed before Building Permit will be issued I on behalf of have print name owner/contractor applicant requested that the payment of the Development Impact Fees checked on the reverse of this document, in the amount of $ be deferred from total $ deferred payment at the time of the issuance of Building Permit for this property for a single-family residence located at. The applicant understands and agrees to pay all of the non-deferred fees in the amount of $, which are associated with the issuance of a Building Permit at the time when the Permit is issued. By entering into this Agreement, the applicant understands and agrees to pay in full the deferred fees of $ either prior to the scheduling of the final building inspection for the project or six (6) months from the date of issuance of the Building Permit. By entering into this Agreement the applicant understands and agrees that should the deferred payment not be paid in full by the due date described above, that in addition to withholding scheduling the final building inspection, an interest rate of 1.5% per month shall apply to the outstanding balance. The applicant also understands and agrees that the structure may not be occupied or title transferred until the entire balance of the deferred payment, including interest, if any applies, has been paid. The City of Vacaville retains the right to invoke all legal recourse to recover delinquencies including the outstanding balance, interest and costs associated with the recovery. AUTHORIZED SIGNATURE DATE Print Name For Office Use Only Application # RECEIVED BY: Project # DATE: