Annual Development Impact Fee Report for FY ending 06-30-2019MEETING DATE: April 15, 2020
AGENDA REPORT
City Council
PREPARED BY: Tom Gallup, Finance Manager DEPT. DIRECTOR: Teresa S.
Monica Attili, Financial Analyst McBroome
DEPARTMENT: Finance
SUBJECT:
CITY MANAGER: Karen P. Brust
Annual Report Concerning the Mitigation Fee Actfor Fiscal Year 2018 -19.
RECOMMENDED ACTION:
Review and file the Annual Mitigation Fee Report for Fiscal Year Ended June 30, 2019.
STRATEGIC PLAN:
This agenda item applies to the Organizational Efficiency and Effectiveness focus area by maintaining
the City's financial health through efficient allocations of resources.
FISCAL CONSIDERATIONS:
There is no direct fiscal impact related to the recommended actions in this report.
BACKGROUND:
GovernmentCode Section 66006 provides that a local agencythat requires the paymentof a development
fee prepare and make public an annual report as to the status of those fees within 180 days after the last
day of the fiscal year. The City met this requirement and a public notice was published in the Coast News
on December 13th. In addition, the City Council must review the report at the next regularly scheduled
public meeting of the Council that falls at least (15) days after the information is made available to the
public as required by the California Mitigation Fee Act.
The City imposes fees on new development, as authorized under the 1996 Mitigation Fee Act, California
Government Code § §66000 et seq., (the "Act "). The Act governs the establishment and administration
of development impact fees paid by new development projects for public facilities needed to serve new
developments. It also requires disclosure of certain financial information such as type of fee, amount of
the fee, beginning and ending fund balance, fees collected, interest earned and the public improvements
on which the fees were expended.
There are two specific reporting requirements covered under this Act: 1) a periodic (five -year) report to
make findings with respect to all unexpended mitigation fees and 2) an annual report to make available
certain information pertaining to mitigation fees. The last five year report for the period July 1, 2013
2020 -04 -15 Item #08J 1 of 5
through June 30, 2018 was accepted by Council on November 14, 2018. The next five year report will
be due by December 30, 2023. The annual report is included herein.
The City collects fees for Park Development, Parkland Acquisition, Traffic Mitigation, Regional Arterial
System through the Regional Transportation Congestion Improvement Program (RTCIP, which is
managed by SANDAG), Open Space Acquisition, Recreation Trails, Community Facilities, and Fire
Mitigation and Flood Control. All fees collected and interest earned thereon are deposited in separate
special revenue funds and are restricted to expenditures in accordance with the purpose of the fee and
the requirements of the Act.
ANALYSIS:
The information provided for City Council review is in the order listed in the California Government Code
§ §66006 as follows:
• Attachment 1 of the Annual Report of Development Impact /Mitigation Fees provides a
brief description of the type of the fee in the account or fund.
• Attachment 2 of the Annual Report of Development Impact /Mitigation Fees lists the
beginning and ending balance of the fund, the amount of the fees collected and interest
earned forthe fiscal year ending June 30, 2019.
• Attachment 3 of the Annual Report of Development Impact /Mitigation Fees lists public
improvements on which fees were expended, the amount of the expenditure including the
total percentage of the cost of the public improvement that was funded with fees for the fiscal
year ended June 30, 2019.
All of the information utilized to prepare the annual report required by California Government Code
Sections 66001 and 66006, is contained in the public documentation available through the City Clerk's
office. Documents include the Comprehensive Annual Financial Reports, the Six -Year Financial and
Capital Improvement Plans, and the 2000, 2005, 2015 and 2017 Impact Fee Studies.
ENVIRONMENTAL CONSIDERATIONS:
The action being considered by the City Council is exempt from the California Environmental Quality Act
(CEQA) because it is not a "project" under Section 15378(b)(5) of CEQA Guidelines. The action involves
an organizational or administrative activity of government that will not result in the direct or indirect
physical change in the environment. This item does not relate to the City's Climate Action Plan.
ATTACHMENTS:
1. Description of the Type of Fee in the Account or Fund
2. Annual Report of Development Impact/Mitigation Fees for Fiscal Year Ended June 30, 2019
3. Identification of Public Improvement Projects forwhich Mitigation Fees were Expended for
Fiscal Year Ended June 30, 2019
2020 -04 -15 Item #08J 2 of 5
ANNUAL REPORT OF DEVELOPMENT IMPACT /MITIGATION FEES
DESCRIPTION OF THE TYPE OF FEES IN THE ACCOUNT OR FUND
City of Encinitas, California
Fiscal Year Ended June 30, 2019
California Gov't Code Section 66006 (b)(1), requires annual reporting of the following information related to impact/mitigation
fees assessed and collected:
Description of the type of fee in the account or fund
Funds 231 -232 Park Development Fee and Parkland Acquisition Fees are established in lieu of land dedication for park
purposes or in addition to land dedication. Fees are required for residential permits issued before July 1,
2008, and for new moderate, low, very low and extremely low income residential units as defined in Health
and Safety Code Sections 50079.5, 50093, 50105, 50106 and by reference in Government Code Section
65585.1. Fees are required for residential subdivisions of 50 lots or less.
Funds 233 -234 Traffic Mitigation Fees and RTCIP Fees are used to pay for traffic facilities needed to serve the development.
Funds will be used to construct main thoroughfares as identified in the Circulation Element Road Map. Fees
are required for residential subdivisions of 50 lots or less.
Funds 235 Open Space Acquisition Fees are to mitigate the impacts caused by new deveopment to finance necessary
public improvements and to pay for new developments share of the construction of these improvements.
Fees are assessed per unit of development by development type for residential developments. These fees
are calculated using the per capita costs and the population per dwelling unit data.
Funds 236 Trail Development Fees are to mitigate the impacts caused by new deveopment to finance necessary public
recreational improvements and to pay for new developments share of the construction of these
improvements. Fees are assessed per unit of development by development type for residential
developments. These fees are calculated using the per capita costs and the population per dwelling unit
data.
Fund 237 Community Facilities Fees are used to mitigate the cost of improvements to meet the recreational space and
facilities standards of new developments. Fees are assessed per unit of development by development type
for residential development. These fees are calculated using the per capita costs and the population per
dwelling unit data.
Fund 238 Fire Mitigation Fees are used to fund the cost of fire department facilities serving new developments. The
fees are charged at a variable rate per unit, room or square foot.
Fund 239 Flood Control Fees are used to provide for flood control facilities needed to serve the development. Funds
will be used to construct planned drainage facilities for the removal of surface and storm waters as shown
on the San Diego County Flood Plan of 1977. The fee is calculated at $ 0.21 /square foot of new impervious
surfaces.
2020 -04 -15 Item #08J &t&ir&nt 1
NNUAL REPORT OF DEVELOPMENT IMPACT /MITIGATION FEES
FOR FISCAL YEAR ENDED JUNE 30, 2019
City of Encinitas, California
mpact /mitigation fees assessed and collected:
232
Fund 233
Fund 234*
Fund 235
Fund 236
Fund 237
Fund 238
Fund 239
TOTALS
ind
Traffic
RTCIP( Regional
Open Space
Recreational
Community
Fire
Flood
ition
Mitigation
Arterial System)
Acquisition
Trails
Facilities
Mitigation
Control
,792.00 $
2,483.48
$ 2,483.48
$ 438.00
$ 168.00
$ 571.00
$Range $482-$675
$ 0.21 /sq. ft.
paved surface
161,086 $
2,765,615
$ 1,375,911
$ 754,268
$ 59,831
$ -
$ -
$ 466,868 $
9,455,286
176,623
496,456
151,651
32,382
12,494
43,463
76,620
104,915
1,692,942
(207, 813)
(207, 813)
95,206
94,138
45,588
33,269
2,198
-
-
15,050
332,610
171,829
382,781
197,239
65,651
14,692
43,463
76,620
119,966
1,817,739
195,574)
(81,589)
(109,909)
-
-
-
-
(103,102)
(490,174)
500,000 a
500,000
-
-
-
-
-
(43,463) b
(76,620) c
-
(120,083)
137,341
3,066,807
1,463,241
1,319,919
74,523
483,732
11,162,769
(500, 000)
(500, 000)
(500, 000)
(500, 000)
137,341
3,066,807
1,463,241
319,919
74,523
483,732
10,162,769
i09,775
2,446,198
866,091
121,280
64,335
151,421
7,098,554
;27,566 $
620,609
$ 597,150
$ 198,639
$ 10,188
$
$
$ 332,311 $
3,064,215
tion Fund
Fund for the repayment of an interfund loan for the construction of the Library
for the repayment of an interfund loan on the construction of Fire Stations 2 and 5
Item #08J 4 WaSment2
ANNUAL REPORT OF DEVELOPMENT IMPACT /MITIGATION FEES
IDENTIFICATION OF PUBLIC IMPROVEMENT PROJECTS FOR WHICH MITIGATION FEES WERE EXPENDED
FOR FISCAL YEAR ENDED JUNE 30, 2019
City of Encinitas, California
Requirement E of Section 66006 - Identify for the Fiscal Year each public improvement on which fees were expended, the amount of expenditures on each improvement including
the total percentage of the cost of the public improvement that was funded with the fees.
Projects Listed by Fund
Project
Expenditures
Fee Funding
Expenditures
Funding from Other
Sources
of Cost
Funded by
Fees
Project Status
232 - PARKLAND ACQUISITION FEE
$270,807
52,741
$142,833
52,741
$127,974
-
52.7%
100.0%
Project Started
Project Started
CP04G - PARK IMPROVEMENT PROJECTS
CP14A - STANDARD PACIFIC PARK SITE DESIGN
232 - PARKLAND ACQUISITION FEE Total
$323,548
$195,574
$127,974
60.4%
233 - TRAFFIC MITIGATION FEE
$148,686
2,498
34,108
$62,036
2,498
17,054
$86,649
-
17,054
41.7%
100.0%
50.0%
Ongoing
Ongoing
Project Started
CS02F - TRAFFIC SAFETY AND CALMING
CS02G - TRAFFIC SIGNAL MODIFICATIONS
CS11C - LA COSTA AVENUE IMPROVEMENTS
233 - TRAFFIC MITIGATION FEE Total
$185,292
$81,589
$103,703
44.0%
234 - REGIONAL TRAFFIC MITIGATION FE
$446,365
$109,909
$336,456
24.6%
Project Started
CS16F - EL PORTAL PED /BIKE UNDERPASS PROJ
234 - REGIONAL TRAFFIC MITIGATION FE Total
$446,365
$109,909
$336,456
24.6%
236 - RECREATION TRAILS FEES
$113,018
$0
$113,018
0.0%
Ongoing
CPOOF - RECREATIONAL TRAILS DEVELOPMENT
236 - RECREATION TRAILS FEES Total
$113,018
$0
$113,018
0.0%
239 - FLOOD CONTROL FEE
$16,801
86,301
$16,801
86,301
$0
100.0%
100.0%
Project is ongoing for 3 years ofthe
5 year requirement
Project Started
CD17B - 5YR HABITAT - BIOLOGICAL & MONITORING
WD16A - S LEUCADIA STORM DRAIN
239 - FLOOD CONTROL FEE Total
$103,102
$103,102
$0
100.0%
Grand Total
$1,171,325
$490,174
$681,151
2020 -04 -15 Item #08J 5 oftt,5hment3