HomeMy Public PortalAbout6) 7D Reso to Accept Annual Fee Report and extend time period for use of in lieu feesCOMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
DATE: December 17, 2019
TO: The Honorable City Council
FROM: Bryan Cook, City Manager
By: Greg Murphy, City Attorney
Scott Reimers, Interim Community Development Director
AGENDA
ITEM 7.D.
SUBJECT: CONSIDERATION OF A RESOLUTION TO ACCEPT ANNUAL FEE
REPORT AND MAKE CERTAIN FINDINGS THAT EXTEND THE TIME
PERIOD FOR THE USE OF CERTAIN UNSPENT STREET AND
SIDEWALK IN LIEU FEES FOR ANOTHER FIVE YEARS
RECOMMENDATION:
The City Council is requested to adopt Resolution No. 19-5439 that accepts the annual
development impact fee report and make certain findings to extend the time period for
the use of certain unspent street and sidewalk in lieu fees for another five years.
BACKGROUND:
1. The City of Temple City, like many other local agencies, levies fees on new
development within the City in order to fund public improvements necessitated by
such development.
2 . In 1987, the State enacted the Mitigation Fee Act, which added Section 66000 to the
Government Code. The Mitigation Fee Act imposes certain accounting and reporting
requirements on local agencies that collect development fees.
ANALYSIS:
The City currently collects in lieu fees for the repair and construction of sidewalks and
the resurfacing of streets, as a result of new development. These fees are collected to
fulfill various General Plan policies which require adequate sidewalks , evaluating the
impacts of growth on street, and requiring new development to pay its fair share of its
impact on maintenance. Additionally, it is required that staff assess whether new
development is consistent with the General Plan; place reasonable conditions to ensure
City Council
December 17, 2019
Page 2 of 4
the maintenance of public health, safety, and welfare; and deny subdivisions unless
adequate improvements are constructed. In addition, the City Council approved a
policy on August 15, 2017 establishing an in-lieu fee under certain circumstances. The
street resurfacing and sidewalk fees are collected and kept in separate accounts.
The City is required to prepare an annual report regarding development impact fees
within 180 days after the close of each fiscal year and review it at a publicly noticed
meeting. If the City has unexpended fees in the funds after the fifth fiscal year following
the first deposit into that fund, then the City is required to make certain findings with
respect to any unexpended fees to extend the time period to use such fees, as part of
the annual report process. The City has identified certain unexpended fees remaining
in accounts related to street resurfacing and sidewalks. The purpose of this item is for
the City to review the report summarizing the development impact fees and consider
findings to extend the time period to preserve the use of the unexpended portions of the
funds for street resurfacing and sidewalk purposes.
Pursuant to the Mitigation Fee Act, the City is required to prepare annual reports related
to funds or accounts containing development impact fees and make such report
available for the public for their review, at least 15 days before a regular public meeting.
If certain fees are unspent after approximately five fiscal years, the City is required to
make certain findings to extend the use of such fees for another five years.
Annual Report:
Staff has prepared an annual report for the City Council's review that contains the
information required by Government Code Section 66006. This report generally
includes the following information:
a. A brief description of the type of development fees in the fund/account;
b. The amounts of the fees collected, and any interest earned;
c. The beginning and ending fund balances for the fiscal year;
d. Identification of the public improvements for which fees were expended together
with the amount of such expenditures;
e. Information regarding the schedule for commencement of certain public
improvements to be funded with such fees;
f. Description of any inter-fund transfers or loans made from the fund; and
g. The amount of any refunds made.
The Annual Report indicates that from Fiscal Year 2014-2015 through the end of Fiscal
Year 2018-2019, the City had collected $458,671 in street resurfacing fees and $92,847
in sidewalk fees. At the end of the most recent fiscal year, the City collected $73,641.00
in street resurfacing fees and $36,207.90 in sidewalk fees. The City has not spent any
fees collected, borrowed any of the funds, and has not issued any refunds.
City Council
December 17, 2019
Page 3 of 4
Findings Related to Unexpended Fees:
Because there are unexpended funds, staff has also reviewed and prepared findings for
the City Council's consideration that address the requirements outlined under
Government Code Section 66001 (d). These findings identify:
a. The purposes to which the development fees are to be used, and how extending
the time to use such fees will further that purpose;
b. A reasonable relationship between the fee and the purpose for which it is charged,
including whether there are improvements still needed to address those purposes;
c. The sources and amounts of funding anticipated to complete financing in
incomplete improvements to be funded by the fees; and
d. The approximate date for which the financing or anticipated financing of the
incomplete improvements will be complete.
The City has additional funding sources to repave the streets and to install sidewalks
including the General Fund, Measure R, the Road Maintenance and Repair Act,
Measure M, and the Transportation Development Account. However, these revenue
sources are insufficient to cover the cost of the City's street repaving and sidewalk
installation needs. The City recently complete a Pavement Management Program
which details the quality of the City's streets and the necessary cost to improve them to
acceptable standards. The report demonstrates that the City would need to spend at
least $2.5 million a year for the next ten years to just keep the City's streets at the same
condition as they are now. The cost of completing the City's sidewalk system is
unknown but would well exceed $2 million. At the current pace of development it would
take at least 50 years for the City to raise $2 million in sidewalk in-lieu fees to complete
the work. Therefore, it is necessary to continue to reserve these funds over a longer
period.
Staff recommends that, after reviewing the report and considering the findings, City
Council approve the resolution that accepts the report and extends the use of the
unexpended fees remaining in Account 01-2311 (related to street resurfacing) and 01-
2312 (related to sidewalks).
Environmental Review:
The purpose of this resolution is to accept the annual report and adopt findings to
extend the use of existing fees collected by the City. In other words, this action only
involves governmental funding mechanisms and fiscal activities related to capital
projects to maintain existing services. As such, the approval of the resolution is not a
project within the meaning of California Environmental Quality Act, therefore no further
environmental review is necessary.
City Council
December 17, 2019
Page 4 of 4
CITY STRATEGIC GOALS:
Adopting the staff recommendation will achieve the City's strategic goal of "Public
Health and Safety" by providing well managed infrastructure and the goal of "Good
Governance" by promoting financial stability by making use of these collected funds.
FISCAL IMPACT:
Continuing the reserve of these in-lieu fees will allow the City to perform work that would
otherwise come from the General Fund or other funding sources. Using these in-lieu fees
for a larger, future project will improve the economies of scale and allow for more efficient
use of these funds. Refunding the money in these accounts would mean using other
sources, such as the general fund, to pay for improvements.
ATTACHMENTS:
1. Resolution 19-5439
2. Exhibit A to Resolution -Annual Report
ATTACHMENT 1 -
RESOLUTION 19-5439 ffl -
RESOLUTION 19-5439
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMPLE CITY, ACCEPTING THE DEVELOPMENT IMPACT
FEE REPORT AND MAKING CERTAIN FINDINGS THAT
EXTEND THE TIME PERIOD FbR THE USE OF CERTAIN
UNSPENT STREET AND SIDEWALK IN LIEU FEES FOR
ANOTHER FIVE YEARS
WHEREAS, the City has established development impact fees for street resurfacing and
sidewalk purposes impacts that result from certain developmental projects ("Street and Sidewalk
In Lieu Fees"); and
WHEREAS, the City has deposited Street and Sidewalk In-Lieu Fees into Account No. 01-
2311 (related to street resurfacing) and No. 01-2312 (related to sidewalks); and -
WHEREAS, pursuant to Government Code Section 66006, the City is required to prepare
an annual report regarding development impact fees, including the Street and Sidewalk In Lieu
Fees, within 180 days after the close of each fiscal year; and
WHEREAS, City staff has prepared a report that contains the information required by
Government Code Section 66006 ("Report"), a copy of which is attached as Exhibit A and
incorporated by this reference; and
WHEREAS, this Report has been made available to the public for their review, at the
Clerk's office and on the City's website;
WHEREAS, this Report has been placed on the agenda for the date of the next regularly
scheduled public meeting, no earlier than 15 days after it had been made available for public review;
and
WHEREAS, the City has noticed public meeting for the purpose of reviewing such Report;
and
WHEREAS, pursuant to Government Code Section 66001 (d), the City is required to make
findings with respect to any unexpended fees for the fifth fiscal year following the first deposit into
the account or fund in order to extend the time period to use the unexpended fees; and
WHEREAS, the City has identified through the Report certain unexpended fees remaining
in Account No. 01-2311 (related to street resurfacing) and No. 01-2312 (related to sidewalks), as
further identified and set forth in Exhibit B, and has considered all the findings set forth in
Government Code Section 66001(d).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Temple City
does hereby resolve, declare, determine, and order as follows:
SECTION 1. CEQA Review. The City Council determines, based on the entire record
and in the exercise of its independent judgment, that this action involves governmental funding
mechanisms and fiscal activities related to capital projects to maintain existing services. As such,
the apprbval of the Report and the findings for extending the use of such fees is ncit a project within
the meaning of CEQA, under California Environmental Quality Act (CEQA) Guidelines sections
15273 [exempting rates, tolls, fares, and charges] and 15378(b)(4) [not a project].
SECTION 2. Acceptance of Report. The City Council accepts and approves of the
Report.
Resolution No. 19-5493
Page 2 of 3
SECTION 3. Findings for Unexpended Fees. The City Council finds as follows:
A. Street Resurfacing Fund (Account No. 01-2311). The City Council
has reviewed the attached Exhibits and finds as follows:
Purpose. The original purpose for the collecting the street resurfacing fees referenced in Exhibit B
was to resurface streets as a result of new development. The City collected $458,671 from Fiscal
Year 2014-2015 to Fiscal Year 2018-2019 including the collection of $73,641.00 in Fiscal Year
2018-2019 and none of the fees have yet been expended. However, the Pavement Management
Plan (PMP) identifies the location of the streets, including the streets providing access to such new
developments, in need of resurfacing, but as of yet has not provided sufficient funding resources
to fund the program. These in-lieu fees will provide one source of funding for the PMP.
Reasonable Relationship. There is a reasonable relationship between such fee and the original
purpose for which it is charged because the new developments will result in additional vehicle and
pedestrian trips for the streets providing access to the new developments and therefore the streets
providing access to the new developments require maintenance in the form of repaving.
Sources and Amounts of Funding for Incomplete Improvements. The City's PMP demonstrates
the need for $55. 1 million in repaving costs over the next ten years. The City has identified in its
Capital Improvement Program funding sources such as the General Fund, Measure R, Road
Maintenance and Repair Act, Measure M, and Measure C to assist in meeting these street paving
needs. These funds can be combined with the in-lieu fees to assist in paving the streets.
Approximate Dates of Deposit of Anticipated Funding. Based upon the current list of incomplete
improvements that further the original purpose of the fees, the City anticipates that the City's back
log of streets needing to be repaved within 1 0 years. However, this will require additional funding
sources beyond Measure R, the Road Maintenance and Repair Act, Measure M, and Measure C.
To maintain the existing road conditions, which are below national standards, the City would need
to spend $2.5 million a year. Utilization of there funds will depend on the pace and location of
future development, which are unknown variables.
B. Sidewalk Fund (Account No. 01-2312). The City Council has reviewed the
attached Exhibits and finds as follows:
Purpose. The original purpose for the collecting the sidewalk fees referenced in Exhibit B was to
install sidewalks needed as a result of new development. The City collected $92,947.90 from Fiscal
Year 2014-2015 to Fiscal Year 2018-2019 including the collection of $36,207.90 in Fiscal Year
2018-2019 and none of the fees have yet been expended. However, there are many segments of
City streets that do not have sidewalk and therefore do not meet General Plan policy M 3.3 and the
Public Works Policy on Sidewalk Construction, approved by the City Council on August 15, 2017,
and these sidewalk fees support developing the pedestrian network associated with the pedestrian
activity generated by these new developments.
Reasonable Relationship. There is a reasonable relationship between the fee and the original
purpose for which it is charged because the new developments will result iry additional pedestrian
trips and therefore the new developments require sidewalks.
Sources and Amounts of Funding for Incomplete Improvements. The estimated cost of the City's
incomplete improvements is not fully known but would be well beyond $2 million. The City has
identified in its Capital Improvement Program funding sources such as the General Fund and
Transportation Development Account to assist in meeting these sidewalk installation needs. These
funds can be combined with the in-lieu fees to assist in installing sidewalks.
Approximate Dates of Deposit of Anticipated Funding. Based upon the current list of incomplete
improvements and the existing amount and rate of in-lieu fees collected, the City would not expect
to complete these improvements for more than 50 years. Completing this project will require
additional funding sources beyond the in-lieu fees and the Transportation Development Account.
A project of this size with limited funding will not occur all at once but will need to be broken down
Resolution No. 19-5493
Page 3 of 3
into smaller projects. As development occurs and funds are collected, they will be combined to
form these smaller, targeted projects. Utilization of these funds will depend on the pace and
location of future development, which are unknown variables.
PASSED, APPROVED AND ADOPTED ON_ DAY OF DECEMBER, 2019.
ATTEST: CITY OF TEMPLE CITY:
Peggy Kuo, City Clerk Nanette Fish, Mayor
APPROVED AS TO FORM:
Gregory M. Murphy, City Attorney
I, PEGGY KUO, CITY CLERK of the City of Temple City do hereby certify that the foregoing
Resolution was adopted at a Regular Meeting of the City Council of the City of Temple City held
on the_ day of December, 2019.
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmember -
Councilmember -
Councilmember -
Councilmember -
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of
Temple City, California, this_ day of December, 2019.
Peggy Kuo, City Clerk
ATTACHMENT 2, EXHIBIT A -
ANNUAL FEE REPORT ffl
Ill
fl -
ANNUAL REPORT FOR STREET AND SIDEWALK IN-
LIEU FEES
FISCAL YEAR 20 18 TO 2019
INTRODUCTION :
The development fees in thi s report are meant to fund the cost of key cap ital facilities that will b e needed to meet
the City's growth demands. Government Code su bdivis ion 66006 sets forth the ann ual com pli ance r eporting
requirem ents as follows:
1. A brief description of the type of fee in the account o r fund.
2. Th e amo unt of the fee.
3. Th e beginning and ending balance of the account or fund.
4. The amount of the fees collected, and the interest ea rn ed .
5. A n id entifi cation of each public improvement on which f ees were expe nded and th e amou nt of the
expenditures on each improveme nt, including the total percentage of the cost of the public improvement
that was funded with fees.
6. An identifica tion of an approximate date by which the co nstru ction of the public improveme nt w ill
co mmen ce if the loca l agen cy determines that sufficient funds have been co lle cted to compl et e financing
on an incomplete public improvement, as id entified in paragraph (2) of subdivision (a) of Sec tion 6600 1,
and the public improvemen t remains in complete.
7. A description of eac h inter-fund transfer or loa n' made fro m t he acco unt or fund, inclu d ing the public
improveme nt on which th e transferred or loan ed fees wil l be expe nded, and in the case of an inter-fund
loan, the date on w hi ch the loan will be repaid and the rate of interest that t he account or fund w ill
rec eive on th e loan
8. The amoun t of refunds made pursuant to subd ivisio n (e) of Sectio n 6600 1 and any all oca tio n pursua nt to
subdivision (f) of Sec tion 66001.
RESPONSE TO THE REPORTING REQUIREMENTS :
1. A brief description of the type of fee in the account or fund.
St ree t In-Lieu Fee: To finance the repair of st reets that are needed as a resu lt of new deve lopme nt and to
fulfill:
• Gene ral Plan Po li cy M 1.2, "Transportati on Sys t em Impacts . Evaluate transportation and devel opment
projects to acco unt for th e full benefits and impacts on all modes of transportation, not just
auto mobil es."
• Genera l Plan Policy M 6.3 "Development Con tributions to O&M Costs. Inves t igate the feasibility of
requ irin g new devel opment and redevelopment to contribute to the ope r atio ns and maintenance of
new transportati on infrastructure."
• Temple City Municipal Code 9-1 E, "Purpose of Site Plan Review Process: A site plan revi ew is a
discretionary land use permit that is required for all proposed la nd uses that involve construction. The
purpose of the site plan review p ro cess is t o ... Ensure t hat constructi on occurs in a ma nner consistent
with the overa ll goals and objectives of the genera l plan and the zo ning code ... A ll ow all ci t y
970 1 LAS TUNAS DR I VE, TEMPLE C I TY, CA 91780
T: 626.285.21 7 1
WWW.TEMP L EC I TY.US/CD D
TEMPLE CITY COMMUNITY DEVELOPMENT DEPARTMENT
ANNUAL REPORT FOR STREET AND SIDEWALK IN-LIEU FEES
departments the opportunity to review new development proposals and place reasonable conditions
to ensure that the public health, safety and welfare are maintained."
• Temple City Municipal Code 9-2-3, "No subdivision, lot split or other division of land contemplated by
said act and/or this chapter, shall be approved unless the following improvements are constructed or
required to be constructed in order to service the lots being created ... An adequate public and/or
private street and/or alley system designed and constructed to serve each lot proposed to be
created ... Any and all other public improvements, necessary to provide all services to each lot
proposed to be created."
Sidewalk In-Lieu Fee: To finance the construction of new sidewalks that are needed as a result of new
development and to fulfill:
• General Plan Policy M 1.1, "Complete Streets. Require that the planning, design, and construction of
all transportation projects consider the needs of all modes of travel to create safe, livable, and inviting
environments for pedestrians, bicyclists, motorists, and public transit users of all ages and abilities."
• General Plan Policy M 3.3, "Sidewalks for Roadways. Require adequate and well-maintained sidewalks
along all City roadways to allow residents of all ages and abilities to walk in a safe and accessible
manner."
• Temple City Municipal Code 9-1 E, "Purpose of Site Plan Review Process: A site plan review is a
discretionary land use permit that is required for all proposed land uses that involve construction. The
purpose of the site plan review process is to ... Ensure that construction occurs in a manner consistent
with the overall goals and objectives of the general plan and the zoning code ... Allow all city
departments the opportunity to review new development proposals and place reasonable conditions
to ensure that the public health, safety and welfare are maintained."
• Temple City Municipal Code 9-2-3, "No subdivision, lot split or other division of land contemplated by
said act and/or this chapter, shall be approved unless the following improvements are construct,~d or
required to be constructed in order to service the lots being created ... An adequate public and/or
private street and/or alley system designed and constructed to serve each lot proposed to be
created ... Any and all other public improvements, necessary to provide all services to each lot
proposed to be created."
• Public Works Policy on Sidewalk Construction, approved by the City Council on August 15, 2017.
2. The amount of the fee.
Fee
Street Resurfacing
A.C. (2 inches)
A.C. (3 inches)
A.C. (4 inches)
A.C. (6 inches)
Sidewalk, 4 inches
. Contingency
Inflation
Grand Total
PAGE2OF4
Unit Cost
$1.06 / square foot
$1.35 / square foot
$1.66 / square foot
$2.26 / square foot
$4.35 / square foot
Total Cost
"A"
"B"
(A+B) x15 percent= "C"
(A+B+C) x 12 percent= "D"
A+B+C+D
TEMPLE CITY COMMUNITY DEVELOPMENT DEPARTMENT
ANNUAL REPORT FOR STREET AND SIDEWALK IN-LIEU FEES
3. The beginning and ending balance of the account or fund.
Fee Account/Fund Beginning Balance Ending Balance
Street Resurfacing ____ .::0.:..1 ·.::0..:.0::.0-_;:0..:.0.::-2=3.:..1 .:..1 ______ _:,::$3::;8'-"5"-',0:.::3.::0·:.:::0::.0 _____ ..:,:$_,_45:::8:2,6:::7c.:1.:_:.0:.:::....0
Sidewalk 01-000-00-2312 $56,640.00 $92,847.90
4. The amount of the fees collected, and the interest earned for fiscal year 2018-2019.
Fee Fees Collected Interest Earned Total
Street Resurfacing $73,641.00
Sidewalk $36,207.90
5. An identification of each public improvement on which fees were expended and the amount of the
expenditures on each improvement, including the total percentage of the cost of the public
improvement that was funded with fees.
The City did not expend any funds for public improvements from either of the accounts.
6. An identification of an approximate date by which the construction of the public improvement will
commence if the local agency determines that sufficient funds have been collected to complete
financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of
Section 66001, and the public improvement remains incomplete.
Street Paving: Based upon the current list of incomplete improvements that further the original purpose of the
fees, the City anticipates that the City's back log of streets needing to be repaved within 10 years. However,
this will require additional funding sources beyond Measure R, the Road Maintenance and Repair Act,
Measure M, and Measure C. To maintain the existing road conditions, which are below national standards,
the City would need to spend $2.5 a year. Utilization of there funds will depend on the pace and location of
future development, which are unknown variables.
Sidewalks: Based upon the current list of incomplete improvements and the existing amount and rate of in-
lieu fees collected, the City would not expect to complete these improvements for more than 50 years.
Completing this project will require additional funding sources beyond the in-lieu fees and the Transportation
Development Account. A project of this size with limited funding will not occur all at once but will need to be
broken down into smaller projects. As development occurs and funds are collected, they wili be combined to
form these smaller, targeted projects. Utilization of these funds will depend on the pace and location of
future development, which are unknown variables.
Once sufficient funds are in place and the location or locations where the work will be performed, the process
and schedule generally takes a year.
Task Estimate time period
Prepare Plans, Specifications, and Estimates Bid Package 2 months
City Council authorization to advertise the project for construction bids 1 month
Bid Advertisement 1 month
Bid Analysis and City Council apr:.p:.:ro:.:v-=a'-1 =-of:...C=.o::.n:..:.t::.ra::::c:::t'---______________ 1:...m=oc:.:nc::th"----
PAGE3OF4
TEMPLE CITY COMMUNITY DEVELOPMENT DEPARTMENT
ANNUAL REPORT FOR STREET AND SIDEWALK IN-LIEU FEES
Task Estimate time period
Contract Execution 1 month
Time allowance for Pre-construction activities, contractor move-in 1 month
Field Construction (Assuming a 3-month duration for field construction) 3 months
Sub-Total 10 months
Time allowance for any potential delays 2 months
Total Duration 12 months
7. A description of each inter-fund transfer or loan made from the account or fund, including the public
improvement on which the transferred or loaned fees will be expended, and in the case of an inter-
fund loan, the date on which the loan will be repaid and the rate of interest that the account or fund
will receive on the loan
The City did not make any inter-fund transfers or loans from the above accounts.
8. The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant
to subdivision (f) of Section 66001.
The City refunded $4,700 to from Account 01-000-00-2312 to M&N Kitchen-Bath for 9951 Miloann St. on
06/13/19.
PAGE4OF4