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HomeMy WebLinkAboutReso 08-23 FY 2021-22 Findings Development Impact FeesRESOLUTION NO. 08-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA MAKING FINDINGS FOR UNEXPENDED DEVELOPMENT FEES IN ACCORDANCE WITH GOVERNMENT CODE SECTION 66000 AND REVIEWING AND ACCEPTING ANNUAL DEVELOPMENT FEE DISCLOSURE INFORMATION THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Mitigation Fee Act, Government Code Section 66000 et seq., authorizes the City to impose, collect, and expend mitigation fees to offset the impacts of development within the City; and WHEREAS, among the procedural requirements mandated by the Mitigation Fee Act is a requirement that beginning with the fifth fiscal year following deposit of development fees into a designated account, and each fifth fiscal year thereafter, the City make specified findings regarding any portion of the fees that remain unexpended; and WHEREAS, the City has deposited all development impact fees that it has received in a separate non -commingled capital facilities fund established for such a purpose, pursuant to Government Code Sections 66006(a) and (b); and WHEREAS, a portion of the fees currently deposited in the City's Development Impact Funds for: Administration, Streets, Highway 41/Main Street, Traffic Impact, Storm Drain, Calvary Baptist Drain, Sewer Master Plan, and Flood Hazard Plan were collected over five years ago, and therefore the City wishes to make the findings required by Government Code Section 66001(d); and WHEREAS, the City also wishes to memorialize that it has made public certain information, pursuant to the annual information disclosure requirements of Government Code Section 66006(b), including but not limited to the amount of the fee, the beginning and ending balance of the fee account or fund, and the interest earned thereon, available to the public at least fifteen (15)days before the City Council considers this matter. The information required by Government Code Sections 66001 and 66006 is set forth in the FY 2021-22 AB1600 Annual and Five -Year Report: City of Morro Bay ("Development Impact Fee Report") considered concurrently herewith (Attachment 1); and WHEREAS, on February 13, 2023, the information in the above -referenced recital was made available to the public as required by Government Code Section 66006(b); and WHEREAS, on February 28, 2023, the above -referenced recitals were presented to City Council at a duly noticed, regularly scheduled public meeting. NOW, THEREFORE, the City Council of the City of Morro Bay hereby finds, determines, and resolves as follows: Section 1. The recitals set forth above are true and correct and are incorporated herein by reference. Section 2. The City Council has considered the full record before it, which may include 01181.0005/858454.1 but is not limited to the staff report, the Development Impact Fee Report, testimony by staff and the public, and other materials and evidence submitted or provided. Section 3. The City Council finds that the Administration Development Impact Fee Fund currently contains $261,789.13 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows: A. Additional funds are needed to design and construct updated City Administration facilities. B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because expanded City facilities are required to accommodate the additional service needs associated with the properties that paid these fees. C. The estimated total cost of expanded administrative facilities such as City Hall will be updated in the forthcoming capital needs assessment. The City's funding sources will include unexpended Development Impact Fees of $261,789.00, future fees, and other available capital funding sources. D. The unexpended fees were deposited in the Administration Development Impact Fees Fund, which is the appropriate fund to finance administrative facilities. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2024. Section 4. The City Council finds that the Street Maintenance Development Impact Fee Fund currently contains $45,656.49 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows: A. Additional funds are needed to complete street maintenance projects. B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because improvements will be made to mitigate impacts to streets associated with the properties that paid these fees. C. The estimated total cost of streets improvements will be updated in the forthcoming capital needs assessment. The City's funding sources will include unexpended Development Impact Fees of $45,656.49, future fees, and other available capital funding sources. D. The unexpended fees were deposited in the Street Maintenance Development Impact Fees Fund, which is the appropriate fund to finance street maintenance projects. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2023. Section 5. The City Council finds that the Highway 41/Main Development Impact Fee Fund currently contains $45,242.10 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows: 01181.0005/858454.1 2 A. Additional funds are needed to design and replace the existing intersection at Highway 41/Main Street. B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the intersection improvement will positively impact the properties that paid these fees. C. The estimated total cost of the Highway 41/Main Street Intersection Project is $8,871,136.00. The City's funding sources will include unexpended Highway 41/Main Development Impact Fees of $45,242.10, $1,800,000.00 in Measure E District Transaction Tax, $600,000.00 General Fund appropriation, $70,630.00 Transit Fund appropriation, $3,282,705 in grant funding, and other available capital funding sources. D. The unexpended fees were deposited in the Highway 41/Main Development Impact Fees Fund, which is the appropriate fund to finance this intersection improvement. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2024. Section 6. The City Council finds that the Traffic Development Impact Fee Fund currently contains $30,992.00 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows: A. Additional funds are needed to design and implement traffic improvements to mitigate impacts of new development. B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the improvements will mitigate impacts of development of the properties that paid these fees. C. The estimated total cost of traffic improvements will be updated in the forthcoming capital needs assessment. The City's funding sources will include unexpended Development Impact Fees of $30,992.00, future fees, and other available capital funding sources. D. The unexpended fees were deposited in the Traffic Development Impact Fees Fund, which is the appropriate fund to finance these traffic improvements. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2024. Section 7. The City Council finds that the Storm Drain Development Impact Fee Fund currently contains $4,208.00 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows: A. Additional funds are needed to design and improve the City's storm drain facilities to accommodate new development. B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the storm drain improvements will mitigate impacts of development from the properties that paid these fees. 01181.0005/858454.1 C. The estimated total cost of storm drain improvements will be updated in the forthcoming capital needs assessment. The City's funding sources will include unexpended Development Impact Fees of $4,208.00, future fees, and other available capital funding sources. D. The unexpended fees were deposited in the Storm Drain Development Impact Fees Fund, which is the appropriate fund to finance these storm drain improvements. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2023. Section 8. The City Council finds that the Calvary Baptist Drain Development Impact Fee Fund currently contains $314.36 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows: A. Additional funds are needed to design and improve the storm drain adjacent to Calvary Baptist. B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the improvements to the storm drain will help mitigate the impact from development of the properties that paid these fees. C. The estimated total cost of this storm drain improvement will be updated in the forthcoming capital needs assessment. The City's funding sources will include unexpended Development Impact Fees of $314.36, future fees, and other available capital funding sources. D. The unexpended fees were deposited in the Calvary Baptist Storm Drain Development Impact Fees Fund, which is the appropriate fund to finance this storm drain improvements. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2024. Section 9. The City Council finds that the Sewer Master Plan Development Impact Fee Fund currently contains $37,238.50 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows: A. Additional funds are needed to update the City's Sewer Master Plan. B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the Sewer Master Plan will positively impact the properties that paid these fees. C. The estimated total cost of Sewer Master Plan will be updated in the forthcoming update to the One Water Plan and any required follow up. The City's funding sources will include unexpended Development Impact Fees of $37,238.50, future fees, and contributions from the Sewer Operating Fund. D. The unexpended fees were deposited in the Sewer Master Plan Development Impact Fees Fund, which is the appropriate fund to finance the Sewer Master Plan 01181.0005/858454.1 4 development. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2024. Section 10. The City Council finds that the Flood Hazard Development Impact Fee Fund currently contains $17,385.99 in unexpended Development Impact Fees collected more than five years ago. In accordance with Government Code section 66001(d)(1), the City Council finds as follows: A. Additional funds are needed to improve flood hazard areas in the city. B. There exists a reasonable relationship between the unexpended funds described above and the purpose for which they were generated because the improvements to the flood hazard areas will help mitigate impacts from development of the properties that paid these fees. C. The estimated total cost of improvements to the flood areas will be updated in the forthcoming capital needs assessment. The City's funding sources will include unexpended Development Impact Fees of $17,385.99, future fees, and other available capital funding sources. D. The unexpended fees were deposited in the Flood Hazard Development Impact Fees Fund, which is the appropriate fund to finance the improvements. All future fees will also be deposited into this fund. The approximate date by which the above Development Impact Fee funds will be deposited into the appropriate account or fund for expenditure is 2024. H H H H H H H H H H 01181.0005/858454.1 Section 11. In accordance with Government Code Section 66006(b), the City Council has reviewed and accepted the annual disclosure information made available to the public regarding City Development Impact Fees as presented to the City Council in the Development Impact Fee Report considered concurrently herewith as Attachment 1 hereto, and also placed on file with the City Clerk. PASSED AND ADOPTED by the City Council of the City of Morro Bay, California, at a regular meeting held on the 281h day of February 2023, by the following vote: AYES: Wixom, Barton, Edwards, NOES: None ABSENT: None ABSTAIN: None RECUSED: None ATTEST: Ford, Landrum CARLA WIXOM, Mayor 01181.0005/858454.1 ATTACHMENT 1 CITY OF MORRO BAY ANNUAL STATUS REPORT ON RECEIPT AND USE OF DEVELOPMENT IMPACT FEES 1UNE 30, 2022 Government Impact Fees Government Impact Fees are collected to ensure that new development pays the cost of infrastructure expansion required to meet the needs of that new development, effectively transferring the cost burden of growth from the existing rate and taxpayers. The collected fees are held in fund 900, Government Impact Fees Accumulation Fund and are permitted to be used for capital projects for new facilities, vehicles, and rehabilitation and/or renovation of existing facilities, so long as the rehabilitation or renovation is needed to serve the new development that has paid the fee. Fund 900 Beginning Fund Cash Balance FY 2021-22 (07/0112021) 989,880 Bal Fees Interest Fees Remaining 7/1/2021 Collected Earned Used Balance Administration Fees $ 528,997 $ 127,905 $ 2,028 $ (9,900) $ 649,030 Police Fees $ 8,584 $ 40,533 $ 152 $ (1,490) $ 47,778 Fire Fees $ 26,890 $ 55,021 $ 253 $ - $ 82,164 Street Fees $ 230,235 $ 405,131 $ 1,962 $ (38,488) $ 598,840 Storm Drain Fees $ (0) $ - $ (0) $ - $ (0) Parks Fees $ 195,176 $ 116,622 $ 963 $ (23,069) $ 289,691 $ 989,880 $ 745,212 $ 5,357 $ (72,947) $ 1,667,502 Uses of Funds Pipeline Kern and Anchor - Transferred to CIP Fund $ 9,900 Shasta St Pocket Park (Bocce Ball) - Transferred to CIP Fund $ 23,069 Hwy 1/41 $ 38,488 Repave Police Annex $ 1,490 Total Use of Funds $ 72,947 Total Ending Balance FY 2021-22 (06/30/2022) $ 1,667,502 Potential future projects are provided below. These are potential projects and may or may not be approved in the City's current budget. Any expenditure from these funds would require Council authorization and approval prior to expenditure. Government Impact Fees Potential Future Projects Fund 900 Potential Future Projects Total Funds Available Administration Fees Citywide Capital and Facilities Planning $ 400,000 Total Potential Admin Projects $ 400,000 $ 649,030 Police Fees Automated License Plate Reader Camera System $ 159,000 Total Potential Police Projects $ 159,000 $ 47,778 Fire Fees No identified future projects $ - Total Potential Fire Projects $ - $ 82,164 Street Fees Rock Parking Lot Restroom Renovation -Unfunded $ 75,000 ADA Accessibility Upgrades at Quintana and Morro Road $ 180,500 Total Potential Street Projects $ 255,500 $ 598,840 Storm Drain Fees Emergency Storm Drain Repair - Segouia Court $ 120,000 Emergecny Storm Drain Repair Juniper/Elena $ 83,000 Total Potential Storm Drain Projects $ 203,000 $ (0) Parks Fees Lila Kaiser Parking Lot ADA Improvements $ 120,000 Bocce Ball and Recreation Court Improvements S 30.000 Total Potential Parks Projects $ 150,000 $ 289,691 Total Potential Future Projects $ 1,167,500 $ 1,667,502 Affordable Housing In -Lieu Fees Affordable Housing In -Lieu Fees are collected from residential development projects when the construction of affordable housing units is impractical. The required in -lieu fee is to be paid to the City prior to the issuance of a building permit (where square footage is added) or a final tract map. The Affordable Housing In -Lieu Fee is $0.35 per square foot. The collected fees are held in the 941 fund and used solely for the affordable housing program activities, such as the Housing Element development and implementation, or transfer to another public agency for providing affordable housing in the City. Beginning Fund Cash Balance FY 2021-22 (07/01/2021) $ 257,376 Sources of Funds Bal Fees Interest Fees Remaining 7/1/2021 Collected Earned Used Balance $ 257,376 $ 35,878 $ 465 $ (150,000) $ 143,718 Uses of Funds 405 Atascadero Road $ (150,000) Total Use of Funds $ (150,000) Ending Fund Cash Balance (06/30/2020) $ 143,718 Potential Future Projects Local Housing Agency $ 5,000 Total Potential Projects $ 5,000 Sewer Impact Fees Pursuant to Government Code, revenues derived from the City's impact fees can only be used for the purpose for which the charges are collected. Wastewater impact fees recover costs for buying in to existing facilities and assets. As such, this share of each fee represents a reimbursement to the City's existing customer base for previously -funded facilities and may potentially be used for any purpose. However, the City's practice is conservative and uses these fees to exclusively fund capital improvements. The collected fees are held in the 952 fund and are used solely for wastewater capital improvements. Beginning Fund Cash Balance FY 2021-22 (711/2021) $0.00 Sources of Funds Bal Fees Interest Fees Remaining 7/1/2021 Collected Earned Used Balance $ - $ 141,487 $ 821 $ (142,308) $ - Uses of Funds Interfund Transfer to WRF Capital Project $ 142,308 Total Use of Funds $ 142,308 Ending Fund Cash Balance (06/30/2022) $0.00 Potential Future Projects Lift Station No 1. Force Main Replacement $ 400,000 Beachcomber Drive Sewer Main Replacement $ 1,207,000 Total Potential Projects $ 1,607,000 Water Impact Fees Pursuant to Government Code, revenues derived from the City's impact fees can only be used for the purpose for which the charges are collected. Water impact fees are designed to recover the cost of existing water system facilities and assets as well as the cost of system upgrades and expansion needed to serve the City. The collected fees are held in the 951 fund and are restricted to be used solely for water system facilities, assets and system upgrades and expansion. Beginning Fund Cash Balance FY 2021-22 $0.00 Sources of Funds Bal Fees Interest Fees Remaining 7/1/2021 Collected Earned Used Balance $ $ 141,949 $ 85 $ (142,033) $ Uses of Funds Interfund Transfer to WRF Capital Project $ 142,033 Total Use of Funds $ 142,033 Ending Fund Cash Balance (06/30/2022) $0.00 Potential Future Projects OneWater Plan Update $ 60,000 Reverse Osmosis Facility Upgrades $ 80,000 Water Tank Rehabilitation $ 125,000 Total Potential Projects $ 265,000 Trust & Agency Fund Impact Fee Revenues The Trust & Agency fund (fund 515) has historically been used by the city to hold funds with restricted purposes. There are three impact fees that remain in the Trust & Agency fund, traffic impact, sewer master plan impact and flood hazard plan impact. In addition, previous years balances exist for the Highway 41/Main Impact, Storm Drain Impact and Calvary Baptist Drain Impact. These funds are restricted to use of related projects and improvements. Beginning Fund Cash Balance FY21-22 (07/01/2021) 251,049 Sources of Funds Highway41/Main (2600) Traffic Impact/All Surces (2607) Storm Drain (2613) Calvary Baptist Drain Impact ( 2616) Sewer Master Plan (2622) Flood Hazard Plan ( 2740) Subtotal General Fund Bal Fees Fees Remaining 7/1/2021 Collected Used Balance $ 45,242 $ 182,807 $ $ 228,050 $ 49,973 $ - $ $ 49,973 $ 6,837 $ 6,150 $ $ 12,987 $ 314 $ - $ $ 314 $ 146,073 $ - $ $ 146,073 $ 2,610 $ 738 $ $ 3,348 $ 251,049 $ 189,695 $ $ 440,744 Uses Of Funds No Funds Used in FY 2021-22 Ending Fund Cash Balance (06130/2022) $ 440,744 4 Potential future projects using impact fee balances in the Trust and Agency Fund (515) are provided below. These are potential projects and may or may not be approved in the City's current budget. Any expenditures from these funds would require Council authorization and approval prior to expenditure. Fund 515 Potential Future Projects Estimated Cost Funds Available Highway4l/Main Impact Fee Traffic Impact/All Sources Citywide Speed Survey State Rt (SR) 1/SR 41 Interchange Improvement $ $ 75,000 600,000 $ $ 228,050 49,973 Potential Future Projects $ 675,000 $ 278,023 Storm Drain Impact Calvary Baptist Drain Impact Local Roadway Safety Plan $ 50,000 $ $ 12,987 314 Potential Future Projects $ 50,000 $ 13,301 Sewer Master Plan Impact Flood Hazard Plan Impact Wastewater Treatment Plan Decomissioning $ 135,000 $ $ 146,073 3,348 Potential Future Projects $ 135,000 $ 149,421 Total Potential Future Projects & Available Funds $ 860,000 $ 440,744