SR 01-24-2017 3J
Ci ty Council
Report
City Council Meeting : January 24, 2017
Agenda Item: 3.J
1 of 12
To: Mayor and City Council
From: Gigi Decavalles -Hughes, Director , Finance Department, Financial Operations
Subject: Annual Reporting of Developer Impact Fees
Recommended Action
Staff recommends that the City Council review the FY 2015 -2016 Mitigation F ee Act
Report.
Executive Summary
This report transmits required information for the City’s development impact fees that
qualify under Government Code 66000 -66025, also known as the Mitigation Fee Act.
Pursuant to the Mitigation Fee Act, reporting is requ ired for the following five (5) fees:
Childcare Linkage Fee, Transportation Impact Fee, Parks and Recreation Impact Fee,
Affordable Housing Commercial Linkage Fee, and Water Demand Mitigation Fee.
These fees have been authorized by the City Council to add ress funding of some of the
highest priority long -term needs of the community – childcare, transportation, parks, and
affordable housing – that have been directly impacted by the new development.
However, these mitigation fees are only one way that Santa Monica addresses each of
these priorities. It can take a number of years to accumulate sufficient funds to
implement the relatively high cost of the projects they are eligible to fund. Staff carefully
monito r s the balance of funds and works to use the fu nds to complete eligible projects.
Following is a brief summary of each fee, the current balance, and the plans for
spending the funds:
1. Childcare Linkage Fee – This fee is collected to address the increased demand
for childcare triggered by the developme nt of commercial projects. As of June
30, 2016, the balance on hand for this fee totaled $2.5 million. Council has
approved usage of Childcare Linkage Fee funds and General Fund dollars
towards the construction of the Early Childhood Lab School (ECLS), f ormerly the
Early Child hood Education Center (ECEC).
2. Transportation Impact Fee – This fee is collected on new development and
intensified land uses and is used to fund transportation improvements, such as
new sidewalks, crosswalks, traffic signal upgrades , transit, and bicycle facilities.
As of June 30, 2016, the balance on hand for this fee totaled $3.5 million. Over
$1 million in funds have been budgeted to complete potential public
improvements. Staff closely monitors proposed development projects an d
2 of 12
available resources and incorporates these costly projects into the CIP process.
3. Parks and Recreation Impact Fee – This fee is collected from new residential and
commercial development for the upgrade and/or expansion of parks and
recreation facilities needed to accommodate additional occupants. As of June
30, 2016, the balance on hand for this fee totaled $0.3 million. Staff anticipates
utilizing the fund balance in FY 2018 -19 as a partial funding source for
construction of the Air port Park Expansion project.
4. Affordable Housing Commercial Linkage Fee – This fee is designed to contribute
to the creation of affordable housing production or preservation to offset
additional need for affordable housing generated by new commercial
development. As of June 30, 2016, the balance on hand for this fee totaled $0.6
million. Currently, insufficient funds have been collected to complete potential
public improvements. Staff will continue to closely monitor proposed
development projects and available resources.
5. Wa ter Demand Mitigation Fee – This fee is collected from new development to
mitigate the total daily water consumption rate projected for the development. As
of June 30, 2016, the balance on hand for this fee totaled $3.7 million. Staff has
identified seve ral projects that will utilize the available fund balance, including the
retrofitting of restroom facilities at both public buildings and multi -family
properties, exploratory boring and well construction, public landscape projects,
such as improvements to irrigation systems, the purchase of smart controllers
and water efficient equipment, and turf removal projects, and the planning and
design of water efficient landscaping and an irrigation system for the San Vicente
Blvd medians.
The information presented in this financial report is provided in compliance with State
law requirements and staff continues to monitor development projects and revenue
collected to ensure that fees are accounted for and expended in accordance with the
purposes for which they were collected as required by law .
Background
In 1987, the California Legislation passed Assembly Bill 1600 (AB1600), also known as
the California Mitigation Fee Act, to codify the legal and procedural parameters for
charging development impact fees as set fo rth in Government Code 66000 -66025. A
development impact fee is a monetary exaction other than a tax or special assessment
that is charged by a local government agency to an applicant in connection with
approval of a development project for the purposes o f defraying all or a portion of the
costs of the public facilities related to the development project. The Mitigation Fee Act
defines “public facilities” broadly to include public improvements, public services, and
community amenities.
3 of 12
At the time that a Mitigation Fee is established, the purpose of the fee and the use to
which the fee will be put must be clearly identified. Per Government Code 66006,
collection of these fees requires separate funds or accounts to avoid commingling and
requires that th e following information is reported within 180 days from year -end:
1. A brief description of the type of fee
2. The amount of the fee
3. The beginning and ending balances of the account or fund
4. The amount of the fees collected and interest earned
5. Identification of each public improvement on which the 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.
6. An approximate date by which the constructi on of the public improvement will
begin if the City determines that sufficient funds have been collected to
complete financing on an incomplete public improvement
7. A description of any interfund loan or transfer made from the account or fund
and the public improvement on which the transferred funds will be expended
and in the case of an interfund 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.
8. The amount of any refunds made and an y allocations of unexpended fees
that are not refunded.
Per Government Code 66001, the City must report the following on unexpended and
expended fee amounts, whether committed or uncommitted, for the fifth fiscal year
following the first deposit and every five years thereafter:
1. Identify the purpose to which the fee is to be put
2. Demonstrate a reasonable relationship between the fee and the purpose for
which it was charged
3. Identify all sources and amounts of funding anticipated to complete financing in
inc omplete improvements
4. Designate the approximate dates on which the funding is expected to be
deposited into the appropriate account or fund
4 of 12
Discussion
The City publicly posted information required by AB1600 on December 27 th for the
following fees: Child care Linkage Fee, Transportation Impact Fee, Parks and
Recreation Impact Fee, Affordable Housing Commercial Linkage Fee, and Water
Demand Mitigation Fee. Additional reporting information was also provided for the
Childcare Linkage Fee and the Water Demand Mitigation Fee. An analysis of eligible
projects resulted in revisions to the Water Demand Mitigation Fee information and an
errata sheet was publicly posted on January 9, 2017.
Child Care Linkage Fee
On December 5, 2006 Council adopted ordinance Chapter 9.65 of the Santa Monica
Municipal Code (SMMC) to establish a child care linkage fee program. This fee is
intended to address the increased demand for chi ldcare triggered by the development
of commercial projects adding floor area of at least 7,500 square feet or multi -family
residential projects.
Developers can satisfy the ordinance requirements by either paying a fee or by
agreeing to participate in th e construction or establishment of one or more child care
facilities. Fees are computed annually on July 1, increasing by a percentage equal to
the Construction Cost Index as published by Engineering News Record. Child care
linkage fees shall be paid by the final inspection date and prior to the issuance of the
Certificate of Occupancy.
The schedule of the fees for FY 2015 -16 were:
Project Fee
Residential $142.39 per unit
Office $6.76 per square foot
Retail $4.84 per square foot
5 of 12
Hotel $3.39 per squ are foot
Following adoption of the ordinance, the City established a Child Care Linkage Fee
Reserve Account for the collection of fees to be used to create new child care spaces.
The ordinance requires an annual report to City Council within 180 days af ter the last
day of each fiscal year. Since adoption of the ordinance in 2006, Council has received
an annual update on Child Care Linkage Fee Program revenues with the first actual
receipts realized in FY 2012 -13 as reported to Council on December 10, 2013.
In FY 2015 -16, $1,740,158.96 in revenues were collected and i nterest totaling
$10,537.42 was deposited into the Child Care Special Revenue Source Fund A ccount
4.365203. The revenues collected in FY 2015 -16 were added to the prior year Special
Revenue Source Fund Account 4.365203 balance of $730,897.74. The ending balance
as of June 30, 2016 for the Special Revenue Source Fund Account 4.365203 totaled
$2 ,481,594.12. No expenditures were made during the fiscal year.
Section 9.65.070 of the ordinance specifies that funds collected in the Child Care
Linkage Fee Reserve Account shall be restricted to costs related to property acquisition,
development, and c onstruction of child care facilities within the City of Santa Monica in
addition to any administrative costs incurred by the City to manage the reserve account.
Eligible expenditures shall not include ongoing operating expenses and general
maintenance of child care facilities.
To date, Council has approved $1,098,598 in available Childcare Linkage Fee funds
and $5,563,000 of General Funds for use in the construction of the Early Childhood Lab
School (ECLS), formerly the Early Childhood Education Center (E CEC).
The Early Childhood Lab School (EC LS ), a joint Capital Improvement Project (CIP) of
the City of Santa Monica and Santa Monica College (SMC), will provide child care and
early education services for up to 110 young children, and is scheduled to break ground
in the Civic Center by s ummer 2017 following permit issuance by the Department of
6 of 12
State Architecture and bidding and award of the construction contract by the college.
Staff has identified the EC LS as the kind of candidate project that would be el igible for
the disbursement of funds from the Child Care Linkage Reserve Account. City staff is
working with the City Attorney’s Office on administrative guidelines for usage of
additional Childcare Linkage Fees and will continue to closely monitor propose d
development projects and revenue collection.
Transportation Impact Fee
The City Council adopted ordinance Chapter 9.66 of the Santa Monica Municipal Code
on March 12, 2013 to establish a Transportation Impact Fee for new development and
intensified land uses that will fund transportation improvements such as new sidewalks,
crosswalks, traffic signal upgrades, transit, and bicycle facilities that are necessitated by
the new trips associated with land use change. The fees are based on residential units
or commercial square footage. The fee is charged prior to issuance on building permits,
unless State law requires the City to accept later fee payment. The Transportation
Impact Fee reflects the costs associated with transportation improvements and the
amo unt of new auto trips that can be attributed to land use changes.
The schedule of the fees for the FY 2015 -16 were:
Project Fee
Residential (dwelling unit)
Single Family, Area 1 $8,231.11 per unit
Single Family, Area 2 $8,447.72 per unit
Multi -Family, Area 1 $2,815.91 per unit
Multi -Family, Area 2 $3,574.04 per unit
Multi -Family, Area 3 $2,815.91 per unit
Non -Residential (sq ft)
Retail, Area 1 $22.74 per square foot
Retail, Area 2 $32.60 per square foot
Office, Area 1 $10.51 per square foot
Offi ce, Area 2 $11.70 per square foot
7 of 12
Medical Office, Area 1 $30.43 per square foot
Medical Office, Area 2 $32.27 per square foot
Hospital, Area 1 $0 per square foot
Hospital, Area 2 $15.92 per square foot
Lodging, Area 1 $3.90 per square foot
Lodging, A rea 2 $3.90 per square foot
Industrial, Area 1 $1.30 per square foot
Industrial, Area 2 $1.41 per square foot
Auto Sales and Display Areas,
Area 1 $1.30 per square foot
Auto Sales and Display Areas,
Area 2 $1.41 per square foot
In FY 2015 -16, $2,890,960.62 in revenues were collected and deposited into the
Transportation Impact Fee Special Revenue Source Fund Account 4.370332. The
revenues collected in FY 2015 -16 were added to the prior year Special Revenue Source
Fund Account 4.370332 balance of $564 ,263.54. The ending balance as of June 30,
2016 for Special Revenue Source Fund Account 4.370332 totaled $3,455,224.16. No
expenditures were made during the fiscal year.
Funds totaling $1,009,250 have been budgeted to help fund capital projects associa ted
with Safe Routes to Schools and bicycle connection s , most visible will be physical
changes anticipated next year near four schools to make it easier for students to walk
and bike. The funds may be spent on capital projects and staff to administer the fee;
the projects are individually expensive and additional resources to assist with the
expenditures have not been allocated.
The Transportation Impact Fees supplement the wide ranging transportation projects
that the City implements to improve transpo rtation. Efforts have recently included
completing physical improvements at Expo stations, completing the first year of Breeze
bike share service, opening the Colorado Esplanade, a new California Incline structure
8 of 12
with dedicated space for pedestrians and cyclists, organizing Coast as the community’s
first open streets event, creation of the transportation management organization and
promoting all things transportati on through the GoSaMo campaign.
Staff continues to actively pursue funding though outside s ources, including competitive
grants. Maintaining a balance in the account ensures that a local match will be
available for grants and then can be allocated once grants are received. Staff will
continue to closely monitor proposed development projects an d revenue collection , and
budget revenues during the 2018 -2020 CIP process to help advance capital projects to
make it easier for people to walk, bike, and take transit in Santa Monica.
Parks and Recreation Development Impact Fee
The City Council adopted ordinance Chapter 9.67 of the Santa Monica Municipal Code
on October 14, 2014 to establish a Parks and Recreation Development Impact Fee to
provide a direct funding source from new residential and commercial development for
the upgrade and/or expansion of parks and recreation facilities needed to accommodate
additional occupants of the new developments.
The schedule of the fees for FY 2015 -16 were:
In FY 2015 -16,
$305,285.19 in revenues
were collected and deposited into the Parks and Recreation Development Impact Fee
Project Fee
Single Family Residential $7,809.34 per unit
Multi -Family Residential - Studio/1
Bedroom $4,231.93 per unit
Multi -Family Residential - 2+
Bedrooms $6,816.30 per unit
Retail $1.52 per square foot
Office $2.36 per squ are foot
Medical Office $1.29 per square foot
Lodging $3.18 per square foot
Industrial $1.33 per square foot
9 of 12
Special Reve nue Source Fund Account 4.370334. The revenues collected in FY 2015 -
16 were added to the prior year Special Revenue Source Fund Account 4.370334
balance of $8,276.00. The ending balance as of June 30, 2016 for Special Revenue
Source Fund Account 4.370334 totaled $313,561.19. No expenditures were made
during the fiscal year. Staff anticipates utilizing the fund balance in FY 2018 -19 as a
partial funding source for construction of the Airport Park Expansion project.
Affordable Housing Commercial Linkage F ee
The City Council adopted ordinance Chapter 9.68 of the Santa Monica Municipal Code
on June 23, 2015 to establish the Affordable Housing Commercial Linkage Fee to
contribute to the creation of affordable housing production or preservation to offset
additional need for affordable housing generated by new commercial development.
The schedule of the fees for FY 2015 -16 were:
Project Fee
Retail $9.97 per square foot
Office $11.46 per square foot
Hotel/Lodging $3.14 per square foot
Hospital $6.28 per square foot
Industrial $7.70 per square foot
Creative Office $9.81 per square foot
Medical Office $7.05 per square foot
Institutional $10.46 per square foot
In FY 2015 -16, $567,289.43 in revenues were collected and interest totaling $776.10
were deposited into the Affordable Housing Commercial Linkage Fee Special Revenue
Source Fund Account 4.365112. The revenues collected in FY 2015 -16 were added to
the prio r year Special Revenue Source Fund Account 4.365112 balance of $21,051.91.
The ending balance as of June 30, 2016 for Special Revenue Source Fund Account
4.365112 totaled $589,117.44. No expenditures were made during the fiscal year. As
of June 30, 2016, sufficient Affordable Housing Commercial Linkage Fee funds have not
10 of 12
been accumulated to complete construction of eligible public improvements. Staff will
continue to closely monitor proposed development projects and revenue collection.
Water Demand Miti gation Fee
The City Council adopted ordinance Chapter 7.16.050 of the Santa Monica Municipal
Code on March 19, 1991 to establish the Water Demand Mitigation Fee. The Water
Demand Mitigation Fee is a one -time fee the City charges new development to mitigate
the total daily water consumption rate projected for the development. The total daily
water demand for the project is calculated using standard water demand factors which
have been developed by City staff. The Water Demand Mitigation Fee is set at $3.00
for each gallon of daily water demand that must be mitigated. The fee is required
whenever a new single -family residence is constructed or addition of 50% or more to
existing square footage; for construction of a new multi -family building or addition of
new units; for construction of a new non -residential building or whenever there is a
change of use, change or addition to new plumbing fixtures, addition of restaurant
seating, or addition of square footage.
The schedule of the fees for FY 2015 -16 were:
In FY 2015 -16, $433,427.65 in revenues were collected and deposited into the fund
Project Fee
Single -Family $990.00
Multi -Family (condominium fees same as apartments):
Studio/Single Apartment: $315.00
1 Bedroom Apartment: $375.00
2 Bedroom Apartment: $570.00
3 Bedroom Apartment: $750.00
Duplex (2 Apartments): $900.00
Non -Residential:
To be determined by the Civil
Engineering Plan Checker
11 of 12
balance account reserved for Water Demand Mitigation Fee revenues 25.335018. The
revenues c ollected in FY 2015 -16 were added to the prior year account 25.335018
balance of $3,638,839.00 . In FY 2015 -16, $301,375.00 was spent on the Irrigation
Controller Replacement project. The purchase of Calsense smart irrigation controllers
replaced old irrig ation technology at various park and landscape locations citywide. The
Calsense smart irrigation controllers, including component parts, were purchased to
help increase the City’s water delivery efficiency and staff’s ability to monitor irrigation
performa nce, make adjustments remotely and create real time reports related to water
use. Additionally, $59,240 was spent on City landscape and irrigation supplies ($45K)
and plumbing fixture retrofits at City facilities ($14K). The ending balance as of June
30, 2016 for account 25.335018 totaled $3,711,651.65 .
Staff has identified several projects that will utilize the ending fund balance amount at
June 30, 2016.
Several facility upgrades, including retrofitting restrooms at City Hall and
replacing faucets in the Public Safety Facility building, are scheduled for FY
2016 -17 with an estimated cost of $30,308.
In October 2016, in support of meeting Living Building Challenge requirements,
an exploratory boring and well construction project was completed on the we st
side of City Hall to supply the new City Services Building with potable water at a
cost of $284,591.
On September 8, 2015, Council awarded Southwest Environmental a $1,999,000
contract to retrofit 4,312 toilets as part of the toilet direct installation program for
multi -family properties. Of that total amount, $857,303 will be paid with Water
Demand Mitigation funds and the remainder from Bay Saver Fee funds. On
September 13, 2016, Council authorized $849,000 for water audits and retrofits
at Santa Moni ca Malibu Unified School District sites within the city.
Public landscape projects include improvements to the irrigation system at
Woodlawn Cemetery, to be bid in FY2016 -17 with an estimated cost of $60,561 .
Other landscape projects include the purchas e of additional Calsense smart
controllers and water efficient rotary nozzles in the amount of $238,326 , and a n
additional $449,052 for landscape and irrigation conversions. The latter
represents the second phase of conversions. On June 14, 2016, Council
a warded a $700,000 contract to Clean Cut Landscape, Inc. to furnish material
and labor for the first phase of the landscape and irrigation conversion project at
39 sites citywide. The project will remove 33,627 estimated square feet (.8 acres)
of turf and r educe water use at these 39 sites by roughly 2.4 million gallons a
12 of 12
year. Work began in September 2016. In total, the two phases of landscape and
irrigation conversions is estimated to cost $1,149,052.
Finally, staff would like to initiate the planning and design of water efficient
landscaping and an irrigation system for the San Vicente Blvd. medians, and
$242,511 is available to commit to that project.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared By: Stephanie Manglaras, Accounting Manager
Approved
Forwarded to Council
Attachments:
A. AB1600 Reporting - Affordable Housing Commercial Linkage Fee
B. AB1600 Reporting - Childcare Linkage
C. AB1600 Report ing - Parks and Rec
D. AB1600 Reporting - Transportation Impact Fee
E. AB1600 Reporting - Water Demand Mitigation Fee
F. AB1600 Reporting - Water Demand Mitigation Errata Sheet
City of Santa Monica
AB1600 Report
Fiscal Year Ended June 30, 2016
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Project Fee
Retail $9.97 per square foot
Office $11.46 per square foot
Hotel/Lodging $3.14 per square foot
Hospital $6.28 per square foot
Industrial $7.70 per square foot
Creative Office $9.81 per square foot
Medical Office $7.05 per square foot
Institutional $10.46 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES TOTAL FUND BALANCE
FY2015-2016 21,051.91 567,289.43 776.10 589,117.44
No expenditures were made during the fiscal year.
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
(G) A description of each interfund 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 interfund 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.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No construction of public improvements have been identified. The City has not determined sufficient funds have been collected.
Affordable Housing Commercial Linkage Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make
available to the public the following information for the fiscal year:
(E) 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.
F) 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.
Affordable Housing Commercial Linkage Fee - A fee paid to the City by an applicant for approval of certain development projects, to contribute to the creation
of affordable housing production or preservation to offset additional need for affordable housing generated by new commercial development.
City of Santa Monica
AB1600 Report
Fiscal Year Ended June 30, 2016
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Project Fee
Residential $142.39 per unit
Hotel $3.39 per square foot
Retail $4.84 per square foot
Office $6.76 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE
FY2015-2016 730,897.74 1,740,158.96 10,537.42 2,481,594.12
No expenditures were made during the fiscal year.
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
F) 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.
(G) A description of each interfund 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 interfund 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.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
We expect construction of the Early Childhood Education Center (ECEC) will begin in Summer 2017.
Child Care Linkage Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make
available to the public the following information for the fiscal year:
Child Care Linkage Fee - The purpose of the Child Care Linkage Fee imposed and collected on development of commercial projects adding floor area of at
least 7,500 square feet or multi-family residential projects development within the City since fiscal year 2011/2012 is to fund property acquisition, development,
and construction of child care facilities in order to create new child care spaces.
(E) 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.
City of Santa Monica
AB1600 Report
Fiscal Year Ended June 30, 2016
Additional Information is being provided regarding this fee:
(1) Identification of the purpose to which the reportable fees are to be put.
(2) Demonstration of a reasonable relationship between the reportable fees and the purposes for which they are charged.
(3) Identification of all City sources and amounts of funding to complete financing of the projects as identified by the City.
(4) Identification of the approximate dates on which the funding referred to in item C is expected to be deposited into the appropriate account or fund.
There is a reasonable relationship between new development upon which the Child Care Linkage Fees are charged and the need to address the increased
demand for childcare within the City. In November 2005, Keyser Marston Associates, Inc., prepared a study that analyzed the linkages between child care
demand and new development. The study focused on the relationships between the construction of new buildings and resulting job growth, new employees
with children age 5 or under needing child care that can be met at or near the workplace, the demand for child care spaces with the per square foot building
area of new construction, and the costs to build child care facilities prorated in proportion to the demand generated by new construction type. The study found
that new development which does not include or contribute toward the cost of child care facilities will only serve to further exacerbate a shortage of child care
spaces. Furthermore, the Child Care Linkage Fees charged will be used to fund eligible projects.
Project Child Care Linkage Fees
The purpose of the Child Care Linkage Fee imposed and collected on development of commercial projects adding floor area of at least 7,500 square feet or
multi-family residential projects development within the City since fiscal year 2011/2012 is to fund property acquisition, development, and construction of child
care facilities in order to create new child care spaces.
Funds Available and Authorized by Council Funds Available and Authorized by Council 4062 - Early Childhood Education Center
(ECEC)
Local Funds
$5,563,000 $1,098,598 4062 - Early Childhood Education Center
(ECEC)
Project Child Care Linkage Fees Local Funds
City of Santa Monica
AB1600 Report
Fiscal Year Ended June 30, 2016
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Project Fee
Single Family Residential $7,809.34 per unit
Multi-Family Residential -
Studio/1 Bedroom $4,231.93 per unit
Multi-Family Residential -
2+ Bedrooms $6,816.30 per unit
Retail $1.52 per square foot
Office $2.36 per square foot
Medical Office $1.29 per square foot
Lodging $3.18 per square foot
Industrial $1.33 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES TOTAL FUND BALANCE
FY2015-2016 8,276.00 305,285.19 313,561.19
No expenditures were made during the fiscal year.
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
(G) A description of each interfund 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 interfund 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.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No construction of public improvements have been identified. The City has not determined sufficient funds have been collected.
Parks and Recreation Development Impact Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make
available to the public the following information for the fiscal year:
(E) 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.
F) 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.
Parks and Recreation Development Impact Fee - The purpose of the fee, is to provide a direct funding source from new residential and commercial
development to be used solely for the acquisition and development of open space, parkland, and recreation facilities to meet demand generated by occupants
and users of the new development.
City of Santa Monica
AB1600 Report
Fiscal Year Ended June 30, 2016
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Project Fee
Single Family, Area 1 $8,231.11 per unit
Single Family, Area 2 $8,447.72 per unit
Multi-Family, Area 1 $2,815.91 per unit
Multi-Family, Area 2 $3,574.04 per unit
Multi-Family, Area 3 $2,815.91 per unit
Retail, Area 1 $22.74 per square foot
Retail, Area 2 $32.60 per square foot
Office, Area 1 $10.51 per square foot
Office, Area 2 $11.70 per square foot
Medical Office, Area 1 $30.43 per square foot
Medical Office, Area 2 $32.27 per square foot
Hospital, Area 1 $0 per square foot
Hospital, Area 2 $15.92 per square foot
Lodging, Area 1 $3.90 per square foot
Lodging, Area 2 $3.90 per square foot
Industrial, Area 1 $1.30 per square foot
Industrial, Area 2 $1.41 per square foot
Auto Sales and Display
Areas, Area 1 $1.30 per square foot
Auto Sales and Display
Areas, Area 2 $1.41 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES TOTAL FUND BALANCE
FY2015-2016 564,263.54 2,890,960.62 3,455,224.16
No expenditures were made during the fiscal year.
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
(G) A description of each interfund 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 interfund 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.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No construction of public improvements have been identified. The City has not determined sufficient funds have been collected.
Transportation Impact Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make
available to the public the following information for the fiscal year:
(E) 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.
F) 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.
Non-Residential (sq. ft.)
Residential (dwelling unit)
Transportation Impact Fee - The City Council adopted an ordinance on February 26, 2013 which established a Transportation Impact Fee for new
development and intensified land uses that will fund transportation improvements such as new sidewalks, crosswalks, traffic signal upgrades, transit, and
bicycle facilities that are necessitated by the new trips associated with land use change. The fees are based on residential units or commercial square footage.
The fee is charged prior to issuance of building permits, unless state law requires the City to accept later fee payment. The Transportation Impact Fee reflects
the costs associated with transportation improvements and the amount of new auto trips that can be attributed to land use changes.
City of Santa Monica
AB1600 Report
Fiscal Year Ended June 30, 2016
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Project Fee
Single-Family $990.00
Studio/Single Apartment:$315.00
1 Bedroom Apartment:$375.00
2 Bedroom Apartment:$570.00
3 Bedroom Apartment:$750.00
Duplex (2 Apartments):$900.00
Non-Residential:
To be determined by the
Civil Engineering Plan
Checker
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES TOTAL FUND BALANCE
FY2015-2016 4,722,547.35 433,427.65 304,875.00 4,851,100.00
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
The turf and irrigation improvement project is scheduled to begin in September 2016. City facility upgrades and the purchase of additional smart irrigation
controllers are scheduled for fiscal year 16-17. The San Vicente median landscape renovation and irrigation retrofit project is scheduled to begin July 2017.
Water Demand Mitigation Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make
available to the public the following information for the fiscal year:
(E) 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.
F) 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.
The Water Demand Mitigation Fee is a one-time fee the City charges new development to mitigate the total daily water consumption rate projected for the
development. The total daily water demand for the project is calculated using standard water demand factors which have been developed by City staff. The
water demand mitigation fee is set at $3.00 for each gallon of daily water demand which must be mitigated.
This fee is required when:
• Single-Family Residence -- for construction of a new residence or whenever adding 50% or greater to the square footage.
• Multi-Family -- for construction of a new building or whenever new units are added.
• Non-Residential -- for construction of a new building or whenever there is a change of use, changing or adding plumbing fixtures, or adding restaurant seats
or square footage.
Multi-Family (condominium fees same as apartments):
Public Landscape purchased Calsense smart irrigation controllers for City facilities. 100% of the irrigation controllers were funded with water demand
mitigation fees.
(G) A description of each interfund 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 interfund 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.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
City of Santa Monica
AB1600 Report
Fiscal Year Ended June 30, 2016
Additional Information is being provided regarding this fee:
(1) Identification of the purpose to which the reportable fees are to be put.
(2) Demonstration of a reasonable relationship between the reportable fees and the purposes for which they are charged.
(3) Identification of all City sources and amounts of funding to complete financing of the projects as identified by the City.
(4) Identification of the approximate dates on which the funding referred to in item C is expected to be deposited into the appropriate account or fund.
San Vicente Median Funds Available Fiscal Year 2016-2017
Smart Irrigation Controllers Funds Available NA
Landscape and Irrigation Conversion Funds Available NA
City Facility Upgrades Funds Available NA
Public Landscape Funds Available NA
San Vicente Median $3,989,531 $6,010,469
Project Water Demand Mitigation Fees Local Funds
$28,625 $0
Landscape and Irrigation Conversion $700,000 $0
The Water Demand Mitigation Fee is a one-time fee the City charges new development to mitigate the total daily water consumption rate projected for the
development. The City intends to use the reportable fees for various City facility upgrades, public landscaping and irrigation controllers, and the San Vicente
median landscape renovation and irrigation retrofit, which covers approximately 7.5 acres of open space.
There is a reasonable relationship between new development upon which the Water Demand Mitigation Fees are charged and the need to address the
increased demand for water within the City. New Single-Family, Multi-Family, or other Non-Residential development in the City results in a higher demand for
water and leads to an increase in the total water consumption rate for the City. The Water Demand Mitigation Fee collected from these types of development
is used to fund facility upgrades, installation of low water demand landscape and water efficient irrigation systems to offset this increased usage by reducing
daily water consumption for the City.
Project Water Demand Mitigation Fees Local Funds (Approx.)
City Facility Upgrades $30,308 $0
Public Landscape $102,636 $0
Smart Irrigation Controllers
City of Santa Monica
AB1600 Report
Fiscal Year Ended June 30, 2016
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Project Fee
Single-Family $990.00
Studio/Single Apartment:$315.00
1 Bedroom Apartment:$375.00
2 Bedroom Apartment:$570.00
3 Bedroom Apartment:$750.00
Duplex (2 Apartments):$900.00
Non-Residential:
To be determined by the
Civil Engineering Plan
Checker
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES TOTAL FUND BALANCE
FY2015-2016 3,638,839.00 433,427.65 360,615.00 3,711,651.65
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
Water Demand Mitigation Fee ERRATA SHEET
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year, make
available to the public the following information for the fiscal year:
The Water Demand Mitigation Fee is a one-time fee the City charges new development to mitigate the total daily water consumption rate projected for the
development. The total daily water demand for the project is calculated using standard water demand factors which have been developed by City staff. The
water demand mitigation fee is set at $3.00 for each gallon of daily water demand which must be mitigated.
This fee is required when:
• Single-Family Residence -- for construction of a new residence or whenever adding 50% or greater to the square footage.
• Multi-Family -- for construction of a new building or whenever new units are added.
• Non-Residential -- for construction of a new building or whenever there is a change of use, changing or adding plumbing fixtures, or adding restaurant seats
or square footage.
Multi-Family (condominium fees same as apartments):
(E) 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.
Public Landscape purchased Calsense smart irrigation controllers for City facilities. 100% of the irrigation controllers were funded with water demand
mitigation fees.
F) 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.
City facility upgrades, Woodlawn Cemetery Irrigation Retrofit, Smart Irrigation Controllers installation, Landscape and Irrigation Conversions, Rotary Nozzle
Retrofits, Toilet Direct Installation Project, SMMUSD Audits and Retrofits, and the City Services Building Production Well are scheduled for fiscal year 16-17.
The San Vicente Medians Landscape Plan/Design for Water Efficient Landscape and Irrigation System project is scheduled to begin July 2017.
(G) A description of each interfund 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 interfund 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.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
Revisions were made upon further review to the following sections of the Water Demand Mitigation Fee AB1600 Report that was posted on
December 27, 2016. Fields containing revisions are highlighted yellow.
City of Santa Monica
AB1600 Report
Fiscal Year Ended June 30, 2016
Additional Information is being provided regarding this fee:
(1) Identification of the purpose to which the reportable fees are to be put.
(2) Demonstration of a reasonable relationship between the reportable fees and the purposes for which they are charged.
(3) Identification of all City sources and amounts of funding to complete financing of the projects as identified by the City.
(4) Identification of the approximate dates on which the funding referred to in item C is expected to be deposited into the appropriate account or fund.
The Water Demand Mitigation Fee is a one-time fee the City charges new development to mitigate the total daily water consumption rate projected for the
development. The City intends to use the reportable fees for various water conservation public projects including City facility upgrades, Woodlawn Cemetery
Irrigation upgrades, public landscaping and irrigation controllers, toilet direct installation program, audits and retrofits at Santa Monica Malibu Unified School
District and the San Vicente Medians Landscape Plan/Design for Water Efficient Landscape and Irrigation System project, which covers approximately 7.5
acres of open space.
There is a reasonable relationship between new development upon which the Water Demand Mitigation Fees are charged and the need to address the
increased demand for water within the City. New Single-Family, Multi-Family, or other Non-Residential development in the City results in a higher demand for
water and leads to an increase in the total water consumption rate for the City. The Water Demand Mitigation Fee collected from these types of development
is used to fund public projects including plumbing fixture retrofits, installation of low water demand landscape and water efficient irrigation systems,
rainwater/stormwater and water production equipment to offset this increased usage by reducing daily water consumption for the City and its impact on the
City's water production facilities.
Project Water Demand Mitigation Fees Local Funds (Approx.)
City Facility Upgrades $30,308 $0
Woodlawn Cemetery Irrigation Retrofit $60,561 $0
Smart Irrigation Controllers and Nozzles $238,326 $0
Landscape and Irrigation Conversion $1,149,052 $0
San Vicente Medians Landscape
Plan/Design for Water Efficient Landscape
and Irrigation System
$242,511 $0
Toilet Direct Installation Project $857,303 $0
SMMUSD Audits and Retrofits $849,000 $0
City Services Building Production Well $284,591 $0
Total $3,711,652 $0
Project Water Demand Mitigation Fees Local Funds
City Facility Upgrades Funds Available NA
Woodlawn Cemetery Irrigation Retrofit Funds Available NA
Smart Irrigation Controllers and Nozzles Funds Available NA
City Services Building Production Well Funds Available NA
Toilet Direct Installation Project Funds Available NA
SMMUSD Audits and Retrofits Funds Available NA
Landscape and Irrigation Conversion Funds Available NA
San Vicente Medians Landscape
Plan/Design for Water Efficient Landscape
and Irrigation System
Funds Available NA