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SR 01-08-2019 3E City Council Report City Council Meeting: January 8, 2019 Agenda Item: 3.E 1 of 9 To: Mayor and City Council From: Gigi Decavalles-Hughes, Director, Finance Department, Financial Operations Subject: Annual Reporting of Development Impact Fees Recommended Action Staff recommends that the City Council review and accept the FY 2017-18 Annual Reporting of Development Impact Fees per the Mitigation Fee Act (Government Code 66000-66025) and the FY 2017-18 Childcare Linkage Fee Report per SMMC Section 9.65. Summary Santa Monica collects fees from developers and Council has authorized these fees to be used to help fund community benefits that are directly impacted by new development. The City has used revenues from these fees to make investments in child care, transportation, parks, affordable housing and water consumption. The City can use these funds as grant match to further leverage the ability to deliver larger projects at a lower local cost. This report transmits the attached Annual Report on the status of funds collected from the City’s development impact fees, including investments made in the last year, that qualify to be reported under the Mitigation Fee Act (Government Code 66000-66025) (Attachment A). This Annual Report also provides the required annual reporting for the Child Care Linkage Fee per SMMC Section 9.65.090. Discussion In 1987, Assembly Bill 1600 (AB1600), also known as the California Mitigation Fee Act, codified the legal and procedural parameters for charging development impact fees as set forth in Government Code 66000-66025. A development impact fee is a monetary exaction other than a tax or special assessment that an applicant of an approved development project pays to defray all or a portion of the costs of public facilities related to the project. The Mitigation Fee Act defines “public facilities” broadly to include public 2 of 9 improvements, public services, and community amenities. At the time that a Mitigation Fee is established, the purpose of the fee and its anticipated use must be clearly identified. Per Government Code 66006, collection of these fees requires separate funds or accounts to avoid commingling and requires that information is reported within 180 days from year-end. The City publicly posted the annual Mitigation Fee Act Report, as required by AB1600, on November 30 for the following fees: Childcare 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 Transportation Impact Fee. An analysis of eligible projects resulted in revisions to the Transportation Impact Fee information and an errata sheet was publicly posted on December 18. Per Government Code 66001, the City must also report on unexpended and expended fee amounts, whether committed or uncommitted, for the fifth fiscal year following the first deposit and every five years thereafter. This year, the required five-year reporting only applies to the Transportation Impact Fee (TIF). No interested parties contacted the City in writing to request a mailed notice of meeting time and place to review the Mitigation Fee Act Report. 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. It can take a number of years to accumulate sufficient funds to implement the relatively high-cost projects the City's development impact fees are eligible to fund. Following is a summary of each fee, the current balance, and a description of how funds are being spent: 1. Child Care Linkage Fee – This fee is intended to address the increased demand for child care 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 the construction or establishment of one or more child care 3 of 9 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. Section 9.65.070 of the ordinance establishing the Child Care Linkage Fee specifies that funds collected in the Child Care Linkage Fee Reserve Account shall be restricted to costs related to property acquisition, development, and construction 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. On June 14, 2016, as part of the Capital Improvement Program (CIP) Budget Adoption, Council approved usage of Child Care Linkage Fee funds in addition to the General Fund dollars previously appropriated towards the construction of the Early Childhood Lab School (ECLS). The ECLS is a joint project between Santa Monica College and the City of Santa Monica. Construction of the ECLS began in spring 2018 and is expected to be completed by August 2020. The City has approved a financial contribution of $6,661,598 to the ECLS which currently includes $1,098,598 (approximately 16%) in Child Care Linkage Fee funds. When Council first approved the City’s financial contribution to the ECLS with the FY 2006-07 budget, the City’s contribution was expected to come from Redevelopment Agency funding. Upon dissolution of the Redevelopment Agency, the City agreed to fund its financial contribution to the ECLS using General Fund CIP dollars, including using Childcare Linkage Fee funds, so the project could move forward. Specifically, $1,098,598 of Child Care Linkage Fee funds and $1,121,935 of General Funds were incurred in FY 2017-18 for ECLS construction costs. Staff are now looking at ways to apply additional Childcare Linkage Fee Funds towards the project to reduce the General Fund’s obligation and will return to Council with a recommendation with the 2019-21 budget if this is possible. 4 of 9 Beginning Balance Fees Collected Interest Earned Expenditures Ending Balance $2,614,156 $1,271,065 $20,608 $1,098,598 $2,807,231 2. Transportation Impact Fee – This fee is collected on new development and intensified land uses and is used to fund transportation improvements, such as sidewalks, crossing improvements, traffic signal upgrades, transit, and bicycle facilities. Funds are frequently leveraged as grant match such as Safe Streets for 17th Street and Wilshire Blvd Safety Study. Grant projects have longer delivery times, but increase the number and size of improvements possible from the fees. Some fees are temporarily held to be ready for future grant opportunities. Grant matching was assumed in the fee study. The fees are based on residential units or commercial square footage and are 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. Beginning Balance Fees Collected Interest Earned Expenditures Ending Balance $5,880,958 $2,136,138 $60,389 $205,506 $7,871,979 In FY 2017-18, $105,917 of available TIF funds were spent on physical changes near four neighborhood schools to make it easier for students to walk and bike. This included the design and installation of reduced speed limits, and enhanced crosswalk and roadway striping. Additionally, $99,589 of available TIF funds were spent on engineering design services that are necessary for construction of phase I of the Lincoln Boulevard Neighborhood Corridor. As of June 30, 2018, $6,577,250 of the $7,871,979 fund balance is committed to nine projects that will deliver safety and connection improvements. The projects are programmed in 5 of 9 the Capital Improvement Budget and are underway in various stages of preliminary design, outreach, construction documentation, and/or grant approval. Additional TIF funding information is reported this year to satisfy the five year reporting requirements of Government Code Section 66001(d). The purpose of the Transportation Impact Fee is to ensure that new development pays its fair share of the costs of providing the transportation network infrastructure necessary to implement the General Plan Circulation Element goals including the no net increase in vehicle trips originating or ending within the City during the PM peak hour. The Fee is based on a nexus study that outlines the reasonable relationship between new development upon which the Transportation Impact Fees are charged and the fee-funded projects needed to mitigate the citywide effects of new automobile trips associated with new development. The Transportation Impact Fee collected from new development is designed to address projected growth and to help achieve the goal of no net increase in PM peak hour vehicle trips. Projects funded by the fee include completion of the sidewalk network, enhanced pedestrian crossings along major boulevards, striping and signage of new bike lanes, bike paths, bike boulevards, bike facilities, and installation of new bus pads, bus benches and transit only lanes. Funds are also crucial for project development to make them ready for grant funding, such as preliminary design and outreach. Upcoming projects utilizing TIF funds are summarized in the table below, and more information is available in the FY 2017-18 Annual Report. Project TIF Fee Fund Allocation Local Funds* Grant Funds (various) Michigan Ave Greenway – 20th St Connection Grant funded project. Project received Caltrans Environmental Approval and Authorization to begin in spring 2020. $177,000 $70,000 $987,000 17th St/SMC/Expo Bike Path $197,250 $3,388,670 $1,927,000 6 of 9 In design phase. Construction is anticipated to begin in January 2020. Pedestrian Improvements at 4 Schools Project Phase 1 striping installed. Civil improvements currently in design phase, with construction anticipated to begin in May 2019. $765,000 $795,000 $0 Wilshire Blvd Safety Enhancement Study Grant funded project awarded in January 2018. Study to be complete by May 2020. $60,000 $0 $450,000 Lincoln Neighborhood Corridor Project Currently in design phase, construction planned for spring 2019. $2,913,000 $0 $0 Pico Blvd Pedestrian Safety Improvements Grant funded project, design phase to begin in March 2019. $310,000 $0 $943,000 Vision Zero & Mobility Project Delivery On-call consultant team approved by Council, contract execution expected in February. $1,600,000 $0 $0 Pico Blvd Safety & Crossing Study (28 St Area) Request for proposals being prepared, study anticipated to begin in May 2019. $300,000 $0 $0 Pearl St Preliminary Design Project budgeted and scheduled for design to begin after July 2019 (FY19-20). $255,000 $0 $0 TOTAL $6,577,250 $4,253,670 $4,307,000 *Fund sources include Prop A, Prop C, Measure M, Measure R and General Fund. 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. In FY 2017- 18, no expenditures were made. As of June 30, 2018, the balance on hand for this fee totaled $1,858,701. Staff anticipates utilizing a portion of the fund balance to support completion of the construction of new Clover Park restrooms as approved in the FY 2016-18 CIP budget. The remaining fund balance will support one or more currently unfunded park projects, such as construction of the Memorial Park and Airport Park expansion projects, or other projects identified through the Parks & Recreation Master Plan Update process. Beginning Balance Fees Collected Interest Earned Expenditures Ending Balance $368,472 $1,482,033 $8,196 $0 $1,858,701 7 of 9 4. Affordable Housing Commercial Linkage Fee – The City adopted Charter 9.68 of the Santa Monica Municipal Code on June 23, 2015 to contribute to the creation of affordable housing production and preservation to offset the additional need for affordable housing generated by new commercial development. In FY 2017- 18, $49,758 was distributed to assist in the financing of the acquisition and rehabilitation loan for 12 affordable housing units at 2621, 2622, and 2627 26th Street, leaving a balance for this fee as of June 30, 2018 of $509,344. Beginning Balance Fees Collected Interest Earned Expenditures Ending Balance $52,437 $505,674 $991 $49,758 $509,344 5. Water Demand Mitigation Fee – The City Council adopted ordinance Chapter 7.16.050 of the Santa Monica Municipal Code on March 19, 1991 to establish a one-time fee that the City charges new development to mitigate the total daily water consumption rate projected for the development. 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 there is an 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. In FY 2017-18, $452,840 was used on turf removal and drip irrigation systems, Calsense smart irrigation controllers, and other landscape improvements at various City parks, medians Woodlawn Cemetery, and public right of ways. Additionally, $713,894 was spent on the Santa Monica low-income housing multi- family direct toilet install program for various locations throughout Santa Monica. At the end of FY 2017-18, a balance of $1,949, 570 was still available to program. 8 of 9 Beginning Balance Fees Collected Interest Earned Expenditures Ending Balance $2,868,085 $248,219 $0 $1,166,734 $1,949,570 On July 1, 2017, the Water Neutrality Fee replaced the Water Demand Mitigation Fee. The City will continue to collect Water Demand Mitigation revenues for permit applications submitted prior to July 1, 2017 and will continue to report on it until all funds are expended. Past Council Actions Meeting Date Description 3/19/91 (Attachment B) City Council adopted ordinance Chapter 7.16.050 of the Santa Monica Municipal Code on March 19, 1991 to establish a one-time fee that the City charges new development to mitigate the total daily water consumption rate projected for the development. 12/5/06 (Attachment C) Council adopted ordinance Chapter 9.65 of the Santa Monica Municipal Code to establish a Childcare Linkage Fee program. The ordinance requires an annual report to City Council within 180 days after the last day of each fiscal year. 3/12/13 (Attachment D) City Council adopted ordinance Chapter 9.66 of the Santa Monica Municipal Code 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. 10/14/14 (Attachment E) City Council adopted ordinance Chapter 9.67 of the Santa Monica Municipal Code 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. 6/23/15 (Attachment F) City Council adopted Chapter 9.68 of the Santa Monica Municipal Code to establish the Affordable Housing Commercial Linkage Fee to contribute to the creation of affordable housing production and preservation to offset the additional need for affordable housing generated by new commercial development. Financial Impacts and Budget Actions 9 of 9 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. Development Impact Fees Report B. March 19, 1991 Staff Report (Weblink) C. December 5, 2006 Staff Report (Weblink) D. March 12, 2013 Staff Report (Weblink) E. October 14, 2014 City Council Resolution (Weblink) F. June 23, 2015 Staff Report (Weblink) G. Written Comments City of Santa Monica Development Impact Fees Report pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2018 (A) A brief description of the type of fee in the account or fund. (B) The amount of the fee. Project Fee Residential $150.81 per unit Hotel $3.59 per square foot Retail $5.12 per square foot Office $7.16 per square foot (C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned. FISCAL YEAR BEGINNING FUND BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE FY 2017-18 2,614,156$ 1,271,065 20,608 1,098,598 2,807,231$ $1,098,598 of Child Care Linkage Fee funds were incurred for the use in the construction of the Early Childhood Lab School (ECLS). 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. Construction of the Early Childhood Lab School (ECLS) began in Spring 2018 and is expected to be completed by August 2020. 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. Note: The percentage will be reported upon completion of the project/s. City of Santa Monica Development Impact Fees Report pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2018 (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 $8,586.70 per unit Single Family, Area 2 $8,812.66 per unit Multi-Family, Area 1 $2,937.55 per unit Multi-Family, Area 2 $3,728.43 per unit Multi-Family, Area 3 $2,937.55 per unit Retail, Area 1 $23.73 per square foot Retail, Area 2 $34.01 per square foot Office, Area 1 $10.96 per square foot Office, Area 2 $12.20 per square foot Medical Office, Area 1 $31.75 per square foot Medical Office, Area 2 $33.67 per square foot Hospital, Area 1 $0 per square foot Hospital, Area 2 $16.61 per square foot Lodging, Area 1 $4.07 per square foot Lodging, Area 2 $4.07 per square foot Industrial, Area 1 $1.36 per square foot Industrial, Area 2 $1.47 per square foot Auto Sales and Display Areas, Area 1 $1.36 per square foot Auto Sales and Display Areas, Area 2 $1.47 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 FY2017-2018 5,880,958 2,136,138 60,389 205,506 7,871,979 Michigan Ave Greenway 20th St Bike Connection is a grant-funded project. Project received Caltrans Environmental Approval and Authorization to begin Design in June 2018. Construction is anticipated to begin in Spring 2020. The 17th St/SMC/Expo Bike Path project is currently in design phase. Construction is anticipated to begin in January 2020. The Pedestrian Improvements at Four Schools project is currently in the design phase, with construction anticipated to begin in May 2019. The Edison Safe Routes to School Project began construction in June 2018. The Wilshire Blvd Corridor Safety Enhancement Study is a grant funded project that was awarded in January 2018. The study will be completed by May 2020. The Lincoln Neighborhood Corridor project is currently in the design phase. Construction is anticipated to begin in Spring 2019. 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. Note: The percentage will be reported upon completion of the project/s. 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 network improvements such as new sidewalks, crosswalks, traffic signal upgrades, bus stops, transportation demand management, and bicycle facilities that are necessitated by the new trips associated with land use change. The fees are based on a nexus study and calculated using 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 network improvements and the amount of new auto trips that can be attributed to land use changes. $105,917 was expended on the Pedestrian Improvements at Four Schools project. Expenditures included initial sign and striping installation and design costs necessary for construction. $99,589 was expended on the Lincoln Neighborhood Corridor (Phase I) project. Expenditures include engineering design services necessary for construction. City of Santa Monica Development Impact Fees Report pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2018 No interfund transfers or loans were made during the fiscal year from this fund. No refunds were made during the fiscal year. Additional information is being provided regarding this fee to comply with Government Code 66001: (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 purpose 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. Transportation Impact Fee Local Funds Misc. Grant Funds $177,000 $70,000 $987,000 $47,250 $3,432,093 $0 $765,000 $795,000 $0 $60,000 $0 $450,000 $2,913,000 $0 $0 $3,962,250 $4,297,093 $1,437,000 Transportation Impact Fee Local Funds Misc. Grant Funds Funds Available Funds Available 6/30/21 Funds Available Funds Available N/A Funds Available Funds Available N/A Funds Available N/A 6/30/20 Funds Available N/A N/A (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. The purpose of the Transportation Impact Fee is to ensure that new development pays its fair share of the costs of providing the transportation network infrastructure necessary to implement the General Plan Circulation Element goals including the no net increase in vehicle trips originating or ending within the City during the PM peak hour. The Fee is based on a nexus study that outlines the purpose, rationale and structure, including the eligible transportation improvements and demand reduction strategies. Improvements include but are not limited to: sidewalks, car-sharing, bike facilities, transit stops, and mobility centers. The Nexus Study outlines the reasonable relationship between new development upon which the Transportation Impact Fees are charged and the fee-funded projects needed to mitigate the citywide effects of new automobile trips associated with new development. The Transportation Impact Fee collected from new development is designed to address projected growth and to help achieve the goal of no net increase in PM peak hour vehicle trips. Projects funded by the fee include completion of the sidewalk network, enhanced pedestrian crossings along major boulevards, striping and signage of new bike lanes, bike paths, bike boulevards, and installation of new bus pads, bus benches and transit only lanes. Project Michigan Ave Greenway 20th St Bike Connection 17th Street/SMC/Expo Bike Path Connection Pedestrian Improvements at Four Schools Wilshire Blvd Safety Enhancement Study Lincoln Neighborhood Corridor (Phase I) Total Project (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. Michigan Ave Greenway 20th St Bike Connection 17th Street/SMC/Expo Bike Path Connection Pedestrian Improvements at Four Schools Wilshire Blvd Safety Enhancement Study Lincoln Neighborhood Corridor (Phase I) City of Santa Monica Development Impact Fees Report pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2018 Revision were made upon further review to the following sections of the Transportation Impact Fee, Development Impact Fees Report, that was posted on November 30, 2018. Fields containing revisions are highlighted yellow. (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 $8,586.70 per unit Single Family, Area 2 $8,812.66 per unit Multi-Family, Area 1 $2,937.55 per unit Multi-Family, Area 2 $3,728.43 per unit Multi-Family, Area 3 $2,937.55 per unit Retail, Area 1 $23.73 per square foot Retail, Area 2 $34.01 per square foot Office, Area 1 $10.96 per square foot Office, Area 2 $12.20 per square foot Medical Office, Area 1 $31.75 per square foot Medical Office, Area 2 $33.67 per square foot Hospital, Area 1 $0 per square foot Hospital, Area 2 $16.61 per square foot Lodging, Area 1 $4.07 per square foot Lodging, Area 2 $4.07 per square foot Industrial, Area 1 $1.36 per square foot Industrial, Area 2 $1.47 per square foot Auto Sales and Display Areas, Area 1 $1.36 per square foot Auto Sales and Display Areas, Area 2 $1.47 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 FY2017-2018 5,880,958 2,136,138 60,389 205,506 7,871,979 Transportation Impact 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: 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 network improvements such as new sidewalks, crosswalks, traffic signal upgrades, bus stops, transportation demand management, and bicycle facilities that are necessitated by the new trips associated with land use change. The fees are based on a nexus study and calculated using 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 network improvements and the amount of new auto trips that can be attributed to land use changes. Residential (dwelling unit) Non-Residential (sq. ft.) (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. Note: The percentage will be reported upon completion of the project/s. $105,917 was expended on the Pedestrian Improvements at Four Schools project. Expenditures included initial sign and striping installation and design costs necessary for construction. $99,589 was expended on the Lincoln Neighborhood Corridor (Phase I) project. Expenditures include engineering design services necessary for construction. 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. Michigan Ave Greenway 20th St Bike Connection is a grant-funded project. Project received Caltrans Environmental Approval and Authorization to begin Design in June 2018. Construction is anticipated to begin in Spring 2020. The 17th St/SMC/Expo Bike Path project is currently in design phase. Construction is anticipated to begin in January 2020. The Pedestrian Improvements at Four Schools project is currently in the design phase, with construction anticipated to begin in May 2019. The Wilshire Blvd Corridor Safety Enhancement Study is a grant funded project that was awarded in January 2018. The study will be completed by May 2020. The Lincoln Neighborhood Corridor project is currently in the design phase. Construction is anticipated to begin in Spring 2019. The Pico Blvd/SMC Pedestrian Safety Improvements project is currently awaiting grant authorization of funds from Caltrans. The design phase is anticipated to begin in Summer 2019. The Vision Zero & Mobility Project Delivery on-call contract was awarded by the City Council in October 2018. The design phase is anticipated to begin in January 2019. The Pico Blvd/Dorchester Safety Crossing Plan project is anticipated to begin in Spring 2019. The Pearl Street Preliminary Design is anticipated to begin in early 2020. City of Santa Monica Development Impact Fees Report pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2018 No interfund transfers or loans were made during the fiscal year from this fund. No refunds were made during the fiscal year. Additional information is being provided regarding this fee to comply with Government Code 66001: (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 purpose 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. Transportation Impact Fee Local Funds Misc. Grant Funds $177,000 $70,000 $987,000 $197,250 $3,388,670 $1,927,000 $765,000 $795,000 $0 $60,000 $0 $450,000 $2,913,000 $0 $0 $310,000 $0 $943,000 $1,600,000 $0 $0 $300,000 $0 $0 $255,000 $0 $0 $1,274,729 $0 $0 $7,851,979 $4,253,670 $4,307,000 Transportation Impact Fee Local Funds Misc. Grant Funds Funds Available Funds Available 6/30/21 Funds Available Funds Available 6/30/20 Funds Available Funds Available N/A Funds Available N/A 6/30/20 Funds Available N/A N/A Funds Available N/A 06/30/20 Funds Available N/A N/A Funds Available N/A N/A Funds Available N/A N/APearl Street Preliminary Design 17th Street/SMC/Expo Bike Path Connection Pico Blvd/SMC Pedestrian Safety Improvements Pico Blvd/SMC Pedestrian Safety Vision Zero & Mobility Project Delivery Pico Blvd/Dorchester Safety & Crossing Plan Pico Blvd/Dorchester Safety & Crossing Plan Pearl Street Preliminary Design Wilshire Blvd Safety Enhancement Study Funds to be leveraged to secure future grant funding Pedestrian Improvements at Four Schools Lincoln Neighborhood Corridor (Phase I) Wilshire Blvd Safety Enhancement Study Lincoln Neighborhood Corridor (Phase I) Michigan Ave Greenway 20th St Bike Connection 17th Street/SMC/Expo Bike Path Connection (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. Pedestrian Improvements at Four Schools Total (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. Project (H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001. The purpose of the Transportation Impact Fee is to ensure that new development pays its fair share of the costs of providing the transportation network infrastructure necessary to implement the General Plan Circulation Element goals including the no net increase in vehicle trips originating or ending within the City during the PM peak hour. The Fee is based on a nexus study that outlines the purpose, rationale and structure, including the eligible transportation improvements and demand reduction strategies. Improvements include but are not limited to: sidewalks, car-sharing, bike facilities, transit stops, and mobility centers. The Nexus Study outlines the reasonable relationship between new development upon which the Transportation Impact Fees are charged and the fee-funded projects needed to mitigate the citywide effects of new automobile trips associated with new development. The Transportation Impact Fee collected from new development is designed to address projected growth and to help achieve the goal of no net increase in PM peak hour vehicle trips. Projects funded by the fee include completion of the sidewalk network, enhanced pedestrian crossings along major boulevards, striping and signage of new bike lanes, bike paths, bike boulevards, and installation of new bus pads, bus benches and transit only lanes. Project Michigan Ave Greenway 20th St Bike Connection Vision Zero & Mobility Project Delivery City of Santa Monica Development Impact Fees Report pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2018 (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 $8,270.53 per unit Multi-Family Residential - Studio/1 Bedroom $4,481.86 per unit Multi-Family Residential - 2+ Bedrooms $7,218.84 per unit Retail $1.61 per square foot Office $2.50 per square foot Medical Office $1.38 per square foot Lodging $3.37 per square foot Industrial $1.41 per square foot (C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned. FISCAL YEAR BEGINNING FUND BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE FY 2017-18 368,472$ 1,482,033 8,196 0 1,858,701$ No expenditures were made during the fiscal year. Construction is underway on two replacement restroom buildings at Clover Park. 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. 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. Note: The percentage will be reported upon completion of the project/s. 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 Development Impact Fees Report pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2018 (A) A brief description of the type of fee in the account or fund. (B) The amount of the fee. Project Fee Retail $10.56 per square foot Office $12.14 per square foot Hotel/Lodging $3.33 per square foot Hospital $6.66 per square foot Industrial $8.16 per square foot Creative Office $10.39 per square foot Medical Office $7.46 per square foot Institutional $11.08 per square foot (C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned. FISCAL YEAR BEGINNING FUND BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE FY2017-2018 52,437$ 505,674 991 49,758 509,344$ 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. Sufficient funds were available to assist in the financing of the acquisition and rehabilitation loan beginning May 2017. 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. Note: The percentage will be reported upon completion of the project/s. 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. $49,758 was disbursed to assist in the financing of the acquisition and rehabilitation loan for 12 affordable housing units at 2621, 2622, and 2627 26th Street. City of Santa Monica Development Impact Fees Report pursuant to the Mitigation Fee Act Fiscal Year Ended June 30, 2018 (A) A brief description of the type of fee in the account or fund. seats or square footage. (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): $900.00 Non-Residential: To be determined by the Civil Engineering Plan Checker (C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned. FISCAL YEAR BEGINNING FUND BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE FY2017-2018 2,868,085$ 248,219 0 1,166,734 1,949,570$ 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. The Irrigation Controller Replacement project approved in FY2017-18 will be completed in Spring 2019. Given the available resources for public improvements, additional eligible projects requesting Water Demand Mitigation Fee revenues will be considered in FY2018-19 to be included in the FY2019-20 Exception-Based Capital Improvement Program Budget process. (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. $452,840 was used on turf removals & drip irrigation systems (Clean Cut Landscape), Calsense smart irrigation controllers and other landscape improvements at various City parks, medians, Woodlawn cemetery and public right of ways. 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: The Water Demand Mitigation Fee - 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. Effective, July 1, 2017, the Water Demand Mitigation Fee was replaced with the Water Neutrality Fee. The City will continue to collect Water Demand Mitigation revenues for permit applications submitted prior to July 1, 2017. 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 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. Note: The percentage will be reported upon completion of the project/s. $713,894 was utilized on the Santa Monica low-income housing multi-family direct toilet install program at various locations (Southwest Environmental). (H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001. 1 Vernice Hankins From:The SEO Doctors <theseodoctors@gmail.com> Sent:Tuesday, January 8, 2019 11:02 AM To:Clerk Mailbox Subject:1/8/19 - Item 3E - Report, Development Impact Fees (3)Parks and Recreation Impact Fees I'm glad to see you guys listened and are rebuilding the bathrooms at Clover Park ! Those really needed to be cleaned up . It was nasty. Thank you ! :) General I think these fees and their expenditures look appropriate. Good job ! Now we just need to make sure we're keeping it clean, and not over-developing. Korie Schmidt The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location. 2442 Barry Ave. Los Angeles, Ca 90064 (310)600-2278 TheSEODoctors@gmail.com www.TheSEODoctors.com The linked image cannot be displayed. The file may have been mov ed, renamed, or deleted. Verify that the link points to the correct file and location. The linked image cannot be displayed. The file may have been mov ed, renamed, or deleted. Verify that the link points to the correct file and location. The linked image cannot be displayed. The file may have been mov ed, renamed, or deleted. Verify that the link points to the correct file and location. This electronic message contains information from The SEO Doctors, which may be privileged or confidential. This message and the information it contains is intended solely for use by the individual(s) or entity named above. If you are not the intended recipient be aware that any disclosure, copying, distribution, use of or benefit from the contents of this information (without the express prior written consent of its author) is prohibited. If you have received this electronic message in error, please notify us by telephone or email immediately. Item 3-E 01/08/2019 1 of 1 Item 3-E 01/08/2019