SR 12-12-2023 5B
City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 5.B
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Financial Operations
Subject: Annual Reporting of Development Impact Fees and Adoption of
Transportation Impact Fee Resolution
Recommended Action
Staff recommends that the City Council:
1. Review and accept the FY 2022-23 Annual Reporting of Development Impact
Fees per the Mitigation Fee Act (Government Code 66000-66025) and the FY
2022-23 Child Care Linkage Fee Report per SMMC Chapter 9.65;
2. Approve and adopt the proposed resolution making the necessary five-year
findings for the Transportation Impact Fee; and
3. Adopt a finding of no possibility of significant effect pursuant to Section
15061(b)(3) (Common Sense Exemption) of the California Environmental Quality
Act (CEQA) Guidelines.
Summary
Santa Monica collects Council authorized fees from developers to fund investments in
child care, transportation, parks, affordable housing, and water conservation. The City
also uses these funds to meet the City’s match requirement when seeking grant funding
that further offsets costs for City projects.
This report transmits the attached Development Impact Fees 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
sections 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.
Government Code 66001(d) requires the City Council to make findings every five years
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after a development fee is established. Only the Transportation Impact Fee is due to be
reported this year under the five-year requirement. Staff is requesting that the City
Council approve and adopt the proposed resolution making the necessary findings for
the Transportation Impact Fee.
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 sections 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 improvements, public services, and community amenities.
At the time that a development impact fee is established, the purpose of the fee and its
anticipated use must be clearly identified. Per Government Code section 66006,
collection of these fees requires separate funds or accounts to avoid commingling and
requires that information be reported within 180 days after fiscal year-end.
The City publicly posted the annual Mitigation Fee Act Report, as required by AB1600,
on November 15, 2023 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. Per Government Code section 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, only the Transportation Impact Fee is subject to the five-year
reporting.
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 several years to accumulate sufficient
funds to implement the relatively high-cost projects the City's development impact fees
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are eligible to fund. The following is a summary of each development 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 childcare
facilities. Fees are computed annually on July 1, increasing by a percentage
equal to the Engineering Construction Cost Index as published by Engineering
News Record. Child Care Linkage Fees (CCLF) shall be paid by the final
inspection date and prior to the issuance of the Certificate of Occupancy.
SMMC section 9.65.070 specifies that funds collected in the Child Care Linkage
Fee Reserve Account shall be expended only on the construction and
establishment of child care facilities within the City of Santa Monica, including,
but not limited to, expenditures for land acquisition, planning, legal advice,
engineering, design, construction and equipment, as well as any administrative
costs incurred by the City to administer the reserve account. Eligible
expenditures shall not include ongoing operating expenses and general
maintenance of childcare facilities.
FY 2022-23 Fee Activity
FY 2022-23 Child Care Linkage Fee
Beginning
Balance Fees Collected Interest
Earned Expenditures Ending
Balance
$769,644 $655,413 $8,623 $0 $1,433,680
In 2021, the balance of the Child Care Linkage Fee (CCLF) fund reserve account
was fully expended on construction of the Santa Monica Early Childhood Lab
School, which created 106 new child care slots in Santa Monica, including 38 for
infants/toddlers, and 68 for preschool-aged children. Future programs may
include loans or grants for those looking to develop new, licensed childcare in
Santa Monica.
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2. Transportation Impact Fee (TIF) – This fee is collected on eligible new
development and changes in land use that result in increased trip generation.
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 TIF is based upon the costs associated with
transportation improvements and the amount of new auto trips that can be
attributed to land use changes.
Funds collected are used to fund transportation improvements, such as
sidewalks, pedestrian crossing improvements, traffic signal upgrades, transit, and
bicycle facilities, per SMMC Chapter 9.66. Funds are frequently leveraged as
grant match for projects such as Safe Streets for 17th Street and implementation
of the Wilshire Boulevard Safety Study recommendations. Grant projects have
longer delivery times but increase the number and size of improvements resulting
from use of these fees. Grant matching was assumed in the fee calculation and
nexus study supporting the development of the TIF.
FY 2022-23 Fee Activity
FY 2022-23 Transportation Impact Fee
Beginning
Balance Fees Collected
Interest
Earned Expenditures
Ending
Balance
$11,418,765 $2,270,504 $35,560 $1,917,592 $11,807,237
In FY 2022-23, $1,917,592 was expended on capital improvement project
delivery, including tools to analyze crash reports to determine safety
countermeasures, project design, right of way, required studies, prevailing wage
monitoring, utility coordination, and construction to implement Vision Zero
improvements associated with the following projects:
• 4th St Enhancements – Expo Linkages, Phase 2: $433,343
• Michigan Ave Greenway / 20th St Bike Connection: $7,647
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• Pico Blvd / SMC Pedestrian Safety Improvements: $752,693
• Multimodal Signal Detection: $24,548
• Stewart and Pennsylvania Safety Enhancement Project: $21,485
• Project Management Support: $26,187
• Safe Routes at Four Schools: $290,702
• Safe Streets for 17th Street and Michigan Avenue: $197,250
• Construction Management Services: $163,737
State law requires that TIF funds be used for the delivery of physical
improvements. These projects require significant time for project delivery
because of local design, outreach and procurement steps and State and Federal
grant funding approval processes. TIF funds are pre-committed to projects for an
extended time as a result, and funds need to be held available for upcoming
grant match commitments. Staff anticipates using portions of the fund balance to
support longer-term projects identified in the TIF nexus study such as bike
facilities, sidewalks, and safe crossings. This information along with additional
project and expenditure information is available in Attachment A.
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 per SMMC
Chapter 9.67.
FY 2022-23 Fee Activity
FY 2022-23 Parks and Recreation Impact Fee
Beginning
Balance
Fees
Collected
Interest
Earned Expenditures
Ending
Balance
$4,037,185 $2,551,908 $42,907 $246,410 $6,385,590
In FY 2022-23, a total $246,410 was expended. Of the total, $150,210 was spent
on playground safety upgrades; $440 on the basketball court at Marine Park;
$50,680 was used on the Citywide Park Condition Assessment; $75 was spent
on Douglas Park for the Notice of Exemption Fee; $42 was spent on labor
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compliance review to begin construction at Beach Park #1; and one project, the
expansion of the Community Gardens at Marine Park, was completed and
partially funded at 80% with parks and recreation impact fees in the amount of
$44,963.
Included in the FY 2023-25 Adopted Budget, a total $664,700 was allocated to
the reconstruction of two basketball courts at Marine Park ($414,700) and to
address needed repairs and deferred maintenance in parks ($250,000), as per
the Park Condition Assessment, a project that identifies and prioritizes parks and
playground safety enhancements. Work on the basketball courts is expected to
start and finish in Summer 2024. Construction of repairs and maintenance will
start after the Park Condition Assessment is complete, which started in the
Spring of 2023 and is scheduled to be completed in Summer 2024.
Staff continues to evaluate potential park-based projects, such as repairs and
construction to essential equipment and infrastructure to maintain access to open
spaces. Staff also actively utilize this funding to meet local match requirements
when applying for grants. This enables the City to maximize available funding for
priority projects. Projects are prioritized based on health and safety criteria and
presented to Council as part of the proposed Capital Improvement Program
budget. Staff anticipates that $4.9 million in available funding would be used for
future projects at Memorial Park and Clover Park and would be set aside for
annual park improvements, the Park and Recreation Master Plan,
implementation of emergency projects identified by the Park Condition
Assessment, the conversion of the Santa Monica Airport to a ”Great Park”,
possible pickleball expansion projects, and local match requirements when
applying for grants, and to support ongoing playground safety upgrades.
4. Affordable Housing Commercial Linkage (AHCL) Fee – To offset the additional
need for affordable housing generated by new commercial development, the City
adopted the AHCL fee, per SMMC Chapter 9.68 on June 23, 2015 to contribute
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to the creation of affordable housing production and preservation. The City
utilizes this funding for the production and preservation of affordable housing by
issuing loans to nonprofits for the acquisition of property, new construction, or
rehabilitation of existing buildings within the City. In FY 2022-23, no fees were
disbursed.
FY 2022-23 Fee Activity
FY 2022-23 Affordable Housing Commercial Linkage Fee
Beginning
Balance
Fees
Collected
Interest
Earned Expenditures
Ending
Balance
$1,284,476 $1,023,326 $14,432 $0 $2,322,234
AHCL fees are one of several funding sources deposited into the Citywide
Housing Trust Fund. As affordable housing projects are identified and reviewed
by staff, these funds are considered for use as part of each project’s funding mix.
The available funding included in this report has not yet been dedicated to a
specific property acquisition, rehabilitation, or new development. However, there
are affordable housing developments in the pipeline that could utilize this
funding. Final funding mixes for these developments will be decided as
development proposals are refined and financial feasibility determined. As of
November 2023, the City is tentatively planning on committing $1.7M of these
funds to address cost increases at the 1342 Berkeley project. This project would
create 13 affordable housing residences primarily targeted to young adults 18-24
years old.
5. Water Demand Mitigation Fee – On March 19, 1991, the City Council adopted
Resolution 8196 (CCS) which established a one-time fee to mitigate the total
daily water consumption rate projected for new development (Water Demand
Mitigation Fee). The Water Demand Mitigation Fee was set at $3.00 for each
gallon of daily water demand that must be mitigated. The Water Demand
Mitigation Fee is required when: 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
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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. On July 1, 2017, the Water Neutrality Fee replaced the Water Demand
Mitigation Fee.
FY 2022-23 Fee Activity
FY 2022-23 Water Demand Mitigation Fee
Beginning
Balance
Fees
Collected
Interest
Earned Expenditures
Ending
Balance
$320,894 $0 $0 $552 $320,342
In FY 2022-23, $552 was expended on the Recycled Water Main Expansion Project.
Staff anticipates using the available balance of $320,342 to complete the Recycled
Water Main Expansion Project.
This is not a close out of the developer 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.
Environmental Review
This report is exempt from the California Environmental Quality Act (CEQA) pursuant to
Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states
that CEQA does not apply, “where it can be seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment.”
This report is administrative in nature, and no action is being undertaken. Therefore, it
can be seen with certainty that there is no possibility that the activity in question may
have a significant effect on the environment.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
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Prepared By: Stephanie Manglaras, Assistant City Treasurer
Approved
Forwarded to Council
Attachments:
A. Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600)
B. 121223 (001) - Resolution Adopting Five-year Findings for TIF
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(A)A brief description of the type of fee in the account or fund.
(B)The amount of the fee.
Project Fee
Residential $179.46 per unit
Hotel $4.28 per square foot
Retail $6.09 per square foot
Office $8.52 per square foot
(C)The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE
FY 2022-23 769,644$ 655,413 8,623 - 1,433,680$
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.
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 (CCLF) 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.
Staff are working on ways to make funds available. Future programs may include loans or grants for those looking to develop new, licensed
child care in Santa Monica.
No expenditures were incurred during this reporting period.
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 of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2023
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:
5.B.a
Packet Pg. 86 Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees)
(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 $9,427.39 per unit
Single Family,
Area 2 $9,675.48 per unit
Multi-Family, Area
1 $3,225.16 per unit
Multi-Family, Area
2 $4,093.47 per unit
Multi-Family, Area
3 $3,225.64 per unit
Retail, Area 1 $26.05 per square foot
Retail, Area 2 $37.33 per square foot
Office, Area 1 $12.03 per square foot
Office, Area 2 $13.40 per square foot
Medical Office,
Area 1 $34.86 per square foot
Medical Office,
Area 2 $36.96 per square foot
Hospital, Area 1 N/A
Hospital, Area 2 $18.24 per square foot
Lodging, Area 1 $4.46 per square foot
Lodging, Area 2 $4.46 per square foot
Industrial, Area 1 $1.48 per square foot
Industrial, Area 2 $1.62 per square foot
Auto Sales and
Display Areas,
Area 1 $1.48 per square foot
Auto Sales and
Display Areas,
Area 2 $1.62 per square foot
City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2023
Transportation Impact Fee
For the purpose of compliance with Government Code subsection 66006(b)(1), the following information regarding AB 1600 fees is presented:
For each separate account or fund established pursuant to subdivision (a), the local agency shall, within 180 days after the last day of each fiscal year,
make available to the public the following information for the fiscal year:
Residential (dwelling unit)
Non-Residential (sq. ft.)
Transportation Impact Fee - The City Council adopted an ordinance on February 26, 2013 that established a Transportation Impact Fee for
new development and intensified land uses that will fund transportation network improvements such as new sidewalks, crosswalks, traffic
signal upgrades, bus stops, transportation demand management, and bicycle facilities that are necessitated by the new trips associated with
the land use change. The fees are based on a nexus study and calculated using residential units or commercial square footage. The fee is
charged prior to issuance of building permits, unless state law requires the City to accept later fee payment. The Transportation Impact Fee
reflects the costs associated with transportation network improvements and the amount of new auto trips that can be attributed to land use
changes.
5.B.a
Packet Pg. 87 Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees)
City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2023
Transportation Impact Fee
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES
ENDING FUND
BALANCE
FY 2022-23 11,418,765$ 2,270,504 35,560 1,917,592 11,807,237$
Memorial Park Multi-Use Path
Olympic Blvd First/Last Mile Improvements
to Bergamot Station FY23-24
Wilshire Boulevard Safety Improvements -
Phase 2 FY24-25
Project Progress
Ongoing
Stewart-Pennsylvania Safety Enhancement
Project FY23-24
FY24-25
Santa Monica Blvd Safety Improvements FY24-25
Citywide Vision Zero Improvements via
Annual Repaving Project (Wilshire
Boulevard Safety Improvements - Phase 1,
Ocean Avenue Protected Bikeway,
Crosswalk Renewal Program, Vision Zero
Priority Intersections)
Ongoing4th Street Enhancements - Expo Linkages,
Phase 2
FY25-26
Broadway Protected Bikeway - 5th Street
to 26th Street Ongoing
Project Name
(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.
In FY 2022-23, $1,917,592 of TIF funds were expended on capital improvement project delivery, including tools to analyze crash reports to
determine safety countermeasures, project design, right of way, required studies, prevailing wage monitoring, utility coordination, and
construction to implement Vision Zero improvements associated with the following projects:
> 4th St Enhancements – Expo Linkages, Phase 2: $433,343
> Michigan Ave Greenway / 20th St Bike Connection: $7,647
> Pico Blvd / SMC Pedestrian Safety Improvements: $752,693
> Multimodal Signal Detection: $24,548
> Stewart and Pennsylvania Safety Enhancement Project: $21,485
> Project Management Support: $26,187
> Safe Routes at Four Schools: $290,702
> Safe Streets for 17th Street and Michigan Avenue: $197,250
> Construction Management Services: $163,737
Pearl Street Preliminary Design
Michigan Avenue Greenway 20th Street
Bike Connection Ongoing
14th Street Bikeway - Plans, Specification,
and Estimates FY25-26
5.B.a
Packet Pg. 88 Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees)
City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2023
Transportation Impact Fee
No refunds were made during the fiscal year.
Additional Information is being provided regarding this fee:
Local Funds Misc. Grants Fund
$17,136 $623,723
$165,498 $590,915
$0 $0
$498,373 $2,851,421
$0 $569,758
$0 $0
$0 $0
$0 $2,711,986
$0 $6,811,454
$0 $4,000,000
$0 $522,327
$0 $0
$290,000 $0
$971,007 $18,681,584
Santa Monica Blvd Safety Improvements $680,000
Wilshire Boulevard Safety Improvements -
Phase 2
Stewart-Pennsylvania Safety Enhancement
Project
Construction Management Services for TIF-
Funded Capital Projects
Citywide Vision Zero Improvements via Annual
Repaving Project (Wilshire Boulevard Safety
Improvements - Phase 1, Ocean Avenue
Protected Bikeway, Crosswalk Renewal
Program, Vision Zero Priority Intersections)
$1,000,000
$500,000
$808,000
$11,804,686
$650,000
Pearl Street Preliminary Design
Broadway Protected Bikeway - 5th Street to
26th Street
Olympic Blvd First/Last Mile Improvements to
Bergamot Station
$1,171,058
$376,345
$255,000
$1,331,000
$2,572,283
$1,053,000
$730,000
14th Street Bikeway - Plans, Specification, and
Estimates
Memorial Park Multi-Use Path - Plans,
Specifications and Estimates
No interfund transfers were made during the fiscal year.
Project Transportation Impact Fee
Traffic Engineering Services for TIF-Funded
Capital Projects
Total
$678,000
Michigan Avenue Greenway 20th Street Bike
Connection
4th Street Enhancements - Expo Linkages,
Phase 2
(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 Transportation Impact Fee was established to ensure that new development pays its fair share of the costs of providing the transportation
infrastructure necessary to implement the no net increase in vehicle trips originating or ending within the City during the PM peak hour goal of
the Plan. By supporting this goal, it also supports Santa Monica's goals established in the adopted Land Use and Circulation Element of
reducing vehicle trips and promoting walking, bicycling, carpooling, and use of public transit, in order to accommodate some desired growth
and development.
The Transportion Impact Fee funds capital improvements projects including the completion of the sidewalk network, and enhanced pedestrian
crossings along major boulevards, striping and signage of new bike lanes, bike paths, and bike boulevards, and installation of new bus pads,
bus benches and transit only lanes.
(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.
5.B.a
Packet Pg. 89 Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees)
City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2023
Transportation Impact Fee
Local Funds Misc. Grants Fund
Funds Available Funds Available
Funds Available Funds Available
N/A N/A
Funds Available Funds Available
N/A Funds Available
N/A N/A
N/A N/A
N/A Funds Available
N/A FY24-25
N/A Funds Available
N/A FY23-24
N/A N/A
Funds Available N/A
Construction Management Services for TIF-
Funded Capital Projects Funds Available
Traffic Engineering Services for TIF-Funded
Capital Projects Funds Available
Stewart-Pennsylvania Safety Enhancement
Project Funds Available
Santa Monica Blvd Safety Improvements Funds Available
Memorial Park Multi-Use Path Funds Available
Olympic Blvd Pedestrian Improvements Funds Available
Wilshire Boulevard Safety Improvements -
Phase 2 Funds Available
Broadway Protected Bikeway Funds Available
14th Street Bikeway - Plans, Specification, and
Estimates Funds Available
Citywide Vision Zero Improvements via Annual
Repaving Project (Wilshire Boulevard Safety
Improvements - Phase 1, Ocean Avenue
Protected Bikeway, Crosswalk Renewal
Program, Vision Zero Priority Intersections)
Funds Available
Michigan Avenue Greenway 20th Street Bike
Connection Funds Available
Funds AvailablePearl Street Preliminary Design
Transportation Impact Fee
Funds Available
Project
4th Street Enhancements - Expo Linkages,
Phase 2
(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.
5.B.a
Packet Pg. 90 Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees)
(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 $9,841.95
Multi-Family
Residential - Studio/1
Bedroom
$5,333.41 per unit
Multi-Family
Residential - 2+
Bedrooms
$8,590.44 per unit
Retail $1.93 per square foot
Office $2.98 per square foot
Medical Office $1.64 per square foot
Lodging $4.01 per square foot
Industrial $1.67 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE
FY 2022-23 4,037,185$ 2,551,908 42,907 246,410 6,385,590$
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:
City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2023
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:
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.
(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.
(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.
In FY 2022-23, Parks and Recreation Development Impact Fees were expended on the following public improvements:
> $150,210 was spent on playground safety upgrades at Marine Park - This project is ongoing.
> $440 was spent on the Marine Park basketball court - This project is ongoing.
> $50,680 was spent on the Park Condition Assessment - This project is ongoing.
> $75 was spent on Douglas Park - This project is ongoing.
> $42 was spent on Beach Park #1 - This project is ongoing.
> $44,963 was spent to expand the Community Gardens at Marine Park - This project is complete and used 27% Parks and Recreation Development
Impact Fee funds.
In the City’s FY 2023-25 CIP Biennial Budget, Parks and Recreation Development Impact Fees have been allocated for use on two projects:
> $414,700 allocated for the reconstruction of two basketball courts at Marine Park - expected construction to start Summer 2024, completion anticipated
Summer 2024.
> $250,000 allocated to address repairs and deferred maintenance in parks, identified by the priorities identified in the Park Condition Assessment.
Repairs and construction are anticipated to begin in Summer 2024.
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during this fiscal year.
5.B.a
Packet Pg. 91 Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees)
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Project Fee
Retail $12.56 per square foot
Office $14.44 per square foot
Hotel/Lodging $3.96 per square foot
Hospital $7.92 per square foot
Industrial $9.71 per square foot
Creative Office $12.36 per square foot
Medical Office $8.88 per square foot
Institutional $13.18 per square foot
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE
FY 2022-23 1,284,476$ 1,023,326 14,432 - 2,322,234$
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
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:
City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2023
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:
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.
(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.
No expenditures were incurred during this reporting period.
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.
There are no projects underway that utilize these funds. The City is in the process of identifying eligible projects.
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
5.B.a
Packet Pg. 92 Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees)
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
Fee
$990.00
$315.00
$375.00
$570.00
$750.00
$900.00
To be determined by
the Civil Engineering
Plan Checker
(C) The beginning and ending balance of the account or fund and (D) The amount of the fees collected and the interest earned.
FISCAL YEAR
BEGINNING FUND
BALANCE FEES COLLECTED INTEREST EARNED EXPENDITURES ENDING FUND BALANCE
FY 2022-23 320,894$ 0 0 552 320,342$
No interfund transfers or loans were made during the fiscal year from this fund.
No refunds were made during the fiscal year.
Non-Residential:
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:
City of Santa Monica
Development Impact Fees Report Pursuant to the Mitigation Fee Act
Fiscal Year Ended June 30, 2023
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:
$1,127,540 was appropriated to the Recycled Water Main Expansion Project. Construction began December 2020 and is expected to be completed mid
2024.
(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 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 with the following exception: Any new development applications for a building permit filed on or before November 27, 2018,
that only results in a change of use of less than 6,000 square feet and/or an addition of less than 1,500 square feet, will be required to pay the water
demand mitigation fee in effect as of November 27, 2018.
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. Note: The percentage will be reported upon completion of the project/s.
In FY 2022-23, $552 of Water Demand Mitigation Fees were expended on the Recycled Water Main Expansion Project.
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.
Single-Family
Project
Studio/Single Apartment:
1 Bedroom Apartment:
2 Bedroom Apartment:
3 Bedroom Apartment:
Duplex (2 Apartments):
5.B.a
Packet Pg. 93 Attachment: Attachment A - FY 2022-23 Development Impact Fees Report (AB 1600) (5887 : Annual Reporting of Development Impact Fees)
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City Council Meeting: December 12, 2023 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ADOPTING FIVE-YEAR FINDINGS AS TO THE TRANSPORTATION
IMPACT FEE
WHEREAS, the Mitigation Fee Act, Government Code Section 66000 et seq.,
authorizes the City of Santa Monica (“City”) to impose, collect, and expend mitigation fees
to offset the impacts of development within the City; and
WHEREAS, Section 66001(d) of the Mitigation Fee Act requires the City Council
to adopt a resolution making certain findings as to any portion of development fees
collected over five years ago, and each fifth fiscal year thereafter, whether such
unexpended fees have been committed or uncommitted; and
WHEREAS, Chapter 9.66 of the Santa Monica Municipal Code established a
Transportation Impact Fee to implement the “goals, objectives, and policies of the City of
Santa Monica’s Land Use Circulation Element” and address the burdens on the City’s
surface transportation system, including inter alia increased trip generation, created by
new development; and
WHEREAS, portions of the Transportation Impact Fee funds were collected over
five years ago, or otherwise subject to the five-year reporting requirement under the
Mitigation Fee Act (the “Unexpended Fees”); and
WHEREAS, the Mitigation Fee Act requires the City Council to issue findings that
identify the purposes of which the Unexpended Fees are to be used, demonstrate a
reasonable relationship between the Unexpended Fees and the purposes for which they
5.B.b
Packet Pg. 94 Attachment: 121223 (001) - Resolution Adopting Five-year Findings for TIF [Revision 1] (5887 : Annual Reporting of Development Impact Fees)
2
are charged, and identify the sources and amounts of funding anticipated to complete
each project for which the Unexpended Fees are collected and provide approximate dates
on when such funding is expected to be deposited; and
WHEREAS, the City has complied with all notice obligations under Government
Code Section 66006, including publicly posting a Mitigation Fee Act Report on November
15, 2023 at City Hall and on the City’s website.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council has considered the accompanying staff report and
five-year report for the Transportation Impact Fee attached as Exhibit A to the staff report.
SECTION 2. The Unexpended Fees relating to the Transportation Impact Fee will
be used to fund several projects, including: the Michigan Avenue Greenway 20th Street
Bike Connection; 4th Street Enhancements – Expo Linkages, Phase 2; Pearl Street
Preliminary Design; Citywide Vision Zero Improvements; Broadway Protected Bikeway –
5th Street to 26th Street; 14th Street Bikeway; Memorial Park Multi-Use Path; Olympic
Blvd First/Last Mile Improvement to Bergamot Station; Wilshire Boulevard Safety
Improvements – Phase 2; Stewart-Pennsylvania Safety Enhancement Project; and the
Santa Monica Blvd Safety Improvements as further described in Attachment A. There is
a reasonable relationship between using the Transportation Impact Fee to fund these
projects and the stated goal to address the burdens on the City’s surface transportation
system created by new development.
5.B.b
Packet Pg. 95 Attachment: 121223 (001) - Resolution Adopting Five-year Findings for TIF [Revision 1] (5887 : Annual Reporting of Development Impact Fees)
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SECTION 3. The five-year report for the Transportation Impact Fee identifies the
sources and amounts of prior funding, or anticipated funding, to complete each project
for which the fee is collected. The five-year reports also provide approximate dates on
when such funding has been deposited as adopted in prior meetings, or when such
funding is expected to be deposited in connection with future City Council actions .
SECTION 4. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney
5.B.b
Packet Pg. 96 Attachment: 121223 (001) - Resolution Adopting Five-year Findings for TIF [Revision 1] (5887 : Annual Reporting of Development Impact Fees)