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HomeMy WebLinkAbout4.04 Developer Impact Feeby ~- ~ -i~ 1 '~\~ CITY CLERK File # ^~~~-~~ ~/l~% AGENDA STATEMENT CITY COUNCIL MEETING DATE: December 16, 2008 SUBJECT: Annual Report of Developer Impact Fee Funds Deposits: Pursuant to Government Code Sections 66002, 66006 and 66008 (AB 1600) Report Prepared by: Paul S. Rankin, Administrative Services Dir. Q~, ATTACHMENTS: 1. Annual Report of Developer Impact Fee Funds Deposits 2. Resolution Making Findings Regarding Unexpended Traffic Mitigation Contributions for Fiscal Year 2007-2008 RECOMMENDATION: 1) Accept the Annual Report of Developer Impact Fee Funds For the Year Ended June 30, 2008; and E 2) Adopt the Resolution Making Findings Regarding Unexpended Traffic Mitigation Contributions for Fiscal Year 2007-2008. FINANCIAL STATEMENT: All Developer Deposits are anticipated to be utilized for the purpose for which they were originally collected. DESCRIPTION: A City is authorized under State Law to require development applicants to contribute fees toward off-site public improvements, which are needed as a result of the new development. Annually the City is required to disclose the status of funds held for this purpose. The report in Attachment 1 provides information covering the period from July 1, 2007 through June 30, 2008. Requirements of Law The law requires the City to review on an annual basis the status of development fees collected. The law provides for a report to be made available within 180 days from the end of the Fiscal Year. In addition, Government Code Section 66006(b)(2) requires the report is to be included on the Agenda at a public meeting not less than 15 days after the information was made available. Staff previously made available to the public a draft copy of this report on Monday, December 1, 2008. In the event that any fees remain unexpended for more than five years, the City Council must adopt a Resolution making certain findings related to the continued need for the funds to complete the improvements. In the event that findings are not made to support the retention of the funds, the unexpended fees must be returned to the current owners of the subject property. -------------------------------------------------------------- COPY TO: Page 1 of 3 ITEM NO. G:W61600 -Impact Fees~FY 07-08~AGENDA FY0708.DOC Maior Components of Report The Fiscal Year 2007/2008 Annual Report of Developer Funds is shown in Attachment 1. The law requires disclosure of numerous details with respect to activity in these accounts. This includes: beginning and ending balances; collections for the year; expenditures for the year; interest earned; and any refunds. For the purpose of this report the City is providing information on the following funds: FUNDS ACCOUNTED FOR IN REPORT (ATTACHMENT 1) • Eastern Dublin Traffic Impact Fees • Downtown Traffic Impact Fee • Public Facilities Impact Fees • Park Dedication Fees • Fire Impact Fees • Tri Valley Transportation Development Fees • Category 3 Regional Traffic Impact Fees • Pass Through Fees: (Freeway Interchange Fees /BART Garage) • Dublin -Contra Costa Traffic Impact Mitigation Fees Excluded from this report are developer fee types that do not fit the definition for the disclosure requirements found in State Law. California Government Code section 66001 is applicable to funds collected for public improvements. The Noise Mitigation funds are collected to finance future noise mitigation on private properties and would not meet the public improvement criteria. Three fees are collected as part of the Zoning powers of the City: 1)Non-Residential Affordable Housing Linkage Fee 2) Housing In-Lieu funds; and 3) Public Art In-Lieu funds. Fees collected under the City's general police power are not deemed as mitigation fees. Details of activity for each of the fees are displayed in the Annual Report (Attachment 1). The following is a summary of the activity for the year including the Beginning and Ending Balance. Expenses: FEE Eastern Dublin Traffic Impact Beginning ~~Balance X1112007 Additions:: Fees Collected Interest Revenue Project Costs; Interest, Loan . Re a menfs -- Lnding Balance (June 30,2008 Fees (Excludes BART Garage Com onent -Pass Throu ) $ 10,711,594 $ 13,345,881 ($ 4,264,080) $ 19,793,395 D owntown Traffic Impact Fees & Miti ation Pro'ects P bli F il $ 2,238,316 $ 169,533 $ 44,288) $ 2,363,561 u c ac ity Fees Fi I $ 9,343,597 $ 2,895,214 ($ 4,538,484) $ 7,700,327 re mpact Fees -Advance Owed To General Fund T i V ll ($ 1,791,762 $ 28,308 ($ 73,567) ($ 1,837,021) r - a ey Transportation Develo ment Fees ($ 69,979) $ 67,784 None ($ 2 195) C t 3 , a egory Regional Traffic hn act Fees $ 1,316,019 $ 58,803 None $ 1 374 822 P Th , , ass rough Fees: Freeway Interchange /BART Gara e D bli $ 1,081,138 $ 284,245 ($1,365,383) $ p u n -Contra Costa Traffic Im act Miti ation Fees $ 3,154,496 $ 1,299,697 ($4,454,193) $ p TOTAL $ 25,983,419 $18,149,465 $14,739,995) $ 29,392,889 rage~or~ It is important to note that these fees are restricted and can only be used for the capital related purposes for which they have been collected. Given the multi-year nature of the capital projects to be financed it is expected that funds will be accumulated and used based on the construction timing. Funds Remaining Unexpended More Than 5 Years After Beim Collected One of the provisions in the legislation regulating development fees is to regularly review funds collected and held without being expended for more than five years. The law requires the City to make certain findings in order to continue to hold fees collected and unexpended for more than five years. The following Table summarizes the accounts with contributions which have remained unexpended for more than five years. All of the projects are identified in the adopted City of Dublin 2008-2013 Capital Improvement Program. SUMMARY OF ACCOUNTS WITH FUNDS REMAINING UNEXPENDED FOR FIVE YEARS OR MORE AFTER THEY WERE COLLECTED Impact Fees Pro'ect Name D h (Unexpended) as of June 30, 2008 Accumulated Interest TOTAL DESIGNATED oug erty Road -North of Amador Valley Boulevard To City Limit St P i k $294,364 $ 131,366 $ 425,730 . atr c Wa -Regional to Golden Gate D h $395 266 $ 190,809 $ 586,075 oug erty Road Improvements -Houston Place North to Amador Valley Blvd Bik L $148,791 $ 41,413 $ 190,204 e ane - Amador Valley Boulevard Stagecoach Road to Dou erty Road $ 51 507 $ 19,491 $ 70,998 Dublin Boulevard Improvements - Sierra Court to Dublin Court S l D $509,046 $ 170,305 $ 679,351 car ett rive Extension Between Dublin Blvd and Dou herty Road $ 28 801 $ 78,664 $ 107,465 Proposed Resolution Making Necessary Findings In order to retain fees longer than five years certain findings must be made by the City Council. Without this action the fees would need to be refunded. All of the projects summarized in the previous section of this report are identified projects that will require the funding in the future. The City continues to allocate interest on the balances retained. Staff has identified the findings necessary as part of the attached Resolution (Attachment 2). Adoption of the Resolution allows the City to continue to retain the fees, in order to fund the projects for which they were collected. Staff would recommend that the City Council accept the Annual Report of Developer Impact Fee Funds For the Year Ended June 30, 2008 (Attachment 1) and adopt the attached Resolution Making Findings Regarding Unexpended Traffic Mitigation Contributions for Fiscal Year 2007-2008 (Attachment 2). Page 3 of 3 v`~/y;~or~Ut~~~~ l9 ~-; _=x,,82 City of Dublin Annual Report of Developer Impact Fee Funds Deposits For the Year Ended June 30, 2008 CONTENTS i~ ~~ SECTION INFORMATION pAGEfS) Section 1: Table of Disclosure Requirements With Cross Reference To Government Code and Location In City of Dublin Report ...................................... 1-2 Section 2: Description Impact Fees Included ~In Report......... 3 Section 3: Status of Funds • Interfund Loans & Transfers • Specific Funds Held In Excess of 5 Years • Refunds .............................................. 4-6 Section 4: 2007/2008 Accounting of Impact Fees • Eastern Dublin Traffic Impact Fees • Public Facility Impact Fees • Park Dedication Fees • Fire Impact Fees • Downtown TIF /Mitigation (All Accounts) • Tri-Valley Transportation Development Fee • Freeway Interchange Fees • BART Parking Garage Component TIF • Dublin /Contra Costa Mitigation Fees....... 7-8 Section 5: Detail By Account -Downtown Traffic Mitigation Contributions ................................................ 9 Section 6: Schedule of Funding For Public Improvements 10-11 And Percentage Funded By Developer Fees........... Data Available To Public December 1, 2008 Presented City Council Meeting December 16, 2008 ~tew,~ ~/ ~ ~i I2~1 b ATTACHMENT 1 ~~,3 Section 1 TABLE OF IMPACT FEE DISCLOSURE REQUIREMENTS WITH CROSS REFERENCES Government Code Information Found In Section Requirement Ci Report At Provide the following: 66006 (b) (A) 1. A brief description of each of the City's impact fees. Section 2, Part A 66006 (b) (B) 2. The amount charged for the City's impact fees. Section 2, Part B 66006 (b) (C) 3. The beginning and ending balance for the City's Section 4 and Section 5 impact fee accounts. 66006 (b) (D) 4. The amount of fees collected and interest earned. Section 4 and Section 5 66006 (b) (E) 5. An identification of each public improvement on Sections 4, 5 and 6 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. 66006 (b) (F) 6. An identification of an approximate date by which Section 3, Part B 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. 66006 (b) (G) 7. A description of each interfund transfer or loan Section 3, Part A 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. 66006 (b) (H) 8. The amount of refunds made pursuant to Section 3, Part C subdivision (e) of Section 66001 and any allocations pursuant to subdivision (f) of Section 66001. Page 1 G:Wb1600 -Impact Fees\FY 07-08\OUTLINE.DOC -~ ~3 Section 1 TABLE OF IMPACT FEE DISCLOSURE REQUIREMENTS WITH CROSS REFERENCES Government Code Information Found In Section Requirement City Report At 66001 (d) 9. For the fifth year following the first deposit into the Section 3, Part B and account or fund, and every five years thereafter, the attached Resolution for City shall make all of the following findings with items a-e below. respect to those portions of the impact fee remaining unexpended, whether committed or uncommitted. 66001 (d) (1) a. Identify the purpose to which the fee is to be used for. 66001 (d) (2) b. Demonstrate a reasonable relationship between the fee and the purpose for which it is charged. 66001 (d) (3) c. Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements. 66001 (d) (4) d. Designate the approximate dates on which the funding referred to in item c above is expected to be deposited into the appropriate account or fund. 66006 (b) (1) (F) e. When sufficient funds have been collected, the agency shall identify, within 180 days of the determination that sufficient funds have been collected, an approximate date by which the construction of the public improvements will commence. Page 2 G:\Ab1600 -Impact Fees\FY 07-08\OUTLINE.DOC Section 2 ~ I~ DESCRIPTION OF IMPACT FEES A. DESCRIPTION OF THE CITY'S IMPACT FEES The City of Dublin has established the following Impact Fees and Traffic Mitigation Contributions: • Eastern Dublin Traffic Impact Fees • Downtown Traffic Impact Fee • Public Facilities Impact Fees • Park Dedication Fees • Fire Impact Fees • Tri Valley Transportation Development Fees • Freeway Interchange Fees • Dublin -Contra Costa Traffic Impact Mitigation Fees. These impact fees were established to pay for the design, development and construction of public improvement projects for: streets; public facilities; parks; fire capital expansion projects and community amenities. B. AMOUNTS CHARGED BY THE CITY FOR IMPACT FEES AND PUBLIC IMPROVEMENTS FUNDED BY THESE FEES The amounts charged for the impact fees noted above are dependent upon the type and size of a particular development and were based upon related studies, conducted prior to the adoption of the fees. The City Council has adopted and imposed the subject fees through the passage of the following resolutions. These fees are updated on an annual basis based upon various cost indexes described in further detail as part of the resolutions for these fees: The studies and supporting documentation presented or adopted as part of the resolutions noted above identify the public improvements that those fees will be used to finance. These studies also show that there is a reasonable relationship a.) between the fees' use and the type of development project on which the fee is imposed and b.) between the need for the public facility and the type of development project on which the fee is imposed. Page 3 G:\Ab1600 -Impact Fees\FY 07-08\sec_2_Descrip[ionofFees.DOC Impact Fee Resolution /Ordinance SECTION 3 ~- ~3 STATUS OF FUNDS A. INTERFUND LOANS AND TRANSFERS OF IMPACT FEES No interfund loans or transfers of impact fees were granted to other funds during Fiscal Year 2007-2008. The Fire Impact Fee Fund received an advance /loan from the General Fund in both Fiscal Year 2003/2004 and Fiscal Year 2004/2005. Collections of Fire Impact Fees are being used to repay the advance. Interest accrues at the rate equal to the City's return on its investment portfolio. B. ANALYSIS OF FEES LEVIED AGAINST DEVELOPMENT PROJECTS IN ACCORDANCE WITH SEC. 66001 OF THE (CGC) AND UNSPENT AFTER 5 YEARS The purpose of the review was to identify monies that have been collected and held for a period of more than five years and to make appropriate disclosures. The City of Dublin has analyzed the balance of monies held in its impact fee funds and has determined that there are six projects involving the use of Traffic Mitigation Contributions, which have continued to be held for more than five years. The Projects are accounted for in the adopted City of Dublin Five Year Capital Improvement Program 2008 - 2013. In accordance with State Law, the City Council has previously adopted Resolution #01-08 on January 15, 2008 declaring the need to continue to maintain the funds in order to complete these six projects. Details related to the six projects and funds held for more than five years are identified below: 1. DOUGHERTY RD - AMADOR VALLEY BLVD NORTH TO CITY LIMIT (#96855) Amount Collected in Previous Fiscal Years Subject to 5 Year Limitation: $294,364 Project Cost As Identified In CIP (#96855): $4,377,563 Descri tion of Pro'ect This project will widen Dougherty Road to a six lane divided highway, including landscaped medians within the project limits. In a previous phase a traffic signal was added at Willow Creek Drive and funded from the Dougherty Valley Impact Fees. Source of Funding The work is anticipated to be funded by Traffic Impact Fees, including contributions from this source as well as Eastern Dublin TIF and contributions from the Dublin /Contra Costa County (Dougherty Valley) Mitigation Fees. Approximate Project Completion Dates A precise completion date for the project has not been established. It is currently expected that it will be will be a date outside the current 5 Year CIP planning horizon. 2. ST. PATRICK WAY -REGIONAL STREET TO GOLDEN GATE DRIVE (#96870) Amount Collected in Previous Fiscal Years Subject to S Year Limitation: _$395,266 Project Cost As Identified In CIP (#96870): 1 501 365 Description of Prot This project will construct a 2-lane roadway between Golden Gate Drive and Regional Street, south of and parallel to Dublin Boulevard. The need for a connector road for three long commercial cul-de-sacs was first identified in the City's original Downtown Study. This need is becoming more apparent as this portion of the Central Business District develops further and the BART parking structure has been constructed along Golden Gate Drive. The section of Saint Patrick Way between Amador Plaza Road and Golden Gate Drive was constructed by the Alameda County Transportation Authority (ACTA) as part of the I-580/I-680 Interchange Page 4 G:\Ab1600 -Impact Fees\FY 07-08\sec}_Status of FundsFY0708.DOC SECTION 3 STATUS OF FUNDS ~~13 Improvements. For the purpose of this Capital Project, only the portion of Saint Patrick Way that is anticipated to be built by the City is included in the cost estimate. Source of Funding Downtown Traffic Mitigation Contributions and Impact Fees, BART mitigation funds, and developer mitigation improvements. Approximate Project Completion Dates A deposit has been made to the State Condemnation Fund for the acquisition of the right-of--way. It is estimated that the City will complete the acquisition of right-of- way in Fiscal Year 2008-2009 and the Developer will then construct improvements. 3. DOUGHERTY ROAD IMPROVEMENTS -HOUSTON PLACE NORTH TO AMADOR VALLEY BOULEVARD (#96850) Amount Collected in Previous Fiscal Years Subject to 5 Year Limitation: $148,791 Project Cost As Identified In CIP # 96850: $4,474,177 Description of Project This project consists of two phases and the first phase is complete. The second phase consists of widening the number of travel lanes from four to six lanes and installing landscaped medians. Source of Funding In addition to these funds, Eastern Dublin Traffic Impact Fee Funds; and Dougherty Valley (Contra Costa County Impact Fees) Approximate Project Completion Dates A precise completion date for the project has not been established. It is currently expected that it will be will be a date outside the current 5 Year CIP planning horizon. 4. BIKE LANE - AMADOR VALLEY BOULEVARD CORRIDOR (#96778) Amount Collected in Previous Fiscal Years Subject to 5 Year Limitation: $51,507 Project Cost As Identified In CIP #96778: 110 204 Description of Project This project would construct a Class 2 bicycle lane along the north side of Amador Valley Boulevard between Stagecoach Road and Dougherty Road to allow for the exclusive use of bicycles and pedestrians. This Bike Lane Project on Amador Valley Boulevard will connect the Iron Horse Trail, the Alamo Creek Bike Path, and the Dougherty Road Bike Path. Source of Fundine Measure B Bike and Pedestrian, and Traffic Mitigation Contributions. Approximate Project Completion Dates It is estimated that the project will be completed in Fiscal Year 2008-2009. 5. DUBLIN BLVD. IMPROVEMENTS -SIERRA COURT TO DUBLIN COURT (#96930) Amount Collected in Previous Fiscal Years Subject to 5 Year Limitation: $509,046 Project Cost As Identified In CIP #96930: $2,984,005 Descri tion of Project This project will widen Dublin Boulevard from Sierra Court to Dublin Court and underground existing overhead utilities. This project will increase the roadway capacity from four to six Page 5 G:\Ab 1600 -Impact Fees\FY 07-08\sec_3_Status of FundsFY0708.DOC SECTION 3 ~ ~ STATUS OF FUNDS lanes. This is the third phase of the Dublin Boulevard widening. The widening of this segment of Dublin Boulevard will complete the improvements on Dublin Boulevard from San Ramon Road to Dougherty Road. Recent traffic studies have shown that six lanes of traffic will be needed as Dublin continues to expand to the east. Source of Funding Traffic Mitigation Contributions, Category 2 Eastern Dublin TIF Fees Approximate Project Completion A precise completion date for the project has not been established. It is currently expected that it will be will be a date outside the current 5 Year CIP planning horizon. 6. SCARLETT DR & IRON HORSE TRAIL EXTENSION -DUBLIN BLVD - DOUGHERTY RD (#96840) Amount Collected in Previous Fiscal Years Subject to 5 Year Limitation: $28,801 Project Cost As Identified In CIP #96840: 11 140 426 Description of Project This project will widen Dublin Boulevard from Sierra Court to Dublin Court and underground existing overhead utilities. This project will increase the roadway capacity from four to six lanes. This is the third phase of the Dublin Boulevard widening. The widening of this segment of Dublin Boulevard will complete the improvements on Dublin Boulevard from San Ramon Road to Dougherty Road. Recent traffic studies have shown that six lanes of traffic will be needed as Dublin continues to expand to the east. Source of Funding Traffic Mitigation Contributions, Category 2 Eastern Dublin TIF Fees; Alameda County Transportation Improvement Authority Project Funds. Approximate Project Completion Dates A precise completion date for the project has not been established. It is currently expected that it will be will be a date outside the current 5 Year CIP planning horizon. C. REFUNDS No refunds were made during Fiscal Year 2007-2008. 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M ~ ~ ~ 0 ~ l0 ~ 69 69 ~ 69 W H N az~ Woo U N c~ ~ °o o°OO o _ . ~ ~ ~ ~ ~~~ ~ °~ ~~ w w U W H U a ~ ~ N ~ _ ~ ~ '~ ~ '" E-~ ~ ~" w A o ~ W W ~ U ~ ~ ~ z ~,W [~ ~ ~ ~ 3. m O Over N A M Orn.-.Q, 00 O o0 ~ E..y O ~ ~+ ~ 'S7 ~ ~ '"" ~ 00 ~ .-+ M V ~ ~ ~ C ~ O ~ O~ l~ M ~ ~ O N O by W Q °' N r.+ 3. ~ M ~ ~' `' `° ~ ~ , M 'ti ~ ~y ~ ~ ~ v~9 ~ ~ 'C ~ W ~ ~ ~ y s ~- ~ ~ ~ V y > ee ' a ~ A a ~ ~ ~ O O U rr~ W ~ w ~ a o ~ Z ~ Q 0 ~ U _ Y ~ ° ~ F ~ ~ ~ ~ ~ ~ y o~c~ AUL7 ~ , ~ o o ~, ~~~b ~ ~ z ~ o ~ ~, x ~ ~ ~ ~ W ~ ~ U ~ ~ ~ a ~ ~ w ~ E,.y ~ °' > .~ ~ o o ~ ~ ~ o ;~ .~ F" o k" O ~ ~ i ~ ~ o ~ ~ ~ ~ ~ ~a ~ ~° a~ yx Wr ~~ ~ O ^ ~ C~ . y~ a F y ~ ~~ w ~ O U a ~w ~, ~ ~ ~ W z ~ :ow ~ ¢A"ae p xi ~ ~ Q~ o ~ ~~~~ ° U ° ~ w~Ca ~ ~' Via, ~ a: F, ~ Q v~ v~ Q a -~ Z ~ w, A c OON c O M ~ +.+ _M000 V [~ ~t ~' 00 C 00 O 00 00 A W rnrn~ c rnrno,rn A 13 0 U Page 11 RESOLUTION NO. -08 ~ J J A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN MAHING FINDINGS REGARDING UNEXPENDED TRAFFIC MITIGATION CONTRIBUTIONS FOR FISCAL YEAR 2007-2008 Recital The City has collected contributions for completion of off-site public traffic improvements needed as a result of new development, which will not be expended within five years after deposit. The improvements are described in the 2008-2013 Ca ital Im rovement Pro am and include the im rovements described below: Unexpended Project Name Developer Fees 1. Dou ert Road - Amador Valley Boulevard North to City Limit as of June 30, 2008 2. St. Patrick Way - Re Tonal to Golden Gate $294,364 3. Dou ert Rd Im vts -Houston Pl North to Amador Valle Blvd $395,266 4. Bike Lane - Amador Valley Blvd Sta ecoach Rd to Dou hert Rd $148,791 5. Dublin Blvd Irri rovements -Sierra Ct to Dublin Ct $ 51,507 6. Scarlett Drive Extension -Between Dublin Blvd &Dou ert Rd $509,046 $ 28,801 2. The Six Projects described in the recital above are referred to as the "Six Traffic Improvements." The City Council finds, on the basis of the foregoing ReFci'taldsl that: A. The contributions which have been collected for the Six Traffic Improvements will remain unexpended after Fiscal Year 2007-2008, B. The contributions which have been collected for the Six Traffic Improvements will remain committed for construction of the improvements identified in the adopted Capital Improvement Program; C. The purpose for which the contributions will be used is construction of the Six Traffic Improvements, as described above and in the 2008 - 2013 Capital Improvement Program, D. The contributions were collected to make the Six Traffic Improvements, which improvements will mitigate traffic impacts caused by the new development projects which paid the contributions, and E. The contributions which have been collected for the Six Traffic Improvements are needed for construction of the Six Traffic Improvements. PASSED, APPROVED, AND ADOPTED THIS 16th day of December 2008 AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk G:~Ab1600 -Impact Fees~FY 07-08Uesolution08.doc Mayor ATTACHMENT 2