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HomeMy WebLinkAboutItem 8.6 PublicFacilityFeeGuideCITY CLERK FILE # 390-10 7 AGENDA STATEMENT " CITY COUNCIL MEETING DATE: October' 19, 1999 SUBJECT: ATTACHMENTS: / RECOM1VIENDATION.~ Adoption of Public Facilities Fee Administrative Guidelines Report Prepared bv: Hlen C l~hz 1. Resolution Establishing. Public Facilities Fee Administrative Guidelines, including Exhibit A, Final Draft Public Facilities Fee Administrative Guidelines 2. Listing of Property Owners/Developers who were provided a copy of Draft Guidelines for Information and Comment Receive Staff Report and Adopt Resolution Establishing Public Facilities Fee Administrative Guidelines FINANCIAL STATEMENT: None DESCRIPTION: The City of Dublin has established a Public Facilities Fee to finance municipal public facilities to address the impacts caused by future development in the City of Dublin and Eastern Dublin. Such facilities include completion of the Civic Center office space, construction of a new library, relocation and expansion of the existing senior center, and acquisition and construction of neighborhood and community parks and community buildings. The Public Facilities Fee was originally adopted by Resolution 32-96 (March 26, 1996) and was recently revised by Resolution 60-99 (April 6, 1999). Section 11 of Resolution 60-99 provides for the adoption of administrative guidelines to establish procedures for calculation, reimbursement, credit or deferred payment and other administrative aspects of the Public Facilities Fee, as well as procedures for construction of designated facilities by developers. A similar provision was included in the resolution adopting the Eastern Dublin Traffic Impact, Fee, and the City Council recently adopted Traffic Impact Fee Administrative Guidelines. Staff has prepared proposed Public Facilities Fee Administrative Guidelines for consideration and adoption by the City Council. These Guidelines are modeled after the Traffic Impact Fee Administrative Guidelines, with modifications made to address the unique characteristics of the Public Facilities Fee. Many of the provisions of the Administrative Guidelines are taken directly from Resolution 60-99. The key elements of the Public Facilities Fee Administrative Guidelines are summarized below: F:\pff staff report. cc.doc COPIES TO: ITEM NO. Public Facilities Fee Administrative Guidelines October 19, 1999 Page 2 Public Facilities Fee Administrative Guidelines - Key Elements 'Imposition of Fee. ImpOsed on all new development. Imposed on non-residential additions of 500 square feet or more. Imposed on residential additions of units. Interrelation of Quimby Act Fees and Public Facilities Fees Under Chapter 9.28 of the Dublin Municipal Code, residential subdivisions must dedicate land or pay an in-lieu fee for community and neighborhood park purposes (Quimby Act Fees). When in-lieu fees are paid, these Quimby Act Fees are equal to the Community Parks, Land and Neighborhood Parks, Land portions of the Public Facilities Fee. When land is dedicated, a PFF credit may be granted. Effective Fee. The effective fee is the fee in place when the building penrat is issued. However, for residential subdivisions, the Community Parks, Land and Neighborhood Parks, Land portions of the Fee (Quimby Act Fees) are those in effect at the time the final map is approve& Fee Basis. The Fee for residential projects is charged on a dwelling unit basis. The Fee for non-residential projects is charged per square foot, with a different rate for office, commercial and industrial. The Guidelines provide aprocess for determining the appropriate fee for mixed-use projects. · Fee Adjustments. The Guidelines provide for periodic and automatic Fee adjustments as specified in Resolution 60-99. · Fee Exemptions. The Guidelines provide for exemptions from the Fee as specified in Resolution 60-99. Fee Credits and Reimbursement. The Guidelines allow the City to grant PFF credits to property owners/developers who dedicate land or construct and dedicate approved PFF facilities. These credits must be granted through a credit/reimbursement agreement between the City and the property owner/developer. The Guidelines establish the specific process for valuing, using and transferring the PFF credits and, further, provide that credits convert to reimbursement rights after ten years. The Guidelines include a process for the payment of reimbursement rights and specify that any outstanding' reimbursement rights terminate ten years after their creation. The Guidelines clearly state that neither credits nor reimbursement rights shall be increased for inflation or accrue interest. Construction of Designated Facilities by Developers. The Guidelines establish that, as a matter of policy, the City will design and construct community parks, community buildings, Iibraries, Civic Center improvements and the Eastern Dublin Aquatic Center. Developers 'may, with City approval, be permitted to design and construct neighborhood parks/squares and certain portions of community parks. Public Facilities Fee Administrative Guidelines October 19, 1999 Page 3 Other Issues. The Guidelines include provisions for recordkeeping, payment of fees, annual review of fee collection, and funds and accounting. Review Process The Final Draft of the Public Facilities Fee Administrative Guidelines was circulated to property owners and developers for review and comment on September 23, 1999. This list of property owners and developers is included with this staff report as Attachment 2. Comments were received from one interested property owner (Alameda County Surplus Property Authority). Where appropriate, modifications have been made to address the issue raised. Staff has responded to these comments specifically in writing. Recommendation The Public Facilities Fee Administrative Guidelines provide clear standards and procedures for managing the calculation, collection and use of these fees, as well as for the creation and use of credits and reimbursements. These Guidelines are consistent with the Administrative Guidelines already adopted by the City Council for the Eastern Dublin Traffic Impact Fee. It is recommended that the City Council adopt the Resolution Establishing the Public Facilities Fee Administrative Guidelines. RESOLUTION NO. - 99 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ESTABLISHING THE PUBLIC FACILITIES FEE ADMINISTRATIVE GUIDELINES WHEREAS, the City of Dublin has established a Pubic Facilities Fee applicable to development occurring in the Cit3: of Dublin and Eastern Dublin; and WHEREAS, the Public Facilities Fee was originally adopted by Resolution 32-96 (March 26, 1996) and revised by Resolution 60-99 (April 6, 1999); and WHEREAS, Section 11 of Resolution 60-99 provides for the adoption of administrative guidelines to establish procedures for calculation, reimbursement, credit or deferred payment and other administrative aspects of the Public Facilities Fee, as well as procedures for construction of designated facilities by developers; and WHEREAS, administrative guidelines have been prepared, which address the issues identified above and which are consistent with the specific provisions of Resolution 60-99 and existing laws and regulations; and WHEREAS, a final draft of the administrative guidelines was distributed to iracrested parties for review and comment prior to consideration by the City Council. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt the Public Facilities Fee Administrative Guidelines, attached hereto as Exhibit A and by reference made a part hereof. PASSED, ALPPROVED AND ADOPTED this day of ,1999. AYE S: NOES: ABSENT: ABSTAIZN: ATTEST: Mayor City Clerk ATTACHMENT CITY OF DUBLIN PUBLIC FACILITIES FEE ADMINISTRATIVE GUIDELINES (Final Draft October 19, 1999) I. Introduction/Overview These guidelines apply to the Public Facilities. Fee (hereafter known as: 'PFF', 'Fee' or 'Fees') adopted by the City of Dublin through Resolution 32-96 as amended by Resolution 60-99 and any subsequent replacement resolution. In addition, reference' is made to Chapter 9.28 of the Dublin Municipal Code, enacted pursuant to the Quimby Act (California Government Code Section 66477), which establishes requirements for parkland dedication (or in-lieu fees) for residential subdivisions. These requirements of Chapter 9.28 are interrelated with the Community Parks, Land component and, in some cases (Eastern and Western Dublin), the Neighborhood Parks, Land component of the Public Facilities Fee. The Public Facilities Fee includes the following ten categories: · Citywide: Community Parks, Land · Citywide: Community Parks, Improvements Citywide: Community Buildings · Citywide: Libraries · Citywide: Civic Center · Eastern Dublin: Neighborhood Parks, Land Eastern Dublin: Neighborhood Parks, Improvements · Eastern Dublin: Aquatic Center · Western Dublin: Neighborhood Parks, Land · Western Dublin: Neighborhood Parks, Improvements The administrative guidelines provide procedures for calculation of the Fee, calculation and use of credits and reimbursements, and other administrative aspects of the Fee. In addition, the guidelines include procedures for construction of desig-nated facilities by developers. The administrative guidelines establish the authority for providing credits and/or reimbursements to developers who construct and/or dedicate any of the land, public improvements or facilities for which the Public Facilities Fee is imposed (PFF Facilities). When PFF Facilities are constructed and/or dedicated by a developer, the developer shall be ~ven a credit to be applied against the Fee due for the development project. The amount of the credit shall be determined pursuant to EXHIBIT A Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 2 Section VI of these guidelines. If the amount of the credit is ~eater than the Fee due for the development project, the developer may use the credit toward the Fee for another development project or transfer the credit to another eligible developer in accordance with these guidelines. If the developer cannot use or transfer the credit within ten years, then the credit will convert to a reimbursement right. The combination of credit and reimbursement rights will terminate twenty years after the effective date of the agreement creating such rights, as provided for' in these guidelines. The application of these guidelines will at times refer to various reference documents adopted by the City of Dublin. These documents include the City's General Plan, the Eastern Dublin Specific Plan, the Public Facilities Fee Study, 1998 Update (Hausrath Economics Group), and various other fee studies and updates. Such reference documents are subject to change and may affect the application of these guidelines. II. Authority of City Manager To Interpret Situations Not Covered Should situations arise not covered by these guidelines, the City Manager will have the authority to determine how the resolutions, ordinances, guidelines and agreements will be administered. Such interpretations by the City Manager will be in writing. III. Interrelation of Quimby Act Fees and the Public Facilities Fee Under Chapter 9.28 of the Dublin Municipal Code, all residential subdivisions in the City of Dublin must, upon approval of the final map, dedicate or reserve' lands, pay fees in lieu, or a combination of both, for neighborhood and community park or recreational purposes (Quimby Act requirements or Quimby Act fees). Where fees are paid in lieu of land dedication, these Quimby Act fees are equal to the Community Parks, Land (Citywide) and Neighborhood Parks, Land (Eastern and Western Dublin only) components of the Public Facilities Fee. When dedication is made to satisfy a Quimby Act requirement, a PFF credit may .be granted in accordance with these guidelines. Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 3 IV. A. Fee Calculation Imposition of the Fee Except as exempted under subsection E. of this section, the Fee is imposed on all development in Dublin as described below: 1. All new development, including new construction of any building or structure (residential or non-residential); 2. Additions to non-residential buildings or structures which result in an increase of 500 square feet or more; 3. Additions to residential buildings or structures which increase the number of units (i.e. construction of a "Fanny unit"). The Administrative Services Department serves as the lead department to gather and coordinate the information necessary to calculate the Fee. The Community Development Department is responsible for determining the intended land use. Unless otherwise provided, the Fee will be collected with the payment for the building permit for the development project. " Effective Fee The Fee owed by a development project will be that in effect when the building permit is issued. This section shall be applicable whether the Fee is paid in cash or a credit is used. For residential subdivisions, the Community Parks, Land and Neighborhood Parks, Land components of the Fee, which are the fees under Chapter 9.28 of the Dublin Municipal Code (Quimby Act fees), are those in effect at the time the final map is approved. Basis for Calculating the Fee The Fee for residential development projects (single or multiple family) is calculated based upon the per dwelling unit fee for each of the applicable categories noted in Resolution 60-99 and/or any subsequent replacement resolution. The single-family rate is Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 4 charged for residential development projects constructed on property designated in the General Plan or Specific Plan for 6 or fewer units per acre. The multiple-family rate is charged for residential development projects constructed on property desig-nated in the General Plan or Specific Plan for 6.1 or more units per acre. The Fee for non-residential development is calculated as a specified amount for each square foot of building space for each of the applicable categories noted in Resolution 60- 99 and/or any subsequent replacement resolution. The fee rate varies for Commercial, Office and Industrial development projects, as defined in Resolution 60-99. The Fee for non-reSidential development will be charged for any addition to an existing building or structure if the addition exceeds 500 square feet. For non-residential development projects in which the land use is not included in the definition of Commercial, Office or industrial, the Community Development Director will determine which of these three categories is appropriate, maintaining as much consistency as possible with the definition of such terms2 For mixed-use non-residential development projects, the Community Development Director will determine the projected percentage of each of the three uses at the time the Final Map or other appropriate entitlement is approved. The Fee will be calculated on a pro-rata basis among the various rates stated for each different use. For example, a large sin~e building could be divided between office space and industrial warehouse space. If the uses are unknown at the time of obtaining a building permit and the building permit does not include adequate interior details to determine the intended use, the use for the initial fee calculation pro-poses will be assumed as industrial. Any additional Fee owed as a result of a different final use of the property will be calculated and collected at the time that a building permit is issued for interior tenant improvements. This fee calculation Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 5 shall be at the rate in effect at the time the building permit for tenant improvements is issued. No refund of the Fee will be given if the resulting uses are different from the projected land use. For mixed-use projects that contain both residential and non-residential portions, the Fee will be based upon the residential per dwelling unit fee schedule for the residential portion and the non-residential per square foot schedule for the non-residential portion. The non-residential portion will be allocated among the three non-residential uses as described above in these guidelines. Quasi-public uses (churches, non-profit organizations, etc.) will be subject to the Fee. For these uses, the Community Development Director will determine which of the three categories (Commercial, Office, Industrial) most appropriately reflects the land use and allocate the project to this category. Affordable housing projects developed by government agencies and non-profit entities will be subject to the same Fees that are assessed on private residential development. Fee Adjustments 1. Periodic Analysis and Revision of Fee. , The City will continue to conduct further study and analysis to determine whether the Fee should be revised. The City may revise the Fee to incorporate the findings and conclusions of further studies and standards as specified in Resolution 60-99 and/or any subsequent replacement resolution, as well as increases due to changes in construction costs and land values. The City will evaluate land values through an appraisal at least once every three (3) years, to be conducted by the Public Works Department. Automatic Adjustment in Fee. In years when the City does not revise the Fee as described above, the Fee shall be automatically adjusted, effective July 1, 2000 and each July 1 thereafter, as described below. The Administrative Services Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 6 Department will be responsible for calculating the fee adjustment with information provided by the appropriate City departments. a. The costs of construction of the PFF Facilities shall be increased/decreased by the annual percentage increase/decrease in the Engneering News Record' s Construction Cost Index (20-city average) for the month of April over the same Construction Cost Index for the month of April of the prior year. The Fee adjustment may be rounded to whole dollars. b. The Land cost per acre for the PFF Facilities shall be increased/decreased annually by the percentage increase/decrease between the land cost per acre in the most recent land appraisal (prepared for the City for 'purposes of adjusting the Fee) over the land cost per acre in the immediately preceding appraisal (prepared for the city for purposes of adjusting the Fee and using the same methodology), calculated as an annual increase/decrease. For example, if the appraised land value in Year One is $10/acre and in Year Two is $1 1/acre, that is an annual increase of 10% which will result in a yearly increase of 10%, until the Fee is revised as described in Section D.i., above. The Fee adjustment may be rounded to whole dollars. Exemptions from Fee The following types of development will be exempt from the collection of the Public Facilities Fee: 1. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a single family unit or another unit is added to an existing multi-family residential building. 2. Any replacement or reconstruction of an existing residential structure that has been destroyed or demolished, provided that the building permit for reconstruction is obtained within one year after the building was destroyed or demolished, unless Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 7 the replacement or reconstruction increases the square footage of the structure 50% or more. Any replacement or reconstruction of an existing non-residential structure that has been destroyed or demolished, provided that the building permit for new reconstruction is obtained within one year after the building was destroyed or demolished and there is no change in the land use designation of the property (as between Commercial, Office and Industrial). To qualify for this exemption, the replacement structure must be no larger than the original structure. If the replacement structure is larger than the original structure, then the Fee will be Charged on the incremental square footage above the square footage of the original structure. Any non-residential building or structure constructed on property on which a building or structure was demolished for which the Fee has been paid within the prior ten year period, provided the exemption shall be in the amount of the previously-paid Fee only and the applicant shall pay any additional amount based on the then-current Fee. Fee Collection Payment of the Public Facilities Fee for Non-Residential Development The Public Facilities Fee for non-residential development will be due and payable at the issuance of a building permit. The building square footage as identified on the building permit will be the basis for calculating the Fee. Amendments to a non-residential building permit which result in 500 additional square feet or more shall result in additional fees owed based on the added area. The Building and Safety Division will collect the Fee. Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 8 Payment of the Public Facilities Fee for Residential Development For residential subdivisions, the Community Parks, Land (Citywide) and Neighborhood Parks, Land (East and West Dublin) components of the Public Facilities are due at the time of final map approval pursuant to Chapter 9.28 of the Dublin Municipal Code. The balance of the Fee is due' as described in the following para~aph. If the City incorporates the PFF Facilities described in Resolution 60-99 into its annually adopted long term Capital Improvement Plan (CIP), then the Fee for residential development will be due and payable at the issuance of a building permit. Prior to the incorporation of these Facilities into the CIP, the Fee will not be due until the dwelling is issued a Certificate of Occupancy. The developer may voluntarily pay the full Fee when the building permit is issued or as otherwise appropriate under applicable law. The Building and Safety Division will collect the Fee. Payment of Fees in Excess of $50,000 When the mount of payment for the Public Facilities Fee exceeds $50,000 on any given day, payment shall be made in one of the following ways: 1) paid by check drawn on a bank within the State of California, 2) paid by cashier's check, or 3) if paid in same day funds by a wire transfer, the wire transfer must be pre-arranged with the Administrative Sewices Department. Payment of the Fee in Conjunction with Development Agreements The Fee can be collected at an earlier point of time than what is noted in this section if a~_reed to by a developer and the City within the terms of a Development A~eement. Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 9 Payment Records The Administrative Services Department will record the payment of Public Facilities Fees and related Quimby Act fees. Records will be maintained to comply with refunding requirements as prescribed by State Law. The Building and Safety Division will obtain a mailing address from each payee, as well as the applicable Assessor's Parcel Number, and will note the payee as the entity or person whose name appears as the applicant for the building permit. The Administrative Services Department will maintain the records for a period of ten years from their collection, unless a legal mandate exists for a longer retention. VI. Allotment of Developer Fee Credits The City understands the practicality of having developers construct and/or dedicate some of the PFF Facilities described in Resolution 60-99 and/or any subsequent replacement resolution. For this reason, the City will allot fee credits against the collection of the Fee for dedicating land or constructing and dedicating approved PFF Facilities. Fee Credit / Reimbursement Agreement Required The allotment of fee credits and/or provision for a reimbursement will only occur in accordance with a written credit/reimbursement agreement between the City and the developer responsible for the construction and/or dedication of the approved PFF Facilities. 1. All fee credits will be granted by use of a standard agreement approved by the City Attorney. 2. This credit/reimbursement agreement will be entered into at the time the improvements are bonded and/or the land is dedicated or irrevocably offered for dedication. The terms of this agreement may, at the City's discretion, be included in the agreement entered into with the City to secure certain public .improvements as contained on a Final Parcel Map or Final Subdivision Map. Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 10 The developer will pay an administrative fee, due on the effective date of the credit/reimbursement agreement, to be established in the City's Master Fee Schedule. The purpose of this administrative fee is to cover the administrative costs associated with establishing and monitoring the credit/reimbursement agreement. Any credits which are unused ten years following their creation shall convert to a right to reimbursement. The right to reimbursement terminates ten years after it is created. Neither a credit nor the right to reimbursement shall be increased for inflation or accrue interest2 Credits are transferable, with the written approval of the City Manager, provided the credit is transferred to a person/firm having a legal interest in real property within the area subject to the Fee and provided that the administrative transfer fee is paid, as specified in Section IX.A. of these guidelines. The developer will sig-n a certificate attached to the fee credit/reimbursement agreement attesting that they obtained a copy of these administrative guidelines and they were read and understood. VII. Calculating the Fee Credits For calculation purposes, the fee credits will be segregated into the following ten categories: * Citywide: Community Parks, Land · Citywide: Community Parks, Improvements · Citywide: Community Buildings · Citywide: Libraries · Citywide: Civic Center · Eastern Dublin: Neighborhood Parks, Land · Eastern Dublin: Neighborhood Parks, Improvements · Eastern Dublin: AqUatic Center · Western Dublin: Neighborhood Parks, Land · Western Dublin: Neighborhood Parks, Improvements . - Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 11 General The fee credit/reimbursement ageement will specify the PFF Facilities constructed and/or dedicated for a particular development project and will identify by category the total associated credits. The contributed PFF Facilities must be those described in Resolution 60-99 and/or any subsequent replacement resolution. There must be a minimum value of $50,000 in PFF Facilities dedicated before credits will be allotted to a developer. Determination of Value The Public Works Director will determine the value of the contributed PFF Facilities based upon improvement plans submitted by the developer and approved by the City. It is recog-nized that in some cases the scope of construction or dedication wilt not exactly match the precise size and total components included in a particular park or PFF Facility as shown in Resolution 60-99. The credits will be the lesser of the following: a) the estimated cost of PFF Facilities as noted in Resolution 60-99 and/or any subsequent replacement resolution; or b) the pro- rated value of the PFF Facilities using the cost estimates in Resolution 60-99 and/or any subsequent replacement resolution. The fee credits cannot exceed the cost estimates of the PFF Facilities in the most recent fee study and resolution. In no case shall the fee credits include facility financing costs. Illustrative Example 1: Assume that a developer contributes 10 acres of land for a planned 20 acre community park to offset the Fees due for the Community Parks, Land fee component. The last adopted fee study used. a standard cost estimate of $420,000 per acre for calculating the cost of improved community parkland. The fee credit due to the developer will be calculated using this cost estimate (10 acres * $420,000 per acre = $4~00,000). · Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 12 Illustrative Example 2: A developer constructing single family homes in Eastern Dublin contributes neighborhood park improvements valued at $200,000. The Neighborhood Parks, Improvements portion of the Fee for a single family home is currently $925 of the total Fee of $11,219. The developer must pay a Fee of $~0,294 for each single-family home (total Fee of $11;219 less credit of $925) until the $200,000 credit is used up. This credit will cover the Neighborhood Parks, Improvements component of the Fee for the first 2t6 single-family homes constructed ($200,000/$925=216.22). When the developer applies for the building permit for the 217th home, he or she will be~n paying this component of the Fee 'with the balance of the Public' Facilities Fee due for the project. VIII. A.' Use of Fee Credits Credits expire when used or 10 years from the date of the credit/reimbursement agreement, whichever occurs first. B. In the event the fee credits are unused 10 years after the effective date of the credit/reimbursement agreement, the fee credit shall convert to a reimbursement fight as provided for under Sections X and XI of these guidelines. C. The value of the credits in each category will be listed in the agreement and tracked by fee category as they are used by the developer. The City's Administrative Services Department will keep record of the unused credits and provide this information to the Building and Safety Division at the time fee credits are used. D. Credits earned by constructing or dedicating a certain category of PFF Facilities can only be used to offset fees for that category. The Fee for other categories will be paid by the · developer as specified in Section V of these guidelines. Fee credits will not be mixed between the fee categories. For example, unused credits from the Community Parks, Land component of the Fec cannot be used to offset the Libraries component of the Fee. Public Facilities Fee Administrative Guidelines Final Draft October i9, 1999 Page 13 , Only the developer who builds or dedicates the PFF Facilities will be entitled to the original or initial credits, until such time as they may be transferred in accordance with these guidelines. Fee credits cannot be used by the developer until the developer has: 1. With respect to the Community or Neighborhood Parks, Land components of the Fee, either dedicated the land or made an irrevocable offer of dedication of the land to the City; or 2. With respect to improvements, either a. Dedicated the improvements representing the credits to the City; or b. Provided the City with a performance bond and labor and materials bonds or other adequate security to insure that the improvements will be constructed according to the timeline established in the credit/reimbursement a~eement. The performance bond or other security shall be in an amount equal to 100% of the engineer's estimated cost to construct the improvements and the labor and materials bond shall be in an amount equal to 50% of the engineer's estimate. The bonds shall be written by a surety licensed to conduct business in the State of California and approved by the City' s City Manager. Illustrative Example: Assume a developer is' in the midst of completing the construction of improved parkland, which will be dedicated to the City to offset a portion of the Public Facilities Fee. The developer supplies the City with land title conveyance, a performance bond and a labor and materials bond for the completion of the improved parkland. Fee credits can be used in advance of completing the improvements, since the City is assured that the land will be dedicated and the improvements will be completed. Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 14 /J Transferring of Credits The ori~nal holder of credits can request a transfer of credits to a person owning an interest in property that is subject to the same category of the Public Facilities Fee. Such transactions shall be subject to an administrative transfer fee, which shall cover the City' s administrative costs associated with the credit transfer. The administrative transfer fee shall be established in the City's Master Fee Schedule. There is no limit on the number of times that credits can be transferred between developments. X. Reimbursement Rights Reimbursement rights are created from the conversion of fee credits, which occurs 10 years after the initial date of the credit/reimbursement agreement creating the fee credit. Reimbursement rights are subject to the following specific guidelines: A. Reimbursement will be only from funds collected as the Public Facilities Fee and will not come from the City's General Fund. B. The City will determine the amount of funds available for reimbursement on an annual basis. C. The procedure for prioritizing reimbursements is described in Section X/of these guidelines. Process for Payment of Reimbursement Rights Determination of Funds Available for Reimbursement Within 180 days of the end of each fiscal year, the Administrative Services Department will make an accounting of all Public Facilities Fees collected for the fiscal year that just ended. The Administrative Services Department will also determine the amount of Public Facilities Fee funds ~hat are unspent and unencumbered as of the close of the fiscal year. For funds that are unspent and unencumbered, the City Manager or. desig-nee will allocate the necessary amount to be used to finance needed PFF Facilities, as defined in Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 15 the Public Facilities Fee Resolution. The remaining funds will be designated as the reimbursement set-aside, which will be used to reimburse holders of reimbursement rights for PFF Facilities already contributed, if any such reimbursement rights exist. Allocating the Reimbursement Set-Aside to Outstanding Reimbursement Rights In the event that the City designates that a reimbursement set-aside is available, fifty percent will be used to pay the oldest outstanding reimbursement fight. If the oldest right is paid off before this portion of funds is entirely consumed, then the balance of the 50% wilt go toward the next oldest right. This portion of the reimbursement set-aside will be allocated according to this niethod~until it iS eXhausted. The other half of the reimbursement set-aside will be allocated to all reimbursement fights on a pro-rata basis according to their amounts outstanding, including the remaining unreimbursed portion of the oldest agreement. Unused reimbursement set-aside funds will not be carried over to another fiscal year. The Administrative Services Department will be responsible for calculating the allocation of reimbursement set-aside funds to outstanding reimbursement rights. The following example illustrates this allocation: Illustrative Example.' During one fiscal year, the City determines that there are unspent unencumbered Fees in the amount of $88,000. The total outstanding reimbursement rights are $100,000 as detailed below: Developer A (the oldest agreement): $50,000 Developer B: $20,000 Developer C: $30,000 Of the unspent, unencumbered Fees of $88,000, the City Manager allocates $44,000 to construct PFF Facilities that have not been built by developers and designates $44,000 as the reimbursement set-aside to reduce current reimbursement obligations. $22,000 (50% Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 16 I? of the $44,000) of the reimbursement set-aside is used to pay Developer A, who holds the oldest agreement. Developer A now has $28,000 of outstanding reimbursement rights (Be~nning balance of $50,000 less the $22,000 payment). The other half of the reimbursement set-aside ($22,000) is allocated proportionally to all three parties who currently hold reimbursement rights as follows: Holder Of Current Value Of Percent of Total Amt. of $22,000 Reimbursement Reimbursement Reimbursement Reimbursements Reimbursement Balance Owed Outstandin~ Distributed Remaininto Developer A $ 28,000 35.90% $ 7,898.00 $20,102.00 Developer B 20,000 25.64% $ 5,640.80 $14,359.20 DeVeloper C ' ' 30,000 38.46% $ 8.461.20 $21.538.80 TOTAL $ 78,000 $22,000.00 $56,000.00 XII. A. Other Miscellaneous Administrative Guidelines Procedures for Construction of Designated Facilities by Developers As a matter of policy, the City will design and construct community parks, community buildings, libraries, Civic Center improvements and the Eastern Dublin Aquatic Center. Developers may, with City approval, be permitted to design and constrUct neighborhood parks/squares and certain portions of community parks. The desig-n and construction materials/methods must be in accordance with standard City, specifications, and City inspectors shall be responsible for construction inspection throughout the duration of the construction period. The PFF Facilities to be constructed or dedicated by the developer must be submitted for approval in writing to the Parks and Community Services Director no later than thirty calendar days prior to the approval of the Final Map on the development project. The submittal of the improvement plans and/or description of area to be dedicated shall be in sufficient detail as determined by the Parks and Community Services Director. The Parks and Community Services Director will attempt to respond to the request within twenty business days. The developer constructing or dedicating PFF Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page 17 /37 Facilities in lieu of paying a portion of the Fee must post a performance bond and a labor and materials bond before the issuance of any grading and/or building permits for the construction of the PFF Facilities. Refunds Refunds of the Fee for withdrawn applications will be done in accordance with existing procedures for paid building permits. · Payable to entity making payment or property owner of record. · Payable in accordance with State law. · Not applicable to letters of credit, surety bonds or other instruments taken to secure payment. ~nnual Review of Fee Collection The City has existing procedures for complying with State law with regard to accounting for developer fees. The Administrative Services Department will maintain records to provide the following items: · A brief description of the Public Facilities Fee; · An identification of the improvements and of the the percentage of cost improvements which the Public Facilities Fee will be expended upon; and For PFF Facilities which are funded and yet to be completed, an identification of an expected date by which construction of the Facilities will commence. D. Funds and Accounting "Public Facilities Fee Administrative Guidelines Final Draft October 19, 1999 Page i8 /? The City will incorporate the following items into its accounting procedures, which are the responsibility of the Administrative Services Department: · The City will maintain a separate fund for the collection and expenditure of Public Facilities Fees. · The City will allocate interest to fees collected in the fund based upon month end cash balances. · The City will identify in accordance with State Law the be~nning and ending balance of the funds held for the Public Facilities Fee as of fiscal year end. The City will'identify the amount of fees collected and interest earned in each fiscal 'year'for Publi~c Facilities FeesZ The City will provide a description and accounting of any interfund transfers made by the Public Facilities Fee fund. Although it may be authorized by State law, it shall not be City policy to loan PFF monies for another public purpose. The City will calculate reimbursements annually within 180 days of each fiscal year end. The City will file of an annual accounting of all development impact fees, including the Public Facilities Fee, with the City Council and for public inspection within 180 days of each fiscal year end. City of Dublin Distribution List for Draft Public Facilities Fee Administrative Guidelines Sent September 23, 1999 Joe Bledsoe Kindercare Learning Centers 43276 Christy Street Pleasanton, CA 94538 Mike Maples Trimark Development 4135 Blackhawk Circle Suite 280 Danville, CA 94506 Robert O'Gorman Opus West Corporation 6130 Stoneridge Mall Road #115 Pleasanton, CA 94588 Don Ganse Shea Properties 667 Brea Canyon Road Suite 30 Walnut, CA 91788-1536 Craig Champion Summerhill Homes 777 California Avenue Palo Alto, CA 94304 Michael Collins SGPA Architects 200 Pine Street Studio 500 San Francisco, CA 94104 James Parsons Schaefer Heights, inc. 155 Filbert Street - Suite 200 Oakland, CA 94607 Patrick Cosmnzo, Jr. Greenbriar Land Co. 4340 Stevens Creek Blvd., #240 San Jose, CA 95129 Kevin Peters Shea Homes 2177 Las Positas CL, Suite G Livermore, CA 94550 Adolph Martinelli Alameda County Planning Dept. 224 West Winton, Room 151 Hayward, CA 94544 Peter MacDonald 400 Main Slreet Suite 210 Pleasanton, CA 94566-7371 Jim Tong 6601 Owens Drive, Suite 100 Pleasanton, CA 94588 Brian Griggs Griggs Resource Group 3470 Mt. Diablo Btvd. Suite A205 Lafayette, CA 94549 Bill Berry Staubach Retail Services/Auto Nation 2030 Main Street, Suite 350 Irvine, CA 92614 Jonathon Wanslaw Roll Real Estate Group 4 125 Blackhawk Plaza Circle, #200 Danville, CA 94506 Lou Vasquez Archstone Communities 22320 Foothill Blvd., Suite 220 Hayward, CA 94541 John Wong Mission Peak Company 40480 Encyclopedia Circle Fremont, CA 94538 Marry Inderbitzen, Attorney 5510 Sunol Blvd. Suite B Pleasanton, CA 94566 Pat Cashman, Project Director Alameda County Surplus Property Authority 224 West Winton, Room 151 Hayward, CA 94544 John DiManto Dublin Land Company 1210 Coleman Avenue Santa Clara, CA 95050 Marjorie Roller 5274 Tassajara Road Pleasanton, CA 94588 Clark Morrison Morrison & Forster 101 Ygnacio Valley Road, ~450 Walnut Creek, CA 94596 John Paynter Toll Brothers 1501 Bolllnger Canyon Road, Suite B San Ramon, CA 94583 Ted Fairfield 5510 Sunol Btvd., Suite B Pleasanton, CA 94566 Patrick and Carolyn Adams 5378 Tassajara Road Pleasanton, CA 94588 ATTACHMENT 2