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HomeMy WebLinkAboutItem 8.2 E. DublinTraffic Impact Fees (2) "" # CITY CLERK File # D(2][g][Q]-[2J[Q] . AGENDA STATEMENT CITY COUNCIL MEETING DATE: (February 16, 1999) SUBJECT: Adoption of Administrative Guidelines Related to Collection And n...n ;\ccounting For The Eastern Dublin Traffic Impact Fees W"'(Report Prepared by: Paul S. Rankin, Assistant City Manager) A TT ACHMENTS: 1. Outline of Key Elements In Guidelines 2. Listing of Property Owners / Developers Contacted For Input 3. Resolution Adopting Guidelines (Including Exhibit A. Final Draft Guidelines) RECOMMENDA TION: ~ve Staff Report and adopt Resolution Establishing Guidelines. FINANCIAL STATEMENT: None DESCRIPTION: The City Council has established an Eastern Dublin Traffic Impact Fee (TIP), which is designed to assure the construction of over $120 million in Traffic Improvements, required . to address the proportionate share of improvements required as a result of development. The current fee was enacted through the adoption of Resolution No. 41-96. Section 11 of Resolution No. 41-96 specifically provided for the development of Administrative Guidelines. The resolution states that the purpose of the guidelines is to provide procedures for reimbursement, credit, or other administrative aspects of the Fee. The adoption of standard guidelines will also assist in streamlining the language required in individual Development Agreements. Several of the principles contained in the recommended guidelines are based on the application of TIP issues in recent Development Agreements have been structured. Review Process In May of 1998 Staff circulated a set of Draft Guidelines for review and comment by the Development Community. Four responses were received which suggested modifications and/or identified areas which were not clear. Staff reViewed the input and where appropriate, the guidelines were modified. Each of the four representatives submitting comments were also provided with a detailed response to each issue raised. Based upon this input a Final Administrative Draft was released in January 1999(see distribution list Attachment 2). Staff requested that written comments be delivered not later than February 1, 1999. As of February 10, 1999 no responses were received. Recommended Guidelines Attachment 1 highlights the key procedural issues addressed by the Guidelines. The Traffic Impact Fee program is designed as a financing program to assure that Traffic Impacts from new development are . COPIES TO: ITEM NO. 8.2 Hlcc-formslagdastmt.doc appropriately addressed. The program also assures that the only source of repayment is from Impact Fees collected from developing properties. Due to the fact that the entire area will not develop all at one time it is assumed that some of the early development will need to oversize area infrastructure compared to what may be required by a specific project. For example, a large office complex may generate traffic volumes requiring 1.25 lanes. As a . practical matter, a full two lanes will need to be constructed initially with the Developer constructing the improvements receiving "Credit" for the "oversized" infrastructure. Otherwise the City would need to wait until development plans were approved and fees paid from a much larger area in order for the first development to proceed. This type of advance also benefits the Developer community in allowing development to occur. The developer advancing these facilities receives the economic benefit from their property much sooner than would otherwise be possible. Although the Guidelines spell out administrative procedures such as how the fee is calculated and collected; a significant portion of the document establishes procedures for the establishment and use of Credits. The Guidelines establish a Credit which expires 10 years after it is created. Any expired credits (i.e. credits which were not used 10 years after they were created) automatically convert to a 10 Year Right to Reimbursement. The value of the Credit is established at the time the improvements and/or right of way are assured of being constructed. The TIP Resolution No. 41-96, explicitly states that Credits will be fixed and do not accrue interest. The Guidelines also propose a reimbursement formula which distributes available funds among all holders of Reimbursement Rights. Recommendation Staff recommends that the City Council adopt the Resolution Establishing the Eastern Dublin Traffic Impact Fee Guidelines and direct Staff to implement all provisions in the administration of the Traffic Impact Fee Program. . . -J-- . / o/f )0 OUTLINE OF KEY CONSIDERATIONS CONTAINED IN RECOMMENDED ADMINISTRATIVE GUIDELINES FOR TRAFFIC IMPACT FEE CREDITS I REIMBURSEMENTS FEBRUARY 1999 1. APPLICATION / CALCULATION OF FEES . . Apply to each 500 square feet of new non-residential construction in Eastern Dublin. . The fee resolution designates the potential land use categories and trip generation for non-residential uses. . If a non-residential use is not identified in the adopted list as determined by the Public Works Director, a specific traffic study will be undertaken at the Applicant's expense to determine the trip generation. . Fees are collected for Residential Structures on a per unit basis. . Fees owed are calculated at the time a Building Permit is obtained. (Except for special conditions pertaining to Non-Residential Mixed Use Projects) . Fees for known uses within a Mixed Use Non-Residential Project are collected based upon the designation made by the Community Development Director (i.e. a large building divided between office and warehouse with a known user at the time the permit is obtained.) . Non-Residential Mixed Use Projects. where the end-use is not known at the time of the initial Building Permit will be initially collected based on the trip generation rate of "Industrial Without Retail". Subsequent collections based on any difference owed for the final use. will be made as permits are obtained for tenant improvements. . Exemptions are currently granted for the same purposes as were identified in Resolution 41-96. which adopted the Traffic Impact Fee. . Partial Exemptions are established for a land use where development has paid fees and within a 10 year period. the project is demolished and a new land use is developed. A "credit" would be given based on the original fees paid. n. TTh1ING OF PAYMENT OF FEES . . The fee is paid at the time of the Building Permit. . Payment of fees in excess of $50,000 shall be in the form of same day funds (i.e. written on a California Bank. a cashiers check. or federal wire transfer.) . Records will be made identifying persons paying the fees and the applicable parcel number. ATTACHMENT 1 :1' ~ ;'D OUTLINE TIF ADMINISTRATIVE GUIDELINES Page 2 of2 III. ESTABLISHMENT OF FEE CREDITS . · The Guidelines provide for the establishment of a standard form agreement addressing the amount of the initial Credit. · Credi ts for Improvements and or Right of Way shall have a term of 10 years. · Credits may be transferred to other entities obligated to pay Eastern Dublin Traffic Impact Fees upon written submittal of a Transfer Agreement. · The Guidelines shall not apply to any credits / reimbursements obtained by Alameda County and/or the Alameda County Surplus Property Authority as a result of the 1991 Roadway Agreement and the 1991 Freeway Improvement Agreement. N. HOW FEE CREDITS ARE CALCULATED · Fee Credits shall be granted and tracked in the same categories as the established Eastern Dublin Traffic Impact Fee (i.e. Category 1 - Infrastructure for which the Eastern Dublin Specific Plan Area is 100% responsible; Category 2 - Infrastructure which will be jointly financed by Eastern Dublin TIF and contributions from outside eastern Dublin; Category 3 : (Currently suspended from collection as this is the Regional Component which was replaced by the Tri- Valley Transportation Development (TVTD) Fee.) . · Credits earned by constructing or dedicating a certain category of improvements can only be used to offset fees for that category. · The amount of the Credit shall use the unit cost estimated in the current Traffic Impact Fee Study multiplied by the area to be constructed and/or dedicated in the Improvement Plans. · Credits are granted only to the Developer who builds or dedicates the TIP facilities. until such time as they may transferred as allowed under the Guidelines. · Fee Credits are only granted after the facility is constructed or dedicated. unless performance bonds have been provided in specified amounts. N REIMBURSEMENT RIGHTS · After 10 Years any unused credits subject to the Guidelines automatically convert to a reimbursement right. which runs for a subsequent 10 year period. · City shall annually assess whether funds are available to make payments towards existing Reimbursement Rights. · In the event that funds are available, the Guidelines provide for distribution to all holders of Reimbursement Rights. with the oldest obligation receiving a larger percentage of the annual disbursement. . ? -/ "',--., J -/ v-"---- . DISTRIBUTION - FINAL ADMINISTRATIVE DRAFT TRAFFIC IMPACT FEE GUIDELINES Attention: Patrick Costanzo. Jr. Greenbriar Land Co. 4340 Stevens Creek Blvd #240 San Jose, CA 95129 Attention: Steve- Pieters ESA Management,Inc. 58 Mitchell Boulevard San Rafael, CA 94903 Attention: Kevin Peters Shea Homes 2177 Las Positas Ct, Suite G Livermore, CA 94550 Mr. Adolph Martinelli Alameda Co. Planning Dept. 224 W. Winton, Room 151 Ha ard. CA 94544 Attention: G. Belew or H Finlay JPI Westcoast Dev. Inc. 90 The Embarcadero an Francisco. CA 94105 Attention: Fred Walke Microdental Labrotories 6665 Amador Plaza Road Dublin, CA 94568 Mr. Peter MacDonald 400 Main Street, Suite 210 Pleasanton, California 94566-7371 Jim Tong 6601 Owens Drive, Suite 100 Pleasanton, Ca 94588 Mr. Brian Griggs Griggs Resource Group(PeopleSoft) 3470 Mt Diablo Blvd., Ste A205 Lafayette. California 94549 . Attention: John Greer Opus Southwest. Corp 6130 Stoneridge Mall Rd #115 Pleasanton, CA 94588 Attention: Bill Berry Staubach Retail Svcs/AutoNation 2030 Main Street. Suite 350 Irvine, CA 92614 Attention: Michael Parker Koll Real Estate Group 4125 Blackhawk Plaza Cir. #200 Danville, CA 94506 Attention: John Wong Mission Peak Company 245 Sinclair Frontage Rd Mil itas. CA 95035 Attention: Lou Vasquez Archstone Communities 22320 Foothill Blvd, Suite 220 Ha ard. CA 94541 Marty Inderbitzen, Attorney 5510 Sunol Blvd., Suite B Pleasanton, California 94566 Mr. Pat Cashman. Project Director AI. Co. Surplus Prop. Authority 224 West Winton Avenue. Rm 151 Hayward, California 94544 Attention: Tim Miller Argonaut Holdings.Inc/GM 39465 Paseo Padre Fremont, CA 94538 Attention: Mr. John DiManto Dublin Land Company 1210 Coleman Avenue Santa Clara. CA 95050 Ms. Marjorie Koller 5274 Tassajara Road Pleasanton, CA 94588 Mr. Clark Morrison Morrison & Foerster 101 Ygnacio Valley Rd #450 Walnut Creek, CA 94596 Attention: Jon Paynter Toll Brothers 1501 Bollinger Cyn Rd Ste B San Ramon, CA 94583 Ted Fairfield 5510 Sunol Blvd., Suite B Pleasanton, California 94566 Mr. Patrick and Mrs. Carolyn Adams 5378 Tassajara Road Pleasanton. California 94588 ATTACHMENT 2 .tj ~ ?,D RESOLUTION NO. ~ 99 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********* . ESTABLISHING ADMINISTRATIVE GUIDELINES RELATED TO EASTERN DUBLIN TRAFFIC IMPACT FEES WHEREAS. the City Council has Established a Traffic Impact Fee (TIP) applicable to development occurring within the Eastern Dublin Specific Plan Area; and WHEREAS. the current TIP was adopted in April 1996 with Resolution 41-96; and WHEREAS. Section 11 of Resolution 41-96 provides for the future adoption of Administrative Guidelines by City Council Resolution; and WHEREAS. the intent of the Guidelines is to provide procedures for reimbursement. credit. or other administrative aspects of the Traffic Impact Fee Program; and WHEREAS. Guidelines have been prepared which address common issues related to the collection of the TIP and administration of Credits; and WHEREAS. the Guidelines as prepared are consistent with the requirements of Resolution 41-96 . and existing laws and regulations; and WHEREAS. "Draft Copies" of the Guidelines were distributed to Interested Parties for their 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 Guidelines attached hereto as Exhibit A and by reference made a part hereof. PASSED. APPROVED AND ADOPTED this 16th day of February. 1999. AYES: NOES: ABSENT: ABST AlN: Mayor ATTEST: . City Clerk G:lmpactFee/GuideslCnc1adptlresoadopt.doc ATTACHMENT 3 . 5~ ~D CITY OF DUBLIN EASTERN DUBLIN TRAFFIC IMPACT FEE ADMINISTRA TIVE GmDELINES (Final Recommended February 16, 1999) I. Introduction/Overview These guidelines apply to the Eastern Dublin Traffic Impact Fees (hereafter known as the 'Fee' or 'Fees') adopted by the City of Dublin through Resolution 41-96 and any subsequent replacement resolution. The Eastern Dublin Traffic Impact fee includes three categories of improvements and facilities. . Category 1 improvements and facilities are those located exclusively in the Eastern Dublin Specific Plan area. . Category 2 improvements and facilities are those projects to which Eastern Dublin developers contribute a proportionate share. including projects located in other areas of the City. . Category 3 improvements and facilities are those of a regional nature. (NOTE: Category 3 Fee suspended effective September 12. 1998. as long as Tri-Valley . Transportation Development Fee remains in place.) . 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 designated 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 improvements and facilities for which the Eastern Dublin Traffic Impact fee is imposed (TIP facilities). When such public improvements and facilities are constructed and/or dedicated by a developer. the developer shall be given a credit to be applied against the Fees due for the development project. The amount of the credit shall be determined pursuant to Section VI of these guidelines. If the amount of the credit is greater than the Fees due for the development project. the developer may use the credit toward the Fees for another development project or transfer the credit to another eligible developer in Eastern Dublin 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. EXHIBIT A Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16. 1999 Page 2 6' ~ ,),D . 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 most recent Traffic Impact Fee Study. and various other fee studies and updates. Such reference documents are &ubject 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. Fee Calculation A. Imposition of Fees Except as exempted under subsection D. of this section. Fees are imposed on all . development in Eastern 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 "granny 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. The Public Works and Engineering Departments are responsible for determining the number of vehicle trips assigned to the project. Unless otherwise provided. the Fee will be collected with the payment for the building permit for the development project. . . . . Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16. 1999 Page 3 i1 J ;-0 / / ",) B. Effective Fees The Fees owed by a development project will be those in effect when the building permit is obtained. This section shall be applicable whether the fees are paid in cash or a credit is used. C. Basis for Calculating Fees The Fees for residential development projects will be calculated based upon the per unit fee for each of the categories noted in Resolution 41-96 (i.e. Low Density Residential, Medium Density Residential. MediumlHigh Density Residential. High Density Residential) and/or any subsequent replacement resolution. The Fees for non-residential development are calculated on a per average weekday vehicle trip basis. The number of average weekday vehicle trips for each type of development is determined by the land use categories specified in Exhibit E of Resolution 41-96. However, if the Public Works Director determines that the land use of the development project is not appropriately reflected on Exhibit E of Resolution 41-96, then the Public Works Department will undertake a specific traffic study. to be paid for by the applicant. for the purpose of determining the estimated trip generation of the proposed development project. Fees for non-residential development will be charged for any addition to an existing building or structure if the addition exceeds 500 square feet. For mixed-use non-residential development projects. the Community Development Director will determine the projected percentage of each use 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 single building could be divided between commercial 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 purposes will be assumed as "Industrial without Retail". Any Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16. 1999 Page 4 7 ~-j vJ.D . additional Fees 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 shall be at the rate in effect at the time the building permit for tenant improvements is issued. No refund of Fees will be given if the resulting uses are different from the projected land use. The average weekday trip generation rate for quasi-public uses. which is not appropriately reflected on the "Estimated Weekday Vehicle Trip Generation Rate" schedule that was adopted as part of the Traffic Impact Fee Resolution (Exhibit E to Resolution 41-96). as determined by the Public Works Director. will be established by a project specific traffic study. This study will be conducted by the City (Public Works Department) and paid for by the project applicant. 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. . D. Exemptions 1. Total Exemption. The following types of development will be exempt from the collection of Traffic Impact Fees: a) 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 building. b) 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 the replacement or reconstruction increases the square footage of the structure 50% or more. . . . . Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16. 1999 Page 5 r; ~ /-D c) 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 the reconstructed building would not increase the destroyed or demolished building's trips based on "Estimated Weekday Vehicle Trip Generation Rate" as applied to the original building. 2. Partial Exemption. A partial exemption may be granted based on prior Fees paid in the situation of a change in the type of use as described below: If within 10 years of paying Eastern Dublin Traffic Impact fees for a specific development project, the project is demolished and replaced by a new type of development, an exemption may be given for up to the amount which was paid by the prior development project. Proof of payment shall be obligation of the individual/entity requesting the exemption. The new development shall not accrue any unused credit or reimbursement rights, in the event that the replacement project would result in a lower Fee. Any change in use outside of the 10 year period stated shall be obligated to pay the entire Fee. IV. Fee Collection A. Payment of Traffic Impact Fees for Non-Residential Development The Traffic Impact Fee for non-residential development will be due and payable at the issuance of a building permit and will be collected by the Building and Safety Division. The number of estimated average weekday vehicle trips. determined as described in Section III.C., above, multiplied by the non-residential fee per trip. will be the basis for the collected fee. The square footage or other appropriate measure as identified on the building permit will be the basis for determining the number of trips on Exhibit E of Resolution 41-96. Following is an example: Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16. 1999 Page 6 /0 . =;' ';z; . Non-Residential Fee Example: Assume that the development project is a 15,540 square foot commercial office building. The estimated weekday vehicle trip generation rate for this type of development is 20 trips per 1,000 square feet, and the Fee IS $360 per trip for non-residential development. FEE CALCULATION: 15.540 square feet/l,OOO square feet = 15.54 x 20 trips = 310.8 trips x $360 per trip = $111,888 Traffic Impact 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. B. Payment of Traffic Impact Fees for Residential Development If the City incorporates the facilities described in Resolution 41-96 into its annually adopted long term Capital Improvement Plan (CIF), then the Traffic Impact Fees for residential development will be due and payable at the issuance of a building permit. Prior to the incorporation of these facilities into the CIF, 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. . c. Payment of Fees in Excess of $50,000 When the amount of payment for Traffic Impact Fees 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 City's Finance Division. D. Payment of Fees in Conjunction with Development Agreements The Traffic lmpact Fees can be collected at an earlier point of time than what is noted in this section if agreed to by a developer within the terms of a Development Agreement. . . . . Eastern Dublin Traffic Impact Fee.Draft Administrative Guidelines February 16. 1999 Page 7 ;1 0 "0 /I E. Payment Records The Administrative Services Department will record the payment of the Traffic Impact Fees. Records will be maintained to comply with refunding requirements as prescribed - by State Law. The Administrative Services Department 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 Finance Division will maintain the records for a period of ten years from their collection, unless a legal mandate exists for a longer retention. V. Allotment of Developer Fee Credits The City understands the practicality of having developers construct and/or contribute some of the TIP facilities described in Resolution 41-96 and any subsequent replacement resolution. For this reason. the City will allot fee credits against the collection of Fees for constructing or contributing TIP facilities. A. 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 of the TIP facilities or dedication of TIP right of way. 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 secured and/or the right-of way is accepted 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. Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16. 1999 Page 8 / cJ .~ ;l> . 3. 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. 4. 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. 5. Neither a credit nor the right to reimbursement shall be increased for inflation or accrue interest. 6. 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. . 7. The developer will SIgn a certificate attached to the fee credit/reimbursement agreement attesting that it obtained a copy of these administrative guidelines and they were read and understood. B. Applicability of Administrative Guidelines to Pre-Existing Credits Allotted to the Alameda County Surplus Property Authority These guidelines do not apply to existing fee credits to which the Alameda County Surplus Property Authority is entitled under the terms of the Agreement between the City of Dublin. the City of Pleasanton, the County of Alameda and the Surplus Property Authority regarding coordination of certain Freeway Improvements dated March 12. 1991. . Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16. 1999 Page 12 It ~/ ~o --J . 2. Provided the City with a performance bond and labor and materials bonds or other adequate security to insure that the improvements will be constructed prior to the first Certificate of Occupancy for any building that is a part of the project. 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 certain street improvements, which will be dedicated to the City to offset a portion of the Traffic Impact Fee. The developer supplies the City with a right of way conveyance, a performance bond and a labor and materials bond for the completion of the street improvements. 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. IX. Transferring of Credits A. The original 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 Traffic Impact 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. B. 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: . . . Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16. 1999 Page 11 / ~ / p,u ~ :J VII. Use of Fee Credits A. 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 following 10 years from the date of the credit/reimbursement agreement. the fee credit shall convert to a reimbursement right 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 Finance Division will keep record of the unused credits and provide this information to the Building Safety Division at the time fee credits are used. D. Credits earned by constructing or dedicating a certain category of improvements can only be used to offset fees for that category. The balance of the Traffic Impact Fee, which is to be used for other categories of improvements. will be paid by the developer as specified in Section N of these guidelines. Fee credits will not be mixed between the fee categories. For example. unused credits from Category 1 portion of the Traffic Impact Fees cannot be used to offset amounts due for Category 2 and Category 3. E. Only the developer who builds or dedicates the TIP facilities will be entitled to the original or initial credits. until such time as they may be transferred in accordance with these guidelines. VIII. Use of Fee Credits Requires Completion of Facility or Performance Bonds Fee credits cannot be used by the developer until the developer has either: 1. Dedicated the land or improvements representing the credits to the City; or Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16, 1999 Page 10 If d ;J-D :J The credits will be the lesser of the following: a) the estimated cost of the improvements as noted in Resolution 41-96 and/or any subsequent replacement resolution; or b) the pro- rated value of the improvement using the standard cost measurements in Resolution 41- 96 a!ld/or any subsequent replacement resolution. The fee credits cannot exceed the cost estimates of the improvements in the most recent fee study and resolution, In no case shall the fee credits include facility financing costs. Illustrative Example I: Assume that a developer dedicates land for the partial widening of a major street to offset the Traffic Impact Fees due from a development project. To qualify for a credit. this roadway widening project must be included in the TIP. The land dedication to be applied for a fee credit shall not include improvements immediately adjacent to the development project, as these improvements are entirely the responsibility of the developer and are not to be funded by the Traffic Impact Fee. Resolution 41-96 used a standard cost measurement of $7 per square foot for right of way dedication in calculating the Traffic Impact Fees. The fee credits due to the Developer can be calculated by determining the square footage of the land to be dedicated multiplied by this per square foot cost measurement. Illustrative Example 2: A developer constructing single family homes contributes traffic signal improvements (Category 1 improvement) valued at $200,000. Assume that the Traffic Impact Fee totals $4.182 per home. which is comprised of the Category 1 portion of $2,930 and the Category 2 and 3 portions of $1,252. The credit of $200,000 can only be used against the developer's Category 1 Fee of $2.930 per home. which will cover approximately 68.25 homes. When the building permit is issued for the 69th home. the developer will have used up the credit and will have to begin paying the Category 1 Fee. The Category 2 and 3 portions of the Fee must be paid at the issuance of each building permit for all homes included in the development. as the Category 1 credit cannot be used to offset these portions of the Fee. . . . . . . Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16. 1999 Page 9 / g ~ ;ZD These guidelines do apply to existing fee credits to which the Alameda County Surplus Property Authority is entitled under development agreements entered into between January 1. 1995 and the effective date of these guidelines, to the extent provided for in a specific fee credit/reimbursement agreement to, ~e entered into between the City and the Alameda County Surplus Property Authority. VI. Calculating the Fee Credits For calculation purposes. the fee credits will be segregated into the following categories: Category 1: Eastern Dublin Traffic Improvements Category 2: Citywide Traffic Improvements Category 3: Regional Transportation (NOTE: Category 3 Fee suspended effective September 12, 1998. as long as Tri-Valley Transportation Development Fee remains in place.) A. General The fee credit/reimbursement agreement will identify the total credit by category for TIP facilities constructed or right of way dedicated for a particular development project. The contributed land or improvements must be the facilities described in Resolution 41-96 and/or any subsequent replacement resolution. There must be a minimum value of $50.000 in improvements and/or right of way dedicated before credits will be allotted to a developer. B. Determination of Value The Public Works Director will determine the value of the contributed facilities based upon improvement plans submitted by the developer and approved by the City. which plans shall quantify the size of the TIP facilities to be constructed or dedicated. It is recognized that in some cases the scope of construction or dedication will not exactly match segments shown in the TIP Report. . . . Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16. 1999 Page 13 /:J }D c:;-( J A. Reimbursement will be only from funds collected as Eastern Dublin Traffic Impact Fees or from fees collected by Contra Costa County and paid to Dublin for any improvements also included in the Eastern Dublin Traffic Impact Fee, and will not come from the City's General Fund. B. The City will determine the amount of funds available for reimbursement in each of the categories on an annual basis. C. The procedure for prioritizing reimbursements is described III Section XI of these guidelines. XI. Process for Reimbursement of Reimbursement Rights A. 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 Traffic Impact Fees collected for the fiscal year that just ended. The Administrative Services Department will also determine the amount of Traffic Impact Fee funds that are unspent and unencumbered as of the close of the fiscal year. For funds that are unspent and unencumbered in each fee category. the City will allocate the necessary amount to be used to finance needed TIP facilities for the upcoming fiscal year and/or to repay amounts due on outstanding loans for previously constructed TlF facilities. The remaining funds (the reimbursement set-aside) will be used to reimburse holders of reimbursement rights for facilities already contributed, if any such reimbursement rights exist. B. 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 reimbursement right outstanding. If the oldest right is paid off before this portion of funds is entirely consumed, then the balance of the 50% will go toward the next oldest right. This portion of reimbursement set-aside funds will be allocated according to this method until it is exhausted. The other half of the reimbursement set aside will be allocated to all reimbursement rights on a pro-rata basis Eastern Dublin Traffic Impact Fee Draft Administrati ve Guidelines February 16. 1999 Page 14 It f' "-/ . I J 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 foIIowing example illustrates this allocation: Illustrative Example: During one fiscal year. the City collects $88.000 in Fees for a certain category of improvements. The total outstanding reimbursements owed are $100,000 to the following developers: Developer A (the oldest agreement): $50,000 Developer B: Developer C: $20,000 $30,000 For the upcoming fiscal year. the City retains $44,000 for improvements not built by developers and allocates $44,000 as the reimbursement set-aside to reduce current reimbursement obligations. $22,000 (50% 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 reimbursements (Beginning 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 foIIows: Holder Of Current Value Of Percent of Total Amt of $22.000 Reimbursement Reimbursement Reimbursements Reimbursement Owed Outstandin2 Distributed $ 28.000 35.90% $ 7,898.00 20,000 25.64% $ 5,640.80 30.000 38.46% $ 8.461.20 $ 78.000 $22,000.00 Reimbursement Balance Remainine $20.102.00 $14,359.20 $21.538.80 $56.000.00 Developer A Developer B Developer C TOTAL XII. Other Miscellaneous Administrative Guidelines A. Procedures for Construction of Designated Facilities by Developers The improvements to be constructed or dedicated must be submitted for approval in writing to the Public Works Director no later than thirty calendar days prior to the approval of the Final Map on the development project. The submittal of the improvement ~D . . . . . . Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16, 1999 Page 15 '7 '...-.-"'1' ,,\ /-1 ~.~_ U plans and/or description of area to be dedicated shall be in sufficient detail as determined by the Public Works Director. The Public Works Director will attempt to respond to the request within twenty business days. The developer constructing or dedicating improvements in lieu of paying a portion of the traffic fee must post a performance bond before the issuance of any grading and/or building permits for the construction of the improvements B. Refunds Refunds of 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. C. Annual Review of Fee Collection The City has existing procedures for complying with State law in regards to accounting for developer fees. The Administrative Services Department will maintain records to provide the following items: . A brief description of the Traffic Impact Fee; . An identification of the improvements and the percentage of cost of the improvements which the Traffic Impact Fee will be expended upon; and . For improvements which are funded and yet to be completed. an identification of an expected date by which construction of the facilities will commence. Eastern Dublin Traffic Impact Fee Draft Administrative Guidelines February 16. 1999 Page 16 ;;0 t(?2 () . D. Funds and Accounting 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 Traffic Impact 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 beginning and ending balance of the funds held for the Traffic Impact fee as of fiscal year end. · The City will identify the amount of fees collected and interest earned in each fiscal year for Traffic Impact Fees. · The City will provide a description and accounting of any interfund transfers made by the Traffic Impact Fee Fund. Although it may be authorized by State . Law. it shall not be City policy to loan TIP 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 Traffic Impact Fee, with the City Council and for public inspection within 180 days of each fiscal year end. .