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HomeMy WebLinkAboutItem 4.04 Downtown East Dublin TIP Guidlns~~~~ Off' nU~~~ /ii ~ 111 L~~ - ~ ~~~ DATE: TO: FROM: STAFF REPORT CITY COUNCIL CITY CLERK File #600-70 February 7, 2012 Honorable Mayor and City Councilmembers ~~ Joni Pattillo, City Manager ° ~' SUBJECT: Revisions to Downtown Traffic Impact Fee and Eastern Dublin Traffic Impact Fee Administrative Guidelines Prepared by Linda Smith, Economic Development Director and Public Information Officer EXECUTIVE SUMMARY: Staff is proposing modifications to the existing Administrative Guidelines for both the Downtown Traffic Impact Fee and Eastern Dublin Traffic Impact Fee to provide additional flexibility to the Public Works Director to determine trip generation rates. FINANCIAL IMPACT: None. RECOMMENDATION: It is recommended that the City Council adopt the following resolutions: 1) Resolution revising the Administrative Guidelines related to the Eastern Dublin Traffic Impact Fee; and 2) Resolution revising the Administrative Guidelines related to the Downtown Traffic Impact Fee. ,. ,,~ , , _., f Submitted By Economic Development Director DESCRIPTION: r~~". Reviewed By Assistant City Manager As part of the City's ongoing effort to improve its services to the development community, Staff has reviewed the existing administrative guidelines for the Downtown Traffic Impact Fee and Eastern Dublin Traffic Impact Fee (TIF). The revisions to the Administrative Guidelines are minor but will provide additional flexibility to the Public Works Director in determining the trip generation rates for land uses in Dublin. In summary, Staff is proposing to standardize the language between the two TIF Administrative Guidelines to clarify wording in the section "Basis for Calculating Fees." Further, the proposed changes provide the Public Works Director the ability to utilize existing traffic studies or analysis, if appropriate, as an alternative to requiring a new traffic study by an applicant. Page 1 of 3 ITEM NO. 4.4 While it is expected that the City Council will review an update on the TIF program in 2012, Staff is recommending the City Council revise the guidelines now given that project work may occur in the next several months where these revisions could be beneficial to the City and to future development. Following are the proposed language changes (in strikethrough and bold) to the Downtown TIF and Eastern Dublin TIF Administrative Guidelines: Downtown TIF, Section 3C 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 the Resolution (i. e., Low Density Residential, Medium Density Residential, Medium/High 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 D to the Resolution. u^~^~~~~~~ rf *ho ~,~hir,~. ini,,,-i ~ nr,-o~*,,,- .~o*o,-r,r„o~ *h~* However, if the Public Works Director determines that the land use of the development project is not appropriately reflected in Exhibit D to the Resolution or that the intensity of the proposed land use is not consistent with the adopted land use categories in Exhibit D, then the Public Works Director will have the option of requiring a traffic analysis or utilizing an existing, relevant study for the purpose of determining the estimated trip generation of the proposed development project. The Public Works Director will require that any new traffic analysis costs by borne by the applicant. 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 development projects, involving residential and/or non-residential uses, the Community Development Director will determine the projected percentage of each non-residential 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. As an example, if a large single building is divided between commercial office space and industrial warehouse space and 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 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 Fee for the residential portion of a mixed-use development project shall be based on the proposed number of units, in a manner similar to when the Fee is calculated for an exclusive residential development project. The average weekday trip generation rate for any land use, which is not appropriately reflected ~ ~ on Exhibit D to the Resolution, including but not limited to, public/semi-public uses, shall be determined by the Public Works Director. 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. Page 2 of 3 Eastern Dublin TIF, Section 3C 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 111-04 (i. e. Low Density Residential, Medium Density Residential, Medium/High 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 C" of Resolution 111-04. However, if the Public Works Director determines that the land use of the development project is not appropriately reflected in Exhibit C to the Resolution or that the intensity of the proposed land use is not consistent with the adopted land use categories in Exhibit C, then the Public Works Director will have the option of requiring a traffic analysis or utilizing an existing, relevant study for the purpose of determining the estimated trip generation of the proposed development project. The Public Works Director will require that any new traffic analysis costs by borne by the applicant. ~'r,owever, if tl~e-°~ ~"',-~-'~k~ -D:rester prejes~ 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, upon consultation with the Public Works 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 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 C to Resolution 111-04), 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. Staff is requesting that the City Council consider and adopt the resolution revising the Eastern Dublin TIF Administrative Guidelines (Attachments 1 and 2) and the resolution revising the Downtown TIF Administrative Guidelines (Attachments 3 and 4). NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Revising the Eastern Dublin TIF Administrative Guidelines 2. Exhibit A to Resolution - Eastern Dublin TIF Administrative Guidelines with Proposed Revisions 3. Resolution Revising Downtown TIF Administrative Guidelines 4. Exhibit A to the Resolution -Downtown TIF Administrative Guidelines with Proposed Revisions Page 3 of 3 RESOLUTION NO. -12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN REVISING ADMINISTRATIVE GUIDELINES RELATED TO THE EASTERN DUBLIN TRAFFIC IMPACT FEE WHEREAS, the City Council has established a Traffic Impact Fee (TIF) applicable to development occurring within the Eastern Dublin Specific Plan Area; and WHEREAS, the current TIF was adopted on June 18, 2004, via Resolution 111-04; and WHEREAS, the City Council previously adopted Resolution 20-07, Adopting Revisions to the Eastern Dublin TIF Administrative Guidelines; and WHEREAS, the intent of the Guidelines is to provide procedures for reimbursement, credit, or other adnunistrative aspects of the TIF Program; and WHEREAS, revisions to the Adnunistrative Guidelines are necessary to provide greater flexibility to the Public Works Director to deternune the trip generation rate calculations and to ensure language consistency between the Eastern Dublin TIF Adnunistrative Guidelines and the Downtown TIF Administrative Guidelines; WHEREAS, the revised Guidelines, as prepared, are consistent with the requirements of Resolution 111-04, as well as existing laws and regulations. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt the revised Eastern Dublin Traffic Impact Fee Adnunistrative Guidelines, attached hereto as Exhibit A and by reference made a part hereof to supersede all prior versions of the Guidelines. PASSED, APPROVED AND ADOPTED this 7th day of Febniary, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk EXHIBIT A CITY OF DUBLIN EASTERN DUBLIN TRAFFIC IMPACT FEE ADMINISTRATIVE GUIDELINES Re~Tision Adopted Resolution # 20-07 (2/20/2007) L Introduction/O~~er~~iew These guidelines apple to the Eastern Dublin Traffic Impact Fees (hereafter kno~~-n as the `Fee' or `Fees') adopted b~~ the City of Dublin through Resolution 111-04 and anv subsequent replacement resolution. The Eastern Dublin Traffic Impact Fee includes three categories of improvements and facilities. • Section I improvements and facilities are those located exclusively in the Eastern Dublin Specific Plan area. • Section II improvements and facilities are those projects to which Eastern Dublin developers contribute a proportionate share, including projects located in other areas of the City. • Section II Residential BART Ciara~e improvements include 500 spaces in Phase I of the Eastern Dublin BART garage ,necessitated by residential development outside the Transit Center. • Section III improvements and facilities are those of a regional nature. (NOTE: Section III Fee suspended effective September 12, 1998, as long as Tri-Valley Transportation Development Fee remains in place.) The administrative guidelines pro~Tide 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 pro~Tiding credits and/or reimbursements to developers who construct andlor dedicate anv of the improvements and facilities for which the Eastern Dublin Traffic Impact Fee is imposed (TIF facilities). When such public improvements and facilities are constructed andlor 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 ma~~ use the credit toward the Fees for another development project or transfer the credit to another eligible developer in Eastern Dublin in accordance ~~-ith these guidelines. If the developer cannot use or transfer the credit ~~-ithin ten years, then the credit ~~°ill convert to a reimbursement right. At the end of the ten-year period, the developer ma~~ elect to extend the credit for an additional five years. The combination of credit and reimbursement rights will terminate twenty-five years after the effective date of the agreement creating such rights. The administrative guidelines also establish the authority for the distribution of monies collected under "Section II Residential BART Garage". The application of these guidelines will at times refer to various reference documents adopted b~~ 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 Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page 2 of 13 updates. Such reference documents are subject to change and may affect the application of these guidelines. IL Authority of City Manager to Interpret Situafions Not Co~~ered Should situations arise not covered by these guidelines, the City Manager ~yill have the authority to determine ho~y the resolutions, ordinances, guidelines and agreements ~yill be administered. Such interpretations by the City Manager ~yill be in ~~a-iting. 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 belo~y: 1. All ne~y development, including ne~y construction of an_y building or structure (residential or non-residential); Additions to non-residential buildings or structures ~yhich result in an increase of 500 square feet or more: Additions to residential buildings or structures ~yhich increase the number of units (i.e. constuction of a "grann~• unit"). The Administrative Services Department serves as the lead department to gather and coordinate the information necessaiti~ to calculate the Fee. The Community Development Department is responsible for determining the intended land use. The Public Worlcs Department is responsible for determining the number of vehicle trips assigned to the project. Unless other~yise pro~Tided, the Fee ~yill be collected ~yith the pa~~ment for the building permit for the development project. B. Effecti~~e Fees The Fees o~yed by a development project ~yill be those in effect ~yhen the building permit is obtained. This section shall be applicable ~yhether the fees are paid in cash or a credit is used. C. Basis for Calculafing Fees The Fees for residential development projects ~yill be calculated based upon the per unit fee for each of the categories noted in Resolution 111-04 (i. e. Logy Density Residential, Medium Density Residential, Medium/High Density Residential, High Density Residential) andlor any subsequent replacement resolution. The Fees for non-residential development are calculated on a per average ~yeekdav vehicle trip basis. The number of average ~yeekdav vehicle trips for each t~~pe of development is determined by the land use categories specified in "Exhibit C" of Resolution 111-04. Ho~ye~--°er, if the Public Works Director determines that the land use of the deg-°elopment project is not appropriately reflected in Exhibit C to the Resolution or that the intensity of the proposed land use is not consistent ~yith the adopted land use categories in Exhibit C, then the Public Worhs Director ~yill hat--°e the option of requiring Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page 3 of 13 a traffic analysis or utilizing an esistin~, rele~--°ant titudy for the purpose of determining the estimated trip generation of the proposed deg-°elopment project. The Public Worhs Director ~yill require that and- ne~y traffic anal~-sis costs b~- borne b~- the applicant. Fees , - Ue~etea: xuwecer, ~ftr~e pnur~~ «°nrr~ nu~e~rnr ----~ for non-residential development ~yill be charged for any addition to an existing building dere~n~u~es rear flee rasa ~„e nftr~e aecelupmenr " or stiuctus-e if the addition exceeds 500 square feet. pio~ect is not appiopriatel~~ reflected on Exhibit C uPRe,ulnfiun rr r o~, flier tree pnur~~ works Departruent will undertake a specific traffic smdv, to For mixed-use non-residential development projects, the Community Development be paid for b~ flie applicant, for flee purpose of dereimnung flee e,fin~ared fllp ~enerar~nn uPflie Director upon consultation ~yith the Public Works Director ~yill determine the projected p,,npnsea de`'erupmenr prn~e°r. , , percentage of each use at the time the Final Map or other appropriate entitlement is approved. The Fee ~yill be calculated on a pro-rata basis among the various rates stated for each different use (For example, a large single building could be di~Tided bettyeen commercial office space and industrial ~yarehouse space). If the uses are unkno~~n 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 ~yill be assumed as "Industrial ~yithout RetaiP'. Any additional Fees o~yed as a result of a different final use of the property ~yill 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 ~yill be given if the resulting uses are different from the projected land use. The average ~yeekdav trip generation rate for quasi-public uses, ~yhich is not appropriatel~~ reflected on the "Estimated Weekday Vehicle Trip Generation Rate" schedule that ryas adopted as part of the Traffic Impact Fee Resolution (Exhibit C to Resolution 111-04), as determined by the Public Works Director, ~yill be established by a project specific traffic study. This study ~yill be conducted by the Cite (Public Works Department) and paid for by the project applicant. Affordable housing projects developed b~~ government agencies and non-profit entities ~yill be subject to the same Fees that are assessed on private residential development. D. Exemptions 1. Total Exemption. The follo~ying t~~pes of development ~yill be exempt from the collection of Traffic Impact Fees: a) Any alteration or addition to a residential stiuctus-e, except to the extent that a residential unit is added to a single-famil~~ 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 ~yithin one year after the building ryas destroyed or demolished, unless the replacement or reconstruction increases the square footage of the stiuctus-e ~0% or more. c) Any replacement or reconstruction of an existing non-residential structure that has been destroyed or demolished provided that the building permit for ne~y reconstruction is obtained ~yithin one year after the building ryas destroyed or demolished and the reconstructed building ~yould not Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page 4 of 13 increase the destroyed or demolished building's trips based on the "Estimated Weekday Vehicle Trip Generation Rate" as applied to the original building. Partial Exemption. A partial exemption may be granted based on prior Fees paid in the situation of a change in the t~~pe of use as described below: If within 10 years of pa~~ing Eastern Dublin Traffic Impact Fees for a specific development project, the project is demolished and replaced b~~ a new t~~pe of development, an exemption ma~~ be given for up to the amount which was paid b~~ the prior development project. Proof of pad-ment shall be obligation of the indi~Tidual/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 pa~~ the entire Fee. IV. Fee Collection A. Payment of Traffic Impact Fees for Non-Residential De~~elopment The Traffic Impact Fee for non-residential development will be due and pa~~able at the issuance of a building permit and will be collected by the Building & Safety Di~Tision. The number of estimated average weekday vehicle trips, determined as described in Section IILC., above, multiplied b~~ 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 C" of Resolution 111-04. Following is an example: 1'or7-Resder7ticrl Fee E~crrnple: Assume that the development project is a 1~~40 square foot standard commercial office building. The estimated ~~°eekdav vehicle trip generation rate for this t~~pe 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/1,000 square feet = 15.54 x 20 trips = 310.8 trips x $360 per trip = $111,888 Traffic Impact Fee. Amendments to anon-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 De~~elopment If the City incorporates the facilities described in Resolution 111-04 into its annually adopted long-term Capital Improvement Plan (CII'), then the Traffic Impact Fees for residential development will be due and pa~~able at the issuance of a building permit. Prior to the incorporation of these facilities into the CII', the Fee will not be due until the dwelling is issued a certificate of occupanc~~. The developer ma~~ voluntarily pa~~ 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 pad-ment for Traffic Impact Fees exceeds $50,000 on an~~ gig en da~~, pad-ment shall be made in one of the following wa~~s: 1) paid b~~ check dra~~n on a bank ~vitlun the State of California, 2) paid. U~• cashier's check, or 3) if paid. in wine day funds Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page ~ of 13 b~ a wire transfer, the wire transfer must be pre-arranged with the City's Finance Di~Tision. D. Payment of Fees in Conjuncfion with De~~elopment Agreements The Traffic Impact 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. E. Payment Records The Administrative Ser~Tices Department will record the pad-ment of the Traffic Impact Fees. Records will be maintained to comply ~~-ith refunding requirements as prescribed Uy State La~~ . The Administrative Services Department ~~ ill oUtain a mailing address from each pa~~ee, as well as the applicable Assessors Parcel Number, and will note the pa~~ee as the entity or person whose name appears as the applicant for the building permit. The Finance Division ~~-i11 maintain the records for a period of ten years from their collection, unless a legal mandate exists for a longer retention. V. Allotment of De~~eloper Fee Credits The City understands the practicality of ha~Ting developers construct andlor contribute some of the TIF facilities described in Resolution 111-04 and any subsequent replacement resolution. For this reason, the City will allot fee credits against the collection of Fees for constructing or contributing TIF facilities. A. Fee Credit /Reimbursement Agreement Required The allotment of fee credits andlor pro~Tision for a reimbursement ~~-i11 only occur in accordance with a ~~a-itten credit/reimbursement agreement between the City and the developer responsible for the construction of the TIF facilities or dedication of TIF right of ~~ ay. 1. All fee credits will be granted b~~ use of a standard agreement approved b~~ the City Attorney. 2. This credit/reimbus-sement agreement will be entered into at the time the improvements are secus-ed andlor the right-of-~~~av is accepted for dedication. The terms of this agreement may, at the C'itds discretion, be included in the agreement entered into ~~-ith the City to secus-e certain public improvements as contained on a Final Parcel Map or Final Subdi~Tision Map. 3. The developer ~~-i11 pa~~ an administrative fee, due on the effective date of the credit/reimbursement agreement, to be established in the City's Master Fee Schedule. The pus-pose of this administrative fee is to cover the administrative costs associated ~~-ith 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 fifteen years after it is created. Alternatively, credit holders may elect by pro~Tiding ~~a-itten notice to the City Manager to extend the term of the credit for an additional five years. Notices of the election to extend the term must be received no sooner than one year prior to Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page 6 of 13 and no later than six months prior to the conversion of the credits to a right to reimbursement. If the credit holder elects to extend the term of the credit for five years, then any credits remaining at the end of the five-year extension shall convert to a right of reimbursement. The right to reimbursement terminates ten years after it is created. All rights to reimbursement shall terminate ttyenty-five years after the effective date of the agreement creating such rights. ~. Neither a credit nor the right to reimbursement shall be increased for inflation or accrue interest. 6. Credits are transferable, ~yith the ~yritten approval of the City Manager, provided the credit is transferred to a person/Firm haying a legal interest in real propert~~ ~yithin 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 ~yill sign a certificate attached to the fee credit/reimbursement agreement attesting that it obtained a cope of these administrative guidelines and they ~yere read and understood. 8. No fee credits shall be established for "Section II Residential BART Garage component of the Eastern Dublin Traffic Impact Fee. Payments Fi-om those monies shall be made in accordance ~yith a separate section of these guidelines. B. Applicability of Administrafi~~e Guidelines to Pre-Existing Credits Allotted to the Alameda County Surplus Property Authority These guidelines do not apple to existing fee credits to ~yhich the Alameda County Surplus Propert~~ Authority is entitled under the terms of the Agreement bettyeen the City of Dublin, the City of Pleasanton, the County of Alameda and the Surplus Propert~~ Authority regarding coordination of certain Free~~°av Improvements dated March 12, 1991. These guidelines do apple to existing fee credits to ~yhich the Alameda County Sus-plus Propert~~ Authority is entitled under development agreements entered into bettyeen Januatti~ 1, 1995 and the effective date of these guidelines, to the extent provided for in a specific fee credit/reimbursement agreement to be entered into bettyeen the City and the Alameda County Surplus Propert~~ authority. VL Calculating the Fee Credits For calculation purposes, the fee credits ~yill be segregated into the follo~ying categories: Section L Eastern Dublin Traffic Improvements Section II (Excludes Section II Residential Bart Garage): Cit~~yide Traffic Improvements Section III: Regional Transportation Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page 7 of 13 (Note: Section III Fee suspended effective September 12, 1998, as long as Tri-Valley Transportation Development Fee remains in place.) A. General The fee credit/reimbus-sement agreement ~~-i11 identify the total credit by categor~~ for TIF facilities constructed or right of ~~ ay dedicated for a particular development project. The contributed land or improvements must be the facilities described in Resolution 111-04 andlor any subsequent replacement resolution. There must be a minimum value of $xO,000 in improvements andlor right of ~~°av dedicated before credits will be allotted to a developer. B. Determination of Value The Public Worlcs Director will determine the value of the contributed facilities based upon improvement plans submitted by the developer and approved b~~ the City , which plans shall quantify the size of the TIF facilities to be constructed or dedicated. It is recognized that in some cases the scope of construction or dedication ~~-i11 not exactly match segments sho~~n in the TIF Report. The credits will be the lesser of the following: a) the estimated cost of the improvements as noted in Resolution 111-04 andlor any subsequent replacement resolution; or b) the pro-rated value of the improvement using the standard cost measurements in Resolution 111-04 andlor 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. Illrrstr^atn~e Example 1: 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 TIF. 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 111-04 used a standard cost measurement of $7 per square foot for right-of-~~~ay 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. Illrrstr^atn~e Example 2: A developer constructing single family homes contributes traffic signal improvements (Category 1 improvement) valued at $2OO,000. Assume that the Traffic Impact Fee totals $6,950 per home, which is comprised of the Category 1 portion of $4,700 and the Category 2 portion of $2,250. The credit of $200,000 can only be used against the developer's Category 1 Fee of $4,700 per home, which ~~-i11 cover approximately 42.55 homes. When the building permit is issued for the 43i~`~ home, the developer ~yill have used up the credit and will have to begin paying the Categoiti~ 1 Fee. The Categoiti~ 2 portion of the Fee must be paid at the issuance of each building permit for all homes included in the Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page 8 of 13 development, as the Categoiti~ 1 credit cannot be used to offset these portions of the Fee. VII. Use of Fee Credits A. Credits expire when used or ten years from the date of the credit/reimbursement agreement (unless extended an additional five years at the request of the credit holder), whichever occurs first. B. In the event the fee credits are unused following ten years from the date of the credit/reimbursement agreement (or fifteen years if extended at the request of the credit holder), the fee credit shall convert to a reimbursement right as pro~Tided for under Section 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 categor~~ as they are used by the developer. The City's Finance Di~Tision will keep record of the unused credits and pro~Tide this information to the Building Safet~~ Di~Tision at the time fee credits are used. D. Credits earned by constructing or dedicating a certain categoiti~ of improvements can only be used to offset fees for that categoiti~. The balance of the Traffic Impact Fee, which is to be used for other categories of improvements, ~~-i11 be paid b~~ the developer as specified in Section IV of these guidelines. Fee credits will not be mixed between the fee categories. For example, unused credits from Categor~~ 1 portion of the Traffic Impact Fees cannot be used to offset amounts due for Categor~~ 2 and Categor~~ 3. E. Only the developer who builds or dedicates the TIF facilities ~~-i11 be entitled to the original or initial credits, until such time as they ma_v 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 Pro~Tided 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 Occupanc~~ 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 ~0% of the engineer's estimate. The bonds shall be ~~-ritten by a surety licensed to conduct business in the State of California and approved b~~ the City's Cit_v Manager. Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page 9 of 13 Illrrstr^atn~e 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-~~~av 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 ~~-i11 be dedicated and the improvements ~~-i11 be completed. IX. Transferring of Credits A. The original holder of credits can request a transfer of credits to a person o~~-ning an interest in propert~~ that is subject to the same categor~~ 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 (Sections I & II -Excluding Section II Residential BART Garage) Reimbursement rights are created from the conversion of fee credits, which occurs ten years after the initial date of the credit/reimbursement agreement creating the fee credit (unless the credits have been extended an additional five years at the request of the credit holder). Reimbursement rights are subject to the follo~~-ing specific guidelines: A. The reimbursement rights shall expire twenty-five years after the initial date of the credit/ reimbursement agreement creating the fee credit. B 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 Cit_v's General Fund. C. The City will determine the amount of funds available for reimbursement in each of the categories on an annual basis. D. The procedure for prioritizing reimbursements is described in Section XI of these guidelines. XL Process for Reimbursement of Reimbursement Rights A. Determination of Funds Available for Reimbursement Within 18~ days of the end of each fiscal year, the Administrative Ser~Tices Department ~~-i11 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 categor~~, the City ~~-i11 allocate the necessaiti~ amount to be used to finance needed TIF facilities for the upcoming fiscal year andlor to repa~~ amounts due on outstanding loans for pre~,iously Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page 10 of 13 constructed TIF facilities. The remaining funds (the reimbursement set-aside) will be used to reimbus-se 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, Iifty percent will be used to pa~~ 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% ~yill go toward the next oldest right. This portion of reimbursement set-aside funds ~yill 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 according to their amounts outstanding, including the remaining um-eimbus-sed portion of the oldest agreement. Unused reimbursement set-aside funds will not be carried over to another Iiscal year. The following example illustrates this allocation: Illrrstr^atn~e Example: During one fiscal year, the City collects $88,000 in Fees for a certain categor~~ of improvements. The total outstanding reimbursements owed are $100,000 to the following developers: Developer A (the oldest agreement): $50,000 Developer B: $20,000 Developer C: $30,000 For the upcoming Iiscal ~~ear, 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 $~1~1,000) of the reimbursement set-aside is used to pa~~ 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 pad-ment). 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 O~ced Outstandin¢ Distributed Remainin¢ Developer A $28,000 3590% $7,898.00 $20,102.00 Developer B $20,000 25.64% $5,640.80 $14,35920 Developer C $30,000 38.46% $8,46120 $21,538.80 TOTAL $78,000 $22,000.00 $56,000.00 XIL Payment to Alameda County Surplus Property Authority (ACSPA) For $6 million of BART Garage Costs (Section II Residential BART Garage) Payment of Section II Residential BART Garage Fees can occur upon completion of phase I of the parking garage and surface parking immediately adjacent to the new garage at the eastern Dublin / Pleasanton BART Station, consisting of approximatel~~ 1,706 parking spaces, and the availability of the BART Garage for public use. Payment shall be made to the Alameda County Surplus Propert~~ Authorit~~ (ACSPA), which is responsible for the parking garage construction and will dedicate the improvement to the Bay Area Rapid Transit (BART) District for public use upon its completion. Except for interest earned on Section II Residential BART Garage fees prior to distribution, the maximum amount to be paid to ACSPA shall not exceed $6,000,000 (six Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page 11 of 13 million dollars). Pa~~ment to Alameda County Surplus Propert~~ Authority is subject to the following specific guidelines: A. The maximum to be disbursed from fees collected, as described in XII subsection B, shall be six million dollars ($6,000,000) and this amount shall not be increased for anv reason including inflation. In addition, an_v accrued interest pending disbursement shall be disbursed to ACSPA. B. Disbursement will be only from the Eastern Dublin Traffic Impact Fees Section II Residential BART Garage fee, and will not come from an_v other sous-ce including the Citv's General Fund. C. Once the BART Garage is completed, the amount disbursed will depend on the pad-ment of fees by development subject to the fee. There is no guarantee that ACSPA will receive a total of $6,000,000. D. The City will determine and report on an annual basis to ACSPA, the amount of funds collected from the Section II Residential BART Garage fee and the amount available for disbursement, including interest accrued prior to disbursement, if anv. E. The procedus-e for distributing the disbursements to ACSPA is described in Section XIII of these guidelines. XIII. Process for Payment to ACSPA -Section II Residential BART Garage Fee Funds A. Initial Distribution of Section II Residential BART Garage Fee Funds i. Once the BART Garage has been accepted b~~ BART and made available for public use, the ACSPA shall provide to the Cit_v a written certification of the completion of the BART Garage. ii. Within 45 davs of receipt of the certification described in Section XIII(A)(i) Cite shall calculate the balance of funds available in Section II Residential BART Garage fee, as of the first day of the month preceding the date of the notice. City shall also calculate and account for accrued interest based on the quarterl~~ balance of Section II BART Garage Fees and the earning rate applied to pooled funds managed b~~ the City. City shall remit to ACSPA the funds as calculated along with a report showing the maximum remaining fees that may be paid to ACSPA. iii. Thereafter, funds shall be distributed on an annual basis as described in subsection B below. B. Annual Determinafion of Section II Residential BART Garage Fee Funds A~~ailable for Payment i. Within 180 davs of the end of each fiscal year, the Administrative Services Department will make an accounting of all Section II Residential BART Garage fees collected, and not previousl~~ disbursed, for the fiscal year that just ended. This shall include accrued interest. ii. The City shall distribute to ACSPA, Section II Residential BART Garage fees a~ ailable, to the extent that the total distribution including previous pad-ments, Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page 12 of 13 excluding an~~ amounts paid as interest, does not exceed the maximum amount described in Section XII. iii. The Administrative Services Department shall annually report to the ACSPA the current balance remaining Section II Residential BART Garage fees that ma_y be paid. XIV. Other Miscellaneous Administrati~~e Guidelines A. Procedures for Construction of Designated Facilities by De~~elopers The improvements to be constructed or dedicated must be submitted for approval in ~~riting to the Public Works Director no later than thirty calendar da~~s prior to the approval of the Final Map on the development project. The submittal of the improvement plans andlor description of area to be dedicated shall be in sufficient detail as determined by the Public Worlcs Director. The Pubic Worlcs Director ~~~ill attempt to respond to the request ~~~ithin ttyenty business days. The developer constructing or dedicating improvements in lieu of pa~~ing a portion of the traffic fee must post a performance bond before the issuance of an~~ grading andlor building permits for the construction of the improvements. B. Refunds Refunds of ~~-ithdra~~-n applications ~~~ill be done in accordance ~yith existing procedures for paid building permits. • Payable to entity making pa~~ment or property o~~ner of record. • PavaUle in accordance ~yith State La~~ . • Not applicable to letters of credit, surety bonds or other instruments taken to secure pad-ment. C. Annual Re~~iew of Fee Collection The City has existing procedures for compl~~ing ~~~ith State La~~~ in regards to accounting for developer fees. The Administrative Services Department ~~-ill maintain records to provide the follo~~~ing items: • A brief description of the Traffic Impact Fee: • An identification of the improvements and the percentage of cost of the improvements ~~~hich the Traffic Impact Fee ~~~ill be expended upon: and • For improvements ~~~hich are funded and yet to be completed, an identification of an expected date by ~~~hich construction of the facilities ~~~ill commence. D. Finds and Accounting The City ~yill incorporate the follo~~~ing items into its accounting procedures, ~~~hich are the responsibility of the Administrative Services Department: The City ~~~ill maintain separate funds for the collection and expenditure of Traffic Impact Fees as follo~ys: Section L Eastern Dublin Traffic Improvements Section IL City-Wide Traffic Improvements Section II Residential BART Garage The City ~~-i11 allocate interest to fees collected in the funds based upon cash balances at the end of each quarter. Eastern Dublin Traffic Impact Fee Administrative Guidelines Reso 20-07 (2/20/2007) Page 13 of 13 • 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 ~~-i11 identify the amount of fees collected and interest earned in each fiscal year for Traffic Impact Fees. • The City will pro~Tide a description and accounting of an~~ interfund transfers made by the Traffic Impact Fee Funds. Although it ma~~ be authorized by State Lary, it shall not be Cite police to loan TIF monies for another public purpose. • The City ~yill calculate reimbursements annually within 180 days of each Iiscal year end. • The City will Zile an annual accounting of all development impact fees, including the Traffic Impact Fee, ~~-ith the Cit_v Council and for public inspection ~~-ithin 180 days of each Iiscal year end. RESOLUTION NO. -12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN REVISING ADMINISTRATIVE GUIDELINES RELATED TO THE DOWNTOWN TRAFFIC IMPACT FEE WHEREAS, the City Council has established a Traffic Impact Fee (TIF) applicable to development occurring in all areas west of Dougherty Road and the Iron Horse Trail, referred to as the "Downtown Area;" and WHEREAS, the Downtown TIF was adopted on October 19, 2004, via Resolution 210-04; and WHEREAS, City Council previously adopted Resolution 211-04, Establishing the Downtown TIF Adnunistrative Guidelines; and WHEREAS, the intent of the Guidelines is to provide procedures for reimbursement, credit, or other adnunistrative aspects of the Downtown TIF Program; and WHEREAS, revisions to the Adnunistrative Guidelines are necessary to provide greater flexibility to the Public Works Director to deternune the trip generation rate calculations and to ensure language consistency between the Downtown TIF Administrative Guidelines and the Eastern Dublin TIF Administrative Guidelines; WHEREAS, the revised Guidelines, as prepared, are consistent with the requirements of Resolution 211-04, as well as existing laws and regulations. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt the revised Downtown Traffic Impact Fee Administrative Guidelines attached hereto as Exhibit A and by reference made a part hereof to supersede all prior versions of the Guidelines. PASSED, APPROVED AND ADOPTED this 7th day of Febniary, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk CITY OF DUBLIN DOWNTOWN TRAFFIC IMPACT FEE ADMINISTRATIVE GUIDELINES L Introduction/O~~er~~ie~~~ These guidelines apph~ to the I)o~~ nto~~,~n Traffic Impact Fees (hereafter lcno~~,~n as the "Fee" or "Fees") adopted b~~ the Cite of Dublin through Resolution 210-04 (hereafter "Resolution") and an~~ subsequent replacement resolution. Terms used in these guidelines shall be defined in the same manner as such terms are defined in the Resolution. The administrative guidelines provide procedures for calculation of the Fee, calculation and use of credits and reimbursements, and other administrative aspects of the Fee. The administrative guidelines establish the authorit~~ for providing credits andlor reimbursements to developers ~~-~ho construct andlor dedicate an~~ of the improvements and facilities for ~~-~hich the Fee is imposed (TIF facilities). When such public improvements and facilities are constructed andlor dedicated b~~ 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 ma~~ use the credit to~~-~ard the Fees for another development project or transfer the credit to another eligible developer in Do~~ nto~~,~n Dublin in accordance ~~-~ith these guidelines. If the developer cannot use or transfer the credit before all of the TIF improvements are completed, then the credit will convert to a reimbursement right, ~~-~hich ~~,~ill commence ~~-hen all of the TIF improvements are completed. The application of these guidelines will, at times, refer to various reference documents adopted b~~ the Cite of Dublin. These documents include the Citv's Ueneral Plan, the Specific Plans, the most recent Traffic Impact Fee Stud~~, and various other I)o~~ nto~~,~n Do~~,~nto~~,~n Traffic Impact Fee Administrative Guidelines Page 2 fee studies and updates. Such reference documents are subject to change and ma~~ affect the application of these guidelines. IL Authorit~~ of Cite Manager to Interpret Situations Not Co~~ered Should situations arise not covered b~~ these guidelines; the Cite Manager ~~,~ill have the auth~rit~~ to determine ho~~-~ the resolutions, ordinances, guidelines and agreements ~~,~ill be administered. Such interpretations b~~ the Cite Manager ~~,~ill be in ~~--riting. III. Fee Calculation Imposition of Fees Elcept as elempted under subsection "D" of this section, Fees are imposed on all development in Do~~ nto~~,~n Dublin as set forth in Section " 2" (Traffic Impact Fee Im _ osed) of the Resolution incorporated in these guidelines b~~ reference. The Administrative Services Department serves as the lead department to gather and coordinate the information necessar~~ to calculate the Fee. The Communit~~ Development Department is responsible for determining the intended land use. The Public Worlcs Department is responsible for determining the number of vehicle trips assigned to the project. Unless other~~,~ise prop°ided, the Fee ~~,~ill be collected ~~-~ith the pa~Tment for the building permit for the development project. Effecti~~e Fees The Fees o~~-~ed b~~ a development project ~~,~ill be those in effect ~~-hen the building permit is obtained. This section shall be applicable ~~-~hether the fees are paid in cash or a credit is used. Do~~,nto~~,~n Traffic Impact Fee Administrative Guidelines Page 3 Basis for Calculating Fees The Fees for residential development projects ~~,~ill be calculated based upon the per unit Fee for each of the categories noted in the Resolution (i.e., Lo~~-~ Densit~~ Residential, Medium Densit~~ Residential, Medium/High Densit~~ Residential, High Densit~~ Residential) andlor an~~ subsequent replacement resolution The Fees for non-residential development are calculated on a per average ~~-~eekdav vehicle trip basis. The number of average ~~-~eelcda~~ vehicle trips for each t~~pe of development is determined b~~ the land use categories specified in Elhibit I) to the Resolution. However, if the Public Works Director determines that the land use of the development project is not appropriately reflected in Elllibit D to the Resolution or that the intensit~~ of the proposed land use is not consistent with the adopted land use categories in Elhibit D, then the Public wOllis Dll"eCt01 «111 have the Optloll Of legUll"111~? a trafl1C allalysls Ol ut111Z111~? 2111 elistin~, relevant stud~• for the purpose of determining the estimated. trip generation of the pmpused development project. The Public Worhs Director will require that an~• ne~v traffic anal~•sis costs b~ borne b~ the a~~licant. Fees for non- residential development will be charged for an~~ addition to an elistin~ building or structure if the addition elceeds X00 square feet. ~eieted: xo«e~ e~~, ~t the P~;~i~~ wo~~ia ~u~e~ro~~ dPilPirnlnrPiS x1181 x110 1811( 1150 01 x110 (~0~`0jOp1110n1 project is not specifically listed on Exhibit D to the 1Z0SOhlf1011, x11011 x110 1'11b11C ~VOIliS 1)ll'OCtOI R'ljl For mired-use development projects, involving residential andlor non-residential ""de1r'i 0 a Specific r'~am° ,r"d`', rn be''a'a t°r b`' r11e dpph~enl, 101 r11e pl1IpO~e 01 (~e1e111ll11ll1~T r11e uses the Communit~~ Development Director ~~,~ill determine the projected eJfllll9fe(~ trlp ~Te11eI811011 01 r11e pIOpOSe(~ de~eio ,,,,enl i ;ecl , i p o . percentage of each non-residential use at the time the Final Map or other appropriate entitlement is approved. The Fee ~~,~ill be calculated on a pro-rata basis among the various rates stated for each different use. As an elample, if a large single building is divided bett~,~een commercial office space and industrial ~~-~arehouse space and the uses are unlcno~~,~n 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 Do~~,~nto~~,~n Traffic Impact Fee Administrative Guidelines Page 4 purposes ~~,~ill be assumed as "Industrial ~~-~ithout Retail." An~~ additional Fees o~~-~ed as a result of a different final use of the propert~~ ~~,~ill 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 ~~,~ill be given if the resulting uses are different from the projected land use. The Fee for the residential portion of a mired-use development project shall be based on the proposed number of units, in a manner similar to ~~-hen the Fee is calculated for an elclusive residential development project. The average ~~-~eelcda~~ trip generation rate for an~~ land use, ~~-~hich is not appropriatel~~ reflected on Elhibit I) to the Resolution, including_but not limited , , - ~eieted: are~~t~~auz, i~area to, public/semi-public uses, shall be determined b~~ the Public Worlcs Director. Affordable housing projects developed b~~ government agencies and non-profit entities ~~,~ill be subject to the same Fees that are assessed on private residential development. Exemptions Exemptions from the Fee ~~,~ill be given to certain development in Do~~ nto~~,~n Dublin as set forth in section "5" (Exemptions from Fee) of the Resolution incorporated in these guidelines b~~ reference. IV. Fee Collection 1. Pa~~ment of Traffic Impact Fees for Non-Residential De~~elopment The Fee for non-residential development ~~,~ill be due and pa~~able at the issuance of a building permit and ~~,~ill be collected b~~ the Building & Safet~~ Division. The number of estimated average ~~-~eekdav vehicle trips, determined as described in Section IILC., above, multiplied b~~ the non-residential Fee per trip, ~~,~ill be the basis for the collected Fee. The square footage or other appropriate measure as I)o~~,~nto~~,~n Traffic Impact Fee Administrative Guidelines Page 5 identified on the building permit ~~,~ill be the basis for determining the number of trips on Elhibit I) to the Resolution. Follo~~,~ing is an elample: lon-Residential Fee Exa»zple: Assume that the development project is a 15,540 square foot standard commercial office building. The estimated ~~-~eekday vehicle trip generation rate for this t~~pe of development is 20 trips per 1,000 square feet, and the Fee is $136 per trip for non-residential development. FEE CALCULATION: 15,540 square feet/1,000 square feet = 15.54120 trips = 311 trips 1$136 per trip = $42,296 Traffic Impact Fee. Amendments to anon-residential building permit ~~-~hich result in 500 additional square feet of operational space or more shall result in additional Fees o~~-~ed based on the added area. B. Pa~~ment of Traffic Impact Fees for Residential De~~elopment If the Cite incorporates the Improvements described in the Resolution into its annuall~~ adopted long-term Capital Improvement Program (CII'), then the Fees for residential development ~~,~ill be due and pa~~able at the issuance of a building permit. Prior to the incorporation of these facilities into the CII', the Fees ~~,~ill not be due until the d~~,~elling is issued a Certificate of Occupanc~~. The developer ma~~ voluntarily pa~~ the full fee ~~-hen the building permit is issued or as other~~,~ise appropriate under applicable la~~-~. C. Payment of Fees in Excess of $20,000 When the amount of pa~~ment for Fees elceeds $20,000 on any given da~~, pa~~ment shall be made in one of the follo~~,~ing wa~~s: 1) paid b~~ check dra~~,~n on a batilc within the State of California, 2) paid. b~ cashier's check, or 3) if paid. in same da~~ funds b~~ a ~s,~ire transfer, the ~~,~ire transfer must be pre-arranged ~~-~ith the City's Finance Division. Do~~,~nto~~,~n Traffic Impact Fee Administrative Guidelines Page 6 D. Pa~~ment Records The Administrative Services Department ~~,~ill record the pa~~ment of the Fees. Records ~~,~ill be maintained to comply ~~-~ith refunding requirements as prescribed b~~ State La~~-~. The Administrative Services Department ~~,~ill obtain a mailing address from each payee, as well as the applicable Assessor's Parcel Number, and. ~~,~ill note the pa~~ee as the entit~~ or person ~~-hose name appears as the applicant for the building permit. The Finance Division ~~,~ill maintain the records for a period of tt~-~entt~ ~~ears from their collection, unless a legal mandate elists for a longer retention. 2. Allotment of De~~eloper Fee Credits The Cite understands the practicalit~~ of having developers construct andlor contribute some of the TIF facilities described in the Resolution and an~~ subsequent replacement resolution. For this reason, the Cite will allot fee credits against the collection of Fees for constructing or contributing TIF facilities. A. Fee Credit /Reimbursement Agreement Required The allotment of fee credits and/or provision for a reimbursement will only occur in accordance ~~-~ith a ~~-~ritten credit/reimbursement agreement bett~,~een the Cite and the developer responsible for the construction of the TIF facilities or dedication of TIF right of ~~,~a~~. 1. All fee credits ~~,~ill be granted b~~ use of a standard agreement appro~°ed b~~ the Cit<~ Attorne~~. 2. This credit/reimbursement agreement ~~,~ill be entered into at the time the improvements are secured andlor the right-of-wa~~ is accepted for dedication. The terms of this agreement may, at the Cit~~'s discretion, be included in the agreement entered into ~~-~ith the Cite to secure certain I)o~~,~nto~~,~n Traffic Impact Fee Administrative Guidelines Page 7 public improvements as contained on a Final Parcel Map or Final Subdivision Map. 3. The developer will pad an administrative fee, as established. in the City 's Master Fee Schedule, prior to the elecution of the credit/reimbursement agreement. The purpose of this administrative fee is to cover the administrative costs associated ~~-~ith establishing and monitoring the credit/reimbursementapreement. 4. An~~ credits, ~~-~hich are unused before all of the TIF improvements are completed shall convert to a right to reimbursement. The right to reimbursement ~~,~ill commence ~~-hen all of the TIF improvements are completed. 5. Neither a credit nor the right to reimbursement shall be increased for inflation or accrue interest. 6. Credits are transferable, ~~-~ith the ~~-~ritten approval of the Cite Manager, provided the credit is transferred to a person/firm having a legal interest in real property ~~-~ithin 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 credit/reimbursement agreement ~~,~ill indicate that the developer has obtained a cope of these administrative guidelines and the~~ ~~,~ere read and understood. VL Calculating the Fee Credits A. General The fee credit/reimbursement agreement will identif~~ the total credit for TIF facilities constructed or right of ~~ a~~ dedicated for a particular development I)o~~,~nto~~,~n Traffic Impact Fee Administrative Guidelines Page 8 project. The contributed land or improvements must be the facilities described in the Resolution andlor an~~ subsequent replacement resolution. B. Determination of Value The Public Worlcs Director ~~,~ill determine the value of the contributed facilities based upon improvement plans submitted b~~ the developer and approved b~~ the C it~~, ~~-~hich plans shall quantif~~ the size of the TIF facilities to be constructed or dedicated. It is recognized that in some cases the scope of construction or dedication ~~,~ill not elactl~~ match the TIF facilities shoe,~n in Attachment B-1 to Elhibit B to the Resolution and Elhibit C to the Resolution. The credits ~~,~ill be the lesser of the follrn~,~ing: a) the estimated cost of the improvements as noted in the Resolution and/or an~~ subsequent replacement resolution: or b) the pro-rated value of the improvement using the standard cost measurements in the Resolution andlor an~~ subsequent replacement resolution. The Fee credits cannot elceed the cost estimates of the improvements in the most recent Fee stud~~ and resolution. In no case shall the fee credits include facilit~~ financing costs. Illusb^atzve Example 1: Assume that a developer dedicates land for the partial ~~-~idening of a major street to offset the Fees due from a development project. To qualif~~ for a credit, this road~~ a~~ ~~-~idening project must be included in the TIF. For each TIF improvement, the Resolution used the appropriate cost measurement per square foot for right-of-wa~~ dedication in calculating the TIF. The Fee credits due to the developer can be calculated b~~ determining the square footage of the land to be dedicated multiplied b~~ the proper square foot cost measurement after automatic annual adjustments based on the change in land acquisition costs. Illusb^atzve Example 2: A Developer constructing multi-famil~~ homes contributes traffic signal improvements (TIF improvement) valued at $1OO,000. Assume that I)o~~,~nto~~,~n Traffic Impact Fee Administrative Guidelines Page 9 the Fee totals $1,360 per d~~,~elling unit. The credit of $100,000 ~~-ill cover appmlimatel~~ 73.53 d~~,~elling units. When the building permit is issued for the 74`x' d~~,~elling unit, the developer ~~~ill have used up the credit and ~~,~ill have to begin pa~~ing the Fee. VII. Use of Fee Credits A. Credits elpire ~~-hen used or ~~-hen all of the TIF improvements are completed, whichever occurs first. B. In the event the fee credits are unused before all of the TIF improvements are completed, the fee credit shall convert to a reimbursement right as provided for under Section X and XI of these guidelines. C. The value of the credits ~~,~ill be listed in the agreement and tracked as the~~ are used b~~ the developer. D. Onl~~ the developer ~~-~ho builds or dedicates the TIF facilities ~~,~ill be entitled to the original or initial credits, until such time as the~~ ma~~ be transferred in accordance ~~-~ith these guidelines. VIII. Use of Fee Credits requires Completion of Facilit~~ or Performance Bonds Fee credits cannot be used b~~ the developer until the developer has either: 1. Dedicated the land or improvements representing the credits to the C its': or 2. Provided the C it~~ ~~-~ith a performance bond and a labor and materials bond or other adequate securit~~ to insure that the improvements ~~,~ill be constructed prior to the first Certificate of Occupanc~~ for anv building that is part of the project. The performance bond or other securit~~ shall be in an amount equal to 100% of the engineer's estimated cost to construct the improvements and the labor and I)ot~,~ntot~,~n Traffic Impact Fee Administrative Guidelines Page 10 materials bond shall be ~~-~ritten b~~ a suret<~ licensed to conduct business in the State of California and approved b~~ the Cite Manager. Illusb^atn~e Example: Assume a developer is in the midst of completing certain street improvements, which ~~,~ill be dedicated to the Cite to offset a portion of the Fee. The developer supplies the Litt- ~~-~ith a right-of-tva~~ 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 Cite is assured that the land t~,~ill be dedicated and the improvements t~,~ill be completed. IX. Transferring of Credits A. The original holder of credits can request a transfer of credits to a person rn~,~ning an interest in propert~~ that is subject to the TIF. Such transactions shall be subject to an administrative transfer fee, which shall cover the City 's administrative costs associated t~-~ith the credit transfer. The administrative transfer Fee is included in the City's Master Fee Schedule. B. There is no limit on the number of times that credits can be transferred bett~,~een developments. X. Reimbursement Rights Reimbursement rights are created from the conversion of Fee credits, t~-~hich occurs t~-hen all of the TIF improvements are completed. Reimbursement t~,~ill be onl~~ from funds collected as Drn~,~ntot~,~n Traffic Impact Fees, and t~,~ill not come from the Cit~~'s General Fund. XL Process for Reimbursement of Reimbursement Rights Within one ~~ear after all TIF improvements are built, the Administrative Services Deparh~nent t~,~ill make an accounting of the TIF funds that are unspent as of the Do~~,~nto~~,~n Traffic Impact Fee Administrative Guidelines Page 11 completion date of all the TIF improvements. The C it<~ ~~,~ill use the remaining funds that are unspent to reimburse holders of reimbursement rights for facilities alread~~ contributed, if an~~ such reimbursement rights elist. Reimbursements ~~,~ill be made in order of creation of the credit/reimbursement agreements. XIL Other Miscellaneous Administrati~~e Guidelines A. Procedures for Construction of Designated Facilities b~~ De~~elopers The improvements to be constructed or dedicated must be submitted to and approved b~~ the Public Works Director no later than 14 calendar da~~s prior to the approval of the Final Map b~~ the Cin~ Council on the development project. The submittal of the improvement plans andlor description of area to be dedicated shall be in sufficient detail as determined b~~ the Public Worlcs Director. The developer constructing or dedicating improvements in lieu of pa~~ing a portion of the Fee must post a performance bond before the issuance of an~~ grading andlor building permits for the construction of the improvements. B. Refunds Refunds of ~vithdra~vn applications will he done in accordance with elisting procedures for paid building permits. • Pa~~able to entit~~ malting pa~~ment or property rn~,~ner of record. • Pa~~able in accordance ~~-~ith State La~~-~. • Not applicable to letters of credit, surve~~ bonds or other instruments taken to secure pa~~ment. C. Annual Re~~ie~~~ of Fee Collection The C its has elisting procedures for comply ing with State La~v in regards to accounting for developer Fees. The Administrative Services Department ~~,~ill maintain records to provide the follo~~,~ing items: I)o~~,~nto~~,~n Traffic Impact Fee Administrative Guidelines Page 12 • A brief description of the Fee: • An identification of the improvements and the percentage of cost of the improvements ~~-~hich the Fee ~~,~ill be elpended upon: and • For improvements ~~-~hich are funded and ~~et to be completed, an identification of an elpected date b~ ~~-~hich construction of the facilities ~~,~ill commence. D. Funds and Accounting The C it<° ~~,~ill incorporate the follo~~,~ing items into its accounting procedures, ~~-~hich are the responsibilit~~ of the Administrative Services Department • The C it< ~~,~ill maintain a separate fund for the collection and elpenditure of Fees. • The C it< ~~,~ill allocate interest to Fees collected in the fund based upon month end cash balances. • The C it< ~~,~ill identif~~ in accordance ~~-~ith State La~~-~ the beginning and ending balance of the funds held for the Fee as of fiscal ~~ear end. • The C it< ~~,~ill identif~~ the amount of Fees collected and interest earned in each fiscal year for Fees. • The C it< ~~,~ill file an annual accounting of all development impact fees, including the Do~~-~ntrn~,~n traffic Impact Fee, ~~-~ith the C'it~~ Council and for public inspection ~~-~ithin 180 da~~s of each fiscal ~~ear end. XIIL Guidelines for Issuing Trip Credits Credit ~~,~ill be issued for dail~~ trips generated b~~ an elisting land use, or b~~ the most recent land use if the site has been vacant for a period of three ~~ears or less prior to the date when a project application is filed with the City . I)o~~,~nto~~,~n Traffic Impact Fee Administrative Guidelines Page 13 A Fee shall be charged and paid for changes to elisting land uses, businesses andlor tenants that require discreti~nar~~ approval b~~ the Cite (i.e. Site Development Rey ie~~-~, Conditional Use Permit, Tentative Map, Rezoning, Specific Plan Amendment or adoption, General Plan Amendment), if the ne~~-~ use is elpected to create a net increase of 100 trips or more during the AM or PM peals hour, after subtracting the credited trips. AM or PM peak hour trips for elisting and proposed land uses ~~,~ill be based upon trip generation rates obtained from ITE Trzp C~eneratzon, SANI)AG Traffzc Cieneratons, or other sources, as determined b~~ the Public Worlcs Director.