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HomeMy WebLinkAboutItem 4.12 Impact Fee Guidelines or 19 82 STAFF REPORT CITY CLERK ` CITY COUNCIL File #600-70 DATE: June 16, 2015 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager " SUBJECT: Amendment to the Consolidated Impact Fee Administrative Guidelines Prepared by Lisa Hisatomi, Assistant Director of Administrative Services EXECUTIVE SUMMARY: The City Council will consider amendments to its Consolidated Impact Fee Administrative Guidelines. Staff currently utilizes administrative guidelines for the administration of several impact fee programs and it includes a section related to the life of the credits and expiration dates of said credits. Staff is proposing that the life of the credits to be extended in perpetuity. FINANCIAL IMPACT: Amending the Guidelines will not have any direct fiscal impact. However, the developer's ability to hold credits in perpetuity could result in a reduction to the amount of reimbursements paid to developers in the future. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution Amending the Consolidated Impact Fee Guidelines. r Submitted By %\ Reviewed By Administrative Services Director Assistant City Manager DESCRIPTION: The City of Dublin maintains Administrative Guidelines for all of its impact fee programs. One important element of the Guidelines is the provision for fee credits and reimbursements to developers who construct and/or dedicate any of the improvements and facilities, for which the Fees are imposed. In past years, these guidelines were separated by the type of fee being charged; however in 2013, the City adopted Consolidated Impact Fee Administrative Guidelines for the Eastern Dublin Traffic Impact Fee, Downtown Impact Fee, Public Impact Fee, Public Facilities Fee, Fire Facilities Fee and Noise Fee (Guidelines) that govern the administration of the respective impact fees (Resolution 122-13). Page 1 of 2 ITEM NO. 4.12 The Guidelines state that the Fee Credits expire when used or 10 years from the date the credit/reimbursement agreement (unless extended an additional five years at the request of the credit holder, whichever occurs first. At the end of the credit period (original 10 years or 15 years if extended), the credits will automatically convert to Right to Reimbursement. On July 15, 2014, the City Council adopted Resolution 117-14 amending the Guidelines by allowing a credit holder who has been granted a five-year extension to request one additional 1- year extension, at the discretion of the City Manager, for a total credit life of 16 years, and then the Fee Credit will convert to a Right to Reimbursement. This amendment provided Staff with the needed time to identify more substantial revisions that would likely be necessary to the Guidelines pertaining to the Right to Reimbursement. In order to allow developers to maximize the utilization of fee credits, Staff recommends the following amendments to allow developers utilizing the Fee Credits to their projects: • Allow Fee Credits to be extended and held in perpetuity at the end of credit period (original 10 years, 15 or 16 years if extended) • One-time allowance for current Right to Reimbursement agreements to be re-converted back to Fee Credits • Approve the conversion of credits from one parkland and improvement category to another parkland and improvement based on land and improvement values conversion ratio. This would be subject to the City Manager's approval. Currently, the City has 73 Fee Credit/Right to Reimbursement agreements with balances. Of those agreements, 21 credit agreements (or approximately $17 million in credits) have been extended for five years and will expire in the next three years. There are 12 credit holders totaling $2.2 million eligible in the Right to Reimbursement program. One of the City's main fee credit holders is the Alameda County Surplus Property Authority (ACSPA). Allowing their credits to expire and go into Right to Reimbursement — especially the Traffic Impact Fee credits — could have a detrimental impact on the City's economic development efforts. Most of the ACSPA remaining acreage around the Dublin Transit Center is zoned for Campus Office development and these credits could serve as an incentive for future office development in that area, including Site 15A at the northeast corner of Arnold Road and Dublin Blvd. which is currently being solicited in the marketplace by broker Jones Lang LaSalle. If office users or developers are unable to acquire fee credits from ACSPA, the Traffic Impact Fee, may prove to be too costly for development to absorb over the next several years. In a separate staff report item on tonight's agenda, Staff also recommends establishing an annual credit/Right to Reimbursement maintenance and monitoring fee to cover the City's administrative costs. The fee is being proposed as part of the update to Master Fee Schedule effective Fiscal Year 2015-16. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Amending the Consolidated Impact Fee Guidelines 2. Exhibit A to Resolution - City of Dublin Amended Consolidated Impact Fee Administrative Guidelines 3. July 15, 2014 Staff Report with attachments Page 2 of 2 RESOLUTION NO. XX - 15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN *************************** AMENDING THE CONSOLIDATED IMPACT FEE GUIDELINES WHEREAS, on July 16, 2013, the City Council adopted the Consolidated Impact Fee Guidelines ("the Guidelines"), which superseded the Guidelines previously adopted for the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee and Public Facilities Fee (Resolution No. 122-13). WHEREAS, the Guidelines limit the "life" of impact fee credits to 10 years, with the credit holder being eligible for an additional 5 year extension upon request, and after the credits expire they convert to a "right to reimbursement". WHEREAS, on July 15, 2014, the City Council adopted the amendment to the Guidelines by allowing a credit holder to extend expiring credits with 5 year extension for an additional year (Resolution No. 117-14). WHEREAS, to allow developers to maximize the utilization of impact fee credits, the City desires to extend the "life" of impact fee credits. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby amend Resolution No. 117-14, as follows: 1. Allowing Fee Credits to exist in perpetuity and not convert to a right to reimbursement at the end of credit period. 2. One-time allowance for current Right to Reimbursement agreements to be re-converted to Fee Credits. 3. City Manager's authorization to approve the conversion of credits from one parkland and improvement category to another parkland and improvement based on land and improvement values conversion ratio. BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby adopt the Amended Consolidated Impact Fee Guidelines attached hereto as Exhibit A. PASSED, APPROVED AND ADOPTED this 16 n day of June, 2015, by the following vote. AYES- NOES- ABSENT- ATTEST- Mayor City Clerk EXHIBIT A CITY OF DUBLIN CONSOLIDATED IMPACT FEE ADMINISTRATIVE GUIDELINES L Introduction/Overview These guidelines apply to the Downtown Traffic Impact Fees (adopted by the City Council of the City of Dublin through Resolution 210-04 and as subsequently amended), the Eastern Dublin Traffic Impact Fees (adopted by the City Council of the City of Dublin through Resolution 1-95 and as subsequently amended), the Public Facilities Fees (adopted by the City Council of the City of Dublin through Resolution 32-96 and as subsequently amended), the Fire Facilities Fees (adopted by the City Council of the City of Dublin through Resolution 37-97 and as subsequently amended), Noise Mitigation Fee (adopted by the City Council of the City of Dublin through Resolution 33-96 and as subsequently amended), and Nonresidential Development Affordable Housing Impact Fee (adopted by the City Council of the City of Dublin through Resolution 70-05 and as subsequently amended) which fees are, unless otherwise provided, hereinafter referred to as the "Fee" or "Fees." Except as otherwise provided herein, terms used in these guidelines shall be defined in the same manner as such terms are defined in the Resolution. 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 Specific Plans, and the most recent Impact Fee Studies. Such reference documents are subject to change and may affect the application of these guidelines. II. Authority of City Manager to Interpret Situations Not Covered Should situations arise not covered by these guidelines, the City Manager will have the authority to determine how the resolutions, ordinances, guidelines and agreements will be administered. Such interpretations by the City Manager will be in writing. III. Fee Administration A. Responsible Departments 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 Department is responsible for determining the number of vehicle trips per Fee program assigned to the project. B. Effective Fees The Fee will be collected at the filing of final map and/or due at the issuance of building permit for the development project, unless otherwise provided in the applicable Fee Resolution, or developer enters into a fee deferral agreement with the City. 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 projects will be calculated as provided for in the Fee Resolutions. However, in certain circumstances, the applicable resolutions may not appropriately reflect or apply to a particular project. For example, mixed use projects and projects that involve land uses that are not included in the Resolution. For non-residential development projects in which the land use is not included in the definitions contained in the applicable Fee resolution, the Community Development Director will determine which of the defined categories is appropriate, maintaining as much consistency as possible with the definition of such terms. For mixed-use development projects, the Community Development Director will determine the projected percentage of each of the uses at the time the Final Map or other appropriate entitlement is approved. The Fee will be calculated on a pro-rata basis for each different use. 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 determined by the Community Development Director. Any Fee discrepancy as a result of a different final use of the property will be calculated and reconciled at the time that a building permit is issued for interior tenant improvements, developer may subject to additional Fee or refund. This fee calculation shall be at the rate in effect at the issuance of building permit. For mixed-use projects that contain both residential and non-residential portions, the Fee will be based upon the residential per dwelling unit fee schedule for the residential portion and the non-residential per 2 square foot schedule for the non-residential portion. The non-residential portion will be allocated among the uses as described above in these guidelines. Quasi-public uses (churches, non-profit organizations, etc.) will be subject to the Fees. For these uses, the Community Development Director will determine which of the categories most appropriately reflects the land use and allocate the project to this category. Affordable housing projects developed by government agencies and non-profit entities will be subject to the same Fees that are assessed on private residential development. If an applicant disagrees with the Fee calculated based on trips generated by the proposed project per respective Fee program, including but not limited to quasi-public uses, applicant may make a written request to the Public Works Director, requesting that the City undertake a specific traffic study for the purpose of determining the estimated trip generation of the proposed development project. The study will be paid for by the applicant. IV. Payment Records The Administrative Services Department will record the payment of the 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 payor, as well as the applicable Assessor's Parcel Number, and will note the payor as the entity or person whose name appears as the applicant for the building permit. The Administrative Services Department will maintain the records for a period of ten years from their collection, unless a legal mandate exists for a longer retention. V. Other Miscellaneous Administrative Guidelines A. Refunds Refunds of Fees associated with withdrawn applications or projects on which construction has not commenced, will be done in accordance with the procedures outlined in the Dublin Municipal Code 7. 28.450. • Payable to entity making payment or property owner of record. 3 • Payable in accordance with State Law. • Not applicable to letters of credit, bonds or other instruments taken to secure payment. If, pursuant to said procedures for paid building permits, a refund is no longer available, and if, within 10 years of the original payment of the Fees, new building permits are issued for a project on the subject property, the developer of the new project shall be required to pay only the difference between the amount of the Fees that were originally paid, and the amount of the Fees in effect at the time of issuance of building permits for the new project. This calculation of the difference in Fee amounts shall be done on a Fee by Fee basis. Thus, if any one Fee is reduced or eliminated between the time of the original payment and the issuance of building permits for the new project, the original payment amount for that reduced or eliminated Fee shall not be included in the calculation of the amount owed for the other Fees. B. 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 Fee; • An identification of the improvements and the percentage of cost of the improvements which the 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. C. 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 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 Fee as of fiscal year end. 4 • The City will identify the amount of Fees collected and interest earned in each fiscal year for Fees. • The City will provide a description and accounting of any inter-fund transfers made by the Fee Fund. • The City will calculate reimbursements annually within 180 days of each fiscal year end. • The City will file an annual accounting of all development impact fees with the City Council and for public inspection within 180 days of each fiscal year end. D. Administrative Fees Developers will pay the City administrative fees, provided the fees are established in the City's Master Fee Schedule, to cover the costs associated with: • The establishment of the credit/reimbursement agreement • Credit transfers • Annual credit/RTR maintenance and monitoring. VL Developer Fee Credits Section VI applies only to the Downtown Traffic Impact Fee, Eastern Dublin Traffic Impact Fee, Public Facilities Fee, Fire Facilities Fee, Non-residential Affordable Housing Impact Fee and the definitions contained in the Resolutions establishing and amending said Fees shall apply. Unless otherwise indicated, all references to the "Fee" or "Fees" in this section shall mean only the Downtown Traffic Impact Fee, Eastern Dublin Traffic Impact Fee, Public Facilities Fee, and Fire Facilities Fee, and Non-residential Affordable Housing Impact Fee. A. General. Section VI establishes the authority for providing credits and/or reimbursement to developers who construct and/or dedicate any of the improvements and facilities for which the Fees are imposed. When such public improvements and facilities are constructed and/or dedicated by a developer, the developer shall be given a credit when appropriate to be applied against the Fees due for the development project. The amount of the credit shall be determined pursuant to these guidelines. If the amount of the credit is greater than the Fees due for the development project, the developer may, subject to the restrictions 5 described herein, use the credit toward the Fees for another development project or transfer the credit to another eligible developer in accordance with these guidelines. If the developer cannot use or transfer the credit within ten years, then the credit will convert to a reimbursement right unless the developer first extends the credits as provided for in Section VLG of these Guidelines. B. 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 Fee facilities or dedication of land. 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. 3. Any credits, which are unused ten years following their creation with a balance, pursuant to Section VLG.a of these Guidelines, shall convert to a right to reimbursement, unless the developer first extends the credits as provided for in Section VLG.b of these Guidelines. 4. Neither a credit nor the right to reimbursement shall either be increased for inflation or accrue interest, park land right to reimbursement amount shall be based on land value at the time of dedication. 5. Credits are transferable, with the written approval of the City Manager, provided that the administrative fee is paid, as specified in these guidelines. 6. The developer will sign the fee credit/reimbursement agreement attesting that it obtained a copy of these administrative guidelines and they were read, understood, and accepted. 6 7. With respect to the Eastern Dublin Traffic Impact Fee and the Downtown Traffic Impact Fee credits earned by constructing improvements can only be used to offset fees for that same category. The Fee for other categories will be paid by the developer as specified in these guidelines. Fee credits will not be mixed between the fee categories. For example, with respect to the Eastern Dublin Traffic Impact Fee, unused credits from Section I (Eastern Dublin Traffic Improvements) cannot be used to offset the Section II component of the Eastern Dublin Traffic Impact Fee. 8. With respect to the Eastern Dublin Traffic Impact Fee, no fee credits shall be established for the "Section II Residential BART Garage" component of the Fee. Payments from those monies shall be made in accordance with subsection VLL below. 9. With respect to the Public Facilities Fee, the City Manager may approve the conversion of credits from one park land category to another park land category based on the land values conversion ratio, or may approve the conversation of credits from one park improvement category to another park improvement category. Park land credits cannot convert to park improvement credits nor can park improvement credits convert to park land credits. Any such conversion shall require an amendment to the credit/reimbursement agreement that documents the existing credits or a new credit/reimbursement agreement, if the credits have not been documented. Requests for conversion under this section must be made in writing and the decision to approve or deny a request is made at the sole discretion of the City Manager. The City Manager shall approve the conversion only if he or she finds that the conversion would not materially change the Public Facilities Fee program's ability to deliver the acreage in each category specified in program. This provision does not apply to any other category in the Public Facilities Fee program. C. Calculating the Fee Credits 1. General 7 The fee credit/reimbursement agreement will identify the total credit for Fee improvements/facilities constructed or land dedicated for a particular development project. The contributed land or improvements must be the facilities described in the applicable Fee Resolutions and/or any subsequent replacement resolutions. 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. 2. Determination of Value The Public Works Director will determine the value of the contributed improvements/facilities based upon improvement plans submitted by the developer and approved by the City, which plans shall quantify the size of the Fee facilities to be constructed or dedicated. It is recognized that, in some cases, the scope of construction or dedication will not exactly match the Fee facilities shown in the exhibits to the Fee Resolution. The credits will be the lesser of the following: a) the estimated cost of the improvements as noted in the Resolution and/or any subsequent replacement resolution; or b) the pro-rated value of the improvement using the standard cost measurements in the Resolution and/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 (Downtown Dublin Traffic Impact Fee): Assume that a developer dedicates land for the partial widening of a major street to offset the Fees due from a development project. To qualify for a credit, this roadway widening project must be included in the Downtown Traffic Impact Fee program. 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 Fee. The Fee credits due to the developer can be calculated by determining the square footage of the land to be dedicated multiplied by 8 the proper square foot cost measurement after automatic annual adjustments based on the change in land acquisition costs Illustrative Example 2 (Downtown Dublin Traffic Impact Fee): A Developer constructing multi-family homes contributes traffic signal improvements (TIF improvement) valued at $200,000. Assume that the Fee at the time totals $2,497 per dwelling unit. The credit of $200,000 will cover approximately 80.10 dwelling units. When the building permit is issued for the 81st dwelling unit, the developer will have used up the credit and will have to begin paying the Fee. Illustrative Example 3 (Eastern Dublin Traffic Impact Fee): 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 Eastern Dublin Traffic Impact Fee program. 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. The fee credits due to the developer can be calculated by determining the square footage of the land to be dedicated multiplied by per square foot cost measurement per Fee program. Illustrative Example 4 (Eastern Dublin Traffic Impact Fee): A developer constructing single family homes contributes traffic signal improvements (Section I improvement) valued at $200,000. Assume that the Traffic Impact Fee at the time totals $9,062 per home, which is comprised of the Section I portion of$7,207 and the Section II portion of $1,855. The credit of$200,000 can only be used against the developer's Section I Fee of $7,207 per home, which will cover approximately 27.75 homes. When the building permit is issued for the 28th home, the developer will have used up the credit and will have to begin paying the Section I Fee. The Section II portion of the Fee must be paid at the issuance of each building permit for all homes included in the development, as the Section I credit cannot be used to offset these portions of the Fee. 9 Illustrative Example 5 (Public Facilities Fee): Assume that a developer contributes 10 acres of land for a planned 20 acre community park to offset the Fees due for the Community Parks Land fee component. The last adopted fee study used a standard cost estimate of$420,000 per acre for calculating the cost of improved community parkland. The fee credit due to the developer will be calculated using this cost estimate (10 acres $420,000 per acre= $4,200,000). Illustrative Example 6 (Public Facilities Fee): A developer constructing single family homes in Dublin contributes neighborhood park improvements valued at $200,000. The Neighborhood Parks Improvements portion of the Fee for a single family home is $2,280 of the total Fee of $32,643. The developer must pay a Fee of $30,363 for each single- family home (total Fee of$32,643 less credit of$2,280) until the $200,000 credit is used up. This credit will cover the Neighborhood Parks, Improvements component of the Fee for the first 87 single-family homes constructed ($200,000/$2,280=87.72). When the developer applies for the building permit for the 88th home, he or she will begin paying this component of the Fee with the balance of the Public Facilities Fee due for the project. D. Use of Fee Credits 1. Credits expire when used or 10 years from the date of the credit/reimbursement agreement, whichever occurs first. 2. The life of credits may be extended by 5 years at the request of the credit holder (for a total life of 15 years). 3. A credit holder that has been granted a 5-year extension may request one additional 1-year extension (for a total life of 16) years, at the discretion of the City Manager. 10 The value of the credits will be listed in the agreement and applied as credits to the Fees as authorized by the developer. The City's Administrative Services Department will keep record of credit utilization and balance. 4. Only the developer who builds or dedicates the Fee facilities will be entitled to the original or initial credits, until such time as they may be transferred in accordance with these guidelines. E. 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 constructed improvements/facilities representing the credits to the City; or 2. Provided the City with a performance bond and a labor and materials bond or other adequate security to insure that the improvements will be constructed prior to the first Certificate of Occupancy for any building that is 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 written by a surety licensed to conduct business in the State of California and approved by the City Manager or designee. Illustrative Example: Assume a developer is in the midst of completing certain improvements, which will be dedicated to the City to offset a portion of the 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. F. Transferring of Credits 1. 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 the Fee in question. Such transactions shall be 11 subject to an administrative fee, which shall cover the City's administrative costs associated with the credit transfer. The administrative fee shall be established in the City's Master Fee Schedule. 2. There is no limit on the number of times that credits can be transferred between developments. 3. In certain circumstances, and as required in the interest of equity, the City Manager may, at his or her sole discretion, authorize the transfer of credits to a person who does not own an interest in property subject to the Fee. G. Options After Initial 10-year or Extended Credit Life At or prior to expiration of the credit, the developer has the following options: a. The expired unused fee credit shall automatically convert to a reimbursement right as provided for under these guidelines, unless Developer submits a written request for extension no later than three (3) months prior to the credit expiration date or with City Manager's approval if the request passes the City's required timeframe. The period for right to reimbursement extends ten (10) years from the date of expiration. b. As an alternative, Developer can request that credits exist in perpetuity and not convert to a right to reimbursement. To exercise this option, Developer must make a request, in writing, no less than three (3) months prior to credit expiration, or with City Manager's approval if the request passes the City's required timeframe. Developer must secure a written approval from the City Manager or designee for the request. Credits cannot be re-converted to a right to reimbursement. C. Developers that hold a right to reimbursement on June 16, 2015 may request that the right to reimbursement convert back to credits that would exist in perpetuity. Such a request must be made in writing by September 16, 2015, or with City Manager's approval if the request passes the City's required timeframe. H. Reimbursement Rights (Excluding EDTIF Section II Residential BART Garage Fees) 12 Reimbursement rights are created from the conversion of Fee credits, which occurs 10 years after the initial date of the credit/reimbursement agreement, or after credit extension (5 or 6 years, depends the number of years a credit is extended). Right to reimbursement life is 10 years. Reimbursement rights are subject to the following specific guidelines: 1. Reimbursement will be only from funds that were collected in payment of the same Fee as the one for which a developer is seeking reimbursement or, in the case of the Eastern Dublin Traffic Impact Fee, 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. 2. The City will determine the amount of funds available for reimbursement on an annual basis based on Fee programs, such as the Eastern Dublin and Downtown Impact Fees, and the Public Facilities Fee programs. L Process for Reimbursement of Reimbursement Rights 1. 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 Fees collected for the fiscal year that just ended. The Administrative Services Department will also determine, for each of the Fees, the amount of Fee funds that are unspent and unplanned. 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. 2. Allocating the Reimbursement Set-Aside to Outstanding Reimbursement Rights In the event that the City designates that a reimbursement set-aside is available, 50% 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 according to their amounts outstanding, including the 13 remaining un-reimbursed portion of the oldest agreement. Unused reimbursement set-aside funds will not be carried over to another fiscal year. The following example illustrates this allocation: Illustrative Example: During one fiscal year, the City collects $88,000 in Fees for Eastern Dublin TIF improvements. The total outstanding reimbursements owed for the Eastern Dublin TIF 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 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 follows: Holder of Current Value of Percent of Total Amt.of$22,000 Reimbursement Reimbursement Reimbursement Reimbursements Reimbursement Balance Owed Outstanding Distributed Remaining Developer A $28,000 35.90% $7,898.00 $20,102.00 Developer B $20,000 25.64% $5,640.80 $14,359.20 Developer C $30,000 38.46% $8,461.20 $21,538.80 TOTAL $78,000 $22,000.00 $56,000.00 J. Procedures for Construction of Designated Facilities by Developers 1. With respect to the Downtown Dublin Traffic Impact Fee and the Eastern Dublin Traffic Impact Fee, the improvements requested to be constructed or dedicated must be submitted for approval in writing to the Public Works Director no later than 30 calendar days prior to the approval of the Final/Parcel Map on the development project. Absent a Map, a letter must be submitted for 14 approval prior to the approval of the improvement agreement. The submittal of the improvement plans and/or description of area to be dedicated shall be in sufficient detail, as determined by the Public Works Director, for the Public Works Director to make a determination regarding the approval. The developer constructing or dedicating improvements in lieu of paying a portion of the Fee must post a performance bond before the issuance of any grading and/or building permits for the construction of the improvements. 2. With respect to the Public Facilities Fee (PFF), developers may, with City approval, be permitted to design and construct facilities included in the Public Facilities Fee (PFF) program. The design and construction materials/methods must be in accordance with standard City specifications, and City inspectors shall be responsible for construction inspection throughout the duration of the construction period. The PFF Facilities to be constructed or dedicated by the developer must be submitted for approval in writing to the Public Works Director no later than 30 calendar days prior to the approval of the Final/Parcel Map or improvement program on the development project. The submittal of the improvement plans and/or description of area to be dedicated shall be in sufficient detail, including the layout of timeline/milestones of the construction, as determined by the Public Works Director, for the Public Works Director to make an informed determination regarding the approval. The developer constructing or dedicating PFF Facilities in lieu of paying a portion of the Fee must post a performance bond and a labor and materials bond before the issuance of any grading and/or building permits for the construction of the PFF Facilities. K. Guidelines for Issuing Trip Credits to Miscellaneous Infill Development-Downtown Dublin Traffic Impact Fee Only 1. Trip credit shall be determined by the City based upon the adopted trip generation rates as specified in the Fee program. Examples of how trip credits can be applied to miscellaneous infill development projects within the Downtown TIF area are presented below. 15 Illustrative Example 1: User X moves his/her fast food restaurant business into an individual (standalone) building located within the Downtown TIF area. Previous use of the building consisted of a sit-down restaurant, which was vacated approximately two years prior to User X obtaining his/her use permit. Would User X be entitled to trip credit? Answer: Yes, he/she would be entitled to trip credit for the previous sit-down restaurant use which generates fewer trips than a fast food restaurant. User X would pay TIF based on the net trips estimated for his/her project. Note: If the subject building was vacated more than five years prior to the date when the use permit was issued to User X, User X would then not receive any trip credit. Illustrative Example 2: User X (insurance company office) and User Y (dental office) occupy office space in two separate general office buildings (building A and building B, respectively). Both buildings are located within the Downtown TIF area. The two users have decided to switch office spaces (e.g., User X would relocate to the space in building B and User Y would relocate to the space in building A). Would either user be required to pay TIF? Answer: No, because as each user moves into the other space, he/she would receive full trip credit for the previous use, based on the uniform trip generation rate for Standard Commercial Office as specified in the Fee program. Note: Although User Y operates a dental office, which generates more trips than an insurance company office (User X), the same trip generation rate (i.e., Standard Commercial Office) is used in both cases to calculate the TIF, as both uses are proposed to take place within a general office building. 16 Illustrative Example 3: User X proposes to change the use of his/her individual (standalone) space within the Downtown TIF area from Health Club to Bowling CenterNideo Arcade. How would the TIF be determined? Answer: The TIF would be determined based on the net trips estimated for the proposed project. For example, User X would be charged TIF based on the proposed Bowling CenterNideo Arcade use, but would receive trip credit for the discontinued Health Club use. Illustrative Example 4: User X proposes to establish an Urgent Care Medical Office within a general office building by replacing existing retail/restaurant uses located on the first floor of the building. How would the trip credit be determined? Answer: The trip credit would be determined based on the trip generation rate for Standard Commercial Office. Note: The TIF would be based upon the increase in trips due to the proposed project (e.g., the difference between Clinic trips and Standard Commercial Office trips). 2. Trip credits shall follow the land use and not the user. For example, assume User X relocates from Space A to Space B, both of which are located within the Downtown TIF area. User X shall not receive trip credit for vacating Space A. User X shall be charged the appropriate TIF amount for moving into Space B, subject to receiving trip credit as specified below. Similarly, the appropriate TIF amount shall be charged to the next user of Space A, subject to the appropriate trip credit. 3. Trip credit associated with unoccupied space shall be issued if, and only if, the space has been vacant for five (5) calendar years or less prior to the date when a use permit is issued to the new user. 17 4. TIF calculations/trip credit for uses, other than Urgent Care Medical Office, located within a general office building that houses multiple tenants (such as professional services, insurance companies, investment brokers, bank or savings and loan institutions, medical offices, restaurant or cafeteria, retail facilities, etc.) shall be based upon a uniform trip generation rate for Standard Commercial Office as specified in the Fee Program. For Urgent Care Medical Office use within a general office building, the trip generation rate for Clinic, as specified in the Fee program, shall be used to calculate the TIF and the trip credit. 5. Trip credit for uses located within a shopping center containing retail stores, as well as non- merchandising facilities (such as office buildings, movie theaters, restaurants, post offices, banks, health clubs, recreational facilities, etc.) shall be based upon a uniform trip generation rate for the appropriate type of Shopping Center as specified in the Fee program. L. Eastern Dublin Traffic Impact Fee-Section II Residential BART Garage 1. Payment to Alameda County Surplus Property Authority (ACSPA) for $6 million of BART Garage Costs (Section II Residential BART Garage) With respect to the Eastern Dublin Traffic Impact Fee, payment of Section II Residential BART Garage Fees, payment shall be made to the Alameda County Surplus Property Authority (ACSPA), which is responsible for the parking garage construction and dedication of the improvement to the Bay Area Rapid Transit (BART) District for public. 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 million dollars). Payment to Alameda County Surplus Property Authority is subject to the following specific guidelines: a. The maximum to be disbursed from fees collected shall be six million dollars ($6,000,000), which amount shall not be increased for any reason including inflation. In addition, any accrued interest pending disbursement shall be disbursed to ACSPA. 18 b. Disbursement will be only from the Eastern Dublin Traffic Impact Fees Section II Residential BART Garage fee, and will not come from any other source including the City's General Fund. C. The amount disbursed will depend on the payment 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 any. e. The procedure for distributing the disbursements to ACSPA is described below. 2. 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 by BART and made available for public use, the ACSPA shall provide to the City a written certification of the completion of the BART Garage. ii. Within 45 days of receipt of the certification described above, City 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 quarterly balance of Section II BART Garage Fees and the earning rate applied to pooled funds managed by 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 below. b. Annual Determination of Section II Residential BART Garage Fee Funds Available for Payment 19 i. Within 180 days 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 previously 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 available, to the extent that the total distribution including previous payments, excluding any amounts paid as interest, does not exceed the maximum amount described above. The Administrative Services Department shall annually report to the ACSPA the current balance remaining Section II Residential BART Garage fees that may be paid. 20 or �9` - 82 STAFF REPORT CITY CLERK ` CITY COUNCIL File # 600-70 DATE: July 15, 2014 TO: Honorable Mayor and City Councilmembers l FROM: Christopher L. Foss, City Manager " SUBJECT: Amendment to the Consolidated Impact Fee Administrative Guidelines Prepared by Linda Smith, Assistant City Manager EXECUTIVE SUMMARY: City Staff currently utilizes administrative guidelines for the administration of several impact fee programs, including the Eastern Dublin Traffic Impact Fee (EDTIF). The EDTIF guidelines include a section related to the use of fee credits and the expiration dates of said credits. Staff is proposing that the life of the credits could be extended one additional year at the discretion of the City Manager. FINANCIAL IMPACT: None. RECOMMENDATION: Staff recommends that the City Council adopt a Resolution Amending the Consolidated Impact Fee Guidelines for the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee, Public Facilities Fee, Fire Facilities Fee, and Noise Fee. Reviewed By Assistant City Manager DESCRIPTION: The City of Dublin has adopted guidelines that govern the administration of the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee, Public Facilities Fee, Fire Facilities Fee, and Noise Fee. These guidelines were approved by the City Council on July 16, 2013 (Attachment 1). One section of the guidelines (Section VI) outlines how the City treats Developer Fee Credits for the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee, and the Public Facilities Fee. The section establishes the authority for providing credits and/or reimbursement to developers who construct and/or dedicate any of the improvements and facilities for which the Page 1 of 2 ITEM NO. 4.8 Fees were imposed. The section includes topics such as Fee Credit/Reimbursement Agreement, Calculation of Fee Credits and Use of Fee Credits, to name a few. One aspect of the Use of Fee Credits section of the guidelines states that the Fee Credits expire when used or 10 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. At the end of that time period (total of 15 years), the credits convert to a Right to Reimbursement (Sections H and I of the guidelines). At this time, the City of Dublin is party to a total of 82 credit/reimbursement agreements. Of those agreements, a total of 25 credit/reimbursement agreements have been extended the additional five years. A total of 25 credit/reimbursement agreements are due to convert to a Right to Reimbursement (RTR) in the next five years. A total of nine credit agreements have already converted to RTR. One of the parties that received the five-year extension of the credit/reimbursement agreement is the Alameda County Surplus Property Authority (ACSPA). ACSPA was one of the first developers in the Eastern Dublin Specific Plan area and constructed a great deal of the backbone infrastructure between the Iron Horse Trail (to the west) and Tassajara Road (to the east). The construction of those improvements was in excess of the EDTIF requirements for the projects sites in the area, so ACSPA has carried TIF credits since 1999. ACSPA has entered into a total of seven TIF credit/reimbursement agreements totaling $15.4 million. Each of those agreements has been extended an additional five years, with the first credit extension date ending in August 2014 (totaling approximately $8.5 million in credits). ACSPA would like to use their TIF credits on a few projects in the near future (ex. County Courthouse) that would require the TIF credits to be extended beyond their current 15-year timeframe. In order to accommodate that request, Staff would propose that guidelines be amended to allow a credit holder to request an additional one-year extension, at the discretion of the City Manager, for a credit life of 16 years (Attachment 2). A resolution amending the consolidated impact fee guidelines has been included as Attachment 3. It is Staff's opinion that the proposed revision would provide the opportunity to look more closely at the TIF guidelines and see what impacts (if any) the current 15-year credit Iifespan would have on other developers holding credits throughout the City. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of the Staff Report was provided to the Alameda County Surplus Property Authority. ATTACHMENTS: 1. July 16, 2013 Staff Report w/attachments 2. Consolidated Impact Fee Administrative Guidelines (w/redline) 3. Resolution Amending the Consolidated Impact Fee Guidelines 4. Exhibit A to Resolution Page 2 of 2 RESOLUTION NO. XX - 14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * AMENDING THE CONSOLIDATED IMPACT FEE GUIDELINES FOR THE EASTERN DUBLIN TRAFFIC IMPACT FEE, DOWNTOWN DUBLIN TRAFFIC IMPACT FEE, PUBLIC FACILITIES FEE, FIRE FACILITIES FEE AND NOISE FEE WHEREAS, on July 16, 2013, the City Council adopted the Consolidated Impact Fee Guidelines ("the Guidelines"), which superseded the Guidelines previously adopted for the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee and Public Facilities Fee. WHEREAS, the Guidelines presently limit the "life" of impact fee credits to 10 years, with the credit holder being eligible for an additional 5 year extension upon request, and after the credits expire they convert to a "right of reimbursement." WHEREAS, in order to consider its options for handling the anticipated expiration of various credits, the City desires to authorize a credit holder to extend expiring credits for an additional year. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby amend subsections VI.E.1 and VI.E.2 to read as follows: 1. Credits expire when used or 10 years from the date of the credit/reimbursement agreement, whichever occurs first. The life of credits may be extended by 5 years at the request of the credit holder (for a total life of 15 years), and, in addition, a credit holder that has been granted a 5-year extension may request one additional 1-year extension (for a total life of 16 years). The additional 1-year extension is at the discretion of the City Manager. 2. In the event the fee credits are unused at expiration, the fee credit shall convert to a reimbursement right as provided for under these guidelines. PASSED, APPROVED AND ADOPTED this 15th day of July, 2014, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 2292092.1 CITY OF DUBLIN CONSOLIDATED IMPACT FEE ADMINISTRATIVE GUIDELINES L Introduction/Overview These guidelines apply to the Downtown Traffic Impact Fees (adopted by the City Council of the City of Dublin through Resolution 210-04 and as subsequently amended), the Eastern Dublin Traffic Impact Fees (adopted by the City Council of the City of Dublin through Resolution 1-95 and as subsequently amended), the Public Facilities Fees (adopted by the City Council of the City of Dublin through Resolution 32-96 and as subsequently amended), the Fire Facilities Fees (adopted by the City Council of the City of Dublin through Resolution 37-97 and as subsequently amended) and the Noise Fee (adopted by the City Council of the City of Dublin through Resolution 33-96), which fees are, unless otherwise provided, hereinafter referred to as the "Fee" or "Fees." Except as otherwise provided herein, terms used in these guidelines shall be defined in the same manner as such terms are defined in the Resolution. 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 Specific Plans, and the most recent Impact Fee Studies. Such reference documents are subject to change and may affect the application of these guidelines. II. Authority of City Manager to Interpret Situations Not Covered Should situations arise not covered by these guidelines, the City Manager will have the authority to determine how the resolutions, ordinances, guidelines and agreements will be administered. Such interpretations by the City Manager will be in writing. III. Fee Administration A. Responsible Departments 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 Department is responsible for determining the number of vehicle trips assigned to the project. Unless otherwise provided in the applicable Fee Resolution, the Fee will be collected with the payment for the building permit for the development project. EXHIBIT A Consolidated Impact Fee Administrative Guidelines 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 projects will be calculated as provided for in the Fee Resolutions. However, in certain circumstances, the applicable resolutions may not appropriately reflect or apply to a particular project. For example, mixed use projects and projects that involve land uses that are not included in the Resolution. For non-residential development projects in which the land use is not included in the definitions contained in the applicable Fee resolution, the Community Development Director will determine which of the defined categories is appropriate, maintaining as much consistency as possible with the definition of such terms. For mixed-use development projects, the Community Development Director will determine the projected percentage of each of the uses at the time the Final Map or other appropriate entitlement is approved. The Fee will be calculated on a pro-rata basis for each different use. 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. Any additional Fee owed as a result of a different final use of the property will be calculated and collected at the time that a building permit is issued for interior tenant improvements. This fee calculation shall be at the rate in effect at the time of final inspection. No refund of the Fee will be given if the resulting uses are different from the projected land use. For mixed-use projects that contain both residential and non-residential portions, the Fee will be based upon the residential per dwelling unit fee schedule for the residential portion and the non-residential per 1 EXHIBIT A Consolidated Impact Fee Administrative Guidelines square foot schedule for the non-residential portion. The non-residential portion will be allocated among the uses as described above in these guidelines. Quasi-public uses (churches, non-profit organizations, etc.) will be subject to the Fees. For these uses, the Community Development Director will determine which of the categories most appropriately reflects the land use and allocate the project to this category. Affordable housing projects developed by government agencies and non-profit entities will be subject to the same Fees that are assessed on private residential development. 1. Where the Fee in question is calculated based on trips generated, including but not limited to quasi-public uses, the Public Works Director 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. IV. Payment Records The Administrative Services Department will record the payment of the 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 payor, as well as the applicable Assessor's Parcel Number, and will note the payor as the entity or person whose name appears as the applicant for the building permit. The Finance Division of the Administrative Services Department will maintain the records for a period of ten years from their collection, unless a legal mandate exists for a longer retention. V. Other Miscellaneous Administrative Guidelines A. Refunds Refunds of Fees associated with withdrawn applications or projects on which construction has not commenced, will be done in accordance with existing procedures for refunds of paid building permits. • Payable to entity making payment or property owner of record. • Payable in accordance with State Law. 2 EXHIBIT A Consolidated Impact Fee Administrative Guidelines • Not applicable to letters of credit, bonds or other instruments taken to secure payment. If, pursuant to said procedures for paid building permits, a refund is no longer available, and if, within 10 years of the original payment of the Fees, new building permits are issued for a project on the subject property, the developer of the new project shall be required to pay only the difference between the amount of the Fees that were originally paid, and the amount of the Fees in effect at the time of issuance of building permits for the new project. This calculation of the difference in Fee amounts shall be done on a Fee by Fee basis. Thus, if any one Fee is reduced or eliminated between the time of the original payment and the issuance of building permits for the new project, the original payment amount for that reduced or eliminated Fee shall not be included in the calculation of the amount owed for the other Fees. B. 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 Fee; • An identification of the improvements and the percentage of cost of the improvements which the 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. C. 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 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 Fee as of fiscal year end. 3 EXHIBIT A Consolidated Impact Fee Administrative Guidelines • The City will identify the amount of Fees collected and interest earned in each fiscal year for Fees. • The City will provide a description and accounting of any interfund transfers made by the Fee Fund. • The City will calculate reimbursements annually within 180 days of each fiscal year end. • The City will file an annual accounting of all development impact fees with the City Council and for public inspection within 180 days of each fiscal year end. VI. Developer Fee Credits (This Section VI applies only to the Downtown Traffic Impact Fee, Eastern Dublin Traffic Impact Fee and the Public Facilities Fee, and the definitions contained in the Resolutions establishing and amending said Fees shall apply. Unless otherwise indicated, all references to the "Fee" or "Fees" in this section shall mean only the Downtown Traffic Impact Fee, Eastern Dublin Traffic Impact Fee and the Public Facilities Fee.) A. General. This section VI establishes the authority for providing credits and/or reimbursement to developers who construct and/or dedicate any of the improvements and facilities for which the Fees are imposed (Fee 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 these guidelines. If the amount of the credit is greater than the Fees due for the development project the developer may, subject to the restrictions described herein, use the credit toward the Fees for another development project or transfer the credit to another eligible developer in accordance with these guidelines. If the developer cannot use or transfer the credit within ten years, then the credit will convert to a reimbursement right unless the developer first extends the credits as provided for in Section VLE of these Guidelines. 4 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 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. 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 be entered into between the City and the Alameda County Surplus Property Authority. C. 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 Fee facilities or dedication of land. 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. 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. 5 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 4. Any credits, which are unused ten years following their creation and which have not been extended pursuant to Section VLE of these Guidelines, 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 either be increased for inflation or accrue interest. 6. Credits are transferable, with the written approval of the City Manager, provided that the administrative transfer fee is paid, as specified in 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. 8. With respect to the Eastern Dublin Traffic Impact Fee and the Public Facilities Fee, credits earned by constructing or dedicating a certain category of Fee Facilities can only be used to offset fees for that same category. The Fee for other categories will be paid by the developer as specified in these guidelines. Fee credits will not be mixed between the fee categories. For example, with respect to the Eastern Dublin Traffic Impact Fee, unused credits from Section I (Eastern Dublin Traffic Improvements) cannot be used to offset the Section II component of the Eastern Dublin Traffic Impact Fee. Likewise, with respect to the Public Facilities Fee, unused credits from the Community Parks, Land component of the Fee cannot be used to offset the Libraries component of the Fee. Public Facilities Fee 9. With respect to the Eastern Dublin Traffic Impact Fee, no fee credits shall be established for the "Section II Residential BART Garage" component of the Fee. Payments from those monies shall be made in accordance with subsection VLK, below. D. Calculating the Fee Credits 6 EXHIBIT A Consolidated Impact Fee Administrative Guidelines For purposes of calculating the Eastern Dublin Traffic Impact Fee, the fee credits will be segregated into the following categories: Section L Eastern Dublin Traffic Improvements Section 11 (Excludes Section II Residential BART Garage): Citywide Traffic Improvements Section III: Regional Transportation (Note: Section III Fee suspended effective September 12, 1998, as long as Tri- Valley Transportation Development Fee remains in place.) For purposes of calculating the Public Facilities Fee, the fee credits will be segregated into the following ten categories: • Citywide: Community Parks, Land • Citywide: Community Parks, Improvements • Citywide: Community Buildings • Citywide: Libraries • Citywide: Civic Center • Eastern Dublin: Neighborhood Parks, Land • Eastern Dublin: Neighborhood Parks, Improvements • Eastern Dublin: Aquatic Center • Western Dublin: Neighborhood Parks, Land • Western Dublin: Neighborhood Parks, Improvements 1. General The fee credit/reimbursement agreement will identify the total credit for Fee facilities constructed or land dedicated for a particular development project. The contributed land or improvements must be the facilities described in the applicable Fee Resolutions and/or any 7 EXHIBIT A Consolidated Impact Fee Administrative Guidelines subsequent replacement resolutions. 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. 2. 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 Fee facilities to be constructed or dedicated. It is recognized that, in some cases, the scope of construction or dedication will not exactly match the Fee facilities shown in the exhibits to the Fee Resolution. The credits will be the lesser of the following: a) the estimated cost of the improvements as noted in the Resolution and/or any subsequent replacement resolution; or b) the pro-rated value of the improvement using the standard cost measurements in the Resolution and/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 (Downtown Dublin Traffic Impact Fee): Assume that a developer dedicates land for the partial widening of a major street to offset the 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 Fee. The Resolution used a standard cost measurement of $33 per square foot for right-of-way dedication in calculating the TIF. The Fee credits due to the developer can be calculated by determining the square footage of the land to be dedicated multiplied by the proper square foot cost measurement after automatic annual adjustments based on the change in land acquisition costs. 8 EXHIBIT A Consolidated Impact Fee Administrative Guidelines Illustrative Example 2 (Downtown Dublin Traffic Impact Fee): A Developer constructing multi-family homes contributes traffic signal improvements (TIF improvement) valued at $200,000. Assume that the Fee totals $2,320 per dwelling unit. The credit of $200,000 will cover approximately 86.21 dwelling units. When the building permit is issued for the 87�h dwelling unit, the developer will have used up the credit and will have to begin paying the Fee. Illustrative Example 3 (Eastern Dublin Traffic Impact Fee): 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 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 4 (Eastern Dublin Traffic Impact Fee): A developer constructing single family homes contributes traffic signal improvements (Section I improvement) valued at $200,000. Assume that the Traffic Impact Fee totals $6,950 per home, which is comprised of the Section I portion of$4,700 and the Section II and III portions of$2,250. The credit of$200,000 can only be used against the developer's Section I Fee of$4,700 per home, which will cover approximately 42.55 homes. When the building permit is issued for the 43rd home, the developer will have used up the credit and will have to begin paying the Section I Fee. The Section II and III portions of the Fee must be paid at the issuance of each building permit for all homes included in the development, as the Section I credit cannot be used to offset these portions of the Fee. 9 EXHIBIT A Consolidated Impact Fee Administrative Guidelines Illustrative Example 5 (Public Facilities Fee): Assume that a developer contributes 10 acres of land for a planned 20 acre community park to offset the Fees due for the Community Parks, Land fee component. The last adopted fee study used a standard cost estimate of$420,000 per acre for calculating the cost of improved community parkland. The fee credit due to the developer will be calculated using this cost estimate (10 acres $420,000 per acre= $4,200,000). Illustrative Example 6 (Public Facilities Fee): A developer constructing single family homes in Eastern Dublin contributes neighborhood park improvements valued at $200,000. The Neighborhood Parks, Improvements portion of the Fee for a single family home is currently $925 of the total Fee of $11,219. The developer must pay a Fee of $10,294 for each single-family home (total Fee of$11,219 less credit of$925) until the $200,000 credit is used up. This credit will cover the Neighborhood Parks, Improvements component of the Fee for the first 216 single-family homes constructed ($200,000/$925=216.22). When the developer applies for the building permit for the 217th home, he or she will begin paying this component of the Fee with the balance of the Public Facilities Fee due for the project. E. Use of Fee Credits 1. Credits expire when used or 10 years from the date of the credit/reimbursement agreement .,e rr at ,t„ r�� a t f , t,e4def) ss-eciscrcC�irc°t"�i�'eriia -r'a`v'-��cwx-,�-cs�i�ca�ae`` ."n:-�-x�'Caa�-xrv�c��W 1C ever OCCUTS first. The life of credits may be extended byears at the request of the credit holder (for a total life of 15 w ears and i�1 addition a credit bolder that has been granted a 5-year extension may request one additional 1-year extension (for a total life of 16 years). The additional extension is at the discretion of the City Managcr. 2. In the event the fee credits are unused I'elkrx ng--44—yeaf; ft-o t he--date—ef-44ic- ef 1it/re nb °s tont-ag e ( fifteen- ,s if4x4e� a ,� at ��„� r e—A- h�� e � �7,�,�at cxnacca-caCCx�ca ca .n.—�-x�"cea� rrv�ec� at 10 EXHIBIT A Consolidated Impact Fee Administrative Guidelines expiration, the fee credit shall convert to a reimbursement right as provided for under these guidelines. 3. The value of the credits will be listed in the agreement and tracked as they are used by the developer. The City's Administrative Services Department will keep record of the unused credits and provide this information to the Building & Safety Division at the time Fee credits are used. 4. Only the developer who builds or dedicates the Fee facilities will be entitled to the original or initial credits, until such time as they may be transferred in accordance with these guidelines. F. 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 2. Provided the City with a performance bond and a labor and materials bond or other adequate security to insure that the improvements will be constructed prior to the first Certificate of Occupancy for any building that is 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 written by a surety licensed to conduct business in the State of California and approved by the City Manager. Illustrative Example: Assume a developer is in the midst of completing certain improvements, which will be dedicated to the City to offset a portion of the 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. 11 EXHIBIT A Consolidated Impact Fee Administrative Guidelines G. Transferring of Credits 1. 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 the Fee in question. 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. 2. There is no limit on the number of times that credits can be transferred between developments. 3. In certain circumstances, and as required in the interest of equity, the City Manager may, at his or her sole discretion, authorize the transfer of credits to a person who does not own an interest in property subject to the Fee. H. Reimbursement Rights (Excluding EDTIF Section II Residential BART Garage Fees) 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: 1. Reimbursement will be only from funds that were collected in payment of the same Fee as the one for which a developer is seeking reimbursement or, in the case of the Eastern Dublin Traffic Impact Fee, 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. 2. The City will determine the amount of funds available for reimbursement on an annual basis. L Process for Reimbursement of Reimbursement Rights 1. Determination of Funds Available for Reimbursement 12 EXHIBIT A Consolidated Impact Fee Administrative Guidelines Within 180 days of the end of each fiscal year, the Administrative Services Department will make an accounting of all Fees collected for the fiscal year that just ended. The Administrative Services Department will also determine, for each of the Fees, the amount of Fee funds that are unspent and unencumbered as of the close of the fiscal year. For funds that are unspent and unencumbered, the City will allocate the necessary amount to be used to finance needed Fee facilities for the upcoming fiscal year. 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. 2. Allocating the Reimbursement Set-Aside to Outstanding Reimbursement Rights In the event that the City designates that a reimbursement set-aside is available, 50% 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 according to their amounts outstanding, including the remaining un-reimbursed portion of the oldest agreement. Unused reimbursement set-aside funds will not be carried over to another fiscal year. The following example illustrates this allocation: Illustrative Example: During one fiscal year, the City collects $88,000 in Fees for DTIF improvements. The total outstanding reimbursements owed for the DTIF are $100,000 to the following developers: Developer A (the oldest agreement): $50,000 Developer B: $20,000 Developer C: $30,000 13 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 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 follows: Holder of Current Value of Percent of Total Amt.of$22,000 Reimbursement Reimbursement Reimbursement Reimbursements Reimbursement Balance Owed Outstanding Distributed Remaining Developer A $28,000 35.90% $7,898.00 $20,102.00 Developer B $20,000 25.64% $5,640.80 $14,359.20 Developer C $30,000 38.46% $8,461.20 $21,538.80 TOTAL $78,000 $22,000.00 $56,000.00 J. Procedures for Construction of Designated Facilities by Developers 1. With respect to the Downtown Dublin Traffic Impact Fee and the Eastern Dublin Traffic Impact Fee, the improvements to be constructed or dedicated must be submitted for approval in writing to the Public Works Director no later than 30 calendar days prior to the approval of the Final Map on the development project. The submittal of the improvement plans and/or description of area to be dedicated shall be in sufficient detail, as determined by the Public Works Director, for the Public Works Director to make a determination regarding the approval. The developer constructing or dedicating improvements in lieu of paying a portion of the Fee must post a performance bond before the issuance of any grading and/or building permits for the construction of the improvements. 2. With respect to the Public Facilities Fee (PFF), as a matter of policy the City will design and construct community parks, community buildings, libraries, Civic Center improvements and the Eastern Dublin Aquatic Center. Developers may, with City approval, be permitted to design and construct neighborhood parks/squares and certain portions of community parks. The design and 14 EXHIBIT A Consolidated Impact Fee Administrative Guidelines construction materials/methods must be in accordance with standard City specifications, and City inspectors shall be responsible for construction inspection throughout the duration of the construction period. The PFF Facilities to be constructed or dedicated by the developer must be submitted for approval in writing to the Parks and Community Services Director no later than thirty calendar days prior to the approval of the Final Map on the development project. The submittal of the improvement plans and/or description of area to be dedicated shall be in sufficient detail, as determined by the Parks and Community Services Director, for the Parks and Community Services Director will attempt to make a determination regarding the approval. The developer constructing or dedicating PFF Facilities in lieu of paying a portion of the Fee must post a performance bond and a labor and materials bond before the issuance of any grading and/or building permits for the construction of the PFF Facilities. K. Guidelines for Issuing Trip Credits to Miscellaneous Infill Development-Downtown Dublin Traffic Impact Fee Only 1. Trip credits shall follow the land use and not the user. For example, assume User X relocates from Space A to Space B, both of which are located within the Downtown TIF area. User X shall not receive trip credit for vacating Space A. User X shall be charged the appropriate TIF amount for moving into Space B, subject to receiving trip credit as specified below. Similarly, the appropriate TIF amount shall be charged to the next user of Space A, subject to the appropriate trip credit. 2. Trip credit associated with unoccupied space shall be issued if, and only if, the space has been vacant for five (5) calendar years or less prior to the date when a use permit is issued to the new user. 3. TIF calculations/trip credit for uses, other than Urgent Care Medical Office, located within a general office building that houses multiple tenants (such as professional services, insurance companies, investment brokers, bank or savings and loan institutions, medical offices, restaurant or cafeteria, retail facilities, etc.) shall be based upon a uniform trip generation rate for Standard 15 EXHIBIT A Consolidated Impact Fee Administrative Guidelines Commercial Office as specified in Exhibit D to the Resolution. For Urgent Care Medical Office use within a general office building, the trip generation rate for Clinic, as specified in Exhibit D to the Resolution, shall be used to calculate the TIF and the trip credit. 4. Trip credit for uses located within a shopping center containing retail stores, as well as non- merchandising facilities (such as office buildings, movie theaters, restaurants, post offices, banks, health clubs, recreational facilities, etc.) shall be based upon a uniform trip generation rate for the appropriate type of Shopping Center as specified in Exhibit D to the Resolution. 5. Trip credit shall be determined by the City based upon the adopted weekday trip generation rates as specified in Exhibit D to the Resolution. Examples of how trip credits can be applied to miscellaneous infill development projects within the Downtown TIF area are presented below. Illustrative Example 1: User X moves his/her fast food restaurant business into an individual (standalone) building located within the Downtown TIF area. Previous use of the building consisted of a sit-down restaurant, which was vacated approximately two years prior to User X obtaining his/her use permit. Would User X be entitled to trip credit? Answer: Yes, he/she would be entitled to trip credit for the previous sit-down restaurant use which generates fewer daily trips than a fast food restaurant. User X would pay TIF based on the net daily trips estimated for his/her project. Note: If the subject building was vacated more than five years prior to the date when the use permit was issued to User X, User X would then not receive any trip credit. Illustrative Example 2: User X (insurance company office) and User Y (dental office) occupy office space in two separate general office buildings (building A and building B, 16 EXHIBIT A Consolidated Impact Fee Administrative Guidelines respectively). Both buildings are located within the Downtown TIF area. The two users have decided to switch office spaces (e.g., User X would relocate to the space in building B and User Y would relocate to the space in building A). Would either user be required to pay TIF? Answer: No, because as each user moves into the other space, he/she would receive full trip credit for the previous use, based on the uniform trip generation rate for Standard Commercial Office as specified in Exhibit D to the Resolution. Note: Although User Y operates a dental office, which generates more daily trips than an insurance company office (User X), the same trip generation rate (i.e., Standard Commercial Office) is used in both cases to calculate the TIF, as both uses are proposed to take place within a general office building. Illustrative Example 3: User X proposes to change the use of his/her individual (standalone) space within the Downtown TIF area from Health Club to Bowling CenterNideo Arcade. How would the TIF be determined? Answer: The TIF would be determined based on the net daily trips estimated for the proposed project. For example, User X would be charged TIF based on the proposed Bowling CenterNideo Arcade use, but would receive trip credit for the discontinued Health Club use. Illustrative Example 4: User X proposes to establish an Urgent Care Medical Office within a general office building by replacing existing retail/restaurant uses located on the first floor of the building. How would the trip credit be determined? Answer: The trip credit would be determined based on the trip generation rate for Standard Commercial Office. Note: The TIF would be based upon the net increase in 17 EXHIBIT A Consolidated Impact Fee Administrative Guidelines daily trips due to the proposed project (e.g., the difference between Clinic trips and Standard Commercial Office trips). L. Eastern Dublin Traffic Impact Fee-Section II Residential BART Garage 1. Payment to Alameda County Surplus Property Authority (ACSPA) for $6 million of BART Garage Costs (Section II Residential BART Garage) With respect to the Eastern Dublin Traffic Impact Fee, payment of Section II Residential BART Garage Fees, payment shall be made to the Alameda County Surplus Property Authority (ACSPA), which is responsible for the parking garage construction and dedication of the improvement to the Bay Area Rapid Transit (BART) District for public. 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 million dollars). Payment to Alameda County Surplus Property Authority is subject to the following specific guidelines: a. The maximum to be disbursed from fees collected shall be six million dollars ($6,000,000), which amount shall not be increased for any reason including inflation. In addition, any 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 any other source including the City's General Fund. C. The amount disbursed will depend on the payment 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 any. e. The procedure for distributing the disbursements to ACSPA is described below. 18 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 2. 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 by BART and made available for public use, the ACSPA shall provide to the City a written certification of the completion of the BART Garage. ii. Within 45 days of receipt of the certification described above, City 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 quarterly balance of Section II BART Garage Fees and the earning rate applied to pooled funds managed by 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 below. b. Annual Determination of Section II Residential BART Garage Fee Funds Available for Payment i. Within 180 days 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 previously 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 available, to the extent that the total distribution including previous payments, excluding any amounts paid as interest, does not exceed the maximum amount described above. 19 EXHIBIT A Consolidated Impact Fee Administrative Guidelines iii. The Administrative Services Department shall annually report to the ACSPA the current balance remaining Section II Residential BART Garage fees that may be paid. 20 or �9` - 82 STAFF REPORT CITY CLERK ` CITY COUNCIL File #600-70 DATE: July 16, 2013 TO: Honorable Mayor and City Councilmembers FROM: � Joni Pattillo City Manager""'` SUBJECT: Adoption of Impact Fee Guidelines for the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee, Public Facilities Fee, Fire Facilities Fee and Noise Fee Prepared by Stephen Muzio, Assistant City Attorney EXECUTIVE SUMMARY: City staff currently utilizes administrative guidelines relating to the administration of the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee and the Public Facilities Fee. The Fire Facilities Fee and Noise Fee have no such guidelines. The existing guidelines for the various fees contain varying provisions which, in some cases, makes administration of the fee collection process more complicated than is necessary. This item seeks City Council approval of two resolutions that would harmonize the administrative guidelines and fee exemption procedures for the for the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee, Public Facilities Fee, Fire Facilities Fee and Noise Fee. FINANCIAL IMPACT: None. RECOMMENDATION: Staff recommends that the City Council adopt- 1) a Resolution Establishing Administrative Guidelines for the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee, Public Facilities Fee, Fire Facilities Fee and Noise Fee, and 2) a Resolution Establishing a Single Policy for Exemptions For the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee, Public Facilities Fee, Fire Facilities Fee and Noise Fee. ell Submitted By Reviewed By City Attorney Assistant City Manager DESCRIPTION: The City Council has previously adopted guidelines that govern the administration of the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee and Public Facilities Fee. These guidelines address various issues including calculation of fee amounts, collection of Page 1 of 2 ITEM NO. 4.10 fees, and the administration of fee credits. The Fire Facilities Fee and the Noise Fee have no such administrative guidelines. The guidelines are useful in the administration of the impact fee programs, but the various versions of the guidelines contain inconsistent provisions, which sometimes results in additional work for staff in assessing how to handle various development projects. The guidelines also contain certain provisions that are redundant to the resolutions establishing the fees. The City Attorney's Office has reviewed the existing guidelines and drafted a single set of guidelines that would be applicable to the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee, and Public Facilities Fee, and, for the first time, to the Fire Facilities Fee and Noise Fee. It is hoped that this harmonization of the administration of the impact fee programs will help streamline the administration of the imposition and collection of these impact fees. The proposed guidelines do contain separate provisions relating to the handling of credits for the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee and the Public Facilities Fee. Due to the specifics in those fee programs, the proposed guidelines on fee credits would treat these three fees separately and would not be applicable to the Fire Facilities Fee or Noise Fee. In addition, the City Attorney's Office has prepared a separate Resolution establishing a single set of exemptions to the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee, Public Facilities Fee, Fire Facilities Fee and Noise Fee. Because each of the fee resolutions contains separate, sometimes inconsistent exemption provisions, staff and the City Attorney's Office concluded that it would be more efficient to amend the fee resolutions to establish a single, standardized set of exemptions. The standardization avoids circumstances in which the same project might be exempt from one fee but not another, for example. Two policy changes or clarifications were implemented. The proposed resolution would exempt replacement and reconstruction of single family dwellings. Currently, the exemption requires the replacement and reconstruction to occur with 12 months of destruction or demolition. The reasoning for this change is that, in some cases, it may be not feasible to commence the replacement or reconstruction within 12 months. The policy change also implicitly acknowledges the fact that such replacement and reconstruction do not increase the impacts on public facilities. Second, in some cases the exemptions in the resolutions indicated that the exemptions would not apply if replacement and reconstruction increased the number of units (in the case of residential) or impacts (in the case of non-residential). The proposed resolution makes clear that the exemption applies to the existing units and impacts but not to the increased units and impacts. Thus, if a 50 unit apartment project is replaced with a 60-unit apartment project that otherwise meets the requirements for an exemption, 50 units of the 60 unit project are exempt, and the project pays fees equal to 10 units. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None required. ATTACHMENTS: 1. Resolution Establishing Administrative Guidelines for the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee, Public Facilities Fee, Fire Facilities Fee and Noise Fee 2. Resolution Establishing a Single Policy for Exemptions for the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee, Public Facilities Fee, Fire Facilities Fee and Noise Fee Page 2 of 2 RESOLUTION NO. XX - 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * ESTABLISHING ADMINISTRATIVE GUIDELINES FOR THE EASTERN DUBLIN TRAFFIC IMPACT FEE, DOWNTOWN DUBLIN TRAFFIC IMPACT FEE, PUBLIC FACILITIES FEE, FIRE FACILITIES FEE AND NOISE FEE WHEREAS, the City Council previously adopted Resolution 210-04 establishing the Downtown Traffic Impact Fee; and WHEREAS, the City Council previously adopted Resolution 1-95 establishing the Eastern Dublin Traffic Impact Fee; and WHEREAS, the City Council previously adopted Resolution 32-96 establishing the Public Facilities Fee; and WHEREAS, the City Council adopted Resolution 37-97 establishing the Fire Facilities Fee; and WHEREAS, the City Council adopted Resolution 33-96 establishing the Noise Fee; and WHEREAS, the above named fees shall hereinafter be referred to as the "Fees"; and WHEREAS, in the interest of achieving a greater degree of uniformity across the Fees, the City Council desires to adopt a common set of guidelines for the Fees. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt the Consolidated Impact Fee Guidelines attached hereto as Exhibit A, which Guidelines shall supersede the Guidelines previously adopted for the Eastern Dublin Traffic Impact Fee, Downtown Dublin Traffic Impact Fee and Public Facilities Fee. PASSED, APPROVED AND ADOPTED this 16th day of July, 2013, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk EXHIBIT A Consolidated Impact Fee Administrative Guidelines CITY OF DUBLIN CONSOLIDATED IMPACT FEE ADMINISTRATIVE GUIDELINES L Introduction/Overview These guidelines apply to the Downtown Traffic Impact Fees (adopted by the City Council of the City of Dublin through Resolution 210-04 and as subsequently amended), the Eastern Dublin Traffic Impact Fees (adopted by the City Council of the City of Dublin through Resolution 1-95 and as subsequently amended), the Public Facilities Fees (adopted by the City Council of the City of Dublin through Resolution 32-96 and as subsequently amended), the Fire Facilities Fees (adopted by the City Council of the City of Dublin through Resolution 37-97 and as subsequently amended) and the Noise Fee (adopted by the City Council of the City of Dublin through Resolution 33-96), which fees are, unless otherwise provided, hereinafter referred to as the "Fee" or "Fees." Except as otherwise provided herein, terms used in these guidelines shall be defined in the same manner as such terms are defined in the Resolution. 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 Specific Plans, and the most recent Impact Fee Studies. Such reference documents are subject to change and may affect the application of these guidelines. II. Authority of City Manager to Interpret Situations Not Covered Should situations arise not covered by these guidelines, the City Manager will have the authority to determine how the resolutions, ordinances, guidelines and agreements will be administered. Such interpretations by the City Manager will be in writing. III. Fee Administration A. Responsible Departments 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 Department is responsible for determining the 1 EXHIBIT A Consolidated Impact Fee Administrative Guidelines number of vehicle trips assigned to the project. Unless otherwise provided in the applicable Fee Resolution, the Fee will be collected with the payment for the building permit for the development project. 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 projects will be calculated as provided for in the Fee Resolutions. However, in certain circumstances, the applicable resolutions may not appropriately reflect or apply to a particular project. For example, mixed use projects and projects that involve land uses that are not included in the Resolution. For non-residential development projects in which the land use is not included in the definitions contained in the applicable Fee resolution, the Community Development Director will determine which of the defined categories is appropriate, maintaining as much consistency as possible with the definition of such terms. For mixed-use development projects, the Community Development Director will determine the projected percentage of each of the uses at the time the Final Map or other appropriate entitlement is approved. The Fee will be calculated on a pro-rata basis for each different use. 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. Any additional Fee owed as a result of a different final use of the property will be calculated and collected at the time that a building permit is issued for interior tenant improvements. This fee calculation shall be at the rate in effect at the time of final inspection. No refund of the Fee will be given if the resulting uses are different from the projected land use. 2 EXHIBIT A Consolidated Impact Fee Administrative Guidelines For mixed-use projects that contain both residential and non-residential portions, the Fee will be based upon the residential per dwelling unit fee schedule for the residential portion and the non-residential per square foot schedule for the non-residential portion. The non-residential portion will be allocated among the uses as described above in these guidelines. Quasi-public uses (churches, non-profit organizations, etc.) will be subject to the Fees. For these uses, the Community Development Director will determine which of the categories most appropriately reflects the land use and allocate the project to this category. Affordable housing projects developed by government agencies and non-profit entities will be subject to the same Fees that are assessed on private residential development. 1. Where the Fee in question is calculated based on trips generated, including but not limited to quasi-public uses, the Public Works Director 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. IV. Payment Records The Administrative Services Department will record the payment of the 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 payor, as well as the applicable Assessor's Parcel Number, and will note the payor as the entity or person whose name appears as the applicant for the building permit. The Finance Division of the Administrative Services Department will maintain the records for a period of ten years from their collection, unless a legal mandate exists for a longer retention. V. Other Miscellaneous Administrative Guidelines A. Refunds Refunds of Fees associated with withdrawn applications or projects on which construction has not commenced, will be done in accordance with existing procedures for refunds of paid building permits. 3 EXHIBIT A Consolidated Impact Fee Administrative Guidelines • Payable to entity making payment or property owner of record. • Payable in accordance with State Law. • Not applicable to letters of credit, bonds or other instruments taken to secure payment. If, pursuant to said procedures for paid building permits, a refund is no longer available, and if, within 10 years of the original payment of the Fees, new building permits are issued for a project on the subject property, the developer of the new project shall be required to pay only the difference between the amount of the Fees that were originally paid, and the amount of the Fees in effect at the time of issuance of building permits for the new project. This calculation of the difference in Fee amounts shall be done on a Fee by Fee basis. Thus, if any one Fee is reduced or eliminated between the time of the original payment and the issuance of building permits for the new project, the original payment amount for that reduced or eliminated Fee shall not be included in the calculation of the amount owed for the other Fees. B. 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 Fee; • An identification of the improvements and the percentage of cost of the improvements which the 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. C. 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 Fees. 4 EXHIBIT A Consolidated Impact Fee Administrative Guidelines • 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 Fee as of fiscal year end. • The City will identify the amount of Fees collected and interest earned in each fiscal year for Fees. • The City will provide a description and accounting of any interfund transfers made by the Fee Fund. • The City will calculate reimbursements annually within 180 days of each fiscal year end. • The City will file an annual accounting of all development impact fees with the City Council and for public inspection within 180 days of each fiscal year end. VI. Developer Fee Credits (This Section VI applies only to the Downtown Traffic Impact Fee, Eastern Dublin Traffic Impact Fee and the Public Facilities Fee, and the definitions contained in the Resolutions establishing and amending said Fees shall apply. Unless otherwise indicated, all references to the "Fee" or "Fees" in this section shall mean only the Downtown Traffic Impact Fee, Eastern Dublin Traffic Impact Fee and the Public Facilities Fee.) A. General. This section VI establishes the authority for providing credits and/or reimbursement to developers who construct and/or dedicate any of the improvements and facilities for which the Fees are imposed (Fee 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 these guidelines. If the amount of the credit is greater than the Fees due for the development project the developer may, subject to the restrictions described herein, use the credit toward the Fees for another development project or transfer the credit to another eligible developer in accordance with these guidelines. If the developer cannot use or transfer the credit within ten years, then the credit will convert to a reimbursement right unless the developer first extends the credits as provided for in Section VLE of these Guidelines. 5 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 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. 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 be entered into between the City and the Alameda County Surplus Property Authority. C. 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 Fee facilities or dedication of land. 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. 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. 6 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 4. Any credits, which are unused ten years following their creation and which have not been extended pursuant to Section VLE of these Guidelines, 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 either be increased for inflation or accrue interest. 6. Credits are transferable, with the written approval of the City Manager, provided that the administrative transfer fee is paid, as specified in 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. 8. With respect to the Eastern Dublin Traffic Impact Fee and the Public Facilities Fee, credits earned by constructing or dedicating a certain category of Fee Facilities can only be used to offset fees for that same category. The Fee for other categories will be paid by the developer as specified in these guidelines. Fee credits will not be mixed between the fee categories. For example, with respect to the Eastern Dublin Traffic Impact Fee, unused credits from Section I (Eastern Dublin Traffic Improvements) cannot be used to offset the Section II component of the Eastern Dublin Traffic Impact Fee. Likewise, with respect to the Public Facilities Fee, unused credits from the Community Parks, Land component of the Fee cannot be used to offset the Libraries component of the Fee. Public Facilities Fee 9. With respect to the Eastern Dublin Traffic Impact Fee, no fee credits shall be established for the "Section II Residential BART Garage" component of the Fee. Payments from those monies shall be made in accordance with subsection VLK, below. D. Calculating the Fee Credits 7 EXHIBIT A Consolidated Impact Fee Administrative Guidelines For purposes of calculating the Eastern Dublin Traffic Impact Fee, the fee credits will be segregated into the following categories: Section L Eastern Dublin Traffic Improvements Section 11 (Excludes Section II Residential BART Garage): Citywide Traffic Improvements Section III: Regional Transportation (Note: Section III Fee suspended effective September 12, 1998, as long as Tri- Valley Transportation Development Fee remains in place.) For purposes of calculating the Public Facilities Fee, the fee credits will be segregated into the following ten categories: • Citywide: Community Parks, Land • Citywide: Community Parks, Improvements • Citywide: Community Buildings • Citywide: Libraries • Citywide: Civic Center • Eastern Dublin: Neighborhood Parks, Land • Eastern Dublin: Neighborhood Parks, Improvements • Eastern Dublin: Aquatic Center • Western Dublin: Neighborhood Parks, Land • Western Dublin: Neighborhood Parks, Improvements 1. General The fee credit/reimbursement agreement will identify the total credit for Fee facilities constructed or land dedicated for a particular development project. The contributed land or improvements must be the facilities described in the applicable Fee Resolutions and/or any 8 EXHIBIT A Consolidated Impact Fee Administrative Guidelines subsequent replacement resolutions. 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. 2. 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 Fee facilities to be constructed or dedicated. It is recognized that, in some cases, the scope of construction or dedication will not exactly match the Fee facilities shown in the exhibits to the Fee Resolution. The credits will be the lesser of the following: a) the estimated cost of the improvements as noted in the Resolution and/or any subsequent replacement resolution; or b) the pro-rated value of the improvement using the standard cost measurements in the Resolution and/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 (Downtown Dublin Traffic Impact Fee): Assume that a developer dedicates land for the partial widening of a major street to offset the 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 Fee. The Resolution used a standard cost measurement of $33 per square foot for right-of-way dedication in calculating the TIF. The Fee credits due to the developer can be calculated by determining the square footage of the land to be dedicated multiplied by the proper square foot cost measurement after automatic annual adjustments based on the change in land acquisition costs. 9 EXHIBIT A Consolidated Impact Fee Administrative Guidelines Illustrative Example 2 (Downtown Dublin Traffic Impact Fee): A Developer constructing multi-family homes contributes traffic signal improvements (TIF improvement) valued at $200,000. Assume that the Fee totals $2,320 per dwelling unit. The credit of $200,000 will cover approximately 86.21 dwelling units. When the building permit is issued for the 87�h dwelling unit, the developer will have used up the credit and will have to begin paying the Fee. Illustrative Example 3 (Eastern Dublin Traffic Impact Fee): 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 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 4 (Eastern Dublin Traffic Impact Fee): A developer constructing single family homes contributes traffic signal improvements (Section I improvement) valued at $200,000. Assume that the Traffic Impact Fee totals $6,950 per home, which is comprised of the Section I portion of$4,700 and the Section II and III portions of$2,250. The credit of$200,000 can only be used against the developer's Section I Fee of$4,700 per home, which will cover approximately 42.55 homes. When the building permit is issued for the 43rd home, the developer will have used up the credit and will have to begin paying the Section I Fee. The Section II and III portions of the Fee must be paid at the issuance of each building permit for all homes included in the development, as the Section I credit cannot be used to offset these portions of the Fee. 10 EXHIBIT A Consolidated Impact Fee Administrative Guidelines Illustrative Example 5 (Public Facilities Fee): Assume that a developer contributes 10 acres of land for a planned 20 acre community park to offset the Fees due for the Community Parks, Land fee component. The last adopted fee study used a standard cost estimate of$420,000 per acre for calculating the cost of improved community parkland. The fee credit due to the developer will be calculated using this cost estimate (10 acres $420,000 per acre= $4,200,000). Illustrative Example 6 (Public Facilities Fee): A developer constructing single family homes in Eastern Dublin contributes neighborhood park improvements valued at $200,000. The Neighborhood Parks, Improvements portion of the Fee for a single family home is currently $925 of the total Fee of $11,219. The developer must pay a Fee of $10,294 for each single-family home (total Fee of$11,219 less credit of$925) until the $200,000 credit is used up. This credit will cover the Neighborhood Parks, Improvements component of the Fee for the first 216 single-family homes constructed ($200,000/$925=216.22). When the developer applies for the building permit for the 217th home, he or she will begin paying this component of the Fee with the balance of the Public Facilities Fee due for the project. E. Use of Fee Credits 1. Credits expire when used or 10 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. 2. In the event the fee credits are unused following 10 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 provided for under these guidelines. 3. The value of the credits will be listed in the agreement and tracked as they are used by the developer. The City's Administrative Services Department will keep record of the unused 11 EXHIBIT A Consolidated Impact Fee Administrative Guidelines credits and provide this information to the Building & Safety Division at the time Fee credits are used. 4. Only the developer who builds or dedicates the Fee facilities will be entitled to the original or initial credits, until such time as they may be transferred in accordance with these guidelines. F. 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 2. Provided the City with a performance bond and a labor and materials bond or other adequate security to insure that the improvements will be constructed prior to the first Certificate of Occupancy for any building that is 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 written by a surety licensed to conduct business in the State of California and approved by the City Manager. Illustrative Example: Assume a developer is in the midst of completing certain improvements, which will be dedicated to the City to offset a portion of the 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. G. Transferring of Credits 1. 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 the Fee in question. Such transactions shall be subject to an administrative transfer fee, which shall cover the City's administrative costs 12 EXHIBIT A Consolidated Impact Fee Administrative Guidelines associated with the credit transfer. The administrative transfer fee shall be established in the City's Master Fee Schedule. 2. There is no limit on the number of times that credits can be transferred between developments. 3. In certain circumstances, and as required in the interest of equity, the City Manager may, at his or her sole discretion, authorize the transfer of credits to a person who does not own an interest in property subject to the Fee. H. Reimbursement Rights (Excluding EDTIF Section II Residential BART Garage Fees) 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: 1. Reimbursement will be only from funds that were collected in payment of the same Fee as the one for which a developer is seeking reimbursement or, in the case of the Eastern Dublin Traffic Impact Fee, 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. 2. The City will determine the amount of funds available for reimbursement on an annual basis. L Process for Reimbursement of Reimbursement Rights 1. 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 Fees collected for the fiscal year that just ended. The Administrative Services Department will also determine, for each of the Fees, the amount of Fee funds that are unspent and unencumbered as of the close of the fiscal year. For funds that are unspent and unencumbered, the City will allocate the necessary amount to be used to finance needed Fee 13 EXHIBIT A Consolidated Impact Fee Administrative Guidelines facilities for the upcoming fiscal year. 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. 2. Allocating the Reimbursement Set-Aside to Outstanding Reimbursement Rights In the event that the City designates that a reimbursement set-aside is available, 50% 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 according to their amounts outstanding, including the remaining un-reimbursed portion of the oldest agreement. Unused reimbursement set-aside funds will not be carried over to another fiscal year. The following example illustrates this allocation: Illustrative Example: During one fiscal year, the City collects $88,000 in Fees for DTIF improvements. The total outstanding reimbursements owed for the DTIF 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 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 14 EXHIBIT A Consolidated Impact Fee Administrative Guidelines payment). The other half of the reimbursement set-aside ($22,000) is allocated proportionally to all three parties who currently hold reimbursement rights as follows: Holder of Current Value of Percent of Total Amt.of$22,000 Reimbursement Reimbursement Reimbursement Reimbursements Reimbursement Balance Owed Outstanding Distributed Remaining Developer A $28,000 35.90% $7,898.00 $20,102.00 Developer B $20,000 25.64% $5,640.80 $14,359.20 Developer C $30,000 38.46% $8,461.20 $21,538.80 TOTAL $78,000 $22,000.00 $56,000.00 J. Procedures for Construction of Designated Facilities by Developers 1. With respect to the Downtown Dublin Traffic Impact Fee and the Eastern Dublin Traffic Impact Fee, the improvements to be constructed or dedicated must be submitted for approval in writing to the Public Works Director no later than 30 calendar days prior to the approval of the Final Map on the development project. The submittal of the improvement plans and/or description of area to be dedicated shall be in sufficient detail, as determined by the Public Works Director, for the Public Works Director to make a determination regarding the approval. The developer constructing or dedicating improvements in lieu of paying a portion of the Fee must post a performance bond before the issuance of any grading and/or building permits for the construction of the improvements. 2. With respect to the Public Facilities Fee (PFF), as a matter of policy the City will design and construct community parks, community buildings, libraries, Civic Center improvements and the Eastern Dublin Aquatic Center. Developers may, with City approval, be permitted to design and construct neighborhood parks/squares and certain portions of community parks. The design and construction materials/methods must be in accordance with standard City specifications, and City inspectors shall be responsible for construction inspection throughout the duration of the construction period. The PFF Facilities to be constructed or dedicated by the developer must be submitted for approval in writing to the Parks and Community Services Director no later than thirty calendar days prior to the approval of the Final Map on the development project. The 15 EXHIBIT A Consolidated Impact Fee Administrative Guidelines submittal of the improvement plans and/or description of area to be dedicated shall be in sufficient detail, as determined by the Parks and Community Services Director, for the Parks and Community Services Director will attempt to make a determination regarding the approval. The developer constructing or dedicating PFF Facilities in lieu of paying a portion of the Fee must post a performance bond and a labor and materials bond before the issuance of any grading and/or building permits for the construction of the PFF Facilities. K. Guidelines for Issuing Trip Credits to Miscellaneous Infill Development-Downtown Dublin Traffic Impact Fee Only 1. Trip credits shall follow the land use and not the user. For example, assume User X relocates from Space A to Space B, both of which are located within the Downtown TIF area. User X shall not receive trip credit for vacating Space A. User X shall be charged the appropriate TIF amount for moving into Space B, subject to receiving trip credit as specified below. Similarly, the appropriate TIF amount shall be charged to the next user of Space A, subject to the appropriate trip credit. 2. Trip credit associated with unoccupied space shall be issued if, and only if, the space has been vacant for five (5) calendar years or less prior to the date when a use permit is issued to the new user. 3. TIF calculations/trip credit for uses, other than Urgent Care Medical Office, located within a general office building that houses multiple tenants (such as professional services, insurance companies, investment brokers, bank or savings and loan institutions, medical offices, restaurant or cafeteria, retail facilities, etc.) shall be based upon a uniform trip generation rate for Standard Commercial Office as specified in Exhibit D to the Resolution. For Urgent Care Medical Office use within a general office building, the trip generation rate for Clinic, as specified in Exhibit D to the Resolution, shall be used to calculate the TIF and the trip credit. 16 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 4. Trip credit for uses located within a shopping center containing retail stores, as well as non- merchandising facilities (such as office buildings, movie theaters, restaurants, post offices, banks, health clubs, recreational facilities, etc.) shall be based upon a uniform trip generation rate for the appropriate type of Shopping Center as specified in Exhibit D to the Resolution. 5. Trip credit shall be determined by the City based upon the adopted weekday trip generation rates as specified in Exhibit D to the Resolution. Examples of how trip credits can be applied to miscellaneous infill development projects within the Downtown TIF area are presented below. Illustrative Example 1: User X moves his/her fast food restaurant business into an individual (standalone) building located within the Downtown TIF area. Previous use of the building consisted of a sit-down restaurant, which was vacated approximately two years prior to User X obtaining his/her use permit. Would User X be entitled to trip credit? Answer: Yes, he/she would be entitled to trip credit for the previous sit-down restaurant use which generates fewer daily trips than a fast food restaurant. User X would pay TIF based on the net daily trips estimated for his/her project. Note: If the subject building was vacated more than five years prior to the date when the use permit was issued to User X, User X would then not receive any trip credit. 17 EXHIBIT A Consolidated Impact Fee Administrative Guidelines Illustrative Example 2: User X (insurance company office) and User Y (dental office) occupy office space in two separate general office buildings (building A and building B, respectively). Both buildings are located within the Downtown TIF area. The two users have decided to switch office spaces (e.g., User X would relocate to the space in building B and User Y would relocate to the space in building A). Would either user be required to pay TIF? Answer: No, because as each user moves into the other space, he/she would receive full trip credit for the previous use, based on the uniform trip generation rate for Standard Commercial Office as specified in Exhibit D to the Resolution. Note: Although User Y operates a dental office, which generates more daily trips than an insurance company office (User X), the same trip generation rate (i.e., Standard Commercial Office) is used in both cases to calculate the TIF, as both uses are proposed to take place within a general office building. Illustrative Example 3: User X proposes to change the use of his/her individual (standalone) space within the Downtown TIF area from Health Club to Bowling CenterNideo Arcade. How would the TIF be determined? Answer: The TIF would be determined based on the net daily trips estimated for the proposed project. For example, User X would be charged TIF based on the proposed Bowling CenterNideo Arcade use, but would receive trip credit for the discontinued Health Club use. Illustrative Example 4: User X proposes to establish an Urgent Care Medical Office within a general office building by replacing existing retail/restaurant uses located on the first floor of the building. How would the trip credit be determined? 18 EXHIBIT A Consolidated Impact Fee Administrative Guidelines Answer: The trip credit would be determined based on the trip generation rate for Standard Commercial Office. Note: The TIF would be based upon the net increase in daily trips due to the proposed project (e.g., the difference between Clinic trips and Standard Commercial Office trips). L. Eastern Dublin Traffic Impact Fee-Section II Residential BART Garage 1. Payment to Alameda County Surplus Property Authority (ACSPA) for $6 million of BART Garage Costs (Section II Residential BART Garage) With respect to the Eastern Dublin Traffic Impact Fee, payment of Section II Residential BART Garage Fees, payment shall be made to the Alameda County Surplus Property Authority (ACSPA), which is responsible for the parking garage construction and dedication of the improvement to the Bay Area Rapid Transit (BART) District for public. 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 million dollars). Payment to Alameda County Surplus Property Authority is subject to the following specific guidelines: a. The maximum to be disbursed from fees collected shall be six million dollars ($6,000,000), which amount shall not be increased for any reason including inflation. In addition, any 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 any other source including the City's General Fund. C. The amount disbursed will depend on the payment 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 any. 19 EXHIBIT A Consolidated Impact Fee Administrative Guidelines e. The procedure for distributing the disbursements to ACSPA is described below. 2. 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 by BART and made available for public use, the ACSPA shall provide to the City a written certification of the completion of the BART Garage. ii. Within 45 days of receipt of the certification described above, City 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 quarterly balance of Section II BART Garage Fees and the earning rate applied to pooled funds managed by 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 below. b. Annual Determination of Section II Residential BART Garage Fee Funds Available for Payment i. Within 180 days 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 previously 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 available, to the extent that the total distribution including previous payments, 20 EXHIBIT A Consolidated Impact Fee Administrative Guidelines excluding any amounts paid as interest, does not exceed the maximum amount described above. iii. The Administrative Services Department shall annually report to the ACSPA the current balance remaining Section II Residential BART Garage fees that may be paid. 21 RESOLUTION NO. XX - 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * ESTABLISHING A SINGLE POLICY FOR EXEMPTIONS FOR THE EASTERN DUBLIN TRAFFIC IMPACT FEE, DOWNTOWN DUBLIN TRAFFIC IMPACT FEE, PUBLIC FACILITIES FEE, FIRE FACILITIES FEE AND NOISE FEE WHEREAS, the City Council previously adopted Resolution 210-04 establishing the Downtown Traffic Impact Fee; and WHEREAS, the City Council previously adopted Resolution 1-95 establishing the Eastern Dublin Traffic Impact Fee; and WHEREAS, the City Council previously adopted Resolution 32-96 establishing the Public Facilities Fee; and WHEREAS, the City Council adopted Resolution 37-97 establishing the Fire Facilities Fee; and WHEREAS, the City Council adopted Resolution 33-96 establishing the Noise Fee; and WHEREAS, the resolutions above, and their successors, are referred to in this resolution as the Fee Resolutions, and the above named fees shall hereinafter be referred to as the "Fees"; and WHEREAS, in the interest of achieving a greater degree of uniformity across the Fees, the City Council desires to adopt a common set of exemptions for the Fees. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin that, notwithstanding anything to the contrary in the provisions of the Fees as adopted and as later amended, the following provisions shall apply in the administration of the Fees: Exemptions 1. Total Exemption. The following types of development will be exempt from the collection of Fees: a) Any alteration or addition to a residential structure, except to the extent that a residential unit (e.g., second dwelling unit) is added to a single-family unit, or another unit is added to an existing multi- family building. 1 b) Any replacement or reconstruction of an existing single-family residential structure that has been destroyed or demolished. This exception shall not apply to the extent that the replacement or reconstruction includes the addition of a residential unit (e.g., second dwelling unit). c) Any replacement or reconstruction of an existing multi-family 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. This exception shall not apply to the extent that the replacement or reconstruction increases the number of residential units on the property. d) 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. This exception shall not apply to the extent that the reconstructed building would increase the destroyed or demolished building's impacts as measured by the provisions for calculating the Fee contained in the Fee Resolution. e) Any addition to an existing non-residential structure that would not increase the building's impacts as measured by the provisions for calculating the Fee contained in the applicable Fee Resolution. f) With respect to the Eastern Dublin Traffic Impact Fee only, retail uses within the Eastern Dublin Transit Center and the Fairway Ranch High-Density Residential Development, as these uses are considered ancillary to the adjoining residential uses and will not generate outside vehicle trips. g) The City Council, in its sole discretion, may waive the applicability of the Fee to certain development constructed or to be constructed by a public entity on land having an appropriate General Plan land use designation upon findings of the City Council that such a waiver is in the interest of the public health, safety, and/or welfare, for reasons specified in the findings. Such reasons may include, but are not limited to, that the Fee, as it would apply to such development by a public entity, will be sufficiently recovered in whole or in part from residential development, the residents of which may constitute the primary users of the public entity development. 2 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 follows: If within 10 years of paying the 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. In the event that the replacement project would result in a lower Fee, the new development shall not accrue any unused credit or reimbursement rights. Any change in use outside of the 10 year period stated shall be obligated to pay the entire Fee except to the extent that another exemption applies. PASSED, APPROVED AND ADOPTED this 16th day of July, 2013, by the following vote- AYES- NOES- ABSENT- ABSTAIN: Mayor ATTEST: City Clerk 3 CITY OF DUBLIN CONSOLIDATED IMPACT FEE ADMINISTRATIVE GUIDELINES L Introduction/Overview These guidelines apply to the Downtown Traffic Impact Fees (adopted by the City Council of the City of Dublin through Resolution 210-04 and as subsequently amended), the Eastern Dublin Traffic Impact Fees (adopted by the City Council of the City of Dublin through Resolution 1-95 and as subsequently amended), the Public Facilities Fees (adopted by the City Council of the City of Dublin through Resolution 32-96 and as subsequently amended), the Fire Facilities Fees (adopted by the City Council of the City of Dublin through Resolution 37-97 and as subsequently amended) and the Noise Fee (adopted by the City Council of the City of Dublin through Resolution 33-96), which fees are, unless otherwise provided, hereinafter referred to as the "Fee" or "Fees." Except as otherwise provided herein, terms used in these guidelines shall be defined in the same manner as such terms are defined in the Resolution. 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 Specific Plans, and the most recent Impact Fee Studies. Such reference documents are subject to change and may affect the application of these guidelines. II. Authority of City Manager to Interpret Situations Not Covered Should situations arise not covered by these guidelines, the City Manager will have the authority to determine how the resolutions, ordinances, guidelines and agreements will be administered. Such interpretations by the City Manager will be in writing. III. Fee Administration A. Responsible Departments 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 Department is responsible for determining the number of vehicle trips assigned to the project. Unless otherwise provided in the applicable Fee Resolution, the Fee will be collected with the payment for the building permit for the development project. EXHIBIT A Consolidated Impact Fee Administrative Guidelines 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 projects will be calculated as provided for in the Fee Resolutions. However, in certain circumstances, the applicable resolutions may not appropriately reflect or apply to a particular project. For example, mixed use projects and projects that involve land uses that are not included in the Resolution. For non-residential development projects in which the land use is not included in the definitions contained in the applicable Fee resolution, the Community Development Director will determine which of the defined categories is appropriate, maintaining as much consistency as possible with the definition of such terms. For mixed-use development projects, the Community Development Director will determine the projected percentage of each of the uses at the time the Final Map or other appropriate entitlement is approved. The Fee will be calculated on a pro-rata basis for each different use. 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. Any additional Fee owed as a result of a different final use of the property will be calculated and collected at the time that a building permit is issued for interior tenant improvements. This fee calculation shall be at the rate in effect at the time of final inspection. No refund of the Fee will be given if the resulting uses are different from the projected land use. For mixed-use projects that contain both residential and non-residential portions, the Fee will be based upon the residential per dwelling unit fee schedule for the residential portion and the non-residential per 1 EXHIBIT A Consolidated Impact Fee Administrative Guidelines square foot schedule for the non-residential portion. The non-residential portion will be allocated among the uses as described above in these guidelines. Quasi-public uses (churches, non-profit organizations, etc.) will be subject to the Fees. For these uses, the Community Development Director will determine which of the categories most appropriately reflects the land use and allocate the project to this category. Affordable housing projects developed by government agencies and non-profit entities will be subject to the same Fees that are assessed on private residential development. 1. Where the Fee in question is calculated based on trips generated, including but not limited to quasi-public uses, the Public Works Director 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. IV. Payment Records The Administrative Services Department will record the payment of the 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 payor, as well as the applicable Assessor's Parcel Number, and will note the payor as the entity or person whose name appears as the applicant for the building permit. The Finance Division of the Administrative Services Department will maintain the records for a period of ten years from their collection, unless a legal mandate exists for a longer retention. V. Other Miscellaneous Administrative Guidelines A. Refunds Refunds of Fees associated with withdrawn applications or projects on which construction has not commenced, will be done in accordance with existing procedures for refunds of paid building permits. • Payable to entity making payment or property owner of record. • Payable in accordance with State Law. 2 EXHIBIT A Consolidated Impact Fee Administrative Guidelines • Not applicable to letters of credit, bonds or other instruments taken to secure payment. If, pursuant to said procedures for paid building permits, a refund is no longer available, and if, within 10 years of the original payment of the Fees, new building permits are issued for a project on the subject property, the developer of the new project shall be required to pay only the difference between the amount of the Fees that were originally paid, and the amount of the Fees in effect at the time of issuance of building permits for the new project. This calculation of the difference in Fee amounts shall be done on a Fee by Fee basis. Thus, if any one Fee is reduced or eliminated between the time of the original payment and the issuance of building permits for the new project, the original payment amount for that reduced or eliminated Fee shall not be included in the calculation of the amount owed for the other Fees. B. 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 Fee; • An identification of the improvements and the percentage of cost of the improvements which the 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. C. 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 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 Fee as of fiscal year end. 3 EXHIBIT A Consolidated Impact Fee Administrative Guidelines • The City will identify the amount of Fees collected and interest earned in each fiscal year for Fees. • The City will provide a description and accounting of any interfund transfers made by the Fee Fund. • The City will calculate reimbursements annually within 180 days of each fiscal year end. • The City will file an annual accounting of all development impact fees with the City Council and for public inspection within 180 days of each fiscal year end. VI. Developer Fee Credits (This Section VI applies only to the Downtown Traffic Impact Fee, Eastern Dublin Traffic Impact Fee and the Public Facilities Fee, and the definitions contained in the Resolutions establishing and amending said Fees shall apply. Unless otherwise indicated, all references to the "Fee" or "Fees" in this section shall mean only the Downtown Traffic Impact Fee, Eastern Dublin Traffic Impact Fee and the Public Facilities Fee.) A. General. This section VI establishes the authority for providing credits and/or reimbursement to developers who construct and/or dedicate any of the improvements and facilities for which the Fees are imposed (Fee 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 these guidelines. If the amount of the credit is greater than the Fees due for the development project the developer may, subject to the restrictions described herein, use the credit toward the Fees for another development project or transfer the credit to another eligible developer in accordance with these guidelines. If the developer cannot use or transfer the credit within ten years, then the credit will convert to a reimbursement right unless the developer first extends the credits as provided for in Section VLE of these Guidelines. 4 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 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. 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 be entered into between the City and the Alameda County Surplus Property Authority. C. 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 Fee facilities or dedication of land. 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. 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. 5 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 4. Any credits, which are unused ten years following their creation and which have not been extended pursuant to Section VLE of these Guidelines, 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 either be increased for inflation or accrue interest. 6. Credits are transferable, with the written approval of the City Manager, provided that the administrative transfer fee is paid, as specified in 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. 8. With respect to the Eastern Dublin Traffic Impact Fee and the Public Facilities Fee, credits earned by constructing or dedicating a certain category of Fee Facilities can only be used to offset fees for that same category. The Fee for other categories will be paid by the developer as specified in these guidelines. Fee credits will not be mixed between the fee categories. For example, with respect to the Eastern Dublin Traffic Impact Fee, unused credits from Section I (Eastern Dublin Traffic Improvements) cannot be used to offset the Section II component of the Eastern Dublin Traffic Impact Fee. Likewise, with respect to the Public Facilities Fee, unused credits from the Community Parks, Land component of the Fee cannot be used to offset the Libraries component of the Fee. Public Facilities Fee 9. With respect to the Eastern Dublin Traffic Impact Fee, no fee credits shall be established for the "Section II Residential BART Garage" component of the Fee. Payments from those monies shall be made in accordance with subsection VLK, below. D. Calculating the Fee Credits 6 EXHIBIT A Consolidated Impact Fee Administrative Guidelines For purposes of calculating the Eastern Dublin Traffic Impact Fee, the fee credits will be segregated into the following categories: Section L Eastern Dublin Traffic Improvements Section 11 (Excludes Section II Residential BART Garage): Citywide Traffic Improvements Section III: Regional Transportation (Note: Section III Fee suspended effective September 12, 1998, as long as Tri- Valley Transportation Development Fee remains in place.) For purposes of calculating the Public Facilities Fee, the fee credits will be segregated into the following ten categories: • Citywide: Community Parks, Land • Citywide: Community Parks, Improvements • Citywide: Community Buildings • Citywide: Libraries • Citywide: Civic Center • Eastern Dublin: Neighborhood Parks, Land • Eastern Dublin: Neighborhood Parks, Improvements • Eastern Dublin: Aquatic Center • Western Dublin: Neighborhood Parks, Land • Western Dublin: Neighborhood Parks, Improvements 1. General The fee credit/reimbursement agreement will identify the total credit for Fee facilities constructed or land dedicated for a particular development project. The contributed land or improvements must be the facilities described in the applicable Fee Resolutions and/or any 7 EXHIBIT A Consolidated Impact Fee Administrative Guidelines subsequent replacement resolutions. 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. 2. 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 Fee facilities to be constructed or dedicated. It is recognized that, in some cases, the scope of construction or dedication will not exactly match the Fee facilities shown in the exhibits to the Fee Resolution. The credits will be the lesser of the following: a) the estimated cost of the improvements as noted in the Resolution and/or any subsequent replacement resolution; or b) the pro-rated value of the improvement using the standard cost measurements in the Resolution and/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 (Downtown Dublin Traffic Impact Fee): Assume that a developer dedicates land for the partial widening of a major street to offset the 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 Fee. The Resolution used a standard cost measurement of $33 per square foot for right-of-way dedication in calculating the TIF. The Fee credits due to the developer can be calculated by determining the square footage of the land to be dedicated multiplied by the proper square foot cost measurement after automatic annual adjustments based on the change in land acquisition costs. 8 EXHIBIT A Consolidated Impact Fee Administrative Guidelines Illustrative Example 2 (Downtown Dublin Traffic Impact Fee): A Developer constructing multi-family homes contributes traffic signal improvements (TIF improvement) valued at $200,000. Assume that the Fee totals $2,320 per dwelling unit. The credit of $200,000 will cover approximately 86.21 dwelling units. When the building permit is issued for the 87�h dwelling unit, the developer will have used up the credit and will have to begin paying the Fee. Illustrative Example 3 (Eastern Dublin Traffic Impact Fee): 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 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 4 (Eastern Dublin Traffic Impact Fee): A developer constructing single family homes contributes traffic signal improvements (Section I improvement) valued at $200,000. Assume that the Traffic Impact Fee totals $6,950 per home, which is comprised of the Section I portion of$4,700 and the Section II and III portions of$2,250. The credit of$200,000 can only be used against the developer's Section I Fee of$4,700 per home, which will cover approximately 42.55 homes. When the building permit is issued for the 43rd home, the developer will have used up the credit and will have to begin paying the Section I Fee. The Section II and III portions of the Fee must be paid at the issuance of each building permit for all homes included in the development, as the Section I credit cannot be used to offset these portions of the Fee. 9 EXHIBIT A Consolidated Impact Fee Administrative Guidelines Illustrative Example 5 (Public Facilities Fee): Assume that a developer contributes 10 acres of land for a planned 20 acre community park to offset the Fees due for the Community Parks, Land fee component. The last adopted fee study used a standard cost estimate of$420,000 per acre for calculating the cost of improved community parkland. The fee credit due to the developer will be calculated using this cost estimate (10 acres $420,000 per acre= $4,200,000). Illustrative Example 6 (Public Facilities Fee): A developer constructing single family homes in Eastern Dublin contributes neighborhood park improvements valued at $200,000. The Neighborhood Parks, Improvements portion of the Fee for a single family home is currently $925 of the total Fee of $11,219. The developer must pay a Fee of $10,294 for each single-family home (total Fee of$11,219 less credit of$925) until the $200,000 credit is used up. This credit will cover the Neighborhood Parks, Improvements component of the Fee for the first 216 single-family homes constructed ($200,000/$925=216.22). When the developer applies for the building permit for the 217th home, he or she will begin paying this component of the Fee with the balance of the Public Facilities Fee due for the project. E. Use of Fee Credits 1. Credits expire when used or 10 years from the date of the credit/reimbursement agreement whichever occurs first. The life of credits may be extended by 5 years at the request of the credit holder (for a total life of 15 years, and, in addition, a credit holder that has been granted a 5-year extension may request one additional 1-year extension (for a total life of 16 years). The additional extension is at the discretion of the City Manager. 2. In the event the fee credits are unused at expiration, the fee credit shall convert to a reimbursement right as provided for under these guidelines. 10 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 3. The value of the credits will be listed in the agreement and tracked as they are used by the developer. The City's Administrative Services Department will keep record of the unused credits and provide this information to the Building & Safety Division at the time Fee credits are used. 4. Only the developer who builds or dedicates the Fee facilities will be entitled to the original or initial credits, until such time as they may be transferred in accordance with these guidelines. F. 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 2. Provided the City with a performance bond and a labor and materials bond or other adequate security to insure that the improvements will be constructed prior to the first Certificate of Occupancy for any building that is 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 written by a surety licensed to conduct business in the State of California and approved by the City Manager. Illustrative Example: Assume a developer is in the midst of completing certain improvements, which will be dedicated to the City to offset a portion of the 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. G. Transferring of Credits 11 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 1. 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 the Fee in question. 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. 2. There is no limit on the number of times that credits can be transferred between developments. 3. In certain circumstances, and as required in the interest of equity, the City Manager may, at his or her sole discretion, authorize the transfer of credits to a person who does not own an interest in property subject to the Fee. H. Reimbursement Rights (Excluding EDTIF Section II Residential BART Garage Fees) 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: 1. Reimbursement will be only from funds that were collected in payment of the same Fee as the one for which a developer is seeking reimbursement or, in the case of the Eastern Dublin Traffic Impact Fee, 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. 2. The City will determine the amount of funds available for reimbursement on an annual basis. L Process for Reimbursement of Reimbursement Rights 1. 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 Fees collected for the fiscal year that just ended. The Administrative 12 EXHIBIT A Consolidated Impact Fee Administrative Guidelines Services Department will also determine, for each of the Fees, the amount of Fee funds that are unspent and unencumbered as of the close of the fiscal year. For funds that are unspent and unencumbered, the City will allocate the necessary amount to be used to finance needed Fee facilities for the upcoming fiscal year. 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. 2. Allocating the Reimbursement Set-Aside to Outstanding Reimbursement Rights In the event that the City designates that a reimbursement set-aside is available, 50% 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 according to their amounts outstanding, including the remaining un-reimbursed portion of the oldest agreement. Unused reimbursement set-aside funds will not be carried over to another fiscal year. The following example illustrates this allocation: Illustrative Example: During one fiscal year, the City collects $88,000 in Fees for DTIF improvements. The total outstanding reimbursements owed for the DTIF 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 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- 13 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 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 follows: Holder of Current Value of Percent of Total Amt.of$22,000 Reimbursement Reimbursement Reimbursement Reimbursements Reimbursement Balance Owed Outstanding Distributed Remaining Developer A $28,000 35.90% $7,898.00 $20,102.00 Developer B $20,000 25.64% $5,640.80 $14,359.20 Developer C $30,000 38.46% $8,461.20 $21,538.80 TOTAL $78,000 $22,000.00 $56,000.00 J. Procedures for Construction of Designated Facilities by Developers 1. With respect to the Downtown Dublin Traffic Impact Fee and the Eastern Dublin Traffic Impact Fee, the improvements to be constructed or dedicated must be submitted for approval in writing to the Public Works Director no later than 30 calendar days prior to the approval of the Final Map on the development project. The submittal of the improvement plans and/or description of area to be dedicated shall be in sufficient detail, as determined by the Public Works Director, for the Public Works Director to make a determination regarding the approval. The developer constructing or dedicating improvements in lieu of paying a portion of the Fee must post a performance bond before the issuance of any grading and/or building permits for the construction of the improvements. 2. With respect to the Public Facilities Fee (PFF), as a matter of policy the City will design and construct community parks, community buildings, libraries, Civic Center improvements and the Eastern Dublin Aquatic Center. Developers may, with City approval, be permitted to design and construct neighborhood parks/squares and certain portions of community parks. The design and construction materials/methods must be in accordance with standard City specifications, and City inspectors shall be responsible for construction inspection throughout the duration of the construction period. The PFF Facilities to be constructed or dedicated by the developer must be 14 EXHIBIT A Consolidated Impact Fee Administrative Guidelines submitted for approval in writing to the Parks and Community Services Director no later than thirty calendar days prior to the approval of the Final Map on the development project. The submittal of the improvement plans and/or description of area to be dedicated shall be in sufficient detail, as determined by the Parks and Community Services Director, for the Parks and Community Services Director will attempt to make a determination regarding the approval. The developer constructing or dedicating PFF Facilities in lieu of paying a portion of the Fee must post a performance bond and a labor and materials bond before the issuance of any grading and/or building permits for the construction of the PFF Facilities. K. Guidelines for Issuing Trip Credits to Miscellaneous Infill Development-Downtown Dublin Traffic Impact Fee Only 1. Trip credits shall follow the land use and not the user. For example, assume User X relocates from Space A to Space B, both of which are located within the Downtown TIF area. User X shall not receive trip credit for vacating Space A. User X shall be charged the appropriate TIF amount for moving into Space B, subject to receiving trip credit as specified below. Similarly, the appropriate TIF amount shall be charged to the next user of Space A, subject to the appropriate trip credit. 2. Trip credit associated with unoccupied space shall be issued if, and only if, the space has been vacant for five (5) calendar years or less prior to the date when a use permit is issued to the new user. 3. TIF calculations/trip credit for uses, other than Urgent Care Medical Office, located within a general office building that houses multiple tenants (such as professional services, insurance companies, investment brokers, bank or savings and loan institutions, medical offices, restaurant or cafeteria, retail facilities, etc.) shall be based upon a uniform trip generation rate for Standard Commercial Office as specified in Exhibit D to the Resolution. For Urgent Care Medical Office use within a general office building, the trip generation rate for Clinic, as specified in Exhibit D to the Resolution, shall be used to calculate the TIF and the trip credit. 15 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 4. Trip credit for uses located within a shopping center containing retail stores, as well as non- merchandising facilities (such as office buildings, movie theaters, restaurants, post offices, banks, health clubs, recreational facilities, etc.) shall be based upon a uniform trip generation rate for the appropriate type of Shopping Center as specified in Exhibit D to the Resolution. 5. Trip credit shall be determined by the City based upon the adopted weekday trip generation rates as specified in Exhibit D to the Resolution. Examples of how trip credits can be applied to miscellaneous infill development projects within the Downtown TIF area are presented below. Illustrative Example 1: User X moves his/her fast food restaurant business into an individual (standalone) building located within the Downtown TIF area. Previous use of the building consisted of a sit-down restaurant, which was vacated approximately two years prior to User X obtaining his/her use permit. Would User X be entitled to trip credit? Answer: Yes, he/she would be entitled to trip credit for the previous sit-down restaurant use which generates fewer daily trips than a fast food restaurant. User X would pay TIF based on the net daily trips estimated for his/her project. Note: If the subject building was vacated more than five years prior to the date when the use permit was issued to User X, User X would then not receive any trip credit. Illustrative Example 2: User X (insurance company office) and User Y (dental office) occupy office space in two separate general office buildings (building A and building B, respectively). Both buildings are located within the Downtown TIF area. The two users have decided to switch office spaces (e.g., User X would relocate to the space in building 16 EXHIBIT A Consolidated Impact Fee Administrative Guidelines B and User Y would relocate to the space in building A). Would either user be required to pay TIF? Answer: No, because as each user moves into the other space, he/she would receive full trip credit for the previous use, based on the uniform trip generation rate for Standard Commercial Office as specified in Exhibit D to the Resolution. Note: Although User Y operates a dental office, which generates more daily trips than an insurance company office (User X), the same trip generation rate (i.e., Standard Commercial Office) is used in both cases to calculate the TIF, as both uses are proposed to take place within a general office building. Illustrative Example 3: User X proposes to change the use of his/her individual (standalone) space within the Downtown TIF area from Health Club to Bowling CenterNideo Arcade. How would the TIF be determined? Answer: The TIF would be determined based on the net daily trips estimated for the proposed project. For example, User X would be charged TIF based on the proposed Bowling CenterNideo Arcade use, but would receive trip credit for the discontinued Health Club use. Illustrative Example 4: User X proposes to establish an Urgent Care Medical Office within a general office building by replacing existing retail/restaurant uses located on the first floor of the building. How would the trip credit be determined? Answer: The trip credit would be determined based on the trip generation rate for Standard Commercial Office. Note: The TIF would be based upon the net increase in daily trips due to the proposed project (e.g., the difference between Clinic trips and Standard Commercial Office trips). 17 EXHIBIT A Consolidated Impact Fee Administrative Guidelines L. Eastern Dublin Traffic Impact Fee-Section II Residential BART Garage 1. Payment to Alameda County Surplus Property Authority (ACSPA) for $6 million of BART Garage Costs (Section II Residential BART Garage) With respect to the Eastern Dublin Traffic Impact Fee, payment of Section II Residential BART Garage Fees, payment shall be made to the Alameda County Surplus Property Authority (ACSPA), which is responsible for the parking garage construction and dedication of the improvement to the Bay Area Rapid Transit (BART) District for public. 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 million dollars). Payment to Alameda County Surplus Property Authority is subject to the following specific guidelines: a. The maximum to be disbursed from fees collected shall be six million dollars ($6,000,000), which amount shall not be increased for any reason including inflation. In addition, any 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 any other source including the City's General Fund. C. The amount disbursed will depend on the payment 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 any. e. The procedure for distributing the disbursements to ACSPA is described below. 2. Process for Payment to ACSPA Section II Residential BART Garage Fee Funds a. Initial Distribution of Section II Residential BART Garage Fee Funds 18 EXHIBIT A Consolidated Impact Fee Administrative Guidelines i. Once the BART Garage has been accepted by BART and made available for public use, the ACSPA shall provide to the City a written certification of the completion of the BART Garage. ii. Within 45 days of receipt of the certification described above, City 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 quarterly balance of Section II BART Garage Fees and the earning rate applied to pooled funds managed by 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 below. b. Annual Determination of Section II Residential BART Garage Fee Funds Available for Payment i. Within 180 days 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 previously 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 available, to the extent that the total distribution including previous payments, excluding any amounts paid as interest, does not exceed the maximum amount described above. iii. The Administrative Services Department shall annually report to the ACSPA the current balance remaining Section II Residential BART Garage fees that may be paid. 19 EXHIBIT A Consolidated Impact Fee Administrative Guidelines 20