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HomeMy WebLinkAboutReso 01-2016 RESOLUTION NO. 01-2016 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING THE ANNUAL IMPACT FEE AND SEWER CAPACITY CHARGE REPORT FOR FISCAL YEAR 2014-15 AND MAKING THE REQUIRED 5-YEAR FINDINGS FOR UNEXPENDED FUNDS FOR THE CHILDCARE IMPACT FEE AND TRAFFIC IMPACT FEE PURSUANT TO THE MITIGATION FEE ACT. WHEREAS, pursuant to the Mitigation Fee Act (Government Code Section 66000 et seq.), the City is required to annually report certain information regarding the collection of development impact fees; and WHEREAS, under the Mitigation Fee Act, the City is also required to make certain findings every 5 years regarding unexpended impact fees and summarize those findings in the annual report("Report"); and WHEREAS, the Report for Fiscal Year 2014-15 identifies unexpended impact fees for the Childcare Impact Fee and Traffic Impact Fee programs for which findings are required; and WHEREAS, pursuant to Government Code section 66013, the City is also required to annually report certain information in connection with the collection of Sewer Capacity Charges; and WHEREAS, the Report for Fiscal Year 2014-15, attached hereto and incorporated herein as Exhibit A, contains both the annual reporting information for the City's development impact fee programs and the required 5-year findings for unexpended development impact fees for the Childcare Impact Fee and the Traffic Impact Fee and also contains a section with the necessary annual information for Sewer Capacity Charges, and WHEREAS, the Report has been available at City Hall for at least fifteen (15) days prior to this Council meeting, and was distributed to all Councilmembers in advance of said meeting. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby approves the Report for Fiscal Year 2014-15. BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco hereby makes the findings outlined in the Report for Fiscal Year 2014-15, attached hereto and incorporated herein as Exhibit A, as required by Government Code Sections 66006. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 13th day of January, 2016 by the following vote: AYES: Councilmembers Karyl Matsumoto, Richard A. Garbarino, and Liza Normandy Vice Mayor Pradeep Gupta and Mayor Mark N. Addiego NOES: None ABSTAIN: None ABSENT: None ATTEST:' • a N . -Ili, City Clerk Annual Impact Fee Report For the City of South San Francisco For Fiscal Year 2014/2015 This report contains information on the City of South San Francisco's development impact fees for Fiscal Year 2014-15. This information is presented to comply with the annual reporting requirements contained in Government Code section 66000 et seq. Please note that this annual report is not a budget document, but rather is compiled to meet reporting requirements. It is not intended to represent a full picture of currently planned projects as it only reports project information, revenues and expenditures for Fiscal Year 2014-15. In addition, this report contains the required 5-year findings for unexpended funds for the Childcare Impact Fee and the Traffic Impact Fee pursuant to Government Code section 66001. Government Code Section 66006 requires local agencies to submit annual and five-year reports detailing the status of development impact fees. The annual report must be made available to the public within 180 days after the last day of the fiscal year, and must be presented to the public agency (City Council) at least 15 days after it is made available to the public. This report summarizes the following annual reporting information for each of the development impact fee programs: 1. A brief description of the fee program. 2. Schedule of fees. 3. Beginning and ending balances of the fee program. 4. Amount of fees collected, interest earned, and transfers/loans. 5. An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. 6. A description of each interfund transfer or loan along with the date the loan will be repaid and the rate of interest and a description of the public improvement on which the transferred or loaned fees will be expended. 7. The estimated date when projects will begin if sufficient revenues are available to construct the project. 8. The amount of refunds made to property owners. 1 9. Required 5-year Findings for the Childcare Impact and Traffic fee program. In addition, this report contains information on the City of South San Francisco's sewer capacity charges. Government Code Section 66013 requires local agencies to submit annual reports detailing the status of sewer capacity charges. The annual report must be made available to the public within 180 days after the last day of each fiscal year. This report summarizes the following information for the sewer capacity charges: 1. A description of the charges deposited in the fund. 2. The beginning and ending balance of the fund and the interest earned from investment of moneys in the fund. 3. The amount of charges collected in that fiscal year. 4. An identification of all of the following: a. Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used. b. Each public improvement on which charges were expended that was completed during that fiscal year. c. Each public improvement that is anticipated to be undertaken in the following fiscal year. 5. A description of each interfund transfer or loan from the capital facilities fund along with the date the loan will be repaid and the rate of interest. In the case of an interfund transfer, the report identifies the public improvements on which the transferred moneys are or will be expended. More detailed information on certain elements of the various fee programs is available through other documents such as nexus studies, master plans, capital improvement programs, and budgets. The City does not typically earmark impact fees for any specific project as the revenues are collected, but rather the revenues are applied toward a series of capital improvement projects as outlined in the nexus studies, such as a future sewer infrastructure, transportation infrastructure, and other capital facilities. 2 TABLE OF CONTENTS Page Citywide Impact Fee Program Childcare Impact Fee Fund (Fund 830) Overview and Required Findings 4 Financial Reporting 6 Public Safety Impact Fee Fund (Fund 821) Overview and Required Findings 7 Financial Reporting 8 Plan Area Impact Fee Programs Oyster Point Interchange Impact Fee Fund (Fund 840) Overview and Required Findings 9 Financial Reporting 11 Traffic Impact Fee Fund (Fund 820) Overview and Required Findings 12 Financial Reporting 14 Sewer Impact Fee Fund (Fund 810) Overview and Required Findings 15 Financial Reporting 17 Other Reportable Citywide Charges Sewer Capacity Charge Fund (Fund 730) Overview and Required Findings 18 Financial Reporting 19 Fee Schedules 20 3 Childcare Impact Fee Program The nexus study for this citywide impact fee program was adopted by City Council in 2001. The study identified the need for new and expanded child care facilities in the City. Updates since 2001 to this fee program have included a periodic inflation adjustment. The fee program includes a 5% administrative fee. The estimated cost of the new and expanded facilities included in the nexus study totaled $43.9 million. The nexus study identified new development's share of the cost as 24.6% of the total new and expanded facilities cost. The expected development impact fee revenue was estimated at $11.3 million, which includes administrative costs of 5% of total fee revenue. Existing development's share of the cost is $33.1 million (75.4% of new facilities) which must be funded with other funding sources such as the City's General Fund, grants, developer contributions, and Community Development Block Grants. As of June 30, 2015, approximately $2.5 million in fees has been collected, $670,000 in interest earnings has been credited to the program, and $620,000 has been expended on projects and program administration fees. Required 5-Year Findings for Unexpended Funds/Annual Reporting Requirements: 1. The purpose of the Childcare Impact Fee Program is to provide new development's share of funding for new and expanded childcare facilities required at build-out of the City. 2. The reasonable relationship between the childcare impact fee and the purpose for which it is charged is demonstrated in the South San Francisco Child Care Facilities Impact Fee Nexus Study dated September 2001 and adopted November 14, 2001. As of June 30, 2015, there continues to be a need for new childcare facilities due to the influx of new residents and additional employees from new developments. Currently, the City runs two licensed childcare facilities. There is a 4-year waiting list for space at these facilities; there are 640 children on the waiting list. The City estimates that there will be 5,000 new residents in the City within the next 5 years. The City reasonably anticipates that these new residents will require additional childcare services. 3. The sources and amounts of funding anticipated for completion of the future new and expanded childcare facilities are in the South San Francisco Child Care Facilities Impact Fee Nexus Study dated September 2001 and adopted November 14, 2001. As noted in the nexus study, the source of funding existing development's share is a combination of the General Fund, grants, developer contributions, and Community Development Block Grants. 4. Four projects have been completed using Childcare Impact Fee Program funding. The approximate date for funding and constructing future facilities 4 will be determined, at the discretion of the City Council, when adequate additional funds for facility construction have accumulated. 5. The approximate $2.5 million of unexpended impact fee revenue will be used to fund projects to increase childcare spaces in the City. As stated above, as of November 24, 2015, there are 640 children on the waiting list for the City's childcare programs. Community Care licensing requires 35 square feet of indoor space per child and 75 square feet of outdoor space per child. A fully equipped facility with kitchen and staff space for 100 children would require approximately 5,000 square feet of indoor space. Consequently, in light of the significant demand, the City requires additional funding/revenue in order to construct the necessary facilities. The City's voters recently passed Measure W, which may provide funding for a new recreational facility within the City. The City is contemplating using a portion of the unexpended impact fee revenue to fund additional childcare facility space at the new recreational facility. Construction of other childcare facilities would require the expenditure of General Fund reserves, which are designated for any purpose at the discretion of the City Council. Thus, the approximate date for funding and construction of additional childcare facilities is dependent on the Council's prioritization of these projects. The funding source of existing development's share of these projects will be the City's General Fund, less any grant funds and developer contributions received. 6. There are no potential refunds of Childcare Impact fees to property owners. 7. There were not any interfund transfers or loans 5 Childcare Impact Fee (Fund 830) This citywide development impact fee program funds new development's fair share of new and expanded childcare facilities to serve the City. Beginning balance,July 1, 2014 $ 1,995,688 Additions Childcare impact fees collected $477,806 Interest earned 18,701 Total additions 496,507 Disbursements % Fee Funded City administration 2,500 100% Projects 0 Total disbursements (2,500) Remaining balance as of June 30,2015 $2,489,695 Planned projects for Fiscal Year 2015/16 % Fee Funded There are no planned projects for Fiscal Year 2015/16 0 Remaining balance after planned projects $Z489,695 6 Public Safety Impact Fee Program The nexus study for this citywide impact fee program was adopted by City Council in 2012. The study identified the need for new and expanded public safety capital facility and equipment to support new development projects. This fee program also includes an annual inflation adjustment. The fee program includes a 2% administrative fee. The estimated cost of the new and expanded public safety equipment and facilities included in the nexus study totaled $40.4 million. The nexus study identified new development's share of the cost at $10.4 million (25.6% of the total new and expanded equipment and facilities cost). Existing development's share of the cost is $30.0 million (74.4% of new equipment and facilities) which must be funded with other funding sources such as the City's General Fund, grants, or developer contributions. As of June 30, 2015, approximately $299,000 in fees have been collected, $2,000 in interest earnings have been credited to the program, and no money has yet been expended on projects or fee program administration. Annual Reporting Information: 1. The Public Safety Impact Fee is collected to provide new development's share of funding for new and expanded public safety capital facility and equipment required at build out of the City. 2. See page 20 for the fee schedule outlining the amount of the fee; See page 8 for beginning and ending balance of the account for this fee and for the amount of fees collected and interest earned. 3. No projects have been completed using the Public Safety Impact Fee Program funding. The approximate date for funding and constructing future facilities and procuring future equipment will be determined when adequate additional funds have accumulated. 4. There were not any interfund transfers or loans 5. There are no potential refunds of Public Safety Impact Fees to property owners 7 Public Safety Impact Fee (Fund 821) This citywide development impact fee program funds new development's fair share of new and expanded capital facility and equipment to serve the City. Beginning balance,July 1, 2014 $72,992 Additions Public Safety impact fees collected—Fire $ 159,747 Public Safety impact fees collected - Police 66,999 Interest earned 1,392 Total additions 228,138 Disbursements Projects 0 Total disbursements 0 Remaining balance as of June 30,2015 $301,130 Planned projects for Fiscal Year 2015/16 % Fee Funded New Cardiac Monitors 97,280 25.6% Replace Safety Clothing 26.368 25.6% Total planned projects for Fiscal Year 2015/16 (123,648) Remaining balance after planned projects $ 177,482 8 Oyster Point Interchange Impact Fee Program The City Council adopted this plan area fee program on May 23, 1984 using a February 1983 Feasibility Study prepared by Nolte and Associates in conjunction with Resolution No. 71-84 which created the "Oyster Point Contribution Formula". The 1983 Feasibility Study identified the need for the Oyster Point Interchange project which was, at that time, referred to as the grade separation project. Updates to the fee program since 1984 include the following: 1. An ongoing monthly inflation adjustment. 2. June 26, 1996 fee program change via Resolution No. 102-96 that included adjustments for: a) the inflationary index that reduced the fee by approximately 22%, b) the project description which increased the scope of the project to include the Terrabay hook ramps and the southbound off-ramp flyover, and c) the use of more current trip generation rates 3. October 9, 1996 fee program change via Resolution No. 152-96 that added additional land uses with their associated trip generation rates. The Feasibility Study identified new development's share of the grade separation project cost at 64.8% and existing development's share of the cost at 35.2%. The grade separation was completed and funded in 1995 and is not part of this annual report. The increased scope portion of the project, added in 1996, was identified as being 100% the responsibility of new development. Of this additional scope, the flyover, estimated to cost $6.4 million, was completed in 2005, and the hook ramps, estimated to cost $15 million, were completed in October 2006. Additional work relating to property transfers and gaining final Caltrans project acceptance is on-going. Annual Reporting Information 1. The purpose of the Oyster Point Interchange Impact Fee Program is to provide new development's share of funding for this project required at build- out of the plan area. 2. The construction portion of the flyover and hook ramps is completed and funding through the fee program will continue through build-out of the plan area. As impact fees are collected, they will be used to pay back the Successor Agency to the Redevelopment Agency for the advance of $14.45 million. 3. See page 21 for the fee schedule outlining the amount of the fee; See page 11 for beginning and ending balance of the account for this fee and for the amount of fees collected and interest earned. 9 4. There are no potential refunds of Oyster Point Interchange Impact Fees to property owners. 5. The fund has one loan from the former Redevelopment Agency. The amount owed as of June 30, 2015 is approximately $11.4 million. Since the dissolution of the Redevelopment Agency in 2012, the interest rate charged by the Successor Agency is 0%. The loan is repaid as new impact fee revenue is received. Because the amount of future impact fee revenue is unknown, the repayment date is unknown. 10 Oyster Point Interchange Impact Fee (Fund 840) This plan area development impact fee program funds new development's fair share of the Oyster Point Interchange project. Beginning balance,July 1,2014 $ 24,615 Additions Fees collected $ 352,410 Interest earned 1,182 Total additions 353,592 % Fee Disbursements Funded Projects 0 Repayment of RDA Loan 352,674 100% Total disbursements (352,674) Remaining balance as of June 30,2015 $ 25,533 % Fee Planned Projects for Fiscal Year 2015/16 Funded U.S. 101 Off Ramp/Hook Ramps(st1013) 38,366 100% U.S. 101 Flyover to Oyster Point(st1014) 14,196 100% Total Planned Projects in Fiscal Year 2015/16 (52,562) Remaining Balance After Planned Projects (27,029) Due Date Loans to Oyster Point Interchange Fee Fund and Interest from Successor Agency to RDA Rate None& Balance, July 1, 2014 11,722,826 None Less payment during fiscal year (352,674) Balance, June 30, 2015 (11,370,152) Fees available(future fees required)for current and completed projects [1] $(11,397,181) [1] Includes the Successor Agency loan of$11.4 million. 11 Traffic Impact Fee Program The 2001 nexus study for this plan area fee was adopted by City Council in 2002. The study identified the need for new and expanded roadway and intersection improvements to serve the area located east of US 101 in the City. The study was updated on May 6, 2005 and on July 19, 2007. This fee program includes an annual inflation adjustment and a 2.5% administrative fee. The estimated cost of the new and expanded facilities included in the 2007 study totaled $38.5 million ($32.4 million in net cost after accounting for fees already received). There are 26 road improvements listed in the 2007 study and two studies for a total of 28 projects. The study determined that new development would be responsible for 100% of the cost of the 28 projects. As of June 30, 2015, approximately $12.0 million in fees have been collected, $2.0 million in interest earnings have been credited to the program, and $7.8 million has been expended on projects and fee program administration. Required 5-Year Findings for Unexpended Funds/Annual Reporting Requirements 1. The purpose of the Traffic Impact Fee Program is to provide new development's share of funding for new and expanded roadway and intersection improvements to serve the area located east of US 101 at build- out of the plan area. 2. The reasonable relationship between the traffic impact fee and the purpose for which it is charged is demonstrated in the Traffic Impact Fee Study Updated East of 101 Area. The fee study determined that 6,538 PM Peak Hour Trips would be generated by the growth in the East of 101 Area upon General Plan build-up. In order to mitigate the increase in PM Peak Hour trips, a list of traffic improvements was prepared. As of June 30, 2015, there continues to be a need for new Traffic Impact Fees due to further development east of Highway 101, including several large developments under construction or in the planning stages. 3. The sources and amounts of funding anticipated for completion of the future new and expanded roadway and intersection improvements are in the Traffic Impact Fee Study Updated East of 101 Area. 4. Of the 26 improvement projects listed in the nexus study, six are currently under construction. A traffic study, which will prioritize the construction of the new and expanded facilities listed in the nexus study is in progress. The projects currently underway are shown in the Fiscal Year 2014-15 Capital Improvement Program (CIP) budget. The remaining nexus study projects will be programmed in future years' CIP budgets. Note that after the build-out of the east of Highway 101 area is completed, it is anticipated that traffic levels will be even higher than was projected in the 2007 study, and that additional projects will be needed to mitigate the increased traffic. 12 5. Of the approximate $5.9 million of unexpended traffic impact fee revenue, $3.7 million is budgeted to be expended on projects in Fiscal Year 2015-16 (see table on page 14). The remaining $2.2 million will be used to fund projects in subsequent years, such as the design of projects listed in the original and updated fee studies. The approximate date of funding to complete financing of projects identified in the nexus study and the traffic fee study updates is unknown, as the sole source of funding is the traffic impact fee, which is dependent on the implementation of new developments. Based on the findings in the nexus study, new development is responsible for 100% of the cost. 6. There are no potential refunds of Traffic Impact Fees to property owners. 7. There were not any interfund transfers or loans. 13 Traffic Impact Fee (Fund 820) This plan area development impact fee program funds new development's fair share of new and expanded roadway and intersection improvements east of US 101 to serve the City. Beginning balance,July 1, 2014 $6,795,927 Additions Fees collected $ 1,411,851 Interest earned 50,753 Total additions 1,462,604 Disbursements % Fee Funded City administration 2,500 100% South Airport Blvd/Utah Ave(TIF#20&tr1010) 1,407,510 100% Traffic Impact Fee Study(tr1013) 15,196 Grand/East Grand(TIF#26&tr1103) 19,189 100% Oyster Point Blvd/Route 101 Northbound On-Ramp (TIF#35&tr1105) 527,685 100% 101 Northbound Off-Ramp to E Grant/Executive(TIF #38&tr1107) 340,152 100% US-101 Produce Avenue Interchange(TIF#39& tr1404) 1,449 0.6% Total disbursements (2,313,681) Remaining Balance as of June 30,2015 $5,944,850 Planned Projects for Fiscal Year 2015/16 % Fee Funded South Airport Blvd/Utah Ave(TIF#20&tr1010) 541,642 100% Traffic Impact Fee Study(tr1013) 116,458 100% Grand/East Grand (TIF#26&tr1103) 298,522 100% Oyster Point Blvd/Route 101 Northbound On-Ramp (TIF#35&tr1105) 1,256,346 100% Airport Blvd/Miller Ave(TIF#12 &tr1102) 5,772 100% Airport Blvd/Grand Ave(TIF#13&tr1104) 7,289 101 Northbound Off-Ramp to E Grant/Executive(TIF #38&tr1107) 68,907 100% Gateway/E. Grand Traffic Improvements(tr1004) 203,986 100% US-101 Produce Avenue Interchange(TIF#39& tr1404) 9,788 5% E. Grand, Gateway& Forbes Intersection(tr1602) 600,000 100% Oyster Pt., Gateway&Veterans Intersection (tr1603) 600,000 100% Total planned projects for Fiscal Year 2015/16 (3,708,710) Remaining balance after planned projects $ 2,236,140 14 Sewer Impact Fee Program The 2002 nexus study for this plan area fee was adopted by City Council in 2002. The study identified the need for new and rehabilitated sewer collection and treatment facilities to serve the area located east of US 101 in the City. This fee program also includes an annual inflation adjustment. The estimated cost of the 20 new and expanded sewer projects included in the study totaled $21.4 million. The study identified new development's share of the cost of the required facilities at $15.5 million (72.4% of the total new and expanded facilities cost) while existing development's share of the cost (existing deficiency) is $5.9 million (27.6% of new facilities). New development's share of the cost, $15.5 million was increased to include some master planning costs ($425,000) and some CEQA reviewing costs ($600,000) for a total cost to new development of $16,425,000. Of that amount, $12,429,000 was to be sewer impact fee funded and $4,066,000 was to be funded directly by developer contributions. Of the twenty total projects listed in the nexus study, eleven projects are either fully or partially funded with the sewer impact fee funds, four are existing development's responsibility, four are to be funded by developer contributions, and one is to be funded with a combination of developer contributions and revenues from existing development. Existing development's share will be funded with the sewer charges appearing on property tax bills as a direct levy. As of June 30, 2015, approximately $7.6 million in fees (including a prepayment from a large bio-technology firm) has been collected, $400,000 in interest earnings has been credited to the program, and $6.1 million has been expended on projects and fee program administration. Annual Reporting Information: 1. The purpose of the Sewer Impact Fee Program is to provide new development's share of funding for new and rehabilitated sewer collection and treatment facilities to serve the area located east of US 101 at build-out of the plan area. 2. See page 21 for the fee schedule outlining the amount of the fee; See page 17 for beginning and ending balance of the account for this fee and for the amount of fees collected and interest earned. 3. Six of the eleven projects listed in the nexus study to be funded fully or partially from sewer impact fees have been started and four of those are completed. The projects currently underway are shown in the Fiscal Year 2015-16 CIP budget. The remaining nexus study projects will be programmed in future years' CIP budgets. 4. As of June 30, 2015, the Sewer Impact Fee Program does not have any unexpended funds. The fund balance at end of Fiscal Year 2014-15 is approximately negative $40,000 (the fund has $1.93 million in cash balance, which includes $1.97 million in prepaid/unearned fee revenue). 15 5. There are no potential refunds of Sewer Impact Fees to property owners. 16 Sewer Impact Fee (Fund 810) This plan area development impact fee program funds new development's fair share of new and rehabilitated sewer collection and treatment facilities to serve the area located east of US 101 in the City. Beginning balance,July 1,2014 $ 1,474,649 Additions Fees collected $ 459,624 Interest earned 12,837 Net Fee Credit Permits 0 Total additions 472,461 Disbursements % Fee Funded City administration 2,500 100% Littlefield Ave. (So)Subtrunk Repair/Upgrade (ss1023) 16,191 Total Disbursements (18,691) Remaining balance as of June 30,2015 $ 1,928,419 Planned Projects for Fiscal Year 2015/16 % Fee Funded Littlefield Ave. (So)Subtrunk Repair/Upgrade (ss1023) 46,817 80% Total Planned Projects in Fiscal Year 2015/16 (46,817) Remaining Balance After Planned Projects 1,881,602 Due Date and Loans to Sewer Impact Fee Fund Interest Rate Developer Prepayment for East Grand None& Pooled Avenue Subtrunk project(ss1014)[1] (1,969,879) City Rate Fees available(future fees required)for current and completed projects [2] $(88,277) [1] The developer prepaid the sewer impact fees to allow for earlier construction of project ss1014 and receives credit against future sewer impact fee obligations. [2] Includes the$2.0 million developer prepayment. 17 Sewer Capacity Charge Program The original analysis was adopted by City Council in 2000 and annual updates included a preset adjustment to the charges based on borrowing costs. The most current Sewer Capacity Charge Analysis by Bartle Wells & Associates is dated August 26, 2009 and was adopted by City Council in April of 2010 to be effective in Fiscal Year 2010-11. This analysis identifies the need for sewer collection and treatment capacity in the City. The estimated capital investment (cost less depreciation) of the collection and treatment facilities was included in the analysis and totaled $161.2 million in 2009 dollars ($63.5 million from the 2000 analysis). The analysis identified the capacity charge as a cost recovery charge associated with providing collection and treatment capacity to new development, both through the existing infrastructure provided, and through future capital projects not funded by the Sewer Impact Fee Program located East of 101. Existing development's share of the benefit of these facilities is funded from sewer charges appearing on property tax bills as a direct levy. As of June 30, 2015, approximately $1.4 million in sewer capacity charge revenues has been collected and $36,000 in interest earnings has been credited to the program since the July 2010 update became effective. During this timeframe, approximately $1.2 million has been expended on projects and program administration. Annual Reporting Information: 1. The sewer capacity charges do not exceed the estimated reasonable costs of providing the facilities for which the fee is charged (see § 66013, subd. (a)). 2. The sewer capacity charges accounting and reporting requirements are being met, i.e., the revenues are kept in a separate fund and the City provides annual reports on the use of the funds collected (see § 66013, subds. (c) and (d)). Since the update for the sewer capacity charges went into effect in Fiscal Year 2010- 11, $1.2 million of collected sewer capacity charges has been spent on Water Quality Control Plant upgrades. 3. There were not any interfund transfers or loans 18 Sewer Capacity Charges (Fund 730) This fee program funds the cost associated with providing collection and treatment capacity to new development, both through the existing infrastructure provided, and through future capital projects not funded by other sources. Beginning Balance, July 1, 2014 $326,897 Charges collected $210,189 Interest earned $3,783 Total Additions $213,972 Disbursements % Charge Funded City Administration $2,500 100% Projects $ 0 Total Disbursements $2,500 Remaining Balance, June 30, 2015 $538,369 Planned Proiects for Fiscal Year 2015/16 Amount % Charge Funded No projects are planned $0 Remaining Balance After Planned Projects $538,369 19 Fee Schedules for 2014-15 Childcare Impact Fee Rates for Fiscal Year 2014-15 Land Use per Unit or per Gross Sq. Ft. (GSF) Residential Low Density $1,979 per unit Medium Density $1,858 per unit High Density $1,851 per unit Other Residential $1.28 per GSF Commercial/Industrial Commercial / Retail $0.68 per GSF Hotel /Visitor Services $0.18 per GSF Office / R&D $0.57 per GSF Other Non-Residential $0.54 per GSF Public Safety Impact Fee Rates for Fiscal Year 2014-15 Land Use per Unit or per Square Foot (SF) Residential Low Density $1,285 per unit Medium Density $810 per unit High Density $563 per unit Commercial/Industrial Commercial / Retail $0.44 per SF Hotel /Visitor $0.42 per SF Office/ R&D $0.44 per SF Industrial $0.18 per SF 20 Fee Schedules for 2014-15 Oyster Point Interchange Impact Fee Rates for Fiscal Year 2014-15 The impact fee is calculated by multiplying the number of vehicle trips by $154 and by the percentage increase in the Construction Cost Index (CCI) as published in the Engineering News-Record (ENR) from the date of adoption, when the CCI was 6,552.16, to the current effective CCI. Vehicle Trips are based on average daily traffic (ADT). The rates shown below are based on 1,000 gross square feet of land use. The ENR CCI published in April is used to calculate annual increases. The CCI for April 2013 and 2014 were 10,373.34 and 10,894.84, respectively, resulting in a percentage increase of 5.0%. Land Use ADT Trip Rate per 1,000 GSF General Industrial 5.46 Manufacturing 3.99 Warehousing 4.50 Hotel 10.50 General Office Building 12.30 Research & Development(R&D) 5.30 Restaurant(Dinner House/High Turn-over) 56.30/ 164.40 General Commercial 48.00 Traffic Impact Fee Rates for Fiscal Year 2014-15 Area of Building x Land Use Fee where the Land Use Fee is: R&D = $5.48 per building sq. ft. Hotel = $1,275.04 per room Commercial = $22.70 per building sq. ft. Sewer Impact Fee Rates for Fiscal Year 2014-15 Gallons per area x area x $4.46. The generation rate for all land use is 400 gallons per day per 1,000 square feet of building area. 21 Sewer Capacity Charge for Fiscal Year 2014-15 The fee is updated each calendar year. For both calendar years 2014 and 2015, the fee was $3,944 per EDU. An EDU, or Equivalent Dwelling Unit, is the amount and strength of sewage equivalent to that discharged by a single-family residence. EDU = (0.00347 x Q) + (0.362 x BOD) + (0.589 x TSS). Q = gallons per day of sewage to be discharged; BOD = pounds per day of biochemical oxygen demand to be discharged; TSS = pounds per day of total suspended solids to be discharged. 2564849.1 22