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HomeMy WebLinkAboutReso 09-2022 (22-09)City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Council Resolution: RES 09-2022 File Number: 22-09 Enactment Number: RES 09-2022 RESOLUTION APPROVING THE ANNUAL IMPACT FEE AND SEWER CAPACITY CHARGE REPORT FOR FISCAL YEAR 2020-21. 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 five (5) years regarding unexpended impact fees and summarize those findings in the annual report ("Report"); and WHEREAS, the Report for Fiscal Year 2020-21 identifies unexpended 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 2020-21, attached hereto and incorporated herein as Exhibit A, contains both the annual reporting information for the City's development impact fee programs and also contains a section with the necessary annual information for Sewer Capacity Charges; and WHEREAS, on January 12, 2022, the City Council reviewed the Report during its regularly scheduled and duly public meeting pursuant to the requirements of Government Code section 66006; and WHEREAS, the Report has been available at City Hall for at least fifteen (15) days prior to the January 12, 2022 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 2020-21. 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 2020-21, attached hereto and incorporated herein as Exhibit A, as required by Government Code Sections 66006. E3 City of South San Francisco Page 1 File Number. 22-09 Enactment Number: RES 09-2022 At a meeting of the City Council on 1/12/2022, a motion was made by Councilmember Coleman, seconded by Councilmember Flores, that this Resolution be approved. The motion passed. Yes: 5 Mayor Nagales, Vice Mayor Nicolas, Councilmember Coleman, Councilmember Flores, and Councilmember Addiego Attest by �94 4 zg�— qsa Govea Acosta, City Clerk City of South San Francisco page 2 1 Annual Impact Fee Report For the City of South San Francisco For Fiscal Year 2020-21 This report contains information on the City of South San Francisco’s development impact fees for the Fiscal Year 2020-21. The annual reporting requirements are in Government Code section 66000 et seq. Please note that this annual report is not a budget document but rather meets reporting requirements. The report does not intend to represent a full picture of currently planned projects. It only reports project information, revenues, and expenditures for the Fiscal Year 2020-21 Government Code Section 66006 requires agencies to outline the status of development impact fees. Government Code Section 66001 requires local agencies to submit five-year financial reports. The annual report is available to the public within 180 days after the last day of the fiscal year. The report is presented to the public agency (the City Council) at least 15 days after it is made available to the public. This report summarizes each of the development impact fee programs. Requirements under Government Code Section 66006 are: 1. A brief description of the fee program. 2. The amount of the fee. 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. The expenditures on each project. The total percentage of the cost of the public improvement is funded with development impact fees. 6. A description of each interfund transfer or loan. The date the loan will be repaid, the rate of interest, and a description of the public improvement. 7.The estimated date when projects will begin if enough revenues are available to construct the project. 8. The number of refunds made to property owners. This report also summarizes five-year reporting information for the Oyster Point Interchange Impact Fee program as required under Government Code Section 66001: 1. The purpose of the fee expenditure. 2. The reasonable relationship between the fee and the purpose used. EXHIBIT A 2 3. All sources and amounts of funding anticipated to complete financing in incomplete improvements. 4. The approximate dates on which the funding referred to in subparagraph (3) above are deposited into the appropriate account or fund. This report also contains information on the City of South San Francisco’s sewer capacity charges. Government Code Section 66013 requires agencies to submit annual reports on the status of sewer capacity charges. The public must have access to the report 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 in the fund. 3. The amount collected in that fiscal year. 4. An identification of all 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, 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 money is or will be expended. More detailed information on the various fee programs is available. Nexus studies, master plans, capital improvement programs, and budgets are all made public on the City's website. The City does not earmark impact fees for any specific project as revenues come in. Nexus studies outline capital improvement projects. Nexus studies examples may include future sewer infrastructure, transportation infrastructure, and other capital facilities. This report is accurate as of the time of publication. Any proposed plans are subject to change based on City Council action. 3 TABLE OF CONTENTS Citywide Impact Fee Program Bicycle and Pedestrian Impact Fee Fund (Fund 822) Overview and Required Findings ............................................................................5 Financial Reporting ..................................................................................................6 Childcare Impact Fee Fund (Fund 830) Overview and Required Findings ............................................................................7 Financial Reporting ..................................................................................................8 Commercial Linkage Impact Fee (Fund 823) Overview and Required Findings ............................................................................9 Financial Reporting ................................................................................................10 Library Impact Fee (Fund 824) Overview and Required Findings ..........................................................................11 Financial Reporting ................................................................................................12 Park Construction Fee (Fund 806) Overview and Required Findings ..........................................................................13 Financial Reporting ................................................................................................14 Park Land Acquisition Fee (Fund 805) Overview and Required Findings ..........................................................................15 Financial Reporting ................................................................................................16 Public Arts (Fund 827) Overview and Required Findings ..........................................................................17 Financial Reporting ................................................................................................18 Public Safety Impact Fee Fund (Fund 821) Overview and Required Findings ..........................................................................19 Financial Reporting ................................................................................................20 Transportation Impact Fee (Fund 825) Overview and Required Findings ..........................................................................21 Financial Reporting ................................................................................................22 4 Plan Area Impact Fee Programs Oyster Point Interchange Impact Fee Fund (Fund 840) Overview and Required Findings ..........................................................................23 Financial Reporting ................................................................................................25 Park In-Lieu Fee (Funds 206 – 209) Overview and Required Findings ..........................................................................26 Financial Reporting ................................................................................................27 Sewer Impact Fee Fund (Fund 810) Overview and Required Findings ..........................................................................28 Financial Reporting ................................................................................................29 Traffic Impact Fee Fund (Fund 820) Overview and Required Findings ..........................................................................30 Financial Reporting ................................................................................................31 Other Reportable Citywide Charges Sewer Capacity Charge Fund (Fund 730) Overview and Required Findings ..........................................................................32 Financial Reporting ................................................................................................33 Fee Schedules........................................................................................................................34 5 Bicycle and Pedestrian Impact Fee Program The City Council adopted this nexus study for the citywide impact fee program in 2017. The study identified the need to support the Bicycle Master Plan adopted by the City in February 2011 by Resolution 23-2011. The General Plan establishes that maintaining bicycle and pedestrian infrastructure requires funding sources. The Bicycle Master Plan recommends the completion of the City’s existing network of bicycle paths, lanes, and routes. Annual Reporting Information: 1. The purpose of the Bicycle and Pedestrian Impact Fee Program is to establish funding for completion of the City’s existing network of bicycle paths. Additional daily trips due to development projects place more demands on bicycle and pedestrian infrastructures in the city. 2. Refer to page 34 of this report for the fee schedule outlining the amount of the Bicycle and Pedestrian Impact Fee. 3. Refer to page 6 of this report for the beginning and ending balance of the account for the Bicycle and Pedestrian Impact Fee. 4. See page 6 of this report for Bicycle and Pedestrian Impact Fees collected, and interest earned. 5. There were no projects worked on during the Fiscal Year 2020-21 using the Bicycle and Pedestrian Impact Fee funding. 6. The approximate date for funding and execution of projects will be determined, at the discretion of the City Council, when adequate additional funds have accumulated. 7. There were no interfund transfers or loans. 8. There were no potential refunds to property owners. 6 Bicycle and Pedestrian Impact Fee Program (Fund 822) This citywide development impact fee program funds bicycle and pedestrian improvements. Development projects generate additional daily trips that place more demands on bicycle and pedestrian infrastructures in the city. Beginning balance, July 1, 2020 $65,912 Additions Bicycle and pedestrian impact fees collected $50,727 Interest earned 174 Total additions 50,901 Disbursements % Fee Funded Total disbursements 0 Remaining balance as of June 30, 2021 $116,813 Planned projects for Fiscal Year 2021-22 % Fee Funded There are no planned projects for Fiscal Year 2021-22. 0 Remaining balance after planned projects $116,813 7 Childcare Impact Fee Program The City Council adopted the nexus study for this citywide impact fee program in 2001. The study identified the need for new and expanded childcare facilities in the City. Updates since 2001 to this fee program have included a periodic inflation change. 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. 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. Other funding sources may include the City’s General Fund, grants, developer contributions, and Community Development Block Grants. Annual Reporting Information: 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. Refer to page 34 of this report for the fee schedule outlining the amount of the Childcare Impact Fee. 3. Refer to page 8 of this report for the beginning and ending balance of the account for the Childcare Impact Fee. 4. See page 8 of this report for the Childcare Impact Fees that have been collected, and interest earned. 5. There was one project worked on during Fiscal Year 2020-21 using the Childcare Impact Fee funding. 6. The approximate date for funding and constructing future facilities will be determined, at the discretion of the City Council, when adequate additional funds for facility construction have accumulated. 7. There were no interfund transfers or loans. 8. There are no potential refunds to property owners. 8 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, 2020 $6,185,209 Additions Childcare impact fees collected $629,882 Interest earned 12,236 Total additions 642,118 Disbursements % Fee Funded City administration 1,850 100% Projects for Fiscal Year 2020-21 Design and Construction of New Preschool Facility (pf2101) 37,150 100% Total disbursements (39,000) Remaining balance as of June 30, 2021 $6,788,327 Planned projects for Fiscal Year 2021-22 % Fee Funded Additional funding for new preschool facility design and construction (pf2101) 250,000 100% Total Planned Projects (250,000) Projects appropriated from prior Fiscal Years: (5,462,850) Remaining balance after planned projects $1,075,477 9 Commercial Linkage Fee Program The nexus study for this citywide impact fee program was adopted by the City Council in 2018 by Resolution 123-2018. The study justified the need to provide sufficient funding for affordable housing, and established a nexus between the need for affordable housing and the impacts of commercial development within the City. The impact fee program supports the City of South San Francisco’s adopted 2015-2023 Housing Element, which includes the goal of promoting the provision of housing by both the private and public sectors for all income groups in the community. Annual Reporting Information: 1. The purpose of the Commercial Linkage Impact Fee program is to provide funding for affordable housing for employees who work in the City as a result of new commercial development. 2. Refer to page 34 of this report for the fee schedule outlining the amount of the Commercial Linkage Impact Fee. 3. Refer to page 10 of this report for the beginning and ending balance of the account for the Commercial Linkage Impact Fee. 4. See page 10 of this report for the Commercial Linkage Impact Fees that have been collected and interest earned. 5. There were no projects worked on during the Fiscal Year 2020-21 using the Commercial Linkage Impact Fee funding. 6. The approximate date for funding and execution of projects will be determined, at the discretion of the City Council, when adequate additional funds have accumulated. 7. There were no interfund transfers or loans. 8. There were no potential refunds to property owners. 10 Commercial Linkage Impact Fee Program (Fund 823) The Commercial Linkage Fee (CLF) Ordinance (No. 1560-2018) was adopted by the City Council on August 22, 2018, establishing a fee on certain commercial development to generate local funding for affordable housing. Beginning balance, July 1, 2020 $4,957,462 Additions Commercial linkage impact fees collected $5,365,449 Interest earned 10,425 Total additions $5,375,874 Disbursements % Fee Funded Payroll and Supplies and Services $121,710 100% Total disbursements ($121,710) Remaining balance as of June 30, 2021 $10,211,626 Planned projects for Fiscal Year 2020-21 % Fee Funded 428-432 Baden (Baden Station) 4,050,000 100% Predevelopment Loan to Bridge Housing for 158 BMR Units at the PUC Site 2,000,000 100% Total planned projects (6,050,000) Remaining balance after planned projects $4,161,626 11 Library Impact Fee Program The nexus study for this impact fee program was adopted by the City Council in 2020. Ordinance 1608-2020 amended the Municipal Code to include Chapter 8.74 establishing the library impact fee. Based upon the City’s projected population increase and current per capita usage of facilities and collections materials, the City will need approximately 9,900 square feet of additional library space and 32,000 additional materials in circulation in order to maintain the current library service standard. The study identified the need to better implement the goals of maintaining adequate service standards in the face of the increase in library service demands. The study estimates that the total projected cost associated with future residential and non-residential development through 2040 would be approximately $7.8 million. Annual Reporting Information: 1. The Library Impact Fee is collected to provide new development’s share of funding for additional library space and materials to maintain current library service standard. 2. Refer to page 34 of this report for the fee schedule outlining the amount of the fee. 3. Refer to page 12 of this report for the beginning and ending balance for the account of this fee. 4. Refer to page 12 of this report for the Library Impact fees collected and interested earned. 5. There were no projects worked on during the Fiscal Year 2020-21 using the Library Impact Fee. 6. The approximate date for funding and execution of projects will be determined, at the discretion of the City Council, when adequate additional funds have accumulated. 7. There were no interfund transfers or loans. 8. There are no potential refunds to property owners. 12 Library Impact Fee (Fund 824) This citywide development impact fee program funds new development’s fair share for additional library space and materials to maintain current library service standard. Library impact fees for non-residential developments went into effect on November 23, 2020. Library impact fees for residential development will go into effect on January 1, 2022. No library impact fees were collected in fiscal year 2020-21. Beginning balance, July 1, 2020 $0 Additions Library impact fees collected $0 Interest earned 0 Total additions 0 Disbursements % Fee Funded Total disbursements 0 Remaining balance as of June 30, 2021 $0 Planned projects for Fiscal Year 2021-22 % Fee Funded There are no planned projects for Fiscal Year 2021-22 0 Total planned projects 0 Remaining balance after planned projects $0 13 Park Construction Fee The nexus study for this impact fee program was adopted by the City Council in 2017. Ordinance 1520-2016 amended the Municipal Code to include Chapter 8.67 adopting the parkland acquisition fee and park construction fee. The purpose of the Park Construction Fee is to provide funding for the construction of park facilities and improvements. The General Plan, the Parks & Recreation Master Plan, and the East of 101 Area Plan call for 3 acres of parkland and facilities per 1,000 new residents and ½ an acre of parkland and facilities per 1,000 new employees. The City incurs the costs of administering the fee program and preparing analyses and reports related to it. Annual Reporting Information: 1. The purpose of the Park Construction Fee fund is to provide new development’s share of funding developing new parks and recreation spaces at a rate of 3 acres per 1,000 new residents in multifamily development projects and 0.5 acres per 1,000 new employees in commercial development projects. 2. Refer to page 34 of this report for the fee schedule outlining the amount of the fee. 3. Refer to page 14 of this report for the beginning and ending balance for the account of this fee. 4. Refer to page 14 of this report for the Park Construction fees collected and interest earned. 5. There were no projects worked on during the Fiscal Year 2020-21 using the Park Construction Fee. 6. The approximate date for further funding and developing park land and recreation facilities will be determined, at the discretion of the City Council, when adequate additional funds have accumulated. 7. There were no interfund transfers or loans. 8. There are no potential refunds to property owners. 14 Park Construction Fee (Fund 806) This citywide development impact fee program funds new development’s fair share for developing new park and recreation spaces. Beginning balance, July 1, 2020 $2,275,065 Additions Park construction fees collected $3,063,248 Interest earned 6,469 Total additions 3,069,717 Disbursements % Fee Funded Total disbursements 0 Remaining balance as of June 30, 2021 $5,344,782 Planned projects for Fiscal Year 2021-22 % Fee Funded Orange Park Sports Field Renovation (pk1402) 1,000,000 46.50% Total Planned projects (1,000,000) Projects appropriated from prior fiscal years: (98,178) Remaining balance after planned projects $4,246,604 15 Park Land Acquisition Fee The City Council adopted the nexus study for this impact fee program in 2017. Ordinance 1520- 2016 amended the Municipal Code to include Chapter 8.67, adopting the parkland acquisition fee and park construction fee to generate funding for parks in South San Francisco. The General Plan, the Parks + Recreation Master Plan, and the East of 101 Area Plan each lay out specific park requirements. The current need is three acres of park land per one thousand future residents and one half of an acre per one thousand new employees is the current need. This fee differs from the City’s Quimby Act fee in Section 19.24.040 et seq of the Municipal Code. The Quimby Act allows for the imposition of land dedication requirements and in-lieu fees for residential subdivisions. The Act does not apply to other types of residential development projects or commercial development projects. The Park Land Acquisition Fee is applied to residential and non-residential development projects to support the demands for parks and recreation spaces generated by new residents of residential development projects and new employees of non-residential development projects. The nexus study calculated the fee for park land acquisition based on the number of residents generated by each new type of residential unit and the number of employees per 1,000 square feet in non- residential development projects. The City adopted the Park Land Acquisition Fee under the authority of the Mitigation Fee Act. Annual Reporting Information: 1. The purpose of the Park Land Acquisition Fee fund is to provide new development’s share of funding for acquiring new parks and recreation spaces at a rate of 3 acres per 1,000 new residents in multifamily development projects and 0.5 acres per 1,000 new employees in commercial development projects. 2. Refer to page 34 of this report for the fee schedule outlining the amount of the fee. 3. Refer to page 16 of this report for the beginning and ending balance for the account of this fee. 4. Refer to page 16 of this report for the amount of fees collected and interest earned. 5. One project utilized the Park Land Acquisition Fee fund in FY 2020-21. Refer to page 16 of this report for identification of public improvement on which fees were expended, the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with the fees. 6. The approximate date for funding and acquiring park land will be determined, at the discretion of the City Council, when adequate additional funds have accumulated. 7. There were no interfund transfers or loans. 8. There are no potential refunds to property owners. 16 Park Land Acquisition Fee (Fund 805) This citywide development impact fee program funds new development’s fair share for acquiring new park and recreation spaces. Beginning balance, July 1, 2020 $868,732 Additions Park land acquisition fees collected $769,296 Interest earned 1,918 Total additions 771,214 Disbursements % Fee Funded Transit Village Park (pk2101) 36,173 100% Total disbursements (36,173) Remaining balance as of June 30, 2021 $1,603,773 Planned projects for Fiscal Year 2021-22: % Fee Funded There are no planned projects for Fiscal Year 2021/22 0 Projects appropriated from prior fiscal years: (23,827) Remaining balance after planned projects $1,579,946 17 Public Arts In-Lieu Fee In October 2020, the City Council passed ordinance number 1613-2020 creating the public art requirement. The City is dedicated to improving infrastructure, economic development and cultural diversity through acquisition and exhibition of public art. The public art requirement applies to any new non-residential development project and that it requires such projects to contribute public art with a value of at least one percent (1%) the amount of construction costs. In lieu of contributing public art, the public art requirement will allow for the payment of an in-lieu fee into a public art fund at the value of half of one percent (0.5%) of the amount of construction costs. Annual Reporting Information: 1. The Public Arts In-Lieu Fee is collected to provide cultural and artistic art to enhance the quality of life for individuals living in, working in, and visiting the City. 2. Refer to page 34 of this report for the fee schedule outlining the amount of the fee. 3. Refer to page 18 of this report for the beginning and ending balance for the account of this fee. 4. Refer to page 18 of this report for the amount of fees collected and interested earned. 5. There were no projects worked on during the Fiscal Year 2020-21 using the Public Arts In-Lieu Fee. 6. The approximate date for further funding will be determined at the direction of the City Council, when adequate additional funds have accumulated. 7. There were no interfund transfers or loans. 8. There are no potential refunds to property owners. 18 Public Arts In-Lieu Fee (Fund 827) This citywide in-lieu fee funds the cultural diversity through acquisition and exhibition of public art in the City. Beginning balance, July 1, 2020 $0 Additions In-lieu fees collected $0 Interest earned 0 Total additions 0 Disbursements % Fee Funded Total disbursements 0 Remaining balance as of June 30, 2021 $0 Planned projects for Fiscal Year 2021-22 % Fee Funded There are no planned projects for Fiscal Year 2021-22 0 Total planned projects 0 Remaining balance after planned projects $0 19 Public Safety Impact Fee Program The City Council adopted the nexus study for this citywide impact fee program 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. 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. Refer to page 34 of this report for the fee schedule outlining the amount of the fee. 3. Refer to page 20 of this report for the beginning and ending balance for the account of this fee. 4. Refer to page 20 of this report for fees collected and interested earned. 5. One project utilized Public Safety Impact fee fund in FY 2020-21. Refer to page 20 of this report for identification of public improvement on which fees were expended. 6. The approximate date for further funding and constructing facilities and procuring future equipment identified in the nexus study will be determined when adequate additional funds have accumulated. 7. There were no interfund transfers or loans. 8. There are no potential refunds to property owners. 20 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, 2020 $1,396,672 Additions Public Safety impact fees collected – Fire $171,335 Public Safety impact fees collected – Police 72,552 Interest earned 2,580 Total additions 246,467 Disbursements % Fee Funded Purchase of self-contained breathing apparatus and small diameter hose 123,593 100% Transfer out to general fund 17,152 100% Fire Station 64 dorm and bathroom remodel (pf1805) 3,007 24.8% Total disbursements (143,752) Remaining balance as of June 30, 2021 $1,499,387 % Fee Funded Planned projects for Fiscal Year 2021-22 Police OPS & Dispatch Center (pf2208) 1,000,000 100% Lucas Device 29,200 23% CAD Portable tablet 12,400 23% Planned projects for Fiscal Year 2021-22 (1,041,600) Projects appropriated from prior fiscal years: (28,897) Remaining balance after planned projects $428,890 ` 21 Transportation Impact Fee Program The nexus study for this impact fee program was adopted by the City Council in 2020. Ordinance 1607-2020 amended the Municipal Code to include Chapter 8.68 establishing the transportation impact fee. The nexus study identified the need for transportation improvements and facilities needed to serve the growth, and the estimated costs of those improvements and facilities. The nexus study has identified $160.8 million in transportation infrastructure improvements such as roads, sidewalks, traffic lights, bicycle lanes and pathways, curbs and gutters, and medians caused by new developments throughout the City. The City seeks to mitigate these transportation impacts caused by new development and to allow the City to recover approximately $33.7 million in costs associated with the new development by providing for the payment of the citywide Transportation Impact fee. Annual Reporting Information: 1. The Transportation Impact Fee is collected to provide new development’s share of funding for new and expanded transportation capital facility and equipment required at build out of the City. 2. Refer to page 34 of this report for the fee schedule outlining the amount of the fee. 3. Refer to page 22 of this report for the beginning and ending balance for the account of this fee. 4. Refer to page 22 of this report for the Transportation Impact fees collected and interested earned. 5. There were no projects work on during the Fiscal Year 2020-21 using the Transportation Impact Fee. 6. The approximate date for funding and execution of projects will be determined, at the discretion of the City Council, when adequate additional funds have accumulated. 7. There were no interfund transfers or loans. 8. There are no potential refunds to property owners. 22 Transportation Impact Fee (Fund 825) This citywide development impact fee program funds new development’s fair share for transportation improvements and facilities needed to serve the City. Transportation impact fees for non-residential developments went into effect on November 23, 2020. Transportation impact fees for residential development will go into effect on January 1, 2022. Approximately $1.96 million of transportation impact fees were collected in fiscal year 2020-21. Beginning balance, July 1, 2020 $0 Additions Transportation impact fees collected $1,962,094 Interest earned 249 Total additions 1,962,343 Disbursements % Fee Funded Total disbursements 0 Remaining balance as of June 30, 2021 $1,962,343 Planned projects for Fiscal Year 2021-22 % Fee Funded There are no planned projects for Fiscal Year 2021-22 0 Total planned projects 0 Remaining balance after planned projects $1,962,343 23 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 inflation adjustment. 2. June 26, 1996, fee program changes via Resolution No. 102-96 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 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 ongoing. Required 5-Year Findings for Unexpended Funds/Annual Reporting Requirements 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. Refer to page 25 of this report for the beginning and ending balance of the account for this fee. 3. Refer to page 25 of this report for fees collected and interest earned. 4. The reasonable relationship between the Oyster Point interchange impact fee and the purpose for which it is charged is demonstrated in the 1983 Feasibility Study by Nolte and Associates, and in the fee program updates in Resolution No. 102-96 and Resolution No. 152-96. As of June 30, 2021, there continues to be a need for Oyster Point Interchange Impact fees due to further developments in that area of South San Francisco. 24 5. The sources and amounts of funding anticipated for Oyster Point Interchange projects can be found in the updates adopted via Resolution No. 102-96 and Resolution No. 152-96. Additional working relating to property transfers and gaining final Caltrans project acceptance is ongoing. 6. Buildout in the Oyster Point Interchange area is ongoing due to further developments in South San Francisco. The City’s buildout is assumed to occur over a 20-year period, which is consistent with the General Plan. 7. There are currently no planned projects for Oyster Point Interchange impact fees. 8. The fund has one loan from the former Redevelopment Agency. Please refer to page 23 of this report. The amount owed as of June 30, 2021, is approximately $3.6 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. Given that the amount of future impact fee revenue is unknown, the repayment date is unknown. There were no other interfund transfers or loans. 9. There are no potential refunds of Oyster Point Interchange Impact Fees to property owners. 10. Refer to page 34 of this report for the fee schedule outlining the amount of the Oyster Point Interchange Impact Fee. 25 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, 2020 $78,634 Additions Fees collected $75 Interest earned 0 Total additions 75 Disbursements % Fee Funded Repayment of RDA Loan 40,000 100% Total disbursements (40,000) Remaining balance as of June 30, 2021 $38,709 Planned Projects for Fiscal Year 2021-22 % Fee Funded There are no planned projects for Fiscal Year 2021-22. 0 Remaining Balance After Planned Projects $38,709 Loans to Oyster Point Interchange Fee Fund from Successor Agency to RDA Due Date and Interest Rate Balance, July 1, 2020 3,635,152 None & 0% Less payment during fiscal year 40,000 Balance, June 30, 2021 (3,595,152) Fees available (future fees required) for current and completed projects ($3,556,443) 26 Park In-Lieu Fee City of South San Francisco Municipal Code, Title 19 Subdivisions, Chapter 19.24 Improvements requires every subdivider who subdivides land to dedicate a portion of such land, pay a fee, or do both, for the purpose of providing park and recreational facilities to serve future residents of such subdivision. The in-lieu fee shall be determined using the formula set out in Chapter 19.24.090(a). [Units in Structure X Average Residents per Unit X 0.003 (3 acres per 1,000 Residents) X Average Fair Market Value per acre = in-lieu fee]. Fees shall be adjusted annually in accordance with the All Urban Consumers, San Francisco-Oakland-San Jose (AUC-CPI); such annual adjustment shall be approved by resolution of the City Council. In addition, the City may collect reasonable administrative fee to cover the cost of administering the program. Annual Reporting Information 1. The purpose of the Park in-lieu fee is to acquire land and develop new parks and recreation facilities, or for the rehabilitation and enhancement of existing neighborhood parks, community parks, and recreational facilities. 2. Refer to page 34 of this report for the fee schedule outlining the amount of the fee. 3. Refer to page 27 of this report for the beginning and ending balance of the account for this fee. 4. Refer to page 27 of this report for fees collected, and interest earned. 5. There were two projects worked on in FY 2020-21 using the Park In-Lieu Fee. 6. The approximate date for further funding will be determined at the direction of the City Council, when adequate additional funds have accumulated. 7. There were no interfund transfers or loans. 8. There are no potential refunds of Park In-Lieu Fees to property owners. 27 Park In-Lieu Fee (Funds 206 – 209) The Park In-Lieu fee may only be used for acquiring land and developing new park and recreation facilities, or for the rehabilitation and enhancement of existing neighborhood parks, community parks, and recreational facilities. Beginning balance, July 1, 2020 $4,838,734 Additions Fees collected $0 Interest earned 8,479 Total additions 8,479 Disbursements % Fee Funded Special Program Expenditure 500,000 43% Orange Park Sports Field Renovation (pk1402) 323,481 53% Orange Park Aquatic Center (pf1806) 172,829 100% Total Disbursements (996,310) Remaining balance as of June 30,2021 $3,850,903 Planned Projects for Fiscal Year 2021/22 % Fee Funded There are no planned projects for Fiscal Year 2021/22 0 0 Projects appropriated from prior fiscal years (836,469) Remaining Balance After Planned Projects $3,014,434 28 Sewer Impact Fee Program The 2002 nexus study for this fee was adopted by the 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 of South San Francisco. 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. 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. Refer to page 34 of this report for the fee schedule outlining the amount of the fee. 3. Refer to page 29 of this report for the beginning and ending balance of the account for this fee. 4. Refer to page 29 of this report for the fees collected, and interest earned. 5. There was one project worked on in FY 2020-21 using the Sewer Impact Fee. 6. The approximate date for further funding will be determined at the direction of the City Council, when adequate additional funds have accumulated. 7. There were no interfund transfers or loans. 8. There are no potential refunds of Sewer Impact Fees to property owners. 29 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, 2020 $5,407,840 Additions Fees collected $443,483 Interest earned 8,886 Total additions 452,369 Disbursements % Fee Funded City administration 1,850 100% Pump Station #2 Upgrade (ss1702) 1,714,080 42% Total Disbursements (1,715,930) Remaining balance as of June 30, 2021 $4,144,279 Planned Projects for Fiscal Year 2021/22 % Fee Funded There are no planned projects for Fiscal Year 2021/22 0 0 Projects appropriated from prior fiscal years (4,972,390) Remaining Balance After Planned Projects ($828,111) 30 Traffic Impact Fee Program The 2001 nexus study for this plan area fee was adopted by the 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 of South San Francisco. 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. Annual Reporting Information 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. See page 34 of this report for the fee schedule outlining the amount of the fee. 3. See page 31 of this report for beginning and ending balance of the account for this fee. 4. See page 31 of this report for the fees collected and interest earned. 5 There were multiple projects that were either partially or wholly funded in FY 2020-21. 6 The approximate date for further funding will be determined at the direction of the City Council, when adequate additional funds have accumulated. 7 There were no interfund transfers or loans. 8 There are no potential refunds of Traffic Impact Fees to property owners. 31 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 of South San Francisco. Beginning balance, July 1, 2020 $25,015,746 Additions: Fees Collected $ - Interest Earned 44,230 Total additions 44,230 Disbursements % Fee Funded City administration 1,850 100% Caltrain Station to E. Grand Bike Gap Closure (st2003) 52,880 80% South Airport Blvd. Improvements (st2004) 120,849 100% Traffic Impact Fees Study (tr1013) 16,440 100% E. Grand, Gateway & Forbes Intersection (tr1602) 191,834 100% Grand Avenue Streetscape (st1801) 32,290 92% Adaptive Traffic Control System (tr1901) 406,252 100% E.101 Traffic Signal IDEA Grant (tr1902) 38,996 24% Hillside and Lincoln Traffic Signal (tr1906) 129,126 95% Utah & Harbor Intersection Improvement (tr2101) 72,372 100% DNA Way & Allerton Avenue at East Grand signal (tr2102) 15,093 100% South Airport Blvd Bridge Replacement (st1301) 1,500,000 14% N. Access Rd. Bike + Ped Improvements (st1806) (45,973) 4% Total disbursements (2,532,009) Remaining Balance as of June 30, 2021 $22,527,967 Planned Projects for Fiscal Year 2021/22 % Fee Funded Colma Creek Oak Ave Ped Bridge (sd2202) 250,000 100% E of 101 Transit Shelter & Bulb Turnout-MTC (tr2203) 55,056 100% Traffic Impact Fee Study (tr1013) (245,243) 76% Station to East Grand Bike Gap Closure (st2003) 300,000 80% South Airport Blvd Improvement (st2004) 538,000 100% US-101 Produce Ave Interchange (tr1404) 3,250,000 46% Oyster Pt & E Grand Corridor Improvement (tr1602) (5,100,00) 100% E of 101 Traffic Model Update (tr1702) (116,888) 100% DNA Way & Allerton Avenue at East Grand signal (tr2102) 350,000 100% Total planned projects (719,075) Total projects appropriated from prior fiscal years: (20,498,436) Remaining balance after planned projects $1,310,456 32 Sewer Capacity Charge Program The original analysis was adopted by the 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 the 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 of South San Francisco. There are two components to the Sewer Capacity Charge: the capital assets valuation charge and the capital improvements charge. The capital assets charge accounts for the existing value of the sewer collection and treatment system which is calculated using the depreciated replacement cost of the system’s assets. The capital assets charge (also called a “buy-in” fee) assigns a value to the benefit that new development receives from the availability of sewer capacity (which existing development has maintained over the years through the sewer rates). The total depreciated replacement value is $161.6 million, of which 37.2 percent is new development’s fair-share, or $60.1 million. The second component is the charge for future improvements to the system identified in the City’s Capital Improvement Program. The total cost of these future improvements is $84.6 million, the fair-share allocation to new development is 37.2 percent of that amount, or $29.8 million. The total fair-share is $90 million. These funds may be used for capital improvements to maintain capacity in the system. Annual Reporting Information: 1. Refer to page 33 of this report for the beginning and ending balance of the account for the sewer capacity fund, the amount of charges collected, and the interest earned from investment of moneys in the fund. 2. There is one project that was worked on in FY 2020-21 using the sewer capacity charge program. Refer to page 33 of this report for an identification of the public improvement on which charges were expended, the amount of the expenditures on each improvement. 3. Refer to page 33 of this report for an identification of public improvements anticipated to be undertaken in the next fiscal year. 4. The sewer capacity charges do not exceed the estimated reasonable costs of providing the facilities for which the fee is charged (see Cal. Gov. Code § 66013, subd. (a)). 5. The sewer capacity charge’s 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 Cal. Gov. Code §§ 66013, subds. (c) and (d)). 6. There were not any interfund transfers or loans. 33 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, 2020 $8,149,748 Additions Fees collected $1,900,697 Interest earned 15,653 Total additions 1,916,350 Disbursements % Fee Funded City administration 1,850 100% Pump Station #2 upgrades (ss1702) 2,338,119 42% Total disbursements (2,339,969) Remaining Balance as of June 30, 2021 $7,726,129 Planned Projects for Fiscal Year 2021-22 % Fee Funded There are no planned projects for Fiscal Year 2021-22 0 0 Projects appropriated from previous Fiscal Years (1,456,664) Remaining balance after planned projects $6,269,465 34 Bicycle and Pedestrian Impact Fee for Fiscal Year 2020-21 Land Use Cost per Unit or 1,000 Square Feet (SQFT) Residential Single-Family $243 per unit Multi-Family $170 per unit Mobile Home $127 per unit Commercial/Industrial Commercial / Retail $.36 per SQFT Hotel / Visitor Services $.24 / visitor SF Office / R&D $.09 per SQFT Industrial $.12 per SQFT Commercial Linkage Impact Fee Rates for Fiscal Year 2020-21 Gross Square Feet Commercial Floor Area Minus Existing Floor Area × Current Fee Amount for Applicable Land use Category where the Land Use Fee is: $5.26 per sf for hotel $2.63 per sf for restaurant and retail $15.77 per sf for office and R&D Library Impact Fee Rates for Fiscal Year 2020-21 Land Use Cost per Unit or 1,000 Square Feet (SQFT) Commercial/Industrial Commercial / Retail $.07 per SQFT Hotel / Visitor Services $.03 / visitor SF Office / R&D $.12 per SQFT Industrial $.04 per SQFT Childcare Impact Fee Rates for Fiscal Year 2020-21 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 35 Park In-Lieu Fee for Fiscal Year 2020-21 The Park In-Lieu Fee shall be determined using the formula set out in Chapter 19.24.090(a). [Units in Structure X Average Residents per Unit X 0.003 (3 acres per 1,000 Residents) X Average Fair Market Value per acre = in-lieu fee] Park Land Acquisition Fee for Fiscal Year 2020-21 Land Use per Unit or 1,000 Square Feet (SQFT) Residential Single-Family $2,976 per unit Duplex to Four-plex $2,571 per unit 5 to 19 $2,183 per unit 20 to 49 $1,759 per unit 50+ $1,535 per unit Mobile Home $2,286 per unit Commercial/Industrial Commercial / Retail $938 per 1,000 SQFT Hotel / Visitor Services $893 per 1,000 SQFT Office / R&D $833 per 1,000 SQFT Industrial $394 per 1,000 SQFT Park Construction Fee for Fiscal Year 2020-21 Land Use per Unit or 1,000 Square Feet (SQFT) Residential Single-Family $26,148 per unit Duplex to Four-plex $22,586 per unit 5 to 19 $19,175 per unit 20 to 49 $15,462 per unit 50+ $13,491 per unit Mobile Home $20,085 per unit Commercial/Industrial Commercial / Retail $3,158per 1,000 SQFT Hotel / Visitor Services $3,006per 1,000 SQFT Office / R&D $2,957 per 1,000 SQFT Industrial $1,398 per 1,000 SQFT Public Arts In-Lieu Fees Fiscal Year 2020-21 Every non-residential development project shall provide qualifying public art with a value equal to not less than 1% of construction costs for acquisition and installation of public art on the development site. A non-residential development project may elect to make a public art contribution payment in an amount not less than 0.5% of construction costs into the public art fund, in lieu of acquisition and installation of public art on the development project site. 36 Public Safety Impact Fee Rates for Fiscal Year 2020-21 Land Use per Unit or per Square Foot (SF) Residential Low Density $1,387 per unit Medium Density $1,214 per unit High Density $1,033 per unit Commercial/Industrial Commercial / Retail $0.44 per SF Hotel / Visitor $0.26 per SF Office / R&D $1.10 per SF Industrial $0.40 per SF Transportation Impact Fee for Fiscal Year 2020-21 Land Use per Unit or 1,000 Square Feet (SQFT) Commercial/Industrial Commercial / Retail Office/ R&D Industrial $25.42/ SQFT $29.15. SQFT $13.15/ SQFT Hotel $2,450/ room Oyster Point Interchange Impact Fee Rates for Fiscal Year 2020-21 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 monthly increases. The CCI for April 2018 and 2019 were 12,014.72 and 12,322.23, respectively, resulting in a percentage increase of 2.56%. 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 OPI Impact Fee: = (Development Area, SF /1000 SF) X ($154.00) X (Monthly ENR-CCI) / (6,552.16) 37 Sewer Impact Fee Rates for Fiscal Year 2020-21 The generation rate for all land use is 400 gallons per day per 1,000 square feet of building area. New Sewer Impact Fee = ($5.05/Gallon) X (1.0402) = ($5.26/Gallon) Traffic Impact Fee Rates for Fiscal Year 2020-21 Area of Building x Land Use Fee where the Land Use Fee is: R&D/office = $6.46 per building sq. ft. Hotel = $1,501.28 per room Commercial/retail = $26.75 per building sq. ft. Sewer Capacity Charge for Fiscal Year 2020-21 The fee is updated each calendar year. The fee is currently $5,088.64 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.