Title
Adopt a Resolution to:
a. Retroactively approve a report on the status of development traffic impact fees for the fiscal year ending June 30, 2024; and
b. Retroactively adopt findings, in accordance with Government Code section 66000 et seq., that the need for the improvements for which the fees are being collected still exists, and as such, the funds will be retained.
Body
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a Resolution to:
a. Retroactively approve a report on the status of development traffic impact fees for the fiscal year ending June 30, 2024; and
b. Retroactively adopt findings, in accordance with Government Code section 66000 et seq., that the need for the improvements for which the fees are being collected still exists, and as such, the funds will be retained.
SUMMARY:
The County of Monterey collects traffic impact fees (“TIFs”) from development projects that represent the projects’ fair share towards specific road improvement projects in the immediate area of the development. This report provides an update on various TIFs throughout unincorporated Monterey County, including the Carmel Valley Traffic Mitigation Fee (“CVTMF”) Master Plan, where 10 projects have been identified as eligible for TIF funding. As of June 30, 2024, the ending balances for TIF funds are as follows: CVTMF: $3,224,928; East Garrison TIF: $401,851; and all other Countywide TIFs: $5,484,356. Additional details for each TIF fund are included in the attached exhibits to the draft Resolution.
DISCUSSION:
The fee mitigation act requires agencies to provide an annual report on the status of development traffic impact fees within 180 days after the fiscal year ends. The deadline for fiscal year 2024 was December 31st, 2024. However, due to difficulties in reconciling fund balances between fiscal year 2024 and the previous year, the report was not submitted by staff within the specified deadline. Therefore, this retroactive report is required to comply with the fee mitigation act (AB 1600) for fiscal year 2024.
Government Code sections 66001 and 66006 (AB 1600) delineate certain accounting and reporting requirements with respect to development impact fees collected by the County. The fees, for accounting purposes, must be segregated from the general funds of the County and from other funds or accounts containing fees collected for other improvements. Interest on each development fee fund must be credited to that fund and used only for the purposes for which the fees were collected. Pursuant to Government Code section 66006, the agency that collected the fees must make available to the public the following information regarding each fund or account:
1. Brief description of the type of fee in the fund;
2. Amount of the fee;
3. Beginning and ending balance for the fiscal year;
4. Amount of fees collected and interest earned;
5. Identification of each public improvement on which fees were expended and the amount of the expenditure on each improvement, including the total percentage of the cost of the public improvement that was funded with fees;
6. Identification of an approximate date by which the construction of a public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement fund;
7. An identification of each public improvement identified in a previous report and whether construction began on the approximate date noted in the previous report.
8. For a project identified for which construction did not commence by the approximate date provided in the previous report, the reason for the delay and a revised approximate date that the local agency will commence construction.
9. Description of each inter-fund transfer or loan made from the account or fund, including the public improvement on which the loaned funds will be expended, and in the case of an inter-fund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan; and
10. Amount of any refunds made due to inability to expend fees within the required time frame.
Pursuant to Government Code section 66001, development projects for which fees have been collected for more than five years are required to make findings with respect to any portion of the fee remaining unexpended, whether committed or uncommitted. Staff has provided a draft Resolution that addresses the following findings in Exhibit 2 of the Resolution:
1. Identify the purpose of the fee;
2. Identify the use to which the fee is to be put;
3. Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fees is imposed.
4. Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.
Exhibit 1 to the draft Resolution is a list of the projects and associated accounting of development impact fees by project and for fiscal year ending June 30, 2023 through June 30, 2024. Exhibit 2 is a listing of the projects for which fees have been collected for more than five years.
OTHER AGENCY INVOLVEMENT:
Submitting this report to the Board of Supervisors with a recommendation regarding findings required pursuant to Government Code sections 66001 and 66006 assures that the County has complied with state law. These fees are collected to address fair share costs associated with impacts to infrastructure resulting from development. The fees collected are designated to be used for improvements identified by traffic studies conducted in conjunction with development projects or by regional studies that establish the basis for a fee plan. The Office of County Counsel has reviewed the proposed resolution as to form.
FINANCING:
The Public Works, Facilities, and Parks Department (PWFP) has collected pro-rata fair share development fees. Exhibit 1 summarizes the traffic impact fees received by project location and fiscal year ending June 30, 2024.
For the CVTMF fund, the fund balance is $3,224,928. For the East Garrison TIF fund, the fund balance is $401,851. For all other Countywide traffic impact fees, the TIF fund balance is $5,484,356.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
The office of the County Council has reviewed the recommendation as to form. Submitting this report to the Board of Supervisors with a recommendation regarding findings required pursuant to Government Code sections 66001 and 66006 assures that the County has complied with state law. HCD - Engineering Services staff coordinated with PWFP on this report.
__Well-Being and Quality of Life
_X_Sustainable Infrastructure for Present and Future
_X_Safe Resilient Communities
__ Diverse and Thriving Economy
Prepared by: Armando Fernandez, Senior Civil Engineer, HCD-Engineering Services
Reviewed by: Joshua Bowling, CBO, CCEO, Chief of Building Services, HCD
Reviewed by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities and Parks
Approved by: Craig Spencer, ACIP, Director of Housing and Community Development
The following attachments are on file with the Clerk of the Board:
Attachment A - Resolution, including
- Exhibit 1 - Summary of Impact Traffic Fees
- Exhibit 2 - Five-Year Report