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Home My WebLink AboutR-11469 accepting the 2022-23 Annual Report on Development Impact Fees (AB1600) and make findings related to impact fees held longer than five yearsR 11469 RESOLUTION NO. 11469 (2024 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE 2022-23 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES AND MAKING FINDINGS RELATED TO IMPACT FEES HELD LONGER THAN FIVE YEARS WHEREAS, the City of San Luis Obispo (“City”) has an established Development Impact Fee program and collects applicable impact fees pursuant to Municipal Code 4.56; and WHEREAS, the documents reflecting the balance in each development impact fee fund or account, accrued interest in said fund or account, and the amount of expenditure by public facility for the fiscal year have been made available for public review as required by California Government Code section 66006; and WHEREAS, the City is required to make certain findings every five years with respect to the unexpended fund balance of certain development impact fee funds pursuant to California Government Code section 66001; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. All the above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Acceptance. The 2022-23 Annual Report on Development Impact Fees is hereby accepted. SECTION 3. Findings. The following findings are made as required under Government Code section 66001 for the impact fees collected and held more than five years: a) For the Margarita Area Specific Plan Park Impact Fee Fund, as of June 30, 2023, there is $2,817,860.18 1 in revenue collected that has been held more than five years. These funds are intended to be used for pre-construction activities (design, planning, permitting, etc.) and overall construction costs to develop an 18.35-acre community park within the boundaries of the Margarita Area Specific Plan which will be for use by residents in the Margarita Area Specific Plan neighborhoods as well as the entire San Luis Obispo community. 1 $1,504,676.08 is in form of loan receivable attributed to FY 2018-19 in relation to an outstanding interfund loan. DocuSign Envelope ID: CB39E119-57B1-43AB-AE0C-BEEAB38CA91E Resolution No. 11469 (2024 Series) Page 2 R 11469 The Margarita Area Specific Plan, established in 2005, specifically identifies the need for a park in the area and Chapter 9 of the Margarita Area Specific Plan identifies the impact fees as a source of funding for the required park. The use of these funds for a park in the Margarita Area is in conformance with the Margarita Area Specific Plan and the Parks & Recreation Blueprint for the Future: 2021-2041 (General Plan Element) and allows the City to meet the need for a community park that includes sport/athletic fields, sport courts, playground amenities, public art, and social gathering area(s). The Margarita Area Specific Plan was amended in 2012 to adjust the equitable sharing of the cost of the purchase and construction of the 9.9-acre Damon-Garcia Sports Fields, which is satisfying a portion of the park needs in the Margarita Area. Construction of this Park requires funding for both the land and the improvements. A developer previously dedicated 9.9 acres of the required parkland, which has since been developed as the Damon-Garcia sports fields and is currently in use as referenced above. The City is to dedicate the remaining 8.45 acres. Original planned park improvements were originally contemplated to be solely funded by MASP Park Impact Fees at an estimated cost of $2,323,500. However, due to increases in estimated project costs and the retirement of the MASP Park Impact Fee, the City is currently working to identify additional sources and amounts of funding to cover the increased cost of this project. It is intended that the remaining balance (inclusive of interfund loan receivable) in the MASP Park Impact Fee fund of $3,193,310 will be used in the acquisition and development of the remaining required park. In addition, the City anticipates using additional funding from Citywide Park Improvement Impact Fees and Quimby In-Lieu fees as well as General Fund sources (LRM Measure G) and/or future grants to fund the remainder of the costs of this project. Timing for commencement of construction and completion of this project is dependent upon future development of property within the Margarita Area Specific Plan, as well as accumulation of sufficient funding sources. The chart below reflects the overall funding sources and amount anticipated to cover the costs of the future park project in the Margarita Area. DocuSign Envelope ID: CB39E119-57B1-43AB-AE0C-BEEAB38CA91E Resolution No. 11469 (2024 Series) Page 3 R 11469 b) For the Airport Area Transportation Impact Fee Fund, as of June 30, 2023, there is $608,016.68 in revenue collected which has been held more than five years. The fund balance is to be used for pre-construction activities (design, planning, permitting, etc.) for two transportation improvement projects programmed in the AASP TIF program: Tank Farm Road Widening (includes the Tank Farm/Santa Fe Roundabout) and Santa Fe Road Extension. Specifically, these funds will be used to reimburse the developer of the 600 Tank Farm development for eligible costs related to these transportation improvements. As required conditions of approval, the 600 Tank Farm developer is required to design and construct portions of the Tank Farm Road Widening and Santa Fe Road Extension improvements prior to this development. As documented in detail in the AASP and related EIR, the Tank Farm Widening and Santa Fe Road Extension projects represent transportation infrastructure that is needed to mitigate the impacts of new development within the city, particularly within the AASP boundaries. The initial proportionality and nexus to new development is described in further detail in the AASP (Chapter 8, Public Facilities Financing Plan). Below is list of Projects in which these funds will be used and the anticipated amount of funding from all sources needed to complete the financing of these projects. The Tank Farm Road Widening and Santa Fe Road Extension projects are large, complex transportation improvements that are anticipated to be constructed in phases over several years as incremental development occurs. For the Tank Farm Road Widening Project, funding for component of project including Tank Farm Road/Santa Fe Roundabout expected by 2025. Funding for remaining project components anticipated within 10 years (by 2033). For the Santa Fe Road Extension (North) Project, funding for component of project to be constructed by 600 Tank Farm development (approximately 40% of planned road extension) expected by 2025. Funding for remaining project components anticipated within 10 years (by 2033). For the Santa Fe Road Extension (South) funding anticipated within 10 years (by 2033). DocuSign Envelope ID: CB39E119-57B1-43AB-AE0C-BEEAB38CA91E Resolution No. 11469 (2024 Series) Page 4 R 11469 The portions of these projects to be implemented by the 600 Tank Farm development are anticipated to constructed in 2025. The direct developer contribution and local funds related to these improvements are fully funded. The portion of these project costs from development impact fees are partially funded, with $608,016 to be applied from existing AASP TIF fund balance, and the remainder to be reimbursed to the developer from future transportation impact fee revenues—both from the 600 Tank Farm development itself and from revenues received from other developments benefitting from these improvements. Upon motion of Council Member Shoresman, seconded by Vice Mayor Pease, and on the following roll call vote: AYES: Council Member Francis, Marx, Shoresman, Vice Mayor Pease, and Mayor Stewart NOES: None ABSENT: None The foregoing resolution was adopted this 23rd day of January 2024. ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk DocuSign Envelope ID: CB39E119-57B1-43AB-AE0C-BEEAB38CA91E 1/24/2024 | 10:11 AM PST