CITY OF ANGELS

CITY COUNCIL

Resolution #2003-

Establishing and Adopting City Services Impact Mitigation Fees

WHEREAS Government Code Section 66001 et seq. establishes the criteria for imposing impact mitigation fees and those criteria have been met as follows; and

WHEREAS, the purpose of the proposed impact fees is to prevent deterioration in the quality of public services to residents and businesses in the City of Angels as a result of new development by requiring new development to bear a portion of the cost of additional capital assets needed to meet its service needs; and

WHEREAS, revenue from these impact fees will be used to construct facilities and acquire other capital assets needed to serve additional development in the city as identified in the City 2003 Impact Fee Study prepared by MAXIMUS, Inc.   Revenue from park and police impact fees will be used to expand existing facilities or to construct new facilities.   Revenue from fire impact fees may be used to help repay debt issued to acquire the building housing Fire Station No. 2 and/or to acquire firefighting apparatus and equipment; and

WHEREAS, based on the analysis presented in the 2003 Impact Fee Study prepared by MAXIMUS, Inc., the City of Angels finds that there is a reasonable relationship between:

A.            The use of the fee and the development type on which it is imposed, in that fees are proportional to the impacts of development and will be used only to pay for facilities needed to serve new development

B.            The need for the facility and the type of development on which the fee is imposed, in that the fee calculations are based on the demand for capital facilities created by new development; and

C.            The amount of the fee and the facility cost attributable to the development project, in that the fees are calculated by allocating facility costs in proportion to the impacts created by new development; and

WHEREAS the City of Angels City Services Impact Mitigation Fees are consistent with the City of Angels General Plan,

NOW, THEREFORE, BE IT RESOLVED that the City Council of The City of Angels does hereby establish and adopt the following city services impact mitigation fees:

/a/ Fee in lieu of park land dedication for Subdivisions (Quimby Fees) are adopted under a separate resolution

/b/ Excludes subdivisions covered by previous development agreement (e.g., Greenhorn Creek)

1.         Annual Fee Adjustment.   Impact mitigation fees shall be adjusted annually based on the California Construction Cost Index (a.k.a. Engineering News Record Building Cost Index).

2.         Fee collection.   The timing of fees collected pursuant to this resolution shall be in accordance with Government Code Section 66007.

3.            Exemptions.   In the event that a development project is found to have no impact on facilities for which these impact fees are being charged, such project shall be exempted from one or more of these fees, as applicable.     Provisions for applying credits for existing development are detailed in paragraph 5.

4.         Credit for Improvements by Developers/In-Lieu    If the city requires a developer, as a condition of project approval, to construct facilities or improvements for which impact fees will be charged, the impact fee imposed on that development project for that type of facility shall be adjusted to reflect a credit for the cost of the facilities or improvements constructed by the developer.  If reimbursement would exceed the amount of the fee to be paid by the development for that type of facility, the City may seek to negotiate a reimbursement agreement with the developer.  

In the event a developer offers to dedicate land or construct improvements in lieu of paying impact fees, the City has the discretion to accept or reject such offers.  If impact fee credits provided in exchange for such consideration would exceed the amount of the fees that would otherwise have been imposed on such developer(s), then the City may execute a reimbursement agreement to that the excess credits are not paid until impact fees are collected from other benefiting development(s).

5.         Credit for Existing Development.  If a project involves replacement, redevelopment or intensification of previously existing development, then impact fees shall be applied only to that portion of the project which represents a net increase in demand for City facilities, as measured by the demand variables used in the 2003 Impact Fee Study prepared by MAXIMUS, Inc.     For residential development, additions to existing single-family dwellings which do not result in a net increase in the number of dwelling units, are exempt from these impact fees.    Additions or expansions of existing commercial or industrial developments shall be charged impact fees based on the net increase in square footage of the facility.

6.                  Separate Accounts.     Fees shall be deposited into a separate parks account, fire facilities account and police facilities account.   Alternatively, fees collected pursuant to this resolution may be deposited in separate capital facilities accounts or funds as necessary to avoid commingling of the fees with other revenues and funds, except for temporary investments.  Fees shall be expended solely for the purpose for which they were collected.  Interest earned on fee revenues shall be placed in the capital account and used for the same purpose.

7.                  Reporting.   Once each year, within 180 days of the close of the fiscal year, the city shall make available to the public the following information for each separate account established to receive impact fee revenues as provided in Government Code Section 66006:

a.      The amount of the fee;

b.      The beginning and ending balance of the account or fund

c.      The amount of fees collected and interest earned;

d.      Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the percentage of the cost of the public improvement that was funded with fees;

e.      Identification of the approximate date by which the construction of a public improvement will commence, if the  City determines that sufficient funds have been collected to complete financing of an incomplete public improvement;

f.        A description of each inter-fund transfer or loan made from the account or fund, including interest rates, repayment dates, and a description of the improvement on which the transfer or loan will be expended;

g.      The amount of any refunds or allocations made pursuant to Government Code Section 66001 paragraphs (e) and (f).

8.                  5-Year Report and Findings.  For the fifth fiscal year following the first deposit of any impact fee revenue pursuant to this resolution, and every five years thereafter, the city shall make all of the following findings for any fee revenue that remains unexpended, whether committed or uncommitted:

a.      Identify the purpose to which the fee will be put;

b.   Demonstrate the reasonable relationship between the fee and the purpose for which it is charged;

c.   Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements  for which impact fees are to be used;

d.   Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited into the appropriate account or fund.

These findings shall be made in conjunction with the annual reporting requirements contained in paragraph 7.  

9.            Refunds.    Once the city determines that sufficient funds have been collected to complete an incomplete improvement for which impact fees revenues are to be used, it shall, within 180 day of that determination, identify an approximate date by which construction of the public improvement will be commenced.    If the city fails to comply with this requirement, is shall refund impact fee revenue in the account according to procedures established in Government Code Section 66001 et seq.

10.            Effective Date.   These fees shall become effective 60 days following passage of this             resolution.   

PASSED AND ADOPTED this 1st day of  July, 2003 by the following vote:

AYES:             Ponte, Middleton, Seaton, Raggio

NOES:             None

ABSTAIN:            None

ABSENT:            Hutchinson

                                                                                                Mayor

ATTEST:

City Clerk