AgdaPkt 2016-04-11 Closed and Joint SA PFA

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REPORT To the Honorable Mayor and City Council From the City Manager April 11 , 2016 SUBJECT Annual AB 1600 Parks Impact Fee Report for Fiscal Year ending June 30, 2015 RECOMMENDATION By motion, receive the Parks Impact Fee Report, as incorporated in this Staff Report, pursuant to the Mitigation Fee Act BACKGROUND Cities and counties often charge fees on new development to fund public improvements to mitigate the impact of development activity. These fees are commonly known as development impact fees and are generally collected at the time building permits are issued for residential and commercial construction. Impact fees are established by ordinance and, as required by law, these fees are segregated from the General Fund and accounted for in special revenue funds. The Parks Impact Fee is a specific type of development fee which applies to residential projects. In 1989, the State Legislature passed Assembly Bill 1600 (AB1600), which added Sections 66000 et seq. to the California Government Code, commonly known as the Mitigation Fee Act. Under AB 1600, the City is required to make a report to the public on development impact fees. ANALYSIS On October 22, 2007, the City Council enacted the Parks Impact Fee Ordinance (Article XVI of Chapter 18 of the Municipal Code) establishing the Parks Impact Fee. The ordinance specified that the “fees established pursuant to this Article are development fees covered by the Mitigation Fee Act.” These fees are intended to augment recreational opportunities through the improvement of parks in order to compensate for increased demand for City facilities and services brought about by new development and the associated increase in population. Per Section 66006(b)(1) of the California Government Code, the annual report must include the following information: 1. A brief description of the type of development impact fee in the account/fund; 2. The amount of the fee; 6.1.A. - Page 1