AgdaPkt 2018-01-22 Joint SA PFA - Laserfiche WebLink

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7.A. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager January 22, 2018 SUBJECT Annual AB 1600 Development Impact Fees Report for Fiscal Year ending June 30, 2017 RECOMMENDATION Adopt a resolution accepting the annual report on receipt and use of impact fees for the year ending June 30, 2017 and making findings as required by 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 City has three development impact fees: the Transportation Impact Fee, the Parks Impact Fee and the Affordable Housing Impact Fee (in order of adoption). 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 provide a public report regarding development impact fees within 180 days after the end of the fiscal year. Additional details about the funds collected and projects funded by impact fees will be provided with the Five -Year Capital Improvement Program study session later this year. ANALYSIS The first development fee, the Transportation Impact Fee, was adopted by the City Council by ordinance on April 24, 2000 adding Article XV (commencing with section 18.244) to Chapter 18 of the Municipal Code of Redwood City relating to transportation impact fees for new development. These fees fund construction of capital facilities and traffic reduction measures to alleviate and/or mitigate the impact of increased traffic resulting from new residential and non-residential development. Transportation impact fees ensure that new development projects, if they increase traffic, bear a proportionate share of the cost of facilities and