City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0284
REQUEST FOR CITY COUNCIL ACTION
DATE: 04/06/2022
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
SUBJECT:
Resolution adopting the Local Traffic Facilities Development Impact Fee for street improvements on Courtney Street and portions of Nelson Street, Howe Street, and Duncan Way and authorizing the City Manager to release public improvement liens upon payment of the Local Traffic Facilities Development Impact Fee.
EXECUTIVE SUMMARY:
On June 17, 2020, the City Council adopted a fee study supporting imposition of a development impact fee to fund street improvements on Courtney Street and portions of Nelson Street, Howe Street, and Duncan Way in the Overlook Area. Several property owners in the Overlook Area elected to have liens recorded against their properties to secure the construction of street improvements along their street frontage. This action is to consider a resolution adopting a Local Traffic Facilities Development Impact Fee for a portion of the Overlook Area and authorizing the City Manager to release any liens upon payment of the recommended development impact fee.
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 2022-033, adopting the Local Traffic Facilities Development Impact Fee for street improvements on Courtney Street and portions of Nelson Street, Howe Street, and Duncan Way and authorizing the City Manager to release public improvement liens upon payment of the Local Traffic Facilities Development Impact Fee.
BACKGROUND & HISTORY:
The Overlook Area in Corona, which is approximately 40 acres, was subdivided into 50-foot lots in December 1925. The subdivision was completed and approved without any constraints, meaning that the developer was not required to construct any public improvements as a condition of approval of the subdivision. As development occurs in the Overlook Area, each property owner, prior to obtaining a building permit, is required to construct or guarantee construction of public improvements fronting their property. Many of the property owners in the Overlook Area elected to have liens recorded against their property to secure construction of the public improvements rather than construct the City of Corona Page 1 of 3 Printed on 3/31/2022
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File #: 22-0284
against their property to secure construction of the public improvements rather than construct the public improvements at the time their property was developed. As a result, there is a lack of public improvements for street, sewer, and storm drain infrastructure for the majority of the Overlook Area.
The terms of the public improvement lien require the property owner to construct the public improvements within 90 days of receipt of a written request from the City. If the property owner fails to construct the public improvements, the City has the right to complete the public improvements, at which point the amount owed under the lien becomes due and payable.
On May 18, 2018, and December 5, 2019, the City sent certified letters to the owners of properties on Courtney Street and portions of Nelson Street, Howe Street, and Duncan Way (“Affected Streets”) that are encumbered with public improvement liens requesting that they complete the public improvements within 90 days. Since none of the property owners constructed the public improvements, City staff moved forward with developing construction plans for the completion of the public improvements on the Affected Streets.
On June 17, 2020, the City Council awarded a construction contract to Lee & Stires, Inc. for the construction of street improvements (curb, gutter, asphalt paving, and other ancillary improvements) on the Affected Streets (Project No. 2015-02). The City Council also conducted a public hearing and approved the Local Facilities Development Impact Fee Study prepared by Willdan Financial Services, which analyzed the need for the street improvements to accommodate new development adjacent to the Affected Streets. The fee study provided a reasonable methodology for calculating a development impact fee from the properties located on the Affected Streets that will benefit from the recommended street improvements. The fee study supported a development impact fee equal to $288.47 per linear foot of street frontage based upon the reasonable costs to construct the street improvements as reflected in the construction contract with Lee & Stires. The street improvements were completed on March 17, 2021, and a Notice of Completion was recorded on March 18, 2021 ANALYSIS:
Government Code sections 66000 et seq., known as the Mitigation Fee Act, authorizes cities to impose impact fees on development projects for the purpose of defraying all or a portion of the cost of public facilities related to a development project. Prior to adopting a development impact fee by resolution or ordinance, the City is required to conduct a noticed public hearing. The noticed public hearing was conducted on June 17, 2020.
Resolution No. 2022-033
Resolution No. 2022-033 will formally adopt the Local Traffic Facilities Development Impact Fee (“Traffic Facilities DIF”), as recommended in the adopted fee study. The Traffic Facilities DIF will be imposed upon the lots identified in the fee study and Exhibit “B” of Resolution No. 2022-033, which are the lots adjacent to the street improvements constructed as part of Project No. 2015-02. It should be noted that some of the lots along the Affected Streets were excluded from the fee study.
This is because the owners of those lots either previously paid their fair share for the street improvements prior to development of their lots, or they actually constructed the missing public improvements along the frontage of their lots. The Traffic Facilities DIF will be imposed upon those lots that remain to be developed prior to issuance of a building permit. With respect to those lots for City of Corona Page 2 of 3 Printed on 3/31/2022
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File #: 22-0284
lots that remain to be developed prior to issuance of a building permit. With respect to those lots for which a public improvement lien was recorded, the property owners will be required to pay the Traffic Facilities DIF as their fair share of the improvements. The revenue collected from the Traffic Facilities DIF will be used to reimburse the City for the costs associated with the construction of Project No. 2015-02.
Resolution No. 2022-033 will also authorize the City Manager, or his designee, to approve and record lien releases for those lots encumbered by a public improvement lien upon payment of the Traffic Facilities DIF.
FINANCIAL IMPACT:
There is no fiscal impact on City resources as the property owners will pay the necessary fees to process lien removals.
ENVIRONMENTAL ANALYSIS:
On June 17, 2020, the City Council determined that the award of the construction contract for Project 2015-02 and the adoption of the Local Traffic Facilities Development Impact Fee Study was categorically exempt pursuant to Section 15301(c) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project that consists of minor repairs, maintenance, and alterations to existing streets, including sidewalks gutters, and similar facilities, involving negligible or no expansion of existing or former use is exempt from CEQA. Project No. 2015-02 involved minor repairs and alterations to existing streets to complete the street frontage improvements and did not result in additional automobile lanes or otherwise expand the existing use of the streets. Therefore, no environmental analysis was required. The adoption of Resolution No. 2022-033 is statutorily exempt pursuant to Section 15273(a)(4) of the Guidelines for CEQA, which states that CEQA does not apply to the establishment or approval of charges by public agencies imposed for the purpose of obtaining funds for capital projects necessary to maintain service within existing service areas. The adoption of Resolution No. 2022- 033 will authorize the levy of a development impact fee to reimburse the City for the cost to construct Project No. 2015-02, which was necessary to maintain service on existing streets. Therefore, no environmental analysis is required.
PREPARED BY: PETER RAMEY, CONSULTANT PROJECT MANAGER
REVIEWED BY: SAVAT KHAMPHOU, PUBLIC WORKS DIRECTOR
Attachments:
1. Exhibit 1 - Resolution No. 2022-033
City of Corona Page 3 of 3 Printed on 3/31/2022
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