1 DECEMBER 5 , 2023
CITY OF COSTA MESA
77 FAIR DRIVE
COSTA MESA, CA 92626
City of Costa
Mesa
FY2022-23
Development
Impact Fee
Report
ATTACHMENT 1
2 Table of Contents
City Council Directory ................................................................................................... 3
City Officials Directory .................................................................................................. 4
Introduction
Legal Requirements for Development Impact Fee Reporting ...................................... 5 Description of Development Impact Fees with corresponding Fee Schedules ............. 7
Development Impact Fee Report
Statement of Revenues, Expenditures and Changes in Fund Balance Summary ....... 9
Financial Summary Report and Capital Improvement Projects (CIP) Park Development Fees ............................................................................................. 10 Drainage Fees ........................................................................................................... 12 Traffic Impact Fees .................................................................................................... 13 Fire System Development Fees ................................................................................. 15 Cannabis Traffic Impact Fees .................................................................................... 16
Development Impact Project Identification
Park Development Projects ........................................................................................ 17 Drainage Projects ...................................................................................................... 18 Traffic Impact Projects ............................................................................................... 18 Fire System Development Projects ............................................................................ 18 Cannabis Traffic Impact Projects ............................................................................... 18
City Council Action and Studies
Review of the Citywide Traffic Impact Fee Program .................................................. 19 Update to the Park Impact Fees ................................................................................ 35
3 City Leadership
JOHN STEPHENS
MAYOR
JEFFREY HARLAN DON HARPER LOREN GAMEROS
MAYOR PRO TEM COUNCIL MEMBER COUNCIL MEMBER DISTRICT 6 DISTRICT 1 DISTRICT 2
ANDREA MARR MANUEL CHAVEZ ARLIS REYNOLDS
COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER DISTRICT 3 DISTRICT 4 DISTRICT 5
4 City Official Directory
City Manager’s Office
City Manager .............................................................. Lori Ann Farrell Harrison
Department Directors
City Attorney’s Office ............................................................... Kimberly Barlow Community Development Services .................................................. Jennifer Le Finance .......................................................................................... Carol Molina Information Technology ...................................................................... Steve Ely Parks and Community Services ..................................... . Alma Reyes (Interim) Public Services ...................................................................... Raja Sethuraman
Public Safety
Fire and Rescue ............................................................. Daniel Stefano Police .......................................................................... Ronald Lawrence
5 Legal Requirements for Development Impact Fee Reporting
Legal Requirements for Development Impact Fee Reporting
California Government Code Section 66006 (b)
California Government Code Section 66006 (b) defines the specific reporting requirements for local agencies that impose AB 1600 DIFs on new development. Annually, for each separate fund established for the collection and expenditure of DIFs, the local agency shall, within 180 days of the close of the fiscal year, make available to the public the i nformation shown below for the most recent fiscal year.
a) A brief description of the type of fee in the account or fund. b) The amount of the fee.
c) The beginning and ending balance of the account or fund. d) The amount of the fees collected and interest earned. e) An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. f) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
g) A description of each inter -fund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an inter-fund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. h) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocations pursuant to subdivision (f) of Section 66001.
California Government Code Section 66001
For all funds established for the collection and expenditure of DIFs, California Government Code Section 66001 (d) has additional requirements. For the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make all of the following findings with respect to that portion of the fund remaining unexpended, whether committed or uncommitted:
a) Identify the purpose to which the fee is to be put.
b) Demonstrate a reasonable relationship between the fee and purpose for which it is charged.
c) Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements identified in paragraph (2) of subdivision (a). d) Designate the approximate dates on which the funding referred to in subparagraph (c) is expected to be deposited into the appropriate account or fund.
6 California Government Code Section 66002
The State of California Government Code Section 66002 states that:
a) Any local agency, which levies a fee subject to Section 66001, may adopt a capital improvement plan, which shall indicate the approximate location, size, time of availability, and estimates of cost for all facilities or improvements to be financed with the fees.
b) The capital improvement plan shall be adopted by, and shall be annually updated by, a resolution of the governing body of the local agency adopted at a noticed public hearing.
Notice of the hearing shall be given pursuant to Section 65090. In addition, mailed notice shall be given to any city or county, which may be significantly affected by the capital improvement plan. This notice shall be given no later than the date the local agency notices the public hearing pursuant to Section 65090. The information in the notice shall be not less than the information contained in the notice of public hearing and shall be given by first-class mail or personal delivery.
c) "Facility" or "improvement," as used in this section, means any of the following:
1. Public buildings, including schools and related facilities; provided that school facilities shall not be included if Senate Bill 97 of the 1987- 88 Regular Session is enacted and becomes effective on or before January 1, 1988.
2. Facilities for the storage, treatment, and distribution of nonagricultural water.
3. Facilities for the collection, treatment, reclamation, and disposal of sewage.
4. Facilities for the collection and disposal of storm waters and for flood control purposes.
5. Facilities for the generation of electricity and the distribution of gas and electricity.
6. Transportation and transit facilities, including but not limited to streets and supporting improvements, roads, overpasses, bridges, harbors, ports, airports, and related facilities.
7. Parks and recreation facilities.
8. Any other capital project identified in the capital facilities plan adopted.
7 Description of Development Impact Fees with Corresponding Fee Schedule
Park Development Impact Fees (Quimby Act Fees)
Fee Description: This fee provides funding for additional or improved park and/or recreation facility improvements for which the need is generated by new development within the City.
Fee Schedule: The table below indicates the applicable park development fee per unit that will be applied to new residential projects based on the net increase in residential units.
Development Fee per Unit
Single-family Dwelling Unit $13,572.00
Multi-family Dwelling Unit $13,829.00
Apartment Dwelling Unit $5,000.00
Drainage Impact Fees
Fee Description: This fee provides funding for additional construction and maintenance of the City's drainage system for which the need is generated by new development or redevelopment within the City.
Fee Schedule: The table below indicates the applicable drainage impact fee per acre that will be applied to new or redeveloped projects.
Development Type Fee per Acre
Low Density Residential Use $6,283.00
Medium Density Residential Use $7,539.00
High Density Residential Use $10,052.00
Commercial / Industrial Density Residential Use $11,309.00
Traffic Impact Fees
Fee Description: This fee provides funding for additional or improved traffic signal, operation, and infrastructure improvements for which the need is generated by new or expanding development within the City.
Fee Schedule: The citywide Traffic Impact Fee is assessed on the increased number of average daily trips generated by the proposed project. The City Council adopted a fee of $235 per daily trip on November 13, 2018. On December 17, 2020, the City Council voted to continue the Traffic Impact fees at $235 per daily trip.
8 Fire System Development Fees
Fee Description: This fee provides funding for additional fire protection facilities, equipment, and paramedic support for which the need is generated by future development within the North Costa Mesa area. This fee is only levied against five identified developments: Home Ranch, South Coast Plaza Town Center, South Coast Metro Center, and Sakioka Farms' Lots 1 and 2.
Fee Schedule: The fee is $0.285 per square foot of new commercial, industrial or residential development.
Cannabis Traffic Impact Fees
Fee Description: This fee provides funding for additional or improved traffic signal, operation, and infrastructure improvements within the City for which the need is generated by the cannabis retail establishments.
Fee Schedule: The citywide Cannabis Traffic Impact Fee is assessed on the increased number of average daily trips generated by the proposed project. The City Council adopted a fee of $235 per daily trip on November 13, 2018. On December 17, 2020, the City Council voted to continue the Traffic Impact fees at $235 per daily trip which is the same for the Cannabis Traffic Impact Fee.
9 Statement of Revenues, Expenditures and Changes in Fund Balance
A summary of activities in each type of development impact fee for fiscal year ended June 30, 2023 is shown below:
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2023*
Development Impact Fees
Description
Park
Development
Fees
Drainage
Fees
Traffic Impact
Fees
Fire System
Development
Fees
Cannabis
Traffic Impact
Fees
Revenue
Fees 158,327 76,516 601,330 432,659
Investment Earnings 33,194 22,712 60,376 6,567 2,778 Other 107,327 7,167
Revenue Total 191,520 206,555 668,873 6,567 435,436
Expense
Expenditures 934,235 273,825 485,738
Other
Transfers Out
Expense Total 934,235 273,825 485,738 0 0
Rev Over(Under) Exp (742,715) (67,270) 183,135 6,567 435,436 Begin Fund Balance 3,615,436 2,242,221 5,657,766 635,685 0 End Fund Balance 2,872,722 2,174,951 5,840,901 642,252 435,436 *Unaudited actuals
10 Financial Summary Reporting and CIP
S
tate law requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the costs of the public improvement that was funded with fees. A summary of improvements for each Development Impact Fee is provided.
PARK DEVELOPMENT FEES (QUIMBY ACT FEES)
S
tatement of Revenues, Expenditures and Changes in Fund Balance for the Last Five Years:
For the Fiscal Year Ended June 30
Description 2018 2019 2020 2021 2022 2023*
Revenue
Fees 4,657,896 2,299,373 1,049,018 766,372 1,278,941 158,327 Investment Earnings (8,310) 254,347 223,901 8,022 (100,792) 33,194 Other 106,966
Revenue Total 4,649,586 2,553,720 1,272,919 881,359 1,178,149 191,520 Expense
Expenditures 2,558,466 1,899,528 1,589,954 1,753,155 2,214,169 934,235 Other 10,810 9,735
Transfers Out 3,842
Expense Total 2,569,276 1,913,105 1,589,954 1,753,155 2,214,169 934,235 Rev Over(Under) Exp 2,080,310 640,615 (317,035) (871,796) (1,036,020) (742,715) Begin Fund Balance 3,119,361 5,199,672 5,840,286 5,523,251 4,651,456 3,615,436 End Fund Balance 5,199,672 5,840,286 5,523,251 4,651,456 3,615,436 2,872,721 *Unaudited actuals
11 Capital Improvement Projects (CIP) for the Last Five Years:
For the Fiscal Year Ended June 30
Capital Project 2018 2019 2020 2021 2022 2023
208 - Park Development Fees
Tanagr Pk Plygrd Equip Repl 96,786 47,220
Wilson TeWinkle Prk Bridg 18,630 4,273
Fairview Park Improvements 3,455 198,810
Pk Security Lighting Repl 11 86,983 102,249
Jack Hammett Field Upgrade 55,000 63,634 3,300 8,796 1,532,681 204,580 Fairview Pk Mstr Plan 54,854
Fairview Park Bluffs 151,406
Fairview Pk Fence Sign Trail 5,136 762
Jordan Pk Playgrnd Equip 96,384 77,371
TeWinkle Park Lakes Repairs 31,830 86,060
NCC - Library Development 2,500,000 1,430,824 1,282,483 1,427,452 225,904 Shalimar Park Improvements 6,940
Fairview Pk Mstr Plan Update 59,822
Ketchum-Libolt Park Exp 6,940
208 - Park Development Fees
Fund Total 2,558,466 1,899,528 1,285,783 1,523,232 2,007,351 596,218
Funds held past the fifth year and first deposit
Not applicable at this time. All funds were expended within the five-year timeframe to fund park improvements and/or recreation facility improvements.
Construction Commencement Date for Incomplete Improvements Not applicable at this time.
Inter-fund Transfers and Loans
No loans were disbursed during this period.
Amount of Refunds
No refunds of any of these funds were made or required in during this period.
12 DRAINAGE FEES
Statement of Revenues, Expenditures and Changes in Fund Balance for the Last Five Years:
For the Fiscal Year Ended June 30
Description 2018 2019 2020 2021 2022 2023*
Revenue
Fees 113,610 268,800 898,498 433,328 348,736 76,516
Investment Earnings 9,519 57,202 78,484 2,100 (57,057) 22,712 Other 107,327
Revenue Total 123,130 326,002 976,982 435,428 291,679 206,555 Expense
Expenditures 1,101,378 56,980 194,127 593,405 145,850 273,825 Expense Total 1,101,378 56,980 194,127 593,405 145,850 273,825
Rev Over(Under) Exp (978,248) 269,022 782,855 (157,977) 145,829 (67,270) Begin Fund Balance 2,180,739 1,202,491 1,471,513 2,254,368 2,096,392 2,242,221 End Fund Balance 1,202,491 1,471,513 2,254,368 2,096,392 2,242,221 2,174,951 *Unaudited actuals
Capital Improvement Projects (CIP) for the Last Five Years:
For the Fiscal Year Ended June 30
Capital Project 2018 2019 2020 2021 2022 2023
209 - Drainage Fees Fund
Catch Basin Inserts-Various 10,886 9,966 169,750 26,727 Citywide Storm Drain Impr 740,492 56,980 184,161 332,976 108,752 206,984 Westside Storm Drain Impr 10,370 66,841
NCC - Library Development 350,000 90,679
209 - Drainage Fees Fund Total 1,101,378 56,980 194,127 593,405 145,850 273,825
Funds held past the fifth year and first deposit
Not applicable at this time. All funds were expended within the five-year timeframe to fund storm drain improvements.
Construction Commencement Date for Incomplete Improvements Not applicable at this time.
Inter-fund Transfers and Loans
No loans were disbursed during this period.
Amount of Refunds
No refunds of any of these funds were made or required in during this period.
13 TRAFFIC IMPACT FEES
Statement of Revenues, Expenditures and Changes in Fund Balance for the Last Five Years:
For the Fiscal Year Ended June 30
Description 2018 2019 2020 2021 2022 2023*
Revenue
Fees 878,865 182,166 259,298 1,212,500 437,943 601,330
Investment Earnings 4,203 177,173 174,806 (9,496) (143,170) 60,376 Other 1,855 7,167
Revenue Total 883,068 359,339 434,104 1,204,859 294,773 668,873 Expense
Expenditures 1,227 67,090 220,544 404,704 127,222 485,738 Other 75,000
Expense Total 1,227 67,090 295,544 404,704 127,222 485,738
Rev Over(Under) Exp 881,841 292,249 138,560 800,155 167,552 183,135 Begin Fund Balance 3,377,409 4,259,250 4,551,499 4,690,059 5,490,214 5,657,766 End Fund Balance 4,259,250 4,551,499 4,690,059 5,490,214 5,657,766 5,840,901 *Unaudited actuals
Capital Improvement Projects (CIP) for the Last Five Years:
For the Fiscal Year Ended
Capital Projects 2018 2019 2020 2021 2022 2023
214 - Traffic Impact Fees Fund
Fairview Road/Wilson St Impr
Bicycle Racks Citywide 35,032 8,299 28,187
Hyland/MacArthur Intersct Impr 58,148 23,224
Adams at Pinecreek Imp 3,831 25,056
East 17th St. Landscape Enhanc (2,611)
Fairview Traffic Signal Sync 10,457 174,575
Baker/Placntia/19th/Victr TSSP 15,373 138,620
Sunflower Traff Signal Sync 93,407
W 17th Design Newport Westside 1,227 5,842 48,992
Newport Blvd Wide 19th to 17th 3,100 43,751 5,731 31,491 52,280 Class II and III Bicycle Proj 712 1,805 12,052 82,152 Merrimac Way Bicycle Facility 181,847 16,837
Adams Av Bicycle Facility Proj 5,715 6,832
Bicycle/Pedestrian Infra Lamp 1,976
Randolph Prkg & Pedestrin Impr 25,792 124,208
West 18th & Wilson Crosswalks 9,325 15,359
Fairview Road Improvement Proj 17,900
214 - Traffic Impact Fees Fund
Total 1,227 67,090 220,544 404,704 127,222 485,738
14 Funds held past the fifth year and first deposit
Traffic Impact Fee funds are being held passed the fifth year and first deposit. These funds are intended to fund additional or improved traffic signal, operation, and infrastructure improvements for which the need is generated by new or expanding development within the City.
Construction Commencement Date for Incomplete Improvements Not applicable at this time.
Inter-fund Transfers and Loans
No loans were disbursed during this period.
Amount of Refunds
No refunds of any of these funds were made or required in during this period.
15 FIRE SYSTEM DEVELOPMENT FEES
Statement of Revenues, Expenditures and Changes in Fund Balance for the Last Five Years:
For the Fiscal Year Ended June 30
Description 2018 2019 2020 2021 2022 2023*
Revenue
Fees 469,332
Investment Earnings 1,061 5,865 25,319 45 (15,857) 6,567 Other
Revenue Total 1,061 5,865 494,651 45 (15,857) 6,567
Expense
Expenditures 82,735
Transfers Out 125,000
Expense Total 207,735 0 0 0 0 0
Rev Over(Under) Exp (206,674) 5,865 494,651 45 (15,857) 6,567 Begin Fund Balance 357,655 150,981 156,846 651,497 651,541 635,685 End Fund Balance 150,981 156,846 651,497 651,541 635,685 642,252 *Unaudited actuals
Capital Improvement Projects (CIP) for the Last Five Years:
For the Fiscal Year Ended June 30
Capital Projects 2018 2019 2020 2021 2022 2023
218 - Fire System Dev. Fees
Corp Yard Exhaust System 82,735
218 - Fire System Dev. Fees
Fund Total 82,735 0 0 0 0 0
Funds held past the fifth year and first deposit
Fire System Development Fee funds are being held past the fifth year and first deposit. These funds are intended to fund additional fire protection facilities, equipment, and paramedic support for which the need is generated by future development within Costa Mesa.
Construction Commencement Date for Incomplete Improvements Not applicable at this time.
Inter-fund Transfers and Loans
No loans were disbursed during this period.
Amount of Refunds
No refunds of any of these funds were made or required in during this period.
16 CANNABIS TRAFFIC IMPACT FEES
Statement of Revenues, Expenditures and Changes in Fund Balance for the Last Five Years:
For the Fiscal Year Ended June 30
Description 2018 2019 2020 2021 2022 2023*
Revenue
Fees 432,659
Investment Earnings 2,778
Other
Revenue Total 0 0 0 0 0 435,436
Expense
Expenditures
Transfers Out
Expense Total 0 0 0 0 0 0
Rev Over(Under) Exp 435,436
Begin Fund Balance 0
End Fund Balance 0 0 0 0 0 435,436
*Unaudited actuals
Capital Improvement Projects (CIP) for the Last Five Years:
For the Fiscal Year Ended June 30
Capital Projects 2018 2019 2020 2021 2022 2023
None 0 0 0 0 0 0
Funds held past the fifth year and first deposit
These funds are intended to fund off -site transportation improvements City -wide. Financing is provided by fees charged to cannabis retail establishments.
Construction Commencement Date for Incomplete Improvements Not applicable at this time.
Inter-fund Transfers and Loans
No loans were disbursed during this period.
Amount of Refunds
No refunds of any of these funds were made or required in during this period.
17 Development Impact Fee Project Identification
T
he City's current, Adopted Budget 2023/24 , which includes the Five-Year Capital Improvement Plan (CIP) 2023/24 — 2027/28 can be found on the City's website at:
https://www.costamesaca.gov/home/showpublisheddocument/55579/638315291587670000 Funding of Infrastructure
The FY 2023/24 — FY 2027/28 CIP identifies all funding sources and amounts for individual projects through FY 2027/28 . The CIP is updated annually to reflect the current City's infrastructure needs. As a CIP is identified, the project is evaluated to determine the portion of the project that will service existing residents and businesses versus new development.
O
nce the determination of use is made, the percentage of use attributed to new development is then funded by the appropriate development fee based on the type of project. The percentage of use associated with existing residents or businesses are funded from other appropriate sources. Estimated construction start dates for projects are adjusted, as needed, to reflect the needs of the community.
ONGOING/NEW CAPTIAL IMPROVEMENT PROJECTS
Park Development Fees
Projects by Fund FY2023/24 - FY2027/28
208 - Park Development Fees Fund
700021 - Wilson TeWinkle Park Bridge Repairs 177,099
700027 - TeWinkle Skate Park Expansion 100,000
700054 - Westside Park Development 250,000
700080 - Park Security Lighting/Replacement 62,252
700110 - Open Space Master Plan Update 75,000
700115 - Jack Hammett Sports Complex ADA Improvements 309,263 700129 - Shalimar Park Improvements 243,060
700133 - Canyon Park Inventory Mgmt Restoration 60,000
700134 - Fairview Park Fence Sign Trail 294,103
700135 - Fairview Park Master Plan Update 254,744
700137 - TeWinkle Park Lakes Repairs 14,585
700139 – Ketchum-Libolt Park Expansion 43,060
700142 – Brentwood Park Improvements 400,000
700149 – Fairview Park – Education Hubs and Signage 90,000 700150 – Fairview Pk – Mesa Restor & Cult Resource Preservation 3,000,000 208 - Park Development Fees Fund Total 5,373,166
18 Drainage Fees
Projects by Fund FY2023/24 - FY2027/28
209 - Drainage Fees Fund
550008 - Citywide Catch Basin Inserts and Water Quality Improvement 95,883 550011 - Citywide Storm Drain Improvements 554,455
550022 - Westside Storm Drain Improvements 1,522,790
209 - Drainage Fees Fund Total 2,173,128
Traffic Impact Fees
Projects by Fund FY2023/24 - FY2027/28
214 - Traffic Impact Fees Fund
300129 - Harbor/Adams Intersection Improvements
300146 - Fairview Road/Wilson Street Improvements
300148 - Citywide Bicycle Rack Improvements 178,482
300174 - Adams at Pinecreek Improvements 658,566
300181 - Fairview Road Improvement Project 882,100
370010 - Mesa del Mar Multi-Model Access 100,000
370034 - Fairview Traffic Signal Synchronization 5,377
370039 - Baker/Placentia/19th/Victoria Traffic Signal Synchronization 99,125 370056 - Bear Street Traffic Signal Sync 31,000
370059 – W 19th St Wallace Av Traf Sig 192,037
450010 - Class II, III, and IV Bicycle Projects 1,103,281 450014 - Adams Avenue Bicycle Facility Project 500,000
450015 - Bicycle/Pedestrian Infrastructure Improvements 398,024 450016 - Mesa/Santa Ana Bicycle Facility Improvements 100,000 450017 - MV/Peterson Place Class II Bicycle 100,000
470002 - West 18th Street and Wilson Street Pedestrian Crossings 375,316 214 - Traffic Impact Fees Fund Total 4,723,308
Fire System Development Fees
No current projects to report.
Cannabis Traffic Impact Fees
No current projects to report.
19 City Council Action and Studies
The following attachments are Development Impact Fees related recent and prior Council Reviews (Traffic Impact Fees and Park Development Fees).