1 NOVE MBER 19, 202 4
CITY OF COSTA MESA
77 FAIR DRIVE
COSTA MESA, CA 92626
City of Costa
Mesa
FY2023-24
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 .................................................... Carrie Tai Finance .......................................................................................... Carol Molina Information Technology ...................................................................... Steve Ely Parks and Community Services .................................................. . Brian Gruner 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 information 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. Additionally, Council voted to continue with the Traffic Impact fees at $235 per daily in 2021 through 2023.
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. Additionally, Council voted to continue with the Traffic Impact fees at $235 per daily in 2021 through 2023.
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, 2024 is shown below:
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2024*
Development Impact Fees
Description
Park
Development
Fees
Drainage
Fees
Traffic Impact
Fees
Fire System
Development
Fees
Cannabis
Traffic Impact
Fees
Revenue
Fees 142,599 81,807 39,292 91,309
Investment Earnings 111,635 94,516 208,066 15,059 21,351 Other
Revenue Total 254,234 176,323 247,358 15,059 112,660
Expense
Expenditures 787,431 183,061 1,490,325 0 0
Other
Transfers Out
Expense Total 787,431 183,061 1,490,325 0 0
Rev Over(Under) Exp (533,197) (6,738) (1,242,967) 15,059 112,660 Begin Fund Balance 2,872,722 2,174,951 5,840,901 639,122 435,436 End Fund Balance 2,339,525 2,168,213 4,597,934 654,181 548,096 *Unaudited actuals
10 Financial Summary Reporting and CIP
State 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)
Statement of Revenues, Expenditures and Changes in Fund Balance for the Last Five Years:
For the Fiscal Year Ended June 30
Description 2019 2020 2021 2022 2023 2024*
Revenue
Fees 2,299,373 1,049,018 766,372 1,278,941 158,327 142,599 Investment Earnings 254,347 223,901 8,022 (100,792) 33,194 111,635 Other 106,966
Revenue Total 2,553,720 1,272,919 881,359 1,178,149 191,520 254,234 Expense
Expenditures 1,899,528 1,589,954 1,753,155 2,214,169 934,235 787,431 Other 9,735
Transfers Out 3,842
Expense Total 1,913,105 1,589,954 1,753,155 2,214,169 934,235 787,431
Rev Over(Under) Exp 640,615 (317,035) (871,796) (1,036,020) (742,714) (533,197) Begin Fund Balance 5,199,672 5,840,286 5,523,251 4,651,456 3,615,436 2,872,722 End Fund Balance 5,840,286 5,523,251 4,651,456 3,615,436 2,872,722 2,339,525 *Unaudited actuals
11 Capital Improvement Projects (CIP) for the Last Five Years:
For the Fiscal Year Ended June 30
Capital Project 2019 2020 2021 2022 2023 2024*
208 - Park Development Fees
Tanagr Pk Plygrd Equip Repl 96,786 47,220
Wilson TeWinkle Park Bridge 18,630 4,273 109,118
Fairview Park Improvements 198,810 344,382
Pk Security Lighting Repl 86,983 102,249 28,919
Jack Hammett Field Upgrade 63,634 3,300 8,796 1,532,681 204,580 106,056 Fairview Pk Master Plan 54,854 151,967
Fairview Park Bluffs 151,406
Fairview Pk Fence Sign Trail 5,136 762 110
Jordan Pk Playground Equip 96,384 77,371
TeWinkle Park Lakes Repairs 31,830 86,060 13,885
NCC - Library Development 1,430,824 1,282,483 1,427,452 225,904 Shalimar Park Improvements 6,940 14,942
Fairview Pk Mstr Plan Update 59,822
Ketchum-Libolt Park Exp 6,940 12,867
Education Hubs Fairview Pk 5,185
208 - Park Development Fees
Fund Total 1,899,528 1,285,783 1,523,232 2,007,351 596,218 787,431
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 2019 2020 2021 2022 2023 2024*
Revenue
Fees 268,800 898,498 433,328 348,736 76,516 81,807
Investment Earnings 57,202 78,484 2,100 (57,057) 22,712 94,516 Other 107,327
Revenue Total 326,002 976,982 435,428 291,679 206,555 176,323 Expense
Expenditures 56,980 194,127 593,405 145,850 273,825 183,061 Expense Total 56,980 194,127 593,405 145,850 273,825 183,061
Rev Over(Under) Exp 269,022 782,855 (157,977) 145,829 (67,270) (6,738) Begin Fund Balance 1,202,491 1,471,513 2,254,368 2,096,392 2,242,221 2,174,951 End Fund Balance 1,471,513 2,254,368 2,096,392 2,242,221 2,174,951 2,168,213 *Unaudited actuals
Capital Improvement Projects (CIP) Expenditures for the Last Five Years:
For the Fiscal Year Ended June 30
Capital Project 2019 2020 2021 2022 2023 2024*
209 - Drainage Fees Fund
Catch Basin Inserts-Various 9,966 169,750 26,727 29,199 Citywide Storm Drain Impr 56,980 184,161 332,976 108,752 206,984 59,000 Westside Storm Drain Impr 10,370 66,841 89,625
NCC - Library Development 90,679
209 - Drainage Fees Fund Total 56,980 194,127 593,405 145,850 273,825 177,824
Funds held past the fifth year and first deposit
Not applicable at this time. All funds were expended or committed 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 2019 2020 2021 2022 2023 2024
Revenue
Fees 182,166 259,298 1,212,500 437,943 601,330 39,292
Investment Earnings 177,173 174,806 (9,496) (143,170) 60,376 208,066 Other 1,855 7,167
Revenue Total 359,339 434,104 1,204,859 294,773 668,873 247,358 Expense
Expenditures 67,090 220,544 404,704 127,222 485,738 1,490,325 Other 75,000
Expense Total 67,090 295,544 404,704 127,222 485,738 1,490,325
Rev Over(Under) Exp 292,279 138,560 800,155 167,552 183,135 (1,242,967) Begin Fund Balance 4,259,250 4,551,499 4,690,059 5,490,214 5,657,766 5,840,901 End Fund Balance 4,551,499 4,690,059 5,490,214 5,657,766 5,840,901 4,597,934 *Unaudited actuals
Capital Improvement Projects (CIP) Expenditures for the Last Five Years:
For the Fiscal Year Ended
Capital Projects 2019 2020 2021 2022 2023 2024*
214 - Traffic Impact Fees Fund
W 19th St Wallace Av Traf Sig 181,158
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 68,810 Sunflower Traff Signal Sync 93,407
W 17th Design Newport Westside 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 Project 712 1,805 12,052 82,152 861,298 Merrimac Way Bicycle Facility 181,847 16,837
Adams Av Bicycle Facility Project 5,715 6,832
Bicycle/Pedestrian Infra Lamp 1,976 2,459
Randolph Prkg & Pedestrin Impr 25,792 124,208
West 18th & Wilson Crosswalks 9,325 15,359 372,750 Fairview Road Improvement Proj 17,900 3,850
214 - Traffic Impact Fees Fund
Total 67,090 220,544 404,704 127,222 485,738 1,490,325
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 2019 2020 2021 2022 2023 2024
Revenue
Fees 469,332
Investment Earnings 5,865 25,319 45 (15,857) 3,437 15,059 Other
Revenue Total 5,865 494,651 45 (15,857) 3,437 15,059
Expense
Expenditures
Transfers Out
Expense Total 0 0 0 0 0 0
Rev Over (Under) Exp 5,865 494,651 45 (15,857) 3,437 15,059 Begin Fund Balance 150,981 156,846 651,497 651,541 635,685 639,122 End Fund Balance 156,846 651,497 651,541 635,685 639,122 654,181 *Unaudited actuals
Capital Improvement Projects (CIP) Expenditures for the Last Five Years:
For the Fiscal Year Ended June 30
Capital Projects 2019 2020 2021 2022 2023 2024
218 - Fire System Dev. Fees
Corp Yard Exhaust System
218 - Fire System Dev. Fees
Fund Total 0 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 2019 2020 2021 2022 2023 2024*
Revenue
Fees 432,659 91,309
Investment Earnings 2,778 21,351
Other
Revenue Total 0 0 0 0 435,436 112,660
Expense
Expenditures
Transfers Out
Expense Total 0 0 0 0 0 0
Rev Over(Under) Exp 435,436 112,660
Begin Fund Balance 0 435,436
End Fund Balance 0 0 0 0 435,436 548,096
*Unaudited actuals
Capital Improvement Projects (CIP) Expenditures for the Last Five Years:
For the Fiscal Year Ended June 30
Capital Projects 2019 2020 2021 2022 2023 2024*
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
The City's current, Adopted Budget 2024 /25, which includes the Five -Year Capital Improvement Plan (CIP) 2024/25 — 2028/29 can be found on the City's website at:
https://www.costamesaca.gov/home/showpublisheddocument/55579/638315291587670000
Funding of Infrastructure
The FY 2024/25 — FY 2028/29 CIP identifies all funding sources and amounts for individual projects through FY 2028 /29. 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.
Once 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 FY2024/25 - FY2028/29
208 - Park Development Fees Fund
700021 - Wilson TeWinkle Park Bridge Repairs 67,981
700027 - TeWinkle Skate Park Expansion 100,000
700054 - Westside Park Development 250,000
700080 - Park Security Lighting/Replacement 33,332
700115 - Jack Hammett Sports Complex ADA Improvements 203,207 700129 - Shalimar Park Improvements 228,118
700133 - Canyon Park Inventory Management Restoration 60,000 700134 - Fairview Park Fence Sign Trail 293,992
700135 - Fairview Park Master Plan Update 177,777
700137 - TeWinkle Park Lakes Repairs 700
700139 – Ketchum-Libolt Park Expansion 30,192
700142 – Brentwood Park Improvements 400,000
700149 – Fairview Park – Education Hubs and Signage 84,815 700150 – Fairview Pk – Mesa Restor & Cult Resource Preservation 1,949,053 208 - Park Development Fees Fund Total 3,879,167
18 Drainage Fees
Projects by Fund FY2024/25 - FY2028/29
209 - Drainage Fees Fund
550008 - Citywide Catch Basin Inserts and Water Quality Improvement 151,189 550011 - Citywide Storm Drain Improvements 495,454
550022 - Westside Storm Drain Improvements 1,433,165
550023 – Placentia Ave Stormwater 125,000
209 - Drainage Fees Fund Total 2,204,808
Traffic Impact Fees
Projects by Fund FY2024/25 - FY2028/29
214 - Traffic Impact Fees Fund
300148 - Citywide Bicycle Rack Improvements 178,482
300174 - Adams at Pinecreek Improvements 1,408,566
300181 - Fairview Road Improvement Project 1,503,250
370010 - Mesa del Mar Multi-Model Access 100,000
370039 - Baker/Placentia/19th/Victoria Traffic Signal Synchronization 30,315 450010 - Class II, III, and IV Bicycle Projects 241,983 450014 - Adams Avenue Bicycle Facility Project 740,000
450015 - Bicycle/Pedestrian Infrastructure Improvements 495,564 450016 - Mesa/Santa Ana Bicycle Facility Improvements 100,000 450017 - MV/Peterson Place Class II Bicycle 100,000
214 - Traffic Impact Fees Fund Total 4,898,160
Fire System Development Fees
No current projects to report.
Cannabis Traffic Impact Fees
Projects by Fund FY2024/25 - FY2028/29
240 – Cannabis Traffic Impact Fees Fund
450015 – Bicycle Pedestrian Infra Improvements 150,000
240 – Cannabis Traffic Impact Fees Fund Total 150,000
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).