1 Development Impact Fee
Annual Report
for
Period Ending
June 30, 2023
December 12, 2023
2 Development Impact Fee Annual Report
Table of Contents
Overview and Legal Requirements for Development Impact Fee Reporting ......................... 3 Parkland Fee.................................................................................................................................. 4 Park Facilities Fee ......................................................................................................................... 6 Traffic Impact Fee ........................................................................................................................ 9 Fire Facilities Fee ........................................................................................................................ 13 Capital Facilities Fee................................................................................................................... 15 Comprehensive List Development Impact Fees Effective July 1, 2022.................................. 17
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3 Overview and Legal Requirements for Development Impact Fee Reporting
This report is intended to fulfill the annual requirements set forth in the Mitigation Fee Act (Government Code Section 66000 et seq.) with respect to the City of Fremont’s Development Impact Fees. The City has five Development Impact Fees:
• Parkland Fee
• Park Facilities Fee
• Traffic Facilities Fee
• Fire Facilities Fee
• Capital Facilities Fee
The City has established separate funds for each of these five fees. When a developer pays a development impact fee, the payment is credited to the appropriate fund. Interest earned on the money in a fund is credited to that fund. Each fund is available only for the purpose for which its associated development impact fee was charged, and expenditures cannot be made from a fund for any other purpose.
For each development impact fee fund, the following information is provided in this Report:
A. Annual Reporting Information (Required by Gov’t Code Sec. 66006) (This information is provided for the fiscal year beginning July 1, 2022 and ending June 30, 2023.
1. A brief description of the type of fee in the fund.
2. The rate of the fee.
3. The beginning and ending balance in the fund for the fiscal year.
4. The amount of fees collected, and interest earned during the fiscal year.
5. An identification of each public improvement on which fees were expended during the fiscal year 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.
6. If both (i) sufficient funds have been collected to complete financing on an incomplete public improvement that was identified at the time the fee was imposed and (ii) the public improvement remains incomplete, an identification of an approximate date by which the construction of the public improvement will commence.
7. A description of each interfund 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 interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or funds will receive on the loan.
Note that, during Fiscal Year July 1, 2022, through June 30, 2023, no refunds pursuant to Government Code Section 66001(e) or allocations pursuant to Government Code Section 66001(f) were made in connection with any of the development impact fee accounts.
All projections regarding future use of City funds for public improvements are made with reference to the most recent Capital Improvement Program of the City adopted by the City Council on June 13, 2023, as amended and updated from time to time.
All fees are administered pursuant to Chapter 18.290 of the Fremont Municipal Code. 4 Parkland Fee
Annual Information
1. Brief Description of the Fee: The parkland fee is levied on all new residential development to pay for new development’s share of the cost of acquiring land for parks.
For further information on the fee calculation methodology, please refer to the Parkland and Park Facilities Fee Technical Report, May 17, 2021, and the Comprehensive Development Impact Fee Background Report, May 17, 2021, prepared by Willdan Financial Services, report available: https://www.fremont.gov/government/departments/community- development/planning-building-permit-services/fees.
2. Fee Rate: The rate of the fee effective July 1, 2022, per dwelling unit, based on the number of bedrooms in the dwelling unit, is set forth below:
Land Use Parkland
0 bedrooms (studios) $ 5,181
1 bedroom $ 8,027
2 bedrooms $11,038
3 bedrooms $13,517
4 bedrooms $16,895
>4 per add’l bedroom $ 3,115
3. Fund Balance: The balance of the parkland fee fund as of the following dates was:
Beginning Balance - July 1, 2022 $56,220,860
Ending Balance - June 30, 2023 $61,753,849
4. Fees Collected and Interest Earned : The total of the fees collected, and interest earned on the fund during the period from July 1, 2022, through June 30, 2023, was:
Fees Collected: $4,849,928
Interest Earned: $ 734,907
5 5. Identification of Funded Improvements: No parkland was purchased in fiscal year July 1, 2022 through June 30, 2023. The City hired a real estate broker/firm to assist with analysis of potential park land purchase opportunities. A net expenditure in the amount of $51,846 was expensed to this fund during this fiscal year.
6. Outstanding Projects (as of June 30, 2023): Sufficient funds have not been collected to complete financing on an incomplete public improvement that was identified at the time the fee was imposed and which remains incomplete at this time. The City continually seeks to identify available parcels of land that can be purchased for a prudent price, are available for purchase, in compliance with the Parks and Recreation Master Plan, and meets the City’s parkland needs. The City hired a real estate broker/firm to assist with analysis of potential parkland purchase opportunities.
7. Interfund Activities: There were no interfund loans or transfers during the period from July 1, 2022 through June 30, 2023.
For more information about the parkland program, reference is made to:
(i) Parkland and Park Facilities Fee Technical Report, May 17, 2021
(ii) Comprehensive Development Impact Fee Background Report, May 17, 2021
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6 Park Facilities Fee
Annual Information
1. Brief Description of the Fee: The fee is levied to fund construction of park facilities that are needed to serve new residential development.
For further information on the fee calculation methodology, see Parkland and Park Facilities Fee Technical Report, May 17, 2021, and the Comprehensive Development Impact Fee Background Report, May 17, 2021, prepared by Willdan Financial Services, report available:
https://www.fremont.gov/government/departments/community-development/planning- building-permit-services/fees
2. Fee Rate: The rate of the fee effective July 1, 2022, per dwelling unit, based on the number of bedrooms in the dwelling unit, is set forth below:
Land Use
Park
Facilities
0 bedrooms (studios) $ 6,158
1 bedroom $ 9,236
2 bedrooms $12,932
3 bedrooms $16,011
4 bedrooms $19,706
>4 per bedroom $ 3,694
3. Fund Balance: The balance of the park facilities fee funds as of the following dates was:
Beginning Balance - July 1, 2022 $46,833,580
Ending Balance - June 30, 2023 $48,409,859
4. Fees Collected and Interest Earned: The total of the fees collected, and interest earned on the fund during the period from July 1, 2022 through June 30, 2023 was:
Fees Collected: $5,634,359
Interest Earned: $ 670,352
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7 5. Identification of Funded Improvements: Fee proceeds were expended on 28 public improvement and administrative programs during the period from July 1, 2022, through June 30, 2023. These projects, the cost per project, and the percentage of costs paid by fees are included in the chart below:
8 6. Outstanding Projects (as of June 30, 2023): Sufficient funds have been collected to complete financing on 21 outstanding projects. These projects and the anticipated construction/commencement dates are listed below:
Project Name Anticipated
Construction/Commencement Date
Dusterberry Neighborhood Park (New 4.25-acre park) Already Commenced Centerville Community Park (Expand existing park by 10 acres) Already Commenced California Nursery Implementation Already Commenced
Security in Parks (Bollards and New Fencing Already Commenced Palm Avenue Park (New 12-acre park) Spring 2024
Central Park Trail/Loop Parking Lot On hold pending additional funding Central Park Boat Dock & Babbling Brook Bridge Analysis Already Commenced Skate Park Picnic Area Already Commenced
New Parks and Recreation Master Plan Complete
All-inclusive Exercise Equipment at Central Park Already Commenced Cricket Field Shade Already Commenced
Park Planning Already Commenced
CIP Preparation Already Commenced
Central Park Path at Lions Picnic Area Already Commenced Mammoth Picnic Area Upgrade Complete
Central Park East Meadow Trail Already Commenced
Northgate Community Park Roofed Arbor Already Commenced Buena Vista Loop Trail Already Commenced
Pickleball Court Conversion Already Commenced
Vallejo Mills Dog Park and Pickleball Already Commenced Sylvester Harvey CP Loop Trail Already Commenced
Municipal Parcel (Pacific Commons) Already Commenced
Central Park Picnic Area Complete
MSJ Community Park Closed Roof Arbor Complete
Update Park Standards and Details Fall 2024
Central Park Path Stevenson to Lake Already Commenced
Central Park Shoreline Stabilization Already Commenced
7. Interfund Activities: There were no interfund loans or transfers during the period from July 1, 2022 through June 30, 2023.
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9 Traffic Impact Fee
Annual Information
1. Brief Description of the Fee: The traffic impact fee is assessed on new development for its proportionate share of the costs of traffic improvements on the citywide transportation system attributable to increased trips generated by new development through 2035.
For further information on the fee calculation methodology, please refer to the Traffic Impact Fee Technical Report, May 17, 2021 and the Comprehensive Development Impact Fee Background Report, May 17, 2021, prepared by Willdan Financial Service, report available: https://www.fremont.gov/government/departments/community- development/planning-building-permit-services/fees
2. Fee Rate: The rate of the fee effective July 1, 2022, is set forth below:
Land Use Traffic
0 bedrooms (studios) $ 2,540
1 bedroom $ 2,540
2 bedrooms $ 2,837
3 bedrooms $ 2,837
4 bedrooms $ 4,319
>4 per bedroom
See
Note 4
Office (KSF) $ 6,309
Retail/Service (KSF) $ 8,638
Warehouse (KSF) $ 3,735
Light Industrial (KSF) $ 4,573
Manufacturing (KSF) $ 3,175
Research & Development (KSF) $ 4,530
Business Park (KSF) $ 5,335
Convalescent Home/Nursing Home (KSF) $ 4,277
Assisted Living/Congregate Care Facility
(KSF)
$ 848
Hospital (KSF) $ 4,866
Religious Facility (KSF) $ 3,981
Schools, all (K-12) (KSF) $ 8,976
School, Vocation/Trade/Collegian (KSF) $11,178
Hotel/Motel (Room) $ 2,583
4. Under the Traffic fee, residential units with more than four bedrooms pay the fee applicable to a 4-bedroom unit.
3. Fund Balance: The balance of the traffic impact fee fund as of the following dates was:
Beginning Balance - July 1, 2022 $10,550,603
Ending Balance - June 30, 2023 $ 8,385,901
10 4. Fees Collected and Interest Earned: The total of the fees collected, and interest earned on the fund during the period from July 1, 2022 through June 30, 2023 was:
Fees Collected: $1,562,926
Interest Earned: $ 179,887
5. Identification of Funded Improvements: Fee proceeds were expended on 29 public improvement projects and administrative programs during the period from July 1, 2022 through June 30, 2023, as noted in the charts below. These projects, the cost per project, and the percentage of cost paid by fees are included in the chart below:
11 Planning or Program Activities Information during 2022/23 is provided below:
Name of Program
or Planning
Activity
Notes
Traffic Signal;
Major Improvements
(PWC7953)
1) Installation of enhanced traffic signal equipment, including new signal controllers, video detection cameras, CCTV traffic monitoring cameras, and touchless pedestrian push buttons. (Citywide)
2) Implementation and monitoring of new traffic signal coordination timing (along Paseo Padre Parkway, Fremont Boulevard, Stevenson Boulevard, Mowry Avenue, and Warm Springs Boulevard).
Development Impact
Fee Update
(PWC8315)
General administration of the City’s Traffic Impact Fee Program.
Bikeway &
Pedestrian Program
(PWC8875)
1) Implementation of bikeway improvements on Guardino Drive, Niles Boulevard within the town center and on residential collectors roadways such as Bidwell Drive, Mattos Drive, San Pedro Drive, Sutter Drive, Sundale Drive, Starlite Way, and Mayten Way.
2) Implementation of buffered bike lanes on Mowry Avenue, Boyce Road, South Grimmer Boulevard, and Warm Springs Boulevard.
3) Design of new concrete curb separated bikeway at Fremont Boulevard/Stevenson Boulevard intersection.
Traffic Signals:
Upgrades &
Modernization
(PWC8931)
1) Construction management and contract administration for the Fremont Boulevard Safe/Smart Corridor Project. The project scope includes the installation of new traffic signal heads, reflective backplates, signal controllers, signal cabinet upgrades, intersection analytics systems, adaptive signal coordination, signal performance measure systems, Bluetooth travel time devices, touchless pedestrian push buttons, smart street lighting, video detection camera systems, roadside communication units, and the installation of new fiber communication along the entire length of Fremont Boulevard between the two I-880 interchanges.
2) Installation of new CCTV cameras at various major intersections in the City for on-going traffic monitoring purposes.
3) Design of a new Traffic Management Center at the City Development Services Center office.
Pedestrian
Improvement
Program
(PWC8944)
1) Design of the 2023 Pedestrian Crossing Enhancement Project and providing local matching funds for the secured Highway Safety Improvement Program (HSIP) grant for the project. The project will implement enhanced pedestrian crossings with pedestrian actuated beacons at Fremont Boulevard/Clough Avenue, Fremont Boulevard/Papazian Way, Fremont Boulevard/Adams Avenue, Fremont Boulevard/Crestwood Street, Fremont Boulevard/Michael Avenue, Fremont Boulevard/Doane Street, Paseo Padre Parkway/Dorne Place, and Paseo Padre Parkway/Mento Drive intersections.
12 6. Outstanding Projects (as of June 30, 2023): Sufficient funds have been collected to complete financing on 6 outstanding projects. These projects and the anticipated construction commencement dates are listed below:
Project Name Anticipated Construction
Start Date
Mission / Sullivan Traffic Signal (PWC8930) Spring 2024 Fremont/Eugene and Fremont/ Grimmer Protected Intersection Project (PWC8932)
Fall 2023
2023 Pedestrian Crossing Enhancement Project (PWC8944) Fall 2024 Centerville Complete Street Project (PWC8946) Fall 2024 Walnut Avenue/Liberty Street Protected Intersection Project (PWC9037)
Fall 2023
Fremont Boulevard / Walnut Avenue Protected Intersection Project (PWC9044)
Fall 2023
Sufficient funds have not been collected to complete financing on the I-880/Innovation Bridge which remains incomplete at this time. The City continually seeks to identify grant funds available to support this project.
7. Interfund Activities: There were no interfund loans or transfers during the period from July 1, 2022 through June 30, 2023.
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13 Fire Facilities Fee
Annual Information
1. Brief Description of the Fee: The fire facilities fee is assessed on new residential, commercial, and industrial development to pay for its proportionate share of land and construction costs for fire stations and the acquisition cost of fire apparatus and equipment that will be needed to provide adequate fire protection and emergency services for new development.
For further information on the fee calculation methodology, see Fire Facilities Impact Fee Technical Report, May 17, 2021, and the Comprehensive Development Impact Fee Background Report, May 17, 2021, prepared by Willdan Financial Services, report available:
https://www.fremont.gov/government/departments/community-development/planning- building-permit-services/fees
2. Fee Rate: The rate of the fee effective July 1, 2022, is set forth below:
Land Use
Fire
Facilities
0 bedrooms (studios) $273
1 bedroom $370
2 bedrooms $549
3 bedrooms $703
4 bedrooms $824
>4 per bedroom $163
Office (KSF) $673
Retail/Service (KSF) $400
Warehouse (KSF) $402
Light Industrial (KSF) $225
Manufacturing (KSF) $410
Research & Development (KSF) $520
Business Park (KSF) See Note 5
Convalescent Home/Nursing Home (KSF) $225
Assisted Living/Congregate Care Facility
(KSF)
$225
Hospital (KSF) $225
Religious Facility (KSF) $581
Schools, all (K-12) (KSF) $581
School, Vocation/Trade/Collegian (KSF) $581
Hotel/Motel (Room) $128
Note 5. For uses paying the Traffic fee as a Business Park, the most applicable Capital Facilities and Fire Facilities fees would also apply (e.g., office, manufacturing).
14 3. Fund Balance: The balance of the fire facilities fee fund as of the following date was:
Beginning Balance - July 1, 2022 $660,669
Ending Balance - June 30, 2023 $986,256
4. Fees Collected and Interest Earned: The total of the fees collected, and interest earned on the fund during the period from July 1, 2022 through June 30, 2023, was:
Fees Collected: $320,252
Interest Earned: $ 5,690
5. Identification of Funded Improvements: During fiscal year July 1, 2022 through June 30, 2023, $355 of fire facilities fees was used to support the administrative costs associated with the Impact Fee program.
6. Outstanding Projects (as of June 30, 2023): Sufficient funds have not been collected to complete financing on an incomplete public improvement that was identified at the time the fee was imposed and which remains incomplete at this time.
7. Interfund Activities: There were no interfund loans or transfers during the period from July 1, 2022 through June 30, 2023.
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15 Capital Facilities Fee
Annual Information
1. Brief Description of the Fee: The purpose of the capital facilities impact fee is to fund the capital facilities needed to serve new development, including city administration, police, animal shelter, and library facilities.
For information on the fee calculation methodology and a list of planned facilities, see Table A.3 of the Capital Facilities Fee Technical Report, May 17, 2021, also background information is provided in the Comprehensive Development Impact Fee Background Report, May 17, 2021, both reports prepared by Willdan Financial Services, report available:
https://www.fremont.gov/government/departments/community-development/planning- building-permit-services/fee
2. Fee Rate: The rate of the fee effective July 1, 2022, is set forth below:
Land Use
Capital
Facilities
0 bedrooms (studios) $1,456
1 bedroom $1,969
2 bedrooms $2,925
3 bedrooms $3,744
4 bedrooms $4,393
>4 per bedroom $ 869
Office (KSF) $1,136
Retail/Service (KSF) $ 675
Warehouse (KSF) $ 486
Light Industrial (KSF) $ 380
Manufacturing (KSF) $ 691
Research & Development (KSF) $ 876
Business Park (KSF) See Note 5
Convalescent Home/Nursing Home (KSF) $ 380
Assisted Living/Congregate Care Facility
(KSF)
$ 380
Hospital (KSF) $ 380
Religious Facility (KSF) $ 979
Schools, all (K-12) (KSF) $ 979
School, Vocation/Trade/Collegian (KSF) $ 979
Hotel/Motel (Room) $ 216
Note 5. For uses paying the Traffic fee as a Business Park, the most applicable Capital Facilities and Fire Facilities fees would also apply (e.g., office, manufacturing).
16 3. Fund Balance: The balance of the capital facilities fee fund as of the following date was:
Beginning Balance - July 1, 2022 $1,616,747
Ending Balance - June 30, 2023 $1,620,213
4. Fees Collected and Interest Earned : The total of the fees collected, and interest earned on the fund during the period from July 1, 2022 through June 30, 2023 was:
Fees Collected: $1,575,871
Interest Earned: $ 20,813
5. Identification of Funded Improvements: During fiscal year July 1, 2022 through June 30, 2023, $591,379 of capital facilities impact fees were used to pay a portion of the acquisition costs for the Age Well Center at South Fremont, and $1,839 was used to support the administrative costs associated with the Impact Fee program.
6. Outstanding Projects (as of June 30, 2023): Sufficient funds have not been collected to complete financing on an incomplete public improvement that was identified at the time the fee was imposed and which remains incomplete at this time.
7. Interfund Activities: During the period from July 1, 2022 through June 30, 2023, there were no interfund loans, but $1 million was transferred to the general fund to pay a portion of the debt service on the City’s 2017B Lease Revenue Bonds and 2019 Lease Revenue Bonds.
These debt issues funded the following facilities, which were designed to accommodate future development: city hall, police administration center, police detention facility, maintenance center, development services center, main library, family resource center, animal shelter, and senior center expansion.
The amount of debt service funded by the interfund transfer did not exceed the proportion of project cost (principal and interest) that is allocable to new/future development.
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17 Comprehensive List Development Impact Fees Effective July 1, 2022
This chart is provided to present the comprehensive listing of fees established for all fee categories, effective July 1, 2022.
Land Use
Capital
Facilities
Fire
Facilities Traffic Parkland
Park
Facilities
0 bedrooms (studios) $ 1,456 $ 273 $ 2,540 $ 5,181 $ 6,158 1 bedroom $ 1,969 $ 370 $ 2,540 $ 8,027 $ 9,236 2 bedrooms $ 2,925 $ 549 $ 2,837 $11,038 $12,932
3 bedrooms $ 3,744 $ 703 $ 2,837 $13,517 $16,011
4 bedrooms $ 4,393 $ 824 $ 4,319 $16,895 $19,706
>4 per bedroom $ 869 $ 163 See Note 4 $ 3,114 $ 3,694 Office (KSF) $ 1,136 $ 673 $ 6,309 - - Retail/Service (KSF) $ 675 $ 400 $ 8,638 - - Warehouse (KSF) $ 486 $ 402 $ 3,735 - - Light Industrial (KSF) $ 380 $ 225 $ 4,573 - - Manufacturing (KSF) $ 691 $ 410 $ 3,175 - - Research & Development (KSF) $ 876 $ 520 $ 4,530 - - Business Park (KSF) See Note 5 See Note 5 $ 5,335 - - Convalescent Home/Nursing
Home (KSF) $ 380 $ 225 $ 4,277 - - Assisted Living/Congregate
Care Facility (KSF) $ 380 $ 225 $ 848 - - Hospital (KSF) $ 380 $ 225 $ 4,866 - - Religious Facility (KSF) $ 979 $ 581 $ 3,981 - - Schools, all (K-12) (KSF) $ 979 $ 581 $ 8,976 - - School,
Vocation/Trade/Collegian (KSF) $ 979 $ 581 $11,178 - - Hotel/Motel (Room) $ 216 $ 128 $ 2,583 - - Other Use Not Listed Determined based on similar use
Notes:
“-” = No applicable fee
“KSF” = thousand square feet
1. Definitions application to land use categories from the Comprehensive Development Impact Fee Update Background Technical Report shall be used in applying the fees above and are attached for convenience.
2. Residential uses pay all five fees listed above.
3. Non-residential uses pay three fees, being: Capital Facilities; Fire Facilities; and Traffic fees.
4. Under the Traffic fee, residential units with more than four bedrooms pay the fee applicable to a 4-bedroom unit.
5. For uses paying the Traffic fee as a Business Park, the most applicable Capital Facilities and Fire Facilities fees would also apply (e.g., office, manufacturing).
6. Any qualifying project with deed-restricted affordable housing units shall pay Traffic, Parkland, and Park Facilities fees at a rate that is 50% of the rate shown above. Capital and Fire Facilities fees shall be paid at the full rate shown above.