Fremont City Council Meeting: 12/09/25 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Fees & Rates
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5591) DOC ID: 5591
Updated: 12/4/2025 4:28 PM by Dina Lewis Page 1
DEVELOPMENT IMPACT FEE REPORT - Public Hearing (Published Notice) for Approval of the Development Impact Fee Annual and Five-Year Report for Period Ending June 30, 2025 with Statutory Findings; Adoption of Resolution; Make Findings of CEQA Exemption.
Contact Persons:
Name: Angela Mendiola Hans Larsen
Title: Business Manager Public Works Director
Div/Dept: Public Works Public Works
Phone: 510-494-4548 510-494-4722
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this item is to present the Development Impact Fee Annual and Five-Year Report for Period Ending June 30, 2025 (the “2025 Impact Fee Report”) to the City Council for approval and findings in accordance with statutory reporting requirements associated with the collection and use of development impact fees. The City uses development impact fees to expand infrastructure generally related to civic facilities, transportation, and parks, needed to support new development and population growth. The 2025 Impact Fee Report, Attachment 1 to the staff report, contains information on the City of Fremont’s Development Impact Fees for the annual and five-year periods ending June 30, 2025, and meets the reporting and findings requirements of the Mitigation Fee Act, California Government Code Section 66000, et seq.
BACKGROUND: The Mitigation Fee Act (Government Code Section 66000 et seq.), commonly referred to as AB 1600 (the “Act”), requires local agencies that impose development impact fees to follow specific accounting procedures for collecting and tracking the use of fee revenue, and to prepare an annual report providing specific information about those fees. The Act also requires that every five years following the first deposit into the fee account, the City Council must make certain findings with respect to unexpended impact fees. (Gov. Code Section 66001(d)). At this time, the City is required to prepare the annual and the five-year reports, which are combined in the 2025 Impact Fee Report included as Attachment 1 to the staff report.
The 2025 Impact Fee Report was made available to the public within 180 days after the close of the previous fiscal year, beginning on November 18, 2025, by posting the Report on the City of Fremont’s website and making a copy available in the City Clerk’s Office. City Council review of the report and findings is scheduled not sooner than 15 days after the Report was made available to the public in accordance with law.
Notice of the time, place, and address for the public hearing was provided to the public on November 18, 2025, and also mailed at least 15 days prior to the hearing to interested persons who filed a timely request for mailed notices (Gov. Code Section 66006(b)(2)). The public hearing notice was published in the Tri-City Voice on November 18, 2025, and the notice was also sent electronically to email and text subscribers listed on the City’s e-Subscribe Builder’s Interest List.
Council Staff Report (ID # 5591) Meeting of December 9, 2025 Updated: 12/4/2025 4:28 PM by Dina Lewis Page 2
DISCUSSION/ANALYSIS: The City imposes impact fees on new development to mitigate the impacts caused by new development. An impact fee is a monetary exaction other than a tax or special assessment that is charged by a local agency to a new development to cover costs of public facilities needed because of impacts created by the new development. Impact fees are typically paid by developers at the time of building permit issuance and cannot be used to correct existing deficiencies or for the ongoing operation and maintenance costs of these facilities. The City’s development impact fees covered by AB 1600 are the following:
• Capital Facilities Fees
• Fire Facilities Fees
• Traffic Impact Fees
• Parkland Fees
• Park Facilities Fees
Staff has prepared the attached consolidated Development Impact Fee Annual and Five-Year Report for the Period Ending June 30, 2025, which provides the information required by the Mitigation Act (as amended by AB 516, effective January 1, 2024). The information below was made available to the public as required by law.
Annual Report Information Requirements
(A) A brief description of the type of fee in the fund. (B) The rate of the fee.
(C) The beginning and ending balance in the fund for the fiscal year. (D) The amount of fees collected, and interest earned during the fiscal year. (E) 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.
(F) (i) 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. (ii) An identification of each public improvement identified in a previous report pursuant to clause (i) and whether construction began on the approximate date noted in the previous report. (iii) For a project identified pursuant to clause (ii) for which construction did not commence by the approximate date provided in the previous report, the reason for the delay and a revised approximate date that the local agency will commence construction. (G) 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. (H) The amount of refunds made [as pursuant to Government Code Section 66001(e)] due to sufficient funds being collected to complete financing on incomplete public improvements, and the amount of reallocation of funds made [as pursuant to Government Code Section 66001(f)] due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded. For any refunds made, the number of persons or entities identified to receive those refunds.
Five-Year Report Information Requirements
Council Staff Report (ID # 5591) Meeting of December 9, 2025 Updated: 12/4/2025 4:28 PM by Dina Lewis Page 3
(A) Identify the purpose to which the fee is to be put. (B) Demonstrate a reasonable relationship between the fee and the 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) of Government Code Section 66001.
(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.
FISCAL IMPACT: The recommended actions have no direct fiscal impact.
ENVIRONMENTAL REVIEW: The recommended action is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) in that it is an administrative or governmental funding mechanism or fiscal activity that does not involve a commitment to any specific project and is not a project that has the potential for causing a significant effect on the environment.
ATTACHMENTS:
• Draft Development Impact Fee Annual and Five-Year Report for Period Ending June 30, 2025
• Draft Reso Development Impact Fees Report and Findings
RECOMMENDATIONS:
1. Conduct a public hearing.
2. Approve the Development Impact Fee Annual and Five-Year Report for Period Ending June 30, 2025 (the “2025 Impact Fee Report”).
3. Adopt a resolution to make the statutory findings required by the Mitigation Fee Act.
4. Find that the recommended actions are exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3); administrative actions are not a project that has the potential for causing a significant effect on the environment.