DISCUSSION:
Over the years, the City has collected impact fees as a condition of approval for multiple development projects. These funds are designed for specific future improvements. On occasion, these future improvements are not able to be constructed in the year in which the fees were collected and therefore, the City must retain these funds.
Currently, the City is retaining funds deposited for the following 3 projects:
#1 1024 Florence Avenue – Fuentes Construction
On January 14, 2000, the City issued a building permit for the construction of a new single-family dwelling located at 1024 Florence Avenue. At that time, City sewer service was not available. As a condition of approval, the applicant was required to deposit a security for future improvements along its property including connection to the City sewer system, once available, and installation of curb, gutter and sidewalk improvements. On March 8, 2001, based on a cost estimate approved by the City Engineer at that time, a deposit in the amount of $2,500 was made into the City’s Trust Account.
City sewer service is not available in this area and therefore, connection cannot be made. The funds on deposit will remain in the Trust Account until City sewer service is available.
The monies are held in Fund 3510 – Securities for Future Improvements and are identified as Project No. 100782 – Florence Avenue Improvements. #2 Shadow Creek Apartments (3055 Floyd Avenue) – American Home Builders On April 19, 2004, the Planning Commission adopted Resolution No. 2004-21, approving a Final Development Plan for a 232-unit apartment complex on property located near the northeast corner of Floyd and Roselle Avenues. As a condition of approval, the applicant was required to deposit a security for the construction of its portion of the Beta Street extension on the north side of the property. (The additional funds for the Beta Street extension will be provided by the adjacent property when development occurs.) An Agreement for Contribution to Future Street Improvements was executed on September 2, 2005, between the developer, American Home Builders, and the City of Modesto. On September 2, 2005, based on cost estimates approved by the City Engineer at the time, a deposit in the amount of $29,393.72 was made into the City’s Trust Account.
Development has not yet occurred on the adjacent property; therefore, the additional funds required for the construction of the Beta Street extension are not yet available.
The deposit made by the developer in 2005 will remain in the Trust Account until development occurs on the adjacent property.
The monies are held in Fund 3510 – Securities for Future Improvements and are identified as Project No. 100783 – Shadow Creek Apartments. #25..
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City Council, December 13, 2022
FY 2021-22 Annual Report of Funds Held for Future Improvements
#3 Walgreens Pharmacy (3019 Floyd Avenue) – Best Modesto Partners On March 3, 2008, the Planning Commission adopted Resolution No. 2008-19, approving a Final Development Plan for the Walgreens Pharmacy located on the north side of Floyd Avenue and on the east side of Roselle Avenue. The existing driveway on Roselle Avenue provides access to the site; however, the driveway is located in a bus turnout and does not meet the 350-foot required distance from the intersection. The project was approved with the existing driveway in its current location until development of the property to the north occurs. The applicant entered into a Reciprocal Access Agreement with the City and, as a condition of approval, deposited funds for future improvements. Future improvements include the construction of the new on-site driveway and the reconstruction of the bus turnout and the off-site driveway access.
Development has not yet occurred on the property to the north. On September 30, 2008, Best Modesto Partners deposited $27,165 into the City’s Trust Account. The funds will remain in the Trust Account until development occurs on the neighboring parcel.
The monies are held in Fund 3510 - Securities for Future Improvements and are identified as Project No. 100784 – Floyd Avenue Walgreens.
Table 1 details the original deposit amounts for the above-mentioned projects, the total interest accrued to-date, the ending balance as of June 30, 2022, the total percentage of the improvement cost funded by the fee, as well as the estimated construction start and end dates, as required by California Government Code section 66006(b).
Table 1: Developer Deposits as of June 30, 2022
Date of Deposit Provided By Description
Original Deposit AmountInterest Accrued to DateEnd Balance (Includes
Interest)
% Funded
by Developer
% Funded
by Other
Estimated Construction
Start FY
Estimated Construction
End FY
03/08/2001 Fuentes Construction Security for Future Work - Frontage Improvements at 1024 Florence
$ 2,500.00 $ 460.07 $ 2,960.07 100% 0% Unknown Unknown
06/20/2005 American Home Builders
Security for Future Work - Construction of Beta Street on the north side of the Shadow Creek Apartments
$ 29,393.72 $ 9,808.34 $ 39,202.06 100% 0% Unknown Unknown 09/30/2008 Best-Modesto Partners
Security for Future Work - On-Site Driveway Improvements for future reciprocal access way at the Walgreens located on the corner of Floyd & Roselle and Bus TurnOut Reconstruction
$ 27,165.00 $ 4,468.32 $ 31,633.32 100% 0% Unknown Unknown FISCAL IMPACT:
Acceptance of the Fiscal Year 2021-22 Annual Report of Funds Held for Future Improvements has no fiscal impact to the General Fund.
COMMITTEE RECOMMENDATION:
The Annual Report of Funds Held for Future Improvements does not require a committee action to proceed to Council.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution accepting the Fiscal Year 2021-22 Annual Report of Funds Held for Future Improvements and making findings related to each security on file. #25..
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City Council, December 13, 2022
FY 2021-22 Annual Report of Funds Held for Future Improvements
Approved by:
Jaylen French,
Director of Community and Economic Development
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
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12/13/2022/CEDD/Hill/Item XX 1 2022-
MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION ACCEPTING THE FISCAL YEAR 2021-22 ANNUAL REPORT
OF FUNDS HELD FOR FUTURE IMPROVEMENTS AND MAKING FINDINGS
RELATED TO EACH SECURITY ON FILE
WHEREAS, California Government Code Sections 66000 and 66006 require that the City make certain information available to the public and findings relating to the necessity of collecting fees for new development; and
WHEREAS, the City is collecting impact fees as security for future improvements that will be needed as a condition of approval for new development; and WHEREAS, $2,500 in impact fees were paid by Fuentes Construction on March 8, 2001, as a condition of approval for Project #100782 located at 1024 Florence Avenue, Modesto, for future improvements including connection to the City sewer system and the installation of curb, gutter and sidewalk improvements; and WHEREAS, $29,393.72 in impact fees were collected from American Home Builders as a condition of approval for Project #100783 located at 3055 Floyd Avenue, Modesto, on June 20, 2005, for future improvements including the expansion of Beta Street to the north of the property; and
WHEREAS, $27,165 in impact fees were collected from Best Modesto Partners on September 30, 2008, as a condition of approval for Project #100784 located at 3019 Floyd Avenue, Modesto, for future improvements including the construction of an on-site driveway and the reconstruction of the nearby bus turnout and off-site driveway; and WHEREAS, it has been determined that full funding for the various improvements has not yet been received; and
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12/13/2022/CEDD/Hill/Item XX 2 2022-
WHEREAS, it has been determined by staff that the impact fees collected for all three projects should be retained until additional funding can be obtained; and WHEREAS, a public hearing notice was posted in the Modesto Bee on December 2, 2022, and
WHEREAS, a public hearing at the City Council in the Tenth Street Place Chambers located at 1010 Tenth Street, Modesto, California was set for December 13, 2022, to enable the public to have the opportunity to comment on the impact fees collected.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Modesto that it hereby accepts the Fiscal Year 2021-22 Annual Report of Funds Held for Future Improvements and making findings related to each security on file. That the revenue anticipated for the full development of infrastructure improvements required for these projects have not been fully collected to complete the financing of said improvements. It is presently anticipated that there will be no regular sources of funding to develop the required improvements apart from impact fees collected from neighboring properties.
1. That the anticipated dates for the full collection of fees is unknown at this time as impact fees are based on development activity which is not controlled by the City.
2. That the funding for the future improvements to include connection to the City sewer system and the installation of curb, gutter and sidewalk improvements located at 1024 Florence Avenue, Modesto, is not yet known, but there is still a need; and therefore fees should still be retained for these purposes.
3. That the timing for the future improvements including the expansion of Beta Street to the north of the property located at 3055 Floyd Avenue, Modesto, is not #25..
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12/13/2022/CEDD/Hill/Item XX 3 2022-
yet known, but there is still a need; and therefore fees should still be retained for these purposes.
4. That the timing for the future improvements including the construction of an onsite driveway and the reconstruction of the nearby bus turnout and off-site driveway located at 3019 Floyd Avenue, Modesto, is not yet known, but there is still a need; and therefore fees should still be retained for these purposes.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of December, 2022, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers: Name, Name, Name, Name, Name, Name, Mayor Name
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ATTEST: ______________________________
DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: __________________________________
JOSE M. SANCHEZ, City Attorney
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OFFICE OF THE CITY CLERK
NOTICE OF SPECIAL MEETING
Please take notice that a special Closed Session meeting of the Council of the City of Modesto has been called pursuant to Section 2-1.02 of the Modesto Municipal Code to be convened on
TUESDAY, DECEMBER 13, 2022 at 4:15 PM
and after the regularly scheduled meeting in the Tenth Street Place, Chambers Conference Room, Basement Level, 1010 Tenth Street, Modesto, California.
Any and all of the following agenda items are subject to action being taken by the Modesto City Council.
The business to be considered at said City Council meeting shall consist of a Closed Session concerning the following:
CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
One Case (Pursuant to Section 54956.9(d)(1) of the Government Code) Name of Case: City of Modesto, et al. v. The Dow Chemical Company, et al. (PCE)
Superior Court of the State of California
Case No: CGC-98-999345 and CGC-98-999643
December 9, 2022 BY ORDER OF THE CHAIR
/S/
Diane Nayares-Perez, CMC, City Clerk
Posted pursuant to Government Code Section 54956 on the bulletin board at Tenth Street Place on at by
date time signature
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