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CC - CONSENT ITEM: Receipt and Acceptance of the Fiscal Year 2023-2024 Annual Reporting of Development Impact Fees per the State of California Mitigation Fee Act.
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Meeting Date: January 27, 2025
Contact Person/Dept: Michael Towler / Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [ ] No [X] General Fund: Yes [ ] No [X]
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (01/22/2025)
Department Approval: Lisa Soghor, Chief Financial Officer (01/17/2025)
RECOMMENDATION
Staff recommends the City Council receive and accept the Fiscal Year 2023-2024 Annual Reporting of Development Impact Fees per the State of California Mitigation Fee Act.
BACKGROUND
In 1987, the California State Legislature adopted AB1600, codified as California Government Code Sections 66000-66025 (“Mitigation Fee Act”), which sets certain legal and procedural parameters for the charging of development impact fees. This legislation went into effect January 1, 1989. A development fee is a monetary exaction, other than a tax or special assessment, that an applicant of an approved development project pays to defray a portion of all the cost of public facilities related to the project. The Mitigation Fee Act defines public facilities broadly to include public improvements, public services, and community amenities. Under the Mitigation Fee Act, local agencies that impose mitigation fees are required to prepare an annual Development Impact Fee Report as well as make certain findings every five years.
Culver City collects City Council authorized fees from developments to mitigate increased demands on public improvements, public services, and community amenities. This report transmits the attached Fiscal Year 2023-2024 Development Impact Fees Reports on the status of funds collected from the City’s development impact fees, including investments made in the last fiscal year, that qualify under the California Mitigation Fee Act. The California Government Code also requires the City Council to make findings every five years after a development fee is established. All five development impact fees are currently compliant with the five-year requirement.
DISCUSSION
Per Government Code Section 66006, collection of these fees requires separate funds or accounts to avoid any commingling of the fees with other revenues and funds of the local agency. Additionally, the local agency shall make the annual report available to the public within 180 days after fiscal year-end. The City properly posted the annual Mitigation Fee Act Report, as required by AB1600, on the City’s website on December 26, 2024 for the following fees:
New Development Impact Fee, CCMC 15.06.005
The purpose of this fee is to provide a method for the financing of public works capital improvements made necessary by permitting new development for nonresidential use. Fees from each new development shall be appropriated and disbursed only for street improvements, traffic controls, and traffic management projects which are made necessary by the development. The fee was established in 1983. Fiscal Year 2023-2024 activity included the annual street pavement rehabilitation project that addressed various residential and arterial streets, including Jefferson Blvd. and Sepulveda Blvd. to City limits/405 Freeway, and Centinela Blvd. from Bristol Parkway to City limits. Fiscal Year 2024-2025 programmed activity includes approximately $173,000 of budgeted projects including the continuation of ongoing minor repairs of streets and concrete, and for traffic engineering data collection, analysis, studies, and tools for the Neighborhood Traffic Management Plan. As part of the Fiscal Year 2025-2026 Proposed Budget process, staff will prioritize the eligible projects against available funds and return to Council in May 2025 for Council appropriation considerations.
Art in Public Places Program In-Lieu Fee, CCMC 15.06.100
The purpose of this fee is to ensure that the development of cultural and artistic assets is financed by those whose development and revitalization diminishes the availability of the community’s resources and contributes to community urbanization. The fee was established in 1988. Fiscal Year 2023-2024 activity included public art installations for Washington Boulevard and National Boulevard Transit Oriented Development (TOD) District, installation of new photographic murals on utility boxes in Downtown Culver City, restoration of Hanging Gardens and La Ballona, and ongoing projects focused on performing art grant awards. Fiscal Year 2024-2025 programmed activity includes approximately $2.9 million of budgeted projects including the continuation the public art installations for the TOD District, grants for the performing arts, temporary or permanent art installations in anticipation of the 2028 Olympics/Paralympics, commissioning of a new artwork to replace the fountain at the Police Station, and installation of a tiled mural along the Farragut Connector.
Residential Development Park Dedication & In-Lieu Parkland Fee, CCMC 15.06.300
The purpose of this fee is to mitigate the impact of development activity and ensure that the required three acres of community parks or recreation facilities for each 1,000 persons within the City is maintained. The fee shall be used solely for the acquisition of new and rehabilitation of existing community parks and recreation facilities. The fee was established in 1996. Fiscal Year 2023-2024 activity included ongoing repairs to facilities at all parks, completing upgrades at Lindberg Park, ongoing repairs and upgrades for sports areas and equipment, leveling the frequently shifting sports field at Culver City Park, and resurfacing and restriping of sports courts at various parks. Fiscal Year 2024-2025 programmed activity includes approximately $1.1 million of budgeted projects including the continuation of ongoing repairs to facilities at all parks including the upgrade of Veterans Memorial Park ballfield lighting, the development of Community Gardens at both Syd Kronenthal Park and Veterans Memorial Park, and hiring a consultant to evaluate compliance and create an action plan for California’s Model Water Efficient Landscape Ordinance (MWELO).
Mobility Improvement Fee, CCMC 15.06.500
The purpose of this fee is to provide a method for new development projects to pay their fair share towards the funding of the City’s identified mobility infrastructure and programs, intended to reduce vehicles miles traveled, and needed to support projected jobs and housing growth. The fee was established in 2021. The fund has accumulated a balance of approximately $2.9 million. The City’s Planning Department, Public Works Department and Transportation Department identified a Project List of vehicle miles traveled reducing mobility infrastructure improvement and programs needed to support the new development based on the 2045 interim jobs and housing growth forecasts. As part of the Fiscal Year 2025-2026 Proposed Budget process, staff will prioritize the infrastructure improvements and programs on the Project List and return to Council in May 2025 for Council appropriation considerations.
Affordable Housing Commercial Development Impact Fee, CCMC 15.06.600
The purpose of this fee is to facilitate the development and availability of affordable housing to a range of households with varying income levels within the City through creation and imposition of a fee on new commercial development. This fee will partially fund the need for affordable housing created by the workforce of this new commercial development. The fee was established in 2022. Revenues collected through June 30, 2024 total approximately $900,000. No public improvements have been programmed for Fiscal Year 2024-2025. As part of the Fiscal Year 2025-2026 Proposed Budget process, staff will identify eligible projects and will return to Council in May 2025 for Council appropriation considerations.
FISCAL ANALYSIS
There is no fiscal impact associated with the receipt and filing of the attached reports and adoption of the proposed resolution.
ATTACHMENTS
1. 2025-01-27_ATT1_FY 2023-24 New Development Impact Fee Report
2. 2025-01-27_ATT2_FY 2023-24 Art in Public Places Fee Report
3. 2025-01-27_ATT3_FY 2023-24 Park Dedication In-Lieu Fee Report
4. 2025-01-27_ATT4_FY 2023-24 Mobility Improvement Fee Report
5. 2025-01-27_ATT5_FY 2023-24 Affordable Housing Linkage Fee Report
MOTION
That the City Council:
Receive and accept the Fiscal Year 2023-2024 Annual Reporting of Development Impact Fees per the State of California Mitigation Fee Act.