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Receive the annual report and Capital Improvement Plan for the English Hills Transportation Impact Fee Program for FY2018/19; and Conduct a Public Hearing to consider adoption of a resolution which approves the updated English Hills Transportation Impact Fee Area Capital Improvement Plan and authorizing expenditures of $174,573 from the English Hills Area Road Improvement Reserve Account toward the Timm Road Improvement Project
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Published Notice Required? Yes __X__ No __ __
Public Hearing Required? Yes __X__ No _____
DEPARTMENTAL RECOMMENDATION:
The Department of Resource Management recommends that the Board of Supervisors:
1. Receive the annual report and Capital Improvement Plan for the English Hills Transportation Impact Fee Program for FY2018/19; and
2. Conduct a Public Hearing to consider adoption of a resolution which approves the updated English Hills Transportation Impact Fee Area Capital Improvement Plan and authorizing expenditures of $174,573 from the English Hills Area Road Improvement Reserve Account toward the Timm Road Improvement Project.
SUMMARY:
Each year, the Board is required by State law to review the English Hills Transportation Impact Fee Program (“Program”), adopted by the Board of Supervisors in 2001 (see Attachment A - Boundary Map). The Board must conduct a public hearing and adopt a resolution which approves the Capital Improvement Plan. The resolution must also include findings relative to expended and unexpended funds generated by the fee program. In FY2018/19, the fee program did not fund improvements, and ended the fiscal year with a balance of $174,573 (see Attachment B - Annual Report). In 2020, the Timm Road Improvement Project will include construction of shoulder, vertical curve, and intersection improvements, which are eligible expenses for Program funds. Staff’s recommendation is to expend the fund balance of $174,573 towards the improvement of Timm Road as planned in the English Hills Transportation Impact Fee Area Capital Improvement Plan (see Attachment C - Capital Improvement Plan).
State law also requires the Board of Supervisors to review the adequacy of the fee every 5 years. The last 5-year review was completed in 2017, with the County adjusting fees downward due to completion of improvements and to adjust the fee for secondary dwelling units.
FINANCIAL IMPACT:
Funds collected from this program are placed in a separate fund for future improvements to specific roads as outlined in the English Hills Transportation Impact Fee Area Capital Improvement Plan. It is anticipated that at build-out of the fee area, the total fees collected for the updated capital improvement plan will generate $6,476,717 in funding. The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2019/20 Adopted Budget. There is no fiscal impact to the General Fund.
DISCUSSION:
In 2001, the Board established a Transportation Impact Fee program for the English Hills area. The intent of the program is to collect funding from the construction of new residences in the English Hills area in order to mitigate the expected significant impact of development on the County’s road system (see Attachment D - Fact Sheet) in that area.
Section 66006 of the Government Code and section 11-470 of the Solano County Code require that a report be prepared each year containing specific information regarding the fees. The report was made available to the public, with advance posting along road corridors in English Hills area, the Department of Resource Management lobby, and the Board Chambers public noticing wall (see Attachment E - Public Notice). In addition, a public hearing must be held as part of the consideration of the updated Capital Improvement Plan. Notice of this hearing was published in the Vacaville Reporter and the Fairfield Daily Republic newspapers.
The Timm Road improvements, to be constructed in 2020, will provide improved sight distance, enhanced safety at intersections, shoulder widening for bicycle and vehicle safety, and upgraded signage and striping. Timm Road is in the English Hills Transportation Impact Fee Area Capital Improvement Plan, and the $1.7 million in estimated improvement costs are an eligible expense for the Program.
The Board reduced the Program fee in 2017 during the 5-year review primarily due to expansion in the zoning ordinance for secondary dwellings, which allows the fee to be spread over a larger number of units. Secondary dwellings that are built less than 1,000 square feet in size have a reduced fee set to 75% of the primary dwelling fee. These smaller residences typically have fewer bedrooms, and thus generate less traffic than the primary dwellings. Per the ordinance, the fees are adjusted every 6 months utilizing the Engineering News Record Construction Cost Index, as has been done since the impact fee area was created.
The proposed Capital Improvement Plan was reviewed by the Department and remains largely unchanged. Based on this information, it is recommended that the fee continue to be adjusted by the Engineering News Construction Cost Index, in the years between the 5-year reviews.
With the Board adoption of the resolution (F - Resolution), the Department will continue to implement the English Hills Transportation Impact Fee Area Capital Improvement Plan as project funds become available.
ALTERNATIVES:
The Board could choose to modify the proposed Capital Improvement Plan and/or not authorize expenditure of Program funds towards Timm Road. This is not recommended, since the proposed Capital Improvement Plan provides for the collection of fees and the improvement of roads within the fee area to bring the road system up to County adopted standards.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed this item and approved it as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION