Title
Updated Standard Forms for Reimbursement and Credit of Development Impact Fees for Construction of Panhandle Backbone Infrastructure and Public Facilities
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FileID
File ID: 2024-00548
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Location
Location: District 1, Represented by Councilmember Kaplan
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Recommendation
Recommendation: Adopt a Resolution: 1) approving updated standard forms for the Panhandle Reimbursement and Credit Agreement and Panhandle Fee Credits Certificate of Assignment; 2) authorizing the City Manager or the City Manager’s designee to execute standard-form Panhandle Reimbursement and Credit Agreements up to the total amount of the capital improvement cost estimates specified in Appendix B of the Finance Plan and execute Fee Credits Certificates of Assignment when appropriate; and 3) authorizing the City Manager or City Manager’s designee to approve minor, non-substantive changes to the Reimbursement and Credit Agreement and Fee Credits Certificate of Assignment upon approval of the City Attorney or City Attorney’s designee.
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Contact
Contact: Mary Jean Rodriguez, Senior Development Project Manager, (916) 808-1980, mrodriguez@cityofsacramento.org; Eric Frederick, Special Districts Manager, (916) 808-5129, efrederick@cityofsacramento.org; Department of Finance
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Presenter
Presenter: None.
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A - Reimbursement/Credit Agreement
4-Exhibit B - Panhandle Fee Credits Certificate of Assignment
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Description/Analysis
IssueDetail
Issue Detail: Development projects in the Panhandle Planned Unit Development (PUD) area are subject to the Panhandle Development Impact Fee (Fee), per Chapter 18.56 of the Sacramento City Code. The City collects the Fee for each building permit issued and utilizes such Fees to fund the construction of backbone infrastructure and public facilities needed to serve the PUD, as detailed in the Panhandle PUD Public Facilities Finance Plan and Development Impact Fee Nexus Study approved on May 31, 2022, per City Council Resolution No. 2022-0167, as it may be amended from time to time (Finance Plan). The City offers reimbursement of Fees paid or fee credits to developers that construct approved Fee-funded backbone infrastructure or public facilities or advance-fund such construction.
On October 3, 2023, the City Council approved a standard-form Panhandle Reimbursement and Credit Agreement (Reimbursement Agreement) and Panhandle Fee Credits Certificate of Assignment (Certificate) to use for reimbursement or credit of Panhandle PUD Fees (Resolution No. 2023-0303). City staff now desire to amend these standard-form templates to clarify certain terms to protect the City better and clean up references to the City Code, including terms related to issuing and using fee credits, noticing requirements, and public bidding requirements. The developer's requested changes were clarifications that City staff in Infrastructure Finance and the City Attorney’s Office found to be reasonable, and the staff does not believe these changes will put the City at additional risk. Staff are seeking City Council approval of the updated standard forms of the Reimbursement Agreement and Certificate attached to the resolution.
Standard forms are used to implement the Fee program to promote efficiency and uniformity in administration. Authorizing the City Manager or City Manager’s designee to execute standard-form Reimbursement Agreements without the City Council’s separate review and approval will avoid unnecessary expenditures of staff resources and costly project delays for developers. Standard forms have saved developers and the City resources and time in the North Natomas, Railyards, Delta Shores, and Jacinto Creek planning areas. Any Reimbursement Agreement that necessitates changes to the standard-form other than minor, non-substantive changes will be brought to the City Council for review and approval.
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PolicyConsiderations
Policy Considerations: Authorizing the City Manager or the City Manager’s designee to execute standard forms for specific projects complies with City Code Chapter 18.56 related to the reimbursement of backbone infrastructure and public facilities funded by Fee revenue. Authorizing the City Manager or the City Manager’s designee to execute Reimbursement Agreements up to the total amount of the capital improvement cost estimates specified in Appendix B of the Finance Plan also accords with City Code section 3.04.010(A)(5).
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EnvironmentalConsiderations
Environmental Considerations: Under the California Environmental Quality Act (CEQA) Guidelines, the approval of standard-form documents does not constitute a project because it merely creates a funding mechanism unrelated to a specific project and is therefore exempt from review (14 Cal. Code Regs. § 15378(b)(4)).
On July 3, 2018, by Resolution No. 2018-0280, the City Council certified the Environmental Impact Report and adopted the Mitigation Monitoring Program for the Panhandle Annexation and Planned Unit Development Project (P16-013) (State Clearinghouse No. 2016042074). This environmental review analyzed the potential impacts of the infrastructure that could be funded through the standard-form Reimbursement Agreement. However, infrastructure or public facility projects funded by the Fee will be evaluated under CEQA before construction is authorized.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecomendation
Rationale for Recommendation: Adopting the standard-form Panhandle Reimbursement Agreement and Certificate aligns with the Finance Plan's objective of promptly constructing or acquiring backbone infrastructure and public facilities. This will be achieved by avoiding unnecessary delays in negotiating the terms of specific Reimbursement Agreements and taking documents to the City Council for approval. This approach is consistent with other planning areas with financing plans and will help streamline the reimbursement and credit approval process. Furthermore, instituting standard rules and requirements will make the Fee administration process more efficient, providing greater consistency and certainty for developers and staff.
Authorizing the City Manager or the City Manager’s designee to execute the standard form Reimbursement Agreements will also ensure that the reimbursement of public infrastructure funded by development impact fee revenue complies with the City Code.
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FinancialConsiderations
Financial Considerations: Reimbursements or fee credits provided under the attached Reimbursement Agreement are funded by fee revenue collected as part of the Panhandle Fee program. Fees are collected solely within the boundaries of the Panhandle PUD and may be used only for the purposes outlined in the Finance Plan. There is no impact on the City’s General Fund.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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