MEETING DATE: November 29, James Riley. Tom Gallup, Finance Manager Nancy Rau, Financial Analyst INTERIM DEPT. DIRECTOR: PREPARED BY:

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1 MEETING DATE: November 29, 2017 PREPARED BY: Tom Gallup, Finance Manager Nancy Rau, Financial Analyst INTERIM DEPT. DIRECTOR: James Riley DEPARTMENT: Finance CITY MANAGER: Karen P. Brust SUBJECT: Public hearing and Consideration of Resolution Regarding Findings Related to the Unexpended Fund Balance for Impact/Mitigation fees collected prior to 6/30/12 and acceptance of the Annual Report of Development Impact/Mitigation Fees for fiscal year ended June 30, 2017 as required by the California Mitigation Fee Act RECOMMENDED ACTION: Adopt Resolution Regarding Findings Related to the Unexpended Fund Balance for fees collected prior to 6/30/12 and accept the Annual Report of Development Impact/Mitigation Fees for fiscal year ended June 30, STRATEGIC PLAN: This agenda item applies to the Organizational Efficiency and Effectiveness focus area by maintaining the City s financial health through efficient allocations of resources. FISCAL CONSIDERATIONS: This item does not have a direct fiscal impact. BACKGROUND: The City imposes fees on new development, as authorized under the 1996 Mitigation Fee Act, California Government Code et seq., (the Act ). The Act governs the establishment and administration of development impact fees paid by new development projects for public facilities needed to serve new development. It also requires disclosure of certain financial information such as type of fee, amount of the fee, beginning and ending fund balance, fees collected, interest earned and the public improvements on which the fees were expended. There are two specific reporting requirements covered under this Act: 1) A periodic (five-year) report to make findings with respect to all unexpended mitigation fees and, 2) an annual report to make available certain information pertaining to mitigation fees. Both reports are included herein. The City collects fees for Park Development, Parkland Acquisition, Traffic Mitigation, Regional Arterial System, through the Regional Transportation Congestion Improvement Program (RTCIP), which is managed by SANDAG, Open Space Acquisition, Recreation Trails, Community Facilities, Fire Mitigation and Flood Control. All fees collected and interest earned Item 8E 1 of 19

2 thereon are deposited in separate special revenue funds, and are restricted to expenditure in accordance with the purpose of the fee and the requirements of the Act. ANALYSIS: The purpose of this agenda report is to provide development impact/mitigation fee information as required under California Government Code et seq. The required supplemental information is contained in Attachment 1, the Development Impact/Mitigation Fee Summary and provides the fund number, fund name, a brief description of the type of fee and amount of fee. The five-year report regulations require the City to adopt, by resolution, certain findings with respect to that portion of the fund remaining unexpended, whether committed or uncommitted as of the fifth fiscal year following the first deposit into those funds (Section 66001(d.). Any unspent, uncommitted funds must be refunded. The findings confirm that unspent funds have been committed toward completion of an eligible project. The five-year report for the period July 1, 2012 through June 30, 2017 is included as Attachment 2, the Status of Development Impact/Mitigation Fees (5 Year Findings Test). According to the report, Community Facilities, Fire Mitigation and Flood Control funds do not have unexpended funds for fees collected prior to June 30, Regional Arterial System (RTCIP) unexpended funds need to be committed in the Regional Transportation Improvement Program (RTIP) or expended within a seven-year period; therefore unexpended fees collected in FY are committed or spent by June 30, However, the City Council is required to make findings for fees with unexpended funds for the period July 1, 2012 through June 30, 2017 and July 1, 2010 through June 30, 2017 for RTCIP. Those findings are as follows: Park Development Fund 231 has an unexpended fund balance of $96,251 for fees collected prior to 6/30/12. All of the fund balance has been committed to the Standard Pacific Park Site Design (CP14A). Park Acquisition Fund 232 has an unexpended fund balance of $222,629 for fees collected prior to 6/30/12. All of the fund balance has been committed to the Habitat/Open Space Acquisition (CP05A) and the Standard Pacific Park Site Design (CP14A). Traffic Mitigation Fund 233 has an unexpended fund balance of $2,068,664 for fees collected prior to 6/30/12. All of the fund balance has been committed to the Traffic Safety and Calming (CS02F), Traffic Signals Modifications (CS02G), the Santa Fe Drive Improvements (CS07B), the La Costa Avenue Improvements (CS11C), the Encinitas Community Park Mitigation/Santa Scripps (CS12E), the Encinitas Community Park Offsite Improvements (CS13C), Encinitas Boulevard Safe Route to School Improvements (CS13E), the Highway 101 Emergency Repair Project (CX11F), the Birmingham Drive Complete Streets (CS17C) and the Circulation Element of the General Plan (WC16D). Open Space Acquisition Fund 235 has an unexpended fund balance of $82,207 for fees collected prior to 6/30/12. All of the fund balance has been committed to the Habitat and Open Space project (CP05A). Recreational Trail Development Fees Fund 239 has an unexpended fund balance of $9,335 for fees collected prior to 6/30/12. All of the fund balance has been committed to the Recreational Trails Development Project (CP00F). RTCIP Fund 234 has an unexpended fund balance of $34,680 for the fees collected prior to 6/30/10. All of the fund balance has been committed to North Coast Highway 101 Streetscape project (CS04D) Item 8E 2 of 19

3 The findings required by California Government Code 66001(d) are contained in Resolution The requirement, per Section for an annual update, is shown as Attachment 3, the Annual Report of Development Impact/Mitigation Fees for fiscal year ended June 30, All of the information utilized to prepare the reports and related resolution, comprising the findings required by California Government Code Sections and 66006, is contained in the public documentation available through the City Clerk s office. Documents include the Comprehensive Annual Financial Reports, the Six-Year Financial & Capital Improvement Plans, and the 2000, 2005 and 2015 Impact Fee Studies. ENVIRONMENTAL CONSIDERATIONS: The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a project under Section 15378(b)(5) of CEQA Guidelines. The action involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment. This item does not relate to the City s Climate Action Plan. ATTACHMENTS: 1. Development Impact/Mitigation Fee Summary 2. Status of Development Impact/Mitigation Fees (5 Year Findings Test) 3. Annual Report of Development Impact/Mitigation Fees for fiscal year ended June 30, , Resolution No , entitled, A resolution of the City Council of the City of Encinitas California to make certain findings as required by the 1996 Mitigation Fee Act Item 8E 3 of 19

4 Item 8E 4 of 19

5 ATTACHMENT 1 Development Impact/Mitigation Fee Summary Item 8E 5 of 19

6 Attachment 1 page 1 of 2 Cumulative 5 years 5 YEAR ANNUAL REPORT OF DEVELOPMENT IMPACT/MITIGATION FEES City of Encinitas, California July 1, 2012 to June 30, 2017 FY through FY Description Fund 231 Fund 232 Fund 233 Fund 234* Fund 235 Fund 236 Fund 237 Fund 238 Fund 239 TOTALS Park Parkland Traffic RTCIP( Regional Open Space Recreational Community Fire Flood Development Acquisition Mitigation Arterial System) Acquisition Trails Facilities Mitigation Control 1) Amount of the fee: $ 3, $ 6, $ 2, $ 2, $ $ $ $Range $429 -$675 $ 0.21/sq. ft. (Single Family Dwelling, existing lot) paved surface 2) Beginning Fund Balance (July 1, 2012) 546,251 1,143,296 3,228, ,818 82,207 20, ,296 5,706,060 Activity From to Fees Collected 1,035,117 2,398, , , ,832 44, , , ,866 6,484,740 Interest Earned 16,258 41,134 71,618 20,364 3, , ,843 Debt Service Transfer Out 0 (921,000) (921,000) Transfer Out to (101) General Fund (208,232) (318,830) 0 (527,062) Transfer Out to (119) Special Projects Fund Transfer In from 401 Fund (Return of Funds) , ,052 Capital Expenditures (450,000) 0 (1,232,266) 0 0 (10,980) 0 0 (348,558) (2,041,804) Ending Fund Balance (June 30, 2017) 1,147,625 2,661,479 3,073,823 1,245, ,033 54, ,275 8,939,829 Current Unspent Committed Funds in Approved Projects** 915,440 2,097,629 2,600, ,000 95,000 9, ,191 6,521,624 Uncommitted fees - June 30, , , , , ,033 45, ,084 2,418,206 3) Percentage of Improvements funded by 3% 0% 27% 0% 0% 95% 100% 100% 16% Mitigation Fees ( Average) 4) Transfer out of the Community Facilities Fees to reimburse the General Fund for the advancement of funding for the Library Development Fund (CMF96B); and transfer out of Fire Mitigation Fees annually to the 101 General Fund* for the Construction of the Fire Stations (CF04A/C/D). * 119 Special Projects Fund was merged with the General Fund in FY ) Project status and funding: Park Development (231) Parkland Acquisition (232) Traffic Mitigation (233) All projects have been completed except: 1 Standard Pacific Park Site Design (CP14A) is fully funded for the design and development of this project. This process will include workshops. Design began in Summer There are two open projects: 1 Habitat/Open Space Acquisition (CP05A) is an ongoing project and 2 Standard Pacific Park Site Design (CP14A) is fully funded for the design and development of this project. This process will include workshops. Design began in Summer All scheduled projects have been completed except: 1 Traffic Safety and Calming (CS02F) is a master project and ongoing; 2 Traffic Signals Modifications (CS02G) is a master project and ongoing; 3 Santa Fe Drive Improvements (CS07B)is in construction on the North side and the South side is in the process of hiring a consultant for revised design; 4 LaCosta Avenue Improvements (CS11C) traffic study is being revised to reflect potential LaCosta Avenue and Highway 101 modifications. Roadway classification may be modified depending on the outcome of the Circulation Element Update. Project scope, once determined, will be reviewed with the City of Carlsbad; 5 ECP Mitigation/Santa Scripps (CS12E) is incorporated in ECP (CS13A) and this is the City's financial contribution for traffic impacts; 6 ECP Offsite Improvements (CS13C) is Master Project for future traffic mitigation costs; 7 Encinitas Boulevard SR2S Improvements (CS13E) construction and educational components are completed. Project will close after the grant process is finalized; 8 Hwy 101 Emergency Repair Projects (CX11F) is complete and awaiting for full reimbursement from FHWA ER Grant; and 9 Circulation Element of General Plan (WC16D), the Coastal Mobility and Livability Study will be used as a foundation for the preparation of the Circulation Element Update of the General Plan, upon completion and RFP will be developed. *RTCIP (Regional Arterial System) (234) Open Space Acquisition (235) Recreational Trails (236) The fees collected must be spent or committed in the RTIP within seven years. This differs from the other Development/Mitigation Fees in which they must be spent or committed within five years of collection. Revenue received in FY 2010 in the amount of $34,650 needs to be spent or committed in the RTIP (SANDAG) by June 30, Project North Coast Highway 101 Streetscape (CS04D) has an appropriated budget of $376,000 and $280,000 has been committed in the RTIP, MPO ID: ENC20 in FY2017. There is only one open project: 1 Habitat/Open Space Acquisition (CP05A) is an ongoing project. These fees are committed to the Recreation Trails Master Plan Implementation Project (CP00F) Item 8E 6 of 19

7 Attachment 1 page 2 of 2 Cumulative 5 years 5 YEAR ANNUAL REPORT OF DEVELOPMENT IMPACT/MITIGATION FEES City of Encinitas, California July 1, 2012 to June 30, 2017 FY through FY ) Project status and funding continued: Community Facilities (237) Fire Mitigation (238) Flood Control and Drainage (239) Library Development Fund Project (CMF96B) completed and the General Fund advanced funding is being reimbursed by the facilities fee being collected. All uncommitted funds are designated for reconstruction of Fire Stations 2 and 3 (CF04A and CF04C). Construction for Fire Station 3 and Fire Station 2 are complete. Fire Station 1 is on hold. All scheduled projects are substantially complete except 1 Storm Drain Repair (CD05E), which is an ongoing Master Project; 2 El Camino Real Channel Storm Drain Repairs/Improvements (CD06D) construction is complete. Project requires a 5 year monitoring period (CD17B). Project will be closed after FEMA sends Cal OES a Notification of Project Closure. This can take 3-6 months from September 2017; 3 5 Year Habitat-Biological & Monitoring (CD17B) is the maintenance and monitoring of the El Camino Real Channel Storm Drain began in June 2016 and is for 5 years; and 4 South Leucadia/Vulcan Ave Storm Drain Project (WD16A) Preliminary LID study completed in September Proposals for project design work to be completed by end of Description Fund 231 Fund 232 Fund 233 Fund 234* Fund 235 Fund 236 Fund 237 Fund 238 Fund 239 Park Parkland Traffic RTCIP( Regional Open Space Recreational Community Fire Flood Development Acquisition Mitigation Arterial System) Acquisition Trails Facilities Mitigation Control Fees collected as of June 30, 2012 spent within the 5 year requirement: Ending Fund June 30, ,251 1,143,296 3,228,878 34,680 82,207 20, ,296 Expenditures and Transfers June 30,2017 (450,000) (921,000) (1,160,214) 0 0 (10,980) (208,232) (318,830) (348,558) Total Not June 30, , ,296 2,068,664 34,680 82,207 9,335 (208,232) (318,830) (44,262) **Total June 30, ,440 2,097,629 2,600, ,000 95,000 9, ,191 Total June 30, 2017 (819,189) (1,875,333) (531,365) (341,320) (12,793) (0) (208,232) (318,830) (472,453) *RTCIP Fees - exception to the 5 year finding - these funds need to be committed in the RTIP (SANDAG) or spent in 7 years - FY fees in the amount of $34,680 collected must be spent or committed in the RTIP (SANDAG) **Beginning in FY , the committed fees have been transferred from the Mitigation Funds to the 401 Capital Improvement Funds Item 8E 7 of 19

8 Item 8E 8 of 19

9 ATTACHMENT 2 Status of Development Impact/Mitigation Fees (5 Year Findings Test) Item 8E 9 of 19

10 STATUS OF DEVELOPMENT IMPACT/MITIGATION FEES (5 YEARS FINDINGS TEST) City of Encinitas, California July 1, 2012 to June 30, 2017 Attachment 2 page 1 of 4 Description Fund 231 Fund 232 Fund 233 Fund 234* Fund 235 Fund 236 Fund 237 Fund 238 Fund 239 TOTALS Park Parkland Traffic RTCIP( Regional Open Space Recreational Community Fire Flood Development Acquisition Mitigation Arterial System) Acquisition Trails Facilities Mitigation Control Fees collected as of June 30, 2012 spent within the 5 year requirement: Ending Fund June 30, ,251 1,143,296 3,228,878 34,680 82,207 20, ,296 5,359,922 Expenditures and Transfers Out ending June 30, , ,000 6, ,980 28,872 35,066 17,420 1,469,648 Expenditures and Transfers Out ending June 30, , ,944 98,737 11, ,568 Expenditures and Transfers Out ending June 30, , ,086 70,259 61, ,459 Expenditures and Transfers Out ending June 30, , ,286 61,748 91, ,811 Expenditures and Transfers Out ending June 30, , ,044 53, , ,330 Total Expenditures for fees collected ending June 30, , ,000 1,232, , , , ,558 3,417,814 Total June 30, , ,296 1,996,612 34,680 82,207 9,335 (208,232) (318,830) (44,262) 1,942,108 Transfers Out to 401/402 CIP Fund ending June 30,2016** 915,440 2,097,629 2,600, ,000 95,000 9, ,191 0 * The RTCIP is required to be either spent or committed in the RTIP (SANDAG) within a seven year period. Therefore the FY revenue of $34,680 received is required to be committed or spent. $376,000 has been appropriated and $280,000 has been programmed in the RTIP (SANDAG)in FY for CS04D, North Coast Hwy 101 Streetscape. **Beginning in FY , the committed fees have been transferred from the Mitigation Funds to the 401/402 Capital Improvement Funds. This is the amount committed for each fund. g, p y p p ( ), q ( ), g ( ), p p A) Acquisition Fund (235), Recreational Trails Fund (236) and Flood Control Fund (239). Fund 231 remaining $96,251 is committed on one projects listed in B, Fund 232 remaining $222,296 has been committed on the projects listed in C, Fund 233 remaining $2,068,664 has been committed on the ten projects listed in D, Fund 235 remaining $82,207 is committed on the project listed in E and Fund 236 remaining $9,335 is committed on the project listed in F. *Fund 234 (RTCIP) $380,818 has been collected, however, only $34,680 from the first year FY must be spent or committed on the RTIP. Revenue received in FY 2010 is required to be either committed in the RTIP or spent within 7 years which is June Beginning in FY2017, 280,000 is committed in the RTIP on the project listed in G; **Negative balances indicate the fees collected as of June 30, 2012 have been spent within the 5 year requirement. B) C) D) Project Committed Funds Anticipated Start Date Standard Pacific Park Site Design (CP14A) 915,440 yes Oct ,440 Project Committed Funds Anticipated Start Date Habitat/Open Space Acquisition (CP05A) 293,069 no Ongoing Standard Pacific Park Site Design (CP14A) 1,804,560 Yes Oct ,097,629 Project Committed Funds Projects Fully Funded? Projects Fully Funded? Projects Fully Funded? Anticipated Start Date Traffic Safety and Calming (CS02F) 34,222 no Ongoing Traffic Signals Modifications (CS02G) 46,235 no Ongoing Santa Fe Drive Improvements (CS07B) 414,947 yes Project has already begun La Costa Avenue Improvements (CS11C) 1,239,306 yes Project has already begun Encinitas Community Park Mitigation/Santa Scripps (CS12E) 38,000 yes Financial contribution Encinitas Community Park Offsite Improvements (CS13C) 186,124 yes TBD Status Community outreach for design begins in October Status This is an ongoing Master Project Community outreach for design begins in October Status This is an ongoing Master Project This is an ongoing project Master Project This project is in construction Traffic study is being revised to reflect potential La Costa Avenue at Highway 101 modifications. City's financial contribution for traffic impacts Master Project for future traffic mitigation costs Item 8E 10 of 19

11 STATUS OF DEVELOPMENT IMPACT/MITIGATION FEES (5 YEARS FINDINGS TEST) City of Encinitas, California July 1, 2012 to June 30, 2017 Attachment 2 page 2 of 4 Encinitas Boulevard Safe Route to School Improvements (CS13E) 39,567 Hwy 101 Emergency Repair Project (CX11F) 1,628 Birmingham Drive-Complete Streets (CS17B) 300,000 Project has already begun Project has already begun Project has already begun Circulation Element of General Fund (WC16D) 300,000 yes May ,600,029 yes yes yes Construction and educational components completed. Finalizing grant. Project is complete. Finalizing grant. Project is in design. The Coastal Mobility and Livability Study (CMLS) will be used as a foundation for the preparation of the Circulation Element Update of the General Plan. Upon completion of the CMLS, an RFP will be developed. E) Project Committed Funds Projects Fully Funded? Anticipated Start Date Status Habitat/Open Space Acquisition (CP05A) 95,000 no Ongoing 95,000 This is an ongoing Master Project F) Project Committed Funds Projects Fully Funded? Anticipated Start Date Status Recreational Trails Development Fund (CP00F) 9,335 no Ongoing Project 9,335 This is an ongoing project Master Project G) Project Committed Funds North Coast Highway 101 Streetscape (CS04D) 280, ,000 Projects Fully Funded? yes Anticipated Start Date Project has already begun Status Project is in design (Programmed in the RTIP) Item 8E 11 of 19

12 CIP Projects Total Expenditures/Transfers FY through FY Attachment 2 page 3 of 4 Project Total Fee Other Average % Current Number Project Description Expenses Funding Funding Fee Fund Status Park Development (231) Mitigation Fees CP02D Hall Property EIR, Design,& Development 70, , % Project Complete-2015 CP04B Moonlight Beach Environment, Design & Development 41, , % Project Complete-2015 CP13A Encinitas Community Park Construction 18,817, ,000 18,367, % Project Complete-2017 CP14A Standard Pacific Park Site Design % Funding for the design has been approved as part of the FY budget. This additional funding fully funds the design and development of this project. It is anticipated the 3.14 acre park will include facilities and equipment found at neighborhood parks. The type of facilities to be included at the site will be determined during the planning and design process, including community workshops. Began design Summer 2017 Total ,929, ,000 18,479, % Parkland Acquisition (232) Mitigation Fees CP05A Habitat/Open Space Acquisition (Transfers Out to Debt % Ongoing Service) CP14A Standard Pacific Park Site Design % Funding for the design has been approved as part of the FY budget. This additional funding fully funds the design and development of this project. It is anticipated the 3.14 acre park will include facilities and equipment found at neighborhood parks. The type of facilities to be included at the site will be determined during the planning and design process, including community workshops. Began design Summer 2017 Total % Traffic ( 233) Mitigation Fee CS02F Traffic Safety and Calming 82,688 15,778 66, % Master Project - On going CS02G Traffic Signal Modifications 80,162 53,765 26, % Master Project - On going CS04B I-5 Encinitas Boulevard 217,957 17, , % Caltrans has approved the Project Study Report. Project closed at 1 st Qtr. CS07B Santa Fe Drive/I-5 MacKinnon Improvements 1,725,134 12,053 1,713, % North side in construction. South side - hiring consultant for revised design. CS08C Improvement to Leucadia Boulevard/North Coast Highway 2,137 (1,853) 3, % Closed FY CS08E Santa Fe Alignment Study % This project is complete. Closed at 3rd Quarter-2015 CS09C Manchester Avenue Realignment Study % This project is complete. Closed EOY 2015 CS11C La Costa Avenue Improvements 69,144 38,325 30, % Traffic study is being revised to reflect potential La Costa Avenue at Highway 101 modifications. Roadway Classification may be modified depending on the outcome of the Circulation Element Update. Project scope, once determined, will be reviewed with the City of Carlsbad. CS12E Encinitas Community Park Mitigation/Santa Scripps % City's financial contribution for traffic impacts. CS13C ECP Offsite Improvements 563, , % Master Project for future traffic mitigation costs. CS13E Encinitas Boulevard SR2S Improvements 623, , , % Construction is complete. Project will be closed after the grant process is finalized. CS15E Saxony Road Traffic Safety/Calming 131,138 76,240 54, % Project completed. Closed at 3 rd Qtr. CS16D Paul Ecke Central Improvements 389, , , % Project completed. Closed at Midyear CS97B Encinitas Boulevard Alignment Study % The study will be reinitiated at a future date. Closed at 3rd Quarter 2015 CX11F Highway 101 Emergency Repair Project 749, , , % Project is complete. Project will be closed in the fourth quarter. Awaiting full reimbursement from FHWA ER Grant. WC16D Circulation Element of General Plan % Funding transferred here from Roadway Master Plan project (WC16B). The Coastal Mobility and Livability Study will be used as a foundation for the preparation of the Circulation Element Update of the General Plan. Upon completion of the CMLS, an RFP will be developed. Total 233 4,634,980 1,232,266 3,402, % RTCIP (Regional Arterial System) (234) Fee CS04D North Coast Highway 101 Streetscape 278, , % Addressing Planning Department comments and preparing Draft Environmental Impact Report response to comments. 278, , % Item 8E 12 of 19

13 CIP Projects Total Expenditures/Transfers FY through FY Attachment 2 page 4 of 4 Project Total Fee Other Average % Current Number Project Description Expenses Funding Funding Fee Fund Status Open Space (235) Impact Fees CP05A Habitat/Open Space Acquisition % Ongoing Total % Recreation Trails (236) Mitigation Fees CP00F Recreation Trails Master Plan Implementation Project 11,513 10, % According to the Trails Master Plan, there are 80 miles of trails and 40.5 miles are currently developed. Funding was approved for the four trails during the FY 2017/18 - FY six year CIP budget process. Total ,513 10, % Community Facilities (237) Impact Fee Transfers Out to 237 Fund 208, , % These fees are transferred to the GF to reimburse it for the funding of the Library Total Expenditures (includes Transfers Out) , , % Fire (238) Mitigation Fees CF04A Fire Station Construction % Umbrella Project-Project closed in FY 2015 CF04B Fire Station #1 Construction % Closed FY 2014 CF04C Fire Station #2 Construction 1,890, ,890, % Station complete - Project Closed Fire Station Construction (Transfer Out to General Fund) 318, , % These fees are transferred to the GF to reimburse it for the funding of the Fire Stations Total Expenditures (includes Transfers Out) 238 2,209, ,830 1,890, % Flood Control (239) Mitigation Fees CD05E Storm Drain Repair 761, , , % Ongoing Master Repair Project CD06A 4th Street Storm Drain % Defunded by Council-2014 CD06D El Camino Real Channel Storm Drain Repairs/Improv 1,329,809 90,587 1,239, % The construction is completed. Project also requires a 5 year monitoring period (CD17B). Project will be closed after FEMA send Cal OES a Notification of Project Closure. This could take 3-6 months from CD07C ENTMP-1 Rubin/Summit/West 6,300 2,700 3, % Project Closed FY 2014 CD09A Cardiff Town Ctr Storm Drain Repairs % The study will be reinitiated at a later date if it is determined that there is a need. Closed Project 3rd Quarter-2015 CD17B 5 Year Habitat-Biological & Monitoring 35,769 35, % The maintenace and monitoring of the El Camino Real Channel Storm Drain is scheduled to begin in October 2016 and is for 5 years. Transfer from CD06D. WD16A So Leucadia/Vulcan Avenue Storm Drain Project 101, , % Design complete in Spring No funding has been established for construction. Total 239 2,234, ,558 1,885, % Item 8E 13 of 19

14 ATTACHMENT 3 Annual Report of Development Impact/Mitigation Fees for fiscal year ended June 30, Item 8E 14 of 19

15 Attachment 3 page 1 of 3 ANNUAL REPORT OF DEVELOPMENT IMPACT/MITIGATION FEES City of Encinitas, California Fiscal Year Ended June 30, 2017 California Gov't Code Section 66006, as amended by SB 1693 in 1996, requires annual reporting of of the following information related to impact/mitigation fees assessed and collected: Description Fund 231 Fund 232 Fund 233 Fund 234* Fund 235 Fund 236 Fund 237 Fund 238 Fund 239 TOTALS Park Parkland Traffic RTCIP( Regional Open Space Recreational Community Fire Flood Development Acquisition Mitigation Arterial System) Acquisition Trails Facilities Mitigation Control 1) Amount of the fee: $ 3, $ 6, $ 2, $ 2, $ $ $ $Range $429 -$675 $ 0.21/sq. ft. (Single Family Dwelling, existing lot) paved surface 2) Beginning Fund Balance (July 1, 2016) 988,134 2,399,894 3,044,550 1,143, ,153 47, ,029 8,458,381 Fees Collected 153, , ,242 94,233 16,508 6,328 22,044 53,020 67, ,371 Interest Earned 6,363 15,148 19,351 7,114 1, ,762 53,408 Debt Service Transfer Out Transfer Out to (101) General Fund (22,044) (53,020) 0 (75,064) Transfer Out to (119) Special Projects Fund Transfer In from 401/402 Fund (Return of Funds) , ,052 Capital Expenditures 0 0 (203,371) (165,947) (369,317) Ending Fund Balance (June 30, 2016) 1,147,625 2,661,479 3,073,823 1,245, ,033 54, ,275 8,939,829 Current Unspent Committed Funds in Approved Projects** 915,440 2,097,629 2,600, ,000 95,000 9, ,191 6,521,624 Uncommitted fees - June 30, , , , , ,033 45, ,084 2,418,206 3) Percentage of Improvements funded by 0% 0% 37% 0% 0% 0% 100% 100% 54% Mitigation Fees ( Average) 4) Transfer out of the Community Facilities Fees to reimburse the General Fund for the advancement of funding for the Library Development Fund (CMF96B); and transfer out of Fire Mitigation Fees annually to the 101 General Fund for the Construction of the Fire Stations (CFF04A/C/D-H.T.E.)(CF04A/C/D-Munis). Transfer into the Traffic Mitigation Fee Fund for closure of I-5 Encinitas Boulevard (CS04B) and Saxony Road Traffic Safety/Calming (CS15E). 5) There were three inter-fund transfers made in FY , (22,044) (53,020) 0 (3,013) 6) Based on 5 year findings no refunds were issued. * RTCIP must be spent or committed in the RTIP within seven years of collection. This differs from the other Development/Mitigation Fees in which they must be spent or committed within five years of collection. The RTCIP has $376,000 appropriated and $280,000 committed in the RTIP (SANDAG). **Beginning in FY , the committed fees have been transferred from the Mitigation Funds to the 401 Capital Improvement Funds Item 8E 15 of 19

16 CIP Projects Total Expenditures/Transfers FY Attachment 3 page 2 of 3 Project Total Fee Other Average % Current Number Project Description Expenses Funding Funding Fee Fund Status 231 % of improvements funded by 231 mitigation fees Park Development 2017 CP13A Encinitas Community Park Construction 416, , % Closed CP14A Standard Pacific Park Site Design % Funding for the design has been approved as part of the FY budget. This additional funding fully funds the design and development of this project. It is anticipated the 3.14 acre park will include facilities and equipment found at neighborhood parks. The type of facilities to be included at the site will be determined during the planning and design process, including community workshops. Began design Summer , , % CIP reports June 30, , % of improvements funded by 232 mitigation fees Parkland Acquisition 2017 CP05A Habitat/Open Space Acquisition % Ongoing CP14A Standard Pacific Park Site Design % Funding for the design has been approved as part of the FY budget. This additional funding fully funds the design and development of this project. It is anticipated the 3.14 acre park will include facilities and equipment found at neighborhood parks. The type of facilities to be included at the site will be determined during the planning and design process, including community workshops. Began design Summer CIP reports June 30, ,097, % of improvements funded by 233 mitigation fees Traffic Mitigation Fee % CS02F Traffic Safety and Calming 34,728 4,211 30, % Master Project - Ongoing. CS02G Traffic Signal Modifications 27,119 27, % Master Project - Ongoing. CS04B I-5 Encinitas Blvd % Caltrans has approved the Project Study Report. Closed at 1 st Qtr. CS07B Santa Fe Drive/I-5 Mackinnon Improvements % North side in construction. South side - hiring consultant for revised design. CS11C La Costa Avenue Improvements 7,899 3,950 3, % Traffic study is being revised to reflect potential La Costa Avenue at Highway 101 modifications. Roadway Classification may be modified depending on the outcome of the Circulation Element Update. Project scope, once determined, will be reviewed with the City of Carlsbad. CS12E ECP Park Mitigation/Santa Scripps % City's financial contribution for traffic impacts. CS13C ENC Offsite Improvements % Master Project for future traffic mitigation costs. CS13E Encinitas Blvd SR2S Improvements 1,620 1, % Construction is complete. Project will be closed after the grant process is finalized. CS15E Saxony Rd Traffic Safety/Calming 42,174 30,244 11, % Project completed. Closed at 3 rd Qtr. CS16D Paul Ecke Central Improvements 362, , , % Project completed. Closed at Midyear CS17B Birmingham Drive - Complete Streets % Michael Baker design contract underway. Public Workshop scheduled for November 13, CX11F Hwy 101 Emergency Repair Project 71,087 36,190 34, % Project is complete. Project will be closed in the fourth quarter. Awaiting full reimbursement from FHWA ER Grant. WC16D Circulation Element of General Plan % Funding transferred here from Roadway Master Plan project (WC16B). The Coastal Mobility and Livability Study will be used as a foundation for the preparation of the Circulation Element Update of the General Plan. Upon completion of the CMLS, an RFP will be developed. CIP reports June 30, ,300, % of improvements funded by 234 mitigation fees RTCIP (Regional Arterial System) Fee , , , % CS04D North Coast Highway 101 Streetscape 278, , % Addressing Planning Department comments and preparing Draft Environmental Impact Report response to comments. 278, , % CIP reports June 30, , Item 8E 16 of 19

17 CIP Projects Total Expenditures/Transfers FY Attachment 3 page 3 of 3 Project Total Fee Other Average % Current Number Project Description Expenses Funding Funding Fee Fund Status 235 % of improvements funded by 235 mitigation fees Open Space Impact Fees 2017 CP05A Habitat/Open Space Acquisition % Ongoing % CIP reports June 30, , % of improvements funded by 236 mitigation fees Recreation Trails Mitigation Fees 2017 CP00F Recreation Trails Master Plan Implementation % According to the Trails Master Plan, there are 80 miles of trails and 40.5 miles are currently developed. Funding was approved for the four trails during the FY 2017/18 - FY six year CIP budget process % CIP reports June 30, , % of improvements funded by 237 mitigation fees Community Facilities Impact Fee 2017 Transfers Out to 237 Fund 22,044 22, % These fees are transferred to the GF to reimburse it for the funding of the Library. 22,044 22, % CIP reports June 30, % of improvements funded by 238 mitigation fees Fire Mitigation (Annual transfer to reimburse the GF) 2017 Fire Station Construction (Transfer Out to General Fund) 53,020 53, % These fees are transferred to the GF to reimburse it for the funding of the Fire Stations. CIP reports June 30, % of improvements funded by 239 mitigation fees Flood Control ,020 53, % CD05E Storm Drain Repair 130,530 50,868 79, % On-going Master Repair Project. CD06D El Camino Real Channel Storm Drain Repairs/Improvement 58,614 (987) 59, % The construction is complete. The 90 day monitoring period will be completed by the end of September. Project also requires a 5 year monitoring period. CD17B 5 Year Habitat-Biological & Monitoring 35,769 35, % The maintenance and monitoring of the El Camino Real Channel Storm Drain is scheduled to begin in October 2016 and is for 5 years. Transfer from CD06D. WD16A South Leucadia/Vulcan Avenue Storm Drain Project 80,296 80, % Preliminary LID study completed in September Proposals for project design will be received on September 15, Design work to be completed by end of Construction will be dependent on estimated costs and available funding. 305, , , % CIP reports June 30, , Item 8E 17 of 19

18 ATTACHMENT 4 Resolution No , entitled A Resolution of the City Council of the City of Encinitas California to make certain findings as required by the 1996 Mitigation Fee Act Item 8E 18 of 19

19 RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS CALIFORNIA TO MAKE CERTAIN FINDINGS AS REQUIRED BY THE 1996 MITIGATION FEE ACT WHEREAS, the City of Encinitas is required to make certain findings with respect to the unexpended fund balance of certain development fee funds pursuant to California Government Code et seq; WHEREAS, the information to make the required findings can be found in the Annual Financial Reports, the Six Year Financial & Capital Improvement Plans, and the 2000, 2005 and 2015 Impact Fee Studies on file with the City Clerk; and WHEREAS, these findings need to be made in conjunction with the public Information required by Code et seq. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Encinitas as follows: 1. That the above recitations are true and correct. 2. That the following findings are made with respect to that portion of the Development Impact/Mitigation Fee funds remaining unexpended whether committed or uncommitted. a) That the purpose to which the fees are to be put has been identified. b) That a reasonable relationship has been demonstrated between the fee and the purpose for which it has been charged. c) That all sources and amounts of funding anticipated to complete financing on incomplete improvements have been identified. d) That the approximate dates on which the funding referred to above is expected to be deposited into the appropriate fund has been designated. 3. That these findings are made based on information contained in the following Public documents: the City s Annual Financial Reports, the City s Five Year Financial & Capital Improvement Plans and the 2000, 2005 and 2015 Impact Fee Studies. PASSED, APPROVED AND ADOPTED by the City Council of the City of Encinitas this 29 th day of November 2017 by the following vote to wit: AYES: NAYS: ABSENT: ATTEST: Catherine Blakespear, Mayor Kathy Hollywood, City Clerk Item 8E 19 of 19