CC 2013-02-12_08.c. Annual Adjustment of Dev Impact FeesMEMORANDUM
TO: CITY COUNCIL
FROM: RYAN CORNELL, INTERIM DIRECTOR OF ADMINISTRATIVE
SERVICES ~
SUBJECT: CONSIDERATION OF ANNUAL ADJUSTMENT OF DEVELOPMENT
IMPACT FEES
DATE: FEBRUARY 12, 2013
RECOMMENDATION:
It is recommended the City Council adopt the attached Resolution. approving the annual
adjustment to the City's Development lmpaGt Fees.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The adoption of the attached Resolution will increase the Development Impact Fees
charged for new development projects in 2013. The revenue generated from this
increase is dependent on the amount of new development in the community during the
coming year.
No or minimal future staff time is projected.
BACKGROUND:
Section 3.36.040 of the Arroyo Grande Municipal Code states that the fees shall be
adopted by resolution and shall be adjusted each year in accordance with the percentage
increase based on changes in the annual average Engineering News Record (ENR)
Construction Cost Index (CCI).
ANAYL YSIS OF .ISSUES:
The calculation shown below provic:les documentation that a 2.62% increase in the ENR
CCI warrar:its an adjustment in the Gity's Development Impact Fees.
The calculation adjusts the fees as follows:
Factor= 1 +Current Index -Base Index For Date of Adoption
Base Index For Date of Adoption
The ealculation is as follows:
1.0262 = 1 + 9,308 -9.070
9,070
Item 8.c. - Page 1
CITY COUNCIL
CONSIDERATION OF ANNUAL ADJUSTMENT OF IMPACT FEES
FEBRUARY 1.2, 2013
PAGE2
.ALTERNATIVES.:
The following alternatives ar~ provides for City Council cor:isid.eration:
Approve staff recommendation to increase Impact Fees;
Do not approve staff recommendation and retain current fee structure;
Provide direction to staff.
ADVANTAGES:
By approving the recommended fees, the City will be able to maximize revenue by
recovering the estimated cost of providing services to new development area.
DISADVANTAGES:
The only disadvantage identified in relation to this recommendation is an increased cost
to new development.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS: .
The .Agenda was posted in front of City Hall on Thursday, February 7, 2013. The
Agenda and report were posted on the c·ity's website on Friday, February 8, 2013. No.
public c0mments were received.
Item 8.c. - Page 2
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE ADJUSTING DEVELOPMENT
IMPACT FEES BY THE CHANGE IN THE ENGINEERING
NEWS RECORD CONSTRUCTION COST INDEX
WHEREAS, pi:irsuant to Section 3'.3'6;.040 of the Municipal Code, Developmient lmpacf
Fe-es are to be adjusted annually by modifying the. adopted value U-p or down lo
conformance with the Engineering News Record Construction Cost Index.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo
Grande hereby adopts the fees and fee schedules set forth in Exhibit "A" attached
hereto and incorP'orated herein by this reference. This Resolution shall take effect sixty
(60) days after its adoption, per Government Code Section 66017.
On motion of Council Member seconded by Council Member
________ <;ind on the following roll call vote, to wit:
AYES:
NOE.S:
AB_SENT:
the foregoing Resolutic:m was passed and adopted this __ day .of February, 2013.
Item 8.c. - Page 3
RESOLUTION NO.
PAGE2
TONY FERRARA, MA YO.R
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN .ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.c. - Page 4
EXHIBIT "A"
Definitions:
Fees:
Development Types -Resic:tential and commercial development divided into sub-
categories.
Units of Development -A standard meas.ure of the cost to provide services. The
acre is the fundamental unit me.asure, which is divided 'into a smaller component,
the dwelling unit (DU) ..
Asset Cost Per Acre -The calculated cost to provide additional services/facilities
to new development.
Calls. Per Unit -The number o.f yearly additional poliGe calls gener:ated by new
development.
Facility Cost Per Call -The cost per call to expand current police facilities to
accommodate new development.
Persons Per Unit -The number of persons expected to reside in the unit of
development.
Costs Per Capita -The cost of new or additions to the current community center,
on a per person basis, to maintain the current level of service of recreation
facilities.
Impact Fee Per Unit -The fee to be levied per unit of development in order to
recover future cost .of new or expandecj facilities.
A person seeking to construct a residential or non-residential development project shall pay
Development Impact Fees for fire protection, police facilities, traffic signalization, transportation
facilities, community centers, park improvements, and water facilities based upon the following
schedule:
Item 8.c. - Page 5
Exhibit A
CITY OF .ARR0Y0 'GRANDE
DEVELOPMENT IMPAeT FEES
EFFECTIVE 4/15/1a
Fire Protection
Development Fee·. per Acres Fee
Type Units Acre .Per Unit Per Unit
Residential -Estate Dwelling_ Uriit $ 1,917.00 2.500 $ 4,793,00
Residential Rural Dwelling Uriit $ 1,917.00 1.000 $ 1,9,1 t::oo
Res;idential -Single-Family Dwelling Unit $· 1.,917.00 1.000 $ 1,917.00
Low" income Dwelling u.riit $ 4.79.00 1.000 $ 479:00
""l/ery Low-income Dwelling Uriit ·1.000
Residential -Multi-Family Dwelling Unit $ 1;917.00 o.pgo $ 173,00
,Low-income Dwelling Unit $ 47'9.00 0.090 $ 43.00
V,ery .Low-income Dwelling Unit 0.090
Residential Mobile Home Dwelling, Unit $ 1,917.00 0.120 $ 2:30.00
Low" income Dwelling LI.nit $ 47:9.00 0.120 $ 57.00
Very Low"income Dwelling Unit 0,1.20
G;ommercial -General Thousand Square Feet $ 1;917.00 0.,091 $ 174.00
Gomr:nercial -Service l'housand Square Feet ,$ 1;917.00 O,Q91 $ 174.00
Hotel/Motel l:bousand Square Feet ~ 1,917.00 0,050 $ 96,00
Professional Office Thousand Square Feet ·$ i,917.00 0.077 $ 148.00
Industrial Thousand Square Feet $ 1,;917.00 0.067 $ 128.00
Police Facilities
Development Fee,per ealls Fee
'T~pe Units Call Per Unit Per Unit
Residential -Estate Dwelling Urlit $ 1'60.00 0.250 $ 4Q,QQ
Residential Rural Dwelling Unit $ 160.00 0.2·50 $ 40.00
Resider:itial -Single~Family Dwelling Unit $ 160.00 0:.750 $ 120.00
L;ow-income Dwellihg: Unit $ 40.00 0750 $ 30.00
Vecy Low-income· DiNelllhg UQit 0'.750
Residential -Multi-Family Dwellihg Unit $ 160.00 1,.:320 $ 21 ~ . .o.o
Low-income Dwelling Unif $ 40.00 1:320 $ 53.00
very Low-income Dwelling Unit 1 .. 320
Re~idential MC>bile Horne Dwelling Unit $ 160.00 0.750 $ 120.00
Low'-iricome Dwelling, U,nit $ 40.00 0 .. 750 $ 30.00
Very Low~income Dwelling Uf:iit 0.750
Commercial -General Thousand .Square Feet $ !.6.0.00 3:9.09 $ .625'.'00
Commercial -Service l'housand'•Square Feet $ 160.00 2.2?3 $ 364.QO
Hotel/Motel Thousand ,Square Feet $ 160.00 1,.,1.95 $ 191.()0
Professional Office Ihousand;Square Feet $" 160.00 0'.095 $ 15.QO
Industrial Thousand ·Square Feet $ 160.00 0:045 $ 7.00
Item 8.c. - Page 6
Exhibit A
CITY OF ARROYO GRANDE
DEVELOPMENT IMPACT FEES
EFFECTIVE 4/15/13
Traffic Signalization
Development Fee per PeakTrips Fee
T~pe Units Trip Per Unit Per Unit
Residential -Estate Dwelling Unit $ 705.00 1.2 $ 846.00
Residential Rural Dwelling Unit $ 705.00 1.2 $ 846.00
Residential -Single-Family Dwelling Unit $ 705.00 1.0 $ 705,00
Low-income Dwelling Unit $ 176.00 1.0 $ 176:00
Very Low-income Dwelling Unit 1:0
Residential--Mliltt-Family Dwelling Unit $ 705:00 0.7 $ 494:00
Low-income !Dwelling Unit $ 176:00 0.7 $ 123\o·o
Very Lo"".'.-income Dwelling Unit 0.7
Residential Mobile Home Dwelling Unit $ 705:00. 0.5 $ 353.00
Low-income [)welling Unit $ 176.00 0.5 $ 88.00
Very Low-income [)welling Unit 0.5
Commercial -General Thousand Square Feet $ 705.0.0 7.0 $ 4,935,00
Commercial -Service Thousand Square Feet $ 705.00 4.0 $ 2,820.00
Hotel/Motel Thousand Square Feet $ 705.00 1.8 $ 1,269.00
Professional Office Thousand Square Feet $ 705.00 2.8 $ 1,974.00
Industrial Thousand Square Feet $ 705.00 0.8 $ 564.00
Transportation Facilities
Development Fee p·er PeakTrips Fee
T~pe Units Trip Per Unit Per Unit
Residential -Estate· Dwelling Unit $ 1,925.00 1.2 $ 2,310.00
Residential Rural Dwelling Unit $ 1,;92p.QO 1.2 $· 2,310.00
Residential -Single"Family D,welling LI.nit $ 1,;925.00 1.0 $ 1.;925.00
Low-income Dwelling Unit $ 48~.00 1.0 $ 481..00
Very Low-income Dwelling Unit t.0
Residential -Multi~Family Dwelling Unit $ 1,925.00 0.7 $ 1,348.00
Low-income Dwelling Unit $ 481.00 0.7 $ 337.00
Very Low-income Dwelling Unit 0.7
Residential Mobile Home Dwelling Unit $ 1,925.00 0.5 $ 963.00
Low-income Dwelling Unit $ 481.00 0.5 $ 241.00
Very Low-income Dwelling Unit 0.5
Commercial -General Thousand Square Feet $ 1,925.00 7.0 $ 13,475.00
Commercial -Service Thousand Square Feet $ 1,925.00 4.0 $ 7,700.00
Hotel/Motel Thousand Square Feet $ 1,925.00 1.8 $ 3,465.00
Professional Office Thousand Square Feet $ 1,925.00 2.8 $ 5,390.QO
· Industrial Thousand Square Feet $ 1,925.00 0.8 $ 1,540.00
Item 8.c. - Page 7
Exhibit A
CITY OF ARROYO GRANDE
DEVELOPMENT IMPACT FEES
EFFECTIVE 4/15/13
Community Centers
Development Fee per Persons Fee
T~pe Units Capita Per Unit Per Unit
Residential -Estate Dwelling Unit $ 53.00 2.7 $ 143.00
Residential Rural Dwelling Unit $' 53 .. 00 2.7 $ 143.oo
Residential -Single-Family Dwelling Unit $ 53.00 2.7 $ 143.00
Low-income Dwelling Unit $ 13.00 2.7 $ 35.oo
Very Low-income Dwelling Unit 2.7
Residential -Multi-family Dwelling lJriit ·$ 53.00 2.0 $ 106.00
Low-income Dwelling Unit $ 13.00 2.0 $ 26.00
Very Low-income Dwelling Unit 2.0
Residential Mobile Home Dwelling Unit $ 53.00 1.5 $ 80.00
Low-.income Dwelling Unit $ 1.3,00 1.5 $ 20.00
Very Low~ihcome !:>welling Unit 1.5
Park Improvements
.Development Fee per Persons Fee
T~pe Units Capita Per Unit Per Unit'
Residential -Estate Dwelling Unit $ 907.00 2.7 $ 2,449.00
Residential Rural Dwelling Unit $ 907.00 2.7 $ 2,449.00
Residential -Single-Family Dwelling Unit $ 907.00 2.7 $ 2,449.00
Low-income Dwelling Unit $ 227.00 2.7 $ 613.00
Very Low-income Dwelling Unit 2.7
Residential -Multi-Family Dwelling Unit $ 907.00 2.0 $ 1,814.00
Low-income Dwelling Unit $ 227.00 2.0 $ 454.oo
Very Low-income Dwelling Unit 2.0
Residential Mobile Home Dwellihg Unit $ 907.00 1.5 $ 1,36ao
Low-income Dwelling Unit $ 227.00 1.5 $ 341.00
Very Low-income Dwelling Unit 1.5
Water Facilities
Meter Size Fee
5/8 inch -3/4 inch $ 997.00
1 inch $ 1,662.00
1 ·1/2 inch $ 3,323,00
2 inch $ 5,3~6,oo
3inch $ 9,970.00
4inch $ 16,617.00
6inch $ 33,248.00
8 inch $ 66,497.00
Item 8.c. - Page 8