CC 2014-07-08_08.c. Waiver of Adj of Dev Impact FeesMEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES-~
SUBJECT: CONSIDERATION OF WAIVING ANNUAL ADJUSTMENT OF
DEVELOPMENT IMPACT FEES
DATE: JULY 8, 2014
RECOMMENDATION:
It is recommended the City Council adopt the attached Resolution waiving the annual
adjustment to the City's Development Impact Fees.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The adoption of the attached Resolution will not change the Development Impact Fees
charged for new development projects in fiscal year 2014-15. Without a cost of living
adjustment to Development Impact Fees, some level of City funding subsidy may be
required to mitigate impacts for new development. The revenue generated from this
action is dependent on the amount of new development in the community during the
fiscal 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 by the Engineering News Record
Construction Cost Index. On June 10, 2014, the Council adopted the FY 2014-15 budget,
which included an appropriation for a comprehensive Development Impact Fee study.
ANAYLYSIS OF ISSUES:
The Engineering News Record indicates that a fee increase of 2.86% would be
warranted, based on the City's Municipal Code. However, given the appropriation of
funds for a comprehensive fee study, staff recommends delaying any changes in the
Development Impact Fees until the results of the study are considered by the Council.
Staff anticipates issuing a Request for Proposals for the study in the fall of 2014, with
completion before the end of the fiscal year. In addition to re-examining the level of fees
necessary to appropriately mitigate impacts, it will enable the City to determine if fee
amounts are competitive with other jurisdictions.
Item 8.c. - Page 1
CITY COUNCIL
CONSIDERATION OF ANNUAL ADJUSTMENT OF IMPACT FEES
JULY 8, 2014
PAGE2
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Approve staff recommendation to retain current fee structure;
2. Do not approve staff recommendation and increase Impact Fees by 2.86%;
3. Modify staff recommendation and approve;
4. Provide direction to staff.
ADVANTAGES:
As a result of the impacts of the recent recession, the economics of development have
changed. The City's fees can often make a project that is beneficial to the community
cost prohibitive. Therefore, the purpose and advantage of staff's recommendation is to
avoid the potential of further increasing fees until it is known that the amounts are
appropriate, competitive with other jurisdictions, and feasible to pay.
DISADVANTAGES:
The City will forgo any revenues that would have been generated by higher fees during
the fiscal year. A small City funding subsidy may be required to fully mitigate impacts for
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, July 3, 2014. The Agenda
and report were posted on the City's website on Thursday, July 3, 2014. No public
comments were received.
Item 8.c. - Page 2
RESOLUTION NO. __
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE WAIVING THE ANNUAL COST OF
LIVING ADJUSTMENT OF DEVELOPMENT IMPACT
FEES FOR FISCAL YEAR 2014-15
WHEREAS, pursuant to Section 3.36.040 of the Municipal Code, Development Impact
Fees are to be adjusted annually by modifying the adopted value up or down in
conformance with the Engineering News Record Construction Cost Index; and
WHEREAS, the City Council has directed a new development impact fee study be
performed to ensure appropriate fees are calculated and charged.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo
Grande hereby waives the annual cost of living adjustment for Fiscal Year 2014-15 and
re-adopts the fees and fee schedules set forth in Exhibit "A" attached hereto and
incorporated herein by this reference.
On motion of Council Member seconded by Council Member
________ and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of , 2014.
Item 8.c. - Page 3
RESOLUTION NO.
PAGE2
TONY FERRARA, MAYOR
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 -Residential and commercial development divided into sub-
categories.
Units of Development-A standard measure of the cost to provide services. The
acre is the fundamental unit measure, 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 of annual additional police calls generated 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 expanded 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 ARROYO GRANDE
DEVELOPMENT IMPACT FEES
EFFECTIVE 7/1/14
Fire Protection
Development Fee per Acres Fee
Type Units Acre Per Unit Per Unit
Residential -Estate Dwelling Unit $ 1,917.00 2.500 $ 4,793.00
Residential Rural Dwelling Unit $ 1,917.00 1.000 $ 1,917.00
Residential -Single-Family Dwelling Unit $ 1,917.00 1.000 $ 1,917.00
Low-income Dwelling Unit $ 479.00 1.000 $ 479.00
Very Low-income Dwelling Unit 1.000
Residential -Multi-Family Dwelling Unit $ 1,917.00 0.090 $ 173.00
Low-income Dwelling Unit $ 479.00 0.090 $ 43.00
Very Low-income Dwelling Unit 0.090
Residential Mobile Home Dwelling Unit $ 1,917.00 0.120 $ 230.00
Low-income Dwelling Unit $ 479.00 0.120 $ 57.00
Very Low-income Dwelling Unit 0.120
Commercial -General Thousand Square Feet $ 1,917.00 0.091 $ 174.00
Commercial -Service Thousand Square Feet $ 1,917.00 0.091 $ 174.00
Hotel/Motel Thousand Square Feet $ 1,917.00 0.050 $ 96.00
Professional Office Thousand Square Feet $ 1,917.00 0.077 $ 148.00
Industrial Thousand Square Feet $ 1,917.00 0.067 $ 128.00
Police Facilities
Development Fee per Calls Fee
Type Units Call Per Unit Per Unit
Residential -Estate Dwelling Unit $ 160.00 0.250 $ 40.00
Residential Rural Dwelling Unit $ 160.00 0.250 $ 40.00
Residential -Single-Family Dwelling Unit $ 160.00 0.750 $ 120.00
Low-income Dwelling Unit $ 40.00 0.750 $ 30.00
Very Low-income Dwelling Unit 0.750
Residential -Multi-Family Dwelling Unit $ 160.00 1.320 $ 211.00
Low-income Dwelling Unit $ 40.00 1.320 $ 53.00
Very Low-income Dwelling Unit 1.320
Residential Mobile Home Dwelling Unit $ 160.00 0.750 $ 120.00
Low-income Dwelling Unit $ 40.00 0.750 $ 30.00
Very Low-income Dwelling Unit 0.750
Commercial -General Thousand Square Feet $ 160.00 3.909 $ 625.00
Commercial -Service Thousand Square Feet $ 160.00 2.273 $ 364.00
Hotel/Motel Thousand Square Feet $ 160.00 1.195 $ 191.00
Professional Office Thousand Square Feet $ 160.00 0.095 $ 15.00
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 7/1/14
Traffic Signalization
Development Fee per PeakTrips Fee
Type 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 -Multi-Family Dwelling Unit $ 705.00 0.7 $ 494.00
Low-income Dwelling Unit $ 176.00 0.7 $ 123.00
Very Low-income Dwelling Unit 0.7
Residential Mobile Home Dwelling Unit $ 705.00 0.5 $ 353.00
Low-income Dwelling Unit $ 176.00 0.5 $ 88.00
Very Low-income Dwelling Unit 0.5
Commercial -General Thousand Square Feet $ 705.00 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 per PeakTrips Fee
Type Units Trip Per Unit Per Unit
Residential -Estate Dwelling Unit $ 1,925.00 1.2 $ 2,310.00
Residential Rural Dwelling Unit $ 1,925.00 1.2 $ 2,310.00
Residential -Single-Family Dwelling Unit $ 1,925.00 1.0 $ 1,925.00
Low-income Dwelling Unit $ 481.00 1.0 $ 481.00
Very Low-income Dwelling Unit 1.0
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 $ 5,390.00
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 7/1/14
Community Centers
Development Fee per Persons Fee
Type Units Capita Per Unit Per Unit
Residential -Estate Dwelling Unit $ 53.00 2.7 $ 143.00
Residential Rural Dwelling Unit $ 53.00 2.7 $ 143.00
Residential -Single-Family Dwelling Unit $ 53.00 2.7 $ 143.00
Low-income Dwelling Unit $ 13.00 2.7 $ 35.00
Very Low-income Dwelling Unit 2.7
Residential -Multi-Family Dwelling Unit $ 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 $ 13.00 1.5 $ 20.00
Very Low-income Dwelling Unit 1.5
Park Improvements
Development Fee per Persons Fee
Type 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 $ 454.00
Very Low-income Dwelling Unit 2.0
Residential Mobile Home Dwelling Unit $ 907.00 1.5 $ 1,361.00
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
2inch $ 5,316.00
3inch $ 9,970.00
4inch $ 16,617.00
6inch $ 33,248.00
8inch $ 66,497.00
Item 8.c. - Page 8