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08e Annual Adjustment of Dev. Impact FeesMEMORANDUM TO: CITY COUNCIL \ f FROM: ANGELA KRAETSCH, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: CONSIDERATION OF ANNUAL ADJUSTMENT OF DEVELOPMENT IMPACT FEES DATE: JANUARY 10,2012 RECOMMENDATION: It is recommended the City Council adopt the attached Resolution approving the annual adjustment to the City's Development lmpact Fees. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The adoption of the attached Resolution will increase ,the Development lmpact Fees charged for new development projects in 2012. 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 by the Engineering News Record Construction Cost Index. ANAYLYSIS OF ISSUES: The calculation shown below provides documentation that a 3.04% increase in the ENR warrants an adjustment in the City's Development lmpact Fees. The calculation adjusts the fees as follows: Factor = 1 + Current lndex -Base lndex For Date of Adoption Base lndex For Date of Adoption The calculation is as follows: Agenda Item 8.e.Page 1 CITY COUNCIL CONSIDERATION OF ANNUAL ADJUSTMENT OF IMPACT FEES JANUARY 10,2012 PAGE 2 ALTERNATIVES: The following alternatives are provided for City Council consideration: - Approve staff recommendation to increase Impact Fees; % - Do not approve staff recommendation and retain current fee structure; - Modify staff recommendation and approve; - 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 additional services to the 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, January 5, 2012. The Agenda and report were posted on the City's website on Friday, January 6, 2012. No public comments were received. Agenda Item 8.e.Page 2 RESOLUTION NO. A RESOLUTION OF THE ClTY COUNCIL OF THE ClTY OF ARROYO GRANDE ADJUSTING DEVELOPMENT IMPACT FEES BY THE CHANGE IN 'THE ENGINEERING NEWS RECORD CONSTRUCTION COST INDEX 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. 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 incorporated herein by this reference. This Resolution shall take effect sixty (60) days after its adoption per Government Code Section 6601 7. 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 , 2012. Agenda Item 8.e.Page 3 RESOLUTION NO. PAGE 2 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 Agenda Item 8.e.Page 4 EXHIBIT "A" Definitions: Development Tvpes -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 yearly additional police calls generated by new development. Facilitv 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. Fees: 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: Agenda Item 8.e.Page 5 Exhibit A Development TY pe Residential - Estate Residential Rural Residential - Single-Family Low- income Very Low-income Residential - Multi-Family Low- income Very Low-income Residential Mobile Home Low- income Very Low-income Commercial - General Commercial - Service HotellMotel Professional Office Industrial Development TY pe Residential - Estate Residential Rural Residential - Single-Family Low- Income Very Low-income Res~dential - Multi-Family Low- income Very Low-income Residential Mobile Home Low- income Very Low-income Commercial - General Commercial - Service Hotellfvlotel Professional Office Industrial CITY OF ARROYO GRANDE DEVELOPMENT IMPACT FEES EFFECTIVE 31911 2 Fire Protection Fee per Units Acre Dwelling Unit $ Dwelling Unit $ Dwelling Unit $ Dwelling Unit $ Dwelling Unit Dwelling Unit $ Dwelling Unit $ Dwelling Unit Dwelling Unit $ Dwelling Unit $ Dwelling Unit Thousand Square Feet $ Thousand Square Feet $ Thousand Square Feet $ Thousand Square Feet $ Thousand Square Feet $ Police Facilities Fee per Units Call Dwelling Unit $ 156.00 Dwelling Unit $ Dwelling Unit $ Dwelling Unit $ Dwelling Unit Dwelling Unit $ Dwelling Unit $ Dwelling Unit Dwelling Unit $ Dwelling Unit $ Dwelling Unit Thousand Square Feet $ Thousand Square Feet $ Thousand Square Feet $ Thousand Square Feet $ Thousand Square Feet $ Acres Per Unit Fee Per Unit Calls Per Unit 0.250 Fee P& Unit $ 39.00 Agenda Item 8.e.Page 6 Exhibit A CITY OF ARROYO GRANDE DEVELOPMENT IMPACT FEES EFFECTIVE 319112 Traffic Signalization Development Fee per PeakTrips Fee Type Units Trip Per Unit Per Unit Residential - Estate Dwelling Unit $ 687.00 1.2 $ 824.00 Residential Rural Dwelling Unit $ 687.00 1.2 $ 824.00 Residential - Single-Family Dwelling Unit $ 687.00 1 .O $ 687.00 Low- income Dwelling Unit $ 172.00 1 .O $ 172.00 Very Low-income Dwelling Unit 1 .O Residential - Multi-Family Dwelling Unit $ 687.00 0.7 $ 481 .OO Low- income Dwelling Unit $ 172.00 0.7 $ 120.00 Very Low-income Dwelling Unit 0.7 Residential Mobile Home Dwelling Unit $ 687.00 0.5 $ 344.00 Low- income Dwelling Unit $ 172.00 0.5 $ 86.00 Very Low-income Dwelling Unit 0.5 Commercial - General Thousand Square Feet $ 687.00 7.0 $ 4,809.00 Commercial - Service Thousand Square Feet $ 687.00 4.0 $ 2,748.00 HotellMotel Thousand Square Feet $ 687.00 1.8 $ 1,237.00 Professional Office Thousand Square Feet $ 687.00 2.8 $ 1,924.00 Industrial Thousand Square Feet $ 687.00 0.8 $ 550.00 Transportation Facilities Development Fee per Type Units Trip Residential - Estate Dwelling Unit $ 1,875.00 Residential Rural Dwelling Unit $ 1,875.00 Residential - Single-Family Dwelling Unit $ 1,875.00 Low- income Dwelling Unit $ 469.00 Very Low-income Dwelling Unit Residential - Multi-Family Dwelling Unit $ 1,875.00 Low- income Dwelling Unit $ 469.00 Very Low-income Dwelling Unit Residential Mob~le Home Dwelling Unit $ 1.875.00 Low- lncome Dwelling Unit $ 469.00 Very Low-income Dwelling Unit Commercial - General Thousand Square Feet $ 1,875.00 Commercial - Service Thousand Square Feet $ 1,875.00 HotellMotel Thousand Square Feet $ 1,875.00 Professional Office Thousand Square Feet $ 1,875.00 Industrial Thousand Square Feet $ 1,875.00 PeakTrips Per Unit Fee Per Unit $ 2,250.00 Agenda Item 8.e.Page 7 Exhibit A CITY OF ARROYO GRANDE DEVELOPMENT IMPACT FEES EFFECTIVE 3/9/12 Community Centers Development Fee per Persons Fee Type Units Capita Per Unit Per Unit Residential - Estate Dwelling Unit $ 51 .OO 2.7 $ 138.00 Residential Rural Resldential - Single-Family Low- income Very Low-income Residential - Multi-Family Low- income Very Low-income Resldential Mobile Home Low- income Very Low-income Dwelling Unit Dwelling Unit Dwelling Unit Dwelling Unit Dwelling Unit Dwelling Unit Dwelling Unit Dwell~ng Unit Dwelllng Unit Dwelling Unit Park Improvements Development Fee per Persons Fee Type Units Capita Per Unit Per Unit Residential - Estate Dwelling Unit $ 884.00 2.7 $ 2,387.00 Residential Rural Dwelling Unit $ 884.00 2.7 $ 2.387.00 Residential - Single-Family Dwelling Unit $ 884.00 2.7 $ 2,387.00 Low- income Dwelling Unit $ 221.00 2.7 $ 597.00 Very Low-income Dwelling Unit 2.7 Residential - Multi-Family Dwelling Unit $ 884.00 2.0 $ 1,768.00 Low- income Dwelling Unit $ 221.00 2.0 $ 442.00 Very Low-income Dwelling Unit 2.0 Residential Moblle Home Dwelling Unit $ 884.00 1.5 $ 1,326.00 Low- lncome Dwelllng Unit $ 221.00 1.5 $ 332.00 Very Low-income Dwelling Unit 1.5 Water Facilities Meter Size Fee 518 inch - 314 inch $ 972.00 1 inch 1 112 Inch 2 inch 3 inch 4 inch 6 Inch 8 inch Agenda Item 8.e.Page 8