CC 2020-01-28_08c Annual Adjustment of Development Impact Fees
MEMORANDUM
TO: CITY COUNCIL
FROM: NICOLE VALENTINE, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF ANNUAL ADJUSTMENT OF DEVELOPMENT IMPACT
FEES
DATE: JANUARY 28, 2020
SUMMARY OF ACTION:
Adoption of a Resolution approving the annual adjustment of Development Impact Fees.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Adoption of the Resolution will increase the Development Impact Fees charged for new
development projects in 2020. The revenue generated from this increase is dependent on the
amount of new development in the community during the coming year.
RECOMMENDATION:
It is recommended the City Council adopt a Resolution approving the annual adjustment to the
City’s Development Impact Fees based on changes in the Engineering News Record (ENR)
Construction Cost Index (CCI).
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).
ANALYSIS OF ISSUES:
The calculation shown below provides documentation that a 1.98% increase in the ENR CCI
warrants an adjustment in the City’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 calculation is as follows:
1.0198 = 1 + 11,281 – 11,062
11,062
Item 8.c. - Page 1
CITY COUNCIL
CONSIDERATION OF ANNUAL ADJUSTMENT OF DEVELOPMENT IMPACT FEES
JANUARY 28, 2020
PAGE 2
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Adopt the Resolution;
2. Do not adopt the Resolution and request further information; or
3. Provide direction to staff.
ADVANTAGES:
By approving the recommended fees, the City will be able to recover the estimated cost of
providing services to new development.
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 at City Hall and on the City’s website in accordance with Government
Code Section 54954.2.
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, 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 66017.
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 28th day of January, 2020.
Item 8.c. - Page 3
RESOLUTION NO.
PAGE 2
_____________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
_____________________________________
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
_____________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.c. - Page 4
Definitions:
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 yearly 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.
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:
EXHIBIT A
Item 8.c. - Page 5
Exhibit A
Development Fee per Acres Fee
Type Units Acre Per Unit Per Unit
Residential - Estate Dwelling Unit 2,015.00$ 2.500 5,038.00$
Residential Rural Dwelling Unit 2,015.00$ 1.000 2,015.00$
Residential - Single-Family Dwelling Unit 2,015.00$ 1.000 2,015.00$
Low- income Dwelling Unit 504.00$ 1.000 504.00$
Very Low-income Dwelling Unit -1.000
Residential - Multi-Family Dwelling Unit 2,015.00$ 0.090 181.00$
Low- income Dwelling Unit 504.00$ 0.090 45.00$
Very Low-income Dwelling Unit -0.090
Residential Mobile Home Dwelling Unit 2,015.00$ 0.120 242.00$
Low- income Dwelling Unit 504.00$ 0.120 60.00$
Very Low-income Dwelling Unit -0.120
Commercial - General Thousand Square Feet 2,015.00$ 0.091 183.00$
Commercial - Service Thousand Square Feet 2,015.00$ 0.091 183.00$
Hotel/Motel Thousand Square Feet 2,015.00$ 0.050 101.00$
Professional Office Thousand Square Feet 2,015.00$ 0.077 155.00$
Industrial Thousand Square Feet 2,015.00$ 0.067 135.00$
Development Fee per Calls Fee
Type Units Call Per Unit Per Unit
Residential - Estate Dwelling Unit 168.00$ 0.250 42.00$
Residential Rural Dwelling Unit 168.00$ 0.250 42.00$
Residential - Single-Family Dwelling Unit 168.00$ 0.750 126.00$
Low- income Dwelling Unit 42.00$ 0.750 32.00$
Very Low-income Dwelling Unit -0.750
Residential - Multi-Family Dwelling Unit 168.00$ 1.320 222.00$
Low- income Dwelling Unit 42.00$ 1.320 55.00$
Very Low-income Dwelling Unit -1.320
Residential Mobile Home Dwelling Unit 168.00$ 0.750 126.00$
Low- income Dwelling Unit 42.00$ 0.750 32.00$
Very Low-income Dwelling Unit -0.750
Commercial - General Thousand Square Feet 168.00$ 3.909 657.00$
Commercial - Service Thousand Square Feet 168.00$ 2.273 382.00$
Hotel/Motel Thousand Square Feet 168.00$ 1.195 201.00$
Professional Office Thousand Square Feet 168.00$ 0.095 16.00$
Industrial Thousand Square Feet 168.00$ 0.045 8.00$
CITY OF ARROYO GRANDE
DEVELOPMENT IMPACT FEES
EFFECTIVE 03/30/2020
Fire Protection
Police Facilities
Item 8.c. - Page 6
Exhibit A
CITY OF ARROYO GRANDE
DEVELOPMENT IMPACT FEES
EFFECTIVE 03/30/2020
Development Fee per PeakTrips Fee
Type Units Trip Per Unit Per Unit
Residential - Estate Dwelling Unit 741.00$ 1.2 889.00$
Residential Rural Dwelling Unit 741.00$ 1.2 889.00$
Residential - Single-Family Dwelling Unit 741.00$ 1.0 741.00$
Low- income Dwelling Unit 185.00$ 1.0 185.00$
Very Low-income Dwelling Unit -1.0
Residential - Multi-Family Dwelling Unit 741.00$ 0.7 519.00$
Low- income Dwelling Unit 185.00$ 0.7 130.00$
Very Low-income Dwelling Unit -0.7
Residential Mobile Home Dwelling Unit 741.00$ 0.5 371.00$
Low- income Dwelling Unit 185.00$ 0.5 93.00$
Very Low-income Dwelling Unit -0.5
Commercial - General Thousand Square Feet 741.00$ 7.0 5,187.00$
Commercial - Service Thousand Square Feet 741.00$ 4.0 2,964.00$
Hotel/Motel Thousand Square Feet 741.00$ 1.8 1,334.00$
Professional Office Thousand Square Feet 741.00$ 2.8 2,075.00$
Industrial Thousand Square Feet 741.00$ 0.8 593.00$
Development Fee per PeakTrips Fee
Type Units Trip Per Unit Per Unit
Residential - Estate Dwelling Unit 2,022.00$ 1.2 2,426.00$
Residential Rural Dwelling Unit 2,022.00$ 1.2 2,426.00$
Residential - Single-Family Dwelling Unit 2,022.00$ 1.0 2,022.00$
Low- income Dwelling Unit 506.00$ 1.0 506.00$
Very Low-income Dwelling Unit -1.0
Residential - Multi-Family Dwelling Unit 2,022.00$ 0.7 1,415.00$
Low- income Dwelling Unit 506.00$ 0.7 354.00$
Very Low-income Dwelling Unit -0.7
Residential Mobile Home Dwelling Unit 2,022.00$ 0.5 1,011.00$
Low- income Dwelling Unit 506.00$ 0.5 253.00$
Very Low-income Dwelling Unit -0.5
Commercial - General Thousand Square Feet 2,022.00$ 7.0 14,154.00$
Commercial - Service Thousand Square Feet 2,022.00$ 4.0 8,088.00$
Hotel/Motel Thousand Square Feet 2,022.00$ 1.8 3,640.00$
Professional Office Thousand Square Feet 2,022.00$ 2.8 5,662.00$
Industrial Thousand Square Feet 2,022.00$ 0.8 1,618.00$
Traffic Signalization
Transportation Facilities
Item 8.c. - Page 7
Exhibit A
CITY OF ARROYO GRANDE
DEVELOPMENT IMPACT FEES
EFFECTIVE 03/30/2020
Development Fee per Persons Fee
Type Units Capita Per Unit Per Unit
Residential - Estate Dwelling Unit 55.00$ 2.7 149.00$
Residential Rural Dwelling Unit 55.00$ 2.7 149.00$
Residential - Single-Family Dwelling Unit 55.00$ 2.7 149.00$
Low- income Dwelling Unit 14.00$ 2.7 38.00$
Very Low-income Dwelling Unit -2.7
Residential - Multi-Family Dwelling Unit 55.00$ 2.0 110.00$
Low- income Dwelling Unit 14.00$ 2.0 28.00$
Very Low-income Dwelling Unit -2.0
Residential Mobile Home Dwelling Unit 55.00$ 1.5 83.00$
Low- income Dwelling Unit 14.00$ 1.5 21.00$
Very Low-income Dwelling Unit -1.5 -
Development Fee per Persons Fee
Type Units Capita Per Unit Per Unit
Residential - Estate Dwelling Unit 953.00$ 2.7 2,573.00$
Residential Rural Dwelling Unit 953.00$ 2.7 2,573.00$
Residential - Single-Family Dwelling Unit 953.00$ 2.7 2,573.00$
Low- income Dwelling Unit 238.00$ 2.7 643.00$
Very Low-income Dwelling Unit -2.7 -
Residential - Multi-Family Dwelling Unit 953.00$ 2.0 1,906.00$
Low- income Dwelling Unit 238.00$ 2.0 476.00$
Very Low-income Dwelling Unit -2.0
Residential Mobile Home Dwelling Unit 953.00$ 1.5 1,430.00$
Low- income Dwelling Unit 238.00$ 1.5 357.00$
Very Low-income Dwelling Unit -1.5 -
Meter Size Fee
5/8 inch - 3/4 inch 1,047.00$
1 inch 1,746.00$
1 1/2 inch 3,492.00$
2 inch 5,585.00$
3 inch 10,475.00$
4 inch 17,459.00$
6 inch 34,933.00$
8 inch 69,866.00$
Community Centers
Park Improvements
Water Facilities
Item 8.c. - Page 8