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