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Home My WebLink About34-City Administrator ~ CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Fred Wilson, City Administrator Subject: Resolution amending Resolution Nos. 93-381, 89-510, and 88-140, and decreasing the traffic systems fee, storm drainage fee, and sewer connection and inspection fee for new development on previously developed parcels Dept: Administration Date: November 4, It)RIGINAL Synopsis of Previous Councll Action: April 1999 - Mayor and Common Conncil adopted the Big Industry Growth strategy for business development. October 25, 1999 - Legislative Review Committee recommended that the business recruitment and retention incentives be referred in concept to the full Council, along with the requested modifications and business demographics. November 15,1999 - Mayor and Council direct the City Attorney to prepare the appropriate resolutions and ordinances implementing the business recruitment incentives. Recommended Motion: Adopt resolution. -#;- Contact person: Fred WilsonILori Sassoon Phone: 5122 Supporting data attached: Staff reJ)ort Ward: All FUNDING REQUIREMENTS: Amount: -0- Source: (Acct. No.) (Acct Description) Finance: Councll Notes: Agenda Item No. 39 11./U>f1' Staff Report Subject: Resolution amending Resolution Nos. 93-381, 89-510, and 88-140, and decreasing the traffic systems fees, storm drainage fees, and sewer connection fees for new development on previously developed parcels. Backlrround: Several initiatives have been undertaken in the last 18 months as part of the City's efforts to promote job growth and business development. Many of these actions have resulted from the Mayor's Business Advisory Council, the Business-Industry Growth strategy (otherwise known as the ''BIG plan"), and the Goals and Action Plans approved in October 1998. The key elements implemented to date include: . Completion of the City's first Business Climate Survey . Formation of a "streamlining team" to address and improve Development Services processes . Start of the Economic Development Action Team (EDAT) to fast-track key job-creating development projects . Customer service training for City employees . An "Economic Gardening" demonstration project that is providing assistance to existing businesses While the initiatives implemented to date are having a positive impact on business development, there remains opportunity to provide further incentives that promote this type of business growth and development. In response to suggestions from the business community, EDA staff, and Councilman Sclmetz, staff is proposing a set of business recruitment incentives. These are: . A Utility User's Tax (UUT) rebate program that ties the rebate amount to the number of higher- skilled, higher-wage jobs created . A development impact fee program that reduces these fees when a business proposes to occupy a previously-developed property On October 28, the Legislative Review Committee recommended that the business recruitment and retention incentives be referred in concept to the full Council, along with the requested modifications and business demographics. On November 15, the Council directed the City Attorney to prepare the appropriate resolutions and ordinances implementing these incentives. In accordance with that direction, this agenda item addresses the impact fee reductions. The companion ordinance change concerning the Utility User's Tax rebate is under development, and will be presented to the Council in January. Develqpment Services Impact Fees Reduction Developers are required to pay a number of impact fees when obtaining a building permit. These include: . The Trqffic Systems Fee - This fee is collected from trip generating developments to finance traffic- related projects or to increase capacity. Fees are calculated using estimates concerning the amount of traffic generated by the proposed development. The revenues collected from the fees are placed in the Traffic Systems Fund. This fund provides for traffic projects such as installation of new traffic signals, traffic striping, and replacing aging or obsolete traffic control systems. Approximately $330,000 in Traffic Systems fees was collected in FY 98/99. 1 . The Storm Drain Fee - This fee is collected from new developments based on the square footage of impervious area of the property. The revenues collected from this fee are placed in the Storm Drain Construction Fund. This fund is used for the installation of new storm drain systems per the comprehensive Storm Drain Master Plan, and replacing aging or obsolete systems. Approximately $405,000 in Storm Drain fees was collected in FY 98/99. . The Sewer Connection Fee - This fee is collected from new developments based on square footage of the structure. Revenues collected from the fee are placed in the Sewer Line Construction Fund. Projects funded with this fee can include system capacity for new users, replacing aging or obsolete systems and meeting new regulatory requirements. Approximately $160,000 in Sewer Connection fees was collected in FY 98/99. In an effort to encourage reuse of existing commercial, industrial, and residential properties, an amended fee schedule is proposed that would allow a credit for the existing use of properties where there is or was a structure. Fees for new development or substantial improvement would be calculated based upon the change in use and square footage. ("Substantial improvement" is defined by in the Building Code as at least a 25% increase in floor area.) This program will encourage developers to build on previously developed property. Financial Impact: It is difficult to estimate the exact impact of modifYing the calculation of the three impact fees. However, in an analysis of the previous three years, only nine projects would have been affected by the proposed changes. Based on the estimated FY 1998-99 revenue to the three funds involved, Development ServiceslEngineering staffhas estimated that the revised fees would result in a 3% decrease in revenues: Type of Average Annual Estimated Estimated TOTAL Impact Fee Fees Collected Annual Fee Annual FY 98/99 Under Current Under Decrease Estimated Fee Schedule Proposed Fee in Revenue Revenue Schedule Traffic Systems $20,500 $14,100 $ 6,300 $330,000 Fee Storm Drain $13,100 -0- $13,100 $405,000 Fee Sewer $ 3,800 $ 2,700 $ 1,100 $160,000 Connection Fee Total $46,800 $17,200 $29,000 $895,000 These impact fees are used to fund projects included in the Capital Improvement Program (CIP). This would have some impact on the City's ability to fund CIP projects related to traffic systems, storm drains, and sewers. Recommendation: It is recommended that the resolutions be adopted. 2 . " 1 2 3 4: 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RESOLUTION OF TIIE MA YORAND COMMON COUNCIL OF TIIE CITY OF SAN BERNARDINO AMENDING RESOLUTION NOS. 88-140, 89-510, AND 93-381, AND DECREASING TIlE TRAFFIC SYSTEMS FEE, TIlE SEWER CONNECTION AND INSPECTION FEE, AND TIlE STORM DRAINAGE FEE FOR NEW DEVELOPMENT ON PREVIOUSLY DEVELOPED PARCELS. BE IT RESOLVED BY TIlE MAYOR AND COMMON COUNCIL OF TIIE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. In order to promote job growth and business development, Resolution No. 88-140, which established traffic systems fees, is hereby amended to add Section 1 (E) to read as follows: "E. On ~y parcel or parcels that have been previously developed, the Traffic Systems Fee on all new development or any substantial improvement shall be based upon the additional number of vehicle trips, if any, to be generated by the proposed development or improvement which are greater than that generated by the previous development." SECTION 2. In order to promote job growth and business development, Resolution No. 89-510, which established sewer connection and inspection fees, is hereby amended to add Section 1(8)(6) to read as follows: "6. On any parcel or parcels that have been previously developed, the Sewer Connection and Inspection Fee on all new development or any substantial improvement shall be based upon the amount of building area to be added, if any, by the new development or improvement which is greater than that previously existing." SECTION 3. In order to promote job growth and business development, Resolution No. 93-381, which established a schedule for storm drainage fees, is hereby amended to add Section 7 to read as follows: IIIII 1 , , . '. J' .J.' Z' .._/(?t'~~7 u.;/;,.'-<.~c~.c.;:'-z F' . '-""?f (J....,0,."J- ,-f~.. :> ~ /-,,(;..;t( .V .-.'1, ,~ '--" 1""2/-: /.>/;:;.- . r 1 2 3 4 5 6 7 8 9 10 RESOLUTION OF lHEMAYORAND COMMON COUNCIL OF TIm CITY OF SAN BERNARDINO AMENDING RESOLUTION NOS. 88-140, 89-510, AND 93-381, AND DECREASING lHE TRAFFIC SYSTEMS FEE, lHE SEWER CONNECTION AND INSPECTION FEE, AND lHE STORM DRAINAGE FEE FOR NEW DEVELOPMENT ON PREVIOUSLY DEVELOPED PARCELS. "SECTION 7. On any parcel or parcels that have been previously developed, the Stonn Drainage Fee on all new development or any substantial improvement shall be based upon the amount of ground floor building area or other impervious area to be added, if any, by the new development or improvement which is greater than that previously existing." /1/// 11 //1// " 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ///1/ 2 .r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OFTIlEMA YORAND COMMON COUNCn. OF TIlE ClTY OF SAN BERNARDINO AMENDING RESOLUTION NOS. 88-140, 89-510, AND 93-381, AND DECREASING TIlE TRAFFIC SYSTEMS FEE, TIlE SEWER CONNECTION AND INSPECTION FEE, AND TIlE STORM DRAINAGE FEE FOR NEW DEVELOPMENT ON PREVIOUSLY DEVELOPED PARCELS. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino, at a the day of Council Members: AYES ESTRADA LIEN MCGlNNIS SCHNETZ SUAREZ ANDERSON MILLER meeting held on ,1999, by the following vote, to wit: NAYS 1999. The foregoing resolution is hereby approved this Approved as to form and legal content: JAMES F. PENMAN, City Attorney By: d [reso.decrease.reesj 3 ABSTAIN ABSENT City Clerk day of Judith Valles, Mayor City of San Bernardino