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CITY OF SAN BERNARDINO -REOUEST FOR COUNCIL ACTION
From: Valerie C. Ross, Director
Subject:
Deferral of Regional Circulation
Development Impact Fee.
Dept: Development Services
Date: August 11,2008
MCC Date: September 2, 2008
Synopsis oCPrevious Council Action:
July 9, 2008. Ways and Means Committee recommended deferral.
October 15,2007. The Mayor and common Council adopted the Development Impact Fee
Calculation and Nexus Report for the Updated Regional Circulation System Master Facilities
Plan.
April 3, 2006. The Mayor and Common Council adopted Resolution No. 2006-97, which
established various Development Impact Fees.
Recommended Motion:
That the Mayor and Common Council defer the Regional Circulation System Fee update until
SANBAG adopts the updated Development Mitigation Nexus Study.
YJ1tW; t. ~
Valerie C. Ross
Contact person: Robert Eisenbeisz, City Engineer
Phone:
5203
Supporting data attached:
Staff Report
Ward:
All
FUNDING REQUIREMENTS: Amount: None
Source: (Acct. No.) N/A
Acct. Description:
Finance:
Council Notes:
Agenda Item No. ~
1,2.-06
CITY OF SAN BERNARDINO - REOUEST FOR COUNCIL ACTION
STAFF REPORT
Subject: Deferral of Regional Circulation Development Impact Fee.
Background:
At their meeting of May 7, 2008, the SANBAG Board took several actions related to the
Development Mitigation Nexus Study and provided local jurisdictions three options for
complying with Congestion Management Program cost escalation requirements. At the request
of the Building Industry Association, staff presented the SANBAG actions and local jurisdiction
options to the Ways and Means Committee on July 9, 2008. The Committee concurred with
staffs recommendation to defer an increase to the Regional Circulation Development Impact
Fee.
The July 3, 2008 memorandum to the Ways and Means Committee includes a memorandum
from SANBAG that summarizes the Board's actions.
Financial Impact:
The financial impact is undetermined, but anticipated to be minimal. The Regional Circulation
Development Impact Fee will be adjusted after completion of the Development Mitigation Nexus
Study update.
Recommendation:
That the Mayor and Common Council defer the Regional Circulation System Fee update until
SANBAG adopts the updated Development Mitigation Nexus Study.
Attachments: July 3, 2008 memorandum to Ways and Means Committee
2
CITY OF SAN BERNARDINO
DEVELOPMENT SERVICES DEPARTMENT
INTEROFFICE MEMORANDUM
TO:
Ways and MeYt<jtmmittee
Valerie C. Ross, Director
FROM:
SUBJECT:
REGIONAL CIRCULA nON SYSTEMS FEE
DATE:
July 3, 2008
COPIES:
Fred Wilson, City Manager
In 2006, SANBAG adopted a countywide nexus study that identified regional arterial roadway
projects, freeway interchange projects and railroad grade separation projects that would be
funded by Measure I at the request of local agencies. The Measure I extension contained a
requirement that new development projects must contribute a fair share toward the identified
regional improvements and the nexus study identifies the portion of improvement cost that must
be collected by local agencies in order to be in compliance with the San Bernardino County
Congestion Management Plan (CMP), and Measure I. Compliance is required for local agencies
to receive Measure I funding for regional transportation projects.
The City adopted Resolution No. 2006-97, establishing the amounts of the Development Impact
Fees, including the Regional Circulation System Fees that development projects are required to
pay as a fair share toward needed improvements identified in the Master Facilities Plan. The
Master Facilities Plan includes all regional projects within San Bernardino that are identified in
the nexus study adopted by SANBAG and, our Regional Circulation System Fee complies with
CMP and Measure I requirements.
The Congestion Management Program also requires that local agencies annually update their
Development Impact Fees to reflect changes in construction costs, using a factor established each
year by SANBAG. This year SANBAG will be updating the nexus study and local agencies
were given three options for complying with the update requirements of the Congestion
Management Program as indicated in the attached memorandum from SANBAG. One option is
to defer the fee adjustment for one year.
Since the nexus study update will establish updated project costs, staff is recommending that the
City defer the Regional Circulation System Fee update until after the updated nexus study is
adopted by SANBAG. This will result in the current fee amounts remaining in effect until next
year when they will be revised to reflect the updated project costs. Staff feels that this approach
will result in more accurate fees than using a blanket escalation factor to increase the fees. This
is also consistent with the BIA request that increases in impact fees be deferred.
,
Working Together
SAN BAG
Governments
San Bernardino Associated Governments
1170 W. 3" Street, San Bernardino, CA 92410
Phone: (909) 884-8276 Fax: (909) 885-4407
Web: www.sanbaQ.ca.Qov
.San Bernardino County Transportation Commission .San Bernardino County Transportation Authority
.San Bernardino County Congestion Management Agency .Service Authority for Freeway Emergencies
DATE:
May 23, 2008
TO:
City Managers/County Administrative Officer
FROM:
Ty Schuiling, SANBAG Director of Planning and Programming
SUBJECT: Development Mitigation Nexus Study Update and Cost Escalation
At the May 7, 2008 Board of Directors Meeting, the SANBAG Board acted to:
I. Direct staff to prepare an update of the Development Mitigation Nexus Study for
approval ofthe SANBAG Board by November 2008
2. Direct staff to update the cost estimates for freeway interchanges in the Nexus Study and
Measure I 2010-2040 Interchange program
3. Allow local jurisdictions to select one of three options for complying with Congestion
Management Program (CMP) cost escalation requirements for arterial roadways and
railroad grade separations in the Nexus Study
a. Implement a 12.9% cost escalation based on the rolling 5-year average of the
Caltrans Construction Cost Items Index, or;
b. Update project cost estimates based on a detailed project-by-project review of
individual cost elements and provide the documentation to SANBAG for review
and incorporation into the Nexus Study as the basis for escalations, or;
c. Authorize each jurisdiction the autonomy to vote to maintain their congestion
mitigation fee at current levels for the next 12 months.
This memo provides guidance to local jurisdictions consistent with the May 7 Board action, and
describes activities to be undertaken in upcoming weeks to update project cost for use in both the
Nexus Study and the Measure I 2010-2040 Strategic Plan. It is important to note that the
updating of project costs (reflected in items I and 2 above) and the local jurisdiction decision on
setting fee levels (reflected in item 3 above) are two independent activities. The Board directed
SANBAG staff to update Nexus Study project costs, with local jurisdiction input, and also
provided local jurisdictions with three options for updating their fees, including keeping fees at
current levels. The update to project costs included in the Nexus Study will serve as the basis for
the update to project costs included in the Measure I 20 I 0-2040 Strategic Plan. The goal of this
Nexus Study update cycle should be to develop the most realistic set of project costs possible. In
doing so, the Nexus Study update process consists of three parts:
1. Update to interchange costs: SANBAG will complete a reanalysis of the costs for
freeway interchanges. The re-costing of freeway interchanges will be based on
information from Project Study Reports/Project Reports prepared by local jurisdictions
and Caltrans. For interchanges without a Project Study Report or a Project Report,
NexlIs5iwdrUpdateMemo0805/3,doc
(';ties or /lde/allfo, Barstow, Big Bear Lake, ChiIlO, Chino Hills, CO{fOI1. FOlltalla. Grand Terrace, He.'peria, High/and. Lama Linda, MOI//dair
,t..:enJ/es, Ontario, Rancho Cucamollga, Red/ands, Ria/to. 5iall Bernardino, Twentynine Palms, Upland, Viclorville, Yucuipa
Towns of Apple Valley, Yucca Valley County vjSan Bernardino
SANBAG will estimate an appropriate configuration of the interchange based on current
and forecast traffic volumes. Most of the information required for this reanalysis is
readily available to SANBAG, but should additional information be required, SAN BAG
staff will be in contact with your jurisdiction.
2. Update to arterial and railroad grade separation costs: Please mark up the Arterial
Project List (Attachment I of the Nexus Study, included in this packet), showing
estimated project costs for each arterial project as of the end of calendar vear 2007. The
Arterial Project List shows project costs as of the end of 2006, including the cost
escalation based on the Board-approved factor of 12.7% between 2005 and 2006. The
SANBAG Board has approved two options for updating arterial project costs included in
the Nexus Study. Option I is to escalate costs at a rate of 12.9%. Option 2 is to provide
updated project cost estimates based on a detailed project-by-project review of individual
cost elements and to provide the supporting documentation to SANBAG staff for review.
Revised arterial and grade separation project costs should be provided to SANBAG staff
no later than June 30, 2008. We recognize that this is a tight timeline, but is needed for
both the Strategic Plan and in the event a local jurisdiction desires to use those updated
costs (which could be higher or lower than the 2006 estimates) as the basis for setting
their fees.
3. Identification of fee update schedule: The SANBAG Board has approved three options
for local jurisdictions to update development mitigation fees for 2008. Local
jurisdictions could update their fees in accordance with the project costs included in the
2008 Nexus Study update (based on either the 12.9% escalation factor ("3a" in the
recommendation) or on the updated interchange costs referenced in No. I above and on
the updated arterial and grade separation costs referenced in No. 2 above (3b in the
recommendation)).. The SANBAG Board approved as a third option (3c above), a
recommendation by the Building Industry Association to "authorize each jurisdiction the
autonomy to vote to maintain their congestion mitigation fee at current levels for the next
12 months." Local jurisdictions may therefore maintain current fee levels when their
next fee update cycle occurs (either June 30 or December 31, based on Table 9 of the
Development Mitigation Nexus Study). If a local jurisdiction selects this option, fees
must be updated in either June or December of 2009 to reflect the costs as of the end of
calendar year 2008. Local jurisdictions should be aware that selection of option 3c may
result in lower revenue generation than that required to achieve the minimum fair share
development contributions identified in the Nexus Study. Each jurisdiction must provide
SANBAG a letter identifying its approach for updating its fees for 2008 by June 30,
2008. If a jurisdiction does not choose to maintain current fee levels, and is required by
the Nexus Study to update their fees by June 30 (per Table 9 of the Nexus Study), the
jurisdiction must provide the updated arterial and grade separation project costs to
SANBAG (per No.2 above) by June 30. In this event, city council approval of the fee
change may be delayed by one month to July 31. SANBAG will discuss the specifics of
the fee change with the jurisdiction by July 3. SANBAG is required to conduct a review
of each jurisdiction's conformance with the Congestion Management Program in the fall
of each year, and each jurisdiction's election of the fee update option (3a, 3b, or 3c) will
be taken into account when these conformance reviews are conducted.
2
.
In summary, local jurisdiction responsibilities include:
· Update Nexus Study arterial and grade separation project costs (using the adopted
escalation factor or project-by-project review) and provide that information to
SANBAG by June 30
· Send a letter to SANBAG by June 30 (addressed to Ty Schuiling and signed by
the city manager or other authorized representative) indicating the jurisdiction's
selection offee update option (3a, 3b, or 3c). A city councillboard of supervisors
resolution is not required.
If your jurisdiction chooses options 3a or 3b, SANBAG staff will contact you by July 3
regarding next steps. Jurisdictions outside the Valley and Victor Valley are not required to take
any action relating to this memo.
SANBAG staff is available to meet with representatives from your jurisdiction or to answer any
questions you may have. Please direct your written comments and questions to Ryan Graham,
Transportation Planning Analyst, at (909) 884-8276 or e-mail rgraham@sanbag.ca.gov. We
appreciate your assistance and look forward to your comments.
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