HomeMy WebLinkAbout31- City Administrator CITY OF SAN BERNI-ADINO - REQUEST FC I COUNCIL ACTION
From: FRED WILSON Subject: Request for deferment of
Assistant City Administrator development impact fees --
Dept: Spring Mountain Homes Project
September 14 , 1993
Date:
Synopsis of Previous Council action:
9/9/93 -- Legislative Review Committee, on a 2-1 vote, Councilwoman
Pope Ludlam dissenting, to recommend denial of request
of Michael John Enterprises , for a deferment of the
development impact fees connected with Spring Mountain
Homes project.
i
i
Recommended motion:
That the request of Michael John Enterprises (MJE) for the
deferment of all development impact fees for the Spring Mountain
Homes project, as noted in Attachment "A" be approved.
or
That the request of Michael John Enterprises (MJE) for the
deferment of all development impact fees for the Spring Mountain
Homes project, as noted in Attachment "A" b de ed.
Signature
Fred Wilson 5122
Contact perso... Phone:
5
Supporting data attached: yes Ward:
FUNDING REQUIREMENTS: Amount:
Source: Acct. No.
Acct. Descri tion
Finance:
Council Notes:
Agenda Item No._13
75.0262
SPRING MOUNTAIN HOMES -- vERDEMONT ATTACHMENT "A"
A. DETAIL OF FEES FOR 24 UNITS AND UNIT COSTS
B. DETAIL OF FEES FOR 11 UNITS PHASE I
Cost/. Total Cost Phase I
Item
Unit 24 Houses 11 Houses
------------------------------------------
CITY FEES
------------------------------------------
Building Plan Check $595 $14,282 $6,546
Building Permits $794 $19,045 $8,729
Mechanical Permit (Elec,Plumb,Heat) $289 $6,927 $3,175
Strong Motion $13 $321 $147
Mechanical Plan Check (Elec,Plumb,Heat) $87 $2,092 $2,092
Storm Drain - Chstnt strm drn assmt dist $1,716 $41,179 $41,179
Parks & Recreation $1,431 $34,346 $15,742
Signs $33 $781 $781
Traffic System Fee $145 $3,469 $1,590
Trfc Sig Assmt/Box Clvrt (Palm Ave) $290 $6,952 $6,952
Drainage Fee $1,467 $35,214 $16,140
Palm Ave Impr Asmnt Dist $516 $12,384 $5,676
Verdemont Dev. Infrastructure Fee $7,699 $184,776 $84,689
Notice of Exemption $4 $100 $100
Map Checking Fees (Final Map) $72 $1,720 $1,720
Street Imp. Plan Check Fees $477 $11,443 $11,443
Street Imp. Inspection Fee $475 $11,400 $11,400
On-Site Improvement Plan Check Fee $30 $715 $715
On-Site Improvement Inspection Fee $36 $858 $858
Grading Plan Check $3 $75 $75
Grading Inspector Fee $13 $320 $320
Landscape Plan Review $17 $400 $400
Retaining & Garden Wall Plan Check Fee $58 $1,400 $1,400
Retaining & Garden Wall Permit Fee $88 $2,100 $2,100
New Street Light Electrical Energy Fee $118 $2,836 $2,836
Certificate of Occupancy $47 $1,128 $517
Sewer Conn $900 $21,600 $9,900
Grading Permit $31 $750 $750
Misc $425 $10,200 $10,200
TOTAL CITY FEES $17,867 $428,815 $248,173
------------------------------------------
SCHOOL FEES
------------------------------------------
School Fees (Avg House Area X $2.65/sq ft) $5,387 $129,299 $59,262
------------------------------------------
WATER DEPARTMENT
------------------------------------------
Sewer Capacity fee $3,730 $89,520 $41,030
Water Department Fees $3,176 $76,235 $76,235
TOTAL WATER DEPARTMENT FEES $6,906 $165,755 $117,265
------------------------------------------
UTILITIES
------------------------------------------
SCE Tax $149 $3,576 $1,639
Gas Tax $89 $2,136 $979
TOTAL UTILITIES $238 $5,712 $2,618
------------------------------------------
TOTAL UNIT/COST $30,399 $729,581 $427,318
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C I T Y OF S A N B E R N A R D I N O
INTEROFFICE MEMORANDUM
TO: The Legislative Review Committee
FROM: Dennis A. Barlow, Sr. Asst. City Attorney
DATE: September 9, 1993
RE: Deferral of Fees
At the LRC meeting of August 5 the request was made to defer
many of the planning and building fees applicable to the Spring
Mountain Home Project. Staff has been looking at the practical
effects of such a deferral and I understand will recommend that
such deferral not be authorized for fees where a direct city
service is required, but where the fees are essentially impact
fees, that deferral might be considered.
From a legal standpoint none of the fees may be deferred for
this type of a project without amendment of the applicable
ordinances and resolutions. Additionally, if it is determined that
it would be appropriate to explore the deferral of any of the
impact fees, all of the authorizing ordinances and resolutions for
such fees must be examined as well as a determination made whether
there are any restricting contractual commitments and obligations.
Pending a policy decision, we have not undertaken such an analysis.
If it is decided to go forward with this proposal, it must be
remembered that such a deferral must be made available to all
similarly situated developers on the same basis. This may have a
financial impact on the City that one project would not have.
In securing such deferral there should be a written agreement
specifying the terms thereof and providing for either the right of
the City to place a lien on the property or that the filing of the
agreement creates such a lien. Certainly deferral should provide
for interest and a City processing fee on final payment.
DENNIS A ARLOW
DAB:js [Deferral.Mem]
0
LEGISLATIVE REVIEW COMMITTEE
September 9, 1993
�z S c3 9
ATTENDEES:
Councilwoman Valerie Pope-Ludlam - Chairwoman
Councilman Edward Negrete
Councilman David Oberhelman
Dennis Barlow - Sr. Assistant City Attorney
Fred Wilson - Assistant City Administrator
Annie Ramos - Parks, Recreation & Community Services Director
David Kennedy - City Treasurer
Gene Klatt - Assistant City Engineer
Cheryl Flowers - Water Dept. Asst. General Manager
Paule Harmon - Water Dept. Finance Director
Ernie Wilson - Affirmative Action Officer
Phil Arvizo - Council Executive Assistant
Rod Shain - MJE Brokers
Michael Geber - Michael John Enterprises
James Lynas - Citizen
1. SPRING MOUNTAIN HOMES-The Committee, on a 2-1 vote,Councilwoman
Pope-Ludlam dissenting, recommended to deny MJE Enterprise's request for a deferral of fees.
This item will be placed on the September 20 agenda for Council consideration. Councilwom-
an Pope-Ludlam requested a meeting be set up with the Small Business representative in the
Economic Development Agency to determine whether the project would qualify for assistance.
2. HUMAN RELATIONS COMMISSION - The Committee recommended that
staff refer both options back to Council. One option would include selection of Commission-
ers by Ward, the other at large. The question of oath would also be considered. The
Committee requested that staff also present funding options for the support position. This
item will be placed on the September 20 agenda.
Meeting adjourned.
Councilwoman Valerie Pope-Ludlam
Chairwoman
VPL:jv
0
City of San Bernardino
Department of Planning and Building Services
TO: Legislative Review Committee ,*Vt
FROM: Al Boughey, Director of Planning and Building Services
SUBJECT: Request for Deferment of Fees
Spring Mountain Homes
DATE: September 8, 1993
COPIES: Shauna Clark, City Administrator
Fred Wilson, Assistant City Administrator
Annie Ramos, Director of Parks, Recreation and Community
Services
Roger Hardgrave, Director of Public Works/City Engineer
Bernard Kersey, General Manager, Water Department
Gene Klatt, Assistant City Engineer
Dennis Barlow, Senior Assistant City Attorney
Cheryl Flowers, Assistant General Manager, Water
Department
---------------------------------------
Staff has been reviewing the potential of establishing a method
whereas payment of certain fees could be deferred. We assume that
the deferment being requested is until a house is sold. In
reviewing the issue, several points should be considered by the
Legislative Review Committee (LRC) .
1. Should we review this request only for this developer or
should this discussion be directed toward establishing a
policy and payment mechanism that would be available to
all housing developers? This issue is raised since staff
is not aware of any special circumstance or problem that
would single out this request from any other housing
developer.
2. The deferring of fees until a house is sold assumes, of
course, that the house will be purchased in a timely
manner. Failure of a development, or if the house sits
empty for an extended period, would greatly lengthen the
time before the City would receive the fees. In many
cases, these fees are required to construct
facilities/infrastructure needed to serve the
development.
3. The homes for this development range from 1,400 to 2 ,400
square feet. The project does not, by definition,
constitute an affordable housing project. The developer
is requesting the deferral of fees so as to.close the gap
between the financing available and his projected cost. _ _ _
LRC
Request for Deferment of Fees
Spring Mountain Homes
Page 2
One issue to be addressed by LRC is whether the City
should rely on private market forces to determine the
marketability and timing of a development or should the
City explore methods to assist a development of this
type. Staff is providing the following discussion points
if LRC wishes to explore the idea of fee deferrals
further. The attached fee list provided by the developer
can be categorized into four major groups.
1. Development Service Fees - i.e. , fees for the City to
provide a service during the construction process (i.e. ,
inspection, plan check, etc. )
2. Assessment District IF - ongoing assessments that have
been placed on the property.
3 . Development Impacts Fees - such as the park and
recreation, sewer capacity, and Verdemont Development
Infrastructure fees.
4 . Non-City Fees - such as school -Gr private utility fees. -
Since the City and Water Department do not control these-
fees, they will not be discusser further.
Staff is recommending that Development _ Service fees not be
deferred. The City must expend services to support to provide needed plan
checks, inspections, and other se the construction
of a project. The City relies on these fees to cover the cost of
those services. To defer payment could cause a significant burden
to the City.
Assessment district fees are annual fees that have been placed on
the property whether it is developed or vacant. Since they are
placed on the tax bill annually and not at the time of development,
they are not suitable for deferment. If a developer wished to- pay
off are assessment early, this can be accomplished upon the sale of
the property.
The category of fees most suitable far- deferral are impact-type
fees that are collected at permit issuance. They pay for
improvements that have been installed or for future system
improvements. The typical Spring Mountain Home would have the
following impact-type charges (estimated) per unit:
LRC
Request for Deferment of Fees
Spring Mountain Homes
Page 3
1, Park and RstemaFeen $ 1,450
150
2 . Traffic Sy 1, 500
3. Drainage Fee
4 . Chestnut Storm Drainage Fee 7,700
5. Verdemont Infrastructure 900
6. Sewer Connection Fee
7. Sewer Capacity Fee (Water 3 .700
Department) TOTAL $17, 100
If LRC wishes to explore the feasibility of deferring fees further,
the following should b e addressed:
1. City Attorney's Office should review e each of beyond the
fees to see if they can legally b
Building Permit issuance.
2. A legal mechanism must be devised to but ensure that certai
tan_
safeguards are provided, including
lien or other mechanisms to be filed on Property
ensure payment by the developer upon the sale of t2�e'
house. A maximum deferment period should be established---
(possibly 18 months) for the payment of fees-
3. Detailed procedures must be created eto ensures home t the
City can track all future paymen
sold and that each appropriate City account will be
properly credited. Detailed escrow instructions should
be prepared and a disclosure statement drafted for the
developer purchaser the fees i a
the request the devel per and are inc included the
sale price of the home.
4. An interest rate or mechanism should be established to
cover stewould be added during the
period of ferment.
Intere the fee.
5. A processing fee should be established to cover the cost
of preparing documents
the staff time anticipated n collecting and processing
fee payments in the future.
0
LRC
Request for Deferment of Fees
Spring Mountain Homes
Page 4
Recommendation
As noted in the preceding discussion, establishing a fee deferral
process is a complex undertaking and the legal safeguards must be
carefully examined. In addition, the Water, Park/Recreation, and
Planning and Building Services Departments have concerns related to
the amount of processing that will be necessary to keep track of
fees paid on each individual house over an unspecified period of
time. In addition, Parks, Recreation and Community Service has
expressed their concern about the uncertainty of when fees will
actually be collected. It is felt that not knowing when the
revenue will be received will make it difficult to plan and
construct new recreational facilities to serve the area. Overall,
staff questions encreased processing t
outweigh the g neces aryto establish a deferral
process.
If Council feels that the merits of a deferral system outweigh the
cost and complexity, the City Attorney's Office should be directed
to prepare the necessary ordinance(s) and legal documents and to
work with impacted departments to establish appropriate processing
fees and interest rates.
9
0
SPRING MOUNTAIN HOMES -- VERDEMONT
A. DETAIL OF FEES FOR 24 UNITS AND UNIT COSTS
B. DETAIL OF FEES FOR 11 UNITS PHASE I
Cost/ Total Cost Phase I
Unit 24 Houses it Houses
Item
------------------------------------------
CITY FEES
------------------------------------------
Building Plan Check $595 $14,282 $6,546
Building Permits $794 $19,045 $8,729
Mechanical Permit (Elec,Plumb,Heat) $289 $6,927 $3,175
Strong Motion $13 $321 $147
Mechanical Plan Check (Elec,Plumb,Beat) $87 $2,092 $2,092
Storm Drain - Chstnt strm drn assmt dist $1,716 $41,179 $41,179
parks G Recreation $1,431 $34,346 $15,742
Signs $33 $781 $781
Traffic System Fee $145 $3,469 $1,590
Trfc Sig Asamt/Box Clvrt (Palm Ave) $290 $6,952 $6,952
Drainage Fee $1,467 $35,214 $16,140
palm Ave Impr Asamt Dist $516 $12,384 $5,676
Verdemont Dev. Infrastructure Fee $7,699 $184,776 $84,689
Notice of Exemption $4 $100 $100
Map Checking Fees (Final Map) $72 $1,720 $1,720
Street Imp. Plan Check Fees $477 $11,443 $11,443
Street Imp. Inspection Fee $475 $11,400 $11,400
On-Site Improvement Plan Check Fee $30 $715 $715
On-Site Improvement Inspection Fee $36 $858 $858
Grading Plan Check $3 $75 $75
Grading Inspector Fee $13 $320 $320 _
Landscape Plan Review $17 $400 $400
Retaining i Garden Wall Plea Check Fee $58 $11400 $1,400
Retaining 4 Garden Wall Permit Fee $" $2,100 $2,100
New Street Light Electrical Energy Fee $118 $2,836 $2,836
Certificate of Occupancy $47 $1,128 $517
Sewer Conn $900 $21,600 $9,900 -
Grading Permit $31 $750 $750
Misc $425 $10,200 510,20Q
TOTAL CITY FEES $17,867 $428,815 $246,173
------------------------------------------
SCHOOL FEES
------------------------------------------
School Fees (Avg House Area X $2.65/eq ft) $5,387 $129,299 $59,262
------------------------------------------
WATER DEPARTMENT
----------------------------------------- -
Sewer Capacity fee $3,730 $89,520 $41,030
Mater Department Pees $3,176 $76,235 $76,235
TOTAL WATER DEPARTMENT FEES $6,906 $165,755 $117,265
------------------------------------------
UTILITIES
-----------------------------------------
SCE Tax $149 $3,576 $1,639
Gas Tax $89 $2,136 $979
TOTAL UTILITIES $238 $5,712 $2,618
----------------------------------------
TOTAL UNIT/COST $30,399 $729,581 $427,318
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BSI DIRIIINC A411DILINIrAlIN ItAD/41ES., I11-11D..
_- ESTATE SERIES I
A CALIFORNIA LIMITED PARTNERSHIP
- = 19so Sawtelle Blvd
de eoe •; .
Telephone Suite 280 Fax
31 0 79-4933 Los Angeles, CA 90025
g , ( 310 312-0830
September 17, 1993
Mr. Fred Wilson
City Administration
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92418
RE: FEE DEFERRAL ISSUE
SALES RECORDS - VERDEMONT AREA
Dear Mr. Wilson,
At our recent meeting with Councilmember Pope-Ludlam I
undertook to supply you with the result of our search of Title Co.
records on the sale of new single family residences in the
Verdemont area.
The enclosed summary and Title Co. sheets indicate the level
of activity currently taking place in the immediate area of our
site. Two sales per month is the average for the period since the
beginning of the year to the end of June 1993 .
If there is any further information that you require please
contact me.
Your truly,
Michael.J. Geber
President
By Michael John Enterprises, Inc .
General Partner
c .c . Councilmember Pope-Ludlam
Councilmember Negrete
WILSON.LET
ANALYSIS OF 1993 VERDEMONT SALES
(THROUGH JUNE 23 , 1993 )
AUBURN RIDGE
7 SALES AVERAGE PRICE # SOLD
PLAN 1 $171 , 500 1
PLAN 2 $176,000 4
PLAN 3 $182, 000 2
PALM TERRACE
5 SALES AVERAGE PRICE # SOLD
PLAN 23 $168, 000 1 (MODEL)
PLAN 24 $165, 000 1
PLAN 24B $170, 000 1
PLAN 25 $204, 250 2
As of 6/23/93 Q
Mcllellan - Auburn Ridge
Tract 13307
LOT DATE PRICE PLAN NOTES
57 18-Jun-93 167000 3 Phase 4 PLAN 1:
59 07-Jun-93 166000 2 Phase 4 Single Story. 1892 sf
60 09-Apr-93 197000 3 Phase 4 4 Bedrooms, 2 Bathrooms
16 03-Mar-93 177000 2 Phase 4 Family Room, 3 Car Garage
14 02-Feb-93 182000 2 Phase 4 (OPT: 2 car + 5th Br)
53 30-Dec-92 190000 3 Phase 4
55 30-Nov-92 205500 3 Phase 4 PLAN 2:
50 06-Nov-92 170000 2 Phase 4 Two Story. 2247 sf
54 27-Oct-92 182000 2 Phase 4 4 Bedrooms, 2 .75 Baths
13 11-Sep-92 191909 3 Phase 4 Family Room, 3 Car Garage
15 11-Sep-92 158000 1 Phase 4 (OPT: 2 car + 5th Br)
51 03-Sep-92 202000 3 Phase 4
12 23-Jul-92 173500 1 Phase 4 PLAN 3:
52 15-Jul-92 164455 1 Phase 4 Two Story. 2636 sf
11 1 Phase 4 6 Bedrooms, 2.75 Baths
56 2 Phase 4 Family Room, 3 Car Garage
58 3 Phase 4
61 3 Phase 4
As of 6/23/93
Mcllellan - Auburn Ridge
Tract 13307
LOT DATE PRICE PLAN NOTES
43 11-Jun-93 179000 2 Phase 3 PLAN 1:
46 05-Mar-93 171500 1 Phase 3 Single Story. 1892 sf
47 30-Nov-92 169000 2 Phase 3 4 Bedrooms, 2 Bathrooms
45 02-Sep-92 195500 3 Phase 3 Family Room, 3 Car Garage
40 30-Jul-92 182000 2 Phase 3 (OPT: 2 car + 5th Br)
49 10-Jul-92 187000 3 Phase 3
44 29-Jun-92 189000 3 Phase 3 PLAN 2 :
48 27-May-92 158000 1 Phase 3 Two Story. 2247 sf
39 03-Apr-92 193000 3 Phase 3 4 Bedrooms, 2 . 75 Baths
20 20-Mar-92 179500 2 Phase 3 Family Room, 3 Car Garage
42 24-Feb-92 205000 3 Phase 3 (OPT: 2 car + 5th Br)
17 08-Jan-92 . 194000 3 Phase 3
18 25-Nov-91 157000 1 Phase 3 PLAN 3:
41 11-Oct-91 205000 3 Phase 3 Two Story. 2636 sf
19 27-Sep-91 207000 3 Phase 3 6 Bedrooms, 2 . 75 Baths
38 06-Sep-911 186000 2 Phase 3 Family Room, 3 Car Garage
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As of 6/23/93 Q
MONNIG
TRACT 14261 - PALM TERRACE
LOT DATE PRICE PLAN NOTES
16 17-Mar-93 165000 24
10 05-Mar-93 170000 24 1B PLAN 23:
1 01-Mar-93 168000 23 Model Single Story. 1440 sf
3 28-Jan-93 212000 25 3 bedrooms 2 Baths
11 21-Jan-93 196500 25
5 11-Dec-92 191000 25 1B PLAN 24:
15 30-Oct-92 191818 25 2 Story. 1711 sf
21 30-Oct-92 144546 23 3 bedrooms 3 Baths
13 29-Oct-92 183000 25 1B 3 Car Garage
14 07-Oct-92 175500 24
7 25-Sep-92 175455 25 PLAN 24 1B
4 08-Jul-92 167500 24 2 Story. 1930 sf
6 12-Jun-92 144000 23 4 Bedrooms, 3 Baths
18 06-May-92 146500 23 2 car garage
24 04-May-92 178500 24 1B
2 24 1B Model PLAN 25
8 24 1B 2 Story. 2200 sf
9 25 3 to 4 Bedrooms, 3 Baths
12 24 3 Car Garage
17 25
19 24 PLAN 25 1B
20 25 1B 2 Story. 2400 sf
22 24 4 to 5 Bedrooms, 3 Baths
23 23 2 Car Garage
u9,'17,'93 10 G .. PHMC-MJE qij 1- uu1
SSlpf�ftr 1+G rat+D�l�r��r,stltr��► (I1{Dr`�tl��S., iL�IfID..
ESTATE SERIES 11
A CALIFORNIA LIMITED PARTNERSHIP
1-95a Sawtelle Blvd
d l
Teephone Suite 280
Fax
(310)479-4933 LOS Angeles, CA 90025 - (31 0)312-0830
MS. Rachel Clark, Sent Via FAX
City Administrator,
City of San Bernardino,
300 North D Street,
San Bernardino, Ca. 92408
September 17 1993
Re: Spring Mountain Homes, Agenda Item Number 31
Dear Rachel:
With reference to the above item presently appearing on
the Council meeting set for Monday,_,.September 20 1993, we
respectfully request that this item be continued to the
next Council meeting, scheduled for October 4th 1993.
We apologize for any inconvenience they may have caused
you, kindly confirm both the continuance and the
continuance date in due course,. many thanks.
Sincerely,
For: Spring Mountain Homes
cc: City Council- Office
Attention: Sylvia.