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HomeMy WebLinkAbout07.B- Community Development 7.B DOC ID: 3333 B CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Information/Report From: Mark Persico M/CC Meeting Date: 07/21/2014 Prepared by: Lisa Sherrick, (909) 384-5057 Dept: Community Development Ward(s): All Subject: Discuss and Take Possible Action on Sunset of Fee Reductions for Fees for Service and Development Impact Fees (#3333) Current Business Registration Certificate: Not Applicable Financial Impact: Approximately$350,000 in increased revenue to the Community Development Department based upon the average activity level over the previous four years. Additional revenue from Development Impact Fees cannot be assessed at this time due to the delay between project approval and commencement of construction. Motion: Allow fee reduction in place since August 2010 to sunset. Synopsis of Previous Council Action: August 2,2010 Mayor and Council approved Resolution 2010-266 allowing the temporary reduction of certain Development Impact Fees expiring August 2, 2012. August 2,2010 Mayor and Council approved Resolution 2010-276 allowing the temporary deferral of certain Development Impact Fees expiring August 2, 2012. August 2, 2010 Mayor and Council approved Resolution 2010-278 allowing the temporary reduction of certain Development Fees for Service expiring August 2, 2012. February, 212012 Mayor and Council approved Resolution 2012-34 extending the temporary reduction of Development Impact Fees and Development Fees for Service until August 2,2014. Background: The Baldy View Chapter of the Building Industry Association(BIA) initially requested that the City reduce Development Impact Fees and Fees for Service in 2010 in order to spur development activity. In response the Common Council adopted three separate resolutions that temporarily reduced or deferred certain fees. In February 2012 the Common Council extended the temporary fee reductions through August 2, 2014. Analysis: The temporary reductions covered both fees for service and development impact fees (DIF). Updated: 7/15/2014 by Henry Empeno Jr. B Packet Pg. 766 3333 Imposition of fees for service are regulated by Governmental Code Sections 65104 and 65909.5. These fees are intended to recover the cost of processing planning, zoning and building applications submitted by builders and developers seeking to build residential, commercial and industrial projects. By law cities cannot charge more than the"reasonable cost"of providing the service. The most recent study of the fees for service was conducted in February 2006. The cost of staffing the Community Development Department should be borne by those using the service (e.g. builders, developers and homeowners). But it should also be noted that other departments (e.g. City Attorney, City Manager, City Clerk, etc.)are often involved in the review and approval of planning projects. A reduction in fees for service means that the City General Fund is underwriting the cost of providing staff services to builders and developers. The second type of fee is called a development impact fees (DIFs). Establishment and collection of DIFs is regulated by Government Code Section 66000 et. seq. also known as AB 1600. These fees pay for infrastructure improvements (sewer,water,police and fire facilities, libraries,parks, etc.)based upon the most recently adopted master plan for the particular facility. The most recent DIF study was completed in February 2006. San Bernardino has a need for new infrastructure and a need to replace aging infrastructure.New development projects pay"their fair-share" in development impact fees based upon the nexus between the new development and the increased demand for infrastructure. If a DIF is reduced, the City does not have adequate revenue to provide the needed new infrastructure. In summary, staff believes that all projects should pay the full cost for the services needed to review the project, and the full cost to install the needed infrastructure. Local and Regional Economic Outlook The theory most often used to support a reduction in city fees is that reduced fees spur economic activity. In some limited circumstances, where a fee is significantly greater than a fee in surrounding cities, staff agrees with this theory. Cities are in competition for new development and high fees can be a disincentive to development. However, cities are also subject to regional and global economic forces. According to a recent report"U.S. Metro Economies" conducted by IHS Global Insight and prepared for The US Conference of Mayors,the economic outlook for the nation and Metro areas specifically is very strong. In brief the January 2014 report notes: "Improved global growth will support stronger exports, while business and consumer spending will also gain some traction. Metro economies will lead the way, first enabling the nation to at last recover the jobs lost during the recession, and then propelling the US economy to achieve its growth potential of greater than 3% real gains per year, a rate not reached since 2004. In 2015 almost half of all metros will exceed the 3% growth rate." Figure 4: Real Gross Metro Product Growth Average Annual Percent Change, 2013-2020 Updated: 7/15/2014 by Henry Empeno Jr.B Packet Pg. 767 3333 100 Largest Metro Areas Highest(%) Austin- Round Rock- San Marcos,TX 4.4 Raleigh-Cary,NC 4.3 Fayetteville - Springdale - Rogers,AR-MO 4.2 Riverside- San Bernardino - Ontario, CA 4.2 Durham- Chapel Hill,NC 4.1 Orlando -Kissimmee - Sanford, FL 4.1 Bakersfield-Delano, CA 4.1 Phoenix - Mesa- Glendale,AZ 4.0 Houston- Sugar Land-Baytown, TX 4.0 McAllen- Edinburg- Mission, TX 4.0 According to the IHS Report the San Bernardino Metro area is expected to be the fourth fastest growing metropolitan area nationally through the remainder of the decade. Based upon the IHS report, staff believes that development interest will increase and construction activity will rebound regardless of reduced City fees. Furthermore,the fee reductions that have been in place since August 2, 2010, should sunset. Supporting Documents: 2010-266 Reducing Certain Development Impact Fees (PDF) 2010-267 Deferral of Certain Development Impact Fees (PDF) 2010-268 Temporary Reduction of Certain Development Fees for Services(PDF) 2012-034 Extending the Temporary Reduction of Development Fees (PDF) Comparison—Table_07212014 (PDF) Notification Letters (PDF) BIA-SB Letter 7-15-14 (PDF) Updated: 7/15/2014 by Henry Empeno Jr.B (IMPORTANT NOTE: REPEALS RESO 2010-246) COMPANION RESOLUTIONS 2010-267 & 2010-268 AMENDED BY RESOLUTION 2012-34 t RESOLUTION NO. 2010-266 N a� U- 2 U R 3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO RELATING TO THE TEMPORARY REDUCTION OF CERTAINw 4 DEVELOPMENT IMPACT FEES ESTABLISHED BY RESOLUTION NO. 2006-97 AN 5 REPEALING RESOLUTION NO. 2010-246. o a� 6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY O o 7 SAN BERNARDINO AS FOLLOWS: 8 SECTION 1: The following Development Impact Fees established by Resolution No 9 � 2006-97 are hereby reduced for a period of two years from the effective date of this resolution 0 4- to for new single family subdivisions, townhomes, and condominium projects of five or more unit U- it o and for new commercial and office projects, provided that building permits are issued an o t2 W t 3 construction commenced within this two year period: M N 14 1. Law Enforcement Facilities, Equipment,Vehicles—50%Reduction. Cn M 15 2. Fire Suppression, Facilities, Equipment,Vehicles—50%Reduction. Fl- En 16 0) 3. Library Facilities and Collection—55%Reduction. U- 17 4. Aquatic Facilities—55%Reduction. 18 — t9 5. Parkland / d and Open Space Acquisition and Park Improvement — 55° w E 0. 0 20 Reduction. W a� 2 SECTION 2: Resolution No. 2010-246 is hereby repealed. ° 22 d 23 c 24 m 25 cfl c0 N _ 26 0 CD T 27 N CD C 28 E U Q - t Packet Pg.769 7.B.a 2010-266 I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO RELATING TO THE TEMPORARY REDUCTION OF CERTAIN 2 DEVELOPMENT IMPACT FEES ESTABLISHED BY RESOLUTION N0. 2006-97 AN 3 REPEALING RESOLUTION NO. 2010-246. a E w 4 s I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an o Common Council of the City of San Bernardino at a J.ynrregularmeeting thereof, held on th > 6 2nd day of August , 2010,by the following vote, to wit: o _ 7 Council Members: AYES NAYS ABSTAIN ABSENT t° a s MARQUEZ X 9 DESJARDINS x o N 10 m BRINKER x LL tt ° _ 12 SHORETT x N 13 KELLEY y 0 14 JOHNSON x M M 15 MC CAMMACK x 16 ti a City Cleric E is _ 19 The foregoing resolution is hereby approved this %u day of August ,2010. a 0 20 > d 0 21 = trick J. Moms, or r 2z ity of San Bernardino 23 = U 24 Approved as to form: 25 JAMES F. PENMAN, N City Attorney o 26 c N 1 Y 27 = By: E 28 t U r Q -2 Packet Pg.'770 (IMPORTANT NOTE: REPEALS RESO 2010-247) � k„ •b COMPANION RESOLUTIONS 2010=266 & 2010-268 1 RESOLUTION NO. 2010-267 U_ 2 v RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA 3 BERNARDINO RELATING TO THE DEFERRAL OF CERTAIN DEVELOPMENT 4 IMPACT FEES ESTABLISHED BY RESOLUTION NO. 2006-97 AND REPEALING RESOLUTION NO.2010-247. o s 6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF o M 7 SAN BERNARDINO AS FOLLOWS: _ as U 8 SECTION 1: For the construction of new single-family subdivisions, townhomes, an 9 0 condominium projects of five or more units, and for the construction of new commercial, office N 10 CD 11 or industrial projects, the following fees established by Resolution No. 2006-97 may be deferre o c 12 at the request of the owner of the property until the release of utilities is issued or eighteen (18 N 13 months from the issuance of the Building Permit, whichever is less: Law Enforcement Facilities 0 14 Vehicles, and Equipment; Fire Suppression Facilities, Vehicles, and Equipment; Regional M IS n Circulation System; Local Circulation System; Parkland and Open Space Acquisition and Par 16 _ 17 Improvement; Library Facility and Collection; Public Meeting Facilities; Aquatics Facilities; an CL E 18 Storm Drain Development. The owner of the property shall personally guarantee payment of the a� 19 fees, sign documents authorizing the City to place a lien on the property in the amount of the o W 20 fees, agree to place the payment of the fees in any escrow for the sale of the property, authorize o 21 the City to demand payment in any such escrow, and pay an administrative fee set by resolution 22 U 23 of the Mayor and Common Council_ The amount of the fees due shall be the amount in effect at o 24 the time of collection of the fees. In no event shall utilities be released until the fees are paid a 0 25 except that electrical service may be released at the discretion of the Building Official whereN 26 ° necessary for security or maintenance purposes. N 27 c 28 SECTION 2: Resolution No. 2010-247 is hereby repealed. a - 1 Packet Pg.771" 2010-267 �✓ I HE MAYOR AND COMMON COUNCIL OF THE CITY OF SA v RESOLUTION OF BERNARDINO RELATING TO THE DEFERRAL OF CERTAIN DEVELOPMENT U- 2 IMPACT FEES ESTABLISHED BY RESOLUTION NO. 2006-97 AND REPEALING 3 RESOLUTION NO.2010-247. E r 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an 5 Common Council of the City of San Bernardino at a jo;,,tregulafeeting thereof, held on the $ 2nd day of August ,2010, by the following vote,to wit: d 6 Council Members: AYES NAYS ABSTAIN ABSENT = 7 MARQUEZ x d 9 DESJARDINS x o N 10 BRINKER x 11 x 0 SHORETT r- 0 y 12 KELLEY x 13 N JOHNSON x 14 M 15 MC CAMMACK X M N 17 City Clerk o E 18 2010. . The foregoing resolution is hereby approved this ` � day of August 19 0 d 20 d 0 Pa k J. Morns, _ 21 of San Bernardino tf 22 U w 0 23 Approved as to form: ;c L 24 JAMES F. PENMAN, o 25 City Attorney N O 26 /J C- `// o 27 By: c E 28 U 0 w Q -2 Packet Pg.772 - (IMPORTANT NOTE: REPEALS RESO 2010-248) 7.B'c COMPANION RESOLTUIONS 2010-266 & 2010-267) AMENDED BY RESOLUTION 2012-34 E 1 RESOLUTION NO. 2010-268 0 CL a� 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN o 3 BERNARDINO RELATING TO THE TEMPORARY REDUCTION O CERTAIN DEVELOPMENT FEES FOR SERVICES ESTABLISHED BY RESOLUTIO 4 NO. 2009-122 AND REPEALING RESOLUTION NO 2010-248. d 5 1n L BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY O ° 6 SAN BERNARDINO AS FOLLOWS: a� 7 4- SECTION 1: The following Development Fees for Services for single famil = g o N 9 subdivisions, townhomes, and condominium projects of five or more units, and for new3 to commercial and office projects, established by Resolution No. 2009-122 are hereby reduced b °. M M 11 50% for a period of two years from the effective date of this resolution, provided that buildingM 12 permits are issued and construction commenced within this two year period.: U 13 d 1. Development Permit 2/3 `L- 14 ,0 15 2. Conditional Use Permit U. r 16 3. Planning Technology Fee d E a 17 4. Planning Archive Fee d 18 5. Building Fire Plan Review 19 t 6. Building Permit U 20 4- 0 21 7. Building Planning Review o U 22 8. Building Issuance Fee a� 23 9. Building Archive Fee L 24 OQ 10. Building Technology Fee E 25 m 26 11. Fire Plan Review/Inspection(<5,000 s.f.) N CD 27 12. Fire Plan Review/Inspection(>5,000 s.f.) N 28 13. Automatic Fire Sprinklers(<2,500 s.f) E U f0 a+ - I Q Packet Pg.773 7.B.c 2010-265 V i.+ E 1 14. Automatic Fire Sprinklers(>2,500 s.£) 2 15. Automatic Fire Sprinklers New Construction 3 16. Cooking Suppression Hood/Spray a d 4 17. Fire Archive Fee d S 18. Engineering Land Development Grading Plan Check ° 6 y 7 19. Engineering Land Development Grading Inspection o c 8 20. Engineering Land Development WQMP 0 N U) v 21. Engineering Land Development Hydrology y 0 10 22. Engineering Land Development SWPPP M ll �? 12 23. Engineering Land Development Off-Site Plan Check 13 24. Engineering Land Development Off-Site Inspection Cn 14 25. Engineering Land Development On-Site Plan Check d a� 15 26. Engineering Land Development On-Site Inspection LL 16 E 27. Engineering Land Development Landscape Plan Check 17 m 28. Engineering Land Development Landscape Inspection o t13 = i9 SECTION 2: Resolution No. 2010-248 is hereby repealed. d U 20 0 c 21 0 z- Ix 23 L 0 24 Q E W 25 H N 26 0 T 0 27 N d 28 E U tII r Q -2 Packet Pg. 774 7.B.c 2010-268 d E 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF S o BERNARDINO RELATING TO THE TEMPORARY REDUCTION O 2 CERTAIN DEVELOPMENT FEES FOR SERVICES ESTABLISHED BY RESOLUTION° 3 NO. 2009-122 AND REPEALING RESOLUTION NO 2010-248. d 4 I HEREBY CERTIFY that the foregoing Resolution was d�11 adopted by the Mayor an regu a Common Council of the City of San Bernardino at ajoint meeting thereof, held on thecA s 2nd day of August , 2010, by the following vote, to wit: o 6 d Council Members: AYES NAYS ABSTAIN ABSENT U. 7 0 8 MARQUEZ x .o 9 DESJARDINS x 0 1 o BRINKER M M M 11 SHORETT x a� 12 KELLEY x 13 to JOHNSON x o 14 N x 15 MC CAMMACK ,D E w I N 16 E ��— O 17 �— City Clerk d 18 ° The foregoing resolution is hereby approved this day of August ,2010. _ 19 a� U 20 0 Pa k J. Morns, or o zl of San Bernardino 22 23 Approved as to form: 0 24 Q JAMES F. PENMAN, 0 25 City Attorney 00 W N 26 c CD •���� 27 By-. N.. _ 28 E V R Q -3 Packet Pg.775 7.B.d 1 RESOLUTION NO. 2012-34 E a 0 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 3 BERNARDINO AMENDING RESOLUTIONS NO. 2010-266 AND 2010-268, AND o EXTENDING THE TIME PERIOD FOR THE TEMPORARY REDUCTION OF a 4 CERTAIN DEVELOPMENT IMPACT FEES AND DEVELOPMENT FEES FOR 5 SERVICES. rn 6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 0 OF SAN BERNARDINO AS FOLLOWS: 7 m U- 8 SECTION 1. Resolution No. 2010-266, entitled "Resolution of the Mayor and Common c 0 9 Council of the City of San Bernardino Relating to the Temporary Reduction of Certain 10 Development Impact Fees Established by Resolution No. 2006-97 and Repealing Resolution No. o 1 2010-246," is hereby amended to extend the time period for the reduction of certain M M 12 Development Impact Fees listed in Resolution No. 2010-266 by an additional two years, from N 13 August 2, 2012 to August 2, 2014. U. 14 SECTION 2. Resolution No. 2010-268, entitled "Resolution of the Mayor and Common E a 15 Council of the City of San Bernardino Relating to the Temporary Reduction of Certain —0 16 Development Fees for Services Established by Resolution No. 2009-122 and Repealing o 0 17 Resolution No. 2010-248," is hereby amended to extend the time period for the reduction of o 18 certain Development Fees for Services listed in Resolution No. 2010-268 by an additional two a� 19 years, from August 2, 2012 to August 2, 2014. ' 20 SECTION 3. All other provisions of Resolutions No. 2010-266 and 2010-268 remain 0 E 21 unchanged. (D d 22 a� c 23 c m 24 W NT 25 M 0 N r 26 N 27 (D E 28 U a 1 Packet Pg.776 mm 7.B.d 2012-34 a� 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN o 2 BERNARDINO AMENDING RESOLUTIONS NO. 2010-266 AND 2010-268, AND EXTENDING THE TIME PERIOD FOR THE TEMPORARY REDUCTION OF o 3 CERTAIN DEVELOPMENT IMPACT FEES AND DEVELOPMENT FEES FOR SERVICES. M 4 v 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and joint o 6 Common Council of the City of San Bernardino at a regular meeting thereof, held on the 21st N as 7 day of February ,2012,by the following vote,to wit: 0 8 = 0 9 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT N U N 10 MARQUEZ x o M 1 t JENKINS co x M 12 N BRINKER x 13 u- Ir 14 SHORETT x E 0. 15 KELLEY x N 16 JOHNSON x 0 17 MC CAMMACK x o U 18 a 19 Rach'el Clark, City Clerk L 20 0 The foregoing Resolution is hereby approved thisa7flday of February , 2012. C 21 d H a� 22 23 AT CK J. MOINUSMayor Cl of San Bernardino .. 24 Approved as to form: W 25 JAMES F. PENMAN ° N 26 Ci Attorney N 21 Q 28 w w Q -2 Packet Pg.777; o `_4 $z + O ° pue aowaS ao;saa=l;o uoissnosip : ££££) t WZ4ZL0 angel uosuedwo3 :;uauagoe;;y + 00 ff} CO 4E; bJ� O O m v CA S E Ef3 O m � rz °CD U (z 00 CD .o UO 0 o C) C) ^ o W `o o cu o d Lr CL u Lo ocz � u v o oUU v � Q v U U U o m E U � CD 0 00 'n, 0 O r 00 n, O -. 3 .o N O � � v � o 00 � "D '� mC) xL � +� o v + ,n _ Ln k C5 Z h Q 4�jq CD o m � u cz o CD t� o 0.o c!} k ° C N N � 4� u crj C O CA m Lr) + u u N bR + a O N • ! + x O V O O v v O O O 4J L� n + O 9 O O i ER a\CD�p a cv b!J O m � � p 'n 00 ° �cz �U moCU Z Z u bG rn O ~ \ 00 °- N a H u L� o� N + .. a) + O 00 � oN0 6� O gyp` �, x +� "'O � � a, � (� U N N V n s, N O N aJ P4 - Q � N • �- U G J O cz et \ O VVV U j O n CZ)CD M O 00 000 r� O O a� U + 'C1 > 0000 n Z N L O N co U � cfr � p I En cz ` u u a v u b4 CO N . Cd wir' ll QC) C <C c° F�-4UU pue aoinaaS aol saaj jo uoissnosia : ££££) V�OZ4ZL0 angel uosiaedwoo :;u9wg3e;}d d ti m ti d N d, C ° m d a Z Z � Z Z,41 Z 42 Zkc&q Z Z Z 06 - LO CD CD C) � rn N m m ° m d o cn 00 ON 00 Lr) LO Ou m p N LAC) 00 N —ti T' oo o Ln ON ( Z Z Z � z Z J � Z 2 Z Z � �EP 0 CU W u. d" R v 0, uc v U to U Q bA w as ' u O cz c C ;-4 p sc0 O 'p H p p b^�A O a a U Q a a w w ¢ x �U Q H COMMUNITY DEVELOPMENT DEPARTMENT A 300 North"D"Street•San Bernardino•CA 92418-0001 Planning&Building 909.384.5057•Fax:909.3 84.508o San Bernar Ana www.sbeity.org _ d July 2,2014 U- U Q Yvette Martinez-Garofano E Governmental Liaison AT&T E CL 1265 Van Buren,Room 180 0 Anaheim, CA 92807 > SUBJECT: City of San Bernardino Development Impact Fees 0 Dear Ms. Martinez-Garofano: i 0 rn On July 21, 2014 at 4:OOPM, the City of San Bernardino Mayor and Common Council has ,o agendized a discussion item regarding the sunset of the temporary fee reduction that has been in a effect since August 2, 2010. The Common Council will discuss allowing the temporary U- reduction in fees to end on August 2,2014,or to extend the temporary reduction. o O If you should have any questions, please contact me at (909) 384-5357 or Persico ma@,s1)cqy.org. V1 Sincerely, M M M L it Mark Persico, AICP J Interim Community Development Director c w U w r O MP/bl z a� Cc: Henry Empeno, Senior Deputy City Attorney City Clerk's Office r w Q Packet Pg.780' COMMUNITY DEVELOPMENT DEPARTMENT 300 North"D"Street•San Bernardino•CA 92418-000l Skn—arfiio Planning&Building 909.384.5057 Fax:909.384.5080 an www.sbcity.org _ SM July 2,2014 LL Beverly Powell,Regional Manager E Local Public Affairs Southern California Edison E 287 Tennessee Street o Redlands, CA 92373 > aD 0 SUBJECT: City of San Bernardino Development Impact Fees Dear Ms. Powell: a� On July 21, 2014 at 4:OOPM, the City of San Bernardino Mayor and Common Council has o agendized a discussion item regarding the sunset of the temporary fee reduction that has been in effect since August 2, 2010. The Common Council will discuss allowing the temporary U- U- 4-in fees to end on August 2,2014, or to extend the temporary reduction, o C O If you should have any questions, please contact me at (909) 384-5357 or N Persico ma@Nbcity.org. N Sincerely, M M M �� rn d Mark Persico, AICP d Interim Community Development Director O U 4= r O MP/bl Z c a� Cc: Henry Empeno, Senior Deputy City Attorney E City Clerk's Office Q Packet Pg.781 COMMUNITY DEVELOPMENT DEPARTMENT r i 300 North"D"Street•San Bernardino•CA 92418-00ol Planning&Building 909.384,5057•Fax:909.384.5080 San Berner ino www.sbcity.org sm July 2, 2014 U Rf Q Carlos Rodriguez,Chief Executive Officer E Building Industry Association of Southern, California, Inc. Baldy View Chapter E 8711 Monroe Court, Suite B o Rancho Cucamonga, CA 91730 d SUBJECT: City of San Bernardino Development Impact Fees a� Dear Mr. Rodriguez: L cry On July 21, 2014 at 4:OOPM, the City of San Bernardino Mayor and Common Council has 0 agendized a discussion item regarding the sunset of the temporary fee reduction that has been in effect since August 2, 2010. The Common Council will discuss allowing the temporary U-- reduction in fees to end on August 2, 2014, or to extend the temporary reduction, o _ O If you should have any questions, please contact me at (909) 384-5357 or v Petsico ma a?sbcity.org. Sincerel M Cl) M Mark Persico,AICP Interim Community Development Director o w ca U w O MP/bl z d Cc: Henry Empeno, Senior Deputy City Attorney E City Clerk's Office o a.. Q Packet Pg.782 '' 7.B.f COMMUNITY DEVELOPMENT DEPARTMENT 300 North"D"Street•San Bernardino•CA 92418-0001 Planning&Building 909.384.5057 •Fax:909.384.5080 San=Bernar www.sbcity.org em UJ d July 2,2014 u w L) a Kristine Scott E Public Affairs Manager Southern California Gas Company E o. 155 South G Sheet ° d San Bernardino, CA 92410 d a SUBJECT: City of San Bernardino Development Impact Fees as Dear Ms. Scott: a� Cn On July 21, 2014 at 4:OOPM, the City of San Bernardino Mayor and Common Council has ,0 agendized a discussion item regarding the sunset of the temporary fee reduction that has been in effect since August 2, 2010. The Common Council will discuss allowing the temporary u_ reduction in fees to end on August 2, 2014,or to extend the temporary reduction. c 0 If you should have any questions, please contact me at (909) 384-5357 or Persico maOsbcitLorg. y 0 Sincerely, M M ,ten v t0 i d Mark Persico, AICP Interim Community Development Director o .2 a w 0 z MP/bl Cc: Henry Empeno, Senior Deputy City Attorney City Clerk's Office r Q Packet Pg.783 7--.0-;b July 15, 2014 •• 'R City of San Bernardino 300 North"D" Street San Bernardino, CA 92418 Oal*`1 e -Chcr#t 8711 Monroe Court, Suite 1 H Rancho Cucamonga, ti California 91730 r ph 909.945.1884 a RE: Development Impact Fee Temporary Reduction fx 909.948.9631 E www.biabuild.com a� E Dear Mayor Davis and fellow City Councilmembers, o aD The Building Industry Association, Baldy View Chapter(BIA)respectfully requests that the City Council extend the Development Impact Fee (DIF) reduction 24-months to August 2016 in an effort to encourage new residential development,job creation and economic growth. We believe that a temporary DIF reduction for residential construction is a viable economic development strategy as the City of San Bernardino works toward sustainable fiscal recovery. L Specifically, BIA recommends that the DIFs associated with residential development remain reduced by a net total of 50%. We also recommend that a cap be placed on the DIF LL reductions once development rates have stabilized in two years or to a rate of 150 single- o family residential permits per year,whichever comes first. o N cn To remain competitive the City of San Bernardino should also reevaluate the current development impact fee schedule through a nexus study in an effort encourage new development. M M The City Council recently adopted a balanced budget which included the restoration of =' Administrative Fees for the Community Development Department. BIA has no comment on the r administrative fees except, we hope that by restoring administrative fees and hiring new staff the overall efficiency of the entitlement process will be greatly improved. m The U.S. Conference of Mayors recently conducted a study and found that Riverside-San Bernardino-Ontario, CA metropolitan area is posed to have the third highest Gross Product Growth in the nation, 4.2%by 2020. Business friendly policies such as a DIF reduction will help Q position the San Bernardino to compete with neighboring jurisdictions such as Rancho 00 Cucamonga, Ontario and Fontana. Over the past 17 months these cities have significantly outperformed San Bernardino for new residential development (see graphs below). E U RS With policies focused on attracting the jobs associated with new residential development the City Q can better compete in a competitive marketplace. For example 100 new homes creates 350 new jobs with a net benefit of $4.0 million to local government over 15 year period (please see attached NAHB economic overview). An Affiliate of the National Association of Home Builders and the California Building Industry Association Packer Pg.784 7.B.g In summary, we urge you to consider extending the current fee reduction policy for an additional 24-month period with the stipulations outlined in this letter. Our industry appreciates your time and attention on this matter. BIA remains optimistic that by continuing to work together we can provide economic growth,jobs and revenue to the City for years to come. Please feel free to contact me at 909-945-1884 if you have any questions or comments pertaining to this letter. d LL U t6 Q Respectfully, E c r O m Carlos Rodriguez, CEO o CC: Planning Commission, City Manager Allen Parker d d Cn L O W N d d tL O O_ N N 3 U N 0 M M M M r T" T" ti i d V d J m N a m d E a Building Industry Association,Baldy View Chapter 8711 Monroe Court,Suite B.Rancho Cucamonga,CA 91730 P.909.94 Packet An 7ft� BIA Oa*Vww-CA U- Jobs Creation Initiative CL San Bernardino Comparison of Residential Permits Totals E (SFR & MFR — Jan '13-May 114) Q 800 0 705 ° 700 U_ 01 tA 600 W,., N O •E d a� m °- 500 LL 4- is 0 0 � N ;a 400 Vf U GJ N cc Q p� 299 LL 300 — M M _Y M W .... N 200 156 185 ti L 100 74 J 40 N Q 0 m Rialto San Bernardino Colton Ontario Fontana Rancho Cucamonga a) E City r° .r a Building Industry Association,Baldy View Chapter 8711 Monroe Court,Suite B.Rancho Cucamonga,CA 91730 P.909.94 Packn+pry 7RR 7.B.g Big Oat*Ue C40(w 0 N U. Jobs Creation Initiative M Q San Bernardino City Single-Family Permit Totals ,v E 500 a- 467 —0 n Since 2005 Single-Family 450 homebuilding permits have °� declined 92% in San Bernardino 400 s' d y 350 0 300 290 Li M 250 to LL N N � _ V � to 200 O 156 M M 150 v 100 ti L d 50 J 21 11 6 23 18 y o m 2005 2006 2007 2008 2009 2010 2011 2012 2013 Jan-May '14 m E Year Y �M+ a Building Industry Association,Baldy View Chapter 8711 Monroe Court,Suite B.Rancho Cucamonga,CA 91730 P.909.94 D{ ante♦ Cn 7A�