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HomeMy WebLinkAboutS2- City Administrator CITY OF SAN BERK RDINO - REQUEST F R COUNCIL ACTION From: FRED WILSON Subject: Request for deferment of Assistant City Administrator development impact fees Dept: Spring Mountain Homes Project Date: October 14 , 1993 Synopsis of Previous Council action: 8/2/93 -- Request for deferment of development impact fees for Spring Mountain Project referred to Legislative Review Committee. 8/5/93 -- Referred from Legislative Review Committee to City Attorney to review legal issues . 9/9/93 -- Legislative Revie., recommended item be brought back to Mayor and Council. 9/20/93 -- Council referred item back to Legislative Review Committee and back to full Council on 10/4/93 . 10/4/93 -- Cou c ll refers d to Legislative Review who recommended approval to u�l Counci�I. Recommended motion: 1 . 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; and, if the request for deferment of all development impact fees is approved, that the City Attorney be directed to prepare all necessary resolutions and ordinance amendments to the Municipal Code. or 2 . That the request of Michael John Enterprises (MJE) for the deferment of all development impact fees for the Spring Mounta ' Homes project, as noted in Attachment "A" be denied. 4"G*40"I"nature Contact person: Fred Wilson Phone: 5122 Supporting data attached: yes Ward: FUNDING REQUIREMENTS: Amount: Source: (Acct. No.) (Acct. Description) Finance: Council Notes: Cam- 75-0262 Agenda Item No. STAFF REPORT The issue of the deferment of the development impact fees for Spring Mountain Homes was considered most recently by the Legislative Review Committee at their October 7 , 1993 meeting. At that meeting, the Committee voted 2-1 (Councilman Oberhelman against) to refer the issue to the Council with an affirmative recommendation. Spring Mountain Homes is proposing to construct a total of 24 single family units in the Verdemont area in 2 phases with the first phase consisting of 11 homes. According to Rod Shain, broker representing the Spring Mountain development, the total amount required for the first phase of the construction is $1 , 900 , 000 . The builder has received preliminary approval for a construction loan in the amount of $1 , 500 , 000 which leaves a shortfall of $400 , 000 for the project. The development impact fees which were considered as candidates for the deferral included: Per Unit Phase I 1 . Park and Recreation 11 Units $ 1 , 450 15 , 950 2 . Traffic System Fee $ 150 1 , 650 3 . Drainage Fee $ 1 ,500 16 , 500 4 . Chestnut Storm Drainage Fee $ 1 , 700 18 , 700 5 . Verdemont Infrastructure $ 7 ; 700 84 , 700 6 . Sewer Connection Fee $ 900 9 , 900 7 . Sewer Capacity Fee (Water Dept. ) $ 3 , 700 40 , 700 TOTAL $17 , 100 $188 , 100 Although a number of other processing fees will be incurred with this development, it was agreed that any fees which impacted the general fund or which were not under the direct control of the City (i. e. school fees, utility fees , etc. ) would not be considered for deferral at this time. The Planning Department has identified the following issues which will have to be addressed if the deferral of development impact fees is approved. 1 . The City Attorney will have to review and amend the appropriate authorizing ordinances/resolutions for each of the development impact fees noted above. 2 . An agreement which details safeguards to the City to help ensure collection of the fees and provides the City with the ability to lien the properties in the event of non-payment must also be developed. 3 . An interest rate should be established to cover the cost of money during the deferment period. 0 A 4 . A processing fee should be established to cover the cost of collecting and processing the fee payments. A more detailed explanation of these issues is provided in Attachment "A" . It should be noted that if this deferral is approved, it will apply to all future development unless the Council decides to provide parameters relative to applicability. FRED WILSON Assistant City Administrator FAW/ and I -2- SPRING MOUNTAIN HOMES -- VERDEMONT A. DETAIL OF FEES FOR 24 UNITS AND UN- -OSTS ATTACHMENT "A" B. DETAIL OF FEES FOR 11 UNITS PHASE . Cost/. Total Cost Phase I m Unit 24 Houses it 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 S 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) ;_ 30 $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 6 Garden Wall Plan Check Fee $58 $1,400 $1,400 Retaining S Garden Wall Permit Fee $88 $2,100 $2,100 3w Street Light Electrical Energy Fee $118 $2,836 $2,836 3rtificate 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 $218,173 ------------------------------------------ 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 c:\gpro\feestruc.wkl