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MAYOR & COMMON COUNCIL / COMMUNITY
DEVELOPMENT COMMISSION MEETING BACKUP
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MEETING DATE: February 6, 2006
DEPUTY: Linda Sutherland
*** No backup materials are included for the following items. ***
ITEM #
STATUS
11
12
18
19
25
27
Old Waterman Canyon Fire
Set workshop for Tuesday, February 21, 2006 at EDA Boardroom
Ordinance - first reading amending Title 6 relating to animals
Ordinance - first reading amending Chapter 15.12 re earthquakes
Public hearing - amend Chapter 13.32 re Wastewater Facilities
Set a public hearing for proposed development impact fees
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Fred Wilson, City Administrator
Subject: Proposed development impact
fees
Dept: City Administrator's Office
Date: January 26, 2006
MICC Meeting Date: February 6, 2006
Synopsis of Previous Council Action:
November 21, 2005 - Council workshop was held to discuss development impact fees
December 5, 2005 - Council workshop was held to discuss development impact fees
December 19, 2005 - Council workshop was held to discuss development impact fees
January 9, 2006 - Staff was directed to work with the Council members regarding their specific
development fee impact adjustment concerns, and to move forward to prepare the necessary resolutions
and ordinances
Recommended Motion:
1. Set a public hearing for Tuesday, February 21, 2006, at 4:00 p.m. in the Council Chambers of City Hall
to consider adjusting and/or establishing certain development impact fees;
2. Approve in concept the proposed new and adjusted development impact fees as outlined in
Attachment A of this staff report;
3. Direct staff to prepare the appropriate resolution(s) and/or ordinance(s) to implement the proposed new
and adjusted impact fees, and to proceed with the studies to updat the orm drain and Verdemont
infrastructure impact fees.
Contact person: Lori Sassoon
Phone:
5122
Supporting data attached: staff report
Ward:
all
FUNDING REQUIREMENTS:
Amount: none
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
d. f[;J D 16
Agenda Item No. ~
STAFF REPORT
Subiect:
Proposed development impact fees
Backeround:
Development continues to move ahead at a record pace throughout the city. The rate of
growth continues to drive the demand for municipal services, which in turn generates the
need for expansion of the City's public facilities in order to provide those services.
Years ago, the State recognized the need for cities to be able to meet infrastructure
demands created by development, and passed AB 1600. This bill specifically authorizes
the imposition of development impact fees (DIF's). In order to justify these impact fees,
a nexus study is required to demonstrate the connection between development and the
need for capital projects.
The City has charged impact fees for traffic systems and park development for many
years. These fees have not been adjusted for a considerable amount of time. In addition,
new impact fees for police and fire facilities and equipment, aquatics facilities, public
meeting facilities, and library facilities/materials are being proposed to help fund capital
expenditures related to the provision of services to the community that are strained by
new development.
To that end, a consultant was retained to develop the nexus study, and the study began in
July. The study demonstrates a need to increase these fees in order to provide funds for
capital projects necessitated by development throughout the community. Discussion
workshops concerning this issue have been held with the Mayor and Council on
November 21, December 5, and December 19. Staff has also met twice with
representatives of the Baldy View Chapter of the Building Industry Association (BIA) to
discuss their perspective and concerns.
At the January 9 Council meeting, staff was directed to work with individual
councilmembers to address their respective issues. Following up on the feedback
received from the majority of the Council, although certain councilmembers have
expressed concerns, it is recommended that the staff be directed to prepare the
appropriate resolutions and/or ordinances for consideration at a public hearing on
February 21 that would enact the following:
. Circulation system fee, regional circulation improvements fee, police and fire
equipment and facilities fees, aquatics fee, and library facilities and materials fee
at the levels shown on Schedule 2.2 of the RCS study
. Public meeting facilities fee, and park and open space fee phased in over a four
(4) year period as follows, based on the date of building permit issuance:
o 2006: 70% of amounts shown on Schedule 2.2
o 2007: 80%
o 2008: 90%
o 2009 and beyond: 100%
Attachment A summarizes the proposed fees. The survey (Attachment B) has also been
updated to reflect the fee changes and new fees proposed above.
Some council members have expressed concerns that DIF revenues should be used to fund
projects in the area in which the fees were generated. Pages 2-3 of the RCS report notes
the following:
"AB I 600 requires documentation of projects to be financed by
Development Impact Fees prior to their levy and collection, and that the
monies collected actually be committed within five years to a project of
'direct benefit' to the development which paid the fees... Specifically, AB
I600 requires the following:
I. Delineation of the PURPOSE ofthefee.
2. Determination of the USE ofthefee.
3. Determination of the RELATIONSHIP between the use of the fee and the
type of development paying the fee.
4. Determination of the relationship between the NEED for the facility and
the type of development project.
5. Determination of the relationship between the AMOUNT of the fee and the
COST of the portion of the facility attributed to the specific development
project. "
As a practical matter, some of the revenues derived from the fees are likely to be used for
projects in areas experiencing development, since the needs for new infrastructure are
typically found in those areas of the city. Formal direction is now needed from the
Council if the Council desires that language to that effect be included in the resolution(s).
In a separate action, staff is working with the consultant to update the existing Verdemont
infrastructure fee and storm drain fee. These fee updates will be brought back to the
Mayor and Council for approval in May.
On a go-forward basis, it is anticipated that the City's development impact fees will be
updated annually, so that the fees do not become out of date. Since this fee update will
go into effect so close to the next fiscal year, the first annual update will be proposed in
June 2007 by resolution of the Mayor and Common Council. Other cities take this
routine approach, and it is one that is also supported by the BIA.
Financial Impact:
None by this action. According to the RCS study, the total revenue to be derived from
DIF's through build-out (which is anticipated by 2030) is estimated to provide over $410
million to fund facilities and equipment needed to support new development.
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Recommendation:
It is recommended that the Mayor and Common Council:
1. Set a public hearing for Tuesday, February 21, at 4:00 p.m. in the Council Chambers of
City Hall to consider adjusting and/or establishing certain development impact fees;
2. Approve in concept the proposed new and adjusted development impact fees as
outlined in Attachment A of this staff report;
3. Direct staff to prepare the appropriate resolution(s) and/or ordinance(s) to implement
the proposed new and adjusted impact fees, and to proceed with the studies to update the
storm drain and Verdemont infrastructure impact fees.
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