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Home My WebLink About19-City Administrator MAYOR & COMMON COUNCIL / COMMUNITY DEVELOPMENT COMMISSION MEETING BACKUP MEETING DATE: March 6, 2006 DEPUTY: Linda Sutherland *** No backup materials are included/or the/ollowing items. *** ITEM # STATUS 8 9 19 Resolution approving destruction of City Attorney records Old Waterman Canyon Fire Set a public hearing for proposed development impact fees 20 Ordinance amending Chapters 2.02, 2.04, 2.06 et al 21 Cable Canyon Road 22 Council Committee Appointments 23 Ordinance adding Chapter 13.25 Spreading or Extraction CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Fred Wilson, City Administrator Subject: Proposed development impact fees Dept: City Administrator's Office Date: February 27,2006 MICC Meeting Date: March 6, 2006 Synopsis of Previous Council Action: November 21, December 5, and 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 February 6, 2006 - Item continued for 30 days Recommended Motion: 1. Set a public hearing for Monday, March 20, 2006, at 4:00 p.m. in the Council Chambers of City Hall to consider adjusting and/or establishing certain development impact fees; 2. 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 upd e the storm drain and Verdemont infrastructure impact fees. Contact person: Lori Sassoon Phone: 5122 Supporting data attached: staff report Ward: all FUNDING REQUIREMENTS: Amount: none by this action Source: JAcct. No.) (Acct. Description) Finance: Council Notes: Agenda Item No. I q f . .., /./ // / r., - . .~. r i-/ ?::? \d /' '-to / I ST AFF REPORT Subiect: Proposed development impact fees Back2:round: 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, this item was again considered by the Mayor and Council on February 20. After some discussion and comments from IVDA, Hillwood, BIA, and others, the Mayor and Council continued the matter for 30 days. Since that time, staff has met with IVDA, Hillwood, and the BIA to discuss the proposed DIF updates and study methodology. A response was prepared and sent to the letter submitted to the Mayor and Council on February 1 by the National Association of Office and Industrial Properties (NAIOP). Copies of the DIF study have been provided to all parties that have requested the documentation. A number of local developers have also contacted staff to obtain information. In a separate matter, IVDAlSBIAA has requested an exemption agreement that would exempt the airport area from paying local and regional traffic systems fees for a defined period of time. IVDA has agreed that this issue will be addressed on a separate track from the implementation of the new development impact fee schedule, so that the City can move forward to adopt the new fees without further delay. It is anticipated that the proposed exemption agreement will be brought forward to the Mayor and Council in late March or early April. At this time, it is recommended that the staff be directed to prepare the appropriate resolutions and/or ordinances for consideration at a public hearing on March 20 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 councilmembers 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 1600 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 1600 requires the following: 1. Delineation of the PURPOSE ofthefee. 2. Determination of the USE of the fee. 3. Determination of the RELA TlONSHIP 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). 2 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. Other cities take this routine approach, and it is one that is also supported by the BrA. 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. Recommendation: It is recommended that the Mayor and Common Council: 1. Set a public hearing for Monday, March 20, at 4:00 p.m. in the Council Chambers of City Hall to consider adjusting and/or establishing certain development impact fees; 2. 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. 3 Attachment A - Summary of proposed new and adjusted development impact fees ~o~al_Circl.~~iI~iol1~Y~J_e_,,!, ~!te qetached dwellin9 uni~s _ __ $ . Attached dwelling units--- - -$- ----- ----- ~MobiJe home unlts.-- $ - - - qOrnme~jaIIO~~_~=- __ ~_~~__ __ -Commercial/office $ ---~-===-=~=-_-':'Industrial ~~_~~__ - - ---_--="$' ___ 1,236 per Unit - 825 'perunrt 649 per unit. 650;Per" unit'-~ 1333 'persq ~ft-- _0)08 ~_s<i~_- Regional Circulat~n Sy_~tem Imprc>vemenTl'ee (NE_~ - - - - -~- -'Detache.Tdwelli,,9~u:n~!_ $- - --834 'per';nrt.- - Attached dwelling units - S--- -us5f--per-';nii-~ - '-MobiTi!home units~-~- $--'-.43s7perurni - -Commerciallodgirig - ---~$------ 438 per unit ---- -'Commercial/office .. - - .-T--- - - 0:899 persq ft ~~__ _ - indUstrial uses .----~_==_$_- -----~Q:~"_4 per sqT- Detached dwellingimits----' $- 535~per- unit ,Attached dwellingunltS-- -- -5---- 4~er--unit-- Mobile home units'-.o $-~Oiy.!,-un~ -- ---;Commerci8llodgi-~~~~_ -='~~_______2.~! per unit __ ,Commercial/office $ 0.242 per sq ft -~~ .lndustn!!"s"s :=~- ___ T-- 0005persgfL Detachecfdwelrmg'-u"nltS- - - -$-- 663 per unit -Attached dwelling u-mts-----S------S1Bper-umf- ,Mobile home units. -- ------$--- -S31--per-unrt- . Commerclsllodglng- - - --- "$ - -313 --pi,i -urui-- -CornmerClai/office $ 0:f4:1persqrt- ~}ii~~triaTuses ~~ $ _Q.Qo2 --il,,;:s:q:ii Law Enforcemelil}.CiII!ies: EquiPrt1e;'i.Y"-l1j~es. Fee. <t!EW) -- F}.~~ Supp'r~s~i~n Fa"ci~t!~s,_ ~q\:,!pmer:'~L'~(~hi.cl~~~e~ (~~~J _ Library Fa.cililie...~"dCollectio"-F.,,,,(ljEIN) __Detached dwelling units~--' 'Attached dwelling units ____~~~bjle home uni~" $ $ _-f:.:-- - Detached dwelling--unltS $- - - -AttachecfdwemnguriltS-- __n_ $ - - ---~~==---==--==-~-=--_=--_-==----~--MObliehome units. ~----~-~~___ Aquatics Facilities Fe~ (N"W) Public Meeting Facllitl.s Fee(NEW) n__ Set the fee at 70o;,oiproposedlevelfor2006 eD% of l,roposed level far 200i-- ... .-. 90%of proposedleveiicir200-a -.- 1ooo;,-ofproe<>sll<llevelf",1009ariCi beYOr1c1_ 2006 (70%) Detached dwelling units--n---$~-~ - . -Attached dwel~ng' units --- -- --s _._~__~EblI~~o~~~~!~._- ... ~~" -2007 (800/,)-~-- Detached dwelling units .. . '9> - -:t-iiacheddwelling unit..---=-~!~ -- __~Mo~!!!_h_C)~e ~~~~_ __ _____ ~__ m~__ . -2008(90o/,)--~ - - - - - -- U Detached dwelling urnts- --------~ AttaCl1ed-dweliingunits . ----- -Mobiieuhcime units. --- ----- -~------ $ ~I -- ~- ---~-------- ----------- -----~20p9and~nd.t100o/~)_: - Detached dwelling units - $ - Atta-ched dwelling units----- ---S- ______~_ .______________~-~ciliIle hom_~~~~s. - --- ___~ Parkland and Open Space Acquisition and Park Improvement Fee 2006 (70%) sei the fee .170'/, of proposed level for 2006 - - - . '.Detached dwellirigunits~ -$ 80% of proposedTeve"(foi-2oojU - ---- - - ---,A.-ttached" dwelling Untts --- ._~-- 9o%oiproposedle'veITor2008---~~ . - ~-Mobile~horneunits' --- .~. 100% of proposed Ieveit9r ?Ql!9 andJle'yon~ - - ~-- -2oo-i{80%) - _ -~Q!'~~~~d d~_elling u~s_ $ Attached dwelling units .$ ---- MOblfe-hOmeunits.-==_~~j_~ ___ - -~008J900/~~-- Detached dwelling units $ -'Attached dWelling-units $ --~--- --Mobile home';nit,,- __n_ '$ 2009 and bevond ( 1 00%) Detached dwelling units _~ached dwe'!ir19iii.'is 'Mobile home units. f _$ of I to mobile homes located in mobile home arks. City Administrators Office 2/27/2005 -----~534 'per unii-- -~ 423 'Per unTt~ 18.4 per u"T 273 .'per Unit 21-6- .per unit .-- ____~_ 1-9f_~p.!t!~~E_ ~ j ~ In w >= iJ w '" ii: ::E w o z :3 '" '" r v. a: <( Q. ::E o u w w .. ... u <( Q. ~ '" '" ~ u; o c ~ .. c ; III '0 ~ i3 .. o o N ::; '" '" :l .. '" Q. ~ E . E '5 Q. . o .. . u .~ . III E . 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