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HomeMy WebLinkAboutAGENDA REPORT 2023 0719 CCSA REG ITEM 08A POWERPOINT1 DEVELOPMENT IMPACT FEE UPDATE CITY OF MOORPARK May 25, 2023 2 AGENDA •Development Impact Fees Overview •Rules and Limitations •History •Methodology, Calculations and Fees •Fee Comparisons •Question and Answers 3 PROJECT TEAM Megan Quinn Director/Project Manager Municipal + District Finance Connie Fife Senior Analyst Municipal + District Finance 4 A one-time fee intended to ensure new development pays a fair share to mitigate their Impacts •Who pays the fees? Developers pay, typically at the time of building permit issuance. •What are the Fees typically used for? o General Government Facilities o Police Facilities o Fire Facilities o Park Facilities o Water Facilities o Sewer Facilities o Storm Drainage Facilities o Transportation Facilities WHAT IS A DEVELOPMENT IMPACT FEE 5 •Why are impact fees important: New development pays for their fair share of new infrastructure without burdening existing development. Development impact fees equitably distribute the costs related to new infrastructure to all potential new developments. Balances fee levels with desired economic growth. •Why are fees updated/adjusted? Without an update to old fees and annual adjustments to adopted development impact fees, there would not be adequate funding to support infrastructure for future growth as estimated by the City’s General Plan. Updated analyses and methodology to comply with the legal requirements of the Mitigation Fee Act (AB1600) and AB602 DEVELOPMENT IMPACT FEES CONTINUED 6 RULES AND LIMITATIONS •Fees can only fund capital costs o Fee cannot fund ongoing maintenance or salaries •Fees cannot fund existing deficiencies •Only includes cost attributable to new development o Fees can only fund new development’s fair share based on a rational nexus test •Funds must be used for the projects in which they were intended o If not spent, funds must be returned to the property owner Must meet Annual and Five-Year Reporting requirements per AB 1600 7 ASSEMBLY BILL (AB) 602 8 •Identify Impact Fees per the Mitigation Fee Act •Cannot fund maintenance •Cannot fund salary positions •Tied to impacts caused by new developments •Fee Update Activities o Met with City Hall Staff to confirm future growth projections and facility inventory and valuation o Updated costs and reviewed methodology and assumptions HISTORY OF MOORPARK FEES Current Fees Notes Traffic System Management Combined for new Citywide Transportation fee. Citywide Traffic Mitigation Fee Combined for new Citywide Transportation fee . Crossing Guard Fund No change –not an AB1600 fee . Library Facilities Included in Nexus Study. Open Space Maintenance No change.Not included as it is for maintenance. Tree and Landscape Maintenance No change.Not included as it is for maintenance. Art in Public Places No change –not an AB1600 fee . Park Improvement No update to Quimby Fee. Updating Park and Recreation Fee. Los Angeles A.O.C.Combined for new Citywide Transportation fee . Tierra Rejada/Spring A.O.C Combined for new Citywide Transportation fee . Casey/Gabbert A.O.C Fee rescinded on 3/15/2017. Freemont Storm Drain A.O.C No change.Development Agreement fee . Walnut Canyon Traffic Noise Attenuation No change. Development Agreement / Area Specific fee. Police Facilities Fund Included in Nexus Study. 9 •Addition of a City Hall Improvements Fee •Level of Service, Existing Inventory, and Planned Facilities Methodology Updates •Residential fees charged per square foot 3 1 2 CHANGES TO THE FEE PROGRAM Combination of four fee programs into one “Citywide Transportation Fee”: •Traffic System Management •Citywide Traffic Mitigation Fee •Los Angeles Area of Contribution •Tierra Rejada/Spring Road Area of Contribution 10 LIBRARY FACILITIES FEE PLANNED FACILITIES METHOD •17,500 SF Library to serve existing service population o Sized per the Civic Center Master Plan •4,500 SF Library Expansion to serve future service population o Future development will contribute to the cost of the 4,500 SF future library expansion •Cost per SF estimate using the current Cost per SF for the 17,500 SF Library project o Escalation of fee will hopefully keep in line with future inflation Future Users Library Expansion Library Expansion Square Feet 1 4,500 Cost per SF for Library Space $1,714.29 Cost of Library Expansion Attributable to Future Population $7,714,305 Future Service Population Growth (Capita)15,923 Cost per Capita $484.48 1 Expanded library square footage needed at buildout provided by City staff. 11 LIBRARY FACILITIES FEE PROPOSED FEE & COMPARISON Existing 1 Existing (Adjusted) 2 Proposed % Change between Proposed and Existing (Adjusted) Library Land Use Single Family (per SF)$0.38 $0.71 $0.73 2% Multi-Family (per SF)$0.44 $0.83 $1.02 18% Commercial (per 1,000 SF)$395.00 $740.10 $188.22 -293% Office (per 1,000 SF)$370.00 $370.00 $376.45 2% Industrial (per 1,000 SF)$370.00 $693.25 $75.29 -821% 1 2 Existing (Adjusted) Fees reflect the amount that would be in effect as of March 2023 if the fee had been indexed annually with the LA Region ENR CCI since the last fee update. Existing Fees are charged per dwelling unit for Residential Land Uses. To calculate the comparison between existing and proposed fees, existing fees per dwelling unit were converted to per SF based on the SF assumptions of residential units within this study. Fee 12 PARK AND RECREATION FEE FACILITY STANDARD & EXISTING INVENTORY METHOD Park Development Cost Value Park Development Cost (per Acre)1 $553,001 Required Acres/1,000 Residents2 5.00 Park Development Cost per 1,000 Residents $2,765,005 Total Park Cost per Capita $2,765.01 1 2 Based on the General Plan level of service. Park Development Cost estimate uses Pleasant Valley Recreation & Park District (City of Camarillo) average development cost per acre amount ($484,000) identified in the Pleasant Valley Recreation and Park District Park Impact Fee Nexus Study, April 2021 (Appendix A). The cost estimate is adjusted to ENR CCI for Los Angeles Region (April 2021 - 12139.56, March 2022 - 13870.23). Recreation Facility Value Recreation Square Footage 42,259 Recreation Facility Value 1 $12,631,552 Existing Service Population 36,395 Total Existing Level of Service per 1,000 Residents (1,161.12 Total Existing Level of Service per Capita (Cost)$347.07 1 Recreation Facility size and value based on the CJPIA Property Schedule (prepared by Alliant Insurance Services, Inc.), dated March 24, 2022. Increased to March 2023 dollars by ENR BCI for Los Angeles Region (March 2022 to March 2023). Park Per Capita Calculation Recreation Per Capita Calculation 13 PARK AND RECREATION FEE PROPOSED FEE •Includes cost for facilities only –excludes land •Park and Recreation Fee not charged on non-residential development •Comparison to existing unavailable -current Park and Recreation Fee negotiated within Development Agreements Land Use Park Facilities Cost Per Capita Recreation Cost Per Capita Density Park & Recreation Fee Per Unit Administration Fee Per Unit 1 Total Fee Per Unit (Rounded) Average Unit Size (SF) Total Fee per SF (Rounded) Residential Single Family $2,765.01 $347.07 3.60 $11,203.48 $560.17 $11,763.65 2,500 $4.71 Multi-Family $2,765.01 $347.07 2.80 $8,713.82 $435.69 $9,149.51 1,400 $6.54 1 An administrative fee of 5% is included for (1) legal, accounting, and other administrative support and (2) development impact fee program administration costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analysis. 14 CITY HALL IMPROVEMENT FEE PLANNED FACILITIES METHOD •New proposed fee •Future City Hall Construction will serve both existing and future service population •Costs allocated proportionately, with future growth contributing 28% Facility Amount Moorpark Future City Hall Cost 1 $46,899,880 Fair Share Allocation Total Future Service Population Growth 15,923 Total Buildout Service Population 57,175 Future Growth Fair Share Allocation 28% Future Growth Fair Share Cost $13,061,422 Total per Capita (Cost)$820.29 Source: 1 Construction cost estimate is provided by the City based on project cost of the new library (12/8/22). Anticipated construction is still far in advance (20+ years). Includes design cost of $1,899,880. 15 CITY HALL IMPROVEMENT FEE PROPOSED FEE Land Use Cost Per Capita Density 1 Subtotal Fee Administration Fee Total Fee (Rounded) Average Unit Size (SF) Total Fee per SF (Rounded) Residential (Fee per Unit)(Fee per SF) Single Family $820.29 3.60 $2,953.03 $147.65 $3,100.68 2,500 $1.24 Multi-Family $820.29 2.80 $2,296.80 $114.84 $2,411.64 1,400 $1.72 Non-Residential (Fee per 1,000 SF) Commercial $303.51 1.00 $303.51 $15.18 $318.69 Office $303.51 2.00 $607.01 $30.35 $637.36 Industrial $303.51 0.40 $121.40 $6.07 $127.47 1 Density factor used for non-residential is based upon number of employees per 1,000 Building SF. 16 POLICE FACILITIES FEE EXISTING INVENTORY METHOD •Renewed methodology •Police Service Center serves existing and future service population •Fee includes Police Facility and equipment costs Facility SF Value Police Services Center 1, 2 27,600 $21,431,765 Police Services Center Wash Shelter 1 900 $57,750 Facility Subtotal 28,500 $21,489,515 Buildout Service Population 57,175 Total Facility Buildout Level of Service per Capita (Cost)$375.86 Equipment3 Value 2009 Segway I2 Base Model $1,950 2009 Segway I2 Base Model $1,950 2010 Harley Davidson FLHTP Electra Glide $6,600 2012 BMW R1200TP $19,500 2016 Harley Davidson FLFLHTP $22,409 2016 Harley Davidson FLFLHTP $22,409 2018 Harley Davidson FLFLHTP $19,276 2019 Chevrolet Equinox $19,681 2019 Chevrolet Equinox $19,681 Equipment Subtotal $133,456 Existing Service Population 41,252 Total Existing Equipment Level of Service per Capita (Cost)$3.24 Total Level of Service per Capita (Cost)$379.09 Source: 1 Property size from City of Moorpark CJPIA Property Schedule (March 24, 2022). 2 3 Equipment list from City of Moorpark 2022 0324 Vehicle Schedule, vehicles older than 15 years were excluded. Values increased to March 2023 dollars by ENR BCI for Los Angeles Region (March 2022 to March 2023). Value from March 21, 2018 Agenda Report Public Hearing to Consider Resolution Updating the Police Facilities Fee, brought forward to 2023 dollars via ENR CCI. 17 POLICE FACILITIES FEE PROPOSED FEE & COMPARISON Existing 1 Existing (Adjusted) 2 Proposed % Change between Proposed and Existing (Adjusted) Police Land Use Single Family (per SF)$0.47 $0.54 $0.57 5% Multi-Family (per SF)$0.83 $0.97 $0.80 -21% Commercial (per 1,000 SF)$750.00 $871.55 $147.27 -492% Office (per 1,000 SF)$750.00 $871.55 $294.56 -196% Industrial (per 1,000 SF)$750.00 $871.55 $58.92 -1379% 1 2 Existing (Adjusted) Fees reflect the amount that would be in effect as of March 2023 if the fee had been indexed annually with the LA Region ENR CCI since the last fee update. Existing Fees are charged per dwelling unit for Residential Land Uses. To calculate the comparison between existing and proposed fees, existing fees per dwelling unit were converted to per SF based on the SF assumptions of residential units within this study. Fee 18 TRANSPORTATION FACILITIES PROJECTS INCLUDED CIP Transportation Facility Project Status Total Project Cost 1 Amount Expended (Estimated as of 6/30/22) LA AOC (Fund 2014) SP/TR AOC (Fund 2015) Traffic System Management (Fund 2001) Citywide Traffic Mitigation (Fund 2002) Endowment (Fund 2111) Grants & Other Funds2 Transportation DIF Eligible Project Costs4 C0004 Moorpark Ave Widening Project (Casey to Third) - Includes street realignment at First St and Poindexter Ave (Prior Project 8057) and Rail Crossing Improvements (Prior Project 8038) Pending Staff Hire $2,815,620 $2,343,217 $0 $0 $0 $472,403 $0 $0 $472,403 C0021 LA Avenue Widening - Spring Road to Moorpark Ave Active Redesign $5,000,681 $3,277,956 $925,955 $0 $0 $0 $0 $796,770 $925,955 C0022 Spring Road Widening Active Construction $1,249,934 $475,366 $774,568 $0 $0 $0 $0 $0 $774,568 C0025 Route 23 North Alignment (Study)Pending $192,325 $192,325 $0 $0 $0 $0 $0 $0 $0 C0027 Underground Utility District No. 2 Pending $1,710,240 $240 $1,710,000 $0 $0 $0 $0 $0 $1,710,000 C0030 LA Avenue Widening - Shasta Avenue Active Construction $1,688,147 $1,678,147 $10,000 $0 $0 $0 $0 $0 $10,000 C0033 Los Angeles Avenue Undergrounding Pending $468,001 $26,694 $441,021 $0 $286 $0 $0 $0 $441,307 C0037 Arroyo Drive Bike/Ped Project Active Construction $1,030,000 $158,144 $0 $0 $223,820 $0 $0 $648,036 $223,820 M0040 LA Ave Traffic Signals/Fiber Optic Upgrade Pending $950,000 $14,345 $935,655 $0 $0 $0 $0 $0 $935,655 NA North Hills Parkway Overcrossing State Route 233 Pending $128,413,129 $0 $0 $0 $0 $0 $0 $0 $128,413,129 NA Realignment Study for Moorpark Ave - Poindexter/First See C0004 TBD $0 $0 $0 $0 $0 $0 $0 NA Moorpark Ave Sound Walls Estimate $3,168,000 $0 $0 $0 $0 $0 $0 $0 $3,168,000 Total Transporation Facilities Costs $146,686,077 $8,166,434 $4,797,199 $0 $224,106 $472,403 $0 $1,444,806 $137,074,837 Notes: 1 2 3 In May 2008, a feasibility study prepared by Parsons estimated the total construction cost to be approximately $85 million. Costs have been escalated using LA ENR CCI (Feb 2008 at 9183.42, February 2023 at 13908.31). Includes the Gabbert Road UPRR crossing cost. 4 DIF Eligible costs are calculated by taking the Total Project cost and subtracting the Amount Expended and Other Funding Sources Total Project Costs with an associated CIP number are identified in the CIP Budget for FY22/23 through 26/27. Other funding sources include: Federal & State Grants, Gas Tax, General Fund, etc. DIF Eligible Funding Other Funding Sources 19 TRANSPORTATION FACILITIES SUMMARY •Planned Facilities Method •Merge Transportation Fees for ease of administration and flexibility –keeping all originally identified transportation projects intact •Traffic System Management •Citywide Traffic Mitigation Fee •Los Angeles Area of Contribution •Tierra Rejada/Spring Area of Contribution •Identify Cost per Trip using Institute of Transportation Engineers trip generation assumptions for each land use Total Cost of Transportation Facilities 1 $137,074,837 Less: LA AOC Fund Balance 2 ($8,975,494) Less: SP/TR AOC Fund Balance 2 ($128,197) Less: Citywide Traffic Mitigation Contribution ($472,403) Less: Traffic System Management Contribution ($224,106) Total Cost of Fee Program Transportation Facilities $127,274,637 Future Trip Generation 57,875 Cost per Trip $2,199 1 Projected cost based upon CIP 22-23 Budget. 2 Fund balance as of November 30, 2022. Cost per Trip 20 TRANSPORTATION FACILITIES PROPOSED FEE & COMPARISON Land Use Cost Per Trip Trip Generation1 Employees per 1,000 SF Subtotal Fee Administration Fee Total Fee (Rounded)Total Fee Residential (per Unit)(per SF) Single Family $2,199 9.43 NA $20,737 $1,037 $21,774 $8.71 Multi-Family $2,199 5.64 NA $12,402 $620 $13,022 $9.30 Non-Residential (Fee per 1,000 SF) Commercial $2,199 8.71 1.00 $19,153 $958 $20,111 Office $2,199 3.33 2.00 $14,645 $732 $15,377 Industrial $2,199 5.05 0.40 $4,442 $222 $4,664 1 ITE 11.1 Edition Daily Trip Generation Rate. ITE 11th Edition notes: All land uses in the retail & services are entitled to a "pass-by" trip reduction of 60% if less than 50,000 SF or a reduction of 40% if equal to or greater than 50,000 SF. This Study assumes a 50% "pass-by" trip reduction. 21 TRANSPORTATION FACILITIES PROPOSED FEE & COMPARISON Existing 1 Existing (Adjusted) 2 Proposed % Change between Proposed and Existing (Adjusted) Citywide Transportation 3 Land Use Single Family (per SF)$4.54 $6.33 $8.71 27% Multi-Family (per SF)$7.76 $10.74 $9.30 -16% Commercial (per 1,000 SF)$5,820.11 $8,485.76 $20,111.00 58% Office (per 1,000 SF)$3,208.42 $4,464.67 $15,377.00 71% Industrial (per 1,000 SF)$3,208.42 $4,464.67 $4,664.00 4% 1 2 3 Existing (Adjusted) Fees reflect the amount that would be in effect as of March 2023 if the fee had been indexed annually with the LA Region ENR CCI since the last fee update. Existing Transportation Fee is calculated by averaging the per 1,000 Building SF rate of Spring/Tierra Rajada Road AOC Fee and the Los Angeles Ave AOC Fee and adding the Traffic System Management Fee. Existing Fees are charged per dwelling unit for Residential Land Uses. To calculate the comparison between existing and proposed fees, existing fees per dwelling unit were converted to per SF based on the SF assumptions of residential units within this study. Fee 22 FEE SUMMARY Land Use 1 Library Park & Recreation City Hall Police Citywide Transportation Residential Single Family $0.73 $4.71 $1.24 $0.57 $8.71 Multi-Family $1.02 $6.54 $1.72 $0.80 $9.30 Non-Residential Commercial $188 N/A $319 $147 $20,111 Office $376 N/A $637 $295 $15,377 Industrial $75 N/A $127 $59 $4,664 1 (Fee per Building Square Foot) (Fee per 1,000 Building Square Feet) An administrative fee of 5% is included in the fees shown for (1) legal, accounting, and other administrative support and (2) development impact fee program administration costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analysis. The administration fee is calculated on a fee by fee basis. Please refer to the individual fee calculation tables for a breakdown of the administration fee. 23 FEE COMPARISON -TRANSPORTATION Jurisdiction Single Family Multi-Family Commercial Office Industrial Moorpark (PROPOSED)8.71$ 9.30$ 20,111.00$ 15,377.00$ 4,664.00$ Moorpark (EXISTING)1,2 6.33$ 10.74$ 8,485.76$ 4,464.67$ 4,464.67$ Oxnard 4.19$ 3.53$ 7,037.80$ 10,813.11$ 5,505.79$ Thousand Oaks3 2.73$ 3.01$ 9,340.00$ 11,100.00$ 3,170.00$ Ventura 2.10$ 2.25$ 4,130.00$ 4,415.00$ 1,380.00$ Camarillo 1.20$ 1.20$ 19,130.00$ 5,916.00$ 2,027.00$ Simi Valley4 0.75$ 0.89$ 19,130.00$ 5,916.00$ 2,027.00$ Average 3.72$ 4.42$ 12,480.65$ 8,285.97$ 3,319.78$ 3 Thousand Oaks' non-residential land uses are charged per SF (converted to per 1,000 SF for this table). Furthermore, there are site specific traffic fees that are not shown in this table. (per square foot)(per 1,000 square feet) 4 Simi Valley charges a Traffic Impact fee on all land uses per trip of $107.50. Comparison uses Moorpark's assumption on trip generation for each land use. 1 Existing Fees are charged per dwelling unit for Residential Land Uses. To calculate the comparison between existing and proposed fees, existing fees per dwelling unit were converted to per SF based on the SF assumptions of residential units within this study. 2 Existing Transportation Fee is calculated by averaging the per 1,000 Building SF rate of Spring/Tierra Rajada Road AOC Fee and the Los Angeles Ave AOC Fee and adding the Traffic System Management Fee. The FAR assumption to calculate the per 1,000 Building SF is 0.35 for Commercial and 0.45 for Office/Industrial. Existing Fee does not include the Citywide Traffic Mitigation Fund Fee since that fee amount is negotiated. 24 PROPOSED FEE COMPARISON -PARK & RECREATION Single Family Multi-Family Jurisdiction Moorpark 1 4.71$ 6.54$ Simi Valley -- Camarillo2 3.09$ 3.88$ Thousand Oaks -- Oxnard 2.80$ 3.30$ Ventura3 0.69$ 0.78$ Average 2.82$ 3.62$ 1 Moorpark's multi-family land use is High Density (attached 4+ units). 2 Properties in Camarillo pay the Pleasant Valley Recreation & Park District Fee. 3 Assumes a 3 bedroom unit for Single Family and 2 Bedrooms for Multi-Family. (per square foot) 25 E-mail: megan.quinn@weareharris.com Phone: 916.306.5704 THANK YOU QUESTIONS?