CITY OF ANAHEIM
________________________________________________________________________________
East Anaheim Master Plan of Sanitary Sewers
Financial Implementation Plan
____________________________________________________________________________________
June 2023
Prepared By
320 Goddard Way, Suite 200
Irvine, California 92618
GHD | East Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan | 11146303 | Page i Table of Contents
1. Executive Summary ...................................................................................................................... 1
1.1 General ............................................................................................................................... 1
1.2 Recommended Capital Improvements ............................................................................... 1
1.3 Funding Mechanisms ......................................................................................................... 3
1.4 Financial Analysis ............................................................................................................... 3
1.5 Implementation Plan ........................................................................................................... 3
2. Introduction ................................................................................................................................... 4
2.1 Background ......................................................................................................................... 4
2.2 Scope of Work .................................................................................................................... 4
3. Recommended Capital Improvements ......................................................................................... 5
4. Funding Mechanisms .................................................................................................................... 6
4.1 Federal Programs ............................................................................................................... 6
4.2 State Programs ................................................................................................................... 6
4.3 Local Financing Programs .................................................................................................. 6
4.4 Revenue Sources ............................................................................................................... 8
5. Financial Analysis ....................................................................................................................... 10
5.1 Sewer Impact Fees ........................................................................................................... 10
6. Implementation Plan ................................................................................................................... 11 Figure Index
Figure 1.1 Study Area Boundary ......................................................................................................... 2 Table Index
Table 1.1 Sewer Impact Fees (June 2023 Dollars) ............................................................................ 3 Table 4.1 Comparison of Financing Alternatives for Build-Out Sewer Needs ................................... 9 Table 5.1 Sewer Impact Fees (June 2023 Dollars) .......................................................................... 11 Appendix Index
Appendix A Impact Fee Calculations ............................................................................................. 13
GHD | East Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan | 11146303 | Page 1
1. Executive Summary
1.1 General
The City of Anaheim, hereon referenced as the City, has completed the East Anaheim Master Plan of Sanitary Sewers (EAMPSS) of which the study area is generally bounded on the north, east and south by the City limits, and on the west by the Orange Freeway (State Route 57). The study area is shown in Figure 1.1. The EAMPSS recommended approximately $7,805,000 (adjusted to June 2023 dollars) in sewer system improvements. Of this, approximately $7,006,000 (adjusted to June 2023 dollars) are related to build-out conditions related to land use changes from the City General Plan. This report assesses the financial mechanism for the EAMPSS build-out portion of the improvements described above.
1.2 Recommended Capital Improvements
For the existing flow condition, approximately $799,000 (adjusted to June 2023 dollars) in recommended capital improvements are required to address the needs identified in the EAMPSS.
To address the build-out flow needs, an addition of approximately $7,006,000 (adjusted to June 2023 dollars) are required which brings the total to approximately $7,805,000 (adjusted to June 2023 dollars) of improvements. These values were adjusted from the June 2022 dollars reported in the EAMPSS to account for inflation.
The EAMPSS provided planning level cost that addresses build-out deficiencies. Amendments to the EAMPSS, sewer studies, and detail design may take place subsequently. At these stages, improvement recommendations and the associated construction cost may differ from the EAMPSS.
The City can distribute fundings as needed based on the recommendations at the design level as long as the build-out deficiencies are addressed.
For the EAMPSS study area, the City has reported no remaining balance to be recuperated from build-out condition sewer improvements recommended by the Combined East Anaheim Area Master Plan of Sanitary Sewers (CEAAMPSS), which is the previous sewer master plan update completed in December 2005. Conversely, the City has reported a surplus of approximately $58,000 in Development Impact Fee collected to date for the study area. This surplus amount will reduce the construction cost to be financed for the build-out improvements. With this adjustment, this report recommends the financing for the approximately $6,948,000 (June 2023 dollars) in build-out improvements recommended in the EAMPSS.
LEGEND
City of Anaheim Limits
EAMPSS Study Area Boundary
0 0.5 1
Miles
FIGURE 1.1
Project No.
Revision No. -
11146303
Date 07/15/2022
CITY OF ANAHEIM
EAST ANAHEIM MASTER PLAN
OF SANITARY SEWERS
Map Projection: Lambert Conformal Conic
Horizontal Datum: North American 1983
Grid: NAD 1983 StatePlane California VI FIPS 0406 Feet
Paper Size ANSI B
o
Data source: Sources: Esri, HERE, Garmin, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), NGCC, © OpenStreetMap contributors, and the GIS User Community. Created by: pwleung
G:\111\11146303 City of Anaheim2017 E MP\08-GIS\Maps\Deliverables\EAMPSS Report\Figure
1.1 - Study Area Boundary.mxd
Print date: 15 Jul 2022 - 10:43
STUDY AREA BOUNDARY
GHD | East Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan | 11146303 | Page 3
1.3 Funding Mechanisms
From the previous Financial Implementation Plan for the CEAAMPSS, funding mechanisms that were investigated included financing pay-as-you-go using impact fee revenues, community rehabilitation and infrastructure financing districts repaid by tax increment financing, and traditional assessment districts. It was determined pay-as-you-go using impact fees is the preferred approach for the City. This report updates the impact fees based on the latest completed EAMPSS.
1.4 Financial Analysis
Impact fees were estimated by dividing costs allocated to new users by the project ed increase in wastewater flows at build-out condition. The costs allocated to new users are based on the build-out capital improvement project costs reported from the EAMPSS in June 2022 dollars. Wastewater flows were estimated using the EAMPSS hydraulic model results. The impact fees proposed in this report are adjusted to June 2023 dollars. According to the Engineer News-Record (ENR), the Construction Cost Index (CCI) for the Los Angeles area has increased by approximately 12% at the time of this report (June 2023) compared to June 2022 when the EAMPSS capital improvements were recommended. The fees should be adjusted annually based on the ENR CCI or other comparable indices. The impact fees are shown by customer classification in Table 1.1. For the purpose of assessing impact fees, parcels with “Mixed Use High” land use were assessed under the “Multi-Family” category, and parcels with “Mixed Use Non Residential” land use were assessed under the “Commercial” category, similar to the assessment methods used for West Anaheim and Central Anaheim areas of the City.
Table 1.1 Sewer Impact Fees (June 2023 Dollars)
Land Use Unit EAMPSS Area
Single Family Per DU $491
Estate Per DU $566
Multi-Family Per DU $421
Commercial Per 1,000 sq ft GFA $370
Industrial Per 1,000 sq ft GFA $111
Institutional Per 1,000 sq ft GFA $270
DU – Dwelling Unit
GFA – Gross Floor Area
1.5 Implementation Plan
The City should continue to implement the sewer impact fee. The sewer impact fee is based on flow and will provide equity among customer classifications. The City should charge an incremental impact fee to account for the sewer flow increases from the land development or redevelopment.
Once these fees are established by the City Council, the City should monitor the condition of the projects funded by pay-as-you-go to determine if other funding sources should be pursued.
GHD | East Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan | 11146303 | Page 4
2. Introduction
Existing and build-out sewer deficiencies are addressed by the City of Anaheim Municipal Code in the following:
1. Existing deficiencies are addressed by the current users in the form of a sewer user fee.
2. Build-out deficiencies caused by new developments are addressed by these new developments in the form of sewer improvements made by the developer at their cost or through a sewer impact fee charged to the developer during permitting.
The City has completed the East Anaheim Master Plan of Sanitary Sewers (EAMPSS) recommending approximately $7,805,000 (adjusted to June 2023 dollars) in sewer system improvements. Of this, approximately $7,006,000 (adjusted to June 2023 dollars) are related to build-out conditions related to land use changes from the City General Plan.
This report assesses the financial mechanism for the EAMPSS build-out portion of the improvements described above plus the reimbursement of the outstanding balance of uncollected funds for the CEAAMPSS build-out sewer improvements already constructed.
2.1 Background
The EAMPSS study area, shown in Figure 1.1, is generally bounded on the north, east, and south by the City limits, and on the west by the Orange Freeway (State Route 57). The EAMPSS study area consists of approximately 14,550 acres in gross area and approximately 852,000 linear feet (LF) of sewer pipelines that serve a population of approximately 60,500 people per the 2020 census.
The area is essentially fully developed and designated as a mix of residential , commercial, and industrial land uses. The wastewater from the EAMPSS study area predominantly drains into various Orange County Sanitation District (OC San) trunk sewers for further treatment and final discharge.
OC San trunk sewers within the EAMPSS study area are located on Knott Avenue, Western Avenue, Orange Avenue, Magnolia Avenue and Euclid Avenue. Near the boundary of the EAMPSS study area, there are a small number of City sewer mains that drain into neighboring cities including City of Placentia and City of Orange and a handful of sewer connections from those neighboring cities connect to the City’s sewer system.
The EAMPSS report has identified one basin area with sewer main hydraulic deficiencies under the Existing Condition, and the number of deficient segments remains the same through the Build-Out Condition. The basin area is collectively referred to as Basin Area EX-1/BO-1. Under the Build-Out Condition, two additional basin areas (Basin Areas BO-2 and BO-3) were identified with sewer main hydraulic deficiencies. Capital improvements will be needed to address these deficiencies.
2.2 Scope of Work
1. Define the needs to establish sewer funding mechanism based on a review of the recommended capital improvements.
2. Review funding mechanisms.
3. Develop a financial plan describing the funding mechanism.
4. Prepare financial implementation plan.
GHD | East Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan | 11146303 | Page 5
3. Recommended Capital Improvements
Analysis of the existing collection system within the EAMPSS Study Area under peak flow conditions revealed sewer needs in one area in the eastern portion of the system. The total length of pipe recommended for existing sewer capacity improvement was 471 LF at a cost of approximately $799,000 (adjusted to June 2023 dollars). A detailed description of the existing sewer needs is presented in the EAMPSS report.
The peak flow analysis for build-out condition identified additional pipe segments for improvement throughout the study area. The pipe segments consist of a cumulative total of 3,988 LF (an addition of 3,517 LF over the existing sewer needs) at a cost of approximately $7,805,000 (adjusted to June 2023 dollars). The additional incremental cost of the 3,517 LF of build-out needs is approximately $7,006,000 (adjusted to June 2023 dollars). The length of pipe improvement needed under the existing condition is limited since the EAMPSS study area was developed more recently compare other portions of the City. In addition, the development of a significant portion of the EAMPSS study area was guided by various City Specific Plans, which outlined the sewer needs of the areas based on the proposed development of the area. The wholistic approach to the development of the EAMPSS study area helped to properly size the sewer infrastructure and reduced the existing condition sewer needs.
Since the study area is fully developed, future development consists mainly of redevelopment of existing land uses such as the conversion of existing non-residential parcels into mixed-use parcels, or the redevelopment of existing residential parcels into higher density residences . The build-out condition flows were assessed based on the maximum building density using the parcel’s General Plan land use. The significantly higher pipe improvement length and cost for the build-out needs compared to the existing needs suggest the study area has ample potential for higher density developments based on the allowable building densities. These build-out sewer needs will become emerge once these parcels are due for redevelopment. The unit pipe improvement cost is also significantly higher than the City’s two other sewer master plan updates that were adopted in the past couple years. This is mostly due to the rising construction cost within the past year and inflation of the overall economic climate.
A detailed description of the build-out sewer needs is presented in the EAMPSS report. The EAMPSS provided planning level cost that addresses build-out deficiencies. Amendments to the EAMPSS, sewer studies, and detail design may take place subsequently. At these stages, improvement recommendations and the associated construction cost may differ from the EAMPSS.
The City can distribute fundings as needed based on the recommendations at the design level as long as the build-out deficiencies are addressed.
For the EAMPSS study area, the City has reported no remaining balance to be recuperated from build-out condition sewer improvements recommended by the Combined East Anaheim Area Master Plan of Sanitary Sewers (CEAAMPSS), which is the previous sewer master plan update completed in December 2005. Conversely, the City has reported a surplus of approximately $58,000 in Development Impact Fee collected to date for the study area. This surplus amount will reduce the construction cost to be financed for the build-out improvements. With this adjustment, this report investigates the financing for the approximately $6,948,000 (adjusted to June 2023 dollars) in build-out improvements recommended in the EAMPSS.
GHD | East Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan | 11146303 | Page 6
4. Funding Mechanisms
This section describes the funding and revenue sources for proposed sewer capacity projects.
Funding Sources include Federal, State, and Local Financing Programs. Revenue sources include ad valorem taxes, special districts, and developer imposed impact fees. Funding sources are explored that are not dependent on user charge revenue. The sources of funds for new capital projects are described, but this chapter does not address the amount of funds the City could raise or the repayment impacts. These sources of funding are summarized in Table 3-1.
4.1 Federal Programs
A computerized search of federal financial programs was performed. The federal search, which did not turn up any promising leads, essentially responded with economic development programs and watershed programs that are not applicable to Anaheim. However, there is a potential for positive infrastructure programs, such as nationwide stimulus infrastructure programs, to implemented in the future. The City may elect to apply for these programs once they become available as a supplemental funding mechanism for the proposed sewer improvement projects.
4.2 State Programs
A review of state programs available at the time of writing did not identify any financing programs that are directly applicable to sewer projects. While the City has successfully received state grant funds for construction projects, financing programs designed for other infrastructure that may include sewer improvements as a secondary feature were not examined for the purpose of this financial plan. Similar to the federal programs, the City may elect to apply for suitable state level infrastructure programs when they become available.
4.3 Local Financing Programs
4.3.1 General Obligation Bonds
General obligation bonds are debt instruments that are backed by the full faith and credit of the issuing municipality. They are generally repaid by ad valorem taxes. They are typically used to fund projects that serve the entire community and are for projects that do not provide direct sources of revenues such as user charges. They must be approved by two-thirds (2/3) vote of the City’s registered voters.
4.3.2 Sewer Revenue Bonds
Sewer revenue bonds are debt instruments backed by a pledge of the operating revenues of t he sewer enterprises. These bonds do not require a vote. This pledge of revenues means the City needs to maintain a sewer user charge that creates a net operating income that covers the cost of the debt service plus typically an additional amount referred to as coverage, typically ranging from 15 to 25 percent.
4.3.3 Districts
Most of the commonly used sources of debt for sewer facilities involve special districts. The interest rates on these sources of debt are not subsidized, as are some of the state and federal loans, and
GHD | East Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan | 11146303 | Page 7 will vary with market conditions and the time of the sale. For the last several years, these rates have been in the range of 6 to 7 percent, but currently are slightly lower. Several special districts are described below.
Assessment Districts
Assessment Districts formed under the conventional statutes (Improvements Act of 1911, Municipal Improvement Act of 1913, and Improvement Bond Act of 1915) provide some of the less costly development money available because of the real estate security. Assessment districts do not require a vote, but a protest hearing by more than 50 percent of the property owners can stop the proceedings. Assessment districts are initiated by petition of the owners of 60 percent of the property owners in the proposed district or by action of the City Council.
Mello-Roos Assessment District
The Mello-Roos Community Facilities Act authorizes cities, counties, and special districts to form “community facilities districts (CFD)” to finance the construction, improvement, or purchase of public facilities that benefit a clearly defined service area. Two or more government agencies may form a joint community facilities district. All government agencies with jurisdiction in the proposed district boundary must agree to the formation of the district.
The community facilities district may issue bonds if approved by two-thirds of voters within the district. Bonds are repaid through special tax assessments. The assessment may not be strictly proportionate to property value. Unlike special assessment districts, the tax does not have to be based directly on benefit derived from the public facilities, although it may be so. Taxes have been based on acreage, street frontage, or square footage of buildings.
Infrastructure Financing Districts
Infrastructure Financing Districts are formed in proceedings similar to the formation of a Mello-Roos Community Facilities District and, once formed, can use the property tax increment resulting from new development in the District to finance capital facilities. The act to establish these districts became law in 1991. All projects must have community-wide significance, the district must have the consent of affected taxing entities, the district cannot overlap redevelopment project area, and a two - thirds vote is required to create the district.
Community Rehabilitation District
In 1985, the State Legislature passed the Community Rehabilitation District Law to provide a way to finance the repair and enlargement of existing public facilities. The facilities must have a useful life of at least 5 years and include streets, water, sewer and drainage facilities, public buildings, etc. The district revenue source is tax increment financing. Rehabilitation districts must be mutually exclusive of redevelopment project areas. The district may sell bonds, but this requires approval of a simple majority of the voters within the district. This voting approval limits the usefulness of this financing method.
4.3.4 Developer Imposed Programs
Developer imposed programs can be used to fund improvements. One approach is for the developer to agree to build the improvements as part of the development. Another approach involves revenues
GHD | East Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan | 11146303 | Page 8 from developer impact fees. This method typically involves pay-as-you-go where impact fees would be collected in a special fund until enough money had accumulated to begin construction.
A third approach would be to issue a revenue bond to obtain upfront construction funding based on the pledge of future impact fees. However, this is unconventional and would require a large reserve fund and may also require a guarantor other than the City. Other options may prove to be more effective.
4.4 Revenue Sources
4.4.1 Ad Valorem Taxes
To issue general obligation bonds, a two-thirds majority vote to incur the debt and its repayment is required. This repayment is in the form of ad valorem taxes. The amount of general obligation bonds that can be issued is dependent on the other general obligations outstanding and the total assessed valuation of the City.
4.4.2 Assessment Districts (1991, 1913, and Mello-Roos) The formation of assessment districts create their own direct revenue source. The project costs are spread to property owners based on an allocation of costs in proportion to the property’s benefit or on a tax formula. The costs and benefits received are used to create an equation that spreads cost equitably among the benefiting properties. This allocation becomes a lien on the property if the assessment is not paid.
4.4.3 Infrastructure Financing and Community Rehabilitation Districts Both of these districts generate revenue on a tax increment basis. Tax increment revenues are calculated as follows: the property taxes collected from properties within the boundaries at the time the district is formed are the frozen base, and the additional amount collected above this amount is the tax increment. Revenue generation will depend on the amount of increased property values resulting from the planned improvements. Tax increment revenue also tends to lag a few years after the improvements are put in place.
4.4.4 Additional User Charges
Existing user charges are set to cover operations, maintenance, and rehabilitation costs and any existing capital improvements or debt service. Financing additional improvements would require an increase in user charges. Increasing user charges would require the City to go through the public notification process before a rate increase would be approved.
4.4.5 Impact Fees
For new development, revenues can be generated by imposing impact fees. The magnitude of these fees is dependent on the costs attributed to new development and the City’s philosophy on collecting these fees. The impact fee calculation will be regulated by Section 66000 of the California Government Code, which governs impact fees from not being more than the costs that can be attributed to each new user.
Table 4.1 Comparison of Financing Alternatives for Build-Out Sewer Needs Name Type of
Financing Amount Available Terms Revenue
Sources
Voter Approval
Required?
Minimum Time
to Implement
Likelihood of
Obtaining Financing Other Comments
Pay-As-You-Go Cash Depends on level of
charges None Impact Fees No -
This method will not
generate sufficient
revenue
improvements in the
short term
Revenue Bond City Obligation Depends on revenue
stream
10-30 years
Interest 6 to 8% Impact Fees No 6-12 months Low, unconventional Needs Guarantor other than City
Tax Allocation Bond Redevelopment
agency debt
Depends on tax
increment available
10-30 years
Interest
6 to 8½%
Tax Increment No 18 months
Low, previous
redevelopment
project rejected
General Obligation
Bond City Obligation
Dependent on other
GO bonds and total
assessed valuation
20-30 years
Interest 5 to 6% Ad Valorem Tax Yes, 2/3 24 months Low (Voter approval) Infrastructure
Financing District District Obligation Depends on tax
increment available Unknown Tax Increment Yes, 2/3 within District 24 months
Low (Voter approval)
Not yet used in
California
Cannot overlap
redevelopment area
Community
Rehabilitation
District
District Obligation Depends on tax
increment available Unknown Tax Increment Yes, 2/3 within District 24 months
Low (Voter approval)
Not yet used in
California
Cannot overlap
redevelopment area
Conventional
Assessment District
(1911, 1915)
District Obligation Depends on level of
assessment
10-30 years
Interest 5 to 7%
Property
Assessments
No, Protest
Hearing 6 months OK, should have
diversity of ownership
Mello-Roos
Community
Facilities District
District Obligation Depends on level of
assessment
10-30 years
Interest 5 to 7%
Property
Assessments
Property Owner
Election, 2/3
Vote
12 months Depends on stability
of revenue
Timing depends on
election
GHD | Eest Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan | 11146303 | Page 9
GHD | East Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan | 11146303 | Page 10
5. Financial Analysis
From the previous Financial Implementation Plan for the CEAAMPSS, there are three distinct methods for financing sewer capital projects: the first relies on impact fees collected in a special fund, the second would be general obligation bonds that serve the entire community, while the third method would use assessment districts to fund capital costs. The earlier study found that using impact fees to generate funds for system improvements was preferred (and is currently being used by the City). Also, City staff found that impact fees were commonly used in neighboring cities.
The financial analysis incorporates the capital cost estimates described in Section 3. The analysis also uses the EAMPSS hydraulic model to estimate sewer flows. Impact fees were estimated based on wastewater flow contributions to the system.
5.1 Sewer Impact Fees
Section 3 described the capital costs required to upgrade and expand the sewer system. Those costs were allocated approximately 10% to existing users and 90% to new users. The costs allocated to new users can be recovered from an impact fee.
Impact fees were estimated by dividing costs allocated to new users by the projected increase in wastewater flows at build-out. The previous CEAAMPSS divided the East Anaheim area into four zones for assessing the impact fees, designated as Zones A through D. Zones A and B corresponded to two model areas with sewer needs and were assessed with sewer impact fees of up to $1,296 per unit. Zone C corresponded to the rest of the East Anaheim area excluding the Mountain Park area and was exempted from an impact fee due to the lack of build -out sewer needs.
Zone D corresponded to the undeveloped Mountain Park area, in which the sewer needs were to be funded through developer mitigation.
Since the last master plan update, the Mountain Park Specific Plan has been rescinded and the area has been designated for preservation as Open Space. In addition, the City has shifted its approach to assessing the sewer impact fees for the recently adopted sewer master plan updates for the West Anaheim and Central Anaheim areas. The number of improvement needs have significantly decreased over time as the City constructed sewer improvements to rectify the sewer needs identified in past master plan updates. Therefore, the City has adopted a single zone approach for assessing the impact fee for the West Anaheim and Central Anaheim areas, with the general consensus that the sewer improvement projects will improve the overall health of its sanitary sewer system and the results of the improvements will benefit the residents and business of the entire area. The same approach is implemented to fund the recommended build-out sewer improvements projects for the EAMPSS study area. This will ensure consistency of the sewer impact fee as a funding mechanism for the improvement projects.
Wastewater flows and estimated cost for the recommended capital improvements from the EAMPSS were used to calculate impact fees (Appendix A). The costs in the EAMPSS were reported in June 2022 dollars. According to the Engineer News-Record (ENR), the Construction Cost Index (CCI) for the Los Angeles area has increased by approximately 12% at the time of this report (June 2023) compared to June 2022. Therefore, the costs were adjusted using the latest available index data from June 2023 when assessing the impact fee to ensure the fee is reflective of the construction environment. The impact fees proposed in this report are in June 2023 dollars. The impact fees
GHD | East Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan | 11146303 | Page 11 should be adjusted annually based on the ENR CCI or comparable indices. The impact fees are shown by customer classification in Table 5.1.
Table 5.1 Sewer Impact Fees (June 2023 Dollars)
Land Use Unit EAMPSS Area
Single Family Per DU $491
Estate Per DU $566
Multi-Family Per DU $421
Commercial Per 1,000 sq ft GFA $370
Industrial Per 1,000 sq ft GFA $111
Institutional Per 1,000 sq ft GFA $270
DU – Dwelling Unit
GFA – Gross Floor Area
Compared to the existing sewer impact fee determined from the previous CEAAMPSS, the sewer impact fee proposed in this report are lower for residential parcels in general, and higher for non-residential parcels. The overall cost for the build-out improvements recommended in the EAMPSS is significantly higher than the build-out improvement costs recommended in the CEAAMPSS due to the substantial rise in construction costs and the longer overall pipe length to be improved. The lowered fees for residential parcels correlate to the City’s updated approach of assessing impact fee for the East Anaheim area as a whole instead of separate tributary areas.
The cost of the improvement is being dispersed throughout the area and therefore involves a larger variety of land uses as well.
6. Implementation Plan
The City should implement the sewer impact fee as discussed in Section 5. The sewer impact fee is based on flow and will provide equity among customer classifications. The City should charge an incremental impact fee to account for the sewer flow increases from the land development or redevelopment. Once these fees are established by the City Council, the City should monitor the funds received to determine if other funding sources should be pursued.
Appendix A
Impact Fee Calculations
Total Calculations
Existing $798,824 A
Expansion $7,005,679 B
Buildout $7,804,503 C = (A+B)
$57,800 D
Total Cost for Sewer Impact Fee Assessment $6,947,879 E = (B-D) Total Calculations
Existing 8,268,171 F
Expansion 3,680,489 G
Buildout 11,948,660 H = (F+G)
Average
Flow/Unit
(gpd)
I = (E÷G) x 1000
Single Family per unit 260 $491
Estate per unit 300 $566
Multi-Family per unit 223 $421
Commercial per 1,000 sq ft of gross floor area 196* $370 Industrial per 1,000 sq ft of gross floor area 59* $111 Institutional per 1,000 sq ft of gross floor area 143* $270 * Estimated using the EAMPSS Flow Factor multiplied by the Floor Area Ratio per the City General Plan.
Wastewater Flows (gpd)
Land Use
Cost per Unit
(June 2023
Dollars)
Current Remaining Funding from East Anaheim Development Impact Fee Collection Calculations
Cost per 1,000 gallons per day $1,888
Table A-1: Sewer Impact Fee Summary
Capital Cost of Improvements (Adjusted to June 2023 dollars) Avg Flow/Unit x (I÷1000)
Land Use Acreage Units/
Acre
WW
Flow/Unit
WW Flow
(gpd)
Single Family 2,802 12,743 DU 4.55 260 3,313,700
Estate 745 932 DU 1.25 300 280,800
Multi-Family 696 6,624 DU 9.52 170 to 225 1,384,330
Mobile Home 43 347 DU 7.99 260 90,220
Hotel 17 749 Rooms 43.58 150 112,350
Commercial 621 - 130 to 2,000 695,856
Industrial 1,449 - 250 to 1,000 1,302,997
Institutional 447 - 500 to 2,800 354,625
Open Space 6,021 - 0 to 40 733,294
Total 12,841 8,268,171
Table A-2: Existing Flow Within the East Anaheim Master Plan Area Units
Table A-3: Build-Out Flow Within the East Anaheim Master Plan Area Land Use Acreage Units/
Acre
WW
Flow/Unit
WW Flow
(gpd)
Single Family 2,715 12,476 DU 4.60 260 4,843,620
Estate 1,185 1,246 DU 1.05 300 593,974
Multi-Family 854 7,354 DU 8.61 170 to 225 2,973,965
Mobile Home - - - - -
Hotel - - - - -
Commercial 449 - 2,000 980,638
Industrial 1,544 - 875 to 1,250 1,551,309
Institutional 290 - 500 to 1,000 174,364
Open Space 5,803 - 0 to 40 830,789
Total 12,841 11,948,660
Units
www.ghd.com