Development Impact FeesCity Council MeetingFebruary 13, 2023
Quick Recap• City Council Study Session on September 13, 2021• Current DIF Fees - Park and Public Facilities Fees• Addition of Public Safety and Transportation Facilities Fees in the Willdan Study• Subcommittee Meeting on May 9, 2022• One-time fees imposed on new developments to ensure that capital costs associated with growth are funded.• Impact fee revenue must be spent on new facilities or expansion of current facilities to serve the new development.
Items CostSubstation$9,200,000 Cost only includes construction, furnishings and equipment estimated over an 18-year planning horizon (Year 2040)Public Safety Vehicles 317,526 11 City-owned vehicles and a trailerElectronic Surveillance Equipment205,000 Simms, Thompson, Caruthers and Constitution ParksLicense Plate Reader Cameras, Radios and Vests126,742 Existing inventoryTotal Cost$9,849,268• Weighing factors: each worker - 4.7; each resident - 1.0. PUBLIC SAFETY FACILITIES FEES• Planned Facilities and Existing Inventory
Existing Transportation Facilities InventoryCostRoadways $65,579,210Curbs and Gutters 72,758,400Sidewalks 14,744,688Drive Aprons 16,028,203Curb Ramps 7,756,818Signals 25,900,000Streetlights 1,323,000Total Replacement Cost$204,090,319TRANSPORTATION FACILITIES FEES• Inventory
Existing Public Facilities (General Government) Inventory ValueCity Hall* $16,965,030City Yard* 10,782,015The Mayne Events Center and Fire Museum* 11,788,635Regional Transit Center and Parking Structure* 13,537,225Vehicles & Equipment 2,502,818Total Facilities$55,575,723*Value includes the cost of land and buildings
Special Use Facilities Inventory ValueSimms Park Social Hall, Gymnasium, Concession Facility and Outdoor Fitness Center $12,488,950Caruthers Park Activity Building, Concession Facility and Outdoor Fitness Center 2,628,500Aquatic Center and Two Pools 12,731,250Thompson Park Gymnasium and Announcer's Building/Ballfield Stands 5,604,760Park Maintenance Garages and Shops 799,570Vehicles and Equipment 253,021Total Special Use Facilities Inventory$34,506,051Improved Park Acres 69.64Special Use Facilities per Improved Park Acre $495,492Cost Per AcreSpecial Use Facilities $495,492Standard Park Improvements 440,000Land Acquisition 2,630,000Total Cost per Acre $3,565,492Parkland standard: 2.5 acres per 1,000 residents
AB 602 – Latest changes to laws on DIFs • Effective January 1, 2022, but some provisions effective on July 1, 2022• Requires the fees to be charged per square footage; City’s current residential DIFs are charged per dwelling unit. • Establishes new transparency requirements, guidelines for nexus studies, and public comment procedures for new or increased impact fees• Nexus studies must be updated every eight years• Adopt a capital improvement plan as part of any nexus study
Facilities Fees Calculation and Proposed FeesApproach / MethodologyTotal Estimated Cost of FacilitiesCost Per Unit of Demand (Capita / Trip)New Development Unit Fee (Residential / Nonresidential)Per Square FootLand UsePublic Facilities (General Gov’t) FeesParks and Recreation Facilities FeesPublic Safety Facilities Fees(New Fee)Transportation Facilities Fees(New Fee)TotalSingle Family(Current Fees)1$1.64$1.01 ↑ 62% $21.50 $15.60 ↑ 38%$0.13 $4.90 $28.17 $16.61 ↑ 70% Multi-Family(Current Fees)1$1.96 $1.19 ↑ 65% $25.73 $18.29 ↑ 41% $0.16 $3.93 $31.78$19.48 ↑ 63% Commercial(Current Fees)$0.45$0.19 ↑ 137% N/A $0.55 $8.66 $9.66 $0.19 ↑ 4,984% Office(Current Fees)$0.70 $0.23 ↑ 204% N/A $0.85 $10.97 $12.52$0.23 ↑ 5,343% Industrial(Current Fees)$0.25 $0.09 ↑ 178% N/A $0.30 $5.17 $5.72 $0.09 ↑ 6,256% 1Public and park facilities residential fees are currently charged per dwelling unit. For the ease of comparison, the dwelling unit fees have been converted into per square foot fees using the average size of single-family (1,400 sq. ft.) and multi-family (1,000 sq. ft.) homes in Bellflower.
Single and Multi-Family DIF Calculation ExamplesFacilities FeesMaximum Fees Per Sq. Ft.Current Fees Per Dwelling UnitTotal Fee IncreasePercentage of the Max Fees Adjusted FeeTotal Fee IncreasePublic Facilities $2,296 $1,416 $880100% $39,438 $16,183Parks 30,100 21,839 8,26190% $35,494 $12,239Public Safety 182 - 18280% $31,550 $8,295Transportation 6,860 - 6,86070% $27,607 $4,352Total Single Family Fees $39,438 $23,255 $16,18360% $23,663 $40859% $23,255 $-Facilities FeesMaximum Fees Per Sq. Ft.Current Fees Per Dwelling UnitTotal Fee IncreasePercentage of the Max Fees Adjusted FeeTotal Fee IncreasePublic Facilities $1,960 $1,185 $775100% $31,780 $12,307Parks 25,730 18,288 7,44290% $28,602 $9,129Public Safety 160 - 16080% $25,424 $5,951Transportation 3,930 - 3,93070% $22,246 $2,773Total Multi-Family Fees $31,780 $19,473 $12,30761% $19,473 $-1,400 Square Feet Development – Single Family Home1,000 Square Feet Development – Multi-Family Home
Commercial DIF Calculation ExampleFacilities FeesMaximum Fees Per Sq. Ft.Current Fees Per Sq. Ft.Total Fee IncreasePercentage of the Max Fees Adjusted FeeTotal Fee IncreasePublic Facilities $1,125 $475 $650100% $24,150 $23,675Public Safety 1,375 - 1,37590% $21,735 $21,260Transportation 21,650 - 21,65080% $19,320 $18,845Total Commercial Fees $24,150 $475 $23,67570% $16,905 $16,43060% $14,490 $14,01550% $12,075 $11,600Typical 2,500 square feet single tenant fast-food store in Bellflower
Agency Name Public/ Gen. Gov’tParks and RecreationPublic Safety Transportation Other* TotalCity of BellflowerSingle Family $ 2,296 $ 30,100 $ 182 $ 6,860 $ - $ 39,438Multi-family 1,960 25,730 160 3,930 - 31,780Commercial 1,125 - 1,375 21,650 - 24,150City of ArtesiaSingle Family $ 5,495 $ 12,052 $ - $ 3,020 $ 7,779 $ 28,346Multi-family 4,087 8,965 - 2,024 5,537 20,613Commercial 2,803 - - 11,743 2,068 16,614City of DowneySingle Family $ - $ 500 $ - $ - $ - $ 500Multi-family - 380 - - - 380Commercial ------*Other column includes various types of development impact fees such as fire, community center/aquatic, sewer, storm drain, water capital improvement, library, etc.
Agency Name Public/ Gen. Gov’tParks and RecreationPublic Safety Transportation Other* TotalCity of Paramount (assumes area of development is in a Multiple Residential or Planned Development with Performance Standards zones for park fees, and fire flow requirement of 0 to 750 g pm per 2 hours for water capital improvement fees )Single Family(3 bedrooms)$ - $ 1,000 $ - $ - $ 1,320 $ 2,320Multi-family(3 bedrooms)- 1,000 - - 1,320 2,320Commercial(fast-food with 30 seats in a 32,000 sq. ft. lot)- - - - 1,332 1,332 City of WhittierSingle Family $ 963 $ 5,667 $ - $ - $ 1,063 $ 7,693Multi-family 803 4,728 - - 886 6,417Commercial - - - - - -City of Cypress (transportation includes regional traffic improvement fees)Single Family $ - $ 23,421 $ - $ 647 $ - $ 24,068Multi-family - 23,421 - 552 - 23,973Commercial - - - 51,125 - 51,125
Agency Name Public/ Gen. Gov’tParks and RecreationPublic Safety Transportation Other* TotalCity of Long BeachSingle Family $ - $ 4,613 $ 703 $ 1,125 $ 496 $ 6,937Multi-family - 3,563 537 1,125 378 5,603Commercial - - 1,105 7,500 668 9,273 City of Lakewood (assumes land cost is $60.38 per sq. ft., 8 single family units per acre and 22 multi-family units per acre; This fee only applies to residential development occurring in subdivisions)Single Family $ - $ 15,774 $ - $ - $ - $ 15,774Multi-family - 12,257 - - - 12,257Commercial ------City of Cerritos does not have any development impact fees.Single Family $ - $ - $ - $ - $ - $ -Multi-family ------Commercial ------
Estimated Annual Revenue Increase – Fiscal ImpactFacilities Fees Estimated Annual Revenue IncreasePublic Facilities / General Government $15,000Parks and Recreation 105,000Public Safety10,000Transportation192,000Total Estimated Annual Revenue Increase –Facilities Fees$322,000
Development Impact Fees (DIFs) Ordinance and Proposed Ordinance Amendments•Repeal the existing DIF Chapter 3.24 and add a new consolidated Chapter 3.40 for all four DIFs. •Repeal BMC 3.36.060, Determination of Fair Market Value Remove the option to use an appraisal report to determine the amount of Park Facilities Fees due.•Repeal BMC 3.36.020, Reduction of Fees for Second Dwelling Unit (Recapture of the Reduced Fees with the Third Dwelling Unit)Remove the language that provides the second unit a 50% discount and the requirement to recover the discounted fee in the event a third unit is constructed.
Recommendation to the City Council:• Open the public hearing; take documentary and testimonialevidence; and after considering the evidence, adopt ResolutionNo. 23-06 adjusting existing and adding new developmentimpact fees; and• Read by title only, waive further reading, and introduceOrdinance No. 1424 to impose development impact fees forpublic, park, public safety, and transportation facilities byrepealing BMC Chapter 3.24 and Sections 3.36.020 and3.36.060 and adding a new Chapter 3.40; or• Alternatively, discuss and take other action related to this item.