CITY COUNCIL
AGENDA
Study Session
Wednesday, August 9, 2023
3:00 PM
City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
MAYOR
Rita Lamb
CITY COUNCIL MEMBERS
Mayor Pro Tem
Mark Carnevale
Councilmember
Nancy Ross
Councilmember
Raymond Gregory
Councilmember
Ernesto Gutierrez
• CALL TO ORDER
• ROLL CALL
• AGENDA FINALIZATION
At this time the City Council may announce any items being pulled from the agenda or continued to another date.
1. PUBLIC COMMENT
This is the opportun ity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. Public Comment will be limited to three (3) minutes.
2. CLOSED SESSION
A. Conference with Labor Negotiator Pursuant to Government Code Section 54956.6
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Agency Negotiator: Charles McClendon, City Manager
Represented Employees:
Cathedral City Professional Firefighters Association (CCPFA) and Cathedral City Firefighters Management Association (CCFMA)
B. Conference with Legal Counsel - Anticipated Litigation Pursuant to Paragraph (2) of Government Code § 54956.9
Anticipated Litigation: One (1) Case
3. STUDY SESSION
Normally no action is taken on Study Session it ems, however, the City Council reserves the right to give specific policy direction and take specific action as necessary. Presentation will be limited to 10 minutes unless other provisions are made in advance.
A. AB 1600 Fee Justification Nexus Study
Recommendation: This agenda item is for review and discussion.
B. East PACT Team Presentation
Recommendation: This is for presentation and information only.
C. Discussion on a Policy Authorizing the Acceptance of Electronic or Digital Signatures in Lieu of a written "Wet" Signature Recommendation: This item is for discussion and direction only, there will be no formal action taken.
ADJOURN
NOTES TO THE PUBLIC:
The City of Cathedral City complies with the Americans with Disabilities Act of 1990. If you require special assistance to participate in this meeting, please call the City Clerk’s Office at (760) 770-0322 at least 48 hours prior to the meeting.
If you desire to address the City Council during the meeting, please complete a Request to Speak Form available at the entrance and present it to the City Clerk. Speakers will be called upon at the appropriate time.
Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspectio n in the City Clerk’s office at City Hall located at 68 -700 Avenida Lalo Guerrero during normal business hours. In addition, such documents will be posted on the City’s website at www.cathedralcity.gov.
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Staff Report
City Council
Meeting Date: August 9, 2023
From: Charles McClendon, City Manager
Title: Conference with Labor Negotiator Pursuant to Government Code Section 54956.6
Agency Negotiator: Charles McClendon, City Manager
Represented Employees:
Cathedral City Professional Firefighters Association (CCPFA) and Cathedral City Firefighters Management Association (CCFMA)
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Staff Report
City Council
Meeting Date: August 9, 2023
From: Charles McClendon, City Manager
Title: Conference with Legal Counsel - Anticipated Litigation Pursuant to Paragraph (2) of Government Code § 54956.9
Anticipated Litigation: One (1) Case
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Staff Report
City Council
Item No. 3.A
Meeting Date: August 9, 2023
From: Stone James, Economic Development Director
Title: AB 1600 Fee Justification Nexus Study
RECOMMENDATION:
This agenda item is for review and discussion.
BACKGROUND:
During the 2020 Cathedral City (City) City Council goal -setting session, the Council directed staff to conduct a User Fee Study (USF), Cost Allocation Plan (CAP), and Development Impact Fee (DIF) study. These studies evaluate the City’s true cost of providing City services to new developments and voluntarily requested city services.
When the cost of providing City services is not fully recovered from new developments, the unreimbursed City service costs are deducted from the General Fund. Using General Funds to cover the costs incurred by new development decreases funds available to serve existing residents.
Development Impact Fees are one-time fees charged to new development. DIF fees are intended to pay for backbone infrastructure and capital facilities req uired to serve the new developments and new residents. Municipalities are prohibited from using DIF fees to fund ongoing operations, maintenance, or to make up for existing service deficiencies. DIF fees must be accounted for, set aside, and saved until th e municipality has the required funding to build the needed facilities. This study analyzed the following fees to provide: (i) Parks, (ii) Transportation, (iii) General Government Facilities, (iv) Fire Facilities, and (v) Police Facilities.
In Q3 2021, t he City reviewed, analyzed, and implemented an updated USF and CAP.
With the updated USF and CAP as a foundation, City staff issued a DIF request for proposal. After receiving and reviewing multiple qualified responses, the City selected the Clearsource Fi nancial/Harris and Associates team. The collective team (City, Clearsource, and Harris and Associates) began work in Q2 2022.
In October 2022, Harris and Associates updated the City Council on the progress made to date and remaining steps.
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During the June 28, 2023, Study Session, Council reviewed the first draft of the A.B. 1600 Fee Justification Nexus Study (Nexus Study). Harris and Associates provided a detailed overview of the Nexus Study, contrasting allowable new development impact fees with curre nt fees and comparing proposed development impact fees with fees charged by surrounding jurisdictions.
Since the June 28, 2023, Study Session, Staff received a comment letter from the Desert Valley Builder’s Association (DVBA). A copy of the July 7, 2023 , letter is attached. The Nexus Study has been updated to address DVBA’s comments. The Nexus Study was also updated to reflect current General Government, Police, and Fire Department vehicle inventories as well as additional details on future Fire Departme nt facility needs.
Cathedral City adopted the current A.B. 1600 Nexus Study in January 2006.
Construction costs between 2006 and 2023 have significantly increased. Due to this sizable construction cost increase, the Nexus Study supports an equally sizab le increase in future DIF fees.
The August 9, 2023, Study Session is an opportunity for the Council to (i) ask any additional questions on the Nexus Study, (ii) discuss any stakeholder group comments, and (iii) provide direction to staff on implementatio n of the fees. A copy of the updated Nexus Study was emailed to the DVBA, Building Industry Association, Southern California Gas Company, and Southern California Edison.
DISCUSSION:
On July 7, 2023, the DVBA provided a four -page comment letter. The July 7, 2023, letter outlined the following four areas of concern: (i) on -going DIF program administration fees being charged as a percentage of collected fees versus a flat fee; (ii) future fee adjustment procedures; (iii) development impact fees being used to correct existing deficiencies; and (iv) adequacy of current general government, police, and fire facilities to accommodate future service population growth.
(i) On-going DIF program administration fees being charged as a percentage of collected fees: The Mitigation Fee Act allows municipalities to charge a separate fee for the administration of the overall DIF fee program. DIF fee program administration includes tasks such as collecting, analyzing, engaging consultants, conducting studies, and reporting on bo th collected and expended funds. These tasks are technical and time -consuming to administer. Administrative fees may be charged on a flat fee basis or a percentage basis. The majority of municipalities Harris and Associates work with charge administrative fees on a percentage basis. Industry - standard administrative fees range from 3% to 6%. Charging on a percentage basis better equips municipalities to keep up with rising administration costs. Harris and Associates and City Staff recommend charging administ rative fees on a percentage basis. The Nexus Study recommends a 5% administrative fee. Additional details may be found on page 5 of the Nexus Study.
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(ii) Future fee adjustment procedures and updates: The DVBA believes there are no provisions for automatic fee updates based on Consumer Price Index (CPI) or Construction Cost Index (CCI) increases. City staff will conduct a public hearing whenever there is a proposed fee increase. (iii) Development impact fees being used to correct existing deficiencies: The DVBA points out a bright line distinction on the collection and usage of development impact fees for the construction of new facilities required to service future development. Development impact fees may not be used to correct existing facility deficiencies. In the revised Nexus Study, Harris and Associates explain that given the corrective steps the City is taking to correct existing deficiencies, State law allows the City to charge the development impact fees recommended in the Nexus Study. These corrective steps include adopting the three (3) acres of parkland per 1,000 residents level of service in both the General Plan and Municipal Code (Section 9.106.040). Additionally, even though the City suspended the Parks and Recreation Department in 2003 due to budget con straints, the City has maintained an active five-member citizen -based Parks and Community Events Commission (PCEC). PCEC assesses the
community’s recreational services and facilities needs and advise s the City Council on funding, recreational programing, p ark facilities maintenance and usage, and other opportunities to improve utilization, quality, and quantity of parks within the City . The City continues to proactively evaluate opportunities and implement changes to improve pedestrian and bikeways throughout the City . Recently, the City Council voted to utilize a California State grant to add a Class IV bike path along both sides of Perez Road between Cathedral Canyon and Date Palm Drive. The City continues to proactively pursue parkland grant opportunities to supplement General Fund contributions for new park construction. The recently completed Cathedral City Community Amphitheater resulted from the combination of a California State Park grant and General Fund contributions. The City recently secured a different California State Parks and Recreation grant which is making the construction of the Dream Homes eight -acre community park possible.
Park construction should begin in 2024. Finally, t he City is planning to build another dog park within the Downtown area. General Funds will be used for this Downtown dog park in the event no grants are available.
Additional details may be found on pages 17 -22 and 23 -30 of the Nexus Study.
(iv) Adequacy of the current general government, police, and fire facilities to accommodate future service population growth: All three entities are operating at capacity within existing facilities. City s taff has followed up with the DVBA and explained all three entities’ facilities are unable to accommodate future City population growth.
The last update to Cathedral City’s A.B. 1600 Nexus Study occurred in 2006.
Construction costs significantly increased between 2006 and 2023. Given increasing costs over the last seventeen years, there is a significant difference between current development impact fees and the Nexus Study’s maximum allowable development
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impact fee s. The following table identifies currently charged DIF fees, Nexus Study proposed DIF fees, and the percentage increase/(decrease).
PROPOSED FEE INCREASE OR (DECREASE)
South of I10 North of I10
DEVELOPMENT TYPE:
Residential
Square
Foot or
Unit
Assumption
TOTAL
CURRENT DIF
+ PFS
TOTAL
PROPOSED
FEE
Percentage
Change
TOTAL
CURRENT
DIF + PFS
TOTAL
PROPOSED
FEE
Percentage
Change
Single Family (one unit) 2,000 $2,150.00 $12,860.00 498% $3,758.00 $12,860.00 242% Multi-family
(8,000 total livable square feet) 8 Units $16,000.00
$70,080.00 338%
$28,864.00
$70,080.00 143%
Non-Residential
Commercial/Retail 2,000 $814.40 $6,580.06 708% $2,501.70 $6,580.06 163% Office/Non-Retail 2,000 $612.40 $8,630.98 1309% $1,262.80 $8,630.98 583% Industrial/Non-Retail 2,000 $612.40 $1,049.50 71% $1,262.80 $1,049.50 -17% * Note: The current A.B. 1600 fee schedule bases fees on w hether a project is located north of Interstate 10 or south of Interstate 10. The Nexus Study establishes one set of DIF fees irrespective of whether a future project is located north or south of Interstate 10.
While there is a marked increase in develop ment impact fees, this increase demonstrates the City has been undercharging the amount s necessary to pay for future capital improvements and facilities needed to support new development . By not collecting sufficient impact fees now, in future years gener al fund monies will be required to make up the shortfall between actual costs to construct required public facilities and collected DIF fees.
The A.B. 1600 Nexus Study identifies the maximum justifiable development impact fee .
City Council has the discret ion to implement or not implement updated fees and may implement updated fees over time.
Staff prepared three options for the City Council’s consideration and discussion.
Option One is to adopt the fees as proposed in the Nexus Study beginning January 1 , 2024:
Development
Type Current Proposed Proposed
Increase
Percentage
Increase
Single-Family
Unit $2,150.00 $12,860.00 $10,710 498%
Multi-Family
Apartment
(8 Units)
$16,000.00 $70,080.00 $54,080 338%
Commercial/
Retail $814.40 $6,580.06 $5,766 708%
* The above table illustrates development impact fees assuming a 2,000 square foot single family detached home, an eight (8) unit multifamily project (8,000 total livable square feet) , and a 2,000 square foot commercial/retail space.
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In the H arris and Associates June 28, 2023, Study Session presentation, Harris illustrates the Nexus Study proposed DIF fees are in line with surrounding jurisdiction’s DIF fees. In the attached Harris and Associates June 28, 2023, PowerPoint presentation, a residential DIF fee comparison may be found on pages 23, 24, and 25.
A non -residential DIF fee comparison may be found on pages 26, 27, and 28. Harris and Associates illustrates the Nexus Study proposed increase is in line with other Coachella Valley cities.
Option Two is to adopt the fees over a two-year phase in period beginning January 1, 2024, and reaching 100% fee adoption by January 1, 2026:
Development
Type Current Proposed Proposed
Increase
Percentage
Increase
2024
Jan 1
2025
Jan 1
2026
Jan 1
Single-Family
Unit $2,150.00 $12,860.00 $10,710 498% $5,720 $9,290 $12,860 Multi-Family
Apartment
(8 Units)
$16,000.00 $70,080.00 $54,080 338% $34,027 $52,053 $70,080 Commercial/
Retail $814.40 $6,580.06 $5,766 708% $2,736 $4,658 $6,580 * The above table illustrates development impact fees assuming a 2,000 square foot single family detached home, an eight (8) unit multifamily project (8,000 total livable square feet), and a 2,000 square foot commercial/retail space.
Option Three is to adopt the fees over a three-year phase in period beginning January 1, 2024, and reaching 100% fee adoption by January 1, 2027:
Developme
nt Type Current Proposed Proposed
Increase
%
Increase
2024
Jan 1
2025
Jan 1
2026
Jan 1
2027
Jan 1
Single-
Family Unit $2,150.00 $12,860.00 $10,710 498% $4,828 $7,505 $10,183 $12,860 Multi-Family
Apartment
(8 Units)
$16,000.00 $70,080.00 $54,080 338% $29,520 $43,040 $56,560 $70,080 Commercial/
Retail $814.40 $6,580.06 $5,766 708% $2,256 $3,697 $5,139 $6,580 * The above table illustrates development impact fees assuming a 2,000 square foot single family detached home, an eight (8) unit multifamily project (8,000 total livable square feet), and a 2,000 square foot commercial/retail space.
FISCAL IMPACT:
The fiscal impact of the updated fees can be estimated once (i) all fees have been finalized and (ii) the City Council has determined which fees and over what time period will said fees be implemented. If the City Council elects to collect lower -than- recommended fees, the full amount to fund future infrastructure and facility needs may not be collected. This gap between what is collected and what is required to construct required infrastructure and/or facilities will require General Funds or grants to make up the shortfall.
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FIVE-YEAR STRATEGIC PLAN:
The implementation of updated USF, CAP, and DIF studies support s the following strategic plan goals:
GOAL B: COMMUNITY INVESTMENT Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
GOAL C: FISCAL STABILITY AND SUSTAINABILITY Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high -quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.
Action C-9 Complete and adopt the Development Impact Fee Study
ATTACHMENTS:
2023.07.23 DRAFT Cathedral City Nexus Study
2023-07-27 DIF FEE SUMMARY OF CURRENT FEES, PROPOSED FEES, AND
PERCENTAGE DIFFERENCE
2023.06.28 Cathedral City Study Session DIF Presentation Final 2023-07-07 DVBA AB 1600 DIF Study Cathedral City Comments
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AB1600 Fee Justification Nexus Study
City of Cathedral City
Preliminary Draft - July 2023
Prepared For:
Prepared By:
101 Progress #250
Irvine, CA 92618
(949) 655-3900
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
AB1600 Fee Justification Nexus Study i July 2023
City of Cathedral City
Table of Contents
Section 1 Executive Summary ............................................................................................... 1 Introduction .............................................................................................................. 1 Nexus Study ............................................................................................................. 2 Administrative Fee.................................................................................................... 5 Fee Adjustment Procedures ..................................................................................... 6 Timing of Fee Payment ............................................................................................ 6 Section 2 Legal Context and Methodology ........................................................................... 7 Nexus Requirement Summary ................................................................................. 7 AB602 ...................................................................................................................... 7 Methodology ............................................................................................................. 9 Section 3 Population and Land Use Assumptions ............................................................ 11 Land Use Types ..................................................................................................... 11 Growth Forecasts ................................................................................................... 11 Average Unit Sizes ................................................................................................. 13 Section 4 Park Facilities Fee ................................................................................................ 15 Background ............................................................................................................ 15 Parkland ................................................................................................................. 15 Service Population ................................................................................................. 16 Current Level of Service ......................................................................................... 16 Planned Level of Service........................................................................................ 17 Fee Methodology.................................................................................................... 19 Fee Summary ......................................................................................................... 20 Revenue Projections .............................................................................................. 20 Nexus Requirement Summary ............................................................................... 21 Section 5 Transportation Fee ............................................................................................... 23 Background ............................................................................................................ 23 Service Population ................................................................................................. 25 Cost Summary ....................................................................................................... 25 Fee Methodology.................................................................................................... 26 Fee Summary ......................................................................................................... 27 Reduced Traffic Fee ............................................................................................... 28 Revenue Projections .............................................................................................. 29 Nexus Requirement Summary ............................................................................... 29 Section 6 General Government Facilities Fee .................................................................... 31 Background ............................................................................................................ 31
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
AB1600 Fee Justification Nexus Study ii July 2023
City of Cathedral City
Current Level of Service ......................................................................................... 31 Planned Level of Service........................................................................................ 33 Fee Methodology.................................................................................................... 33 Fee Summary ......................................................................................................... 34 Revenue Projections .............................................................................................. 34 Nexus Requirement Summary ............................................................................... 35 Section 7 Fire Facilities Fee ................................................................................................. 38 Background ............................................................................................................ 38 Current Level of Service ......................................................................................... 38 Planned Level of Service........................................................................................ 40 Fee Methodology.................................................................................................... 40 Fee Summary ......................................................................................................... 40 Revenue Projections .............................................................................................. 41 Nexus Requirement Summary ............................................................................... 42 Section 8 Police Facilities Fee ............................................................................................. 45 Background ............................................................................................................ 45 Current Level of Service ......................................................................................... 45 Planned Level of Service........................................................................................ 47 Fee Methodology.................................................................................................... 47 Fee Summary ......................................................................................................... 48 Revenue Projections .............................................................................................. 48 Nexus Requirement Summary ............................................................................... 49 Section 9 Implementation and Administration ................................................................... 52 Implementation ....................................................................................................... 52 Fee Program Administrative Requirements ........................................................... 52 Fee Adjustment Procedures ................................................................................... 53 Timing of Fee Payment .......................................................................................... 53 Credits and Reimbursement Policies ..................................................................... 53 Administrative Fee.................................................................................................. 54 Programming Revenues with the CIP .................................................................... 54 Fee Reporting ........................................................................................................ 54 Accessory Dwelling Units ....................................................................................... 55 Specialized Development Projects ......................................................................... 55 Rebuild or Expansion Projects ............................................................................... 55
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
AB1600 Fee Justification Nexus Study iii July 2023
City of Cathedral City
Appendix A Capital Improvement Program………………………………………………………..57 Appendix B Transportation Cost Details…………………………………………………………..59
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
AB1600 Fee Justification Nexus Study iv July 2023
City of Cathedral City
Tables
Table 1-1: City of Cathedral City List of Development Impact Fees ............................................. 4 Table 1-2: Summary of Proposed Development Impact Fees ...................................................... 5 Table 3-1: Existing Service Population ....................................................................................... 12 Table 3-2: Estimated Service Population at Buildout .................................................................. 12 Table 3-3: Persons per Household & Employment Density ........................................................ 13 Table 3-4: Residential Land Use Average Unit Size ................................................................... 14 Table 4-1: Park Facility Inventory List ......................................................................................... 16 Table 4-2: Future Park Facility Cost ........................................................................................... 19 Table 4-3: Park Facility Cost per Resident ................................................................................. 20 Table 4-4: Park Facilities Fee Cost Summary ............................................................................ 20 Table 4-5: Park Facilities Fee Estimated Revenue at Buildout ................................................... 21 Table 5-1: Transportation Facilities – Planned Facilities ............................................................ 24 Table 5-2: Future Additional Trips ............................................................................................... 25 Table 5-3: Existing Trips ............................................................................................................. 27 Table 5-4: Citywide Transportation Fee Summary ..................................................................... 28 Table 5-5: Anticipated Citywide Transportation Fee Collection at Buildout ................................ 29 Table 6-1: General Government Facilities Inventory List ............................................................ 32 Table 6-2: General Government Facilities Existing Level of Service .......................................... 33 Table 6-3: General Government Facilities Fee Summary ........................................................... 34 Table 6-4: General Government Fee Estimated Revenue at Buildout ........................................ 35 Table 7-1: Fire Facilities Inventory List ....................................................................................... 39 Table 7-2: Fire Facilities Existing Level of Service ..................................................................... 40 Table 7-3: Fire Facilities Fee Summary ...................................................................................... 41 Table 7-4: Anticipated Fire Facilities Estimated Revenue at Buildout......................................... 42 Table 8-1: Police Facilities Inventory List .................................................................................... 46 Table 8-2: Police Facilities Existing Level of Service .................................................................. 47 Table 8-3: Police Facilities Fee Summary .................................................................................. 48 Table 8-4: Anticipated Police Facilities Estimated Revenue at Buildout ..................................... 49
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
AB1600 Fee Justification Nexus Study 1 July 2023
City of Cathedral City
Section 1 Executive Summary
Introduction
The City of Cathedral City (City) is a desert resor t city located in Riverside County. The City is tucked between the City of Palm Springs and the Cit y of Indio, in the northwest part of the Coachella Valley between the San Bernardino Mountains to the north, the San Jacinto Mountains to the south, and the San Gorgonio Pass to the west . It is the second most populated city in the Coachella Valley.
The City was incorporated in 1981 after beginning a s a housing development in 1925. The City began a downtown revitalization program in the late 1990s, which was completed by 2005. The program included a new city hall, movie theater com plex, and new and remodeled stores and restaurant space. The City features lush country clubs, diverse shopping districts, and a variety of recurring community events for residents and visitors.
At the time of the 2020 U.S. Census, the city popul ation was 51,493. As of January 1, 2022, the California Department of Finance (DOF) estimates th at the city population is 51,840. As the resident population and non-resident employment in the City increase, there exists a correlating rise in the demand for public infrastructure and se rvices to support the increased demand on the City. California’s Assembly Bill 1600 (AB1600) adop ted in 1987 and codified as California Government Code Section 66000 et. seq., allows the City to impose Development Impact Fees on new development within the City.
Development Impact Fees (DIFs) are a one-time charge on new development that is collected and used by the City to cover the cost of capital facilities, vehicles, and equipment that are required to serve new growth. In July 2021 the City adopted the updated July 1, 2019 Comprehensive General Plan (General Plan or 2040 General Plan) that forms the basis of the City’s current development impact fee program. As stated in the General Plan, most of the City south of US Interstate-10 is already developed and the remaining vacant lands in this area are generally located east of Date Palm Drive and north of Dinah Shore Drive. In recen t years, the City’s limits have expanded to include lands north of US I-10 and have extended ea st to Bob Hope Drive, where large-scale master planned communities have already been approv ed for development. For purposes of this Nexus Study, the land north of US I-10 is defined a s the North Area of the City. As noted in the General Plan, the City’s Sphere-of-Influence extends eastward on the north side of US I-10 taking in the community of Thousand Palms, continuing eastward beyond Cook Street and including the Classic Club and the surrounding master planned community.
As highlighted in the General Plan, development in the City over the past decades has been focused along the East Palm Canyon Drive (Highway 111) corr idor, and the northern areas of the City on the valley floor. The City is situated across a var iety of geographic and geologic conditions,
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
AB1600 Fee Justification Nexus Study 2 July 2023
City of Cathedral City
including a mid-valley alluvial plain and limited m ountain foothills, as well as the sandy desert floor. The Santa Rosa Mountains bound the City on t he south and Edom Hill and the Indio Hills bound the City on the north.
The Nexus Study is based on the City limits and the full General Plan Buildout of the City. As stated in the land use chapter of the General Plan, the City's future is tied to the type and amount of new development it can accommodate at General Pl an Buildout. Projecting future Buildout capacity requires consideration of several variable s and is based on assumed densities (dwelling units per acre) and intensity factors that include allowed lot coverage and floor-to-area ratios (FAR), parking requirements, etc. While some of tod ay's developed lands may change in use in the coming years, most of the assumed City buildout is on remaining vacant lands planned for residential and employment-generating uses.
The General Plan includes and encompasses the North City Specific Plan planning area, which provides residential densities of from 25 to 45 dwe lling units per acre within a master-planned, mixed-use development context. These mixed-use desi gnations have also been applied to lands south of US I-10 and provide the City an important tool to further mixed-use, high density residential development elsewhere in the community. For additional information addressing these and other related issues associated with community housing stock, please see the City’s Housing Element.
The goal of the City is to develop a fee program that achieves the objectives laid out in the General Plan and associated master plans, balances fee levels with desired economic growth, and complies with the legal requirements of the Mitigation Fee Act (AB1600/Government Code Section 66000 et seq.) and Assembly Bill 602 (AB602).
Nexus Study
Purpose
As development occurs in the City, new backbone infrastructure and capital facilities are required to mitigate the increased demand created by new residents and workers. Revenues from DIFs fund the construction of new backbone infrastructure and capital facilities as well as the related administrative costs through the City’s fee program . The fee program contains separate fee categories for each type of infrastructure and capi tal facilities. Incorporated in this Nexus Study (Nexus Study, Study or Report) are the following fees:
• Park Facilities
• Transportation
• General Government Facilities
• Fire Facilities
• Police Facilities
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
AB1600 Fee Justification Nexus Study 3 July 2023
City of Cathedral City
This Report is designed to satisfy the AB1600 Nexus requirements, AB602 requirements, and provide the necessary technical analysis to support the adoption of the updated fees. The fees will be effective 60 days after the City’s final action establishing and authorizing the collection of the fees.
Table 1-1 lists the fees the City currently collects and acc ounts for per the City’s Development Impact Fee Annual Report (“AB1600” Report) for Fisc al Year 2021-2022. The table below also shows which fees are included in the Nexus Study, w hich fees have been combined, and which fees are excluded.
As shown on Table 1-1, this Nexus Study excludes the Master Underground Plan (MUP) fee and the Art in Public Places Fee. The MUP fee was adopted in 1990 and given the significant changes to AB1600 requirements since 1990 and the new AB602 requirements, it is Harris’ recommendation that the MUP fee should be reevaluat ed with an undergrounding study or converted to an in-lieu fee. An in-lieu model is common for undergrounding fees and would require a municipal code update. The Art in Public Places F ee is currently an in-lieu fee for commercial and industrial projects equal to one percent of nin ety percent of the total project valuation. Harris conducted an analysis of different methodologies fo r updating the Art in Public Places Fee, including adding an additional impact fee for art o n residential development. After reviewing the options with City staff, it was determined that the Art in Public Places Fee would remain an in- lieu fee for non-residential development, which is consistent with numerous other jurisdictions for this type of fee.
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
AB1600 Fee Justification Nexus Study 4 July 2023
City of Cathedral City
Table 1-1: City of Cathedral City List of Development Impact Fees Current Fees Notes from Nexus Study?
Master Underground Plan No change – Undergrounding study recommended or change to In-Lieu Fee
Fire and Police Facilities/Equipment Included in Separate Fire Facilities Fee and Police Facilities Fee
Traffic Signalization Included in Transportation Fee
City Yard Vehicle Storage Included in General Government Facilities Fee
Police Community Center Included in Police Facilities Fee Public Safety Training Site Included in Police Facilities Fee Public Safety Facilities Included in Separate Fire Facilities Fee and Police Facilities Fee
Road and Traffic Facilities Included in Transportation Fee Interchange and Bridges Included in Transportation Fee
Bikeway Facilities Included in Transportation Fee
Trail Facilities Included in Transportation Fee
Park and Recreation Facilities Included in Park Facilities Fee Transit Development No Change – not an AB1600 Fee
Art in Public Places No change – not an AB1600 Fee
Results
Table 1-2 shows a summary of the proposed fees. Pursuant to AB602, residential development fees are now assessed on a per square foot basis and non-residential development fees are assessed on a per 1,000 square foot basis. Park Facilities F ees are not assessed on non-residential development. The Park Facilities Fee is discussed in more detail in Chapter 4.
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Table 1-2: Summary of Proposed Development Impact Fees
Administrative Fee
The City oversees the implementation and administration of the DIF Program, consistent with the requirements of the Mitigation Fee Act. A five perc ent (5%) Administrative Fee is added to fund the costs of the City’s management and ongoing fee program administration, collection, and reporting. This includes costs associated with City staff and consultant time, studies, and administration to support the program. Furthermore, AB602, adds additional administration and reporting cities are responsible for meeting. Industry standard ranges from three to six percent (3- 6%) of the fee for the administrative component of a development fee program. The administrative functions include, but are not limited to, the following:
• Annual fee adjustments
• Annual fee reporting
• Additional fee reporting every five years
• Posting of nexus studies and fee schedules on the City’s website • Nexus study updates every eight years (an AB602 requirement) • Staff and consultant time related to fee preparation, collection, tracking, and administration
• Staff and consultant time needed to track credits and reimbursements for improvements constructed in the fee program
In addition to the aforementioned administrative activities, the City is responsible for both (i) using fee revenues to plan for and construct required cap ital facilities and (ii) pursue other funding sources, as required, to bridge financial gaps betw een what is collected and the actual cost to Land Use 1 Parks Transportation
General
Government
Facilities Fire Police
Residential
Single Family $3.37 $0.64 $1.25 $0.69 $0.48
Multi-Family $4.74 $0.61 $1.76 $0.97 $0.68
Non-Residential
Commercial N/A $2,147.52 $590.43 $325.64 $226.44
Office N/A $1,804.49 $1,297.63 $715.68 $497.69
Industrial N/A $273.65 $129.76 $71.57 $49.77
Notes:
1 An administrative fee of 5% is included in the fees show n 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 breakdow n of the administration fee. (Fee per Square Foot)
(Fee per 1,000 Square Feet)
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construct needed facilities. A flat fee will impair the City’s ability to abide by AB602’s rigorous requirements.
Consistent with the Mitigation Fee Act, the Adminis trative Fee will be collected to fund the cost of the program administrative activities, such as a dministration, collection, and reporting. The costs to administer will vary each year. In additio n to annual program reporting activities and additional fee reporting requirements every five ye ars, AB602 requires the Nexus Study must be updated at least every eight years.
Fee Adjustment Procedures
The DIFs may be adjusted periodically to reflect re vised facility requirements, receipt of funding from alternative sources (i.e., state or federal gr ants), revised facilities or costs, changes in demographics, changes in the average unit square fo otage, or changes in the land use plan. In addition, the fees may be adjusted annually using t he Construction Cost Index (CCI) for the 20- City Average as reported by Engineering News Record (ENR) for a twelve-month period or a similar published index if the CCI Index is no longer available. City staff will calculate the annual adjustment utilizing the CCI Index. The adjusted fe es will be summarized in a resolution to be approved by City Council following the required not icing as outlined by section 66016 of the California Government Code.
Timing of Fee Payment
Fees will be collected at the time the building per mit for the project is issued. All residential projects will pay a fee based on the livable square footage of the residential unit(s). For high- density residential projects (defined in the Genera l Plan as high-density residential development with multi-family dwellings, including apartments and condominiums), the fees will be due at the time of the building permit for each building. For high-density residential projects with communal space, the non-residential communal portion (i.e., clubhouse, maintenance facility, gym, etc.) will not be assessed impact fees as the impact is assume d to be captured in the residential fees. Areas that are accessible by the public (i.e., leasing office) will be charged impact fees according to use.
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Section 2 Legal Context and Methodology
Nexus Requirement Summary
AB1600 was enacted by the State of California in 19 87 creating the Mitigation Fee Act - Section 66000 et seq. of the Government Code. The Mitigatio n Fee Act requires that all public agencies satisfy the following requirements when establishing, increasing, or imposing a fee as a condition of approval of a development project:
1. Identify the purpose of the fee.
2. Identify the use to which the fee is to be put. If the use is financing public facilities, the facilities shall be identified.
3. Determine how there is a reasonable relationship be tween the fees use and the type of development project on which the fee is imposed.
4. Determine how there is a reasonable relationship be tween the need for the public facility and the type of development project on which the fee is imposed.
5. Determine how there is a reasonable relationship be tween the amount of the fee and the cost of the public facility or portion of the p ublic facility attributable to the development on which the fee is imposed.
The purpose of this report is to demonstrate that a ll fee components comply with the Mitigation Fee Act. The assumptions, methodologies, facility standards, costs, and cost allocation factors that were used to establish the nexus between the fees a nd the development on which the fees will be charged are summarized in subsequent sections of this Report.
AB602
AB602, which was enacted by the State of California in 2021, amended Sections 65940.1 and 66019 of, and added Section 66016.5 to the Governme nt Code. AB602 requires that if a local agency conducts and adopts an impact fee nexus study after January 1, 2022, the local agency shall follow all of the following standards and practices:
1. Before the adoption of an associated development fee, an impact fee nexus study shall be adopted.
2. When applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.
3. A nexus study shall include information that suppor ts the local agency’s actions, as required by subdivision (a) of Section 66001 of the Government Code.
4. If a nexus study supports the increase of an existi ng fee, the local agency shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.
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5. A nexus study adopted after July 1, 2022, shall cal culate a fee imposed on a housing development project proportionately to the square f ootage of proposed units of the development. A local agency that imposes a fee prop ortionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development. A nexus study is not required to c omply with the requirements to calculate a fee imposed on a housing development project proportionally to the square footage of the proposed units if the local agency makes the following findings:
• An explanation as to why square footage is not appropriate metric to calculate fees imposed on housing development project.
• An explanation that an alternative basis of calcula ting the fee bears a reasonable relationship between the fee charged and the burden posed by the development. • That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.
6. Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.
7. All studies shall be adopted at a public hearing wi th at least 30 days’ notice, and the local agency shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing.
8. Studies shall be updated at least every eight years , from the period beginning on January 1, 2022.
9. The local agency may use the impact fee nexus study template developed by the Department of Housing and Community Development pur suant to Section 50466.5 of the Health and Safety Code.
The purpose of this Report is to demonstrate that a ll fee components comply with the Mitigation Fee Act and AB602. An analysis of level of service for each applicable fee component is summarized in subsequent sections of this report.
Capital Improvement Plan
AB602 states that large jurisdictions shall adopt a capital improvement plan (CIP) as part of the nexus study. This report includes the facilities to be adopted as the City’s CIP for the DIF program in Appendix A.
Explanation of Level of Service and Fee Increase
AB602 requires that when applicable, the nexus stud y identifies the existing level of service for each public facility, identifies the proposed new l evel of service, and includes an explanation of why the new level of service is appropriate. This report relies on existing level of service standards developed in consultation with City staff and with reference to the existing capital facilities and
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improvements in the City for all the fee programs documented herein apart from the Park Facilities Fee and Transportation Fee. Utilizing the existing level of service as the fee basis is appropriate for new development to pay their fair share. The transportation fee is a new combined fee program, the calculation presented herein for this fee program provides justification for an entirely new fee based on planned facilities required to serve exist ing and new development. New development will pay their allocated fair share of cost, rather than an increase over an existing amount. For the Park Facilities Fee, the existing level of service is identified and acknowledged that it falls below the City Standard. The City Standard is utilized fo r the Park Facilities Fee as it is an appropriate City Standard set by the General Plan and as the Ci ty has significant growth in the North area of the City, it is appropriate for new development to meet this City Standard. New development is expected to pay the fee that results in meeting the City Standard and will not be used to fund existing deficiencies. Furthermore, Government Code 66001 states, “A fee shall not include the costs attributable to existing deficiencies in public facilities, but may include the costs attributable to the increased demand for public facilities reasonably related to the development project in order to (1) refurbish existing facilities to maintain the existing level of service or (2) achieve an adopted level of service that is consistent with the genera l plan”. The Park Facilities Fee achieves an adopted level of service that is consistent with th e City’s adopted General Plan. This approach, therefore, is consistent with the Mitigation Fee Ac t. AB602 requires that when applicable, the nexus study identifies the existing level of service for each public facility, identifies the proposed new level of service, and includes an explanation o f why the new level of service is appropriate.
This Nexus Study meets that requirement of the expl anation of why the new level of service is appropriate based on the General Plan standard.
Methodology
Imposed fees require various findings to ensure tha t a reasonable relationship exists between the fee amount and the cost of the facility or portion of the facility attributable to the new development.
Several methodologies are available to determine fe e amounts. Choosing the appropriate methodology depends on the type of facility for which the fee is calculated and the availability of documentation to support the fee calculation. Follo wing is a discussion of the methodologies available to calculate the separate fee components in this report.
Facility Standards Method
The facility standards method determines the facili ties and associated costs required to accommodate growth based on adopted City standards. Depending on the fee analysis, the City may or may not currently have sufficient facilities to meet the adopted standard. If the City’s existing facilities are below the standards, then a deficiency exists. In this case, the portion of th e cost of planned facilities associated with correcti ng the deficiency must be satisfied with funding sources other than Development Impact Fees (DIFs). AB1600 fees can only fund facilities needed to accommodate new development at the adopted standard.
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Master Plan Method
The master plan method is based on a master facilities plan in situations where the needed facilities serve both existing and new development. This appro ach allocates existing and planned facilities across existing and new development to determine ne w development’s fair share of the needed facility. This approach is used when it is not possible to differentiate the benefits of new facilities between existing and new development.
Planned Facilities Method
The planned facilities method calculates the standard based solely on the ratio of planned facilities to the increase in demand associated with new devel opment. This method is appropriate when planned facilities are mostly for the benefit of ne w development, such as a wastewater trunk line extension to a previously undeveloped area. This me thod may also be used when there is excess capacity in existing facilities that can accommodate new development.
Existing Inventory Method
The existing inventory method uses a facility stand ard based on the ratio of existing facilities to the existing service population on a cost per unit or cost per square foot basis. Under this approach, new development funds the expansion of facilities at the same standard currently serving existing development. By definition, the existing inventory method ensures that no facility deficiencies are spread to future development. This method is often used when a long-range plan for new facilities is not available.
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Section 3 Population and Land Use Assumptions
Land Use Types
To ensure a reasonable relationship between each fee and the type of development paying the fee, different land use types must be distinguished. The land use categories used in this analysis are defined below.
• Single Family Residential (SFR) : Detached single-family dwelling units. Includes very low density, low density, and age-restricted units. • Multi-Family Residential (MFR): Attached residential projects. • Accessory Dwelling Unit (ADU) : A second unit, attached or detached from a SFR. • Commercial : All commercial, retail, educational, hotel/motel development, and mixed-use development.
• Office : All general, professional, and medical office development. • Industrial : All manufacturing and warehouse development.
Some developments may include more than one land us e type, such as an industrial warehouse with living quarters (a live-work designation) or a planned unit development with both single and multi-family uses. In these cases, the fees will be calculated separately for each land use type.
Growth Forecasts
Growth projections are used as indicators of demand and projected revenue to fund the infrastructure identified in Appendix A. The City’s existing population and Buildout population projections are critical assumptions used throughout the fee sections that follow in this report. The following resources were used as part of this analysis:
• Estimates of total development through Buildout were based on the City’s land use plan from the City’s Comprehensive General Plan, adopted July 28, 2021. • Population projections were based on the land use p rojections and the estimated persons per household taken from the US Census American Community Survey. • Existing population estimates are from the 2021 California Department of Finance. • Existing non-residential worker populations are bas ed on non-residential data for the City of Cathedral City derived from the City’s Comprehensive General Plan, adopted July 28, 2021, and employees per square feet assumption from the USGBC LEED BD+C: New Construction | v4 – Default Occupancy Counts.. • Worker projections are based on estimated buildout square footage and the employees per square feet assumption from the USGBC LEED BD+C: New Construction | v4 – Default Occupancy Counts.
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Table 3-1 identifies the existing service population. Non-residential buildings are typically occupied less than dwelling units, so it is reasona ble to assume that average per-worker demand for services is less than average per-resident dema nd. The 0.37-weighting factor for workers is based upon a 45-hour work week (40 hours of work plus 1 hour lunch break) relative to a resident’s non-working time of 123 hours (168 hours per week less 45 work hours).
Table 3-1: Existing Service Population
Table 3-2 shows the estimated service population at Buildout.
Table 3-2: Estimated Service Population at Buildout
Category
Total
Persons
Weighting
Factor 3
Service
Population
Residents 1 51,840 1.00 51,840
Workers 2 11,063 0.37 4,093
Total 62,903 55,933
Notes:
1 2
3 Source:
California Department of Finance E-5 Population and Housing Estimates, City of Cathedral City Comprehensive General Plan (adopted July 28, 2021).
Based on State of California Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, dated January 1st 2021.
Employment data for the City of Cathedral City derived from the adopted General Plan (July 2021).
Workers are w eighted at 0.37 based on a 45 hour w ork w eek relative to a resident's time of 123 hours (168 hours per w eek less 45 w ork hours).
Category
Future
Persons
(Buildout)
Total
Persons at
Buildout
Weighting
Factor 3
Future
Buildout
Service
Population
Service
Population
at Buildout
Residents
1 85,130 136,970 1.00 85,130 136,970
Workers 2 73,007 84,070 0.37 27,013 31,106
Total 158,137 221,040 112,143 168,076
Notes:
1 2
3 Based on State of California Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, dated January 1st 2021 combined w ith the buildout development derived from the City of Cathedral City Comprehensive General Plan adopted July 28, 2021.
Employment data for the City of Cathedral City derived from the United States Census Bureau On The Map Application combined w ith the buildout development derived from the City of Cathedral City Comprehensive General Plan adopted July 28, 2021.
Workers are w eighted at 0.37 based on a 45 hour w ork w eek relative to a resident's time of 123 hours (168 hours per w eek less 45 w ork hours).
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Occupant Density
Occupant densities ensure a reasonable relationship between the increase in service population and the amount of the fee. Developers pay the fee based on the square footage of additional housing units or building square feet of non-residential de velopment, so the fee schedule must convert service population estimates to these measurements of project size. This conversion is done using the average occupant density factors by land use type shown in Table 3-3. The residential density factors were derived from the US Census American Community Survey while the non-residential densities were derived from the U.S. Green Building Council Default Occupancy Counts.
Table 3-3: Persons per Household & Employment Density
Average Unit Sizes
To meet AB602 requirement five (5), this Report calculated the average unit size for single family residential and multifamily units based on the estimated average size of planned new development within each land use category in the City. The aver age unit size is based on the livable square footage of the residential unit for all residential land uses. This Report derived the unit sizes from the Market Watch Quarterly New Home Report for Coac hella Valley, dated December 2022 and the Desert Housing Report dated October 2022.
Basing the average unit size on livable square footage for all residential units is not only consistent with industry standard for fee calculations, it provides a strong nexus between the impact of the unit and the fee amount. A good example of this industry standard are school fees in California. In California school fees are based on assessable spac e, which means a quantity equal to the area (expressed in square feet) within the perimeter of a residential structure, not including the carport, walkway, garage, overhang, patio, enclosed patio, detached accessory structure or similar structure.
As stated previously, to accurately capture the imp act of a residential project on capital facilities for high-density multi-family residential projects with communal spaces, the communal spaces Density Assumptions
Residential 1
Single Family 2.85 Residents per dwelling unit
Multi-Family 2.51 Residents per dwelling unit
Non-Residential
2 Commercial 1.82 Employees per 1,000 square feet
Office 4.00 Employees per 1,000 square feet
Industrial 0.40 Employees per 1,000 square feet
Notes:
1 Extrapolated from American Community Survey 2020 5-Year Estimates: Table B25032 & B25033. 2 USGBC LEED BD+C: New Construction | v4 - Default Occupancy Counts.
Source:
U.S. Census Bureau, American Community Survey and the U.S. Green Building Council.
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(i.e., clubhouse, maintenance facility, gym, etc.) will not be assessed impact fees as the impact is assumed to be captured in the residential fees. Areas that contain employees and are accessible by the public (i.e., leasing office) will be charged i mpact fees according to use. The non-residential area accessible by the public (i.e., leasing office) will be based on the useable size of that area. The usable square footage is the actual area of a space as measured within the demising exterior walls of that space. Including areas that contain employees that are accessible by the public captures the additional impact these new facilities will have on the backbone facilities in the City.
Table 3-4 summarizes the estimated average size of planned n ew development within each residential land use category utilized for this study.
Table 3-4: Residential Land Use Average Unit Size
The City will monitor the average size of housing units in the City based on new developments on an annual basis and if the size of units on average are significantly different than anticipated, the fees will be updated as part of the annual update for the fee adjustment to reflect this change in order to ensure the fee program collects the anticipated level of funding.
Land Use Unit Size (SF)
Single Family 2,000
Multi-Family 1,250
Notes:
1 Unit sizes derived from the Desert Housing Report dated 10/22 and Market Watch Quarterly New Home Report for Coachella Valley, dated December 2022.
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Section 4 Park Facilities Fee
Background
This section presents an analysis of the need for a dditional parks to accommodate new development in the City and the fees that are neces sary in order to ensure that new development provides adequate funding to meet those needs. This Nexus Study updates the methodology of the existing Parks Fee and recommends updated fees.
Residential development in the City will pay the Pa rk Facilities Fee at building permit issuance.
The park cost was estimated based on the existing City adopted standard of three (3) acres of green space per 1,000 residents. The Park Facilities Fee is for park facility development cost only and does not include parkland acquisition costs. Parkla nd acquisition under the Quimby Act requires developers to either dedicate land to satisfy their parkland requirement or pay an in-lieu fee. The in-lieu fee is dependent upon appraised land cost a nd thus, the amount should be agreed upon between the City and the developer when the land dedication is triggered. The City has an existing Quimby in-lieu fee (also known as a Park In-Lieu Fee). As noted in the General Plan, Park In-Lieu Fees stem from the Quimby Act. Quimby provides for the dedication of land for parks, or in certain instances (i.e. a subdivision is small), a fee in-lieu of dedicating land is provided. It is important to note that for the Park In-Lieu Fee, infill projects are exempt, and the fee applies primarily to parkland and land improvements in new neighborhoods . For the Park Facilities Fee, which is a DIF, the fee applies only to new development and is only assessed for new capital costs related to the new development with a defined beneficiary relationship.
Parkland
AB1191, also known as the Quimby Act, was establish ed by the California State Legislature in 1965 and codified as California Government Code Sec tion 66477. The Quimby Act outlines the requirements for imposing fees for park purposes wi th a minimum of three (3) acres and a maximum of five (5) acres of green space per 1,000 residents. The Quimby Act allows the legislative body of a city or county, by ordinance, to require the dedication of land or impose a requirement of the payment of fees in-lieu thereof, or a combination of both, for park or recreational purposes as a condition to the approva l of a tentative tract map or parcel map.
Currently the City imposes a Residential Quimby Par ks Fee based on three (3) acres per 1,000 residents or the payment of an in-lieu fee. The for mula is based on a dwelling unit factor, the parkland dedication requirement (currently three (3) acres per 1,000 residents) and the fair market value per acre (varies per development).
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Service Population
The Park Facilities Fee is not applied to non-resid ential development because workers typically do not use park facilities.
Current Level of Service
Per the City’s Comprehensive General Plan, the City has a total of 73.23 acres of developed parkland. Table 4-1 lists the existing parkland available to current residents. Based on a population of approximately 51,840, there are 1.41 acres of ex isting parkland per 1,000 persons/residents as also shown in Table 4-1. Thus, the current parkland is less than the stand ard of 3 acres per 1,000 people on a citywide level.
Table 4-1: Park Facility Inventory List
Park Facility Acreage 1
Community Parks
Dennis Keat Soccer Park 19.25
Subtotal Community Parks 19.25
Neighborhood Park
Dream Homes Park 7.85
Century Park 7.02
Ocotillo Park 7.04
Panorama Park 12.57
Patriot Park 7.00
Second Street Park 4.41
Subtotal Neighborhood Parks 45.89
Mini Park
Cathedral City Dog Park 1.29
Festival Lawn 2.04
Memorial Park 0.20
Town Square 2.06
Subtotal Mini Parks 5.59
Performance and Event Venue
Community Amphitheater 2.50
Subtotal Performance and Event Venues 2.50
Total Park Acreage 73.23
Existing Service Population 51,840
Total Park Acreage per 1,000 1.41
Notes:
1 Park acreages derived from the City of Cathedral City 2040 General Plan, Adopted 2021.
Source:
City of Cathedral City 2040 General Plan.
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Undeveloped Parkland
As identified in the 2040 General Plan, the City has continued to acquire parkland to further expand park and recreational services. The table below identifies acquired parkland that will be developed by the City as public parks in the future. The City is actively exploring partnerships with such entities as the Desert Health District and others. Such collaboration can extend the value and usefulness of City parks lands now and in the future.
As shown on the table above, the City currently own s approximately 128.3 acres of undeveloped parkland and is committed to developing the parklan d in the future. The City recently developed the Community Amphitheater at the corner of Cathedr al Canyon Drive and Avenida Lalo Guerrero, which is used as a music and theater venu e, and for other cultural, entertainment, and recreational uses. The City also recently completed the Panorama Dog Park with plans to build another dog park within the Downtown area. The City has identified required funding sources. The City has shown on ongoing commitment of finding funding for parks through grants, general fund revenue, and other funding sources. Funding for parks is outlined as an action item in the City’s 5 Year Strategic Plan and discussed in the City’s rec ently adopted 2040 General Plan. The City currently owns enough parkland that, when developed , the City will meet or exceed the General Plan standard of (3) acres per 1,000 residents.
Planned Level of Service
The City has established a goal for parks at three (3) acres of parkland per 1,000 residents, per the Parks Master Plan and City General Plan. This analy sis is based on the existing City standard of three (3) acres of parkland per 1,000 residents, where new development will contribute and develop three (3) acres of parkland per 1,000 residents. As new development cannot fund existing deficiencies, new development will not be required to bring the City’s existing level of service to this standard Citywide, but new development will be required to meet the standard of three (3) acres of parkland per 1,000 residents with this fee . Applying the General Plan standard to new development is consistent with the Mitigation Fee A ct, as outlined in Government Code Section 66001, “A fee shall not include the costs attributa ble to existing deficiencies in public facilities, but may include the costs attributable to the incre ased demand for public facilities reasonably
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related to the development project in order to (1) refurbish existing facilities to maintain the existing level of service or (2) achieve an adopted level of service that is consistent with the general plan”.
The City General Plan and the Municipal Code (Secti on 9.106.040) have an adopted level of service of three (3) acres of parkland per 1,000 re sidents. As stated previously, the existing level of service is identified and acknowledged that it falls below the City Standard. In compliance with Government Code Section 66001, the City Standard is utilized for the Park Facilities Fee as it is a City Standard set by the adopted General Plan and as the City has significant growth in the North area of the City, it is appropriate for new develop ment to meet this City Standard for the new residents to utilize parks. New development is expe cted to pay the fee that results in meeting the City Standard and will not be used to fund existing deficiencies. The City will use other funding sources, such as grants and General Fund revenue, to bring up the existing level of service to three (3) acres of parkland per 1,000 residents.
As outlined in the City’s 2040 General Plan, in 200 3, the Parks and Recreation Department was removed from City financial support due to budget c onstraints. The City continues to maintain a five-member citizen-based Parks and Community Events Commission to assess the community’s recreational services and facilities, and to advise the City Council regarding funding, recreational programming, parks facilities and usage, and related issues. Currently, the City does not meet the adopted standard of (3) three acres of parkland per 1,000 residents. The General Plan states that the City will strive to meet the adopted park acrea ge standards, identify appropriate locations for future parks and related open space, evaluate fundi ng options, and continue to develop parks and recreational facilities that best meet the needs of the community. It will continue to develop a complete network of bikeways and pedestrian pathway s. The network should be linked to important activity nodes within the community to de crease the dependence on vehicles and promote physical activity. The General Plan has a goal of a City-wide system of parks, open space and other recreational amenities and programs that at a minimum satisfy Quimby Act standards and another goal of a wide offering of facilities and programs supporting and encouraging physical activity, social interaction, and enhanced social c ohesion in the community parks, recreation and open space areas. Furthermore, as outlined in the City’s April 2023 5 Year Strategic Plan, it identifies actions for park funding.
As described in more detail in Chapter 9 of this Ne xus Study, the City may provide fee credits or reimbursements to developers who construct eligible facilities. Given that parkland must be dedicated at (3) acres per 1,000 residents, consistent with Quimby and the City’s municipal code, it would be inconsistent to then have a different s tandard for park facilities and adopting a lower standard for park amenitization could cause issues with fee credits and reimbursements. As demonstrated above, having a Park Facilities Fee ba sed on the General Plan standard meets the
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requirements of the Mitigation Fee Act, but also ma intains consistency with all adopted park policies and the City’s municipal code.
Fee Methodology
The Park Facilities Fee is based on the Facility St andards Method. This method determines the facilities and associated costs required to accommo date growth based on adopted City standards.
Using this approach for parks, new development funds the expansion of facilities and construction of new facilities at the adopted General Plan stand ard for the City. Table 4-2 calculates the total cost of future park improvements based on the Gener al Plan standard of three (3) acres per 1,000 residents, anticipated service population growth, a nd the cost per acre of park development. Fee revenues may be used to construct park improvements and facilities on land dedicated by developers in accordance with the City’s Quimby Ordinance or though land purchased through the payment of the in-lieu Quimby Fee.
Table 4-2: Future Park Facility Cost
Table 4-3 identifies the park cost per capita by taking the future cost of park improvements and dividing by the future service population.
Description Total Unit
Future Park Improvements
City of Cathedral City Park Acre per 1,000 Standard 1 3.00 acres City of Cathedral City Future Service Population 85, 130 residents Total Park Acreage Required to Serve New Development 255.39 acres Cost per Acre for Park Improvements 2 750,000 $ cost/acre Total Future Park Improvement Cost 191,542,500 $ Total Cost Notes:
1 Park Acreage per 1,000 derived from the City of Cathedral City 2040 Plan, adopted in 2021. 2 Cost per Acre of Park Improvements provided by the City of Cathedral City on August 18, 2022.
Source:
City of Cathedral City 2040 General Plan and Cathedral City Parks & Recreation Department.
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Table 4-3: Park Facility Cost per Resident
Fee Summary
The Park Facilities Fee per unit is calculated by m ultiplying the cost per capita by the average number of residents per unit type (density). The fe e per unit must then be converted to a fee per square foot by taking the total fee per unit and dividing by the estimated average unit size for each land use to arrive at the fee per square foot. The total fee includes a five percent (5%) administrative charge to fund fee program administrative costs, in cluding but not limited to preparing annual reports, preparing fee updates, and other administr ative tasks related to the fee program administration. These calculations are shown in Table 4-4.
Table 4-4: Park Facilities Fee Cost Summary
Revenue Projections
Table 4-5 summarizes the anticipated Park Facilities Fee rev enue. The revenue will be available to expand the City’s Park facilities to meet the ne eds of new residents. Based on the population estimates in this Nexus Study and using the City Ge neral Plan standard of 3 acres per 1,000 Description Value
Future Facilities
Future Park Improvements 191,542,500 $
Subtotal Park Improvements 1 191,542,500 $
Future Service Population 85,130
Total Existing Level of Service per Capita 2,250 $
Notes:
1 Cost per Acre of Park Improvements provided by the City of Cathedral City on August 18, 2022.
Source:
City of Cathedral City 2040 General Plan.
Land Use
Cost Per
Capita Density
Subtotal Fee
(per unit)
Administration
Fee
(per unit)
Total Fee
(per unit)
Average Unit
Size (SF) Fee/SF
Residential
Single Family 2,250 $ 2.85 6,412.50 $ 320.63 $ 6,733.13 $ 2,000 3.37 $ Multi Family 2,250 $ 2.51 5,647.50 $ 282.38 $ 5,929.88 $ 1,250 4.74 $ Notes:
1 Source:
City of Cathedral City 2040 General Plan.
An administrative fee of 5% is included in the fees show n 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.
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residents, it is anticipated that approximately 255 additional acres of parks facilities are needed to meet the needs of the City at Buildout at a cost of approximately $201 million.
Table 4-5: Park Facilities Fee Estimated Revenue at Buildout
Nexus Requirement Summary
The Park Facilities Fee component of the DIF progra m meets the Mitigation Fee Act Requirements, as described in this section.
Requirement 1: Identify the purpose of the fee.
The purpose of the Park Facilities Fee is to fund the park needs generated by new development in the City. Each new resident creates a demand for ad ditional neighborhood parks, mini parks, and community parks. The City’s adopted standard is to provide 3 acres of parkland for each 1,000 residents. In order to accommodate these needs, new park facilities will be built and/or existing park facilities will be expanded . Table 4-3 calculates the parks cost per capita based on the C ity standard for parks and the estimated construction cost.
Requirement 2: Identify the use of the fee.
The Park Facilities Fee will be used to fund new pa rk development in order to meet the City’s General Plan and Park Master Plan standards discussed in this chapter. The anticipated fee revenue at Buildout is shown on Table 4-5.
Requirement 3: Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.
The fee will be used to fund new neighborhood, mini and community parks that are necessary to serve the increased residents in the City. New resi dential development generates additional residents which increases the demand for park facilities. The Park Facilities Fee is calculated using the City’s General Plan standard of three (3) acres of park per 1,000 residents. Residential development is responsible for paying its fair shar e to meet the City’s standard. Non-residential Land Use
Proposed
Fee (SF) 1
Anticipated
Growth
(units)
Anticipated
Growth
(SF)
Anticipated
Fee Collection
at Buildout 2
Residential per SF
Single Family $3.37 8,266 16,531,000 $55,709,470
Multi Family $4.74 24,531 30,663,915 $145,346,956
Total $201,056,426
1 Includes the administrative portion of the fee.
2 Total fee revenue may differ slightly from cost attributable to fee program due to rounding.
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uses do not pay the fee since they do not generate additional residents and workers have minimal impact on the City’s park system.
Table 4-3 calculates the cost per capita and then allocates the cost to each development type based on the estimated persons per household. Table 4-4 then calculates the cost per square foot for the residential units based on the estimated average unit size . By basing the fee on the size of the unit and the estimated number of new residents that is a nticipated to be generated by the addition of that square footage, the fee is directly correlated to the increased need for new parks.
Requirement 4: Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.
Each new residential development is anticipated to generate new residents. The addition of new residents creates the need for new neighborhood, mi ni and community parks to meet the City’s General Plan park standard of three (3) acres per 1 ,000 residents. The fee is directly correlated to the number of new residents expected to be generate d by each type of development. Non- residential development does not pay for parks as non-residential developments do not generate a significant demand for park facilities. Residential development pays its fair share based on the estimated persons the new unit is expected to generate.
Requirement 5: Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.
As new residential units are constructed, new park facilities are necessary to meet the City’s General Plan standard of 3 acres of park per 1,000 residents. The Park Facilities Fee is calculated by taking the cost per acre of park development tim es three (3) acres of parks per 1,000 future residents to determine the cost per capita, as show n in Table 4-3. The cost per capita is then allocated to each residential land use based on the persons per household each unit is expected to generate, assessed an administrative fee of 5% and divided by the average unit size in square feet to determine the fee per square foot as shown in Table 4-4. Since the need for park land is based on the number of new residents, calculating the fee based on the number of persons each unit is expected to generate and converting to a fee per square feet, ensures that each new residential unit is paying only its fair share of the required facilities.
By determining the fee based on the estimated new r esidents that would be generated by new development, each new residential unit is paying on ly its fair share of the facilities required to meet the City’s General Plan Standard. Non-residential land uses are not assessed a Park Facilities Fee as non-residential development will not generate an increase in park facility demand.
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Section 5 Transportation Fee
Background
This section presents an analysis of the Citywide T ransportation Fee. The proposed Citywide Transportation Fee covers the costs to mitigate the impacts of new development on the City’s traffic facilities. The fees listed below are charged on new development within the City and cover transportation projects that were in part or fully attributable to new development when the projects were created:
• Traffic Signalization
• Road and Traffic Facilities
• Interchange and Bridges
• Bikeway Facilities
• Trail Facilities
The Citywide Transportation Fee proposes to merge t he five fees above into one single fee based on the updated analysis presented in this chapter. The new Citywide Transportation Fee will establish a separate capital facilities fund to avo id any commingling of transportation fees with other revenues and funds. The Mitigation Fee Act re quires that fees are expended solely for the purpose for which the fees were collected. To compl y with the Mitigation Fee Act, the existing funds for the Traffic Signalization, Road and Traffic Facilities, Interchange and Bridges, Bikeway Facilities, and Trail Facilities will be transferred to the new Citywide Transportation Fee fund.
As shown on Table 5-1, the future street improvements and traffic signal facilities were developed by the City of Cathedral City Engineering Departmen t based on facilities necessary to serve new development. Additional information is provided in Appendix B . The future bikeways and multi- modal facilities were derived from the City of Cathedral City Comprehensive General Plan.
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Table 5-1: Transportation Facilities – Planned Facilities
Description Value
Street Improvements / Traffic Signals 1
Street Improvements 75,223,090.90 $
Traffic Signals 15,000,000.00 $
Subtotal Street Improvements / Traffic Signals 90,22 3,090.90 $ Mobility Improvements 2,3
Class I 17,610,912.00 $
Class 2 1,318,680.00 $
Off Road Shared NEV/Bike 313,632.00 $
Subtotal Mobility Facilities 19,243,224.00 $
Trips
Existing Trips 265,832
Future Additional Trips 582,607
Subtotal Trips 848,439
Trip Allocation
Existing Trips 31%
Future Additional Trips 69%
Subtotal Trips 100%
Transportation Improvements Cost Allocation
Existing Development Responsibility 34,297,853.37 $
Future Development Responsibility 75,168,461.53 $
Subtotal Improvement Costs 109,466,314.90 $
Total Transportation Fee per Future Trip 129.02 $
Notes:
1 Future street improvements and traffic signal facilities developed by the City of Cathedral City Engineering Department.
2 Future bikew ays & multi-modal facilities derived from the City of Cathedral City Draft Comprehensive General Plan dated July 1, 2019 and 2040 General Plan, adopted 2021. 3 Cost estimates per mile provided by the City of Cathedral City on August 18, 2022.
Source:
City of Cathedral City Comprehensive General Plan and Cathedral City Active Transportation Plan and City of Cathedral City.
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Service Population
Demand for services and the associated facilities for transportation are based on the additional trips that will be generated by new development through B uildout conditions. The Citywide Transportation Fee utilizes the land use trip generation assumptions presented in Table 5-2 for the various residential and non-residential land uses b ased on the ITE Trip Generation Manual, 11.1 Edition.
Table 5-2: Future Additional Trips
Cost Summary
The Citywide Transportation Fee will fund the expan sion and construction of new transportation facilities necessary to serve new growth. Table 5.1 calculates the fair share between existing and new development for new or expanded future faciliti es based on trips. These transportation facilities will be necessary to meet the demands of the growth of the City at Buildout. The transportation facilities listed in Table 5-1 have total DIF eligible project costs estimated to be approximately $109.5 million, with future developme nt’s responsibility approximately $75.2 million. The City will review the potential funding sources for transportation projects to determine the appropriate funding mechanisms as transportatio n projects move forward as well as identify funding sources through the CIP process and identify action plans in updates to the City's Strategic Plan. The $34.3 million will not be funded by new development as existing development will have an impact on these facilities and therefore the City will fund this amount through funding sources such as the General Fund, grants, or other funding sources. It is important for new development to fund their fair share of their impact on transportation facilities. As new development will impact the existing transportation infrastructure, this is a conservative approach that does not burden new development with any existing deficiencies.
Land Use Future Units / Workers ITE Trip Rate 1
Trips
Generated
Residential units
Single Family 8,266 9.43 77,943.67
Multi-Family 2 24,531 5.64 138,355.58
Subtotal Residential 216,299.25
Non-Residential workers
Commercial 20,908 8.71 182,111.28
Office 45,873 3.33 152,755.99
Industrial 6,226 5.05 31,440.38
Subtotal Non-Residential 366,307.66
Total Future Trips 582,606.91
Notes:
1 Institute of Transportation Engineers Common Daily Trip Generation Rates sourced from the ITE Trip Generation Manual, 11th Edition. 2 Multi-Family trip generation based on the average trips for attached 2-4 and attached 4+ units. 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.
Source:
Institute of Transportation Engineer's 11th Edition.
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Fee Methodology
The Transportation Fee uses the Planned Facilities Method to calculate the fee. The Planned Facilities Method calculates the fee based on the p lanned facilities associated with new development. This method is appropriate when planned facilities are mostly for the benefit of new development, such as a road extension to a previously undeveloped area.
The Transportation Fee is calculated based on the c ost per trip generated by new development.
The total cost of the facilities attributed to new development identified in Table 5-1 is spread over the anticipated number of trips that will be genera ted by future development (as shown in Table 5-2) to calculate the cost per trip.
To calculate the total number of new trips attribut able to new development through Buildout, the growth projections, detailed in Chapter 3 , are multiplied by the corresponding trip generation rates identified in Table 5-2. These trip generation rates for the land use types within this fee program are based on the Institute of Transportation Engineers (ITE) Trip Generation Manual, 11.1 Edition.
The multi-family assumption is an average of the mu lti-family attached 2-4 rate and multifamily attached 4+ rate. The non-residential land use ITE rates are assessed per employee, so the rates are multiplied by future employees at Buildout in the City.
Residential trips were calculated by multiplying th e anticipated growth in residential units by the corresponding single family and multi-family trip g eneration rates. Non-residential trips were calculated by multiplying the anticipated growth in employees by the corresponding trip generation rates for each of the land uses. The ITE Trip Generation Manual, 11th Edition notes all Retail and Services land uses (commercial) are entitled to a "pass-by" trip reduction between 40%- 60%. This study assumes the average with a 50% trip reduction for commercial. Pass-by trips are a subset of trips traveling on a road that stops by a near-by commercial development. They are not new trips. Table 5-2 shows the breakdown of the total trips attributed to new development through Buildout condition.
Table 5-3 calculates the total number of existing trips attri butable to existing development. The existing land uses and employees, detailed within C hapter 3, are multiplied by the corresponding trip generation rates identified in Table 5-3. Table 5-3 displays the ITE trip generation rates for the land use types within this fee program. As stated previously, the multi-family assumption is an average of the multi-family attached 2-4 rate and multifamily attached 4+ rate. The non-residential land use ITE rates are assessed per employee, there fore these rates are multiplied by existing employees in the City. The existing trips are calcu lated to determine future developments responsibility as the total transportation cost is allocated between existing and future trips.
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Table 5-3: Existing Trips
The cost per trip is calculated by taking the total cost of the DIF eligible transportation facilities , calculating the existing trips and future additiona l trips, diving the total cost between existing development and future development’s responsibility based on trips, and then dividing the future development responsibility cost by the trips genera ted by new development. This calculation is shown in Table 5-1.
Fee Summary
The Citywide Transportation Fee for new development is calculated by multiplying the cost per trip identified in Table 5-1 by trip generation rate for each land use. The tota l fee includes a five percent (5%) administrative charge to fund fee prog ram administrative costs, including but not limited to preparing annual reports, preparing fee updates, and other administrative tasks related to the fee program administration. The residential fee per unit is converted to a fee per square foot by dividing the fee per unit by the unit size estim ated in Table 3-4: Residential Land Use Average Unit Size . Table 5-4 shows the proposed new Citywide Transportation Fee s for new development.
Land Use Existing Units / Workers ITE Trip Rate 1
Trips
Generated
Residential units
Single Family 20,659 9.43 194,814.37
Multi-Family 68 5.64 384.65
Subtotal Residential 195,199.02
Non-Residential workers
Commercial 5,998 8.71 52,239.14
Office 4,179 3.33 13,914.45
Industrial 887 5.05 4,479.17
Subtotal Non-Residential 70,632.77
Total Existing Trips 265,831.78
Notes:
1 Institute of Transportation Engineers Common Daily Trip Generation Rates sourced from the ITE Trip Generation Manual, 11th Edition. 2 Multi-Family trip generation based on the average trips for attached 2-4 and attached 4+ units. 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.
Source:
Institute of Transportation Engineer's 11th Edition.
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Table 5-4: Citywide Transportation Fee Summary
Reduced Traffic Fee
Residential developments near transit stations gene rate fewer trips than traditional land use configurations that rely on vehicles as the primary mode of transportation. According to various transportation studies, measurable trip reductions result for projects that are near transit stations and where there are a diversity of land uses that promote connectivity and walkability. To account for the reduced trip rates generated by projects meeting the above characteristics, an additional trip adjustment factor is applied to new residential land uses meeting the following criteria:
1. The housing development is located within one-half mile of a transit station and there is direct access between the project and the transit station along a barrier-free walkable pathway not exceeding one-half mile in length.
2. Convenience retail uses, including a store that sel ls food, are located within one-half mile of the housing development.
3. The housing development provides either the minimum number of parking spaces required by the local ordinance, or for residential units, no more than one onsite parking space for zero to two bedroom units, and two onsite parking spaces for three or more bedroom units, whichever is less.
For purposes of this reduction, the definition of t ransit station shall be defined by California Government Code Section 65460.1, “Transit station” means a rail or light-rail station, ferry terminal, bus hub, or bus transfer station. Also, a “housing development” shall be defined by California Government Code Section 66005.1, which i s a development project with common ownership and financing consisting of residential use or mixed use where not less than 50 percent of the floorspace is for residential use.
Commercial trips often coincide with other trips (i .e., Person A stops by the store on their way home from work, Person B stops by a restaurant afte r grocery shopping, etc.) This “pass-by” trip Land Use Cost per Trip Trips
Employees
per 1,000 SF
Improvement
Fee Administration Fee Total Fee
Average
Unit Size
(SF) Fee/SF
Residential
Single Family 129.02 $ 9.43 - 1,216.67 $ 60.83 $ 1,277.50 $ 2,000 0.64 $ Multi Family 129.02 $ 5.64 - 727.68 $ 36.38 $ 764.06 $ 1,250 0.61 $ Non-Residential
Commercial 129.02 $ 8.71 1.82 2,045.26 $ 102.26 $ 2,147.52 $ Office 129.02 $ 3.33 4.00 1,718.56 $ 85.93 $ 1,804.49 $ Industrial 129.02 $ 5.05 0.40 260.62 $ 13.03 $ 273.65 $ Notes:
1 An administrative fee of 5% is included in the fees show n 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.
Source:
Institute of Transportation Engineer's 11th Edition.
(Fee per 1,000 Square Feet)
(Fee per Unit)
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reduction amount is factored into the Commercial trip generation estimates (Table 5-2) as well as the fee for commercial land use in Table 5-4.
Revenue Projections
Table 5-5 summarizes the anticipated Citywide Transportation Fee revenue collected at Buildout.
The revenue will be used to fund the transportation facilities show on Table 5-1.
Table 5-5: Anticipated Citywide Transportation Fee Collection at Buildout
Nexus Requirement Summary
The proposed Citywide Transportation Fee meets the Mitigation Fee Act Requirements, as described in this section.
Requirement 1: Identify the purpose of the fee.
The purpose of the Citywide Transportation Fee is t o fund planned transportation facilities included in Table 5-1 to serve future development. In order to accommoda te this need, new facilities must be built and/or existing facilities expanded.
Requirement 2: Identify the use of the fee.
The fee will be used to fund the planned transporta tion facilities identified in Table 5-1 and detailed in Appendix B , that are necessary to serve increased transportat ion demand. The improvements were identified through the current Ci ty General Plan Update, City identified projects, and additional City discussions, as the f acilities that are required to mitigate the impact of new development in the City.
Land Use
Proposed
Fee 1
Anticipated
Growth
(units)
Anticipated
Growth
Anticipated
Fee Collection
at Buildout 2
Residential per SF SF
Single Family $0.64 8,266 16,531,000 $10,559,176
Multi Family $0.61 24,531 30,663,915 $18,743,257
Non-Residential
per 1000 SF 1000 SF
Commercial $2,147.52 n/a 11,488 $24,670,874
Office $1,804.49 n/a 11,468 $20,694,194
Industrial $273.65 n/a 15,565 $4,259,238
Total $78,926,738
1 Includes the administrative portion of the fee.
2 Total fee revenue may differ slightly from cost attributable to fee program due to rounding.
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Requirement 3: Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.
The Citywide Transportation Fees will be used to fu nd the new transportation facilities and improvements that are necessary to serve the increa se in transportation demand due to new development. The cost of the transportation improvements is spread to each land use based on the number of trips generated by each land use. This co rrelation to trips ensures that each new development pays their fair share of the transportation costs.
The cost per trip calculations is shown in Table 5-1. The fee calculation is shown in Table 5-4.
Requirement 4: Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.
Each new residential and non-residential development within the City will generate additional trips that incrementally adds to the need for new traffic infrastructure and facilities to serve the increased residents and businesses within the City and ensure that traffic facilities can accommodate the increased demand. These facilities are identified i n the current City General Plan Update and through City discussions. Each new residential and non-residential development pays an impact fee based on the additional trips that is expected to be generated by the new development. To accommodate these additional trips, new transportat ion improvements will be needed city-wide.
Utilizing trips generated by each development ensur es that each type of development pays their fair share of the required new transportation facilities. This calculation is shown in Table 5-4.
Requirement 5: Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.
The transportation facilities that are necessary fo r the new development are summarized in the planned improvements presented in Table 5-1. Each land use pays their fair share of costs base d on the number of trips generated by that land use as shown in Table 5-2. Existing development is netted out from the analysis based on existing trips (calculated on Table 5-3), to ensure that future land uses only pays their fair share of the traffic improvements, as calculated in Table 5-1. The cost per trip is then spread to each land use based on the ITE Trip Generation Rates. This calculation is shown in Table 5-4 . Utilizing trips ensures that each development pay s their fair share of the cost.
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Section 6 General Government Facilities Fee
Background
This section presents an analysis of the need for g eneral government facilities to accommodate new development in the City and the fees that are n ecessary in order to ensure that new development provides adequate funding to meet this increased need. The City does not currently have a General Government Facilities Fee and this N exus Study presents the methodology to establish the fee. The City does have a City Yard Vehicle Storage Fee that will be combined with this new General Government Facilities Fee.
The General Government Facilities Fee will fund str uctures, vehicles, and equipment related to government facilities, such as City Hall, Library, and Public Works facilities that are needed to serve the future service population of the City.
The Civic Center is located at 68700 Avenida Lalo G uererro and contains approximately 65,000 square feet. It houses the Police Department (inclu ded in a separate chapter) and city staff and administrative offices, including the Mayor’s offic e and City Council chambers. Per discussions with City Staff, there is room to expand at the cur rent location. Per the General Plan, the City’s corporate yard is located at 68385 Kieley Road, near Cathedral Canyon Drive. The facility includes two masonry buildings with a total of approximately 8,500 square feet. One building serves as a vehicle maintenance garage/workshop, and the other includes staff offices for the Public Works Department and warehousing space. The remainder of the site consists of an asphalt parking lot, which accommodates staff and City-owned vehicles. C ity staff has indicated that additional parking space is needed and that the corporate yard may be expanded in the future. Furthermore, as the City grows, especially North of I-10, additi onal general government facilities may be needed, such as library facilities.
Current Level of Service
The current level of service is based on the value of the General Government Facilities as shown below in Table 6-1. The value for the police station and jail is included in the Police Facilities Fee and not the General Government Facilities Fee. The table also shows the City’s current general government inventory of vehicles and equipment.
To determine the current level of service, the value of the existing general government facilities is divided by the existing service population to deriv e the existing level of service cost per capita/worker. The cost per capita for non-residential land uses is weighted using the factors shown in Table 3-1 to calculate the cost per worker. This calculation is shown in Table 6-2. .
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Table 6-1: General Government Facilities Inventory List
Description Address Quantity UOM Value 1,2
General Government Facilities
Maintenance & Operations 68385 Kieley Road 5,184 SF 1,0 88,179 $ Maintenance & Operations - Land 687-073-046 1.12 AC 487 ,872 $ Library 33520 Date Palm Drive 20,245 SF 8,177,754 $
Library - Land 3 673-030-016 2.60 AC 1,132,560 $
Civic Center / City Hall 4 68-700 Avenida Lalo Guerrero 36,430 SF 14,900,238 $ Civic Center / City Hall - Land 4 687-471-006 2.03 AC 884,970 $ City Hall Parking Structure 68-594 Avenida Lalo Guer rero 230,808 SF 15,942,266 $ City Hall Parking Structure - Land 687-471-008 3.18 AC 1,385,208 $ City Hall - Bell Tower 68-700 Avenida Lalo Guerrero 264 SF 921,894 $ City Hall - Bell Tower - Land 687-471-006 0.00 AC - $
Public Works Building 68-526 Avenida Lalo Guerrero 7,000 SF 333,025 $ Public Works Building - Land 687-171-007 0.00 AC - $
Subtotal General Government Facilities 45,253,966 $
Vehicles & Equipment 5
Mobile - Contractor's Equipment 289,583 $
2018 Chevy Silverado 3500 HD 75,000 $
2018 Chevy Silverado 3500 HD 75,000 $
2014 Ford F-150 Truck 55,000 $
2014 Ford F-150 Truck 55,000 $
2014 Ford F-150 Truck 55,000 $
2016 Chevy Silverado 2500 HD 55,000 $
2016 Chevy Silverado 2500 HD 55,000 $
2016 GMC Sierra 55,000 $
2016 GMC Sierra 55,000 $
2018 Ford F-150 55,000 $
2019 Chevy Tahoe 65,000 $
2019 Chevy Tahoe 65,000 $
2018 Chevy Malibu 55,000 $
2018 Chevy Malibu 55,000 $
2018 Chevy Malibu 55,000 $
2018 Chevy Malibu 55,000 $
2018 Chevy Malibu 55,000 $
2020 Ford Ranger-STVR 55,000 $
2020 Ford Ranger-STVR 55,000 $
2017 DS63 2 Flex 1 Insert Feeder 8,481 $
Mail Machine 5,914 $
HP Page Wide X L 4100 Printer & Scanner 20,646 $
Volanti Multi-Touch Display 11,199 $
Volanti Multi-Touch Display 11,199 $
Subtotal Vehicles & Equipment 1,452,022 $
Total Government Facilities 46,705,988 $
Notes:
1 Building values derived from the Cathedral City Statement of Values dated March 29, 2022 provided by Cathedral City Staff on May 11, 2022. Rounded to nearest dollar. 2 Land values derived from the Cathedral City Statement of Values dated March 29, 2022 provided by Cathedral City Staff on May 11, 2022. Rounded to nearest dollar. 3 4
5 Source:
City of Cathedral City Statement of Values and Listing of Vehicles.
Vehicle & equipment values derived from the Cathedral City Listing of Vehicles provided on March 23, 2023 and Listing of Non-Mobile Equipment List provided on March 29, 2023 by Cathedral City Staff. Excludes vehicles past their useful life.
APN 673-030-016 is listed in the County Assessor's Database as 7.890 Acres. How ever, the Library shares the parcel w ith Patriot Park and only utilizes 2.60 acres of the Parcel.
Cost allocation betw een General Government Facilities and Police based on the square footage of each use. General Government Facilities utilizes 36,430 SF of the 68,140 SF Building
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Table 6-2: General Government Facilities Existing Level of Service
Planned Level of Service
The City’s general facilities serve both residents and businesses. Demand for services and associated facilities, is based on the City’s servi ce population including residents and workers.
The City plans to maintain the current level of service per resident and worker, as shown on Table 6-2, with appropriate participation from new developme nt. Per AB 602, when applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.
This Nexus Study identifies the existing level of service per resident and worker and based on the Nexus Study analysis and discussions with City staff, it has been deemed appropriate to maintain the existing level of service. As described below, this ensures that no facility deficiencies are spread to future development.
Fee Methodology
The General Government Facilities Fee is based on t he Existing Inventory Method. This method uses a facility standard based on the ratio of existing facilities to the existing service population on a cost per unit or cost per square foot basis. Unde r this approach, new development funds the expansion of facilities at the same standard currently serving existing development. By definition, the existing inventory method ensures that no facil ity deficiencies are spread to future development.
Description Value
Existing Facilities 1
General Government Facilities 45,253,966 $
Vehicles & Equipment 1,452,022 $
Subtotal General Government Facilities 46,705,988 $
Existing Service Population 2 55,933
Total Existing Level of Service per Resident 835.03 $
Total Existing Level of Service per Worker 308.96 $
Notes:
1 2
Source:
City of Cathedral City Statement of Values and Listing of Vehicles.
Existing Facilities values derived from the Cathedral City "Statement of Values" and "Listing of Vehicles" provided by Cathedral City Staff on May 11, 2022 and March 23, 2023.
Existing Service population comprises of the 51,840 Residents and 9,934 Workers (w orkers w eighted at
0.37 based on a 45 hour w ork w eek).
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Fee Summary
The General Government Facilities Fee is distribute d across the various land uses by multiplying the cost per capita/worker by the average number of residents/workers per unit type (density) as identified in Table 3-3 (e.g. for single family residential the density assu mption is 2.85 residents per unit). For each residential land use, the fee p er unit is then converted to a fee per square foot by dividing the cost per unit by the estimated aver age unit size for each land use. For non- residential land use categories, density is shown o n a workers per 1,000 square feet basis and the fee is then calculated on the same basis. The total fee includes a five percent (5%) administrative charge to fund fee program administrative costs, in cluding but not limited to preparing annual reports, preparing fee updates, and other administr ative tasks related to the fee program administration. These calculations are shown in Table 6-3.
Table 6-3: General Government Facilities Fee Summary
Revenue Projections
Table 6-4 summarizes the anticipated General Government Facil ities Fee revenue that will be utilized to fund the construction and/or expansion of general government facilities that will serve new development. The General Government Facilities Fee will be used to fund the cost of expansions or new construction at the current City Hall for General Government Facilities, related to the growth of the City. It is anticipated that t he current City Hall may be able to accommodate a minor expansion, additional City Hall facilities may be built, or a new City Hall building will eventually be built to serve the demand of future g rowth. Additional library and public works facilities in the North area of the City may be fun ded by General Government Facilities Fee revenues as the City’s service population increases.
Land Use
Cost Per
Resident /
Worker Density
Subtotal
Fee
Administration
Fee Total Fee
Average
Unit Size
(SF) Fee/SF
Residential (per Unit) (per Unit) (per Unit)
Single Family 835.03 $ 2.85 2,379.84 $ 118.99 $ 2,498.83 $ 2,000 1.25 $ Multi Family 835.03 $ 2.51 2,095.93 $ 104.80 $ 2,200.73 $ 1,250 1.76 $ Non-Residential 2 (per 1,000 SF) (per 1,000 SF) (per 1,000 SF) Commercial 308.96 $ 1.82 562.31 $ 28.12 $ 590.43 $ Office 308.96 $ 4.00 1,235.84 $ 61.79 $ 1,297.63 $ Industrial 308.96 $ 0.40 123.58 $ 6.18 $ 129.76 $ Notes:
1 2
Non-residential density based upon USGBC LEED BD+C: New Construction | v4 - Default Occupancy Counts.
An administrative fee of 5% is included in the fees show n 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.
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Table 6-4: General Government Fee Estimated Revenue at Buildout
Nexus Requirement Summary
The General Government Facilities Fee component of this DIF Study meets the Mitigation Fee Act Requirements, as described in this section.
Requirement 1: Identify the purpose of the fee.
The purpose of the General Government Facilities Fe e is to fund the General Government Facilities needs generated by new development in th e City, such as new or expanded facilities at City Hall or new facilities in the North area of th e City. Each new resident and worker create a demand for additional general government facilities . In order to accommodate these needs, new general government facilities will be built and/or existing facilities will be expanded.
Requirement 2: Identify the use of the fee.
The General Government Facilities Fee will be used to fund new general government facilities in order to maintain the City’s existing level of serv ice. The anticipated fee revenue at Buildout is shown on Table 6-4, which will be used to fund new or expanded facilities at City Hall and new general government facilities, especially in the N orth area of the City, such as library facilities and additional corporation yard facilities. The cap ital improvement projects are identified in Appendix A.
Requirement 3: Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.
The fee will be used to fund new general government facilities that are necessary to serve the increased residents and workers in the City. New de velopment generates additional residents and workers which increases the demand for general gove rnment facilities. The existing inventory Land Use
Proposed
Fee 1
Anticipated
Growth
(units)
Anticipated
Growth
Anticipated
Fee Collection
at Buildout 2
Residential per SF SF
Single Family $1.25 8,266 16,531,000 $20,663,750
Multi Family $1.76 24,531 30,663,915 $53,968,490
Non-Residential
per 1000 SF 1000 SF
Commercial $590.43 n/a 11,488 $6,782,905
Office $1,297.63 n/a 11,468 $14,881,439
Industrial $129.76 n/a 15,565 $2,019,655
Total $98,316,239
1 Includes the administrative portion of the fee.
2 Total fee revenue may differ slightly from cost attributable to fee program due to rounding.
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method uses a facility standard based on the ratio of existing facilities to the existing service population on a cost per unit or cost per square foot basis. Under this approach, new development funds the construction of new facilities or the expansion of facilities at the same standard currently serving existing development. By definition, the existing inventory method ensures that no facility deficiencies are spread to future development.
Table 6-1 identifies the existing general government facilit ies and Table 6-2 calculates the existing cost per capita/worker. Workers are weighted less than residents to reflect lower per capita service demand. Non-residential buildings are typically occupied less than dwelling units, so it is reasonable to assume that average per-worker demand for services is less than average per-resident demand. The 0.37-weighting factor for workers is ba sed upon a 45-hour work week (40 hours of work plus 1 hour lunch break) relative to a residen t’s non-working time of 123 hours (168 hours per week less 45 work hours).
The cost per capita/worker is then allocated to eac h development type based on the estimated persons per household and employees per 1,000 squar e feet. Table 6-3 calculates the cost per square foot for the residential units based on the estimated average unit size and cost per 1,000 square feet for non-residential . Calculating the fees based on the new residents or employees projected ensures a reasonable relationship between the fees use and the type of development planned to be built.
Requirement 4: Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.
Each new development is anticipated to generate new residents and workers. The addition of new residents and workers creates the need for new or e xpanded general government facilities to maintain the City’s existing level of service. The General Government Facilities Fee is based on the number of applicable workers and/or residents each new development is expected to generate, thus ensuring that the need for the facilities is directly related to a particular development’s impact.
New workers generate a smaller demand than a resident, thus one worker is considered, on average, as equivalent to 0.37 that of a resident. The fee for each unit type is calculated in Table 6-3.
Requirement 5: Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.
As new development is constructed, new or expanded general government facilities are needed to meet the City’s existing level of service for government facilities. The fee is based on the Existing Inventory Method.
The existing level of service is calculated by taking the total general government facilities cost and dividing it by the existing service population to d erive the existing level of service cost per
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capita/worker as shown in Table 6-2. The fee for each land use is then calculated by m ultiplying the cost per capita/worker by the number of new res ident equivalents that each land use will generate and converting to a fee per square foot for residential and a fee per 1,000 square foot for non-residential as shown in Table 6-3 . Since the need for the facilities directly correl ates to the addition of new residents and workers, determining the fee based on the projected equivalent residents for each land use ensures that new develo pment pays for their fair share of the required future facilities.
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Section 7 Fire Facilities Fee
Background
This section presents an analysis of the City’s Fire Facilities Fee. The Fire Facilities Fee provides funding for fire facilities, equipment, and vehicles as a result of increased demand for fire services arising from new development. Currently the City has a Public Safety Fee that includes police and fire services. This Nexus Study proposes a separate fee for police and fire. The Fire Facilities Fee will include the fire portion of the City’s current Fire and Police Facilities/Equipment Fee and Public Safety Facilities Fee.
Currently the Cathedral City Fire Department staffs three firehouses with five to six firefighters and ambulance operators, as well as an administrative office with the fire chief, deputy fire chief, three battalion chiefs, a fire inspector and two administrative support staff.
Current Level of Service
Table 7-1 shows the City’s current fire inventory of fire st ations, vehicles and equipment that serve the City. Table 7-2 calculates the existing level of service per resident/worker.
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Table 7-1: Fire Facilities Inventory List
The total fire facilities value is divided by the existing service population to establish the existing level of service per resident/worker as shown in Table 7-2.
Description Address Quantity UOM Value 1
Fire Facilities
Fire Station #1 - 411 68-950 Buddy Rogers Avenue 9,20 0 SF 9,893,428.00 $ Fire Station #1 - 411 - Land 2 687-180-009 & 687-180-011 2.78 AC 1,210,968.00 $ Fire Station #2 - 412 32100 Desert Vista Rd. 11,018 SF 4,148,662.00 $ Fire Station #2 - 412 - Land 2 680-282-034 1.33 AC 579,348.00 $ Fire Station #3 - 413 27610 Landau Blvd. 14,000 SF 3,06 4,777.00 $ Fire Station #3 - 413 - Land 2 675-500-006 1.46 AC 635,976.00 $ Subtotal Fire Facilities 19,533,159.00 $
Vehicles & Equipment 3
2013 Ford Leader Ambulance 220,000.00 $
2016 E-450 Marque Ambulance 220,000.00 $
2016 Marque Ambulance 220,000.00 $
2002 La France Telesquirt Fire Truck 750,000.00 $
2009 Pierce Fire Truck 750,000.00 $
2013 Pierce Type 1 Pumper 750,000.00 $
Pierce Quantum Pumper Fire Truck 800,000.00 $
2014 Pierce Quantum 75' Fire Engine 800,000.00 $
2020 Chevy Suburban 115,000.00 $
2014 Ford Taurus 55,000.00 $
2020 Ford F-250 65,000.00 $
2022 Chevy Tahoe 65,000.00 $
2021 Medix F-450 Ambulance 220,000.00 $
2021 Medix F-450 Ambulance 220,000.00 $
Ambulance Cot 13,483.30 $
X Series Zoll Monitors (7) 213,223.65 $
Zoll Auto Pulse Resuscitation System (3) 29,937.67 $
Extrication Unit (Jaws of Life Tool) 39,435.49 $
Antennas & Control Station 12,204.00 $
Extractor Units 45,676.31 $
Stryker Power-Pro XT Ambulance Cot 20,033.38 $
Fire Station 412 Alerting System 119,839.04 $
Fire Station 413 Alerting System 123,148.77 $
Breathing Apparatus Scott Air Packs (45) 358,737.86 $
Subtotal Vehicles & Equipment 6,225,719.47 $
Total Fire Facilities 25,758,878.47 $
Notes:
1 Building values derived from the Cathedral City Statement of Values dated March 29, 2022 provided by Cathedral City Staff on May 11, 2022. 2 Land values derived from the Cathedral City Statement of Values dated March 29, 2022 provided by Cathedral City Staff on May 11, 2022. 3 Source:
City of Cathedral City Statement of Values and Listing of Vehicles.
Vehicle & equipment values derived from the Cathedral City Listing of Vehicles provided on March 23, 2023 and Listing of Non-Mobile Equipment List provided on March 29, 2023 by Cathedral City Staff. Excludes vehicles past their useful life.
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Table 7-2: Fire Facilities Existing Level of Service
Planned Level of Service
The City plans to maintain the current level of ser vice, as shown in Table 7-2, with appropriate participation from new development. Per AB 602, when applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate. This Nexus Study identifies the existing level of service per resident and work er and based on the Nexus Study analysis and discussions with City staff, it has been deemed appropriate to maintain the existing level of service.
As described below, this ensures that no facility deficiencies are spread to future development.
Fee Methodology
The Fire Facilities Fee is calculated using the Existing Inventory Methodology. This method uses a facility standard based on the ratio of existing facilities to the existing service population on a cost per unit or cost per square foot basis. Under this approach, new development funds the expansion of facilities at the same standard currently serving existing development. By definition, the existing inventory method ensures that no facil ity deficiencies are spread to future development. This method is often used when a long-range plan for new facilities is not available.
Fee Summary
The Fire Facility Fee per unit is calculated by multiplying the cost per capita by the average number of resident equivalents per unit type (density). Th e cost per capita for non-residential land uses is weighted using the factors shown in Table 3-1. For residential uses, the fee per unit must then be Description Value
Existing Facilities
Fire Facilities 1 19,533,159.00 $
Vehicles & Equipment 2 6,225,719.47 $
Subtotal Fire Facilities 25,758,878.47 $
Existing Service Population 3 55,933
Total Existing Level of Service per Resident 460.53 $
Total Existing Level of Service per Worker 170.40 $
Notes:
1 Building values derived from the Cathedral City Statement of Values dated March 29, 2022 provided by Cathedral City Staff on May 11, 2022.
2 Vehicle & equipment values derived from the Cathedral City Listing of Vehicles provided by Cathedral City Staff on March 23, 2023.
3 Source:
City of Cathedral City Statement of Values and Listing of Vehicles.
Existing Service population comprises of the 51,840 Residents and 9,934 Workers (w orkers w eighted at
0.37 based on a 45 hour w ork w eek).
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converted to a fee per square foot for each unit ty pe by dividing by the average size of each unit.
The total fee includes a five percent (5%) administrative charge to fund fee program administrative costs, including but not limited to preparing annua l reports, preparing fee updates, and other administrative tasks related to the fee program adm inistration. Table 7-3 summarizes these calculations.
Table 7-3: Fire Facilities Fee Summary
Revenue Projections
Table 7-4 summarizes the anticipated Fire Facilities Fees. Th e revenue will be applied to future fire stations and fire equipment to meet the needs of new development. According to discussions with the fire chief, the current fire stations are at full capacity and could not accommodate any additional expansion to meet additional demand. At full Buildout, an additional two fire stations will be needed. The two additional fire stations will also require fire apparatuses, ambulances, and other equipment. The City already plans to build an additional fire station at Date Palm Drive and Varner Road when required by population and busines s growth. To accommodate these stations and additional engine companies, the chief stated t hat a training facility would be needed at Buildout. Currently, the City has an agreement to utilize the CalFire Training Facility in Thousand Palms to meet firefighters training requirements. With the construction of an additional fire station and the hiring of additional firefighters, the continued use of the CalFire Training Facility will no longer be viable due to the competition for trainin g time with other agencies. As a result, as the City grows, the City plans to construct a dedicated fire training facility that ensures that the required training for all the City’s firefighters can be maintained.
Land Use
Cost Per
Resident /
Worker Density
Subtotal
Fee
Administration
Fee
Total
Fee
Average Unit
Size (SF) Fee/SF
Residential (per Unit) (per Unit) (per Unit)
Single Family 460.53 $ 2.85 1,312.51 $ 65.63 $ 1,378.14 $ 2,000 0.69 $ Multi Family 460.53 $ 2.51 1,155.93 $ 57.80 $ 1,213.73 $ 1,250 0.97 $ Non-Residential 2 (per 1,000 SF) (per 1,000 SF) (per 1,000 SF) Commercial 170.40 $ 1.82 310.13 $ 15.51 $ 325.64 $ Office 170.40 $ 4.00 681.60 $ 34.08 $ 715.68 $ Industrial 170.40 $ 0.40 68.16 $ 3.41 $ 71.57 $ Notes:
1 2
Source:
City of Cathedral City Statement of Values and Listing of Vehicles.
An administrative fee of 5% is included in the fees show n 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.
Workers are w eighted at 0.37 based on a 45 hour w ork w eek relative to a resident's time of 123 hours (168 hours per w eek less 45 w ork hours).
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Table 7-4: Anticipated Fire Facilities Estimated Revenue at Buildout
Nexus Requirement Summary
The Fire Facilities Fee component of this DIF Study meets the Mitigation Fee Act Requirements, as described in this section.
Requirement 1: Identify the purpose of the fee.
The purpose of the Fire Facilities Fee is to fund new development’s fair-share portion of new fire facilities, such as new fire stations and training facilities, vehicles and fire equipment required for the additional fire personnel that are necessary to mitigate the impacts of new development. Each new resident and worker creates a demand for additi onal fire facilities. In order to accommodate these needs, new fire facilities will be built and/ or existing facilities will be expanded per capita/worker.
Requirement 2: Identify the use of the fee.
The Fire Facilities Fee will be used to fund new de velopment’s fair-share portion of the fire facilities, new fire stations, training facilities, vehicles and fire equipment required to serve new development in order to maintain the City’s existing level of service. The anticipated fee revenue at Buildout is shown on Table 7-4.
The capital improvement projects are identified in Appendix A .
Requirement 3: Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.
The fee will be used to fund new fire facilities th at are necessary to serve the increased residents and workers in the City. New development generates additional residents and workers which increases the demand for fire facilities. The Exist ing Inventory Method uses a facility standard Land Use
Proposed
Fee 1
Anticipated
Growth
(units)
Anticipated
Growth
Anticipated
Fee Collection
at Buildout 2
Residential per SF SF
Single Family $0.69 8,266 16,531,000 $11,391,016
Multi Family $0.97 24,531 30,663,915 $29,774,171
Non-Residential
per 1000 SF 1000 SF
Commercial $325.64 n/a 11,488 $3,740,977
Office $715.68 n/a 11,468 $8,207,538
Industrial $71.57 n/a 15,565 $1,113,954
Total $54,227,657
1 Includes the administrative portion of the fee.
2 Total fee revenue may differ slightly from cost attributable to fee program due to rounding.
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based on the ratio of existing facilities to the existing service population on a cost per unit or cost per square foot basis. Under this approach, new dev elopment funds the expansion of facilities at the same standard currently serving existing develo pment. By definition, the existing inventory method ensures that no facility deficiencies are spread to future development.
Table 7-1 identifies the existing fire facilities and Table 7-2 calculates the existing cost per capita/worker. Workers are weighted less than residents to reflect lower per capita service demand.
Non-residential buildings are typically occupied le ss than dwelling units, so it is reasonable to assume that average per-worker demand for services is less than average per-resident demand. The
0.37-weighting factor for workers is based upon a 4 5-hour work week (40 hours of work plus 1 hour lunch break) relative to a resident’s non-working time of 123 hours (168 hours per week less 45 work hours).
The cost per capita/worker is then allocated to eac h development type based on the estimated persons per household and employees per 1,000 squar e feet. Table 7-3 calculates the cost per square foot for the residential units based on the estimated average unit size and cost per 1,000 square feet for non-residential . Calculating the fees based on the new residents or employees generated ensures a reasonable relationship between the fees use and the type of development project.
Requirement 4: Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.
Each new development is anticipated to generate new residents and workers. The addition of new residents and workers creates the need for new fire facilities to maintain the City’s existing level of service. The Fire Facilities Fee is based on the number of applicable workers and/or residents each new development is expected to generate, thus ensuring that the need for the facilities is directly related to a particular development’s impa ct. New workers generate a smaller demand than a resident, thus one worker is considered, on average, as equivalent to 0.37 that of a resident.
The fee for each unit type is calculated in Table 7-3.
Requirement 5: Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.
As new development is constructed, additional fire facilities are needed to meet the City’s existing level of service. The fee is based on the existing inventory method.
The existing level of service is calculated by taking the total fire facilities value and dividing it by the existing service population to derive the exist ing level of service cost per capita/worker as shown in Table 7-2 . The fee for each land use is then calculated by m ultiplying the cost per capita/worker by the projected number of new resident equivalents that each land use will generate,
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and converting to a fee per square foot for residen tial and a fee per 1,000 square foot for non- residential land uses as shown in Table 7-3. Since the need for the facilities directly correl ates to the addition of new residents and workers, determin ing the fee based on the equivalent residents each land use is expected to generate ensures that each new development pays for their fair share of the required future facilities.
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Section 8 Police Facilities Fee
Background
This section presents an analysis of the City’s Pol ice Facilities Fee. The Police Facilities Fee provides funding for police facilities, equipment, and vehicles as a result of increased demand for police services arising from new development. Curre ntly the City has a Public Safety Fee that includes police and fire services. This Nexus Study proposes a separate fee for police and fire. The Police Facilities Fee will include the police porti on of the City’s current Fire and Police Facilities/Equipment Fee, Public Safety Facilities Fee, Police Community Center Fee, and Police Safety Training Site Fee.
The current police headquarters and jail is located within the City Hall building in the City.
Current Level of Service
Table 8-1 shows the City’s current police inventory of polic e facilities, vehicles and equipment.
The current value is divided by the existing servic e population to establish the existing level of service per capita. Table 8-2 calculates the existing level of service per resident/worker.
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Table 8-1: Police Facilities Inventory List
Description Quantity UOM Value 1,2
Police Facilities
Police HQ / Jail 3 31,710 SF 12,969,710.64 $
Police HQ / Jail - Land 3 1.77 AC 770,310.08 $
Subtotal Police Facilities 13,740,020.72 $
Vehicles & Equipment 4
1999 Ford E-450 Mobile Command Post 100,000.00 $
2015 Honda Motorcycle 55,000.00 $
2016 Ford Escape 65,000.00 $
2016 Ford Taurus 65,000.00 $
2016 Ford Taurus 65,000.00 $
2017 Ford C-Max 55,000.00 $
2017 Ford Explorer 65,000.00 $
2017 Ford Explorer 65,000.00 $
2017 Ford Explorer 65,000.00 $
2017 Ford Explorer 65,000.00 $
2017 Ford Explorer 65,000.00 $
2017 Ford Explorer 65,000.00 $
2017 Ford Explorer 65,000.00 $
2017 Ford Explorer 65,000.00 $
2017 Ford Explorer 65,000.00 $
2017 Ford Fusion 65,000.00 $
2017 Ford Fusion 65,000.00 $
2017 Ford Fusion 65,000.00 $
2017 Ford Fusion 65,000.00 $
2017 Ford Fusion 65,000.00 $
2018 Ford F-150 55,000.00 $
2018 Honda Accord 55,000.00 $
2020 Ford F-150 55,000.00 $
2020 Ford Fusion 65,000.00 $
2020 Ford Police Interceptor Utility 65,000.00 $
2020 Ford Police Interceptor Utility 65,000.00 $
2020 Ford Police Interceptor Utility 65,000.00 $
2020 Ford Police Interceptor Utility 65,000.00 $
2020 Ford Police Interceptor Utility 65,000.00 $
2020 Ford Police Interceptor Utility 65,000.00 $
2020 Ford Police Interceptor Utility 65,000.00 $
2020 Ford Police Interceptor Utility 65,000.00 $
2021 Ford Explorer 65,000.00 $
2021 Ford F-150 65,000.00 $
2021 Ford Police Interceptor Utility 65,000.00 $
2021 Ford Police Interceptor Utility 65,000.00 $
2021 Ford Police Interceptor Utility 65,000.00 $
License Plate Reader - Hardware & Software 14,706.00 $
License Plate Reader - Hardware & Software 14,706.00 $
Mini-Caliber Swat Robot 55,709.25 $
Security Lines US HD Cameras (2) 10,945.00 $
Motorola Handheld Radios (100) 865,514.52 $
Motorola Mobile Radios (90) 766,675.86 $
Watchguard In-Car Cameras (8) 54,996.50 $
Subtotal Vehicles & Equipment 4,173,253.13 $
Total Police Facilities 17,913,273.85 $
Notes:
1 2
3 Source:
City of Cathedral City Statement of Values and Listing of Vehicles.
Building & Land values derived from the Cathedral City Statement of Values dated March 29, 2022 provided by Cathedral City Staff on May 11, 2022.
Cost allocation betw een General Government Facilities and Police based on the square footage of each use. Police Facilities utilize 31,710 SF of the 68,140 SF Building.
Vehicle & equipment values derived from the Cathedral City Listing of Vehicles & Art provided on March 23, 2023 and Listing of Non-Mobile Equipment List provided on March 29, 2023 by Cathedral City Staff. Excludes vehicles past their useful life.
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The total police facilities value is divided by the existing service population to establish the existing level of service per resident/worker as shown in Table 8-2.
Table 8-2: Police Facilities Existing Level of Service
Planned Level of Service
The City plans to maintain the current level of ser vice, as shown on Table 8-1, with appropriate participation from new development. Per AB 602, when applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate. This Nexus Study identifies the existing level of service per resident and work er and based on the Nexus Study analysis and discussions with City staff, it has been deemed appropriate to maintain the existing level of service.
As described below, this ensures that no facility deficiencies are spread to future development.
Fee Methodology
The Police Facilities Fee is calculated using the E xisting Inventory Methodology. The existing inventory method uses a facility standard based on the ratio of existing facilities to the existing service population on a cost per unit or cost per s quare foot basis. Under this approach, new development funds the expansion of facilities at th e same standard currently serving existing development. By definition, the existing inventory method ensures that no facility deficiencies are spread to future development. This method is often used when a long-range plan for new facilities is not available.
Description Value
Existing Facilities
Police Facilities 1 13,740,020.72 $
Vehicles & Equipment 2 4,173,253.13 $
Subtotal Police Facilities 17,913,273.85 $
Existing Service Population 3 55,933
Total Existing Level of Service per Resident 320.26 $
Total Existing Level of Service per Worker 118.50 $
Notes:
1 Building values derived from the Cathedral City Statement of Values dated March 29, 2022 provided by Cathedral City Staff on May 11, 2022.
2 Vehicle & equipment values derived from the Cathedral City Listing of Vehicles provided by Cathedral City Staff on March 23, 2023.
3 Source:
City of Cathedral City Statement of Values and Listing of Vehicles.
Existing Service population comprises of the 51,840 Residents and 9,934 Workers (w orkers w eighted at
0.37 based on a 45 hour w ork w eek).
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Fee Summary
The Police Facility Fee per unit is calculated by m ultiplying the cost per resident/worker by the average number of resident/worker equivalents per unit type (density). The cost per capita for non- residential land uses is weighted using the factors shown in Table 3-1. For residential uses, the fee per unit must be converted to a fee per square foot for each unit type by dividing by the average size of each unit. The total fee includes a five pe rcent (5%) administrative charge to fund fee program administrative costs, including but not limited to preparing annual reports, preparing fee updates, and other administrative tasks related to the fee program administration. Table 8-3 summarizes these calculations.
Table 8-3: Police Facilities Fee Summary
Revenue Projections
Using City of Tracy’s $15,213,000 cost estimate for an 8,800 SF Police Substation and other cities’ comparable cost estimates, a new 31,700 squ are foot North City Cathedral City Police Department substation, in today’s dollars, is estimated to cost $54 million. This substation would need to be operational before Buildout. Revenues collected through development impact fees will not fully fund the required facilities. Table 8-4 shows the approximate Police Facilities Fee revenues collected at Buildout.
Table 8-4 summarizes the anticipated Police Facilities Fee re venues collected at Buildout. To ensure that the police department can meet the need s of the growing City community, the police department will eventually need to build additional police facilities. The following list provides examples of future police facilities that may be constructed as the City grows in order to maintain existing levels of service. This list is not all inclusive and may be modified as facility requirements change:
Land Use
Cost Per
Resident /
Worker Density Subtotal Fee
Administration
Fee 1 Total Fee
Average Unit
Size (SF) Fee/SF
Residential (per Unit) (per Unit) (per Unit)
Single Family 320.26 $ 2.85 912.74 $ 45.64 $ 958.38 $ 2,000 0.48 $ Multi Family 320.26 $ 2.51 803.86 $ 40.19 $ 844.05 $ 1,250 0.68 $ Non-Residential 2 (per 1,000 SF) (per 1,000 SF) (per 1,000 SF) Commercial 118.50 $ 1.82 215.66 $ 10.78 $ 226.44 $ Office 118.50 $ 4.00 473.99 $ 23.70 $ 497.69 $ Industrial 118.50 $ 0.40 47.40 $ 2.37 $ 49.77 $ Notes:
1 2
Source:
City of Cathedral City Statement of Values and Listing of Vehicles.
An administrative fee of 5% is included in the fees show n 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.
Workers are w eighted at 0.37 based on a 45 hour w ork w eek relative to a resident's time of 123 hours (168 hours per w eek less 45 w ork hours).
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• A North City station (approximately 31,700 square feet) • Six-lane indoor shooting range (currently, the City has an agreement to utilize a private gun range. CCPD usage is (i) subject to competition from general public training usage and (ii) at risk of termination in the event the range permanently closes) • Locker room
• 20’x 20’ Property evidence room
• Covered and secured evidence area used for processing several vehicles and bulk evidence
• Secured parking for employee and marked vehicles
• Gym
• Lunch room
• Training center with storage space for training mats
Using City of Tracy’s $15,213,000 cost estimate for an 8,800 SF Police Substation and other cities’ comparable cost estimates, a new 31,700 square foot North City Cathedral City Police Department substation, in today’s dollars, is estimated to cos t $54 million. This substation would need to be operational before Buildout. Revenues collected th rough development impact fees will not fully fund the required facilities. Table 8-4 shows the approximate Police Facilities Fee revenu es collected at Buildout.
Table 8-4: Anticipated Police Facilities Estimated Revenue at Buildout
Nexus Requirement Summary
The Police Facilities Fee component of this DIF Study meets the Mitigation Fee Act Requirements, as described in this section.
Requirement 1: Identify the purpose of the fee.
The purpose of the Police Facilities Fee is to fund new development’s fair-share portion of new police facilities, such as new police sub-stations, vehicles and police equipment required for the Land Use
Proposed
Fee 1
Anticipated
Growth
(units)
Anticipated
Growth
Anticipated
Fee Collection
at Buildout 2
Residential per SF SF
Single Family $0.48 8,266 16,531,000 $7,921,490
Multi Family $0.68 24,531 30,663,915 $20,705,502
Non-Residential
per 1000 SF 1000 SF
Commercial $226.44 n/a 11,488 $2,601,360
Office $497.69 n/a 11,468 $5,707,592
Industrial $49.77 n/a 15,565 $774,647
Total $37,710,592
1 Includes the administrative portion of the fee.
2 Total fee revenue may differ slightly from cost attributable to fee program due to rounding.
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additional police personnel that are necessary to m itigate the impacts of new development. Each new resident and worker creates a demand for additional police facilities. In order to accommodate these needs, new police facilities will be built an d/or existing facilities will be expanded per capita/worker.
Requirement 2: Identify the use of the fee.
The Police Facilities Fee will be used to fund new development’s fair-share portion of the police facilities, new police sub-stations, vehicles and p olice equipment required to serve new development in order to maintain the City’s existing level of service. The anticipated fee revenue at Buildout is shown on Using City of Tracy’s $15,213,000 cost estimate for an 8,800 SF Police Substation and other cities’ comparable cost estima tes, a new 31,700 square foot North City Cathedral City Police Department substation, in tod ay’s dollars, is estimated to cost $54 million.
This substation would need to be operational before Buildout. Revenues collected through development impact fees will not fully fund the req uired facilities. Table 8-4 shows the approximate Police Facilities Fee revenues collected at Buildout.
Table 8-4. The capital improvement projects are identified in Appendix A.
Requirement 3: Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.
The fee will be used to fund new police facilities that are necessary to serve the increased residents and workers in the City. New development generates additional residents and workers which increases the demand for police facilities. The exi sting inventory method uses a facility standard based on the ratio of existing facilities to the existing service population on a cost per unit or cost per square foot basis. Under this approach, new dev elopment funds the expansion of facilities at the same standard currently serving existing develo pment. By definition, the existing inventory method ensures that no facility deficiencies are spread to future development.
Table 8-1 identifies the existing police facilities and Table 8-2 calculates the existing cost per resident/worker. Workers are weighted less than res idents to reflect lower per capita service demand. Non-residential buildings are typically occ upied less intensively than dwelling units, so it is reasonable to assume that average per-worker demand for services is less than average per- resident demand. The 0.37-weighting factor for work ers is based upon a 45-hour work week (40 hours of work plus 1 hour lunch break) relative to a resident’s non-working time of 123 hours (168 hours per week less 45 work hours).
The cost per capita/worker is then allocated to eac h development type based on the estimated persons per household and employees per 1,000 squar e feet. Table 8-3 calculates the cost per square foot for the residential units based on the estimated average unit size and cost per 1,000 square feet for non-residential . Calculating the fees based on the new residents or employees
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generated ensures a reasonable relationship between the fees use and the type of development project.
Requirement 4: Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.
Each new development is anticipated to generate new residents and workers. The addition of new residents and workers creates the need for new police facilities to maintain the City’s existing level of service. The Police Facilities Fee is based on the number of applicable workers and/or residents each new development is expected to generate, thus ensuring that the need for the facilities is directly related to a particular development’s impa ct. New workers generate a smaller demand than a resident, thus one worker is considered, on average, as equivalent to 0.37 that of a resident.
The fee for each unit type is calculated in Table 8-3.
Requirement 5: Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.
As new development is constructed, additional polic e facilities are needed to meet the City’s existing level of service. The fee is based on the existing inventory method.
The existing level of service is calculated by taking the total police facilities value and dividing it by the existing service population to derive the ex isting level of service cost per resident/worker as shown in Table 8-2 . The fee for each land use is then calculated by m ultiplying the cost per resident/worker by the number of new resident equiv alents that each land use will generate and converted to a fee per square foot for residential and fee per 1,000 square foot for non-residential land uses as shown in Table 8-3. Since the need for the facilities directly correlates to the addition of new residents and workers, spreading the fee based on the equivalent residents each land use is expected to generate ensures that each new developm ent only pays for their fair share of the required facilities.
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Section 9 Implementation and Administration
Implementation
According to the California Government Code, prior to levying a new fee or increasing an existing fee, an agency must hold at least one open and publ ic meeting with at least 30 days’ notice. In addition, notice of the time and place of the meeting, including a general explanation of the matter to be considered, and a statement that the data required by this section is available, shall be mailed at least 14 days prior to the meeting to any intere sted party who files a written request with the local agency for mailed notice of the meeting on ne w or increased fees or service charges. Any written request for mailed notices shall be valid f or one year from the date on which it is filed unless a renewal request is filed. At least ten days prior to this meeting, the agency must make data on infrastructure costs and funding sources available to the public. Notice of the time and place of the meeting and a general explanation of the matter are to be published in accordance with Section 6062a of the Government Code, which states that publication of notice shall occur for ten days in a newspaper regularly published once a week or more. The new or increased fees shall be effective no earlier than 60 days following the final action on the adoption or increase of the fees.
Fee Program Administrative Requirements
The Government Code requires the City to report every year and every fifth year certain financial information regarding the fees. The City must make available within 180 days after the last day of each fiscal year the following information from the prior fiscal year:
1. A brief description of the type of fee in the account or fund.
2. The amount of the fee.
3. The beginning and ending balance in the account or fund.
4. The amount of the fee collected and the interest earned.
5. An identification of each public improvement for wh ich fees were expended and the amount of expenditures.
6. An identification of an approximate date by which t ime construction on the improvement will commence if it is determined that sufficient funds exist to complete the project.
7. A description of each interfund transfer or loan made from the account and when it will be repaid.
8. Identification of any refunds made once it is deter mined that sufficient monies have been collected to fund all fee related projects.
The City must make this information available for p ublic review and must also present it at the next regularly scheduled public meeting not less th an 15 days after this information is made available to the public.
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For the fifth fiscal year following the first depos it into the account or fund, and every five years thereafter, the City must make the following findin gs with respect to any remaining funds in the fee account, regardless of whether those funds are committed or uncommitted:
1. Identify the purpose to which the fee is to be put.
2. Demonstrate a reasonable relationship between the f ee and the purpose for which it is charged.
3. Identify all sources and amounts of funding anticip ated to complete financing any incomplete improvements.
4. Designate the approximate dates on which funding in item (3) above is expected to be deposited into the fee account.
As with the annual disclosure, the five-year report must be made public within 180 days after the end of the City’s fiscal year and must be reviewed at the next regularly scheduled public meeting.
Fee Adjustment Procedures
The DIFs may be adjusted periodically to reflect re vised facility requirements, receipt of funding from alternative sources (i.e., state, or federal g rants), revised facilities or costs, changes in demographics, changes in the average unit square fo otage, or changes in the land use plan. In addition, in July of each calendar year, the fees will be adjusted using the Construction Cost Index (CCI) for the Los Angeles Region as reported by Engineering News Record (ENR) for the twelve- month period ending in May or a similar published i ndex if the CCI Index is no longer available. For example, the adjustment for July 2024 will be determined by taking the percentage change of the Los Angeles construction cost index f rom May 2023 to May 2024. City staff will calculate the annual adjustment utilizing the CCI I ndex. The adjusted fees will be summarized in a resolution to be approved by City Council following the required noticing as outlined by section 66016 of the California Government Code.
Timing of Fee Payment
Fees will be collected at the time the building per mit for the project is issued. All residential projects will pay a fee based on the livable square footage of the residential unit(s). For high- density residential projects, the fee will be due at the time of the building permit for each building.
For high-density residential projects, the non-resi dential communal portion (i.e., clubhouse, maintenance facility, gym, etc.) will not be assess ed impact fees as the impact is assumed to be captured in the residential fees. Area that are acc essible by the public (i.e., leasing office) will b e charged impact fees according to use.
Credits and Reimbursement Policies
The City may provide fee credits or reimbursements to developers who dedicate land or construct eligible facilities. Fee credits or reimbursements may be provided up to the cost of the
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improvement, as shown in this study, subject to per iodic inflation adjustments, or the actual cost paid by the developer, whichever is lower. For construction cost overruns, only that amount shown in the study, subject to periodic inflation adjustments, would be credited or reimbursed. The City will evaluate the appropriate fee credit or reimbur sement based on the value of the dedication or improvement. Credits or reimbursements may be repa id based on the priority of the capital improvements, as determined by the City. The City will determine fee credits and reimbursements on a case-by-case basis and possibly through the use of a development agreement.
Administrative Fee
An administrative fee of five (5) percent is includ ed as part of each of the fees and may be used for costs for legal, accounting, and other administ rative support and development impact fee program administration costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analysis. Additionally, the administrative fee may be used to fund the impact fee nexus study updated that must be updated at a minimum every eight (8) years pursuant to AB602. Please refer to the individual f ee calculation tables for a breakdown of the administration fee.
Programming Revenues with the CIP
The City should maintain its CIP to adequately plan for future infrastructure needs. The CIP should commit all projected fee revenues and fund balances to specific projects that are necessary to serve growth as described in this report. The use of the CIP provides documentation necessary for the City to hold funds in a project account for longer than five years if necessary to collect sufficient funds to complete a project. In addition, the CIP i s required per AB602. This report outlines the projects that are to be funded with the fee program and forms the basis of the CIP, as shown in Appendix A .
Fee Reporting
Assembly Bill No. 1483, which became effective January 1, 2020, requires that public agencies make the following information available on their website. The following information must be provided:
1. A current schedule of fees, exactions, and affordab ility requirements imposed by the city, county, or special district, including any dependent special districts, of the city or county applicable to a proposed housing development project, which shall be presented in a manner that clearly identifies the fees, exact ions, and affordability requirements that apply to each parcel.
2. All zoning ordinances and development standards, wh ich shall specify the zoning, design, and development standards that apply to each parcel.
3. The list of information required to be compiled pursuant to Section 65940.
4. The current and five previous annual fee reports or the current and five previous annual financial reports, which were required pursuant to subdivision.
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5. An archive of impact fee nexus studies, cost of service studies, or equivalent, conducted by the city, county, or special district on or after January 1, 2018.
Any updates to the above information must be available within 30 days.
Accessory Dwelling Units
An accessory dwelling unit (ADU) is a second unit t hat is attached or detached from a single- family home. In accordance with Assembly Bill No. 8 81 approved on October 9, 2019, fees will not be charged for an ADU that is less than 750 square feet. For an ADU that is 750 square feet or larger, the ADU will be charged proportionately in relation to the square footage of the primary dwelling unit. Since the residential fees are now b eing charged on a square footage basis, ADU fees will be calculated by multiplying the Single-F amily Residential fee by the ADU’s square footage.
Specialized Development Projects
The fees in this Report may not apply to specialize d development projects such as golf courses, cemeteries, sports stadium, or other specialized la nd uses. For specialized development projects the City will review the development’s impacts to d etermine the applicable fees. The fee rates presented in this Report may be reduced, exempted, or waived under certain circumstances as determined by the City. Any exemption or reduction in fees will be based on the City’s independent analysis and review of the subject property. In add ition, for reuse, density increasing, or rezone projects, the developer shall only be responsible f or paying fees for the intensification of the development. In cases of disaster, impact fees will not be charged on the rebuilding of the structures that were affected by the disaster to th e extent that the overall size and use of the new structure is similar to the structure destroyed by the disaster. The City will review the development’s increased impacts to determine the applicable fees.
Some developments may include more than one land use type. In these cases, the fee is calculated separately for each land use. The City has the disc retion to impose the fees based on the specific aspects of a proposed development regardless of zoning. The fee imposed should be based on the land use type that most closely represents the impacts of the development.
Rebuild or Expansion Projects
For reuse, expansions, density increasing, or rezon e projects, the developer shall only be responsible for paying fees for the intensification or expansion. For example, if a homeowner wishes to build an addition to their home that is 1 00 square feet, the homeowner would be responsible for paying fees for the 100 square foot addition. The City will review the new development’s impacts to determine the applicable fees on a case by case basis.
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In cases of rebuilding a structure after a demolition, impact fees will not be assessed on the rebuild to the extent that the overall size and use of the new structure is similar to the structure prior to demolition. Similarly, in cases of disaster, impact fees will not be charged on the rebuilding of the structures that were affected by the disaster to th e extent that the overall size and use of the new structure is the same as the structure destroyed by the disaster. Impact fees for the new structure will be calculated based on the new rebuilt structu re and the fees paid for the previous structure, and the difference between these fees will be asses sed. No refunds will be made for rebuilds that have a lower impact fee than the previous structure.
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Appendix A: Capital Improvement Plan
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Table A-1: Capital Improvement Plan
Item Total Project Cost
Other Funding Sources/
Amount Expended DIF Project Cost
Park Improvements
Park Facilities (Assumes 255.39 acres) 1 $191,542,500 n/a $191,542,500 Subtotal Park Improvement Costs $191,542,500 $0 $191,542,500 General Government Facilities
City Hall (Expansion and new facilities) $59,380,900 $0 $59,380,900 Library Expansion or New Facilities $34,501,500 $0 $34,501,500 Subtotal General Government Facilities Costs $93,882,400 $0 $93,882,400 Fire Facilities
North Area Fire Station #1 $9,800,000 $0 $9,800,000
North Area Fire Station #1 Apparatuses $2,000,000 $0 $2,000,000 North Area Fire Station #1 Land $871,200 $0 $871,200
North Area Fire Station #2 $9,800,000 $0 $9,800,000
North Area Fire Station #2 Apparatuses $2,000,000 $0 $2,000,000 North Area Fire Station #2 Land $871,200 $0 $871,200
Fire Training Facility $15,000,000 $0 $15,000,000
Subtotal Fire Facilities Costs $40,342,400 $0 $40,342,400 Police Facilities
North City Police Station $54,801,375 $0 $54,801,375
Subtotal Police Facilities Costs $54,801,375 $0 $54,801,375 Roads and Intersections
Date Palm Drive (Vista Chino to Gerald Ford Drive) $7,577,838 $2,374,279 $5,203,559 Dinah Shore Drive (Whispering Palms to Pumley Road) $1,743,769 $546,355 $1,197,413 East Palm Canyon Drive (West City Limits to East Bu ddy Rodgers) $3,833,332 $1,201,055 $2,632,277 Perez Road (Campbell Street to Date Palm Drive) $1,349,069 $422,689 $926,380 Ramon Road (Landua Blvd to Da Vall Drive) $4,111,915 $1,288,340 $2,823,575 Varner Road (Palm Drive to Bob Hope) $24,889,298 $7,798,285 $17,091,013 Vista Chino (City Limits to Date Palm Drive/End) $3,681,251 $1,153,405 $2,527,846 Valley Center Road (Palm Drive to Bob Hope) $28,036,619 $8,784,400 $19,252,220 Date Palm Drive / Varner Road $1,800,000 $563,974 $1,236,026 Date Palm Drive / Valley Center Road $1,800,000 $563,974 $1,236,026 Date Palm Drive / Tachevah Drive $1,800,000 $563,974 $1,236,026 Varner Road / Edom Hill Road $1,200,000 $375,983 $824,017 Varner Road / Mountain View Road $1,200,000 $375,983 $824,017 Landau Blvd / Tachevah Drive $1,200,000 $375,983 $824,017 Cathedral Canyon Drive / 33rd Avenue $1,200,000 $375,983 $824,017 Dinah Shore / Whispering Palms Trail $1,200,000 $375,983 $824,017 East Palm Canyon / Margot Murphy Way $1,800,000 $563,974 $1,236,026 East Palm Canyon / Cree Road $1,800,000 $563,974 $1,236,026 Subtotal Roads and Intersections Costs $90,223,091 $28,268,590 $61,954,501 Bikeways & Multi-Modal Facilities
Off Street (CV Link) (Date Palm Dr to Palm Springs Motors/Motel 6) $646,272 $202,489 $443,783 Ramon Road (Landau Blvd to DaVall) $1,910,304 $598,534 $1,311,770 Valley Center Boulevard (Palm Drive to Varner/Bob Hope) $6,966,432 $2,182,714 $4,783,718 Varner Rd (Palm Drive to Bob Hope Drive) $7,289,568 $2,283,959 $5,005,609 Bob Hope Dr/Rio Del Sol (20th Avenue to I-10) $798,336 $250,134 $548,202 East Palm Canyon Drive (Golf Club to Buddy Rogers Avenue) $176,616 $55,337 $121,279 Date Palm Drive (Varner Road to East Palm Canyon Drive) $459,360 $143,926 $315,434 Perez Road (East Palm Canyon to Kyle Road (East)) $26,136 $8,189 $17,947 Gerald Ford Drive (Date Palm to Da Vall) $78,408 $24,567 $53,841 Da Vall Drive (Varner Road to Dinah Shore Drive) $256,608 $80,400 $176,208 Santoro Drive (McCallum Way to Ramon Road) $39,600 $12,407 $27,193 Tachevah Drive (Santoro to Vista Chino) $18,216 $5,707 $12,509 Vista Chino (Date Palm to Da Vall) $95,040 $29,778 $65,262 Palm Drive (Varner Road to I-10) $72,072 $22,582 $49,490 Landau Boulevard (Valley Center Boulevard to Vista Chino) $96,624 $30,274 $66,350 Off Road (Perez Road to Civic Center North) $11,880 $3,722 $8,158 Off Street (CV Link) (Wash/Cat Canyon Golf Club to Date Palm Drive) $102,960 $32,259 $70,701 Off Road (CV Link) (Dinah Shore to Cat Canyon Golf Club) $40,392 $12,656 $27,736 Landau Boulevard (Vista Chino to 30th Avenue) $158,400 $49,630 $108,770 Subtotal Bikeways & Multi-Modal Facilities Costs $19,084,824 $5,979,634 $13,105,190 Total Capital Improvement Projects $489,876,590 $34,248,223.67 $455,628,366.23 Notes:
1 The specific location of Park improvements w ill be dictated by the individual developments and cannot be determined at this time. It is anticipated that Parks w ill be provided w ithin residential development projects.
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
AB1600 Fee Justification Nexus Study 59 July 2023
City of Cathedral City
Appendix B: Transportation Cost Details
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
AB1600 Fee Justification Nexus Study 60 July 2023
City of Cathedral City
Table B-1: Street and Traffic Signals
Street / Traffic Signals Beginning Location End Locat ion Total Cost Street Improvements
Date Palm Drive Vista Chino Gerald Ford Drive 7,577,83 7.88 $ Dinah Shore Drive Whispering Palms Pumley Road 1,743, 768.63 $ East Palm Canyon Drive West City Limits East Buddy Ro gers 3,833,332.38 $ Perez Road Campbell Street Date Palm Drive 1,349,068.7 5 $ Ramon Road Landua Blvd Da Vall Drive 4,111,915.25 $
Varner Road Palm Drive Bob Hope 24,889,298.00 $
Vista Chino City Limits Date Palm Drive/End 3,681,250 .63 $ Valley Center Road Palm Drive Bob Hope 28,036,619.40 $
Subtotal Street Improvements 75,223,090.90 $
Traffic Signals
Date Palm Drive / Varner Road Date Palm Drive Varner Road 1,800,000.00 $ Date Palm Drive / Valley Center Road Date Palm Drive Valley Center Road 1,800,000.00 $ Date Palm Drive / Tachevah Drive Date Palm Drive Tac hevah Drive 1,800,000.00 $ Varner Road / Edom Hill Road Varner Road Edom Hill Ro ad 1,200,000.00 $ Varner Road / Mountain View Road Varner Road Mountain View Road 1,200,000.00 $ Landau Blvd / Tachevah Drive Landau Blvd Tachevah Dri ve 1,200,000.00 $ Cathedral Canyon Drive / 33rd Avenue Cathedral Canyo n Drive 33rd Avenue 1,200,000.00 $ Dinah Shore / Whispering Palms Trail Dinah Shore Whi spering Palms Trail 1,200,000.00 $ East Palm Canyon / Margot Murphy Way East Palm Canyo n Margot Murphy Way 1,800,000.00 $ East Palm Canyon / Cree Road East Palm Canyon Cree R oad 1,800,000.00 $ Subtotal Traffic Signals 15,000,000.00 $
Total Street Improvements & Traffic Signal Faciliti es 90,223,090.90 $ Notes:
1 Future street improvements and traffic signal facilities developed by the City of Cathedral City Engineering Department.
Source:
City of Cathedral City.
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study)
AB1600 Fee Justification Nexus Study 61 July 2023
City of Cathedral City
Table B-2: Future Bikeways and Multi-Modal Facilities
Street/Path Segment Classification
Length
(mi.) Total Cost
Class I
Off Street (CV Link) Date Palm Dr to Palm Springs Mo tors/Motel 6 Class I Future 0.68 646,272.00 $ Ramon Road Landau Blvd to DaVall Class I Future 2.01 1,910,304.00 $ Valley Center Boulevard Palm Drive to Varner/Bob Hop e Class I Future 7.33 6,966,432.00 $ Varner Rd Palm Drive to Bob Hope Drive Class I Future 7.67 7,289 ,568.00 $ Bob Hope Dr/Rio Del Sol 20th Avenue to I-10 Class I F uture 0.84 798,336.00 $ Subtotal Class I 18.53 17,610,912.00 $
Class 2
East Palm Canyon Drive Golf Club to Buddy Rogers Ave nue Class II Future 2.23 176,616.00 $ Date Palm Drive Varner Road to East Palm Canyon Driv e Class II Future 5.80 459,360.00 $ Perez Road East Palm Canyon to Kyle Road (East) Class II Future 0.33 26,136.00 $ Gerald Ford Drive Date Palm to Da Vall Class II Futur e 0.99 78,408.00 $ Da Vall Drive Varner Road to Dinah Shore Drive Class II Future 3.24 256,608.00 $ Santoro Drive McCallum Way to Ramon Road Class II Future 0.50 39,600 .00 $ Tachevah Drive Santoro to Vista Chino Class II Future 0.23 18,216.00 $ Vista Chino Date Palm to Da Vall Class II Future 1.20 95,040.00 $ Palm Drive Varner Road to I-10 Class II Future 0.91 72,072.00 $ Landau Boulevard Valley Center Boulevard to Vista Ch ino Class II Future 1.22 96,624.00 $ Subtotal Class II 16.65 1,318,680.00 $
Off Road Shared NEV/Bike
Off Road Perez Road to Civic Center North Off Road Shared NEV /Bike 0.15 11,880.00 $ Off Street (CV Link) Wash/Cat Canyon Golf Club to Da te Palm Drive Off Road Shared NEV/Bike 1.30 102,960.00$ Off Road (CV Link) Dinah Shore to Cat Canyon Golf Cl ub Off Road Shared NEV/Bike 0.51 40,392.00 $ Landau Boulevard Vista Chino to 30th Avenue Off Road Shared NEV/Bike 2.00 158,400.00 $ Subtotal Off Road Shared NEV/Bike 3.96 313,632.00 $
Total Future Bikeways & Multi-Modal Facilities 39.14 19,243,224.00 $ Notes:
1 Future bikew ays & multi-modal facilities derived from the City of Cathedral City Comprehensive General Plan dated July 1, 2019. 2 Cost estimates per mile provided by the City of Cathedral City on August 18, 2022.
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Attachment: 2023.07.23 DRAFT Cathedral City Nexus Study (3848 : AB 1600 Fee Justification Nexus Study) Land Use Parks Transportation
General
Government
Facilities Fire Police
Total per
Residential
Square Foot or
Per Commercial
1,000 Sq.ft.
Residential
Single Family 3.37$ 0.64$ 1.25$ 0.69$ 0.48$ 6.43$ Multi-family 4.74$ 0.61$ 1.76$ 0.97$ 0.68$ 8.76$ Non-Residential (Fee per 1,000 sq.ft. of Inhabitable Space) Commercial N/A 2,147.52$ 590.43$ 325.64$ 226.44$ 3,290.03$ Office N/A 1,804.49$ 1,297.63$ 715.68$ 497.69$ 4,315.49$ Industrial N/A 273.65$ 129.76$ 71.57$ 49.77$ 524.75$ DEVELOPMENT TYPE:
Residential
Square Foot or
Unit
Assumption
Dev. Impact
Fee
Police/Fire/Sign
al
Total Fees
South of I10
Dev. Impact
Fee
Police/Fire/Si
gnal
Total Fees
North of I10
Single Family (one unit) 2,000 1,850.00$ 300.00$ 2,150.00$ 3,458.00$ 300.00$ 3,758.00$ Multi-family 8 Units 14,800.00$ 1,200.00$ 16,000.00$ 27,664.00$ 1,200.00$ 28,864.00$ Non-Residential
Commercial/Retail 2,000 514.40$ 300.00$ 814.40$ 2,201.70$ 300.00$ 2,501.70$ Office/Non-Retail 2,000 312.40$ 300.00$ 612.40$ 962.80$ 300.00$ 1,262.80$ Industrial/Non-Retail 2,000 312.40$ 300.00$ 612.40$ 962.80$ 300.00$ 1,262.80$ DEVELOPMENT TYPE:
Residential
Square Foot or
Unit
Assumption
TOTAL
CURRENT DIF +
PFS
TOTAL
PROPOSED FEE
Percentage
Change
TOTAL
CURRENT DIF
+ PFS
TOTAL
PROPOSED
FEE
Percentage
Change
Single Family 2,000 2,150.00$ 12,860.00$ 498% 3,758.00$ 12,860.00$ 242% Multi-family 8 Units 16,000.00$ 70,080.00$ 338% 28,864.00$ 70,080.00$ 143% Non-Residential
Commercial/Retail 2,000 814.40$ 6,580.06$ 708% 2,501.70$ 6,580.06$ 163% Office/Non-Retail 2,000 612.40$ 8,630.98$ 1309% 1,262.80$ 8,630.98$ 583% Industrial/Non-Retail 2,000 612.40$ 1,049.50$ 71% 1,262.80$ 1,049.50$ -17% * The above table illustrates development impact fees assuming a 2,000 square foot single family detached home, an eight (8) unit multifamily project (8,000 total livable square feet), and a 2,000 square foot commercial/retail space. ** Note: The current A.B. 1600 fee schedule bases fees on whether a project is located north of Interstate 10 or south of Interstate 10.The Nexus Study establishes one set of DIF fees irrespective of whether a future project is located north or south of Interstate 10.
A.B. 1600 DEVELOPMENT IMPACT FEE SUMMARY
PROPOSED DIF FEES, CURRENT DIF FEES, SIDE-BY-SIDE COMPARISION BETWEEN CURRENT AND PROPOSED AUGUST 9, 2023
South of I10 North of I10
CURRENT AB 1600 FEES (Adopted January 2006)
PROPOSED FEE INCREASE OR (DECREASE)
AUGUST 9, 2023 PROPOSED DEVELOPMENT IMPACT FEES
Current Fee (North of I10)Current Fee (South of I10)
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Attachment: 2023-07-27 DIF FEE SUMMARY OF CURRENT FEES, PROPOSED FEES, AND PERCENTAGE DIFFERENCE (3848 : AB 1600 Fee 1 DEVELOPMENT IMPACT FEE PROGRAM CITY COUNCIL STUDY SESSIONJune 28, 2023
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 2 AGENDA•Project Team•Development Impact Fees Overview•AB 602•Nexus Study Updates and History •Proposed Development Impact Fees•Fee Comparisons•Policy Decisions •Fee Program Timeline•Questions
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 3 PROJECT TEAMMegan QuinnDirector, Municipal + District Finance Adam MarstonProject Manager, Municipal + District Finance
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 4 Development Impact Fees (DIFs) are fees imposed by a local government on new development projects to ensure public services and infrastructure will be sufficient to serve new development. Governing law for DIFs is Assembly Bill 1600 (Mitigation Fee Act) (GC 66000)Fees are established on new development’s fair share based on a rational nexus testDIFs are a one-time fee on new development to mitigate their impactsOnly includes cost attributable to new development Fees can only fund capital costs Fees cannotfund existing deficienciesFee cannotfund ongoing maintenance or salariesFunds must be used for the projects for which they were intendedIf not spent, funds must be returned to the property owner Must meet Annual and Five-Year Reporting requirements per AB 1600
DEVELOPMENT IMPACT FEES (DIFS)OVERVIEW
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 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 newinfrastructure 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 FEESCONTINUED
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 6 •Adopted in late 2021 (Partially enacted in January 2022; Fully in effect as of July 2022)•As part of the Nexus Study, encourages Agency to charge fees on residential land uses per square foot•Fees can be charged on a per unit basis if the Agency can make findings as to why a square footage fee is not appropriate•Nexus Study must identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is necessary•Requires that the Agency includes a Capital Improvement Program (CIP) as part of the Nexus Study•Nexus Study updated every 8 years ASSEMBLY BILL (AB) 602
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 7 •Updated Data: Coordinated with City staff to obtain land use information, list of proposed capital improvements for new development, existing infrastructure/facilities inventory, value of existing facilities and vehicles, and other necessary data.•Land Uses: Updated based on the General Plan.•Updated Methodology: Updated methodology based on AB602 –including review of existing level of service, residential fees per square foot, and added a capital improvement plan to the Nexus Study. •Fee Updates: Reviewed existing fees, determined proposed fees based on results of Nexus Study, and consolidated some fee categories for additional flexibility.•Coordination Meetings: Harris scheduled numerous teleconferences with various City departments to discuss the facility needs to support new development, updated costs, and fee methodology and key assumptions. City staff reviewed the draft tables and draft Nexus Study.
NEXUS STUDY UPDATES
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 8 •History•Government Services, Public Safety, Transportation, and Parks and Recreation Fee updated in 2009•MUP adopted in 1990•Reviewed Art in Public Places Fee•Identify Impact Fees per the Mitigation Fee Act•Cannot fund maintenance•Cannot fund salary positions•Tied to impacts caused by new developments•Fee Update ActivitiesoMet with City Staff to confirm future growth projections, facility inventory and facility valuationsoUpdated costs and reviewed methodology and assumptions HISTORY OF CATHEDRAL CITY FEESNotesCurrent FeesUndergrounding study (1990) recommended no change to current fee or change to In-Lieu FeeMaster Underground Plan (MUP)Included in Separate Fire Facilities Fee and Police FacilitiesFeeFire and Police Facilities/EquipmentIncluded in Transportation FeeTraffic SignalizationIncluded in General Government Facilities FeeCity Yard Vehicle StorageIncluded in Police Facilities FeePolice Community CenterIncluded in Police Facilities FeePublic Safety Training SiteIncluded in Separate Fire Facilities Fee and Police FacilitiesFeePublic Safety FacilitiesIncluded in Transportation FeeRoad and Traffic FacilitiesIncluded in Transportation FeeInterchange and BridgesIncluded in Transportation FeeBikeway FacilitiesIncluded in Transportation FeeTrail FacilitiesIncluded in Park Facilities FeePark and Recreation FacilitiesNo Change – not an AB1600 FeeTransit DevelopmentNo change – not an AB1600 FeeArt in Public Places
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 9 •Residential fees per square foot in order to comply with AB602•Level of Service, Facility Standards, and Planned Facilities Methodology Updates312CHANGES TO THE FEE PROGRAMFee consolidation for additional flexibility and ease of administration:•Transportation•Fire•Police•General Government Fee
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 10 PARK FACILITIES FEEFACILITY STANDARD METHODDescription ValueFuture FacilitiesFuture Park Improvements 191,542,500$ Subtotal Park Improvements 1191,542,500$ Future Service Population85,130 Total Existing Level of Service per Capita 2,250$ Notes: 1 Cost per Acre of Park Improvements provided by the City of Cathedral City on August 18, 2022.Source: City of Cathedral City General Plan.•Based on General Plan Standard of 3 acres per 1,000•Park improvement cost per acre provided by City References: 19/149
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 11 PARK FACILITIES FEEPROPOSED FEELand UseCost Per Capita DensitySubtotal Fee(per unit)Administration Fee(per unit)Total Fee(per unit)Average Unit Size (SF) Fee/SFResidential Single Family 2,250$ 2.85 6,412.50$ 320.63$ 6,733.13$ 2,000 3.37$ Multi Family 2,250$ 2.51 5,647.50$ 282.38$ 5,929.88$ 1,250 4.74$ Notes: 1Source: City of Cathedral City Comprehensive General Plan.An administrative fee of 5% is included in the fees show n 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.References: 20/150
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 12 TRANSPORTATION FEEPLANNED FACILITIES METHODDescription ValueStreet Improvements / Traffic Signals1Street Improvements 75,223,090.90$ Traffic Signals 15,000,000.00$ Subtotal Street Improvements / Traffic Signals 90,223,090.90$ Mobility Improvements 2,3Class I 17,610,912.00$ Class 2 1,318,680.00$ Off Road Shared NEV/Bike 313,632.00$ Subtotal Mobility Facilities 19,243,224.00$ TripsExisting Trips 265,832 Future Additional Trips 582,607 Subtotal Trips 848,439 Trip AllocationExisting Trips 31%Future Additional Trips 69%Subtotal Trips 100%Transportation Improvements Cost AllocationExisting Development Responsibility 34,297,853.37$ Future Development Responsibility 75,168,461.53$ Subtotal Improvement Costs 109,466,314.90$ Total Transportation Fee per Future Trip 129.02$ Notes: 1 Future street improvements and traffic signal facilities developed by the City of Cathedral City Engineering Department.2 Future bikew ays & multi-modal facilities derived from the City of Cathedral City Comprehensive General Plan dated July 1, 2019.3 Cost estimates per mile provided by the City of Cathedral City on August 18, 2022. Source: City of Cathedral City Comprehensive General Plan and Cathedral City Active Transportation Plan and City of Cathedral City.•Planned Facilities Method•Merge Transportation Fees for ease of administration •Identify Cost per Trip using Institute of Transportation Engineers trip generation assumptions for each land useReferences: 24/154
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 13 TRANSPORTATION FACILITIES FEEPROPOSED FEELand Use Cost per Trip TripsEmployees per 1,000 SFImprovement FeeAdministration Fee Total FeeAverage Unit Size (SF) Fee/SFResidential (per Unit)(per Unit)(per Unit)Single Family 129.02$ 9.43 - 1,216.67$ 60.83$ 1,277.50$ 2,000 0.64$ Multi Family 129.02$ 5.64 - 727.68$ 36.38$ 764.06$ 1,250 0.61$ Non-Residential(per 1,000 SF)(per 1,000 SF)(per 1,000 SF)Commercial 129.02$ 8.71 1.82 2,045.26$ 102.26$ 2,147.52$ Office 129.02$ 3.33 4.00 1,718.56$ 85.93$ 1,804.49$ Industrial 129.02$ 5.05 0.40 260.62$ 13.03$ 273.65$ Notes: 1An administrative fee of 5% is included in the fees show n 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.Source: Institute of Transportation Engineer's 11th Edition.References: 28/158
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 14 GENERAL GOVERNMENT FACILITIES FEEEXISTING LEVEL OF SERVICE Description ValueExisting Facilities 1General Government Facilities 45,253,966$ Vehicles & Equipment 1,067,022$ Subtotal General Government Facilities46,320,988$ Existing Service Population 255,933 Total Existing Level of Service per Resident 828.15$ Total Existing Level of Service per Worker 306.42$ Notes: 12Source: City of Cathedral City Statement of Values and Listing of Vehicles & Art. Existing Facilities values derived from the Cathedral City "Statement of Values" and "Listing of Vehicle & Art" provided by Cathedral City Staff on May 11, 2022. Existing Service population comprises of the 51,840 Residents and 9,934 Workers (w orkers w eighted at 0.37 based on a 45 hour w ork w eek).References: 32/162
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 15 GENERAL GOVERNMENT FACILITIES FEEPROPOSED FEELand UseCost Per Resident / Worker DensitySubtotal FeeAdministration Fee Total FeeAverage Unit Size (SF) Fee/SFResidential (per Unit)(per Unit)(per Unit)Single Family 828.15$ 2.85 2,360.23$ 118.01$ 2,478.24$ 2,000 1.24$ Multi Family 828.15$ 2.51 2,078.66$ 103.93$ 2,182.59$ 1,250 1.75$ Non-Residential 2(per 1,000 SF)(per 1,000 SF)(per 1,000 SF)Commercial 306.42$ 1.82 557.68$ 27.88$ 585.56$ Office 306.42$ 4.00 1,225.66$ 61.28$ 1,286.94$ Industrial 306.42$ 0.40 122.57$ 6.13$ 128.70$ Notes: 12Non-residential density based upon USGBC LEED BD+C: New Construction | v4 - Default Occupancy Counts.An administrative fee of 5% is included in the fees show n 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 References: 34/164
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 16 FIRE FEEEXISTING LEVEL OF SERVICE
Description ValueExisting FacilitiesFire Facilities1 19,533,159.00$ Vehicles & Equipment25,950,719.47$ Subtotal Fire Facilities 25,483,878.47$ Existing Service Population355,933 Total Existing Level of Service per Resident 455.61$ Total Existing Level of Service per Worker 168.58$ Notes: 1 Building values derived from the Cathedral City Statement of Values dated March 29, 2022 provided by Cathedral City Staff on May 11, 2022. 2 Vehicle & equipment values derived from the Cathedral City Listing of Vehicles & Art provided by Cathedral City Staff on May 11, 2022. 3Source: City of Cathedral City Statement of Values and Listing of Vehicles & Art. Existing Service population comprises of the 51,840 Residents and 9,934 Workers (w orkers w eighted at 0.37 based on a 45 hour w ork w eek).References: 39/169
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 17 FIRE FACILITIES FEEPROPOSED FEELand UseCost Per Resident / Worker DensitySubtotal FeeAdministration FeeTotal FeeAverage Unit Size (SF) Fee/SFResidential (per Unit)(per Unit)(per Unit)Single Family 455.61$ 2.85 1,298.49$ 64.92$ 1,363.41$ 2,000 0.68$ Multi Family 455.61$ 2.51 1,143.58$ 57.18$ 1,200.76$ 1,250 0.96$ Non-Residential 2(per 1,000 SF)(per 1,000 SF)(per 1,000 SF)Commercial 168.58$ 1.82 306.82$ 15.34$ 322.16$ Office 168.58$ 4.00 674.32$ 33.72$ 708.04$ Industrial 168.58$ 0.40 67.43$ 3.37$ 70.80$ Notes: 12Source: City of Cathedral City Statement of Values and Listing of Vehicles & Art. An administrative fee of 5% is included in the fees show n 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.Workers are w eighted at 0.37 based on a 45 hour w ork w eek relative to a resident's time of 123 hours (168 hours per w eek less 45 w ork hours).References: 40/170
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 18 POLICE FEEEXISTING LEVEL OF SERVICE
Description ValueExisting FacilitiesPolice Facilities1 13,740,020.72$ Vehicles & Equipment23,618,253.13$ Subtotal Police Facilities 17,358,273.85$ Existing Service Population355,933 Total Existing Level of Service per Resident 310.34$ Total Existing Level of Service per Worker 114.83$ Notes: 1 Building values derived from the Cathedral City Statement of Values dated March 29, 2022 provided by Cathedral City Staff on May 11, 2022. 2 Vehicle & equipment values derived from the Cathedral City Listing of Vehicles & Art provided by Cathedral City Staff on May 11, 2022. 3Source: City of Cathedral City Statement of Values and Listing of Vehicles & Art. Existing Service population comprises of the 51,840 Residents and 9,934 Workers (w orkers w eighted at 0.37 based on a 45 hour w ork w eek).References: 45/175
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 19 POLICE FACILITIES FEEPROPOSED FEELand UseCost Per Resident / Worker Density Subtotal FeeAdministration Fee1Total FeeAverage Unit Size (SF) Fee/SFResidential (per Unit)(per Unit)(per Unit)Single Family 310.34$ 2.85 884.46$ 44.22$ 928.68$ 2,000 0.46$ Multi Family 310.34$ 2.51 778.95$ 38.95$ 817.90$ 1,250 0.65$ Non-Residential 2(per 1,000 SF)(per 1,000 SF)(per 1,000 SF)Commercial 114.83$ 1.82 208.98$ 10.45$ 219.43$ Office 114.83$ 4.00 459.30$ 22.97$ 482.27$ Industrial 114.83$ 0.40 45.93$ 2.30$ 48.23$ Notes: 12Source: City of Cathedral City Statement of Values and Listing of Vehicles & Art. An administrative fee of 5% is included in the fees show n 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.Workers are w eighted at 0.37 based on a 45 hour w ork w eek relative to a resident's time of 123 hours (168 hours per w eek less 45 w ork hours).References: 46/176
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 20 PROPOSED FEE COMPARISON TO EXISTING (SOUTH OF I-10) -RESIDENTIAL (PER SQUARE FOOT) Single-Family Unit 1,782 SF plus 518 SF Garage Total Fee per Unit (example project)Existing1Proposed% Change between Proposed and Existing$2,300 $11,396 395%1) Existing park fee is $0 for this project. Multi-Family Apartment 8 Total Units (7,584 SF)Total Fees (example project)Existing1Proposed% Change between Proposed and Existing$16,450 $66,103 302%1) Existing park fee is $0 for this project.
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 21 PROPOSED FEE COMPARISON TO EXISTING (SOUTH OF I-10) -NON-RESIDENTIAL (PER 1,000 SQUARE FEET) Park Fee excluded in chart comparison.
Retail/Restaurant 2,800 SF with 500 SF Patio Total Fee per Unit (example project)Existing1Proposed% Change between Proposed and Existing$1,423 $9,169 544%
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 22 CoachellaRancho MirageDesert Hot SpringsIndioCathedral CityYYYYYTransportation/Roads/Traffic/CirculationYYYYYParks & RecreationYYYYYGovt Facilities/Public BuildingsYYYYPoliceYYYYYFireYYStorm DrainageYGeneral FacilitiesYTraffic SignalsYAquatic CenterYLibraryYLow Income Housing MitigationYBus ConnectionYSewer ConnectionYWater Connection DIFS CHARGED BY CITYCOMPARISONFee comparison excludes sewer and water connection fees
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 23 $0$1$2$3$4$5$6$7$8$9$10$11Cathedral City Indio Desert Hot Springs Rancho Mirage CoachellaSingle Family Multi Family
Condominium/Mobile HomeNEIGHBORING CITY COMPARISON TO PROPOSED FEERESIDENTIAL (FEE PER SQUARE FOOT)
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 24 $6.39 $6.81 $6.69 $4.88 $9.98 $0$1$2$3$4$5$6$7$8$9$10Cathedral City Indio Desert Hot Springs Rancho Mirage CoachellaCathedral CityIndioDesert Hot SpringsRancho MirageCoachellaAverage: $6.95NEIGHBORING CITY COMPARISONRESIDENTIAL (SINGLE FAMIL Y – PER SQUARE FOOT)
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 25 $8.72 $9.32 $8.14 $5.05 $11.22 $0$1$2$3$4$5$6$7$8$9$10$11$12Cathedral City Indio Desert Hot Springs Rancho Mirage CoachellaCathedral CityIndioDesert Hot SpringsRancho MirageCoachellaAverage: $8.49NEIGHBORING CITY COMPARISONRESIDENTIAL (MULTI FAMIL Y – PER SQUARE FOOT)
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 26 $0$2$4$6$8$10$12$14$16Cathedral City Indio Desert Hot Springs Rancho Mirage CoachellaOffice Commercial
IndustrialNEIGHBORING CITY COMPARISON TO PROPOSED FEENON-RESIDENTIAL (FEE PER SF)
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 27 $4.28 $7.34 $9.59 $3.75 $6.33 $0$1$2$3$4$5$6$7$8$9$10Cathedral City Indio Desert Hot Springs Rancho Mirage CoachellaCathedral CityIndioDesert Hot SpringsRancho MirageCoachellaAverage: $6.26NEIGHBORING CITY COMPARISONOFFICE (PER SF)
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 28 $3.27 $16.23 $9.59 $8.68 $5.29 $0$2$4$6$8$10$12$14$16$18Cathedral City Indio Desert Hot Springs Rancho Mirage CoachellaCathedral CityIndioDesert Hot SpringsRancho MirageCoachellaAverage: $8.61NEIGHBORING CITY COMPARISONCOMMERCIAL (PER SF)
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 29 $0.52 $3.34 $4.87 $1.77 $4.05 $0$1$1$2$2$3$3$4$4$5$5Cathedral City Indio Desert Hot Springs Rancho Mirage CoachellaCathedral CityIndioDesert Hot SpringsRancho MirageCoachellaAverage: $2.91NEIGHBORING CITY COMPARISONINDUSTRIAL (PER SF)
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 30 DEVELOPMENT IMPACT FEE PROGRAM POLICY CONSIDERATIONS Adopt Maximum Justifiable Fee Adopt Maximum Fee with a Phased in Approach50% Year 1, 75% Year 2, Full Fee Year 31/3 Year 1, 2/3 Year 2, Full Fee Year 3Other options Note that if lower fee is collected, full amount to fund infrastructure and facilities may not be collected General fund contributions and grants may be used to make up difference
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 31 OCTOBER 2023AUGUST 2023JUNE 2023•Fees go into effect 60 days after adoptionDEVELOPMENT IMPACT FEE PROGRAM FEE ADOPTION SCHEDULE •City Council Study Session•Public Hearing•Fees adopted
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee 32 E-mail: [email protected]: 916.306.5704 DEVELOPMENT IMPACT FEE PROGRAM THANK YOU QUESTIONS?
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Attachment: 2023.06.28 Cathedral City Study Session DIF Presentation Final (3848 : AB 1600 Fee
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Attachment: 2023-07-07 DVBA AB 1600 DIF Study Cathedral City Comments (3848 : AB 1600 Fee Justification Nexus Study)
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Attachment: 2023-07-07 DVBA AB 1600 DIF Study Cathedral City Comments (3848 : AB 1600 Fee Justification Nexus Study)
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Attachment: 2023-07-07 DVBA AB 1600 DIF Study Cathedral City Comments (3848 : AB 1600 Fee Justification Nexus Study)
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Attachment: 2023-07-07 DVBA AB 1600 DIF Study Cathedral City Comments (3848 : AB 1600 Fee Justification Nexus Study)
Cathedral City Page 1 of 2 Printed on 8/3/2023
Staff Report
City Council
Item No. 3.B
Meeting Date: August 9, 2023
From: George Crum, Police Chief
Title: East PACT Team Presentation
City Council
RECOMMENDATION:
This is for presentation and information only.
BACKGROUND:
The implementation of AB 109 in 2011 , resulted in specified convicted felons and parolees, who were previously monitored and supervised by State Parole, to be supervised by the Riverside County Probation Department. On August 30, 2011, the Community Corrections Partnership Executive Committee (CCPEC) of Riverside County voted unanimously on the need for a county -wide law enforcement component to this supervision. Each participating law enforcement agency in Riverside County , formed the infrastructure for this critical enfo rcement component and created three Post-release Accountability and Compliance Team s (PACT). Currently three PACT teams exist in Riverside County with the East PACT team being housed at the Cathedral City Police Department. These three teams are a county -wide, multi - jurisdictional team comprised of members from each participating organization.
DISCUSSION:
The implementation of AB 109, The Public Safety Realignment Act of 2011, resulted in specified convicted felons and parolees, who were previously monito red by State Parole, to be supervised by the Riverside County Probation Department. On August 30, 2011, the Community Corrections Partnership Executive Committee (CCPEC) of Riverside County voted unanimously on the need for a county -wide law enforcement component to this supervision. The Riverside County Sheriff’s Department, Riverside County District Attorney’s Office, Riverside County Probation and the twelve municipal law enforcement agencies in Riverside County, including the Cathedral City Police Department, have built the infrastructure for this critical enforcement component. The Post-release Accountability and Compliance Team (PACT) is a county -wide, multi - jurisdictional team comprised of members from each of these organizations.
Under the guidance of the Association of Riverside County Chiefs of Police and Sheriff (ARCCOPS), Riverside County formed three (3) separate “regional” teams to address the impacts of the “realignment” of the state’s corrections system through a partnership
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with the Rivers ide County Probation Department. The regional teams are identified as WEST-PACT, CENTRAL -PACT and EAST -PACT. Funding to reimburse the cost for participating agencies placing employees on a team comes from the CCPEC funds distributed by Probation.
The Coachella Valley is serviced by the EAST -PACT Team. The EAST -PACT team is comprised of the following agencies: Blythe PD, Cathedral City PD, Desert Hot Springs PD, Indio PD, Riverside County Sheriff’s Dept, and Riverside County Probation.
The Cathedral C ity Police Department has been a member of the Post -release Accountability and Compliance Team (PACT) since its inception in 2011. The East PACT team is currently supervised by a Cathedral City Police Department Sergeant.
The MOU with Riverside County Prob ation allows for the reimbursement of supplies, equipment, vehicles and salary up to a specified limit.
The EAST -PACT Team is housed and operated out of the Cathedral City Police Department, providing Cathedral City with a force -multiplier for our communi ty and the Coachella Valley. Currently, the East PACT Team consists of officers from Blythe PD, Indio PD, Desert Hot Springs PD, Cathedral City PD, Riverside County Probation and Riverside County Sheriff’s Department. Currently. Cathedral City has a Sergea nt and a Detective assigned to the team.
The East PACT team has proven to be a vital resource for Cathedral City and surrounding jurisdictions. In 2022, East PACT conducted 947 searches of people on probation or parole and made 207 total arrests. The PACT team seized 31 firearms and recovered 13 stolen vehicles. Year to date in 2023, East PACT has conducted 520 searches of people on probation or parole and made 90 total arrests. The PACT team seized 17 firearms and recovered 1 stolen vehicle.
FISCAL IMPACT:
None
FIVE-YEAR STRATEGIC PLAN:
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Staff Report
City Council
Item No. 3.C
Meeting Date: August 9, 2023
From: Tracey Hermosillo, City Clerk
Title: Discussion on a Policy Authorizing the Acceptance of Electronic or Digital Signatures in Lieu of a written "Wet" Signature
RECOMMENDATION:
This item is for discussion and direction only, there will be no formal action taken.
BACKGROUND:
Currently electronic signatures are not an authorized format for City documents and all documents require a “wet signature”. This practice often slow s down the processing of documents and has the potential to delay projects as well.
DISCUSSION:
Electronic signatures are an effective and efficient way to conduct official business, and are widely used in a variety of industries, including local and state government.
The State of California has authorized the use of digital signatures on most public documents. In 1995, the Legislature adopted Government Code section 16.5, authorizing public entities to accept a “digital signature” instead of a manual si gnature.
Under Government Code section 16.5, subdivision (d), a “digital signature” means “an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature.”
In 1999, Califor nia became the first state to adopt a version of the federal Uniform Electronic Transactions Act (“UETA”), codified as Civil Code section 1633.1 – 1633.17, granting “electronic signatures” the same legal effect as manual signatures for most “transactions.” For purposes of the UETA , a digital signature is a type of electronic signature. Unlike an electronic signature, a digital signature is subject to rigorous verification standards adopted by the California Secretary of State, codified as California Code of Regulations, title 2, sections 22000-22005.
The following is a list of suggested forms that would be authorized to accept electronic or digital signatures:
• Contracts for goods or services.
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• Contracts approved by resolution or minute order of the City Council. • Settlement agreement contracts approved by the City Council. • Contracts concerning the administrative business of the city, which the City Manager and his /her designee has control over pursuant to employment agreement, personnel resolution, or City municipal code or ordinance. • As approved by City Council, letters / documents authorized by to be signed by the Mayor.
• Routine personnel transactions.
• Reimbursement forms.
• Special Event Permit Applications.
• Request for Public Records.
• All Fair Political Practice Commission forms required to be filed in the City Clerk’s Office.
• Other forms as approved by the City Manager or his/her designee.
The proposed policy will not supersede laws that specifically require a handwritten signature, nor will it limit th e right or option of the City to conduct the transaction on paper or in non-electronic form.
The following are examples of forms where the use of Electronic or Digital Signatures would be prohibited:
• Transactions for which electronic signatures are not e nforceable by law and/or transactions requiring a handwritten signature.
• Transactions that require a person to sign in the presence of a notary.
The benefits of having a policy in place to accept electronic or digital signatures are to increase productivity and ensure convenient, timely and appropriate access to information by using electronic signature technology to collect and preserve signatures on documents quickly, securely, and efficiently.
Staff has provided a draft Policy to help facilitate discus sion and is looking for direction on whether or not it is Council’s desire to direct staff to move forward with an administrative policy authorizing the acceptance of electronic or digital signatures.
FISCAL IMPACT:
There is no fiscal Impact with this item.
FIVE-YEAR STRATEGIC PLAN:
Goal D – Innovation - Action D-4
ATTACHMENTS:
HR- AP Electronic Signature Use Policy
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ELECTRONIC SIGNATURE USE POLICY
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CITY OF CATHEDRAL CITY | ADMINISTRATIVE POLICY HR-AP
TOPIC ELECTRONIC SIGNATURE USE POLICY
Approved by:
_________________________________
Charles McClendon, City Manager
Distributed by Original Date Revised
Human Resources
August 9, 2023
PURPOSE:
The City of Cathedral City Electronic Signature Use Policy shall be used to increase productivity and ensure convenient, timely and appropriate access to information by using electronic signature technology to collect and preserve signatures on documents quickly, securely, and efficiently.
This Policy establishes when electronic signature technology may replace a hand -written signature, with the goal of encouraging the use of paperless, electronic documents whenever appropriate and allowed by law. This Policy authorizes the City to accept an approved electronic signature, in lieu of a written signature, on a document in which a signature is required or used, which complies with the requirements of California Government Code Section 16.5 and this Policy.
While the use of electronic signatures is suggested and encouraged, this Policy does not require any Department to use electronic signatures; nor can the City mandate that any third party signing a document use electronic signature.
This Policy applies to documents requiring a signature of any person where the signature is intended to show authorship, approval, authorization, or certification, as allowed by law. It is the Policy of the City to encourage the use of electronic signatures in all internal and external activities, documents, and transactions where it is operationally feasible to do so, where existing technology permits, and where it is otherwise appropriate based on the Department's preferences. In such situations, affixing an electronic signature to the document in a manner consistent with this Policy shall satisfy the City's requirements for signing a document. As used in this Policy, the term "signature" includes using initials on a document instead of a signature.
Each Department Director has discretion to decide whether to permit the use of electronic signatures.
Departments should work with the City Attorney to determine whether applicable laws permit an electronic signature to be used. In addition, each Agency/Department that opts to use electronic signatures must adopt/amend their business practices to support the requirements of this Policy.
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INTRODUCTION:
In 1995, the California Legislature passed Government Code Section 16.5, authorizing public entities to accept digital signatures if they comply with stringent verification requirements.
In 1999, California adopted a version of the Uniform Electronic Transactions Act ("UETA")(California Civil Code Sections 1633.1 to 1633.17), providing that electronic signatures would have the same legal effect as a wet or manual signature.
Not every state enacted UETA and, therefore, in 2000, the Federal Government enacted the Electronic Signatures in Global and National Commerce Act (ESIGN). ESIGN mandated the same treatment of electronic signatures in interstate or foreign commerce. (15 USC§§ 7001 et seq.) The City of Cathedral City (the "City") seeks to implement guidelines for the use and acceptance of electronic signatures as well as for the authentication, maintenance, and preservation of electronically signed records, electronic records, and other electronic information submitted to and accepted by the City. Use of electronic signatures will move the City another step closer to instantaneous communication with the public by further improving the manner and speed with which the City communicates and conducts business.
While the use of electronic information will continue to evolve, the City has identified acceptable forms of secure electronic signatures and electronically signed records and has developed this Electronic Signature Use Policy (this "Policy") to encourage their use and acceptance.
POLICY:
A. Policy Statement . This Policy authorizes the use of electronic signatures on City documents while allowing the City to strike a balance between the flexibility desired in transactions and the need for signature security and integrity. Specifically, this Policy establishes that electronic signatures shall be valid and effective on City records and documents so long as certain guidelines regarding the security and integrity of electronic signatures are met; authorizes the City Manager (or designee) to determine the particular technologies or vendors that presumptively satisfy the guidelines; and authorizes the City Manager to determine the level of security required for various types of electronic records or documents.
Staff should consult with the City Attorney to determine whether applicable laws permit an electronic signature to be used before proceeding if not addressed in the list of documents set forth below. This Policy is designed to supplement the City's current records management and retention policies.
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B. Definitions.
1. An “electronic record” is defined by California’s Uniform Electronic Transactions Act (“UETA”) (Cal. Civil Code § 1633.1 et seq.) as “a record created, generated, sent, communicated, received, or stored by electronic means.” An electronic record generally contains information or a data file that was created and stored in digitized form through the use of computers, machines, and software applications. The format of an electronic record does not change the fact that it is a record subject to applicable public records laws, but its electronic form and its dependence on machines for creation and reference do change the way these records must be stored and managed.
2. An "electronic signature" is fundamentally a legal concept as defined by both t he federal Electronic Signatures in Global and National Commerce Act and the UETA, an electronic signature is “an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.” It is the electronic equivalent of a handwritten, wet, or manual signature on paper, and therefore must have certain characteristics for evidentiary purposes.
3. An “electronically signed record” is a record, file, or d ocument that has been electronically signed by means of an electronic signature and that is related to the conduct of the City’s official business.
C. General Rules for Electronic Signatures.
1. Compliance with Policy. This Electronic Signature Policy applies to all City Departments and governs all uses of electronic signatures and electronically signed records or documents related to the conduct of the City’s official business. City staff will only accept electronic signatures that comply with the requirements of this Policy.
2. General Authorization. In any document accepted by the City in which a signature is required or used, the City Manager may authorize the use of an electronic signature, so long as it complies with the requirements of this Policy.
3. Use Optional. Pursuant to California law, the use of electronic signatures by individuals or entities that wish to conduct business with the City remains optional. This Policy neither limits the right or option to conduct the transaction on paper or in non-electronic form, nor the right to have documents provided or made available on paper.
4. Consent Required. All parties that wish to use electronic signatures shall agree to follow this Policy, shall provide written or electronic consent as to the use of electronic signatures, and shall agree to indemnify the City against any liability associated with transmitting an electronic signature or an
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electronically signed record by electronic transmission. Consents may be kept on file with the City prior to the s ending party transmitting any records or signatures electronically or may be included in the electronic document as evidence that the signer has accepted this Policy.
5. Characteristics of a Valid Electronic Signature. The use of an electronic signature shall be valid and shall have the same force and effect as the use of a handwritten, wet, or manual signature if:
a. The signature is capable of verification (through the electronic document's metadata); b. The signature is under the sole control of the person using it; and c. The signature is linked to the data contained in the electronically signed record in such a manner that it is readily ascertainable if the data is changed after the signature is applied.
6. Signature Required by City Policy; State or Federal Law. a. Where a City policy requires that any electronic document, photo, record, or other related item have the signature of a responsible person, that requirement is met when the item has associated with it an electronic signature meeting the requirements of this Policy. b. Where California or federal law requires that any electronic document, photo, record, or other related item have the signature of a responsible person, that requirement is met when the item has associated with it an electronic si gnature meeting the requirements of this Policy and using a signature method, which complies with California law or federal law.
7. Acceptable Technologies. The City Manager, with the recommendation of the General Counsel shall determine acceptable electro nic signature technologies and vendors under this Policy, and consistent with industry best practices, to ensure that security and integrity of electronic records, electronic data, and electronic signatures. The City Manager, with recommendation of the Cit y Attorney and Director of Information Technology, shall further determine the records or documents for which the City will accept electronic signatures.
8. Penalty of Perjury. This Policy shall comport with California Civil Code section 1633.11(b) which states, “In a transaction, if a law requires that a statement be signed under penalty of perjury, the requirement is satisfied with respect to an electronic signature, if an electronic record includes, in addition to the electronic signature, all of the information as to which the declaration pertains together with a declaration under penalty of perjury by the person who submits the electronic signature that the information is true and correct."
9. Further Acts. Nothing in this Policy shall prevent the City from adopting additional guidelines or taking
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further actions to implement this Policy or to add other permissible forms of electronic signatures to this Policy.
10. Revocation of Technology. In the event that is determined that an approved electronic signature method or technology is no longer trustworthy or secure, the City Manager shall revoke the approval of such electronic signature method. If there is continued significance for electronic signatures that employed the revoked method, the City Manager will take steps to ensure that any valid records signed with the revoked method are signed again either with a handwritten, wet signature or with an approved electronic signature method.
D. Intake process; Validation Process.
1. Initial Evaluation. City staff shall determine which section(s) of this Policy apply to any electronic signature or electronically signed record.
2. Obtain Consent. City staff shall require all sending parties to provide a written consent agreeing to the City’s Electronic Signature Use Policy.
This consent may be kept on file with the City prior to the sending party transmitting any records or signatures electronically or may be included on the electronic document as evidence that the signed has accepted this Policy.
3. Identify the Sending Party. City staff shall develop rules and standard operating procedures to identify the sending party’s identity, address, and contact information to accompany an electronic signature, record, document, or transmission.
4. Multiple Parties. City staff shall determine whether multiple signatures are required, and if so, each signature shall independently comply with the requirements of this Policy.
E. Electronically Transmitted Documents; Confirmation Process.
1. Initial Evaluation. City staff shall determine whether a particular document needs to be authenticated for recording purposed and whether confirmation of that document needs to be provided.
2. Acceptable Forms. The following is a list of approved forms for electronic or digital signatures, but not limited to:
a. Contracts for goods and services.
b. Contracts approved by resolution or minute order of the City Council. c. Settlement agreement contracts approved by the City Council.
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d. Contracts concerning the administrative business o f the City which the City Manager and his/her designee has control over pursuant to employment agreement, personnel resolution, or City municipal code or ordinance.
e. As approved by City Council, letters/documents authorized by to be signed by the Mayor. f. Routine personnel transactions.
g. Reimbursement forms.
h. Special Event Permit Applications.
i. Request for Public Records.
j. Credit Card Authorization.
k. All Fair Political Practice Commission forms required to be filed in the City Clerk’s Office. l. Other forms as approved by the City Manager or his/her designee.
3. Characteristics of Trustworthiness. Reliability, authenticity, integrity, and usability are characteristics of trustworthy records from a records management perspective. Transactions that are critical to the City’s business may require greater assurances that they are reliable, authentic, maintain integrity, and are usable than other transactions of less critical importance. a. Reliability. A reliable record contains content that can be trusted as a full and accurate representation of the transactions, activities, or facts to which it attests, and can be depended upon in the course of subsequent transactions or activities.
b. Authenticity. An authentic record is one that is proven to be what it purports to be, and which has been created or sent by the person who purports to have created or sent it. c. Integrity. The integrity of a record refers to the record's completeness and total lack of unauthorized alterations.
d. Usability. A usable record is one, which can be located, retrieved, presented, interpreted, and utilized for its intended purpose or objective.
4. Prohibited Use. Use of electronic or digital signatures is prohibited, but not limited, to the following situations:
a. Transactions for which electronic signatures are not enforceable by law and/or transactions requiring a handwritten signature.
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b. Transactions that require a person to sign in the presence of a notary.
5. Confirmation of Receipt. From the initial signature of a document to the completion of all required signatures (execution), the document shall be accessible to all signatories to see its status in the workflow.
Upon final execution of a contract docume nt, all parties to the contract (as designated by the Contract Administrator who initiates the signature workflow) will be notified electronically and such notification will be recorded as part of the document's metadata.
6. Confirmation of Filing. The City must also dispatch to the sending party an electronic confirmation that the record or document has been filed and, if applicable, added to the existing record on file.
7. Filer Responsible for Verification. In the absence of the City's confirmations of receipt and filing, there shall be no presumption that the City received and filed the electronically submitted record or document.
The sending party is responsible for verifying that the City received and filed a document and for obtaining confirmations of receipt and filing.
8. Notice of Rejection of Document for Filing. If City staff do not file a record or document because it does not comply with applicable filing requirements or because the required filing fee has not been paid, the City must promptly notify the sending party of the rejection of the record or document for filing.
9. Documents Filed After Close of Business. Records or documents transmitted electronically after the close of the City's business hours shall be deemed to have been filed on the next business day.
10. Delayed Delivery. If a technical problem with the City's software or electronic filing system prevents the City from accepting an electronic submission during its regular filing hours on a particular City business day, and the sending party can demonstrate that he or she attempted to electronically file the document on that particular City business then the City shall deem the document to be filed on that day.
11. Endorsement by City. The electronic signature of the City Clerk shall be considered endorsement by the City and shall be so indicated on the signature block of a document. This endorsement shall have the same force and effect as a manually affixed endorsement stamp with the signature and initials of the City Clerk.
F. Sanctions. Any individual or party that makes inappropriate, illegal, or fraudulent use, including the use of another person’s digital signature or electronic approval, of electronic signatures or electronic records in violation of the City’s Electronic Signature Use Policy is subject to sanctions up to and including dismissal, suspension, and criminal prosecution as specified in published City policies and/or state or federal law, whether or not they are directly referenced in this Policy. All inappropriate, illegal, or fraudulent uses of any electronic means of transmission is punishable through discipline, up to and
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including termination, and prosecuted to the fullest extent of the law, including the recovery of attorneys’ fees and administrative costs.
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