Impact Fee Nexus Study
October 23, 2023
Alison Lechowicz
Project Manager
CITY OF FORT BRAGG
Impact Fee Background
Impact fees are one-time fees paid by new development when building permits are issued by the City Assembly Bill 602 requires impact fee updates every eight years L&T evaluated a wide range of potential fees and the City can determine if they are appropriate for the community Fees are intended to recover the capital costs of public facilities needed to accommodate growth Fees cannot recover costs that were funded by other revenue sources such as grants or donations The City of Fort Bragg has a lower tax rate than neighboring cities and thus does not the same level of tax revenues to offset the cost of facilities 2 Impact Fee Background Continued
Fees cannot be used to pay operating costs or general repair and maintenance projects that are not related to expanded capacity Fees must be proportional to the capacity used by new customers (i.e. nexus between costs and benefits received) and are intended to mitigate impacts of growth on existing residents Impact fees are not paid by current residents. However, if expansion costs are not funded by growth, existing residents could be burdened with the costs and impacts of new development 3 Impact Fee Categories
Current Fee Categories
Fee Categories Reviewed via the Impact Fee Study
Water
Water
Sewer
Sewer
Storm Drainage
Storm Drainage
Police
Fire
CV Starr
Parks & Recreation
Traffic
Civic Facilities
4 Current Fee Categories
Fee Categories Reviewed via the Impact Fee Study
Water
Water
Sewer
Sewer
Storm Drainage
Storm Drainage
Police
Fire
CV Starr
Parks & Recreation
Traffic
Civic Facilities
Recommended categories based on feedback from the Finance Committee
Impact Fee Methodology
5 Planning Horizon and Buildout
Estimated growth over 30 years
1,200 population growth (residents)
About 400 new jobs (employees)
429,000 sq ft of commercial development
60,000 sq ft of industrial development
150 new hotel rooms
Fees are scaled based on impact to facilities
Ex. New employees have low impact on civic facilities and parks but high impact on police services Single family or multi-family dwellings – number of people per home Commercial or industrial development – number of employees per 1,000 sq ft Lodging – number of employees per room
6 Costs of Facilities
7 Water Impact Fee
Estimated $14.7M value of existing assets
Estimated $24.1M of expansion costs allocated to growth Capacity is assigned to growth using water demand in gallons Existing demand is about 560,000 gallons per day
Source water available is 1,700,000 gallons per day
33% existing and 67% growth allocation
Major Projects:
Raw water lines and reservoirs (67% allocated to growth) Desalination – ocean intake (67% allocated to growth)
8 Water Impact Fee
Current fee is $4,631 per EDU (equivalent dwelling unit) Component
Proposed Fee
Buy-in fee per EDU
$951.50
Expansion fee per EDU
$2,328.70
Total fee per EDU
$3,280.20
Buy-in fee ($/gpd)
$8.65
Expansion fee ($/gpd)
$21.17
Total fee ($/gpd)
$29.82
9 Sewer Impact Fee
10 Estimated $20M value of existing assets (RCNLD)
A portion of the fee will recover costs for debt service for the City’s 2018 Wastewater Treatment Plant loan Estimated $0.7M of expansion costs allocated to growth
Capacity is assigned to growth using flow in gallons
Existing flow is about 490,000 gallons per day
Sewer treatment plant capacity is 800,000 gallons per day 39% existing and 61% growth allocation
Major Projects:
Bio Solids dryer (39% allocated to growth)
Pudding Creek sewer main relocation (39% allocated to growth)
Sewer Impact Fee
Current fee is $3,640 per EDU (equivalent dwelling unit) Component
Proposed Fee
Buy-in fee per EDU
$2,428.88
Expansion fee per EDU
$211.46
Debt service fee per EDU
$275.48
Total fee per EDU
$2,915.82
Buy-in fee ($/gpd – gallons per day)
$25.04
Expansion fee ($/gpd)
$2.18
Debt Service fee ($/gpd)
$2.84
Total fee ($/gpd)
$30.06
11 Storm Drainage Impact Fee
12 Estimated $705,000 value of existing assets
Estimated $908,000 of expansion costs allocated to growth based on estimated acres to be developed Projects Included:
Trash capture devices (16.3% allocated to growth)
All development driven projects recommended in the City’s Storm Drain Master Plan by Winzler & Kelly Consulting Engineers in 2004 (16.3% allocated to growth) Capacity is assigned using impervious area
Fee for each land use classification depends on estimated runoff coefficient
Storm Drainage Impact Fee
Land Use Classification
Current Fee per Sq Ft
Proposed Fee per Sq Ft
RVH, RM, RM
High & Medium Density Residential
$0.15013
$0.84258
RL
Low Density Residential
$0.37054
$0.66203
RS, RR
Suburban & Rural Residential
$0.37054
$0.48148
CN, CO, CBD, CG, CH
Commercial
$0.14623
$1.02314
IH, IL, HD, IT
Industrial, Timber Resources, Harbor District
$0.14623
$1.02314
PR
Parks and Recreation
$0.14361
$0.36111
PF
Public Facilities & Services
$0.05068
$0.12037
OS
Open Space
$0.21541
$0.24074
13 Water, Sewer, and Storm Survey
14 Police Facilities Impact Fee
15 Estimated $2.5M value of existing assets
Estimated $198,000 of expansion costs allocated to growth Major Projects:
Vehicle Replacement Plan (14.4% allocated to growth)
EV Charging station (14.4% allocated to growth)
Capacity is assigned using number of residents or employees; weighted based on number of service calls to residential vs. commercial locations Category
Proposed Fee
Fee Basis
Single family (SF)
$539.49
per SF home
Multi-family (MF)
$482.10
per MF home
Commercial
$2,218.94
per 1,000 sqft
Industrial
$855.58
per 1,000 sqft
Lodging
$605.17
per room
Fire Facilities Impact Fee
Estimated $2.0M value of existing assets
No estimated expansion costs allocated to growth (all projected capital improvements are grant funded) Category
Proposed Fee
Fee Basis
Single family residential
$389.69
per dwelling unit
Multi-family residential
$279.76
per dwelling unit
Commercial/Industrial
$300.06
per 1,000 sqft
16 CV Starr Impact Fee
17 No proposed buy-in component of fee since purchase of the CV Starr Center was funded through fundraising and donations Estimated $364,000 of expansion costs allocated to growth Planned upgrades to the CV Starr Center including the UV disinfection system replacement, HVAC air intake redesign, and roof repair (14.4% allocated to growth) Capacity is assigned using number of residents or employees; weighted based on number of working hours vs. non-working hours during the week Category
Proposed Fee
Fee Basis
Single family (SF)
$646.23
per SF home
Multi-family (MF)
$577.48
per MF home
Commercial
$271.95
per 1,000 sqft
Industrial
$104.86
per 1,000 sqft
Lodging
$74.17
per room
Summary of Fees per SF Home
18 Category
Existing Fee
Proposed Fee
Status
Water
$4,631
$3,280
Existing category
Sewer
$3,640
$2,916
Existing category
Storm Drainage
$615
$1,099
Existing category
Police
$539
New category
Fire
$390
New category
CV Starr
$646
New category
Total
$8,886
$8,870
Other potential (not recommended) fee categories: civic, traffic, parks
Civic Facilities Impact Fee
19 Recovers the cost of the City’s municipal facilities Estimated $10.2M value of existing assets
Estimated $2.3M of expansion costs allocated to growth
Major Projects:
Broadband – Fiber (14.4% allocated to growth)
Rehabilitation and improvements to City Hall, Guest House, Town Hall, and Corporation Yard (14.4% allocated to growth) Capacity is assigned using number of residents or employees; weighted based on number of working hours vs. non-working hours during the week
Civic Facilities Impact Fee
Category
Proposed Fee
Fee Basis
Single family (SF)
$6,595.63
per SF home
Multi-family (MF)
$5,893.97
per MF home
Commercial
$2,775.50
per 1,000 sqft
Industrial
$1,070.18
per 1,000 sqft
Lodging
$756.96
per room
20 Parks & Recreation Impact Fee
21 Estimated $806,000 value of existing assets (RCNLD)
Does not include value of lands that were granted/donated Main assets are the Soldier's Point Coastal Trail and Bainbridge Park improvements Estimated $18,000 of expansion costs allocated to growth Projects Included:
Bathrooms and fencing at Noyo Headlands Park (14.4% allocated to growth) Parking lot rehabilitation at Pomo Bluffs Park (14.4% allocated to growth) Capacity is assigned using number of residents
Proposed to be charged to residential development only
Parks & Recreation Impact Fee
Component
Proposed Fee
Buy-in fee per resident
$96.53
Expansion fee per resident
$14.76
Total fee per resident
$111.29
Impact fee per SF home
$261.53
Impact fee per MF home
$233.71
22 Traffic Impact Fee
23 Estimated $20.3M value of existing assets
Estimated $1.2M of expansion costs allocated to growth
Major Projects:
Funding recommended to improve pavement network in the City’s Pavement Management Plan by Nichols Consulting Engineers in 2021 (4.5% allocated to growth) Capacity is assigned using number of daily vehicle trips by each customer category Category
Proposed Fee
Fee Basis
Single family (SF)
$1,860.49
per SF home
Multi-family (MF)
$1,144.04
per MF home
Commercial
$2,424.91
per 1,000 sqft
Industrial
$763.96
per 1,000 sqft
Lodging
$1,351.18
per room
Single Family Residential Fee Survey
Community
Water
Sewer
Storm Drain
Police
Fire
CV Starr
Parks
Civic
Traffic
Total
Eureka
$3,208
$3,423
$701
$7,332
Fortuna
$2,165
$4,445
$531
$1,310
$8,451
Fort Bragg (Proposed)
$3,280
$2,916
$1,099
$539
$390
$646
$8,870
Fort Bragg (Current)
$4,631
$3,640
$615
$8,886
Willits / Little Lake FD
$4,025
$7,840
$1,627
$13,492
Ukiah / Ukiah Valley SD
$1,833
$12,240
$14,073
Arcata
$7,429
$8,161
$199
$15,789
Fort Bragg (All categories)
$2,696
$3,462
$1,099
$539
$390
$646
$262
$6,596
$1,860
$17,550
Sonoma / Sonoma Valley County SD
$4,260
$17,739
$21,999
Clearlake
$7,500
$11,936
$1,660
$2,049
$23,145
Lakeport
$8,877
$16,309
$166
$1,660
$27,012
Cloverdale
$7,192
$11,160
$255
$1,502
$11,732
$5,727
$3,147
$40,715
Windsor
$4,695
$11,387
$3,758
$118
$2,905
$13,463
$1,626
$12,492
$50,444
Notes: For all fees calculated on a square footage basis, 1,660 sq ft is used to generate rates shown in the table. Water and wastewater impact fees are shown for the smallest meter size available. Some agencies shown in the table charge additional impact fees which are not shown in the table, including fees for affordable housing, schools, or other purposes. 24 Estimated Permit Fees for a Single Family Home
25 Single Family Residential Customer (1,660 sq ft home) Current
Proposed
Water and Sewer Impact Fees
$8,271
$6,196
Water and Sewer Connection Fees
$4,823
$4,823
Water and Sewer Permit & Inspection Fee
$255
$255
Storm Drain Impact Fee
$615
$1,099
New Recommended Development Impact Fees
$1,575
Other City Fees
$2,681
$2,681
Total Cost
$16,645
$16,629
Notes: Fees shown are based on a new single family residential development in a low-density residential zone with a building permit valuation of $250,000. “Other City Fees” category includes Business License Surcharge, Planning Department Building Permit Fee, Public Works Department Building Permit Fees, General Plan Maintenance Fee, and Construction and Demolition Deposit (refundable after construction).
Example Office
26 Fee Category
Current
Proposed
Water
$5,071
$3,877
Sewer
$5,460
$3,307
Storm Drain
$219
$1,535
Police
$3,328
Fire
$450
CV Starr
$408
Total Impact Fees
$10,750
$12,904
Assumed office space is 1,500 sq ft with 130 gallons per day of water demand and 110 gallons per day of sewer flow
Example Grocery Store
27 Fee Category
Current
Proposed
Water
$46,680
$38,766
Sewer
$50,669
$36,072
Storm Drain
$2,340
$16,370
Police
$35,503
Fire
$4,801
CV Starr
$4,351
Total Impact Fees
$99,689
$135,863
Assumed grocery store is 16,000 sq ft with 1,300 gallons per day of water use and 1,200 gallons per day of sewer flow
Example 30 Room Hotel
28 Fee Category
Current
Proposed
Water
$87,526
$59,640
Sewer
$95,004
$54,108
Storm Drain
$3,510
$24,555
Police
$18,155
Fire
$7,201
CV Starr
$2,225
Total Impact Fees
$186,039
$165,885
Assumed hotel is 24,000 sq ft with 2,000 gallons per day of water use and 1,800 gallons per day of sewer flow
Questions?
29