Development Impact Fee Study September 2019
City of Hanford Page 44
SECTION 11 - CIRCULATION FACILITIES
The following General Plan Objectives and Policies in the General Plan’s Chapter 4: Transportation & Circulation provide the foundation for the City's provisions of circulation infrastructure.
Policy T1: Coordination of Circulation and Land Use
Develop a circulation network that reinforces the desired land use pattern for Hanford, as identified in the land use element.
Policy T3: Circulation Map
Identify the locations of existing and future Highways, Major Arterials, Arterials, Collectors, and Minor Collectors with the Planned Area Boundary on the Circulation Map. Locations shown shall be fixed, with allowance for slight variation from the depicted alignments of new Collectors and Minor Collectors.
Policy T36: Traffic Impact Fees
Periodically review and update the traffic impact fee program to ensure new development contributes its fair share of funding for new street, intersection, and highway improvements.
11.1 - Methodology for Calculating Circulation Impact Fee Figure 11-1 identifies the future streets, intersections, and signals that will be needed to implement the circulation goals of the General Plan. Table 11-1 lists the identified improvements. Each of these improvements has an estimated cost which is summed to obtain an estimated total cost of new circulation infrastructure needed to support new growth. Table 11-2 lists typical land uses along with their corresponding land use found in the Institute of Traffic Engineers (ITE) Manual. Because some uses’ vehicle trips are more often a result what is called pass-by trip (i.e. getting fuel for the car while on the way to work), Table 11-3 estimates an adjustment factor to adjust the raw daily trip estimates. Table 11-4 makes this adjustment and provides a trip demand factor for each identified use. identifies most typical land uses and develops a trip demand factor for each land use.
Table 11-5 uses the estimated total future residential units and total future non-residential square footage to estimate the total future vehicle trips. Table 11-6 divides the total costs from Table 11-1 by the total trips from Table 11-5 to generate a cost per vehicle trip. Table 11-7 identifies the impact fee by multiplying the trip demand factor from Table 11-4 by the cost per vehicle trip in Table 11-
6. Based upon the discussion in Section 3.5, a separate table for the impact fees for downtown uses is shown in Table 11-8. Fee amounts vary by the type of units used.
11.2 - Circulation Infrastructure Impact Need and Cost
Figure 11-1 shows that General Plan Circulation Map and identifies the future streets, intersections, and signals that will be needed to implement the circulation goals of the General Plan. The General
Development Impact Fee Study September 2019
City of Hanford Page 45
Plan goals, policies, and resulting map are based upon the estimated future growth of the city up to 2035. Only improvements attributable to future growth were included. Table 11-1 lists the identified improvements along with one grade separation project, the 9th Avenue interchange project, and seven other Caltrans projects. Each of these improvements has an estimated cost which is summed to obtain an estimated total cost of new circulation infrastructure needed to support new growth.
Table 11-1
Traffic Circulation Costs
Item Count Unit Unit Cost Total
Facilities
Limited Arterial Roadway
Improvements 13.90 miles $1,579,717 $21,958,071
Arterial Roadway Improvments 36.31 miles $1,579,717 $57,359,536 Collector Roadway Improvments 15.74 miles $599,339 $9,433,591 Intersection Improvements 66 number $400,000 $26,400,000 Traffic Signal Improvements 27 number $400,000 $10,800,000 Railroad Grade Separation 1 number $15,000,000 $15,000,000 9th Avenue Interchange 1 number $5,000,000 $5,000,000
Other Caltrans Improvements 7 intersections $500,000 $3,500,000 Subtotal $149,451,198
Contingency 15% $22,417,680
Engineering 15% $22,417,680
Arterial and Limited Arterial Right
of Way in Excess of 42 feet wide* 3,446,414.40 square feet $2.066 $7,120,292 Total Traffic Circulation Costs $201,406,849
* Square feet is the linear miles of arterials and limited arterials multiplied by 13 feet. Unit cost is $90,000 per acre converted to square feet.
Source: Hanford General Plan, Hanford Public
Works Dept.
Development Impact Fee Study September 2019
City of Hanford Page 46
Figure 11-1
Future Streets, Intersections, and Signals Included
Development Impact Fee Study September 2019
City of Hanford Page 58
SECTION 13 - IMPLEMENTATION
The new impact fees will be effective 60 days after they are adopted by resolution by the City Council. In order to effectively implement the impact fee program, several practices and procedures must be established. This section discusses accounting, collection, and reimbursement.
13.1 - Accounting
Proceeds from the development impact fees must be collected and segregated into separate accounts to ensure that fees are used for the purposes and projects for which the fees are collected.
The City need not provide separate accounts for different projects or improvements that are part of a specific impact fee and can utilize these monies for any project included in the original fee justification based on present day priorities. For example, traffic impact fees may be used for the highest priority traffic project that was included in the fee justification, as determined by the City Council. Annual reporting to the City Council of the status of each impact fee fund is required by law.
13.2 - Collection of Fees
Government Code Section 66007, adopted in 2007, states that the agency shall not require the collection of impact fees for residential development projects until either the final inspection has been made or the certificate of occupancy has been issued, whichever comes first. Most cities meet this requirement by identifying the amount of the fees when the building permit is issued, and then flagging the project so that final inspection is not given until the fees are paid. This code section does not apply to non-residential development projects.
13.3 - Non-conforming Buildings
There can be uncertainty about whether to collect impact fees when it is found that a building or dwelling has been constructed without proper building permits. When an unpermitted building or dwelling is discovered by the City and made to obtain a building code conformance permit, impact fees should also be paid.
13.4 - Increase in Fees for Inflation
Impact fees and the standard reimbursement amounts should be adjusted at least once per year to account for inflation. These adjustments are usually based upon Engineering News Record Construction Costs Index (ENRCCI), which estimates a general percentage change in construction costs over the previous year.
It is strongly recommended that, as part of the initial adoption of impact fees, the Council direct City staff to automatically increase fees once a year based on ENRCCI, as opposed to having the Council vote for increases every year. Voting once to authorize automatic yearly increases allows the City
Development Impact Fee Study September 2019
City of Hanford Page 59
to collect the full and current amount of impact fees on vesting tentative map subdivisions when new homes are constructed on those maps.
13.5 - Credits and Reimbursements
From time to time there will be instances where a developer may construct an infrastructure improvement for which fees are being collected. In these cases, the City can provide a fee credit in exchange for the actual infrastructure improvement that is constructed. Many cities provide a credit based on actual costs of construction. However, if actual unit costs are higher than are estimated in this study due to special circumstance, inflation, or otherwise, then those cities will be paying out more than they would have collected. An alternative approach that better protects the City from the risk of cost fluctuation is to only provide a credit based on the unit costs in this report and the master plans it relied upon for costs. This puts the risk of cost fluctuation on the developer. If costs are higher, the developer must cover that cost. Conversely, if the developer can build the infrastructure improvements for less, then the developer gets to keep that cost savings.
It is recommended that the amount of any fee credits be specifically identified in writing and approved by the City Engineer prior to approval of a final map for a residential project or issuance of a building permit for a non-residential project. If the amount to be credited is greater than amount of the impact fee, a cash reimbursement can be identified in writing and approved by the City Engineer and the Finance Director. The cash reimbursement for residential projects should be paid at final occupancy (the same time the fees are paid). All credits must be paid from their respective impact fee account. One account cannot pay a credit for another account.
Figures 13-1 and 13-2 list the types of credits and credit amounts that can be provided if the developer constructs improvements. Improvements that are not specifically listed in their respective master plans would only be creditable at the discretion of the Public Works Director. The amount of the credit should be automatically adjusted each year at the same rate that the impact fees are adjusted.
For water, wastewater, and storm drain pipelines the reimbursement credit will be the difference between the credit amount of an 8” water line and the credit amount of the required size, the credit amount of an 8” wastewater line and the credit amount of the required size, and the credit amount of a 12” storm drain line and the credit amount of the required size. There will be no credits given for 8” water and wastewater line installation or 12” storm drain line installation.
For wastewater lift stations, the reimbursement credit will be the difference between the ultimate design size being required in gallons per minute (gpm) and the size in gpm that would be required to serve the individual development.
Development Impact Fee Study September 2019
City of Hanford Page 60
Table 13-1
Available Impact Fee Credits from Water, Wastewater, and Storm Drainage Impact Fee Accounts Item Credit per Unit Unit
Water
8" Pipeline $65.00 lineal foot
12" Pipeline $173.25 lineal foot
18" Pipeline $210.28 lineal foot
Groundwater Well (1,500 gpm) $1,200,259.00 each
Pump Station (3 @ 3,100 gpm) $4,002,999.00 each
Pump Station (4 @ 1,400 gpm) $2,738,421.00 each
Storage Tank (1.5 MG) $3,419,975.00 each
Land for Storage Tank or Well $40,000.00 acre
Wastewater
8" Gravity Main $178.00 lineal foot
12" Gravity Main $301.53 lineal foot
15" Gravity Main $316.08 lineal foot
18" Gravity Main $341.21 lineal foot
21" Gravity Main $370.30 lineal foot
24" Gravity Main $384.85 lineal foot
27" Gravity Main $444.36 lineal foot
30" Gravity Main $522.39 lineal foot
36" Gravity Main $649.35 lineal foot
18" Force Main $304.39 lineal foot
Lift Station $1,382.80 gpm
Storm Drain
12" Pipeline $96.00 lineal foot
21" Pipeline $219.54 lineal foot
24" Pipeline $259.21 lineal foot
30" Pipeline $318.72 lineal foot
36" Pipeline $378.24 lineal foot
42" Pipeline $437.75 lineal foot
48" Pipeline $517.10 lineal foot
60" Pipeline $596.45 lineal foot
96" Pipeline $1,014.36 lineal foot
Retention Basin (0 to 5 acre feet) $33,040.08 acre foot Retention Basin (Over 5 to 10 acre feet) $19,725.46 acre foot Retention Basin (Over 10 to 20 acre feet) $11,224.84 acre foot Retention Basin (Over 20 acre feet) $6,816.16 acre foot
Development Impact Fee Study September 2019
City of Hanford Page 61
The available fee credits for circulation and park improvements made by developers are listed in Table 13-2. These are set fees that coincide with the unit costs used to calculate the impact fees.
Actual costs will not be used to determine fee credits. The Public Works Department will evaluate improvement plans when they are submitted to determine the type of fee credits that apply and their amount.
The right of way fee credit only applies to credit for right of way for General Plan designated arterials and limited arterials. The amount of square feet dedicated beyond a 42-foot wide half street will be eligible for fee credit. This fee credit would not apply to outlot parcels used for landscaping or other purposes.
Table 13-2
Available Impact Fee Credits from Circulation and Parks Impact Fee Accounts Item
Credit per
Unit Unit
Circulation - Arterial and Major Arterial Street
Median Curb (both sides) $20.00 lineal foot
Median Concrete (16' wide) $160.00 lineal foot
Pavement (one side - 22' wide) $79.59 lineal foot
Right of Way in exceeding 42’ wide half street $2.066 square foot Circulation - Collector Street
Pavement (one side - 18' wide) $56.76 lineal foot
Circulation - Street Intersections
Traffic Signal $400,000.00 each
Intersection Improvements (full) $400,000.00 each
Parks - Must be Identified in General Plan
Park Improvements $184,255.15 acre
Land for Park $90,000.00 acre
Engineering News Record Construction Costs Index (ENRCCI) Item Credit per Unit Unit 2019 to 2023 = 16.79% increase 8" Pipeline $65.00 LF $75.91
12" Pipeline $173.25 LF $202.34
18" Pipeline $210.28 LF $245.59
Groundwater Well (1,500 gpm) $1,200,259.00 EA $1,401,782.49 Pump Station (3 @ 3,100 gpm) $4,002,999.00 EA $4,675,102.53 Pump Station (4 @ 1,400 gpm) $2,738,421.00 EA $3,198,201.89 Storage Tank (1.5 MG) $3,419,975.00 EA $3,994,188.80
Land for Storage Tank or Well $40,000.00 AC $46,716.00
8" Gravity Main $178.00 LF $207.89
12" Gravity Main $301.53 LF $352.16
15" Gravity Main $316.08 LF $369.15
18" Gravity Main $341.21 LF $398.50
21" Gravity Main $370.30 LF $432.47
24" Gravity Main $384.85 LF $449.47
27" Gravity Main $444.36 LF $518.97
30" Gravity Main $522.39 LF $610.10
36" Gravity Main $649.35 LF $758.38
18" Force Main $304.39 LF $355.50
Lift Station $1,382.80 GPM $1,614.97
12" Pipeline $96.00 LF $112.12
21" Pipeline $219.54 LF $256.40
24" Pipeline $259.21 LF $302.73
30" Pipeline $318.72 LF $372.23
36" Pipeline $378.24 LF $441.75
42" Pipeline $437.75 LF $511.25
48" Pipeline $517.10 LF $603.92
60" Pipeline $596.45 LF $696.59
96" Pipeline $1,014.36 LF $1,184.67
Retention Basin (0 to 5 acre feet) $33,040.08 AC-FT $38,587.51 Retention Basin (Over 5 to 10 acre feet) $19,725.46 AC-FT $23,037.36 Retention Basin (Over 10 to 20 acre feet) $11,224.84 AC-FT $13,109.49 Retention Basin (Over 20 acre feet) $6,816.16 AC-FT $7,960.59 Median Curb (both sides) $20.00 LF $23.36
Median Concrete (16' wide) $160.00 LF $186.86
Pavement (one side - 22' wide) $79.59 LF $92.95
Right of Way in exceeding 42’ wide half street $2.07 LF $2.41 Pavement (one side - 18' wide) $56.76 LF $66.29
Traffic Signal $400,000.00 EA $467,160.00
Intersection Improvements (full) $400,000.00 EA $467,160.00 Park Improvements $184,255.15 AC $215,191.59
Land for Park $90,000.00 AC $105,111.00
Water
Wastewater
Storm Drain
Circulation - Arterial and Major Arterial Street
Circulation - Collector Street
Circulation - Street Intersections
Parks - Must be Identified in General Plan
Tract 928, Unit 4 Reimbursement Summary DRAFT
The subdivision agreement for Tract 928, Unit 4 states that reimbursements are allowed for certain improvements, and must be made “in writing prior to the Notice of Completion being accepted by the City Council. The conditions of approval, which are included in the Resolution 20-23-R for Tract 928, states that reimbursements shall be made per the City Impact Fee Reimbursements document.
Per the Subdivision Agreement:
A request was made by email from the developer on February 16, 2024. The Notice of Completion was approved by City Council in June 20, 2024.
The developer, per the Conditions of Approval, was required to submit three cost proposals prior to construction for the costs incurred for the improvements for review and approval by the City Engineer prior to start of construction.
The developer did not submit the cost proposals for work performed on Fargo Avenue prior to construction. Reimbursements for pavement are determined by the City Impact Fee Study with a cost escalator for construction of the specified improvements that are stated in the Conditions of Approval and authorized by the City Impact Fee Study.
The following exhibits are from the City Impact Fee Study. Reimbursements are allowed for BLUE streets as shown below. Per the Conditions of Approval shown in Resolution 20-23- R, Tract 928, Unit 4 reimbursements include street, sewer, and water improvements in Fargo Avenue (Arterial). As shown on the Tract 928, Unit 4 improvement plans, all underground infrastructure was existing, and therefore are not reimbursable with this phase. Per the City Impact Fee Study, reimbursements are allowed for paving on Centennial Drive (Collector) for 18’ of paving (on side).
The reimbursable costs for improvements shall include a PCI Escalator (based on Impact Fee Reimbursement document adoption date to the Notice of Completion date (September 2019 to June 2024). The escalator to costs stated in the City Impact Fee Study are determined to be 19.77% increase in costs stated.
Per the final map for Tract 928, Unit 4, there was no additional right of way dedicated to the City.
Fargo Avenue
The project improvement plans show construction of Fargo Avenue. Per the City Impact Fee Study, the developer is eligible for reimbursement for pavement on Fargo Avenue (Arterial) of 22’ width at $79.59 plus escalator.
The length of pavement improvements on Fargo Avenue are 823 lf.
Centinnial Drive
Additionally, the project improvement plans show construction of Centennial Drive. Per the City Impact Fee Study, the developer is eligible for reimbursement for pavement on Centinnial Drive (Collector) of 18’ width at $59.76 plus escalator.
The cost per square foot for collector streets is $59.76/18’ = $3.32 per sf. With escalator, this amounts to $3.32 x 119.77% = $3.98 per sf.
The length of pavement improvements on Centennial Drive are 749.36+467.52-42-60.00- 120.71-30.00= 964.17 lf.
The width of the pavement installed is 15’ wide, which amounts to a total of 17,625 s.f.
Fargo Avenue Reimbursements:
The improvements on Fargo Avenue included pavement across the frontage of the development. Reimbursements are based on the City Impact Fee Study for Arterial street pavement in the amount of 22’ wide.
The conditions state that a 15” sanitary sewer main was to be installed in Fargo Avenue, however, the developer did not install the sewer main stated in the Conditions of Approval and as shown on the city Sewer Masterplan. Therefore, the developer shall contribute their share of an 8” sanitary sewer main in Fargo Avenue for a future city project to perform the work.
Centennial Avenue Improvements:
The improvements on Centennial Avenue included pavement across the frontage of the development at a width of 15’ wide. The City Impact Fee Study reimburses for 18’ of pavement on Collector Streets. Since the provided pavement width does not meet the 18’ width of paving, the pavement reimbursement will be based on a square footage rate calculated from the Fee Study rate as shown below.
The Conditions of Approval state the following:
A traffic signal is identified at the intersection of Fargo Avenue and Centennial Drive to be installed, which would be reimbursable. The developer provided information to the city that the project did not warrant a traffic signal with their development, therefore the traffic signal is not required with Tract 928 development.
Median curb and concrete were not constructed in Fargo Avenue, and are therefore not reimbursable.
Reimbursement rates are based on the City Impact Fee Study for construction stated in the Conditions of Approval.
The following is a summary of the reimbursements:
Fargo on site frontage improvements: 823 lf
1. Frontage improvements:
• Frontage Pavement: $79.59 per LF (for 22’ of paving, on side.) x 823 LF = $65,502.57 x 119.77% = $78,452.43 to be reimbursed from the Transportation Impact Fees for frontage pavement.
2. Centennial Avenue Reimbursements:
• The improvement on Centennial Avenue included pavement across the frontage of the development of 15’ wide. The total square feet of pavement installed on Centennial Drive is 15’x964.17 lf = 14,462.55 sf
• The reimbursement for Centennial Drive pavement is 14,462.55 sf x $3.98 per sf = $57,560.95 to be reimbursed from the Transportation Impacr Fees for frontage improvements.
3. Traffic signal at Fargo and Centennial: required to be constructed unless shown by a detailed traffic analysis shows that signal is NOT required. a. No reimbursements for a traffic signal. Circulation impact fees were paid to support a future traffic signal per the city impact fee codes.
4. Reimbursement for Final Map review (per invoices from Acting City Surveyor Michael Sutherland: $975.00 x 110% = Credit of $1,072.50 to be paid by Developer for final map review to the Engineering Special Services for Plan Review fund.
5. Sewer Main: Developer to pay for share of 8” SS main – SS main was not installed as required per the Conditions of Approval and the City Masterplan. Fee is to allow for future installation of sewer main by others.
a. 8” SS: $178.00 x 119.77% = $213.19 per lf. Developer share is 50% of 8” SS = $106.60 per lf.
i. 823 lf x $106.60 = Credit of $87,731.80 to be paid by76 developer to the Sewer Impact Fees.
Transportation Impact Fees - $78,452.43 + $57,560.95 = $136,013.38 Sewer Impact Fees – Credit - $87,731.80 -$87,731.80
Final Map Review – Credit -$1,072.50 -$ 1,072.50
Total Reimbursement to the developer: $47,209.08
§ 13.08.150Oversized sewer line.
The city shall have the right to require an applicant to construct an oversized sewer line. If the city requires an applicant to construct an oversized sewer line, the city shall reimburse the applicant the actual cost paid by the applicant for the oversizing in accordance with the provisions of Chapter 15.49 of the Hanford Municipal Code. Only sewer lines larger than six inches in internal diameter and which have been identified in the city's sewer impact fee program, shall be considered oversized; however, if an applicant requires a sewer line larger than six inches for its own purposes, then the oversized sewer line will be considered the size required to serve that applicant. The city engineer is empowered to make the determination as to how much, if any, oversizing is required and is also empowered to determine the difference in cost between the actual construction and installation cost and the average cost of a six inch (or larger) sewer line. The decisions made by the city engineer shall be binding and conclusive on the applicant.
(Ord. 12-02, 2012)
ENR Construction cost Escalation Calculation
Based on current ENR published PCI cost increases
Date PCI value Increase Percent incre
Fa = Date of Approved Fee Study 9/19/2019 11311 1.197666 119.77% Fb = Date of Construction Installation (NOC) 6/20/2024 13546.8 \
Website for Construction Cost Indes
https://www.enr.com/economics/historical_indices/construction_cost_index_history
From: Nicolas Peters
To: Josh Stites
Subject: FW: SJV Homes: Reimbursements
Date: Thursday, June 20, 2024 3:38:53 PM
Attachments: Outlook-A picture .png
See correspondence below.
From: Nicolas Peters <[email protected]>
Sent: Friday, February 16, 2024 1:23 PM
To: Lisa Dock <[email protected]>
Cc: Steve Coodey <[email protected]>; Josh Stites <[email protected]> Subject: Re: SJV Homes: Reimbursements
Lisa,
Please take a look at the notes below. This is my proposed order of submittal. Can we start by finishing up 865-1 and 928-3? Or do you want to hold off on those for now?
1. 865-2 Final map was recorded, No NOC at this time - we are trying to get the interconnect bid awarded. Under
2. 881-1 Final map was recorded, Still under Construction
3. 928-4 Final map was recorded, Still under Construction Tracts that Have NOC:
1. 865-1 Final map was recorded and went for NOC a while back
2. 928-3 Final map was recorded and went for NOC in October. I requested Reimbursements from Steve in September - Before NOC
Thanks,
Nic
From: Lisa Dock <[email protected]>
Sent: Friday, February 16, 2024 12:52 PM
To: Nicolas Peters <[email protected]>
Cc: Steve Coodey <[email protected]>; Josh Stites <[email protected]> Subject: RE: SJV Homes: Reimbursements
Hello Nic,
Please go through the conditions of approvals for all of these. You will find the reimbursables identified and the required submittals and timelines. We should start with the first that is going to NOC since the requests must be made prior to NOC and we would like to have the NOC and reimbursements to go to Council together or at consecutive meetings.
We have been discussing all the items on Live Oak West (TR865) for some time, so those reimbursements can move forward. This request covers these locations, so we will move forward with finalizing the reimbursements for:
865-1
865-2
881-1
928-3
928-4
Thank you.
Best regards,
Lisa Dock, PE/QSD
City Engineer
Phone: (559) 585-2555
From: Nicolas Peters <[email protected]>
Sent: Friday, February 16, 2024 12:21 PM
To: Lisa Dock <[email protected]>
Cc: Steve Coodey <[email protected]>; Josh Stites <[email protected]> Subject: SJV Homes: Reimbursements
CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders.
Lisa,
Thank you for completing the Park Reimbursement. I will stop by today to pick up the check.
We still have a few we need to sort out. What order would you like to work in? I know there are a lot, but we can just work on them one at a time, and we can support however you need. 865-1
865-2
881-1
928-3
928-4
Thanks,
Nic Peters
Land Development Construction Engineer
San Joaquin Valley Homes
T 559.732.2660
C 559.699.5906
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