Agenda, regular meeting, second session — Highland City Council, September 12, 2023 (part 4 of 4)

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number FC- 05
Project Title 5th Street, Tippecanoe to Del Rosa Drive Storm Drainage Segment Infrastructure Local and Regional Flood Control Facilities Submitting Department Public Works - Engineering
Project Description
Construct a 33" to 51" of storm drainage line as part of the Measure I financed project. This road segment improvement has been identified as a Measure I project. Per SBCTA studies, 23. 20 % of these projects are required to support new development in Highland, thus would normally finance 23. 20% of the total project cost.

However, storm drainage improvements are not included within Measure I financing, and therefore, 100% of the cost has been allocated to local development impact fees. Engineering plan check, inspection, materials/ soils testing and project administration costs have been included at 13% of construction costs.

Justification/ Consequences of Avoidance:

These improvements are needed to provide efficient removal of storm water collected from the Highland storm drainage system. Storm water will increase in amounts proportional to the amount of development which in turn decreases the amount of impervious surface reducing the capability of the ground to absorb storm water. Commercial properties tend to have up to 90% of the parcel covered with either roof, asphalt parking lot or concrete walkway forcing significant amounts of water to flow off of the property. Industrial developments are somewhat less, at about an 85% run- off. Single family homes have about a 50% or less run- off factor. However, the cumulative amount of commercial, industrial and residential development will create significant amounts of run- off that must be dealt with safely and quickly. 2022 Update:

This project has been moved from Circulation ( ST- 11). Project cost updated to reflect partial completion of the project.

Reference Document: The project costs, representing the portion of the comprehensive project that is within Highland, have been provided by the San Bernardino County Flood Control District.

Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design 40, 260
Land Acquisition/ ROW
Construction 268, 400
Contingency 26, 480
Equipment/ Other
Total Estimated Cost 335, 500

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City of Highland
Master Facilities Plan — Project Detail
October 2022
Project Number FC- 06
Project Title Elder Gulch Storm Drain
Infrastructure Local and Regional Flood Control Facilities Submittin Department Public Works— Engineering
Project Description
City CIP SDR 19001 is the portion of the Elder Gulch drainage system located south of Greenspot Road consists of an enclosed reinforced concrete box and an open channel. This is a regional drainage facility owned and maintained by the San Bernardino County Flood Control District. For several years, the District has been making efforts to develop a capital project to improve this regional drainage facility. The District has also secured approval of a $ 3, 000, 000 FEMA grant providing funding needed to complete this $ 10. 3 million project The District is willing to design the project to accommodate the City' s need to transmit storm flows from City streets and from the portion of the Elder Gulch storm drain located north of Greenspot Road, which is a City facility.

Justification/ Consequences of Avoidance:

This project has been added to the MFP by City staff.

Reference Document: The project costs, representing the portion of the comprehensive project that is within Highland, have been provided by the San Bernardino County Flood Control District.

Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design 38, 700
Land Acquisition/ ROW
Construction 258, 000
Contingency 25, 800
Equipment/ Other
Total Estimated Cost 322, 500

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City of Highland
Master Facilities Plan — Project Detail
October 2022
Project Number FC- 07
Project Title Greenspot Road Storm Drainage ( 6- SA- 07) Infrastructure Local and Regional Flood Control Facilities Submitting Department Public Works - Engineering
Project Description
The Greenspot Road Storm Drain ( Comprehensive Storm Drain Plan 6-SA-07) is the proposed master planned 42" storm drain connection between the upper reach of CSDP 6- SA-07 north of Canal Street and the existing Weaver Channel south of the Greenspot Road/ Weaver Street intersection. In addition to conveying the drainage from north of Canal Street this proposed master planned 42" storm drain line is to collect and convey drainage between Alta Vista and the east side of Tr. 13936- 3 ( at Unicorn Way and Silver Buckle Court) and south of Santa Ana Canyon Road and north of Greenspot Road.

Justification/ Consequences of Avoidance:

This project has been added to the MFP by City staff.

Reference Document: The project costs, representing the portion of the comprehensive project that is within Highland, have been provided by the San Bernardino County Flood Control District.

Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design 120, 000
Land Acquisition/ ROW
Construction 800, 000
Contingency 80, 000
Equipment/ Other
Total Estimated Cost 1, 000, 000

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0-1
City of Highland
Master Facilities Plan — Project Detail
October 2022
Project Number FC- 08
Project Title 6th Street Storm Drain ( 6- WA- 03 & 6- CI- 03) Infrastructure Local and Regional Flood Control Facilities Submitting Department Public Works— Engineering
Project Description
6th Street Storm Drain ( Comprehensive Storm Drain Plan 6- WA-03 and 6- CI- 03) is the proposed master planned 51" storm drain connection between the downstream portion of 6-WA-03 west of Tippecanoe in the City of San Bernardino and the beginning of the 6-WA- 03 storm drain north of the intersection of Elm Street and 6th Street.

Justification/ Consequences of Avoidance:

This project has been added to the MFP by City staff.

Reference Document: The project costs, representing the portion of the comprehensive project that is within Highland, have been provided by the San Bernardino County Flood Control District.

Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022-23 2023- 24 2024- 25 Build- Out TOTAL Design 480, 000
Land Acquisition/ ROW
Construction 3, 200, 000
Contingency 320, 000
Equipment/ Other
Total Estimated Cost 4,000, 000

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number FC- 09
Project Title 9th Street Sterling to Victoria Storm Drainage Segment ( 6-WA- 07) Infrastructure Local and Regional Flood Control Facilities Submitting Department Public Works - Engineering
Project Description
Construct a 30" to 39" storm drainage line as part of the Measure I financed ( portion) project. This road segment improvement has been identified as a Measure I project. Per SBCTA studies, 23. 20% of these projects are required to support new development in Highland, thus would normally finance 23. 20% of the total project cost. However, storm drainage improvements are not included within Measure I financing. Engineering plan check, inspection, materials/ soils testing and project administration costs have been included at 13% of construction costs.

Justification/ Consequences of Avoidance:

This project has been moved from Circulation ( ST- 31). Project cost updated to reflect partial completion of the project.

Reference Document: The project costs, representing the portion of the comprehensive project that is within Highland, have been provided by the San Bernardino County Flood Control District.

Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design 49, 098
Land Acquisition/ ROW
Construction 327, 318
Contingency 32, 732
Equipment/ Other
Total Estimated Cost 409, 148

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number FC- 10
Project Title Base Line, Del Rosa Drive to Highland Creek ( 6- DR- 01) Infrastructure Local and Regional Flood Control Facilities Submitting Department Public Works - Engineering
Project Description
Construct a 24" to 57" storm drainage line as part of the Measure I financed ( portion) project. This road segment improvement has been identified as a Measure I project. Per SBCTA studies, 23. 20% of these projects are required to support new development in Highland, thus would normally finance 23. 20% of the total project cost. However, storm drainage improvements are not included within Measure I financing. Engineering plan check, inspection, materials/ soils testing and project administration costs have been included at 13% of construction costs.

Justification/ Consequences of Avoidance:

This project has been moved from Circulation ( ST- 39). Project cost updated to reflect partial completion of the project.

Reference Document: The project costs, representing the portion of the comprehensive project that is within Highland, have been provided by the San Bernardino County Flood Control District.

Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022- 23 2023-24 2024- 25 Build- Out TOTAL Design 63, 000
Land Acquisition/ ROW
Construction 420, 000
Contingency 42, 000
Equipment/ Other
Total Estimated Cost 525, 000

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number FC- 11
Project Title Tippecanoe, 3rd to 6th Street Storm Drain ( 6- CI- 01) Infrastructure Local and Regional Flood Control Facilities Submitting Department Public Works - Engineering
Project Description
Construct a 27" to 69" storm drainage pipe as part of the Measure I financed ( portion) project. This road segment improvement has been identified as a Measure I project. Per SBCTA studies, 23. 20% of these projects are required to support new development in Highland, thus would normally finance 23. 20% of the total project cost. However, storm drainage improvements are not included within Measure I financing. Engineering plan check, inspection, materials/ soils testing and project administration costs have been included at 13% of construction costs.

Justification/ Consequences of Avoidance:

This project has been moved from Circulation ( ST- 125). Project cost updated to reflect partial completion of the project.

Reference Document: The project costs, representing the portion of the comprehensive project that is within Highland, have been provided by the San Bernardino County Flood Control District.

Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design 117, 000
Land Acquisition/ ROW
Construction 780, 000
Contingency 78, 000
Equipment/ Other
Total Estimated Cost 975, 000

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City of Highland
General Facilities, Equipment
and Vehicles

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City of Highland, California
Master Facilities Plan - All Plan Areas
General Facilities, Vehicles and Equipment
July, 2023
Project Build
FY 2023 FY 2024 FY2025 FY 2026 GP Build- Out Out Total
GF- 01 City Hall Improvements( 20, 000 S. F. Expansion) 13, 272, 066 GF- 02 Expansion of City Pool/ Maintenance Fleet 1, 294, 120 $ 921, 564 GF- 03 Computer Storage and Processing Upgrade 496, 230 GF- 04 Eastern Area Satellite Maintenance Yard 397, 810 $ 1, 795, 290 Total 16, 485, 150
Notes:
1) If project timing is not a component of this effort, then all projects default to their" Thru Build Out" amount.

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number GF- 01
Project Title City Hall Improvements ( 20, 000 S. F. Expansion) Infrastructure General Facilities, Vehicles and Equipment Submitting Department Various
Project Description
Expand the existing City Hall by 20,000 square feet. The expansion would require the acquisition of an additional acre of land. The additional space would accommodate the General Plan build- out level of staffing and a larger City Council chambers.

Justification/ Consequences of Avoidance:

As the City approaches " build- out", there will be the need for additional office, meeting and storage space. 2022 Update:

City Staff has provided an updated cost for the expansion to City Hall.

Reference Document: Staff Planning
Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design 1, 061, 765
Land Acquisition/ ROW 398, 162
Construction 10, 219, 491
Contingency 663, 603
Equipment/ Other 929, 045
Total Estimated Cost 13, 272, 066

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number GF- 02
Project Title Expansion of City Pool/ Maintanance Fleet Infrastructure General Facilities, Vehicles and Equipment Submitting Department Various
Project Description
Expand the general City's fleet of pool/ maintenance vehicles.

Justification/ Consequences of Avoidance:

The City will require additional pool cars as the City expands for code enforcement, mail and supply delivery, staff use and other required services. Additionally, the City would not have adequate maintenance vehicles with which to maintain the additional streets, storm drainage pipes, parks, and facilit. es to be added through General Plan build- out.
2022 Update:

RCS has used the Consumer Pricing Index to update the original 2006 project cost by 147. 07%.

Reference Document: Staff Planning
Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design
Land Acquisition/ ROW
Construction
Contingency
Equipment/ Other 921, 564
Total Estimated Cost 921, 564

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number — GF- 03
Project Title Computer Storage and Processing Upgrade
Infrastructure General Facilities, Vehicles and Equipment Submitting Department Various
Project Description
Expand the City' s computer capacity.

Justification/ Consequences of Avoidance:

Additional computer storage and processing capability would need to be acquired to accomodate additional data required as a result of additional citizens and businesses. 2022 Update:

RCS has used the Consumer Pricing Index to update the original 2006 project cost by 147. 07%.

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number GF- 04
Project Title Eastern Area. Satellite Maintenance Yard
Infrastructure General Facilities, Vehicles and Equipment Submitting Department Various
Project Description
Construct a small maintenance yard in the eastern portion of the City. The one acre facility would consist of a work and storage building, a few aggregate bins and a small office/ locker facility. The facility would be fenced with security lighting and a security gate.

Justification/ Consequences of Avoidance:

The main City Corporation Maintanence facility would continue to be used and would require maintenance crews to drive long distancs to the far eastern portion of the City. A maintenance facility is the first line of defense in the effort to maximize the lifetime of the City' s valuble assets, currently estimated at a replacement value of between a half to three- quarters of a billion dollars. 2022 Update:

RCS has used the Engineering News Record Building Cost Index to update the original 2006 project cost by 184. 01%.

Reference Document: Staff Planning
Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design 143, 623
Land Acquisition/ ROW 53, 859
Construction 1, 382, 373
Contingency 89, 765
Equipment/ Other 125, 670
Total Estimated Cost 1, 795,290

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City of Highland
Library Facilities
and Collection

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City of Highland, California
Master Facilities Plan - All Plan Areas
Library Facilities and Collection
July, 2023
Project Build
FY 2023 FY 2024 FY2025 FY 2026 GP Build- Out Out Total
LB- 01 Library Building Expansion 4, 940, 932 $ 4, 940, 932 LB- 02 Expansion of Library Collection 983, 238 $ 983, 238 Total 5, 924, 170
Notes:
1) If project timing is not a component of this effort, then all projects default to their" Thru Build Out" amount.

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number LB- 01
Project Title Library Building Expansion
Infrastructure Library Facilities and Collection
Submitting Department Public Library
Project Description
Acquisition of land and construction of a roughly 5, 000 square foot library expansion. The additional square feet would probably be an expansion to the existing facility but could be a separate facility.

Justification/ Consequences of Avoidance:

The proposed expansion will provide the square footage necessary to maintain an acceptable ratio of floor space to residential patrons. The current level of service standard is 0. 58 square feet of library space per resident. Should the library not be expanded by the 5, 000 square feet, the space per resident would drop by 25% to about 0. 43 square feet at build- out. Construction of the additional 5, 000 square feet will also allow the ratio to drop by 11 planned 17% to 0.48 square feet per resident. It should be noted that the resulting

0.48 square feet per person is still within the American Library Association recommended minimum standard of 0. 40 square foot per person.
2022 Update:

RCS has used the Engineering News Record Building Cost Index to update the original 2006 project cost by 184. 01%.

Reference Document: Staff estimates
Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design 494, 093
Land Acquisition/ ROW 691, 730
Construction 3, 409, 243
Contingency 345, 865
Equipment/ Other
Total Estimated Cost 4,940,932

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number LB- 02
Project Title Expansion of Library Collection
Infrastructure Library Facilities and Collection
Submitting Department Public Library
Project Description
Acquisition and processing of approximately 42, 900 books or other items to increase the Public Library' s collection to maintain pace with new residential home construction and occupancy.

Justification/ Consequences of Avoidance:

The proposed expansion will provide the collection additions necessary to maintain the current ratio of books to residential patrons and business patrons as is offered at this point in time. The current levels of service standards are 2. 43 books per resident. Should the current collection not be expanded the number of books per resident would drop 26% to about 1. 80 books per person. The almost 43,000 books represents the additional collection necessary to maintain the current levels of service provided by the existing collection. 2022 Update:

RCS has updated the cost of the accession process for the Library DIF.

Reference Document: Staff estimates
Allocation to General Plan Development 100. 00%
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design
Land Acquisition/ ROW
Construction
Contingency
Equipment/ Other 983, 238
Total Estimated Cost 983, 238

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City of Highland
Public Use
Facilities

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City of Highland, California
Master Facilities Plan - All Plan Areas
Public Use( Community Center) Facilities
July, 2023
Project Build
FY 2023 FY 2024 FY2025 FY 2026 GP Build- Out Out Total
CC- 01 Construct Additional Public Use Space( Completed) Total
Notes:
1) If project timing is not a component of this effort, then all projects default to their" Thru Build Out" amount.

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number CC- 01
Project Title Construct Additional Public Use Space
Infrastructure Public Use Facilities
Submitting Department Community Services
Project Description
The City's existing standard of public use space is 0. 594 square foot per resident. This is based upon the inventory of 33, 600 square feet of public use space for the City' s 56, 546 residents ( 33, 600/ 56, 546 = 0. 594).

Based upon this existing standard and the potential for 22, 196 additional residents at General Plan build- out, the City could adopt and impose impact fees that would construct an additional 14,484 square feet of public use space. The 14, 484 additional square feet would maintain the 0. 653 square foot per resident standard.

Justification/ Consequences of Avoidance:

The City has a public use facilities standard of 0. 594 square feet per resident based upon the total 33, 600 square foot dedicated to community and recreation services for the existing 56, 546 residents. To maintain that standard through General Plan build- out, the City would need to construct an additional 14, 484 square feet of community service or recreation center space for use by the final projected 73,685 plus population. 2022 Update:

Completed
Reference Document: None, the proposed project is based upon the existing public use building standard and expected population resulting from new development.

Allocation to General Plan Development
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design 0
Land Acquisition/ ROW 0
Construction 0
Contingency 01
Equipment/ Other
Total Estimated Cost 0

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City of Highland
Parkland Acquisition and
Park Facilities Development

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City of Highland, California
Master Facilities Plan - All Plan Areas
Park Land Acquisition and Facilities Development
July, 2023
Project Build
FY 2023 FY 2024 FY2025 FY 2026 GP Build- Out Out Total
PK- 001 Parkland Acquisition and Park Facilities Improvements 14, 621, 352 $ 14, 621, 352 PK- 002 Construct Community Pool( removed from projects) PK- 003 Trails Rights- of-way and Minor Improvements( removed from projects) Total 14, 621, 352
Notes:
1) If project timing is not a component of this effort, then all projects default to their" Thru Build Out" amount.

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410 City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number PK- 01
Project Title Parkland Acquisition and Park Facilities Improvements Infrastructure Park Land Acquisition and Park Facilities Development Submitting Department Community Services Department
Project Description
Acquire 18. 92 acres for use as active parkland and construct park facilities.

Justification/ Consequences of Avoidance:

As the City' s population increases there will be additional demands upon the City' s limited inventory of parkland. Additional park acres will be necessary to meet the needs of the potential additional 10, 228 residents.
2022 Update:

RCS has updated the park standard, construction cost and land acquisition cost for this project.

Reference Document: Park development will be consistent with the City' s General Plan.

Allocation to General Plan Development
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design 2, 485, 630
Land Acquisition/ ROW 5, 263, 687
Construction 6, 287, 181
Contingency 584, 854_
Equipment/ Other
Total Estimated Cost 14, 621, 352

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C City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number a PK-02
Project Title Construct Community Pool
Infrastructure Park Land Acquisition and Park Facilities Development Submitting Department Community Services Department
Project Description
Construct a community pool.

Justification/ Consequences of Avoidance:

The general population has indicated interest in building a community pool. 2022 Update:

Removed from Project List at direction of Staff.

Reference Document: Park development will be consistent with the City's General Plan.

Allocation to General Plan Development
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design
Land Acquisition/ ROW
Construction
Contingency
Equipment/ Other
Total Estimated Cost 0

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City of Highland
Master Facilities Plan — Project Detail
July 2023
Project Number PK- 03
Project Title Trail Rights- of-way and Minor Improvements Infrastructure Park Land Acquisition and Park Facilities Development Submitting Department Community Services Department
Project Description
Acquire trail capacity through either acquisition of easements for use or fee- title land for the construction of trails connecting various existing trails and park or public facilities.

Justification/ Consequences of Avoidance:

The general population has indicated a desire to increase the number of miles of all- purpose trails connecting various parts of the community.
2022 Update:

Removed from Project List at direction of Staff.

Reference Document: Park development will be consistent with the City' s General Plan.

Allocation to General Plan Development
Project Costs 2021- 22 2022- 23 2023- 24 2024- 25 Build- Out TOTAL Design
Land Acquisition/ ROW 0
Construction
Contingency
Equipment/ Other
Total Estimated Cost 0

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EXHIBIT C
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Findings in Support of Continuing the City of Highland' s Policy to Impose Residential Development Impact Fees on a per Unit Basis
AB- 602 ( Gov' t C. sections 66016. 5( a)( 5)( A) and ( B)) states that if the City adopts a calculation and nexus study after July 1, 2022, it must either " calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development" or make the following findings:
i) An explanation as to why square footage is not an appropriate metric to calculate fees imposed on housing development projects.
ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development. iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.

There is no requirement for the City to have a financial element in the City' s General Plan document. Thus, a properly calculated Development Impact Fee Calculation and Nexus Report functions as the de-facto financial plan in support of the City' s General Zoning Plan. It identifies the anticipated service demands by infrastructure based upon averages and lays out a fair and reasonable method with which to finance the required capital projects and acquisitions necessary to accommodate those anticipated new service demands.

The City of Highland has expressed that it will continue to impose residential development impact fees based upon the same manner that additional development service demands are calculated that is, by type of average unit. The City will not impose development impact fees based on residential development projects proportionate to the square footage of proposed units for completing the City' s General Plan. The current set of fees fosters greater accuracy in planning and provides the City with the required level of certainty in impact fee collection.

The California Mitigation Fee Act ( Government Code § 66000, et. seq.), which was first established in 1987, specifies that every public agency that adopts development impact fees must provide the essential calculation and nexus report with fees calculated upon data that is as empirical as possible. AB- 602' s Proportionate to Square Footage, is based upon a presumption' that a smaller detached dwelling creates less local government service demands than a larger detached dwelling. AB- 602 does not offer any peer reviewed, third- party empirical data that substantiates that a small square footage detached dwelling unit creates less municipal service impacts than a larger square foot detached dwelling. As such, the City has determined that the best practices for both managing development and obtaining the adequate impact fee financing for the development- generated infrastructure is as identified in this Report.

This Report indicates that the City of Highland has 311 acres zoned for future detached dwellings. At approximately 5. 03 detached dwelling units per acre, this equates to an additional 1, 563 detached dwellings to be constructed by General Plan build- out of the City. The City does not, however, have any information as to how many square feet any of these 1, 563 detached dwelling units will be because that is, within applicable zoning, determined by the developers of the various parcels. 1 ( noun: presumption, plural noun: presumptions— an idea that is taken to be true, and often used as the basis for other ideas, although it is not known for certain.
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This Report employs the most defensible empirical sources, appropriate to the demands of that particular infrastructure to determine the average demands of an average detached dwelling.

These sources determine demand by an average detached dwelling but do not produce this demand data for various sized detached dwellings. Such data is simply not available.

The amount and complexity of any city' s infrastructure defines ( in all or part) the Level of Service LOS) of that infrastructure, not just currently but in perpetuity. This makes the one- time DIF financing of any city infrastructure that much more important. It must balance new development with the additional police responses given the desired police staffing standard. It will take a combination of additional law enforcement station space, response and support vehicles and specialty equipment to support the officers required by new development. The importance of having a properly calculated and documented DIF schedule in order to accommodate development- related demands cannot be over- stated. The same concept holds true for the two labor- intensive public safety services and the infrastructure intensive services such as the street circulation system and the storm drainage system.

The collection of an impact fee to raise monies for development- based demands is one- time but represents the municipal service needs of that dwelling unit as long as that structure exists. Thus, the argument that any new detached dwelling will generate less municipal service demand based on its smaller square footage is divorced from the reality that any particular residential dwelling may have different occupants over 50 years, from a family of four or more to a single resident.

Police and Fire Calls- for-Service ( CFS) - For the calculation of Police and Fire demand data, RCS used Highland calls- for- service matched up with the City' s Land- Use GIS database. Again, the City does not know what size these detached dwellings are so could not possibly determine the total square feet of 1, 563 detached dwellings or the individual square footage of each of those 1, 563 dwellings. GIS data does not include the size of each residential dwelling in the City.

Circulation Needs - According to the volume of empirical data collected by the highly respected Institute of Traffic Engineering ( ITE), an average detached dwelling generates approximately 9. 5 trip-ends per day, but the ITE does not offer any distinction between small and large homes, because such data does not exist in their database.

Storm Drainage - The storm runoff from a 1, 800 square foot single- floor residence is the same as the storm runoff from a 3, 600 square foot two- story building. Both have a 1, 800 square foot pad, so a 50% fee for the 1, 800 square foot home compared to the 3, 600 square foot home would be inequitable and unsupported by data.

Quality of Life Infrastructure( parks, aquatic facilities, libraries and community centers) Quality of Life standards are based upon current population numbers. These impact fees are generally based upon census data that identifies average number of persons per type of dwelling unit. In Highland, those future figures are 3. 232 persons per detached dwelling, 3. 55 per attached dwelling unit and 2. 315 per mobile home. General Plan data does not determine these figures by size of dwelling unit and thus they represent the most empirically driven data.

Anecdotally there are likely 1, 300 square foot dwellings with anywhere from one, two or six residents just as there can be in a 2, 600 square foot home. Therefore, an average based on type of dwelling is far more empirical than dividing the average cost by some unsubstantiated average dwelling size. By doing so, larger residential dwellings could be treated unfairly if they end up being assessed a greater amount in order to balance or subsidize the smaller detached dwelling units based upon the presumption ( non- empirical data) that these smaller detached dwelling units somehow create lesser dwelling densities than would a larger unit. Such a subsidy flies in the face of The Mitigation Fee Act.
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Importance of a Static or Average Development Impact Fee Schedule. The City must be able to depend on the collection of sufficient impact fee revenues with which to finance development-generated projects necessary to provide new development with adequate and sufficient service levels without decreasing the existing levels of service for the rest of the community. This assurance will be diminished should the City choose a per residential square foot impact fee schedule. With a flat fee representing an average demand per unit, the City can have greater confidence in receiving the DIF revenue necessary to respond to those 311 acres zoned for future detached dwellings, regardless of their size.

The City's development practices neither favor nor penalize any one land- use over another.

Nor are the City' s policies unfair within any one land- use. For residential units based upon empirically- based averages, all are assessed the same fee; no developer is charged disproportionately. The type of dwelling unit drives the fee, not the square footage. For residential units, all are assessed the same fee; none are charged disproportionately.

Since the City does not impose per square foot- based impact fees, it also does not apply such fees on any room addition to a residential dwelling.

DIFs for non- residential uses ( i. e. the variety of businesses) have always been calculated and imposed on a
per square foot basis as empirical data is available for those uses. Additionally, each of those business uses ( see Table 2- 1) has differing maximum allowable floor area ratio FAR).

Highland is mindful that the state is encouraging construction of smaller detached dwellings and is assuming that these types of residential dwellings create lesser demand merely because they are smaller. However, given the lack of any empirical data supporting such an assumption, the City feels obligated to adopt residential impact fees that are fair to all developers of residential dwellings, regardless of size. In the end, the City has determined to err on the side of fair treatment of all residential development.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HIGHLAND, CALIFORNIA, AMENDING THE PARK LAND

ACQUISITION AND PARK FACILITIES DEVELOPMENT

FEE APPLICABLE TO NEW RESIDENTIAL SUBDIVISIONS
PURSUANT TO SECTION 16. 40. 200 OF THE HIGHLAND

MUNICIPAL CODE AND THE QUIMBY ACT
GOVERNMENT CODE SECTION 66477), AND MAKING

DETERMINATIONS UNDER CEQA
WHEREAS, California Government Code Section 66477 ( the " Quimby Act") authorizes the City Council, 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 approval of a tentative subdivision map or parcel map; and
WHEREAS, Highland Municipal Code Section 16. 40. 200 provides that as a condition of approval for development projects, the City may require the payment of fees, dedication of land, or both for the provision of neighborhood and community park and recreation facilities for city residents. This Section further provides that whenever a fee is to be paid in lieu of the dedication of land, the fee shall be established by resolution of the city council, and the fee shall bear a reasonable relationship to the value of land which would otherwise be required if land dedication were being made; and WHEREAS, the City has adopted a General Plan, specifically the Open Space and Conservation Element, which contains policies and standards for parks and recreation facilities, and the park and recreational facilities are in accordance with definite principles and standards; and
WHEREAS, the City Council adopted Resolution Nos. 2006- 059, 2007- 061, 2009- 002, 2009-044, 2010-043, 2012- 002, 2013-003, 2014-003, 2015-002, 2015-045, 2017- 005, 2018- 003, 2019- 010, 2020- 006, and 2021- 008 establishing the amount of park land acquisition and park facilities development fees ( hereinafter referred to as " Park Land Acquisition and Park Facilities Development Fee") applicable to new residential subdivisions pursuant to the Highland Municipal Code and the Quimby Act. Resolution No. 2021- 008 establishes the Park Land Acquisition and Park Facilities Development Fees that are currently in place; and
WHEREAS, at the City' s request, Revenue Cost Specialists, LLC prepared an updated Development Impact Fee Calculation and Nexus Report dated August 28, 2023 2023 DIF Report") and a correlating Master Facilities Plan dated July 2023 in compliance with Government Code Section 66016. 5. The 2023 DIF Report and Master Facilities Plan were adopted by the City Council on September 12, 2023 pursuant to Resolution No. and were included as Exhibits " A" and " B", respectively. The 2023 DIF Report and the Master Facilities Plan are hereby incorporated by this reference; and -330-
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WHEREAS, pursuant to Government Code Section 66001, the 2023 DIF Report identifies the purpose of each existing and proposed fee, the use to which the fee is to be put, establishes and explains how there is a reasonable relationship between the fee' s use and the type of development project on which the fee is to be imposed, and 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; and
WHEREAS, the City Council has reviewed and considered the 2023 DIF report, the Master Facilities Plan and pertinent provisions thereof, and finds that the Park Land Acquisition and Park Facilities Development Fee established therein bears a reasonable relationship to the value of land which would otherwise be required if land dedication were being made; the fees paid bear a reasonable relationship to the use of the park by the future inhabitants of the subdivision; the fees established do not exceed the proportionate amount necessary to provide park area per 1, 000 residents according to the standards established by the General Plan and Highland Municipal Code section 16. 40. 200; and that the land dedication requirement and in lieu fee established by the 2023 DIF Report, the manner in which the fees will be collected, the Park Land Acquisition and Park Facilities Development Fee fund administered, and the funds expended, is consistent with Highland Municipal Code Section 16. 40. 200 and the Quimby Act; and WHEREAS, pursuant to Government Code sections 66016, 66016. 5, 66018, and 6062a, the City must adopt development impact fees only after notice and public hearing; and
WHEREAS, pursuant to Government Code section 6062a, a notice of a public hearing on the proposed fee update was published on July 7, 2023 and July 14, 2023 in the San Bernardino Sun, a newspaper of general circulation; and WHEREAS, pursuant to Government Code sections 66016. 5, notice of the time and place of the meeting, including a general explanation of the matters to be considered and a statement that required data is available was provided at least thirty ( 30) days prior to the meeting to those members of the public who filed a written request with the City; and
WHEREAS, pursuant to Government Code section 66016, the City mailed 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, at least 14 days prior to the meeting to any interested party who filed a written request with the City for mailed notice of the meeting on new or increased fees or service charges; and WHEREAS, at least ten ( 10) days prior to the duly noticed August 8, 2023 public hearing, the City made available for public inspection information required under Government Code section 66000, et. seq.; and
WHEREAS, the Park Land Acquisition and Park Facilities Development Fees established by this Resolution are only imposed on subdivided land. A separate -331-
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resolution shall establish the development impact fees that will be imposed on nonsubdivided land for park and recreation facilities; and WHEREAS, the City has complied with the notice and hearing requirements of state law prior to adopting this Resolution, and a notice of public hearing on the Park Land Acquisition and Park Facilities Development Fees was mailed as required by law to any interested party who filed a written request with the City Clerk for mailed notice of a meeting on new or increased fees; and
WHEREAS, the City received comments to the 2023 DIF Report. As a result of those comments, staff determined that the August 8, 2023 public hearing should be continued to allow staff additional time to address comments raised by the public regarding the 2023 DIF Report. On August 3, 2023, the City notified those who had requested notice of a meeting on new or increased fees or service charges that the public hearing was being continued to the September 12, 2023 City Council meeting; and WHEREAS, on August 8, 2023 the City Council opened the noticed public hearing to consider the City' s proposed new development fees and continued the hearing to September 12, 2023. The 2023 DIF Report was updated to address the comments received from the public and was posted on the City' s website at least 10 days prior to the September 12, 2023 public hearing; and
WHEREAS, on September 12, 2023 the City Council held a noticed public hearing to consider the City' s proposed Park Land Acquisition and Park Facilities Development Fees at which time all interested persons were given an opportunity to comment; and WHEREAS, the City Council finds that the record of these proceedings, including the 2023 DIF Report, the City' s General Plan, ordinances and resolutions, the staff report, written correspondence received by the City, and the testimony received at the hearing prior to the adoption of this Resolution, held on September 12, 2023, contains substantial evidence to support the imposition and collection of the Park Land and Recreation Fees established herein; and
WHEREAS, the City Council has reviewed and considered the Park Land Acquisition and Park Facilities Development Fees established herein, and finds that the fees will mitigate some of the impacts associated with additional park and recreational needs necessitated by new residential development in the City.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HIGHLAND DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. Recitals. The findings and recitals set forth in this Resolution are true and correct, and are incorporated herein.

SECTION 2. CEQA. The approval of this Resolution was reviewed in accordance with the criteria contained in the California Environmental Quality Act (" CEQA") and the State CEQA Guidelines. The City Council finds that approval of this Resolution will not have a significant impact on the environment and is exempt from CEQA pursuant to -332-
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Section 15061( b)( 3) of State CEQA Guidelines because this action involves the adoption of Quimby fees and no specific development is authorized by the adoption of this Resolution. Therefore, the adoption of this Resolution does not have the potential for causing a significant effect on the environment. In addition, the adoption of this Resolution approves and sets forth a procedure for determining fees to maintain park and recreation services within existing service areas and is statutorily exempt from CEQA pursuant to State CEQA Guidelines 15273( a)( 4). Also, approval of this Resolution is exempt from the requirements of CEQA pursuant to State CEQA Guidelines Section 15378( b)( 4) because the Resolution not a " project" as defined by CEQA, but involves the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.

SECTION 3. Establishing the Amount of Park Land Acquisition and Park Facilities Development Fees. The City Council hereby adopts Park Land Acquisition and Park Facilities Development Fees on new residential subdivisions in the following amounts:

Quimby Act
Detached Dwelling 5, 239
Attached Dwelling 4, 770
Mobile Home Dwelling 3, 416
Commercial Lodging N/ A
Commercial/ Office N/ A
Industrial N/ A
SECTION 4. All Park Land Acquisition and Park Facilities Development Fees specified in Section 3 are to be imposed in accordance with Highland Municipal Code Section 16. 40. 200 and the applicable provisions of the 2023 DIF Report, on new development based on the proposed land use ( not zoning) of the proposed development.

For purposes of this Resolution, the following land use designations shall apply:

A. Detached Dwelling: Projects consisting of detached residential buildings as allowed within the City' s land use designation of Agricultural Equestrian, Low Density, and some Medium Density Residential.

B. Attached Dwelling: Projects consisting of attached residential units within a lot as allowed within the City' s land use designation of High Density Residential and some Medium Density Residential.

C. Mobile Home: Mobile home/ trailer parks, and manufactured homes in landleased communities, etc. This category does not include manufactured home subdivisions.

D. Commercial Lodging: Hotels and motels.

E. Commercial/ Office: Uses generally considered commercial. -333-
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F. Industrial: Uses generally considered industrial. This category also includes educational and religious establishments.

SECTION 5. Imposition of Fees. The Park Land Acquisition and Park Facilities Development Fees shall be imposed at the time of any building permit application and collected as a condition of building occupancy.

SECTION 6. Timing of Permit Application; Timing of Payment of Fees.

A. Park Land Acquisition and Park Development Facilities Fees shall be imposed and shall be payable in accordance with Highland Municipal Code Section

16. 40. 200.

B. Park Land Acquisition and Park Development Facilities Fees in effect at the time of building permit application shall continue to apply on any residential development project where the Building Official finds and determines that a complete building permit application has been submitted and accepted by the City of Highland, and that through no fault of the developer, the permit was not issued prior to the effective date of the Park and Recreation Fees.

SECTION 7. Effective Date of Park Land Acquisition and Park Development Facilities Fees. The Park Land Acquisition and Park Development Facilities Fees established by Section 3 of this Resolution shall be effective on the later of: ( i) the sixtieth 60th) day following the adoption of this Resolution or ( ii) the effective date of proposed Ordinance No. establishing the City' s program and requirements for the imposition of development impact fees on development projects.

SECTION 8. Superseding and Replacing of Other Resolutions Regarding Park Land Acquisition and Park Facilities Development Fees. This Resolution shall supersede Resolution No. 2021- 008 and govern any new residential subdivision that has applied for a building permit as of the date that this Resolution goes into effect. Any new residential subdivision that has not applied for a building permit as of the date that this Resolution goes into effect shall be governed by Resolution No. 2021- 08.

SECTION 9. No Changes to Other City Fees. Nothing in this Resolution shall repeal, amend or supersede any other City imposed fees except for the amount of specific type and category expressly established by this Resolution.

SECTION 10. If any section, subsection, clause or phrase of this Resolution is for any reason held to be unconstitutional, or otherwise invalid, such decision shall not affect the validity of the remaining sections hereof. The City Council hereby declares that it would have passed this Resolution and each section, subsection, clause and phrase hereof irrespective of the fact that any one or more other sections, subsections, clauses or phrases be declared invalid.

SECTION 11. Certification. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.
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PASSED, APPROVED, AND ADOPTED this 12th day of September 2023.

Larry McCallon
Mayor
ATTEST:

Betty Hughes, City Clerk
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ATTACHMENT 3
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ORDINANCE NO.

AN ORDINANCE OF CITY OF HIGHLAND, CALIFORNIA, ADDING A
NEW CHAPTER 3.36" DEVELOPMENT IMPACT FEES" TO TITLE 3

REVENUE AND FINANCE) OF THE HIGHLAND MUNICIPAL CODE

CODIFYING, UPDATING AND AMENDING THE CITY' S

COMPREHENSIVE SYSTEM OF DEVELOPMENT IMPACT FEES,
SUPERSEDING ORDINANCE NOS. 309 AND 422, AND MAKING

DETERMINATIONS UNDER THE CEQA
WHEREAS, the Mitigation Fee Act contained in Government Code 66000 et seq., permits the City to impose development impact fees on new development for the purposes of funding the public facilities necessary to serve that new development; and WHEREAS, in 1992 the City Council adopted Ordinance No 151, establishing a comprehensive system of development impact fees; and
WHEREAS, in Ordinance No. 151 the City recognized the need to regularly revise and update the development impact fees and the basis for the imposition and collection of the fees as new development occurs and consistent with the requirements of the law; and WHEREAS, in 1992 and 1998 the City Council adopted Resolution 92- 108 and Resolution 98- 26 respectively establishing the development impact fees to be imposed and collected pursuant to the authority of Ordinance No 151; and WHEREAS, in 2006, the City undertook a comprehensive update to the City' s development impact fee program, including the adoption of a new nexus study that was prepared by Revenue Cost Specialists, LLC and the adoption of Ordinance No. 309 by which the City adopted new findings and definitions, imposed development impact fees, provided for annual adjustments in the fees, set forth requirements for the time of the payment of development impact fees, the processes for reduction and waiver, establishment of separate accounts and other matters for the operation of the City' s development impact fee program; and
WHEREAS, in 2018, the City Council adopted Ordinance No. 422 by which the City amended Ordinance No. 309 to revise the text of Section 8 pertaining to when development impact fees are to be paid; and
WHEREAS, the City desires to adopt an updated nexus study and establish new dollar amounts for the City' s existing development impact fee categories so as to ensure that new development projects appropriately fund the costs associated with the demand for certain public facilities throughout the City that is caused by that new development; and WHEREAS, the need to collect fees on new residential construction to mitigate the impact on park and recreation facilities and to fund park facilities development costs, is separate from, and in addition to, the fees and costs for park land acquisition provided by the City' s Quimby Act Ordinance as provided in Chapter 16. 40. 200 of the Highland 12853- 0001\ 2849859v3 doc
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Municipal Code; and
WHEREAS, it is appropriate for new development to pay for improvements and developments proportionate to the demands the new development places on the City' s public infrastructure; and
WHEREAS, pursuant to Government Code Section 66001, the City prepared a study entitled " Development Impact Fee Calculation and Nexus Report for the City of Highland, California", dated August 28, 2023, which is defined herein as the " 2023 DIF Report" to identify the purpose of each existing and proposed fee, the use to which the fee is to be put, establish and explain how there is a reasonable relationship between the fee' s use and the type of development project on which the fee is to be imposed, and 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 2023 DIF Report is incorporated herein by this reference; and WHEREAS, the currently existing development impact fees have been updated to reflect the needs of the City related to new development and to otherwise comply with the requirements of the Mitigation Fee Act, including but not limited to Government Code Section 66001 et seq.; and
WHEREAS, pursuant to provisions of the Measure I ( 2010 — 2040) Ordinance approved by San Bernardino County voters in November 2004, each city in San Bernardino County must adopt a development mitigation program to require new development pays its fair share for regional transportation infrastructure; and WHEREAS, based on a Nexus Study for the regional transportation fee, SBCTA has set a fair share requirement for each local agency for regional transportation infrastructure; and
WHEREAS, pursuant to Government Code sections 66016, 66016. 5, 66018, and 6062a, the City must adopt development impact fees only after notice and public hearing; and
WHEREAS, pursuant to Government Code section 6062a, a notice of a public hearing on the proposed fee update was published on July 7, 2023 and July 14, 2023 in the San Bernardino Sun, a newspaper of general circulation; and WHEREAS, pursuant to Government Code sections 66016. 5, notice of the time and place of the meeting, including a general explanation of the matters to be considered and a statement that required data is available was provided at least thirty ( 30) days prior to the meeting to those members of the public who filed a written request with the City; and WHEREAS, pursuant to Government Code section 66016, the City mailed 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, at least 14 days prior to the meeting to any interested party who filed a written request with the City 2-
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for mailed notice of the meeting on new or increased fees or service charges; and WHEREAS, at least ten ( 10) days prior to the duly noticed August 8, 2023 public hearing, the City made available for public inspection information required under Government Code section 66000, et. seq.; and
WHEREAS, the City received comments to the 2023 DIF Report. As a result of those comments, staff determined that the August 8, 2023 public hearing should be continued to allow staff additional time to address comments raised by the public regarding the 2023 DIF Report. On August 3, 2023, the City notified those who had requested notice of a meeting on new or increased fees or service charges that the public hearing was being continued to the September 12, 2023 City Council meeting; and WHEREAS, on August 8, 2023 the City Council opened the noticed public hearing to consider the City' s proposed new development fees and continued the hearing to September 12, 2023. The 2023 DIF Report was updated to address the comments received from the public and was posted on the City' s website at least 10 days prior to the September 12, 2023 public hearing; and
WHEREAS, on September 12, 2023 the City Council held a noticed public hearing to consider the City' s proposed new development fees at which time all interested persons were given an opportunity to comment; and
WHEREAS, concurrent with the consideration of this Ordinance, the City Council considered, and by Resolution No. adopted, the 2023 DIF Report that contains and addresses all the required contents required by the Mitigation Fee Act, including the demonstration of the reasonable relationship between the proposed fee' s use and the type of development project on which the fee will be imposed. Resolution No. the Fee Resolution") also adopted updated development impact fees; and WHEREAS, the City seeks to codify the development impact fee program in its Municipal Code so it can be more easily accessible.

THE CITY COUNCIL OF THE CITY OF HIGHLAND DOES ORDAIN AS FOLLOWS:

Section 1. Recitals. The City Council hereby finds that all of the facts set forth in the Recitals above are true and correct.
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Section 2. Environmental Review. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (" CEQA"). The adoption of this ordinance is not a project within the meaning of the CEQA Guidelines Section 15378( b)( 4) and 15061( b)( 3) as it has no potential for physical effects on the environment because it involves an adoption of certain fees and/ or charges imposed by the City, does not commit the City to any specific project, and said fees and/ or charges are applicable to future development projects and/ or activities, each of which future projects and/ or activities will be fully evaluated in full compliance with CEQA when sufficient physical details regarding said projects and/ or activities are available to permit meaningful CEQA review see CEQA Guidelines, Section 15004( b)( 1)). Pursuant to CEQA Guidelines Section 15378( b)( 4), the creation of government funding mechanisms which do not involve any commitment to any specific project which may cause significant effect on the environment, is not defined as a " project" under CEQA. Therefore, approval of the fees and/ or charges is not a " project" for purposes of CEQA, pursuant to CEQA Guidelines Section 15378( b)( 4); and, even if considered a " project" under CEQA, is exempt from CEQA review pursuant to CEQA Guidelines Section 15061( b)( 3) because it can be seen with certainty that there is no possibility that approval of the fees and/ or charges may have a significant effect on the environment.

Section 3. Findings. The City Council makes the following additional findings:
a) The City Council finds, after consideration of the evidence presented to it including the " 2023 DIF Report," that the development impact fees need to be adjusted in order to assure that there are sufficient funds available to finance the public facilities necessary to serve new development within the City of Highland through the imposition, collection and use of development impact fee impact fees. b) The City Council finds, based on the evidence presented at the public hearing, and consistent with the City' s General Plan, that the imposition of impact fees on all development within the City of Highland shall be calculated at the time building permit applications are submitted to allow development projects to lock in the rate. c) The City Council finds that the fees imposed by this Ordinance and specified in the Fee Resolution to be adopted in connection with this Ordinance and development impact fee update, do not exceed the estimated cost of providing the public facilities.

Section 4. The City Council hereby adds a new Chapter 3. 36 " Development Impact Fees" to Title 3 ( Revenue and Finance) of the Highland Municipal Code to read as follows:

Chapter 3. 36 Development Impact Fees
Section 3. 36. 010 Purpose.

Section 3. 36. 020 Definitions.

Section 3. 36. 030 Establishment of Development Impact Fees.

Section 3. 36. 040 Fee Adjustments.

Section 3. 36. 050 Creation of Special Accounts.

Section 3. 36. 060 Land Use to Compute the Fee.

Section 3. 36. 070 Payment of the fee.
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Section 3. 36. 080 Development Impact Fee Exemptions and Exceptions.

Section 3. 36. 090 Developer Construction of Facilities.

Section 3. 36. 100 Calculation of Development Impact Fee Based Upon Special Circumstances Related to Intensity of Use.

Section 3. 36. 110 Application to Waive, Adjust, or Reduce Fees.

Section 3. 36. 010 Purpose.

A. The intent of the city is to require every person who develops land to mitigate the impacts of that development on the city' s public facilities. The city will therefore require developers to pay a development impact fee that will assist in meeting the demand for public facilities caused by development. The public facilities will be constructed in accordance with a Master Facilities Plan adopted by resolution of the city council.

B. A Development Impact Fee Calculation and Nexus Report for the City of Highland, California dated August 28, 2023, (" 2023 DIF Report") was prepared to identify the purpose of each existing and proposed fee, the use to which the fee is to be put, establish and explain how there is a reasonable relationship between the fee' s use and the type of development project on which the fee is to be imposed, and 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.

C. The amount of the development impact fees collected pursuant to this chapter shall be limited to the cost of public facilities attributable to new development. The amount of the public facilities development impact fees collected shall not include the cost of public facilities that serve existing development.

Section 3. 36. 020 Definitions.

For purposes of this Ordinance, the following terms, phrases, words, and their derivation shall have the meanings respectively ascribed to them by this section.

A. " Development Project" means any project undertaken for the purpose of development. " Development Project" shall include a project involving the issuance of a permit for construction or reconstruction, remodeling, or any work requiring any permit under the ordinances of the City, including the provisions of Title 16 " Land Use and Development" of the Highland Municipal Code. The term " Development Project" shall also include permits for erection of manufactured housing or structures, and structures moved into the City.

B. " Fee" means a monetary exaction, other than a tax or special assessment, which is charged by the City to an applicant in connection with the approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, but does not include fees specified in Section 66477 of the Government Code, nor fees for processing applications for regulatory actions or approvals, nor fees collected under development agreements.

C. " Public Facilities" includes public improvements, public services and community amenities.
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Section 3. 36. 030 Establishment of Development Impact Fees.

A. Development impact fees are hereby established in the following categories:
1) Law Enforcement Facilities;
2) Fire Suppression Facilities, Vehicles and Equipment; 3) Local Circulation Systems ( Streets, Signals, Drainage and Bridges); 4) Regional Circulation Systems
5) Local and Regional Flood Control Facilities;
6) General Facilities, Vehicles and Equipment;
7) Library Facility and Collection;
8) Public Use (Community Center) Facilities; and
9) Park Facilities Development.

B. The fees shall be collected as a condition of issuance of building occupancy for development within the City to finance the cost of certain identified public facilities and improvements required by new development as identified in the 2023 DIF Report.

C. The City Council shall, by a City Council Fee Resolution, set forth the specific amount of the fees, describe the benefit and impact area on which the development impact fees are imposed, list the specific public improvements to be financed, describe the estimated cost of these facilities, describe the reasonable relationship between these fees and the various types of new developments and set forth the time for payment.

D. The City Council shall periodically review these fees to determine whether the fee amounts are reasonably related to the impacts of development and whether the described public facilities are still needed. The City Council shall make findings with respect to any portion of the fee remaining unexpended or uncommitted in its account five ( 5) or more years after deposit of the fees to identify the purpose to which the fees are to be put and to demonstrate a reasonable relationship between the fee and the purpose for which they were charged, consistent with the requirements of Government Code Section 66001( d), e) and ( f).

Section 3. 36. 040 Fee Adjustments.

A. The fees imposed by this Chapter shall be adjusted annually in November of each year, beginning November 2024 using the California Construction Cost Index. This adjustment shall not apply to fees which are based on variable factors which result in automatic adjustments or those which specifically indicate otherwise, and shall be subject to the requirements of Government Code Section 66018 or otherwise as required by law. 6-
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B. The amount of each category of fee established pursuant to this Ordinance may be more specifically set and adjusted periodically by resolution of the City Council, with this Ordinance being considered as enabling and directive.

Section 3. 36. 050 Creation of Special Accounts.

Each fee collected pursuant to this Ordinance shall be deposited in a special account created to hold the revenue generated by each such fee, consistent with the requirements of Government Code Section 66006. Monies within each such account may be expended only by appropriation by the City Council for specific projects which are of the same category as that for which the money was collected.

Section 3. 36. 060 Land Use to Compute Fee. All development impact fees identified in Section 3. 36.030 and the amounts specified in the Fee Resolution are to be imposed on new development based on land use ( not zoning) of the proposed development.

For purposes of this Ordinance, the following land use designations shall apply:

A. Detached Dwelling: Projects consisting of detached residential buildings as allowed within the City' s land use designations of Agricultural Equestrian, Low Density, and some Medium Density Residential.

C. Mobile Home: Mobile home/ trailer parks, and manufactured homes in landleased communities, etc. This category does not include a manufactured home subdivision.

D. Commercial Lodging: Hotels and motels.

E. Commercial/ Office: Uses generally considered commercial.

F. Industrial: Uses generally considered industrial. This category also includes educational and religious establishments.

The land uses set forth in this section shall be used in the computation of the fees required to be paid in connection with new development and in the amounts specified in the Fee Resolution. Public properties shall be classified into the category of use as between residential, commercial, or industrial, and shall pay the fee pursuant to that classification, as determined by the Community Development Director.

Section 3. 36. 070 Payment of the Fee.

A. Except as required by Government Code Section 66007, development impact fees for all development projects shall be paid prior to issuance of certificate of building occupancy.

B. The fees imposed pursuant to this Ordinance shall be calculated on the basis 7-
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of land use, evaluated on the basis of acreage, by dwelling unit, or by square footage of construction, as indicated in the 2023 DIF Report, or otherwise as that may be revised and amended under the authority of the City Council.

Section 3. 36. 080 Development Impact Fee Exemptions and Exceptions.

A. Residential Building Expansion. No development impact fee for residential building expansion shall be required on any new addition, expansion or incidental construction to an existing residential building when the new construction consists of a total of less than five hundred ( 500) square feet of an enclosed structure which requires a building permit to construct, and the Community Development Director finds that the expansion will not result in an increase of the number of dwelling units originally permitted for the residential building. When the new residential construction consists of a total of five hundred ( 500) square feet or more of an enclosed structure which requires a building permit to construct, and the Community Development Director finds that the expansion will not result in an increase of the number of dwelling units originally permitted for the residential building, the development impact fee for the square footage of residential expansion above four hundred ninety- nine ( 499) square feet shall be required in accordance with this Ordinance and the Fee Resolution.

B. Building Remodeling. Where a building permit is issued to remodel an existing structure for the same occupancy type, development impact fees shall not be required.

Where the remodeling work will alter the occupancy type of the building, resulting in a higher intensity of use as determined by the Community Development Director, development impact fees shall be required as specified in this Ordinance and the Fee Resolution. This section does not include projects which constitute an expansion of the previous use.

C. Building Reconstruction. Where a building permit is issued to reconstruct or replace an existing structure and the new structure does not increase the square footage of the existing structure, development impact fees shall not be required. If the size of the new structure is larger than that of the existing structures, development impact fees shall be required in accordance with this Ordinance and the Fee Resolution.

D. Building Relocation. Where a permit is issued to relocate a structure from one location in the City to a new location within the City, and the Community Development Director finds that no new impacts are created, development impact fees shall not be required.

E. Accessory dwelling units. Accessory dwelling units ("ADUs") that are less than 750 square feet shall not be charged development impact fees. For an ADU that is 750 square feet or larger, the ADU will be charged fees proportionately in relation to the square footage of the primary dwelling unit. Notwithstanding the foregoing, ADUs shall be subject to impact fees as allowed by Government Code Section 65852. 2, as it may be amended from time to time.
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F. Timing Of Permit Application. Development impact fees in effect at the time of building permit application shall continue to apply on any development project where the Building Official finds and determines that a complete building permit application has been submitted and accepted by the City of Highland, and that through no fault of the developer, the permit was not issued prior to the effective date of the development impact fees as specified in this Ordinance and the Fee Resolution.

Section 3. 36. 090 Developer Construction of Facilities.

Whenever a developer is or has been required, as a condition of approval of a development permit, to construct a public facility which is the subject of this Ordinance, and which facility is determined by the City to have supplemental size, length or capacity over that needed for the impacts of that development, and when such construction is necessary to ensure efficient and timely construction of the facilities network, a reimbursement agreement with the developer and a credit against the fee, which would otherwise be charged pursuant to this Ordinance on the development project, shall be offered. The reimbursement and credit amount shall not include the portion of the improvement needed to provide services or mitigate the need for the public facility or the burdens created by the development project. The specific procedures for reimbursements and credits may be adopted by Resolution of the City Council, with this Ordinance being considered as enabling and directive.

Section 3. 36. 100 Calculation of Development Impact Fees Based Upon Special Circumstances Related to Intensity of Use.

A. Where in the opinion of the City Manager, or his designee, a development project is certain to have impacts on those facilities and improvements identified in the 2023 DIF Report and Master Facilities Plan that is disproportionate to the square footage of the building to be constructed by virtue of the proposed development project, development impact fees may be calculated based upon the City Manager' s determination of actual impacts in each of the categories in which development impact fees are collected. The City Manager' s determination must be based upon objective criteria, such as trip generation rates specific to the type of development proposed.

B. In each instance where the City Manager, or his designee, makes a calculation based upon his authority herein granted, the criteria upon which that calculation is based shall become the criteria used for all similarly situated development projects thereafter. In implementing this provision, the City Manager is directed to maintain a record of all decisions made under his authority, and to use that record as a guideline for future decisions. The City Manager shall make a recommendation to the Public Works Subcommittee of the City Council which brings its recommendation to the City Council for final approval determination of the development impact fees.

C. In all instances where the City Council determines and imposes development impact fees according to its authority granted herein, that calculation and determination shall be subject to legal challenge as provided by State law, as set forth in Government Code Sections 66020 et seq.
9-
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Section 3. 36. 110 Applications to Waive, Adjust or Reduce Fees.

A. A developer of any development project subject to the fees described herein may apply to the City Council for a reduction or adjustment to the fees, or a waiver of the fees, based upon the absence of any reasonable relationship or nexus between the impacts of that development and either the amount of the fees charged or the type of facilities to be financed The application shall be made in writing and filed with the City Clerk not later than:
i) ten ( 10) days prior to the public hearing on the development permit application for the project, or ( ii) if no development permit is required or no public hearing is required to be held, at the time of the filing of the request for a building permit. The application shall state in detail the factual basis for the claim of waiver, reduction, or adjustment. The City Council shall consider the application at the public hearing on the permit application or at a separate hearing held within sixty ( 60) days after the filing of the fee adjustment application, whichever is later. The decision of the City Council shall be final. If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment or reduction of the fees.

B. The City Council may, from time to time and as the need may arise, set forth, by Council Resolution, specific limitations which will apply to reductions, adjustments, waivers or deferrals of development impact fees which may be made pursuant to this Section.

C. If a fee exemption is granted pursuant to Section 3. 36. 070, or a fee reduction, adjustment or waiver is granted pursuant to this Section, any subsequent change or intensification of the use or uses of the property or any expansion of the structures on the property, shall invalidate the fee exemption, fee reduction, adjustment or waiver, and the applicant shall be subject to the development impact fee requirement applicable to the entire development based on the fee in effect at the time of the change or expansion, less any amount previously paid.

D. If a fee exemption, fee reduction, adjustment or waiver is not granted, then upon the payment of the required fees, the city shall, pursuant to Government Code Section 66020, provide the applicant a written notice of the amount of the fees or a description of the dedications, reservations, or other exactions, and shall also provide notification that the ninety-day protest period has begun." Section 5. Relationship to Existing Fees. The fees established by this Ordinance shall supersede all previously established fees for the same development impact fee categories.

Section 6. Superseding Ordinance Nos. 309 and No. 422. The provisions of this Ordinance shall supersede and control over the provisions of Ordinance Nos. 309 and 422 upon the effective date of this Ordinance.

Section 7. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase of this ordinance be declared unconstitutional or invalid for any reason, such declaration shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this and each section, subsection, 10-
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phrase or clause thereof irrespective of the fact that any one or more sections, subsections, phrase or clauses be declared unconstitutional on their face or as applied.

Section 8. Adoption and Effective Date. This Ordinance and Development Impact Fees shall apply to the issuance of any building permit for a development project issued sixty 60) days following the passage of this Ordinance, except as provided in the Fee Resolution.

Section 9. Publication. The City Clerk is hereby ordered and directed to certify the passage of this Ordinance by the City Council of the City of Highland, California and cause the same to be published in accordance with State law.

Section 10. Actions to effectuate. The City Manager is hereby authorized and directed to take other actions on behalf of City, which are not expressly and specifically reserved for the City Council, to implement and effectuate this ordinance.

The Ordinance was introduced at a regular meeting of the City Council on the day of 2023, and adopted at a regular meeting of the Council held on the day of 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED AND ADOPTED this day of 2023.

Larry McCallon
Mayor
ATTEST:

Betty Hughes, MMC
City Clerk
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ATTACHMENT 4
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1)

6. tHisA
desert valleys builders association
2023 BOARD OF DIRECTORS

PRESIDENT
Todd Hooks
Agua Caliente Band of
Cahuilla Indians
jrnrnedlate Past President
Deborah McGarrey
Southern California Gas Company July 21 2023 Pi VICE PRESIDENT Tom Dubose
Dubose Design Group, Inc. City of Highland SECRETARY/ TREASURER Pedro Rincon Joseph A. Hughes, City Manager
Osborne Rincon CPAs 27215 Base Line

VICE PRESIDENT
OF ASSOCIATES Highland, CA
Allan Levin
Allan Levin& Associates
CHIEF EXECUTIVE OFFICER Dear Mr. Hughes,
Gretchen Gutierrez
DIRECTORS Thank you for providing the Desert Valleys Builders Association with the Fred Be1V2023 PAC Chairman opportunity to review and comment on the City of Highland' s Nobell Energy Solutions Development Impact Fee Calculation and Nexus Report, dated July 6, 2023. Brian Benedetti p P Brian Benedetti Construction Upon completion of our review, we have several items of concern we wish Mark Benedetti Dede Callanan to share with you.

CalBest Title
Mario Gonzales
GHA Companies Page 15, Table 2- 1, Detailed Land Use Inventory Joe Hayes Why is there a difference between Detached Dwelling Units 12, 866 First Bank Jeremy Roos in this table, while Table 2- 3 uses 10, 862 detached dwelling units? FreeVolt
Dave Lippert

Page 34 ends

Paul Mahoney The city plans on relocating an existing fire station. What becomes PMA Advertising of that location? Will there be opportunities for the cityto Bruce Maize PP recoup Orr Builders some of the transitional costs? If so, how much? Russ Martin
Mission Springs Water
District Page 43, first paragraph, Local and Regional Circulation Systems Dan Olivier
Nethery Mueller Olivier There are two different current daily trip-miles. Which is it? Alan Pace 534, 703 or 524, 703?
Petra GeoSciences
Kevin Pillow
AC Houston Lumber
John Powell, Jr.

Coachella Valley Water District
Mike Rowe
MSA Consulting
Phil Smith
Sunrise Company
Alissa Vatter
Fidelity National Title
Jeff Wattenbarger
Wattenbarger Construction
34360 Gateway Drive • Palm Desert • CA 92211
760) 776-7001 office • ( 760) 776-7002 fax
www.TheDVBA. org
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4:
41611011311
desert valleys builders association
A
2023 BOARD OF DIRECTORS

PRESIDENT
Todd Hooks
Agua. Caliente Band of
Cahuilla Indians
Immediate Past President
Deborah McGarrey
Southern VICE PRESIDENT California Gas Company Page 47, Table 5- 3, Detail of Circulation System Local Marginal NeedTom Dubose based impact Fees for Specific Commercial Uses Dubose Design Group, Inc.

SECRETARY/ TREASURER Minor error Mobile Home Dwelling Unit Cost per Dwelling Unit Pedro Rincon shows $ 1, 494; however, our math shows$ 1, 473.

Osborne Rincon CPAs

VICE PRESIDENT

OF ASSOCIATES
Allan Levin
Allan Levin& Associates
CHIEF EXECUTIVE OFFICER Page 50, Table 5- 5, Measure I- assisted Regional Circulation System NeedGretchen Gutierrez based Impact Fees for Specific Commercial Uses DIRECTORS Minor error Mobile Home Dwelling Unit Cost per Dwelling Unit Fred BelV2023PACChairman shows $ 8, 608 however our math shows $ 8, 587. Nobell Energy Solutions Benedetti Benedetti How were "Additional Trip- miles" determined? Brian Benedetti Construction
Mark Benedetti Why was " Additional Trip- miles" used and not "Average Distance" Dede Callanan or " Adjusted Trip- ends"?
CalBest Title
Mario Gonzales
GHA Companies Page 71, Table 8- 3, Establishment of the Library facilities Standard and Joe Hayes Cost per Person to Maintain the Standard First Bank Jeremy Roos There appears to be a mistake in the math in this paragraph.

FreeVolt
o 125, 000/ 56, 546 = 2. 21 not 2. 40 Dave Lippert
Lippert Construction, Inc o $ 88. 42 per person for books, not$ 96. 13.

Paul Mahoney
PMA Advertising
Bruce Maize Table 8-4
OrrBuilders
Russ Martin Square Feet per Resident" should be " Volumes per Resident" Mission Springs Water • On the same line it should be 2. 21 volumes, not 2. 4.

District Cost per Additional Resident should be changed to $88. 42. Dan Olivier Nethery Mueller Olivier
Alan Pace Page 72, Schedule 8. 1
Petra GeoSciences
Kevin Pillow Corrections consistent with the issues above need to be made.

AC Houston Lumber
John Powell, Jr.

Coachella Valley Water District
Mike Rowe
MSA Consulting
Phil Smith
Sunrise Company
Alissa Vatter
Fidelity National. Title
Jeff Wattenbarger
Wattenbarger Construction
34360 Gateway Drive • Palm Desert • CA 92211
760) 776-7001 office • ( 760) 776-7002 fax
www.TheDVBA. org
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e) sAa%
desert valleys builders association
2023 BOARD OF DIRECTORS

PRESIDENT
Todd Hooks
Agua Caliente Band of
Cahuilla Indians
Immediate Past President
Deborah McGarrey
Southern California Gas Company Page 76, Last Paragraph • I:t

VICE PRESIDENT
Tom Dubose Where does the 1. 85- acre number come from? Dubose Design Group, Inc. o Please explain its " nexus"

SECRETARY/ TREASURER
Pedro Rincon What is the source of the 62% fee adjustment? f Osborne Rincon CPAs o What does it represent?

VICE PRESIDENT
OF ASSOCIATES o How does it relate to a park " nexus".

Allan Levin
Allan Levin& Associates

Page 77 ends

Gretchen Gutierrez How was the 1. 85 acres per 1, 000 determined? DIRECTORS How was the .5 acres per 1, 000 determined?
Fred BelV 2023 PAC Clzairman Is it true that the city has a funding source to improve the Parks and Nobell Energy Solutions Brian Benedetti Recreation level of service?
Brian Benedetti Construction
Mark Benedetti
Dede Callanan Page 79, Table 10- 6, Page 82, 83 Schedules 10. 1, 10. 2 CalBest Title Only detached single family dwellings are eligible for a 3. 00 acre Mario Gonzales
GHA Companies per 1000 residents designation ( g QuimbyAct, land only).

Joe Hayes o Park improvements will be limited to 0. 956 acres per 1, 000.

Jerem
First Bank
Roos We believe this fee will be lower than the 62% Impact Fee Y FreeVolt Adjustment @ $ 3, 790 per single family detached residential Dave Lippert
construction. Lippert Construction, Inc
Paul Mahoney Both Single Family attached, and Mobile Homes will be required to PMA Advertising
Bruce Maize use 0. 956 acres per 1, 000 residents mechanism for both land and Orr Builders park improvements.

Russ Martin
Mission Springs Water
District Again, thank you for providing the Desert Valleys Builders Association this Dan Olivier
opportunity to review and comment on the City' s Development Impact Fee Nethery Mueller Olivier Alan Pace Study. We look forward to receiving the City' s responses and changes.

Petra GeoSciences
Kevin Pillow
AC Houston Lumber Hfiterelyo John Powell, Jr.

Coachella Valley Water District -. 101101111i"
Mike Rowe
Phil
MSA
Smith
Consulting Gret•0 -
Sunrise Company Chief - I - officer
Alissa Vatter
Fidelity National Title
Jeff Wattenbarger
Wattenbarger Construction
34360 Gateway Drive • Palm Desert • CA 92211
760) 776-7001 office • ( 760) 776-7002 fax
www.TheDVBA. org
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ATTACHMENT 5
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TREH PARTNERS XV, EI E
4 Corporate Plaza Drive, Suite 210 Newport Beach, CA 92660 Telephone 949. 631. 6620 Facsimile 949. 706. 9013
July 17, 2023
Lawrence A. Mainez
City of Highland
27215 Base Line
Highland, CA 92346
Re: Highland DIF 2023- 2024 Increase
Per our conversation I am writing to you on behalf of TREH Partners to request the balance of our development be locked in at the 2022- 2023 fee schedule. TREH Partners has a long track record of providing high- quality well- built developments in the city of Highland.

We negotiated and agreed to an exclusive development agreement with Highland for the 21 acres in the " Golden Triangle." Recall this was after the original developer could not get a deal done. TREH Partners spent significant resources on getting to an approved purchase and sale agreement with the county flood control district. In addition, we were able to get a plan approved through FEMA for all 21 acres to remove the property from a critical flood plain designation. We also have come to an agreement with the Federal Fish and Wildlife endangered species division to mitigate for the SBKR. During this processing period, California added the SBKR to its list of endangered species.

As you know we had plans submitted, reviewed, and approved for permit on the 11- acre Retail phase. We processed site plans, elevations, finish schedules, and building layouts for Phase 1 and Phase 2 together. All of the plans for both phases went to the planning commission and city council with a number of city- requested changes and modifications. Both phases were approved simultaneously and we started on construction documents. We have approved construction drawings for both phases 1 & 2 for all of the on and off site utilities. We also have approved construction plans for the retail buildings in Phase 1 and plan to start construction next month.

TREH would have had construction plans by now for Phase 2, but for the State' s long arduous, and difficult process to mitigate for the SBKR.

Given the amount of time, capital, and commitment we have put into this project, we are asking to have our DIF fees locked in for our residential 2nd phase of the project at the 2022- 2023 rates.

Please call me with any questions, thank you.

Thank you,
TREH Partners XV, LLC
Edwar D. Horovi
Managing Member
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ATTACHMENT 6
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Findings in Support of Continuing the City of Highland' s Policy to Impose Residential Development Impact Fees on a per Unit Basis
AB- 602 ( Gov' t C. sections 66016. 5( a)( 5)( A) and ( B)) states that if the City adopts a calculation and nexus study after July 1, 2022, it must either " calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development" or make the following findings:
i) An explanation as to why square footage is not an appropriate metric to calculate fees imposed on housing development projects.
ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development. iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.

There is no requirement for the City to have a financial element in the City' s General Plan document. Thus, a properly calculated Development Impact Fee Calculation and Nexus Report functions as the de-facto financial plan in support of the City's General Zoning Plan. It identifies the anticipated service demands by infrastructure based upon averages and lays out a fair and reasonable method with which to finance the required capital projects and acquisitions necessary to accommodate those anticipated new service demands.

This Report indicates that the City of Highland has 311 acres zoned for future detached dwellings. At approximately 5.03 detached dwelling units per acre, this equates to an additional 1, 563 detached dwellings to be constructed by General Plan build- out of the City. The City does not, however, have any information as to how many square feet any of these 1, 563 detached dwelling units will be because that is, within applicable zoning, determined by the developers of the various parcels. noun: presumption; plural noun: presumptions— an idea that is taken to be true, and often used as the basis for other ideas, although it is not known for certain.
-355-
This Report employs the most defensible empirical sources, appropriate to the demands of that particular infrastructure to determine the average demands of an average detached dwelling.

These sources determine demand by an average detached dwelling but do not produce this demand data for various sized detached dwellings. Such data is simply not available.

The amount and complexity of any city's infrastructure defines ( in all or part) the Level of Service LOS) of that infrastructure, not just currently but in perpetuity. This makes the one-time DIF financing of any city infrastructure that much more important. It must balance new development with the additional police responses given the desired police staffing standard. It will take a combination of additional law enforcement station space, response and support vehicles and specialty equipment to support the officers required by new development. The importance of having a properly calculated and documented DIF schedule in order to accommodate development- related demands cannot be over- stated. The same concept holds true for the two labor- intensive public safety services and the infrastructure intensive services such as the street circulation system and the storm drainage system.

Police and Fire Calls- for-Service ( CFS) - For the calculation of Police and Fire demand data, RCS used Highland calls- for-service matched up with the City' s Land- Use GIS database. Again, the City does not know what size these detached dwellings are so could not possibly determine the total square feet of 1, 563 detached dwellings or the individual square footage of each of those 1, 563 dwellings. GIS data does not include the size of each residential dwelling in the City.

Circulation Needs - According to the volume of empirical data collected by the highly respected Institute of Traffic Engineering ( ITE), an average detached dwelling generates approximately 9. 5 trip- ends per day, but the ITE does not offer any distinction between small and large homes, because such data does not exist in their database.

Storm Drainage - The storm runoff from a 1, 800 square foot single- floor residence is the same as the storm runoff from a 3, 600 square foot two-story building. Both have a 1, 800 square foot pad, so a 50% fee for the 1, 800 square foot home compared to the 3, 600 square foot home would be inequitable and unsupported by data.

Quality of Life Infrastructure ( parks, aquatic facilities, libraries and community centers) Quality of Life standards are based upon current population numbers. These impact fees are generally based upon census data that identifies average number of persons per type of dwelling unit. In Highland, those future figures are 3.232 persons per detached dwelling, 3. 55 per attached dwelling unit and 2. 315 per mobile home. General Plan data does not determine these figures by size of dwelling unit and thus they represent the most empirically driven data.

Anecdotally there are likely 1, 300 square foot dwellings with anywhere from one, two or six residents just as there can be in a 2, 600 square foot home. Therefore, an average based on type of dwelling is far more empirical than dividing the average cost by some unsubstantiated average dwelling size. By doing so, larger residential dwellings could be treated unfairly if they end up being assessed a greater amount in order to balance or subsidize the smaller detached dwelling units based upon the presumption ( non- empirical data) that these smaller detached dwelling units somehow create lesser dwelling densities than would a larger unit. Such a subsidy flies in the face of The Mitigation Fee Act.
-356-
Importance of a Static or Average Development Impact Fee Schedule. The City must be able to depend on the collection of sufficient impact fee revenues with which to finance development- generated projects necessary to provide new development with adequate and sufficient service levels without decreasing the existing levels of service for the rest of the community. This assurance will be diminished should the City choose a per residential square foot impact fee schedule. With a flat fee representing an average demand per unit, the City can have greater confidence in receiving the DIF revenue necessary to respond to those 311 acres zoned for future detached dwellings, regardless of their size.

The City' s development practices neither favor nor penalize any one land- use over another.

Since the City does not impose per square foot- based impact fees, it also does not apply such fees on any room addition to a residential dwelling.

In conclusion, given the empirically- based and significant effort spent on identifying the number and capacity of increasing infrastructure projects needed to accommodate the planned-for and anticipated new development and the fair means demonstrated in the calculation and Report, the City has determined that the empirically- driven per Unit residential fee is the most appropriate metric with which to calculate and fairly impose the City' s schedule of impact fees. -357-
ATTACHMENT 7
-358-
From: Ray Dorame< rdoramePmastercraftresidential. com>
Sent: Monday, July 17, 2023 11: 50 AM
Subject: RE: [ External] Notice of Public Hearing- Development Impact Fee Adjustment EXTERNAL EMAIL: Do not click on links or open attachments unless you know the content is safe.

Alondra,
Is the new Diff amount$ 32, 658 or$ 35, 804?
Raymond Dorame, Executive Vice President

MASTERCRAFT RESIDENTIAL
3165 Red Hill Avenue, Costa Mesa, CA 92626
Phone ( 949) 252- 1122 Ext. 132• Fax ( 949) 252- 1188
rdorameftmastercraftresidential. com
www.mastercraftresidential. com
Sent: Monday, July 17, 2023 10: 36 AM
Subject: [ External] Notice of Public Hearing- Development Impact Fee Adjustment Importance: High
To Whom it May Concern,
Please be informed that the following meeting has been scheduled for discussion and possible action concerning the City' s development impact fees adjustment for 2023:

City Council Meeting
Time: Tuesday, August 8, 2023 at 6: 00PM
Location: Highland City Hall, Council Chambers
A copy of the nexus study can be found on the City's website at https:// www.cityofhighland. org/ 209/ Public- Notices
If you are interested in receiving a copy of the staff report for the August 8, 2023 City Council meeting, please contact me and I will email you a copy of the staff report when it is available on Thursday, August 3, 2023.
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ATTACHMENT 8
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7/ 11/ 23, 10: 14 AM DGS California Construction Cost Index CCCI http:// www. ca. gov)
f y G•
mailto:?
subject= DGS% 20California% 20Construction% 20Cost% 20lndex% 20CCCI& body=% Oahttps% 3A%2F% 2Fwww. dgs.ca.gov% 2FRESD% 2FResources% 2FPageContent% 2FReal- Estate- Services- Divi sion- Resources- List- Folder% 2FDG S- California- Construction- Cost- Index- CCCI% Oa% Oa) Careers(/ OHR/ Careers) Translate
bss (https:// www. dgs. ca. gov/ RESD)LJ
HOME(/) REAL ESTATE SERVICES DIVISION( HTTPS:// WWW. DGS. CA. GOV/ RESD) RESOURCES( HTTPS:// WWW. DGS. CA. GOV/ RESD/ RESOURCES) DGS CALIFORNIA CONSTRUCTION COST INDEX CCCI( HTTPS:// WWW. DGS. CA. GOV/ RESD/ RESOURCES/ PAGE- CONTENT/ REAL- ESTATE- SERVICES- DIVISION- RESOURCESLIST- FOLDER/ DGS- CALIFORNIA- CONSTRUCTION- COST- INDEX- CCCI) DGS California Construction Cost Index CCCI
Client agencies can find current construction cost index for California by the Real Estate Services Division.

The California Construction Cost Index( CCCI) is developed based upon Building Cost Index( BCI) cost indices average for San Francisco and Los Angeles ONLY as produced by Engineering News Record( ENR) and reported in the second issue each month.

The current five year CCCI table is updated the 2nd half of the month for the current month. The ENR BCI reports cost trends for specific construction trade labor and materials in the California market and does not reflect current market bidding environment. Prior to July 1991, CCCI was recorded quarterly, all months post July 1991 are calculated based on the ENR BCI reports and recorded for each month. 14. 67% from July 2021 to June 2022 California Construction Cost Index 2021- 2025

4. 91% from July 2022 to June 2023
Month 2025 2024 2023 2022 2021
January 9246 8151 7090
February 9166 8293 7102
March 9118 8736 7130
April 9026 8903 7150
May 9621 9001 7712
June 9508 8925 7746
July 9110 7892
August 8729 8122
September 8604 7900
October 8712 8080
November 8765 8141
December 8823 8072
https:// www. dgs. ca. gov/ RESD/ Resources/ Page- Content/Real- Estate- Services- Division- Resources- List- Folder/ DGS- California- Construction- Cost- Inde... 1/ 3 -361- 7/ 11/ 23, 10: 14 AM DGS California Construction Cost Index CCCI Month 2025 2024 2023 2022 2021
Annual%* 9. 3% 13. 4%
Annual Percentage is calculated from December to December.

HISTORIC CALIFORNIA CONSTRUCTION COST INDEX
Expand All
CALIFORNIA CONSTRUCTION COST INDEX 2016- 2020
Month 2020 2019 2018 2017 2016
January 6995 6684 6596 6373 6106
February 6945 6700 6596 6373 6132
March 6947 6616 6596 6373 6248
April 6955 6841 6596 6461 6249
May 6958 6852 6596 6455 6240
June 7041 6854 6598 6470 6238
July 6984 6854 6643 6474 6245
August 6988 6823 6613 6620 6244
September 7036 6814 6674 6620 6267
October 7120 6851 6679 6596 6343
November 7123 6895 6679 6596 6344
December 7120 6924 6684 6596 6373
Annual%* 2. 8% 3. 6% 1. 3% 3. 5% 4. 4%
Annual Percentage is calculated from December to December.

CALIFORNIA CONSTRUCTION COST INDEX 2011- 2015
CALIFORNIA CONSTRUCTION COST INDEX 2006- 2010
CALIFORNIA CONSTRUCTION COST INDEX 2001- 2005
CALIFORNIA CONSTRUCTION COST INDEX 1996- 2000

QUESTIONS AND RESOURCES
Have questions about the CCCI, please contact us.
https:// www.dgs. ca.gov/ RES D/ Resources/ Page- Conte nt/Rea I- Estate- Services- D ivision- Resou rces- List- Folder/ DGS- Cal iforn ia- Construction- Cost- I nde... 2/ 3 -362-

STAFF REPORT

TO THE CITY COUNCIL
DATE: September 12, 2023
FROM: Joseph Hughes, City Manager
REVIEWED BY: Carlos Zamano, Public Works Director/City Engineer ZA__ PREPARED BY: Sonja Flynn, Engineering Technician II $ f_ SUBJECT: Measure I Capital Project Needs Analysis ( 2024/ 25 - 2028/ 29) RECOMMENDATION: Approve the Five -Year Capital Project Needs Analysis (2024/25- 2028/29) for the Measure I Major Street and Freeway Interchange Programs FISCAL IMPACT: The Capital Project Needs Analysis is a planning guide for the City's projected use of Measure I funds in the Major Street and Freeway Interchange Programs. Since Measure I Funds are restricted to roadway/ traffic/ transit type improvements, approval of the Analysis will not affect other City services.

PUBLIC NOTICE: The agenda for this item was posted at the three locations per Resolution No. 2011- 047 and on the City's website.

BACKGROUND: The Measure I Strategy Plan requires each local jurisdiction to annually adopt a five- year Capital Project Needs Analysis ( CPNA) to include arterial street projects and interchange projects that can be realistically funded with Measure I Arterial Sub -Program Funds or Valley Freeway Interchange Program Funds.

Each year, SBCTA allocates 6. 777% of Measure I Arterial revenues to the City of Highland.

SBCTA keeps the City' s allocated Arterial funds until claimed by the City to pay for SBCTA' s share of an arterial project that is listed in the SBCTA Nexus Study.

The City' s allocated Arterial funds can also be used on a temporary basis as an internal loan to pay for the City' s share of an interchange project. Under this arrangement, the City needs to eventually pay back the loan with Development Impact Fees so as to free up the allocated Arterial funds to pay for SBCTA' s share of future City arterial projects.

Approved Motion Second
Denied Ayes
Continued Noes
Tabled Abstain
Absent
U I/
City Clerk Ci
Agenda Item No.

File No.
7 -1-
In the past 11 years ( FY2010/ 11 thru FY2023/ 24), SBCTA allocated $ 17, 641, 193 Measure I Arterial funds to the City of Highland. Based on SBCTA estimates, an additional $ 11, 601, 068 will be allocated to the City in the next 5 years ( FY2024/ 25 thru FY2028/ 29). Therefore, the total amount of Measure I Arterial funds that are available for programing in the City' s CPNA is anticipated to be $24, 059, 199.

The proposed CPNA for FY 2023/ 24 - 2027/28 includes one freeway interchange project, SR210/5th Street Interchange Project and one arterial project, the Victoria Avenue Improvements Project.

The 5th Street Interchange Project is in the preliminary planning stage. It consists of widening of 5th Street/ Greenspot Road between the City Creek Bridge and the westbound ramps and widening of all on and off -ramps. This project is not fully funded. The total estimated project cost is $ 15, 827, 000 with a funding breakdown as follows:

SBCTA 5, 590, 000 ( Valley Freeway Interchange Program) IVDA Agreement 2, 649, 000
2007 RDA Bond Proceeds 376,000
Caltrans 1, 250, 000 ( Cooperative Agreement)
DIF Loan 4, 070, 000 ( Future allocations of Measure I Arterial Program funds) DIF 697, 000
ARPA 624, 000
Other 571, 000 ( Cities of San Bernardino and Redlands) 15, 827,000 ( Fund balance)
The estimated fair share costs from the cities of San Bernardino and Redlands are $ 450, 000 and 121, 000, respectively. City staff will seek separate cooperative agreements with these funding agency partners to help reduce the project shortfall. City staff will continue to go after future grant opportunities to reduce/eliminate need for another DIF Loan from SBCTA.

The Victoria Avenue Improvements Project between 3rd Street and 9th Street includes drainage, pavement reconstruction, traffic signal modifications, curbs, gutters, driveways, sidewalk, raised median, undergrounding of existing overhead utility lines, and striping. Design of the project is 85% complete. The current project cost estimate is approximately $ 10 million. The City was awarded $ 2 million of federal funds under the 2022 Appropriations Act which will be used in the construction phase. The total estimated project cost breakdown is as follows:

Community Credit Fund
2022 Appropriations Earmarks
SBCTA
Indian Gaming Special District Fund
7, 318, 000
2, 000, 000
536, 000 ( ValleyArterial Sub -Program)
132, 000
9, 986, 000
Attachments: 2025- 2029 CPNA Resolution
2025- 2029 Capital Project Needs Analysis SR-210 & 5th Street 2025- 2029 Capital Project Needs Analysis Victoria Avenue Improvements Project 2025- 2029 CPNA Allocations
2025- 2029 CPNA Arterial Revenue Estimate
MASBCTA ( formerly SANBAG)\ 2025- 2029 MSR I CPNA\ 2025- 2029 CPNA Staff Report 9. 12. 23. doc -2-
RESOLUTION NO. 2023-

RESOLUTION OF THE COUNCIL OF THE CITY OF HIGHLAND, CALIFORNIA,

ADOPTING THE MEASURE I FIVE- YEAR CAPITAL PROJECT NEEDS ANALYSIS FOR FISCAL YEARS 2024/ 2025 THROUGH 2O28/ 2029.

WHEREAS, San Bernardino County voters approved passage of Measure I in November 2004, authorizing the San Bernardino County Transportation Authority to impose a one- half of one percent retail transactions and use tax applicable in the incorporated and unincorporated territory of the County of San Bernardino; and
WHEREAS, revenue from the tax can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plan set forth in Ordinance No. 04- 01 of the Authority; and
WHEREAS, the Strategic Plan requires each local jurisdiction applying for revenue from certain Measure I Programs to annually adopt and update a Five -Year Capital Project Needs Analysis; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Highland, California, that the Measure I Five -Year Capital Project Needs Analysis for Fiscal Years 2024/ 2025 through 2028/ 2029, attached to this resolution as Exhibit A, is hereby adopted.

PASSED AND ADOPTED at a meeting of the Council of the City Highland held on this 12`h day of September, 2023.

Larry McCallon
Mayor
ATTEST:

Betty Hughes, MMC
City Clerk
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-7-

STAFF REPORT

TO THE CITY COUNCIL
DATE: September 12, 2023
FROM: Joseph A. Hughes, City Manager
PREPARED BY: Chuck Dantuono, Director of Administrative Services/ City Treasurer SUBJECT: Recruitment for a new City Manager.

RECOMMENDATION: Staff recommends the City Council refer this item to the Finance/ Personnel Subcommittee to engage the services of a professional recruiting firm.

FISCAL IMPACT: None.

PUBLIC NOTICE: The agenda for this item was posted at the three required locations.

BACKGROUND: On August 31, 2023, the City Manager submitted his Notice of Retirement, to be effective December 29, 2023. Staff will need direction on how to proceed with the recruitment of a new City Manager. Staff is recommending that the City Council refer this item to the Finance/ Personnel Subcommittee. Staff will work with the Subcommittee to engage the services of a professional recruiting firm.

Approved Motion
Denied Ayes
Continued Noes
Tabled Abstain
Absent
C./
City Clerk
Second Agenda Item No.

File No.

City Manager
-1-

STAFF REPORT

TO THE CITY COUNCIL
DATE: September 12, 2023
FROM: Joseph A. Hughes, City Manager
REVIEWED BY: Betty Hughes, MMC, City Clerk
PREPARED BY: Alondra Munoz, Deputy City Clerk
SUBJECT: City Manager Report and Comments
Work Program, Regional/ Legislative/ Development Issues, Subcommittees, etc.)
RECOMMENDATION: Discussion and possible action.

Approved Motion
Denied Ayes
Continued Noes
Tabled Abstain
Absent
Second Agenda Item No.

File No.

City Clerk ty Manager
-1-

STAFF REPORT

TO THE CITY COUNCIL
DATE: September 12, 2023
FROM: Joseph A. Hughes, City Manager
REVIEWED BY: Betty Hughes, MMC, City Clerk
PREPARED BY: Alondra Munoz, Deputy City Clerk
SUBJECT: Council Member Comments
Agency/ Committee/ AB1234 Reports, District Updates, etc.) RECOMMENDATION: Discussion and possible action.

Approved Motion Second
Denied Ayes
Continued Noes
Tabled Abstain
Absent
d4,
Y
City Clerk
Agenda Item No.

File No,
City Manager
-1-

Highland City CouncilSeptember 12, 2023

Highland City Council
September 12, 2023