2025-11-17 Council Agenda
AGENDA - 11-17-25.PDF
November 17 Agenda Packet
CC PACKET - 111725.PDF
Shuster Advisory City Investment PowerPoint Presentation INVESTMENT PRESENTATION.PDF
Development Impact Fee PowerPoint Presentation
DIF PRESENTATION 11.17.25.PDF
1. Documents:
1.I.
Documents:
1.II.
Documents:
1.III.
Documents:
COUNCIL REGULAR MEETING AGENDA
Tim Hepburn, Mayor
Wendy Lau, Council Member
Steven Frank Johnson, Council Member
Rick Crosby, Council Member
Meshal "Kash" Kashifalghita, Mayor Pro Tem
Monday, November 17, 2025
Closed Session at 5:30 PM
Regular Meeting at 6:30 PM
La Verne City Hall - Council Chambers,
3660 D Street, La Verne, CA 91750
In compliance with the American Disabilities Act, any person with a disability who requires a modification or accommodation to participate in a meeting should contact the City Clerk’s Office at (909) 596-8726 at least 48 hours prior to the meeting. Regular Meetings are held on the 1st and 3rd Monday of every month.
Individuals can email their comments to the City Clerk's Office at [email protected] up to noon on the day of the meeting. Those comments will be shared with City Council in advance of the City Council meeting and included as part of the permanent record. Please be advised that public comments submitted by emails or any other format to the City are public records that will be made available for public viewing.
Individuals who wish to share their comments with Council during the meeting may do so in a variety of ways:
• Attend the City Council Meeting in person and fill out a comment card or raise your hand to request to comment on the current agenda item(s).
• Participate via Zoom, by visiting laverneca.gov/zoom where you will be automatically redirected to the meeting or call into the meeting via phone 1-669-900-6833 and enter ID 873 2335 1668 when prompted. Public comments via Zoom may be accepted for the agenda items listed within the Consent Calendar, Public Hearing and Discussion Calendar sections of the agenda. Zoom participants who violate decorum protocols will be called to order by the presiding officer and if a violation continues, will be muted by direction of the presiding officer. • Once items are considered by the City Council, no further public comment on that matter will be accepted. A time limit of 3-minutes is set for all public comments.
Council Meeting Decorum: Per the City’s Rules for Decorum, all Speakers and Members of the Audience are to conduct themselves with decorum and not engage in willful conduct which interrupts the meeting or with the orderly conduct of the meeting.
CLOSED SESSION AGENDA - 5:30 PM
CALL TO ORDER
ROLL CALL Council Member Steven F. Johnson, Council Member Wendy Lau, Council Member Rick Crosby, Mayor Pro Tem Meshal “Kash” Kashifalghita, and Mayor Tim Hepburn.
AGENDA City Council 11/17/2025 Page 2
CLOSED SESSION TOPIC
Conference with Labor Negotiators, pursuant to Government Code § 54957.6:
Negotiators: City Manager, Assistant City Manager, and City Attorney.
Employee Organization(s): La Verne City Employees Association, La Verne Firefighters Association, La Verne Fire Middle Management Association, La Verne Police Officers Association, La Verne Police Middle Management Association, and all Unrepresented Employees.
The City Council will recess and reconvene at 6:30 PM for the regularly scheduled City Council meeting.
REGULAR CITY COUNCIL MEETING - 6:30 PM
PLEDGE OF ALLEGIANCE
ROLL CALL Council Member Steven F. Johnson, Council Member Wendy Lau, Council Member Rick Crosby, Mayor Pro Tem Meshal “Kash” Kashifalghita, and Mayor Tim Hepburn.
PRESENTATIONS
Native American Heritage Month Proclamation - November is a month-long observance celebrating the rich traditions, histories, and contributions of Native American, Alaska Native, Native Hawaiian and affiliated Island Communities.
City Financial Investment Update - A presentation by Shuster Advisory Group, LLC, the City’s investment advisor, on the City’s investment portfolio and related financial consulting services.
ANNOUNCEMENTS OF UPCOMING COMMUNITY EVENTS
(Any person who wishes to make a brief announcement of a future community event that is open to the public may do so at this time.)
CONSENT CALENDAR
(All items on the Consent Calendar are routine and will be enacted by one motion unless a member of the Council or member of the audience requests separate discussion.)
1. City Council Minutes of the Closed Session & Regular meeting of November 3, 2025.
Recommendation: That the City Council approve the minutes.
2. Register of Audited Demands in the amount of $976,830.68, dated10/29/25.
Recommendation: That the City Council approve the demands.
3. Christmas Morning Parade Route Designation and Authorization of Paid Stipend Incentive For Employee Participation. Since 1925, the Christmas Morning event has been held in which Santa is driven through the streets of La Verne accompanied by emergency vehicles signalizing AGENDA City Council 11/17/2025 Page 3
a time for neighbors to share the tidings of the season together. To facilitate the event this year, the City Council is asked to approve designating all streets as a parade route and authorize a paid stipend for full and part-time participating City staff in order to facilitate the event.
Recommendation: That the City Council designate the streets in the City of La Verne as a parade route on Thursday, December 25, 2025, from 7 AM through 2 PM to complete the Christmas Morning Parade program and authorize the provision of a stipend for volunteers to participating full and part-time City staff.
4. 2026 Legislative Platform. The City of La Verne's Legislative Platform serves as a strategic framework for advocacy efforts, ensuring the City can respond effectively to legislation and communicate its priorities to policymakers. Upon approval, the 2026 Legislative Platform will take effect immediately, providing a clear road map for advocacy in the year ahead.
Recommendation: That the City Council approved the Legislative Platform for the 2026 legislative session.
5. Award of Contract for the Citywide Signing & Striping, and Traffic Signal Backplate Improvement Project. This action will award a construction contract to Superior Pavement Markings in the amount of $365,483.00 for CIP No. MI2402 – Citywide Signing & Striping, and Traffic Signal Backplate Improvement Project. Project Funding is provided through a combination of Gas Tax Funds (Fund 206) and Right-of-Way Funds (Fund 406) and will support miscellaneous traffic signage and striping improvements, school zone crosswalk enhancements, and traffic signal restoration at various locations throughout the City.
Recommendation: That the City Council:
1. Reject the bids submitted by Select Electric Inc. and California Professional Engineering, Inc. as non-responsive bids;
2. Award a public works construction contract to Superior Pavement Markings the lowest, responsive and responsible bidder, in the amount of $365,483.00 for the Citywide Signing & Striping Project, and Traffic Signal Backplate Improvement Project; and
3. Authorize staff to issue change orders not exceeding 10% of the construction budget for a total possible construction contract cost of $402,031.30; and
4. Authorize the City Manager to issue a purchase order to RKA Consulting Group in the amount of $45,000 for Professional Engineering and Construction Management/Inspection Services related to the project; and
5. Approve the “Citywide Signing & Striping Design Plans,” prepared by RKA Consulting Group, making the findings required under Government Code §830.6, and authorizing the City Engineer to issue clarifying revisions and field adjustments that do not materially alter the approved design intent.
6. Authorizing the Execution of a Side Letter Agreement Amending the Memorandum of Understanding Between the City of La Verne and the La Verne City Employees’ Association Regarding Upcoming Holiday Closures. The proposed side letter agreement to the Memorandum of Understanding (MOU) with the La Verne City Employees’ Association (LVCEA) will formalize City Council direction to close non-emergency public facilities in conjunction with the upcoming holiday season of Christmas and New Year’s.
Recommendation: That the City Council:
1. Authorize the City Manager to execute a Side Letter Agreement amending the AGENDA City Council 11/17/2025 Page 4
Memorandum of Understanding between the City of La Verne and the La Verne City Employees’ Association; and
2. Authorize the Closure of City Hall to the public on December 24, December 25, December 29, December 30, December 31, 2025, as well as January 1, 2026; and
3. Authorize the Closure of the Police Department Records Division to the public on December 24, December 25, December 26, and, December 31, 2025, as well as January 1, and January 2, 2026.
PUBLIC HEARINGS
7. Public Hearing, Making CEQA Exemption Determinations, and Approving Updates and Annual Cost Increases to Various Development Impact Fees. The City of La Verne completed a comprehensive Development Impact Fee (DIF) Nexus Study to evaluate facilities, equipment, and capital improvements necessary to maintain high-quality municipal services as new development occurs in the coming decades. The study establishes legally defensible fees that ensure new development contributes proportionately to the cost of public facilities. Staff recommends adoption of the proposed fees and Nexus Study to modernize La Verne’s impact fees, most of which have not been updated for many years.
Recommendation: That the City Council:
1. Conduct a public hearing on the proposed Development Impact Fee update; and
2. Find that the actions proposed herein are statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15378 (b) (4), 15061 (b) (3), and 15273 (Rates, Tolls, Fares, and Charges); and
3. Adopt a resolution titled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA VERNE, CALIFORNIA, UPDATING THE DEVELOPMENT IMPACT FEES AND AMENDING THE COMPREHENSIVE FEE SCHEDULE FOR FISCAL YEAR 2025-26; and
4. Approve annual adjustments tied to the California Construction Cost Index (CCCI) to account for inflation in construction and acquisition costs.
8. Amending the Comprehensive Fee Schedule and Incidental Outdoor Sidewalk Policy. That the City Council adopt a resolution amending the City’s Comprehensive Fee Schedule to include revised outdoor dining and display permit fees. These adjustments are proposed in response to feedback from Old Town businesses and require City Council approval to implement.
Recommendation: That the City Council conduct a public hearing and adopt a resolution amending the City’s Comprehensive Fee Schedule to include revised outdoor dining and display permit fees, and approve modifications to the Incidental Outdoor Sidewalk Policy to align with the updated fee structure.
DISCUSSION CALENDAR - NONE
PUBLIC COMMENTS
This is the time set aside for anyone wishing to address the City Council on items not listed in any other place on the agenda and within the subject matter jurisdiction of the City Council. Under the provisions of the Brown Act, the legislative body is prohibited from talking or engaging in discussion AGENDA City Council 11/17/2025 Page 5
on any item not appearing on the posted agenda. However, your concerns may be referred to staff or set for discussion later. Please email your public comment to the City Clerk's Office at [email protected]. Your public comment will be shared with the City Council and included as part of the permanent record. There is a 3-minute time limit on public comments.
COUNCIL COMMENTS AND CONFERENCE/MEETING REPORTS
Each Council Member may address the Council and public on matters of general information and/or concern. This is also the time for Council Members to report on conferences and/or meetings they have attended per Assembly Bill 1234.
ADJOURNMENT
THE NEXT REGULAR MEETING OF THE LA VERNE CITY COUNCIL IS SCHEDULED FOR MONDAY, DECEMBER 1, 2025, AT 6:00 PM FOR THE ANNUAL TREE LIGHTING CEREMONY.
Posting Statement: A true copy of this Agenda was posted on November 12, 2025, on the bulletin board at La Verne City Hall, 3660 D Street, La Verne, and on the City’s website at www.laverneca.gov.
AGENDA City Council 11/17/2025 Page 6
RESIDENT INFORMATION
UPCOMING EVENTS AND MEETINGS
Wednesday, November 19 - Senior Advisory Committee meeting, La Verne Community Center, 10:00 am
Wednesday, November 19 - Finance Commission meeting, City Hall, 6:30 pm
Tuesday, November 25 - Youth & Family Action Subcommittee meeting, City Hall, 5:00 pm
Monday, December 1 - City Hall Tree Lighting Ceremony, City Hall, 6:00 pm
Monday, December 1 - City Council meeting, City Hall, 6:30 pm
Tuesday, December 2 - Development Review Committee meeting, City Hall, 9:00 am
Saturday, December 6 - Brunch with Santa and Friends, Community Center, 9:00 am
Monday, December 8 - Senior Movie Matinee, Community Center, 12:30 pm
Wednesday, December 10 - Public Financing Authority (EIFD) meeting, City Hall, 9:00 am
Wednesday, December 10 - Planning Commission meeting, City Hall, 6:30 pm
Saturday, December 13 - 26th Annual Winter Wonderland, Heritage Park, 9:00 am - 1:00 pm
Saturday, December 20 - Household Hazardous Waste Collection Event, Brackett Field on the corner of Fairplex Drive and West McKinley Avenue, 9:00 am - 3:00 pm
Table of Contents
City Council Agenda Packet, Monday, November 17, 2025
Agenda 1
Agenda Items
PRESENTATIONS (2)
Native American Heritage Month Proclamation
City Financial Investment Update
CONSENT CALENDAR
1. Council Minutes of the November 3, 2025 Closed Session and Regular meeting 8
2. Registers of Audited Demands 15
3. Christmas Morning Parade Route Designation & Authorization of Paid Stipend Incentive for Employee Participation 18
4. 2026 Legislative Platform 21
5. Award of Contract for the Citywide Signing & Striping, and Traffic Signal Backplate Improvement Project 30
6. Authorizing the Execution of a Side Letter Agreement Amending the MOU Regarding Upcoming Holiday Closures 34
PUBLIC HEARINGS
7. CEQA Exemption Determinations & Approving Updates & Annual Cost Increases to Various Development Impact Fees 38
8. Amending the Comprehensive Fee Schedule & Incidental Outdoor Sidewalk Policy 155 DISCUSSION CALENDAR - None
COUNCIL REGULAR MEETING AGENDA
Tim Hepburn, Mayor
Wendy Lau, Council Member
Steven Frank Johnson, Council Member
Rick Crosby, Council Member
Meshal "Kash" Kashifalghita, Mayor Pro Tem
Monday, November 17, 2025
Closed Session at 5:30 PM
Regular Meeting at 6:30 PM
La Verne City Hall - Council Chambers,
3660 D Street, La Verne, CA 91750
In compliance with the American Disabilities Act, any person with a disability who requires a modification or accommodation to participate in a meeting should contact the City Clerk’s Office at (909) 596-8726 at least 48 hours prior to the meeting. Regular Meetings are held on the 1st and 3rd Monday of every month.
Individuals can email their comments to the City Clerk's Office at [email protected] up to noon on the day of the meeting. Those comments will be shared with City Council in advance of the City Council meeting and included as part of the permanent record. Please be advised that public comments submitted by emails or any other format to the City are public records that will be made available for public viewing.
Individuals who wish to share their comments with Council during the meeting may do so in a variety of ways:
• Attend the City Council Meeting in person and fill out a comment card or raise your hand to request to comment on the current agenda item(s).
• Participate via Zoom, by visiting laverneca.gov/zoom where you will be automatically redirected to the meeting or call into the meeting via phone 1-669-900-6833 and enter ID 873 2335 1668 when prompted. Public comments via Zoom may be accepted for the agenda items listed within the Consent Calendar, Public Hearing and Discussion Calendar sections of the agenda. Zoom participants who violate decorum protocols will be called to order by the presiding officer and if a violation continues, will be muted by direction of the presiding officer. • Once items are considered by the City Council, no further public comment on that matter will be accepted. A time limit of 3-minutes is set for all public comments.
Council Meeting Decorum: Per the City’s Rules for Decorum, all Speakers and Members of the Audience are to conduct themselves with decorum and not engage in willful conduct which interrupts the meeting or with the orderly conduct of the meeting.
CLOSED SESSION AGENDA - 5:30 PM
CALL TO ORDER
ROLL CALL Council Member Steven F. Johnson, Council Member Wendy Lau, Council Member Rick Crosby, Mayor Pro Tem Meshal “Kash” Kashifalghita, and Mayor Tim Hepburn.
AGENDA City Council 11/17/2025 Page 2
CLOSED SESSION TOPIC
Conference with Labor Negotiators, pursuant to Government Code § 54957.6:
Negotiators: City Manager, Assistant City Manager, and City Attorney.
Employee Organization(s): La Verne City Employees Association, La Verne Firefighters Association, La Verne Fire Middle Management Association, La Verne Police Officers Association, La Verne Police Middle Management Association, and all Unrepresented Employees.
The City Council will recess and reconvene at 6:30 PM for the regularly scheduled City Council meeting.
REGULAR CITY COUNCIL MEETING - 6:30 PM
PLEDGE OF ALLEGIANCE
ROLL CALL Council Member Steven F. Johnson, Council Member Wendy Lau, Council Member Rick Crosby, Mayor Pro Tem Meshal “Kash” Kashifalghita, and Mayor Tim Hepburn.
PRESENTATIONS
Native American Heritage Month Proclamation - November is a month-long observance celebrating the rich traditions, histories, and contributions of Native American, Alaska Native, Native Hawaiian and affiliated Island Communities.
City Financial Investment Update - A presentation by Shuster Advisory Group, LLC, the City’s investment advisor, on the City’s investment portfolio and related financial consulting services.
ANNOUNCEMENTS OF UPCOMING COMMUNITY EVENTS
(Any person who wishes to make a brief announcement of a future community event that is open to the public may do so at this time.)
CONSENT CALENDAR
(All items on the Consent Calendar are routine and will be enacted by one motion unless a member of the Council or member of the audience requests separate discussion.)
1. City Council Minutes of the Closed Session & Regular meeting of November 3, 2025.
Recommendation: That the City Council approve the minutes.
2. Register of Audited Demands in the amount of $976,830.68, dated10/29/25.
Recommendation: That the City Council approve the demands.
3. Christmas Morning Parade Route Designation and Authorization of Paid Stipend Incentive For Employee Participation. Since 1925, the Christmas Morning event has been held in which Santa is driven through the streets of La Verne accompanied by emergency vehicles signalizing
AGENDA City Council 11/17/2025 Page 3
a time for neighbors to share the tidings of the season together. To facilitate the event this year, the City Council is asked to approve designating all streets as a parade route and authorize a paid stipend for full and part-time participating City staff in order to facilitate the event.
Recommendation: That the City Council designate the streets in the City of La Verne as a parade route on Thursday, December 25, 2025, from 7 AM through 2 PM to complete the Christmas Morning Parade program and authorize the provision of a stipend for volunteers to participating full and part-time City staff.
4. 2026 Legislative Platform. The City of La Verne's Legislative Platform serves as a strategic framework for advocacy efforts, ensuring the City can respond effectively to legislation and communicate its priorities to policymakers. Upon approval, the 2026 Legislative Platform will take effect immediately, providing a clear road map for advocacy in the year ahead.
Recommendation: That the City Council approved the Legislative Platform for the 2026 legislative session.
5. Award of Contract for the Citywide Signing & Striping, and Traffic Signal Backplate Improvement Project. This action will award a construction contract to Superior Pavement Markings in the amount of $365,483.00 for CIP No. MI2402 – Citywide Signing & Striping, and Traffic Signal Backplate Improvement Project. Project Funding is provided through a combination of Gas Tax Funds (Fund 206) and Right-of-Way Funds (Fund 406) and will support miscellaneous traffic signage and striping improvements, school zone crosswalk enhancements, and traffic signal restoration at various locations throughout the City.
Recommendation: That the City Council:
1. Reject the bids submitted by Select Electric Inc. and California Professional Engineering, Inc. as non-responsive bids;
2. Award a public works construction contract to Superior Pavement Markings the lowest, responsive and responsible bidder, in the amount of $365,483.00 for the Citywide Signing & Striping Project, and Traffic Signal Backplate Improvement Project; and
3. Authorize staff to issue change orders not exceeding 10% of the construction budget for a total possible construction contract cost of $402,031.30; and
4. Authorize the City Manager to issue a purchase order to RKA Consulting Group in the amount of $45,000 for Professional Engineering and Construction Management/Inspection Services related to the project; and
5. Approve the “Citywide Signing & Striping Design Plans,” prepared by RKA Consulting Group, making the findings required under Government Code §830.6, and authorizing the City Engineer to issue clarifying revisions and field adjustments that do not materially alter the approved design intent.
6. Authorizing the Execution of a Side Letter Agreement Amending the Memorandum of Understanding Between the City of La Verne and the La Verne City Employees’ Association Regarding Upcoming Holiday Closures. The proposed side letter agreement to the Memorandum of Understanding (MOU) with the La Verne City Employees’ Association (LVCEA) will formalize City Council direction to close non-emergency public facilities in conjunction with the upcoming holiday season of Christmas and New Year’s.
Recommendation: That the City Council:
1. Authorize the City Manager to execute a Side Letter Agreement amending the
AGENDA City Council 11/17/2025 Page 4
Memorandum of Understanding between the City of La Verne and the La Verne City Employees’ Association; and
2. Authorize the Closure of City Hall to the public on December 24, December 25, December 29, December 30, December 31, 2025, as well as January 1, 2026; and
3. Authorize the Closure of the Police Department Records Division to the public on December 24, December 25, December 26, and, December 31, 2025, as well as January 1, and January 2, 2026.
PUBLIC HEARINGS
7. Public Hearing, Making CEQA Exemption Determinations, and Approving Updates and Annual Cost Increases to Various Development Impact Fees. The City of La Verne completed a comprehensive Development Impact Fee (DIF) Nexus Study to evaluate facilities, equipment, and capital improvements necessary to maintain high-quality municipal services as new development occurs in the coming decades. The study establishes legally defensible fees that ensure new development contributes proportionately to the cost of public facilities. Staff recommends adoption of the proposed fees and Nexus Study to modernize La Verne’s impact fees, most of which have not been updated for many years.
Recommendation: That the City Council:
1. Conduct a public hearing on the proposed Development Impact Fee update; and
2. Find that the actions proposed herein are statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15378 (b) (4), 15061 (b) (3), and 15273 (Rates, Tolls, Fares, and Charges); and
3. Adopt a resolution titled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA VERNE, CALIFORNIA, UPDATING THE DEVELOPMENT IMPACT FEES AND AMENDING THE COMPREHENSIVE FEE SCHEDULE FOR FISCAL YEAR 2025-26; and
4. Approve annual adjustments tied to the California Construction Cost Index (CCCI) to account for inflation in construction and acquisition costs.
8. Amending the Comprehensive Fee Schedule and Incidental Outdoor Sidewalk Policy. That the City Council adopt a resolution amending the City’s Comprehensive Fee Schedule to include revised outdoor dining and display permit fees. These adjustments are proposed in response to feedback from Old Town businesses and require City Council approval to implement.
Recommendation: That the City Council conduct a public hearing and adopt a resolution amending the City’s Comprehensive Fee Schedule to include revised outdoor dining and display permit fees, and approve modifications to the Incidental Outdoor Sidewalk Policy to align with the updated fee structure.
DISCUSSION CALENDAR - NONE
PUBLIC COMMENTS
This is the time set aside for anyone wishing to address the City Council on items not listed in any other place on the agenda and within the subject matter jurisdiction of the City Council. Under the provisions of the Brown Act, the legislative body is prohibited from talking or engaging in discussion
AGENDA City Council 11/17/2025 Page 5
on any item not appearing on the posted agenda. However, your concerns may be referred to staff or set for discussion later. Please email your public comment to the City Clerk's Office at [email protected]. Your public comment will be shared with the City Council and included as part of the permanent record. There is a 3-minute time limit on public comments.
COUNCIL COMMENTS AND CONFERENCE/MEETING REPORTS
Each Council Member may address the Council and public on matters of general information and/or concern. This is also the time for Council Members to report on conferences and/or meetings they have attended per Assembly Bill 1234.
ADJOURNMENT
THE NEXT REGULAR MEETING OF THE LA VERNE CITY COUNCIL IS SCHEDULED FOR MONDAY, DECEMBER 1, 2025, AT 6:00 PM FOR THE ANNUAL TREE LIGHTING CEREMONY.
Posting Statement: A true copy of this Agenda was posted on November 12, 2025, on the bulletin board at La Verne City Hall, 3660 D Street, La Verne, and on the City’s website at www.laverneca.gov.
AGENDA City Council 11/17/2025 Page 6
RESIDENT INFORMATION
UPCOMING EVENTS AND MEETINGS
Wednesday, November 19 - Senior Advisory Committee meeting, La Verne Community Center, 10:00 am
Wednesday, November 19 - Finance Commission meeting, City Hall, 6:30 pm
Tuesday, November 25 - Youth & Family Action Subcommittee meeting, City Hall, 5:00 pm
Monday, December 1 - City Hall Tree Lighting Ceremony, City Hall, 6:00 pm
Monday, December 1 - City Council meeting, City Hall, 6:30 pm
Tuesday, December 2 - Development Review Committee meeting, City Hall, 9:00 am
Saturday, December 6 - Brunch with Santa and Friends, Community Center, 9:00 am
Monday, December 8 - Senior Movie Matinee, Community Center, 12:30 pm
Wednesday, December 10 - Public Financing Authority (EIFD) meeting, City Hall, 9:00 am
Wednesday, December 10 - Planning Commission meeting, City Hall, 6:30 pm
Saturday, December 13 - 26th Annual Winter Wonderland, Heritage Park, 9:00 am - 1:00 pm
Saturday, December 20 - Household Hazardous Waste Collection Event, Brackett Field on the corner of Fairplex Drive and West McKinley Avenue, 9:00 am - 3:00 pm
MINUTES OF THE CLOSED SESSION & REGULAR
MEETING OF NOVEMBER 3, 2025
ACTION MINUTES
“SEE ITALICS”
CLOSED SESSION AGENDA - 5:30 PM
CALL TO ORDER…meeting called to order at 5:30 PM.
ROLL CALL Council Member Steven F. Johnson, Council Member Wendy Lau, Council Member Rick Crosby, Mayor Pro Tem Meshal “Kash” Kashifalghita, and Mayor Tim Hepburn.
Council Members Present: Crosby, Johnson, Lau, Kashifalghita, and Hepburn.
Council Members Absent: None
Advisory Staff Present: City Manager Domer, City Attorney Hall Barlow, and Assistant City Manager Ranells.
CLOSED SESSION TOPIC
City Attorney Hall Barlow read the closed session items for the record. It is anticipated there will be no report out.
Conference with Labor Negotiators, pursuant to Government Code § 54957.6: Negotiators: City Manager, Assistant City Manager, and City Attorney.
Employee Organization(s): La Verne City Employees Association, La Verne Firefighters Association, La Verne Fire Middle Management Association, La Verne Police Officers Association, La Verne Police Middle Management Association, and all Unrepresented Employees.
Significant exposure to litigation pursuant to Government Code § 54956.9(d)(2): 1 case
The City Council recessed at 5:31 PM.
CLOSED SESSION – REPORT OUT
City Attorney Hall Barlow stated no reportable action was taken in Closed Session.
REGULAR CITY COUNCIL MEETING - 6:30 PM – meeting called to order at 6:34 PM.
PLEDGE OF ALLEGIANCE – US VIETNAM VETERAN SGT. HOWARD HERNANDEZ Mayor Pro Tem Kashifalghita, on behalf of the Council, presented US Vietnam Veteran Sergeant Howard Hernandez with a Pride of La Verne certificate and thanked him for his service to our country.
ROLL CALL Council Member Steven F. Johnson, Council Member Wendy Lau, Council Member Rick Crosby, Mayor Pro Tem Meshal “Kash” Kashifalghita, and Mayor Tim Hepburn.
Council Packet - November 17, 2025
Minutes City Council 11/3/2025 Page 2
Council Members Present: Crosby, Johnson, Lau, Kashifalghita, and Hepburn.
Council Members Absent: None
Advisory Staff Present: City Manager Domer, City Attorney Hall Barlow, and Assistant City Manager Ranells.
PRESENTATIONS
Lights and Sirens Holiday Toy Drive – The La Verne Firefighters’ and Police Officers Associations are leading a joint effort to bring holiday cheer this Christmas. From November 12 to December 12, please donate new, unwrapped toys at City Hall, Public Safety Building, Fire Stations 1, 2, and 3, and the Community Center, which will be gifted to a family in need.
SR Management Analyst Jennifer Brown, Police Community Services Supervisor Hollie Savage, representatives from Hillcrest and a special guest, Sparky, presented the joint Holiday Toy Drive.
Donation bids for new unwrapped toys will be located at City Hall, the Community Center, the Public Safety Building, all three fire stations and at Hillcrest . Additionally, there are two special community events this year. On Thursday, December 4th LVFA and the POA will face off with Bonita High School in the annual softball game at Wheeler Park. Game time is 5:00 pm, then on Saturday, December 6th from 8:00 am till 11:00 am there will be a Stuff the Sirens event at the Target Shopping Center, where an ambulance will be filled with the toys donated by the Community.
Outgoing Commissioner Recognition – La Verne residents play a crucial role as Commissioners, offering valuable input that helps shape the City’s planning and decision-making. At this time, we would like to recognize our outgoing Commissioners, who have generously served our community for many years.
The outgoing committee members for the Active Transportation Committee, Planning Commission, Measure LV Citizen Oversight Committee, and the Youth Sports Committee were recognized for their dedication and years of service on their Committees.
ANNOUNCEMENTS OF UPCOMING COMMUNITY EVENTS
(Any person who wishes to make a brief announcement of a future community event that is open to the public may do so at this time.)
Announcements received from: Yvonne Gallegos, Adarian Romero, and Sherry Best.
Council announcements received from: Mayor Hepburn regarding the Veterans Day Holiday and Ceremony at Veterans Hall, which starts at 11:00 am. The Veterans Memorial recently received an addition, the Bronze Canine statue. Thank you to the LV Veterans Society, which is made up of community members and former Mayor Kendrick, and Council Members Robin Carder and Dan Harden. Thank you to all who donated to this memorial.
CONSENT CALENDAR
(All items on the Consent Calendar are routine and will be enacted by one motion unless a member of the Council or member of the audience requests separate discussion.)
Council Packet - November 17, 2025
Minutes City Council 11/3/2025 Page 3
After confirming that no items were pulled by Council nor the Public, it was moved by Johnson, seconded by Lau, and approved 5-0
1. City Council Minutes of the Closed Session and Regular meeting of October 20, 2025.
Recommendation: That the City Council approve the minutes. Approved
2. Registers of Audited Demands in the amount of $997,098.82, dated 10/15/25 and in the amount of $1,565,139.11, dated 10/22/25.
Recommendation: That the City Council approve the registers of audited demands. Approved
3. Quarterly Treasurers Report ending September 30, 2025. The Quarterly Treasurer’s Report provides an overview of the City’s cash and investment holdings as of September 30, 2025. The report confirms compliance with the City’s investment policy as set forth in Administrative Regulation Number 215, the Statement of Investment Policy, and the State of California’s Government Code (GC) Section 53646.
Recommendation: That the City Council receive and file the Quarterly Treasurer’s Report for the period ending September 30, 2025. Approved
4. Transit Oriented Development Pedestrian Bridge Project: Construction and Maintenance Agreement with Southern California Regional Rail Authority and San Gabriel Valley Council of Governments. The proposed pedestrian bridge crossing over Arrow Highway and the Metrolink San Bernardino Line (railroad tracks) will provide a grade-separated connection between the La Verne A-Line Station and the Fairplex campus. Implementation of this project will require the execution of a Construction and Maintenance (C&M) Agreement among the participating public agencies. The agreement will define each agency’s respective roles and responsibilities and will be executed by the City of La Verne, the San Gabriel Valley Council of Governments (SGVCOG), and the Southern California Regional Rail Authority (SCRRA/Metrolink).
Recommendation: That the City Council approve a Resolution authorizing the City Manager to enter into the Construction and Maintenance Agreement for the Transit Oriented Development Pedestrian Bridge Project with the San Gabriel Valley Council of Governments and the Southern California Regional Rail Authority. Approved
5. Rejection of Bids for the City of La Verne Fire Station No. 1 Gender Compliance Improvement Project. This action will reject all bids submitted for the City of La Verne Fire Station No. 1 Gender Compliance Improvement Project. Bids were opened on October 7, 2025. The apparent low bid submitted a bid exceeding the projected project construction budget. The apparent low bid also received a bid protest regarding a significant signature omission error.
Recommendation: That the City Council reject all bids and direct City Staff to modify the project scope and re-advertise the project for bidding. Approved
6. Franchise Agreement Time Extension for Sanders Towing Inc. The City maintains a franchise agreement with Sanders Towing Inc. to provide towing and vehicle impound services within the City of La Verne. The three-year agreement was initially approved after a competitive process completed July 18, 2022. Section IV, Subsection A of the agreement, allows the term to be extended upon the written consent of both parties.
Recommendation: That the City Council authorize the City Manager to execute a three-year extension of the Franchise Towing Agreement with Sanders Towing Inc. Approved
Council Packet - November 17, 2025
Minutes City Council 11/3/2025 Page 4
7. Authorizing the Execution of a Side Letter Agreement Amending the Memorandum of Understandings Between the City of La Verne and the La Verne Firefighters’ Association Regarding Education Incentives. Approval of a new Side Letter with the La Verne Firefighters’ Association (LVFA) to amend the existing Memorandum of Understanding (MOU) for compliance with additional CalPERS requirements.
Recommendation: That the City Council authorize the City Manager to execute a Side Letter Agreement amending Memorandum of Understandings between the City of La Verne and the La Verne Firefighters’ Association Regarding Education Incentives. Approved
8. Vehicle Replacement, Police Chief Assigned Vehicle. Amendment to the Fiscal Year 2025- 26 Budget in the amount of $49,996.18 for the replacement of a Police Department vehicle.
Recommendation: That the City Council adopt a resolution titled, "A RESOLUTION OF THE CITY COUNCIL, CITY OF LA VERNE, CALIFORNIA, AMENDING FISCAL YEAR 2025-26 ADOPTED BUDGET IN THE AMOUNT OF $49,996.18 AND AUTHORIZE THE ADVANCEMENT OF VEHICLE REPLACEMENT FM 3115 FOR THE PURCHASE OF ONE (1) 2026 DODGE DURANGO." Approved
PUBLIC HEARINGS
9. Conduct a Public Hearing and Consider Resolution Adopting Water and Sewer Rate Adjustments for Fiscal Years 2025-26 through 2029-30 and Finding that Adoption of the Rates is Exempt from the California Environmental Quality Act (CEQA). The City operates water and sewer utility systems through enterprise funds supported entirely by ratepayer revenue and recently completed a comprehensive rate study and public participation process to update the cost-of-service mode and financial plan. This Proposition 218 Public Hearing allows for residents to protest the proposed rates and, if sufficient protest is not received, for Council to set rates for the next five years, effective January 1, 2026.
Recommendation: That the City Council, after conducting a Public Hearing in compliance with Proposition 218 to accept comments on the proposed water and sewer rates:
1. Direct the Deputy City Clerk to tabulate the results of the protests received from property owners and announce the findings; and
2. Adopt a Resolution titled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA VERNE, CALIFORNIA, ESTABLISHING WATER AND SEWER RATES AND CHARGES FOR A FOUR-YEAR PERIOD (FY 2025-26 THROUGH FY 2029-30)"; and
3. Authorize the City Manager, Finance Director, and Public Works Director to implement the rates, update the Master Schedule of Fees and Charges, make non-substantive corrections to the exhibits, and complete all billing system updates; and
4. Find that adoption of the water and sewer rates is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080(b)(8) and CEQA Guidelines Sections 15061(b)(3) and 15378(b)(2).
Mayor Hepburn opened the Public Hearing and requested the staff member presenting this item to come forward. Public Works Director Wu and Raftelis Project Director Pardiwala reported on this item.
Public Comments received from: Brian Bowcock, Shirley Baldwin, Sherry Shaw, Mike Blazinski, Dusty Moisio, Jim Fleetwood, Bruce Becker, Elizabeth Aldana, James Wilkinson, Patricia Mobley, Alayna Nord, Cherie Anderson, Christopher Dobbs, Patricia Sweetman, Diane Wilkinson, Pam Berry, Danita Beauchamp, Cynthia Gabaldon, William McKenna, Joe Gabaldon, Lily Brainard, Chris NLN, Terry Prentice, Susan Hines, Richard Bowen, Becky
Council Packet - November 17, 2025
Minutes City Council 11/3/2025 Page 5
NLN, Kathy Kalouseck, Ruth Spacious (sp), Doug Shortrate (sp), and one additional resident- no name given.
Questions from the audience were answered by Council, Staff and the Consultant:
Operating Expenses, infrastructure, and replenishment figures were all contained in the final report. Page 181 of the report contains the detailed Capital Improvement plan. This information is included in the agenda report and can be found on the City website at laverneca.gov/ratestudy.
Community Engagement – Information from the Water and Sewer Rate Ad Hoc Committee has been on the website for some time. There have been numerous postings on social media, the information was included in the Recreation Guide, which gets mailed to every address in La Verne, also a mailer specific to the rate study and increase was mailed to every parcel address with a meter, and lastly the Prop 218 Brochure was mailed to every parcel with a meter.
Council Comments/Discussion: Council Member Crosby asked if the water money goes anywhere else, like back in the general fund.
City Manager Domer clarified, only to cover overhead costs for the water department. Any funds raised by an enterprise fund cannot go to cover General Fund normal operating costs.
Can the Water Fund be subsidized by the General Fund, no, due to the state of the General Fund.
Council Member Lau asked for clarification on the amount of monies going to operating costs and what percentage or amount to infrastructure?
Public Works Director Wu stated the operating and maintenance costs for the current year 2025 is about $12.9 million, of which 70% of this is for the water production and purchase costs. La Verne gets more than three quarters of the water we provided imported from Three Valleys. The $12.9 million is projected to be 18.6 million in 2030. On the Capital Improvement side that total is $27 million of which $16.9 million is water CIP projects and another $10.5 million in sewer CIP projects.
Council Member Johnson stated that as far as maintenance is concerned, we will never be finished, the City is too large, there’s old plumbing that needs to be replaced hopefully before they fail. There is always going to be new development and pipes break. The sewer system is the same, repairs and maintenance are constant.
City Attorney Hall Barlow clarified the fee structure is a fixed fee by meter size, that controls how much water flow, therefore residents pay per 1,000 gallons of water, which is directly proportional to what you actually use. We are not allowed to do tiered structures. We can do fixed and fixed fees for infrastructures and commodity charges, which is what we do. We cannot have higher charges for people who consume more, we can only charge them for what they consume. That has been ruled by the courts, we also can’t charge lower rates to people who are on fixed incomes. There are many programs that can be put into place to provide assistance to them, but we are not allowed to make the rest of the rate payers pay for that.
Council Packet - November 17, 2025
Minutes City Council 11/3/2025 Page 6
Also, there we some question about the objections and the responses to them under the statue, if the responses are delivered prior to the close of the public hearing and this is all we have to do. That has been done, and all objections have been made available to Council for their review as part of the public hearing. There was a point about charges being excessive, the charges are not excessive if they are necessary. That’s what the rate study does. The fact that it is a big jump doesn’t mean it’s excessive, it means that rates were low for a very long time and this is just a way to catch up. Under the law it’s not excessive simply because it’s a little difficult to take.
Mayor Hepburn recessed the meeting at approximately 9:45 PM to allow for the counting of the protest ballots. The meeting was called back to order at 9:55 PM and City Manager Domer stated that there were 1,532 protest votes against the rate increase, thereby short of the needed 4,769 required to protest the rate increase.
Council Member Crosby clarified his no vote in a previous council meeting was for the increase amount of 50%, not for the need of the increase overall, and feels that the 50% increase is a lot for most of the residents in his district that are on a fixed income, and he is very concerned about our infrastructure.
Council Member Johnson is not sure the highest level of increase is what the Council is going to recommend, it’s not his first choice however, the reserves need to catch up to take care of the systems that we maintain.
Council Member Lau is concerned about the age of our infrastructure, which due to its age of over 100 years has issues that is not taken care of could cause greater impacts to the City.
Also, acknowledges that a 50% rate increase is not ideal for anyone, 45% is a lot also. If you attended our budget study sessions, we do not have a revenue stream like other cities around us, that’s a big concern, if something catastrophic happens how can we handle that.
Mayor Pro Tem Kashifalghita acknowledged the community had some great comments on this, it’s about the here and now, and how can I better your lives, that’s what local government does, is concerned about the effect on our senior retired population, we have to make sure that we provide you water, is an essential means of life.
Mayor Hepburn thanked the Ad Hoc Committee, City staff and City Manager for the tremendous amount of work and time put into this. We were elected because we care about our community, if you ever have an issue, call us, we will get you help. Remember, it costs money for services in our community. Our infrastructures need to be taken care of. We have our own Police and Fire services, you have to pay for those increases, its not pleasant but at the end of the day, water flows and its fresh and we’re keeping up with technology.
Council recessed into Closed Session at 10:19 PM.
Meeting was called back to order at 10:27 pm.
Closed Session Report Out- City Attorney Hall Barlow stated there was nothing to report.
After further discussion. It was moved by Crosby, seconded by Kashifalghita, and approved by a vote of 5-0 to approve the 35% rate increase January 1, 2026, 25% on July 1, 2026, 15%
Council Packet - November 17, 2025
Minutes City Council 11/3/2025 Page 7
July 1, 2027, 10% July 1, 2028, and 10% July 1, 2029, with a rate study to be started prior to July 2027.
For the remainder of the staff recommended items, related to the sewer increase of 15% annually over the five years, approval of the resolution, and authorization to make minor adjustments, it was moved by Johnson, seconded by Lau, and approved 5-0.
DISCUSSION CALENDAR - NONE
PUBLIC COMMENTS
This is the time set aside for anyone wishing to address the City Council on items not listed in any other place on the agenda and within the subject matter jurisdiction of the City Council.
Under the provisions of the Brown Act, the legislative body is prohibited from talking or engaging in discussion on any item not appearing on the posted agenda. However, your concerns may be referred to staff or set for discussion later. Please email your public comment to the City Clerk's Office at [email protected]. Your public comment will be shared with the City Council and included as part of the permanent record. There is a 3-minute time limit on public comments.
Comments received from: Brian Bowcock, Danita Beauchamp, No name given, Alayna Nord, and Lily Brainard.
COUNCIL COMMENTS AND CONFERENCE/MEETING REPORTS
Each Council Member may address the Council and public on matters of general information and/or concern. This is also the time for Council Members to report on conferences and/or meetings they have attended per Assembly Bill 1234.
Council Comments: Council Member Crosby thanked everyone for attending this meeting.
Announced the Veterans Day Ceremony on Tuesday, November 11 at 11:00 am.
Council Member Lau thanked everyone for the interaction and engagement.
Mayor Pro Tem Kashifalghita encouraged all to support our Veterans, and not to forget about our POWs and MIAs. Thank you everyone for coming.
Mayor Hepburn Thanked staff and the Ad Hoc Committee, and encouraged everyone to vote tomorrow.
ADJOURNMENT - meeting was adjourned at 10:45 PM.
Respectfully submitted,
Debra Fritz, CMC
Deputy City Clerk
Council Packet - November 17, 2025
CITY OF LA VERNE
REGISTER OF AUDITED DEMANDS
t0/2912025
FY 25-26
DEMANDS PRESENTED HAVE BEEN APPROVED CONSISTENT WITH THE CITY'S PURCHASING/FUNDINO POLICY AND HAVE BEEN REVIEWED BY THE DIRECTOR FOR ACCURACY AND PROPER APPROVAL.
SUMMARY OF DEMANDS
LARGEST IO CITY DEMAND PAYMENTS OTHER THAN PAYROLL AND RELATED BENEFITS.
AMOLINT ISSUED TO DESCRIPTION
1. 2.
3. 4.
5. 6.
'1.
8. 9.
10. 3 I 5,384.4 I
I 70, I 08,00
53,090. I I
46,8 1 4.1 0
45,753.7 5
24.864,65
2t,064.62
I 7,54 1.83
I 6,852.33
15,743.65
24t,069.82
WASTE MANAGEMENT
WEST COAST ARBORISTS INC
CREENSCAPE MAINTENANCE SERVICES INC
U.S, BANK CORPORATE PAYMENT SYSTEMS
PUMP BROTHERS INC,
SDI PRESENCE LLC
U.S. BANK CORPORATE PAYMENT SYSTEMS
INTER-CON SECURITY SYSTEMS INC
ROGER BASS
BLYTHBURN ENTERPRISES, LLC
OTHER DEMANDS
AUGUST 2025 WATER USAGE
TREE MAINTENANCE O8/OI/2025 TO O9I2OI2O25
OCTOBER 2025 MAINTENACE AND REPAIRS VARIOUS LOCATIONS
CITY CREDIT CARD TRANSACTIONS FOR AUGUST 2025
PARTIAL PAYMENT FOR PUMP BOOSTERS AT FRANKLYN LIFT STATION SEPTEMBER 2025 LICENSE AND IT SUPPORT
CITY CREDIT CARD TRANSACTIONS FOR JUNE 2025
SEPTEMBER 2O25PARKING ENFORCEMENT
OCTOBER 2025 SERVICES (L.A. CLEAR)
OCTOBER 2025 SERVICES (L.A. CLEAR)
$ 968,28't.27
DEMANDS OF S8,543.4I WERE PAID ON BEHALF OF LA IMPACT FOR LAW ENFORCEMENT TASK FORCE OPERATIONS- IN ACCORDANCE CODE SECTION 37202, I HEREBY CERTIFY THAT THIS IS A TRUE AND ACCURATE REGISTER OF AUDITED DEMANDS.
CHRISTY LOPEZ
FINANCE DIRECTOR
Page I of3
Council Packet - November 17, 2025
CITY OF LA VERNE FY 25-26
REGISTER OF AUDITED DEMANDS - EXHIBIT A
CHECK NO. AMOUNT ISSUED TO
10129125
I 75 198
175199
175200
175201
175202
175203
175204
175205
175206
175207
175208
175209
17 5210
t75211
1752t3
175214
t7 5215
1752t6
175217
t7 5218
17 5219
r75220
t75221
t75222
t75223
175224
175225
t75226
175227
175228
t75229
t75230
175231
t75232
175233
17s234
175235
175236
175237
175238
t75239
t7 5240
175241
175242
175243
t7 5244
175245
175246
175247
175248
175249
1752s0
EFT
EFT
EFT
EFT
59.55 250.00
3,8s4.01
382.73
15,288.37
2,439.50
100.00
24.50 427.50
652.50
8l I .75
2,380.00
191 ,89
703.56
3,059.12
128.00
3,300.00
95.00 1,208.32
128.80
442.00
110.00
707.74
403.07
14,373.51
500.00
725.00
I,773.99
253.05
104.09
1,205.44
7,700.00
121.82
174.57
2,395.00
440.00
329.26
866.74
783.88
45,7 53.7 5
4,882.82
214.26
12,261.85
125.57
272.37
47.62 4,994.00
1,533.90
3,542.00
l,260.88
617.11
293.53
732.00
I,700.00
670.00
5,449.86
ALBERTSONS/SAFEWAY
ALTAF L. ALI, M.D.,INC.
APPLIED TECHNOLOGY GROUP, INC.
ATKINSON,ANDELSON,LOYA,RUUD & ROMO
BELFOR PROPERTY RESTORATION
BRUBAKER, CARL
BURRO CANYON SHOOTING PARK
C&ELUMBERCOMPANY
CALIF. BUILDING STANDARDS COMM.
CALIFORNIA PEST MANAGEMENT,INC.
CHARTER COMMUNICATIONS
CIVILTEC ENGINEERING, INC.
COLLEY FORD
CUSTOM WATER,INC.
DANIELS TIRE SERVICE
DEPARTMENT OF MOTOR VEHICLES
EMPIRE TRUCKING SCHOOL
ERICKA DURAN
EVERSOFT
FIDLER, ZACHARY
FRESHMOBILECA LLC
HI STANDARD AUTOMOTIVE, LLC
HOLLIDAY ROCK CO,
HOME DEPOT CREDIT SERVICES
INDUSTzuAL LOGICS ELECTRIC
INTERNATIONAL CHARITY GROUP
JIMENEZ FLEET SERVICES, INC.
KYOCERA DOCUMENT SOLUTIONS WEST
KYOCERA DOCUMENT SOLUTIONS WEST LLC
LA VERNE CAR WASH
LESLIE'S POOLMART, INC.
LOS ANGELES COUNTY PUBLIC WORKS
MALLORY SAFETY AND SUPPLY LLC
MAVERICK DATA SYSTEMS
MCLAY SERVICES,INC.
PAIGE, STEPHEN
PARKHOUSE TIRE,INC.
PITNEYBOWES GLOBAL FINANCIAL SVCS
POWERS ELECTRIC PRODUCTS CO.
PUMP BROTHERS INC.
RINGCENTRAL INC.
SAFETY-KLEEN SYSTEMS, INC.
SIERRA PACIFIC ELEC. CONTRACTING
SOUTHERN CALIFORNIA EDISON
SOUTHWEST SOLAR
STEPHANIE SHIN
SHANNON SULLIVAN
T.MOBILE
THE LIVING DESERT
VERIZON WIRELESS
WAGEWORKS,INC.
WHITE CAP, L.P.
AM-TEC TOTAL SECURITY INC
ARAGON, zuCHARD
BEE REMOVAL
BRENNTAG PACIFIC INC
Page2of 3
Council Packet - November 17, 2025
CITY OF LA VERNE FY 25-26
REGISTER OF AUDITED DEMANDS . EXHIBIT A
CHECK NO. AMOI.]NT ISSUED TO
10129125
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
EFT
BANKDRAWN
BANK DRAWN
BANK DRAWN
5,242.46
298.28
2,g5g.gg
1,840.00
I,867.58
2,369.20
s3,090.1 I
198.16
2,795.23
I 7,541 .83
609.66
12,121.85
625.00
350.00
4,795.13
9,613.02
3l 1.80
24,864.6s
1,500.00
3,386.22
97.88 r,200.00
1,868.50
3,034.20
3 I 5,3 84.4 I
1 70, I 08.00
3,045.45
11,204.16
t5,7 43.65
7,000.00
10,166.67
8,937.s0
1 5,28 I .93
5,5 16.00
16,852.33
21,064.62
15,443.03
46,8 14. I 0
CAMPBELL, LARRY
COLLEGIATE PRESS
COMMERCIAL DOOR COMPANY INC
COUNTY OF LOS ANGELES / LA.RICS
EWING IRRIGATION PRODUCTS
GONZALEZ, SAM
GREENSCAPE MAINTENANCE SERVICES INC
HAAKER EQUIPMENT CO.
HARRINGTON INDUSTRIAL PLASTICS LLC
INTER-CON SECURITY SYSTEMS INC
INTERSTATE BATTERY INLAND VALLEY
L.N. CUSTIS AND SONS
LAW ENFORCEMENT MEDICAL SERVICES
LOPEZ, CHRISTY
RKA CONSULTING GROUP
RUSH TRUCK CENTERS
SANDERS LOCK & KEY
SDI PRESENCE LLC
SHUSTER ADVISORY GROUP LLC
SOUTHLAND MECHANICAL INC
SL]N BADGE CO
THE COI.'NSELING TEAM INTERNATIONAL
TURBO DATA SYSTEMS INC
VETTI, MIKE
WASTE MANAGEMENT
WEST COAST ARBORISTS INC
WESTERN WATER WORKS
BLUE ROCK OF NORTH IDAHO LLC
BLYTHBURN ENTERPRISES, LLC
CASTILLO CRIMINAL INTELLIGENCE CONSULTING
CORDRAY ENTERPRISES LLC
DEROIAN VENTURES
LIBERTY COASTAL LLC
MARLYN PACHECO LLC
ROGER BASS
U.S. BANK CORPORATE PAYMENT SYSTEMS
U.S. BANK CORPORATE PAYMENT SYSTEMS
U.S. BANK CORPORATE PAYMENT SYSTEMS
968,287.27
8,543.41
Total Demand 976,830.68
LAIMPACT Law Enforcement Task Force Demands
t7 5251
175252
t75253
EFT
Total
5,207.37
3,148.54
187.50
CITY OF PASADENA
LOS ANGELES COUNTY SHEzuFF'S DEPT.
TECHNOLOGY MANAGEMENT CONCEPTS
8,543.41
LAIMPACT demands are paid from federal asset forfeiture dollars allocated to LAIMPACT crime prevention activities. These funds are not city funds and are not available for city use outside of LAIMpACT activities.
Council Packet - November 17, 2025
City of La Verne,City Council
Agenda Report
DATE: November 17, 2025
TO: Honorable Mayor and City Council
FROM: Ken Domer, City Manager
SUBJECT: CHRISTMAS MORNING PARADE ROUTE DESIGNATION AND
AUTHORIZATION OF PAID STIPEND INCENTIVE FOR EMPLOYEE
PARTICIPATION.
SUMMARY
Since 1925, the Christmas Morning event has been held in which Santa is driven through the streets of La Verne accompanied by emergency vehicles signalizing a time for neighbors to share the tidings of the season together. To facilitate the event this year, the City Council is asked to approve designating all streets as a parade route and authorize a paid stipend for full and part-time participating City staff in order to facilitate the event.
RECOMMENDATION
That the City Council designate the streets in the City of La Verne as a parade route on Thursday, December 25, 2025, from 7 AM through 2 PM to complete the Christmas Morning Parade program and authorize the provision of a stipend for volunteers to participating full and part-time City staff.
DISCUSSION
The Christmas Morning event is a cherished tradition of Santa Claus making his way through the streets of La Verne on Christmas morning. Over the years, with growth in the City and logistical challenges to organizing the event, the tradition has morphed into the current six routes with first responder vehicles leading Santa as he makes his way around the City, without the distribution of treats.
Each route will include two vehicles: a lead vehicle with lights and sirens not on active duty, a vehicle to transport Santa, and potentially one additional emergency vehicle that is on-duty and subject to immediate response if there is a call for service. The traditional six routes of Santa Claus escorted by a vehicle with lights and sirens will start at 7 AM to approximately 11 AM.
In keeping with tradition, the utilization of emergency vehicles equipped with emergency lights and sirens requires special provisions for legal purposes. To properly conduct the event, the City Council is required to declare all streets within the City during the event as a “parade route.” The California Vehicle Code governs the utilization of emergency vehicles during this special event, specifically, Section 21055 (b), if the driver of the vehicle sounds a siren as may be reasonably necessary and the vehicle displays a lighted red lamp visible from the front as a warning to other drivers and pedestrians. Drivers of vehicles with lights and sirens are trained in such use, as when emergency lights and sirens are employed, drivers must exercise due regard for safety.
Council Packet - November 17, 2025
Christmas Morning Parade Route Designation and Authorization of Paid Stipend Incentive For Employee Participation., Page 2
California Vehicle Code Section 23116 states that: (a) No person driving a pickup truck or a flatbed motortruck on a highway shall transport any person in or on the back of the truck, and (b) No person shall ride in or on the back of a truck or flatbed motortruck being driven on a highway. However, 23116 (f) clarifies that subdivisions (a) and (b) do not apply if the person in the back of the truck or flatbed motortruck is being transported in a parade that is supervised by a law enforcement agency and the speed of the truck while in the parade does not exceed eight miles per hour. Not only is the safety of other vehicles on the road critical, so is the safety of Santa! This authorization also allows designated parade vehicles the privilege of utilizing amplified sound, including sirens and lights, exclusively while traversing the parade route, under California Vehicle Code Section 27007, which grants an exemption for the use of such equipment during parades or special events.
To assist in the coordination of the Christmas Morning event, the City is sending a mailer to the community informing them of the event and directing residents to laverneca.gov/christmasmorning
. On this webpage, the event details are listed as well as maps identifying the tentative times for when Santa will be visiting their neighborhoods.
Finally, the transition of the event from a volunteer-led effort to a primary City-sponsored event requires City employees to work their designated Christmas holiday in order to ensure the event takes place. As identified during the two 2023 Study Sessions, one of the logistical issues is that in the past, the event required staff members to work all day, sometimes up to 12 hours, to support the event. Operating under the new format, that time frame was reduced to approximately 4-6 hours depending on the route. It is recognized that the holiday is a family holiday and if positions must be filled by City staff, it is requested that those members be provided a paid stipend to work the holiday. A $500 stipend is proposed for any full or part-time City employee, not regularly scheduled, who works the event. Additionally, a $750 stipend is proposed for two City staff members who will be in charge of day-of event coordination and a partial stipend of $250 for staff members on-call for the event. During last year's event, some last-minute hiccups resulted in a delay for one of the Christmas morning routes and highlighted the need for additional volunteers to be on call to ensure the timely delivery of the Christmas Morning event. This $250 incentive will ensure that sufficient staff are available to support the event and maintain the Christmas Morning schedule.
FISCAL ANALYSIS
Appropriations of $15,750 are included within the 2025-26 Adopted Budget within the General Fund for this event. Estimated stipend costs are $8,750 and $7,000 is estimated to be used for a City-wide postcard mailer to inform residents about the Christmas Morning event, other holiday events hosted by the City, and general City updates.
ENVIRONMENTAL ANALYSIS
Not applicable.
LEGAL REVIEW
The City Attorney has reviewed and approved this report.
ATTACHMENTS
Council Packet - November 17, 2025
Christmas Morning Parade Route Designation and Authorization of Paid Stipend Incentive For Employee Participation., Page 3
None
Report Prepared By:
Andrea Blockinger, Administrative Analyst
Council Packet - November 17, 2025
City of La Verne,City Council
Agenda Report
DATE: November 17, 2025
TO: Honorable Mayor and City Council
FROM: Andrea Blockinger, Administrative Analyst
SUBJECT: 2026 LEGISLATIVE PLATFORM.
SUMMARY
The City of La Verne's Legislative Platform serves as a strategic framework for advocacy efforts, ensuring the City can respond effectively to legislation and communicate its priorities to policymakers. Upon approval, the 2026 Legislative Platform will take effect immediately, providing a clear road map for advocacy in the year ahead.
RECOMMENDATION
That the City Council approved the Legislative Platform for the 2026 legislative session.
DISCUSSION
Every year, the City adopts a Legislative Platform, which outlines the City's positions on priority issues and serves as a framework for advocacy efforts at the federal, state, and local levels.
The Legislative Platform ensures efficient decision-making by providing City staff with clear guidance for advocacy. It facilitates timely response to legislation that could impact the City's operations while clearly communicating the City's position to legislators, policymakers, and the public.
To ensure the Legislative Platform continues to align with the City's current needs and the political landscape, the Legislative Platform undergoes an annual review. In October, City staff evaluated the 2025 Legislative Platform and incorporated updates to create the proposed 2026 version. While most policy statements remain unchanged, adjustments were made in the following sections:
• Parks & Recreation: Community & Recreation Services has been updated to Parks and Recreation Services. Additionally, the section was refocused from broad community- wellbeing and recreation goals to a more detailed and dedicated Parks and Recreation framework emphasizing facility investment, accessibility, funding stability, and program delivery.
• Public Safety: This section includes an additional emphasis on modern, collaborative, and specialized response capabilities, including regional coordination, technology upgrades, targeted crime-fighting efforts, enhanced offender monitoring, and integrated mental-health crisis response models.
• Transportation, Infrastructure, and Public Works:The new additions to this section provide additional guidance on key initiatives such as infrastructure improvements,
Council Packet - November 17, 2025
2026 Legislative Platform., Page 2
modernization, and regional collaboration across transportation, water, and energy systems.
The draft 2026 Legislative Platform was posted on the City's website on October 28, 2025, and shared to all subscribers on the City website. As of November 11, [amount] comments have been received.
Upon approval, the 2026 Legislative Platform will be posted at laverneca.gov/legislation and will
take effect immediately. It will be posted on the City website and distributed to the City's elected officials.
FISCAL ANALYSIS
None.
ENVIRONMENTAL ANALYSIS
None.
LEGAL REVIEW
This report was reviewed and approved by the City Attorney.
ATTACHMENTS
1. Draft 2026 Legislative Platform
Council Packet - November 17, 2025
1 CITY OF LA VERNE 20256
LEGISLATIVE PLATFORM
PURPOSE
The 20256 Legislative Platform provides a framework for the City of La Verne’s Legislative Program.
Adopted annually, the City’s Legislative Platform serves as a reference guide for legislative positions and objectives that provide direction for City Staff throughout the year. The Legislative Platform is an embodiment of the City Council Goals and is the foundation of a strategic and focused advocacy strategy. Below are the Guiding Principles and Policy Statements that will allow City staff to address 2025 legislative and regulatory issues in a timely manner, without precluding the consideration of additional legislative and budget issues that may arise during the legislative session.
GUIDING PRINCIPLES
I. PRESERVE LOCAL CONTROL
Preserve and protect the City’s powers, duties and prerogatives to enact local legislation and policy direction concerning local affairs and oppose legislation that preempts local authority. Local agencies should preserve authority and accountability for revenues raised and services provided.
II. PROMOTE FISCAL STABILITY
Support measures that promote fiscal stability, predictability, financial independence, and preserve the City’s revenue base and maximum local control over local government budgeting. Oppose measures that shift local funds to the County, State or Federal Governments and/or make cities more dependent on the County, State or Federal Governments for financial stability, such as unfunded mandates or mandated costs with no guarantee of local reimbursement or offsetting benefits.
III. SUPPORT FUNDING OPPORTUNITIES
Support opportunities that allow the City to compete for its fair share of regional, state and federal funding. Support funding for programs including, but not limited to economic development such as infrastructure investment and housing, transportation projects including road resurfacing, bicycle and pedestrian safety, multi-modal transportation systems and transit-oriented development, air quality, water quality and local water reliability, parks and recreation, historic preservation, natural resources, hazard mitigation, public safety and public health.
Council Packet - November 17, 2025
2 POLICY STATEMENTS
Community and Recreation Services
1. Support legislation that strengthens public health, enhances community cohesion, and promotes environmental sustainability.
2. Support continued state funding for local art, cultural, and music programs.
3. Support legislation that provides funding to reduce or eliminate fees for recreational programs for low-income families, seniors, and marginalized communities. This could include grants for municipalities to develop low-cost or free access to parks, recreation centers, and after-school programs.
4. Support safety improvements in recreational spaces, such as lighting, surveillance, and community policing initiatives. This also includes support for community-based programs that bring residents together to address safety concerns and foster a sense of belonging.
5. Support local government funding opportunities for new recreation resources and for ongoing operations and maintenance of existing parks.
6. Support legislation that distributes bond funds as competitive monies to a range of State agencies and does not limit funds based on geographic location or scope of need.
7. Support legislation for funding opportunities for ADA facility and park upgrades.
8. Support non-emergency human services and disaster information resources that create a reliable safety net that helps individuals meet critical needs, not only in response to disasters but also as they navigate everyday challenges. This support helps to build a more resilient, informed, and connected community capable of withstanding and recovering from a variety of disruptions.
9. Oppose legislation that proposes significant cuts to funding for community centers, parks, after-school programs, and recreational services.
Economic Development
10.1. Support international, statewide, regional, and local efforts to attract, retain, and provide resources for current and future commercial and industrial businesses.
11.2. Support policies and programs that encourage working with other cities, counties and government agencies to jointly leverage resources and assets to create and strengthen economic clusters within the region.
12.3. Support policies, projects, programs, and regulations for diversifying La Verne’s manufacturing base and facilitating investment in the City’s industrial areas that will result in maintaining or growing local jobs and creating an environment that is attractive to high tech, research and development, business incubators, manufacturers, transportation and warehouse logistic companies, services, and other emerging industries.
13.4. Support economic development initiatives that preserve and enhance a positive business climate and maintain and grow the business tax base.
14.5. Support efforts to allow cities to recapture the true values of redevelopment and successor agency funds.
Environment
15.6. Support continued funding and incentives to local agencies to work together to improve air quality through the reduction of emissions and advancing economic and technical developments.
Council Packet - November 17, 2025
3 16.7. Support and monitor legislation that increases the availability of, and funding for, water conservation, water reuse technologies, water recycling, local water storage, storm water, and other water supply technologies such as the Groundwater Replenishment System project.
17.8. Monitor the development of a state framework for long term water conservation measures and advocate for a science-based approach to indoor water use standards.
18.9. Support efforts to streamline and improve the state and federal environmental review processes and prevent environmental review from being weaponized to the City’s detriment.
19.10. Support funding for the retrofitting of municipal buildings to increase energy efficiency.
20.11. Support legislation and funding that assist cities and local businesses with state mandated organics recycling requirements.
21.12. Support policies that provide funding and flexibility for performing wildfire fuel modification.
Governance and Transparency
22.13. Support local government action, rather than the imposition of state, federal or regional mandates upon local governments, as well as federal mandates placed on the state.
23.14. Support maximum flexibility for local government in contracting and contract negotiations.
24.15. Support open government initiatives as well as the principles of the open meetings provisions of the Ralph M. Brown Act at all levels of government.
25.16. Support efforts to provide local legislative bodies with additional flexibilities regarding remote meetings and Ralph M. Brown Act requirements
26.17. Support legislation that preserves the ability of local governments to determine the appropriate type of election for their jurisdiction.
27.18. Support efforts by the State to increase funding into the California State Controller’s State Mandated Programs reimbursement program.
28.19. Oppose legislation and unfunded mandates imposing impractical requirements on records collection and retention.
29.20. Oppose policies that would increase the voter threshold for local revenue measures or would increase the potential for litigation over local taxes and fees.
30.21. Oppose legislation that would lessen the ability of local governments to enforce contractual language agreed to and contained within existing franchise documents.
Homelessness
31.22. Support the allocation of new funding for homelessness services, the construction of transitional housing facilities, and transport destinations.
32.23. Support legislation that requires counties to partner with cities when receiving a direct allocation of homeless funds and has a regional focus.
33.24. Support legislative changes to Coordinated Entry requirements that allow local governments to prioritize based on local unsheltered needs.
34.25. Support legislative efforts that have a focus on keeping people in housing, once placed, for many years.
35.26. Support investments in mental health treatment across the continuum of care,
Council Packet - November 17, 2025
4 including efforts to support or encourage the creation of additional board and care beds as well as subacute treatment and psychiatric skilled nursing facilities.
36.27. Support for funding sources to develop local Homelessness Plans.
Housing, Community Development, and Land Use
37.28. Support incentive-based housing legislation to encourage expanding housing supply in the City, including flexibility for local jurisdictions to work together to provide housing that counts towards Regional Housing Needs Assessment (RHNA) requirements.
38.29. Support legislation that preserves local discretion in the assessment, collection, and usage of development fees.
39.30. Support housing policies that maintain local control and allow local governments to make decisions on local zoning and density requirements.
40.31. Support legislation that preserves local flexibility in the adoption and implementation of health and safety standards contained in the building codes.
41.32. Support funding and tax incentives for the identification, acquisition, maintenance, adaptive reuse, and restoration of historic sites and structures.
42.33. Support housing measures that promote the development and enhancement of safe and affordable housing and accessible housing within the City for all economic segments of the population, while still retaining local control.
43.34. Support legislation that maintains City authority over the conditions and classifications of mobile home park residencies within the eight mobile home parks located and/or operated by the City.
44.35. Support policies and funding that supports affordable housing production for seniors.
45.36. Support changes to RHNA methodology that is flexible and considers the demographics, geography, land use patterns, socio-economic makeup of the community, job growth and housing needs so the difference of each community is carefully considered.
46.37. Support legislation that protects areas designated as single-family homes as the City recognizes the benefits of having single-family homes as an alternative for housing.
47.38. Support policies and funding for wildfire resilience for communities within very high fire hazard severity zones.
48.39. Oppose additional affordable housing production mandates unless funding is appropriated to finance the mandate.
49.40. Oppose legislation that prohibits the imposition of parking minimums.
50.41. Oppose legislation that further expands the applicability of ministerially streamlined developments within the City that are not consistent with the General Plan.
Human Resources and Risk Management
51.42. Support pension reform measures designed to control or decrease employer liability or increase transparency in reporting without imposing undue hardships or administrative burdens on local government.
52.43. Support policies that streamline alternative dispute resolution processes for employees that utilize service credits.
53.44. Oppose measures that reduce local control over employee relations issues or
Council Packet - November 17, 2025
5 mandate new or enhanced local government employee benefits.
54.45. Oppose measures that impose compulsory and binding arbitration with respect to employees.
55.46. Oppose redundant or unnecessary proposals that require excessive human resources burdens without sufficient reimbursement.
Parks & Recreation Services
47. Support legislation that provides stable, ongoing funding for parks and recreation without unfunded mandates.
48. Oppose efforts to shift state or federal responsibilities for recreation programs or maintenance onto local agencies without appropriate funding.
49. Support increased flexibility in the use of grants and bond funds to meet local community priorities.
50. Support inclusive recreation programs that serve all abilities, ages, and cultural backgrounds
51. Support dedicated funding streams for the development, renovation, and maintenance of park and recreation facilities.
52. Support legislation that provides local flexibility in financing recreation capital projects, including public-private partnerships.
53. Support infrastructure initiatives that enhance ADA accessibility, safety, and sustainability in all public parks and facilities.
54. Support policies and funding that expand access to recreation programs promoting physical activity, mental health, and social connection.
55. Support partnerships with schools, nonprofits, and health agencies to improve community wellness through recreational programming.
56. Support equitable pricing and access to recreational programs for youth, seniors, and low- income families.
57. Oppose any legislative action that would reduce public access to community recreation facilities or increase barriers to participation.
58. Support state and federal grant programs such as the Land and Water Conservation Fund and Proposition 68 that invest in park infrastructure and conservation.
59. Support safety improvements in recreational spaces, such as lighting, surveillance, and community policing initiatives. This also includes support for community-based programs that bring residents together to address safety concerns and foster a sense of belonging.
Public Safety
60. Support measures that encourage community safety and well-being including those that support state and federal reimbursement of homeland security-related expenses.
56.61. Support measures for integrated emergency response systems, regionalized dispatch centers, and technology upgrades that enhance interoperability among public safety agencies.
62. Support legislation that provides for greater penalties associated with organized retail theft operations.
57.63. Support multi-jurisdictional task force funding to address organized criminal enterprises, catalytic converter theft, copper theft, and other coordinated property crimes that
Council Packet - November 17, 2025
6 impact local communities.
58.64. Support legislation that allows local governments greater flexibility in controlling speed limits and imposing fines for traffic violations.
65. Support legislation affirming the ability of local government to restrict the presence and residency of sex offenders near schools, parks, and other locations frequented by children.
59.66. Support enhanced tracking and notification systems for registered offenders to improve community awareness and coordination with local law enforcement.
67. Support policies that restrict persons with mental health disorders from possessing or owning a firearm.
60.68. Support funding for mental health crisis intervention programs, such as co-responder models pairing officers with behavioral health professionals, to ensure safe and effective responses to mental health-related incidents.
61.69. Support local control of emergency medical services and ambulance service, including pre-hospital care and transport.
62.70. Support legislation that aids paramedics and other emergency medical service practitioners in their ability to be responsive to community needs.
63.71. Support legislation that provides funding for programs that are critical to Fire Suppression, Fire Prevention, and Emergency Medical Services.
64.72. Support initiatives that foster safety for firefighters and the public, including utilization of detection devices that suppress harmful elements, toxic chemicals, and known carcinogens.
65.73. Support wildfire-related legislation that provides funding opportunities to bolster community resilience to areas located in Very High Fire Hazard Severity Zones.
66.74. Support for programs that enhance fire and emergency training and response capabilities.
67.75. Support legislation aimed at community paramedicine efforts, or other alternative response methods.
68.76. Oppose legislation that would interfere with the ability of law enforcement to remove individuals, either in person or in a vehicle, from public facilities, property, or streets.
69.77. Oppose legislation that would interfere with a City’s ability to use emerging technology to bolster law enforcement efforts.
70.78. Oppose legislative attempts at early release of incarcerated prisoners and measures that would further de-criminalize non-violent offenses.
71.79. Oppose legislation that usurps local discretion with the operation of marijuana retail sites and delivery.
72.80. Oppose legislation that places burdensome restrictions on law enforcement and limits their ability to protect public safety.
73.81. Oppose legislation that reduces the local fire authority having jurisdiction's ability to condition developments in the name of increased housing.
Transportation, Infrastructure, and Public Works
74.82. Support working with regional partners—governmental, private, and nonprofit—to identify and pursue funding for projects improving infrastructure within the City.
Council Packet - November 17, 2025
7 75.83. Support funding for non-motorized/active transportation infrastructure such as bicycle trails and pedestrian access.
76.84. Support legislation that protects local government authority over telecommunications facilities placed within public right-of-ways to include the aesthetics of equipment installed by contractors.
77.85. Support the preservation and expansion of transportation grant funding opportunities to help incorporate new transportation technologies and practices into local transportation networks.
78.86. Support efforts that streamline funding between the state, federal, and local governments that help reduce the amount of time and resources it takes to fund and complete transportation projects.
79.87. Support protection of dedicated transportation-related tax revenues and enhance the ability of local agencies to finance local transportation programs and facilities.
88. Support legislation for funding opportunities to expand local infrastructure for electronic vehicle charging stations.
89. Support flexibility in the use of transportation revenues (Gas Tax, Measure M, Measure R) for multimodal, safety, and complete streets improvements.
90. Support development of performance-based funding programs that reward jurisdictions maintaining pavement condition and safety targets.
91. Support Safe Routes to School and Active Transportation Program investments that prioritize small cities and suburban contexts.
92. Support state and federal funding for climate-resilient infrastructure, including storm drain upgrades, flood control, and wildfire mitigation measures protecting transportation and utility corridors.
93. Support technical and financial assistance programs for local hazard mitigation, energy resilience, and traffic signal battery backup systems.
94. Support state and federal programs that assist cities with undergrounding utilities to improve reliability and aesthetics.
95. Support funding for local water and wastewater infrastructure modernization, including replacement of aging pipelines, SCADA systems, and PFAS treatment facilities.
96. Support streamlined permitting and grant processes for small and mid-sized cities undertaking critical infrastructure replacement projects.
97. Support integration of transportation, water, sewer, and stormwater infrastructure planning with regional sustainability and climate adaptation goals.
98. Support regional collaboration and funding for grade-separated rail crossings, traffic signal synchronization, and corridor safety improvements, and quiet zones.
80.99. Oppose legislation or regulations that impose unfunded mandates or link infrastructure funding eligibility to unrelated policy areas.
81.100. Oppose legislation that conditions a city’s share of transportation funding on housing-related goals.
Council Packet - November 17, 2025
City of La Verne,City Council
Agenda Report
DATE: November 17, 2025
TO: Honorable Mayor and City Council
FROM: Cody Howing, City Engineer
SUBJECT: AWARD OF CONTRACT FOR THE CITYWIDE SIGNING & STRIPING, AND TRAFFIC SIGNAL BACKPLATE IMPROVEMENT PROJECT.
SUMMARY
This action will award a construction contract to Superior Pavement Markings in the amount of $365,483.00 for CIP No. MI2402 – Citywide Signing & Striping, and Traffic Signal Backplate Improvement Project. Project Funding is provided through a combination of Gas Tax Funds (Fund 206) and Right-of-Way Funds (Fund 406) and will support miscellaneous traffic signage and striping improvements, school zone crosswalk enhancements, and traffic signal restoration at various locations throughout the City.
RECOMMENDATION
That the City Council:
1. Reject the bids submitted by Select Electric Inc. and California Professional Engineering, Inc. as non-responsive bids;
2. Award a public works construction contract to Superior Pavement Markings the lowest, responsive and responsible bidder, in the amount of $365,483.00 for the Citywide Signing & Striping Project, and Traffic Signal Backplate Improvement Project; and
3. Authorize staff to issue change orders not exceeding 10% of the construction budget for a total possible construction contract cost of $402,031.30; and
4. Authorize the City Manager to issue a purchase order to RKA Consulting Group in the amount of $45,000 for Professional Engineering and Construction Management/Inspection Services related to the project; and
5. Approve the “Citywide Signing & Striping Design Plans,” prepared by RKA Consulting Group, making the findings required under Government Code §830.6, and authorizing the City Engineer to issue clarifying revisions and field adjustments that do not materially alter the approved design intent.
DISCUSSION
On October 30, 2025 five sealed bids were opened for the Citywide Signage & Striping, and Traffic Signal Backplate Improvement Project. The locations of proposed work include replacement of roadway striping on Baseline Road from West City Limit to East City Limit, Bonita Avenue from West City Limit to Wheeler Avenue, and Fruit Street from Foothill Boulevard to Baseline Road. All noted roadway segments have shown signs of degradation on the paint-based striping and require replacement to return conditions to acceptable standards. New striping will also conform to current Caltrans standards, which in most cases
Council Packet - November 17, 2025
Award of Contract for the Citywide Signing & Striping, and Traffic Signal Backplate Improvement Project., Page 2
will result in wider striping to enhance visibility of the markings.
Thermoplastic is also a more durable material than traffic paint and is anticipated to last the duration of the pavement surface to the next cycle of surface maintenance work. This extended performance reduces the life cycle cost of striping when compared to traffic paint while also enhancing safety for users of the roadway.
To complement the primary scope of work, additional improvements to school zone crosswalks to transition standard crosswalks to “hi-visibility” standards will be implemented. The project also includes the replacement of traffic signal mounted signage that has faded due to environmental exposure while also conducting the replacement of traffic signal head backplates with new units enhanced with reflective borders. These enhancements are intended to boost the visibility of roadway details and improve safety on the City’s streets. According to the Federal Highway Administration, studies have shown that the installation of retroreflective backplates as signalized intersections has led to a significant reduction in total collisions nationwide, with decreases ranging from 15% to 24%.
The Citywide Signing & Striping Design Plans were prepared under the responsible charge of a licensed professional engineer and conform to applicable state and federal standards, including the California Manual on Uniform Traffic Control Devices (CA-MUTCD) and Caltrans Standard Plans. Staff finds the design to be reasonable and appropriate for the existing roadway conditions and consistent with accepted engineering judgment. The following is a summary of the bid results:
Bidder Total Base Bid Additive Alternate
Items AA1-AA3
Select Electric, Inc.* $306,370.00* $21,546.00*
California Professional Engineering,
Inc.*
$323,426.30* $21,473.95*
Superior Pavement Marking $349,810.00 $15,673.00
WGJ Enterprises Inc. dba PCI $471,280.00 $17,975.00
Cat Tracking, Inc. $614,900.00 $36,250.00
*Both Select Electric Inc. and California Professional Engineering, Inc. submitted bids that did not satisfy the contract requirements for self-performance.
The Engineer’s estimate for the base bid scope of this project was $370,000. Features of this project reflect a modified scope from the project that opened bids under the title of “Citywide Signing and Striping Project” in September 2025. Due to only one lowest responsible bidder being identified, the City Council rejected all the bids submitted for that project and directed City staff to re-bid the project.
For this project, City staff are recommending that the lowest two bids be rejected on the basis of being non-responsive. The issue with the first and second-lowest bids that were submitted was a failure by both contractors to meet the self-performance requirements. In order to meet the
Council Packet - November 17, 2025
Award of Contract for the Citywide Signing & Striping, and Traffic Signal Backplate Improvement Project., Page 3
requirements of being a prime contractor, at least 50% of the work based on cost shall be completed by their own forces. The bid submitted by Superior Pavement Markings is below the Engineer’s Estimate for the base bid scope of work and meets the minimum criteria for being responsive, and thus deemed valid for consideration of contract award based on city staff analysis.
City staff have conducted a license check and analyzed the bid submitted by Superior Pavement Marking. The firm meets the required contractor licensing and is not listed on the Federal Exclusion List for projects of this type. Staff have also verified the Contractor’s Department of Industrial Relations registration as active at the time of bid opening.
FISCAL ANALYSIS
The total budgeted project funding for this work is $465,000 including $315,000 in Gas Tax Funds (206) and $150,000 in ROW Funds (406). The City Council previously appropriated funds for this capital improvement project under CIP No. MI2402. A summary of the total project cost is outlined below. In addition to the construction contract cost of $365,483.00 and construction contingency (10%) of $36,548.30 (outlined within the City’s purchasing policy and in line with Public Contract Code), the project budget also includes a budgeted allowance of up to $45,000.00 for RKA Consulting Group to cover design, construction management, construction inspection and other related costs required for the City to facilitate construction of the project. The resulting sum of these project-related costs is the following:
Construction Contract (Base) $349,810.00
Recommended Additive Alt Scope $15,673.00
10% Construction Contingency $36,548.30
Professional Services (RKA Consulting Group) $45,000.00 Total Estimted Cost: $447,031.30
Total Project Budget: $465,000.00
ENVIRONMENTAL ANALYSIS
This project is categorically exempt from the California Environmental Quality Act, Section 15301 Existing Facilities, and City of La Verne environmental guidelines.
LEGAL REVIEW
The City Attorney has reviewed this report and concurs with the recommendations. Approval of the design plans by the City Council constitutes a discretionary policy decision under Government Code §830.6 and provides the basis for design immunity, as substantial evidence supports the reasonableness of the engineering design plans prepared by RKA Consulting Group in accordance with Caltrans and CA-MUTCD.
ATTACHMENTS
1. Bid Results Summary
Coordinated with:
Danny Wu, Director of Public Works
Council Packet - November 17, 2025
BID DATE: 10/30/2025 Summary of proposals received for:
(909) 594-9702 TIME: 10:00 A.M.
FAX (909) 594-2658 PLACE: La Verne City Hall
398 Lemon Creek Drive, Suite E • Walnut, CA 91789
Computed By: DD
Item
No.
A-1 Mobilization 1 LS $20,000.00 $20,000.00 $18,892.00 $18,892.00 $11,500.00 $11,500.00 $25,000.00 $25,000.00 $34,000.00 $34,000.00 $65,500.00 $65,500.00 A-2 Traffic Control 1 LS $34,000.00 $34,000.00 $27,984.00 $27,984.00 $16,500.00 $16,500.00 $10,000.00 $10,000.00 $15,040.00 $15,040.00 $75,500.00 $75,500.00 A-3
Remove Conflicting Striping, Pavement Markings,
& Reflective Pavement Markers and Install
Thermoplasctic Striping at Baseline Rd. from West
City Limit to East City Limit 1 LS
$95,000.00 $95,000.00 $103,566.00 $103,566.00 $103,218.25 $103,218.25 $85,755.00 $85,755.00 $145,050.00 $145,050.00 $162,500.00 $162,500.00 A-4
Remove Conflicting Striping, Pavement Markings,
& Reflective Pavement Markers and Install
Thermoplasctic Striping at Bonita Ave. from West
City Limit to Wheeler Ave. 1 LS
$50,000.00 $50,000.00 $57,154.00 $57,154.00 $56,961.80 $56,961.80 $46,532.00 $46,532.00 $65,370.00 $65,370.00 $68,000.00 $68,000.00 A-5
Remove Conflicting Striping, Pavement Markings,
& Reflective Pavement Markers and Install
Thermoplasctic Striping at Fruit St. from Foothill
Blvd. to Baseline Rd. 1 LS
$40,000.00 $40,000.00 $38,010.00 $38,010.00 $37,882.25 $37,882.25 $29,941.00 $29,941.00 $43,635.00 $43,635.00 $94,000.00 $94,000.00 A-6
Remove all Existing and Install New Traffic Signal
Head Backplates with Retroreflective Borders at
Intersections Listed as Group A, Exhbit B of
Appendix A 1 LS
$75,000.00 $75,000.00 $28,430.00 $28,430.00 $45,942.00 $45,942.00 $84,261.00 $84,261.00 $92,715.00 $92,715.00 $80,000.00 $80,000.00 A-7
Remove all Existing and Install New Traffic Signal
Head Backplates with Retroreflective Borders at
Intersections Listed as Group B, Exhbit B of
Appendix A 1 LS
$50,000.00 $50,000.00 $28,430.00 $28,430.00 $49,400.00 $49,400.00 $66,561.00 $66,561.00 $72,670.00 $72,670.00 $64,000.00 $64,000.00 A-8
Remove Existing and Install New Sign from the
Signal Traffic Poles and Mast Arm at Various
Intersections of La Verne 8 EA
$750.00 $6,000.00 $488.00 $3,904.00 $253.00 $2,024.00 $220.00 $1,760.00 $350.00 $2,800.00 $675.00 $5,400.00 Additive
Alternates
AA-1
Remove Existing and Install Yellow "Ladder"
Thermoplastic Crosswalk for all Four legs of the
Intersection at E Street and 6th Street per Caltrans
Std. Plan A24F 1 LS
$6,000.00 $6,000.00 $7,717.00 $7,717.00 $7,691.20 $7,691.20 $5,688.00 $5,688.00 $6,325.00 $6,325.00 $14,500.00 $14,500.00 AA-2
Remove Existing and Install Yellow "Ladder"
Thermoplastic Crosswalk for the North Leg and
East Leg of the Interection at Gladstone Street
and Ramona Avenue per Caltrans Std. Plan A24F 1 LS $4,000.00 $4,000.00 $5,872.00 $5,872.00 $5,852.35 $5,852.35 $4,089.00 $4,089.00 $4,250.00 $4,250.00 $7,250.00 $7,250.00 AA-3
Remove Existing and Install Yellow "Ladder"
Thermoplastic Crosswalk at Wheeler and Oak
Mesa/Oak Ridge per Caltrans Std. Plan A24F 1 LS $4,000.00 $4,000.00 $7,957.00 $7,957.00 $7,930.40 $7,930.40 $5,896.00 $5,896.00 $7,400.00 $7,400.00 $14,500.00 $14,500.00 AA-4
Remove all Exisiting and Install New Traffic Signal
Head Backplates with Retroreflective Borders at
Intersections Listed as Group C, Exhibit B of
Appendix A 1 LS
$20,000.00 $20,000.00 $12,184.00 $12,184.00 $7,410.00 $7,410.00 $34,420.00 $34,420.00 $37,580.00 $37,580.00 $31,325.00 $31,325.00 $55,555.00
$526,835.00
The Ohio Casualty Insurance
Company
Asuzsa, CA 91702
562-218-0504
Total
$471,280.00
Total
Anaheim, CA 92806
619-460-6060
19062 San Jose Avenue
La Puente, CA 91748
626-80-1338
CITY OF LA VERNE
California Professional
Engineering, Inc.
WGJ Enterprises Inc., dba
PCI Cat Tracking, Inc.
17 Commercial Avenue1700 E. Via Burton
Riveside, CA 92507
951-682-1494
Unit Price Total
$614,900.00
Unit Price Total
$67,575.00
$682,475.00
Developers Surety and
Indemnity Company
975 W. 1st Street
$399,903.00
Ascot Surety & Casualty
Company
Unit Price
Unit Price
$349,810.00
Unit Price Total
$50,093.00
Unit Price Total
714-995-9100
$370,000.00
Total Alternate Bid
Total Bid (Base + Alternate) $404,000.00
Comments
Total Base Bid
Comments
Surety Fidelity And Deposit Company
of Maryland
Non-responsive due to not
meeting Self Performance
Unit Price
Endurance Assurance
Corporation
Total
$352,312.25
Unit Price Total
City Wide Signing & Striping, and Traffic Signal Back Plate Cypress, CA 90630
$28,883.95
Description Quantity Unit Unit Price
Engineer's Estimate
Select Electric, Inc. Superior Pavement Markings
5312 Cypress Street
Description Quantity Unit
$323,428.30
Total
Non-responsive due to not
meeting Self Performance
$33,730.00$34,000.00
Unit Price Total
Unit Price Total Unit Price Total
$340,100.00
$306,370.00
Council Packet - November 17, 2025
City of La Verne,City Council
Agenda Report
DATE: November 17, 2025
TO: Honorable Mayor and City Council
FROM: JR Ranells, Assistant City Manager
SUBJECT: AUTHORIZING THE EXECUTION OF A SIDE LETTER AGREEMENT
AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF LA VERNE AND THE LA VERNE CITY EMPLOYEES’ ASSOCIATION REGARDING UPCOMING HOLIDAY CLOSURES.
SUMMARY
The proposed side letter agreement to the Memorandum of Understanding (MOU) with the La Verne City Employees’ Association (LVCEA) will formalize City Council direction to close non- emergency public facilities in conjunction with the upcoming holiday season of Christmas and New Year’s.
RECOMMENDATION
That the City Council:
1. Authorize the City Manager to execute a Side Letter Agreement amending the Memorandum of Understanding between the City of La Verne and the La Verne City Employees’ Association; and
2. Authorize the Closure of City Hall to the public on December 24, December 25, December 29, December 30, December 31, 2025, as well as January 1, 2026; and
3. Authorize the Closure of the Police Department Records Division to the public on December 24, December 25, December 26, and, December 31, 2025, as well as January 1, and January 2, 2026.
DISCUSSION
Historically, La Verne City Hall, City Maintenance Yard, and Police Department Records Division employees have observed the holidays of Christmas Day and New Year’s Day. In conjunction with the holiday season, both facilities experience lighter than normal visitors desiring City assistance/services. This year, both holidays fall on a Thursday providing a unique opportunity to close facilities when they are substantially less busy and provide additional time off for City employees. Employees will utilize existing leave banks such as vacation leave and therefore will not create new expenses in conjunction with the proposed closure.
It is important to note that certain public services and functions will continue, such as necessary inspections, permitting processes, and of course, Police and Fire services. Online services such as the 24-Hour City Hall application will also still be available. In instances where critical functions have been identified by Departments that must continue, employees will be approved
Council Packet - November 17, 2025
Authorizing the Execution of a Side Letter Agreement Amending the Memorandum of Understanding Between the City of La Verne and the La Verne City Employees’ Association Regarding Upcoming Holiday Closures., Page 2
to work on a case by case basis.
As per State law, the City is required to meet and confer with recognized employee groups over wages, benefits, and working conditions. City staff engaged and received support of the closures and employees voluntarily utilizing their personal leave banks during the closures.
FISCAL ANALYSIS
There are no appropriations requested or additional expenditures from the General Fund needed for the recommended action(s). Existing employee leave banks will be utilized during the closure days which already obligate the City to pay for approved time off. New and or additional paid holidays are not being provided.
ENVIRONMENTAL ANALYSIS
Not applicable.
LEGAL REVIEW
This report was reviewed and approved by the City Attorney.
ATTACHMENTS
1. 2025 LVCEA Holiday Closure - Draft
Council Packet - November 17, 2025
SIDE LETTER AGREEMENT TO MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LA VERNE AND THE LA VERNE CITY EMPLOYEES’ ASSOCIATION
The City of La Verne (“City”) and the members of the La Verne City Employees’ Association (“Association”) entered into a Memorandum of Understanding (MOU) effective July 18, 2023 – June 30, 2025.
The City and Association are in the process of good faith negotiations on a successor MOU. The timing of the Holiday Closure falls prior to the conclusion of the current MOU.
Therefore, based on mutual interest, the City and Association would like to enter into a side letter agreement to address the 2025/26 Holiday Closure(s).
Pursuant to the provisions of the Meyers-Milias-Brown Act, this Side Letter of Agreement is entered into on this November 17, 2025, between the City and the Association.
Except as provided herein, all wages, hours and other terms and conditions of employment presently provided to the Association and contained in the MOU shall remain in full force and effect.
The City and the Association have met and conferred in good faith concerning the terms and conditions of this Side Letter Agreement and its implementation and now therefore agree that Article 14 of the current MOU effective July 2023 will be amended as follows by adding:
A. Holiday Closure – December 24, 2025, through January 4, 2026.
The City of La Verne will observe the following holidays as part of its annual holiday closure:
1. December 24, 2025, as a designated holiday for Yard employees.
2. December 25, 2025 (Christmas Day) and January 1, 2026 (New Year's Day) as City-wide holidays.
In addition to the aforementioned holidays, pursuant to City Council direction, the City will implement a holiday closure of City Hall, City Yard, and Police Records from December 24, 2025, through January 4, 2026. The City will resume normal operations at all City facilities on Monday, January 5, 2025.
Use of Accrued Leave. Association members will be required to use accrued leave to cover the four additional closure days (December 24, 29, 30, 31, 2025), during which City Hall will be closed. Employees may utilize the following accrued leave types to cover these additional days: vacation leave, floating holidays, and/or compensatory time.
Employees who do not have sufficient accrued leave to cover these four additional days from vacation, floating holiday, and compensatory time banks may be permitted to carry a negative vacation leave balance, subject to the following conditions:
1. All previously accrued vacation has been exhausted
2. The negative leave balance will be offset by future accruals.
3. Any employee who separates from City employment while holding a negative leave balance shall have the outstanding amount deducted from their final paycheck.
** Employees who do not have sufficient accrued leave above may use up to the equivalent of two (2) days of sick leave to offset the negative impact to vacation leave accrual(s)
Council Packet - November 17, 2025
Special Accommodations for Essential Personnel. The City recognizes that certain positions and responsibilities cannot accommodate the full holiday closure due to the necessity of providing essential services. Department directors will work with individual employees and divisions to determine equitable alternatives for those employees.
For City Yard employees, modified schedules and standby arrangements have already been developed and agreed upon to ensure minimum staffing levels in the following divisions: Water Production & Operations, Parks, Streets/Maintenance, Mechanics Shop.
For the Police Records Division, operations will continue as follows:
1. The office will remain open on Monday, December 22, 2025, and Tuesday, December 23, 2025.
2. The office will also be open on Monday, December 29, 2024, and Tuesday, December 30, 2025.
3. The office will be closed from Wednesday through Friday for both holiday weeks.
This agreement outlines the expectations and responsibilities for the City of La Verne employees regarding the holiday closure. All employees and management are expected to comply with the terms herein.
DATED ___________________________ DATED __________________________
LA VERNE CITY EMPLOYEES’ ASSOC. CITY OF LA VERNE
By _______________________________ By _______________________________
LVCEA Representative Ken Domer, City Manager
By _______________________________ By ________________________________
LVCEA Representative JR Ranells, Asst. City Manager
Council Packet - November 17, 2025
City of La Verne,City Council
Agenda Report
DATE: November 17, 2025
TO: Honorable Mayor and City Council
FROM: Ken Domer, City Manager
SUBJECT: PUBLIC HEARING, MAKING CEQA EXEMPTION DETERMINATIONS, AND
APPROVING UPDATES AND ANNUAL COST INCREASES TO VARIOUS
DEVELOPMENT IMPACT FEES.
SUMMARY
The City of La Verne has completed a comprehensive Development Impact Fee (DIF) Nexus Study to evaluate facilities, equipment, and capital improvements necessary to maintain high- quality municipal services as new development occurs in the coming decades. The study establishes legally defensible fees that ensure new development contributes proportionately to the cost of public facilities. Staff recommends adoption of the proposed fees and Nexus Study to modernize La Verne’s impact fees, most of which have not been updated for many years.
RECOMMENDATION
That the City Council:
1. Conduct a public hearing on the proposed Development Impact Fee update; and
2. Find that the actions proposed herein are statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15378 (b) (4), 15061 (b) (3), and 15273 (Rates, Tolls, Fares, and Charges); and
3. Adopt a resolution titled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA VERNE, CALIFORNIA, UPDATING THE DEVELOPMENT IMPACT FEES AND AMENDING THE COMPREHENSIVE FEE SCHEDULE FOR FISCAL YEAR 2025-26; and
4. Approve annual adjustments tied to the California Construction Cost Index (CCCI) to account for inflation in construction and acquisition costs.
DISCUSSION
Development Impact Fees are one-time charges imposed on new development to offset the cost of public facilities needed to serve that growth. These fees are authorized under California’s Mitigation Fee Act (Government Code §§66000–66025) and must be supported by a nexus study that demonstrates the relationship between the fee, the impacts of development, and the facilities to be funded. In California, Government Code section 66016.5(a)(6) requires local agencies to update their nexus studies at least once every eight years. A nexus study must be in place before any new or increased fees are adopted.
La Verne’s existing fees, including fire, parks, storm drain, undergrounding, and housing linkage, were first adopted between 1987 and 2006, with no significant updates since that time.
Council Packet - November 17, 2025
Public Hearing, Making CEQA Exemption Determinations, and Approving Updates and Annual Cost Increases to Various Development Impact Fees., Page 2
Recognizing the need for modernization, the City Council approved a contract in February 2024 with David Taussig & Associates to conduct a new evaluation, ensuring the fees reflect today’s conditions and the City’s future needs. Without such updates, the City risks underfunding vital infrastructure, which would shift the costs of growth onto current residents.
Why Development Impact Fees Are Needed
As La Verne evolves, new housing developments gradually increase demand on public services and infrastructure. Residents already value reliable emergency response, well-maintained parks, functioning stormwater systems, and efficient City services. Without updated impact fees, these quality-of-life elements could erode, as the cost of new facilities would otherwise fall to existing taxpayers. DIFs are therefore a tool of fairness; they ensure that growth pays its fair share, ensuring the preservation of current levels of service without causing fiscal impacts to current residents.
Another important safeguard is accountability. By law, DIF revenues are restricted and can only be used for the specific facilities identified in the nexus study. They cannot be redirected to unrelated purposes, ensuring transparency and trust that every dollar collected supports the improvements the community actually needs.
Assessment of City Facilities - Inventory and Facilities Needs List In 2024, the City completed a comprehensive assessment of its existing facilities and public infrastructure needs. This evaluation, included as Appendix B to the draft Nexus Study, identifies future facilities and associated construction costs through the Facilities Inventory and Needs List found in the Fee Study appendix.
Current facilities adequately serve the City’s existing population. However, as new development occurs, it will generate additional demand for public facilities. To ensure service levels are maintained, Development Impact Fees (DIFs) will fund the acquisition, installation, and construction of facilities identified in the Needs List, along with eligible administrative costs.
These fees are required to mitigate the direct and cumulative impacts of future development and will be used solely for the purposes for which they are collected.
Proposed Development Impact Fees & Maximum Allowable Rates The updated fees include both revisions to existing categories and the introduction of new categories to capture needs not previously addressed.
•
Updated Fees: Fire, Parks and Recreation, Storm Drain, and Undergrounding have long been part of La Verne’s fee structure. These categories are updated to reflect modern costs and facility standards.
• New Fees: City Administration and Police fees are newly established categories. These ensure that general government operations and public safety resources, including administrative space, vehicles, and equipment, are appropriately expanded as the City grows.
The study distinguishes between two fee-setting approaches:
Council Packet - November 17, 2025
Public Hearing, Making CEQA Exemption Determinations, and Approving Updates and Annual Cost Increases to Various Development Impact Fees., Page 3
• Standards-Based Fees are calculated by applying an adopted service standard (e.g., acres of parkland per 1,000 residents, fire apparatus per service population, or square footage of administrative space per employee) to projected growth. These fees ensure that as the community grows, facilities keep pace with established levels of service. In La Verne, the City Administration, Police, Fire, and Parks categories are standards-based. • Plan-Based Fees are calculated by identifying specific projects or capital improvements in the City’s adopted plans and allocating a share of their costs to new development. This method is used when future facility needs are tied to defined infrastructure projects. In La Verne, the Storm Drain and Undergrounding categories are plan-based.
Through this analysis, the Nexus Study identifies the maximum allowable DIFs, as identified in the table below.
The nexus study establishes the maximum legally justifiable fees under state law. The City Council has the discretion to adopt lower amounts, but cannot exceed the maximum levels calculated. This flexibility allows the Council to balance fiscal sustainability with broader community concerns.
Proposed Fee Increase Amount
While the Nexus Study establishes the maximum legally justifiable fee levels, the City Council has the discretion to adopt fees below that ceiling. Cities often choose not to impose the maximum in order to balance multiple priorities: keeping new housing and commercial development financially feasible, maintaining regional competitiveness, responding to community concerns about rising costs, and preserving flexibility for future adjustments. The City is proposing, instead of adopting the maximum allowable development impact fee rates, to instead propose a lower amount, as identified in the table below for the City Administration Fee, which reflects a reduction of 51%.
Council Packet - November 17, 2025
Public Hearing, Making CEQA Exemption Determinations, and Approving Updates and Annual Cost Increases to Various Development Impact Fees., Page 4
By adopting the City Administration fee at approximately half of the maximum amount, La Verne can still generate significantly more revenue than under the current outdated schedule, ensuring that growth contributes fairly to infrastructure needs while also demonstrating sensitivity to both economic realities and resident concerns.
Comparison Between Current and Proposed Fees
It is difficult to conduct a direct, category-by-category analysis of how much the proposed Development Impact Fees have increased from the City’s current fees because the methodologies are fundamentally different. The City’s existing fee structure generally charges on a per-unit basis, whereas the updated program calculates all residential fees on a per– square-foot basis as required under AB 602.
To provide a meaningful comparison, staff evaluated a newly constructed typical single-family residence in La Verne using the community’s average square footage of 1,706 square feet. The table below provides a breakdown of the total DIFs per scenario and the percent change.
Regional Comparisons
As part of the evaluation, the City reviewed development impact fees (DIFs) from surrounding San Gabriel Valley jurisdictions to identify potential fee categories for consideration and to conduct a cost comparison. Some neighboring cities were not included because their DIFs are determined on a project-by-project basis and could not be shared for this study. Among the selected cities, La Verne’s current fees are among the lowest in the region, while the proposed schedule would bring the City closer to the regional median. It should be noted that some neighboring jurisdictions have not updated their programs in many years, while others are in the process of doing so. The accompanying graph provides a snapshot in time and will change as cities adjust their fees in compliance with AB 602, as the City is doing now.
These comparisons provide helpful context but should not be viewed as the determining factor.
Each city’s fees are unique to its own growth projections, facility lists, and service standards.
For La Verne, the proposed fees represent the resources required to meet the City’s specific needs over the next 20 years. By adopting them, the City protects its residents from degraded
Council Packet - November 17, 2025
Public Hearing, Making CEQA Exemption Determinations, and Approving Updates and Annual Cost Increases to Various Development Impact Fees., Page 5
service levels while still maintaining fees that are competitive regionally.
Draft Nexus Study Posted Notices
On October 7, 2025, the draft Nexus Study was posted on the City website for review and a notice of public hearing was included in the Daily Bulletin on October 10, 2025 and October 17, 2025. The notice of public hearing was also emailed on October 13, 2025 to representatives from SoCal Gas, Southern California Edison, and the Building Industry Association of Southern California. As of November 11, 2025, [amount] of comments were received.
Next Steps
If adopted, the new Development Impact Fees and the update to the Master Fee Schedule for the new DIFs will take effect 60 days following adoption. The City is currently in the process of reviewing all related ordinances and developing new or amended ordinances to comprehensively address development impact fees and include new requirements per AB 602. This new ordinance is hoped to be presented to Council on December 1, 2025.
FISCAL ANALYSIS
No direct fiscal impacts to the City’s operating budget are expected as a result of this recommended action. Rather, DIFs are fees paid by new development to fund the capital cost of providing municipal facilities to serve the increased demands from that development. Since the City’s current adopted fees have not been updated in some time, varying by fee category, the recommended action will generate additional funds beyond those expected under the existing DIF schedule. The consequence of not updating the DIFs would be an inability of the City to keep up with the increased capacity needs created by new development, which would lead to a lower overall quality of life for both current and future residents.
ENVIRONMENTAL ANALYSIS
Adoption of the updated Development Impact Fee program does not constitute a project under the California Environmental Quality Act (CEQA), as it establishes a funding mechanism and does not directly approve or authorize construction. Each individual capital project funded through these fees will undergo separate CEQA review at the time of its proposal and implementation.
LEGAL REVIEW
The City Attorney has reviewed and approved this report.
ATTACHMENTS
1. Resolution No. 25-XX, Comprehensive Fee Schedule Fiscal Year 2025-26 DIF
2. Development Impact Fee Nexus Study
3. Surrounding Jurisdictions Assessment
Report Prepared By: Coordinated with:
Andrea Blockinger, Administrative Analyst David Taussig & Associates
Council Packet - November 17, 2025
RESOLUTION NO. 25-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA VERNE,
CALIFORNIA, UPDATING THE DEVELOPMENT IMPACT FEES AND AMENDING THE COMPREHENSIVE FEE SCHEDULE FOR FISCAL YEAR 2025-26
WHEREAS, the Municipal Code of the City of La Verne authorizes the City Council to establish, amend, or update fees for services, permits, and programs provided by the City; and
WHEREAS, the City has completed a Development Impact Fee (Nexus) Study to evaluate the facilities, equipment, and capital improvements necessary to maintain high-quality municipal services as new development occurs; and
WHEREAS, the Mitigation Fee Act (California Government Code §§ 66000 – 66025) authorizes local agencies to impose development impact fees to offset the cost of public facilities needed to serve new development, provided the fees are supported by a nexus study demonstrating the relationship between the fee, the development’s impacts, and the facilities funded; and
WHEREAS, the City’s previous development impact fees, including Fire, Parks and Recreation, Storm Drain, and Undergrounding, were last comprehensively updated between 1987 and 2006; and
WHEREAS, the 2025 Nexus Study, prepared by David Taussig & Associates and dated June 16, 2025, identifies six categories of Development Impact Fees (DIFs): City Administration, Police, Fire, Parks, Storm Drain, and Undergrounding; and
WHEREAS, the proposed fees ensure that new development contributes its fair share toward the cost of constructing and expanding public facilities necessary to maintain existing service levels, consistent with the requirements of AB 1600 and AB 602; and
WHEREAS, after notifying those parties interested in fee revisions the City provided public notice in accordance with Government Code Section 66016, published the notice of public hearing on October 10 and October 17, 2025, and posted the draft Nexus Study on the City’s website for public review on October 7, 2025; and
WHEREAS, the City Council conducted a duly noticed public hearing on November 17, 2025, to consider the proposed Development Impact Fees; and
WHEREAS, the City Council finds that the fees adopted by this Resolution represent the reasonable cost of providing the facilities and services required to mitigate the impacts of new development and that there is a reasonable relationship between the fee charged and the cost of those facilities;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Verne that Resolution No. 25-22 containing the established comprehensive fee
Council Packet - November 17, 2025
Reso No. 25-xx Page 2 of 2
schedule be amended and the amendments be incorporated with the content of Resolution No. 25-XX into the City’s 2025-26 Comprehensive Fee Schedule.
SECTION 1. The City Council hereby adopts the updated Development Impact Fees (DIFs) as identified in the City of La Verne Development Impact Fee Nexus Study, dated June 16, 2025, which is attached hereto and incorporated herein by reference. The fee categories include City Administration, Police, Fire, Parks and Recreation, Storm Drain, and Undergrounding. The specific fee amounts and methodology for calculation are set forth in the attached study.
SECTION 2. The Development Impact Fees shall be adjusted annually on July 1 of each year based upon the percentage change in the California Construction Cost Index (CCCI) for the preceding twelve-month period, to account for inflation in construction and acquisition costs.
SECTION 3. If any provision of this Resolution is held to be unconstitutional or unlawful, it is the intent of the City Council that such portion of this Resolution be severable from the remainder and that the remainder be given full force and effect.
SECTION 4. The Mayor shall sign and the Deputy City Clerk shall certify to the passage and adoption of this Resolution and a copy of this Resolution shall be posted for the information of the general public. Fees adopted in the “Comprehensive Fee Schedule” pursuant to this Resolution shall supersede any and all other fees previously set by resolution and shall take effect on January 16, 2026.
PASSED, APPROVED AND ADOPTED this 17th day of November, 2025.
Mayor Tim Hepburn
ATTEST:
Debra Fritz, Deputy City Clerk
CERTIFICATION
I hereby certify that the foregoing Resolution No. 25-XX was duly and regularly adopted by the City Council of the City of La Verne at a meeting thereof held on the 17th day of November 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Debra Fritz, Deputy City Clerk
Council Packet - November 17, 2025
Irvine | San Jose | San Francisco | Riverside
Dallas | Houston | Raleigh | Tampa
www.FinanceDTA.com
Public Finance
Public- Private Partnerships
Development Economics
Clean Energy Bonds
DEVELOPMENT IMPACT FEE
JUSTIFICATION STUDY
DRAFT
CITY OF LA VERNE
Report Date: June 16, 2025
Council Packet - November 17, 2025
www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
CITY OF LA VERNE
DEVELOPMENT IMPACT FEE STUDY UPDATE
DRAFT
Prepared for:
City of La Verne
A
ttention: Andrea Blockinger
Council Packet - November 17, 2025
TABLE
OF CONTENTS
SECTION PAGE
EXECUTIVE SUMMARY ................................................... 1 A Organization of the Fee Study ......................................... 1 B DIF Summary ....................................................................... 2 INTRODUCTION .............................................................. 4
LEGAL REQUIREMENTS TO JUSTIFY
DEVELOPMENT IMPACT FEES ...................................... 6 DEMOGRAPHICS ........................................................... 12 A Existing Residential Land Uses ...................................... 13 B Existing Non - Residential Land Uses ............................. 14 C Future Residential Land Uses (2040) ............................ 15 D Future Non - Residential Land Uses (2040) .................. 16 METHODOLOGY USED TO CALCULATE FEES ........ 17
A Standards - Based Fee Methodology .............................. 17 B Plan - Based Fee Methodology ........................................ 17 C Capacity- Based Fee Methodology ................................ 17 D Summary of Fee Methodology ....................................... 18 E Allocation of Benefit ........................................................ 19 F Calculation of Land Costs ............................................... 21 CALCULATION OF FEES ............................................... 23 A City Administration DIFs ................................................. 23 B Police DIFs .......................................................................... 30 C Fire DIFs .............................................................................. 37 D Parks DIFs ........................................................................... 45 E Storm Drain Fees ............................................................... 52 F Undergrounding Fees ...................................................... 60 SUMMARY OF FEES ....................................................... 67 IMPLEMENTATION OF FEE SCHEDULE ....................68
A The Collection of DIFs ..................................................... 68
Council Packet - November 17, 2025
B The Assignment and Expenditure of Fee Revenue ... 69 C Exemptions, Reductions, and Waivers ......................... 69 D Developer Improvement Credits ................................... 69 E Existing Development Credit ......................................... 70 F Annual Reporting and Accounting of Fees ................. 70 G Refunding Policy ............................................................... 71 H Annual Update of the Capital Improvement Plan
(“CIP”) .................................................................................. 72 I Administration Costs of Fee Implementation ............ 72 J Indexing of DIFs ................................................................ 73 K Updating the Fee Study ................................................... 73 L Administering a Fee Program ........................................ 73
APPENDICES
APPENDIX A FEE DERIVATION WORKSHEETS
APPENDIX B INVENTORY AND FACILITIES NEEDS
LIST
APPENDIX C PROPERTY INVENTORY FOR LAND
ACQUISITION COSTS
Council Packet - November 17, 2025
1 SECTION I
EXECUTIVE SUMMARY
City of La Verne June 16, 2025
DRAFT Development Impact Fee Justification Study
www.FinanceDTA.com
EXECUTIVE SUMMARY
In order to adequately plan for new development and identify the public facilities and costs associated with mitigating the direct and cumulative impacts of new development, DTA was retained by the City of La Verne, CA (the “City”) to update the existing impact fee program by preparing a new Assembly Bill (“AB”) 1600 fee justification study (the “Fee Study”). The previous fee justification study was completed in September of 2023 with the current fees based on the findings of that study. The categories of development impact fee (“DIFs” or “Fees”) to be determined by this Fee Study include six fees; four existing fees, (1) Fire, (2} Parks, Open Space and Recreation, (3) Storm Drain, and (4) Undergrounding and two new fees; (5) City Administration and (6) Police. The purpose of this Fee Study will be to ensure that all new development is required to pay its “fair share” of the cost of new infrastructure through the development fee program, by establishing a nexus between the anticipated development and public facilities needs for the City through 2040. This Fee Study is intended to comply with Section 66000 et seq.
of the Government Code, which was enacted by the State of California in 1987, by identifying additional public facilities required by new development (“Future Facilities”) and determining the level of fees that may be imposed to pay the costs of the Future Facilities. Although the City is currently considered to be “built-out”, there is currently potential growth through the addition of traditional infill development, or the potential that new development could replace older development either through changes in economic factors or rezoning to add new expansion. The Future Facilities and associated construction costs are identified in the Facilities Inventory and Needs List, which is included in the appendix section of the Fee Study. A description of the methodology used to calculate the fees is included in Section V.
A Organization of the Fee Study
T
his Fee Study will be presented in the following eight (8) sections:
Section I contains an Executive Summary and provides a brief introduction to the Fee Study and includes an overview of the proposed DIFs.
Section II is an Introduction that includes a brief description of City surroundings and background information on DIF funding.
Section III provides an overview of the legal requir ements for implementing and imposing the DIF amounts identified in the Fee Study and satisfies the nexus requirements for each facility included as part of this Fee Study. Also included is a discussion of the findings and requirements necessary to be satisfied when establishing, increasing, or imposing a fee as a condition of new development.
Section IV includes a discussion of land use charact eristics and demand variables of projected new development such as the number of housing units and the number of non-residential building square feet, assuming current growth trends in residential and non-residential development projected through 2040.
Council Packet - November 17, 2025
2 SECTION I
EXECUTIVE SUMMARY
City of La Verne June 16, 2025
DRAFT Development Impact Fee Justification Study
www.FinanceDTA.com
Section V contains a description of the methodology used to determine the Fees for Future Facilities and presents the fees for each of the land use types.
Section VI presents the calculation of the Fees for each land use.
Section VII presents a summary of the Fees.
Section VIII presents recommendations for the adopti on and administration of the Fees.
This Fee Study also includes an appendix section presenting the calculations and other relevant material used to determine the findings presented in this Fee Study, as noted below:
Appendix A includes the calculations used to determine the various Fee levels; Appendix B includes the Facilities Inventory and Needs List used to determine the various Fee levels; and
Appendix C i ncludes the Inventory List for the purpose of estimating the land acquisition costs.
B D IF Summary
P
er the results of this Fee Study, the total DIF amounts required to finance new development’s share of Future Facilities are identified in Table ES - 1 below. Fees presented in this Fee Study represent the maximum DIFs that may be imposed by the City under the statutory requirements of Government Code Section 66000 et. seq. Notably,
Residential and Non-Residential fees are listed on a per-square-foot basis. Based on the findings in this Fee Study, the proposed DIF levels are presented below in Table ES- 1.
Table ES - 1: Proposed DIF Schedule (Includes 2.0% Administration Cost) Land Use City
Administration Police Fire Parks Storm
Drain
Under -
grounding
Residential (P er Sq. Ft.) $4.67 $0.99 $1.69 $7.43 $0.32 $0.42 Commercial/Retail (P er Sq. Ft.) $3.49 $1.51 $2.56 $0.77 $0.32 Office (P er Sq. Ft.) $5.94 $1.50 $2.56 $0.67 $0.54 Industrial (P er Sq. Ft.) $1.39 $0.43 $0.73 $0.65 $0.13 Institutional/Other (P er Sq. Ft.) $4.48 $1.14 $1.94 $0.67 $0.40 Notes:
1. Residential fees are for single-family residences, multi-family residences, and mobile homes and are per square foot to comply with California AB 602.
2. Non-Residential fees are per 1,000 square feet.
Council Packet - November 17, 2025
3 SECTION I
EXECUTIVE SUMMARY
City of La Verne June 16, 2025
DRAFT Development Impact Fee Justification Study
www.FinanceDTA.com
There is also an Administrative portion of the DIF that funds the City’s costs of implementing and collecting the DIFs, including but not limited to calculation and collection of the fees, revenue and cost accounting of the fees collected, fee justification analysis, and preparation of any mandated reports. The administrative component of the DIF in this Fee Study is calculated at 2% of the total impact fees collected in addition to the fees charged to new development, this is the level recommended in the previous fee study and is considered a customary industry standard.
The cost estimates for facilities used in this Fee Study are in 2025 dollars. Therefore, DTA further recommends that, after adoption, the above Fees be reviewed each year and include a provision for an annual inflationary adjustment based upon the California Construction Cost Index (“CCCI”). This construction cost index is based upon the Building Cost Index (“BCI”) cost indices average as produced by Engineering News-Record (“ENR”).
Council Packet - November 17, 2025
4 SECTION II
INTRODUCTION
City of La Verne June 16, 2025
DRAFT Development Impact Fee Justification Study
www.FinanceDTA.com
INTRODUCTION
Located in the eastern portion of Los Angeles County, approximately 30 miles east of downtown Los Angeles, the City of La Verne (“the City”) covers an area of about 8.5 square miles and is currently home to an estimated population of over 31,000 residents.
Incorporated on August 20, 1906, La Verne is a well-established suburban community with a rich agricultural history and a blend of residential, commercial, and educational uses, including the University of La Verne.
In order to adequately plan for new development and identify the public facilities and costs associated with mitigating the direct and cumulative impacts of new development, DTA was retained by the City to update the existing impact fee program by preparing a new Assembly Bill (“AB”) 1600 fee justification study (the “Fee Study”). The previous fee justification study was completed in 2006 with the current fees based on the findings of that study. The categories of development impact fee (“DIFs” or “Fees”) to be determined by this Fee Study include six fees; Administration, Police, Fire, Parks, Storm Drain, and Undergrounding. The purpose of this Fee Study will be to establish a nexus between the anticipated development and public facilities needs for the City through 2040.
This Fee Study is intended to comply with Section 66000 et seq. of the Government Code,
which was enacted by the State of California in 1987, by identifying additional public facilities required by new development (“Future Facilities”) and determining the level of fees that may be imposed to pay the costs of the Future Facilities. The Future Facilities and associated construction costs are identified in the Facilities Inventory and Needs List, which is included in the appendix section of the Fee Study.
A description of the methodology used to calculate the Fees is included in Section V. The purpose of this Fee Study is to ensure that all new development is required to pay its “fair share” of the cost of new infrastructure through the DIF program. The Fees generated in this Fee Study are one-time fees typically paid prior to the issuance of a building permit and imposed on development projects by local agencies responsible for regulating land use. These Fee amounts to be determined will be at levels identified as being necessary to meet the needs of new development through 2040.
Council Packet - November 17, 2025
5 SECTION II
INTRODUCTION
City of La Verne June 16, 2025
DRAFT Development Impact Fee Justification Study
www.FinanceDTA.com
Fees are calculated to fund the cost of facilities needed to meet the needs of new development. The steps followed in the Fee Study include:
1. Demographic Assumptions : Identify future growth that represents the increased demand for Future Facilities;
2. Facility Needs and Costs: Identify current inventory and planned facilities to determine Level of Service (“LOS”) requirements and determine the Future Facilities required to support new development and the costs of such facilities;
3. Cost Allocation : Allocate costs of Future Facilities on a per-equivalent-dwelling-unit or equivalent-benefit-unit basis; and
4. Fee Schedule : Calculate the Fee amount per square foot for residential development, and the Fee amounts per thousand square feet for non-residential development.
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LEGAL REQUIREMENTS TO JUSTIFY
DEVELOPMENT IMPACT FEES
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LEGAL REQUIREMENTS TO JUSTIFY DEVELOPMENT IMPACT FEES
The City has identified the need to impose DIFs to pay for City Administration, Police, Fire, Parks, Storm Drain, and Undergrounding Fees. The Fees will finance eligible facilities at levels identified by the City as appropriate for new development. Upon the adoption of the Fee Study and required legal documents by the City Council, all new development will be required to pay its “fair share” of the cost of eligible facilities through these Fees. The Fees are established pursuant to AB 1600, as described below.
Prior to World War II, development in California was held responsible for very little of the cost of public infrastructure. Public improvements were financed primarily through jurisdictional General Funds and utility charges. It was not uncommon during this period for speculators to subdivide tracts of land without providing any public improvements, expecting the closest city to eventually annex a project and provide public improvements and services.
However, starting in the late 1940s, the use of DIFs grew with the increased planning and regulation of new development. During the 1960s and 1970s, the California Courts broadened the right of local government to impose fees on developers for public improvements that were not located on project sites. More recently, with the passage of Proposition 13, the limits on general revenues for new infrastructure have resulted in new development being held responsible for a greater share of public improvements, and both the use and levels DIFs have grown substantially. Higher fee levels were undoubtedly driven in part by a need to offset the decline in funds for infrastructure development from other sources.
The imposition of DIFs is one authorized method of financing the public facilities necessary to mitigate the impacts of new development, as it provides funding to maintain an agency's existing level of service for an increased service population. A fee is “a monetary exaction, other than a tax or special assessment, which is charged by a local agency to the applicant in connection with 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...” (California Government Code, Section 66000). A fee may be levied for each type of capital improvement required for new development, with the payment of the fee occurring prior to the beginning of construction of a dwelling unit or non-residential building (or prior to the expansion of existing buildings of these types). Fees are often due at final map recordation, issuance of a Certificate of Occupancy, or more commonly, at building permit issuance.
AB 1600, which created Section 66000
et. seq. of the Government Code, was enacted by the
State of California in 1987. This Fee Study is intended to meet the nexus or benefit requirements of AB 1600, which mandates that there is a nexus between fees imposed, use of the fees, and development projects on which the fees are imposed.
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DEVELOPMENT IMPACT FEES
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A Government Code Section 66001
I
n 2006, Government Code Section 66001 was amended to clarify that a fee cannot include costs attributable to existing deficiencies but can fund costs used to maintain the existing LOS or meet an adopted LOS that is consistent with the General Plan. Section 66000 et seq. of the Government Code requires all public agencies to satisfy the following requirements when establishing, increasing, or imposing a fee as a condition of new development:
1. Identify the purpose of the fee [Government Code Section 66001(a)(1)];
2. Identify the use to which the fee will be put [Government Code Section 66001(a)(2)];
3. Determine that there is a reasonable relationship between the fee’s use and type of development on which the fee is to be imposed [Government Code Section 66001(a)(3)];
4. Determine how there is a reasonable relationship between the need for the public facility and type of development project on which the fee is to be imposed [Government Code Section 66001(a)(4)]; and
5. Discuss how there is a reasonable relationship between the amount of the fee and cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.
The sections below present each of the five requirements listed above as they relate to the imposition of the proposed fees.
A.1 Purpose of the Fee [Government Code Section 66001(A)(1)] New residential and non-residential development within the City will generate additional residents, employees, and visitors, who will require additional public facilities. Land for these facilities will have to be acquired and public facilities and equipment will have to be expanded, constructed, or purchased to meet this increased demand.
This Fee Study has been prepared in response to the projected direct and cumulated effect of future development. Each new development will contribute to the need for new public facilities. Without future development, many of the new public facilities on the Needs Lists would not be necessary as the existing facilities are adequate for the City’s present population. In instances where facilities would be built regardless of new development, the costs of such facilities have been allocated to new and existing development based on their respective level of benefit.
The proposed DIF will be charged to all future development, irrespective of location, in the City. Even future “infill” development projects contribute to impacts on public facilities because they are an interactive component of a much greater network of development located throughout the City. First, the property owners and/or the tenants associated with any new development in the City can be expected to place additional demands on City facilities funded by the fee. Second, these property
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DEVELOPMENT IMPACT FEES
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owners and tenants are dependent on and, in fact, may not have chosen to utilize their development, except for residential, retail, employment, and recreational opportunities located nearby on other existing and future development. Third, the availability of residents, employees, and customers throughout the City has a growth-inducing impact without which some of the “infill” development would not occur. As a result, all development projects in the City contribute to the cumulative impacts of development.
The DIFs will be used for the acquisition, installation, and construction of public facilities identified on the Needs Lists and appropriate administrative costs to mitigate the direct and cumulative impacts of new development in the City.
A.2 The Use to Which the Fee is to be Put [Government Code Section 66001(A)(2)]
The fee will be used for the acquisition, installation, and construction of the public facilities identified on the Needs Lists, included in Section VI of the Fee Study, and other appropriate costs to mitigate the direct and cumulative impacts of new development in the City. The fee will provide a source of revenue to the City to allow for the acquisition, installation, and construction of public facilities, which in turn will maintain the current standard of service, preserve the quality of life in City, and protect the health, safety, and welfare of the existing and future residents, visitors, and employees.
A.3 Determine That There is a Reasonable Relationship Between the Fee’s Use and the Type of Development Project Upon Which t he Fee is Imposed (Benefit Relationship) [Government Code Sect ion 66001(A)(3)] It is the projected direct and cumulative effect of future development that has prompted the preparation of the Fee Study. Each development will contribute to the need for new public facilities. Without future development, the City would have no need to construct many of the public facilities on the Needs Lists. For all other facilities, the costs have been allocated to both existing and new development based on their level of benefit. Even future “infill” development projects, which may be adjacent to existing facilities, further burden existing public facilities. Consequently, all new development within the City, irrespective of location, contributes to the direct and cumulative impacts of development on public facilities and creates the need for new facilities to accommodate growth.
The fees will be expended for the acquisition, installation, and construction of the public facilities identified on the Needs Lists and other authorized uses, as that is the purpose for which the Fee is collected. As previously stated, all new development creates either a direct impact on public facilities or contributes to the cumulative impact on public facilities. Moreover, this impact is generally equalized among all types of development because increased demands for public facilities created by the future residents and employees create impacts upon existing facilities.
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LEGAL REQUIREMENTS TO JUSTIFY
DEVELOPMENT IMPACT FEES
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For the foregoing reasons, new development benefits from the acquisition, construction, and installation of the facilities on the Needs Lists.
A.4 Determine How There is a Reasonable Relationship Between the Need for the Public Facility and the Type of Development Proj ect Upon Which the Fee is Imposed (Impact Relationship) [Government Cod e Section 66001(A)(4)]
As previously stated, all new development within the City, irrespective of location, contributes to the direct and cumulative impacts of development on public facilities and creates the need for new facilities to accommodate growth. Without future development, many of the facilities on the Needs Lists would not be necessary. For certain other facilities, the costs have been allocated to both existing and new development based on their level of benefit.
For the reasons presented herein, there is a reasonable relationship between the need for the public facilities included on the Needs List and all new development within the City.
A.5 The Relationship Between the Amount of the Fee and the Cost of the Public Facilities Attributable to the Development Up on Which the Fee is Imposed (“Rough Proportionality” Relationship) [Gove rnment Code Section 66001(A)]
As set forth above, all new development in the City impacts public facilities.
Moreover, each individual development project and its related increase in population and/or employment, along with the cumulative impacts of all development in the City, will adversely impact existing facilities. Thus, imposition of the Fee to finance the facilities on the Needs Lists is an efficient, practical, and equitable method of permitting development to proceed in a responsible manner.
New development impacts facilities directly and cumulatively. In fact, without any future development, the acquisition, construction, and/or installation of many of the facilities on the Needs Lists would not be necessary as existing City facilities are adequate. Even new development located adjacent to existing facilities will utilize and benefit from facilities on the Needs List.
The proposed fee amounts are roughly proportional to the impacts resulting from new development based on the analysis in Section VI. Thus, there is a reasonable relationship between the amount of the Fee and the cost of the facilities.
Identifying these items will enable a DIF to meet the nexus and rough proportionality requirements established by previous court cases. These findings are discussed in the nexus test for each proposed Fee element as presented in Section VI. Current State financing and fee assessment requirements only allow new development to pay for its fair share of new facilities’ costs. Any current deficiencies resulting from the needs of existing development must be funded through other sources.
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DEVELOPMENT IMPACT FEES
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Therefore, a key element to establish legal DIFs is to determine what share of the benefit or cost of a particular improvement can be equitably assigned to existing development, even if that improvement has not yet been constructed. By removing this factor, the true impact of new development can be assessed, and equitable fees can be assigned.
B Assembly Bill (“AB ”) 602
T
he Fees included herein were circumscribed by the requirements of AB 602, which was approved by the California State Legislature and signed by Governor Newsom in 2021.
Among the significant impacts of AB 602 are the following:
On or after January 1, 2022, fee justification studi es must identify the existing LOS for each public facility, identify the proposed new LOS, and (if the proposed new LOS is greater than existing LOS) include an explanation of why the new LOS is necessary.
For housing development projects, Nexus Studies adop ted after July 1, 2022, must calculate the amount of fees based on the square footage of proposed units of the development, unless the local agency demonstrates that another metric is more appropriate. The bill would require that a “local agency that calculated fees proportionally to the square footage of the proposed units be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by development.” This would also apply to multi-family residences.
The bill also requires the Department of Housing and Community Development (“HCD”), on or before January 1, 2024, to create a Nexus Study template that may be used by local jurisdictions to calculate their fees. The bill requires that the template includes a method of calculating the feasibility of housing being built with a given fee level. The template must be completed by 2024. Local jurisdictions will have the option (it will not be required) to use the HCD template.
The bill authorizes any member of the public, includ ing an applicant for a development project, to submit evidence that the city, county, or other local agency had failed to comply with the Mitigation Fee Act. The bill requires the legislative body of the city, county, or other local agency to consider any timely submitted evidence and authorize the legislative body to change or adjust the proposed fee or fee increase, as specified.
If a Nexus Study supports the increase of an existin g fee, the local agency shall review the assumption of the Nexus Study supporting the original fee and evaluate the amount of the fees collected under the original fee.
Large jurisdictions (county population greater than 250,000) and cities within those counties must adopt a Capital Improvement Plan (“CIP”) as part of the Nexus Study.
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LEGAL REQUIREMENTS TO JUSTIFY
DEVELOPMENT IMPACT FEES
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Nexus Studies shall be updated at least every 8 year s from the period beginning January 1, 2023.
Importantly, AB 602 does not apply to (i) water and sewer connection and capacity charges, (ii) school fees, and (iii) Mello-Roos or other taxes. These other fees, taxes, and charges are subject to their own statutory accountability measures.
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DEMOGRAPHICS
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DEMOGRAPHICS
To determine the facilities needed to serve new development and establish fee amounts to fund such facilities, DTA has researched and reviewed material containing information of future land use development within the City through 2040. For the purpose of this Fee Study, DTA assumed one category for all residential land uses (e.g., single-family, multi- family and mobile homes residences). For developable non-residential land uses within the City, DTA categorized these as commercial/retail, office, industrial, and institutional/other, as summarized in detail in the following section.
Elements from a number of sources including the City’s General Plan (the “General Plan”) adopted January 2025; demographics numbers from the California Department of Finance and US Census; and total square footage generated by the CoStar Real Estate Software Platform (“CoStar”); were used as estimates for the number of housing units and non- residential building square feet to be built within the City. California law requires that a General Plan “cover the territory within the boundaries of an adopted City, as well as any land outside its boundaries which in the planning agencies judgement bears relation to its planning.”
In addition, information from the General Plan and estimates produced by DTA were used to project the additional land uses resulting from new developments. Notably, DTA attempted to utilize metrics (e.g., average household size, square footage, etc.) that standardized existing demographics with the projections found in the General Plan. Future residents and employees will create additional demand for facilities that existing public facilities cannot adequately service. In order to accommodate new development in an orderly manner, while maintaining the current quality of life in the City, the facilities on the Inventory and Facility Needs List (presented throughout Section VI and in the Appendix), as reviewed and approved by the City staff, will need to be constructed.
For those facilities that are needed to mitigate demand from new development, facility costs have been allocated to new development only. In those instances when it has been determined that the new facilities will serve both existing and new development, facility costs have been allocated based on proportionate benefit [see the Equivalent Dwelling Unit (“EDU”) and Equivalent Benefit Unit (“EBU”) discussion in Section V].
Table 1
presented below provides a summary of the land uses covered in this Fee Study. As previously indicated, the Fee Study will determine Fees for five (5) specific land use categories; residential, commercial/retail, office, industrial, and institutional/other. Notably, the table shown below is meant to provide an example of typical land uses found in each category and is not intended to be a comprehensive list of all the City’s potential land uses.
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Table 1: Summary of Land Use Categories
Land Use Classification Fee
Study Definition
Residential
Includes single-family detached homes and single-family attached homes. Also includes buildings with attached residential units including apartments, town homes, condominiums, mobile homes, and all other residential units not classified as single-family. For the purposes of determining the Fees due, any "second unit" or "accessory dwelling unit" (as determined pursuant to Section 65852.2 of the Government Code) shall be considered a separate residential unit and shall be subject to this fee.
Commercial/Retail
Includes but is not limited to buildings used as the following:
Retail;
Service-oriented business activities, wineries/viney ards, and car washes; Department stores, discount stores, furniture/applia nce outlets, home improvement centers;
Shopping centers and entertainment centers
Subregional and regional shopping centers;
Grocery stores and storage facilities.
Hotels, motel, spas, and resorts
Office
Includes but is not limited to buildings used as the following:
Business/professional offices;
Medical/dental offices;
Office park, research park, business park; and
General office buildings.
Industrial
Includes but is not limited to buildings used as the following:
Light manufacturing, warehouse/distribution, and log istics wholesaling; Wholesale and warehouse retail;
Food processing;
Industrial park; and
Industrial/light industrial.
Institutional/Other
Include but is not limited to buildings used as the following:
Professional urgent care and private hospitals and r ehabilitation centers; Private schools, trade and vocational schools, and v eteran organizations; Rehabilitation centers, assisted living, and memory care facilities; and Churches, temples, mosques, and synagogues.
A Existing Residential Land Use s
D
emographic data provided by the California Department of Finance and the 2025 General Plan, were used to estimate the existing number of housing units and population in the City.
Notably, DTA attempted to utilize metrics (e.g., average household size, square footage, etc.) that standardized existing demographics with DTA’s projections.
According to the information provided by the California Department of Finance, there are currently 32,300 existing residents residing in 12,431 residential single-family, multi-family,
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DEMOGRAPHICS
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and mobile home housing units in the City. The residential persons-per-unit figure of 2.60 was also derived from 2025 data published by the California Department of Finance. Table 2 presented below summarizes the existing demographics for the City’s residential land uses.
Table 2: Estimated Existing Residential Development
Residential Land Use Existing
Residents Existing Housing Units Residents per
Unit
Residential 32,300 12,431 2.60
Total 32,300 12,431 2.60
B Existing Non - Residential Land Use s
T
he existing non-residential square footage was compiled and estimated using the CoStar Real Estate Software Platform. In addition, the employees per square foot for non- residential land uses was based on information published in Nielsen Company Employment
Profiles by NAICS Codes 2024. The North American Industry Classification System (“NAICS”) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. The number of non-residential building square footage presented below in Table 3
is considered “existing non-residential development”.
A
s reflected in Table 3 below , the City has approximately 6,746,692 total square feet of existing non-residential development; including approximately 2,298,776 square feet of commercial/retail development, 269,000 square feet of office development, 3,478,385 square feet of industrial development, and 700,531 square feet of institutional/other development.
Per the Nielsen Company’s
Employment Profiles (2024), the City has 11,459 employees in these non-residential sectors, specifically 5,227 commercial / retail employees, 1,041 office employees, 3,147 industrial employees, and 2,044 institutional/other employees. These numbers were based on existing employee data and existing square footage data, generating employees-per-thousand-square-foot factors (“EPSFs”) of 2.27 for commercial/retail, 3.87 for office, 0.90 for industrial, and 2.92 for institutional/other.
These EPSF numbers are presented in detail in Appendix A .
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DEMOGRAPHICS
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Table 3: Estimated Existing Non - Residential Development Non - Residential Land Use Existing
Employees
Existing Building
Square Feet
Employees per
Square Foot
Commercial/Retail 5,227 2,298,776 2.27
Office 1,041 269,000 3.87
Industrial 3,147 3,478,385 0.90
Institutional/Other 2,044 700,531 2.92
Total 11,459 6,746,692 NA
C Future Residential Land Uses (2040)
L
and use projections taken from the 2025 General Plan through 2040 show that the City anticipates approximately 14,354 residential units at buildout, which (based on the number of existing residential units of 12,431, translates to an average annual growth rate of 0.96%.
As indicated in Table 4,
given the assumed projected growth rates, DTA determined that the City is expected to grow by 1,923 residential units, which (assuming the same average person-per-household) would translate to an additional 4,997 residents, by the end of the 2040 build-out period.
Table 4: Projected Residential Development over Build- O ut Period 1 Residential Land Use Future
Residents Future Housing Units Residents per Unit
Residential 4,997 1,923 2.60
Total 4,997 1,923 2.60
Notes:
1. Numbers may not sum due to rounding.
2. Residents per units is expected to remain the same over the build-out period.
To comply with AB 602, DTA worked with the City staff to determine the average square footage for both single-family and multi-family residences. Using building permit information from 2020 to 2023, DTA calculated that the combined average residential square foot unit was 1,706 square feet across single-family and multi-family residences.
Based on the total anticipated future residential development of 1,923, this results in a total of 3,280,638 sq. ft. of future residential development, as shown in the table below.
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DEMOGRAPHICS
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Table 5: Future Residential Development Sq. Ft.1
Category Total
Total Residential Units 1,923
Average Sq. Ft. per Unit 1,706
Total Residential Sq. Ft. 3,280,638
Note:
1. Multiplicands are rounded in the table.
D Future Non - Residential Land Uses (2040 )
L
and use projections taken from the 2025 General Plan through 2040 show that the City anticipates approximately 7,540,413 square feet of non-residential at buildout, which (based on the number of existing non-residential square feet of 6,746,692, translates to an average annual growth rate of 0.74% or the development of approximately 793,721 square feet of non-residential development over the build-out period. This is presented below for each of the non-residential land use categories.
Table 6: Future Projected Non - Residential Development over Build- O ut Period Non - Residential Land Use Future
Employees
Projected
Building
Square Feet
Employees per
Square Foot
Commercial/Retail 615 270,442 2.27
Office 122 31,647 3.87
Industrial 370 409,218 0.90
Institutional/Other 240 82,415 2.92
Total 1,348 793,721 NA
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METHODOLOGY USED TO
CALCULATE FEES
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METHODOLOGY USED TO CALCULAT E FEES
There are several accepted methodologies used in calculating fees, but they are all based on determining the cost of needed improvements and assigning those costs equitably to various types of development. In determining a reasonable nexus for each specific type of public facility, DTA utilized the methodologies described below, depending upon the data and information available from the City and its current infrastructure policies.
A Standards - Based Fee Methodology
T
he methodology used to establish the DIFs outlined in this Study for City Administration, Police, Fire, and Parks is based on “standards,” where costs are based on existing LOS. This Standards-Based Methodology establishes a generic unit cost for capacity which is then applied to each land use per the existing LOS. The LOS is based on the existing number of applicable units, such as square feet of building space or acres of land or per resident for each facility. This standard is not based on cost but rather on a standard of service. The Standards-Based Methodology ensures that City facilities are appropriately developed and sized so that future residents and employees do not cause a reduced LOS by unduly burdening the infrastructure system, thus leading to decay and deterioration. This methodology provides several advantages, including not needing to know the cost of a specific facility, how much capacity or service is provided by the current system, or having to commit to a specific size of the facility.
B Plan - Based Fee Methodology
T
he methodology used to establish the DIFs outlined in this Study for Storm Drain and Undergrounding is based on a “plan,” such as a Master Plan of Facilities, Capital Improvement Plan, or General Plan, which identifies a finite set of improvements to be implemented. These Facility Plans generally identify a finite set of facilities needed by the public agency and are developed according to assessments of facilities needs prepared by staff and/or outside consultants and adopted by the public agency’s legislative body. Using this plan-based approach, specific costs can be projected and assigned to all land uses planned, often with a specific time period in mind that reflects new development projections. By using population, units, and residential and non-residential square footage numbers, it is possible to assign a cost allocation percentage for both new and existing development. In preparing an impact fee analysis, facilities costs attributed to future development can then be allocated to each land use class in proportion to the demand caused by each type of development.
C Capacity- Based Fee Methodology
A
nother method of fee assessment used is based on the “capacity” of a service or system, such as a water tank, a sewer plant, or a storm drain. This kind of fee is not dependent on a particular land use plan (i.e., amount or intensity) but rather it is based on a rate or cost per unit of capacity that can be applied to any type of development, as long as the system has adequate capacity. This fee is useful when the costs of the facility or system are unknown at the outset. However, it requires that the capacity used by a particular land use
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METHODOLOGY USED TO
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type be measurable or estimable and the information to be available. Capacity-based Fees are assessed based on the demand rate per unit. Although this methodology is not used to calculate any of the fees generated in this Study, the description is provided so that the City understands the various methodologies available for calculating fees.
D Summary of Fee Methodology
I
n this Fee Study, the Standards-based LOS methodology is used to generate fees for City Administration, Police, Fire, and Park, and a Plan-based methodology is used to generate the fees for Storm Drain and Undergrounding. This is summarized in Table 7 below.
Table 7 : Fee Methodology (by Fee Category Type)
Fee Category Methodology Basis of Methodology
City Administration Standards-Based fee Existing Standard Police Standards-Based fee Existing Standard
Fire Standards-Based fee Existing Standard
Parks Standards-Based fee Existing Standard
Storm Drain Plan-Based Fee Needs List
Undergrounding Plan-Based Fee Needs List
For Fee calculations using the Plan-Based approach, the City has provided DTA with the list of Future Facilities to be included in the Fee Study (the “Needs List”). For the purposes of the City’s DIF program, the Needs List is intended to be the official public document identifying the facilities eligible to be financed, in whole or in part, through the imposition of a DIF on new development within the City. The Needs List is organized by facility element (or type) and includes cost information, as outlined in Table 8 b elow.
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Table 8: Description of Needs List Cost Sections
Column Title Contents Source
Total Cost for Facility The total estimated facility cost, including engineering, design, construction, land acquisition, and equipment (as applicable). City Offsetting Revenues to
New and Existing
Development
Share of total offsetting revenues allocated to new and existing development. City
Net Cost to City The difference between the total cost and the offsetting revenues. Calculated by DTA Percent of Cost
Allocated to New
Development
Net cost allocated to new development based on new
development’s share of facilities.
Calculated by DTA
and the City
Net Cost Allocated to
New Development
The net cost to the City multiplied by the percentage cost allocated to new development. Calculated by DTA
Policy Background or
Objective Identifies the policy source or rationale for facility need. City General Plan, CIP, City Staff
The facilities included on the Needs List for each Fee (presented in Appendix B ) are provided by the City and reflect either the City’s goals of maintaining and improving a specific area, or they are part of a more formal policy document, such as a General Plan, Master Plan, Capital Improvement Plan, or other official policy or document etc. Specific estimated facility costs are provided by the City and used as a basis for determining the allocation of revenues between new and existing development. DTA surveyed City staff and comparable development on the required facilities needed to serve new development as a starting point for its fee calculations.
E Allocation of Benefit
E.1 E quivalent D w elling U nits (“EDUs ”) and E quivalent Benefit U nits (“EBUs ”) The methodologies employed in this Fee Study use EDUs and EBUs as the method of identifying and quantifying benefits of certain facilities and ensuring that an equitable portion of the total facilities costs are allocated to future growth, based on the proportion of need generated by that growth. Specifically, EDUs are generated in the demographic portion of this Fee Study and are used to generate the land use calculations. EDUs are a means of quantifying different land uses in terms of their equivalence to a residential dwelling unit, where equivalence is measured in terms of potential infrastructure use or benefit for each type of public facility. In this Study, EDUs are used as a basis of allocation for City Administration, Police, Fire, and Parks.
In contrast, for Storm Drain and Undergrounding, EBUs are used to allocate costs to future growth and generate fees.
E.2 Persons Served
For many of the facilities considered in this Fee Study, service population (or Persons
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Served) will be used to allocate benefits among fee categories. For the purposes of this Fee Study, the Persons Served calculations are based on the number of residents per dwelling unit (i.e., persons per household) and number of employees per 1,000 Sq. Ft. generated by each land use class. Notably, the Persons Served (or service population) is determined for City Administration, Police, Fire, and Parks based on the following:
For public safety (i.e., Police and Fire), the calcu lation of the number of Persons Served (or service population), is based on residents, plus 50% of employees, plus 5% of visitors (where visitors to non-residential land uses are estimated based on the trip generation rate associated with that land use).
Notably, this service population estimate accounts for the fact that generally, residents require services for 16 hours per day, employees/business require services for 8 hours per day, and visitors (e.g., shoppers at a retail site) require services for approximately 30-60 minutes while on site. As a result, this estimate of services population would best approximate the need for service (e.g., responding to emergencies) by each land use, and therefore the need for Future Facilities by such land use.
For City Administration and Undergrounding, the calc ulation of the number of Persons Served is based on residents, plus 50% of employees. Similar to public safety, this service population estimate accounts for the fact that generally, residents would have access to facilities for 16 hours per day and employees have access to facilities for 8 hours per day. However, in contrast to public safety, DTA assumes that the impact of visitors to non-residential land uses for City Administration and Undergrounding facilities is negligible.
Finally, for Parks, the calculation of the number of Persons Served is based on residents only.
Table 9: Basis of Allocation (by Fee Category Type)
Fee Category Basis of Allocation
of (EDU, EBU) Factor
City Administration Persons Served
(Residents, Employees)
Police Persons Served
(Residents, Employees, Visitors)
Fire Persons Served
(Residents, Employees, Visitors)
Park Persons Served
(Residents)
Storm Drain Runoff Coefficient
(Storm Drain Runoff)
Undergrounding Persons Served
(Residents, Employees)
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E.1 Stormwater Runoff Coefficients
The methodology used to allocate drainage costs to future development is relative runoff contribution. The Rational Method for computing runoff rates was used in the form of Q = C x I x A where “Q” is equal to runoff volume, “C” is the ratio of impervious area to total area studied, “I” is rainfall intensity, and “A” is Area, in acres of the City. A runoff factor, “C” of 1.00, indicates a totally impervious site, where every drop of rain would find its way to the public streets as run-off. Only the relative contribution of runoff between land uses needs to be considered. Thus, the “unit runoff”, or runoff per storm intensity (Q/I) can be computed using only the runoff factor and acreage data. To estimate the acreage for purposes of applying the Drainage runoff factors, runoff coefficient factors from the 2020 Caltrans Highway Design Manual Hydrology chapter were used.
Table 10 : Allocation Methodology
Facility Type EBU/EDU EBU/EDU Existing Projected Total City Administration
Persons Served
(Residents,
Employees)
EDU 14,636 2,182 16,818
Police Persons Served
(Residents,
Employees,
Visitors)
EDU 16,066 2,351 85,416
Fire
Parks Persons Served
(Residents) EDU 12,431 1,923 14,354
Storm Drain Runoff
Coefficient EBU 650 91 741
Undergrounding
Persons Served
(Residents,
Employees)
EDU 14,636 2,182 16,818
The following sections present the reasonable relationship of benefit, impact, and proportionality tests for each fee element (i.e., City Administration, Police, Fire, Parks, Storm Drain, and Undergrounding, as well as the analysis undertaken to apportion costs for each type of facility. More detailed fee calculation worksheets for each type of facility are included in Appendix A .
F Calculation of Land Costs
T
o determine the fair and accurate land acquisition costs used in the calculations presented in the following sections, DTA utilized the CoStar Real Estate Software Platform and created a comparable land inventory of 10 undeveloped properties ranging from 0.32 acres to 22.22 acres in the City. Each of the properties in the inventory were sold between 2008 and 2023, and an average of their sales price was generated. Of note, it was determined that sales price was a more accurate measure of land value than current land asking price. The land inventory produced totaled 10 properties, meeting the proper criteria.
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Based on this inventory, DTA used an average of $1,009,832 per acre as an estimated cost of land acquisition.
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CALCULATION OF FEES
A City Administration DIFs
A.1 City Administration (Nexus Requirement AB 1600)
The City Administration element includes the facilities necessary to provide basic governmental services and public facilities maintenance services, exclusive of public safety, throughout the City. Notably, all furniture, fixtures, and equipment have been consolidated into an integrated unit that includes all department equipment, such as furniture modules, computer hardware and other equipment, to simplify the representation of the data. The proposed DIF discussed in this section, if adopted, would be imposed, collected, and spent on the acquisition of land, construction of new public buildings, and expansion of existing City facilities to accommodate new growth.
Table 11
below illustrates how the City Administration Fee will meet the requirements of AB 1600 with regard to use of the fee, type of development funded or partially funded by the fee revenue, reasonable relationship to the need for facilities, and proportionality requirements.
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Table 11: City Administration Element
AB 1600 Code
Section Description Justification
66001(a)(1) Identify the purpose of the Fee.
Provide a revenue source that will provide funds to
construct or enhance City administration facilities that will mitigate the impacts of new residential and non-
residential development to the City.
66001(a)(2) Identify the use to which the Fee
is to be put.
Construction and replacement of city hall buildings,
supporting administration buildings, public works
office, garage facilities, vehicles, equipment and
parking facilities.
66001(a)(3)
Demonstrate how there is a
reasonable relationship between
the Fee’s use and type of
development project on which
the Fee is imposed.
New residential and non-residential development in
the City will generate additional residents and
employees, thus increasing the need for City
Administration facilities and services. The equipment, vehicles, buildings, and parking facilities used to
provide these services will have to be enhanced,
expanded, constructed, or purchased to meet this
increased demand and maintain the current level of
service to the City.
66001(a)(4)
Demonstrate how there is a
reasonable relationship between
the need for the public facilities
and type of development project
on which the Fee is imposed.
The additional residents and employees from the new
development will impact demand for general
administration facilities. Expanded or enhanced city
hall buildings, supporting government administration
facilities, public works office, garage facilities,
vehicles, equipment, and parking facilities are needed
to mitigate the impacts of the additional residents and employees. If City Administration facilities are not
constructed, expanded, or enhanced, then overall
general services provided to the residents and
employees in the City will suffer.
66001(b)
Demonstrate how there is a
reasonable relationship between
the amount of the Fee and cost of
the public facility.
The City Administration fee is based on the cost to
provide expanded or enhanced city hall buildings,
supporting government administration facilities,
public works office, garage facilities, equipment,
vehicles, field operations buildings, and parking
facilities. The fee is based on the cost to provide new materials at the same levels as provided to existing
residents and employees.
Table 12 below identifies the current inventory for City’s Administration facilities. As noted previously, all furniture, fixtures, and equipment have been consolidated into one (1) integrated unit that includes all department equipment, such as furniture modules and other equipment, to simplify the representation of the data.
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Table 12: City Administration Inventory as of 2025
Facility Quantity
Buildings (Square Feet) 138,277
Land (Acres) 3.17
Vehicles (Number of Vehicles) 5.0
Furniture, Fixtures, and Equipment (Integrated Unit) 1.0 A.2 Calculation Methodology
The City Administration Fee was calculated using the Standards-Based Methodology discussed in Section V. For future development to receive the same LOS as exists today, the City will need to acquire or construct additional public building facilities, vehicles, and equipment. Assuming the City’s growth through 2040, the City will need to acquire or construct additional infrastructure in order to continue to maintain the existing LOS.
A.3 Level of Service
As stated earlier in Section III, in September of 2021 the Governor of California signed AB 602 which provides new statewide requirements for local jurisdictions seeking to impose DIFs on development projects. Among these new requirements is that when applicable, a nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is necessary. The level of service used to calculate the City Administration Fees in this section is the existing level of service as defined as the relationship between the replacement cost of City Administration facilities (as described in this section) and the City’s existing EDUs as discussed in Section V. The current LOS is calculated by dividing the total inventory of a facility type, as noted above, by the existing number of EDUs within the City. As indicated below, the existing level of service for every 1,000 EDUs is 9,448 square feet of building space.
The same LOS methodology applies to land, vehicles and integrated equipment and is presented below in Table 13.
Table 13: City Administration Current LOS as of 2025
Facility Type Facility Units per
1,000 EDUs
Buildings (Square Feet) 9,448
Land (Acres) 0.217
Vehicles (Number of Vehicles) 0.342
Furniture, Fixtures, and Equipment (Integrated Unit) 0.068
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The facility units generated in the table above are used to determine future City Administration buildings, land, vehicles, etc., funded by new development in 2040 and are presented below in Table 14.
The mathematics behind these calculations
are presented in detail in Appendix A .
Table 14: Future City Administration Facility Units in 2040 Facility Type
Number of Facility
Units Funded by
New Development
Buildings (Square Feet) 20,619
Land (Acres) 0.473
Vehicles (Number of Vehicles) 0.746
Furniture, Fixtures, and Equipment (Integrated Unit) 0.149 Notably, it’s important to note that construction costs and acquisition costs are dependent on the real estate market at the time of development. Location, demand for land, encumbrances, comparable acquisitions, and construction costs are a few of the many variables that play into appraisals and negotiations. Each facility will have its own location and improvement requirements. However, DTA was able to determine general cost estimates, on a per square foot basis, for City Administration facilities, based on historical and current data available and input from the City.
These cost estimates were then applied to the future facility units.
Table 15: City Administration Total Costs in 2040 1
Facility Type
Facility Units
Funded by New
Development
Cost Per Unit
Total Facility
Cost for Future
Development
Buildings (Square Feet) 20,619 $675 $13,917,676
Land (Acres) 0.473 $1,009,832 $477,996
Vehicles (Number) 0.746 $62,027 $46,245
Equipment (Integrated Unit) 0.149 $17,552,356 $2,617,272 Less: Offsetting Revenue $0
Equals: Total Facilities Cost $17,059,189
Total Future EDUs 2,182
Cost per ED U $7,817
Note:
1. Numbers may not sum due to rounding.
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A.4 Offsetting Revenues
In calculating DIFs, it is important to consider any offsetting revenue in the City Administration facilities calculation total, as any existing account balance or other offsetting funds must be subtracted from the facilities cost total. As this is a new fee to the City, there are no current offsetting revenues.
A.5 City Administration Fee Calculations
Once the total future facility cost has been determined, the maximum calculated fee for each land use category can be generated. This is done by dividing the total future facility cost by the projected City Administration EDUs to generate a per EDU rate, which equals $7,817 per EDU as shown above. As discussed in Section III, per the directive of AB 602, for housing development projects, nexus studies adopted after July 1, 2022, will no longer be on a per unit basis, but will be calculated based on
square footage of proposed units of the development, unless the local agency demonstrates that another metric is more appropriate.
The Residential Fee per Sq. Ft. was determined by first multiplying the cost per EDU of $7,817 by the total number of residential EDUs (1,923), resulting in the total amount funded from residential property of $15,031,422. This result was then divided by the total anticipated residential square feet of 3,280,638 to generate the Fee per square foot of $4.58. Details of this calculation are shown in the table below.
Table 16: Residential City Administration Costs Financed by Fees Summary per Land Use Category 1
Land Use Type EDUs per Unit Number of
Projected Units Calculation Total EDUs
Residential 1.00 1,923 1,923
Total EDUs [a] 1,923
Total Cost per EDU [b] $7,817
Total Fees [c] = [a] x [b] $15,031,422
Total Residential Sq. Ft. [d] 3,280,638
Total Cost per Residential Sq. Ft. [e] = [c]/[d] $4.58
Note:
1. Numbers may not sum due to rounding.
Similarly, the Non-residential Fee per 1,000 Sq. Ft. was determined by multiplying the cost per EDU of $7,817 by the total number of non-residential EDUs applicable with each land use type. The table below summarizes the fee amounts per 1,000 Sq. Ft. and the total cost financed by Fees imposed on non-residential land uses.
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Table 17 : Non - Residential City Administration Costs Financed by Fee Summary per Land Use Category 1
Land Use Type EDUs per 1,000
Non - Res. Sq. Ft.1
Fee per 1,000 Non -
Res. Sq. Ft.
Number of
Projected
Non - Res. Sq. Ft.
Costs Financed by
Fees
[a] [b] = [a] x [$ per EDU] [c] [d] = [c] x [b]
Commercial/Retail 0.44 $3,420 270,442 $924,962
Office 0.74 $5,821 31,647 $184,214
Industrial 0.17 $1,361 409,218 $556,888
Institutional/Other 0.56 $4,389 82,415 $361,703
Total $2,027,767
Note:
1. Numbers may not sum due to rounding.
A.6 Proposed fees
A summary of the proposed City Administration Fees is presented in Table 18 below.
The Fees recommended within this Fee Study reflect the maximum justifiable Fee level that may be imposed on new residential and non-residential development by the City under the statutory requirements of Government Code Section 66000 et.
seq.
Table 18: City Administration Costs Financed by Fees Summary per Land Use Category Land Use Type
Residential Fee
per Sq. Ft./per
1,000 Non - Res.
Sq. Ft.
Number of
Projected Res Sq.
Ft., and Non - Res.
Sq. Ft
Costs Financed by Fees
Residential $4.58 3,280,638 $15,031,422
Commercial $3,420 270,442 $924,962
Office $5,821 31,647 $184,214
Industrial $1,361 409,218 $556,888
Institutional/Other $4,389 82,415 $361,703
Total $17,059,189
A.7 Administrative Fee
There is also an Administrative portion of the DIF which is an administrative fee that funds the City’s costs of implementing and collecting the DIFs, including but not limited to calculation and collection of the fees, revenue and cost accounting of the fees collected, fee justification analysis, and preparation of any mandated reports. Per the City’s request, the administrative component of the DIF is calculated at 2% of the
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total impact fees collected in addition to the fees charged to new development, which is a customary industry standard. The calculated DIFs including the 2% administrative fee are presented in Table 19
below.
Table 19: City Administration Fee Summary (Includes 2.0% Administration Cost) Land Use Maximum
Fees
Residential (Per Sq. Ft.) $4.67
Commercial/Retail (Per Sq. Ft.) $3.49
Office (Per Sq. Ft.) $5.94
Industrial (Per Sq. Ft.) $1.39
Institutional/Other (Per Sq. Ft.) $4.48
A.8 DIF Annual Cost Escalation Recommendations
The fees recommended within this Fee Study reflect the maximum justifiable fee level that may be imposed on new development under the statutory requirements of Government Code Section 66000
et. seq. As the DIFs proposed in this Fee Study
are based on Facilities costs in 2025 dollars, it is appropriate for the City to apply an annual escalator to these fee levels to account for inflation in acquisition and construction costs. DTA further recommends that, after adoption, the above Fees be reviewed each year and include a provision for an annual adjustment based on the current CCCI. This construction cost index is based upon the BCI cost indices as produced by ENR.
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B Police DIFs
B.1 Police Facilities (Nexus Requirement AB 1600)
The Police Facilities element includes those facilities used by the City Police Department to maintain police services. The fees collected from the new development will be used exclusively for Police Department purposes. All new development within the City contributes to the direct and cumulative impacts of development on Police Department facilities and creates the need for new facilities to accommodate growth. The facilities, equipment, and vehicles used to provide these services will have to be purchased or replaced to meet this increased demand.
Thus, a reasonable relationship exists between the need for Police Facilities and impact of residential and non-residential development.
Table 20 b
elow illustrates how the police fee will meet the requirements of AB 1600 with regard to use of the fee, type of development funded or partially funded by the fee revenue, reasonable relationship to the need for facilities, and proportionality requirements.
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Table 20 : Police Facilities Element
AB 1600 Code
Section Description Justification
66001(a)(1) Identify the purpose of the Fee.
Provide a revenue source that will provide funds to
acquire vehicles, property and equipment, and
additional facilities that will mitigate the impacts of new residential and non-residential development to
the City’s Police facilities.
66001(a)(2) Identify the use to which the Fee
is to be put.
Expansion or enhancement of police headquarters or
substations, purchase of additional police vehicles,
property, and equipment.
66001(a)(3)
Demonstrate how there is a
reasonable relationship between
the Fee’s use and type of
development project on which
the Fee is imposed.
New residential and non-residential development in
the City will generate additional residents and
employees in the City, thus increasing the need for
trained police personnel. Buildings, vehicles,
property, and equipment used to provide these
services will have to be purchased or enhanced to
meet this increased demand and maintain the same
level of service to the City.
66001(a)(4)
Demonstrate how there is a
reasonable relationship between
the need for the public facilities
and type of development project
on which the Fee is imposed.
The additional residents and employees from new
development will impact the demand for police
vehicles, property, and equipment. Expanded or
enhanced police stations, vehicles, and equipment
would be needed to mitigate the impacts of the
additional residents and employees. If additional
buildings, vehicles and equipment are not acquired,
then overall public safety level of service in the City would suffer.
66001(b)
Demonstrate how there is a
reasonable relationship between
the amount of the Fee and cost
of the public facility.
The police fee is based on the cost to provide
expand/enhance buildings, and purchase additional
vehicles, property, and equipment, at the same levels
as provided to existing residents.
The table below identifies the current inventory for Police facilities. Notably, all furniture, fixtures, and equipment have been consolidated into one integrated unit that includes all department equipment, such as furniture modules and other equipment, to simplify the representation of the data.
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Table 21: Police Facilities Inventory as of 2025
Facility Quantity
Buildings (Square Feet) 11,150
Land (Acres) 1.13
Vehicles (Number of Vehicles) 45.0
Furniture, Fixtures, and Equipment (One Integrated Unit) 1.0 B.2 Calculation Methodology
The Police Fee was calculated using the Standards-Based Methodology discussed in Section V. For future development to receive the same LOS as exists today, the City will need to acquire or construct additional Police facilities and purchase new vehicles and equipment. Assuming the City’s growth generally over the next 16 years, the City will need to acquire or construct additional infrastructure in order to continue to maintain the existing LOS.
B.3 Level of Service
As stated earlier in Section III, in September of 2021 the Governor of California signed AB 602 which provides new statewide requirements for local jurisdictions seeking to impose DIFs on development projects. Among these new requirements is that when applicable, a nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is necessary. The level of service used to calculate the Police Fee in this section is the existing level of service as defined as the relationship between the replacement cost of Police Facilities (as described in this section) and the City’s existing EDUs as discussed in Section V. The current LOS is calculated by dividing the total inventory of a facility type, as noted above, by the existing number of EDUs within the City. As indicated below, the existing level of service for every 1,000 EDUs is 694 square feet of building space. The same LOS methodology applies to land, vehicles, and integrated equipment and is presented below in Table 22.
Table 22: Police Facilities Current LOS as of 2025
Facility Type Facility Units per
1,000 EDUs
Buildings (Square Feet) 694
Land (Acres) 0.070
Vehicles (Number of Vehicles) 2.801
Furniture, Fixtures, and Equipment (Integrated Unit) 0.062 The facility units generated in the table above are used to determine future Police Facility Units (buildings, land, vehicles, and equipment) funded by new development
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by 2040. This is presented below in Table 23. The mathematics behind these calculations are presented in detail in Appendix A .
Table 23: Police Future Facilities Required to Maintain the Current LOS by 204 0 Facility Type
Number of Facility
Units Funded by
New Development
Buildings (Square Feet) 1,631
Land (Acres) 0.165
Vehicles (Number of Vehicles) 6.584
Furniture, Fixtures, and Equipment (Integrated Unit) 0.146 Notably, it’s important to note that construction and acquisition costs are dependent on the real estate market at the time of development. Location, demand for land, encumbrances, comparable acquisitions, and construction costs are a few of the many variables that play into appraisals and negotiations. Each facility will have its own location and improvement requirements. However, DTA determined general cost estimates, on a per square foot basis, for Police facilities, based on historical and current data available. It’s also important to note that building costs for public safety facilities are somewhat higher than conventional structures as they must be built to a higher standard and assume a higher level of use (24-hour use). These cost estimates were then applied to the future facility units. Please see Table 24 below
for additional detail regarding the costs for Police facilities.
Table 24: Police Total Facilities Costs in 2040 1
Facility Type
Facility Units
Funded by New
Development
Cost Per
Unit
Total Facility Cost
for Future
Development
Buildings (Square Feet) 1,631 $1,170 $1,908,456
Land (Acres) 0.165 $1,009,832 $166,959
Vehicles (Number) 6.584 $94,762 $623,917
Equipment (Integrated Unit) 0.146 $8,248,279 $1,206,826 Less: Offsetting Revenue $0
Equals: Total Facilities Cost $3,906,157
Total Future EDUs 2,351
Cost per EDU $1,662
Note:
1. Numbers may not sum due to rounding.
B.4 Offsetting Revenues
In calculating Development Impact Fees, it is important to consider any offsetting revenue in the Police Facilities calculation total, as any existing account balance or
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other offsetting funds must be subtracted from the facilities cost total. As this is a new fee to the City, there are no current offsetting revenues.
B.5 Police Facilities Fee Calculation
Once the total future facility cost has been determined, the maximum calculated fee for each land use category can be generated. This is done by dividing the total future facility cost by the projected Police Facilities EDUs to generate a per EDU rate, which equals $1,662 per EDU as shown above. As discussed in Section II, per the directive of AB 602, for housing development projects, nexus studies adopted after July 1, 2022, will no longer be on a per unit basis, but will be calculated based on the square footage of proposed units of the development, unless the local agency demonstrates that another metric is more appropriate.
Again, the Residential Fee per Sq. Ft. was determined by first multiplying the cost per EDU of $1,662 by the total number of residential EDUs (1,923), resulting in the total amount funded from residential property of $3,195,595. This result was then divided by the total anticipated residential 3,280,638 square feet to generate the Fee per square foot of $0.97. Details of this calculation are shown in the table below.
Table 25: Residential Police Facilities Costs Financed by Fees Summary per Land Use Category 1 Land Use Type EDUs per Unit Number of
Projected Units Calculation Total EDUs
Residential 1.00 1,923 1,923
Total EDUs [a] 1,923
Total Cost per EDU [b] $1,662
Total Fees [c] = [a] x [b] $3,195,595
Total Residential Sq. Ft. [d] 3,280,638
Total Cost per Residential Sq. Ft. [e] = [c]/[d] $0.97
Note:
1. Numbers may not sum due to rounding.
Similarly, the non-residential Fee per 1,000 Sq. Ft. was determined by multiplying the cost per EDU of $1,662 by the total number of non-residential EDUs applicable with each land use type. The table below summarizes the Fee amounts per 1,000 Sq. Ft. and the total cost financed by Fees imposed on non-residential land uses.
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Table 26: Non - Residential Police Facilities Costs Financed by Fees Summary per Land Use Category 1
Land Use Type
EDUs per
1,000 Non -
Res. Sq. Ft. 1
Fee per 1,000
Non - Res. Sq. Ft
Number of
Projected
Non - Res.
Sq. Ft.
Costs
Financed by
Fees
[a] [b]= [a] x [$ per
EDU] [c] [d] = [c] x [b]
Commercial/Retail 0.89 $1,476 270,442 $399,125
Office 0.89 $1,474 31,647 $46,641
Industrial 0.25 $422 409,218 $172,701
Institutional/Other 0.67 $1,117 82,415 $92,095
Total $710,562
Note:
1. Numbers may not sum due to rounding.
B.6 Proposed Fees
A summary of the proposed Police Fees is presented in Table 27 below. The Fees recommended within this Fee Study reflect the maximum justifiable Fee level that may be imposed on new residential and non-residential development by the City under the statutory requirements of Government Code Section 66000 et. seq.
Table 27 : Police Facilities Costs Financed by Fees Summary per Land Use Category Land Use Type
Residential Fee
per Sq. Ft./ Non -
Residential Fee
per Room / per
1,000 Non - Res.
Sq. Ft.
Number of
Projected Res
Sq. Ft./ Room s /
Non - Res. Sq. Ft
Costs Financed
by Fees
Residential $0.97 3,280,638 $3,195,595
Commercial/Retail $1,476 270,442 $399,125
Office $1,474 31,647 $46,641
Industrial $422 409,218 $172,701
Institutional/Other $1,117 82,415 $92,095
Total $3,906,157
Note:
1. Numbers may not sum due to rounding.
B.7 Administrative Fee
There is also an Administrative portion of the DIF which is an administrative fee that funds the City’s costs of implementing and collecting the DIFs, including but not limited to calculation and collection of the fees, revenue and cost accounting of the fees collected, fee justification analysis, and preparation of any mandated reports. Per
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the City’s request, the administrative component of the DIF is calculated at 2% of the total impact fees collected in addition to the fees charged to new development, which is a customary industry standard. The calculated DIFs including the 2% administrative fee are presented in Table 28
below.
Table 28: Police Fee Summary (Includes 2.0% Administration Cost) Land Use Maximum
Fees
Residential (Per Sq. Ft.) $0.99
Commercial/Retail (Per Sq. Ft.) $1.51
Office (Per Sq. Ft.) $1.50
Industrial (Per Sq. Ft.) $0.43
Institutional/Other (per Sq. Ft.) $1.14
B.8 DIF Annual Cost Escalation Recommendations
The fees recommended within this Fee Study reflect the maximum justifiable fee level that may be imposed on new development under the statutory requirements of Government Code Section 66000
et. seq. As the DIFs proposed in this Fee Study
are based on Facilities costs in 2025 dollars, it is appropriate for the City to apply an annual escalator to these fee levels to account for inflation in acquisition and construction costs. DTA further recommends that, after adoption, the above Fees be reviewed each year and include a provision for an annual adjustment based on the current CCCI. This construction cost index is based upon the BCI cost indices average as produced by ENR.
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C Fire DIFs
C.1 Fire Facilities (Nexus Requirement AB 1600)
The Fire Facilities element includes those facilities used by the City to maintain Fire services. The Fees collected from new development will be used exclusively for Fire Department purposes. All new development within the City contributes to the direct and cumulative impacts of development on Fire Department facilities and creates the need for new facilities to accommodate growth. The facilities, equipment, and vehicles used to provide these services will have to be purchased or replaced to meet this increased demand. Thus, a reasonable relationship exists between the need for Fire Facilities and impact of residential and non-residential development.
Table 29 below
illustrates how the fire fee will meet the requirements of AB 1600 with regard to use of the Fee, type of development funded or partially funded by the Fee revenue, reasonable relationship to the need for facilities, and proportionality requirements.
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Table 29: Fire Facilities
AB 1600 Code
Section Description Justification
66001(a)(1) Identify the purpose of the Fee.
Provide a revenue source that will provide funds to
construct, expand, or enhance fire facilities, acquire
equipment, property, and a variety of specialized fire
and emergency vehicles that will mitigate the impacts
of new residential and non-residential development
to the City’s Fire facilities.
66001(a)(2) Identify the use to which the Fee
is to be put.
Expansion/construction/acquisition of fire facilities,
and purchase of property and equipment, and
vehicles.
66001(a)(3)
Demonstrate how there is a
reasonable relationship between
the Fee’s use and type of
development project on which
the Fee is imposed.
New residential and non-residential development in
the City will generate additional residents and
employees, thus increasing the need for trained fire
personnel. Buildings will need to be expanded or
enhanced, and property, equipment, and vehicles
used to provide these services will have to be
purchased to meet this increased demand and
maintain the current level of service to the City.
66001(a)(4)
Demonstrate how there is a
reasonable relationship between
the need for the public facilities
and type of development project
on which the Fee is imposed.
The additional residents and employees from new
development will impact demand for fire facilities.
New, expanded, or enhanced fire facilities, and
additional vehicles and equipment, would be needed
to mitigate the impacts of the additional residents and employees. If fire facilities are not constructed,
expanded, or enhanced, and equipment and vehicles
are not acquired, then overall LOS of public safety in
the City would suffer.
66001(b)
Demonstrate how there is a
reasonable relationship between
the amount of the Fee and cost
of the public facility.
The Fire Fee is based on the cost to expand or
enhance facilities, and purchase property, equipment,
and vehicles, at the same levels as provided to
existing residents.
The table below identifies the current inventory for Fire facilities. Notably, all furniture, fixtures, and equipment have been consolidated into one integrated unit that includes all department equipment, such as furniture modules and other equipment, to simplify the representation of the data.
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Table 30 : Current Fire Facilities Inventory
Facility Quantity
Buildings (Square Feet) 19,081
Land (Acres) 2.49
Vehicles (Number of Vehicles) 19
Furniture, Fixtures, and Equipment (One Integrated Unit) 1.0 C.2 Calculation Methodology
The Fire Fee was calculated using the standards-based methodology discussed in Section V. For future development to receive the same LOS that exists today, the City will need to acquire or construct additional Fire Facilities, vehicles, and equipment.
Assuming the City’s 2040 build-out, the City will need to acquire or construct additional infrastructure in order to continue to maintain the existing LOS.
The standards-based methodology (LOS) ensures that City facilities are appropriately developed and sized so that future residents and employees do not cause a reduced LOS by unduly burdening the infrastructure system, thus leading to decay and deterioration. This methodology provides several advantages, including not needing to know the size or cost of a specific facility. Another advantage of this methodology is that it does not involve the planning of any future facilities. This methodology assigns 100% of the Fees to new development and allows the City to apply the Fee revenue to any Fee-eligible project.
C.3 Level of Service (LOS)
As stated earlier in Section III, in September of 2021 the Governor of California signed AB 602, which provides new statewide requirements for local jurisdictions seeking to impose DIFs on development projects. Among these new requirements is that, when applicable, a Nexus Study shall identify the existing LOS for each public facility, identify the proposed new LOS, and include an explanation of why the new LOS is necessary. The LOS used to calculate the Fire Facilities DIFs in this section is the existing LOS, defined as the relationship between the replacement cost of Fire facilities (as described in this section) and the City’s existing EDUs as discussed in Section IV. The current LOS is calculated by dividing the total inventory of a facility type, as noted above, by the existing number of EDUs within the City. As indicated below, the existing LOS for every 1,000 EDUs is 1,188 square feet of building space.
The same LOS methodology applies to land, vehicles, and integrated equipment and is presented below in Table 31.
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Table 31: Fire Facilities Current LOS
Facility Type Facility Units per
1,000 EDUs
Buildings (Square Feet) 1,188
Land (Acres) 0.155
Vehicles (Number of Vehicles) 1.183
Furniture, Fixtures, and Equipment (Integrated Unit) 0.062 The facility units generated in the table above are used to determine future Fire Facility Units (buildings, land, vehicles, and equipment) funded by new development by 2040. These are the numbers required to maintain the same level of existing service by 2040. This is presented below in Table 32.
The mathematics behind these
calculations are presented in detail in Appendix A .
Table 32: Future Fire Facilities Required to Maintain the Cu rrent LOS in 2040 Facility Type
Number of Facility
Units Funded by
New Development
Buildings (Square Feet) 2,792
Land (Acres) 0.364
Vehicles (Number of Vehicles) 2.780
Furniture, Fixtures, and Equipment (Integrated Unit) 0.146 It’s important to recognize that construction costs are dependent on the real estate market at the time of development. Location, demand for land, encumbrances, comparable acquisitions, and construction costs are a few of the many variables that play into appraisals and negotiations. Each facility will have its own location and improvement requirements. However, DTA determined general cost estimates on a per square foot basis for Fire Facilities based on historical and current data available.
Building costs for public safety facilities are somewhat higher than conventional structures as they must be built to a higher standard and assume a higher level of use (24-hour use). These cost estimates were then applied to the future facility units.
Please see Table 33
below for additional details regarding the costs for Fire facilities.
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Table 33: Fire Total Facilities Costs in 2040
Facility Type
Facility Units
Funded by New
Development
Cost Per
Unit
Total Facility
Cost for Future
Development
Buildings (Square Feet) 2,792 $1,125 $3,140,761
Land (Acres) 0.364 $1,009,832 $367,545
Vehicles (Number) 2.780 $784,404 $2,180,594
Equipment (Integrated Unit) 0.146 $6,986,572 $1,022,222 Offsetting Revenue $60,834
Total Facilities Cost $6,650,288
Total Future EDUs 2,351
Cost per EDU $2,829
Note:
1. May not sum due to rounding.
C.4 Offsetting Revenues
In calculating DIFs, it is important to consider any offsetting revenue in the Fire facilities calculation total as any existing account balance or other offsetting funds must be subtracted from the facilities cost total. Currently, there is $60,834 in the current Fire account that must be subtracted as offsetting revenue.
C.5 Fire Facilities Fee Calculation
Once the total future facility cost has been determined, the maximum calculated Fee for each land use category can be generated. This is done by dividing the total future facility cost by the projected Fire facilities EDUs to generate a per EDU rate, which equals $2,829 per EDU as shown above. As discussed in Section II, per the directive of AB 602, for housing development projects, Nexus Studies adopted after July 1, 2023, will no longer be on a per unit basis and will instead be calculated based on the square footage of proposed units of the development, unless the local agency demonstrates that another metric is more appropriate.
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Table 34: Fire Facilities Costs Financed by Fees Summary per Residential Land Use Category Land Use Type EDUs per Unit Number of
Projected Units
Conversion
Factor Total EDUs
Residential 1.00 1,923 1,923
Total Residential [a] 1,923
Total Cost per EDU [b] $2,829
Total Cost Financed by Residential Fees [c] = [a] x [b] $5,440,545 Total Residential Sq. Ft. [d] 3,280,638
Total Cost per Residential Sq. Ft. [e] = [c]/[d] $1.66
Note:
1. May not sum due to rounding.
Again, the residential Fee per Sq. Ft. was determined by first multiplying the cost per EDU of $2,829 by the total number of residential EDUs (1,923), resulting in total amount funded from residential property of $5,440,545. This result was then divided by the total anticipated residential square feet (3,280,638) to generate the Fee per square foot of $1.66. Details of this calculation are shown in the table above.
Similarly, the non-residential Fee per room and per 1,000 Sq. Ft. was determined by multiplying the cost per EDU of $2,829 by the total number of non-residential EDUs applicable with each land use type. The table below summarizes the Fee amounts per lodging unit and per 1,000 Sq. Ft., as well as the total cost financed by Fees imposed on non-residential land uses.
Table 35: Fire Facilities Costs Financed by Fees Summary per Non - Residential Land Use Category
Land Use Type
EDUs per
1,000 Non -
Res. Sq. Ft.1
Fee per 1,000
Non - Res. Sq. Ft.
Number of Projected
Non - Res. Sq. Ft.
Costs Financed by
Fees
[a] [b] = [a] x [$ per EDU] [c] [e] = [c] x [b]
Commercial/Retail 0.89 $2,513 270,442 $679,516
Office 0.89 $2,509 31,647 $79,408
Industrial 0.25 $719 409,218 $294,026
Institutional/Other 0.67 $1,902 82,415 $156,793
Total Costs Financed by Non- Residential Fees $1,209,743 Note:
1. May not sum due to rounding.
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C.6 Proposed Fees
A summary of the proposed Fire Fees is presented in Table 36 below. The Fees recommended within this Fee Study reflect the maximum justifiable Fee level that may be imposed on new residential and non-residential development by the City under the statutory requirements of Government Code Section 66000 et. seq.
Table 36: Fire Facilities Costs Financed by Fees Summary per L and Use Category Land Type
Residential Fee per Sq.
Ft./ Non- Residential Fee
per 1,000 Non - Res. Sq.
Ft.
Number of
Projected Res an d
Non - Res. Sq. Ft
Costs
Financed
by Fees
Residential $1.66 3,280,638 $5,440,545
Commercial/Retail $2,513 270,442 $679,516
Office $2,509 31,647 $79,408
Industrial $719 409,218 $294,026
Institutional/Other $1,902 82,415 $156,793
Total $6,650,288
Notes:
1. Residential Fees are per square foot.
2 . Commercial/Retail, Office, Industrial, and Institutional/Other are per 1,000 square foot.
C.7 Administrative Fee
There is also an Administrative portion of the DIF which is an administrative fee that funds the City’s costs of implementing and collecting the DIFs, including but not limited to calculation and collection of the fees, revenue and cost accounting of the fees collected, fee justification analysis, and preparation of any mandated reports.
Per the City’s request, the administrative component of the DIF is calculated at 2% of the total impact fees collected in addition to the fees charged to new development, which is a customary industry standard. The calculated DIFs including the 2% administrative fee are presented in Table 37
below.
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Table 37 : Fire Facilities Fee Summary (Includes 2% Administration Costs) Land Use Maximum
Fees
Residential (Per Sq. Ft.) $1.69
Commercial/Retail (Per Sq. Ft.) $2.56
Office (Per Sq. Ft.) $2.56
Industrial (Per Sq. Ft.) $0.73
Institutional/Other (per Sq. Ft.) $1.94
C.8 DIF Annual Cost Escalation Recommendations
The Fees recommended within this Fee Study reflect the maximum justifiable Fee level that may be imposed on new residential development. As the DIFs proposed in this Fee Study are based on Future Facilities costs in 2025 dollars, it is appropriate for the City to apply an annual escalator to these Fee levels to account for inflation in acquisition and construction costs. DTA further recommends that, after adoption, the above Fees be reviewed each year and include a provision for an annual adjustment based on the current CCCI. This CCI is based upon the BCI cost indices as produced by ENR.
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D Park s DIFs
D.1 Park s Development Facilities Fees (Nexus Requirement AB 1600) The park and recreation facilities will serve the residents of the City by providing facilities for recreation while enhancing the community’s appeal and quality of life.
The Fee Study includes a component for the development of new park and recreation facilities to serve new residential development for the City through 2040.
Covered in this fee category is acquisition of parkland, construction of park improvements, and enhancements to parks and recreation facilities. In maintaining the overall quality of life for residents, excellent park and recreation programs are important for the well-being of a city's community. Not only do parks make the community more attractive to residents (providing a stronger market base for local businesses), but they can also directly influence a city's ability to enhance its fiscal base by attracting commercial and industrial businesses. As noted in Section V, the fee analysis for Parks will be limited to City Residents and will exclude other non- residential development.
Table 38
below illustrates how the Parks Fee will meet the requirements of AB 1600 with regard to use of the Fee, type of development funded or partially funded by the Fee revenue, reasonable relationship to the need for facilities, and proportionality requirements.
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Table 38: Park s Facilities
Description Justification
Identify the purpose of the Fee.
Provide a revenue source that will provide funds to
develop or enhance parks and recreation facilities,
and acquire vehicles and equipment, that will
mitigate the impacts of new residential development
to the City’s park and recreation facilities.
Identify the use to which the Fee
is to be put.
Acquisition and enhancement of parks and recreation
facilities, and the further development of existing park land.
Demonstrate how there is a
reasonable relationship between
the Fee’s use and type of
development project on which
the Fee is imposed.
New residential development in the City will generate
additional residents, thereby increasing the need for
parks and recreational facilities. Park and recreational facilities equipment used to provide these services
will have to be expanded or enhanced to meet this
increased demand and maintain the same level of
service to the City.
Demonstrate how there is a
reasonable relationship between
the need for the public facilities
and type of development project
on which the Fee is imposed.
The additional residents from new development will
impact demand for parks and recreational facilities.
New or enhanced parks and recreational facilities are
needed to mitigate the impact of the additional
residents. If additional park and recreational facilities are not constructed, then the level of service will
decline and the overall quality of life for residents in the City would suffer.
Demonstrate how there is a
reasonable relationship between
the amount of the Fee and cost
of the public facility.
The parks and recreation facilities fee is based on the cost to provide park and recreational facilities, at the same levels as provided to existing residents.
The table below identifies the current inventory for Parks facilities. Notably, using information provided by the City, DTA has determined that the City has 130 total acres of usable park land as shown below in Table 39.
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Table 39: Current P ark Facilities Inventory
Park Inventory Acres
Skate Park 0.30
La Verne Sports Park 21.00
Wheeler Avenue Park 5.70
Kirk B. Johnson Memorial-Pelota
Park 4.60
Valley Rancho Mini-Park 0.20
Challenger Park 2.50
Kuns Park 2.50
Wilderness Open Space 0.00
Golden Hills Wilderness Parks 20.00
Mills Park 7.00
Veteran's Hall Park 5.70
Price-Hayes Park 0.50
Lincoln Park 0.60
Mainiero Square 0.50
Rustic Canyon Park 0.50
Emerald Park 3.00
Heritage Park 4.00
Las Flores Park 16.00
Live Oak Park 13.00
Lowell Brant Park 5.00
Oak Mesa Park 9.50
Los Encinos Park 7.00
Lordsburg Park 0.90
Total 130 .0 0
D.2 Calculation Methodology
The Parks Fee was calculated using the standards-based methodology discussed in Section V. For future development to receive the same LOS as exists today, the City will need to construct or enhance park facilities and equipment. Assuming the City’s growth over the next 16 years, the City will need to acquire or construct additional infrastructure in order to continue to maintain the existing LOS. Additionally, this fee was only allocated to residential development, and excluded non-residential development.
D.3 Level of Service (LOS)
As stated in Section III, in September of 2021 the Governor of California signed AB 602, which provides new Statewide requirements for local jurisdictions seeking to impose DIFs on development projects. Among these new requirements is that, when applicable, a Nexus Study shall identify the existing LOS for each public facility,
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identify the proposed new LOS, and include an explanation of why the new LOS is necessary. The LOS used to calculate the Parks Fee in this section is the existing LOS, defined as the relationship between the cost of park facilities (as described in this section) and the City’s existing EDUs as discussed in Section IV.
The standards-based LOS ensures that City facilities are appropriately developed and sized so that future residents do not cause a reduced LOS by unduly burdening the infrastructure system, thus leading to decay and deterioration. This methodology provides several advantages, including not needing to know the size or cost of a specific facility. Another advantage of this methodology is that it does not involve the planning of any future facilities. This methodology assigns 100% of the Fees to new development and allows the City to apply the Fee revenue to any Fee-eligible project.
The current LOS is calculated by dividing the total inventory of a facility type, as noted above, by the existing number of EDUs within the City. As indicated below in Table 40 ,
the existing LOS for every 1,000 EDUs is 10.46 acres.
Table 40 : Park Facilities Current LOS
Facility Type Facility Units per 1,000
EDUs
Parks (Acres) 10.46
Notably, despite the existing standard identified above, the City intends to maintain the targeted standard (per the General Plan), of 3.0 acres per 1,000 residents. This standard, based on 2.60 residents per EDU, equates to 7.80 acres per 1,000 EDUs and is used to determine future Parks Facility Units (i.e., acres of parks) funded by new development in 2040. This is achieved by multiplying the target standard of 7.80 acres per 1,000 EDUs by the number of projected EDUs of 1,923, resulting in 14.99 acres to be funded by new development. This is presented below in Table 41.
Table 41: Park Future Facilities in 2040
Facility Type
Number of Facility
Units Funded by
New Development
Parks (Acres) 14.99
It’s important to note that construction costs are dependent on the real estate market at the time of development. Location, demand for land, encumbrances, comparable acquisitions, and construction costs are a few of the many variables that play into appraisals and negotiations. To determine a fair and accurate land acquisition cost, DTA utilized the CoStar Real Estate Software Platform and created a comparable land inventory of 10 undeveloped properties ranging from 0.32 acres to 25.0 acres in and around the City. Each of the properties in the inventory were sold between 2008
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and 2023 and an average of their sales price was determined. The land inventory produced totaled 10 properties, meeting the proper criteria. Based on this inventory, DTA used an average of $1,009,832 per acre as an estimated cost of land acquisition.
Using information provided by City staff, DTA determined that the cost for Park Development was $585,111 per acre. Combined, the cost per acre, including land and development, is $1,594,943 per acre as indicated in Table 42 below.
Table 42: Park Cost Summary
Park Land Categories Cost Per Acre
Land Acquisition $1,009,832
Park Development $585,111
Total Costs $1,594,943
Based on the costs per acre above and the required acreage of Parks from new development of 14.99, the total costs of new park land acquisition and park development equal approximately $23,907,937, in order to maintain the existing level of service. Table 43
below for additional detail.
Table 43: Park Total Facilities Costs in 2040 1
Facility Type
Facility Units
Funded by New
Development
Cost Per
Unit
Total Facility
Cost for Future
Development
Parks (Acres) 14.99 $1,594,943 $23,907,937
Offsetting Revenue $0
Total Facilities Cost $23,907,937
Total Future EDUs 1,923
Cost per EDU $12,433
Note:
1. May not sum due to rounding.
D.4 Offsetting Revenues
According to information obtained by DTA, there are offsetting revenues that need to be considered in the park facilities calculation total. As of the end of June 2025, the City had a negative balance of $671,100 in its current Park and this amount is not counted as offsetting revenue in the DIF calculation.
D.5 Park Facilities Fee Calculation
Once the total future facility cost has been determined, the maximum calculated Fee for each land use category can be generated. This is done by dividing the total future facility cost by the projected Park Facilities EDUs to generate a per EDU rate, which equals $12,433 per EDU as shown below. As discussed in Section II, per the directive of AB 602, for housing development projects, Nexus Studies adopted after July 1, 2022, will no longer be on a per unit basis and will instead be calculated based
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on the square footage of proposed units of the development, unless the local agency demonstrates that another metric is more appropriate.
The residential Fee per Sq. Ft. was determined by first multiplying the cost per EDU of $12,433 by the total number of residential EDUs (1,923), resulting in total amount funded from residential property of $23,907,937. This result was then divided by the total anticipated residential square feet 3,280,638 to generate the Fee per square foot of $7.29. Details of this calculation are shown in Table 44 below.
Table 44: Park Facilities Costs Financed by Fees Summary per Land U se Category 1 Land Use Type EDUs per Unit Number of
Projected Units
Conversion
Factor Total EDUs
Residential 1.00 1,923 1,923
Total EDUs [a] 1,923
Total Cost per EDU [b] $12,433
Total Costs Financed by Residential Fees [c] = [a] x [b] $23,907,937 Total Residential Sq. Ft. [d] 3,280,638
Total Fee per Residential Sq. Ft. [e] = [c]/[d] $7.29
Note:
1. May not sum due to rounding.
D.6 Proposed Fees
A summary of the proposed Park Fees is presented in Table 45 below. The Fees recommended within this Fee Study reflect the maximum justifiable Fee level that may be imposed on new residential development by the City under the statutory requirements of Government Code Section 66000
et. seq.
Table 45: Park Facilities Costs Financed by Fees Summary per Land U se Category Residential Res. Fee
per Sq. Ft.
Projected
Res. Sq. Ft.
Costs Financed by
Fees
Residential $7.29 3,280,638 $23,907,937
Total $23,907,937
Note:
1. Residential Fees are per square foot.
D.7 Administration Fee
There is also an Administrative portion of the DIF which is an administrative fee that funds the City’s costs of implementing and collecting the DIFs, including but not limited to calculation and collection of the fees, revenue and cost accounting of the fees collected, fee justification analysis, and preparation of any mandated reports.
Per the City’s request, the administrative component of the DIF is calculated at 2% of the total impact fees collected in addition to the fees charged to new development,
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which is a customary industry standard. The calculated DIFs including the 2% administrative fee are presented in Table 46 below.
Table 46: Park Facilities Fee Su m m ary (Includes 2.0% Administration Costs).
Land Use Calculated Fees
Residential (per Sq. Ft.) $7.43
D.8 DIF Annual Cost Escalation Recommendations
The Fees recommended within this Fee Study reflect the maximum justifiable Fee level that may be imposed on new residential development. As the DIFs proposed in this Fee Study are based on Future Facilities costs in 2025 dollars, it is appropriate for the City to apply an annual escalator to these Fee levels to account for inflation in acquisition and construction costs. DTA further recommends that, after adoption, the above Fees should be reviewed each year and include a provision for an annual adjustment based on the current CCCI. This CCI is based upon the BCI cost indices average as produced by ENR.
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E Storm Drain Fees
E.1 Storm Drain Facilities (Nexus Requirement AB 1600)
The Storm Drain Facilities will serve the residents of City by providing facilities that ensure proper water drainage in those areas susceptible to storm water runoff.
Storm Drain Facilities include those used by the City to provide storm drainage services to both residents and employees within the City. The Storm Drain Fee will include facilities and improvements necessary to handle the storm drain runoff created by new development through build-out by the year 2040. The City identified the need for facilities and improvements as shown below in Table 48.
Table 47 b
elow illustrates how the Storm Drain Facilities Fee will meet the requirements of AB 1600 regarding the use of the Fee, type of development funded or partially funded by the Fee revenue, reasonable relationship to the need for the facilities, and proportionality requirements.
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Table 47 : Storm Drain Facilities Nexus Requirement
AB 1600 Code
Section Description Justification
66001(a)(1) Identify the purpose of the Fee.
A revenue source that will provide funds to construct and expand storm drain improvements to mitigate the
impacts of new development on the City's storm drain
system.
66001(a)(2) Identify the use to which the Fee is
to be put.
Fund or partially fund the projects identified on the
facilities list.
66001(a)(3)
Demonstrate how there is a
reasonable relationship between
the Fee’s use and type of
development project on which the
fee is imposed.
New residential and non-residential development will
generate a need for additional drainage facilities in the City. The Fee revenue will be used to the projects listed on the facilities list. Storm drain fees collected from new development will be used exclusively for and to partially fund these projects. Fees imposed on new residential
and non-residential development represent a reasonable
method for mitigating the impacts of such new
development and any resulting increase in LOS above
and beyond the current LOS that is required to meet the plan approved by the City.
66001(a)(4)
Demonstrate how there is a
reasonable relationship between
the need for the public facilities
and type of development project
on which the Fee is imposed.
Storm Drain Fee revenue will go towards the projects on the facilities list, from which new development is partially benefiting from, in terms of ensuring proper drainage of storm water runoff to protect from flooding.
66001(b)
Demonstrate how there is a
reasonable relationship between
the amount of the Fee and cost of
the public facility.
Project costs are allocated to new development based on the storm water runoff generated by new development.
The specific Fee imposed on the various land uses are
based on stormwater runoff coefficients as compared to
a residential unit.
For Storm Drain Facilities, the City has provided DTA with the list of Future Facilities to be included in the Fee Study (the “Needs List”). Please refer to Section V for details on the Needs List. Table 48
below provides a summary of the Needs List. The facility costs presented below are based on estimates provided by the City.
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Table 48: Storm Drain Facilities Costs
Storm Drain Facilities Facility Cost
Stormwater - Full Trash Capture $2,100,000
Pelota Park - Stormwater Capture Multi Benefit Project $10,000,000 West Marshall Canyon Debris Basin $1,545,000
Dry Weather Well - Via De Mansion $450,000
Storm Drain Master Plan $150,000
Storm Drain Facilities Subtotal $14,245,000
Offsetting Revenues $1,410,422
Storm Drain Facilities Total $12,834,578
According to the City, it has been determined that these facilities are needed to serve new development. Currently, these facilities are generally operating at an appropriate and acceptable LOS. Therefore, the costs of facilities have been allocated to new development and existing development based on their expected usage at build-out.
E.2 Offsetting Revenues
In calculating DIFs, it is important to consider any offsetting revenue in the Fire calculation total, as any existing account balance or other offsetting funds must be subtracted from the cost total. Currently, there is $1,410,422 in the current Storm Drain account that must be subtracted as offsetting revenue.
E.3 Level of Service
As stated earlier in Section III, in September of 2021 the Governor of California signed AB 602 which provides new statewide requirements for local jurisdictions seeking to impose development impact fees on development projects. Among these new requirements is that when applicable, a nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is necessary. This section looks at the Level of Service for Storm Drain facilities to ensure that there will be sufficient system-wide capacity to direct storm drain runoff at storm recurrence intervals as dictated by City policy from new and existing development.
The list of projects to be built by the City (and presented in detail in the Appendix to this Study) details the planned facilities necessary to provide required services to the City, and it also outlines the criteria used to design a system needed to serve both existing and future development. The portion of the fee associated with existing Storm Drain facilities represent the current level of service which would be applied to new development. Notably, the future facilities have been identified by the City (on their Capital Improvement Plan) as facilities required to serve both new and existing development, and therefore any increase in level of service above and beyond the current level of service would be an increase required to meet the plan
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approved by the City.
E.4 Calculation Methodology
Storm Drain Fees were calculated for each of the five (5) land use categories based on the runoff rates, measured in terms relative contribution of runoff, (i.e., the EBU factor - see Section V) generated by each land use. Specifically, the reasonable relationship used to allocate storm drain costs between existing, converted use and future development is relative runoff contribution. A rational method of computing runoff rates was used in the form of Q = C x I x A, where “Q” is equal to runoff volume, “C” is the ratio of impervious area to total area studied, “I” is rainfall intensity, and “A” is Area, in acres of the study area. A runoff factor, “C” of 1.00, indicates a totally impervious site, where every drop of rain would find its way to the public streets as runoff. However, it can be shown that only the relative contribution of runoff needs to be considered if a unit of runoff is computed (Q/I), where only the runoff factor and acreage are considered. This is the assumption used in this calculation.
Total Runoff was calculated by applying these runoff factors to the estimated acreage attributable to the various dwelling unit counts and non-residential square feet identified in the demographics section of this Fee Study. As discussed in Section V, runoff factors per acre for residential units and non-residential development, are based on numbers provided by the City Staff and from the 2020 Cal Trans Design Highway Design Manual Chapter 810 Hydrology and reviewed with the City.
All proposed Storm Drain facilities were sized to meet the needs of both existing and future residents and employees. To determine the Storm Drain Fees, DTA calculated the total runoff expected through 2040 based on the anticipated residential and non- residential growth in the City. Current total runoff for all of the land uses was determined to generate 650 current runoff EBUs and 91 projected runoff EBUs.
These calculations are presented in detail in Appendix A. The costs of these facilities have been allocated between existing development and new development based on their percentage of build-out EBUs. As illustrated in Table 49 below ,
87.75% of the
costs will be allocated to existing development and 12.25% of the costs will be allocated to new development. Based on this allocation between new and existing development, $1,572,213 of the planned Storm Drain facilities costs would be funded by the Fee imposed on new development. The remaining $11,262,365 must be funded through other sources to be determined by the City.
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Table 49: Storm Drain Facilities Cost Allocation Summary Development Type Storm w ater
Run off (EBUs)
Percentage
Allocated
Facility Cost
Allocation
Existing Development 650 87.75% $11,262,365
New Development 91 12.25% $1,572,213
Total 741 100.00% $12,834,578
Notes:
1. Some figures may not sum due to rounding.
As indicated below in Table 50 , the analysis estimates that new development will produce 1,923 new residential development units and 793,721 new square feet of non-residential development resulting in 91 projected EBUs. This table presents the allocation of projected total EBUs between residential units and non-residential square footage development.
Table 50 : Projected EBU Calculations
Land Use Type
Projected
Development
(Units)
Projected
Development
(Square Feet)
Total Run off
(EBUs )
Residential 1,923 60
Commercial / Retail 270,442 12
Office 31,647 1
Industrial 409,218 15
Institutional / Other 82,415 3
Total 1,923 793,721 91
Notes:
1. Some figures may not sum due to rounding.
Table 51 presented below summarizes the cost per unit runoff which is generated by dividing the cost to new development presented in Table 49 of $1,572,213 by the projected unit runoff of 91 EBUs that will be generated by new development. When accounting for the anticipated unit runoff from new development, the cost per unit runoff totals $17,318 as shown in the table below. This cost was then applied to the various land uses and their respective total runoff rates to determine the proposed Fee.
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Table 51: Cost per EBU 1
Proposed Facilities Costs Total
Cost Allocated to New Development $1,572,213
Total EBUs (New Development) 91
Cost per EBU $17,318
Note:
1. Numbers may not sum due to rounding.
E.5 Storm Drain Facilities Fee Calculation
As discussed in Section III, per the directive of AB 602, for housing development projects, nexus studies adopted after July 1, 2022, will no longer be on a per unit basis, but will be calculated based on
square footage of proposed units of the
development, unless the local agency demonstrates that another metric is more appropriate.
The residential Fee per Sq. Ft. was determined by first multiplying the cost per EBU of $17,318 by the total number of residential EBUs (60), resulting in total amount funded from residential property of $1,032,357. This result was then divided by the total projected residential square feet (3,280,638) to generate the Fee per square foot of $0.31. Details of this calculation are shown in the table above.
Table 52: Residential Storm Drain Facilities Costs Financed by Fees Summary per Land Use Category 1
Land Use Type E BUs per Unit Number of
Projected Units Calculation Tota l E BUs
Residential 0.03 1,923 60
[ a] 60
Total Cost per EBU [b] $17,318
Total Fees [c] = [a] x [b] $1,032,357
Total Residential Sq. Ft. [d] 3,280,638
Total Fee per Residential Sq. Ft. [ e] = [c]/[d] $0.3 1 Note:
1. Numbers may not sum due to rounding.
Similarly, the Non-Residential Fee per 1,000 sq. ft. was determined by multiplying the cost per EBU of $17,318 by the total number of non-residential EBUs applicable with each land use type. Table 53
shown below summarizes the Fee amounts per 1,000
sq. ft. and the total cost financed by Fees imposed on non-residential land uses.
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Table 53: Non - Residential Storm Drain Facilities Costs Financed by Fee Summary Land Use Type E BUs per 1,0 0 0
Non - Res. Sq. Ft.1
Non - Residential
Fee per 1,000 S q.
Ft.
Number of
Projected
Non - Res. Sq. Ft.
Costs Financed
by Fees
[a] [b] = [a] x [$ per
EBU] [c] [e] = [c] x [b]
Commercial/Retail 0.044 $755 270,442 $204,281
Office 0.038 $660 31,647 $20,885
Industrial 0.037 $636 409,218 $260,301
Institutional/Other 0.038 $660 82,415 $54,389
Total $539,856
Notes:
1. Numbers may not sum due to rounding.
E.6 Proposed Fees
A summary of the proposed Storm Drain Fees is presented in Table 54 below. The Fees recommended within this Fee Study reflect the maximum justifiable Fee level that may be imposed on new residential and non-residential development by the City under the statutory requirements of Government Code Section 66000 et. seq.
Table 54: Storm Drain Facilities Costs Financed by Fees Summary per Land U se Category Land Type
Res. Fee per
Sq. Ft./1,000
Non - Res Fee
per Sq. Ft.
Projected Res. Sq.
Ft./Non - Res. Sq. Ft.
Costs Financed
by Fees
Residential $0.31 3,280,638 $1,032,357
Commercial/Retail $755 270,442 $204,281
Office $660 31,647 $20,885
Industrial $636 409,218 $260,301
Institutional/Other $660 82,415 $54,389
Total $1,572,213
E.7 Administration Fee
There is also an Administrative portion of the DIF which is an administrative fee that funds the City’s costs of implementing and collecting the DIFs, including but not limited to calculation and collection of the fees, revenue and cost accounting of the fees collected, fee justification analysis, and preparation of any mandated reports.
Per the City’s request, the administrative component of the DIF is calculated at 2% of the total impact fees collected in addition to the fees charged to new development,
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which is a customary industry standard. The calculated DIFs including the 2% administrative fee are presented in Table 55 below
Table 55: Storm Drain Fee Summary (Includes 2.0% Administrative Cost) Land Use Maximum
Fees
Residential (Per Sq. Ft.) $0.32
Commercial/Retail (Per Sq. Ft.) $0.77
Office (Per Sq. Ft.) $0.67
Industrial (Per Sq. Ft.) $0.65
Institutional/Other (per Sq. Ft.) $0.67
E.8 DIF Annual Cost Escalation Recommendations
The fees recommended within this Fee Study reflect the maximum justifiable fee level that may be imposed on new development under the statutory requirements of Government Code Section 66000
et. seq. As the DIFs proposed in this Fee Study
are based on Facilities costs in 2025 dollars, it is appropriate for the City to apply an annual escalator to these fee levels to account for inflation in acquisition and construction costs. DTA further recommends that, after adoption, the above impact fees be reviewed each year and include a provision for an annual adjustment based on the current CCCI. This construction cost index is based upon the BCI cost indices average for Los Angeles as produced by ENR.
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F Undergrounding Fees
F.1 Undergrounding Facilities (Nexus Requirement AB 1600) Utility Undergrounding benefit future residents and employees by providing safe and aesthetic vehicular access to properties. The fees collected from the new development will be used exclusively for utilities undergrounding purposes. All new development within the City contributes to the direct and cumulative impacts of development on undergrounding facilities and creates the need for new facilities to accommodate growth. Thus, a reasonable relationship exists between the need for undergrounding facilities and impact of residential and non-residential development. Table 56
below illustrates how the Undergrounding Fee will meet the requirements of AB 1600 regarding the use of the Fee, type of development funded or partially funded by the Fee revenue, reasonable relationship to the need for the facilities, and proportionality requirements.
Table 56: Undergrounding Facilities Nexus Requirement
AB 1600 Code
Section Description Justification
66001(a)(1) Identify the purpose of the Fee. Provide a revenue to remove overhead power lines and poles and replace with underground conduits.
66001(a)(2) Identify the use to which the Fee is
to be put.
Fund or partially fund undergrounding projects within
the City limits.
66001(a)(3)
Demonstrate how there is a
reasonable relationship between
the Fee’s use and type of
development project on which the
fee is imposed.
New residential and non-residential development will
benefit from undergrounding of overhead power lines
from a visual and a safety standpoint. An increase in
traffic volume generated from new development
increases the chances of power lines involved accidents proportionally; therefore, the safety benefit accrues to new development proportionally. New development
occurs on major streets city-wide and will have
proportional benefit related to the level of utilization of public streets.
66001(a)(4)
Demonstrate how there is a
reasonable relationship between
the need for the public facilities
and type of development project
on which the Fee is imposed.
Undergrounding Fee revenue will go towards funding
new development’s share of undergrounding projects. An
increase in traffic volume generated from new
development increases the chances of power lines
involved accidents, proportionally; therefore, the safety benefit accrues to new development proportionally.
66001(b)
Demonstrate how there is a
reasonable relationship between
the amount of the Fee and cost of
the public facility.
Project costs are allocated to new development based on undergrounding demand generated by new
development. The fee is based on the portion of the cost attributed to new development.
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For Undergrounding Facilities, the City has provided DTA with the list of Future Facilities to be included in the Fee Study (the “Needs List”). Please refer to Section V for details on the Needs List. Table 57
below provides a summary of the Needs List.
The facilities presented below are based on estimates provided by the City.
Table 57 : Undergrounding Facilities Costs
Undergrounding P ro jects Facility Cost
Arrow Highway $12,000,000
Undergrounding Facilities Subtotal $12,000,000
Offsetting Revenues $127,274
Undergrounding Facilities Total $11,872,726
According to the City, it has been determined that the above projects are needed to serve both existing and new development. Therefore, the costs of facilities have been allocated to new development and existing development based on their expected usage at build-out.
F.2 Offsetting Revenues
In calculating DIFs, it is important to consider any offsetting revenue in the Fire calculation total, as any existing account balance or other offsetting funds must be subtracted from the cost total. Currently, there is $127,774 in the current Undergrounding account that must be subtracted as offsetting revenue.
F.3 Level of Service
As stated earlier in Section III, in September of 2021 the Governor of California signed AB 602 which provides new statewide requirements for local jurisdictions seeking to impose development impact fees on development projects. Among these new requirements is that when applicable, a nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is necessary. This section looks at the Level of Service for Undergrounding facilities to ensure that there will be sufficient system-wide capacity to accommodate new development The list of projects to be built by the City details the planned facilities necessary to provide required services to the City, and it also outlines the criteria used to design a system needed to serve both existing and future development. Notably, the future facilities have been identified by the City (on their Capital Improvement Plan) as facilities required to serve both new and existing development, and therefore any increase in level of service above and beyond the current level of service would be an increase required to meet the plan approved by the City.
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F.4 Calculation Methodology
The proposed Undergrounding projects are to meet the needs of both existing and future residents and employees. To determine the Undergrounding Fees, DTA calculated the EDUs through 2040 based on the anticipated residential and non- residential growth in the City. Total current EDUs for all of the land uses was determined to generate 14,636 current EDUs and 2,182 projected EDUs. These calculations are presented in detail in Appendix A .
The costs of these facilities have been allocated between existing development and new development based on their percentage of build-out EDUs. As illustrated in Table 58 b elow, 87.02% of the costs will be allocated to existing development and
12.98% of the costs will be allocated to new development. Based on this allocation between new and existing development, $1,540,641 of the planned Undergrounding facilities costs would be funded by the Fee imposed on new development. The remaining $10,332,085 must be funded through other sources to be determined by the City.
Table 58: Undergrounding Facilities Cost Allocation Summary 1 Development Type E D U s 2 Percentage Allocated Facility Cost Allocated Existing Development 14,636 87.02% $10,332,085
New Development 2,182 12.98% $1,540,641
Total 16,818 100.00% $11,872,726
Notes:
1. Some figures may not sum due to rounding.
2. See Table 10, Section V.
As indicated below in Table 59, the analysis estimates that new development will produce 1,923 new residential development units and 793,721 new square feet of non-residential development resulting in 2,182 projected EDUs. This table presents the allocation of projected total EDUs between residential units and non-residential square footage development.
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Table 59: Projected ED U Calculations
Land Use Type
Projected
Development
(Units)
Projected
Development
(Square Feet)
Total ED Us
Residential 1,923 1,923
Commercial/Retail 270,442 118
Office 31,647 24
Industrial 409,218 71
Institutional/Other 82,415 46
Total 1,923 793,721 2,182
Notes:
1. Some figures may not sum due to rounding.
Table 60 presented below summarizes the cost per unit runoff which is generated by dividing the cost to new development of $1,540,641 by the projected 2,182 EDUs that will be generated by new development. When accounting for the anticipated growth from new development, the cost per EDU totals $706 as shown in the table below. This cost was then applied to the various land uses and their respective total runoff rates to determine the proposed Fee.
Table 60 : Cost per ED U 1
Proposed Facilities Costs Total
Cost Allocated to New Development $1,540,641
Total EDUs (New Development) 2,182
Cost per ED U $706
Note:
1. Numbers may not sum due to rounding.
F.5 Undergrounding Facilities Fee Calculation
As discussed in Section III, per the directive of AB 602, for housing development projects, nexus studies adopted after July 1, 2022, will no longer be on a per unit basis, but will be calculated based on
square footage of proposed units of the
development, unless the local agency demonstrates that another metric is more appropriate.
The residential Fee per Sq. Ft. was determined by first multiplying the cost per EDU of $706 by the total number of residential EDUs (1,923), resulting in total amount funded from residential property of $1,357,510. This result was then divided by the
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total projected residential square feet (3,280,638) to generate the Fee per square foot of $0.41. Details of this calculation are shown in the table below.
Table 61: Residential Undergrounding Facilities Costs Financed by Fees Summary per Residential Land Use Category 1
Land Use Type EDUs per Unit Number of
Projected Units Calculation Total EDUs
Residential 1.00 1,923 1,923
Total EDUs [a] 1,923
Total Cost per EDU [b] $706
Total Fees [c] = [a] x [b] $1,357,510
Total Residential Sq. Ft. [d] 3,280,638
Total Cost per Residential Sq. Ft. [e] = [c]/[d] $0.4 1 Note:
1. Numbers may not sum due to rounding.
Similarly, the Non-Residential Fee per 1,000 Sq. Ft. was determined by multiplying the cost per EDU of $706 by the total number of non-residential EDUs applicable with each land use type. Table 62
shown below summarizes the Fee amounts per 1,000
Sq. Ft. and the total cost financed by Fees imposed on non-residential land uses.
Table 62: Non - Residential U n dergro un din g Facilities Costs Financed by Fees Summary per Land Use Category 1
Land Use Type
EDUs per
1,000 Non -
Res. Sq. Ft. 1
Fee per 1,000
Non - Res. Sq. Ft
Number of
Projected
Non - Res.
Sq. Ft.
Costs
Financed by
Fees
[a] [b]= [a] x [$ per
EDU] [c] [d] = [c] x [b]
Commercial/Retail 0.44 $309 270,442 $83,535
Office 0.74 $526 31,647 $16,637
Industrial 0.17 $123 409,218 $50,293
Institutional/Other 0.56 $396 82,415 $32,666
Total $183,131
Notes:
1. Numbers may not sum due to rounding.
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F.6 Proposed Fees
A summary of the proposed Undergrounding Fees is presented in Table 63 below.
The Fees recommended within this Fee Study reflect the maximum justifiable Fee level that may be imposed on new residential and non-residential development by the City under the statutory requirements of Government Code Section 66000 et.
seq.
Table 63: Undergrounding Facilities Costs Financed by Fees Summary per Land U se Category Land Type
Res. Fee per
Sq. Ft./1,000
Non - Res Fee
per Sq. Ft.
Projected Res. Sq.
Ft./Non - Res. Sq. Ft.
Costs Financed
by Fees
Residential $0.41 3,280,638 $1,357,510
Commercial Retail $309 270,442 $83,535
Office $526 31,647 $16,637
Industrial $123 409,218 $50,293
Institutional / Other $396 82,415 $32,666
Total $1,540,641
F.7 Administration Fee
There is also an Administrative portion of the DIF which is an administrative fee that funds the City’s costs of implementing and collecting the DIFs, including but not limited to calculation and collection of the fees, revenue and cost accounting of the fees collected, fee justification analysis, and preparation of any mandated reports.
Per the City’s request, the administrative component of the DIF is calculated at 2% of the total impact fees collected in addition to the fees charged to new development, which is a customary industry standard. The calculated DIFs including the 2% administrative fee are presented in Table 64
below.
Table 64: Undergrounding Fee Summary (Includes 2.0% Administrative Cost) Land Use Maximum
Fees
Residential (Per Sq. Ft.) $0.42
Commercial/Retail (Per Sq. Ft.) $0.32
Office (Per Sq. Ft.) $0.54
Industrial (Per Sq. Ft.) $0.13
Institutional/Other (per Sq. Ft.) $0.40
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F.8 DIF Annual Cost Escalation Recommendations
The fees recommended within this Fee Study reflect the maximum justifiable fee level that may be imposed on new development under the statutory requirements of Government Code Section 66000
et. seq. As the DIFs proposed in this Fee Study are based on Facilities costs in 2025 dollars, it is appropriate for the City to apply an annual escalator to these fee levels to account for inflation in acquisition and construction costs. DTA further recommends that, after adoption, the above impact fees be reviewed each year and include a provision for an annual adjustment based on the current CCCI. This construction cost index is based upon the BCI cost indices average for Los Angeles as produced by ENR.
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SUMMARY OF FEES
The total proposed fee amounts to finance new development’s share of the costs of new facilities are summarized below.
Table 65: Proposed DIF Summary
Land Use City
Administration Police Fire Parks Storm
Drain
Under -
grounding
Residential (P er Sq. Ft.) $4.67 $0.99 $1.69 $7.43 $0.32 $0.42 Commercial/Retail (P er Sq. Ft.) $3.49 $1.51 $2.56 $0.77 $0.32 Office (P er Sq. Ft.) $5.94 $1.50 $2.56 $0.67 $0.54 Industrial (P er Sq. Ft.) $1.39 $0.43 $0.73 $0.65 $0.13 Institutional/Other (P er Sq. Ft.) $4.48 $1.14 $1.94 $0.67 $0.40 At the time of permit issuance, new development shall pay the appropriate fee for each facility category, and the City shall deposit the funds in a separate account dedicated to the construction of the proposed facilities in accordance with Government Code Section 66006(a).
Future development may result from intensification and/or redevelopment of existing land uses. Each such redevelopment project will be evaluated in order to calculate the applicable fees on the new proposed development, taking into account the development previously mitigated.
As stated in Section VI, fees recommended within this Fee Study reflect the maximum justifiable fee level that may be imposed on new development under the statutory requirements of Government Code Section 66000 et. seq. As the DIFs proposed in this Fee Study are based on Facilities costs in 2025 dollars, it is appropriate for the City to apply an annual escalator to these fee levels to account for inflation in acquisition and construction costs. DTA further recommends that, after adoption, the above Fees be reviewed each year and include a provision for an annual adjustment based on the current CCCI. This construction cost index is based upon the BCI cost indices as produced by ENR.
In addition to the legal requirements covered in Section III, there are a number of recommendations for the adoption and administration of the DIFs presented in Section VIII of this Fee Study. All recommendations presented in this section are based on the Mitigation Fee Act (Government Code §66000 et seq.), also referred to as the “Act,” which provides specific requirements for establishing and administering DIF programs. The Act also mandates procedures for administering impact fee programs, such as the collection and accounting of impact fees, refunds, mandatory updates, and reporting requirements.
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IMPLEMENTATION OF FEE SCHEDULE
At the time the City imposes an impact fee, Government Code 66020 requires a written statement of the amount of the fee and a written notice of a 90-day period during which the imposition of the fee can be protested. Prior to the enactment of Section 66020, a developer could not challenge the validity of fees imposed on a residential development without refusing to pay them. Under these circumstances, developers were required to pay disputed fees before they could be challenged. Section 66020 was drafted to correct that problem.
The various subparts of Section 66020 allow for a procedure that permits a developer to pay the fees under protest, obtain the relevant building permit, and then proceed with the project while pursuing an action to challenge the fees. If the action is successful, the fees will be refunded with interest. However, failure to protest imposition of the fee during the allowed period may deprive the fee payer of the right to any subsequent legal challenges.
Any challenges to be filed must be submitted within 90 days of enactment. The subsequent sections provide specific guidelines in implementing DIFs.
A The Collection of DIFs
A
ccording to Government Code Section 66007, any local agency that imposes any fees or charges on a residential development for the construction of public improvements or facilities shall not require the payment of those fees or charges, notwithstanding any other provision of law, until the date of the final inspection, or the date the Certificate of Occupancy is issued, whichever occurs first.
However, utility service fees may be collected at the time an application for utility service is received. If the residential development contains more than one dwelling, the local agency may determine whether the fees or charges shall be paid on a pro rata basis for each dwelling when (i) it receives its final inspection or Certificate of Occupancy, (ii) on a pro rata basis when a certain percentage of the dwellings have received their final inspection or Certificate of Occupancy, or (iii) on a lump sum basis when the first dwelling in the development receives its final inspection or Certificate of Occupancy, whichever of the three occur first.
An exception allows DIFs to be collected at an earlier time if they will be used to reimburse the agency for expenditures previously made or for public improvements or facilities for which money has already been appropriated. If any fee or charge specified is not fully paid prior to the issuance of a building permit for construction, the local agency issuing the building permit may require the property owner, or lessee if the lessee’s interest appears of record, as a condition of issuance of the building permit, to execute a contract to pay the fee or charge, or applicable portion.
Statutory restrictions in place for residential development at the time at which fees may be collected do not apply to non-residential development. In cases where the fees are not collected upon the issuance of building permits, Sections 6607(c)(1) and (2) provide that the
Council Packet - November 17, 2025
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DRAFT Development Impact Fee Justification Study
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City may require the property owner of a non-residential development to execute a contract to pay the fee, and subsequently record that contract as a lien against the property owner.
In addition, pursuant to Government Code Section 65852.2(f), ADUs are exempt from incurring impact fees from local agencies, special districts, and water corporations if such unit is less than 750 square feet. If an ADU is 750 square feet or larger, impact fees shall be charged proportionately in relation to the square footage of the ADU to the square footage of the primary dwelling unit. Furthermore, the water capital improvement fee, water supply fee, and sewer capital improvement fee shall not be applicable to any ADU created within the existing space of a single-family residence or accessory structure, including, but not limited to, a studio, pool house, or other similar structure. Please note that for the purposes of this Fee Study, future ADUs are included in the build-out projections, but some of these units may not be required to pay an impact fee. As a result, the City may not collect the full amount of costs as shown in the Needs Lists included herein.
B The Assignment and Expenditure of Fee Revenue
A
ccording to Section 66006, if a local agency requires the payment of a fee specified in connection with the approval of a development project, the local agency receiving the fee shall deposit it with the other fees for the improvement to be funded in a separate capital facilities account or fund in a manner to avoid any commingling of the fees with other revenues and funds of the local agency, except for temporary investments, and expend those fees solely for the purpose for which the fee was collected.
Any interest income earned in the capital facilities account or fund shall also be deposited in that account or fund and shall be expended only for the purpose for which the fee was originally collected. Common practice is to maintain separate funds or accounts for impact fee revenues by facility category (i.e., streets, park improvements, but not for individual projects). DTA recommends the continuation of that approach.
DIF revenue should not be spent on any infrastructure, property or equipment needed to mitigate an existing deficiency.
C E xemptions, Reductions, and Waivers
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f a project has characteristics that indicate its impact on a particular public facility or infrastructure system will be significantly and permanently smaller than the average impact used to calculate impact fees in this study, the fees should be reduced accordingly. The City may decide to voluntarily waive or reduce the fees that would otherwise apply to a project to promote goals such as affordable housing or economic development. However, the implementation of this policy may not result in increased costs for other development projects and is allowed only if such costs are offset from other revenue sources.
D Developer Improvement Credits
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f the City maintains a policy that requires a developer, as a condition of project approval, to construct facilities for which impact fees have been or will be charged, the impact fee
Council Packet - November 17, 2025
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IMPLEMENTATION OF FEE
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imposed on that development project for that type of facility must be adjusted to reflect a credit for such dedication or construction. Furthermore, the impact fee imposed on that development project for that type of facility must be adjusted to reflect a credit for the cost of the facilities or improvements constructed by the developer. If circumstances allow a developer to dedicate land, buildings, or other valuable considerations in lieu of paying fees, the City maintains the discretion to accept or reject such offers and may negotiate the terms under which an offer would be accepted.
E Existing Development Credit
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f a project involves the replacement, redevelopment, or intensification of previously existing development, impact fees should be applied only to the portion of the project which represents a net increase in demand for relevant facilities, applying the measure of demand used in this study to calculate that particular fee. Since residential service demand is normally estimated on the basis of demand per dwelling unit, an addition to a single-family dwelling unit typically would not be subject to an impact fee if it does not increase the number of dwelling units in the structure. In any project that results in a net increase in the number of dwelling units, the added units would normally be subjected to impact fees. A similar analysis can be applied to non-residential development using a measure of demand on which impact fees are based.
F Annual Reporting and Accounting of Fees
A
B 1600 requires that both general law and charter cities account for every fee that they collect under its terms. Funds collected for each capital facility or service shall be deposited in separate accounts and not commingled with any other funds for other impact fees. While funds are accruing for individual capital facilities, the City must keep track of each fund and provide an annual report. Section 66006 requires that for each separate account or fund established, the local agency shall, within 180 days after the last day of each fiscal year, make available to the public the following information for the fiscal year:
1. A brief description of the type of fee in the account or fund;
2. The amount of the fee;
3. The beginning and ending balance of the account or fund;
4. The amount of the fees collected, and the interest earned;
5. An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees;
6. An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in Paragraph (2) of Subdivision (a) of Section 66001, and the public improvement remains incomplete;
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7. A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan; and
8. The amount of refunds made pursuant To Subdivision (e) of Section 66001 and any allocations pursuant to Subdivision (f) of Section 66001.
The City must review the information made available at the next regularly scheduled public meeting not less than 15 days after this information is made available to the public. Notice of the time and place of the meeting, including the address where this information may be reviewed, shall be mailed at least 15 days prior to the meeting to any interested party who files a written request with the local agency for mailed notice of the meeting.
G Refunding Policy
U
nder the Mitigation Fee Act, Govt. Code §66000 et seq., each DIF must be deposited in a separate capital facilities account and may be expended only for the purposes for which it was collected. For all unexpended fees, the agency must make findings every 5 years that:
1. Identify the purpose to which the fee will be put;
2. Demonstrate a reasonable relationship between the unexpended balance and the purpose for which the fee was charged;
3. Ascertain the sources and funding for any as-yet-incomplete public improvements; and
4. Designate the approximate date the agency expects the funding for uncompleted improvements to be deposited in the account [§66001(d)(1)]. The Act provides that “if the findings are not made as required by [the Act], the local agency shall refund the moneys in the account” to the current owners of the properties for which the fees were paid [§66001(d)(2)].
Failure to make the findings specified in Mitigation Fee Act requires a refund of all unexpended DIFs. When sufficient funds have been collected to complete financing of the public improvements contained in the CIP, the public agency shall identify "an approximate date by which the construction of the public improvement will be commenced" within 180 days of collection of the required funds (Gov. Code §66001(e)]. Failure to comply with this requirement also mandates the return of the collected funds, as stated above.
In addition, pursuant to Government Code Section 65852.2(f), ADUs are exempt from incurring impact fees from local agencies, special districts, and water corporations if such unit is less than 750 square feet. If an ADU is 750 square feet or larger, impact fees shall be charged proportionately in relation to the square footage of the ADU to the square footage of the primary dwelling unit. Furthermore, as mentioned earlier, the water capital improvement fee, water supply fee, and sewer fee shall not be applicable to any accessory dwelling unit created within the existing space of a single-family residence or accessory
Council Packet - November 17, 2025
72 SECTION VIII
IMPLEMENTATION OF FEE
SCHEDULE
City of La Verne June 16, 2025
DRAFT Development Impact Fee Justification Study
www.FinanceDTA.com
structure, including, but not limited to, a studio, pool house, or other similar structure.
This report does not address, nor has DTA been asked to determine, whether any current or proposed DIFs are valid under the U.S. Constitution’s Fifth Amendment Takings Clause.
In
Sheetz v. County of El Dorado (2024) ___U.S.___, the U.S. Supreme Court held that its decisions in Nollan v. California Coastal Comm’n (1987) 483 U.S. 825 and Dolan v. City of Tigard (1994) 512 U.S. 374 apply to legislatively imposed conditions on land-use permits.
However, the Supreme Court left it to the California appellate court on remand to address the validity of the traffic impact fee at issue in the case and determine how to apply Nollan/Dolan in this context. DTA cannot predict how courts will resolve such issues in the future and is providing no services or guarantees of any kind concerning the validity of any impact fees under the U.S. Constitution’s Fifth Amendment Takings Clause.
H Annual Update of the Capital Improvement Plan (“CIP”) I
t is common for jurisdictions to prepare a CIP in conjunction with a fee program. In fact, AB 1600 encourages the use of a CIP to assist in scheduling and implementing the services and improvements funded through impact fees (Gov. Code §66002). A good CIP establishes a schedule of improvements necessary to accommodate the projected growth. The CIP must indicate the approximate size, location, time of availability, and estimated costs of all improvements to be financed through fees [Gov. Code §66002(a)]. In order to create a usable CIP, a municipality must have an accurate understanding of its current service baseline and its projected growth. This requires an understanding of when, where, and how growth may occur within the area. The more information collected about future growth, the more comprehensive and accurate the CIP will be. A CIP can also help a municipality determine when new public improvements or the expansion of existing public improvements is needed in relation to the timing of new development.
If the public agency adopts a CIP, it must be updated annually [Gov. Code §66002(b)]. 10 days’ published notice is provided pursuant to Government Code §65090 and is also provided to any city or county that may be significantly affected by the CIP. If a CIP is adopted and is used as a basis for identifying the use of impact fees, the CIP must be adopted and updated annually by a resolution of the governing body at a public hearing. In the absence of a CIP, an alternative is to identify improvements in other public documents, such as General Plans, land studies, and other documents.
I Administration Costs of Fee Implementation
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he cost of implementing the DIFs is not included in the fees themselves and must be determined by the City. To recover the periodic costs of updating the fees studies, implementing the program, ongoing staff costs, managing the updates, and preparing annual and 5-year updates required by the Mitigation Fee Act, an administration fee may be added to the Fees calculated in this Fee Study. DTA recommends that these fee expenses are handled administratively and pass the costs on to user fees charged to applicants for processing fee applications. The calculation of the administrative cost for each fee in this study is presented in each respective fee section and in the Executive Summary.