Attachment 2 - Exhibit "A" to Resolution - Government Building Facilities Nexus Fee Study

Government Building Facilities Fee
Nexus Study
City of Manteca
August 2024
Prepared for: Prepared by:
3620 American River Drive, Suite 175
Sacramento, CA 95864
(916) 970-8001
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ATTACHMENT 2
Government Building Facilities Fee Nexus Study 1 August 2024 City of Manteca
Table of Contents
Executive Summary and Introductory Sections ....................................................................................... 3 Introduction ............................................................................................................................ 3 Nexus Study ........................................................................................................................... 4 Administration Fee ................................................................................................................. 6 Fee Adjusment Procedures ..................................................................................................... 7 Timing of Fee Payment .......................................................................................................... 7 Section 1 Legal Context and Methodology ......................................................................................... 8 Nexus Study Requirements (Assembly Bill 1600) ................................................................ 8 AB 602 ................................................................................................................................... 8 Methodology ........................................................................................................................ 11 Section 2 Population and Land Use Assumptions ........................................................................... 13 Land Use Types ................................................................................................................... 13 Growth Forecasts ................................................................................................................. 13 Service Population ............................................................................................................... 14 Occupant Density ................................................................................................................. 16 Average Unit Sizes .............................................................................................................. 17 Section 3 Government Building Facilities Fee ................................................................................. 19 Cost Summary and CIP ........................................................................................................ 19 Fee Methodology ................................................................................................................. 23 Fee Summary ....................................................................................................................... 24 Existing and Proposed Level of Service .............................................................................. 24 Revenue Projecttions ........................................................................................................... 27 Nexus Requirement Summary ............................................................................................. 28 Section 4 Implementation and Administration ................................................................................ 30 Implementation .................................................................................................................... 30 Fee Program Administrative Requirements ......................................................................... 30 Fee Adjustment Procedures ................................................................................................. 31 Timing of Fee Payment ........................................................................................................ 31 Administrative Fee ............................................................................................................... 32 Credits and Reimbursement Policies ................................................................................... 32 Programming Revenues with the CIP .................................................................................. 33 Fee Reporting ....................................................................................................................... 33 Accessory Dwelling Units ................................................................................................... 34 Specialized Development Projects ....................................................................................... 34 Rebuild or Expansion Projects ............................................................................................. 34 ATTACHMENT 2
Government Building Facilities Fee Nexus Study 2 August 2024 City of Manteca
Tables
Table ES-1: Proposed Government Building Facilities Impact Fees ............................................................ 5 Table ES-2: Comparison of Proposed Fees to Existing Fees ........................................................................ 6 Table 2-1: Existing Service Population ...................................................................................................... 14 Table 2-2: Projected New Employee Growth at Buildout .......................................................................... 15 Table 2-3: Projected New Population and Employee Growth at Buildout ................................................. 16 Table 2-4: Population and Density Assumptions ........................................................................................ 17 Table 2-5: Average Unit Sizes .................................................................................................................... 18 Table 3-1: Government Building Facilities Planned Facilities ................................................................... 20 Table 3-2 : Percentage Distribution of New Facility Costs ........................................................................ 22 Table 3-3: Government Building Facilities Fee Cost per Capita ................................................................ 23 Table 3-4: Government Building Facilities Fee Calculation ...................................................................... 24 Table 3-5: Existing Government Building Facilities .................................................................................. 25 Table 3-6: Existing Level of Service .......................................................................................................... 25 Table 3-7: Government Building Facilities Fee Estimates Revenue at Buildout ....................................... 27 ATTACHMENT 2
Government Building Facilities Fee Nexus Study 3 August 2024 City of Manteca

EXECUTIVE SUMMARY AND INTRODUCTORY

SECTIONS

INTRODUCTION
The City of Manteca (City) is a central valley City located in San Joaquin County (County), 76 miles east of San Francisco. The “Family City” lies between Interstate 5 and State Route 99.

Located in the “heart” of California, Manteca is alive with opportunities. Manteca is a familyfriendly city and as the County’s third largest, it is one of the state’s fastest growing cities. Manteca is thriving on multiple fronts with key infrastructure, commercial, residential, and recreational developments.

The City was originally founded in 1861 by Joshua Cowell, a landowner who built many of the first homes in the city and went on to serve as its first mayor. Beginning in the early 1900s, the city grew with expanding storefronts, manufacturing, and agricultural business. The City was officially incorporated on May 28, 1918. Since the construction of the 120-bypass section of State Route 120, the City has risen in popularity with commuters from the Bay Area. With this influx of residents, the city’s population has more than tripled since 1980. At the time of the 2020 U.S.

Census, the City population was 83,498. As of January 1, 2024, the California Department of Finance (DOF) estimates that the City population has grown to 90,917.

As the resident population and non-resident employment in the City increase, there exists a correlating rise in the demand for public infrastructure and services to support the increased demand on the City. California’s Assembly Bill 1600 (AB 1600), adopted in 1987 and codified as California Government Code Section 66000 et. seq., allows the City to impose Development Impact Fees on new development within the City. Development Impact Fees (DIFs) are one-time charges on new development that are collected and used by the City to cover the cost of capital facilities, vehicles, and equipment required to serve new growth.

The Government Building Facilities Fee was originally adopted in 1986. The most recent update to the fee was adopted following the April 2006 Nexus Study prepared by ECO:LOGIC and Economic & Planning Systems, Inc. (EPS). City of Manteca Ordinance No. 1479 amends the City’s Building Code Section 15.04.060 E and states that the fee would remain the same from its 2007 adoption through December 21, 2011. Starting on January 1, 2012, the fee will be adjusted to reflect the previous two years’ changes of the annual Engineering News Record (ENR) 20-Cities Construction Cost Index (CCI) increase, then escalated annually by the ENR CCI.

The City worked with De Novo Planning Group to complete the Environmental Impact Report (EIR) for the City’s General Plan update that was completed in June 2023 and revised in February 2024. Data from the EIR was used for land use projections and service population assumptions in ATTACHMENT 2
Government Building Facilities Fee Nexus Study 4 August 2024 City of Manteca
this Nexus Study. Note that some of the assumptions in this Nexus Study differ slightly from the DOF, General Plan, and EIR based on the information available and assumptions used in all of the data sources and analyses. The Nexus Study is based on persons per household to calculate population growth for residential and employees per 1,000 square feet for non-residential worker growth. While the existing and baseline assumptions are generally the same, the Buildout numbers may differ slightly based on what assumptions each document uses. This Nexus Study is based on the information available for each land use at this time.

The goal of the City is to develop a fee program that achieves the funding objectives required to fund facilities identified in the City’s Capital Improvement Program (CIP), balances fee levels with desired economic growth, and complies with the legal requirements of AB 1600 and Assembly Bill 602 (AB 602).

NEXUS STUDY
Purpose
As development occurs in the City, new backbone infrastructure and capital facilities are required to mitigate the increased demand created by new residents and workers. DIFs fund this required backbone infrastructure and capital facilities as well as the related administrative costs through the City’s fee program. This Nexus Study updates the Government Building Facilities Impact Fee.

This report is designed to satisfy AB 1600 Nexus requirements, comply with AB 602 requirements, and provide the necessary technical analysis to support the adoption of the updated fees. The fees will be effective 60 days after the City’s final action adopting the fees.

Fee Program Costs
The original Government Building Facilities Fee Nexus Study, adopted in 2006, identified $107.6 million in new construction projects that need to be built to serve the City of Manteca at buildout.

The fee program reviewed the facilities needed, sizes of the facilities, and updated the costs. The animal control facility is now excluded, and the police station square footage has been increased based on a needs analysis. We reviewed comparable costs in the region as well as escalating the 2006 costs to 2024 values to estimate an average cost per square foot for the facilities. The updated total costs of these City assets are approximately $229 million. These costs are shown in Table 3-1.

The updated cost used in this analysis are based on the escalated 2006 costs for the facilities included and recently constructed facilities or planned costs included in Master Plans for the City of Tracy, the City of Stockton, the City of Cathedral City, and the City of Moorpark. The analysis reviewed the cost per square foot in Tracy for the administration building, community center, library, police station, police training facility, and Boyd service center. In Stockton, the cost per ATTACHMENT 2
Government Building Facilities Fee Nexus Study 5 August 2024 City of Manteca
square foot for the library and community center is included in the average. For Cathedral City, the cost per square foot for the civic center, library, police headquarters, and maintenance and operations facility were reviewed. Finally, in Moorpark, the cost per square foot for the city hall, recreation facilities, library, and police services center were used. LDA partners provided an updated 2024 square footage needs and cost analysis for the police station. The park and public works corporation yard includes the cost for a recently constructed corporation yard building in the City. The cost for the multi-use community facility, animal shelter expansion, and public safety facility are based on current cost estimates from the City based on conceptual plans.

Updated Fees
Pursuant to AB 602, residential development fees are to be assessed on a per square foot basis, unless the City makes certain, required findings. To yield consistency across fees assessed on nonresidential land uses, non-residential development fees will continue to be assessed per 1,000 building square foot. Hotel fees are charged on a per room basis.

Table ES-1 shows the proposed Government Building Facilities Impact Fees.

Table ES-1: Proposed Government Building Facilities Impact Fees Proposed Fee Comparison with Existing Fees
Table ES-2 compares the proposed Government Building Facilities Fees to the existing Government Building Facilities Fees (as of January 1, 2024). The existing residential per unit fees Land Use
City
Administrative
Facilities
Community
Facilities/
Civic Space
Police
Facilities
Maintenance/
Storage/
Corporation
Yard Space
Total Cost
per
Capita Density
Subtotal
Proposed
Fee
Administrative
Fee1
Total
Proposed
Fee
Average
Unit Size
(SF)
Proposed
Fee per
Sq. Ft.

Residential Fee per Sq. Ft.

Single Family2
$702 $820 $777 $105 $2,404 3.29 $7,914 $396 $8,310 2,400 $3.46 Multi Family $702 $820 $777 $105 $2,404 2.33 $5,609 $280 $5,889 1,100 $5.35 Non-Residential
Commercial $260 $303 $287 $39 $889 2.00 $1,778.00 $88.90 $1,866.90 - - Office $260 $303 $287 $39 $889 3.33 $2,960.37 $148.02 $3,108.39 - - Industrial $260 $303 $287 $39 $889 1.03 $917.45 $45.87 $963.32 - - Hotel $260 $303 $287 $39 $889 0.80 $711.20 $35.56 $746.76 - - 1 An administrative fee of 5.0% is included in the fees shown for (1) legal, accounting, and other administrative support and (2) development impact fee program administration costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analysis. 2 An accessory dwelling unit (ADU) is a second unit that is attached or detached from a single-family home. In accordance with Assembly Bill No. 881 approved on October 9, 2019, Government Building Facilities fees will not be charged for an ADU that is less than 750 square feet. For an ADU that is 750 square feet or larger, the ADU will be charged proportionately in relation to the square footage of the primary dwelling unit. Since the residential fees are now being charged on a square footage basis, ADU fees will be calculated by multiplying the Single Family Residential fee by the ADU’s square footage.

Fee per Unit
Fee per 1,000 Sq. Ft. / Room
Cost per Capita
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Government Building Facilities Fee Nexus Study 6 August 2024 City of Manteca
were converted to fees per square foot using the same average unit sizes as the proposed fees.

Hotels are currently charged the commercial rate for the Government Building Facilities Fee. The fee update includes a hotel category and charges the fee per room. To account for new development’s fair share of the facilities since the start of the fee program, fund balances were removed from the fee program costs, then new development’s proportional share of the cost was calculated before dividing by the new development projections.

Table ES-2: Comparison of Proposed Fees to Existing Fees

ADMINISTRATION FEE
The City oversees the implementation and administration of the Government Building Facilities Fee, consistent with the requirements of the Mitigation Fee Act. A five percent (5%) Administration Fee is added to fund the costs of the City’s management and ongoing fee administration, collection, and reporting. This includes costs associated with City staff and consultant time, studies, and administration to support the fee. Industry standard ranges from three to six percent (3-6%) of the fee for the administrative component of a development fee program.

The administrative functions include, but are not limited to, the following:
• Annual fee adjustments
• Annual fee reporting
• Additional fee reporting every five years
• Posting of nexus studies and fee schedules on the City’s website Existing Land Use Category New Land Use Category
Proposed
Fees
Percent
Change
Residential per unit per SF
Very Low & Low Density Residential Single Family $5,955.84 $2.48 $3.46 39% Medium Density Residential Single or Multi-Family $4,966.84 $4.52 $3.46 or 5.35 -23% or 18% High Density & Mixed Use Residential Multi-family $4,470.01 $4.06 $5.35 32% Non-Residential (Fee per Square Foot)
per SF
Commercial (General, Neighborhood, Mixed Use) Commercial n/a $1.68 $1.87 11% Heavy Industrial n/a $0.64
Light Industrial n/a $0.87
Business Park Industrial n/a $1.68
Business Professional n/a $2.21
Hotel (Fee per Room)
Hotel1
n/a $630.00 $746.76 19%
1 Assumes the commercial rate for existing and an average room size of 375 square feet. 11% or 51%
41% or 85%
Existing Fees
Industrial
Office
$0.96
$3.11
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Government Building Facilities Fee Nexus Study 7 August 2024 City of Manteca
• Nexus study updates every eight years (an AB 602 requirement) • Master Plans necessary to support the Nexus study updates • Staff and consultant time related to fee preparation, collection, tracking, and administration
• Staff and consultant time needed to track credits and reimbursements for improvements constructed in the fee program
In addition to the aforementioned administrative activities, the City is responsible for using fee revenues to plan for and construct required capital facilities. The City currently collects a three percent (3%) Administrative Fee, but a five percent (5%) fee is included in this Nexus Study given the additional fee reporting requirements of AB 516, posting of information per AB 1483, Nexus Study updates every eight years per AB 602, and additional staff time to administer this fee program and the potential for a Master Plan in the future to support a Nexus Study update.

FEE ADJUSMENT PROCEDURES
The Government Building Facilities Fee may be adjusted periodically to reflect revised facility requirements, receipt of funding from alternative sources (e.g., state or federal grants), revised facilities or costs, changes in demographics, changes in the average unit square footage, or changes in the land use plan. In addition, the fee will be updated on an annual basis on July 1st using the increase in the ENR 20-Cities CCI.

TIMING OF FEE PAYMENT
Fees will be collected at the time the building permit for the project is issued. Unless otherwise required by law, the fee amount will be equal to the fees in effect at the time a developer/applicant submits a complete and adequate building permit application. All residential projects will pay a fee based on the livable square footage of the residential unit(s). For high-density residential projects (defined in the General Plan as high-density residential development with multi-family dwellings, including multifamily townhomes, apartments and condominiums), the fees will be due at the time of the building permit for each building. For high-density residential projects with communal space, the non-residential communal portion (e.g., clubhouse, maintenance facility, gym, etc.) will not be assessed impact fees as the impact is assumed to be captured in the residential fees. Areas that are accessible by the public (e.g., leasing office) will be charged impact fees according to use.

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Government Building Facilities Fee Nexus Study 8 August 2024 City of Manteca
Section 1 LEGAL CONTEXT AND METHODOLOGY
NEXUS STUDY REQUIREMENTS (ASSEMBLY BILL 1600)
AB 1600 was enacted by the State of California in 1987 creating the Mitigation Fee Act - Section 66000 et seq. of the Government Code. The Mitigation Fee Act requires that all public agencies satisfy the following requirements when establishing, increasing, or imposing a fee as a condition of approval of a development project:

1. Identify the purpose of the fee.

2. Identify the use to which the fee is to be put. If the use is financing public facilities, the facilities shall be identified.

3. Determine how there is a reasonable relationship between the fees use and the type of development project on which the fee is imposed.

4. Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.

5. Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.

The purpose of this report is to demonstrate that the Government Building Facilities Fee complies with the Mitigation Fee Act. The assumptions, methodologies, facility standards, costs, and cost allocation factors that were used to establish the nexus between the fee and the development on which the fee will be charged are summarized in subsequent sections of this Report.

AB 602
AB 602, which was enacted by the State of California in 2021, amended Sections 65940.1 and 66019, and added Section 66016.5 to the Government Code. AB 602 requires that if a local agency conducts and adopts an impact fee nexus study after January 1, 2022, the local agency shall follow all of the following standards and practices:

1. Before the adoption of an associated development fee, an impact fee nexus study shall be adopted.

2. When applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.

3. A nexus study shall include information that supports the local agency’s actions, as required by subdivision (a) of Section 66001 of the Government Code.

4. If a nexus study supports the increase of an existing fee, the local agency shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.

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Government Building Facilities Fee Nexus Study 9 August 2024 City of Manteca

5. A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A local agency that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development. A nexus study is not required to comply with the requirements to calculate a fee imposed on a housing development project proportionally to the square footage of the proposed units if the local agency makes the following findings:
• An explanation as to why square footage is not the appropriate metric to calculate fees imposed on housing development project.
• An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development. • That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.

6. Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.

7. All studies shall be adopted at a public hearing with at least 30 days’ notice, and the local agency shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing.

8. Studies shall be updated at least every eight years, from the period beginning on January 1, 2022.

9. The local agency may use the impact fee nexus study template developed by the Department of Housing and Community Development pursuant to Section 50466.5 of the Health and Safety Code.

This report demonstrates that the Government Building Facilities Fee complies with AB 602. An analysis of level of service for each fee is summarized below and in the subsequent nexus chapter of this report. The methodology performed to calculate the updated fee ensures that the costs for facilities are proportionately spread between existing and future users. Any existing deficiencies were removed and are not charged to new development.

Existing Level of Service
AB 602 states, “When applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service and include an explanation of why the new level of service is appropriate.”
The Government Building Facility fee includes the facilities that are needed to serve the City at buildout and calculates the percentage attributable to new development based on new developments’ proportional share of the new facilities. The percentage attributable to new ATTACHMENT 2
Government Building Facilities Fee Nexus Study 10 August 2024 City of Manteca
development is then applied to the costs of the facilities. This methodology conservatively ensures that new development is only funding their proportionate share of the total facilities. As shown in the Nexus Study analysis, based on the square footage per capita of the existing facilities, the level of service per capita for existing facilities is slightly lower than the level of service planned for build out. The analysis identifies the square foot per capita when the fee program began compared to the planned square foot per capita at buildout. As shown, the level of service that is proposed to serve the population at buildout slightly exceeds the level of service when the program began, but it does maintain a fairly similar level of service of roughly 3.50 square feet per capita compared to the existing level of service amount of 2.35 square feet per capita. This analysis is based on planned facilities and new developments’ proportional fair share of these planned facilities; therefore, this Nexus Study makes the required nexus findings per AB 602.

Government Code section 66001(g) states, "A fee shall not include the costs attributable to existing deficiencies in public facilities, but may include the costs attributable to the increased demand for public facilities reasonably related to the development project in order to (1) refurbish existing facilities to maintain the existing level of service, or (2) achieve an adopted level of service that is consistent with the general plan." The CIP, shown in Appendix A, will adopt the new level of service. Furthermore, the new level of service is consistent with the following General Plan policies of the City:
• Goal GM-1: Maintain appropriate growth management measures that ensure a high quality of life, appropriate levels of service, and address anticipated development patterns and timing of public services, facilities, and infrastructure to serve new growth. • GM-1.1: Maintain a Growth Management Program that requires new development to meet and address level of service standards for water, sewer, circulation, schools, parks, public safety, and other necessary services and facilities and demonstrate consistency with the General Plan.

Furthermore, as shown in Table 3-6, the new level of service is the same for both existing residents and new development. The City is not requiring new development to build out at a higher level of service than what is being placed on existing residents at Buildout. Rather, the planned level of service, reflected in the City’s Capital Improvement Plan for the Government Building Facilities Fee, will provide the higher, adopted level of service for both existing residents and future development to be funded by both existing residents and future development.

AB 602 also states that if a nexus study supports the increase of an existing fee, the city, county, or special district shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee. This Nexus Study includes similar improvements to the nexus study supporting the original fee. The animal control facility that was included in the original nexus study has been removed as that project has been completed. The ATTACHMENT 2
Government Building Facilities Fee Nexus Study 11 August 2024 City of Manteca
remaining improvements included in the original analysis are included in this Analysis as they have not yet been constructed because they are large projects that take a lot of planning and funds to complete. The current fund balance of $32.4 million is netted out from the development fee calculation but is available for funding these facilities as well. The nexus study that supported the existing fee was completed in 2006. Construction costs have increased significantly since 2006 and therefore the fee program was updated to accurately represent the cost of construction, updated assumptions, and meet updated legal requirements. Given the increase in construction cost, additional funds are necessary to cover new development’s fair share of these facilities.

Capital Improvement Plan
AB 602 states that large jurisdictions shall adopt a capital improvement plan (CIP) as part of the nexus study. This report includes the Government Building Facilities Fee Capital Improvement Plan, which includes the facilities to be adopted as the City’s CIP for the DIF program, which is shown in Table 3-1 in Chapter 3 and Table A-1 in Appendix A.

METHODOLOGY
Imposed fees require various findings to ensure that a reasonable relationship exists between the fee amount and the cost of the facility or portion of the facility attributable to the new development.

Several methodologies are available to determine fee amounts. The most common methodologies are defined by the “Impact Fee Nexus Study Template” prepared for the California Department of Housing and Community Development by Terner Center for Housing Innovation at UC Berkeley.

Choosing the appropriate methodology depends on the type of facility for which the fee is calculated and the availability of documentation to support the fee calculation. Following is a discussion of the methodologies available to calculate the separate fee components in this report.

This Nexus Study is based on the planned facilities methodology.

Existing Inventory Method
The existing inventory method, also known as the “incremental method” uses a facility standard based on the ratio of existing facilities to the demand on the facilities by the existing service population on a cost per unit or cost per square foot basis. Under this approach, new development funds the expansion of facilities at the same standard currently serving existing development. By definition, the existing inventory method ensures that no facility deficiencies are spread to future development. This method is appropriate and often used when a long-range plan for new facilities is not available and when planned facilities are similar in cost and nature to existing facilities.

Planned Facilities Method
The planned facilities method calculates the proposed fee based on the ratio of planned facilities to the increase in demand associated with new development. This method is appropriate when ATTACHMENT 2
Government Building Facilities Fee Nexus Study 12 August 2024 City of Manteca
planned facilities have been defined by a long-range master plan or expenditure plan which includes specific facilities and cost estimates. As the Planned Facilities Method relies on a longrange master plan that may change as the plan is implemented, fees based on this methodology need to be regularly updated to remain consistent with the project lists and current plans.

System Plan Method
The system plan method utilizes an integrated approach to allocate the cost of existing facilities and the costs of planned facilities to the total development in the study area. This method is appropriate when calculating a systemwide fee in which new development will fund an integrated system of facilities at the future standard attributable to new development. By spreading the costs of an integrated system incorporating the existing facilities and planned facilities costs to the total development in the study area, this ensures that new development only pays their proportional share of the total system costs and is not responsible for rectifying any existing deficiencies.

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Government Building Facilities Fee Nexus Study 13 August 2024 City of Manteca
Section 2 POPULATION AND LAND USE ASSUMPTIONS

LAND USE TYPES
The land use types included in the Nexus Study are being consolidated. Per the General Plan, the medium density designation provides for smaller single-family homes in more imaginative lotting arrangements, duplex and triplex development, smaller scale multi-family developments, including cottage homes, garden apartments, townhouses, and cluster housing, and mobile home parks. The density range will accommodate small lot single family homes that will typically be smaller in size and more affordable to residents. Furthermore, the General Plan Revised Addendum to the Environmental Impact Report for the Manteca General Plan Update (February 2024) includes future and existing growth for single family and multi-family units. Therefore, residential fees were consolidated into single family residential and multi-family residential.

The non-residential fee categories were consolidated based on the type of use and for the ease of administering the fee program as the assumptions used for heavy and light industrial are similar in the analysis. The assumptions for business professional and business park industrial are similar as well.

To ensure a reasonable relationship between each fee and the type of development paying the fee, different land use types must be distinguished. The land use categories used in this analysis are defined below:
• Single Family Residential (SFR): Detached single-family dwelling units. Includes very low density, low density, single family medium density, and age-restricted units. • Multi-Family Residential (MFR): Attached residential project consisting of 2 or more units. • Accessory Dwelling Unit (ADU): A second unit, attached or detached from a SFR. • Commercial: All commercial, retail, educational, and mixed-use development. • Office: All general, professional, and medical office development. Includes business park industrial.
• Industrial: All manufacturing and warehouse development. • Hotel: All hotel development.

Some developments may include more than one land use type, such as an industrial warehouse with living quarters (a live-work designation) or a planned unit development with both Single- and Multi-Family uses. In these cases, the fees will be calculated separately for each land use type.

GROWTH FORECASTS
Growth projections are used as indicators of demand. The City’s existing population, as well as buildout population projections, are critical assumptions used to calculate the Government Building Facilities Fee. The following resources were used as part of this analysis:

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Government Building Facilities Fee Nexus Study 14 August 2024 City of Manteca
• Estimates of population projections and total development through buildout were based on the City’s General Plan (including Amendment revisions), Revised Addendum to the General Plan EIR (prepared by De Novo Planning Group), and persons per household assumptions.
• Estimated persons per household data were based on the 2022 US Census American Community Survey.
• Existing population estimates are from the 2024 California Department of Finance. • Existing worker estimates are from the United States Census On the Map Database. • Worker projections were based on the employment density per worker identified in the U.S.

Green Building Council LEED BD+C Default Occupancy Counts, estimates from recently completed master plans for the City of Tracy, industrial building size and number of employees data in the City of Manteca, and Cushman & Wakefield’s article, Why Space Matters, dated June 12, 2018.

SERVICE POPULATION
Table 2-1 identifies the existing service population. Non-residential buildings are typically occupied less than dwelling units, so it is reasonable to assume that average per-worker demand for services is less than average per-resident demand. The 0.37-weighting factor for workers is based upon a 45-hour work week (40 hours of work plus 1 hour lunch break) relative to a resident’s non-working time of 123 hours (168 hours per week less 45 work hours).

Table 2-1: Existing Service Population
Category
Existing
Population
Weighting
Factor3
Service
Population
Residents1
88,633 1.00 88,633
Workers218,723 0.37 6,927
Total Existing Service Population 95,560
Source: City of Manteca; Manteca General Plan, US Censes On The Map. 1 Existing residents is based on the existing units from the City's Amended General Plan (February 2024), prepared by De Novo Planning Group, and persons per household assumptions from the US Census Data Table B25033 & B25024 (2022).

Current residents may differ slightly from the General Plan or Department of Finance based on applicable assumptions necessary for this Nexus Study. 2 Employment data for the City of Manteca derived from the United States Census Bureau's On the Map Database. May differ slightly from the City's 2043 General Plan Amendment (February 2024), prepared by De Novo Planning Group, based on assumptions used in the Nexus Study and the General Plan. 3 Workers are weighted at 0.37 based on a 45 hour work week relative to a resident's time of 123 hours (168 hours per week less 45 work hours).

ATTACHMENT 2
Government Building Facilities Fee Nexus Study 15 August 2024 City of Manteca
Table 2-2 identifies the estimated workers growth at buildout.

Table 2-2: Projected New Employee Growth at Buildout
Demand for services and the associated facilities is based on the City’s future service population, which includes residents and non-residential workers. As stated previously, when calculating the service population for growth, workers were weighted less than residents to reflect the lower service demand of workers. Non-residential workers spend less time in the City and use fewer services, so the demand for City services is considered to be less than that of a resident. Workers are weighted at 0.37 that of a resident based on an average worker utilizing services just 45‐hours a week versus a resident having access to services 168 hours a week.

Land Use
Projected
Growth
Square Feet/
Rooms
Projected
Growth
Workers2
Non-Residential
Commercial 2.00 Employees per 1,000 square feet 4,913,626 9,827 Office 3.33 Employees per 1,000 square feet 1,523,233 5,072 Industrial 1.03 Employees per 1,000 square feet 11,114,869 11,471 Hotel3

0.80 Employees per room 264 211
Subtotal 26,581
1 Density assumptions from the USBGC LEED BD+C: New Construction | v4 - Default Occupancy Counts, recent City of Tracy Master Plans, Cushman & Wakefield: Why Space Matters dated June 12, 2018, and industrial data from the City of Manteca.
2 Projected growth based on the non-residential square feet from the 2043 General Plan Update multiplied by the density assumptions. Projected workers differ from the total in the 2043 General Plan Amendment (February 2024), prepared by De Novo Planning Group by approximately 9,500 based on assumptions used in the Nexus Study and the General Plan. The General Plan number excludes Hotel employees as well.
3 Assumes 1,000 square feet per room on average for additional hotel rooms.

Density Assumption1
ATTACHMENT 2
Government Building Facilities Fee Nexus Study 16 August 2024 City of Manteca
Table 2-3 identifies the estimated population and employee growth at buildout.

Table 2-3: Projected New Population and Employee Growth at Buildout

OCCUPANT DENSITY
Occupant densities ensure a reasonable relationship between the increase in service population and the amount of the fee. Using persons per household (PPH) data for residential units and employment density data for non-residential buildings is a common metric used to establish a reasonable relationship between the demand created by the development project and the fees charged. Developers pay the fee based on the square footage of additional housing units or building square feet of non-residential development, so the fee schedule must convert service population estimates to these measurements of project size. This conversion is done using the average occupant density factors by land use type shown in Table 2-4. The residential density factors were derived from the US Census American Community Survey while the non-residential densities were derived from the U.S. Green Building Council Default Occupancy Counts and recent assumptions from City of Tracy master plans. The average density factors shown in Table 2-4 are used for each land use type.

Land Use
Net Growth
(City Limits) Density
Weighting
Factor1
Future
Service
Population
Growth
Existing
Service
Population
Total
Service
Population
at Buildout
Residential
Single Family 9,799 3.29 1.00 32,258 78,011 110,269
Multi-Family 10,485 2.33 1.00 24,462 10,622 35,084
Subtotal 20,284 56,720 88,633 145,353
Employment
Workers 26,581 1.00 0.37 9,835 6,927 16,763
Total Projected New Service Population 66,555 95,560 162,116 1 Workers are weighted at 0.37 based on a 45 hour work week relative to a resident's time of 123 hours (168 hours per week less 45 work hours).

ATTACHMENT 2
Government Building Facilities Fee Nexus Study 17 August 2024 City of Manteca
Table 2-4: Population and Density Assumptions

AVERAGE UNIT SIZES
To meet AB 602 requirement five (5), that recommends that fees imposed on a housing development project be calculated proportionately to the square footage of proposed units in the development, this Nexus Study calculates a fee per unit and then uses the average unit size for Single Family Residential and Multi-Family Residential based on the estimated average size of recently constructed and planned new development within each land use category in the City to convert to a fee per square foot. The average unit size is based on the livable square footage of the residential units.

Basing the average unit size on livable square footage for all residential units is not only consistent with industry standard for fee calculations, but it also provides a strong nexus between the impact of the unit and the fee amount. A good example of industry standard are school fees in California. In California, school fees are based on assessable space, which means a quantity equal to the area (expressed in square feet) within the perimeter of a residential structure, not including the carport, communal walkway, garage, overhang, patio, enclosed patio, detached accessory structure or similar structure.

Multi-Family Residential projects that include communal spaces (i.e., clubhouse, maintenance facility, gym, etc.) will not be assessed impact fees on such areas as the impact is considered to be captured within the residential fees. Areas that comprise workspace for employees and are accessible by the public will be charged impact fees according to use (i.e., a leasing office would pay office fees). Based on the estimated average size of planned new development within each land use category in the City of Manteca, the average unit sizes shown in Table 2-5 are utilized in this study.

Land Use
Residential 1
Single Family 3.29 Residents per dwelling unit
Multi-Family 2.33 Residents per dwelling unit
Non-Residential 2
Commercial 2.00 Employees per 1,000 square feet
Office 3.33 Employees per 1,000 square feet
Industrial 1.03 Employees per 1,000 square feet
Hotel 0.80 Employees per room
1 Population per Household derived from population and unit data from US Census Data Table B25033 & B25024 (2022).
2 USBGC LEED BD+C: New Construction | v4 - Default Occupancy Counts, recent City of Tracy Master Plans, Cushman & Wakefield: Why Space Matters dated June 12, 2018, and City of Manteca data for industrial buildings.

Population and Density Assumptions
ATTACHMENT 2
Government Building Facilities Fee Nexus Study 18 August 2024 City of Manteca
Table 2-5: Average Unit Sizes
The City will monitor the average size of new housing units in the City on an annual basis and if the average size of units is significantly less than anticipated, the fees will be updated as part of the annual update to reflect this change to ensure the fee program does not fall short. As detailed in the next section, the fee per square foot is calculated by dividing the fee per unit by the average size shown above for each residential unit type. Fees for Multi-Family Residential result in a higher fee per square foot than Single Family Residential due to the higher density of people per square foot of space.

Item Size1
Residential
Single Family 2,400
Multi-Family 1,100
1 Based on the livable area of new construction in the City within the past year and is consistent with other recently constructed and proposed developments in the area.

ATTACHMENT 2
Government Building Facilities Fee Nexus Study 19 August 2024 City of Manteca
Section 3 GOVERNMENT BUILDING FACILITIES FEE

COST SUMMARY AND CIP
The original Government Building Facilities Fee Nexus Study, adopted in 2006, identified $107.6 million of CIP in new construction projects that are needed to be built to serve the City of Manteca at buildout. The updated fee program reviewed the facilities needed, sizes of the facilities, and updated the costs. The animal control facility is now excluded, and the police station square footage has been increased based on a needs analysis. We reviewed comparable costs in the region as well as escalating the 2006 costs to 2024 values to estimate an average cost per square foot for the facilities. The updated total costs of these City assets are approximately $229 million. These costs are shown in Table 3-1 on the following page.

ATTACHMENT 2
Government Building Facilities Fee Nexus Study 20 August 2024 City of Manteca
Table 3-1: Government Building Facilities Planned Facilities Table A-1 in Appendix A will also serve as the Government Building Facilities Fee CIP list as required by AB 602, which includes the facilities shown in Table 3-1. The table identifies each of the facilities that will be paid for in part or whole by the Government Building Facilities Fee. The table does not identify the estimated start date of construction. The exact start date is difficult to Square
Feet
(2006)
Updated
Square
Feet
(Buildout)
Original
Cost Estimate
(2006$)
Updated
Cost per
Square Foot1
Updated
Cost Estimate
(2024$)
City Administrative Space
Civic Center - City Hall 71,500 71,500 $28,500,000 $820 $58,630,000 Subtotal 71,500 71,500 $28,500,000 $58,630,000
Community Facilities / Civic Space
Performing Arts Center 37,000 37,000 $14,800,000 $721 $26,677,000 Library 55,000 55,000 $33,000,000 $1,195 $65,725,000
Multi-Use Community Facility 0 32,000 n/a $850 $27,200,000 Animal Shelter Expansion 0 8,000 n/a $800 $6,400,000
Animal Control Facility 6,600 0 1,500,000 - -
Subtotal 98,600 132,000 $49,300,000 $126,002,000
Police Facility Space
Police Station2
37,200 45,570 $20,700,000 $1,232 $56,157,791
Public Safety Training Facility3
0 6,000 n/a $600 $3,600,000
Police Range 17,500 17,500 $4,300,000 $530 $9,275,000
Subtotal 54,700 69,070 $25,000,000 $69,032,791
Maintenance / Storage / Corporation Yard Space
Park and Public Works Corporation Yard4
22,800 22,800 $2,200,000 $236 $5,380,800
Additional Maintenance Facilities 45,000 45,000 3,195,000 $125 $5,625,000 Parks Satellite Corporation Yard 3,000 3,000 1,000,000 $585 $1,755,000 Subtotal 70,800 70,800 $6,395,000 $12,760,800
Total 295,600 343,370 $109,195,000 $266,425,591
Source: City of Manteca Government Building Facilities Fee Nexus Study (2006) and City of Manteca. 1 City Admin, community facilities / civic space, and police facilities are based on an average of the increased cost per square foot based on the Engineering News Record (ENR) 20-City Construction Cost Index (CCI) , April 2006 to April 2024 and comparable costs in the region.
2 Original square footage is shown. Updated 2024 costs are based on the recent police needs analyses square footage of 45,570.

Cost analysis completed by LDA Partners, to be approved by City Council on August 20, 2024. 3 The total square footage of the Public Safety Training Facility is 12,000 square feet. 50 percent of the square footage and cost is allocated to the Government Building Facility Fee. The remaining 50 percent is allocated to the Fire Facility Fee. 4 Maintenance / storage / and corporation yard space is based on the rounded increased cost per square foot based on the 20-City ENR CCI, January 2012 to April 2024 and comparable cost in the region. The park and public works corporation yard includes the cost for a corporation yard building in the City.

ATTACHMENT 2
Government Building Facilities Fee Nexus Study 21 August 2024 City of Manteca
determine as revenue collection varies based on the timing of new development moving forward and the timing of securing other funding sources. The City will use the CIP facilities identified here to guide their five-year Capital Improvement Plan budget based upon city need and timing of securing adequate revenue and will update the date in the CIP and the City’s AB 1600 annual and five-year reports.

The current Government Building Facilities existing square feet is shown below. The existing square footage comes from the City’s Statement of Values (March 14, 2024).

The Government Building Facilities Fee is based on the costs of new development’s fair share of the CIP for new construction projects. The calculation for determining the percentage attributable to new development first determines the ratio of the baseline population in the City to the projected New Service Population at buildout. Then, this ratio is applied to the total square footage of the Existing Sq. Ft.

City Administrative Space
Civic Center - City Hall Complex 86,424
Subtotal 86,424
Community Facilities / Civic Space
VFW Hall 3,931
Library 16,313
Animal Control Facility 6,305
Subtotal 26,549
Police Facility Space
Former Police Station 57,000
Police 17,489
Subtotal 74,489
Maintenance / Storage / Corporation Yard Space
Park and Public Works Corporation Yard 32,925
Water Department Facilities 4,281
Subtotal 37,206
Fund Balance
Fund Balance (as of 6/30/2023) - Not including Fire Component Total Existing Facilities 224,668
Source: City of Manteca Statement of Values (June 7th, 2022), Statement of Values (March 14th, 2024), and Unaudited FY23 Balance Sheet.

ATTACHMENT 2
Government Building Facilities Fee Nexus Study 22 August 2024 City of Manteca
needed facility space at buildout for each facility category. The current existing square footage of facility space is then netted out to calculate the Remaining Share of New Square Footage for both the baseline population and the projected new service population. This remaining share is used to calculate the percentage share of buildout square footage that is attributable to new development.

The calculated percentages for each facility category are shown in Table 3-2.

Table 3-2 : Percentage Distribution of New Facility Costs The percentage attributable to new development is then applied to the costs of the facilities. Table 3-3 summarizes the estimated costs for the space needs net of the fund balance, cost attributable to new development, and the remaining City cost for an estimated cost per capita for each component of the Government Building Facilities Fee. The cost per capita employee equivalent is based on the workers being weighted less than residents. Non-resident workers spend less time in the City and use fewer services, so the demand for City services is considered to be less than that of a resident. Workers are weighted at 0.37 that of a resident based on worker utilizing services 45‐hours a week versus a resident having access to services 168 hours a week.

Population Residents
Workers
(Weighted)
Service
Population
Percent of
Population
Total Buildout
Government
Facilities SF
Proportionate
Share of
Buildout SF
Current
Share of
Existing SF
Remaining
Share of
New SF
Percentage
Share of
Buildout SF
City Administrative Space
Baseline Population 88,633 6,927 95,560 59% 157,924 93,090 86,424 6,666 9% Projected New Service Population 56,720 9,835 66,555 41% 157,924 64,834 - 64,834 91% Total City Administrative Space 145,353 16,762 162,115 157,924 71,500 Community Facilities / Civic Space
Baseline Population 88,633 6,927 95,560 59% 158,549 93,458 26,549 66,909 51% Projected New Service Population 56,720 9,835 66,555 41% 158,549 65,091 - 65,091 49% Total Community Facilities / Civic Space 145,353 16,762 162,115 158,549 132,000 Police Facility Space
Baseline Population 88,633 6,927 95,560 59% 143,559 84,622 74,489 10,133 15% Projected New Service Population 56,720 9,835 66,555 41% 143,559 58,937 - 58,937 85% Total Police Facility Space 145,353 16,762 162,115 143,559 69,070 Maintenance / Storage / Corporation Yard Space
Baseline Population 88,633 6,927 95,560 59% 108,006 63,665 37,206 26,459 37% Projected New Service Population 56,720 9,835 66,555 41% 108,006 44,341 - 44,341 63% Total Maintenance / Storage / Corporation Yard Space 145,353 16,762 162,115 108,006 70,800 Total All Facilities 145,353 16,762 162,115 568,038 568,038 224,668 343,370 Existing Development's Share 110,167
New Development's Share 233,203
ATTACHMENT 2
Government Building Facilities Fee Nexus Study 23 August 2024 City of Manteca
Table 3-3: Government Building Facilities Fee Cost per Capita

FEE METHODOLOGY
The Government Building Facilities Fee uses the Planned Facility Method to calculate the fee. As stated in the “Impact Fee Nexus Study Template” prepared for the California Department of Housing and Community Development by Terner Center for Housing Innovation at UC Berkeley, the Planned Facility Method “Estimates the costs for future facilities needed to serve new development based on a long-range expenditure plan for these future facility costs.” The fee is based on new development’s fair share of the costs of the facilities needed at buildout.

The Government Building Facilities Fee is calculated based on the estimated number of new residents and workers that are generated by each new development. Workers are weighted at a lower weight than residents to reflect their lesser impact on the facilities based on the number of hours they spend in the City compared to a resident. This weighting is calculated as resident equivalents.

The total fee program cost shown on Table 3-3 is total future costs to calculate the fee for the fee program, but the total fee revenue available and total cost of the program includes the fee program cost plus the existing fund balance as the fund balance revenue is available to fund the improvements.

Item
City
Administrative
Facilities Space
Community
Facilities/
Civic Space
Police
Facilities
Space
Maintenance/
Storage/
Corporation Yard
Space Total
Total Cost $58,630,000 $126,002,000 $69,032,791 $12,760,800 $266,425,591 Less: Fund Balance 1
($7,129,776) ($15,322,634) ($8,394,821) ($1,551,793) (32,399,024) Subtotal Fee Program Cost $51,500,224 $110,679,366 $60,637,970 $11,209,007 $234,026,567 New Development Proportionate Share2
91% 49% 85% 63%
Total Fee Program Cost $46,699,120 $54,577,511 $51,741,988 $7,020,034 $160,038,653 Additional Service Population 66,555 66,555 66,555 66,555 Cost per Capita $702 $820 $777 $105 $2,404
Cost per Capita - Employee Equivalent 3
$260 $303 $287 $39 $889
Source: City of Manteca Government Building Facilities Fee Nexus Study (2006) and City of Manteca. 1 Estimated fund balance as of 06/30/2024 from the City's Fiscal Year 2024-25 Annual Budget. Fund balance allocated proportionately to each component based on cost.
2 The proportionate share of the Fee Program Cost that is attributable to New Development is calculated on Table 3-2. 3 Workers are weighted at 0.37 based on a 45 hour work week relative to a resident's time of 123 hours (168 hours per week less 45 work hours).

ATTACHMENT 2
Government Building Facilities Fee Nexus Study 24 August 2024 City of Manteca

FEE SUMMARY
The Government Building Facilities Fee is calculated by multiplying the total cost per capita of the needed facilities at buildout by the density assumptions shown in Table 2-3. The Residential Government Building Facilities Fees are then converted into a fee per square foot by dividing the Total Proposed fee per unit by the Average Unit Size assumptions in Table 2-5. Table 3-4 summarizes the Government Building Facilities Fee calculation.

Table 3-4: Government Building Facilities Fee Calculation

EXISTING AND PROPOSED LEVEL OF SERVICE
AB 602 states, “When applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service and include an explanation of why the new level of service is appropriate.”
Table 3-5 shows the Percentage Distribution of New Facility Costs. Table 3-6 identifies the square foot per capita when the fee program began compared to the planned square foot per capita at buildout.

Land Use
City
Administrative
Facilities
Community
Facilities/
Civic Space
Police
Facilities
Maintenance/
Storage/
Corporation
Yard Space
Total Cost
per
Capita Density
Subtotal
Proposed
Fee
Administrative
Fee1
Total
Proposed
Fee
Average
Unit Size
(SF)
Proposed
Fee per
Sq. Ft.

Residential Fee per Sq. Ft.

Fee per Unit
Fee per 1,000 Sq. Ft. / Room
Cost per Capita
ATTACHMENT 2
Government Building Facilities Fee Nexus Study 25 August 2024 City of Manteca
Table 3-5: Existing Government Building Facilities
Table 3-6: Existing Level of Service
The Government Building Facility fee includes the facilities that are needed to serve the City at buildout and calculates the percentage attributable to new development based on new developments’ proportional share of the new facilities. The percentage attributable to new development is then applied to the costs of the facilities. This methodology conservatively ensures Population Residents
Workers
(Weighted)
Service
Population
Percent of
Population
Total Buildout
Government
Facilities SF
Proportionate
Share of
Buildout SF
Current
Share of
Existing SF
Remaining
Share of
New SF
Percentage
Share of
Buildout SF
City Administrative Space
Baseline Population 88,633 6,927 95,560 59% 157,924 93,090 86,424 6,666 9% Projected New Service Population 56,720 9,835 66,555 41% 157,924 64,834 - 64,834 91% Total City Administrative Space 145,353 16,762 162,115 157,924 71,500 Community Facilities / Civic Space
Baseline Population 88,633 6,927 95,560 59% 158,549 93,458 26,549 66,909 51% Projected New Service Population 56,720 9,835 66,555 41% 158,549 65,091 - 65,091 49% Total Community Facilities / Civic Space 145,353 16,762 162,115 158,549 132,000 Police Facility Space
Baseline Population 88,633 6,927 95,560 59% 143,559 84,622 74,489 10,133 15% Projected New Service Population 56,720 9,835 66,555 41% 143,559 58,937 - 58,937 85% Total Police Facility Space 145,353 16,762 162,115 143,559 69,070 Maintenance / Storage / Corporation Yard Space
Baseline Population 88,633 6,927 95,560 59% 108,006 63,665 37,206 26,459 37% Projected New Service Population 56,720 9,835 66,555 41% 108,006 44,341 - 44,341 63% Total Maintenance / Storage / Corporation Yard Space 145,353 16,762 162,115 108,006 70,800 Total All Facilities 145,353 16,762 162,115 568,038 568,038 224,668 343,370 Existing Development's Share 110,167
New Development's Share 233,203
Facility
Existing
Square
Feet
Additional
SF to serve
Buildout
Total New
Level of
Services
New Level
of Services for New
Development
New Level of
Service for
Existing
Population
Total Building Square Feet 224,668 343,370 568,038 233,203 334,835 Population 95,560 162,115 66,555 95,560
Square Feet per Capita 2.35 3.50 3.50 3.50
Source: City of Manteca Government Building Facilities Fee Nexus Study (2006) and City of Manteca.

Projected New Level of Service
ATTACHMENT 2
Government Building Facilities Fee Nexus Study 26 August 2024 City of Manteca
that new development is only funding their proportionate share of the total facilities. As shown in the Nexus Study analysis, based on the square footage per capita of the existing facilities, the level of service per capita for the City’s existing population is slightly lower. The analysis identifies the square foot per capita when the fee program began compared to the planned square foot per capita at buildout. As shown, the level of service that is proposed to serve the population at buildout slightly exceeds the level of service when the program began, but it does maintain a fairly similar level of service of roughly 3.50 square feet per capita compared to the existing level of service amount of 2.35 square feet per capita. This analysis is based on planned facilities and new developments proportional fair share of these planned facilities; therefore, this Nexus Study makes the required nexus findings per AB 602.

Government Code section 66001(g) states, "A fee shall not include the costs attributable to existing deficiencies in public facilities, but may include the costs attributable to the increased demand for public facilities reasonably related to the development project in order to (1) refurbish existing facilities to maintain the existing level of service, or (2) achieve an adopted level of service that is consistent with the general plan." The CIP, which is shown in Appendix A and is proposed to be adopted by the City Council along with the proposed, updated fees, will adopt the new level of service. Furthermore, the new level of service is consistent with the following General Plan policies of the City:
• Goal GM-1: Maintain appropriate growth management measures that ensure a high quality of life, appropriate levels of service, and address anticipated development patterns and timing of public services, facilities, and infrastructure to serve new growth. • GM-1.1: Maintain a Growth Management Program that requires new development to meet and address level of service standards for water, sewer, circulation, schools, parks, public safety, and other necessary services and facilities and demonstrate consistency with the General Plan.

Importantly, as shown in Table 3-6, the new level of service is the same for both existing residents and new development. The City is not requiring new development to build out at a higher level of service than what is being placed on existing residents at Buildout.

AB 602 also states that if a nexus study supports the increase of an existing fee, the city, county, or special district shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee. This Nexus Study includes similar improvements to the nexus study supporting the original fee. The animal control facility that was included in the original nexus study has been removed as that project has been completed. The remaining improvements included in the original analysis are included in this Analysis as they have not yet been constructed because they are large projects that take a lot of planning and funds to complete. The current fund balance of $32.4 million is netted out from the development fee ATTACHMENT 2
Government Building Facilities Fee Nexus Study 27 August 2024 City of Manteca
calculation but is available for funding these facilities as well. The nexus study that supported the existing fee was completed in 2006. Construction costs have increased significantly since 2006 and therefore the fee program was updated to accurately represent the cost of construction, updated assumptions, and meet updated legal requirements. Given the increase in construction cost, additional funds are necessary to cover new development’s fair share of these facilities.

REVENUE PROJECTTIONS
Table 3-7 summarizes the anticipated Government Building Facilities Fee revenue. The revenue will be available to build new development or expand the City’s Government Building facilities to meet the needs of new residents and employees. Based on the service population estimates in this Nexus Study, it is anticipated that at Buildout approximately $142.8 million will be collected.

Table 3-7: Government Building Facilities Fee Estimates Revenue at Buildout Land Use
Proposed
Fee1
Anticipated
Growth (units)
Anticipated
Growth
(SF/Rooms)
Anticipated
Fee Collection
at Buildout2
Residential (Fee per Sq. Ft.)
Single Family $3.30 9,799 23,517,600 $77,608,080
Multi Family $5.10 10,485 11,533,500 $58,820,850
Non-Residential (Fee per 1,000 Building Square Feet/Room) Commercial $1,778.00 n/a 4,913,626 $8,736,426
Office $2,960.37 n/a 1,523,233 $4,509,332
Industrial $917.45 n/a 11,114,869 $10,197,336
Hotel $711.20 n/a 264 $187,757
Total $160,059,781
Fund Balance (Estimated - 6/30/24) $32,399,024
Total Revenue Available to Fund Improvements $192,458,805 1 Excludes the administrative portion of the fee.
2 Total fee revenue may differ slightly from cost attributable to fee program due to rounding.

ATTACHMENT 2
Government Building Facilities Fee Nexus Study 28 August 2024 City of Manteca

NEXUS REQUIREMENT SUMMARY
AB 1600 requires that public agencies satisfy five requirements when establishing, increasing, or imposing a fee as a condition of approval of a development project. The required findings are as follows:

Requirement 1: Identify the purpose of the fee.

The purpose of the Government Building Facilities Fee is to fund Government Building Facilities needed to serve new development in the City. In order to accommodate these needs, new facilities will be built, or existing facilities will be expanded. Each new resident and worker creates a demand for additional Government Building Facilities, such as additional space at City Hall, additional police space, community centers, and expansion of the Corporation Yard. These facilities are shown in Table 3-1.

Requirement 2: Identify the use of the fee.

The Government Building Facilities Fee will be used to fund the Government Building Facilities listed in Table 3-1, which may be amended by the City Council pursuant to Government Code section 66002. These projects were identified in the original Government Building Facilities Fee Nexus Study, prepared by ECO:LOGIC and Economic & Planning Systems, Inc. (2006) as the facilities required to mitigate the impact of new development and updated in this analysis based on facility needs.

Requirement 3: Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.

The Government Building Facilities Fee will be used to fund the Government Building Facilities projects listed in Table 3-1 that are necessary to serve the increased residents and workers generated by new development. The Government Building Facilities Fee is calculated based on the number of new residents and workers that are generated by each type of new development. The percentage share attributable to new development is calculated in Table 3-2. The Government Building Facilities Cost per Capita is calculated in Table 3-3 separately for residents and workers to capture the difference in how much these portions of the population will use the Government Building Facilities. The cost per capita is then spread to each land use based on the density factor ensuring a reasonable relationship between the fees use and the type of development project. These calculations are shown in Table 3-4. Non-residential land uses will be charged a fee that is calculated using the employee-equivalent cost per capita as shown in Table 3-4.

ATTACHMENT 2
Government Building Facilities Fee Nexus Study 29 August 2024 City of Manteca
Requirement 4: Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.

Each new development is anticipated to generate either new residents or workers. The addition of these new residents and workers directly creates the need for new Government Building Facilities.

These facilities are necessary in order to maintain the adopted level of service. The Government Building Facilities Fee is based on the number of applicable workers and/or residents each new development is expected to generate, thus ensuring that the need for the facilities is directly related to a particular development’s impact. New workers generate a smaller demand than a resident due to the reduced hours they spend in the City, thus one worker is considered, on average, as equivalent to 0.37 that of a resident. This relationship is calculated in Table 3-3 and Table 3-4.

Requirement 5: Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.

The Government Building Facilities Fee will provide the funding for the required Government Building Facilities that are needed to serve the City at buildout. These facilities and costs are summarized in Table 3-1. The percentage attributable to new development is calculated and shown in Table 3-2, ensuring that new development does not pay more than their fair share of the facilities. The fund balance was also deducted from the total cost to calculate the remaining cost of each facility that is to be funded by the Government Building Facilities fee program. The remaining costs are then spread to each land use as shown in Table 3-4. By calculating the proportion of facilities costs attributable to new development and incorporating the employeeequivalent weighting factor, each new development is only paying for their fair share of the required facilities since the need for the facilities directly correlates to the addition of new residents and workers.

ATTACHMENT 2
Government Building Facilities Fee Nexus Study 30 August 2024 City of Manteca
Section 4 IMPLEMENTATION AND ADMINISTRATION

IMPLEMENTATION
According to the California Government Code, prior to levying a new fee or increasing an existing fee, an agency must hold at least one open and public meeting with a 30-day prior notice. In addition, notice of the time and place of the meeting, including a general explanation of the matter to be considered, and a statement that the data required by this section is available, shall be mailed at least 14 days prior to the meeting to any interested party who files a written request with the local agency for mailed notice of the meeting on new or increased fees or service charges. Any written request for mailed notices shall be valid for one year from the date on which it is filed unless a renewal request is filed. At least ten days prior to this meeting, the agency must make data on infrastructure costs and funding sources available to the public. Notice of the time and place of the meeting and a general explanation of the matter are to be published in accordance with Section 6062a of the Government Code, which states that publication of notice shall occur for ten days in a newspaper regularly published once a week or more. Two publications, with at least five days intervening between the dates of first and last publication not counting such publication dates, are sufficient. The period of notice commences upon the first day of publication and terminates at the end of the tenth day, including therein the first day. The new or increased fees shall be effective no earlier than 60 days following the final action on the adoption or increase of the fees. Following adoption of the fees, the fees and supporting information must be placed on the City’s website.

FEE PROGRAM ADMINISTRATIVE REQUIREMENTS
The Government Code requires the City to report every year and every fifth-year certain financial information regarding the fees. Unless otherwise required by state law, the City must make available, within 180 days after the last day of each fiscal year, the following information from the prior fiscal year:

1. A brief description of the type of fee in the account or fund.

2. The amount of the fee.

3. The beginning and ending balance in the account or fund.

4. The amount of the fee collected and the interest earned.

5. An identification of each public improvement for which fees were expended and the amount of expenditures.

6. An identification of an approximate date by which time construction on the improvement will commence if it is determined that sufficient funds exist to complete the project.

7. An identification of each improvement identified pursuant to requirement #6 listed on a previous report and whether construction began on the approximate date noted within that report. If construction did not commence by the approximate date provided in the previous report, identify the reason for the delay and a revised approximate commencement date.

ATTACHMENT 2
Government Building Facilities Fee Nexus Study 31 August 2024 City of Manteca

8. A description of each interfund transfer or loan made from the account and when it will be repaid.

9. Identification of any refunds made, and the number of persons or entities identified to receive those refunds once it is determined that sufficient monies have been collected to fund all fee related projects.

The City must make this information available for public review and must also present it at the next regularly scheduled public meeting not less than 15 days after this information is made available to the public.

For the fifth fiscal year following the first deposit into the account or fund, and every five years thereafter, the City must make the following findings with respect to any remaining funds in the fee account, regardless of whether those funds are committed or uncommitted:

1. Identify the purpose to which the fee is to be put.

2. Demonstrate a reasonable relationship between the fee and the purpose for which it is charged.

3. Identify all sources and amounts of funding anticipated to complete financing any incomplete improvements.

4. Designate the approximate dates on which funding in item (3) above is expected to be deposited into the fee account.

Unless otherwise required by state law, as with the annual disclosure, the five-year report must be made public within 180 days after the end of the City’s fiscal year and must be reviewed at the next regularly scheduled public meeting.

FEE ADJUSTMENT PROCEDURES
The Government Building Facilities Fee may be adjusted periodically to reflect revised facility requirements, receipt of funding from alternative sources (i.e., state or federal grants), revised facilities or costs, changes in demographics, changes in the average unit square footage, or changes in the land use plan. In addition, the fees will be automatically updated each year on July 1st based on the 20-Cities July ENR CCI. The adjustment shall reflect the change in the Construction Cost Index from July one year to July the following year, and developer shall pay those fees in place at time payment is due. In no event shall the fees be less than in any previous year.

TIMING OF FEE PAYMENT
Fees will be collected at the time the building permit for the project is issued. The fee amount will be equal to the fees in effect at the time a developer/applicant submits a complete and adequate building permit application. All residential projects will pay a fee based on the livable square footage of the residential units. For residential projects that include multiple buildings, fees will be due at the time the building permit is issued for each building. The non-residential communal ATTACHMENT 2
Government Building Facilities Fee Nexus Study 32 August 2024 City of Manteca
portion for high-density residential projects (i.e., clubhouse, maintenance facility, gym, etc.) will not be assessed impact fees as the impact is considered to be captured in the residential fees. Areas that are accessible by the public (i.e., a leasing office) will be charged impact fees according to use.

ADMINISTRATIVE FEE
The City oversees the implementation and administration of the Government Building Facilities Fee, consistent with the requirements of the Mitigation Fee Act. A five percent (5%) Administration Fee is added to fund the costs of the City’s management and ongoing fee administration, collection, and reporting. This includes costs associated with City staff and consultant time, studies, and administration to support the fee. Industry standard ranges from three to six percent (3-6%) of the fee for the administrative component of a development fee program.

The administrative functions include, but are not limited to, the following:
• Annual fee adjustments
• Annual fee reporting
• Additional fee reporting every five years
• Posting of nexus studies and fee schedules on the City’s website • Nexus study updates every eight years (an AB 602 requirement) • Master Plans necessary to support the Nexus study updates • Staff and consultant time related to fee preparation, collection, tracking, and administration
• Staff and consultant time needed to track credits and reimbursements for improvements constructed in the fee program
In addition to the aforementioned administrative activities, the City is responsible for using fee revenues to plan for and construct required capital facilities. The City currently collects a three percent (3%) Administrative Fee, but a five percent (5%) fee is included in this Nexus Study given the additional fee reporting requirements of AB 516, posting of information per AB 1483, Nexus Study updates every eight years per AB 602, and additional staff time to administer this fee program and the potential for a Master Plan in the future to support a Nexus Study update.

CREDITS AND REIMBURSEMENT POLICIES
The City may provide fee credits or reimbursements to developers who dedicate land or construct eligible facilities. Fee credits or reimbursements may be provided up to the cost of the improvement, as shown in this study, subject to periodic inflation adjustments, or the actual cost paid by the developer, whichever is lower. For construction cost overruns, only that amount shown in the study, subject to periodic inflation adjustments, would be credited or reimbursed. The City will evaluate the appropriate fee credit or reimbursement based on the value of the dedication or ATTACHMENT 2
Government Building Facilities Fee Nexus Study 33 August 2024 City of Manteca
improvement. Credits or reimbursements may be repaid based on the priority of the capital improvements, as determined by the City. The City will determine fee credits and reimbursements on a case-by-case basis and possibly through the use of a development agreement.

PROGRAMMING REVENUES WITH THE CIP
The City should maintain its CIP to adequately plan for future infrastructure needs. The CIP should commit all projected fee revenues and fund balances to specific projects that are necessary to serve growth. The CIP provides documentation necessary for the City to hold funds in a project account for longer than five years, if necessary, to collect sufficient funds to complete a project. This report outlines the projects that are to be funded with this fee program and forms the basis of the CIP, as identified in Appendix A.

The CIP is based on several City documents that are identified in the CIP, the City Council Meeting on March 3, 2020, where the City Council identified the facilities needed to support growth, the City’s General Plan, and the City’s current CIP. As stated previously, the cost per square foot is based on an average of the escalated 2006 costs for the facilities and recently constructed facilities or planned costs included in Master Plans for the City of Tracy, the City of Stockton, the City of Cathedral City, and the City of Moorpark. The analysis reviewed the cost per square foot in Tracy for the administration building, community center, library, police station, police training facility, and Boyd service center. In Stockton, the cost per square foot for the library and community center is included. For Cathedral City, the cost per square foot for the civic center, library, police headquarters, and maintenance and operations facility were reviewed. Finally, in Moorpark, the cost per square foot for the city hall, recreation facilities, library, and police services center were used. LDA partners provided an updated 2024 square footage needs and cost analysis for the police station. The park and public works corporation yard includes the cost for a recently constructed corporation yard building in the City. The cost for the multi-use community facility, animal shelter expansion, and public safety facility are based on current cost estimates from the City based on conceptual plans.

FEE REPORTING
Assembly Bill No. 1483, which became effective January 1, 2020, requires that public agencies make the following information available on their website:

1. A current schedule of fees, exactions, and affordability requirements imposed by the city, county, or special district, including any dependent special districts, of the city or county applicable to a proposed housing development project, which shall be presented in a manner that clearly identifies the fees, exactions, and affordability requirements that apply to each parcel.

2. All zoning ordinances and development standards, which shall specify the zoning, design, and development standards that apply to each parcel.

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Government Building Facilities Fee Nexus Study 34 August 2024 City of Manteca

3. The list of information required to be compiled pursuant to Section 65940.

4. The current and five previous annual fee reports, or the current and five previous annual financial reports, which were required pursuant to AB 1600.

5. An archive of impact fee nexus studies, cost of service studies, or equivalent, conducted by the city, county, or special district on or after January 1, 2018.

Any updates to the above information must be available within 30 days.

ACCESSORY DWELLING UNITS
An accessory dwelling unit (ADU) is a second unit that is attached or detached from a singlefamily home. In accordance with Assembly Bill No. 881 approved on October 9, 2019, Government Building Facilities fees will not be charged for an ADU that is less than 750 square feet. For an ADU that is 750 square feet or larger, the ADU will be charged proportionately in relation to the square footage of the primary dwelling unit. Since the residential fees are now being charged on a square footage basis, ADU fees will be calculated by multiplying the Single-Family Residential fee by the ADU’s square footage.

SPECIALIZED DEVELOPMENT PROJECTS
The fees in this report may not apply to specialized development projects, such as golf courses, cemeteries, sports stadium, or other specialized land uses. For specialized development projects the City will review the development’s impacts to determine the applicable fees. The fee rates presented in this Nexus Study may be reduced, exempted, or waived under certain circumstances as determined by the City. Any exemption or reduction in fees will be based on the City’s independent analysis and review of the subject property.

Some developments may include more than one land use type. In these cases, the fee is calculated separately for each land use. The City has the discretion to impose the fees based on the specific aspects of a proposed development regardless of zoning. The fee imposed should be based on the land use type that most closely represents the impacts of the development.

REBUILD OR EXPANSION PROJECTS
For reuse, expansions, density increasing, or rezone projects, the developer shall only be responsible for paying fees for the intensification or expansion. For example, if a homeowner wishes to build an addition to their home that is 100 square feet, the homeowner would be responsible for paying fees for the 100 square foot addition. The City will review the new development’s impacts to determine the applicable fees on a case-by-case basis.

In cases of rebuilding a structure after a demolition, impact fees will not be assessed on the rebuild to the extent that the overall size and use of the new structure is similar to the structure prior to demolition. Similarly, in cases of disaster, impact fees will not be charged on the rebuilding of the ATTACHMENT 2
Government Building Facilities Fee Nexus Study 35 August 2024 City of Manteca
structures that were affected by the disaster to the extent that the overall size and use of the new structure is the same as the structure destroyed by the disaster. Impact fees for the new structure will be calculated based on the new rebuilt structure and the credit for the impact fees in place at that time for the previous structure, and the difference between these fees will be assessed. No refunds will be made for rebuilds that have a lower impact fee than the previous structure.

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Government Building Facilities Fee Nexus Study 36 August 2024 City of Manteca
Appendix A: Capital Improvement Plan

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Government Building Facilities Fee Nexus Study 37 August 2024 City of Manteca
Table A-1: Capital Improvement Plan*
*This CIP represents a level of service of 3.50 Government Buildings square feet per capita.

Facility Square Feet Cost per s.f. Total Cost Location Planned Timing Backup Documentation Civic Center - City Hall 71,500 820 $ 58,630,000 $ 1001 W Center Street Fiscal Year 2028/29 for design, Phase I 2030,
immediately following construction of the Police
Station, Completion by 2035 2020 Space Needs Analysis done by LDA Partners Performing Arts Center 37,000 721 $ 26,677,000 $
Within the Family Entertainment
Zone to be part of upcoming Master Plan Design to start by 2034, Completion by 2038 Conceptual design to be included as part of the updated FEZ Master Plan to occur in FY2025. Facility has been identified as a component of the FEZ in the Master Plan since 2016.

Library 55,000 1,195 $ $ 65,725,000 320 W Center Street Design to start by 2034, Completion by 2038 Based on escalated costs from the 2006 analysis and recently constructed projects.

General Plan EF-4: Promote efforts to provide learning opportunities for all residents by working with San Joaquin County and stakeholders to provide modern library resources and programs.

City of Manteca Council Meeting on March 3, 2020 identifying the facilities needed to support growth.

Multi-Use Community Facility 32,000 850 $ 27,200,000 $ 500-600 Moffat Blvd Design to start 2025/2026 or sooner, Completion
by 2030 Direction from City based on conceptual plans
Animal Shelter Expansion 8,000 800 $ $ 115 E Wetmore Avenue 6,400,000 Design to start 2025/2026 or sooner, Completion
by 2030
Direction from City based on the need to increase the existing Animal Shelter by more than 100% due to number of animals present onsite.

Police Station 45,570 1,232 $ $ 56,157,791 Milo Candini & Wawona RFQ for Design in FY25, Design in 2025, Completion
by 2030
2020 Space Needs Analysis done by LDA Partners and 2024 conceptual design and cost analysis completed by LDA Partners, approved by City Council on August 20, 2024.

Public Safety Training Facility (50%)1
6,000 600 $ 3,600,000 $ Milo Candini & Wawona
Design starting 2029 after completion of the Police
Station, Completion by 2034 Direction from City based on conceptual plans Police Range 17,500 530 $ $ Milo Candini & Wawona 9,275,000 Design in 2030, after Police Station is completed,
Completion by 2035
Based on escalated costs from the 2006 analysis and recently constructed projects.

Park and Public Works Corporation Yard 22,800 236 $ $ 2450 W Yosemite Avenue 5,380,800 Design and construction starting 2032, or sooner,
completion by 2034 CIP 17033 - Public Works Consolidation Project Additional Maintenance Facilities 45,000 125 $ $ 2450 W Yosemite Avenue 5,625,000 Design and construction starting 2032, or sooner,
completion by 2034 CIP 17033 - Public Works Consolidation Project Parks Satellite Corporation Yard 3,000 585 $ $ South of Highway 120 1,755,000 Design and construction starting 2032, or sooner,
completion by 2034
Based on escalated costs from the 2006 analysis and recently constructed projects.

Total 343,370 $ 266,425,591
1 The total square footage of the Public Safety Training Facility is 12,000 square feet. 50 percent of the square footage and cost is allocated to the Government Building Facility Fee. The remaining 50 percent is allocated to the Fire Facility Fee.

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Manteca City CouncilAugust 20, 2024

Manteca City Council
August 20, 2024