1 DEVELOPMENT
IMPACT FEE
NEXUS STUDY UPDATE
GOVERNMENT BUILDING FACILITIES FEE
August 20, 2024
ATTACHMENT 5
2 • Why are impact fees important:
New development pays for their fair share of new infrastructure without burdening existing development. Development impact fees equitably distribute the costs related to new infrastructure to all potential new developments.
Balances fee levels with desired economic growth.
• Why are fees updated/adjusted?
Without an update to old fees and annual adjustments to adopted development impact fees, there would not be adequate funding to support infrastructure for future growth as estimated by the City’s General Plan. Last adopted update in 2006
There have been significant updates in cost, assumptions, and land uses since this update Harris started an update in 2020, but Covid delayed the update Updated analyses and methodology to comply with the legal requirements of the Mitigation Fee Act (AB 1600) and AB 602
DEVELOPMENT IMPACT FEES
OVERVIEW
ATTACHMENT 5
3 Development Impact Fees (DIFs) are fees imposed by a local government on new development projects to ensure public services and infrastructure will be sufficient to serve new development. Governing law for DIFs is Assembly Bill 1600 (Mitigation Fee Act) (GC 66000) Fees are established on new development’s fair share based on a rational nexus test DIFs are a one-time fee on new development to mitigate their impacts Only includes cost attributable to new development
Fees can only fund capital costs
Fees cannot fund existing deficiencies, ongoing maintenance or salaries Funds must be used for the projects for which they were intended AB602 (July 2022) made several amendments to state law to fees and fee studies Encourages Agency to charge fees on residential land uses per square foot Nexus Study must 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 Requires that the Agency includes a Capital Improvement Program (CIP) as part of the Nexus Study Nexus Study updated every 8 years
DEVELOPMENT IMPACT FEES (DIFS)
OVERVIEW
ATTACHMENT 5
4 NEXUS STUDY PURPOSE
• This report updates the Government Building
Facilities Impact Fee for the City of Manteca.
• Satisfy AB 1600 Nexus requirements, AB 602 guidance, 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 establishing and authorizing the collection of the fees.
ATTACHMENT 5
5 • Updated Data: Coordinated with City staff to obtain land use information, list of proposed capital improvements for new development, existing infrastructure/facilities inventory, value of existing facilities and vehicles, and other necessary data. • Land Uses: Updated based on the City’s recently revised General Plan and other land use data sources.
• Updated Methodology: Updated methodology based on AB 602 –
including review of existing level of service, residential fees per square foot, and added a capital improvement plan to the Nexus Study.
• Fee Updates: Reviewed existing fees and how the updated fee compares to fees in surrounding and comparable jurisdictions. • Coordination Meetings: Harris scheduled numerous
teleconferences with various City departments to discuss the facility needs to support new development, updated costs, and fee methodology and key assumptions. City staff reviewed the draft tables and draft Nexus Study.
CITY OF MANTECA: GOVERNMENT
FACILITIES FEE UPDATES
ATTACHMENT 5
6 Residential fees per square foot in order to comply
with AB 602. To yield consistency across fees
assessed on non-residential land uses, nonresidential development fees will continue to be assessed per 1,000 building square foot.
Land use, costs, level of Service, and Planned 3 Facilities Methodology Updates 1 2
CHANGES TO
THE FEE
PROGRAM
Updated the analysis to include a hotel category
and the hotel fee is charged per room.
ATTACHMENT 5
7 CAPITAL IMPROVEMENT PLAN
AS REQUIRED BY AB 602
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 completion of construction
on the Police Station 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 starting 2034 To be included as part of the updated Master Plan, to occur in FY 2025 Library 55,000 1,195 $ $ 65,725,000 320 W Center Street Design starting 2034 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 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 Fiscal Year 2025/26 Direction from City based on conceptional plan Animal Shelter Expansion 8,000 800 $ $ 6,400,000 115 E Wetmore Avenue Design Fiscal Year 2025/26 Direction from City based on conceptional plan Police Station 45,570 1,232 $ $ 56,157,791 Milo Candini & Wawona Fiscal Year 2028/29 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 in 2030 after police station is completed Direction from City based on conceptional plan Police Range 17,500 530 $ $ 9,275,000 Milo Candini & Wawona Design starting 2029 after completion of the Police
Station
Based on escalated costs from the 2006 analysis and recently constructed projects
Park and Public Works Corporation Yard 22,800 236 $ $ 5,380,800 2450 W Yosemite Avenue Design and construction starting 2032 CIP 17033 - Public Works Consolidation Project Additional Maintenance Facilities 45,000 125 $ $ 5,625,000 2450 W Yosemite Avenue Design and construction starting 2032 CIP 17033 - Public Works Consolidation Project Parks Satellite Corporation Yard 3,000 585 $ $ 1,755,000 South of Highway 120 Design and construction starting 2032 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.
ATTACHMENT 5
8 GENERAL GOVERNMENT FACILITIES FEE
MAXIMUM FEE
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
ATTACHMENT 5
9 PROPOSED FEE COMPARISON
Existing Land Use Category New Land Use Category Amount Percent
Change Amount
Percent
Change
Residential per SF
Very Low & Low Density Residential Single Family $2.48 39% 28% Medium Density Residential Single $4.52 -23% -30%
Medium Density Residential Multi-Family $4.52 18% 3%
High Density & Mixed Use Residential Multi-family $4.06 32% 15% Non-Residential (Fee per Square Foot)
Commercial (General, Neighborhood, Mixed Use) Commercial $1.68 $1.87 11% $1.71 2% Heavy Industrial $0.64 51% 50%
Light Industrial $0.87 11% 10%
Business Park Industrial $1.68 85% 32%
Business Professional $2.21 41% 0%
Hotel (Fee per Room)
Hotel1 $630.00 $746.76 19% $746.76 19%
1 Assumes the commercial rate for existing and an average room size of 375 square feet. $2.21
Proposed
Fee
$3.46
$5.35
$3.18
$4.65
$0.96
Existing
Fees
Industrial $0.96
Office $3.11
Maximum
Allowable
(per Nexus
Study)
ATTACHMENT 5
10 FEE COMPARISON TO SURROUNDING JURISDICTIONS
RESIDENTIAL
ATTACHMENT 5
11 FEE COMPARISON TO SURROUNDING JURISDICTIONS
NONRESIDENTIAL
ATTACHMENT 5
12 FEE COMPARISON TO SURROUNDING JURISDICTIONS
NONRESIDENTIAL CONTINUED
ATTACHMENT 5
13 JULY 2024 AUGUST 2024 OCTOBER 2024
• Fees go into effect 60 days after
adoption
DEVELOPMENT IMPACT FEE PROGRAM
FEE ADOPTION SCHEDULE
• Developer Outreach and
City Council Discussions
• Public Hearing
• Fees adopted
ATTACHMENT 5
14 [email protected]
916.306.5704
QUESTIONS? CONTACT US:
THANK YOU
ATTACHMENT 5