1 DEVELOPMENT
IMPACT FEE
NEXUS STUDY UPDATE
GOVERNMENT BUILDING FACILITIES FEE
October 1, 2024
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
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
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.
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
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.
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 construction of the Police
Station, Completion by 2035 2020 Space Needs Analysis done by LDA Partners 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 $ 6,400,000 115 E Wetmore Avenue 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 $ 9,275,000 Milo Candini & Wawona Design in 2030, after Police Station is completed,
Completion by 2035
Based on escalated costs from the 2006 analysis and recently constructed projects.
Parks/Corporation Yard Project2
Park and Public Works Corporation Yard 22,800 $ 236 $ 5,380,800 2450 W Yosemite Avenue Design and construction starting 2032, or sooner,
completion by 2034 CIP 17033 - Public Works Consolidation Project Additional Maintenance Facilities 45,000 $ 125 $ 5,625,000 2450 W Yosemite Avenue Design and construction starting 2032, or sooner,
completion by 2034 CIP 17033 - Public Works Consolidation Project Parks Satellite Corporation Yard 3,000 $ 585 $ 1,755,000 2450 W Yosemite Avenue Design and construction starting 2032, or sooner,
completion by 2034
Based on escalated costs from the 2006 analysis and recently constructed projects.
Total 306,370 $ 239,748,591
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. 2 Based on one project located at 2450 W Yosemite Avenue that will include the three facilities listed. 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 $646 $678 $532 $104 $1,960 3.29 $6,448.40 $322.42 $6,770.82 2,400 $2.82 Multi Family $646 $678 $532 $104 $1,960 2.33 $4,567.00 $228.35 $4,795.35 1,200 $4.00 Non-Residential
Commercial $239 $251 $197 $38 $725 2.00 $1,450.00 $72.50 $1,522.50 - - Office $239 $251 $197 $38 $725 3.33 $2,414.25 $120.71 $2,534.96 - - Industrial $239 $251 $197 $38 $725 1.03 $746.75 $37.34 $784.09 - - Hotel $239 $251 $197 $38 $725 0.80 $580.00 $29.00 $609.00 - - 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
9 PROPOSED FEE COMPARISON
Previous Land Use Proposed
Land Use Fee % Change Fee % Change
Residential
Very Low and Low Density
Residential Single-Family $ 2.48 14% 14%
Single-Family $ 4.14 -32% -32%
Multi-Family $ 4.14 -3% -3%
High Density Residential &
Mixed Use Residential Multi-Family $ 4.06 -1% -1%
Non-Residential
Commercial Commercial $ 1.68 $ 1.52 -9% $ 1.52 -9%
Heavy Industrial Industrial $ 0.64 23% 23%
Light Industrial Industrial $ 0.87 -10% -10%
Business Park Industrial Office $ 1.68 51% 32%
Business Professional Office $ 2.21 15% 0%
Hotel (per room not s.f.) Hotel/Room $630.00 $609.00 -3% $609.00 -3% Average Increase 1%
Government Building Facilities Fee Schedule
Land Use
Medium Density Residential
$ 2.82
$ 4.00
$ 2.82
$ 4.00
$ 0.78
$ 2.53
$ 0.78
$2.21
Existing
Fee
Maximum Allowable
(Per Nexus Study) Proposed
10 FEE COMPARISON TO SURROUNDING JURISDICTIONS
RESIDENTIAL
11 FEE COMPARISON TO SURROUNDING JURISDICTIONS
NONRESIDENTIAL
12 FEE COMPARISON TO SURROUNDING JURISDICTIONS
NONRESIDENTIAL CONTINUED
13 JULY 2024 OCTOBER 2024 DECEMBER 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
14 [email protected]
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