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c�<,FORN'P City Council Staff Report
November 12, 2024
Agenda Item No. 15
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, [email protected]
PREPARED BY: Liz Westmoreland, AICP, Principal Planner - 949-644-3234, [email protected]
TITLE: Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83:
Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program
ABSTRACT:
Development impact fees (DIFs) are one-time charges imposed on new development to fund public infrastructure and services needed to accommodate the increased demand created by new development. Governed by the Mitigation Fee Act, DIFs must demonstrate a clear nexus between the fee amount and the impacts of the development.
The City of Newport Beach contracted with Willdan Financial Services to prepare a Nexus Study, which evaluated potential fees related to recreation, police, fire, water, and sewer facilities.
City staff developed the necessary documentation to implement a DIF program for the City. The proposed program would apply to new residential development planned in the 6t" Cycle Housing Element and new nonresidential development. For nonresidential (commercial, office, and industrial), staff has prepared language that incentivizes neighborhood -serving uses (e.g., grocery stores/retail uses) and tax -generating uses (e.g., visitor accommodations/vehicle sales).
For the City Council's consideration are a resolution to adopt the Nexus Study and corresponding fee schedule, as well as ordinances to establish the DIF Program. If approved, the DIF Program would become effective 60 days after adoption of the resolution.
RECOMMENDATIONS:
a) Conduct a public hearing;
b) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2), 15060(c)(3), 15273, and 15378(b)(4) of the CEQA Guidelines, because this action will not result in a physical change to the environment, directly or indirectly;
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Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
c) Adopt Resolution No. 2024-83, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Development Impact Fee Nexus Study for the City of Newport Beach and Establishing Development Impact Fees for Nonresidential and Residential Development (PA021-127);
d) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-30, An Ordinance of the City Council of the City of Newport Beach, California, Repealing and Replacing Chapter 14.33 (Water and Sewer Capital Improvement Fee) to the Newport Beach Municipal Code Authorizing Collection of Development Impact Fees for Water and Sewer Service Facilities, and pass to second reading on December 10, 2024;
e) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-31, An Ordinance of the City Council of the City of Newport Beach, California, Adding Chapter 15.43 (Recreation Facilities Improvement Fee) to the Newport Beach Municipal Code Authorizing Collection of Development Impact Fees for Recreation Facilities, and pass to second reading on December 10, 2024; and f) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-32, An Ordinance of the City Council of the City of Newport Beach, California, Adding Chapter 15.44 (Public Safety Development Impact Fee) to the Newport Beach Municipal Code Authorizing Collection of Development Impact Fees for Police and Fire Service Facilities, and pass to second reading on December 10, 2024.
DISCUSSION:
A development impact fee is a one-time development exaction that can be used to fund City facilities and infrastructure that serve new development. DIFs cannot be used for new personnel but they can be used to fund capacity enhancing projects including the construction of new facilities, or the purchase of land, equipment, or vehicles. Further, DIFs may only be used for the purpose for which they were collected and must be maintained in separate funds.
Currently, the City charges DIFs for roadway improvements through the Fair Share Traffic Contribution Ordinance; however, there is no comprehensive DIF program in place to support recreation (e.g., community centers), police, fire, or water facilities besides a nominal fee for new sewer connections.
The City also charges in -lieu park dedication fees for new subdivisions (i.e., for -sale residential) through the Quimby Act and Title 19 (Subdivisions) of the Newport Beach Municipal Code (NBMC). In -lieu park dedication fees fund the acquisition of neighborhood and community parkland and recreational facilities serving the identified area of the subdivision that paid the fees. These fees are entirely separate from the proposed Recreation Fee, as they are not authorized through the Mitigation Fee Act and do not fund community centers or other special use facilities. 15-2
Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
Development Agreements
Despite the lack of a DIF program, the City has been able to offset the costs of adequately serving new development through development agreements (DAs). A DA is a contract between the City and a developer that vests development rights in exchange for calculated and/or negotiated public benefits, which can be directed for a specific purpose.
Chapter 15.45 (Development Agreements) of the NBMC requires new residential or nonresidential development that includes a legislative amendment (e.g., a general plan amendment or a zoning code amendment) and any of the following to enter into a DA:
1. Development of 50 or more residential units;
2. Residential units in Mariners' Mile; or
3. Nonresidential development in Newport Center, North Ford Area, or Airport Area.
Certain other projects must also enter into DAs if they are required by the General Plan Policy. Residential or nonresidential development that is not specifically identified by the General Plan Policy or that does not include a legislative amendment does not require a DA.
Implementation of the 6t" Cycle Housing Element
Recent State legislation to streamline housing approvals, including the City's mandatory implementation of its 6t" Cycle Housing Element (Housing Element), will serve to largely eliminate the City's ability to require DAs. Upon implementation of Policy Actions 1A through 1 G in the Housing Element, most residential development will not require a legislative amendment and will be exempt from Chapter 15.45 of the NBMC. However, developers may still apply for voluntary DAs to vest their development rights and to allow development over a longer period of time.
Based on Policy Actions 1A through 1 G, the City recently adopted the zoning necessary to implement the new Housing Element through the creation of NBMC Section 20.28.025 (Housing Opportunity Overlay Zoning District maps) and Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts). Figure 1 below provides an excerpt of HO-1 Airport Environs Area Housing Opportunity Overlay Map showing potential housing sites in the Airport Area. These sites would not require rezoning to implement a housing project. 15-3
Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
Legend
Housing Opportunity sites Overlay (Coastal Zone)
Housing Opportunity sites Overlay
.111111 Coastal Zone Boundary
O60' maximum
O35' maximum
Figure 1, HO-1 Airport Environs Area Housing Opportunity Overlay Map Legislative amendments for nonresidential development are relatively rare in the City.
These amendments may become even more infrequent as nonresidential development intensity starts to become available when it is replaced by new residential development.
For example, in the Airport Area, most of the housing opportunity sites are located on properties with existing office development that could be replaced on or offsite in the future without a legislative amendment pursuant to General Plan Policy LU 4.7 (Redevelopment and Transfer of Development Rights). The City Council will have the authority to transfer this development intensity to other sites within the same statistical area.
This future residential and nonresidential growth will create additional demand on the City's infrastructure (water and sewer) and facilities (recreation, fire, police). The proposed DIF program would be an important and effective tool that the City can use to offset the costs associated with new development.
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Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
At a study session on May 11, 2021, the City Council discussed the issue of DAs losing their viability and identified the need to explore a potential DIF program to help offset the infrastructure needs of new residential development. At the conclusion of the discussion, the City Council directed staff to prepare a nexus study.
In late 2021, the City contracted with Willdan Financial Services (Willdan) to perform the necessary analyses. Willdan and City staff prepared a draft of the nexus study, which evaluates potential fees for recreation, police, fire, sewer, and water facilities.
Mitigation Fee Act
The legal requirements of considering a DIF program are set forth in California Government Code Sections 66000 et. seq., known as the Mitigation Fee Act (MFA). To implement a DIF program, the City must adopt a nexus study that demonstrates a nexus between the impact created by the new development and the amount of the fee relative to the City's planned facilities. The following findings are required per the MFA:
1. Identify the purpose of the fee;
2. Identify how the fee is to be used;
3. Determine how a reasonable relationship exists between the fees' use and the type of development project on which the fee is imposed; and
4. Determine the reasonable relationship between the need for public facilities and the types of development on which the fees are imposed.
Assembly Bill (AB) 602
AB 602 became effective on January 1, 2022, and added Section 66016.5 to the Government Code, which set guidelines for impact nexus fee studies among other things.
In summary, AB 602 required that a nexus study be adopted every eight years and shall include the following components:
1. The existing level of service for each public facility and the proposed new level of service, including an explanation of why the new level of service is appropriate;
2. Fees imposed on a housing development project must be calculated on a per square foot basis; and
3. Large jurisdictions over 250,000 residents are required to adopt a capital improvement plan as part of the nexus study.
Senate Bill (SB) 937
SB 937 was signed by Governor Gavin Newsom on September 19, 2024, and will be effective on January 1, 2025. This bill requires that the payment of DIFs for residential projects be deferred to the certificate of occupancy, rather than the issuance of a building permit. If the developer does not fulfill its obligation to the City, then a lien would be placed on the property.
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Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
Sheetz v. County of El Dorado
In Sheetz v. County of El Dorado, the U.S. Supreme Court held that DIFs are subject to scrutiny under the Taking Clause, by application of a test referred to as "Nollan/Dolan test". Legislatively adopted fees, like DIFs that are authorized through the MFA, were previously considered exempt from this test. The "Nollan/Dolan test" generally requires that exactions have "an essential nexus" to the government's land use interest and must have "rough proportionality" to the development's impact on the land use interest. The Court underscored the necessity for jurisdictions to provide specific evidence that demonstrates how the fees relate to the costs of mitigating development impacts. This ruling reinforces the critical need for development impact fees to comply with essential nexus and rough proportionality requirements ensuring that these fees are transparent, legally defensible, and directly tied to the burdens imposed by new development.
Draft Nexus Study
The MFA grants authority to collect DIFs to local jurisdictions subject to compliance with all requirements summarized in the previous section. The City's Nexus Study was prepared by Willdan and is attached as Exhibit "A" of Attachment A. The Nexus Study provides a basis for the City to charge DIFs and provides the required findings to comply with State law.
To prepare a valid DIF program, the City must consider the growth that may occur within an identified planning timeframe and the scope of public infrastructure improvements that will be required to serve that new development. Establishing a DIF program requires the following steps:
1. Projecting the future growth that will be served;
2. Identifying the current and projected level of service for each public facility;
3. Identifying any additional facilities or improvements that will be needed to accommodate future growth; and
4. Allocating the costs of providing the needed public facilities between the existing and new populations.
While some of the projections and assumptions are highlighted below, the Nexus Study includes a detailed discussion of the methodology used to satisfy these requirements (see pages 5-12 of the study).
The Nexus Study relied on baseline population data from the California Department of Finance. To estimate future residential population growth, the Nexus Study used the dwelling unit projections identified in the Housing Element. The projections identified an increase of 8,741 dwelling units and 14,099 residents. This growth assumption informs the DIFs applied to residential projects.
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Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
For nonresidential (i.e., commercial, office, and industrial) DIFs, the Nexus Study relied on data from the Southern California Association of Governments (SCAG), which projected an increase in employment of 1,500 persons; this equates to a buildout of an additional 629,000 square feet of additional nonresidential construction.
As part of the Nexus Study, the following fee categories were studied:
• Recreation Facilities'
• Police Facilities
• Fire Facilities
• Water Facilities
• Sewer Facilities
The Nexus Study identifies the maximum fees that the City can charge under the MFA.
Staff is recommending that the maximum fees identified in the Nexus Study be adopted, so that any growth will pay its fair share to mitigate the costs of providing additional infrastructure to serve new development. The proposed fee schedule is excerpted below for reference as Table 1. Pursuant to the draft resolution, fees would be established as part of the building permit process and would be due prior to the certificate of occupancy, consistent with SB 937.
Table 1: Proposed DIF Program Schedule
Fee Category
Development Type
Residential
Feel
Commercial
Fee'
Office
Feel
Industrial
Feel
Recreation2
$4.70
-
-
-
Police
$1.01
$0.74
$1.14
$0.40
Fire
$1.73
$1.82
$2.79
$0.99
Water
$0.90
$0.91
$0.62
$0.77
Sewer
$0.56
$0.70
$0.51
$0.49
1. All fees are assessed per square foot of gross floor area.
2. Recreation fees do not apply to nonresidential development, as there is no nexus between nonresidential development and the use of recreational facilities.
The proposed ordinances to implement the fees are included in this staff report as Attachment B (Water and Sewer), Attachment C (Recreation), and Attachment D (Police and Fire). The proposed NBMC sections to implement the police and fire fees have been consolidated within a single NBMC chapter as they are both related to public safety, and water and sewer have been consolidated within a single NBMC chapter as they both relate to utilities.
The proposed fee schedule (Exhibit B of Attachment A) is based on current values. As such, the draft resolution includes an escalator provision to adjust the fees annually for inflation based on the California Construction Cost Index (CCCI). Although the Consumer Price Index (CPI) is a common tool, it tracks the prices of general goods and services where the CCCI is specifically designed to reflect changes in construction costs including materials, labor and equipment.
"Recreation Facilities" do not include land dedicated to parks or other standard park improvements such as restrooms, landscaping, benches, water fountains, drainage devices, etc. The Recreation Facilities fee includes special use facilities such as community centers, senior centers, ocean piers, and other substantial facilities that are not standard to parks. 15-7
Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
City Council Direction and Application of Fees
On August 27, 2024, the City Council held a study session at a noticed public meeting to review the results of the Nexus Study and discuss potential implementation of the DIF program. Two members of the public spoke at the public meeting. No written public correspondence was received prior to the meeting.
The City Council directed staff to reconsider the types of commercial development that would be exempt from the fees as a way to incentivize neighborhood -serving uses that are necessary to support the anticipated residential development identified in the Housing Element. For example, in the Airport Area there are limited neighborhood -serving commercial uses present to support the anticipated residential demand.
The City Council also expressed concerns about applying fees to commercial uses that generate revenue for the City through sales or transit occupancy tax and would likely offset their own costs of service.
At the close of the study session, the City Council directed staff to proceed with the necessary resolution and ordinances to implement the program with modifications to the applicability of fees for certain nonresidential uses. Additional analysis is provided later in this report that addresses the application of fees for nonresidential uses.
The draft resolution specifies how the DIFs would be applied to both residential and nonresidential development and the draft resolution includes additional details regarding administration of the program.
Residential Impact Fees
Residential fees would only apply to new housing projects and subsequent additions on sites that are identified as a Housing Opportunity site in the City's new Housing Opportunity Overlay Zoning Districts (Section 20.28.050 of the NBMC). The fees would also apply to housing projects that are approved through a legislative amendment, such as a general plan amendment. Therefore, if a residential property owner on Balboa Island were to add a new dwelling unit or accessory dwelling unit (ADU) to their property, the fees would not apply since their property is not identified as a housing opportunity site nor are they requesting a zoning code or general plan amendment.
Fees would apply based on the proposed floor area of the housing project including any indoor amenity spaces but excluding parking structures and outdoor space. Fees would not apply to any affordable dwelling units, nor would they apply to ADUs.
Nonresidential Impact Fees
Based on City Council comments, the applicability of fees for nonresidential development has been carefully addressed.
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Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
The draft resolution exempts several classes of commercial development from the DIF Program. DIFs would not apply to retail uses such as grocery stores, eating and drinking establishments, or other neighborhood -serving uses. These uses are exempt because they directly contribute to the establishment and maintenance of a complete residential neighborhood. Other exempt uses include tax-exempt institutional uses such as religious facilities, cultural institutions, or educational uses. Temporary uses, governmental facilities, and tax-exempt social service uses would also be exempt.
Lastly, staff is recommending that certain other uses like vehicle sales and visitor accommodations be exempt as they produce substantial tax benefits that would offset any potential infrastructure impacts.
Credits and Refunds
The draft resolution includes details regarding the application of credits and refunds. In many situations, proposed development would replace an existing use onsite. If a proposed project would replace an existing residential use with another residential use, then the developer would be issued a credit for the existing use. The same would apply to replacement of a nonresidential use. However, when a proposed residential use would replace a nonresidential use, then the developer would not receive a credit. The same would apply to a replacement of residential uses with nonresidential uses. This is reasonable because the existing buildings did not pay into the DIF program.
Additionally, the draft ordinances also allow for developers to receive a credit towards the fee if they are required to construct a public facility that is determined to have sufficient size, length or capacity as determined by the City.
Procedures to Reduce or Waive Fees
If a proposed use is subject to the DIF Program, the developer would have two options to reduce or waive fees.
First, the ordinances include a waiver or reduction process, by which the developer can provide evidence to demonstrate that there is no reasonable relationship or nexus between the fee and the type of facilities to be financed (e.g., fire facilities). Appeals would be subject to review by the City Council.
Second and aside from the prescribed waiver or reduction process, Chapter 20.32 (Density Bonus) of the NBMC provides that certain residential and mixed -use projects that include affordable housing may request a concession or incentive as part of their density bonus application. The developer may use one of their incentives or concessions to waive or reduce the DIFs. Each fee shall require the use of one incentive or concession.
As described in NBMC Section 20.32.070 (Allowed Incentives or Concessions), a waiver or reduction of a fee is at the sole discretion of the City Council and is not a mandatory requirement of State Density Bonus Law.
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Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
Project Case Study
A hypothetical project is analyzed in Table 2, below, to demonstrate how DIFs would apply to a mixed -use project within the new Housing Overlay Zoning District for the Airport Area (HO-1). The hypothetical project includes the demolition of 20,000 square feet of office space and the construction of 81 market rate residential units, 9 affordable residential units, and 4,370 square feet of retail space on the ground floor. The affordable units are assumed to be 1-bedrooms consisting of 850 square feet each.
Table 2: Hypothetical Project Example
Fee Type
Land Use Type
Retail
Residential2Affordable
Units
4,370 s . ft.
104,464 s . ft.
7,650 s . ft. 3
Recreation
-
$490,980
-
Police
-
$105,508
-
Fire
-
$180,722
-
Water
-
$94,017
-
Sewer
-
$58,499
-
Total
$0
$929,726
$0
1. All fees are assessed per square foot of gross floor area.
2. DIFs are assessed on a per square foot basis for all areas of the development that are considered part of the "gross floor area". Gross floor area includes the dwelling units as well as ancillary spaces and rooms such as enclosed amenity spaces, lobbies, clubhouses, utility rooms, and stairs and elevators on the first level. Parking structures, courtyards, balconies, and outdoor spaces would not be included in the fee calculation.
3. Only the gross floor area within the walls of the affordable dwelling unit is exempt from DIFs.
For discussion purposes, if the project included 4,370 square feet of office instead of retail or another exempt nonresidential land use, then the fees for the office component would be imposed in addition to the residential DIF. Because the project includes demolition of an existing office space, credit would have been given in this instance for reconstruction of office space. Credit would have also been given for the proposed retail use described in Table 2; however, the proposed retail space is neighborhood serving and exempt from fees such that no credit was needed. In sum, fee credits would only be issued for replacement of the same type of land use (residential vs. nonresidential).
Comparisons to Other Cities
As part of the Nexus Study analyses, Willdan compared the proposed fees to other jurisdictions. Attachment E (Comparison Survey) of this staff report includes the comparison of the City's fees to other jurisdictions and demonstrates the City's proposed DIF Program is generally consistent with other cities. An example is provided below comparing a hypothetical apartment project consisting of 229 units (Table 3 of Attachment E):
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Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
Table 3: Comparison of Fees for 229 Apartment Project
Table 3: Multifamily Protot pe - 229 Apartments
DRAFT
Newport
Fee Category Beach
Beverly
Hills
Huntington
Beach
Irvine Irvine
Low (High)'
Laguna
Beach
Malibu
San San
Clemente Clemente
Low' (High)2
Santa
Monica
Arlin Public Place53 $
$
$
$ $
$
$
$ $
$ -
Child Care
42,463
General Government
148,429 148,429
-
Fire 337,322
80,116
- -
Infrastructure -
-
4,134,366
Libraries
198,424
-
45,800
Parking'
-
-
-
Parks4 -
2,915,820
723,411
-
1,261,996
Police 196,934
170,944
-
431,180 431,180
-
Recreation 916,425
-
-
- -
Sewer 175,486
485,741
876,383
Storm Drain -
-
-
3,817 184,280
Water 109,191
655,398
1,179,579
722,724 722,724
$
$4,506,443
$2,101,762
$723,411
$1,304,460
Total - per Prototype $1,735,358
$ $4,134,366
$1,306,149 $1,486,612
Irvine hfrostruclure Fees apply only to the "Irvine Business Complex" area' ' San Clemente Storm Drain fees vary by project location, ' FL61ic Art fee assumes that art is Iitled onsite. Parking fee assumes parking is provided onsite. "Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act teas it ieu of parkland dedication are excluded from this table.
Revenue Projections and Use of Fees
The revenue projections for the DIF Program are calculated based on full buildout of the Housing Element for residential impact fees. For nonresidential impact fees, revenue projections are based on the City's anticipated increase in employment population (i.e., an additional 1,500 employees). A detailed discussion of the planned facilities for each fee category and the methodology used to determine the fees are included in the Nexus Study. The City's FY 2024-2025 through FY 2029-2030 Capital Improvement Program (CIP) and 2024 Facilities Financing Plan (FFP) were used to develop the planned facilities lists and anticipated facilities' costs. The anticipated revenue projections and use of those revenues are summarized in Table 4 below for each fee category2.
Table 4: Revenue Projections, Facilities Costs, and Non -Fee Funding Required Fee Category
Cost of Planned
Facilities
DIF Revenue
Non -Fee Funding
Required
Recreation
$72,814,300
$72,814,300
None
Police
$92,400,000
$16,079,000
$76,321,000
Fire
$46,336,175
$28,204,000
$18,132,175
Water
N/A
$14,432,500
N/A
Sewer
N/A
$9,100,600
N/A
Total
$211,550,475
$140,630,400
$94,453,175
The water and sewer DIFs use a different methodology, referred to as the "buy -in" method. This method assumes that the existing infrastructure has been built with excess capacity that new development may buy into. Therefore, no planned facilities are included in the study and these fees may be used for maintenance, repair or construction projects for water or sewer facilities.
2 Fees may only be used for the specific purpose for which they were collected. 15-11
Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
Implementation and Recordkeeping
If the City Council chooses to adopt the resolution and introduce the ordinances, the three ordinances would return for a second reading on December 10, 2024. The DIF Program would then become effective 60-days after adoption of the resolution.
There are several reporting requirements related to DIFs. There is no time limit by which DIF revenue must be spent. However, if the City is accruing DIF revenue to fund new developments' share of a project, then it must make certain findings with respect to unexpended DIF fund balances after five years. These are known as "5-Year Findings" and are critical to the success of the City's DIF Program. The City is also required to provide an annual report regarding collection and use of DIF revenues within 180 days after the last day of each fiscal year. A detailed discussion of the reporting requirements is included in the Nexus Study.
FISCAL IMPACT:
Assuming full buildout of the Housing Element's residential capacity and full buildout of nonresidential development as projected by SCAG, the DIF Program is projected to provide approximately $140,630,400 in funding to support specific City service facilities including recreation, police, fire, water, and sewer facilities. Table 4 (previous page) shows the projected revenue anticipated by the planning timeframe for each fee category and the amount of non -fee funding that the City will be required to allocate towards the planned facilities list to supplement the DIFs. The City would be responsible for identifying approximately $94,453,175 in non-DIF funding to fully fund the planned facilities.
The proposed fee schedule identified in the attached Resolution includes a 2% administrative fee that would fully cover the cost of implementing the development impact fee program. This administrative fee is consistent with other cities and would be reviewed on a yearly basis to ensure that the administrative fee does not exceed the City's costs associated with administering the program.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15378(b)(4), 15061(b)(3), and 15273 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item), and according to the specific regulations set forth in the MFA, as described below.
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Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024
Pursuant to Government Code Section 66016.5, the City published a public notice regarding the adoption of a Nexus Study and Establishment of DIFs in the Daily Pilot on October 12, 2024, at least 30 days prior to holding a public hearing. The Nexus Study was also posted on the City's website and made available in hardcopy format at the City's Central Library, and at the Planning Division for review more than 30 days prior to the public hearing. Additionally, public notice regarding potential adoption of the fee was provided to all interested parties at least 14 days prior to the public hearing pursuant to Government Code Section 66019(b).
A public notice was posted in a newspaper of local circulation 10 days prior to the public hearing in compliance with the Brown Act and Government Code Sections 6066, 66018, and 6062A.
ATTACHMENTS:
Attachment A
— Resolution No. 2024-83: Establishing Development Impact Fee Attachment B
— Ordinance No. 2024-30: Water and Sewer Capital Improvement Fee Attachment C
— Ordinance No. 2024-31: Recreational Facilities Improvement Fee Attachment D
— Ordinance No. 2024-32: Public Safety Development Impact Fee Attachment E
— Comparison Survey
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Attachment A
Resolution No. 2024-83
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RESOLUTION NO. 2024- 83
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADOPTING THE
DEVELOPMENT IMPACT FEE NEXUS STUDY FOR THE
CITY OF NEWPORT BEACH AND ESTABLISHING
DEVELOPMENT IMPACT FEES FOR NONRESIDENTIAL
AND RESIDENTIAL DEVELOPMENT (PA2021-127)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California;
WHEREAS, pursuant to Government Code Section 66000, et seq. ("Mitigation Fee Act"), which governs the establishment of Development Impact Fees ("DIFs"), the City is duly authorized to impose DIFs for purposes of defraying all or a portion of the costs of public facilities related to new development occurring within the City; WHEREAS, pursuant to the Mitigation Fee Act, local agencies are required to make specific findings when imposing fees to mitigate impacts of development projects and ensure the fees are justified and used appropriately; WHEREAS, Newport Beach will continue to experience additional development and expansion based on population and employment growth projections from the Southern California Association of Governments and as identified in the City's General Plan 6tn Cycle Housing Element;
WHEREAS, new development, especially projects involving an addition or a change of use will increase demand for public services and the facilities required to deliver them;
WHEREAS, Assembly Bill 602 ("AB 602") amended the Mitigation Fee Act in 2021 and emphasized the need to adopt a DIF Nexus Study ("Nexus Study") at a public hearing prior to the adoption of any new or increased DIF;
WHEREAS, AB 602 requires in part that the Nexus Study identify the existing level of service for each public facility, identify new levels of service, include an explanation of why the new levels of service are more appropriate, and include information to support the required findings for adoption of new or increased DIFs; 15-15
Resolution No. 2024-
WHEREAS, the City retained the professional services of Willdan Financial Services to prepare the required Nexus Study as set forth in Exhibit "A," which is attached hereto and incorporated herein by reference;
WHEREAS, the Nexus Study provides a quantified basis to support each DIF and the legal support for the required findings to justify the amount of each DIF, based on the level of service of public facilities, and the project burdens on those facilities caused by prospective development in the City;
WHEREAS, the City's Capital Improvement Program for Fiscal Year 2024-25 through 2029-30 and 2024 Facilities Financing Plan indicate the approximate location, size, time of availability, and cost estimates for all facilities or improvements to be financed by the City's DIFs;
WHEREAS, the City Council held a study session on August 27, 2024, allowing an early opportunity for the public to provide input on the Nexus Study's findings and City staffs recommendations on the proposed DIFs; and
WHEREAS, a duly noticed public hearing was held by the City Council on November 12, 2024, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 6000 et seq., California Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and the Mitigation Fee Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:
Section 1: The City Council does hereby adopt the Development Impact Fee Nexus Study and Fiscal Year 2024-25 Development Impact Fee Schedule, both of which are attached hereto as Exhibits "A" and "B," respectively, and incorporated herein by reference.
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Resolution No. 2024-
Section 2: Ordinance Nos. 2024-_, 2024-_, and 2024-_, adopted contemporaneously with this resolution, authorize the City to apply the development impact fees for Recreation, Police, Fire, Water, and Sewer Facilities provided herein.
Additionally, based on the Nexus Study and consistent with the requirements of the Mitigation Fee Act, the City Council does hereby find, as fully set forth in the Nexus Study, the following:
a. That the purpose of the impact fees has been identified; b. That the use of the fees has been identified;
c. That there is a reasonable relationship between the use and the type of project on which it is imposed; and
d. That there is a reasonable relationship between the need for public improvements and the type of project on which it is imposed.
Section 3: The Fiscal Year 2024-25 Development Impact Fee Schedule set forth in Exhibit "B" shall be adjusted annually for inflation based on the California Construction Cost Index ("CCCI") one year after the effective date of this resolution.
Section 4: The Community Development Director or, if appealed, the City Council shall interpret the total amount of the fees owed in accordance with the Fiscal Year 2024-25 Development Impact Fee Schedule set forth in Exhibit "B" and the Development Impact Fee Guidelines which is attached as Exhibit "C," and incorporated herein by reference.
Section 5: The fees identified in the Fiscal Year 2024-25 Development Impact Fee Schedule set forth in Exhibit "B," shall apply to all land use and building permit applications that are not deemed complete by the Community Development Department prior to the effective date of this resolution.
Section 6: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 15-17
Resolution No. 2024-
Section 7: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 8: The City Council finds the introduction and adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
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I;?Me NMel ►150VOYZ!
Section 9: This resolution shall be effective 60 calendar days after its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 12th day of November, 2024.
Will O'Neill
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron Harp
City At orney
Attachments: Exhibit A — Development Impact Fee Nexus Study Exhibit B — Fiscal Year 2024-25 Development Impact Fee Schedule Exhibit C -- Development Impact Fee Guidelines
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Exhibit "A"
Development Impact Fee Nexus Study
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CITY OF N EWPORT BEACH
DEVELOPMENT IMPACT FEE NEXUS STUDY
REVISED FINAL
OCTOBER 22, 2024
Oakland Office
66 Franklin Street
Suite 300
Oakland, CA 94607
TeL (510) 832-0899
*,"W I LLDAN
FINANCIAL SERVICES
Corporate Office
27368 Via Industria
Suite 200
Temecula, CA 92590
Tel: (800) 755-6864
Fax: (888) 326-6864
www.willdan.com
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TABLE OF CONTENTS
EXECUTIVESUMMARY.......................................................................... 1 Background and Study Objectives 1
Facility Standards and Costs 1
Use of Fee Revenues 2
Development Impact Fee Schedule Summary 2
1. INTRODUCTION........................................................................... 4 Public Facilities Financing in California 4
Study Objectives 4
Fee Program Maintenance 5
Study Methodology 5
Types of Facility Standards 5
New Development Facility Needs and Costs 6
Organization of the Report 7
2. GROWTH FORECASTS................................................................. S Land Use Types
8 Impact Fees for Accessory Dwelling Units
8 Existing and Future Development
9 Occupant Densities
10 Land Value Assumptions
11 3. RECREATION FACILITIES............................................................ 13 Service Population
13 Existing Facilities Inventory
13 Preliminary Planned Facilities
15 Cost Allocation
15 Existing Level of Service
15 Future Level of Serv'ce
15 Fee Revenue Projection
16 Fee Schedule
16 Mitigation Fee Act Findings
17 Purpose of Fee
17 Use of Fee Revenues
17 Benefit Relationship
17 Burden Relationship
18 Proportionality
18 4. POLICE FACILITIES.................................................................... 19 Service Population
19 Existing Facility Inventory
20 Preliminarily Planned Facilities
20 Cost Allocation
21 Existing Level of Service
21 r
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City of Newport Beach Development Impact Fee Nexus Study Future Level of Service
21 Fee Revenue Projection
22 Fee Schedule
22 Mitigation Fee Act Findings
23 Purpose of Fee
23 Use of Fee Revenues
23 Benefit Relationship
24 Burden Relationship
24 Proportionality
24 5. FIRE/LIFE SAFETY FACILITIES.................................................... 26 Service Population
26 Existing Facility Inventory
27 Planned Facilities
28 Cost Allocation
28 Existing Level of Service
28 Future Level of Service
28 Fee Revenue Projection
29 Fee Schedule
29 Mitigation Fee Act Findings
30 Purpose of Fee
30 Use of Fee Revenues
30 Benefit Relationship
31 Burden Relationship
31 Proportionality
31 6.
WATER CAPACITY..................................................................... 33 Water Demand
33 Current Water System Asset Valuation
33 Fee per Gallon per Day
34 Fee Schedule
35 7.
SEWER CAPACITY..................................................................... 36 Sewer Demand
36 Current Sewer System Asset Valuation
36 Fee per Gallon per Day
37 Fee Schedule
37 8.
AB 602 REQUIREMENTS............................................................ 39 Compliance with AB 602
39 66016.5. (a) (2) - Level of Service
39 66016.5. (a) (4) — Review of Original Fee Assumptions 39 6016.5. (a) (5) -- Residential Fees per Square Foot
39 66016.5. (a) (6) — Capital Improvement Plan
39 9.
IMPLEMENTATION...................................................................... 41 Impact Fee Program Adoption Process
41 Inflation Adjustment
41 Reporting Requirements
41 %W I LLDAN r►
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City of Newport Beach Development Impact Fee Nexus Study Programming Revenues and Projects with the CIP 44
APPENDIX......................................................................................... 45
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Executive Summary
This report summarizes an analysis of development impact fees needed to support future development in the City of Newport Beach through calendar year 2045. It is the City's intent that the costs representing future development's share of public facilities and capital improvements be imposed on that development in the form of a development impact fee, also known as a public facilities fee. The public facilities and improvements included in this analysis are divided into the fee categories listed below:
Recreation Facilities ■ Water Capacity
Police Facilities Sewer Capacity
Fire/Life Safety Facilities
Background and Study Objectives
The primary policy objective of a development impact fee program is to ensure that new development pays the capital costs associated with growth. Although growth also imposes operating costs, there is not a similar system to generate revenue from new development for services. The primary purpose of this report is to calculate and present fees that will enable the City to expand its inventory of public facilities, as new development creates increases in service demands.
If adopted, the City would collect public facilities fees under authority granted by the Mitigation Fee Act (the Act), contained in California Government Code Sections 66000 et seq. This report provides the necessary findings required by the Act for adoption of the fees presented in the fee schedules contained herein.
If the City adopts impact fees, it should program development impact fee funding to specific capital projects through its Capital improvement Program (CIP). Using a CIP would allow the City to identify and direct its fee revenue to public facilities projects that will accommodate future growth. By programming fee revenues to specific capital projects, the City can help ensure a reasonable relationship between new development and the use of fee revenues as required by the Act.
Facility Standards and Costs
There are several approaches to calculate facilities standards and allocate the costs of planned facilities to accommodate growth in compliance with the Act requirements in this study.
The system plan approach is based on a master facility plan in situations where the needed facilities serve both existing and new development. This approach allocates existing and planned facilities across existing and new development to determine new development's fair share of facility needs. This approach is used when it is not possible to differentiate the benefits of new facilities between new and existing development. Often the system plan is based on increasing facility standards, so the City must find non -impact fee revenue sources to fund existing development's fair share of planned facilities. This approach is used for the police and fire/life safety facility fees in this report.
The planned facilities approach allocates costs based on the ratio of planned public facilities that are necessitated by the increase in demand associated with new development. This approach is appropriate when specific planned facilities that only benefit new development can be identified, or when the specific share of facilities benefiting new development can be identified.
This approach is used for the recreation facilities fees in this report.
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City of Newport Beach Development Impact Fes Nexus Study The buy -in method is typically used when the existing system has sufficient capacity to serve new development, now and into the future. Under the buy -in methodology, new development "buys" a proportionate share of existing capacity at the current value of the existing facilities. This approach is typically used for utility fees, where existing facilities are built with excess capacity to serve future development. This approach is used for the water and sewer capacity charges in this report.
The existing inventory approach is based on a facility standard derived from the City's existing level of facilities and existing demand for services. This approach results in no facility deficiencies attributable to existing development. While preliminary facilities to accommodate growth are identified in this report, facilities to serve growth will be programmed through the City's annual CIP and .budget process and/or completion of a new facility financial plan. This approach is not used in this report, though the existing level of service is identified as appropriate to comply with provisions of AS 602.
= w..., * . ...
Impact fee revenue must be spent on new facilities or the expansion of current facilities to serve new development. Facilities can be generally defined as capital acquisition items with a useful life greater than five years. Impact fee revenue can be spent on capital facilities to serve new development, including but not limited to land acquisition, construction of buildings, construction of infrastructure, the acquisition of vehicles or equipment, information technology, software licenses and equipment.
Revenue from the capacity charges for water and sewer facilities can be used to reimburse the City for prior infrastructure investments. Once reimbursed, the City is able to spend fee revenue as it desires.
In that the City cannot predict with certainty how and when development within the City will occur during the planning horizon assumed in this study, the City may need to update and revise the project lists funded by the fees documented in this study. Any substitute projects should be funded within the same facility category, and the substitute projects must still benefit and have a relationship to new development. The City could identify any changes to the projects funded by the impact fees when the CIP is updated. The impact fees could also be updated if significant changes to the projects funded by the fees are anticipated.
Development Impact Fee'Schedule Summary
Table E.1 summarizes the maximum justified development impact fees that meet the City's identified needs and comply with the requirements of the Act.
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City of Newport Beach Development Impact Fee Nexus Study E.1: Maximum Justified Development Impact Fee Schedule
Land Use
Recreation
Facilities
Police
Facilities
Fire/Life
Safety
Facilities
Water Sewer
Capacity Ca a city
Total
Residential - ner Sq.. Ft.
$ 4.70
$ 1.01
$ 1.73
$ 0.90 $
0.56 $ 8.90
Nonresidential - per Sq. Ft.
Commercial
$ -
$ 0.74
$ 1.82
$ 0.91 $
0.70 $ 4.17
Office
-
1.14 2.79
0.62 0.51
5.06 Industrial
-
0.40 0.99
0.77 0.49
2.65 Sources: Tables U, 4.7, 5.7, 6.4, and 7.4.
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1. Introduction
This report presents an analysis of the need for public facilities to accommodate new development in the City of Newport Beach. This chapter provides background for the study and explains the study approach under the following sections:
• Public Facilities Financing in California;
■ Study Objectives;
• Fee Program Maintenance,-
0 Study Methodology; and
• Organization of the Report.
Public Facilities Financing in California
The changing fiscal landscape in California during the past 45 years has steadily undercut the financial capacity of local governments to fund infrastructure. Three dominant trends stand out:
• The passage of a string of tax limitation measures, starting with Proposition 13 in 1978 and continuing through the passage of Proposition 218 in 1996; ■ Declining popular support for bond measures to finance infrastructure for the next generation of residents and businesses; and
■ Steep reductions in federal and state assistance.
Faced with these trends, many cities and counties have had to adopt a policy of "growth pays its own way." This policy shifts the burden of funding infrastructure expansion from existing ratepayers and taxpayers onto new development. This funding shift has been accomplished primarily through the imposition of assessments, special taxes, and development impact fees also known as public facilities fees. Assessments and special taxes require the approval of property owners and are appropriate when the funded facilities are directly related to the developing property. Development impact fees, on the other hand, are an appropriate funding source for facilities that benefit all development jurisdiction -wide. Development impact fees need only a majority vote of the legislative body for adoption.
Study Objectives
The primary policy objective of a public facilities fee program is to ensure that new development pays the capital costs associated with growth. The primary purpose of this report is to establish development impact fees for the City of Newport Beach based on the most current available facility plans and growth projections. The maximum justified fees will enable the City to expand its inventory of public facilities as new development leads to increases in service demands.
If adopted, the City would collect public facilities fees under authority granted by the Mitigation Fee Act (the Act), contained in California Government Code Sections 66000 et seq. This report provides the necessary findings required by the Act for adoption of the fees outlined in the fee schedules presented in this report.
The City of Newport Beach is forecast to see moderate growth through this study's planning horizon of 2045. This growth will create an increase in demand for public services and the facilities required to deliver them. Given the revenue challenges described above, Newport Beach has decided to investigate use of a development impact fee program to ensure that new development funds its share of facility costs associated with growth. This report makes use of the *�WILLDAN
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of Newport Beach Development Impact Fee Nexus Study
most current available growth forecasts and facility plans to calculate impact fees to fund facility needs resulting from demand from new development.
Fee Program Maintenance
Once a fee program has been adopted it must be properly maintained to ensure that the revenue collected adequately funds the facilities needed by new development. To avoid collecting inadequate revenue, the inventories of existing facilities and costs for planned facilities must be updated periodically for inflation, and the fees recalculated to reflect the higher costs. The use of established indices such as the Califomia Construction Cost Index, are necessary to accurately adjust the impact fees. See Chapter 9 for a discussion of best practices for inflation adjustments.
While fee updates using inflation indices are appropriate for annual or periodic updates to ensure that fee revenues keep up with increases in the costs of public facilities, it is recommended to conduct more extensive updates of the fee documentation and calculation (such as this study) when significant new data on growth forecasts and/or facility plans become available. For further detail on fee program implementation, see Chapter 9.
Study Methodology
Development impact fees are calculated to fund the cost of facilities required to accommodate growth. The six steps followed in this development impact fee study include:
1. Estimate existing development and future growth: Identify a base year for existing development and a growth forecast that reflects increased demand for public facilities;
2. Identify facility standards: Determine the facility standards used to plan for new and expanded facilities;
3. Determine facilities required to serve new development: Estimate the total amount of planned facilities, and identify the share required to accommodate new development;
4. Determine the cost of facilities required to serve new development: Estimate the total amount and the share of the cost of planned facilities required to accommodate new development;
5. Calculate fee schedule: Allocate facilities costs per unit of new development to calculate the development impact fee schedule; and
6. Identify alternative funding requirements: Determine if any non -fee funding is required to complete projects.
The key public policy issue in development impact fee studies is the identification of facility standards (step #2, above). Facility standards document a reasonable relationship between new development and the need for new facilities. Standards ensure that new development does not fund deficiencies associated with existing development.
Types of Facility Standards
There are three separate components of facility standards:
■ Demand standards determine the amount of facilities required to accommodate growth, for example, park acres per thousand residents, square feet of library space per capita, or gallons of water per day. Demand standards may also reflect a level of service such as the vehicle volume -to -capacity (V/C) ratio used in traffic planning. ■ Design standards determine how a facility should be designed to meet expected demand, for example, park improvement requirements and technology infrastructure
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City of Newport Beach Development Impact Fee Nexus Study for City office space. Design standards are typically not explicitly evaluated as part of an impact fee analysis but can have a significant impact on the cost of facilities. Our approach incorporates the cost of planned facilities built to satisfy the City's facility design standards.
Cost standards are an alternate method for determining the amount of facilities required to accommodate growth based on facility costs per unit of demand. Cost standards are useful when demand standards were not explicitly developed for the facility planning process. Cost standards also enable different types of facilities to be analyzed based on a single measure (cost or value) and are useful when different facilities are funded by a single fee program. Examples include facility costs per capita, cost per vehicle trip, or cost per gallon of water per day.
New Development Facility Needs and Costs
A number of approaches are used to identify facility needs and costs to serve new development.
This is often a two-step process: (1) identify total facility needs, and (2) allocate to new development its fair share of those needs.
There are several methods for determining new development's fair share of planned facilities costs: the system plan method, the planned facilities method, the buy -in method and the existing inventory method. The formula used by each approach and the advantages and disadvantages of each method is summarized below:
System Plan Method
This method calculates the fee based on the value of existing facilities plus the cost of planned facilities, divided by demand from existing plus new development:
Value of Existing Facilities + Cost of Planned Facilities Existing + New Development Demand = $/unit of demand
This method is useful when planned facilities need to be analyzed as part of a system that benefits both existing and new development. It is difficult, for example, to allocate a new fire station solely to new development when that station will operate as part of an integrated system of fire stations that together achieve the desired level of service.
The system plan method ensures that new development does not pay for existing deficiencies.
Often facility standards based on policies such as those found in General Plans are higher than the existing facility standards. This method enables the calculation of the existing deficiency required to bring existing development up to the policy -based standard. The local agency must secure non -fee funding for that portion of planned facilities required to correct the deficiency to ensure that new development receives the level of service funded by the impact fee. This approach is used for the police and fire/life safety facility fees in this report.
Planned Facilities Method
The planned facilities method allocates costs based on the ratio of planned facility costs to demand from new development as follows:
Cost of Planned Facilities
New Development Demand cost per unit of demand
This method is appropriate when planned facilities will entirely serve new development, or when a fair share allocation of planned facilities to new development can be estimated. An example of the former is a wastewater trunk line extension to a previously undeveloped area. An example of the latter its when the identified planned facilities represent a lower level of service that currently exists, so new development can fully fund the identified planned facilities. This approach is used to calculate the recreation facility fees in this report. *" VlLLDAN
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City of Newport Beach Development impact Fee Nexus Study Buy In Method
The buy -in method is based on the value of the existing system's capacity. This method is typically used when the existing system has sufficient capacity to serve new development now and into the future. Under the buy -in methodology, new development "buys" a proportionate share of existing capacity at the current value of the existing facilities.
The buy -in fee is determined by taking the current value of assets (replacement cost new, less depreciation) divided by the current capacity provided by the system. Responsibility for new capital improvements is then shared equally by all customers. A simplified version of the calculation equation is:
Present Value of Existing Facilities
Existing System Capacity
= cost per unit of demand
This approach is typically used for utility fees, where existing facilities are built with excess capacity to serve future development. This approach is used for the water and sewer capacity fees in this report.
Existing Inventory Method
The existing inventory method allocates costs based on the ratio of existing facilities to demand from existing development as follows:
Current Value of Existing Facilities
Existing Development Demand
= cost per unit of demand
Under this method new development will fund the expansion of facilities at the same standard currently serving existing development. The existing inventory method results in no facility deficiencies attributable to existing development. This method is often used when a long-range plan for new facilities is not available. Future facilities to serve growth are identified through an annual CIP and budget process, possibly after completion of a new facility financing plan. This approach is not used in this report, though the existing level of service is identified as appropriate to comply with provisions of AB 602.
r r�URI= �
The determination of a public facilities fee begins with the selection of a planning horizon and development of growth projections for population and employment. These projections are used throughout the analysis of different facility categories and are summarized in Chapter 2.
Chapters 3 through 7 identify facility standards and planned facilities, allocate the cost of planned facilities between new development and other development, and identify the appropriate development impact fee for each of the following facility categories:
Recreation Facilities Water Capacity
Police Facilities Sewer Capacity
Fire/Life Safety Facilities
Chapter 8 describes how this nexus study complies with the requirements of Assembly Bill (AB) 602.
Chapter 9 details the procedures that the City must follow when implementing a development impact fee program. Impact fee program adoption procedures are found in California Government Code Sections 66016 through 66018.
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2. Growth Forecasts
Growth projections are used as indicators of demand to determine facility needs and allocate those needs between existing and new development. This chapter explains the source for the growth projections used in this study based on a 2024 base year and a planning horizon of 2045.
Estimates of existing development and projections of future growth are critical assumptions used throughout this report. These estimates are used as follows:
■ The estimate of existing development in 2024 is used as an indicator of existing facility demand and to determine existing facility standards.
The estimate of total development at the 2045 planning horizon is used as an indicator of future demand to determine total facilities needed to accommodate growth and remedy existing facility deficiencies, if any; and Estimates of growth from 2024 through 2045 are used to (1) allocate facility costs between new development and existing development, and (2) estimate total fee revenues.
The demand for public facilities is based on the service population, dwelling units or nonresidential development creating the need for the facilities.
Land Use Types
To ensure a reasonable relationship between each fee and the type of development paying the fee, growth projections distinguish between different land use types. The land use types for which impact fees have been calculated are defined below.
■ Residential Dwelling Units: All residential dwelling units, including detached and attached one -unit dwellings and all multifamily dwellings including apartments, duplexes and condominiums.
■ Commercial: All commercial, retail, educational, and service development. ■ Office: Ali general, professional, and medical office development. ■ Industrial: All manufacturing, warehouse, distribution, and other industrial development.
Some developments may include more than one land use type, such as a mixed -use development with both residential and commercial uses. In those cases, the facilities fee would be calculated separately for each land use type.
The City has the discretion to determine which land use type best reflects a development project's characteristics for purposes of imposing an impact fee and may adjust fees for special or unique uses to reflect the impact characteristics of the use. If a project results in the intensification of use, at its discretion, the City can charge the project for the difference in fees between the existing low intensity use and the future high intensity use.
Impact Fees for Accessory Dwelling Units
The California State Legislature recently amended requirements on focal agencies for the imposition of development impact fees on accessory dwelling units (ADU) with AB 68 in 2021.
The amendment to California Government Code §65852.2(0(2) stipulates that local agencies may not impose any impact fees on ADU less than 750 square feet. ADU greater than or equal to 750 square feet can be charged impact fees in proportion to the size of the primary dwelling unit.
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City of !Newport Beach Development Impact Fee !Nexus Study Calculating Impact Fees for Accessory ®welling Units
For ADUs greater than or equal to 750 square feet, impact fees can be charged as a percentage of the single-family impact fee. The formula is:
ADU Square Feet
Primary Residence Square Feet x Single Family Impact Fee =ADU Impact Fee In the case of an 800 square foot ADU and a 1,600 square foot primary residence, the impact fees would be 50 percent (800 square feet 1 1,600 square feet = 50%) of the single-family dwelling unit fee.
Existing and Future Development
Table 2.1 shows the estimated number of residents, dwelling units, employees, and building square feet in Newport Beach, both in 2024 and in 2045. The base year estimates of household residents and dwelling units came from the California Department of Finance (DOF). The population projection for 2045 was calculated based on the increase in dwelling units identified in the City's recent Housing Element (excluding development projects in the pipeline) multiplied by estimates of 2.09 residents per single family unit and 1.56 residents per multifamily unit calculated from the latest data from the American Community Survey for Newport Beach. The projection assumes that 90% of future dwelling units will be multifamily units, based on direction from City planning staff.
Base year employees were estimated based on the latest data from the US Census' OnTheMap application and exclude 886 local government (public administration) employees: Local government employees are excluded; it is assumed that local government employees are needed to serve development, as opposed to being the development that must be served. The increase of 1,500 jobs in the City is based on the Southern California Association of Government's (SCAG) SoCal Connect Growth Forecast. The projected proportion of workers by land use is consistent with current estimates. The estimates of non-residential building square feet were estimated by dividing employee counts by the occupancy density factors presented in the following table.
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City of Newport Beach Development Impact Fee Nexus Study Table 2,1: Existing and New Development
2024 2045 Increase
Residents 1 82,008 96,107 14,099
Dwelling„ Units 2
Single Family
27,433
28,307
874
Multifamily
17,677
25,544
7,867
Total
45,110
49,001
8,741
Employment a
Commercial
20,458
20,880
422
Office
43,646
44,546
900
Industrial
8,672
8,850
178
Total
72,776
74,276
1,600
Equivalent Building Sauare Feet (OOOs)I
Commercial
9,629
9,828
199
Office
13,408
13,684
276
Industrial
7,488
7,642
154
Total
30,525
31,154
629
` Current household population from California Department of Finance.
Projection for 2045 based on multiplying increase in dw elling units by an assumption of 2.09 residents per single family unit and 1.56 residents per multifamily unit, based on the latest data from the American Community Survey.
2 Current values from California Department of Finance. Increase in total dwelling units based on total potential development capacity of dwelling units of housing need Identif led in the Housing Bement Table 3-37, excluding projects in the pipeline. Assumes 90% of new units w ill be multifamily, based on direction from City staff.
3 Current estimates of primary jobs from the US Census' OnTheMap. Increase of 1,500 jobs based on data from SCAG SoCal Connect 2020 Growth Forecast. Assumes current ratio among land uses w III be maintained. ° Fstlmated building square feet calculated based on employment estimates and density factors in Table 2.2.
Sources: City of Newport Beach 2021-2029 Housing Bement; California Department of Finance, Table E 5, 2024; SCAG SoCal Connect 2020 Growth Forecast Technical Report, September 3, 2020; OnTheKtp Application, http,llonthemap.ces.census.gov; Table 2.2, Willdan Financial Services.
Occupant Densities
All fees in this report are calculated based on dwelling units or building square feet. Occupant density assumptions ensure a reasonable relationship between the size of a development project, the increase in service population associated with the project, and the amount of the fee.
Occupant densities (residents per dwelling unit or workers per building square foot) are the most appropriate characteristics to use for most impact fees. The fee imposed should be based on the land use type that most closely represents the probable occupant density of the development. 10 WI LLDAN
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City of Newport Beach Development Impact Fee Nexus Study The occupancy factors are shown in Table 2.2. The residential density factors are based on data for Newport Beach from the 2022 U.S. Census' American Community Survey. Note that the ratio of single family to multifamily units is projected to change over time. The average residents per dwelling unit for growth projected to 2045 is 1.61 residents per unit and reflects the increasing ratio of multifamily units. The nonresidential occupancy factors are derived from national data from the Institute of Traffic Engineers Trip Generation Manual, 11th Edition.
Table 2.2: Occupant Density Assumptions
Residential 1.61 Residents per dwelling unit'
Nonresidential
Commercial 2.12 Employees per 1,000 square feet
Office 3.26 Employees per 1,000 square feet
Industrial 1.16 Employees per 1,000 square feet
1 Current average density per dwelling unit is 1.89 residents per unit, per ACS data. This w ill change as ratio of single fanfly units to multifamily units decreases. Average residents per dwelling unit for growth projected to 2045 is
1.61 residents per unit.
Sources: U.S. Census Bureau, 2022 American Community Survey 1-Year Estimates, Tables B25024 and B25033 (New port Beach -specific); rrETrip Generation Manual, 11th Edition (national data); Willdan Financial Services.
MR 10 : 0IN
A key assumption in calculating impact fees is the value of land acquisition. Land acquisition costs vary widely in Newport Beach. To more accurately reflect the current cost of land acquisition, City staff prepared estimates of land acquisition costs for three geographical areas of the City, referred to in Table 2.3 as tiers. City GIS staff identified City owned parcels within each tier for use in this analysis. Figure 1 displays a map of the land value tiers.
Table 2.3: Land Value
Area Cost Per Acre
Tier 1 $ 55,669,642
Tier 2 23, 028, 575
Tier 3 11, 324,133
Source: City of Newport Beach.
11 'I-' W I LLDAN
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City of Newport Beach Development Impact Fee Nexus Study Figure 1
r�
" 11µ
C' w u
u •'� • • L2 • ,`
• • w�
6a Will Ha 11 w A \
.. •E. �� YI • ti,
° • rT
Newport Facility Inventory + :� • F, • �' . �
• Community Center 0 FA
. Fire Station • • 3 �, 1
a
Parks `
a •
TIER 1 •
TIER I
TIER 3
92 W"W I LLQAN
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3. Recreation Facilities
The purpose of this fee is to ensure that new development funds its fair share of recreation facilities. A fee schedule is presented based on the planned facilities standard of recreation facilities per capita.
Service Population
Recreation facilities in Newport Beach primarily serve residents. Therefore, demand for services and associated facilities is based on the City's residential population. Table 3.1 shows the existing and future projected service population for recreation facilities.
Table 3.1: Recreation Facilities
Service Population
Residents
Existing (2024) 82,008
New Development (2024-2045) 14,099
Total (2045) 96,107
Source: Table 2.1.
Existing Facilities Inventory
The City's recreation facilities inventory is comprised of various community centers, senior centers, junior lifeguard facilities and harbor facilities. The replacement cost of the buildings was identified in the City's facilities planning documents. The assumed land costs were provided by the City for use in this analysis and vary by geographic area of the City. Replacement costs per square foot for existing buildings were identified in the City's Facilities Financial Plan (FFP). The replacement cost of existing recreation facilities that will be replaced by the planned facilities is excluded from the inventory. In total the City owns $438.8 million worth of recreation facilities.
The recreation facilities inventory is displayed in Table 3.2. 13 �W I LLDAN
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City of Newport Beach Development Impact Fee Nexus Study Table 3.2: Existing Recreation Facilities Inventory
Replacement
Facillty Amount Units Unit cost Cost
Land
Oasis Senior Citizens Center
4.92 acres
$ 23,028,575
$ 113,252,475
Newport Coast Community Center
3.06 acres
55,669,642
170,512,612
Theater Arts Center
0.10 acres
23,028,575
2,302,858
West Newport Community Center
0.82 acres
23,028,576
18,792,797
Subtotal
8.90 acres
$ 304,860,742
Buildings
Bonita Creek Park Community Center
2,876
sq. ft. $
850
$
2,444,600
Carroll Beek Community Center
1,500
sq. ft.
-
-
Junior Lifeguard Building
5,400
sq. ft.
850
4,590,000
Oasis Senior Citizens Center
43,232
sq. ft.
850
36,747,200
Cliff Dr Community Center
761
sq. ft.
850
646,850
Mariners Park Youth Center
1,820
sq. it.
850
1,647,000
Grant Howald Community Youth Center'
5,146
sq, ft.
-
-
Newport Coast Community Center
16,865
sq. ft.
850
14,335,250
West Newport Community Center
11,980
sq. ft.
850
10,183,000
Theater Arts Center'
7,947
sq. ft.
-
-
Subtotal
97,527
sq. ft.
$
70,493,900
Harbor Facilities
^
Marina Park Recreation Facilities, Offices
and Class Rooms
6,500
sq, ft. $
3,846
$
25,000,000
Lighthouse Restaurant
2,600
sq. ft.
850
2,125, 000
Sailing Center
3,000
sq. ft.
850
2,550,000
Harbor Department Offices
1,000
sq. ft.
850
850,000
Marina Park Building
24,390
sq. ft.
850
20,731,500
Marina Park marina — 23 slips
23 slips
86,957
2,000,000
Balboa Yacht Basin --172 slips
172
slips
40,698
7,000,000
Subtotal
$
60,256,500
Vessels Lee Appendix Table A.7)_
Recreation Vessels
$
2,592,976
Harbor uessels
550,000
Subtotal
$
3,142,976
Total
$
438,754,118
No value is shown for these facilities because they will be replaced by the planned facilities.
Sources: City of Newport Beach; Tables 2.3 and A.1, Willdan Financial Services, 14 WI LLDAN
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City of Newport Beach Development Impact Fee Nexus Study Preliminary Planned Facilities
The City preliminarily plans to construct several recreation facilities, including a pool complex, two piers and several improvements to existing community centers. The total cost of the planned facilities is $72.8 million.
Table 3.3: Planned Facilities
Building Square Cost per
Feet Sq. Ft. Total Cost
Pool Complex'
$
15,000,000
Ocean Pier: Newport
20,000,000
Ocean Pier: Balboa
15,000,000
Newport Theatre Arts Center
7,950
900
7,155,000
Community Youth Center (CYC) - Grant Howald
5,658
850
4,809,300
Carroll Beek Center
1,500
1,000
1,500,000
West Newport Community Center
11,000
850
9,350,000
Total
$
72,814,300
' Total estimated cost of this facility is $30 million. $15 million of these costs are assumed to be funded by other sources Source: City of New port Beach.
Cost Allocation
Existing Level of Service
Table 3.4 expresses the City's current recreation facilities level of service in terms of an existing cost per capita, by dividing the replacement cost of the City's existing facilities by the existing service population. This cost per resident is not used in the fee calculation, rather it is shown here for informational purposes only.
Table 3.4: Existing Standard
Value of Existing Facilities $ 438,754,118
Existing Service Population 82,008
Facility Standard per Resident $ 5,350
Sources: Tables 3.1 and 3.2; Willdan Financial Services.
Future Level of Service
Table 3.5 shows new development's cost per capita needed to fully fund the planned facilities.
The level of service indicated by the planned facility standard is lower than the existing standard.
This levO of service drives the fee calculation. This value is calculated by dividing the cost of planned facilities by the increase in population. The resulting cost per capita drives the fee calculation.
15 WILLDAN
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City of Newport Beach Development Impact Fee Nexus Study Table 3.5: Planned Facilities Standard
Cost of Planned Facilities $ 72,814,300
Growth in Senate Population 14.099
Facility Standard per Capita $ 5,164
Sources: Tables 3.1 and 3.3; Willdan Financial Services.
Fee revenue Projection
The City plans to use recreation facilities fee revenue to construct improvements and acquire capital facilities and equipment to add to the system of recreation facilities to serve new development. The City plans to construct the facilities in Table 3.3. By using the planned facilities cost allocation method, the cost of the planned facilities is equal to the projected impact fee revenue for this facility category.
Table 3.6 shows the maximum justified recreation facilities fee schedule. The cost per capita is converted to a fee per unit of new development based on dwelling unit densities (persons per dwelling unit). The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit.
The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting.
In Wilidan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program.
16 1tY< W I f.LDAN
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City of Newport Beach Development Impact Fee Nexus Study Table 3.6: Maximum Justified Recreation Facilities Fee Schedule A B C=AxB D=Cx0.02 E=C+D F=E/Average
Cost Per Admin Fee per
Land Use Capita Density Base Fee' Charge 1,2 Total Fee' S . Ft.
Residential Dmllinn Unit $ 5,164 1.61 1 $ 8,314 $ 166 I $ 8,480 $ 4.70 ' Fee per average sized dwelling unit.
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.
2 Assumes an average of 1,803 square feet per dw elling unit based on an analysis of data for the State of California from the 2019 American Housing Survey.
Sources. Tables 2.2 and 3.5; Willdan Financial Services.
Mitigation Fee Act Findings
The five statutory findings required for adoption of the recreation facilities fees documented in this chapter are presented below and supported in detail by the analysis above. All statutory references are to the Act.
Purpose of Fee
• Identify the purpose of the fee (§66001(a) (1) of the Act).
The recreation facilities fee is designed to ensure that new development will not burden the existing service population with the cost of recreation facilities required to accommodate growth.
The purpose of the fees documented in this chapter is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide recreation facilities to serve new development.
Use of Fee Revenues
+ Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001(a)(2) of the Act).
Recreation facilities fees, if enacted by the City, would be used to fund expanded recreation facilities to serve new development citywide. Facilities funded by these fees are designated to be located within the City limits. A list of planned recreation projects is included in Table 3.3.
Benefit Relationship
• Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001(a)(3) of the Act).
The City will restrict fee revenue to the acquisition of land, construction of facilities and bu"dings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the residents with new development, who represent the demand for recreation facilities. Using the planned facilities cost allocation methodology outlined in Chapter 1, and the cost per capita standard calculated in Table 3.5, the resulting fees ensure that new development will only fund its fair share of improvements at a level of service that is lower than the existing FkA
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City of Newport Beach Dovelopment impact Fee Nexus Study level of service. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential use classification that will pay the fees.
Burden Relationship
+ Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001(a)(4) of the Act).
New residential development will generate additional population growth. An increase in residents will increase the demand for recreation facilities. Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For the recreation facilities fee, demand is measured by a single facility standard (cost per capita) that can be applied to residential development to ensure a reasonable relationship to the type of development. The service population standards are calculated based upon the number of residents associated with residential development.
The standard used to allocate facilities costs to new development is also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population. In this case the planned facilities cost per capita is lower than the existing standard cost per capita, which indicates that new development is not being asked to fund a higher level of service than currently exists in the City.
Proportionality
• Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act).
The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated residential population growth the project will accommodate. Fees for a specific project are based on the project's size. Larger development projects can result in a higher service population resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new development project and the cost of the facilities attributable to that project.
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4. Police Facilities
The purpose of this fee is to ensure that new development funds its fair share of police facilities.
A fee schedule is presented based on the system standard of police facilities in the City of Newport Beach to ensure that new development provides adequate funding to meet its needs.
Service Population
Police facilities serve both residents and businesses. Therefore, demand for services and associated facilities are based on the City's service population including residents and workers.
Table 4.1 shows the existing and future projected service population for police facilities. While specific data is not available to estimate the actual ratio of demand per resident to demand by businesses (per worker) for this service, it is reasonable to assume that demand for these services is less for one employee compared to one resident, because nonresidential buildings are typically occupied less intensiveiy than dwelling units. The 0.31-weighting factor for workers is based on a 40-hour workweek divided by the total number of non -work hours in a week (128) and reflects the degree to which nonresidential development yields a lesser demand for police facilities.
Table 4.1: Police Facilities Service Population
A B
AxB=C
Weighting
Service
Persons Factor
Population
Residents
Existing (2024)
82,008 1.00
82,008
New Development
14,099 1.00
14,099
96,107
Total (2045) 96,107
Workers
Existing (2024)
72,776 0.31
22,561
New Development
1,500 0.31
465
23,026
Total (2045) 74,276
Combined Residents and Wei hied Workers
104,569
Existing (2024)
New Development
14,564
119,133
Total (2045)
' Workers are w eighted at 0.31 of residents based on 40 w ork hours in a week relative to 128 non-w ork hours.
Sources: Table 2.1, Willdan
Financial Services,
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City of Newport ,Beach Development Impact Fee !Nexus Study Existing Facility Inventory
The City's police facilities inventory is comprised of a police station, police vehicles, animal shelter, equipment and a recently purchased building at 1201 Dove Street. The replacement cost of the existing police station is excluded from the inventory, as it will be replaced by the planned facility. In total, the City owns $39.2 million worth of police facilities. Replacement costs per square foot for existing buildings were identified in the City's Facilities Financial Plan (FFP).
Table 4.2 displays the City's existing inventory of police facilities.
Table 4.2: Existing Police Facilities Inventory
Replacement
Quantity Units Unit Cost Cost
Police Station 1
Building
Land
Subtotal
Animal Shelter
Building
Land
Subtotal
1201 Dove Street
Vehicles (Appendix„Table A.2)
60,000 Sq. Ft. $ - $
2.96 Acres -
2,320 S q. Ft. $ 850 $ 1,972,000
0.19 Acres 11,324,133 2,151,586
$ 4,123,585
$ 28, 750, 000
$ 5,748,000
Equipment A endix Table A.2 $ 548,000
Total Cost - Existing Facilities Inventory $ 39,169,585 ' No value is shown for this facility because they will be replaced by the planned facildies.
Sources: Cily of New port Beach; Tables 2.3 and A.2, Willdan Financial Services.
Preliminarily Planned Facilities
Table 4.3 displays the preliminarily planned police facility, which is a new police station estimated to cost $92.4 million. The cost per square foot was identified by the City.
Table 4.3: Planned Police Facilities
Description Quantity Units Unit Cost Total Cost
New Police Station 77,000 Square Feet $ 1,200 $ 92,400,000 Total $ 92, 400, 000
Sources: Cily of New port Beach.
WILLDAN
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City of Newport Beach Development Impact Fee Nexus Study Cost Allocation
Existing Level of Service
Table 4.4 expresses the City's current police facilities level of service in terms of an existing cost per capita, by dividing the replacement cost of the City's existing facilities by the existing service population. The resulting cost per capita drives the fee calculation. The cost per capita is multiplied by the worker weighting factor to determine the cost per worker. This cost per capita standard does not drive the fee calculation and is included to comply with the requirements of AB 602.
Table 4.4: Police Facilities Existinq Standard
Value of Existing Facilities $ 39,169,585
Existing Seance Population 104,569
Cost per Capita
374
Facility Standard per Resident $ 374
Facility Standard per Worker' 115
Based on a weighting factor of 0.31.
Sources: Tables 4.1 and 4.2.
Future Level of Service
Table 4.5 shows new development's projected per capita investment in police facilities at the planning horizon. This value is calculated by dividing the cost of existing and planned facilities by the service population at the planning horizon. This cost per capita drives the fee calculation. 21 WILLDAN
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City of Newport Beach Development Impact Fee Nexus Study Table 4.5: Police Facilities - System Standard
Value of Existing Facilities' $ 39,169,585
Value of Planned Facilities 92,400,000
Total System Value (2045) $ 131,569,585
Future Service Population (204.5) 119,133
Cost per Capita $ 1,104
Facility Standard per Resident $ 1,104
Facility Standard per WorkW 342
Excludes value of existing police building.
z Based on a weighting factor of 0.31.
Sources: Tables 4.1, 4.2 and 4.3.
Fee Revenue Projection
The City plans to use police facilities fee revenue to construct improvements and acquire capital facilities and equipment to add to the system of police facilities which will serve new development.
The City plans to construct the facilities in Table 4.3. Table 4.6 details a projection of fee revenue, based on the service population growth increment identified in Table 4.1. The cost of the planned facilities not funded by fee revenue represents existing development's share of the facilities and must be funded by any revenue source other than impact fees. The facilities identified in Table 4.3 must be constructed by the planning horizon of this study, or new development will have paid too high a fee.
Table 4.6: Revenue Projection - System Standard_
Cost per Capita $ 1,104
Growth in Service Population (2024 - 2045) 14,564
Fee Revenue $ 16,079,000
Net Cost of Planned Facilities $ 92,400,000
Non -Fee Rewnue To Be Identified $ (76,321,000)
Sources: Tables 4.1, 4.3 and 4.4.
Table 4.7 shows the maximum justified police facilities fee schedule. The City can adopt any fee up to this amount. The cost per capita is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per dwelling unit is converted into a fee per 22 W I L.L.DAN
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City of Newport Beach Development Impact Fee Nexus Study square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit.
The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting.
In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program.
Table 4.7: Maximum Justified Police Facilities Fee Schedule A B C=AxB D=Cx0.02 E=C+D F=E/Average
Cost Per Admin Fee per
Land Use Capita Densitv Base Feel Charae1, 2 ITotal Fee 5q. Ft.3 Residential - per Dttiellina $ 1,104 1.61 1 $ 1,777 $
Nonresidential - ner 1, 000 So. Ft.
Commercial $ 342 2.12 $ 727
Office 342 3.26 1,113
Industrial 342 1.16 396
36 $
1,813 $
1.01 15
$
742 $
0.74 22
1,135
1.14 8
404
0.40 ' Fee per dwelling unit or per 1,000 square feet of nonresidential building space. 2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated publtc reporting, and fee justification analyses.
3 Assumes an average of 1,803 square feet per dwelling unit based on an analysis of data for the State of California €romthe 2019 American Housing Survey.
Sources: Tables 2.2 and 4.5.
Mitigation Fee Act Findings
The five statutory findings required for adoption of the police facilities fees documented in this chapter are presented below and supported in detail by the analysis above. All statutory references are to the Act.
Purpose of Fee
0 Identify the purpose of the fee (§66001(a)(1) of the Act).
The police facilities fee is designed to ensure that new development will not burden the existing service population with the cost of police facilities required to accommodate growth. The purpose of the fees documented in this chapter is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide police facilities to serve new development.
Use of Fee Revenues
• Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital 23 W I LLDAN
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City of Newport Beach Development Impact Fee Nexus Study improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001 (a) (2) of the Act).
Police facilities fees, if enacted by the City, would be used to fund expanded police facilities to serve new development citywide. Facilities funded by these fees are designated to be located within the City limits. A list of planned police facilities projects is included in Table 4.3.
Benefit Relationship
• Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001 (a) (3) of the Act).
The City will restrict fee revenue to the acquisition of land, construction of facilities and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the residents and wormers associated with new development, who represent demand for police facilities. Using the system plan standard cost allocation methodology outlined in Chapter 1, and the cost per capita standard calculated in Table 4.5, the resulting fees ensure that new development will only fund its fair share of improvements, and impact fee revenue will not be used to correct existing deficiencies. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential and non-residential use classifications that will pay the fees.
Burden Relationship
• Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001(a)(4) of the Act).
New residential and nonresidential development will generate additional population growth. An increase in residents and workers will increase the demand for police facilities. Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For the police facilities fee, demand is measured by a single facility standard (cost per capita at the planning horizon) that can be applied across land use types to ensure a reasonable relationship to the type of development. The service population standards are calculated based upon the number of residents associated with residential development and the number of workers associated with non-residential development. To calculate a single, per capita standard, one worker is weighted less than one resident based on an analysis of the relative use demand between residential and non-residential development. See the Service Population section above for a discussion of the worker weighting factor.
The standard used to allocate facilities costs to new development is also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population.
Proportionality
• Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act).
The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated residential and nonresidential population growth the development project will accommodate. Fees for a specific project are based on the project's size. Larger development projects can result in a higher service population resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new WILLDAN 24
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City of Newport Beach Development Impact Fee Nexus Study development project and the cost of the facilities attributable to that project. See Table 2.2 for the occupancy density assumptions that drive the proportionality of the fees between the land uses included in this study.
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5. Fire/Life Safety Facilities
The purpose of the fire impact fee is to fund the fire facilities needed to serve new development.
A maximum justified fee schedule is presented based on the system plan standard of fire/life safety facilities per capita.
Service Population
Fire facilities are used to provide services to both residents and businesses. The service population used to determine the demand for fire facilities includes both residents and workers.
Table 5.1 shows the current fire facilities service population and the estimated service population at the planning horizon of 2045.
To calculate the service population for fire/life safety facilities, residents are weighted at 1.00. The use of a worker demand factor of 0.44 for workers in Newport Beach is based on an analysis of fire department call data, categorized by land use, in the City from 2023. Average annual incidents at residential land uses were divided by the residential population to yield an average annual incidents -per -capita factor. Dividing average annual incidents at nonresidential areas by average annual employment in the City yielded a comparable per -capita factor. The ratio of the worker per capita factor to the resident per capita factor is the worker demand factor used in the analysis. See Appendix Table A.3 for a detailed worker weighting analysis.
Table 5.1: Fire Facilities Service Population
A 8 AxB=C
Weighting Service
Persons Factor Ponulation
Residents
Existing (2024)
New Development
Total (2045)
82,008
14,099
96,107
1.00 1.00
82,008
14,099
96,107
Workers 1
Existing (2024)
72,776
0.44 32,021
New Development
1,500
0.44 660
32,681
Total (2045) 74,276
Combined Residents and WeLqhted Workers
Existing (2024) 114,029
New Development 14.759
Total (2045) 128,788
E Workers are weighted at 0.44 of residents based on an analysis of fire department call data from 1/1/2023 To 1213112023. See Appendix Table A.1 for more detail.
Sources: Tables 2.1 and A.3; Willdan Financial Services. 26 W I LLDAN
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City of Newport Beach Development Impact Fee Nexus Study Existing Facility Inventory
Table 5.2 summarizes the City's current inventory of land, apparatus and vehicles. Firetlife safety services are provided from eight stations and two lifeguard facilities located throughout the City.
Replacement costs for existing buildings were identified in the City's Facilities Financial Plan (FFP). In total, the City owns $199.8 million worth of firellife safety facilities.
Table 5.2: Existing Fire Facilities Land and Building Inventory Replacement
Quantity Units Unit Cost Cost
Land
Fire Station #1 1
0.29 Acres
$55,669,642
$ 16,144,196
Fire Station #2
0.41 Acres
55,669,642
22,824,553
Fire Station #32
-
Acres
23,028,575
-
Fire Station #4
0.10 Acres
56,669,642
5,566,964
Fire Station #53
0.36 Acres
23,028,575
8,290,287
Fire Station #6
0.33 Acres
23,028,575
7,599,430
Fire Station #7
1.65 Acres
11,324,133
18,684,819
Fire Station #8
1.09 Acres
55,669,642
60,679,910
Subtotal
4.23 $ 139,790,160
Buildings
Fire Station #14
3,423
Sq. Ft. $
-
$ -
Fire Station #2
11,600
Sq. Ft.
900
10,440,000
Fire Station #34
13,000
Sq. Ft.
-
-
Fire Station #4
4,597
Sq. Ft.
900
4,137,000
Fire Station #5
6,513
Sq. Ft.
900
5,862,000
Fire Station #6
4,436
Sq. Ft.
900
3,992,000
Fire Station #7
11,207
Sq. Ft.
900
10,086,000
Fire Station #8
7,000
Sq. Ft.
900
6,300,000
Lifeguard HQ (Newport Pier)4
2,500
Sq. Ft.
-
-
Lifeguard HQ (CDM)
1,832
Sq. Ft.
900
1,649,000
Subtotal
66,108
$ 42,466,000
Vehicles and Apparatus (AAnandix Table A.4}
$ 17,613,550
Total Cost - Existing Facilities Inventory
$ 199,769,710
' Fire station 1 is co -located with the Balboa Library. Land acreage allocated to each use proportionally based on square footage of each use.
2 Fire station #3 is proposed to be moved to better respond to calls for service from existing and new development. Current site is 3.99 acres and w ill be used for other city purposes. 3 Fire station 5 is co -located with the Corona del Mar Library. Land acreage allocated to each use proportionally based on square footage of each use.
R No value is included for Fire Station #1, #3 and Lifeguard HQ, since they will be replaced by the planned facilities Sources: City of Newport Beach Fire Departmont; Tables 2.3 and A.4, Wilidan Financial Services. 27 jWt YILLDAN
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City of Newport Beach Development Impact Fee Nexus Study Planned Facilities
Table 5.3 summarizes the planned facilities needed to serve the City through 2045, as identified by the City. The City will replace three existing facilities with facilities that expand the City's capacity to serve new development. The new facilities with be strategically located to ensure that the City can maintain its incident response time. In total, the City has identified $46.3 million worth of capacity expanding fire/life safety facilities.
Table 5.3: Planned Fire Facilities
Description Quantitv Units Unit Cost Total Cost
Fire Station No. 1 Replacement
3,423
Sq. Ft.
$ 1,200
$ 4,107,600
Fire Station No. 3 Replacement
13,000
Sq. Ft.
1,200
15,600,000
Fire Station No. 3 Land Acquisition
1 Acres
23,028,575
23,028,575
Lifeguard HQ Replacement
3,000
Sq. Ft.
1,200
3,600,000
Total
$ 46, 336,175
Source: aty of New port Beach.
Cost Allocation
Existing Level of Service
Table 5.4 expresses the City's current fire/life safety facilities level of service in terms of an existing cost per capita, by dividing the replacement cost of the City's existing facilities by the existing service population. The cost per capita is multiplied by the worker weighting factor to determine the cost per worker. This cost per capita standard does not drive the fee calculation and is included to comply with the requirements of AB 602.
Table 5.4: Existinq Level of Service
Value of Existing Facilities $ 199,769,710
Existing Service Population 114,029
Cost per Capita $ 1,751
Facility Standard per Resident $ 1,751
Facility Standard per Worker' 770
Based on a w eighting factor of 0.44,
Sources: Tables 5.1 and 5.2.
Future Level of Service
Table 5.5 shows new development's projected per capita investment in firellife safety facilities at the planning horizon. This value is calculated by dividing the cost of existing and planned facilities by the service population at the planning horizon. This cost per capita drives the fee calculation. -_ 28
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City of Newport Beach Development Impact Fee Nexus Study Table 5.5: System Standard Cost per Capita
Value of Existing Facilities $ 199,769,710
Value of Planned Facilities 46.336.175
Total System Value (2045) $ 246,105,885
Future Service Population (2045) 128,788
Cost per Capita $ 1,911
Facility Standard per Resident $ 1,911
Facility Standard per Worker 841
Based on a weighting factor of 0.44.
Sources: Tables 5.1, 5.2 and 5.3.
The City plans to use fire/life safety facilities fee revenue to construct impr$vements and acquire capital facilities and equipment to add to the system of fire/life safety facilities to serve new development. The City plans to construct the facilities in Table 5.3. Table 5.6 details a projection of fee revenue, based on the service population growth increment identified in Table 5.1. The cost of the planned facilities not funded by fee revenue represents existing development's share of the facilities and can be funded by any revenue source other than impact fees. The facilities identified in Table 5.3 must be constructed by the planning horizon of this study, or new development will have paid too high a fee.
Table 5.6: Projected Fee Revenue
Cost per Capita $ 1,911
Growth in Service Population (2023- 2045) 14,759
Fee Rexenue $ 28,204,000
Net Cost of Planned Facilities $ 46,336,175
Non -Fee Revenue To Be Identified $ (18,132,175)
Sources: Tables 5.1, 5.3 and 5.4.
Table 5.7 shows the maximum justified firellife safety facilities fee schedule. The cost per capita is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per average sized single family, and multifamily dwelling unit is converted into a IAII LLDAN 29
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City of Newport Beach Development Impact Fee Nexus Study fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of each type of unit.
The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting.
In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program.
Table 5.7: Fire/Life
Land Use
Residential Dwellin Unit $
Fety Facilities Fee Schedule
A B C=AxB D=CxC.02
Cost Per Admin
Capita De
E=C+D F=E/Average
Fee per
Base Feel Charge'' 2 � Total Fee
1,911 1.61 I $ 3,076 $
Nonresidential - per 1 000 5 . Ft.
Commercial $ 841
Office 841
Industrial 841
2.12 $ 1,786 $
3.26 2,737
1.16 973
61 1 $ 3,137 $
35 $ 1,821 $
54 2,791
19 992
Ft.3
1.73 1.82
2.79 0.99
Fee per dwelling unit or per 1,000 square feet of nonresidential building space. z Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.
'Assumes an average of 1,803 square feet per dw elling unit based on an analysis of data for the State of California from the 2019 American Housing Survey.
Sources: Tables 2.2 and 5.5.
Mitigation Fee Act Findings
The five statutory findings required for adoption of the fire/life safety facilities fees documented in this chapter are presented below and supported in detail by the analysis above. All statutory references are to the Act.
Purpose of Fee
+ Identify the purpose of the fee (§66001(a)(1) of the Act).
The fire/life safety facilities fee is designed to ensure that new development will not burden the existing service population with the cost of fire/life safety facWties required to accommodate growth. The purpose of the fees documented in this chapter is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide fire/life safety facilities to serve new development.
Use of Fee Revenues
+ Identify the use to which the fees will be put. If the use is financing facilities, the facilities *11W 1 LLDAN
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City of Newport Beach Development impact Fee Nexus Study shall be identified. That identification may, but need not, be made by reference to a capital improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001 (a) (2) of the Act).
Fire/life safety facilities fees, if enacted by the City, would be used to fund expanded fire/life safety facilities needed to serve new development citywide. Facilities funded by these fees are designated to be located within the City limits. A list of planned fire/life safety projects is included in Table 5.3.
Benefit Relationship
+ Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001(a)(3) of the Act).
The City will restrict fee revenue to the acquisition of land, construction of facilities and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the flees are expected to provide a citywide network of facilities accessible to the residents and workers associated with new development, who represent the demand for fire/life safety facilities. Using the system plan cost allocation methodology outlined in Chapter 1, and the cost per capita standard calculated in Table 5.5, the resulting fees ensure that new development will only fund its fair share of improvements at a level of service that is lower than the existing level of service. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential and non-residential use classifications that will pay the fees.
Burden Relationship
+ Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001(a)(4) of the Act).
New residential and nonresidential development will generate additional population growth. An increase in residents and workers will increase the demand for fire/He safety facilities. Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For the fire/life safety facilities fee, demand is measured by a single facility standard (cost per capita) that can be applied to residential development to ensure a reasonable relationship to the type of development. The service population standards are calculated based upon the number of residents associated with residential development and the number of workers associated with non-residential development. To calculate a single, per capita standard, one worker is weighted less than one resident based on an analysis of the relative use demand between residential and non-residential development. See the Service Population section above for a discussion of the worker weighting factor.
The standard used to allocate facilities costs to new development is also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population.
Proportionality
• Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act).
The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated residential and nonresidential population growth the project will accommodate. Fees for a specific project are based on the project's size. Larger development projects can result in a higher service population 31 WILLDAN
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City of Newport Beach Development Impact Fee Nexus Study resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new development project and the cost of the facilities attributable to that project. See Table 2.2 for the occupancy density assumptions that drive the proportionality of the fees between the land uses included in this study.
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6. Water Capacity
This chapter documents a reasonable relationship between new development and a water capacity charge to fund water facilities that serve new development. It uses a buy -in approach to allocate the cost of excess capacity in the system to new development. While the City generally has sufficient water capacity to accommodate new development, additional site -specific water facilities improvements may be required as a condition of approval for a development project.
Water Demand
Estimates of new development and its consequent increased water demand provide the basis for calculating the water facilities fee. The need for water facilities improvements is based on the water demand placed on the system by development. A typical measure of demand is the flow generation rate, expressed as the number of gallons per day generated by a specific type of land use. Flow generation rates are a reasonable measure of demand for the City's system of water improvements because they represent the average rate of demand that will be placed on the system per land use designation.
Table 6.1 shows the average flow generation factors by land use category identified in the City's water master plan.
Table 6.1: Water Demand bv Land Use
Average Flow
Generation per
Flow DU or 1,000 Sq.
Land Use Type Generation' Densityz Ft.
Residential Dv&llinq Unit
Nonresidential - per 1, 000 Sq. fit.
Commercial
Office
Industrial
240.00
1,757 13.07 134.45
2,000 21.78 91.83
1,000 8.71 114.78
' Gallons per acre per day.
2 1,000 square feet per acre for nonresidential. Nonresidential densities are calculated using floor -area -ratios or 0.3 for comrnerclai, 0.5 for office and 0.2 for industrial.
Sources: City of New port Beach 2019 Water Master Plan, Table 4-S; Willdan Financial Services.
Current Water System Asset Valuation
In this case, Replacement New Cost Less Depreciation (RCNLD) is the appropriate method to determine the current value of the water systems. RCNLD is a commonly used method, and it is often preferred to alternative methods such as Original Cost Less Depreciation (OCLD), Original Cost (OC), and Replacement Cost (RC) because of its better reflection of the system's value in today's dollars. Unless the systems have depreciated significantly due to lack of replacement and repair, RCNLD is more defensible because the replacement cost is inflation -adjusted to recover the cost of replacing that capacity in current dollars. RCNLD also accounts for depreciation and consequently addresses the fact that the system reflects its current condition. 33 W I LLDAN
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City of Newport Beach Development Impact Fee Nexus Study The City provided original cost records for the fixed assets of the utility systems as of 2023.
Original costs were adjusted to replacement cost new using the Construction Cost Index (CCI).
Replacement cost new is the estimated expected cost of a similar facility constructed today. The CCI is based on an average of costs among 20 cities and is published by Engineering News - Record (ENR). Accumulated depreciation was calculated based on the replacement cost of each asset, the year it went in service and estimates of the useful life of that asset.
Table 6.2: Water Facilities
Replacement
Replacement Accumulated Cost New Less
Asset Category Original Cost Cost New Depreciation Depreciation Equipment
$ 54,905
Fire Hydrants
728,025
Pumps
2,658,908
Reservoirs
40, 248,160
Water Lines
96,111,565
Water Meters
4,041,124
Water Reducers
82,094
Wells
_ 3,488,219
Total
$ 147,412,990
$ 62,297
$ 28,808
$ 33,489
1,509,527
1,509,527
-
11,883,927
3,471,777
8,412,150
579, 389, 729
406, 090, 901
174,298, 828
268, 632, 525
118,198, 311
150,434, 214
8,379,086
8,379,086
-
170,218
131,635
38,583
8,006,121
2,667,697
5,338,424
$ 878,033,429
$ 539,477,742
$ 338,565,687
Sources: New port Beach Capital Asset Schedule, 2023; ENR Construction Cost Index; Willdan Financial Services. perGallon per M'
Every impact fee consists of a dollar amount, representing the value of facilities, divided by a measure of demand. In this case, buy -in fees are first calculated as the adjusted system value per gallon per day (GPD). Then these amounts are translated into fees per housing unit (fee per unit) and employment space (fee per 1,000 square feet) by multiplying the cost per GPD by the flow generation rate for each land use category. These amounts become the fee schedule.
The calculation of the buy -in fee per GPD for water facilities is shown in Table 6.3. The City provided the sewer system's flow capacity, which is 50.8 million gallons per day. City staff confirmed that the water system has sufficient capacity to accommodate new development within the planning horizon. The adjusted system value divided by the total capacity of the system yields the facilities impact fee per gallon per day of $6.66 for water facilities.
Table 6.3: Fee per GPD
Total System Value $ 338,666,687
System Flow Capacity (Gallons per Day) 60,800,000
Fee per GPD $ 6.66
Sources: Tables 6.1 and 6,2.
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City of Newport Beach Development Impact Fee Nexus Study The maximum justified fee for water capacity is shown in Table 6.4, The fee per GPD is converted to a fee per unit of new development based on the flow generation factors shown in Table 6.1
The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting.
In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program.
Table 6.4: Maximum Justified Water Facilities Fee Schedule A B IC=AxB b=CXO.02 EEC+D FEE/Average
Cost Par
GPD GPD
Base Admin Fee per
arge Fee' Ch1, z Total Feel 5q. Ft.3
Residential Dwelling Unit $ 6.66 240.00 1 $ 1,698 $
Nonresidential - per 1, 000 Sq. Ft.
Commercial $ 6.66 134.45 $ 895 $
Office 6.66 91.83 611
Industrial 6.66 114.78 764
31 1 $ 1,629 $ 0.90
17 $ 912 $ 0,91
12 623 0.62
15 779 0.77
Fee per average sized dwelling unit or per 1,000 square feet of nonresidential building space. ' Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs Including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.
'Assumes an average of 1,803 square feet per dwelling unit based on an analysis of data for the State of California from the 2019 American Housing Survey.
Sources: Tables 6.1 and 6.3.
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7. Sewer Capacity
This chapter documents a reasonable relationship between new development and a sewer capacity charge to fund sewer facilities that serve new development. It uses a buy -in approach to allocate the cost of excess capacity in the system to new development. While the City generally has sufficient sewer capacity to accommodate new development, additional site -specific sewer facilities improvements may be required as a condition of approval for a development project.
Sewer Demand
Estimates of new development and its consequent increased sewer demand provide the basis for calculating the sewer facilities fee. The need for sewer facilities improvements is based on the sewer demand placed on the system by development. A typical measure of demand is the flow generation rate, expressed as the number of gallons per day generated by a specific type of land use. Flow generation rates are a reasonable measure of demand on the City's system of sewer improvements because they represent the average rate of demand that will be placed on the system per land use designation.
Table 7.1 shows the average flow generation factors by land use category used in this analysis.
Sewer flow generation factors were estimated by applying a "water sewer flow factor" which represents the percentage of water flow generation that is ultimately returned to the sewer system. The average water flow factors were identified in Table 6.1.
Table 7.1: Sewer Demand bv Land Use
Water
Average Flow
Water Flow Sewer
Generation
Generation Flow
per DU or
Land Use Type Factor' Factor2
1,000 Sq. Ft.
Residential Dulling unit
240.00
0.66 158.40
Nonresidential - per 1, 000 Sq. Ft.
Commercial
134.45
0.81 108.90
Office
91.83 0.87
79.89 Industrial
114.78
0.67 76.90
' Gallons per unit per day for residential. Gallons per 1,000 building square feet per day for nonresidential. See Table 6.1.
2 Assumed percentage of water flow generation that is ultimately returned to the sewer system.
Sources: City of Newport Beach 2019 Water Master Plan, Table 4-8; Wlldan Financial Services.
Current Sewer System Asset Valuation
In this case, Replacement New Cost Less Depreciation (RCNLD) is the appropriate method to determine the current value of the sewer systems. RCNLD is a commonly used method, and it is often preferred to alternative methods such as Original Cost Less Depreciation (OCLD), Original Cost (OC), and Replacement Cost (RC) because of its better reflection of the system's value in today dollars. Unless the systems have depreciated significantly due to lack of replacement and repair, RCNLD is more defensible because the replacement cost is inflation -adjusted to recover 36 wlW I LLDAN
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City of Newport Beach Development Impact Fee Nexus Study the cost of replacing that capacity in current dollars. RCNLD also accounts for depreciation and consequently addresses the fact that the system reflects its current condition.
The City provided original cost records for the fixed assets of the utility systems as of 2023.
Original costs were adjusted to replacement cost new using the Construction Cost Index (CCI).
Replacement cost new is the estimated expected cost of a similar facility constructed today. The CCI is based on an average of costs among 20 cities and is published by ENR. Accumulated depreciation was calculated based on the replacement cost of each asset, the year it went in service and estimates of the useful life of that asset.
Table 7.2 summarizes the City's current sewer system asset valuation.
Table 7.2: Current Sewer System Asset Valuation
Replacement Cost
Replacement Accumulated New Less
Original Cost Cost New Depreciation Depreciation
Sever Facilities
Pump Stations $ 10,255,603 $ 71,377,176 $ 24,344,106
Sewer Lines/Mains 38,583,727 80,001,600 80,001,600
Total $ 48,839,330 $ 151,378,776 $ 104,345,707
47, 033, 070
47, 033,070
Sources; New part Beach Capital Asset Schedule, 2023; BdR Construction Cost Index; Wildan Financial Services.
Every impact fee consists of a dollar amount, representing the value of facilities, divided by a measure of demand. In this case, buy -in fees are first calculated as the adjusted system value per gallon per day (GPD). Then these amounts are translated into fees per housing unit (fee per unit) and employment space (fee per 1,000 square feet) by multiplying the cost per GPD by the flow generation rate for each land use category. These amounts become the fee schedule.
The calculation of the buy -in fee per GPD for sewer facilities is shown in Table 7.3. The City provided the sewer system's flow capacity, which is 7.44 million gallons per day. City staff confirmed that the sewer system has sufficient capacity to accommodate new development within the planning horizon. The adjusted system value divided by the total capacity of the system yields the facilities impact fee per gallon per day of $6.32 for sewer facilities.
Table 7.3: Fee per GPD
Total System Value $ 47,033,070
System Flow Capacity (Gallons per Day) 7,440,000
Fee per GPD $ 6.32
Sources: City of New port Beach; Table 7.2, Willdan Financial Services.
The maximum justified fee for sewer facilities is shown in Table 7.4. The fee per GPD is converted to a fee per unit of new development based on the flow generation factors shown in 37 WILLDAN
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City of Newport Beach Development Impact Fee Nexus Study Table 7.1. The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit.
The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting.
In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program.
Table 7.4: Maximum Justified Sewer Capacity Fee Schedule A B C=AxB D=CX0.02 E=C+D FEE/Average
Cost Per Base Admin Fee per Sq.
GPD GPD Fee' Char el, 2 Total Feel Ft.3
Residential per D_mIlina Unit 3
Nonresidential - per,1.000 Sq. Ft.
Commercial
Office
Industrial
$ 6.32
158.40
$ 1,001 $
$ 6.32
108.90
$ 688 $
6.32 79.89
504
6.32 76,90
486
20 $ 1,021 $ 0.66
13 $ 701 $ 0.70
10 514 0.51
9 495 0.49
Noto: GPD= Gallons per Day. --
Fee per average sized dw elling unit, per 1,000 square feet of nonresidential building space. z Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.
a Assumes an average of 1.803 square feet per dw elling unit based on an analysis of data for the State of California from the 2019 American (-lousing Survey.
Sources: City of Newport Beach; Tables 7,1 and 7.3, Willdan Financial Services.
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8. AB 602 Requirements
On January 1, 2022, new requirements went into effect for California jurisdictions implementing impact fees. Among other changes, AB 602 added Section 66016.5 to the Government Code, which set guidelines for impact fee nexus studies. Four key requirements from that section which concern the nexus study are reproduced here:
■ 66016.5. (a) (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. ■ 66016.5. (a) (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. ■ 66016.5. (a) (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.
■ 66016.5. (a) (6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.
Compliance with AB 602
The following sections describe this study's compliance with the new requirements of AB 602. 66016.5. (a) (2) - Level of Service
For fees calculated under the buy -in methodology, the fees are calculated such that new development funds facilities at the existing level of service. Fees calculated using the planned facilities standard represent a lower level of service than currently exists. For fees calculated using the system plan methodology, the fees were calculated such that new development would fund its fair share of an increased level of service. This is contingent on existing development funding its share of the higher level of service through any funding source other than impact fees.
All fees in this analysis use one of these approaches. The existing level service in terms of the existing facility cost per capita, or cost per gallon per day is shown in each corresponding chapter.
66016.5. (a) (4) — Review of Original Fee Assumptions
This is the first impact fee study conducted by the City of Newport Beach, so there are no original fee assumptions to review.
6016.5. (a) (5) — Residential Fees per Square Foot
Impact fees for residential land uses are calculated per square foot for all fee categories and comply with AB 602.
66016.5. (a) (6) — Capital Improvement Plan
A description of the planned facilities that the City could fund with impact fee revenue is included in each chapter in this report. Adoption of this nexus study would approve the planned facilities identified herein as the Capital Improvement Plan for this nexus study. The City will select which I LL.DAN 39
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City of Newport Beach Development Impact Fee Nexus Study particular projects fund with existing impact fee fund balances and projected fee revenue annually through its budgeting and CIP process.
40 W1LWAN
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9. Implementation
Impact Fee Program Adoption Process
Impact fee program adoption procedures are found in the California Government Code section 66016. Adoption of an impact fee program requires the City Council to follow certain procedures including holding a public hearing. Data, such as an impact fee report, must be made available at least 10 days prior to the public hearing. The City's legal counsel should be consulted for any other procedural requirements as well as advice regarding adoption of an enabling ordinance and/or a resolution. After adoption there is a mandatory 60-day waiting period before the fees go into effect.
Inflation Adjustment
The City can keep its impact fee program up to date by periodically adjusting the fees for inflation.
Such adjustments should be completed regularly to ensure that new development will fully fund its share of needed facilities. We recommend that the CCCI be used for adjusting fees for inflation. The CCCI is based on data from ENR and is aggregated and made available for free by the State of California.
The fee amounts can be adjusted based on the change in the index compared to the index in the base year of this study (2024).
While fee updates using inflation indices are appropriate for periodic updates to ensure that fee revenues keep up with increases in the costs of public facilities, the City will also need to conduct more extensive updates of the fee documentation and calculation (such as this study) when significant new data on growth forecasts and/or facility plans become available. Note that decreases in index value will result in decreases to fee amounts.
Reporting Requirements
The City will comply with the annual and five-year reporting requirements of the Mitigation Fee Act. For facilities to be funded by a combination of public fees and other revenues, identification of the source and amount of these non -fee revenues is essential. Identification of the timing of receipt of other revenues to fund the facilities is also important.
There is no time limit by which impact fee revenue must be spent. However, if the City is accruing impact fee revenue to fund new development's share of a project, then it must make certain findings with respect to unexpended impact fee fund balances after five years. Among other requirements, the five-year report requires the City to "Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements," and to "Designate the approximate dates on which supplemental funding is expected to be deposited into the appropriate account or fund."1
On October 13, 2023 AB 516 was signed into law by the Governor of California, and went into effect on January 1, 2024. The bill requires local agencies to:
+ Include information on projects noted in prior reports and whether construction began on the approximate date noted in the previous report.
1 California Government Code § 66001(d).
41 W I LLDAN
15-66
City of Newport Beach Development Impact Fee Nexus Study • Explain the reason for any delay in the start of the project and provide a new approximate date construction will begin.
• Identify the number of people or entities that receive refunds of Mitigation Fee Act fees.
The bill also requires local agencies to inform people paying mitigation fees that they:
• Can request an audit to determine if the fees charged by a local agency are more than the amount of money needed to cover the cost of the public improvements. • Can receive information by mail about when the local agency will meet to review its annual Mitigation Fee Act report.
• Can access and review mitigation fee information on the local agency's website, and how to do so.
Table 9.1 summarizes the annual and five-year reporting requirements identified in the Act. 42 W I LLDAN
pINAHCIAt 4EpwCES
15-67
City of Nowport beach Development lmpecf Fee Nexus Study Table 9.1: Annual and Five -Year Reportina Requirements CA Gov't Code
Recommended
Section Timing
Reporting Requirements'
Fee Adjustment
(A) Identify the purpose to which the fee is to be put. (B) Demonstrate a reasonable rolationshlp between the fee and the purpose The fifth fiscal year following the
for which it is charged.
66001.(d) first deposit Into the account or
(C) Identify all sources and amounts of funding anticipated to complete Comprehenslw
fund, and every five years
financing In incomplete improvements.
Update
thereafter
(D) Designate the approximate dates on which supplemental funding Is expected to be deposited into the appropriate account or fund. (A) A brief description of the typo of The in the account or fund. (B) The amount of the W.
(C) The beginning and ending balance of the account or fund. (D) The amount of the fees collected and the interest earned. (E) An Identification of each public Improvement on which fees were expanded Including share funded by fees.
(F) (1) An ldentiflcatton of an approximate date by which the construction of the public Improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an Within lao days afterthe last
Incomplete public Improvement and the public Improwment remains Inflationary
66006. (b) day of each fiscal year
incomplete.
(II) An Identification ofeach public improvement identified In a previous report Adjustment
pursuant to clause (1) and whether construction began on the approximate date noted in the prelAous report.
(111) For a project Identified pursuant to clause (11) forwhich construction did not commence by the approximate date provided in the prevous report, the reason for the delay and a revised approximate dale that the local agency will commence construction.
(G) A description of any potential interfund transfers. (H) The amount of refunds made (if any).
' Edited for brevity. Refer to the government code for full description.
Sources: Uftrnla Government Code §66001 and §66006.
43 15-68
City of Newport Beach Development Impact Fee Nexus Study Programming Revenues and Projects with the CIF'
The City maintains a Capital Improvement Program {CIP} to plan for future infrastructure needs.
The CEP identifies costs and phasing for specific capital projects. The use of a CIP in this manner documents a reasonable relationship between new development and the use of those revenues.
The City may decide to alter the scope of the planned projects or to substitute new projects if those new projects continue to represent an expansion of the City's facilities and provide benefit to new development. If the total cost of facilities varies from the total cost used as a basis for the fees, the City should consider revising the fees accordingly. 44 W I LLDAN
FINANCIAL SHHVICES
15-69
Appendix
Appendix Table A.1: Marine Vessel Inventory
Tota I
Replacement
Tvne Count Unit Cost Cost
Recreation Vessels
RS Venture
RS Quest
WD Schock Lido 14
Waterline J22
Zodiak Pro Classic 420
Single Ocean Kayak
Doubel Ocean Kayak
Subtotal
Harbor Vessels
Boston Whaler, 19'
Chislett, 21'
Subtotal
Total
Source: City of Newport Beach.
2 $ 42,390 $ 84,780
12 102,420 1,229, 040
3 98,800 296,400
6 120,000 720,000
2 43,026 86,052
8 3,144 25,152
16 9,472 151,552
49 $ 2,592,976
1 $ 200,000 $ 200,000
2 175,000 350,000
3 $ 550,000
52 $ 3,142, 976
45 WILLDAN
• :Fu.irt5
15-70
City of Newport Beach Development Impact Fee Nexus Study Appendix Table A.2: Police Vehicle and Equipment Invento
REPLACEMENT
UNIT iE
YEAR MAKE
MODEL
ASSIGN
DESCRIPTION
F-9 CATEGORY
COST
1 1804
PlainfDetecthe
$ 65,000
2 1805
2020 FORD
EXPLORER
COP
SUV
SUV
35,000
3 1820
2019 FORD
EXPLORER
COP
Volunteers
SUV
36,000
4 1821
2019 GMC
CANYON
COP
Volunteers
PlckupTruck
28,000
5 1634
2009 FORD
RANGER
COP
Volunteers
Pickup Truck
28,000
6 1842
2016 Freightliner
3500 SPRINTER
COP
Command Post
Van
176,000
7 1844
Plain/Delective
46,000
8 1855
2007 TOYOTA
CAMRY
COP
Sedan
38,000
9 1856
PtalnlDetactive
38,000
10 1876
2007 NISSAN
QUEST
COP
Van
35,000
11 1898
2020 FORD
360 PASSENGER COP
Explorers' Van
Van
52,000
12 1917
PlairVDetecllve
40,000
13 1919
PlairdDetecthe
50,000
14 1031
2005 FORD
ESCAPE
SSD
Mall Vehicle
SUV
26,000
15 1935
PlairVDotective
50,000
16 1937
2017 DODGE
DURANGO
SSD
SUV
36,000
17 1940
2009 NISSAN
TITAN
SSD
4X2 Pickup
Pickup Truck
36,000
18 1941
2019 DODGE
DURANGO
SSD
SUV
36,000
19 1967
2019 FORD
F-250
SSD
4WD Pickup
Pickup Truck
45,000
20 1977
2008 CHEVY
SILVERADO
SSD
4WD Pickup
Pickup Truck
45,000
21 2001
2021 FORD
EXPLORER
PATROL
Patrol SupvSUV
Patrol Vehicle
57,000
22 2004
2016 FORD
EXPLORER
PATROL
Patrol SUV
Patrol Vehicle
64,000
23 2008
2014 FORD
EXPLORER
PATROL
Patrol SUV
Patrol Vehicle
64,000
24 2010
2019 FORD
EXPLORER
PATROL
Patrol SUV
Patrol Vehicle
64,000
25 2017
2019 FORD
EXPLORER
PATROL
Patrol SUV
Patrol Vehicle
64,000
26 2022
2018 FORD
EXPLORER
PATROL
PatroISUV
Patrol Vehicle
64,000
27 2024
2018 FORD
EXPLORER
PATROL
Patrol8UV
Patrol Vehicle
144,000
28 2025
2018 FORD
EXPLORER
PATROL
PatrolSUV
Patrol Vehicle
64,000
29 2027
2018 CHEVY
SILVERADO
PATROL
4WD Patrol Truck
Patrol Vehicle
62,000
30 2028
2020 FORD
HYBRID EXPLORE PATROL
Patrol SUV
Patrol Vehicle
53,000
31 2029
2021 FORD
HYBRID EXPLORE PATROL
Patrol SUV
Patrol Vehicle
57,000
32 2030
2021 FORD
HYBRID EXPLORE
PATROL
Patrol SUV
Patrol Vehicle
57,000
33 2032
2019 FORD
EXPLORER
PATROL
Patrol SUV
Patrol Vehicle
64,000
34 2040
2012 FORD
CROWN VIC
PATROL
Patrol LT
Patrol Vehicle
64,000
35 2041
2019 FORD
HYBRID EXPLORE
PATROL
Patrol SUV
Patrol Vehicle
57,000
36 2042
2021 FORD
HYBRID EXPLORE PATROL
Patrol SUV
Patrol Vehicle
57,000
37 2043
2021 FORD
HYBRID EXPLORE PATROL
Patrol SUV
Patrol Vehicle
57,000
38 2044
2021 FORD
HYBRID EXPLORE PATROL
Patrol SUV
Patrol Vehicle
57,000
39 2045
2021 FORD
HYBRID EXPLORE PATROL
Patrol SUV
Patrol Vehicle
57,000
40 2046
2021 FORD
HYBRID EXPLORE PATROL
Patrol SUV
Patrol Vehicle
57,000
41 2047
2021 FORD
HYBRID EXPLORE PATROL
Patrol SUV
Patrol Vehicle
67,000
42 2051
PlainlDeteothm
45,000
43 2053
2019 FORD
EXPLORER
PATROL
Patrol K-9 SUV
Patrol Vehicle
64,0D0
44 2054
2019 FORD
EXPLORER
PATROL
Patrol SUV
Patrol Vehicle
64,000
45 2058
2019 FORD
EXPLORER
PATROL
Patrol SUV
Patrol Vehicle
64,000
46 2062
2014 FORD
EXPLORER
PATROL
Patrol SUV
Patrol Vehicle
04,000
47 2065
2019 FORD
EXPLORER
PATROL
Patrol SUV
Patrol Vehicle
64,000
48 2066
2019 FORD
EXPLORER
PATROL
Patrol SUV
Patrol Vehicle
64,000
49 2067
2019 FORD
EXPLORER
PATROL
Patrol SUV
Patrol Vehicle
64,000
50 2069
2019 FORD
EXPLORER
PATROL
Patrol SW
Patrol Vehicle
64,000
51 2070
Plaln/Delective
50,000
52 2072
PlalnfDolective
50,000
53 2076
2019 FORD
EXPLORER
PATROL
Patrol K-9 SUV
Patrol Vehicle
64,000
54 2080
2019 LOGAN
CARRIER
PATROL
Horse Trailer
Trailer
20,000
55 2081
2014 LENCO
BEAR CAT
PATROL
SWAT Armored VehICIE Specialty Vehicle
350,000
56 2062
2003Froighlliner VAN
PATROL
SWATVan
Heavy Truck
275,000
57 2084
2018 LOGAN
CROSSFIRE
PATROL
Morse Trailer
Trailer
20,000
58 2085
2020 FORD
F-150
PATROL
4WD Patrol Truck
Patrol Vehicle
62,000
59 2086
2020 FORD
F-150
PATROL
4WD Patrol Truck
Patrol Vehicle
62,000
60 2087
2013 FORD
E-350
PATROL
Transport Van
Van
70,000
61 2089
2019 FORD
F-150
PATROL
4WD Patrol Truck
Patrol Vehicle
62,000
62 2095
2014 KAWASAKI BRUTEFORCE 30 PATROL
Beach ATV
Beach ATV
6,000
63 2096
2014 KAWASAKI BRUTEFORCE 30 PATROL
Beach ATV
Beach ATV
6,000
64 2098
2020 POLARIS
RANGER CREW
PATROL
Beach UTV
Beach ATV
23,000
65 2122
2016 BMW
R120ORTP
TRAFFIC
Motorcycle
Police Motorcycle
34,000
66 2123
2016 BMW
R120ORTP
TRAFFIC
Motorcycle
Pollee Motorcycle
34,000
67 2127
2016 BMW
R120ORTP
TRAFFIC
Motorcycle
Police Motorcycle
34,000
68 2128
2016 BMW
R1200RTP
TRAFFIC
Motorcycle
Police Motorcycle
34,000
69 2129
20t6 BMW
131200RTP
TRAFFIC
Motorcycle
Police Motorcycle
34,000
70 2131
20t7 FORD
EXPLORER
DET
DC
PlainlDetectivB
45,000
71 2133
2009 CHEVY
SILVERADO 2WD TRAFFIC
Comm Enforcement
PlckupTruck
62,000
72 2138
2014 FORD
EXPLORER
TRAFFIC
Traffic Investigators
PlalnfDetective
55,000
46 YY° I LLDAN
FINANCIAL SEkV M
15-71
City of Newport Beach Development Impact Fee Nexus Study Appendix Table A.2: Police Vehicle and Equipment Inventory Continued UNIT N
YEAR MAKE
MODEL
ASSIGN
DESCRIPTION
F-9 CATEGORY
REPLACEMENT
COST
73 2130
PlairdDetecti%e
40,000
74 2144
Sedan
46,000
75 2147
2016 TOYOTA
TACOMA
TRAFFIC
Parking Control
Traffic Vehicle
38,000
76 2149
2015 TOYOTA
TACOMA
TRAFFIC
Parking Control
Traffic Vehicle
38,000
77 2150
20W TOYOTA
TACOMA
TRAFFIC
Parking Control
Traffic Vehicle
38,000
78 2151
2016 TOYOTA
TACOMA
TRAFFIC
Parking Control
Traffic Vehicle
38,000
79 2152
2021 TOYOTA
TACOMA
TRAFFIC
Parking Control
Traffic Vehicle
38,000
80 2160
2016 CHEVY
COLORADO
TRAFFIC
Animal Control 4WD
Traffic Vehicle
43,000
81 2162
2017 CHEVY
COLORADO
TRAFFIC
Animal Control 4WD
Traffic Vehicle
43,000
82 2170
2017 CHEVY
COLORADO
TRAFFIC
Animal Control 4WD
Traffic Vehicle
43,000
83 2171
2019 BMW
R125ORT
TRAFFIC
Motorcycle
Police Motorcycle
34,0D0
84 2172
2019 BMW
R125ORT
TRAFFIC
Motorcycle
Police Motorcycle
34,000
85 2173
2019 BMW
R125ORT
TRAFFIC
Motorcycle
Police Motorcycle
34,000
86 2174
2020 BMW
R125ORT
TRAFFIC
Motorcycle
Police Motorcycle
34,000
87 2175
2020 BMW
R125ORT
TRAFFIC
Motorcycle
Police Motorcycle
34,000
88 2176
2020 BMW
R125ORT
TRAFFIC
Motorcycle
Police Motorcycle
34,000
89 2177
2020 BMW
R125ORT
TRAFFIC
Motorcycle
Police Motorcycle
34,000
90 NEW
2021 BMW
R125ORT
TRAFFIC
Motorcycle
Police Motorcycle
40,000
91 NEW
2023 BMW
R125ORT
TRAFFIC
Motorcycle
Police Motorcycle
40,000
92 NEW
2023 BMW
R125ORT
TRAFFIC
Motorcycle
Police Motorcycle
40,000
93 2178
2013 HAULMARK PASSPORT
TRAFFIC
Enclosed ATV Trailer
Trailer
20,000
94 2179
2020 BMW
R1250RT
TRAFFIC
Motorcycle
Police Motorcycle
34,000
95 2180
2009 LOOK
TRAILER
TRAFFIC
Explorers' Box Trailer
Trailer
16,000
96 2181
2016 KENDON
TRAILER
TRAFFIC
Stand-up Motor hauler
Trailer
5,000
97 2193
2008 ATS
RADAR
TRAFFIC
Radar Trailer
Trailer
20,000
98 2194
2014 ATS
RADAR
TRAFFIC
Radar Trailer
Trailer
20,000
99 2226
PlaiNDetective
38,000
100
2227
PlainlDetective
38,000
101
2228
PlairdDetective
40,000
102
2229
PlairdDetective
38,000
103
2259
PlairdDetecthe
40,000
104
2262
Plain/Detective
40,000
105
2265
PlairkfDetective
40,000
106
2267
PlalnfDetective
40,000
107
2271
PlainfDetective
40,000
108
2272
Plain/Detective
40,000
109
2275
2014 FORD
EXPLORER
DET
CSI
SUV
40,000
110
2278
2014 FORD
EXPLORER
DET
CSI
SUV
40,000
111
2286
2011 FORD
E-350
DET
Transport Van
Van
70,000
112
2287
PlainfDetective
38,000
113
2288
PlairdDetective
40,000
114
2289
Plain/Detective
40,000
SUBTOTAL -VEHICLES
$ 5,748,000
Equipment
115
In -Car Computers
$ 200,000
116
Gas Masks
105,000
117
Patrol Helmets
75,000
118
Patrol Rifles
78,000
119
Automated External Defibrillators
90,000
SUBTOTAL-EQUIPMEN $ 548,000
Total
$ 6,298,000
Source: City of Newport
Beach.
47 WI LL-DAN
FIHhNCIhr SE0.VI�F$
15-72
City of Newport Beach Development Impact Fee Nexus Study Appendix Table A,3: Fire Facilities Worker Weighting Factor Population or
Category Calls for Service Employees Calls perCapita
Residential 7,307 82,008 0.09
Nonresidential 2,871 72,776 0.04
Other' 1,555
Worker Weighting Factor 0.44
1 Nonresidential calls per capita / residential calls per capita. 2 "Other" calls are those that cannot be classified as residential or nonresidentlal-serving calls.
Sources: New port Beach Fire Department; Wilidan Financial Services.
W WILLDAN
-- :.-' FINANCIAL SERVICES
48 15-73
City of Newport Beach Development Impact Fee Nexus Study Appendix Table AA: Fire/Marine Vehicle, Apparatus and Equipment Inventory Estimated
Org Name
Eq #
Description
Model Yet Manufacturer 1 Model 11) Replacement Cost
RrelMadne
2844
_
SEAWATCH 3 - 29.5 FT RESCUE BOAT
1986
NOREK
T58 $
650,000
Fire/Marine
2842
SEAWATCH 1 - 29.6 FT RESCUE BOAT
2003
CRYSTALINER
RESCUE
65D,D09
Fire/Madno
2876
TRAILER WATERCRAFT
2003
ZIEMAN
G26
3,000
FlrelMarine
2840
SEAWATCH 2 - 29.5 FT RESCUE BOAT
2007
CRYSTALINER
RESCUE
650,000
FlrelMarine
2866
QUAD
2017
YAMAHA
YXC70VPSHL
22,000
Fire/Marine,
2873
YAMAHA WAVE RUNNER
2014
YAMAHA
FA1800-N FX
18,000
FlrelMarine
2874
YAMAHA WAVE RUNNER
2014
YAMAHA
FA1800-N FX
18,000
FlWMerine
2845
SUV 4X4
2015
CHEVROLET
TAHOE
46,000
F1relMarine
2897
114 TON 4X4 PICK UP 4 DOOR
2017
TOYOTA
TACOMA
45,000
FirelMarine
2898
114 TON 4X4 PICK UP 4 DOOR
2017
TOYOTA
TACOMA
45,000
Fire/Marine
2896
114 TON 4X4 PICK UP 4 DOOR
2017
TOYOTA
TACOMA
45,000
FirelMarine
2833
114 TON 4X4 PICK UP TRUCK
2018
TOYOTA
TACOMA
44,000
FIrelMarine
2605
114 TON 4X4 PICK-UP TRUCK
20t9
TOYOTA
TACOMA
45,000
FirafMadne
2BO3
114 TON 4X4 PICK-UP TRUCK
2019
TOYOTA
TACOMA
45,000
FirelMadne
2804
114 TON 4X4 PICK-UP TRUCK
2019
TOYOTA
TACOMA
46,000
FirelMadne
2802
114 TON 4X4 PICK-UP TRUCK
2019
TOYOTA
TACOMA
45,000
Fire/Marine
2801
TAHOE 4X4 SUV
2018
CHEVROLET
TAHOE
46,000
Fire/Marine
2830
FORD EXPEDITION 4X4
2020
FORD
EXPEDITION
-
FirelMarine
2806
114 TON 4X4 PICK-UP TRUCK
2020
TOYOTA
TACOMA
FirelMarins
2607
114 TON 4X4 PICK-UP TRUCK
2D20
TOYOTA
TACOMA
Fire/Madne
280E
114 TON 4X4 PICK-UP TRUCK
2020
TOYOTA
TACOMA
FirelMadne
2809
114 TON 4X4 PICK-UP TRUCK
2021
TOYOTA
TACOMA
FirelMarine
2810
114 TON 4X4 PICK-UP TRUCK
2021
TOYOTA
TACOMA
Fire/Marine
2811
114 TON 4X4 PICK-UP TRUCK
2021
TOYOTA
TACOMA
-
Flre-Admin
2308
TRUCK 1 TON FLATBED STAKE
2009
FORD
F-360
41,967
Fire Admin
2311
112 TON 4X4 PICK-UP TRUCK
2014
FORD
F-150
36,147
Fire Admin
231)1
SUV 4X4
2019
CHEVROLET
TAHOE
55,077
Fire -Community Education
2309
TRUCK 112 TON EXT CAB
20DO
FORD
F-151)
26,DOO
FIre-Community Education
23W
112 TON PICKUP 04
2021
FORD
F-150
-
Flre-EMS
2648
MEDIC
2013
INTHAVISTAR
TERRASTARS
305,000
Fire -EMS
2647
MEDIC
2013
INTNAVISTAR
TERRASTAR8
305,000
Fire -EMS
2646
MEDIC
2013
INTNAVISTAR
TERRASTAR8
305,000
Fire -EMS
2601
POLARIS RANGER ATV
2018
POLARIS
RANGER
18,000
Fire -EMS
2649
FREIGHTLINERILEADERAMBULANCE
2017
FREIGHTLINER FL-70
305,000
Fire -EMS
2650
LEADERAMBULANCE
2018
FREIGHTLINERFL70
390,000
Fire -EMS
2651
LEADERAMBULANCE
2018
FREIGHTLINERFUD
390,0DO
Fire -EMS
2502
SUV
2015
FORD
EXPLORER
-
Fire -EARS
2302
SUV
2015
FORD
EXPLORER
38,497
Fire -EMS
2602
16'REHABTRAILER
2019
SOUTHEASTEFTRL0007
70,000
Flre40peratlons
2441
AMERICAN LA FRANCE FIRE ENGINE
1920
LAFRANCE
FIRE TRUCK
-
Fire -Operations
2462
SIMON LTI 1DOFT, AERIAL
1997
SPARTAN I SIN 52-88-320
796.564
Fire -Operations
2410
FIRE TRUCK - PUMPER 1250 GALLON
2003
AMER LAFRAN EAGLE
700,000
FIre,Operallons
2411
FIRE TRUCK - PUMPER 1250 GALLON
2003
AMER LAFRAN EAGLE
700,000
Fire -Operations
2415
FIRE TRUCK - PUMPER 1250 GALLON
2005
AMER LAFRAN EAGLE
700,000
Fire-Operatlens
2497
UTILITY TRAILER
2012
CARRY ON
COBX14GW
2,201)
Fire-Operatlons
2402
FIRE ENGINE PUMPER
2010
PIERCE
ARROW XT
721.028
Fire -Operations
2403
FIRE ENGINE PUMPER
2010
PIERCE
ARROW XT
721,028
Fire -Operations
2480
112 TON 4X4 PICK UP TRUCK
2014
FORD
F-160
36,147
Fire -Operations
2429
314 TON 4X4 XLT CREW CAB
2016
FORD
F-250
61,389
Fire -Operations
2463
AERIAL LADDER FIRE TRUCK
2011
PIERCE
ARROW XT ML
1,430,603
Fire -Operations
2472
FIRE ENGINE PUMPER
2014
PIERCE
ARROW XT
8DD,624
Fire -Operations
247t
FIRE ENGINE PUMPER
2014
PIERCE
ARROW XT
BOD,624
Fire -Operations
2474
FIRE ENGINE PUMPER
2014
PIERCE
ARROW XT
800.324
Fire -Operations
2473
FIRE ENGINE PUMPER
2014
PIERCE
ARROW XT
800,624
Fire -Operations
2508
SUV 4X4
2D15
CHEVROLET
TAHOE
Fire -Operations
2401
SUV 4X4
2015
CHEVROLET
TAHOE
49,926
Fire-Operatlons
2475
FIRE ENGINE PUMPER
20t6
PIERCE
ARROW XT
858,962
Fire -Operations
2476
FIRE ENGINE PUMPER
2016
PIERCE
ARROW XT
858,962
Fire -Operations
2459
SUV 4X4
2017
CHEVROLET
SUBURBAN
65,689
Fire -Operations
2498
ONAN GENERATOR
2019
ONAN
54DGCA
30,000
Fire -Operations
2464
AERIAL LADDER TRUCK WITH PUMP fG 2015
PIERCE
VELOCITY
1,002,966
FIre-Operatlons
2404
SUV 4X4
2019
CHEVROLET
TAHOE
55,077
Fire-Operellons
2430
DES PUMPER
2005
HME
18 SFO
-
Fire -Operations
2405
FORD EXPEDITION 4X4
2020
FORD
EXPEDITION
Fire -operations
2477
FIRE ENGINE PUMPER
2021
PIERCE
ARROW Xf-
Flre-Operations
2478
FIRE ENGINE PUMPER
2021
PIERCE
ARROW XT
-
Fire -Prevention
2506
SUV FIRE TRAINING
2010
FORD
EXPLORER
30,825
Fire -Prevention
2511
SUV
2020
FORD
ESCAPE
-
Flre-PrewnElon
2514
SUV
2020
FORD
ESCAPE
Fire -Prevention
2509
SUV
2020
FORD
ESCAPE
FireTfnglJr Guards
2837
112 TON 4X4 TRUCK
2013
FORD
F-150
36,000
Fire-Tmg1Jr Guards
2860
FORD F-160 4X4
2017
FORD
F-150
40,000
Total
$
17,613,550
Source; qty of New pod Beach.
49 W I LLDAN
FINANCIAL. SERVICES
15-74
Exhibit "B"
Fiscal Year 2024-25 Development Impact Fee Schedule
Development Type
Residential
Commercial
Office
Industrial
Fee Category
Feel2,3,5,7
Feel,2,3,4,6
Feel,2,3,4,6
Feel,2,3,4,6
Recreation
$4.70
-
-
Police
$101
$0.74
$1.14
$0.40
Fire
$173
$182
$279
$0.99
Water
$0.90
$0.91
$0.62
$0.77
$ewer
$0:56..
$0.70 "
$05.1
1. All fees are assessed per square foot.
2. The fees shall be adjusted annually for inflation based on the California Construction Cost Index ("CCCI") one year after the effective date of Resolution No. 2024- . The fees shall be paid prior to issuance of any certificate of occupancy with the total amount owed adjusted for inflation as provided by state law.
3. If a development project will be constructed in phases, and separate building permits and certificates of occupancy will be issued for each phase, the fees shall be calculated based on the development characteristics of the entire development project. Payment of the fees may be made separately for each phase, provided the amount paid for each phase shall be in proportion that each phase represents of the total development project. The amount owed for each phase shall be adjusted for inflation as of the date of payment of the fees for that phase.
4. For nonresidential development projects, the fees shall be assessed based on the gross floor area (including all ancillary spaces and rooms such as basements, storage rooms, mechanical rooms, and similar areas) of the development pursuant to Chapter 20.70 (Definitions) of the NBMC. The fees shall apply to new construction of nonresidential development projects and additions to existing buildings. In the case of an addition, the fees shall apply to the net increase in floor area (credit shall be given for the existing use).
5. For residential development projects, the fees shall be assessed based on the gross floor area (including all ancillary spaces and rooms such as gyms, clubhouses, lobbies, leasing offices and similar areas) of the development pursuant to Chapter 20.70 (Definitions) of the NBMC. The fees shall apply to the following types of residential development:
a. New housing projects and subsequent additions constructed on any site identified in Section
20.80.025 (Housing Opportunity Overlay Zoning Districts maps), pursuant to Sections
20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts), or pursuant to General Plan Policy LU 4.4.
b. New housing projects entitled and constructed in conjunction with a General Plan amendment or other legislative amendment.
c. New housing projects constructed pursuant to State or Federal streamlining provisions that allow residential development beyond or in excess of the dwelling unit limits specified in Sections 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts) and 20.80.025 (Housing Opportunity Overlay Zoning Districts maps) of the NBMC or that are intended to circumvent local zoning and General Plan requirements related to density or land use type, unless expressly prohibited by State or Federal law.
6. The following types of nonresidential development are exempt from these fees:
a. Retail sales, cultural institutions, eating and drinking establishments (fast casual, take-out, fast food, full -service, bars/lounges/nightclubs, wine tasting rooms and similar uses), boat rentals and sales, and vehicles sales uses, all of which are defined in Section 20.70 (Definitions) of the NBMC.
15-75
b. Visitor Accommodations as defined in Section 20.70 (Definitions) of the NBMC. c. Short-term lodging units may be subject to development impact fees as a residential use. d. Temporary uses.
e. Tax exempt educational uses.
f. Tax exempt religious facilities.
g. Tax exempt welfare or public social service facilities. h. Governmental facilities.
i. Other types of development which the City Council determines by resolution is exempt.
7. The following types of residential development are exempt from these fees:
a. Accessory dwelling units or junior accessory dwelling units. b. Temporary, transitional or permanent supportive housing and emergency shelters. c. Gross floor area of a development that is devoted entirely to dwelling units that are affordable to moderate- or lower -income households. For projects that include a mix of market rate and affordable dwelling units, only the gross floor area of the affordable dwelling units themselves shall be exempt (I.e., the gross floor area within the walls of the affordable dwelling unit). d. Other types of development which the City Council determines by resolution is exempt. 15-76
Exhibit "C"
Development Impact Fee Program Guidelines
Credits and refunds shall be provided as follows:
1. No fee credit shall be given for the conversion, redevelopment, replacement, or adaptive reuse of existing nonresidential buildings to residential uses.
2. No fee credit shall be given for the conversion, redevelopment, replacement, or adaptive reuse of existing residential buildings to nonresidential uses.
3. For the replacement of a residential use, fee credit shall be provided for existing residential uses onsite. Forthe replacement of a nonresidential use, fee credit shall be provided for the existing nonresidential use.
4. Where a land use proposed for a site is less intensive than the existing land use, no refund shall be available to the developer.
15-77
Attachment B
Ordinance No. 2024-30
15-78
ORDINANCE NO. 2024-30
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, REPEALING AND
REPLACING CHAPTER 14.33 (WATER AND SEWER
CAPITAL IMPROVEMENT FEE) TO THE NEWPORT
BEACH MUNICIPAL CODE AUTHORIZING COLLECTION
OF DEVELOPMENT IMPACT FEES FOR WATER AND
SEWER SERVICE FACILITIES
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California;
WHEREAS, cities may apply fees for proposed developments to cover the cost of public facilities by way of its police power as codified in the California Constitution Article XI Section 7;
WHEREAS, California Government Code Section 66000 et seq. ("Mitigation Fee Act") authorizes the City to collect fees in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project;
WHEREAS, development impact fees must be supported by a nexus study which calculates the purpose of the fee, the use to which it will be put, the relationship between the fee's use and the development, and establish the need for the fee pursuant to the Mitigation Fee Act;
WHEREAS, the Community Development Department commissioned a development impact fee nexus study with Willdan Financial Services; WHEREAS, the City's 6th Cycle Housing Element projects an increase in the population, residential dwelling units, and employment in Newport Beach; WHEREAS, this future residential and nonresidential growth will create additional demand on the City's infrastructure for water and sewer service facilities; 15-79
Ordinance No. 2024-
WHEREAS, the City's current system consists of water and sewer lines and infrastructure to serve the community;
WHEREAS, Chapter 14.33 (Water and Sewer Capital Improvement Fee) authorizes the City to collect water system impact fees and sewage collection and treatment facilities impact fees to pay for the cost of improvements to the water and sewer system necessitated by new development; and
WHEREAS, a duly noticed public hearing was held by the City Council on November 12, 2024, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and the Mitigation Fee Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows:
Section 1: Chapter 14.33 (Water and Sewer Capital Improvement Fee) of the Newport Beach Municipal Code is hereby repealed and replaced with Exhibit "A," which is attached hereto and incorporated by reference.
Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance.
Section 3: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
15-80
Ordinance No. 2024-
Section 4: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Section 5: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. 15-81
Ordinance No. 2024-
Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption.
This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 12th day of November, 2024, and adopted on the 10th day of December, 2024, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
WILL O'NEILL, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATT RNEY'S OFFICE
--k
im-
AAROrV"t. HARP, JIV ATTORNEY
Attachment: Exhibit A — Chapter 14.33 (Water and Sewer Capital Improvement Fee) 15-82
Exhibit A
Chapter 14.33
WATER AND SEWER CAPITAL IMPROVEMENT FEE
Sections:
14.33.010
Purpose.
14.33.020
Definitions.
14.33.030
Established.
14.33.040
Use.
14.33.050
Developer construction.
14.33.060
Adjustments.
14.33.010 Purpose.
A. To implement the goals and objectives of the capital improvement program for facilities and equipment of the City of Newport Beach, and to mitigate the impacts upon the City's sewage collection and treatment facilities caused by new development in the City, certain public facilities and equipment must be constructed and/or improvements made. The public facilities and equipment are specifically identified in the City's capital improvement program for facilities and equipment as adopted by the City Council and as amended from time to time. The list of water and sewage collection and treatment facilities and equipment may be added to or deleted from the approved program. The City Council has determined that a development impact fee is needed to finance these public improvements and to pay for the development's fair share of the costs of these improvements.
B. In establishing the fee described in this chapter, the City Council has found the fee to be consistent with its general plan and, pursuant to Govt. Code Section 65913.2, has considered the effects of the fee with respect to the City's housing needs as established in the Housing Element of the General Plan.
14.33.020 Definitions.
In this chapter, unless the context otherwise requires:
"Cost of improvements" means all costs related to acquisition, construction, repair and financing, but does not include costs of routine maintenance. "New development" means any residential or nonresidential (nonresidential includes commercial and industrial) construction project except as specifically exempted in this chapter or by resolution establishing the fee.
15-83
"Sewage collection and treatment facilities" means capital improvements related to the collection, treatment and disposal of sewage including but not limited to collection systems and sewage treatment plant facilities.
"Water system" means capital improvements related to the distribution, treatment and storage of potable water for public health and safety.
14.33.030 Established.
A. A water system impact fee is established for development within the City to pay for the City's water distribution, collection and treatment facilities as shown in the adopted capital improvement program for facilities and equipment.
B. A sewage collection and treatment facilities impact fee is established for development within the City to pay for the sewage collection system and sewage treatment plant improvements and expansion as shown in the adopted capital improvement program for facilities and equipment.
C. The City Council shall, by resolution, set forth the specific amount of the fee, describe the benefit and impact area on which the development fee is imposed, list the specific public improvements to be financed, describe the estimated cost of these facilities, describe the reasonable relationship between this fee and the various types of new developments and set forth time for payment. On an annual basis, the City Council shall review this fee to determine whether the fee amounts are reasonably related to the impacts of developments and whether the described public facilities are still needed.
14.33.040 Use.
The revenues raised by payment of this fee shall be placed in a separate and special account and such revenues, along with any interest earnings on that account, shall be used solely to:
A. Pay for the City's future facilities described in the resolution enacted pursuant to this chapter, or to reimburse the City for those described or listed facilities constructed by the City with funds advanced by the City from other sources, or B. Reimburse developers who have been required or permitted by this section, to install such listed facilities which are oversized with supplemental size, length or capacity.
14.33.050 Developer construction.
A. Whenever a developer is required, as a condition of approval of a development permit, to construct a public facility described in a resolution adopted pursuant to this section which facility is determined by the City to have supplemental size, length or capacity over that needed for the impacts of that development, and when such construction is necessary to ensure efficient and timely construction of the 15-84
facilities network, a reimbursement agreement with the developer and a credit against the fee, which would otherwise be charged pursuant to the ordinance codified in this section on the development project, shall be offered to the developer.
B. The reimbursement amount shall not include the portion of the improvement needed to provide services or mitigate the need for the facility or the burdens created by the development.
14.33.060 Adjustments.
A. A developer of any new development subject to the fees described in this chapter may apply to the City Council for a reduction or adjustment to that fee(s), or a waiver of that fee(s), based upon the absence of any reasonable relationship or nexus between the sewage collection and treatment facilities and/or water system impacts of that development and either the amount of the fee charged or the type of facilities to be financed.
B. A separate application shall be filed for each adjustment request made pursuant to this section. Such application shall be made on a form provided by the City Clerk and shall be filed with the City Clerk not later than:
1. Thirty (30) days prior to the first public hearing on the discretionary permit application for the development project, or
2. If no discretionary permit application is required, within thirty (30) days of filing for a building permit. A building permit for any phase of construction (including grading, demolition, or new construction) shall not be issued until a determination of the base fees is final.
C. The application shall state in detail the factual basis for the claim of waiver, reduction, or adjustment. The burden of proof shall be on the applicant to establish that the applicant is not subject to the imposition of the full development impact fee(s) pursuant to the applicable development impact fee ordinance and applicable state law.
D. The City Council shall consider the application at the public hearing on the permit application or at a separate hearing held within sixty (60) days after the filing of the fee adjustment application, whichever is later. The decision of the City Council shall be final.
E. If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment or reduction of the fee. 15-85
Attachment C
Ordinance No. 2024-31
15-86
ORDINANCE NO. 2024-31
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADDING CHAPTER
15.43 (RECREATION FACILITIES IMPROVEMENT FEE)
TO THE NEWPORT BEACH MUNICIPAL CODE
AUTHORIZING COLLECTION OF DEVELOPMENT
IMPACT FEES FOR RECREATION FACILITIES
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California;
WHEREAS, cities may apply fees for proposed developments to cover the cost of public facilities by way of its police power as codified in the California Constitution Article XI Section 7;
WHEREAS, California Government Code Section 66000 et seq. ("Mitigation Fee Act") authorizes the City to collect fees in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project;
WHEREAS, development impact fees must be supported by a nexus study which calculates the purpose of the fee, the use to which it will be put, the relationship between the fee's use and the development, and establish the need for the fee pursuant to the Mitigation Fee Act;
WHEREAS, the Community Development Department commissioned a development impact fee nexus study with Willdan Financial Services; WHEREAS, the City's 61h Cycle Housing Element projects an increase in the population, residential dwelling units, and employment in Newport Beach; WHEREAS, this future residential and nonresidential growth will create additional demand on the City's infrastructure for recreation facilities; 15-87
Ordinance No. 2024-
WHEREAS, the City's current recreational facilities inventory is comprised of various community centers, senior centers, junior lifeguard facility, and harbor facilities to serve the community;
WHEREAS, Chapter 15.43 (Recreation Facilities Improvement Fee) authorizes the City to collect development impact fees for recreation facilities to cover the cost of developing additional recreational facilities necessitated by new development; and WHEREAS, a duly noticed public hearing was held by the City Council on November 12, 2024, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and the Mitigation Fee Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows:
Section 1: Chapter 15.43 (Recreation Facilities Improvement Fee) is hereby added to the Newport Beach Municipal Code as set forth in Exhibit "A," which is attached hereto and incorporated by reference.
Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance.
Section 3: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Ordinance No. 2024-
Section 4: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Section 5: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. 15-89
Ordinance No. 2024-
Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption.
This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 12th day of November, 2024, and adopted on the 10th day of December, 2024, by the following vote, to -wit:
Tyd:&I
NAYS:
ABSENT:
ATTEST:
WILL O'NEILL, MAYOR
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
RP, CITYWTTORNEY
Attachment: Exhibit A — Chapter 15.43 (Recreation Facilities Improvement Fee) 15-90
Exhibit A
Chapter 15.43
RECREATION FACILITIES IMPROVEMENT FEE
Sections:
15.43.010 Purpose.
15.43.020 Definitions.
15.43.030 Established.
15.43.040 Use.
15.43.050 Developer construction.
15.43.060 Adjustments.
15.43.010 Purpose.
A. To implement the goals and objectives of the capital improvement program for facilities and equipment of the City of Newport Beach, and to mitigate the impacts to the City's recreational facilities caused by new development in the City, certain public facilities and equipment must be constructed and/or acquired. The public facilities and equipment are specifically identified in the City's capital improvement program for facilities and equipment as adopted by the City Council and as amended from time to time. The list of recreational facilities and equipment may be added to or deleted from the approved program. The City Council has determined that a development impact fee is needed to finance these public improvements and to pay for the development's fair share of the costs of these improvements.
B. In establishing the fee described in this chapter, the City Council has found the fee to be consistent with its general plan and, pursuant to Govt. Code Section 65913.2, has considered the effects of the fee with respect to the City's housing needs as established in the Housing Element of the General Plan.
15.43.020 Definitions.
In this chapter, unless the context otherwise requires:
"Cost of improvements" means all costs related to acquisition, construction, repair and financing, but does not include costs of routine maintenance. "New development" means any residential or nonresidential (nonresidential includes commercial, office, and industrial) construction project except as specifically exempted in this chapter or by resolution establishing the fee.
"Recreational facility" means capital improvements related to the buildings, furnishings, vehicles, equipment, software, and similar facilities utilized for recreational purposes.
15-91
15.43.030 Established.
A. A recreation facility impact fee is established on issuance of all building permits, for development within the City to pay for the City's buildings, furnishings, vehicles, equipment and similar facilities utilized for recreational purposes as shown in the adopted capital improvement program for facilities and equipment.
B. The City Council shall, in a council resolution, set forth the specific amount of the fee, describe the benefit and impact area on which the development fee is imposed, list the specific public improvements to be financed, describe the estimated cost of these facilities, describe the reasonable relationship between this fee and the various types of new developments and set forth time for payment. On an annual basis, the City Council shall review this fee to determine whether the fee amounts are reasonably related to the impacts of developments and whether the described public facilities are still needed.
15.43.040 Use.
The revenues raised by payment of this fee shall be placed in a separate and special account and such revenues, along with any interest earnings on that account, shall be used solely to:
A. Pay for the City's future facilities described in the resolution enacted pursuant to this chapter, or to reimburse the City for those described or listed facilities constructed by the City with funds advanced by the City from other sources, or B. Reimburse developers who have been required or permitted by this chapter, to install such listed facilities which are oversized with supplemental size, length, or capacity.
15.43.050 Developer construction.
A. Whenever a developer is required, as a condition of approval of a development permit, to construct a public facility described in a resolution adopted pursuant to this chapter which facility is determined by the City to have supplemental size, length, or capacity over that needed for the impacts of that development, and when such construction is necessary to ensure efficient and timely construction of the facilities network, a reimbursement agreement with the developer and a credit against the fee, which would otherwise be charged pursuant to the ordinance codified in this chapter on the development project, shall be offered to the developer.
B. The reimbursement amount shall not include the portion of the improvement needed to provide services or mitigate the need for the facility or the burdens created by the development.
15.43.060 Adjustments.
A. A developer of any new development subject to the fee described in this chapter may apply to the City Council for a reduction or adjustment to that fee, or a waiver of that fee, based upon the absence of any reasonable relationship or nexus between the 15-92
recreational impacts of that development and either the amount of the fee charged or the type of facilities to be financed.
B. A separate application shall be filed for each adjustment request made pursuant to this section. Such application shall be made on a form provided by the City Clerk and shall be filed with the City Clerk not later than:
Thirty (30) calendar days prior to the first public hearing on the discretionary permit application for the development project, or
2. If no discretionary permit application is required, within thirty (30) calendar days of filing for a building permit. A building permit for any phase of construction (including grading, demolition, or new construction) shall not be issued until determination of the base fees is final.
C. The application shall state in detail the factual basis for the claim of waiver, reduction, or adjustment. The burden of proof shall be on the applicant to establish that the applicant is not subject to the imposition of the full development impact fee(s) pursuant to the applicable development impact fee ordinance and applicable state law.
D. The City Council shall consider the application at the public hearing on the permit application or at a separate hearing held within sixty (60) days after the filing of the fee adjustment application, whichever is later. The decision of the City Council shall be final.
E. If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment or reduction of the fee. 15-93
Attachment D
Ordinance No. 2024-32
15-94
ORDINANCE NO. 2024-32
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADDING CHAPTER
15.44 (PUBLIC SAFETY DEVELOPMENT IMPACT FEE)
TO THE NEWPORT BEACH MUNICIPAL CODE
AUTHORIZING COLLECTION OF DEVELOPMENT
IMPACT FEES FOR POLICE AND FIRE SERVICE
FACILITIES
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California;
WHEREAS, cities may apply fees for proposed developments to cover the cost of public facilities by way of its police power as codified in the California Constitution Article XI Section 7;
WHEREAS, California Government Code Section 66000 et seq. ("Mitigation Fee Act") authorizes the City to collect fees in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project;
WHEREAS, development impact fees must be supported by a nexus study which calculates the purpose of the fee, the use to which it will be put, the relationship between the fee's use and the development, and establish the need for the fee pursuant to the Mitigation Fee Act;
WHEREAS, the Community Development Department commissioned a development impact fee nexus study with Willdan Financial Services; WHEREAS, the City's 6"' Cycle Housing Element projects an increase in the population, residential dwelling units, and employment in Newport Beach; WHEREAS, this future residential and nonresidential growth will create additional demand on the City's infrastructure for police and fire service facilities; 15-95
Ordinance No. 2024-
WHEREAS, the City's current police facilities consist of the police station, police vehicles, animal shelter, and equipment inventory that are utilized to protect the community;
WHEREAS, the City's current fire and life safety facilities consist of fire stations, apparatus and vehicles that are utilized to protect the community; WHEREAS, Chapter 15.44 (Public Safety Development Impact Fee) authorizes the City to collect development impact fees for police, fire and life safety services to cover the cost of developing additional police and fire facilities necessitated by new development to continue to protect the community; and
WHEREAS, a duly noticed public hearing was held by the City Council on November 12, 2024, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and the Mitigation Fee Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows:
Section 1: Chapter 15.44 (Public Safety Development Impact Fee) is hereby added to the Newport Beach Municipal Code as set forth in Exhibit "A," which is attached hereto and incorporated by reference.
Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance.
Section 3: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
15-96
Ordinance No. 2024-
Section 4: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Section 5: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. 15-97
Ordinance No. 2024-
Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption.
This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 12th day of November, 2024, and adopted on the 10th day of December, 2024, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
WILL O'NEILL, MAYOR
ATTEST:
LE[LANI I. BROWN, CITY CLERK
APPROVED AS TO (FORM:
CITY ATTORNEY'S OFFICE
AARON\O' HARP, CITY ATTORNEY
Attachment: Exhibit A — Chapter 15.44 (Public Safety Development Impact Fee) 15-98
EXHIBIT A
Chapter 15.44
Public Safety Development Impact Fees
Sections:
15.44.010
Purpose.
15.44.020
Definitions.
15.44.030
Established.
15.44.040 Use.
15.44.050 Developer construction.
15.44.060 Adjustments.
15.44.010 Purpose.
A. To implement the goals and objectives of the capital improvement program for facilities and equipment of the City of Newport Beach and to mitigate the impacts to the City police and fire services caused by new development in the City, certain public facilities and equipment must be constructed and/or acquired. The public facilities and equipment are specifically identified in the City's capital improvement program for facilities and equipment as adopted by the City Council and as amended from time to time. The list of police and fire service facilities may be added to or deleted from the approved program. The City Council has determined that a development impact fee is needed to finance these public improvements and to pay for the development's fair share of the costs of these improvements.
B. In establishing the fees described in this chapter, the City Council has found the fees to be consistent with its general plan and, pursuant to Govt. Code Section 65913.2, has considered the effects of the fee with respect to the City's housing needs as established in the Housing Element of the General Plan.
15.44.020 Definitions.
In this chapter, unless the context otherwise requires:
"Cost of improvements" means all costs related to acquisition, construction, repair and financing, but does not include costs of routine maintenance. "Fire service facilities" means capital improvements related to buildings, furnishings, vehicles, equipment, software, and similar facilities utilized by the City's fire department. "New development" means any residential or nonresidential (nonresidential includes commercial, office, and industrial) construction project except as specifically exempted in this chapter or by resolution establishing the fee.
"Police service facilities" means capital improvements related to buildings, furnishings, vehicles, equipment, software, and similar facilities utilized by the City's police departments.
15-99
15.44.030 Established.
A. A police service facilities impact fee is established for development within the City to pay for buildings, furnishings, vehicles, software, and equipment as shown in the adopted capital improvement program for facilities and equipment.
B. A fire service facilities impact fee is established for development within the City to pay for buildings, furnishings, vehicles, software, and equipment as shown in the adopted capital improvement program for facilities and equipment.
C. The City Council shall, in a council resolution, set forth the specific amount of the fee, describe the benefit and impact area on which the development fee is imposed, list the specific public improvements to be financed, describe the estimated cost of these facilities, describe the reasonable relationship between this fee and the various types of new developments and set forth time for payment. On an annual basis, the City Council shall review this fee to determine whether the fee amounts are reasonably related to the impacts of developments and whether the described public facilities are still needed.
15.44.040 Use.
The revenues raised by payment of the fire service facilities fee and/or the police service facilities fee shall be placed in a separate and special account and such revenues, along with any interest earnings on that account, shall be used solely to:
A. Pay for the City's future facilities described in the resolution enacted pursuant to this chapter, or to reimburse the City for those described or listed facilities constructed by the City with funds advanced by the City from other sources, or B. Reimburse developers who have been required or permitted by this chapter, to install such listed facilities which are oversized with supplemental size, length, or capacity.
15.44.050 Developer construction.
A. Whenever a developer is required, as a condition of approval of a development permit, to construct a public facility described in a resolution adopted pursuant to this chapter which facility is determined by the City to have supplemental size, length, or capacity over that needed for the impacts of that development, and when such construction is necessary to ensure efficient and timely construction of the facilities network, a reimbursement agreement with the developer and a credit against the fee, which would otherwise be charged pursuant to the ordinance codified in this chapter on the development project, shall be offered to the developer.
B. The reimbursement amount shall not include the portion of the improvement needed to provide services or mitigate the need for the facility or the burdens created by the development.
15.44.060 Adjustments.
A. A developer of any new development subject to the fees described in this chapter may apply to the City Council for a reduction or adjustment to the fee(s), or a waiver of that fee(s), based upon the absence of any reasonable relationship or nexus 15-100
between the police service and/or fire service impacts of that development and either the amount of the fee charged or the type of facilities to be financed.
B. A separate application shall be filed for each adjustment request made pursuant to this section. Such application shall be made on a form provided by the City Clerk and shall be filed with the City Clerk not later than:
1. Thirty (30) days prior to the first public hearing on the discretionary permit application for the development project, or
2. If no discretionary permit application is required, within thirty (30) days of filing for a building permit. A building permit for any phase of construction (including grading, demolition, or new construction) shall not be issued until a determination of base fees is final.
C. The application shall state in detail the factual basis for the claim of waiver, reduction, or adjustment. The burden of proof shall be on the applicant to establish that the applicant is not subject to the imposition of the full development impact fee(s) pursuant to the chapter and applicable state law.
D. The City Council shall consider the application at the public hearing on the permit application or at a separate hearing held within sixty (60) days after the filing of the fee adjustment application, whichever is later. The decision of the City Council shall be final.
E. If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment or reduction of the fee. 15-101
Attachment E
Comparison Survey
15-102
1I/W I LLDAN
Development Impact Fee Comparison Survey
Methodology
Willdan collected development impact fee schedules for fees charged under the Mitigation Fee Act for seven comparison cities. These comparison jurisdictions are:
• Beverly Hills
• Huntington Beach
• Irvine
• Laguna Beach
• Malibu
• San Clemente
• Santa Monica
Willdan collected data regarding one-time fees and charges charged by the cities used to fund infrastructure and facilities related to new development. Note that this comparison excludes transportation -related impact fees and Quimby fees in -lieu of land dedication, since the City is not updating those fees as part of this effort. Impact fees are not standardized and are assessed by various units of development by different jurisdictions. To create a meaningful comparison of impact fees, Willdan calculated the fees for six prototype projects. Table 1 presents the project prototype assumptions used in this analysis.
Table 1: Prototype Assumptions
Water Meter
Type Units Sq. Ft. Size
Sinqle Family Unit 1 2,500
4 Bedroom
Multifamily Prototype
- Apartments
Studio
40 515
1 Bedroom
126
755
2 Bedroom
63 1,259
Total
229
194,984
Multifamily Prototype
- Condos
2 Bedroom
27 1,634
3 Bedroom
40 2,636
Total
67 149,525
Retail/Commercial
N/A
5,500 1.51,
Medical Office
N/A 20,000 3"
Mixed Use
Residential
3 2,200
3 Bedroom
Commercial
2,600 1.5"
October 24, 2024
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1I/W I LLDAN
Results
Tables 2 through 7 display the fee companions for each prototype, respectively. Some jurisdictions charge impact fees that vary by project location. In these cases, the tables show the range of potential impact fees. Figures 1 through 6 accompany the tables and illustrate the results in bar graphs.
October 24, 2024
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Table 2: Single Family Unit Prototype - 2,500 Square Feet DRAFT
Newport
Fee Category Beach
Beverly
Hills
Huntington
Beach
Irvine Irvine
Low) (High)'
Laguna
Beach
Malibu
San San
Clemente Clemente
(Low )2 (High )2
Santa
Monica
Art in Public Places3 $ -
$ -
$ -
$ - $ -
$ -
$ -
$ - $ -
$ -
Child Care -
-
-
- -
-
-
- -
185
General Government -
-
-
- -
-
-
648 648
-
Fire 4,325
-
844
- -
-
-
- -
-
Infrastructure -
-
-
- 18,054
-
-
- -
-
Libraries -
-
1,180
- -
200
-
- -
-
Parking3 -
-
-
- -
-
-
- -
-
Parks 4 -
-
16,555
- -
-
4,968
- -
10,169
Police 2,525
-
362
- -
-
-
1,883 1,883
-
Recreation 11,750
-
-
- -
-
-
- -
-
Sewer 2,250
-
2,594
- -
4,722
-
- -
-
Storm Drain -
-
-
- -
-
-
60 5,633
Water 1,400
-
2,862
- -
5,151
-
3,156 3,156
-
$ -
$ 24,397
$ 10,073
$ 4,968
$ 10,355
Total - per Prototype $ 22,250
$ - $ 18,054
$ 5,747 $ 11,320
Irvine Infrastructure Fees apply only to the "Irvine Business Complex" area 2 San Clemente Storm Drain fees vary by project location. 3 Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite. 4 Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table.
October 24, 2024
15-105
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
W�W I LLDAN
Figure 1: Single Family Unit Prototype - 2,500 Square Feet Beverly Irvine Malibu San Laguna
Hills (Low) Clemente Beach
(Low)
October 24, 2024
Santa San Irvine Newport
Monica Clemente (High) Beach
(High) (Maximum
Justified)
Huntington
Beach
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Table 3: Multifamily Prototype - 229 Apartments
DRAFT
Fee Category Newport Beach
Beverly
Hills
Huntington
Beach
Irvine Irvine
(Low) (High)'
Laguna
Beach
Malibu
San San
Clemente Clemente
(Low)2 (High)2
Santa
Monica
Art in Public Places3 $ -
$ -
$ -
$ - $ -
$ -
$ -
$ $ -
$ -
Child Care -
-
-
- -
-
-
-
42,463
General Government -
-
-
- -
-
-
148,429 148,429
-
Fire 337,322
-
80,116
- -
-
-
- -
-
Infrastructure -
-
- 4,134,366
-
-
-
-
Libraries -
198,424
- -
45,800
-
- -
-
Parking3 -
-
- -
-
-
- -
-
Parks4 -
2,915,820
- -
-
723,411
- -
1,261,996
Police 196,934
170,944
- -
-
-
431,180 431,180
-
Recreation 916,425
-
- -
-
-
- -
-
Sewer 175,486
485,741
- -
876,383
-
- -
-
Storm Drain -
-
- -
-
-
3,817 184,280
-
Water 109,191
655,398
- -
1,179,579
-
722,724 722,724
_
$ -
$4,506,443
$ 2,101,762
$723,411
$ 1,304,460
Total - per Prototype $ 1,735,358
$ - $4,134,366
$ 1,306,149 $ 1,486,612
Irvine Infrastructure Fees apply only to the "Irvine Business Complex" area San Clemente Storm Drain fees vary by project location.
Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite. "Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table.
October 24, 2024
15-107
Figure 2: Multifamily Prototype - 229 Apartments
$ 5, 000, 000
$4,500,000
$4,000,000
$3,500,000
$ 3, 000, 000
$2,500,000
$ 2, 000, 000
$1,500,000
$1, 000, 000
$500,000
Beverly Irvine Malibu
Hills (Low)
October 24, 2024
W�W I LLDAN
Santa San San Newport Laguna Irvine Huntington
Monica Clemente Clemente Beach Beach (High) Beach
(Low) (High) (Maximum
Justified)
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Table 4: Multifamily Prototype - 67 Condominiums
DRAFT
Newport
Fee Category Beach
Beverly
Hills
Huntington
Beach
Irvine Irvine
(Low) (High)'
Laguna
Beach
Malibu
San San
Clemente Clemente
(Low)2 (High)2
Santa
Monica
Art in Public Places3 $ -
$ -
$
$ - $
$ -
$
$ - $ -
$
Child Care -
-
-
-
- -
12,424
General Government -
-
-
-
43,427 43,427
-
Fire 258,677
-
23,440
-
-
- -
Infrastructure -
-
-
- 1,209,618
-
-
Libraries -
-
58,054
- -
13,400
-
Parkin g3 -
-
-
-
-
-
-
Parks' -
-
853,100
-
-
211,653
- -
369,230
Police 151,020
-
50,014
-
-
-
126,153 126,153
-
Recreation 702,765
-
-
-
-
- -
Sewer 134,572
-
142,116
-
256,409
- -
Storm Drain -
-
-
-
-
1,117 53,916
Water 83,734
-
191,754
-
345,117
-
211,452 211,452
-
$ -
$ 1,318,479
$ 614,926
$ 211,653
$ 381,654
Total - per Prototype $ 1,330,768
$ - $ 1,209,618
$ 382,148 $ 434,948
Irvine Intrastructure Fees apply only to the "Irvine business Complex" area San Clemente Storm Drain fees vary by project location.
Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite.
Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table.
October 24, 2024
15-109
$1,400,000
$1,200,000
$1,000,000
Beverly Irvine
Hills (Low)
uciooer L4, LUL4
Figure 3: Multifamily Prototype - 67 Condominiums
Malibu Santa
Monica
San San
Clemente Clemente
(Low) (High)
Laguna
Beach
W�W I LLDAN
Irvine Huntington Newport
(High) Beach Beach
(Maximum
Justified)
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W�W I LLDAN
Table 5: Retail/Commercial Prototype - 5,500 Square Feet DRAFT
Newport
Fee Category Beach
Beverly
Hills
Huntington
Beach
Irvine
Laguna
Beach
Malibu
San San
Clemente Clemente
(Low)' (High)'
Santa
Monica
Art in Public Places2 $ -
$ -
$ -
$ -
$ -
$ -
$ - $ -
$ -
Child Care -
-
-
-
-
-
- -
34,595
General Government -
-
-
-
-
-
- -
-
Fire 10,010
-
1,656
-
-
-
- -
-
Infrastructure -
-
-
-
-
-
- -
-
Libraries -
-
-
-
-
-
- -
-
Parking2 -
-
-
-
-
-
- -
-
Parks3 -
-
4,934
-
-
-
- -
10,945
Police 4,070
-
5,242
-
-
-
2,581 2,581
-
Recreation -
-
-
-
-
-
- -
-
Sewer 5,005
-
8,844
-
13,722
-
- -
-
Storm Drain -
-
-
-
-
-
330 3,098
-
Water 3,850
-
8,585
-
21,121
-
5,775 5,775
-
$ -
$ 29,260
$ -
$ 34,843
$ -
$ 45,540
Total - per Prototype $ 22,935
$ 8,686 $ 11,454
'San Clemente Storm Drain fees vary by project location. `Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite.
Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table.
October 24, 2024
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Figure 4: Retail/Commercial Prototype - 5,500 Square Feet $50,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
Beverly Irvine
Hills (Low)
October 24, 2024
Malibu
San
Clemente
(Low)
San
Clemente
(High)
Newport
Beach
(Maximum
Justified)
Huntington Laguna Santa
Beach Beach Monica
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Table 6: Medical Office Prototype - 20,000 Square Feet
DRAFT
Newport
Fee Category Beach
Beverly
Hills
Huntington
Beach
Irvine
Laguna
Beach
Malibu
San San
Clemente Clemente
(Low)' (High)'
Santa
Monica
Art in Public Places2 $ -
$ -
$ -
$ -
$ -
$ -
$ - $ -
$ -
Child Care -
-
-
-
-
-
- -
176,000
General Government -
-
-
-
-
-
- -
-
Fire 55,800
-
6,020
-
-
-
- -
-
Infrastructure -
-
-
-
-
-
- -
-
Libraries -
-
-
-
-
-
- -
-
Parking2 -
-
-
-
-
-
- -
-
Parks3 -
-
17,940
-
-
-
- -
61,600
Police 22,800
-
-
-
-
-
9,384 9,384
-
Recreation -
-
-
-
-
-
- -
61,600
Sewer 12,400
-
32,434
-
49,648
-
- -
-
Storm Drain -
-
-
-
-
-
1,200 11,266
-
Water 10,200
-
31,475
-
55,838
-
21,000 21,000
-
$ -
$ 87,869
$ -
$ 105,486
$ -
$ 299,200
Total - per Prototype $ 101,200
$ 31,584 $ 41,650
'San Clemente Storm Drain fees vary by project location.
Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite.
Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table.
October 24, 2024
15-113
Figure 5: Medical Office Prototype - 20,000 Square Feet $350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
Beverly Irvine Malibu San San Huntington Newport
Hills Clemente Clemente Beach Beach
(Low) (High) (Maximum
Justified)
October 24, 2024
W�W I LLDAN
Laguna Santa
Beach Monica
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Table 7: Mixed Use Prototype - 3 Dwelling Units and 2,600 Square Feet of Commercial DRAFT
Newport
Fee Category Beach
Beverly
Hills
Huntington
Beach
Irvine Irvine
(Low) (High)'
Laguna
Beach
Malibu
San San
Clemente Clemente
(Low)2 (High)2
Santa
Monica
Art in Public Places3 $
$
$ -
$ - $
$
$ -
$ - $
$ -
Child Care
-
-
-
-
16,910
General Government
-
-
-
1,944 1,944
-
Fire 16,150
1,832
-
-
- -
-
Infrastructure -
-
- 54,162
-
-
-
Libraries
2,599
- -
600
-
-
-
Parking3
-
-
-
-
-
-
Parks4 -
40,531
-
9,477
- -
21,707
Police 8,590
4,717
-
-
6,869 6,869
-
Recreation 31,020
-
-
-
- -
-
Sewer 8,306
15,208
-
17,968
-
- -
-
Storm Drain -
-
-
-
-
600 5,633
Water 5,516
17,171
36,574
19,968 19,968
$
$ 82,058
$ 55,142
$ 9,477
$ 38,617
Total - per Prototype $ 69,582
$ - $ 54,162
$ 29,381 $ 34,414
Irvine Infrastructure Fees apply only to the "Irvine Business Complex" area San Clemente Storm Drain fees vary by project location.
Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite. " Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table.
October 24, 2024
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Figure 6: Mixed Use Prototype - 3 Dwelling Units and 2,600 Square Feet of Commercial $90,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
Beverly Irvine Malibu
Hills (Low)
October 24, 2024
San Huntington Santa San Irvine Newport Laguna
Clemente Beach Monica Clemente (High) Beach Beach
(Low) (High) (Maximum
Justified)
15-116