CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
6/13/2022
1 SUBJECT:
Public Hearing on Proposed Ordinances adding Sections 7-2.214 (Utility Pavement Cut Recovery Fee) of Title 7 and Chapter 21 (Construction Vehicle Impact Fee) of Title 8 of the Pacifica Municipal Code and adoption of Resolution setting rates for the Utility Pavement Cut Recovery Fee and Construction Vehicle Impact Fee.
RECOMMENDED ACTION:
1. Move to Waive the First Reading of and Introduce by Title an Ordinance of the City Council of the City of Pacifica Establishing a Utility Pavement Cut Recovery Fee and finding the Ordinance exempt under the California Environmental Quality Act (“CEQA”).
2. Move to Waive the First Reading of and Introduce by Title an Ordinance of the City Council of the City of Pacifica Establishing a Construction Vehicle Impact Fee and finding the Ordinance exempt under the California Environmental Quality Act (“CEQA”).
3. Adopt resolution entitled A Resolution of the City Council of the City of Pacifica Setting Rates for the Utility Pavement Cut Recovery Fee and the Construction Vehicle Impact Fee and Adding both Fees to the City’s Master Fee Schedule.
STAFF CONTACT:
Ryan Marquez, Associate Engineer
(650) 738-3769
[email protected]
Lisa Petersen, Director of Public Works
(650) 738-3770
[email protected]
BACKGROUND/DISCUSSION:
The City of Pacifica is responsible for maintaining over 90 centerline miles of street pavement.
The City currently has the lowest pavement condition index (PCI) score of the one hundred and one (101) bay area cities and faces a growing deficit in needed pavement maintenance and rehabilitation funding. At the October 12, 2020 City Council meeting, staff provided Council an update on the overall condition of the City’s pavements based on the City’s 2019 Pavement Condition Index Report (also known as the Budget Options Report). At this meeting, Council approved the City’s 5-year Street Maintenance Program. Although the program addresses a number of streets with seal coat treatments and provides a few asphalt overlays, the program funding level will not stop the continued decline of the City’s overall pavement condition. At the same Council meeting, Council approved an agreement with NCE Consulting Engineers to provide a study that reviewed the costs to the City related to of utility pavement cuts and construction/waste trucks on the City’s street network to develop a proposed fee related to any damage caused by these activities.
Staff returned to City Council with a study session on March 14, 2022 to present the findings and initial recommended fee structure for implementing fees for damage caused by utility pavement cuts and heavy construction vehicle impacts. Staff again discussed the fees related to Pacifica City Council 2
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utility cuts and construction vehicle impacts during the City budget, CIP, and Master Fee schedule presentation at the May 23, 2022 City Council meeting.
Utility Pavement Cut Recovery Fees
Study and quantification of the damage of utility cuts on road and street performance has been occurring for over 30 years. Public agencies, as well as utility companies, have sponsored engineering investigations and studies to quantify the impact of utility cuts on pavement performance and estimate the financial cost. NCE Consulting completed a study of the impact of utility cuts to Pacifica’s pavements (Attachment 1). The purpose of this study was to compare pavement performance for the street sections with and without cuts, quantify damage caused by utility cuts to the pavements within the City and develop a fee schedule for the City to recover any costs associated with such damage.
To accomplish this, NCE looked at both the structural and functional deterioration of pavements due to utility pavement cuts. The field evaluation included selecting sixteen sites on city streets of different ages. Deflection testing using a falling weight deflectometer (FWD) was conducted to assess loss of structural capacity due to cuts. In addition, the City’s StreetSaver® database, which contains 15 years of pavement distress data and thousands of data points with a wide range of pavement age and conditions, was analyzed to assess the impact of utility cuts. The findings from the study included:
• Pavements with cuts of any size deteriorate more than pavements without cuts across all pavement age groups (0-5 years, 6-10 years, 11-15 years and >15years).
The exception is residential streets older than 10 years with small cuts (cut area <10% of section area), however; the cumulative effect of multiple small cuts is equivalent to a section with large cuts.
• On average, the PCI drops by 30% if the cut area is greater than 10% of the section area.
• Cuts do more damage to new (<10 years) pavements than older (≥10years) pavements. This results in an average percent reduction of the remaining service life of approximately 33% for new pavements and 17% for old pavements.
These findings were used to develop a fee schedule for the City of Pacifica that is shown in the equations and table below.
Utility Pavement Cut Fee (<10% Section Area) = ((Length+4')*(Width+4') * (Unit Cost))/(0.10) Utility Pavement Cut Fee (≥10% Section Area) = Full Block Area * Unit Cost Section Area and Full Block Area is defined as the full block area from the center of intersection to the center of intersection.
Age Group Unit Costs
<10% of Section Area ≥10% of Section Area
Arterials/Collectors <10 years $2.50 $4.00
≥10 years $1.50 $2.50
Residential <10 years $1.50 $3.00
≥10 years $1.00 $2.50
As noted previously, although individual small cuts show less significant difference, there is a cumulative impact from multiple small cuts. Over time, this impact will be equivalent to a section with large cuts (10% or greater). The fee calculation (as shown in the Study) accounts for this by having the small cuts pay a “fair share” for this cumulative effect by dividing the small cut fee total by 10%. Additionally, because pavement cuts cause “slumping” of the soil 2 feet beyond the cut area, this area also needs to be accounted for to assess the correct impact to the Pacifica City Council 3
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pavement. For example, a 4’x4’ cut has the impact of an 8’x8’ cut due to this slumping. The following is an example of a 4’x’4 pavement cut fee for a residential pavement 10 years old or older and would be typical for a sewer lateral replacement: $1 x (4+4) x (4+4)/0.1 = $640.
Heavy Construction Vehicle Impacts
The City completed a study (Attachment 2) related to the impacts of heavy construction vehicles on pavement longevity to determine what a correlated fee would be. The purpose of the study was to estimate the structural and therefore financial impact to the roadway from construction vehicles.
The Study identified local pavement quality, assumed a future PCI level increase over the next 15 years, and explained why that was appropriate and needed to conclude the fees for heavy vehicles. Furthermore, the City does periodic pavement surveys and reports to City Council on the quality of the City’s pavement in addition to scenario planning that includes: increasing PCI with an unconstrained budget, maintaining current PCI, increase PCI by 5 points, do nothing, or other target scenarios. From that report along with expected paving budget, a 5-year pavement plan was put together for 2020-25 and will be updated for 2026-2030 in the future.
The study considered impacts on City streets during construction of development projects by heavy construction vehicles traversing City streets to get back and forth from development projects. The impact of heavy construction vehicles to pavements from these trips has been studied by many cities and was included in the recent NCE pavement impact study for the City of Pacifica.
The study calculated damage to pavement caused by heavy construction vehicles during construction of development projects and developed a fee related to this damage. Estimating this damage cost for the study of heavy construction vehicles was completed by the following:
• Calculating the average cost per vehicle-mile traveled through conversion of yearly vehicle damage.
• Estimating the conservative number of vehicle trips/miles travelled to development sites. • Developing costs associated with square foot of construction.
Using this information, NCE’s report recommendation includes a per square foot price for residential, multi-family, and commercial developments of $1.19/square foot of new structure.
This would translate to a one-time fee of $2,126 for a new 1800 sf single family home or $952 for a new 800 sf multi-family unit.
Government Code section 66001 of the Mitigation Fee Act requires agencies to make certain findings before adopting new impact fees. Below are the required findings and required information.
• The purpose of the fee is to provide funds to restore City streets and pavements, which rapidly deteriorate as a result of the impacts of heavy construction vehicles associated with new development
• The fee will be used to pay for street and road maintenance and improvements related to the impacts of construction vehicles associated with new development. The projects that will be funded by the fee are identified in the City’s 5-year paving work plan that is then annually identified in the City’s Capital Improvement Program under the Annual Street Resurfacing and Rehabilitation Project.
• There is a reasonable relationship between the Construction Vehicle Impact Fees and the projects on which the fees will be imposed because, as demonstrated in the NCE fee study, the fees will only fund costs necessitated by each new development. There is a reasonable relationship between the need for the pavement improvements that will be funded by the Construction Vehicle Impact Fee revenues and the types of development Pacifica City Council 4
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projects on which the fee will imposed because those development projects require the use of heavy construction vehicles that damage the City’s streets and pavements, and the fees are limited to the amounts necessary to mitigate the impacts of that damage.
Exceptions
The Council can adopt reduced fees for all developments or for a certain type of development for a justifiable reason associated with a Council adopted policy. The policy does not need to be adopted before the reduced fees are adopted. Below are the recommend fee changes related to City development/construction priorities as noted below:
• Construction Vehicle Pavement Impact Fees and Utility Pavement Cut Fees for Accessory Dwelling Units (ADU) - Any ADU that is under 750 square feet shall not be charged a pavement impact fee or utility cut fee, per state law. Staff is recommending that both fees shall not be charged for an ADU of any size when the ADU is being constructed at the same time, under the same permit, as a new main residential unit or an expansion of the main unit that makes payment of the fees as required. Essentially, ADUs that are part of new construction won’t be included in the square footage calculation. The Council has also directed staff to evaluate policies to incentivize affordable housing production by reducing fees during the Housing Element development and implementation.
• Partially or Fully Credit Utility Pavement Cut Recovery Fees for Developments with Pavement Improvements - As a condition of approval, many new developments are required to pave the roadway in front of the development as a nexus for improving infrastructure adjacent to the development. Staff will recommend providing these developments a credit against their Utility Cut Fees for completing frontage roadway paving as this will mitigate the impacts of the utility cuts associated with the new development.
• Reduced Utility Cut Fees Related to Sewer Lateral Repairs Not Requiring a Lateral Compliance Certificate - Staff will recommend charging a minimal fixed fee ($500) for pavement cuts related to fixing a sewer lateral not requiring a Sewer Lateral Compliance Certificate. Lowering the fee for these types of repairs will prevent the fee from becoming an obstacle to needed sewer lateral replacement for cracked/broken laterals.
Staff recommends adoption of fees as noted above by staff and review of fees related to ADU’s/low-income housing during upcoming Housing Element meetings. During these meetings, all City fees that could impact building of low-income housing can be reviewed and discussed.
Ordinances & Resolution Needed
In order to codify these fees, City Council will need to update the Municipal Code with two new ordinances and adopt a resolution to set the fee schedule. The ordinance entitled an Ordinance of the City Council of the City of Pacifica Establishing a Utility Pavement Cut Recovery Fee (Attachment 3) codifies the utility pavement cut recovery fee and the ordinance entitled an Ordinance of the City Council of the City Of Pacifica Establishing a Construction Vehicle Impact Fee (Attachment 4) codifies the heavy construction vehicle impact fee. Lastly, the resolution entitled A Resolution of the City Council of the City of Pacifica Setting Rates for the Utility Pavement Cut Recovery Fee and the Construction Vehicle Impact Fee and Adding both Fees to the City’s Master Fee Schedule lays out the fee schedule for the two proposed fees.
It is therefore the City Manager's recommendation to waive the first reading and introduce by title an Ordinance of the City Council of the City of Pacifica Establishing a Utility Pavement Cut Recovery Fee and an Ordinance of the City Council of the City of Pacifica Establishing a Pacifica City Council 5
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Construction Vehicle Impact Fee and an Ordinance of the City Council of the City of Pacifica Establishing a Construction Vehicle Impact Fee. Furthermore, the City Manager recommends adoption of the resolution to set the fees for the Utility Pavement Cut Recovery Fee and Heavy Construction Vehicle Impact Fee.
CEQA:
This Ordinance is not subject to the California Environmental Quality Act (“CEQA”). This action is not a project within the meaning of the CEQA Guidelines Section 15378 and 15061(b)(3) as it has no potential for physical effects on the environment because it involves an adoption of certain fees and/or charges imposed by the City, does not commit the City to any specific project, and said fees and/or charges are applicable to future development projects and/or activities, each of which future projects and/or activities will be fully evaluated in full compliance with CEQA when sufficient physical details regarding said projects and/or activities are available to permit meaningful CEQA review (see CEQA Guidelines, Section 15004(b)(1)). Pursuant to CEQA Guidelines section 15378(b)(4), the creation of government funding mechanisms which do not involve any commitment to any specific project which may cause significant effect on the environment, is not defined as a “project” under CEQA. Therefore, approval of the fees and/or charges is not a “project” for purposes of CEQA, pursuant to CEQA Guidelines, Section 15378(b)(4); and, even if considered a “project” under CEQA, is exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that approval of the fees and/or charges may have a significant effect on the environment.
ALTERNATIVE ACTION:
Alternative action could be:
• Council may choose not to adopt one or both fees, however this option would mean that persons engaging in pavement damaging activities would not pay their fair share of the costs to mitigate that damage, and therefore is not recommended. • Council may direct staff to re-study the fees with specific direction on areas that they may need more information on. This alternative is also not recommended as it would need additional budget to perform, and staff believes the studies are adequate and the fees are fair.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Approval of these actions is consistent with the following Council adopted Goals:
• Stewardship of City Infrastructure: includes repairing/replacing outdated city facilities such as city hall, the libraries, fire stations, etc., improving streets, and responding to sea level rise. These fees will help maintain and improve the existing streets.
FISCAL IMPACT:
The completed Studies provide justification for the City to implement these fees as noted in the report. Staff has estimated heavy construction impact fees could range from $10,000 to $60,000 per year depending on development levels. Utility pavement cut fees could generate $100,000 to $200,000 per year depending on if large PG&E or telecom projects are completed.
For example, the large PG&E project recently completed on Oddstad and Terra Nova would have resulted in approximately $100,000 worth of utility pavement cut fees due to the extensive Pacifica City Council 6
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pavement cutting during the project. Should the City decide to charge these fees, the fees cannot exceed the amounts set forth in the Studies and the fees must be charged equally unless the Council has a justifiable policy basis for lowering the fee for certain types of fee payers, as noted earlier in the report. All fees generated from these will be used in the City’s annual Pavement Resurfacing Project.
ORIGINATED BY:
Engineering
ATTACHMENT LIST:
Attachment 1 - Utility Cut Impact Fee Report(PDF)
Attachment 2 - Heavy Vehicle Impact Fee Report (PDF)
Attachment 3 - Ordinance Adopting Utility Pavement Cut Recovery Fee (PDF) Attachment 4 - Ordinance Adopting Heavy Vehicle Impact Fee (PDF) Pacifica City Council 7
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RESOLUTION NO. ___-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA SETTING RATES
FOR THE UTILITY PAVEMENT CUT RECOVERY FEE AND THE CONSTRUCTION VEHICLE IMPACT FEE AND ADDING BOTH FEES TO THE CITY’S MASTER FEE SCHEDULE WHEREAS, the City of Pacifica Municipal Code (“PMC”) imposes upon all persons who excavate portions of the City’s pavement to service utility infrastructure the obligation to pay a Utility Pavement Cut Recovery Fee (PMC § 7-2.214 referred to herein as “Utility Cut Fee”); and WHEREAS, PMC section 7-2.214(b) empowers the City Council to establish the amount of the Utility Cut Fee by resolution; and
WHEREAS, the City contracted with NCE Consulting Engineers to study the impact of utility cuts on the City’s street network and to develop proposed fees related to these impacts; and
WHEREAS, NCE Consulting Engineers completed a study, in January 2022, to compare pavement performance for the street sections with and without cuts, quantify damage caused by utility cuts to the pavement within the City and to develop a fee schedule for the City to recover any costs associated with such damage (“Utility Cut Impact Fee Study”), which is attached to the staff report accompanying this resolution and incorporated herein by reference; and WHEREAS, the Utility Cut Impact Fee Study concluded that pavements with cuts of any size deteriorates more quickly than pavements without cuts across all pavement age groups, and therefore, utility cuts reduce the remaining service life of all pavement; WHEREAS, the City Council desires to ensure that persons engaging in utility cuts pay for the impacts to the City’s pavement; and
WHEREAS, the Utility Cut Impact Fee Study establishes that there is a reasonable relationship between the amount of the proposed Utility Cut Fee and the additional costs associated with repairing and maintaining pavement with utility cuts; and WHEREAS, the Utility Cut Fee adopted herein is considered a fee for the use of government Property pursuant to Article XIII C, section 1(e)(4), which excludes such fees from the definition of “tax;” and
WHEREAS, in the alternative, the Utility Cut Fee could also be exempt from the definition of “tax” under Article XIII C, section 1(e)(1) or (6); and WHEREAS, this Resolution does not conflict with provisions of State law, including but not limited to, Public Utilities Code sections 7901 and 12808 related to interstate telecommunications franchises because the fees hereunder are not charged for the same right granted by State law, but instead are charged to recover costs of mitigating the degradation that the excavation causes to City pavement and the increased cost to the City in reconstructing a street that has been patched following an excavation; and Pacifica City Council 8
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WHEREAS, this Resolution is in conformance with Section 253(C) of the Federal Telecommunications Act of 1996 which expressly recognizes the authority of local governments to impose reasonable nondiscriminatory fees upon telecommunications providers using the public right-of-way, as well as California Government Code 50030 which specifically authorizes the imposition of a permit fee that do not exceed the reasonable costs of providing the service for which the fee is charged; and
WHEREAS, the PMC requires that all individuals who obtain a building permit must pay a Construction Vehicle Impact Fee (PMC Chapter 8-21 referred to herein as “Construction Vehicle Impact Fee”); and
WHEREAS, Section 8-21.04 empowers the City Council to establish the amount of the Construction Vehicle Impact Fee by resolution; and
WHEREAS, NCE Consulting Engineers also completed a study to investigate damage caused to City streets by heavy construction vehicles related to the construction of development projects (“Construction Vehicle Impact Fee Study”), which is attached to the staff report accompanying this resolution and incorporated herein by reference; and WHEREAS, with regard to the impact of construction vehicles, the Construction Vehicle Impact Fee Study found that such vehicles contribute to the damage to City streets by reducing the life of the pavement; and
WHEREAS, the Construction Vehicle Impact Fee is necessary to address the impacts of construction vehicles on City roads; and
WHEREAS, this Resolution is in conformance with Vehicle Code section 9400.8 because it is a fee charged as a condition of development, not a fee for the use of City roads; and
WHEREAS, the Construction Vehicle Impact Fee is exempt from the definition of “tax” under Article XIII C, section 1(e)(6) because it is a charge imposed as a condition of property development; and
WHEREAS, the Construction Vehicle Impact Fee Study establishes that there is a reasonable relationship between the amount of the proposed Construction Vehicle Impact Fee and the costs of remedying the impacts to the City’s pavement caused by construction vehicles; and
WHEREAS, the staff report includes information that supports the City’s actions, as required by subdivision (a) of Section 66001 of the Government Code; and WHEREAS, the Construction Vehicle Impact Fee Study substantiates a methodology that will charge each new development project only for the costs necessary to mitigate the impacts expected to be caused by that development project; and
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WHEREAS, there is a reasonable relationship between the Construction Vehicle Impact Fees and the development projects on which the fees will be imposed because the fees will only fund costs necessitated by each new development; and WHEREAS, the Construction Vehicle Impact Fees will not exceed the estimated reasonable costs of providing the infrastructure improvements for which the fees are imposed; and
WHEREAS, the Construction Vehicle Impact Fees will not be levied, collected, or imposed for general revenue purposes, but are levied specifically to fund the restoration of the City’s pavement related to the impact of construction vehicles; and WHEREAS, the Construction Vehicle Impact Fee Study establishes proposed amounts and provides an evaluation of the need for new Construction Vehicle Impact Fees and establishes the nexus between the imposition of the new fees and the estimated reasonable costs of providing the services for which the fees are charged; and
WHEREAS, the Construction Vehicle Impact Fee Study identifies the City’s existing level of pavement quality, identifies the proposed new level of service, and includes an explanation of why the new level of service is appropriate; and WHEREAS, pursuant to Government Code section 66018 the enactment or increase in any fees to be charged for services must be adopted by the City Council by ordinance or resolution, after providing notice and holding a public hearing; and, WHEREAS, pursuant to Government Code sections 66018 and 6062a, a notice of a public hearing on the proposed fee schedule, including the proposed Utility Pavement Cut Recovery Fee and the proposed Construction Vehicle Impact Fee, was published on June 1, 2022 and June 8, 2022 in the Pacifica Tribune a newspaper of general circulation; and WHEREAS, pursuant to Government Code sections 66016 and 66016.5, notice of the time and place of the meeting, including a general explanation of the matters to be considered and a statement that required data is available was mailed at least 30 days prior to the meeting to those members of the public who filed a written request with the City; and WHEREAS, a duly noticed public hearing before the City Council was held on June 13, 2022 at which public testimony was received and duly considered on the proposed new fees; and
WHEREAS, at least ten (10) days prior to the public hearing referenced above, the City made available for public inspection information required under Government Code section 66018; and
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Pacifica hereby resolves as follows:
Section 1. Findings. The City Council finds and determines as follows:
a) The fees established are imposed for a specific government service provided directly to the payor and/or for the use of government property.
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b) The above recitals are correct and are material to this Resolution and are incorporated into this Resolution as findings of the City Council.
c) These fees are not subject to the requirements of Proposition 26. The fees are not a “tax” under Section 1(e) of Article XIII C of the California Constitution, since they do not exceed the reasonable costs to the City of providing the service or product or the City’s costs to address the impacts of development projects.
Section 2. Adoption of Fee Reports. The City Council approves and adopts the Utility Cut Impact Fee Study and the Construction Vehicle Impact Study and determines that they are consistent with the General Plan.
Section 3. Master Fee Schedule. The Utility Cut Impact Recovery Fee and the Construction Vehicle Impact Fee are hereby adopted at the rates set forth in Exhibit A and Exhibit B, respectively, which are attached hereto and incorporated by this reference. The new fees shall be incorporated into the Master Fee Schedule.
Section 4. Effective Date. This Resolution shall take effect 60 days after its adoption and shall be published or posted as required by law.
Section 5. Validity. The above recitations are true and correct, are material to the adoption of this Resolution, and are incorporated herein by reference.
Section 6. Environmental review. The City Council finds that this Resolution is not subject to the California Environmental Quality Act (“CEQA”). This action is not a project within the meaning of the CEQA Guidelines Section 15378 and 15061(b)(3) as it has no potential for physical effects on the environment because it involves an adoption of certain fees and/or charges imposed by the City, does not commit the City to any specific project, and said fees and/or charges are applicable to future development projects and/or activities, each of which future projects and/or activities will be fully evaluated in full compliance with CEQA when sufficient physical details regarding said projects and/or activities are available to permit meaningful CEQA review (see CEQA Guidelines, Section 15004(b)(1)). Pursuant to CEQA Guidelines section 15378(b)(4), the creation of government funding mechanisms which do not involve any commitment to any specific project which may cause significant effect on the environment, is not defined as a “project” under CEQA. Therefore, approval of the fees and/or charges is not a “project” for purposes of CEQA, pursuant to CEQA Guidelines, Section 15378(b)(4); and, even if considered a “project” under CEQA, is exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that approval of the fees and/or charges may have a significant effect on the environment.
Section 7. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase of this Resolution be declared unconstitutional or invalid for any reason, such declaration shall not affect the validity of the remaining portions of this Resolution.
The City Council hereby declares that it would have passed this and each section, subsection, phrase, or clause thereof irrespective of the fact that any one or more sections, subsections, phrase, or clauses be declared unconstitutional on their face or as applied.
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Section 8. The City Clerk shall certify the adoption of this Resolution and shall cause a certified Resolution to be filed in the Office of the City Clerk. • • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the day of 2022, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
Mary Bier, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney Pacifica City Council 12 June 13, 2022
EXHIBIT A