City of Pismo Beach
Development Impact Fee Nexus Study Update
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What is a Development Impact Fee ?
One-time charge
Imposed at building permit stage
Imposed on all development projects
within a defined geographic area
Funds facilities to serve new development
Mitigation Fee Act Findings ( Gout . Code § 66001 ) ■ Key findings
- Need: Development creates need for facilities
Benefit: Development use of revenue
Rough Proportionality: Fee amount development's
share of facility costs (i.e. proportional to demand) ■ Other findings �
Purpose of fee
Use of fee revenue
3 AB 602
■ Requires local jurisdictions to make certain ■ Technical changes:
information available on website : Residential fees should be charged Current impact fee schedule per square foot, unless findings are Nexus studies supported that justify another Annual AB1600 reports metric
Five-Year AB1600 reports Large jurisdictions shall adopt a p capital improvement Ian as a art
p p p p
■ Changes to impact fee adoption process: of the nexus study Prior to adoption of development fees, Nexus study should identify level of an impact fee nexus study needs to be service
adopted with 30 days notice If fees are increasing, review the assumptions of the original nexus
study and evaluate the amount of
fees collected under the original fee
Impact Fees - Basic Methodology
ESTIMATE IDENTIFY FACILITY DETERMINE NEW ALLOCATE SHARE EXISTING STANDARDS FACILITY NEEDS TO DEVELOPMENT AND COSTS ACCOMMODATE
AND FUTURE GROWTH
GROWTH
IDENTIFY CALCULATE FEE BY
ALTERNATIVE ALLOCATING
FUNDING NEEDS COSTS PER UNIT
OF NEW
DEVELOPMENT
5 Impact Fee Categories
■ General Government ■ Recycled Water (Water) ■ Police Facilities ■ Recycled Water (Wastewater) ■ Fire Protection Facilities ■ Circulation Facilities ■ Parks - Land Acquisition
(Qu i m by)
■ Park Improvements
■ Wastewater
■ Wate r Syste m I m p rove m e nts
■ State Water Supply
Growth Projections
Residents 7,830 81576 746
Dwelling Units 51887 61313 426 Jobs 3,385 41415 11030
Lodging Units 2,622 31501 879
Sources: California Department of Finance (DOF) Table E-5, 2024; OnTheMap; 2050 Regional Growth Forecast for San Luis Obispo County, SLOCOG; City of Pismo Beach 2020-2028 Housing Element; Willdan Financial Services.
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Cost Allocation Methods :
WHAT Facilities Serve WHO
EXISTING INVENTORY PLANNED FACILITIES
Existing Facilities Planned Facilities
Existing Demand New Demand
SYSTEM PLAN
Existing + Planned Facilities
Existing + New Demand
Fee Program Methodologies
irExisting System Plan Planned
Standardl 6 Facilities
General
Fire Government
Parks
Police Circulation
Wastewater
Recycled Water
Water
Major Planned Facilities
Sewer Facilities
General Government Facilities ■ Advanced Metering Infrastructure ■ Technology Master Plan Improvements ■ Sunset and Pismo Oaks Lift Station ■ Energy Efficiency Project New CREBs ■ Advanced Metering Infrastructure Police Facilities ■ Sludge Dewatering ■ Camera System ■ Share of Debt Service
■ IT Improvements Water Facilities
■ Share of Public Safety Facility ■ Bello-Price/Hwy 101 Waterline Upgrade Fire Facilities ■ New Production Well
■ Share of Public Safety Facility ■ Advanced Metering Infrastructure Parks ■ Water Operations Building Addition ■ Land and improvements to 5.0 acre per 1,000 Traffic and Circulation resident standard ■ Downtown parking structure Recycled Water ■ Shell Beach Multi Use Path ■ Central Coast Blue Project ■ Dolliver Price Streetscape
Factors Driving Changes to Fee Levels
■ New capital projects and costs:
Public Safety Facility
Central Coast Blue
IT Master Plan
Land value assumptions
■ Updated land use assumptions:
Growth projections
Occupant density assumptions
■ Updated demand factors:
Trip generation rates
Worker weighting factors for police and fire based on call data ■ AB 602 now requires residential impact fees to be charged per square foot Fil
Planned Facilities Total Cost Summary
Projected
CategoryImpact Fee Additional
Fee AMMM
• Revenue . Funding Required
General Government Facilities $ 2,220,069 $ 2,220,069 $ - Police Facilities 45,557,968 7,033,344 38,524,624 Fire Protection Facilities 19,429,362 5,262,000 14,167,362 Parks - Land Acquisition (Quimby) 8,524,542 8,524,542 - Park Improvements 6,635,107 6,635,107 - Wastewater Facilities 9,722,021 1,522,589 8,199,432 Water System Improvements 111106,211 1,808,600 9,297,611 State Water Supply 89,898,796 17,505,900 72,392,896 Recycled Water (Water) 11.1443,245 8,179,600 3,263,645 Recycled Water (Wastewater) 23,233,255 16,284,400 6,948,855 Traffic Facilities 88,072,698 12,775,370 75,297,328 Total $315,843,274 $8717511520 $228,091,753 1 Total project cost net of existing fund balances.
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Maximum Justified Fee Schedule
Improve-Parks - Water
General Fire Land Park System State Recycled Recycled Government Police Protection Acquisition Improve- Land Us Facilities Facilities Facilities • Supply �Re (per Square Foot)
Single Family $ 1.29 2.96 1.37 $ 6.95 3.00 0.59 0.65 $ 3.13 $ 2.92 $ 5.81 $ 3.36 $ 32.03 Multifamily 1.89 4.33 2.00 10.17 4.39 1.01 0.76 3.72 3.47 6.90 4.30 42.94 Mobile Home 1.34 3.07 1.41 7.20 3.11 0.69 0.35 1.67 1.56 3.10 3.74 27.24 Residential (Calculated for the Average Sized Dwelling Unit) Single Family $ 3,356 $ 7,690 $ 3,547 $ 18,066 $ 7,794 $ 1,524 $ 1,677 $8,142 $ 7,585 $ 15,100 $ 8,727 $ 83,208 Multifamily 2,079 4,762 2,196 11,189 4,827 1,113 838 4,095 3,815 7,595 4,735 47,245 Mobile Home 1,927 41416 2,036 10,373 41475 990 503 2,409 21244 41468 5,385 39,227 Nonresidential (Per 1,000 square feet, hotel room or RV Park Space) Retail/Service $ 1,423 $ 6,942 $ 7,373 NA NA $ 777 $ 989 $4,817 $ 4,488 $ 8,935 $ 11,660 $ 47,404 Office 2,188 10,674 11,337 NA NA 777 989 4,817 4,488 8,935 14,694 58,899 Light Industrial 778 3,798 4,034 NA NA 777 989 4,817 4,488 8,935 6,958 35,574 Self Storage 778 3,798 4,034 NA NA 777 989 4,817 4,488 8,935 1,605 30,221 Self Storage (Indoor 778 3,798 4,034 NA NA NA NA NA NA NA 11605 10,215 Water Use)
Hotel/Motel 872 4,256 4,521 NA 3,269 777 1,039 5,010 4,668 9,292 5,231 38,935 RV Park Space 872 41256 4,521 NA 3,269 396 822 3,998 3,725 7,416 5,385 34,660 F 1
Fee Comparison : Single Family Unit, 2,500 square feet
CURRENT DRAFT
CategoryPismo Pismo Arroyo Grover Robles Robles Luis Obispo Luis Obispo • • • Beach Morro • •
Development Impact Fees $ - $ - $ - $ - $ - $ 15,700 $ - $ - $ - $ - Administrative Facilities/General Gov't 3,426 3,225 - 1,036 3,225 4,675 4,194 4,194 - - Fire Facilities 3,688 3,425 600 954 750 1,700 1,448 1,448 865 865 Libraries - - - 532 - - 1,353 1,353 - - Parks 15,908 17,375 8,075 6,435 8,857 4,875 4,101 4,101 8,981 10,289 Police Facilities 21430 71400 425 574 3,375 1,550 106 106 1,016 1,016 Park Improvements/Recreation
Facilities 9,555 7,500 425 1,084 2,275 - - - - - Storm Drain - - 97 777 - 200 - - - - Transportation/Traffic 8,115 8,400 3,425 5,597 - 7,525 3,655 12,543 11,997 36,665 Recycled Water 13,581 21,825 - - - - - - - - Wastewater/Sewer 4,603 1,475 1,837 - 2,796 10,653 13,515 13,515 16,344 16,344 Water 12,696 9,450 6,469 - 4,575 10,613 31,840 31,840 17,598 17,598 Total - per Prototype $ 74,002 $ 80,075 $ 21,353 $ 16,989 $ 25,853 $ 57,491 $ 60,212 $ 69,100 $ 56,802 $ 82,778 1 Water fee includes water facilities and state water supply fees. Recycled water fee includes water and wastewater components. z Paso Robles Transportation Fee varies by project location. 3 San Luis Obispo Transportation Fee varies by project location. 14 Fee Comparison : 1 Multifamily Unit, 1 , 100 Square Feet CURRENT DRAFT of of
Pismo Pismo Arroyo Grover Paso Robles Paso Robles Luis Obispo Luis Obispo Fee Category Beach' Beach' Grande Atascadero Beach Morro Bay (LoW)2 (High)2 (LoW)3 (High)3 Development Impact Fees $ - $ - $ - $ - $ - $ 11,077 $ - $ - $ - $ - Administrative
Facilities/General Gov't 2,413 2,079 - 1,036 1,419 31388 4,194 4,194 - - Fire Facilities 2,595 2,200 264 760 330 1,265 1,448 11448 623 623 Libraries - - - 418 - - 1,353 1,353 - - Parks 11,194 11,187 3,553 5,059 3,897 3,575 4,101 4,101 - - Police Facilities 1,709 4,763 187 334 1,485 1,122 125 125 731 731 Park
Improvements/Recreation
Facilities 6,723 4,829 187 852 1,001 - - - - - Storm Drain - - 36 499 - 99 - - - - Transportation/Traffic 4,981 4,730 1,507 5,597 - 5,159 2,519 8,644 9,321 28,986 Recycled Water 6,831 11,407 - - - - - - - - Wastewater/Sewer 3,361 1,111 1,525 - 3,062 10,653 13,515 13,515 13,152 13,152 Water 6,371 4,928 6,469 - 4,392 10,613 31,840 31,840 14,079 14,079 Total - per Prototype $ 46,178 $ 47,234 $ 13,728 $ 14,555 $ 15,586 $ 46,951 $ 59,095 $ 65,220 $ 37,907 $ 57,572 1 Water fee includes water facilities and state water supply fees. Recycled water fee includes water and wastewater components. z Paso Robles Transportation Fee varies by project location. 3 San Luis Obispo Transportation Fee varies by project location. 15 Fee Comparison : Commercial/ Retail - 10,000 Square Feet
CURRENT DRAFT
CategoryPismo Pismo Arroyo Grover Paso Robles Paso Robles Luis Obispo Luis Obispo Fee • • • Beach Morro • • Development Impact Fees $ - $ - $ - $ - $ - $ 63,700 $ - $ - $ - $ - Administrative Facilities/General Gov't 17,060 14,230 - 800 6,200 4,100 15,200 15,200 - - Fire Facilities 40,840 73,730 2,050 7,850 1,430 3,700 5,300 5,300 3,100 3,100 Libraries - - - 2,620 - - - - - - Parks - - - 1,890 - 300 - - - - Police Facilities 12,070 69,420 1,470 5,230 6,530 900 1,600 1,600 3,600 3,600 Storm Drain - - 120 3,750 - 500 - - - - Transportation/Traffic 110,690 116,600 69,380 93,710 69,380 53,600 106,100 146,200 159,400 475,000 Recycled Water 80,360 134,230 - - - - - - - - Wastewater/Sewer 23,480 7,770 2,570 - 14,220 10,653 13,515 13,515 27,785 27,785 Water 75,030 58,060 6,469 - 18,300 10,613 31,840 31,840 30,091 30,091 Total - per Prototype $ 359,530 $ 474,040 $ 82,059 $ 115,850 $ 116,060 $ 148,066 $ 173,555 $ 213,655 $ 223,976 $ 539,576 1 Water fee includes water facilities and state water supply fees. Recycled water fee includes water and wastewater components. z Paso Robles Transportation Fee varies by project location. 3 San Luis Obispo Transportation Fee varies by project location. 16 Policy Options
■ Implement less than maximum justified fee amounts ■ Phase in fee increases over time
■ Exempt or reduce fees for certain land uses, such as affordable housing
Next Steps
■ Community Meeting to present proposed fees on February 4 ■ City Council to hold public hearing to consider fee adoption on February 18 ■ If Resolution approved, effective date of fees is April 19, 2025 F18
Questions
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