City of Pismo Beach
Development Impact Fee Nexus Study Update
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Timeline
■ February 3, 2025 Special Council Meeting Study Session :
■ Willdan and City staff presented the Study, including its methodology and the proposed maximum justified DIF schedule, for the Council's consideration . ■ After reviewing the information, the Council provided direction on modifying the proposed fees and requested that staff return with a revised fee schedule. ■ February 4, 2025 Community Workshop
■ February 18, 2025 Public Hearing
■ Effective Date of New Rates.
■ The earliest date that the fees may be effective is April 19, 2025, which is 60 days after the resolution is adopted .
■ Staff recommends moving the effective date to July 1, 2025 to be in line with other fee changes in the City (typically July 1st and January 1st)
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
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
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
Proposed Fee Schedule - Council Direction from Study Session Improve-Parks Water
General Fire Land Park System State Recycled Recycled Government Police Protection Acquisition Improve- Land Use Facilities Facilities Facilities • Supply Residential (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 41762 21196 111189 4,827 11113 838 4,095 3,815 7,595 41735 471245 Mobile Home 1,927 4,416 2,036 10,373 4,475 990 503 2,409 2,244 4,468 5,385 39,227 Nonresidential (Per 1,000 square feet, hotel room or RV Park Space) Retail/Service 1,067 5,207 5,530 583 742 3,613 3,366 6,701 8,745 35,553 Office 1,641 8,006 8,503 583 742 3,613 3,366 6,701 11,021 44,174 Light Industrial 584 2,849 3,026 583 742 3,613 3,366 6,701 5,219 26,681 Self Storage 584 2,849 3,026 583 742 3,613 3,366 6,701 1,204 22,666 Self Storage (Indoor
water use only)'
584 2,849 3,026 11204 7,661
Hotel/Motel 654 3,192 3,391 2,452 583 779 3,758 3,501 6,969 3,923 29,201 RV Park Space 654 3,192 3,391 2,452 297 617 2,999 2,794 5,562 4,039 25,995
Recycled Water Alternative Fee Schedule - Council Direction from Study Session Proposed
(Water) (Wastewater)
Water Meter Size Development Development Tota I Impact Fee per Impact Fee Recycled Water Recycled Water -
Meter Size Meter Size •
•
1" Meter $ 5,689 $ 11,325 $ 17,014 1 %" Meter 11,378 22,650 34,028
2" Meter 18,204 36,240 54,444
3" Meter 54,612 108,720 163,332
4" Meter 95,571 190,260 285,831
6" Meter 209,346 416,760 626,106
8" Meter 364,080 724,800 1,088,880
10" Meter 568,875 11132,500 11701,375
12" Meter 750,915 1,494,900 2,245,815
Recommendation
■ Conduct a Public Hearing to receive input from the public on the proposed development impact fees
■ Adopt a Resolution adopting the City of Pismo Beach Development Impact Fee Update Study; making certain findings; and approving new Development Impact Fees for the City of Pismo Beach, effective on July 1, 2025
Questions
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