CITY OF PLACENTIA
DEVELOPMENT IMPACT FEE NEXUS STUDY
APRIL 2023
FINAL REPORT
PREPARED FOR:
CITY COUNCIL
CITY OF PLACENTIA
PREPARED BY:
SC[iConsultingGroup
4745 MANGELS BOULEVARD
FAIRFIELD, CALIFORNIA 94534
PHONE 707.430.4300
www.sci-cg.com
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CITY OF PLACENTIA
CITY COUNCIL
Mayor Ward L. Smith, District 5
Mayor Pro Tem Jeremy B. Yamaguchi, District 3
Councilmember Rhonda Shader, District 1
Councilmember Kevin Kirwin, District 2
Councilmember Chad P. Wanke, District 4
CITY ADMINISTRATOR
Damien Arrula
DEPUTY CITY ADMINISTRATOR
Luis Estevez
DIRECTOR OF DEVELOPMENT SERVICES
Joseph Lambert
FINANCE DIRECTOR
Jennifer Lampman
POLICE CHIEF
Brad Butts
FIRE CHIEF
Jason Dobine
CITY OF PLACENTIA
DEVELOPMENT IMPACT FEE NEXUS STUDY, 2023 SC ICansultingGraup
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ACKNOWLEDGMENTS
This Development Impact Fees Nexus Study was prepared by SCI Consulting Group ("SCI") under an agreement with the City of Placentia ("City"). The work was accomplished under the general direction of Joe Lambert, Director of Development Services.
We want to acknowledge the special efforts made by the following individuals and organizations to this project:
Luis Estevez, City of Placentia
Jennifer Lampman, City of Placentia
Brad Butts, City of Placentia
Jason Dobine, City of Placentia
Sylvia Minjares, City of Placentia
Crystal Adams, City of Placentia
Dudek
Deborah Diep, CSU Fullerton Center for Demographic Research County of Orange Auditor's Office
County of Orange Assessor's Office
CITY OF PLACENTIA
DEVELOPMENT IMPACT FEE NEXUS STUDY, 2023 ConsultingGroup
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TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
FIRE IMPACT FEE 5
FIRE FACILITIES DEMAND FACTOR 6
EXISTING FIRE FACILITIES DEMAND EDUs 8
EXISTING FIRE PROTECTION FACILITIES 8
EXISTING FIRE FACILITIES STANDARD 9
FIRE IMPACT FEE DETERMINATION 10
FIRE IMPACT FEE NEXUS FINDINGS 11
POLICE IMPACT FEE 13
POLICE FACILITIES DEMAND FACTOR 14
EXISTING POLICE FACILITIES DEMAND EDUs 15
EXISTING POLICE FACILITIES 16
EXISTING POLICE FACILITIES STANDARD 17
POLICE IMPACT FEE DETERMINATION 17
POLICE IMPACT FEE NEXUS FINDINGS 19
ANIMAL SHELTER IMPACT FEE 21
ANIMAL SHELTER FACILITIES DEMAND FACTOR 21
EXISTING ANIMAL SHELTER FACILITY DEMAND EDUs 22
EXISTING ANIMAL SHELTER FACILITY COSTS 23
ANIMAL SHELTER FACILITIES STANDARD 23
ANIMAL SHELTER IMPACT FEE DETERMINATION 24
ANIMAL SHELTER IMPACT FEE NEXUS FINDINGS 24
PROJECTED DEVELOPMENT IMPACT FEE REVENUE 26
TOD SEWER IMPACT FEE 28
AVERAGE DAILY SEWER FLOW (GPD) 28
TOD SEWER IMPACT FEE DETERMINATION 30
TOD SEWER IMPACT FEE NEXUS FINDINGS 30
COMPARISON OF CURRENT AND MAXIMUM DEVELOPMENT IMPACT FEES 32 FEE PROGRAM ADOPTION REQUIREMENTS 33
FEE PROGRAM ADMINISTRATION REQUIREMENTS 34
ACCOUNTING REQUIREMENTS 34
REPORTING REQUIREMENTS 34
TRANSPARENCY REQUIREMENTS 35
CITY OF PLACENTIA
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ANNUAL INFLATIONARY ADJUSTMENT 36
FEE EXEMPTIONS 36
FEE CREDITS 36
NEXUS STUDY UPDATES 36
APPENDICES 38
APPENDIX A- RESIDENT EQUIVALENT DEMAND FACTOR 39
APPENDIX B - EXISTING FACILITIES, VEHICLES, AND EQUIPMENT 40
1. PAGE V
LIST OF FIGURES
FIGURE 1 - SUMMARY OF MAXIMUM PUBLIC SAFETY IMPACT FEES 3 FIGURE 2 — MAXIMUM TOD SEWER IMPACT FEE 4
FIGURE 3 — FIRE FACILITIES EDU DEMAND FACTOR 7
FIGURE 4 — EXISTING FIRE DEMAND EDUs 8
FIGURE 5 — REPLACEMENT VALUE OF EXISTING FIRE SYSTEM 9
FIGURE 6 — EXISTING FACILITIES STANDARD 9
FIGURE 7 — MAXIMUM FIRE IMPACT FEE 10
FIGURE 8 — POLICE FACILITIES EDU DEMAND FACTOR 15
FIGURE 9 — POLICE FACILITY DEMAND EDUs 16
FIGURE 10 - REPLACEMENT COST OF EXISTING POLICE FACILITIES 16 FIGURE 11 - EXISTING POLICE FACILITIES STANDARD 17
FIGURE 12 — MAXIMUM POLICE IMPACT FEE 18
FIGURE 13 — EDU DEMAND FACTOR 21
FIGURE 14 -ANIMAL SHELTER FACILITY DEMAND EDUs 22
FIGURE 15 — EXISTING ANIMAL SHELTER FACILITY COSTS 23
FIGURE 16 —ANIMAL SHELTER FACILITIES STANDARD 23
FIGURE 17 — MAXIMUM ANIMAL SHELTER IMPACT FEE 24
FIGURE 18 — PROJECTED DEVELOPMENT IMPACT FEE REVENUE 26 FIGURE 19 — TOD SEWER IMPROVEMENTS 28
FIGURE 20 — AVERAGE DAILY SEWER FLOW (GPD) AT BUILDOUT 29 FIGURE 21 — TOD SEWER IMPROVEMENTS PER GPD 29
FIGURE 22 — TOD SEWER IMPACT FEE 30
FIGURE 23 — COMPARISON OF CURRENT AND MAXIMUM PUBLIC SAFETY IMPACT FEES 32 FIGURE 24 — COMPARISON OF CURRENT AND MAXIMUM TOD SEWER IMPACT FEES 32 FIGURE 25 — RESIDENT EQUIVALENT DEMAND FACTOR 39
FIGURE 26 — EXISTING FIRE FACILITIES 40
FIGURE 27 — EXISTING FIRE APPARATUS, VEHICLES, AND EQUIPMENT 40 FIGURE 28 — EXISTING POLICE FACILITIES, PATROL VEHICLES, AND EQUIPMENT 41
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CITY OF PLACENTIA
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EXECUTIVE SUMMARY
The City of Placentia ("City") is located in northern Orange County and is bounded by the cities of Brea, Fullerton, Yorba Linda, and Anaheim. Incorporated in 1926, the City has grown to a current population of nearly 52,000. The Southern California Association of Governments ("SCAG") estimates that the City will grow to a population of 58,800 by 2040.
As new development occurs within the City, new or expanded capital facilities will be required to meet the demands of future development. Capital facilities will be partially funded through the City's impact fee programs.
This Development Impact Fee Nexus Study ("Nexus Study") was prepared pursuant to the "Mitigation Fee Act," as found in Government Code § 66000 et seq. The purpose of this Nexus Study is to establish the legal and policy basis for replacing the City's public safety impact fee with three new and separate impact fees — a fire impact fee, a police impact fee, and an animal control services fee. Additionally, the Nexus Study updates the City's Transit Oriented Development ("TOD") Sewer Fee. Each development impact fee addressed by this Nexus Study is determined separately.
In order to impose such fees, this Nexus Study demonstrates a reasonable relationship between new development, the amount of the fee, and the capital improvements funded by the fee. More specifically, this Nexus Study will present findings to meet the procedural requirements of the Mitigation Fee Act ("Act"), also known as AB 1600, which are as follows:
1. Identify the purpose of the fee. If the use is funding public facilities, the facilities must be identified. Identifying the public facilities may be a broad class of projects1 or made by reference to a capital improvement plan, made in applicable general or specific plan requirements, or made in other public documents2.
2. Identify the use to which the fee is to be put.
3. Determine how there is a reasonable relationship between the fee's use and the type of development project on which the fee is imposed ("benefit relationship").
4. Determine how there is a reasonable relationship between the need for the facilities and the type of development project on which the fee is imposed ("impact or need relationship").
1 According to Government Code § 66000(b) and validated by Homebuilders Association of Tulare/Kings Counties, Inc. v. City of Lemoore in 2010.
2 According to Gov't Code Section 66001(a)(2).
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5. Determine how there is a reasonable relationship between the amount of the fee and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed ("rough proportional relationship").
Additionally, the Act specifies that the fee shall not include costs attributable to existing deficiencies in public facilities but may include the costs attributable to the increased demand for public facilities reasonably related to the development project in order to refurbish existing facilities to maintain the existing level of service or achieve an adopted level of service that is consistent with the general plan.
The Nexus Study also outlines the procedural requirements for approval of the Nexus Study and proposed development impact fee programs ("fee programs") by the City Council. Also, the Act contains specific requirements for the annual administration of the fee programs. The last section of the Nexus Study provides these statutory requirements and other important information regarding the imposition and collection of the fees.
The figure below summarizes the maximum development impact fees determined by this Nexus Study. The land use categories are defined below. ■ "Single-family detached housing" means detached one -family dwelling units. ■ "Single-family attached housing" means attached one -family unit buildings with an assessor's parcel number for each dwelling unit.
■ "Multifamily housing" means buildings or structures designed for two or more families for living or sleeping purposes and having kitchen and bath facilities for each family.
■ "Mobile home" means a development area for residential occupancy in vehicles that require a permit to be moved on a highway, other than a motor vehicle designed or used for human habitation and for being drawn by another vehicle. ■ "Accessory dwelling unit" means a dwelling unit, or "granny flat," either a detached or attached dwelling unit, which provides complete, independent living facilities for one or more persons with provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the primary residence. ■ "Retail / Commercial" means buildings to be used for retail, general commercial, hotel/motel, private school, and similar nonresidential occupancy. ■ "Office" means a building to be used for general business services, professional office, medical office, and similar nonresidential occupancy.
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■ "Industrial" means a building to be used for manufacturing, fabrication, assembly, storage, distribution, and similar nonresidential purposes.
FIGURE 1 — SUMMARY OF MAXIMUM PUBLIC SAFETY IMPACT FEES Maximum Maximum Maximum
Fire Impact Police Impact Animal Care
Land Use Categories Unit Fee 1 Fee 2 Impact Fee 3 Total Calc a b c d=a+b+c
Residential
Single -Family Detached BSQFT $0.37 $0.43 $0.01 $0.81
Single -Family Attached BSQFT $0.49 $0.57 $0.02 $1.08
Multi -Family BSQFT $0.85 $0.98 $0.03 $1.86
Mobile Home BSQFT $0.66 $0.77 $0.02 $1.45
ADU > 750 sq. ft. BSQFT $0.37 $0.43 $0.01 $0.81
Nonresidential
Retail / Commercial BSQFT $0.52 $0.60 $1.120
Office BSQFT $0.74 $0.86 $1.600
Industrial BSQFT $0.37 $0.43 $0.800
Notes:
See Figure 7.
2 See Figure 12.
3 See Figure 17.
Public safety impact fees for residential land uses shall be charged on the square footage within the perimeter of a residential structure. Garages, carports, walkways, overhangs, patios, enclosed patios, detached storage structures, or similar areas are excluded.
The nonresidential land uses shall be charged for "covered and enclosed space" within the perimeter of a nonresidential structure. Any storage areas incidental to the principal use of the development, garages, parking structures, unenclosed walkways, or utility or disposal areas shall not be subject to the fee.
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DEVELOPMENT IMPACT FEE NEXUS STUDY, 2023 SC!Co nsultingGroup
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FIGURE 2 — MAXIMUM TOD SEWER IMPACT FEE
Maximum
TOD Sewer
Land Use Category Unit Fee 1
Single -Family Detached DU $9,474
Single -Family Attached DU $6,842
Multi -Family DU $5,789
Mobile Homes DU $5,789
Retail / Commercial BSQFT $5.26
Office BSQFT $7.89
Industrial BSQFT $3.15
Notes:
1 See Figure 22.
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DEVELOPMENT IMPACT FEE NEXUS STUDY, 2023 SC IConsultingGroup
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FIRE IMPACT FEE
Prior to 2020, the Orange City Fire Authority ("Fire Authority") provided first -responder fire protection services to the City of Placentia along with the Cities of Buena Park, Cypress, La Palma, and the unincorporated Orange County under a joint powers agreement. In 2020, the City established its own fire department providing first -responder fire protection services, including fire prevention and suppression, emergency medical response, transport and rescue, and hazardous materials response. The City collects a public safety fee which funds new or expanded facilities for police, fire, and animal control services.
For purposes of the fire impact fee, the term "facilities" or "fire system facilities" will refer to facilities (land, stations, and other buildings), apparatus (engines, ambulances, and other vehicles), and equipment. The term "new development" will generally refer to the persons (residents and employees working in the City) and the structural area (residential area and nonresidential building area) in which the persons live or work.
The fee's purpose is to fund the one-time cost of expanding the City's facilities, apparatus, and equipment needed to maintain its existing level of service. No capacity exists to serve new development. If the City's fire system capacity is not increased to satisfy the additional demand, the quality and responsiveness of the City's fire protection and emergency response services will deteriorate.
To determine the City's fire impact fee consistent with these substantive requirements, this Nexus Study utilizes a systemwide existing facility standard methodology. The facility standard methodology is commonly used for determining fire impact fees. It was validated by the Homebuilders Association of Tulare/Kings Counties, Inc. v. City of Lemoore in 2010.
Under this method, identification and use of an existing facility standard and the restricted uses of fee revenue ensure that new development will not fund any existing deficiencies as prohibited by the Act. Instead, only capital improvements and apparatus, vehicle, and equipment purchases that expand the City's fire system are allowable uses of fee revenue.
Likewise, the fee program will generate only enough revenue to proportionally expand the fire system to maintain the existing level of service.
The existing facility standard is based on the City's ratio of existing fire protection and emergency response facilities, apparatus, and equipment to the existing service population. Existing development refers to the persons residents and employees working in the City. The City's existing fire system's value is determined using the replacement value of the City's existing inventory of fire protection facilities, apparatus, and equipment.
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These costs are then applied to seven land use categories in proportion to the need they create for fire protection and emergency response services.
The Act requires that in establishing a development impact fee program, the facilities funded by the fee must be identified. However, the Act provides flexibility regarding how that identification may be made. The fee program may identify a broad class of projects3 or made by reference to a capital improvement plan, made in applicable general or specific plan requirements, or made in other public documents4.
The capital improvements within the City and apparatus and equipment purchases will benefit the City's entire fire system. The City's fire protection and emergency response resources are organized as an integrated fire system. The resources of a one fire station do not serve a particular area in isolation from the City's other fire stations and resources.
When the City has a service call, whether, for a fire or other emergency, the City's response often involves resources from multiple fire stations. Likewise, new development in area of the City is served by all the City fine facilities, apparatus, and equipment, not just by the nearest fire station.
FIRE FACILITIES DEMAND FACTOR
To determine the relative demand for fire facilities for various land uses, this Nexus Study relies on equivalent dwelling unit ("EDU") factors to compare fire facilities demand across four residential and three nonresidential land uses. This common approach allows for the cost of fire protection facilities, apparatus, and equipment to be equitably apportioned among residential and nonresidential land uses. The equivalent dwelling unit ("EDU") is also used to convert the nonresidential building area to a residential dwelling unit value.
This approach allows the cost of facilities, apparatus, vehicles, and equipment to be equitably apportioned among residential and nonresidential land uses.
Figure 3 on the following page shows the calculation of the facilities EDU demand factor for seven land use categories. The residential land use categories are expressed per dwelling unit, and the nonresidential land use categories are expressed per 1,000 square feet of building area. Each land use category's occupancy density is multiplied by their respective resident equivalent demand factor, then converted to single-family home value.
By this measure, for example, one single-family home creates the demand for fire facilities equal to 520 square feet of retail/commercial building area. 3 According to Government Code § 66000(b) and validated by Homebuilders Association of Tulare/Kings Counties, Inc. v. City of Lemoore in 2010.
4 According to Gov't Code Section 66001(a)(2).
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Residential occupancy density is based on census data from the U.S. Census Bureau's 2021 American Community Survey 5 -Year Estimates for the City of Placentia.
Nonresidential occupancy density figures are from the 2001 "Employment Density Study" prepared by The Natelson Company, Inc. for the Southern California Association of Governments and expressed in terms of the number of employees per 1,000 square feet of building area. The density figure for "nonresidential" is weighted, assuming a land use mix of 25.0% retail/commercial, 10.0% office, and 65.0% industrial. For the purpose of this Nexus Study, these figures are considered to be representative of the employment density of future nonresidential development.
FIGURE 3 - FIRE FACILITIES EDU DEMAND FACTOR
Land Use Category
Calc
Resident
Equivalent Facility EDU
Unit Demand Demand Demand
Unit Density Factor 1 per Unit Factor
a b c=a*b b=a/3.41
Single -Family Detached Housing DU 3.41 1.000 3.41 1.00 Single -Family Attached Housing DU 2.76 1.000 2.76 0.81 Multi -Family Housing DU 2.87 1.000 2.87 0.84
Mobile Home DU 2.24 1.000 2.24 0.66
Residential DU 3.15 1.000 3.15 0.92
Retail / Commerical KBSF 2.33 0.436 1.02 0.30
Office KBSF 3.33 0.436 1.45 0.43
Industrial KBSF 1.67 0.436 0.73 0.21
Nonresidential KBSF 2.04 0.436 0.89 0.26
Notes:
See Appendix A.
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EXISTING FIRE FACILITIES DEMAND EDUs
Existing demand EDUs represent the level of existing development served by the City's existing fire system. Figure 4 below calculates the City's fire existing demand EDUs based on the total number of dwelling units and estimated nonresidential building area. As shown, the total existing demand EDUs for the City is 18,239.
Land Use
FIGURE 4 — EXISTING FIRE DEMAND EDUs
Calc
Total
Total Facilities Existing
Existing EDU Demand Demand
Unit 1 Units 2 Factor 3 EDUs
a b c = a " b
Single -Family Detached DU 9,816 1.00 9,816
Single -Family Attached DU 1,913 0.81 1,550
Multi -Family Housing DU 4,582 0.84 3,849
Mobile Home DU 573 0.66 378
Nonresidential KBSF 10,176 0.26 2,646
Total 27,060 18,239
Source: 2020 U.S. Census; City of Placentia; and SCI Consulting Group Notes:
1 DU = Dwelling Unit; KBSF = 1,000 Building Square Feet 2 From U.S. Census 2021 ACS 5 -Year Estimate for City of Placentia. 3 See Figure 3.
' Nonresidential units is determined by multiplying total housing units by an estimated jobs -to - housing ratio of 1.23 and 490 square feet per employees divided by 1,000.
EXISTING FIRE PROTECTION FACILITIES
The next step in determining the City's existing fire facilities standard is to calculate the replacement value of the City's fire protection facilities, apparatus, and equipment. Figure 5 below presents a summary of replacement costs (in 2023 dollars) for the City's existing fire facilities (land and fire stations), apparatus (engines and special vehicles), and equipment. Fire station replacement costs are based on $800.00 per square foot. The estimated replacement value of the City's apparatus, vehicles, and equipment inventory is based on unit cost assumptions provided by the City. (The detailed inventory and estimated replacement value for each are provided in Appendix B.) The estimated replacement value of the City's existing fire protection facilities, apparatus, and equipment is approximately $13.4 million.
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DEVELOPMENT IMPACT FEE NEXUS STUDY, 2023 SC IConsultingGroup
FIGURE 5 — REPLACEMENT VALUE OF EXISTING FIRE SYSTEM
Fee Components
Land
Stations / Other Buildings
Apparatus / Vehicles
Equipment
Total Fire System Facilities
Source: Placentia Fire Department;
Group
Total
Replacement
Value (2023 $s)
$2,025,000
$6,961,600
$3,955,000
$431,500
$13,373,100
SCI Consulting
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EXISTING FIRE FACILITIES STANDARD
The City's ratio of existing fire facilities, apparatus, and equipment to the City's service population establishes the standard for determining new development's fair share of the cost to expand the City's fire facilities as growth occurs. As shown in Figure 6 below, this standard is represented by the existing fire system facilities cost of $733.21 per demand EDU.
FIGURE 6 — EXISTING FACILITIES STANDARD
Existing Fire System Facilities 1
Existing Demand EDUs 2
Existing Facilities Standard
Notes:
1 See Figure 5.
2 See Figure 4.
CITY OF PLACENTIA
DEVELOPMENT IMPACT FEE NEXUS STUDY, 2023 SCIConsultingGroup $13,373,100
18,239
$733.21
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FIRE IMPACT FEE DETERMINATION
Figure 7 below presents the calculation of the maximum fire impact fee. As shown, the fee is determined by multiplying the fire facility standard by their respective EDU demand factor plus an additional 4 percent for administering the fire impact fee program. The fee program administrative cost component is designed to offset the cost of collection, documentation, annual reporting requirements, five-year report requirements, periodic Nexus Study updates, and other costs reasonably related to compliance with the Act. The City may adopt fees lower than the maximum provided they are reduced by the same percentage for each land use category.
Land Use Categories
Calc
Residential
Single Family Detached
Single Family Attached
Multi -Family Housing
Mobile Home
ADU => 750 sq. ft. 5
Nonresidental
Retail / Commerical
Office
Industrial
FIGURE 7 - MAXIMUM FIRE IMPACT FEE
Existing EDU
Facilities Demand
Standard 1 Factor2
a b
$733.21 1.00
$733.21 0.81
$733.21 0.84
$733.21 0.66
$733.21
$733.21
$733.21
0.68 0.98
0.49 Cost per
Unit
c=a*b
per dwelling unit
$733.21
$593.45
$617.10
$481.64
per 1,000 sq. ft.
Fee
Program
Admin. 3
d=c*0.04
$29.33
$23.74
$24.68
$19.27
$500.99 $20.04
$716.01 $28.64
$359.08 $14.36
Average
Living 1 Maximum
Building Fire Impact
Sq. Ft. 4 Fee
e f=(c+d)/e
- per sq. ft. -
2,050 $0.37
1,250 $0.49
750 $0.85
750 $0.66
$0.37
- per sq. ft. -
1,000 $0.52
1,000 $0.74
1,000 $0.37
Notes:
1 See Figure 6.
2 See Figure 3.
3 Collection, documentation, annual reporting requirements, five-year report requirements, periodic Nexus Study updates and other costs reasonably related to compliance with the Act. 4 Average dwelling unit sizes are provided by the City Development Services Department. 5Accessory dwelling unit less than 750 square feet are exempt. Accessory dwelling unit of 750 square feet or more must be charged proportionately in relation to the square footage of the primary dwelling unit.
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FIRE IMPACT FEE NEXUS FINDINGS
PURPOSE OF FEE
The purpose of the fire impact fee is to fund the cost of fire protection and emergency response facilities, apparatus, and equipment attributable to new residential and nonresidential development in the City. The fire impact fee will ensure that new development will not burden existing development with the cost of expanded facilities, apparatus, and equipment required to accommodate growth as it occurs within the City.
USE OF FIRE IMPACT FEE REVENUE
Fee revenue will be used to fund the cost of expanded fire facilities, apparatus, vehicles, and equipment to serve new development. Below is a summary of the allowable and prohibited uses of fee revenue.
FIGURE 11 - SUMMARY OF ALLOWABLE AND PROHIBITED USES OF FIRE IMPACT FEE REVENUE Allowable Uses
• New (added) or expanded land and
facilities costs (100%)
• Apparatus, vehicles, and equipment
purchases that expand the system
inventory (100%)
• Facility costs already incurred to
provide growth -related capacity
(100%)
• Cost of an apparatus and vehicle
replacement attributable to new
development (11.0%)
• Portion of a renovation project that
expands service capacity
Prohibited Uses
• Existing deficiencies, such as
improvements to existing facilities that
do not expand service capacity
• Cost of an apparatus and vehicle
replacement attributable to existing
development (89.0%)
• Operational, maintenance, or repair
costs
BENEFIT RELATIONSHIP
The fee will be collected as development occurs. To maintain its existing level of fire protection and emergency response services, fee revenue will be used to replace and expand the City's facilities, apparatus, and equipment to meet the additional demand generated by the new residents and employees and the new structural area created by new development projects.
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Fee revenue will be deposited into a separate fire impact fee account or fund in a manner to avoid any commingling of the fees with other revenues and funds. The fee revenue will be restricted to the uses described in the "Use of Fee Revenue" finding. These actions ensure that a development project paying the fire impact fee will benefit from its use.
IMPACT RELATIONSHIP
New residential and nonresidential development projects in the City will grow the persons (residents and employees) and the structural area (residential area and nonresidential building area) in which persons live or work. The growth in persons and structural area will create an additional need for the City's fire protection and prevention, emergency response service, and a corresponding need for new or expanded facilities and replacement of apparatus, vehicles, and equipment. The fee will be imposed on different types of development projects for the additional service population generated and structural area created by new development projects.
ROUGH PROPORTIONALITY
The cost of fire protection facilities, apparatus, and equipment attributable to a development project is based upon the level of existing development served by the City's existing fire protection facilities. The use of an existing facility standard methodology to determine the fire impact fee achieves proportionality between existing development and new development. Moreover, these equivalent costs are applied to seven land use categories in proportion to the need they create for expanded facilities.
The use of a fire facilities demand factor to determine the fire impact fee schedule achieves proportionality across the types of development on which the fee is imposed.
Larger development projects will generate a higher number of residents and structural area to protect and, as a result, will pay a higher fee than smaller development projects. Thus, the application fire impact fee schedule to a specific project ensures a reasonable relationship between the fee and the cost of the facilities, equipment, and apparatus attributable to that project.
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POLICE IMPACT FEE
The Placentia Police Department ("Department") protects and serves the City through crime prevention, investigation, and other police services. The Department headquarters are located within the Placentia Civic Center at 401 East Chapman Avenue. This section determines the City's police impact fee.
For purposes of the police impact fee, the term "facilities" will refer to facilities (land, stations, and other buildings), vehicles (patrol and other vehicles), and equipment. The term "new development" will generally refer to City residents and employees working in the City.
The fee's purpose is to fund the one-time cost of expanding the City's police facilities, patrol vehciles, and equipment needed to maintain its existing level of service. No capacity exists to serve new development. If the City's police system capacity is not increased to satisfy the additional demand, the quality and responsiveness of the City's police services will deteriorate.
To determine the City's police impact fee consistent with the substantive requirements of the Act, the Nexus Study utilizes a citywide existing facility standard methodology. The facility standard methodology is commonly used for calculating police impact fees. It was validated by the Homebuilders Association of Tulare/Kings Counties, Inc. v. City of Lemoore in 2010. Under this method, identification and use of an existing facility standard and the restricted uses of fee revenue ensure that new development will not fund any existing deficiencies as prohibited by the Act. Instead, only capital improvements and vehicle and equipment purchases that expand the City's police system are allowable uses of fee revenue. Likewise, the fee program will generate only enough revenue to proportionally expand the police system to maintain the existing level of service.
The existing facility standard is based on the City's ratio of existing police facilities, vehicles, and equipment to the existing service population. Existing service population refers to City residents and employees working in the City. The City's existing police system's value is determined using the replacement value of the City's existing inventory of police facilities, patrol vehicles, and equipment. These costs are then applied to seven land use categories in proportion to the need they create for police service.
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The Act requires that the facilities funded by the fee must be identified in establishing a development impact fee program. However, the Act provides flexibility regarding how that identification may be made. The fee program may identify a broad class of projects5 or made by reference to a capital improvement plan, made in applicable general or specific plan requirements, or made in other public documents6. This fee program identifies facilities (land, stations, and other buildings), vehicles (patrol and support), and equipment as the broad classes that will be funded with the fee.
POLICE FACILITIES DEMAND FACTOR
To determine the relative demand for fire facilities for various land uses, this Nexus Study relies on equivalent dwelling unit ("EDU") factors to compare fire facilities demand across four residential and three nonresidential land uses. This common approach allows for the cost of fire protection facilities, apparatus, and equipment to be equitably apportioned among residential and nonresidential land uses. The equivalent dwelling unit ("EDU") is also used to convert the nonresidential building area to a residential dwelling unit value.
This approach allows the cost of facilities, apparatus, vehicles, and equipment to be equitably apportioned among residential and nonresidential land uses.
Figure 3 below shows the facilities EDU demand factor calculation for seven land use categories. The residential land use categories are expressed per dwelling unit, and the nonresidential land use categories are expressed per 1,000 square feet of building area.
Each land use category's occupancy density is multiplied by their respective resident equivalent demand factor, then converted to single-family home value. By this measure, for example, one single-family home creates the demand for fire facilities equal to 300 square feet of retail/commercial building area.
5 According to Government Code § 66000(b) and validated by Homebuilders Association of Tulare/Kings Counties, Inc. v. City of Lemoore in 2010.
6 According to Gov't Code Section 66001(a)(2).
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FIGURE 8 - POLICE FACILITIES EDU DEMAND FACTOR
Land Use Category
Resident
Equivalent Facility EDU
Unit Demand Demand Demand
Unit Density Factor 1 per Unit Factor
Calc a b c=a*b b=a/3.41
Single -Family Detached Housing DU 3.41 1.000 3.41 1.00 Single -Family Attached Housing DU 2.76 1.000 2.76 0.81 Multi -Family Housing DU 2.87 1.000 2.87 0.84
Mobile Home DU 2.24 1.000 2.24 0.66
Residential DU 3.15 1.000 3.15 0.92
Retail / Commerical KBSF 2.33 0.436 1.02 0.30
Office KBSF 3.33 0.436 1.45 0.43
Industrial KBSF 1.67 0.436 0.73 0.21
Nonresidential KBSF 2.04 0.436 0.89 0.26
Notes:
1 See Appendix A.
Residential occupancy density is based on census data from the U.S. Census Bureau's 2021 American Community Survey 5 -Year Estimates for the City of Placentia.
Nonresidential occupancy density figures are from the 2001 "Employment Density Study" prepared by The Natelson Company, Inc. for the Southern California Association of Governments and expressed in terms of the number of employees per 1,000 square feet of building area. The density figure for "nonresidential" is weighted, assuming a land use mix of 25.0% retail/commercial, 10.0% office, and 65.0% industrial. For the purpose of this Nexus Study, these figures are considered to be representative of the employment density of future nonresidential development.
EXISTING POLICE FACILITIES DEMAND EDUs
Existing demand EDUs represent the level of existing development served by the City's existing police system. Figure 9 on the following page calculates the City's police existing demand EDUs based on the total number of dwelling units and estimated nonresidential building area. As shown, the total existing demand EDUs for the City is 18,239.
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FIGURE 9 — POLICE FACILITY DEMAND EDUs
EDU Existing
Existing Demand Demand
Land Use Category Unit Units 1 Factor 2 EDUs
Calc a b c=a*b
Single -Family Detached Housing DU 9,816 1.00 9,816
Single -Family Attached Housing DU 1,913 0.81 1,550
Multi -Family Housing DU 4,582 0.84 3,849
Mobile Home DU 573 0.66 378
Nonresidential KBSF 10,176 0.26 2,646
Total 27,060 18,239
Source: 2020 U.S. Census; City of Placentia; and SCI Consulting Group Notes:
1 DU = Dwelling Unit; KBSF = 1,000 Building Square Feet 2 From U.S. Census 2021 ACS 5 -Year Estimate for City of Placentia. 3 See Figure 8.
4 Nonresidential units is determined by multiplying total housing units by an estimated jobs -to - housing ratio of 1.23 and 490 square feet per employees divided by 1,000.
EXISTING POLICE FACILITIES
The next step in determining the City's existing police facilities standard is to calculate the replacement cost of the City's police facilities, vehicles, and equipment. Figure 10 summarizes replacement cost (in 2023 dollars) for the City's existing police facilities (land and buildings), patrol vehicles, and equipment. As shown below, the estimated replacement cost of the City's existing police facilities, patrol vehicles, and equipment is approximately $15.4 million in 2023 dollars. See Appendix B for more detail.
FIGURE 10 — REPLACEMENT COST OF EXISTING POLICE FACILITIES Total
Replacement
Fee Components Value (2023 $s)
Land $4,140,000
Stations / Other Buildings $6,658,905
Vehicles $1,650,000
Equipment $2,930,365
Total Police Facilities $15,379,270
Source: Placentia Police Department; SCI Consulting Group
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EXISTING POLICE FACILITIES STANDARD
The City's ratio of existing police facilities, vehicles, and equipment to the existing service population establishes the standard for determining new development's fair share of the cost to expand the City's police facilities as growth occurs. As shown below, the standard is represented by the police facilities cost of $843.21 per EDU.
FIGURE 11 — EXISTING POLICE FACILITIES STANDARD
Existing Police Facilities 1 $15,379,270
Existing EDUs 2 18,239
Existing Police Facility Cost Per EDU $843.21
Notes:
1 See Figure 10.
2 See Figure 9.
POLICE IMPACT FEE DETERMINATION
Figure 12 on the following page presents the calculation of the maximum allowable police impact fee. As shown, the fee per unit of development for each land use category is determined by multiplying the police facility standard by their respective EDU demand factor plus an additional 4 percent for administration of the fee program. The fee program administrative cost component is designed to offset the cost of collection, documentation, annual reporting requirements, five-year report requirements, periodic Nexus Study updates, and other costs reasonably related to compliance with the Act.
The City may adopt fees lower than the maximum provided they are reduced by the same percentage for each land use category.
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FIGURE 12 - MAXIMUM POLICE IMPACT FEE
EDU Maximum
Facility Demand Cost per Fee Admin. Ave. Unit Police
Land Use Cateory Standard 1 Factor 2 Unit Cost 3 Sq. Ft. 4 Impact Fee Calc a b c=a*b d=c`0.04 e f=(c+d)/e
Residential per dwelling unit - per sq. ft. -
Single -Family Detached $843.21 1.00 $843.21 $33.73 2,050 $0.43 Single -Family Attached $843.21 0.81 $682.48 $27.30 1,250 $0.57 Multi -Family Housing $843.21 0.84 $709.68 $28.39 750 $0.98 Mobile Home $843.21 0.66 $553.90 $22.16 750 $0.77
ADU => 750 sq. ft. 5 $0.43
Nonresidential per 1,000 sq. ft. - per sq. ft. -
Retail / Commercial $843.21 0.68 $576.15 $23.05 1,000 $0.60 Office $843.21 0.98 $823.43 $32.94 1,000 $0.86
Industrial $843.21 0.49 $412.95 $16.52 1,000 $0.43
Notes:
1 See Figure 11
2 See Figure 8.
3 Collection, documentation, annual reporting requirements, five-year report requirements, periodic Nexus Study updates and other costs reasonably related to compliance with the Act. 4 Average dwelling unit sizes were provided by the City Development Services Department. 5Accessory dwelling unit less than 750 square feet are exempt. Accessory dwelling unit of 750 square feet or more must be charged proportionately in relation to the square footage of the primary dwelling unit.
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POLICE IMPACT FEE NEXUS FINDINGS
PURPOSE OF FEE
The purpose of the police impact fee is to fund the cost of police facilities, vehicles, and equipment attributable to new development in the City. The police impact fee will ensure that new development will not burden existing development with the cost of expanded facilities, vehicles, and equipment required to accommodate growth as it occurs.
USE OF POLICE IMPACT FEE REVENUE
Fee revenue will be used to fund the cost of expanded facilities, vehicles, and equipment to serve new development. Below is a summary of the allowable and prohibited uses of fee revenue.
FIGURE 11 - SUMMARY OF ALLOWABLE AND PROHIBITED USES OF POLICE IMPACT FEE REVENUE Allowable Uses
• New (added) or expanded land and
facilities costs (100%)
• Vehicles and equipment purchases
that expand the system inventory
(100%)
• Facility costs already incurred to
provide growth -related capacity
(100%)
• Cost of a vehicle replacement
attributable to new development
(11.0%)
• A portion of a renovation project that
expands service capacity
Prohibited Uses
• Existing deficiencies, such as
improvements to existing facilities that
do not expand service capacity
• Cost of vehicles replacement
attributable to existing development
(89.0%)
• Operational, maintenance, or repair
costs
BENEFIT RELATIONSHIP
The fee will be collected as development occurs. To maintain its existing level of police services, fee revenue will be used to replace and expand the City's facilities, vehicles, and equipment to meet the additional demand generated by the new residents and employees created by new development projects.
Fee revenue will be deposited into a separate police impact fee account or fund in a manner to avoid any commingling of the fees with other revenues and funds. The fee
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revenue will be restricted to the uses described in the "Use of Fee Revenue" finding.
These actions ensure that a development project paying the police impact fee will benefit from its use.
IMPACT RELATIONSHIP
New residential and nonresidential development projects in the City will grow the service population. Service population growth (new residents and employees) will create an additional need for the City's police service and a corresponding need for new or expanded facilities and replacement of vehicles and equipment. The fee will be imposed on different types of development projects for the additional service population generated by new development projects.
ROUGH PROPORTIONALITY
The cost of police facilities, vehicles, and equipment attributable to a development project is based upon the level of existing development served by the City's existing police facilities. Using an existing facilities standard methodology to determine the police impact fee achieves proportionality between existing development and new development.
Moreover, these equivalent costs are applied to seven land use categories in proportion to the need they create for expanded facilities.
The use of a police facility demand factor to determine the police impact fee schedule achieves proportionality across the types of development on which the fee is imposed.
Larger development projects will generate a higher service population and will pay a higher fee than smaller development projects. Thus, imposing the police impact fee schedule on a specific project ensures a reasonable relationship between the fee and the cost of the facilities, vehicles, and equipment attributable to that project.
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ANIMAL SHELTER IMPACT FEE
The County of Orange ("County") provides animal care services to the City, along with other cities in the County, under a services agreement. The services agreement specifies that the City shall also pay its fair share of the construction cost of its new facility and equipment costs. These costs are applied to seven land use categories in proportion to the need they create for animal shelter services to establish a cost/fee per unit of development.
ANIMAL SHELTER FACILITIES DEMAND FACTOR
Figure 13 determines an equivalent dwelling unit ("EDU") factor for each land use category. The EDU expresses the service population of each unit of a given land use in terms of a single-family attached dwelling unit. Residential density figures are based on census data from the 2020 U.S. Census and expressed in terms of the average occupancy per dwelling unit.
FIGURE 13— EDU DEMAND FACTOR
Dwelling Unit
Residential Land Use Occupancy EDU Demand
Category Unit 1 Factor 2 Factor
Calc a b=a/3.41
Single -Family Detached Housing DU 3.41 1.00
Single -Family Attached Housing DU 2.76 0.81
Multi -Family Housing DU 2.87 0.84
Mobile Home DU 2.24 0.66
Source: 2020 U.S. Census; City of Placentia; and SCI Consulting Group Notes:
1 DU = Dwelling Unit
2 From U.S. Census 2021 ACS 5 -Year Estimate for City of Placentia.
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EXISTING ANIMAL SHELTER FACILITY DEMAND EDUs
Existing demand EDUs represent the level of existing development served by the City's existing animal shelter system. Figure 9 on the following page calculates the City's animal shelter existing demand EDUs based on the total number of dwelling units and estimated nonresidential building area. As shown, the total existing demand EDUs for the City is 15,596.
FIGURE 14 — ANIMAL SHELTER FACILITY DEMAND EDUs
EDU Existing
Existing Demand Demand
Land Use Category Unit 1 Units 2 Factor 3 EDUs
Calc a b c=a`b
Single -Family Detached Housing DU 9,816 1.00 9,816
Single -Family Attached Housing DU 1,913 0.81 1,548
Multi -Family Housing DU 4,582 0.84 3,856
Mobile Home DU 573 0.66 376
Total Residential 16,884 15,596
Source: 2020 U.S. Census; City of Placentia; and SCI Consulting Group Notes:
1 DU = Dwelling Unit; KBSF = 1,000 Building Square Feet 2 From U.S. Census 2021 ACS 5 -Year Estimate for City of Placentia. 3 See Figure 13.
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EXISTING ANIMAL SHELTER FACILITY COSTS
Figure 15 summarizes replacement cost (in 2023 dollars) for the City's share of the Orange County Animal Care Shelter facilities and equipment costs. As shown below, the City's share is approximately $381,200 in 2023 dollars.
FIGURE 15 — EXISTING ANIMAL SHELTER FACILITY COSTS
OC Animal
Shelter Costs
Fee Components (2023 $s)
Buildings $317,200
Equipment $64,000
Total Animal Care Facilities $381,200
Source: City of Placentia; SCI Consulting Group
ANIMAL SHELTER FACILITIES STANDARD
The City's ratio of animal shelter facilities to existing EDUs establishes the standard for determining new development's fair share of the cost to expand the Orange County Animal Care Center facilities as growth occurs. The standard is represented by the animal shelter facility cost of $24.44 per capita.
FIGURE 16 — ANIMAL SHELTER FACILITIES STANDARD
Animal Shelter Facilities 1 $381,200
Existing EDUs 2 15,596
Existing Animal Shelter Facility Cost Per EDU $24.44
Notes:
See Figure 15.
2 See Figure 14.
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ANIMAL SHELTER IMPACT FEE DETERMINATION
Figure 17 presents the calculation of the maximum allowable animal shelter impact fee.
As shown, the fee for each residential land use category is determined by multiplying the animal shelter facility standard by their respective EDU demand factor plus an additional 4 percent for administration of the fee program. The fee program administrative cost component is designed to offset the cost of collection, documentation, annual reporting requirements, five-year report requirements, periodic Nexus Study updates, and other costs reasonably related to compliance with the Act.
Land Use Cateory
FIGURE 17 — MAXIMUM ANIMAL SHELTER IMPACT FEE
Maximum
Fee Animal
EDU Program Average Shelter
Facility Demand Cost per Admin. Unit Sq. Ft. Impact Fee Standard 1 Factor 2 Unit (4%) 3 4 5
Calc a b c=a"b d=c"0.04 e f=(c+d)/e
per dwelling unit - per sq. ft. -
Single -Family Detached $24.44 1.00 $24.44 $0.98 2,050 $0.01 Single -Family Attached $24.44 0.81 $19.78 $0.79 1,250 $0.02 Multi -Family $24.44 0.84 $20.57 $0.82 750 $0.03
Mobile Home $24.44 0.66 $16.06 $0.64 750 $0.02
ADU => 750 sq. ft. 6 $0.01
Notes:
See Figure 16.
2 See Figure 13.
3 Collection, documentation, annual reporting requirements, five-year report requirements, periodic Nexus Study updates and other costs reasonably related to compliance with the Act. 4 Average dwelling unit sizes provided by the City Development Services Department. 5 The maximum animal shelter impact fee is rounded down to the nearest cent. 6 Accessory dwelling unit less than 750 square feet are exempt. Accessory dwelling unit of 750 square feet or more must be charged proportionately in relation to the square footage of the primary dwelling unit.
ANIMAL SHELTER IMPACT FEE NEXUS FINDINGS
PURPOSE OF FEE
The purpose of the animal shelter impact fee is to fund the cost of animal shelter facilities for new residential development in the City. The animal shelter impact fee will ensure that new development will not burden existing development with the cost of expanded animal shelter facilities required to accommodate growth as it occurs within the City.
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USE OF FEE REVENUE
Fee revenue will be used to fund the cost of expanded animal shelter attributable to new residential development.
BENEFIT RELATIONSHIP
The fee will be collected as development occurs. To maintain its existing level of animal shelter services, fee revenue will be used to replace and expand the City's animal shelter to meet the additional demand generated by the new residents created by new development projects.
Fee revenue will be deposited into a separate animal shelter impact fee account or fund in a manner to avoid any commingling of the fees with other revenues and funds. The fee revenue will be restricted to the uses described in the "Use of Fee Revenue" finding.
These actions ensure that a development project paying the animal shelter impact fee will benefit from its use.
IMPACT OR NEED RELATIONSHIP
New residential projects in the City will generate new residents. The increase in population will create an additional need for the City's animal shelter facilities and a corresponding need for new or expanded animal shelter facilities and equipment. The fee will be imposed on different types of residential development projects for the additional service population generated created by new residential development projects.
ROUGH PROPORTIONALITY
The cost of animal shelter facilities and equipment attributable to a development project is based upon the level of existing development served by the City's existing animal shelter facilities. The use of an existing facilities standard methodology to determine the animal shelter impact fee achieves proportionality between existing development and new development. Moreover, these equivalent costs are applied to four residential land use categories in proportion to the need they create for expanded facilities.
The use of a fire facilities demand factor to determine the animal impact fee schedule achieves proportionality across the types of development on which the fee is imposed.
Larger development projects will generate a higher number of residents and, as a result, will pay a higher fee than smaller development projects. Thus, imposing the animal shelter impact fee schedule on a specific project ensures a reasonable relationship between the fee and the cost of the facilities and equipment attributable to that project.
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PROJECTED DEVELOPMENT IMPACT FEE REVENUE
Figure 18 projects development impact fee revenue through 2040. Total development impact fee revenue (in 2023 dollars) is then calculated by multiplying the fire facilities demand standard by demand EDU growth. Certainly, arguments can be made for higher or lower population growth.
FIGURE 18— PROJECTED DEVELOPMENT IMPACT FEE REVENUE
Existing
Demand EDUs Demand EDU Existing Facility Projected Fee
Development Impact Fee (2023) Growth (2040) Standard Revenue (2023$) Calc a b c d=b*c
Fire Impact Fees 18,239 1,999 $733.21 $1,466,000
Police Impact Fees 18,239 1,999 $843.21 $1,686,000
Animal Shelter Impact Fees 15,596 1,710 $24.44 $42,000
It is important to note at the fire impact fee program is designed not to be dependent on a specific capital improvement plan and specific level of new development. Only enough fee revenue will be generated for the City to expand its existing level of service to serve the growing service population.
As shown, fire impact fee revenue will contribute approximately $1.47 million and the police impact fee will contribute approximately $1.69 million (in 2023 dollars) towards the City's long-term capital improvement plan which represents new developments fair share of the plan. The City will need to fund existing development share with other funding sources. Other potential sources of funds include, but are not limited to, a general obligation bond measure, state and federal grants, the City's general fund, and existing or new special tax and assessment proceeds, if allowable.
Fee revenue may be used to fund up to 100 percent of the cost of new (added) or expansion of fire stations or new apparatus, vehicles, ambulances, and equipment added to the City's inventory. Additionally, the City many need to replace apparatus, patrol vehicles and vehicles more quickly due to the increase in service calls from the growth in the persons and structure area created by new development. Therefore, the City may use fee proceeds to fund up to 11.0 percent of apparatus, patrol vehicles, and other vehicle
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replacement costs.' This amount represents costs attributable to the increased demand for existing apparatus, patrol vechicles, and other vehicle replacement to maintain the City's existing level of service. Fee revenue may not be used to fund 1) existing deficiencies such as station renovations and 2) operational, maintenance or repair costs.
Represents percentage growth in EDUs.
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TOD SEWER IMPACT FEE
The most common way to measure the impact of development on sewer systems is by the volume of sewer flow to the system. The demand variable used in this analysis is average sewer flow in gallons per day ("GPD"). To ensure that new development pays only for capacity enhancement cost required to meet its needs, the sewer impact fee is calculated based on the anticipated volumes of sewer flow by new development.
As shown in Figure 19 below, the City's environmental engineers, Duduk, estimate that improvements for the TOD area would total $5.45 million. The results of Dudek's hydraulic model indicate that the peak dry weather sewer flows upstream of the TOD area experience a minor 8% increase as a result of estimated sewer loading from the proposed Old City Placentia redevelopment. Therefore, the 92% of the total project costs, or $5.01 million, is attributable to future development in the TOD area.
FIGURE 19 —TOD SEWER IMPROVEMENTS
Probable TOD Future
Construction Est. TOD Dev Development
Cost (2023$) 1 Share % 2 Share $
Calc a b
TOD/Old Town CIP Project Cost $5,445,646 92% $5,009,994 Source: City of Placentia; Dudek; SCI Consulting Group
Notes:
City of Placentia Sewer Master Plan TOD Area Focused Capacity Analysis by Dudek, March 2017. 2 Results of the hydraulic model indicate that the peak dry weather wastewater flows (PDWF) upstream of the TOD Zone development experience a minor 8% increase as a result of estimated wastewater loading from the proposed Old Town redevelopment.
AVERAGE DAILY SEWER FLOW (GPD)
As shown in the next two figures, average daily sewer flow is estimated to be 98,989 gallons per day ("gpd") at buildout of the TOD area. Buildout is used since the TOD is planned to be completely redeveloped. Using the total sewer improvements attributable to the TOD area from the previous table, the cost per GPD is $50.61.
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1. FIGURE 20 — AVERAGE DAILY SEWER FLOW (GPD) AT BUILDOUT Land Use Category
Calc
Ave. Daily TOD Ave. Daily
Sewer Flow Landuse Sewer Flow
per Unit Plan at at Buildout
Unit (GPD) Buildout (GPD)
a b c
Single Family Detached Housing DU 180 (13) (2,340)
Single Family Attached Housing DU 130 (3) (390)
Multi -Family Housing DU 110 1,000 110,000
Mobile Homes DU 110 0 0
Retail / Commercial KBSF 100 36 3,635
Office KBSF 150 15 2,250
Industrial KBSF 60 (236) (14,166)
Total TOD Area 799 98,989
Sources: City of Placentia Public Works Department; Dudek; SCI Consulting Group FIGURE 21 — TOD SEWER IMPROVEMENTS PER GPD
Future Development Added Sewer Flow
Share (2023 $) (GPD) Cost per GPD
$5,009,994
98,989 $50.61
Source: City of Placentia; SCI Consulting Group
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1. PAGE 30
TOD SEWER IMPACT FEE DETERMINATION
Figure 22 below presents the determination of the maximum allowable sewer impact fee for the TOD area. As shown, the sewer impact fee is determined by multiplying the cost per gallon per day for each land use category by their respective average daily sewer flow per unit plus an additional 4 percent for administration of the fee program.
It is important to note that a fee credit must be given for demolished existing housing units or nonresidential building square footage as part of a redevelopment project.
Land Use Category
Calc
FIGURE 22 — TOD SEWER IMPACT FEE
Ave. Daily
Sewer Flow Fee Total
per Unit Cost per Cost per Admin. Cost/Fee
Unit (GPD) 1 GPD 2 Unit Cost (4%) per Unit 3
a b c d=c*0.04 e=c+d
e = (c + d)/1000
Single -Family Detached DU 180 $50.61 $9,110.14 $364.41 $9,474 Single -Family Attached DU 130 $50.61 $6,579.54 $263.18 $6,842 Multi -Family DU 110 $50.61 $5,567.31 $222.69 $5,789
Mobile Homes DU 110 $50.61 $5,567.31 $222.69 $5,789
Retail / Commercial KBSF/BSF 100 $50.61 $5,061.19 $202.45 $5.26 Office KBSF/BSF 150 $50.61 $7,591.78 $303.67 $7.89
Industrial KBSF/BSF 60 $50.61 $3,036.71 $121.47 $3.15
Notes:
1 See Figure 20.
2 See Figure 21.
3 Total cost/fee is rounded down to the nearest dollar for residential land use categories and the nearest cent for nonresidential land use categories.
TOD SEWER IMPACT FEE NEXUS FINDINGS
PURPOSE OF FEE
Redevelopment of the TOD area of the City will create demand for additional sewer capacity. The purpose of this fee is to provide revenue that the City can use to help mitigate the impact new development will have on the City's sewer system.
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USE OF FEE REVENUE
Fee revenue will be used as a funding source for sewer capacity improvements in the TOD area to accommodate the projected net increase in sewer flow. Additionally, fee revenue will be used to cover fee program administration costs such as collection, documentation, annual reporting requirements, five-year report requirements, periodic Nexus Study updates, and other costs reasonably related to compliance with the Act. Fee revenue may not be used to fund operational, maintenance, or repair costs.
BENEFIT RELATIONSHIP
The TOD sewer impact fee will be collected as development occurs. Fee revenue will be used to expand the City's sewer infrastructure in the TOD area to meet the additional demand generated by new development. New development in the TOD area will contribute an additional burden to the City's sewer system. Fee revenue will be deposited into a separate account or fund in a manner to avoid any commingling of the fees with other revenues and funds of the City. The fee revenue will be restricted to the funding TOD sewer projects or repaying the City's general fund for expeditures advanced on TOD sewer projects. These actions ensure that a development project paying the fee will benefit from its use.
IMPACT RELATIONSHIP
According to the City's Sewer Capacity Study for the TOD area, redevelopment in the TOD area creates the need for additional sewer capacity.
PROPORTIONALITY RELATIONSHIP
The TOD sewer impact fee charged to new development in the TOD area is based on the cost of identified sewer capacity improvements that will need to be made to satisfy the projected increased sewer flow. The sewer capacity improvement costs are applied to seven land use categories in proportion to their average daily sewer flow per unit.
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COMPARISON OF CURRENT AND MAXIMUM DEVELOPMENT IMPACT FEES FIGURE 23 — COMPARISON OF CURRENT AND MAXIMUM PUBLIC SAFETY IMPACT FEES Current Average Total
Public Public Safety
Land Use Category Unit Safety Fee 1 Fees 1 % Change
Single -Family Detached DU / Average Size DU $1,204 $1,662 38.0% Single -Family Attached DU / Average Size DU $977 $1,351 38.3% Multi -Family DU /Average Size DU $1,109 $1,396 25.9%
Mobile Homes DU / Average Size DU $881 $1,088 23.5%
Retail / Commercial BSQFT $0.82 $1.12 36.6%
Office BSQFT $1.17 $1.60 36.8%
Industrial BSQFT $0.59 $0.80 35.6%
Notes:
1 Current public safety fee is one fee which includes fire, police, and animial control services cost components. 2 For comparison purposes, total maximum fire, police and animal safety fees for the average size unit is shown.
FIGURE 24 — COMPARISON OF CURRENT AND MAXIMUM TOD SEWER IMPACT FEES Maximum
Current TOD TOD Sewer
Land Use Category Unit Sewer Fee Fee 1 % Change
Single -Family Detached DU $6,267 $9,474 51.2%
Single -Family Attached DU $4,525 $6,842 51.2%
Multi -Family DU $3,828 $5,789 51.2%
Mobile Homes DU $3,828 $5,789 51.2%
Retail / Commercial BSQFT $3.48 $5.26 51.1%
Office BSQFT $5.22 $7.89 51.1%
Industrial BSQFT $2.08 $3.15 51.4%
Notes:
1 See Figure 22.
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FEE PROGRAM ADOPTION REQUIREMENTS
The following are the general requirements for the adoption of the Nexus Study and the new development impact fee programs ("fee programs") by the City. The specific statutory requirements for the adoption of the fee program may be found in the Mitigation Fee Act (California Govt. Code § 66000 et seq.).
1. The City Council shall conduct at least "one open and public meeting" as part of a regularly scheduled meeting on the requested fee program.
2. At least 30 days before the meeting, the City shall mail out a notice of the meeting to any interested party who filed a written request for notice of the adoption of new or increased fees.
3. At least 30 days before the meeting, the County shall make available to the public the Nexus Study for review.
4. At least 30 days before the public hearing, a notice of the time and place of the meeting shall be published twice in a newspaper of general circulation with at least five days intervening between the dates of first and last publication not counting such publication dates.
5. After the public hearing, adopt an ordinance or resolution establishing the proposed fee program on behalf of the City.
6. The fee shall become effective 60 days after the adoption of the ordinance or longer as specified by the ordinance.
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FEE PROGRAM ADMINISTRATION REQUIREMENTS
This section summarizes the statutory requirements and general recommendations for the administration of the fee program. The specific statutory requirements for the administration of the fee program may be found in the Mitigation Fee Act (California Govt.
Code § 66000 et seq.).
ACCOUNTING REQUIREMENTS
Proceeds from the new development impact fees should be deposited into a separate fund or account so that there will be no commingling of fees with other revenue or unexpended balances of the existing fee program funds. Once the old existing fee program funds have been spent, the accounts should be closed.
The new development impact fees should be expended solely for the purpose for which they were collected. Any interest earned by such account should be deposited in that account and expended solely for the purpose for which originally collected.
REPORTING REQUIREMENTS
The following information, entitled "Annual Report," must be made available to the public within 180 days after the last day of each fiscal year:
■ a brief description of the type of fee in the account; ■ the amount of the fee;
■ the beginning and ending balance of the account;
■ the fees collected that year and the interest earned; ■ an identification of each public improvement for which the fees were expended and the amount of the expenditures for each improvement; ■ an identification of an approximate date by which development of the improvement will commence if the local agency determines that sufficient funds have been collected to complete financing of an incomplete public improvement; ■ a description of each inter -fund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, the date on which any loan will be repaid, and the rate of interest to be returned to the account; and
■ the amount of money refunded under section Govt. Code § 66001.
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The City shall review the Annual Report at the next regularly scheduled public meeting, not less than 15 days after the Annual Report is made available to the public. Notice of the time and place of the meeting, including the address where this information may be reviewed, shall be mailed, at least 15 days prior to the meeting, to any interested party who files a written request with the City for mailed notice of the meeting. Any written request for mailed notices shall be valid for one year from the date on which it is filed unless a renewal request is filed. Renewal requests for mailed notices shall be filed on or before April 1 of each year. The City Council may establish a reasonable annual charge for sending notices based on the estimated cost of providing the service.
For the fifth fiscal year following the first receipt of any development impact fee proceeds, and every five years thereafter, the City must comply with Government Code Section 66001(d)(1) by affirmatively demonstrating that the City still needs unexpended Development impact fees to achieve the purpose for which it was originally imposed and that the City has a plan on how to use the unexpended balance to achieve that purpose.
Specifically, the City shall make the following findings, entitled "Five -Year Findings Report," with respect to that portion of the account or fund remaining unexpended, whether committed or uncommitted:
• Identify the purpose to which the fee is to be put;
• Demonstrate a reasonable relationship between the fee and the purpose for which it is charged;
• Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements; and
• Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.
The City shall provide for the refund of all or any part of such unexpended or unappropriated fee revenue, together with any actual interest accrued thereon, in the manner described in Government Code § 66001 (e) of the, to the current record owner of any property for which a fee was paid; provided that if the administrative costs of refunding such fee revenue exceed the amount to be refunded.
TRANSPARENCY REQUIREMENTS
The City must clearly post the following information on the City's website regarding the fee program:
• The current fee schedule indicated the effective date when adopted by the City Council.
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■ Current and five previous annual accounting reports.
■ Current and any previous Development Impact Fee Nexus Study conducted after January 1, 2018.
ANNUAL INFLATIONARY ADJUSTMENT
The cost estimates in this Nexus Study are in January 2023 dollars. The fees will need to be adjusted annually commensurate with changes in construction costs. The development impact fees should be adjusted on the first day of each fiscal year by the net percentage change from April to April of the preceding calendar in the Engineering News -Record Construction Cost Index for Los Angeles, or its successor publication.
FEE EXEMPTIONS
The following development projects are exempted from payment of the fee:
■ A structure owned by a governmental agency.
■ A structure which is being reconstructed following damage or destruction by fire or another casualty, or the voluntary demolition thereof, provided that the number of structures or the size in such reconstructed structure is no greater than the number of structures or the size of the structure prior to such damage, destruction or demolition.
■ An accessory dwelling unit less than 750 square feet. ■ A structure found to have no impact on applicable City facilities.
FEE CREDITS
In order to comply with the Act and recent court cases, a fee credit must be given for demolished existing square footage as part of a redevelopment project. Additionally, subject to certain restrictions, if a developer dedicates land, constructs facilities, or improvements for the City, the fee imposed on that development project may be adjusted to reflect a credit for the cost of the dedicated land, facilities constructed, or improvements provided.
NEXUS STUDY UPDATES
This Nexus Study and the fee programs must be updated at least every eight years. The next Nexus Study update is due no later than January 1, 2031.
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APPENDICES
Appendix A — Resident Equivalent Demand Factor
Appendix B — Existing Facilities, Vehicles, and Equipment PAGE 38
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APPENDIX A - RESIDENT EQUIVALENT DEMAND FACTOR
Resident equivalent demand factor is determined by comparing City residents and employees based on commute patterns and the estimated proportion of "waking" hours spent at work. Residents who work outside the City are estimated to spend an average of about 66 percent of their time in the City relative to those who do not work or whom both live and work in the City (2,000 hours divided by 5,840 hours). To avoid double counting, the time for residents who both live and work in the City is allocated based on the proportion of waking hours at work (34 percent) versus elsewhere (66 percent). After accounting for commute patterns, the typical worker is estimated to have a service demand equal to 43.6 percent of the typical resident.
FIGURE 25 — RESIDENT EQUIVALENT DEMAND FACTOR
Residents
and Jobs 1
Calc
Distribution
a/
0 a
Weighted
Weight 2 Average Normalized
b c=a*b
Residents
Not In Labor Force 19,313 38% 100% 38%
Employed in the City 1,585 3% 66% 2%
Employed Outside the City 30,569 59% 66% 39%
Total Residents 51,467 100% 79% 100.0%
Jobs
Live in the City 1,585 9% 34% 3%
Live Outside the City 16,447 91% 34% 31%
Total Jobs 18,032 100% 34% 43.6%
Sources: 2020 U.S. Census; SCI Consulting Group
Notes:
1 Based on commute patterns data from the U.S. Census Bureau for the City. 2 Weighting based on percentage of waking hours in a year (5,840) and percent of waking hours at work (2,000).
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APPENDIX B - EXISTING FACILITIES, VEHICLES, AND EQUIPMENT FIGURE 26 — EXISTING FIRE FACILITIES
Fire Station Units
Calc a
Station 1, 110 S. Bradford Avenue
Land 0.22 acres
Buldings 3,602 sq. ft.
Station 2, 1530 Valencia Avenue
Land 0.68 acres
Buldings 5,100 sq. ft.
Unit Cost
b
$2,250,000 per acre
$800.00 per sq. ft.
$2,250,000 per acre
$800.00 per sq. ft.
Total Replacement Cost (Land and Buildings)
Source: Placentia Fire Department; SCI Consulting Group Replacement
Cost (2023$)
c=a*b
$495,000
$2,881,600
$1,530,000
$4,080,000
$8,986,600
FIGURE 27 — EXISTING FIRE APPARATUS, VEHICLES, AND EQUIPMENT Make / Model
Seagrave Type I Engine
Seagrave Type I Engine
Seagrave Quint 100' Aerial Ladder
HME Type VI Mini Pumper
Ford F350 Battalion Chief Unit
Ford F350 Battalion Chief Unit
Ford F150 Service Truck
Ford Explorer Deputy Chief Unit
Ford Mach E Fire Chief Unit
Apparatus /
Vechicles
Replacement
Equipment Value (2023$)
$750,000 $95,000 $845,000
$750,000 $95,000 $845,000
$1,500,000 $95,000 $1,595,000
$350,000 $55,000 $405,000
$175,000 $22,500 $197,500
$175,000 $22,500 $197,500
$55,000 $12,000 $67,000
$120,000 $22,500 $142,500
$80,000 $12,000 $92,000
Total Apparatus and Equipment $3,955,000 $431,500 $4,386,500 Source: Placentia Fire Department; SCI Consulting Group
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FIGURE 28 — EXISTING POLICE FACILITIES, PATROL VEHICLES, AND EQUIPMENT Facility
Calc
Replacement
Amount Unit Cost Cost (2023$)
a b c=a*b
Police Headquarters'
Land 1.84 acres $2,250,000 per acre $4,140,000
Buildings 11,000 sq. ft. $800 sq. ft. $6,658,905
Vehicles 53 each $31,132 ave. each $1,650,000
Equipment $3,006,629
Total Existing Public Safety Facilities $15,455,534
Source: City of Placentia; SCI Consulting Group
Notes:
' Building area and land acres shown for represents 50% of the City Civic Center.
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