DATE: APRIL 9, 2024
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: ADRIANA ROBLES, CITY ENGINEER
TITLE: SANITARY SEWER DEVELOPMENT IMPACT FEE UPDATE FOR FY 2024-2025 RECOMMENDED MOTION:
A motion to recommend to the City Council approval of a Resolution updating the Sanitary Sewer Development Impact Fee Schedule.
EXECUTIVE SUMMARY:
Requesting the Finance Committee to recommend to the City Council to approve a resolution updating the Sanitary Sewer Development Impact Fee schedule effective July 1, 2024. The Sanitary Sewer Development Impact Fee schedule update modifies the impact fees to align with the adopted Sanitary Sewer Master Plan Update and AB 602.
BACKGROUND:
California Government Code Sections 66000-66008, also known as the Mitigation Fee Act, provides local jurisdictions the authority to impose fees as a condition of approval of a development project to cover all or a portion of the cost of public facilities affected by the project. The Mitigation Fee Act broadly defines public facilities to include public improvements, public services, and community amenities. The Act also contains specific requirements for establishing, increasing, and imposing impact fees, as well as for the collection and expenditure of those fees, and required annual reporting and periodic re-evaluation of the fee program (nexus study).
Pursuant to California Government Code and Article V of Chapter 9 of the Salinas Municipal Code, the City imposes development impact fees on development to fund improvements to capital infrastructure and facilities required to accommodate and service development (Development Impact Fees).
Appropriately adjusted development impact fees are a benefit to the community and to Developers alike. The public benefits by being able to improve or expand facilities as necessary to accommodate growth. Developers benefit by being able to mitigate certain impacts caused by their project on a fair share basis. This reduces the burden of a developer to solely mitigate a large impact caused by cumulative development. In other words, no single developer is solely responsible to upsize a major sewer main if this is required to service other proposed developments.
On May 2, 2023, City Council adopted the Sanitary Sewer Master Plan Update (SSMP) which updated the 2011 Sanitary Sewer Master Plan. The SSMP analyzed priority sewer main lines, manholes and pump stations. The consultant for the SSMP developed and calibrated a hydraulic sewer model to identify collection system deficiencies for existing and future build-out conditions. The SSMP identified 21 operation and maintenance repair projects and prioritized priority projects. In order to adequately fund projects impacted by development, a nexus study was developed (Attachment). The nexus study analyzed the land use and project data of the SSMP and developed a fee consisted with AB 602 which requires assessment of impact fees based on square footage of building area. The proposed fee also includes a 2% administrative charge which will account for staff time in preparation of fee administration and updates.
The proposed Sanitary Sewer Development Impact Fee Schedule is as follows:
Residential: $ 1.2847 per square foot of building area Commercial: $ 1.1215 per 1000 square foot of building area Industrial: $ 0.5608 per 1000 square foot of building area Outreach
Chamber of Commerce. City staff provided the Update to the Sanitary Sewer Development Impact Fee to the Salinas Valley Chamber of Commerce via email on March 12, 2024. A revised fee schedule including the 2% administrative charge was provided on March 27, 2024. The email provided the proposed fee update along with the dates of the public meetings. No comments have been received from the members of the Chamber of Commerce to date.
Salinas United Business Association. City staff provided the Update to the Sanitary Sewer Development Impact Fee to the Salinas United Business Association (SUBA) via email on March 12, 2024. A revised fee schedule including the 2% administrative charge was provided on March 27, 2024. The email provided the proposed fee update along with the dates of the public meetings. No comments have been received from the members of the SUBA to date.
Development Community. City staff provided the Update to the Update to the Sanitary Sewer Development Impact Fee to members of the development community including Future Growth Area developers and the Central Coast Builders Association via email on March 12, 2024. A revised fee schedule including the 2% administrative charge was provided on March 27, 2024. The email provided the proposed fee update along with the dates of the public meetings. No comments have been received from the development community to date.
Public Notice
Sixty (60) day public hearing notice for the Update to the Sanitary Sewer Development Impact Fee was published in a local newspaper on April 4, 2024, and April 11, 2024.
CEQA CONSIDERATION:
Not a Project. City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) pursuant to Sections 15378 and 15061(b)(3).
STRATEGIC PLAN INITIATIVE:
Updating Development Impact Fees to mitigate impacts from development on existing sewer systems is consistent with the Council values of Fiscal Responsibility, Service and Responsiveness and Council Goals and Strategies of Economic Development, Housing, Infrastructure, and Public Safety by investing in existing facilities and infrastructure, reducing City expenditures to address impacts due to growth, and by providing adequate funding for improvement needed to allow for growth.
DEPARTMENTAL COORDINATION:
Public Works staff has consulted with other City Departments to develop the recommendation herein, including Administration, Finance, and Legal. Should the City Council approve the recommendation, Public Works will continue to collaborate with these departments, along with Community Development.
FISCAL AND SUSTAINABILITY IMPACT:
There is no fiscal impact related to this item at this time. Imposing and updating development impact fees allows the City to be more fiscally responsible and sustainable.
ATTACHMENTS:
DTA Development Impact Fee Justification
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CITY OF SALINASFINANCE COMMITTEE STAFF REPORTCITY OF SALINASFINANCE COMMITTEE STAFF REPORT
CITY OF SALINAS
FINANCE COMMITTEE STAFF REPORT
CITY OF SALINAS
FINANCE COMMITTEE STAFF REPORT