March 22, 2022
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Background
Infrastructure Fee Concept
City Council
Meeting
Item #8 — 22-90
Item No. 8 — 22-90
Public Hearing: Action on a
Resolution and Ordinance for
the Patrick Henry Drive
Specific Plan Infrastructure
Impact Fee
March 22, 2022
• Establish an Infrastructure Impact Fee for equitable
distribution of common infrastructure costs
• One-time fee charged to new residential or office development w Fees used to finance capital facility/infrastructure costs • Fees based on a reasonable relationship (i.e., nexus) • Nexus Study -Economic &Planning Systems, Inc.
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~'~S~ MEETINGi IVI~►7ERIA~ 1
Infrastructure Items
Improvements Total - $103,658,040
• Sanitary sewer upgrades
• Water improvements (potable and recycled)
• Stormwater treatment facilities
• Roadway facilities (traffic improvements, traffic fair share payments, pavement repair, and new public access streets) • Emergency response vehicle and tiller aerial ladder apparatus • Entry monuments and signs
3 Infrastructure Fee
TOfQl COSfS (FY2021-2022 ~~
Improvements $103,658,040
Transportation Management Association $150,000
Formation
2% annual staff fee administration* $2,076,161
Total $105,884,201
*$69,205 annually for 3o-years
4 3
2 Infrastructure Fee
Total Common Infrastructure Cost a $105,884,201
Number of New Residential Units b 11,000*
Fee per New Residential Unit c = a / b $9,626
Fee per New Office SF Fee equivalency $21
per nexus study
* Currently, developers/property owners have shotun interest in a total of il,000 units s
5 Infrastructure Fee
Additional Considerations Outreach &Coordination
• Developers can build
improvements and receive
fee credits or
reimbursement
• Adjust fee annually
• Close coordination with
PHDSP developer
representatives
• City website and outreach
email to development
community
• Property owner mailers
• Two newspaper notices
6 3
Recommendation1. Waive First Reading and Approve the Introduction of an Ordinance Amending Chapter i~.i5 "Property Development" of Title i~ "Development" of the Santa Clara City Code to Add Section 1~.i5.36o "Patrick Henry Drive Infrastructure Improvement Fee";
2. Adopt a Resolution Approving the Findings from the Patrick Henry Drive Specific Plan Infrastructure Impact Fee Nexus Study, Adopting the Nexus Study, and Setting the Rates for the Infrastructure Impact Fee;
3. Approve the Patrick Henry Drive Specific Plan Infrastructure Impact Fee; and adjust fees annually in line with the latest Construction Cost Index for San Francisco, as published by Engineering News Record or equivalent, to keep up with construction costs and inflation; and
4. Approve the establishment of the Patrick Henry Drive Infrastructure Improvement Fund (Fund 542) to account for the impact fee revenues and project expenditures. 7 \M~ssioN `%
City Council
Meeting
Item #8 — 22-90
Public Hearing: Action on a
Resolution and Ordinance for
the Patrick Henry Drive
Specific Plan Infrastructure
Impact Fee
March 22, 2022
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