Development Impact Fees - 2022
1 Agenda
• Project Background
• Overview of Development Impact Fees
• Summary Tables by Development Type
• Sample Project Calculations
• Steps Taken/Feedback Received To Date
• Next Steps
• Comments/Questions
2 Background
• Most DIF Fees last updated between 2006-2008
• Project initiated in October 2019; planned for completion in March 2020
• DIF Study
• City-wide User Fee Study
• Cost Allocation Plan
• Separate studies for Sewer (February 2022) & Drainage (July 2021) • Changes since project initiation:
• Significant delays due to the COVID-19 pandemic
• Reorganization & Staffing Changes
• New legislation - AB 602 (Water and Sewer Impact Fee calculations still governed by Gov Code 66013) 3
About Impact Fees
• Imposed as a Condition of Development Approval…
• To Pay for Capital Facilities Needed to Serve New
Development
• May Not Be Used to Pay for Maintenance or
Operations
• Governed by Constitutional Case Law and California
Statutes including the Mitigation Fee Act
4 Impact Fees – Legal Justification
Legally, Impact Fees Require a “Nexus” (Case Law) or
“Reasonable Relationship” (Mitigation Fee Act) Between
the Fees and the Impacts of Development
• Development Must Create a Need for Facilities
Funded by Impact Fees
• Development Must Benefit from Facilities Funded
by Impact Fees
• Impact Fees Must Be Proportional to the Impact of
Development
5 Impact Fees – AB 602
• Passed and Signed into Law in 2021
• Requires Impact Fees to Be Based on the Existing
Level of Service, Unless Other Basis Can Be Justified
• Requires Residential Impact Fees Adopted After July 1, 2022, to be Proportionate to Square Footage
• Large Jurisdictions Must Adopt a CIP as Part of the
Nexus Study
• Requires Online Posting of Impact Fee Information
6 Impact Fees – Study Process
• Establish Baseline of Existing Development and
Forecast of Future Development
• Analyze Facility Needs Using Level of Service
Standard/Existing Level of Service for Each Facility
• Quantify Impacts of Development on the Need for
Additional Facilities
• Compile Cost Estimates for Future Facilities
• Allocate Costs of Needed Facilities to Various Types
of Development and Calculate Impact Fees
7 Impact Fees – Quantifying Impacts
How Do We Measure the Impacts of Development on Different Types of Facilities?
• Population for Parks, Recreation, Libraries, etc.
• Service Population (A Weighted Composite of Resident
Population and Jobs in the City) for General Government • Calls for Service for Police and Fire
• Added Runoff for Drainage
• Water Use and Wastewater Flow, or Projected Number of New Meters/EDUs
8 Park & Recreation Facilities
• Purpose: Fund park land acquisition, park development and facilities to maintain the City’s current level of
service
• Last Update: 2006 - Resolution No. 06-151
• Service Area: City limits
• Demand Variable: Population
• Nexus: Increased use and need for park & recreational facilities due to new development
• Projects: Sports complex; aquatics center; walking trails; additional land and recreation amenities per Park &
Recreation Master Plan – 2020
9 Fire Protection Facilities
• Purpose: Fund fire protection & emergency response
facilities, apparatus and equipment to maintain the
City’s current level of service
• Last Fee Update: 2006 - Resolution No. 06-151
• Service Area: City limits
• Demand Variable: Calls for service per year
• Nexus: Increased demand for fire protection facilities, apparatus and equipment to serve new
development
• Projects: Future Fire Station 316; Brush Engines; Medic Squad Vehicles; Ladder Truck; Type I Fire Engine
10 Police Facilities
• Purpose: Fund police facilities, vehicles and equipment to maintain the City’s current level of service
• Last Fee Update: 2006 - Resolution No. 06-151
• Service Area: City limits
• Demand Variable: Population
• Nexus: Increased demand for police facilities, vehicles and equipment to serve new development
• Projects: Additional square footage - Police Station; Fleet & equipment expansion
11 Public Buildings
• Purpose: Fund public buildings, vehicles and equipment for general services to maintain the City’s current level
of service
• Last Fee Update: 2006 - Resolution No. 06-151
• Service Area: City limits
• Demand Variable: Population
• Nexus: Increased demand for public facilities, vehicles and equipment to serve new development
• Projects: Facilities Maintenance Yard; City Hall Security Upgrades; Parks Maintenance Yard; City Facility
Fleet & Equipment Expansion
12 Libraries
• Purpose: Fund additional library facilities and materials needed to maintain the City’s current level of service
• Last Fee Update: N/A – New DIF category
• Service Area: City limits
• Demand Variable: Population
• Nexus: Increased demand for library facilities and materials to serve new development
• Projects: Future library facilities & materials
13 Water System Improvements
• Purpose: Fund capacity charges for water system
improvements and water rights for the Victorville
Water District (VWD) to serve future development
• Last Fee Update: 2013 – Resolution VWD 13-003
• Service Area: VWD service area, including areas in sphere of influence • Demand Variable: Average Daily Demand
• Nexus: Not required by Mitigation Fee Act, but study establishes nexus based on burden imposed by new development on
the water system; Alternate Water Source Fee component. • Projects: Water distribution pipelines; reservoir storage; ground water wells (Water Master Plan updated in 2021)
14 Road Improvements
• Purpose: Fund road, bridge, interchange and traffic signal capital improvement projects to maintain the City’s
current level of service per Circulation Element of
the Victorville General Plan
• Last Fee Update: 2008 – Resolution No. 08-064
• Service Area: City limits
• Demand Variable: Peak hour trip generation
• Nexus: Road, bridge, interchange and traffic signal projects to serve new development
• Projects: I-15 interchanges, bridges, new and widened arterial roads, and traffic signals to increase capacity
15 Sewer Capacity
• Purpose: Fund capital improvement projects to increase capacity of the sewer collection system. Based on
future development’s proportional share of the
costs.
• Last Fee Update: 1991 – Resolution No. 91-219
• Service Area: City limits
• Demand Basis: Equivalent Dwelling Units (EDU)
• Projects: Additional/larger sewer mains (Sewer Master Plan Update in 2016)
16 Administrative Fee
• Purpose: Cost recovery for accounting, reporting and as well as periodic updates to the impact fee study.
• Last Fee Update: N/A – New Fee
• Service Area: City limits
• Nexus: Administrative costs associated with administering a DIF program in compliance with the Mitigation Fee
Act.
• Fee: 0.20% to be added to all DIF categories
17 Regional Drainage – DTA Study
• Purpose: Fund increased capacity for the regional drainage system to convey stormwater flows to maintain the
City’s current level of service
• Last Fee Update: 1990 – Resolution No. 90-158
• Service Area: City & SCLA Master Plan area
• Nexus: Additional facilities to capture stormwater runoff generated by new development
• Projects: New regional storm drainpipes, channels, basins and box culverts per Project List in the Study
18 Storm Drainage Facilities to be Built through 2050
• Cost of Storm Drainage systems are correlated to the amount of runoff delivered to City streets for both residential and non-residential development • Fee Study resulted in 44.59% of costs being allocated to existing development and 55.41% of costs to be allocated to new development. • Amount estimated to be financed by new development through 2050:
$154,288,875
19 Summary
Tables
20 Summary Table of Existing Citywide Impact Fees
21 Development Type Unit
Type
1 Parks &
Recreation Library Fire Police Public
Buildings Roads Total
Residential – Single Family DU $5,046 $329 $139 $1,334 $4,470 $11,318 Residential – Multi-Family DU $3,847 $232 $98 $717 $2,745 $7,639 Residential – Mobile Home Park* DU $3,847 $232 $98 $717 $2,745 $7,639 Commercial KSF $170 $170 $1,340 $7,600 $9,280
Professional Office** KSF $170 $170 $1,340 $7,600 $9,280 Lodging** Room $170 $170 $1,340 $7,600 $9,280
Industrial KSF $10 $10 $440 $2,980 $3,440
High-Cube Warehouse KSF $20 $20 $250 $1,580 $1,870
Self-Service Storage*** KSF $10 $10 $440 $2,980 $3,440
Gasoline/Service Station** Pump $170 $170 $1,340 $7,600 $9,280 Institutional** KSF $170 $170 $1,340 $7,600 $9,280
¹ 1 DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Pump = vehicle fueling position
*Assessed as a Residential-Multi-Family project.
**Assessed as a Commercial project.
***Assessed as an Industrial project.
Summary Table of Proposed Citywide Impact Fees including Administration Charge 22 Development Type Unit
Type
1 Parks &
Recreation Library Fire Police Public
Buildings Roads Total
Residential - Detached DU $6,956 $253 $285 $292 $1,201 $9,644 $18,631 Residential - Attached DU $4,910 $179 $375 $207 $849 $5,455 $11,974 Residential - Mobile Home Park DU $4,296 $156 $240 $181 $743 $4,481 $10,098 Retail/Service Commercial KSF $487 $105 $430 $37,116 $38,138 Professional Office KSF $667 $84 $344 $11,203 $12,298
Lodging Room $247 $47 $192 $3,702 $4,188
Industrial/Business Park KSF $52 $28 $113 $5,163 $5,357 High-Cube Warehouse KSF $7 $19 $78 $974 $1,079
Self-Service Storage KSF $22 $1 $4 $1,656 $1,683
Gasoline/Service Station Pump $629 $12 $51 $47,735 $48,428 Institutional KSF $67 $23 $94 $6,332 $6,516
¹ 1 DU = dwelling unit; KSF = 1,000 gross square feet of building area; Room = guest room or suite; Pump = vehicle fueling position
Summary Table: Water System Improvement*by Meter Size
Meter Size Current Fee Proposed Fee¹
¾” $5,142.00 $5,686.59
1” $7,672.00 $9,496.61
1 ½ “ $16,671.00 $18,936.34
2” $16,954.00 $30,309.52
3” $54,129.00 $56,865.90
4” $90,250.00 $94,795.46
6” $180,464.00 $189,534.04
8” $283,291.00 $303,265.84
¹ Administrative fee not included.
* Current fee assess an Alternate Water Source Fee; Proposed fee includes a fee component for the same purpose. 23 Summary Table: Sewer Capacity per EDU
Meter Size Current Fee Proposed Fee¹
Collection System $350 $2,867
¹ Administrative fee not included.
24 Summary Table: Regional Drainage System
Land Use Current Fee Current Unit Proposed Fee¹ Proposed Unit Single Family $2,585 Acre $2,392.00 Dwelling
Multi-Family $2,585 Acre $1,239.00 Dwelling
Non-residential $2,585 Acre $21,526.00 Acre
¹ Administrative fee not included.
• Single-family & multi-family residential fees are calculated per housing unit; non-residential development fees are calculated per acre • The cost estimates in the Fee Study are in 2021 dollars • The resolution establishing the new DIF fees should include a provision for an annual inflationary adjustment
25 Example
Projects
26 Example Project: Single Family Home - 2,000 Sq. Ft.
DIF Category Current Fee Proposed Fee % Difference
Parks $5,045.87 $6,941.98 38%
Fire $328.81 $284.20 -14%
Police $139.07 $291.65 110%
Public Buildings $1,334.35 $1,198.47 -10%
Library New $252.72 N/A
Roads $4,469.90 $9,625.17 115%
Water¹ $5,142.00 $5,686.69 11%
Sewer² $350.00 $2,867.00 719%
Storm Drain³ $646.25 $2,392.00 270%
Admin Fee New $59.08 N/A
Total $17,456.25 $29,598.86 70%
¹ Fee calculated for a ¾” Main
² Fee calculated at 1 EDU.
³ Fee calculated at 0.25 Acre for proposed fee.
27 Example Project: Apartment Complex – 272 Dwelling Units, 22.32 Acres DIF Category Current Fee Proposed Fee % Difference
Parks $1,046,416.64 $1,332,859.84 27%
Fire $63,139.36 $101,714.40 61%
Police $26,704.96 $56,072.80 110%
Public Buildings $195,010.40 $230,419.36 18%
Library New $48,522.08 N/A
Roads $746,536.64 $1,480,914.88 98%
Water¹ $283,291.00 $303,265.84 7%
Sewer $76,107.50 $623,429.15 719%
Storm Drain $57,691.00 $480,408.66 733%
Admin Fee New $9,315.21 N/A
Total $2,494,897.50 $4,666,922.22 87%
¹ Assumes: 8” Water Meter 28
Example Project: Mobile Home Park, 70-Unit, 9.94 Acres
DIF Category Current Fee Proposed Fee % Difference
Parks $269,298.40 $300,160 11%
Fire $16,249.10 $16,730 3%
Police $6,872.60 $12,600 83%
Public Buildings $50,186.50 $51,940 3%
Library New $10,920 N/A
Roads $192,123.40 $673,750 251%
Water¹ $54,129 $56,865 5%
Sewer $24,500 $200,690 719%
Storm Drain $25,694.40 $86,730 238%
Admin Fee New $2,820.77 N/A
Total $639,053.90 $1,413,205.77 121%
¹ Assumes: 3” Water Meter 29
Example Project: Department Store – 10,640 Sq. Ft., 1.19 Acres DIF Category Current Fee Proposed Fee % Difference
Fire $1,808.80 $5,171.04 186%
Police $1,808.80 $1,106.56 -39%
Public Buildings $14,257.60 $4,654.56 -67%
Roads $80,684 $394,126.88 388%
Water¹ $12,814 $15,163 18%
Sewer $577.50 $4,730.55 719%
Storm Drain $3,076.15 $25,615.94 733%
Admin Fee New $901.14 N/A
Total $115,206.85 $451,469.67 292%
¹ Assumes: 1” and ¾“ Water Meter
30 Example Project: Office Building – 16,506 Sq. Ft.; 0.99 Acres DIF Category Current Fee Proposed Fee % Difference
Fire $2,806.02 $10,993 292%
Police $2,806.02 $1,386.50 -51%
Public Buildings $22,118.04 $5,678.06 -74%
Roads $125,445.60 $184,553.59 47%
Water¹ $43,625 $49,283 13%
Sewer $2,415 $19,782.30 719%
Storm Drain $2,559.15 $21,310.54 733%
Admin Fee New $585.97 N/A
Total $201,774.83 $293,572.96 45%
¹ Assumes: 1-1/2” and 2” Water Meters 31
Example Project: Hotel – 59,942 Sq. Ft. vs. 105-Unit; 9.625 Acres DIF Category Current Fee Proposed Fee % Difference
Fire $10,190.14 $25,935 155%
Police $10,190.14 $4,935 -52%
Public Buildings $80,322.28 $20,055 -75%
Roads $455,559.20 $387,975 -15%
Water¹ $59,050 $66,342 12%
Sewer $18,410 $150,804.20 719%
Storm Drain $24,880.63 $207,187.75 733%
Admin Fee New $1,726.47 N/A
Total $658,602.39 $864,960.42 31%
¹ Assumes: 2-1/2” Meter and 1-3/4” Irrigation Meter
32 Example Project: Industrial/Business Park – 32,182 Sq. Ft., 2.75 Acres DIF Category Current Fee Proposed Fee % Difference
Fire $1,539.41 $1,673.46 9%
Police $1,539.41 $901.10 -41%
Public Buildings $21,009.07 $3,636.57 -83%
Roads $130,984.49 $165,833.85 27%
Water¹ $34,626 $39,805 15%
Sewer $3,570 $29,243.40 719%
Storm Drain $7,108.75 $59,196.50 733%
Admin Fee New $600.58 N/A
Total $200,377.13 $300,890.46 50%
¹ Assumes: 1” Meter and 2” Meter
33 Example Project: High Cube Warehouse – 461,241 Sq. Ft., 52.71 Acres DIF Category Current Fee Proposed Fee % Difference
Fire $9,224.82 $3,228.69 -65%
Police $9,224.82 $8,763.58 -5%
Public Buildings $115,310.25 $35,976.80 -69%
Roads $728,760.78 $448,326.25 -38%
Water¹ $53,908 $60,656 13%
Sewer $1,592.50 $13,044.85 719%
Storm Drain $136,255.35 $1,134,635.46 733%
Admin Fee New $3,409.26 N/A
Total $1,054,276.52 $1,708,040.89 62%
¹Assumes: (2) 2” Water Meter
34 Example Project: Self-Service Storage – 14,520 Sq. Ft., 2.75 Acres DIF Category Current Fee Proposed Fee % Difference
Fire $145.20 $319.44 120%
Police $145.20 $14.52 -90%
Public Buildings $6,388.80 $58.08 -99%
Roads $43,269.60 $24,001.56 -45%
Water¹ $7,672 $9,477 24%
Sewer $350 $2,867 719%
Storm Drain $7,108.75 $59,196.50 733%
Admin Fee New $191.87 N/A
Total $65,079.55 $96,125.97 48%
¹ Assumptions: 1” Water Meter; 1 Manager’s Unit (1 EDU) 35 Example Project: Gas Station with Convenience Store
DIF Category Current Fee Proposed Fee¹ % Difference
Fire $1,253.75 $9,577.12 664%
Police $1,253.75 $580.80 -54%
Public Buildings $9,882.50 $2,418.80 -76%
Roads $56,050 $728,707.20 1200%
Water² $15,344 $18,954 24%
Sewer $1,312.50 $10,751.25 719%
Storm Drain $3,102 $25,831.20 733%
Admin Fee New $4,272.51 N/A
Total $88,198.50 $801,092.88 808%
¹ Assumes: Convenience Store charged as retail/service commercial; canopy charged as Gasoline/Service Station. ² Charged (2) 1” Meters. 36
Steps Taken Prior to Workshop
• Draft studies distributed to stakeholders March 4th
• Stakeholder meeting held March 10th
• Recording of stakeholder meeting, studies & presentation posted on City website March 11th
37 Feedback Received
• Consider a phased approach to implementation
• Consider grandfathering projects that are substantially ready or underway • Consider participation in infrastructure financing programs (repaid through property assessments):
• Statewide Community Infrastructure Program (SCIP) - CSCDA • Bond Opportunities for Land Development (BOLD) – CMFA • Concerns about impact to development - affordable housing production 38 Next Steps
• Collect additional feedback & finalize draft studies
• Publish staff recommendations and final studies – April 2022 • Public Hearing at City Council meeting – May 2022
39 Questions
40