Attachment B
RESOLUTION NO. VWD 24-011A RESOLUTION OF THE BOARD OF DIRECTORS OF THE VICTORVILLE WATER DISTRICT ADOPTING THE WATER DISTRICT RELATED PORTIONS OF THE UPDATED CAPITAL IMPROVEMENT PLAN, REVISED CITY COUNCIL POLICY NO. CP-24-05, AND THE WATER DISTRICT RELATED PORTIONS OF THE UPDATED MASTER FEE SCHEDULE FOR DEVELOPMENT IMPACT FEES AND CAPACITY CHARGES WHEREAS, the Victorville Water District (the “District”), is a county water district and subsidiary district of the City of Victorville (the “City” or “Victorville”); and WHEREAS, the District constructs, owns, operates, improves, and maintains the water system and related facilities and infrastructure that serves the District's existing customers and provides water service availability to new customers and new development within the jurisdictional boundaries of the District; and WHEREAS, pursuant to Government Code Section 66013 (a part of the Mitigation Fee Act, Government Code § 66000 et seq.) the District is authorized to establish and impose facility capacity charges for public facilities in existence at the time a charge is imposed or for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged, including supply or facility capacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local agency involving capital expense relating to its use of existing or new public facilities (“Water System Capacity Charges”); and WHEREAS, the governing bodies of local agencies, including the District Board of Directors (“District Board”), may approve and adopt fee studies and charges, including those associated with Water System Capacity Charges, by resolution; and WHEREAS, the District Board must periodically review Water System Capacity Charges to ensure they are sufficient to mitigate the impacts of new development on the associated capital facilities and other improvements needed to maintain the existing level of public service and to ensure they reflect the estimated reasonable costs of providing the improvements and facilities for which they are being charged; and WHEREAS, on June 7, 2022, by means of Resolution No. VWD 22-005, the District Board adopted the relevant portion of a report from NBS. Government Finance Group entitled “City of Victorville Development Impact Fee Study (the “Nexus Study”), Chapter 8 of which provided the calculation basis and methodology for the proposed Water System Capacity Charges and reflected the estimated, reasonable costs of constructing the water improvements and facilities for which said fees are being charged; and WHEREAS, on June 7, 2022, in accordance with the requirements of the Mitigation Fee Act and by means of adopting Resolution No. VWD-22-005, the District Board adopted those portions of a Capital Improvement Plan that established public facilities pursuant to Government Code section 66000(d) which the Water System Capacity Charges would fund; and WHEREAS, Chapter 8 of the Nexus Study established the updated maximum Water System Capacity Charges for the District’s water system improvements associated with new development, which said maximum included a new percentage component for administration of the City’s Development Impact Fees program; and WHEREAS, there is no requirement to implement fees/charges at the maximum rate determined through the Nexus Study and/or at the maximum increased rates as calculated annually, and it is within the discretion of the District Board to establish fees/charges at an amount less than the maximums to further the strategic goals of the City; and WHEREAS, the District Board also adopted Resolution No. VWD 22-005 on June 7, 2022 which resolution approved: (1) City Council Policy No. CP-22-01 (“CP-22-01”) creating policy guidelines for implementation of the new and updated Development Impact Fees and Sewer and Water System Capacity Charges, including a four-year phase-in plan to foster and encourage residential development; and (2) a Development Impact Fee and Capacity Charges Master Fee Schedule imposing the new and updated fees and charges established by the Nexus Study in accordance with CP-22-01; and WHEREAS, on December 19, 2023, the District Board adopted Resolution No. VWD 23-015, approving: (1) an updated Master Fee Schedule for Development Impact Fees and Capacity Charges for 2024; (2) City Council Policy No. CP-23-02 (“CP-23-02”), which superseded and replaced CP-22-01; and (3) an updated Capital Improvement Plan for 2024; and WHEREAS, City Council Policy No. CP-23-02 requires annual review of: (1) the Master Fee Schedule for Development Impact Fees and Capacity Charges; (2) the City Council Policy; and (3) the Capital Improvement Plan, as well as annual adjustment of the applicable Development Impact Fees and Capacity Charges in the Master Fee Scheule by applying the California Construction Cost Index (CCCI) to account for inflation; andWHEREAS, the Master Fee Schedule for Development Impact Fees and Capacity Charges (attached hereto as Exhibit A), in combination with updated City Council Policy No. CP-24-05 (attached hereto as Exhibit B), and the Capital Improvement Plan for 2025 (attached hereto as Exhibit C), respectively outline the amounts of the proposed CCCI-adjusted fees and charges, the minor updates to the implementation guidelines recommended to achieve the City’s development encouragement strategy, and the projects to be funded by said fees and charges; and WHEREAS, said Master Fee Schedule for Development Impact Fees and Capacity Charges, Council Policy No. CP-24-05, and the Capital Improvement Plan have been made available for public review with copies on file in the City Clerk/Board Secretary’s office and posted on the City/Board’s website; andWHEREAS, in accordance with the Mitigation Fee Act, notice of a public hearing to be held on December 17, 2024, was published in the Valley Wide Newspaper on December 6, 2024 with a second notice thereof published on December 13, 2024; and WHEREAS, the City Council, together with the District Board, held and conducted a public hearing on December 17, 2024, in accordance with the duly published public hearingnotice, to review and consider the adoption of the Master Fee Schedule for Development Impact Fees and Capacity Charges, Council Policy No. CP-24-05, and the Capital Improvement Plan attached hereto; and WHEREAS, by adopting this Resolution No. VWD 24-011, the District Board finds that: (1) the amount of Water System Capacity Charges does not exceed the estimated reasonable cost of the services and public improvements/facilities for which such Water System Capacity Charges are being imposed; (2) the allocation of those costs are fair or reasonable in relationship to the burdens on, or benefits that those who pay a Water System Capacity Charge will receive from such services and facilities; and (3) the public improvements/facilities are of proportional benefit to person or property being charged; and WHEREAS, adoption of those portions of the Master Fee Schedule for Water System Capacity Charges, Council Policy No. CP-24-05, and the Capital Improvement Plan relating thereto will establish the Water System Capacity Charges that may be imposed by development type under the various Fee categories. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE VICTORVILLE WATER DISTRICT DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The recitals set forth above are true and correct and are incorporated into this Resolution by reference, together with any definitions and findings set forth therein. SECTION 2. The District Board has reviewed and hereby approves and adopts the Water System Capacity Charges portion of the Master Fee Schedule for Development Impact Fees and Capacity Charges attached hereto as Exhibit A, Council Policy No. CP-24-05 attached hereto as Exhibt B, and the Water District related projects within the Capital Improvement Plan as listed in Exhibit C. Adoption of the Master Fee Schedule for Development Impact Fees and Capacity Charges will update Fees and Charges to be implemented in accordance with guidelines found in the City Council Policy No. CP-24-05, including without limitation the Annual Cost Adjustment to such fees and charges as set forth in Section III of said policy.SECTION 3. The District Board hereby reaffirms the Mitigation Fee Act findings previously made as set forth in Section 3 of Resolution No. VWD 22-005 and the recitals hereof with respect to the Water System Capacity Charges being adopted in the Master Fee Schedule attached hereto as Exhibit A as it relates to non-residential fees and year three of the originally adopted phased implementation of residential fees/charges.
SECTION 4. All resolutions or administrative actions by the District Board, or parts thereof that are inconsistent with any provision of this Resolution, including without limitation, VWD Resolution No. 22-007, are hereby superseded, but only to the extent of such inconsistency.SECTION 5. The District Board finds that the California Environmental Quality Act (CEQA) does not apply to the adoption of this Resolution, pursuant to Sections 15061 and 15273 of the State CEQA Guidelines because: (1) to the extent that any of the Water System Capacity Charges set forth in the attached Exhibit A are actually imposed and collected, such fees or charges will be for the purposes of obtaining funds for capital projects necessary to maintain the current levels of service within existing service areas to serve new development; and (2) to the extent that any of the Water System Capacity Charges set forth in the attached Exhibit A are actually imposed and collected and used to fund new facilities, the construction of those facilities will not take place until there has been CEQA review of the development projects which will pay the fees, and the construction of each public facility will be subject to CEQA review. Therefore, it can be seen with certainty that the adoption of this Resolution establishing these fees will not have a significant effect on the environment. SECTION 6. This Resolution shall take effect immediately upon its adoption. However, the updated Water System Capacity Charges in Exhibit A shall go into effect as of March 1, 2025, subject to the applicable provisions of City Council Policy No. CP-24-05 attached hereto as Exhibit B. SECTION 7. The District Secretary shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions of the District; and shall make a minute of passage and adoption thereof in the records of the proceedings of the District, in the minutes of the meeting at which this Resolution is passed and adopted.
Exhibit A Master Fee Schedule – Development Impact Fees
Exhibit BCity Council Policy No. CP-24-05
City of VictorvilleCouncil Policy SUBJECT: Policy No. CP-24-05 (Superseding Policy No. CP-23-02)Development Impact Fees and Capacity Charges Adopted: December 17, 2024 EffectiveDate:January 1, 2025I. Purpose The purpose of this policy is to establish guidelines for the implementation of Development Impact Fees (DIF) for Parks and Recreation, Libraries, Fire Protection, Police, Public Buildings, Road Improvements, Regional Drainage, as well as Capacity Charges for Sewer and Water (Capacity Charges) and the associated Administrative Fee as adopted by the City Council and Board of Directors for the Victorville Water District. This policy does not govern the collection of fees by the City on behalf of outside agencies, such as VVWRA or any of the local school districts. II. Implementation Timeline A. Grandfathering of Projects – Certain projects, subject to the terms and conditions outlined below, shall be exempt from new DIF and Capacity Charges. In these instances, projects shall only be subject to DIF and Capacity Charges in effect prior to January 1, 2023. The exemption shall expire for any projects that have not pulled building permits before January 1, 2025, at which point projects shall become subject to DIF and Capacity Charges in effect at that time.a. Single Family Residential Tracts – Projects for residential tracts within Victorville would be exempt from new DIF and Capacity Charges if they are significantly underway as of June 30, 2022; meaning the project has a final map submission to the City for plan check review, recorded Final Maps (including a recorded Dash Map within an approved, unexpired Tentative Tract Map) or is in the Final Map Approval Process.i. For this policy, the following definitions shall apply:1. Final Map Approval Process - having an approved, unexpired tentative map with an active improvement plan check being processed by the City as of June 30, 2022.2. Dash Map - a phased tract map with a dash between the tract number and phase number. b.Multi-family Developments – Projects that are fully entitled or have submitted a Complete Entitlement Application to the Planning Department prior to January 1, 2023, are exempt from new DIF and Capacity Charges.i. For this policy, the following definitions shall apply:1. Complete Entitlement Application - the submission of all the required application filing requirements to entitle a project that is deemed complete by City staff within 30 days of the submission. c. Non-Residential Developments – All non-residential projects (e.g. commercial and industrial) that have received project entitlements from the Planning Commission and have submitted construction plans to the Building Department for plan check prior to January 1, 2023. III. Annual Cost Adjustment Following the initial effective date, DIF and Capacity Charges shall be adjusted In December of each year by utilizing the California Construction Cost Index, published by the State Department of General Services (CCCI),1July over Julycomparison, with an effective date of March 1st. For Single Family Residential Tracts and Multi-Family Development projects subject to phased implementation, the annual cost adjustment shall be applied starting on March 1st of the first year after the final phase is implemented and shall be based on a single year adjustment (not a cumulative adjustment covering multiple years). IV. Fee Collection Except as may otherwise be provided in Government Code section 66007, the collection of DIF and Capacity Charges shall be required prior to, but not later than,the time of final inspection. If a developer is requesting full release of all utilitiesprior to final inspection, including gas and electric service, these fees may be required to be paid at that time. V. Determination of Applicable Fee Except for grandfathering of projects outlined in Section II, or as otherwise required by law, the applicable DIF and Capacity Charges will be determined based on the date of submittal of an application for a permit to the Building Department. The application must be for the specific building or improvement for which the fee would be applied. For example, within a tract of homes, the permit application would have to be for a specific home on a specific lot. Separate grading permits or permits for other types of improvements would not have the effect of establishing the DIF and Capacity Charges. This rate will remain the effective rate while the plan check for 1 The CCCI is based on Engineering News Record Building Cost Index data specific to California. that application remains active. If the plan check expires, the applicant will have to submit a new application and will be subject to any DIF and Capacity Charge updates that have occurred between the initial expired submittal and the new submittal. VI. Exemptions The following categories of projects shall be exempt from the requirement for the payment DIF and Capacity Charges. A. Old Town – Projects located within the Old Town Specific Plan geographical area.B. City-owned Property – Development of facilities on land owned by the City or any of its subsidiary agencies, provided it is developed for public use or benefitsthe health, safety and welfare of the community at large.C. Accessory Dwelling Units (ADUs) less than 750 sq. ft.VII. Credits Toward Applicable FeesA developer may be eligible to receive credits for certain public improvements constructed by the developer to offset DIF and Capacity Charges. Criteria establishing the eligibility for fee credits for a category of public improvements are specific to that fee category as described below. A. Park Land and Park Improvements 1. Land dedicated to the City by a developer, for the use of a planned City park, may be eligible for a DIF credit if it is determined that the land will support the development of a park that will benefit the community in a manner consistent with the City’s Parks and Recreation Master Plan. An appraisal report prepared by a qualified appraiser shall be submitted to the City for review. The dollar amount of the credit will be based on an appraised value found to be acceptable to the City. 2. Park improvements constructed by a developer for the use of a planned City park, may be eligible for a DIF credit if it is determined that the parkimprovements will benefit the community in a manner consistent with the City’s Parks and Recreation Master Plan. B. Road Improvements 1. The maximum Road DIF credit available is 67 percent of the Road DIF collected for the development, which is the “Local Road Improvements” portion of the cost estimate in the most recent DIF Study, or the cost of the eligible road improvements, whichever is less. The remaining 33 percent of the Road DIF paid is reserved for the SBCTA Nexus Study Road Improvements portion of the most recent DIF Study. The percentages may be adjusted based on future DIF study updates.2. The project must be on the most recently adopted DIF Road Project list. 3. Only the center portion of a road is eligible for credit, because only the center portion was included in the cost estimate for the Road project list. The eligible center width is as follows by street classification: a. Arterial 26 feet b. Major Arterial 38 feet c. Super Arterial 60 feet 4. Utility relocation costs are not eligible. Culvert crossings for drainage are eligible if they are required as part of the approved road improvements, but longitudinal storm drain facilities are not eligible. 5. Projects on the State Highways System are not eligible for Road DIF credits because arterial road projects on the Road Project list are only City roads and interchanges on I-15 will not be constructed by a developer. 6. Road portions outside of the City Limits (an adjacent City or County unincorporated area) are not eligible for Road DIF credits. C. Drainage Improvements 1. The project must be on the most recently adopted DIF Regional Drainage Facilities Project list. 2. Only regional facilities are eligible, which in general, are the larger facilities identified as Regional in a Master Plan of Drainage prepared by the San Bernardino County Flood Control District. Typically, these facilities convey at least 750 cubic feet per second for the peak 100-year storm frequency. 3. For the Southern California Logistics Airport (SCLA), eligible facilities are also identified in the DIF Regional Drainage Facilities Project list and consistent with the facilities identified in the most recent the SCLA Specific Plan update. D. Sewer Collection System Improvements 1. The project must be identified in the latest update of the Sewer Master Plan or a separate sewer study approved by the Engineering Department. 2. The project must increase the capacity of the sewer system.
3. Projects can include replacing an existing sewer main with a main of increased diameter or constructing a new sewer main. Sewer mains must be larger than 8 inches in diameter.E. Water System Improvements 1. The project must be identified in the latest update of the Water Master Plan or a separate water study approved by the Engineering Department.2. The project must increase the capacity of the water system. 3. Projects can include replacing an existing water main with a main of increased diameter or constructing a new sewer main. Water mains must be larger than 8 inches in diameter. F. Demolished Buildings Credits for demolished buildings or removed plumbing fixtures may be assigned to new permits on the same property on a like for like basis at the discretion of the Building Official. To qualify for these credits, detailed demolition plans must be submitted with plans for the new development indicating which structures or plumbing fixtures are being removed as part of the project. G. General Requirements for Credits If a project is determined to be eligible for DIF and/or Capacity Charge credits, the following general requirements shall apply: 1. A letter must be submitted to the City requesting the credit. 2. City staff will determine the eligible credit amount. 3. If the cost of land dedicated or improvements constructed exceeds the amount of DIF and/or Capacity Charge required to be paid by the developer, the developer may be eligible for reimbursement. The reimbursement amount is subject to available City DIF and Capacity Charge funds and must be specified in an agreement. 4. The City’s standard Fee Credit Agreement must be used. The standard agreement has a term of five years, after which the agreement becomes void. City Council must approve the agreement. 5. DIF/Capacity Charge credits cannot be transferred to a different development project. The agreement is project specific.
6. Assignment of Road DIF/Capacity Charge credits to another party requires another agreement for the transfer of the credits, and approval by the City Council. The DIF/Capacity Charge credits remain with the land. 7. Competitive bidding procedures specified in the City’s standard Fee Credit Agreement must be used. 8. The improvements shall be installed by a contractor appropriately licensed in the State of California for the type of improvements constructed.9. State prevailing wage rates shall be paid to the contractors that install the improvements. 10. Improvements shall be designed to City standards in accordance with approved plans by the City Engineer.11. After construction of the project, the following information is required: a. Supporting documentation for the actual cost of the work. b. General contractor and sub-contractor names and license numbers.c. Signed contracts and lien releases for all contractors and subcontractors associated with the work. d. Certified payroll substantiating that State prevailing wages were paid. 12. The maximum amount of DIF/Capacity Charge credit cannot exceed the actual cost of the eligible improvements unless the developer is eligible for reimbursement in accordance with an approved agreement.13. The credit is subtracted from the DIF/Capacity Charge required to be paid by the developer. The Building Division administers the DIF/Capacity Charge credits after the agreement is approved.
Exhibit CCapital Improvement Plan
Development Impact Fee & Capacity Fee Capital Improvement Plan FY 202 SUMMARY The Mitigation Fee Act (Gov. Code, §66000 – 66025) outlines requirements for establishing, increasing and imposing fees as a condition of development. A “nexus study” must be completed to demonstrate a “reasonable relationship” between the fees, the public facilities to be funded by the fees and the development projects upon which the fees are assessed.In 2021, the California Legislature passed Assembly Bill (AB) 602 and the Governor signed it into law. AB 602 created new statewide requirements for Development Impact Fees. Among other things, AB 602 added the requirement that large jurisdictions (counties with populations of at least 250,000 or any city located therein, regardless of population) adopt a capital improvement plan as part of their nexus study.The following sections constitute the required capital improvement plan, outlining projects for public facilities to be funded in whole or in part by development impact fees and capacity fees assessed for development projects in Victorville. In the case of Water System Improvement, Sewer Capacity and Regional Drainage facilities, project availability will vary and align with the time the associated project area is developed. For all other projects, availability is described within the capital improvement plan as follows:Description Timeframe to Complete Short-Term Estimated within 1-3 yearsMid-Term Estimated within 4-7 yearsLong-Term Estimated withing 8-10 years