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HomeMy WebLinkAbout03-063 CC ResolutionRESOLUTION NO. 03-63 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ESTABLISHING AND IMPOSING NEW DEVELOPMENT IMPACT FEES AND INCREASING CURRENT DEVELOPMENT IMPACT FEES EFFECTIVE JULY 26, 2003 PURSUANT TO CHAPTER 15.06 OF THE TEMECULA MUNICIPAL CODE AND RESOLUTION NOS. 97-94 AND 98-30. WHEREAS, on May 27, 1997, the City Council adopted Ordinance No. 97-09 establishing Chapter 15.06 of the Temecula Municipal Code, Public Facilities Development Impact Fee ("DIF"), which was modified by Ordinance No. 97-14 on August 16, 1997, and was further modified by Ordinance No. 98-05 on April 14, 1998; and WHEREAS, on May 27, 1997, the City Council adopted Resolution No. 97-45 which established the Development Impact Fees. This Resolution was restated and modified by Resolution No. 98-30 on April 14, 1998; and WHEREAS, the City Council adopted residential DIF as recommended in a Development Impact Fee Study conducted by David M. Griffith and Associates ("DMG"), and adopted non-residential DIF at 36% of the amount recommended by DMG; and WHEREAS, Resolution 98-30 provides for an automatic annual adjustment of both residential and non-residential DIF based on the percentage increase or decrease, if any, of the Engineering News Record Building Cost Index ("BCI") for the Los Angeles Metropolitan Area BCl for the bNelve month period prior to May 1 of the year in which the change will be effective; and WHEREAS, Exhibit B to Resolution 98-30 contains projected fees for seven (7) years with no escalation applied to residential DIF and an escalation of 10% per year applied to non- residential DIF until fees reach 60% of the recommended fee; and WHEREAS, Development Impact Fees are typically analyzed every three to five years to monetarily quantify the impacts of development on certain capital facilities; and WHEREAS, in August 2002, the City contracted with the firm of Maximus (formerly DMG) to prepare a report providing recalculated development impact fees based on updated information on existing and future development and facilities. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Temecula as follows: Section 1. The City Council of the City of Temecula does hereby find, determine and declare as follows: A. As detailed in Exhibits A, residential Development Impact Fees shall be adopted as recommended in the Impact Fee Study Report completed by Maximus dated March 10, 2003. R:/Resos 2003/Resos 03-63 1 B. As detailed in Exhibit B, non-residential Development Impact Fees shall be phased in over a three-year period. The non-residential fees would not be increased (except for the annual BCI adjustment) until July 1, 2004 and would phase in to 100% of the recommended fees beginning July 1, 2008. C. According to Resolution 98-30, both residential and non-residential development impact fees will be subject to an automatic annual adjustment based on the percentage increase or decrease, if any, of the Engineering News Record Building Cost Index ("BCI") for the Los Angeles Metropolitan Area BCI for the twelve month period prior to May 1 of the year in which the change will be effective. These annual BCI adjustments would continue during the phase-in of non-residential fees. Section 2. These development impact fees will be effective July 26, 2003. PASSED, APPROVED and ADOPTED by the City Council of the City of Temecula at a regular meeting held on the 27th day of May, 2003. ATTEST: rey E. Stone, Mayor R:/Resos 2003/Resos 03-63 2 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, City Clerk of the City of Temecula, California, do hereby certify that Resolution No. 03-63 was duly and regularly adopted by the City Council of the City of Temecula at a regular meet ng thereof held on the 27th day of May, 2003, by the following vote: AYES: 4 COUNCILMEMBERS: Comerchero, Naggar, Roberts, Stone NOES: 0 COUNClLMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 1 COUNCILMEMBERS: Pratt City Clerk R:/Resos 2003/Resos 03-63 3 ATTACHMENT A CITY OF TEMECULA DEVELOPMENT IMPAGT FEES COMPARISON: CURRENT FEES VS. STUDY MAXIMUM ALLOWABLE FEES MAX FEE CURRENT CURRENT ALLOWABLE % FEES % COMPONENT TYPE OF LAND USE FEES BY STUDY INCREASE IF ~* 100% INCREASE ~tteet System Residential Attached $556.46 $958.9~ 72.3% $556.4( 72.3*/ Improvements · Residential Detached 793.85 1,369,8! 72,6'~ 793.8,~ 72.6~ Office 0.97 3.14 222.8~ 2.0~ 54.9~ Retail Commerctar 3.01 5.2~ 74.2~ 6.2i -16.4~/ Service Commercial 1.50 3.6; 144.1~ 3.1.~ 17.2~A Business Park~ndustrial 0.71 1.8; 164.4~ 1.4~ 26.9~ r're, fflc Signals and Residential Attached $83.85 $135,7~ 61,9~ $83.8~ 61.9~ Traffic Dentrol Residential Detached 118.69 193.91 63.4~/ 118.6.c 63.4~ Systems '* Office 0.15 0,~ 200.0°A 0,31 44.0~ Retail Cornmercta~ 0.46 0,74 61,8~ 0,gE -22.3S; Service Commercial 0.23 0.5; - 127,2~ 0.4~ 9,0~ Eusir~ss PanV,/Indusnt al 0.11 0.27 145.2°,~ 0.23 17.7~ ~rporate Facilities Residential Attached $128.49 $199.2~ 55.1 · $128.4~ 55.1% Residential Detached 241,75 371.6~ 53.7~ 241.7 53.7% Office 0.05 0.1E 195.3~ 0.11 41.7% Retail Commercial 0.13 0.3~ 185.8~ 0.26 37.2% Service Commercial 0.07 0.21 204.0~,{ 0.14 45.9% Business Part(/Indusntal 0,04 0.13 204.6% 0,0g 46.2% Police Facilities Residential Attached $0.00 $350.2~ Ne'~ $0.00 Residential Detached 0.00 197.97 Ne~ 0.00 Office 0.00 0.0E Ne~ 0.00 Retail Commercia~ 0.00 0.2(] Ne~ 0.00 Service Commercial 0.00 0.1ti Ne~ 0.00 Business Parldlndus~st 0.00 0,05 Ne~ 0.00 Fire Protection Residential Attached $45.74 $218.18 377,0% $45.74 377.0% Facilities Residential Detached 59.89 470.17 685.0% 59.89 685.0% Office 0.13 0.09 -32.4,% 0.28 -67.5% Retati Commercial 0.02 0.13 433.1% 0.04 225.0% Service Commemlal 0,02 0.13 610.8% 0.04 241.2% Business Park/lndustrist 0.02 0.09 453,0% 0.04 119.5% Park and RecreaSon Residen5a~ Attached $1.316.56 $1,619.77 23.0% $1.316.56 23.0% P:'~'inance\vo ndehp~St afl Report - New D]F Atlachnmnt A~xls 2:39 PM 05~21/2003 A'rrACHMENT B CITY OF TEMECULA DEVELOPMENT IMPACT FEES 3-YEAR PHASE IN SCHEDULE (WITHOUT ANNUAL BCI ADJUSTMENTS) JULY 1, JULY 1, JULY 1, JULY 1, CURRENT 2003 2004 2~)5 2006 COMPONENT TYPE OF LAND USE FEES FEES *** FEE9 *** FEES *. FEES StreetS)stem ResidentiaiAttached $ 556.46 $ 958.92 $ 958.92 $ 958.92 $ 958.92 Improvements * ReskJan0al Detached 793.85 1,369.89 1,369.89 t,369.89 1,369.89 Office 0.97 0.97 1.69 2.41 3.14 Ret ail Commerclai 3.01 3.01 3.75 4.49 5.24 Service Commeretai 1.50 1.50 2.22 2.94 3.67 ~uainess Perk/Industrial 0.71 0.71 t .10 1.49 1.88 TrafflcSIgnaisand Res[den6alAttacndd $ 83.85 $ 135.74 $ 135.74 $ 135.74 $ 135.74 Traffic Control Reslden6al Detached 118.69 193.91 193.91 193.91 193.91 Systems" Office 0.15 0.15 0.25 0.35 0.45 Retail Conlmercial 0.48 0.46 0.55 0.64 0.74 Service Commercial 0.23 0.23 0.32 0.42, 0.52 Business Parldlnduetr~l 0.11 0.11 0.16 0.21 ! 0.27 CorporataFacilities ResidentialAttache(] $ 128.4g $ 199.28 $ 199.28 $ 199.28 $ 199.28 Residential Detached 241.75 371.66 371.66 371.6, 371.66 Office 0.05 0.05 0.08 0.11 0.1S Retail Commercial 0.13 0.13 0.20 0.28 0.36 Sen. ice Commerciai 0.07 0.07 0.11 0.16 0.21 Business Paddlnduetrlal 0,04 0.04 0.07 0.10 0.13 Po~iceFacilifies ReaidentialAttached $ $ 350.25 $ 350.25 $ 350.25 $ 350.25 ResMensai Detached 197.g7 197.97 197.97 197.97 Office 0.02 0.04 0.06 Retail Commerclai 0,07 0.13 0.20 Office CiO/of Temecula lmpa ct Study Report March 10, 2003 Final Draft MAXIMUS, Inc. Cost Services DMslon 43Z0 Auburn Boulevard, Suite 2000 Sacramento, CA 95841 916.485.8102 916~185.0111 (Fax) www. maxlmus.com Oty o£ Temecula - Impact Fee Study TabIe o£ Contents TABLE OF CONTENTS Executive Summary Organization of the Report Development Data Impact Fee Analysis Implementation Summary of Impact Fees Chapter I o Introduction Legal Framework Impact Fee Calculation Methodology Facilities Addressed in This Study Chapter 2 - Development Data Background an.d Setting Study Area and Time Frame Development Types Units of Development and Conversion Factors Demand Variables and Impact Factors Development Data Chapter $- Parks and Recreation Fadlitles Service Area Methodology Demand Variable Level of Service Per-Capita Cost Impact Fee Calculation Projected Revenue S-1 S~I S-2 S-3 S-4 1-1 1-5 1-7 2-1 2-2 2-2 2-2 2-3 2-6 3-1 3-1 3-1 3-1 3-3 3-5 3-5 Chapter 4 - Open Space and Trail Development Service Area 4-1 Methodology 4-1 Demand Variable 4-1 Level of Service 4-2 Per-Capita Cost 4-3 Impact Fee Calculation 4-5 Projected Revenue 4-5 March 10, 2003 34AXIIffUS Page I City o£ Teraecula - Impact Fee Study Table o£ Contents TABLE OF CONTENTS (Continued) Chapter 5- Streets and Tra~c Control Service Area Methodology Demand Variable Level of Service Facility Needs Average Cost per Peak Hour Trip Impact Fee Calculation Projected Revenue 5-1 5-1 5-1 5-2 5-2 5-4 5-4 5-6 Chapter 6- Libraries Service Area Methodology Demand Variable Level of Service Per Capita Cost Impact Fee Calculation Projected Revenue 6-1 6-1 6-1 6-1 6-2 6-3 6-3 Chapter 7-Corporate lad/ides Service Area Methodology Demand Variable Level of Service Impact Fee Calculation Projected Revenue %1 7-1 7-1 7-2 74 7-6 Chapter 8- Fire Fadlities and Equipment Service Area Methodology Demand Variable Level of Service Facility and Equipment Needs Cost per Acre Impact Fee Calculation Projected Revenue 8-1 8-2 8-2 8-2 8-2 8-4 8-5 8-6 ~ 10, 2003 AIAXIA4U$ Page 11 CIO~ of Temecula - Imt~¢t Fee Study Table o£ Contents TABLE OF CONTENTS (Continued) Chapter 9- Police Fadlitle$ ea~d Vehldes Service Area Methodology Demand Variable Level of Service Cost per Call for Service Police Vehicles Impact Fee Calculation Projected Revenue 9-1 9-1 9-1 9-1 Chapter 10 - Implementation Adoption Administration Training and Public Information Recovery of Study Cost Appendix A - Street Improvement Matrix 9-2 9-2 9-3 9-4 10-1 10-2 10-7 10-7 Matr_~ 10, 200S IPlAXIMUS Pa~e 111 Cl{y of Temecula - Impact Fee Study ,D~ecutlve Summary EX£CI. IFIVE SUA4A4AR Y The City of Temecula has retained MAXlMUS to prepare this study to analyze the impacts of development on certain capital facilities, and to calculate development impact fees based on that analysis. This report documents the data, methodology, and results of that impact fee study. The methods used to calculate impact fees in this study are intended to satisfy all legal requirements governing such fees, includ- ing provisions of the U. S. Constitution, the California Constitution, and the Cali- fornia Mitigation Fee Act (Government Code Sections 66000 et seq.) ORGANIZATION OF THE REPORT Chapter 1 of this report provides an overview of impact fees. It discusses legal re- quirements for establishing and imposing such fees, as well as methods used in this study to calculate the fees. Chapter 2 contains information on existing and planned development in Temecula, and organizes that data in a form that can be used in the impact fee analysis. Only the area within the existing City boundaries was considered in this study. Chapters 3 through 9 analyze the impacts of devel- opment on specific types of facilities as follows: Ch. 3. Parks and Recreation Facilities Ch. 7. Corporate Facilities Ch. 4. Open Space and Trails Ch. 8. Fire Protection Facilities Ch. 5. Street Improvements/Traffic Signals Ch. 9. Police Facilities Ch. 6. Libraries Each of the chapters listed above identifies facilities eligible for impact fee funding and calculates the maximum impact fee that can be justified for each type of facility based on the information used in the study. Chapter 10 discusses implementation of the impact fee program, including procedures and legal requirements for imple- menting an impact fee program under California law. DE VEL OPMENT DA TA Forecasts of future development used in this study are intended to represent all ad- ditional development within the existing City limits from January 2003 to buildout of the that area under the current General Plan. It is not necessary for purposes of this study to forecast the timing of development or when buildout will occur. In- formation on existing and potential development used in this study was provided by the Community Development Department and is based on the General Plan. Data on population and demographics were taken from the 2000 Census and Cali- fornia Depmtment of Finance Population estimates. A4a~h 10, 2003 A4AXI~II.I$ P4ge S-I 00; o£Temecu/a - ~npact Fee $~ud.y Executive Summao/ As shown in Chapter 2 of this report, land planned for development in the study area would ultimately support a 53% increase in population to about 116,000, and a 60% increase in total developed acreage. Other measures of growth, such as traf- fic volumes and police calls generally are projected to increase between 55% and 650/o through buildout. This report addresses facilities needed to meet the service needs of that future development. IMPA CT FEE ANAL YSI$ Each type of facility addressed in this report is analyzed individually. In each case, the relationship between development and the need for additional facilities is quan- tified in a way that allows impact fees to be calculated for various categories of de- velopment. For each type of facility, a specific, measurable attribute of develop- ment is used to represent the demand for additional capital facilities. For example, in the case of street improvements and traffic signals, the number of additional peak hour vehicle trips generated by new development is used to measure the ira- pact of that development. Recommended impact fees for all types of facilities are summarized at the end of this Executive Summary. The impact fees calculated in this report are based on capital costs only. The following paragraphs briefly discuss factors considered in the analysis of each type of facility Parks and Recreation Facilities. Chapter 3 of this report calculates impact fees for park improvements and recreation facilities. The City also requires park land dedi- cation or payment of in-lieu fees, but those fees are not addressed in this study. The impact fees for park improvements are based on the cost of improvements needed to maintain the City's existing ratio of improved park acreage to popula- tion. The impact fees for recreation facilities are based on the existing ratio of fa- cility replacement cost to population. Because these fees are population-driven, they apply only to residential development. Open Space and Trails. Chapter 4 of this report calculate~ impact fees for open space land acquisition and trail development. The impact fees for open space land are based on the cost of land needed to maintain the City's existing ratio of open space acreage to population. The impact fees for trail development are based on the existing ratio of miles of developed trails to population. Because these fees are population-driven, they apply only to residential development. Street and Traffic Control Impact Fees. Chapter 5 of this report calculates impact fees for street improvements and traffic signals based on a list of projects needed to serve future development. The Public Works Department has identified the share of project that is attributable to future development. The fees for both street im- provements and traffic signals are based on the total cost of such improvements and ti'latch I0, 2003 flfA)Cl~gl$ Page .~2 O{y of Temecula - Impact Fee Study Execu#ve Summao/ number of peak hour vehicle trips generated by future development. None of the costs used as the basis for impact fees in this study duplicate costs covered by the regional TUMF program. Libraries. Chapter 6 of this report calculates impact fees for libraries. The impact fees for library facilities and materials are based on the ratio of existing facilities and materials to population. Existing facilities in this study include furore facilities for which funding has been committed. Because these fees are population-driven, they apply only to residential development. Corporate Facilities. Chapter 7 of this report addresses impact fees for City administrative and maintenance facilities. The analysis assumes that the existing City Hall and maintenance facility are at capacity. The need for future City Hall space is assumed to increase in proportion to a weighted acreage index used to rep- resent the demand for services housed in City Hall. The need for maintenance fa- cilities is assumed to increase in proportion to increases in traffic (street mainte- nance) and population (park maintenance). Fire Facilities and Equipment. Chapter 8 of this report addresses impact fees for fire protection facilities and apparatus. The method used to calculate these fees is different from the methods used for other types of fees in this study. Because most fire stations serve both existing and future development, and because all develop- ment in the City is served by the entire system of fire protection facilities, this study uses a "buy-in" approach to calculate fire impact fees. To calculate the buy-in fees, costs for all existing and planned facilities and apparatus are allocated to all exist- ing and planned development based on developed acreage. The result is an average cost per developed acre. The impact fees assessed to future development depend on the number of developed acres in a project. Police Facilities and Equipment. Chapter 9 addresses impact fees for police facili- ties and equipment. This study assumes that Police Department space needed to serve future development in Temecula will be provided by constructing a new sub- station in the City. The estimated cost of that facility is allocated to future devel- opment based on the number of calls for service per year generated by various types of development. Projections of future equipment (vehicle) needs is based on the current relationship between calls for service and the replacement cost of exist- ing vehicles. IA4PL EA/IENTA TION Implementation of an impact fee program raises both practical and policy issues. Chapter 10 of this report points out many practical and procedural issues related to the implementation of the City's impact fee program, and outlines administrative procedures mandated by the Government Code with respect to impact fees. Topics klamh 10, 2003 NL~XIRIU$ P~ge City o£1'emecu/a - ImRact Fee Study Executive Summary covered in that chapter include adoption and collection of fees, accountability for fee revenues, expenditure time limits, reporting and refunding requirements, updat- ing of fees, and staff training. From the point of view of the City Council, important policy choices must be made regarding the impact fees. The development impact fees calculated in this report are intended to represent the maximum impact fee amount justified by this analy- sis. Of course, the City Council may choose to adopt fees lower than those calcu- lated in the study. In that event, it is important that the Council identify which fa- cilities are to be funded by the reduced impact fees, and the share of total cost to be recovered through the fees. It should also be emphasized that all costs used in this report are in current dollars. To the extent that construction costs for capital improvements escalate over time, the impact fees should be adjusted to keep pace with that inflation. We recom- mend annual adjustments based on changes in the Engineering News Record Build- ing Cost Index. If the fees are not escalated, the City could experience a significant shortfall in anticipated funding over several years. SUMMARY OF IA/IPA CT FEES Table $.1 summarizes the impact fees calculated in later chapters of this report. Fees shown in Table S.1 are for one unit of development, by facility type and de- velopment type, and are rounded to the nearest dollar. Fees for non-residential development are shown on a per-acre basis. Table $.2, on the next page, also shows the impact fees calculated in this report, with non-residential fees converted to a square foot basis. Table 5.1 Summary of Impact Fee* Calculated in this Report (Non-Residential Fees Shown on a per-Acre Ba~i~) Devdopment Der Park~Rec Open 5p/ $~eeu/ Corp Fire Polic~ T},pe Unit~I Facilifie~ Traih Si~nah Libraries F~lifi~ F,*,411,1.. F~eillri~ Total Residential, Detached DU $ 2,2615 659 $ 1,$64 $ 602 $ 372 $ 470 $ 198 $ 6.126 Residential, Attached DU $ 1,620' $ 472 $ 1,095 5 42}1 $ 199 5 218 $ 350 5 4386 Professional Office Acre $ 62,552 $ 2,690 $ 1,652 $ 1,066 $67,960 BusinessPark/Lightlnd Acre $37,531 $ 2,202 5 1,652 5 838 $42,223 Gommerdal, Retail Acre $78,190 $ 4,717 $ 1,6.$2 $ 2,589 $87,148 Gommerclal, Highway Acre $78,190 5 4.717 $ 1,6.$2 5 2,$89 $87,148 Gommerdal. Service Acre 554,733 $ 2,752 $ 1,652 $ 1,294 560,431 PublledIns6tutional Acre $151638 $ 655 5 11652[ $ 11523 $197467 Development Unks-DU = dwelling unit ~ 10, 200.,= A4AX/A4'~ P~'e S-4t ~ty ~£ Tetne~ula - lrnpa~ Fee Study ,~ve~u#ve Summary Table 5.2 Summary of Impact Fees Calculated in this Report (Non-Residential Fees Converted to Square Foot Basis) Development Dev Parks/Rec Open Sp/ Streets/ Corp Fire Police Type Units~ Facilities Trails $isnals Libraries Facilities Facilities F~;nri,, Total Residential, Detached DU $ 2,261 5 659 S 1,564 $ 602 $ 372 $ 470 $ 198 $ 6,126 Residential, Attached DU $ 1,620 $ 472 $ 1,095 $ 431 $ 199 $ 218 $ 350 $ 4,386 ProfessionalOffice Sq. Ft. $ 3.59 $ O. 15 $ 0.09 $ 0.06 $ 3.90 BusinessPark/Lightlnd Sq. Ft. $ 2.15 $ 0.13 $ 0.09 $ 0,05 $ 2.42 Commercial, Retail Sq. Ft. $ 5.98 S 0.36 S 0.13 S 0.20 S 6.67 Commercial, Highway Sq. Ft. $ 5.98 $ 0.36 $ 0.13 $ 0.20 $ 6.67 Commarcial, Sarvice Sq. Ft. $ 4.19 $ 0.21 $ 0.13 $ 0.10 $ 4.62 Public/Institutional Sq. Ft. $ 1.44 $ 0.06 $ 0.15 $ 0.14 $ 1.79 ~ Developmem Units-DU -- dwelling unit 2003 ?dAfflA4U$ ?~e 5-$ City of Temecula - Impact Fee Study Introduction CHAPTER I INTRODUCTION The City of Temecula has retained MAXIMUS to prepare this study to analyze the impacts of development on certain of the City's capital facilities and to calculate development impact fees based on that analysis. This report documents the data, methodology, and results of the impact fee study. The methods used to calculate impact fees in this study are intended to satisfy all legal requirements governing such fees, including provisions of the U. S. Constitution, the California Constitu- tion, and the California Mitigation Fee Act (Government Code Sections 66000 et seq.). Impact fees calculated in this report are intended to replace the City's exist- ing impact fees. LEGAL FRAMEWORK U. $. Constitution. Like all land use regulations, development exactions, including impact fees, are subject to the Fifth Amendment prohibition on taking of private property for public use without just compensation. Both state and federal courts have recognized the imposition of impact fees on development as a legitimate form of land use regulation, provided the fees meet standards intended to protect against regulatory takings. To comply with the Fifth Amendment, development regulations must be shown to substantially advance a legitimate governmental interest. In the case of impact fees, that interest is in the protection of public health, safety, and welfare by ensuring that development is not detrimental to the quality of essential public services. The U. S. Supreme Court has found that a government agency imposing exactions on development must demonstrate an "essential nexus" between the exaction and the interest being protected (See Nollan v. Cali[ornia Coastal Commission, 1987). In a more recent case (Do/an v. City o[Tigard, 1994), the Court made clear that an. agency also must show that an exaction is "roughly proportional" to the burden cre- ated by development. Do/an is less significant for impact fees than for some other types of exactions (e.g. mandatory dedication of land) because proportionality is inherent in the proper calculation of impact fees. In addition, the Do/an decision appeared to set a higher standard of review for mandatory dedications of land than for monetary exactions. California Constitution. The California Constitution grants broad police power to local governments, including the authority to regulate land use and development. That police power is the source of authority for imposing impact fees on develop- ment to pay for infrastructure and capital facilities. Some impact fees have been A4~c.b I0, 2003 A,IA,tTA,IU$ P,~ge I-I CRy of Temecula - Impact Fee Study Introduction challenged on grounds that they are special taxes imposed without voter approval in violation of Article XIIIA. That objection would be valid only if fees exceeded the cost of providing capital facilities needed to serve new development. If that were the case, then the fees would also run afoul of the U. $. Constitution and the Mitigation Fee Act. Articles XIIIC and XIIID, added by Proposition 218 in 1996, require voter approval for some "property-related fees," but exempt "the imposi- tion of fees or charges as a condition of property development." · The Mitigation Fee Act. California's impact fee statute originated in Assembly Bill 1600 during the 1987 session of the Legislature, and took effect in January, 1989. AB 1600 added several sections to the Government Code, beginning with Section 66000. Since that time the impact fee statute has been amended from time to time, and in 1997 was officially titled the "Mitigation Fee Act." Unless otherwise noted, code sections referenced in this report are from the Government Code. The Act does not limit the types of capital improvements for which impact fees may be charged. It defines public facilities very broadly to include "public improve- ments, public services and community amenities." Although the issue is not specifi- cally addressed in the Mitigation Fee Act, other provisions of the Government Code (see Section 65913.8) prohibit the use of impact fees for maintenance or op- erating costs. Consequently, the fees calculated in this report are based on capital costs only. The Mitigation Fee Act does not use the term "mitigation fee" except in its recently added official title. Nor does it use the more common term "impact fee." The Act simply uses the word "fee," which is defined as "a monetary exaction, other than a tax or special assessment, ... that is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project .... " To avoid confusion with other types of fees, this report uses the widely-accepted term "impact fee," which should be understood to mean "fee' as defined in the Mitigation Fee Act. The Mitigation Fee Act contains requirements for establishing, increasing and im- posing impact fees. They are summarized below. It also contains provisions that govern the collection and expenditure of fees, and require annual reports and peri- odic re-evaluation of impact fee programs. Those administrative requirements are discussed in the Implementation Chapter of this report. Certain fees or charges re- lated to development are exempted from the requirements of the Mitigation Fee Act. Among them are fees in lieu of park land dedication as authorized by the Quimby Act (Section 66477), fees collected pursuant to a reimbursement agreement or developer agreement, and fees for processing development applications. ~4qo2'cfi 10, 2003 iI'IA2Ei~Us Pa.~e 1-2 Cl~y of Temecula - Impact Fee Study Introduc#on Required Findings. Section 66001 requires that an agency establishing, increasing or imposing impact fees, must make findings to: 1. Identify the purpose of the fee; 2. Identify the use of the fee; and, 3. Determine that there is a reasonable relationship between: a. The use of the fee and the development type on which it is imposed; b. The need for the fadlity and the type of development on which the fee is imposed; and c. The amount of the fee and the facility cost attributable to the devel- opment project. (Applies only upon imposition of fees.) Each of those requirements is discussed in more detail below. Identifying the Purpose of the Fees. The broad purpose of impact fees is to protect the public health, safety and general welfare by providing for adequate public facili- ties. The specific purpose of the fees calculated in this study is to fund the construc- tion of certain capital improvements identified in this report. Those improvements are needed to mitigate the impacts of expected development in the City, and thereby prevent deterioration in public services that would result from additional development if impact fee revenues were not available to fund such improvements. Findings with respect to the purpose of a fee should state the purpose of the fees as financing development-related public facilities in a broad category, such as street improvements or water supply system improvements. Identifying tbe Use of the Fees. According to Section 66001, if a fee is used to fi- nance public facilities, those facilities must be identified. A capital improvement plan may be used for that purpose, but is not mandatory if the facilities are identi- fied in the General Plan, a Specific Plan, or in other public documents. If a capital improvement plan is used to identify the use of the fees, it must be updated annu- ally by resolution of the governing body at a noticed public hearing. Impact fees calculated in this study are based on specific capital facilities identified elsewhere in this report, which is intended to serve as the public document identifying the use of the fees. Reasonable Relationship Requirement. As discussed above, Section 66001 requires that, for' fees subject to its provisions, a "reasonable relationship" must be demon- strated between: 1. the use of the fee and the type of deVelopment on which it is imposed; March I0, 2003 A~d~14U$ ' Page 1-3 City o£ Femecula - Impact Fee Study Introclucdon 2. the need for a public facility and the type of development on which a fee is imposed; and, 3. the amount of the fee and the facility cost attributable to the develop- ment on which the fee is imposed. These three reasonable relationship requirements as defined in the statute parallel "nexus" requirements enunciated by various courts. Although the term "dual ra- tional nexus" is often used to characterize the standard used by courts in evaluating exactions and impact fees under the U. S. Constitution, we prefer a formulation that recognizes three elements: "impact or need" '~enefit," and "proportionality." The dual rational nexus test explicitly addresses only the first two, although pro- portionality is reasonably implied, and was specifically addressed by the U.S. Su- preme Court in the Dolan case. The reasonable relationship language of the statute is considered less strict than the rational nexus standard used by the courts. Of course, the higher standard con- trols. We will use the nexus terminology in this report for two reasons: because it is more concise and descriptive, and also to signify that the methods used to calcu- late impact fees in this study are intended to satisfy the more demanding constitu- tional standard. Individual elements of the nexus standard are discussed further in the following paragraphs. Demonstrating an Impact. All new development in a community creates additional demands on some, or all, public facilities provided by local government. If the supply of facilities is not increased to satisfy that additional demand, the quality or availability of public services for the entire community will deteriorate. Impact fees may be used to recover the cost of development-related facilities, but only to the extent that the need for facilities is a consequence of development that is subject to the fees. The ]qollan decision reinforced the principle that development exactions may be used only to mitigate conditions created by the developments upon which they are imposed. That principle clearly applies to impact fees. In this study, the impact of development on improvement needs is analyzed in terms of quantifiable relationships between various types of development and the demand for specific facilities, based on applicable level-of-service standards. This report contains all information needed to demonstrate this elemen~ of the nexus. Demonstrating a Benefit. A sufficient benefit relationship requires that impact fee revenues be segregated from other funds and expended only on the facilities for which the fees were charged. Fees must be expended in a timely manner and the facilities funded by the fees must serve the development paying the fees. Nothing in the U.S. Constitution or California law requires that facilities paid for with im- pact fee revenues be available exclusively to developments paying the fees. Merctt I0, 2003 t~aA4ll$. Pa~e 1-4 City of remecula - Impact Fee Study Introduction Procedures for earmarking and expenditure of fee revenues are mandated by the Mitigation Fees Act, as are procedures to ensure that the fees are expended expedi- tiously or refunded. All of those requirements are intended to ensure that devel- opments benefit from the impact fees they are required to pay. Thus, an adequate showing of benefit must address procedural as well as substantive issues. Demonstrating Proportionality. The requirement that exactions be proportional to the impacts of development was clearly stated by the U.S. Supreme Court in the Dolan case and is logically necessary to establish a proper nexus. Proportionality is established through the procedures used to identify development-related facility costs, and in the methods used to calculate impact fees for various types of facilities and categories of development. In this study, the demand for facilities is measured in terms of relevant and measurable attributes of development. For example, the need for police facilities is measured by the number of police calls for service gen- erated by a particular type and quantity of development. In calculating impact fees, costs for development-related facilities are allocated in proportion to the service needs created by different types and quantities of devel- opment. The following section describes methods used to allocate facility costs and calculate impact fees in ways that meet the proportionality standard. Impact Fees for Existing Facilities. It is important to note that impact fees may be used to pay for existing facilities, provided that those facilities are needed to serve additional development and have the capacity to do so, given relevant level-of- service standards. In other words, itmust be possible to show that the fees meet the need and benefit elements of the nexus. IMPACT FEE CALCULATION METHODOLOGY Any one of several legitimate methods may be used to calculate impact fees. The choice of a particular method depends primarily on the service characteristics and planning requirements for the facility type being addressed. Each method has ad- vantages and disadvantages in a particular situation, and to some extent they are interchangeable, because they all allocate facility costs in proportion to the needs created by development. Reduced to its simplest.terms, the process of calculating impact fees involves only two steps: determining the cost of development-related capital improvements, and allocating those costs equitably to various types of development In practice, though, the calculation of impact fees can become quite complicated because of the many variables involved in defining the relationship between development and the need for facilities. The following paragraphs discuss three methods for calculating impact fees and how those methods can be applied. March 10, 2003 JlffA~lldUS . Page 1-5 City of ~emecula - Impact Fee Study Introduction Plan-based Impact Fee Calculation. The plan-based method allocates costs for a specified set of improvements to a specified set of developments. The improve- ments are identified by a facility plan and the development is identified by a land use plan. Facility costs are allocated to various categories of development in pro- portion to the amount of development and the relative intensity of demand for each category. Demand is represented by an appropriate, quantifiable indicator. For example, demand for street improvements is typically measured by the number of vehicle trips generated by development. In this method, the total cost of relevant facilities is divided by total demand to cal- culate a cost per unit of demand. Then, the cost per unit of demand is multiplied by the amount of demand per unit of development (e.g. dwelling units or square feet of building area) in each category to arrive at a cost per unit of development. This method implicitly assumes that the entire service capacity of the specified fa- cilities will be absorbed by the planned development, or that any excess capacity is unavoidably related to serving that development. For example, it may be necessary to widen a street from two lanes to four lanes to serve planned development, but that development may not use all of the added capacity. Assuming the improve- ments in question are needed only to serve the new development paying the fees, it is legitimate to recover the full cost of the improvements through impact fees. The plan-based method is often the most workable approach where actual service usage is difficult to measure (as is the case with administrative facilities), or does not directly drive the need for added facilities (as is the case with fire stations). It is also useful for facilities, such as streets, where capacity cannot always be matched closely to demand. This method is relatively inflexible in the sense that it is based on the relationship between a particular facility plan and a particular land use plan. If either plan changes significantly, the fees may have to be recalculated. Capacity-based Impact Fee Calculation. This method can be used only where the capacity of a facilitY or system is known, and the amount of capacity used by a par- ticular type and quantity of development can be measured or estimated. This method calculates a rate, or cost per unit of capacity based on the relationship be- tween total cost and total capacity. It can be applied to any type or amount of de- velopment, provided the capacity demand created by that development can be es- timated and the facility has adequate capacity available to serve the development. Since the fee calculation does not depend on the type or quantity of development to be served, this method is flexible with respect to changing development plans. Under this method, the cost of unused capacity is not allocated to development, so unused capacity would not be covered by impact fees ff it is not absorbed by devel- opment. Capacity-based fees are most commonly used for water and wastewater systems. lPlarch 10, 2003 A4AM~U$ Pa~e I-6 ClOt of Temecula - Impact Fee Study Introduction To calculate a capacity-based impact fee rate, facility cost is divided by facility ca- pacity to arrive at a cost per unit of service. To determine the fee for a particular development project, the cost per unit of capacity is multiplied by the amount of capacity needed by that project. To produce a schedule of impact fees based on standardized units of development (e.g. dwelling units or square feet of building area), the rate is multiplied by the amount of service needed, on average, by those units of development. Standard-based Impact Fee Calculation. The standard-based method is related to the capacity-based approach in the sense that it is based on a rate, or cost per unit of service. The difference is that with this method, costs are defined from the out- set on a generic unit-cost basis and then applied to development according to a standard that sets the amount of service or capacity to be provided for each unit of development. The standard-based method is useful where facility needs are defined directly by a service standard, and where unit costs can be determined without ref- erence to the total size or capacity of a facility or system. Parks fit that description. It is common for cities or counties to establish a service standard for parks in terms of acres per thousand residents. In addition, the cost per acre for, say, neighbor- hood parks can usually be estimated without knowing the size of a particular park or the total acreage of parks in the system. This approach is also useful for facilities such as libraries, where it is 'possible to es- timate a generic cost per square foot before a building is actually designed. One advantage of the standard-based method is that a fee can be established without committing to a particular size of facility, and facility size can be adjusted based on the amount of development that actually occurs. FACILITIES ADDRESSED IN THIS STUDY Impact fees for the following types of facilities and improvements will be addressed in this report: · Parks and Recreation · Open Space and Trails · Street Improvements/Traffic Signals · Libraries · Corporate Facilities · Fire prOtection Fadlities · Police Fadlities The impact fee analysis for each facility type is presented in a separate chapter of this report. March !0, 2003 ttqAPEMUS P, Wo !-7 ~0~ o£ Temecula - Impact Fee Study Development and Demand Data CHAPTER 2 DEVELOPA4ENTAND D£A4AND DATA Both existing and planned development must be addressed as part of the nexus analysis required to support the establishment of impact fees. This chapter of the report organizes and correlates information on existing and planned development to provide a framework for the impact fee analysis contained in subsequent chap- ters of the report. The information in this chapter forms a basis for establishing levels of service, analyzing facility needs, and allocating the cost of capital facilities between existing and future development and among various types of new devel- opment. Data on land use and development employed in this study are based on the Temec- ula General Plan and on additional information provided by the Temecula Com- munity Development Department, Planning Division. Demographic data are from the U.S. Census Bureau and from California Department of Finance Demographic Research Unit population estimates. Data on existing and planned development used in this study represent the best available estimate of existing and planned de- velopment as of January 1, 2003. BACKGROUND AND SEITING The City of Temecula was incorporated in 1989. It is located in the fast- developing Southwestern corner of Riverside County along the 1-15 Freeway, mid- way between Riverside and San Diego. Nearby communities are Murrieta and Lake Elsinore. The City's boundaries encompass the historical town of Temecula, and much of the 87,000-acre planned community of Rancho California, which began development in the late 1960s. The chart in Figure 2-A depicts the City's esti- mated January 1 popula- tion year-by-year from 1992 through 2002. The City's January 1 2002, population is estimated by the California Depa~iment of Finance at 72,700. As the chart shows, Temec- ula's population has grown very rapidly in recent Figure 2A City of Temecuh Popuhfion (1992 - 2002) IV'~rch'l O, 2.003 ltqA..WI4US Pa.~e 2- I City o£Teraecula - Impact Fee Study Development and Demand Data years, averaging 8.9% per year between 1992 and 2002, and almost 11% per year since 1997. On a percentage basis, Temecula was the second fastest growing City in California in 2001. At the same time, the City has experienced a great deal of non-residential development, including a regional mall, and extensive business park construction. Based on the current General Plan, residential development antici- pated within the current City limits is projected to support a total population of more than 110,000. STUD Y AREA AND TIME FRAA4E Except as noted in subsequent sections of this report, the impact fee analysis does not address Temecula's sphere of influence. Development data shown in this sec- tion represents only the area within the City's current boundaries. To the extent that land within Temecula's sphere of influence is annexed in the future, the cost of capital facilities needed to serve those areas is expected to be covered by develop- ment agreements. The timeframe for this study extends from the present to buildout of all land desig- nated for development within the current City limits. The term "buildout' is used to describe a hypothetical condition in which all currently undeveloped land in the study area has been developed as indicated in the Land Use Element of the General Plan. The time required for buildout depends on the rate at which development occurs. This study does not project a target date for buildout, because the rate and timing of development do not affect the impact fee analysis. DE VEL OPA4ENT TYPES Because it is not possible to know in detail the types of development that will occur in the future, this study uses a set of fairly broad land use categories in the impact fee'analysis. Those categories are shown in the development data tables presented later in this chapter. Some land use designations defined in the General Plan are grouped into broader categories here. However, except as noted, the impact fees are calculated in a manner that allows fees to be adjusted to the specific impacts of a particular development project, if necessary. That need can arise when a Particu- lar project does not fit neatly within one of the categories defined in this study. Such adjustments are most commonly needed for specialized commercial projects, and for uses, such as churches, hospitals, and facilities for non-profit agencies. UNITS OF DE VEL OPA/IENT AND CONVERSION FA CTORS In this study, quantities of existing and planned development are measured in terms of certain units of development Those units are discussed below. · ~ 10, 2003 A~AXIMU$ P,~e 2-2 City o£ Temenula - Impact Fee Study Development and Demand Data Acreage. Land area is a fundamental attribute of all types of development. Net acreage, representing the useable acreage of a development site after street right-of- way are dedicated, is used in this study as the standard unit of development for all non-residential land use categories. Dwelling Units. The dwelling unit (DU) is the most commonly used measure of residential development, and is the standard unit for residential development in this study. Building Area. For non-residential development, building area in square feet or thousands of square feet may be used to represent development in some situations. When building area is used in this study the units of development are thousands of square feet (KSF). In some cases, it is necessary or convenient to convert one type of development unit to another. Some types of factors used in those conversions are discussed below. Residential Density. The relationship between dwelling units and acreage is re- ferred to as "density," and is defined by the average number of dwelling units per acre for a particular type of residential development. The inverse of density is acres per dwelling unit. For example, single family residential development might have a density of 4.0 dwelling units per acre, which equates to 0.25 acres per dwelling unit. Floor Area Ratio. Floor area ratio (FAR) is a factor that represents the relationship between building area and site area for non-residential development. For example, a FAR of 0.25:1 (or more commonly just 0.25) indicates that building area is 25% of site area. Translated into square feet, each acre (43,560 square feet) of site area would convert to 10,890 (43,560 x 0.25) square feet or 10.89 KSF of building area. DEMAND VARIABLES AND IMPA CI' FA CTORS In calculating impact fees, the relationship between facility needs and urban devel- opment must be quantified in cost allocation formulas. Certain measurable attrib- utes of development (e.g.; population, vehicle trip generation) are used in those formulas' as "demand variables" to reflect the impact of different 'types and amounts of development on the demand for specific public services and the facilities that support those services. Demand variables are selected either because they directly measure service demand created by various types Of' development, or because they are reasonably correlated with that demand. For example, the service standard for parks in a community is typically defined as a ratio of park acreage to population. As population grows, more parks are needed A,lam..h 10, 2003 A4AXIA4U$ Page 2-3 CI~, of Temecula - lmpac~ Fee Study Development a~d Demand Data to maintain the desired standard. Logically, then, population is an appropriate yardstick for measuring the impacts of development on the need for additional parks. Similarly, the need for capacity in a street system depends on the volume of traffic the system must handle. Thus the vehicle trip generation rate (the number of vehicle trips per day generated by one unit of development) is an appropriate de- mand variable to represent the impact of development on the street system. Each demand variable has a specific value per unit of development for each land use category. Those values may be referred to as demand factors or impact factors. For example, on average, one single-family detached dwelling unit generates about one vehicle trip during the p.m. peak hour. Consequently, the peak-hour traffic impact factor for single-family residential development is 1.0 trips per dwelling unit. Other land use categories would have different impact factors. Some of the impact factors used in this study are based on widely-accepted standards (e.g., the trip generation rates), while others are based on local conditions (e.g., population, police calls). The specific demand variables used in this study are discussed below and the actual values of demand factors for each land use category are shown in Table 2.1. Table 2.1 Detaand Factors Developtaent Der NetAcres FloorArea KSFper Population WtdAcres PkHrTrip~ policeCalle Type Units ~ perUnit~ Ratio 3 Acre a perDUs perAcre 6 perUnit ? perUnit~ g~esidential, Detached DU 0.28 N/A N/A 3.3.5 1.00 1,0 0.52 ~.esidential, Attached DU 0.13 N/A N/A 2.40 1.12 0.7 0.92 ?rofessional Office Ao'e 1.00 0.40 17.42 0.00 2.06 40.0 2.80 iBusiness Park/Light lnd Acre 1.00 0.40 17.42 0.00 1.73 24.0 2.20 :Commercial, l~etai] Acre 1.00 0.30 13.07 0.00 3.72 $0.0 6.80 Commercial, Highway Acre 1.00 0.30 13.07 0.00 3.72 $0.0 6.80 Commercial, Service Ac~ 1.00 0.30 13.07 0.00 2.14 35.0 3.40 PublicAmtitudonal Acre 1.00 0.25 10.89 0.00 0.$0 10.0 4.00 Basic units of devel0ptaent used in this study; DU = dwelling unit Average net acres per unit based on cxisdng development Typical floor area ratio (building area/net site mca) for the development type E~timated non-residential building arc~ per acre in thousands of aluare feet (KSF) based on the Floor A~ea Ratio Population per DU based on data f~om the 2000 Census and the California Dept of Finance Factors used to ~preseta relative demand per acre for city haU-ba~d functions (see text) peak hour vehicle trips per unit b~ued on Traf~ Gea~ra~ot~ San Diego Association of Governments Police cars per unit per year based on analy~s of 2001 Temecula PD data b,~ MAXIMU$ (see text} Population per Unit of Deueloprnent. Population per unit of development is used as a demand variable to calculate impact fees for certain types of fadlities in this study. Because population is tied to residential development, the value of this vari- able for all non-residential land uses is zero. A4atr. JI 10, 2003 ~MiAT~IIJ~ P~e 2-4 Cl(y o£ Temecula o Impact Fee Study Development and Demand Data It is important to emphasize that, rather than using actual population estimates or census numbers, resident population figures used in this study are adjusted to a "full-occupancy" level. That device is intended to account for the fact that actual population fluctuates with vacancy rates, but once a residence is constructed, the City has a responsibility to serve its occupants. Full-occupancy population esti- mates are established by applying an average persons-per-dwelling factor to the ac- tual number of existing dwelling units, or the projected future dwelling units, in each residential land use category. Persons-per-dwelling factors are based on an analysis of the most recently available Census data. For certain public facilities, such as parks and libraries, population is a useful meas- ure of service demand, and can be used in setting service levels and allocating facil- ity costs. However, for most public facilities, resident population accounts for only a portion of demand, and does not, alone, represent the impact of all development on those facilities. Weighted Acre Factors. This set of factors represents the relative impact of acres of different development types on functions housed in City Hall. The factors were developed using detailed analysis from the 1996 development impact fee study by David M. Griffith & Associates (now part of MAXIMUS). The impact factors from that study were converted into per-acre terms, and then scaled to single- family residential development. In other words, single-family residential develop- ment was assigned a weight of 1.0, and the impacts of other development types are set relative to' that base. Factors for non-residential development are proportion- ately larger. For example, the weighted acre factor for retail commercial develop- ment is 3.72, indicating that one acre of such development has 3.72 times as much impact on City Hall-based functions as one acre of single-family residential devel- opment. Peak-Hour Trips per Unit of Development. Traffic generation in terms of peak hour trips is used here to measure the impact of development on the City's street system. Peak hour traffic is used rather than average daily traffic, because peak volumes determine the need for street capacity. The trip generation rates used in this study are based on Traffic Generators, published by the San Diego Association of Governments (SANDAG). Those rates are consistent with the Institute of Trans- portation Engineers publication Trip Generation. Police Calls for Service per Unit of Development. Demand for Police Department services is represented in this study by the average number of calls for service per unit of development per year in each land use category. The factors are based on an analysis by MAXIMUS of actual calls for service by reporting district for calen- dar year 2001. A4arch lO, 200; ~ffAXlA41.~ Page 2-$ CIO,, oF Temecula - Impact Fee Study Development and Demand Data Calls-for-service factors used in this study are based primarily on an analysis of dis- tricts containing only, or mostly a single type of development. There are three po- lice reporting districts in the City containing almost exclusively single-family resi- dential development, and another with 90%0 single-family units and 10%0 multi- family units. Among those districts, the number of calls for service per unit ranged from 0.41 to 0.65. The median value was 0.52, which is used in this study. Only one reporting district in the City is composed almost entirely of multi-family resi- dential development. The factor for that area is 1.2 calls per dwelling unit. How- ever, a number of districts contain a mix of single-family and multi-family devel- opment. By using the selected single-family residential factor to cancel out the ef- fect of single-family development in those districts, we estimated multi-family fac- tors ranging from 0.92 to 1.13. We selected the lowest of those factors for use in the impact fee analysis. Both of the selected residential factors are in the Iow end of the range found in other similar MAXIMUS studies. Only one reporting district in Temecula is devoted to a single non-residential land use type. That district, located just south and east of the Winchester Road/Ynez Road intersection, is the site of a regional mall. Calls for service were reported in that district' at a rate of 6.8 per acre for 2001 and that factor is used in this study for both the retail and highway commercial categories. No specific factors could be calculated for service commercial development, so the factor for that category was set at 50% of the retail rate, based on experience with other studies. Good data on calls for one district containing mostly business park/light industrial development allowed us to establish a rate of 2.2 calls per acre for that category. The factor for the office category was set at 2.8, 25% above the business park category--again based on experience with other studies. The districts analyzed to establish these calls-for-service factors contain develop- ment similar to that expected in Temecula in the future. A few areas of older de- velopment with relatively high rates are not represented in these figures. Conse- quently, when the factors shown in Table 2.1 are applied to existing development in Temecula, the resulting number of calls for service, as shown in Table 2.2 (23,723), is about 6% lower than the actual number of calls for service recorded in calendar year 2001 (25,319). DE VEL OPAfEAIT DA TA Tables 2.2 through 2.4 present data on existing and planned development in the City, based on estimates by the Temecula Planning Division. Table 2.2, on the next page, shows data for existing development as of January 1, 2003. Jt4~ch[O, 2~$ it,JAXT,~US P~e2-6 City of Ternecula - Impact Fee Study Development and Demand Data Table 2.2 Existing Development in the City (January 1, 2003) Development Dev Dwelling Bldg Area Popula- Weighted Peak Hr Police Type Acres ~ Units z (KSF) ~ tion 4 Acres s Trips s Calls 7 Residential, Detached 5,542 19,470 N/A 65,225 5,542 19,470 10,124 Residential, Attached 589 4,459 N/A 10,702 657 3,122 4,103 Professional Office 130 0 2,270 0 269 5,212 365 Business Park/Light Ind 765 0 13,321 0 1,326 18,348 1,682 Commercial, Retail 598 0 7,809 0 2,225 29,880 4,064 Commercial, Highway 95 0 1,236 0 352 4,730 643 Commercial, Service 194 0 2,539 0 416 6,801 661 Public/Institutional 520 0 5,667 0 260 5,204 2,082 Totals 8,433 23,930 32,843 75,927 11,047 92,766 23,723 Developed net acres. Data provided by the Temecala Planning Division Dwelling units based on 2000 data from California Department of Finance Estimated non-residential building area = Acres x KSF per Acre from Table 2.1 Estimated population at 09/o vacancy rate = DUs x average population per unit from Table 2.1 Acres weighted to reflect demand for city hall services = acres x weighted acre factor from Table 2.1 Peak hour trips = development units x peak hour trips per unit from Table 2.1 Police calls per year = dwelling units or non- res acres x police calls per unit per year from Table 2.1 Table 2.3 presents a forecast of future development in the City, based on the City's current General Plan. Table 2.3 Planned Future Development in the City (to Buildout of the General Plan) Devdopment Der Dwelling Bldg Area Popula- Weighted Peak Hr Police Type Acres t Units z (KSF) ~ fion 4 Acres s Trips s Calls ? Residential, Detached 3,282 10,081 N/A 33,771 3,282 10,081 5,242 Residential, Attached 207 2,657 N/A 6,377 231 1,860 2,444 Professional Office 229 ~ 0 3,990 0 472 9,160 641 Business Park/Light Ind 555 0 9,670 0 963 13,320 1,221 Commercial, Retail 211 0 2,757 0 786 10,550 1,435 Commercial, Highway 67 0 876 0 249 3,350 456 Commercial, Service 263 0 3,437 0 563 9,205 894 Public/Institutional 211 0 2,298 0 106 2,110 844 Totals 5,025 12,738 23,028 40,148 6,651 59,636 13,177 See Table 2.2 for footnotes IHarch I0, 2003 lvlAX~ US P~ff e 2-7 CBy of Temecula - Impact Fee Study Development and Demand Data Table 2.4 on the next page sums the data from the previous two tables, and repre- sents a forecast of total development within the current City boundaries at buildout. Table 2.4 Total Development in the City (at Buildout) Development Der Dwelling Bldg Area Popula- Weighted Peak Hr Police Type Acres ~ Units 2 (KSF) 3 tion 4 Acres s Trips s Calls ? Residential, Detached 8,824 29,551 N/A 98,996 8,824 29,551 15,367 Residential, Attached 796 7,116 N/A 17,079 888 4,981 6,547 Professional Office · 359 0 6,260 0 741 14,372 1,006 Business Park/Light Ind 1,320 0 22,991 0 2,289 31,668 2,903 iCommercial, Retail 809 0 10,567 0 3,011 40,430 5,498 Commercial, Highway 162 0 2,112 0 602 8,080 1,099 Commercial, Service 457 0 5,976 0 979 16,006 1,555 Public/Institutional 731 0 7,965 0 366 7,314 2,926 13,458 36,668 55,871 116,076 ! 17,698i 152,402 36,900 See Table 2.2 for footnotes The projected increase in most of the demand variables shown in these tables (acres, dwelling units, population, peak hour trips and police calls) is very close to 50%, indicating that by those measures, the City is approximately 2/3 built out at present. 2005 A4AXIAaUS Pa~e 2-8 CRy o£ Teme~ula - Impact £ee Study Pat'ks and Recreation Facllltlea CHAPTER $ PARKS AND RECREATION FA CILITIES This chapter addresses the calculation of impact fees for park improvements and recreation facilities needed to serve future development in Temecula. Information on parks and recreation facilities used in this chapter is based on the 1993 Temec- ula ?arks and Recreation Master Plan and on additional information provided by the Temecula Community Services Department. SERVICE AREA The service area for the parks and recreation impact fee analysis is the existing City, which is the study area defined in Chapter 2 of this report. Because level-of-service standards are set on a citywide basis, impact fees for parks and recreation facilities will be calculated on a citywide basis and applied to new development in all parts of the City. The Parks and Recreation Master Plan calls for parks to be located in close proximity to all residential development projects in the City. This study as- sumes that future parks will be sited in a manner consistent with the location stan- dards set forth in the Master Plan, so that all future development subject to the park impact fees has reasonable access to City parks. Geographic distribution of recreation facilities is not an issue, because those facilities may serve large areas or the entire City METHODOLOGY This chapter calculates impact fees using the standard-based method discussed in Chapter 1. Standard-based fees are open-ended. They are based on a ratio of fa- cilities to users and do not depend on assumptions about the ultimate limits of de- velopment in the City. All fees in this report are calculated in current dollars and should be adjusted annually to reflect changes in facility costs. DE/kl/UVD VARIABLE Virtually all local governments define the need for parks and recreation facilities as a function of population, and that is the case in Temecula. Consequently, popula- tion is used as the demand variable in calculating impact fees in this chapter. Be- cause the fees are population-driven, they apply only to residential development. LEVEL OF SERVICE Park hnprovements. The Parks and Recreation Master Plan sets a standard of 5.0 acres of parks per thousand residents--3 J acres in community parks and 1.5 acres in neighborhood parks. However, to calculate impact fees for park improvements, ;Watch !0, 2003 A4AXIIffU$ Pa~e 3-1 City o/'Ternecula - Impact Fee Study Parka and Recreation £adllties this study uses the existing ratio of City-owned developed park acreage to population as the level-of-service stan- dard. That approach eliminates any existing deficiencies relative to the specified standard, and ensures that impact fees paid by future develop- ment do not subsidize the provision of park improvements for the existing community. Table 3.1 lists existing City-owned parks and shows the developed acreage of each park. The total developed acreage of existing parks will be used to calculate the ratio of existing devel- oped park acreage to existing popula- tion in Temecula. That ratio is shown in Table 3.2 below. Recreation Facilities. The City has not adopted numerical standards for rec- reation facilities. The calculation of impact fees for these facilities is based on the existing ratio of facilities to population. In this case, because of the variety of facility types involved, the quantity of existing facilities is meas- ured by their replacement value instead of their size. That technique not only provides a common basis for measur- Table 3.1 Existing Developed City Parks Park Developed Name Park Acres Community/Sports Parks Margarita Community Park 12.16 Pala Community Park 10.00 Paloma Del Sol Park 9.50 Rancho California Sports Park 73.00 Temeku Hills Park 11.41 Subtotal Communit?/ /Sports Parks 116.07 NeigbborboodISpe~ialty Parks Bahia Vista Park 0.46 Butterfield Stage Park 3.13 Calle Aragon Park 0.50 Crowne Hill Park 3.56 ohn McGee Park 1.00 Kent Hintergardt Memorial Park 9.11 Loma Linda Park 2.64 Long Canyon Creek Park 3.15 Meadows Park 5.18 Nakayama Park 0.28 Nicholas Road Park 2.93 Pablo Apis Park 2.29 Riverton Park 4.94 P. otary Park 1.09 ,Sam Hicks Monument Park 1.83 Stephen Linen Jr. Memorial Park 2.13 Temecula Duck Pond 7.51 Temecula Skate Park 1.00 Vail Ranch Park 16.43 Veteran's Park 3.50 Voorburg Park 0.75 Winchester Creek Park 4.49 Subtotal Nbrlxt/$~ecial~ Parks 77.90 Total Developed Park Acreage 193.97 ing different types of facilities, but it Source: Temecula Community Services Depamnent also facilitates adjustments for outstanding debt on existing facilities. Full replace- ment value, rather than a depreciated replacement value is used here, because the Table 3.2 Existing Ratio of Developed Park Acreage to Population Acres ~ Population 2 per Capita per 1,000 193.97 75,927 0.00255468 2.55468 See Table 3.1 Estimated existing. See Table 2.2 ~ 10, 2003 tlffAXl~l~ Page $-2 C_.lly o£ Temecula - Irnlaact Fee Study ParRs and Recreation £aclll#ea impact fees calculated in this chapter are for the purpose of constructing additional facilities to serve new development. If the intent were for new development to buy into existing facilities, depreciated replacement value would be used to calculate "buy-in" fees. The level of service standard used here is the ratio of existing facility replacement cost to existing population, where replacement cost has been reduced by the amount of outstanding debt on existing facilities. Basing the impact fees on the ex- isting service level eliminates the need to address any existing deficiencies relative to a specified standard, and ensures that impact fees paid by future development do not subsidize the provision of community and recreation facilities for the existing community. Table 3.3 lists existing City-owned community and recreation facilities and shows their estimated replacement cost. Table 3.3 Existing Community and Recreation Center Facilities Building Bldg Repl Site Land Total Facility Sq Ft Cost z Acreal~e Value 3 Repl Cost Community Recreation Center ~ 26,480 $ 6,583,000 3.80 $ 767,493 $ 7,350,493 Temecula Community Center 5,900 $ 1,180,000 1.60 $ 327,089 $ 1,507,089 Mary Phillips Senior Center 9,248 $ 1,849,600 1.20 $ 242,461 $ 2,092,061 Chaparral Pool 4 N/A $ 1~500~000 N/A $ $ 1fl00~000 Total 41~628 $11~112~600 6.60 $1t337t043 $12t449~643 Building cost shown is replacement cost less outstanding debt of $6,185,000 Estimated replacement cost includes design, construction, site development, FFt~E, project administration and other miscellaneous costs Land value estimated by the Temecula Community Services Department Replacement cost shown is only the Cit~ cash contribution to pool improvements PER-CAPITA COST Park Improvements. In Table 3.4, on the next page, the existing ratio of developed park acres to population from' Table 3.2 is applied to the estimated average per- acre cost for park improvements to calculate the per-capita cost for future park im- provements at the existing level of service. The estimated improvement cost per acre shown in Table 3.4 is a weighted average cost estimate for constructing com- munity and neighborhood parks with fadlifies similar to those in existing parks. l~wch I0, 2003 ~4AXlil4~ Page $-3 Cl~/ of Temecula - impact Fee Study Par~ and Recreation Fadlltle~ Acres per 1,000 2.55468 Table 3.4 Cost per Capita - Park Improvements I Acres I Impr°vement per Capita Cost per Acre z 0.00255468 $200,000 Cost per Capita $510.94 See Table 3.2 Estimated average improvement cost provided by the Temecula Community Services Department Cost per capita = acres per capita x improvement cost per acre Recreation Facilities. Table 3.5 shows the per-capita replacement cost of existing facilities, based on the total replacement cost from Table 3.3 and current popula- tion estimates, as shown in Chapter 2. That per-capita cost will be used to calculate the impact fee for community and recreation centers. Table 3.5 Cost per Capita - Existing Recreation Facilities Total Facility I Existing Cost I Repl Cost I Population 2 per Capita 3 $12~449~643 75~927 $163.97 See Table 3.3 See Table 2.2 Cost per capita = total facility cost / existing population Combined Park Improvements and Recreation Facilities. Table 3.6 totals the per- capita costs for park improvements and recreation facilities, from the previous two Table 3.6 Combined Cost per Capita Cost Component per Capita Park Improvements $510.94 Recreation Facilities $163.97 Total $674.90 See Tables 3.4 and 3.5 ~ 10, 2003 I~U~?~US P4~e 3-4 City o£Temecula - Impact Fee Study Pt, rl~ and Recreation Fadlltle$ IA/IPA CT FEE CALCULATION In Table 3.7, the total cost per capita from Table 3.6 is converted into impact fees per unit of development, by development type. To calculate fees per unit of devel- opment, the per-capita cost is multiplied by the average number of people per dwelling unit for each type of residential development. Table 3.7 Impact Fees per Unit of Development - Park Improvements/Recreation Facilities Development Dev Population Cost Impact Fee Type Units ~ per Unit 2 per Capita $ per Unit a Residential, Detached DU 3.35 $674.90 $2,260.92 Residential, Attached DU 2.40 $674.90 $1,619.77 DU = dwelling unit See Table 2.1 See TaMe 3.6 Impact fee per unit = population per unit x cost per capita PROJECTED REVENUE Finally, the impact fees from Table 3.7 can be applied to future development to project the total revenue that would be generated by those fees through buildout of the study area, assuming futur, e development occurs as projected in Chapter 2 of this study. It is important to note that most future development in Temecula is covered by existing development agreements or vesting tentative subdivision maps, and would not be subject to the fees calculated in this study. Those developments may have.agreed .to construct parks or recreation facilities, or will pay fees in effect at an earlier time. Table 3.8 on the next page shows the projected revenue that would be generated if the fees calculated in this chapter are applied to future residential development not ' subject to existing development agreements or vesting tentative maps. CIO' of Temecula - Impact Fee Stucly Partes ancl Rocreatlon £.~cllltles Table :;.8 Projected Revenue - Impact Fees for Park Improvements/Recreation Facilities Development Der Future Total Fees Projected Type Units ~ Units z per Unit 3 Revenue 4 Residential, Detached DU 2,163 $2,260.92 $ 4,890,379 Residential, Attached DU 744 $1,619.77 $ 1,205,106 Total Revenue $ 6,095,486 DU = dwelling unit Furore residential development potentially subject to these fees See Table 3.7 Projected revenue = furore units x total fees per unit All costs used in this report are given in current dollars. To keep pace with chang- ing price levels, the fees calculated above should be adjusted annually for inflation. See the Implementation Chapter for more on indexing of fees. 2005 ~I~OIi,IU$ Pao~o 3-6 CIO~ of Temecula - Impact Fee Study ORen Space and Tr~ll DeveJopme~t CHAPTER 4 OPEN SPA CE LAND AND TRAIL DEVELOPA4ENT This chapter addresses open space land acquisition and trail development needed to serve future development in Temecula. A separate fee will be calculated for each of those facility types. Information on existing and planned open space and trails used in this study is based on the 2O02 city of Temecula Multi-Use Trails and Bikeways Master Plan and on additional information provided by the Temecula Community Services De- partment. SERVICE AREA The service area for the open space and trails impact fee analysis is the existing City, which is the study area defined in Chapter 2 of this report. Because these fa- cilities benefit the entire community, impact fees for open space and trails are calculated on a citywide basis and applied to new development citywide. The Multi-Use Trails and Bikeways Master Plan calls for trails and bikeways to be developed throughout the City. This study assumes that future trails will be sited in a manner consistent with the intent of the Master Plan, so that trails will be rea- sonably accessible to all future development that is subject to the fees. Open space will not necessarily be dispersed throughout the City, but will be acquired in loca- tions that benefit the entire community by providing for trails and passive recrea- tion, preserving views, and/or protecting environmentally sensitive areas. A4 TI"IODOLOGY This chapter calculates impact fees using the standard-based method discussed in Chapter 1. Standard-based fees are based on a ratio of assets to population. As a result, they are open-ended and do not depend on assumptions about the ultimate limits of development in the City. DEA4AND VARIABLE Virtually all local governments define the need for parks and recreation facilities, including trails and open space, as a function of population. That is the case in Temecula. Consequently, population is used as the demand variable in calculating impact fees in this chapter. Because the fees are population-driven, they apply only to residential development. l~atch 10, ZOOS A4AXIA4US Page4-1 Oty o£ Temecula - Impact Fee Study Open Space and TraII Developm~nt LEVEL OF SERVICE The City has not adopted numerical standards for open space or trails, although the Multi-Use Trails and Bikeways Master Plan does propose a system of trails and bikeways for the City. The calcula- Table 4.1 tion of impact fees for open space and trails in this chapter is based on the existing ratios of City- owned open space acreage and miles of existing trails to popula- tion. That approach eliminates the need to address any existing defi- ciencies relative to a specified stan- dard, and ensures that impact fees paid by future development do not subsidize the provision of open space and trails for the existing community. Existing Open Space Open Space Existing Open Location Space Acres: Pala Community Park 12.0 Rancho California Sports Park 48.0 Veterans Park 10.0 Long Canyon Creek 1.5 Margarita Park 3.0 Roripaul~h Ranch 201.0 Totals 275.5 1 Excludes developed portions of parks. Data provided by the City of Temecula Community Services Dept. Open Space. Table 4.1 lists existing City-owned open space sites and their acreage. Table 4.2 shows the ratio of existing open space acreage to population. That ratio is based on current population estimates, as shown in Table 2.2. It will be used to calculate the impact fee for open space land acquisition. Table 4.2 Ratio of Existing Open Space Acreage to Population Existing Open Space Acres ~ 275.5 See Table 4.1 See Table 2.2 Population z Capita Residents 75~927 0.0036285 3.6285 Trails. Table 4.3, on the next page, lists existing improved public trails in Temecula with their length in miles. Although not all of those trails are on City-owned land, they have all been improved by the City or by developers for public use. A/larchlO, 200$ it4AXIMUS Pa~e4-2 Cl~y of Tem~cula - Impact Fee Study Open Space and Trail Development Table 4.3 Existing Improved Public Trails Existing Length Public Trails (Miles} Woodside Chantemar Trail 1 0.41 Rancho California Trail I 0.71 Tradewinds Trail (DePortola E. of Butterfield) 2 1.00 Highlands Trail (Ynez/$anfiago) ~ 0.19 Santa Gertrudis Trail a 2.28 Total Miles 4.59 Owned and improved by the City of Temecula; development stan- dard similar to type M1 trail as illustrated in the Trails and Bike- ways Master Plan Privately-owned; improved as part of an approved development plan;development standard similar to trail type MI as illustrated in the Trails and Bikeways Master Plan Located on Riverside Co Flood Control property. The City has paid for paving and construction of a pedestrial underpass for this Table 4.4 calculates existing miles of trails per capita, using the total miles of exist- ing trails from Table 4.3 and the estimate of existing population from Table 2.2. Table 4.4 Miles Per Capita - Existing Trails Trails ~ Population 2 per Capita 4.59 75~927 0.000060 See Table 4.3 See Table 2.2 Miles per capita -- existing miles / existing population PER-CAPITA COST Open Space. The existing level of service for open space in Temecula, in terms of acres per 1,000 residents, is shown in Table 4.2. Table 4.3, on the next page, uses A4arc~ 10, 200; Clqg of Ternecula - Impact Fee Study Open Space and Trail Development the existing population ratio and an estimated average per-acre cost for open space land acquisition to calculate the per-capita cost to provide additional open space acreage needed to maintain the existing ratio as the City grows. Table 4.5 Per Capita Cost - Open Space Acres per [ Cost per [ Cost per Capita ~ Acre 2 I Capita 0.0036285 $50~000 $181.42 See Table 4.2 2 Estimate by the City of Temecula Cost per capita = acres per capita x cost per acre Trails. Table 4.6 shows the estimated average cost per capita to provide future trails, using the miles-per-capita ratio from Table 4.4. The cost per mile shown in Table 4.6 is based on a development standard defined as trail type M1 in the Multi- Purpose Trails and Bikeways Master Plan, and assumes a 10-foot wide right-of-way. Land acquisition cost is included in the estimated cost of trail development, at the same per-acre cost as open space land. Table 4.6 Per Capita Cost - Trails per Capita ~ Mile 2 Capita ~ 0.000060 $2531000 $15.29 See Table 4.4 Cost per mile estimated at $192,000 using data for type M1 improvements (see Trails and Bikeways Master Plan) plus 1.22 acres'of land per mile for 10-foot trail width) using the land cost from Table 4.5 Cost per capita -- miles per capita x cost per mile Table 4.7 on the next page shows the combined cost per capita for open space and trails from Tables 4.5 and 4.6. That combined cost will be used in calculating im- pact fees per unit of development. ~10~ o£Temecula - Impact Fee Study Open Space and Trail Development Table 4.7 Combined Cost per Capita Cost Cost per Component Capita ~ Open Space $ 181.42 Trails $ 15.29 Total $ 196.72 ~ See Tables 4.5 and 4.6 IA4PACT FEE CALCLII. ATION In Table 4.8, the combined per-capita cost from Table 4.7 is converted into impact fees per unit of development, by development type, for open space land acquisition and trail development. To calculate fees per unit of development, the combined per-capita cost for open space and trails is multiplied by the average number of people per dwelling unit for each type of residential development. Table 4.8 Impact Fee per Dwelling Unit - Open Space and Trails Development Persons Cost per Impact Fee Type per DU ~ Capita 2 per DU Residential, Detached 3.35 $196.72 $659.00 Residenfial~ Attached 2.40 $196.72 $472.12 See Table 2.1 See Table 4.7 Impact fee per Du -- cost per capita x per~ons per DU PRO]ECl'ED REVENUE Finally, the impact fees from Table 4.8 can be applied to future development to project the total revenue that would be generated by those fees through buildout of the study area, assuming future development occurs as projected in Chapter 2 of this study. It is important to note that most future development in Temecula is covered by existing development agreements or vesting tentative subdivision maps, and would not be subject to the fees calculated in this study. Those developments may have agreed to dedicate land and/or construct facilities, or will pay fees in ef- fect at an earlier time. A,gur..h 10, 200~ A,IAXIA/IU5 P~ge 4-5 CRy o£ Ternecula - impact Fee Study Open Space and TraII Development Table 4.9 shows the projected revenue that would be generated if the fees calcu- lated in this chapter are applied to future development not subject to existing de- velopment agreements or vesting tentative maps. Table 4.9 Projected Revenue - Fees for Open Space and Trails Development Dev Future Total Fees Projected Type Units t Units ~ per Unit 3 Revenue 4 Residential, Detached DU 2,163 $659.00 i $ 1,425,426 Residential~ Attached DU 744 $472.12I $ 351~259 Total Revenue $ 1~776~685 DU = dwelling unit Future residential development potentially subject to these fees See TaBle 4.6 Projected revenue = future units x total fees per unit All costs used in this report are given in current dollars. To keep pace with chang- ing price levels, the fees calculated above should be adjusted annually for inflation. See the Implementation Chapter for more on indexing of fees. ~ 10, 2003 MAXIM~ P,~'e 4-~ City o£Temecula - Impact Fee Stud~ Streets and TraStc Contol CHAPTER 5 STREETS AND TRAFFIC CONTROL This chapter of the report addresses street improvements and traffic control systems required to serve future development in Temecula. Development-related street im- provements and signals used to calculate impact fees in this analysis were identified by the City of Temecula Public Works Department. The improvements addressed in this section do not duplicate improvements cov- ered by the Western Riverside Council of Governments Transportation Uniform Mitigation Fee (TUMF) program, and the impact fees calculated in this chapter are intended to complement the TUMF. SERVICE AREA The service area for this impact fee analysis is the existing City, which is the study area defined in Chapter 2 of this report. The improvements to be funded with im- pact fees are on arterial streets and will handle citywide traffic. If areas within the City's sphere of influence are annexed in the future, the cost of providing street improvements to serve development in those areas is expected to be addressed in development agreements. A4~THODOLOGY This chapter calculates impact fees using the plan-based method discussed in Chap- ter 1. Plan-based fees are calculated by allocating costs for a set of improvement needs to a certain set of land uses to be served by the improvements. That method results in a proportional allocation of costs, so that the share of street improvement costs charged to a particular development project equals the share of new traffic generated by that project. Thus, if a project that generates 1% of the traffic added by new development, it will be allocated 10/0 of the total cost of improvements needed to serve new development. DEMAND VAR[ABLE The demand variable used to allocate improvement costs for street improvements in this study is peak-hour trips (PHT) per unit of development. Peak:hour trips are used instead of average daily trips (ADT) because peak traffic is more critical in de- termining the amount of system capacity required to maintain a certain level of ser- vice. lffat'c.b 10, 2003 A4AXII~US Page .%1 00~ of Temecula - Impact Fee Study Streets and Trafdc Contol Trip generation rates are used in this analysis to project traffic volumes for broad categories of development, and are based on p.m. peak-hour rates from the San Diego Association of Governments (SANDAG) publication, Traffic Generators. The resulting traffic volumes are used to establish an overall average improvement cost per peak hour trip for all future development. For those categories of devel- opment (e.g., commercial) that encompass a variety of uses with different trip gen- eration characteristics, the trip generation rates used in this study are intended to reflect average impacts for the category as a whole. It should be emphasized that the trip generation rate assigned to any category of development in this study may be different from the rate for a specific type of de- velopment in that category. That is especially true of commercial development When imposing impact fees on a particular project, the City should use a rate that reflects, as nearly as possible, the actual trip generation characteristics, which is to say the actual impact, of that project. When assessing the trip generation characteristics of particular development pro- jects in order to determine an appropriate impact fee, the City may use other sources of trip generation data to define the specific impacts of the project, includ- ing the Institute of Transportation Engineers (ITE) publication, Trip Generation. LEVEL OF SERVICE The Circulation Element of Temecula's General Plan defines level of service (LOS) D as the standard for Temecula's street system. Level of service designations used by tranportation planners range from LOS A (free traffic flow, insignificant delays at intersections) to LOS F (forced flow, stop and go traffic, excessive delays at in- tersections). LOS D is described as reaching the upper limit of stable flow condi- tions with traffic volumes reaching 90% of capacity. At that level of service, inter- sections experience significant congestion and vehicles may have to wait through more than one cycle at signalized intersections. FACILITY NEEDS The Temecula Public Works Department has developed a list of street improve- ments and traffic control systems needed to serve future development within the existing City boundaries. Table .5.1 on the next page lists the street improvements addressed in the impact fee analysis provides a cost estimate for each improvement. Table 3.1 also shows the estimated percentage of each street improvement needed to serve future development. More detailed information on the improvement pro- jects is provided in Appendix _8. In addition to the street improvements, the De- pa~ilnent has identified a need for 59 additional traffic signals at an estimated cost of $8,850,000, plus 143,500 linear feet of signal interconnect cable and conduit at 10,2005 A4AXI~II. IS PaS'e $-2 City of Temecula - Impact Fee Study Streets and Traffic Contol a cost of $2,700,000. The total estimated cost of signals and the interconnect sys- tem amounts to $11,$$0,000. Table 5.1 Development-Related Street Improvement Projects Estimated New Dev New Dev Roadway Project Cost Share Cost Share Business Park Drive $ 102,078 75% $ 76,559 ButterfieldStage Road $ 1,408,156 100% $ 1,408,156 Commerce Center Drive $ 110,850 75% $ 83,138 DePortolaRoad $ 1,863,061 100% $ 1,863,061 Del Rio $ 81,480 100°A $ 81,480 Diaz Road $ 6,060,307 60% $ 3,636,184 Enterprise Circle West $ 65,034 100%o $ 65,034 Front Street $ 408,973 100% $ 408,973 Highway79 South $ 124,164 100% $ 124,164 'edediah Smith Road $ 894,700 40% $ 357,880 'efferson Avenue $ 3,054,577 50% $ 1,527,289 La Paz $ 2,500,000 100% $ 2,500,000 La Serena Way $ 83,063 100°A' $ 83,063 Margarita Road $ 1,072,219 80°~ $ 857,776 Meadows Parkway $ 1,154,867 70°~ $ 808,407 Moraga Road $ 5,625 100~ $ 5,625 Nicolas Road $ 3,702,346 75% $ 2,776,759 Overland Drive $ 8,047,886 75% $ 6,035,915 Pauba Road $ 2,884,962 100% $ 2,884,962 Rainbow Canyon Road $ 8,286,500 65% $ 5,386,225 Rancho California Road $ 2,422,428 60~ , $ 1,453,457 Rancho Vista Road. $ 468,158 100% $ 468,158 Rancho Way $ 28,643,480 100% $ 28,643,480 Rider Way $ 3,000 0% $ Santiago Road $ 1,265,866 100% $ 1,265,866 Solana Way $ 9,000 0% $ Via Montezuma $ -38,1¢0 100% $ 35,160 Vincent Moraga $ 288,342 100% $ 288,342 Via Rio Temecula $ 9,000,000 100% $ 9,000,000 Winchester Road $ 2,773,484 80% $ 2,218,787 Ynez Road $ 7:3641592 100% $ 713641592 Total $ 941184:358 87% $ 8117081489 See Appendix A for more detail on improvements ~ lO, 20O3 Pa~e~3 City o£Ternecula - Impact Fee Study SD'eets and Tratflc Conto! AVERAGE COST PER PEAK HOUR TRIP In order to allocate the cost of development-related improvements to future de- velopment projects in proportion to their impacts on the street system, the total cost of those improvements is averaged over the projected total number of addi- tional peak hour trips to be generated by new development in the study area. Ta- ble 5.2 shows the calculation of an average cost per peak hour trip for street im- provements and signal/interconnect projects. Table 5.2 Average Cost per Peak Hour Trip Cost of Improvements Estimated Added Peak Cost per Peak Related to Future Der Cost Hour Trips s Hour Trip 4 Street Improvements ~ $ 81,708,489 59,636 $ 1,370.12 Signals/Interconnect z $ 11~550~000 59~636 $ 193.68 $ 93~258~489 59~636 $ 1fl63.80 Costs estimated by the Temecula Public Works Department; See Table 5.1 Costs estimated by the Temecula Public Works Department See Table 2.3 Average cost per peak hour trip = estimated cost / added peak hour trips IMPACT FEE CALCULATION The average cost per peak-hour trip, from Table 5.2 is used to calculate the impact fee per unit of development for each category of development. Table 5.3 on the next page shows the resulting impact fees per unit of development for each cate- gory, calculated as the number of peak-hour trips per unit of development multi- plied by the average cost per peak hour trip. March 10, 2003 MAXIMUE PgS'e 5-4 CItj/ o£ Temecula - Impact Fee Study Streets and Traffic Contol Table 5.3 Street Impact Fees per Unit of Development Development Der Pk Hr Trips Cost per Pk Impact Fee KSF per Non-Res Fee Type Units ~ per Unit: Hr Trip 3 per Unit n Acre $ per KSF ~ Residential, Detached DU 1.00 $1,563.80 $ 1,563.80 N/A N/A P~esidential, Attached · DU 0.70 $1,563.80 $ 1,094.66 N/A N/A Professional Office Acre 40.00 $1,563.80 $ 62,551.91 17.42 $3,589.99 Business Park/Light Ind Acre 24.00 $1,563.80 $ 37,531.15 17.42 $2,153.99 Commercial, Retail Acre 50.00 $1,563.80 $ 78,189.89 13.07 $5,983.31 Commercial, Highway Acre 50.00 $1,563.80 $ 78,189.89 13.07 $5,983.31 Commercial, Service Acre 35.00 $1,563.80 $ 54,732.92 13.07 $4,188.32 Public/Institutional Acre 10.00 $1~563.80 $15~637.98 10.89 $1~435.99 D[J = dwelling unit See Table 2.1 See Table 5.2 Impact fee per unit of development = peak hour trips per unit of development x cost per peak hour trip See Table 2.1 Impact fee per KSF = impact fee per acre / KSF per acre Also shown in Table 5.3 is the conversion of non-residential impact fees from a per-acre basis to a building area basis. Per-acre fees for non-residential categories are converted to fees per thousand square feet (KSF) of building area using conver- sion factors from Table 2.1. If desired, fees for street improvements and signals can separated. Impact fees for street improvements represent 87.6% of the fees shown in Table 5.3. Impact fees for signals represent 12.4% As previously noted, the peak hour trip generation rate assigned to a particular category of development in this study is intended to represent the entire category, based on the expected mix of development types in that category. For the residen- tial categories, the fees shown in Table 5.3 should be appropriate for virtually all projects in a category. But for non-residential categories, because they cover a wide range of potential development types, the fees shown in Table 5.3 may not be ap- propriate for a particular project. When applying the fees to an actual project, the City should review the trip genera- tion characteristics of that project, ff necessary a project-specific impact fee can be calculated for that project. The formula for calculating a project-specific impact fee is as follows: No. of Development Units in Project x Trips per Dev. Unit x Cost per Trip Match 10, City otrTemecula - Impact Fee Study Streets and Tral~c Contol See the Implementation Chapter for recommendations on adoption of fees to facili- tate this approach. PRO]£CTED REVENUE Finally, the impact fees from Table 5.3 can be applied to future devel6pment to project the total revenue that would be generated by those fees through buildout of the study area, assuming future development occurs as projected in Chapter 2 of this study. It is important to note that most future development in Temecula is covered by existing development agreements or vesting tentative subdivision maps, and would not be subject to the fees calculated in this study. Those devel- opments may have agreed to dedicate land and construct improvements, or will pay fees in effect at an earlier time. Table 5.4 shows projected revenue that would be generated if fees calculated in this chapter are applied to future devel- opment not subject to existing development agreements or vesting tentative maps. Table 5.4 Projected Revenue - Street Impact Fees Development Dev Future Impact Fee per Projected Type Units ~ Units 2 Unit a Revenue 4 Residential, Detached DU 2,163 ' $ 1,563.80 $ 3,382,495 Residential, Attached DU 744 $ 1,094.66 $ 814,426 Professional Office Acre 229.0 $ 62,551.91 $ 14,324,388 Business Park/Light Ind Acre 554.5 $ 37,531.15 $ 20,809,520 Commercial, Retail Acre 160.2 $ 78,189.89 $ 12,525,238 Commercial, Highway Acre 67.0 $ 78,189.89 $ 5,238,723 Commercial, Service Acre 129.1 $ 54,732.92 $ 7,063,284 Public/Institutional Acre 84.0 $ 15~637.98 $ 173131903 Total $ 65~4711976 t DU = dwelling unit 2 Future development potentially subject to these fees s See Table 5.3 4 Projected revenue = future units of development x impact fee per unit of development The costs USed in this report are given in current dollars. To keep pace with chang- ing price levels, the fees calculated above should be indexed, or adjusted annually for inflation. See the Implementation Chapter for more on indexing of fees. In the event that developers construct any of the improvements tised as the basis for these imPact fees, the cost of that right-of-way and/or construction should be cred- ited against the traffic impact fees charged to that project. ~ !0, 2003 1~u~411S Page ~-~ CI~ of Tern~ula - Impact Fee Study Libraries CHAPTER 6 LIBRARIES This chapter addresses libraries needed to serve future development in Temecula. Information on library facilities was obtained from the 2002 Temecula Public Li- brary Needs Assessment and from the Temecula Community Services Department. The existing Temecula branch library is owned and operated by the Riverside County Library System. At present, Temecula is underserved in terms of the both size of the existing branch library and its location at the north end of the City. Temecula plans to build three more libraries in the future--a main Temecula li- brary and two more branches. However, the impact fee analysis is based on the ex- isting ratio of library facilities and materials to population. SERVICE AREA The service area for the impact fee analysis is the existing City, which is the study area defined in Chapter 2 of this report. (The existing service area for the Temec- ula branch library extends beyond the City, and that fact must be recognized in cal- culating the existing level of service, below.) The facilities to be constructed with impact fees will serve the entire community and library impact fees will be calcu- lated on a citywide basis and applied to new development in all parts of the City. METHODOLOGY This chapter calculates impact fees using the standard-based method discussed in Chapter 1. Standard-based fees are open-ended. Fees calculated in this chapter are based on a ratio of facilities to users and do not depend on assumptions about the ultimate limits of development in the City. DEMAND I/APJABLE Virtually all local governments define the need for libraries as a function of popula- tion, and that is the case in Temecula. Consequently, population is used as the de- mand variable in calculating impact fees for these facilities. Because the fees are population-driven, they apply only to residential development. LEVEL OF SERVICE. The Temecula General Plan references a Riverside County Library System standard of 0.5 square feet of library space and 1.2 volumes of library materials per capita as the desired library standard for Temecula. However, the calculation of impact fees for libraries in this chapter is based on the existing ratio of library facility space and Aqarc. h I0, ,2003 A4AXIA4~ Page S-I Cl(y o£1'erac~:ula - Impact Fee Study Libraries materials to population. Because the existing Temecula branch library serves some population outside the City, that population must be included in calculating the ex- isting level of service. Table 6.1 shows the calculation of service levels for existing library building space and materials, relative to the estimated population of the. ser- vice area, including population outside Temecula in the unincorporated portion of Riverside County served by the Temecula branch library. (The City of Murrieta has its own City library, so the population of Murrieta is not included in the service area population.) Table 6.1 also shows additional library space to be constructed by the City with funds currently available from impact fees and money pledged by Riverside County and Friends of the Library. Table 6.1 Existing Ratio of Library Building Area and Materials to Population Existing Service Area Units per Cost Component Units Units ~ Population 2 Capita Existing Temecula Library Space Square Feet 15,300 79,927 0.19 Cit~-funded Additional Library Space Square Feet 18~663 75~927 0.25 Subtotal Library Space 0.44 Existin$ Collection ]Volumes [ 91,000 [ 79,927 1.14 "Funded Additional Library Space" is additional space that will be constructed with available impact fee funds and pledged funds from Riverside County and Friends of the Library. Available funds = $3,972,000. Assumed cost of facilities = $320.00 per square foot including land. For existing facilities, service area population = City population (see Table 2.2) plus estimated 4000 residents of the unincorporated service area. For City- funded additional facilities, the service area population = the City population. Units per capita = existing units / service area population PER-CAPITA COST Table 6.2 shows the per-capita cost to provide library facilities and materials at the current level of service to serve future development. Those per capita costs are based on the per capita service levels from Table 6.1. The per-capita costs will be used to calculate impact fees for library facilities and materials. 10, 2003 t~lAXIMtlS Page 6-2 CiO* o£ TemecuIa - Impact Fee Study LIl~ra#e$ Table 6.2 Cost per Capita - Library Facilities and Materials Cost Existing Units Cost per Cost per Component Units per Capita 1 Unit 2 Capita 3 Library Space Square Feet 0.44 $320.00 $139.91 Library Materials Volumes 1.14 $35.00 $39.85 Total Cost per Capita $179.76 See Table 6.1 Cost per square foot based on $225 for construction, $33 for land, $25 for site development and $35 for furniture, fixtures and equipment. Cost per volume of new materials includes purchase and processing. Cost per capita = cost per unit x units per capita. IMPACT FEE CALCULATION Below, the per-capita cost from Table 6.2 is converted into impact fees per unit of development, by development type, for library facilities and materials. To calculate fees per unit of development, the per-capita cost is multiplied by the average num- ber of people per dwelling unit for each type of residential development. Table 6.3 shows the resulting impact fees per unit of development. Table 6.3 Impact Fees per Unit of Development - Library Facilities and Materials Development Dev Population Cost Impact Fee Type Units ~ per Unit 2 per Capita 3 per Unit a Residential, Detached DU 3.35 $179.76 $602.19 Residential~ Attached DU 2.40 $179.76 $431.42 DU = dwelling unit See Table 2.1 gee Table 6.2 Impact fee per unit = population per unit x cost per capita PRO]EC lED REVENUE Finally, the impact fees from Table 6.3 can be applied to future development to project the total revenue that would be generated by those fees through buildnut of the study area, assuming future development occurs as projected in Chapter 2 of this study. It is important to note that most future development in Temecula is covered by existing development agreements or vesting tentative subdivision maps, Page 6-3 Ci{y o£ TernecuIa - Impact Fee Study Hbrattea and would not be subject to the fees calculated in this study. Those developments will pay fees in effect at an earlier time. Table 6.4 shows the projected revenue that would be generated if the fees calcu- lated in this chapter are applied to future residential development not subject to ex- isting development agreements or vesting tentative maps. Table 6.4 Projected Revenue - Fees for Library Facilities and Materials Development Dev Future Impact Fee Projected Type Units ~ Units 2 per Unit 3 Revenue 4 Residential, Detached DU 2,163 $602.19 $1,302,537 ResidentialI Attached DU 744 $431.42 $ 3201976 Total $11623~513 DU = dwelling unit Future residential development potentially subject to these fees See Table 6.3 Projected revenue = future units x impact fee per unit All costs used in this report are given in current dollars. To keep pace with chang- ing price levels, the fees calculated above should be adjusted annually for inflation. See the Implementation Chapter for more on indexing of fees. A4arch 10, 2003 tlqAXI~IIJS Page 8-4 O(y o£Temecula - Impact F~e Study Corporate Facilities CHAPTER 7 CORPORATE FA CIL1TIES This chapter addresses corporate facilities (City Hall and maintenance facilities) needed to serve future development in Temecula. Information on corporate facili- ties was obtained from the Temecula Finance Department. SERVICE AREA The service area for the impact fee analysis is the existing City, which is the study area defined in Chapter 2 of this report. Facilities needed to serve new develop- ment in areas annexed in the future will be addressed in development agreements. METHODOLOGY This chapter calculates impact fees using the standard-based method discussed in Chapter 1. Standard-based fees are open-ended. They are based on a ratio of fa- cilities to users and do not depend on assumptions about the ultimate limits of de- velopment in the City. All fees in this report are calculated in current dollars and should be adjusted annually to reflect changes in facility costs. DEA4AND VARIABLE Because corporate facilities support a wide range of City functions, no single attrib- ute of development is particularly useful in representing the impact of development on the need for such facilities. This chapter uses one demand variable for City Hall facilities and two separate demand variables for street and park maintenance facili- ties, as discussed below. City Hall Demand Variable. The 1996 development impact fee study prepared for Temecula by David M. Griffith & Associates (now MAXIMUS) included a detailed analysis of City Hall space assignments and the relationship of various line and support functions to development. In the current study, the impact factors from the 1996 study have been converted into acreage weighting factors that represent the relative impacts of one-acre various types of development on the need for City Hall space. See Chapter 2 for details. Maintenance Facility Demand Variables. The City's maintenance facility is used primarily to support two types of activities--street maintenance and park mainte- nance. The analysis in this chapter considers separately the portions of the mainte- nance facility used for those activities. Peak hour trip generation, the demand variable for streets, is also used to represent the impact of development on the street maintenance portion of the maintenance facility. Population, the demand A4am_fi 10. 2003 A4AXIA4U$ ' variable used for parks, is also used to represent the impact of development on the park maintenance portion of the maintenance facility. LEVEL OF SERVICE No numerical level-of-service standards have been adopted by the City for corpo- rate facilities. This chapter establishes the existing level of service in terms of the relationship between existing facilities and existing demand, and calculates impact fees needed to maintain that level of service as future development occurs. Tables 7.1 shows the City's existing corporate facilities and their estimated re- placement cost. A major portion of the existing Maintenance Building is actually being used as an annex to City Hall because space is not available to house all gen- eral government functions in City Hall itself. For purposes of this analysis, space in the Maintenance Facility being used as a City Hall Annex will be treated as City Hall space. Table 7.1 also shows $1.2 million in cash from impact fee revenue that is dedicated to future corporate facilities. TabLe 7.1 Existing Corporate Facilities Existing Est Bldg Repl Total Bldg Est Land Facility Square Feet ~ Cost/Sq Ft 2 Repl Cost Value ~ Total CityHall 30,095 $300.00 $ 9,028~500 $ 900,000 $ 9,928,500 Maintenance Bldg Admin Space 12,798 $150.00 $ 1,919,700 $ 1,919,700 Cash on Hand for Future Facilities $ 1~200~000 Subtotal City Hall Facilities 427893 $ 10~948~200 $ 900~000 $13~048~200 Street Maintenance Facilities 2,136 $200.00 $ 427,200 $ 165,802 $ 593,002 Park Maintenance Facilities 2~373 $200.00 $ 474?600 $ 184~198 $ 658~798 Subtotal Maintenance Facilities 4fi09 $ 901~800 $ 350~000 $ 1~251fl00 Totals 47~402 $ 11,850~000 $1~250~000 $14,300,000 Building area provided by the Temeanla Finance Department F_~'timated replacement cost per sq. ft. includes design, construction, FFE, and all project costs except land Land value esumated bi' the City of Temecula Redevelopment Agency Table 7.2 on the next page shows the existing relationship between facilities and demand for City Hall space. For convenience, that relationship is shown in terms of the replacement cost of facilities. As discussed above, the demand variable used in this analysis for City Hall is weighted acreage. March 10, 2003 AffAXIA4LIS Page 7-2 Clt~ o£Temecula olm, oact Fee Stud. v Corporate F-~llltlez Table 7.2 Cost per Weighted Acre - Existing City Hall Facilities Total [ Weighted Acres [ Cost per Facility Cost ~[ Existinl~ Der z I Weishted Acre $13~048~200 11~047 $1~181.19 See Table 7.1 See Table 2.2 Cost per weighted acre = total facility cost/weighted acres of existing development Table 7.3 shows the relationship between existing street maintenance facilities and demand measured in terms of peak hour trips generated by existing development. Table 7.3 Cost per Peak Hour Trip - Street Maintenance Facilities Total I Peak Hr Trips Facihty Cost t [ Existin~ Dev 2 $593~002 92~766 Cost per Pk Hr Trip $6.39 See Table 7.1 See Table 2.2 Cost per peak hout trip = total facility cost / peak hoar trips generated by existing development Table 7.4 shows the relationship between existing park maintenance facilities and demand measured in terms of existing population. Table 7.4 Cost per Capita - Park Maintenance Facilities I Total ] Existing I Cost per Facility Cost 1 Population z Capita s $658~798 75~927 $8.68 See Table 7.1 See Table 2.2 Cost per Capita = total facility cost / existing population ~ A4arch lO, 2003 ~U$ Paffe 7-3 City o£ Ternocula - Impact Fee Study Corporate £~dlltle$ IMPACT FEE CALCULATION In the following three tables, the cost per unit of demand from each of the preced- ing three tables is converted into a cost per unit of development for one component of corporate facilities. Table 7.5 shows that conversion for city hall facilities. Table 7.5 Impact Fees per Unit of Development - City Hall Facilities Development Dev Wtd Acres Cost per Fee per Type Units ~ per Unit 2 Wtd Acre 3 Unit 4 Residential, Detached DU 0.28 $1,181.19 $ 336.20 Residential, Attached DU 0.15 $1,181.19 $ 173.98 ProfessionalOffice Acre 2.06 $1,181.19 $ 2,434.75 Business Park/Light Ind Acre 1.73 $1,181.19 $ 2,049.00 Commercial, Retail Acre 3.72 $1,181.19 $ 4,397.79 Commercial, Highway Acre 3.72 $1,181.19 $ 4,397.79 Commercial, Service Acre 2.14 $1,181.19 $ 2,528.25 Public/Institutional Acre 0.50 $1~181.19 $ 590.59 t DU = dwelling unit 2 Weighted acres per acre x units per acre. See Table 2.1 3 See Table 7.2 4 Fee per unit of development = weighted acres per acre x cost per weighted acre / units per acre Table 7.6 shows the fee per unit of development for the street maintenance portion of the maintenance facility. Table 7.6 Impact Fees per Unit of Development - Street Maintenance Facilities Development Der Peak Trips Cost per Fee per Type Units: per Unit 2 Trip 3 Unit 4 Residential, Detached DU 1.00 $6.39 $ 6.39 Residential, Attached DU 0.70 $6.39 $ 4.47 Professional Office Acre 40.00 $6.39 $ 255.70 Business Park/Light Ind Acre 24.00 $6.39 $ 153.42 Commercial~ Retail Acre 50.00 $6.39 $ 319.62 Commercial, Highway Acre 50.00 $6.39 $ 319.62 Commercial, Service Acre 35.00 $6.39 $ 223.74 Public/Institutional Acre 10.00 $6.39 $ 63.92 l DU = dwelling unit 2 See Table 2.1 ~ See Table 7.3 4 Fee per unit of development = peak hoar trips per unit x cost per peak hr trip A4,tr~ 10, 2003 1t4AXI~I.Z~ P,,~e C/O, o£Temecu/a - Impact Fee Study Corl~ra~e Facilities Table 7.7 shows the fee per unit of development for the park maintenance portion of the maintenance facility. Table 7.7 Impact Fees per Unit of Development - Park Maintenance Facilities Development Dev Population Cost per Fee per Type Units ~ per Unit: Capita 3 Unit Residential, Detached DU 3.35 $8.68 $ 29.07 Residential, Attached DU 2.40 $8.68 $ 20.82 Professional Office Acre 0.00 $8.68 $ Business Park/Light lnd Acre 0.00 $8.68 $ Commercial, Retail Acre 0.00 $8.68 Commercial, Highway Acre 0.00 $8.68 $ Commercial, Service Acre 0.00 $8.68 $ Public/Institutional Acre 0.00 $8.68 $ I DU = dwelling unit 2 See Table 2.1 a See Table 7.4 4 Fee per unit of development = population per unit x cost per capita Table 7.8 sums the fees per unit of development from the previous three tables to arrive at the total fee per unit of development for all corporate facilities. Table 7.8 Impact Fees per Unit of Development - Total Development Dev Total Fee KSF Fee per Type Units I per Unit: per Acre s KSF s Residential, Detached DU $ 371.66 N/A N/A Residential, Attached DU $ 199.28 N/A N/A Professional Office Acre $ 2,690.45 17.42 $ 154.41 Business ParldLight Ind Acre $ 2,202.42 17.42 $ 126.40 Commercial, Retail Acre $ 4,717.42 13.07 $ 360.99 Commercial, Highway Acre $ 4,717.42 13.07 $ 360.99 Commercial, Service Acre $ 2,751.98 13.07 $ 210.59 Public/Institutional Acre $ 654.52 10.89 $ 60.10 DU = dwelling unit Sum of fees per unit from Tables 7.5, 7.6, and 7.7 1,000 sq. ft. of building area (KSF) per acre for non-residential development types. See Table 2.1 For comparison with existing fees, non-residential fees are converted from an amount per acre into an amount per KSF ~ 10, 2003 MAXIMUS P, we CIO, o£T~rnecula - Impact Fee Study Corporate Fadll#~s PROJECTED REVENUE Finally, the impact fees from Table 7.8 can be applied to furore development to project the total revenue that would be generated by those fees through buildout of the study area, assuming future development occurs as projected in Chapter 2 of this study. It is important to note that most future development in Temecula is covered by existing development agreements or vesting tentative subdivision maps, and would not be subject to the fees calculated in this study. Those developments will pay fees in effect at an earlier time. Table 7.9 shows projected revenue that would be generated if fees calculated in this chapter are applied to future develop- ment not subject to existing development agreements or vesting tentative maps. Table 7.9 Projected Revenue - Fees fo~ Corporate Facilities Development Dev Future Impact Fee Projected Type Units ~ Der Units: per Unit 3 Revenue 4 Residential, Detached DU 2,163 $ 371.66 $ 803,904 Residential, Attached DU 744 $ 199.28 $ 148,265 Professional Office Acre 229.0 $ 2,690.45 $ 616,113 Business Park/Light Ind Acre 554.5 $ 2,202.42 $ 1,221,155 Commercial, Retail Acre 160.2 $ 4,717.42 $ 755,683 Commercial, Highway Acre 67.0 $ 4,717.42 $ 316,067 Commercial, Service Acre 129.1 $ 2,751.98 $ 355,143 Public/Institutional Acre 84.0 $ 654.52 $ 54,993 Total $ 4~271~322 DU = dwelling unit; KSF -- 1,000 square feet of building area Future residential development potentially subject to these fees See Table 7.8 Projected revenue -- future development units x impact fee per unit All costs used in this report are given in current dollars. To keep pace with chang- ing price levels, the fees calculated above should be adjusted annually for inflation. See the Implementation Chapter for more on indexing of fees. .Match I0, 2003 ~VIA.~M~ Page 7-6 CRy o£ Temecula - Iml~act Fee Study Rre Deferment £adlltlea and Equipment CHAPTER 8 FIRE FA CILITIES AND EQUIPMENT This chapter addresses impact fees for fire protection facilities and equipment needed to serve future development in Temecula. The Riverside County Fire De- partment (RCFD) provides fire protection and emergency medical first responder services to the City through a cooperative agreement. RCFD also serves unincor- porated portions of Riverside County surrounding Temecula. RCFD currently staffs four fire stations in Temecula: Station 12 on Mercedes Street in Old Town, Station 73 on Enterprise Circle West, Station 84 on Pauba Road, and temporary Station 92 in the Wolf Valley area. Station 83 on Winchester Road north of Temecula also serves a portion of the City at present. Station 12 (which is owned by the State) houses one municipal engine staffed by three firefighters to serve the City. (The Department also operates two state- funded brush engines from this station to respond to wild land fires in the area.) Station 73 houses an engine, a ladder truck, and a paramedic unit, with a total of nine staff. Station 83 and temporary Station 92 each house an engine and three staff. Station 84 houses one engine and a paramedic unit with five staff. As is the case for most fire departments, the bulk of the calls received by RCFD in Temecula are medical calls. Fire calls make up less than twenty percent of total re- sponses. SERVICE AREA The study area addressed in this analysis is the existing City. The entire study area will be treated as a single service area for purposes of calculating fire impact fees, because fire protection and emergency medical services are provided to the entire City by an integrated system of facilities, equipment, and personnel. Although in- dividual fire stations are assigned first-due responsibility for designated areas, de- velopment in any part of the City depends on the whole system for protection. While each fire station houses at least one engine company, more specialized equipment such as ladder trucks, are not available in every station. A standard first alarm response to a fire call requires more than one company at current staffing levels. Furthermore, when one company is called out, other companies may have to move to provide coverage in case of additional calls. For all of those reasons, impact fees for Fire Depathnent facilities and equipment are calculated on a dty- wide basis. ~ 10, 2005 City o£Ternecula - Impact Fee $~udy Fire Department FacllRles and Equipment Because of uncertainty regarding future annexations, the City's sphere of influence is not included in this analysis. The City anticipates that the impact of such an- nexations, if they occur, would be addressed in development agreements. METHODOLOGY This chapter calculates impact fees for Fire Department facilities and equipment using the plan-based method discussed in Chapter 1. Plan-based fees are closed- ended, meaning that they depend on assumptions about both future facilities and future development in the study area. Unlike some other plan-based calculations in this report, the fire impact fees are calculated on a "buy-in" basis. That is, the fees represent future development's proportionate share of all existing and future facili- ties and equipment needs. That approach is used here because fire protection is supported by an entire system of facilities and equipment, and it is not possible to identify certain facilities or equipment that serve future development as opposed to existing development. Using that approach ensures that both existing and future development share in capital costs for fire protection in proportion to the demand they create. These impact fees are calculated in current dollars and should be ad- justed annually to reflect changes in facility costs. DEMAND VARIABLE In this chapter, demand for Fire Department services is measured in terms of devel- oped acreage. Because the first-response coverage provided from a fire station is limited by the distance that can be traveled within response time standards, the number of fire stations needed to serve the City is determined primarily by the size of the area to be served. Logically, then, the attribute of development that is most significant in determining facility needs is site area. Impact fees calculated in this chapter are based on the net acreage of a development project. LEVEL OF SERVICE Fire station locations are determined by the need to meet certain response time standards. The City's response time standard for fire and medical emergency calls is 5 minutes. FA CIL ITY AND EQUIPA4ENT NEEDS In order to satisfy the desired response' time standard, Temecula will need to con- struct several new fire stations as it grows. One existing fire station (Station 92) is currently housed in temporary quarters at a temporary location. A permanent re- placement station to be constructed by a developer under a development agreement is in the works. In addition, RCFD expects that Station 12, an old state-owned fire ~ 10, 200~, AfAX]~I.I$ P4ffeS-2 CI(y o£ Tern~cula - Impact Fee Study ~7re Department l~acllltles and Equipment station currently used by RCFD in Old Town Temecula will be relocated out of the City in the next few years. That station will have to be replaced. Table 8.1 lists existing and future fire stations needed to serve existing and future development within the City. All costs in Table 8.1 are in current dollars, so de- preciated replacement cost is shown for existing stations and estimated construction cost in current dollars is shown for future stations. Table 8.1 shows four existing stations, including two that are fully funded but not yet constructed. The replacement for Station 12 is shown as a future facility, as are two other new fire stations and a training facility to be shared and jointly funded by Temecula and the Riverside County Fire Department. Table 8.1 Fire Department Facilities - Existing and Future Existing or Funded Constt; Bldg Rcpl Useful Bids Depr Land I Total Facilities Date Cost I Life (Yrsl Repl Cost z Value 3 ! Repl Value 4 Station 73 1988 $ 2,500,000 50 $1,800,000 $360,000 $2,160,000 Station 84 1996 $ 2,500,000 50 $2,200,000 $250,000 $2,450,000 Permanent Station 92 (Wolf Ct) s 2004 $ 2,800,000 50 $2,800,000 $250,000 $3,050,00(] Rofipaufih Station {City Shace/a 2004 $116001000 S0 $11600~000 $2501000 $11850~00(] Subtotals $914001000 $814001000 $111101000 $91510~00(] Future Constr Est Bids Est Land Est Total Facilities Date Cost ? CoSt s Cost Station 12 Replacement 2008 $ 2,800,000 $300,000 $3,100,000 ~ast End Station (City Share} 9 2006 $1,400,000 $150,000 $1,~50,000 Promenade Station 2009 $ 2,800,000 $300,000 $3,100,000 training Center (City Share) to 2009 ~ $115001000 $3501000 $118501000 Subtotals $815001000 $111001000 $916001000 Totals $171900100(] $2~2101000 $1911101000 Source: Temecula Fire Department Replacement cost of existing buildings based on current co~t of similar facilities Existing building values deprecated using straight line method. Estimated current land value. Total cost = sum of building cost and land cost. Planned Station 92 is fully funded under a Development Agreement. Planned Station at Roripaugh project i~ fully funded by a combination of City DIF funds, developer contribution and Riverside County Fire Department Contribution. Amounts shown do not include RCFD share. Estimated building construction costs at current price levels. Estimated land costs at current price levels. The planned East End station is expected to be funded joindy by the City and the Riverside County Fire Dept. io City share of future training center to be constructed joindy with Riverside County Irate Department. Includes tralnln~ props. A4~c.h lO, 2003 A'IAXIA4US P, We 8-3 City o£ Temecula - Impact tee Study Fire Oeparlment Facilities and Equipment Table 8.2, on the next page, lists existing and future firefighting apparatus and other vehicles needed to serve the City's fire protection needs. As with the facilities in Table 8.1 existing apparatus is shown at depreciated replacement value. Esti- mated acquisition cost in current dollars is shown for future apparatus. Some of the apparatus shown is fully depreciated. Table 8.2 Fire Department Equipment - Existing and Future Existing Purchase Replacement Service Depreciated Vehicle/Apparatus Date Cost ~ Life Ors} z Value 3 Truck 73 1991 $ 800,000 20 $ 360,000 Engine 73 1993 $ 350,000 15 $ 140,000 MS-73 (Paramedic Squad) 2003 $ 150,000 10 $ 165,000 Engine 84 1993 $ 350,000 15 $ 140,000 Engine 84A 1978 $ 350,000 15 $ MS-84R (Paramedic Squad) 1999 $ 150,000 10 $ 105,000 MS-84 (Paramedic Squad) 2002 $ 150,000 10 $ 150,000 Engine 92 1993 $ 350,000 15 $ 140,000 Engine 12 1993 $ 350,000 15 $ 140,000 Ensine 12R 1985 $ 350~000 15 $ 'Subtotal $ 3~3507000 $1~060~000 Future Vehicle/ Purchase Estimated Apparatus Needs Date Cost ~ Fire Chiefs Vehicle 2003 $ 40,000 Prevention Specialist Vehicle 2003 $ 20,000 Planned Station Engine 2004 $ 350,000 Planned Station Squad 2004 $ 200,000 Planned Station Engine 2004 $ 350,000 Planned Station Engine 2009 $ 350,000 Reserve Engine 2004 $ 350,000 Reserve Engine 2008 $ 400~000 Subtotal $2~0607000 Total $3~120~000 Source: Temecula Fire Department Estimated current replacement cost of apparatus Estimated useful service life of item Depreciated value using straight-line method C057' PER ACRE Table 8.3 on the next page summarizes costs for facilities and apparatus from the previous two tables. It also calculates the cost per net acre for all facilities and ap- paratus needed to serve existing and future development in the City. That per-acre cost is the basis for the impact fees calcu!ated in this chapter. /14arcl~ I0, 200S II/IR~IUS P~ge ,~4 ~lt~ o£ ~'eme~ula - Iml~ct fe~ Study Dm Delaar~ent l~adlltles ~cl Equipment By dividing the cost of all existing and future fire protection facilities and equip- ment in the City by total developable acreage in the City, this analysis allocates fire protection costs to existing and future development on an equivalent basis. To the extent that revenue from these impact fees is not sufficient to fund future facilities, the City will have to turn to other sources of revenue to make up the difference. Table 8.3 Average Cost per Net Acre - Fire Facilities/Apparauts Facilities/Equip City Dev Cost T}'pe Cost 1 Net Acres z Per Acre a Existing Faf:ilities $ 9,510,000 13,458 $ 706.67 Future Facilities $ 9,600,000 13,458 $ 713.36 Existing Apparatus $ 1,060,000 13,458 $ 78.77 Future Apparatus $ 2~060t000 13~458 $ 153.07 Totals $ 22t230~000 13~458 $1~651.87 See Tables 8.1 and 8.2 for faolity and vehicle/apparatus cost Projected net developed acres in City at buildout. See Table 2.4 Cost per net developed acre = total cost / developed net acres IAdPA CT FEE CALCULATION In Table 8.4, on the next page, the cost per acre from Table 8.3 is converted into impact fees per unit of development, by development type. To make that conver- sion, the cost per acre is divided by the number of units per acre for each type of development. Note that, since acres are used as the units of development for all non-residential development types, the per-acre fee is equal to the per-unit fee for non-residential development. For consistency with other chapters in this report; impact fees for residential development are converted to a cost per dwelling unit, based on existing residential densities for each category. In practice, the City could choose to apply this impact fee to residential development on a per-acre basis. ll4mrc~ 10, 200; II4AXI~IU$ P~ge 8-5 City o£ Temecula - Impact Fee Study R~e Department Faclllffe~ and Equipment Table 8.4 Impact Fees per Unit of Development - Fire Facilities and Equipment Development Dev Cost per Units per Impact Fee KSF per Non-Res Fee Type Units ~ Acre z Acre 3 per Unit 4 Acre s per KSF ~ Residential, Detached DU $1,651.87 3.51 $470.17 N/A N/A Residential, Attached DU $1,651.87 7.57 $218.18 N/A N/A Professional Office Acre $1,651.87 1.00 $1,651.87 17.42 $94.80 Business Park/Light Ind Acre $1,651.87 1.00 $1,651.87 17.42 $94.80 Commercial, Retail Acre $1,651.87 1.00 $1,651.87 13.07 $126.41 Commercial, Highway Acre $1,651.87 1.00 $1,651.87 13.07 $126.41 Commercial, Service Acre $1,651.87 1.00 $1,651.87 13.07 $126.41 Public/Institutonal Acre $1~651.87 1.00 $1~651.87 10.89 $151.69 DU = dwelling unit See Table 8.3 See Table 2,1 Impact fee per unit of development -- cost per acre / units per acre 1,000 square fee of building area (KSF) per acre for non-residential development types. See Table 2.1 For comparison with existing fees, non-residential fees are converted from an amount per acre into an amount per KSF ?RO]ECTED REVENUE Finally, the impact fees from Table 8.4 can be applied to furore development to project the total revenue that would be generated by those fees through buildout of the study area, assuming future development occurs as projected in Chapter 2 of this study. It is important to note that most future development in Temecula is covered by existing development agreements or vesting tentative subdivision maps, and would not be subject to the fees calculated in this study. Those developments may have agreed to dedicate land, or will pay fees in effect at an earlier time. Table 8.5 on the next page shows projected revenue that would be generated if fees calcu- lated in this chapter are applied to future development not subject to existing de- velopment agreements or vesting tentative maps. The projected revenue from these fees, as shown in Table 8.5 is substantially less than the total cost of planned future fire protection fadlifies and equipment. It should be noted that some of the revenue from the "Public/Institutional" develop- ment category may not be collected because the City may not impose most impact fees on schools or state or county facilities. The City currently has approximately $650,000 of fire impact fee revenue on hand. Most of that has been committed to facilities shown in this chapter as "funded' and treated as existing. To the extent that any previously collected impact fee revenue remains available, it can be used to ~arch 10, ~003 ~dAdUS Pa~e S-6 make up the shortfall between the cost of future facilities and the revenue gener- ated by these fees. Table 8.5 Projected Revenue - Fire Impact Fees Development Dev Future Impact Fee Projected Type Units ~ Dev Units 2 per Unit ~ Revenue 4 Residential, Detached DU 2,163 $470.17 $1,016,982 Residential, Attached DU 744 $218.18 $162,327 Professional Office Acre 229.0 $1,651.87 $378,278 Business Park/Light Ind Acre 554..$ $1,651.87 $915,894 Commercial, Retail Acre 160.2 $1,651.87 $264,613 Commercial, Highway Acre 67.0 $1,651.87 $110,67.$ Commercial, Service Acre 129.1 $1,651.87 $213,173 Public/Institutional Acre 84.0 $1~651.87 $138~790 $ 3~200~732 DU = dwelling unit Future residential development potentially subject to these fees See Table 8.4 Projected revenue = future development units x impact fee per unit It should be noted that all costs used in this report are given in current dollars. To keep pace with changing price levels, the fees calculated above should be adjusted annually for inflation. See the Implementation Chapter for more on indexing of fees. ~/0, 2005 MA~TA~U$ Pe~'e 8~7 ~y o£ Temecula - Impact Fee $~d.y Police Facllltle~ CI-IAPTER 9 POLICE FAC/LIlIES AND VEHICLES This chapter addresses police facilities and vehicles needed to serve future devel- opment in Temecula. Information on police facilities was obtained from the Te- mecula Police Department. The City of Temecula contraCtS with the Riverside County Sheriff's Department for police services. At present, Sheriff's personnel as- signed to the Temecula Police Department operate out of the Sheriff's Department Southwest Station in Murrieta, north of Temecula. Staffing includes 73 sworn offi- cers and 22 non-sworn employees. SERVICE AREA The service area for the impact fee analysis is the existing City, which is the study area defined in Chapter 2 of this report. Impact fees for police facilities will be cal- culated on a citywide basis and applied to new development in all parts of the exist- ing City. This analysis will address only facilities needed to serve future develop- ment within the existing City. Facilities needed to serve new development in areas annexed in the future will be addressed in development agreements. METHODOLOGY This chapter calculates impact fees using the plan-based method discussed in Chap- ter 1. Plan-based fees are calculated by allocating costs for a set of existing and/or planned facilities to a certain set of land uses. Impact fees are based on the cost of facilities needed to serve future development. DE/VIAND VARIABLE In this chapter, demand for police services is measured by calls for service. De- mand factors representing calls for service per unit of development per year are used to represent demand for each type of development used in this study. See Chapter 2 for a discussion of how those factors were established. The demand factors are used in this analysis to allocate the cost of police facilities, vehicles and equipment between existing and future development and among vari- ous types of development. LEVEL OF SERVICE Like most cities, Temecula has not adopted numerical level-of-service standards for police facilities. However, existing facilities used by the Police Depmiment are at capacity, and additional space will be required to serve the department as it grows ~ IO, 2003 tI4AXIIffUS Pa,~e 9-1 City o£ Temecula - [mlaact Fee Study Poi/ce to keep pace with new development in the City. Temecula plans to construct a new Police substation in the City to augment the space available in the building now oc- cupied by the Department and to house some police services that are location sensi- tive. That facility is planned to increase the department's space in proportion to the projected demand related to future development. The cost of the planned facil- ity is allocated to various types of future development in this chapter, using calls for service--the demand variable identified above. Table 9.1 shows the estimated cost of the planned police substation. Building Size 17~500 Sq Ft Table 9.1 Planned Police Facility Constr Cost 1 Cost 3 Cost $ 4~$00~000 $ 400~000 $ 4~900~000 Cost estimates include design, construction, project administration, site development, perimeter enclosure, and furn., fixtures, and equip. Land cost assumes a 2 acre site at $200,000 per acre COST PER CALL FOR SERVICE Table 9.2 calculates the cost per call for service for the planned police substation. Cost per call for service is calculated by dividing the total cost of the planned facil- ity by the projected total calls for service that facility can support. The facility is planned to serve all future development in the existing City, so the cost is divided by the projected total calls for service from future development at buildout. Table 9.2 Cost per Call for Service - Police Facility Facility Cost ~ for Service z Added Call $4~900~000 13~177 $371.85 See Table 9.1 Projected calls for service added by new development. See Table 2.4 Cost per call for service -- Total facility cost/added calls for service POLICE VEHICLES Patrol cars used by the Temecula Police Department are owned by the Sheriff's De- pa~iment, and the cost of those vehicles is covered by the City's contract with the County. However, the City does own the following vehicles that are assigned to the Police Depamnent: 6 police motorcycles, two all-terrain vehicles, a pickup ~ lO, 2003 ~'IAXI~IU$ Pa, ge .0-:2 CJO; o£ Temecula o Impact Fee Study Police Fadlltles truck, a sports utility vehicle, and a mobile command post trailer. Total replace- ment cost is estimated at $210,000. This study assumes that, as the City grows, it will be necessary to expand that fleet in proportion to the number of additional calls for service generated by new devel- opment. To establish a basis for projecting the need for additional City-owned po- lice vehicles, Table 9.3 calculates the average cost per call for service for the exist- ing fleet. Note that, in this case, that cost is divided by the number of calls gener- ated by existing development, because the current fleet serves only existing devel- opment. Table 9.3 Cost per Call for Service - City-owned Police Vehicles Total Repl Cost $210~000 Existing Calls for Service 23~723 Cost per Call for Service $8.85 Estimated replacement cost of existing city-owned police vehicles See Table 2.2 Cost per call for service -- Total cost / existing calls for service IIVIPA C7' FEE CA £ CU£A TION Table 9.4, on the next page, calculates impact fee per unit of development, by de- velopment type, for police facilities and vehicles, using the combined cost per call figures from the two preceding tables. Table 9.4 also converts non-residential im- pact fees from a per-acre basis into a fee per 1,000 square feet (KSF) of building area, to allow easier comparison with current impact fees. tt,larch lO, 2003 MAXIA4U$ P4ge 9-3 CIO/of Ternecula - impact Fee Study Police t~adlltles Table 9.4 Impact Fees per Unit of Development - Police Facilities and Vehicles Development Der Calls Cost per Impact Fee KgF Fee per Type Units ~ per Unit 2 Call ~ per Unit ~ per Acre s KSF 6 Residential, Detached DU 0.52 $ 380.70 $ 197.97 N/A N/A Residential, Attached DU 0.92 $ 380.70 $ 350.25 N/A N/A Professional Office Acre 2.80 $ 380.70 ' $1,065.97 17.42 $ 61.18 Business Park/Light Ind Acre 2.20 $ 380.70 $ 837.54 17.42 $ 48.07 Commercial, Retail Acre 6.80 $ 380.70 $ 2,588.77 13.07 $198.10 Comm..ercial, Highway Acre 6.80 $ 380.70 $ 2,588.77 13.07 $198.10 Commercial, Service Acre 3.40 $ 380.70 $1,294.39 13.07 $ 99.05 Public/Institutional Acre 4.00 $ 380.70 $1~522.81 10.89 $139.84 DU = dwelling unit See Table 2.1 Sum of cost per call from Tables 9.2 and 9.3 Impact fee per unit of development = calls per unit x cost per call 1,000 sq. ft. of building area (KSF) per acre for non-residential development types. See Table 2.1 For comparison with existing fees, non-residential fees are converted from an amount per acre into an amount per KSF PROJECTED REVENUE Finally, the impact fees from Table 9.4 can be applied to future development to project the total revenue that would be generated by those fees through buildout of the study area, assuming future development occurs as projected in Chapter 2 of this study. It is important to note that most future development in Temecula is covered by existing development agreements or vesting tentative subdivision maps, and would not be subject to the fees calculated in this study. Those developments will pay fees in effect at an earlier time. Table 9.5 on the next page shows pro- jected revenue that would be generated if fees calculated in this chapter are applied to future development not subject to existing development agreements or vesting tentative maps. 2003 A4AXI~IUS P,~e .q~ GOt o£ Temecula - lml~Ct Fee Study Police £adlltles Table 9.5 Projected Revenue - Fees for Police Facilities and Vehicles Development Dev Future Impact Fee Projected Type Units 1 Dev Units z per Unit ~ Revenue 4 Residential, Detached DU 2,163 $197.97 $ 428,198 Residential, Attached DU 744 $350.25 i $ 260,583 Professional Office Acre 229.0 $1,065.97 $ 244,106 Business Park/Light Ind Acre 554.5 $837.54 $ 464,385 Commercial, Retail Acre 160.2 $2,588.77 $ 414,696 Commercial, Highway Acre 67.0 $2,588.77 $ 173,448 ICommercial, Service Acre 129.1 $1,294.39 $ 167,041 Public/Institutional Acre 84.0 $1~522.81 $ 127~946 Total $ 2~280~403 DU = dwelling unit Furore residential development potentially subject to these fees See Table 9.4 Projected revenue -- furore development units x impact fee per unit All costs used in this report are given in current dollars. To keep pace with chang- ing price levels, the fees calculated above should be adjusted annually for inflation. See the Implementation Chapter for more on indexing of fees. ~ lO, 2003 ~lg~dAqU$ Pa~e 9-$ City of Ternecula - Impact Fee Study Implementation CHAPTER 10 IA4PL £A4ENTA TION This chapter of the report contains recommendations for adoption and administra- tion of a development impact fee program based on this study, and for the inter- pretation and application of impact fees recommended herein. Statutory require- ments for the adoption and administration of fees imposed as a condition of devel- opment approval are found in the Mitigation Fee Act (Government Code Sections 66000 et seE.). ADOPIION The form in which development impact fees are adopted, whether by ordinance or resolution, should be determined by the City Attorney. Typically, it is desirable that specific fee amounts be set by resolution to facilitate periodic adjustments. Procedures for adoption of fees subject to the Mitigation Fee Act, including notice and public hearing requirements, are specified in Government Code Section 66016. By statute, those fees do not become effective until 60 days after final action by the governing body. Actions establishing or increasing fees subject to the Mitigation Act require certain findings, as set forth in Government Code Section 66001 and discussed below and in Chapter 1 of this report. Cost per Unit of Service vs. Impact Fee per Unit of Development. In general, im- pact fees recommended in this report are calculated initially in terms of a cost per unit. of service, and then converted into fees per unit of development. Service units are attributes of development (e.g., population, peak hour vehicle trips) that are used to represent demand for various types of public facilities. To implement im- pact fees, it is necessary to estimate how many units of service are required by a certain development project. For the administrative convenience of the City, and to facilitate cost estimating by builders and developers, it is useful to convert the cost per unit of service into impact fees for common units of development, such as dwelling units for residential development or square feet of building area for non- residential development. All impact fee rates calculated in this study have been converted into fees per unit of development for th~ land use categories defined in this study. However, wherever possible, we recommend adopting impact fees in terms of an amount per unit of service rather than as a schedule of fees per unit of develop- ment, because it affords the City flexibility in setting fees for projects whose de- mand characteristics differ substantially from the assumptions used in this study regarding demand, per unit of development. ~ 10, 2005 A~AXIA~US P~Ke 10-1 CI~ of Ternecula - Impact Fee Stud5, Implementation ADAdlNISTRA TION Several requirements of the California Mitigation Fee Act (Government Code Sec- tions 66000 et seq.) address the administration of impact fee programs, including collection and accounth3g procedures, refunds, updates and reporting. References to code sections in the following paragraphs pertain to the California Government Code. Imposition of Fees. Section 66001 of The Mitigation Fee Act states that, "in any action establishing, increasing, or imposing a fee as a condition of approval of a de- .velopment project by a local agency on or after January 1, 1989, the local agency shall do all of the following:" Identify the purpose of the fee; Identify the use to which the fee is to be put; and Determine how there is a reasonable relationship between: a. The use of the fee and the type of development on which it is imposed; bo The need for the public facility and the type of development on which the fee is imposed Section 66001 also requires that: "In any action imposing a fee as a condition of approval of a development project by a local agency on or after January 1, 1989, the local agency shall determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or the portion of the public fa- cility attributable to the development on which the fee is imposed." Note that items 1 through 3 above must be included in findings supporting the es- tablishment or increase of the fees, and that whenever the fee is imposed on a par- ticular project, the City must meet all of those requirements plus the further re- quirement regarding the relationship between the amount of the fee and the cost of facilities attributable to the project on which the fee is imposed. The following findings are suggested to satisfy those requirements of The Mitiga- tion Fee Act: 1. The City Council of the City of Temecula finds that the purpose of these impact fees is to prevent a deterioration in the quality of public services to residents and businesses in the City of Temecula as a result of new develop- ment by requiring new development to bear a portion of the cost of addi- tional capital assets needed to meet its service needs. 2003 A4AXll~U$ Pa~e 10-2 CJ~y o£ Temecula -impact Fee Study knplementatlon e The City Council of the City of Temecula finds that revenue from these im- pact fees will be used to construct facilities and acquire other capital assets identified in the 2003 Impact Fee Study prepared for the City by MAXI- MUS, Inc.l Based on analysis presented in the 2003 Impact Fee Study prepared by MAXIMUS, Inc., the City Council of the City of Temecula finds that there is a reasonable relationship between: bo The use of the fee and the development type on which it is im- posed, in that fees are proportional to the impacts of develop- ment and will be used only to pay for facilities needed to ~erve new development; The need for the facility and the type of development on which the fee is imposed, in that the fee calculations are based on the demand for capital facilities created by new development; and The amount of the fee and the facility cost attributable to the de- velopment project, in that the fees are calculated by allocating fa- cility costs in proportion to the impacts created by new develop- mei~t. In addition, Section 66006, as amended by SB 1693, provides that a local agency, at the time it imposes a fee for public improvements on a specific development pro- ject, "... shall identify the public improvement that the fee will be used to finance." Although that language can be interpreted as requiring the City to identify a spe- cific facility, common practice is to identify the type of improvement the fee will be used to finance, and to refer to the specific improvements identified in this study. Collection of Fees. Section 66007, provides that a local agency shall not require payment of fees by developers of residential projects prior to the date of final in- spection, or issuance of a certificate of occupancy, whichever occurs first. How- ever, "utility service fees" (not defined) may be collected upon application for utility service. In a residential development project of more than one dwelling unit, the agency may choose to collect fees either for individual units or for phases upon fi- nal inspection, or for the entire project upon final inspection of the first dwelling unit completed. According to Gov t Code §66001, the use of the fee may be specified m a capital improvement plan, the General Plan, Or other public documents that identity the public facilities for which the fee is charged. We recommend that this study bc designated as thc source of that information. ,t~atch lO, 2003 AdAXI~US Pete Ot~ o£ Temecula -Impact Fee Study Implementation An important exception allows fees to be collected at an earlier time if they will be used to reimburse the agency for expenditures previously made, or for improve- ments or facilities for which money has been appropriated. The agency must also have adopted a construction schedule or plan for the improvement. Statutory re- strictions on the time at which fees may be collected do not apply to non- residential development. In cases where the fees are not collected upon issuance of building permits, Section 66007 provides that the city may require the property owner to execute a contract to pay the fee, and to record that contract as a lien against the property until the fees are paid. Impact Fee Exemptions. In the event that a development project is found to have no impact on facilities for which impact fees are charged, such project must be ex- empted from the fees. Impact Fee Waivers. In some cases, the City may desire to waive impact fees that would otherwise apply to a project to promote goals such as affordable housing or economic development. Such waivers are not recommended, and if granted may not result in increased costs to other development projects. They are allowable only if the City offsets the revenue lost as a result of the waiver from other sources of revenue. Credit for Improvements provided by Devdopers. If the City requires a developer, as a condition of project approval, to construct facilities or improvements for which impact fees have been, or will be, charged, the impact fee imposed on that development project for that type of facility must be adjusted to reflect a credit for the cost of the facilities or improvements constructed by the developer. Of course, this requirement does not apply to any facilities constructed under a development agreement. In the event a developer offers to dedicate land or construct improvements in lieu of paying impact fees, the City has the discretion to accept or reject such offers. If impact fee credits provided in exchange for such consideration would exceed the amount of the fees that would otherwise have been imposed on such developer(s), the City may wish to execute a reimbursement agreement so that the excess credits are not paid until impact fees are collected from other benefiting development. Credit for Existing Devdopment. If a project involves replacement, redevelopment or intensification of previously existing development, impact fees should be applied only to the portion of the project which represents a net increase in demand for City fadlities, as measured by the demand variables used in this study. Since resi- dential service demand is normally estimated on the basis of demand per dwelling Unit, an addition to a single family d',4elling:unit typically would not be subject to ClO~' o£7'emecula - impact Fee Study implementation an impact fee if it does not increase the number of dwelling units in the structure. In any project that results in a net increase in the number of dwelling units, the added units would be subject to impact fees. A similar approach can be used for non-residential development. Earmarking of Fee Revenue. Section 66006 mandates that fees be deposited "with other fees for the improvement" in a separate capital facilities account or fund in a manner to avoid any commingling of the fees with other revenues and funds of the local agency, except for temporary investments. Fees must be expended solely for the purpose for which they were collected. Interest earned on the fee revenues must also be placed in the capital account and used for the same purpose. The language of the law is not clear as to whether depositing fees "with other fees for the improvement" refers to a specific capital improvement or a class of im- provements (e.g., street improvements). We are not aware of any city that has in- terpreted that language to mean that funds must be segregated by individual pro- jects. As a practical matter, that approach is unworkable because it would mean that no pay-as-you-go project could be constructed until all benefitting develop- ment had paid the fees. Common practice is to maintain separate funds or counts for impact fee revenues by facility category (i.e., streets, park improve- ments), but not for individual projects. We recommend that approach. Reporting. As amended by SB 1693 in 1996, Section 66006 requires that once each year, within 180 days of the close of the fiscal year, the local agency must make available to the public the following information for each separate account established to receive impact fee revenues: 1. The amount of the fee; 2. The beginning and ending balance of the account or fund; 3. The amount of the fees collected and interest earned; Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the per- centage of the cost of the public improvement that was funded with fees; Identification of the approximate date by which the construction of a public improvement will commence, if the City determines sufficient funds have been collected to complete finandng of an incomplete public improvement; A description of each inter-fund transfer or loan made from the account or fund, including interest rates, repayment dates, and a description of the im- provement on which the transfer or loan Will be expended; ,~am..b~2003 IVIA)~'I4U$ P~gel$$ CIO; o£ Temecula -Impact tee Study Implementation 7. The amount of any refunds or allocations made pursuant to Section 66001, paragraphs (e) and (f). That information must be reviewed by the City Council at its next regularly sched- uled public meeting, but not less than 15 days after the statements are made public. Findings and Refunds. Prior to the adoption of Government Code amendments contained in SB 1693, a local agency collecting impact fees was required to expend or commit the fee revenue within five years or make findings to justify a continued need for the money. Otherwise, those funds had to be refunded. SB 1693 changed that requirement in material ways. Now, Section 66001 requires that, for the fifth fiscal year following the first de- posit of any impact fee revenue into an account or fund as required by Section 66006, and every five years thereafter, the local agency shall make all of the follow- ing findings for any fee revenue that remains unexpended, whether committed or uncommitted: 1. Identify the purpose to which the fee will be put; 2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged; 3. Identify all sources and amounts of funding anticipated to complete financ- ing of incomplete improvements for which impact fees are to be used; Designate the approximate dates on which the funding necessary to com- plete finandng of those improvements will be deposited into the appropriate account or fund. Those findings are to be made in conjunction with the annual reports discussed above. If such findings are not made as required by Section 66001, the local agency could be required to refund 'the moneys in the account or fund. Once the agency determines that suffident funds have been collected to complete an incom- plete improvement for which impact fee revenue is to be used, it must, within 180 days of that determination, identify an approximate date by which construction of the public improvement will be commenced. If the agency fails to comply with that requirement, it must refund impact fee revenue in the account according to proce- dures spedfied in the statute. Costs of Implementation. The ongoing COst of implementing the impact fee pro- gram is not included in the fees themselves. Implementation costs would include the staff time involved in applying the fees to specific projects, acCOunting for fee City o£7'emecula -Impact Fee Study Implementation revenues and expenditures, preparing required annual reports, updating the fees, and preparing forms and public information handouts. We recommend that those costs be included in user fees charged to applicants for processing development ap- plications. Annual Update of the Capital Improvement Ham Section 66002 provides that if a local agency adopts a capital improvement plan to identify the use of impact fees, that plan must be adopted and annually updated by a resolution of the governing body at a noticed public hearing. The alternative is to identify improvements in other public documents. We recommend that this study be identified as the source of information on the use of the fees. Indexing of Impact Fee Rates. Fees calculated in this report are stated in current dollars. Fees should be adjusted annually to account for changes in land or con- struction cost. We recommend the Engineering News Record Building Cost Index as the basis for indexing construction costs for future projects. We also recom- mend that the ordinance or resolution establishing the fees include provisions for annual escalation. TRAINING AND PUBLIC INFORMA lION Administering an impact fee program effectively requires considerable preparation and training. It is important that those responsible for applying and collecting the fees, and for explaining them to the public, understand both the details of the fee program and its supporting rationale. Before fees are imposed, a staff training workshop is highly desirable if more than a handful of employees will be involved in collecting or accounting for fees. It is also useful to pay close attention to handouts that provide information to the public regarding impact fees. Impact fees should be dearly distinguished from user fees, such as application and plan review fees, and the purpose and use of particular impact fees should be made dear. Finally, anyone who is responsible for accounting, capital budgeting, or project management for projects involving impact fees must be fully aware of the restric- tions placed on the expenditure of impact fee revenues. The fees recommended in this report are tied to specific improvements and cost estimates. Fees must be ex- pended accordingly and the City must be able to show that funds have been prop- erly expended. RECOVERY OF SI[IDY COST We do not reCOmmend adding an administrative fee to impact fees to cover the costs of administering the impact fee program. Those costs should be included in 114,am_.h 10, 2005 City of ~'ernecula - Impact fee Study ~nplementatlon the processing fees charged to developers and builders. However, it is reasonable for the City to recover the cost of this study through the impact fee program. Once the City Council decides what impact fees to impose, it is a relatively simple matter to calculate an adjustment to cover the cost of the study. Assuming the impact fee study will be updated every five years, the cost of this study could be divided by the amount of revenue projected over the next five years to determine the percentage by which fees should be increased to cover the cost of the study. That percentage typically represents a very small increase in the fees. For example, if the study cost amounts to $30,000 and the City expects to collect an average of $2,000,000 per year in impact fees over the next five years, the fees calculated in this study would be have to be increased by 0.3%, or $3.00 per $1,000, to recover the cost of the study over five years [30,000 / (2,000,000 x 5) = 0,003]. The necessary adjustment should be made before the fees are actually adopted by the City Council, and should be reflected in the adopting resolution. A,larcb ~0, 2003 A,IAXIA. fU~ Pa~e 10-8 Appendix A Street Impro vemen t l~a trix TABLE A-1 MATRIX OF IMPROVEMENTS INCLUDED IN STREET PROJECT COST ESTIMATES CIJRB & LANDSCAPED ADD STREET ROADWAY SIDEWALK GU l IER MEDIAN LANES LIGHTS gUSINESS PARK DRIVE X X 5UI-IERFIELD STAGE ROAD X X X X COMMERCE CENTER DRIVE X X DE PORTOLA ROAD X X X X X DEL RIO X X DIAZ ROAD X X X X X ENTERPRISE CIRCLE WEST X X X OLD TOWN FRONT STREET X X X HIGHWAY 79 SOUTH X EDEDIAH SMITH ROAD X X X X EFFERSON AVENUE X X X LA PAZ X X X X LA SERENA WAY X X X X MARGARITA ROAD X MEADOWS PARKWAY X MORAGA ROAD X NICOIdkS ROAD X X OVEKLAND DRIVE X X X X PAUBA ROAD X X X X RAINBOW CANYON ROAD X X X X RANCHO CALIFORNIA ROAD X X X X X RANCHO VISTA ROAD X X X X RANCHO WAY X X X X RIDER WAY X SANTIAGO ROAD X X X X X SOLANA WAY X VIA MONTEZUMA X X VINCENT MORAGA X X X X VIO RIO TEMECULA X X X X WINCHESTER ROAD X YNEZ ROAD X X X X X REVISED: 3/11/2003