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HomeMy WebLinkAbout15 - Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee ProgramQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report November 12, 2024 Agenda Item No. 15 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Liz Westmoreland, AICP, Principal Planner - 949-644-3234, Westmoreland@newportbeachca.gov TITLE: Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program ABSTRACT: Development impact fees (DIFs) are one-time charges imposed on new development to fund public infrastructure and services needed to accommodate the increased demand created by new development. Governed by the Mitigation Fee Act, DIFs must demonstrate a clear nexus between the fee amount and the impacts of the development. The City of Newport Beach contracted with Willdan Financial Services to prepare a Nexus Study, which evaluated potential fees related to recreation, police, fire, water, and sewer facilities. City staff developed the necessary documentation to implement a DIF program for the City. The proposed program would apply to new residential development planned in the 6t" Cycle Housing Element and new nonresidential development. For nonresidential (commercial, office, and industrial), staff has prepared language that incentivizes neighborhood -serving uses (e.g., grocery stores/retail uses) and tax -generating uses (e.g., visitor accommodations/vehicle sales). For the City Council's consideration are a resolution to adopt the Nexus Study and corresponding fee schedule, as well as ordinances to establish the DIF Program. If approved, the DIF Program would become effective 60 days after adoption of the resolution. RECOMMENDATIONS: a) Conduct a public hearing; b) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2), 15060(c)(3), 15273, and 15378(b)(4) of the CEQA Guidelines, because this action will not result in a physical change to the environment, directly or indirectly; 15-1 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 2 c) Adopt Resolution No. 2024-83, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Development Impact Fee Nexus Study for the City of Newport Beach and Establishing Development Impact Fees for Nonresidential and Residential Development (PA021-127); d) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-30, An Ordinance of the City Council of the City of Newport Beach, California, Repealing and Replacing Chapter 14.33 (Water and Sewer Capital Improvement Fee) to the Newport Beach Municipal Code Authorizing Collection of Development Impact Fees for Water and Sewer Service Facilities, and pass to second reading on December 10, 2024; e) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-31, An Ordinance of the City Council of the City of Newport Beach, California, Adding Chapter 15.43 (Recreation Facilities Improvement Fee) to the Newport Beach Municipal Code Authorizing Collection of Development Impact Fees for Recreation Facilities, and pass to second reading on December 10, 2024; and f) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-32, An Ordinance of the City Council of the City of Newport Beach, California, Adding Chapter 15.44 (Public Safety Development Impact Fee) to the Newport Beach Municipal Code Authorizing Collection of Development Impact Fees for Police and Fire Service Facilities, and pass to second reading on December 10, 2024. DISCUSSION: A development impact fee is a one-time development exaction that can be used to fund City facilities and infrastructure that serve new development. DIFs cannot be used for new personnel but they can be used to fund capacity enhancing projects including the construction of new facilities, or the purchase of land, equipment, or vehicles. Further, DIFs may only be used for the purpose for which they were collected and must be maintained in separate funds. Currently, the City charges DIFs for roadway improvements through the Fair Share Traffic Contribution Ordinance; however, there is no comprehensive DIF program in place to support recreation (e.g., community centers), police, fire, or water facilities besides a nominal fee for new sewer connections. The City also charges in -lieu park dedication fees for new subdivisions (i.e., for -sale residential) through the Quimby Act and Title 19 (Subdivisions) of the Newport Beach Municipal Code (NBMC). In -lieu park dedication fees fund the acquisition of neighborhood and community parkland and recreational facilities serving the identified area of the subdivision that paid the fees. These fees are entirely separate from the proposed Recreation Fee, as they are not authorized through the Mitigation Fee Act and do not fund community centers or other special use facilities. 15-2 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 3 Development Agreements Despite the lack of a DIF program, the City has been able to offset the costs of adequately serving new development through development agreements (DAs). A DA is a contract between the City and a developer that vests development rights in exchange for calculated and/or negotiated public benefits, which can be directed for a specific purpose. Chapter 15.45 (Development Agreements) of the NBMC requires new residential or nonresidential development that includes a legislative amendment (e.g., a general plan amendment or a zoning code amendment) and any of the following to enter into a DA: 1. Development of 50 or more residential units; 2. Residential units in Mariners' Mile; or 3. Nonresidential development in Newport Center, North Ford Area, or Airport Area. Certain other projects must also enter into DAs if they are required by the General Plan Policy. Residential or nonresidential development that is not specifically identified by the General Plan Policy or that does not include a legislative amendment does not require a DA. Implementation of the 6t" Cycle Housing Element Recent State legislation to streamline housing approvals, including the City's mandatory implementation of its 6t" Cycle Housing Element (Housing Element), will serve to largely eliminate the City's ability to require DAs. Upon implementation of Policy Actions 1A through 1 G in the Housing Element, most residential development will not require a legislative amendment and will be exempt from Chapter 15.45 of the NBMC. However, developers may still apply for voluntary DAs to vest their development rights and to allow development over a longer period of time. Based on Policy Actions 1A through 1 G, the City recently adopted the zoning necessary to implement the new Housing Element through the creation of NBMC Section 20.28.025 (Housing Opportunity Overlay Zoning District maps) and Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts). Figure 1 below provides an excerpt of HO-1 Airport Environs Area Housing Opportunity Overlay Map showing potential housing sites in the Airport Area. These sites would not require rezoning to implement a housing project. 15-3 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 4 Legend Housing Opportunity sites Overlay (Coastal Zone) Housing Opportunity sites Overlay .111111 Coastal Zone Boundary O60' maximum O35' maximum Figure 1, HO-1 Airport Environs Area Housing Opportunity Overlay Map Legislative amendments for nonresidential development are relatively rare in the City. These amendments may become even more infrequent as nonresidential development intensity starts to become available when it is replaced by new residential development. For example, in the Airport Area, most of the housing opportunity sites are located on properties with existing office development that could be replaced on or offsite in the future without a legislative amendment pursuant to General Plan Policy LU 4.7 (Redevelopment and Transfer of Development Rights). The City Council will have the authority to transfer this development intensity to other sites within the same statistical area. This future residential and nonresidential growth will create additional demand on the City's infrastructure (water and sewer) and facilities (recreation, fire, police). The proposed DIF program would be an important and effective tool that the City can use to offset the costs associated with new development. 15-4 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 5 At a study session on May 11, 2021, the City Council discussed the issue of DAs losing their viability and identified the need to explore a potential DIF program to help offset the infrastructure needs of new residential development. At the conclusion of the discussion, the City Council directed staff to prepare a nexus study. In late 2021, the City contracted with Willdan Financial Services (Willdan) to perform the necessary analyses. Willdan and City staff prepared a draft of the nexus study, which evaluates potential fees for recreation, police, fire, sewer, and water facilities. Mitigation Fee Act The legal requirements of considering a DIF program are set forth in California Government Code Sections 66000 et. seq., known as the Mitigation Fee Act (MFA). To implement a DIF program, the City must adopt a nexus study that demonstrates a nexus between the impact created by the new development and the amount of the fee relative to the City's planned facilities. The following findings are required per the MFA: 1. Identify the purpose of the fee; 2. Identify how the fee is to be used; 3. Determine how a reasonable relationship exists between the fees' use and the type of development project on which the fee is imposed; and 4. Determine the reasonable relationship between the need for public facilities and the types of development on which the fees are imposed. Assembly Bill (AB) 602 AB 602 became effective on January 1, 2022, and added Section 66016.5 to the Government Code, which set guidelines for impact nexus fee studies among other things. In summary, AB 602 required that a nexus study be adopted every eight years and shall include the following components: 1. The existing level of service for each public facility and the proposed new level of service, including an explanation of why the new level of service is appropriate; 2. Fees imposed on a housing development project must be calculated on a per square foot basis; and 3. Large jurisdictions over 250,000 residents are required to adopt a capital improvement plan as part of the nexus study. Senate Bill (SB) 937 SB 937 was signed by Governor Gavin Newsom on September 19, 2024, and will be effective on January 1, 2025. This bill requires that the payment of DIFs for residential projects be deferred to the certificate of occupancy, rather than the issuance of a building permit. If the developer does not fulfill its obligation to the City, then a lien would be placed on the property. 15-5 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 6 Sheetz v. County of El Dorado In Sheetz v. County of El Dorado, the U.S. Supreme Court held that DIFs are subject to scrutiny under the Taking Clause, by application of a test referred to as "Nollan/Dolan test". Legislatively adopted fees, like DIFs that are authorized through the MFA, were previously considered exempt from this test. The "Nollan/Dolan test" generally requires that exactions have "an essential nexus" to the government's land use interest and must have "rough proportionality" to the development's impact on the land use interest. The Court underscored the necessity for jurisdictions to provide specific evidence that demonstrates how the fees relate to the costs of mitigating development impacts. This ruling reinforces the critical need for development impact fees to comply with essential nexus and rough proportionality requirements ensuring that these fees are transparent, legally defensible, and directly tied to the burdens imposed by new development. Draft Nexus Study The MFA grants authority to collect DIFs to local jurisdictions subject to compliance with all requirements summarized in the previous section. The City's Nexus Study was prepared by Willdan and is attached as Exhibit "A" of Attachment A. The Nexus Study provides a basis for the City to charge DIFs and provides the required findings to comply with State law. To prepare a valid DIF program, the City must consider the growth that may occur within an identified planning timeframe and the scope of public infrastructure improvements that will be required to serve that new development. Establishing a DIF program requires the following steps: 1. Projecting the future growth that will be served; 2. Identifying the current and projected level of service for each public facility; 3. Identifying any additional facilities or improvements that will be needed to accommodate future growth; and 4. Allocating the costs of providing the needed public facilities between the existing and new populations. While some of the projections and assumptions are highlighted below, the Nexus Study includes a detailed discussion of the methodology used to satisfy these requirements (see pages 5-12 of the study). The Nexus Study relied on baseline population data from the California Department of Finance. To estimate future residential population growth, the Nexus Study used the dwelling unit projections identified in the Housing Element. The projections identified an increase of 8,741 dwelling units and 14,099 residents. This growth assumption informs the DIFs applied to residential projects. 15-6 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 7 For nonresidential (i.e., commercial, office, and industrial) DIFs, the Nexus Study relied on data from the Southern California Association of Governments (SCAG), which projected an increase in employment of 1,500 persons; this equates to a buildout of an additional 629,000 square feet of additional nonresidential construction. As part of the Nexus Study, the following fee categories were studied: • Recreation Facilities' • Police Facilities • Fire Facilities • Water Facilities • Sewer Facilities The Nexus Study identifies the maximum fees that the City can charge under the MFA. Staff is recommending that the maximum fees identified in the Nexus Study be adopted, so that any growth will pay its fair share to mitigate the costs of providing additional infrastructure to serve new development. The proposed fee schedule is excerpted below for reference as Table 1. Pursuant to the draft resolution, fees would be established as part of the building permit process and would be due prior to the certificate of occupancy, consistent with SB 937. Table 1: Proposed DIF Program Schedule Fee Category Development Type Residential Feel Commercial Fee' Office Feel Industrial Feel Recreation2 $4.70 - - - Police $1.01 $0.74 $1.14 $0.40 Fire $1.73 $1.82 $2.79 $0.99 Water $0.90 $0.91 $0.62 $0.77 Sewer $0.56 $0.70 $0.51 $0.49 1. All fees are assessed per square foot of gross floor area. 2. Recreation fees do not apply to nonresidential development, as there is no nexus between nonresidential development and the use of recreational facilities. The proposed ordinances to implement the fees are included in this staff report as Attachment B (Water and Sewer), Attachment C (Recreation), and Attachment D (Police and Fire). The proposed NBMC sections to implement the police and fire fees have been consolidated within a single NBMC chapter as they are both related to public safety, and water and sewer have been consolidated within a single NBMC chapter as they both relate to utilities. The proposed fee schedule (Exhibit B of Attachment A) is based on current values. As such, the draft resolution includes an escalator provision to adjust the fees annually for inflation based on the California Construction Cost Index (CCCI). Although the Consumer Price Index (CPI) is a common tool, it tracks the prices of general goods and services where the CCCI is specifically designed to reflect changes in construction costs including materials, labor and equipment. "Recreation Facilities" do not include land dedicated to parks or other standard park improvements such as restrooms, landscaping, benches, water fountains, drainage devices, etc. The Recreation Facilities fee includes special use facilities such as community centers, senior centers, ocean piers, and other substantial facilities that are not standard to parks. 15-7 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 8 City Council Direction and Application of Fees On August 27, 2024, the City Council held a study session at a noticed public meeting to review the results of the Nexus Study and discuss potential implementation of the DIF program. Two members of the public spoke at the public meeting. No written public correspondence was received prior to the meeting. The City Council directed staff to reconsider the types of commercial development that would be exempt from the fees as a way to incentivize neighborhood -serving uses that are necessary to support the anticipated residential development identified in the Housing Element. For example, in the Airport Area there are limited neighborhood -serving commercial uses present to support the anticipated residential demand. The City Council also expressed concerns about applying fees to commercial uses that generate revenue for the City through sales or transit occupancy tax and would likely offset their own costs of service. At the close of the study session, the City Council directed staff to proceed with the necessary resolution and ordinances to implement the program with modifications to the applicability of fees for certain nonresidential uses. Additional analysis is provided later in this report that addresses the application of fees for nonresidential uses. The draft resolution specifies how the DIFs would be applied to both residential and nonresidential development and the draft resolution includes additional details regarding administration of the program. Residential Impact Fees Residential fees would only apply to new housing projects and subsequent additions on sites that are identified as a Housing Opportunity site in the City's new Housing Opportunity Overlay Zoning Districts (Section 20.28.050 of the NBMC). The fees would also apply to housing projects that are approved through a legislative amendment, such as a general plan amendment. Therefore, if a residential property owner on Balboa Island were to add a new dwelling unit or accessory dwelling unit (ADU) to their property, the fees would not apply since their property is not identified as a housing opportunity site nor are they requesting a zoning code or general plan amendment. Fees would apply based on the proposed floor area of the housing project including any indoor amenity spaces but excluding parking structures and outdoor space. Fees would not apply to any affordable dwelling units, nor would they apply to ADUs. Nonresidential Impact Fees Based on City Council comments, the applicability of fees for nonresidential development has been carefully addressed. 15-8 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 9 The draft resolution exempts several classes of commercial development from the DIF Program. DIFs would not apply to retail uses such as grocery stores, eating and drinking establishments, or other neighborhood -serving uses. These uses are exempt because they directly contribute to the establishment and maintenance of a complete residential neighborhood. Other exempt uses include tax-exempt institutional uses such as religious facilities, cultural institutions, or educational uses. Temporary uses, governmental facilities, and tax-exempt social service uses would also be exempt. Lastly, staff is recommending that certain other uses like vehicle sales and visitor accommodations be exempt as they produce substantial tax benefits that would offset any potential infrastructure impacts. Credits and Refunds The draft resolution includes details regarding the application of credits and refunds. In many situations, proposed development would replace an existing use onsite. If a proposed project would replace an existing residential use with another residential use, then the developer would be issued a credit for the existing use. The same would apply to replacement of a nonresidential use. However, when a proposed residential use would replace a nonresidential use, then the developer would not receive a credit. The same would apply to a replacement of residential uses with nonresidential uses. This is reasonable because the existing buildings did not pay into the DIF program. Additionally, the draft ordinances also allow for developers to receive a credit towards the fee if they are required to construct a public facility that is determined to have sufficient size, length or capacity as determined by the City. Procedures to Reduce or Waive Fees If a proposed use is subject to the DIF Program, the developer would have two options to reduce or waive fees. First, the ordinances include a waiver or reduction process, by which the developer can provide evidence to demonstrate that there is no reasonable relationship or nexus between the fee and the type of facilities to be financed (e.g., fire facilities). Appeals would be subject to review by the City Council. Second and aside from the prescribed waiver or reduction process, Chapter 20.32 (Density Bonus) of the NBMC provides that certain residential and mixed -use projects that include affordable housing may request a concession or incentive as part of their density bonus application. The developer may use one of their incentives or concessions to waive or reduce the DIFs. Each fee shall require the use of one incentive or concession. As described in NBMC Section 20.32.070 (Allowed Incentives or Concessions), a waiver or reduction of a fee is at the sole discretion of the City Council and is not a mandatory requirement of State Density Bonus Law. 15-9 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 10 Project Case Study A hypothetical project is analyzed in Table 2, below, to demonstrate how DIFs would apply to a mixed -use project within the new Housing Overlay Zoning District for the Airport Area (HO-1). The hypothetical project includes the demolition of 20,000 square feet of office space and the construction of 81 market rate residential units, 9 affordable residential units, and 4,370 square feet of retail space on the ground floor. The affordable units are assumed to be 1-bedrooms consisting of 850 square feet each. Table 2: Hypothetical Project Example Fee Type Land Use Type Retail Residential2Affordable Units 4,370 s . ft. 104,464 s . ft. 7,650 s . ft. 3 Recreation - $490,980 - Police - $105,508 - Fire - $180,722 - Water - $94,017 - Sewer - $58,499 - Total $0 $929,726 $0 1. All fees are assessed per square foot of gross floor area. 2. DIFs are assessed on a per square foot basis for all areas of the development that are considered part of the "gross floor area". Gross floor area includes the dwelling units as well as ancillary spaces and rooms such as enclosed amenity spaces, lobbies, clubhouses, utility rooms, and stairs and elevators on the first level. Parking structures, courtyards, balconies, and outdoor spaces would not be included in the fee calculation. 3. Only the gross floor area within the walls of the affordable dwelling unit is exempt from DIFs. For discussion purposes, if the project included 4,370 square feet of office instead of retail or another exempt nonresidential land use, then the fees for the office component would be imposed in addition to the residential DIF. Because the project includes demolition of an existing office space, credit would have been given in this instance for reconstruction of office space. Credit would have also been given for the proposed retail use described in Table 2; however, the proposed retail space is neighborhood serving and exempt from fees such that no credit was needed. In sum, fee credits would only be issued for replacement of the same type of land use (residential vs. nonresidential). Comparisons to Other Cities As part of the Nexus Study analyses, Willdan compared the proposed fees to other jurisdictions. Attachment E (Comparison Survey) of this staff report includes the comparison of the City's fees to other jurisdictions and demonstrates the City's proposed DIF Program is generally consistent with other cities. An example is provided below comparing a hypothetical apartment project consisting of 229 units (Table 3 of Attachment E): 15-10 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 11 Table 3: Comparison of Fees for 229 Apartment Project Table 3: Multifamily Protot pe - 229 Apartments DRAFT Newport Fee Category Beach Beverly Hills Huntington Beach Irvine Irvine Low (High)' Laguna Beach Malibu San San Clemente Clemente Low' (High)2 Santa Monica Arlin Public Place53 $ $ $ $ $ $ $ $ $ $ - Child Care 42,463 General Government 148,429 148,429 - Fire 337,322 80,116 - - Infrastructure - - 4,134,366 Libraries 198,424 - 45,800 Parking' - - - Parks4 - 2,915,820 723,411 - 1,261,996 Police 196,934 170,944 - 431,180 431,180 - Recreation 916,425 - - - - Sewer 175,486 485,741 876,383 Storm Drain - - - 3,817 184,280 Water 109,191 655,398 1,179,579 722,724 722,724 $ $4,506,443 $2,101,762 $723,411 $1,304,460 Total - per Prototype $1,735,358 $ $4,134,366 $1,306,149 $1,486,612 Irvine hfrostruclure Fees apply only to the "Irvine Business Complex" area' ' San Clemente Storm Drain fees vary by project location, ' FL61ic Art fee assumes that art is Iitled onsite. Parking fee assumes parking is provided onsite. "Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act teas it ieu of parkland dedication are excluded from this table. Revenue Projections and Use of Fees The revenue projections for the DIF Program are calculated based on full buildout of the Housing Element for residential impact fees. For nonresidential impact fees, revenue projections are based on the City's anticipated increase in employment population (i.e., an additional 1,500 employees). A detailed discussion of the planned facilities for each fee category and the methodology used to determine the fees are included in the Nexus Study. The City's FY 2024-2025 through FY 2029-2030 Capital Improvement Program (CIP) and 2024 Facilities Financing Plan (FFP) were used to develop the planned facilities lists and anticipated facilities' costs. The anticipated revenue projections and use of those revenues are summarized in Table 4 below for each fee category2. Table 4: Revenue Projections, Facilities Costs, and Non -Fee Funding Required Fee Category Cost of Planned Facilities DIF Revenue Non -Fee Funding Required Recreation $72,814,300 $72,814,300 None Police $92,400,000 $16,079,000 $76,321,000 Fire $46,336,175 $28,204,000 $18,132,175 Water N/A $14,432,500 N/A Sewer N/A $9,100,600 N/A Total $211,550,475 $140,630,400 $94,453,175 The water and sewer DIFs use a different methodology, referred to as the "buy -in" method. This method assumes that the existing infrastructure has been built with excess capacity that new development may buy into. Therefore, no planned facilities are included in the study and these fees may be used for maintenance, repair or construction projects for water or sewer facilities. 2 Fees may only be used for the specific purpose for which they were collected. 15-11 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 12 Implementation and Recordkeeping If the City Council chooses to adopt the resolution and introduce the ordinances, the three ordinances would return for a second reading on December 10, 2024. The DIF Program would then become effective 60-days after adoption of the resolution. There are several reporting requirements related to DIFs. There is no time limit by which DIF revenue must be spent. However, if the City is accruing DIF revenue to fund new developments' share of a project, then it must make certain findings with respect to unexpended DIF fund balances after five years. These are known as "5-Year Findings" and are critical to the success of the City's DIF Program. The City is also required to provide an annual report regarding collection and use of DIF revenues within 180 days after the last day of each fiscal year. A detailed discussion of the reporting requirements is included in the Nexus Study. FISCAL IMPACT: Assuming full buildout of the Housing Element's residential capacity and full buildout of nonresidential development as projected by SCAG, the DIF Program is projected to provide approximately $140,630,400 in funding to support specific City service facilities including recreation, police, fire, water, and sewer facilities. Table 4 (previous page) shows the projected revenue anticipated by the planning timeframe for each fee category and the amount of non -fee funding that the City will be required to allocate towards the planned facilities list to supplement the DIFs. The City would be responsible for identifying approximately $94,453,175 in non-DIF funding to fully fund the planned facilities. The proposed fee schedule identified in the attached Resolution includes a 2% administrative fee that would fully cover the cost of implementing the development impact fee program. This administrative fee is consistent with other cities and would be reviewed on a yearly basis to ensure that the administrative fee does not exceed the City's costs associated with administering the program. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15378(b)(4), 15061(b)(3), and 15273 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item), and according to the specific regulations set forth in the MFA, as described below. 15-12 Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program November 12, 2024 Page 13 Pursuant to Government Code Section 66016.5, the City published a public notice regarding the adoption of a Nexus Study and Establishment of DIFs in the Daily Pilot on October 12, 2024, at least 30 days prior to holding a public hearing. The Nexus Study was also posted on the City's website and made available in hardcopy format at the City's Central Library, and at the Planning Division for review more than 30 days prior to the public hearing. Additionally, public notice regarding potential adoption of the fee was provided to all interested parties at least 14 days prior to the public hearing pursuant to Government Code Section 66019(b). A public notice was posted in a newspaper of local circulation 10 days prior to the public hearing in compliance with the Brown Act and Government Code Sections 6066, 66018, and 6062A. ATTACHMENTS: Attachment A — Resolution No. 2024-83: Establishing Development Impact Fee Attachment B — Ordinance No. 2024-30: Water and Sewer Capital Improvement Fee Attachment C — Ordinance No. 2024-31: Recreational Facilities Improvement Fee Attachment D — Ordinance No. 2024-32: Public Safety Development Impact Fee Attachment E — Comparison Survey 15-13 Attachment A Resolution No. 2024-83 15-14 RESOLUTION NO. 2024- 83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING THE DEVELOPMENT IMPACT FEE NEXUS STUDY FOR THE CITY OF NEWPORT BEACH AND ESTABLISHING DEVELOPMENT IMPACT FEES FOR NONRESIDENTIAL AND RESIDENTIAL DEVELOPMENT (PA2021-127) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, pursuant to Government Code Section 66000, et seq. ("Mitigation Fee Act"), which governs the establishment of Development Impact Fees ("DIFs"), the City is duly authorized to impose DIFs for purposes of defraying all or a portion of the costs of public facilities related to new development occurring within the City; WHEREAS, pursuant to the Mitigation Fee Act, local agencies are required to make specific findings when imposing fees to mitigate impacts of development projects and ensure the fees are justified and used appropriately; WHEREAS, Newport Beach will continue to experience additional development and expansion based on population and employment growth projections from the Southern California Association of Governments and as identified in the City's General Plan 6tn Cycle Housing Element; WHEREAS, new development, especially projects involving an addition or a change of use will increase demand for public services and the facilities required to deliver them; WHEREAS, Assembly Bill 602 ("AB 602") amended the Mitigation Fee Act in 2021 and emphasized the need to adopt a DIF Nexus Study ("Nexus Study") at a public hearing prior to the adoption of any new or increased DIF; WHEREAS, AB 602 requires in part that the Nexus Study identify the existing level of service for each public facility, identify new levels of service, include an explanation of why the new levels of service are more appropriate, and include information to support the required findings for adoption of new or increased DIFs; 15-15 Resolution No. 2024- Page 2 of 5 WHEREAS, the City retained the professional services of Willdan Financial Services to prepare the required Nexus Study as set forth in Exhibit "A," which is attached hereto and incorporated herein by reference; WHEREAS, the Nexus Study provides a quantified basis to support each DIF and the legal support for the required findings to justify the amount of each DIF, based on the level of service of public facilities, and the project burdens on those facilities caused by prospective development in the City; WHEREAS, the City's Capital Improvement Program for Fiscal Year 2024-25 through 2029-30 and 2024 Facilities Financing Plan indicate the approximate location, size, time of availability, and cost estimates for all facilities or improvements to be financed by the City's DIFs; WHEREAS, the City Council held a study session on August 27, 2024, allowing an early opportunity for the public to provide input on the Nexus Study's findings and City staffs recommendations on the proposed DIFs; and WHEREAS, a duly noticed public hearing was held by the City Council on November 12, 2024, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 6000 et seq., California Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and the Mitigation Fee Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby adopt the Development Impact Fee Nexus Study and Fiscal Year 2024-25 Development Impact Fee Schedule, both of which are attached hereto as Exhibits "A" and "B," respectively, and incorporated herein by reference. 15-16 Resolution No. 2024- Page 3 of 5 Section 2: Ordinance Nos. 2024-_, 2024-_, and 2024-_, adopted contemporaneously with this resolution, authorize the City to apply the development impact fees for Recreation, Police, Fire, Water, and Sewer Facilities provided herein. Additionally, based on the Nexus Study and consistent with the requirements of the Mitigation Fee Act, the City Council does hereby find, as fully set forth in the Nexus Study, the following: a. That the purpose of the impact fees has been identified; b. That the use of the fees has been identified; c. That there is a reasonable relationship between the use and the type of project on which it is imposed; and d. That there is a reasonable relationship between the need for public improvements and the type of project on which it is imposed. Section 3: The Fiscal Year 2024-25 Development Impact Fee Schedule set forth in Exhibit "B" shall be adjusted annually for inflation based on the California Construction Cost Index ("CCCI") one year after the effective date of this resolution. Section 4: The Community Development Director or, if appealed, the City Council shall interpret the total amount of the fees owed in accordance with the Fiscal Year 2024-25 Development Impact Fee Schedule set forth in Exhibit "B" and the Development Impact Fee Guidelines which is attached as Exhibit "C," and incorporated herein by reference. Section 5: The fees identified in the Fiscal Year 2024-25 Development Impact Fee Schedule set forth in Exhibit "B," shall apply to all land use and building permit applications that are not deemed complete by the Community Development Department prior to the effective date of this resolution. Section 6: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 15-17 Resolution No. 2024- Page 4 of 5 Section 7: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 8: The City Council finds the introduction and adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 15-18 I;?Me NMel ►150VOYZ! Page 5 of 5 Section 9: This resolution shall be effective 60 calendar days after its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 12th day of November, 2024. Will O'Neill Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron Harp City At orney Attachments: Exhibit A — Development Impact Fee Nexus Study Exhibit B — Fiscal Year 2024-25 Development Impact Fee Schedule Exhibit C -- Development Impact Fee Guidelines 15-19 Exhibit "A" Development Impact Fee Nexus Study 15-20 CITY OF N EWPORT BEACH DEVELOPMENT IMPACT FEE NEXUS STUDY REVISED FINAL OCTOBER 22, 2024 Oakland Office 66 Franklin Street Suite 300 Oakland, CA 94607 TeL (510) 832-0899 *,"W I LLDAN FINANCIAL SERVICES Corporate Office 27368 Via Industria Suite 200 Temecula, CA 92590 Tel: (800) 755-6864 Fax: (888) 326-6864 www.willdan.com Other Regional Offices Aurora, CO Orlando, FL Phoenix, AZ Plano, TX Washington, DC 15-21 This page intentionally left blank. 15-22 TABLE OF CONTENTS EXECUTIVESUMMARY.......................................................................... 1 Background and Study Objectives 1 Facility Standards and Costs 1 Use of Fee Revenues 2 Development Impact Fee Schedule Summary 2 1. INTRODUCTION........................................................................... 4 Public Facilities Financing in California 4 Study Objectives 4 Fee Program Maintenance 5 Study Methodology 5 Types of Facility Standards 5 New Development Facility Needs and Costs 6 Organization of the Report 7 2. GROWTH FORECASTS................................................................. S Land Use Types 8 Impact Fees for Accessory Dwelling Units 8 Existing and Future Development 9 Occupant Densities 10 Land Value Assumptions 11 3. RECREATION FACILITIES............................................................ 13 Service Population 13 Existing Facilities Inventory 13 Preliminary Planned Facilities 15 Cost Allocation 15 Existing Level of Service 15 Future Level of Serv'ce 15 Fee Revenue Projection 16 Fee Schedule 16 Mitigation Fee Act Findings 17 Purpose of Fee 17 Use of Fee Revenues 17 Benefit Relationship 17 Burden Relationship 18 Proportionality 18 4. POLICE FACILITIES.................................................................... 19 Service Population 19 Existing Facility Inventory 20 Preliminarily Planned Facilities 20 Cost Allocation 21 Existing Level of Service 21 r Wl LLDAN 15-23 City of Newport Beach Development Impact Fee Nexus Study Future Level of Service 21 Fee Revenue Projection 22 Fee Schedule 22 Mitigation Fee Act Findings 23 Purpose of Fee 23 Use of Fee Revenues 23 Benefit Relationship 24 Burden Relationship 24 Proportionality 24 5. FIRE/LIFE SAFETY FACILITIES.................................................... 26 Service Population 26 Existing Facility Inventory 27 Planned Facilities 28 Cost Allocation 28 Existing Level of Service 28 Future Level of Service 28 Fee Revenue Projection 29 Fee Schedule 29 Mitigation Fee Act Findings 30 Purpose of Fee 30 Use of Fee Revenues 30 Benefit Relationship 31 Burden Relationship 31 Proportionality 31 6. WATER CAPACITY..................................................................... 33 Water Demand 33 Current Water System Asset Valuation 33 Fee per Gallon per Day 34 Fee Schedule 35 7. SEWER CAPACITY..................................................................... 36 Sewer Demand 36 Current Sewer System Asset Valuation 36 Fee per Gallon per Day 37 Fee Schedule 37 8. AB 602 REQUIREMENTS............................................................ 39 Compliance with AB 602 39 66016.5. (a) (2) - Level of Service 39 66016.5. (a) (4) — Review of Original Fee Assumptions 39 6016.5. (a) (5) -- Residential Fees per Square Foot 39 66016.5. (a) (6) — Capital Improvement Plan 39 9. IMPLEMENTATION...................................................................... 41 Impact Fee Program Adoption Process 41 Inflation Adjustment 41 Reporting Requirements 41 %W I LLDAN r► eiw NOAL59AVICK 15-24 City of Newport Beach Development Impact Fee Nexus Study Programming Revenues and Projects with the CIP 44 APPENDIX......................................................................................... 45 WI LLDAN MANCiAL 9EBV M 15-25 Executive Summary This report summarizes an analysis of development impact fees needed to support future development in the City of Newport Beach through calendar year 2045. It is the City's intent that the costs representing future development's share of public facilities and capital improvements be imposed on that development in the form of a development impact fee, also known as a public facilities fee. The public facilities and improvements included in this analysis are divided into the fee categories listed below: Recreation Facilities ■ Water Capacity Police Facilities Sewer Capacity Fire/Life Safety Facilities Background and Study Objectives The primary policy objective of a development impact fee program is to ensure that new development pays the capital costs associated with growth. Although growth also imposes operating costs, there is not a similar system to generate revenue from new development for services. The primary purpose of this report is to calculate and present fees that will enable the City to expand its inventory of public facilities, as new development creates increases in service demands. If adopted, the City would collect public facilities fees under authority granted by the Mitigation Fee Act (the Act), contained in California Government Code Sections 66000 et seq. This report provides the necessary findings required by the Act for adoption of the fees presented in the fee schedules contained herein. If the City adopts impact fees, it should program development impact fee funding to specific capital projects through its Capital improvement Program (CIP). Using a CIP would allow the City to identify and direct its fee revenue to public facilities projects that will accommodate future growth. By programming fee revenues to specific capital projects, the City can help ensure a reasonable relationship between new development and the use of fee revenues as required by the Act. Facility Standards and Costs There are several approaches to calculate facilities standards and allocate the costs of planned facilities to accommodate growth in compliance with the Act requirements in this study. The system plan approach is based on a master facility plan in situations where the needed facilities serve both existing and new development. This approach allocates existing and planned facilities across existing and new development to determine new development's fair share of facility needs. This approach is used when it is not possible to differentiate the benefits of new facilities between new and existing development. Often the system plan is based on increasing facility standards, so the City must find non -impact fee revenue sources to fund existing development's fair share of planned facilities. This approach is used for the police and fire/life safety facility fees in this report. The planned facilities approach allocates costs based on the ratio of planned public facilities that are necessitated by the increase in demand associated with new development. This approach is appropriate when specific planned facilities that only benefit new development can be identified, or when the specific share of facilities benefiting new development can be identified. This approach is used for the recreation facilities fees in this report. W I LLDAN 15-26 City of Newport Beach Development Impact Fes Nexus Study The buy -in method is typically used when the existing system has sufficient capacity to serve new development, now and into the future. Under the buy -in methodology, new development "buys" a proportionate share of existing capacity at the current value of the existing facilities. This approach is typically used for utility fees, where existing facilities are built with excess capacity to serve future development. This approach is used for the water and sewer capacity charges in this report. The existing inventory approach is based on a facility standard derived from the City's existing level of facilities and existing demand for services. This approach results in no facility deficiencies attributable to existing development. While preliminary facilities to accommodate growth are identified in this report, facilities to serve growth will be programmed through the City's annual CIP and .budget process and/or completion of a new facility financial plan. This approach is not used in this report, though the existing level of service is identified as appropriate to comply with provisions of AS 602. = w..., * . ... Impact fee revenue must be spent on new facilities or the expansion of current facilities to serve new development. Facilities can be generally defined as capital acquisition items with a useful life greater than five years. Impact fee revenue can be spent on capital facilities to serve new development, including but not limited to land acquisition, construction of buildings, construction of infrastructure, the acquisition of vehicles or equipment, information technology, software licenses and equipment. Revenue from the capacity charges for water and sewer facilities can be used to reimburse the City for prior infrastructure investments. Once reimbursed, the City is able to spend fee revenue as it desires. In that the City cannot predict with certainty how and when development within the City will occur during the planning horizon assumed in this study, the City may need to update and revise the project lists funded by the fees documented in this study. Any substitute projects should be funded within the same facility category, and the substitute projects must still benefit and have a relationship to new development. The City could identify any changes to the projects funded by the impact fees when the CIP is updated. The impact fees could also be updated if significant changes to the projects funded by the fees are anticipated. Development Impact Fee'Schedule Summary Table E.1 summarizes the maximum justified development impact fees that meet the City's identified needs and comply with the requirements of the Act. W I LLDAN PiRANC4At SERVICES 15-27 City of Newport Beach Development Impact Fee Nexus Study E.1: Maximum Justified Development Impact Fee Schedule Land Use Recreation Facilities Police Facilities Fire/Life Safety Facilities Water Sewer Capacity Ca a city Total Residential - ner Sq.. Ft. $ 4.70 $ 1.01 $ 1.73 $ 0.90 $ 0.56 $ 8.90 Nonresidential - per Sq. Ft. Commercial $ - $ 0.74 $ 1.82 $ 0.91 $ 0.70 $ 4.17 Office - 1.14 2.79 0.62 0.51 5.06 Industrial - 0.40 0.99 0.77 0.49 2.65 Sources: Tables U, 4.7, 5.7, 6.4, and 7.4. 3 W I LLDAN i1NrtNCIAL SOVICeS 15-28 1. Introduction This report presents an analysis of the need for public facilities to accommodate new development in the City of Newport Beach. This chapter provides background for the study and explains the study approach under the following sections: • Public Facilities Financing in California; ■ Study Objectives; • Fee Program Maintenance,- 0 Study Methodology; and • Organization of the Report. Public Facilities Financing in California The changing fiscal landscape in California during the past 45 years has steadily undercut the financial capacity of local governments to fund infrastructure. Three dominant trends stand out: • The passage of a string of tax limitation measures, starting with Proposition 13 in 1978 and continuing through the passage of Proposition 218 in 1996; ■ Declining popular support for bond measures to finance infrastructure for the next generation of residents and businesses; and ■ Steep reductions in federal and state assistance. Faced with these trends, many cities and counties have had to adopt a policy of "growth pays its own way." This policy shifts the burden of funding infrastructure expansion from existing ratepayers and taxpayers onto new development. This funding shift has been accomplished primarily through the imposition of assessments, special taxes, and development impact fees also known as public facilities fees. Assessments and special taxes require the approval of property owners and are appropriate when the funded facilities are directly related to the developing property. Development impact fees, on the other hand, are an appropriate funding source for facilities that benefit all development jurisdiction -wide. Development impact fees need only a majority vote of the legislative body for adoption. Study Objectives The primary policy objective of a public facilities fee program is to ensure that new development pays the capital costs associated with growth. The primary purpose of this report is to establish development impact fees for the City of Newport Beach based on the most current available facility plans and growth projections. The maximum justified fees will enable the City to expand its inventory of public facilities as new development leads to increases in service demands. If adopted, the City would collect public facilities fees under authority granted by the Mitigation Fee Act (the Act), contained in California Government Code Sections 66000 et seq. This report provides the necessary findings required by the Act for adoption of the fees outlined in the fee schedules presented in this report. The City of Newport Beach is forecast to see moderate growth through this study's planning horizon of 2045. This growth will create an increase in demand for public services and the facilities required to deliver them. Given the revenue challenges described above, Newport Beach has decided to investigate use of a development impact fee program to ensure that new development funds its share of facility costs associated with growth. This report makes use of the *�WILLDAN 15-29 of Newport Beach Development Impact Fee Nexus Study most current available growth forecasts and facility plans to calculate impact fees to fund facility needs resulting from demand from new development. Fee Program Maintenance Once a fee program has been adopted it must be properly maintained to ensure that the revenue collected adequately funds the facilities needed by new development. To avoid collecting inadequate revenue, the inventories of existing facilities and costs for planned facilities must be updated periodically for inflation, and the fees recalculated to reflect the higher costs. The use of established indices such as the Califomia Construction Cost Index, are necessary to accurately adjust the impact fees. See Chapter 9 for a discussion of best practices for inflation adjustments. While fee updates using inflation indices are appropriate for annual or periodic updates to ensure that fee revenues keep up with increases in the costs of public facilities, it is recommended to conduct more extensive updates of the fee documentation and calculation (such as this study) when significant new data on growth forecasts and/or facility plans become available. For further detail on fee program implementation, see Chapter 9. Study Methodology Development impact fees are calculated to fund the cost of facilities required to accommodate growth. The six steps followed in this development impact fee study include: 1. Estimate existing development and future growth: Identify a base year for existing development and a growth forecast that reflects increased demand for public facilities; 2. Identify facility standards: Determine the facility standards used to plan for new and expanded facilities; 3. Determine facilities required to serve new development: Estimate the total amount of planned facilities, and identify the share required to accommodate new development; 4. Determine the cost of facilities required to serve new development: Estimate the total amount and the share of the cost of planned facilities required to accommodate new development; 5. Calculate fee schedule: Allocate facilities costs per unit of new development to calculate the development impact fee schedule; and 6. Identify alternative funding requirements: Determine if any non -fee funding is required to complete projects. The key public policy issue in development impact fee studies is the identification of facility standards (step #2, above). Facility standards document a reasonable relationship between new development and the need for new facilities. Standards ensure that new development does not fund deficiencies associated with existing development. Types of Facility Standards There are three separate components of facility standards: ■ Demand standards determine the amount of facilities required to accommodate growth, for example, park acres per thousand residents, square feet of library space per capita, or gallons of water per day. Demand standards may also reflect a level of service such as the vehicle volume -to -capacity (V/C) ratio used in traffic planning. ■ Design standards determine how a facility should be designed to meet expected demand, for example, park improvement requirements and technology infrastructure W I LLDAN 15-30 City of Newport Beach Development Impact Fee Nexus Study for City office space. Design standards are typically not explicitly evaluated as part of an impact fee analysis but can have a significant impact on the cost of facilities. Our approach incorporates the cost of planned facilities built to satisfy the City's facility design standards. Cost standards are an alternate method for determining the amount of facilities required to accommodate growth based on facility costs per unit of demand. Cost standards are useful when demand standards were not explicitly developed for the facility planning process. Cost standards also enable different types of facilities to be analyzed based on a single measure (cost or value) and are useful when different facilities are funded by a single fee program. Examples include facility costs per capita, cost per vehicle trip, or cost per gallon of water per day. New Development Facility Needs and Costs A number of approaches are used to identify facility needs and costs to serve new development. This is often a two-step process: (1) identify total facility needs, and (2) allocate to new development its fair share of those needs. There are several methods for determining new development's fair share of planned facilities costs: the system plan method, the planned facilities method, the buy -in method and the existing inventory method. The formula used by each approach and the advantages and disadvantages of each method is summarized below: System Plan Method This method calculates the fee based on the value of existing facilities plus the cost of planned facilities, divided by demand from existing plus new development: Value of Existing Facilities + Cost of Planned Facilities Existing + New Development Demand = $/unit of demand This method is useful when planned facilities need to be analyzed as part of a system that benefits both existing and new development. It is difficult, for example, to allocate a new fire station solely to new development when that station will operate as part of an integrated system of fire stations that together achieve the desired level of service. The system plan method ensures that new development does not pay for existing deficiencies. Often facility standards based on policies such as those found in General Plans are higher than the existing facility standards. This method enables the calculation of the existing deficiency required to bring existing development up to the policy -based standard. The local agency must secure non -fee funding for that portion of planned facilities required to correct the deficiency to ensure that new development receives the level of service funded by the impact fee. This approach is used for the police and fire/life safety facility fees in this report. Planned Facilities Method The planned facilities method allocates costs based on the ratio of planned facility costs to demand from new development as follows: Cost of Planned Facilities New Development Demand cost per unit of demand This method is appropriate when planned facilities will entirely serve new development, or when a fair share allocation of planned facilities to new development can be estimated. An example of the former is a wastewater trunk line extension to a previously undeveloped area. An example of the latter its when the identified planned facilities represent a lower level of service that currently exists, so new development can fully fund the identified planned facilities. This approach is used to calculate the recreation facility fees in this report. *" VlLLDAN 15-31 City of Newport Beach Development impact Fee Nexus Study Buy In Method The buy -in method is based on the value of the existing system's capacity. This method is typically used when the existing system has sufficient capacity to serve new development now and into the future. Under the buy -in methodology, new development "buys" a proportionate share of existing capacity at the current value of the existing facilities. The buy -in fee is determined by taking the current value of assets (replacement cost new, less depreciation) divided by the current capacity provided by the system. Responsibility for new capital improvements is then shared equally by all customers. A simplified version of the calculation equation is: Present Value of Existing Facilities Existing System Capacity = cost per unit of demand This approach is typically used for utility fees, where existing facilities are built with excess capacity to serve future development. This approach is used for the water and sewer capacity fees in this report. Existing Inventory Method The existing inventory method allocates costs based on the ratio of existing facilities to demand from existing development as follows: Current Value of Existing Facilities Existing Development Demand = cost per unit of demand Under this method new development will fund the expansion of facilities at the same standard currently serving existing development. The existing inventory method results in no facility deficiencies attributable to existing development. This method is often used when a long-range plan for new facilities is not available. Future facilities to serve growth are identified through an annual CIP and budget process, possibly after completion of a new facility financing plan. This approach is not used in this report, though the existing level of service is identified as appropriate to comply with provisions of AB 602. r r�URI= � The determination of a public facilities fee begins with the selection of a planning horizon and development of growth projections for population and employment. These projections are used throughout the analysis of different facility categories and are summarized in Chapter 2. Chapters 3 through 7 identify facility standards and planned facilities, allocate the cost of planned facilities between new development and other development, and identify the appropriate development impact fee for each of the following facility categories: Recreation Facilities Water Capacity Police Facilities Sewer Capacity Fire/Life Safety Facilities Chapter 8 describes how this nexus study complies with the requirements of Assembly Bill (AB) 602. Chapter 9 details the procedures that the City must follow when implementing a development impact fee program. Impact fee program adoption procedures are found in California Government Code Sections 66016 through 66018. W I LLDAN 1'1l/AMEIAL MVIUS 15-32 2. Growth Forecasts Growth projections are used as indicators of demand to determine facility needs and allocate those needs between existing and new development. This chapter explains the source for the growth projections used in this study based on a 2024 base year and a planning horizon of 2045. Estimates of existing development and projections of future growth are critical assumptions used throughout this report. These estimates are used as follows: ■ The estimate of existing development in 2024 is used as an indicator of existing facility demand and to determine existing facility standards. The estimate of total development at the 2045 planning horizon is used as an indicator of future demand to determine total facilities needed to accommodate growth and remedy existing facility deficiencies, if any; and Estimates of growth from 2024 through 2045 are used to (1) allocate facility costs between new development and existing development, and (2) estimate total fee revenues. The demand for public facilities is based on the service population, dwelling units or nonresidential development creating the need for the facilities. Land Use Types To ensure a reasonable relationship between each fee and the type of development paying the fee, growth projections distinguish between different land use types. The land use types for which impact fees have been calculated are defined below. ■ Residential Dwelling Units: All residential dwelling units, including detached and attached one -unit dwellings and all multifamily dwellings including apartments, duplexes and condominiums. ■ Commercial: All commercial, retail, educational, and service development. ■ Office: Ali general, professional, and medical office development. ■ Industrial: All manufacturing, warehouse, distribution, and other industrial development. Some developments may include more than one land use type, such as a mixed -use development with both residential and commercial uses. In those cases, the facilities fee would be calculated separately for each land use type. The City has the discretion to determine which land use type best reflects a development project's characteristics for purposes of imposing an impact fee and may adjust fees for special or unique uses to reflect the impact characteristics of the use. If a project results in the intensification of use, at its discretion, the City can charge the project for the difference in fees between the existing low intensity use and the future high intensity use. Impact Fees for Accessory Dwelling Units The California State Legislature recently amended requirements on focal agencies for the imposition of development impact fees on accessory dwelling units (ADU) with AB 68 in 2021. The amendment to California Government Code §65852.2(0(2) stipulates that local agencies may not impose any impact fees on ADU less than 750 square feet. ADU greater than or equal to 750 square feet can be charged impact fees in proportion to the size of the primary dwelling unit. W I LLDAN 15-33 City of !Newport Beach Development Impact Fee !Nexus Study Calculating Impact Fees for Accessory ®welling Units For ADUs greater than or equal to 750 square feet, impact fees can be charged as a percentage of the single-family impact fee. The formula is: ADU Square Feet Primary Residence Square Feet x Single Family Impact Fee =ADU Impact Fee In the case of an 800 square foot ADU and a 1,600 square foot primary residence, the impact fees would be 50 percent (800 square feet 1 1,600 square feet = 50%) of the single-family dwelling unit fee. Existing and Future Development Table 2.1 shows the estimated number of residents, dwelling units, employees, and building square feet in Newport Beach, both in 2024 and in 2045. The base year estimates of household residents and dwelling units came from the California Department of Finance (DOF). The population projection for 2045 was calculated based on the increase in dwelling units identified in the City's recent Housing Element (excluding development projects in the pipeline) multiplied by estimates of 2.09 residents per single family unit and 1.56 residents per multifamily unit calculated from the latest data from the American Community Survey for Newport Beach. The projection assumes that 90% of future dwelling units will be multifamily units, based on direction from City planning staff. Base year employees were estimated based on the latest data from the US Census' OnTheMap application and exclude 886 local government (public administration) employees: Local government employees are excluded; it is assumed that local government employees are needed to serve development, as opposed to being the development that must be served. The increase of 1,500 jobs in the City is based on the Southern California Association of Government's (SCAG) SoCal Connect Growth Forecast. The projected proportion of workers by land use is consistent with current estimates. The estimates of non-residential building square feet were estimated by dividing employee counts by the occupancy density factors presented in the following table. WILLDAN xrunwcrnw s�avic�s 15-34 City of Newport Beach Development Impact Fee Nexus Study Table 2,1: Existing and New Development 2024 2045 Increase Residents 1 82,008 96,107 14,099 Dwelling„ Units 2 Single Family 27,433 28,307 874 Multifamily 17,677 25,544 7,867 Total 45,110 49,001 8,741 Employment a Commercial 20,458 20,880 422 Office 43,646 44,546 900 Industrial 8,672 8,850 178 Total 72,776 74,276 1,600 Equivalent Building Sauare Feet (OOOs)I Commercial 9,629 9,828 199 Office 13,408 13,684 276 Industrial 7,488 7,642 154 Total 30,525 31,154 629 ` Current household population from California Department of Finance. Projection for 2045 based on multiplying increase in dw elling units by an assumption of 2.09 residents per single family unit and 1.56 residents per multifamily unit, based on the latest data from the American Community Survey. 2 Current values from California Department of Finance. Increase in total dwelling units based on total potential development capacity of dwelling units of housing need Identif led in the Housing Bement Table 3-37, excluding projects in the pipeline. Assumes 90% of new units w ill be multifamily, based on direction from City staff. 3 Current estimates of primary jobs from the US Census' OnTheMap. Increase of 1,500 jobs based on data from SCAG SoCal Connect 2020 Growth Forecast. Assumes current ratio among land uses w III be maintained. ° Fstlmated building square feet calculated based on employment estimates and density factors in Table 2.2. Sources: City of Newport Beach 2021-2029 Housing Bement; California Department of Finance, Table E 5, 2024; SCAG SoCal Connect 2020 Growth Forecast Technical Report, September 3, 2020; OnTheKtp Application, http,llonthemap.ces.census.gov; Table 2.2, Willdan Financial Services. Occupant Densities All fees in this report are calculated based on dwelling units or building square feet. Occupant density assumptions ensure a reasonable relationship between the size of a development project, the increase in service population associated with the project, and the amount of the fee. Occupant densities (residents per dwelling unit or workers per building square foot) are the most appropriate characteristics to use for most impact fees. The fee imposed should be based on the land use type that most closely represents the probable occupant density of the development. 10 WI LLDAN FINANMI, SERVICES 15-35 City of Newport Beach Development Impact Fee Nexus Study The occupancy factors are shown in Table 2.2. The residential density factors are based on data for Newport Beach from the 2022 U.S. Census' American Community Survey. Note that the ratio of single family to multifamily units is projected to change over time. The average residents per dwelling unit for growth projected to 2045 is 1.61 residents per unit and reflects the increasing ratio of multifamily units. The nonresidential occupancy factors are derived from national data from the Institute of Traffic Engineers Trip Generation Manual, 11th Edition. Table 2.2: Occupant Density Assumptions Residential 1.61 Residents per dwelling unit' Nonresidential Commercial 2.12 Employees per 1,000 square feet Office 3.26 Employees per 1,000 square feet Industrial 1.16 Employees per 1,000 square feet 1 Current average density per dwelling unit is 1.89 residents per unit, per ACS data. This w ill change as ratio of single fanfly units to multifamily units decreases. Average residents per dwelling unit for growth projected to 2045 is 1.61 residents per unit. Sources: U.S. Census Bureau, 2022 American Community Survey 1-Year Estimates, Tables B25024 and B25033 (New port Beach -specific); rrETrip Generation Manual, 11th Edition (national data); Willdan Financial Services. MR 10 : 0IN A key assumption in calculating impact fees is the value of land acquisition. Land acquisition costs vary widely in Newport Beach. To more accurately reflect the current cost of land acquisition, City staff prepared estimates of land acquisition costs for three geographical areas of the City, referred to in Table 2.3 as tiers. City GIS staff identified City owned parcels within each tier for use in this analysis. Figure 1 displays a map of the land value tiers. Table 2.3: Land Value Area Cost Per Acre Tier 1 $ 55,669,642 Tier 2 23, 028, 575 Tier 3 11, 324,133 Source: City of Newport Beach. 11 'I-' W I LLDAN F1HAM41Al 3ERVK*$ 15-36 City of Newport Beach Development Impact Fee Nexus Study Figure 1 r� " 11µ C' w u u •'� • • L2 • ,` • • w� 6a Will Ha 11 w A \ .. •E. �� YI • ti, ° • rT Newport Facility Inventory + :� • F, • �' . � • Community Center 0 FA . Fire Station • • 3 �, 1 a Parks ` a • TIER 1 • TIER I TIER 3 92 W"W I LLQAN _ x 15-37 3. Recreation Facilities The purpose of this fee is to ensure that new development funds its fair share of recreation facilities. A fee schedule is presented based on the planned facilities standard of recreation facilities per capita. Service Population Recreation facilities in Newport Beach primarily serve residents. Therefore, demand for services and associated facilities is based on the City's residential population. Table 3.1 shows the existing and future projected service population for recreation facilities. Table 3.1: Recreation Facilities Service Population Residents Existing (2024) 82,008 New Development (2024-2045) 14,099 Total (2045) 96,107 Source: Table 2.1. Existing Facilities Inventory The City's recreation facilities inventory is comprised of various community centers, senior centers, junior lifeguard facilities and harbor facilities. The replacement cost of the buildings was identified in the City's facilities planning documents. The assumed land costs were provided by the City for use in this analysis and vary by geographic area of the City. Replacement costs per square foot for existing buildings were identified in the City's Facilities Financial Plan (FFP). The replacement cost of existing recreation facilities that will be replaced by the planned facilities is excluded from the inventory. In total the City owns $438.8 million worth of recreation facilities. The recreation facilities inventory is displayed in Table 3.2. 13 �W I LLDAN 15-38 City of Newport Beach Development Impact Fee Nexus Study Table 3.2: Existing Recreation Facilities Inventory Replacement Facillty Amount Units Unit cost Cost Land Oasis Senior Citizens Center 4.92 acres $ 23,028,575 $ 113,252,475 Newport Coast Community Center 3.06 acres 55,669,642 170,512,612 Theater Arts Center 0.10 acres 23,028,575 2,302,858 West Newport Community Center 0.82 acres 23,028,576 18,792,797 Subtotal 8.90 acres $ 304,860,742 Buildings Bonita Creek Park Community Center 2,876 sq. ft. $ 850 $ 2,444,600 Carroll Beek Community Center 1,500 sq. ft. - - Junior Lifeguard Building 5,400 sq. ft. 850 4,590,000 Oasis Senior Citizens Center 43,232 sq. ft. 850 36,747,200 Cliff Dr Community Center 761 sq. ft. 850 646,850 Mariners Park Youth Center 1,820 sq. it. 850 1,647,000 Grant Howald Community Youth Center' 5,146 sq, ft. - - Newport Coast Community Center 16,865 sq. ft. 850 14,335,250 West Newport Community Center 11,980 sq. ft. 850 10,183,000 Theater Arts Center' 7,947 sq. ft. - - Subtotal 97,527 sq. ft. $ 70,493,900 Harbor Facilities ^ Marina Park Recreation Facilities, Offices and Class Rooms 6,500 sq, ft. $ 3,846 $ 25,000,000 Lighthouse Restaurant 2,600 sq. ft. 850 2,125, 000 Sailing Center 3,000 sq. ft. 850 2,550,000 Harbor Department Offices 1,000 sq. ft. 850 850,000 Marina Park Building 24,390 sq. ft. 850 20,731,500 Marina Park marina — 23 slips 23 slips 86,957 2,000,000 Balboa Yacht Basin --172 slips 172 slips 40,698 7,000,000 Subtotal $ 60,256,500 Vessels Lee Appendix Table A.7)_ Recreation Vessels $ 2,592,976 Harbor uessels 550,000 Subtotal $ 3,142,976 Total $ 438,754,118 No value is shown for these facilities because they will be replaced by the planned facilities. Sources: City of Newport Beach; Tables 2.3 and A.1, Willdan Financial Services, 14 WI LLDAN pINnNCIAI BHRVICE3 15-39 City of Newport Beach Development Impact Fee Nexus Study Preliminary Planned Facilities The City preliminarily plans to construct several recreation facilities, including a pool complex, two piers and several improvements to existing community centers. The total cost of the planned facilities is $72.8 million. Table 3.3: Planned Facilities Building Square Cost per Feet Sq. Ft. Total Cost Pool Complex' $ 15,000,000 Ocean Pier: Newport 20,000,000 Ocean Pier: Balboa 15,000,000 Newport Theatre Arts Center 7,950 900 7,155,000 Community Youth Center (CYC) - Grant Howald 5,658 850 4,809,300 Carroll Beek Center 1,500 1,000 1,500,000 West Newport Community Center 11,000 850 9,350,000 Total $ 72,814,300 ' Total estimated cost of this facility is $30 million. $15 million of these costs are assumed to be funded by other sources Source: City of New port Beach. Cost Allocation Existing Level of Service Table 3.4 expresses the City's current recreation facilities level of service in terms of an existing cost per capita, by dividing the replacement cost of the City's existing facilities by the existing service population. This cost per resident is not used in the fee calculation, rather it is shown here for informational purposes only. Table 3.4: Existing Standard Value of Existing Facilities $ 438,754,118 Existing Service Population 82,008 Facility Standard per Resident $ 5,350 Sources: Tables 3.1 and 3.2; Willdan Financial Services. Future Level of Service Table 3.5 shows new development's cost per capita needed to fully fund the planned facilities. The level of service indicated by the planned facility standard is lower than the existing standard. This levO of service drives the fee calculation. This value is calculated by dividing the cost of planned facilities by the increase in population. The resulting cost per capita drives the fee calculation. 15 WILLDAN 15-40 City of Newport Beach Development Impact Fee Nexus Study Table 3.5: Planned Facilities Standard Cost of Planned Facilities $ 72,814,300 Growth in Senate Population 14.099 Facility Standard per Capita $ 5,164 Sources: Tables 3.1 and 3.3; Willdan Financial Services. Fee revenue Projection The City plans to use recreation facilities fee revenue to construct improvements and acquire capital facilities and equipment to add to the system of recreation facilities to serve new development. The City plans to construct the facilities in Table 3.3. By using the planned facilities cost allocation method, the cost of the planned facilities is equal to the projected impact fee revenue for this facility category. Table 3.6 shows the maximum justified recreation facilities fee schedule. The cost per capita is converted to a fee per unit of new development based on dwelling unit densities (persons per dwelling unit). The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit. The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting. In Wilidan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program. 16 1tY< W I f.LDAN - .I FiN�NGl�4 fiENVIGES 15-41 City of Newport Beach Development Impact Fee Nexus Study Table 3.6: Maximum Justified Recreation Facilities Fee Schedule A B C=AxB D=Cx0.02 E=C+D F=E/Average Cost Per Admin Fee per Land Use Capita Density Base Fee' Charge 1,2 Total Fee' S . Ft. Residential Dmllinn Unit $ 5,164 1.61 1 $ 8,314 $ 166 I $ 8,480 $ 4.70 ' Fee per average sized dwelling unit. 2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. 2 Assumes an average of 1,803 square feet per dw elling unit based on an analysis of data for the State of California from the 2019 American Housing Survey. Sources. Tables 2.2 and 3.5; Willdan Financial Services. Mitigation Fee Act Findings The five statutory findings required for adoption of the recreation facilities fees documented in this chapter are presented below and supported in detail by the analysis above. All statutory references are to the Act. Purpose of Fee • Identify the purpose of the fee (§66001(a) (1) of the Act). The recreation facilities fee is designed to ensure that new development will not burden the existing service population with the cost of recreation facilities required to accommodate growth. The purpose of the fees documented in this chapter is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide recreation facilities to serve new development. Use of Fee Revenues + Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001(a)(2) of the Act). Recreation facilities fees, if enacted by the City, would be used to fund expanded recreation facilities to serve new development citywide. Facilities funded by these fees are designated to be located within the City limits. A list of planned recreation projects is included in Table 3.3. Benefit Relationship • Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001(a)(3) of the Act). The City will restrict fee revenue to the acquisition of land, construction of facilities and bu"dings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the residents with new development, who represent the demand for recreation facilities. Using the planned facilities cost allocation methodology outlined in Chapter 1, and the cost per capita standard calculated in Table 3.5, the resulting fees ensure that new development will only fund its fair share of improvements at a level of service that is lower than the existing FkA W I LLDAN %i C:AE SEP-5S 15-42 City of Newport Beach Dovelopment impact Fee Nexus Study level of service. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential use classification that will pay the fees. Burden Relationship + Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001(a)(4) of the Act). New residential development will generate additional population growth. An increase in residents will increase the demand for recreation facilities. Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For the recreation facilities fee, demand is measured by a single facility standard (cost per capita) that can be applied to residential development to ensure a reasonable relationship to the type of development. The service population standards are calculated based upon the number of residents associated with residential development. The standard used to allocate facilities costs to new development is also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population. In this case the planned facilities cost per capita is lower than the existing standard cost per capita, which indicates that new development is not being asked to fund a higher level of service than currently exists in the City. Proportionality • Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act). The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated residential population growth the project will accommodate. Fees for a specific project are based on the project's size. Larger development projects can result in a higher service population resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new development project and the cost of the facilities attributable to that project. 18 W 1 LL©AN �... obi .IL 11H- -:_!I 15-43 4. Police Facilities The purpose of this fee is to ensure that new development funds its fair share of police facilities. A fee schedule is presented based on the system standard of police facilities in the City of Newport Beach to ensure that new development provides adequate funding to meet its needs. Service Population Police facilities serve both residents and businesses. Therefore, demand for services and associated facilities are based on the City's service population including residents and workers. Table 4.1 shows the existing and future projected service population for police facilities. While specific data is not available to estimate the actual ratio of demand per resident to demand by businesses (per worker) for this service, it is reasonable to assume that demand for these services is less for one employee compared to one resident, because nonresidential buildings are typically occupied less intensiveiy than dwelling units. The 0.31-weighting factor for workers is based on a 40-hour workweek divided by the total number of non -work hours in a week (128) and reflects the degree to which nonresidential development yields a lesser demand for police facilities. Table 4.1: Police Facilities Service Population A B AxB=C Weighting Service Persons Factor Population Residents Existing (2024) 82,008 1.00 82,008 New Development 14,099 1.00 14,099 96,107 Total (2045) 96,107 Workers Existing (2024) 72,776 0.31 22,561 New Development 1,500 0.31 465 23,026 Total (2045) 74,276 Combined Residents and Wei hied Workers 104,569 Existing (2024) New Development 14,564 119,133 Total (2045) ' Workers are w eighted at 0.31 of residents based on 40 w ork hours in a week relative to 128 non-w ork hours. Sources: Table 2.1, Willdan Financial Services, 19 W I LLDAN 15-44 City of Newport ,Beach Development Impact Fee !Nexus Study Existing Facility Inventory The City's police facilities inventory is comprised of a police station, police vehicles, animal shelter, equipment and a recently purchased building at 1201 Dove Street. The replacement cost of the existing police station is excluded from the inventory, as it will be replaced by the planned facility. In total, the City owns $39.2 million worth of police facilities. Replacement costs per square foot for existing buildings were identified in the City's Facilities Financial Plan (FFP). Table 4.2 displays the City's existing inventory of police facilities. Table 4.2: Existing Police Facilities Inventory Replacement Quantity Units Unit Cost Cost Police Station 1 Building Land Subtotal Animal Shelter Building Land Subtotal 1201 Dove Street Vehicles (Appendix„Table A.2) 60,000 Sq. Ft. $ - $ 2.96 Acres - 2,320 S q. Ft. $ 850 $ 1,972,000 0.19 Acres 11,324,133 2,151,586 $ 4,123,585 $ 28, 750, 000 $ 5,748,000 Equipment A endix Table A.2 $ 548,000 Total Cost - Existing Facilities Inventory $ 39,169,585 ' No value is shown for this facility because they will be replaced by the planned facildies. Sources: Cily of New port Beach; Tables 2.3 and A.2, Willdan Financial Services. Preliminarily Planned Facilities Table 4.3 displays the preliminarily planned police facility, which is a new police station estimated to cost $92.4 million. The cost per square foot was identified by the City. Table 4.3: Planned Police Facilities Description Quantity Units Unit Cost Total Cost New Police Station 77,000 Square Feet $ 1,200 $ 92,400,000 Total $ 92, 400, 000 Sources: Cily of New port Beach. WILLDAN p�liANVAL seames 20 15-45 City of Newport Beach Development Impact Fee Nexus Study Cost Allocation Existing Level of Service Table 4.4 expresses the City's current police facilities level of service in terms of an existing cost per capita, by dividing the replacement cost of the City's existing facilities by the existing service population. The resulting cost per capita drives the fee calculation. The cost per capita is multiplied by the worker weighting factor to determine the cost per worker. This cost per capita standard does not drive the fee calculation and is included to comply with the requirements of AB 602. Table 4.4: Police Facilities Existinq Standard Value of Existing Facilities $ 39,169,585 Existing Seance Population 104,569 Cost per Capita 374 Facility Standard per Resident $ 374 Facility Standard per Worker' 115 Based on a weighting factor of 0.31. Sources: Tables 4.1 and 4.2. Future Level of Service Table 4.5 shows new development's projected per capita investment in police facilities at the planning horizon. This value is calculated by dividing the cost of existing and planned facilities by the service population at the planning horizon. This cost per capita drives the fee calculation. 21 WILLDAN vau—, SfR-Iles 15-46 City of Newport Beach Development Impact Fee Nexus Study Table 4.5: Police Facilities - System Standard Value of Existing Facilities' $ 39,169,585 Value of Planned Facilities 92,400,000 Total System Value (2045) $ 131,569,585 Future Service Population (204.5) 119,133 Cost per Capita $ 1,104 Facility Standard per Resident $ 1,104 Facility Standard per WorkW 342 Excludes value of existing police building. z Based on a weighting factor of 0.31. Sources: Tables 4.1, 4.2 and 4.3. Fee Revenue Projection The City plans to use police facilities fee revenue to construct improvements and acquire capital facilities and equipment to add to the system of police facilities which will serve new development. The City plans to construct the facilities in Table 4.3. Table 4.6 details a projection of fee revenue, based on the service population growth increment identified in Table 4.1. The cost of the planned facilities not funded by fee revenue represents existing development's share of the facilities and must be funded by any revenue source other than impact fees. The facilities identified in Table 4.3 must be constructed by the planning horizon of this study, or new development will have paid too high a fee. Table 4.6: Revenue Projection - System Standard_ Cost per Capita $ 1,104 Growth in Service Population (2024 - 2045) 14,564 Fee Revenue $ 16,079,000 Net Cost of Planned Facilities $ 92,400,000 Non -Fee Rewnue To Be Identified $ (76,321,000) Sources: Tables 4.1, 4.3 and 4.4. Table 4.7 shows the maximum justified police facilities fee schedule. The City can adopt any fee up to this amount. The cost per capita is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per dwelling unit is converted into a fee per 22 W I L.L.DAN FINANCIAL. 9FRVICes 15-47 City of Newport Beach Development Impact Fee Nexus Study square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit. The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting. In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program. Table 4.7: Maximum Justified Police Facilities Fee Schedule A B C=AxB D=Cx0.02 E=C+D F=E/Average Cost Per Admin Fee per Land Use Capita Densitv Base Feel Charae1, 2 ITotal Fee 5q. Ft.3 Residential - per Dttiellina $ 1,104 1.61 1 $ 1,777 $ Nonresidential - ner 1, 000 So. Ft. Commercial $ 342 2.12 $ 727 Office 342 3.26 1,113 Industrial 342 1.16 396 36 $ 1,813 $ 1.01 15 $ 742 $ 0.74 22 1,135 1.14 8 404 0.40 ' Fee per dwelling unit or per 1,000 square feet of nonresidential building space. 2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated publtc reporting, and fee justification analyses. 3 Assumes an average of 1,803 square feet per dwelling unit based on an analysis of data for the State of California €romthe 2019 American Housing Survey. Sources: Tables 2.2 and 4.5. Mitigation Fee Act Findings The five statutory findings required for adoption of the police facilities fees documented in this chapter are presented below and supported in detail by the analysis above. All statutory references are to the Act. Purpose of Fee 0 Identify the purpose of the fee (§66001(a)(1) of the Act). The police facilities fee is designed to ensure that new development will not burden the existing service population with the cost of police facilities required to accommodate growth. The purpose of the fees documented in this chapter is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide police facilities to serve new development. Use of Fee Revenues • Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital 23 W I LLDAN T, i'R-L 15-48 City of Newport Beach Development Impact Fee Nexus Study improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001 (a) (2) of the Act). Police facilities fees, if enacted by the City, would be used to fund expanded police facilities to serve new development citywide. Facilities funded by these fees are designated to be located within the City limits. A list of planned police facilities projects is included in Table 4.3. Benefit Relationship • Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001 (a) (3) of the Act). The City will restrict fee revenue to the acquisition of land, construction of facilities and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the residents and wormers associated with new development, who represent demand for police facilities. Using the system plan standard cost allocation methodology outlined in Chapter 1, and the cost per capita standard calculated in Table 4.5, the resulting fees ensure that new development will only fund its fair share of improvements, and impact fee revenue will not be used to correct existing deficiencies. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential and non-residential use classifications that will pay the fees. Burden Relationship • Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001(a)(4) of the Act). New residential and nonresidential development will generate additional population growth. An increase in residents and workers will increase the demand for police facilities. Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For the police facilities fee, demand is measured by a single facility standard (cost per capita at the planning horizon) that can be applied across land use types to ensure a reasonable relationship to the type of development. The service population standards are calculated based upon the number of residents associated with residential development and the number of workers associated with non-residential development. To calculate a single, per capita standard, one worker is weighted less than one resident based on an analysis of the relative use demand between residential and non-residential development. See the Service Population section above for a discussion of the worker weighting factor. The standard used to allocate facilities costs to new development is also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population. Proportionality • Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act). The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated residential and nonresidential population growth the development project will accommodate. Fees for a specific project are based on the project's size. Larger development projects can result in a higher service population resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new WILLDAN 24 -.tin- IL iER`:':: r•. 15-49 City of Newport Beach Development Impact Fee Nexus Study development project and the cost of the facilities attributable to that project. See Table 2.2 for the occupancy density assumptions that drive the proportionality of the fees between the land uses included in this study. 25 s WiLLDAN PIWARCIAI SERVICES 15-50 5. Fire/Life Safety Facilities The purpose of the fire impact fee is to fund the fire facilities needed to serve new development. A maximum justified fee schedule is presented based on the system plan standard of fire/life safety facilities per capita. Service Population Fire facilities are used to provide services to both residents and businesses. The service population used to determine the demand for fire facilities includes both residents and workers. Table 5.1 shows the current fire facilities service population and the estimated service population at the planning horizon of 2045. To calculate the service population for fire/life safety facilities, residents are weighted at 1.00. The use of a worker demand factor of 0.44 for workers in Newport Beach is based on an analysis of fire department call data, categorized by land use, in the City from 2023. Average annual incidents at residential land uses were divided by the residential population to yield an average annual incidents -per -capita factor. Dividing average annual incidents at nonresidential areas by average annual employment in the City yielded a comparable per -capita factor. The ratio of the worker per capita factor to the resident per capita factor is the worker demand factor used in the analysis. See Appendix Table A.3 for a detailed worker weighting analysis. Table 5.1: Fire Facilities Service Population A 8 AxB=C Weighting Service Persons Factor Ponulation Residents Existing (2024) New Development Total (2045) 82,008 14,099 96,107 1.00 1.00 82,008 14,099 96,107 Workers 1 Existing (2024) 72,776 0.44 32,021 New Development 1,500 0.44 660 32,681 Total (2045) 74,276 Combined Residents and WeLqhted Workers Existing (2024) 114,029 New Development 14.759 Total (2045) 128,788 E Workers are weighted at 0.44 of residents based on an analysis of fire department call data from 1/1/2023 To 1213112023. See Appendix Table A.1 for more detail. Sources: Tables 2.1 and A.3; Willdan Financial Services. 26 W I LLDAN FINA­AL SERV .S 15-51 City of Newport Beach Development Impact Fee Nexus Study Existing Facility Inventory Table 5.2 summarizes the City's current inventory of land, apparatus and vehicles. Firetlife safety services are provided from eight stations and two lifeguard facilities located throughout the City. Replacement costs for existing buildings were identified in the City's Facilities Financial Plan (FFP). In total, the City owns $199.8 million worth of firellife safety facilities. Table 5.2: Existing Fire Facilities Land and Building Inventory Replacement Quantity Units Unit Cost Cost Land Fire Station #1 1 0.29 Acres $55,669,642 $ 16,144,196 Fire Station #2 0.41 Acres 55,669,642 22,824,553 Fire Station #32 - Acres 23,028,575 - Fire Station #4 0.10 Acres 56,669,642 5,566,964 Fire Station #53 0.36 Acres 23,028,575 8,290,287 Fire Station #6 0.33 Acres 23,028,575 7,599,430 Fire Station #7 1.65 Acres 11,324,133 18,684,819 Fire Station #8 1.09 Acres 55,669,642 60,679,910 Subtotal 4.23 $ 139,790,160 Buildings Fire Station #14 3,423 Sq. Ft. $ - $ - Fire Station #2 11,600 Sq. Ft. 900 10,440,000 Fire Station #34 13,000 Sq. Ft. - - Fire Station #4 4,597 Sq. Ft. 900 4,137,000 Fire Station #5 6,513 Sq. Ft. 900 5,862,000 Fire Station #6 4,436 Sq. Ft. 900 3,992,000 Fire Station #7 11,207 Sq. Ft. 900 10,086,000 Fire Station #8 7,000 Sq. Ft. 900 6,300,000 Lifeguard HQ (Newport Pier)4 2,500 Sq. Ft. - - Lifeguard HQ (CDM) 1,832 Sq. Ft. 900 1,649,000 Subtotal 66,108 $ 42,466,000 Vehicles and Apparatus (AAnandix Table A.4} $ 17,613,550 Total Cost - Existing Facilities Inventory $ 199,769,710 ' Fire station 1 is co -located with the Balboa Library. Land acreage allocated to each use proportionally based on square footage of each use. 2 Fire station #3 is proposed to be moved to better respond to calls for service from existing and new development. Current site is 3.99 acres and w ill be used for other city purposes. 3 Fire station 5 is co -located with the Corona del Mar Library. Land acreage allocated to each use proportionally based on square footage of each use. R No value is included for Fire Station #1, #3 and Lifeguard HQ, since they will be replaced by the planned facilities Sources: City of Newport Beach Fire Departmont; Tables 2.3 and A.4, Wilidan Financial Services. 27 jWt YILLDAN VENANCM SERVICES 15-52 City of Newport Beach Development Impact Fee Nexus Study Planned Facilities Table 5.3 summarizes the planned facilities needed to serve the City through 2045, as identified by the City. The City will replace three existing facilities with facilities that expand the City's capacity to serve new development. The new facilities with be strategically located to ensure that the City can maintain its incident response time. In total, the City has identified $46.3 million worth of capacity expanding fire/life safety facilities. Table 5.3: Planned Fire Facilities Description Quantitv Units Unit Cost Total Cost Fire Station No. 1 Replacement 3,423 Sq. Ft. $ 1,200 $ 4,107,600 Fire Station No. 3 Replacement 13,000 Sq. Ft. 1,200 15,600,000 Fire Station No. 3 Land Acquisition 1 Acres 23,028,575 23,028,575 Lifeguard HQ Replacement 3,000 Sq. Ft. 1,200 3,600,000 Total $ 46, 336,175 Source: aty of New port Beach. Cost Allocation Existing Level of Service Table 5.4 expresses the City's current fire/life safety facilities level of service in terms of an existing cost per capita, by dividing the replacement cost of the City's existing facilities by the existing service population. The cost per capita is multiplied by the worker weighting factor to determine the cost per worker. This cost per capita standard does not drive the fee calculation and is included to comply with the requirements of AB 602. Table 5.4: Existinq Level of Service Value of Existing Facilities $ 199,769,710 Existing Service Population 114,029 Cost per Capita $ 1,751 Facility Standard per Resident $ 1,751 Facility Standard per Worker' 770 Based on a w eighting factor of 0.44, Sources: Tables 5.1 and 5.2. Future Level of Service Table 5.5 shows new development's projected per capita investment in firellife safety facilities at the planning horizon. This value is calculated by dividing the cost of existing and planned facilities by the service population at the planning horizon. This cost per capita drives the fee calculation. -_ 28 WILLDAN 15-53 City of Newport Beach Development Impact Fee Nexus Study Table 5.5: System Standard Cost per Capita Value of Existing Facilities $ 199,769,710 Value of Planned Facilities 46.336.175 Total System Value (2045) $ 246,105,885 Future Service Population (2045) 128,788 Cost per Capita $ 1,911 Facility Standard per Resident $ 1,911 Facility Standard per Worker 841 Based on a weighting factor of 0.44. Sources: Tables 5.1, 5.2 and 5.3. The City plans to use fire/life safety facilities fee revenue to construct impr$vements and acquire capital facilities and equipment to add to the system of fire/life safety facilities to serve new development. The City plans to construct the facilities in Table 5.3. Table 5.6 details a projection of fee revenue, based on the service population growth increment identified in Table 5.1. The cost of the planned facilities not funded by fee revenue represents existing development's share of the facilities and can be funded by any revenue source other than impact fees. The facilities identified in Table 5.3 must be constructed by the planning horizon of this study, or new development will have paid too high a fee. Table 5.6: Projected Fee Revenue Cost per Capita $ 1,911 Growth in Service Population (2023- 2045) 14,759 Fee Rexenue $ 28,204,000 Net Cost of Planned Facilities $ 46,336,175 Non -Fee Revenue To Be Identified $ (18,132,175) Sources: Tables 5.1, 5.3 and 5.4. Table 5.7 shows the maximum justified firellife safety facilities fee schedule. The cost per capita is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per average sized single family, and multifamily dwelling unit is converted into a IAII LLDAN 29 FlN0.NG3Al ¢E@VICES 15-54 City of Newport Beach Development Impact Fee Nexus Study fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of each type of unit. The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting. In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program. Table 5.7: Fire/Life Land Use Residential Dwellin Unit $ Fety Facilities Fee Schedule A B C=AxB D=CxC.02 Cost Per Admin Capita De E=C+D F=E/Average Fee per Base Feel Charge'' 2 � Total Fee 1,911 1.61 I $ 3,076 $ Nonresidential - per 1 000 5 . Ft. Commercial $ 841 Office 841 Industrial 841 2.12 $ 1,786 $ 3.26 2,737 1.16 973 61 1 $ 3,137 $ 35 $ 1,821 $ 54 2,791 19 992 Ft.3 1.73 1.82 2.79 0.99 Fee per dwelling unit or per 1,000 square feet of nonresidential building space. z Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. 'Assumes an average of 1,803 square feet per dw elling unit based on an analysis of data for the State of California from the 2019 American Housing Survey. Sources: Tables 2.2 and 5.5. Mitigation Fee Act Findings The five statutory findings required for adoption of the fire/life safety facilities fees documented in this chapter are presented below and supported in detail by the analysis above. All statutory references are to the Act. Purpose of Fee + Identify the purpose of the fee (§66001(a)(1) of the Act). The fire/life safety facilities fee is designed to ensure that new development will not burden the existing service population with the cost of fire/life safety facWties required to accommodate growth. The purpose of the fees documented in this chapter is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide fire/life safety facilities to serve new development. Use of Fee Revenues + Identify the use to which the fees will be put. If the use is financing facilities, the facilities *11W 1 LLDAN 30 15-55 City of Newport Beach Development impact Fee Nexus Study shall be identified. That identification may, but need not, be made by reference to a capital improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001 (a) (2) of the Act). Fire/life safety facilities fees, if enacted by the City, would be used to fund expanded fire/life safety facilities needed to serve new development citywide. Facilities funded by these fees are designated to be located within the City limits. A list of planned fire/life safety projects is included in Table 5.3. Benefit Relationship + Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001(a)(3) of the Act). The City will restrict fee revenue to the acquisition of land, construction of facilities and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the flees are expected to provide a citywide network of facilities accessible to the residents and workers associated with new development, who represent the demand for fire/life safety facilities. Using the system plan cost allocation methodology outlined in Chapter 1, and the cost per capita standard calculated in Table 5.5, the resulting fees ensure that new development will only fund its fair share of improvements at a level of service that is lower than the existing level of service. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential and non-residential use classifications that will pay the fees. Burden Relationship + Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001(a)(4) of the Act). New residential and nonresidential development will generate additional population growth. An increase in residents and workers will increase the demand for fire/He safety facilities. Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For the fire/life safety facilities fee, demand is measured by a single facility standard (cost per capita) that can be applied to residential development to ensure a reasonable relationship to the type of development. The service population standards are calculated based upon the number of residents associated with residential development and the number of workers associated with non-residential development. To calculate a single, per capita standard, one worker is weighted less than one resident based on an analysis of the relative use demand between residential and non-residential development. See the Service Population section above for a discussion of the worker weighting factor. The standard used to allocate facilities costs to new development is also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population. Proportionality • Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act). The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated residential and nonresidential population growth the project will accommodate. Fees for a specific project are based on the project's size. Larger development projects can result in a higher service population 31 WILLDAN 15-56 City of Newport Beach Development Impact Fee Nexus Study resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new development project and the cost of the facilities attributable to that project. See Table 2.2 for the occupancy density assumptions that drive the proportionality of the fees between the land uses included in this study. IWILLDAN FEHANCIAI 9LNYICES 32 15-57 6. Water Capacity This chapter documents a reasonable relationship between new development and a water capacity charge to fund water facilities that serve new development. It uses a buy -in approach to allocate the cost of excess capacity in the system to new development. While the City generally has sufficient water capacity to accommodate new development, additional site -specific water facilities improvements may be required as a condition of approval for a development project. Water Demand Estimates of new development and its consequent increased water demand provide the basis for calculating the water facilities fee. The need for water facilities improvements is based on the water demand placed on the system by development. A typical measure of demand is the flow generation rate, expressed as the number of gallons per day generated by a specific type of land use. Flow generation rates are a reasonable measure of demand for the City's system of water improvements because they represent the average rate of demand that will be placed on the system per land use designation. Table 6.1 shows the average flow generation factors by land use category identified in the City's water master plan. Table 6.1: Water Demand bv Land Use Average Flow Generation per Flow DU or 1,000 Sq. Land Use Type Generation' Densityz Ft. Residential Dv&llinq Unit Nonresidential - per 1, 000 Sq. fit. Commercial Office Industrial 240.00 1,757 13.07 134.45 2,000 21.78 91.83 1,000 8.71 114.78 ' Gallons per acre per day. 2 1,000 square feet per acre for nonresidential. Nonresidential densities are calculated using floor -area -ratios or 0.3 for comrnerclai, 0.5 for office and 0.2 for industrial. Sources: City of New port Beach 2019 Water Master Plan, Table 4-S; Willdan Financial Services. Current Water System Asset Valuation In this case, Replacement New Cost Less Depreciation (RCNLD) is the appropriate method to determine the current value of the water systems. RCNLD is a commonly used method, and it is often preferred to alternative methods such as Original Cost Less Depreciation (OCLD), Original Cost (OC), and Replacement Cost (RC) because of its better reflection of the system's value in today's dollars. Unless the systems have depreciated significantly due to lack of replacement and repair, RCNLD is more defensible because the replacement cost is inflation -adjusted to recover the cost of replacing that capacity in current dollars. RCNLD also accounts for depreciation and consequently addresses the fact that the system reflects its current condition. 33 W I LLDAN ­1, _. 15-58 City of Newport Beach Development Impact Fee Nexus Study The City provided original cost records for the fixed assets of the utility systems as of 2023. Original costs were adjusted to replacement cost new using the Construction Cost Index (CCI). Replacement cost new is the estimated expected cost of a similar facility constructed today. The CCI is based on an average of costs among 20 cities and is published by Engineering News - Record (ENR). Accumulated depreciation was calculated based on the replacement cost of each asset, the year it went in service and estimates of the useful life of that asset. Table 6.2: Water Facilities Replacement Replacement Accumulated Cost New Less Asset Category Original Cost Cost New Depreciation Depreciation Equipment $ 54,905 Fire Hydrants 728,025 Pumps 2,658,908 Reservoirs 40, 248,160 Water Lines 96,111,565 Water Meters 4,041,124 Water Reducers 82,094 Wells _ 3,488,219 Total $ 147,412,990 $ 62,297 $ 28,808 $ 33,489 1,509,527 1,509,527 - 11,883,927 3,471,777 8,412,150 579, 389, 729 406, 090, 901 174,298, 828 268, 632, 525 118,198, 311 150,434, 214 8,379,086 8,379,086 - 170,218 131,635 38,583 8,006,121 2,667,697 5,338,424 $ 878,033,429 $ 539,477,742 $ 338,565,687 Sources: New port Beach Capital Asset Schedule, 2023; ENR Construction Cost Index; Willdan Financial Services. perGallon per M' Every impact fee consists of a dollar amount, representing the value of facilities, divided by a measure of demand. In this case, buy -in fees are first calculated as the adjusted system value per gallon per day (GPD). Then these amounts are translated into fees per housing unit (fee per unit) and employment space (fee per 1,000 square feet) by multiplying the cost per GPD by the flow generation rate for each land use category. These amounts become the fee schedule. The calculation of the buy -in fee per GPD for water facilities is shown in Table 6.3. The City provided the sewer system's flow capacity, which is 50.8 million gallons per day. City staff confirmed that the water system has sufficient capacity to accommodate new development within the planning horizon. The adjusted system value divided by the total capacity of the system yields the facilities impact fee per gallon per day of $6.66 for water facilities. Table 6.3: Fee per GPD Total System Value $ 338,666,687 System Flow Capacity (Gallons per Day) 60,800,000 Fee per GPD $ 6.66 Sources: Tables 6.1 and 6,2. WIL.LDAN ' PIUANCIAI SERVICES 34 15-59 City of Newport Beach Development Impact Fee Nexus Study The maximum justified fee for water capacity is shown in Table 6.4, The fee per GPD is converted to a fee per unit of new development based on the flow generation factors shown in Table 6.1 The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting. In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program. Table 6.4: Maximum Justified Water Facilities Fee Schedule A B IC=AxB b=CXO.02 EEC+D FEE/Average Cost Par GPD GPD Base Admin Fee per arge Fee' Ch1, z Total Feel 5q. Ft.3 Residential Dwelling Unit $ 6.66 240.00 1 $ 1,698 $ Nonresidential - per 1, 000 Sq. Ft. Commercial $ 6.66 134.45 $ 895 $ Office 6.66 91.83 611 Industrial 6.66 114.78 764 31 1 $ 1,629 $ 0.90 17 $ 912 $ 0,91 12 623 0.62 15 779 0.77 Fee per average sized dwelling unit or per 1,000 square feet of nonresidential building space. ' Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs Including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. 'Assumes an average of 1,803 square feet per dwelling unit based on an analysis of data for the State of California from the 2019 American Housing Survey. Sources: Tables 6.1 and 6.3. W I LLDAN 35 FINANCIAL 4EGVICES 15-60 7. Sewer Capacity This chapter documents a reasonable relationship between new development and a sewer capacity charge to fund sewer facilities that serve new development. It uses a buy -in approach to allocate the cost of excess capacity in the system to new development. While the City generally has sufficient sewer capacity to accommodate new development, additional site -specific sewer facilities improvements may be required as a condition of approval for a development project. Sewer Demand Estimates of new development and its consequent increased sewer demand provide the basis for calculating the sewer facilities fee. The need for sewer facilities improvements is based on the sewer demand placed on the system by development. A typical measure of demand is the flow generation rate, expressed as the number of gallons per day generated by a specific type of land use. Flow generation rates are a reasonable measure of demand on the City's system of sewer improvements because they represent the average rate of demand that will be placed on the system per land use designation. Table 7.1 shows the average flow generation factors by land use category used in this analysis. Sewer flow generation factors were estimated by applying a "water sewer flow factor" which represents the percentage of water flow generation that is ultimately returned to the sewer system. The average water flow factors were identified in Table 6.1. Table 7.1: Sewer Demand bv Land Use Water Average Flow Water Flow Sewer Generation Generation Flow per DU or Land Use Type Factor' Factor2 1,000 Sq. Ft. Residential Dulling unit 240.00 0.66 158.40 Nonresidential - per 1, 000 Sq. Ft. Commercial 134.45 0.81 108.90 Office 91.83 0.87 79.89 Industrial 114.78 0.67 76.90 ' Gallons per unit per day for residential. Gallons per 1,000 building square feet per day for nonresidential. See Table 6.1. 2 Assumed percentage of water flow generation that is ultimately returned to the sewer system. Sources: City of Newport Beach 2019 Water Master Plan, Table 4-8; Wlldan Financial Services. Current Sewer System Asset Valuation In this case, Replacement New Cost Less Depreciation (RCNLD) is the appropriate method to determine the current value of the sewer systems. RCNLD is a commonly used method, and it is often preferred to alternative methods such as Original Cost Less Depreciation (OCLD), Original Cost (OC), and Replacement Cost (RC) because of its better reflection of the system's value in today dollars. Unless the systems have depreciated significantly due to lack of replacement and repair, RCNLD is more defensible because the replacement cost is inflation -adjusted to recover 36 wlW I LLDAN 15-61 City of Newport Beach Development Impact Fee Nexus Study the cost of replacing that capacity in current dollars. RCNLD also accounts for depreciation and consequently addresses the fact that the system reflects its current condition. The City provided original cost records for the fixed assets of the utility systems as of 2023. Original costs were adjusted to replacement cost new using the Construction Cost Index (CCI). Replacement cost new is the estimated expected cost of a similar facility constructed today. The CCI is based on an average of costs among 20 cities and is published by ENR. Accumulated depreciation was calculated based on the replacement cost of each asset, the year it went in service and estimates of the useful life of that asset. Table 7.2 summarizes the City's current sewer system asset valuation. Table 7.2: Current Sewer System Asset Valuation Replacement Cost Replacement Accumulated New Less Original Cost Cost New Depreciation Depreciation Sever Facilities Pump Stations $ 10,255,603 $ 71,377,176 $ 24,344,106 Sewer Lines/Mains 38,583,727 80,001,600 80,001,600 Total $ 48,839,330 $ 151,378,776 $ 104,345,707 47, 033, 070 47, 033,070 Sources; New part Beach Capital Asset Schedule, 2023; BdR Construction Cost Index; Wildan Financial Services. Every impact fee consists of a dollar amount, representing the value of facilities, divided by a measure of demand. In this case, buy -in fees are first calculated as the adjusted system value per gallon per day (GPD). Then these amounts are translated into fees per housing unit (fee per unit) and employment space (fee per 1,000 square feet) by multiplying the cost per GPD by the flow generation rate for each land use category. These amounts become the fee schedule. The calculation of the buy -in fee per GPD for sewer facilities is shown in Table 7.3. The City provided the sewer system's flow capacity, which is 7.44 million gallons per day. City staff confirmed that the sewer system has sufficient capacity to accommodate new development within the planning horizon. The adjusted system value divided by the total capacity of the system yields the facilities impact fee per gallon per day of $6.32 for sewer facilities. Table 7.3: Fee per GPD Total System Value $ 47,033,070 System Flow Capacity (Gallons per Day) 7,440,000 Fee per GPD $ 6.32 Sources: City of New port Beach; Table 7.2, Willdan Financial Services. The maximum justified fee for sewer facilities is shown in Table 7.4. The fee per GPD is converted to a fee per unit of new development based on the flow generation factors shown in 37 WILLDAN i FI&ANCIAL SERVICES 15-62 City of Newport Beach Development Impact Fee Nexus Study Table 7.1. The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit. The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting. In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program. Table 7.4: Maximum Justified Sewer Capacity Fee Schedule A B C=AxB D=CX0.02 E=C+D FEE/Average Cost Per Base Admin Fee per Sq. GPD GPD Fee' Char el, 2 Total Feel Ft.3 Residential per D_mIlina Unit 3 Nonresidential - per,1.000 Sq. Ft. Commercial Office Industrial $ 6.32 158.40 $ 1,001 $ $ 6.32 108.90 $ 688 $ 6.32 79.89 504 6.32 76,90 486 20 $ 1,021 $ 0.66 13 $ 701 $ 0.70 10 514 0.51 9 495 0.49 Noto: GPD= Gallons per Day. -- Fee per average sized dw elling unit, per 1,000 square feet of nonresidential building space. z Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. a Assumes an average of 1.803 square feet per dw elling unit based on an analysis of data for the State of California from the 2019 American (-lousing Survey. Sources: City of Newport Beach; Tables 7,1 and 7.3, Willdan Financial Services. W I LLDAN 38 FINANCIAL SERVICES 15-63 8. AB 602 Requirements On January 1, 2022, new requirements went into effect for California jurisdictions implementing impact fees. Among other changes, AB 602 added Section 66016.5 to the Government Code, which set guidelines for impact fee nexus studies. Four key requirements from that section which concern the nexus study are reproduced here: ■ 66016.5. (a) (2) When applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate. ■ 66016.5. (a) (4) If a nexus study supports the increase of an existing fee, the local agency shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee. ■ 66016.5. (a) (5) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A local agency that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development. ■ 66016.5. (a) (6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study. Compliance with AB 602 The following sections describe this study's compliance with the new requirements of AB 602. 66016.5. (a) (2) - Level of Service For fees calculated under the buy -in methodology, the fees are calculated such that new development funds facilities at the existing level of service. Fees calculated using the planned facilities standard represent a lower level of service than currently exists. For fees calculated using the system plan methodology, the fees were calculated such that new development would fund its fair share of an increased level of service. This is contingent on existing development funding its share of the higher level of service through any funding source other than impact fees. All fees in this analysis use one of these approaches. The existing level service in terms of the existing facility cost per capita, or cost per gallon per day is shown in each corresponding chapter. 66016.5. (a) (4) — Review of Original Fee Assumptions This is the first impact fee study conducted by the City of Newport Beach, so there are no original fee assumptions to review. 6016.5. (a) (5) — Residential Fees per Square Foot Impact fees for residential land uses are calculated per square foot for all fee categories and comply with AB 602. 66016.5. (a) (6) — Capital Improvement Plan A description of the planned facilities that the City could fund with impact fee revenue is included in each chapter in this report. Adoption of this nexus study would approve the planned facilities identified herein as the Capital Improvement Plan for this nexus study. The City will select which I LL.DAN 39 15-64 City of Newport Beach Development Impact Fee Nexus Study particular projects fund with existing impact fee fund balances and projected fee revenue annually through its budgeting and CIP process. 40 W1LWAN 15-65 9. Implementation Impact Fee Program Adoption Process Impact fee program adoption procedures are found in the California Government Code section 66016. Adoption of an impact fee program requires the City Council to follow certain procedures including holding a public hearing. Data, such as an impact fee report, must be made available at least 10 days prior to the public hearing. The City's legal counsel should be consulted for any other procedural requirements as well as advice regarding adoption of an enabling ordinance and/or a resolution. After adoption there is a mandatory 60-day waiting period before the fees go into effect. Inflation Adjustment The City can keep its impact fee program up to date by periodically adjusting the fees for inflation. Such adjustments should be completed regularly to ensure that new development will fully fund its share of needed facilities. We recommend that the CCCI be used for adjusting fees for inflation. The CCCI is based on data from ENR and is aggregated and made available for free by the State of California. The fee amounts can be adjusted based on the change in the index compared to the index in the base year of this study (2024). While fee updates using inflation indices are appropriate for periodic updates to ensure that fee revenues keep up with increases in the costs of public facilities, the City will also need to conduct more extensive updates of the fee documentation and calculation (such as this study) when significant new data on growth forecasts and/or facility plans become available. Note that decreases in index value will result in decreases to fee amounts. Reporting Requirements The City will comply with the annual and five-year reporting requirements of the Mitigation Fee Act. For facilities to be funded by a combination of public fees and other revenues, identification of the source and amount of these non -fee revenues is essential. Identification of the timing of receipt of other revenues to fund the facilities is also important. There is no time limit by which impact fee revenue must be spent. However, if the City is accruing impact fee revenue to fund new development's share of a project, then it must make certain findings with respect to unexpended impact fee fund balances after five years. Among other requirements, the five-year report requires the City to "Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements," and to "Designate the approximate dates on which supplemental funding is expected to be deposited into the appropriate account or fund."1 On October 13, 2023 AB 516 was signed into law by the Governor of California, and went into effect on January 1, 2024. The bill requires local agencies to: + Include information on projects noted in prior reports and whether construction began on the approximate date noted in the previous report. 1 California Government Code § 66001(d). 41 W I LLDAN 15-66 City of Newport Beach Development Impact Fee Nexus Study • Explain the reason for any delay in the start of the project and provide a new approximate date construction will begin. • Identify the number of people or entities that receive refunds of Mitigation Fee Act fees. The bill also requires local agencies to inform people paying mitigation fees that they: • Can request an audit to determine if the fees charged by a local agency are more than the amount of money needed to cover the cost of the public improvements. • Can receive information by mail about when the local agency will meet to review its annual Mitigation Fee Act report. • Can access and review mitigation fee information on the local agency's website, and how to do so. Table 9.1 summarizes the annual and five-year reporting requirements identified in the Act. 42 W I LLDAN pINAHCIAt 4EpwCES 15-67 City of Nowport beach Development lmpecf Fee Nexus Study Table 9.1: Annual and Five -Year Reportina Requirements CA Gov't Code Recommended Section Timing Reporting Requirements' Fee Adjustment (A) Identify the purpose to which the fee is to be put. (B) Demonstrate a reasonable rolationshlp between the fee and the purpose The fifth fiscal year following the for which it is charged. 66001.(d) first deposit Into the account or (C) Identify all sources and amounts of funding anticipated to complete Comprehenslw fund, and every five years financing In incomplete improvements. Update thereafter (D) Designate the approximate dates on which supplemental funding Is expected to be deposited into the appropriate account or fund. (A) A brief description of the typo of The in the account or fund. (B) The amount of the W. (C) The beginning and ending balance of the account or fund. (D) The amount of the fees collected and the interest earned. (E) An Identification of each public Improvement on which fees were expanded Including share funded by fees. (F) (1) An ldentiflcatton of an approximate date by which the construction of the public Improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an Within lao days afterthe last Incomplete public Improvement and the public Improwment remains Inflationary 66006. (b) day of each fiscal year incomplete. (II) An Identification ofeach public improvement identified In a previous report Adjustment pursuant to clause (1) and whether construction began on the approximate date noted in the prelAous report. (111) For a project Identified pursuant to clause (11) forwhich construction did not commence by the approximate date provided in the prevous report, the reason for the delay and a revised approximate dale that the local agency will commence construction. (G) A description of any potential interfund transfers. (H) The amount of refunds made (if any). ' Edited for brevity. Refer to the government code for full description. Sources: Uftrnla Government Code §66001 and §66006. 43 15-68 City of Newport Beach Development Impact Fee Nexus Study Programming Revenues and Projects with the CIF' The City maintains a Capital Improvement Program {CIP} to plan for future infrastructure needs. The CEP identifies costs and phasing for specific capital projects. The use of a CIP in this manner documents a reasonable relationship between new development and the use of those revenues. The City may decide to alter the scope of the planned projects or to substitute new projects if those new projects continue to represent an expansion of the City's facilities and provide benefit to new development. If the total cost of facilities varies from the total cost used as a basis for the fees, the City should consider revising the fees accordingly. 44 W I LLDAN FINANCIAL SHHVICES 15-69 Appendix Appendix Table A.1: Marine Vessel Inventory Tota I Replacement Tvne Count Unit Cost Cost Recreation Vessels RS Venture RS Quest WD Schock Lido 14 Waterline J22 Zodiak Pro Classic 420 Single Ocean Kayak Doubel Ocean Kayak Subtotal Harbor Vessels Boston Whaler, 19' Chislett, 21' Subtotal Total Source: City of Newport Beach. 2 $ 42,390 $ 84,780 12 102,420 1,229, 040 3 98,800 296,400 6 120,000 720,000 2 43,026 86,052 8 3,144 25,152 16 9,472 151,552 49 $ 2,592,976 1 $ 200,000 $ 200,000 2 175,000 350,000 3 $ 550,000 52 $ 3,142, 976 45 WILLDAN • :Fu.irt5 15-70 City of Newport Beach Development Impact Fee Nexus Study Appendix Table A.2: Police Vehicle and Equipment Invento REPLACEMENT UNIT iE YEAR MAKE MODEL ASSIGN DESCRIPTION F-9 CATEGORY COST 1 1804 PlainfDetecthe $ 65,000 2 1805 2020 FORD EXPLORER COP SUV SUV 35,000 3 1820 2019 FORD EXPLORER COP Volunteers SUV 36,000 4 1821 2019 GMC CANYON COP Volunteers PlckupTruck 28,000 5 1634 2009 FORD RANGER COP Volunteers Pickup Truck 28,000 6 1842 2016 Freightliner 3500 SPRINTER COP Command Post Van 176,000 7 1844 Plain/Delective 46,000 8 1855 2007 TOYOTA CAMRY COP Sedan 38,000 9 1856 PtalnlDetactive 38,000 10 1876 2007 NISSAN QUEST COP Van 35,000 11 1898 2020 FORD 360 PASSENGER COP Explorers' Van Van 52,000 12 1917 PlairVDetecllve 40,000 13 1919 PlairdDetecthe 50,000 14 1031 2005 FORD ESCAPE SSD Mall Vehicle SUV 26,000 15 1935 PlairVDotective 50,000 16 1937 2017 DODGE DURANGO SSD SUV 36,000 17 1940 2009 NISSAN TITAN SSD 4X2 Pickup Pickup Truck 36,000 18 1941 2019 DODGE DURANGO SSD SUV 36,000 19 1967 2019 FORD F-250 SSD 4WD Pickup Pickup Truck 45,000 20 1977 2008 CHEVY SILVERADO SSD 4WD Pickup Pickup Truck 45,000 21 2001 2021 FORD EXPLORER PATROL Patrol SupvSUV Patrol Vehicle 57,000 22 2004 2016 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 23 2008 2014 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 24 2010 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 25 2017 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 26 2022 2018 FORD EXPLORER PATROL PatroISUV Patrol Vehicle 64,000 27 2024 2018 FORD EXPLORER PATROL Patrol8UV Patrol Vehicle 144,000 28 2025 2018 FORD EXPLORER PATROL PatrolSUV Patrol Vehicle 64,000 29 2027 2018 CHEVY SILVERADO PATROL 4WD Patrol Truck Patrol Vehicle 62,000 30 2028 2020 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 53,000 31 2029 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 32 2030 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 33 2032 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 34 2040 2012 FORD CROWN VIC PATROL Patrol LT Patrol Vehicle 64,000 35 2041 2019 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 36 2042 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 37 2043 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 38 2044 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 39 2045 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 40 2046 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 41 2047 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 67,000 42 2051 PlainlDeteothm 45,000 43 2053 2019 FORD EXPLORER PATROL Patrol K-9 SUV Patrol Vehicle 64,0D0 44 2054 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 45 2058 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 46 2062 2014 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 04,000 47 2065 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 48 2066 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 49 2067 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 50 2069 2019 FORD EXPLORER PATROL Patrol SW Patrol Vehicle 64,000 51 2070 Plaln/Delective 50,000 52 2072 PlalnfDolective 50,000 53 2076 2019 FORD EXPLORER PATROL Patrol K-9 SUV Patrol Vehicle 64,000 54 2080 2019 LOGAN CARRIER PATROL Horse Trailer Trailer 20,000 55 2081 2014 LENCO BEAR CAT PATROL SWAT Armored VehICIE Specialty Vehicle 350,000 56 2062 2003Froighlliner VAN PATROL SWATVan Heavy Truck 275,000 57 2084 2018 LOGAN CROSSFIRE PATROL Morse Trailer Trailer 20,000 58 2085 2020 FORD F-150 PATROL 4WD Patrol Truck Patrol Vehicle 62,000 59 2086 2020 FORD F-150 PATROL 4WD Patrol Truck Patrol Vehicle 62,000 60 2087 2013 FORD E-350 PATROL Transport Van Van 70,000 61 2089 2019 FORD F-150 PATROL 4WD Patrol Truck Patrol Vehicle 62,000 62 2095 2014 KAWASAKI BRUTEFORCE 30 PATROL Beach ATV Beach ATV 6,000 63 2096 2014 KAWASAKI BRUTEFORCE 30 PATROL Beach ATV Beach ATV 6,000 64 2098 2020 POLARIS RANGER CREW PATROL Beach UTV Beach ATV 23,000 65 2122 2016 BMW R120ORTP TRAFFIC Motorcycle Police Motorcycle 34,000 66 2123 2016 BMW R120ORTP TRAFFIC Motorcycle Pollee Motorcycle 34,000 67 2127 2016 BMW R120ORTP TRAFFIC Motorcycle Police Motorcycle 34,000 68 2128 2016 BMW R1200RTP TRAFFIC Motorcycle Police Motorcycle 34,000 69 2129 20t6 BMW 131200RTP TRAFFIC Motorcycle Police Motorcycle 34,000 70 2131 20t7 FORD EXPLORER DET DC PlainlDetectivB 45,000 71 2133 2009 CHEVY SILVERADO 2WD TRAFFIC Comm Enforcement PlckupTruck 62,000 72 2138 2014 FORD EXPLORER TRAFFIC Traffic Investigators PlalnfDetective 55,000 46 YY° I LLDAN FINANCIAL SEkV M 15-71 City of Newport Beach Development Impact Fee Nexus Study Appendix Table A.2: Police Vehicle and Equipment Inventory Continued UNIT N YEAR MAKE MODEL ASSIGN DESCRIPTION F-9 CATEGORY REPLACEMENT COST 73 2130 PlairdDetecti%e 40,000 74 2144 Sedan 46,000 75 2147 2016 TOYOTA TACOMA TRAFFIC Parking Control Traffic Vehicle 38,000 76 2149 2015 TOYOTA TACOMA TRAFFIC Parking Control Traffic Vehicle 38,000 77 2150 20W TOYOTA TACOMA TRAFFIC Parking Control Traffic Vehicle 38,000 78 2151 2016 TOYOTA TACOMA TRAFFIC Parking Control Traffic Vehicle 38,000 79 2152 2021 TOYOTA TACOMA TRAFFIC Parking Control Traffic Vehicle 38,000 80 2160 2016 CHEVY COLORADO TRAFFIC Animal Control 4WD Traffic Vehicle 43,000 81 2162 2017 CHEVY COLORADO TRAFFIC Animal Control 4WD Traffic Vehicle 43,000 82 2170 2017 CHEVY COLORADO TRAFFIC Animal Control 4WD Traffic Vehicle 43,000 83 2171 2019 BMW R125ORT TRAFFIC Motorcycle Police Motorcycle 34,0D0 84 2172 2019 BMW R125ORT TRAFFIC Motorcycle Police Motorcycle 34,000 85 2173 2019 BMW R125ORT TRAFFIC Motorcycle Police Motorcycle 34,000 86 2174 2020 BMW R125ORT TRAFFIC Motorcycle Police Motorcycle 34,000 87 2175 2020 BMW R125ORT TRAFFIC Motorcycle Police Motorcycle 34,000 88 2176 2020 BMW R125ORT TRAFFIC Motorcycle Police Motorcycle 34,000 89 2177 2020 BMW R125ORT TRAFFIC Motorcycle Police Motorcycle 34,000 90 NEW 2021 BMW R125ORT TRAFFIC Motorcycle Police Motorcycle 40,000 91 NEW 2023 BMW R125ORT TRAFFIC Motorcycle Police Motorcycle 40,000 92 NEW 2023 BMW R125ORT TRAFFIC Motorcycle Police Motorcycle 40,000 93 2178 2013 HAULMARK PASSPORT TRAFFIC Enclosed ATV Trailer Trailer 20,000 94 2179 2020 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 34,000 95 2180 2009 LOOK TRAILER TRAFFIC Explorers' Box Trailer Trailer 16,000 96 2181 2016 KENDON TRAILER TRAFFIC Stand-up Motor hauler Trailer 5,000 97 2193 2008 ATS RADAR TRAFFIC Radar Trailer Trailer 20,000 98 2194 2014 ATS RADAR TRAFFIC Radar Trailer Trailer 20,000 99 2226 PlaiNDetective 38,000 100 2227 PlainlDetective 38,000 101 2228 PlairdDetective 40,000 102 2229 PlairdDetective 38,000 103 2259 PlairdDetecthe 40,000 104 2262 Plain/Detective 40,000 105 2265 PlairkfDetective 40,000 106 2267 PlalnfDetective 40,000 107 2271 PlainfDetective 40,000 108 2272 Plain/Detective 40,000 109 2275 2014 FORD EXPLORER DET CSI SUV 40,000 110 2278 2014 FORD EXPLORER DET CSI SUV 40,000 111 2286 2011 FORD E-350 DET Transport Van Van 70,000 112 2287 PlainfDetective 38,000 113 2288 PlairdDetective 40,000 114 2289 Plain/Detective 40,000 SUBTOTAL -VEHICLES $ 5,748,000 Equipment 115 In -Car Computers $ 200,000 116 Gas Masks 105,000 117 Patrol Helmets 75,000 118 Patrol Rifles 78,000 119 Automated External Defibrillators 90,000 SUBTOTAL-EQUIPMEN $ 548,000 Total $ 6,298,000 Source: City of Newport Beach. 47 WI LL-DAN FIHhNCIhr SE0.VI�F$ 15-72 City of Newport Beach Development Impact Fee Nexus Study Appendix Table A,3: Fire Facilities Worker Weighting Factor Population or Category Calls for Service Employees Calls perCapita Residential 7,307 82,008 0.09 Nonresidential 2,871 72,776 0.04 Other' 1,555 Worker Weighting Factor 0.44 1 Nonresidential calls per capita / residential calls per capita. 2 "Other" calls are those that cannot be classified as residential or nonresidentlal-serving calls. Sources: New port Beach Fire Department; Wilidan Financial Services. W WILLDAN -- :.-' FINANCIAL SERVICES 48 15-73 City of Newport Beach Development Impact Fee Nexus Study Appendix Table AA: Fire/Marine Vehicle, Apparatus and Equipment Inventory Estimated Org Name Eq # Description Model Yet Manufacturer 1 Model 11) Replacement Cost RrelMadne 2844 _ SEAWATCH 3 - 29.5 FT RESCUE BOAT 1986 NOREK T58 $ 650,000 Fire/Marine 2842 SEAWATCH 1 - 29.6 FT RESCUE BOAT 2003 CRYSTALINER RESCUE 65D,D09 Fire/Madno 2876 TRAILER WATERCRAFT 2003 ZIEMAN G26 3,000 FlrelMarine 2840 SEAWATCH 2 - 29.5 FT RESCUE BOAT 2007 CRYSTALINER RESCUE 650,000 FlrelMarine 2866 QUAD 2017 YAMAHA YXC70VPSHL 22,000 Fire/Marine, 2873 YAMAHA WAVE RUNNER 2014 YAMAHA FA1800-N FX 18,000 FlrelMarine 2874 YAMAHA WAVE RUNNER 2014 YAMAHA FA1800-N FX 18,000 FlWMerine 2845 SUV 4X4 2015 CHEVROLET TAHOE 46,000 F1relMarine 2897 114 TON 4X4 PICK UP 4 DOOR 2017 TOYOTA TACOMA 45,000 FirelMarine 2898 114 TON 4X4 PICK UP 4 DOOR 2017 TOYOTA TACOMA 45,000 Fire/Marine 2896 114 TON 4X4 PICK UP 4 DOOR 2017 TOYOTA TACOMA 45,000 FirelMarine 2833 114 TON 4X4 PICK UP TRUCK 2018 TOYOTA TACOMA 44,000 FIrelMarine 2605 114 TON 4X4 PICK-UP TRUCK 20t9 TOYOTA TACOMA 45,000 FirafMadne 2BO3 114 TON 4X4 PICK-UP TRUCK 2019 TOYOTA TACOMA 45,000 FirelMadne 2804 114 TON 4X4 PICK-UP TRUCK 2019 TOYOTA TACOMA 46,000 FirelMadne 2802 114 TON 4X4 PICK-UP TRUCK 2019 TOYOTA TACOMA 45,000 Fire/Marine 2801 TAHOE 4X4 SUV 2018 CHEVROLET TAHOE 46,000 Fire/Marine 2830 FORD EXPEDITION 4X4 2020 FORD EXPEDITION - FirelMarine 2806 114 TON 4X4 PICK-UP TRUCK 2020 TOYOTA TACOMA FirelMarins 2607 114 TON 4X4 PICK-UP TRUCK 2D20 TOYOTA TACOMA Fire/Madne 280E 114 TON 4X4 PICK-UP TRUCK 2020 TOYOTA TACOMA FirelMadne 2809 114 TON 4X4 PICK-UP TRUCK 2021 TOYOTA TACOMA FirelMarine 2810 114 TON 4X4 PICK-UP TRUCK 2021 TOYOTA TACOMA Fire/Marine 2811 114 TON 4X4 PICK-UP TRUCK 2021 TOYOTA TACOMA - Flre-Admin 2308 TRUCK 1 TON FLATBED STAKE 2009 FORD F-360 41,967 Fire Admin 2311 112 TON 4X4 PICK-UP TRUCK 2014 FORD F-150 36,147 Fire Admin 231)1 SUV 4X4 2019 CHEVROLET TAHOE 55,077 Fire -Community Education 2309 TRUCK 112 TON EXT CAB 20DO FORD F-151) 26,DOO FIre-Community Education 23W 112 TON PICKUP 04 2021 FORD F-150 - Flre-EMS 2648 MEDIC 2013 INTHAVISTAR TERRASTARS 305,000 Fire -EMS 2647 MEDIC 2013 INTNAVISTAR TERRASTAR8 305,000 Fire -EMS 2646 MEDIC 2013 INTNAVISTAR TERRASTAR8 305,000 Fire -EMS 2601 POLARIS RANGER ATV 2018 POLARIS RANGER 18,000 Fire -EMS 2649 FREIGHTLINERILEADERAMBULANCE 2017 FREIGHTLINER FL-70 305,000 Fire -EMS 2650 LEADERAMBULANCE 2018 FREIGHTLINERFL70 390,000 Fire -EMS 2651 LEADERAMBULANCE 2018 FREIGHTLINERFUD 390,0DO Fire -EMS 2502 SUV 2015 FORD EXPLORER - Fire -EARS 2302 SUV 2015 FORD EXPLORER 38,497 Fire -EMS 2602 16'REHABTRAILER 2019 SOUTHEASTEFTRL0007 70,000 Flre40peratlons 2441 AMERICAN LA FRANCE FIRE ENGINE 1920 LAFRANCE FIRE TRUCK - Fire -Operations 2462 SIMON LTI 1DOFT, AERIAL 1997 SPARTAN I SIN 52-88-320 796.564 Fire -Operations 2410 FIRE TRUCK - PUMPER 1250 GALLON 2003 AMER LAFRAN EAGLE 700,000 FIre,Operallons 2411 FIRE TRUCK - PUMPER 1250 GALLON 2003 AMER LAFRAN EAGLE 700,000 Fire -Operations 2415 FIRE TRUCK - PUMPER 1250 GALLON 2005 AMER LAFRAN EAGLE 700,000 Fire-Operatlens 2497 UTILITY TRAILER 2012 CARRY ON COBX14GW 2,201) Fire-Operatlons 2402 FIRE ENGINE PUMPER 2010 PIERCE ARROW XT 721.028 Fire -Operations 2403 FIRE ENGINE PUMPER 2010 PIERCE ARROW XT 721,028 Fire -Operations 2480 112 TON 4X4 PICK UP TRUCK 2014 FORD F-160 36,147 Fire -Operations 2429 314 TON 4X4 XLT CREW CAB 2016 FORD F-250 61,389 Fire -Operations 2463 AERIAL LADDER FIRE TRUCK 2011 PIERCE ARROW XT ML 1,430,603 Fire -Operations 2472 FIRE ENGINE PUMPER 2014 PIERCE ARROW XT 8DD,624 Fire -Operations 247t FIRE ENGINE PUMPER 2014 PIERCE ARROW XT BOD,624 Fire -Operations 2474 FIRE ENGINE PUMPER 2014 PIERCE ARROW XT 800.324 Fire -Operations 2473 FIRE ENGINE PUMPER 2014 PIERCE ARROW XT 800,624 Fire -Operations 2508 SUV 4X4 2D15 CHEVROLET TAHOE Fire -Operations 2401 SUV 4X4 2015 CHEVROLET TAHOE 49,926 Fire-Operatlons 2475 FIRE ENGINE PUMPER 20t6 PIERCE ARROW XT 858,962 Fire -Operations 2476 FIRE ENGINE PUMPER 2016 PIERCE ARROW XT 858,962 Fire -Operations 2459 SUV 4X4 2017 CHEVROLET SUBURBAN 65,689 Fire -Operations 2498 ONAN GENERATOR 2019 ONAN 54DGCA 30,000 Fire -Operations 2464 AERIAL LADDER TRUCK WITH PUMP fG 2015 PIERCE VELOCITY 1,002,966 FIre-Operatlons 2404 SUV 4X4 2019 CHEVROLET TAHOE 55,077 Fire-Operellons 2430 DES PUMPER 2005 HME 18 SFO - Fire -Operations 2405 FORD EXPEDITION 4X4 2020 FORD EXPEDITION Fire -operations 2477 FIRE ENGINE PUMPER 2021 PIERCE ARROW Xf- Flre-Operations 2478 FIRE ENGINE PUMPER 2021 PIERCE ARROW XT - Fire -Prevention 2506 SUV FIRE TRAINING 2010 FORD EXPLORER 30,825 Fire -Prevention 2511 SUV 2020 FORD ESCAPE - Flre-PrewnElon 2514 SUV 2020 FORD ESCAPE Fire -Prevention 2509 SUV 2020 FORD ESCAPE FireTfnglJr Guards 2837 112 TON 4X4 TRUCK 2013 FORD F-150 36,000 Fire-Tmg1Jr Guards 2860 FORD F-160 4X4 2017 FORD F-150 40,000 Total $ 17,613,550 Source; qty of New pod Beach. 49 W I LLDAN FINANCIAL. SERVICES 15-74 Exhibit "B" Fiscal Year 2024-25 Development Impact Fee Schedule Development Type Residential Commercial Office Industrial Fee Category Feel2,3,5,7 Feel,2,3,4,6 Feel,2,3,4,6 Feel,2,3,4,6 Recreation $4.70 - - Police $101 $0.74 $1.14 $0.40 Fire $173 $182 $279 $0.99 Water $0.90 $0.91 $0.62 $0.77 $ewer $0:56.. $0.70 " $05.1 1. All fees are assessed per square foot. 2. The fees shall be adjusted annually for inflation based on the California Construction Cost Index ("CCCI") one year after the effective date of Resolution No. 2024- . The fees shall be paid prior to issuance of any certificate of occupancy with the total amount owed adjusted for inflation as provided by state law. 3. If a development project will be constructed in phases, and separate building permits and certificates of occupancy will be issued for each phase, the fees shall be calculated based on the development characteristics of the entire development project. Payment of the fees may be made separately for each phase, provided the amount paid for each phase shall be in proportion that each phase represents of the total development project. The amount owed for each phase shall be adjusted for inflation as of the date of payment of the fees for that phase. 4. For nonresidential development projects, the fees shall be assessed based on the gross floor area (including all ancillary spaces and rooms such as basements, storage rooms, mechanical rooms, and similar areas) of the development pursuant to Chapter 20.70 (Definitions) of the NBMC. The fees shall apply to new construction of nonresidential development projects and additions to existing buildings. In the case of an addition, the fees shall apply to the net increase in floor area (credit shall be given for the existing use). 5. For residential development projects, the fees shall be assessed based on the gross floor area (including all ancillary spaces and rooms such as gyms, clubhouses, lobbies, leasing offices and similar areas) of the development pursuant to Chapter 20.70 (Definitions) of the NBMC. The fees shall apply to the following types of residential development: a. New housing projects and subsequent additions constructed on any site identified in Section 20.80.025 (Housing Opportunity Overlay Zoning Districts maps), pursuant to Sections 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts), or pursuant to General Plan Policy LU 4.4. b. New housing projects entitled and constructed in conjunction with a General Plan amendment or other legislative amendment. c. New housing projects constructed pursuant to State or Federal streamlining provisions that allow residential development beyond or in excess of the dwelling unit limits specified in Sections 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts) and 20.80.025 (Housing Opportunity Overlay Zoning Districts maps) of the NBMC or that are intended to circumvent local zoning and General Plan requirements related to density or land use type, unless expressly prohibited by State or Federal law. 6. The following types of nonresidential development are exempt from these fees: a. Retail sales, cultural institutions, eating and drinking establishments (fast casual, take-out, fast food, full -service, bars/lounges/nightclubs, wine tasting rooms and similar uses), boat rentals and sales, and vehicles sales uses, all of which are defined in Section 20.70 (Definitions) of the NBMC. 15-75 b. Visitor Accommodations as defined in Section 20.70 (Definitions) of the NBMC. c. Short-term lodging units may be subject to development impact fees as a residential use. d. Temporary uses. e. Tax exempt educational uses. f. Tax exempt religious facilities. g. Tax exempt welfare or public social service facilities. h. Governmental facilities. i. Other types of development which the City Council determines by resolution is exempt. 7. The following types of residential development are exempt from these fees: a. Accessory dwelling units or junior accessory dwelling units. b. Temporary, transitional or permanent supportive housing and emergency shelters. c. Gross floor area of a development that is devoted entirely to dwelling units that are affordable to moderate- or lower -income households. For projects that include a mix of market rate and affordable dwelling units, only the gross floor area of the affordable dwelling units themselves shall be exempt (I.e., the gross floor area within the walls of the affordable dwelling unit). d. Other types of development which the City Council determines by resolution is exempt. 15-76 Exhibit "C" Development Impact Fee Program Guidelines Credits and refunds shall be provided as follows: 1. No fee credit shall be given for the conversion, redevelopment, replacement, or adaptive reuse of existing nonresidential buildings to residential uses. 2. No fee credit shall be given for the conversion, redevelopment, replacement, or adaptive reuse of existing residential buildings to nonresidential uses. 3. For the replacement of a residential use, fee credit shall be provided for existing residential uses onsite. Forthe replacement of a nonresidential use, fee credit shall be provided for the existing nonresidential use. 4. Where a land use proposed for a site is less intensive than the existing land use, no refund shall be available to the developer. 15-77 Attachment B Ordinance No. 2024-30 15-78 ORDINANCE NO. 2024-30 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, REPEALING AND REPLACING CHAPTER 14.33 (WATER AND SEWER CAPITAL IMPROVEMENT FEE) TO THE NEWPORT BEACH MUNICIPAL CODE AUTHORIZING COLLECTION OF DEVELOPMENT IMPACT FEES FOR WATER AND SEWER SERVICE FACILITIES WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, cities may apply fees for proposed developments to cover the cost of public facilities by way of its police power as codified in the California Constitution Article XI Section 7; WHEREAS, California Government Code Section 66000 et seq. ("Mitigation Fee Act") authorizes the City to collect fees 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; WHEREAS, development impact fees must be supported by a nexus study which calculates the purpose of the fee, the use to which it will be put, the relationship between the fee's use and the development, and establish the need for the fee pursuant to the Mitigation Fee Act; WHEREAS, the Community Development Department commissioned a development impact fee nexus study with Willdan Financial Services; WHEREAS, the City's 6th Cycle Housing Element projects an increase in the population, residential dwelling units, and employment in Newport Beach; WHEREAS, this future residential and nonresidential growth will create additional demand on the City's infrastructure for water and sewer service facilities; 15-79 Ordinance No. 2024- Page 2 of 4 WHEREAS, the City's current system consists of water and sewer lines and infrastructure to serve the community; WHEREAS, Chapter 14.33 (Water and Sewer Capital Improvement Fee) authorizes the City to collect water system impact fees and sewage collection and treatment facilities impact fees to pay for the cost of improvements to the water and sewer system necessitated by new development; and WHEREAS, a duly noticed public hearing was held by the City Council on November 12, 2024, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and the Mitigation Fee Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Chapter 14.33 (Water and Sewer Capital Improvement Fee) of the Newport Beach Municipal Code is hereby repealed and replaced with Exhibit "A," which is attached hereto and incorporated by reference. Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 3: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 15-80 Ordinance No. 2024- Page 3 of 4 Section 4: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 5: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. 15-81 Ordinance No. 2024- Page 4 of 4 Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 12th day of November, 2024, and adopted on the 10th day of December, 2024, by the following vote, to -wit: AYES: NAYS: ABSENT: WILL O'NEILL, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATT RNEY'S OFFICE --k im- AAROrV"t. HARP, JIV ATTORNEY Attachment: Exhibit A — Chapter 14.33 (Water and Sewer Capital Improvement Fee) 15-82 Exhibit A Chapter 14.33 WATER AND SEWER CAPITAL IMPROVEMENT FEE Sections: 14.33.010 Purpose. 14.33.020 Definitions. 14.33.030 Established. 14.33.040 Use. 14.33.050 Developer construction. 14.33.060 Adjustments. 14.33.010 Purpose. A. To implement the goals and objectives of the capital improvement program for facilities and equipment of the City of Newport Beach, and to mitigate the impacts upon the City's sewage collection and treatment facilities caused by new development in the City, certain public facilities and equipment must be constructed and/or improvements made. The public facilities and equipment are specifically identified in the City's capital improvement program for facilities and equipment as adopted by the City Council and as amended from time to time. The list of water and sewage collection and treatment facilities and equipment may be added to or deleted from the approved program. The City Council has determined that a development impact fee is needed to finance these public improvements and to pay for the development's fair share of the costs of these improvements. B. In establishing the fee described in this chapter, the City Council has found the fee to be consistent with its general plan and, pursuant to Govt. Code Section 65913.2, has considered the effects of the fee with respect to the City's housing needs as established in the Housing Element of the General Plan. 14.33.020 Definitions. In this chapter, unless the context otherwise requires: "Cost of improvements" means all costs related to acquisition, construction, repair and financing, but does not include costs of routine maintenance. "New development" means any residential or nonresidential (nonresidential includes commercial and industrial) construction project except as specifically exempted in this chapter or by resolution establishing the fee. 15-83 "Sewage collection and treatment facilities" means capital improvements related to the collection, treatment and disposal of sewage including but not limited to collection systems and sewage treatment plant facilities. "Water system" means capital improvements related to the distribution, treatment and storage of potable water for public health and safety. 14.33.030 Established. A. A water system impact fee is established for development within the City to pay for the City's water distribution, collection and treatment facilities as shown in the adopted capital improvement program for facilities and equipment. B. A sewage collection and treatment facilities impact fee is established for development within the City to pay for the sewage collection system and sewage treatment plant improvements and expansion as shown in the adopted capital improvement program for facilities and equipment. C. The City Council shall, by resolution, set forth the specific amount of the fee, describe the benefit and impact area on which the development fee is imposed, list the specific public improvements to be financed, describe the estimated cost of these facilities, describe the reasonable relationship between this fee and the various types of new developments and set forth time for payment. On an annual basis, the City Council shall review this fee to determine whether the fee amounts are reasonably related to the impacts of developments and whether the described public facilities are still needed. 14.33.040 Use. The revenues raised by payment of this fee shall be placed in a separate and special account and such revenues, along with any interest earnings on that account, shall be used solely to: A. Pay for the City's future facilities described in the resolution enacted pursuant to this chapter, or to reimburse the City for those described or listed facilities constructed by the City with funds advanced by the City from other sources, or B. Reimburse developers who have been required or permitted by this section, to install such listed facilities which are oversized with supplemental size, length or capacity. 14.33.050 Developer construction. A. Whenever a developer is required, as a condition of approval of a development permit, to construct a public facility described in a resolution adopted pursuant to this section which facility is determined by the City to have supplemental size, length or capacity over that needed for the impacts of that development, and when such construction is necessary to ensure efficient and timely construction of the 15-84 facilities network, a reimbursement agreement with the developer and a credit against the fee, which would otherwise be charged pursuant to the ordinance codified in this section on the development project, shall be offered to the developer. B. The reimbursement amount shall not include the portion of the improvement needed to provide services or mitigate the need for the facility or the burdens created by the development. 14.33.060 Adjustments. A. A developer of any new development subject to the fees described in this chapter may apply to the City Council for a reduction or adjustment to that fee(s), or a waiver of that fee(s), based upon the absence of any reasonable relationship or nexus between the sewage collection and treatment facilities and/or water system impacts of that development and either the amount of the fee charged or the type of facilities to be financed. B. A separate application shall be filed for each adjustment request made pursuant to this section. Such application shall be made on a form provided by the City Clerk and shall be filed with the City Clerk not later than: 1. Thirty (30) days prior to the first public hearing on the discretionary permit application for the development project, or 2. If no discretionary permit application is required, within thirty (30) days of filing for a building permit. A building permit for any phase of construction (including grading, demolition, or new construction) shall not be issued until a determination of the base fees is final. C. The application shall state in detail the factual basis for the claim of waiver, reduction, or adjustment. The burden of proof shall be on the applicant to establish that the applicant is not subject to the imposition of the full development impact fee(s) pursuant to the applicable development impact fee ordinance and applicable state law. D. The City Council shall consider the application at the public hearing on the permit application or at a separate hearing held within sixty (60) days after the filing of the fee adjustment application, whichever is later. The decision of the City Council shall be final. E. If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment or reduction of the fee. 15-85 Attachment C Ordinance No. 2024-31 15-86 ORDINANCE NO. 2024-31 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADDING CHAPTER 15.43 (RECREATION FACILITIES IMPROVEMENT FEE) TO THE NEWPORT BEACH MUNICIPAL CODE AUTHORIZING COLLECTION OF DEVELOPMENT IMPACT FEES FOR RECREATION FACILITIES WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, cities may apply fees for proposed developments to cover the cost of public facilities by way of its police power as codified in the California Constitution Article XI Section 7; WHEREAS, California Government Code Section 66000 et seq. ("Mitigation Fee Act") authorizes the City to collect fees 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; WHEREAS, development impact fees must be supported by a nexus study which calculates the purpose of the fee, the use to which it will be put, the relationship between the fee's use and the development, and establish the need for the fee pursuant to the Mitigation Fee Act; WHEREAS, the Community Development Department commissioned a development impact fee nexus study with Willdan Financial Services; WHEREAS, the City's 61h Cycle Housing Element projects an increase in the population, residential dwelling units, and employment in Newport Beach; WHEREAS, this future residential and nonresidential growth will create additional demand on the City's infrastructure for recreation facilities; 15-87 Ordinance No. 2024- Page 2 of 4 WHEREAS, the City's current recreational facilities inventory is comprised of various community centers, senior centers, junior lifeguard facility, and harbor facilities to serve the community; WHEREAS, Chapter 15.43 (Recreation Facilities Improvement Fee) authorizes the City to collect development impact fees for recreation facilities to cover the cost of developing additional recreational facilities necessitated by new development; and WHEREAS, a duly noticed public hearing was held by the City Council on November 12, 2024, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and the Mitigation Fee Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Chapter 15.43 (Recreation Facilities Improvement Fee) is hereby added to the Newport Beach Municipal Code as set forth in Exhibit "A," which is attached hereto and incorporated by reference. Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 3: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Ordinance No. 2024- Page 3 of 4 Section 4: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 5: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. 15-89 Ordinance No. 2024- Page 4 of 4 Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 12th day of November, 2024, and adopted on the 10th day of December, 2024, by the following vote, to -wit: Tyd:&I NAYS: ABSENT: ATTEST: WILL O'NEILL, MAYOR LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE RP, CITYWTTORNEY Attachment: Exhibit A — Chapter 15.43 (Recreation Facilities Improvement Fee) 15-90 Exhibit A Chapter 15.43 RECREATION FACILITIES IMPROVEMENT FEE Sections: 15.43.010 Purpose. 15.43.020 Definitions. 15.43.030 Established. 15.43.040 Use. 15.43.050 Developer construction. 15.43.060 Adjustments. 15.43.010 Purpose. A. To implement the goals and objectives of the capital improvement program for facilities and equipment of the City of Newport Beach, and to mitigate the impacts to the City's recreational facilities caused by new development in the City, certain public facilities and equipment must be constructed and/or acquired. The public facilities and equipment are specifically identified in the City's capital improvement program for facilities and equipment as adopted by the City Council and as amended from time to time. The list of recreational facilities and equipment may be added to or deleted from the approved program. The City Council has determined that a development impact fee is needed to finance these public improvements and to pay for the development's fair share of the costs of these improvements. B. In establishing the fee described in this chapter, the City Council has found the fee to be consistent with its general plan and, pursuant to Govt. Code Section 65913.2, has considered the effects of the fee with respect to the City's housing needs as established in the Housing Element of the General Plan. 15.43.020 Definitions. In this chapter, unless the context otherwise requires: "Cost of improvements" means all costs related to acquisition, construction, repair and financing, but does not include costs of routine maintenance. "New development" means any residential or nonresidential (nonresidential includes commercial, office, and industrial) construction project except as specifically exempted in this chapter or by resolution establishing the fee. "Recreational facility" means capital improvements related to the buildings, furnishings, vehicles, equipment, software, and similar facilities utilized for recreational purposes. 15-91 15.43.030 Established. A. A recreation facility impact fee is established on issuance of all building permits, for development within the City to pay for the City's buildings, furnishings, vehicles, equipment and similar facilities utilized for recreational purposes as shown in the adopted capital improvement program for facilities and equipment. B. The City Council shall, in a council resolution, set forth the specific amount of the fee, describe the benefit and impact area on which the development fee is imposed, list the specific public improvements to be financed, describe the estimated cost of these facilities, describe the reasonable relationship between this fee and the various types of new developments and set forth time for payment. On an annual basis, the City Council shall review this fee to determine whether the fee amounts are reasonably related to the impacts of developments and whether the described public facilities are still needed. 15.43.040 Use. The revenues raised by payment of this fee shall be placed in a separate and special account and such revenues, along with any interest earnings on that account, shall be used solely to: A. Pay for the City's future facilities described in the resolution enacted pursuant to this chapter, or to reimburse the City for those described or listed facilities constructed by the City with funds advanced by the City from other sources, or B. Reimburse developers who have been required or permitted by this chapter, to install such listed facilities which are oversized with supplemental size, length, or capacity. 15.43.050 Developer construction. A. Whenever a developer is required, as a condition of approval of a development permit, to construct a public facility described in a resolution adopted pursuant to this chapter which facility is determined by the City to have supplemental size, length, or capacity over that needed for the impacts of that development, and when such construction is necessary to ensure efficient and timely construction of the facilities network, a reimbursement agreement with the developer and a credit against the fee, which would otherwise be charged pursuant to the ordinance codified in this chapter on the development project, shall be offered to the developer. B. The reimbursement amount shall not include the portion of the improvement needed to provide services or mitigate the need for the facility or the burdens created by the development. 15.43.060 Adjustments. A. A developer of any new development subject to the fee described in this chapter may apply to the City Council for a reduction or adjustment to that fee, or a waiver of that fee, based upon the absence of any reasonable relationship or nexus between the 15-92 recreational impacts of that development and either the amount of the fee charged or the type of facilities to be financed. B. A separate application shall be filed for each adjustment request made pursuant to this section. Such application shall be made on a form provided by the City Clerk and shall be filed with the City Clerk not later than: Thirty (30) calendar days prior to the first public hearing on the discretionary permit application for the development project, or 2. If no discretionary permit application is required, within thirty (30) calendar days of filing for a building permit. A building permit for any phase of construction (including grading, demolition, or new construction) shall not be issued until determination of the base fees is final. C. The application shall state in detail the factual basis for the claim of waiver, reduction, or adjustment. The burden of proof shall be on the applicant to establish that the applicant is not subject to the imposition of the full development impact fee(s) pursuant to the applicable development impact fee ordinance and applicable state law. D. The City Council shall consider the application at the public hearing on the permit application or at a separate hearing held within sixty (60) days after the filing of the fee adjustment application, whichever is later. The decision of the City Council shall be final. E. If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment or reduction of the fee. 15-93 Attachment D Ordinance No. 2024-32 15-94 ORDINANCE NO. 2024-32 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADDING CHAPTER 15.44 (PUBLIC SAFETY DEVELOPMENT IMPACT FEE) TO THE NEWPORT BEACH MUNICIPAL CODE AUTHORIZING COLLECTION OF DEVELOPMENT IMPACT FEES FOR POLICE AND FIRE SERVICE FACILITIES WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, cities may apply fees for proposed developments to cover the cost of public facilities by way of its police power as codified in the California Constitution Article XI Section 7; WHEREAS, California Government Code Section 66000 et seq. ("Mitigation Fee Act") authorizes the City to collect fees 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; WHEREAS, development impact fees must be supported by a nexus study which calculates the purpose of the fee, the use to which it will be put, the relationship between the fee's use and the development, and establish the need for the fee pursuant to the Mitigation Fee Act; WHEREAS, the Community Development Department commissioned a development impact fee nexus study with Willdan Financial Services; WHEREAS, the City's 6"' Cycle Housing Element projects an increase in the population, residential dwelling units, and employment in Newport Beach; WHEREAS, this future residential and nonresidential growth will create additional demand on the City's infrastructure for police and fire service facilities; 15-95 Ordinance No. 2024- Page 2 of 4 WHEREAS, the City's current police facilities consist of the police station, police vehicles, animal shelter, and equipment inventory that are utilized to protect the community; WHEREAS, the City's current fire and life safety facilities consist of fire stations, apparatus and vehicles that are utilized to protect the community; WHEREAS, Chapter 15.44 (Public Safety Development Impact Fee) authorizes the City to collect development impact fees for police, fire and life safety services to cover the cost of developing additional police and fire facilities necessitated by new development to continue to protect the community; and WHEREAS, a duly noticed public hearing was held by the City Council on November 12, 2024, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and the Mitigation Fee Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Chapter 15.44 (Public Safety Development Impact Fee) is hereby added to the Newport Beach Municipal Code as set forth in Exhibit "A," which is attached hereto and incorporated by reference. Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 3: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 15-96 Ordinance No. 2024- Page 3 of 4 Section 4: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 5: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. 15-97 Ordinance No. 2024- Page 4 of 4 Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 12th day of November, 2024, and adopted on the 10th day of December, 2024, by the following vote, to -wit: AYES: NAYS: ABSENT: WILL O'NEILL, MAYOR ATTEST: LE[LANI I. BROWN, CITY CLERK APPROVED AS TO (FORM: CITY ATTORNEY'S OFFICE AARON\O' HARP, CITY ATTORNEY Attachment: Exhibit A — Chapter 15.44 (Public Safety Development Impact Fee) 15-98 EXHIBIT A Chapter 15.44 Public Safety Development Impact Fees Sections: 15.44.010 Purpose. 15.44.020 Definitions. 15.44.030 Established. 15.44.040 Use. 15.44.050 Developer construction. 15.44.060 Adjustments. 15.44.010 Purpose. A. To implement the goals and objectives of the capital improvement program for facilities and equipment of the City of Newport Beach and to mitigate the impacts to the City police and fire services caused by new development in the City, certain public facilities and equipment must be constructed and/or acquired. The public facilities and equipment are specifically identified in the City's capital improvement program for facilities and equipment as adopted by the City Council and as amended from time to time. The list of police and fire service facilities may be added to or deleted from the approved program. The City Council has determined that a development impact fee is needed to finance these public improvements and to pay for the development's fair share of the costs of these improvements. B. In establishing the fees described in this chapter, the City Council has found the fees to be consistent with its general plan and, pursuant to Govt. Code Section 65913.2, has considered the effects of the fee with respect to the City's housing needs as established in the Housing Element of the General Plan. 15.44.020 Definitions. In this chapter, unless the context otherwise requires: "Cost of improvements" means all costs related to acquisition, construction, repair and financing, but does not include costs of routine maintenance. "Fire service facilities" means capital improvements related to buildings, furnishings, vehicles, equipment, software, and similar facilities utilized by the City's fire department. "New development" means any residential or nonresidential (nonresidential includes commercial, office, and industrial) construction project except as specifically exempted in this chapter or by resolution establishing the fee. "Police service facilities" means capital improvements related to buildings, furnishings, vehicles, equipment, software, and similar facilities utilized by the City's police departments. 15-99 15.44.030 Established. A. A police service facilities impact fee is established for development within the City to pay for buildings, furnishings, vehicles, software, and equipment as shown in the adopted capital improvement program for facilities and equipment. B. A fire service facilities impact fee is established for development within the City to pay for buildings, furnishings, vehicles, software, and equipment as shown in the adopted capital improvement program for facilities and equipment. C. The City Council shall, in a council resolution, set forth the specific amount of the fee, describe the benefit and impact area on which the development fee is imposed, list the specific public improvements to be financed, describe the estimated cost of these facilities, describe the reasonable relationship between this fee and the various types of new developments and set forth time for payment. On an annual basis, the City Council shall review this fee to determine whether the fee amounts are reasonably related to the impacts of developments and whether the described public facilities are still needed. 15.44.040 Use. The revenues raised by payment of the fire service facilities fee and/or the police service facilities fee shall be placed in a separate and special account and such revenues, along with any interest earnings on that account, shall be used solely to: A. Pay for the City's future facilities described in the resolution enacted pursuant to this chapter, or to reimburse the City for those described or listed facilities constructed by the City with funds advanced by the City from other sources, or B. Reimburse developers who have been required or permitted by this chapter, to install such listed facilities which are oversized with supplemental size, length, or capacity. 15.44.050 Developer construction. A. Whenever a developer is required, as a condition of approval of a development permit, to construct a public facility described in a resolution adopted pursuant to this chapter which facility is determined by the City to have supplemental size, length, or capacity over that needed for the impacts of that development, and when such construction is necessary to ensure efficient and timely construction of the facilities network, a reimbursement agreement with the developer and a credit against the fee, which would otherwise be charged pursuant to the ordinance codified in this chapter on the development project, shall be offered to the developer. B. The reimbursement amount shall not include the portion of the improvement needed to provide services or mitigate the need for the facility or the burdens created by the development. 15.44.060 Adjustments. A. A developer of any new development subject to the fees described in this chapter may apply to the City Council for a reduction or adjustment to the fee(s), or a waiver of that fee(s), based upon the absence of any reasonable relationship or nexus 15-100 between the police service and/or fire service impacts of that development and either the amount of the fee charged or the type of facilities to be financed. B. A separate application shall be filed for each adjustment request made pursuant to this section. Such application shall be made on a form provided by the City Clerk and shall be filed with the City Clerk not later than: 1. Thirty (30) days prior to the first public hearing on the discretionary permit application for the development project, or 2. If no discretionary permit application is required, within thirty (30) days of filing for a building permit. A building permit for any phase of construction (including grading, demolition, or new construction) shall not be issued until a determination of base fees is final. C. The application shall state in detail the factual basis for the claim of waiver, reduction, or adjustment. The burden of proof shall be on the applicant to establish that the applicant is not subject to the imposition of the full development impact fee(s) pursuant to the chapter and applicable state law. D. The City Council shall consider the application at the public hearing on the permit application or at a separate hearing held within sixty (60) days after the filing of the fee adjustment application, whichever is later. The decision of the City Council shall be final. E. If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment or reduction of the fee. 15-101 Attachment E Comparison Survey 15-102 1I/W I LLDAN Development Impact Fee Comparison Survey Methodology Willdan collected development impact fee schedules for fees charged under the Mitigation Fee Act for seven comparison cities. These comparison jurisdictions are: • Beverly Hills • Huntington Beach • Irvine • Laguna Beach • Malibu • San Clemente • Santa Monica Willdan collected data regarding one-time fees and charges charged by the cities used to fund infrastructure and facilities related to new development. Note that this comparison excludes transportation -related impact fees and Quimby fees in -lieu of land dedication, since the City is not updating those fees as part of this effort. Impact fees are not standardized and are assessed by various units of development by different jurisdictions. To create a meaningful comparison of impact fees, Willdan calculated the fees for six prototype projects. Table 1 presents the project prototype assumptions used in this analysis. Table 1: Prototype Assumptions Water Meter Type Units Sq. Ft. Size Sinqle Family Unit 1 2,500 4 Bedroom Multifamily Prototype - Apartments Studio 40 515 1 Bedroom 126 755 2 Bedroom 63 1,259 Total 229 194,984 Multifamily Prototype - Condos 2 Bedroom 27 1,634 3 Bedroom 40 2,636 Total 67 149,525 Retail/Commercial N/A 5,500 1.51, Medical Office N/A 20,000 3" Mixed Use Residential 3 2,200 3 Bedroom Commercial 2,600 1.5" October 24, 2024 Page 1 15-103 1I/W I LLDAN Results Tables 2 through 7 display the fee companions for each prototype, respectively. Some jurisdictions charge impact fees that vary by project location. In these cases, the tables show the range of potential impact fees. Figures 1 through 6 accompany the tables and illustrate the results in bar graphs. October 24, 2024 Page 2 15-104 W�W I LLDAN Table 2: Single Family Unit Prototype - 2,500 Square Feet DRAFT Newport Fee Category Beach Beverly Hills Huntington Beach Irvine Irvine Low) (High)' Laguna Beach Malibu San San Clemente Clemente (Low )2 (High )2 Santa Monica Art in Public Places3 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Child Care - - - - - - - - - 185 General Government - - - - - - - 648 648 - Fire 4,325 - 844 - - - - - - - Infrastructure - - - - 18,054 - - - - - Libraries - - 1,180 - - 200 - - - - Parking3 - - - - - - - - - - Parks 4 - - 16,555 - - - 4,968 - - 10,169 Police 2,525 - 362 - - - - 1,883 1,883 - Recreation 11,750 - - - - - - - - - Sewer 2,250 - 2,594 - - 4,722 - - - - Storm Drain - - - - - - - 60 5,633 Water 1,400 - 2,862 - - 5,151 - 3,156 3,156 - $ - $ 24,397 $ 10,073 $ 4,968 $ 10,355 Total - per Prototype $ 22,250 $ - $ 18,054 $ 5,747 $ 11,320 Irvine Infrastructure Fees apply only to the "Irvine Business Complex" area 2 San Clemente Storm Drain fees vary by project location. 3 Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite. 4 Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table. October 24, 2024 Page 3 15-105 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 W�W I LLDAN Figure 1: Single Family Unit Prototype - 2,500 Square Feet Beverly Irvine Malibu San Laguna Hills (Low) Clemente Beach (Low) October 24, 2024 Page 4 Santa San Irvine Newport Monica Clemente (High) Beach (High) (Maximum Justified) Huntington Beach 15-106 W"i I LLDAN Table 3: Multifamily Prototype - 229 Apartments DRAFT Fee Category Newport Beach Beverly Hills Huntington Beach Irvine Irvine (Low) (High)' Laguna Beach Malibu San San Clemente Clemente (Low)2 (High)2 Santa Monica Art in Public Places3 $ - $ - $ - $ - $ - $ - $ - $ $ - $ - Child Care - - - - - - - - 42,463 General Government - - - - - - - 148,429 148,429 - Fire 337,322 - 80,116 - - - - - - - Infrastructure - - - 4,134,366 - - - - Libraries - 198,424 - - 45,800 - - - - Parking3 - - - - - - - - - Parks4 - 2,915,820 - - - 723,411 - - 1,261,996 Police 196,934 170,944 - - - - 431,180 431,180 - Recreation 916,425 - - - - - - - - Sewer 175,486 485,741 - - 876,383 - - - - Storm Drain - - - - - - 3,817 184,280 - Water 109,191 655,398 - - 1,179,579 - 722,724 722,724 _ $ - $4,506,443 $ 2,101,762 $723,411 $ 1,304,460 Total - per Prototype $ 1,735,358 $ - $4,134,366 $ 1,306,149 $ 1,486,612 Irvine Infrastructure Fees apply only to the "Irvine Business Complex" area San Clemente Storm Drain fees vary by project location. Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite. "Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table. October 24, 2024 Page 5 15-107 Figure 2: Multifamily Prototype - 229 Apartments $ 5, 000, 000 $4,500,000 $4,000,000 $3,500,000 $ 3, 000, 000 $2,500,000 $ 2, 000, 000 $1,500,000 $1, 000, 000 $500,000 Beverly Irvine Malibu Hills (Low) October 24, 2024 Page 6 W�W I LLDAN Santa San San Newport Laguna Irvine Huntington Monica Clemente Clemente Beach Beach (High) Beach (Low) (High) (Maximum Justified) 15-108 1I�W I LLDAN Table 4: Multifamily Prototype - 67 Condominiums DRAFT Newport Fee Category Beach Beverly Hills Huntington Beach Irvine Irvine (Low) (High)' Laguna Beach Malibu San San Clemente Clemente (Low)2 (High)2 Santa Monica Art in Public Places3 $ - $ - $ $ - $ $ - $ $ - $ - $ Child Care - - - - - - 12,424 General Government - - - - 43,427 43,427 - Fire 258,677 - 23,440 - - - - Infrastructure - - - - 1,209,618 - - Libraries - - 58,054 - - 13,400 - Parkin g3 - - - - - - - Parks' - - 853,100 - - 211,653 - - 369,230 Police 151,020 - 50,014 - - - 126,153 126,153 - Recreation 702,765 - - - - - - Sewer 134,572 - 142,116 - 256,409 - - Storm Drain - - - - - 1,117 53,916 Water 83,734 - 191,754 - 345,117 - 211,452 211,452 - $ - $ 1,318,479 $ 614,926 $ 211,653 $ 381,654 Total - per Prototype $ 1,330,768 $ - $ 1,209,618 $ 382,148 $ 434,948 Irvine Intrastructure Fees apply only to the "Irvine business Complex" area San Clemente Storm Drain fees vary by project location. Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite. Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table. October 24, 2024 Page 7 15-109 $1,400,000 $1,200,000 $1,000,000 Beverly Irvine Hills (Low) uciooer L4, LUL4 Page 8 Figure 3: Multifamily Prototype - 67 Condominiums Malibu Santa Monica San San Clemente Clemente (Low) (High) Laguna Beach W�W I LLDAN Irvine Huntington Newport (High) Beach Beach (Maximum Justified) 15-110 W�W I LLDAN Table 5: Retail/Commercial Prototype - 5,500 Square Feet DRAFT Newport Fee Category Beach Beverly Hills Huntington Beach Irvine Laguna Beach Malibu San San Clemente Clemente (Low)' (High)' Santa Monica Art in Public Places2 $ - $ - $ - $ - $ - $ - $ - $ - $ - Child Care - - - - - - - - 34,595 General Government - - - - - - - - - Fire 10,010 - 1,656 - - - - - - Infrastructure - - - - - - - - - Libraries - - - - - - - - - Parking2 - - - - - - - - - Parks3 - - 4,934 - - - - - 10,945 Police 4,070 - 5,242 - - - 2,581 2,581 - Recreation - - - - - - - - - Sewer 5,005 - 8,844 - 13,722 - - - - Storm Drain - - - - - - 330 3,098 - Water 3,850 - 8,585 - 21,121 - 5,775 5,775 - $ - $ 29,260 $ - $ 34,843 $ - $ 45,540 Total - per Prototype $ 22,935 $ 8,686 $ 11,454 'San Clemente Storm Drain fees vary by project location. `Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite. Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table. October 24, 2024 Page 9 15-111 W�W I LLDAN Figure 4: Retail/Commercial Prototype - 5,500 Square Feet $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 Beverly Irvine Hills (Low) October 24, 2024 Page 10 Malibu San Clemente (Low) San Clemente (High) Newport Beach (Maximum Justified) Huntington Laguna Santa Beach Beach Monica 15-112 W�W I LLDAN Table 6: Medical Office Prototype - 20,000 Square Feet DRAFT Newport Fee Category Beach Beverly Hills Huntington Beach Irvine Laguna Beach Malibu San San Clemente Clemente (Low)' (High)' Santa Monica Art in Public Places2 $ - $ - $ - $ - $ - $ - $ - $ - $ - Child Care - - - - - - - - 176,000 General Government - - - - - - - - - Fire 55,800 - 6,020 - - - - - - Infrastructure - - - - - - - - - Libraries - - - - - - - - - Parking2 - - - - - - - - - Parks3 - - 17,940 - - - - - 61,600 Police 22,800 - - - - - 9,384 9,384 - Recreation - - - - - - - - 61,600 Sewer 12,400 - 32,434 - 49,648 - - - - Storm Drain - - - - - - 1,200 11,266 - Water 10,200 - 31,475 - 55,838 - 21,000 21,000 - $ - $ 87,869 $ - $ 105,486 $ - $ 299,200 Total - per Prototype $ 101,200 $ 31,584 $ 41,650 'San Clemente Storm Drain fees vary by project location. Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite. Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table. October 24, 2024 Page 11 15-113 Figure 5: Medical Office Prototype - 20,000 Square Feet $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Beverly Irvine Malibu San San Huntington Newport Hills Clemente Clemente Beach Beach (Low) (High) (Maximum Justified) October 24, 2024 Page 12 W�W I LLDAN Laguna Santa Beach Monica 15-114 W""'W I LLDAN Table 7: Mixed Use Prototype - 3 Dwelling Units and 2,600 Square Feet of Commercial DRAFT Newport Fee Category Beach Beverly Hills Huntington Beach Irvine Irvine (Low) (High)' Laguna Beach Malibu San San Clemente Clemente (Low)2 (High)2 Santa Monica Art in Public Places3 $ $ $ - $ - $ $ $ - $ - $ $ - Child Care - - - - 16,910 General Government - - - 1,944 1,944 - Fire 16,150 1,832 - - - - - Infrastructure - - - 54,162 - - - Libraries 2,599 - - 600 - - - Parking3 - - - - - - Parks4 - 40,531 - 9,477 - - 21,707 Police 8,590 4,717 - - 6,869 6,869 - Recreation 31,020 - - - - - - Sewer 8,306 15,208 - 17,968 - - - - Storm Drain - - - - - 600 5,633 Water 5,516 17,171 36,574 19,968 19,968 $ $ 82,058 $ 55,142 $ 9,477 $ 38,617 Total - per Prototype $ 69,582 $ - $ 54,162 $ 29,381 $ 34,414 Irvine Infrastructure Fees apply only to the "Irvine Business Complex" area San Clemente Storm Drain fees vary by project location. Public Art fee assumes that art is provided onsite. Parking fee assumes parking is provided onsite. " Park fees included in this table are charged under the Mitigation Fee Act. Quimby Act fees in -lieu of parkland dedication are excluded from this table. October 24, 2024 Page 13 15-115 W�W I LLDAN Figure 6: Mixed Use Prototype - 3 Dwelling Units and 2,600 Square Feet of Commercial $90,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Beverly Irvine Malibu Hills (Low) October 24, 2024 Page 14 San Huntington Santa San Irvine Newport Laguna Clemente Beach Monica Clemente (High) Beach Beach (Low) (High) (Maximum Justified) 15-116