HomeMy WebLinkAboutMinutes - March 27, 2012 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, MARCH 27, 2012
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, March 27, 2012, commencing at 7:00 a.m.
Present: Council Member Hansen, Council Member Johnson, Council Member Katzakian, and
Mayor Mounce
Absent: Mayor Pro Tempore Nakanishi
Also Present: City Manager Bartlam, Deputy City Attorney Magdich, and City Clerk Johl
B. Topic(s)
B-1 Development Impact Mitigation Fee Program Update (PW)
City Manager Bartlam provided a brief introduction to the subject matter of the impact mitigation
fee update.
Public Works Director Wally Sandelin, along with Consultants Alison Boule and Victor Irzyk,
provided a PowerPoint presentation regarding the impact mitigation fee update. Specific topics of
discussion included project progress, fee assumptions and methodology, five-year plan, project
costs and impact fees for Police, Fire, general facilities, transportation, and parks, Art in Public
Places (AiPP) fee calculation, wastewater fee assumptions and impact fees, surface water
allocation to new development, and the water impact fee. Electric Utility Director Elizabeth Kirkley
discussed the Electric Utility project costs, map, and impact fee.
In response to Council Member Hansen, Mr. Sandelin stated because forecasting 20 years out is
challenging the proposal includes a 5- and 20 -year blend whereby the program is visited every 5
years starting in 2020.
In response to Council Member Johnson, Mr. Sandelin stated the development community has
agreed upon the density amount.
In response to Council Member Hansen, Mr. Sandelin stated that, based on the yellow shading in
the map, the entire area within the City limits plus the area west of Lower Sacramento Road is
covered by the program.
In response to Council Member Hansen, Mr. Irzyk stated $385 is the proposed fee for Fire.
In response to Council Member Johnson, Mr. Irzyk stated the 470% change in industrial is based
on current assumptions that are not considered in the existing fee schedule. Mr. Irzyk stated the
original fees could have been reduced for economic development purposes in the past.
In response to Council Member Hansen, Mr. Sandelin stated staff will forward to the City Council
the background information and assumptions used to calculate the industrial number as
requested.
In response to Council Member Johnson, Mr. Sandelin stated the 100% future allocation for the
Library is based on the 6,000 square foot figure suggested in the General Plan.
Continued March 27, 2012
In response to Council Member Hansen, Mr. Sandelin stated the median construction on West
Lane ties into new development because it is south of Harney Lane to the southern City
boundaries.
In response to Mayor Mounce, Ms. Boule reviewed the full funding of the grade separation project
which includes funds from Measure K, Union Pacific, Regional Transportation Impact Fee, and
other regional funds.
In response to Council Member Johnson, Mr. Sandelin stated the Harney Lane and Highway 99
interchange improvements were already addressed through the Reynolds Ranch project.
In response to Council Member Hansen, Mr. Sandelin stated the City will be receiving the funds
from the Public Utilities Commission (PUC) within the next two cycles for the grade separation.
In response to Mayor Mounce, Mr. Bartlam stated if there is money in the fee program it must be
bid as a public project versus the ability to reduce the overall cost by having a developer do the
project directly. Mr. Sandelin stated they must still comply with the relevant building code
requirements to ensure quality and produce a two-year bonded warranty.
In response to Council Member Johnson, Mr. Bartlam stated sometimes it is beneficial financially
and time wise for both the City and the developer if there is outside funding available for a
project.
In response to Council Member Hansen, Ms. Boule stated the Lodi Lake calculation is based on
an improvement of the existing footprint and is not an expansion although the west end of the
lake would be new park space.
In response to Council Member Johnson, Mr. Sandelin confirmed that the $75,399 amount for
AiPP is 50% of residents times the amount of staff.
In response to Mayor Mounce, Mr. Bartlam confirmed that the new methodology for AiPP is more
consistent and legally defensible in comparison to the current 2% formula.
In response to Mayor Mounce, Mr. Sandelin confirmed there is an overall fee decrease of 30% for
the proposed wastewater impact fee.
In response to Council Member Johnson, Mr. Sandelin stated the banking number assumes 40
years of banking for surface water allocation purposes.
In response to Mayor Mounce, Mr. Sandelin stated staff will provide to the City Council
comparison information associated with the proposed numbers and the previously considered
formula of 2,000 acre feet for existing residents and 4,000 acre feet for new residents as
requested.
In response to Council Member Hansen, Ms. Kirkley stated the Electric Utility impact fee relates
to infrastructure, equipment, and labor for capacity purposes and is not connected to the cost of
electricity. Ms. Kirkley stated the behind meter project affects all rate payers and is not included in
the impact fee program.
In response to Mayor Mounce, Ms. Kirkley stated she is not aware of the $165,000 maximum
charge set forth by ordinance in 2007 but she will look into it. Mr. Sandelin confirmed that the
existing and proposed assumptions for Electric Utility yield the same approximate figure of $7
million.
N
Continued March 27, 2012
In response to Council Member Johnson, Ms. Kirkley stated the PG&E project at Victor Road is
not considered in the program because it would affect all ratepayers and not only new
development.
In response to Mayor Mounce, Mr. Bartlam stated the Costco and Blue Shield payments do apply
to the fee calculations to some degree but some of what was paid covered their own
infrastructure needs.
In response to Mayor Mounce, Ms. Kirkley stated the majority of the improvements along
Cherokee Lane are related to expanding capacity of the existing system and not necessarily tied
to industrial growth.
John Beckman, representing the Building Industry Association, spoke in regard to his concerns
about building fees going up and remaining too high.
Dennis Bennett spoke in regard to his concerns about the high bottom line for fees, the growing
trend to lower or waive fees, and establishing a phased approach for adopted fees. In response
to Council Member Hansen, Mr. Bennett stated in 2002 the fee average was $40,000 at $150 per
foot and now it is in the $100 per foot range for the average home.
In response to Council Member Johnson, Mr. Beckman stated the Building Industry Association is
having ongoing meetings with the San Joaquin Council of Governments and other cities in an
attempt to reduce or waive fees and the school district has already reduced its fee from $4 to $3.
C. Comments by Public on Non-Aaenda Items
None.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:20 a.m.
ATTEST:
Randi Johl
City Clerk
AGENDA ITEM
(0 CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Development Impact Mitigation Fee Program Update
MEETING DATE: March 27, 2012 (Shirtsleeve Session)
PREPARED BY: Public Works Director
13901
RECOMMENDED ACTION: Development Impact Mitigation Fee Program Update.
BACKGROUND INFORMATION: On March 16, 2011, City Council approved the professional services
agreement with Harris and Associates for the Development Impact
Fee Program Update. Members of the project team will make a
presentation to the City Council regarding a number of topics including, but not limited to, the following:
1. Police and Fire Fee
2. Streets Fee Revisions
3. Sewer Fee Revisions
4. Additional Improvement Cost Burden Assigned to Developer
5. Art In Public Places Fee
6. Water Fee
7. Electric Utility Fee
A public workshop is scheduled in the Spring to present the various utility master plans and the fee
program. Draft master plan and fee documents will be available for review by the development
community during that same period. A final Shirtsleeve Session is scheduled with the City Council on
June 12, 2012, leading to possible adoption of the program on June 20, 2012.
FISCAL IMPACT
FUNDING AVAILABLE
FWS/pmf
Not applicable.
Not applicable.
APPROVED:
JJ la I /' '�'/Ln'
F. Wally elin
Public Works Director
Xonradt Bartlam, City Manager
K:\WP\IMFees\2011 IMF Update\Council Communications\CIMFUpdate_Shirtsleeve5.doc
3/20/2012
The City of Lodi
Public Works
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Impact Mitigation Fee Update
Shirtsleeve Session
March 27, 2012
Project Progress
• Growth Forecast
• Vacant Land Inventory
April 19 Fee Incentive Areas
• Location of Development
• Water Connection Fee
• Wastewater Connection Fee
July 12 . Storm Drainage Fee Concept
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• Police Fee
• Fire Fee
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Project Progress
• Revised Transportation Fee
September 22 • Parks and Recreation Fee
• Art in Public Places Fee
• Comparison
• Police, Fire and General Facilities
• Revised Transportation Fee
Today • Revised Parks and Recreation Fee
• Art in Public Places Fee
• Revised Wastewater Fee
• Revised Water Fee
• E U D Fee
4
ift Fee Assumptions &Methodology
April 2011 Assumptions and Methodology
o Collaboration With Development Community
o Single Fee Zones Wherever Possible
o Alternative Calculation Methodologies
✓ 5 Year Plan
✓ 10 Year Plan
✓ 15 Year Plan
✓ 20 Year Plan
o Development Forecast (Intensities and Densities)
✓ Single Family Density 6 units per acre
✓ General Plan Floor Area Ratios
✓ General Plan Employee Ratios
5 Year Plan
➢Water Fee
➢Wastewater Fee
➢ Parks Fee
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Sargent Rd.
Harney Ln.
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IMFP
Project Total Project Cost Other Funding Percentage IMFP Total Cost
Share
Mills Ave. and Elm St. (2x2)
$
259,000
$
(207,200)
20%
$
51,800
Turner Rd. and California St. (4x2)
$
280,000
$
(224,000)
20%
$
56,000
Turner Rd. and Sacramento St. (4x2)
$
280,000
$
(196,000)
30%
$
84,000
Cherokee Ln. and Elm St. (4x2)
$
280,000
$
(196,000)
30%
$
84,000
Guild Ave. and Victor Rd. (44)
$
315,000
$
-
100%
$
315,000
Total Traffic Signals
$
1,414,000
$
(823,200)
$
590,800
3adway Improvements
Guild Ave. Re -stripe from 2 lanes to 4
$
43,400
$
-
100%
$
43,400
Victor Rd. Widen to 4 Lanes SR 99 and Guild Avenue
$
6,030,000
$
(3,530,000)
100%
$
2,500,000
West Ln. - median construction south of Harney Ln.
$
568,400
$
-
100%
$
568,400
Harney Lane
Harney Ln. Widen to 4 lanes from West Lane to County
Line (West of Lower Sac)
$
3,630,000
$
(1,500,000)
100%
$
2,130,000
Harney Ln Grade Separation of UPRR
$
20,300,000
$
(20,300,000)
100%
$
-
Total Roadway ImprovementJ
$
33,497,800
$
(28,256,000)
$
5,241,800
Traffic Projects Total
$
34,911,800
$
(29,079,200)
$
5,832,600
ift Wastewater Fee Assumptions
• Treatment Capacity 8.5 MGD
• 200 Gallons per day per DUE
• Service Capacity to Serve Future Customers 2.3 MGD
• $128 Million (`91,'03,'04,&'07 COPs)
• $5.8 Million Credit (Flag City Buy In)
• $48.6 Million for Future Customers
• Service capacity of plant 42,500 DUE's
• Service capacity for future customers 11,500 DUE's
04i�. Surface Water Allocation to New Development
94-7401
Annual Water Requirement per DUE
Safe Yield Groundwater Supply per DUE
Supply Provided by Surface Water per DUE
Annual Surface Water Supply
DUE's of Surface Water Supply
0.62 AF/Yr
0.38 AF/Yr
0.24 AF/Yr
7,200 AF/Yr
30,000
101 �p9 Water Impact Fee
Surface Water Treatment Component of Impact Mitigation Fee
Planning and Design Costs Paid From Reserves $3,869,800
Total Debt Service Payments Treatment Plant $6777957425
Total Water Treatment Costs for IMF Calculation
DUE's of Surface Water Capacity
Surface Water Treatment Component
New Water Facilities Component of Impact Mitigation Fee
1.5 Million Gallon Storage Reservoir
1 Groundwater Well
Total New Water Facilities
DUE's of New Facilities Capacity
New Facilities Component
Total Water Impact Mitigation Fee
$3,000,000
$1,000,000
Questions?
SFR @ 200A
PG&E
SMUD
ROSEVILLE
LODI
(proposed)
Easements,
Excavation &
Developer
Developer
Developer
Developer
Substructures
Utility rates
Service
Developer pays
Developer
Developer
Developer
Connections
additional cost + 35% tax
Monthly customer charge
Utility rates
Utility rates
Line Extensions
Developer pays
Utility rates
Developer pays
Developer
o
additional cost + 35% tax
additional cost
Backbone
Expansion
Utility rates
Utility rates
Developer
Developer
SFR @ 200A
PG&E
SMUD
ROSEVILLE
LODI
(proposed)
Easements,
Excavation &
Developer
Developer
Developer
Developer
responsibility
responsibility
responsibility
responsibility
Substructures
$1,918 Allowance
(incl. 35% tax)
Service
Connections
Developer pays
$1,300 + design fee
$1,875
Actual cost
additional cost + 35% tax
Monthly customer charge
Un -used Allowance
applied to Line Extension
Utility rates
Developer pays
Developer may be
Line Extensions
o
additional cost + 35% tax
Utility rates
charged for
Actual cost
Excess Service
significant off-site
Allowance refunded to
costs
Developer
Backbone
Utility rates
Utility rates
$1,211
$826
Expansion
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Project Funding by Phase and Funding Source
ATTACHMENTS
Funding Sources
Funding
Amounts
Project Phases
PA&ED PS&E R/W CON
Totals
1 Measure "K" Renewal Total
$489,644
$489,644
$489,644
2 Measure "K" Renewal (LSR)
$1,000,000
$972,356
$27,644
$1,000,000
3 Measure "K" (Central City Rail Safety)
$418,000
$418,000
$418,000
4 Regional Surface Transportation Program
$1,631,000
$600,000
$929,000 1
$102,000
$1,631,000
5 Union Pacific Railroad Contribution
$700,000
$700,000
$700,000
6 Regional Tramportation. Impact Fee
$1,000,000
$1,000,000
$1,000,000
7 Highway -Railroad Crossing Safety Account
$1,000,000
$1,000,000
$1,000,000
8 Public Utilities Commision Grant
$2,000,000
$2,000,000
$2,000,000
9 ISurface Transportation Program ,
$12,100,000
$12,100,000
$12,100,000
Totals:
$20,338,644
$600,000
$929,000 $1,880,000
$16,929,644
$20,338,644
Measure "K" Renewal
Harney/SR99 Co -Op
Project Total
Remaining Funds
Harney Lane Widening Co -Op
Project Total
Remaining Funds
$573,644
$358,000
$215,644
$600,000
$326,000
$274,000
Total $489,644
Estimated Project Total $20,338,644