HomeMy WebLinkAboutAgenda Report - August 17, 2016 C-13 PHAGENDA ITEM
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Set Public Hearing for September 7, 2016 to Consider Adopting a Resolution
Eliminating the Reduced Residential Impact Fee Structure for Low- and Medium -
Density Zoning Designations
MEETING DATE: August 17, 2016
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Set public hearing for September 7, 2016 to consider adopting a
resolution eliminating the Reduced Residential Impact Fee Structure
for low- and medium -density zoning designations.
BACKGROUND INFORMATION: The Impact Mitigation Fee program was adopted by the Lodi City
Council on August 15, 2012. At that time, residential development
activity in Lodi was essentially non-existent.
At the request of the building community, and in response to the housing downturn created by the Great
Recession, Council approved a reduced residential impact fee schedule to financially incentivize the
development of new residential housing units in all density categories. The reduced fee schedule applies
to only residential land uses and represents a discount of approximately 60 percent.
Beginning in 2014, the residential development activity in Lodi started to gain substantial momentum.
Currently, there are four active residential developments totaling over 700 single-family lots, along with
various, smaller infill developments that have been approved. Additionally, there are three multi -family
projects consisting of nearly 400 units currently making their way through the approval process. The
majority of these approved units will remain subject to the current reduced rate structure through
independent development agreements that extend through December 2019.
It is projected that slightly over 600 residential units could be occupied by the end of 2019. While this
projection is quite optimistic based on Lodi's historic growth rate, it is possible due to the amount of
approved low- and medium -density residential units available for construction. Because most of these
units are subject to the reduced fees through development agreements, it could be argued that over the
next three years, the City's investment to incentivize development could reach an estimated $5 million in
one-time reduced impact fees. However, it must be acknowledged this incentivized residential growth
will be financially beneficial to City residents and businesses because those 600 units could also
generate an estimated $600,000 annually in property tax and other revenues that will contribute to the
long term financial health and stability of the community.
On July 26, 2016, Staff provided a Council shirtsleeve presentation including an overview of the current
impact fee structure, the current residential development climate, and a comparison of impact fees in Lodi
with surrounding cities. The focus of the presentation was eliminating the reduced residential impact fee
structure. Feedback at this meeting suggests the City Council and the Building Industry Association of the
APPROVED:
Step en SchwaE?auer, City Manager
KAWP\DEV_SERWrnpact Fees\Public Hearing Sept 7 2016\setPH_Elim_Reduced_Fees.doc 8/2/16
Set Public Hearing for September 7, 2016 to Consider Adopting a Resolution Eliminating the Reduced Residential Impact Fee Structure for Low- and Medium -
Density Zoning Designations
August 17, 2016
Page 2
Greater Valley generally agree that the reduced fees have done the job to spur residential growth in the City
of Lodi and it is now appropriate to eliminate the reduced fee structure. To maintain the incentive to
construct high-density and infill projects, staff recommends retaining the reduced fee structure for high-
density zoning designations and infill projects of all densities that consist of less than 10 lots. All reduced
impact fees would expire on December 31, 2019.
The summary of the regular fees is provided in Exhibit A. A summary of the reduced fees is provided in
Exhibit B. The action requested is to set a public hearing for September 7, 2016 to consider adopting a
resolution eliminating the reduced residential impact fee structure for low- and medium -density zoning
destinations effective November 7, 2016.
FISCAL IMPACT: Building projections suggest the reduced impact fees, along with the
improved economy have resulted in substantial building activity that will
generate approximately $1,000 per unit annually in property taxes and
other revenues. Continued underfunding of the City's Development Impact
Fee Program is not recommended.
FUNDING AVAILABLE: Not applicable.
C1_2E&C
Charles E. Swimley Jr.
Public Works Director
CES/CES/tdb
Attachments
K:\WP\DEV_SERV\Impact Fees\Public Hearing Sept 7 2016\setPH_Elim_Reduced_Fees.doc 8/2/16
Exhibit A
Impact Mitigation Fee Program
Schedule of Fees
Table A-1: Water and Wastewater Fees
Meter Size
Water
Wastewater
5/8 -inch meter
$2,079
$2,831
3/4 -inch meter
$3,103
$4,225
1 -inch meter
$5,181
$7,056
1 1/2 -inch meter
$10,332
$14,070
2 -inch meter
$16,537
$22,521
3 -inch meter
$31,026
$42,253
4 -inch meter
$51,721
$70,435
6 -inch meter
$103,411
$140,828
8 -inch meter
$165,464
$225,333
10 -inch meter
$237,880
$323,951
Table A-2: Transportation, Police, Fire, General City Facilities, Park and
Art in Public Places Fees
RESIDENTIAL LAND USES
NON-RESIDENTIAL LAND USES
Low
Medium
High
Office/
Density
Density
Density
Retail
Medical
Industrial
Fee Component
(per Unit)
(per Unit)
(per Unit)
(per 1,000 SF)
(per 1,000 SF)
(per 1,000 SF)
Transportation
$711
$386
$386
$1,199
$872
$443
Police
$753
$634
$528
$330
$528
$176
Fire
$385
$324
$270
$338
$540
$180
Park
$3,890
$3,276
$2,730
$406
$650
$217
General City Facilities
$617
$519
$433
$270
$433
$144
Art in Public Places
$80
$67
$56
$35
$56
$19
Table A-3: Residential Electric Utility Fees
Table A-4: Non -Residential Electric Utility Fees
240
Volts
Single Phase Panel
480
Volts
60 amps
$248
100 amps
$413
125 amps
$516
200 amps
$826
400 amps
$1,652
600 amps
$2,478
Table A-4: Non -Residential Electric Utility Fees
208
Volts
240
Volts
480
Volts
Single Phase Panel
60 amps
n/a
$248
n/a
100 amps
n/a
$413
n/a
125 amps
n/a
$516
n/a
200 amps
n/a
$826
n/a
400 amps
n/a
$1,652
n/a
600 amps
n/a
$2,478
n/a
Three Phase Panel
200 amps
$1,178
$1,359
$2,718
400 amps
$2,356
$2,718
$5,437
600 amps
$3,534
$4,077
$8,155
800 amps
$4,712
$5,437
$10,873
1000 amps
$5,890
n/a
$13,591
1200 amps
$7,068
n/a
$16,310
1600 amps
$9,423
n/a
$21,746
2000 amps
$11,779
n/a
$27,183
2500 amps
$14,724
n/a
$33,979
3000 amps
$17,669
n/a
$40,774
Table A-5: Storm Drainage Fees
RESIDENTIAL LAND USES
Low
Medium
High
Density
Density
Density
Fee Component (per Unit)
(per Unit)
(per Unit)
Storm Drainage - Zone 1 $1,394
$697
$561
Drainage - Zone 2
$4,237 $2,118 $1,703
NON-RESIDENTIAL LAND USES
Office/
Retail Medical Industrial
(per Acre) (per Acre) (per Acre)
$14,640 $14,640 $15,686
$44,485 $44,485 $47,663
Table A-6: South Wastewater Trunk Line Fees
RESIDENTIAL LAND USES
Low
Medium
High
Density
Density
Density
Fee Component (per Unit)
(per Unit)
(per Unit)
South Wastewater Trunk Line $1,181
$994
$829
NON-RESIDENTIAL LAND USES
Office/
Retail Medical Industrial
(per 1,000 sf) (per 1,000 sfl (per 1,000 s f)
$1,096 n/a n/a
1 Applies only to development that will benefit from construction of the wastewater trunk line serving the southern area
of the City.
Exhibit B
Impact Mitigation Fee Program
Schedule of Reduced Fees
Table B-1: Water and Wastewater Fees
Meter Size
Residential
Water Wastewater
Non -Residential
Water Wastewater
5/8 -inch meter
$846
$1,152
$2,079
$2,831
3/4 -inch meter
$1,263
$1,720
$3,103
$4,225
1 -inch meter
$2,109
$2,873
$5,181
$7,056
1 1/2 -inch meter
$4,206
$5,728
$10,332
$14,070
2 -inch meter
$6,732
$9,168
$16,537
$22,521
3 -inch meter
$12,631
$17,201
$31,026
$42,253
4 -inch meter
$21,056
$28,674
$51,721
$70,435
6 -inch meter
$42,099
$57,331
$103,411
$140,828
8 -inch meter
$67,360
$91,733
$165,464
$225,333
10 -inch meter
$96,841
$131,880
$237,880
$323,951
Table B-2: Transportation, Police, Fire, General City Facilities, Park and
Art in Public Places Fees
RESIDENTIAL LAND USES
NON-RESIDENTIAL LAND USES
Low
Medium
High
Office/
Density
Density
Density
Retail
Medical
Industrial
Fee Component
(per Unit)
(per Unit)
(per Unit)
(per 1,000 SF)
(per 1,000 SF)
(per 1,000 SF)
Transportation
$289
$157
$157
$1,199
$872
$443
Police
$307
$258
$215
$330
$528
$176
Fire
$157
$132
$110
$338
$540
$180
Park
$1,584
$1,334
$1,111
$406
$650
$217
General City Facilities
$251
$211
$176
$270
$433
$144
Art in Public Places
$33
$27
$23
$35
$56
$19
Table B-3: Residential Electric Utility Fees
Table B-4: Non -Residential Electric Utility Fees
240 Volts
Single Phase Panel
480
Volts
60 amps
$101
100 amps
$168
125 amps
$210
200 amps
$336
400 amps
$673
600 amps
$1,009
Table B-4: Non -Residential Electric Utility Fees
208
Volts
240
Volts
480
Volts
Single Phase Panel
60 amps
n/a
$248
n/a
100 amps
n/a
$413
n/a
125 amps
n/a
$516
n/a
200 amps
n/a
$826
n/a
400 amps
n/a
$1,652
n/a
600 amps
n/a
$2,478
n/a
Three Phase Panel
200 amps
$1,178
$1,359
$2,718
400 amps
$2,356
$2,718
$5,437
600 amps
$3,534
$4,077
$8,155
800 amps
$4,712
$5,437
$10,873
1000 amps
$5,890
n/a
$13,591
1200 amps
$7,068
n/a
$16,310
1600 amps
$9,423
n/a
$21,746
2000 amps
$11,779
n/a
$27,183
2500 amps
$14,724
n/a
$33,979
3000 amps
$17,669
n/a
$40,774
Drainage - Zone 1
Drainage - Zone 2
Table B-5: Storm Drainage Fees
RESIDENTIAL LAND USES
NON-RESIDENTIAL LAND USES
Low
Medium
High
Office/
Density
Density
Density
Retail Medical Industrial
(per Unit)
(per Unit)
(per Unit)
(per Acre) (per Acre) (per Acre)
$567
$284
$228
$14,640 $14,640 $15,686
$1,556 $778 $627 1 $40,834 $40,834 $43,871
Table B-6: South Wastewater Trunk Line Fees
RESIDENTIAL LAND USES NON-RESIDENTIAL LAND USES
Low Medium High Office/
Density Density Density Retail Medical Industrial
Fee Component (per Unit) (per Unit) (per Unit) (per 1,000 sf) (per 1,000 sf) (per 1,000 sf)
South Wastewater Trunk Line $481 $405 $337 $446 n/a n/a
1 Applies only to development that will benefit from construction of the wastewater trunk line serving the southern area
of the City.
G 13
Jennifer Ferraiolo
From: Jennifer Ferraiolo
Sent: Wednesday, August 17, 2016 2:45 PM
To: Mike Lusk
Cc: City Council; Steve Schwabauer; Janice Magdich; Charles Swimley
Subject: RE: Blue Sheet Agenda Item C-13 meeting of August 17, 2016
Thank you for your email. It was received by the City Council and forwarded to the City Manager and Public Works
Department for information, response, and/or handling. In addition, your correspondence will be provided to Council as
a "Blue Sheet" item at tonight's meeting and made a part of the official record.
Jennifer M. Ferraiolo, CMC
City Clerk
P.O. Box 3006
Lodi, CA 95241-1910
(209)333-6702
(209)333-6807 FAX
From: Mike Lusk [mailto:mclusk@softcom.net]
Sent: Wednesday, August 17, 2016 2:42 PM
To: City Council
Subject: Blue Sheet Agenda Item C-13 meeting of August 17, 2016
BLUE SHEET FOR AGENDA ITEM C-13 CITY COUNCIL MEETING OF AUGUST 17, 2016
SUBJECT RESIDENTIAL IMPACT FEE STRUCTURE
INCLUDED HERE IS MY DISCUSSION ON THESE IMPACT FEES AT THE SHIRTSLEEVE MEETING OF JULY 26, 2016.
UPON REVIEWING AGENDA ITEM C-13 FOR THE CITY COUNCIL MEETING ON AUGUST 17, 2016 1 WOULD REQUEST THAT
THE CITY OF LODI RETURN AT LEAST TO THE REGULAR FEE SCHEDULE FOR ALL DENSITIES OF RESIDENTIAL BUILDING AND
CONSIDER RAISING THESE FEES. I UNDERSTAND THAT AGREEMENTS FOR REDUCED FEES HAVE ALREADY REDUCED IMF
FUNDS TO THE CITY WITH CURRENT AND PROPOSED DEVELOPMENT IN PROGRESS. ASI NOTED IN MY JULY 26TH
DISCUSSION IT TAKES ON AVERAGE 10 YEARS FOR THE CITY TO BREAK EVEN ON THESE LOST IMPACT FEES BEFORE IT
CAN SAY IT IS OF ANY BENEFIT TO THE CITIES BUDGETS.
I AS A CITIZEN TAX AND RATE PAYER OF THE CITY OF LODI DO NOT WANT TO SUBSIDIZE DEVELOPERS PROFITS WITH
THESE LOWER FEE SCHEDULES. IT CREATES A DOUBLE IMPACT ON THE CITIZENS OF LODI, IN THE FIRST INSTANCE OF
NOT COLLECTING THESE FEES AND SECONDLY BY REQUIRING THE CITIZENS TO PICKUP THE SHORTFALL IN THE FUTURE
BUDGETS FOR CITY FUNCTIONS THAT WOULD BE COVERED BY THESE FEES UNTIL THE BREAK EVEN PERIOD ARRIVES
WITH PROPERTY TAXES COLLECTED AS IN MY EXAMPLE.
THE CITIES ARGUMENT OF PROPERTY TAX REVENUS BENEFIT FOR LONG TERM FINANCIAL BENEFIT IS JUST ANOTHER PAY
TO PLAY AGREEMENT WHERE THE CITIZENS OF LODI SUBSIDIZE UP FRONT AN ACTION OF THE CITY WHICH DOES NOT
BENEFIT THE CITIZENS OF LODI IMMEDIATELY AND COSTS THEM MORE MONEY IN THE LONG RUN.
Mike Lusk, Lodi
AGENDA ITEM B-02 JULY 26, 2016 IMPACT MITIGATION FEE
City Manager Schwabauer's example of Property Tax Revenues the City of Lodi
received per residential unit per year during the Council Meeting July 6, 2016:
Property Tax at 1% and Cities portion of this 1% is 16%
ASSESSED PROPERTY VALUE 1% TAX 16% TO CITY
$200,000.00
$2,000.00
$320.00
$300,000.00
$3,000.00
$480.00
$400,000.00
$4,000.00
$640.00
$500,000.00
$5,000.00
$800.00
$600,000.00
$6,000.00
$960.00
PROFIT
IMPACT MITIGTION FEE SCHEDULE
LOT DENSITY REDUCED FEES REGULAR
FEES SAVINGS TO DEVELOPER
i
MARGIN/LOSS OF CITY REVENUE
LOW
DENSITY $5,940.00/UNIT
00/UNIT
MEDIUM
DENSITY $5,438.00/UNIT
UNIT
HIGH
DENSITY $3,958.00/UNIT
00/UNIT
$14,590.00/UNIT $8,650.
$13,360.00/UNIT $7,922.00/
PAGE 1
$9,726.00/UNIT $5,768.
USING LOW DENSITY AVERAGE OF $500,000.00 THE CITY WOULD RAISE
$800.00/UNIT IN PROPERTY TAX REVENUE PER YEAR.
THE CITY LOSES $8,650.00/UNIT WITH THE REDUCED FEE SCHEDULE.
DIVIDING THE $800.00/UNIT PROPERTY TAX PER YEAR INTO THIS REDUCED FEE, IT
TAKES THE CITY 10.8 YEARS TO BREAK EVEN ON THIS UP FRONT SUBSIDY TO
DEVELOPERS.
USING THE BRIEF OVERVIEW IN THE CITY PRESENTATION THE TOTAL NUMBER
OF LOTS IS 1337.
NOT KNOWING THE BREAK DOWN OF DENSITY OF THIS COUNT I AM USING LOW
DENSITY IN THIS EXAMPLE.
THE CITY LOSS WITH LOWER FEE SCHEDULE IS $8,650.00/UNIT TIMES TOTAL UNIT
COUNT OF 1337 EQUALS $11,565,050.00 OF INITIAL IMPACT MITIGATION FEES.
3
THE LOSS OF THESE IMPACT FEES IF NOT A VIOLATION OF THE PROPOSITION
218 REGUARDING SEWER AND WATER ENTERPISE FUNDS USE IS AT LEAST A
VIOLATION IN THE SPIRIT OF THE LAW AND THE PUBLIC TRUST. VIOLATION IN
THAT THESE FUNDS ARE DIVERTED AWAY FROM THE ENTERPRISE BUDGETS
THEREBY INFLATING THEM AND RESULTING IN RATE INCREASES.
I WOULD ARGUE THAT THE IMF ARE A REVENUE STREAM FOR THE SEWER AND
WATER ENTERPRISE FUNDS AND UNDER PROP 218 THE FULL IMPACT OF THE
DEVELOPMENT MUST BE COLLECTED AND DISTRIBUTED TO THE ENTERPRISE
FUNDS AND NOT BE REDUCED BY THE CITY.
PAGE 2
IN RELATION TO OTHER PARTS OF THE CITY BUDGET THE 10 PLUS YEAR
RECOVERY TIME INFLATS CITIZENS OBLIGATION ON ALL PARTS OF THE BUDGET,
ESPECIALLY ON INFASTRUCTURE WARE AND REPLACEMENT.
LODI'S REGULAR FEE SCHEDULE IS THE LOWEST IN THE SURROUNDING
AREA. THIS FEE IS ALREADY NOT ONLY A BENEFIT TO THE DEVELOPER PROFIT
MARGINS IT STILL ALLOWS LODI HOUSING TO BE COMPETITIVE WITHOUT THE
CITIZENS OF LODI SUBSIDIZING THE DEVELOPER THROUGH REDUCED IMPACT
MITIGATION FEES.
I REALIZE THERE ARE SOME VARIBLES THAT AFFECT THE DOLLAR AMOUNT IN
MY PRESENTATION BUT THE ARGUMENT PRESENTED HERE IS STILL VALID.
I AM IN FAVOR OF AT LEAST RETURNING TO THE REGULAR FEE SCHEDULE AND
IN LIGHT OF THE FACT THEY ARE THE LOWEST IN THE AREA THE COUNCIL SHOULD
CONSIDER RAISING THEM HIGHER.
RESPECTFULLY
MIKE LUSK, LODI
4
Please immediately confirm receipt
this
333-6702
CITY OF LODI
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
A�]VTISING INSTRUCTIONS
SUBJECT: PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION
ELIMINATING REDUCED RESIDENTIAL IMPACT FEE STRUCTURE FOR
LOW- AND MEDIUM -DENSITY ZONING DESIGNATIONS
PUBLISH DATE: SATURDAY, AUGUST 20, 2016
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO:
LNS ACCT. #0510052
DATED: THURSDAY, AUGUST 18, 2016
JENNIFER M. FERRAIOLO, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
ORDERED BY: JENNIFER M. FERRAIOLO
CITY CLERK
PAMELA M. FARRIS
DEPUTY CITY CLERK
ELIZABETH BURGOS
ADMINISTRATIVE CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
Emailed to the Sentinel at dianer@lodinews.com at
LNS Phoned to confirm *e 101 of:a]I.,0e _ at T
forms\advins.doc
DECLARATION OF POSTING
NOTICE OF PUBLIC HEARING TO CONSIDER RESOLUTION
ELIMINATING REDUCED RESIDENTIAL IMPACT FEE STRUCTURE
FOR LOW- AND MEDIUM -DENSITY ZONING DESIGNATIONS
On Thursday, August 18, 2016, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider resolution eliminating reduced Residential Impact
Fee Structure for Low- and Medium -Density Zoning Designations (attached and marked
as Exhibit A), was posted at the following locations:
Lodi City Clerk's Office
Lodi City Hall Lobby
Lodi Carnegie Forum
WorkNet Office
I declare under penalty of perjury that the foregoing is true and correct.
Executed on August 18, 2016, at Lodi, California.
PAMELA M. FARRIS
DEPUTY CITY CLERK
WAdministration\CLERK\Public Hearings\AFFADAVITS\DECPOST.DOC
ORDERED BY:
JENNIFER M. FERRAIOLO
CITY CLERK
ELIZABETH BURGOS
ADMINISTRATIVE CLERK
CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: September 7, 2016
Time: 7:00 p.m.
For information regarding this notice please contact:
Jennifer M. Ferraiolo
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
EXH - BIT A
NOTICE IS HEREBY GIVEN that on Wednesday, September 7, 2016, at the hour of
7:00 p.m., or as soon thereafter as the matter may be heard, the City Council will
conduct a public hearing at the Carnegie Forum, 305 West Pine Street, Lodi, to consider
the following matter:
a) Resolution eliminating reduced Residential Impact Fee Structure for Low -
and Medium -Density Zoning designations.
Information regarding this item may be obtained in the Public Works Department,
221 West Pine Street, Lodi, (209) 333-6706. All interested persons are invited to
present their views and comments on this matter. Written statements may be filed with
the City Clerk, City Hall, 221 West Pine Street, 2nd Floor, Lodi, 95240, at any time prior
to the hearing scheduled herein, and oral statements may be made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only those
issues you or someone else raised at the public hearing described in this notice or in
written correspondence delivered to the City Clerk, 221 West Pine Street, at or prior to
the close of the public hearing.
By Order of the Lodi City Council:
., xx
J
n er ioio
ity Clerk
Dated: August 17, 2016
A roved as to form:
Janice ❑ agdich
`4 . r�ney
8/18/16