HomeMy WebLinkAboutAgenda Report - October 19, 2016 G-01 PHAGENDAITEM (3 1
&J& CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Conduct Public Hearing to Consider Adopting a Resolution Eliminating the
Reduced Residential Impact Fee Structure for Low- and Medium -Density Zoning
Designations
MEETING DATE: October 19, 2016
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Conduct public hearing 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: A
Stephen Schwa bauer,ity Manager
KAWPOEV_SEMImpact Fees\Public Hearing Sept 7 2 1 H�Elim_Reduced_Fees.doc 10/3/16
Conduct Public Hearing to Consider Adopting a Resolution Eliminating the Reduced Residential Impact Fee Structure for Low- and Medium -Density Zoning
Designations
October 19, 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.
On August 17, 2016, Council set a public hearing for September 7, 2016 to consider eliminating the reduced
residential impact fee structure. The public hearing process was re-initiated to account for the neighborhood
park fee being mistakenly excluded from the fee schedules (Exhibits A & B) attached to the August 17, 2016
Council action. Both exhibits have been revised to include the neighborhood park fee, and the public
hearing scheduled for September 7, 2016 was continued until October 19, 2016.
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 conduct the public hearing to consider adopting a resolution
eliminating the reduced residential impact fee structure for low- and medium -density zoning designations
effective December 19, 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.
Charles E. Swimley Jr.
Public Works Director
CES/CES/tdb
Attachments
K:\WP\DEV_SERV\Impact Fees\Public Hearing Sept 7 2016\PH_Elim_Reduced_Fees.doc 10/3/16
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 (Citywide)
$3,890
$3,276
$2,730
$406
$650
$217
Park (Neighboorhood)
$2,541
$2,140
$1,783
$266
$428
N/A
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 (Citywide)
$1,584
$1,334
$1,111
$406
$650
$217
Park (Neighborhood)
$1,016
$856
$713
$266
$428
N/A
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.
RESOLUTION NO. 2016-188
A RESOLUTION OF THE LODI CITY COUNCIL
ELIMINATING THE REDUCED RESIDENTIAL IMPACT
FEE STRUCTURE FOR LOW- AND MEDIUM -DENSITY
ZONING DESIGNATIONS AND IN -FILL PROJECTS OF
MORE THAN TEN (10) LOTS
WHEREAS, Resolution No. 2012-142 approved Impact Mitigation Fee Program
Schedule of Reduced Fees; and
WHEREAS, the reduced fee schedule applies to only residential land uses and
represents a discount of approximately 60 percent; and
WHEREAS, staff recommends elimination of the reduced residential impact fee
structure for low- and medium -density zoning designations and in -fill projects of more
than ten (10) lots effective December 19, 2016.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
eliminate the reduced residential impact fee structure for low- and medium -density
zoning designations and in -fill projects of more than ten (10) lots, as outlined on
Exhibit A, attached hereto and made a part of this Resolution, with an effective date of
December 19, 2016.
Dated: October 19, 2016
I hereby certify that Resolution No. 2016-188 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held October 19, 2016, by the
following vote:
AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
NNIFE FERRAIOLO
ity Clerk
2016-188
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
IFee Component
Park (Citywide)
Park (Neighboorhood)
General City Facilities
Art in Public Places
RESIDENTIAL LAND USES I NON-RESIDENTIAL LAND USES
Low
Density
(per Unit)
Medium
Density
(per Unit)
High
Density
(per Unit)
Retail
(per 1,000 SF)
Office/
Medical
(per 1,000 SF)
Industrial
(per 1,000 SF)
$711
$386
$386
$1,199
$872
$443
$753
$634
$528
$330
$528
$176
$385
$324
$270
$338
$540
$180
$3,890
$3,276
$2,730
$406
$650
$217
$2,541
$2,140
$1,783
$266
$428
N/A
$617
$519
$433
$270
$433
$144
$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 Pha Pagel
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
)m onent (per Unit) (per Unit) (per Unit)
Drainage - Zone 1 $1,394 $697 $561
Storm 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
NON-RESIDENTIAL LAND USES
Low
Medium
High
Office/
Density
Density
Density
Retail Medical Industrial
om onent (per Unit)
(per Unit)
(per Unit)
(per 1,000 sf) (per 1,000 sf) (per 1,000 sf)
Wastewater Trunk Liner $1,181
$994
$829
$1,096 n/a n/a
I Applies only to development that will benefit from construction of the wastewater trunk line serving the southern area
of the City.
The City of Lodi
Public Works
Engineering
t phi
Public Hearing to Consider
Eliminating Reduced Residential Impact Fee
Structure
October 19, 2016
Presentation Outline
• Brief overview
• Reduced vs. regular fees
• Comparison with other cities
• Potential impacts on development
• July 26, 2016 Shirtsleeve feedback
• Recommendation
Brief Overview
Active residential development projects
• Rose Gate
• Reynolds Ranch Phases 1-3
• Villa Fiore
• The Vine
• Harvest Crossing
• Reynolds Ranch Multi -Family
• Eden Housing
Future projects
• Rose Gate 2
232
Lots
220
Lots
200
Lots
57
Lots
42 Lots
298 Units
80 Units
250 Lots
Reduced vs. Regular Fees
• Low -Density Residential
• Reduced Fee $ 5,940 per unit
• Regular Fee $ 14,590 per unit
• Medium -Density Residential
• Reduced Fee
• Regular Fee
$ 5,438 per unit
$ 13,360 per unit
• High -Density Residential
• Reduced Fee $ 3,958 per unit
• Regular Fee $ 9,726 per unit
Impacts on Development
• Villa Fiore, Rose Gate, Reynolds Ranch (LDR), The
Vine:
• Minimal impacts — protected by development agreements (3
years) — or most fees already paid
• Rose Gate 2, Reynolds Ranch (HDR) and infill
projects :
• Either pre -pay reduced fees during adoption period
• Requires Council approval
• Or, pay regular fees upon certificate of occupancy
Shirtsleeve Feedback
• Maintain reduced fees for high-density zoning
• Maintain reduced fees for infill (less than 10 lots)
• Eliminate reduced fees for low- and medium -densities
• Proceed with process
tem
�ij"19 1111;1Hf ...rLl7���
f
Recommendation
• Adopt resolution eliminating the reduced residential
impact fee structure for low- and medium -density
zoning designations.
Questions
?
—Since 1944 —
VIC MYERS INC
SHEET METAL PRODUCTS
POST OFFICE BOX 235
LODI, CALIFORNIA 95241
City Clerk
City Hall
221 West Pine Street, 2nd floor
Lodi CA 95240
To Whom It May Concern,
-
RECEIVED rq r
320 S SACRAMENTO STREET
LODI, CALIFORVIffM; i4
TELEPHONE (209) 334-5700
FAX (209) 334-4690
License #537172
I am writing in regard to: a). Adopting a resolution approving the Planning Commission's
recommendation to authorize 28 Medium -Density Residential Growth Management Allocations
for the Camper - Sacramento Street Subdivisions.
I am already on record as a property and business owner on that block of Sacramento Street. I
have stated previously that this project should not be approved without measures being taken to
slow traffic on that block. I'm in favor of speed bumps or a similar method to slow the constant
speeding traffic. It is my hope that your primary concern will be the safety of the current
residents (and workers) in the area, as well as future residents.
I am against this project without assurance that safety measures will be part of the proposed
plan.
Sincerely,
VhnsD.Munro
640 I
Jennifer Ferraiolo
From: Jennifer Ferraiolo
Sent: Wednesday, October 19, 2016 11:16 AM
To: Mike Lusk
Cc: City Council; Steve Schwabauer; Janice Magdich; Charles Swimley
Subject: RE: Blue sheet Agenda Item G-01 IMF Oct 19 2016 meeting
Thank you for your email. It was received by the City Council and forwarded to the City Manager's office and Public
Works Department for information, response, and/or handling. In addition, your correspondence will be provided to
Council as a Blue Sheet item for tonight's meeting.
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, October 19, 2016 11:04 AM
To: Jennifer Ferraiolo; JoAnne Mounce - External
Subject: Fwd: Blue sheet Agenda Item G-01 IMF Oct 19 2016 meeting
Forwarded Message
Subject:Blue sheet Agenda Item G-01 IMF Oct 19 2016 meeting
Date:Wed, 19 Oct 2016 10:47:00 -0700
From:Mike Lusk <mcluskCaisoftcom.net>
To:cltvclerk@lodi.goy, Jmounce@lodicitycouncil.co_m
Lodi City Council
October 19, 2016
Blue Sheet on Agenda Item G-01 Council Meeting of Oct. 19, 2016
CITY OF LODI IMPACT MITIGATION FEE PROGRAM UPDATE AUGUST 2012
14. IMPLEMENTATION AND ADMINISTRATION IMPLEMENTATION
According to the California Government Code, prior to levying a new fee or increasing an
existing fee, an agency must hold at least one open and public meeting. At least ten days prior to
this meeting, the agency must make data on infrastructure costs and funding sources available to
the public. Notice of the time and place of the meeting and a general explanation of the matter
are to be published in accordance with Section 6462a of the Government Code, which states that
publication of notice shall occur for ten days in a newspaper regularly published once a week or
more. The City may then adopt the new fees at the second reading. The new or increased fees
shall be effective no earlier than 60 days following the final action on the adoption or increase of
the fees.
FEE ADJUSTMENTS
The fees may be adjusted in future years to reflect revised facility standards, receipt of funding
from alternative sources (i.e., state or federal grants), revised facilities or costs, or changes in
demographics or the land use plan. In addition to such adjustments, the Pees will be inflated each
year by the Engineering News.Reco:rd 24 -city average construction cost index.
The fee categories summarized in this FMFP report may not be applicable to specialized
development projects in the City. For example, development of a cemetery, golf course, or
stadium would not fall under any of the fee categories in this study. For specialized development
projects, the City will review the impacts and decide on an applicable ad hoc fee.
FEE PROGRAM ADMINISTRATIVE REQUIREMENTS
The Government Code requires the City to report every year and every fifth year certain
financial information regarding the fees. The City must make available within 180 days after the
last day of each fiscal year the following information from the prior fiscal year:
1. A brief description of the type of fee in the account or fund
2. The amount of the fee
3. The beginning and ending balance in the account or fund
4. The amount of the fee collected and the interest earned
5. An identification of each public improvement for which fees were expended and the
amount of expenditures
6. An identification of an approximate date by which time construction on the
improvement will commence if it is determined that sufficient funds exist to complete
the project
page 1
7. A description of each interfund transfer or loan made from the account and when it
will be repaid
8. Identification of any refunds made once it is determined that sufficient monies have
been collected to fund all fee related projects
Source: City of Lodi Impact Mitigation Fee Program Update August 2012
Lodi Impact Fee Mitigation Program Page 173.
4. WATER
BACKGROUND
Part of Section:
In 2003, the City entered into a forty -year agreement with the Woodbridge Irrigation District
(WID) to purchase 6,000 AF of water per year from the Mokelumne River. In 2008, the
agreement was amended to forty-four years and included banking of 42,000 acre feet of water
purchased during project development. In 2011, the City began construction of an 8 million
gallon per day (mgd) water treatment plant with an estimated total cost of about $40 million. In
the fall of 2010, the City issued $38.7 million in water revenue bonds to help fund the
construction of the new surface water treatment facilities necessary to treat and distribute water
purchased from the WID.
The proposed water system fee is intended to reflect the cost of water treatment capacity,
including financing costs, and as well as costs to integrate the surface water supply into the
distribution system. Additional supply facilities include a new 1.5 MG water storage tank and an
additional groundwater well to help manage peak demands throughout the distribution system.
For water fee calculation purposes, all customers (existing and new) will receive a blended water
supply of both groundwater and surface water. The water fee calculation reflects the costs
associated with this blended water supply.
Source: City of Lodi Impact Mitigation Fee Program Update August 2012
Lodi Impact Fee Mitigation Program Page 120
NEXUS REQUIREMENTS
The water fee component meets the Mitigation Fee Act nexus requirements as described in
Table 4-9.
Table 4-9: Water Fee Nexus Requirements (Part Of Section)
New residential and non-residential
development will generate additional residents
and employees in the City of Lodi who will
increase the demand for water. The water
fees collected from new development will equal
the cost of the portion of the facilities
attributable to new development. Residential
and non-residential development will be
page 2
responsible for their fair -share portion of the
total cost based on the estimated water use of
the individual land uses.
Source: City of Lodi Impact Mitigation Fee Program Update August 2012
Impact Fee Mitigation Program Page 126
5. WASTEWATER
WASTEWATER TREATMENT PLANT
BACKGROUND (Part of Section)
The proposed wastewater treatment impact mitigation fee is intended to reflect the cost of
wastewater treatment capacity, including financing costs, resulting from the expansions from
5.8 mgd to 6.3 mgd and then to 8.5 mgd. This allows the analysis to incorporate a broader
range of treatment improvements and to average the costs from each phase of expansion. In
addition, debt issued in 1991 to help finance the earlier expansion were refunded and rolled into
new debt issued in 2007, resulting in a commingling of debt costs across multiple debt issues
and phases of plant expansion.
Source: City of Lodi Impact Mitigation Fee Program Update August 2012
Lodi Impact Fee Mitigation Program Page 127
BACKGROUND (Part of Section)
The proposed wastewater fee is intended to cover the future development's share of debt service payments.
Analysis of debt financing indicates that 45.3 percent of remaining debt service obligations is associated with
improvements that benefit new development. Wastewater conveyance costs will be discussed later in this
section.
Source: City of Lodi Impact Mitigation Fee Program Update August 2012
Lodi Impact Fee Mitigation Program Page 128
FEE METHODOLOGY (Part of Section First Paragraph)
The purpose of the wastewater fee is to ensure that new development pays a proportionate share
of the cost of constructing wastewater treatment and ancillary facilities needed to accommodate
new wastewater demands within the City. The revenue generated from the wastewater fee will
be used to assist the City in making debt service payments related to the 2003, 2004, and 2007
COPs. Debt proceeds are being used to finance the construction of wastewater treatment
facilities.
Source: City of Lodi Impact Mitigation Fee Program Update August 2012
Lodi Impact Fee Mitigation Program Page 128
Page 3
NEXUS REQUIREMENTS
The Wastewater Treatment Plant fee component meets the Mitigation Fee Act nexus
requirements, as described in Table 5-3.
Table 5-3: Wastewater Treatment Plant Nexus Requirement (Part of Section)
New residential and non-residential development
will generate additional residents and employees
in the City of Lodi who will increase the demand
for wastewater. The wastewater fees collected
from new development will equal the cost of the
portion of the facilities attributable to new
development. Residential and non-residential
development will be responsible for their fairshare
portion of the total cost based on the
estimated wastewater use of the individual land
uses.
Source: City of Lodi Impact Mitigation Fee Program Update August 2012
Lodi Impact Fee Mitigation Program Page 131 and 32
14. IMPLEMENTATION AND ADMINISTRATION
FEE ADJUSTMENTS
The fees may be adjusted in future years to reflect revised facility standards, receipt of funding
from alternative sources (i.e., state or federal grants), revised facilities or costs, or changes in
demographics or the land use plan. In addition to such adjustments, the fees will be inflated each
year by the Engineering News Record 20 -city average construction cost index.
FEE PROGRAM ADMINISTRATIVE REQUIREMENTS
The Government Code requires the City to report every year and every fifth year certain
financial information regarding the fees. The City must make available within 180 days after the
last day of each fiscal year the following information from the prior fiscal year:
1. A brief description of the type of fee in the account or fund
2. The amount of the fee
3. The beginning and ending balance in the account or fund
4. The amount of the fee collected and the interest earned
5. An identification of each public improvement for which fees were expended and the
amount of expenditures
6. An identification of an approximate date by which time construction on the
improvement will commence if it is determined that sufficient funds exist to complete
the project
7. A description of each interf ind transfer or loan made from the account and when it
will be repaid
page 4
8. Identification of any refunds made once it is determined that sufficient monies have
been collected to fund all fee related projects
Source: City of Lodi Impact Mitigation Fee Program Update August 2012
Lodi Impact Fee Mitigation Program page 73
At previous Council Meetings I presented handouts that showed the estimated impacts of these reduced IMF
and how the Citizens of Lodi are subsidizing the income of builders building these developments through these
reduced fees.
It was presented with the information available at the time, based upon 1337 units to be built that the City
loss with the lower fee schedule is $8,650.00/unit times total unit count of 1337 equals $11,565,050.00 of initial
impact mitigation fees. Dividing the property tax per unit per year it would take 10.8 years for the City to break
even on the loss of these reduced fees. I realize there are some variables that affect the dollar amount in my
presentation but the argument presented here is still valid.
Having received information that The Vine and Eden House paid full IMF fees the balance of units to be built
is still about 1200 units with a loss in reduced fees at about $9,255,774.00 still takes over 10 years to break
even.
Lodi's regular IMF schedule is the lowest in the surrounding area. This fee is already not only a benefit to
the Developers Profit Margins it still allows Lodi housing to be competitive without the Citizens of Lodi
subsidizing the Developer through reduced Impact Mitigation Fees.
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 adjust for annual ENR increases since 2012 and consider raising them
higher. Especially since Lodi is a highly desired area known for its clean and safe environment the market
would support these higher fees.
Looking at the Impact Mitigation Fee Program Annual Reports for the years 2013 through 2016 I see
$3,422,074.67 loaned from the Water IMF fund to the Fire IMF fund for Fire Station number 4.
What I don't see is item 7 ( Source: City of Lodi Impact Mitigation Fee Program Update August 2012)
Page 5
"7. A description of each interfund transfer or loan made from the account and when it
will be repaid."
There is not any mention of how or when these monies will be paid back to the Water IMF Fund.
Also loans from Storm Drain IMF Fund to General Facilities IMF Fund 2013 through 2015 totaling
$110,000.00. No Item 7 mentioned here as well.
Finally 2014 through 2015 Wastewater IMF Fund paid out $300,000.00. Assume this was paid on COP'S
debt?
The question here is when will these monies be returned to their respective funds?
Question, will the Water IMF be increased due to the SGMA costs added to the Water Enterprise billing?
Question, will the Electrical IMF be increased due to the requirements of renewable energy sources, i.e. the
two Astoria Solar purchases?
Since all of the IMF funds are receiving reduced funds there is a short fall that has to be made up
somewhere. Capital improvements are added to each of the Cities enterprise budgets and the General
Fund. These annual budgets are reviewed each year and annual rate increases are established on these
budgets. The Citizens have to make up the short fall in the IMF by paying higher rates while the Developers
profits are subsidized by reduced IMF fees. Most of the Citizen rate payers do not realize the Capital
improvements made as a result of development growth and not covered by IMF hinds are then added into their
monthly utility bills and are solely paid by them. Not the Developer and not by the General Fund.
Quoted from Agenda Item G-01 Oct. 19, 2016
" 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."
I disagree with the Cities position on the benefit of this annual property tax income. The City will
not see a positive benefit for about 10 years of this tax offsetting the reduced income to the City as a
result of the Reduced IMF fee. Then and only then can you say the City is benefiting from these
developments. That is, if the infrastructure holds up and these neighborhoods do not require repair
which will cost additional tax dollars.
The point here is the Citizens of Lodi do not object to paying their share of the responsibility of
running the Cities business. But they should not have to pay to play by giving up resources or
revenue.
6
Thank You, Mike Lusk, Lodi.
Page 6
Or
;
�Fo�
Please immediately confirm receipt
of this
333-6702
CITY OF LODI
P. O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTION
SUBJECT: CONTINUED PUBLIC HEARING TO CONSIDER ADOPTING
RESOLUTION ELIMINATING REDUCED RESIDENTIAL IMPACT FEE
STRUCTURE FOR LOW- AND MEDIUM -DENSITY ZONING
DESIGNATIONS
PUBLISH DATE: SATURDAY, SEPTEMBER 10, 2016
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO: JENNIFER M. FERRAIOLO, CITY CLERK
LNS ACCT. #0510052 City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, SEPTEMBER 8, 2016
ORDERED BY: JENNIFER M. FERRAIOLO
CITY CLERK
-Ql,w
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 receipt of all pages at _
forms\advins.doc
on
(pages)
DECLARATION OF POSTING
NOTICE OF CONTINUED PUBLIC HEARING TO CONSIDER RESOLUTION
ELIMINATING REDUCED RESIDENTIAL IMPACT FEE STRUCTURE FOR LOW- AND
MEDIUM -DENSITY ZONING DESIGNATIONS
On Thursday, September 8,. 2016, in the City of Lodi, .San Joaquin County, Califomia, a
copy of a Notice of Continued Public Hearing to consider resolution eliminating reduced
Residential Impact Fee Structure for Low- and. Medium -Density Zoning designations
(attached hereto, marked 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 September 8, 2016, at Lodi, California.
4'. , �0,
PAMELA FARRIS
DEPUTY CITY CLERK
ORDERED BY:
JENNIFER M. FERRAIOLO
CITY CLERK
ELIZABETH BURGOS
ADMINISTRATIVE CLERK
N:\Administration\CLERK\Public Hearings\AFFADAVITS\DECPOSTI.DOC
CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF CONTINUED
PUBLIC HEARING
Date: October 19, 2016
Time: 7:00 p.m.
For information regarding this notice please contact:
Jennifer M. Ferraiolo
City Clerk
Telephone: (209) 333-6702
NOTICE OF CONTINUED PUBLIC HEARING
EEXH;BIT A 11
NOTICE IS HEREBY GIVEN that on Wednesday, October 19, 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 continued 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, 2"d 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:
nifer M. F raio o
qty Clerk
Dated: September 7, 2016
Ap ved as to form:
f
rice D agdich
City orney
91rM