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Reso 134-15 Public Facility Future Dev Fee
RESOLUTION NO. 134 - 15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * REVISING THE PUBLIC FACILITIES FEE FOR FUTURE DEVELOPMENTS WITHIN THE CITY OF DUBLIN RECITALS WHEREAS, the City Council of the City of Dublin has adopted Dublin Municipal Code Chapter 7.78 creating and establishing the authority for imposing and charging a Public Facilities Fee ("Fee") to pay for municipally owned public facilities within the jurisdictional limits of the City of Dublin; and WHEREAS, the City of Dublin has adopted a General Plan ("GP") and Specific Plans ("SPs"), including but not limited to, the Downtown Dublin Specific Plan, the Dublin Crossing Specific Plan, the Dublin Village Historic Area Specific Plan, the Eastern Dublin Specific Plan; and WHEREAS, the GP outlines future land uses within the City's sphere of influence including new residential, commercial, office, and industrial developments; and WHEREAS, the SPs provide more specific detailed goals, policies and action programs within the GP areas; and WHEREAS, the Parks and Recreation Master Plan Update was adopted by the City Council on May 19, 2015, by Resolution No. 72-15; and WHEREAS, the City conducted the appropriate level of environmental review for the 2015 update to the Parks and Recreation Master Plan, and on May 19, 2015, the City Council adopted an Addendum to the Mitigated Negative Declaration for the Parks and Recreation Master Plan (2015) by Resolution 71-15; and WHEREAS, the City Council has adopted several individual park master plans including the Emerald Glen Park Master Plan, Fallon Sports Park Master Plan, Dublin Historic Park Master Plan, and the Iron Horse Nature Park Master Plan ("Park Master Plans"); and WHEREAS, the City approved a Library Planning Task Force Report, dated April 1993, and a subsequent Library Planning Task Force Report dated September 1998 ("Library Reports"); and WHEREAS, the City has approved a Civic Center Programming Document dated November 1986, and subsequent Civic Center Programming Documents dated from 2007 and September 2010 ("Civic Center Reports"); and WHEREAS, the City has approved a Dublin Senior Center Feasibility Study ("Senior Center Study"), dated February 4, 2002; and Page 1 of 9 WHEREAS, the Park Master Plans, Library Reports, Civic Center Reports, Senior Center Study, and SP, describe the municipal public facilities necessary for implementation of the GP and SP, including completion of City office space, construction of a library, acquisition and construction of parks and community facilities; and WHEREAS, the Public Facilities Fee Program assumes that certain municipal public facilities will be constructed and that development within the City of Dublin pay for each development's fair share of the construction and acquisition costs of these improvements; and WHEREAS, the City Council adopted a "Mitigation Monitoring Program: Eastern Dublin Specific Plan/General Plan Amendment" by Resolution No. 53-93 which includes mitigation measures to assure that development within Eastern Dublin pays its proportionate share of municipal public facilities necessary to mitigate impacts caused by development within Eastern Dublin; and WHEREAS, the Park Master Plans, Library Reports, Civic Center Reports, Senior Center Study, GP, and SPs describe the impacts of contemplated future development on existing public facilities within the City of Dublin, and contain an analysis of the need for new municipal public facilities required by future development within the Dublin community; and WHEREAS, the City Council adopted Resolution No. 32-96 on March 26, 1996 establishing a "Public Facilities Fee" for development within the City of Dublin; and WHEREAS, Resolution No. 32-96 relies upon and incorporates a report prepared for the City of Dublin by Recht, Hausrath & Associates, in a document dated March 1996 and entitled "City of Dublin Public Facilities Fee Justification Study" (hereafter "Study"); and WHEREAS, in 1999, the City Council adopted Resolution No. 60-99 revising the "Public Facilities Fee" to reflect changes since the adoption of Resolution No. 32-96; and WHEREAS, Resolution No. 60-99 superseded Resolution No. 32-96 and incorporated and relied on a report prepared by Hausrath Economics Group, dated February 1999 and entitled "Public Facilities Fee 1998 Update" (hereafter "1998 Study Update"); and WHEREAS, in 2002, the City Council adopted Resolution No. 214-02 revising the "Public Facilities Fee" to reflect changes since the adoption of Resolution No. 60-99; and WHEREAS, Resolution No. 214-02 superseded Resolution No. 60-99 and incorporated and relied on a report prepared by MuniFinancial, dated October 14, 2002 and entitled "City of Dublin Public Facilities Fee Study Update" (hereafter "2002 Study Update"); and WHEREAS, Section 9 of Resolution No. 214-02 provides that the City will periodically review the Public Facilities Fee and make revisions as appropriate; and WHEREAS, the City has retained Willdan Financial Services to assist the City in reviewing and updating the Public Facilities Fee; and WHEREAS, the City retained Associated Right of Way which in August 2013 completed an appraisal of land values for parkland acquisition in the area; and Page 2 of 9 WHEREAS, Willdan Financial Services prepared a report dated July 7, 2015 and entitled "City of Dublin Development Impact Fee Update" (hereafter "2015 Study Update"), which is attached hereto as Exhibit A; and WHEREAS, Resolution Nos. 214-02, 60-99 and 32-96, in reliance on the 2002 Study Update, 1998 Study Update, and the Study, set forth the relationship between future development in the City of Dublin, the needed public facilities and improvements, and the estimated cost of those public facilities and improvements; and WHEREAS, the 2015 Study Update relies on previous studies and demonstrates the appropriateness of modifying the Public Facilities Fee in certain respects, primarily (1) to update cost information for parkland acquisition, (2) to update cost information for parkland development; (3) to update cost information for community buildings, such as the library building, civic center expansion, and cultural and recreational centers; and (4) and to update the cost information for aquatic facilities; and WHEREAS, the 2015 Study Update was available for public inspection and review for ten days prior to this public hearing; and FINDINGS WHEREAS, the City Council finds as follows: A. The purpose of the Public Facilities Fee (hereafter "Fee") is to finance municipal public facilities to reduce the impacts caused by future developments within the City of Dublin. Such facilities, which are specifically described in the study, include the following: completion of Civic Center administrative office space and police services wing; build-out and expansion of the Library; acquisition and construction of neighborhood and community parks and community buildings (including cultural centers, community and recreational centers, and aquatic facilities). The public facilities described in the study are hereinafter referred to as the "Facilities". B. The Fees collected pursuant to this resolution shall be used to finance the Facilities. C. After considering the Study, the 2015 Study Update, the testimony received at this noticed public hearing, the Agenda statements, the General Plan, the Park Master Plans, the Library Reports, the Civic Center Reports, the Senior Center Study, the SPs, and all correspondence received (hereafter "record") the Council approves and adopts the 2015 Study Update, and incorporates such herein, and further finds that the future development in the City of Dublin will generate the need for the Facilities and the Facilities are consistent with the City's General Plan, the Park Master Plans, the Library Reports, the Civic Center Report, and the various Specific Plans including the Eastern Dublin Specific Plan. D. The adoption of the Fee as it relates to development within the Eastern Dublin Specific Plan area is within the scope of its Environmental Impact Report (EIR) and Addenda. The Facilities were all identified in the EIR as necessary to accommodate development in Eastern Dublin. The impacts of such development, including the Facilities, were adequately analyzed at a Program level in the EIR. Since the certification of the EIR, there have been no substantial changes in the projections of future development as identified in the EIR, no substantial changes in the surrounding circumstances, and no other new information of substantial importance so as to require important revisions in the EIR's analysis of impacts, mitigation measures, and Page 3 of 9 alternatives. Subsequent project-specific environmental review under CEQA of the Facilities will be required before any such Facilities are approved. It is not feasible to provide project specific environmental review of the Facilities at this stage, as they will be implemented through build-out of the community and specific details as to their timing, construction, and often precise location are not all presently known. E. The adoption of the Fee as it relates to development within the City of Dublin is to obtain funds for capital projects necessary to maintain service within the existing service areas; that the City currently provides neighborhood and community park services, community and recreation facilities services, and civic center services; that the City and the Alameda County Library system currently provide library services; that the public facilities fee will be used to maintain current service levels; and that any existing deficiency costs are not included in the fee. As such, the Fee as it relates to development within the City is not a "project" within the meaning of CEQA (Public Resources Code § 21080(b)(8)(D)). F. In adopting the Fee, the Council is exercising its powers under Article XI, section 7 of the California Constitution. G. The record establishes: 1. That there is a reasonable relationship between the need for the Facilities and the impacts of the types of development for which the corresponding fee is charged in that new development in the City of Dublin—both residential and nonresidential—will generate persons who live, work and/or shop in Dublin and who generate or contribute to the need for the Facilities; and 2. That there is a reasonable relationship between the Fee's use (to pay for the construction of the Facilities) and the type of development for which the Fee is charged in that all development within the City of Dublin—both residential and nonresidential— generates or contributes to the need for the Facilities; and 3. That there is a reasonable relationship between the amount of the Fee and the cost of the Facilities or portion thereof attributable to development in the City of Dublin in that the Fee is calculated based on the number of residents or employees generated by specific types of land uses, the total amount it will cost to construct the Facilities, and the percentage by which development within the City of Dublin contributes to the need for the Facilities; and 4. That the cost estimates set forth in the 2015 Study Update, the September 1998 Library Planning Task Force Report, and the Park Master Plans, are reasonable cost estimates for constructing the Facilities, and the Fees expected to be generated by future development will not exceed the projected costs of constructing the Facilities; and 5. The method of allocation of the Fee to a particular development bears a fair and reasonable relationship to, and is roughly proportional to, each development's burden on, and benefit from, the Facilities to be funded by the Fee, in that the Fee is calculated based on the number of residents or employees each particular development will generate. Page 4 of 9 H. The 2015 Study Update is a detailed analysis of how public services will be affected by development in the City of Dublin, the existing deficiencies, if any, and the public facilities required to accommodate that development and any deficiencies. ADOPTION OF FEE NOW, THEREFORE, the City Council of the City of Dublin does RESOLVE as follows: 1. Definitions. A. "Commercial" shall mean any development constructed or to be constructed on land having a General Plan land use or zoning designation for facilities for the purchase and sale of commodities and services and the sales, servicing, installation, and repair of such commodities and services and other space uses incidental to these activities. Commercial land uses include but are not limited to: apparel and clothing stores; auto dealers and malls; auto accessories stores; banks and savings and loans; beauty salons; book stores; discount stores and centers; dry cleaners; drug stores; eating and drinking establishments; furniture stores and outlets; general merchandise stores; hardware stores; home furnishings and improvement centers; hotel/motels; laundromats; liquor stores; restaurants; service stations; shopping centers; supermarkets; and theaters. B. "Development" shall mean the construction, alteration or addition of any building or structure within the City of Dublin. C. "Facilities" shall include those municipal public facilities as are described in the Study, the 2002 Study Update, and the 2015 Study Update and as described in the Park Master Plans, the September 1998 Library Planning Task Force Report, the Civic Center Reports, the Senior Center Study, SP, EIR and Addenda. "Facilities" shall also include comparable alternative facilities should later changes in projections of development in the region necessitate construction of such alternative facilities; provided that the City Council later determines: (1) that there is a reasonable relationship between development within the City of Dublin and the need for the alternative facilities; (2) that the alternative facilities are comparable to the facilities in the Study Update; and (3) that the revenue from the Fee will be used only to pay new development's fair and proportionate share of the alternative facilities. D. "Industrial" shall mean any development constructed or to be constructed on land having a General Plan land use or zoning designation for the manufacture, production, assembly, and processing of consumer goods and other space uses incidental to these activities. Industrial land uses include but are not limited to: assembly; concrete and asphalt batching plants; contractor's storage yards; fabrication; lumber yard; manufacturing; outdoor stockyards and service yards; printing; processing; warehouse and distribution; and wholesale and heavy commercial uses. E. "Office" shall mean any development constructed or to be constructed on land having a General Plan land use or zoning designation for general business offices, medical and professional offices, administrative or headquarters offices for large wholesaling or manufacturing operations, and research and development and other space uses incidental to these activities. Office land uses include but are not limited to: administrative headquarters; business park; finance offices; insurance offices; legal offices; medical and health services offices; offices and office buildings; professional and administrative offices; professional associations; real estate offices; research and development and travel agencies. Page 5 of 9 2. Public Facilities Fee Imposed. A. A Public Facilities Fee ("Fee") shall be charged and paid for each residential unit within the City of Dublin when the Certificate of Occupancy for the unit is issued, provided that the Fee shall be, payable when the building permit is issued from and after the date on which the City Council approves a Capital Improvement Program for the Facilities. B. A Fee shall be charged and paid for non-residential buildings or structures within the City of Dublin when the building permit is issued for construction of such building or structure. C. A fee shall be charged and paid for non-residential development for any addition to an existing building or structure if the addition exceeds 500 square feet. D. Any use of land that is not included in the definition of "Commercial, "Industrial," or "Office" shall be allocated by the Community Development Director to one of the three categories, maintaining as much consistency as possible with the definitions of such terms. 3. Amount of Fee. The amount of the Fee shall be as set forth on Exhibit B attached hereto and incorporated herein. Each component of the Fee shall be considered to be a separate fee. 4. Exemptions From Fee. A. The Fee shall not be imposed on any of the following: 1. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a single family residential unit or another unit is added to an existing multi-family residential unit; 2. Any replacement or reconstruction of an existing residential structure that has been destroyed or demolished provided that the building permit for reconstruction is obtained within one year after the building was destroyed or demolished unless the replacement or reconstruction increases the square footage of the structure fifty percent or more. 3. Any replacement or reconstruction of an existing non-residential structure that has been destroyed or demolished provided that the building permit for new reconstruction is obtained within one year after the building was destroyed or demolished and there is no change in the land use designation of the property (as between Commercial, Office and Industrial). 4. Any non-residential building or structure constructed on property on which a building or structure was demolished for which the Fee had been paid within the prior ten year period, provided the exemption shall be in the amount of the previously-paid Fee only and the applicant shall pay any additional amount based on the then-current Fee. B. The Neighborhood Park Land and Improvement portions of the Fee shall not be imposed on any of the following: Page 6 of 9 1. The portion of Fee otherwise imposed on a project that is attributable to an affordable unit, as defined in Dublin Municipal Code section 8.68.020.A, where the project applicant provides evidence to the City Manager demonstrating that, prior to October 15, 2015, it obtained or submitted to obtain public-agency financing to build the affordable units. This exemption shall not be available after December 31, 2016. 5. Use of Fee Revenues. A. The revenues raised by payment of the Fee shall be placed in the Capital Project Fund. Separate and special accounts within the Capital Project Fund shall be used to account for such revenues, along with any interest earnings on each account. The revenues (and interest) shall be used for the following purposes: 1. To pay for design, engineering, right-of-way or land acquisition and construction of the Facilities and reasonable costs of outside consultant studies related thereto; 2. To reimburse the City for the Facilities constructed by the City with funds from other sources including funds from other public entities, unless the City funds were obtained from grants or gifts intended by the grantor to be used for the Facilities. 3. To reimburse developers who have designed and constructed Facilities which are oversized with supplemental size, length, or capacity; and 4. To pay for and/or reimburse costs of program development and ongoing administration of the Fee program. B. Fees in the Capital Project Fund accounts shall be expended only for the Facilities and only for the purpose for which the Fee was collected. 6. Standards. The standards upon which the needs for the Facilities are based are the standards of the City of Dublin, including the standards contained in the General Plan, the Park Master Plans, the Library Reports, the Civic Center Reports, the Senior Center Study, the GPA, SP, EIR, and Addenda. 7. Periodic Review. A. During each fiscal year, the City Manager shall prepare a report for the City Council, pursuant to Government Code section 66006, identifying the balance of Fees in each account. B. Pursuant to Government Code section 66002, the City Council shall also review, as part of any adopted Capital Improvement Program each year, the approximate location, size, time of availability and estimates of cost for all Facilities to be financed with the Fee. The estimated costs shall be adjusted in accordance with appropriate indices of inflation. The City Council shall make findings identifying the purpose to which the existing Fee balances are to be put and demonstrating a reasonable relationship between the Fee and the purpose for which it is charged. Page 7 of 9 8. Subsequent Analysis and Revision of the Fee. The Fee established herein is adopted and implemented by the City Council in reliance on the record identified above. The City will continue to conduct further study and analysis to determine whether the Fee should be revised. When additional information is available, the City Council shall review the Fee to determine that the amounts are reasonably related to the impacts of development within the City of Dublin. The City Council may revise the Fee to incorporate the findings and conclusions of further studies and any standards in the GP, SPs, Park Master Plans, Library Reports, Civic Center Reports, Senior Center Study and General Plan, as well as increases due to changes in construction costs and land values. The City will evaluate land values through an appraisal at least every three (3) years. 9. Automatic Adjustment in Fee. The purpose of this section is to provide for an automatic annual adjustment to the Fee in years when the City Council does not revise the Fee pursuant to Section 8 above. The City Manager shall adjust the Fee automatically, effective July 1, 2016 and each July 1 thereafter, as follows: A. The costs of construction of the Facilities (as shown on Table 3.3 for Civic Center expansion; Table 4.3 for library facilities; Table 5.3 for parks; Table 6.3 for community/recreation facilities; Table 7.3 for aquatic facilities in the 2015 Study Update shall be increased by the annual percentage increase in the Engineering News Record's Construction Cost Index (20-city average) for the month of April over the same Construction Cost Index for the month of April of the prior year. The City Manager may round the Fee adjustment to whole dollars. B. The Land Cost per acre for the Facilities as shown on Table 5.3 for Neighborhood and Community Parks in the 2015 Study Update shall be increased/decreased annually by the percentage increase/decrease between the land cost per acre in the most recent land appraisal (prepared for the City for purposes of adjusting the Fee) over the land cost per acre in the immediately preceding appraisal (prepared for the City for purposes of adjusting the Fee and using the same methodology), calculated as an annual increase/decrease. For example, in 2000, the cost per square foot of neighborhood parkland was $15.38/square foot, and in 2013, it was $50/square foot, which results in an annual compounded growth increase of 9%. This results in a yearly increase in land valuation of 9%, until the Fee is revised by the Council pursuant to Section 8 above. The City Manager may round the Fee adjustment to whole dollars. 10. Administrative Guidelines. The Council has, by resolution, adopted administrative guidelines to provide procedures for calculation, reimbursement, credit or deferred payment and other administrative aspects of the Fee. Such guidelines shall include procedures for construction of designated Facilities by developers. The amount of any reimbursement or credit shall be determined by the Public Works Director using the costs of construction and value of right-of-way used by the City in calculating and establishing the Fee. The amount of any reimbursement or credit, once established, shall not be increased for inflation nor shall interest accrue on such amount. No credit or reimbursement shall be given unless the improvements constructed are the Improvements and Facilities described herein. Reimbursement shall only be from revenues raised by payment of the Fee. Page 8 of 9 11. Effective Date. This resolution shall become effective on October 15, 2015. The Fee provided in Sections 2 and 3 of this resolution shall be effective October 15, 2015 and shall supersede the Fee established by Resolution No. 214-02. 12. Severability. Each component of the Fee and all portions of this resolution are severable. Should any individual component of the Fee or other provision of this resolution be adjudged to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective, and the Fee shall be fully effective except as to that component that has been judged to be invalid. PASSED, APPROVED AND ADOPTED this 21st day of July 2015, by the following vote: AYES: Councilmembers Biddle, Hart, Wehrenberg, and Mayor Pro Tem Gupta NOES: None ABSENT: Mayor Haubert ABSTAIN: None Mayor Pro Tem ATTEST: 64„.vio pry City Clerk Reso No. 134-15, Adopted 7-21-15, Item 6.1 Page 9 of 9 CITY OF DUBLIN PUBLIC FACILITIES FEE STUDY UPDATE WWI LLDAN Financial Services Oakland Office Corporate Office Other Regional Offices 1939 Harrison Street 27368 Via Industria Lancaster, CA Suite 430 Suite 110 Memphis, TN Oakland, CA 94612 Temecula, CA 92590 Orlando, FL Tel: (510) 832-0899 Tel: (800) 755-MUNI (6864) Phoenix, AZ Fax: (510) 832-0898 Fax: (909) 587-3510 Sacramento, CA Seattle, WA www.willdan.com City of Dublin Public Facilities Fee Update Parkland Unit Costs 25 Improved Parkland Equivalent 25 Existing Park Facility Standards 26 Facilities Needed to Accommodate New Development 26 Parks Cost per Capita 28 Use of Fee Revenue 28 Fee Schedule 28 6. COMMUNITY RECREATION CENTERS 30 Service Population 30 Facility Inventories & Standards 31 Cost per Capita Standard 31 Fee Schedule 32 Use of Fee Revenue 33 7. AQUATIC FACILITIES 34 Service Population 34 Facility Inventories & Standards 35 Cost per Capita Standard 35 Fee Schedule 36 Use of Fee Revenue 36 8. IMPLEMENTATION 38 Impact Fee Program Adoption Process 38 Inflation Adjustment 38 Reporting Requirements 38 Programming Revenues and Projects with the CIP 38 9. MITIGATION FEE ACT FINDINGS 39 Purpose of Fee 39 Use of Fee Revenues 39 Benefit Relationship 39 Burden Relationship 39 Proportionality 40 'WILLDAN Financial Services Executive This report summarizes an analysis of public facilities fees needed to support future development in The City of Dublin through build out. 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: • Civic Center Facilities • Park Facilities • Library Facilities • Community Recreation Centers • Aquatic 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. The City imposes 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. All development impact fee-funded capital projects should be programmed through the City's five- year Capital Improvement Plan (CIP). Using a CIP can help the City 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 Mitigation Fee Act. Facility Standards and Costs There are three approaches typically used to calculate facilities standards and allocate the costs of planned facilities to accommodate growth in compliance with the Mitigation Fee Act requirements. 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. This approach is often used when a long-range plan for new facilities is not available. Future facilities to serve growth will be identified through the City's annual capital improvement plan and budget process and/or completion of a new facility master plan. This approach is used to calculate the community recreation facilities and aquatic facilities fees in this report. The planned facilities approach allocates costs based on the ratio of planned facilities that serve new development to 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. For example, if the remaining facility needs to build out represent a facility standard that is less than the existing standard, then the entire cost of planned facilities can be allocated to new development. This approach is used to calculate the civic center facilities, library facilities and park facilities fees in this report. WI LLDAN 3 hlr nc a S.'ry ce. City of Dublin Public Facilities Fee Update The system plan approach is based on a master facilities 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 not used in this report. Use of Fee Revenues Impact fee revenue must be spent on new facilities or 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, the acquisition of vehicles or equipment, information technology, software licenses and equipment. Development Impact Fee Schedule Summary Table E.1 summarizes the development impact fees that meet the City's identified needs and comply with the requirements of the Mitigation Fee Act. Table E.1: Maximum Justified Impact Fee Summary Civic Community Center Library Recreation Aquatic Land Use Facilities Facilities Parks Centers Facilities Total Residential-per Dwelling Unit $ 892 $ 977 $18,646 $ 3,433 $ 496 $24,444 Nonresidential-per 1,000 Square Feet Commercial $ 237 $ 212 $ 2,832 $ 148 $ 21 $ 3,450 Office 319 285 3,806 199 28 4,637 Industrial 118 105 1,410 74 10 1,717 Sources:Tables 3.5,4.5,5.8,6.4 and 7.4. Other Funding Needed Impact fees may only fund the share of public facilities related to new development in Dublin. They may not be used to fund the share of facility needs generated by existing development or by development outside of the City. Based on the methodology utilized to calculate the fees in this analysis, no other funding is needed to fully fund the facilities in each fee category. Existing Impact Fee Fund Balances This analysis incorporates the existing impact fee fund balances, by fee category, into the fee calculations. For categories calculated using the planned facilities standard, the fund balance is subtracted from the total cost of planned facilities allocated to new development prior to calculating the cost per capita. For the library facilities category, negative fund balances represent facility costs to new development. Those costs are added to the cost of planned WI LLDAN Financai Services 4 City of Dublin Public Facilities Fee Update facilities and included in the fee analysis. See Chapter 4 for an in-depth discussion regarding the negative library fee fund balances. Table E.2 summarizes the existing impact fee fund balances. Table E.2: Impact Fee Fund Balances Fund Balance Category: 6/30/14 Neighborhod Parks - Land $ 7,671,690 Neighborhod Parks - Improvements 3,068,320 Community Parks - Land 5,126,816 Community Parks - Improvements 1,337,513 Community Nature Parks - Land - Community Nature Parks - Improvements - Aquatic Center (2,760,819) Community Buildings2 (15,555,039) Library3 (1,880,252) Civic Center 453,312 Total $ (2,538,459) Adjusted for cost of pool in aquatic complex. 2 Adjusted for cost of recreation and aquatic complex buildings. 3 Negative fund balance was spent of facilities to serve new development. Source: City Of Dublin,California,Comprehensive Annual Financial Report For The Year Ended June 30,2014 WWILLDAN F(nanciaf Services I 5 Introduction This report presents an analysis of the need for public facilities to accommodate new development in the City of Dublin. This chapter provides background for the study and explains the study approach under the following sections: • Public Facilities Financing in California; • Study Objectives; • City of Dublin Impact Fee Program; • Fee Program Maintenance; • Study Methodology; and ▪ Organization of the Report. Public Facilities Financing in California The changing fiscal landscape in California during the past 30 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 City imposes 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 presented in this report. Dublin is forecast to experience continued growth through build out. This growth will create an increase in demand for public services and the facilities required to deliver them. Given the revenue challenges described above, Dublin has decided to use a development impact fee program to ensure that new development funds the share of facility costs associated with growth. This report makes use of the most current available growth forecasts and facility plans to update the City's existing fee program to ensure that the fee program accurately represents the facility needs resulting from new development. WWI LLDAN 6 Fin.inc,ai Serv.ces City of Dublin Public Facilities Fee Update City of Dublin Public Facilities Fee Program Dublin currently charges a variety of impact fees to fund the construction and expansion of public facilities to serve new development. The Dublin Public Facilities Fee (PFF) has been in place since 1996. The PFF funds civic center, parks, libraries, and community and recreational facilities. A comprehensive update of the fee was last carried out in 1998 and adopted in 1999. In 2002, MuniFinancial (now Willdan Financial Services) updated the fee for changes in facility costs. Since that time, the fees have been updated for inflation on a regular basis. Fee programs must be regularly adjusted for inflation, as not doing so can result in impact fees that do not generate sufficient revenues to fully fund facilities to serve new development through the planning horizon. This report provides a comprehensive update of the fees based on the City's current facility plans, current facility cost estimates, and current population and employment projections for the City of Dublin. 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 for each facility included in the inventories (land, buildings, and equipment), such as the Engineering News-Record, is necessary to accurately adjust the impact fees. For a list of recommended indices, see Chapter 8. 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. In this case, it has been 13 years since the City last comprehensively updated its fee program. For further detail on fee program implementation, see Chapter 8. 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. , WI LLDAN Financial Services City of Dublin Public Facilities Fee Update 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. An example of a facility standard is park acres per 1,000 residents. Using such a standard, the analysis can estimate the amount of parkland needed to serve the increase in population. Facility standards are identified for each facility category included in this analysis. An in-depth discussion of facility standards is included below. 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 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 three common methods for determining new development's fair share of planned facilities costs: the system plan method, the planned facilities method, and the existing inventory method. Often the method selected depends on the degree to which the community has engaged in comprehensive facility master planning to identify facility needs. The formula used by each approach and the advantages and disadvantages of each method is summarized below: 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 = $/unit of demand Under this method new development funds the expansion of facilities at the same standard currently serving existing development. By definition, 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 capital improvement plan and budget process, possibly after completion of a new WILLDAN Financial Ser c,s 8 City of Dublin Public Facilities Fee Update facility master plan. This approach is used to calculate the community recreation facilities and aquatic facilities 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 = $/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 is expansion of an existing library building and book collection, which will be needed only if new development occurs, but which, if built, will in part benefit existing development, as well. Under this method new development funds the expansion of facilities at the standards used in the applicable planning documents. This approach is used to calculate the civic center facilities, library facilities and park facilities fees in this report. 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 method is not used in this study. Organization of the report 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: • Civic Center Facilities • Park Facilities • Library Facilities • Community Recreation Centers • Aquatic Facilities Chapter 8 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. WILLDAN — — 9 Financial Services City of Dublin Public Facilities Fee Update The five statutory findings required for adoption of the proposed public facilities fees in accordance with the Mitigation Fee Act are documented in Chapter 9. WWI LLDAN Financlaf Serv1ces 10 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 2015 base year and a planning horizon of build out. 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 2015 is used as an indicator of existing facility demand and to determine existing facility standards. • The estimate of total development at build out is used as an indicator of future demand to determine total facilities needed to accommodate growth and remedy existing facility deficiencies, if any. • Estimates of growth from 2015 through build out 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. The service populations for all facilities included in this study include a varying weighted amount of workers, by category, to reflect varying levels of demand for 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 that impact fees have been calculated for are defined below. Residential: All residential dwelling units including detached and attached one- unit dwelling and attached multi-family dwellings including duplexes and condominiums. ® Commercial: All commercial, retail, educational, and hotel/motel development. • Office: All general, professional, and medical office development. • Industrial: All manufacturing and warehouse development. Some developments may include more than one land use type, such as a mixed use development with both multi-family 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. Existing and Future Development Table 2.1 shows the estimated number of residents, dwelling units, workers, and building square feet in Dublin, both in 2015 and at build out. These estimates are used to calculate the fees for all fee categories. The current population estimate for the Dublin comes from the California Department of Finance (DOF). The population projection for build out is consistent with the City's General Plan. Current .......... /WI LLDAW II Financial SerNacos City of Dublin Public Facilities Fee Update estimates of dwelling units in Dublin also come from the DOE. Total dwelling units at build out is informed by data from the General Plan, based on a growth increment of 8,787. Base year workers were estimated based on data provided by the California Employment Development Department (EDD). The projected increase in employment is based on the increase in building square feet, multiplied by the employment density factors identified below in Table 2.2. Estimates of base year and build out nonresidential square footage were derived from the City's General Plan. Table 2.1: Population and Employment Estimates Growth (2015- 2015 Build out Build out) Residential Residents' 51,784 75,000 23,216 Dwelling Units' 19,551 28,338 8,787 Building Square Feet (000s)2 Commercial 3,800 10,165 6,365 Office 2,640 4,220 1,580 Industrial 1,730 3,140 1,410 Total 8,170 17,525 9,355 Employment 3 Commercial 9,045 23,875 14,830 Office 5,937 10,882 4,945 Industrial 3,498 5,134 1,636 Total 18,480 39,891 21,411 1 Base year population and dwelling units from CA Department of Finance,Table E-5. Excludes group quarters. Build out estimate consistent with General Ran. 2 Existing and projected building square feet based on data from the City's General Plan. 3 Base year employment from CA EDD. Excludes local government employees. Build out estimated by multiplying the increase in square footage, by land use category,by the corresponding employee density factors in Table 2.2 below. Sources:City of Dublin General Plan;California Department of Finance,Table E-5, 2015;(CA DOF)California Employment Development Department, 1st Quarter, 2014(CA EDD);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 or hotel room) 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 or impervious surface (for storm drain fees) of the development. /WILLDA1 Finztnciaf Services 12 City of Dublin Public Facilities Fee Update The average occupant density factors used in this report are shown in Table 2.2. The residential density factor of 2.7 residents per dwelling unit was identified in the Table 2.1 of the City's General Plan. The nonresidential occupancy factors are based on occupancy factors found in the Employment Density Study Summary Report, prepared for the Southern California Association of Governments by The Natelson Company. Though not specific to Dublin, the Natelson study covered employment density over a wide array of land use and development types, making it reasonable to apply these factors to other areas. The specific factors used in this report are for developing suburban areas, as defined by the Natelson study. Table 2.2: Occupancy Density Assumptions Residential Dwelling Unit 2.70 Persons per dwelling unit Nonresidential Commercial 2.33 Employees per 1,000 sq. ft. Office 3.13 Employees per 1,000 sq. ft. Industrial 1.16 Employees per 1,000 sq. ft. Sources:Table 2.1 of the City of Dublin General Ran;The Natelson Company, Inc., Employment Density Study Summary Report,Table 6,p. 16-23, prepared for the Southern California Association of Governments,October 31,2001;Willdan Financial WILLDAN 13 Financial Services 3., Civic Center Facilities The purpose of the civic center impact fee is to fund the civic center facilities needed to serve new development. The existing civic center currently houses City administration and police services. Service Population Civic center 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 3.1 shows the existing and future projected service population for civic center 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 worker compared to one resident, because nonresidential buildings are typically occupied less intensively 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 civic center facilities. Table 3.1: Civic Center Impact Fee Service Population A B AxB=C Weighting Service Persons Factor Population Residents Existing (2015) 51,784 1.00 51,800 New Development (2015-Buildout) 23,216 1.00 23,200 Total (Buildout) 75,000 75,000 Work ers Existing (2015) 18,480 0.31 5,700 New Development (2015-Buildout) 21,411 0.31 6,600 Total (Buildout) 39,891 12,300 Combined Existing (2015) 57,500 New Development (2015-Buildout) 29,800 Total (Buildout) 87,300 Note:Workers are w eighted at 0.31 of residents based on the ratio of work hours to non-w ork hours in a week(401128). Totals have been rounded to the nearest hundred. Sources:Table 2.1;Wlldan Financial Services. /WI LLDAN 14 Financial Services City of Dublin Public Facilities Fee Update Facility Inventories and Standards This section describes the City's civic center facility inventory and facility standards. Existing Inventory Table 3.2 shows the existing building and land inventory. The replacement cost for the building is based on a recent construction cost estimate to build the Emerald Glen Aquatic Center, excluding pool costs. The value of land is assumed to be $2,178,000 per acre based on the "medium density residential" valuation from an August 2013 appraisal by Associated Right of Way Services, prepared specifically for use in this impact fee update. Table 3.2: Existing Civic Center Facilities Inventory Inventory Unit Cost Value Civic Center Land' 4.84 acres $ 2,178,000 $ 10,542,000 Civic Center Building2 Police Services 20,054 sq. ft. $ 730 $ 14,639,420 City Administration 32,633 sq. ft. 730 23,822,090 Subtotal-Civic Center/Police Building 52,687 sq. ft. $ 38,461,510 Total Value-Civic Center $ 49,003,510 ' Land values identified in:Appraisal Consluting Assignment Report for City of Dublin,August 2013. 2 Building replacement cost is based on a recent construction cost estimate to build the Emerald Glen Aquatic Center,excluding pool costs. Sources: Appraisal Consluting Assignment Report for City of Dublin,August 2013;Wlldan Financial Services. Planned Facilities The City of Dublin has two expansions planned for the civic center. One project aims to expand the police wing of the civic center and the other will expand the administrative wing of the facility. The total cost of the facilities attributable to new development is $10.2 million. Table 3.3 presents the planned civic center facilities and cost estimates. Table 3.3: Planned Civic Center Facilities Total Cost Administrative and Police Wing Expansion $10,193,720 Total Cost- Planned Civic Center Facilities $10,193,720 Source: 2010 Building Study Prepared by RDC September 2010. LLDAN ! — 4 Financial Servicee 1.5 City of Dublin Public Facilities Fee Update Cost Allocation Table 3.4 the calculation of the planned facilities per capita standard. This value is calculated by dividing cost of net cost of planned facilities by the increase in service population. The value per capita is multiplied by the worker-weighting factor of 0.31 to determine the value per worker. Note that the net value of planned facilities is equal to the revenue generated by the fee. Table 3.4: Civic Center Facilities Planned Facilities Standard Value of Planned Facilities $10.193,720 (Less Existing Fund Balance) (453,312) Net Value of Planned Facilities $ 9,740,408 Service Population Growth (2015 to Buildout) 29,800 Cost per Capita $ 327 Facility Standard per Resident $ 327 Facility Standard per Worker' 101 1 Based on a weighing factor of 0.31. Sources: Tables 3.1 and 3.3;Willdan Financial Services. Use of Fee Revenue The City can use civic center facilities fee revenues for the construction or purchase of buildings, land, and equipment that are part of the system of civic center facilities serving new development. Fee Schedule Table 3.5 shows the proposed civic center 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 workers per 1,000 square feet of nonresidential building space). The total fee includes a one percent (1%) administrative charge to fund costs that include: a standard overhead charge applied to all City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. In Willdan's experience with impact fee programs, one percent of the base fee adequately covers the cost of fee program administration. The administrative charge is not an impact fee; rather, it is a user fee. It 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. WWI LLDAN 1G Financial SE?rv,ces City of Dublin Public Facilities Fee Update Table 3.5: Civic Center Facilities Fee - Planned Facilities Standard A B C=AxB D=Cx0.01 E=C+D E/1,000 Cost Per Base Admin Fee per Land Use Capita Density Feel Charge1'2 Total Feel Sq. Ft. Residential Dwelling Unit $ 327 2.70 $ 883 $ 9 $ 892 Nonresidential Commercial $ 101 2.33 $ 235 $ 2 $ 237 $ 0.24 Office 101 3.13 316 3 319 0.32 Industrial 101 1.16 117 1 118 0.12 Fee per dwelling unit(residential) or per 1,000 square feet(nonresidential). 2 Administrative charge of 1.0 percent for(1)legal,accounting,and other administrative support and(2)impact fee program adrrinistrative costs including revenue collection,revenue and cost accounting,mandated public reporting,and fee justification analyses. Sources:Tables 2.2 and 3.4;Willdan Financial Services WWI LLDAN Financial Services 17 40 Library w t es The purpose of the fee is to ensure that new development funds its fair share of library facilities. A fee schedule is presented based on the planned facilities standard of library facilities in the City of Dublin to ensure that new development provides adequate funding to meet its needs. Service Population Library 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 library facilities. The 0.25-weighting factor for workers is based on analysis contained in the Public Facilities Fee Study update completed in 1998 by Hausrath Economics Group for the City of Dublin. This analysis uses the same factor to maintain consistency. Table 4.1: Library Service Population A 8 AxB=C Weighting Service Persons Factor Population Residents Existing (2015) 51,784 1.00 51,800 New Development (2015-Buildout) 23,216 1.00 23,200 Total (Buildout) 75,000 75,000 Workers Existing (2015) 18,480 0.25 4,600 New Development (2015-Buildout) 21,411 0.25 5,400 Total (Buildout) 39,891 10,000 Combined Existing (2015) 56,400 New Development (2015-Buildout) 28,600 Total (Buildout) 85,000 Demand per worker is weighted at 0.25 of demand per resident based on the Public Facilities Fee Study update completed in 1998 by Hausrath Economics Group. Totals have been rounded to the nearest hundred. Sources:Table 2.1.Willdan Financial Services. Facility Inventories, Plans & Standards Table 4.2 shows the existing inventory of library facilities in the City of Dublin. The replacement cost for the building is based on a recent construction cost estimate to build the Emerald Glen Aquatic Center, excluding pool costs. The value of land is $2,178,000 per acre based on the WWILLDAN Financial Services City of Dublin Public Facilities Fee Update "medium density residential" valuation from an August 2013 appraisal by Associated Right of Way Services, prepared specifically for use in this impact fee update. Table 4.2: Existing Library Facilities Inventory Amount Unit Cost Total Cost Existing Land 3.75 acres $ 2,178,000 $ 8,167,500 Building' 38,215 sq. ft. 730 27,896,950 Collections 145,700 items 36 5,245,000 Total Value of Existing Facilities $ 41,309,450 'City has constructed 38,215 square foot library building to date,but only furnished 30,000 square feet of the building.Building replacement cost is based on a recent construction cost estimate to build the Emerald Glen Aquatic Center,excluding pool costs. Source:City of Dublin;Dublin Building Detail Report,2012; Appraisal Consluting Assignment Report for City of Dublin,August 2013;Bow ker Annual Library and Trade Book Almanac;Wlldan Financial Services. Planned Facilities Table 4.3 displays the planned library facilities. The City plans to expand the currently library space in three phases. The first two expansion projects improve the building interior so that the existing building shell can be used. The final phase adds 9,000 square feet of building space to the existing building. The total cost of planned library facilities is approximately$8.4 million. Table 4.3: Planned Library Facilities Total Cost Building Improvements Phase I - Small Space $ 222,456 Phase II - Large Space 1,564,999 Final Phase-9,000 sq. ft. expansion 6,570,000 Total Cost - Planned Library Facilities $8,357,455 Source: City of Dublin,CA,Adopted Five-Year Capital Improvement Program 2014-2019. Cost Allocation Table 4.4 displays the calculation of the planned facilities per capita standard. This value is calculated by dividing the net cost of the planned facilities by the increase in service population. The value per capita is multiplied by the worker-weighting factor of 0.25 to determine the value per worker. WWILLDAN 19 Financial Services City of Dublin Public Facilities Fee Update In this case, the negative impact fee fund balance is also included as a planned facilities cost. The fund balance was loaned from the General Fund to the library impact fee fund and was spent on facilities to serve new development, ahead of that development. In total, $10.2 million of planned facilities will be funded through the impact fee. Note that the value of the planned facilities is equal to the revenue generated by the fee. Table 4.4: Library Facilities Planned Facilities Standard Value of Planned Facilities $ 8,357,455 (Less Existing Fund Balance)1 (1,880,252) Net Value of Planned Facilities $10,237,707 Service Population Growth (2015 to Buildout) 28,600 Cost per Capita $ 358 Facility Standard per Resident $ 358 Facility Standard per Worker2 90 1 Library fund is currently at a deficit. Fee revenue was used to construct facilities in anticipation of demand from new development. Costs incurred were needed as a result of future demand and are legitimate to include in this fee calculation. 2 Based on a weighing factor of 0.25. Sources: Tables 4.1,and 4.3;Willdan Financial Services. Fee Schedule Table 4.5 shows the proposed library 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 workers per 1,000 square feet of nonresidential building space). The total fee includes a one percent (1%) 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, mandated public reporting, and fee justification analyses. In Willdan's experience with impact fee programs, one percent of the base fee is a reasonable approximation of the cost of fee program administration. The administrative charge is not an impact fee; rather, it is a user fee. It 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. WWI 20 Financial Services i City of Dublin Public Facilities Fee Update Table 4.5: Library Facilities Fee -Planned Facilities Standard A B C=AxB D=Cx0.01 E=C+D E/1,000 Cost Per Base Admin Fee per Land Use Capita Density Feel Charge''2 Total Feel Sq. Ft. Residential Dwelling Unit $ 358 2.70 $ 967 $ 10 $ 977 Nonresidential Commercial $ 90 2.33 $ 210 $ 2 $ 212 $ 0.21 Office 90 3.13 282 3 285 0.29 Industrial 90 1.16 104 1 105 0.11 Fee per dwelling unit(residential) or per 1,000 square feet(nonresidential). 2Administrative charge of 1.0 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. Sources:Tables 2.2 and 4.4;Willdan Financial Services. Vie(WILLDAN I Financial Services ( 7/ 5. Park Facilities The purpose of this fee is to generate revenue to fund the park facilities needed to serve new development. The impact fee is based on maintaining the City's existing parkland standards. Service Population Facility standards for parks are typically expressed as a ratio of park acres per 1,000 residents. As residents are considered to be the primary users of parks in Dublin, demand for parks and associated facilities is based on the City's residential population, rather than a combined resident- worker service population. However, when allocating costs for community parks, a share of demand is allocated to workers. The 0.23-weighting factor for worker demand for community parks is based on analysis contained in the Public Facilities Fee Study update completed in 1998 by Hausrath Economics Group for the City of Dublin. This analysis uses the same factor to maintain consistency. Table 5.1 provides estimates of the City's current and projected park service population. Table 5.1: Parks Service Population A B AxB=C Weighting Service Persons Factor Population Residents Existing (2015) 51,784 1.00 51,800 New Development (2015-Buildout) 23,216 1.00 23,200 Total (Buildout) 75,000 75,000 Workers Existing (2015) 18,480 0.23 4,300 New Development (2015-Buildout) 21,411 0.23 4,900 Total (Buildout) 39,891 9,200 Combined Existing (2015) 56,100 New Development (2015-Buildout) 28,100 Total (Buildout) 84,200 ' Worker demand is weighted at 0.23 of resident demand based on the City of Dublin Public Facilities Fee Study completed 1998 by Hausrath Economics Group. Totals have been rounded to the nearest hundred. Source:Table 2.1; Public Facilities Fee Study. 1998 Update. Hausrath Economics Group;City of Dublin;Wlldan Financial Services. WWILLDAN » Financial Services City of Dublin Public Facilities Fee Update Facility Inventories and Standards This section describes the City's park facility inventory, facility standards, and park facility costs. Existing Inventory The City of Dublin maintains several park and recreation facilities throughout the city. Table 5.2 summarizes the City's existing parkland inventory. All facilities are located within the City limits. WILLDAN Financial Services ( 3 City of Dublin Public Facilities Fee Update Table 5.2: Existing Parkland Inventory Acres in Primary Acresin Ax=s\n Planning Eastern Schaefer Name Area Dublin Ranch Total Improved Parkland (acres) Community& Parks Dublin Chic Center/Library Grounds 11.42 ' 11.42 - Dublin Historic Park and Museums 7.78 ' 7.78 - Dublin Senior Center 2.00 ' 2.00 - Dublin Sports Grounds 22.77 - - Dublin Swim Center 3.60 - Emerald Glen Park - 42.25 Emerald Glen Park (unhnpm\eu) 6.89 Fallon Sports Park - 2720 - Fallon Sports Park �ceUecuom�to:unimpm�u) 32.86 32.86 Shannon Park __-__9.67 - ��-- �� 9.67 Subtotal 57.24 10920 166.44 - Community Parks Nature Based Iron Horse Nature Park (purchased: unimproved) 12.13 - - 12.13 Subtotal 12.13 - 12.13 Neighborhood Parks Alamo Creek Park 526 ' 5.26 Bray 4 78 - 4.78 / Commnn� - Devany Square - 1.91 - 1.91 Dolan Park 4.85 - 4.85 Dougherty Hills Dog Park 1.43 1.43 Jordan Ranch NP (deeded/credits:unimproved) 4.99 4.98 Jordan Ranch NS (deeded/uredhs:unimprov d) - 2.00 - 2.00 Kolb Park 4.86 - - 4.86 Mape Memorial Park 2.68 2.68 Passatempo Park 5.01 5.01 Piazza Sorrento 2.00 - 200 Positano Hills Park 4.60 4.60 Sean Diamunm (decuediured|ts:un|mproveU) 5.03 5.03 Schafer Ranch Park ' 10.55 10.55 - Stagecoach 0.82 0.82 - - Ted Fairfield O�g7 _ �o7 Subtotal 24.91 32z8 10.55 67.74 School Parks Dublin Elementary School 8.80 - 8.80 Dublin High School 5.40 ' 5.40 Frederiksen Elementary School 7.80 7,80 - - Murray Elementary School 8.50 8.60 - - Nielsen Elementary School 5.4U ' 5.40 Wells Middle School 7.60 - _ 7.60 Subtotal 43.68 ' 43.60 Total Improved Park Acreage 125.75 89.71 10.55 226.01 Total Unimproved Park Acreage 12.13 5177 ' 63.90 Source Cy of DiSri WWILLDAN Financial Serace5 '4 City of Dublin Public Facilities Fee Update Parkland Unit Costs Table 5.3 shows the estimated cost per acre for developing parkland, including land acquisition, standard park improvements, including construction and soft costs. The facility development cost per acre, by park type, is added to the standard land acquisition costs of $2,178,000 used throughout this report, to determine the total cost to develop an acre of neighborhood, community, or nature-based community parkland within the City. Nature-based community parkland is assumed to cost$10 per square foot. Table 5.3: Park Facilities Unit Costs Community Neighborhood Community Parks- Item Parks Parks Nature Based Improvement Cost per Acre $ 495,948 $ 720,000 $ 555,246 Land Acquisition per Acre2 2,178,000 2,178,000 435,600 Total - Land and Improvements Cost per Acre $ 2,673,948 $ 2,898,000 $ 990,846 1 Improvement costs estimated based on recent park construction cost estimates for community parks,open space parks,and actual data from Fallon Sports Park and parks within the surrounding communities. 2 Assumes$2,178,000 per acre based on medium density residential valuation from August 2013 appraisal by Associated Right of Way Services,prepared specifically for use in this impact fee update. $10 per square foot assumed for nature based community parkland based on the same study. Sources: City of Dublin:Willdan Financial Services. Improved Parkland Equivalent Before calculating the existing parkland standard, unimproved parkland owned by the City must be converted to an equivalent amount of improved parkland. Table 5.4 details this conversion. The conversion is based on the ratio of the cost of an improved acre of land (including land and improvements) relative to an acre of unimproved parkland (only land), by park type. WWILLDAN Financial Services -15 City of Dublin Public Facilities Fee Update Table 5.4: Undeveloped Parkland Equivalent Community Community Neighborhood Parks- Parks- Nature Type Parks Programmed Based Total Parkland Improved $ 2,673,948 $ 2,898,000 $ 990,846 Undeveloped Land 2,178,000 2,178,000 435,600 Undeveloped Land Costs 81.45% 75.16% 43.96% Percentage of Parkland costs Undeveloped Acres 12.02 39.75 12.13 c 63.90 Equivalent Improved Acres 9.79 29.88 5.33 ' 45.00 Sources: Tables 5.2 and 5.3;Willdan Financial Services. Existing Park Facility Standards Table 5.5 shows the existing parkland standard based on the parkland acreage shown in Table 5.2, the improved equivalent acres calculated in Table 5.4 and the existing residential population shown in Table 5.1. The City has an existing standard of 5.23 acres of parkland per 1,000 residents. The City's current policy standard shown in the City's Parks and Recreation Master Plan is 5.0 acres per 1,000 residents. The standard is segmented between park types. Table 5.5: Existing Parkland Standards Community Parks- Neighborhood Community Nature Parks Parks Based Total Existing Developed Acres 99.32 126.69 - 226.01 Equivalent Unimproved 9.79 29.88 5.33 45.00 Total 109.11 156.57 5.33 Existing Population 51,800 51,800 51,800 51,800 Existing Standard 2.11 3.02 0.10 5.23 1 Service population for neighborhood parks is based on residents. Community parks service population based on residents plus a weighted amount of employees. Sources: Tables 5.1:5.2;Willdan Financial Services. Facilities Needed to Accommodate New Development Table 5.6 calculates the value of the park facilities needed to accommodate new development at the City's policy standards, segmented by park type. Because the City has an existing standard WWILLDAN City of Dublin Public Facilities Fee Update above the policy standard, it can charge fees to new development at a lower standard and still meet the policy standard by build out. Reductions in parkland needs are also made for developer dedication credits and the existing fund balances. The total amount of parkland acreage needed at build out is determined using the parkland standards and the total projected residential population. Existing improved acres, by type, are then subtracted from the total acreage needs to determine the remaining parkland acreage needed to serve new development. For improvement needs, expected developer parkland dedications are subtracted from the acreage needed to serve new development to determine the net parkland needs. For land needs, expected developer parkland dedications and the existing amount of unimproved acreage are subtracted to determine the net amount of land needed to serve new development. The net improvement needs, and net land needs are then multiplied by the cost of improvements and land to determine the total cost of parkland facilities to serve new development. Existing fund balances, by category, are subtracted from the costs to determine the parkland and improvement costs remaining to achieve the policy standards by the planning horizon. In total, $184.3 million in parkland and improvements are needed to serve new development through the planning horizon. Table 5.6: Park Facilities to Accommodate New Development Community Neighborhood Community Parks-Nature Calculation Parks Parks Based Total Policy Standard A 1.70 3.00 0.30 5.00 Population at Buildout B 75,000 75,000 75,000 75,000 Acres Needed at Buildout C=A x(8/1000) 127.50 225.00 22.50 375.00 Existing Improved Acreage D 99.32 126.69 - 226.01 Improvements Improvements to Buildout E=C-D 28.18 98.31 22.50 148.99 (Less CFD Dublin Crossings) F - 21.30 - 21.30 (Less Neighborhood Park Dedication Credits) G 0.48 - - 0.48 Net Improvement Needs H=E-F-G 27.70 77.01 22.50 127.21 Land Land-Acres to Buildout E=C-D 28.18 98.31 22.50 148.99 (Less Existing Unimproved Acres) i 12.02 39.75 12.13 63.90 (Less Neighborhood Park Dedication Credits) J 0.48 - - 0.48 (Less CFD Dublin Crossings) K - 21.30 - 21.30 Net Land Needs L=E-I-J-K 15.68 37.26 10.37 63.31 Improvements Per Acre M $ 495,948 $ 720,000 $ 555,246 Land Per Acre N 2.178,000 2.178,000 435,600 Total 0=M+N $ 2,673,948 $ 2.898,000 $ 990,846 Improvements to Serve New Development P=I-Ix M $ 13,737,760 $ 55,449,360 $ 12,493,035 $ 81,680,155 (Less Existing Fund Balances) Q (3,068.320) (1,337,5131 - (4,405,8331 Subtotal R=P-Q $ 10,669,440 $ 54,111,847 $ 12,493,035 $ 77.274,322 Land to Serve New Development S=Lx N $ 34,151,040 $ 81,152,280 $ 4,517,608 $ 119,820,928 (Less Existing Fund Balances) T (7,671,6901 (5,126,816) - (12,798,506) Subtotal U=S-T $ 26,479,350 $ 76,025,464 $ 4,517,608 $ 107,022,422 Park Facilities To Serve New Development v=R+U $ 37,148,790 $ 130,137,311 $ 17,010,643 $ 184,296,743 Sources. Tables 5.1,5.2;Wlidan Financial Services. +'WILLDAN I Financial Services 1 7? City of Dublin Public Facilities Fee Update Parks Cost per Capita Table 5.7 calculates the cost per capita necessary to achieve the parkland policy standards by the planning horizon. The net cost of land and improvements identified in Table 5.6 are divided by the increase in service population to determine the cost per capita. The service population for neighborhood parks only includes residents. The service population for community parks and nature-based community parks includes residents and a weighted amount of workers. The cost per capita is shown separately for land and improvements and for each type of park facility. Table 5.7: Cost per Capita Parkland Standards Community Neighborhood Community Parks-Nature Calculation Parks Parks Based Total New Development Net Facility Needs Improvements A $ 10,669,440 $ 54,111,847 $ 12,493,035 $ 77,274,322 Land B 26,479,350 76,025,464 4,517,608 107,022,422 Total C=A+8 $ 37,148,790 $ 130,137,311 $ 17,010,643 $ 184,296,743 Growth in Service Population 13 23,200 28,100 28,100 Cost per Capita Improvements E=A/D $ 460 $ 1,926 $ 445 $ 2,830 Land F=B/D 1,141 2,706 161 4,008 Total Cost per Resident G=E+F $ 1,601 $ 4,631 $ 605 $ 6,838 Cost per Worker H=G x 0.23 - 1,065 139 1,204 ' Service population for neighborhood parks is based on residents. Community parks service population based on residents plus a weighted Sources: Tables 5.1,5.6;Willdan Financial Services. Use of Fee Revenue The City plans to use park facilities fee revenue to purchase parkland or construct improvements to add to the system of park and recreation facilities that serves new development. The City may only use impact fee revenue to provide facilities and intensify usage of existing facilities needed to serve new development. Fee Schedule Table 5.8 shows the proposed park facilities fee schedule. The proposed fees are based on the costs per capita shown in Table 5.7. The cost per capita is converted to a fee per unit of new development based on the average number of residents per dwelling unit, as shown in Table 2.2. The total fee includes a one percent (1%) administrative charge to fund costs that include: a standard overhead charge applied to all City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. In Willdan's experience with impact fee programs, one percent of the base fee adequately covers the cost of fee program administration. The administrative charge is not an impact fee; rather, it is a user fee. It 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. WILLDAN 2g Financial Services City of Dublin Public Facilities Fee Update Table 5.8: Park Facilities Impact Fee A B C=AxB D E=C+D Cost Per Resident/ Admin Land Use Worker Density Base Fee Charge Total Fee Residential Neighborhood Parkland $ 1,141 2.70 $ 3,082 $ 31 $ 3,113 Community Parkland 2,706 2.70 7,305 73 7,378 Community Parkland-Nature Based 161 2.70 434 4 438 Neighborhood Park Improvements 460 2.70 1,242 12 1,254 Community Park Improvements 1,926 2.70 5,199 52 5,251 Nature Based Community Park Improvements 445 2.70 1,200 12 1,212 Total $ 6,838 $ 18,462 $ 184 $ 18,646 Nonresidential Commercial Neighborhood Parkland $ - 2.33 $ - $ - $ - Community Parkland 622 2,33 1,449 14 1,463 Community Parkland-Nature Based 37 2.33 86 1 87 Neighborhood Park Improvements - 2.33 - - - Community Park Improvements 443 2.33 1,032 10 1,042 Nature Based Community Park Improvements 102 2.33 238 2 240 Total $ 1,204 $ 2,805 $ 27 $ 2,832 Office Neighborhood Parkland $ - 3.13 $ - $ - $ - Community Parkland 622 3.13 1,947 19 1,966 Community Parkland-Nature Based 37 3.13 116 1 117 Neighborhood Park Improvements - 3.13 - - - Community Park Improvements 443 3.13 1,387 14 1,401 Nature Based Community Park Improvements 102 3.13 319 3 322 Total $ 1,204 $ 3,769 $ 37 $ 3,806 Industrial Neighborhood Parkland $ - 1.16 $ - $ - $ - Community Parkland 622 1.16 722 7 729 Community Parkland-Nature Based 37 1.16 43 - 43 Neighborhood Park Improvements - 1.16 - - - Community Park Improvements 443 1.16 514 5 519 Nature Based Community Park Improvements 102 1.16 118 1 119 Total $ 1,204 $ 1,397 $ 13 $ 1,410 'Fee per dwelling unit(residential) or per 1.000 square feet(nonresidential). 2Administrative charge of 1.0 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. Sources:Tables 2.2 and 5.7;Willdan Financial Services. WILLDAN Financial Services 29 6. Community Recreation Centers The purpose of the community recreation centers impact fee is to fund the community recreation centers needed to serve new development. A proposed fee is presented based on the existing standard of community recreation centers per capita. Service Population Community recreation center 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 6.1 shows the existing and future projected service population for community recreation centers. 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 worker compared to one resident, because nonresidential buildings are typically occupied less intensively than dwelling units. The 0.05-weighting factor for workers is based on analysis contained in the Public Facilities Fee Study update completed in 1998 by Hausrath Economics Group for the City of Dublin. This analysis uses the same factor to maintain consistency. Table 6.1: Community Recreation Centers Service Population A g AxB=c Weighting Service Persons Factor Population Residents Existing (2015) 51,784 1,00 51,800 New Development (2015-Buildout) 23,216 1.00 23,200 Total (Buildout) 75,000 75,000 Workers Existing (2015) 18,480 0,05 900 New Development (2015-Buildout) 21,411 0.05 1,100 Total (Buildout) 39,891 2,000 Combined Existing (2015) 52,700 New Development (2015-Buildout) 24,300 Total (Buildout) 77,000 ' Worker demand is weighted at 0.05 of resident demand based on the City of Dublin Public Facilities Fee Study completed 1998 by Hausrath Econorrics Group. Source:Table 2.1:Public Facilities Fee Study, 1998 Update, Hausrath Economics Group;City of Dublin;Wlldan Financial Services. WWILLDAN 30 Services City of Dublin Public Facilities Fee Update Facility Inventories & Standards Table 6.2 shows the inventory of existing community recreation centers. Note that a share of the Stager Community Gymnasium is allocated to City use based on the City's proportion contribution to the construction of the facility. Table 6.2: Existing Community and Recreational Facilities City of Square Feet Cost per Square Dublin Allocated to Square Feet Share City Use Foot Total Value Existing Facilities Stager Community Gymnasium 6,002 69% 4,141 $ 730 $ 3,023,200 Senior Center 15,500 100% 15,500 730 11,315,000 Shannon Community Center 20,088 100% 20,088 730 14,664,200 Swim Center Building 9,800 100% 9,800 730 7.154,000 Rec/Aquatic Complex -Phase I 30,480 100% 30;480 730 22,250,400 Heritage Center Heritage Center and Bell Tower 2,482 100% 2,482 $ 730 $ 1,811,900 Old St. Raymond's Church/Visitor Centel 1,550 100% 1,550 730 1,131,500 Main House 2,304 100% 2,304 730 1,681,900 Old House Restroom 1,650 100% 1.650 730 1.204,500 Sunday School Barn 2,900 100% 2,900 730 2,117,000 Total Existing Facilities 92,756 90.895 $66,353,600 Albcation of Stager Corm-unity Gyrmasium square footage and facility value to Coy of Dublin based on the City's contribution of$1 million to funding the construction of the facility. $1 million represents 69%of the total facility costs,based on information provided by the City. 2 Cost to construct new recreation centers based on recent construction cost estimate to build the Emerald Glen Aquatic Center, excluding pool costs. Sources.Dublin Building Detail Report,2012;Willdan Financial Services. Cost per Capita Standard Table 6.3 calculates the existing cost per capita facility standard by dividing the value of the existing facilities inventory by the existing service population. The resulting cost per capita is the basis of the impact fee. Funding facilities at this level will ensure that as development occurs, new development will contribute to facilities at the same standard that existing development has contributed thus far. By definition, using the existing standard methodology results in no existing deficiencies. The cost per capita is then multiplied by the worker-weighting factor identified in Table 6.1 to determine the cost per worker. 'WILLDAN 31 Financial Services City of Dublin Public Facilities Fee Update Table 6.3: Community Recreation Centers Existing Standard Value of Existing Facilities $ 66,353,600 Existing Service Population 52,700 Cost per Capita $ 1,259 Facility Standard per Resident $ 1,259 Facility Standard per Worker' 63 ' Based on a weighing factor of 0.05. Sources: Tables 6.1 and 6.2;Willdan Financial Services. Fee Schedule Table 6.4 shows the proposed community recreation centers fee schedule. The existing cost per capita from Table 6.3 is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or workers per 1,000 square feet of nonresidential building space). The total fee includes a one percent (1%) 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, mandated public reporting, and fee justification analyses. In Willdan's experience with impact fee programs, one percent of the base fee adequately covers the cost of fee program administration. The administrative charge is not an impact fee; rather, it is a user fee. It 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: Community Recreation Centers Facilities Fee - Existing Standard A B C=AxB D=Cx0.01 E=C+D E/1.000 Cost Per Base Admin Fee per Land Use Capita Density Fee' Charge''' Total Fee' Sq. Ft. Residential Dwelling Unit $ 1,259 2.70 $ 3,399 $ 34 $ 3,433 Nonresidential Commercial $ 63 2.33 $ 147 $ 1 $ 148 $ 0.15 Office 63 3.13 197 2 199 0.20 Industrial 63 1.16 73 1 74 0.07 'Fee per dwelling unit(residential) or per 1.000 square feet(nonresidential). 2 Administrative charge of 1.0 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. Sources:Tables 2.2 and 6,6:Willdan Financial Services WWILLDAN 3? Financial Services City of Dublin Public Facilities Fee Update Use of Fee Revenue The City can use community recreation centers impact fee revenue for the construction or purchase of buildings, land and equipment that are part of the system of community recreation facilities serving new development. Table 6.5 shows the projected fee revenue that would be generated by the community recreation centers impact fee. Table 6.5: Revenue Projection -Community Recreation Facilities Cost per Capita $ 1,259 Growth in Service Population (2015- Buildout) 24,300 Projected Fee Revenue $ 30,593,700 Sources:Tables 6.1 and 6.4. AIVWiLLDAN I 33 Financial Services 7. Aquatic Fad t es The purpose of the aquatic facilities impact fee is to fund the aquatic facilities needed to serve new development. A proposed fee is presented based on the existing standard of aquatic facilities per capita. Service Population Community recreation center 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 7.1 shows the existing and future projected service population for aquatic 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 worker compared to one resident, because nonresidential buildings are typically occupied less intensively than dwelling units. The 0.05-weighting factor for workers is based on analysis contained in the Public Facilities Fee Study update completed in 1998 by Hausrath Economics Group for the City of Dublin. This analysis uses the same factor to maintain consistency. Table 7.1: Aquatic Facilities Service Population A g AxB=C Weighting Service Persons Factor Population Residents Existing (2015) 51,784 1.00 51,800 New Development (2015-Buildout) 23,216 1.00 23,200 Total (Buildout) 75,000 75,000 Workers Existing (2015) 18,480 0.05 900 New Development (2015-Buildout) 21,411 0.05 1,100 Total (Buildout) 39,891 2,000 Combined Existing (2015) 52,700 New Development (2015-Buildout) 24,300 Total (Buildout) 77,000 Worker demand is weighted at 0.05 of resident demand based on the City of Dublin Public Facilities Fee Study completed 1998 by Hausrath Economics Group. Source:Table 2.1;Public Facilities Fee Study, 1998 Update, Hausrath Economics Group,City of Dublin:Wiildan Financial Services. WWILLDAN 34 Financial Serv,cee City of Dublin Public Facilities Fee Update Facility Inventories & Standards Table 7.2 shows the inventory of existing aquatic facilities. The value of the existing aquatic facilities, $356 per square foot, is based on a recent cost estimate for the Emerald Glen Aquatic Center. Note that the costs only include the pool facilities themselves; buildings and site work are not included in the cost estimate. Table 7.2: Existing Aquatic Facilities Cost per Surface Area Square Foot' Total Cost Existing Facilities Dublin Swim Center Main Pool 8,987 $ 356 $ 3,199,400 Dublin Swim Center Play Pool 1,010 356 359,600 Emerald Glen Indoor Pool 6,270 356 2,232,100 Emerald Glen Competitive Pool 6,174 356 2,197,900 Emerald Glen Play Pool 4,538 356 1,615,500 Total Existing Facilities 26,979 $ 9,604,500 Note: Totals have been rounded to the nearest hundred. 1 Represents cost of pools only,excluding building and site work. Source: City of Dublin,Emerald Glen Aquatic Center, Dahlin Group,CD Cost Estimate, 19 July 2014. Cost per Capita Standard Table 7.3 calculates the existing cost per capita facility standard by dividing the value of the existing facilities inventory by the existing service population. The resulting cost per capita is the basis of the impact fee. Funding facilities at this level will ensure that as development occurs, new development will contribute to aquatic facilities at the same standard that existing development has contributed thus far. By definition, using the existing standard methodology results in no existing deficiencies. The cost per capita is then multiplied by the worker-weighting factor identified in Table 7.1 to determine the cost per worker. Table 7.3: Aquatic Facilities Existing Standard Value of Existing Facilities $ 9,604,500 Existing Service Population 52,700 Cost per Capita $ 182 Facility Standard per Resident $ 182 Facility Standard per Workers 9 Based on a weighing factor of 0.05. Sources: Tables 7.1 and 7.2;Willdan Financial Services. WWILLDAN ! 3� Financial Services i City of Dublin Public Facilities Fee Update Fee Schedule Table 7.4 shows the proposed aquatic 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 workers per 1,000 square feet of nonresidential building space). The total fee includes a one percent (1%) 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, mandated public reporting, and fee justification analyses. In Willdan's experience with impact fee programs, one percent of the base fee adequately covers the cost of fee program administration. The administrative charge is not an impact fee; rather, it is a user fee. It 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: Aquatic Facilities - Existing Standard A B C=Ax B D=Cx0.01 E=C+D E/1.000 Cost Per Base Admin Fee per Land Use Capita Density Feet Charge''2 Total Feel Sq. Ft. Residential Dwelling Unit $ 182 2.70 $ 491 $ 5 $ 496 Nonresidential 21 $ 0.02 Commercial $ 9 2.33 $ 21 $ - $ Office 9 3.13 28 - 28 0.03 Industrial 9 1.16 10 - 10 0.01 'Fee per dwelling unit(residential) or per 1,000 square feet(nonresidential). 2Administrative charge of 1.0 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. Sources:Tables 2.2 and 7.3;Willdan Financial Services Use of Fee Revenue The City can use aquatic facilities fee revenues for the construction or purchase of aquatic facilities that are part of the system of aquatic facilities serving new development. Table 7.5 shows the projected fee revenue that would be generated by the aquatic facilities impact fee. NIVWILLDAN 36 Financial Services City of Dublin Public Facilities Fee Update Table 7.5: Revenue Projection -Aquatic Cost per Capita $ 182 Growth in Service Population (2015- Buildout) 24,300 Projected Fee Revenue $ 4,422,600 Sources:Tables 7.1,and 7.3. NIVWILLDAN Financ,al Services 37 B. 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 following indices be used for adjusting fees for inflation: • Buildings—Engineering News-Record's Building Cost Index(BC!) • Equipment — Consumer Price Index, All Items, 1982-84=100 for All Urban Consumers (CPI-U) The indices recommended can be found for local jurisdictions (state, region), and for the nation. With the exception of land, we recommend that the national indices be used to adjust for inflation, as the national indices are not subject to frequent dramatic fluctuations that the localized indices are subject to. Due to the highly variable nature of land costs, there is no particular index that captures fluctuations in land values. We recommend that the City adjust land values based on recent land purchases, sales or appraisals at the time of the update. 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. Reporting Requirements The City complies 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. Programming Revenues and Projects with the CIP The City maintains a five year Capital Improvement Program (CIP) to plan for future infrastructure needs. The CIP identifies costs and phasing for specific capital projects. The use of the 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 as long as those new projects continue to represent an expansion of the City's facilities. 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. WWILLDAN 38 Pinancial vIce: 9. Mitigation Public facilities fees are one-time fees typically paid when a building permit is issued and imposed on development projects by local agencies responsible for regulating land use (cities and counties). To guide the widespread imposition of public facilities fees, the State Legislature adopted the Mitigation Fee Act (the Act) with Assembly Bill 1600 in 1987 and subsequent amendments. The Act, contained in California Government Code Sections 66000 through 66025, establishes requirements on local agencies for the imposition and administration of fee programs. The Act requires local agencies to document five Mitigation Fee Act findings when adopting a fee. The five statutory findings required for adoption of the public facilities fees documented in this report are presented in this chapter and supported in detail by the preceding chapters. All statutory references are to the Act. Purpose of Fee • Identify the purpose of the fee(§66001(a)(1) of the Act). Development impact fees are designed to ensure that new development will not burden the existing service population with the cost of facilities required to accommodate growth. The purpose of the fees proposed by this report 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 public facilities to 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). Fees proposed in this report, if enacted by the City, would be used to fund expanded facilities to serve new development. Facilities funded by these fees are designated to be located within the City's sphere of influence. Fees addressed in this report have been identified by the City to be restricted to funding the following facility categories: civic center, library, aquatic facilities, parks and community recreation centers. 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 additional residents and workers associated with new development. Under the Act, fees are not intended to fund planned facilities needed 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). /'WILLDAN Financial Services City of Dublin Public Facilities Fee Update Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For each facility category, demand is measured by a single facility standard that can be applied across land use types to ensure a reasonable relationship to the type of development. For most facility categories, 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. The standards used to identify growth needs are 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. Chapter 2, Growth Forecasts provides a description of how service population and growth forecasts are calculated. Facility standards are described in the Facility Standards sections of each facility category chapter. 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 new development growth the project will accommodate. Fees for a specific project are based on the project's size. Larger new 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. See Chapter 2, Growth Forecasts and Unit Costs, or the Service Population sections in each facility category chapter for a description of how service populations or other factors are determined for different types of land uses. See the Fee Schedule section of each facility category chapter for a presentation of the proposed facilities fees. , WILLDAN 40 Financial Service I / a) CU ± e 2 C 1 0 c = a o m e co co / 7 t , G _ o 1- » co • � / ft EaEaT- m U. \ I \ ? f ƒ ƒ G ¥ & n c e « \ » 2 , , 9 ,- / & % CO .,- © / o - - 69mmmmm 4. / Ea \ ƒ ± 7 e ° § CO ^ o o q ¥ / L c E , 7 3 \ # & # r E � Ela 49- g69 gmEa2k 2/k 3 v ƒ 12 = a a /in To # - /CO / / 5 c - e co ¥ m t • \ % Cr) & ? $ \ ƒ ƒ \ 2eada69EaEa � 2 ƒ . m a) £ _ E ( \ / 2 /_ 9 f \ R E\ .-E CO IE 0) / CO / m @ -- ct .Y « 2 = & I I % e m g � .5 -o -o -E k o o 7 / . \ c o o = _ _ = 0 = _ / / E E E E = E b° .o. E E E E § E Ei .g 5 CT) -Cr) o 0 0 0 = o ± .5 9 Q Z Z 0 0 0 O < O 2_o R