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HomeMy WebLinkAboutItem 6.2 AdjFeesFutureDev (2) . . . ~. CITY CLERK File # Df3Jl9][Q]-[2][Q] "".. AGENDA STATEMENT CITY COUNCIL MEETING DATE October 6,1998 SUBJECT: Public Hearing: Adjustments of Fees for Future Development within the City of Dublin Report by: Elizabeth H. Silver, City Attorney ATTACHMENTS: I. Resolution Expressing Intent to Adjust Fire Facilities, Traffic Impact and Public Facilities Development Fees RECOMMENDA TION: ~ 1. Open Public Hearing 2. Receive StaffPresentMlon and Public Comment 3. Close Public Hearing and Deliberate 4. Adopt Resolution Expressing Intent to Adjust Fees to Reflect Inflation Adjustments (Attachment~) FINANCIAL STA TEMENT: The adjustment of development impact fees will track increases in the cost of improvements. DESCRIPTION: Since 1995, the City has adopted fees to pay for the impacts of new development on fire facilities, circulation, and public facilities (Resolution No. 37-97; Resolution No. 41-96; and Resolution No. 32-96, (together the "Fees"). As adopted, these three Fees do not provide any mechanism to allow them to be adjusted to keep pace with inflation. This resolution would express the City's intent to modifY these Fees by annually adjusting them based on the Construction Cost Index for the San Francisco Bay Area ("CCI") and the Land Index. The CCI is an index of changes in the cost of constructing buildings and facilities in the Bay Area and would be applied to construction costs. In determining the Fees, the City prepared various reports, which included appraisals of the value of the land or areas in which the improvements would be constructed. The Land Index is an index of changes in the appraised values of those properties, as adjusted to reflect any properties which are acquired by the City. The Land Index would be applied to land costs. Staff recommends that the Council adopt this resolution as the first step to modifYing these Fees, because it will give potential developers, including applicants for vesting tentative maps, notice that the Council is amending the Fees. By law, approval of a vesting tentative map "confers a vested right to proceed with a development in substantial compliance with the ordinances, policies and standards in effect at the time the application for approval of the vesting tentative map is complete." A related provision of the Subdivision Map Act and applicable court decisions indicate that the adoption of this resolution, giving notice of the - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - COPIES TO: ITEMNO.~ G/CC-MTGS/98-QTR4/0CT/1 0-6-98/ AS-FEE Council's intent to increase the Fees, would signal a change in the City's "policies and standards" with regard to the Fees. The adoption of the resolution will thus put developers and others on notice that-the l Council is in the process of adopting an inflation adjustment for the Fees. As a result, the approved vesting tentative maps for which applications are completed after adoption of this resolution will be subject to the inflation adjustments. If the Council adopts this resolution, Staffwill begin preparing the resolutions and supporting materials by which the City may impose these contemplated inflation adjustments. Recommendation At the close of the l?ublic hearing, adopt resolution (Attachment I). -;2.- . . . . . . ,.4 ~. RESOLUTION NO. ~ 98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ************** EXPRESSING THE CITY'S INTENT TO ADJUST FIRE FACILITIES, TRAFFIC IMPACT AND PUBLIC FACILITIES DEVELOPMENT FEES WHEREAS, the City has authorized the following fees (together the "Fees") to pay for certain municipal improvements to off-set certain impacts of new development: I. the "Fire Facilities Fee for Future Development Within the City of Dublin," adopted by Resolution No. 37-97 on April 15, 1997; 2. the "Traffic Impact Fee and Area of Benefit Fee for Future Developments Within the Eastern Dublin Area," adopted by Resolution No. 1-95 on January 9, 1995, as revised by Resolution No. 41-96 on April 9, 1996; and 3. the "Public Facilities Fee for Future Developments Within the City of Dublin," adopted by Resolution No. 32-96 on March 26, 1996; and WHEREAS, the cost of providing the improvements to off-set the impacts paid for by the Fees has increased since the Fees were adopted; and WHEREAS, the City desires to continue to provide and maintain high quality fire facilities, circulation improvements, and public facilities for the benefit of the residents of Dublin; and WHEREAS, the City's professional staff have advised the City Council that, in future years, changes in the costs of providing the improvements paid for by the Fees are expected to be strongly correlated to changes in the costs of construction and the cost ofland; and WHEREAS, in order to determine the Fees, and to provide evidence to support the above resolutions, the City prepared various reports, which reports included appraisals of the value of the properties or areas in which the improvements would be constructed; and WHEREAS, the City shall periodically hire a qualified appraiser to reappraise the value of that land evaluated in the reports for the Fees, adjusting the reappraisal to account for any such land which has been acquired by the City; and WHEREAS, the City shall compare the reappraised value of that land to the previous appraised value ofthat land to determine the annual percentage increase in the value of that land (the "Land Index"); and WHEREAS, the Engineering News Record annually publishes an index of changes in the cost of construction for the San Francisco Bay Area (the "Construction Cost Index" or "CCf'); and ATTACHMENT 1 "'~ .. NOW THEREFORE, be it resolved that: 1) The City intends to amend the Fees by annually adjusting them to reflect changes in . the Land Index and the CCI. The City presently does not intend to amend in any other way the Fees, the impacts they off-set or the calculations upon which they are based. 2) Staff is directed to schedule public hearings (pursuant to Government Code sections 66016 et seq.) and to prepare resolutions to amend the Fe.es to include the automatic adjustments as noted above. PASSED, APPROVED AND ADOPTED this 6th day of October, 1998. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: . City Clerk K2 /G/cc-mtgs/ 1 0-6-98/resofee. doc .