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HomeMy WebLinkAboutReso 100-23 Revising the Public Facilities Fee for Future Developments Within the City of Dublin Reso. No. 100-23, Item 6.1, Adopted 09/05/2023 Page 1 of 8 RESOLUTION NO. 100 – 23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN REVISING THE PUBLIC FACILITIES FEE FOR FUTURE DEVELOPMENTS WITHIN THE CITY OF DUBLIN 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 (the “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 and 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 April 19, 2022 by Resolution No. 38-22, which included a review of the CEQA Addendum; and WHEREAS, the City Council has adopted several individual park master plans including but not limited to 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 Dublin Library with all improvements being made to the 37,000-square- foot building falls within the Alameda County Library Master Space Plan (dated January 2017) standard square foot per capita range of 0.45 to 0.55; 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 WHEREAS, the Park Master Plans, Library Reports, Civic Center Reports, Senior Center Study, and SPs, describe the municipal public facilities necessary for implementation of the GP and SPs, including completion of City office space, construction of and improvements to DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A Reso. No. 100-23, Item 6.1, Adopted 09/05/2023 Page 2 of 8 the library, and the 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 new development fund its fair share of the costs needed for the acquisition and/or construction 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 ensure that development within Eastern Dublin pays it 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;” and WHEREAS, in 1999, the City Council adopted Resolution No. 60-99 revising the “Public Facilities Fee” and incorporated and relied on a report prepared by Hausrath Economics Group, dated February 1999 and entitled “Public Facilities Fee 1998 Update;” and WHEREAS, in 2002, the City Council adopted Resolution No. 214-02 revising the “Public Facilities Fee” and incorporated and relied on a report prepared by MuniFinancial, dated October 14, 2002 and entitled “City of Dublin Public Facilities Fee Study Update;” and WHEREAS, in 2015, the City Council adopted Resolution No. 134-15 revising the “Public Facilities Fee” and incorporated and relied on a report prepared by Willdan Financial Services, dated July 7, 2015 and entitled “City of Dublin Public Facilities Fee Study Update;” and WHEREAS, in 2017, the City Council adopted Resolution No. 110-17 revising the “Public Facilities Fee” and incorporated and relied on a report prepared by Willdan Financial Services, dated July 19, 2017 and entitled “City of Dublin Public Facilities Fee Study Update;” and WHEREAS, Section 9 of Resolution No. 110-17 provides that the City will periodically review the “Public Facilities Fee” and make revisions as appropriate; and WHEREAS, the City recently retained Willdan Financial Services to assist the City in reviewing and updating the Fee; and WHEREAS, Willdan Financial Services prepared a report dated August 5, 2023 and entitled “City of Dublin Public Facilities Fee Study Update” (hereafter “2023 Study Update”), which is attached hereto as Exhibit A; and DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A Reso. No. 100-23, Item 6.1, Adopted 09/05/2023 Page 3 of 8 WHEREAS, Resolution Nos. 110-17, 134-15, 214-02, 60-99 and 32-96 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 2023 Study Update relies on the City of Dublin’s previous studies and demonstrates the appropriateness of modifying the Fee in certain respects, primarily (1) to update persons per dwelling unit based on dwelling types (Single family and townhomes; other multi-family; senior housing); and (2) to increase improvement costs to reflect the City’s recent costs to improve parks; and WHEREAS, the 2023 Study Update was noticed to the public 30 days, 10 days, and five days prior to this public hearing, and a meeting for interested parties was held in August 2023; and WHEREAS, the City Council finds as follows: A. The purpose of the Fee is to ensure that new development will not burden the existing service population with the cost of facilities required to accommodate development. The Fee is intended to provide a funding source from new development for capital improvements to serve that development. Such capital improvements which are specifically described in the 2023 Study Update, include the following: build-out of the Library; acquisition and construction of neighborhood and community parks; acquisition, construction or build out of 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 2023 Study Update, the testimony received at this noticed public hearing, the Staff Report, and the records of all previous proceedings adopting or revising the Fee (the “Record”), the City Council approves and adopts the 2023 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, 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 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. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A Reso. No. 100-23, Item 6.1, Adopted 09/05/2023 Page 4 of 8 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. The City currently provides neighborhood and community park services, community and recreation facilities services, and civic center services. The City and the Alameda County Library system currently provide library services. F. The 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)). G. In adopting the Fee, the City Council is exercising its powers under Article XI, section 7 of the California Constitution. H. 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. 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; 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 2023 Study Update 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. I. The 2023 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. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A Reso. No. 100-23, Item 6.1, Adopted 09/05/2023 Page 5 of 8 A. “Commercial” shall mean all commercial, retail, educational, and hotel/motel development. 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 1998 Study Update, the 2002 Study Update, the 2015 Study Update, the 2017 Study Update, and the 2023 Study Update and as described in the Park Master Plans, the Library Reports, the Civic Center Reports, the Senior Center Study, GP, SPs, 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 2023 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 all manufacturing and warehouse development. E. “Office” shall mean all general, professional, and medical office development. 2. Administrative Guidelines. The City Council adopted by Resolution 147-16 on September 6, 2016, the Dublin Consolidated Impact Fee Administrative Guidelines, (the “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 Administrative Guidelines are incorporated herein by this reference, as they may be amended from time to time. 3. Public Facilities Fee Imposed. The Fee shall be charged and paid on a square-footage basis for residential unit and non- residential buildings or structures. The fee shall also be charged and paid for non-residential development for any addition to an existing building or structure if the addition exceeds 500 square feet. Fees shall be paid at such time as set forth in the Administrative Guidelines. 4. Reimbursement or Credit. The amount of any reimbursement or credit shall be determined by use of the calculations set forth in the Administrative Guidelines. 5. Amount of Fee. The amount of the Fee shall be as set forth in Exhibit A attached hereto and incorporated herein. Each component of the Fee shall be considered to be a separate fee. 6. Exemptions From Fee. The Fee shall not be imposed on any development qualifying for an exemption as set forth in the Administrative Guidelines. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A Reso. No. 100-23, Item 6.1, Adopted 09/05/2023 Page 6 of 8 7. 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 supplement 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. 8. 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 Park Master Plans, the Library Reports, the Civic Center Reports, the Senior Center Study, the GP, SPs, EIR, and Addenda. 9. 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. 10. Subsequent Analysis and Revision of the Fee. The Fee established herein is adopted and implemented by the City Council in reliance on the Record. 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, and Senior Center Study, as well as increases due to changes in construction DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A Reso. No. 100-23, Item 6.1, Adopted 09/05/2023 Page 7 of 8 costs and land values. The City will evaluate land values through an appraisal at least every three (3) years. The Study will be updated at least every eight (8) years. 11. 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, 2024 and each July 1 thereafter, as follows: A. The costs of construction of the Facilities (as shown on Table 3.3 for Public Safety Complex improvements; 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 2023 Study Update shall be increased/decreased by the annual percentage increase/decrease 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 Neighborhood and Community Parks in the 2023 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. The City will continue to use the same formula to adjust the Fees on July 1 annually. The City Manager may round the Fee adjustment to whole dollars. 12. Effective Date. This resolution shall become effective immediately. In compliance with Government Code section 66017, the Fee shall be effective on January 1, 2024. 13. 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 adjusted 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. {Signatures on the following page} DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A Reso. No. 100-23, Item 6.1, Adopted 09/05/2023 Page 8 of 8 PASSED, APPROVED AND ADOPTED this 5th day of September 2023, by the following vote: AYES: Councilmembers Hu, Josey, McCorriston, Qaadri and Mayor Hernandez NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 5478734.2 DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A CITY OF DUBLIN PUBLIC FACILITIES FEE STUDY UPDATE FINAL AUGUST 5, 2023 Oakland Office Corporate Office Other Regional Offices 66 Franklin Street 27368 Via Industria Aurora, CO Suite 300 Suite 200 Orlando, FL Oakland, CA 94607 Temecula, CA 92590 Phoenix, AZ Tel: (510) 832-0899 Tel: (800) 755-6864 Plano, TX Fax: (888) 326-6864 Seattle, WA Washington, DC www.willdan.com Exhibit A DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A This page intentionally left blank. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A i TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................... 3 Background and Study Objectives 3 Development Impact Fee Schedule Summary 3 Other Funding Needed 4 Existing Impact Fee Fund Balances 4 1. INTRODUCTION ........................................................................... 5 Public Facilities Financing in California 5 Study Objectives 5 City of Dublin Public Facilities Fee Program 6 Fee Program Maintenance 6 Study Methodology 6 Types of Facility Standards 7 New Development Facility Needs and Costs 7 Administrative Costs 8 Organization of the Report 9 2. DEVELOPMENT FORECAST ......................................................... 10 Land Use Types 10 Impact Fees for Accessory Dwelling Units 10 Existing and Future Development 11 Occupant Densities 12 3. CIVIC CENTER FACILITIES .......................................................... 13 Service Population 13 Facility Inventories and Standards 14 Existing Inventory 14 Planned Facilities 14 Cost Allocation 15 Existing Level of Service 15 Future Level of Service 15 Projected Fee Revenue 16 Fee Schedule 16 4. LIBRARY FACILITIES ............................................................... 4-18 Service Population 4-18 Facility Inventories, Plans & Standards 4-19 Planned Facilities 4-19 Facility Standards 4-19 Existing Level of Service 4-20 Future Level of Service 4-20 Projected Fee Revenue 4-21 Fee Schedule 4-21 5. PARK FACILITIES ....................................................................... 23 DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update ii Service Population 23 Facility Inventories and Standards 24 Existing Inventory 24 Parkland Unit Costs 26 Improved Parkland Equivalent 26 Existing Park Facility Standards 27 Facilities Needed to Accommodate New Development 27 Parks Cost per Capita 29 Fee Schedule 30 6. COMMUNITY RECREATION FACILITIES ......................................... 32 Service Population 32 Facility Inventories & Standards 33 Planned Facilities 34 Cost Allocation 34 Existing Level of Service 34 Future Level of Service 35 Projected Fee Revenue 36 Fee Schedule 36 7. AQUATIC FACILITIES .................................................................. 38 Service Population 38 Facility Inventories & Standards 39 Cost Allocation 39 Existing Level of Service 39 Future Level of Service 40 Projected Fee Revenue 40 Fee Schedule 41 8. AB 602 REQUIREMENTS ............................................................ 42 Compliance with AB 602 42 66016.5. (a) (2) - Level of Service 42 66016.5. (a) (4) – Review of Original Fee Assumptions 42 66016.5. (a) (5) – Residential Fees per Square Foot 43 66016.5. (a) (6) – Capital Improvement Plan 44 9. IMPLEMENTATION ...................................................................... 45 Impact Fee Program Adoption Process 45 Inflation Adjustment 45 Reporting Requirements 45 Programming Revenues and Projects with the CIP 45 10. MITIGATION FEE ACT FINDINGS .................................................. 47 Purpose of Fee 47 Use of Fee Revenues 47 Benefit Relationship 47 Burden Relationship 48 Proportionality 48 DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A 3 Executive Summary This report summarizes an analysis of public facilities fees needed to support future development in the City of Dublin through 2040. 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 Facilities ▪ 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 development. Although development 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 development. 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. Development Impact Fee Schedule Summary Table E.1 summarizes the proposed development impact fee that would meet the City’s identified needs and would comply with the requirements of the Mitigation Fee Act. Table E.1: Maximum Justified Impact Fee Summary by Fee Category Land Use Civic Center Facilities Library Facilities Parks Community Recreation Facilities Aquatic Facilities Total Residential Dwelling Unit - per Sq. Ft.1.15$ 0.22$ 15.61$ 2.12$ 0.17$ 19.27$ Nonresidential - per Sq. Ft. Commercial 0.45$ 0.07$ 3.37$ 0.13$ 0.01$ 4.03$ Office 0.69 0.11 5.18 0.20 0.02 6.19 Industrial 0.24 0.04 1.84 0.07 0.01 2.20 Senior Service Facility 0.20 0.03 1.51 0.06 0.01 1.80 Sources: Tables 3.5, 4.6, 5.8, 6.5 and 7.4. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 4 Other Funding Needed Impact fees can only fund the share of public facilities attributable to new development in Dublin. They cannot be used to fund the share of facility needs generated by existing development or by development outside of the City. 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. Those costs are added to the cost of planned facilities and included in the fee analysis. Table E.2 summarizes the existing impact fee fund balances. Table E.2: Impact Fee Fund Balances Category: Fund Balances for FY2022-23 Community Park Land 9,888,069$ Neighborhood Park Land 10,438,678 Community Park Improvements (29,855,078) Neighborhood Park Improvements 4,657,451 Community Buildings (2,016,678) Library (259,698) Civic Center 6,286,939 Aquatic Center (3,191,042) Quimby Act Park In-Lieu Fees - Community Nature Park Land 6,386 Community Nature Park Improvements 372,423 Total (3,672,550)$ Source: City Of Dublin. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A 5 1. Introduction This report presents an analysis of the need for public facilities t o 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 45 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 “development 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. 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 development. 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 factual and analytical support for the City Council to make 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 development through 2040. This development 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 development. This report makes use of the most current available development 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. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 6 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 p lace since 1996. The PFF funds civic center, parks, library, community recreation facilities, and aquatics 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. In 2015 and in 2017, Willdan updated the fee program again for changes in facility plans and development forecasts. 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. T o avoid collecting inadequate revenue, the City must update inventories of existing facilities and the costs for planned facilities, and then recalculate the fees 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 9. 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 development forecasts and/or facility plans become available. In this case, it has been two years since the City last comprehensively updated its fee program. For further detail on fee program implementation, see Chapter 9. Study Methodology Development impact fees are calculated to fund the cost of facilities required to accommodate development. The six steps followed in this development impact fee study include: 1. Estimate existing development and future development: Identify a base year for existing development and a development 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 ac commodate new development; 5. Calculate fee schedule: Allocate facilities costs per unit of new development to calculate the development impact fee schedule; and DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 7 6. Identify alternative funding requirements: Determine if any non-fee funding is required to complete projects. The key public policy issue in development impact fee studies is the identification of facility standards (step #2, above). Facility standards document a reasonab le 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 development, 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 development 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 disadva ntages of each method are summarized below: 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 DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 8 This method is appropriate when planned facilities will entirely serve new development, or when a fair share allocation of the cost 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 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 suc h 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 p olicy-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 used to calculate the community center facilities and aquatic facilities fees in this study. 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 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 development are identified through an annual capital improvement plan and budget process, possibly after completion of a new facility master plan. This approach is not used in this report. Administrative Costs This report presents a fee schedule for each facility category examined in the analysis. 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 colle ction, 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. = $/unit of demand = $/unit of demand DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 9 Organization of the Report The determination of a public facilities fee begins with the selection of a planning horizon and identification of development 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 Facilities ▪ Aquatic Facilities Chapter 8 describes how this study complies with the requirements of AB 602. Chapter 9 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. The five statutory findings required for adoption of the proposed public facilities fees in accordance with the Mitigation Fee Act are documented in Chapter 10. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A 10 2. Development Forecast Development 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 development projections used in this study based on a 2023 base year and a planning horizon of 2040. Estimates of existing development and projections of future development are critical assumptions used throughout this report. These estimates are used as follows: ▪ The estimate of existing development in 2023 is used as an indicator of existing facility demand and to determine existing facility standards. ▪ The estimate of total development at 2040 is used as an indicator of future demand to determine total facilities needed to accommodate development and remedy existing facility deficiencies, if any. ▪ Estimates of development from 2023 through 2040 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, development projections distinguish between different land use types. The land use types that impact fees have been calculated for are defined below. ▪ Residential dwelling units: All residential dwelling units including detached and attached one-unit dwellings (Includes single family homes and townhomes) and attached multifamily dwellings including duplexes and condominiums. Fees charged per square foot. ▪ Commercial: All commercial, retail, educational, and hotel/motel development. ▪ Office: All general, professional, and medical office development. ▪ Industrial: All manufacturing and warehouse development. ▪ Senior Service Facilities: Convalescent care facilities. 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. Impact Fees for Accessory Dwelling Units The California State Legislature recently amended requirements on local agencies for the imposition of development impact fees on accessory dwelling units (ADU) with Assembly Bill AB 68 in 2021. The amendment to California Government Code §65852.2(f)(2) stipulates that local agencies may not impose any impact fees on ADUs less than 750 square feet. ADUs greater DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 11 than 750 square feet can be charged impact fees in proportion to the size of the primary dwelling unit. Calculating Impact Fees for Accessory Dwelling Units For ADUs greater than 750 square feet, impact fees can be charged as a percentage of the single family impact fee. The formula is: 𝐴𝐷𝑈 𝑅𝑝𝑝𝑎𝑝𝑐 𝐹𝑐𝑐𝑝 𝑃𝑝𝑖𝑙𝑎𝑝𝑦 𝑅𝑐𝑝𝑖𝑐𝑐𝑙𝑐𝑐 𝑅𝑝𝑝𝑎𝑝𝑐 𝐹𝑐𝑐𝑝 × 𝑅𝑖𝑙𝑔𝑙𝑐 𝐹𝑎𝑙𝑖𝑙𝑦 𝐼𝑙𝑝𝑎𝑐𝑝 𝐹𝑐𝑐 = 𝐴𝐷𝑈 𝐼𝑙𝑝𝑎𝑐𝑝 𝐹𝑐𝑐 In the case of an 800 square foot ADU and a 1,600 square foot primary residence, the impact fees would be 50 percent (800 square feet / 1,600 square feet = 50%) of the single family dwelling unit fee. Existing and Future Development Table 2.1 shows the estimated number of residents, dwelling units, workers, and building square feet in Dublin, both in 2023 and in 2040. These estimates are used to calculate the fees for all fee categories. The current population estimate for Dublin comes from the California Department of Finance (DOF). The population projection of population and dwelling units is based on the City’s General Plan, plus additional housing opportunity sites identified in the City ’s recent housing element. Base year workers were estimated based on data provided by the California Employment Development Department (EDD). The projected increase in employment is based on projections for Dublin from the Association of Bay Area Governments (ABAG) Plan Bay Area. 2023 2040 Growth (2023-2040) Residents 1 67,734 81,708 13,974 Dwelling Units 1 Single Family / Townhome 17,082 18,839 1,757 Multi-family / Apartment / Condominium 8,222 11,843 3,621 Total 25,304 30,682 5,378 Employment2 21,702 31,115 9,413 1 Base year population from CA Department of Finance, Table E-5. Excludes group quarters. 2040 estimate calculated by multiplying increase in dwelling units by current occupant densities for single family and multifamily units. 2 Base year employment from OnTheMap. Excludes local government employees. 2040 estimate of employment in Dublin from ABAG's Plan Bay Area. Sources: City of Dublin; California Department of Finance, Table E-5, 2023; California Employment Development Department, QCEW, 2021; Association of Bay Area Governments, Plan Bay Area ; Willdan Financial Services. Table 2.1: Current Population and Employment Estimates DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 12 Occupant Densities All fees in this report are calculated based on dwelling units or building square feet. Because service demand is based on population, it is necessary to use occupant density assumptions to calculate per-unit and per-square-foot fees. 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 f oot) 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 of the development. The average occupant density factors used in this report are shown in Table 2.2. The residential occupant density factor across all dwelling units was calculated using the most recently available data from US Census’ American Community Survey specific to the City of Dublin. Table B25033 identifies the estimated population and Table B25024 identifies the total number of dwelling units. The average occupant density calculated by dividing the population by the estimate of total dwelling units is shown in Table 2.2. The nonresidential occupancy factors are derived from data from the Institute of Traffic Engineers Trip Generation Manual, 11th Edition. Table 2.2: Occupancy Density Assumptions Residential Dwelling Units 2.70 Persons per dwelling unit Nonresidential Commercial 2.12 Employees per 1,000 sq. ft. Office 3.26 Employees per 1,000 sq. ft. Industrial 1.16 Employees per 1,000 sq. ft. Senior Service Facility 0.95 Employees per 1,000 sq. ft. Sources: Tables B25024 and B25033, U.S. Census Bureau, 2021 American Community Survey; ITE Trip Generation Manual, 11th Edition; Willdan Financial Services. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A 13 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 A x B = C Persons Weighting Factor Service Population Residents Existing (2023)67,734 1.00 67,734 New Development (2023-2040)13,974 1.00 13,974 Total (2040)81,708 81,708 Workers Existing (2023)21,702 0.31 6,728 New Development (2023-2040)9,413 0.31 2,918 Total (2040)31,115 9,646 Combined Existing (2023)74,462 New Development (2023-2040)16,892 Total (2040)91,354 Sources: Table 2.1; Willdan Financial Services. Note: Workers are weighted at 0.31 of residents based on the ratio of work hours to non-work hours in a week (40/128). Totals have been rounded to the nearest hundred. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 14 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 civic center building and land inventory. The replacement cost for the building is based on an estimate from the City’s prior impact fee study adjust for inflation to 2023. The value of land is assumed to be $1,544,300 and is based on an analysis of commercial land sales comparisons from 2018 to 2022 within the City as reported by Costar. Unit Cost Replacement Cost Civic Center Land1 8.51 acres 1,544,300$ 13,141,993$ Building2 26,344 sq. ft.566 14,909,199 Vehicles 3 vehicles 31,000 93,000 Subtotal 28,144,192$ Public Safety Complex Land1 5.74 acres 1,544,300$ 8,864,282$ Building2 25,836 sq. ft.715 10,971,370 Vehicles 56 vehicles 40,948 2,293,082 Subtotal 22,128,734$ Total Value - Civic Center 50,272,926$ Table 3.2: Existing Civic Center Facilities Inventory Inventory 1 Land value for commercial land based on analysis of commercial land sales comparisons in Dublin as reported by Costar from 2018 to 2022. Sources: City of Dublin; Engineering News Record; Costar; Willdan Financial Services. 2 Building values adjusted for inflation from prior nexus study in 2017 to 2023 using the Engineering News Record's Building Cost Index. Replacement cost excludes $7,513,061 which is the net cost borrowed from the General Fund in order to construct the facility, shown in Table 3.3. Planned Facilities The City of Dublin plans to make improvements to the public safety complex. The total cost of the improvement is $13.8 million. Table 3.3 presents the planned civic center facilities cost estimates. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 15 Table 3.3: Planned Civic Center Facilities Total Cost Pubic Safety Complex 13,800,000$ Less Existing Fund Balance 6,286,939 Net Cost - Planned Civic Center Facilities 7,513,061$ Source: City of Dublin. Cost Allocation Existing Level of Service Per the nexus study requirements that went into effect of January 1, 2022, a nexus study “shall identify the existing level of service for each public facility, identify the proposed new lev el of service, and include an explanation of why the new level of service is appropriate.” Table 3.4 expresses the City’s current civic center facilities level of service in terms of an existing cost per capita. This cost per capita is not used in the fee calculation, rather it is shown here for informational purposes only. Once the planned facilities have been constructed and new development has increased the City’s service population the resulting facility cost per capita will be lower than the cost per capita shown in Table 3.4. Table 3.4: Civic Center Facilities Existing Standard Value of Existing Facilities 50,272,926$ Existing Service Population 74,462 Cost per Capita 675$ Facility Standard per Resident 675$ Facility Standard per Worker1 209 1 Based on a weighing factor of 0.31. Sources: Tables 3.1 and 3.2; Willdan Financial Services. Future Level of Service Table 3.5 details the calculation of the planned facilities per capita standard. This value is calculated by dividing the total 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. This level of service standard is lower than the existing standard. This level of service is appropriate because it is the level of service resulting from the buildout of the City’s planned facilities. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 16 Cost of Planned Facilities 7,513,061$ (Less Existing Fund Balance)(372,423) Net Value of Planned Facilities 7,140,638$ Service Population Growth (2023 to 2040)16,892 Cost per Capita 423$ Facility Standard per Resident 423$ Facility Standard per Worker1 131 1 Based on a weighing factor of 0.31. Sources: Tables 3.1 and 3.3; Willdan Financial Services. Table 3.5: Civic Center Facilities Planned Facilities Standard Projected Fee Revenue Under the planned facilities approach, the projected fee revenue is equal to the net cost of the planned facilities. Fee Schedule Table 3.6 shows the maximum justified 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 employees per 1,000 square feet of nonresidential building space). The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 17 Table 3.6: Civic Center Facilities Fee - Planned Facilities Standard A B C = A x B D = C x 0.01 E = C + D E / 1,000 Cost Per Base Admin Fee per Land Use Capita Density Fee 1 Charge 1, 2 Total Fee 1 Sq. Ft.3 Residential Dwelling Unit $ 423 2.70 1,142$ 11$ 1,153$ 0.72$ Nonresidential Commercial 131$ 2.12 278$ 3$ 281$ 0.28$ Office 131 3.26 427 4 431 0.43 Industrial 131 1.16 152 2 154 0.15 Senior Care Facility 131 0.95 124 1 125 0.13 1 Fee per average sized dwelling unit (residential) or per 1,000 square feet (nonresidential). Sources: Tables 2.2 and 3.5; Willdan Financial Services 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. 3 Assumes average dwelling unit is 1,603 square feet based on an analysis of building permits issued between 7-1-2021 and 6-30-2022. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A 4-18 4. Library Facilities 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. That analysis relied on survey data of nonresidential facilities use in nearby Pleasanton. Since Dublin and Pleasanton are adjacent suburban cities in the East Bay, it is reasonable to assume that worker demand for these types of facilities from Pleasanton is similar to worker demand in Dublin. Table 4.1: Library Service Population A B A x B = C Persons Weighting Factor Service Population Residents Existing (2023)67,734 1.00 67,734 New Development (2023-2040)13,974 1.00 13,974 Total (2040)81,708 81,708 Workers Existing (2023)21,702 0.25 5,426 New Development (2023-2040)9,413 0.25 2,353 Total (2040)31,115 7,779 Combined Existing (2023)73,160 New Development (2023-2040)16,327 Total (2040)89,487 1 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. Source: Public Facilities Fee Study, 1998 Update, Hausrath Economics Group; City of Dublin; Table 2.1, Willdan Financial Services. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 4-19 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 an estimate from the City’s prior impact fee study adjust for inflation to 2023. The value of land is assumed to be $1,544,300 and is based on an analysis of commercial land sales comparisons from 2018 to 2022 within the City as reported by Costar. Table 4.2: Existing Library Facilities Inventory Unit Cost Total Replacement Cost Existing Land 3.75 acres 1,544,300$ 5,791,100$ Building1 37,000 sq. ft.730 27,010,000 Total Value of Existing Facilities 32,801,100$ Amount 1 The 37,000 square foot library building was completed in Fiscal Year 2002-03 and 30,000 square feet was occupied. The 21st Century Room was built out in FY 2016-17. The remaining 5,150 square feet of unoccupied space was reserved for future tenant improvements. Sources: City of Dublin; Costar; Willdan Financial Services. Planned Facilities Table 4.3 displays the planned library facilities. The City plans to make tenant improvements to the unimproved area of the existing library. The total cost of planned library improvements is approximately $1.8 million. Table 4.3: Planned Library Facilities Unit Cost Total Cost Building Improvements Civic Center Library Improvements - Phase II 5,150 sq. ft.356$ 1,835,665$ Total Cost - Planned Library Facilities 1,835,665$ Amount Source: City of Dublin Capital Improvement Program 2022-2027. Facility Standards Table 4.4 calculates the existing and future library facility standards. At buildout the City will have a standard of 0.41 library square feet per capita, which is less than the existing facility standard. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 4-20 Table 4.4: Library Square Feet per Capita Existing 2040 Library Square Feet1 31,850 37,000 Service Population2 73,160 89,487 Square Feet per Capita 0.44 0.41 2 Includes residents and weighted workers. See Table 4.1. Sources: Tables 4.1, 4.2 and 4.3. 1 City constructed 37,000 square foot library building in 2002-03, but only furnished 31,850 square feet of the building. Remainder is funded through this impact fee. Existing Level of Service Per the nexus study requirements that went into effect of January 1, 2022, a nexus study “shall identify the existing level of service for each public facility, identify the proposed new lev el of service, and include an explanation of why the new le vel of service is appropriate.” Table 4.5 expresses the City’s current library facilities level of service in terms of an existing cost per capita. This cost per capita is not used in the fee calculation, rather it is shown here for informational purposes only. Once the planned facilities have been constructed and new development has increased the City’s service population the resulting facility cost per capita will be lower than the cost per capita shown in Table 4.5. Table 4.5: Library Facilities Existing Standard Value of Existing Facilities 32,801,100$ Existing Service Population 73,160 Cost per Capita 448$ Facility Standard per Resident 448$ Facility Standard per Worker1 112 1 Based on a weighing factor of 0.25. Sources: Tables 4.1 and 4.2; Willdan Financial Services. Future Level of Service Table 4.6 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. This level of service is appropriate because it is the level of service resulting from the buildout of the City’s planned facilities. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 4-21 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, approximately $2.1 million of facilities to serve new development will be funded through the impact fee. Table 4.6: Library Facilities Planned Facilities Standard Calculation Value of Planned Facilities A 1,835,665$ Existing Fund Balance B (259,698) Net Cost of Planned Facilities C = A - B 2,095,363$ Service Population Growth (2023 to 2040)D 16,327 Cost per Capita E = C / D 128$ Facility Standard per Resident E 128$ Facility Standard per Worker1 F = E x 0.25 32 1 Based on a worker weighting factor of 0.25. Sources: Tables 4.1, and 4.3; Willdan Financial Services. Projected Fee Revenue Under the planned facilities approach, the projected fee revenue is equal to the net cost of the planned facilities. Fee Schedule Table 4.7 shows the maximum justified library facilities fee schedule. The cost per capita is converted to a fee per unit of new development based on dwelling unit and employment dens ities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 4-22 Table 4.7: Library Facilities Fee - Planned Facilities Standard A B C = A x B D = C x 0.01 E = C + D E / Average Cost Per Base Admin Fee per Land Use Capita Density Fee 1 Charge 2 Total Fee 1 Sq. Ft.3 Residential Dwelling Unit 128$ 2.70 346$ 3$ 349$ 0.22$ Nonresidential Commercial 32$ 2.12 68$ 1$ 69$ 0.07$ Office 32 3.26 104 1 105 0.11 Industrial 32 1.16 37 - 37 0.04 Senior Service Facility 32 0.95 30 - 30 0.03 1 Fee per average sized dwelling unit (residential) or per 1,000 square feet (nonresidential). Sources: Tables 2.2 and 4.6; Willdan Financial Services. 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. 3 Assumes average dwelling unit is 1,603 square feet based on an analysis of building permits issued between 7-1- 2021 and 6-30-2022. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A 23 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 new development contributing to a 5.0 per 1,000 resident park acre standard by 2040. 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. That analysis relied on survey data of nonresidential facilities use in nearby Pleasanton. Since Dublin and Pleasanton are adjacent suburban cities in the East Bay, it is reasonable to assume that worker demand for these types of facilities from Pleasanton is similar to worker demand in Dublin. Table 5.1 provides estimates of the City’s current and projected park service population. Table 5.1: Parks Service Population A B A x B = C Persons Weighting Factor Service Population Residents Existing (2023)67,734 1.00 67,734 New Development (2023-2040)13,974 1.00 13,974 Total (2040)81,708 81,708 Workers Existing (2023)21,702 0.23 4,991 New Development (2023-2040)9,413 0.23 2,165 Total (2040)31,115 7,156 Combined Existing (2023)72,725 New Development (2023-2040)16,139 Total (2040)88,864 Source: Public Facilities Fee Study, 1998 Update, Hausrath Economics Group; City of Dublin; Table 2.1, Willdan Financial Services. 1 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. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 24 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. School parks are included because the City has joint use agreements for using th e school park facilities outside of school hours. School parks are counted as neighborhood parks for the purpose of calculating parkland standards. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 25 Table 5.2: Parkland Inventory Name Improved Acres Unimproved Acres Total Community Parks Don Biddle Community Park 30.00 - 30.00 Dublin Heritage Park & Museums 10.00 - 10.00 Dublin Sports Grounds 22.80 - 22.80 Emerald Glen Park 49.00 - 49.00 Fallon Sports Park 60.10 - 60.10 Jordan Ranch Community Park (GH PAC Vest)- 7.20 7.20 Shannon Park 9.60 - 9.60 Wallis Ranch Community Park - 8.85 8.85 Subtotal 181.50 16.05 197.55 Community Parks - Nature Based Iron Horse Nature Park - 12.10 12.10 Sunrise Park 10.80 - 10.80 Subtotal 10.80 12.10 22.90 Neighborhood Parks Alamo Creek Park 5.30 - 5.30 Bray Commons 4.80 - 4.80 Clover Park 2.00 - 2.00 Cottonwood Creek Park & School 10.08 - 10.08 Croak North - 5.00 5.00 Croak South - 6.50 6.50 Devany Square 2.00 - 2.00 Dolan Park 4.90 - 4.90 Downtown Square 1.00 1.00 Dougherty Hills Dog Park 1.40 - 1.40 Dublin Crossing Neighborhood Park School Site - 5.00 5.00 Jordan Ranch Park 4.90 - 4.90 Jordan Ranch Neighborhood Square - 2.00 2.00 Kolb Park 4.90 - 4.90 Mape Memorial Park 2.60 - 2.60 Passatempo Park 5.10 - 5.10 Piazza Sorrento 2.00 - 2.00 Positano Hills Park 4.60 - 4.60 Schaefer Ranch Park 6.30 - 6.30 SCS Linear Park - 2.50 2.50 Sean Diamond Park 5.03 - 5.03 Stagecoach Park 0.90 - 0.90 Ted Fairfield Park 6.90 - 6.90 Butterfly Knoll Park 1.08 - 1.08 Subtotal 74.79 22.00 96.79 School Parks 43.60 - 43.60 Total 310.69 50.15 360.84 Source: City of Dublin, Parks and Recreation Master Plan, 2022. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 26 Parkland Unit Costs Table 5.3 shows the estimated cost per acre for developing parkland, including land ac quisition, standard park improvements, including construction and soft costs. The value of land is assumed to be $3,559,500 and is based on an analysis of residential land sales comparisons from 2018 to 2022 within the City as reported by Costar. The facility development cost per acre, by park type, is added to the standard land acquisition costs , 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 $15 per square foot. Table 5.3: Park Facilities Unit Costs Item Neighborhood Parks Community Parks Community Parks - Nature Based Improvement Cost per Acre1 1,630,000$ 1,320,000$ 386,500$ Land Acquisition per Acre2 3,559,500 3,559,500 653,400 Total - Land and Improvements Cost per Acre 5,189,500$ 4,879,500$ 1,039,900$ Sources: City of Dublin Capital Improvement Program 2022-2027; Costar; Willdan Financial Services. 2 Land value for parkland land based on analysis of residential land sales comparisons in Dublin as reported by Costar from 2018 to 2022. Nature based parkland assumed to cost $15 per square foot, consistent with prior impact fee study. 1 Improvement costs estimated based on CIP cost estimates for Jordan Ranch Neighborhood Square, Wallis Community Park and Iron Horse Nature Park and Open Space, respectively. Improved Parkland Equivalent Before calculating the existing parkland standard, unimproved parkland owned by the City must be converted to an equivalent amount of improved parkland. This conversion is necessary so that the resulting parkland standards calculated later in this chapter reflects the City’s investment in parkland. Unimproved parkland costs less than improved parkland. If unimproved parkland was used to calculate the parkland standard, then the resulting standard would overstate the City’s standards. Similarly, if unimproved parkland were completely excluded from the calculation of the City’s parkland standard, then the resulting standard would be understated. Table 5.4 details this conversion. The conversion is based on the ratio of the cost of an improved acre of land (including land and improvements) relative to an acre of unimproved parkland (only land), by park type. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 27 Table 5.4: Undeveloped Parkland Equivalent Type Neighborhood Parks Community Parks Community Parks - Nature Based Total Parkland Improved 5,189,500$ 4,879,500$ 1,039,900$ Undeveloped Land 3,559,500 3,559,500 653,400 Undeveloped Land Costs 68.59%72.95%62.83% Percentage of Parkland costs Undeveloped Acres 22.00 16.05 12.10 50.15 Equivalent Improved Acres 15.09 11.71 7.60 34.40 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 5.09 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 Neighborhood Parks1 Community Parks Community Parks - Nature Based Total Existing Developed Acres 118.39 181.50 10.80 310.69 Equivalent Unimproved 15.09 11.71 7.60 34.40 Total 133.48 193.21 18.40 345.09 Existing Population 67,734 67,734 67,734 Existing Standard 1.97 2.85 0.27 5.09 Sources: Tables 5.1, 5.2; Willdan Financial Services. 1 Includes neighborhood parks and school parks. Facilities Needed to Accommodate New Development Recognizing that increased housing allocations have increased projected residential development since the City’s 2017 Public Facilities Fee Update Study, in June 2023, the City revised it ’s park standards. The City still has an overall park standard of 5.0 acres per 1,000 residents, but the DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 28 component standards have been adjusted such that the City can achieve the standards for each type of park land. This was done because the available land for developing new community parks is constrained, and the City does not expect that it can acquire enough land to meet the prior standard given the increased population growth assumptions. It should be noted that the new policy standards noted below are less than the existing facility standards. Consequently, new development will fund parks at a lower standard than currently exists for neighborhood and community parks, and the standard achieved by 2040 will equal the policy standards. The community nature based park component will be charged at a higher standard than currently exists because there is not enough community parkland available to meet the community park standard, so that responsibility is shifted to the community nature based park category. It should be noted that the acquisition and improvement of community nature based parks costs less than that of a community park, while the community nature based standard is increasing, the cost to new development is lower than it would have been, had new development been asked to maintain the current community park standard. 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. For improvement needs, the policy standard per type of parkland is multiplied by the increase in service population to determine the total amount of improvements needed through buildout. Expected developer parkland credits, and fund balance equivalents are subtracted from the total needed improvement acreage to determine the net park improvement needs . For land needs, the policy standard per type of parkland is multiplied by the increase in service population to determine the total amount of improvements needed through buildout. Expected developer parkland credits 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, $135.9 million in parkland and improvements are needed to serve new development through the planning horizon. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 29 Table 5.6: Park Facilities to Accommodate New Development Neighborhood Parks Community Parks Community Parks - Nature Based Total 2040 Park Policy Standard 1.70 2.40 0.90 5.00 2040 Residents 81,708 81,708 81,708 Developed Acres in 2040 140.39 196.10 73.54 Existing Land Acres 140.39 197.55 22.90 Existing Improved Acres 118.39 181.50 10.80 Land Acquisition Net Acreage Needs - - 50.64 Land Credits 8.87 7.97 1.53 Fund Balance Equivalent 2.93 2.78 0.01 Net Land Acquisition - - 49.10 Cost per Acre 3,559,500$ 3,559,500$ 653,400$ Cost of Land Acquisition - - 32,081,135 Improvements Net Improvement Needs 22.00 14.60 62.74 Improvement Credits 0.20 - 0.21 Fund Balance Equivalent 2.86 (22.62) 0.96 Net Improvement Needs 18.94 37.22 61.57 Cost per Acre 1,630,000$ 1,320,000$ 386,500$ Cost of Park Improvements 30,868,441 49,129,344 23,795,839 Total Cost to Meet Standards by 2040 30,868,441$ 49,129,344$ 55,876,974$ 135,874,759$ Sources: City of Dublin, Table 5.3, Willdan Financial Services. 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 facil ity. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 30 Table 5.7: Cost per Capita Standard Calculation Neighborhood Parks1 Community Parks2 Com. Nature Parks2 Total New Development Net Facility Needs Improvements 3 A 30,868,441$ 49,129,344$ 23,795,839$ 103,793,624$ Land B - - 32,081,135 32,081,135 Total C = A + C 30,868,441$ 49,129,344$ 55,876,974$ 135,874,759$ Service Population Growth3 D 13,193 15,358 15,358 Service Population Growth (Land)3 E 13,193 15,358 15,358 Cost per Capita Improvements F = A / D 2,340$ 3,199$ 1,549$ 7,088$ Land G = B / E - - 2,089 2,089 Total Cost per Resident H = F + G 2,340$ 3,199$ 3,638$ 9,177$ Improvements I = F x 0.23 -$ 736$ 356$ 1,092$ Land J = G x 0.23 - - 480 480 Total Cost per Worker K= I + J -$ 736$ 837$ 1,573$ 1 Neighborhood parks fee does not apply to nonresidential development. 2 Service population growth includes residents plus weighted workers equivalent to 2,769 residents. 3 Population growth totaling 781 residents from Dublin Crossings is excluded from this table for both land and improvements. Sources: Tables 5.3 and 5.5; Willdan Financial Services. Fee Schedule Tables 5.8 shows the maximum justified park facilities fee schedule for residential and nonresidential land uses. The cost per capita from Table 5.7 is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 31 Table 5.8: Park Facilities Impact Fee Schedule A B C = A x B D E = C + D E / Average Cost Per Land Use Resident/ Worker Density Base Fee 1 Admin Charge 2 Total Fee Fee per Sq. Ft.3 Residential Residential Dwelling Unit Neighborhood Parkland -$ 2.70 -$ -$ -$ -$ Community Parkland - 2.70 - - - - Community Parkland - Nature Based 2,089 2.70 5,640 56 5,696 3.55 Neighborhood Park Improvements 2,340 2.70 6,318 63 6,381 3.98 Community Park Improvements 3,199 2.70 8,637 86 8,723 5.44 Nature Based Community Park Improvements 1,549 2.70 4,182 42 4,224 2.64 Total 9,177$ 24,777$ 247$ 25,024$ 15.61$ Nonresidential Commercial Neighborhood Parkland -$ 2.12 -$ -$ -$ -$ Community Parkland - 2.12 - - - - Community Parkland - Nature Based 480 2.12 1,018 10 1,028 1.03 Neighborhood Park Improvements - 2.12 - - - - Community Park Improvements 736 2.12 1,560 16 1,576 1.58 Nature Based Community Park Improvements 356 2.12 755 8 763 0.76 Total 1,572$ 3,333$ 34$ 3,367$ 3.37$ Office Neighborhood Parkland -$ 3.26 -$ -$ -$ -$ Community Parkland - 3.26 - - - - Community Parkland - Nature Based 480 3.26 1,565 16 1,581 1.58 Neighborhood Park Improvements - 3.26 - - - - Community Park Improvements 736 3.26 2,399 24 2,423 2.42 Nature Based Community Park Improvements 356 3.26 1,161 12 1,173 1.17 Total 1,572$ 5,125$ 52$ 5,177$ 5.18$ Industrial Neighborhood Parkland -$ 1.16 -$ -$ -$ -$ Community Parkland - 1.16 - - - - Community Parkland - Nature Based 480 1.16 557 6 563 0.56 Neighborhood Park Improvements - 1.16 - - - - Community Park Improvements 736 1.16 854 9 863 0.86 Nature Based Community Park Improvements 356 1.16 413 4 417 0.42 Total 1,572$ 1,824$ 19$ 1,843$ 1.84$ Senior Service Facility Neighborhood Parkland -$ 0.95 -$ -$ -$ -$ Community Parkland - 0.95 - - - - Community Parkland - Nature Based 480 0.95 456 5 461 0.46 Neighborhood Park Improvements - 0.95 - - - - Community Park Improvements 736 0.95 699 7 706 0.71 Nature Based Community Park Improvements 356 0.95 338 3 341 0.34 Total 1,572$ 1,493$ 15$ 1,508$ 1.51$ 1 Fee per average sized dwelling unit (residential) or per 1,000 square feet (nonresidential). Sources: Tables 2.2 and 5.7; Willdan Financial Services. 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. 3 Assumes average dwelling unit is 1,603 square feet based on an analysis of building permits issued between 7-1-2021 and 6-30-2022. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A 32 6. Community Recreation Facilities The purpose of the community recreation facilities impact fee is to fund the community recreation facilities needed to serve new development. A proposed fee is presented based on the system standard of community recreation 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 6.1 shows the existing and future projected service population for community recreation 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. That analysis relied on survey data of nonresidential facilities use in nearby Pleasanton. Since Dublin and Pleasanton are adjacent suburban cities in the East Bay, it is reasonable to assume that worker demand for these types of facilities from Pleasanton is similar to worker demand in Dublin. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 33 A B A x B = C Persons Weighting Factor Service Population Residents Existing (2023)67,734 1.00 67,734 New Development (2023-2040)13,974 1.00 13,974 Total (2040)81,708 81,708 Workers Existing (2023)21,702 0.05 1,085 New Development (2023-2040)9,413 0.05 471 Total (2040)31,115 1,556 Combined Existing (2023)68,819 New Development (2023-2040)14,445 Total (2040)83,264 1 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: Public Facilities Fee Study, 1998 Update, Hausrath Economics Group; City of Dublin; Table 2.1, Willdan Financial Services. Table 6.1: Community Recreation Facilities Service Population Facility Inventories & Standards Table 6.2 shows the inventory of existing community recreation facilities. Note that a share of the Stager Community Gymnasium is allocated to City use based on the City’s proportional contribution to the construction of the facility. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 34 Square Feet City of Dublin Share Square Feet Allocated to City Use Cost per Square Foot1 Total Value Community Recreation Facilities Stager Community Gymnasium2 6,002 69%4,141 701$ 2,902,841$ Senior Center 15,500 100%15,500 701 10,865,500 Shannon Community Center 20,088 100%20,088 701 14,081,700 EGRAC Complex - Phase I3 33,826 100%33,826 1,051 35,561,430 Heritage Facilities Heritage Center and Bell Tower 2,482 100%2,482 701$ 1,739,882$ Old St. Raymond's Church/Visitor Center 1,550 100%1,550 701 1,086,550 Main House 2,304 100%2,304 701 1,615,104 Old House Restroom 1,650 100%1,650 701 1,156,650 Sunday School Barn 2,900 100%2,900 701 2,032,900 Total Existing Facilities 86,302 84,441 71,042,557$ Sources: Dublin Building Detail Report, 2012; Willdan Financial Services. Table 6.2: Existing Community Recreation Facilities Inventory 3 Total cost of EGRAC Phase 1 is $43,830,900. $8,269,500 of that is for the aquatic center/pools and is shown in Table 7.3. 1 Cost to construct new recreation centers based on recent construction cost estimate to build the Emerald Glen Recreation & Aquatic Complex, excluding pool costs. Cost per square foot (unrounded) for EGRAC Phase 1 = $1,051.304. 2 Allocation of Stager Community Gymnasium square footage and facility value to City of Dublin based on the City's contribution of $1 million to the construction of the facility. $1 million represents 69% of the total facility costs, based on information provided by the City. Planned Facilities Table 6.3 details the planned community and recreational facilities. The City plans to complete Phase II of the Emerald Glen Recreation & Aquatic Complex, including a preschool. The City also has future plans for improvements of a 13,500 square foot Cultural Arts Center. Table 6.3: Planned Community Recreation Facilities Total Cost EGRAC Complex - Phase II 17,600,000$ Cultural Arts Center 15,321,035 Total Planned Facilities 32,921,035$ Sources: City of Dublin Capital Improvement Program 2022-2027. Cost Allocation Existing Level of Service Per the nexus study requirements that went into effect of January 1, 2022, a nexus study “shall identify the existing level of service for each public facility, identify the proposed new lev el of DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 35 service, and include an explanation of why the new level of service is appropriate.” Table 6.4 expresses the City’s current community recreation facilities level of service in terms of an existing cost per capita. This cost per capita is not used in the fee calculation, rather it is shown here for informational purposes only. Once the planned facilities have been constructed and new development has increased the City’s service population the resulting facility cost per capita will be lower than the cost per capita shown in Table 6.4. Calculation Value of Existing Facilities A 71,042,557$ Existing Fund Balance B (2,016,678) Value of Existing Facilities C = A + B 69,025,879$ Existing Service Population D 68,819 Cost per Capita E = C / D 1,003$ Facility Standard per Resident F 1,003$ Facility Standard per Worker1 G = F x 0.05 50 1 Based on a weighing factor of 0.05. Table 6.4: Community Recreation Facilities Existing Standard Sources: Tables 6.1 and 6.2; Willdan Financial Services. Future Level of Service Table 6.5 shows the calculation of the system standard per capita for community recreation facilities. The planned facilities will serve both existing and new development, so the costs of the planned facilities are allocated to both existing and new development using this methodology. This cost standard is calculated by dividing the total value of all community recreation facilities in 2040 by the total service population in 2040. The value per capita is multiplied by the worker weighting factor of 0.05 to determine the value per worker. The resulting standard is the cost standard that will be achieved when all the facilities are realized, and new development has come online. This new level of service is appropriate because it is the level of service resulting from the buildout of the City’s planned community recreation facilities. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 36 Calculation Value of Existing Facilities A 71,042,557$ Value of Planned Facilities B 32,921,035 Total Value of Facilities at 2040 C = A + B 103,963,592$ Future Service Population D 83,264 Cost per Capita E = C / D 1,249$ Facility Standard per Resident E 1,249$ Facility Standard per Worker1 F = E x 0.05 62 1 Based on a weighing factor of 0.05. Sources: Tables 6.1 and 6.2; Willdan Financial Services. Table 6.5: Community Recreation Facilities System Plan Standard Projected Fee Revenue Table 6.6 projects community recreation center fee revenue by multiplying the cost per capita from Table 6.4 by the increase in service population. The fee will generate $18 million through the planning horizon. After accounting for the negative existing fund balance, non-fee funding sources will have to fund $16.9 million worth of the planned facilities. Calculation Cost per Capita A 1,249$ Growth in Service Population (2022 - 2040)B 14,445 Projected Fee Revenue C = A x B 18,041,805$ Total Project Cost D 32,921,035$ Less Projected Fee Revenue C 18,041,805 Negative Fund Balance E (2,016,678) Non-Fee Funding Required F = D - C - E 16,895,908$ Sources: Tables 6.1 and 6.5. Table 6.6: Revenue Projection - Community Recreation Facilities - System Standard Fee Schedule Table 6.7 shows the maximum justified community recreation facilities fee schedule. The cost per capita from Table 6.5 is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 37 Table 6.7: Community Recreation Facilities Fee - System Standard A B C = A x B D = C x 0.01 E = C + D E / Average Cost Per Base Admin Fee per Land Use Capita Density Fee 1 Charge 2 Total Fee 1 Sq. Ft.3 Residential Dwelling Unit 1,249$ 2.70 3,372$ 34$ 3,406$ 2.12$ Nonresidential Commercial 62$ 2.12 131$ 1$ 132$ 0.13$ Office 62 3.26 202 2 204 0.20 Industrial 62 1.16 72 1 73 0.07 Senior Service Facility 62 0.95 59 1 60 0.06 1 Fee per average sized dwelling unit (residential) or per 1,000 square feet (nonresidential). Sources: Tables 2.2 and 6.5; Willdan Financial Services 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. 3 Assumes average dwelling unit is 1,603 square feet based on an analysis of building permits issued between 7- 1-2021 and 6-30-2022. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A 38 7. Aquatic Facilities 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 system standard of aquatic facilities per capita. Service Population Aquatic 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. That analysis relied on survey data of nonresidential facilities use in nearby Pleasanton. Since Dublin and Pleasanton are adjacent suburban cities in the East Bay, it is reasonable to assume that worker demand for these types of facilities from Pleasanton is similar to worker demand in Dublin. Table 7.1: Aquatic Facilities Service Population A B A x B = C Persons Weighting Factor Service Population Residents Existing (2023)67,734 1.00 67,734 New Development (2023-2040)13,974 1.00 13,974 Total (2040)81,708 81,708 Workers Existing (2023)21,702 0.05 1,085 New Development (2023-2040)9,413 0.05 471 Total (2040)31,115 1,556 Combined Existing (2023)68,819 New Development (2023-2040)14,445 Total (2040)83,264 1 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: Public Facilities Fee Study, 1998 Update, Hausrath Economics Group; City of Dublin; Table 2.1, Willdan Financial Services. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 39 Facility Inventories & Standards Table 7.2 shows the inventory of existing aquatic facilities. The value of the existing aquatic facilities, approximately $487 per square foot, is based on a cost estimate for the Emerald Glen Recreation & Aquatic Complex. Note that the costs only include the pool facilities themselves; buildings and site work are included in the community recreation facilities fee. Table 7.2: Existing Aquatic Facilities Surface Area Cost per Square Foot1 Total Cost Facilities Emerald Glen Indoor Pool 6,270 3,053,225$ Emerald Glen Competitive Pool 6,174 3,006,477 Emerald Glen Play Pool 4,538 2,209,814 Total Value 16,982 487$ 8,269,515$ 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 Allocation Existing Level of Service Per the nexus study requirements that went into effect of January 1, 2022, a nexus study “shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.” Table 6.4 expresses the City’s current aquatic facilities level of service in terms of an existing cost per capita. This cost per capita is not used in the fee calculation, rather it is shown here for informational purposes only. Once the planned facilities have been constructed and new development has increased the City’s service population the resulting facility cost per capita will be lower than the cost per capita shown in Table 7.3. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 40 Table 7.3: Aquatic Facilities Existing Standard Calculation Value of Existing Facilities A 8,269,515$ Existing Service Population B 68,819 Cost per Capita C = A / B 120$ Facility Standard per Resident C 120$ Facility Standard per Worker1 D = C x 0.05 - 1 Based on a weighing factor of 0.05. Sources: Tables 7.1 and 7.2; Willdan Financial Services. Future Level of Service Table 7.4 shows the calculation of the system standard per capita for aquatic facilities. The planned facilities will serve both existing and new development, so the costs of the planned facilities are allocated to both existing and new development using this methodology. This cost standard is calculated by dividing the total value of all aquatic facilities in 2040 by the total service population in 2040. The value per capita is multiplied by the worker weighting factor of 0.05 to determine the value per worker. The resulting standard is the cost standard that will be achieved when all the facilities are realized, and new development has come online. This new level of service is appropriate because it is the level of service resulting from the buildout of the City’s planned aquatic facilities. Table 7.4: Aquatic Facilities System Standard Calculation Value of Existing Facilities A 8,269,515$ Future Service Population B 83,264 Cost per Capita C = A / B 99$ Facility Standard per Resident C 99$ Facility Standard per Worker1 D = C x 0.05 5 1 Based on a weighing factor of 0.05. Sources: Tables 7.1 and 7.2; Willdan Financial Services. Projected Fee Revenue Table 7.5 projects aquatic facilities fee revenue by multiplying the cost per capita from Table 7.3 by the increase in service population. The fee will generate $1.4 million through the planning horizon. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 41 Calculation Cost per Capita A 99$ Growth in Service Population (2023 - 2040)B 14,445 Projected Fee Revenue C = A x B 1,430,100$ Sources: Tables 7.1, and 7.3. Table 7.5: Revenue Projection - Aquatic Facilities Fee Schedule Table 7.6 shows the maximum justified aquatic facilities fee schedule. The cost per capita from Table 7.5 is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit. Table 7.6: Aquatic Facilities - System Standard A B C = A x B D = C x 0.01 E = C + D E / 1,000 Cost Per Base Admin Fee per Land Use Capita Density Fee 1 Charge 2 Total Fee 1 Sq. Ft. Residential Dwelling Unit 99$ 2.70 267$ 3$ 270$ 0.17$ Nonresidential Commercial 5$ 2.12 11$ -$ 11$ 0.01$ Office 5 3.26 16 - 16 0.02 Industrial 5 1.16 6 - 6 0.01 Senior Service Facility 5 0.95 5 - 5 0.01 1 Fee per average sized dwelling unit (residential) or per 1,000 square feet (nonresidential). Sources: Tables 2.2 and 7.4; Willdan Financial Services 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. 3 Assumes average dwelling unit is 1,603 square feet based on an analysis of building permits issued between 7- 1-2021 and 6-30-2022. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A 42 8. AB 602 Requirements On January 1, 2022, new requirements went into effect for California jurisdictions implementing impact fees. Among other changes, AB 602 added Section 66016.5 to the Government Code, which set guidelines for impact fee nexus studies. Four key requirements from that section which concern the nexus study are reproduced here: 66016.5. (a) (2) When applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate. 66016.5. (a) (4) If a nexus study supports t he increase of an existing fee, the local agency shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee. 66016.5. (a) (5) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A local agency that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development. 66016.5. (a) (6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study. Compliance with AB 602 The following sections describe this study’s compliance with the requirements of AB 602. 66016.5. (a) (2) - Level of Service 1. For fees calculated under the planned facilities methodology, the fees are calculated to support a level of service that is lo wer than the existing level of service. This is because the City-identified planned facilities represent a lower level of service than the existing level of service in the City. The fees calculated under this approach are the civic center facilities fees, library facilities fees, and park facilities fees. 2. For the community recreation facilities fees calculated under the system standard methodology, the maximum justified fees represent an increase in the facility level of service. The increased level of service is required to fund new development’s fair share of facilities identified in the City’s CIP. For the aquatic facilities fees calculated under the system standard, the fees represent a lower level of service than currently exists. New development will fund its proportional share of the planned facilities. 66016.5. (a) (4) – Review of Original Fee Assumptions Willdan reviewed the City’s 2017 Public Facilities Fee Study Update and with input from City staff determined that the analysis should be revised. The primary reason for the update is to account for increased facilities costs since 2017, and to adjust the land use assumptions which now accommodate more housing than was previously assumed, due to the City’s increase Regional Housing Needs Allocation (RHNA). Table 8.1 displays an accounting of fee revenue collected from FY 2017-18 to FY 2022-23. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 43 Table 8.1: Fee Revenue History FY2017-18 to FY2022-23 Fund No.Description 6/30/2018 Year-To-Date Actual 6/30/2019 Year-To-Date Actual 6/30/2020 Year-To-Date Actual 6/30/2021 Year-To-Date Actual 6/30/2022 Year-To-Date Actual 6/30/2023 Year-To-Date Actual Fund 4101 Community Park Land 46100 Interest 152,508$ 207,358$ 188,916$ 119,544$ 104,100$ 104,804$ 49100 Developer Contributions 613,261 1,243,891 1,151,962 (870,169) 2,794,353 18,973 Total Community Park Land 765,770$ 1,451,249$ 1,340,879$ (750,624)$ 2,898,453$ 123,777$ Fund 4102 Neighborhood Park Land 46100 Interest 134,292$ 180,641$ 180,029$ 127,136$ 113,607$ 110,843$ 49100 Developer Contributions 627,151 350,094 508,654 (391,837) 1,215,961 1,139 Total Neighborhood Park Land 761,443$ 530,736$ 688,683$ (264,702)$ 1,329,568$ 111,982$ Fund 4103 Community Park Improvements 49131 Miscellaneous Revenue 25,468$ -$ -$ -$ -$ -$ 49100 Developer Contributions 3,256,194 1,261,672 960,441 443,365 1,582,338 11,468 49900 Transfer In 4,396 - - - - - Total Community Park Improvements 3,286,058$ 1,261,672$ 960,441$ 443,365$ 1,582,338$ 11,468$ Fund 4104 Neighborhood Park Improvements 46100 Interest 58,691$ 88,614$ 96,586$ 72,193$ 61,426$ 58,438$ 49100 Developer Contributions 1,581,803 685,261 554,118 243,428 894,236 17,424 Total Neighborhood Park Improvements 1,640,494$ 773,875$ 650,704$ 315,621$ 955,662$ 75,862$ Fund 4105 Community Buildings 46100 Interest -$ -$ -$ 5,098$ 6,222$ 8,090$ 49100 Developer Contributions 3,321,333 2,136,137 1,012,150 1,043,282 2,031,442 920,785 49900 Transfer In 91,619 - - - - Total Community Buildings 3,412,952$ 2,136,137$ 1,012,150$ 1,048,380$ 2,037,664$ 928,875$ Fund 4106 Library 46100 Interest 11,588$ 21,076$ 22,675$ 16,724$ 14,617$ 14,397$ 49100 Developer Contributions 377,453 158,691 73,415 76,536 149,567 68,127 Total Library 389,041$ 179,767$ 96,090$ 93,260$ 164,183$ 82,524$ Fund 4107 Civic Center 46100 Interest 59,777$ 100,206$ 105,372$ 75,597$ 64,034$ 61,359$ 49100 Developer Contributions 986,194 447,172 317,920 149,100 527,598 4,897 Total Civic Center 1,045,971$ 547,378$ 423,292$ 224,696$ 591,633$ 66,256$ Fund 4108 Aquatic Center 49100 Developer Contributions 334,058$ 191,934$ 90,961$ 93,741$ 182,268$ 84,146$ 49900 Transfer In 11,541 - - - - Total Aquatic Center 345,599$ 191,934$ 90,961$ 93,741$ 182,268$ 84,146$ Fund 4110 Community Nature Park Land 46100 Interest 4,036$ 1,546$ 124$ 85$ 71$ 68$ 49100 Developer Contributions 172,699 5,266 - - - - Total Community Nature Park Land 176,735$ 6,812$ 124$ 85$ 71$ 68$ Fund 4111 Community Nature Park Improvements 46100 Interest 18,392$ 28,994$ 29,643$ 20,944$ 17,476$ 14,955$ 49100 Developer Contributions 295,041 74,436 60,821 28,033 100,208 714 Total Community Nature Park Improvements 313,433$ 103,430$ 90,464$ 48,976$ 117,684$ 15,669$ Source: City of Dublin. 66016.5. (a) (5) – Residential Fees per Square Foot Impact fees for residential land uses are calculated per square foot and comply with AB 602. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 44 66016.5. (a) (6) – Capital Improvement Plan The Capital Improvement Plan for this nexus study is comprised of the identified planned facilities within each facility fee chapter. Planned facilities identified in this document are sourced from the City’s current adopted CIP and other planning documents. Adoption of this nexus study would approve the planned facilities identified herein as the Capital Improvement Plan for this nexus study. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A 45 9. 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 (BCI)  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 development 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 DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 46 cost of facilities varies from the total cost used as a basis for the fees, the City should consider revising the fees accordingly. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A A-47 10. Mitigation Fee Act Findings 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 development. 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 facilities. 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 betwe en the use of fee revenue and the new development residential and non-residential use classifications that will pay the fees. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A City of Dublin Public Facilities Fee Update 48 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). 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 developme nt 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 development 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, Development Forecast provides a description of how service population and development 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 amo unt 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 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, Development Forecast 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. DocuSign Envelope ID: FCFB3EDB-D7B3-4BFD-8D90-A52289064A9A