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HomeMy Public PortalAbout2020-06-09 Item 10CITY COUNCILAGENDA REPORTIT//.'^^RCITY OF MILLBRAE621 Magnolia AvenueMillbrae, CA 94030SUBJECT: Resolution Adopting Development ImpactFees for General Government Facilities, RecreationFacilities, Public Safety, Park Acquisition and Facilities,and Mobility InfrastmctureATTACHMENTS:(1) Resolution(2) Development Impact Fee Program Report(3) May 26, 2020 Staff Report on Impact Fee OrdinanceReport No. kt\^For Agenda of: June 9, 2020Department: Community DevelopmentOriginator: . Khp^ LimBudget ActionYes:No: XFinance Review:-^vREPORT TYPE: ACTION ^_ INFORMATIONALITEM TYPE: CONSENT_PUBLIC HEARING X EXISTING BUSINESS NEW BUSINESSRECOMMENDATION:Staff recommends that the City Council:1. Hold a public hearing on the proposed impact fees.2. Adopt a resolution imposing citywide development impact fees for general government facilities,recreation facilities, public safety, park acquisition and facilities, and mobility infrastructure.BACKGROUND:The City provides a variety of services and amenities to its residents, businesses, and visitors, such aslibrary, public safety, utilities, bicycle and pedestrian infrastructure and recreation facilities. Newresidential and non-residential development increases the demand for the services and amenities that theCity provides, burdening existing facilities and infrastructure.The City has the authority to adopt fees to ensure that new development pays for its share of thefacilities and infrastructure necessary to provide services to that development, subject to the restrictionsset forth in the Mitigation Fee Act (GOV. Code §§ 66000 et seq.). These fees, known as impact fees, areone-time funds available to fund new development's share of the capital costs of the services for whichthey were imposed. Impact fee revenue is not available to fund operating costs or existing servicedeficits. The JVtitigation Fee Act requires that the City make a series of findings regarding therelationship between the new development and the fees imposed, and that the amount of the fee isproportionate to the impact caused by the new development. The Mitigation Fee Act also imposes aseries of accounting and reporting requirements on the City. Cities typically prepare a study todocument the justification for their fees and support the statutorily findings required by the MitigationFee Act.Page 1 of 316596260.1 On February 28, 2017, the City Council adopted development impact fees for the Millbrae Station AreaSpecific Plan (MSASP) area. However, the City Council has not adopted similar fees for areas outsideoftheMSASParea.On November 13, 2018, the City awarded a professional services agreement to Harris & Associates, Inc.(Harris) to prepare a study to support a comprehensive set ofcitywide development impact fees. Harrishas completed the Development Impact Fee Program report (Fee Study) analyzing the impacts of newdevelopment on library, government, recreation, public safety, parks, water facilities and mobilityinfrastructure.On May 26, 2020, staff introduced a new ordinance adding Article XXXI, "Development Impact Fees,"to Title 10 Chapter 10.5 of the Millbrae Municipal Code. The City Council waived the first reading,conducted and closed a Public Hearing and received several public comments. The second reading andadoption of the ordinance is on the Council's June 9, 2020 consent calendar. The proposed ordinanceestablishes a framework for administration of impact fees consistent with the Mitigation Fee Act. Theordinance sets out a protocol for adopting impact fees, details when the fees will be paid, establishesexemptions and credits, implements procedures for appeals and refunds, and provides for reporting andaccounting procedures. The ordinance does not impose any fees.ANALYSIS:The City Council may adopt fees by resolution. The proposed program consists of the following sixcomponents: a library fee, a general government facilities fee, a recreation facilities fee, a public safetyfee, a park acquisition and facilities fee, and a mobility infrastructure fee. A 5% administration fee willbe added to the total impact fees to cover legal, accounting, and other administration support as welladministration cost including revenue collection, revenue and cost accounting, mandated publicreporting, and fee justification analysis.The Council discussed the proposed resolution at its May 26, 2020 meeting. Based on the Council'sfeedback, has added language clarifying that project applicants may apply for credits against therecreation facilities fee for recreation facilities provided in a project, and credits against the parkacquisition fee and facilities fee for open space provided in a project.The fees will be imposed on all future developments to pay for their fair share of capital expansion and/orimprovement. The total impact fees are as follows:Page 2 of 316596260.1 Laud UseUbrai7FacilitiesGeneralGowruineufFacilitiesRecreationSei'McesPublic Safeh-ParksMobilih- Atbmuistrafiou' TotalResidentialSiiigle FaiiBlyMultifaiiiilyNon-ResidentialConuiercialOfficeIiidustiialHotel$217160$6915215$30$1,061782$33974574$149I Fee uer Divellin a Uiiti$2.913 $1,159 $54,3952,146 854 40.081fFee per 1.000 Biii'idim Saiiare Feet)$9119920$40$37081381n/ajl.'nH/t7(Fee per Roow$163 n/a$1,8751,061$7,2152,1781,193$1,136$3.0812,254$40420469$76S64.70147.338$8.4884,2911,452Sl,594AfJmmisn'ative chwge of 5°/ofor (1) legal, accounting. and other admimstrafh}e svpport and (2) DevelopTn ent impact fee. pjv gram aefMmTSfrafi-ot! costs mchicfwgrevemie coUection, re\'enue and cost accoimtmg, inandated pitbhc repoj-img, an(S fee juslifs.calion anatysis.The proposed fees would take effect 60 days after the adoption of the resolution, and would beincorporated into the City's Fee & Service Charge Schedule. Each fee will automatically adjust onJanuary 1 of each year after the enactment of each fee in accordance with the change in the EngineeringConstruction Cost Index, as most recently published by Engineer News Record, for the previouscalendar year.FISCAL IMPACT:The estimated revenue from the proposed fees through 2040 is as follows:FEEAMOUNTLibrary Facilities$576,056General Government Facilities$2,817,807Recreation Facilities$6,185,875Public Safety$3,076,859Park Acquisition$112,418,961Mobility Infrastructure$23,783,254Administration$7,442,941Total$156,301,753Fees amount of revenue may vary based on the actual pace of development and any credits granted toprojects.COUNCIL ACTION:1. Hold a public hearing on the proposed impact fees.2. Adopt a resolution imposing citywide development impact fees for general government facilities,recreation facilities, public safety, park acquisition and facilities, and mobility infrastructure.Page 3 of 316596260.1 CITY OF MILLBRAE,COUNTY OF SAN MATEOSTATE OF CALIFORNIA***RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILLBRAEADOPTING DEVELOPMENT IMPACT FEESWHEREAS, the City ofMillbrae ("City") provides a variety of services andamenities to its residents, businesses, and visitors, such as libraries, bicycle and pedestrianinfrastructure, and recreational facilities; andWHEREAS, new residential and nonresidential development increases the demand forthe services and amenities that the City provides, burdening existing facilities and infrastructure;andWHEREAS, Article XXXI of Chapter 10.05 of the Millbrae Municipal Code authorizesthe City to impose fees on new development to finance the capital costs of new development'sfair share of the new library, government, recreation, public safety, and parks facilities andinfrastructure necessary to accommodate that new development subject to the Mitigation Fee Act(GOV. Code §§ 66000 et seq.); andWHEREAS, the City has commissioned a Development Impact Fee Program report ("FeeStudy"), attached hereto as Exhibit A and incorporated by reference, analyzing the impacts of newdevelopment on library, government, recreation, public safety, and parks facilities andinfrastructure; andWHEREAS, the City has prepared a Development Impact Fee Schedule, attached heretoas Exhibit B and incorporated by reference, based on the Fee Study.NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITYOF MILLBRAE as follows:Section 1. Library Fee;A. Findings. The City Council finds as follows:i. Purpose of Fee. The purpose of the Library Fee is to fund new library facilities orimprovements to existing library facilities to maintain the City's existing level of service.ii. Use of Fee. The Library Fee will be used to fund new library facilities, or improvementsto existing library facilities, to maintain the existing level of service the City provides.iii. Relationship Between the Fee's Use and the Type of Development Project. As furtherdetailed in the Fee Study, new residential and nonresidential development will bring additionalresidents, workers, and visitors to the City, increasing the demand on existing library facilities.The Library Fee will generate revenue to fund new library facilities or improvements to existinglibrary facilities to maintain the City's existing level of service.16494287.3 iv. Relationship Between the Need for the Public Facility and the Type of DevelopmentProject. As further detailed in the Fee Study, an increase in residential and non-residentialdevelopment generates additional residents and workers that increase the need for library facilitiesto maintain the City's existing level of service.v. Relationship Between the Amount of the Fee And The Cost of the Public Facility. Asfurther detailed in the Fee Study, the Library Fee is based on the cost per capita of the library assetsnecessary to provide the current level of service.B. Fee Imposed.Development impact fees are established and imposed on the issuance of all building permits fordevelopment within the City to finance the cost of additional library facilities necessary to mitigatethe impacts upon existing library facilities caused by new development in the City in the amountstated in Exhibit B.Section 2. General Government Facilities Fee:A. Findings. The City Council finds as follows:i. Purpose of Fee. The purpose of the General Government Facilities Fee is to fund newgeneral government facilities or improvements to existing general goveriiment facilities notcovered by other impact fees to maintain the City's existing level of service.ii. Use of Fee. The General Govermnent Facilities Fee will be used to fund new generalgovernment facilities, or improvements to existing general government facilities not covered byother impact fees, to maintain the existing level of service the City provides.ill. Relationship Between the Fee's Use and the Type of Development Project. As furtherdetailed in the Fee Study, new residential and nonresidential development will bring additionalresidents, workers, and visitors to the City, increasing the demand on existing general governmentfacilities. The General Government Facilities Fee will generate revenue to fund new generalgovernment facilities or improvements to existing general government facilities not covered byother impact fees to maintain the City's existing level of service.iv. Relationship Between the Need for the Public Facility and the Type of DevelopmentProject. As further detailed in the Fee Study, an increase in residential and non-residentialdevelopment generates additional residents and workers that increase the need for generalgovernment facilities to maintain the City's existing level of service.v. Relationship Between the Amount of the Fee And The Cost of the Public Facility. Asfurther detailed in the Fee Study, the General Government Facilities Fee is based on the cost percapita of the general government assets not covered by other impact fees necessary to provide thecurrent level of service.16494287.3 B. Fee Imposed.Development impact fees are established and imposed on the issuance of all building pennits fordevelopment within the City to finance the cost of additional general goveriunent facilitiesnecessary to mitigate the impacts upon existing general government facilities caused by newdevelopment in the City in the amount stated in Exhibit B.Section 3. Recreation Facilities Fee:A. Findings. The City Council finds as follows:i. Purpose of Fee. The purpose of the Recreation Facilities Fee is to fund new development'sshare of planned new recreation facilities or improvements to existing recreation facilities.ii. Use of Fee. The Recreation Facilities Fee will be used to fund new development's share ofplanned new recreation facilities or improvements to existing recreation facilities as furtherdescribed in the Fee Study.iii. Relationship Between the Fee's Use and the Type of Development Project. As furtherdetailed in the Fee Study, new residential and nonresidential development will bring additionalresidents, workers, and visitors to the City, increasing the demand on existing recreation facilities.The Recreation Facilities Fee will generate revenue to fund new development's share of plannednew recreation facilities or improvements to existing recreation facilities.iv. Relationship Between the Need for the Public Facility and the Type of DevelopmentProject. As further detailed in the Fee Study, an increase in residential and non-residentialdevelopment generates additional residents and workers that increase the need for recreationfacilities.v. Relationship Between the Amount of the Fee And The Cost of the Public Facility. Asfurther detailed in the Fee Study, the Recreation Facilities Fee is based on the cost per servicepopulation of planned new recreation facilities or improvements to existing recreation facilities.B. Fee Imposed.Development impact fees are established and imposed on the issuance of all building permits fordevelopment within the City to finance the cost of additional recreation services facilitiesnecessary to mitigate the impacts upon existing recreation services facilities caused by newdevelopment in the City in the amount stated in Exhibit B.Section 4. Public Safety Fee:A. Findings. The City Council finds as follows:i. Purpose of Fee. The purpose of the Public Safety Fee is to fund new public safety facilitiesor improvements to existing public safety facilities to maintain the City's existing level of service.16494287.3 ii. Use of Fee. The Public Safety Fee will be used to fund new public safety facilities, orimprovements to existing public safety facilities, to maintain the existing level of service the Cityprovides.iii. Relationship Between the Fee's Use and the Type of Development Project. As furtherdetailed in the Fee Study, new residential and nonresidential development will bring additionalresidents, workers, and visitors to the City, increasing the demand on existing public safetyfacilities. The Public Safety Fee will generate revenue to fund new public safety facilities orimprovements to existing public safety facilities to maintain the City's existing level of service.iv. Relationship Between the Need for the Public Facility and the Type of DevelopmentProject. As further detailed in the Fee Study, an increase in residential and non-residentialdevelopment generates additional residents and workers that increase the need for public safetyfacilities to maintain the City's existing level of service.v. Relationship Between the Amount of the Fee And The Cost of the Public Facility. Asfurther detailed in the Fee Study, the Public Safety Fee is based on the cost per capita of the publicsafety assets necessary to provide the current level of service.B. Fee Imposed.i. Development impact fees are established and imposed on the issuance of all buildingpermits for development within the City to finance the cost of additional public safety facilitiesnecessary to mitigate the impacts upon existing public safety facilities caused by new developmentin the City in the amount stated in Exhibit B.ii. Applicants are entitled to a credit against the fees imposed under this section in an amountequal to the public safety component of the MSASP impact fees paid for the same project pursuantto Section 10.05.1825. Notwithstanding the foregoing, the amount of the credit may not exceedthe amount of the fees imposed pursuant to this section.iii. Applicants may apply for a credit against fees imposed under this section for recreationalfacilities in a project pursuant to Section 10.05.3145 of the Municipal Code. Recreational facilitiesmust be open to either the public at large or all residents of the project to qualify for the credit.The community development director or designee may issue further guidance as to criteria toqualify for the credit.Section 5. Park Acquisition and Facilities Fee:A. Findings. The City Council finds as follows:i. Purpose of Fee. The purpose of the Park Acquisition and Facilities Fee is to fund parkacquisition and new park facilities or improvements to existing park facilities to maintain theCity's existing level of service.ii. Use of Fee. The Park Acquisition and Facilities Fee will be used to fund acquisition ofnew parks and park facilities, or improvements to existing park facilities to maintain the existinglevel of service the City provides.16494287.3 iii. Relationship Between the Fee's Use and the Type of Development Project. As furtherdetailed in the Fee Study, new residential and nonresidential development will bring additionalresidents, workers, and visitors to the City, increasing the demand on existing park facilities. ThePark Acquisition and Facilities Fee will generate revenue to fund acquisition of parks and newpark facilities or improvements to existing park facilities to maintain the City's existing level ofservice.iv. Relationship Between the Need for the Public Facility and the Type of DevelopmentProject. As further detailed in the Fee Study, an increase in residential and non-residentialdevelopment generates additional residents and workers that increase the need for park facilitiesto maintain the City's existing level of service.v. Relationship Between the Amount of the Fee And The Cost of the Public Facility. Asfurther detailed in the Fee Study, the Public Safety Fee is based on the cost per capita of the parkassets necessary to provide the current level of service.B. Fee Imposed.i. Development impact fees are established and imposed on the issuance of all buildingpermits for development within the City to finance the cost of additional park facilities necessaryto mitigate the impacts upon existing park facilities caused by new development in the City in theamount stated in Exhibit B.ii. Applicants are entitled to a credit against the fees imposed under this section in an amountequal to the parkland component of the MSASP impact fees paid pursuant to Section 10.05.1825and fees paid pursuant to Section 10.20.020 of the Municipal Code. Notwithstanding theforegoing, the amount of the credit may not exceed the amount of the fees imposed pursuant tothis section.iii. Applicants may apply for a credit against fees imposed under this section for open spacein a project pursuant to Section 10.05.3145 of the Municipal Code. Open space must be open toeither the public at large or all residents of the project to qualify for the credit. The communitydevelopment director or designee may issue further guidance as to criteria to qualify for the credit.Section 6. Mobility Infrastructure Fee:A. Findings. The City Council finds as follows:i. Purpose of Fee. The purpose of the Mobility Infrastructure Fee is to fund newdevelopment's share of planned mobility improvements.ii. Use of Fee. The Mobility Infrastructure Fee will be used to fund new development's shareof the planned mobility improvements as further detailed in the Fee Study.iii. Relationship Between the Fee's Use and the Type of Development Project. As furtherdetailed in the Fee Study, new residential and nonresidential development will bring additionalresidents, workers, and visitors to the City, increasing the demand on existing mobility facilities.1M94287.3 The Mobility Infrastructure Fee will generate revenue to fund the new mobility facilities orimprovements to existing mobility facilities detailed in the Fee Study.iv. Relationship Between the Need for the Public Facility and the Type of DevelopmentProject. As further detailed in the Fee Study, an increase in residential and non-residentialdevelopment generates additional residents and workers that increase the need for mobilityfacilities to maintain the City's existing level of service.v. Relationship Between the Amount of the Fee And The Cost of the Public Facility. Asfurther detailed in the Fee Study, the Mobility Infrastructure Fee is based on new development'sshare of the planned mobility improvements stated in the Fee Study as determined by the tripgeneration rate of the new development.B. Fees Imposed.i. Development impact fees are established and imposed on the issuance of all buildingpermits for development within the City to finance the cost of additional mobility facilitiesnecessary to mitigate the impacts upon existing mobility facilities caused by new development inthe City in the amount stated in Exhibit B.ii. Applicants are entitled to a credit against the fees imposed under this section in an amountequal to the traffic improvement component of the MSASP impact fees paid pursuant to Section10.05.1825. Notwithstanding the foregoing, the amount of the credit may not exceed the amountof the fees imposed pursuant to this section.iii. Projects within one half mile of a transit stop are eligible for a reduction of their impactfees in accordance with California Government Code Section 66005.1, as determined by thedirector of community development.Section 7. Administration:The fees imposed pursuant to this Resolution are subject to the requirements set forth in ArticleXXXI of Chapter 10.05 of the Millbrae Municipal Code (Sec. 10.05.3100 et seq.). Pursuant toSection 10.05.3120, each fee will automatically adjust on January 1 of each year after theenactment of each fee in accordance with the change in the Engineering Construction Cost Index,as most recently published by Engineer News Record, for the previous calendar year.Section 8. Severability:Each component of this Resolution are severable. Should any individual component of the fee orother provision of this Resolution be adjudged to be invalid and unenforceable, the remainingprovisions shall be and continue to be fully effective, and the fee shall be fully effective except asto that portion that has been judged to be invalid.Section 9. Exemption from California Environmental Quality Act (CEQA):The City Council finds that CEQA does not apply to the adoption of this Resolution, pursuant toSections 15061 and 15273 of the State CEQA Guidelines because:16494287.3 A. The fees established by this Resolution will be collected for the purposes of obtaining funds forcapital projects necessary to maintain the current levels of service within existing service areas toserve new development.B. To the extent that any fees authorized by this Resolution will be used to fund new facilities, theconstmction of those facilities will not take place until there has been CEQA review of thedevelopment projects which will pay the fees, and the construction of each public facility will besubject to CEQA review. Therefore, it can be seen with certainty that the adoption of thisResolution establishing these fees will not have a significant effect on the environment.Section 10. Implementation:The City Manager, or his designee, is authorized to take all actions necessary and proper toimplement this Resolution.Section 11. Effective Date of Revised Fees:The fees provided in this Resolution shall be effective on(60) days after the adoption of this Resolution.REGULARLY PASSED AND ADOPTED thisthday of, 2020, which is at least sixty_,2020.MayorATTEST:City Clerk16494287.3 EXHIBIT ADevelopment Impact Fee Program Report16494287.3 EXHIBIT BDevelopment Impact Fee ScheduleLandlscUlx-aryFacilitiesGeuer.ilGowruinentFarilitiesRecreatlouSenlresPiiMic Ssifeh ParksM»Mllt> AAniiustratiou' TotdSmgle FamilyMiiltitailiilyA'o;,' -Res'ide!.1 tia iCouuieicialOfBceLidustiialHotel$217160$6915215$30$1.061782$33974574$149(Fee i}erD^\~e!h'n? Uain$2.913 $1.159 $54.395 SI-8752.146 854 40.081 1-061/Fee uer i.000 Buildiiw Sniiare Fee.tl$9119920MO$37081381n/ail/Qn/a(Fee RetRoomiS163 ti/aS7J152.1781-193S1.136$3.0812^54$40420469$76$fr4-70147.338S8.41J84.2911.452$1.594A<lmwistrativechargeof5°ofor(l) I'egai, accoutirmg, and other admmisiraiive support and (2) Development mipacf fee prognim adftiinisrj-anon costs mchfc/Mgrevenifc collecnon, re\wm£ anii cos! accounting. manfSaied piibltc reportwg, a^dfeejiistififatwn anafysis.16494287.3 ?NN»s.t'Wfh•Wf*>.K:*•^t»<<—s^uws'-ai'4.y^J^^K.fr"r,«»^.1••-Sl*4^•i*.i^.r^&^.».a^^.r^y.•A:A-^;^^».e.«a.^-^»»si.^A:I*A.i^«.iHffiSffl^e?1ffi..<*s-fe6•Kti.K-»^-»fe4;^n?!^-^n^J••-i1.^»•*—t&>>3'<ia»^•^»^'s;'s'Development Impact Fee ProgramCity of MillbraeMay 2020Prepared for:fMILLBRAEPrepared by:Ham's & Associates1401 Willow Pass Road, Suite 500Concord, Ca 94520(925) 827-4900 This page intentionally left blank.Development Impact Fee Nexus StudiesCityofMillbraeApril 2020 Table of ContentsEXECUTIVE SUMMARY.Section 1 Requirements and Methodology...Nexus Requirement SummaryMethodologyTiming of Fee Payment.Fee Adjustment ProceduresCredits and Reimbursement Policies,Specialized Development Projects.Accessory Dwelling UnitsSection 2 Population Assumptions.Growth ForecastsLand Use TypesService PopulationResident and Employment Density2040 Land Use ProjectionSections Library Fee...BackgroundService PopulationCost StandardFee ScheduleRevenue ProjectionsNexus Findings - Library Fee.Section 4 General Government Facilities.............................BackgroundService PopulationCost StandardFee ScheduleRevenue ProjectionsNexus Findings - General Government facilities Fee.Section 5 Recreation Services Fee ....BackgroundService PopulationCost StandardFee ScheduleRevenue Projections............1..5..5.5.6.6.7.7.8f»»»l*l»»»».9.9.10.10.11........14.14.14.14.15.15.16.........18.18.18.18.20.20.21........23.23..23.....23..26.26Development Impact Fee Nexus StudyCity of MillbraeApril 2020 Nexus Findings - Recreation Services Fee .................................................................27Section 6 Public Safety .........................................................................................................29Background............................................................................................................29Overlap with MSASP..............................................................................................29Service Population ..................................................................................................29Cost Standard.........................................................................................................29Fee Schedule..........................................................................................................30Revenue Projections................................................................................................31Nexus Findings - Public Safety Fee ..........................................................................32Section 7 Park Acquisition and Facilities Fee.........................................................................34Background............................................................................................................ 34Overlap with MSASP..............................................................................................34Service Population ..................................................................................................34Cost Standard.........................................................................................................35Fee Schedule..........................................................................................................35Revenue Projections................................................................................................36Nexus Findings - Park Acquisition and Facilities Fee..................................................36Section 8 Mobility Fee..........................................................................................................38Background............................................................................................................38Service Population ..................................................................................................38Overlap with MSASP..............................................................................................38Facilities and Costs..................................................................................................38Fee Schedule..........................................................................................................40Revenue Projections................................................................................................40Nexus Findings-Mobility Fee.................................................................................41Section 9 Implementation and Administration.......................................................................43Implementation.......................................................................................................43Fee Adjustments .....................................................................................................43Impact Fee Program Administrative Requirements......................................................43Programming Revenues with the Capital Improvement Plan.........................................44Fee Reporting.........................................................................................................45Development Impact Fee Nexus StudyCity of MillbraeiiiApril 2020 TablesTable ES.l: Summary of Proposed Impact Fees ................................................................................3Table 1: Service Population Calculation ........................................................................................10Table 2: Persons per Household and Density..................................................................................~\ 1Table 3: 2040 Residential and Non-Residential Development Projections .......................................... 12Table 4: Library Facilities - Total Inventory Value .........................................................................15Table 5: Library Facilities-Fee Schedule .....................................................................................^Table 6: Library Facilities - Estimated Revenue .............................................................................16Table 7: General Government Facilities - Total Inventory Value ......................................................'\9Table 8: General Government Facilities - Fee Schedule ..................................................................20Table 9: General Government Facilities - Estimated Revenue ..........................................................21Table 10: Recreation Services Facilities - Total Inventory Value ......................................................25Table 11: Recreation Services Facilities - Fee Schedule ..................................................................26Table 12: Recreation Services - Estimated Revenue ........................................................................27Table 13: Public Safety Facilities-Total Inventory.........................................................................ZOTable 14: Public Safety-Fee Schedule..........................................................................................^Table 15: Public Safety-Estimated Revenue..................................................................................31Table 16: Park Acquisition and Facilities Fee—Cost Standard.........................................................^Table 17: Park Acquisition and Facilities Fee-Proposed Fee Schedule............................................36Table 18: Park Acquisition and Facilities Fee - Estimated Revenue ..................................................36Table 19: Mobility Fee-Total Project Cost...................................................................................3QTable 20: Mobility Fee - Total Remaining Trips Generated and Fee Schedule....................................40Table 21: Mobility Fee — Estimated Revenue ..................................................................................41Development Impact Fee Nexus StudyCity of MillbraeivApril 2020 This page intentionally left blank.Development Impact Fee Nexus StudyCity of MillbraevApril 2020 EXECUTIVE SUMMARYINTRODUCTIONThe City of Millbrae (City) is located on the San Francisco Peninsula in San Mateo County(County), 15 miles south of the City of San Francisco. The boundaries of the City extend roughlyfrom the Bayshore Freeway/Highway US 101 on the east to Skyline Boulevard on the west. At thetime of the 2010 U.S. Census, the City population was 21,532, up from 20,718 during the 2000U.S. Census. The California Department of Finance (DOF) estimates that as of January 1,2019,Millbrae's population is 23,154. These DOF population estimates incorporate the 2010 censuscounts.The City limits encompass 3.25 square miles and being constrained from further expansion by thecity of San Bruno to the north, the City ofBurlingame to the south, San Andreas Lake and Interstate280 to the west, and San Francisco International Airport to the east. According to the Millbrae2040 General Plan Existing Conditions Report, prepared in August 2016, only 0.2 percent (3.6acres) of land in the City is vacant. The vacant parcels are spread throughout the City. There areseveral underutilized parcels throughout the City as well.According to the Millbrae 2040 General Plan Existing Conditions Report, along El Camino Realand in the downtown, there are several underutilized parcels which are defined as a parcel wherethe built footprint is much less than what the parcel can accommodate per the allowable floor arearatio (FAR). Surface parking lots fronting the street along El Camino Real are consideredunderutilized from the perspective of community character and the potential for improving thevisual appearance and experience. Vacant buildings and underutilized properties have the potentialto be redeveloped. Going forward the City will continue to develop to accommodate residentialpopulation and non-resident employment growth as well as meet the California Regional HousingNeeds Allocation, or RHNA, numbers. As the City grows, given the limited vacant land,development in the City will go vertical and densities will increase over time.As the resident population and non-resident employment in the City increase, there exists acorrelating rise in the demand for public infrastructure and services to support the increaseddemand on the City. California's Assembly Bill 1600 (AB 1600) adopted in 1987 and codified asCalifornia Government Code Section 66000 et. seq., allows the City to impose DevelopmentImpact Fees on new development within the City. Development Impact Fees are a one-time chargeon new development that is collected and used by the City to cover the cost of capital facilities,vehicles, and equipment that are required to serve new growth.The City does not have any current Citywide Development Impact Fees. The purpose of this studyis to establish the City's Development Impact Fee (Fee) program to ensure that new developmentDevelopment Impact Fee Nexus StudyCity of Millbrae1April 2020 pays their fair share of their impact on the City's infrastructure and that the Fees are in compliancewith the legal requirements set out in AB 1600 and relevant case law. The fees discussed in thisreport apply to all future development or redevelopment in the City.NEXUS STUDYPurposeAs development occurs in the City, new backbone infrastructure and capital facilities arerequired to mitigate the increased demand created by new residents and employees. Impact feerevenues fund this impacted backbone infrastructure and capital facilities through the City's Feeprogram, which contains separate fee categories for each type of infrastructure and capitalfacility. Incorporated in this report are nexus studies for the following fee categories, asrequested by the City:LibraryGeneral Government Facilities• Recreation ServicesPublic SafetyParksMobilityThis report is designed to satisfy the AB 1600 Nexus requirements and provide the necessarytechnical analysis to support the adoption of the Fee program. The fee will be effective 60 daysafter the City's final action establishing and authorizing the collection of the fee.ResultsTable ES.l shows a summary of the proposed Fee program. Residential development fees are ona per unit basis, non-residential development fees are on a per 1,000 square feet basis, and hotelfees are shown on a per room basis.••Development Impact Fee Nexus StudyCityofMillbrae2April 2020 Table ES.l: Summary of Proposed Impact FeesLand UseLibraryFacilitiesGeneralGovernmentFacilitiesRecreationServicesPublic Safety Parks Mobility Administration' TotalSingle FamilyMultifamilyNon-ResidentialCommercialOfficeIndustrialHotel(Fee perDwellins Unit)$217160$6915215$30$1,061782$33974574$149$2,9132,146$1,159854$54,39540,081fFee per 1.000 Buildine Square Feet)$9119920$40$37081381n/an/an/'a{Fee per Room)$163 n/a$1,8751,061$7,2152,1781,193$1,136$3,081 $64,7012,254 47,338$40420469$76$8,4884,2911,452$1,594Administrative charge of 3% for (I) legal, accounlmg, and other admmsstrative support and (2) DeveJopment impact fee program admiwstration costs inchdmgrevenue coHectwn, revenue and cost accountmg, mandated pvblic reportmg, and fee justifscation analysis,Development Impact Fee Nexus StudyCity of Millbrae3April 2020 This page intentionally left blank.Development Impact Fee Nexus StudyCity of Millbrae4April 2020 section 1 REQUIREMENTS AND METHODOLOGYNEXUS REQUIREMENT SUMMARYAB 1600, commonly known as the Mitigation Fee Act, was enacted by the state of California in1987 and created Section 66000 et. seq. of the Government Code. AB 1600 requires public agenciesto satisfy the following requirements when establishing, increasing, or imposing a fee as acondition of approval of a development project:1. Identify the purpose of the fee.2. Identify the use for the fee.3. Determine how there is a reasonable relationship between the fee's use and the type ofdevelopment project on which the fee is imposed.4. Determine how there is a reasonable relationship between the need for the public facilityand the type of development project on which the fee is imposed.5. Determine how there is a reasonable relationship between the amount of the fee and thecost of the public facility or portion of the public facility attributable to the developmenton which the fee is imposed.The purpose of this report is to demonstrate that the fee components comply with AB 1600. Theassumptions, methodologies, facility costs and standards, and cost allocation factors used toestablish the nexus between the levied fees and new development are in subsequent sections ofthis report.METHODOLOGYImposed fees require various findings to ensure that a reasonable relationship exists between thefee amount and the cost of the facility or portion of the facility attributable to the new development.Several methodologies are available to determine fee amounts. Choosing the appropriatemethodology depends on the type of facility for which the fee is calculated and the availability ofdocumentation to support the fee calculation. Following is a discussion of the methodologiesavailable to calculate the separate fee components in this report.Facility Standards MethodThe facility standards method determines the facilities and associated costs required toaccommodate growth based on adopted City standards. Depending on the fee analysis, theCity may or may not currently have sufficient facilities to meet the adopted standard. If theCity's existing facilities are below the standards, then a deficiency exists. In this case, theportion of the cost of planned facilities associated with correcting the deficiency must beDevelopment Impact Fee Nexus StudyCityofMillbrae5April 2020 satisfied with funding sources other than Development Impact fees. AB 1600 fees can onlyfund facilities needed to accommodate new development at the adopted standard.Master Plan MethodThe master plan method is based on a master facilities plan in situations where the neededfacilities serve both existing and new development. This approach allocates existing andplanned facilities across existing and new development to determine new development'sfair share of the needed facility. This approach is used when it is not possible todifferentiate the benefits of new facilities between existing and new development.Planned Facilities MethodThe planned facilities method calculates the standard based solely on the ratio of plannedfacilities to the increase in demand associated with new development. This method isappropriate when planned facilities are mostly for the benefit of new development, such asa wastewater trunk line extension to a previously undeveloped area. This method may alsobe used when there is excess capacity in existing facilities that can accommodate newdevelopment.Existing Inventory MethodThe existing inventory method uses a facility standard based on the ratio of existingfacilities to the existing service population on a cost per unit or cost per square foot basis.Under this approach, new development funds the expansion of facilities at the samestandard currently serving existing development. By definition, the existing inventorymethod ensures that no facility deficiencies are spread to future development. This methodis often used when a long-range plan for new facilities is not available.TIMING OF FEE PAYMENTThe fees included in the Fee program will be collected from new development at the time thebuilding permit for the project is issued.FEE ADJUSTMENT PROCEDURESThe fees require periodic adjustment to reflect amended facility requirements, receipt of fundingfrom alternative sources (i.e., state or federal grants), revised facilities or costs, changes indemographics, or updates to the City's General Plan, Housing Element, or Capital ImprovementPlan. In addition, the fees will be updated annually on January 1st to reflect the Engineering News-Record Construction Cost Index (CCI) rate for the San Francisco Bay Area.Development Impact Fee Nexus StudyCity of Millbrae6April 2020 The fees in this report may not apply to specialized development projects. For specializeddevelopment projects. City planning will review the development's impacts to determine theapplicable fees, as described in more detail below.CREDITS AND REIMBURSEMENT POLICIESThe City may provide fee credits or reimbursements to developers who dedicate land or constructfacilities. Fee credits or reimbursements shall be the lesser of the estimated cost of theimprovements as shown in this report, subject to inflation adjustments, or the actual cost incurredby the developer. Reimbursements will be made when funds are available based on the priority ofcapital improvements as determined by the City. Fee credits will be allowed on a case by casebasis as determined by the City. If there is an overlap with the Millbrae Station Area Specific Plan(MSASP) Area Development Impact Fee, as described later in the report, the developer will eitherpay only the applicable fee or receive a credit for any overlapping fees. Projects with existingdevelopment will receive a credit toward future impact fees equal to the fees that would have beenpaid for the removed space.The Development Agreement Law (GOV. Code § 65864 et seq.) authorizes the City to enter intoagreements for the development of real property with any party having a legal or equitable interest insuch property to establish certain development rights in such property for their mutual benefit in amanner not otherwise available to the contracting parties. Such agreements can assure property ownersthat they may proceed with projects as approved by the City and that those approvals will not bemodified (consistent with the legal principles of vesting) during the period covered by said agreements.The City is equally assured that elements of the project with particular and specific public interests areachieved and that its local land use policies are advanced. For developers that need to constructfacilities included in the Fee program, the City can enter into a Development Agreement (DA) thatwould condition the developer to construct said facilities and the City would provide fee credits orreimbursements to the developer for the constmcted facilities. The DA would include the credit andreimbursement policy. The City may elect to enter into an off-site improvement agreement with thedeveloper to construct the improvements and the City would provide fee credits or reimbursementsto the developer for the constructed facilities instead of a DA.SPECIALIZED DEVELOPMENT PROJECTSThe fees in this report may not apply to specialized development projects such as golf courses,cemeteries, assisted living facilities, sports facilities, or other specialized land uses. Forspecialized development projects City planning will review the development's impacts todetermine the applicable fees. The fee rates presented in this Nexus Study may be reduced,exempted, or waived under certain circumstances as determined by the City. Any exemption orreduction in fees will be based on the City's independent analysis and review of the subjectproperty. In addition, for reuse, density increasing, or rezone projects, the developer shall only beDevelopment Impact Fee Nexus StudyCity of Millbrae7April 2020 responsible for paying fees for the intensification of the development. City planning will reviewthe development's increased impacts to determine the applicable fees.Some developments may include more than one land use type. In these cases, the fee is calculatedseparately for each land use type. The City has the discretion to impose the fees based on thespecific aspects of a proposed development regardless of zoning. The fee imposed should be basedon the land use type that most closely represents the impacts of the development.ACCESSORY DWELLING UNITSAn accessory dwelling unit (ADU) is a second unit on the same lot that is attached or detachedfrom a residential unit. Per Assembly Bill No. 881 (AB881) fees cannot be charged for an ADUthat is less than 750 square feet. For an ADU that is 750 square feet or larger, an ADU will pay apercentage of the residential fee based on the square footage of the ADU in proportion to theprimary dwelling unit.Development Impact Fee Nexus StudyCity of Millbrae8April 2020 section 2 POPULATION ASSUMPTIONSGROWTH FORECASTSGrowth projections are used as indicators of demand. The City's existing population, as well as2040 population projections, are critical assumptions used throughout the fee sections that followin this report. The following resources were used to establish the City's Fee program:Estimates of total development through 2040 were calculated using the Bay AreaMetropolitan Commission 2040 projections, which are based on the Association of BayArea Governments (ABAG) Regional Forecast for Plan Bay Area 2040 projections and areused to determine the total amount of public facilities required to accommodate the futureservice population.Existing population estimates are from the 2019 California DOF.Existing non-residential worker populations are based on the 2020 modeled estimate fromthe ABAC Regional Forecast for Plan Bay Area 2040, August 2016.The Millbrae 2040 General Plan Existing Conditions Report utilizes population and employmentprojections based on ABAC projections. The growth forecasts in this analysis take into accountthe future planned development in the City, including the remaining development of the MSASPand redevelopment of the El Camino Real and Downtown Specific Plan.LAND USE TYPESTo ensure a reasonable relationship between each fee and the type of development paying the fee,the following land use categories are used in this Study:Single family: Detached dwelling units for residential uses, such as single family homes.Multifamily: All attached residential dwellings such as duplexes, triplexes, fourplexes,condominiums, townhomes, apartments, and care facilities.Commercial: Retail, service, and entertainment uses.Office: Professional buildings for business use.Industrial: Light industrial facilities (e.g., business/research parks, warehouses, mini-storage business, and light manufacturing facilities) as well as heavier operations (e.g.,manufacturing, processing, and assembling).Hotel: Development predominantly designed to be occupied less than 30 days per stay.Some developments may include more than one land use type. In these cases, the fee is calculatedseparately for each land use type. The City may use its discretion to determine the applicable feerates and land use categories that apply to a specific project regardless of zoning. The fee imposedshould be based on the land use type that most closely represents the impacts of the development.Development Impact Fee Nexus StudyCity of Millbrae9April 2020 SERVICE POPULATIONThe City's service population accounts for persons who live in the City and a weighted percent ofworkers employed in the City. Workers are weighted to reflect the lower per capita service demandcompared to City residents. Workers spend less time in the City than residents and use fewer Cityservices. The service population is used to determine the cost standard necessary to continueproviding the standard that the City's facilities currently provide and to ensure that the fees areallocated fairly to each type of new development based on impact.Table 1 summarizes the City's service population used to develop the Fees. The total servicepopulation of 26,439, including a fifty percent (50%) weighted factor for employees, wascalculated using information taken from the 2019 California DOF population estimate and 2020modeled estimated total jobs from the Bay Area Metropolitan Transportation CommissionProjections 2040 by Jurisdiction.Table 1: Service Population CalculationExisting PopulationResident EquivalentFactorService PopulationResidents1Workers223,1546,5701.000.5023,1543,285Total26,439State of California Department of Finance E-5 Population and Housing Estimates, 2019.2 Bay Area Metropolitan Transportation Comm ission Projections 2040 by Jurisdiction, 2020 Modeled Estimate.RESIDENT AND EMPLOYMENT DENSITYUsing persons per household (PPH) data for residential units and employment density data fornon-residential buildings establishes a reasonable relationship between the demand created by thedevelopment project and the fees charged. Developers pay fees based on the number of additionalresidential units or building square feet ofnon-residential development; therefore, the fee schedulemust convert service population estimates to these units of measure for each land use. Thisconversion is done using the average PPH and employment density by land use type.Table 2 summarizes the occupant density factors for residential and non-residential development.The residential density factors were calculated using information from the US Census, while thenon-residential density factors were calculated using the default occupancy counts from US GreenBuilding Council LEED v4.1 Building Design and Construction report dated January 22, 2019.Development Impact Fee Nexus StudyCity of Millbrae10April 2020 The employees per room factor is based on the hotel staff industry standards from HotelOperations Management .Table 2: Persons per Household and DensityResidential 'Single FamilyMultifamilyNon-ResidentialCommercialOfficeIndustrialHotel32.85 Residents per dwelling unit2.10 Residents per dwelling unit1.82 Employees per 1,000 square feet4.00 Employees per 1,000 square feet0.40 Employees per 1,000 square feet0.80 Employees per room' US Census Bureau, 2018 ACS 5-year estimate, Tables B25024 and B250332 USGBCLEED BD+C New Construction v4 Default Occupancy Counts.Hotel Operations Management Book - Hotel Staff Industry Standards.2040 LAND USE PROJECTIONThe 2040 land use projection includes the estimated amount of residential units developed usingassumptions from the Bay Area Metropolitan Commission 2040 projections, which are based onthe ABAC Regional Forecast for Plan Bay Area 2040 and information from the City. Projected2040 single family units were provided by the City. The estimated population growth is dividedby the persons per household to estimate the total amount ofmulti-family residential units in 2040and were verified by the City. Future development is anticipated to be mixed-use with non-residential development in conjunction with the residential units. The estimated building squarefootage and hotel development used in this analysis is based on information provided by the City.Table 3 summarizes the distribution of the estimated residential and non-residential developmentanticipated to take place in the City.' Hayes, David K., Miller, Allisha A., Ninemeier, Jack D. (July 30, 2016). Hotel Operations Management, 3rdEdition. Pearson.Development Impact Fee Nexus StudyCityofMillbrae11April 2020 Table 3: 2040 Residential and Non-Residential Development ProjectionsUnits/Square FeetResidentialSingle FamilyMulti-FamilyNon-ResidentialCommercialOfficeIndustrialHotel50 Dwellmg Units2,737 Dwelling Units179,000 Building Square Feet715,000 Building Square FeetBuilding Square Feet209 RoomsNote: The 2040 land use projection includes the estimated amount of residential unitsdeveloped using the Bay Area Metropolitan Commission 2040 projections, which arebased on the ABAC Regional Forecast for Plan Bay Area 2040 and information from theCity. The estimated population growth is divided by the persons per household to estimatethe total amount of residential units in 2040. Building square footage and hoteldevelopment used in this analysis is based on information provided by the City.Source: Bay Area Metropolitan Transportation Commission 2040 Projections and the City.MILLBRAE STATION AREA SPECIFIC PLAN AND THE EL GAMINGREAL AND DOWNTOWN SPECIFIC PLANThe MSASP is composed of approximately 116 acres of land adjacent to the ]\/[illbrae Bay AreaRapid Transit (BART) Station in one of the oldest areas of the city. Transportation is aprominent component in this area's development. The MSASP includes new residential and non-residential development including the demolition/redevelopment of some existing industrial/non-retail uses. The MSASP was approved in 2016 and the MSASP Area Development Impact FeeProgram was approved in 2017. The development of the MSASP is currently underway. Asmentioned previously, the growth forecast accounts for the future planned development in theCity, including the remaining development of the MSASP and redevelopment of the El CaminoReal and Downtown Specific Plan. This analysis also addresses the overlap between the City FeeProgram and the MSASP Area Development Impact Fee Program.The El Camino Real and Downtown Specific Plan builds upon the MSASP. The El Camino Realand Downtown Specific Plan includes the Station Area, which is the area in the southeasterncorner of the city, adjacent to the city ofBurlingame to the south; El Camino Real and Broadwayto the west; and Victoria Avenue, the City's Public Works storage, and Highline Canal to thenorth. While the El Camino Real and Downtown Specific Plan boundary encompasses theStation Area, the El Camino Real and Downtown Specific Plan defers to the MSASP fordevelopment standards within the Station Area. The El Camino Real and Downtown SpecificDevelopment Impact Fee Nexus StudyCity of Millbrae12April 2020 Plan Administrative Draft Report was prepared in March 2018, but the plan has not been adoptedyet. This analysis still takes into consideration the redevelopment of El Camino Real andDowntown.Development Impact Fee Nexus StudyCity of Millbrae13April 2020 Section 3 LIBRARY FEEBACKGROUNDThis section presents an analysis of the City's Library Fee. The Library Fee covers the costs tomitigate the effects of new development on the City's library facilities. The City library facilitiesare available to all residents and employees in the City. The fee is calculated using the ExistingInventory Method. Under this methodology, the facilities are inventoried and the value of thefacilities used to determine the current Level of Service (LOS) on a per capita basis. This LOScalculation is then used to determine the fee by land use that is needed for new development tofund the library facilities needed to maintain this existing LOS.SERVICE POPULATIONDemand for services and the associated facilities is based on the City's existing service population,which includes residents and non-resident workers. In calculating the service population forgrowth, workers were weighted less than residents to reflect lower service demand of workers.Non-resident workers spend less time in the City and use fewer services, so the demand for Cityservices is less than that of a resident.COST STANDARDTo calculate the appropriate Library Fee, this study examines the existing library facility value tocalculate the existing standard. The library facilities were originally constructed usingapproximately $9.7 million in bond funds in 2001. The 2001 General Obligation (GO) bonds wererefunded in 2013. As of the 2019 City Comprehensive Annual Financial Report the outstandingdebt is approximately $8.9 million. The outstanding debt was deducted from the total value of theexisting facility to determine the net library value. This net value is then divided by the existingservice population to determine the cost per capita. The cost per capita is then applied to the PPHand worker density assumptions to detennine the fee for each land use. This approach ensures thatthe new development contributes its fair share to new facilities at the same level of service the Citycurrently provides. Table 4 identifies the City's existing library facilities, the outstanding debt,outlines the total net value, and calculates the cost per capita.Development Impact Fee Nexus StudyCity of Millbrae14April 2020 Table 4: Library Facilities - Total Inventory ValueLocationBuildingBuilding Value' ContentsTotal ValueExistinsJF'acilitiesLibrary1 Library AveTotal Existing Facilities$10,744,083$155,461$10,744,083$10,899,544$155,461 $10,899,544Less: Outstanding Debt2 -$8,887,283Net Library Value $2,012,261Total Existing Service Population 26,439Cost per Capita $76.11Source: City ofMillbrae Statement of Valve - February 20, 2019.Total amount of outstanding General Obligation Bonds. Per City ofMUlbrae 2019 CAFR.FEE SCHEDULETable 5 summarizes the library fee schedule based on the existing cost standard established inTable 4. The cost per capita is converted to a fee per residential unit based on the persons perhousehold assumptions. The fee for non-residential uses is determined by multiplying the cost percapita times 0.5 (the weighting factor) and then multiplying by the number of employees per 1,000square feet or in the cast of the hotel, the employees per room.Table 5: Library Facilities - Fee ScheduleLand UseCost per CapitaDensityTotal Fee(Rounded)Residential (Fee uer Dwellins Unit)S mg 1c FamilyMultifamilyNon-Residential fFee per 1.000 Square Feet}CommercialOfficeIndustrialNon-Residential (Fee per Room)Hotel$76.1176.11$38.0638.0638.06$38.062.852.101.824.000.400.80$217160$6915215$30REVENUE PROJECTIONSTable 6 summarizes the anticipated Library revenue. The revenue will be available to expand theCity's existing library facilities to meet the need of new residents and workers in the City.Development Impact Fee Nexus StudyCity of Millbrae15April 2020 Table 6: Library Facilities - Estimated RevenueLand UseUnitsFeeAnticipatedRevenueResidential (per Unit}Single Family 50 $217 $10,850Multi-Family 2,737 160 437,905Non-Residential (per l.OOOsfor Room)Commercial 179,000 $69 $12,351Office 715,000 152 108,680Industrial - 15Hotel 209 30 6,270Total $576,056Note: Revenue projection assumes complete buildout projections seen in Table 3.NEXUS FINDINGS - LIBRARY FEEAB 1600 requires that public agencies satisfy five requirements when establishing, increasing, orimposing a fee as a condition of approval of a development project. The required findings are asfollows.Requirement 1: Identify the purpose of the fee.The purpose of the Library Fee is to fund new library facilities that are needed to maintainthe City's existing level of service.Requirement 2: Identify the use of the fee.The Library Fee will be used to fund new library facilities to maintain the existing level ofservice the City provides. As new development occurs, the City will be required to expandlibrary facilities to maintain the existing standard.Requirement 3: Determine how there is a reasonable relationship between the fee's use and thetype of development project on which the fee is imposed.New residential and non-residential development will generate additional growth. Anincrease in residents and non-resident workers will increase the demand for libraryfacilities. The Library Fee is calculated based on the City's existing standard as shown inTable 4. Residential and non-residential development are responsible for paying their fairshare to maintain the City's existing level of service standard based on the weighted servicepopulation assigned to each land use as shown in Table 5.Development Impact Fee Nexus StudyCityofMillbrae16April 2020 Requirement 4: Determine how there is a reasonable relationship between the need for thepublic facility and the type of development project on which the fee is imposed.An increase in residential and non-residential development generates additional residentsand workers that increase the need for library facilities to maintain the City's existing levelof service. The value of the City's existing facilities is divided by the current servicepopulation to determine the existing cost per capita. One worker is assumed to create halfof the demand of a new resident. Each residential land use is charged a fee based on theadditional residents it is expected to add multiplied by the cost per capita. Non-residentialdevelopment is charged a fee based on the cost per capita, multiplied by 0.5 (the weightingfactor), and then multiplied by the number of assumed workers per 1,000 square feet ofbuilding or in the case of a hotel, by the assumed workers per room. By charging the feebased on the additional residents or workers created by each land use, the fee directlycorrelates to the demand created by each new development.Requirement 5: Determine how there is a reasonable relationship between the amount of thefee and the cost of the public facility or portion of the public facility attributable to thedevelopment on which the fee is imposed.New facilities are necessary to maintain the City's existing level of service as newresidential and non-residential units are constructed. The City inventoried the existinglibrary facilities and identified the value. This value was divided by the City's existingservice population to calculate the cost per resident and the cost per worker necessary tomaintain the City's existing level of service. This cost per resident and cost per worker wasconverted into a cost per unit for each type of residential development, a cost per 1,000square feet for non-residential or a cost per room for hotels based on the estimated densitiesas shown in Table 5. Basing the fee on the additional residents or workers that are generatedensures that the development pays only their fair share of future facilities based on theirimpact.Development Impact Fee Nexus StudyCity of Millbrae17April 2020 section 4 GENERAL GOVERNMENT FACILITIESBACKGROUNDThis section presents an analysis of the City's General Government Facilities Fee. The GeneralGovernment Facilities Fee covers the costs to mitigate the effects of new development on theCity's general facilities. The existing facilities include the city hall, a meeting room, equipmentstorage/crew room, parking lots, existing vehicles and equipment, and any other governmentfacilities not addressed by other fees in this report. As the resident population and non-residentemployment in the City increases, there exists a correlating rise in the demand for generalgovernment facilities to support the increased demand on the City.The fee is calculated using the Existing Inventory Method. Under this methodology, the facilitiesare inventoried and the value of the facilities used to determine the current LOS provided by theCity on a per capita basis. This LOS calculation is then used to determine the fee by land use thatis needed for new development to fund the facilities needed to maintain this existing LOS.SERVICE POPULATIONDemand for services and the associated facilities is based on the City's existing service population,which includes residents and non-residential workers. In calculating the service population forgrowth, workers were weighted less than residents to reflect lower service demand of workers.Non-resident workers spend less time in the City and use fewer services, so the demand for Cityservices is less than that of a resident.COST STANDARDTo calculate the appropriate General Government Facilities Fee, this study examines the existinggeneral government facilities to calculate the existing standard. The total value is then divided bythe existing service population to determine the cost per capita. The cost per capita is then appliedto the PPH and worker density assumptions to determine the fee for each land use. This approachensures that the new development contributes its fair share to new facilities at the same level ofservice the City currently provides. Table 7 identifies the City's existing general governmentfacilities and outlines the total value.Development Impact Fee Nexus StudyCityofMillbrae18April 2020 uiI!Ii1It^-It-\.nlIllllil11IIIsl§ R. § s s ".§: §: §s ^' sa •-"(Noi-s?!5s § s~s3 P S S ^ S.^ o3 oSCT:s §s?^< ^.i js ^s ?< <ftHllllitltl!li ii IIg s g•S .9 .Si i 'Ss s.3 2s- 3I I53sI IIj•31IllsI^.^!I?s 1II§I I^"s?-f:i Iss-sgs.aIsss3•sIIi .1 .1Illa s SI .ii§•&•s8?1£•g•s 's.§sIss^1ssI3•g^j•gi&ssags•EIgfts§ IIll.3--gog.ilj3II?.sS .eI^1a.ss.•sss?Ill^ sli.s-s§: s.QS,& &ggss&&s3:^gsQ3s^•sas>:1?•32sff§.332s•s13^1.1.wboII?8BsIMassfcfaSt&IIll&15r|IllIllI!IlllitII!l!lIIIllIllliIlllitlit•XItjIlla11^Illli!ltiill!Sl!IllIll11}a'IllIllIstlliII1^01Ill>>II1^IIs ^1^1-2Ill FEE SCHEDULETable 8 summarizes the General Government Facilities Fee schedule based on the existing coststandard established in Table 7. The cost per capita is converted to a fee per residential unit basedon the persons per household assumptions. The fee for non-residential uses is determined bymultiplying the cost per capita times 0.5 (the weighting factor) and then multiplying by the numberof employees per 1,000 square feet or in the case of the hotel, the number of employees per room.Table 8: General Government Facilities - Fee ScheduleLand UseCost per CapitaResidential (Fee per Dwelline Unit)Single Family $372.45Multifamily 372.45Non-Residential (Fee per 1,000 Sauare Feet)Commercial $186.23Office 186.23Industrial 186.23Non-Residential (Fee per Room)Hotel $186.23DensityTotal Fee(Rounded)2.852.101.824.000.400.80$1,061782$33974574$149REVENUE PROJECTIONSTable 9 summarizes the anticipated General Government Facilities Fee revenue. The revenuewill be available to expand the City's existing general facilities to meet the need of new residentsand workers in the City.Development Impact Fee Nexus StudyCityofMillbrae20April 2020 Table 9: General Government Facilities - Estimated RevenueLand UseUnitsFeeAnticipatedRevenueResidentialSingle FamilyMultifamilyNon-ResidentialCommercialOfficeIndustrialHotelTotal502,737179,000715,000209$1,061782$33974574149$53,0502,140,260$60,681532,67531,141$2,817,807Note: Revenue projection assumes complete buildout projections seen in Table 3.NEXUS FINDINGS - GENERAL GOVERNMENT FACILITIES FEEAB 1600 requires that public agencies satisfy five requirements when establishing, increasing, orimposing a fee as a condition of approval of a development project. The required findings are asfollows.Requirement 1: Identify the purpose of the fee.The purpose of the General Government Facilities Fee is to fund government facilities(e.g., city hall expansion, community or meeting rooms, corporation yard improvements,parking lots, other vehicles and equipment, or any other items not covered by other feeareas) required to mitigate the impacts of new development on the City's infrastructure.Requirement 2: Identify the use of the fee.The General Government Facilities Fee will be used to fund government facilities tomaintain the existing level of service the City provides. As new development occurs, theCity will be required to expand general facilities to maintain the existing standard.Requirement 3: Determine how there is a reasonable relationship between the fee's use and thetype of development project on which the fee is imposed.New residential and non-residential development will generate additional growth. Anincrease in residents and non-resident workers will increase the demand for facilities. TheGeneral Government Facilities Fee is calculated based on the City's existing standard.Residential and non-residential development are responsible for paying their fair share tomaintain the City's existing standard based on the weighted service population assigned toeach individual land use as shown in Table 8.Development Impact Fee Nexus StudyCity of Millbrae21April 2020 Requirement 4: Determine how there is a reasonable relationship between the need for thepublic facility and the type of development project on which the fee is imposed.An increase in residential and non-residential development generates additional residentsand workers that increase the need for general facilities to maintain the City's existing levelof service. The value of the City's existing facilities is divided by the current servicepopulation to determine the existing cost per capita as shown in Table 7. One worker isassumed to create half of the demand of a new resident. Each residential land use is chargeda fee based on the additional residents it is expected to add multiplied by the cost per capita.Non-residential development is charged a fee based on the cost per capita, multiplied by0.5 (the weighting factor), and then multiplied by the number of assumed workers per 1,000square feet of building or in the case of hotels the number of assumed workers per room.By charging the fee based on the additional residents or workers created by each land use,the fee directly correlates to the demand created by each new development.Requirement 5: Determine how there is a reasonable relationship between the amount of thefee and the cost of the public facility or portion of the public facility attributable to thedevelopment on which the fee is imposed.New facilities are necessary to maintain the City's existing level of service as newresidential and non-residential units are constructed. The City inventoried the existinggovernment facilities and identified the value of each. This value was divided by the City'sexisting service population to calculate the cost per resident and the cost per workernecessary to maintain the City's existing level of service. This cost per resident and costper worker was converted into a cost per unit for each type of residential development anda cost per square foot for non-residential development based on the estimated densities asshown in Table 8. Basing the fee on the additional residents or workers that are generatedensures that the development pays only their fair share of future facilities.Development Impact Fee Nexus StudyCity of Millbrae22April 2020 section 5 RECREATION SERVICES FEEBACKGROUNDThis section presents an analysis of the City's Recreation Services Fee. The fee for recreationservices covers the costs to mitigate the effects of new development on recreation services. As theresident population in the City increase, there exists a correlating rise in the demand for recreationfacilities and services to support the increased demand on the City.The existing recreation facilities in the City include a park and recreation crew room/storage,superintendent offices, the Millbrae Historical Museum, and the temporary recreation center.Based on the Millbrae Community Center Rebuild Project Master Plan, prepared in 2018, thefuture planned facilities include a recreation center with solar panels and upgrades. The recreationcenter will include a daycare center.SERVICE POPULATIONDemand for services and associated facilities is based on the City's service population. The City srecreation services infrastructure and facilities that support growth serve primarily residentialdevelopment. The childcare service located in the recreation center will be available to all Cityresident and non-resident workers, thus serving both residential and non-residential developments.The planned future recreation center is designed to serve existing and future growth. The Cityprovided the total serviceable resident population for the future facilities based on updatedinformation since the Millbrae Community Center Rebuild Project Master Plan, prepared in 2018.The service population for the childcare facility includes employees.COST STANDARDTo calculate the appropriate Recreation Fee, this study examines the existing and future recreationfacilities and associated costs. In 2016 a fire completely destroyed the existing City communitycenter. The City has embarked on a plan to fund a new recreation center and currently has atemporary facility. This analysis deducts the cost of the temporary recreation center to avoiddouble counting the cost of the recreation center. The Millbrae Community Center Rebuild ProjectMaster Plan, prepared in 2018, outlined the plan for the new recreation Center and the cost in thisanalysis is based on an approximately 25,800 square foot facility based on input from the City.The square footage of the childcare service area from the City is used to allocate a portion of thecost to nonresidential development.The total cost for the recreation future facilities, less the cost for the childcare portion, is dividedby the total existing and future residential service population. The childcare facility in therecreation center will be available to all residents and employees within the city. The cost isDevelopment Impact Fee Nexus StudyCityofMillbrae23April 2020 allocated to the childcare facility based on the future serviceable population of the recreationcenter.The cost per resident for existing and future facilities, less the temporary recreation center, is thenapplied to the new residential growth for the types of new development. The cost per servicepopulation for the recreation childcare center is applied to new non-residential growth with respectto the type of new development weighted at 0.5 residents. This approach ensures that the newdevelopment contributes its fair share to recreation facilities based on their fair share of plannedfacilities. Table 10 identifies the City's existing and future recreation facilities and estimates thetotal value.Development Impact Fee Nexus StudyCityofMillbrae24April 2020 Table 10: Recreation Services Facilities - Total Inventory ValueLocationBuilding ValueBuildingContentsTotal ValueExistins FacilitiesPark & Rec Crew Room / StorageSuperintendent OfficesMiUbrae Historical MuseumTemporary Recreation Center477 Lincota Circle $0 $83,278 $83,278477 Lincoto Circle 57,239 0 57,239200 Constitution Square 301,129 0 301,129477 Lincoln Circle 2,727,648 958,860 3,686,508Total Existing Facilities$3,086,016$1,042,1381Less: Temporary Recreation Center Building and ContentsNet Recreation FacilitiesExisting City ResidentsCost per Capita for Existing FacilitiesFuture Facilties_Recreation Center ConstmctionSustainable UpgradesSolar PanelsTotal - Future Recreation Services ProjectsRecreation Center Square FeetIndoor Childcare Facility Square FeetRecreation Center Childcare Facility Cost AllocationCost per Service Population ofChildcare Facility3Future Facility Total Serviceable Population4Cost per Resident New Facilities (net ofChildcare Facility)Total Cost per Resident$4,128,154-$3,686,508$441,64623,154$19.07$31,000,0001,150,0001,100,000$33,250,00025,8002,560$3,299,225$99.5133,154$903.38$1,021.96/ In 2016 afire completely destroyed the existing City community center. The analysis deducts the cost for the temporary recreation center as the Cityhas embarked on a plan to for a new recreation center.Millbrae Community Center Rebuild Project Master Plan, 2018 and the CilyofMillbrae. Costs provided by the City and are in 2019 dollars.The childcare facility in the recreation center 'will be available to all residents and employees within the city. These costs are allocated to thechildcare facility based on the future serviceable population of the recreation center plus the future City employees weighted at 0.5. Employees areweighted to reflect the lower per capita service demand compared to City residents.'' Total serviceable population of the future recreation center provided by the City on November 25th, 2019.Source: City ofMillbrae Statement of Value - February 20. 2019.Development Impact Fee Nexus StudyCity of Millbrae25April 2020 FEE SCHEDULETable 11 summarizes the Recreation Services Fee schedule based on the cost per servicepopulation established in Table 10. The cost per service population is converted to a fee perresidential unit based on the persons per household assumptions. The fee for non-residential usesis determined by multiplying the cost per service population for the childcare facility multipliedby 0.5 to discount for the lower impact of employees vs residents and then multiplying by thenumber of employees per 1,000 square feet or in the case of the hotel, the number of employeesper room.Table 11: Recreation Services Facilities - Fee ScheduleLand UseCost per ServicePopulationDensityTotal Fee(Rounded)Residential (Fee per Dwellins Unit}Single FamilyMultifamilyNon-Residential (Fee per 1.000 Square Feet)CommercialOfficeIndustrialNon-Residential {Fee per Room)Hotel$1,021.961,021.96$49.7649.7649.76$49.762.852.101.824.000.400.80$2,9132,146$9119920$40REVENUE PROJECTIONSTable 12 summarizes the anticipated Recreation Services Fee revenue. The revenue will beavailable to fund a portion of a new recreation center that is necessary to mitigate the impacts ofnew development.Development Impact Fee Nexus StudyCity of Millbrae26March 2020 Table 12: Recreation Services - Estimated RevenueLand UseUnitsFeeAnticipatedRevenueResidentialSingle FamilyMultifamilyNon-ResidentialCommercialOfficeIndustrialHotelTotal502,737179,000715,000209$2,9132,146$911992040$145,6505,873,398$16,209142,2998,319$6,185,875Note: Revenue projection assumes complete buildout projections seen in Table 3.NEXUS FINDINGS - RECREATION SERVICES FEEAB 1600 requires that public agencies satisfy five requirements when establishing, increasing, orimposing a fee as a condition of approval of a development project. The required findings are asfollows.Requirement 1: Identify the purpose of the fee.The purpose of the Recreation Services Fee is to fund a portion of a new recreation centerthat is necessary to mitigate the impacts of new development.Requirement 2: Identify the use of the fee.The Recreation Services Fee will be used to fund a portion of a new recreation facility thatis needed to accommodate growth based on new developments fair share of plannedfacilities. The City plans to build a new approximately 25,800 square foot recreation centerthat includes a childcare facility. The childcare facility will be available to all City residentsand non-residential workers.Requirement 3: Determine how there is a reasonable relationship between the fee's use and thetype of development project on which the fee is imposed.New residential and non-residential development will generate additional demand. Anincrease in residents will increase the demand for recreation facilities. An increase in non-residential workers and residents will increase the demand for childcare facilities. TheRecreation Services Fee is calculated based on a cost per service population.Development Impact Fee Nexus StudyCityofMillbrae27April 2020 Requirement 4: Determine how there is a reasonable relationship between the need for thepublic facility and the type of development project on which the fee is imposed.The Recreation Services Fee is calculated based on a cost per service population. The totalcost for the recreation future facilities, less the cost for the childcare portion, is divided bythe total existing and future resident service population. This is added to the cost per capitaof the City's existing facilities to determine the total cost per capita. The childcare facilityin the recreation center will be available to all residents and employees within the city.These costs are allocated to the childcare facility based on the future serviceable populationof the recreation center. Employees are weighted at 0.5 to reflect the lower per capitaservice demand compared to City residents. Each residential land use is charged a fee basedon the additional residents it is expected to add multiplied by the cost per servicepopulation. Non-residential development is charged a fee based on the cost per servicepopulation multiplied by 0.5 and then multiplied by the number of assumed workers per1,000 square feet of building or per hotel room as shown in Table 11. By charging the feebased on the additional residents or workers created by each land use, the fee directlycorrelates to the demand created by each new development.Requirement 5: Determine how there is a reasonable relationship between the amount of thefee and the cost of the public facility or portion of the public facility attributable to thedevelopment on which the fee is imposed.New facilities are necessary to maintain the level of service as new residential and non-residential units are constructed. The City inventoried the existing recreation facilities andidentified the value of each. This analysis deducted the cost of the temporary recreationcenter as a new recreation center is planned. The planned facilities and costs are based onthe Millbrae Community Center Rebuild Project Master Plan, 2018, and the City ofMillbrae. This value is divided by the service population to determine the cost per servicepopulation. The childcare facility in the planned recreation center will be available toresidents and employees in the City and therefore includes future City employees weightedat 0.5. The cost per service population for existing and future facilities, less the temporaryrecreation center, is applied to the new residential growth for the type of new development.The cost per service population for the recreation childcare center is applied to new non-residential growth with respect to the type of new development. This approach ensures thatnew development contributes its fair share to recreation facilities based on their fair shareof planned facilities. This cost per service population was converted into a cost per unit foreach type of residential development and a cost per 1 ,000 square foot for non-residentialdevelopment based on the estimated densities as shown in Table 11. Basing the fee on theadditional residents or workers that are generated ensures that the development pays onlytheir fair share of future facilities.Development Impact Fee Nexus StudyCityofMillbrae28April 2020 Section 6 PUBLIC SAFETYBACKGROUNDThis section presents an analysis of the City's Public Safety Fee. The Public Safety Fee covers thecosts to mitigate the effects of new development on the City's public safety facilities. Existingpublic safety facilities include police facilities, fire stations, a fire training tower, and a rooftraining pad. As the resident population and non-resident employment in the City increase, thereexists a correlating rise in the demand for public safety facilities to support the increased demandon the City.The Public Safety Fee is calculated using the Existing Inventory Method. Under this methodology,the facilities are inventoried and the value of the facilities used to determine the current LOSprovided by the City on a per capita basis. This LOS calculation is then used to determine the feeby land use that is needed for new development to fund the facilities needed to maintain thisexisting LOS.OVERLAP WITH MSASPThe MSASP Area Development Impact Fee includes a public safety component for the remodeland upgrade of the City Fire Station #37 training tower and vehicles and equipment. Due to theoverlap between the two fee programs, development in the MSASP will pay the MSASP AreaDevelopment Impact Fee and receive a credit against the City's Public Safety Fee in the amountof the public safety component of the MSASP Area Development Impact Fee. Given that theamount of the City's Public Safety Fee is higher than the credit for the public safety componentof the MSASP Area Development Impact Fee, the amount of the City's Public Safety Fee wouldequal the total fee less the credit for the public safety component of the MSASP AreaDevelopment Impact Fee.SERVICE POPULATIONDemand for services and the associated facilities is based on the City's existing service population,which includes residents and non-residential workers. In calculating the service population forgrowth, workers were weighted less than residents to reflect lower service demand of workers.Non-resident workers spend less time in the City and use fewer services, so the demand for Cityservices is less than that of a resident.COST STANDARDThe City-owned public safety facilities are summarized in Table 13. Public safety vehicles andequipment are provided by the County and are not included m the fee calculations.'The total valueof the facilities is divided by the City's existing service population to determine the cost per capitaDevelopment Impact Fee Nexus StudyCity of Millbrae29April 2020 of the existing police facilities. The cost per capita is then applied to the PPH and workerassumptions to determine the fee for each land use. This approach ensures that new developmentcontributes its fair share to new facilities at the same level of service the City currently provides.Table 13 identifies the City's existing public safety and outlines the total value.Table 13: Public Safety Facilities - Total InventoryLocationBuildingBuilding Value Contents3Total Value2Existine FaciltiesCity HaU Police AUocation *Police AnnexAUocationFire Station #37Fire Training TowerRoof Training PadFire Station #38581/621 Magnolia Ave $783,461 $218,165 $1,001,626621 Magnolia/450 Poplar Ave 944,222 - 944,222511 Magnolia Ave 3,220,763 230,940 3,451,703511 Magnolia Ave 217,727 19,156 236,883511 Magnolia Ave 79,474 - 79,474785Crestview 5,038,625 - 5,038,625Total Existing Facilities$10,284,272$468,261 $10,752,532Existing Service Population 26,439Cost per Capita $406.69/ Builidng Value and Contents for the City Hall allocation calculated by dtvsdmg the total square footage designated for Police uses (4,190 GSF)by the total square footage of the joint City ffall/Police Station (14,560 GSF).3 BuiUdng Value and Contents for the Police Annex allocation calcitlated by dividing the total square footage designated for Police uses (3,651GSF) by the total square footage of the joint City Hall/Police Station (8,436 GSF).Vehicles and Equipm ent are provided by the County and are not included in the calculations.Source: City ofMillbrae Statement of Value - February 20, 2018.FEE SCHEDULETable 14 summarizes the Public Safety Fee schedule based on the existing cost standardestablished in Table 13. The cost per capita is converted to a fee per residential unit based on thepersons per household assumptions. The fee for non-residential uses is determined by multiplyingthe cost per capita times 0.5 (the weighting factor) and then multiplying by the number ofemployees per 1,000 square feet or in the case of hotels, the number of employees per room.Development Impact Fee Nexus StudyCityofMillbrae30April 2020 Table 14: Public Safety - Fee ScheduleLand UseCost per CapitaDensityTotal Fee(Rounded)Residential (Fee per Dwellins Unit)Single FamilyMultifamilyNon-Residential (Fee ocr 1,000 Sauare Feet)CommercialOfficeIndustrialNon-Residential (Fee per Room)Hotel$406.69406.69$203.35203.35203.35$203.352.852.101.824.000.400.80$1,159854$37081381$163REVENUE PROJECTIONSTable 15 summarizes the anticipated Public Safety Fee revenue. The revenue will fund.publicsafety buildings needed to house police and fire services needed to meet the need of newresidents and workers in the City.Table 15: Public Safety - Estimated RevenueLand UseUnitsFeeAnticipatedRevenueResidentialSingle FamilyMultifamilyNon-ResidentialCommercialOfficeIndustrialHotelTotal502,737179,000715,000209$1,159854$37081381163$57,9502,337,317$66,230581,29534,067$3,076,859Note: Revenue projection assumes complete buildout projections seen in Table 3.Development Impact Fee Nexus StudyCity of Millbrae31March 2020 NEXUS FINDINGS - PUBLIC SAFETY FEEAB 1600 requires that public agencies satisfy five requirements when establishing, increasing, orimposing a fee as a condition of approval of a development project. The required findings are asfollows.Requirement 1: Identify the purpose of the fee.The purpose of the Public Safety Fee is to fund public safety buildings needed to housepolice and fire services that are required to mitigate the impacts of new development onthe City's facilities.Requirement 2: Identify the use of the fee.The Public Safety Fee will be used to fund new police and fire facilities that are necessaryto maintain the existing level of service the City provides. As new development occurs, theCity will be required to expand police and fire facilities to house additional officers andfirefighters.Requirement 3: Determine how there is a reasonable relationship between the fee's use and thetype of development project on which the fee is imposed.New residential and non-residential development will generate additional residentialpopulation and non-residential employment growth. An increase in residents and non-resident workers will increase the demand for public safety facilities. The Public SafetyFee is calculated based on the City's existing standard. Residential and non-residentialdevelopment are responsible for paying their fair share to maintain the City's existingstandard based on the weighted service population assigned to each individual land use asshown in Table 14.Requirement 4: Determine how there is a reasonable relationship between the need for thepublic facility and the type of development project on which the fee is imposed.An increase in residential and non-residential development generates additional residentsand workers that increase the need for public safety facilities to maintain the City's existinglevel of service. The value of the City's existing facilities is divided by the current servicepopulation to determine the existing cost per capita. One worker is assumed to create halfof the demand of a new resident. Each residential land use is charged a fee based on theadditional residents it is expected to add multiplied by the cost per capita. Non-residentialdevelopment is charged a fee based on the cost per capita, multiplied by 0.5 (the weightingfactor), and then multiplied by the number of assumed workers per 1,000 square feet ofbuilding or per hotel room as shown in Table 14. By charging the fee based on theDevelopment Impact Fee Nexus StudyCity of Millbrae32April 2020 additional residents or workers created by each land use, the fee directly correlates to thedemand created by each new development.Requirement 5: Determine how there is a reasonable relationship between the amount of thefee and the cost of the public facility or portion of the public facility attributable to thedevelopment on which the fee is imposed.New facilities are necessary to maintain the City's existing level of service as newresidential and non-residential units are constructed. The City inventoried the existingpublic safety facilities and identified the value of each. This value was divided by the City'sexisting service population to calculate the cost per resident and the cost per workernecessary to maintain the City's existing level of service. This cost per resident and costper worker was converted into a cost per unit for each type of residential development anda cost per square foot for non-residential development based on the estimated densities asshown in Table 14. Basing the fee on the additional residents or workers that are generatedensures that the development pays only their fair share of future facilities.Development Impact Fee Nexus StudyCity of Millbrae33April 2020 section 7 PARK ACQUISITION AND FACILITIES FEEBACKGROUNDThis section presents an analysis of the need for park facilities, such as picnic shelters, restroomsand playground equipment to accommodate new development in the City and to ensure that newdevelopment provides adequate funding to meet its needs. Population information was reviewedto accurately determine the necessary fees to accommodate new development in the City and toensure that new development provides adequate funding to meet increased needs.OVERLAP WITH MSASPThe MSASP Area Development Impact Fee includes a park component that funds additionalparks and recreation land and facilities. Due to the overlap between the two fee programs,development in the MSASP will pay the MSASP Area Development Impact Fee and receive acredit against the City's Park Acquisition and Facilities Fee in the amount of parks component ofthe MSASP Area Development Impact Fee. Given that the amount of the City's Park Acquisitionand Facilities Fee is higher than the credit for the parks of the MSASP Area Development ImpactFee, the amount of the City's Park Acquisition and Facilities Fee would equal the total fee lessthe credit for the parks component of the MSASP Area Development Impact Fee. This ensuresthat the MSASP development provides adequate funding to meet increased needs and maintainthe planned update General Plan standard of three (3) acres of parks per 1,000 residents, asprovided by the City.SERVICE POPULATIONThe AB 1191 QUIMBY Act, California government code §66477 (QUIMBY Act), outlines therequirements for imposing fees for park purposes with a minimum of three (3) acres and amaximum of five (5) acres of green space per 1,000 residents. The 1998 General Plan stated thatthe City's standard was a minimum of two (2) acres of parkland per 100 residential units. The parkstandard used in this analysis is based on the planned update to the General Plan which sets thestandard at three (3) acres of parkland per 1,000 residents. This information was provided by Cityon November 25th, 2019. The Park Acquisition and Facilities Fee is not applied to non-residentialdevelopment because of the minimal per employee service demand.According to the Administrative Draft Millbrae Parks and Facilities Inventory Report, August2019, prepared by Carducci Associates, the city contains "approximately 2.9 acres [of parklandand trails] per 1,000 residents based on the 2015 resident population of 22,898." Including theCivic Center and joint-use school fields, the city provides approximately 5.0 acres per 1,000residents. Therefore, the planned updated General Plan standard of three (3) acres of parkland per1,000 residents is consistent with the current parkland provided by the City.Development Impact Fee Nexus StudyCity of Millbrae34April 2020 COST STANDARDTable 16 identifies the cost standard for construction costs per park acre. Charging a fee based onthe City's standard of three acres per 1,000 residents ensures that the City will have sufficientrevenues to maintain this standard as new development occurs and population increases.As stated in the City's Municipal Code 10.20 (Quimby), as a condition of approval of a finalsubdivision map, the subdivider shall dedicate land or pay a fee in lieu thereof, or both, at theoption of the city, for park or recreational purposes at the time. The City Park Acquisition andFacilities Fee satisfies the City's Quimby fee requirement. The developer could also dedicate landin lieu of paying the land portion of the fee.Table 16: Park Acquisition and Facilities Fee - Cost StandardLand Cost per Acre' $5,330,000Constmction Cost per AcreTotal Park Cost per AcreGeneral Plan Standard (3 Acres per 1,000)3Land Acquisition Cost per ResidentPark Construction Cost per ResidentTotal Park Cost per Resident1,032,0006,362,0003.00$15,990$3,096$19,086' Land costs from a survey of completed land transactions in San Mateo County.2 Costs extrapolated from the Millbrae Community Center Rebuild Master Plan.Updated General Plan standard of 3 acres of parkland per 1,000 residents providedby City on November 25th, 2019.FEE SCHEDULETable 17 summarizes the Park Acquisition and Facilities Fee schedule based on the existingstandard. The cost per capita is converted to a fee per new residential unit based on the estimatedpersons per household.Development Impact Fee Nexus StudyCity of Millbrae35April 2020 Table 17: Park Acquisition and Facilities Fee - Proposed Fee ScheduleABC AxC=D BxC=E D+ELand Cost per Construction Cost Construction Cost Total Park CostResident per Resilient Density Land Cost per Unit per Unit per UnitLand UseFee for Parklanit Acquisition and FacilitiesResidential (Fee oerDwellim Unit)Single FamilyMultifamfly$15,99015,990$3,0963,0962.852.10$45,57233,579$8,8246,502$54,39540,081REVENUE PROJECTIONSTable 18 summarizes the anticipated Park Acquisition and Facilities Fee revenue. Generally, thefunds need to be expended to build improvements that expand the City's existing park system toensure the City maintains its standard of three (3) acres per 1,000 residents.Table 18: Park Acquisition and Facilities Fee - Estimated RevenueLand UseUnitsFeeAnticipatedRevenueResidentialSingle FamilyMultifamilyTotal502,737$54,39540,081$2,719,755109,696,785$112,416,540Note: Revenue projection assumes complete buildout projections seen in Table 3.NEXUS FINDINGS - PARK ACQUISITION AND FACILITIES FEEAB1600 requires that public agencies satisfy five requirements when establishing, increasing, orimposing a fee as a condition of approval of a development project. The required findings are asfollows.Requirement 1: Identify the purpose of the fee.The purpose of the Park Acquisition and Facilities Fee is to acquire new park acres and tofund park facilities such as playground equipment, restrooms, and trash enclosures,required to serve new development in the City.Requirement 2: Identify the use of the fee.The Park Acquisition and Facilities Fee is used to fund the acquisition of land anddevelopment of new park facilities needed to maintain the proposed General Plan standardDevelopment Impact Fee Nexus StudyCity of Millbrae36April 2020 of three (3) acres of parks per 1,000 residents. As new development occurs, the City willbe required to expand park facilities to meet the growing needs of the new population. Thepark fee will provide funding for these additional facilities to maintain the proposedGeneral Plan standard of three (3) acres of parks per 1,000 residents.Requirement 3: Determine how there is a reasonable relationship between the fee's use andthe type of development project on which the fee is imposed.New residential development will generate additional residents. An increase in residentswill increase the demand for park facilities. The Park Acquisition and Facilities Fee iscalculated using the City's proposed general plan standard of three (3) acres of park per1,000 residents. Residential development is responsible for paying its fair share to maintainthe City's standard. Non-residential uses do not pay the fee since they do not generateadditional residents and workers have minimal impact on the City's park system.Requirement 4: Determine how there is a reasonable relationship between the need for thepublic facility and the type of development project on which the fee is imposed.New residential development will contribute to an increase in residents that raises the needfor park facilities to maintain the City's proposed General Plan park standard of three (3)acres per 1,000 residents. Non-residential uses do not pay the fee since workers haveminimal impact on the City's park system. Residential development pays its fair share ofthe fees based on the estimated persons per household for each type of development.Requirement 5: Determine how there is a reasonable relationship between the amount of thefee and the cost of the public facility or portion of the public facility attributable to thedevelopment on which the fee is imposed.As new residential units are constructed, new park facilities are necessary to maintain theCity's proposed General Plan standard of three (3) acres per 1,000 residents as providedby City on November 25th, 2019. The City's current standard is similar to this, so newdevelopment is not funding existing deficiencies or and is funding parks at a similarstandard to the standard the City currently provides. The fees are calculated by taking thecost per acre of park land times three acres of parks per 1,000 residents and then dividingthat by 1,000 to determine the cost per capita. The cost per capita is then spread to eachdevelopment type based on the estimated PPH as shown in Table 17. The park fee consistsof a land acquisition portion and facilities construction portion. For developments thatdedicate park land, the land component will not apply. By spreading the fees based onpopulation density assumptions, each new residential unit is paying only its fair share ofthe facilities required to maintain the City's proposed General Plan Standard. Non-residential land uses do not have a park fee as non-residential development will notgenerate a significant increase in park facility demand.Development Impact Fee Nexus StudyCity of Millbrae37April 2020 Section 8 MOBILITY FEEBACKGROUNDThis section presents an analysis of the need for mobility improvements, such as bicycle andpedestrian infrastructure to accommodate new development in the City. The Mobility Fee iscalculated based on the ratio of planned facilities to the increase in demand associated with newdevelopment. As the resident population and non-resident employment in the City increase, thereexists a correlating rise in the demand for mobility improvements to support the increased demandon the City.SERVICE POPULATIONThe City's Mobility Fee provides funding for new mobility facilities, such as bicycle andpedestrian infrastructure, to accommodate and mitigate new development's impact on the City'sinfrastructure. The residential and non-residential land uses will be assessed a fee based on the PMpeak hour trips from the 10 Edition of the Institute of Transportation Engineers' (ITE) GenerationManual generated by each land use.OVERLAP WITH MSASPThe MSASP Area Development Impact Fee includes a transportation component that will helpmaintain acceptable transportation operations in the MSASP, including uses for alternativemodes such as bike and trail improvements. Based on the improvements included in thetransportation component of the MSASP Area Development Impact Fee, development in theMSASP is exempt from the City's Mobility Fee.FACILITIES AND COSTSCalculating the Mobility Fee based on the ratio of new developments increase of demand onplanned facilities ensures that the City will have sufficient revenues to build and expand the City'smobility facilities in order to maintain acceptable levels of services as new development occurs. Itis anticipated that the City's population will grow by approximately 20 percent through 2040.Therefore 20 percent of total mobility costs are allocated to new development.Table 19 identifies the list of eligible mobility projects and associated costs based on the City ofMillbrae Active Transportation Plan Administrative Draft dated March 2018. Plannedimprovements include bicycle improvements such as a separated bike lane, low-stress bike routes,access connections, and share-use paths. Pedestrian infrastructure includes streetscapeimprovements, freeway overcrossing, multi-lane crosswalk enhancements, signalized intersectionimprovements, interchange crossing improvements, and high-visibility crossing striping. The costDevelopment Impact Fee Nexus StudyCity of Millbrae38April 2020 Table 19: Mobility Fee - Total Project CostProjectLocationTotal Project CostAllocation to NewDevelopmentCost Included in FeeProgramBicycle I/ifrastnictureSeparated Bike LaneLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLovv-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLovv-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteLow-Stress Bike RouteAccess ConnectionsEaensionShared-UsePathShared.Us e PathBridgeTBDPedestrian InirastructureInprovementsImprovementsFreeway OvercrossingCross\valkIrrprovementsImprovementsCrosswalkIrqprovementsImprovementsIirprovementsImprovementsImproverrentsStripingImprovementsIrrprovementsImprovementsTolsdEl Camino Real fromCity Units to City LimitsAviador AvenueBroadway / Center StreetCalifornia DriveConejo DriveEvergreen WayFontera Way / Vallejo Drive / Millbrae Avenue / Skyline Boulevard / Hillcrest AvenueHelen DriveHelen Drive / Tiago DriveHemlock AvenueHillcrest AvenueLansdale AvenueLarks pur DriveLaurel Avenue / Barcelona DriveLerida AvenueLincoln CircleLudeman LaneMagnolia Avenue / Park PlaceMurchison DriveOld Bayshore DrivePalm AvenueRichmond DriveRollins Road / Canino MillenniaSan Anselmo Avenue/ Santa Helena AvenueSpur Trail Access Connections at Palm Avenue and Mills Piigh SchoolSpur Trail E\tension fromTioga Drive to Larkspur DriveMonterey Shared Use Path Eriension NorthMonterey Shared Use Path Extension SouthHighway 101 Bicycle BridgeMillbrae Avenue Bikeway Inyrovements fromMagnolia Avenue to Old Bayshore HighwayBroadway from Millbrae Avenue to Meadow Qen AvenueB Camino Real fromMillbrae Avenue to Meadow Qen AvenueU.S. 101 Bicycle and Pedestrian Overcrossing0 Camino Real & Chadboume AvenueEl Camino Real & Hillcrest AvenueEl Camino Real & Millwood Avenue0 Carrrino Real & Santa Helena AvenueH Camino Real & Santa Inez AvenueB Camino Real & SBva AvenueB Camino Real & Victoria AvenueB Camino Real & Murchis on Av enueMillbrae Avenue & U.S. 101 Northbound and Southbound RampsVarious Locations throughout the CityB Camino Real Road Diet (Complete Streets)Citywide Traffic CalmingMiHbrae SFO High Speed Rail Station Parking and Wayfmding$6,945,00069,00045.00028.00024.00028,000129.00069.00047,000129,000119,00016,00019.00091,00021,00034.00056,000237.000240.00028.00084,000103.00048.00055,00086.000462,000357,000l.026.000TBDTBD$4,508,0004,508,0006,500,0001.258,0(»227.000227.000294.000227,000227,000227.000227,000551,000836,000TBDTBDTBD20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%TBDTBD20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%TBDTBDTBD$1,389,00013,8009.0005.6004,8005,60025.80013.8009,40025.80023,8003.2003.80018,2004,2006,80011.20047.40048.0005.60016,80020,6009,60011.00017.20092,40071,400205,200TBDTBD$901,600901,6001,300,000251,60045,40045,40058.80045,40045.40045.-0045,400110,200167.200TBDTBDTBD$30,412,000 $6,082,400New Developrrent Trip EDUs2 3,211.81Cost per Trip EDU $1^93.76! It is anticipated thai the City will mair approximately 20 percenf of growth through 2040. Thewfore 20 percent is aiiocaled tos Trip EDUs are calcifialed on Table 20.Soiirce: City ofMillbrae Active TrmisporlaSion Plan Adm insstralive Draft dated March 2018.development.Development Impact Fee Nexus StudyCityofMillbrae39March 2020 per trip is calculated by estimating the total eligible project cost shown in Table 19 and dividingby the total future trips estimated in Table 20. Projects within one-half mile of a transit stop areeligible for a reduction of their impact fees in accordance with California Government CodeSection 66005.1.FEE SCHEDULETable 20 estimates the trips generated by future development based on the land use projections inTable 3. The ITE trip generation rate manual, 10th edition is used to estimate the total PM peakhour trips generated by the estimated 2040 development. Table 20 shows the fee for each land use.Table 20: Mobility Fee - Total Remaining Trips Generated and Fee ScheduleLand UseUnitsITE Trip GenerationRate*Trips GeneratedCost Per Trip2Total Fee(Rounded)Residential (Fee per Dwellim Unit)Single Famfly 50Multifamily 2,737Non-Residential (Fee per 1.000 Square Feet}CommercialOfficeIndustrial179,000715,000Non-Residential (Fee per Room)Hotel 2090.990.563.811.150.630.6049.501,532.67681.99822.25125.40$1,893.761,893.76$1,893.761,893.761,893.76$1,893.76$1,8751,061Fee/ l.000 Sa. Ft.$7,2152,1781,193$1,1363,211.81Institute of Transportation Engineers Common Trip Generation Rates (PM Peak Hovr) sovrcedjrom the ITE Trip Generation Manual, lOfh Edition.Cost per trip calculated by dmding the total project costs inclvded m she fee program divided by the total number of trips generated.REVENUE PROJECTIONSTable 21 summarizes the anticipated Mobility Fee revenue. The revenue will be mobilityimprovements needed to meet the need of new residents and workers in the City.Development Impact Fee Nexus StudyCity of Millbrae40March 2020 Table 21: Mobility Fee - Estimated RevenueLand UseUnitsFeeAnticipatedRevenueResidentialSingle FamilyMultifamilyNon-Residentia! 'CommercialOfficeIndustrialHotelTotal502,737179,000715,000209$1,8751,061$7,2152,1781,1931,136$93,7502,903,856$1,291,4851,557,270237,424$6,083,785Note: Revenue projection assumes complete buildout projections seen in Table 3.NEXUS FINDINGS - MOBILITY FEEAB 1600 requires that public agencies satisfy five requirements when establishing, increasing, orimposing a fee as a condition of approval of a development project. The required findings are asfollows.Requirement 1: Identify the purpose of the fee.The purpose of the Mobility Fee is to fund the mobility facilities such as a separated bikelane, low-stress bike routes, access connections, shared-use paths, streetscapeimprovements, freeway overcrossing, multi-lane crosswalk enhancements, signalizedintersection improvements, interchange crossing improvements, and high-visibilitycrossing striping that are necessary to mitigate mobility impacts created by new residentialand non-residential development in the City.Requirement 2: Identify the use of the fee.The Mobility Fee will be used to fund the mobility facilities and infrastructure identifiedin Table 19 that are necessary to accommodate new developments increase of demand onthe City's mobility system.Requirement 3: Determine how there is a reasonable relationship between the fee's use and thetype of development project on which the fee is imposed.New residential and non-residential development will generate additional trips as identifiedin the ITE trip generation manual 10th edition and summarized in Table 20. These trips willDevelopment Impact Fee Nexus StudyCity of Millbrae41April 2020 impact the existing transportation infrastructure, which can be alleviated with alternativemobility improvements such as bicycle and pedestrian improvements. Residential and non-residential development is responsible for paying their fair share of the City's neededmobility infrastructure based on the new trips that are generated by each type ofdevelopment.Requirement 4: Determine how there is a reasonable relationship between the need for thepublic facility and the type of development project on which the fee is imposed.New residential and non-residential development will contribute to an increase in trips thatcreate the need for expanded mobility infrastructure improvements. These trips will impactthe existing transportation infrastructure, which can be alleviated with alternative mobilitymethods such as bicycle and pedestrian improvements. In addition, the City is largely builtout making additional road improvements difficult and therefore will need to accommodateadditional trips with mobility improvements. The Mobility Fee will be used to build andimprove new development's fair share of mobility facilities as identified in Table 19. Eachdevelopment will pay its fair share of the fees based on the trip generation rates summarizedin Table 20. Charging a Mobility Fee based on the number of new trips generated by eachnew development ensures that the project pays only to mitigate their fair share of theimprovements.Requirement 5: Determine how there is a reasonable relationship between the amount of thefee and the cost of the public facility or portion of the public facility attributable to thedevelopment on which the fee is imposed.New mobility facilities are necessary to accommodate new developments increase indemand on the City's mobility system. The City's list of eligible mobility projects is shownin Table 19. The eligible cost is based on the anticipated growth in the City through 2040.The eligible cost is then divided by the trips expected to be generated by futuredevelopment in the City. This cost per trip is then multiplied by the PM peak hour tripgeneration rate from the 10th edition ITE manual to calculate the fee for each land use. Thisfee calculation ensures that each development pays only their fair share to mitigate theirtraffic impacts within the City based on the additional trips generated by the development.)Development Impact Fee Nexus StudyCityofMillbrae42April 2020 section 9 IMPLEMENTATION AND ADMINISTRATIONIMPLEMENTATIONAccording to the Mitigation Fee Act, prior to levying a new fee or increasing an existing fee, anagency must hold at least one open and public meeting. Notice of the time and place of the meeting,including a general explanation of the matter to be considered, and a statement that the datarequired by this section is available, shall be mailed at least 14 days before the meeting to anyinterested party who files a written request with the local agency for mailed notice of the meetingon new or increased fees or service charges. Any written request for mailed notices shall be validfor one year from the date on which it is filed unless a renewal request is filed. At least 10 daysbefore this public meeting, the agency must make data on infrastructure costs and funding sourcesavailable to the public. Notice of the time and place of the public meeting and a general explanationof the matter is to be published in accordance with Section 6062a of California Government Code,which states that publication of the notice shall occur for 10 days in a newspaper regularlypublished once per week or more. The new or increased fees shall be effective no earlier than 60days following the final action on the adoption or increase of the fees.The fee categories summarized in this report may not apply to specialized or unique developmentprojects in the City. For example, the development of a cemetery, golf course, or stadium will notfall under any of the fee categories in this report. For specialized development projects, the Citywill need to review the impacts and decide on an applicable fee based on the specific impacts.FEE ADJUSTMENTSThe fees will be automatically adjusted each year on January 1st based on the Engineering News-Record Construction Cost Index (CCI) for the San Francisco Bay Area. In addition, the fees maybe adjusted to reflect revised facility standards, receipt of funding from alternative sources (i.e.,state or federal grants), revised facilities or costs, changes in demographics, or changes to the landuse plan. A complete review of the fees must be completed every five years per CaliforniaGovernment Code but it is recommended that the fees be updated more frequently.IMPACT FEE PROGRAM ADMINISTRATIVE REQUIREMENTSAB 1600 requires the City to report fee information annually and every fifth year. Within 180 daysafter the last day of each fiscal year, the City must make available the following information fromthe prior fiscal year:Brief description of the type of fee in the account or fundAmount of the feeBeginning and ending balance in the account or fundAmount of fees collected and the interest earnedDevelopment Impact Fee Nexus StudyCityofMillbrae43April 2020 Identification of each public improvement for which fees were expended and theamount of expendituresIdentification of an approximate date by which time construction on the improvementwill begin if it is determined that sufficient funds exist to complete the projectDescription of each inter-fund transfer or loan made from the account and when eachwill be repaidIdentification of any refunds made once determined that sufficient monies have beencollected to fund fee-related projectsThe City must make this information available for public review and must present it at the nextregularly scheduled public meeting no less than 15 days after this information is made available tothe public.For the fifth fiscal year following the first deposit into the account or fund, and every five yearsthereafter, the City must make the following findings with respect to any remaining funds in thefee account, regardless of whether those funds are committed or uncommitted:Identify the purpose of the feeDemonstrate a reasonable relationship between the fee and the purpose for which it ischargedIdentify sources and amounts of funding anticipated to complete the financing of anyincomplete improvementsDesignate the approximate dates on which funding is expected to be deposited into thefee account, as neededAs with the annual disclosure, the 5-year report must be made public within 180 days after the endof the City's fiscal year and must be reviewed at the next regularly scheduled public meeting. TheCity must make these findings; otherwise, the law requires that the City refund the money on aprorated basis to the current record owners of the development projects.PROGRAMMING REVENUES WITH THE CAPITAL IMPROVEMENTPLANThe City should maintain and update its CIP to adequately plan for future infrastructure needs.The City's CIP should commit projected fee revenues and fund balances to specific projects thatare necessary to serve growth as described in this report. The City's CIP provides thedocumentation necessary for the City to hold funds in a project account for longer than 5 years, ifnecessary, to collect sufficient funds to complete a project.Development Impact Fee Nexus StudyCity of Millbrae44April 2020 FEE REPORTINGAssembly Bill No. 1843 which became effective January 1, 2020 requires that Cities make thefollowing information available on their website. This must be completed by January 1, 2021. Thefollowing information must be provided:1. A current schedule of fees, exactions, and affordability requirements imposed by the city,county, or special district, including any dependent special districts, of the city or countyapplicable to a proposed housing development project, which shall be presented in amanner that clearly identifies the fees, exactions, and affordability requirements that applyto each parcel.2. All zoning ordinances and development standards, which shall specify the zoning, design,and development standards that apply to each parcel.3. The list of information required to be compiled pursuant to Section 65940.4. The current and five previous annual fee reports or the current and five previous annualfinancial reports, that were required pursuant to subdivision5. An archive of impact fee nexus studies, cost of service studies, or equivalent, conductedby the city, county, or special district on or after January 1,2018.Any updates to the above information must be available within 30 days.Development Impact Fee Nexus StudyCity of Millbrae45April 2020 CITY COUNCILAGENDA REPORTcrQr»i&?fy0CITY OF MILLBRAE621 Magnolia AvenueMillbrae, CA 94030SUBJECT: Ordinance Adding Article XXXI"Development Impact Fees" to Title 10 Chapter 10.5 ofthe Millbrae Municipal CodeATTACHMENTS:(1) Ordinance Adding Article XXXI "DevelopmentImpact Fees" to Title 10 Chapter 10.5 of theMillbrae Municipal Code(2) Development Impact Fee Prograin Report(3) Draft Resolution of the City Council of the CityofMiIlbrae Adopting Development Impact FeesReport No. ^^f-For Agenda of: May 26, 2020Department: Community DevelopmentOriginator: - ^ ^se LimApprove4/Z^^"' ..Budget ActionYes: No: X~xw^^-Finance Review:REPORT TYPE: ACTION ^_ INFORMATIONALITEM TYPE: CONSENT _PUBLIC HEARING X EXISTING BUSINESS NEW BUSINESSRECOMMENDATION:Staff recommends that the City Council:(1) Introduce an ordinance adding Article XXXI "Development Impact Fees" to Title 10 Chapter 10.5of the Millbrae Municipal Code and waive the first reading.(2) Open a public hearing receiving public comments.BACKGROUND:Development Impact FeesThe City provides a variety of services and amenities to its residents, businesses, and visitors, such aslibrary, public safety, utilities, bicycle and pedestrian infrastructure and recreation facilities. Newresidential and non-residential development increases the demand for the services and ainenities that theCity provides, burdening existing facilities and infrastructure.The City has the authority to adopt fees to ensure that new development pays for its share of thefacilities and infrastructure necessary to provide services to that development, subject to the restrictionsset forth in the Mitigation Fee Act (GOV. Code §§ 66000 etseq.). The Mitigation Fee Act requires thatthe City make a series of findings regarding the relationship between the new development and the feesimposed, and that the amount of the fee is proportionate to the impact caused by the new development.The Mitigation Fee Act also imposes a series of accounting and reporting requirements on the City.These impact fees are one-time fmids available to fund new development's share of the capital costs ofPage 1 of 516526400.1 the services for which they were imposed. Impact fee revenue is not available to fund operating costs orexisting service deficits.On Febmary 28, 2017, the City Council adopted development impact fees for the Millbrae Station AreaSpecific Plan (MSASP) area. However, the City Council has not adopted similar fees for areas outsideoftheMSASParea.OrdinanceThe proposed ordinance establishes a framework for administration of iinpact fees consistent with theMitigation Fee Act. The ordinance sets out a protocol for adoptmg impact fees, details when the feeswill be paid, establishes exemptions and credits, implements procedures for appeals and refunds, andprovides for reporting and accounting procedures. The proposed ordinance does not impose any fees.The City Council may adopt fees by separate resolution. The resolutions imposing the fees may varyfrom the generally applicable rules set forth in the ordinance. The final fees will be published in theCity's fee schedule.ResolutionCities typically prepare a study to document the justification for their fees and support the statutorilyfindings required by the Mitigation Fee Act. On November 13, 2018, the City awarded a professionalservices agreement to Harris & Associates, Inc. (Harris) to prepare a study to support a comprehensiveset ofcitywide development impact fees. Harris has completed the Development Impact Fee Programreport (Fee Study) analyzing the impacts of new development on library, government, recreation, publicsafety, parks and mobility infrastructure.While staff has prepared a resolution imposing several fees, the attached resolution is for discussiononly. If the City Council has feedback on the fees set forth in the resolution, staff will incorporate theCity Council's feedback and return the resolution for approval at a subsequent meeting.ANALYSIS:Impact Fee ProgramImpact fees are imposed on new development only. Renovations of existing structures will generallynot require payment of impact fees, unless they intensify the existing use. Fees on most residentialprojects are charged by the unit. For most nonresidential development (including commercial, officeand industrial), the fees will be charged based on every 1,000 building square feet. For hotels, the fee ischarged by room. The ordinance grants the City Manager the discretion to set a different fee based onthe methodology in the Fee Study if a project does not fall squarely within one of the categories in theordinance.For nonresidential projects, the impact fees are due at the time of the first required building pennit. Forresidential projects, pursuant to state law, the fee is paid at the time of the final inspection or issuance ofthe certificate of occupancy, whichever occurs first.Revenues from each fee must be maintained in a separate account. The City must report every year onthe amount of fees collected and expended. Every five years, the City must revisit its findings regardingthe need for the impact fees.Page 2 of 516526400.1 Proposed FeesThe proposed program consists of the following six major components: a library fee, a generalgovernment facilities fee, a recreation services fee, a public safety fee, a park acquisition and facilitiesfee, and a mobility fee. Staff is currentlyconsidering the potential for additional fees for public art,affordable housing, and other purposes.Library: The purpose of the Libraiy Fee is to fund new library facilities or improvements to existinglibrary facilities to maintain the City's existing level of service. New residential and nonresidentialdevelopment will bring additional residents, workers, aiid visitors to the City, increasing the demand onexisting library facilities. The Library Fee is based on the cost per capita of the library assets necessaryto provide the current level of service. The proposed Library Fee is as follows:Single Family J Multifamily | Commercial | Office [ Industrial j Hotel$217$160$69$152$15$30General Government Facilities: The General Government Facilities Fee will be used to fund newgeneral governmental facilities or improvements to existing general governmental facilities that are notcovered by another impact fee to maintain the City's existing level of service. An increase in residentialand non-residential development generates additional residents and workers that increase the need forgovernment facilities to maintain the City's existing level of service. The proposed Government FacilitiesFee is as follows:Single Family | Multifamily [ Commercial | Office [ Industrial | Hotel$1,061$782$339$745$74$149Recreation Services: The Recreation Services fee is to fund new development's share of planned newrecreation facilities or improvements to existing recreation facilities. New residential and nonresidentialdevelopment will bring additional residents, workers, and visitors to the City, increasing the demand onexisting recreation facilities. The Recreation Ser/ices Fee will generate revenue to fund newdevelopment's share of planned Recreation Center, and other improvements. The proposed RecreationService Fee is as follows:Single Faniily | Multifamily | Commercial | Office [ Industrial [ Hotel$2,913$2,146$91$199$20$40Public Safety: The Public Safety Fee is to fund new public safety facilities or improvements to existingpublic safety facilities to maintain the City's existing level of service. New residential and nonresidentialdevelopment will bring additional residents, workers, and visitors to the City, increasing the demand onexisting public safety facilities. The Public Safety Fee will generate revenue to fund new public safetyfacilities or improvements to existing public safety facilities to maintain the City's existing level ofservice. The proposed Public Safety Fee is as follows:Page 3 of 516526400.1 Single Family | Multifaniily | Commercial Office Industrial Hotel$1,159$854$370$813$81$163Development within the MSASP area is already subject to a fee that includes a public safety component.Projects in the MSASP area will receive a credit against the Public Safety Fee.Park Acgyisition and Facilities: The'fee is to fund park acquisition and new park facilities orimprovements to existing park facilities to maintain the City's existing level of service. New residentialand nonresidential development will bring additional residents, workers, and visitors to the City,increasing the demand on existing park facilities. The Park Acquisition and Facilities Fee will generaterevenue to fund acquisition of parks and new park facilities or improvements to existing park facilities tomaintain the City's existing level of service. An increase in residential and non-residential developmentgenerates additional residents and workers that increase the need for park facilities to maintain the City'sexisting level of service. The proposed Park Acquisition and Facilities Fee is as follows:Single Family$54,396Multifamily$40,081Commercial$0*Office$0*Industrial$0*Hotel$0**Non-residents are typically not assessed Recreation Service and Park Acquisition and FacilitiesFees by standard practice because non-residents do not typically utilize these facilities.The City also requires dedication of parkland in connection with subdivision maps, and as part of theMSASP impact fee. Projects that pay this fee will receive a credit based on other park fees paid or propertydedicated.Mobility: The purpose of the Mobility Fee is to fund new development's share of planned pedestrian andbicycle improvements. New residential and nonresidential development will bring additional residents,workers, and visitors to the City, increasing the demand on existing mobility facilities. The Mobility Feewill generate revenue to fund the new mobility facilities or improvements to existing mobility facilitiesdetailed in the Fee Study. The Mobility Fee is based on new development's share of the planned mobilityiiTiprovements stated in the Fee Study as determined by the trip generation rate of the new development.The proposed Mobility Fee is as follows:Single Family | Multifamily | Commercial | Office | Industrial | Hotel$1,875$1,061$7,215$2,178 | $1,193 | $1,136Development within the MSASP area is already subject to a fee that includes a transportation component.Projects in the MSASP area will receive a credit against the Mobility Fee. Projects within a half mile ofa transit stop are also eligible for a discount on this fee.Administration: The Administration Fee amounting to 5% of each fee to cover legal, accounting, andother administration support as well administration cost including revenue collection, revenue and costaccounting, mandated public reporting, and fee justification analysis. The proposed Administration Feeis as follows:Single Family | Multifamily [ Commercial [ Office | Industrial | Hotel$3,081$2,254$404$204$69$76The table below provides a comparison of the proposed development impact fees for single familyresidential and multifamily residential developmemnt with seven surrounding cities in San Mateo County.Page 4 of 516526400.1 Single Fgm ilv ResidentialMulti family ResidentialAfillbrae (Proposed)$64,701San CarlosBelmontSan BrunoSouth Sail FranciscoBurlingaiTie*San MateoPaly CityAverage$62,339Millbrae (Proposed) \ $47,338San Carlos$43,916$67,665Belmont$46,635$30,269San Bmno$28,323$33,694South San Francisco | $24,409$13,262$35,677Buriingame*San Mateo$72,504Daly City$47,513Average*Burlingame Impact Fees Include Only Fire, Police and Library$9,637$24,190$72,504$37,119FISCAL IMPACT:The fees will be imposed on all future developments to pay for their fair share of capital expansion and/orimprovement. The total impact fee are as follows:$64,701$47,338Single Faniily | Multifamily | Commercial | Office | Industrial | Hotel$8,488$4,291$1,452$1,594COUNCIL ACTION:Introduce an ordinance adding Article XXXI "Development Impact Fees" to Title 10 Chapter 10.5 ofthe M'illbrae Municipal Code, waive the first reading and open a public hearing receiving publiccomments of the proposed introduction of a citywide development impact fee program.Page 5 of 516526400.1