The URL can be used to link to this page

Home My WebLink AboutFPIF/Res 06-72/Ord 1120/Legal NoticeMEET DATE CONTINUED TO. CITY OF PALM DESE ;R� PASSED TO 2ND READING FINANCE DEPARTMENT STAFF REPORT REQUEST: Consideration of a Fire Facilities Impact Mitigation Fee pursuant to the findings of a new Nexus Study. SUBMITTED BY: Paul S. Gibson, Director of Finance/City Treasurer Date: May 25, 2006 CONTENTS: Recommendation Fire Facilities Impact Fee Nexus Study Legal Notice Resolution No.06-72 Adopting Nexus Study and Setting Fee Levels Ordinance No.1120 Establishing Impact Fee Recommendation: Adopt Resolution No. 06-72 and Ordinance No.1120 adopting Nexus Study and Setting Fee Levels, establishing a Fire Facilities Impact Fee for all new residential, commercial and business park/light industrial uses. Executive Summary: In the early 1981, the City established a Fire Facilities fee at $100 per residential units and $100 per one thousand square feet of non-residential construction for purpose of fire protection sites, facilities and equipment required by the demand for services from new developments in the city. The City has been and continues to experience significant development activity, which will require the Fire department to improve on existing facilities and construct a new fire facility and purchase new fire equipment. In March 2006, the City Council selected a site to place a new fire station at Gerald Ford and Frank Sinatra east of Cook Street. In the attached, City of Palm Desert Fire Facilities Impact Fee Nexus Study, the nature of both existing and future fire facilities conditions created by commercial and residential development is analyzed pursuant to the requirement of Government Code Section 66000 (The Mitigation Fee Act). Based on the growth of the North half of the City of Palm Desert and the five minute response time of the Fire Department will require a new fire station of which we can only collect the portion attributable to the new development around the station. The revised fee would generate around $3.4 million and the City would pay for the remaining amount of $5.5 million. The study concludes that without financial assistance the City would not be able to adequately address the growing demand for fire services in the north half of the City. The Mitigation Fee Act allows the City to assess a fee on developments identified in a nexus study to help fund facility needs generated by those uses. Based on the costs of a new facility, the projected composition of future residential and commercial developments and their respective impact on fire facilities needs; the following fees are recommended: • $688.46 per low density residential dwelling unit; • $296.59 per medium density residential dwelling unit; • $176.83 per high density residential dwelling unit; • $0.22 per square foot for commercial development; • $0.20 per square foot for business park/light industrial uses; • Mixed use projects shall be assessed a blended rate based on the anticipated uses. Fees will be collected for all residential and non-residential uses at issuance of building permits. Fees will be used to fund a new fire facilities and expansion or improvements to existing facilities. Submitted By: Paul S. Gibson Director of Finance/City Treasurer / Carlos Ortega, ' ity Man CITY COUNCIL ,CTION: APPROVED �l DENIED RECEIVED OTHER MEETI DATE frS 'Q (p AYES: i S ) $Pl ei J v( 45[TY) NOES: e0 / ABSENT: 1 f 1Q... ABSTAIN: VERIFIED BY: Original on File wit 4ity Clerk's Offic RESOLUTION NO. 06-72 A RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A FIRE FACILITIES IMPACT NEXUS STUDY AND ADOPTING FIRE FACILITIES IMPACT MITIGATION FEES. WHEREAS, since its incorporation, the City has been and continues to experience significant development activity in the form of applications and proposals for new residential, commercial, and industrial land development within the City; and WHEREAS, the proposed new residential, commercial, and industrial development within the City will generate a deficiency in fire facilities, and the City is responsible for maintaining an appropriate level of service to the present and future citizens of Palm Desert; and WHEREAS, the City's existing fire facilities are inadequate to handle current and future demand and it is essential to both improve existing facilities, as well as construct a new facility in order to meet the projected increase in demand for fire services; and WHEREAS, the continued and cumulative development of the City, with the consequent increase in population and demand for the use of fire facilities, and the need cannot be met and financed from ordinary City revenues or the existing fire facilities fee; and WHEREAS, the City Council has reviewed a Fire Facilities Impact Fee Nexus Study which sets forth the reasonable relationship between the need for additional fire facilities and residential and nonresidential development, establishes a nexus between certain fees and the cost of fire facilities needed to serve such development, all in conformance with the requirements of The Mitigation Fee Act, California Government Code Section 600 et seq.; and WHEREAS, the City Council of the City of Palm Desert did hold a duly noticed public hearing on May 25, 2006, to consider the Fire Facilities Impact Mitigation Fee. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, Califomia, DOES HEREBY DETERMINE, ORDER AND RESOLVE, as follows: SECTION 1. The City Council hereby adopts the Fire Facilities Impact Mitigation Fee amounts set forth below: • $720.81 per low density residential dwelling unit; • $310.52 per medium density residential dwelling unit; • $185.14 per high density residential dwelling unit; Resolution No. 06- 72 • $0.22 per square foot for commercial development; • $0.21 per square foot for business park/light industrial uses; • Mixed use projects shall be assessed a blended rate based on the anticipated uses. SECTION 2. Unless the City Council adopts a resolution setting forth different fee amounts, these fees shall be automatically updated pursuant to Section 3.45.030.0 of the Palm Desert Municipal Code. PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City Council held on this day of May 2006, by the following vote:: AYES: NOES: ABSENT: ABSTAIN: JIM FERGUSON, MAYOR ATTEST: RACHELLE D. KLASSEN, City Clerk City of Palm Desert, California ORDINANCE NO. 1120 AN ORDINANCE OF THE PALM DESERT CITY COUNCIL UPDATING THE FIRE FACILITY IMPACT FEE APPLICABLE TO NEW COMMERCIAL, RESIDENTIAL, AND INDUSTRIAL DEVELOPMENT WITHIN FIRE SERVICE AREA NO. 71 WHEREAS, the City of Palm Desert was incorporated in 1973; and WHEREAS, since its incorporation, the City has been and continues to experience significant development activity in the form of applications and proposals for new residential and commercial land development within the City; and WHEREAS, the proposed new residential and commercial development within the City will generate a deficiency in fire facilities, and the City is responsible for maintaining an appropriate level of service to the present and future citizens of Palm Desert; and WHEREAS, the City's existing fire facilities are inadequate to handle current and future demand and it is essential to both improve existing facilities, as well as construct a new facility in order to meet the projected increase in demand for fire services; and WHEREAS, the continued and cumulative development of the City, with the consequent increase in population and demand for the use of fire facilities, and the need cannot be met and financed from ordinary City revenues; WHEREAS, the most practical and equitable method of paying for such needed facilities is to impose a fee upon new development within Fire Service Area 71 and the payment of such a fee enables the City to fund fire facilities improvement program to provide such facilities as they are required and demanded; that when a development pays the Development Impact Fee established by this policy, the City Council will be able to find that all necessary fire services will be available concurrent with the need and, in the event such finding cannot be made, the City Council will be required to disapprove the development as being inconsistent with the General Plan; and WHEREAS, in 1989, the California Statute took effect which governs the establishment, increase, and imposition of fees levied by local agencies as a condition of development project approval "for the purpose of defraying all or a portion of the cost of public facilities related to the development project;" and WHEREAS, public facilities are defined in the statute to include "public improvements, public services, and community amenities;" and ORDINANCE NO. 1120 WHEREAS, these requirements are found in the Mitigation Fee Act (Government Code Sections 66000 et seq.) and are commonly known as "AB 1600" requirements after the 1987 Assembly Bill in which they originated; and WHEREAS, pursuant to Section 66001, an agency establishing, increasing, or imposing impact fees must make findings to: 1. Identify the purpose of the fee; 2. Identify the use of the fee; 3. Determine that there is a reasonable relationship between: a. The use of the fee and the type of development on which it is imposed; b. The need for the facility and type of development on which the fee is imposed; c. The amount of the fee and the public facility cost attributable to the development on which the fee is imposed; and WHEREAS, the adoption of this fee program and procedures as set out in this Ordinance is found to be a matter of local concern to implement in a timely manner; and NOW, THEREFORE, the Palm Desert City Council does hereby find, determine and ordain as follows: Section 1. The report entitled "Fire Protection Impact Fee Study" ("Fee Study") dated June _, 2006 accurately states the City's need of and lack of ability to provide for the described the facilities and services to serve new development in the Fire Service Area, as defined in the Fee Study. The Fee Study shows that there is a reasonable relationship between the use of the fee and the projected types of development; the need for the new Fire Station and appropriate upgrades to existing facilities by the projected types of development pursuant to the City's General Plan; and the amount of the fee and the proportionate facility cost related to the development. Section 2. As set forth in detail in the Fee Study, in order to allow development to proceed in an orderly manner, while ensuring that all new development is consistent with the General Plan, it is necessary and appropriate to approve the following Development Impact Fee to be imposed upon new development in the Fire Service Area, as defined in the Fee Study. Said fee will assist the City in funding the construction of the new Fire Station as needed. Section 3. As described in the Fee Study, the Mitigation Fee Act contains requirements for establishing, increasing, and imposing impact fees. Said fee must relate to the effect created by development, and may not exceed the reasonable cost of providing the public service. The Fee Study exhibits the relationship between the overall cost of providing such a service and the proposed fee. 2 ORDINANCE NO. 1120 Section 4. Prior to the approval of any building permit, the applicant shall pay or agree to pay a Development Impact Fee in the following amount for the type of development: a. Commercial (all types) — $0.22 per square foot b. Industrial/Office Park — $0.21 per square foot c. Residential — Low Density: $720 per unit d. Residential — Medium Density: $310 per unit e. Residential — High Density: $185 per unit Section 5. All proceeds from fees collected pursuant to the Development Impact Fee Policy shall be paid into the established fire facility fund to be established by the City. Said fund or funds shall be used only for the purpose of acquiring, building, building, improving, and expanding the Fire Facilities analyzed in the Fee Study. Designation of expenditures of funds available from the fire facility fund shall be made by the City Council in the context of approval of the City's annual operating and capital improvements budget of at such other time as the City Council may direct. Section 6. Excluded from the fees imposed by policy are the following: a. Any person when imposition of such fee upon that person would be in violation of the constitution and laws of the United States or the State of California. b. The construction of any facility by the City of Palm Desert, the United States, or any department or agency thereof or by the State of California or any department, agency, or political subdivision thereof. Section 7. The City hereby determines that the Development Impact Fee is not intended to be the exclusive method of construction and upgrade of fire facilities and the City will consider alternative proposals to provide needed infrastructure to particular development and, to the extent such alternative proposal is discretionary approved by the City Council, the developer shall receive a fair and equitable credit against payment of the Impact Fee. Any developer seeking alternative methods of installation shall submit such proposal to the City at the time of submittal of an application for development. Section 8. If any section, subsection, sentence, clause or phase of this resolution is for any reason held to be invalid, such holding or holdings shall not affect the validity of the remaining portions of this Resolution. The City Council declares that it would have passed this Resolution and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phases be declared invalid. In determining the amount of the Impact Fee, the City Council has been guided by the Fee Study mentioned in paragraph one hereof. In the event any category of such fee shall be declared invalid, such determination shall not affect the validity of any other category. The City Council further finds, declares, and determines that the Impact Fee on all remaining valid fee categories shall be 3 ORDINANCE NO. 1120 increased by the amounts of the remaining valid fee categories shall not be so increased over and above the amount recommended by said report for each category. Section 9. The Community Development Director shall be responsible for the administration and enforcement of this policy. His decision may be appealed to the City Council whose decision shall be final. The City Manager is hereby authorized to execute necessary agreements for the administration of this policy. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the day of 2006, by the following vote, to wit: Ayes: Noes: Absent: Abstain: ATTEST: Rachelle D. Klassen,. City Clerk City of Palm Desert, California 4 JIM FERGUSON, MAYOR NOTICE OF PUBLIC HEARING REGARDING FIRE FACILITIES FEE Notice is hereby given by the CITY OF PALM DESERT that a PUBLIC HEARING on the following item will be held before the PALM DESERT CITY COUNCIL AT THE CIVIC CENTER COUNCIL CHAMBERS located at 73-510 Fred Waring Drive, Palm Desert, California on Thursday, May 25, 2006 at 4:00 p.m. SUBJECT: A Public Hearing to consider the adoption of a fire facilities fee for residential and non-residential uses. Based upon a Fire Facilities Impact Fee Nexus Study, the proposed fire facilities fee would be as follows: $0.20 per square foot for business park/light industrial uses; $0.22 per square foot for commercial uses; $688 per unit for low density residential uses; $297 per unit for medium density residential uses; and $177 per unit for High density residential uses. If adopted, the fee would apply to all new development in these categories, with certain limited exceptions. ADDITIONAL INFORMATION: Pursuant to the California Government Code, please take notice as follows: If you challenge the action described in this written notice in court, you may be limited to raising only those issues you or someone else raises at the public hearing, or in written correspondence delivered to the City of Palm Desert at, or prior to, the Procedure Section 1094.5. The City of Palm Desert complies with the Americans with Disablities Act. If you require reasonable accommodations for this meeting, contact the City Clerk's Office at (760) 346-0611 ext. 481. Rachelle D. Klassen, City Clerk City of Palm Desert, California CITY OF PALM DESERT NOTICE OF PUBLIC HEARING REGARDING FIRE FACILITIES FEE Notice is hereby given by the CITY OF PALM DESERT that a PUBLIC HEARING on the following item will be held before the PALM DESERT CITY COUNCIL AT THE CIVIC CENTER COUNCIL CHAMBERS located at 73-510 Fred Waring Drive, Palm Desert, California on Thursday, May 25, 2006 at 4:00 p.m. SUBJECT: A Public Hearing to consider the adoption of a fire facilities fee for residential and non-residential uses. Based upon a Fire Facilities Impact Fee Nexus Study, the proposed fire facilities fee would be as follows: $0.20 per square foot for business park/light industrial uses; $0.22 per square foot for commercial uses; $688 per unit for low density residential uses; $297 per unit for medium density residential uses; and $177 per unit for High density residential uses. If adopted, the fee would apply to all new development in these categories, with certain limited exceptions. ADDITIONAL INFORMATION: Pursuant to the California Government Code, please take notice as follows: If you challenge the action described in this written notice in court, you may be limited to raising only those issues you or someone else raises at the public hearing, or in written correspondence delivered to the City of Palm Desert at, or prior to, the Procedure Section 1094.5. The City of Palm Desert complies with the Americans with Disablities Act. If you require reasonable accommodations for this meeting, contact the City Clerk's Office at (760) 346-0611 ext. 481. Date: May 11, 2006 &HE:=QLLE D. KLASSEN, ITY CLERK CITY OF PALM DESERT, CALIFORNIA CIiY Of PRIM OESERI 73-5 i o FRED WARING DRIVE. PAL`a DESERT, CALIFORNIA 92260-2378 TEL:76o 346—o6ii FAQ: 760 340-0574 infoC?Ipalm-deser r.org NOTICE OF PUBLIC HEARING REGARDING FIRE FACILITIES FEE NOTICE IS HEREBY GIVEN by the CITY OF PALM DESERT that a PUBLIC HEARING on the following item will be held before the PALM DESERT CITY COUNCIL AT THE CIVIC CENTER COUNCIL CHAMBER located at 73-510 Fred Waring Drive, Palm Desert, California on Thursday, May 25, 2006, at 4:00 p.m. SUBJECT: A Public Hearing to consider the adoption of a fire facilities fee for residential and non-residential uses. Based upon a Fire Facilities Impact Fee Nexus Study, the proposed fire facilities fee would be as follows: $0.20 per square foot for business park/light industrial uses; $0.22 per square foot for commercial uses; $688 per unit for low density residential uses; $297 per unit for medium density residential uses; and $177 per unit for High density residential uses. If adopted, the fee would apply to all new development in these categories, with certain limited exceptions. ADDITIONAL INFORMATION: Pursuant to the California Government Code, please take notice as follows: If you challenge the action described in this written notice in court, you may be limited to raising only those issues you or someone else raises at the public hearing, or in written correspondence delivered to the City of Palm Desert at, or prior to, the Procedure Section 1094.5. The City of Palm Desert complies with the Americans with Disabilities Act. If you require reasonable accommodations for this meeting, contact the City Clerk's Office at (760) 346-0611, ext. 304. Dated this 11 th day of May, 2006. e t4celle D. Klassen, City Clerk City of Palm Desert, California arrca wtwa wo fiIIY Q[ P 0 1 M 0[SIR1 73-5i0 FREI) WARING DRIVE PAI.m DESERT, CALIFORNIA 92260-2578 Mr. Fred Bell, Executive Director Building Industry Association of Southern California Desert Chapter 77-570 Springfield Lane Suite E Palm Desert CA 92211 n�/ City of Palm Desert . _ _ -. - . �� . . : � . May 2006 Paim Desert RedevelopmentAgency 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 � RSG INTELIIGENT COMMUNI7Y DEYEIOPMENT ROSENOW SPEVACEK GROUP INC. 309 West 4th Street Santa Ana, California 92701-4502 Phone: (714) 541-4585 Fax: (714) 541-t 175 E-Mail: infora?webrsca.com City of Palm Desert Fire Protection Impact Fee Study Purposeof the Study ...........................................................................................1 MitigationFee Act ................................................................................................1 City of Palm Desert Fire Protection Services .......................................................3 ExistingFire Stations .................................................................................3 Proposed Fire Facilities Improvements ......................................................4 Proposed Fire Service Area .......................................................................4 Methodology........................................................................................................7 Future and Existing Development within the Fire Service Area ..................7 Facility Cost to Serve Growth .....................................................................8 ProjectedRevenue ..................................................................................10 Implementation..................................................................................................12 CouncilAdoption ................................................................................................12 Impositionof Fees .............................................................................................12 Collectionof Fees ..............................................................................................14 Exceptions, Reductions, and Waivers ................................................................15 Creditfor Improvements Provided by Developers ..............................................15 Credit for Existing Development .........................................................................16 Earmarking of Fee Revenue ..............................................................................16 Reporting...........................................................................................................16 Costsof Implementation ....................................................................................17 Annual Update of Capital Improvement Plan .....................................................17 The City of Palm Desert ("City") has retained the Rosenow Spevacek Group Inc. ("RSG") to prepare a Fire Protection Impact Fee Study ("Study") to analyze the direct and cumulative impacts of development on the City's future fire facilities, and to calculate appropriate fees based on that analysis. This Study documents the data, methodology, and results of the fire protection impact fee ("Impact Fee") to mitigate the fiscal burden of new development on the quality of services provided to the community. The methods used to calculate the Impact Fee in this Study are intended to satisfy all legal requirements pursuant to the Mitigation Fee Act (Govemment Code 66000 et seq.). Because the passage of Proposition 13 in 1978 resulted in a decline in revenues, local govemments have increasingly relied on impact fees to mitigate the effects on public services created by new development. In response to these changes in spending behavior, the Legislature passed Assembly Bill 1600 ("Mitigation Fee Act") in 1987, stipulating that a local agency may establish development impact fees for the purpose of defraying all or a portion of the cost of public facilities related to development projects. Prior to the implementation vf the Califomia Mitigation Fee Act, local government agencies had been collecting impact fees for many years. Impact fees, originally called exactions, were first adopted in the 1920's by cities seeking new infrastructure financing alternatives. In 1949, California courts first adopted the "reasonable relationship" test between a projecYs conditions of approval and development impacts. The concept of exactions expanded in the 1960's with the enactment of the Quimby Act, which authorized either the dedication of land or payment of in-lieu fees for the development of pa rks. In the past, cities have been able to subsidize new development by installing infrastructure, or by charging impact fees that did not pay for the entire cost of the infrastructure necessitated by the project. Today, because of the rising costs of land and construction, local governments find themselves unable to afford the infrastnacture improvements the development will need. As a result, cities are requiring developers to carry the burden of these costs, and in turn, the consumer. The Mitigation Fee Act contains requirements for establishing, increasing, and imposing impact fees. Since a fee is voluntary, it must be reasonably related to the cost of providing the service by the local agency. If a development impact fee does not relate to the effect created by development, o� exceeds the reasonable cost of praviding the public service, then the fee may be declared a special tax, and must then be subject to a two-thirds voter approval. The Mitigation Fee Act also contains provisions that govern the collection and expenditure of fees, and require annual reports and periodic re- evaluation of impact fee programs which will be detailed in the Implementation Section of this Study. CIiY OF PALM DESERT MAY 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 1 Requined findings pursuant to the Mitigation Fee Act in any action establishing, increasing, or imposing a fee as a condition of approval of a devebpment project by a local agency on or after January 1, 1989, include the following: 1. Identify the purpose of the fee; 2. Ident'rfy the use of the fee; and 3. Determine that there is a reasonable relationship between: a. The use of the fee and the development type on which it is imposed; b. The need for the facility and the type of development on which the fee is imposed; and c. The amount of the fee and the facility cost attributable to the development project. On August 26, 2004, the Palm Desert City Council passed �rdinance No. 1073, authorizing the collection of a development impact fee for the provision of fire services. The fire protection fund has been established for providing fire protection sites, facilities, and equipment required by the demand for services from new developments in the City. The current fee for the fire protection fund is $100 per dwelling unit, and $100 per 1,000 square feet of non-residential development. The goal of this Study is to update the applicability of this Impact Fee, as additional fire services are required by the new development occurring within the Fire Service Area. Currently, the Riverside County Fire Department maintains a five-minute response time standard within the City to any fire/medical emergency, and holds a Class 3 Insurance Services Offices ("ISO") Fire Insurance Rating. The five minute response time is a nationally recognized standard per the National Fire Protection Association. According to the City's General Plan, a major goal of emergency vehicles is to maintain a five-minute response time over 95% for all priority one engagements. While this goal is higher than the National Fire Protection Association standard of 90% within five minutes, ISO considers this element as part of their criteria in the evaluation of fire companies, furthering the need for decreased response times. With signfficant growth expected throughout the northern portion of the City, the fire facilities, as they are currently situated, will find it increasingly difficult to maintain the five-minute response time to priority one engagements. Continued growth and density forecasts indicate a steady increase in the volume of calls for service, thereby adversely affecting fire service response time. It has been determined that an appropriate solution to maintain the current five minute response standard would be to allocate additional resources in the direction of the City's forecasted growth. This area of the City, the proposed Fire Service Area, is demonstrated in Map 1, located on page 6 of this Study. Fire facilities improvements are needed to mitigate the impacts of expected development in the City, prevent the deterioration of public services, maintain response time goals, and ensure the provision of efficient, high quality fire protection for all types of development and socio-economic segments of the community. In doing so, the City will be able to effectively and efficiently serve the community, and positively respond to the current needs as well as the anticipated growth of the community. New development will CITY OF PALM DESERT MAY 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 2 benefit greatly from a new fire facility, and the burden of such new development will be mitigated in part by the payment of the Impact Fee. City of Palm Desert Fire Protection Services Fire protection services are provided to the City of Palm Desert by the Riverside County Fire Department, which contracts with the Califomia Department of Forestry. The service contract for fire protection is entered into jointly by the member jurisdictions of the Cove Communities Service Commission, which includes the cities of Palm Desert, Rancho Mirage, and Indian Wells. Each city has access to the services provided by fire stations in the member cities, creating a Regional Fire Protection Program. This allows fire stations to actively support one another regardless of jurisdictional boundaries. When an emergency call is received, the station that is physically closest to the emergency will respond, even if the emergency is located outside the station's o�cial jurisdiction. This provides the communities with the most effective and efficient method of emergency response, and allows for the shared use of specialized equipment and personnel between neighboring communities. The cost of protection to each city is based on the city's total assessed value. The City of Palm Desert funds it share of fire protection costs using revenues colleded under the Proposition A Fire Tax, Fire Fees, and transfers from the General Fund. Existing Fire Stations The Riverside County Fire Department maintains three fire stations within the incorporated boundaries of the City of Palm Desert. Four stations also exist within its sphere of influence and expanded General Plan Planning Anea. Station No. 33 is located on Town Center Way, just south of Fred Waring Drive. Station No. 33 is staffed by a total of twenty-four crewmembers, including the Battalion Chief Officer. Equipment at Station No. 33 includes one engine staffed by three people per day; one ambulance staffed by two people per day; one company truck staffed by four people per day; and one reserve truck, which serves as a back-up vehicle when other equipment is unavailable. Station No. 67 is located on Mesa View Drive and is staffed by twelve crewmembers, five of which are on duty each day. Equipment at Station No. 67 includes one engine staffed by three people per day and one ambulance that is staffed by two people per day. Station No. 71 is located at the southwest comer of Portola Avenue and Country Club Drive. This station serves as the administrative hub for the Palm Desert Volunteer Fire Company, which currently includes twelve volunteers, but may include up to twenty-five. The station is staffed by a total of twelve crewmembers, five of which are on duty each day. Equipment in this station includes one engine, which is staffed by three people per day; one ambulance staffed by two people per day; one reserve engine that functions as a back-up unit; and one Breathing Support Unit that is staffed by volunteers. Station 71 will be renovated after the completion of a new fine facility to include improvements to the living and office areas, apparatus bay, and exhaust removal system. CITY OF PALM DESERT MAY 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 3 Proposed Fire Facilities Improvements During the FY 2005-06 budget discussions, the Palm Desert City Council directed staff to explore the option of constructing a new fire station in the northem portion of the City, in order to meet the needs of the development of new commercial, residential, and resort properties, as well as the expanding California State University. County Fire officials and staff initiated discussions on a suitable site for the proposed station, as there are various Redevelopment Agency properties in this area. Constructing a new station in the City is pertinent for emergency medical services because of the various planned developments in the area. Based on the Emergency Medical Service ("EMS") best response time standards of 3-6 minutes for optimal patient survivability, this new station would efficiently serve the community in this region by maximizing rescue potential, increasing the ability to combat fires, and decreasi�g property damage. The following table lists existing fire stations, future fir� stations, and fire facilities improvements planned for the City. Land acquisition cost is based on the current market rate of vacant property in Palm Desert as of the time of this Study. Facility construction costs were provided by the County of Riverside based on recent fire stations built throughout the County. TABLE 1 CITY OF PALM DESERT EXISTING AND FUTURE FIRE FACILITIES AND EQUIPMENT Vehicles and Station Building Value/1 Land Valuel2 Apparatus /3 Total Value Fire Station 33 $887,080 $353,808 $599,272 $1,840,160 Fire Station 67 $583,707 $665,597 $599,272 $1.848,576 Fire Station 71(Current) $708,153 $485,873 $680,500 $1,874,526 New Fire Station $8,000,000 $168,000 $630,000 $8,798,000 Total 510,178,940 $1,673,278 52,509,044 $14,361,262 1J Building cost based on historical building cost. 2/ Land cost based on current market value of vacant land in Palm Desert. 3/ Vehicle and apparatus costs were derived from a total equipment list for the three existing stations. Proposed Fire Service Area According to GIS data, the proposed Fire Service Area encompasses approximately 4,076 acres of commercial, residential, hotel and resort, office, public, and undeveloped uses. The Fire Service Area is generally bounded by the City limits and Interstate 10 to the north, EI Dorado Drive to the east, Country Club Drive to the south, and Monterey Avenue to the west. The boundaries of the Fire Service Area are illustrated in Map 2, located on page 11 of this Study. According to the General Plan and Land Use Element (2004), most of the vacant land within the City's limits available for coordinated master planning and development is 4imited primar94y to the northem portions of the City, particuiarly in the University Park Planning Area. University Park extends south of the US lnterstate-10/Union Pacific CITY OF PALM DESERT FIRE PROTECTION IMPACT FEE STUDY MAY 2006 PAGE 4 Railroad corridor and is bounded on the east by Cook Street, on the west by Monterey Avenue and on the south by Frank Sinatra Drive. Major influences on future development include the construction of the Palm Desert campus of the Califomia State University, residential resort development, and regional commercial development in the viciniry of the I-10. The General Plan and Land Use Element further indicates that development of the new Califomia State University campus on Cook Street and a branch of the University of Califomia Riverside Gary Anderson Graduate School of Business, will act as important catalysts for other land development ventures in the planning area. Important opportunities for commercial synergies are anticipated with the buildout of the University Campus and facilities. A fu11 range of commercial development, including entertainment, dining, nightclubs, and other retail are expected along the Cook Street corridor, and will provide the City with another dynamic district supported by local residential, tourist and resort development, and the university campuses. This Study will consider the direct and cumulative impacts of new development within the proposed Fire Service Area, on the City's Fire Facilities and calculate the appropriate Impact Fee for the fair share cost to new development. The following section details the methodology utilized to create the appropriate Impact Fee for new development in the construction of the new fire facility. CITY OF PALM DESERT FIRE PROTECTION IMPACT FEE STUDY MAY 2006 PAGE 5 City of P�Im Desert - Proposed Fire Service Area 1�/�r,• � � �I;,-� . i r;, .,,, ?roposr� Nwv Frt S•�'�on � Fr��lc 5'wtrs �• Rancho Mirage =�� , =Fe 5•.atic� No. ;1 co�n,^y Club �r'�ve.r I �a:o�a k�n.�e � J.._.-J__. �...y.,.�_ � -{'d �:39C'1 hC. : � T7h'1 CM1'fr� �%�: ��£L �Y13f�'1`' �'I-�_!6 � .: •T ,, - �.. �. r - �• �.. �� ~ � l �� tiT � _ _ :_'� '` �' �"' �..� 1 � ;►��ri �� , ; � ::' - r�� i:i i�� - _twi � S � __ _ iw - _:�� : . � " %ii�?rl�� . � � . -'_'_ ' �"'....� '-1�] ■�.� _ ,�!!!iiFiH . � �rl�l i,^2..;,�-��•. y:_•'+1.''= f4.._.�� _ .. �i�i, � � � ' { -iYJ ��_ J � a� ��. ; _ .Y,. _ •�. � � =no�oaer� Frs �eroic6 Area � � i� •%. .� ,...... , ,.�.., . ..,.....,. . U3?! : �3 7 ° fAkt ,.,.-. .��. ....�� ,�.... CITY OF PALM DESERT MAY 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 6 This section of the Study calculates the Impact Fee for the new fire department facilities and equipment. In order to calculate the Impact Fee, it is essential to specify formulas that quantify the relationship between development and the need for facilities. In these formulas, demand variables are used to repr�esent the effect of various types of development on the need for fire services. In the case of providing fire services, the most important factor in maintaining the appropriate level of service for the Fire Servioe Area is the potential development of the area served. If all future developed acreage was included in the cost allocation forrnula, a portion of the cost for fire station facilities would be allocated to parks, schools, and other public facilities. However, since those public facilities will be constructed to serve future private development, their fir�e protection needs are also attributable indirectly to future private development. To reflect this assumption, the future acreage devoted to those uses will not be included in the cost allocation of fire facilities. This approach is utilized in this Study because fir�e services are supported by the entire system of facilities and equipment, and it is not possible to identify certain facilities or apparatus that serve future development as opposed to existing development. Using this method ensures that both existing and future development share in the capital costs for fire protection in proportion to the demand they create. The Impact Fee assessed to new development within the proposed Fire Service Area shall be used only to finance the fair share cost of the Fire facilities as identified by City Staff. These costs include land, construction, fire apparatus and equipment, and other related capital improvements.' According to Califomia Govemment Code 65913.8, this fee may not include the maintenance or operation of an improvement when the fee is required as a condition of approvai of a development project. Future and Existing Development within the Fir+e Sewice Area The first step in calculating the Impact Fee is determining the existing development versus the amount of new development anticipated in the Fire Service Area. Utilizing estimates from City Staff, Table 2 summarizes existing developed land within the Fire Service Area. According to City Staff estimates, there are 1,869 acres of developed commercial, residential, and industrial land within the 4,076 acre proposed area, with an additional 1,534 acres of development expected in the future.2 In addition, there are 883 acres of open space and public facilities within the area. Map 2 on page 11 displays the developed acreage within the Fire Service Area per the General Plan and Land Use Element (2004). ' Estimates for the new 11,000 square foot facility include a dual bedroom design and exercise room, individual unisex bathrooms with showers, administrative offices, four bays with a climate controlled storage building, exhaust evacuation system, commercially equipped kitchen, oversized hose rack, and covered parking. ' These estimates do not include roads. CITY OF PALM DESERT FIRE PROTECTION IMPACT FEE STUDY MAY 2006 PAG E 7 TABLE 2 CITY OF PALM DESERT - PROPOSED FIRE SERVICE AREA EXISTIUG LAND llSE AND DEVELOPMENT Development Developed Land Use Units Units Acreage Commercial Community square feet 259,182 24 Office Professional square feet 96,921 9 Regional square feet 1,024,749 94 Resort square feet 884,790 145 Vacant square feet 6,395.048 61� Subtohal Commercial 8,660,690 882 Industrial Industrial/Business Park Vacant Subtotal Industrial square feet 391,496 36 squase ieet 2,Q69,644 190 2,461,140 226 Residential Low-Density Medium-Density High-Density Vacant Subtotal Residential Mixed Use Open Space Parks Private Public Reserves Subtotal Open Space Public Facilities Schools University Quasi-Public Faalities Subtotal Public Facilities TOTAL ACREAGE Facility Cost to Serve Gcowth dwelling units dwelling units dwelling units dwelling units acreage acreage acreage acreage acreage acreage acreage 4.146 1,325 127 26 0 0 0 714 4,273 2,065 0 20 0 571 0 79 0 19 669 0 13 0 192 0 9 214 4,076 in order to determine the appropriate fee to charge to new development, the total potential future build out estimates were obtained from Ciry Staff. According to this data, approximately 62.3% of the total acreage, or 2,752 acres, is either developed or open space, as demonstrated in Table 4. Because the Impact Fee must be based on the total demand created by the new development, 37.7% of the eligible fire protection facility costs will be assigned to future development (1,534 acres) in this analysis.3 By utilizing this method, the tota{ cost of the new fire station ($8,798,000) and Fire Station 71 renovation ($150,000) were divided by the total demand created by new development to calculate a cost per acre of demand, as demonstrated in Table 3. This table shows that ' This dces not include the development ot the Calitornia State University, San Bernardino campus. CITY OF PALM DESERT FIRE PROTECTION IMPACT FEE STUDY MAY 2006 PAGE 8 37.7% of the total cost of the fire facilities improvements, or $3.37 million, will be attributed to the 1,534 acres of new development, at a cost of $2,195 per net acre. TABLE 3 CITY OF PALM DESERT - PROPOSED FIRE SERVICE AREA FIRE FACILITY COST PER ACRE Construction Fire Service Cost Per Net Cost Area Acres Acre Fire Station 71 Renovation $150,000 4,076 $37 New Fire Station $8,798,000 4,076 $2,158 Subtotal $8,948,000 4,076 $2,195 Servfce Costs Attrtbutable to New Development $3,367,574 1,534 $2,195 Subsequently, this cost per net acre is multiplied by the total acres per unit of new development in each land use category, in order to arrive at a fee per unit of new development, as demonstrated in Table 4. All commercial development, including community, office professional, regional, resort, and mixed-uses, have been grouped together in one category. The recommended fee per square foot of commercial development is $.22, and $.20 per square foot for industrial/business park development. For residential development, these fees range from $176.83 for each unit of high density residential development, to $688.46 per each unit of low density housing developed. Although the development of the Califomia State University, San Bemardino campus will generate significant demand for fire services, it will not be charged a development impact fee, due to its public nature. Since inflation is not included within these calculations, the City may wish to identify appropriate inflation indexes in the implementing ordinance and resolution and allow an automatic inflation adjustment to the Impact Fee annually. TABLE 4 CITY OF PALM DESERT - PROPOSED FIRE SERVICE AREA FIRE IMPACT FEE PER LANDUSE CATEGORY Not Yet Not Yet Acres Per Development Developed Developed Unit of Cost Per Fee Per Land Use Units Units Acres Development Acre Unit Commercial square feet 6,395,048 630 0.0000985 $2,195 $0.22 Industrial square feet 2,069,644 190 0.0000918 $2,195 50.20 Residential Lcr�n� Deruity dwelling units 507 159 0.3136095 52,195 $688.46 Medium Density dwelling units 2,376 321 0.1351010 $2,195 5296.59 High Density dwelling units 2,905 234 0.0805508 $2,195 $176.83 TOTAL 1,534 S2,195 CITY OF PALM DESERT FIRE PROTECTION IMPACT FEE STUDY MAY 2006 PAGE 9 Projected Revenue Table 5 demonstrates the totaf revenue to be expected from the implementation of the Impact Fee, according to projected build-out estimates given by the City. Section 66005 of the Govemment Code stipulates that the Impact Fee shall not exceed the estimated reasonable cost of providing the service or facility for which the fee is imposed. The City of Palm Desert can expect to receive approximately $3.37 million from the implementation of an Impact Fee to assist in the funding of the fire facilities upgrades. This method implicitly assumes that the entire new service demand of the facilities will be absorbed by the new development 4 TABLE 5 CITY OF PALM DESERT - PROPOSED FIRE SERVICE AREA PROJECTED IMPACT FEE REVENUE FROM FUTURE DEVELOPMENT Development Fee per Unit of Units to Be Impact Fee Land Use Units Development Developed Revenue Commercial square feet $0.22 6.395,048 $1,383,032 Industrial Residential Low Density Medium Density High Density TOTAL square feet dwelling units dwelling units dwelling units S0.20 2,069,644 $688.46 507 $296.59 2,376 $176.83 2,905 $417,105 ' This dces not include open space and public facilities. CITY OF PALM DESERT FIRE PROTECTION IMPACT FEE STUDY $349,051 $704,688 5513,698 53,367,574 MAY 2006 PAGE 10 City of Palm Desert - Fire Service Area - Existing Land Use Map 2 /� N .,.�..�.. �,..�,.�....�.�.o....,� - IndustriaVOffice - Commercial Single Family Residential � Timeshare Estate Vacant Mobile Home ;,'�,�; Residernial - Mufti-Famity CITY OF PALM DESERT FIRE PROTECTION IMPACT FEE STUDY MAY 2006 PAGE 11 0 02 Oa OBMies �'j,�„!� I Council Adoption On August 26, 2004, City Council adopted Ordinance No. 1073 for the collection of fire facility fees for new development. Should City Council choose to adopt the proposed fee schedule and service area to fund future fire facilities, the City must comply with Califomia Govemment Code Sections 66016 through 66018 by: ■ Sending a Notice of Public Hearing at least 14 days prior to the hearing to any party that has submitted a written request for such a notice. Have this Study and supporting documentation available for review by the public at least 10 days prior to the hearing; ■ Hold a public hearing to consider adoption of the Impact Fee schedule; � Adopt an implementing resolution to establish the City's authority to impose the proposed fee and automatically adjust the fee annually for inflation, and adopt a resolution to set the fee based on the proposed fee schedule; ■ Begin collecting the fee no sooner than 60 days following adoption of the ordinance and resolutron. � Create a separate Fire Facilities Fund for revenues collected by the implementation of the Impact Fee. In addition to the obligations listed above, if the City should decide to implement the proposed Impact Fee, it is recommended that the Impact Fee would be collected at the time of building permit issuance. The City should also identify other funding sources to complement impact fee revenues to fully fund planned facilities. Govemment Code 66020 requires that the City, at the time it imposes an impact fee provide written statement of the amount of the fee and a written notice of a 90�iay period during which the imposition of the fee can be protested. Failure to protest imposition of the fee during that period may deprive the fee payer of the right to subsequent legal challenge. Govemment Code 66022 provides a separate procedure for challenging the establishment of an impact fee. Such challenges must be filed within 120 days of the enactment. fmposition af Fees Pursuant to the Mitigation Fee Act, when the City imposes an impact fee upon a specified development project, it must make findings to: Identify the purpose of the fee; 2. Identify the use of the fee; and 3. Determine that there is a reasonable relationship between: a. The use of the fee and the development type on which it is imposed; b. The need for the facility and the type of development on which the fee is imposed; and CITY OF PALM DESERT MAY 20Q6 FIRE PROTECTION IMPACT FEE STUDY PAGE 12 c. The amount of the fee and the facility cost attributable to the development project. When considering the creation of an ordinance and resolution for the implementation of the Impact Fee developed in this Study, the findings could be stated as follows: The report entitled "Fire Protection Impact Fee Study" ("Fee Study") dated May _, 2006 accurately states the City's need of and lack of ability to provide for the described the facilities and services to serve new development in the Fire Service Ar�ea, as defined in the Fee Study. The Fee Study shows that there is a reasonable relationship between the use of the fee and the projected types of development; the need for the new Fire Station and appropriate upgrades to existing facilities by the projected types of development pursuant to the City's General Plan; and the amount of the fee and the proportionate facility cost related to the develvpment. 2. As set forth in detail in the Fee Study, in order to allow development to proceed in an orderly manner, while ensuring that all new development is consistent with the General Plan, it is necessary and appropriate to approve the following Development Impact Fee to be imposed upon new development in the Fire Service Area, as defined in the Fee Study. Said fee will assist the City in funding the construction of the new Fire Station as needed. 3. Mitiaation Fee Act. As described in the Fee Study, the Mitigation Fee Act contains requirements for establishing, increasing, and imposing impact fees. Said fee must relate to the effect created by development, and may not exceed the r�easonable cost of providing the public service. The Fee Study exhibits the relationship between the overall cost of providing such a service and the proposed fee. 4. Development lmpact Fee Policv Amount. Prior to the approval of any building permit, the applicant shall pay or agree to pay a Development Impact Fee in the following amount for the type of development: a. Commercial (all types) —$0.22 per square foot b. lndustrial/Office Park —$0.20 per square foot c. Residential — Low Density: $688 per unit d. Residential — Medium Density: $297 per unit e. Residential — High Density: $177 per unit 5. Use of Funds Caqital Outlay. All proceeds from fees collected pursuant to the Development Impact Fee Policy shall be paid into the established fire facility fund to be established by the City. Said fund or funds shall be used only for the purpose of acquiring, building, building, improving, and expanding the Fire Facilities analyzed in the Fee Study. Designation of expenditures of funds available from the fire facility fund shall be made by the City Council in the context of approval of the City's annual operating and capital improvemenfs budget of at such other time as the City Council may direct. CITY OF PALM DESERT MAY 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 13 6. Exclusions and Exceptions. Excluded from the fees imposed by policy ar�e the following: a. Any person when imposition of such fee upon that person would be in violation of the constitution and laws of the United States or the State of Califomia. b. The construction of any facility by the City of Palm Desert, the United States, or any department or agency thereof or by the State of Califomia or any department, agency, or political subdivision thereof. 7. Other Methods of Providinq Infrastructure. The City hereby determines that the Development Impact Fee is not intended to be the exclusive method of construction and upgrade of fire facilities and the City will consider altemative proposals to provide needed infrastructure to particular development and, to the extent such alternative proposal is discretionary approved by the City Council, the developer shall receive a fair and equitable credit against payment of the Impact Fee. Any developer seeking altemative methods of installation shall submit such proposal to the City at the time of submittal of an application for development. 8. Validitv and Severance. If any section, subsection, sentence, clause or phase of this resolution is for any reason held to be invalid, such holding or holdings shall not affect the validity of the remaining portions of this Resolution. The City Council declares that it would have passed this Resolution and each section, subsection, sentence, clause and phrase ihereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phases be declared invalid. In determining the amount of the Impact Fee, the City Council has been guided by the Fee Study mentioned in paragraph one hereof. In the event any category of such fee shall be declared invalid, such determination shall not affect the validity of any other category. The City Council further finds, declares, and determines that the Impact Fee on all remaining valid fee categories shall be increased by the amounts of the remaining valid fee categories shall not be so increased over and above the amount recommended by said report for each category. 9. Administration and Enforcement. The Community Development Director shall be responsible for the administration and enforcement of this policy. His decision may be appealed to the City Council whose decision shall be final. The City Manager is hereby authorized to execute necessary agreements for the administration of this policy. Collection oi Fees Section 66607 provides that a local agency shall not require payment of fees by developers of residential development for the construction of public improvements or facilities shall not require the payment of those fees or charges, notwithstanding any other provision of law, until the date of the final inspection, or the date the certificate of occupancy is issued, which ever CITY OF PALM DESERT FIRE PROTECTION IMPACT FEE STUDY MAY 2006 PAGE 14 occurs first. However, "utility services fees" may be collected upon application for utility service. If the residential development contains more than one dwelling, the local agency may determine whether the fees or charges shall be paid on a pro rata basis for each dwelling when it receives its final inspection or certificate of occupancy, whichever occurs first; on a pro rata basis when a certain percentage of the dwellings have received their final inspection or certiFicate of occupancy, whichever occurs first; or on a lump-sum basis when the first dwelling in the development receives its finai inspection or certificate of occupancy, which ever occurs first. According to Section 66607, a local agency may require the payment of those fees or charges prior to the time of inspection if, the local agency detertnines that the fees or charges will be collected for public improvements or facilities for which an account has been established and funds appropriated and for which the local agency has adopted a proposed construction schedule or plan prior to final inspection or issuance of the certificate of occupancy or the fees or charges are to reimburse the local agency for expenditures previously made. If any fee or charge is not fully paid prior to issuance of a building permit for construction of any portion of the residential development encumbered thereby, the local agency issuing the building permit may require the property owner, or lessee if the lessee's interest appears of record, as a condition of issuance of the building permit, to execute a contract to pay the fee or charge, or applicable potion thereaf. If the fee or charge is prorated, if the fee or charge is pro-rated, the obligation under the contract shall be simifarly prorated. Methods of complying with the requirement that a proposed construction schedule or plan be adopted can include a capital improvements plan or similar document. The local agency shall expend a fee for public improvements, as accounted for pursuant to Section 66006, solely and exclusively for the purpose for which the fee was collected. The fee shall not be levied, collected, or imposed for general r�evenue purposes. Exceptions, Reductions, and Waivers If a development project is found to have no impact on facilities for which impact fees are charges, the project is exempted from the fees. If a project has characteristics that indicate its impacts on a particular public facility or infrastructure system will be significantly and smaller impact used to calculate impact fees in this Study, the fees should be reduced accordingly. The City may desire to voluntarily waive or reduce fees that would otherwise apply to a project to promote goals such as affordable housing or economic development. Such waivers or reductions may not result in increased costs to other development projects, and are allowable only if the City offsets the lost revenue from other fund sources. Credit for Improvements Provided by Devebpers If the City requires a developer to construct facilities or improvements for which impact fees have been, or will be, charged, the impact fee imposed on that development project for that type of facility must be adjusted to reflect a credit for the cost of the facilities or improvements constructed by the developer. If the reimbursement would exceed the amount of the fee to be paid by the development for that type of facility, the City may seek to negotiate a reimbursement agreement with the developer. CITY OF PALM DESERT MAY 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 15 In the event a developer offers to dedicate land, buildings, or other valuable consideration in fieu of paying impact fees, the City has the discretion to accept or reject such offers, and may negotiate the terms under which such an offer would be accepted. Credit for Existing Devebpment If a projed involves replacement, redevelopment or intensification of previously existing development, impact fees should be applied only to the portion of the project which represents a net increase in demand for City facilities, as measured by the demand variable used in this study to calculate that particular impact fee. Since residential service demand is normally estimated on the basis of demand per dwelling units, an addition to a single family dwelling unit rypically would not be subject to an impact fee if it does not increase the number of dwelling units in the structure. In any project that results in a net increase in the number of dwelling units, the added units would normally be subject to impact fees. A similar analysis can be applied to non-residential development. Earma�icing af Fee Revenue Section 66006 mandates that fees be deposited with other fees for the improvement in a separate capital facilities account or fund in a manner to avoid any co-mingling of the fees with other revenues and funds of the Iocal agency, except for temporary investment. Fees must be expended solely for the purpose for which they were collected. Interest eamed on the fee revenues must also be placed in the capital account and used for the same purpose. Reporting For each separate account or fund established for the Fees, the local agency shall, within 180 days after the last day of each fiscal year, make available to the public the following information for the fiscal year: A brief description of the type of fee in the account or fund; 2. The amount of the fee; 3. The beginning and ending balance of the account or fund; 4. The amount of the fees collected and the interest earned; 5. An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees; 6. An identification of an approximate date by which the construction of the pubfic improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement; and 7. The amount of refunds made pursuant to Section 66001. CITY OF PALM DESERT MAY 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 16 Costs of Implementation The ongoing cost of implementing the impact fee program is not included in the fees themselves. Implementation costs would include the staff time involved in applying the fees to specific projects, accounting for the fee revenues and expenditures, preparing required annual reports, updating the fees, and preparing forms and public information handouts. RSG recommends that those costs be included in user fees charged to applicants for processing development applications. Annual Update of Capital Improvement Plan Section 66002 provides that as a local agency adopts a capital improvement plan to identify the use of impact fees, that plan must be adopted and annually updated by resolution of the goveming body at a notices public hearing. A document other than a capital improvement plan can be the public document on which the fees are based, if it indicates the approximate location, size, time of availability, and estimates of cost for all facilities or improvements stating the improvements and cost, and is approved by the City Council. CITY OF PALM DESERT MAY 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 17 RESOLUTION NO. 06-72 A RESOLUTION OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A FIRE FACILITIES IMPACT NEXUS STUDY AND ADOPTING FIRE FACILITIES IMPACT MITIGATION FEES. WHEREAS, since its incorporation, the City has been and continues to experience significant development activity in the form of applications and proposals for new residential, commercial, and industrial land development within the City; and WHEREAS, the proposed new residential, commercial, and industrial development within the City will generate a deficiency in fire facilities, and the City is responsible for maintaining an appropriate level of service to the present and future citizens of Palm Desert; and WHEREAS, the City's existing fire facilities are inadequate to handle current and future demand and it is essential to both improve existing facilities, as well as construct a new facility in order to meet the projected increase in demand for fire services; and WHEREAS, the continued and cumulative development of the City, with the consequent increase in population and demand for the use of fire facilities, and the need cannot be met and financed from ordinary City revenues or the existing fire facilities fee; and WHEREAS, the City Council has reviewed a Fire Facilities Impact Fee Nexus Study which sets forth the reasonable relationship between the need for additional fire facilities and residential and nonresidential development, establishes a nexus between certain fees and the cost of fire facilities needed to serve such development, all in conformance with the requirements of The Mitigation Fee Act, California Government Code Section 600 et seq.; and WHEREAS, the City Council of the City of Palm Desert did hold a duly noticed public hearing on May 25, 2006, to consider the Fire Facilities Impact Mitigation Fee. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, DOES HEREBY DETERMINE, ORDER AND RESOLVE, as follows: SECTION 1. The City Council hereby adopts the Fire Facilities Impact Mitigation Fee amounts set forth below: ■ $688.46 per low density residential dwelling unit; ■ $296.59 per medium density residential dwelling unit; ■ $176.83 per high density residential dwelling unit; Resolution No. 06-72 ■ $0.22 per square foot for commercial development; ■ $0.20 per square foot for business park/light industrial uses; ■ Mixed use projects shall be assessed a blended rate based on the anticipated uses. SECTION 2. Unless the City Council adopts a resolution setting forth different fee amounts, these fees shall be automatically updated pursuant to Section 3.45.030.0 of the Palm Desert Municipal Code. PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City Council held on this day of May 2006, by the following vote:: AYES: NOES: ABSENT: ABSTAIN: J!M FERGUSON, MAYOR ATTEST: RACHELLE D. KLASSEN, City Clerk City of Palm Desert, California ORDINANCE NO. 1120 AN ORDINANCE OF THE PALM DESERT CITY COUNCIL UPDATING THE FIRE FACILITY IMPACT FEE APPLICABLE TO NEW COMMERCIAL, RESIDENTIAL, AND INDUSTRIAL DEVELOPMENT WITHIN FIRE SERVICE AREA NO. 71 WHEREAS, the City of Palm Desert was incorporated in 1973; and WHEREAS, since its incorporation, the City has been and continues to experience significant development activity in the form of applications and proposals for new residential, commercial, and industrial land development within the City; and WHEREAS, the proposed new residential, commercial, and industrial development within the City will generate a deficiency in fire facilities, and the City is responsible for maintaining an appropriate level of service to the present and future citizens of Palm Desert; and WHEREAS, the City's existing fire facilities are inadequate to handle current and future demand and it is essential to both improve existing facilities, as well as construct a new facility in order to meet the projected increase in demand for fire services; and WHEREAS, the continued and cumulative development of the City, with the consequent increase in population and demand for the use of fire facilities, and the need cannot be met and financed from ordinary City revenues; WHEREAS, the most practical and equitable method of paying for such needed facilities is to impose a fee upon new development within Fire Service Area 71 and the payment of such a fee enables the City to fund the fire facilities improvement program, thereby providing such facilities as they are required and demanded; that when a development pays the Development Impact Fee established by this policy, the City Council will be able to find that all necessary fire services will be available concurrent with the need and, in the event such finding cannot be made, the City Council will be required to disapprove the development as being inconsistent with the General Plan; and WHEREAS, in 1989, the California Statute took effect which governs the establishment, increase, and imposition of fees levied by local agencies as a condition of development project approval "for the purpose of defraying all or a portion of the cost of public facilities related to the development project;" and WHEREAS, public facilities are defined in the statute to include "public improvements, public services, and community amenities;" and WHEREAS, these requirements are found in the Mitigation Fee Act (Government Code Sections 66000 et seq.) and are commonly known as "AB 1600" requirements after the 1987 Assembly Bill in which they originated; and WHEREAS, pursuant to Section 66001, an agency establishing, increasing, or Ordinance No. 1120 imposing impact fees must make findings to: 1. Identify the purpose of the fee; 2. Identify the use of the fee; 3. Determine that there is a reasonable relationship between: a. The use of the fee and the type of development on which it is imposed; b. The need for the facility and type of development on which the fee is imposed; c. The amount of the fee and the public facility cost attributable to the development on which the fee is imposed; and WHEREAS, the adoption of this fee program and procedures as set out in this Ordinance is found to be a matter of local concern to implement in a timely manner; and NOW, THEREFORE, the Palm Desert City Council does hereby find, determine and ordain as follows: Section 1. The report entitled "Fire Protection Impact Fee Study" ("Fee Study") dated May _, 2006 accurately states the City's need of and lack of ability to provide for the described the facilities and services to serve new development in the Fire Service Area, as defined in the Fee Study. The Fee Study shows that there is a reasonable relationship between the use of the fee and the projected types of development; the need for the new Fire Station and appropriate upgrades to existing faciiities by the projected types af development pursuant to the City's General Plan; and the amount of the fee and the proportionate facility cost related to the development. Section 2. As set forth in detail in the Fee Study, in order to allow development to proceed in an orderly manner, while ensuring that all new development is consistent with the General Plan, it is necessary and appropriate to approve the following Development Impact Fee to be imposed upon new development in the Fire Service Area, as defined in the Fee Study. Said fee will assist the City in funding the construction of the new Fire Station as needed. Section 3. As described in the Fee Study, the Mitigation Fee Act contains requirements for establishing, increasing, and imposing impact fees. Said fee must relate to the effect created by development, and may not exceed the reasonable cost of providing the public service. The Fee Study exhibits the relationship between the overall cost of providing such a service and the proposed fee. Section 4. Prior to the approval of any building permit, the applicant shall pay or agree to pay a Development Impact Fee in the following amount for the rype of development: a. Commercial {all types) —$0.22 per square foot b. Industrial/Office Park —$0.20 per square foot c. Residential — Low Density: $688 per unit Ordinance No. 1120 d. Residential — Medium Density: $297 per unit e. Residential — High Density: $177 per unit Section 5. All proceeds from fees collected pursuant to the Development Impact Fee Policy shall be paid into the fire facility fund to be established by the City. Said fund or funds shall be used only for the purpose of acquiring, building, building, improving, and expanding the Fire Facilities analyzed in the Fee Study. Designation of expenditures of funds available from the fire facility fund shall be made by the City Council in the context of approval of the City's annual operating and capital improvements budget or at such other time as the City Council may direct. Section 6. Excluded from the fees imposed by policy are the following: a. Any person when imposition of such fee upon that person would be in violation of the constitution and laws of the United States or the State of California. b. The construction of any facility by the City of Palm Desert, the United States, or any department or agency thereof or by the State of California or any department, agency, or politicai subdivision thereof. Section 7. The City hereby determines that the Development Impact Fee is not intended to be the exclusive method of construction and upgrade of fire facilities and the City will consider alternative proposals to provide needed infrastructure to particular development and, to the extent such alternative proposal is discretionary approved by the City Council, the developer shall receive a fair and equitable credit against payment of the Impact Fee. Any developer seeking alternative methods of installation shall submit such proposal to the City at the time of submittal of an application for development. Section 8. If any section, subsection, sentence, clause or phase of this Ordinance is for any reason held to be invalid, such holding or holdings shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phases be declared invalid. In determining the amount of the Impact Fee, the City Council has been guided by the Fee Study mentioned in paragraph one hereof. In the event any category of such fee shall be declared invalid, such determination shall not affect the validity of any other category. The City Council further finds, declares, and ordains that the Impact Fee on all remaining valid fee categories shall be increased, however they will not be so increased over and above the amount recommended by said report for each category. Section 9. The Community Development Director shaU be responsible for the administration and enforcement of this policy. The Community Development Director's decision may be appealed to the City Council whose decision shall be final and Ordinance No. 1120 conclusive. The City Manager is hereby authorized to execute necessary agreements for the administration of this policy. Adopted at the regular meeting of the Palm Desert Redevelopment Agency on the _ day of May 2006, by the following vote: Ayes: Noes: Absent: Abstain: Chairperson of the Palm Desert Redevelopment Agency ATTEST: Secretary of the Agency CITY OF PALM DESERT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM TO FROM DATE: RACHELLE KLASSEN, CITY CLERK NIAMH ORTEGA, ADMINISTRATIVE SECRETARY�� JUNE 5, 2006 SUBJECT: REVISED FlRE PROTECTION IMPACT FEE STUDY Attached for your use is the revised Fire Protection Impact Fee Study, along with the revised ordinance and resolution. This information should be included under Section XIII. Public Hearings, H. Consideration of a Fire Facilities Impact Mitigation Fee Pursuant to the Findings of a Nexus Study (Continued from the meeting of May 25, 2006). Please let me know if you require any additional information. nmo Attachment (as noted) � ,.., � � c� w 11WIN2K\groupslFinancelNiamh OrtegalWpdocslMemos\rklassen031805.wpd , ,, _ _ .: _ �.: . �y; �� r� ��. ;' �� i �� Y `` S '~ wv ,,.� ��J IIVTEIIIGENT COMMUNITY DEVEIOPMENT June 1, 200fi Mr. James Brownyard Director of Legislative Analysts Building Industry Association of Southem Califomia 77-570 Springfield Lane, Suite E Palm Desert, CA 92211 ROSENOW SPBVACEK GROUP INC. T 7?4 541 4585 309 WEST 4TH STREE f F'l14 S-07 1}75 5AN7A ANA, CALtFQRNi4 E INFOdWEBRSf COM 92701-4502 WEE3RSG COM Via Electronic Mail RESPONSES REGARDfNG THE FfRE PROTECTION IMPACT FEE STUDY FOR THE CITY OF PALM DESERT Dear Mr. Brownyard: Thank you for reviewing the City of Palm Desert's Fire Protection Impact Fee Study. At your request, RSG has addressed your comments and concems regarding the calculation of the impact fee. This letter is intended to provide additional information on the proposed fire protection impact fee for new development in the northem portion of the City of Palm Desert. Please let us know if we can assist you with further information regarding this report. 1. Page 2, Paragraph 3— The report mentions that Riverside County Fire Department maintains a 5-minute response time standard within the City. Bordering cities also provide service in the City of Palm Desert; therefore, the Rancho Mirage Station should be referenced in this study, as well as, those in Thousand Palms and Del Webb. What are their response times into the northern region of Palm Desert? What is the response time from Station 71 i�to this area? What is then, the necessity for emplacing a new fire station into the northern region of Palm Desert? According to a memo from the Riverside County Fire Department dated March 1, 2005, the average response time for Fire Station 71 for 2005 was 5 minutes, but response times vary from month to month. Between 57% and 76% of all calls per month were fess than 5 minutes. As stated on page 2 of the Study, the Riverside County Fire Department maintains a five- minute response time standard within the City of Palm Desert to any fire/medical emergency, and ho{ds a Class 3 Insurance Services Offices Fire Insurance Rating. The five minute response time is a nationally recognized standard per the National Fire Protection Association. According to the City's General Plan, a major goal of emergency vehicles is to maintain a five-minute response time over 95% for all priority one engagements. While this goai is higher than the National Fire Protection Association standarti of 90% within five REDEVELOGN•ENi PLANVIN:i REAL C57A7E ECOkOt4tC5 F�OUS�NG ��MANCING REAL ESTATE qrOU�51TI(?N ECONO+�tIC DEVEIOPNENi �OVERNMENi SEStVICES minutes, ISO cansiders this element as part of their criteria in the evaluation of fire companies, furthering the need for decreased response times. With significant growth expected throughout the northem portion of the City, the fire facilities, as they are cu�rently situated, wiil find it increasingly difficult to maintain the five- minute response time to priority one engagements. Continued growth and density forecasts indicate a steady increase in the volume of calls for service, thereby adversely affecting fire service response time, and creating the necessity for an additional fire station within the area. Without the introduction of the new development in the area, the construction of the new fire facility would not be necessary. According to officials with the Riverside County Fire Department, none of the existing stations, neither within and outside of the Ciry, would be able to respond to the new praposed development within the time limits specified by both the General Plan and National Fire Protection Agency. Providing an additional fire facility, as well as conducting improvements to the existing facilities in the northem region of the City will prevent the deterioration of public services, maintain response time goals, and ensure the provision of efficient, high quality fire protection for all types of development. 2. Page 3, last paragraph — The Report states that Station 71 will be re�ovated after the completion of the new fire station. How is this renovation of Station 71 related to new development? Station 71 is currently the administrative hub for the Palm Desert Volunteer Fire Company, and maintains the highest response volume in the area. By building an additional station, it would reduce the current call volume of the station, increasing the overall safety of both Fire Department Staff and residents af the area. According to the Riverside County Fire Department, Station 71 will serve as the backup station to the new fire facility. Whi1e this station will experience a reduction in call volume in the short n�n, as development increases in the area, Station 71 will likely see the volume of calls increase, this affecting the demand for services for this existing station. The renovations mentioned in the Report are necessary to maintain the quality of service for the area — both in existing and future development. As previously mentioned, without the introduction of the new development, the constn.iction of the new fire facility �nrould not be necessary. Whi1e the Report states that new renovations for StaY�on 71 will be approximately $150,000, actual costs are likely to exceed this amount. Initial modifications will be minimal, while over time, total renovations will cost up to $1.5 million. The Report uses conservative estimates so not to overestimate the fee charged to new development. New development will only pay for their impact on the demand of these services. 3. Page 7, paragraph 5— The acreage mentioned in this paragraph adds up to more than 4,076 acres in the proposed area. An explanation in greater detail is necessary here and for the dialogue on page 8. The number of developed acres should read 1,659 NOT 1,869. The correct number was used in the calculation of the fee, and thus does not affect the final outcome of this analysis. 4. Page 9— How are the costs attributed to the development of CSU San Bernardino paid? While this is new development, it is caused by an existing demand in the City and the entire Coachella Valtey. Where is their square footage located in this study? The planned build out of the CSU San Bemardino Palm Desert campus is roughly 192 acres. Page 8 of the Study refers to 192 acres designated as "University" land use, which is applicable to this campus. Upon completion, the Ca{ State campus will eventually serve up to 25,000 students, and employ 3,200 full time faculty, staff, and administration. The costs of development are NOT attributed to the expansion of CSUSB, and thus not included in the calculation of the fee. This is because, according to the Califomia Mitigation Fee Act, development can only be charged far the impact on the demand that it creates. In the 1994 US Supreme Court case of Dolan vs. the City of Tigard, it was decided that govemments must demonstrated that a) an essential nexus exists between legitimate state interest and the exaction imposed by the City and b) the nature of the exaction must be roughly proportional to the impact the project is creating. While CSUSB Palm Desert is generating a considerable portion of the increase in the demand for iire services, they cannot be charged for such demand because of the public nature of the facility. Ultimately, either the City of Palm Desert, or the Redevelopment Agency of the City of Palm Desert will bear the burden of these costs. 5. Page 10, Table 5— Our calculations within this table, "Projected Impact Fee Revenue" total 53,388,277, an increase of $20,703. Because RSG rounded its calculations of the applicable fees for new development to the nearest hundredth, estimates for total revenue are conservatively lower. 6. How does the City justify the cost of a fire station at $8 million? Thus is far out of the range of the other fire stations tisted in the study. The stuciy should break down and support the costs. Does the City own any land in the project area? Would this land be viable as a site for a new station? According to a Staff Report dated March 17, 2006 a"fair construction estimate for this station would be from $6 -$8 million based upon a construction initiation within two years." Current construction costs for fire facilities are approximately $425 per square foot, and with inflation, these estimates are expected to �se significantly by the commencement of constn�ction. This estimate is consistent with building costs attributed to a new fire facility constructed in Orange County in May 2006. The City is currently in negotiations with property owners for the facility site, and land estimates are approximately $20 per square foot. 1n addition, the impact to the Fire Budget resufting from the additional personnel, station maintenance, and support senrices is estimated at $2.3 million. This estimate is based upon the consideration of an 11,000 square foot facility, on approximately two acres, with the foifowing specifications: • Dual bedroom design and exercise room • Individual unisex bathrooms with showers • Administrative offices with a lobby area • Four bays, two apparatus deep and separate climate controlied storage buiiding • Exhaust evacuation system • Commercially equipped hose rack • Covered Employee Parking Equipment costs have also been provided by the Riverside County Fire Department and are summarized below: • Fire Engine (Type I): $398,132 • Advanced Life Support Ambulance (Type I) and Equipment: $127,359 • Miscellaneous Supplies and Equipment: $145,254 It is important to note that these specifications are preliminary and due to the unique characteristics of a fire station, there are many items to consider in depth during the planning phase. In the case that the development fee exceeds the actual cost of constructing the new fire facility, a refund can be issued accordingly. The design of this new facility would consider the City's future growth fo� the next twenty-five years. With the anticipated population increase, fire/life safety needs, and projected call volumes, this station may eventually house department headquarters, an additional engine/ambulance company, and a truck company. The Redevelopment Agency does own several other parcels within this area, however, given response time considerations, the chosen location was considered optimal. 7. The study suggests that only those developing in this zone are paying for the fire stations. But, the entire City benefits from additional fire protection. While it is certain that the entire City would benefit from the construction of an additional fire facility within the City of Palm Desert, this fire station would only serve a portion of the City and sphere of influence within a 1.5 mile radius. This radius helps maintain an average five- minute response window, as well as meet both national and City goals. Because the new station will only serve a portion of the City, the impact fee can only be tied to the new development that generates an increase in demand for these services. Without the introduction of the proposed development in the area, the future demand would not increase significantly enough to warrant the construction of a new fire facility. In addition, as stated above, the Riverside County Fire Department has indicated that none of the existing fire facilities would be able to respond to the proposed new development within reasonable time limits. In order to meet state fire safety regulations, Station 71 will serve this development as the backup facility. Without the construction of the new deve{opment in the northem portion of the City, the new fire facility would not be necessary. 8. The City has been collecting Fire Facilities Fees for a time now. How much is in this fund? Have any fire facility projects been started or completed? As of May 25, 2006, the City has collected $126,130 towards fire facility projects. The current development impact fee fo� fire facilities is $100 per dwelling unit for residential construction, and $100 per thousand square feet for commercial development. 9. (Via telephone) Please discuss the impact of the overtap of the various facilities that wiil serve the Fire Service Area. How does the density of the area impact this fee? The Riverside County Fire Department operates under a Regional Fire Protection program, which allows its fire stations to actively support one another regardless of geographic or jurisdictional bounda�es. When an emergency cal4 is received, the station that is physically closest to the emergency will respond, even if the emergency is located outside of the station's official jurisdiction. This provides the community with the most effective and efficient method of emergency response, and allows for the shared use of specialized equipment and personnel between neighboring communities. As a result of this type of system, jurisdictions of the various fire facilities often ove�iap, ensuring the quickest response time passible. As noted earlier in this letter, the expansion of the Califomia State University San Bemardino campus within the City will have a tremendous effect on the demand for fire facilities service within the area. The construction of a new facility is essential to handle the increases in density in the immediate area, in order to maintain a proper response time, and to ensure the safety of the residents in the area. Thank you for the comments and concems you have submitted with this Study. Please let us know if you have any additional questions. Sincerely, ROSENOW SPEVACEK GROUP INC. . ,. , Felise Acosta Principal ,/�, � City of Palm Desert . _ _ � - . �� . . : � . June 2006 �. �1.� ��.�� i - �� 73-510 Fred Waring Drive Palm D�sert, CA92260-2578 • RSG IN7ELL16ENT COMMUNITY DHVHLOPMENT ROSENOW SPEVACEK GROUP INC. 309 West 4th Street Santa Ana, California 9270�-4502 Phone: (714) 541-4585 Fax: (714) 541-1175 E-Mail: infoCo�webrsq.com City of Palm Desert Fire Protection lmpact Fee Study Purposeof the Study ...........................................................................................1 MitigationFee Act ................................................................................................1 City of Palm Desert Fire Protection Services .......................................................3 Existing Fire Stations .................................................................................3 Proposed Fire Facilities Improvements ......................................................4 Proposed Fire Service Area .......................................................................4 Methodology........................................................................................................7 Future and Existing Development within the Fire Service Area ..................7 Facility Cost to Serve Growth .....................................................................8 Projected Revenue ..................................................................................10 fmplementation..................................................................................................12 CouncilAdoption ................................................................................................12 Impositionof Fees .............................................................................................12 Collectionof Fees ..............................................................................................14 Exceptions, Reductions, and Waivers ................................................................15 Credit for Improvements Provided by Developers ..............................................15 Credit for Existing Development .........................................................................16 Earmarking oi Fee Revenue ..............................................................................16 Reporting...........................................................................................................16 Costs of Implementation ....................................................................................17 Annual Update of Capital Improvement Plan .....................................................17 The City of Palm Desert ("City") has retained the Rosenow Spevacek Group Inc. ("RSG") to prepare a Fire Protection Impact Fee Study ("Study") to analyze the direct and cumulative impacts of development on the City's futur�e fire facilities, and to calculate appropriate fees based on that analysis. This Study documents the data, methodology, and results of the fire protection impact fee ("Impact Fee") to mitigate the fiscal burden of new development on the quality of services provided to the community. The methods used to calculate the Impact Fee in this Study are intended to satisfy all legal requirements pursuant to the Mitigation Fee Act (Govemment Code 66000 et seq.). Because the passage of Proposition 13 in 1978 resulted in a decline in revenues, local govemments have increasingly refied on impact fees to mitigate the effects on public services created by new development In response to these changes in spending behavior, the Legislature passed Assembly Bill 1600 ("Mitigation Fee Act") in 1987, stipulating that a local agency may establish development impact fees for the purpose of defraying all or a portion of the cost of public facilities related to development projects. Prior to the implementation of the Califomia Mitigation Fee Act, Iocal govemment agencies had been collecting impact fees for many years. Impact fees, originally called exactions, were first adopted in the 1920's by cities seeking new irifrastructure financing alternatives. In 1949, Califomia courts first adopted the "reasonable relationship° test between a projecYs conditions of approval and development impacts. The concept of exactions expanded in the 1960's with the enactment of the Quimby Act, which authorized either the dedication of land or payment of in-lieu fees for the development of parks. In the past, cities have been able to subsidize new development by installing infrastructure, or by charging impact fees that did not pay for the entire cost of the infrastructure necessitated by the project. Taiay, because of the rising costs of land and construction, local govemments find themselves unable to afford the infrastructure improvements the development will need. As a result, cities are requiring developers to carry the burden of these costs, and in turn, the consumer. The Mitigation Fee Act contains reguirements for establishing, increasing, and imposing impact fees. Since a fee is voluntary, it must be reasonably related to the cost of providing the service by the local agency. If a development impact fee does not relate to the effect created by devebpment, or exceeds the reasonable cost of providing the public service, then the fee may be declared a special tax, and must then be subject to a two-thirds voter approval. The Mitigation Fee Act also contains provisions that govem the colledion and expenditure of fees, and require annual reports and periodic re- evaluation of impact fee programs which will be detailed in the Implementation Section of this Study. CITY OF PALM DESERT FIRE PROTECTION IMPACT FEE STUDY JUNE 2006 PAGE 1 Required findings pursuant to the Mitigation Fee Act in any action establishing, increasing, or imposing a fee as a condition of approvai of a devebpment project by a local agency on or after January 1, 1989, include the following: 1. Identify the purpose of the fee; 2. Identify the use of the fee; and 3. Determine that there is a reasonable relationship between: a. The use of the fee and the development type on which it is imposed; b. The need for the faciliry and the type of development on which the fee is imposed; and c. The amount of the fee and the facility cost attributable to the development project. On August 26, 2004, the Palm Desert City Council passed Ordinance No. 1o73, authorizing the collection of a development impact fee for the provision of fire services. The fire protection fund has been established for providing fire protection sites, facilities, and equipment required by the demand for services from new developments in the City. The current fee for the fire protection fund is $100 per dwelling unit, and $100 per 1,000 square feet of non-residential development. The goal of this Study is to update the applicability of this Impact Fee, as additional fire services are required by the new development occurring within the Fire Service Area. Currently, the Riverside County Fire Department maintains a five-minute response time standard within the City to any fire/medical emergency, and ho4ds a Class 3 Insurance Services Offices ("ISO") Fire Insurance Rating. The five minute response time is a national{y recognized standard per the National Fire Protection Association. According to the City's General Plan, a major goal of emergency vehicles is to maintain a five-minute response time over 95°lo for all priority one engagements. While this goal is higher than the National Fire Protection Association standard of 90% within five minutes, ISO considers this element as part of their criteria in the evaluation of fire companies, furthering the need for decreased response times. With significant growth expected throughout the northem portion of the City, the fire facilities, as they ar� cuRently situated, will find it increasingly difficult to maintain the five-minute response time to priority one engagements. Continued growth and density forecasts indicate a steady increase in the volume of calls for senrice, thereby adversefy affecting fire service response time. It has been determined that an appropriate solution to maintain the current five minute response standard would be to allocate additional resources in the direction of the City's forecasted growth. This would be accomplished by the construcfion of a new fire facility in the region, as well as upgrades to existing Station No. 71. The area of the City analyzes in this Study, the proposed Fire Senrice Area, is demonstrated in Map 1. Fire facilities improvements a�e needed to mitigate the impacts of expected development in the City, prevent the deterioration of public services, maintain response time goals, and ensure the provision of efficient, high quality fire protection for all types of development and socio-economic segments of the community. In doing so, the City will CITY OF PALM DESERT JUNE 2006 F1RE PROTECTfON IMPACT FEE STUDY PAGE 2 be able to effectively and efficiently serve the community, and positively respond to the cur�ent needs as weil as the anticipated growth of the community. New development will benefit greatly from a new fire facility, and the burden of such new development will be mitigated in part by the payment of the Impact Fee. City of Palm Desert Fire Probeation Services Fire protection services are provided to the City of�Palm Desert by the Riverside County Fire Department, which contracts with the Califomia Department of Forestry. Palm Desert, as well as the surrounding cities of Rancho Mirage and Indian Wells, has access to the services provided by fire stations in these cities, creating a mutual aid contract. This allows fire stations to actively support one another regardless of jurisdictional boundaries. When an eme�gency call is received, the station that is physically closest to the emergency will respond, even if the emergency is located outside the station's official jurisdiction. This provides the communities with the most effective and efficient method of emergency response, and allows for the shared use oi specialized equipment and personnel between neighboring communities. The cost of protection to each city is based on the city's total assessed value. The City of Palm Desert funds it share of fire protectio� costs using revenues colleded under the Proposition A Fire Tax, Fire Fees, and transfers from the General Fund. Exisdng Fire Stations The Riverside County Fire Department maintains three fire stations within the incorporated boundaries of the City of Palm Desert. Four stations also exist within its sphere of influence and expanded General Plan Planning Anea. Station No. 33 is located on Town Center Way, just south of Fred Waring Drive. Station No. 33 is staffed by a total of twenty-four crewmembers, including the Battalion Chief Officer. Equipment at Station No. 33 includes one engine staffed by three people per day; one ambulance staffed by two people per day; one campany truck staffed by four people per day; and one reserve truck, which serves as a back-up vahicle when other equiprrent is unavailable. Station No. 67 is located on Mesa View Drive and is staffed by twelve crewmembers, five of which are on duty each day. Equipment at Station No. 67 includes one engine staffed by three people per day and one ambulance that is staffed by two people per day. Station No. 71 is located at the southwest comer of Portofa Avenue and Country Club Drive. This station serves as the administrative hub for the Palm Desert Volunteer Fire Company, which cunently includes twelve volunteers, but may include up to twenty-five. The station is staffed by a total of twelve crewmembers, five of which are on duty each day. Equipment in this station includes one engine, which is staffed by three people per day; one ambulance staffed by two people per day; one reserve engine that functions as a back-up unit; and one Breathing Support Unit that is staffed by volunteers. Station 71 will be renovated after the completion of a new fire facility to include improvements to the living and office areas, apparatus bay, and exhaust removal system. CITY OF PALM DESERT JUNE 2006 FIRE PROTECT{ON IMPACT FEE STUDY PAGE 3 Proposed Fir+e FaciNties Improvemerrts During the FY 2005-06 budget discussions, the Palm Desert City Council directed staff to explore the option of constructing a new fire station in the northem portion of the City, in order to meet the needs of the development of new commercial, r�esidential, and resort properties, as well as the expanding Califomia State University. County Fire officials and staff initiated discussions on a suitable site for the proposed station, as there are various Redevelopment Agency properties in this area. Constructing a new station in the City is pertinent for emergency medical services because of the various planned developments in the area. Based on the Emergency Medical Service ("EMSn) best response time standards of 3-6 minutes for optimal patient survivability, this new station would efficiently serve the communiry in this region by maximizing rescue potential, increasi{�g the ability to combat fires, and dec�+easing property damage. The following table lists existing fire stations, future fir�e stations, and fire facilities improvements planned for the City. Land acquisition cost is based on the current market rate of vacant property in Palm Desert as of the time of this Study. Facility constn�ction costs were provided by the County of Riverside based on recent fire stations built throughout the County. TA�E 1 CfTY aF PALM DESH2T DOSTING APD F�lTIAiE RRE FAdLIT1ES /�D Bf�PMFNT Vehides and 9�IIp� Bulldng VaNieH Land VakielZ Apparat�n /3 Tatal Value Fire S2tim 33 $887.080 $353.808 $599,272 $1.840�160 FireS�ation67 $583�7Q7 $665,597 $569,272 $1,848,576 Fire Sla6on 71(Qirert) $T06,153 $485.873 $680.500 $1,874.526 NewFieShation $6,975.000 $1,700.000 $543.386 $9.218,386 Tafal 58,153,940 S3,2DS,Z78 52,422f130 514,781,646 v Bukirg oosts ae ba9ed m histarkal biildh�g oost. The rew fie slatlm e�ireEes are hesed m iriartrallm fian 1hlC Ardilects ard kidudra 323 rttlGon /or iritfal operatbn oo5ts. ?/ LaM cost based on wrent marMet vakie of vacat lad in Paim Desat 3/ Vetide and appa�s casLa �+ae praided by the Rherside G1�rty Flie DapertrnerY. ProP05@d Fir@ .g@Mo@ AI'ea According to GIS data, the proposed Fire Service Area encompasses approximately 4,076 acres of commercial, residential, hotel and resort, office, public, and undeveloped uses. The Fire Service Anea is generally bounded by the City limits and Interstate 10 to the north, EI Dorado Drive to the east, Country Club Drive to the south, and Monterey Avenue to the west. The boundaries of the Fire Service Area are illustrated in Map 2, located on page 11 of this Study. According to the General Plan and Land Use Element (2004), most of the vacant land within the City's limits available for coordinated master planning and development is limited primarily to the northem portions of the City, particularly in the University Park Planning Area. University Park extends south of the US Interstate-10/Union Pacific CITY OF PALM DESERT JUNE 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 4 Railroad corridor and is bounded on the east by Cook Street, on the west by Monterey Avenue and on the south by Frank Sinatra Drive. Major influences on future development include the construction of the Palm Desert campus of the Califomia State University, residential resort development, and regional commercial development in the vicinity of the I-10. The General Plan and Land Use Element further indicates that development of the new Califomia State University campus on Cook St�et and a branch of the University of Califomia Riverside Gary Anderson Graduate School of Business, will act as important catalysts for other land development ventures in the planning area. Important opportunities for commercial synerc�ies are anticipated with the buildout of the University Campus and facilities. A full range of commerciaf development, including entertainment, dining, nightclubs, and other retail are expected along the Cook Street corridor, and will provide the City with another dynamic district supported by local residential, tourist and resort development, and the university campuses. This Study will consider the direct and cumulative impacts of new development within the proposed Fire Service Area, on the City's Fire Facilities and calculate the appropriate Impact Fee for the fair share cost to new development. The following section details the methodology utilized to create the appropriate Impact Fee for new development in the construction of the new fire facility. CITY OF PALM DESERT JUNE 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 5 City of Palm Desert - Proposed Fire 3ervice Area f�a, I ' Ranaho f� =�+�s � s� coun�ty r�Or:oia �Fine S+.abon N Tam GntK' Fnd Watinp r Map 1 •f Y.� �.1�� r '�✓�/ � �...�...aw -�.�.,..�•, r.�..a.w•. � P►Op0lCd FIfE SQfYIOCAf� Y LL3'.L '1,so Y.�'t��i CITY OF PALM DESERT JUNE 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 6 methoao�ogy This section of the Study calculates the Impact Fee for the new fire department facilities and equipment. In orcier to calculate the Impact Fee, it is essential to specify formulas that quantify the relationship between development and the need for facilities. In these formulas, demand variables are used to represent the effect of various types of development on the need for fire services. In the case of providing fire serv'ices, the most important factor in maintaining the appropriate level of service for the Fire Service Area is the potential development of the area served. If all future developed acreage was included in the cost allocation formula, a portion of the cost for fire station facilities would be allocated to parks, schools, and other public facilities. However, since those public facilities will be constructed to serve future private development, their fire protection needs are also attributable indirectly to future private development. To reflect this assumption, the future acreage devoted to those uses will not be included in the cost allocation of fire facilities. This approach is utilized in this Study because fire senrioes are supported by the entire system of facilities and equipment, and it is not possible to identify certain facilities or apparatus that serve future development as opposed to existing development. Using this method ensunes that both existing and future development share in the capital costs for fire protection in proportion to the demand they create. The Impact Fee assessed to new development within the proposed Fire Service Area shall be used only to finance the fair share cost of the Fire facilities as identified by City Staff. These costs include land, construction, fire apparatus and equipment, and other related capital improvements.' According to Califomia Govemment Code 65913.8, this fee may not include the maintenance or operation of an improvement when the fee is required as a condition of approval of a development project. Future and Existing Development withm the Fir+e Service Area The first step in calculating the Impact Fee is determining the existing development versus the amount of new devebpment anticipated in the Fire Service A�a. Utilizing estimates from City Staff, Table 2 summarizes existing developed land within the Fire Service Area. According to Ciry Staff estimates, there are 1,659 acres of developed commercial, residential, and industrial land within the 4,076 acre proposed area, with an additional 1,534 acres of development expected in the future.2 In addition, there are 883 acres of open space and public facilities within the area. Map 2 on page 11 displays the developed acreage within the Fire Service Area per the General Plan and Land Use Element (2004). ' Estimates fa the new 11,U00 square foot facility include a dual bedroom design and exercise room, individual unisex bathroans with shwders, administrative offkes, four bays with a climate controlled storage building, exhaust evacuation system, commetcially equipped kitchen, oversized hose rack, and covered parking. = These estimates do not include roads. CITY OF PALM DESERT JUNE 2006 FIftE PROTECTION IMPACT FEE STUDY PAGE 7 TABLE 2 CITY OF PALM DESERT - PROPOSED FIRE SERVICE AREA EXISTING LAND USE AND DEVELOPMENT Land Use Commercial Community Office Professional Regional Resort Vacant Subtotal Commercial Industrial IndustriaUBusiness Park Vacant Subtohal Industrial Development Developed Units Units Acreage square feet 259,182 24 square teet 96,921 9 square feet 1,024,749 94 square feet 884,790 145 square feet 6,395,048 610 8,660,690 882 square feet 391,496 36 square feet 2,069,644 190 2,461,140 226 Residential Low-Density Medium-Density High-Density Vacant Subtotal Residential Mixed Use Open Space Parks Private Public Reserves Subtotal Open Space Public Fadlities Schools university Quasi-Public Facilities Subtotal Public Facilities TOTAL ACREAGE Facility Cost to Serv@ Gr+owth dwelling units dwelling units dwelling units dweiling units acreage acreage acreage acreage acreage acxeage acreage 4,146 1,325 127 26 0 0 0 714 4,273 2,065 0 20 0 571 0 79 0 19 669 0 13 o �s2 0 9 214 4,0T6 In order to determine the appropriate fee to charge to new development, the total potential future build out estimates were obtained from City Staff. According to this data, approximately 62.3% of the total acreage, or 2,752 acres, is either developed or open space, as demonstrated in Table 4. Because the Impact Fee must be based on the total demand created by the new development, 37.7°la of the eligible fire protection facility costs will be assigned to future development (1,534 acres) in this analysis.3 By utilizing this method, the total cost of the new fire station ($9,218,386) and Fire Station 71 renovation ($150,000) were divided by the total demand created by new development to calculate a cost per acre of demand, as demonstrated in Table 3. This table shows that ' This does not include the development of the Califomia State University, San Bernardino campus. CITY OF PALM DESERT JUNE 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 8 37.7% of the total cost of the fire facilities improvements, or $3.5 million, will be attributed to the 1,534 acres of new development, at a cost of $2,298 per net acre. TABLE 3 qTY aF' PALM DESERT - r nur wcv FlRE S6t1ACE AREA FlRE FACIUTY CO6T PER/LCRE 1+c�5hudion Hte Se1v10e l�ast F�er' Nlet Co6t Ikea ACres ACre F2 SaUrn 71 Rerbvation $150,000 4.076 $37 New Fre Stabrn �,218,386 4,076 $2,2fi2 Slt�tdal $9�368.386 4A75 $2.298 SeMoe Costs Adrilx�fable to New De�elo�rreri $3�525.786 1,534 $2,298 Subsequently, this cost per net acre is multiplied by the total acres per unit of new development in each land use category, in order to arrive at a fee per unit of new development, as demonstrated in Table 4. All commercial development, including community, office professional, regional, resort, and mixed-uses, have been grouped together in one category. The recommended fee per square foot of commercial development is $.22, and $.21 per square foot for industriaVbusiness park development. For residential development, these fees range from $185.14 for each unit of high density residential development, to $720.81 per each unit of low density housing developed. Although the development of the Califomia State Universiry, San Bemardino campus will generate significant demand for fir�e services, it will not be charged a development impact fee, due to its public natune. Sinoe inflation is not included within these calculations, the City may wish to identify appropriate ir�flation indexes in the implementing ordinance and resolution and allow a� automatic inflation adjustment to the Impact Fee annually. TABLE4 q7Y OF PALM OES�f - rewra�ucu RRE SBtVICE AREA Flt� INPALT f� PHt LAPDISE CATEQORY Not Yet Nat Yet Aoes Per Deueia�xre�ti De�elaped De�elo�ed lAit d Cost Per Fee Piar l.ard lbe Ur�tts lMits Aues Deuelaprrent Arxe l�Yt Corrrr�rCial squae faet 6.672848 630 0.00009fi3 $'Z.29B $0.?2 Inci��strial Residentlal Low CL�rsily AAeci�m Llarsity �� r TOTAL sq��ae feet dNelirg urls d�neiirg u�ts a�� 2,069,644 190 0.0000918 $2,298 507 159 0.3136095 $2,298 z�s � o.,3s,mo �,zqe zso� x;a o.oeo�oa �,2sa 1,534 52,298 �0.21 $720.81 s�io.� $186.14 CITY OF PALM DESERT JUNE 2006 F1RE PROTECTION IMPACT FEE STUDY PAGE 9 Projected Revenue Table 5 demonstrates the total revenue to be expected from the implementation of the Impact Fee, according to projected build-out estimates given by the City. Section 66005 of the Govemment Code stipulates that the Impact Fee shall not exceed the estimated reasonable cost of providing the service ar facility for which the fee is imposed. The City of Palm Desert can expect to receive approximatety $3.52 million from the implementation of an Impact Fee to assist in the funding of the fre facilities upgrades. This method implicitly assumes that the entire new service demand of the facilities will be absorbed by the new development ° TABLE 5 CI7Y aF PALM DESER� - rr� w�+ RRE S�1ACE ARE/► PRQIECTED INP,4CT F� RE11EI�1� FRON FVTI�E DEV�aPNFAIT Deuelqxr�ant Fee per Unit d Uiits to Be Irrpact Fee L.and lkse lM9ts De�relaprrieri De��elo{�ed F�everrie CamYtieroial squarefeet $0.71 6,612,848 $1.448.009 Industrial �ideMiai i..o� o�ry AAadtitt Der�sity � �H TOrAL �� d�un� �„�� dwellirg units d�npJing ur�ts ' This does not include open space and public facilfties. CITY OF PALM DESERT FIRE PROTECf{ON IMPACT FEE STUDY so.z� zo�,saa �s.�o, $�zo.a� $310.52 $18�'a.14 5rn �,a5o 2,376 $T37,795 zso5 ��,s�2 53,525�786 JUNE 2006 PAGE 10 City of Palm Desert - Fire Service Area - Existing Land Use Map 2 � N - IndustriaUGHice - Commeraai Single Family Residential' Timeshare Estate Vacant � Mobile Home �- Residential - MuIN-Family CITY OF PALM DESERT FIRE PROTECTION IMPACT FEE STUDY JUNE 2006 PAGE 11 a o.2 a. o.eM� � r�� ;::::�,....�Q..�.�..,..no.....� � ..� Implementation Councii Adoption On August 26, 2004, City Council adopted Ordinance No. 1073 for the collection of fire facility fees for new development. Should City Council choose to adopt the proposed fee schedule and service area to fund future fire facilities, the City must comply with Califomia Govemment Code Sections 66016 through 66018 by: • Sending a Notice of Public Hearing at least 14 days prior to the hearing to any party that has submitted a written request for such a notice. Have this Study and supporting documentation available for review by the public at least 10 days prior to the hearing; ■ Hold a public hearing to consider adoption of the Impact Fee schedule; • Adopt an implementing resolution to establish the City's authority to impose the proposed fee and automatically adjust the fee annually for inflation, and adopt a resolution to set the fee based on the proposed fee schedule; • Begin collecting the fee no sooner than 60 days following adoption of the ordinance and resolutbn. • Create a separate Fire Facilities Fund for revenues collected by the implementation of the Impact Fee. In addition to the obligations listed above, if the City should decide to implement the proposed Impact Fee, it is recommended that the Impact Fee would be collected at the time of building permit issuance. The City should also identify ottter funding souroes to complement impact fee revenues to fully fund planned facilities. Govemment Code 66020 requires that the City, at the time it imposes an impact fee provide written statement of the amount of the fee and a written notice of a 90-day period during which the imposition of the fee can be protested. Failure to protest imposition of the fee during that period may deprive the fee payer of the right to subsequent iega{ challenge. Govemment Code 66022 provides a separate procedure for challenging the establishment of an impact fee. Such challenges must be filed within 120 days of the enactment. Impasition of Fees Pursuant to the Mitigation Fee Act, when the City imposes an impact fee upon a specified development project, it must make findings to: Identif�r the purpose of the fee; 2. Identify the use of the fee; and 3. Determine that there is a reasonable relationship between: a. The use of the fee and the development type on which it is imposed; b. The need for the facility and the type of development on which the fee is imposed; and CITY OF PALM DESERT JUNE 2006 FIRE PROTEC710N IMPACT FEE STUDY PAGE 12 c. The amount of the fee and the facility cost attributable to the development project. When considering the creation of an ordinance and resolution for the implementation of the Impact Fee developed in this Study, the findings could be stated as follows: 1. The report entitled "Fire Protection Impact Fee Study" ("Fee Study") dated June _, 2006 accurately states the City's need of and lack of ability to provide for the described the facilities and services to serve new development in the Fire Service Area, as defined in the Fee Study. The Fee Study shows that there is a reasonable relationship between the use of the fee and the projected types of development; the need for the new Fire Station and appropriate upgrades to existing facilities by the projected types of development pursuant to the City's General Plan; and the amount of the fee and the proportionate facility cost related to the devebpment. 2. As set forth in detail in the Fee Study, in order to allow development to proceed in an orderly manner, while ensuring that all new development is consistent with the General Plan, it is necessary and appropriate to approve the following Development Impact Fee to be imposed upon new development in the Fire Service Area, as defined in the Fee Study. Said fee wifl assist the City in funding the construction of the new Fire Station as needed. 3. Mitiqation Fee Act. As described in the Fee Study, the Mitigation Fee Act contains requir�ements for establishing, increasing, and imposing impact fees. Said fee must relate to the effect created by development, and may not exceed the reasonable cost of providing the public service. The Fee Study exhibits the relationship befinreen the overall cost of providing such a service and the proposed fee. 4. Development Im�act Fee Policv Amount. Prior to the approval of any building permit, the applicant shall pay or agree to pay a Development Impact Fee in the following amount for the type of development: a. Commercial (all types) —$0.22 per square foot b. Industrial/Office Park —$0.21 per square foot c. Residential — Low Density: $721 per unit d. Residential— Medium Density: $310 per unit e. Residential — High Density: $185 per unit 5. Use of Funds Canital Outlay. All proceeds from fees collected pursuant to the Development Impact Fee Policy shall be paid into the established fire facility fund to be established by the City. Said fund or funds shall be used only for the purpose of acquiring, building, building, improving, and expanding the Fire Facilities analyzed in the Fee Study. Designation of expenditures of funds available from the fire facility fund shall be made by the City Council in the context of approval of the City's annual operating and capital improvements budget of at such other time as the City Council may direct. CITY OF PALM DESERT JUNE 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 13 6. Exclusions and Exceptions. Excluded from the fees imposed by policy are the following: a. Any person when imposition of such fee upon that person would be in violation of the constitution and laws of the United States or the State of California. b. The construction of any facility by the City of Palm Desert, the United States, or any depa�tment or agency thereof or by the State of Califomia or any department, agency, or political subdivision thereof. 7. Other Methods of Providina Infrastructure. The City hereby determines that the Development Impact Fee is not intended to be the exclusive method of constn.rction and upgrade of fire facilities and the City will consider altemative proposals to provide needed infrastructure to particular development and, to the extent such altemative proposal is discretionary approved by the City Council, the developer shall receive a fair and equitable credit against payment of the Impact Fee. Any developer seeking altemative methods of installation shall submit such proposal to the City at the time of submittal of an application for development. 8. Validitv and Severance. If any section, subsection, sentence, clause or phase of this resolution is for any reason held to be invalid, such holding or holdings shall not affect the validity of the remaining portions of this Resolution. The City Council declares that it would have passed this Resolution and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phases be declar�ed invalid. In determining the amount of the Impact Fee, the City Councif has been guided by the Fee Study mentioned in paragraph one hereof. In the event any category of such fee shall be declared invalid, such determination shall not affect the validity of any othe� category. The City Council further finds, declanes, and determines that the Impact Fee on all remaining valid fee categories shall be increased by the amounts of the remaining valid fee categories shall not be so increased over and above the amount recommended by said report for each category. 9. Administration and Enforcement. The Community Development Diredor shall be responsible for the administration and enforcement of this policy. His decision may be appealed to the City Council whose decision shall be final. The City Manager is hereby authorized to execute necessary agreements for the administration of this policy. Collection of Fees Section 66607 provides that a local agency shall not require payment of fees by developers of residential development for the construction of public improvements or facilities shall not require the payment of those fees or charges, notwithstanding any other provision of {aw, untii the date of the final inspection, or the date the certificate of occupancy is issued, which ever CITY OF PALM DESERT JUNE 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 14 occurs first. However, "utility services fees" may be collected upon application for utility service. (f the residential development contains more tha� one dwelling, the local age�cy may determine whether the fees or charges shall be paid on a pro rata basis for each dwelling when it receives its final inspection or certificate of occupancy, whichever occurs first; on a pro rata basis when a certain percentage of the dwellings have received their final inspection or certificate of occupancy, whichever occurs first; or on a lump-sum basis when the first dwelling in the development receives its final inspection or certificate of occupancy, which ever occurs first. According to Section 66607, a local agency may require the payment of those fees or charges prior to the time of inspection if, the local agency determines that the fees or charges wi1{ be collected for public improvements or facilities for which an account has been established and funds appropriated and for which the local agency has adopted a proposed construction schedule or plan prior to final inspection or issuance of the certificate of occupancy or the fees or charges are to reimburse the local agency for expenditures previously made. If any fee or charge is not fully paid prior to issuance of a building permit for constructifln of any portion of the residential development encumbered thereby, the Iocal agency issuing the building permit may require the property owner, or lessee if the lessee's interest appears of record, as a condition of issuance of the building permit, to execute a contract to pay the fee or charge, or applicable potion thereof. If the fee or charge is prorated, if the fee or charge is pro-rated, the obligation under the contract shall be similarfy prorated. Methods of complying with the requirement that a proposed construction schedule or plan be adopted can include a capital improvements plan or similar document. The local agency shall expend a fee for public improvements, as accounted for pursuant to Section 66006, solefy and exclusively for the purpose for which the fee was collected. The fee shall not be levied, collected, or imposed for general revenue purposes. Exceptions, Reductions, and Waivers {f a development project is found to have no impact on facifities for which impact fees are charges, the project is exempted from the fees. If a project has characteristics that indicate its impacts on a particular public facility or infrastructure system will be significantly and smafler impact used to calculate impact fees in this Study, the fees shouid be reduced accordingly. The City may desire to voluntarily waive or reduce fees that would otherwise apply to a project to promote goals such as affordable housing or economic development. Such waivers or reductions may not result in increased costs to otFier development projects, and are allowable only if the City offsets the lost revenue from other fund sources. Credit for I�r�pnovements Provided by Devebpers If the City requires a developer to construct facilities or imprtivements for which impact fees have been, or will be, charged, the impad fee imposed on that development project for that type of facility must be adjusted to reflect a credit for the cost of the facilities or improvements constn.icted by the developer. If the reimbursement would exceed the amount of the fee to be paid by the development for that type of facility, the City may seek to negotiate a reimbursement agreement with the developer. CITY OF PALM DESERT JUNE 2006 F1RE PROTECTION IMPACT FEE SiUDY PAGE 15 In the event a developer offers to dedicate fand, buildings, or other valuable consideration in lieu of paying impact fees, the Ciry has the discretion to accept or reject such offers, and may negotiate the terms under which such an offer would be accepted. Credit for Existing Devebpment If a project involves replaoement, redevelopment or intensification of previously existing development, impact fees should be applied only to the portion of the project which represents a net incr�ease in demand for City facilities, as measured by the demand variable used in this study to calculate that particular impact fee. Since residential service demand is normally estimated on the basis of demand per dwelling units, an addition to a single family dwelling unit typically would nat be subject to an impact fee if it does not increase the number of dwelling units in the structure. In any project that results in a net increase in the number of dwelling units, the added units would normally be subject to impact fees. A similar analysis can be applied to non-residential development Ea»na�icing af Fee Revenue Section 66006 mandates that fees be deposited with other fees for the improvement in a separate capital facilities account or fund in a manner to avoid any co-mingling of the fees with other revenues and funds of the local agency, except for temporary investment. Fees must be expended solely for the purpose for which they were collected. Interest eamed on the fee revenues must also be placed in the capital account and used for the same purpose. Reporting For each separate account or fund establisheci for the Fees, the local agency shall, within 180 days after the last day of each fiscal year, make availab{e to the public the fol{owing information for the �scal year: A brief description of the type of fee in the account or fund; 2. The amount of the fee; 3. The beginning and ending balance of the account or fund; 4. The amount of the fees collected and the interest eamed; 5. An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the pubfic improvement that was funded with fees; 6. An identification of an approximate date by which the construction of the public improvement will commenoe if the local agency determines that sufficient funds have been col{ected to compfete financing on an incomplete public improvement; and 7. The amount of refunds made pursuant to Section 66001. CITY OF PALM DESERT FIRE PROTECTION IMPACT FEE STUDY JUNE 2006 PAGE 16 Costs of Implementation The ongoing cost of implementing the impact fee program is not included in the fees themselves. Implementation costs would include the staff time involved in applying the fees to specific projects, accounting for the fee revenues and expenditures, preparing required annual reports, updating the fees, and preparing forms and public info�rnation handouts. RSG reoommends that those costs be included in user fees charged to applicants for processing development applications. Annual Update of Capital Improvement Plan Section 66002 provides that as a local agency adopts a capital improvement plan to identify the use of impact fees, that plan must be adopted and annually updated by resolution of the goveming body at a notioes public hearing. A document other than a capital improvement plan can be the public document on which the fees are based, if it indicates the approximate location, size, time of availability, and estimates oi cost for all faci{ities or improvements stating the improvements and cost, and is approved by the City Councit. CITY OF PALM DESERT JUNE 2006 FIRE PROTECTION IMPACT FEE STUDY PAGE 17