For City Council Meeting [April 24, 2018]
TO: Honorable Mayor and City Council
APPROVAL: Robb R. Steel, Interim City Administrator
Title
Request City Council to Receive and File the Annual Update to the Development Impact Fees for Fiscal Year 2018/2019.
Body
BACKGROUND:
On December 27, 2011, the City Council adopted Resolutions No. 6067, 6068 and 6069, thereby increasing most of the Development Impact Fees imposed on new development in the City. Furthermore, the City Council on July 23, 2014 adopted Resolution No. 6310; on March 11, 2014 adopted Resolution No. 6418; on January 24, 2017 adopted Resolution No. 6418; and on February 13, 2018 adopted Resolution No. 7280 also increasing other Development Impact Fees.
The Resolutions (Exhibit A and Exhibit B) allow for an automatic inflationary adjustment to the fees each July 1st based upon the percentage change in the California Construction Cost Index (CCCI) for the preceding calendar year or a flat 5% increase for the Renaissance Specific Plan (RSP) Entitlement Cost Recovery Fee.
ANALYSIS/DISCUSSION:
During 2017, the CCCI and the Consumer Price Index (CPI) increased by 3.5% (Exhibit C). The new Development Impact Fee schedule (Exhibit D) includes the 3.5% inflationary adjustment effective on July 1, 2018.
ENVIRONMENTAL IMPACT:
The proposed action is not defined as a Project Pursuant to Section 15378 of the California Environmental Quality Act. A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The proposed action is just an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
The proposed increases to the Development Impact Fees are consistent with the following guiding principles, goals and objectives contained in the General Plan:
Guiding Principals
• Essential community services and amenities must meet the needs and desires of our families.
• Rialto shall attract high-quality new development and improve its physical environment.
• The quality and standards of our streetscapes and public spaces will reflect the high quality new development we require.
• Infrastructure keeps pace with our growth.
Goals and Objectives
Goal 2-27: Provide a variety of park facilities that meet the diverse needs and interest of the community.
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
Goal 3-7: Upgrade public infrastructure as an inducement to promote private investment.
Goal 3-8: Promote affordable and quality water service capable of adequately meeting normal and emergency water demands to all areas in Rialto.
Goal 3-9: Upgrade and maintain an improved wastewater system with adequate plant efficiency and capacity to protect the health and safety of all Rialto residents, businesses, and institutions.
Goal 3-13: Provide high-quality library resources to meet the educational, cultural, and life-long learning needs of all residents.
LEGAL REVIEW:
The City Attorney has reviewed and approved the staff report.
FINANCIAL IMPACT:
Operating Budget Impact
This action does not have an immediate impact on the General Fund Operating Budget.
Capital Budget Impact
The increase in development impact fees will help construct master planned facilities by increasing revenues to the various development impact fee fund accounts. The annual inflationary adjustment will help the City remain current with construction cost increases.
RECOMMENDATION:
Staff recommends that the City Council Receive & File the Annual Update to the Fiscal Year 2018/2019 Development Impact Fees.