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HomeMy WebLinkAbout1992-09-30 - AGENDA REPORTS - IMPACT FEE STUDY (2)TO: FROM: DATE: CITY OF SANTA CUR TA I N T E R O F F I C E M E M O R A N D U M Honorable Mayor and Members of the George A. Caravalho, City Manager September 30, 1992 SUBJECT: Council Study Session - Draft Deve BACKGROUND :e Study On .March 7, 1991, the City entered into a contract with the consulting firm of Recht Hausrath Associates (Oakland, CA). to prepare a development impact fee study. A draft study was prepared, divided into two studies entitled, "Public Facilities Fee Program," (includes community facilities, general government, libraries, parks and recreation, and transportation) and "Art in Public Places and Child Care Facilities Mitigation Program." Separate studies for the two areas are necessary as the fees collected for them are administered differently. The two studies provide a schedule of fees that the City may collect from new development to contribute to infrastructure funding, so as to help ensure that new development pays its fair share cost of improving local infrastructure. As the City's population increases, so does the demand for infrastructure and public facilities. A proportional amount of new facilities must be provided to serve new development to avoid a decline in local levels of service. Infrastructure and public facilities funding is stated throughout the goals and policies of the City's adopted General Plan. Particularly, the concept of "pay as you go" will be substantially implemented by .this fee program. The fees collected will assist in meeting the goal of providing adequate services. Another goal will be addressed by allocating the cost of public services on a fair and equitable.basis determined by service demand. The study accomplishes meeting these goals through its methodology, which is a combination of several factors: General Plan buildout, determination of the public facilities standards, projection of the public facilities needs to meet the standards, identification of funding (combination of public and private sources), and determination of public facility fees. A chart summarizing the fees is located on page 4 (Table 4) in the Executive Summary and on page 9 (Table I-3) of the draft Public Facilities Fee Program. The Art in Public Places methodology is quantified on page 3 of the art and child care program (bullets and second paragraph), and the child care requirements are summarized on page 8 (Table III -3) At its meeting of April 9, 1991, the Council appointed Mayor Klajic and Mayor, Pro -Tem Heidt as representatives on a task force to facilitate the direction of the study. The Deputy City Manager/Community Development and the Director of Finance were assigned to the task force as well. The task farce met three times and provided direction on nontechnical issues such as facility standards, appropriate financing mechanisms, and projects to be financed through this study. Agenda Item: � City Council September 30, 1992 page 2 The consultants, Dick Recht and Bob Spencer of Recht Hausrath Associates will be in attendance to give a presentation on the draft study and to assist the Council. A copy of the draft study and the Executive Summary are attached. RECOMMENDATION 1. Receive overview presentation. 2. Discuss the Draft Development Impact Fee Study 3. Defer action until 1993. Attachments: 1. Executive summary 2. Draft Reports (2 bound together) MAR:723 0 MEMORANDUM To: Santa Clarita City Council From: Robert D. Spencer— Date: June 17, 1992 Subject: Executive summary of Public Facilities Fee Program draft report dated March 1992 This memorandum provides an executive summary of the Public Facilities Fee Program draft report dated March 1992. Also included is a discussion"of key policy issues. 'Be program and its policy implications will be explained in full during an upcoming workshop with Council. Finally, we summarize the Mitigation Program draft report that was attached to the fee report. SUMMARY OF PUBLIC FACILITIES FEE PROGRAM The purpose of public facilities fees, also known as impact fees, is to fund facilities necessary to accommodate growth. City facilities provide services that benefit city residents and employees of local businesses. New development increases this service population and the demand for city services. If the City does not expand facilities to serve growth, the level of facilities enjoyed by existing residents will decline. For example, roads will be more congested, parks more deteriorated, and libraries more crowded. Constraints on other funding sources have led local governments throughout California to adopt facilities fees to fund the capital costs of growth. The report provides the legal documentation required by state law to justify. a public facilities fee program. The document explains the reasonable relationships between types of new development, the need for new facilities; and the level of fees, given a set of policy assumptions. Council should consider the draft report as a discussion document which it can use to decide policy issues regarding which facilities to fund at what level of fees. Should Council adopt this method of capital funding, the actual program may differ from that shown in the draft report as a result of Council's policy direction. Santa Clarita City Council Page 2 June 17, 1992 New Development Projections Projections of increases in population and employment provide the basis for estimates of additional facilities required to serve growth. Growth projections for the next twenty years are based on the City's recently adopted General Plan. Projections encompass all areas of the Santa Clarita Valley anticipated to be annexed to the City by 2011. Table 1 shows these projections. TABLE 1 CITY OF SANTA CLARITA POPULATION AND EMPLO"IENT, 1991 AND 2011 Avg. Ann. 1991 2011 Increase Increase Population 118,800 232,300 113,500 3.4% Employment 42,100 136,900 94,800 6.1% Total Service Population 160,900 369,200 208,300 4.2% Source: See Table II -3 of draft report. Public Facility Planning and Facility Standards Determining the quantity of new facilities required to serve existing and new development requires the adoption of facility standards. Standards are often expressed per capita for the facilities associated with a given city program (e.g. acres of park land per 1,000 capita). Standards are a critical policy assumption because they link growth with the amount of needed facilities. The additional facilities needed to serve the city's service population in 2011, based on specified standards, are shown in Table 2. Allocating Public Facility Costs To New Development New development may not be responsible for funding (with fees) all of the facility needs listed in Table 2. A portion of facility needs may be funded by alternate funding sources under the following circumstances: • If facility needs are based on a higher standard than currently exists in the city, then existing development must fund a portion to cure this existing deficiency. It would be inequitable to impose the entire cost on new development. ► If a portion of facility needs to serve new development can be funded by alternate sources, then the amount funded by fees may be reduced. Santa Clarita City Council Page 3 June 17, 1992 TABLE 2 FACILITY NEEDS, 1991 TO 2011 Facility Type Facility Standard Facility Needs Community Facilities 1 major recreational center Community, senior, and youth per 45,000 residents centers, 2 sports centers General Government 1,253 bldg. sq. ft. per 1,000 Civic center, corporation yards, , Facilities capital materials recovery facility; etc. Libraries 200 bldg. sq. ft. and 1,270 18,000 bldg. sq. ft., 114,600 Revenues volumes per 1,000 capital volumes Parks & Recreation 2 improved park acres per Improve 68 existing unimproved 253,950 1,000 residents acres, acquire and improve 258 49,294,000 12,647,000 additional acres Transportation Level of service 'D" Intersection improvements, transit 0 0 buses, commuter rail stations t City residents plus employees of local businesses. Source: See Chapters III through VII of the draft report. The costs of the facility needs shown in Table 2, allocated between public facilities fees and alternative funding sources are shown in Table 3. Community facilities, general government facilities, and parks require alternative funding sources because of the first . reason cited above (existing deficiencies). Transportation facilities require non -fee funding sources because of the second reason cited above (anticipation of alternate funds to reduce new development's contribution through fees). TABLE 3 FACILITIES NEEDS AND FUNDING SOURCES, 1991 TO 2011 Total Public Facilities Facilities Fee Other Funding Sources Facility Type Costs Revenues Total Avg. Annual Community Facilities 9,940,000 4,861,000 5,079,000 253,950 General Government 61,941,000 49,294,000 12,647,000 632,350 Libraries 7,776,000 7,776,000 0 0 Parks & Recreation 101,082,000 81,039,000 20,043,000 1,002,150 Transportation 58,272,000 43,313,000 14,959,000 747,950 Total 1 $239,011,000 1 $186,283,000 $52,728,000 $2,636,400 Source: Table I-2 of draft report. Santa Clarita City Council June 17, 1992 Page 4 Table 4 presents the public facilities fees needed to generate the fees revenues shown in Table 3 ($186 million). PUBLIC FACILITIES FEE PROGRAM POLICY ISSUES The public facilities fee program raises three critical policy issues for Council consideration. These issues are discussed below. The draft report reflects the policy direction of the task force that guided the study. The task force was composed of senior city staff and two Council members. Facility Standards and Non -Fee Funding Commitments In the past, the County provided fewer public facilities than are now considered adequate by the City to serve residents and local employees. Thus, without accounting , for growth, the City has a large existing deficiency in community facilities, general government facilities, and parks. Although the City seeks to achieve a higher standard in these areas, new development cannot be held responsible for a higher standard than the current population is willing to provide for itself. Thus, the City must use alternate funds TABLE 4 PUBLIC FACILITIES FEES Residential Nonresidential (Per Dwelling Unit) (Per 1.000 Building Sg Ft.) Single- Multi - Facilities Family Family Office Retail Industrial Community Facilities $133 $86 -- -- - General Government 735 476 789 550 448 Libraries 270 175 57 39 32 Parks & Recreation 1,897 1,230 406 283 231 Transportation 699 377 2,158 2,049 803 Subtotal $3,734 $2,344 $3,410 $2,921 $1,514 Fee Administrationi 93 59 85 73 38 Total $3,827 $2,403 $3,495 $2,994 $1,552 1 Based on expenses for program administration at 2.5 percent of the total fee amount. Source: Table I-3 of draft report. PUBLIC FACILITIES FEE PROGRAM POLICY ISSUES The public facilities fee program raises three critical policy issues for Council consideration. These issues are discussed below. The draft report reflects the policy direction of the task force that guided the study. The task force was composed of senior city staff and two Council members. Facility Standards and Non -Fee Funding Commitments In the past, the County provided fewer public facilities than are now considered adequate by the City to serve residents and local employees. Thus, without accounting , for growth, the City has a large existing deficiency in community facilities, general government facilities, and parks. Although the City seeks to achieve a higher standard in these areas, new development cannot be held responsible for a higher standard than the current population is willing to provide for itself. Thus, the City must use alternate funds Santa Clarita City Council June 17, 1992 Page 5 to expand facilities to the higher adopted standard for the existing population. This is called correcting an existing deficiency. About $38 million, or $1.9 million per year over twenty years, is needed to correct existing deficiencies in community facilities, general government facilities, and parks (Table 3). If the City does not meet this obligation, then the impact fees shown in Table 4 will be overstated and inequitable on new development. The City can changethisfunding obligation by changing the facility standards used to calculate facility.needs. Lower standards result in a lower commitment, but also a lower amount of new facilities to serve the city. Points for Council consideration regarding this policy issue include: Facility Standards: What level of public facilities is needed to adequately serve the community? Commitment of Alternative Revenue Sources: What are the limits of the City's long term financial capacity to fund new public facilities with alternative revenues sources (besides fee revenues), particularly if general. revenues are the likely source for most of this commitment? Existing Debt Service Payments on General Government Facilities: The City currently has outstanding debt of which about $9.5 million is funding general government facilities. The non -fee funding obligation shown in Table 3 is in addition to the annual payment to retire this debt. If the City wants the debt service payment to fulfill its funding obligation, then planned facilities in the general government area would need to be reduced. Regional Public Facilities Fee Programs Many public facilities located in the city also serve residents of surrounding unincorporated areas, and vice versa. New regional facilities can only be equitably . funded by fees if fees are imposed on all new development in the city and surrounding areas. In the case of the Public Facilities Fee Program presented in the draft report, only the libraries fee had to be documented as a regional fee. That is, for this fee to be implemented it should be adopted by the County and the City and imposed on all new development in the Santa Clarita Valley. The regional funding approach is analogous to the fire facilities fee already adopted by the City which also applies to the unincorporated area. Other parts of the Public Facilities Fee Program, such as transportation and parks, could also benefit from a regional approach, though the documentation does not reflect this in its current version. Issues for the Council to consider include: ► Should the County.be approached to jointly implement a library facilities fee? Santa Clarita City Council Page 6 June 17, 1992 Does the City wish to pursue other regional funding programs with the County? Annexations In certain cases an annexation will increase existing deficiencies, and the City's commensurate non -fee funding obligation. This occurs if (a) the annexation is inhabited, and (b) the annexation does not include public facilities at a level being funded by the fee program. This concern only applies to community facilities, general government facilities, and parks. If an annexation results in an increase in the existing deficiency for a type of facility, the City would probably need to increase its non -fee funding obligation to correct the increased deficiency. Alternatively, the City could develop a regional fee program with the County so that new development has already paid its share of new facilities when annexation occurs. MITIGATION PROGRAM In addition to the Public Facilities Fee Program, an attached draft report documents a mitigation program in two areas: art in public places and child care facilities. These programs are different from facilities fees because the City would not anticipate owning these facilities, but rather would expect new development to mitigate its negative impacts by including these facilities in each project. If it is not feasible for a project to do so, then an in -lieu fee is paid and the City uses the funds to provide the needed facilities. Art in Public Places The purpose of the art in public places mitigation program is to moderate some of the negative visual impacts of new development. The mitigation program would require art be provided in conjunction with certain types of development. Generally this includes fairly large projects with reasonably significant impact, i.e. a noticeable difference. in the city before and after the development. Developments of this scale would be required to provide art equal to at least one percent of the building permit value of the development. An in -lieu fee. may be paid at the same rate at the developer's discretion. The key policy issue is at what level to set the mitigation requirement. Most cities with similar programs use one percent of building permit value. In addition, important implementation issues to be considered include: Would the Council or another public body like the Parks and Recreation. Commission be responsible for the program? What conditions does a developer have to meet to fulfill the mitigation requirements, e.g, how visible does the art need to be? Santa Clarita City Council June 17, 1992 What art is acceptable? ► How would the in -lieu fee revenues be spent? Child Care Facilities Page 7 The child care mitigation program's objective is to ensure that new commercial/ industrial development provides a minimum level of child care facilities for children associated with employees of that development. To be conservative, the level of mitigation was calculated based on the child care needs of low- and moderate -income families and only the children of those families likely to seek licensed child care.. The fees are shown below in Table S. TABLE 5 CHILD CARE FACILITIES IN -LIEU FEE Fee Per 1,000 Land Use Category Square Feet Standard Office $889 Retail/Commercial 620 Industrial/Business Park 505 Source: Table III -3 of mitigation program draft report. As with art in public places, the key policy issue is at what level to set the mitigation requirement. In addition, important implementation issues to be considered include: ► Should there be requirements to set aside child care slots for low and moderate income families? ► How will the City allocate in -lieu fee revenues? Through a single non-profit agency? Through competitive application? RECHT HAUSRATH &ASSOCIATES MEMORANDUM To: Santa CMta City Council From: Robert D. Spencer Date: September 24, 1992 Re: Public Facilities Fee Program - September 30 Study Session This memorandum explains critical issues for Council consideration regarding the Public Faculties Fee Program. The first issue should be resolved at the study session because it affects the final draft report that will be used as a basis for the public hearing on the program. The remaining two items are key policy issues 'on which the Council can provide direction either now or later at the public hearing. 1. Compared to residential development, what is the relative demand for public facilities generated by commercial. and industrial development for the following types of facilities: • General government faiilities (e.g. 1 employee equals 1 resident) • Libraries (e.g. 0.20 employees equals 1 resident) • Parks (e.g. 0.20 employees equals,1 resident) 2. Does the City wish to commit $1.9 million per year from general revenues to raise existing facility standards for parks, community facilities (e.g. recreation' centers), and general government facilities (e.g. civic center)? I Are the proposed facility standards, including their impact on fee levels, too high given their potential to act as a disincentive to economic development and affordable housing in the City? URBAN ECONOMISTS 1212 BROADWAY OAKLAND CA 94612 (510) 839.8383 FAX 839-8415 RECHT HAUSRATH &ASSOCIATES MEMORANDUM To: Santa Clarita City Council From: Dick Recht and Bob Spencer Date: September 30, 1992 Re: Summary of comments made at public workshops City staff and Recht Hausrath & Associates have held two public workshops regarding the proposed Public Facilities Fee Program. The great majority of participants were from the development community (real estate brokers, landowners, builders, and " developers). Generally their comments were critical of the program. They are . summarized below for you information. • Fees will increase development costs, force new or expanding companies to locate elsewhere, and limit job growth in Santa Clarita. • Fees make it more difficult to produce affordable housing in the City. • New development that locates in the surrounding unincorporated area to avoid fees will still place demands on city facilities, especially roads. • The fiscal benefit of new development to the City (increased tax base) needs to be considered when evaluating fees which could drive new development elsewhere. • Higher fees make development less feasible and are a financial burden on current landowners. • The comparison of fees with other cities in the draft report does not include cities that Santa Clarita is competing with for commercial and industrial development, such as Palmdale/Lancaster and Simi Valley: • The City cannot afford the facility standards upon which the fees are based because they will drive development to competitive areas. In sum, workshop participants thought that the City should conduct a comprehensive study of the City's competitive position for new development and the impact of fees on that position prior to adopting the fee program. URBAN ECONOMISTS 1212 BROADWAY OAKLAND CA 94612 (510) 839.8383 FAX 839-8415 City of Santa Clarita September 30,1992 PROFITABILITY OF RESIDENTIAL FRANCHISES AT APPROVED RATES* * Based on the 12. months ending April 30, 1992. (a) Includes actual revenues plus additional approved revenue for the 12 months ending April 30, 1992. (b) Franchise fees were not paid during the reporting period; this is a theoretical value, based on 10% of approved franchise revenues subject to the franchise fee. Hilton Farnkopf & Hobson 1 -, of Revenue Approved Revenues (a) $794419000 100% Franchise Fees (h) ($7329000) -10% f Opelating Costs (1120 -83°lo Potential Dpel aflllg PICo#it ' $5009000 7% r * Based on the 12. months ending April 30, 1992. (a) Includes actual revenues plus additional approved revenue for the 12 months ending April 30, 1992. (b) Franchise fees were not paid during the reporting period; this is a theoretical value, based on 10% of approved franchise revenues subject to the franchise fee. Hilton Farnkopf & Hobson 1 City of Santa Clarita September 30,1992 Exhibit 9A2 ESTIMATED FRANCHISE FEES ACCRUED VERSUS HAULER COST INCREASES NOT PASSED THROUGH For the 20 Months Ending December 31, 1992 (a) Based on 10% of reported revenues from January 1, 1992 to April 30, 1992. Revenues estimated based on average monthly revenues during 12 months ending April 30, 1992. (b) Based on an initial disposal fee of $19.75 per ton, and the increases shown in Exhibit 10. (c) Rates were increased from $16.85 to $17.81 per single family unit per month, or 5.7%. (d) Multi -family bin rates increased by 4.6% to 5.6%, depending on service level. An average multi -family increase of 5.0% is assumed in this analysis. - (e) Estimated based on average monthly revenue reported for 12 months ending April 30, 1992. See Exhibit 9B. (f) Based on tipping fee increase from $24.45 to $28.89 per ton. See Exhibit 9B. (g) Based on 0.7% change in PPI between April 1991 and December 1991. See Exhibit 9C. Hilton Farnkopf & Hobson +J City Credits Hauler Credits ' 'ranctiise b ces ! 12ate Increase Cbltected '. Disposal Cost PPI Ad,ustmett ;, Qwed fo City by Haulers to Offset Dis '1 Ctist.Increases. Increases Not Implemented; oit Januar 1,!'; May 1, 1991 to April 30, 1992 $2302000 (a) $241,000 (c) ($312,000) (b) ($110000) (g) $212,000 $64,000 (d) May 1, 1992 to Dec. 319 1992 $460,000 (e) $0 ($198,000) (f) ($221000) (g) $240,000 Total $690,000 $3052000 ($510,000) ($33,000) $4529000 (a) Based on 10% of reported revenues from January 1, 1992 to April 30, 1992. Revenues estimated based on average monthly revenues during 12 months ending April 30, 1992. (b) Based on an initial disposal fee of $19.75 per ton, and the increases shown in Exhibit 10. (c) Rates were increased from $16.85 to $17.81 per single family unit per month, or 5.7%. (d) Multi -family bin rates increased by 4.6% to 5.6%, depending on service level. An average multi -family increase of 5.0% is assumed in this analysis. - (e) Estimated based on average monthly revenue reported for 12 months ending April 30, 1992. See Exhibit 9B. (f) Based on tipping fee increase from $24.45 to $28.89 per ton. See Exhibit 9B. (g) Based on 0.7% change in PPI between April 1991 and December 1991. See Exhibit 9C. Hilton Farnkopf & Hobson +J City of Santa Clarita September 30,1992 ESTIMATED RATE ADJUSTMENTS Effective January 1;1993 Hilton Farnkopf & Hobson 3 ` tt CITY OF SANTA CLARITA PUBLIC FACILITIES FEE PROGRAM MARCH 1992 RECHT HAUSIZATH & ASSOC URBAN ECONOMISTS 1212 Broadway, Suite 1700 Oakland, California 94612 -, W IATES Ageldaltem:— CITY OF SANTA CLARITA PUBLIC FACILITIES FEE PROGRAM TABLE OF CONTENTS I. INTRODUCTION AND SUMMARY ....................... 1 PUBLIC FACILITIES FINANCING IN CALIFORNIA ...... 2 FEE DETERMINATION ............................ 4 SUMMARY OF FACILITIES COSTS AND FEE SCHEDULES ................................ 7 PROGRAM IMPLEMENTATION ..................... 9 II. NEW DEVELOPMENT PROJECTIONS ................... 11 PROJECTIONS OF DWELLING UNIT AND COMMERCIAL/INDUSTRIAL SPACE ............ 12 PROJECTIONS OF POPULATION AND EMPLOYMENT .. 15 III. COMMUNITY FACILITIES ............................ 18 EXISTING FACILITIES ............................. 18 FACILITY STANDARDS ............................ 18 FACILITY NEEDS AND COSTS ...................... 18 FUNDING PLAN .................................. 20 IV. GENERAL GOVERNMENT ............................22 EXISTING FACILITIES ............................. 22 FACILITY STANDARDS ............................ 23 FACILITY NEEDS AND COSTS ...................... 24 FUNDING PLAN .................................. 25 V. LIBRARIES ......................................... 29 SERVICE POPULATION PROJECTIONS ............... 29 EXISTING FACILITIES ............................. 31 FACILITY STANDARDS ............................ 31 FACILITY NEEDS AND COSTS ...................... 31 FUNDING PLAN .................................. 32 VI. PARKS & RECREATION .............................. 34 EXISTING FACILITIES ............................. 34 FACILITY STANDARDS ............................ 35 FACILITY NEEDS AND COSTS ...................... 37 FUNDING PLAN .................................. 39 VII. TRANSPORTATION ................................. 42 INTERIM FEE PROGRAM .................... ... 42 Public Facilities Fee Program - DRAFT REPORT 'Page i Table of Contents PROJECTION OF TRIP GENERATION ................. 43 EXISTING FACILITIES........ .................. 44 FACILITY STANDARDS ............................ 44 FACILITY NEEDS AND COSTS ...................... 45 FUNDING PLAN ................................... 47 VIII. COMPARISON OF CAPITAL FACILITIES FEES BETWEEN SANTA CLARITA AND COMPARABLE COMMUNITIES50 DESCRIPTION OF COMMUNITIES ................... 50 METHODOLOGY ................................. 51 SUMMARY OF RESULTS AND CONCLUSIONS ......... 52 DISCUSSION BY PROTOTYPE PROJECT .............. 54 Public Facilities Fee Program - DRAFT REPORT • Page ii I. INTRODUCTION AND SUMMARY City facilities provide services for the benefit of city residents, businesses, and employees. As this service population increases, so does the demand for city facilities. As developers build new homes and commercial/industrial buildings, the City must provide proportional amounts of new facilities to serve this development, that is, unless existing residents are to experience a decline in the level of facilities that they had previously enjoyed. Moreover, recently incorporated cities such as Santa Clarita often have deficient levels of facilities. In this case, the City is choosing to expand its facilities beyond what is needed solely to accommodate new development to raise its levels of service for all residents and employees, new and existing. This report documents the amount and cost of new capital facilities for city services required to (1) serve new development through the year 2010 and, (2) to correct existing deficiencies. In addition, this report reviews funding alternatives including public facilities fees, or impact fees, paid by new development to fund its fair share of those facilities needs. The report documents the maximum justified level of those fees. A key element of the City of Santa Clarita's fee program is its commitment of alternative funds to raise existing facility standards to an appropriate level. New development's need for facilities, and the -fees imposed on it, are then be based on this appropriate level without new development curing existing deficiencies. This approach highlights two critical policy issues: • Facility Standards: What level of public facilities is needed to adequately serve the community? • Commitment of Alternative Revenue Sources: What are the limits of the City's long term financial capacity to fund new public facilities with alternative revenues sources (besides fee revenues), particularly if general funds are the likely source for most of this commitment? Public Facilities Fee Program - DRAFT REPORT Page 1 a This introductory chapter to the Public Facilities Fee Program summarizes the Program under the following topics: • Public Facilities Financing in California • Fee Determination • Facilities Costs and Fee Schedules • Program Implementation The introduction is intended to provide a general understanding of the concepts and methodology used to design public facilities fees. The second chapter sets forth projections of new development. Each succeeding chapter contains a detailed analysis of the specific costs and assumptions involved in the calculation of the fee for a facility type, e.g. parks. The final chapter provides a comparison between the City of Santa Clarita and three other communities of total fees imposed on new development to fund capital facilities. PUBLIC FACILITIES FINANCING IN CALIFORNIA Several events during the recent past have undercut the financial capacity of local governments to build infrastructure: passage of Proposition 13, difficulty passing bond initiatives, and severe reductions in federal and state assistance. Since Proposition 13, Property taxes have been inadequate to fund capital needs, and have.been generally insufficient for on-going operations and maintenance expenses at pre -Proposition 13 levels of service. As an immediate response to their funding crisis, cities and counties throughout California cut back services, deferred maintenance, and slashed capital investment. Similar to other cities, the Santa Clarita finds itself in a situation of scarce resources. As a longer-term response, most cities and counties are shifting the burden of financing the capital costs of additional infrastructure to accommodate new development from tax Public Facilities Fee Program - DRAFT REPORT page 2 Chapter I Introduction and Summary revenues and general obligation bonds to that development. This shift has primarily been accomplished through the imposition of public facilities fees, also know as development impact fees. Some fee programs address only a few specific facilities, such as sewer, fire, or storm drainage, while other municipal fee programs are comprehensive, requiring developers to pay for all additions to municipal. facilities needed to accommodate new development. As a result of wide -spread imposition of public facilities fees, the State Legislature passed AB 1600 adding Government Code sections 66000 et seq. which lay ground rules for imposition and on-going administration of fees. The law, which became effective in January 1989, requires local governments to document that a reasonable relationship exists between new development, the fee, and the facilities built to accommodate that development. The legal requirements restrict how local governments may impose and use public facilities fees. These statutes have also made local governments less vulnerable to litigation and have given developers a more predictable environment in which to build. In general, the law requires that the fee amount be sufficient only to fund the additional facilities required to serve new development. It is important to distinguish between a fee for public facilities financing and a tax. Fees must conform to the conditions imposed by AB 1600 and case law and are used exclusively to fund the capital costs of new facilities. In addition, fees only require action by the elected governing board of a city or county to be imposed. Taxes,, on the other hand, may be used for either capital or operating and maintenance costs, and tax increases generally must be approved by the voters. Consequently, it is critical in the documentation for any public facilities fee program to demonstrate that the fee is not greater than the cost of facilities to accommodate new development to avoid being challenged as a tax. The Public Facilities Financing Plan serves that purpose. Public Facilities Fee Program - DRAFT REPORT Page 3 Chapter I Introduction and Summary FEE DETERMINATION The design of the City's public facilities fee program followed a seven step process: (1) selecting a time period, (2) projecting new development, (3) determining facility service areas, (4) identifying facilities to accommodate new development, (5) estimating their costs, (6) determining alternative funding sources, and (7) selecting an appropriate and equitable means to allocate costs among new development. Projecting New Development Projections of new development provide the basis for projections of additional facilities required to serve growth. The Program uses growth projections based on the City's. recently adopted General Plan. Projections were made for the planning area outlined on the map on the following page. These projections are presented below in Table I-1. Residents are used as a measure of the impacts of residential development, and employees are used as a measure of the impacts of non-residential development. The projections indicate that the City will add a total service population (residents plus employees) of 208,300 during the next two decades. TABLE I-1 NEW DEVELOPMENT IN THE CITY OF SANTA CLARITA 1991 TO 2011 Residential 46,200 dwelling units 113,500 residents Commercial/Industrial 43,300 building sq. ft. 94,800 employees. 208,300 service population Source: Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 4 Santa Clarita Planning Area 0 5000 10q rEff �, AA Santa Clarita General Plan City of Santa Clarita r � ��� ,' ~'�"-• i� ��w Angeles National Forest f Caa[ak �� Haste ancon 11! !:3 ' Castalo J Val ante �s c n �u 1 ' �• • •• >/ ' lr i �. , \ - I ... _} 1011 Li zz /' ' ✓ i . a a �I Send Canyon rayon f' Newhall Pica 0 ' Anpelesrest National �...�...-.,,._._.%""� ,.__...._ Canyon ` -.. Forest/",- Forest j' �'•• 4' N San Gabriel Manlains Santa Clarita Planning Area 0 5000 10q rEff �, AA Santa Clarita General Plan City of Santa Clarita Chanter I Introduction and Summary Identifying Facilities to Accommodate New Development and Correct Existing Deficiencies Determining the quantity of new facilities required to serve new development requires the adoption of standards. These standards establish minimum levels of service for city infrastructure. Standards are often stated in terms of a city department's amount of facilities per capita (e.g. acres of park land per capita). The new facilities that development must fund is then calculated according to these standards and projected population and employment growth. The City can adopt its own reasonable standards that reduce, maintain, or increase the present levels of service provided to the existing population. However, new development cannot be held accountable for higher standards than the current population is willing to provide for itself. Thus, if existing facilities are below the standard chosen as a basis for fees, the City must use alternative funds to expand these facilities to the same standard. This is called correcting an existing deficiency. New development cannot be asked to cure an existing deficiency. Estimating Facilities Costs Each department provided cost estimates for the new facilities it will require through the year 2011 based on the standards developed during the previously step. We gave careful review to the determination as to which facilities and costs were appropriately funded by a public facilities fee. Thus, the portion of facilities costs that remedy existing deficiencies (to benefit the existing population) and those which provide additional capacity (to benefit growth) were allocated according to the shares that benefit each group. Public Facilities Fee Program - DRAFT REPORT Page 6 Chapter I Introduction and Summary Determining Alternative Funding Sources We reviewed alternative funding sources to determine if any were available and appropriate for funding facilities required to accommodate growth. If so, then the amount funded by alternative sources was not included in the allocation of facilities costs to new development described in the final step below. Allocating Facilities Costs To New Development The number of new residents and employees usually determines facilities needs, while fees are usually paid based on the physical amount of new development, e.g.. number of dwelling units or amount of building space. Thus, the final step distributes total facilities costs among land use categories based on the population or employment density of each category. This approach ensures that fees are directly related to the cost of facilities required to accommodate a particular type of development. In some cases, such as community facilities, costs are only allocated to residential development because commercial/industrial development is not assumed to generate a significant demand for this type of facility (see Chapter III). SUMMARY OF FACILITIES COSTS AND FEE SCHEDULES Table I-2 summarize the total costs of facilities to accommodate development during the next twenty years and the cost to correct existing deficiencies. Costs to accommodate new development are assumed to be funded by fee revenues. The amount under "other funding sources" in the table indicates costs associated with correcting existing deficiencies, with the exception of transportation facilities. In this case, additional traffic modeling analysis must be completed by the City to more precisely determine new development's share of facilities costs. In the meantime, an interim transportation facilities fee is proposed that conservatively allocates a portion of total costs to new development. Public Facilities Fee Program - DRAFT REPORT Page 7 Chapter I Introduction and Summary TABLE I-2 FACILITIES NEEDS AND FUNDING SOURCES 1991 To 2011 Total Public Facilities Facilities Fee Other Funding Sources Facility Type Costs Revenues Total Avg. Annual Community Facilities 9,940,000 4,861,000 5,079,000 253,950 General Government 61,941,000 49,294,000 12,647,000 632,350 Libraries) 7,776,000 7,776,000 0 0 Parks & Recreation 101,082,000 81,039,000 20,043,000 1,002,150 Transportation 58,272,000 43,313,000 14,959,000 747,950 Total $239,011,000 1 $186,283,0001 $52,728,000 $2,636,400 t The inclusion of libraries in the Program requires cooperation with the County of Los Angeles. See Chapter V. 2 Transportation is an interim ten-year program from 1991 to 2001. The costs and revenues have. been doubled in this table to be comparable with the other facilities plans. See Chapter VII. Source:. Recht Hausrath & Associates. Table I-3 presents the public facilities fees if new development is required to fully fund its share.of total facilities costs shown in Table I-2. In addition, a small part of the cost of supplying the facilities to accommodate development consists of the documentation, administration and implementation expenses of the fee program. Based on the experience of other cities, an estimate of .2.5 percent of all fees collected appears to be reasonable for these costs. The City is therefore justified in adding a 2.5 percent surcharge on all fees collected to cover these overhead costs. The City should monitor the actual expenses incurred and compare with this estimate and adjust the fee as necessary to insure that excess funds are not collected. Public Facilities Fee Program - DRAFT REPORT Page 8 Chapter I Introduction and Summary TABLE I-3 PUBLIC FACILITIES FEES Residential Nonresidential (Per Dwelling Unit l (Per 1.000 Building Sa. Ft.) Single- Multi - Facilities Familyl Familyl Office Retail3 Industrial4 Community Facilities $133 $86 — -- General Government 735 476 789 550 448 Libraries5 270 175 57 39 32 Parks & Recreation 1,897 1,230 406 283 231 Transportation 699 377 2,158. 2,049 803 Subtotal $3,734 $2,344 $3,410 $2,921 $1,514 Fee Administration6 93 59 85 73 38 Total $3,827 $2,403 $3,495 $2,994 $1,552 1 Single-family generally includes detached dwellings at densities less than 6.7 units per acre; multi. family includes all other units. '- Includes all development with more than 2.50 employees per 1,000 building square feet. 3 includes all development with 2.50 to 2.00 employees per 1,000 building square feet. 4 Includes all development with less than 2.00 employees per 1,000 building square feet. 5 Adoption of the libraries fee is dependent upon cooperation with the County of Los Angeles. See Chapter V. 6 Based on 2.5 percent of the fee amount. Source: Recht Hausrath & Associates PROGRAM IMPLEMENTATION We recommend that the City undertake annual and longer-term (perhaps five-year) reviews of its facilities fee program. The annual review, required by law, will verify that the assumptions on which the fees are based remain generally applicable and will make adjustments for inflation. The longer-term reviews will allow for detailed re-examination of all assumptions such as growth forecasts, development trends, facilities needs, annexation policies, inflation, and land costs. Such reviews will help attune long-range infrastructure planning to the City's changing needs. Public Facilities Fee Program - DRAFT REPORT Page 9 Chapter I Introduction and Summmy The actual implementation and administration of a public facilities fee program will involve adopting new procedures, training personnel, tracking facility costs and accounting for fee revenues. In addition, City staff will be frequently confronted with particular situations in which they must interpret the program's criteria and render special judgments. The City should adopt administrative guidelines to provide staff and the development community with guidance regarding on-going operation of the program. The guidelines should assist in maintaining consistent standards regardless of city personnel turnover or updates to the fee program. The .City anticipates that the public facilities fees will be collected at time of building permit issuance. The fees will not be collected on vacant land until development occurs. Fees will only be collected on developed land if the existing structures are being expanded or otherwise modified to allow more intense use of the property. Fee revenues for each facility category will be collected in a separate trust account, and interest earned on fund balances will be credited to that account. Funds will be transferred from that account to specific accounts for construction as needed to finance the facilities required to serve new development. The City anticipates using its five-year capital improvement program to indicate the actual phasing and location of new facilities to be funded by the public facilities fees. For those funds unexpended or uncommitted after five years, the.City should demonstrate a reasonable relationship between the fee and the purpose for which the fee was charged, otherwise the City shall return the fees to the current owners of the property on which the fee was imposed. Public Facilities Fee Program - DRAFT REPORT Page 10 II. NEW DEVELOPMENT PROJECTIONS This chapter presents estimates of new development anticipated in the City of Santa Clarita during the next twenty years, 1991 through 2011. The amount and cost of new public facilities bears a strong relationship to the number of new residents and employees that will live and work in the City as a result of new development. In this manner, projections of new development will provide a basis for estimates in subsequent chapters of the public facilities needed to accommodate that development. The projections presented here are based on the City's recently approved General Plan, its first General Plan since incorporating in 1987. The plan allocates land available for development to different land uses. Designated land uses are then translated into numbers of dwelling units and square feet of commercial and industrial building space based on allowable development densities specified by the plan. Population and employment projections can then be derived from these estimates of dwelling units and building space. The result is an estimate of the build -out capacity of the City based on the adopted General Plan. Besides the analysis summarized above regarding new development projections, two additional issues must be considered: Tune Horizon The public facilities fee program is a financing plan for capital investments that have a life expectancy of at least several decades. This suggests that the time horizon for the program should be at least 10 to 15 years, and possibly longer. However, too long a time period may be unreasonable because of the uncertainty of projections that distant, and the chance that the policy assumptions underlying the program will change. Given these considerations, new development is projected over a twenty-year period, from a 1991 base year through 2011. These projections represent 80 to 90 percent of the eventual build -out of the City based on the adopted General Plan. Public Facilities Fee Program - DRAFT REPORT Page 11 Chanter H New Development Projections Annerations The City's present intention is that certain areas contiguous to its current boundaries eventually will be assumed within its municipal jurisdiction through periodic annexations. This a normal process for a city in a growing region such as the Santa Clarita Valley. Though at this time it is difficult to predict an exact annexation schedule, it is reasonable to assume that by 2011 certain annexations will have occurred. An annexation schedule was estimated as part of the fiscal impact assessment prepared for the General Plan, and the new development projections presented here incorporate that schedule.l In the case of Santa Clarita, annexations have a significant impact on development projections because large portions of developable land lie in the surrounding unincorporated area. Though projections of new development are a prerequisite for establishing a public facilities fee program, the exact timing and final amount of that development generally does not have a significant effect on the calculated fee. New and expanded facilities are needed and fee revenues accrue in concert with the pace of new development. For example, to the extent that these projections overestimate the actual amount of development then fewer public facilities than estimated here will be needed to accommodate that development. But fewer fee revenues will have accrued to the City to fund those facilities as well. Thus, the general relationship between new development, the need for facilities, and the fee amount remains relatively constant. PROJECTIONS OF DWELLING UNIT AND COMMERCIAL/INDUSTRIAL SPACE Los Angeles County has been one of the fastest growing regions of the United States and the Santa Clarita Valley has been one of the fastest growing areas within that region. Population and employment in the Santa Clarita Valley nearly doubled from 1980 to t Fiscal Impact Assessment, General Plan Land Use Allocations, City of Santa Clarita, Economics Research Associates (ERA), Revised 9/7/90, pp. 112-3. Public Facilities Fee Program DRAFT REPORT Page 12 Chapter II New Development Proiections 1990, with most of that increase occurring within current City boundaries (the City was incorporated in 1987).2 Primary reasons behind this growth include: • Development of the regionwide freeway system provided easy access to employment centers in and around Los Angeles from suburban areas like the Santa Clarita Valley, • With extensive development occurring throughout Los Angeles County, the Santa Clarita Valley became one of the few remaining areas=that had large tracts of land available for development, and • Job growth in neighboring San Fernando and Antelope Valleys supported residential growth in the Santa Clarita Valley. The growth inducing factors noted above are anticipated to continue to effect significant growth in the Santa Clarita Valley. However, in contrast to previous trends, the Valley is projected to attract more jobs than additional employed residents. Employers are anticipated. to follow a typical trend of relocating to growing labor market areas in the suburbs. These projections suggest that the Valley's character will shift from being predominantly suburban residential with a high percentage of.out-commuting, to becoming a major employment center for the County, approximately balanced between jobs and housing. Table 1I-1 presents estimates of dwelling units and commercial/industrial building square feet for 1991 and 2011, showing the projected growth over the next twenty years. The 1991 dwelling unit estimate is from the California Department of Finance and is based on the 1990 census. The other data shown in the table is based on projections from the fiscal impact assessment prepared for the General Plan. As the table shows, dwelling units in the City are expected to more than double, while commercial and industrial building space is anticipated to more than triple during this period. This anticipated 2 During the 1980s population was estimated to have grown from 79,000 to 153-,900, and employment from 24,000 to 46,000. City of Santa Clarita General Plan, Adopted June 26, 1991, Table H-1 (including footnotes), p. H-5; 2010 Projections, County of Los Angeles Department of Regional Planning, December 1987, Table A-6, p. A-7. Public Facilities Fee Program - DRAFT REPORT Page 13 Chapter 11 New Development Proiectionr growth is reflected in the 23,500 dwelling units that have already been approved within the City and the surrounding unincorporated area, out of a total projected increase of 46,200 shown in the table.3 TABLE 1I-1 NEW DEVELOPMENT PROJECTIONS 1991 To 2011 1991 2011 Increase Residential (Dwelling Units)' Single-Farnily2 27,100 46,000 18,900 Multi-Family2 17,300 44,600 27,300 Total 44,400 90,600 46,200 Commercial/Industrial (1,000 Sq. Ft.)3 Standard Office 100 3,400 3,300 Retail/Commercial4 8,900 28,000 19,100 Industrial/Business Park 11,500 32,400 20,900 Total 20,500 63,800 43,300 t 1991 estimates from DOR 2011 projection from ERA absorption schedule allocated by dwelling type based on total new units added 1990 to 2020. 2 Single-family generally includes detached dwellings at densities less than 6.7 units 1per acre; multi -family includes all other units. 1991 estimated at 5% above ERA 1990 estimates. 2011 estimated at 82% of ERA 2020 build -out projection. 4 0.1 million sq. ft. added to 1991 and 1.9 million sq. ft, added to 2011 to represent hotel and recreational employment at average retail employment density. Source: Report E-5 Preliminary, California Department of Finance (DOF), May 3, 1991, p. 23; Fiscal Impact Assessmer:l, General Plan Land Use Allocations, City of Santa Clarita, Economia Research Associates (ERA), Revised 9/7/90, Tables 11 - and II -3; Recht Hausrath & Associates. 3 As of April, 1991. City of Santa Clarita General Plan, adopted June 26, 1991, p. L-16. Public Facilities Fee Program - DRAFT REPORT Page 14 Chanter II New Development Proiectionr PROJECTIONS OF POPULATION AND EMPLOYMENT New residents will live in the dwelling units and new employees will work in the additional building space projected above. The amount of population and employment growth can be estimated using factors for residential density (population per dwelling unit) and employment density (employees per 1,000 square feet of building space). Residential density factors were derived from 1991 estimates of population and housing prepared by the California Department of Finance and based on the 1990 census. Employment density factors were derived from the fiscal impact assessment prepared for the General Plan and based on the average density projected for development in each land use category from 1991 to 2011. Table II -2 applies density factors to the projected growth from Table II -1 to estimate new residents and employees. As the table indicates, the City's resident population is expected to grow by 113,500 and its employment base by 94,700 jobs over the next twenty years. Public Facilities Fee Program -DRAFT REPORT Page 15 Chapter II New Development Proiections TABLE 11.2 NEW POPULATION AND EMPLOYMENT 1991 To 2011 Dwelling Residents New Residential Units Per Unit Residents Single-Familyl 18,900 3.10 58,600 Multi-Familyl 27,300 2.01 54,900 Total 46,200 113,500 1,000 Sq. Ft. Employees Building Per 1,000 New Commercial/Industrial Space Sq. Ft. Employees Standard Office 3,300 3.33 11,000 Retail/Commercial2 19,100 2.32 44,300 Industrial/Business Park 20,900 1.89 39,500 Total 43,300 94,800 t Single-family generally includes detached dwellings at densities less than 6.7 units per acre; multi -family includes all other units. Includes 531 employees and 3,770 employees in new hotel and recreational development, respectively. Source: Table II -1; Residential densities based on Report E-5 Preliminary, California Department of Finance (DOF), May 3, 1991, p. 23; Employment densities based on Fiscal Impact Assessment, General Plan Land Use Allocations, City of Santa Clarita, Economics Research Associates, Revised 9/7/90, Table II -2; Recht Hausrath & Associates. Based on estimated 1991 population and employment, these projections represent an average annual growth rate of 3.4 percent for -population and 6.1 percent for employment, as shown in Table II -3. Table II -3 also shows total service population growth, i.e. residents plus employees. Service population is used in the following chapters as a measure of new development's total demand for some types of additional public facilities. Public Facilities Fee Program - DRAFT REPORT Page 16 Chanter 11 New Development Projections TABLE II -3 EXISTING AND PROJECTED POPULATION AND EMPLOYMENT 1991 AND 2011 Average Annual 1991 2011 Increase Increase Population 118,800 232,300 113,500 3.4% Employment 42,100 136,900 94,800 6.1% Total Service Population 160,900 369,200 208,300 4.2% Source: 1991 population estimates from Report E-5 Preliminary, California Department of F'mance (DOF), May 3, 1991, p. 23; 1991 employment estimates are 5% above 1990 estimates from Fiscal Impact Assessment, General Plan. Land Use Allocations, City of Santa Clarita, Economics Research Associates (ERA), Revised 9/7/90, Table II -2; Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 17 III. COMMUNITY FACILITIES EXISTING FACILITIES Community facilities include community centers and special purpose sports complexes. The City does not have any existing community facilities and considers this a serious deficiency. FACILITY STANDARDS The lack of any community facilities means that no existing facility standard can be calculated for the City. The City does not have adopted standards to guide planning for community facilities, but the need for these facilities is discussed in broad terms in the Human Resources Element and Parks and Recreation Element of the General Plan. For purposes of the public facilities fee program, facility standards are derived directly from the list of specific facility needs discussed in the next section. FACILITY NEEDS AND COSTS The City has identified community facilities needs in the five-year capital improvement program (CIP).. A total ten new facilities with an estimated cost of $28.0 million are included in the 1991 CIP. However, only the five highest priority projects costing $9.9 million are included in the fee program.4 These projects are shown in Table III -1. 4 The other five projects included a bicycle motocross, a cultural center, a golf course, a lawn bowling court, and a Santa Clara River project. Public Facilities Fee Program - DRAFT REPORT Page 18 Chanter III Community Facilities TABLE III -1 COMMUNITY FACILITIES 1991 To 2011 Facility Costs Community Center $3,050,000 Fifty Meter Pool 1,150,000 Senior Center 1,140,000 Sports Complex 3,450,000 Youth Center 1,150,000 Total $9,940,000 t Building costs only. Land for these projects is included in General Government facilities (see chapter IV). Source: City of Santa Clarita. Given that the City currently does not have any community facilities, there is a large existing deficiency. As a result, the costs shown in Table III -1 must be allocated to new and existing development based on relative shares of total development in 2011. This allocation is shown in Table III -2, based on resident population. The portion allocated to new development is conservative in that the cost of the land, which is already owned by the city, is not included. TABLE III -2 ALLOCATION OF COMMUNITY FACILITIES NEEDS 1991 TO 2011 Residents Percent Cost Existing Development 118,800 51.1% 5,079,000. New Development 113,500 48.9% 4,861,000 Total 232,300 100.0910 9,940,000 Source: City of Santa Clarita; Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 19 Chanter III Community Facilities FUNDING PLAN Facilities to Correct the Existing Deficiency Existing development's $5.1 million share of community facilities costs shown in Table II -2 will have to be entirely funded by future revenues other than fees paid by new development. Over the next twenty years this equals an average of $254,000 per year. Facilities to Accommodate New Development A community facilities fee will be the primary source of funding for new development's share of these facilities. At this time the City contemplates imposing the fee on residential development only, not on commercial. and industrial development. The City has some limited empirical data on use of these facilities by people working in the City which suggests that sports facilities, such as the fifty meter pool and the sports complex, would be used by workers. If upon collecting more data it indicates workers use these facilities, the City may revise the fee at that time. Based on a total cost of $4.9 million as shown in Table III -2, the cost per new resident for community facilities is $43. The fee for each land use is shown in Table III -3. Public Facilities Fee Program - DRAFT REPORT Page 20 Chapter III Community Facilities TABLE III -3 COMMUNITY FACILITIES FEE Average Service Cost Per Fee Per Land Use Category Population Per Unit Capita Unit Residential Single -Family' 3.10 per dwelling unit $43 $133 Multi -Family' 2.01 per dwelling unit 43 86 t Single-family generally includes detached dwellings at densities less than 6.7 units per acre; multi -family includes all other units. Source: Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 21 IV, GENERAL GOVERNMENT EXISTING FACILITIES General government facilities include city office and maintenance buildings, the land associated with those structures, and miscellaneous fixed assets not contained in the other facility categories of the Public Facilities Fee Program. Often these facilities provide services to other functions of city government rather than serving the public directly. The City of Santa Clarita's existing general government facilities include buildings anticipated for temporary use as well as land expected to be developed for permanent facilities in the future. This is not unusual because the City is recently incorporated and only now is beginning to plan for needed facilities.5 For example, the City owns the office building that it anticipates to operate temporarily as the City Hall, and also owns a ridge top site planned for a permanent Civic Center. Table IV -1 summarizes the City's existing government facilities. The facilities shown in Table IV -1 vary in type, e.g. undeveloped land, buildings, and miscellaneous fixed assets. To simplify the analysis that follows, this assortment was translated into a building square foot equivalent based on a typical. cost of $200 per square foot. This cost is meant to include not only building costs, but the cost of associated land and furnishings. Based on this costs the City has an existing investment in general government facilities equal to 153,000 square feet. of building space. S See for example City of Santa Clarita Civic Center Space Needs Assessment Master Plan Study, Hughes Heiss and Associates and Patrick Sullivan Associates, October 24, 1990, Public Facilities Fee Program - DRAFT REPORT Page 22 Chapter N General Government TABLE IV -1 EXISTING GOVERNMENT FACILITIES Current Facility Description Value City Hall' 75,000 sq. ft. $11,500,000 Corporation Yard2 61,500 sq. ft.; 4.06 acres 5,865,000 Civic Center Site3 195 undeveloped acres 9,863,000 Saugus Rehabilitation Site4 400. acres 2,500,000 Miscellaneous Fixed Assets Vehicles, furnishings & equipment 871,000 Total Existing Facilities $30,599,000 Typical Cost Per Sq. Ft. $200 per sq. ft. Total Existing Facilities 153,000 sq. ft. t 1991 purchase price. 2 1990 purchase price (53,600,000) plus improvements ($2;765,000). 3 Current value of $11,000,000 was reduced 18 percent to $9,013,000 because 43 of the _ 238 total acres were allocated to unimproved park land (see Chapter VI). $850,000 was added for City expenses through FY 1991/92 for architecture and engineering for the planned Civic Center. 4 Funds reserved through FY 1991/92 budget towards total estimated cost of $10 million 5 Fixed asset inventory as of April 30, 1991. Source: City of Santa Clarita; Recht Hausrath & Associates. FACILITY STANDARDS Facility standards are more difficult to calculate for general government facilities than for other facility categories because of the wide range of facility types and lack of nationally -accepted standards. In the case of parks facilities for example, there are standards adopted by national associations regarding the appropriate number of park acres per 1,000 residents. The "level of service" standards used in transportation planning to measure traffic congestion is another example of a commonly used standard. General government facilities, on the other hand, include land, buildings, and fixed assets used for a variety of services with no particular method for equating "apples" with "oranges". Public Facilities Fee Program - DRAFT REPORT Page 23 Chanter N General Govemment Table IV -1, above, shows one method for calculating a standard for general government facilities using a typical cost per building square feet of $200 as a common denominator. This cost represents the cost of land, buildings, and fixed assets typically needed to furnish a square foot of space for general government functions. Based on the City's existing investment in these facilities equal to 153,000 square feet, and given the 1991 service population (residents plus workers) of 160,900, the existing general government facility standard is 951 building square feet per 1,000 capita. FACILITY NEEDS AND COSTS The major general government facilities currently planned for the next twenty years to accommodate build -out of the City include a new Civic Center to replace the existing City Hall and additional corporation yard space. Other planned facilities include land for community facilities, a materials recovery facility, and miscellaneous vehicles, equipment, and furnishings. In the case of the new Civic Center, a portion of the total building cost has already been financed through the purchase of the current City Hall office building, which will presumably be sold once the Civic Center is completed. These planned facilities and there costs are summarized in Table IV -2. Based on a typical cost of $200 per square foot, Table IV -2 shows that the City plans to add the equivalent of 309,700 square feet in land, buildings, and fixed assets during the next two decades. (This figure does not include the space equivalent to the value of existing assets.that•are to be used to finance new space, primarily the existing City Hall.) Combined with the 153,000 square feet that represents the existing level of facilities from Table IV -1, the total general government facilities required to serve the City's service population in 2011 is equivalent to 462,700 square feet. This is a standard of 1,253 square -feet per 1,000 capita (based on 2011 projected residents and workers). Thus, the City's planned general government facilities imply increasing the existing standard by 32 percent, from 951 to 1,253 square feet per 1,000 capita. Public Facilities Fee Program - DRAFT REPORT Page 24 Chapter IV General Govemment TABLE IV -2 PLANNED GENERAL GOVERNMENT FACILITIES 1991 TO 2011 Total Existing Net Facility Description Cost Assets Cost Civic Centerl 115,000 sq. ft. $47,013,000 $21,363,000 $25,650,000 Corporation Yards2 Land 13.14 acres 1,971,000 0 1,971,000 Buildings 114,500 sq. ft. 18,320,000 0 18,320,000 Materials Recovery Facility 30,000 sq. ft. 5,000,000 0 5,000,000 Sauus Rehabilitation Site 400 acres 10,000,000 2,500,000 7,500,000 Miscellaneous Fixed Vehicles, equip., Assets4 & furnishings 3,500,000 0 3,500,000 Total Cost $85,804,000 $23,863,000 $61,941,000 Typical Cost Per Sq. Ft. $200 per sq. ft Unfunded Facilities 309,700 sq. ft. 1 Total cost based on $9,013,000 for land plus $38,000,000 for buildings. Funded cost based on value of land, existing City Hall, and architectural and engineering expenses to date. See Table IV -1. 2 Assumes $150,000 per acre, $160 per square foot for buildings, and a floor -area ratio (FA.R.) of 0.20. 3 Funded cost equals funds reserved through FY 1991/92 budget. Includes equipment for services now provided by Los Angeles County to the City. Source: Proposed 1991 Five -Year Capital Improvement Program; FY 1991/92 Approved Budget; City staff; Recht Hausrath & Associates. FUNDING PLAN The City anticipates funding general government facilities with a combination of public facilities fees to fund those facilities necessary to accommodate new development, and other funding sources to correct the existing deficiency. Public Facilities Fee Program - DRAFT REPORT Page 25 Chanter IV General Government Facilities to Correct the Existing Deficiency The existing deficiency for general government facilities is equivalent to 302 square feet per 1,000 capita. This is the difference between the 2011 standard (1,253 square feet) and the 1991 standard (951 square feet). Applying this deficiency to the existing service population of 160,900 equals 48,700 square feet, or a cost of $9,731,000. Facilities to Accommodate New Development Based on the 1,253 square feet per 1,000 capita standard, 261,100 square feet of new and expanded general government facilities are needed to accommodate new development. At a typical cost of $200 per square foot, the total cost is $52,210,000. A portion of the City's existing general government facilities shown in Table IV -1 is being financed with debt. Specifically, $7,500,000 of the cost of the existing City Hall and $2,025,000 of the cost of the existing corporation yard are being financed with certificates of participation issued by the City, which is a form of debt. New development will finance a portion of this debt through its tax contributions to the general fund. General fund revenues will be used to fund the debt payments over time. The portion of debt-financed facilities attributable to new development depends on new development's share of the City's total service population. In 1992 new development will contribute nearly nothing to the debt service payment because it will represent such a small percentage of the citywide service population. By 2011 new development is projected to be 56.4 percent of the citywide service population, thus contributing 56.4 percent of the debt service payment in that year. It is assumed that development will occur evenly across this period and, as a result, will on average contribute half this percentage to debt service payments, or 28.2 percent, over the time period of the public facilities fee program documented here. Public Facilities Fee Program - DRAFT REPORT Page 26 Chapter IV General Government Facilities Funding Plan Summary A summary of the funding plan for general government facilities is shown in Table IV -3. New development contribution to existing facilities in the form of debt service payments must be deducted from its gross share of unfunded facility needs. Furthermore, this deduction must be added to existing development's share of the unfunded facility needs. Essentially existing development must be responsible for more of the unfunded need because new development is contributing to the existing level of funded facilities. These calculations are shown in Table IV -3. Public Facilities Fee Program - DRAFT REPORT Page 27 TABLE IV -3 FUNDING PLAN FOR GENERAL GOVERNMENT FACILITIES 1991 TO 2011 - Square Feetl Cost New Development Share of Unfunded Facilities Gross Share 261,000 $52,210,000 Less - Contribution to Financing Existing Facilities 14,600 2,916,000 Net Share 246,400 $49,294,000 Existing Development Share of Unfunded Facilities Existing Deficiency 48,700 9,731,000 Add - Savings From Financing Existing Facilities 14,600 2,916,000 Net Share 63;300 12,647,000 Total Unfunded Facilities 309,700 $61,941,000 1 Based on a typical cost of $200 per square foot. Source: Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 27 Chapter IV General Government As shown in the table above, new development's net share of the unfunded facility need is $49,294,000. This amount equals a cost of $237 per capita based on a new development service population of 208,300. Using this per capita cost the general government public facilities fee is calculated in Table IV -4. TABLE IV4 GENERAL GOVERNMENT FACILITIES FEE Average Service Cost Per Fee Per Land Use Category Population Per Unit Capita Unit Residential Single-Familyl 3.10 per dwelling unit $237 $735 Multi -Family' 2.01 per dwelling unit 237 476 Commercial/Industrial Standard Office2 3.33. per 1,000 sq. ft. 237 789 Retail/Commercial3 2.32 per 1,000 sq. ft. 237 550 Industrial/Business Parka 1.89 per 1,000 sq. ft. 237 448 t Single-family generally includes detached dwellings at densities less than 6.7 units per acre; multi -family includes all other units. Z Includes all development with more than 250 employees per 1,000 building square feet. ; Includes all development with 2.50 to 2.00 employees per 1,000 building square feet. 4 Includes all development with less than 2.00 employees per 1,000 building square feet. Source: Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 28 V. LIBRARIES This chapter documents a public facilities fee for libraries. The key difference with this part of the fee program is that library facilities are currently owned and operated by the County through a library district. Furthermore, the libraries that serve City residents and workers also serve the surrounding unincorporated area of the Santa Clarita Valley. Consequently, to properly implement a library facilities fee, it is desirable for the fee to be imposed on new development both within the City and within the surrounding Valley. The reason for this requirement is equity. For example, if the fee is imposed only on new development within the City, and growth continues in the unincorporated area, then new development in the City will not receive its fare share of new facilities. Whatever facility standard is used to determine the fee will be diluted by unincorporated area growth over time, and a future deficiency will be created that will be the city's responsibility to correct. The result of this regional service delivery is that it is desirable for both the City and the County to impose the library facilities fee on new development throughout the Santa Clarita Valley. SERVICE POPULATION PROJECTIONS Because the service area for library facilities is larger than the City, theservice population projections presented in Chapter 11 must be adjusted to include the surrounding unincorporated area. The effect is to increase existing development estimates to account for residents and workers located outside the City in 1991. Estimates for 2011, however, do not change because the City is assumed to have annexed substantially all developed areas in the Valley by that time. One additional adjustment is made to the employment projections to calculate a service population for the library. Based on surveys of library users it is clear that commercial/industrial development places demands on library facilities. However, these Public Facilities Fee Program - DRAFT REPORT Page 29 Chapter V Libraries surveys. indicate that this demand is not as high (measured on a per worker basis) as is demand from residents (measured on a per resident basis). Thus, a library system's true service population can be expressed as total residents plus a fraction of total employees. This service population is the appropriate measure of new development's need for additional library facilities. For the purposes of projecting the increase in the library's service population over the next twenty years, one worker is assumed to represent 20 percent of the demand of one resident. This assumption is conservative given that this demand factor in other communities is as high as 50 percent. This assumptions should be confirmed and adjusted as appropriate based on surveys of library users in the Santa Clarita Valley. Table V-1 shows the population and employment projections for the Santa Clarita Valley (incorporated and unincorporated areas), including the calculation of the library's service population based on the assumptions discussed above. TABLE V-1 LIBRARY SERVICE POPULATION PROJECTIONS 1991 To 2011 1991 2011 Increase Population 160,000 232,300 72,300 Employment 47,300 136,900 89,600 Adjusted Employment) 9,500 27,400 17,900 Total Service Population2 169,500 259,700 90,200 1 Based on 20 percent of total employment. 2 Population plus adjusted employment. Source: Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 30 Chanter V Libraries EXISTING FACILITIES The County library district is divided in to regions, one of which serves the Santa Clarita Valley. This region has three existing library facilities with a total of 33,900 square feet of building space containing 214,600 volumes. These facilities are listed in Table V-2. TABLE V-2 EXISTING LIBRARY FACILITIES Building Library Sq. Ft. Volumes Newhall 4,800 42,600 Valencia 24,000 127,600 Canyon Country 5,100 44,400 Total Existing Facilities 33,900 214,600 Source: County Library; Recht Hausrath & Associates. it FACILITY STANDARDS The library's existing facility standard can be calculated from the facilities shown in Table V-2, and the 1991 service population shown in Table V-1. The existing standard for building space is 200 square feet per 1,000 capita. In terms of volumes, the existing standard is 1,270 volumes per 1,000 capita. These are very low standards compared to other cities and standards established by national library associations. FACILITY NEEDS AND COSTS For purposes of the library facilities fee program, the existing standard is used to determine the facilities required to accommodate new development. - New facilities are anticipated by county library staff to cost $241 per building square foot and $30 per volume. The building cost includes $220 per square foot for construction and Public Facilities Fee Program - DRAFT REPORT Page 31 Chanter V Libraries furnishings, including shelving, and $21 per square foot for land. The latter cost is based on a cost per acre of $225,000 and a floor -area ratio (F.A.R.) of 0.25. Table V-3 applies the existing standard and the cost assumptions to the projected service population increase to calculate library facility needs over the two decades. TABLE V-3 PLANNED LIBRARY FACILITIES 1991 To 2011 Building Sq. Ft. Volumes Increase Service Population 90,200 90,200 Standard 200 1,270 Planned Facilities 18,000 114,600 Cost Per Unit $241 $30 Total Cost $4,338,000 $3,438,000 Combined Cost $7,776,000 Source: Recht Hausrath & Associates. FUNDING PLAN Using the existing standard to determine facility needs means that there is no deficiency that existing development must correct. All the new facilities shown in Table V-3 are required to serve new development just in order to maintain this standard. Thus, the total cost of $7,776,000 can be allocated to new development through a library facilities fee to ensure the existing library facilities are not burdened by new development. Based on a projected service population increase of 90,200, the cost per capita is $86. Because new workers are assumed to have.a relative demand for library facilities equal to 20 percent of residents, the fee per new worker is $17. Table V-4 shows the total library facilities fee for each land use category. Public Facilities Fee Program - DRAFT REPORT Page 32 Chanter V Lifiraries TABLE V-4 LIBRARY FACILITIES FEE - Average Service Cost Per Fee Per Land Use Category Population Per Unit Capita Unit Residential Single-Familyl 3.10 per dwelling unit $87 $270 Multi-Familyl 2.01. per dwelling unit 87 175 Commercial/Industrial Standard-Office2 3.33 per 1,000 sq, ft. 17 57 Retail/Commercial3 2.32 per 1,000 sq. ft. 17 39 Industrial/Business Park4 1.89 per 1,000 sq. ft. 17 32 Single-family generally includes detached dwellings at densities less than 6.7 units per LL i-family includes all other units. s all development with more than 2.50 employees per 1,000 building square feet. all development with 2.50 to 2.00 employees per 1,000 building square feet. all development with less than 2.00 employees per 1,000 building square feet. echt Hausrath & Associates. Facilities .: . A -AFA Page VI. PARKS & RECREATION EXISTING FACILITIES Parks and recreation facilities include open space, park land, park improvements, and trails. Currently the City has ten improved parks, five unimproved parks, two trails, and three open space areas. These parks and their respective acreage are shown in Table VI -1. As shown in the table, the City currently anticipates developing portions of the Civic Center site and Whites Canyon park that are now unimproved, while retaining the remainder as open space. The W. S. Hart park had to be treated specially in this analysis because it is a county park located in the City but that serves an area larger than the City. A "city serving' portion of the park had to be determined for use in the facility standard calculations in the next section. The park has 110 improved park acres. Thirty of these acres are used by a museum, historical society, and county district park office, facilities assumed to serve a broad region extending beyond the Santa Clarita Valley. The remaining 80 developed acres are assumed to serve the Santa Clarita Valley only, where 74 percent of the population currently lives in the City. Thus, 59.44 acres (74 percent of 80 acres) are allocated to serving city residents. To be conservative, none of the unimproved or open space acreage in the park (149 acres) is allocated to city residents. The improved parks shown in Table VI -1 have a variety of facilities. Most have picnic and children's play areas, and all have some combination of active sports facilities. These include tennis, basketball, and volleyball courts, softball and soccer fields, and swimming pools. In addition, most parks have some type of building for community use. Public Facilities Fee Program - DRAFT REPORT Page 34 Chapter V! Parks & Recreation FACILITY STANDARDS The Parks and Recreation Element of the General Plan includes standards for determining the appropriate level of park and recreation facilities. These standards address amount of acreage per park, park location, and type of park improvements. For Public Facilities Fee Program - DRAFT REPORT Page TABLE VI -1 EXISTING PARK FACILITIES Acres Acres Improved Parks & Trails Open Space Almendra 4.30 Civic Center Site2 80.00 Canyon Country 17.20 Whites Canyon 13.00 H. M. Newhall 15.00 W. S. Harts 149.00 North Oaks 230 Total 242.00 Begonias Lane 5.00 Old Orchard 5.40 Santa Clarita 7.50 Valencia Glen 5.50 Valencia Meadows 4.80 W. S. Harts 59.44 Bouquet Canyon Trail 3.88 South Fork Trail 9.09 Subtotal 139.41 Unimproved Parks Oak Springs Canyon 5.00 Calgrove 0.25 Civic Center Site2 43.00 Pamplico 5.00 Whites Canyon 15.00 Subtotal 68.25 Total Parks & Trails .207.66 I W. S. Hart park has a total of 259 acres.. See text for explanation of acreage allocation. Z The Civic Center site has a total of 238 acres with 115 acres expected to be used for the Civic Center and the remaining 123 acres expected to be used for parks and open space. Source: City of Santa Clarita; Recht Hausrath & Associates. FACILITY STANDARDS The Parks and Recreation Element of the General Plan includes standards for determining the appropriate level of park and recreation facilities. These standards address amount of acreage per park, park location, and type of park improvements. For Public Facilities Fee Program - DRAFT REPORT Page Chanter VI Parks & Recreation example, the acreage standard is five acres per 1,000 residents.6 The Element is the most comprehensive and authoritative expression of City park policies in absence of a parks master plan. The City anticipates preparing a master plan in the future to aid in implementing the Element's goals and policies. In addition to -General Plan standards, the City has adopted a Quimby park in -lieu fee based on a statutory standard. Quimby fees are governed by Government Code 66477 . and are specifically exempt from the law governing public facilities fees (Government Code 66000 et seq.). Under the former statute, the City may require residential developers that subdivide land to provide three acres of unimproved park land per 1,000 residents projected to live in the new development. For those projects that do not provide park land, there is an in -lieu fee option. How the Quimby fee will relate to the park facilities fee documented here is discussed in the "Funding Plan" section. The City has decided to use a park standard of two acres per 1,000 residents for the purposes of the public facilities fee program. In addition to this standard, all existing unimproved parks and all park land acquired in the future are to be improved to a level consistent with General Plan standards. Existing improved parks currently meet these standards. Although the five -acre per 1000 residents standard is General Plan policy, funding constraints to correct existing deficiencies suggest that the lower standard is more realistic at this time. The City anticipates raising the two -acre standard if possible in the future. The two -acre standard is higher than the current standard calculated using the City's existing park land and population. The existing standard is 1.74 acres per 1,000 residents based on the City's 1991 population and the improved and unimproved parks shown in Table VI -1, not including open space. The standard is actually: slightly lower, 1.53 acres per 1,000 residents, if the unimproved acreage is reduced to be equivalent in value to the improved acreage. The higher two -acre standard creates an existing 'deficiency of 0.47 6 City of Santa Clartla General Plait, adopted June 26, 1991, p. PR -15. Public Facilities Fee Program - DRAFT REPORT Page 36 Chapter VI Parks & Recreation acres per 1,000 residents that is the responsibility of the existing population. The City will have to correct this deficiency using funds other than revenues from park facilities fees or Quimby fees which are paid by new development. FACILITY NEEDS AND COSTS Based on discussions with City staff and local realtors, the average cost of unimproved park land is currently estimated at $225,000 per acre. This represents the cost of a parcel several acres in size located in a residential area. This cost estimate assumes that the parcel has minimal site improvements, such as curb, gutter, grading, and drainage so it is suitable for park development. Park improvement costs are assumed to be $132,000 per acre. This represents the average cost of improving park land. to General Plan standards. Based on the two -acre standard and the estimates of average costs noted above, the City will need to fund $101.0 million in new park facilities during the next twenty years. This includes acquisition and improvement of 258 acres, most of which is required to accommodate new development, though some is needed to correct existing development's deficiency. Correcting the existing deficiency also requires improvement of the 68.25 acres of currently unimproved parks. The total cost of new development's share of the new park facilities is $81.0 million. Costs to correct the deficiency are $20.0 million. These acreage and costs amounts are summarized in Table VI -2. Public Facilities Fee Program - DRAFT REPORT Page 37 Chapter VI Parks & Recreation TABLE VI -2 ALLOCATION OF PARK FACILITIES NEEDS 1991 TO 2011 Acres Costl Correct Existing Deficiency Land Acquisition 31 $ 6,975,000 Park Improvement 99 13,068,000 Total $20,043,000 Accommodate New Development Land Acquisition 227 51,075,000 Park Improvement 227 29,964,000 Total $81,039,000 Total New Facilities Land Acquisition 258 58,050,000 Park Improvement 326 43,032,000 Total $101,082,000 1 Costs based on $225,000 per acre for land acquisition and $132,000 per acre for park improvement. Source: Recht Hausrath & Associates. For comparison purposes, the Parks and Recreation Element of the General Plan documented a need for approximately 500 additional acres of parks to correct existing deficiencies, and 1,500 acres to accommodate new development 7 This analysis was based on a five -acre standard and assumes build -out of the planning area. The analysis also considers physical barriers such as major roads which results in a greater need than simple application of the 5 -acre standard. 7 Ibid., pp. PR -17, PR -19. Public Facilities Fee Program - DRAFT REPORT , Page 38 Chanter I7 Parks & Recreation FUNDING PLAN Correct Existing Deficiency The City expects to fund the costs of correcting the existing deficiency from general fund revenue sources over the next twenty years. With a total deficiency cost of $20.0 million, . the average annual cost will be $1,002,000. Accommodate New Development The City anticipates funding new development's share of new parks with a park facilities fee. This approach is supported by Policy 4.1 in the Parks and Recreation Element of the General Plan which states that the City shall "[e]ncourage the use of developer fees and land dedication incentive programs."8 One focus of the Element's goals and policies is the contribution that new residential development should make towards funding new and expanded parks because of the benefits received by new residents from . these facilities. The City also has a Quimby park in -lieu fee for residential development, as mentioned previously. For those projects that provide park land or pay the Quimby in -lieu fee, the value of the park land or amount of the fee will be credited against the park facilities fee. In addition, the Parks and Recreation Element contemplates that commercial and industrial development should contribute to funding new park facilities. It seems reasonable to have non-residential development share in the funding because of the benefits that businesses and their workers receive from park facilities. These benefits include facilities for individual exercise, for team sports sponsored by businesses, and for rest, relaxation, and eating lunch outside during the work day. Goal 11 in the Element states that the City should develop recreational facilities and services "that meet the 8 Ibid., p. PR -22. Public Facilities Fee Program - DRAFT REPORT Page 39 Chapter P7 Parks & Recreation needs of retail, commercial, and industrial. businesses in the planning area." Policy 11.2 under that goal says the City shall "[e]xplore mechanisms to obtain commercial and industrial park development fees..::9 Though workers certainly use and benefit from parks, they probably do so at levels less than residents of the City. Based on surveys of park use in Santa Clarita and similar cities, per capita use of parks by workers is assumed to be 20 percent of use by residents. This ratio will be used below to equitably apportion park facilities costs between residential and non-residential development. New development is estimated to add 113,500 more residents and 94,700 employees to the City during the next twenty years. Counting employees at 20 percent results in a service population of 132;400 (113,000 plus 20 percent of 94,700). Using this service population and the $81.0 million cost to accommodate it, new development's per capita share of new park facilities is $612 per resident and $122 per employee. The park facilities fee by land use is shown in Table VI -3. 9 Ibid. p. PR -27. Public Facilities Fee Program - DRAFT REPORT Page 40 Chapter W Parks & Recreation TABLE VI -3 PARK FACILITIES FEE Average Service Cost Per Fee Per Land Use Category Population Per Unit Capita Unit Residential Single -Family' 3.10 per dwelling unit $612 $1,897 Multi -Family' 2.01 per dwelling unit' 612 1,230 Commercial/Industrial Standard Office2 333 per 1,000 sq. ft. 122 406 Retail/Commercial3 2.32 per 1,000 sq. ft. 122 283 Industrial/Business Park4 1.89 per 1,000 sq. ft. 122 231 Single-family generally includes detached dwellings at densities less than 6.7 units per acre; multi -family includes all other units. 2 Includes all development with more than 2.50 employees per 1,000 building square feet. 3 Includes all development with 2.50 to 2.00 employees per 1,000 building square feet. 4 Includes all development with less than 2.00 employees per 1,000 building square feet. Source: Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 41 VII. TRANSPORTATION INTERIM FEE PROGRAM This chapter documents an interim transportation facilities fee. The fee is interim because the City needs to conduct additional traffic modeling to confirm the assumptions used in the fee calculation. These assumptions are based on several studies conducted to date, and include the results of traffic modelling completed for the General Plan Circulation Element. However, that modelling effort was conducted at too general a level to appropriately document a public facilities fee. The City expects to complete additional traffic modelling during the next year or two to identify more rigorously the impacts of new development. Based on the results of this modeling exercise, which should include surrounding unincorporated areas, the fee will be adjusted as appropriate. The facilities fee is based on estimates of transportation needs for the next ten years (1991 to 2001) rather than the twenty-year time period used for the other facilities in this report. Again, this is because of the need for additional modeling to determine new development impacts. The period probably will be extended. to twenty years once the City completes additional analysis. Furthermore, the transportation facility needs identified here represent only a portion of the City's total needs in this area. The City already has existing bridge and thoroughfare (B & T) districts to fund certain major road improvements. The public facilities fee program will complement the B & T districts by funding additional needed improvements to the City's road network, as well as important transit improvements. In particular, the fee program includes improvements to accommodate the cumulative impacts of growth which are difficult to attach to any specific development project. The City will remain able to impose additional traffic mitigation requirements on projects if traffic studies indicate greater impacts than would be mitigated by the existing B & T districts and transportation facilities fee program. Public Facilities Fee Program - DRAFT REPORT Page 42 Chapter VII Transportation PROJECTION OF TRIP GENERATION Projected population and employment growth commonly determines relative impacts from new development on the need for public facilities. However, the common approach in traffic analysis is to use the number of vehicle trip ends to assign traffic impacts based on the particular land use at each end of the trip. A trip end is defined as either a departure or a destination. In this chapter, "trip" is used to mean trip end. Compared to population and employment, trip generation provides a more precise estimate of the impact of new development on the need for transportation facilities. Trip generation refers to the number of trips on the road system during a given time period, and it varies throughout the day. Transportation engineers typically use peak hour trips to measure the impact of new development. Peak hour, trips represent the busiest single hour in a 24-hour period, which occurs usually at the evening rush hour. As the occasion of greatest potential congestion, peak hour trip generation determines the need for additional road or transit system capacity. Peak hour trip generation projections for the public facilities fee program are based on the projections of dwelling units and commercial/industrial space presented in Chapter II. To estimate growth for a ten-year period (1991 to 2001), the projections from Chapter II are reduced by fifty percent. For each land use category, an adjusted trip generation factor is developed based on commonly used averages from studies done nationwide and compiled by the Institute of Transportation Engineers. The trip generation rates are adjusted to reflect average trip lengths and the percentages of diverted and interrupted trips based on data from the San Diego Association of Governments. (See Appendix A.) Adjustments reflect the fact that trips that are shorter in length or are more likely to be a diversion on the way to the primary destination put less demand. on the transportation system. Estimated trip generation from new development for the next ten years is shown in Table VII -1. 1 Public Facilities Fee Program - DRAFT REPORT Page 43 Chapter VII Transportation TABLE VII -1 NEW DEVELOPMENT TRIP GENERATION PROJECTION 1991 To 2001 Land Use Residential Single -Family Multi -Family Commercial/Industrial Standard Office Retail/Commercial Industrial/Business Park Total 1991 to 2011 New Development (1991 to 2011) 18,900 dwelling units 27,300 dwelling units 3,300 1,000 sq. ft. 19,100 1,000 sq. ft. 20,900 1,000 sq. ft. Total 1991 to 2001 (50 percent of 2011 estimate) Adjusted Peak Hour Total Peak Trip Rate Hour Trips 1.15 21,700 0.62 16,900 3.55 3.37 1.32 11,700 64,400 27,600 142,300 71,200 Source: Trip Generation, Institute of Transportation Engineers; 1991; Trip Generation, San II Diego Association of Governments, 19%; Recht Hausrath & Associates. EXISTING FACILITIES Transportation facilities include roadways and related facilities for vehicle travel, transit facilities such as buses, bus yards and rail systems, and other transportation facilities such as bikeways and park-and-ride lots. The City's existing transportation facilities consist primarily of -its network of streets and highways. The City also owns and operates Santa Clarita Transit (SCT). SCT provides local and regional bus service and a dial -a -ride service. FACILITY STANDARDS Facilities standards for roads are typically referred to as "levels of service", or LOS. The LOS scale most commonly used by transportation engineers measures traffic conditions Public Facilities Fee Program - DRAFT REPORT Page 44 f] Chapter M Transportation in a range from A to F. Level D, for example, describes an intersection with average delays between 25 and 40 seconds per vehicle. When applied to a road segment, LOS D depicts a condition which borders on unstable flow where speed and ability to maneuver are severely restricted because of traffic congestion. One of the primary objectives of public transit programs is to provide alternatives to single occupancy vehicle trips, particularly peak hour trips. Thus, improvements to transit and related facilities are an alternative for enhancing levels of service on roads. The goals and policies in the Circulation of the City's General Plan recognize this trade- off. As a result, standards for transit facilities are considered in this context. In a 24-hour period, trip generation will vary for a particular intersection or road segment. For example, the intersection may have a LOS D at peak hour and a LOS B or A for most of the remainder of the day. This uneven trip distribution causes transportation planning to balance two factors. One factor is the advantage of more road or transit capacity to facilitate traffic flow at peak hours, the periods at which convenient access is most constrained. The other factor is the cost of that capacity. The majority of California cities use a peak hour LOS C as the general basis for planning improvements. Though undesirable, a peak hour LOS D is usually acceptable in situations where maintenance of a higher LOS is infeasible. The Circulation Element of the City's General Plan uses these same standards for transportation planning. FACILITY NEEDS AND COSTS The transportation facilities fee program includes three primary types of improvements to the City's transportation system: • Road intersection improvements, • Bus transit facilities, and Public Facilities Fee Program - DRAFT REPORT Page 45 Chapter VII Transportation • Commuter rail facilities. Projections of these facility needs and their costs have been summarized from a number of sources. Road improvement needs are based on a recent study by City staff and include traffic signals and signal phasing, intersection improvements, and pedestrian bridges. Bus transit improvements are based on a recent public transit needs study prepared by COMSIS Corporation for the Los Angeles County Transportation Commission (LACTC). Estimates for the commuter rail station projects were provided by city staff. The transportation projects included in the fee program have been reviewed to ensure that they are not included in any other funding program. In particular, the road improvement projects included here are not part of the existing bridge and thoroughfare districts. In addition, the LACTC is responsible for planning the regional commuter rail system and has not identified specific funding sources for the commuter rail stations to be located in the City. In fact, LACTC encourages local participation in funding regional transportation projects, such as the use of local public facilities fees. The City anticipates that the cost of facilities included in the fee program will be shared between new development and alternative funding sources. The estimated costs of these facilities and the allocation.of costs between new development and other funding sources, are shown in Table VII -2. Public Facilities Fee Program - DRAFT REPORT Page 46 Chapter VII Transportation TABLE VII -2 PLANNED TRANSPORTATION FACILITIES 1991 To 2001 New Other Total Development Funding Facility Cost Share Sources Intersection Improvements $16,395,000 $16,395,000 $0 Signal Modification & Phasing 8,132,000 8,132,000 0 Pedestrian Bridges 1,625,000 1,625,000 0 Transit Buses & Vans 7,913,000 3,957,000 3,956,000 Bus Shelters, Signs, Etc. 621,000 311,000 310,000 Bus Yard 2,200,000 2,200,000 0 Commuter Rail Stationsl 21,386,000 10,693,000 10,693,000 Total Planned Facilities $58,272,000 $43,313,000 $14,95.9,000 t Total cost estimate for 1.5 stations to be built during the next ten years.. Source: For intersections, signals, pedestrian bridges, etc. see City of Santa Clarita Preliminary Report Traffic bnpact Fee, May 22, 1991. For buses/vans, bus shelters, etc. see Rt6fic Transit Needs Santa Clarita Valley, Los Angeles County Transportation Commission by COMSIS Corporation, March 1990, Table 24, p. 151. These projects also includes City CIP project nos. 90-2100 & 91-2100. For bus yard project see City CIP project no. 90-0203. City staff provided estimate for rail station project. Recht Hausrath & Associates. FUNDING PLAN New development's share of the facilities costs shown in Table VII -2 ($43,313,000) is anticipated to be funded by a transportation facilities fee. Based on the best available information, including the traffic modelling completed for the General Plan, the.City has determined that new development's share of each project is considered equitable because: • The overall level of service for the City's road system is unlikely to improve by 2001, even with the planned traffic and transit improvements funded by new development; and Public Facilities Fee Program - DRAFT REPORT Page 47 Chapter VII Transportation • The transit improvements funded by new development are likely to result in peak hour trips being transferred from the road system to the transit system, thereby reducing new development's impact on road levels of service. With regards to alternative sources of funding for the projects in Table VII -2, the situation is different from the other public facilities fees documented in this report. In all other cases the City has an existing deficiency which it is responsible for correcting to justify the full fee imposed on new development. In the case of transportation facilities, however, the City is not required to provide the amount alternative funding indicated ($14,959,000) to justify the fee on new development. This is because, as stated above, levels of service are likely to decline even with the improvements funded by new development. In other words, new development is probably not providing all the facilities necessary to accommodate it which result in maintaining existing levels of service.. One objective of the additional traffic modelling that the City plans to undertake will be to verity this assumption. Based on new development's share of costs equal to $43,313,000, and projected new peak hour trips of 71,200, the cost per peak hour trip is $608. The transportation facilities fee is based on this cost per peak hour trip and the estimated number of peak hour trips generated by land use. The fee calculation is shown in Table VII -3 Public Facilities Fee Program - DRAFT REPORT Page 48 Chapter VII I Transportation TABLE VII -3 INTERIM TRANSPORTATION FACILITIES FEE Average Peak Hour Trip Cost/Peak Fee Per Land Use Category Generation Per Unit Hour Trip Unit Residential Single-Familyl 1.15 per dwelling unit $608 $699 Multi -Family' 0.62 per dwelling unit 608 377 Commercial/Industrial Standard Office2 3.55 per 1,000 sq. ft. 608 2,158 Retail/Commercial3 3.37 per 1,000 sq. ft. 608. r 2,049 Industrial/Business Park4 1.32 per 1,000 sq. ft. 608 803 t Single-family generally includes detached dwellings at densities less than 6.7 units per acre; multi -family includes all other units. 2 Includes all development with more than 2.50 employees per 1,000 building square feet. 3 Includes all development with 2-50 to 2.00 employees per 1,000 building square feet. 4 Includes all development with less than 2.00 employees per 1,000 building square feet. Source: Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 49 VIII. COMPARISON OF CAPITAL FACILITIES FEES BETWEEN SANTA CLARITA AND COMPARABLE COMMUNITIES This chapter presents the results of a study that compared the City of Santa Clarita's existing and proposed fees on new development with fees currently adopted in three comparable communities. Only fees that fund capital facilities were included in the analysis. The communities included in the study were: the City of Thousand Oaks, the City of Irvine, and the unincorporated areas of Los Angeles County surrounding the City of Santa Clarita. Each community shares similarities with Santa Clarita in their population, economy, and competition for new development. DESCRIPTION OF COMMUNITIES The three communities were selected from a list of alternatives provided by the City of Santa Clarita. Except for the unincorporated areas of the Santa Clarita Valley, -the communities are similar in population size. The 1991 population estimates for the three cities were provided by the California Department of Finance. The Santa Clarita Valley unincorporated area population was estimated by the Southern California Association of Governments. The population estimates for the four communities are listed below: • Thousand Oaks - 105,702 • Irvine - 111,418 • Unincorporated Santa Clarita Valley - 42,000 • Santa Clarita - 118,758 In general, similar economic conditions exist in each jurisdiction. All four communities border on the greater Los Angeles area and originally served as bedroom communities to employment centers in metropolitan Los Angeles. Over time,. as the region expanded, employment. growth spread to these surrounding communities. These communities have become increasingly interdependent as residents commute across cities and counties to get to work and home. Public Facilities Fee Program - DRAFT REPORT Page 50 Chapter VIII Public Facilities Fees Comparison The top employers in the four jurisdictions reflect dominant regional economic trends. For example, similarities exist in the types of high technology manufacturing companies located in each community. These companies all have ties to the aerospace industry which was a major factor in the economic boom experienced in the Los Angeles region during the 1950s and 1960s. Other examples of related high technology sectors showing more recent growth include electronics and telecommunications. METHODOLOGY This study compared a total of 13 capital facilities fees in the Cities of Thousand Oaks and Irvine and the unincorporated areas of Santa Clarita Valley, to existing and proposed fees for the City of Santa Clarita. The proposed fees for the City of Santa Clarita include those documented in this report (community facilities, general. government, library, parks, and transportation), as well as two in -lieu mitigation fees documented in a separate report (arts in public spaces and child care). In addition to these fees, all other capital facility fees were included to provide a comprehensive perspective on each community's funding of capital facilities by new development. The other fees included were: fire, flood control, police, schools, sewer, and water. Other fees imposed on new development that are related to reimbursing the community for operating costs associated with regulating development projects are not included in the analysis. These types of fees include, for example, application fees and building J permit fees. Fees were compared across communities using prototype projects in five land use categories. The land use categories included: single-family dwelling, multi -family dwelling, standard office, retail/commercial, and industrial/business park. Characteristics of a prototype project for each land use category were assumed in order . to provide a consistent comparison of fees imposed on new development. Though the prototypes chosen were representative of typical development projects, it is possible that Public Facilities Fee Program - DRAFT REPORT Page 51 Chapter VIII Public Facilities Fees Comparison comparing projects with different characteristics than those assumed here could yield different results. Certain fees imposed on new development in the City of Santa Clarita are the same as those imposed in.the surrounding unincorporated area. This is because the service areas of some public agencies that impose fees in the Santa Clarita Valley, such as the sewer district, overlap both communities. In this case a common fee was used for both communities in the fee calculations. This was also true for the City's proposed library fee, i.e. it was assumed that the County would impose the same fee in the unincorporated area because the library district serves the whole Valley. In other cases, there are several agencies, such as water companies, that have divided the Valley into separate service areas. This is also true for certain agencies serving the other cities included in the study. In these cases, the agency with the most representative fee structure and service area was chosen for the fee calculation. SUMMARY OF RESULTS AND CONCLUSIONS Total capital facilities fees calculated for each prototype project are summarized by community in Table_ VIII -I. The primary conclusions of this analysis are summarized below. Compared to the three other communities studied, and assuming the City of Santa Clarita adopts the proposed fees, the City generally will have: • Lower fees on residential development than the other two cities, • Higher fees on office development than the other two cities, • Fees on retail and industrial development that are lower than one city's and higher than the other's, and • Higher fees for all five prototype developments studied than the surrounding unincorporated area of the. Santa Clarita Valley. Public Facilities Fee Program - DRAFT REPORT Page 52 Chapter VIII Public Facilites Fees Comparison Source: Recht Hausrath & Associates. The most important effect of the proposed fees for the City of Santa Clarita may be the added incentive, all other factors being equal, for developers to pursue projects in the surrounding unincorporated area rather than the City. Unincorporated area development around a city can impose costs on the city to serve.new development while the city is unable to require that development to contribute to the funding of those services. An example of this situation is the traffic impacts on city streets caused by development in surrounding unincorporated areas. If adoption of the proposed fees by the City of Santa Clarita generates these impacts, the City will be under additional pressure to reach some type of agreement with the County regarding development policies. Recent court decisions have strengthened the right of the city to insist that such impacts be mitigated. Besides the issue discussed above, it is difficult to draw definitive conclusions from a fee comparison study such as this one. The results cannot be considered in isolation. First, though these fees represent real costs to developers, it is extremely difficult to estimate consequent impacts on development trends. For example, a community that is relatively' attractive to new development may experience little or no impact on its rate of growth after imposing capital facilities fees. Public Facilities Fee Program - DRAFT REPORT Page 53 TABLE VIII -1 COMPARISON OF CAPITAL FACILITIES FEES Unincorporated Prototype City of City of City of Santa Clarita Project Santa Clarita Thousand Oaks Irvine Valley. Single -Family $13,038 $17,311 $18,605 $5,108 Multi -Family $104,111 $168,615 $155,128 $95,176 Retail $445,571 $455,019 $350,462 $284,060 Office $599,721 $391,601 $542,138 $253,515 Industrial $329,937 $214,509 $646,240 $142,153 Source: Recht Hausrath & Associates. The most important effect of the proposed fees for the City of Santa Clarita may be the added incentive, all other factors being equal, for developers to pursue projects in the surrounding unincorporated area rather than the City. Unincorporated area development around a city can impose costs on the city to serve.new development while the city is unable to require that development to contribute to the funding of those services. An example of this situation is the traffic impacts on city streets caused by development in surrounding unincorporated areas. If adoption of the proposed fees by the City of Santa Clarita generates these impacts, the City will be under additional pressure to reach some type of agreement with the County regarding development policies. Recent court decisions have strengthened the right of the city to insist that such impacts be mitigated. Besides the issue discussed above, it is difficult to draw definitive conclusions from a fee comparison study such as this one. The results cannot be considered in isolation. First, though these fees represent real costs to developers, it is extremely difficult to estimate consequent impacts on development trends. For example, a community that is relatively' attractive to new development may experience little or no impact on its rate of growth after imposing capital facilities fees. Public Facilities Fee Program - DRAFT REPORT Page 53 Chapter Vlll Public Facilities Fees Comparison Second, a high level of fees may imply a high standard of capital facilities to serve new development, i.e. the costs of fees may have compensatory benefits to developers and the occupants of their projects. For example, the City of Santa Clarita is the only community studied that would impose, if adopted, an art in public places and child care mitigation programs. Conceivably such programs make the City a more attractive place for residents and businesses. Alternately, a low level of fees may mean the community is imposing higher costs on developers through other methods, such as exactions and mitigation requirements. Third, it is difficult to know how much of the capital facilities fees are (1) passed on to the building occupant in the form of higher selling prices or lease rates, (2) passed back to the land owner in the form of lower land prices, or (3) absorbed by the developer in the form of lower profits. To complicate matters, the answers to this question may vary depending on whether one is considering short term impacts, long term impacts, and the particular local and regional real estate market context at a given time. DISCUSSION BY PROTOTYPE PROJECT Explanations of the differences in each community's fees summarized above are discussed in more detail in the following sections. Tables VIII -2 through VIII -6 that follow this discussion present in detail, for each prototype project, each community's fees by fee category. Residential Development Overall, the City of Santa Clarita capital facilities fees on both single-family and multi- family projects would be lower than the other two cities and higher than the surrounding unincorporated area. The specific fees that tend to be higher in the other cities compared to Santa Clarita are traffic, parks, and sewer. In the City of Thousand Oaks, for example, a higher sewer fee explains most of the difference with the City of Santa Public Facilities Fee Program - DRAFT REPORT Page 54 Chanter V111 Puhlic V- Fees Comparison Clarita's total fee for either of the residential projects. The parks fee in both Thousand Oaks and Irvine also explains a significant portion of the difference in fees. With regards to the surrounding unincorporated area, the City's fees are not significantly higher. The major reason for the higher City fees are the general government and community facilities fees, fees which are not imposed by the County. Commercial/Industrial Development The major differences in capital facilities fees between Santa Clarita and the other two cities for the commercial/industrial prototype projects are: • The City of Santa Clarita's proposed fees include several categories not found in the other communities, including parks, art in public places, and child care. • Traffic fees explain a large portion of the differences between the cities' total fees, with Thousand Oaks having the lowest, followed by Santa Clarita and Irvine with the highest. • Thousand Oaks' high sewer fee partially offsets what otherwise would be a generally low total fee compared to the other cities. Compared to the surrounding unincorporated area of the Santa Clarita Valley, the City's fees generally are twice the level of fees in the County. The major reasons for the higher City fees are: • If the proposed fees are adopted the City will funding facilities not provided by the County to new commercial/industrial development, e.g. parks, art in public places, and child care; and • The City has a substantially higher traffic fee, again primarily because its standards are higher than the County's. Public Facilities Fee Program - 55 Chapter VIII Public Facilities Fees Comparison Public Facilities Fee Program - DRAFT REPORT Page 56 TABLE VIII -2 SINGLE-FAb9ILV RESIDENTIAL ONE UNIT, 1,800 SQ. FT., $300,000 VALUATION City of Unincorpor'd City of . Thousand City of Santa Clarita Fee Category Santa Clarita Oaks Irvine Valley Traffic $3,342 $2,020 $5,000 $3,100 Parks $1,928 $3,000 $6,750 $2,080 Library $267 $1,200 $0 $0 General Government $725 $0 $1,500 $0 Sewer $1,630 $5,525 $1,500 $1,630 Water $1,890 $2,280 $850 $1,890 Schools $2,808 $2,808 $2,808 $2,808 Police $0 $84 $0 $0 Fire $326 $121 $197 $326 Flood Control $0 $273 $0 $0 Community Facilities $375 $0 $0 $0 Art in Public Spaces $0 $0 $0 $0 Child Care $0 $0 $0 $0 Total $13,291 $17,311 $18,605 $11,834 Source: Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 56 Chanter VIII Public Facilities Fees Comparison Public Facilities Fee Program -DRAFT REPORT page 57 TABLE VIII -3 MULTI -FAMILY RESIDENTIAL 12 UNITS, 14,400 SQ. FT., $1,000,000 VALUATION City of Unincorpor'd Fee Category City of Santa Clarita Thousand Oaks City of Irvine Santa Clarita Valley Traffic $26,772 $23,472 $29,000 $26,040 Parks $15,000 $30,000 $73,500 $15,413 Library $2,076 $1,200 $0 $0 General Government $5,640 $0 $5,000 $0 Sewer $11,736 $66,300 $14,400 $11,736 Water $16,912 $22,572 $8,400 $16,912 Schools $22,464 $22,464 $22,464 $22,464 Police $0 $650 $0 $0 Fire $2,611 $905 $2,364 $2,611 Flood Control $0 $1,052 $0 .$0 Community Facilities $2,916 $0 $o $o Art in Public Spaces $0 $0 $0 $0 Child Care $0 $0 $0 $0 Total $106,127 $168,615 $155,128 $95,176 Source: Recht Hausrath & Associates. Public Facilities Fee Program -DRAFT REPORT page 57 Chapter WH Public Facilities Fees Comparison Public Facilities Fee Program - DRAFT REPORT Page 58 . TABLE VIIIA RETAIL/COMMERCIAL 50,000 SQ. FT., 5 ACRES, $2,426,110 VALUATION City of Unincorpor'd City of Thousand City of Santa Clarita Fee Category Santa Clarita Oaks Irvine Valley Traffic $123,100 $39,320 $256,131 $77,500 Parks $14,400 $0 $0 $0 Library $1,950 $0 $0 $0 General Government $11,700 $0 $12,131 $0 Sewer $136,450 $353,600 $35,000 $136,450 Water $48,045 $32,784 $25,000 $48,045 Schools $13,000 $13,000 $13,000 $13,000 Police $0 $2,500 $0 $0 Fire $9,065 $3,300 $9,200 $9,065 Flood Control $0 $10,515 $0 $0 Community Facilities $0 $0 $0 $0 Art in Public Spaces $24,261 $0 $0 $0 Child Care $45,600 $0 $0 $0 Total. $427,571 $455,019 $350,462 $284,060 Source: Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 58 . Chapter V111 Public Facilities Fees Comparison Public Facilities Fee Program - DRAFT REPORT Page 59 TABLE VIII.5 STANDARD OFFICE 80,000 sQ. FT., 5.25 ACRES, $5,321,848 VALUATION City of Unincorpor'd City of Thousand City of Santa Clarita Fee Category Santa Clarita Oaks Irvine Valley Traffic $240,043 $57,920 $417,009 $81,375 Parks $33,040 $0 $0 $0 Library $4,560 $0 $0 $0 General Government $62,320 $0 -$26,609 $0 Sewer $98,400 $265,200 $36,750 $98,400 Water $38,436 $27,360 $26,250 $38,436 Schools $20,800 $20,800 $20,800 $20,800 Police $0 $4,000 $0 $0 Fire $14,504 $5,280 $14,720 $14,504 Flood Control $0 $11,041 $0 $0 Community Facilities $0 $0 $0 $0 Art in Public Spaces $53,218 $0 $0 $0 Child Care $126,960 $0 $0 $0 Total $692,281 $391,601 $542,138 $253,515 Source: Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 59 Chapter VIII Public Facilities Fees Comparison Public Facilities Fee Program - DRAFT REPORT Page 60 TABLE VIII.S INDUSTRIAL/BUSINESS PARK 100,000 SQ. Fr., 6.56 ACRES, $3,512,040 VALUATION City of Unincorpor'd City of Thousand City of Santa Clarita Fee Category Santa Clarita Oaks Irvine Valley Traffic $116,712 $70,096 $505,560 $61,008 Parks $18,720 $0 $0 $0 library $2,560 $0 $0 $0 General Government $35,360 $0 $17,560 $0 Sewer $21,000 $56,576 $45,920 $21,000 Water $16,015 $38,441 $32,800. $16,015 Schools $26,000 $26,000 $26,000 $26,000 Police $0 $3,000 $0 $0 Fire $18,130 $6,600 $18,400 $18,130 Flood Control $0 $13,796 $0 $0 Community Facilities $0 $0 $0 $0 Art in Public Spaces $35,120 $0 $0 $0' Child Care $119,040 $0 $0 $0 Total $408,657 $214,509 $646,240 $142,153 Source: Recht Hausrath & Associates. Public Facilities Fee Program - DRAFT REPORT Page 60 CITY OF SANTA CLARITA ART IN PUBLIC PLACES & CHILD CARE FACILITIES MITIGATION PROGRAM 11::01 ' 'I: 1 MARCH 1992 RECHT HAUSRATH & ASSOCIATES URBAN ECONOMISTS 1212 Broadway, Suite 1700 Oakland, California 94612 MITIGATION PROGRAM FOR THE CITY OF SANTA CLARITA TABLE OF CONTENTS I. INTRODUCTION ..................................... 1 II. ART IN PUBLIC PLACES .............................. 2 INTRODUCTION .................................. 2 PROGRAM DESCRIPTION .......................... 2 III. CHILD CARE ...................................... 4 INTRODUCTION . ......... .................. . 4 CHILD CARE POLICY ............................. 4 LEGAL AUTHORITY .............................. 5 PROGRAMS IN OTHER CITIES ...................... 5 MITIGATION PROGRAM REQUIREMENTS ........... 6 MITIGATION REQUIREMENTS CALCULATION ........ 9 Public Art & Child Cwu Mitigation PmV= - DRAFT REPORT Page i I. INTRODUCnON This report provides documentation for two programs designed to mitigate certain impacts of new development in the City of Santa Clarita. The purpose of the art in public places mitigation program is to moderate some of the negative visual impacts of new development. The child care mitigation program's objective is to ensure that new development provides a minimum level of child care facilities for children of families associated with that development. Public Art & Child Care Mitigation Program - DRAFT REPORT Page 1 II. ART IN PUBLIC PLACES INTRODUCTION The City of Santa Clarita is considering an art in public places mitigation program that would require public art be provided in conjunction with certain types of development. The type of development targeted by the programm generally includes fairly large projects with reasonably significant impact, i.e. a noticeable difference in the City before and after the development. Developments of this scale would be required to provide public art equal to at least one percent of the building permit value of the development. For projects which are large enough to cause a significant impact but too small to feasibly make an on-site public art investment, an in -lieu fee option is allowed. PROGRAM DESCRIPTION The City is concerned that new development meet appropriate standards of attractiveness. If they fail to do so they have the potential to negatively impact the quality of life in Santa Clarita. In particular, large development projects contribute to the increasing density and urbanization of the Santa Clarita Valley, and hence can adversely affect the health and welfare of its citizens. The City appropriately, through its zoning ordinance, already places some conditions upon new development to mitigate these adverse impacts. Common conditions imposed through the zoning ordinance include height and density restrictions and set -back requirements. These types of conditions place physical limitations upon the size of new development. The City recognizes additional negative impacts that are not fully addressed by its existing land use ordinances. Specifically, the City recognizes the need to provide visual and cultural stimulation as a balance to increasing density and urbanization. With the art in public places mitigation program, this balance can.be maintained through either on-site -dedication of art or through collection. of in -lieu fees to provide art on public Public Art & Child Care Mitigation Program - DRAFT REPORT IPage 2 Chapter II Art in Public Places land. By collecting in -lieu fees and placing art, the potential adverse effects of cumulative new development can be mitigated. By imposing either option, the City is endeavoring to fulfill its commitment to protect the visual quality of its citizens as the City continues to grow and increase in density. Because size is a determining factor in causing the negative impacts discussed here, development projects subject to the art in public places program would only include projects over a specified size. Those projects that would be subject to the program are as follows: • Commercial and industrial projects over $500,000 in building permit value, • Multi -family residential projects over $1,500,000 in building permit value, and • Single-family subdivisions over thirty units. A number of cities already have Art in Public Places programs.. The large majority of these require public art equal to one percent of the project building permit value. This is the same requirement that the City of Santa Clarita is considering, applied to those projects listed above. The developer may either provide art within the project costing at least this amount, or contribute an in -lieu fee equal to this amount. The.City will develop guidelines for implementing this program. These guidelines will address the review process for art to be placed by the developer, and the process for expenditures of in -lieu fee revenues. Unlike the existing zoning restrictions previously which place constraints on projects, the art in public places program would not place additional size limitations on new development. The program would help to mitigate some of the adverse effects of significant new development without resorting to new restrictions on that development. Public Art & Child Care Mitigation Program - DRAFT REPORT Page 3 III. CHILD CARE INTRODUCTION This chapter documents the mitigation required by non-residential development to support the City of Santa Clarita's child care policy objectives. The objective of the child care mitigation program is to insure that at least a minimum amount of new child care facilities will be available in new commercial and industrial projects to accommodate the needs of the employees, particularly those with limited incomes. This child care mitigation program represents the culmination of over three years of work and research that the City has undertaken to address the issue of child care. Representatives from the City, business community, educational institutions and local citizen groups convened as the Santa Clarita Valley Child Care Task Force in 1989. That same year the City applied for a local coordination grant from the California State Department of Education. The awarded grant allowed the City to hire a six-month child care coordinator, conduct a needs assessment to identify services and needs, support a child care resource and referral office, establish a technical committee to examine land use regulations and the development approval process related to child care facilities, and develop a long-range plan for child care in the Santa Clarita Valley. The following sections explain the City's child care policy, its legal authority to implement a mitigation program, similar programs in other cities, and the City's proposed program. CHILD CARE POLICY The provision of quality child care for children between ages 0 and 12 years'is a policy goal of the City of Santa Clarita under the Human Resource Element of the General Plan. During the early 1980's, great numbers of young families chose to move into Santa Public Art & Child Care Mitigation Program - DRAFT REPORT Page 4 Chapter III Child Can' Clarita because of the City's abundant supply of affordable housing, and now employment opportunities in the Valley serve as an added attraction. Employment increased from 23,209 in 1982 to 33,600 in 1988, and the city projects that employment will grow to over 120,000 by year 2010. The influx of young families to the City caused an upturn in children (ages 0 to 12 years). Estimates indicate that the City experienced an increase of 52 percent in children in this age group between 1980 and 1990. Employment growth in the Valley also added to the need for child care for those workers that prefer care near their place of employment. Given the critically low supply of child care and its cost, affordable services for low and moderate income households are even more scarce. As a result, the City's child care policy targets the low and moderate income group to best ensure provision of adequate' child care facilities which the City considers imperative to its future. LEGAL AUTHORITY The child care program presented in this report is intended to provide a portion of the facilities needed by the employees in new developments. The City's legal authority for the program is derived from constitutional police powers codified in the City's land use ordinances. The program is not a public facilities financing program based on development impact fees imposed under_ the authority of California Government Code Section 66000 et seq. (AB 1600), because the City does not currently own nor does it intend to provide publicly -owned child care. PROGRAMS IN OTHER CITIES Various cities and counties throughout California_ and other states have implemented child care mitigation programs. Some programs, such as the City of Irvine's, are only Public Art & Child Care Mitigation Program - DRAFT REPORT Page 5 Chanter III Chr7d Core imposed on residential development, while other programs apply to all development. Of the programs reviewed, most calculate child care impacts based on either the total square footage of non-residential development or number of proposed housing units in the cases of residential development. Implementation of child care mitigation programs also differ. Some cities offer incentives for commercial project in exchange for added allowable building space or swifter permit processing. Other cities have derived schedules requiring minimum amounts of child care facility space or payment of an in -lieu fee based on the total proposed project size. MITIGATION PROGRAM REQUIREMENTS The City's child care mitigation program is designed to provide child care needed by workers in a new development. The program only targets workers from low and moderate income families, and only children living in those families for whom their parents are likely to. seek licensed child care. In other words, the child care capacity needed is calculated based on the need for licensed facilities for children of low and moderate income employees. Commercial and industrial projects may accommodate this need either by providing adequate space for licensed child care facilities on-site or off- site, or by payment of a fee in -lieu of providing such facilities. Table 111-1 shows the number of workers, number of children, and the associated amounts of child care space by type of land use calculated for the purposes of this program. Public Art & Child Core Mitigation Program - DRAFT REPORT Page 6 Chapter III Cht7d Care TABLE III -1 CHILD CARE FACILITIES NEEDED BY COMMERCIAL/INDUSTRIAL DEVELOPMENT Children Child Care Space Needs (Sq. Ft.) Age Age Age 0-5 Age 6-12 Land Use Workers 0 to 51 6 to 19 Indoor Outdoor Indoor Outdoor Per 1,000 Square Feet of Building Space Category Standard Office 333 0.06 0.05 3.72 4.65 2.35 3.52 Retail/ Commercial 232 0.04 0.03 2.59 3.24 1.63 2.45 Industrial/ Business Park 1.89 0.04 0.03 2.11 2.64 1.33 2.00 1 Children of local and non -local workers likely to seek a licensed child care program. 2 Only children of local workers likely to seek a licensed child care program. Source: Recht Hausrath & Associates. Table III -2 summarizes the results of Table III -1 by showing the total amounts of indoor and outdoor child care space required for a development by type of.land use. TABLE III.2 SUMMARY OF CHILD CARE FACILITIES NEEDS Sq. Ft. of Child Care Space Per 1,000 Sq. Ft. of Building Space Land Use Category Indoor Outdoor Standard Office 6.07 8.17 Retail/Commercial 4.22 5.69 Industrial/Business Park 3.44 4.64 Source: Recht Hausrath & Associates. Public Ari & Child Care Mitigation Program - DRAFT REPORT Page 7 Chapter III Child Care In some situations the developer may feel that the addition of child care facilities is not appropriate for the project. This is likely to be especially true for smaller projects. In these situations, the developer can choose to pay the in -lieu fee shown in Table III -3 instead of providing on-site or. off-site child care facilities. The fee calculation is based on the amount of child care space by land use type shown in Table III -2, and building construction costs of $125 per square foot and playground construction costs of S16 per square foot. TABLE III.3 CHILD CARE FACILITIES IN -LIEU FEE Fee Per 1,000 Land Use Category Square Feet1 Standard Office $889 Retail/Commercial 620 Industrial/Business Park 505 1 Based on space requirements shown in Table III -1 and costs of 5125 and $16 per square foot for indoor and outdoor space, respectively. Source: Table III -1; Recht Hausrath & Associates. Prior to adoption of this program several issues should be addressed regarding program implementation. The key issue is to what extent and how should the City ensure that the program reaches the target population, i.e. low and moderate income families employed in the City who seek licensed day care. For, example, what are the appropriate requirements regarding service to low and moderate income families to place on a developer who provides child care facilities? In addition, how does the City plan to administer the in -lieu fees received in support of the program's goals? Finally, what is the City's legal obligation to ensure that the target population is reached by the program? In other words, how much flexibility does the City have in designing the program? Public Art & Child Care Mitigation Program - DRAFT REPORT I Page 8 Chanter III Child Care MITIGATION REQUIREMENTS CALCUI.ATION The factors that determine the amount of child care space to be provided by a commercial or industrial project are discussed below followed by step-by-step summary of the formula. The number of workers per project was based on the employment density (workers per 1,000 square feet) by type of land use. Total workers were translated into number of households based on the average number of workers per household, which is typically between one and two. Next, child care needs of workers that live and work in Santa Clarita Valley (local workers) and workers that commute from outside the Valley (non -local workers) were considered separately. The need to distinguish between local and non -local workers is because of differences in income levels and child care needs between each group. A 1989 survey conducted by a local developer found that 40 percent of the workforce in a local industrial park lived in the City. This figure appears to be reasonable, given the census data for other cities of similar characteristics. Based on this figure, we estimated the percent of worker households that lived and worked in the City of Santa Clarita. The remaining worker households reflect those: that commute from outside the City for employment. The local and non -local households were then converted into local and non -local families because families most closely represent users of child care. The ratios used to convert local and non -local households to families was based on the percentage of families to households in the City of Santa Clarita and the County, respectively. The City's population has relatively high incomes compared to the county, so the salary range of the City's residents (local workers) are probably different from the income levels of the non -local workforce. However, the cost of child care does not vary for local Public Art & Child Care Mitigation Program - DRAFT REPORT Page 9 Chanter III Child Gene versus non -local workers, so the same low and moderate income level should be applied to both groups. What varies is the distribution of income within each group, so application of the same definition of low and moderate income yields different percentages of families in each group that have this income level or less. The low and moderate income level was based on 80 percent of the County's median family income. For the non -local workforce, this income level was applied to the County's family income distribution to estimate the percentage of non -local families with low and moderate incomes. For local families, the same low and moderate income level was applied to the City's family income distribution to estimate the percentage for local families. Child care needs are different for local and non -local workers.. Given that most parents prefer to have child care near their homes, the need for child care facilities near the place of employment by non -local workers was assumed to be less than the. need of such care by local workers. In addition, since school age children (ages 6 to 12) of non -local workers would need transportation from school sites to their parents' work site, child care programs for ages 6 to 12 were assumed to be used exclusively by local workers. Therefore, the program targets children ages 0 to 5 from non -local families and children ages 0 to 12 from local families. Only the number of children of workers that need and want licensed child care located in the City of Santa Clarita are accounted for in the formula. As indicated by the Community Child Care Assessment Report, only about half of parents with children use licensed child care.' Most other parents use either family day care or care provided at their own home by an unlicensed provider or a relative. t Senter, Sheri A. and Rowe Becker, Mary, The City of Santa Clarita Child Care Coordination Grant, Community Child Care Assessment Analysis, National Pediatric Support Services, July 1990. Public Art & Child Care Mitigation Program - DRAFT REPORT Page 10 Chanter III Child Care The report also found that most parents prefer to: have child care located near their place of residence. Some parents, however, do prefer child care facilities located near work. Thus, we only count the portion of non -local workers that prefer child care near work, i.e. within the City of Santa Clarita. This distinction is not necessary for the local workers. Given all these considerations, appropriate calculations must be made to estimate the number of children of workers accommodated by new development that would require licensed child care located within the City. The following steps describes the child care mitigation formula. 1. The number of workers a non-residential development will generate is estimated by the total square footage of the project (in 1,000 square feet units) multiplied by the number of employees per 1,000 square feet by land use type. Employment densities and land use categories are from the fiscal impact assessment prepared for the General Plan and are shown in Table III -1. 2. The number of workers is used to calculate the number of households. This is done by dividing the number of workers by the average number of workers per household (1.48). The average number of workers per household is based on the Southern California Association of Government projections for 2010 for the Santa Clarita Valley. 3. Multiply the total number of households by 0.40 to calculate those households with local workers. The remainder (60 percent) as assumed to be non -local households. This figure is based on a local developer's 1989 survey of workers in an industrial park located in the City. 4. Convert the number of households to the number of families for local and non -local worker households. According to Urban Decision Systems, families represent 0.79 of the households in the City. In the County, non -local families equal 0.64 of total households. 5. Multiply the number of local families by 0.26, to calculate the number of local workers from low and moderate income families. For non -local families, multiply by 0.45. These factors are based on application of the County's low and moderate income level which is up to 80 percent of the County median income. This income level is applied to the distribution of family incomes in the City for local workers, and to the distribution of family incomes in the Public Art do Child Care Mitigation Program - DRAFT REPORT Page 11 Chapter III Child Care County for non -local workers, to derive the factors stated above. Data is derived from Urban Decision Systems reports for 1990. 6. Calculate the number of children per local family by multiplying the number of local families by 0.43 for children ages 0 to 5 and by 0.54 for children ages 6 to 12. Calculate the number of children ages 0 to 5 per non -local family by multiplying the number of non -local families by 0.45. The population of children between 0 and 12 age is estimated separately for the City and the County based on reports by Urban Decision Systems for 1990. 7. Children from both local and non -local low and moderate income families are multiplied by 0.47 to calculate the number whose parents are likely to seek licensed child care. This ratio is from the Community Child Care Assessment Report. 8. For children from non -local families, multiply by 0.30 to account for only those workers that prefer to have child care near work. The Community Child Care Assessment Report indicated that this portion of families prefers child care located near their place of work or have no location preference. The result to this point in the calculations for the number.of children per 1,000 square feet of building space are shown in Table III -1 9. The total amount of space required for children depends on the age range. Based on the City of Santa Clarita's guidelines, children ages 0 to 5 need an average of 60 square feet of indoor space and 75 square feet of outdoor area. Children ages 6 to 12 require less area, 50 square feet of indoor and 75 square feet of outdoor space. See Tables I11-1 and III -2 for the schedule of child care space required by type of building use. Public Art do Child Care Mitigation Program - DRAFT REPORT Page 12 APPENDIX A TECHNICAL ADJUSTMENTS TO TRIP GENERATION RATES Trips generated by new residential, retail, office, and industrial land uses have significant differences. These differences should be factored into the way the cost of new traffic facilities are allocated to each type of land use. Without adjustment, imposing the same. cost per trip on, for example, retail as the cost for commute trips, may be inequitable. This level of refinement is not usual for traffic impact fees in California, or, for that matter, in other parts of the United States. The San Diego Association of Governments (SANDAG) completed an exhaustive survey of travel behavior throughout the San Diego region. The results were published in Analysis of Trip Diversion, January 12, 1988, and revised November 1990. Data was based, in part, on information compiled from SANDAG's third and most recent survey of travel behavior in 1986 (1986 Travel Behavior Analysis, Volume 1, Results of Surveys, September 1986). The survey analyzed the travel patterns of 2,754 households in conjunction with a roadside survey conducted by Caltrans during the same period. SANDAG has also completed additional computer analysis of more recent trip data. The results from this work have been used to calculate discounts for interrupted trips based on weighted average trip lengths for different land uses. INTERRUPTED TRIPS Many trips include stops along the way at secondary destinations before arriving at the final, or primary, destination. The Institute of Transportation Engineers (ITE) trip generation rates used in this study include all stops regardless of whether the tripend is actually at the trip's primary destination or is an "interrupted" tripend. Interrupted tripends may be characterized as either being passby (the stop lay directly on the route between the trip origin and primary destination) or diverted (out of the way of the shortest route to the primary destination). Passby tripends do not add to the total traffic Public Facilities Fee Program - DRAFT REPORT Page A -I Appendix A Technical Adiustmentr to Tiro Generation Rates volume, since the vehicle would be making the same trip anyway. Diverted tripends only require additional road capacity depending on the distance driven out of the way. Every type of land use includes some portion of interrupted tripends, ranging from less than one percent to over fifty percent of total trips. Moreover, the primary and interrupted trips vary in average length depending on land use. If all tripends were given equal weight, the trip generation rates would misstate the aggregate traffic impacts of new development. For example, the fee schedule would penalize land uses that attract larger percentages of interrupted tripends or have shorter than average trip lengths. The adjustment for interrupted trips occurs in two steps which are summarized below .and further discussed in the following sections: 1. The weighted average trip length by land use is calculated based on the average length and frequency of primary and diverted trips. The result is converted to a trip length factor by dividing it by the average trip length of all trips in the system. 2. The trip length factor is reduced by the percentage of passby trips, because these trips have no impact on system capacity and have not been accounted for in step (1)• - DIVERTED TRIP AND TRIP LENGTH ADJUSTMENT Different types of land use are likely to generate longer or shorter trips than the length of the average trip for the system as a whole. The average trip length adjustment is necessary to more equitably allocate the cost of additional road capacity among the various types of land use. The variation around the system -wide average trip length serves as the basis for calculating weighted trip length factors. For example, industrial parks attract workers from all over the region and deliveries from outside the region, thus the average type length is longer than the average for the system. Trips to and from convenience markets will be very short on average because Public Facilities Fee Program -DRAFT REPORT Page A-2 Appendix A Technical Adiustments to Trip Generation Rates these stores locate in the center of a discrete residential market area. Homes typically have a trip length close to the average because they generate both longer home to work commute trips and shorter trips for shopping, schools and.visits to other homes. The relative differences in average trip lengths are determined by calculating the ratio of a particular land use's average trip length to the trip length for the system as a whole. These ratios may be expressed as factors greater or less than one and are used to adjust an impact fee fora particular land use. The adjustment for diverted trips and trip lengths is demonstrated in the following example. Suppose all trips to and from a gas station consisted of the following four types of trips: 1) 20.1 percent were primary trips that averaged 5.09 miles; 2) 54.1 percent were diverted one mile or more and averaged 3.28 miles; 3) 17.9 percent of trips diverted less than a mile and were on average 0.46 mile long; and 4) 7.9 percent were passby trips that. by definition have no length (zero miles). The weighted average diverted trip length for all four types of trips to and from a gas station is calculated by the equation below. (20.1%x5.09miks) + (54.1%0.28miks) + (17.9%x0A6miks) + (7.9%0.00miks) 2.88 miles Now assume that the weighted average trip length for all trips on the system is 6.89 miles. The diverted trip adjustment factor is 2.88 miles divided by 6.89 miles, or 0.42. PASSBY TRIP ADJUSTMENT The formula above only adjusts for diverted trips based on trip length and frequency. Passby trips, however, have no trip length so are not included in that adjustment. The gross peak hour trip rate must still be corrected for passby trips, which, to continue the example, account for 7.9 percent of gas station trips. The adjustment factor calculated Public Facilities Fee Program - DRAFT REPORT Page A-3 y + � Appendix A Technical Adiustments to Trip Generation Rates above of 0.42 is multiplied by one minus the percent of passby trips, i.e. 92.1 percent, to calculate a total adjustment factor of 0.39. COMBINED TRIP GENERATION RATE ADJUSTMENT The ITE peak hour trip rate. for gas stations is 15.18 per pump. Adjusted by a factor of 0.385 to account for all interrupted trips and average trip lengths, the rate becomes 5.84 peak hour trips per pump. This final result is used to calculate the public facilities fee. Calculation of. the adjustment factor is shown in Table A-1 on. the following four pages. These factors are used to calculate an adjusted peak hour trip rate as shown in Tables VII -1 and VII -3 in Chapter VII. Public Facilities Fee Progrmn - DRAFT REPORT Page A-4 TABLE A-1 INTERRUPTED TRIPS & TRIP LENGTH ADJUSTMENT FACTORS Diverted . Diverted Diverted Diverted All Trips: Trip Total Primary 1 Mile Less Than Primary 1 Mile Less Than Average Length Passby Adjust - Land Use Category Stops or More 1 Mile Stops or More 1 Mile Length Factors Trips ment Factor (Average Trip Length in Miles) (Percent of Total Trips) (Afiles) (Percent) RESIDENTIAL Single -Family Detached 8.54 4.45 0.48 86.6% 10.8% 13% 7.88 1.14 13% 1.13 Multi -Family (<20 DU/acre) 8.54 4.45 0.48 86.6% 10.8% 13% 7.88 1.14 13% 1.13 Multi -Family (> =20 DU/acre) 8-54 4.45 0.48 86.6% 10.8% 13% 7.88 1.14 13% 1.13 Mobile Home 8.54 4.45 0.48 86.6% 10.8% 13% 7.88 1.14 13% 1.13 Retirement Community 8.54 4.45 0.48 86.6% 10.8% 13% 7.88 1.14 13% 1.13 Congregate Care Facility 9.30 5.92 0.76 70.0% 29.3% 0.7% 8.25 1.20 0.0% 1.20 OFFICE Standard Office (<100,000 sq. ft.) 10.04 5.60 039 76.6% 23.4% 0.0% 9.00 131 0.0% 131 Large Office (> =100,000 sq. ft.) 11.17 5.44 0.13 80.2% 15.6% 4.2% 9.81 1.42 0.0% 1.42 Medical Office 8.22 4.66 0.45 64.5% 27.6% 2.7% 6.60 0.96 5.2% 0.91 Government Office 8.98 4.38 0.39 52.4% 33.1% 8.5% 6.19 0.90 6.0% 0.85 INDUSTRIAL Business Park (w/ commercial) 9.91 6.40 0.49 84.8% 13.6% 1.6% 9.28 1.35 0.0% 135 Light Industry (w/out commercial) 9.91 6.40 0.49 84.8% 13.6% 1.6% 9.28 135 0.0% 135 Manufacturing 1239 5.20 0.44 94.9% 3.3% 1.8% 11.94 L73 0.0% 1.73 Warehousing 1239 5.20 0.44 94.9% 33% 1.8% 11.94 1.73 0.0% 1.73 Research & Development 9.91 6.40 0.49 84.8% 13.6% 1.6% 9.28 135 0.0% 135 TABLE A-1 INTERRUPTED TRIPS & TRIP LENGTH ADJUSTMENT FACTORS Land Use Category Primary Stops Diverted 1 Mile or More Diverted less Than 1 Mile' Primary Stops Diverted 1 Mile or More Diverted Less Than 1 Mile Mile All Pass Tri by Total Adjust - ment SHOPPING CENTERS (Average Trip Length in Miles) (Percent of Total Trips) (Percent) Factor Super Regional (> =500,000 sq. ft.) Regional (300,000.499,999 sq. R.) Community (100,000-299,999 sq. ft.) Neighborhood (<100,000 sq. ft.) RETAIL SHOPS 7.04 7.04 4.59 6.27 3.86 3.86 4.54 3.50 0.45 0.45 OSl 0.45 44.8% 44.8% 46.8% 393% 36.6% 36.6% 31.7% 46.7% 16.6% 16.6% 15.6% 9.6% 4.64 4.64 3.67 4.14 0.67 0.67 0S3 0.60 2.0% 2.0% 4.4% 0.66 0.66 0.57 Convenience Market Supermarket Furniture Store Other Retail RESTAURANTS &BARS 5.09 6.27 6.27 6.27 3.28 3-50 3.50 3.50 0.46 0.45 0.45 0.45 20.1% 393% 393% 393% 54.1% 46.7% 46.7% 46.7% 17.9% 9.6% 9.6% 9.6% 2.88 4.14 4.14 4.14 0.42 0.60 0.60 0.60 7.9% 4.4% 4.4% 4.4% 039 0.57 0S7 0S7 Fast Food (with drive-through) High Turnover (sit down) Quality (sit down) • FINANCIAL SERVICES 5.09 5.83 5.83 3.28 4.59 4.59 0.46 0.43 0.43 20.1% 51.1% 51.1% 54.1% 38.8% 38.8% 17.9% 7.8% 7.8% 2.88 4.79 4.79 0.42 0.70 0.70 7.9% 23% 23% 039 0.68 0.68 Bank (walk-in only) Bank (with drive-through) Savings &Loan 6.13 6.13 6.13 2.85 285 2.85 0.40 0.411 0.40 1 41.1% 41.1% 41.1% 39.2% 39.2% 39.2% 163% 163% 163% 3.70 3.70 3.70 0S4 0S4 0S4 3.4% 3.4% 3.4% 0.52 0.52 0.52 TABLE A-1 INTERRUPTED TRIPS & TRIP LENGTH ADJUSTMENT FACTORS Diverted Diverted Diverted Diverted All Trips: Trip Total Primary 1 Mile Less Than Primary 1 Mile Less Than Average Length Passby Adjust - Land Use Category Stops or More 1 Mile Stops or More 1 Mile Length Factors Trips ment - Factor (Average Trip Length in Miles) (Percent of Total Trips) (Miles) (Percent) OTHER SERVICES Manual Car Wash 8.00 4.28 0.40 54.1% 34.7% 8.6% 5.85 0.85 2.6% 0.83 Gas Station 5.09 3.28 0.46 20.1% 54.1% 17.9% 2.88 0.42 7.9% 039 Hotel/Motel 9.88 4.85 032 873% 123% 0.0% 9.25 1.34 0.0% 134 Set6Storage 8.00 4.28 0.40 54.1% 34.7% 8.6% 5.85 0.85 2.6% 0.83 Other Services 8.00 4.28 0.40 54.1% 34.7% 8.6% 5.85 0.85 2.6% 0.83 RECREATIONAL Park 5.74 5.78 0.72 58.1% 33.0% 0.0% 5.24 0.76 8.9% 0.69 Marina 832 5.01 0.62 49.4% 44.0% 4.2% 634 0.92 2.4% 0.90 Tourist Attraction 9.40 3.86 0.63 53.7% 463% 0.0% 6.83 0.99 0.0% 0.99 Movie Theater 7.76 534 034 553% 19.2% 20.2% 5.43 0.79 53% 0.75 Other Outdoor Recreation 9.41 735 032 703% 16.6% 11.8% 7.91 1.15 13%. 1.14 Other Indoor Recreation 5.28 5.22 030 1 46.8% 433% 6.7%1 4.76 0.69 1 3.2% 0.67 Based on dividing the average trip length for each land use by 6.89 miles, the average length of all trips in the system. Sources: San Diego Association of Governments, Analysis of Trip Diversion", Revised November, 1990; Recht Hausrath & Associates. TABLE A-1 INTERRUPTED TRIPS & TRIP LENGTH ADJUSTMENT FACTORS Diverted Diverted Diverted Diverted All Trips: Trip Total Land Use Category Primary Stops 1 Mile More Less Than Primary 1 Mile Less Than Average Length Passby Adjust - or 1 Mile Stops or More 1 Mile Le Length Factor t Trips ment (Average Trip Length in Miles) (Percent of Total Trips)) (Miler) ( Percent Factor INSTITUTIONAL Hospital 930 5.92 0.76 70.0% 293% 0.7% 8.25 1.20 0.0% 1.20 Church 630 4.13 0.42 63.7% 313% 2.5% 532 0.77 2.5% 0.75 Military 1238 6-57 0.33 78.6% 19.9% 1.5% 11.04 1.60 0.0% 1.60 Nursery School/Day Care Center 4.01 435 0.41 16.6% 74.7% 6S% 3.94 0.57 2.2% 0.56 chool 4.67 2.84 0.44 53.2% 33.6% 4.6% 3.46 OSO 8.6% 0.46 LffighS�chool 535 4.02 OS6 74.1% 23.1% 0.0% 4.890.71 2.8% 0.69 e 933 5.08 0.70 83.6% 16.4% 0.0% 8.63 1.25 0.0% 1.25 ersity 935 4.65 0.46 85.9% 14.1% 0.0%1 8.69 1.26 1 0.0%1 1.26 Based on dividing the average trip length for each land use by 6.89 miles, the average length of all trips in the system. Sources: San Diego Association of Governments, Analysis of Trip Diversion", Revised November, 1990; Recht Hausrath & Associates. APPENDIX B INSTITUTE OF TRANSPORTATION ENGINEERS LAND USE CATEGORIES The trip generation rates used for the transportation facilities fee shown in Tables VII -1 and VII -3 in Chapter VII are from studies conducted throughout the country by various public agencies and consulting firms. These studies are summarized by the Institute of Transportation Engineers (ITE) in their manual Trip Generation The manual includes brief definitions for each land use category. Table B-1 identifies the name and ITE reference number for these land use categories. Trips generation rates for each land use were taken for the evening peak hour of the adjacent street unless unavailable, in which case the rate was for the on-site evening peak hour. Public Facilities Fee Program - DRAFT REPORT Page B -I .: •t Appendix B Institute of Timesportation Enzi Leers Land Use Catezories TABLE B-1 INSIITITIE OF TRANSPORTATION ENGINEERS LAND USE CATEGORIES ITE Ref- rrE Ref - Land Use Category erence No. Land Use Category erence No. RESIDENTIAL RESTAURANTS Single -Family Detached 210 Fast Food (with drive-through) 834 Multi -Family (<20 DU/acre) 230 High Turnover (sit down) 832 Multi -Family (> -20 DU/acre) 222 Quality (sit down) 831 Mobile Home 240 FINANCIAL Retirement Community 250 Bank (walk-in only) 911 Congregate Care Facility 252 Bank (with drive through) 912 OFFICE Savings & Loan 913 Standard Office (<100,000 sq. ft.) 710 OTHER SERVICES Large Office (> =100,000 sq. ft.) 710 Manual Car Wash 847 Medical Office 720 Gas Station 844 Government Office 733 Hotel/Motel 310 INDUSTRIAL Self -Storage 151 Business Park (w/ commercial) 770 Other Services 710 Light Industry (w/out commercial) 110 RECREATIONAL Manufacturing 140 Park 412 Warehousing I% Marina 420 Research & Development 760 Tourist Attraction 480 SHOPPING CENTERS Movie Theater 443 Super Regional (> =700,000 sq. ft.) 820 Other Outdoor Recreation 430 Regional (400,000-699,999 sq. ft.) 820 Other Indoor Recreation 492 Community (100,000-399,999 sq. 820 INSTITUTIONAL Neighborhood (<100,000 sq. ft.) 820 Hospital 610 COMMERCIAL SHOPS Church 560 Convenience Market 851 Military 501 Supermarket 850 Nursery School/Day Care Center 565 Furniture Store 890 Elementary School 520 Other Retail 810 High School 530 L_ Junior College 540 College/University 550 Source: Institute of Transportation Engineers, Trip Generation, 5th edition, 1991. Public Facilities Fee Pmgrmn - DRAFT REPORT Page B-2