Resolution 2006-50
RESOLUTION NO. 2006-50
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY INCREASING THE WATER DEVELOPMENT
IMPACT FEES AND THE TRAFFIC IMPACT FEES
WHEREAS, development impact fees are regularly reviewed and revised every five (5)
years based on analysis of the cost of the City's provision of the services funded thereby;
WHEREAS, by Resolution 2004-96, adopted November I, 2004, the City Council of the
City of Gilroy allowed for annual adjustment to the Water Development Impact Fees, effective
January 1 of each calendar year, based upon any increase in the annual Construction Cost Index
("CCI"); and
WHEREAS, by Resolution 2004-95, adopted November 1, 2004, the City Council
allowed for an annual adjustment of the Traffic Impact Fees, which adjustment would reflect
increased costs determined by an annual review of the overall budgets and unit costs for each
project scheduled for funding from the Traffic Impact Fund; and
WHEREAS, by said Resolutions 2004-96 and 2004-95, the City Council also determined
that the City could further adjust the amount of Water Development Impact Fees and Traffic
Impact Fees based on new data; and
WHEREAS, since the passage of these resolutions, the discovery of potential for
perchlorate contamination in the groundwater, the need for an alternative power source to
generate water in the event of an emergency and high pipe costs have increased the cost of
providing water significantly beyond the annual increase in the CCI; and
WHEREAS, a large increase in the costs of raw materials necessary for road
construction, such as oil, petroleum products, asphalt, steel and concrete, has significantly
increased the cost of providing roadway improvements since the last adjustment to the Traffic
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Resolution No. 2006-50
Impact Fees; and
WHEREAS, the facts describing the increased costs and their relationship to the impact
fees are set forth in the Engineering Division Memorandum dated June 6, 2006 ("Staff Memo"),
the additional Staff memorandum entitled "Current Status" and the report entitled "Rising
Construction Costs" published in the Orange County Register and entered into the record by
City Engineer Rick Smelser along with his oral presentation on the matter prior to the duly
noticed Public Hearing at the City Council meeting of June 12, 2006 ("Supplemental
Presentations"); and
WHEREAS, said increased costs described in the Staff Memo and Supplemental
Presentations constitute new data upon which basis the City intends to increase its Traffic and
Water Development Impact Fees; and
WHEREAS, the location and custodian of the documents or other materials which
constitute the record of proceedings upon which this project approval have been available to the
Public in the office of the City Clerk for no fewer than 10 days prior to the date of this
Resolution.
NOW, THEREFORE, BE IT RESOLVED THAT:
SECTION I
A. The City Council hereby finds the following:
I. The cost of delivering water has increased significantly since the adoption
of Resolution 2004-96 because of: (i) the existence of potential perchlorate contamination
in groundwater; (ii) the new public safety requirement that water providers maintain
auxiliary power from an alternative source; and (iii) a large increase in pipe costs; and
2. A twenty-five percent (25%) increase in Water Development Impact Fees
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Resolution No. 2006-50
is required to cover such increased costs; and
3. The increased Water Development Impact Fee will not exceed the amount
needed for the reasonable cost of providing water services and related infrastructure.
B. The Water Development Impact Fees are hereby increased by approximately
twenty-five percent (25%), which increase is further described in the attached
Exhibit A.
SECTION 2
A. The City Council further finds the following:
1. Since the most recent increase in the Traffic Impact Fee, there has been a
significant increase in the cost of raw materials for construction of roadways and related
infrastructure.
2. A thirteen percent (13%) increase in Traffic Impact Fees is required to
cover such increased costs; and
3. The increased Traffic Impact Fee will not exceed the amount needed for
the reasonable cost of providing roadways and related infrastructure.
B. The Traffic Impact Fees are hereby increased by approximately thirteen percent
(13%), which increase is further described in the attached Exhibit B.
SECTION 3
The increases to the Water Development Impact Fees and the Traffic Impact Fees
approved by this Resolution shall become effective sixty (60) days after the date hereof, said date
being September 15, 2006.
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Resolution No. 2006-50
PASSED AND ADOPTED this 17th day of July, 2006, by the following vote:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
A~'T: ,
~(~
Rhonda Pellin, City Clerk
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ARELLANO, BRACCO, CORREA,
GARTMAN, VALIQUETTE, VELASCO,
and PINHEIRO
NONE
NONE
<==-....~
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Resolution No. 2006-50
Exhibit "A"
City of Gilroy
Water Development Impact Fees
FUND 436: WATER Unit of Existing New Rate as
Measure Rate as of of
1-1-06 9-15-06
Residential - Low Density $/unit $ 3,579 $ 4,474
Residential - High Density $/unit $ 1,447 $ 1,809
Commercial $/kg pd * $ 5,610 $ 7,013
Industrial $/kg pd * $ 5,610 $ 7,013
* kgpd represents per 1,000 gallons per day
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Resolution No. 2006-
Exhibit "8"
City of Gilroy
Traffic Development Impact Fees
FUND 433: TRAFFIC
Residential - Low Density
Residential - High Density
Commercial - Low Traffic + Assembly Hall
Commercial - High Traffic
Industrial - General
Industrial - Warehouse
* ksf represents per 1,000 square feet
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052306-04706012
Unit of
Measure
$/unit
$/unit
$/ksf *
$/ksf *
$/ksf *
$/ksf *
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Existing
Rate as of
1-1-06
$9,545
$7,737
$10,560
$21,331
$4,186
$3,034
New Rate
as of
9-15-06
$ 10,786
$ 8,743
$11,933
$ 24,104
$ 4,730
$ 3,428
Resolution No. 2006-
I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2006-50 is an original resolution, or true and correct copy of a city resolution,
duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the
17th day of July, 2006, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 24th day of July, 2006.
\#LUl"a~
City Clerk of the City of Gilroy
(Seal)