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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 IVPA\696330,3 072406-04706091 -1- 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 IVPA\696330,3 072406-04706091 -2- 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. IVPAI696330,3 072406-04706091 -3- 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 IVP A \696330.3 072406-04706091 ARELLANO, BRACCO, CORREA, GARTMAN, VALIQUETTE, VELASCO, and PINHEIRO NONE NONE <==-....~ -4- 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 IVPA \693039.1 052306-04706012 -5- 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 IVP A \693039.1 052306-04706012 Unit of Measure $/unit $/unit $/ksf * $/ksf * $/ksf * $/ksf * -6- 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)