Resolution 2007-06
RESOLUTION NO. 2007-06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY INCREASING THE WATER DEVELOPMENT
IMPACT FEES
WHEREAS, development impact fees are regularly reviewed and revised every five (5)
years based on analysis ofthe cost of the City's provision ofthe services funded thereby;
WHEREAS, by Resolution 2004-96, adopted November 1, 2004, the City Council of the
City of Gilroy allowed for annual adjustment to the Sewer Development Impact Fees, Water
Development Impact Fees and Storm Drain Impact Fees, effective January 1 of each calendar
year, based upon any increase in the annual Construction Cost Index ("CCI"); and
WHEREAS, by said Resolution 2004-96 the City Council also determined that the City
could further adjust the amount of the Sewer Development Impact Fees, Water Development
Impact Fees and Storm Drain Impact Fees from time to time based on new data; and
WHEREAS, since the passage of Resolution 2004-96, the City passed Resolution 2006-
50, finding that the cost of delivering water had increased significantly since the adoption of
Resolution 2004-96; and
WHEREAS, 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 continued to increase the City's cost of providing water significantly beyond the
annual increase in the CCI; and
WHEREAS, the facts describing the increased costs and their relationship to the impact
fees are set forth in the Engineering Division Memorandum dated January 16, 2007 ("Staff
Memo"); and
WHEREAS, said increased costs described in the Staff Memo constitute new data upon
. .
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\JH\71455Q,1
Resolution No. 2007-06
which basis the City intends to increase its Water Development Impact Fee; and
WHEREAS, the location and custodian of the documents or other materials which
constitute the record of proceedings for this resolution have been available to the Public in the
office of the City Clerk for no fewer than ten (10) days prior to the date of this resolution.
NOW, THEREFORE, BE IT RESOLVED THAT The City Council hereby finds and
approves the following:
1. The cost of delivering water has continued to increase significantly since
the adoption of Resolutions 2004-96 and 2006-50 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 ten percent (10%) increase III Water Development Impact Fees 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.
A. The Water Development Impact Fees are hereby increased by approximately ten
percent (10%), which increase is further described in the attached Exhibit A and
incorporated by the reference, to be effective July 1, 2007.
PASSED AND ADOPTED this 23rd day of January, 2007, by the following vote:
AYES:
COUNCILMEMBERS:
ARELLANO, BRACCO, CORREA,
GARTMAN, VALIQUETTE, VELASCO,
and PINHEIRO
NOES:
COUNCILMEMBERS:
NONE
ABSENT:
COUNCILMEMBERS:
NONE
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\JH\71455Q,1
Resolution No. 2007-06
~~
Ibert inheiro, M;;yor
--
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\JH\71455Q,1
Resolution No. 2007-06
Exhibit "A"
City of Gilroy
Water Development Impact Fees
WP A \693039,1
052306-04706012
\JH\714550,1
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Resolution No. 2006-
(\04 04n(\"'7 (\A..,n~nn...
FUND 436: WATER
Residential - Low Density
Residential - High Density
Commercial
Industrial
Exhibit" A"
City of Gilroy
Water Development Impact Fees
Unit of
Measure
$Iunit
$Iunit
$/kgpd *
$/kgpd *
* kgpd represents per 1,000 gallons per day
WPA\693039,1
052306-04706012
\JH\714550,1
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Existing
Rate as of
1-1-07
$ 4,662
$ 1,885
$ 7,308
$ 7,308
Percentage
Increase in
Rate
+10%
+10%
+10%
+10%
New
Rate
7-1-07
$5,128
$2,074
$8,039
$8,039
Resolution No. 2006-_
I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2007-06 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
22nd day of January, 2007, 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 8th day of February, 2007.
~~uJL&d~ '
CIty lerk of the CIty of GIlroy
(Seal)