Resolution 2011-45
RESOLUTION NO. 2011-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY DECREASING THE PUBLIC FACILITIES
IMP ACT FEE
WHEREAS, the City has committed itself to a sustainable budgeting structure to ensure
the financial viability of the organization for residents reliant on city services and infrastructure.
Each future policy decision of the council is to continue this commitment to sustainable financial
decisions; and
WHEREAS, without impact fees the City would be left without a major financing
mechanism through which the community could afford to build necessary public infrastructure in
a sustainable manner to accommodate new growth; and
WHEREAS, master plans set forth community infrastructure standards and are adopted
as policy documents by the City Council and are consistent with the City's General Plan, the
City's ultimate council adopted development policy document; and
WHEREAS, pursuant to Section 21.163 (b) of the Gilroy Municipal Code, the City
prepared a 2011 Adjustment Report for the public facilities impact fee (PFIF) which included a
detailed review of the cost assumptions associated with the PFIF master plan and a re-costing of
the projects consistent with the current pricing experienced in this area resulting from the
recession's effect on items such as materials, property values and labor rates are consistent with
current industry indicators and the City's own experiences bidding out various projects over the
past two years, providing the basis for a significant decrease in the PFIF; and
WHEREAS, this cost adjustment is based on new cost data only, and does not affect the
statutory findings made by the City Council at adoption of the PFIF in 2004. No changes are
proposed that would change the original analysis of the reasonable relationship between new
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RESOLUTION NO. 2011-45
development, the PFIF, and facilities to be funded and is in accordance with Section 21.163 (b)
of the Gilroy Municipal Code; and
WHEREAS, the resulting financial model, based on the original 2004 PFIF Study
horizon, only produces a sustainable and balanced result with annual debt service increases of
4% for 8 years, 2014 through 2021 and that these anticipated fee increases are separate from fee
increases related to the CCI and must be applied regardless of the CCI to ensure fees keep pace
with anticipated changes in short term interest rates for debt service payments on financed
projects and to ensure the PFIF impact fund does not slide into a deficit position in future years;
and
WHEREAS, certain projects in the PFIF master plan have been identified for completion
by developers as part of individual development agreements negotiated subsequent to the 2004
PFIF Study. The projects should be separated from the PFIF with the recognition that in doing
so the only means by which these projects will be completed is through strict adherence to the
provisions of the individually negotiated development agreements within which the requirement
to complete these projects for the benefit of the residents of Gilroy has been previously
negotiated and identified as valuable consideration in exchange for the private development
approvals provided within the individual development agreements; and
WHEREAS, the City Council by resolution may adjust the amount of the PFIF from time
to time based on new data and now wishes to adjust the PFIF in accordance with the results of
the 2011 Adjustment Report.
NOW, THEREFORE, BE IT RESOLVED THAT:
A. The Public Facilities Impact Fees are hereby decreased as described in the attached
Exhibit A.
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RESOLUTION NO. 2011-45
B. The Public Facilities Impact Fees shall include a 4% debt service fee increase for 8
years, effective July 1,2013 (FY 14) in order to ensure sustainable funding necessary
for debt financing over time to pay for the projects included in the plan.
C. The Public Facilities Impact Fees shall be reviewed periodically to appropriately
account for cost increases, in addition to 4% debt service increases, to provide the
City with the opportunity to make fee adjustments within the public facilities impact
fee structure over time to ensure the fees are reacting to existing economic conditions
and provide for a sustainable financing plan for public infrastructure.
D. The below projects have been identified for completion by developers as part of
individual development agreements negotiated subsequent to the 2004 Study and
shall be separated from the PFIF master plan with the recognition that in doing so the
only means by which they will be completed is through strict adherence to the
provisions of the individually negotiated development agreements within which the
requirement to complete these projects for the benefit of the residents of Gilroy has
been previously negotiated and identified as valuable consideration in exchange for
the private development approvals provided within the individual development
agreements.
Projects to be removed that are covered by Development
Agreements
Project Name Project Cost
Hecker Pass Park Land $828,000
Glen Lorna Ranch Parks Land 1,656,000
Fourth Fire Station - Land 276,000
Fourth Station - Construction 3,600,079
Hecker Pass Park - Construction 793,800
Glen Lorna Ranch Parks Construction 1,587,600
Total $8,741,479
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RESOLUTION NO. 2011-45
E. The decrease to the Public Facilities Impact Fees approved by this Resolution shall be
effective sixty (60) days after the date of approval.
PASSED AND ADOPTED this 21st day of November, 2011 by the following vote:
AYES:
COUNCILMEMBERS: ARELLANO, BRACCO, LEROE-MUNOZ,
TUCKER, WOODWARD and PINHEIRO
NOES:
COUNCILMEMBERS:
NONE
ABSENT:
COUNCILMEMBERS:
NONE
APPROVED:
A
=--------
ert Inheiro, Mayor
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RESOLUTION NO. 2011-45
EXHIBIT A
The following Public Facilities Impact Fee schedule is established for the City of Gilroy:
FUND 440: PUBLIC F ACILITIES IMPACT FEE
Residential- Low Density
Residential- High Density
Commercial
Industrial
(Note: ksf represents per 1,000 square feet)
$/unit
$/unit
$/ksf
$/ksf
$16,200
$13,630
$2,440
$1,080
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RESOLUTION NO. 2011-45
I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2011-45 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 special meeting of said Council
held on the 21 st day of November, 2011, 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 22nd d ~ of November, 2011.
(Seal)