Resolution 2012-53RESOLUTION NO. 2012-53
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY DECREASING THE STORM, WATER,
SEWER AND TRAFFIC IMPACT FEES
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, 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, on November 1, 2004, the City Council adopted Resolution 2004 -95, which
sets forth the City's policy in relation to annual adjustments of the Traffic Impact Fee; and
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WHEREAS, pursuant to Resolution 2004 -95, the City allows for annual adjustment of
the Traffic Impact Fee utilizing an independent engineering firm conducting project review and
unit cost analysis based on actual and/or foreseeable costs being experienced by the building
industry; and
WHEREAS, the City performed a detailed review of the cost assumptions associated
with the Storm, Water, Sewer and Traffic master plans 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 Storm, Water, Sewer and Traffic Impact Fees; and
WHEREAS, this cost adjustments are based on new cost data only, and do not affect the
statutory findings made by the City Council at adoption of the Storm, Water, Sewer and Traffic
impact fees in 2004. No changes are proposed that would change the original analysis of the
reasonable relationship between new development, the Storm, Water, Sewer and Traffic utility
and traffic impact fees, and facilities to be funded; and
WHEREAS, the resulting Storm, Water, Sewer and Traffic financial models, based on
the original 2004 Storm, Water, Sewer and Traffic Studies horizon, only produces a sustainable
and balanced result for the Sewer model with annual increases of 4% for 5 years, 2014 through
2018 and the Traffic model with annual increases of 3% for 6 years, 2014 through 2019 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 the Storm and Traffic impact funds do not slide into a
deficit position in future years; and
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WHEREAS, the City Council by resolution may adjust the amount of the Storm, Water,
Sewer and Traffic impact fees from time to time based on new data and now wishes to adjust the
Storm, Water, Sewer and Traffic impact fees in accordance with the results of the 2011 cost
adjustments; and
WHEREAS, this Resolution is not a project requiring environmental review consistent
with Section 15738(b)(4) of the State Guidelines implementing the California Environmental
Quality Act (Pub. Resources Code Section 21000, et seq., "CEQA "), inasmuch as it is a
government fiscal activity, as the fee adjustments do not involve any commitment to any specific
project which may result in a potentially significant physical impact on the environment.
NOW, THEREFORE, BE IT RESOLVED THAT:
A. The Storm, Water, Sewer and Traffic Impact Fees are hereby decreased as described
in the attached Exhibit A.
B. The Sewer Impact Fees shall include a 4% fee increase for 5 years, effective July 1,
2013 (FYI 4) in order to ensure financing over time to pay for the projects included in
the plan.
C. The Traffic Impact Fees shall include a 3% fee increase for 6 years, effective July 1,
2013 (FY14) in order to ensure financing over time to pay for the projects included in
the plan.
D. The Storm, Water, Sewer and Traffic Impact Fees shall be reviewed periodically to
appropriately account for cost increases, in addition to 4% increases for the Sewer
Impact Fee and the 3% increases for the Traffic Impact Fee, to provide the City with
the opportunity to make fee adjustments within the Storm, Water, Sewer and Traffic
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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.
E. The decrease to the Storm, Water, Sewer and Traffic Impact Fees approved by this
Resolution shall be effective sixty (60) days after the date of approval of this
Resolution.
F. This Resolution is not a project requiring environmental review under CEQA.
Consistent with CEQA Guidelines Section 15378(b)(4), the fee adjustments
authorized under this Resolution constitute a governmental fiscal activity which will
not result in a potentially significant physical impact on the environment.
PASSED AND ADOPTED this 10th day of December, 2012 by the following roll call vote:
AYES: COUNCILMEMBERS: ARELLANO, AULMAN, BRACCO,
LEROE- MUNOZ, TUCKER, WOODWARD and GAGE
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
(Je4g -I, qq""'
Don Gage, Mayor
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EXHIBIT A
The following Storm, Water, Sewer and Traffic Impact Fee schedule is established for
the City of Gilroy:
Storm Impact Fee
Land Use Fee Category
Units
Fee
Residential — Low Density
$ /acre
$ 564
Residential — High Density
$ /acre
$ 886
Commercial
$ /acre
$ 1,528
Commercial — Assembly Hall
$ /acre
$ 564
Industrial
$ /acre
$ 1,128
Water Impact Fee
Land Use Fee Category
Units
Fee
Residential — Low Density
$ /unit
$ 4,294
Residential — High Density
$ /unit
$ 1,737
Commercial
$/kgpd
$ 6,731
Industrial
$/kgpd
$ 6,731
*kgpd represents 1, 000 gallons per day
Sewer Impact Fee
Land Use Fee Category
Units
Fee
Residential — Low Density
$ /unit
$ 10,275
Residential — High Density
$ /unit
$ 5,560
Commercial
$ /cgpd
$ 3,252
Industrial
$ /cgpd
$ 3,252
*cgpd represent 100 gallons per day
Adjustment Relies on Anticipated Fee Escalation for reasonable fund balance at the end of 40 years:
FY 2014 - 2018 (S years) -fee increases at 4% per year to ensure sustainable funding necessary to pay for the projects included in the plan
Traffic Impact Fee
Land Use Fee Category
Units
Fee
Residential — Low Density
$ /unit
$ 9,683
Residential — High Density
$ /unit
$ 7,849
Commercial —Low Traffic /Assembly Hall
$ /ksf
$ 10,713
Commercial — High Traffic
$/ksf
$ 21,640
Industrial — General
$/ksf
$ 4,246
Industrial — Warehouse
$/ksf
$ 3,077
*ksf represents 1, 000 square feet
Adjustment Relies on Anticipated Fee Escalation for reasonable fund balance at the end of 40 years:
FY 2014 - 2019 (6 years) -fee increases at 3% per year to ensure sustainable funding necessary to pay for the projects included in the plan
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I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2012 -53 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 10th day of December, 2012, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
tjhe f Gilroy this i° y of December, 2012.
Fre MC
City Clerk ofl�hVCity of Gilroy
(Seal)