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Home My WebLink AboutSS5 - Development Impact FeesQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report August 27, 2024 Agenda Item No. SS5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Liz Westmoreland, AICP, Senior Planner - 949-644-3234, Iwestmoreland@newportbeachca.gov TITLE: Development Impact Fees ABSTRACT: At a study session on May 11, 2021, the City Council discussed the creation of a development impact fee program and directed staff to prepare a nexus study to evaluate the possible fees. The City of Newport Beach contracted with Willdan Financial Services in late 2021 and has completed a draft nexus study consistent with the Mitigation Fee Act for the City Council's review and consideration. RECOMMENDATION: Staff will present the results of the development fee nexus study for discussion and possible next steps. DISCUSSION: A Development Impact Fee (DIF) is a one-time charge imposed on new developments to fund City facilities and infrastructure that support growth. Currently, the City imposes DIFs for roadway improvements through the Fair Share Traffic Contribution Ordinance. However, there are no DIFs in place for Recreation (e.g., Community Centers), Police, Fire/Life Safety, or Water facilities, except for a nominal fee for new sewer connections. Despite the absence of these DIFs, the City has historically offset the costs of serving new developments through Development Agreements (DAs). However, recent State legislation aimed at streamlining housing approvals, including the City's implementation of its 6th Cycle Housing Element, will limit the City's ability to require DAs. For example, Chapter 15.45 (Development Agreements) of the Newport Beach Municipal Code currently mandates that new residential developments involving a legislative amendment (e.g., General Plan Amendment or Zoning Code Amendment) and more than 50 dwelling units enter into a DA with the City. With the implementation of the 6th Cycle Housing Element, most residential developments will no longer require such amendments, thereby exempting them from DA requirements. On May 11, 2021, the City Council recognized the need to explore a potential DIF program to address the infrastructure demands of new residential developments. The City Council directed staff to prepare a nexus study. SS54 Development Impact Fees August 27, 2024 Page 2 Willdan Financial Services, in collaboration with City staff, has prepared a draft nexus study, which evaluates potential fees for Recreation, Police, Fire/Life Safety, Sewer, and Water facilities. This draft is included as Attachment A for the Council's review and consideration. FISCAL IMPACT: There is no fiscal impact related to this study session item. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — City of Newport Beach Development Impact Fee Nexus Study SS5-2 Attachment A City of Newport Beach Development Impact Fee Nexus Study SS5-3 CITY OF NEWPORT BEACH DEVELOPMENT IMPACT FEE NEXUS STUDY ADMINISTRATIVE DRAFT AUGUST 19, 2024 Oakland Office 66 Franklin Street Suite 300 Oakland, CA 94607 Tel: (510) 832-0899 *"f,WILLDAN FINANCIAL SERVICES Corporate Office 27368 Via Industria Suite 200 Temecula, CA 92590 Tel: (800) 755-6864 Fax: (888) 326-6864 www.willdan.com Other Regional Offices Aurora, CO Orlando, FL Phoenix, AZ Plano, TX Seattle, WA Washington, DC SS5-4 This page intentionally left blank. SS5-5 TABLE OF CONTENTS EXECUTIVE SUMMARY.......................................................................... 1 Background and Study Objectives 1 Facility Standards and Costs 1 Use of Fee Revenues 2 Development Impact Fee Schedule Summary 2 1 . INTRODUCTION........................................................................... 4 Public Facilities Financing in California 4 Study Objectives 4 Fee Program Maintenance 5 Study Methodology 5 Types of Facility Standards 5 New Development Facility Needs and Costs 6 Organization of the Report 7 2. GROWTH FORECASTS................................................................. 8 Land Use Types 8 Impact Fees for Accessory Dwelling Units 8 Existing and Future Development 9 Occupant Densities 10 Land Value Assumptions 11 3. RECREATION FACILITIES............................................................ 13 Service Population 13 Existing Facilities Inventory 13 Preliminary Planned Facilities 15 Cost Allocation 15 Existing Level of Service 15 Future Level of Service 15 Fee Revenue Projection 16 Fee Schedule 16 Mitigation Fee Act Findings 17 Purpose of Fee 17 Use of Fee Revenues 17 Benefit Relationship 17 Burden Relationship 18 Proportionality 18 4. POLICE FACILITIES.................................................................... 19 Service Population 19 Existing Facility Inventory 20 Preliminarily Planned Facilities 20 Cost Allocation 21 Existing Level of Service 21 i �W I LLDAN AL SEH`.l- SS5-6 City of Newport Beach Development Impact Fee Nexus Study Future Level of Service 21 Fee Revenue Projection 22 Fee Schedule 22 Mitigation Fee Act Findings 23 Purpose of Fee 23 Use of Fee Revenues 23 Benefit Relationship 24 Burden Relationship 24 Proportionality 24 5. FIRE/LIFE SAFETY FACILITIES.................................................... 26 Service Population 26 Existing Facility Inventory 27 Planned Facilities 28 Cost Allocation 28 Existing Level of Service 28 Future Level of Service 28 Fee Revenue Projection 29 Fee Schedule 29 Mitigation Fee Act Findings 30 Purpose of Fee 30 Use of Fee Revenues 30 Benefit Relationship 31 Burden Relationship 31 Proportionality 31 6. WATER CAPACITY..................................................................... 33 Water Demand 33 Current Water System Asset Valuation 33 Fee per Gallon per Day 34 Fee Schedule 35 7. SEWER CAPACITY..................................................................... 36 Sewer Demand 36 Current Sewer System Asset Valuation 36 Fee per Gallon per Day 37 Fee Schedule 37 8. AB 602 REQUIREMENTS............................................................ 39 Compliance with AB 602 39 66016.5. (a) (2) - Level of Service 39 66016.5. (a) (4) — Review of Original Fee Assumptions 39 6016.5. (a) (5) — Residential Fees per Square Foot 39 66016.5. (a) (6) — Capital Improvement Plan 39 9. IMPLEMENTATION...................................................................... 41 Impact Fee Program Adoption Process 41 Inflation Adjustment 41 Reporting Requirements 41 u W I LLDAN ,'Jn- - S-ICLS SS5-7 City of Newport Beach Development Impact Fee Nexus Study Programming Revenues and Projects with the CIP 44 APPENDIX......................................................................................... 45 WllW I LLDAN ,y,1 NL AL SEH`.l- SS5-8 Executive Summary This report summarizes an analysis of development impact fees needed to support future development in the City of Newport Beach through calendar year 2045. It is the City's intent that the costs representing future development's share of public facilities and capital improvements be imposed on that development in the form of a development impact fee, also known as a public facilities fee. The public facilities and improvements included in this analysis are divided into the fee categories listed below: Recreation Facilities Water Capacity Police Facilities Sewer Capacity Fire/Life Safety Facilities Background and Study Objectives The primary policy objective of a development impact fee program is to ensure that new development pays the capital costs associated with growth. Although growth also imposes operating costs, there is not a similar system to generate revenue from new development for services. The primary purpose of this report is to calculate and present fees that will enable the City to expand its inventory of public facilities, as new development creates increases in service demands. If adopted, the City would collect public facilities fees under authority granted by the Mitigation Fee Act (the Act), contained in California Government Code Sections 66000 et seq. This report provides the necessary findings required by the Act for adoption of the fees presented in the fee schedules contained herein. If the City adopts impact fees, it should program development impact fee -funded capital projects through its Capital Improvement Program (CIP). Using a CIP would allow the City to identify and direct its fee revenue to public facilities projects that will accommodate future growth. By programming fee revenues to specific capital projects, the City can help ensure a reasonable relationship between new development and the use of fee revenues as required by the Act. Facility Standards and Costs There are several approaches to calculate facilities standards and allocate the costs of planned facilities to accommodate growth in compliance with the Act requirements in this study. The system plan approach is based on a master facility plan in situations where the needed facilities serve both existing and new development. This approach allocates existing and planned facilities across existing and new development to determine new development's fair share of facility needs. This approach is used when it is not possible to differentiate the benefits of new facilities between new and existing development. Often the system plan is based on increasing facility standards, so the City must find non -impact fee revenue sources to fund existing development's fair share of planned facilities. This approach is used for the police and fire/life safety facility fees in this report. The planned facilities approach allocates costs based on the ratio of planned public facilities that are necessitated by the increase in demand associated with new development. This approach is appropriate when specific planned facilities that only benefit new development can be identified, or when the specific share of facilities benefiting new development can be identified. This approach is used for the recreation facilities fees in this report. The buy -in method is typically used when the existing system has sufficient capacity to serve new development, now and into the future. Under the buy -in methodology, new development W I LLDAN FINANCIAL SERVICES SS5-9 City of Newport Beach Development Impact Fee Nexus Study "buys" a proportionate share of existing capacity at the current value of the existing facilities. This approach is typically used for utility fees, where existing facilities are built with excess capacity to serve future development. This approach is used for the water and sewer capacity charges in this report. The existing inventory approach is based on a facility standard derived from the City's existing level of facilities and existing demand for services. This approach results in no facility deficiencies attributable to existing development. While preliminary facilities to accommodate growth are identified in this report, facilities to serve growth will be programmed through the City's annual CIP and budget process and/or completion of a new facility financial plan. This approach is not used in this report, though the existing level of service is identified as appropriate to comply with provisions of AB 602. Use of Fee Revenues Impact fee revenue must be spent on new facilities or expansion of current facilities to serve new development. Facilities can be generally defined as capital acquisition items with a useful life greater than five years. Impact fee revenue can be spent on capital facilities to serve new development, including but not limited to land acquisition, construction of buildings, construction of infrastructure, the acquisition of vehicles or equipment, information technology, software licenses and equipment. Revenue from the capacity charges for water and sewer facilities can be used to reimburse the City for prior infrastructure investments. Once reimbursed, the City is able to spend fee revenue as it desires. In that the City cannot predict with certainty how and when development within the City will occur during the planning horizon assumed in this study, the City may need to update and revise the project lists funded by the fees documented in this study. Any substitute projects should be funded within the same facility category, and the substitute projects must still benefit and have a relationship to new development. The City could identify any changes to the projects funded by the impact fees when it updates the CIP. The impact fees could also be updated if significant changes to the projects funded by the fees are anticipated. Development Impact Fee Schedule Summary Table E.1 summarizes the maximum justified development impact fees that meet the City's identified needs and comply with the requirements of the Act. W I LLDAN FINANCIAL SERVICES SS5-10 City of Newport Beach Development Impact Fee Nexus Study E.1: Maximum Justified Development Impact Fee Schedule Fire/Life Recreation Police Safety Water Sewer Land Use Facilities Facilities Facilities Capacity Capacity Total Residential -per Sq. Ft. $ 4.70 $ 1.01 $ 1.69 $ 0.90 $ 0.56 $ 8.86 Nonresidential - per Sq. Ft. Commercial $ - $ 0.74 $ 1.77 $ 0.91 $ 0.70 $ 4.12 Office - 1.14 2.72 0.62 0.51 4.99 Industrial - 0.40 0.96 0.77 0.49 2.62 Sources: Tables 3.6, 4.7, 5.7, 6.4, and 7.4. 3 wllW I LLDAN ,y,, NL AL SEH`.l- SS5-11 1. Introduction This report presents an analysis of the need for public facilities to accommodate new development in the City of Newport Beach. This chapter provides background for the study and explains the study approach under the following sections: ■ Public Facilities Financing in California; ■ Study Objectives; ■ Fee Program Maintenance; • Study Methodology; and • Organization of the Report. Public Facilities Financing in California The changing fiscal landscape in California during the past 45 years has steadily undercut the financial capacity of local governments to fund infrastructure. Three dominant trends stand out: ■ The passage of a string of tax limitation measures, starting with Proposition 13 in 1978 and continuing through the passage of Proposition 218 in 1996; ■ Declining popular support for bond measures to finance infrastructure for the next generation of residents and businesses; and • Steep reductions in federal and state assistance. Faced with these trends, many cities and counties have had to adopt a policy of "growth pays its own way." This policy shifts the burden of funding infrastructure expansion from existing ratepayers and taxpayers onto new development. This funding shift has been accomplished primarily through the imposition of assessments, special taxes, and development impact fees also known as public facilities fees. Assessments and special taxes require the approval of property owners and are appropriate when the funded facilities are directly related to the developing property. Development impact fees, on the other hand, are an appropriate funding source for facilities that benefit all development jurisdiction -wide. Development impact fees need only a majority vote of the legislative body for adoption. Study Objectives The primary policy objective of a public facilities fee program is to ensure that new development pays the capital costs associated with growth. The primary purpose of this report is to establish development impact fees for Newport Beach based on the most current available facility plans and growth projections. The maximum justified fees will enable the City to expand its inventory of public facilities as new development leads to increases in service demands. If adopted the City would collect public facilities fees under authority granted by the Mitigation Fee Act (the Act), contained in California Government Code Sections 66000 et seq. This report provides the necessary findings required by the Act for adoption of the fees presented in the fee schedules presented in this report. Newport Beach is forecast to see moderate growth through this study's planning horizon of 2045. This growth will create an increase in demand for public services and the facilities required to deliver them. Given the revenue challenges described above, Newport Beach has decided to investigate use of a development impact fee program to ensure that new development funds its share of facility costs associated with growth. This report makes use of the most current available WIIW I LLDAN ,NANL AL SLHVICLS SS5-12 City of Newport Beach Development Impact Fee Nexus Study growth forecasts and facility plans to calculate impact fees to fund facility needs resulting from demand from new development. Fee Program Maintenance Once a fee program has been adopted it must be properly maintained to ensure that the revenue collected adequately funds the facilities needed by new development. To avoid collecting inadequate revenue, the inventories of existing facilities and costs for planned facilities must be updated periodically for inflation, and the fees recalculated to reflect the higher costs. The use of established indices such as the California Construction Cost Index, are necessary to accurately adjust the impact fees. See Chapter 9 for a discussion of best practices for inflation adjustments. While fee updates using inflation indices are appropriate for annual or periodic updates to ensure that fee revenues keep up with increases in the costs of public facilities, it is recommended to conduct more extensive updates of the fee documentation and calculation (such as this study) when significant new data on growth forecasts and/or facility plans become available. For further detail on fee program implementation, see Chapter 9. Study Methodology Development impact fees are calculated to fund the cost of facilities required to accommodate growth. The six steps followed in this development impact fee study include: 1. Estimate existing development and future growth: Identify a base year for existing development and a growth forecast that reflects increased demand for public facilities; 2. Identify facility standards: Determine the facility standards used to plan for new and expanded facilities; 3. Determine facilities required to serve new development: Estimate the total amount of planned facilities, and identify the share required to accommodate new development; 4. Determine the cost of facilities required to serve new development: Estimate the total amount and the share of the cost of planned facilities required to accommodate new development; 5. Calculate fee schedule: Allocate facilities costs per unit of new development to calculate the development impact fee schedule; and 6. Identify alternative funding requirements: Determine if any non -fee funding is required to complete projects. The key public policy issue in development impact fee studies is the identification of facility standards (step #2, above). Facility standards document a reasonable relationship between new development and the need for new facilities. Standards ensure that new development does not fund deficiencies associated with existing development. Types of Facility Standards There are three separate components of facility standards: Demand standards determine the amount of facilities required to accommodate growth, for example, park acres per thousand residents, square feet of library space per capita, or gallons of water per day. Demand standards may also reflect a level of service such as the vehicle volume -to -capacity (V/C) ratio used in traffic planning. ■ Design standards determine how a facility should be designed to meet expected demand, for example, park improvement requirements and technology infrastructure 5 1 1 LLDAN IFINANCIAL SERVICES SS5-13 City of Newport Beach Development Impact Fee Nexus Study for City office space. Design standards are typically not explicitly evaluated as part of an impact fee analysis but can have a significant impact on the cost of facilities. Our approach incorporates the cost of planned facilities built to satisfy the City's facility design standards. Cost standards are an alternate method for determining the amount of facilities required to accommodate growth based on facility costs per unit of demand. Cost standards are useful when demand standards were not explicitly developed for the facility planning process. Cost standards also enable different types of facilities to be analyzed based on a single measure (cost or value) and are useful when different facilities are funded by a single fee program. Examples include facility costs per capita, cost per vehicle trip, or cost per gallon of water per day. New Development Facility Needs and Costs A number of approaches are used to identify facility needs and costs to serve new development. This is often a two-step process: (1) identify total facility needs, and (2) allocate to new development its fair share of those needs. There are several methods for determining new development's fair share of planned facilities costs: the system plan method, the planned facilities method, the buy -in method and the existing inventory method. The formula used by each approach and the advantages and disadvantages of each method is summarized below: System Plan Method This method calculates the fee based on the value of existing facilities plus the cost of planned facilities, divided by demand from existing plus new development: Value of Existing Facilities + Cost of Planned Facilities Existing + New Development Demand = $/unit of demand This method is useful when planned facilities need to be analyzed as part of a system that benefits both existing and new development. It is difficult, for example, to allocate a new fire station solely to new development when that station will operate as part of an integrated system of fire stations that together achieve the desired level of service. The system plan method ensures that new development does not pay for existing deficiencies. Often facility standards based on policies such as those found in General Plans are higher than the existing facility standards. This method enables the calculation of the existing deficiency required to bring existing development up to the policy -based standard. The local agency must secure non -fee funding for that portion of planned facilities required to correct the deficiency to ensure that new development receives the level of service funded by the impact fee. This approach is used for the police and fire/life safety facility fees in this report. Planned Facilities Method The planned facilities method allocates costs based on the ratio of planned facility costs to demand from new development as follows: Cost of Planned Facilities New Development Demand = cost per unit of demand This method is appropriate when planned facilities will entirely serve new development, or when a fair share allocation of planned facilities to new development can be estimated. An example of the former is a wastewater trunk line extension to a previously undeveloped area. An example of the latter is when the identified planned facilities represent a lower level of service that currently exists, so new development can fully fund the identified planned facilities. This approach is used to calculate the recreation facility fees in this report. WIIW I LLDAN ,NANL AL SLRVICLS SS5-14 City of Newport Beach Development Impact Fee Nexus Study Buy -in Method The buy -in method is based on the value of the existing system's capacity. This method is typically used when the existing system has sufficient capacity to serve new development now and into the future. Under the buy -in methodology, new development "buys" a proportionate share of existing capacity at the current value of the existing facilities. The buy -in fee is determined by taking the current value of assets (replacement cost new, less depreciation) divided by the current capacity provided by the system. Responsibility for new capital improvements is then shared equally by all customers. A simplified version of the calculation equation is: Present Value of Existing Facilities Existing System Capacity = cost per unit of demand This approach is typically used for utility fees, where existing facilities are built with excess capacity to serve future development. This approach is used for the water and sewer capacity fees in this report. Existing in ventoiy Method The existing inventory method allocates costs based on the ratio of existing facilities to demand from existing development as follows: Current Value of Existing Facilities Existing Development Demand = cost per unit of demand Under this method new development will fund the expansion of facilities at the same standard currently serving existing development. The existing inventory method results in no facility deficiencies attributable to existing development. This method is often used when a long-range plan for new facilities is not available. Future facilities to serve growth are identified through an annual CIP and budget process, possibly after completion of a new facility financing plan. This approach is not used in this report, though the existing level of service is identified as appropriate to comply with provisions of AB 602. Organization of the Report The determination of a public facilities fee begins with the selection of a planning horizon and development of growth projections for population and employment. These projections are used throughout the analysis of different facility categories and are summarized in Chapter 2. Chapters 3 through 7 identify facility standards and planned facilities, allocate the cost of planned facilities between new development and other development, and identify the appropriate development impact fee for each of the following facility categories: Recreation Facilities ■ Water Capacity Police Facilities ■ Sewer Capacity Fire/Life Safety Facilities Chapter 8 describes how this nexus study complies with the requirements of Assembly Bill (AB) 602. Chapter 9 details the procedures that the City must follow when implementing a development impact fee program. Impact fee program adoption procedures are found in California Government Code Sections 66016 through 66018. VVIWFINAI LLDAN NCIAL SERVICES SS5-15 2. Growth Forecasts Growth projections are used as indicators of demand to determine facility needs and allocate those needs between existing and new development. This chapter explains the source for the growth projections used in this study based on a 2024 base year and a planning horizon of 2045. Estimates of existing development and projections of future growth are critical assumptions used throughout this report. These estimates are used as follows: The estimate of existing development in 2024 is used as an indicator of existing facility demand and to determine existing facility standards. The estimate of total development at the 2045 planning horizon is used as an indicator of future demand to determine total facilities needed to accommodate growth and remedy existing facility deficiencies, if any. Estimates of growth from 2024 through 2045 are used to (1) allocate facility costs between new development and existing development, and (2) estimate total fee revenues. The demand for public facilities is based on the service population, dwelling units or nonresidential development creating the need for the facilities. Land Use Types To ensure a reasonable relationship between each fee and the type of development paying the fee, growth projections distinguish between different land use types. The land use types for which impact fees have been calculated for are defined below. ■ Residential Dwelling Units: All residential dwelling units, including detached and attached one -unit dwellings and all multifamily dwellings including apartments, duplexes and condominiums. ■ Commercial: All commercial, retail, educational, and service development. ■ Office: All general, professional, and medical office development. ■ Industrial: All manufacturing, warehouse, distribution, and other industrial development Some developments may include more than one land use type, such as a mixed -use development with both residential and commercial uses. In those cases, the facilities fee would be calculated separately for each land use type. The City has the discretion to determine which land use type best reflects a development project's characteristics for purposes of imposing an impact fee and may adjust fees for special or unique uses to reflect the impact characteristics of the use. If a project results in the intensification of use, at its discretion, the City can charge the project the difference in fees between the existing low intensity use and the future high intensity use. Impact Fees for Accessory Dwelling Units The California State Legislature recently amended requirements on local agencies for the imposition of development impact fees on accessory dwelling units (ADU) with AB 68 in 2021. The amendment to California Government Code §65852.2(0(2) stipulates that local agencies may not impose any impact fees on ADU less than 750 square feet. ADU greater than or equal to 750 square feet can be charged impact fees in proportion to the size of the primary dwelling unit. WIIW I LLDAN '.'JP -AL SL ICLS SS5-16 City of Newport Beach Development Impact Fee Nexus Study Calculating Impact Fees for Accessory Dwelling Units For ADUs greater than or equal to 750 square feet, impact fees can be charged as a percentage of the single family impact fee. The formula is: ADU Square Feet x Single Family Impact Fee = ADU Impact Fee Primary Residence Square Feet In the case of an 800 square foot ADU and a 1,600 square foot primary residence, the impact fees would be 50 percent (800 square feet / 1,600 square feet = 50%) of the single family dwelling unit fee. Existing and Future Development Table 2.1 shows the estimated number of residents, dwelling units, employees, and building square feet in Newport Beach, both in 2024 and in 2045. The base year estimates of household residents and dwelling units come from the California Department of Finance (DOF). The population projection for 2045 was calculated based on the increase in dwelling units identified in the City's recent Housing Element (excluding development projects in the pipeline) multiplied by estimates of 2.09 residents per single family unit and 1.56 residents per multifamily unit calculated from the latest data from the American Community Survey for Newport Beach. The projection assumes that 90% of future dwelling units will be multifamily units, based on direction from City planning staff. Base year employees were estimated based on the latest data from the US Census' OnTheMap application and exclude 886 local government (public administration) employees. Local government employees are excluded it is assumed that local government employees are needed to serve development, as opposed to being the development that must be served. The increase of 1,500 jobs in the City is based on the Southern California Association of Government's (SCAG) SoCal Connect Growth Forecast. The projected proportion of workers by land use is consistent with current estimates. The estimates of nonresidential building square feet were estimated by dividing employee counts by the occupancy density factors presented in the following table. W I LLDAN FINANCIAL SERVICES SS5-17 City of Newport Beach Development Impact Fee Nexus Study Table 2.1: Existing and New Development 2024 2045 Increase Residents' 82,008 96,107 14,099 Dvvellina Units 2 Single Family 27,433 28,307 874 Multifamily 17,677 25,544 7,867 Total 45,110 49,001 8,741 Emolovment 3 Commercial 20,458 20,880 422 Office 43,646 44,546 900 Industrial 8,672 8,850 178 Total 72,776 74,276 1,500 Eauivalent Buildina Sauare Feet (OOOs) 4 Commercial 9,629 9,828 199 Office 13,408 13,684 276 Industrial 7,488 7,642 154 Total 30,525 31,154 629 ' Current household population from California Department of Finance. Projection for 2045 based on multiplying increase in dwelling units by an assumption of 2.09 residents per single family unit and 1.56 residents per multifamily unit, based on the latest data from the American Community Survey. 2 Current values from California Department of Finance. Increase in total dwelling units based on total potential development capacity of dwelling units of housing need identified in the Housing Dement Table 3-37, excluding projects in the pipeline. Assumes 90% of new units will be multifamily, based on direction from City staff. 3 Current estimates of primary jobs from the US Census' OnTheMap. Increase of 1,500 jobs based on data from SCAG SoCal Connect 2020 Grow th Forecast. Assumes current ratio among land uses will be maintained. 4 Estimated building square feet calculated based on employment estimates and density factors in Table 2.2. Sources: City of Newport Beach 2021-2029 Housing Dement; California Department of Finance, Table E-5, 2024; SCAG SoCal Connect 2020 Growth Forecast Technical Report, September 3, 2020; OnTheMap Application, http://onthemap.ces.census.gov; Table 2.2, Willdan Financial Services. Occupant Densities All fees in this report are calculated based on dwelling units or building square feet. Occupant density assumptions ensure a reasonable relationship between the size of a development project, the increase in service population associated with the project, and the amount of the fee. Occupant densities (residents per dwelling unit or workers per building square foot) are the most appropriate characteristics to use for most impact fees. The fee imposed should be based on the land use type that most closely represents the probable occupant density of the development. 10 WIIW I LLDAN '.'JP- AL S-ICLS SS5-18 City of Newport Beach Development Impact Fee Nexus Study The occupancy factors are shown in Table 2.2. The residential density factors are based on data for Newport Beach from the 2022 U.S. Census' American Community Survey. Note that the ratio of single family to multifamily units is projected to change over time. The average residents per dwelling unit for growth projected to 2045 is 1.61 residents per unit and reflects the increasing ratio of multifamily units. The nonresidential occupancy factors are derived from national data from the Institute of Traffic Engineers Trip Generation Manual, 11th Edition. Table 2.2: Occupant Densitv Assumptions Residential 1.61 Residents per dwelling unit' Nonresidential Commercial 2.12 Employees per 1,000 square feet Office 3.26 Employees per 1,000 square feet Industrial 1.16 Employees per 1,000 square feet Current average density per dwelling unit is 1.89 residents per unit, per ACS data. This w ill change as ratio of single family units to multifamily units decreases. Average residents per dwelling unit for growth projected to 2045 is 1.61 residents per unit. Sources: U.S. Census Bureau, 2022 American Community Survey 1-Year Estimates, Tables B25024 and B25033 (Newport Beach -specific); ITE Trip Generation Manual, 11th Edition (national data); Willdan Financial Services. Land Value Assumptions A key assumption in calculating impact fees is the value of land acquisition. Land acquisition costs vary widely in Newport Beach. To more accurately reflect the current cost of land acquisition, City staff prepared estimates of land acquisition costs for three geographical areas of the City, referred to in Table 2.3 as tiers. City GIS staff identified City owned parcels within each tier for use in this analysis. Figure 1 displays a map of the land value tiers. Table 2.3: Land Value Area Cost Per Acre Tier 1 $ 55,669,642 Tier 2 23,028,575 Tier 3 11,324,133 Source: City of New port Beach. 11 wllW I LLDAN ,y,, NL AL SEH`.l- SS5-19 City of Newport Beach Development Impact Fee Nexus Study Figure 1 �� r A fi/ J 5 * r + . L3 Kd AlIlya J# k # LIE l + t { FFi * 82 J8 * OJ1 4 a LZ ■ j1M # # H3 + K1 _ } 81 B72 H4 Li A14 . * G1- # C ; bm O O i•y�~ �1 a j3 0 Y7i4 # 4 � • •49. Newport Facility Inventory 02 03 F2 •* * F* # fx W2 fy • ComrnunkyCenter 64 •, .# , • Ire StHUOfI 4 .-� #, # F3 F7 tl f Parks F7 +f F5 $ N FG o TIER t + TIER 2 TIER 3 5 w<ILLDAN 12 SS5-20 3. Recreation Facilities The purpose of this fee is to ensure that new development funds its fair share of recreation facilities. A fee schedule is presented based on the planned facilities standard of recreation facilities per capita. Service Population Recreation facilities in Newport Beach primarily serve residents. Therefore, demand for services and associated facilities is based on the City's residential population. Table 3.1 shows the existing and future projected service population for recreation facilities. Table 3.1: Recreation Facilities Service Poaulation Residents Existing (2024) 82,008 New Development (2024-2045) 14,099 Total (2045) 96,107 Source: Table 2.1. Existing Facilities Inventory The City's recreation facilities inventory is comprised of various community centers, senior centers, junior lifeguard facilities and harbor facilities. The replacement cost of the buildings was identified in City facilities planning documents. The assumed land costs were provided by the City for use in this analysis and vary by geographic area of the City. Replacement costs per square foot for existing buildings were identified in the City's Facilities Financial Plan (FFP). The replacement cost of existing recreation facilities that will be replaced by the planned facilities is excluded from the inventory. In total the City owns $438.8 million worth of recreation facilities. The recreation facilities inventory is displayed in Table 3.2. 13 wl'W I LLDAN ,yn NL AL SE HVICLS SS5-21 City of Newport Beach Development Impact Fee Nexus Study Table 3.2: Existing Recreation Facilities Inventory Replacement Facilitv Amount Units Unit Cost Cost Land Oasis Senior Citizens Center 4.92 acres $ 23,028,575 $ 113,252,475 Newport Coast Community Center 3.06 acres 55,669,642 170,512,612 Theater Arts Center 0.10 acres 23,028,575 2,302,858 West Newport Community Center 0.82 acres 23,028,575 18,792,797 Subtotal 4.92 acres $ 304,860,742 Buildings Bonita Creek Park Community Center 2,876 sq. ft. $ 850 $ 2,444,600 Carroll Beek Community Center' 1,500 sq. ft. - - Junior Lifeguard Building 5,400 sq. ft. 850 4,590,000 Oasis Senior Citizens Center 43,232 sq. ft. 850 36,747,200 Cliff Dr Community Center 761 sq. ft. 850 646,850 Mariners Park Youth Center 1,820 sq. ft. 850 1,547,000 Grant Howald Community Youth Center' 5,146 sq. ft. - - Newport Coast Community Center 16,865 sq. ft. 850 14,335,250 West Newport Community Center 11,980 sq. ft. 850 10,183,000 Theater Arts Center' 7,947 sq. ft. - - Subtotal 97,527 sq. ft. $ 70,493,900 Harbor Facilities Marina Park Recreation Facilities, Offices and Class Rooms 6,500 sq. ft. $ 3,846 $ 25,000,000 Lighthouse Restaurant 2,500 sq. ft. 850 2,125,000 Sailing Center 3,000 sq. ft. 850 2,550,000 Harbor Department Offices 1,000 sq. ft. 850 850,000 Marina Park Building 24,390 sq. ft. 850 20,731,500 Marina Park marina — 23 slips 23 slips 86,957 2,000,000 Balboa Yacht Basin — 172 slips 172 slips 40,698 7,000,000 Subtotal $ 60,256,500 Vessels (See Appendix Table A.1) Recreation Vessels $ 2,592,976 Harbor vessels 550,000 Subtotal $ 3,142,976 Total $ 438,754,118 ' No value is show n for these facilities because they w ill be replaced by the planned facilities. Sources: City of New port Beach; Tables 2.3 and A.1, Willdan Financial Services. 14 VVIW I LLDAN '.'JP- AL S-ICLS SS5-22 City of Newport Beach Development Impact Fee Nexus Study Preliminary Planned Facilities The City preliminarily plans to construct several recreation facilities, including a pool complex, two piers and several improvements to existing community centers. The total cost of the planned facilities is $72.8 million. Table 3.3: Planned Facilities Building Square Cost per Feet Sq. Ft. Total Cost Pool Complex' $ 15,000,000 Ocean Pier: Newport 20,000,000 Ocean Pier: Balboa 15,000,000 Newport Theatre Arts Center 7,950 900 7,155,000 Community Youth Center (CYC) - Grant Howald 5,658 850 4,809,300 Carroll Beek Center 1,500 1,000 1,500,000 West Newport Community Center 11,000 850 9,350,000 Total $ 72,814,300 Total estimated cost of this facility is $30 million. $15 million of these costs are assumed to be funded by other sources. Source: City of New port Beach. Cost Allocation Existing Level of Service Table 3.4 expresses the City's current recreation facilities level of service in terms of an existing cost per capita, by dividing the replacement cost of the City's existing facilities by the existing service population. This cost per resident is not used in the fee calculation, rather it is shown here for informational purposes only. Table 3.4: Existing Standard Value of Existing Facilities $ 438,754,118 Existing Service Population 82,008 Facility Standard per Resident $ 5,350 Sources: Tables 3.1 and 3.2; Willdan Financial Services. Future Level of Service Table 3.5 shows new development's cost per capita needed to fully fund the planned facilities. The level of service indicated by the planned facility standard is lower than the existing standard. This level of service drives the fee calculation. This value is calculated by dividing the cost of planned facilities by the increase in population. The resulting cost per capita drives the fee calculation. 15 1 1 LLDAN ,Yn NL AL SE VICLS SS5-23 City of Newport Beach Development Impact Fee Nexus Study Table 3.5: Planned Facilities Standard Cost of Planned Facilities $ 72,814,300 Growth in Service Population 14,099 Facility Standard per Capita $ 5,164 Sources: Tables 3.1 and 3.3; Willdan Financial Services. Fee Revenue Projection The City plans to use recreation facilities fee revenue to construct improvements and acquire capital facilities and equipment to add to the system of recreation facilities to serve new development. The City plans to construct the facilities in Table 3.3. By using the planned facilities cost allocation method, the cost of the planned facilities is equal to the projected impact fee revenue for this facility category. Fee Schedule Table 3.6 shows the maximum justified recreation facilities fee schedule. The cost per capita is converted to a fee per unit of new development based on dwelling unit densities (persons per dwelling unit). The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit. The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting. In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program. 16 Vv'W 1 LLDAN FINANCIAL SERVICES SS5-24 City of Newport Beach Development Impact Fee Nexus Study Table 3.6: Maximum Justified Recreation Facilities Fee Schedule A B C=AxB D=Cx0.02 E=C+D F=E/Average Cost Per Admin Fee per Land Use Capita Density Base Fee' Charge° z Total Feel Sq. Ft. Residential Dwelling Unit $ 5,164 1.61 1 $ 8,314 $ 166 1 $ 8,480 $ 4.70 Fee per average sized dwelling unit. 2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. 2Assumes an average of 1,803 square feet per dwelling unit based on an analysis of data for the State of California from the 2019 American Housing Survey. Sources: Tables 2.2 and 3.5; Willdan Financial Services. Mitigation Fee Act Findings The five statutory findings required for adoption of the recreation facilities fees documented in this chapter are presented below and supported in detail by the analysis above. All statutory references are to the Act. Purpose of Fee • Identify the purpose of the fee (§66001(a)(1) of the Act). The recreation facilities fee is designed to ensure that new development will not burden the existing service population with the cost of recreation facilities required to accommodate growth. The purpose of the fees documented in this chapter is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide recreation facilities to serve new development. Use of Fee Revenues • Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001 (a) (2) of the Act). Recreation facilities fees, if enacted by the City, would be used to fund expanded recreations to serve new development Citywide. Facilities funded by these fees are designated to be located within the City limits. A list of planned recreation projects is included in Table 3.3. Benefit Relationship • Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001 (a) (3) of the Act). The City will restrict fee revenue to the acquisition of land, construction of facilities and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the residents with new development, who represent the demand for recreation facilities. Using the planned facilities cost allocation methodology outlined in Chapter 1, and the cost per capita standard calculated in Table 3.5, the resulting fees ensure that new development will only fund its fair share of improvements at a level of service that is lower than the existing 17 W 1 LLDAN ,'Jn- - S-ICLS SS5-25 City of Newport Beach Development Impact Fee Nexus Study level of service. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential use classification that will pay the fees. Burden Relationship • Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001(a)(4) of the Act). New residential development will generate additional population growth. An increase in residents will increase the demand for recreation facilities. Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For the recreation facilities fee, demand is measured by a single facility standard (cost per capita) that can be applied to residential development to ensure a reasonable relationship to the type of development. The service population standards are calculated based upon the number of residents associated with residential development. The standard used to allocate facilities costs to new development is also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population. In this case the planned facilities cost per capita is lower than the existing standard cost per capita, which indicates that new development is not being asked to fund a higher level of service than currently exists in the City. Proportionality • Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act). The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated residential and nonresidential population growth the project will accommodate. Fees for a specific project are based on the project's size. Larger development projects can result in a higher service population resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new development project and the cost of the facilities attributable to that project. 18 1 1 LLDAN ynN",L SE Vl- SS5-26 4. Police Facilities The purpose of this fee is to ensure that new development funds its fair share of police facilities. A fee schedule is presented based on the system standard of police facilities in the City of Newport Beach to ensure that new development provides adequate funding to meet its needs. Service Population Police facilities serve both residents and businesses. Therefore, demand for services and associated facilities are based on the City's service population including residents and workers. Table 4.1 shows the existing and future projected service population for police facilities. While specific data is not available to estimate the actual ratio of demand per resident to demand by businesses (per worker) for this service, it is reasonable to assume that demand for these services is less for one employee compared to one resident, because nonresidential buildings are typically occupied less intensively than dwelling units. The 0.31-weighting factor for workers is based on a 40-hour workweek divided by the total number of non -work hours in a week (128) and reflects the degree to which nonresidential development yields a lesser demand for police facilities. Table 4.1: Police Facilities Service Population A B AxB=C Weighting Service Persons Factor Population Residents Existing (2024) 82,008 1.00 82,008 New Development 14,099 1.00 14,099 96,107 Total (2045) 96,107 Workers Existing (2024) 72,776 0.31 22,561 New Development 1,500 0.31 465 23,026 Total (2045) 74,276 Combined Residents and Weighted Workers 104,569 Existing (2024) New Development 14,564 119,133 Total (2045) Workers are w eighted at 0.31 of residents based on 40 w ork hours in a w eek relative to 128 non-w ork hours. Sources: Table 2.1, Willdan Financial Services. 19 VVIW 1 LLDAN F I�IANC AL S-1-S SS5-27 City of Newport Beach Development Impact Fee Nexus Study Existing Facility Inventory The City's police facilities inventory is comprised of a police station, police vehicles, animal shelter, equipment and a recently purchased building at 1201 Dove Street. The replacement cost the existing police station is excluded from the inventory, as it will be replaced by the planned facility. In total, the City owns $39.2 million worth of police facilities. Replacement costs per square foot for existing buildings were identified in the City's Facilities Financial Plan (FFP). Table 4.2 displays the City's existing inventory of police facilities. Table 4.2: Existing Police Facilities Inventory Replacement Quantity Units Unit Cost Cost Police Station' Building Land Subtotal Animal Shelter Building Land Subtotal 1201 Dove Street Vehicles LAopendix Table A.2) 60,000 Sq. Ft. $ - $ - 2.95 Acres - - 2,320 Sq. Ft. $ 850 $ 1,972,000 0.19 Acres 11, 324,133 2,151, 585 $ 4,123,585 $ 28,750,000 $ 5,748,000 Equipment (Appendix Table A.2) $ 548,000 Total Cost - Existing Facilities Inventory $ 39,169,585 'No value is shown for this facility because they will be replaced by the planned facilities. Sources: City of New port Beach; Tables 2.3 and A.2, Willdan Financial Services. Preliminarily Planned Facilities Table 4.3 displays the preliminarily planned police facility, which is a new police station estimated to cost $92.4 million. The cost per square foot was identified by the City. Table 4.3: Planned Police Facilities Description Quantity Units Unit Cost Total Cost New Police Station Total Sources: City of New port Beach. 77,000 Square Feet $ 1,200 $ 92,400,000 $ 92,400,000 20 1 1 LLDAN ,'Jn NL AL SLHVICLS SS5-28 City of Newport Beach Development Impact Fee Nexus Study Cost Allocation Existing Level of Service Table 4.4 expresses the City's current police facilities level of service in terms of an existing cost per capita, by dividing the replacement cost of the City's existing facilities by the existing service population. The resulting cost per capita drives the fee calculation. The cost per capita is multiplied by the worker weighting factor to determine the cost per worker. This cost per capita standard does not drive the fee calculation and is included to comply with the requirements of AB 602. Table 4.4: Police Facilities Existing Standard Value of Existing Facilities $ 39,169,585 Existing Service Population 104,569 Cost per Capita $ 374 Facility Standard per Resident $ 374 Facility Standard per Worker' 115 Based on a w eighting factor of 0.31. Sources: Tables 4.1 and 4.2. Future Level of Service Table 4.5 shows new development's projected per capita investment in fire/life safety facilities at the planning horizon. This value is calculated by dividing the cost of existing and planned facilities by the service population at the planning horizon. This cost per capita drives the fee calculation. 21 WIIW I LLDAN �1P NL AL SE -ILLS SS5-29 City of Newport Beach Development Impact Fee Nexus Study Table 4.5: Police Facilities - System Standard Value of Existing Facilities' $ 39,169,585 Value of Planned Facilities 92,400,000 Total System Value (2045) $ 131,569,585 Future Service Population (2045) 119,133 Cost per Capita $ 1,104 Facility Standard per Resident $ 1,104 Facility Standard per Worker2 342 Excludes value of existing police building. 2 Based on a weighting factor of 0.31. Sources: Tables 4.1, 4.2 and 4.3. Fee Revenue Projection The City plans to use police facilities fee revenue to construct improvements and acquire capital facilities and equipment to add to the system of police facilities to serve new development. The City plans to construct the facilities in Table 4.3. Table 4.6 details a projection of fee revenue, based on the service population growth increment identified in Table 4.1. The cost of the planned facilities not funded by fee revenue represents existing development's share of the facilities and can be funded by any revenue source other than impact fees. The facilities identified in Table 4.3 must be constructed by the planning horizon of this study, or new development will have paid too high a fee. Table 4.6: Revenue Projection - System Standard Cost per Capita $ 1,104 Growth in Service Population (2024 - 2045) 14,564 Fee Revenue $ 16,079,000 Net Cost of Planned Facilities $ 92,400,000 Non -Fee Revenue To Be Identified $ (76,321,000) Sources: Tables 4.1, 4.3 and 4.4. Fee Schedule Table 4.7 shows the maximum justified police facilities fee schedule. The City can adopt any fee up to this amount. The cost per capita is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per dwelling unit is converted into a fee per 22 1 1 LLDAN IFINANCIAL SERVICES SS5-30 City of Newport Beach Development Impact Fee Nexus Study square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit. The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting. In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program. Table 4.7: Maximum Justified Police Facilities Fee Schedule A B C=AxB D=Cx0.02 E=C+D F=E/Average Cost Per Admin Fee per Land Use Capita Densitv Base Feel Charae', 2 Total Fee Sa. Ft.' Residential - per Dvie&M $ 1,104 1.61 $ 1,777 $ 36 $ 1,813 $ 1.01 Nonresidential - per 1,000 Sa. Ft. Commercial $ 342 2.12 $ 727 15 $ 742 $ 0.74 Office 342 3.26 1,113 22 1,135 1.14 Industrial 342 1.16 396 8 404 0.40 Fee per dwelling unit or per 1,000 square feet of nonresidential building space. 2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. 3Assumes an average of 1,803 square feet per dwelling unit based on an analysis of data for the State of California from the 2019 American Housing Survey. Sources: Tables 2.2 and 4.4. Mitigation Fee Act Findings The five statutory findings required for adoption of the police facilities fees documented in this chapter are presented below and supported in detail by the analysis above. All statutory references are to the Act. Purpose of Fee • Identify the purpose of the fee (§66001(a)(1) of the Act). The police facilities fee is designed to ensure that new development will not burden the existing service population with the cost of police facilities required to accommodate growth. The purpose of the fees documented in this chapter is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide police facilities to serve new development. Use of Fee Revenues Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital 23 W"F INRI LLDAN NC AL SSH 1- SS5-31 City of Newport Beach Development Impact Fee Nexus Study improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001 (a) (2) of the Act). Police facilities fees, if enacted by the City, would be used to fund expanded police facilities to serve new development Citywide. Facilities funded by these fees are designated to be located within the City limits. A list of planned police facilities projects is included in Table 4.3. Benefit Relationship Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001 (a) (3) of the Act). The City will restrict fee revenue to the acquisition of land, construction of facilities and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the residents and workers associated with new development, who represent demand for police facilities. Using the system plan standard cost allocation methodology outlined in Chapter 1, and the cost per capita standard calculated in Table 4.5, the resulting fees ensure that new development will only fund its fair share of improvements, and impact fee revenue will not be used to correct existing deficiencies. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential and non-residential use classifications that will pay the fees. Burden Relationship Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001 (a) (4) of the Act). New residential and nonresidential development will generate additional population growth. An increase in residents and workers will increase the demand for police facilities. Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For the police facilities fee, demand is measured by a single facility standard (cost per capita at the planning horizon) that can be applied across land use types to ensure a reasonable relationship to the type of development. The service population standards are calculated based upon the number of residents associated with residential development and the number of workers associated with non-residential development. To calculate a single, per capita standard, one worker is weighted less than one resident based on an analysis of the relative use demand between residential and non-residential development. See the Service Population section above for a discussion of the worker weighting factor. The standard used to allocate facilities costs to new development is also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population. Proportionality Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act). The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated residential and nonresidential population growth the project will accommodate. Fees for a specific project are based on the project's size. Larger development projects can result in a higher service population resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new development project and the cost 24 1 1 LLDAN �N"xL SEHVICL5 SS5-32 City of Newport Beach Development Impact Fee Nexus Study of the facilities attributable to that project. See Table 2.2 for the occupancy density assumptions that drive the proportionality of the fees between the land uses included in this study. 25 WIIW I LLDAN YP NL AL SE VICLS SS5-33 5. Fire/Life Safety Facilities The purpose of the fire impact fee is to fund the fire facilities needed to serve new development. A maximum justified fee schedule is presented based on the system plan standard of fire/life safety facilities per capita. Service Population Fire facilities are used to provide services to both residents and businesses. The service population used to determine the demand for fire facilities includes both residents and workers. Table 5.1 shows the current fire facilities service population and the estimated service population at the planning horizon of 2045. To calculate the service population for fire/life safety facilities, residents are weighted at 1.00. The use of a worker demand factor of 0.44 for workers in Newport Beach is based on an analysis of fire department call data, categorized by land use, in the City from 2023. Average annual incidents at residential land uses were divided by the residential population to yield an average annual incidents -per -capita factor. Dividing average annual incidents at nonresidential areas by average annual employment in the City yielded a comparable per -capita factor. The ratio of the worker per capita factor to the resident per capita factor is the worker demand factor used in the analysis. See Appendix Table A.3 for a detailed worker weighting analysis. Table 5.1: Fire Facilities Service Population A B AxB=C Weighting Service Persons Factor Population Residents Existing (2024) 82,008 1.00 82,008 New Development 14,099 1.00 14,099 96,107 Total (2045) 96,107 Workers 1 Existing (2024) 72,776 0.44 32,021 New Development 1,500 0.44 660 32,681 Total (2045) 74,276 Combined Residents and Weiahted Workers 114,029 Existing (2024) New Development 14,759 128,788 Total (2045) ' Workers are w eighted at 0.44 of residents based on an analysis of fire department call data from 1/1/2023 To 12/31/2023. See Appendix Table A.1 for more detail. Sources: Tables 2.1 and A.3; Willdan Financial Services. 26 � W 1 LLDAN ,YNL ,,L SEH`.1- SS5-34 City of Newport Beach Development Impact Fee Nexus Study Existing Facility Inventory Table 5.2 summarizes the City's current inventory of land, apparatus and vehicles. Fire/life safety services are provided from eight stations and two lifeguard facilities located throughout the City. Replacement costs for existing buildings were identified in the City's Facilities Financial Plan (FFP). In total, the City owns $199.8 million worth of fire/life safety facilities. Table 5.2: Existing Fire Facilities Land and Building Inventory Replacement Quantity Units Unit Cost Cost Land Fire Station #1 Fire Station #2 Fire Station #32 Fire Station #4 Fire Station #53 Fire Station #6 Fire Station #7 Fire Station #8 Subtotal Buildinas Fire Station #14 Fire Station #2 Fire Station #34 Fire Station #4 Fire Station #5 Fire Station #6 Fire Station #7 Fire Station #8 Lifeguard HQ (Newport Pier)4 Lifeguard HQ (CDM) Subtotal 0.29 0.41 0.10 0.36 0.33 1.65 1.09 4.23 3,423 11,600 13,000 4,597 6,513 4,436 11,207 7,000 2,500 1,832 66,108 Vehicles and Apparatus (Appendix Table A.4) Total Cost - Existing Facilities Inventory Acres Acres Acres Acres Acres Acres Acres Acres $ 55, 669, 642 55, 669, 642 23, 028, 575 55, 669, 642 23, 028, 575 23, 028, 575 11, 324,133 55, 669, 642 $ 16,144,196 22, 824, 553 5,566,964 8,290,287 7,599,430 18, 684, 819 60, 679, 910 $ 139,790,160 Sq. Ft. $ - $ - Sq. Ft. 900 10,440,000 Sq. Ft. - - Sq. Ft. 900 4,137,000 Sq. Ft. 900 5,862,000 Sq. Ft. 900 3,992,000 Sq. Ft. 900 10,086,000 Sq. Ft. 900 6,300,000 Sq. Ft. - - Sq. Ft. 900 1,649,000 $ 42, 466, 000 $ 17, 513, 550 $ 199, 769, 710 Fire station 1 is co -located w ith the Balboa Library. Land acreage allocated to each use proportionally based on square footage of each use. 2 Fire station #3 is proposed to be moved to better respond to calls for service from existing and new development. Current site is 3.99 acres and w ill be used for other city purposes. 3 Fire station 5 is co -located w ith the Corona del Mar Library. Land acreage allocated to each use proportionally based on square footage of each use. 4 No value is included for Fire Station #1, #3 and Lifeguard HQ, since they w ill be replaced by the planned facilities Sources: City of New port Beach Fire Department; Tables 2.3 and A.4, Willdan Financial Services. 27 VVW I LLDAN ,y,, NL AL SEH`.l- SS5-35 City of Newport Beach Development Impact Fee Nexus Study Planned Facilities Table 5.3 summarizes the planned facilities needed to serve the City through 2045, as identified by the City. The City will replace three existing facilities with facilities that expand the City's capacity to serve new development. The new facilities with be strategically located to ensure that the City can maintain its incident response time. In total the City has identified $46.3 million worth of capacity expanding fire/life safety facilities. Table 5.3: Planned Fire Facilities Description Quantity Units Unit Cost Total Cost Fire Station No. 1 Replacement 3,423 Sq. Ft. $ 1,200 $ 4,107,600 Fire Station No. 3 Replacement 13,000 Sq. Ft. 1,200 15,600,000 Fire Station No. 3 Land Acquisition 1 Acres 23,028,575 23,028,575 Lifeguard HQ Replacement 3,000 Sq. Ft. 1,200 3,600,000 Total $ 46, 336,175 Source: City of Newport Beach. Cost Allocation Existing Level of Service Table 5.4 expresses the City's current fire/life safety facilities level of service in terms of an existing cost per capita, by dividing the replacement cost of the City's existing facilities by the existing service population. The cost per capita is multiplied by the worker weighting factor to determine the cost per worker. This cost per capita standard does not drive the fee calculation and is included to comply with the requirements of AB 602. Table 5.4: Existing Level of Service Value of Existing Facilities $ 199,769,710 Existing Service Population 114,029 Cost per Capita $ 1,751 Facility Standard per Resident $ 1,751 Facility Standard per Worker' 770 Based on a weighting factor of 0.44. Sources: Tables 5.1 and 5.2. Future Level of Service Table 5.5 shows new development's projected per capita investment in fire/life safety facilities at the planning horizon. This value is calculated by dividing the cost of existing and planned facilities by the service population at the planning horizon. This cost per capita drives the fee calculation. 28 1 1 LLDAN IFINANCIAL SERVICES SS5-36 City of Newport Beach Development Impact Fee Nexus Study Table 5.5: System Standard Cost per Capita Value of Existing Facilities $ 199,769,710 Value of Planned Facilities 40,509.275 Total System Value (2045) $ 240,278,985 Future Service Population (2045) 128,788 Cost per Capita $ 1,866 Facility Standard per Resident $ 1,866 Facility Standard per Worker' 821 Based on a weighting factor of 0.44. Sources: Tables 5.1, 5.2 and 5.3. Fee Revenue Projection The City plans to use fire/life safety facilities fee revenue to construct improvements and acquire capital facilities and equipment to add to the system of fire/life safety facilities to serve new development. The City plans to construct the facilities in Table 5.3. Table 5.6 details a projection of fee revenue, based on the service population growth increment identified in Table 5.1. The cost of the planned facilities not funded by fee revenue represents existing development's share of the facilities and can be funded by any revenue source other than impact fees. The facilities identified in Table 5.3 must be constructed by the planning horizon of this study, or new development will have paid too high a fee. Table 5.6: Projected Fee Revenue Cost per Capita $ 1,866 Growth in Service Population (2023- 2045) 14,759 Fee Revenue $ 27,540,000 Net Cost of Planned Facilities $ 40,509,275 Non -Fee Revenue To Be Identified $ (12,969,275) Sources: Tables 5.1, 5.3 and 5.4. Fee Schedule Table 5.7 shows the maximum justified fire/life safety facilities fee schedule. The cost per capita is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per average sized single family, and multifamily dwelling unit is converted into a 29 1 1 LLDAN IFINANCIAL SERVICES SS5-37 City of Newport Beach Development Impact Fee Nexus Study fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of each type of unit. The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting. In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program. Table 5.7: Fire/Life Safety Facilities Fee Schedule A B C=AxB D=Cx0.02 E=C+D F=E/Average Cost Per Admin Fee per Land Use Capita Density Base Feel Charge 1, 2 Total Fee Sq. Ft.3 Residential Dwelling Unit $ Nonresidential - per 1,000 Sq. Ft. Commercial $ Office Industrial 1,866 1.61 $ 3,004 $ 821 2.12 $ 1,744 $ 821 3.26 2,672 821 1.16 950 60 $ 3,064 $ 1.69 34 $ 1,778 $ 1.77 53 2,725 2.72 19 969 0.96 Fee per dwelling unit or per 1,000 square feet of nonresidential building space. 2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. 3Assumes an average of 1,803 square feet per dwelling unit based on an analysis of data for the State of California from the 2019 American Housing Survey. Sources: Tables 2.2 and 5.5. Mitigation Fee Act Findings The five statutory findings required for adoption of the fire/life safety facilities fees documented in this chapter are presented below and supported in detail by the analysis above. All statutory references are to the Act. Purpose of Fee • Identify the purpose of the fee (§66001(a)(1) of the Act). The fire/life safety facilities fee is designed to ensure that new development will not burden the existing service population with the cost of fire/life safety facilities required to accommodate growth. The purpose of the fees documented in this chapter is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide fire/life safety facilities to serve new development. Use of Fee Revenues • Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital 30 W 1 LLDAN ,'Jn- - S-ICLS SS5-38 City of Newport Beach Development Impact Fee Nexus Study improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001 (a) (2) of the Act). Fire/life safety facilities fees, if enacted by the City, would be used to fund expanded fire/life safety facilities needed to serve new development Citywide. Facilities funded by these fees are designated to be located within the City limits. A list of planned fire/life safety projects is included in Table 5.3. Benefit Relationship • Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001 (a) (3) of the Act). The City will restrict fee revenue to the acquisition of land, construction of facilities and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the residents and workers associated with new development, who represent the demand for fire/life safety facilities. Using the system plan cost allocation methodology outlined in Chapter 1, and the cost per capita standard calculated in Table 5.5, the resulting fees ensure that new development will only fund its fair share of improvements at a level of service that is lower than the existing level of service. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential and non-residential use classifications that will pay the fees. Burden Relationship • Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001 (a) (4) of the Act). New residential and nonresidential development will generate additional population growth. An increase in residents and workers will increase the demand for fire/life safety facilities. Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For the fire/life safety facilities fee, demand is measured by a single facility standard (cost per capita) that can be applied to residential development to ensure a reasonable relationship to the type of development. The service population standards are calculated based upon the number of residents associated with residential development and the number of workers associated with non-residential development. To calculate a single, per capita standard, one worker is weighted less than one resident based on an analysis of the relative use demand between residential and non-residential development. See the Service Population section above for a discussion of the worker weighting factor. The standard used to allocate facilities costs to new development is also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population. Proportionality • Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act). The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated residential and nonresidential population growth the project will accommodate. Fees for a specific project are based on the project's size. Larger development projects can result in a higher service population resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the 31 W 1 LLDAN ,'Jn S-ICLS SS5-39 City of Newport Beach Development Impact Fee Nexus Study fees ensure a reasonable relationship between a specific new development project and the cost of the facilities attributable to that project. See Table 2.2 for the occupancy density assumptions that drive the proportionality of the fees between the land uses included in this study. 32 WIIW I LLDAN YP NL AL SE VICLS SS5-40 6. Water Capacity This chapter documents a reasonable relationship between new development and a water capacity charge to fund water facilities that serve new development. It uses a buy -in approach to allocate the cost of excess capacity in the system to new development. While the City generally has sufficient water capacity to accommodate new development, additional site -specific water facilities improvements may be required as a condition of approval for a development project. Water Demand Estimates of new development and its consequent increased water demand provide the basis for calculating the water facilities fee. The need for water facilities improvements is based on the water demand placed on the system by development. A typical measure of demand is the flow generation rate, expressed as the number of gallons per day generated by a specific type of land use. Flow generation rates are a reasonable measure of demand for the City's system of water improvements because they represent the average rate of demand that will be placed on the system per land use designation. Table 6.1 shows the average flow generation factors by land use category identified in the City's water master plan. Table 6.1: Water Demand by Land Use Average Flow Generation per Flow DU or 1,000 Sq. Land Use Type Generation' Density2 Ft. Residential Dwelling Unit Nonresidential - per 1, 000 Sq. Ft. Commercial Office Industrial 240.00 1,757 13.07 134.45 2,000 21.78 91.83 1,000 8.71 114.78 ' Gallons per acre per day. 2 1,000 square feet per acre for nonresidential. Nonresidential densities are calculated using floor -area -ratios of 0.3 for commercial, 0.5 for office and 0.2 for industrial. Sources: City of New port Beach 2019 Water Master Plan, Table 4-8; Willdan Financial Services. Current Water System Asset Valuation In this case, Replacement New Cost Less Depreciation (RCNLD) is the appropriate method to determine the current value of the water systems. RCNLD is a commonly used method, and it is often preferred to alternative methods such as Original Cost Less Depreciation (OCLD), Original Cost (OC), and Replacement Cost (RC) because of its better reflection of the system's value in today dollars. Unless the systems have depreciated significantly due to lack of replacement and repair, RCNLD is more defensible because the replacement cost is inflation -adjusted to recover the cost of replacing that capacity in current dollars. RCNLD also accounts for depreciation and consequently addresses the fact that the system reflects its current condition. 33 1 1 LLDAN IFINANCIAL SERVICES SS5-41 City of Newport Beach Development Impact Fee Nexus Study The City provided original cost records for the fixed assets of the utility systems as of 2023. Original costs were adjusted to replacement cost new using the Construction Cost Index (CCI). Replacement cost new is the estimated expected cost of a similar facility constructed today. The CCI is based on an average of costs among 20 cities and is published by ENR. Accumulated depreciation was calculated based on the replacement cost of each asset, the year it went in service and estimates of the useful life of that asset. Table 6.2: Water Facilities Replacement Replacement Accumulated Cost New Less Asset Cateaory Oriainal Cost Cost New Depreciation Depreciation Equipment Fire Hydrants Pumps Reservoirs Water Lines Water Meters Water Reducers Wells Total $ 54,905 728,025 2,658,908 40, 248,160 96,111, 555 4,041,124 82,094 3,488,219 $ 147,412,990 $ 62,297 1,509,527 11, 883, 927 579, 389, 729 268, 632, 525 8,379,086 170,218 8,006,121 $ 878, 033, 429 $ 28,808 1,509,527 3,471,777 405,090,901 118,198,311 8,379,086 131,635 2,667,697 $ 539,477,742 $ 33,489 8,412,150 174, 298, 828 150,434,214 38,583 5,338,424 $ 338,555,687 Sources: New port Beach Capital Asset Schedule, 2023; ENR Construction Cost Index; Willdan Financial Services. Fee per Gallon per Day Every impact fee consists of a dollar amount, representing the value of facilities, divided by a measure of demand. In this case, buy -in fees are first calculated as the adjusted system value per gallon per day (GPD). Then these amounts are translated into fees per housing unit (fee per unit) and employment space (fee per 1,000 square feet) by multiplying the cost per GPD by the flow generation rate for each land use category. These amounts become the fee schedule. The calculation of the buy -in fee per GPD for water facilities is shown in Table 6.3. The City provided the sewer system's flow capacity, which is 50.8 million gallons per day. City staff confirmed that the water system has sufficient capacity to accommodate new development within the planning horizon. The adjusted system value divided by the total capacity of the system yields the facilities impact fee per gallon per day of $6.66 for water facilities. Table 6.3: Fee per GPD Total System Value $ 338,555,687 System Flow Capacity (Gallons per Day) 50,800,000 Fee per GPD $ 6.66 Sources: Tables 6.1 and 6.2. 34 WIIW I LLDAN '.'JP -AL SL ICLS SS5-42 City of Newport Beach Development Impact Fee Nexus Study Fee Schedule The maximum justified fee for water capacity is shown in Table 6.4. The fee per GPD is converted to a fee per unit of new development based on the flow generation factors shown in Table 6.1 The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting. In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program. Table 6.4: Maximum Justified Water Facilities Fee Schedule A B IC=AxB D=CxO.021 E=C+D Cost Per GIRD GPD F = E/Average Base Admin Fee per Feel Charge', 2 Total Feel Sq. Ft.3 Residential Dwelling Unit $ 6.66 240.00 $ 1,598 $ 31 $ 1,629 $ 0.90 Nonresidential - per 1,000 Sq. Ft. Commercial $ 6.66 134.45 $ 895 $ 17 $ 912 $ 0.91 Office 6.66 91.83 611 12 623 0.62 Industrial 6.66 114.78 764 15 779 0.77 ' Fee per average sized dwelling unit or per 1,000 square feet of nonresidential building space. 2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. 2Assumes an average of 1,803 square feet per dwelling unit based on an analysis of data for the State of California from the 2019 American Housing Survey. Sources: Tables 6.1 and 6.3. 35 1 1 LLDAN tinN",L -EKES SS5-43 7. Sewer Capacity This chapter documents a reasonable relationship between new development and a sewer capacity charge to fund sewer facilities that serve new development. It uses a buy -in approach to allocate the cost of excess capacity in the system to new development. While the City generally has sufficient sewer capacity to accommodate new development, additional site -specific sewer facilities improvements may be required as a condition of approval for a development project. Sewer Demand Estimates of new development and its consequent increased sewer demand provide the basis for calculating the sewer facilities fee. The need for sewer facilities improvements is based on the sewer demand placed on the system by development. A typical measure of demand is the flow generation rate, expressed as the number of gallons per day generated by a specific type of land use. Flow generation rates are a reasonable measure of demand on the City's system of sewer improvements because they represent the average rate of demand that will be placed on the system per land use designation. Table 7.1 shows the average flow generation factors by land use category used in this analysis. Sewer flow generation factors were estimated by applying a "water sewer flow factor" which represents the percentage of water flow generation that is ultimately returned to the sewer system. The average water flow factors were identified in Table 6.1. Table 7.1: Sewer Demand by Land Use Water Average Flow Water Flow Sewer Generation Generation Flow per DU or Land Use TVDe Factor' Factor 1.000 Sa. Ft. Residential Dwelling Unit 240 0.66 158 Nonresidential -per 1,000 Sq. Ft. Commercial 134 0.81 109 Office 92 0.87 80 Industrial 115 0.67 77 Gallons per acre per day of w ater flow. 2 Assumed percentage of water flow generation that is ultimately returned to the sewer system. Sources: City of New port Beach 2019 Water Master Plan, Table 4-8; Willdan Financial Services. Current Sewer System Asset Valuation In this case, Replacement New Cost Less Depreciation (RCNLD) is the appropriate method to determine the current value of the sewer systems. RCNLD is a commonly used method, and it is often preferred to alternative methods such as Original Cost Less Depreciation (OCLD), Original Cost (OC), and Replacement Cost (RC) because of its better reflection of the system's value in today dollars. Unless the systems have depreciated significantly due to lack of replacement and repair, RCNLD is more defensible because the replacement cost is inflation -adjusted to recover the cost of replacing that capacity in current dollars. RCNLD also accounts for depreciation and consequently addresses the fact that the system reflects its current condition. 36 1 1 LLDAN IFINANCIAL SERVICES SS5-44 City of Newport Beach Development Impact Fee Nexus Study The City provided original cost records for the fixed assets of the utility systems as of 2023. Original costs were adjusted to replacement cost new using the Construction Cost Index (CCI). Replacement cost new is the estimated expected cost of a similar facility constructed today. The CCI is based on an average of costs among 20 cities and is published by ENR. Accumulated depreciation was calculated based on the replacement cost of each asset, the year it went in service and estimates of the useful life of that asset. Table 7.2 summarizes the City's current sewer system asset valuation. Table 7.2: Current Sewer System Asset Valuation Replacement Cost Replacement Accumulated New Less Original Cost Cost New Depreciation Depreciation Sevier Facilities Pump Stations $ 10,255,603 $ 71,377,176 $ 24,344,106 Sewer Lines/Mains 38,583,727 80,001,600 80,001,600 Total $ 48, 839, 330 $ 151, 378, 776 $ 104, 345, 707 47, 033, 070 47, 033, 070 Sources: New port Beach Capital Asset Schedule, 2023; ENR Construction Cost Index; Willdan Financial Services. Fee per Gallon per Day Every impact fee consists of a dollar amount, representing the value of facilities, divided by a measure of demand. In this case, buy -in fees are first calculated as the adjusted system value per gallon per day (GPD). Then these amounts are translated into fees per housing unit (fee per unit) and employment space (fee per 1,000 square feet) by multiplying the cost per GPD by the flow generation rate for each land use category. These amounts become the fee schedule. The calculation of the buy -in fee per GPD for sewer facilities is shown in Table 7.3. The City provided the sewer system's flow capacity, which is 7.44 million gallons per day. City staff confirmed that the sewer system has sufficient capacity to accommodate new development within the planning horizon. The adjusted system value divided by the total capacity of the system yields the facilities impact fee per gallon per day of $6.32 for sewer facilities. Table 7.3: Fee per GPD Total System Value $ 47,033,070 System Flow Capacity (Gallons per Day) 7,440,000 Fee per GPD $ 6.32 Sources: City of New port Beach; Table 7.2, Willdan Financial Services. Fee Schedule The maximum justified fee for sewer facilities is shown in Table 7.4. The fee per GPD is converted to a fee per unit of new development based on the flow generation factors shown in Table 7.1. The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit. 37 1 1 LLDAN IFINANCIAL SERVICES SS5-45 City of Newport Beach Development Impact Fee Nexus Study The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting. In Willdan's experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program. Table 7.4: Maximum Justified Sewer Capacity Fee Schedule A B C=AxB D=CX0.02 E=C+D F=E/Average Cost Per Base Admin Fee per Sq. GIRD GIRD Feel Charge, 2 Total Feel Ft.3 Residential per Dvwellinci Unit 3 $ 6.32 158 $ 1,001 $ 20 $ 1,021 $ 0.56 Nonresidential - per 1,000 Sq. Ft. Commercial $ 6.32 109 $ 688 $ 13 $ 701 $ 0.70 Office 6.32 80 504 10 514 0.51 Industrial 6.32 77 486 9 495 0.49 Note: GPD = Gallons per Day. Fee per average sized dwelling unit, per 1,000 square feet of nonresidential building space. 2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. 3 Assumes an average of 1,803 square feet per dw elling unit based on an analysis of data for the State of California from the 2019 American Housing Survey. Sources: City of Newport Beach; Tables 7.1 and 7.3, Willdan Financial Services. 38 � W 1 LLDAN ,YNL ,,L SEH`.l- SS5-46 8. AB 602 Requirements On January 1, 2022, new requirements went into effect for California jurisdictions implementing impact fees. Among other changes, AB 602 added Section 66016.5 to the Government Code, which set guidelines for impact fee nexus studies. Four key requirements from that section which concern the nexus study are reproduced here: 66016.5. (a) (2) When applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate. 66016.5. (a) (4) If a nexus study supports the increase of an existing fee, the local agency shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee. 66016.5. (a) (5) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A local agency that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development. 66016.5. (a) (6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study. Compliance with AB 602 The following sections describe this study's compliance with the new requirements of AB 602. 66016.5. (a) (2) - Level of Service For fees calculated under the buy -in methodology, the fees are calculated such that new development funds facilities at the existing level of service. Fees calculated using the planned facilities standard represent a lower level of service than currently exists. For fees calculated using the system plan methodology, the fees are calculated such that new development would fund its fair share of an increased level of service. This is contingent on existing development funding its share of the higher level of service through any funding source other than impact fees. All fees in this analysis use one of these approaches. The existing level service in terms of the existing facility cost per capita, or cost per gallon per day is shown in each corresponding chapter. 66016.5. (a) (4) — Review of Original Fee Assumptions This is the first impact fee study conducted by the City of Newport Beach, so there are no original fee assumptions to review. 6016.5. (a) (5) — Residential Fees per Square Foot Impact fees for residential land uses are calculated per square foot for all fee categories and comply with AB 602. 66016.5. (a) (6) — Capital Improvement Plan A description of the planned facilities that the City could fund with impact fee revenue is included in each chapter in this report. Adoption of this nexus study would approve the planned facilities identified herein as the Capital Improvement Plan for this nexus study. The City will select which 39 W 1 LLDAN ,'Jn - SE ILLS SS5-47 City of Newport Beach Development Impact Fee Nexus Study particular projects fund with existing impact fee fund balances and projected fee revenue annually through its budgeting and CIP process. 40 WIIW I LLDAN ,y,1 NL AL SE H`:I- SS5-48 9. Implementation Impact Fee Program Adoption Process Impact fee program adoption procedures are found in the California Government Code section 66016. Adoption of an impact fee program requires the City Council to follow certain procedures including holding a public hearing. Data, such as an impact fee report, must be made available at least 10 days prior to the public hearing. The City's legal counsel should be consulted for any other procedural requirements as well as advice regarding adoption of an enabling ordinance and/or a resolution. After adoption there is a mandatory 60-day waiting period before the fees go into effect. Inflation Adjustment The City can keep its impact fee program up to date by periodically adjusting the fees for inflation. Such adjustments should be completed regularly to ensure that new development will fully fund its share of needed facilities. We recommend that the CCCI be used for adjusting fees for inflation. The CCCI is based on data from ENR and is aggregated and made available for free by the State of California. The fee amounts can be adjusted based on the change in the index compared to the index in the base year of this study (2024). While fee updates using inflation indices are appropriate for periodic updates to ensure that fee revenues keep up with increases in the costs of public facilities, the City will also need to conduct more extensive updates of the fee documentation and calculation (such as this study) when significant new data on growth forecasts and/or facility plans become available. Note that decreases in index value will result in decreases to fee amounts. Reporting Requirements The City will comply with the annual and five-year reporting requirements of the Mitigation Fee Act. For facilities to be funded by a combination of public fees and other revenues, identification of the source and amount of these non -fee revenues is essential. Identification of the timing of receipt of other revenues to fund the facilities is also important. There is no time limit by which impact fee revenue must be spent. However, if the City is accruing impact fee revenue to fund new development's share of a project, then it must make certain findings with respect to unexpended impact fee fund balances after five years. Among other requirements, the five-year report requires the City to "Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements," and to "Designate the approximate dates on which supplemental funding is expected to be deposited into the appropriate account or fund."l On October 13, 2023 AB 516 was signed into law by the Governor of California, and went into effect on January 1, 2024. The bill requires local agencies to: • Include information on projects noted in prior reports and whether construction began on the approximate date noted in the previous report. 1 California Government Code § 66001(d). 41 1 1 LLDAN IFINANCIAL SERVICES SS5-49 City of Newport Beach Development Impact Fee Nexus Study • Explain the reason for any delay in the start of the project and provide a new approximate date construction will begin. • Identify the number of people or entities that receive refunds of Mitigation Fee Act fees. The bill also requires local agencies to inform people paying mitigation fees that they: • Can request an audit to determine if the fees charged by a local agency are more than the amount of money needed to cover the cost of the public improvements. • Can receive information by mail about when the local agency will meet to review its annual Mitigation Fee Act report. • Can access and review mitigation fee information on the local agency's website, and how to do so. Table 9.1 summarizes the annual and five-year reporting requirements identified in the Act. 42 wl,W I LLDAN ,yn NL AL SE HVICLS SS5-50 City of Newport Beach Development Impact Fee Nexus Study Table 9.1: Annual and Five -Year Reporting Requirements CA Gov't Code Recommended Section Timing Reporting Requirements' Fee Adjustment (A) Identify the purpose to which the fee is to be put. (B) Demonstrate a reasonable relationship between the fee and the purpose The fifth fiscal year following the for which it is charged. first deposit into the account or (C) Identify all sources and amounts of funding anticipated to complete fund, and every five years financing in incomplete improvements. thereafter (D) Designate the approximate dates on which supplemental funding is expected to be deposited into the appropriate account or fund. (A) A brief description of the type of fee in the account or fund. (B) The amount of the fee. (C) The beginning and ending balance of the account or fund. (D) The amount of the fees collected and the interest earned. (E) An identification of each public improvement on which fees were expended including share funded by fees. (F) (i) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an Within 180 days after the last incomplete public improvement and the public improvement remains day of each fiscal year incomplete. (ii) An identification of each public improvement identified in a previous report pursuant to clause (i) and whether construction began on the approximate date noted in the previous report. (iii) For a project identified pursuant to clause (ii) for which construction did not commence by the approximate date provided in the previous report, the reason for the delay and a revised approximate date that the local agency will commence construction. (G) A description of any potential interfund transfers. (H) The amount of refunds made (if any). Edited for brevity. Refer to the government code for full description. Sources: California Government Code §66001 and §66006. WILLDAN Financial Services Comprehensive Update Inflationary Adjustment 43 SS5-51 City of Newport Beach Development Impact Fee Nexus Study Programming Revenues and Projects with the CIP The City maintains a Capital Improvement Program (CIP) to plan for future infrastructure needs. The CIP identifies costs and phasing for specific capital projects. The use of the CIP in this manner documents a reasonable relationship between new development and the use of those revenues. The City may decide to alter the scope of the planned projects or to substitute new projects if those new projects continue to represent an expansion of the City's facilities and provide benefit to new development. If the total cost of facilities varies from the total cost used as a basis for the fees, the City should consider revising the fees accordingly. 44 W I LLDAN FINANCIAL SERVICES SS5-52 Appendix Appendix Table A.1: Marine Vessel Inventory Total Replacement Tvoe Count Unit Cost Cost Recreation Vessels RS Venture 2 $ 42,390 $ 84,780 RS Quest 12 102,420 1,229,040 WD Schock Lido 14 3 98,800 296,400 Waterline J22 6 120,000 720,000 Zodiak Pro Classic 420 2 43,026 86,052 Single Ocean Kayak 8 3,144 25,152 Doubel Ocean Kayak 16 9,472 151,552 Subtotal 49 $ 2,592,976 Harbor Vessels Boston Whaler, 19' 1 $200,000 $ 200,000 Chislett, 21' 2 175,000 350,000 Subtotal 3 $ 550,000 Total 52 $ 3,142,976 Source: City of Newport Beach. 45 wllW I LLDAN ,y,, NL AL SEH`.l- SS5-53 City of Newport Beach Development Impact Fee Nexus Study Appendix Table A.2: Police Vehicle and Equipment Inventory UNIT # YEAR MAKE MODEL ASSIGN DESCRIPTION F-9 CATEGORY REPLACEMENT COST 1 1804 Plain/Detective $ 65,000 2 1805 2020 FORD EXPLORER COP SUV SUV 35,000 3 1820 2019 FORD EXPLORER COP Volunteers SUV 36,000 4 1821 2019 GMC CANYON COP Volunteers Pickup Truck 28,000 5 1834 2009 FORD RANGER COP Volunteers Pickup Truck 28,000 6 1842 2016 Freightliner 3500 SPRINTER COP Command Post Van 175,000 7 1844 Plain/Detective 46,000 8 1855 2007 TOYOTA CAMRY COP Sedan 38,000 9 1856 Plain/Detective 38,000 10 1876 2007 NISSAN QUEST COP Van 35,000 11 1898 2020 FORD 350 PASSENGER COP Explorers' Van Van 52,000 12 1917 Plain/Detective 40,000 13 1919 Plain/Detective 50,000 14 1931 2005 FORD ESCAPE SSD Mail Vehicle SUV 26,000 15 1935 Plain/Detective 50,000 16 1937 2017 DODGE DURANGO SSD SUV 36,000 17 1940 2009 NISSAN TITAN SSD 4X2 Pickup Pickup Truck 36,000 18 1941 2019 DODGE DURANGO SSD SUV 35,000 19 1967 2019 FORD F-250 SSD 4WD Pickup Pickup Truck 45,000 20 1977 2008 CHEVY SILVERADO SSD 4WD Pickup Pickup Truck 45,000 21 2001 2021 FORD EXPLORER PATROL Patrol SupvSUV Patrol Vehicle 57,000 22 2004 2016 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 23 2008 2014 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 24 2016 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 25 2017 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 26 2022 2018 FORD EXPLORER PATROL PatroISUV Patrol Vehicle 64,000 27 2024 2018 FORD EXPLORER PATROL PatroISUV Patrol Vehicle 64,000 28 2025 2018 FORD EXPLORER PATROL PatroISUV Patrol Vehicle 64,000 29 2027 2018 CHEVY SILVERADO PATROL 4WD Patrol Truck Patrol Vehicle 62,000 30 2028 2020 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 53,000 31 2029 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 32 2030 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 33 2032 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 34 2040 2012 FORD CROWN VIC PATROL Patrol LT Patrol Vehicle 64,000 35 2041 2019 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 36 2042 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 37 2043 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 38 2044 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 39 2045 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 40 2046 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 41 2047 2021 FORD HYBRID EXPLORE PATROL Patrol SUV Patrol Vehicle 57,000 42 2051 Plain/Detective 45,000 43 2053 2019 FORD EXPLORER PATROL Patrol K-9 SUV Patrol Vehicle 64,000 44 2054 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 45 2058 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 46 2062 2014 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 47 2065 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 48 2066 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 49 2067 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 50 2069 2019 FORD EXPLORER PATROL Patrol SUV Patrol Vehicle 64,000 51 2070 Plain/Detective 50,000 52 2072 Plain/Detective 50,000 53 2076 2019 FORD EXPLORER PATROL Patrol K-9 SUV Patrol Vehicle 64,000 54 2080 2019 LOGAN CARRIER PATROL Horse Trailer Trailer 20,000 55 2081 2014 LENCO BEAR CAT PATROL SWAT Armored Vehicle Specialty Vehicle 350,000 56 2082 2003 Freightliner VAN PATROL SWAT Van Heavy Truck 275,000 57 2084 2018 LOGAN CROSSFIRE PATROL Horse Trailer Trailer 20,000 58 2085 2020 FORD F-150 PATROL 4WD Patrol Truck Patrol Vehicle 62,000 59 2086 2020 FORD F-150 PATROL 4WD Patrol Truck Patrol Vehicle 62,000 60 2087 2013 FORD E-350 PATROL Transport Van Van 70,000 61 2089 2019 FORD F-150 PATROL 4WD Patrol Truck Patrol Vehicle 62,000 62 2095 2014 KAWASAKI BRUTEFORCE 30, PATROL Beach ATV Beach ATV 6,000 63 2096 2014 KAWASAKI BRUTEFORCE 30, PATROL Beach ATV Beach ATV 6,000 64 2098 2020 POLARIS RANGER CREW PATROL Beach UTV Beach ATV 23,000 65 2122 2016 BMW R1200RTP TRAFFIC Motorcycle Police Motorcycle 34,000 66 2123 2016 BMW R1200RTP TRAFFIC Motorcycle Police Motorcycle 34,000 67 2127 2016 BMW R1200RTP TRAFFIC Motorcycle Police Motorcycle 34,000 68 2128 2016 BMW R1200RTP TRAFFIC Motorcycle Police Motorcycle 34,000 69 2129 2016 BMW R1200RTP TRAFFIC Motorcycle Police Motorcycle 34,000 70 2131 2017 FORD EXPLORER DET DC Plain/Detective 45,000 71 2133 2009 CHEVY SILVERADO 2WD TRAFFIC Comm Enforcement Pickup Truck 62,000 72 2138 2014 FORD EXPLORER TRAFFIC Traffic Investigators Plain/Detective 55,000 46 W I LLDAN FINANCIAL SERVICES SS5-54 City of Newport Beach Development Impact Fee Nexus Study Appendix Table A.2: Police Vehicle and Equipment Inventory Continued REPLACEMENT UNIT # YEAR MAKE MODEL ASSIGN DESCRIPTION F-9 CATEGORY COST 73 2139 Plain/Detective 40,000 74 2144 Sedan 46,000 75 2147 2015 TOYOTA TACOMA TRAFFIC Parking Control Traffic Vehicle 38,000 76 2149 2015 TOYOTA TACOMA TRAFFIC Parking Control Traffic Vehicle 38,000 77 2150 2016 TOYOTA TACOMA TRAFFIC Parking Control Traffic Vehicle 38,000 78 2151 2016 TOYOTA TACOMA TRAFFIC Parking Control Traffic Vehicle 38,000 79 2152 2021 TOYOTA TACOMA TRAFFIC Parking Control Traffic Vehicle 38,000 80 2160 2016 CHEVY COLORADO TRAFFIC Animal Control 4WD Traffic Vehicle 43,000 81 2162 2017 CHEVY COLORADO TRAFFIC Animal Control 4WD Traffic Vehicle 43,000 82 2170 2017 CHEVY COLORADO TRAFFIC Animal Control 4WD Traffic Vehicle 43,000 83 2171 2019 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 34,000 84 2172 2019 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 34,000 85 2173 2019 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 34,000 86 2174 2020 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 34,000 87 2175 2020 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 34,000 88 2176 2020 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 34,000 89 2177 2020 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 34,000 90 NEW 2021 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 40,000 91 NEW 2023 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 40,000 92 NEW 2023 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 40,000 93 2178 2013 HAULMARK PASSPORT TRAFFIC Enclosed ATV Trailer Trailer 20,000 94 2179 2020 BMW R1250RT TRAFFIC Motorcycle Police Motorcycle 34,000 95 2180 2009 LOOK TRAILER TRAFFIC Explorers' Box Trailer Trailer 15,000 96 2181 2016 KENDON TRAILER TRAFFIC Stand-up Motor hauler Trailer 5,000 97 2193 2008 ATS RADAR TRAFFIC Radar Trailer Trailer 20,000 98 2194 2014 ATS RADAR TRAFFIC Radar Trailer Trailer 20,000 99 2226 Plain/Detective 38,000 100 2227 Plain/Detective 38,000 101 2228 Plain/Detective 40,000 102 2229 Plain/Detective 38,000 103 2259 Plain/Detective 40,000 104 2262 Plain/Detective 40,000 105 2265 Plain/Detective 40,000 106 2267 Plain/Detective 40,000 107 2271 Plain/Detective 40,000 108 2272 Plain/Detective 40,000 109 2275 2014 FORD EXPLORER DET CSI SUV 40,000 110 2278 2014 FORD EXPLORER DET CSI SUV 40,000 111 2286 2011 FORD E-350 DET Transport Van Van 70,000 112 2287 Plain/Detective 38,000 113 2288 Plain/Detective 40,000 114 2289 Plain/Detective 40,000 SUBTOTAL -VEHICLES $ 5,748,000 Equipment 115 In -Car Computers $ 200,000 116 Gas Masks 105,000 117 Patrol Helmets 75,000 118 Patrol Rifles 78,000 119 Automated External Defibrillators 90,000 SUBTOTAL - EQUIPMEN $ 548,000 Total $ 6,296,000 Source: City of Newport Beach. 47 W I LLDAN FINANCIAL SERVICES SS5-55 City of Newport Beach Development Impact Fee Nexus Study Appendix Table A.3: Fire Facilities Worker Weighting Factor Population or Category Calls for Service Employees Calls per Capita Residential 7,307 82,008 0.09 Nonresidential 2,871 72,776 0.04 Other2 1,555 Worker Weighting Factor' 0.44 Nonresidential calls per capita / residential calls per capita. 2 "Other" calls are those that cannot be classified as residential or nonresidential -serving calls. Sources: Newport Beach Fire Department; Willdan Financial Services. 48 VVIW I LLDAN YP NL AL SE VICLS SS5-56 City of Newport Beach Development Impact Fee Nexus Study Appendix Table AA: Fire/Marine Vehicle, Apparatus and Equipment Invento Estimated Org Name EQ # Description Model Yet Manufacturer II Model ID Replacement Cost Fire/Marine 2844 SEAWATCH 3 - 29.5 FT RESCUE BOAT 1985 NOREK T58 $ 650,000 Fire/Marine 2842 SEAWATCH 1 - 29.5 FT RESCUE BOAT 2003 CRYSTALINER RESCUE 650,000 Fire/Marine 2876 TRAILER WATERCRAFT 2003 ZIEMAN G213 3,000 Fire/Marine 2840 SEAWATCH 2 - 29.5 FT RESCUE BOAT 2007 CRYSTALINER RESCUE 650,000 Fire/Marine 2866 QUAD 2017 YAMAHA YXC70VPSHL 22,000 Fire/Marine 2873 YAMAHA WAVE RUNNER 2014 YAMAHA FA1800-N FX 18,000 Fire/Marine 2874 YAMAHA WAVE RUNNER 2014 YAMAHA FA1800-N FX 18,000 Fire/Marine 2845 SUV 4X4 2015 CHEVROLET TAHOE 46,000 Fire/Marine 2897 1/4 TON 4X4 PICK UP 4 DOOR 2017 TOYOTA TACOMA 45,000 Fire/Marine 2898 1/4 TON 4X4 PICK UP 4 DOOR 2017 TOYOTA TACOMA 45,000 Fire/Marine 2896 1/4 TON 4X4 PICK UP 4 DOOR 2017 TOYOTA TACOMA 45,000 Fire/Marine 2833 1/4 TON 4X4 PICK UP TRUCK 2018 TOYOTA TACOMA 44,000 Fire/Marine 2805 1/4 TON 4X4 PICK-UP TRUCK 2019 TOYOTA TACOMA 45,000 Fire/Marine 2803 1/4 TON 4X4 PICK-UP TRUCK 2019 TOYOTA TACOMA 45,000 Fire/Marine 2804 1/4 TON 4X4 PICK-UP TRUCK 2019 TOYOTA TACOMA 45,000 Fire/Marine 2802 1/4 TON 4X4 PICK-UP TRUCK 2019 TOYOTA TACOMA 45,000 Fire/Marine 2801 TAHOE 4X4 SUV 2018 CHEVROLET TAHOE 46,000 Fire/Marine 2830 FORD EXPEDITION 4X4 2020 FORD EXPEDITION - Fire/Marine 2806 1/4 TON 4X4 PICK-UP TRUCK 2020 TOYOTA TACOMA Fire/Marine 2807 1/4 TON 4X4 PICK-UP TRUCK 2020 TOYOTA TACOMA Fire/Marine 2808 1/4 TON 4X4 PICK-UP TRUCK 2020 TOYOTA TACOMA Fire/Marine 2809 1/4 TON 4X4 PICK-UP TRUCK 2021 TOYOTA TACOMA Fire/Marine 2810 1/4 TON 4X4 PICK-UP TRUCK 2021 TOYOTA TACOMA Fire/Marine 2811 1/4 TON 4X4 PICK-UP TRUCK 2021 TOYOTA TACOMA - Fire-Admin 2308 TRUCK 1 TON FLATBED STAKE 2009 FORD F-350 41,967 Fire-Admin 2311 1/2 TON 4X4 PICK-UP TRUCK 2014 FORD F-150 36,147 Fire-Admin 2301 SUV 4X4 2019 CHEVROLET TAHOE 55,077 Fire -Community Education 2309 TRUCK 1/2 TON EXi CAB 2009 FORD F-150 26,000 Fire -Community Education 2303 1/2 TON PICKUP 4X4 2021 FORD F-150 - Fire -EMS 2648 MEDIC 2013 INT NAVISTAR TERRASTAR S 305,000 Fire -EMS 2647 MEDIC 2013 INT NAVISTAR TERRASTAR S 305,000 Fire -EMS 2646 MEDIC 2013 INT NAVISTAR TERRASTAR S 305,000 Fire -EMS 2601 POLARIS RANGER ATV 2018 POLARIS RANGER 18,000 Fire -EMS 2649 FREIGHTLINER/LEADER AMBULANCE 2017 FREIGHTLINER FL-70 305,000 Fire -EMS 2650 LEADER AMBULANCE 2018 FREIGHTLINER FL70 390,000 Fire -EMS 2651 LEADER AMBULANCE 2018 FREIGHTLINER FL70 390,000 Fire -EMS 2502 SUV 2015 FORD EXPLORER - Fire -EMS 2302 SUV 2015 FORD EXPLORER 38,497 Fire -EMS 2602 16' REHAB TRAILER 2019 SOUTHEASTEFTRL0007 70,000 Fire -Operations 2441 AMERICAN LA FRANCE FIRE ENGINE 1920 LAFRANCE FIRE TRUCK - Fire -Operations 2462 SIMON LTI 100FT. AERIAL 1997 SPARTAN / SIN 52-88-320 796,564 Fire -Operations 2410 FIRE TRUCK - PUMPER 1250 GALLON 2003 AMER LAFRAN EAGLE 700,000 Fire -Operations 2411 FIRE TRUCK - PUMPER 1250 GALLON 2003 AMER LAFRAN EAGLE 700,000 Fire -Operations 2415 FIRE TRUCK - PUMPER 1250 GALLON 2005 AMER LAFRAN EAGLE 700,000 Fire -Operations 2497 UTILITY TRAILER 2012 CARRY ON CO6X14GW 2,200 Fire -Operations 2402 FIRE ENGINE PUMPER 2010 PIERCE ARROW Xi 721,028 Fire -Operations 2403 FIRE ENGINE PUMPER 2010 PIERCE ARROW Xi 721,028 Fire -Operations 2480 1/2 TON 4X4 PICK UP TRUCK 2014 FORD F-150 36,147 Fire -Operations 2429 3/4 TON 4X4 XLT CREW CAB 2015 FORD F-250 61,389 Fire -Operations 2463 AERIAL LADDER FIRE TRUCK 2011 PIERCE ARROW Xi ML 1,436,603 Fire -Operations 2472 FIRE ENGINE PUMPER 2014 PIERCE ARROW Xi 800,624 Fire -Operations 2471 FIRE ENGINE PUMPER 2014 PIERCE ARROW Xi 800,624 Fire -Operations 2474 FIRE ENGINE PUMPER 2014 PIERCE ARROW Xi 800,624 Fire -Operations 2473 FIRE ENGINE PUMPER 2014 PIERCE ARROW Xi 800,624 Fire -Operations 2508 SUV 4X4 2015 CHEVROLET TAHOE - Fire -Operations 2401 SUV 4X4 2015 CHEVROLET TAHOE 49,926 Fire -Operations 2475 FIRE ENGINE PUMPER 2016 PIERCE ARROW Xi 858,962 Fire -Operations 2476 FIRE ENGINE PUMPER 2016 PIERCE ARROW Xi 858,962 Fire -Operations 2459 SUV 4X4 2017 CHEVROLET SUBURBAN 65,689 Fire -Operations 2488 ONAN GENERATOR 2019 ONAN 50DGCA 30,000 Fire -Operations 2464 AERIAL LADDER TRUCK WITH PUMP (C 2015 PIERCE VELOCITY 1,662,966 Fire -Operations 2404 SUV 4X4 2019 CHEVROLET TAHOE 55,077 Fire -Operations 2430 OES PUMPER 2005 HME 18 SFO - Fire -Operations 2405 FORD EXPEDITION 4)(4 2020 FORD EXPEDITION Fire -Operations 2477 FIRE ENGINE PUMPER 2021 PIERCE ARROW Xi Fire -Operations 2478 FIRE ENGINE PUMPER 2021 PIERCE ARROW Xi - Fire -Prevention 2506 SUV FIRE TRAINING 2010 FORD EXPLORER 30,825 Fire -Prevention 2511 SUV 2020 FORD ESCAPE Fire -Prevention 2510 SUV 2020 FORD ESCAPE Fire -Prevention 2509 SUV 2020 FORD ESCAPE - Fire-Trng/Jr Guards 2837 1/2 TON 4X4 TRUCK 2013 FORD F-150 36,000 Fire-Trng/Jr Guards 2860 FORD F-150 4X4 2017 FORD F-150 40,000 Total $ 17,513,550 Source: Citv of New Dort Beach. 49 W I LLDAN FINANCIAL SERVICES SS5-57