HomeMy WebLinkAbout2024-83 - Adopting the Development Impact Fee Nexus Study for the City of Newport Beach and Establishing Development Impact Fees for Nonresidential and Residential Development (PA2021-127)RESOLUTION NO. 2024-83
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADOPTING THE
DEVELOPMENT IMPACT FEE NEXUS STUDY FOR THE
CITY OF NEWPORT BEACH AND ESTABLISHING
DEVELOPMENT IMPACT FEES FOR NONRESIDENTIAL
AND RESIDENTIAL DEVELOPMENT (PA2021-127)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the
City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in the
Charter and the State Constitution, and the power to exercise, or act pursuant to any and
all rights, powers, and privileges, or procedures granted or prescribed by any law of the
State of California;
WHEREAS, pursuant to Government Code Section 66000, et seq. ("Mitigation
Fee Act"), which governs the establishment of Development Impact Fees ("DIFs"), the
City is duly authorized to impose DIFs for purposes of defraying all or a portion of the
costs of public facilities related to new development occurring within the City;
WHEREAS, pursuant to the Mitigation Fee Act, local agencies are required to
make specific findings when imposing fees to mitigate impacts of development projects
and ensure the fees are justified and used appropriately;
WHEREAS, Newport Beach will continue to experience additional development
and expansion based on population and employment growth projections from the
Southern California Association of Governments and as identified in the City's General
Plan 6t" Cycle Housing Element;
WHEREAS, new development, especially projects involving an addition or a
change of use will increase demand for public services and the facilities required to deliver
them;
WHEREAS, Assembly Bill 602 ("AB 602") amended the Mitigation Fee Act in 2021
and emphasized the need to adopt a DIF Nexus Study ("Nexus Study") at a public hearing
prior to the adoption of any new or increased DIF;
WHEREAS, AB 602 requires in part that the Nexus Study identify the existing
level of service for each public facility, identify new levels of service, include an
explanation of why the new levels of service are more appropriate, and include
information to support the required findings for adoption of new or increased DIFs;
Resolution No. 2024-83
Page 2 of 5
WHEREAS, the City retained the professional services of Willdan Financial
Services to prepare the required Nexus Study as set forth in Exhibit "A," which is attached
hereto and incorporated herein by reference;
WHEREAS, the Nexus Study provides a quantified basis to support each DIF and
the legal support for the required findings to justify the amount of each DIF, based on the
level of service of public facilities, and the project burdens on those facilities caused by
prospective development in the City;
WHEREAS, the City's Capital Improvement Program for Fiscal Year 2024-25
through 2029-30 and 2024 Facilities Financing Plan indicate the approximate location,
size, time of availability, and cost estimates for all facilities or improvements to be financed
by the City's DIFs;
WHEREAS, the City Council held a study session on August 27, 2024, allowing
an early opportunity for the public to provide input on the Nexus Study's findings and City
staff's recommendations on the proposed DIFs; and
WHEREAS, a duly noticed public hearing was held by the City Council on
November 12, 2024, in the Council Chambers located at 100 Civic Center Drive, Newport
Beach, California. A notice of time, place and purpose of the public hearing was given in
accordance with California Government Code Section 6000 et seq., California
Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and the Mitigation Fee
Act. Evidence, both written and oral, was presented to, and considered by, the City
Council at this public hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby adopt the Development Impact Fee
Nexus Study and Fiscal Year 2024-25 Development Impact Fee Schedule, both of which
are attached hereto as Exhibits "A" and "B," respectively, and incorporated herein by
reference.
Resolution No. 2024-83
Page 3 of 5
Section 2: Ordinance Nos. 2024-_, 2024-_, and 2024-_, adopted
contemporaneously with this resolution, authorize the City to apply the development
impact fees for Recreation, Police, Fire, Water, and Sewer Facilities provided herein.
Additionally, based on the Nexus Study and consistent with the requirements of the
Mitigation Fee Act, the City Council does hereby find, as fully set forth in the Nexus Study,
the following:
a. That the purpose of the impact fees has been identified;
b. That the use of the fees has been identified;
c. That there is a reasonable relationship between the use and the type of project
on which it is imposed; and
d. That there is a reasonable relationship between the need for public
improvements and the type of project on which it is imposed.
Section 3: The Fiscal Year 2024-25 Development Impact Fee Schedule set
forth in Exhibit "B" shall be adjusted annually for inflation based on the California
Construction Cost Index ("CCCI") one year after the effective date of this resolution.
Section 4: The Community Development Director or, if appealed, the City
Council shall interpret the total amount of the fees owed in accordance with the Fiscal
Year 2024-25 Development Impact Fee Schedule set forth in Exhibit "B" and the
Development Impact Fee Guidelines which is attached as Exhibit "C," and incorporated
herein by reference.
Section 5: The fees identified in the Fiscal Year 2024-25 Development Impact
Fee Schedule set forth in Exhibit "B," shall apply to all land use and building permit
applications that are not deemed complete by the Community Development Department
prior to the effective date of this resolution.
Section 6: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Resolution No. 2024-83
Page 4 of 5
Section 7: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 8: The City Council finds the introduction and adoption of this resolution
is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment) and 15060(c)(3) (the activity is not a project as
defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title
14, Division 6, Chapter 3, because it has no potential for resulting in physical change to
the environment, directly or indirectly.
Resolution No. 2024-83
Page 5 of 5
Section 9: This resolution shall be effective 60 calendar days after its adoption
by the City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 12th day of November, 2024.
Will O'Neill
Mayor
ATTEST:
)WA A ci
:w. 1 ` '•.
Leilani I. Brown
City Clerk la
APPROVED AS TO FORM:
CITY TTORNEY'S OFFICE
Aaron C. Harp
City Attorney
Attachments: Exhibit A — Development Impact Fee Nexus Study
Exhibit B — Fiscal Year 2024-25 Development Impact Fee Schedule
Exhibit C — Development Impact Fee Guidelines
Exhibit "A"
Development Impact Fee Nexus Study
CITY OF NEWPORT BEACH
DEVELOPMENT IMPACT FEE NEXUS STUDY
OCTOBER 22, 2024
Oakland Office
66 Franklin Street
Suite 300
Oakland, CA 94607
Tel: (510) 832-0899
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
Washington, DC
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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
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Future Level of Service
Fee Revenue Projection
Fee Schedule
Mitigation Fee Act Findings
Purpose of Fee
Use of Fee Revenues
Benefit Relationship
Burden Relationship
Proportionality
5. FIRE/LIFE SAFETY FACILITIES
Service Population
Existing Facility Inventory
Planned Facilities
Cost Allocation
Existing Level of Service
Future Level of Service
Fee Revenue Projection
Fee Schedule
Mitigation Fee Act Findings
Purpose of Fee
Use of Fee Revenues
Benefit Relationship
Burden Relationship
Proportionality
21
22
22
23
23
23
24
24
24
....................................................
26
26
27
28
28
28
28
29
29
30
30
30
31
31
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
It
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Programming Revenues and Projects with the CIP 44
APPENDIX......................................................................................... 45
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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 funding to specific
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.
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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
"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 the 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 the CIP is updated. 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 EA summarizes the maximum justified development impact fees that meet the City's
identified needs and comply with the requirements of the Act.
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E.1: Maximum Justified Development Impact Fee Schedule
Land Use
Recreation
Facilities
Police
Facilities
Fire/Life
Safety
Facilities
Water Sewer
Capacity Capacity
Total
Residential - per Sq. Ft.
$ 4.70
$ 1.01
$ 1.73
$ 0.90
$ 0.56
$ 8.90
Nonresidential - per Sq. Ft.
Commercial
$ -
$ 0.74
$ 1.82
$ 0.91
$ 0.70
$ 4.17
Office
-
1.14
2.79
0.62
0.51
5.06
Industrial
-
0.40
0.99
0.77
0.49
2.65
Sources: Tables 3.6, 4.7, 5.7, 6.4, and 7.4.
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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.
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 the City of 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 outlined in the fee
schedules presented in this report.
The City of 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
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City of Newport Beach Development Impact Fee Nexus Study
most current available 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.
r ram Tom no =
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
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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.
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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 Inventory 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.
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.
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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; and
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 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 for 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.
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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
Primary Residence Square Feet
x Single Family Impact Fee = ADU Impact Fee
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 came 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 non-residential building square feet were estimated by
dividing employee counts by the occupancy density factors presented in the following table.
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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
Qmllina Units 2
Single Family 27,433 28,307 874
Multifamily 17,677 25,544 7,867
Total 45,110 49,001 8,741
Emplovment 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 Square 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' OnThewp. Increase
of 1,500 jobs based on data from SCAG SoCal Connect 2020 Grow th
Forecast. Assumes current ratio among land uses w ill 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 Grow th
Forecast Technical Report, September 3, 2020; OnTheWp Application,
http://onthemap.ces.census.gov; Table 2.2, Willdan Financial Services.
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.
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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 Density 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 (New port 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 Newport Beach.
11
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City of Newport Beach Development Impact Fee Nexus Study
Figure 1
�n
•2 u
K]
•
• u �
��• • M1
fiJ H�� H. ll pN
G3 _ •G� •• W •
O)
Newport Facility Inventory • `.• • c! w
• Community Center •
• Fire Station .. •
Parks
re •
TIER t •
TIER 2
SIER 3
12
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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 Population
Residents
Existing (2024) 82,008
New Development (2024-2045) 14,099
Total (2045) 96,107
Source: Table 2.1.
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 the City's 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.
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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
Newport Coast Community Center
Theater Arts Center
West Newport Community Center
Subtotal
Buildings
Bonita Creek Park Community Center
Carroll Beek Community Center'
Junior Lifeguard Building
Oasis Senior Citizens Center
Cliff Dr Community Center
Mariners Park Youth Center
Grant Howald Community Youth Center'
Newport Coast Community Center
West Newport Community Center
Theater Arts Center'
Subtotal
Harbor Facilities
Marina Park Recreation Facilities, Offices
and Class Rooms
Lighthouse Restaurant
Sailing Center
Harbor Department Offices
Marina Park Building
Marina Park marina — 23 slips
Balboa Yacht Basin — 172 slips
Subtotal
Vessels (See Appendix Table A.1)
Recreation Vessels
Harbor vessels
Subtotal
Total
4.92 acres $ 23,028,575 $ 113,252,475
3.06
acres
55,669,642
170,512,612
0.10
acres
23,028,575
2,302,858
0.82
acres
23,028,575
18,792,797
8.90
acres
$ 304,860,742
2,876
sq. ft.
$ 850
$ 2,444,600
1,500
sq. ft.
-
-
5,400
sq. ft.
850
4,590,000
43,232
sq. ft.
850
36,747,200
761
sq. ft.
850
646,850
1,820
sq. ft.
850
1,547,000
5,146
sq. ft.
-
-
16,865
sq. ft.
850
14,335,250
11,980
sq. ft.
850
10,183, 000
7,947
sq. ft.
-
-
97,527
sq. ft.
$ 70,493,900
6,500
sq. ft. $
3,846
$ 25,000,000
2,500
sq. ft.
850
2,125, 000
3,000
sq. it.
850
2,550,000
1,000
sq. ft.
850
850,000
24,390
sq. ft.
850
20,731,500
23
slips
86,957
2,000,000
172
slips
40,698
7,000,000
No value is shown for these facilities because they will be replaced by the planned facilities.
Sources: City of Newport Beach; Tables 2.3 and A.1, VUlldan Financial Services.
$ 60,256,500
$ 2,592,976
550,000
$ 3,142, 976
$ 438,754,118
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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 Sa. 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 Newport Beach.
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: Existinq 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.
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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.
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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�� Total Fee' 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 recreation
facilities 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
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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
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.
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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.
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
Work ers
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 weighted 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.
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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
of 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 (Alpendix 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 Newport 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 77,000 Square Feet $ 1,200 $ 92,400,000
Total $ 92,400,000
Sources: City of Newport Beach.
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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 Existinq 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 weighting 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 police 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.
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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 Worker? 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 which will 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 must 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
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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 a C=AxB D=Cx0.02 E=C+D F=E/Average
Cost Per Admin Fee per
Land Use Capita Densitv Base Fee' Charge1, z Total Fee Sg. Ft.3
Residential - per Dwelling $ 1,104 1.61 1 $ 1,777 $
Nonresidential - per 1,000 Sq. Ft.
Commercial $ 342 2.12 $ 727
Office 342 3.26 1,113
Industrial 342 1.16 396
36 $ 1,813 $ 1.01
15 $ 742 $ 0.74
22 1,135 1.14
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.
'Assumes 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 4.5.
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
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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 development 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
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City of Newport Beach Development Impact Fee Nexus Study
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.
25
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su-11F,
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)
New Development
Total (2045)
82,008
14,099
96,107
1.00
1.00
82,008
14,099
96,107
Workers'
Existing (2024)
72,776
0.44
32,021
New Development
1,500
0.44
660
32,681
Total (2045) 74,276
Combined Residents and Weighted Workers
Existing (2024) 114,029
New Development 14,759
Total (2045) 128,788
Workers are weighted 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.
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City of Newport Beach Development Impact Fee Nexus Study
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
Quantitv Units Unit Cost Cost
Land
Fire Station #1 1
0.29
Acres
$55,669,642
Fire Station #2
0.41
Acres
55,669,642
Fire Station #32
-
Acres
23,028,575
Fire Station #4
0.10
Acres
55,669,642
Fire Station #53
0.36
Acres
23,028,575
Fire Station #6
0.33
Acres
23,028,575
Fire Station #7
1.65
Acres
11,324,133
Fire Station #8
1.09
Acres
55,669,642
Subtotal
4.23
Buildings
Fire Station #14
3,423
Sq.
Ft. $
Fire Station #2
11,600
Sq.
Ft.
Fire Station #34
13,000
Sq.
Ft.
Fire Station #4
4,597
Sq.
Ft.
Fire Station #5
6,513
Sq.
Ft.
Fire Station #6
4,436
Sq.
Ft.
Fire Station #7
11,207
Sq.
Ft.
Fire Station #8
7,000
Sq.
Ft.
Lifeguard HQ (Newport Pier)4
2,500
Sq.
Ft.
Lifeguard HQ (CDM)
1,832
Sq.
Ft.
Subtotal
66,108
Vehicles and Apparatus (Appendix Table A.4)
Total Cost - Existing Facilities Inventory
ZoT
$ 16,144,196
22, 824, 553
5,566,964
8,290,287
7,599,430
18, 684, 819
60, 679, 910
$ 139,790,160
10, 440, 000
4,137, 000
5,862,000
3,992,000
10, 086, 000
6,300,000
900 1,649,000
$ 42,466,000
T, 17 513 55n
$ 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 with the Corona del Mar Library. Land acreage allocated to each use proportionally
based on square footage of each use.
" No value is included for Fire Station #1, #3 and Lifeguard HQ, since they will be replaced by the planned facilities
Sources: aty of Newport Beach Fire Department; Tables 2.3 and AA, Willdan Financial Services.
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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 New port 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.
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Table 5.5: System Standard Cost per Capita
Value of Existing Facilities $ 199,769,710
Value of Planned Facilities 46,336,175
Total System Value (2045) $ 246,105,885
Future Service Population (2045) 128,788
Cost per Capita $ 1,911
Facility Standard per Resident $ 1,911
Facility Standard per Worker' 841
Based on a w eighting 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: Proiected Fee Revenue
Cost per Capita $ 1,911
Growth in Service Population (2023- 2045) 14,759
Fee Revenue $ 28,204,000
Net Cost of Planned Facilities $ 46,336,175
Non -Fee Revenue To Be Identified $ (18,132,175)
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
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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 Safetv 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 $ 1,911 1.61 $ 3,076 $ 61 $ 3,137 $ 1.73
Nonresidential -per 1, 000 Sq. Ft.
Commercial $ 841 2.12 $ 1,786 $ 35 $ 1,821 $ 1.82
Office 841 3.26 2,737 54 2,791 2.79
Industrial 841 1.16 973 19 992 0.99
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
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City of Newport Beach Development Impact Fee Nexus Study
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).
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
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City of Newport Beach Development Impact Fee Nexus Study
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. See Table 2.2 for the occupancy density assumptions
that drive the proportionality of the fees between the land uses included in this study.
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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 240.00
Nonresidential -per 1,000 Sq. Ft.
Commercial 1,757 13.07 134.45
Office 2,000 21.78 91.83
Industrial 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 Flan, 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's 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.
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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 Engineering News -
Record (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 Category Original 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
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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 8 C=AxB D=CX0.02 E=C+D F=E/Average
Cost Per Base Admin Fee per
GPD GPD Feel Charges, z 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
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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 Type Factor' Factor2 1,000 Sq. Ft.
Residential Dwelling Unit
240.00
0.66
158.40
Nonresidential -per 1.000 Sq. Ft.
Commercial
134.45
0.81
108.90
Office
91.83
0.87
79.89
Industrial
114.78
0.67
76.90
Gallons per unit per day for residential. Gallons per 1,000 building square feet per day for
nonresidential. See Table 6.1.
2 Assumed percentage of w ater flow generation that is ultimately returned to the sew er system.
Sources: City of Newport 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
36
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City of Newport Beach Development Impact Fee Nexus Study
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.
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
Sewer 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
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City of Newport Beach Development Impact Fee Nexus Study
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.
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.
GPD GPD Feel Charge', 2 Total Fee' F0
Residential per Dwelling Unit 3
$ 6.32
158.40
$ 1,001 $
20
$
1,021 $
0.56
Nonresidential - per 1,000 Sq. Ft.
Commercial
$ 6.32
108.90
$ 688 $
13
$
701 $
0.70
Office
6.32
79.89
504
10
514
0.51
Industrial
6.32
76.90
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
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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 were 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
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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
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FINANCIAL SERVICES
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.
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.
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."1
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
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NANCIAL SERVICES
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
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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.
66001.(d) first deposit into the account or (C) Identify all sources and amounts of funding anticipated to complete Comprehensive
fund, and every five years financing in incomplete improvements. Update
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 The 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) (1) 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 Inflationary
66006. (b) day of each fiscal year incomplete. Adjustment
(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
F a s—i—
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 a 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
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Appendix
Appendix Table A.1: Marine Vessel Inventory
Tota I
Replacement
Tvne 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
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City of Newport Beach Development Impact Fee Nexus Study
Appendix Table A.2: Police Vehicle and Equipment Inventory
REPLACEMENT
UNIT # YEAR MAKE
MODEL
ASSIGN
DESCRIPTION
F-9 CATEGORY
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
189B
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
Patro]SUV
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/Detecthe
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
R120ORTP
TRAFFIC
Motorcycle
Police Motorcycle
34.000
66
2123
2016 BMW
R120ORTP
TRAFFIC
Motorcycle
Police Motorcycle
34,000
67
2127
2016 BMW
R120ORTP
TRAFFIC
Motorcycle
Police Motorcycle
34.000
68
2128
2016 BMW
R120ORTP
TRAFFIC
Motorcycle
Police Motorcycle
34,000
69
2129
2016 BMW
R120ORTP
TRAFFIC
Motorcycle
Police Motorcycle
34,000
70
2131
2017 FORD
EXPLORER
DET
DC
Plain/Detecthe
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
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FINANCIAL SERVICES
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 HALLMARK
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
CS]
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
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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: New port Beach Fire Department; Willdan Financial Services.
48
VV WILLDAN
City of Newport Beach Development Impact Fee Nexus Study
Appendix Table A.4: Fire/Marine Vehicle, Apparatus and Equipment Invento
Estimated
Org Name
EQ #
Description
Model Yei Manufacturer
I Model ID
Replacement Cost
Fire/Madne
2844
SEAWATCH 3-29.5 FT RESCUE BOAT 1985
NOREK
T58
$ 650.000
Fire/Madne
2842
SEAWATCH 1 -29.5 FT RESCUE BOAT
2003
CRYSTALINER
RESCUE
650,000
Fire/Marine
2876
TRAILER WATERCRAFT
2003
7JEMAN
G2B
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/Madne
2805
1/4 TON 4X4 PICK-UP TRUCK
2019
TOYOTA
TACOMA
45.000
Fire/Marine
2803
114 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
114 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 112 TON EXT CAB
2009
FORD
F-150
26,000
Fire -Community Education
2303
112 TON PICKUP 4X4
2021
FORD
F-150
-
Fire -EMS
2648
MEDIC
2013
INTNAVISTAR
TERRASTARS
305,000
Fire -EMS
2647
MEDIC
2013
INTNAVISTAR
TERRASTARS
305,000
Fire -EMS
2646
MEDIC
2013
INTNAVISTAR
TERRASTARS
305,000
Fire -EMS
2601
POLARIS RANGER ATV
2018
POLARIS
RANGER
18,000
Fire -EMS
2649
FREIGHTUNER/LEADERAMBULANCE
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
C06x14GW
2,200
Fire -Operations
2402
FIRE ENGINE PUMPER
2010
PIERCE
ARROW XT
721,028
Fire -Operations
2403
FIRE ENGINE PUMPER
2010
PIERCE
ARROW Xr
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 XT 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 XT
800.624
Fire -Operations
2474
FIRE ENGINE PUMPER
2014
PIERCE
ARROW XT
800,624
Fire -Operations
2473
FIRE ENGINE PUMPER
2014
PIERCE
ARROW XT
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 XT
858,962
Fire -Operations
2476
FIRE ENGINE PUMPER
2016
PIERCE
ARROW Xr
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 4)(4
2019
CHEVROLET
TAHOE
55,077
Fire -Operations
2430
DES PUMPER
2005
HME
18 SFO
-
Fire -Operations
2405
FORD EXPEDITION 4X4
2020
FORD
EXPEDITION
Fire -Operations
2477
FIRE ENGINE PUMPER
2021
PIERCE
ARROW XT
Fire -Operations
2478
FIRE ENGINE PUMPER
2021
PIERCE
ARROW XT
-
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
-
FireTmg/Jr Guards
2837
1/2 TON 4X4 TRUCK
2013
FORD
F-150
36,000
Fire Tmg/Jr Guards
2860
FORD F-150 4X4
2017
FORD
F-150
40,000
Total
$ 17,513,550
Source: City of Newport Beach.
%W I LLDAN 49
FIN! NCIAI SERVICES
Exhibit "B"
Fiscal Year 2024-25 Development Impact Fee Schedule
Development Type
Fee Category
Residential
Commercial
Office
Industrial
Feel2,3,5,7
Feel2,3,4,6
Feel2,3,4,6
Feel2,3,4,6
Recreation
$4.70
-
-
-
Police
$1.01
$0.74
$1.14
$0.40
Fire
$1.73
$1.82
$2.79
$0.99
Water
$0.90
$0.91
$0.62
$0.77
Sewer
$0.56
$0.70
$0.51
$0.49
1. All fees are assessed per square foot.
2. The fees shall be adjusted annually for inflation based on the California Construction Cost Index
("CCCI") one year after the effective date of Resolution No. 2024- . The fees shall be paid prior
to issuance of any certificate of occupancy with the total amount owed adjusted for inflation as
provided by state law.
3. If a development project will be constructed in phases, and separate building permits and
certificates of occupancy will be issued for each phase, the fees shall be calculated based on the
development characteristics of the entire development project. Payment of the fees may be made
separately for each phase, provided the amount paid for each phase shall be in proportion that
each phase represents of the total development project. The amount owed for each phase shall be
adjusted for inflation as of the date of payment of the fees for that phase.
4. For nonresidential development projects, the fees shall be assessed based on the gross floor area
(including all ancillary spaces and rooms such as basements, storage rooms, mechanical rooms,
and similar areas) of the development pursuant to Chapter 20.70 (Definitions) of the NBMC. The
fees shall apply to new construction of nonresidential development projects and additions to
existing buildings. In the case of an addition, the fees shall apply to the net increase in floor area
(credit shall be given for the existing use).
5. For residential development projects, the fees shall be assessed based on the gross floor area
(including all ancillary spaces and rooms such as gyms, clubhouses, lobbies, leasing offices and
similar areas) of the development pursuant to Chapter 20.70 (Definitions) of the NBMC. The fees
shall apply to the following types of residential development:
a. New housing projects and subsequent additions constructed on any site identified in Section
20.80.025 (Housing Opportunity Overlay Zoning Districts maps), pursuant to Sections
20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts), or pursuant to General Plan
Policy LU 4.4.
b. New housing projects entitled and constructed in conjunction with a General Plan amendment
or other legislative amendment.
c. New housing projects constructed pursuant to State or Federal streamlining provisions that
allow residential development beyond or in excess of the dwelling unit limits specified in
Sections 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts) and 20.80.025
(Housing Opportunity Overlay Zoning Districts maps) of the NBMC or that are intended to
circumvent local zoning and General Plan requirements related to density or land use type,
unless expressly prohibited by State or Federal law.
6. The following types of nonresidential development are exempt from these fees:
a. Retail sales, cultural institutions, eating and drinking establishments (fast casual, take-out, fast
food, full -service, bars/lounges/nightclubs, wine tasting rooms and similar uses), boat rentals
and sales, and vehicles sales uses, all of which are defined in Section 20.70 (Definitions) of the
NBMC.
b. Visitor Accommodations as defined in Section 20.70 (Definitions) of the NBMC.
c. Short-term lodging units may be subject to development impact fees as a residential use.
d. Temporary uses.
e. Tax exempt educational uses.
f. Tax exempt religious facilities.
g. Tax exempt welfare or public social service facilities.
h. Governmental facilities.
i. Other types of development which the City Council determines by resolution is exempt.
7. The following types of residential development are exempt from these fees:
a. Accessory dwelling units or junior accessory dwelling units.
b. Temporary, transitional or permanent supportive housing and emergency shelters.
C. Gross floor area of a development that is devoted entirely to dwelling units that are affordable
to moderate- or lower -income households. For projects that include a mix of market rate and
affordable dwelling units, only the gross floor area of the affordable dwelling units themselves
shall be exempt (i.e., the gross floor area within the walls of the affordable dwelling unit).
d. Other types of development which the City Council determines by resolution is exempt.
Exhibit "C"
Development Impact Fee Program Guidelines
Credits and refunds shall be provided as follows:
1. No fee credit shall be given for the conversion, redevelopment, replacement, or
adaptive reuse of existing nonresidential buildings to residential uses.
2. No fee credit shall be given for the conversion, redevelopment, replacement, or
adaptive reuse of existing residential buildings to nonresidential uses.
3. For the replacement of a residential use, fee credit shall be provided for existing
residential uses onsite. For the replacement of a nonresidential use, fee credit shall
be provided for the existing nonresidential use.
4. Where a land use proposed for a site is less intensive than the existing land use,
no refund shall be available to the developer.
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2024-83 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 12th day of November, 2024; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Will O'Neill, Mayor Pro Tern Joe Stapleton, Councilmember Brad Avery,
Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember
Lauren Kleiman, Councilmember Erik Weigand
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said
City this 13th day of November, 2024.
a&Z
Leilani I. Brown 1
City Clerk
Newport Beach, California