HomeMy WebLinkAboutPH 6 BLDG PERMIT FEE 03-07-88 PUBLIC HEARING
,,'%- _2, ':'?'- '88
Inter- Com
DATE: MARCH 7, 1988
TO:
FROM:
SUBJECT:
WILLIAM HUSTON, CITY MANAGER
CHRISTINE SHINGLETON, DIRECTOR OF COHHUNITY DEVELOPMENT
ESTABLISHMENT OF A BUILDING PERMIT FEE PROGRAM TO FUND CERTAIN
II~ROVEMENTS TO SERVE THE EAST TUSTIN SPECIFIC PLAN AREA
RECOI4HENDATION
Tt is recommended that the City Council adopt Resolution No. 88-12, .establishing
a fee program to fund certain improvements in East Tustin.
BACKGROUND
The East Tustin Development Agreement between the City of Tustin and the Zrvine
Company (TIC) authorizes the establishment of a financing mechanism to. finance
TIC's fair share contribution to the costs of the following facilities'
1. 'The expansion of the City's existing Civic Center facility wil~h developer's
contribution to be the lesser of 40% of total construction costs of
expansion or not to exceed $2,000,000, adjusted for inflation.
2. Construction of a fire facility to serve East Tustin and the acquisition of
a new engine pumper at a cost of $1.3 million.
3. Widening of Irvine Boulevard with developer's fair share contribution
determined to be 30% of construction and right-of-way acquisition costs not.
to exceed $300,000, adjusted for inflation.
The City, in conjunction wi th TIC, has considered methods available to finance
the above facilities and has determined that the most equitable means of
financing said improvements would be through a 'fee program, payable upon
issuance of building permits. The requirement to pay fees would apply to any
private development project in the East Tustin Specific Plan Area for which
building permits are applied for. The actual methodology used to calculate how
much a specific project must pay in fees is shown on Exhibits A, B and C
attached to Resolution 88-12.
Christine Shingl~ o /!
Director of Communiti~/Development
CAS: pe f
Resolution No. 88-12
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RESOLUTION NO. 88-12
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF TUSTIN ESTABLISHING A
FEE PROGRAM TO FUND CERTAIN
IMPROVEMENTS TO SERVE THE EAST
TUSTIN SPECIFIC PLAN AREA
WHEREAS, the City of Tustin ("City") and The Irvine
Company ("TIC") entered into the East Tustin Development
Agreement dated November 3, 1986, approved by Ordinance No. 978
adopted November 3, 1986, and effective December 3, 1986 (the
"Development Agreement"); and
WHEREAS, pursuant to the Development Agreement, TIC is
obligated:
(1) to provide funds for the construction of a fire
protection facility to serve the East Tustin area
(which consists of the land which is the subject of
the Development Agreement, Tract No. 12345 and Parcel
No. 84-10321) and the acquisition of a new engine
pumper for that facility, at a total cost not to
exceed 1.3 million dollars in 1986 dollars;
(2) to contribute a fair-share proportion of the funds
required for the widening of Irvine Boulevard, not to
exceed thirty percent (30%) or $300,000.00 adjusted
· for inflation; and
(3) to contribute a fair-share proportion of the costs to
expand the Civic Center f~cilities, not to exceed
forty percent (40%) or S2,000,000.00, adjusted for
changes in construction costs; and
WHEREAS, the Development Agreement provides that the
foregoing TIC obligations may be financed by a program of fees,
payable upon issuance of building permits.
NOW, THEREFORE, the City Council of the City of Tustin
does hereby resolve as follows:
I ·
The City Council finds and determines as follows:
A·
The Development Agreement authorizes the
establishment of a fee program to finance the
following TIC obligations to fund improvements that
will serve the East Tustin Specific Plan Area:
·
Fire protection facility and new engine pumper
at a cost of $1.3 million, in 1986 dollars.
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Thirty percent (30%) of the actual construction
and right-of-way acquisition costs to widen
Irvine Boulevard, not to exceed S3DO,000.00,
adjusted for inflation.
·
Forty percent (40%) of the total construction
cost to expand the Civic Center facilities, not
to exceed $2,000,000.00, adjusted for changes in
construction costs.
B. · The City, in conjunction with TIC, has considered
methods available to finance the foregoing TIC
obligations and has determined that the most
equitable means of funding would be through a program
of fees, payable upon issuance of building permits.
C ·
A Final Environmental Impact Report on the East
Tustin Specific Plan (85-2) was previously certified
on March 17, 1986, and a Final Supplemental
Environmental Impact Report on the East Tustin
Development Agreement was subsequently certified on
October 22, 1986.
II. The East Tustin Specific Plan Final Environmental Impact
Report (85-2) previously certified on March 17, 1986, and
subsequently certified Final Supplemental Environmental
Impact Report on the East Tustin Development Agreement was
considered prior to approval of this project. The subject
project is within the scope of the East Tustin Specific
Plan previously approved: the effect of this project was
examined in EIR 85-2 and the Supplemental EIR and all
feasible mitigation measures and alternatives developed in
EIR 85-2 and in the Supplemental EIR are incorporated into
the project, as applicable. EIR 85-2 and the Supplemental
EIR are therefore determined to be adequate to serve as
the EIR for this project and to satisfy all requirements
of California Environmental Quality Act.
III. Ail private development within the East Tustin Specific
Plan area shall be required to pay fees, prior to the
· issuance of building permits, to fund a fire protection
facility and engine pumper, a pro-rated share of the Costs
to widen Irvine Boulevard and a pro-rated share of costs
of expansion of the City's Civic Center facilities. The
method used for calculating how much a specific project
must pay in fees shall be as shown in Exhibits A, B and C
attached hereto and incorporated herein by reference.
IV. In cases where a developer has bonded or provided surety
for fees due prior to'adoption of this fee resolution, the
Director of Community Development shall adjust the final
fee schedule and the total amount shall be paid to the
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73
City within 30 days of adoption of this resolution.
PASSED'AND ADOPTED by the City Council of the City of Tustin at
a regular meeting on the day of , 1988.
Ronald B. Hoesterey
Mayor
Mary E. Wynn
City Clerk
LEJ:lw:D:2/23/88(12)
3
Resolution No. 88-12
Exhtbtt A
3/7/88
THE DEPARTMENT OF COHHU'NITY DEVELOPf4ENT
EAST TUSTIN SPECIFIC PLAN
AI)MINISTRATIVE PROCEDURES AND REQUIRED
BUILDING PERMIT FEES FOR FINANCING
EXPANSION OF CIVIC CENTER
Purpose
Section 1.118 of the East Tustin Development Agreement between the City of
Tusttn and the Irvine Company ,("Developer") authorizes the establishment of a
financtn9 mechanlsm to finance the Developer's fair share contribution to the
costs of the expansion of the City's existing Civic Center facility to serve the
East Tustln Area whfch developer's contribution is the lesser of 40~ of the
total construction costs of the expansion or not to exceed $2,000,000 adjusted
for inflation.
The purpose of this administrative procedure is to specifically define the
,~ethodology for implementation of the financing method and to ensure that needed
Civic Center facilities to serve development in East Tustin will be provided.
Appllcab11 t t),.
The requirement to pay fees' shall apply to any private development project in
the East Tustin Specific Plan Area for which building permits are applied for.
Payment of Fees
The total amount of fees required for any project pursuant to this
administrative procedure shall be paid up front prior to issuance of any
building permits for the first phase or any phase of any project in East Tustin.
Administrative Procedures for Determination of Fees
The following procedures have been established for implementing a fee system to
finance Developer's contribution to the expansion of the Civic Center:
1. In order to assist in a fair and practical means of distributing
Developer's contribution across the East Tustin Specific Plan area, gross
acreages of the Specific Plan area have been determined by development
phase or sector based on available information as of December 30, 1987.
Preliminary costs for the Civic Center expansion were then generally
distributed to each phase or sector of the East Tustin Specific Plan Area
as shown in Table I.
Admi ni strati ve Procedures
Building Permit Fees for Financing
Expansion of Civic Center
Page Two
2. At a point where actual development parcels are identified and gross
acreage of each development parcel is determined by adoption of a sector
level Tentative Tract Map for specific phases of development, actual fees
for each development project will be assigned and calculated for each
project site and appropriate fees must, be paid prior to issuance of a
building permit based on the following methodology.
Project fees shall be determined by dividing total costs for a phase or
sector as shown on Table I by the actual number of net acres to be
developed in a phase or sector (see Table 2 and 3 examples). This
calculation'will provide a fee estimate per acre which will then need to be
multiplied by the number of acres in a specific builder level project.
Once a preliminary project fee is established utilizing this methodology,
the actual fees shall be adjusted upward to reflect percentage increases in
the Construction Cost Index from November 1987 to November of any year.
This multiplier rate shall be adjusted on an annual basis.
e
If the total amount of fees held by the City at the time the construction
contract for the expansion of the Civic Center is awarded are not
sufficient to pay Developer's contribution, then Developer shall advance to
City such additional funds up to the $2,000,000 as adjusted for increases
or decreases in the costs of construction from November, 1986 to the date
of the construction contract award as may be needed subject to reimbursment
from any such building permit fees subsequently collected.
TABLE I
PRELIMINARY OISTRIBUTION OF
COSTS FOR CIVIC CENTER EXPANSION
EAST TUSTIN SPECIFIC PLAN
OEVELOPMENT
Phase i Gross Acres % of Total Acres 1987 Dollars
Tract 12763 207** 17 $340,000
Tract 13274 129 11 220,000
Phase 2
Tract 12870
440** 36 720,000
Phase 3
Sectors 1-6'*
Total s
443** " 36 720,000
1219'* 100% $2,000,000'
* Actual 1987 estimate of total costs for Civic Center is 6.5 million
** Subtracts public parkland, school sites, and other community facilities
TABLE 2
TRACT IqAP 12763
EAST TUSTIN SPECIFIC PLAN
PROJECT FEES FOR CI¥'!:C CENTER EXPANSI'ON
{I) {II) {III)
Fee Estimate Estimated Fees
Lots Acres Per Acre in 1987 dollars (1) (2)
~--~'-2 19.3~0 $47,744
3 24.353 60,026
4 14.647 36,102
5 9.724 23,968
6 10.300 25,388
11 & 16 13.100 ~ 32,289
12 15.545 38,316
13 13.340 32,881
14 14.573 35,920
15 2.989 7,367
~ '~ $340,001
(1) Acres in column I multiplied by fee estimate of $2,464.82 shown in Column
II.
(2) Figures to be revised annually to reflect annual percentage increases in
the Consumer Price Index.
TRACT 13274
EAST TUSTIN SPECIFIC PLAN
PROJECT FEES FOR CIVIC CENTER EXPANSION
Lots
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(1) (II)
Fee Estimate
Acres Per Acre
(III)
Estimated Fees
in 1987 Dollars (1) & (2)
23.80 $ 51,930
.99 2,160
1.34 2,925
.63 1,375
.71 1,549
.94 2,051
.71 1,549
.32 700
.80 1,745
25.50 55,640
4.18 9,120
.69 1,505
.69 1,505
.69 1,505
.69 1,505
.69 1,505
.69 1,505
2.18 4,756
3.20 6,982
2.48 5,411
1.46 3,185
.47 1,025
2.85 6,220
23.30 50,836
.83 1,811
100.83 ~ $220,000
·
(1) Acres in Column I multiplied by fee estimate of $2,181.89 per acre shown in
Col umn I I
{2) Figures in Column III to be revised annually to reflect annual percentage
increases in the Consumer Price Index
Resolution 88-12
Exhtbit B
3/7/88
THE OEPARll~ENT OF COMI~JNITY DEVELOPMENT
EAST TUSTIN SPECIFIC PLAN
Purpose
ADMINISTRATIVE PROCEDURES AND REQUIRED
BUILDING PERNIT FEES FOR FIRANCING
FIRE PROTECTION FACILITY AND EQUIPMENT
Section 1.10 of the East Tustin Development Agreement between 'the City of Tustin
and the Irvine Company {"Developer") authorizes the establishment of a fee
program, payable upon issuance of building permits, to finance Developer's
obligation to fund the construction of a fire protection facility to serve the
East Tustin Area and the acquisition of a new engine pumper at a cost of $1.3
million in 1986 dollars.
The purpose of this 'administrative procedure is to specifically define the
methodology for implementation of the fee system and to ensure that needed fire
protection facilities and equipment to serve development in East Tustin will be
provided.
Appltcabtl tt~
The requirement to pay fees shall apply to any private ~development project in
the East Tustin Specific Plan Area where building permits are applied for.
Pa)ment of Fees
The total amount of fees required for any project pursuant to this
administrative procedure shall be paid up front prior to issuance of any
building permits for any phase of any project in East Tustin.
A~intstrative Procedures for I~~tnation of Fees
The following procedures have been established for implementing a fee system to
finance fire protection facilties and new engine pumper in East Tustin:
·
In order to assist in a fair and practical means of distributing costs of a
fire protection facility and a new engine pumper across the East Tustin
Specific Plan area, gross acreages of the Specific Plan area have been
determined by development phase or sector based on available information as
of December 30, 1987. Preliminary costs for a fire protection facility and
a new engine pumper were then generally distributed to each phase or sector
of the East. Tustin Specific Plan Area as shown in Table I.
Admi. ni strati ve Procedures
Building Permit Fees for Financing
Fire Protection Facility and Equipment
Page two
2. At a point where actual development parcels are identified and gross
acreage of each development parcel determined by adoption of a sector level
Tentative Tract Map for specific is phases of development, actual fees for
each development project will be assigned and calculated for each project
site'and appropriate fees would have to be paid prior to issuance of a
building permit based on the following methodology.
Project fees shall be determined by dividing total costs for a phase or
sector as shown on Table I by the actual number of net acres to be
developed in a phase or sector (see Table 2 and 3 examples). This
calculation will provide a fee estimate per acre which will then need to be
multiplied by the number of acres in a specific builder level project.
Once a preliminary project fee is established utilizing this methodology,
the actual fees shall be adjusted upward to reflect percentage increases in
the Consumer Price Index (for all urban consumers) from t4ovember 1986 to
November of any year. This multiplier rate shall be adjusted on an annual
basi~. An example 'of the above methodology is shown on Table 2.
If the total amount of fees held by the City at the time the fire
protection facility is needed (as determined by City) are not sufficient to
pay for construction of the facility and acquisition of new engine-pumper,
then the Irvine Company shall advance to City such additional funds as may
be needed subject to reimbursment from any such building permit fees
subsequently col lected.
TABLE I
PRELIMINARY DISTRIBUTION OF
COSTS FOR FIRE PROTECTION
FACILITY AND EQUIPMENT
EAST TUSTIN SPECIFIC PLAN
OEVELOPHENT
Phase I Gross Acres % of Total Acres 1986 Dollars
Tract 12763 207**
Tract 13274 129
17 $221,000
11 143,000
Phase 2
Tract 12870 440** 36 468,000
Phase 3
Sectors 1-6' 443** 36 468,000
Total s 1219'* 100% . $1,300,000
* Actual figures to be refined at later stages of project
** Subtracts public parkland, school sites, and other community facilities
TABLE 2
TRACT HAP 12763
EAST TUSTIN SPECIFIC PLAN
PROJECT FEES FOR FIRE PROTECTION
FACILITY AND EQUIPMENT
Lots
(I) (ii)
Fee Estimate
Acres Per Acre
(III) (IV)
Estimated Fee
Estimated Fees (1) Adjusted through
in 1986 dollars November 1987 (2) & (3).
i & 2 19.370 $31,033 $32,461
3 24.353 39,017 40,812
4 14.647 23,466 24,545
5 9.724 15,579 16,295
6 10.300 16,502 17,261
11 & 16 13.100 20,988 21,953
12 15.545 24,905 26,051
13 13.340 21,372 22,355
14 14.573' 23,348 24,422
15. 2.989 4,790 5,010
137.941 $1602.13 $2~1,000 $231,165
(1) Acres in column I multiplied by fee estimate of $1602.13 is per acre shown in
Column II
(2) Column IV total is estimated fee per acre shown in Column III multiplied by
increase in Consumer Price Index {CPI) since adoption of East Tustin Specific
Plan. The increase in the Consumer Price Index between November 1986 - November
1987 was 4.6%
{3) Figures in Column IV to be revised annually to reflect annual percentage
increases in the Consumer Price Index.
TRACT 13274
EAST TUST[N SPECIFIC PLAN
PRO~]ECT FEES FOR FIRE PROTECTION
FACILITY AND EQUIPMENT
Lots
(1) (II) (III) (IV)
Esti mated Fee
Fee Estimate Estimated Fees Adjusted Through
Acres Per Acre in 1986 Dollars November, 1987 (2)
i ii iii i i
1 23.80 $ 33,754 $ 35,307
2 .99 1,404 1,469
3 1.34 1,900 1,987
4 .63 894 935
5 .71 1,007 1,053
6 .94 1,333 1,394
7 .71 1,007 1,053
8 .32 454 475
9 .80 1,135 1,187
10 25.50 36,165 37,829
11 4.18 5,928 6,200
12 .69 979 1,024
13 .69 979 1,024
14 .69 ' 979 1,024
15 .69 979 1,024
16 .69 979 1,024
17 .69 979 1,024
18 2.18 3,092 3,234
19 3.20 4,538 4,747
20 2.48 3,517 3,679
21 1.46 2,071 2,166
22 .47 667 698
23 2.85 4,042 4,227
24 23.30 33,045 34,565
25 .83 1,177 1,231
100.83 $1418.23 $143,004 $149,580
{1) Acres in Column I multiplied by fee estimate of $1418.23 per acre shown in
Column II
(2) Column II total is estimate fee per acr~ shown in Column III multiplied by
increase in Consunmr Price Index (CPI) since adoption of East Tustin
Specific Plan. The increase in the Consumer Price Index between November
1986 - November 1987 was 4.6%
(3) Figures in Column IV to be revised annually to reflect annual percentage
increases in the Consumer Price Index
Resolution 'No. 88-12
Exhibit C
3/7/88
THE DEPARTNENT OF COI~IUNITY DEVELOPIqENT
EAST TUSTIN SPECIFIC PLAN
ADMINISTRATIVE PROCEDURES FOR COLLECTION OF
BUILDING PERMIT FEES
TO FINANCE WIDENING OF IRVINE BOULEVARD
Purpose
Section 1.11 of the East Tustin Development Agreement between the City of Tustin
and the Irvine Company ("Developer") authorizes the establishment of a fee
program, payable upon issuance of building permits, to finance Developer's fair
share contribution of the widening of Irvine Boulevard. Developer's fair share
contribution has been determined to be 30~; of the actual construction and
right-of-way acquisition costs not to exceed $300,000 adjusted for inflation.
The purpose of this administrative procedure is to specifically define the
methodology for implementation of the fee system.
Applicability
The requirement to pay fees .shall. apply to any private development project in
the East Tustin Specific Plan* Area for which building permits are applied for.
Pa~ent of Fees
The total amount of fees required for any project pursuant to this
administrative procedure shall be paid up front prior to issuance of any
building permits for the first phase or any phase of any project in East Tustin.
Administrative Procedures for Determination of Fees
The following procedures have been established for implementing a fee system to
finance the widening of Irvine Boulevard in East Tustin:
In order to assist in a fair and practical means of distributing costs for
Irvine Boulevard across the East Tustin Specific Plan area, gross acreages
of the Specific Plan area have been determined by development phase or
sector based on available information as of December 30, 1987. Preliminary
1987 costs of Irvine Boulevard widening were determined at $690,000
multiplied by 30~ with the total impact {$207,000) generally distributed to
each phase or sector of the East Tustin Specific Plan Area as shown in
Table I.
Administrative Procedures
Building Permit Fees for Financing
Irvine Boulevard Widening
Page Two
2. At a point where actual development parcels are identified and gross
acreage of each development parcel is determined by adoption of a sector
level Tentative Tract Map for specific phases of development, actual fees
for each development project will be assigned and calculated for each
project site and appropriate fees would have to be paid prior to issuance
of a building permit based on the following methodology.
Project fees shall be determined by dividing total costs for a phase or
sector as shown on Table I by the actual number of net acres to be
developed in a phase or sector (see Table 2 example). This calculation
will provide a fee estimate per acre which will then need to be multiplied
by the number of acres in a specific builder level project. Once a
preliminary project fee is established utilizing this methodology, the
actual fees shall be adjusted upward to reflect percentage increases in the
Consumer Price Index (for all urban consumers) from November 1987 to
November of any future year. This multiplier rate shall be adjusted on an
annual basis. An example of the above methodology is shown on Table 2.
If the total amount of' fees held by City at the time a contract for Irvine
Boulevard widening is awarded is not sufficient to cover the full amount of
the Irvine Company's fair share for the widening of Irvine Boulevard, the
Irvine Company shall pay on demand, prior to or concurrent with the award,
the full amount of its fair share portion of funds (30% of total project
costs not to exceed $300,000 adjusted for inflation). The full amount
shall be determined by subtracting funds availabe to City from outside
sources {FIE., FAU funding) and any funds collected at the time of building
permit issuance as noted in Section 2 above.
TABLE
PRELIMINARY DISTRIBUTION OF COSTS FOR
IRVINE BOULEVARD WIDENING
EAST TUSTIN SPECIFIC PLAN
DEVELO~ENT
Phase 1
Tract 12763
Tract 13274
Phase 2
Tract 12870
Gross Acres
% of Total Acres
207** 17
129 11
440** 36
1987 Dollars *(1)
$ 35,190
22,770
74,520
Phase 3
Sectors 1 - 6* 443**
iii
Total s 1219
36
ioo%
74.520
$207.000
(1) Actual 1987 estimate is $690.000 which may be adjusted
,h~ , Actual figures to be refined at later stages of project
TABLE 2
TRACT PAP 12763
EAST TUSTIN SPECIFIC PLAN
PROJECT FEES FOR
IRVINE BOULEVARD WIDENING
(I) (II) (III)
Fee Estimate Estimated Fees (1)
Lgts Acres Per Acre in 1987 dollars
I & 2 19.370 $ 4,941
3 24.353 6,213
4 14.647 3,736
5 9.724 2,481
6 10.300 2,628
11 & 16 13.100 3,342
12 15.545 3,966
13 13.340 3,403
14 14.573 3,718
15 2.989 763
~ $255.11 '$ 35,191
(1) Acres in column I multiplied by fee estimate of $255.11 shown in Column II
{2) Figures to be revised annually to reflect annual percentage increases in
the consumer price index.
TRACT 13274 _
EAST TUSTIN SPECIFIC PLAN
PROJECT FEES FOR IRVINE BOULEVARD WIDENING
Lots
(1) (II) (III)
Fee Estimate Estimated Fees
Acres Per Acre in 1987 Dollars (1)
i 23.80 $ 5,375
2 .99 224
3 1.34 303
4 .63 142
5 .71 160
6 .94 212
7 .71 - 160
8 .32 72
9 .80 181
10 25.50 5,759
11 4.18 944
12 .69 156
13 .69 156
14 .69 156
15 .69 156
16 .69 156
17 .69 156
18 2.18 492
19 3.20 723
20 2.48 560
21 1.46 330
22 .47 106
· 23 2.85 644
24 23.30 5,,262
25 .83 187
1'0'0'-.'.'.'.'.~ $ 225.83 $ 22.772
(1) Acres in Column I multiplied by fee estimate of $225.83 per acre shown in
Column I I
(2) Figures in Column III to be revised annually to reflect annual percentage
increases in the Consumer Price Index