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Closed Session Desk Item.Item #1 - TIFPREPARED BY: Wendy Wood, Town Clerk Reviewed by: Town Manager 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS SPECIAL COUNCIL AGENDA MEETING DATE: 04/02/2024 ITEM NO: 1DESK ITEM DATE: April 2, 2024 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant Exposure To Litigation Pursuant to Subdivision (d) of Government Code Section 54956.9: 1 case (1/16/24 Desk Item with email regarding adequacy of transportation impact fee nexus study). REMARKS: Attachment 1 contains public comment received before 11:00 a.m. on Tuesday, April 2, 2024. Attachment Received with the Addendum: 1.Public Comment received before 11:00 a.m. on Tuesday, April 2, 2024. This Page Intentionally Left Blank From:Laurel Prevetti To:Wendy Wood; Nicolle Burnham Cc:Gabrielle Whelan Subject:Fwd: Special Meeting - April 2, 2024 Date:Tuesday, April 2, 2024 8:25:59 AM Attachments:Transportation-Impact-Fee-Justification-Study.pdf Desk item, thank you Get Outlook for iOS From: Phil Koen Sent: Tuesday, April 2, 2024 8:22 AM To: Mary Badame <MBadame@losgatosca.gov>; Matthew Hudes <MHudes@losgatosca.gov>; Rob Rennie <RRennie@losgatosca.gov>; Rob Moore <RMoore@losgatosca.gov>; Maria Ristow <MRistow@losgatosca.gov> Cc: Gabrielle Whelan <GWhelan@losgatosca.gov>; Laurel Prevetti <LPrevetti@losgatosca.gov>; Rick Van Hoesen Subject: Special Meeting - April 2, 2024 [EXTERNAL SENDER] Dear Honorable Mayor and Council Members, In reviewing the agenda for the Special Meeting, I noted David Taussig of David Taussig and Associates would be attending. I have attached a copy of a TIF analysis they did for the City of Paso Robles. If you look at Table 4-1 of the report, they correctly allocated the facility cost to new development. Exhibit C of the report shows the magnitude of the allocation. This is the critical flaw in the Town’s Nexus Study in that DKS failed to fairly allocate the infrastructure cost to new development. There is no question the Nexus Study is inconsistent with Mitigation Fee Act. Given the amount of new development planned within the Town, I am concerned that unless the ATTACHMENT 1 Town rescinds the actions taken on January 16 and revises the nexus study to fairly allocate the infrastructure cost to new development, the Town is exposed to potential litigation from any developers having to pay the new TIF. I am sure Mr. Jarvis can confirm this risk. It is unfortunate the Town Council finds itself in this position, but there is time to correct this mistake. In addition to rescinding the actions taken on January 16, 2024, the Town Council should seek to reclaim all fees paid to DKS. The Town should never pay a consultant for work that fails to fully comply with State Law and fails a reasonable expectation of professional and complete work. Given the failings of the Housing Element consultant, this is a major issue with residents and cannot go unaddressed. This council has a fiduciary duty to residents to be stewards of the Town’s resources. It maybe embarrassing to some members of the Town Council to take this action, but it is the right thing to do. Thank you for receiving these comments. Phil Koen A. B. TRANSPORTATION IMPACT FEE JUSTIFICATION STUDY CITY OF PASO ROBLES JANUARY 25, 2019 Prepared by: DAVID TAUSSIG & ASSOCIATES, INC. 5000 BIRCH STREET, SUITE 6000 NEWPORT BEACH, CALIFORNIA 92660 (800)969-4382 ASSOCIATES, INC. Public Finance Public Private Partnerships Urban Economics TAUSSIG Newport Beach Riverside San Francisco San Jose Dallas DAVID & CC Resolution 19-017 Page 13 of 152 EXHIBIT "C" TO RESOLUTION 19-017 TABLE OF CONTENTS SECTION PAGE EXECUTIVE SUMMARY ............................................................................................................ I I. INTRODUCTION .............................................................................................................. 1 II. LEGAL REQUIREMENTS TO JUSTIFY DEVELOPMENT IMPACT FEES ..................................... 3 III. DEMOGRAPHICS ............................................................................................................ 7 IV. THE NEEDS LIST ............................................................................................................ 10 V. METHODOLGY UTILIZED TO CALCULATE FACILITIES IMPACT FEE .................................... 13 VI. SUMMARY OF FEES ...................................................................................................... 23 APPENDIX A FEE DERIVATION WORKSHEETS APPENDIX B DEPARTMENT CONTACT LIST CC Resolution 19-017 Page 14 of 152 City of Paso Robles Page i Development Impact Fee Justification Study January 24, 2019 EXECUTIVE SUMMARY In order to adequately plan for new development and identify the public facilities and costs associated with mitigating the direct and cumulative impacts of new development, David Taussig & Associates, Inc. (“DTA”) was retained by the City of Paso Robles (the “City”) to update the existing impact fee program by preparing an updated AB 1600 Fee Justification Study (the “Fee Study”). The Fee Study is intended to comply with Section 66000 et. seq. of the Government Code, which was enacted by the State of California in 1987, by identifying additional public facilities required by new development (“Future Facilities”) and determining the level of fees that may be imposed to pay the costs of the Future Facilities. Specifically, this Fee Study is limited to transportation impact fees to pay for Future Facilities needed to meet the needs of new development over the planning horizon through 2045 (the “TIF Program”). The Future Facilities and associated construction costs are identified in the Needs List, which is included in Section IV of the Fee Study. A description of the methodology used to calculate the fees is included in Section V. All new development may be required to pay its “fair share” of the cost of the new infrastructure through the development fee program. ORGANIZATION OF THE REPORT Section I of this report provides an introduction to the study including a brief description of City surroundings, and background information on development impact fee financing. Section II provides an overview of the legal requirements for implementing and imposing the TIF amounts identified in the Fee Study. Section III includes a discussion of projected new development and demand variables, i.e. average daily trips (“ADTs”), assuming current growth trends in housing, hospitality, commercial, and industrial development based on data provided by the City. Section IV includes a description of the Needs List, which identifies the facilities needed to serve new development over the development horizon through 2045 that are eligible for funding by the TIF Program. The Needs List provides the total estimated facilities costs, offsetting revenues, net costs to the City and costs allocated to new development for all facilities listed in the Needs List. This list is a compilation of projects and costs identified by the City Community Development Department (“City CDD”). Section V discusses the findings required under the Mitigation Fee Act and requirements necessary to be satisfied when establishing, increasing or imposing a fee as a condition of new development, and satisfies the nexus requirements for each facility included as part of this study. Section V also contains the description of the methodology used to determine the fees for the TIF Program. Section VI includes a summary of the proposed fees justified by this Fee Study. Appendix A includes the calculations used to determine the various fee levels. Appendix B provides a list of the City officials responsible for selecting the facilities on the Needs List, as well as contact information for these officials. CC Resolution 19-017 Page 15 of 152 City of Paso Robles Page ii Development Impact Fee Justification Study January 24, 2019 IMPACT FEE METHODOLOGY AND SUMMARY DTA utilized demographic projections derived from the updated Citywide Traffic Demand Model, as of September 2018 (“TDM”) to determine how much development, by Land Use Category, is anticipated within the City by 2045. Notably, based on the distribution of Future Facilities in the City and to more accurately assign future development’s fair share for a number of Future Facilities, the City defined three (3) study areas: Area “A”, Area “B”, and Area “C” (collectively, the “Fee Areas”), shown in Figure 1 below, and provided demographic projections for each. These projections were then compared with existing development Land Use Category information by Fee Area, also derived from the TDM. By assigning Average Daily Trip (“ADT”) data to specific Land Use Categories within each of the Fee Areas, DTA was able to determine future development's fair share of Future Facilities costs on a facility-by-facility basis, as further explained below. Table ES-1 below, summarizes existing and projected development by Land Use Category and Fee Area. CC Resolution 19-017 Page 16 of 152 City of Paso Robles Page iii Development Impact Fee Justification Study January 24, 2019 FIGURE 1 TRANSPORTATION IMPACT FEE - FEE AREAS CC Resolution 19-017 Page 17 of 152 City of Paso Robles Page iv Development Impact Fee Justification Study January 24, 2019 TABLE ES-1 TRANSPORTATION IMPACT FEE – DEMOGRAPHIC ASSUMPTIONS Fee Area Land Use Units Year “A” “B” “C” A+B+C Singe Family Residential1 DU 2017 7,932 5 530 8,467 2045 8,440 5 2,401 10,846 Multi-family Residential2 DU 2017 3,539 125 370 4,034 2045 5,778 125 1,303 7,206 Hotel Rooms 2017 1,180 141 65 1,386 2045 2,169 848 985 4,002 Fuel Stations W/ Convenience Market SF 2017 182,328 16,100 5,905 204,333 2045 198,292 16,100 5,905 220,297 Drive-Thru Food/Beverage Outlets4 SF 2017 22,930 15,000 8,320 46,250 2045 24,938 16,313 9,048 50,299 Commercial3 SF 2017 1,900,991 550,960 161,590 2,613,541 2045 2,789,788 1,250,747 750,862 4,791,397 Office SF 2017 514,965 30,990 127,010 672,965 2045 730,694 50,990 177,010 958,694 Light Industrial SF 2017 1,793,490 1,028,806 2,164,231 4,986,527 2045 2,082,208 1,204,806 4,015,120 7,302,134 Heavy Industrial SF 2017 36,400 0 97,800 134,200 2045 36,400 0 297,800 334,200 Notes: 1. Includes single family and rural residential uses. 2. Includes multi-family and mobile home uses. 3. Includes downtown, regional retail, and neighborhood retail. Office category has been blended into the Commercial land use. 4. DTA assumed that the rate of increase in Drive-Thru Food/Beverage Outlets over the buildout period within a specific Study Area would match the rate applied to the Fuel Stations W/ Convenience Market Land Use within Study Area “A”. *This table was created using the information provided initially by Central Coast Transportation Consulting. The following Land Uses were added as directed by the City of Paso Robles: Gas Stations, Fast Food Outlets. Next, based on the City’s Draft Circulation Element Update prepared by Central Coast Transportation Consultants, dated September 2018 (the “Circulation Element Update”), the Future Facilities and associated costs were identified by the City Community Development Department as being necessary to meet the needs of future development within the City through 2045. These Future Facilities, all of which fully or partially support future development, include roads, bridges, and traffic signals. By being included on the Needs List, these Future Facilities became eligible for funding through the TIF Program. The total cost of the facilities selected for the Needs List by City is $203,396,500. Utilizing data derived from the TDM, DTA was able to compare the difference in ADTs generated by existing development and future development by Fee Area and Land Use CC Resolution 19-017 Page 18 of 152 City of Paso Robles Page v Development Impact Fee Justification Study January 24, 2019 Category, and appropriately assign new development’s fair share of the cost based on the specific traffic impacts associated with each of the Future Facilities. The total fee amounts required to finance new development’s share of the costs of facilities identified in the Needs List are summarized in Table ES-2 below. Fees within this Fee Study reflect the maximum fee levels that may be imposed on new development. TABLE ES-2 TRANSPORTATION IMPACT FEE SUMMARY Land Use Fee Area “A” Fee Area “B” Fee Area “C” Single Family (Per Unit) $2,848 $3,780 $9,773 Multi Family (Per Unit) $1,963 $2,605 $6,735 One Bedroom Units (Per Unit) [1] $1,107 $1,469 $3,798 Studio Units (Per Unit) [1] $738 $979 $2,532 Commercial Lodging Motel/Hotel (Per Room) $1,778 $2,360 $2,449 RV Parks & Campgrounds (Per Space) $1,778 $2,360 $2,449 Commercial (Per Sq. Ft.) $8.27 $10.97 $11.39 Assisted Living (Per Sq. Ft.) [2] $0.94 $1.25 $1.30 Fuel Stations w/ Convenience Market (Per Sq. Ft.) $30.97 $57.13 $61.15 Drive-Thru Food / Beverage Outlets (Per Sq. Ft.) $31.37 $60.39 $64.85 Light Industrial (Per Sq. Ft.) $1.65 $2.19 $2.28 Heavy Industrial (Per Sq. Ft.) $0.66 $0.87 $0.90 [1]Fee based on a reduction of the Multi-Family per unit fee, based on 1.0 person per household (“PPH”) for Studio Units and 1.5 PPH for One Bedroom Units, as compared to the estimated PPH for Multi-Family Units of 2.66. [2] Fee based on a reduction of the Commercial per Sq. Ft. fee, based on 2.50 trips per 1,000 Sq. Ft. for Assisted Living. CC Resolution 19-017 Page 19 of 152 City of Paso Robles Page 1 Development Impact Fee Justification Study January 24, 2019 I. INTRODUCTION As background, the City Paso Robles (the “City”), is situated at the Northern San Luis Obispo County–Southern Monterey County line. Approximately midway between Los Angeles and San Francisco, the City is nestled in the coastal mountain range of central California at the southern end of the fertile Salinas River Valley. With a population of over 31,000, the community makes excellent use of its close proximity to mountains, beaches, and deserts, as it boasts a unique climate suitable for growing a variety of crops. Previously known as the “Almond City,” the City has since reinvented itself by cultivating its own niche in the wine-growing industry. Offering the charm of a rural community with all the amenities of family life, including attractive and affordable housing, the City also understands the importance of staying relevant and has thus placed a high priority on maintaining ample City services, state-of-the-art recreational facilities, easy access retail shopping, excellent public schools, and safe neighborhoods. In order to adequately plan for new development over the planning horizon through 2045 and identify the public facilities and costs associated with mitigating the direct and cumulative impacts of new development, David Taussig & Associates, Inc. (“DTA”) was retained by the City to update the existing impact fee program by preparing a new AB 1600 Fee Justification Study (the “Fee Study”). The need for this Fee Study is driven by changes in demographics, facility requirements, and time inflated facility costs. Notably, this Fee Study is limited to transportation impact fees (“TIFs”) to pay for Future Facilities needed to meet the needs of new development over the planning horizon through 2045 (the “TIF Program”). The Fee Study is intended to comply with Section 66000 et. seq. of the Government Code, which was enacted by the State of California in 1987, by identifying additional public facilities required by new development (“Future Facilities”) and determining the level of fees that may be imposed to pay the costs of the Future Facilities. Fee amounts have been determined that will finance facilities at levels identified by various City departments as being necessary to meet the needs of new development over the planning horizon through 2045. The Future Facilities and associated construction costs are identified in the Needs List, which is included in Section IV of the Fee Study. All new development may be required to pay its “fair share” of the cost of the new infrastructure through the development fee program. Currently the City expects to generate new residents and workers within the City limits over the planning horizon through 2045. The City will need to expand its services and facilities to accommodate this new growth. The levy of impact fees in conformance with AB 1600 legislation will help finance new transportation projects, which are needed to mitigate the impacts of this expected new growth. The steps followed in the Fee Study include: 1. Demographic Assumptions: Identify future growth that represents the increased demand for facilities. CC Resolution 19-017 Page 20 of 152 City of Paso Robles Page 2 Development Impact Fee Justification Study January 24, 2019 2. Facility Needs and Costs: Identify the amount of public facilities required to support the new development and the costs of such facilities. Facilities costs and the Needs List are discussed in Section IV. 3. Cost Allocation: Allocate costs per average daily trip. 4. Fee Schedule: Calculate the fee per residential unit, per hotel room, or per non- residential square foot. CC Resolution 19-017 Page 21 of 152 City of Paso Robles Page 3 Development Impact Fee Justification Study January 24, 2019 II. LEGAL REQUIREMENTS TO JUSTIFY DEVELOPMENT IMPACT FEES Prior to World War II, development in California was held responsible for very little of the cost of public infrastructure. Public improvements were financed primarily through jurisdictional general funds and utility charges. It was not uncommon during this period for speculators to subdivide tracts of land without providing any public improvements, expecting the closest city to eventually annex a project and provide public improvements and services. Starting in the late 1940s, however, the use of impact fees grew with the increased planning and regulation of new development. During the 1960s and 1970s, the California Courts broadened the right of local government to impose fees on developers for public improvements that were not located on project sites. Beginning in 1978, with the passage of Proposition 13, the reductions in local government revenues available for new infrastructure have resulted in new development being held responsible for a greater share of public improvements, and both the use and levels of impact fees have grown substantially. Higher fee levels were undoubtedly driven in part by a need to offset the decline in funds for infrastructure development from other sources. The levy of impact fees by local governments in California is one authorized method of financing the transportation, transit and related facilities necessary to mitigate the impacts of new development, as the levy of such fees provides funding to maintain an agency's service standard required for an increased service population. A fee is “a monetary exaction, other than a tax or special assessment, which is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project...” (California Government Code, Section 66000). A fee may be levied for each type of capital improvement required for new development, with the payment of the fee occurring prior to the beginning of construction of a dwelling unit or non-residential building (or prior to the expansion of existing buildings of these types). Fees are often levied at final map recordation, issuance of a certificate of occupancy, or more commonly, at building permit issuance. As explained in detail below, the City has identified the need to impose TIFs to pay for transportation infrastructure. A detailed list of required Future Facilities (the “Needs List”) is contained within Section IV herein. The TIFs presented in this Fee Study will finance facilities on the Needs List at levels identified by the City as appropriate to mitigate the impacts of future development through 2045. Upon the adoption of the Fee Study and required legal documents by the City Council, all new development will be required to pay its “fair share” of the cost of facilities on the Needs List through these fees at rate structures set in the adopting ordinance. Section 66000 et seq. of the Government Code mandates that there is a nexus between fees imposed, the use of the fees, and the development projects on which the fees are imposed. Furthermore, there must be a relationship between the amount of the fee and the cost of the improvements. To impose a fee as a condition for a development project, a public agency must do the following: CC Resolution 19-017 Page 22 of 152 City of Paso Robles Page 4 Development Impact Fee Justification Study January 24, 2019  Identify the purpose of the fee.  Identify the use to which the fee is to be applied. If the use is financing public facilities, the facilities must be identified.  Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.  Determine how there is a reasonable relationship between the need for a public facility and the type of development project on which the fee is being imposed. Addressing these items will enable an impact fee to meet the nexus and rough proportionality requirements established by Dolan versus City of Tigard, Koontz versus St. Johns River Management District and other court cases. These findings and the nexus test for the TIFs are presented in Section V of the Fee Study. As mentioned previously, current State financing and fee assessment requirements only allow future development to pay its fair share of facilities’ costs. Any current deficiencies resulting from the needs of existing development must be funded through other sources. Therefore, a key element to establishing legally defensible impact fees is to determine what share of the benefit or cost of a particular improvement can be equitably assigned to existing development, even if that improvement has not yet been constructed. By removing this factor, the true impact of new development can be assessed and equitable fees assigned. A. Purpose of the Fee (Government Code Section 66001(a)(1)) The purpose of the proposed TIF is to fund Future Facilities required as a result of projected development within the City from 2017 through the year 2045. A review of the City's Traffic Demand Model (“TDM”) as further explained in Section III, below, projects the construction of 5,551 single and multi-family units and 5.0 million square feet of various non-residential land uses. The future residents and workers housed within this future development will create an additional demand for transportation facilities that existing facilities alone cannot accommodate. In brief, to mitigate the effects of future development in an orderly manner while maintaining the current quality of life in the City, the facilities on the Needs List (see below) will need to be constructed. The projected direct and cumulative effect of future development has necessitated a TIF Program. Future development will contribute to the need for the Future Facilities, including new roads, bridges, and traffic signals. Without future development, many of the proposed transportation facilities would not be necessary. Future development exclusively drives the need for some of the Future Facilities, while others of these facilities share costs between future and existing development due to the need to cure existing facilities’ deficiencies. The proposed TIFs will be used for the acquisition, CC Resolution 19-017 Page 23 of 152 City of Paso Robles Page 5 Development Impact Fee Justification Study January 24, 2019 installation, and construction of the Future Facilities identified on the Needs Lists to mitigate the direct and cumulative impacts of future development in the City through 2045. The discussion in this section of the Fee Study sets forth the purpose of the impact fees as required by Section 66001(a)(1) of the California Government Code. B. THE USE TO WHICH THE FEE IS TO BE PUT (GOVERNMENT CODE SECTION 66001(A)(2)) The TIFs will be used for the acquisition, installation, and construction of the Future Facilities identified on the Needs List included in Section IV of the Fee Study. The TIF will provide a source of revenue to the City to fund such facilities, which in turn will both preserve the quality of life in the City and protect the health, safety, and welfare of its existing and future residents and employees. The discussion presented in this section of the Fee Study identifies the use to which the fee is to be put as required by Section 66001(a)(2) of the California Government Code. C. DETERMINE THAT THERE IS A REASONABLE RELATIONSHIP BETWEEN THE FEE’S USE AND THE TYPE OF DEVELOPMENT PROJECT UPON WHICH THE FEE IS IMPOSED (BENEFIT RELATIONSHIP) (GOVERNMENT CODE SECTION 66001(A)(3)) The TIFs collected will be used for the construction of Future Facilities within the City. The types of development that will be paying these fees are new residential and non- residential projects within the City between June 1, 2019 and December 31, 2045. This expected development will generate new residents and employees that will increase the burden on existing transportation infrastructure in the form of increased traffic and roadway usage. In order to maintain existing service standards, the fees to be imposed on new development, as recommended in this Fee Study, will ensure that new development contributes its fair share of funds to mitigate the impacts caused by such development. For the foregoing reasons, there is a reasonable relationship between the acquisition, construction, and installation of the facilities on the Needs Lists and new development as required under Section 66001(a)(3) of the Mitigation Fee Act. D. DETERMINE HOW THERE IS A REASONABLE RELATIONSHIP BETWEEN THE NEED FOR THE PUBLIC FACILITY AND THE TYPE OF DEVELOPMENT PROJECT UPON WHICH THE FEE IS IMPOSED (IMPACT RELATIONSHIP) (GOVERNMENT CODE SECTION 66001(A)(4)) As determined by technical analysis using average daily trips (“ADTs”) derived from the TDM, the benefit to each Fee Area and subsequent Land Use Category from the Future Facilities listed in Section IV was calculated so that it would correspond directly to the impact generated by new development. For example, the projected growth of CC Resolution 19-017 Page 24 of 152 City of Paso Robles Page 6 Development Impact Fee Justification Study January 24, 2019 residential homes (“dwelling units”) and the growth of retail, office and industrial development (“square footage”) translate to additional traffic on City streets as reflected by increased ADTs. In order to prevent congestion, streets need to be created or widened and signals need to be installed. All new development within the City, irrespective of location, contributes to the direct and cumulative impacts of development on public facilities and creates the need for new facilities to accommodate growth. Without future development, the facilities on the Needs Lists would not be necessary. For the reasons presented herein and in Section V, there is a reasonable relationship between the need for the public facilities included on the Needs List and all new development within the City as required under Section 66001(a)(4) of the Mitigation Fee Act. E. THE RELATIONSHIP BETWEEN THE AMOUNT OF THE FEE AND THE COST OF THE PUBLIC FACILITIES ATTRIBUTABLE TO THE DEVELOPMENT UPON WHICH THE FEE IS IMPOSED (“ROUGH PROPORTIONALITY” RELATIONSHIP) (GOVERNMENT CODE 66001(A) This Fee Study uses various methodologies to apportion the cost of the Future Facilities to future development according to the magnitude of the impacts that drive the need for these facilities. Fee amounts for the various Land Use Categories are determined by apportioning costs according to their appropriate demand factors, which in this case consist of ADTs. Section V, “Methodology and Fee Calculation,” explains how ADTs were used to determine Future Facilities benefits based on Fee Area and Land Use Category, describes the methodologies utilized for apportioning costs, and presents the calculations that justify the proposed TIFs for each Land Use Category by Fee Area. As set forth in part F below, as well as throughout Section V and Appendix A of the Fee Study, the proposed fee amounts are roughly proportional to the impacts resulting from new development. Thus, there is a reasonable relationship between the amount of the fee and the cost of the facilities. F. AB 1600 NEXUS TEST AND APPORTIONMENT OF FACILITIES COSTS Section 66000 of the Government Code requires that a reasonable relationship exist between the need for public facilities and the type of development on which a fee is imposed. Roads, bridges, and traffic signals benefit residents and employees in providing safe and efficient vehicular access to properties. It has been well documented by transportation engineers that different land uses generate trips at different rates. Therefore, transportation costs are apportioned on the basis of ADTs. Notably, DTA analyzed fees for eight (8) land use categories to acknowledge the difference in impacts resulting from various Land Use Categories. CC Resolution 19-017 Page 25 of 152 City of Paso Robles Page 7 Development Impact Fee Justification Study January 24, 2019 III. DEMOGRAPHICS In order to determine the transportation facilities needed to serve new development as well as establish fee amounts to fund such facilities, the Fee Study must quantify the number of residential dwelling units and retail, office, and industrial square footages for both existing and projected future development. Estimates of existing and future residential units and square footage of commercial development through 2045 were provided by the City through its TDM, which was in turn based on the City's General Plan and the 2018 Circulation Element Update. Table 3-1 below depicts the anticipated growth in residential units and non-residential square footage through 2045, which was utilized by DTA to calculate the amount of the TIFs to be imposed on new development in the City, as described in Section V of this Fee Study. TABLE 3-1 CITY OF PASO ROBLES EXISTING AND FUTURE DEMOGRAPHICS Fee Area Land Use Units Year “A” “B” “C” A+B+C Singe Family Residential1 DU 2017 7,932 5 530 8,467 2045 8,440 5 2,401 10,846 Multi-family Residential2 DU 2017 3,539 125 370 4,034 2045 5,778 125 1,303 7,206 Hotel Rooms 2017 1,180 141 65 1,386 2045 2,169 848 985 4,002 Fuel Stations W/ Convenience Market SF 2017 182,328 16,100 5,905 204,333 2045 198,292 16,100 5,905 220,297 Drive-Thru Food/Beverage Outlets4 SF 2017 22,930 15,000 8,320 46,250 2045 24,938 16,313 9,048 50,299 Commercial3 SF 2017 1,900,991 550,960 161,590 2,613,541 2045 2,789,788 1,250,747 750,862 4,791,397 Office SF 2017 514,965 30,990 127,010 672,965 2045 730,694 50,990 177,010 958,694 Light Industrial SF 2017 1,793,490 1,028,806 2,164,231 4,986,527 2045 2,082,208 1,204,806 4,015,120 7,302,134 Heavy Industrial SF 2017 36,400 0 97,800 134,200 2045 36,400 0 297,800 334,200 Notes: 1. Includes single family and rural residential uses. 2. Includes multi-family and mobile home uses. 3. Includes downtown, regional retail, and neighborhood retail. Office category has been blended into the Commercial land use. 4. DTA assumed that the rate of increase in Drive-Thru Food/Beverage Outlets over the buildout period within a specific Study Area would match the rate applied to the Fuel Stations W/ Convenience Market Land Use within Study Area “A”. *This table was created using the information provided initially by Central Coast Transportation Consulting. The following Land Uses were added as directed by the City of Paso Robles: Gas Stations, Fast Food Outlets. CC Resolution 19-017 Page 26 of 152 City of Paso Robles Page 8 Development Impact Fee Justification Study January 24, 2019 Based on the data from the TDM shown above, DTA categorized developable residential land uses as Single Family and Multi-Family. Developable non-residential land uses within the City’s are categorized as Hotel/RV Park, Commercial, Fuel Station with Convenience Market, Drive- Thru Food and Beverage Outlets, Light Industrial, or Heavy Industrial respectively, details are included in the table below. Based on these designations, DTA established fees for the following eight (8) land use categories to acknowledge the difference in impacts resulting from various land uses and to make the resulting fee program implementable. CC Resolution 19-017 Page 27 of 152 City of Paso Robles Page 9 Development Impact Fee Justification Study January 24, 2019 TABLE 3-2 CITY OF PASO ROBLES DESCRIPTION OF LAND USE CATEGORIES Land Use Classification for Fee Study Definition Single Family Residential Includes single family detached homes, town homes, condominium units, mobile homes, and pre-fabricated homes. Multi-Family Residential Includes buildings comprised of two or more attached dwelling units under common ownership, including apartments. Hotel/RV Park Includes, but is not limited to, buildings used as the following (each as further defined in Table LU-4 of the General Plan): Resort/Lodging Mobile Home Park/Subdivision Commercial Includes, but is not limited to, buildings (exclusive of Drive-Thru Food and Beverage Outlets) used as the following (each as further defined in Table LU-4 of the General Plan): Neighborhood Commercial Office Professional Community Commercial Regional Commercial Commercial Service Fuel Station with Convenience Market Includes, but is not limited to, fuel stations that have a building used as the following (each as further defined in Table LU-4 of the General Plan): Neighborhood Commercial Community Commercial Regional Commercial Drive-Thru Food and Beverage Outlets Includes, but is not limited to, restaurant buildings, with a drive through component, used as the following (each as further defined in Table LU-4 of the General Plan): Neighborhood Commercial Community Commercial Regional Commercial Community Service Light Industrial Includes, but is not limited to, buildings used as the following (each as further defined in Table LU-4 of the General Plan): Business Parks, Manufacturing, fabrication, assembly, research and development, Industrial services, wholesale distribution Convenience commercial uses, particularly those supporting industrial uses Heavy Industrial Includes, but is not limited to, buildings used as the following: Warehousing Airport Hangers Open Sided Structures, Mini-Storage and Self-Storage CC Resolution 19-017 Page 28 of 152 City of Paso Robles Page 10 Development Impact Fee Justification Study January 24, 2019 IV. THE NEEDS LIST Identification of the public facilities to be financed is a critical component of any development impact fee program. In the broadest sense, the purpose of impact fees is to protect the public health, safety, and general welfare by providing for adequate public facilities. “Public Facilities” per Government Code 66000 include “public improvements, public services, and community amenities.” Fees imposed for a public capital facility improvement cannot be used for maintenance or services. Government Code 66000 requires that if impact fees are going to be used to finance public facilities, those facilities must be identified. Identification of the facilities may be made in an applicable general or specific plan, other public documents, or by reference to a Capital Improvement Program (CIP) or Capital Improvement Plan. For purposes of the City's TIF Program, the Needs List is intended to be the official public document identifying the Facilities eligible to be financed, in whole or in part, through the levy of a uniform development fee on future development in the City. Government Code 66000 requires that if impact fees are going to be used to finance public facilities, those facilities must be identified. Identification of the facilities may be made in an applicable general or specific plan, other public documents, or by reference to a Capital Improvement Program (CIP) or Capital Improvement Plan. DTA has worked closely with City staff to develop the list of facilities to be included in the Fee Study ("the Needs List"), which was based on information obtained from three sources:  Circulation Element Update (2018)  Town Center Plan  The Uptown Plan The Needs List is organized by facility element (or type) and includes a cost section consisting of five columns, which are listed in Table 4-1 below: CC Resolution 19-017 Page 29 of 152 City of Paso Robles Page 11 Development Impact Fee Justification Study January 24, 2019 TABLE 4-1 CITY OF PASO ROBLES NEEDS LIST EXPLANATION OF COST SECTION Column Title Contents Source Facilities Costs to City The total estimated facility cost including construction, land acquisition, and equipment (as applicable) allocable to City. City Departments Off-Setting Revenues Any funds on hand that are allocated for a given facility, such as funds from previous DIF programs earmarked for facilities identified on this needs list. This column does not include potential funding from Federal & State sources that cannot be confirmed. Calculated by DTA based on input from City staff Net Costs to City The difference between the Facilities Costs to City and the Off-Setting Revenues (column 1 minus column 2) Calculated by DTA Percent of Costs Allocated to New Development Percentage of facility cost allocated to new development as calculated in Appendix A Calculated by DTA Costs Allocated to New Development Dollar amount representing the roughly proportional impact of new development on the needed facilities. Calculated by DTA Through discussions between DTA, City staff, and meetings with the Housing Constraints and Opportunities Committee, the Needs List has gone through a series of revisions to fine-tune the needs, costs, and methodologies used in allocating the costs for each facility. The Needs List (Table 4-2) identifies those facilities needed to serve future development through 2045, consistent with the Circulation Element Update. DTA categorized the Future Facilities into the following:  Citywide Facilities – Future Facilities that were determined to benefit the entire City  Fee Area “A”, “B”, and “C” Facilities – Future Facilities anticipated to benefit existing and new development in the applicable Fee Area  Other Planned Facilities – Future Facilities for which specific ADT projections were allocated to each Fee Area based on the TDM. CC Resolution 19-017 Page 30 of 152 {1}{2}{3}{4}{5}{6}{7} Facilities Anticipated Percent of Costs Costs Project Costs Off-Setting Funding From Net Costs Allocated to New Allocated to New Policy Background ID Facility Name to City Revenues [1]Other Sources to City Development [2]Development or Objective A. TRANSPORTATION FACILITIES CITY-WIDE FACILITIES 1 $0 $0 $0 $0 36.69%$0 Circulation Element 3 $12,190,000 ($288,620)$0 $11,901,380 36.69%$4,367,029 Circulation Element 3a $1,630,000 ($38,593)$0 $1,591,407 36.69%$583,942 Circulation Element 3c $2,400,000 ($56,824)$0 $2,343,176 36.69%$859,792 Circulation Element 3d $2,400,000 ($56,824)$0 $2,343,176 36.69%$859,792 Circulation Element 4 $460,000 ($10,891)$0 $449,109 36.69%$164,794 Circulation Element 5 $1,870,000 ($44,276)$0 $1,825,724 36.69%$669,922 Circulation Element 9 $10,000,000 ($236,768)$0 $9,763,232 36.69%$3,582,469 Circulation Element 10 $0 $0 $0 $0 36.69%$0 Circulation Element 11 $2,290,000 ($54,220)$0 $2,235,780 36.69%$820,385 Circulation Element 13a $5,000,000 ($118,384)$0 $4,881,616 36.69%$1,791,234 Circulation Element 15 $1,180,000 ($27,939)$0 $1,152,061 36.69%$422,731 Circulation Element 16 $1,960,000 ($46,407)$0 $1,913,593 36.69%$702,164 Circulation Element 17 $2,836,500 ($67,159)$0 $2,769,341 36.69%$1,016,167 Circulation Element 18 $3,900,000 ($92,340)$0 $3,807,660 36.69%$1,397,163 Circulation Element 19 $1,600,000 ($37,883)$0 $1,562,117 36.69%$573,195 Circulation Element 21 $500,000 ($11,838)$0 $488,162 36.69%$179,123 Circulation Element 23 $940,000 ($22,256)$0 $917,744 36.69%$336,752 Council Objective 25 $1,000,000 ($23,677)$0 $976,323 36.69%$358,247 Council Objective 25a $8,000,000 ($189,415)$0 $7,810,585 36.69%$2,865,975 Circulation Element 27 $1,000,000 ($23,677)$0 $976,323 36.69%$358,247 Circulation Element 32 $41,000,000 ($970,749)($26,900,000)$13,129,251 36.69%$4,817,578 Circulation Element 35a $10,000,000 ($236,768)$0 $9,763,232 36.69%$3,582,469 Circulation Element 6 $730,000 ($17,284)$0 $712,716 20.77%$148,005 Circulation Element 7 $320,000 ($7,577)$0 $312,423 20.77%$64,879 Circulation Element 8 $1,160,000 ($27,465)$0 $1,132,535 20.77%$235,186 Circulation Element 20 $5,000,000 ($118,384)$0 $4,881,616 20.77%$1,013,733 Town Centre-Uptown Plan 22 $600,000 ($14,206)$0 $585,794 20.77%$121,648 Uptown Plan 24 $4,000,000 ($94,707)$0 $3,905,293 20.77%$810,987 Town Centre-Uptown Plan 26 $2,000,000 ($47,354)$0 $1,952,646 20.77%$405,493 Town Centre Plan 27 $1,330,000 ($31,490)$0 $1,298,510 20.77%$269,653 Circulation Element 29 $750,000 ($17,758)$0 $732,242 20.77%$152,060 Town Centre Plan 30a $7,300,000 ($172,841)$0 $7,127,159 44.13%$3,145,331 Circulation Element 31 $1,160,000 ($27,465)$0 $1,132,535 44.13%$499,806 Circulation Element 3b $2,800,000 ($66,295)$0 $2,733,705 64.38%$1,760,076 Circulation Element 33a $14,280,000 ($338,105)$0 $13,941,895 77.59%$10,817,401 Circulation Element 33b $1,340,000 ($31,727)$0 $1,308,273 77.59%$1,015,078 Circulation Element 33c $2,560,000 ($60,613)$0 $2,499,387 54.00%$1,349,669 Circulation Element 33d $2,970,000 ($70,320)$0 $2,899,680 54.00%$1,565,827 Circulation Element 33e $1,440,000 ($34,095)$0 $1,405,905 54.00%$759,189 Circulation Element 35 $1,500,000 ($35,515)$0 $1,464,485 77.59%$1,136,282 Circulation Element 2 $25,000,000 ($591,920)$0 $24,408,080 37.58%$9,171,501 Circulation Element 30 Highway 101/46East-Dual Left- 17th Street Ramps Connection Road 46E to Airport Road, bridge over Huer Huero Road Union Rd/Wisteria Lane roundabout Tractor St. / Golden Hill roundabout Huer Huero Bridge Connector Parkway Airport Road - Dry Creek Road Intersection Improvement Dry Creek Road - Warbirds to Prairie Rd. Creston Road - River Road to EŝďůŝĐŬRoad Creston Road - Lana Street Creston Road - Niblick Road to Scott Street intersection (Signal) Niblick / Creston Rd. Intersection widening Creston Road -Myrtlewood to Meadowlark Road Intersection (Signal) Charolais Road - S. River Road Roundabout Union Road - Kleck Road to Golden Hill Road Union Road - Golden Hill Road Roundabout Union Road - Golden Hill Road to East City Limits Spring Street Traffic Signal Coordination 24th Street - Mountain Springs Road 24th Street - Ysabel Avenue to Riverside Avenue 24th Street - St. Railroad Bridge Upgrade 4th Street - Pine Street to Riverside - 101 Ramps (One-way WB undercrossing) Bike Master Plan Facilities (NCE cost estimate in progress) [2] Niblick Road - TDM and optimization improvements FEE AREA A FACILITIES River Oaks Drive - N. River Road Buena Vista Drive - Cuesta College Frontage Buena Vista Drive - Highway 46E Dual Left Turns Spring Street - 1st to 36th Streets (Frontage improvement completion) Vine Street - 32nd to 36th Streets (Street completion) Riverside Ave - 4th Street to Black Oak Drive (Frontage improvement completion) Railroad Street - 10th Street to 14th Street (Frontage improvement completion) Paso Robles Street Off-Ramp roundabout Paso Robles Street FEE AREA B FACILITIES S. Vine Realignment and Bridge Theatre Drive to South City Limits (Widening to 3 lanes) FEE AREA C FACILITIES Tractor St. extension and roundabout Airport Road - Union Road to Sherwood Road with Bridge Airport Road - Sherwood to Linne Sherwood Road - Fontana to Airport Road Sherwood Road - Airport Road to Linne Airport Road / Sherwood Road roundabout Airport Road - Meadowlark Road to Creston Road OTHER PLANNED FACILITIES [3] Union Road - Highway 46E Interchange Highway 101/46W Interchange (City's Allocation)$15,000,000 ($355,152)$0 $14,644,848 10.86%$1,590,370 Circulation Element TOTAL - TRANSPORTATION FACILITIES $203,396,500 ($4,815,781)($26,900,000)$176,496,500 37.59%$66,341,345 CITY OF PASO ROBLES PUBLIC FACILITIES NEEDS LIST THROUGH 2045 ([KLELW& CC Resolution 19-017 Page 31 of 152 City of Paso Robles Page 13 Development Impact Fee Justification Study January 24, 2019 V. METHODOLGY UTILIZED TO CALCULATE FACILITIES IMPACT FEE Pursuant to the nexus requirements of Government Code 66000, a local agency is required to “determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.” It is impossible to accurately determine the impact that a specific new residential unit, hotel project, commercial project, or industrial development will have on existing facilities. Predicting future residents’ or employees’ specific behavioral patterns, park and transportation, and health and welfare requirements is extremely difficult, and would involve numerous assumptions that are subject to substantial variances. Recognizing these limitations, the Legislature drafted AB 1600 to specifically require that a “reasonable” relationship be determined, not a direct cause and effect relationship. There are many methods or ways of calculating fees, but they are all based on determining the cost of needed improvements and assigning those costs equitably to various types of development. Fees for the facilities analyzed in this study have been calculated utilizing an average daily trip (“ADT”) methodology. Table 5-1 below lists existing and projected ADT data, by Fee Area, used throughout Section V. TABLE 5-1 CITY OF PASO ROBLES AVERAGE DAILY TRIPS Facility Type Service Factor Existing ADTs Projected ADTs Total* Citywide Transportation Facilities Average Daily Trips 193,285 112,031 305,315 Fee Area “A” Transportation Facilities Average Daily Trips 189,025 49,541 238,566 Fee Area “B” Transportation Facilities Average Daily Trips 25,591 20,215 45,806 Fee Area “C” Transportation Facilities Average Daily Trips 25,458 46,022 71,481 * Totals may not sum due to rounding. The following sections present the reasonable relationship for benefit, impact, and rough proportionality tests for each fee element (i.e. transportation facilities) and the analysis undertaken to apportion costs for each type public facility on the Needs List. More detailed fee calculation worksheets for each type of facility are included in Appendix A. CC Resolution 19-017 Page 32 of 152 City of Paso Robles Page 14 Development Impact Fee Justification Study January 24, 2019 A. TRANSPORTATION FACILITIES The Circulation Element of the General Plan includes facilities necessary to provide safe and efficient vehicular access throughout the City. In order to meet the transportation demands of new development through 2045, the City updated this list to include various roadway improvements including rights of way, signalization, widening of roads, paving, and bridges as shown in the Needs List. 1. Nexus Requirement of AB 1600 TABLE 5-2 TRANSPORTATION FACILITIES AB 1600 NEXUS TEST Identify Purpose of Fee Transportation Improvements Identify Use of Fee Various roadway improvements including rights of way, signalization, widening of roads, paving, and bridges Demonstrate how there is a reasonable relationship between the need for the public facility, the use of the fee, and the type of development project on which the fee is imposed New residential and non-residential development will generate additional residents and employees who will create additional vehicular and non-vehicular traffic. Bridges and interchanges will have to be constructed to meet the increased demand and provide for city-wide circulation. Traffic signals, interchanges, bridges and roads will have to be improved or extended to meet the increased demand resulting from new development. Thus there is a relationship between new development and the need for new transportation facilities. Fees collected from new development will be used exclusively for transportation facilities on the Needs List. 2. Apportionment of Transportation Facilities Costs Roads, traffic signals, and bridges will benefit residents and employees by providing safe and efficient vehicular access to properties. Road, traffic signals and bridge fees were calculated for each of the eight (8) land use categories based on the number of (“ADTs”) generated by each land use. Total average ADTs were calculated by applying these trip rates to the various dwelling unit counts and non-residential square feet within each Fee Area and Citywide, as identified in the demographics section of this report. The total facilities cost assigned Citywide and to each Fee Area was then divided by the total number of ADTs for that the applicable area to establish a uniform cost per ADT. This unit cost was then applied to the various land uses and their respective trip generation rates to determine the proposed fees. Expected revenue from CC Resolution 19-017 Page 33 of 152 City of Paso Robles Page 15 Development Impact Fee Justification Study January 24, 2019 new development was also calculated as a check, insuring that collected fees match the calculated cost responsibility of new development. Importantly, DTA applied discount factors to the ADT data to account for pass- through trips and diverted trips. As part of the ADT analysis within each Fee Area, DTA relied on pass-through rates published by the Institute of Traffic Engineer’s (“ITE”) for various land uses. Notably, a 33% pass-through rate was assumed for Commercial (i.e. 33% of the ADTs associated with Commercial were not considered new trips). This pass-through rate has been weighted to account for the fact that the Commercial category includes Office, for which there is no pass-through rate. Moreover, a 66% pass-through rate was assumed for Fuel Stations with Convenience Markets, and a 50% pass-through rate was assumed for Drive-Thru Food/Beverage Outlets. When considering the Citywide Future Facilities, DTA assumed larger pass- through rates for Fuel Stations with Convenience Markets and Drive-Thru Food/Beverage Outlets. Essentially, the Citywide Future Facilities include major arterials that provide north/south and east/west access to the City. Therefore, these Land Use Categories will have higher pass-through rates, as locations with such Land Use Categories are much more likely to be pass-through stops on- route to a different destination in the City. Therefore, a pass-through rate of 95% was applied to both Fuel Stations with Convenience Markets and Drive-Thru Food/Beverage Outlets. Once the ADTs for existing and new development in each Fee Area had been determined, the costs for Future Facilities were allocated to that Fee Area based on the Needs List in Section IV. For Future Facilities that have been deemed “local” to each respective Fee Area (i.e. collector streets), 100% of the cost of Future Facilities has been assigned to that Fee Area. This cost has then been allocated between existing development and new development within the respective Fee Area, based on the percentage of build out ADTs for each. Notably, the costs associated with Citywide Future Facilities have also been allocated between existing development and new development Citywide, based on the percentage of build out ADTs. For Future Facilities that are more regional (i.e. interchanges and on/off ramps), DTA relied on data from the TDM to assign a percentage of the cost of such Future Facilities to each Fee Area. Again, this cost was then allocated between existing development and new development within the respective Fee Area, based on the percentage of build out ADTs for each. Finally, for a number of Future Facilities, the City used the TDM to determine specific percentage allocations applicable to new development in each Fee Area. CC Resolution 19-017 Page 34 of 152 City of Paso Robles Page 16 Development Impact Fee Justification Study January 24, 2019 Based on this information, DTA assigned the appropriate percentage of the cost of such Future Facilities to each Fee Area, then allocated 100% of these assigned costs to new development. Importantly, in Fee Area “C”, DTA determined that it was necessary to isolate the impacts of the specific plan developments that are largely residential (i.e. Olsen- Chandler and Beechwood). Traffic impacts for these two Specific Plans were estimated by Central Coast Transportation, specifically related to improvements on Airport Road (south of Hwy 46) and Sherwood Road. Consistent with the methodology discussed in the previous paragraph, DTA applied 100% of the cost of these Future Facilities, allocated to the Fee Area, to new development. However, since both specific plan developments are largely residential with very small commercial components (likely intended to serve only these residential developments), DTA isolated the TIF calculation associated with these Future Facilities to future residential development in Fee Area “C”. The following tables provide a summary of (i) the cost of Future Facilities attributable to each Fee Area, and the percentage allocation between existing and future development. TABLE 5-3 CITY OF PASO ROBLES CITYWIDE Facility Type Total Cost Allocated To Area Basis for Allocation Allocated to New Development Citywide Transportation Facilities $89,728,151 100% Citywide Transportation Network Improvements 36.69% Fee Area “A” Transportation Facilities Fee Area Improvements $15,513,775 100% Local Fee Area Improvements 20.77% Other Planned Facilities $39,052,927 25.13% TDM 20.77% Fee Area “B” Transportation Facilities Fee Area Improvements $1,132,535 100% Local Fee Area Improvements 44.13% Other Planned Facilities $39,052,927 14.5% TDM 44.13% Fee Area “C” Transportation Facilities See Table Below * Totals may not sum due to rounding. CC Resolution 19-017 Page 35 of 152 City of Paso Robles Page 17 Development Impact Fee Justification Study January 24, 2019 TABLE 5-4 CITY OF PASO ROBLES CITYWIDE Facility Type Total Cost Allocated To Area Basis for Allocation Allocated to New Development Fee Area “C” Transportation Facilities Fee Area Improvements $2,733,705 100% Local Fee Area Improvements 35.62% Other Planned Facilities $39,052,927 30.75% TDM 35.62% Other Fee Area Improvements - All Land Uses - Residential $23,519,626 8.6% 62.53% TDM TDM 35.62% 100% * Totals may not sum due to rounding. Fee amounts for each Fee Area to finance the roads, traffic signals, and bridge facilities on the Needs List are presented in Tables 5-5 to 5.9, below. Details regarding the analysis related to transportation facilities are included in Appendix A-1. Importantly, the total TIF associated with each Fee Area will equal to the Citywide TIF, plus the applicable Fee Area TIF. CC Resolution 19-017 Page 36 of 152 City of Paso Robles Page 18 Development Impact Fee Justification Study January 24, 2019 TABLE 5-5 TRANSPORTATION FACILITIES CITYWIDE COMPONENT SUMMARY Land Use Type Trip Generation Rate per Unit / per 1,000 Non-Res SF [1] Future Units / Non-Res SF Total Future ADTs Development Impact Fee per Unit / per 1,000 Non-Res SF Transportation Facilities Costs Financed by Fees Single Family 7.56 2,379 17,985 $2,222 $5,285,625 Multi-Family 5.21 3,172 16,526 $1,531 $4,856,809 Hotel/RV Park 4.72 2,616 12,348 $1,387 $3,628,773 Commercial 21.95 2,463,585 54,065 $6,450 $15,888,933 Fuel Stations w/ Convenience Market 31.21 15,964 498 $9,172 $146,425 Drive-Thru Food/Beverage Outlets 23.55 4,049 95 $6,920 $28,024 Industrial 1.74 200,000 348 $511 $102,273 Total 112,031 $32,924,372 Gross Costs Allocated to Existing Development $56,803,779 Total Gross Transportation Facilities Costs $89,728,151 CC Resolution 19-017 Page 37 of 152 City of Paso Robles Page 19 Development Impact Fee Justification Study January 24, 2019 TABLE 5-6 TRANSPORTATION FACILITIES FEE AREA “A” COMPONENT SUMMARY Land Use Type Trip Generation Rate per Unit / per 1,000 Non-Res SF [1] Future Units / Non-Res SF Total Future ADTs Development Impact Fee per Unit / per 1,000 Non-Res SF Transportation Facilities Costs Financed by Fees Single Family 7.56 508 3,840 $803 $407,700 Multi-Family 5.21 2,239 11,665 $553 $1,238,360 Hotel/RV Park 4.72 989 4,668 $501 $495,557 Commercial 21.95 1,104,526 24,239 $2,330 $2,573,227 Fuel Stations w/ Convenience Market 212.23 15,964 3,388 $22,530 $359,666 Drive-Thru Food/Beverage Outlets 235.48 2,008 473 $24,998 $50,187 Industrial 1.74 0 0 $185 $0 Total 49,541 $5,259,249 Gross Costs Allocated to Existing Development $20,066,574 Total Gross Transportation Facilities Costs $25,325,823 CC Resolution 19-017 Page 38 of 152 City of Paso Robles Page 20 Development Impact Fee Justification Study January 24, 2019 TABLE 5-7 TRANSPORTATION FACILITIES FEE AREA “B” COMPONENT SUMMARY Land Use Type Trip Generation Rate per Unit / per 1,000 Non-Res SF [1] Future Units / Non-Res SF Total Future ADTs Development Impact Fee per Unit / per 1,000 Non-Res SF Transportation Facilities Costs Financed by Fees Single Family 7.56 0 0 $1,121 $0 Multi-Family 5.21 0 0 $773 $0 Hotel/RV Park 4.72 707 3,337 $700 $495,038 Commercial 21.95 719,787 15,796 $3,256 $2,343,302 Fuel Stations w/ Convenience Market 212.23 0 0 $31,483 $0 Drive-Thru Food/Beverage Outlets 235.48 1,313 309 $34,932 $45,878 Industrial 1.74 0 0 $258 $0 Total 20,215 $2,998,836 Gross Costs Allocated to Existing Development $3,796,373 Total Gross Transportation Facilities Costs $6,795,209 CC Resolution 19-017 Page 39 of 152 City of Paso Robles Page 21 Development Impact Fee Justification Study January 24, 2019 TABLE 5-8 TRANSPORTATION FACILITIES FEE AREA “C” COMPONENT SUMMARY Land Use Type Trip Generation Rate per Unit / per 1,000 Non-Res SF [1] Future Units / Non-Res SF Total Future ADTs Development Impact Fee per Unit / per 1,000 Non-Res SF Transportation Facilities Costs Financed by Fees Single Family 7.56 1,871 14,145 $7,623 $14,262,422 Multi-Family 5.21 933 4,861 $5,253 $4,901,365 Hotel/RV Park 4.72 920 4,342 $1,107 $1,018,429 Commercial 21.95 639,272 14,029 $5,147 $3,290,285 Fuel Stations w/ Convenience Market 212.23 0 0 $49,774 $0 Drive-Thru Food/Beverage Outlets 235.48 728 172 $55,226 $40,231 Industrial 1.74 200,000 348 $408 $81,617 Total 46,022 $25,500,012 Gross Costs Allocated to Existing Development $5,970,771 Total Gross Transportation Facilities Costs $31,470,784 The total expected revenues from TIF for Future Facilities are $66,682,470. If development takes place as projected in Section III, the fee amounts presented in Tables 5-9 are expected to finance 38.84% of the net costs of the transportation facilities identified on the Needs List. The remaining 61.16% of the net costs of transportation facilities will be funded through other sources. CC Resolution 19-017 Page 40 of 152 City of Paso Robles Page 22 Development Impact Fee Justification Study January 24, 2019 TABLE 5-9 CITY OF PASO ROBLES CITYWIDE Facility Type Total Cost Cost Funded by Fees Costs Allocated to Existing Development Citywide Transportation Facilities $89,728,151 $32,924,372 $56,803,779 Fee Area “A” Transportation Facilities $15,513,775 $3,221,645 $12,292,130 Fee Area “B” Transportation Facilities $1,132,535 $499,806 $632,729 Fee Area “C” Transportation Facilities $26,253,330 $17,768,249 $8,485,081 Other Planned Facilities $39,052,927 $12,268,398 $26,784,529 Total $171,680,718 $66,682,470 $104,998,248 * Totals may not sum due to rounding. CC Resolution 19-017 Page 41 of 152 City of Paso Robles Page 23 Development Impact Fee Justification Study January 24, 2019 VI. SUMMARY OF FEES The total impact fee amounts to finance new development’s share of the costs of facilities in the Needs Lists are summarized in Table 6-1. TABLE 6-1 DEVELOPMENT IMPACT FEE SUMMARY Land Use Fee Area “A” [1] Fee Area “B” [1] Fee Area “C” [1] Single Family (Per Unit) $2,848 $3,780 $9,773 Multi Family (Per Unit) $1,963 $2,605 $6,735 One Bedroom Units (Per Unit) [1] $1,107 $1,469 $3,798 Studio Units (Per Unit) [1] $738 $979 $2,532 Commercial Lodging Motel/Hotel (Per Room) $1,778 $2,360 $2,449 RV Parks & Campgrounds (Per Space) $1,778 $2,360 $2,449 Commercial (Per Sq. Ft.) $8.27 $10.97 $11.39 Assisted Living (Per Sq. Ft.) [2] $0.94 $1.25 $1.30 Fuel Stations w/ Convenience Market (Per Sq. Ft.) $30.97 $57.13 $61.15 Drive-Thru Food / Beverage Outlets (Per Sq. Ft.) $31.37 $60.39 $64.85 Light Industrial (Per Sq. Ft.) $1.65 $2.19 $2.28 Heavy Industrial (Per Sq. Ft.) $0.66 $0.87 $0.90 [1]Fees derived based on a reduction of the Multi-Family per unit fee, based on 1.0 person per household (“PPH”) for Studio Units and 1.5 PPH for One Bedroom Units, as compared to the estimated PPH for Multi-Family Units of 2.66. [2]Fee derived based on a reduction of the Commercial per Sq. Ft. fee, based on 2.50 trips per 1,000 Sq. Ft. for Assisted Living. CC Resolution 19-017 Page 42 of 152