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CITY COUNCIL AGENDA ITEM NO.23


Meeting Date: November 13, 2001

Subject/Title: Brentwood Development Fees

Submitted by: Engineering: B. Grewal/L. Vargas
Finance: P. Ehler

Approved by: John Stevenson, City Manager

RECOMMENDATION
Approve a Resolution amending Resolution No. 2202 pertaining to the 2001 Development Fee Program, to drop off of the 5-year Capital Improvement Program fee calculations for the construction of roads and parks and return to the buildout calculation for all fee categories, and amending Resolution No. 2366 revising the Master Fee Program, lowering the fees to the buildout calculations in which each unit or development pays its fair share of the infrastructure load from the fees approved by Council on November 28, 2000 and January 9, 2001, as listed in the Fee Chart which is attached and made a part of this Resolution.

Direct staff to return to Council in January of 2002 with a revised fee schedule and fee program based on the new General Plan.

PREVIOUS ACTION
On July 27, 1999, the City Council approved Resolution No. 99-179 adopting the first Development Fee Program incorporating an accelerated fee program for roads and parks based on an aggressive construction program. 

On November 28, 2000, the City Council approved Resolution No. 2202 adopting the City’s 2001 Development Fee Program.

On January 9, 2001, the City Council approved Resolution No. 2220 amending the City’s Development Fee Program to revise Park Fees.

On September 18, 2001, the City Council approved Resolution No. 2366 adopting the 2001/2002 Cost Allocation Plan, which contains the Master Fee Program.

BACKGROUND
In 1999 the City initiated collection of development fees for roads and parks based on an accelerated 5 years Capital Improvement Program. Since that time, the City has utilized those accelerated fees to build 53.5 acres of parks and $21,817,104 worth of roads. The intention of the accelerated program was to bring the development of the infrastructure in line with the buildout of the City. It was basically a catch-up program. The economy has now slowed to the point where the development cannot support these higher fees. Staff is therefore recommending a return to the buildout program in which each unit or development pays its fair share of the infrastructure load, as listed in the attached Fee Chart.

Brentwood has developed a cooperative relationship with the development community over the years. The developers supported our efforts in accelerating the Development Fee in 1999 in order to build the roads and parks necessary to support the community. The development community has voluntarily paid more than their fair share over the last 2 to 3 years to help Brentwood. It is now time to return to the exact “fair share” analysis in order to maintain development at a pace that supports our cash flow needs, and our bond payment requirements.

Staff should then return to Council in January 2002 for a reanalysis of the Development Fee Program, including adjustments for the reduced population at build out which is part of the new General Plan.

Staff should also begin reanalysis of the 5 year CIP (Capital Improvement Program) based on reduced cash flow brought on by the slower economy.

FISCAL IMPACT
The City has previously had to rely on residential building permit activity to support its Capital Improvement Program. The increased commercial activity reduces that dependence, but if the City allows the residential building activity to dwindle to nothing, infrastructure development will suffer. This program is intended to maintain the current high activity levels in infrastructure.

Attachments:
Resolution
Fee Chart

RESOLUTION NO.


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AMENDING THE 2001 DEVELOPMENT FEE PROGRAM TO DROP OFF OF THE 5-YEAR CAPITAL IMPROVEMENT PROGRAM FEE CALCULATIONS FOR THE CONSTRUCTION OF ROADS AND PARKS AND RETURN TO THE BUILDOUT CALCULATION FOR ALL FEE CATEGORIES, AND AMENDING RESOLUTION NO. 2366 TO REVISE THE MASTER FEE PROGRAM


WHEREAS, on July 27, 1999, the City Council approved Resolution No. 99-179 adopting the first Development Fee Program incorporating an accelerate fee program for roads and parks based on an aggressive construction program; and

WHEREAS, on November 28, 2000, the City Council approved Resolution No. 2202 adopting the City’s 2001 Development Fee Program; and

WHEREAS, on January 9, 2001, the City Council approved Resolution No. 2220 amending the City’s 2001 Development Fee Program to revise Park Fees; and

WHEREAS, on September 18, 2001, the City Council approved Resolution No. 2366 adopting the 2001/2002 Cost Allocation Plan, which contains the Master Fee Program; and

WHEREAS, the economy has now slowed to the point where development cannot support these higher fees.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood hereby revises the 2001 Development Fee Program Fees to fund roads and parks facilities by lowering the fees to the buildout calculations in which each unit or development pays its fair share of the infrastructure load from the fees approved by Council on November 28, 2000 and January 9, 2001, as listed in the Fee Chart which is attached and made a part of this Resolution.

BE IT FURTHER RESOLVED that the revised fees will go into effect on November 14, 2001, and all other findings, fees and portions of City Council Resolutions No. 2202 and 2220 remain the same.

BE IT FURTHER RESOLVED that the City’s Master Fee Resolution No. 2366 is hereby amended to revise the fees adopted by this Resolution.

BE IT FURTHER RESOLVED that staff is directed to return to Council in January 2002 with a revised fee schedule and fee program based on the new General Plan.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 13th day of November 2001 by the following vote:

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