Discussion and possible action on any and all matters regarding the TischlerBise Proposal for Development Fee Study under A.R.S. §9-463.05. (Jose A. Guzman, Director of Development Services)

A.R.S. §9-463.05 (D)(3) requires cities to update the land use assumptions and infrastructure improvement plans every five (5) years. The last San Luis Land Use Assumptions and Infrastructure Improvements Plan was updated in July 2019.  The studies to produce these documents take time and must be in place to make statutory deadlines for public hearings. 

Land Use Assumptions and Infrastructure Improvement Plans are the basis for charging development fees.  Development fees are the fees in the city building applications that are to help defray the costs of infrastructure related to growth. Under A.R.S. § 9-463.05(D)(3), qualified professionals using generally accepted engineering and planning practices must develop these studies.  Under A.R.S. §9-463.05 (E) the infrastructure improvements plan must include:

1. A description of the existing necessary public services in the service area and the costs to upgrade, update, improve, expand, correct or replace those necessary public services to meet existing needs and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be prepared by qualified professionals licensed in this state, as applicable.
    
2. An analysis of the total capacity, the level of current usage and commitments for usage of capacity of the existing necessary public services, which shall be prepared by qualified professionals licensed in this state, as applicable.
    
3. A description of all or the parts of the necessary public services or facility expansions and their costs necessitated by and attributable to development in the service area based on the approved land use assumptions, including a forecast of the costs of infrastructure, improvements, real property, financing, engineering and architectural services, which shall be prepared by qualified professionals licensed in this state, as applicable.
    
4. A table establishing the specific level or quantity of use, consumption, generation or discharge of a service unit for each category of necessary public services or facility expansions and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial and industrial.
    
5. The total number of projected service units necessitated by and attributable to new development in the service area based on the approved land use assumptions and calculated pursuant to generally accepted engineering and planning criteria.
    
6. The projected demand for necessary public services or facility expansions required by new service units for a period not to exceed ten years.
    
7. A forecast of revenues generated by new service units other than development fees, which shall include estimated state-shared revenue, highway users revenue, federal revenue, ad valorem property taxes, construction contracting or similar excise taxes and the capital recovery portion of utility fees attributable to development based on the approved land use assumptions, and a plan to include these contributions in determining the extent of the burden imposed by the development as required in subsection B, paragraph 12 of this section.

Staff is recommending TischlerBise do the study.  They are familiar with San Luis, having done the study in 2014 and 2019. For this reason, staff requests the City Council's approval and that formal bidding be waived as is allowed under San Luis City Code-Purchasing §3.05.010 (F). TischlerBise's Proposal is for $74,720.00.