Hold public hearing and approve resolution adopting an updated Development Impact Fee nexus study and adopting revised Development Impact Fees for fire facilities on behalf of the Knights Landing Fire Protection District consistent with the nexus study. (No general fund impact) (Lindbo/Sabatini) (Est. Time: Under 5 min)

Hold public hearing and approve resolution adopting an updated Development Impact Fee nexus study and adopting revised Development Impact Fees for fire facilities on behalf of the Knights Landing Fire Protection District consistent with the nexus study.

The Mitigation Fee Act (Gov. Code 66000 et seq.) provides the authority and framework for local agencies to establish such development impact fee programs. The law requires that agencies must study and provide necessary information to support the imposition of fees within the district. In January 2004, the Board of Supervisors adopted a Fire District Development Impact Mitigation Fee Ordinance that authorizes the imposition of fire development impact fees on behalf of the fire protection districts (Yolo County Code Title 3, Chapter 16). 

Future residential and commercial development is projected to impact capital facilities necessary to maintain current levels of fire protection services. The development impact fee program provides necessary funds to mitigate the impacts of new development on fire district capital facilities and equipment. The purpose of the program is to establish a fire mitigation fee that generates the funds necessary to acquire capital facilities and equipment that will maintain current levels of fire protection, emergency medical, and related services necessitated by new development. 

The Knights Landing Fire Protection District (District) retained a consultant, Capitol Public Finance Group, LLC (Capitol PFG), to review its development impact fees and prepare an updated impact fee study (nexus study). Capitol PFG completed the nexus study in August 2023, which analyzed the impact of recent and future construction on the needs of District, evaluated the existing mitigation fee program that was adopted in November 2018, and considered the changes that have occurred in the development community since the 2018 nexus study was completed.  Capitol PFG's nexus study demonstrates the need for an adjustment to the development impact fee due to the increasing amount of development within the District’s boundaries and the rapidly increasing cost of building public facilities. The nexus study recommends a uniform development impact fee of $2.88 per square foot on all new construction to adequately serve new development, as well as construct capital facilities and purchases equipment necessary to maintain the District's current levels of fire protection services. A copy of the nexus study prepared by Capitol PFG is attached (Attachment C). The recommended action is to approve the revised development impact fee for fire facilities through the county's fee resolution (Attachment A). The nexus study was considered by the District's Board of Commissioners on August 14, 2023 and the proposed impact fee revisions were approved with the District's adoption of the necessary resolution (Attachment B). If approved, the revised impact fee will take effect 60 days after adoption of the resolution by the Board of Supervisors. Payment of the impact fee is required prior to the issuance of a building permit. The following tables detail the amount of the District's current impact fees, set in 2018, and lists the proposed impact fees for different categories.



The nexus study further recommends implementing an annual inflationary adjustment based upon a construction cost index, like the Engineering News Record (ENR). The ENR cost index is the accepted industry standard for changes in construction costs and accounts for a number of factors that affect the price of construction, including labor and materials. The proposed resolution (Attachment A) includes a provision authorizing an annual adjustment to the impact fee based in equal proportion to the change (increase or decrease) in the index set forth in the ENR for the San Francisco Bay Region-All Construction.

Staff Recommendation
Staff recommends that the Board hold a public hearing and approve the Resolution (Attachment A) adopting the nexus study prepared by Capitol PFG and adopting the revised fire facilities development impact fee recommended by the nexus study on behalf of the Knights Landing Fire Protection District. 

Staff have collaborated with the Knights Landing Fire Protection District and Office of County Counsel on this item.