Hold a public hearing and approve a resolution adopting an updated nexus study regarding Development Impact Mitigation Fees for fire facilities and adopting revised Development Impact Mitigation Fees on behalf of the Esparto Fire Protection District consistent with the nexus study. (No general fund impact) (Echiburu/Sabatini)

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

The Mitigation Fee Act (Government Code Section 66000 et. seq.) provides the authority and framework for local agencies to establish development impact mitigation fee programs. The law requires that agencies must study and provide necessary information to support the imposition of such fees. 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 (Yolo County Code Sections 3-16.0 et seq.).

The Esparto Fire Protection District (Esparto FPD) provides fire protection, fire prevention, and emergency medical services to the unincorporated communities of Esparto and Capay, as well as portions of unincorporated Yolo County. Future residential and commercial development is projected to impact the 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 impact fee 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 within Esparto FPD.

The Esparto FPD retained an independent consultant, Capitol Public Finance Group (“Capitol PFG”), to review its impact fees based on the current values of all fire equipment and facilities necessary to protect current residents at current service levels. Capitol PFG completed a development impact fee study ("nexus study"), which recommended a development impact fee for fire facilities of $1.48 per square foot of new construction. Imposing the impact fee on a per square foot basis provides for proportionate funding based on the size of the building and the resulting fire response. Implementing the impact fee proposed by the nexus study will allow the Esparto FPD to provide the appropriate facilities, vehicles, and equipment necessary to maintain current service levels. A copy of the nexus study completed by Capitol PFG and approved by the Esparto FPD in October 2022 is attached (Attachment A).

The following table details the amount of the current impact fees (set in 2018) and lists the proposed impact fee for different categories.

On October 13, 2022, the Esparto FPD's Board of Fire Commissioners considered the updated nexus study and adopted Resolution No. 22-04 recommending that the Board of Supervisors adopt the development impact fee study and increase the development impact fees for all development within the boundaries of the Esparto FPD (Attachment B).

The resolution prepared by staff for the Board's consideration at this time would adopt the updated nexus study and adopt the revised development impact fee consistent with the nexus study (Attachment C).  The revised impact fee would take effect 60 days after the resolution is adopted and payment is required prior to the issuance of a building permit, unless the revised fee is a reduction from currently existing fee amounts, which shall take effect immediately.
 

Additionally, the proposed resolution authorizes implementation of an annual inflationary adjustment. Commencing one year from the effective date of the Impact Fee adopted by this Resolution, the impact fee may be adjusted annually in equal proportion to the increase or decrease in the Engineering News-Record Construction, City Cost Index - San Francisco, Construction Cost Index (CCI), as most recently published in the Engineering News-Record, from the preceding calendar year.

Staff is recommending that the Board of Supervisors hold a public hearing and approve a resolution adopting an updated nexus study regarding Development Impact Mitigation Fees for fire facilities and adopting revised Development Impact Mitigation Fees on behalf of the Esparto FPD, consistent with the nexus study. 

Staff has collaborated with the Esparto Fire Protection District and the Office of County Counsel on this item.