CDC - Item 4B - Development Impact Fee Justification Study•
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ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
STAFF REPORT
TO: THE HONORABLE CHAIRMAN AND COMMISSIONERS
FROM: OLIVER CHI, EXECUTIVE DIRECTOR PL
DATE: AUGUST 26, 2008
SUBJECT: DEVELOPMENT IMPACT FEE JUSTIFICATION STUDY
SUMMARY
In 1987, the California Legislature adopted Assembly Bill 1600, or the Mitigation Fee Act, that
established a uniform process for formulating, adopting, imposing, collecting, accounting for,
and protesting developer impact fees. Impact fees are charges assessed by local governments
against new development projects that attempt to recover the cost incurred by govemment in
providing the public facilities required to serve the new development.
Impact fees are only used to fund facilities, such as roads, schools, and parks, that are directly
associated with the new development. They may be used to pay the proportionate share of the
cost of public facilities that benefit the new development; however, impact fees cannot be used
to correct existing deficiencies in public facilities.
Given that the City is in the process of updating its General Plan, proposals were solicited for a
Development Impact Fee Study in the interest of establishing a development impact fee
program for streets and transportation, general government, law enforcement, libraries, parks,
wastewater treatment, and public art in the City of Rosemead. In completing such a study, all
projects and needs must be identified and a methodology developed with a nexus justifying the
fees that are established in compliance with AB 1600.
Staff Recommendation
Staff recommends that the City Council authorize the City Manager to enter into a professional
services agreement with Willdan Financial Services to provide a Development Impact Fee Study
for the City of Rosemead, in accordance with the requirements of the Mitigation Fee Act
(California Government Code sections 66000 to 66025) in the amount of $50,860.
ANALYSIS
Development impact fees are charges assessed to new development projects to help offset the
costs of providing the necessary public services to serve the new development, i.e., streets and
transportation, general government, law enforcement, libraries, parks, wastewater treatment,
and public art.
APPROVED FOR CITY COUNCIL AGENDA: 15 .
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Community Development Commission
August 26, 2008
Page 2 of 2
Staff solicited proposals from seven (7) firms who, at one time, specialized in development
impact fee justification studies. Those firms were:
1. GRC
2. Urban Futures
3. Bureau Veritas
4. Keyser Marston Associates
5. Willdan Financial Services
6. HR&A
7. Revenue Cost Specialists, LLC
Willdan was the only company who continues to offer this type of service and was willing to
submit a proposal. Willdan Financial Services is one of California's leading firms for
development impact fee programs. Willdan's staff has been key participants in providing impact
fee analyses for over 50 public agencies across California, including experience with numerous
public agencies in Los Angeles County and the San Gabriel Valley. The cost to have this study
prepared is $50,860.
FISCAL ANALYSIS
Because many of the proposed projects are directly in or near the City's redevelopment project
areas, it is being proposed that the cost for this study be split equally between the Community
Development Commission ($25,430) and the General Fund ($25,430).
Funds were budgeted in the FY 2008-09 General City and CDC budgets to pay for this study.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Michelle G. Ramirez
Economic Development Administrator
Suiai
BriAssistant City Manager
Attachment A - Willdan Financial Services Proposal