Brion and Associates

Urban Economics

Development Impact Fee Nexus Studies and Peer Review

Brion & Associates provides two main types of service-related impact fees, including preparing impact fee nexus studies for cities and counties throughout California and critiquing nexus studies prepared by other consultants. The fee studies can range from park and child care fees to sewer and water fee studies. We have also provided legal technical advice and analysis related to a lawsuit concerning impact fees on the town of Los Banos, California. Impact fees charge new development for their “impact” on public facilities and services such as parks and roads, and must comply with the requirements of the Mitigation Fee Act. Following are two examples of our work in this area.

Park and Recreation Impact Fee Nexus Study
City of Pasadena, California

For the City of Pasadena, Brion & Associates prepared a nexus study for an updated park and recreation impact fee that would ensure that new development paid its fair share of its impact on the city’s park and recreation facilities. While the city is relatively built-out, there is a fair amount of redevelopment and in-fill development occurring, particularly downtown. The new fee program is consistent with the requirements of the Mitigation Fee Act, which requires a nexus between the amount of the fee, and the impact of the development which is charged the fee. The city council approved the park and recreation fee with a request that the fee be levied on a per bedroom basis for residential uses. Because residential land values are so high in Pasadena, the resulting impact fee was fairly high compared to many other communities.

Sewer and Water Fee Peer Review and Critique
City of Modesto, California

Working for the Building Industry Association of Central California (BIACC), Brion & Associates was retained for two specific projects: 1) to review and critique the City of Modesto’s proposed water connection and user fee nexus study, and subsequently, 2) the City of Modesto’s proposed sewer connection fee nexus study.

The City of Modesto embarked on a comprehensive update to its water master plan, and subsequently to its sewer master plan. The first water connection fee study was reviewed by Brion & Associates. We provided the BIACC with detailed comments concerning underlying assumptions about water demand, cost estimates and contingencies issues, and cost allocation issues between new and existing users. While we had several meetings with city staff and other stakeholders, the city generally adopted the proposed water fees as initially proposed. Within a couple of years, the city found that water revenue was not generated as proposed, mostly because demand was “lower” than projected. When the city released its proposed sewer connection fee study, the BIACC also retained us to review these studies. Given the ensuing problems with the water fees and revenues, Modesto was more willing to engage in a useful dialogue about assumptions, demand and options for cost allocation and other issues of fairness. The city subsequently made changes to its sewer master plan, and cost allocations to various users, including the canning industry in Modesto. Sewer fees were adjusted downward from their original proposed levels.

Fiscal Impact Analysis and Mitigation Development Impact Fee Nexus Studies and Peer Review Feasibility Studies Financial Analysis and Financing Plans Case Studies and Impact Assessments Planning and Public Policy Corps 404(b)(1) Permit Economic Analysis "Joanne is a team player who has provided invaluable analysis on several cases involving development impact fees. In a lawsuit challenging the city's adoption of eight fees, Joanne provided essential litigation support that helped me unwind the city's complex web of calculations." ~ Dan Muller, Attorney, Morgan Miller Blair	Urban Economics Development Impact Fee Nexus Studies and Peer Review Brion & Associates provides two main types of service-related impact fees, including preparing impact fee nexus studies for cities and counties throughout California and critiquing nexus studies prepared by other consultants. The fee studies can range from park and child care fees to sewer and water fee studies. We have also provided legal technical advice and analysis related to a lawsuit concerning impact fees on the town of Los Banos, California. Impact fees charge new development for their “impact” on public facilities and services such as parks and roads, and must comply with the requirements of the Mitigation Fee Act. Following are two examples of our work in this area. Park and Recreation Impact Fee Nexus Study City of Pasadena, California For the City of Pasadena, Brion & Associates prepared a nexus study for an updated park and recreation impact fee that would ensure that new development paid its fair share of its impact on the city’s park and recreation facilities. While the city is relatively built-out, there is a fair amount of redevelopment and in-fill development occurring, particularly downtown. The new fee program is consistent with the requirements of the Mitigation Fee Act, which requires a nexus between the amount of the fee, and the impact of the development which is charged the fee. The city council approved the park and recreation fee with a request that the fee be levied on a per bedroom basis for residential uses. Because residential land values are so high in Pasadena, the resulting impact fee was fairly high compared to many other communities. Sewer and Water Fee Peer Review and Critique City of Modesto, California Working for the Building Industry Association of Central California (BIACC), Brion & Associates was retained for two specific projects: 1) to review and critique the City of Modesto’s proposed water connection and user fee nexus study, and subsequently, 2) the City of Modesto’s proposed sewer connection fee nexus study. The City of Modesto embarked on a comprehensive update to its water master plan, and subsequently to its sewer master plan. The first water connection fee study was reviewed by Brion & Associates. We provided the BIACC with detailed comments concerning underlying assumptions about water demand, cost estimates and contingencies issues, and cost allocation issues between new and existing users. While we had several meetings with city staff and other stakeholders, the city generally adopted the proposed water fees as initially proposed. Within a couple of years, the city found that water revenue was not generated as proposed, mostly because demand was “lower” than projected. When the city released its proposed sewer connection fee study, the BIACC also retained us to review these studies. Given the ensuing problems with the water fees and revenues, Modesto was more willing to engage in a useful dialogue about assumptions, demand and options for cost allocation and other issues of fairness. The city subsequently made changes to its sewer master plan, and cost allocations to various users, including the canning industry in Modesto. Sewer fees were adjusted downward from their original proposed levels. Home \| Firm \| Urban Economics \| Childcare & Policy \| Our Clients joanne@brionassociates.com ~ Phone (707) 570-1477

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