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HomeMy WebLinkAboutPW BioMarinAgenda Item No: _ 5. b Meeting Date: September 15, 2014 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Public Works Prepared by:''.__ "Manager Approval:� i Director of Public Works File No.: 16.13.11 SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO WAIVE A PORTION OF THE CONSTRUCTION VEHICLE IMPACT FEE FOR THE BIOMARIN PROJECT. RECOMMENDATION: Authorize the Director of Public Works to waive a portion of the Construction Vehicle Impact Fee (CVIF) for the BioMarin project. BACKGROUND: On January 5, 2004, the San Rafael City Council established a Construction Vehicle Impact Fee by adopting Resolution 11473. At that time, the City hired consultants Hilton Farnkopf and Hodson (HF&H) to develop a method for San Rafael to recoup costs arising from roadway deterioration caused by heavy construction vehicles. HF&H and City staff recommended imposing a Construction Vehicle Impact Fee, calculated at "I.0% of assessed valuation levied on all building permits and inspections", to be utilized for the repair and reconstruction of City roads. The valuation is based on the basic shell of a building. BioMarin is securing space at 791 Lincoln Avenue to install their laboratory facility. This facility utilizes specialty equipment and plumbing, not normally associated with a similarly constructed office building. The additional plumbing, heating and ventilation, and equipment increases the building costs and therefore the Construction Vehicle Impact Fee assessment. Section 5 of Resolution 11473 allows the City Council, on a case by case basis, to grant a waiver of all or a portion of the fees established for the Construction Vehicle Impact Fee. BioMarin has requested that the CVIF be reduced to approximately half the total cost of the construction, which is consistent with other office building costs. ANALYSIS: The estimated cost of BioMarin's laboratory building is $51,000,000. This includes the cost for additional HVAC equipment, plumbing and other laboratory -related infrastructure. We estimate the cost to construct the building shell without the laboratory equipment to be $25,000,000. Basing the fee on the total project cost, in this particular instance, seems exorbitant. The CVIF was established to account for the impact of construction vehicles on City streets. Biomarin's required Iaboratory, plumbing and HVAC systems do not increase construction vehicle trips. Since the cost of the equipment skews the FOR CITY CLERK ONLY File No.: el r /0 Z X14 4-3 . Council Meeting: 9/420/4 Disposition: ����-��Q� ►3g/3- SAN RAFAEL CITY COUNCIL AGENDA REPORT 1 Page: 2 fee for this site, we recommend calculating that fee based on standard office building construction and rather than a laboratory facility. FISCAL EWPACT: The 85,500 square foot BioMarin laboratory will cost approximately $51,000,000 to construct. That figure includes all plumbing and HVAC laboratory systems. A similarly sized office building is estimated to cost $25,500,000 to construct, resulting in an assessment of $255,000 ($25,500,000 x 1% = $255,500). If the construction vehicle impact fee were to be assessed on the total construction amount, a fee of $510,000 would be required ($51,000,000 x 1% = $510,000). ACTION REQUIRED: 1. Adopt the resolution authorizing the Director of Public Works to waive a portion of the Construction Vehicle Impact fee for the BioMarin Laboratory building site. 2. The Council may choose not to waive a portion of the Construction Vehicle Impact fee for this site and require the applicant to pay an amount based on the total cost of construction. Enclosures: - Resolution A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO WAIVE A PORTION OF THE CONSTRUCTION VEHICLE IMPACT FEE FOR THE BIOMARIN PROJECT. WHEREAS, the City adopted Resolution 11473 on January 5, 2004 establishing a Construction Vehicle Impact Fee to be assessed at the time of building permit issuance based on I% of the valuation of the construction, and; WHEREAS, Resolution 11473 allows the City Council to grant a waiver of payment of all or a portion of the fees when it determines that it is in the public interest to do so; and WHEREAS, City staff recommends calculating the Construction Vehicle Impact Fee for the BioMarin Laboratory site at 791 Lincoln Avenue based solely on the valuation of the building; and WHEREAS, City staff recommends excluding laboratory equipment that is not part of the building system from the CVIF calculation because inclusion of that equipment would double the assessment. NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Rafael authorizes the Director of Public Works to reduce the Construction Vehicle Impact Fee to $255,000, which is commensurate with a similarly sized office building, in accordance with the provisions set forth in Resolution 11473. I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City on the I Sth day of September, 2014, by the following vote, to wit: AYES: COUNCILMEMBERS: Colin, Connolly, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Bushey fZsj�aA r . $a r e-�- ESTHER C. BEIRNE, City Clerk File No.: 16.13.11 CITY OF SAN RAFAEL ROUTING SLIP 1 APPROVAL FORM INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OFA CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL 1 AGENCY. SRCC AGENDA ITEM NO. DATE OF MEETING: September 15, 2014 FROM: Nader Mansourian DEPARTMENT: Public Works DATE: September 2, 2014 FILE NO.: 16.13.11 TITLE OF DOCUMENT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO WAIVE A PORTION OF THE CONSTRUCTION VEHICLE IMPACT FEE FOR THE BIOMARIN PROJECT. Department Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL 1 AGENCY AGENDA ITEM: D] 11"4—� City Manager (signature) NOT APPROVED REMARKS: APPROVED AS TO FORM: J City Attorney (signature)