Quadrangle Fairfield Inn and Suites Impact Fee Appeal Orange County BCC October 20, 2015

Presentation Outline  Background  Project History  Staff Analysis  Summary  Recommended Action

Background  Impact Fees assessed at permit issuance – Projects change during review – Discourages incomplete or inaccurate submittals – Allows staff to complete technical review  Impact fees can be deferred for projects over $1M in construction

Background  Last major update of transportation impact fees in 2011  Passed ordinance on February 12, 2013  BCC decision to keep fees approximately at current levels (42%)  Set temporary 25% reduction to expire on August 16, 2014 (56%)  BCC provided 3½ month extension to December 1, 2014

Background  Notice of fee increase – In ordinance – Website page – Sign in lobby (1 st and 2 nd floor) – Sign at cashier window – Additional BCC discussions and hearings in Aug/Sept 2014

Project History 2014 IF Increase Dec 1, 2014 Orig. Increase Aug 15, 2014 Plans approved Jan 6, 2015 Building Plans submitted May 30, This ProjectTypical Project Days to approvals 238 days171 days # Of reviews 43 This Project Days to approvals 238 days # Of reviews 4

Project History 2014 IF Increase Dec 1, 2014 Orig. Increase Aug 15, Plans approved Jan 6, 2015 Building Plans submitted May 30, 2014 Revised Plans submitted Sept 8, 2014 Revised Plans submitted Nov 7, 2014 Revised Plans submitted Dec 22, 2014 Review Time Time to resubmit Layer 1 (initial) 3269 Layer Layer Layer 4 (final) 16NA

Project History DRC Approved DP Mar 12, IF Increase Dec 1, 2014 Orig. Increase Aug 15, 2014 Revised DP submitted Feb 4, 2014 DRC comments on DP Sept 20, Plans approved Jan 6, 2015 Building Plans submitted May 30, 2014

Staff Analysis  Unlikely to get approval before fee increase – Initial submittal allowed only 77 days for review/approval – Missed increase by 37 days  Unresolved issues on multiple submittals – Structural drawings and Threshold Inspection Plans were not properly signed as required by FS – Fire rated penetration details were not exact copies from U.L. – Smoke detection systems control details missing

Staff Analysis  If refund approved, every project approved could request a potential refund  155 permits issued between Dec. 1, 2014 and Jan 23, 2015  Transportation Impact Fee Assessments – Current (56%) = $1,978/room x 112 = $221,536 – Previous Rate (42%) = $1,483/room x 112 = $166,096 – Difference = $221,536 - $166,096 = $55,440

Summary  The Fairfield Inn and Suites was a complicated project review  Project delays were not caused by County staff  The Transportation Impact Fee increase was well noticed by County  Refund of increase in transportation impact fees would set precedent

Recommended Action  Uphold the August 12, 2015 decision of the Development Review Committee to deny a request to apply the transportation impact fee rate that was in effect prior to December 1, 2014 in lieu of the current transportation impact fee rate for the construction of a 112- room hotel on 2.15 acres. District 5