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File Number: 15-215 <br />those frontages were considered when calculating the fee. The subject parcel also has an <br />existing building on it, the replacement cost of which was compared to the cost of the <br />proposed new construction to determine the final fee. <br />In 2009, several building permits were issued for work in the existing building on the site. <br />However, the cost of the improvements, when compared to the replacement value of the <br />existing improvements, was less than the 25% threshold and therefore did not trigger any <br />UUF payment at the time. <br />The parcel frontage along Williams Street is 1,585.50 feet, and the parcel frontage along <br />Doolittle Drive is 500 feet, for a total UUF frontage of 2,085.50 feet. Currently, the UUF rate is <br />$341.70 per linear foot of parcel frontage, for a fee of $712,615.35. The Building Department <br />calculated the cost of the proposed building and the replacement value of the existing <br />building. For the new construction, a cost of $57.11 per square foot was used for the 3,500 <br />square foot fire sprinkler installed and conditioned space. A cost of $53.11 per square foot <br />was used for the 157,700 square foot warehouse space, for a total cost of $8,575,332.00. For <br />the existing construction, a cost of $57.11 per square foot was used for the 170,000 square <br />foot fire sprinkler installed and conditioned space, and a cost of $53.11 per square foot was <br />used for the 251,538 square foot warehouse space, for a total replacement cost of <br />$23,067,883.18. Comparing the two, the proposed building cost is 37.17% of the existing <br />buildings replacement value. Therefore, the UUF applied to this project is $264,880.43. <br />DFSI and UUF Fiscal and Project Impacts Analysis <br />Staff does not recommend that the fees discussed in this report be reduced. These fees are <br />restricted for and dedicated to the safe and coordinated development of the City, which <br />benefits investment in San Leandro. The fees provide the necessary funding to cover the <br />costs of upgrading public infrastructure. Therefore, waiving or modifying the fees in question <br />for this appellant would be detrimental to the City because it would greatly restrict the City's <br />ability to fund programs and projects such as the Neighborhood Traffic Calming Program, and <br />utility undergrounding projects already proposed on East 14th Street and Marina Boulevard. <br />In addition, an appeal granting a waiver or a modification to DFSI and UUF fees is <br />unprecedented; staff neither provides nor recommends waivers or modifications as a policy or <br />a practice. The fees were approved and established in accordance with State law. They <br />should be considered reasonable infrastructure investments that provide both extrinsic and <br />intrinsic benefits to appellant and appellant's property. <br />The Development Fee for Street Improvements (DFSI) and Underground Utilities Fees (UUF) <br />are in the City of San Leandro Municipal Codes Chapters 7-11 and 5-3, respectively. <br />Periodically, the fee rates are revisited to determine their viability and the rates are indexed <br />yearly based on Engineering News Record cost data for the San Francisco Bay Area region. <br />This ensures the fees assessed are in-line with construction cost inflation. <br />When compared to neighboring governmental agencies, the traffic impact fees applied to <br />development projects within the City of San Leandro are low. For example, the City of <br />Hayward has a Building Construction, and Supplemental Building Construction and <br />Improvement Tax for Industrial/Warehouse construction of $1.44 per square foot. The City of <br />Pleasanton has a Traffic Development Fee for Industrial construction of between $7.65 and <br />$9.13 per square foot. The City of Berkeley has a Transportation Services Fee for Warehouse <br />City of San Leandro Page 4 Printed on 4114/2015 <br />