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Board voted to suspend only three impact fees (correctional facilities, public buildings and solid <br />waste facilities). Those impact fees were suspended from April 1, 2011 until March 31, 2012. Then, <br />on March 13, 2012, the Board extended suspension of the three impact fees for two years until <br />March 31, 2014. <br />In addition to temporarily suspending certain impact fees the County has hired a consultant to update the <br />current impact fee schedule and address various impact fee issues raised by the Board, including fee <br />reduction alternatives. At this time, the conclusion of the fee schedule update process is still several months <br />away. Therefore, unless the three impact fee suspension is extended, the suspension will end before the new <br />fee schedule is adopted. <br />The purpose of this report is to evaluate the merits of extending the suspension, including an analysis of the <br />temporary suspension's impact on building permit activity during the time that the suspension has been <br />in effect. In this case, the permit activity analysis will focus on six ten month periods. Five of those <br />are periods when impact fees were suspended, while the other is a period prior to suspension. <br />ANALYSIS <br />Because the current suspension period ends on March 31, 2014 and because notice to municipalities and <br />advertising requirements necessitates a lead time of 30 days to adopt an impact fee suspension ordinance, the <br />Board needs to make a determination at this time as to whether or not to proceed with extending the <br />suspension If the Board opts to continue the suspension, staff will schedule a public hearing for March 11, <br />2014, and prepare necessary advertisements and notifications. <br />To assess the effectiveness of the impact fee suspension on permit activity, staff analyzed building permit <br />data for five periods when impact fees were suspended and compared those data to the last comparable ten <br />month period prior to the suspension of impact fees. With that information, the Board can assess the <br />success of the temporary suspension of impact fees. <br />As shown in the table below, the number of single family building permits applied for declined in the first <br />suspension period and then remained the same until the last two suspension periods which increased <br />significantly, mainly due to improving economic conditions. The amount of commercial building permits <br />decreased compared to the period prior to the suspension. <br />* Period prior to suspension <br />** Includes tenant build outs and alterations in addition to new construction <br />F:\Community Development\Impact Fee\2014- IF Study\BCC staff report for Authorization to extend Temp Susp CF feb 4, 2014 BCC.doc <br />2 <br />174 <br />Time <br />Period <br /># of New <br />Building Permits <br />Applied For <br />S.F. Res. <br /># of New <br />Building Permits <br />Applied For <br />M.F. Res. <br /># of Commercial <br />Building Permits <br />Applied For <br />** <br />April 1, 2008 —January 31, 2009* <br />361 <br />0 <br />34 <br />April 1, 2009 —January 31, 2010 <br />194 <br />0 <br />25 <br />April 1, 2010 —January 31, 2011 <br />197 <br />0 <br />27 <br />April 1, 2011 — January 31, 2012 <br />194 <br />10 <br />24 <br />April 1, 2012 —January 31, 2013 <br />293 <br />0 <br />14 <br />April 1 2013 —January 31, 2014 <br />(estimate) <br />340 <br />1 <br />26 <br />* Period prior to suspension <br />** Includes tenant build outs and alterations in addition to new construction <br />F:\Community Development\Impact Fee\2014- IF Study\BCC staff report for Authorization to extend Temp Susp CF feb 4, 2014 BCC.doc <br />2 <br />174 <br />