La Verne Council adopts updated development-impact fees after nexus study; vote 5-0

La Verne City Council on Nov. 17 voted 5-0 to adopt updated development impact fees recommended by a nexus study and to amend the city’s comprehensive fee schedule, a move city staff said will align fees with current construction costs and local service needs.

Consultants from David Tasek (David Task) & Associates presented the study, telling the council the updated schedule reflects legal requirements under AB 602 and shows the maximum allowable fees by land-use type. Consultant Richard Ruiz described the methodology as a mix of standards-based and plan-based approaches and called the report “completely transparent,” adding, “These are the maximum amounts. You could charge 89 cents, you can charge 59 cents, 49 cents, whatever works for your city.”

The presentation said the city’s portfolio of fees had not been updated in over a decade and recommended annual adjustments tied to the California construction cost index to avoid future “sticker shock.” The study updated fees for police, fire, parks, storm drain and other categories and converted some calculations from per-unit to square-foot bases in response to AB 602.

Councilmembers used the public hearing and question period to press for detail on how the fees apply to accessory dwelling units (ADUs) and how La Verne’s rates compare with nearby cities. The consultant clarified that under state law no development-impact fee is charged for an ADU up to 750 square feet; fees apply only to additional square footage beyond that threshold. Several councilmembers also cautioned that simple cross-city comparisons can be misleading because jurisdictions differ in development capacity and planned capital needs.

Debate focused on the city-administration component of the fee schedule. Councilmembers discussed proposals that would reduce that component from the consultant’s recommended maximum; after exchange and motioning, the council ultimately approved a motion to adopt the maximum allowable fee schedule as presented. Mayor Hepern moved to adopt the rates and Councilmember Crosby seconded; the motion passed unanimously.

The council’s action adopts the consultants’ findings as the legal nexus supporting the fee levels, directs that the updated fees be incorporated into the city’s fee schedule for fiscal year 2025–26, and approves annual adjustments tied to the California construction cost index. The resolution also notes the action is statutorily exempt from CEQA review under cited state guidelines.

What happens next: staff said the new fees will be published on the city website and go into effect for permitting and plan review after the statutorily required waiting period following adoption. City staff and the consultants emphasized the council may set fees below the maximum in future cases and can negotiate with developers through development agreements on a case-by-case basis.

Key takeaways: the city now has a defensible, updated nexus study and an updated fee schedule designed to keep pace with construction-cost inflation; ADUs under 750 square feet remain exempt from fees; and the council chose to adopt the consultant’s maximum allowable fee levels after questioning and debate.