Title
HEARING - Chief Administrative Office recommending the Board consider a request from the Lake Valley Fire Protection District to adopt and authorize the Chair to sign Resolution 089-2026, approving the updated Fire Impact Fee Nexus Study and increasing development impact mitigation fees.
FUNDING: Development Impact Fees.
Body
DISCUSSION / BACKGROUND
The California Mitigation Fee Act (Gov. Code §66000 et seq.) (the “Act”) authorizes local agencies to establish fees that offset the impacts of new development on public facilities, helping ensure service levels are maintained as communities grow. Because individual Special Districts do not have independent authority to impose these fees, the County implements and collects them on each district’s behalf. In accordance with the Act, fee revenues are deposited into separate, dedicated accounts for each district.
The District engaged Ridgeline Municipal Strategies, LLC to prepare a Fire Impact Fee Nexus Study. The study provides the legal and analytical basis for calculating and applying an updated fee to new development within the District. It evaluates the current fee program, considers recent and projected development, assesses how this growth affects District facilities, and documents the need for fee adjustments due to new development, inflation, and rising facility costs. The study identifies the public facilities needed to accommodate expected growth through 2045.
Fire impact fees support one-time public facility costs attributable to new development, enabling the District to serve additional demand while maintaining its existing level of service.
The District’s Fire Impact Fee Program was last updated on April 24, 2018, when the County adopted Resolution 064-2018 approving the 2015 Lake Valley Fire Protection District Fire Impact Fee Nexus Study. No inflationary adjustments have been applied since that time. As a result, the fee increase recommended in the new study is larger than typical. In addition to the lack of Consumer Price Index (CPI)-based adjustments, the rising costs of construction materials, fire apparatus, and essential equipment have further contributed to the higher fees calculated in the updated study. Had the annual CPI adjustments authorized under the existing program been implemented consistently, the overall increase would be significantly smaller. Going forward, staff will work closely with the District to ensure CPI adjustments are applied as needed to keep the program financially sustainable and aligned with current facility and equipment costs. The proposed updated fees are included in Exhibit A to the resolution.
In addition, Assembly Bill 602 (effective January 2022) requires that all nexus studies-whether prepared by cities, counties, or special districts-be updated at least every eight years. This new mandate ensures that impact fee programs remain legally defensible, transparent, and cognizant of evolving service levels and infrastructure needs.
County staff has reviewed the Nexus Study and confirmed that it satisfies the requirements of the Mitigation Fee Act.
The District’s Board of Directors approved the Nexus Study at a public hearing held on March 12, 2026.
Under Government Code §66016.5(a)(7), the adoption of such studies must occur at a public hearing noticed at least 30 days in advance. Notice for today's hearing was published in the Tahoe Daily Tribune on April 17 and April 24, 2026. The Nexus Study was made available for public review beginning April 17, 2026.
If approved by the Board, the revised fees will take effect 60 days after adoption of the resolution. The proposed updated development impact mitigation fees are as follows:
Residential Development
Fee Per Living Area Sq. Ft.
Single Family - $3.35 (Previously $0.98)
Multi-Family - $5.04 (Previously $1.32)
Nonresidental Development
Per Building Sq. Ft.
Retail/Commercial - $6.96 (Previously $1.40)
Office - $5.39 (Previously $1.72)
Industrial - $3.99 (Previously $1.30)
The County and the District have entered into an agreement under which the District agrees to hold the County harmless and defend the County, its officers, employees, and agents against any claims or actions arising from the calculation, imposition, or collection of impact fees on the District’s behalf.
ALTERNATIVES
The Board could choose not to adopt this resolution, and the existing fees would continue in effect.
PRIOR BOARD ACTION
April 24, 2018, Legistar file 18-0583, the Board adopted Resolution 064-2018 approving the District’s Nexus Study and fees.
December 19, 2017, Legistar file 17-1355, the Board adopted Resolution 2017-11 approving the Indemnity Agreement and the collection of fees on behalf of the District.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
Lake Valley Fire Protection District
FINANCIAL IMPACT
There is no fiscal impact on the County. Impact mitigation fees are collected by the County on behalf of the district and held in a separate account. The account balance as of March 18, 2026, is $339,631.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Please email a copy of the fully executed resolution to Tara Stout in the Chief Administrative Office.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Tara Stout, Principal Management Analyst
Chief Administrative Office