HomeMy WebLinkAboutResolution 2008-096 N.C.S. 05/19/2008Resolution No. 2008-096 N.C.S.
of the City of Petaluma, California
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
UPDATING THE WATER CAPACITY FEE FOR NEW DEVELOPMENT
IN THE CITY OF PETALUMA AND SUPERSEDING SUCH FEE
UPDATED BY RESOLUTION N0.91-18 N.C.S. ADOPTED .IANUARY 22, 1991
WHEREAS, the City of Petaluma General Plan 2025 ("General Plan") outlines future
land uses within the City of Petaluma ("City") and applies to a planning area which includes the
City and land outside the City in unincorporated Sonoma County which must also be considered
to properly plan for the City's future; and,
WHEREAS, the General Plan of the City was adopted by the Petaluma City Council
("City Council") on May 19, 2008; and,
WHEREAS, an Environmental Impact Report (hereafter "EIR") was prepared for the
General Plan (State Clearinghouse Number 2004082065) pursuant to the California
Environmental Quality Act ("CEQA") and certified by the City Council on April 7, 2008 by
Resolution No. 058-2008 N.C.S.; and,
WHEREAS, the General Plan area is shown on the land use maps contained in the
General Plan; and,
WHEREAS, the General Plan designates a defined land use for all property within the
City and, based on those uses, calculates the expected number of residents, residential units,
employees, and square footage of nonresidential development that will result if all property in
the City is developed as planned by the year 2025. The General Plan incorporates policies and
programs to mitigate the impacts of such new development, including policies that require new
development to pay for its proportional fair share of the cost of water connections for residential
and nonresidential developments; and,
WHEREAS, Goal 1-G-6 of Chapter 1 of the General Plan provides that the City should
"Maintain a residential growth management system to ensure public infrastructure keeps pace
with growth"; and,
WHEREAS, Policy 1-P-47 of Goal 1-G-6 of Chapter 1 of the General Plan provides that
the City should "Ensure that all new development provides necessary public facilities to support
the development," and includes program (A) which provides that the City should: "Collect
proportionate faire share of long-term infrastructure improvement costs as entitlements are
granted" and program (B): "Initiate design of long term infrastructure improvements in a timely
manner to ensure their completeness coincides with demand"; and,
Resolution No. 2008-096 N.C.S. Yage I
WHEREAS, Goal 8-G-1 of the General Plan provides that the City should "Provide a
safe, reliable, high-quality, economical and sustainable source of water to meet the community's
needs"; and,
WHEREAS, Program (A) of Policy 8-P-4 of Goal 8-G-1 of the General Plan provides
that "The City shall continue to monitor the demand for water for projected growth against actual
use, and ensure that adequate water supply is in place prior to, or in conjunction with, project
entitlements"; and,
WHEREAS, Goal 8-G-7 of the General Plan provides that the City should "Continue to
invest in the City's storage and distribution system to insure reliable delivery of high quality
water to .meet daily and emergency needs"; and,
WHEREAS, Policy 8-P-22 of Goal 8-G-7 of the General Plan provides that the City
should "Invest in the maintenance, repair and replacement of the water utility infrastructure";
and,
WHEREAS, Policy 8-P -26 of Goal 8-G-7 of the General Plan provides that the City
should "Encourage continued development of the City's water supply and distribution system to
meet established system. pressure and fire flow standards (including reservoirs, mains, and
hydrants)"; and,
WHEREAS, the City Council may adopt and impose a water capacity fee to pay for the
maintenance of existing capital assets .and construction of future capital projects to off-set certain
impacts of new development under the authority of Article XI, §§ 5 and 7 of the California
Constitution, Section 66000 of the Government Code ("Mitigation Fee Act"), Section 54 of the
City of Petaluma Charter, and Petaluma Municipal Code Chapter 15.08, including but not limited
to, Petaluma Municipal Code sections 15.08.010 and 15.08.150, collectively and separately; and,
WHEREAS, the City currently imposes water capacity charges to pay for water system
capacity and other associated municipal improvements to off-set certain impacts of new
development, pursuant to Petaluma Municipal Code Chapter 15.08, including but not limited to
Petaluma Municipal Code sections 15.08.010 and 15.08.150, and,
WHEREAS, water capacity charges have been adopted by City of Petaluma Resolution
No. 88-93 N.C.S., adopted March 21, 1988 and further amended by City of Petaluma Resolution
No. 91-18 N.C.S., adopted January 22, 1991; and,
WHEREAS, the City Council of the City of Petaluma adopted a resolution of intent to
amend the water capacity fees for new development on June 19, 2006, by Resolution No. 2006-
120 N.C.S., providing notice of intent to amend the City's water capacity fees upon adoption of
the General Plan to reflect the water demand and supply analysis of the General Plan, and the
facilities, infrastructure, and expanded conservation programs necessary to serve development;
and,
WHEREAS, to plan for anticipated growth under General Plan 2025, the City
Department of Water Resources and Conservation and its consultants have undertaken
engineering and financial studies to determine the necessary infrastructure and expanded water
conservation programs to provide a potable water supply sufficient to serve existing and
Resolution No. 2008-096 N.C.s. Page 2
anticipated development under General Plan 2025, including the Water Conservation Plan
adopted by the City Council on January 28, 2008, by Resolution No. 2008-021 N.C.S.; and,
WHEREAS, Bartle Wells Associates has prepared the City of Petaluma Water and
Wastewater Capacity Fee Study, dated May 2008 ("Report"), on file in the Office of the City
Clerk and hereby made a part of this Resolution by reference; and,
WHEREAS, the Report demonstrates the appropriateness of adopting a fee based on
current estimates of the need for and cost of needed water capacity to accommodate new
development including (1) an evaluation of water capacity currently available;, (2) an estimate of
the increase in the City's service population by the year 2025, the planning horizon of the
General Plan; and (3) the average cost of acquiring adequate water capacity to meet the demands
of the estimated increases in the City's service population by 2025 with respect to residential and
non-residential development projects; and,
WHEREAS, in accordance with Government Code Section 66016, at least fourteen (14)
days prior to the public hearing at which this resolution was adopted, notice of the time and place
of the hearing was mailed to eligible interested parties who filed written requests with the City
for mailed notice of meetings on new or increased fees or service charges; and,
WHEREAS, in accordance with Government Code Section 66016, the Report was
available for public inspection, review, and comment for ten (10) days prior to the public hearing
at which the Council considered the adoption of the Fee; and,
WHEREAS, ten (10) days advance notice ofthe public hearing at which the resolution
was adopted was given by publication in accordance with Government Code Section 6062a; and,
WHEREAS, adoption of this resolution is statutorily exempt from CEQA pursuant to
California Public Resources Code Section 21080(b)(8)(D) and 14 California Code of
Regulations ("CEQA Guidelines")Section 15273 (a)(4) because adoption of fees pursuant to this
resolution involves the establishment, modification, restructuring or approval of fees, as
identified and analyzed in the Report, to meet existing expenses and obtain funds for capital
projects that are necessary to maintain service within existing service areas; and/or as to the
portion of the fees adopted pursuant to this resolution which funds capital projects which were
previously evaluated and analyzed at a program level in the EIR for the General Plan (see
Volume 2, Appendix C, "Water Supply and Demand Analysis," pp. 3-2 through 3-11 and Exhibit
I), no substantial changes have been proposed to the capital projects in connection with this
adoption of fees, and pursuant to CEQA Guidelines Section 15162 and 15168(c)(2), adoption of
that portion of fees adopted pursuant to this resolution is within the scope of the EIR; and,
WHEREAS, it is consistent with applicable General Plan goals, policies, and programs
that the water capacity fees be adjusted to ensure that revenues from the water capacity fees are
sufficient to pay the City's costs of necessary infrastructure, including expanded water
conservation programs, to accommodate growth under the General Plan and changing State and
federal regulations; and,
Resolution No. 2008-096 N.C.S. Page 3
FiNTDiN(:~
WHEREAS, the City Council finds as follows:
A. The purpose of the water capacity fee set forth in this Resolution is to finance
water facilities to reduce the impacts caused by future development in the City. Such facilities
are described in the Report.
B. The water capacity fee collected pursuant to this Resolution shall be used to
finance the water facilities described in the Report and/or alternative facilities in accordance with
this Resolution.
C. After considering the Report,-the testimony received at this noticedpublic
hearing, the agenda statements, the General Plan, the E.I.R., and all correspondence received
(together, "Record"), the City Council approves and adopts the Report and incorporates such
Report herein and further finds that further development in the City will generate the need for the
water facilities described in the Report and that such water facilities are consistent with the
General Plan.
D. The Record establishes:
1. That there is a reasonable relationship between the use of the water
capacity fee set forth in this Resolution (payment for certain listed water facilities) and the type
of development projects on which such fee is imposed in that all development in the City -both
residential and non-residential -generates or contributes to the need for the facilities listed in the
Report; and
2. That there is a reasonable relationship between the need for the facilities
listed in the Report and the type of development projects on which the water capacity fee set
forth in this Resolution is imposed in that new development in the City -both residential and
non-residential -will generate persons who live, work and/or shop in the City and who generate
or contribute to the need for the facilities listed in the Report; and
3. That there is a reasonable relationship between the amount of the water
capacity fee set forth in this Resolution and the cost of the facilities listed in the Report or that
portion of such facilities attributable to the development on which such fee is imposed in that
such fee is calculated based on the total cost of construction of such facilities, the anticipated
demand for water facilities within the City, the anticipated water facility service population in
the City and the percentage by which development within the City contributes to the need for
such facilities; and
4. That in accordance with Government Code Section 66013(a), the cost
estimates set forth in the Report concerning the land and construction costs of the water facilities
listed in the Report are reasonable estimates, and the fees expected to be generated by future
development will not exceed the estimated reasonable cost of such water facilities; and
5. That the method of allocation of the fee set forth in this Resolution to a
particular development bears a fair relationship, and is roughly proportional, to each
development's burden on, and benefits from, the water facilities to be funded by such fee, in that
such fee is calculated based on the water demands new development will generate.
Resolution No. 2008-096 N.C.S. Nage 4
E. The Report is a detailed analysis of how public services will be affected by
development in the City and the water facilities required to accommodate that development.
ADOPTION OF FEE
NOW, THEREFORE, BE IT RESOLVED,
T)efiniti~nS_
a. "Development" shall mean the construction, alteration or addition of any
building or structure, other than by the City, within-the City of Petaluma, and within any areas
served by the City outside the jurisdictional limits of the City.
b. "Director" shall mean the Director of the City Water Resources and
Conservation Department or his/her designee.
c. "Facilities" shall include those facilities that are described in the Report.
"Facilities" shall also include comparable alternative facilities should later changes in projections
of development in the region necessitate construction of such alternative facilities; provided that
the City Council later determines in accordance with applicable law (1) that there is a reasonable
relationship between Development within the City and the need for alternative facilities (2) that
,the alternative facilities are. comparable to the facilities listed in the Report, acid (3) that revenue
from fees charged pursuant to this Resolution will be used only to pay new Development's fair
and proportionate share of the alternative facilities.
d. "Fee" shall mean the charge or charges imposed on Development to fund
the Facilities to ensure that such Development pays its fair share of facilities needs generated by
such Development pursuant to this Resolution and applicable law.
e. "Non-residential User" includes, but is not limited to, any commercial,
industrial or institutional customer.
2. Water Capacity Fee Imposed.
In accordance with Government Code Section 66013, a Water Capacity Fee ("Fee") shall
be imposed and paid at the times, and in the amounts and otherwise apply and be administered as
prescribed in this Resolution on Development in accordance with the following:
a. General. Connection may be made to the City's water system in locations
approved by and subject to the regulations of the City Council, upon paymentto the City of the
fee specified below and other specifications hereinafter indicated.
b. Capacity Fees.
i. New Users. A Fee shall be levied for each new water meter
connecting to the City water system according to the size of the meter as shown in Table 2.1.
Resolution No. 2008-096 N.C.S. Page 5
Table 2.1
Water Capacity Fees
Meter Size (inches) ~ Fee
5/8 $11,299
'/4 11,299
1 (residential) 11,299
1 (non-residential) 18,078
1 '/~ 22,598
2 45,195
3 67,793
4 90,390
6 225,976
>6 Case by case
ii. Capacity Fee on Rebuilding, Remodelin og r Expansion of Existing
Non-Residential User Facilities. In the event of any expansion, remodeling or rebuilding of any
non-residential building, structure, or premises, currently connected to the water system, in a
manner which increases the size of the meter, an additional Fee shall be due. In no instance shall
a refund be granted if the rebuilding, remodeling or expansion of aNon-residential User facility
decreases the size of the building or the meter. The additional Fee for the expansion, remodeling
or rebuilding of any non-residential building, structure, or premises, currently connected to the
~° water system, in a manner which increases the size of the meter shall be calculated as follows:
ACF =NCF - OCF
Wherein,
"ACF" is the additional Fee;
"NCF" is the new Fee calculated per Section 2(b) with the size of the meter to be determined
based on the facility after the expansion, remodeling or rebuilding; and
"OCF" is the old Fee calculated per Section 2(b) with the size of the meter used at the facility
prior to any expansion, remodeling or rebuilding.
iii. Industrial Relocation. This provision shall not be applied to a non-
residential property or building that was formerly used for an industrial operation that has
vacated the premises, relocated to a different parcel, and/or has received a relocation credit per
Section 5.
c. Annual Economic Adjustment To Fee. On July 1 of each year,
commencing on July 1, 2009, the Fees described herein shall be adjusted to account for increases
or decreases in the index set forth below. The Fees shall be adjusted as follows.
i. Annual Economic Adjustment To Fee. The Fee shall be adjusted
in accordance with the following formula:
NCF = OCF + ((OCF) x (ENR Annual Change))
Wherein,
"NCF" is the new or adjusted Fee for the upcoming fiscal year;
"OCF" is the Fee in effect during the current fiscal year; and,
Resolution No. 2008-096 N.C.S. Nage 6
"ENR Annual Change" is the percentage change in the Engineering News Record Construction
Cost Index for the San Francisco area from December for the second prior calendar year to
December for the prior calendar year.
d. Computation and Payment of Fees: The Director or his/her designee shall
compute all Fees set forth in 2(b). Payment for the Fees shall be made in full prior to connection
to the water system.
Time for Imposing Fee for Residential Subdivisions.
In accordance with Government Code Section 65961, the Fee for subdivisions for Single
Family and Multiple Family subdivision Development for which tentative or parcel maps are
required pursuant to the Subdivision Map Act (Government Code Section 66410 et seq.) shall be
imposed at the time of setting the conditions that apply to the tentative or parcel map for such
residential subdivision Development, as applicable. Payment of the Fee shall be deemed to be a
condition of all such tentative or parcel maps. Notwithstanding this Section 3, the time for
payment of the Fee for all Development, including Single Family and Multiple Family
subdivisions, shall be as specified in Section 4, below.
4. Time for Fee Past.
a. A Fee shall be charged and paid for each Development upon issuance of
the building permit for such Development.
5. Allowance for Industrial Relocation Credit
a. Applicability This section shall apply to Industrial customers only. If the
transfer of an industry, using water, to a different parcel of land does not impose any additional
burden on the City's water utility, a credit, which shall be referred.. to as a relocation credit, may
be allowed, provided that:
i. Same Operation. Essentially the same industrial operation, as
determined by the Director, has been transferred from one parcel to another and such operation
was previously connected to the City's wastewater utility;
ii. Ownership. The same person now making claim to the relocation
credit owned the industrial operation prior to the transfer and will continue to own the industrial
operation at the new location.
iii. Abandonment The owner has demonstrated to the satisfaction of
the City that the industrial operation has been abandoned from the parcel from which the transfer
has occurred, or presented a certification in writing that such industrial operation will be
abandoned within six (6) months of the City approving an application for connection. Should the
industrial operation not be abandoned within the prescribed period, the relocation credit shall be
revoked and a capacity fee, with respect to the parcel to which the ..industrial operation
transferred, shall be due and payable as of the date said parcel was connected to the City's water
utility.
iv. Disconnection. The connection to the water utility at the prior
parcel has been disconnected and capped, the meter has been removed, and the account closed.
Resolution No. 2008-096 N.C,S. Page 7
Any subsequent use of the prior parcel requiring connection to the water system will pay a new
water capacity fee in accordance with this resolution.
v. .Capacity. There is adequate capacity in the City's water utility to
accommodate connection of the industrial operation to be transferred.
b. Basis For Relocation Credit. The Fee for the relocated industrial operation
shall be calculated per Section 2(b). If the meter size for the industrial operation at its new
location is equivalent to the meter size for the industrial operation at its prior location, no
additional capacity fee shall be applied. If the meter size for the industrial operation at its new
location will be increased over the meter size for the industrial operation at its prior location,
then an additional capacity fee shall be calculated per Section 2(b).
6. Use of Fee Revenue.
In accordance with Government Code Section 66013(c), the revenues raised by payment
of the Fee shall be placed in a separate, interest bearing account to permit accounting for such
revenues and the interest which they generate. Such revenues and interest shall be used only for
the Facilities and the purposes for which the Fee was collected, which are the following:
a. To pay for acquisition of the Facilities;
b. To pay for programs, measures, design, engineering, construction. of and
property acquisition for, and reasonable costs of outside consultant studies related to, the
Facilities;
c. To reimburse the City for the Facilities constructed by the City with funds
~. from other sources including funds from other public entities, unless such funds were obtained
from grants or gifts intended by the grantor to be used for the Facilities.
d. To reimburse developers that have designed and constructed any of the
Facilities with prior City approval and have entered into an agreement, as provided in Section 10
below; and
e. To pay for and/or reimburse costs of program development and ongoing
administration of the Fee program, including, but not limited to, the cost of studies, .legal costs,
and other costs of updating the Fee.
7. Standards.
The Standards upon which the need for the Facilities are based are the standards of the
City, including the standards contained in the General Plan, the E.LR., and those City standards
reflected in the Report.
8. Periodic Review.
In accordance with Government Code Section 660.13(d), the City shall make available to
the public, within 180 days after the last day of each fiscal year, the following information for
that fiscal year:
Resolution No. 2008-096 N.C.S. Page 8
a. A description of the charges deposited in the account.
b. The beginning and ending balance of the account and the interest earned
from investment of moneys in the account.
c. The amount of charges collected in that fiscal year.
d. An identification of all of the following:
i. Each public improvement on which charges were expended and
the amount of the expenditure for each improvement, including the percentage of the total cost of
the public improvement that was funded with those charges if more than one source of funding
was used.
ii. Each public improvement on which charges were expended that
was completed during that fiscal year.
iii. Each public improvement that is anticipated to be undertaken in
the following fiscal year.
iv. A description of each interfund transfer or loan made from the
capital facilities fund. The information provided, in the case of an interfund transfer, shall
_identify the public improvements on which the transferred moneys are, or will be, expended.
The information, in the case of an interfund loan, shall include the date on which the loan will be
repaid, and the rate of interest that the fund will receive on the loan.
The information required pursuant to this Section 8 may be included in the City's annual
financial report.
The information prescribed in this Section 8 shall not apply to: moneys received to
construct public facilities pursuant to a contract between a local agency and a person or entity,
including, but not limited to, a reimbursement agreement pursuant to Government Code Section
66003, or to charges that are used to pay existing debt service or which are subject to a contract
with a trustee for bondholders that requires a different accounting of the charges, or charges that
are used to reimburse the local agency or to reimburse a person or entity who advanced funds
under a reimbursement agreement or contract for facilities in existence at the time the charges
are collected.
9. Subsequent Analysis and Revision of the Fee.
The Fee set herein is adopted and implemented by the City Council in reliance on the
Record identified above. The City may continue to conduct further study and analysis to
determine whether the Fee should be revised. When additional information is available, the City
Council may review the Fee to determine that the Fee amounts are reasonably related to the
impact of development within the City. In addition to the inflation adjustments pursuant to this
Resolution, the City Council may revise the Fee to incorporate the findings and conclusions of
further studies and any standards in the EIR and General Plan, as from time to time amended by
the City.
Resolution No. 2008-096 N.C.S. Page 9
10. Credits and Reimbursement for Developer Constructed Facilities.
The City and a developer may enter into an improvement agreement to allow the
developer to construct certain of the Facilities. Entering such an agreement is within the City's
sole discretion. Such agreement shall provide for security for the developer's commitment to
construct the Facilities and shall refer to this Resolution for credit and reimbursement. If the
City enters into .such an agreement with a developer prior to construction of one or more of the
Facilities, the City shall provide the developer a credit in accordance with the following:
a. Credit Amount. The credit shall be in the amount of the lowest bid
received for construction of the facility, as approved by the Director. However, in no event shall
a credit pursuant to this provision exceed the current facility cost. For the purposes of this
section, such current facility cost shall be the amount listed in the Report for that particular
facility as subsequently adjusted pursuant to this Resolution prior to issuance of the building
permit for that facility. Once issued, credit pursuant to this section shall not be adjusted for
inflation or any other factor. Credit provided pursuant to this section is not transferable.
b. Application of Credit. Credit pursuant to this section may be applied by
developers against the Fee applicable to a particular project until the credit is exhausted or an
excess credit results. The total credit shall be divided by the number of units (for a residential
project) to determine the amount of credit which can be applied against the Fee. for each unit and,
if the credit per unit is less than the Fee per unit, the developer shall pay the difference for each
unit. If a credit pursuant to this section is less than the Fee applicable to a particular non-
residential development project, the developer shall pay the City the balance in cash.
c. Reimbursement for Excess Credit. Reimbursement for excess credit shall
only be from remaining unspent Fee revenues. Once all the Facilities have been constructed or
acquired and to the extent Fee revenues are sufficient to cover all claims for reimbursement of
Fee revenues, including reimbursement for excess credit, developers with excess credit shall be
entitled to reimbursement, subject to such developers certifying in writing to the City that the
cost of constructing the facility which resulted in an excess credit was not passed on to
homeowners, and indemnifying the City from land owner claims for reimbursement under
Government Code Section 66000 et seq. and Section 66001 in particular. If remaining fee
revenues after all of the facilities have been constructed or acquired are insufficient to cover all
claims .for reimbursement of fee revenues, such claims, including claims for reimbursement of
excess credit, shall be reimbursed on a pro rata basis in accordance with applicable law.
11. Effective Date.
This Resolution shall become effective on the effective date of the General Plan. The Fee
shall become effective and supersede the predecessor water fee established and adopted by
Resolution Number 88-93 N.C.S., adopted March 28, 1988 and revised by Resolution Number
91-18 N.C.S., adopted January 27, 1991 upon satisfaction of Government Code Section 66017
requirements applicable to this Resolution.
12. Severability.
Each component of the Fee and all portions of this Resolution are severable. Should any
individual component of the Fee or any portion of this Resolution be adjudged to be invalid and
Resolution No. 2008-096 N.C.S. Page 10
unenforceable by a body of competent jurisdiction, then the remaining Fee components and/or
Resolution portions shall be and continue in full force and effect, except as to those Fee
components and/or Resolution portions that have been adjudged invalid. The City Council
hereby declares that it would have adopted this Resolution and each section, subsection, clause,
sentence, phrase, and other portion thereof, irrespective of the fact that one or more section,
subsection, clause, sentence, phrase or other portion may be held invalid.. or unconstitutional.
13. Supersecession/Repeal/Savings.
All resolutions and parts thereof in conflict with the provisions of this Resolution are
superseded and repealed, effective on the effective date of the Fee imposed pursuant to Section
2. However, violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective
date of this Resolution, under any chapter, ordinance, or part of an ordinance; or resolution or
part of a resolution, shall be deemed to remain in full force for the purpose of sustaining any
proper suit, action, or other proceedings, with respect to any such violation, right, liability or
appeal.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify [he foregoing Resolution was introduced and adopted by the y%~ ~1~pprov~ d as to
Council of the City of Petaluma xt a Regular meeting on the 19`h day of May. 2008, j \! fogm:
by the following vote: sr '~, ~
AYES: Barrett, F-Farris, Nau, O'Brien, Vice Mayor Rabbitt, Mayor Torliatt
NOES: None
ABSENT: Freitas
ABSTAIN: None
ATTEST: f'
Deputy City Clerk
City~ttorney
Resolution No. 2008-096 N.C.S. Pagel I