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HomeMy WebLinkAboutStaff Report 4.A 3/3/2014 Agenda/Itevw#4.A rose DATE: March 3, 2014 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Scott.Duiven, Senior Planner1P SUBJECT: Resolutions Replacing Existing Development Related Fee Resolutions RECOMMENDATION It is recommended that the. City Council adopt the attached resolutions replacing existing development related fee resolutions: • Resolution Replacing the Current City Facilities Development Impact Fee Resolution Providing for City Facilities for Future Development within "the City of Petaluma, Resolution No. 2012-121 N.C.S., Adopted August 27, 2012, to Amend Provisions Governing Housing Definitions and Credit for Prior Uses. (Attachment 1) • • Resolution Replacing the Current Park Land Development Impact Fee Resolution Providing for Park Improvements for Community and Neighborhood Parks for Future Development within the City of Petaluma, Resolution No..2012-122,N.C.S., Adopted August 27, 2012, to Amend Provisions Governing 1-lousing Definitions and Credit for Prior Uses. (Attachment 2) • Resolution Replacing the Current Park Land Acquisition Fee Resolution for Non- Quimby Act Development Projects Providing for Park Land Acquisition Necessary to Serve Future Development Within the City of Petaluma, Resolution No. 2012-124 N.C.S., Adopted August 27, 2012, to Amend Provisions Governing Housing Definitions and Credit for Prior Uses. (Attachment 3) • Resolution Replacing the. Current Open Space Land Acquisition Fee Resolution for New Development Projects to Provide for Open. Space Land Acquisition Necessary to Serve Future Development within the City of Petaluma, Resolution No. 2012-123 N.G.S., Adopted August 27, 2012, to Amend Provisions Governing Housing Definitions and Credit for Prior Uses. (Attachment 4) • Resolution Replacing the Current Traffic Development Impact Fee Resolution for Future Development within the City of Petaluma, Resolution No. 2012-125 N.C.S., Adopted Agenda Review: City Attorney Finance Director City Manager \/l August 27, 2012, to Amend Provisions Governing Housing Definitions, Credit for Prior Uses and Refund of Fees Already Paid. (Attachment 5) • Resolution Replacing the ,Current Wastewater Capacity Fee Resolution for New Development in the City of Petaluma, Resolution No. 2012-127 N.C.S., Adopted August 27, 2012, to Amend Provisions Governing Time of Payment. (Attachment 6) BACKGROUND In 2012 the City Council adopted an updated development impact fee program to meet the City Council's goal of reducing development.fees while preserving funding for planned infrastructure necessary for implementation of the General Plan 2025 and entitlement of projects relying on the General Plan EIR and related improvement plans for mitigation of cumulative impacts. Since the adoption of the development impact-fee'resolutions there.have been a few issues associated with implementation/administration of the new fees. Staff presented these issuesto the City Council at its September 23`' workshop on zoning and fee updates for direction. DISCUSSION The recommended changes are administrative in nature and likely will generally not raise the amount of the impact fees.charged for future development by type of use. Some of the changes however, may have the effect of generating more fees from a particular development project. In the case of credits for prior uses, the change may result in lesser impact fee revenues. There are four areas that need attention: • Definitions • • Amount of Fee —credit for prior uses • Fee Adjustments— refund of fees already paid • Time of Payment— wastewater fee Definitions Single-Family and Multi-Family Residential: the current definitions in the' fee resolutions reference the California Building Standards Code which differ from the definitions 'included in the fee studies themselves. This change is limited to the City Facilities, Park Land Development, Park Land Acquisition, Open Space Acquisition, and Traffic Development Impact Fee resolutions (Attachments 1-5). Staff is recommending the following edits to each of the fee resolutions: "Multi-Family Residential" shall mean any residential Development that does not qualify as detached single-family dwelling unit Development as defined in the Report . ..• . • . •. .. , as adopted by the City. 2 "Single-Family Residential' shall. mean detached, single-family dwelling unit development as defined in the Report California Builders Standards Code, as adopted by the City.- This modification ensures that residential projects are assessed impact fees consistent with the type of residential use as defined in the impact fee studies. For example, there are some residential projects that under the California Building Standards Code would be considered multi-family which in the fee studies would be consideredsingle-family residential. Amount of Fee— Credit for Prior Uses An issue has been raised by projects.seeking clarification of credits for prior uses on a site. The current fee language applies to nonresidential development projects only. The primary purpose of this limitation was to address economic development goals of incentivizing redevelopment of underutilized sites and reads as follows: "Any non-residential development on property on which a building or structure was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution that is applicable to the new development or use, less the fee applicable to the prior development or use, so long as such prior use was in existence at the time of adoption of General Plan 2025." The City Council at its workshop expressed an interest in extending this credit to both nonresidential and residential projects located within a half-mile of the proposed SMART Rail Stations in an effort to incentivize development in proximity to the'planned stations. This change is limited to the City Facilities, Park Land Development, Park Land Acquisition, Open Space Acquisition, and Traffic Development Impact Fee resolutions (Attachments 1-5). Staff recommends adding the following provision to Section 5 of the resolution as follows to meet this policy: 5. Amount of Fee. d. Any development on any parcel any portion of which is located within one half-mile of any portion of a parcel identified as a possible future location for a SMART Rail Station on which parcel proposed for development a building or structure was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution that is applicable to the new'development or use, less the fee applicable to the prior development or use, so long as such 3 prior use was in existence at the time of adoption of General Plan 2025: Fee Adjustments—Refund of Fees.Already Paid The updated fees in 2012 included a refund provision for projects that paid under the 2008 fee structure with the exception of the traffic development impact fee. This fee had a refund provision tied to the redevelopment supplement only. The redevelopment supplement represents the $18.8M in former Petaluma Community Development Commission (PCDC) agreements currently disputed by the CA Department of Finance. The City is collecting this supplement pending resolution of the status of these funds, which as of yet remains'unresolved. In addition, the 2011 fee resolutions included a provision that made the fees, including Traffic Impact, inapplicable to any public,for quasi-public development on lands designated Public/Semi-Public or Education on the General Plan Land Use Map. In June 2012, prior to the November 2012 effective date of the current fee program, St. James Church paid impact fees which under the current program would not have applied. St. James has been issued a refund for those fees subject to the following provision, With theexception of the traffic impact fee, for which no refund provision was included. Based on input from the City Council workshop on September 23, 2013 it was the intent of the City Council for these types of projects to receive a refund of the traffic impact fee. Staff has drafted a new provision for the updated traffic development impact fee resolution in order to issue a refund. The provision is the same as included in the other fees but limits a refund of traffic impact fees only to public or quasi-public development on lands designated Public/Semi- Public or Education. Staff proposes adding a new provision to Section 13. Fee Adjustments as follows: 13. Fee Adjustments. c. Refund applications based on 2008 Development Fees Paid. Current owners of development that paid development fees pursuant to Resolution No. 2008-095 N.C.S. may apply,for a refund of the difference. if any,- between the.total development fees that owner paid pursuant to Resolution No. 2008-095 N.C.S. ("prior fee"), and the total development fees applicable to that development under this resolution ("current fee"), if the total amount of prior fees paid exceed the total amount of current fees applicable to that development,.subject to the.following: 1. To be eligible for a refund, the project must be a public or quasi-public development as defined in Section 7 e. of this resolution. 4 2. To be eligible for a.refund, current development owners must certify in writing to the City that the owner has not recovered or is not recovering from third parties such as tenants or others the amount of the prior fees paid or the amount bywhich the prior.fees•exceeds the current fees. 3. Any refunds pursuant to this provision shall only be paid from existing. un-obligated, unspent Fee: revenue balances. The City will have no obligation to pay refunds to any owner absent sufficient existing, un- obligated, unspent Fee revenue balance available for that purpose. 4. If existing, un-obligated,, unspent Fee revenue balances'are insufficient to cover eligible,applications for refund, such 'eligible applications shall be paid refunds on'a-pro rata basis:in accordance with applicable law. Time of Payment- Wastewater Fee Public Works staff has run into some instances where an industry wants to increase their discharge quantity/quality by changing their processes, or increasing production when no new facilities that would trigger 'a building permit are planned. This could be as simple as adding a second shift. This can be done in many cases without pulling a building permit. However, such • changes in operations beyond those requiring a building permit can have significant impacts on the utility. While the following section clearly addresses the means of calculating the capacity fee based on expanded use it does not address operational changes. Staff recommends adding the underlined text to this section,of the wastewater capacity fee. D. Capacity Fee on Rebuilding, Remodeling or Expansion of Existing Non- Residential User Facilities. In the event of any operational changes subject to issuance of a new or revised industrial wastewater discharge permit, expansion, remodeling or rebuilding of any non-residential building, structure, or premises, currently connected to the'wastewater system, in a manner which increases-the loading parameters, an additional capacity fee shall be due. In no instance shall a refund be granted if therebuilding, remodeling or expansion.of a Non-Residential User facility decreases the size of the building or the loading parameters. The additional capacity fee for the expansion, remodeling or rebuilding of any non-residential building, structure, or premises, currently connected to the wastewater system, in a manner which increases the loading parameters, shall be calculated as follows: ACF = NCF —OCF Wherein, "ACF" is the additional capacity.fee; "NCF" is the new capacity fee calculated per Section 5(b)(iii)(A) with the values of the loading parameters (DF, 130D and TSS) to be determined based on the facility after the expansion, remodeling or 5 rebuilding (note: this is not to be the incremental increase in loading— it is to represent the total loading.of the facility); and "OCF" is the old capacity fee calculated per Section 5(b),(iii)(A) with the values of the loading parameters to be based onthe facility prior to any expansion, remodeling or rebuilding. In order to further address significant expansion of discharge in instances where no new facilities require a building permit staff is recommending changes to the "Time for Fee Payment" language as shown below (underlined text) to address the issue by providing the necessary trigger beyond just expansion of facilities: Time for Fee Payment. A Fee shall be charged and paid for each Development upon issuance of the building permit for such Development, or upon issuance of a new or revised industrial wastewater discharge permit subject to applicable law. FINANCIAL IMPACTS Financial impacts beyond the staff time required to prepare this report and provide public notice may include an increase in development impact,fee revenue in some instances, while in others the potential for reduced development impact fee revenue: However, the proposed changes are limited to certain instances, as described in the report, and are not anticipated to have a significant impact on the overall development impact fee program. ATTACHM ENTS I. Resolution Replacing the:City.Facilities Development Impact Fee 2. Resolution Replacing the Park Land Development Impact Fee 3. Resolution Replacing the Park Land Acquisition Fee 4. Resolution Replacing the Open Space Land Acquisition Fee 5. Resolution Replacing the Traffic Development Impact Fee 6. Resolution Replacing the Wastewater Capacity Fee 6 ATTACHMENT I RESOLUTION REPLACING THE CURRENT CITY FACILITIES DEVELOPMENT IMPACT FEE'RESOLUTION PROVIDING FOR CITY FACILITIES FOR FUTURE DEVELOPMENT WITHIN THE CITY OF PETALUMA, RESOLUTION NO. 2012=121 N.C.S., ADOPTED_AUGUST 27, 2012, TO AMEND PROVISIONS GOVERNING HOUSING DEFINITIONS AND CREDIT FOR PRIOR USES RECITALS WHEREAS, the City of Petaluma General Plan 2025 ("General Plan") outlines future land uses within the City of Petdluma ("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 ("ElR") was prepared for the General Plan (State Clearinghouse #2004082065) pursuant to the California Environmental Quality Act ("CEQA") and certified by the City Council on April 7, 2008 by Resolution No. 2008-058 N.C.S.; and, WHEREAS, the General Plan area is shown on the land use maps contained in the General Plan; and, WHEREAS, the City Council last adopted legislation governing the City Facilities Development Impact Fee by Resolution No. 2012-121 N.C.S., adopted August 27, 2012; and, WHEREAS; the General Plan designates defined land uses 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 when all property in the City is developed as anticipated in the General Plan; and, WHEREAS, the General Plan incorporates policies;andprograms to mitigate.the impacts of such anticipated-new,development, including policies that require•new development to pay for its proportional fair share of the cost of acquiring and improving public facilities, including community and •neighborhood park improvements, necessary to meet the demands of residents, employees, customers; and businesses; and, WHEREAS, the General Plan:and its BIR analyze the impacts of development under the General Plan and proposedmitigation measures, including the creation of fee programs to require new development, to pay for its proportional fair share of the cost of acquiring, and improving public facilities necessary to meet the demands of new residents, employees, customers, and businesses'forsuch facilities; 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-48 of Goal 1-G-6 of Chapter 1 of the General Plan providesthat 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 fair 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 to.coincide with demand"; and, WHEREAS, Goal 6-G-1 of Chapter 6, Policy 6-P-13, of the General Plan provides that a key element of Petaluma's Parks and Recreation Services is to "Recognize, maintain, and improve aquatics programs"; and, WHEREAS, Goal 6-0-1 of Chapter 6, Program (C) of Policy 6-P-13 of the General Plan provides that the City should "Produce an Aquatic Plan to ensure that a full range of aquatic programs are provided in Petaluma" and that the Aquatic, Plan "shall analyze the projected population and demographic changes-in Petaluma and the anticipated impact of those changes on the future demand for aquatic facilities, and programs"; "evaluate the current capacity of Petaluma's aquatic facilities, taking into consideration the impact of proposed development adjacent to the Petaluma Swim Center site and beyond, and project the viability of those facilities to meet the projected demand"; "shall identify:improvements, enhancements or replacement of existing facilities, including considerations of disabled access in selecting the location, design and capacity of new facilities"; and, WHEREAS, Goal 6-G-4 of Chapter 6 of the General Plan provides that the City should "Support and value the health, education, social activities and overall well-being of our citizens, regardless of age"; and, WHEREAS, Policy 6-P-22 of Goal 6-G-4 of the General Plan provides in part that "It is the City's policy to support and value the health, education, social activities and overall well- being of our youth"; and, WHEREAS, Polley 6-P-24 of Goal 6-G-4 of the General Plan provides that the City should "Recognize the unique needs of Petaluma seniors" and Program A of Policy 6-P-24 provides that the City should "Maintain the Adult/Senior Center and continue to support senior activity programs"; and Program '(B)'of Policy 6-P-24 provides that.the City should "Renovate the Cavanagh Recreation Center in order to expand recreational programming including activities for adult/senior'; and, WHEREAS, Goal 6-G-5: of the General Plan provides that the City should "Recognize the inherent value to Petaluma's quality of life provided through music, theater, dance, visual, and literary arts , and cultural programs"; and, WHEREAS, Policy 6-P-26 of Goal 6-0-5 of the General Plan provides that the City should "Encourage, develop and support arts programs throughout the community that provide for the continued success of musical, theatrical, artistic, and cultural traditions and events in Petaluma: and Program (A) of Policy 6-P-26 provides that the City should "Identify, renovate and/or expand places'for music, art,•and cultural activities to take place"; and, WHEREAS, Goal'7-G-5. of Chapter 7 of the General Plan provides that the goal of the City's tire protection services is to "Protect lives, property, and the environment by providing the 8 highest quality of service in prevention, tire protection, emergency medical services, and community preparedness"; and, WHEREAS, Policy'7-P-17 of Goal 7-G-5 of Chapter 7 of the General Plan provides that the City should''Achieve and maintain a minimum ratio of:one. fire suppression personnel per 1,000 population:served.ora similar level of response service to meet increased call volumes"; and, WHEREAS, Policy 7-P-1.8 of Goal 7-G-5 of Chapter 7 of the General Plan provides that the City should "Ensure facilities, equipment and personnel are adequate to maintain quality service demands of the community,'including but not.limited to: fire suppression, Advanced Life Support (ALS), rescue, fire prevention, education, CUPA, and disaster preparedness and management"; and, WHEREAS, Program (C) of Policy 7-P-18 of Goal 7-G-5 of Chapter 7 of the General Plan provides that the City should "Maintain and modernize emergency response facilities, including fire stations, as needed to accommodate population growth"; and, WHEREAS, Policy 7-P-19 of Goal 7-G-5 of Chapter 7 of the General Plan provides that the City should "Maintain four minute travel time for a total of 6-minute response time for emergencies within the City"; and, WHEREAS, Program (A) Of Policy TP-21 of Goal 7-G-5 of Chapter 7 of the General Plan states that the City should "Provide a third ALS ambulance within the Petaluma Fire Department"; and, WHEREAS, Policy 7=P-5. of Goal 7-G-1 of Chapter 7 of.the General Plan provides that the City should "Upgrade and expand public facilities such as the Fire and Police stations...to effectively and efficiently meet future needs of the community residents"; and, WHEREAS, Goal 7-G-6&,of Chapter 7 of the General Plan provides that the City should "Provide police services that are responsive to citizens' needs to ensure a safe and secure environment for people and property in the community"; and, WHEREAS, Policy 7=13-31 of Goal 7-G-6 of Chapter 7 ofthe•General Plan provides that the City should "Maintain a.minimum standard of 1.3 police officers per 1,000 population or a similar level of coverage to meet increased service calls'.'; and, WHEREAS, Policy TP-34 of Goal 7-G-6 of Chapter 7'of the General Plan provides that the City should "Plan for expanding,or-replacing the police station with a facility of sufficient size to accommodate police operations, community requirements and the anticipated population growth," and that "Funding of expanded facilities should be addressed through the implementation of adequate Public Facilities fees as identified in the Implementation Plan'; and, WHEREAS, Program (B) of Policy 7-4-36 of Goal 7-G-6 of Chapter 7 of the General Plan provides that the City should "Maintain, train, and equip special response teams for extraordinary or extremely hazardous emergency incidents"; and, WHEREAS, Goal 7-G-I ofChapter 7 of the General Plan provides that the City should "Ensure adequate public facilities and services exist and are maintained to meet the needs of the community for an array of high quality services and programs"; and, 9 WHEREAS, Policy 7-P-1 of.Goal 7-G-1 of Chapter 7 of the General Plan provides that the City should Coordinate withother"agencies, such as the Sonoma County Library, to ensure that facilities,plans.are implemented in concert with Cityplans.to bestmeet the facilities>needs of the community"; and, WHEREAS, Goal 7-G-2 of Chapter 7 of the General Plan provides that the City should "Encourage the development of infrastructure and services to allow equal access to all who live, work, and study in Petaluma to utilize new technologies to communicate with individuals and institutions from the local to global level"; and, WHEREAS, Policy 7-P-7 of Goal 7-G-2 of Chapter 7 of the General Plan provides that the City should "Plan for the:highest and best level of technology available given the purpose of the service, the ability to provide that service, and fiscal reality";'and, WHEREAS, Policy 7-P-8 of Goal 7-G-2 of Chapter 7 of the General Plan provides that the City should "Anticipate, plan for, and react to changesin technology"; and. WHEREAS, Program (A) of Policy 7-P-8 of Goal 7-G-2 of Chapter 7 of the General Plan provides that the City should "Develop a telecommunications infrastructure that is not dependent on any single medium, but incorporates a variety of media such as fiber optics and wireless"; and. WHEREAS, Goal TG-3 of Chapter 7 of the General Plan provides that the City should "Encourage the development of technology to increase participation in local governance and improve access to City information'; and, WHEREAS, Policy 7-P-9 of Goal 7-G3 of Chapter 7 of the General Plan provides that the City should "Utilize technology to enhance the transparency of the local decision making processes"; and, WHEREAS, Policy 7-P-I0 of Goal 7-G-3 of Chapter 7 of the General Plan provides that the City should "Use technology as a tool to encourage participation in governance at all age levels,particularly involving youth?'; and, WHEREAS,Policy 7-P-11 of Goal 7-G-3 of Chapter 7 of the General Plan provides that the City should "Use technology to facilitate the exchange of information between local government and the public"; and, WHEREAS, a study-of the impacts of anticipated future development on existing public facilities related to aquatic facilities, community center facilities, fire suppression facilities, law enforcement facilities, library Facilities and other public facilities in the City, and an analysis of the need for such new facilities required by future development was prepared by the Municipal Resource Group; dated August 14, 2012 entitled "City of Petaluma Mitigation Fee Act Nexus Report & Quimby Act In-Lieu Fee Report" ("Report"), a copy of which is on file in the Office of the City Clerk, and is hereby incorporated by reference; and, WHEREAS, the Report, the General Plan and the General Plan EIR describe the municipal public facilities necessary to provide adequate aquatic services in the City to serve new development; includingconstruction of an aquatic complex with a 25 meter lap pool and 3,500 square foot recreation pool at Luchessi Park; and, /D WHEREAS, as analyzed in the Report, the General Plan, and the General Plan EIR, community and recreation services currently provided.at the Jack Cavanagh Recreation Center, Kenilworth Teen Center, Petaluma Museum, Petaluma Community Center, and Petaluma Senior Center, total approximately 63,01'7 square feet, and to maintain this current standard for community center services through`General Plan build-out, an additional 15,705square feet of community and recreation services proyided at these community center facilities is required to serve new development; and, WHEREAS, the Report, the General Plan and the General Plan FIR describe and analyze the need for new municipal public facilities required by future development within the City of Petaluma for firefighting,and;ire suppression services, including relocation of an existing station, refurbishment of existing station space, and acquisition of necessary equipment; and, WHEREAS, the Report; the General Plan and the General Plan EIR describe and analyze the need for new-municipal public facilities required by future development within the City of Petaluma for construction of a new police station, construction of one communication tower, and acquisition of law-enforcement equipment and vehicles;and, WHEREAS, as analyzed in the General Plan, the General Plan FIR and the Report, library services are currently proyided at the-25,808 square foot Petaluma Regional Library, and to maintain this current standard for library services through General Plan build-out, an additional 6,452 square feet of library facilities is.required; and, WHEREAS, as analyzed in the General Plan, the 'General Plan FIR and the Report, public facilities and services-are currently provided.at City Hall and other City facilities and to maintain the current standard,forfacilities and services through General Plan build-out, the City should: relocate and construct City Hall; construct a new Corporation Yard; install VOIP communication systems; acquire adininistrative pool vehicles; acquire public works general maintenance vehicles; acquire parks general maintenance vehicles; and acquire technology (computers); and, WHEREAS, the Report, the General Plan and the General Plan FIR describethe impacts of contemplated future development on existing public facilities in The City of Petaluma and analyze the'need for the new municipal public facilities required by-future development within the City of Petaluma, described above and in Chapter Ill and Appendices A through 0 of the Report (hereafter the "Facilities"); and, WHEREAS, the Report sets forth the relationship' between contemplated future development, the.Facilities; and,the estimated cost ofthe Facilities; and, WHEREAS, the Report estimates the cost in current dollars of the Facilities,,assigns the portion of the cost attributable to new development, and calculates the fees necessary to raise the revenue necessary to pay for the portion of the cost of the Facilities attributable to new development; and, WHEREAS, the City Council has established Title 19 in the Petaluma Municipal Code entitled "Development Fees" including adoption of Petaluma Municipal Code Chapter 19.04 entitled "City Facilities,Development Impact Fee"; and, 1/ WHEREAS, The City. Facilities Development Impact Fee is not a "tax" as defined in Section 1, paragraph (e) of Article XIIIC of the California Constitution ("Proposition 26") because such fee is imposed for a specific benefit conferred or privilege.,granted directly to the payor thatis not provided to those not,charged, and which does not exceed the reasonable cost to the City of providing the,serviceor product; and/or the fee:is-imposed for a specific government service or product provided directly to the payor thatis'not provided to those not charged, and which does not exceed the reasonable cost-to the City Of providing the service or product; and/or the fee is imposed for the reasonable regulatory costs to the City of issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof; and/or the fee is imposed as a condition of property development; and, WHEREAS, the City Facilities Development Impact Fee is notsubject to the requirements of Article XIIID of the California Constitution ("Proposition 218") concerning property related assessments.arid fees pursuant to Apartment Association of Los Angeles County v. City of Los Angeles (2001) 24 Cal.4th 830, in that such fee is not applicable to incidents of property ownership, but rather to actual use.of and need for City services and/or facilities; and, WHEREAS, in accordance with Government Code Section 50076, fees and charges that do not exceed the reasonable cost of providing the service or regulatory activity for which the fees are charged and which:are not levied for general revenue purposes are not special taxes as defined in Article 3.5 of the Government Code; and, WHEREAS, in accordance with Government Code Section 66016, at least fourteen (14) days prior to the public meeting at Which this Resolution was adopted, notice of the time and place of the meeting was mailed to eligible interested parties who filed timely written requests with the City for mailed notice of meetings on new or increased Tees 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 meeting at which the City Council considered the adoption of this'Resolution; and, WHEREAS, ten (10) days advance notice of the public meeting at which the City Council considered the adoption of this resolution was given by publication in accordance with Government Code Section 6062a: and, WHEREAS, on September 10, 2012, the City Council adopted Ordinance No. 2444 N.C.S, which adds a new Title 19, entitled "Development Fees?" to the. Petaluma Municipal Code and amends, repeals and/or recodifies various provisions authorizing the City's development=related fees, including the City Facilities Development Impact Fee, Open Space Land Acquisition Fee, Park Land Acquisition Fee (Non-Quimby Act), Park Land Acquisition Fee (Quimby Act), Traffic Development Impact Fee, Water and Wastewater Capacity Fees and the Commercial Development Housing Linkage Fee; and, FINDINGS WHEREAS, the City Council finds as follows: A. After considering Chapter III and Appendix A through 0 of the Report, the testimony received at the noticed public meeting at which this resolution was adopted, the accompanying staff report, the General Plan, the General Plan FIR, and all /2 correspondence received at or prior to the public meeting (the "Record"), the Council approved and.adopted the.Report by Resolution No. 2012-121 N.C.S. adopted August 27, 2012; and the City Council further found that the future development in the City of Petaluma will generate the need for the Facilities, and the Facilities are consistent with the City's General Plan. B. The City currently provides facilities to the community and the- fee set forth in this resolution will be used to maintain current service levels. As such, the City Facilities Development Impact Fee as it relates to development within the City is not a "project" within the meaning of CEQA (Pub. Res. Code §21080(b)(8)(D)). C. In adopting this resolution, the City Council is exercising its powers under Article XI, §§5 and 7 of the California Constitution, Chapter 5 of Division I of the Government Code ('`Mitigation Fee Act'), commencing with Section 66000, Section 54 of the City of Petaluma Charter, and Chapter 19.04 of the Petaluma Municipal Code, collectively and separately. D. The Record establishes: 1. In accordance with Section 66000, subdivision a, paragraph 1 of the Mitigation Fee Act, the purpose of the City Facilities Impact Fee ("Fee"), set forth in this resolution, as specified in Chapter III of the Report, is to provide funding to achieve the City's goal of maintaining existing service levels and provide,public facilities'to Meet the broad range of needs of Petaluma. residents and employees as established in the General Plan. Existing standards of service have been established for each component of the Fee, which have been used as the basis to maintain the facilities standards for future development and to mitigate the impacts caused by future development in the City. 2. In accordance with Section 66000, subdivision a, paragraph 2 of the Mitigation Fee Act, the Fee collected pursuant to this resolution shall be used to finance construction of the Facilities as described'in the Report, the General Plan and the City's budget for capital improvements. The Facilities, which are specifically described in Chapter III and Appendices A through 0 of the Report, include the following: • Construct City 1-tall Construct corporation yard facilities • Install VOW system • Purchase Public Works, Parks, and'administrative pool vehicles • Purchase technology equipment • Relocate and construct Fire Station #1 • Refurbish Fire Station#2 and Fire Station:#3 • Purchase Advanced Life Support (ALS)ambulance Purchase.firefighterprotective gear • Construct.Police Station • Install communications tower !3 • Purchase police officer equipment • Purchase patrol vehicles • Construct aquatic facility • Expand library facility • Expand community center facility 3. In accordance with section 66000, subdivision a, paragraph 3 of the Mitigation Fee Act, there is a reasonable relationship between the Fee's use (to pay for the construction of the Facilities) and the type of development for which the Fee is charged in that the fee will be applied all development in the City — including residential, commercial, office; and industrial development projects; which will generate new demands for ,public facilities and services: The public facility improvements constructed and the vehicles and equipment purchase with the proceeds of the Fee will address and mitigate the additional impacts and demands created by residential'and'non-residential developmentprojects. 4. In accordance with Section 66000, subdivision a, paragraph 4, there is a reasonable relationship between the need for the Facilities:andthe types of development projects on which the Fee is imposed in that the Fee will be applied to new development in the City of Petaluma — both residential and non-residential. These development projects will generatenew residents and employees who live, work, and/or shop in Petaluma and who generate or contribute to theneed for the Facilities, as follows; • The City Hall will be occupied by City staff members who provide direct City services to resident and employees. Equipment has been identified that will be used by staff serving future populations.. • The corporation yard will be occupied by Public Works Department staff members who maintain City streets, drainage systems, and other public facilities that serve development projects. • The Parks, Public Works and pool vehicles are necessary for the transportation and services provided by City staff to future residents and employees. • The tire station construction and refurbishing projects willprovide additional capacity for lire and emergency service personnel who provide direct City services to residents and employees. The ALS ambulance and equipment are necessary for the emergency transportation and services provided by emergency responders; and to 'maintain the General Plan standard of 1 firefighter/1,000 population. • The police station construction will provide a facility for law enforcement personnel who provide direct public safety services to residents and employees. The vehicles 'and equipment are necessary for the transportation and services provided by emergency responders, and as required to meet the General Plan standard of 1.3 officers/1,000 population. • The aquatic facility will serve the needs of new residents, as well as employees in new non-residential (commercial, office and industrial) development projects /! /7 • The expansion of the library facility will provide additional capacity to serve future populations and employees. • The expansion of the community center facility will provide additional capacity to servefuture populations and employees. 5. In accordance-with Section 66000, subdivision b of the Mitigation Fee.Act, there is a reasonable relationship between the amount of the Fee and the cost of the Facilities, or the portion thereof attributable to the development in'the City on which the Fee is imposed in that the Fee has been calculated by apportioning the cost of the•Facilities to each type of new residential unit, and to the. "resident equivalent" of each employee generated by commercial, Office and industrial development projects. For Facilities that are necessary solely because of,future development, the full cost of the Facilities has been allocated, to the Fee. For Facilities that will serve existing and future residents and employees, the costs have been allocated proportionally based on the number of existing versus future residentsandemployees. 6. The cost estimates set forth in the Report are reasonable estimates for constructing or acquiring the Facilities, and the Fees expected to be generated by future development will not exceed the•projected cost of constructing and/or acquiring the Facilities; and 7. The method of allocation of the Fee, to a particular: development bears a fair relationship and is "roughly proportional to each development's burden on and benefits from the Facilities to be funded by the Fee, in that-the Fee is calculated based on the number of residents•or employees each particular development will generate. 8. The Report is a detailed analysis of how public services will be affected by development in the 'City and the public facilities required to accommodate that development. 9. The Fee is consistent with. the General. Plan and, pursuant to Government Code Section 65913.2, the.City Council has considered theeffects of the Fee with respect to the City's housing needs as established in the housing element of the General Plan. 10. The Fee amounts set forth in Exhibit A include the reasonable costs of administration and compliance of the Fee program with the requirements of the•Mitigation Fee Act and other applicable law. The Fee program andadministration costis calculated to be approximately 2% of the total Fee as indicated-in Chapter VIII of the Report. ADOPTION OF FEE NOW, THEREFORE, BE IT RESOLVED, Definitions. a. "Accessory Dwelling" shall mean a second unit which meets the standards set forth in Section 7.030 of Chapter 7, "Standards for Specific Land Uses" of the City of Petaluma Implementing Zoning Ordinance ("IZO"), as modified by any subsequent amendment or successor zoning ordinance /S and/or development code provision adoptedby the "City which defines Accessory Dwelling,.second.unit orsecond dwellingunit." b. "Commercial" shall mean any development constructed or to be constructed on land having a General. Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, No. 2300 N.C..S.,,or any successor ordinance, for facilities for the purchase and saleof commodities and services.and the sales, servicing, installation, and repair of such commodities and services and other uses incidental to these activities. Commercial land uses include but are not limited to: apparel and clothing stores;'auto dealers and malls; auto accessories stores; banks and savings and loans; beauty salons; book stores;discount stores and centers; dry cleaners; drug stores; eating and drinking establishments; furniture stores and outlets; general merchandise stores; hardware stores; home furnishings and improvement centers; laundromats; liquor stores; service stations; 'shopping centers; supeririarkets; bicycle shops; cameras and photographic supply stores; convenience stores; department stores; drug stores and pharmacies; jewelry stores; luggage and leather goods stores; sporting goods and equipment stores stationery stores; collectible stores; secondhand goods stores; religious goods stores; hobby materials stores; small wares stores; plant sales; bowling'alleys; coin-operated amusement arcades; 'dance halls, clubs and ballrooms; electronic game arcades; ice skating and roller skating establishments; pool and billiard rooms; amusement and theme parks; go-cart tracks; golf driving ranges; miniature- golf courses; water slides; banks and trust companies; credit agencies; holding companies; lending and thrift institutions;securities/commodity contractbrokersanddealers; fueling stations and gas stations;-security and commodity exchanges; vehicle finance leasing agencies; restaurants, cafes and coffee shops; and movie theatres and civic theatres. c. "Developed" and "development' shall inean the construction or alteration of or addition to, other than by the City, of any building or structure within the City. d. "Facilities" shall include those municipal public facilities as are described in the Report-related to providing general government facilities, vehicles, and equipment. "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 (I) that there is a reasonable relationship between development within the City of Petaluma and the need for the alternative facilities; (2Ythat the alternative'facilities.are.comparable to the facilities in the Reports; and (3) that the revenue_fronrthe Fee will be used only to pay new development's fair and proportionate share of the alternative facilities. e. `Industrial" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation as established in 'the Implementing Zoning Code, Ordinance No. 2300 N.0 S':; or any successor ordinance, for the manufacture, production, assembly, and processing of consumer goods, uses incidental to those activities, and research, development and warehousing. Industrial land uses include,,but are not limited to: assembly; contractor's storage yards; fabrication; lumber yards; manufacturing; outdoor stockyards and service yards; printing processing; warehouses and distribution centers; wholesale and heavy commercial enterprises;- clothing, fabric and other product manufacturing; electronics; equipment, and appliance manufacturing; metal products fabrication; machine and welding shops; paper product manufacturing; food and beverage product manufacturing; small-scale manufacturing; lumber and wood product manufacturing; machinery manufacturing; motor vehicle and transportation equipment manufacturing; Stone and cut stone product manufacturing; structured clay and pottery product manufacturing; processing of building materials, chemicals, fabricated metals, paper products, machinery, textiles, and/or equipment; and collection, sorting and processing enterprises. f. "Mixed Development" shall mean de'elopment that includes more than one of .the types of development defined in this Section 1. Mixed developments may combine residential types of development (Single Family and Multifamily), non-residential types of development (Commercial; Industrial, and Office), or a combination of residential and non-residential types of development. g. "Multifamily Residential" shall mean any residential development that does notqualify as detached single, family dwelling unit development as defined:intheReport, as adopted by the City. h. "Office" shall mean any development constructed or to beconstructed on land having a General Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., or any successor ordinance; for general business offices, medical and professional offices, administrative or headquarters offices for large wholesaling or manufacturing operatioins, and other uses incidental to these activities.. Office land uses include but are not limited to: administrative headquarters; business parks; finance offices; insurance offices; legal offices; medical and health services offices; office buildings; professional and. .administrative offices; professional associations; real estate offices;,and travel agencies. "Single Family Residential" shall mean detached, single-family dwelling unit development as defined in-the Report; asrad'opted by the City. 2. City Facilities Impact Fee Imposed. Pursuant to the Mitigation Fee Act and Chapter 19.04 of the City of Petaluma Municipal Code, a City Facilities Impact Fee .shall be imposed and paid at the times and in the amounts andotherwise apply and beadministered as prescribed in this Resolution on each type of development set forth in Exhibit A, which is attached to and made a part of this Resolution, including each portion of such Development within Mixed Deyelopment. /? 3. Time for Imposing Fee. In accordance with Government Code Section 65961, the Fee for residential subdivision development for which tentatiye,or parcel maps are required pursuant to the Subdivision'Map Act (Government Code Section 66410 el seq.) shall be imposed at the time of approval of.the conditions that apply to the tentative or parcel neap forsuch residential subdivision development, as applicable. Payment of the Fee shall;be deemed to be a condition Of all such tentative orparcel maps. Notwithstanding this Section 3, the time for payment of the Fee for all development, including Single Family Residential and Multiple Family Residential subdivisions, shall be as specified in Section 4, below. 4. Time for Fee Payment. a. In accordance with Government Code Section 66007, the Fee shall be charged and paid for eachresidential development upon thedate of final inspection or issuance of the certificate of occupancy for such residential development, whichever is earlier; however; if"the Fee is to reimburse the City for expenditures previously made, .or>if the City determines that the Fee will be collected for Facilities for which an account has been established and„funds appropriated and for which the City has adopted a proposed construction schedule prior to issuance of the building permit for such residential development, then the Fee shall be charged and paid upon issuance of the building permit for such residential development. However; with' respect to a residential development proposed by a nonprofit housing developer in which at least forty-nine percent (49%) of the total units are reserved for occupancy by lower income households, as defined in Health and Safety Code Section 50079.5, at an affordable rent, as defined in Health and Safety Code section 50053, the payment procedures described in Government Code Section 66007(b)(2)(A)-(B) shall apply. b. The Fee shall be charged and paid for each non-residential Development upon issuance of the building permit for such non-residential Development. c. The Feeshall be charged and paid for each Mixed Development upon.the times specified, in this Section 4 that apply•to such Mixed Development. For example, if a Mixed Development includes residential Development and non-residential Development, and the Fee is to reimburse the City for expenditures previously made, or the City has made the required determination to permit requiring payment of the Fee upon issuance of the building permit, and the procedures iii Government Code section 66007(b)(2)(A)-(B) do not apply, the Fee as applieable,to the entire mixed development shall be paid upon issuance of the building permit for the Mixed Development. If a Mixed Development includes residential and non-residential development, and the Fee is not to reimburse the City for expenditures previously made or the City has not made the required determination to permit requiring payment of the Fee upon issuance of the building permit, the Fee as to the residential portion of the mixed development shall be paid upon the earlier of the date of final inspection /8 • or issuance of the certificate of occupancy.for such residential portion, and the Fee as to'the non-residential portion of the Mixed Development shall be paid upon issuance of the building permit for such non-residential portion. 5. Amount ofFee. a. The amount of the Fee for residential and non-residential development shall beas et forth in Exhibit A. b. The amount.of the Fee for Mixed Development shall be the sum of the following, as applicable: I. The applicable amount per unit pursuant to Section 5(a), above, for each residential development within a Mixed Development. 2. The applicable amount per 1,000 square feetof Development pursuant to Section 5(a), above, for each nonresidential Development or portion of such Development within a Mixed Development. c. Any non-residential development on property on which a building or structure was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution that is applicable to the new development or use, less the fee applicable to the prior development or use, so long as such prior use was in existence at the time of adoption of General Plan 2025. d. Any development on any parcel any portion of which is located within one half-mile ofany portion of a parcel identified as a possible future location for a SMART Rail Station on which parcel proposed for development a building or structure was demolished or-on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution that is applicable to the new development Or use, less the fee applicable to the prior development or use, so long as,sueh prior use was in existence 'at'the time ofadoption of General Plan 2025. 6. Designation of Developments. Nonresidential developments, other than Mixed Developments (but including non-residential developments within Mixed Developments) that are not within the definition of a use defined in this resolution shall be assigned to one of the defined use categories by the City Manager for purposes of imposition and charging of the Fee. The City Manager shall assign such categories as consistently as possible with the definitions of such categories established pursuant to this resolution or as later amended by the City Council. The City Manager may also designate Development as Multifamily or Single-Family based on the actual number of dwelling units per structure within the development. /q 7. Inapplicability of Fee. The-Feeshall not apply to: a. Any alteration or addition to a residential structure, except to the extent thataresidential unit`is added to a single family residential unit or another unit is added igen existing n'ulti-faniily residential unit. b. Any replacement or reconstruction of an existing residential structure that has been destroyed or demolished, if the building permit for reconstruction is obtained within one year after the building was destroyed or demolished. This subsection shall not apply if the replacement or reconstruction increases the square footage of the structure by 50 percent (50%)'or more. c. Any replacement or-reconstruction of an existing non-residential structure that has been destroyed or. demolished, if the building permit for reconstruction is obtained within One year after the building was destroyed or demolished, there is no change in "the land use designation of the property, and the ,square footage of the replacement building does not exceed the square footage of the building that was destroyed or demolished. d. Any addition to an existing non-residential' structure of 500 square feet or less. e. Any public or quasi-public development on lands designated Public/Semi- Public or Education on the General Plan Land Use Map, as of the effective date of the Fee, so long as such development is intended to serve development in the City and does not itself generate a need for additional public infrastructure needed to serve new development, as in the way new residential ,development generates new:residents requiring City services, and new non-residential development generates new employees in the City using,City services. f. Low and/or moderate income senior citizens housing projects owned and developed by a charitable; nonprofit organization recognized as such by the United States Internal Revenue Service and the State of California Franchise Tax Board. g. The City Council, in its discretion, may determine that the Fee is inapplicable to certain development constructed onto be constructed by a public entity on land having. an appropriate General Plan land use designation provide that the City Council finds'thatsuch inapplicability is in the, interest of the public health; safety and/or welfare, for reasons specified in the findings. Such reasons may include, but are not limited to, that the Fee asit would apply to such development by a public entity will be sufficiently recovered in whole or in part from residential development, the.residents of which may constitute the primary users of the public entity development. 8. Use of Fee Revenue. 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 that they generate. Such revenues and interest shall be usedonly for`the Facilities and the purposes'for'which the Fee was collected, which°are'the following: a. To pay for design, engineering; right-of-way or land acquisition and construction and/or acquisition of the Facilities and reasonable costs of outside consultant studies related thereto; b. To reimburse the City for the Facilities constructed by the City with funds from other sources including funds from:other public entities, unless the City funds were obtained from grants or gifts intended by the grantor to be used for.the Facilities. c. To reimburse developers who have designed and constructed any of the Facilities with prior City approval and have entered into an agreement, as provided in Section 9,below; and d. To pay for and/or reimburse costs of program development and ongoing administration and maintenance of the Fee program, including, but not limited to; the cost:of studies, legal costs, and other costs of updating the. Fee. 9. Credits and Reimbursement for Developer Constructed Facilities. The City and a developerMayenter into an improvement agreement to allow the developer to construct certain of the Facilities. Entering such an agreement is in 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 forceredit 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 City. Engineer. However, in no event shall a credit pursuant to this provision exceed the current facility cost. Far the.purposes of this section, such current facility cost shall be the amount listed in the Report for the particular facility, as subsequently adjusted pursuant to Sections 13- and 14 of this Resolution prior to issuance of the building permit for that facility. Once issued, credit pursuant to this section "shall not be adjusted forinflation or any other factor. Credit provided pursuant to this section is not transferable. b. Application of Credit. Developers,niay apply credit given pursuant to this section against the Fee applicable to a particular project until the credit is exhausted or an excess 02/ credit. results. The total credit shall be'divided'by the number of units or square footage}of building space (or combination thereof for a Mixed Use Development), to determine the amount. of credit which can be applied against the Fee for each unit of measurement and,.ifthe credit per unit of measureis less than the Fee per unit of measurement, the developer shall pay' the difference for each residential unit or square footage of building space. 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 that resulted in an excess credit was not passed on to homeowners, and indemnifying the City from land-owner claims for reimbursement under the Mitigation Fee Act, 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. 10. Standards. The standards upon,which the need for the:Facilities is based are.the.standards of the City, including the standards contained in the General Plan and its EIR and those City standards reflected in the Report. 1 I. Periodic Review. a. During each, fiscal year, the City Manager shall prepare a report for the City Council, pursuant to Government Code Section 66006, identifying the balance of Fee revenues in the Fee account. b. Pursuant to Government Code Section 66002, the City Council shall also review, as part of any adopted City capital Improvement Plan each year, the approximate location, size,. time of availability and estimates of cost for all Facilities to be financed with the Fee. The estimated costs shall be adjusted in accordance with appropriate indices of inflation. The City Council shall make findings identifying the purpose to which the existing Fee revenue balances are to be put and demonstrating a reasonable relationship between the Fee and the purpose for which it is charged. 12. Subsequent Analysis and Revision of the Fee. The Fee set forth 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 remainreasonably'related tothe impacts of developinentwithin the City of Fetalunia and areas:included in the City's General Plan. l'he City Council may revise the Fee to incorporate findings and conclusions of further_studies and any 'standards in General Plan and/or the General Plan FIR, as well as increases due to inflation and increased construction costs. 13. Fee Adjustments. a. Annual CPI Adjustments. The Fee established will escalate or decrease annually by the :same percentage the latest "Engineering News Record Construction Cost Index — 20 City Average'= ("Index") annually escalates or decreases. The adjustment shall be based on a comparison of the most recent Index to the Index in the month of adoption of the Fee, or the Index used for the prior adjustment of the Fee. The Finance Director shall compute the increase or decrease in such Fee. Such Fee adjustments will take effect each July 1st. b. Refund Applications Based on 2008 Development:, Fees Paid. Current owners of development that paid development fees pursuant to Resolutions. No. 2008-086, 2008-087, 2008-088, 2008-089, 2008-090 and/or 2008=094 N.C.S. may apply for a refund of the difference, if any, between the total development fees that owner paid pursuant to the resolutions listed in this provision ("prior fees"), and the- total development fees applicable to that development under the resolution(s) that superseded the resolutions listed in this provision ("current fees"), if the total amount of prior tees paid exceeds thectotal amount of_current fees applicable to that development, subject to the following: 1. To be eligible for a refund, current development owners must certify in writing to the- City that the owner has not recovered or is not recovering from third parties such as tenants or others the amount of the prior fees paid or the amount by which the prior fees exceeds the current fees. 2. Any refunds pursuant to this provision shall only be paid from existing, un-obligated, unspent Fee revenue balances. The City will have. no obligation to pay refunds to any owner absent sufficient existing, 'un-obligated, unspent Fee revenue balance available for that purpose. 3. If existing, un=obligated, unspent Fed revenue balances are insufficient to cover eligible applications for refund, such eligible applications shall be paid refunds on a pro rata basis in accordance with applicable law. 14. Administrative Guidelines. The Council may; by resolution, adopt administrative guidelines to provide a3 procedures for calculation, credit, reimbursement, payment and other administrative.aspects of the Fee. Such guidelines may include procedures for • construction of designated Facilities-by developers. 15. Effective Date. This resolution shall become effective 60 days following its adoption in accordance with California Government Code section 66017, subdivision (a). 16. Severability. Each component of the Fee and all portions of this resolution are severable. Should any individual component of the Fee or other provision of this resolution be adjudged to be invalid and unenforceable, the remaining component or provisions'shall be and continue to be fully effective, and the Fee shall be fully effective exceptas to that component that has been judged'to be invalid. 17. Supersession/Repeal/Savings Clause. All resolutions and parts:thereof in conflict with the provisions of this resolution are superseded and repealed, effective on the effective dateof this resolution. 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. 2 ' EXHIBIT A CITY FACILITIES IMPACT FEE Land Use,Tyge• -Fee Amount. UnitofMeasurement Single Family Residential $5,399 Unit Multifamily Residential $3,635 Unit Accessory Dwelling $1,852 Unit Commercial $1,022 1,000 square feet of building space Office $978 1,000 square feet of building space Industrial $622 1,000 square feet of building space as ATTACHMENT 2 RESOLUTION REPLACINC-THE PARK LAND DEVELOPMENT IMPACT FEE RESOLUTION PROVIDING FORPARK IMPROVEMENTS FOR COMMUNITY AND NEIGHBORHOOD PARKS FOR FUTURE DEVELOPMENT WITHIN THE CITY OF PETALUMA, RESOLUTION NO. 2012-122 N.C.S. ADOPTED AUGUST 27, 2012, TO AMEND PROVISIONS GOVERNING HOUSING DEFINITIONS AND CREDIT FOR PRIOR USES RECITALS 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 Cityin 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 ("EIR") was prepared for the General Plan (State Clearinghouse #2004082065) pursuant to the California Environmental Quality Act ("CEQA") and certified by the City Council on April 7, 2008 by Resolution No. 2008-058 N.C.S.; and, WHEREAS, the General Plan area is shown on the land use maps contained in the General Plan; and, WHEREAS, the City Council last updated the City's Park Land Development Impact Fee for New Development by Resolution No. 2012-122 N.C.S., adopted August 27, 2012; and, WHEREAS, the General Plan designates a defined land Ilse 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 costs of acquiring and'improving public facilities, including community and neighborhood, park improvements, necessary to meet the demands of residents, employees, customers, and businesses; and, WHEREAS,_the General Plan and-its EIR analyze the impacts of development under the General Plan and proposed mitigation measures, including the creation of fee programs to require new development to pay for its proportional fair share of the cost of acquiring and improving public facilities necessary to meet the demands of new residents, employees, customers, and businesses for such facilities; 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-48 of Goal I-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 fair share of long-term infrastructure improvement costs as entitlements are granted" and program B:-"Initiate'design of long term infrastructure iniprOveinents in a timely manner to ensure their completeness to coincide with demand"; and, WHEREAS, Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Retain and expand city-wide park and recreation assets and programs to maintain-the quality of life they provide to the community"; and, WHEREAS, Policy 6-P-1 of Goal 6-G-I of Chapter 6 of the General Plan provides that the City should "Develop additional park land and recreational facilities in the City, particularly in areas lacking these facilities and where new growth is proposed, to meet the standards of required park acreage"; and, WHEREAS, Policy 6-P-3 of Goal 6=G-I of Chapter 6 of the General Plan provides that the City should "Connect city park with other public facilities, open spaces, employment centers, and residential neighborhoods by locating new recreation facilities in proximity to these uses and by fully integrating the parks system with the city's pedestrian: bicycle, and transit systems"; and, WHEREAS, Policy 6-P-5 of Goal 6-G-1 of Chapter 6 of the General Plan provides that "New park land or recreation facilities, beyond those identified in the General Plan, may be required as part of any development review-and entitlement process"; and, WHEREAS, Policy 6-P-6 of Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Achieve and maintain a park standard. of 5 acres per 1,000 residents (community park land at 3 acres per 1,000 population and neighborhood park land at 2 acres per 1,000 population) and an open space/urban separator standard of 10 acres per 1,000 population, in order to enhance the physical environment of the city and to meet the recreation needs of the community"; and, WHEREAS, Program (A) of Policy 6-P-7 of Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Review and, if necessary, revise the City's Municipal Code regarding the payment of cornmunity park impact fees to maximize-all opportunities for funding community and neighborhood park land, park improvements, and park. operation and maintenance through the development entitlement process"; and, • WHEREAS, Goal 6-G-2 of Chapter 6 of the General Plan requires-that the City should "Ensure park and recreational assets are maintained to allow safe access and use"; and, WHEREAS, Policy 6-P-17 of Goal 6-G-2 of Chapter 6 of the General Plan provides that "Recognizing that the:maintenance of City assets is a matter of civic pride, priority and safety, the City shall work with citizens, businesses; schools, organizations, and public agencies to fund an acceptable level of maintenance for all city-owned park and recreational facilities"; and, WHEREAS, Chapter 20.34 of the Petaluma Municipal Code, adopted pursuant to California Government Code Section 66477 (the "Quimby Act"), requires the dedication of park land as a part of residential development subject to the Quimby 'Act,.or the payment of a fee in lieu of dedicating property: The Quimby Act applies only to fees and/or dedications imposed on certain subdivisions subject to the Subdivision Map Act (California Government Code Section 64410 et seq.) to fund land acquisition costs for park or recreational puiposes. The Quimby Act does not apply to imposition of fees for park land improvements imposed on residential and non- residential development; and, WHEREAS, the City retained Municipal Resource Group, CLC to determine, based in part on the land use designations provided by the General Plan, the additional park improvements for community and neighborhood park lands that would be necessary to maintain the level of those services provided to the community and to fund new development's share of the costs of maintaining the;developed park acreage and improvements available to Petaluma; and, WHEREAS, Municipal Resource Group, LLC prepared the "City of Petaluma Mitigation Fee Act Nexus Report & Quimby Act In-Lieu Fee Report" ("Report"), dated August 14, 2012 ("Report"), a copy of which k on file in the Office of the City Clerk and hereby made a part of this Resolution by reference. The Report, in Chapter IV and Appendix Q, outlines the cost of park improvements for community and neighborhood park lands necessary to maintain the current levels of developed park lands provided to the community and thereby meet the demands of new residents for those services through build out under the General Plan. The Report estimates the cost in current dollars of the improvements, and calculates the fees necessary to raise the revenue necessary to pay for the improycment costs attributable to new development; and, WHEREAS, the Report, the General Plan andthe'General Plan FIR describe the impacts of contemplated future development on.existing public facilities in the City of Petaluma related to park improvements for conimunity.and neighborhood parks and analyze the need for such new park improvements for community and neighborhood parks required by future development within the City of Petaluma, described above and in Chapter IV and Appendix Q of the Report; and, WHEREAS, the Report estimates the cost in current dollars-of the Facilities, assigns the portion of those costs attributable'to new development, and calculates the fees necessary to raise the revenue necessary to pay for the portion of the costs of the Facilities attributable to new development; and, WHEREAS, The Park Land Development Impact Fee is not a "tax" as defined in Section 1, paragraph (e) of Article XIIIC of the California Constitution ("Proposition 26") because such fee imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided,to those not charged, and which does not exceed the reasonable cost to the City of providing the service or product; and/or the fee is imposed.for,a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the City of providing the service or product; and/or the fee is imposed for the reasonable regulatory costs to the'City of issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof and/or the-fee is imposed as a condition of property development; and, WHEREAS, the Park Land Development Impact Fee is not subject to the requirements of Article XII ID of-the California Constitution ("Proposition 218") concerning property related assessments and fees pursuant to Apartment Association of Los Angeles County v. City of Los Angeles (2001) 24 Cal.4th 830, in that such fee is not applicable to incidents of property ownership, but rather to actual use:of and need for City services and/or facilities; and, 22- WHEREAS, in'.accordance with Government Code Section 50076, fees and charges that do not exceed the reasonable cost of providing the service.or.regulatory activity for which the fees are charged and whieh are not levied for general revenue.purposes are not special taxes as defined in Article 3.5 of the Government'Code; and, WHEREAS, in accordance with Government Code.Section 66016, at least fourteen (14) days prior to the public meeting at which this Resolution was adopted, notice of the time and place of the meeting was mailed to eligible interested parties who filed written requests with the City for mailed notice of meetings oritiew 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 meeting at which the City Council considered the adoption of this Resolution; and, WHEREAS, ten (10) days advance notice of the public meeting at which the City Council considered adoption of this Resolution was given by publication in accordance with Government Code Section 6062a; and, WHEREAS, on September 10, 2012, the City Council adopted Ordinance No. 2444 N.C.S., which adds new Title 19, entitled "Development Fees," to the Petaluma Municipal Code ("Code") and amends, repeals and/or recodifies various provisions authorizing the City's development-related fees, including the City Facilities Development Impact Fee, Park Land Development Impact Fee, Open Space Land Acquisition Fee, Park Land:Acquisition Fee (Non- Quimby Act), Park Land Acquisition Fee (Quimby Act), Traffic Development Impact Fee, Water and Wastewater Capacity FeeS and the Commercial Development Housing Linkage Fee; and, FINDINGS WHEREAS, the City Council finds as follows: A. After considering Chapter IV and Appendix Q of the Report, the testimony received at the noticed'public meeting at.which this resolution waS adopted, the accompanying staff report; the General Plan, the General Plan EIR, and all correspondence received at or prior to the public meeting (the "Record"), the Council approved and adopted the Report by Resolution No. '2012,122 N.C.S:; and the City 'Council further found that the future development in the City of Petaluma will generate the need for the Facilities, and the Facilities are consistent with the City's General Plan. B. The City currently provides improved community and neighborhood park facilities to,the community and the fee set forth in this resolution will be used to maintain current service levels. As such, the City Park Land Development Impact Fee as it relates to development within the City is not a "project" within the meaning of CEQA (Pub. Res. Code §21080(b)(8)(D)). C. In adopting this Resolution, the City Council is exercising its powers under Article XI, § 5-and 7 of the California Constitution, Chapter 5 of Division 1 of the Government Code ("Mitigation Fee Act"), commencing with Section 66000, Section 54 of the City of Petaluma Charter, and Chapter 19.16 of the Petaluma Municipal Code, collectively and separately. .2& D. The Record establishes: In accordance with Section 66000, subdivision a, paragraph I of the Mitigation Fee Act, the purpose of the Park Land Development Impact Fee ("Fee"), set forth in this resolution, as specified in Chapter IV of the Report, is to provide funding to achieve the City's goal of maintaining existing Service levels and to provide adequate community and neighborhood park facilities to meet the broad range of needs of Petaluma residents and employees as established in the General Plan. Existing standards for community and neighborhood parks have been identified which have been used as the basis to maintain these standards for future development and to mitigate the impacts caused.by 'future development in the City. 2. In accordance with Section 66000, subdivision a, paragraph 2 of the Mitigation Fee Act, the Fee collected pursuant to this resolution shall be used to construct the Facilities as described in the Report and the General Plan and the City's budget for capital improvements ("the Facilities"). The Facilities, which arespecifically described in:Chapter IV and Appendix Q of the Report, include the following: • Construction of 43.63 acres of community parks • Construction of 29.01 acres of neighborhood parks 3. In accordance with section 66000, subdivision a, paragraph. 3 of the Mitigation Fee Act, there is a reasonable relationship between the Fee's use (to pay for the construction of the Facilities) and the type of development for which the Fee is charged.in that the fee will be applied all development .in the City — including residential, commercial, office, and industrial development projects, which will generate new demands for park facilities. The community park improvements and neighborhood park improvements constructed with the.proceeds of the Fee will address and mitigate_ the: additional impacts and demands created by residential and non-residential development projects. 4. In accordance with Section 66000, subdivision a, paragraph 4, there is a reasonable relationship between thenecd'forthe Facilities and the types of development projects on which the Fee is imposed in that the Fee will be applied to new development in the City of Petaluma — both residential and non-residential. These development projects will generate new residents and employees who live, work,-and/or shop in Petaluma'and Who generate or contribute to the demand for park improvements, because the new residents and employees will use community and neighborhood parks developed with the improvements and the same standard-of improvements will be provided to new residents and employees as to existing residents and employees. 5. In accordance with Section 66000, subdivision b of the Mitigation Fee Act, there is a reasonable relationship between the amount of the Fee and the cost of the Facilities, or the portion thereof attributable to the development in the City on which the Fee is imposed in that the Fee has been calculated by apportioning'the cost of constructing new community and, neighborhood parks to each type ofnew residential unit, and to the "resident equivalent" of each employee generated by commercial, office and industrial development projects: The full cost, of the Facilities has been allocated to the Fee because the: entire cost will be incurred to provide the same standard of park improvements to future residents and employees as is provided to existing,residents and employees. 6. The cost estimates set forth in the Report 'are reasonable estimates for construetiing or acquiring the Facilities, and the Fees expected to be generated by future development will not exceed the projected cost of constructing and/or acquiring the Facilities. 7. The method of allocation of the Fee to a particular development bears a tair_relationship.and is roughly proportional to each development's burden on and benefits from the Facilities to be funded by the Fee, in that the Fee is calculated 'based on the number of residents or employees each particular development will generate. 8. The Report is a,detailed analysis of how public services will be affected by development in the City and the public facilities required to accommodate that development. 9. The,Fee is consistent with the General Plan and, pursuant to Government Code Section 65913.2; the City Council .has considered the effects of the Fee with respect to the City's housing needs as established in the housing element oldie General Plan. 10. The Fee amounts set forth in Exhibit A include the reasonable costs of administration and compliance of the Fee program with the requirements of the Mitigation Fee Act and other applicable law. The Fee program and adniinistration cost is calculated to be approximately 2% of the total Fee as indicated in Chapter VII of the Report. ADOPTION OF FEE NOW, THEREFORE; BE IT RESOLVED, 1. Definitions. a. `Accessory Dwelling" shall mean a second unitwhich meets the standards set forth in, Section 7:030 of Chapter 7, "Standards for Specific Land Uses" of the City of Petaluma Implementing Zoning Ordinance ("IZO"), as modified by any subsequent amendment or successor zoning ordinance and/or .development code provision adopted by the City which defines Accessory Dwelling, second unit or second dwelling unit." b. "Commercial" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, No. 2300.N.C.S., oranysuccessor ordinance; for facilities•forthe purchase and sale of commodities and services and the sales, servicing, installation, and repair of such commodities and services and..other uses incidental to these activities. Commercial land uses include but are.not limited to: apparel and clothing stores; auto dealers and malls;.auto accessories stores; banks and savings and loans; beauty salons;:book stores; discount stores and centers; dry cleaners; 'drug stores; eating and drinking establishments; furniture stores and outlets; general merchandise stores; hardware ,stores; home furnishings and improvement centers; laundromats; liquor stores; service stations; shopping centers; supermarkets; bicycle shops; cameras and photographic supply stores; convenience stores; department stores; drug stores and pharmacies; jewelry stores; luggage and leather goods stores; sporting goods and equipment stores; stationery stores; collectible stores; second hand goods stores; religious goods stores; hobby materials stores; small wares.stores; plant sales; bowling alleys; coin-operated amusement arcades; dance halls, clubs and ballrooms; electronic game arcades; ice skating and roller skating establishments; pool and billiard rooms; amusement and theme parks; go-cart tracks;,golf driving ranges; miniature golf courses; water slides; banks and trust companies; credit agencies; holding' companies; lending and thrift institutions; securities/commodity contract brokers and dealers; fuelingstationsand.gas.stations; security and commodity exchanges; vehicle finance leasing agencies; restaurants, cafés and coffee shops; and movie theatres and civic theatres. c. "Developed" and "Development"shall mean the construction or alteration of or addition to, other than by the,City, of any building or structure•within the City of Petaluma. d. "Facilities" shall include those municipal public facilities as are described in the Report related to providing general improvements to community and neighborhood park lands. "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 (I) that there is a reasonable relationship between development within' the City of Petaluma and the need for the alternative facilities; (2) that the alternative facilities are comparable to the 'facilities in the Report; and (3) that the revenue from the Fee will be used only to pay-new development's fair and proportionate share of the alternative facilities. e. "Industrial" shall.mean any development constructed or to be constructed on land having a General. Plan 2025 land use or zoning designation as established in the Implementing' Zoning Code, Ordinance No. 2300 N.C.S., or any successor ordinance, for the manufacture, production, assembly, and processing of consumer goods, uses incidental to those activities, and research, development and warehousing. Industrial land uses include, but are not limited 'to: assembly; contractor's storage yards; fabrication; lumber yards; manufacturing; outdoor stockyards and service yards; printing; processing; warehouses and distribution centers; wholesale and heavy commercial enterprises; clothing, fabric and other product .manufacturing; electronics, equipment, and appliance manufacturing; metal products fabrication, machine and welding shops; paper product manufacturing; food and beverage product manufacturing; small-scale 'manufacturing; lumber and wood product manufacturing; 31 machinery manufacturing; motor vehicle and transportation equipment manufacturing; stone and cut stone product manufacturing; structured clay and pottery product manufacturing; processing of building materials, chemicals, fabricated metals, paper products, machinery; textiles, and/or equipment; and collection, sorting and processing enterprises. I'. "Mixed Development" shall mean a development that includes more than one of the types of developmentdefined in this Section 1. Mixed developments may combine residential types of development (Single Family and Multifamily), non-residential types of development (Commercial, Industrial, and Office), or a combination of residential and non-residential types of development. g. "Multifamily Residential" shall mean any residential Development that does not qualify as detached single family dwelling unit Development as defined in the Report, as adopted by the City. h. "Office" shall mean any development constructed or to be constructed on land having,. a General Plan 2025 land, use or zoning designation, as established in the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S , or any successor ordinance, for general business offices, medical and professional offices, administrative or headquarters offices for large wholesaling or manufacturing operations, and other uses incidental to these activities. Office land uses include but are not limited to: administrative headquarters; business parks; finance offices; insurance offices; legal offices; medical and health services offices; office buildings; professional and administrative offices; professional associations; real estate offices; and travel agencies. "Single Family Residential" shall mean detached, single-family dwelling unit development as defined in the Report, as adopted by the City. 2. Park Land Development Impact Fee Imposed. Pursuant to the Mitigation Fee Act and Chapter 19.16 of the City of Petaluma Municipal Code, a Park Land Development Impact 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 each type of development set forth in Exhibit A, which is attached to and made a part of this Resolution, including each portion of such Development within Mixed Development. 3. Time for Imposing Fee. In accordance with Government Code Section 65961, the Fee for residential 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 approval of 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 f0r payment of the Fee for all development, including Single Family Residential and Multiple Family Residential subdivisions, shall be as specified in Section 4, below. 3� 4. Time for Fee Payment. a. In accordance. with Government Code Section 66007, the Fee shall be charged and paid for each residential development upon the date of final inspection or issuance of the certificate of Occupancy for such residential development, whichever is earlier: However, if the.Fee is to reimburse the City-for expenditures previously made, or if the City determines that the Fee will be collected for Facilities for which an account has been established and funds appropriated and for which the City has adopted a proposed construction schedule prior to issuance of the building permit for such residential development, then the Fee shall be charged and paid upon issuance of the building permit for suet) residential development. However, with respect to a residential. development proposed by a nonprofit housing developer in which at least 'forty-nine percent (49%) of the total units are reserved for occupancy by lower income households, as defined in Health and Safety Code Section 50079.5, at an affordable rent, as defined in Health and Safety Code Section 50053, the payment procedures described in Government Code Section 66007(b)(2)(A)-(B) shall apply. b. The Fee shall be charged and paid for each non-residential Development upon issuance of the building permit for such non-residential Development. c. The Fee shall be charged and.paid for each Mixed Development upon the times specified in this Section 4 that apply to such Mixed Development. For example, if a Mixed Development includes residential Development and non-residential Development, and the Fee'is to reimburse the City for expenditures previously made; or the City has made the required determination to permit requiring payment of the Fee upon.issuance of the building permit,. and the procedures in Government Code section 66007(b)(2)(A)-(B) do not apply, the Fee,as applicable to the entire mixed development shall be paid upon issuance of the building permit for the Mixed Development. If a Mixed Development includes residential and non-residential development, and the Fee is not to reimburse the City for expenditures previously made or the City. has not made the, required determination to permit requiring payment of the Fee upon issuance of the building permit, the Fee as to the residential portion of the mixed development shall be paid upon the earlier Of the date of final inspection or issuance of the certificate of occupancy for such residential portion, and the Fee as to the non-residential portion of the Mixed Development shall be paid upon issuance of the building permit for such non-residential portion. 5. Amount of Fee. a. The amount of'the Fee for residential and non-residential development shall be as set forth in Exhibit A attached hereto and incorporated herein. b. The amount of the Fee for Mixed Development shall be the sum of.the following, as applicable: 3 I. The applicable amount per unit pursuant.to'Section.5(a), above, for each residential development within a Mixed Development. 2. The applicable amount per 1,000 square feet of Development pursuant to Section 5(a), above, for each nonresidential Development or portion of such Development within a Mixed Development. c. Any non-residential development on property on which a building or structure was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution that is applicable to the new development or use, less the fee applicable to the prior development or use, so long as Such prior use was in existence at the time of adoption of General Plan 2025: d. Any development on any parcel any portion of which is located within one half-mile of any portion of a parcel identified as a possible future location for a SMART Rail Station on which parcel proposed for development a building or structure was demolished or; on which the use of an existing structure changes to a more intensive use;shall pay a prorated fee equal to the fee calculated pursuant to this resolution .that is applicable to the new development or use, less the fee applicable to the prior development or use; solong as such' prior use was in existence at the time of adoption of General Plan 2025. 6. Designation of Developments. Nonresidential developments, other than Mixed Developments (but including non-residential developments within Mixed Developments) that are.not within the definition of a use defined in this resolution shall be assigned to one of the defined use categories by the City Manager for purposes of imposition and charging of.theT-Fcc, The City Manager shall assign such categories as consistently as possible with the definitions of such categories established pursuant to this resolution or as later amended by the City Council. The City Manager may also designate Development as Multifamily or Single-Family based on the actual number of dwelling units per structure within the development. 7. Inapplicability of'Fee. The Fee shall not apply to: a. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a.single-family.residential unit-or another unit is added to an existing multi-family residential unit., b. Any replacement or reconstruction of an existing residential structure that has been destroyed or demolished, if the building-permit for reconstruction is obtained within one year after the building was destroyed or demolished. This subsection shall not apply if the replacement or reconstruction increases the square footage of the structure by 50 percent (50%) or niore. 3Y c. Any replacement or reconstruction.of an existing non-residential structure that has been destroyed or demolished, if the building permit for reconstruction is obtained within one year:after the building was destroyed or demolished, there is no change in the land use designation of the property, and the square footage of the replacement building does not exceed the square footage of the building that was destroyed or demolished. d. Any addition to'an existing non-residential structure of 500 square feet or less. e. Any public or.quasi-public development on lands.designated Public/Semi- Public or Education on the General Plan Land Use Map, as of the effective date of the Fee, so long as such development is intended to serve development in the City and does not itself generate a need for additional public-infrastructure needed to serve.new development, as in the way new residential development generates new residents requiring City services, and new non-residential development generates new employees in the City using City services. f. Low and/or moderate income senior citizens housing projects owned and developed by a charitable, nonprofit organization recognized as such by the United States Internal Revenue Service and the State of California Franchise Tax Board. g. The City Council, .in its discretion, may determine that the Fee is inapplicable to certain development'constructed or to be constructed by a public entity on land having an appropriate General Plan land use designation provide that the City Council finds that such inapplicability is in the interest of the public health, safety and/or welfare, for reasons specified-in the findings. Such reasons May include, but are not.limited to, that the Fee as it would apply to such development by a public entity will be sufficiently recovered in whole or in part from residential development, the residents of which may constitute the primary users of the public entity development. 8. Use of Fee Revenue. 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 that they generate. Such revenues and interest shall be used only for the Facilities and the purposes for which the Fee was collected, which arc the following: a. To pay for design, engineering, right-of-way or land acquisition and consti•uctiort and/or acquisition of the- Facilities and reasonable costs of outside consultant studies related thereto; b. To reimburse the City for the Facilities constructed by the City with funds from other sources including funds from other public entities, unless the City funds were obtained from grants or gifts intended by the grantor to be used for the Facilities. 35— c. To reimburse developers who have designed and constructed any of the Facilities with prior City approval and"have entered into an agreement, as provided in,Section 9, below;.and d. 'Fo pay for and/or reimburse costs of program development and ongoing. administration and maintenance of the Fee program, including, but not limited to; the cost of studies, legal costs, and other costs of updating the Fee. 9. 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 in 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 pr'i'or to construction of one or more of the Facilities, the City shall provide thedeveloper a credit in accordance with the following: a. Credit Amount. The credit shall be in the amount of the lowest bid received for constructionofthe facility, as approved by the City Engineer. 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 the particular facility, as subsequently adjusted pursuant to Sections 13 and 14 of this Resolution prior to issuance of .the building perinit for thatfacility. 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. Developers may apply credit given pursuant to this section 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 or square footage.of building space(Or combination thereof for a Mixed Use Development) to determine the amount of credit which can 'be applied against the Fee for each unit of measurement and, if the credit per unit of measure.is less than the Fee per.unit of measurement, the developer shall pay the difference for each residential unit or square footage of building space. 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 3� constructing the,facility that resulted in an excess credit was not passed on to homeowners, and indemnifying the .City .from land-owner claims for reimbursement under the Mitigation Fee Act,. and Section 66001 in particular. If remaining Fee revenues alter 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. 10. Standards. The standards upon which the need for the Facilities is based are the standards of the City, including the standards contained in the General Plan and its FIR and those City standards reflected in the Report. 11. Periodic Review. a. During each fiscal. year, the City Manager shall prepare a report for the City Connell, pursuant to Government Code Section 66006, identifying the balanee.of Fee revenues in the Fee account. - b. Pursuant to Government Code Section 66002, the City Council shall also review, as part of any adopted City Capital Improvement Plan each year, the approximate location, size, time of availability and estimates of cost for all Facilities to be financed with the Fee. The estimated costs shall be adjusted in accordance with appropriate indices of inflation. The City Council shall make findings identifying the purpose to which the existing Fee revenue balances are to be put and 'demonstrating a reasonable relationship between the Fee and the purpose for which it is charged. 12. Subsequent-Analysis and Revision of the Fee. The Fee set forth 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 remain reasonably related to the •impacts of deyelopthent within the City of Petaluma.and•areas included in the City's General Plan. The City Council may revise the Fee to. incorporate findings and conclusions of further studies and any standards in General Plan and/or the General Plan EIR, as well as increases due to inflation and increased construction costs. 13. Fee Adjustments. a. Annual CPI Adjustments. The Fee established will escalate or decrease annually by the same percentage the latest "Engineering News Record Construction Cost Index-20 City Average" ("Index") annually escalates or decreases. The adjustment shall be based on a comparison of the most recent Index:to the Index in the month ofadoption of the Fee, or the Index used for the prior adjustment of the Fee. The Finance Director shall compute the increase or decrease in such Fee. Such Fee,adjustments will take effect each July 1st. b. Refund Applications Based on 2008 Development Fees Paid. Current owners of development that paiddevelopment fees pursuant to Resolution No. 2008-093 N.C.S. may apply for a refund of the difference, if any, between the total development fees that owner paid pursuant to said resolution ("prior fee"), and the resolution(s). that superseded the resolution listed in this provision ("current fee"), if the total amount of prior fees paid exceeds the total amount of current fees applicable to that development, subject to the following: I. To be eligible for a refund, current development owners must certify in writing to the City that the owner has not recovered or is not recovering from third parties such as tenants or others the amount of the prior fees paid or the amount by which the prior fees exceeds the current fees. 2. Any refunds pursuant to this provision shall only be. paid from existing, un-obligated, unspent Fee revenue balances. The City will have no obligation to pay refunds to any owner absent sufficient existing, un-obligated, unspent Fee revenue balance available for that purpose. 3. If existing, un-obligated, unspent Fee revenue balances are insufficient to cover eligible applications for ,refund, such eligible applications shall be paid refunds on a pro rata basis in accordance with applicable law. 14. Administrative Guidelines. The Council may, by resolution, adopt administrative guidelines to provide procedures for' calculation, credit, reimbursement, payment and other administrative aspects of the Fee. Such guidelines may include procedures for construction of designated Facilities by developers. 15. Effective Date. This resolution shall become effective 60 days following its adoption in accordance withiCaliforniaGovernment Code section 66017, subdivision (a). 16. Severability. Each component of the Fee and all portions of this Resolution are severable. Should any individual component of the Fee or other provision of this Resolution be adjudged to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective; and the Fee shall be fully effective except as to that component that has been judged to be invalid. 17. Supersession/Repeal/Savings Clause. 38 All resolutions and parts thereof in conflict with-the provisions of this resolution are superseded, and repealed, effectiveon the effective date of this resolution. 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,.shallbe deemed to remain in full force for the purposeof sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal. 3? EXHIBIT A PARK LAND DEVELOPMENT IMPACT FEE • LandUseType Fee.Amount Unit of Measurement Single Family Residential $5,212 Unit Multifamily Residential $3,510 Unit Accessory Dwelling $1,788 Unit Commercial $987 1,000 square feet of building space Office $944 1,000 square feet of building space Industrial $601 1,000 square feet of building space ya ATTACHMENT 3 RESOLUTION REPLACING THE CURRENT PARK LAND ACQUISITION FEE RESOLUTION FOR NON-QUIMBY ACT DEVELOPMENT PROJECTS TO PROVIDE FOR PARK LAND ACQUISITION NECESSARY TO SERVE FUTURE DEVELOPMENT WITHIN THE CITY OF PETALUMA , RESOLUTION NO. 2012-124 N.C.S., ADOPTED AUGUST 27, 2012, TO AMEND PRIVISIONS GOVERNING HOUSING DEFINITIONS AND CREDITS FOR PRIOR USES RECITALS WHEREAS, the City of Petaluma: General Plan 2025 ("General Plan") outlines future land uses within theCity 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 ("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. 2008-058 N.C.S.; and, WHEREAS, the General Plan area is shown on the land use maps contained in the General Plan; and, WHEREAS, the.City Council last updated the City's Park Land Acquisition Fee (Non- Quimby Act Development Projects) for New Development by Resolution No. 2012-124 N.C.S., adopted August 27, 2012; 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 costs of acquiring and improving public facilities, including community and neighborhood park improvements, necessary to meet the demands of residents, employees, customers, and businesses; and, WHEREAS, the General Plan and its EIR analyze the impacts of development under the General Plan and proposed mitigation measures, including the creation of fee programs to require new development to pay for its proportional fair share of the cost of acquiring and improving public facilities necessary to meet the demands of new residents, employees, customers, and businesses for such facilities; 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, 17/ WHEREAS, Policy 1.-P-48 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 fair' 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 to coincide with demand; and, WHEREAS, Goal 1-0-1 of Chapter 1 of the--General Plan provides that the City should "Maintain a balanced land use program that meets the long-tenni residential, employment, retail, institutional, education, recreation, and open space needs of the.community"; and WHEREAS, Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Retain and expand city-wide parkland recreation assets and programs to maintain the quality of life they provide to the community"; and, WHEREAS, Policy 6-P-I of Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Develop additional parkland and recreational facilities:in the city, particularly in areas lacking these facilities and where new growth isproposed, to meet the standards of required park acreage"; and, WHEREAS, Policy 6-P-3 of Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Connect city park with other public facilities, open spaces, employment centers, and residential neighborhoods by locating new recreation facilities in proximity to these uses and by fully integrating the parks system with the city's pedestrian, bicycle, and transit systems"; and, WHEREAS, Policy 6-P-:5 of Goal 6-G-I of Chapter:6;of the General Plan provides that "New parkland or recreation facilities, beyond those identified in the General Plan, may be required as part of any development review and entitlement process";and, WHEREAS, Policy 6-P-6 of Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Achieve and maintain a park standard of 5 acres per 1,000 residents (community park land at 3'acres per 1,000 population and neighborhood-park land at 2 acres per 1,000 population) and an open-space/urban separator standard of 1-0 acres per 1,000 population, in order to enhance the physical environment of the city and to-meet the recreation needs of the community"; and, WHEREAS, Program (A) of Policy 6-P-6 of Goal 6-G=1 of Chapter 6 of the General Plan provides that the City should "Revise,the City's park in-lieu fees/dedication requirements to match.the General Plan standard of 5 acres per 1,000 residents (community park land at 3 acres per 1,000 population and neighborhood park land at 2 acres per 1,000 population) '; and, WHEREAS, Program (A) of Policy- 6-P-7 of Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Review and, if necessary, revise the City's Municipal Code regarding the payment of community park impact fees to maximize all opportunities for funding community and neighborhood parkland, park improvements, and park operation and maintenance through.the-developmententitlenient process"; and, WHEREAS, Goal 6-G-2 of Chapter 6 of the General Plan requires that the City should "Ensure park and recreational assets are maintained to allow safe access and use"; and, /f WHEREAS, Policy 6-P-1.7 of Goal 6-G-2 olChapter 6 of the General Plan providesthat "Recognizing that the maintenance of City assets is a matter of civic pride, priority andsafety, the Cityshall'work with citizens; businesses, schools, organizations, and public agencies to fund an acceptable level of maintenance for all city-owned park and recreational facilities'; and, WHEREAS; Chapter 20.34 of the Petaluma Municipal Code, adopted pursuant to California Government Code Section 66477 (the "Quimby Act"), requires the dedication of parkland for residential development subject to the Quimby Act, or the payment of a fee in lieu of dedicating property. The Quimby Act applies only to fees and/or dedications imposed on certain subdivisions subject to the Subdivision Map Act (California Government Code Section 64410 et seq.) to fund land acquisition costs for park orrecreational purposes. The Quimby Act does not apply to imposition of fees for park land acquisition imposed on development not governed by the Quimby Act (such as existing residential lots, minor subdivisions that do not seek building permits within four years of receiving parcel map approval, or commercial, office and industrial projects); and, WHEREAS, residents who'will occupy future residential units that are not subject to the Quimby Act will nonetheless create demand for park land space; and, WHEREAS, employees who work in future commercial, office and industrial projects will also create demand for park'land space for lunchtime activity and picnics, before and after work activities, and sports leagues and other recreational activities; and, WHEREAS, the City retained Municipal Resource Group, LLC to determine, based in part on the land use designations provided by the General Plan, the acquisition of park land that would be necessary to maintain the level of those services provided to the community and'to fund new developments share iof costs of acquiring and constructing the park land acreage necessary to maintain the existing, ratio of park land acreage to Petaluma's service population; and, WHEREAS, Municipal Resource Group, LLC prepared the "City of Petaluma Mitigation Fee Act Nexus Report & Quimby Act In-Lieu Fee Report" ("Report"), dated August 14, 2012 ("Report"), a copy of which is on file in the Office of the City Clerk and hereby made a part of this Resolution by reference. The Report, in Chapter VI and Appendix R, outlines the cost of park land necessary to maintain the;current levels of park land provided to the community and thereby meet the demands of new residents for such park land through build out under the General Plan. The Report estimates the cost in current dollars of acquiring the amount of suitable park land to meet the General Plan standard, and calculates the fees necessary to raise the revenue necessary to pay for that cost attributable to new development; and, WHEREAS, the Report, the General Plan and the General Plan HR describe.the'impacts of contemplated future development on existing public facilities in the City of Petalwria related to maintaining the General Plan park land standard and analyze the need for new park land acquisition required by future development within the City of Petaluma, described above and in Chapter VI and Appendix R of the Report; and, WHEREAS, the Report estimates the cost in current dollars of the required additional park land, assigns those costs attributable to new development, and calculates the fees necessary to raise the revenue necessary to pay for the park land acquisition costs attributable to new development; and, VS WHEREAS, the Report demonstrates the appropriateness of adopting a fee based on current estimates of the need for and cost,of acquiring;park land needed to accommodate new development including(1) an estimate of the increase in the City's service population by the.year 2025, the planning horizon of the General Plan, (2) the amount of park acreage that will need to be developed to meet th'e General Plan standard; and (3) the cosi of acquiring and developing the park land identified as necessary to meet the demands of the estimated increases in the City's service population by 2025; and, WHEREAS, the Park Land Acquisition Fee is not a "tax" as defined in Section 1, paragraph (e) of Article XIIIC of the California Constitution ("Proposition 26") because such fee is imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the City of providing the service or product; and/or the fee is imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the City of providing the service or product; and/or the fee is imposed for the reasonable regulatory costs to the City of issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof; and/or.the fee is imposed as a condition of property development; and, WHEREAS, the Park Land Acquisition Fee is not subject to the requirements of Article XIIID of the California Constitution ("Proposition 218") concerning property related assessments and fees pursuant to Apartment Association of Los Angeles County v. City of Los Angeles (2001) 24 Cal.4" 830, in that such fee is not applicable to incidents of property ownership, but rather to actual use of and need for City services and/or facilities; and, WHEREAS, in accordance with Government Code Section 50076, fees and charges that do not exceed the reasonable,cost of providing the service or regulatory activity for which the fees are charged and which are not levied for general revenue purposes are not special taxes as defined in Article 3.5 of the Government Code; and, WHEREAS, in'accordance with Government Code Section 66016, at least fourteen (14) days prior to the public meeting at which this Resolution ,was adopted, notice of the time and place of the meeting 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 meeting at which the City Council considered the adoption of this Resolution;,and, WHEREAS, ten (10) days advance notice of the public meeting at: which the City Council considered adoption of this resolution was given by publication in accordance with Government Code Section 6062a; and, WHEREAS, on September 12, 2012, the City Council adopted Ordinance No. 2444 N.C.S. which adds new Title 19; entitled "Development Fees," to the Petaluma Municipal Code ("Code") and amends, repeals and/or recodities various provisions authorizing the City's development-related fees, including the City Facilities Development impact Fee, Park Land Development Impact Fee, Open Space Land Acquisition Fee, Park Land Acquisition Fee (Non- Quimby Act), Park Land Acquisition Fee (Quimby Act), and Traffic Development Impact Fee. yY FINDINGS WHEREAS, the City Council,finds as follows: A. After considering Chapter VI and Appendix R of the Report, the testimony received at the noticed public meeting rat which this resolution was adopted, the accompanying staff report, the General Plan, the General Plan EIR, and all correspondence received at or prior to the public meeting (the "Record"), the Council approved and adopted the Report by Resolution No. 2012-124; and the City Council further found that the future development in the City of Petaluma will generate theneed for the Facilities, and the•Facilities are consistent with the City's General Plan. B. The City currently provides park land to Petalumaresidents and employees at the ratio of five acres of park land per 1,000 population, and the fee set forth in this resolution will be used to maintain current service levels. As such, the Park Land Acquisition Fee as 'it relates to development within the City is not a "project" within the meaning'of CEQA (Pub.Res. Code §21,080(b)(8)(D)). C. In adopting this resolution, the Council is exercising its powers,under Article XI, §§5 and 7 of the California Constitution, Chapter 5 of Division 1 of the Government Code ("Mitigation Fee Act"), commencing with Section 66000, Section 54 of the City of Petaluma Charter, and Chapter 19.12 of the Petaluma Municipal Code, collectively and separately. D. The Record establishes: 1. In accordance with Section 66000, subdivision a, paragraph 1 of the Mitigation Fee Act,the purpose of the Park Land Acquisition Fee (Non- Quimby Act) (the "Fee"), set forth in this resolution, as specified in Chapter V of the,Report, is to provide funding"to achieve the City's goal of maintaining existing service levels and to provide adequate park land for Petaluma residents and employees as established in the General Plan. Existing standards for park land have been identified which have been used as the basis to maintain these standards for future development and to mitigate the impacts caused by future development in the City., 2. In accordance with Section 66000, subdivision a, paragraph 2 of the Mitigation Fee Act, the Fee collected pursuant to this resolution shall be used to purchasepark land as described in the Report.and the General Plan ("the Facilities"). The Facilities, which are specifically described in Chapter VII and Appendix T of the Report, include the following: • Acquisition of 103 acres of park land. 3. In accordance with section 66000, subdivision a, paragraph 3 of the Mitigation Fee Act, there is a reasonable relationship between the Fee's use. (to pay for the acquisition of the Facilities) and the type of development for which the Fee is chargedin that the fee will be applied all development in the City — including residential, commercial, office, and industrial development projects, which will generate new demands for park land amenities. The park land acquired with the proceeds of the Fee (Tc will address-and mitigate the additional impacts and demands created by residential and non-residential development projects. 4. In accordance with Section 66000, subdivision a, paragraph 4, there is a reasonable relationship between the need for the Facilities and the types of development projects on which the Fee is unposed in that the Fee will be applied to new development in the City of Petaluma—both residential and non-residential. These development projects will generate new residents and employees who live, work, and/or shop in Petaluma and who generate or contribute to the demand for park land, because the new residents and employees will benefit from park land acquired and the same standard of park land will be provided to new resident and employees as to existing residents and employees. 5. In accordance with Section 66000, subdivision b of the Mitigation Fee Act, there is a reasonable relationship between the amount of the Fee and the cost of the Facilities, or the portion thereof attributable to the development in the City on which the Fee is imposed in that the Fee has been calculated by apportioning the cost of acquiring new park land to each type-of new residential unit, and to,the "resident equivalent" of each employee generated by commercial, office and industrial development projects: The full cost of the Facilities has beenallocated to the Fee because the entire cost will be incurred to provide the same standard of park land to future residents and employees as is provided to existing residents and employees. 6. The cost estimates set forth in the Report•are reasonable estimates for acquiring the Facilities, and the Fees expected to be generated by future development will not exceed the projected cost of acquiring the Facilities. 7. The method of allocation of the Fee to a particular development bears a fair relationship and is roughly proportional to each development's burden on and-benefits from the.Facilities to be funded by the Fee, in that the Fee is calculated based on the number of residents or employees each particular development will generate. 8. The Report is a detailed analysis of how public services will be affected by development in the City and the public facilities required to accommodate that development. 9. The Fee is consistent with the General Plan and, pursuant to Government Code Section 65913.2; the City Council has considered the effects of the Fee with respect to the City's-housing needs as established in the housing element of the General Plan. 10. The Fee amounts set forth in Exhibit A include the reasonable costs of administration and compliance of the Fee program with the requirements of the Mitigation Fee Act and other applicable law. The Fee program and administration cost is calculated to be approximately 2% of the total Fee as indicated-in Chapter VII of the Report. y6 ADOPTION OF FEE NOW, THEREFORE, BE IT RESOLVED, Definitions. a. "Accessory Dwelling" shall mean a second unit which meets the standards set forth in Section 7.030 of Chapter 7, "Standards for Specific Land Uses" of-the City of Petaluma Implementing Zoning Ordinance ("IZO"), as modified 6y,any subsequent,amendment or successor zoning ordinance and/or development code provision adopted by the City which defines Accessory Dwelling, second unit or seconddwelling unit." b. "Commercial' shall mean any development constructed or to be constructed on land having a General 'Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, No. 2300 N.C.S., or any successor ordinance, for facilities for the purchase and sale of commodities and services and the sales; servicing, installation, and repair of such commodities and services and other uses incidental to these activities. Commercial land uses include but are not limited to: apparel and clothing stores; auto dealers and malls; auto accessories stores; banks and savings and loans; beauty salons; book stores; discount stores and centers; dry cleaners drug stores; eating and drinking establishments; furniture stores and outlets; general merchandise stores; hardware stores; home furnishings and improvement centers; laundromats; liquor stores; service stations; •shopping centers; supermarkets; bicycle shops; cameras and photographic supply stores; convenience stores; department stores; drug stores and pharmacies; jewelry stores; luggage and leather goods stores; sporting goods and equipment stores; stationery stores; collectible stores; second hand goods stores; religious,goods stores; hobby materials stores; small wares stores; plant sales; bowling alleys; coin-operated amusement arcades; dance halls, clubs and ballrooms; electronic game arcades; ice skating and, roller' skating establishments; pool and billiard rooms; amusement and theme parks; go-cart tracks; golf driving ranges; miniature golf courses; water slides; banks and trust companies; credit agencies; holding companies; lending and thrift institutions; securities/commodity contract brokers and dealers; fueling stations and gas stations; security and' commodity exchanges; vehicle finance leasing.agencies; restaurants, cafes and coffee shops; and movie theatres and civic theatres. c. `Developed" and "Development" shall mean the construction or alteration of oraddition to, other than by the City; of any building or structure within the City of Petaluma. d. "Facilities shall include those municipal public facilities as are described in the Report related to providing general improvements to community andneighborhood park lands. "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 (1) thatthere is a reasonable relationship between development within the City of Petaluma and the need for the alternative facilities; (2) that the alternative facilities are v7 • comparable to the facilities in the,.R'eport;.and (3.) that the revenue from the Fee will be used only to.paynew development's fairand proportionate share of the alternative facilities: e. "industrial".shall.mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation as established in the Implementing Zoning Code, Ordinance No. 2300 N.C.S., or any successor ordinance, for the manufacture, production, assembly, and processing of consumer goods, uses incidental 'to those activities; and research, development and warehousing, Industrial land uses include, but are not limited to: assembly; contractor's storage yards; fabrication; lumber yards; manufacturing; outdoor stockyards and service yards; printing; processing; warehouses and distribution centers; wholesale and heavy commercial enterprises; clothing, fabric and other product manufacturing; electronics, equipment, and appliance manufacturing; metal products fabrication, machine and welding shops; paper product manufacturing; food and beverage product manufacturing; small-scale .Manufacturing; lumber and wood product manufacturing; machinery manufacturing; motor vehicle and transportation equipment manufacturing; stone and cut stone product manufacturing; structured clay and .pottery product manufacturing; processing of building materials, chemicals, fabricated metals, paper products, machinery, textiles, and/or equipment; and collection, sorting and processing enterprises. f. "Mixed Development" shall mean a development that includes more than one of the types of development defined in this Section 1 . Mixed developments may combine residential types of development (Single Family and Multifamily), non-residential types of development (Commercial, )ndustrial, and Office), or a combination of residential and non-residential types of development. g. "Multifamily Residential" shall mean any residential Development that does not.qualify as detached single family dwelling unit Development as defined in the Report, as adopted by the City. h. "Office" shall mean any developfent constructed or to be constructed.on land having a General Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, ,Ordinance No: 2300 N.C.S,, or any successor ordinance, for general business offices, medical and professional offices, administrative or headquarters offices for large wholesaling or manufacturing operations, and other uses incidental to these activities. Office land uses include but are not limited to: administrative headquarters; business parks; finance offices; insurance offices; legal offices; medical and health services'offices; office buildings; professional ,and administrative offices; professional associations; real estate offices; and travel agencies. i. "Single Family Residential" shall mean detached, single-family dwelling unit development as defined in the Report, as adopted by theCity. Y8 2. Park Land Acquisition Fee (Non-Quimby Act Development.Projects) Imposed. Pursuant to the Mitigation Fee Act and Chapter 19.12 of the City of Petaluma Municipal Code, a Park Land Acquisition Fee (Non-Quimby Act Development. Projects) shall be imposed and paid at the times and in the amounts and otherwise apply and -be administered as prescribed in this Resolution on each type of development set forth in Exhibit A, which is attached to and made ,a part of this Resolution, including each portion of such Development within Mixed Development. 3. Time for Imposing Fee. In accordance with Government Code Section 65961, the Fee for residential subdivision development for which tentativeor parcel maps are required pursuant to the Subdivision Map Act (Government Code Section 66410 et seq.) shall be imposed at the time of approval of 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 Residential and Multiple Family Residential subdivisions, shall be as specified in Section 4, below. 4. Time for Fee.Payment. a. In accordance with Government Code Section 66007, the Fee shall be charged and paid for each residential development upon the date of final inspection or issuance of the certificate of occupancy for such residential development; whichever is earlier; however, if the Fee is to reimburse the City, for expenditures previously made, of if the City determines that the Fee will be collected for Facilities for which an account has been established and funds appropriated and for whichtheCity has adopted a proposed construction schedule prior to issuance of the building permit for such residential development, then the Fee shall be charged and paid upon issuance of the building permit for such residential development. However, with respect to a residential development proposed by a nonprofithousing developer in which at least forty-nine percent (49%) of the total units are reserved for occupancy by lower income households, as defined in Health and Safety Code Section 50079.5, at an affordable rent, as defined in Healthand Safety Code Section 50053, the payment procedures described in Government Code Section 66007(b)(2)(A)-(6) shall apply. b. The Fee shall be charged and paid for each non-residential Development upon issuance of the building permit for such non-residential Development. c. The Fee shall be charged and paid for each Mixed Development upon the times specified in'this Section 4 that apply to such Mixed Development. For example, if a Mixed Development includes residential Development and non-residential Development, and the Fee is to reimburse the City for expenditures previously made, or the City has made the required determinationto permit requiring payment of the Fee upon issuance of the 79 building permit, and the procedures in Government Code section 66007(b)(2)(A)-(E3) do not apply, the Fee as applicable to the entire mixed development shall be paid upon' issuance of the building permit for the Mixed Development. If a Mixed Development includes residential and non-residential development, and the Fee is not to reimburse the City for expenditures previously made or the City has not made the required determination to permit requiring:payment of the Fee uponissuance of the building permit, the Fee as to the residential portion of the mixed development shall be paid upon the earlier of the date of final inspection or issuance of the certificate of occupancy for such residential portion, and the Fee as to the. non-residential portionof the Mixed Development shall be paid upon issuance of the building permit for such non-residential portion. 5. Amount of Fee. a. The amount of-the -Fee for residential and non-residential development shall be as set forth in Exhibit A. b. The amount of the Fee for Mixed Development shall be the sum of the following, as applicable: 1. The applicable amount per unit pursuant to Section 5(a), above, for each.residential development within a Mixed Development. 2. The applicable amount per 1,000 square feet of Development pursuant to Section 5(a), above, for each nonresidential Development or portion of such Development within a Mixed Development. c. Any non-residential development on property on which a building or structure was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution that is applicable to the new development or use, less the fee applicable to the prior development or use, so long as such prior use was in existence at-the time of adoption of General Plan 2025. d. Any development on any parcel any portion of which is located within one half-mile of any portion of a parcel identified as a possible future location for SMART Rail Station on which parcel proposed for development a building or structure was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the-'fee-calculated pursuant to this resolution that is applicable to the new development or use, less the fee- applicable to the prior development or use, so long as such prior use was in existence at the time of adoption of General Plan 2025. 6. Designation of Developments. Nonresidentialdevelopments, other than Mixed Developments (but including non-residential developments within Mixed Developments) that are not within the definition of a use defined in this resolution shall be assigned to one of the 50 defined use categories by the City Manager for purposes of imposition and charging of the.Fee. The City Managershall assign such categories as consistently as possible within the detinifions of such categories established' pursuant to this resolution or as later amended by the City Council. The City Manager may also designate Development as Multifamily or Single-Fatiily based on the actual number of dwelling units per structure withiirthe'development. 7. Inapplicability of Fee. The Fee shall not apply to: a. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a single family residential unit or another unit is added to an existing multi-family residential unit. b. Any replacement or reconstruction of an existing residential structure that has been destroyed or demolished, if the building permit for reconstruction is obtained within one year alter the building was destroyed or demolished. This subsection shall not apply if the replacement or reconstruction increases the square'fobtage of the structure by 50 percent (50%) or more. c. Any replacement or reconstruction of an existing non-residential structure that has been destroyed or demolished, if the building permitfor reconstruction is obtained within one year after the building was destroyed or demolished, there is no change in the land use designation of the property, and the square footage of the replacement building does not exceed the square footage of the building that was destroyed or demolished. d. Any addition to an existing non-residential structure of 500 square feet or less. e. Any public or quasi-public development on lands designated Public/Semi- Public or Education on the General Plan Land Use Map, as of the effective date of the Fee, so long as such development is intended to serve development in the City and does not itself generate a need for additional public infrastructure needed to serve new development, as in the way new residential development generates new residents requiring City services, and new non-residential development generates new employees in the City using City services. f. Low and/or moderate income senior citizens housing projects owned and developed by a charitable, nonprofit organization recognized as such by the United States Internal Revenue Service and the State of California Franchise Tax Board. g. The City Council, in its discretion, may determine that the Fee is inapplicable to certain development constructed or to be constructed by a public entity on land having an appropriate General Plan land use designation provide that the City Council finds that such inapplicability is in the interest of the public health, safety and/or welfare, for reasons 7� specified in the findings. Such reasons may include, but are not limited to, that the Fee as itwould apply to suchdevelopmentby a public entity will be sufficiently recovered in whole Or in part from residential development, the residents of which may constitute the primary users of the public entity development. 8. Use of Fee Revenue. 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 that 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 design, engineering, right-of-way or land acquisition and construction and/or acquisition of the Facilities and reasonable costs of outside consultant studies related thereto; b. To reimburse theCity for the Facilities constructed by the City with funds from other sources including funds from other public entities, unless the City funds were obtained from grants or gifts intended by the grantor to be used for the Facilities; c. To reimburse developers who have designed and constructed any of the Facilities with prior City approval and have entered into an agreement, as provided in Section 9, below; and d. To pay for and/or reimburse costs of program development and ongoing administration and maintenance of the Fee program, including, but not limited to, the cost of studies, legal costs, and other costs of updating the Fee. 9. Credits and Reimbursement for Developer Constructed or Acquired 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 in 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 City Engineer. 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 the particular facility, as subsequently adjusted pursuant to Sections 13 'and 14 of 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. /a • b. Application of Credit. Developers may, apply-credit given pursuant to this section 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 or square footage of building space(orcombination thereof for a Mixed Use Development) to determine the amount of credit which can be applied against the Fee for each unit of measurement and, if the credit per unit of measure is less than the Fee per unit of measurement, the developer shall pay the difference for each residential unit or square footage of building space. 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 §hall be entitled to reimbursement, subject to,such developers certifying in writing to the City that the cost of constructing the facility that resulted in an excess credit was not passed on to homeowners, and indemnifying the City from land-owner claims for reimbursement under the Mitigation Fee Act, and Section 66001 in particular. If remaining Fee revenues afier 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. 10. Standards. • The standards upon which the need forthe Facilities is based are the standards of the City, including. the standards contained in the General Plan and its E1R and those City standards reflected in the Report. 11. Periodic Review. a. During each Iiscal year, the.City Manager shall prepare a report for the City Council, pursuant to Government Code Section 66006; identifying the balance of Fee revenues in the Fee account. b. Pursuant to Government Code Section 66002, ;the City-Council shall also review, as part of any adopted City Capital Improvement Plan each year, the approximate location, size, time of availability and estimates of' cost for all Facilities to be financed with the Fee. The estimated costs shall be adjusted in accordance with appropriate indices of inflation. The City Council shall make findings identifying the purpose to which the existing Fee revenue balances are to be put and demonstrating a reasonable relationship between the Fee and the purpose for'which it is charged. ,c3 12: Subsequent Analysisand Revision of the Fee. The Fee ,set. forth herein is, adopted •and implemented by the City Council in reliance on the Record identified above. The City will 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 remain reasonably related to the impacts of development within the City of Petaluma and areas included in the City's General Plan. The City Council may revise the Fee to incorporate findings and conclusions of further studies and any standards, in General Plan and/or the General Plan FIR, as well as increases due to inflation and increased construction costs. 13. Fee Adjustments. a. Annual Cr! Adjustments. The Fee established, will escalate or decrease annually by the same percentage the latest "Engineering News Record Construction Cost Index-20 City Average" ("Index") annually escalates or decreases. The adjustment shall be based on a comparison of the most recent'Index to the Index in the month-of adoption of the Fee, or the Index used for the prior adjustment of the Fee. The Finance Director shall compute the increase or decrease in such Fee. Such Fee adjustments will take effect each July 1St. b. Refund Applications Based on 2008 Development Fees Paid. Current owners of development that paid development fees pursuant to Resolution No. 2008-092 N.C.S. may apply for a refund of the difference, if any, between the total development fees that owner paid pursuant to said resolution ("prior fee"), and the resolution(s) that superseded the. resolution listed in this provision ("current fee"), if the total amount of prior fees paid exceeds the total amount oEcurrent fees applicable to that development,subject to the following: 1. To be eligible for a refund, current development owners must certifying in writing to the City.that the owner has not recovered or is notrecovering from third parties such as tenants-or others the amount of the prior lees paid or the amount by which the prior fees exceed the current fees. Any refunds pursuant to this provision shall only be paid from existing, un-obligated, unspent Feerevenue balances. The City will have no obligation to pay refunds to any owner absent sufficient existing, un-obligated, unspent Fee revenue balance available for that purpose. 3. If existing; un-obligated, unspent Fee revenue balances are insufficient to cover eligible applications for refund, such eligible applications shall be paid refunds a pro rata basis in accordance with applicable law. • 14. Administrative Guidelines. The Council may, by resolution, cadopt administrative -guidelines to provide procedures for calculation, credit, reimbursement, or deferred payment and other administrative aspects of the; Fee. Such guidelines may include procedures for construction of designated Facilities by developers. 15. Effective Date. This resolution shall become effective 60 days following its adoption in accordance with California Government Code section 66017, subdivision (a). 16. Severability. Each component of the Fee and all portions of this Resolution are severable. Should any individual component of the Fee orother provision of this Resolution be adjudged: to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective, and the Fee shall be fully effective except as to that component that has been judged to be invalid. 17. Supersession/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 this resolution. 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, shalt 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. EXHIBIT A PARK LAND ACQUISITION FEE (NON-QUIMBY ACT DEVELOPMENT PROJECTS) Land'Use Type iEee,Anfount Unit oFMeasuuement Single Family Residential $1,616 Unit Multi-Family Residential $1,093 Unit Accessory Dwelling $554 Unit Commercial $306 1,000 square feet of building space Office $293 1,000 square feet of building space Industrial $186 1,000 square feet of building space S4 ATTACHMENT 4 RESOLUTION REPLACING THECURRENT OPENSPACE LAND ACQUISITION FEE RESOLUTION FOR NEW DEVELOPMENT PROJECTS PROVIDING FOR OPEN SPACE LAND ACQUISITION NECESSARY TO SERVE FUTURE.DEVELOPMENT WITHIN THE CITY OF PETALUMA, RESOLUTION NO, 2012-123 N.C.S.,.ADOPTED AUGUST 27, 2012, TO AMEND PROVISIONS GOVERNING HOUSING DEFINITIONS AND CREDIT FOR PRIOR USES RECITALS 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 ("EIR",) was prepared for the General Plan (State Clearinghouse Number 2004082065) pursuant to the California Environmental Quality Act ("CEQA") and certilied by the City Council on April 7, 2008 by Resolution No. 2008-058 N.C.S.; and, WHEREAS, the General Plan area is shown on the land use maps contained in the General Plan; and, WHEREAS, the City Council last updated the City's Open Space Acquisition Fee for New Development by Resolution No. 2012-123 N.C.S., adopted Atigust.27, 2012; 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 costs of acquiring and imp'oJing public facilities, including community and .neighborhood park improvements, necessary to meet the demands of residents,employees, customers, and businesses; and, WHEREAS, the General Plan and its E1R analyze the impacts ofdevelopment-under the General Plan and proposed mitigation measures, including the creation of fee programs to require new development to pay for its proportional fair share of the cost of acquiring and improving public :facilities "necessary to meet the demands of new residents, employees, customers, and businesses for such facilities; and, WHEREAS, Goal I-G-6 of Chapter I 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 l-P-48 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 fair share of long-term infrastructure improvement• costs as entitlements are ;granted"'and program 13 "Initiate design of long term infrastructure improvements in a timely manner to ensure their completeness to coincide with demand"; and, WHEREAS,,Goal 1-G-1 of Chapter I of the,General Plan;provides that the City should "Maintain a balanced land use program that meets the long-term residential, employment, retail, institutional, education, recreation, and open space needs of the community", and, WHEREAS, Policy i-P-18 of Goal 1-0-3 of Chapter 1 of the General Plan provides that the City should "Maintain a permanent open space around the city through the continued use of the Urban Separator and the use of an Urban Separator Pathway, as designated"; and, WHEREAS, Goal 2-G-1 ofChapter 2 of the General Plan provides that the City should "Preserve P.etaluma's setting as an urban place surrounded largely by rural land uses and densities, agriculture and open'space"; and, WHEREAS, Program (E) of Policy 6-P-I of Goal 6-G-I of Chapter 6 of the General Plan provides that the City ;should "As part of the City's Development regulations establish common open space requirements for multi-family development.:Such open space shall NOT be counted toward public park dedication/in lieu fee requirements for meeting neighborhood and/or community park needs'"; and, WHEREAS; Policy 6-P-6 of Goal 6-G-I of Chapter 6 of the General Plan provides that the City should "Achieve and maintain a park standard of 5 acres per 1,000 residents (community park land at 3 acres per 1,000 population and neighborhood park land at 2 acres per 1,000 population) and an open space/urban separator standard of 10 acres per 1,000 population, in order to enhance the physical environment of the City and AO meet.the,recreation needs of the community"; and, WHEREAS, chapter 20.34 of the Petaluma Municipal Code, adopted pursuant to California Government Code section 66477 (the "Quimby Act"), requires the dedication of park land as a part of residential development subject to the Quimby Act, or the payment of a fee in lieu of dedicating property. The Quimby Act applies only to fees and/or dedications imposed On certain subdivisions subject to.the Subdivision Map Act (Government Code Section 64410 el sect) tofund' land acquisition costs.for park or recreational purposes, and the Quimby Act does • not apply to ihiposition of fees for open space land acquisitions; and, WHEREAS, the City retained Municipal Resource Group, LLC to,determine, based in part on the land use designations provided by the General Plan, the acquisition of open space land thatwould be necessary to•maintain the.level of those services provided to the community and to fund new development's share of the costs of Maintaining the developed park acreage and improvements available to Petaluma; and, WHEREAS, Municipal Resource Group, LLC prepared the "City of Petaluma Mitigation Fee Act Nexus Report & Quimby Act In-Lieu Fee Report" ("Report"), dated August 14, 2012 ('Report"), a copy of which is on file in the Office;of the City Clerk and hereby made a part of this Resolution by reference. The Report, in Chapter VII and Appendix T, outlines the cost of open space lands necessary to, maintain the current levels of open space provided to the community and thereby meet the•demands of new residents for such open space through build c?' out under the General Plan..The Report estimates the cost in current dollars of acquiring the amount of suitable open space land to meet the General Plan standard, and calculates the fees necessary to raise the reyenue necessary to pay for that cost attributable to new development; and, WHEREAS, the Report, the General Plan and;the General Plan FIR describe the impacts of contemplated future development.pn existing public facilities in the City of Petaluma related to maintaining.the General Plan open space standard and analyze the need for new open space land acquisition required by future development within the City of Petaluma, described above and in Chapter VII and Appeitdix'T of the Report; and, WHEREAS, the Report estimates the cost in current dollars of the required additional open space land, assigns hose costs attributable to new development, and calculates the fees necessary to raise the revenue necessary to pay for the open space land acquisition costs attributable to new development; and, WHEREAS, the Report demonstrates the appropriateness of adopting a fee based on current estimates of the need for and cost of open space land acquisition needed to accommodate new development including (1') an evaluation of the open space 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 openspace 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, the,Open Space Land Acquisition Fee is not a "tax" as defined in Section 1, paragraph (e) of Article.XIIIC of the California Constitution ("Proposition 26") because such fee is imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the City of providing the service or product;and/or the fee is imposed for a specific government service or product provided directly to the payor that is not provided to those notcharged, and which does not exceed the reasonable cost to the City of providing the service or product; and/or the fee is imposed for the reasonable regulatory costs to the City Of issuing licenses and permits, performing investigations, .inspections and audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof; and/or the feeis imposed as a condition of property development; and,. WHEREAS, the Open;Space Land Acquisition Fee,is not subject to the requirements of Article XIIID. of the California Constitution ("Proposition 218") concerning property related assessments and fees pursuant to Apartment Association of Los Angeles County v. City of Los Angeles (2001) 24• Ca1.42 830, in that such fee is not applicable to incidents of property ownership, but rather to actual use of and need for City services and/or facilities; and, WHEREAS, in.accordance with Government Code Section 50076, fees and charges that do not exceed the reasonable cost of providing the service or regulatory activity for which the fees are charged and which are not levied for general revenue purposes are not special taxes as defined in Article 3.5 of the Government Code; and, WHEREAS, in accordance with Government Code Section 66016, at least fourteen (14) days prior to the public meeting at which this Resolution was adopted, notice of the time and • place of the meeting was mailed to eligible interested parties who Filedwritten requests with the City for nailed 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 tileeting,atwhich the CityCouncil considered the adoptioriof this resolution; and, WHEREAS, ten (10) days advance notice of the public: meeting at which the City Council considered adoption of this resolution was given by publication in accordance with Government Code Section 6062a;-and. WHEREAS, on September 10, 2012, the City Council adopted Ordinance No. 2444 N.C.S., which adds new Title 19,entitled "Development Fees,"'to the Petaluma Municipal Code ("Code") and amends, repeals and/or recodifies various provisionsauthorizing the City's development-related fees, including the City Facilities Development Impact Fee, Park Land Development Impact Fee, Open Space Land Acquisition Fee, Park Land Acquisition Fee (Non- Quimby Act), Park Land Acquisition Fee (Quimby Act), Traffic Development Impact Fee, Water and Wastewater Capacity Fees and the Commercial Development Housing Linkage Fee. • FINDINGS WHEREAS, the City Council finds as follows: A. After considering Chapter VII and Appendix T of 'the Report, the testimony received at the noticed public meeting at which this Resolution was adopted, the accompanying staff report, the General Plan, the General Plan EIR, and all correspondence received at or prior to the public meeting (the "Record"), the Council approved and adopted the Report by Resolution No. 2012-123 adopted August 27, 2012; and the City Council further found that the futuredevelopment in the City of Petaluma will generate the need for the Facilities, and the Facilities are consistent.with the City's General Plan. B. The City currently provides open space amenities to Petaluma residents and employees at the ratio of 10 acres of open space per 1,000 population, and the fee set forth in this Resolution will be used to' maintain current service levels. As such, the Open Space Land Acquisition Fee as it relates to development within the City is not a "project" within the meaning of CEQA (Pub. Res. Code §21080(b)(8)(D)). • C. In adopting this resolution, the Council is exercising its powers under Article XI, §§'5 and 7 of the California Constitution, Chapter 5 of Division 1 of the Government Code ("Mitigation fee Act"), commencing with Section 66000, Section 54 of the City of Petaluma Charter, and Chapter 19.08 of the Petaluma Municipal Code, collectively and separately. D. The Record establishes: 1. In accordance with Section 66000, subdivision a, paragraph I of the Mitigation Fee Act, the purpose of the Open Space Land Acquisition Fee ("Fee"), set forth in this Resolution, as specified in Chapter VII of the Report, is to provide funding to achieve the City's goal of maintaining existing service levels and to provide adequate open space amenities for Petaluma residents and employees as established in the General Plan. Existing standards for community and neighborhood parks have been 6'0 identified which have been used as the basis to maintain these standards for future development, and to mitigate the impacts caused by future development in the City. 2. In accordance with Section. 66000, subdivision a, paragraph 2 of the Mitigation Fee Act, the Fee collected pursuant to this Resolution shall be used to purchase open space land as described in the Report and the General Plan_ ("the Facilities"). The Facilities, which are specifically described in Chapter VII and Appendix T of the Report, include the following: • Acquisition of 14.07 acres of open space land 3. In accordance with section 66000, subdivision a, paragraph 3 of the MitigationFee Act, there is a reasonable relationship between the Fee's use (topay for the construction of the. Facilities) and the type of development for which the Fee is charged in that the fee will be applied all development In the City — including_residential, commercial, office, and industrial development projects, which Will generate new demands for open space amenities. The open space acquired with the proceeds of the Fee will address and mitigate the additional impacts and demands created by residential and non-residential development projects. 4. In accordance with Section 66000, subdivision a, paragraph 4, there, is a reasonable relationship between the need for the Facilities and the types of development projects on which the Fee is imposed in that the Fee will be applied to new development in the City of Petaluma— both residential and non-residential. These development projects will generate new residents and employees who live, work, and/or shop in Petaluma and who generate or contribute to the demand for open space, because the new residents and employees.will benefit from open space acquired and the same standard of opemspace will be:provided to new residents and employees as to existing residents and employees. 5. In accordance. with Section 66000, subdivision b of the Mitigation Fee Act, there is a reasonable relationship between the amount of the Fee and the cost of the Facilities, or the portion thereof attributable to, the development in the City on which the Fee is imposed in that the Fee has been calculated by apportioning the.cost'of acquiring new open space land to each type of new residential unit, and to the "resident equivalent" of each employee generated by commercial, office and industrial development projects. The full cost of the Facilities has been allocated to the Fee because the entire cost will be incurred to provide the same standard of open space amenities to future residents and employees as is provided to existing residentsand employees. 6. The cost estimates set forth in the Report are reasonable estimates for acquiring the Facilities, and the Fees expected to be generated by future development will not exceed the projected cost of acquiring the Facilities. 7. The method of allocation of the Fee to a particular development bears a fair relationship"and is roughly proportional toeach development's burden 677 on and.benefits from the Facilities to be funded by the Fee, in that-the Fee is calculated based on the number of residents or employees each particulardevelopment will generate. 8. The Report is a.detailed analysis of how public services will be affected by development in the City and the public facilities required to accommodate that development. 9. The Fee is consistent with the General.Plan and, pursuant to Government Code Section 65913.2; the City Council has considered the effects of the Fee with respect to the City's housing needs aS established in the housing element of the General Plan. 10. The Feeamounts set forth in Exhibit A include the reasonable costs of administration and compliance of the Fee. program with the requirements of the Mitigation Fee Act and other applicable-law. The Fee program and administration cost is calculated to be approximately 2% of the total Fee as indicated in Chapter VII ol'the Report. ADOPTION OF FEE NOW, THEREFORE, HE IT RESOLVED, 1. Definitions. a. "Accessory Dwelling" shall mean a second unit which meets the standards set forth in. Section 7.030 of Chapter 7, "Standards for Specific Land Uses" of the City of Petaluma Implementing Zoning Ordinance ("IZO"), as modified by any subsequent amendment or successor zoning ordinance and/or development code provision adopted by the City which defines * - Accessory Dwelling, second unit or second dwelling unit." b. "Commercial" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, No. 2300,N.C.S., or any successor ordinance, for lacilitiesfor thepurchase'and sale.of-commodities and services and the sales, servicing, installation, and repair of such commodities and services and other 'isesincidental to.these activities. Commercial land uses include but are not limited to: apparel and clothing stores; auto dealers and malls; auto accessories stores; banks and savingsand.loans;beauty salons; book stores; discount stores and centers; dry cleaners; drug stores; eating and drinking establishinents; furniture stores and outlets; general merchandise stores; hardware stores; home furnishings and improvement centers; laundromats; liquor stores; service stations; shopping centers; supermarkets; bicycle shops; cameras and photographic supply stores; convenience stores; department stores; drug stores and pharmacies; jewelry stores; luggage and leather goods stores; sporting -goods'and equipment stores; stationery stores; collectible stores; second hand goods stores; religious goods stores; hobby materials stores; small wares stores; plant sales; bowling alleys; coin-operated amusement arcades; dance halls, clubs and ballrooms; electronic game arcades; ice 6.2 skating and roller skating establishments; pool and billiard rooms; amusement-and theme parks; go-cart tracks; golf driving ranges; miniature golf courses water slides; banks and ltrust companies; credit agencies; holding .companies fending and thrift institutions; securities/commodity contract brokers and dealers; fueling stations and gas stations; security and commodity exchanges; vehicle finance leasing agencies; restaurants, cafés and coffee.shops; and movie theatres and civic theatres. c. "Developed" and "Development" shall mean the construction or alteration of or addition to, other than by the City, of any building or structure within the City of Petaluma. d. "Facilities" shall include those municipal public.facilities as are described in the Report related to providing general improvements to community and -neighborhood park lands. "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 (1) that there is a reasonable relationship between development within the City of Petaluma and the need for the alternative facilities; '(2) that the alternative facilities are comparable Ito the facilities in the Report; and (3) that the revenue from the Fee will be used only to pay new development's fair and proportionate share of the alternative facilities. e. "Industrial" shall mean any development constructed or to be.constructed on land having a General Plan 2025 land use or zoning designation as established in the Implementing Zoning Code, Ordinance No. 2300 N.C.S., or any successor ordinance, for the manufacture; production, assembly, and processing of consumer ,goods, uses incidental to those activities, and research, development and •warehousing. Industrial land uses includes but are'not limited-to: assembly; contractor's storage yards; fabrication; lumber yards; manufacturing; outdoor stockyards and service yards; printing; processing; warehouses and distribution centers; wholesale and heavy commercial enterprises; clothing, fabric and other product manufacturing; electronics, equipment, -and appliance manufacturing;- metal products fabrication, machine and welding shops; paper product manufacturing; food and beverage product manufacturing; small-scale manufacturing; lumber and wood product manufacturing; machinery manufacturing; motor vehicle and transportation equipment manufacturing; stone and cut,stone product manufacturing; structured clay and pottery product manufacturing; processing of building materials, chemicals, fabricated metals, paper products, machinery, textiles, and/or equipment; and collection; sorting and processing enterprises. "Mixed Development" shall mean a development that includes more than one of the types of development defined. in this Section 1. Mixed developments may combine residential types of development (Single Family and Multifamily), non-residential types of development (Commercial, Industrial, and Office), or a combination of residential and non-residential types of development. '3 g. "Multifamily Residential" shall mean-any residential Development that does not qualify as detached single family dwelling unit Development as defined in.the Report, as adopted.by the,City. h. "Office" shall mean any development constructed or to be constructed on. land having a General Plan 2025 land use or zoning designation, as • established in the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., or any successor ordinance, for general business offices, medical and professional offices, administrative or• headquarters offices for large wholesaling or inanufhcturing operations, and other uses incidental to these activities. Office land uses include but are not limited to: administrative headquarters; .business parks; finance offices; insurance offices; legal offices; medical and health services offices; office buildings; professional and .administrative offices; professional associations; real estate offices; and travel agencies. "Single Family Residential" shall mean detached, single-family dwelling unitdevelopment as defined in the Report, as adopted by the City. 2. Open Space Land Acquisition Fee Imposed. Pursuant to the. Mitigation Fee Act and .Chapter 19.08 of the City of Petaluma Municipal Code, an Open Space Land Acquisition 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 each type of development set forth in Exhibit A, which is attached to and made a part of this Resolution, including each portion of such Development within Mized Development. 3. Time for Imposing Fee. In accordance with Government Code Section 65961, the Fee for residential subdivision development for which tentative or parcel maps are required pursuant to the Subdivision 'Map Act (Government Code Section 66410 el seq.) shall be imposed at the time of approval of 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 tithe for payment of the Fee for all development, including Single Family Residential and Multiple Faniily Residential!subdivisions, shall be as specified in Sectiom4, below: 4. Timcfor Fee Payment. a. In accordance with Government Code Section 66007, the Fee shall be charged and paid for each residential development upon the date of final inspection or issuance of the certificate Of occupancy for such residential development, whichever is earlier; however, if the Fee is to reimburse the City for'expenditures previously made, or if-the City determines that the Fee: will be collected for Facilities for which an account has been established and funds appropriated and for which the City has adopted a proposed construction schedule prior to:issuanceofthe building permit for such residential development, then the Fee shall be charged and paid upon issuance Of the building permit for such residen(ial development. �l However; with respect to a residential development proposed by a nonprofit housing developer in which at least forty-nine percent (49%) of the total units are reserved for occupancy by lower income households, as defined In Health and Safety Code.Section 50079.5, at an affordable rent, as defined in Health and Safety Code Section 50053, the payment procedures described in Government Code Section 66007(b)(2)(A)-(B) shall apply. b. The Fee shall be charged and paid for each non-residential. Development upon issuance of the building permit for such non-residential Development. c. The Fee shall be charged and paid for each Mixed Development upon the times specified in this Section 4 that apply to such Mixed Development. For example, if a Mixed Development includes residential Development and non-residential Development, and the Fee,is to reimburse the City for expenditures previously made, or the City has made the required determination to permit requiring payment of the Fee upon issuance of the building permit, and the procedures in Government Code section 66007(b)(2)(A)-(B) do not apply, the Fee as applicable to the entire mixed development shall be paid upon issuance of the building permit for the Mixed Development. If a Mixed Developnient includes residential and non-residential development, and the Fee is,notto reimburse the City for expenditures previously made or the City has not made the required determination to permit requiring payment of the Fee upon issuance of the building permit, the Fee as to the residential portion of the mixed development shall be paid upon the earlier of the date of final inspection or issuance of the certificate of occupancy for such residential portion, and the Fee as to the non-residential portion of the Mixed Development shall be paid upon issuance of the building permit for such non=residential portion. 5. Amount of Fee. a. The amount of the Fee for residential and non-residential development shall be as set forth in Exhibit A. b. The amount of the Fee for Mixed Development shall be the sum of the following, as'applicable: I. The applicable amount per unit pursuant to Section 5(a), above, for each:residential development within a Mixed Development. 2. The applicable amount per 1,000 square feet of Development pursuant to Section 5(a), above, for each nonresidential Development or portion of such Development within a Mixed Development. c. Any non-residential development on property on which a building or structure was demolished or on which the use of an existing structure changes to .a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this Resolution that is applicable to the new development or use, less the fee applicable to the prior development or • use; so long,as such prior use was;in 'existenee at.the time of adoption of General Plan 2025. d. Any development on any parcel any portion.of which is located, within one half:mile of'any portion of a'parcel identified as a possible future location for a SMART Rail Station on which parcel proposed for development a building or structure was demolished or on which the use: of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution'that is applicable to the new development or use, less the fee applicable to the prior development or use, so long as such prior use was in existence at the time of adoption of General Plan 2025. 6. Designation of Developments. Nonresidential developments, other than Mixed Developments (but including non-residential within Mixed Developments) that are not within the definition of a use defined in' this Resolution shall be assigned to one of the, defined use categories by the city Manager for purposes of imposition and charging of the Fee. The City Manager shall assign such categories, as consistently as .possible within the definitions of such categories established pursuant to this Resolution or as later amended by the City Council. The City Manager may also designate Development as Multifamily or Single-Family based on the actual number of dwelling units per structure'within.the development. 7. Inapplicability of Fee. The Fee shall not apply to: a. Any alteration or addition to a residential •structure, except to the extent that a residential unit is added to a singletfamilyresidential unit or another unit is added to an existing multi-family residential unit; b. Any replacement or reconstruction of an existing residential structure that has been destroyed or demolished, if the building-permit for reconstruction is obtained within. one year after the building was destroyed or demolished. This subsection shall not apply if the replacement or reconstruction increase's the square footage of the structure by 50 percent (50%) or more. c. Any replacement or reconstruction of an existing non-residential structure that has been destroyed or demolished, if the building permit for reconstruction is obtained within one year after the building was destroyed or demolished, there is no change in the. land use .designation of the property, and the square footage of the replacement building does not exceed the square footage of the building that was destroyed or demolished. d. Any addition to an existing non-residential structure of 500 square feet or less. (P� • e. Any public orquasi-public development on lands.designated Public/Semi- PublicorEducation on the General PIan.Land Use.Map, as of the effective date of the :Fee, so long as such development is intended to serve development in the City and does not itself generate a.need for additional public infrastructure needed to serve new development, as in the way new residential development generates new residents requiring City services, and new non-residential development generates new employees in the City using City services. I'. The City Council, in its discretion, may determine that the Fee is inapplicable to certain development constructed or to be constructed by a public entity on land having an appropriate General Plan land use designation provide that the City Council finds that such inapplicability is in the interest of the public health, safety and/or welfare, for reasons specified in the findings. Such reasons may include, but are riot limited to, that the Fee as it-would apply to such development by a public entity will be sufficiently recovered in whole,or in part from residential development, the residents of which may constitute the primary users of the public entity development. 8. Use of Fee Revenue. 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 that 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 design, engineering, right-of-way or land acquisition and construction and/or acquisition of the Facilities and reasonable costs of outside consultant studies related thereto; b. To reimburse the City for the Facilities constructed by the City with funds from other sources including funds from other public entities, unless the City funds were obtained from grants or gifts intended by the grantor to be used for the Facilities. c. To reimburse developers who have designed and constructed any of the Facilities with prior City approval and have entered into an agreement, as provided in Section 9, below; and d. To pay for and/or reimburse costs of program development and ongoing administration and maintenance of the Fee program, ineluding, but not limited to; the cost of studies, legal costs, and other costs`of updating the Fee. 9. 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 in 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 6? with a developer prior to construction of one or more of the Facilities, the City shall providethe developer a credit in accordancewith 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 City Engineer. However, in no event shall a credit pursuant to.thisprovision exceed the current facility cost. For the purposes of this section, such current facility cost shall be the amount listed in the Report for the particular facility, as subsequently adjusted pursuant .to Sections 13 and 14 of 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. Developers may apply credit given pursuant to this section 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 or square.footage'of building space (or combination thereof for a Mixed Use Development) to"determine the amount of credit which can be. applied against the Fee for each unit of measurement and,,if the credit per unit of measure is less than the Fee per unit of measurement, the developer shall pay the difference for each residential unit or square footage of building space. 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 Suclr.developers certifying in writing to the City that the cost of constructing the facility that resulted in an excess credit was not passed on to homeowners, and indemnifying the City from land-owner 'claims 'for reimbursement under the Mitigation Fee Act, 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. 10. Standards. The standards upon which the need for the Facilities is based are the standards of the City, including the standards contained in the General Plan and its FIR and those City standards reflected in the Report. I I. Periodic Review. 6g a. During each fiscal year, the.City.Manager shall prepare a report for the City Council, pursuant to Government Code Section 66006, identifying the balance of Fee revenues in the Fee.account.-. b. Pursuant.-to Government Code Section 66002; the City Council shall also review, as part of any adopted City Capital Improvement Plan each year, the approximate location, size, time of availability and estimates of cost for-all Facilities-to be financed with the Fee. The estimated costs shall be adjusted in accordance with appropriate indices of inflation. The City Council shall make findings identifying the purpose to which the existing Fee •revenue balances are to be put and demonstrating a reasonable relationship between the Fee and the purpose for which it is charged. 12. Subsequent Analysts and Revision of the Fee. The Fee set forth herein is adopted and implemented by the City Council in reliance on the Record identified above. The City will 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 remain reasonably related to the impacts of development within the City of Petaluma and areas included in the City's General Plan. The City Council may revise the Fee to incorporate findings and conclusions of further studies and any standards in General Plan and/or the General Plan FIR, as well as increases due to inflation and increased construction costs. 13. Fee Adjustments. a. Annual CPI Adjustments. The Fee established will escalate or decrease annually by the same percentage the latest "Engineering News Record Construction Cost Index-20 City Average" ("Index") annually escalates or decreases. The adjustment shall be based on a comparison of the most recent Index to the Index in the month of adoption of the Fee, or the Index used for the prior adjustment of the Fee, The Finance Diteetor shall compute the increase or decrease in such Fee. Such Fee adjustments will take effect each July 1st. b. Refund Applications Based on 2008 Development Fees Paid. Current owners of development that paid development fees pursuant to Resolution No. 2008-091 N.C.S. may apply for a refund of the difference, if any, between the total development fees that owner paid pursuant to said Resolution ("prior fee"), and the Resolution(s) that superseded the Resolution listed in this provision ("current fee"), if the total amount of prior fees paid exceeds the total amount of current fees applicable to that development;subject-to the following: 1. To be eligible for a refund, current development owners must certifying in writing to the City that the Owner has not recovered or is not recovering from third parties such as tenants or others the amount of the prior fee paid or the amount by which the prior fee exceeds the current fee. 2. Any refunds pursuant to this provision shall only be paid from existing; un-obligated, unspent Fee revenue balances. The City will have no obligation to pay refunds to any owner absent sufficient existing un-obligated, unspent.Fee revenue balance available for that purpose: 3. Ifexisting, un-obligated, unspent Fee revenue balances are insufficient to cover eligible applications for refund, such eligible applications shall be paid refunds on a pro rata basis in accordance with applicable law. 14. Administrative Guidelines. The Council may, by resolution, adopt administrative guidelines to provide procedures for calculation, credit, reimbursement, or deferred payment and other administrative aspects of the Fee. Such guidelines may include procedures for construction of designated Facilities by developers. 15. Effective Date: This Resolution shall become effective 60 days following its adoption in accordance with California Government Code"section 66017, subdivision (a). 16. Severability. Each component of the. Fee and all portions of this Resolution are severable. Should any individual component of the Fee or other-provision of this Resolution be adjudged to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective, and the Fee shall be fully effective except as to that component that has been judged to be invalid. 17. Supersession/Repeal/Savings Clause. All Resolutions and parts thereof in conflict with the provisions-of this resolution are superseded and repealed, effective on the effective date of this resolution. 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•ofsustaining any proper suit; action, -or other proceedings, with respect to any such violation, right,liability'or.appeal. EXHIBIT A OPEN SPACE ACQUISITION FEE LaniLUse Type Fee,Amount Unit of`Measurement Single Family Residential $379 Unit Multi-Family Residential $255 Unit Accessory Dwelling $130 Unit Commercial $72 1,000 square feet of building space Office $69 1,000 square feet of building space Industrial $44 1,000 square feet of building space ATTACHMENT 5 RESOLUTION REPLACING THE CURRENT TRAFFIC DEVELOPMENT IMPACT FEE RESOLUTION FOR4FUTURE'DEVELOPMENT WITHIN THE CITY OF PETALUMA; RESOLUTION NO.2012-125 N.C.S:, ADOPTED AUGUST 27, 2012, TO AMEND PRI VISIONS GOVERNING HOUSING DEFINITIONS, CREDIT FOR PRIOR USES AND REFUND OF FEES ALREADY PAID RECITALS WHEREAS, the City of Petaluma General Plan 2025 ("General Plan") outlines future land uses within the City of Petaluma ("City") and applies to a planningarea 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 ("EIR") was prepared for the General Plan (State Clearinghouse#2004082065) pursuant to the California Environmental Quality Act ("CEQA") and certified by the City Council on April 7, 2008 by Resolution No. 2008-058 N.C.S.; and, WHEREAS, the General Plan area is shown on the land use maps contained in the General Plan; and, WHEREAS, the City Council last updated the Traffic Development Impact Fee by Resolution No. 2012-125 N.C.S., adopted August 27, 2012; 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 when all property in the Cityis developed as anticipated in the General Plan 2025; and, WHEREAS, the General Plan incorporates policies and programs tomitigate the impacts of such anticipated new development, including policies that require new development to pay for its proportional fair share of'the costs of acquiring and improving public facilities necessary to meet the demands of residents, employees, customers, and businesses; and, WHEREAS, the General Plan and its EIR analyze the impacts of development under the General Plan and proposed mitigation measures; including the creation of fee programs to require new development to pay for its proportionalfair share of the cost of acquiring and improving public facilities necessary to meet the demands of new residents, employees, customers, and businesses for such facilities; 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, 7a WHEREAS, Policy i-P-48 of Goal 1-G-6 of Chapter I 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 fair share of long-term, infrastructure improvement costs as entitlements are granted" and program Bi "Initiate design of long term infrastructure improvements in a timely manner to ensure their coinpleteness to coincide with demand"; and, WHEREAS, the General Plan includes, among others, the-following principles, goals, policies and/or implementation programs regarding, providing and financing the cost of traffic improvements required to accommodate new development in the City: "ensure infrastructure is strengthened and maintained" (Guiding Principle No. 12, p. i-8); "ensure the identified mobility system is provided in a timely manner to meet the needs,of the community by updating the City's transportation impact fee program to insure that necessary citywide improvements are funded" (Policy 5-P-2, Goal 5-G-f: Mobility Framework, p. 5-9 ); "ensure public improvements are constructed and maintained in a manner that is economically feasible to the budgetary constraints of the.City" (Policy 5-P-3, Goal 5-6,1: Mobility Framework, p. 5-9); and, WHEREAS; the City retained Fehr & Peers Transportation Consultants (hereafter "Fehr & Peers") to determine, based in part on the land use designations provided by the General Plan, what roadway improvements would be necessary to maintain the community's level of service, as set forth in the General Plan and also discussed in the EIR, and to prepare proposed updates to the Fee to fund new development's share of those improvements; and, WHEREAS, a study of the iinpacts.of anticipated future development on existing traffic facilities in the City, and an analysis of the need for such new facilities required by future development was prepared by Fehr & Peers, dated August 15, 2012, entitled "Traffic Mitigation Fee Program Update" (`'Report"), a copy of which is on file in the Office of the City Clerk, and is hereby incorporated by reference; and, WHEREAS, the Report, the General Plan and the General Plan EIR list the street extensions, interchange and intersection improvements, traffic signal upgrades, and improvements to bicycle, pedestrian and transit facilities necessary to maintain the community's level of service and thereby meet the transportation demands of new residents, businesses, employees, customers, and othenusers of local streets and transportation facilities through build out under the General Plan; and, WHEREAS, the Report, the°General Plan and the:General Plan EIR describe>the impacts of contemplated future development on existing transportation facilities:in the.City of Petaluma and analyze the need for the new transportation facilities required by future development within the City of Petaluma, as described herein and in the Report; and, WHEREAS, the Report sets forth the relationship between contemplated future development, the Facilities, and the estimated cost of the Facilities; and, WHEREAS, the Report estimates, the cost in current dollars of those improvements, assigns the portion of those costs attributable to new development, and calculates the fees necessary to raise the revenue necessary to pay for the portion of the improvement costs attributable to new development; and, WHEREAS, the Report identifies a component of the cost of the Old Redwood Highway/U.S. 101 Interchange Project and the Rainier Avenue/U.S. 101 Interchange Project to which funds of the former Petaluma Community Development Commission ("PCDC") have 73 been committed in accordance with the Community Redevelopment Law and through cooperative agreements with the Sonoma County 'Transportation Authority and CalTrans, the binding nature:of Which commitments, has been disputed by the' State Department of Finance pursuant to ABx 1 26 as of the time of adoption of thisResolution;and, WHEREAS; the'Report identifies the disputed•fundsas^a''"Redevelopment Supplement" of$18.8 million dollars that the Report includes in the cost of the Traffic Impact Fee program so that Traffic Fee proceeds are sufficient to fund the Old Redwood Highway and Rainier Avenue interchange improvements in case the City is ultimately unsuccessful in obtaining confirmation from the State Department of Finance or the courts that the disputed funds are in fact legally bindingobligations of the City as successor agency to the former PCDC; and, WHEREAS, the Report demonstrates the appropriateness of updating the Fee based on current estimates of the need for and cost of transportation improvements needed to accommodate new development, including (1) an analysis of existing roadways, transportation facilities and land available for such facilities; (2) an estimate of the increase in the City's service population at build out; and (3) the cost of providing the transportation improvements identified as necessary to meet the demands of the estimated increase in the City's service population at build out; and, WHEREAS, The Traffic Development Impact Fee is not a "tax" as defined in Section 1, paragraph (e) of Article XIIIC ofthe'California Constitution ("Proposition 26") because such fee is imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the, reasonable cost to the City of providing thc'service or product; and/or the fee is imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the City of providing the service or product; and/or the fee is imposed for the reasonable regulatory' costs to the City of issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof and/or the fee is imposed as a condition of property development;and, WHEREAS, the Traffic Development Impact Fee is not subject to the requirements of Article XIIID of the California Constitution ("Proposition 218") concerning property related assessments and fees pursuant to Apartment Association of Los Angeles County v. City of Los Angeles (2001) 24 Cal.4°i 830, in that such fee is not applicable to incidents of property ownership; buttrather to actual'use of and need for City services and/or facilities; and, WHEREAS; in accordance with Government Code Section 50076, fees and charges that do not exceed the reasonable cost of providing the service or regulatory activity for which the fees are charged and which are'not levied for general revenue purposes are not special taxes as defined in Article 3.5 of the Government Code; and, WHEREAS, in accordance Government Code section 66016, at least 14 days prior to the public meeting at which the'City Council considered the adoption of this resolution, notice of the time and place of the meeting was mailed to eligible interested parties who filed timely 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 meeting at which the City Council considered the adoption of this resolution; and, �� WHEREAS, ten (10) :days advance notice of the public meeting at which the City Council considered adoption of the this resolution was given bypublication in accordance with Government Code Section 6062a;and, WHEREAS, on September 10, 2012, the City Council adopted Ordinance No. 2444 N.C.S, which adds a new Title 19, entitled "Development Fees," to the Petaluma Municipal Code and amends, repeals and/or recodifies various provisions authorizing the City's development-related fees, including the City Facilities Development Impact Fee, Open Space Land Acquisition Fee, Park Land Acquisition Fee.(Non-Quimby Act), Park Land Acquisition Fee (Quimby Act), Traffic Development Impact Fee, Water and Wastewater Capacity Fees and the Commercial Development Housing Linkage Fee. FINDINGS WHEREAS, the City Council.finds as follows: A. After considering the Report, the testimony received at the noticed public meeting at which this resolution was adopted, the accompanying staff report, the General Plan, the General Plan EIR, and all correspondence received at or prior to the public meeting (the "Record"), the Council approved and adopted the Report by Resolution No. 2012-125 N.C.S, adopted August 27, 2012; and the City Council further found that thefuture development in the City of Petaluma will generate the need for the Facilities, as defined below, and that the Facilities are consistent with the City's General Plan. B. The City currently provides facilities to the community and the fee set forth in this resolution will be used to maintain current service levels. As such, the Traffic Development Impact Fee as it relates to development within the City is not a "project" within the meaning of CEQA (Pub. Res. Code §21080(b)(8)(D)). C. In adopting this resolution, the City Council is exercising its powers under Article XI, §§5 and 7 of the California Constitution, Chapter 5 of Division 1 of the Government Code ('`Mitigation Fee Act"), commencing with Section 66000, Section 54 of the City of Petaluma Charter, and Chapter 19.24 of the Petaluma Municipal Code, collectively and separately. D. The Record establishes: 1. In accordance with Section 66000, subdivision a; paragraph I of the Mitigation Fee Act, the purpose of the City Traffic Impact Fee ("Fee"), set forth in this resolution, as specified in the Report, is to provide funding to achieve the City's goal of maintaining existing traffic service levels and provide traffic facilities to mitigate the traffic impacts of new development within the City, consistent with the land use and transportation polices of the General Plan by developing an overall transportation system that will accommodate the City's expected future traffic demand. 2. In accordance with Section 66000, subdivision a, paragraph 2 of the Mitigation Fee Act, the Fee collected pursuant to this resolution shall be used to help fund circulation improvement projects necessary to accommodate future traffic demand in Petaluma as described in the Report, the General Plan and the City's budget for capital improvements. Such traffic Facilities, which are specifically described in the Report and listed in Table 3-3 of the Reports include the following: • Rainier Avenue Extension and interchange (locally preferred alternative) • Caulfield Lane Extension • OId.Redwood Highway Interchange Improvements • Caulfield Lane/Payran Street Intersection Improvements • Petaluma Boulevard/Magnolia Avenue/Payran Street Intersection • Construction of New Intersections throughout the City • Traffic,Signal Upgrades throughout the City • Pedestrian/Bicycle Improvements throughout the City • Transit Improvements throughout the City • Redevelopment Supplement 3. In accordance with section 66000, subdivision a, paragraph 3 of the Mitigation Fee Act, there is a reasonable relationship between the Fee's use (to pay for the construction of the Facilities) and the type of development for which the Fee is charged in that the fee will be applied all development in the City — including residential, commercial, office, and industrial development projects, which will generate new demands for traffic facilities. As described in the Report, different types of developnient generate traffic with different characteristics. The calculations presented in tables 3-7 and 3-8 of the Report account for these different:characteristics by applying different per-unit fee factors to each type of development. These considerations account for the differential impacts on the local transportation system generated by different development types. 4.. In accordance with Section 66000, subdivision a, paragraph 4, of the Mitigation Fee Act, there is a reasonable relationship between the need for the Facilities and the types of development projects on which the Fee is imposed in that the Fee will be applied.to new development in the City of Petaluma — both residential and non-residential. These development projects Will generatenew residents and•employees.who;live, work, and/or shop in Petaluma and who generate or contribute to the need for traffic facilities as follows: • New residents and employees will add vehicle trips to transportation infrastructure, including roadways, intersections, interchanges and trafficaignals. • New residents and employees will add pedestrian and bicycle trips to pedestrian and bicycle facilities. • New residents and employees will use City transit facilities and services. The need for the traffic facilities listed in Table 3-3 of the Report has been established through the development of the EIR,.as described in Chapter 3 of the Report. The Report indicates thatthere are no existing deficiencies in any of the facilities to be included in the City's Traffic Development v Y� Impact Fee program, and that as a result, the program will not result in imposition of the cost of addressing currently deficient traffic facilities on new development. All of the traffic facilities costs allocated to new development under the Traffic Development Impact fee program are allocable to new development in accordance with the analysis in the report, either in_their entirety, onaccording to the fair percentage allocable to new'development as indicated in the Report. 5. In accordance with Section 66000, subdivision b of the Mitigation Fee Act, there is a reasonable relationship between the amount of the Fee and the cost of the Facilities, or the portion thereof attributable to the development in the City on which the Fee is imposed in that the Fee has been calculated by apportioning the cost of the -Facilities to each type of new residential dwelling unit, and to the "dwelling unit equivalent" or DUE of each non-residential (commercial, office and industrial) use. For Facilities that ate-necessary solely because of future development, the full cost of the.Facilities has been allocated to the Fee. For Facilities that will serve existing and future residents and employees, the costs have been allocated proportionally. The analysis presented in the Report accounts for existing deficiencies in the local transportation system and does not include,the cost of rectifying deficiencies in the fee program. The costs attributable to traffic demand generated outside the City of Petaluma are similarly excluded from the program. Thus, the City's Traffic Development Impact Fee program allocates to new development only the cost of public improvements attributable to new development within Petaluma. Tables 3-9, 3-10 and 3-11 in the Report provide detailed information on these calculations 6. The cost estimates set forth in the Report are reasonable estimates for constructing or acquiring the Facilities, and the Fees expected to be generated by future development will not exceed the projected cost of constructing and/or acquiring the Facilities. 7. The method of allocation of the Fee to a particular development bears a fair relationship and is roughly proportional to each development's burden on and benefits from'the Facilities to be funded by the Fee, in that the Fee. is calculated based traffic impacts each particular developmentwill generate. 8. The Report is a detailed analysis of how traffic.services willbeaffected by development in the City and the public facilities requiredto;accommodate that development. 9. The Fee is consistent with the General Plan and, pursuant to Government Code Section 65913.2; the City Council has considered the effects of the Fee with respect-to the City's housing needs asestablished in the housing element of the General Plan. 10. The .Fee amounts set forth in Exhibit A include the reasonable costs of administration and compliance of the Fee program with the requirements of the Mitigation Fee Act and other applicable law. The Fee program and 7? administration cost is calculated to be approximately .074%.of the total Fee as shown in Table 3-11 and Appendix C of the Report. • ADOPTION OF FEE NQW, THEREFORE, BE IT RESOLVED, Definitions. a. "Accessory Dwelling" shall mean a second unit which meets the standards set forth in Section 7.030 of Chapter 7, "Standards for Specific Land Uses" of the City of Petaluma Implementing Zoning Ordinance (`IZO"), as modified by any subsequent amendment or successor zoning ordinance and/or development code provision adopted by the City which defines Accessory Dwelling, second unit or second dwelling unit." b. "Commercial/Shopping" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, No. 2300 N:C.S., or any successor ordinance, for facilities for the purchase and sale of commodities and services and the sales, servicing, installation, and repair of such commodities and services and other uses incidental to these activities. Commercial land uses include but are not limited to: apparel and clothing stores; auto dealers and malls; auto accessories stores; banks and savings and loans; beauty salons; book stores; discount stores and centers; dry cleaners; drug stores; eating and drinking establishments; furniture stores and outlets; general merchandise stores; hardware stores; home furnishings and improvement centers; laundromats; liquor stores; service stations; shopping centers; supermarkets; bicycle shops; cameras and photographic supply stores; convenience stores; department .stores; drug stores and pharmacies; jewelry stores; luggage and leather goods stores; sporting goods and equipment stores; stationery stores; collectible stores; secondhand goods stores; religious goods stores; hobby materials stores; small wares stores; plant sales; bowling alleys; coin-operated amusement arcades; dance halls, clubs and ballrooms; electronic game arcades; ice skating and roller skating establishments; pool and billiard rooms; amusement and theme parks; go-cart tracks; golf driving ranges; miniature- golf courses; water slides; banks and trust companies; credit agencies; holding companies; lending and thrill institutions; securities/commodity contract brokers and dealers; fueling stations and gas stations;security and commodity exchanges; vehicle finance leasing agencies; restaurants, cafés and coffee shops; and movie theatres and civic theatres. c. "Developed"and "Development" shall mean the,construction or alteration of or addition to, other than by the City, of any building or structure within the City of Petaluma. d. "Education" shall mean educational Development as defined in the Report, that may lawfully be made subject to payment of the Fee. 70 e. "Facilities" shall include those municipal,public facilities as are described in the Report related to providing general improvements to community and neighborhood park lands. "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 (1) that there is a reasonable relationship between development within the City of Petaluma and the need for the alternative facilities; (2). that the alternative facilities are comparable to the facilities in the Report; and (3) that the revenue from the Fee will be used only to pay new development's fair and proportionate share of the alternative facilities. f. "Hotel/Motel" shall mean transient occupancy Development as defined in the Report. g. "Industrial/Warehouse" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation as established in the Iinplcmenting Zoning Code, Ordinance No. 2300 N.C.S., or any successor ordinance, for the manufacture, production,assembly, and processing of consumer goods, uses incidental to those activities, and research, development and warehousing. Industrial land uses include, but are not limited to: assembly; contractor's storage yards; fabrication; lumber yards; manufacturing; outdoor stockyards and service. yards; printing; processing; warehouses and distribution centers; wholesale and heavy commercial enterprises; clothing, fabric and other product manufacturing; electronics, equipment, and appliance manufacturing; metal products fabrication, machine and welding shops; paper product manufacturing; food and beverage product manufacturing; small-scale manufacturing; lumber and wood product manufacturing; machinery manufacturing; motor vehicle and transportation equipment manufacturing; stone and cut stone product manufacturing; structured clay and pottery product manufacturing; processing of building materials, chemicals, fabricated metals, paper products; machinery, textiles, and/or equipment;'and collection, sorting and processing enterprises. h. "Institution" shall mean institutional Development *as defined in the Report. "Mixed Development" shall mean a development that includes more than one of the types of development defined in this Section 1. Mixed developments may combine residential types of development (Single Family and Multifamily), non-residential types of development (Commercial, Industrial, and Office), or a combination of residential and non-residential types of development. J. "Multifamily Residential" shall mean any residential Development that does not qualify as detached single family dwelling unit Development as defined in the Report, as adopted by the City. k. "Office"' shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation, as established in the Implementing Zoning. Ordinance, Ordinance No. 2300 N.C.S., or any successor ordinance, for general business offices, medical and professional offices, administrative or headquarters offices for large wholesaling or manufacturing `operations, and other uses incidental to these activities. Office land uses include but are not limited to: administrative headquarters; business parks; finance offices; insurance offices; legal offices; medical and health services offices; office buildings; professional and administrative offices; professional associations; real estate offices;,and travel agencies. "Redevelopment Supplement" shall mean $18.8 of the cost of the Old Redwood Highway/U.S. 101 Interchange and the Rainier Avenue/U.S. 101 hrterchange Projects to which funds of the former PCDC have been committed in accordance with the Community Redevelopment Law and through cooperative agreements between the City and the Sonoma County Transportation Agency and CalTrans, the binding nature of which commitments has been disputed by the State Department of Finance pursuant to ABx1-26 as of the time of adoption of this Resolution. Such disputed former PCDC funds are referred to _in this Resolution and the Report(see, e.g., Tables 3-3 and 3-11 of the Report) as the Redevelopment • Supplement, and have been included in the costs of the Traffic Development Impact Fee program to ensure that Fee proceeds are sufficient to fund the Old Redwood Highway and Rainier Avenue interchange improvements in case the City is ultimately unsuccessful in obtaining confirmation from the State Department of Finance or the courts that the disputed funds are in fact a legally binding obligation of the City as successor agency to the former PCDC. m. "Senior Housing" shall mean senior housing Development as defined in the Report. n. "Single Family Residential" shall mean detached, single-family dwelling unit development as defined in the Report,as adopted by the City. 2. Traffic Development Impact Fee Imposed. Pursuant to the Mitigation Fee Act and Chapter 19.24 of the City of Petaluma Municipal Code, a Traffic Development Impact 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 each type of development set forth in Exhibit A, which is attached to and made a part.of this Resolution, including each portion of such Development within Mixed Development. 3. Tillie for Imposing Fee. In accordance with Government Code Section 65961, the Fee for residential 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 approval of 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 Fec for all 8° development, :including Single Family Residential and Multiple Family Residential Subdivisions, shall be as specified in Section.4, below. 4. Time for Fee Payment. a. In accordance with Government, Code Section .66007, the Fee shall be charged and paid for each residential development upon the date of final inspection or issuance of the certificate of occupancy for such residential development, whichever is earlier; however, if the Fee is to reimburse the City for expenditures previously made, or if the City determines that the Fee will be collected for Facilities for which an account has been established and funds appropriated and for which the City has adopted a proposed construction schedule prior to issuance of the building permit for such residential development, then the Fee shall be charged and paid upon issuance of the building permit for such residential development. However, with respect to a residential development proposed by a nonprofit housing developer in which at least forty-nine percent (49%) of the total units are reserved for occupancy by lower income households, as defined in Health and Safety Code Section,50079.5, at an affordable rent, as defined in Health and Safety Code Section 50053, the payment procedures described in Government Code Section 66007(b)(2)(A)-(B) shall apply. b. The Fee shall be charged and paid for each non-residential Development upon issuance of the building permit for such non-residential Development. e. The Fee shall be charged and paid for each Mixed Development upon the times specified in this Section 4 that apply to such Mixed Development. For example, if a Mixed Developmentincludes residential Development and non-residential Development, and the Fee,is to reimburse the City for expenditures previously made, or the City has made the required determination to permit requiring payment of the Fee upon issuance of the building permit, and the procedures in Government Code section 66007(b)(2)(A)-(B) do not apply, the Fee as applicable to the entire nixed development shall be paid upon issuance of the building permit for the. Mixed Development. If a Mixed Development includes residential and non-residential development, and the Fee is not to reimburse the City for expenditures previously made or the City has not made the required determination to permit requiring payment,of the Fee•upon issuance of the building permit, the Fee as to the residential portionof the mixed development shall be paid upon the earlier of:the date of final inspection or issuance of the certificate of occupancy for such residential portion, and the Fee as to the non-residential portion of the Mixed Development shall be paid upon issuance of the building permit for such non-residential portion. 5. Amount of Fee. a. The amount of the Fee for residential and non-residential development shall be as set forth in Exhibit A. 8�. b. The amount of the Fee for Mixed Development shall be the sum of the following, as applicable: 1. The applicable amount per unit pursuant to Section 5(a), above, for each residential development within a Mixed Development. 2. The applicable amount per 1,000 square feet of Development pursuant to Section 5(a), above, for each nonresidential Development or portion of such Development within a Mixed Development. c. Any non-residential development on property on which a building or structure was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution that is applicable to the new development or use, less the fee applicable to the prior development or use, so long,as.such prior use was in existence at the time of adoption of General Plan.2025. d. Any development on any parcel any portion of which is located within one half-mile of any portion of a parcel identified;as a_ possible future location for a SMART Rail Station on which parcel proposed for development a building Or structure was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution that is applicable to the new development or use, less the fee applicable to the prior development or use, so long as such prior use was in existence at the time of adoption of General Plan 2025. 6. Designation of Developments. Nonresidential developments, other than Mixed Developments (but including non-residential developments within Mixed Developments)'that are not within the definition of a use defined in this resolution shall be assigned to one of the defined use categories by the City Manager for purposes of imposition and charging.of the Fee: The City Manager shall assign such categories as consistently as possible within the definitions of such categories established pursuant to this resolution or as later amended by the City Council. The City Manager may also designate Development as Multifamily or Single-Family based on the actual number of dwelling units per structure within the development. 7. Inapplicability of Fee. The Fee shall not apply to: a. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a single family residential unit or another unit is added to an existing multi-family residential unit. b. Any replacement or reconstruction of an existing residential structure that has been destroyed or demolished, if the building permit for reconstruction is obtained within one year after the building was destroyed or demolished. This subsection shall not apply if the replacement or reconstruction increases the square footage of the structure by 50 percent (50%)or-more. c. Any replacement or reconstruction of an existing non-residential structure that has been destroyed or demolished; if the building permit for reconstruction is obtained within one yearafter the building was destroyed or demolished, there is no change in the land use designation of the property, and the square footage of the replacement building does not exceed the square footage of the building that was destroyed or demolished. d. Any addition to an existing non-residential structure of 500 square feet or less. e. Any public or quasi-public development on lands designated Public/Semi- Public or Education on the General'Plan Land Use Map, as of the effective date of the Fee, so long as such development is intended to serve development in the City and does not itself generate.a need for additional public infrastructure needed to serve new development, as in the way new residential development generates new residents requiring City services, and new non-residential development gencrates.new employees in the City using City services. f. The City Council, in its discretion, may determine that the Fee is inapplicable to certain development constructed or to be constructed by a public entity on, land having an appropriate General Plan land use designation provide that the City Council finds that such inapplicability is in the interest of the public health, safety and/or welfare, for reasons specified in the findings. Such reasons-niay include, but are not limited to, that the Fee as it would apply to such development by a public entity will be sufficiently recovered in whole or in part from residential development, the residents of which may constitute the primary users of the public entity development. 8. Use of Fee Revenue. 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 that,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 design, engineering, right-of-way or land acquisition and construction and/or acquisition of the Facilities and reasonable costs of outside:consultant studies related thereto; b. To reimburse the City for the,Facilities constructed by the City with funds from other sources including funds from other public entities, unless the City funds were obtained from grants or gifts intended by the grantor to be used for the Facilities; c. To reimburse developers who have designed and constructed any of the Facilities with prior City approval and have entered into an agreement, as provided in Section 9, below; and d. To pay for and/or reimburse costs•oi program development and ongoing administration and maintenance of the Fee program, including, butnot lifnited to, the cost of studies, legal costs, and other costs of updating the Fee. 9. Credits and Reimbursement for Developer Constructed Facilities. The City and a developer may enter into animprovement agreement to allow the developer to'construct certain of the Facilities. Entering such an agreement is in 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 creditand 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 City Engineer. However, in no event shall a credit pursuant to this provision exceed the current facility cost. Forthe purposes of this section, such current facility cost shall be the amount listed in the Report for the particular facility, as subsequently adjusted pursuant to Sections 13 and 14 of 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. Developers may apply credit given pursuant to this section against the Fee applicable to a particular project until the creditis exhausted or an excess credit results. The total credit shall be divided by the number of units or square'footage of building space (or combination thereof for a Mixed Use Developnient) to determine the amount of credit which can be applied. against the Fee for each unit of measurement and, if the credit per unit of measure is less than the Fee per unit of measurement, the developer shall pay the difference for each residential unit or square footage of building space. 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 tosuch developers certifying in writing to the City that the cost of constructing the facility that resulted in an'excess credit was not passed on gr. to homeowners, and indemnifying the City from land-owner claims for reimbursement under the Mitigation Fee Act, 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 rafa basis in accordance with applicable law. 10. Standards. The standards upon:which the need for the Facilities is based are the standards of the City, including the standards contained in the General Plan and its DR and those City standards reflected in the Report. 11. Periodic Review. a. During each Fiscal year, the City Manager shall prepare a report for the City Council, pursuant to Government Code Section 66006, identifying the balance of Fee revenues in the Fee.account. b. Pursuant to Government Code Section 66002, the City Council shall also review, as part of any adopted City Capital. Improvement Plan each year, the approximate location, size, time of availability and estimates of cost for all Facilitiesto be financed with the Fee. The estimated costs shall be adjusted in accordance with appropriate indices of inflation. The City Council shall make findings identifying the purpose to which the existing Fee revenue balances are to be put and demonstrating a reasonable relationship between the Fee and the purpose for which it is charged. 12. Subsequent Analysis and Revision of the Fee. The Fee set forth 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 remain reasonably related to the impacts of development within the City of Petaluma and areas included in the City's General Plan. The City Council may revise the Fee to incorporate findings and conclusions of further studies and any standards in General Plan and/or the General Plan EIR, as well as increases dueto inflation and'increased construction costs. 13. Fee Adjustments. a. Annual CPI Adjustment. The Fee established will escalate or decrease annually by the same percentage the latest "Engineering News Record Construction Cost Index-20 City Average" ("Index") annually escalates or decreases. The adjustment shall be based on:a comparison of the most recent Index to the Index in the month of adoption of the Fee, or the Index used for the prior adjustment of the Fee. The Finance Director shall compute the increase or decrease in such Fee. Such adjustments will take effect each July 1st. b. Refund Applications Based on RedevelopmentSupplement. In the case of any development which has incurred and paid a Fee which includes the Redevelopment Supplement, should the State Department of Finance or the couits-finally recognize the obligations of the City as successor to the former PCDC pursuant to the 'above=described cooperativeagreements such that. the $18.8 million dollars comprising the Redevelopment Supplement is retained by the City as successor to the former PCDC, current owners of development that paid development fees that included the Redevelopment Supplement may apply for a refund of the portion of the Fee that owner paid which is attributable to the Redevelopment Supplement, subject to the following: I. To be eligible for a refund, current development owners must certify in writing to the City that the owner has not recovered or is not recovering from third parties such as tenants or others the amount of the fees paidattributable to the Redevelopment Supplement. 2. Any refunds pursuant to this provision shall only be paid from existing, un-obligated, unspent Fee revenue balances. The City will have no obligation to pay refunds to any owner absent sufficient existing, un- obligated, unspent Fee revenue balance available for that purpose. 3. If existing, un-obligated, unspent Fee revenue balances are insufficient to cover eligible applications for refund, such eligible applications shall be paid refunds a pro rata basis in accordance with applicable law. c. Refund applications based on 2008 Development Fees Paid. Current owners of development that paid development fees pursuant to Resolution No. 2008-095 N.C.S. may apply for a refund of the difference, if any, between the total development fees that owner paid pursuant to Resolution No. 2008-095 N.C.S. ("prior fee"), and the total development fees applicable to that development under this resolution ("current fee"), if the total amount of prior fees paid exceed the total amount of current fees applicableto that development, subject to the following: 1. To be eligible for a refund, the project must be,a public or quasi-public development as defined in Section 7 e. of this resolution. 2. To be eligible for a refund, current development owners must certify in writing to the City that the owner has not recovered or is not recovering from third parties such as tenants or others the amount of the prior fees paid or the amount by which the prior fees exceeds the current=fees. 3. Any refunds pursuant to this provision shall only be paid from existing, un-obligated, unspent Fee revenue balances. The City will have no obligation to pay refunds to any owner absent sufficient existing, un-obligated, unspent Fee.reyenue balance available for that purpose. 4.. If-existing un-obligated, unspent Fee revenue balances are insufficient to cover eligible applications for refund, such eligible applications shall be paid refunds on a pro rata basis in accordance with applicable law. 14. Administrative Guidelines. The Council may, by resolution, adopt administrative guidelines to provide procedures for calculation, credit, reimbursement; or deferred payment and other administrative aspects of the Fee. Such guidelines may include procedures for construction of designated Facilities by developers. 15. Effective Date. This resolution shall become effective 60 days from its adoption in accordance with California Government Code section 66017, subdivision (a). 16. Severability. Each component of the Fee and all portions of this Resolution are severable. Should any individual component of the Fee or other provision of this Resolution be adjudged to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective, and the Fee shall be fully effective except as to that component that has been judged to be invalid. 17. Supersession/Repeal/Savings Clause. All resolutions and parts thereof in conflict withthe provisions of this resolution are superseded and repealed, effective on the effective date of this resolution. 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. 137 EXHIBIT A TRAFFIC DEVELOPMENT IMPACT FEE lanai U§eType. Fee Amount .Unit:of;Nleasurement • Single Family Residential $18,978 Unit Multiple Family Residential $11,650 Unit Accessory Dwelling $5,261 Unit Senior Housing $5,073 Unit Office $18,199 1,000 square feet of building space Hotel/Motel $11,086 Room Commercial/Shopping $17,522 1,000;squarc feet of building space Industrial/Warehouse $12,928 1,000 square feet of building space Education $2,894 Student Institution $6,718 1,000 square feet of building space ATTACHMENT 6 RESOLUTION REPLACING THE CURRENT WASTE WATER'CAPACITY FEE RESOLUTION FOR NEW DEVELOPMENT IN THE++CITY OF PETALUMA, RESOLUTION NO. 2012-127 N.C.S., ADOPTED AUGUST 27, 2012 TO AMEND PROVISIONS GOVERNING THE TIME FOR FEE PAYMENT RECITALS 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 ("FIR") was prepared for the General Plan (State Clearinghouse #2004082065) pursuant to the California Environmental Quality Act ("CEQA") and certified by the City Council on April 7, 2008 by Resolution No. 2008-058 N.C.S.; and, WHEREAS, the General Plan area is shown on the land use maps contained in the General Plan; and, WHEREAS, the City Council last updated the City's Wastewater Capacity Fee for New Development by Resolution No. 2012-127 N.C.S., adopted August 27, 2012; and, WHEREAS, the General Plan incorporates policies and programs to mitigate the impacts of such anticipated new development, including policies that require new development to pay for its proportional fair share of the cost ofacquiring and improving public facilities necessary to meet the demands of residents, employees, customers, and businesses; and, WHEREAS, the General Plan and its FIR analyze the impacts of development under the General Plan and proposed mitigation measures, including the creation of fee programs to require new development to pay for its proportional fair share of the cost of acquiring .and improving public facilities necessary to meet the demands of new residents, employees, customers, and businesses for such-facilities; and, WHEREAS, Goal 1-G-6 of Chapter I 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-48 of Goal 1-G-6 of Chapter 1 of the-General Plan provides that the City should "Ensure that new development provides necessary public facilities to support the development," and includes program A which provides that the City should: "Collect proportionate fair 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 to coincide with demand"; and, St • WHEREAS, Goal ;8-G 4,of Chapter 8 of the General Plan provides that the City should "Manage the wastewater collection and treatment system to address 100 ,percent capture and treatment of the City's wastewater in an economically and ecologically Sound manner"; and, WHEREAS, Policy 8-P-15 of Goal 8-G-4 of Chapter 8 ofthe General Plan,provides that "Capacity of the water recycling facility shall be/maintained, and expanded as necessary, to keep pace with the City's growth"; and, WHEREAS, wastewater services provided by the City include, but are not limited to, wastewater collection, treatment, disposaland reuse; 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 financialstudiesto determine the necessary infrastructure to provide sufficient wastewater facilities and services to serve existing and anticipated development under General Plan 2025; and, WHEREAS, the City retained Bartle Wells Associates to determine, based in part on the land use designations provided,by the General Plan, the water and wastewater capacity necessary to maintain the level of such services provided to the community and to fund new development's share of the costs of maintaining adequate capacity for water and wastewater amenities to Petaluma; and, WHEREAS, an analysis of the capacity charges necessary to recover the cost of wastewater facilities needed to serve future costumers was prepared by Bartle Wells Associates dated August 15, 2012, entitled "Water & Wastewater Capacity Charges" ("Report"), a copy of which is on file in the Office of the City Clerk, and is herebyincorporated by reference; and, WHEREAS, the Report, the General Plan and the General Plan FIR describe the facilities necessary to provide adequate wastewater capacity in the City; and, WHEREAS, the Report, the General Plan and the General Plan FIR describe the impacts of contemplated future development on existing public facilities in the City of Petaluma and analyze the need for the new facilities required by future development within the City of Petaluma, described above and in the;Report; and, WHEREAS, the Report describes new development's share of the cost 'of existing facilities (buy-in), and the costs needed to finance construction of necessary capital improvements to serve new development as described in the Report, the Genefal Plan and the • City's budget for capital improvements (collectively, the "Facilities");.and, WHEREAS, the Report sets forth the relationship between contemplated future development, the Facilities, and the estimated cost ofthe Facilities; and, WHEREAS, the Report estimates the cost in current dollars of the Facilities, assigns the portion of the cost attributable to new development, and calculates the fees necessary to raise the revenue necessary to pay for the portion of the cost of the Facilities attributable to new development; and, WHEREAS, The Wastewater Capacity Fee is not a "tax" as defined in Section I, paragraph (e) of Article XIIIC of the California Constitution ("Proposition 26") because such fee is imposed for a specific benefit conferred or privilege.granted directly to the payor that is not q0 provided to those not charged, and which does not exceed the reasonable cost to the City of providing the service or product; and/or the fee is imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to. the City of providing the-service or product; and/or the fee is imposed for the reasonable regulatory costs to the City 'of issuing licenses and permits, performing investigations, inspectionsand audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof; and/or the fee is imposed as a condition of property development; and, WHEREAS, the Wastewater Capacity Fee is not subject to the requirements of Article XIIID of the California Constitution ("Proposition 21:8") concerning property related assessments and fees pursuant to Apartment Association of Los Angeles County v. City of Los Angeles (2001) 24 Cal.4t 830, in that such fee is not applicable to incidents of property ownership, but rather to actual use of and need for City services-and/or facilities; and, WHEREAS, in accordance with Government Code Section 50076, fees and charges that do not exceed the reasonable cost of providing the service or regulatory activity for which the fees are charged and which are not levied for general revenue purposes are not special taxes as defined in Article 3.5 of the Government Code; 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 timely 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 City Council considered the adoption of this resolution; and, WHEREAS, ten (10) days advance notice of the public hearing at which the City Council considered the adoption of this resolution was given by publication in accordance with Government Code Section 6062a;-sand, WHEREAS, on September 10, 2012, the City Council adopted Ordinance No. 2444 N.C.S., which adds a new Title 19, entitled "Development Fees," to the Petaluma Municipal Code and amends, repeals and/or recodifies various provisions authorizing the City's development-related fees, including the City Facilities Development Impact Fee, Open Space Land Acquisition Fee, Park Land Acquisition Fee (Non-Quimby Act), Park Land Acquisition Fee (Quimby Act), Traffic Development linpact Fee, Water and Wastewater Capacity- Fees and the Commercial Development Housing Linkage Fee. FINDINGS WHEREAS, the City Council finds as follows: A. After considering the Report, the testimony received at the noticed public meeting at which this resolution was adopted, the accompanying staff report, the General Plan, the General Plan EIR, and all correspondence received at or prior to the public meeting (the "Record"), the Council approved and adopted the Report by Resolution No. 2012-127 adopted August 27, 2012; and the City Council further found that the future development in the City of Petaluma Will generate the need for the Facilities; and the Facilities are consistent with the City's General Plan. 9/ B. The City currently provides wastewater facilities and supplies wastewater to the community and the fee set forth in this resolution will be used to maintain current service levels. As such, the Wastewater Capacity Fee as it relates to development within the City isnot a."project" within the,meaning.of CEQA (Pub. Res. Code §21080(b)(8)(D)). C. In-adopting this-resolution, the City Council is exercising its powers under Article XI, §§5 and 7 of the California Constitution, Chapter 5 of Division 1 of the Government Code ("Mitigation Fee Act"), commencing with Section 66000, Section 54 of the City of Petaluma Charter, and Chapter 19.28 of the Petaluma Municipal Code, collectively and separately. D. The Record establishes: 1. In accordance With section 66013, subdivision a, of the Mitigation Fee Act, the Wastewater Capacity Fee imposed by this Resolution ("Fee") does not exceed the estimated reasonable cost of providing the wastewater services for which the Wastewater Capacity Fee is imposed, in that the Fee istcalculated based on the relationship'between the value of the City's existing wastewater facilities, and the value of upgrades and additional capacity heeded to serve new users, and allocates to new wastewater system customers their fair share of the cost of existing and future wastewater improvements needed to serve the new customers. The Fee includes the buy-in component for existing facilities and projected capital expenditures that strictly benefit new customers, as described in detail in Appendix A of the Report, as well as in the City's capital improvement plan. The Report establishes that wastewater system improvements are required, and-justifies the changes in the wastewater capacity charge based on the amount required to "buy into" existing, facilities and anticipated City capital expenditures. The Report explains how the capacity charges are' calculated on the basis of capital costs related to the upgrades and expansion of the wastewater system required by the addition of future connections. The Fee is necessary to cover the City's cost of improvements required to serve anticipated future connections. 2.. The cost estimates set forth in the Report are reasonable estimates for constructing or acquiring the Facilities, and the Fees expected to be generated by future development will not exceed theprojected cost of constructing and/or acquiring the Facilities; and 3. The method of allocation of the Fee to a particular development bears a fair relationship and is roughly proportional to each development's burden on and benefits from the Facilities to be funded by the Fee, in that the Fee is calculated based on the wastewater facilities demand each particular development will generate. 4. The Report is a detailed analysis of how public services will be affected by development in the City and the public facilities required to accommodate that development. 7� 5. Pursuant to Government Code Section 66483(0, the Facilities are in addition to the existing facilities serving the sanitary sewer area covered by the Report at the time of its adoption. 6. Pursuant to Government Code Section 66483(e) the fee as set forth in this Resolution as to any property proposed for subdivision and subject to the Subdivision Map Act (Government Code Section 66410 et seq.) within the sanitary sewer area covered by the Report does not exceed the pro rata share of the amount of the total actual or estimated cost of all of the planned sanitary sewer facilities within such sanitary sewer area which would be assessable on such property proposed for subdivision if such costs were apportioned uniformly on a per acre basis. 7. The Fee is consistent with the General Plan and,;pursuant to Government Code Section 65913.2, the City Council has considered the effects of the Fee with respect to the City's housing needs as established in the housing elementof the General Plan. ADOPTION OF FEE NOW, THEREFORE, BE IT RESOLVED: Definitions. a. "Accessory Dwelling" shall mean a second unit which meets the standards set forth in Section 7.030 of Chapter 7, "Standards for Specific Land Uses' of the City of Petaluma Implementing Zoning Ordinance ("IZO"), as modified by any subsequent amendment or successor zoning ordinance and/or development code provision adopted by the City which defines Accessory Dwelling, second unit or second;dwelling unit." b. "BOD" means biochemical oxygen demand. c. "Commercial" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, No. 2300 N.C.S., or any successor ordinance, for facilities for the purchase and sale of commodities and services:and'the sales, servicing, installation, and repair ofsuch commodities and services and other uses ineidental to these activities. Commercial land uses include but are not limited to: apparel and clothing stores; auto dealers and malls; auto accessories stores; banks and savings and loans; beauty salons; book stores; discount stores and centers; dry cleaners; drug stores; eating and drinking establishments; furniture stores and outlets; general merchandise stores; hardware stores; hone furnishings and improvement centers; laundromats; liquor stores; service stations; shopping centers; supermarkets; bicycle shops; cameras and photographic supply stores; convenience stores; department stores; drug stores and pharmacies; jewelry stores; luggage and leather goods stores; sporting goods and equipment stores; stationery stores; collectible stores; second hand goods stores; religious goods stores; hobby materials stores; small wares stores; plant sales; bowling alleys; coin-operated amusement arcades; dance halls, clubs and ballrooms; electronic game arcades; ice 3 skating and roller skating establishments; pool and billiard rooms; amusement and theme parks; go-cart tracks; golf driving ranges; miniature golf courses; water slides; banks, and trust companies; credit agencies; holding companies; lending and thrift. institutions; securities/commodity contract brokers and dealer*.fuelingstations and,gas stations; security and commodity exchanges; vehicle.finance leasing agencies; restaurants, cafés and coffee shops; and movie theatres and civic theatres. d. "Developed" and "Development" shall meanthe construction or alteration of or addition to, other than by the City, of any building or structure Within the City of Petaluma and within any areas served by the City outside the jurisdictional limits of the City. e. "Director"shall mean the Director of Public Works and Utilities or his/her designee. f "Domestic Wastewater" means any wastewater•which will enter the City's sanitary sewer from the non-industrial operation„preparation, cooking and handling of food; or, containing human waste and similar matter from the sanitary conveniences of dwellings, commercial building, industrial facilities and installations. g. "Dwelling Unit — Single Family" means any single-family residential dwelling or mobile home designed for occupancy by one family, each of which shall be deemed equivalent to one dwelling unit. h. "Dwelling Unit — Multi Family" means any duplex, triplex, fourplex, townhouse or condominium, apartment house, lofts, or other multi- residential establishment, designed for occupancy for living purposes by more than one family, which is divided into separate residential units, each of which is designed for Occupancy by one family only, each resident unit shall be deemed equivalent to one dwelling unit. For example, an apartment complex with 10 apartments shall be considered to have 10 dwelling-units. "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 (I) that there is a reasonable relationship between Development and the need for alternative facilities (2) that the alternative facilities.are comparable to the facilities listed in the Report, and (3) that revenue frons fees charged pursuant to this Resolution will be used only to pay new Development's fair and proportionate share of the alternative facilities. j. "hcF' means hundred cubic feet. One her is equivalent to 748 gallons. k. "Industrial" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation as established in the Implementing Zoning Code, Ordinance No. 2300 N.C.S., or any successor ordinance, for the manufacture, production, assembly, and processing of consumer :goods, uses incidental to those activities,. and research, development, and warehousing. Industrial land uses include, but are not limited to: assembly; contractor's storage yards; fabrication; lumber yards; manufacturing; outdoor stockyards and service yards; printing; processing; warehouses and distribution centers; wholesale and heavy commercial enterprises; clothing, fabric and other 'product manufacturing; electronics, equipment, and appliance manufacturing; metal products fabrication, machine and welding shops; paper product manufacturing; food and beverage product manufacturing; small-scale manufacturing; lumber, and wood product manufacturing; machinery manufacturing; motor vehicle and transportation equipment manufacturing; stone and cut stone product manufacturing; structured clay and pottery product manufacturing; processing of building materials, Chemicals, fabricated metals, paper products, machinery, textiles, and/or equipment; and collection, sorting and processing enterprises. "Industrial Wastewater" means any non-domestic wastewater which will enter into the City's sanitary sewer by being discharged from any industrial, manufacturing, commercial or business establishment or process; or from the development, recovery, or processing of any natural resource. m. "Mixed Development shall mean a development that includes more than one of the types. of development defined in this. Section 1. Mixed developments' may combine residential types of development (Single Family and Multifamily), non-residential types of development (Commercial, Industrial, and Office), or a combination of residential and non-residential types of development. n. "Non-Residential User" includes, but is not limited to, any commercial, industrial or institutional customer. o, "Office" shall mean any development constructed or to be constructed on land having a. General Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., or any successor ordinance, for general business offices, medical and professional offices, administrative or headquarters offices .for large wholesaling or manufacturing operations, and other uses. incidental to these activities. Office land uses include but are not limited to: administrative headquarters;. business parks; .finance offices, insurance offices; legal offices; medical and health services offices; office buildings; professional and administrative offices; professional associations; real estate offices; and travel agencies. P. "Residential User" means any single-family residential dwelling or mobile home designed for occupancy by one family, and any duplex, triplex, fourplex, townhouse or condominium, apartment house, mobile home park or other multi'-residential establishment, designed-for occupancy for living purposes by more than one family, which is 'divided into separate residential units, each of which is designed for occupancy by one family only. 95c q. "TSS"means total suspended solids. 2. Wastewater Capacity Fee Imposed. a. In accordance with Petaluma Municipal Code Chapter 19.32, Government Code Section 66013 and other appliCable law, a Wastewater Capacity Fee shall be imposed and paid at the tithes, and in the amounts and otherwise apply and be administered as prescribed in this Resolution on Development as described in the Report. b. In accordance with Government Code Section 66483(a), the Fee shall apply to development projects subject to the Subdivision Map Act (Government Code Section 66410 et seq.) only where the Fee has been in effect pursuant to this Resolution for a period of at least 30 days prior to the filing of the tentative or parcel map applicable to such development project. 3. Time for Imposing Fee for Residential Subdivisions. In accordance with Government Code Section 65961, the. Fee 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 the approval of 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,Payment. A Fee shall be charged and paid for each Development upon issuance of the building permit for such Development, or upon issuance of a new or revised industrial wastewaterdischarge permit, subject to applicable law. 5. Amount of Fee. The amount of the Fee shall be as follows: a. General. Connection may be made to the City's wastewater collection system trunk lines in locations approved by and subject to the regulations of the City Council, upon payment to the City of the capacity fees specified below and other specifications hereinafter indicated. b. Capacity Fee. i. Residential Users. A. Dwelling Unit — Single Family. The capacity fee shall be $7,166 per dwelling unit. B. Dwelling Unit — Multi Family. The capacity fee shall be $4,744 per dwelling unit. 7� ii. Accessory Dwelling. The capacity fee shall be $2,636 per • dwelling unit. iii. Non-Residential Users. A. Formula. The wastewater capacity fee for Non-residential Users shall be based upon the daily flow, BOD and TSS of the wastewater being discharged, except the minimum fee shall be same for Residential Users per Section 5(b)(i)(A). These three parameters shallbe applied as outlined in Table 12 below from the page 1.1 of the Report: Table 12 City of Petaluma Wastewater Capacity Charge Non-Residential Discharge Characteristics Non-Residential Unit (9Pd) BpPa) (PPd) Charge Auto repair Per service bay 30 0.063 0.063 $ 919.44 Bakery 1;000 square foot 150 0.313 0.313 4,597.21 Barber 1,000 square foot 40 0.083 0.083 1,225.92 Bowling alley Per alley 150 0.313 0.313 4,597.21 Church 1,000 square foot 60 0.125 0.125 1,838.88 Convalescent home Per room 90 0.188 0.188 2,758.33 Grocery w/ disposal 1,000 square foot 60 0.1 25 0.125 1,838.88 Grocery w/o disposal 1,000 square foot 60 0.125 0.125 1,838.88 Halls (no food service) 1,000 square foot 90 0.188 0.188 2,758.33 Hospitals Per bed 175 0.365 0.365 5,363.41 Hotels and motels with restaurants Per room 90 0.188 0.188 2,758.33 Hotels and motels without restaurant Per room 90 0.188 0.188 2;758.33 Misc. Commercial/Industrial 1,000 square foot 60 0.125 0.125 1,838.88 Mortuary 1,000 square foot 60 0.125 0.125 1,838.88 Offices, medical and professional 1,000 square foot 60 0.125 0.125 1,838.88 Restaurants 1,000 square foot i 900 1.877 1.877 27,583.25 Restaurants, fast food 1,000 square foot 570 1.188 1.188 17,469.39 Retail 1,000 square foot 60 0.125 0.125 1,838.88 Non-Residential Unit Flow BOD TSS Charge' (gpd) (PO) (PPB) School Per 100 students 560 1.168 1.168 17,162.91 Service station Per fuel pump 30 0.063 0.063 919.44 Spas and health clubs Per shower head 90 0.188 0.188 2,758.33 Taverns/bars Per seat 20 0.042 0.042 612.96 Theater 1,000 square foot 90 0.188 0.188 2,758.33 Source: City of Petaluma Wherein, DF = Customer's Daily Flow (gallons per day) BOD = Customer's Daily Concentration of,BOD (ppd) TSS = Customer's Daily Concentration of TSS (ppd) B. Loading Parameters. Values for DF, BOD and TSS shall be estimated using Table i2. The "Type of Business/Industry" to be used as the basis for the calculation shall be as determined by the Director. or his/her designee. Loading parameters for uses not listed in Table 12 shall be as determined by the Director. C. Reconciliation. After connection, the City may, at the request of the Non-Residential User, monitor and track the customer's flow based on water use meter readings for a reconciliation period not to exceed one year. After the reconciliation period, the City may, upon request from the Non-Residential User, recalculate the capacity fee using the BOD and TSS values estimated in Table 12, which is attached to and made a part of this Resolution and the actual average flows as monitored and recorded by the City. 1. Difference Less Than or Equal to $250. If the difference between the recalculated capacity fee and the original capacity fee is less than Or equal to $250, no reconciliation shall be made. 2. Difference of$251 or More. If the recalculated capacity fee exceeds the original capacity fee paid by $251 or more, the customer shall pay the total difference between the original capacity fee paid and the recalculated capacity fee. If the • recalculated capacity fee is less than the original capacity fee paid by $251 of more, the City shall refund the total difference between the original capacity fee paid and the recalculated capacity fee. y8 D. Capacity Fee on Rebuilding, Remodeling or Expansion of Existing Non-Residential User Facilities. In the event of any operational changes subject to issuance of a new or revised industrial wastewater discharge permit, expansion, remodeling or rebuilding of any non-residential building, structure, or premises, currently connected to the wastewater system, in a manner which increases the loading parameters, an additional capacity fee shall be due. In no instance shall a refund be granted if the rebuilding, remodeling or expansion of a Non-Residential User facility decreases the size of the building or the loading parameters. The additional capacity fee for the expansion, remodeling or rebuilding of any non-residential building, structure, or premises, currently connected to the wastewater system, in a manner which increases the loading parameters, shall be calculated as follows: ACI' = NCP— OCF Wherein, "ACE' is the additional capacity fee; "NCF" is the new capacity' .fee calculated per Section 5(b)(iii)(A) with the values of the loading parameters (DF, BOD and TSS) to be determined based on the facility after the expansion, remodeling or rebuilding (note: this is not to be the incremental increase in loading — it is to represent the total loading of the facility); and "OCF" is the. old capacity fee calculated per Section 5(b)(iii)(A) with the values of the loading parameters to be based on the facility prior to any expansion, remodeling or rebuilding. 1. 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 has received a relocation credit per Section 6. c. Annual Economic Adjustment to Capacity Fee. On July I of each year, commencing on July I, 2014, the capacity fees and unit costs described herein shall be adjusted to account for increases or decreases in the index set forth below. The capacity fees and unit costs shall be adjusted as follows. I. Annual Economic Adjustment to Capacity Fee for Residential Customers. The capacity fee for residential customers shall be adjusted in accordance with the following formula: NCFRes = OCFRes + ((OCFRes) x (ENR Annual Change)) Wherein, �� "NCFRes" is the new or adjusted capacity fee for residential.dustomersfor the upcoming fiscal year; "OCFRes" is the ;capacity fee in effect 'during the current fiscal year; and. "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. 2. Annual Economic Adjustment to Capacity Fee for Accessory Dwellings. The capacity fee for accessory dwellings shall be adjusted in accordance ,with the following formula: • NCFAcc = OCFAcc + ((OCFAcc) x (ENR Annual Change)) Wherein, "NCFAcc" is the new or adjusted capacity fee for accessory dwellings for'the upconiing fiscal year; "OCFAcc" is the capacity fee in effect during the current fiscal year;_and "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. 3. Annual Economic Adjustment to Capacity Fee for Non- Residential Customers. The unit costs for DF, BOD and TSS used in calculating the capacity fee for non-residential customers shall each be adjusted in accordance with the following formula: NUC = OUC + ((OUC) x,(ENR Annual Change)) Wherein, "NUC" is the new or adjusted unit cost for DF', BOD or TSS for non-residential 'customers for the upcoming fiscal year; "OUC" is the unit cost for DF, BOD or TSS in effect during the current fiscal year; and "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. /DO d. Computation and Payment olCapacity Fees. General. The Direetoc:or his/her designee shall compute all fees as set forth in this-resolution. Payment for the capacity fees shall be made in full prior to connection to the wastewater utility; or discharge of wastewater from the facility if there is already a capacity to the wastewater utility. 2. Mixed Use. Parcels that mix Residential Users and Non- Residential Users must be separately metered so Residential Users are served by a meter(s) that is separate from the meter(s) serving Non-Residential Users. 3. Refund Applications Based on 2008 Wastewater Capacity Fee Paid. Current owners of development that paid a wastewater capacity fee pursuant to Resolution 2008-097 may apply for a refund of the difference between the that fee and the wastewater capacity fee imposed by this resolution ("current fee"), subject to the following: a. To be eligible for a refund, current development owners must certify in writing to the City that the owner has not recovered or is not recovering from third parties such as tenants or others the amount of the prior fee paid or the amount by which the prior fee exceeds the current fee. b. Any refunds pursuant to this provision shall only be paid from existing, un-obligated, unspent Fee revenue balances. The City will have no obligation to pay refunds to any owner absent' sufficient existing, un- obligated, unspent Fee revenue balance available for that purpose. c. If existing, un-obligated, unspent Fee revenue balances are insufficientto cover eligible applications for refund, such eligible applications shall be paid refunds a pro rata basis in accordance with applicable law. 6. Allowance for Industrial Relocation Credit. a. Qualification for Industrial Relocation Credit Applicability. This section shall apply to Industrial Wastewater only, not to domestic wastewater. If the transfer of an industry discharging Industrial Wastewater to a different parcel of land does not impose any /o/ additional burden on the City's wastewater utility, a credit, which shall be referred to as a relocation credit, maybe:allowed,provided that: A. 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; B. 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. C. 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 wastewater utility. D. Disconnection. The connection to the wastewater utility at the prior parcel has been disconnected and capped, the meter has been removed, and the account closed..'Any subsequent use of the prior parcel requiring connection to the wastewater system will pay a new wastewater capacity fee in accordance with this resolution. E. Capacity. There is adequate capacity in the City's wastewater utility to accommodate connection of the industrial operation to be transferred. ii. Basis for Relocation Credit. The capacity fee for the relocated industrial operation shall be calculated per Section 5(b)(iii)(A). If the loading parameters (DE, BOD, TSS) for the industrial operation at its new location are equivalent to the loading parameters for the industrial operation at its prior location, no additional capacity fee shall be applied. If the loading parameters,for the industrial operation at its new location will be increased over the loading parameters for the industrial operation at its prior location, then an additional capacity fee shall be calculated per Section 5(b)(iii)(D). 7. Capacity Fees for Restaurants and Laundromats Using Best Available Technology. If a restaurant or laundromat applies for a wastewater capacity fee and installs and continues to use the mostwater efficient hardware, fixtures, and systems (Best Available Technology) as determined by the Director, the wastewater capacity fee will be 50% less than the fee determined'by 12. /0g 8. Use of Fee.Revenue. In accordance with Government Code Section 6601'3(c), the revenues,raised by payment of the Fee shall be placed in a.separate; interest bearingaccount:to permit accounting for such revenues and the interest which they generate. Suchrevenues and interest shall be used only for the Facilities and the purposes for which the Fee was coll'ected, which are the following: a. To pay for acquisition of the Facilities; b. To pay for 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 12 below; and e. To pay for and/or reimburse costs of program development and ongoing administration and maintenance of the Fee program, including, but not limited to, the cost of studies, legal costs, and other costs of updating the Fee. 9. Standards. The Standards upon which the need for the Facilities is based are the standards of the City, including the standards contained in the General Plan and its FIR and those City standards reflected in the Report. 10. Periodic Review. In accordance with Government Code Section 66013(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:. a. A description of the charges depositedinthe 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. /03 ii. Each public improvement, on which charges were expended that was completed during that fiscal year. iii. Each public improvement that isanticipated 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 10 may be included in the City's annual financial report. The information prescribed in this Section 10 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 areused 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. 11. Subsequent Analysis and Revision of the Fee. The Fee set forth 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 remain reasonably related to the impacts of development within the City of Petaluma and areas included in the City's General Plan. The City Council may revise the Fee to incorporate findings and conclusions of further studies and any standards in General Plan and/or the General Plan EIR,.as well as increases due to inflation and increased construction costs. 12. 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 agreementshall 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, /Ott credit pursuant to this section shall not be adjusted for inflation or any other, factor. Credit provided pursuant to this section isnot 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 developerscertifying in writing to the City that the cost of constructing the facility which resulted man excess credit was not passed on to homeowners, and indemnifying the City from land owner claims for reimbursement under Government Code Section 66000 el 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. 13. Effective Date. This resolution shall become effective 60 days from the date of its adoption in accordance with California Government Code section 66017, subdivision (a). 14. Severability. Each component of the Fee and all portions of this Resolution are severable. Should any individual component of the Fee or other provision of this Resolution be adjudged to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective, and the Fee shall be fully effective except as to that component that has been judged to be invalid. 15. Supersession/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 this resolution. 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. /0C