HomeMy WebLinkAboutResolution 2014-040 N.C.S. 3/3/2014 Resolution No. 2014-040 N.C.S.
of the City of Petaluma, California
REPLACING THE CURRENT TRAFFIC DEVELOPMENT IMPACT FEE
RESOLUTION FOR FUTURE DEVELOPMENT WITHIN THE CITY OF PETALUMA,
RESOLUTION NO. 2012-125 N.C.S., ADOPTED AUGUST 27,2012,TO AMEND
PROVISIONS 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 planning area which includes the
City and land outside the City in unincorporated Sonoma County which must also he 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 City is developed as anticipated in the General Plan 2025; 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 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 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,
Resolution No. 2014-040 N.C.S. Page 1
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 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, 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-I: 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-G-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 impacts 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 other users 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
Resolution No. 2014-040 N.C.S. Page 2
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
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 this Resolution; and,
WHEREAS, the Report identifies the disputed funds as 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
binding obligations 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 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 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.4t1 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,
Resolution No. 2014-040 N.C.S. Page 3
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 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.
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 the future 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 I 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 1 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
Resolution No. 2014-040 N.C.S. Page 4
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 Report, include the following:
• Rainier Avenue Extension and interchange (locally preferred
alternative)
• Caulfield Lane Extension
• Old 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
development 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 generate new residents and employees who live, work, and/or
shop in Petaluma and who generate or contribute to the need for traffic
facilities as follows:
Resolution No.2014-040 N.C.S. Page 5
• New residents and employees will add vehicle trips to transportation
infrastructure, including roadways, intersections, interchanges and
traffic signals.
• 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 that there are no existing deficiencies
in any of the facilities to be included in the City's Traffic Development
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, or according 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 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. 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 development will
generate.
Resolution No. 2014-040 N.C.S. Page 6
8. The Report is a detailed analysis of how traffic 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 .074% of the total
Fee as shown in Table 3-11 and Appendix C of the Report.
ADOPTION OF FEE
NOW, THEREFORE, BE 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/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;
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;
Resolution No. 2014-040 N.C.S. Page 7
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, 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.
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 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.
h. "Institution" shall mean institutional Development as defined in the
Report.
Resolution No. 2014-040 N.C.S. Page 8
"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. 10l Interchange and the Rainier Avenue/U.S.
101 Interchange 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
Resolution No. 2014-040 N.C.S. Page 9
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 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, 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 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
Resolution No.2014-040 N.C.S. Page 10
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 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
Resolution No.2014-040 N.C.S. Page 11
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 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. 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.
Resolution No. 2014-040 N.C.S. Page 12
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 orgifts 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 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.
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
Resolution No.2014-040 N.C.S. Page 13
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
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
reitnbursement 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.
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 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
Resolution No. 2014-040 N,C.S. Page 14
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.
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 Redevelopment Supplement. 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 courts finally recognize the obligations of the City as successor to the
former PCDC pursuant to the above-described cooperative agreements
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:
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 fees paid attributable 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,
Resolution No.2014-040 N.C.S. Page 15
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.
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 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.
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 with the provisions of this resolution
are superseded and repealed, effective on the effective date of this resolution.
Resolution No.2014-040 N.C.S. Page 16
However, violations, rights accrued, liabilities accrued, or appeals taken, prior to
the effective date of this resolution, under any chapter, ordinance, or part of an
ordinance, or resolution or part of a resolution, shall be deemed to remain in full
force for the purpose of sustaining any proper suit, action, or other proceedings,
with respect to any such violation, right, liability or appeal.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced andadopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the-3rd day of March, 2014, or :
by the following vote: `'/��tcjr)
City Attorney—
AYES: Albertson, Bards, Healy, Vice Mayor Kearney, Miller
NOES: Barrett,Mayor Glass
ABSENT: None
• ABSTAIN: None
OA;
Qictikki
ATTEST:
City Clerk Mayor
Resolution No. 2014-040 N.C.S. Page 17
EXHIBIT A
TRAFFIC DEVELOPMENT IMPACT FEE
Land6Use Type Fee'Amount £Unit of Measurements
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 square 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
Resolution No. 2014-040 N.C.S. Page 18