HomeMy WebLinkAboutResolution 2014-041 N.C.S. 3/3/2014 Resolution No. 2014-041 N.C.S.
of the City of Petaluma, California
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 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 ("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 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 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,
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
Resolution No.2014-041 N.C.S. Page
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 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 of the 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, disposal and 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 financial studies to 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 hereby incorporated by reference; and,
WHEREAS, the Report, the General Plan and the General Plan EIR describe the
facilities necessary to provide adequate wastewater capacity in the City; and,
WHEREAS. the Report, the General Plan and the General Plan El 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 General 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 of the 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,
Resolution No.2014-041 N.C.S. Page 2
WHEREAS, The Wastewater Capacity 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 Wastewater Capacity 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`h 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; 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 El R, and all correspondence received at or prior to the
Resolution No. 2014-041 N.C.S. Page 3
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.
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 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 19.28 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 is calculated based on the relationship between the value of the City's
existing wastewater facilities, and the value of upgrades and additional
capacity needed 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 the projected 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.
Resolution No. 2014-041 N.C.S. Page 4
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.
5. Pursuant to Government Code Section 66483(f), 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
element of 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 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
Resolution No. 2014-041 N.C.S. Page 5
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, cafés
and coffee shops; and movie theatres and civic theatres.
d. "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 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 (1) 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 from 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 hcf is equivalent to 748 gallons.
Resolution No. 2014-041 N.C.S. Page 6
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 andservice
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.
1. "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
Resolution No.2014-041 N.C.S. Page 7
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.
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 times, 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.
Resolution No.2014-041 N.C.S. Page 8
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.
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 shall be applied as outlined in Table
12 below from the page 11 of the Report:
Table 12
City of Petaluma
Wastewater Capacity Charge
Non-Residential Discharge Characteristics
Non-Residential Unit Flow BOD TSS Charge
(gpd) (ppd) (ppd)
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 0.125 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 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
Resolution No. 2014-041 N.C.S. Page 9
Non-Residential Unit Flow BOD TSS Charge
(gpd) (ppd) (ppd)
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 12. 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 or more, the City shall refund
Resolution No. 2014-041 N.C.S. Page 10
the total difference between the original capacity fee
paid and the recalculated 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 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:
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,
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 1 of each
year, commencing on July 1, 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.
1. Annual Economic Adjustment to Capacity Fee for
Residential Customers.
The capacity fee for residential customers shall be
adjusted in accordance with the following formula:
Resolution No. 2014-041 N.C.S. Page 11
NCFRes = OCFRes + ((OCFRes) x (ENR Annual
Change))
Wherein,
"NCFRes" is the new or adjusted capacity fee for
residential customers for 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 upcoming 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, BUD 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.
Resolution No. 2014-041 N.C.S. Page 12
d. Computation and Payment of Capacity Fees.
1. General. The Director 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 insufficient to 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
Resolution No. 2014-041 N.C.S. Page 13
Applicabilit%. 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
additional burden on the City's wastewater utility, a credit, which shall be
referred to as a relocation credit, may be 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 (DF, 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 most water efficient hardware, fixtures, and systems (Best Available
Resolution No.2014-041 N.C.S. Page 14
Technology) as determined by the Director, the wastewater capacity fee will be 50% less
than the fee determined by 12.
8. Use of Fee Revenue.
In accordance with Government Code Section 66013(c), the revenues raised by payment
of the Fee shall be placed in a separate, interest bearing account to permit accounting for
such revenues and the interest which they generate. Such revenues and interest shall be
used only for the Facilities and the purposes for which the Fee was collected, which are
the following:
a. To pay for acquisition of the Facilities;
b. To pay for 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 EIR 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 deposited in the account.
b. The beginning and ending balance of the account and the interest earned from
investment of moneys in the account.
c. The amount of charges collected in that fiscal year.
d. An identification of all of the following:
Resolution No. 2014-041 N.C.S. Page 15
i. Each public improvement on which charges were expended and the amount of
the expenditure for each improvement, including the percentage of the total
cost of the public improvement that was funded with those charges if more
than one source of funding was used.
ii. Each public improvement on which charges were expended that was
completed during that fiscal year.
iii. Each public improvement that is anticipated to be undertaken in the following
fiscal year.
iv. A description of each interfund transfer or loan made from the capital
facilities fund. The information provided, in the case of an interfund transfer,
shall identify the public improvements on which the transferred moneys are,
or will be, expended. The information, in the case of an interfund loan, shall
include the date on which the loan will be repaid, and the rate of interest that
the fund will receive on the loan.
The information required pursuant to this Section 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 are used to reimburse the local agency or to reimburse a
person or entity who advanced funds under a reimbursement agreement or contract for
facilities in existence at the time the charges are collected.
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 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:
Resolution No.2014-041 N.C.S. Page 16
a. Credit Amount. The credit shall be in the amount of the lowest bid received for
construction of the facility, as approved by the Director. However, in no event
shall a credit pursuant to this provision exceed the current facility cost. For the
purposes of this section, such current facility cost shall be the amount listed in the
Report for that particular facility as subsequently adjusted pursuant to this
Resolution prior to issuance of the building permit for that facility. Once issued,
credit pursuant to this section shall not be adjusted for inflation or any other
factor. Credit provided pursuant to this section is not transferable.
b. Application of Credit. Credit pursuant to this section may be applied by
developers against the Fee applicable to a particular project until the credit is
exhausted or an excess credit results. The total credit shall be divided by the
number of units (for a residential project) to determine the amount of credit which
can be applied against the Fee for each unit and, if the credit per unit is less than
the Fee per unit, the developer shall pay the difference for each unit. If a credit
pursuant to this section is less than the Fee applicable to a particular non-
residential development project, the developer shall pay the City the balance in
cash.
c. Reimbursement for Excess Credit. Reimbursement for excess credit shall only be
from remaining unspent Fee revenues. Once all the Facilities have been
constructed or acquired and to the extent Fee revenues are sufficient to cover all
claims for reimbursement of Fee revenues, including reimbursement for excess
credit, developers with excess credit shall be entitled to reimbursement, subject to
such developers certifying in writing to the City that the cost of constructing the
facility which resulted in an excess credit was not passed on to homeowners, and
indemnifying the City from land owner claims for reimbursement under
Government Code Section 66000 et seq. and Section 66001 in particular. If
remaining fee revenues after all of the facilities have been constructed or acquired
are insufficient to cover all claims for reimbursement of fee revenues, such
claims, including claims for reimbursement of excess credit, shall be reimbursed
on a pro rata basis in accordance with applicable law.
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,
Resolution No. 2014-041 N.C.S. Page 17
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 and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 3rd day of March,2014, fo
by the following vote:
V
City Attornc%
AYES: Albertson,Barrett,Mayor Glass, Harris, Kealy, Vice Mayor Kearney,Miller
NOES: None
ABSENT: None
ABSTAIN: None /
OACATTEST: •!� a �_�L�;
City Clerk ` Mayor
Resolution No.2014-041 N.C.S. Page 18