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HomeMy WebLinkAboutResolution 2014-186 N.C.S. 12/01/2014Resolution No. 2014-186 N.C.S. of the City of Petaluma, California AMENDING THE CURRENT WASTEWATER CAPACITY FEE RESOLUTION FOR NEW DEVELOPMENT IN THE CITY OF PETALUMA, RESOLUTION NO. 2014-041 N.C.S., ADOPTED MARCH 3, 2014 TO ADD PROVISIONS GOVERNING TIME FOR FEE PAYMENT, RECONCILIATION, ALLOWANCE FOR NON-RESIDENTIAL USER RELOCATION CREDIT AND OTHER MATTERS 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, 3008; and, WHEREAS, an Environmental Impact Report ("EIR") was prepared for the General Plan (State Clearinghouse 42004082065) 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. 3014-041 N.C.S., adopted March 3, 2014; 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 gro\vth 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 Resolution No. 3014-186 N.C.S. Page I proportionate fair share of long-term infrastructure improvement costs as entitlements are granted" and program B: "Initiate design of long term infrastructure improvements in a timely manner to ensure their completeness to coincide with demand'; and, WHEREAS, Goal 8-0-4 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, solids residual management and reuse; and, WHEREAS, to plan for anticipated growth under General Plan 2025, the City Department of Water Resources and Conservation and its consultants undertook 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 wastewater capacity necessary to maintain the level of such services provided to the community and to find new development's share of the costs of maintaining adequate capacity for 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 FIR describe the facilities necessary to provide adequate wastewater capacity in the City; and, WHEREAS, the Report, the General Plan and the General Plan EIR 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. 2014-186 N.C.S. Page 2 WHEREAS, The Wastewater Capacity Fee is not a "tax" as defined in Section 1, paragraph (e) of Article XIlIC of the California Constitution ("Proposition 26") because such fee is imposed for a specific benefit conferred or privilege granted directly to the payer 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 payer 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, perl'orming 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 properly 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 Aparhnen/ Association of Los Angeles County r. Cih, of Los .Angeles (2001) 24 Cal.4a' 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; and, WHEREAS, Petaluma Municipal Code Section 19.32.050 authorizes the City Council to adopt administrative guidelines to provide procedures for calculation. payment and other administrative aspects of the wastewater capacity fee. Resolution No. 1014-186 N.C.S. Page 3 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. 2014-041 adopted March 3, 2014; 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 treats wastewater for 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 1 of the Government Code ("Mitigation Fee Act'), commencing with Section 66000, Section 54 of the City of Petaluma Charter, and Chapter 19.32 of the Petaluma Municipal Code, collectively and separately. D. The Record establishes: 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 estimated cost of constructing and/or acquiring the Facilities; and Resolution No. 301.4-186 N.C.S. Page 4 3. The method of allocation of the Fee to a particular development bears a fair relationship and is roughly proportional to each development's burden on and benefits from the Facilities to be funded by the Fee, in that the Fee is calculated based on the wastewater facilities demand each particular development will generate. 4. The Report is a detailed analysis of the fair proportion of costs for sewer improvements to be applied to future development and/or existing customer expansions, based on the increased demand placed on the overall system. 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 (Govermnent 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: 1. Definitions. a. "Accessory Dwelling" shall mean a second unit which meets the standards set forth in Section TWO 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 ol'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 Resolution No. 2014-186 N.C.S. Page 5 savings and loans; beauty salons: book stores: discount stores and centers; dry cleaners; drug stores; eating and drinking establishments; furniture stores and outlets: general merchandise stores: hardware stores; home furnishings and improvement centers; laundromats; liquor stores; service stations; shopping centers; supermarkets; bicycle shops; cameras and photographic supply stores; convenience stores; department stores: drug stores and pharmacies; jewelry stores; luggage and leather goods stores: sporting goods and equipment stores; stationery stores; collectible stores: second hand goods stores: religious goods stores: hobby materials stores: small wares stores; plant sales; bowling alleys: coin-operated amusement arcades: dance halls, clubs and ballrooms; electronic game arcades; ice skating and roller skating establishments: pool and billiard rooms; amusement and theme parks: go-cart tracks; golf driving ranges; miniature golf courses; water slides: banks and trust companies: credit agencies: holding companies; lending and thrift institutions; securities/commodity contract brokers and dealers; fueling stations and gas stations; security and commodity exchanges; vehicle finance leasing agencies; restaurants, cafes and coffee shops; and movie theatres and civic theatres. 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. It shall also mean the expansion of operations of an existing customer due to increased intensity of operations, which may include but is not limited to, increased hours of operations, increased production, or any other changes that result in an increased discharge of Industrial Wastewater. 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 Citys 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 establislunent, 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 Resolution No. 3014-186 N.C.S. Page 6 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. "hcC' means hundred cubic feet. One hef is equivalent to 748 gallons. k. "Industrial" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation as established in the Implementing Zoning Code, Ordinance No. 2300 N.C.S., or any successor ordinance, for the manufacture, production, assembly, and processing of consumer goods, uses incidental to those activities, and research, development and warehousing. Industrial land uses include, but are not limited to: assembly; contractor's storage yards; fabrication; lumber yards; manufacturing; outdoor stockyards and service yards; printing; processing; warehouses and distribution centers; wholesale and heavy commercial enterprises; clothing, fabric and other product manufacturing; electronics, equipment, and appliance manufacturing; metal products fabrication, machine and welding shops: paper product manufacturing: food and beverage product manufacturing; small-scale manufacturing; lumber and wood product manufacturing: machinery manufacturing; motor vehicle and transportation equipment manufacturing; stone and cut stone product manufacturing; structured clay and pottery product manufacturing: processing of building materials, chemicals, fabricated metals, paper products, machinery, textiles, and/or equipment: and collection, sorting and processing enterprises. "Industrial Wastewater" means any non-domestic wastewater which will enter into the City's sanitary sewer by being discharged from any industrial, manufacturing, commercial or business establishment or process: or from the development, recovery, or processing of any natural resource, in. "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 Resolution No. 2014-186 N.C.S. Pnge 7 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, triples, fourplex, townhouse or condominium, apartment house, mobile home park or other multi -residential establishment, designed for occupancy for living purposes by more than one family, which is divided into separate residential units, each of which is designed for occupancy by one family only. q. "TSS"' means total suspended solids. 2. Wastewater Canacitv Fee Imoosed. 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 el seg.) 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 Imoosinu 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 Pavment. 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 Resolution No. 3014-186 N.C.S. Pine 8 established and funds appropriated and for which the City has adopted a proposed construction schedule prior to issuance of the building pen -nit 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) and (B) shall apply. b. The Fee shall be charged and paid for each non-residential Development upon issuance of the building permit for such non-residential Development. C. The Fee shall be charged and paid for each Mixed Development upon the times specified in this Section 4 that apply to such Mixed Development. For example, if a Mixed Development includes residential Development and non-residential Development, and the Fee is to reimburse the City for expenditures previously made, or the City has made the required determination to permit requiring payment of the Fee upon issuance of the building permit, and the procedures in Government Code section 66007(b)(2)(A)-(B) do not apply, the Fee as applicable to the entire mixed development shall be paid upon issuance of the building permit for the Mixed Development. If a Mixed Development includes residential and non-residential development, and the Fee is not to reimburse the City for expenditures previously made or the City has not made the required determination to pennit 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. d. The fee shall be charged and paid in full for each industrial development upon issuance of the building permit for such development, or upon issuance of a new or revised industrial wastewater discharge permit, subject to applicable law. Alternatively, The fee for industrial development meeting specific criteria shall be as set forth in the Resolution for Establishing Administrative Guidelines Pursuant to Petaluma Municipal Code Section 19.32.050 for the Payment of Wastewater Capacity Fees for Qualifying Industrial Development. 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. Resolution No. 2014-186 N.C.S. Page 9 b. Canacitv Fee. i. Residential Users. A. Dwelling Unit — Single Family. The capacity fee shall be $7.166 per dwelling unit. B. Dwelling Unit — Multi Family. The capacity fee shall be $4,744 per dwelling unit. ii. Accessory Dwelline. 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 l 1 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 150 0.313 0.313 4,597.21 foot Barber 1,000 square 40 0.083 0.083 1,225.92 foot Bowling alley Per alley 150 0.313 0.313 4,597.21 Church 1,000 square 60 0.125 0.125 1,838.88 foot Convalescent home Per room I 90 0.188 0.188 2,758.33 Grocery w/ disposal 1,000 square 60 0.125 0.125 1,838.88 foot Grocery w/o disposal 1,000 square 60 0.125 0.125 1,838.88 foot Halls ono food service) 1,000 square 90 0.188 0.188 2,758.33 foot Hospitals Per bed 175 0.365 0.365 5,363.41 Hotels and motels with Per room 90 0.188 0.188 2,758.33 restaurants Resolution No. 2014-186 N.C.S. Page 10 Non -Residential Hotels and motels without restaurant Misc. Commercial/Industrial Mortuary Offices, medical and professional Restaurants Restaurants, fast food Retail School Service station Spas and health clubs Taverns/bars Theater Source: City of Petaluma Unit Per room 1,000 square foot 1,000 square foot 1,000 square foot 1,000 square foot 1,000 square foot 1,000 square foot Per 100 students Per fuel pump Per shower head Per seat 1,000 square foot 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) Flow BOD TSS 27,583.25 1.188 17,469.39 0.125 Charge (gpd) (ppd) (ppd) 919.44 90 0.188 0.188 2,758.33 60 0.125 0.125 1,838.88 60 0.125 0.125 1,838.881 60 0.125 900 1.877 570 1.188 60 560 30 90 20 90 0.125 1.168 0.063 0.188 0.042 0.188 0.125 1,838.88 1.877 27,583.25 1.188 17,469.39 0.125 1,838.88 1.168 17,162.91 0.063 919.44 0.188 2,758.33 0.042 612.96 0.188 2,758.331 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 or the Non - Residential User may request reconciliation of the capacity fee. For the reconciliation, the City shall monitor and tract: 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 recalculate the capacity fee using the BOD and TSS values estimated for the initial capacity fee calculation and the actual average flows as monitored and recorded by the City. Reconciliation of Wastewater Capacity Fees for Qualifying hidustrial Developments shall be in accordance with the Resolution for Establishing Administrative Guidelines Pursuant to Petaluma Nhmicipal Code Section 19.32.050 for the Resolution No. 201.1-186 N.C.S. Page I I Payment of Wastewater Capacity Fees for Qualifying Industrial Development. 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 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 = NCP — OCP 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 "OCP" 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. For Qualifying Industrial Developments, "OCF" shall be based on the Vested Capacity as defined in the Resolution for Establishing Administrative Guidelines Pursuant to Petaluma Municipal Code Section 19.32.050 Resolution No. 2014-186 N.C.S. Page 12 for the Payment of Wastewater Capacity Fees for Qualifying Industrial Development. 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 Adiustment to Canacity 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 Adiustment to Capacity Fee for Residential Customers. The capacity fee for residential customers shall be adjusted in accordance with the following formula: NCFRes = OCFRes + ((OCFRes) x (ENR Annual Change)) Wherein, "NCFRes" is the new or adjusted capacity fee for residential 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 Adiustment to Can_ acity Fee for Accessory Dwellinus. 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. Resolution No. 201.4-186 N.C.S. Pale 13 3. Annual Economic Adiustment to Canacity Fee for Non - Residential Customers. The unit costs for DF, BOD and TSS used in calculating the capacity fee for non-residential customers shall each be adjusted in accordance with the following formula: NUC = OUC + ((OUC) x (ENR Annual Change)) Wherein, "NUC" is the new or adjusted unit cost for DF. BOD or TSS for non-residential customers for the upcoming fiscal year; "OUC" is the unit cost for DF. BOD or TSS in effect during the current fiscal year; and "ENR Annual Change" is the percentage change in the Engineering News Record Construction Cost Index for the San Francisco area from December for the second prior calendar year to December for the prior calendar year. d. COmnlltation and Pavment of Canacity Fees. 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. Payment of the capacity Pees for Qualifying Industrial Developments shall be in accordance with the Resolution for Establishing Administrative Guidelines Pursuant to Petaluma Municipal Code Section 19.32.050 for the Payment of Wastewater Capacity Fees for Qualifying Industrial Development. 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 Annlications Based on 2008 Wastewater Canacity 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 lice Resolution No. 3014-186 N.C.S. Page 14 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, robligated, 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 Non -Residential User Relocation Credit. a. Oualification for Non -Residential User Relocation Credit Annlicabilitv. This section shall apply to Non -Residential User development only, not to residential development. If the transfer of an a Non -Residential User 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 Non -Residential 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 malting claim to the relocation credit owned the Non -Residential operation prior to the transfer and will continue to own the Non - Residential operation at the new location. C. Abandonment. The owner has demonstrated to the satisfaction of the City that the Non -Residential operation has been abandoned from the parcel from which the transfer has occurred, or presented a certification in writing that such Non -Residential operation will be abandoned within six (6) months of the City approving an application for connection. Should the Non -Residential 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 Non -Residential 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 Resolution No. 2014-186 N.C.S. Pale 15 subsequent use of the prior parcel requiring connection to the wastewater system will pay a new wastewater capacity lee in accordance with this resolution. F. Capacity. There is adequate capacity in the City's wastewater utility to accommodate connection of the Non - Residential operation to be transferred. ii. Basis for Relocation Credit. The capacity fee for the relocated Non -Residential operation shall be calculated per Section 5(b) (iii) (A). If the loading parameters (DF, BOD, TSS) for the Non - Residential operation at its new location are equivalent to the loading parameters for the Non -Residential operation at its prior location, no additional capacity fee shall be applied. If the loading parameters for the Non -Residential operation at its new location will be increased over the loading parameters for the Non - Residential operation at its prior location, then an additional capacity fee shall be calculated per Section 5(b) (iii) (D). 7. Canacitv Fees for Restaurants and Laundromats Usina Best Available Technolouv. 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 Technology) as determined by the Director, the wastewater capacity fee will be 50% less than the fee determined by 13. 8. Use of Fee Revenue. In accordance with Govern vent 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 finds from other sources including funds from other public entities, unless such finds 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 Resolution No. 301.1-186 N.C.S. Page 16 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 Govermnent 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: 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 Resolution No. 2014-186 N.C.S. Page 17 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 Analvsis 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. 13. Credits and Reimbursement for Develoner 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 it credit in accordance with the following: a. Credit Amount. The credit shall be in the amount of the lowest bid received for construction of the facility, as approved by the Director. However, in no event shall a credit pursuant to this provision exceed the estimated cost of the developer constructed facility as identified in the Report. 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 City approval 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 Resolution No. 3014-186 N.C.S. Page IS 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 el seq. and Section 66001 in particular. If remaining fee revenues after all of the facilities have been constructed or acquired are insufficient to cover all claims for reimbursement of fee revenues, such claims, including claims for reimbursement of excess credit, shall be reimbursed on a pro rata basis in accordance with applicable law. 13. Effective Date. This resolution shall become effective 60 days from the date of its adoption in accordance with California Government Code section 66017, subdivision (a). 14. Severabilitv. 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 filly effective, and the Fee shall be fully effective except as to that component that has been judged to be invalid. 15. Sunersession/Reneal/Savines. All resolutions and parts thereof in conflict with the provisions of this resolution are superseded and repealed, effective on the effective date of this resolution. However, violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this resolution, under any chapter, ordinance, or part of an ordinance, or resolution or part of a resolution, shall be deemed to remain in foll force for the purpose 01' sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal. Resolution No. 3014-186 N.C.S. Page 19 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 tile ///,,,�ti 'e -' kppro,4ed as to Council of the City of Petaluma at a Regular meeting on the I" day of December, (/fgrm: 2OI4. by the following vote: I City Atto�ncy JJ AYES: Barrett, Mayor Glass. Harris. I lealy, Vice Mayor Kearney. Miller NOES: None ABSENT: Albertson ABSTAIN: ATTEST: �None � City Clerk v Cht . or Resolution No. 3014-186 N.C.S. Page 19