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HomeMy WebLinkAboutStaff Report 1.A 08/25/2003t , City of Petaluma, Californiap Memorandum City Manager's Office, 11 English Street, Petaluma, CA 94952 (707) 778 -4345 Fax (707) 778 -4419 E- mail. citymkiaci.Uetaluma.ca.rus DATE: August 19, 2003 TO: Mayor and Members of the City CounYI/ FROM: Michael A. Bierman, City Manager SUBJECT: Development Impact Fees Attached are two reports that have been provided by our consultant, Scott Thorpe, regarding the Development Impact Fees. The first report is the Master Facilities Plan for the City. This report provides a long -range program based on a compilation of projects identified by staff as being needed for the City through theoretical General Plan build -out. This plan forms the basis for the costing of the Development Impact Fees. The plan provides for three groups of projects, as follows: • Maintenance, repair and rehabilitation of the City's varied infrastructure, which includes streets, public safety facilities and other public facilities. • Addresses the need for projects that are needed to serve future development, which includes widening of streets, additional parkland development and the construction of a new fire station. • Enhance the quality of life for all City residents and spur economic growth in the community. These include the construction of a new community center or the expansion of the existing library. The second document provides the calculation and nexus report for the Development Impact Fees. The calculation of the impact fees is a direct function of the nearly $450 million cost of capital projects identified in the Master Facilities Plan. In addition to the reassessment of existing fees, several new fees are proposed. A comparison of the existing fees and the proposed new fees for a single- family residence are shown in the following table. Name of New Fee Old Fee Designation New Old Change Law Enforcement Facilities New Fee $ 282 $ - Fire Protection Facilities New Fee 332 - Bridges, Signals & Thoroughfares Traffic Mitigation 5,166 3,007 71.80% Geneal Government Facilties Community Facilities 517 Library Expansion Facilities Community Facilities 242 Public Meeting Facilities Community Facilities 622 Sub -Total 1,381 951 45.22% Aquatic Center Facilities Park Develoment 147 Parkland and Open Space Acquisition Park Develoment 6,774 Sub -Total 6,921 4,214 64.24% Moderate Hosuing Impact Fee Housing In -Lieu 6,700 2,400 179.17% Total Impact Fees $ 20,782 $ 10,572 96.58% NMAJ The fees for other types of development are shown on Schedule 2.1, page 26 of the document entitled "Development Impact Fee Calculation and Nexus Report". I have also attached a copy of the City's current impact fee schedule. This study did not include impact fees for Water Connections, Sewer Connections or Storm Drainage Impact. These fees were updated in the recent Rate Study that the Department of Water Resources completed. SPECIAL ®EVELCE)MENT Z=EES CITE' ®F F)ETALUMAO CA .4 Y85$ JULY 19 2CC3 CITY ®1= PETALUMA C ®MMUNITY DEVEL ®PMENT DEPARTMENT 11 ENGLISH STREET PETALUMA, CA 94952 Telephone 707/778 --4301 / Fax 707/778 - "98 E -Mail cdd @cl.petaluma.ca.us Web Dante http: / /www.cf.petal"ma.ca.us SPECIAL DEVELOPMENT FEES This booklet is a collection of general descriptions of special development fees imposed on new construction in the City of Petaluma. It is intended to serve as a general guideline describing when a fee applies, how it is calculated, and when it is collected. Each description also includes a reference to applicable ordinances, resolutions, and Municipal Code sections where more detailed information can be obtained. This does not include the many general development fees collected as part of the building and planning permit process (i.e., subdivision application, building permits). Included are descriptions of the following fees; Sewer Connection Water Connection Community Facilities Development Storm Drainage Impact Dwelling Construction Park and Recreation Land Improvements School Facilities Traffic Mitigation Fee In -Lieu for Provision of Low Income Housing Applicants should be aware that all fees are subject to change by Council action. Current fees should be confirmed. For further information, contact the Planning Department, 11 English Street, Petaluma, California 94952; phone (707) 778 -4301. SEWER CONNECTION FEES APPLICABILITY Any connection to the public sewer is required to pay a sewer connection fee. CALCULATION OF FEE Sewer connection fees are established by resolution of the City Council. Fees are based upon the classification of user: residential; non - residential, excluding industrial; and industrial. Residential users pay $3,211.00 per unit (Accessory Dwelling $1,260.00). Non - residential (excluding industrial) users pay a fee based upon daily flow of wastewater discharged, $3,211.00 minimum. Industrial users fee is determined by individual application. TIME OF PAYMENT Sewer connection fees are calculated at building permit issuance. Fees for Non - Residential building permits are paid at building permit issuance. Fees for Residential building permits are paid before a final inspection is scheduled. Municipal Code 15.44 - 15.77 Ordinance #1543 Resolution #87 -114 Resolution #99 -224 July 8, 2003 WATER CONNECTION FEES APPLICABILITY Any new connection into the City water system must pay a connection fee. Service charges are applied when the City taps the main for the connection and installs the service and the meter box. A $325.00 credit may be applied when water mains and services are constructed and financed by the developer (15.08.040). CALCULATION OF FEE Water connection fees are established by resolution of the City Council. Charges are based upon the size of meter and the pressure zone from which service originates. An average single - family home in a subdivision which installs water mains and services will pay between $965 and $3,475. For further information contact the Water Department at 707/778 -4392. TIME OF PAYMENT Water connection fees are calculated at time of building permit issuance. Fees for non- residential and residential building permits are paid before a final inspection is scheduled. Municipal Code 15.08 Ordinance #1252 Resolution #9214 and #88 -93 and #91 -18 February 4, 2002 COMMUNITY FACILITIES DEVELOPMENT FEES PURPOSE The purpose of the Community Facilities Development Fee is to collect money for the construction of major public improvements by causing the cost of construction to be borne by those developments generating the need for the improvements. APPLICABILITY Construction of a new structure or addition to a non - residential structure, addition of one or more residential dwelling units on a developed parcel, except an accessory dwelling as defined by the Zoning Ordinance, or division of land. CALCULATION OF FEE Residential developments are charged $1,902.00 per dwelling unit. The fee for non- residential development is $26,648.00 acre for new development, $1.93 per square foot for building additions. Effective (January, 1992), through an administrative policy, there is a 50% reduction in this fee for any project subject to Traffic Impact Fees. TIME OF PAYMENT Fees are calculated at time of building permit issuance. Fees for non - residential permits are paid at building permit issuance. Fees for residential permits are paid before a final inspection is scheduled. Municipal Code 17.14 Ordinance #1311, #1383, #1449, #1469, #1680 April 3, 2002 STORM DRAINAGE IMPACT FEES PURPOSE In September 1982, the Petaluma City Council established Storm Drainage Impact Fees as a means of mitigating storm drainage impacts occurring as a result of development. The criteria established provides for either the payment of fees or the construction of on- or off -site detention areas, based upon the type of project. Fees collected are used by the City for the acquisition, expansion, and development of storm drainage improvements. APPLICABILITY This ordinance applies to all commercial, industrial, and residential projects. OPTIONS FOR COMPLIANCE Residential projects which create an increase in normal runoff exceeding two -acre feet may, as determined by the City Engineer, either provide on- or off -site detention equal to the calculated increase, or pay fees. Residential projects which create an increase in normal runoff of two -acre feet or less are required to pay fees. Commercial and industrial projects have the option of either paying fees or providing on- or off -site detention areas equal to the calculated increase in runoff. CALCULATION OF THE FEE Runoff Computation: The increase in runoff created by a given project is calculated for a 100 -year storm, utilizing runoff coefficients based upon the proportion of vegetated area to impervious surfaces, and expressed in acre -feet. Runoff coefficients are based upon the type of use, slope of the land, and percent of vegetation coverage. Commercial /Industrial: Projects pay a fee of $30,000 per acre foot of additional runoff. The amount of incremental runoff created is directly linked to the amount of landscaping provided. The maximum fee possible is $9,000 per acre of land. This would apply to a project with 20% or less landscaping. A project with 25% landscaping can expect a fee of $6,750 per acre, 30% would pay $6,300 per acre, and so on. Residential: Projects pay a fee of $15,000 per acre foot of additional runoff. Incremental runoff is dependent upon the density of a project and the amount of landscaping and open space provided. A high density project with 20% or less area in landscaping could expect to pay $4,500 per acre. A typical detached single - family subdivision would pay approximately $1,500 per acre. TIME OF PAYMENT Flood Mitigation fees for Commercial /Industrial are calculated at time of issuance of building permit on a per -lot basis, and are paid before a building permit is issued. Flood Mitigation fees for residential projects are calculated at Final Map. The fee is then equally dispersed over the number of units included in the Map. Payment of each unit's share is paid before a final inspection is scheduled. Municipal Code 17.30 Ordinance #1530, #1547 Resolution #9564, #9565, #9751 February 4, 2002 DWELLING CONSTRUCTION FEE PURPOSE Often referred to as the "bedroom tax ", this fee provides funds for expansion of park and recreational facilities. APPLICABILITY Every dwelling unit constructed in the city, except where a subdivision of real property is involved (see Park and Recreation Land Improvements Fee), is required to pay a dwelling construction fee. Projects which exceed four units on a single parcel of land are subject to Park and Recreation Land Improvement Fees instead. AMOUNT OF FEE For projects of four units or less on a single parcel of land, the amount of fee is based upon the number of bedrooms in the dwelling unit. A studio or one bedroom unit pays $120.00. An additional $60.00 is collected for each additional bedroom, up to a maximum of $240.00. The fee for projects consisting of five or more units will be calculated in the same manner as the Park and Recreation Land Improvement Fee (page 8). Mobile home project fees are calculated in the same manner, assuming 1.80 persons per dwelling unit. TIME OF PAYMENT Dwelling construction fees are calculated at time of building permit issuance. Fees are paid before a final inspection is scheduled, or prior to the issuance of a grading or public improvement permit for a mobile home park. Municipal Code 17.12 Ordinance #932, #1074, #1383 Revised February 4, 2002 PARK AND RECREATION LAND IMPROVEMENTS FEE Ia01 a M-1 The purpose of the Park and Recreation Land Improvements Fee is to provide funds for the acquisition, development, and improvement of neighborhood and community park and recreation facilities. APPLICABILITY Any residential project which involves the subdivision of land and any project which exceeds four dwelling units on a single parcel of land. CALCULATION OF FEE The amount of fee is based upon the density of the project, and on the fair market value of parkland and the cost of improvements as established annually by City Council Resolution. The following table is used for calculating park land acres per dwelling unit: Dwelling Units per Gross Acre Up to 6.5 6.6 to 10.5 10.6 to 25.5 Persons Per Dwelling Unit 3.18 1.90 1.80 Park Land Acres per Dwelling Unit .0159 .0095 .0090 The current cost of land and improvements is set at $249,928 per acre. A typical single - family project with a density of up to 6.5 units per acre will pay $3,974 per unit. Projects with a density of 6.6 to 10.5 units per acre pay $2,374 per unit, and those with density of 10.6 to 25.5 units per acre will pay $2,249 per unit. Projects which exceed four units on a single parcel of land use 1.8 persons per unit as a basis for calculating fees. OPTIONS FOR COMPLIANCE This ordinance also provides for crediting projects that dedicate and improve designated public park sites. TIME OF PAYMENT Park and recreation land improvement fees are computed for the total project at the time final or parcel map is approved. Fees are paid before a final inspection is scheduled. Municipal Code 20.34 Ordinance #1352 Resolution #96 -115 N.C.S. Revised May 5, 1997, Effective June 5, 1997 Revised August, 1998, Effective Sept. 3, 1998 Revised February 4, 2002 SCHOOL FACILITIES FEES PURPOSE The purpose of the "School Facilities Fee/Dedication Ordinance" is to provide a method for providing sites and /or financing interim school facilities necessitated by new residential developments causing conditions of overcrowding. APPLICABILITY A school facilities fee must be paid for every residential dwelling unit or addition or non- residential development built within the City. CALCULATION OF FEE The following is a list of districts collecting school facilities fees: District Cinnabar Old Adobe Petaluma Waugh Petaluma Joint Union High School Time of Payment Contact Phone Joyce Bell 765 -4345 Jan Patrick 765 -4321 Donna Brians 778 -4621 Chris Fall 762 -4905 Donna Brians 778 -4621 School facilities fee is paid prior to issuance of a building permit. All fees are paid directly to the Elementary School District Office of the District in which the project is located. A signed Certificate of Compliance is required from each applicable district. A Certificate of Compliance form is available at the City Building Department. Municipal Code 17.28 Ordinance #1377, 1512 Resolutions #84 -165, 85 -183, 85- 184 -87 -7, 87 -25 Revised October 2, 1991 IN -LIEU CONTRIBUTIONS FOR PROVISION OF VERY LOW, LOW AND MODERATE INCOME HOUSING PURPOSE An in -lieu contribution to the Housing Fund is an option for developers to comply with Program 11 (iii) of the 1990 -2000 Housing Element of the Petaluma General Plan which states: "Developers of planned residential developments of five or more units shall provide 10 -15% of their units as affordable in one of the following ways:.. . (iii) An in -lieu contribution, related to the cost of providing affordable housing, shall be offered to the City." The City will use the funds collected in a comprehensive program to assist in the provision of low and very low income housing opportunities in Petaluma. APPLICABILITY This policy applies to residential developments with five units or more. CALCULATION OF CONTRIBUTIONS Contributions are calculated based upon a schedule adopted by the City Council (Resolution 84 -199), based upon the actual sales price of lot and home, or in the case of custom home lots, the estimated value of lot and home. OPTIONS FOR COMPLIANCE An in -lieu contribution is one of several options available for meeting the requirements for affordable housing. Other options include but are not limited to provision of 10 -15% of the units for rental or sale at prices affordable to very low, low and moderate income households, or dedication of land to the City to be used as a site for affordable housing. TIME OF PAYMENT In -lieu contributions are collected on behalf of the City of Petaluma at the time the escrow is closed on the sale of each lot or residential unit. A recorded agreement establishes terms of payment. Revised June 21, 1995 10 IN -LIEU HOUSING CONTRIBUTION CHART Sales Price Lot and House Contribution Under $75,000 0 $ 75,000 - $ 79,999 $ 150 per unit $ 80,000 - $ 84,999 $ 240 per unit $ 85,000 - $ 89,999 $ 425 per unit $ 90,000 - $ 94,999 $ 900 per unit $ 95,000 - $ 99,999 $1,425 per unit $100,000 - $104,999 $2,000 per unit $105,000 - $109,999 $2,100 per unit $110,000 - $114,999 $2,200 per unit $115,000 - $119,999 $2,300 per unit $120,000 - over $2,400 per unit 11 TRAFFIC MITIGATION FEE PURPOSE: The purpose of the Traffic Mitigation Fee is to provide funds for the construction and implementation of improvements to key elements of the City -wide transportation system sufficient to accommodate the traffic volumes generated by new development. APPLICABILITY: All development within the City for which building permits or other entitlements for development are issued. Please see Municipal Code Chapter 11.80 (Ordinance 1837 N.C.S.) for further details. CALCULATION OF FEE: The amount of fee is based on the following schedule: TYPE OF LAND USE LAND USE Residential: Single- family or Duplex Multi - family (3+ units) Manufactured Horne Senior Housing Accessory Dwelling Non - Residential: Commercial: Motel or Hotel Other retail uses Offices: All office uses Industrial: All Industrial Users (1) Mini - storage (1) Includes Manufacturing and Warehouse type uses. TRAFFIC FEE FOR $3,007 per unit $1,885 per unit $1,672 per unit $1,197 per unit $1,885 per unit $ 858 per room $2,485 per 1,000 square feet $2,619 per 1,000 square feet $ 996 per 1,000 square feet $ 39 per 1,000 square feet OPTIONS FOR COMPLIANCE: This ordinance also provides for crediting projects that construct traffic improvements which would otherwise need to be developed with this fee. TIME OF PAYMENT: The traffic impact fee is calculated at time of building permit issuance. Fees for Non - Residential building permits are paid at building permit issuance. Fees for Residential building permits are paid before a final inspection is scheduled. Municipal Code 11.80 Ordinance #1837 N.C.S. February 4, 2002 12 SAdevelopment fees book] et\FEES.DOC