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HomeMy WebLinkAboutStaff Report 5.B 10/03/2016Agenda Item #5.6 l _k DATE: October 3, 2016 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Scott Duiven, Senior Planner SUBJECT: Resolution Repealing and Replacing the Current Park Land Development Impact Fee Resolution for Future Development within the City of Petaluma, Resolution No. 2014 -037 N.C.S., Adopted March 3, 2014, to add Funding for Lafferty Ranch Improvements RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Repealing and Replacing the Current Park Land Development Impact Fee Resolution for Future Development within the City of Petaluma, Resolution No. 2014 -037 N.C.S., Adopted March 3, 2014, to Add Funding for Lafferty Ranch Improvements. BACKGROUND The City of Petaluma adopted a development impact fee program in 2008 to implement the goals, policies, and programs of the General Plan 2025. In 2012 the City Council adopted an updated development impact fee program to meet the City Council's goal of reducing development fees while preserving funding for planned infrastructure necessary for implementation of the General Plan 2025 and entitlement of projects relying on the General Plan EIR and related improvement plans for mitigation of cumulative impacts. In March of 2014, the City Council adopted updated fee legislation largely to amend administrative changes addressing definitions, amount of the fee, fee adjustments, and time of fee payments. The City now intends to construct certain improvements consistent with the General Plan 2025 on Lafferty Ranch, a 269 acre City -owned property, located east of Petaluma on Sonoma Mountain. Phased improvements will include the construction of trails and related improvements such as a small parking area and restroom facility to allow for public access. Lafferty Ranch and its use is addressed in the discussion of regional parks at page 6 -8 in General Plan 2025, where it is noted that the City -owned Lafferty Ranch property would provide access to hiking trails on Sonoma Mountain for the greater Sonoma County area, should development of minimal facilities be achieved to allow public access. Lafferty Ranch is also addressed under Goal 6 -G -1 of General Plan 2025 in Goal 6- P -15A, which notes that the City should continue to maintain Lafferty Ranch as City open space for possible future passive public use. In addition, Chapter 13.45 of the Petaluma Municipal Code addresses Lafferty Ranch. Section 13.45.030 of the Petaluma Municipal Code provides that Lafferty Ranch shall be made available for passive recreational use by the public in accordance with that section. DISCUSSION The City contracted with Municipal Resource Group, LLC (MRG) to perform a nexus analysis to determine the ability to add the costs of improvements for access to Lafferty Ranch to the park land development impact fee program and the appropriate percentage of those costs applicable to future development. Municipal Resource Group reviewed the extent to which the costs associated with improvements to Lafferty Ranch including: planning, design and construction of trails, parking, storm water pollution protection, restroom facilities, pedestrian bridges, signage, fencing, gates and bollards could be financed in part by the Park Land Development Impact Fee. MRG determined that there is a nexus for including Lafferty Ranch improvements in the fee and that, similar to other park improvements currently in the fee, 21.1% of the costs can be attributed to future development. The estimated cost for Lafferty Ranch improvements is based on the Lafferto) Ranch Conceptual Plan for Public Access — Engineer's Estimate included as Appendix A to the Nexus Report. The cost of the Lafferty Ranch improvements, including allowable administration costs would be $4,021,424, of which $848,520 could be attributed to the Park Land Development Impact Fee. This would increase the cost per dwelling unit equivalent by $140 or 2.5 %. The Amount of Fee in Exhibit A of the attached resolution has been updated as shown in the table below. PARK LAND DEVELOPMENT IMPACT FEE Land Use Type Current Fee Amount Proposed Fee Amount Unit of Measurement Single Family Residential $5,647 $5,787 Unit Multiple Family Residential $3,803 $3,897 Unit Accessory Dwelling $1,937 $1,985 Unit Commercial $1,070 $1,096 1,000 square feet of building space Office $1,024 $1,049 1,000 square feet of building space Industrial $651 $667 1,000 square feet of building space FINANCIAL IMPACTS Financial impacts beyond the staff time required to prepare this report, consultant fees in an amount not to exceed $9,300, and providing public notice include additional revenue to the Park Land Development Impact Fee program of approximately $848,520 to help with funding Lafferty Ranch public access improvements. W ATTACHMENTS 1. Resolution Replacing the Park Land Development Impact Fee 2. Mitigation Fee Act Nexus Report (Municipal Resource Group, July 2016) ® Items listed below are large in volume and are not attached to this report, but may be viewed in the City Clerk's office. 1. Mitigation Fee Act Nexus Report & Quimby Act In -Lieu Fee Report (Municipal Resource Group, August 2012) ATTACHMENT 1 RESOLUTION REPEALING AND REPLACING THE CURRENT PARK LAND DEVELOPMENT IMPACT FEE RESOLUTION FOR FUTURE DEVELOPMENT WITHIN THE CITY OF PETALUMA, RESOLUTION NO. 2014 -037 N.C.S., ADOPTED MARCH 3, 2014, TO ADD FUNDING FOR LAFFERTY RANCH IMPROVEMENTS 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 Park Land Development Impact Fee for New Development by Resolution No. 2014 -037 N.C.S., adopted March 3, 2014; and, WHEREAS, the General Plan designates a defined land use for all property within the City and, based on those uses, calculates the expected number of residents, residential units, employees, and square footage of nonresidential development that will result if all property in the City is developed as planned by the year 2025. The General Plan incorporates policies and programs to mitigate the impacts of such new development, including policies that require new development to pay for its proportional fair share of the costs of acquiring and improving public facilities, including community, neighborhood, and regional park improvements, necessary to meet the demands of residents, employees, customers, and businesses; and, WHEREAS, the General Plan and its EIR analyze the impacts of development under the General Plan and proposed mitigation measures, including the creation of fee programs to require new development to pay for its proportional fair share of the cost of 4 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 granted" and program B: "Initiate design of long term infrastructure improvements in a timely manner to ensure their completeness to coincide with demand "; and, WHEREAS, Goal 6 -G -1 of Chapter 6 of the General Plan provides that the City should "Retain and expand city -wide park and recreation assets and programs to maintain the quality of life they provide to the community "; and, WHEREAS, Policy 6 -P -1 of Goal 6 -G -1 of Chapter 6 of the General Plan provides that the City should "Develop additional park land and recreational facilities in the City, particularly in areas lacking these facilities and where new growth is proposed, to meet the standards of required park acreage "; and, WHEREAS, Policy 6 -P -3 of Goal 6 -G -1 of Chapter 6 of the General Plan provides that the City should "Connect city park with other public facilities, open spaces, employment centers, and residential neighborhoods by locating new recreation facilities in proximity to these uses and by fully integrating the parks system with the city's pedestrian, bicycle, and transit systems "; and, WHEREAS, Policy 6 -P -5 of Goal 6 -G -1 of Chapter 6 of the General Plan provides that "New park land or recreation facilities, beyond those identified in the General Plan, may be required as part of any development review and entitlement process "; and, WHEREAS, Policy 6 -P -6 of Goal 6 -G -1 of Chapter 6 of the General Plan provides that the City should "Achieve and maintain a park standard of 5 acres per 1,000 residents (community park land at 3 acres per 1,000 population and neighborhood park land at 2 acres per 1,000 population) and an open space /urban separator standard of 10 acres per 1,000 population, in order to enhance the physical environment of the city and to meet the recreation needs of the community "; and, WHEREAS, Program (A) of Policy 6 -P -7 of Goal 6 -G -1 of Chapter 6 of the General Plan provides that the City should "Review and, if necessary, revise the City's Municipal Code regarding the payment of community park impact fees to maximize all 5 opportunities for funding community and neighborhood park land, park improvements, and park operation and maintenance through the development entitlement process "; and, WHEREAS, Goal 6 -G -2 of Chapter 6 of the General Plan requires that the City should "Ensure park and recreational assets are maintained to allow safe access and use "; and, WHEREAS, Policy 6 -P -17 of Goal 6 -G -2 of Chapter 6 of the General Plan provides that "Recognizing that the maintenance of City assets is a hatter of civic pride, priority and safety, the City shall work with citizens, businesses, schools, organizations, and public agencies to fund an acceptable level of maintenance for all city -owned park and recreational facilities "; and, WHEREAS, Lafferty Ranch and its use is addressed in the discussion of regional parks at page 6 -8 in General Plan 2025, where it is noted that the City -owned Lafferty Ranch property would provide access to hiking trails on Sonoma Mountain for the greater Sonoma County area, should development of minimal facilities be achieved to allow public access; and WHEREAS, Lafferty Ranch is also addressed under Goal 6 -G -1 of General Plan 2025 in Goal 6- P -15A, which notes that the City should continue to maintain Lafferty Ranch as City open space for possible future passive public use; and WHEREAS, in addition, Chapter 13.45 of the Petaluma Municipal Code addresses Lafferty Ranch in Section 13.45.030, which provides that Lafferty Ranch shall be made available for passive recreational use by the public in accordance with that section; and WHEREAS, Chapter 20.34 of the Petaluma Municipal Code, adopted pursuant to California Government Code Section 66477 (the "Quimby Act "), requires the dedication of park land as a part of residential development subject to the Quimby Act, or the payment of a fee in lieu of dedicating property; and WHEREAS, the Quimby Act applies only to fees and/or dedications imposed on certain subdivisions subject to the Subdivision Map Act (California Government Code Section 64410 et seq.) to fund land acquisition costs for park or recreational purposes, and the Quimby Act does not apply to imposition of fees for park land improvements imposed on residential and non - residential development; and, WHEREAS, the City retained Municipal Resource Group, LLC to determine, based in part on the land use designations provided by the General Plan, the additional park improvements for community and neighborhood park lands that would be necessary to maintain the level of those services provided to the community and to fund new development's share of the costs of maintaining the developed park acreage and improvements available to Petaluma; and, I WHEREAS, Municipal Resource Group, LLC prepared the "City of Petaluma Mitigation Fee Act Nexus Report & Quimby Act In -Lieu Fee Report ", dated August 14, 2012 ( "2012 Report "), a copy of which is on file in the Office of the City Clerk and hereby made a part of this Resolution by reference; and WHEREAS, the 2012 Report, in Chapter IV and Appendix Q, outlines the cost of park improvements for community and neighborhood park lands necessary to maintain the current levels of developed park lands provided to the community and thereby meet the demands of new residents for those services through build out under the General Plan, and the 2012 Report estimates the cost in current dollars of the improvements, and calculates the fees necessary to raise the revenue necessary to pay for the improvement costs attributable to new development; and, WHEREAS, the 2012 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 related to park improvements for community and neighborhood parks and analyze the need for such new park improvements for community and neighborhood parks required by future development within the City of Petaluma, described above and in Chapter IV and Appendix Q of the 2012 Report; and, WHEREAS, the 2012 Report estimates the cost in current dollars of the future needed park facilities identified in that report, assigns the portion of those costs attributable to new development, and calculates the fees necessary to raise the revenue necessary to pay for the portion of the costs of the facilities identified in the 2012 Report attributable to new development; and, WHEREAS, Municipal Resource Group, LLC prepared the "City of Petaluma Mitigation Fee Act Nexus Report Park Land Development Impact Fee — Lafferty Ranch ", dated July 2016 ( "2016 Report"), a copy of which is on file in the Office of the City Clerk and hereby made a part of this Resolution by reference.; and WHEREAS, the 2016 Report ' estimates the cost in current dollars of planned Lafferty improvements ( "Lafferty Improvements "), and calculates the fees necessary to raise the revenue necessary to pay for the Lafferty Improvement costs attributable to new development; and, WHEREAS, the 2016 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 related to park improvements for community, neighborhood, and regional parks and analyze the need for such new park improvements for community, neighborhood, and regional parks required by future development within the City of Petaluma, described above and in Chapter III and Appendix A of the 2016 Report; and, WHEREAS, the 2016 Report estimates the cost in current dollars of the Lafferty Improvements, assigns the portion of those costs attributable to new development, and 7 calculates the fees necessary to raise the revenue necessary to pay for the portion of the costs of the Lafferty Improvements attributable to new development; and, WHEREAS, The Park Land Development Impact Fee is not a "tax" as defined in Section 1, paragraph (e) of Article XIIIC of the California Constitution ( "Proposition 26 ") because such fee is imposed for a specific benefit conferred or privilege granted directly to the payor that is not,provided to those not charged, and which does not exceed the reasonable cost to the City of providing the service or product; and /or the fee is imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the City of providing the service or product; and /or the fee is imposed for the reasonable regulatory costs to the City of issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof; and /or the fee is imposed as a condition of property development; and, WHEREAS, the Park Land Development Impact Fee is not subject to the requirements of Article XIIID of the California Constitution ( "Proposition 218 ") concerning property related assessments and fees pursuant to Apartment Association of Los Angeles County v. City of Los Angeles (2001) 24 CalAth 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 taxes as defined in Article 3.5 of the Government Code; and, WHEREAS, in accordance with Government Code Section 66016, at least fourteen (14) days prior to the public meeting at which this Resolution was adopted, notice of the time and place of the meeting was mailed to eligible interested parties who filed written requests with the City for mailed notice of meetings on new or increased fees or service charges; and, WHEREAS, in accordance with Government Code Section 66016, the Report was available for public inspection, review, and comment for ten (10) days prior to the public meeting at which the City Council considered the adoption of this Resolution; and, WHEREAS, ten (10) days advance notice of the public meeting at which the City Council considered adoption of this Resolution was given by publication in accordance with Government Code Section 6062a; and, WHEREAS, on September 10, 2012, the City Council adopted Ordinance No. 2444 N.C.S., which adds new Title 19, entitled "Development Fees," to the Petaluma Municipal Code ( "Code ") and amends, repeals and /or recodifies various provisions authorizing the City's development - related fees, including the City Facilities 0 Development Impact Fee, Park Land Development Impact Fee, Open Space Land Acquisition Fee, Park Land Acquisition Fee (Non- Quimby Act), Park Land Acquisition Fee (Quimby Act), Traffic Development Impact Fee, Water and Wastewater Capacity Fees and the Commercial Development Housing Linkage Fee; and, FINDINGS WHEREAS, the City Council finds as follows: A. After considering Chapter IV and Appendix Q of the 2012 Report and Chapter III and Appendix A of the 2016 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 "), by adoption of this resolution the City Council hereby approves the 2012 Report as previously adopted by Resolution No. 2012 -122 N.C.S. and approves and adopts the 2016 Report; and the City Council further finds that the future development in the City of Petaluma will generate the need for the park facilities identified in the 2012 Report and 2016 Report, and the park facilities identified in the 2012 Report and the 2016 Report are consistent with the City's General Plan. B. The City currently provides improved community and neighborhood park facilities to the community and the fee set forth in this resolution will be used to maintain current service levels. As such, the City Park Land Development Impact Fee as it relates to development within the City is not a "project" within the meaning of CEQA (Pub. Res. Code §21080(b)(8)(D)). C. In adopting this Resolution, the City Council is exercising its powers under Article XI, § §5 and 7 of the California Constitution, Chapter 5 of Division 1 of the Government Code ( "Mitigation Fee Act "), commencing with Section 66000, Section 54 of the City of Petaluma Charter, and Chapters 13.45 and 19.16 of the Petaluma Municipal Code, collectively and separately. D. The Record establishes: 1. In accordance with Section 66000, subdivision a, paragraph 1 of the Mitigation Fee Act, the purpose of the Park Land Development Impact Fee ( "Fee "), set forth in this resolution, as specified in Chapter IV of the 2012 Report and Chapter III of the 2016 Report, is to provide funding to achieve the City's goal of maintaining existing service levels and to provide adequate community, neighborhood, and regional park facilities to meet the broad range of needs of Petaluma residents and employees as established in the 9 General Plan. Existing standards for community, neighborhood, and regional parks have been identified which have been used as the basis to maintain these standards for future development and to mitigate the impacts caused by future development in the City. 2. In accordance with Section 66000, subdivision a, paragraph 2 of the Mitigation Fee Act, the Fee collected pursuant to this resolution shall be used to construct the needed park facilities as described in the 2012 Report and 2016 Report and the General Plan and the City's budget for capital improvements ( "the Facilities "). The Facilities, which are specifically described in Chapter IV and Appendix Q of the 2012 Report and in Chapter III and Appendix A of the 2016 Report, include the following: • Construction of 43.63 acres of community parks • Construction of 29.01 acres of neighborhood parks • Construction of Lafferty Ranch Public Access Improvements 3. In accordance with section 66000, subdivision a, paragraph 3 of the Mitigation Fee Act, there is a reasonable relationship between the Fee's use (to pay for the construction of the Facilities) and the type of development for which the Fee is charged in that the fee will be applied all development in the City — including residential, commercial, office, and industrial development projects, which will generate new demands for park facilities. The community park improvements, neighborhood park improvements, and regional park improvements constructed with the proceeds of the Fee will address and mitigate the additional impacts and demands created by residential and non - residential development projects. 4. In accordance with Section 66000, subdivision a, paragraph 4, there is a reasonable relationship between the need for the Facilities and the types of development projects on which the Fee is imposed in that the Fee will be applied to new development in the City of Petaluma — both residential and non - residential. These development projects will generate new residents and employees who live, work, and /or shop in Petaluma and who generate or contribute to the demand for park improvements, because the new residents and employees will use community, neighborhood, and regional parks developed with the improvements and the same standard of improvements will be provided to new residents and employees as to existing residents and employees. 5. In accordance with Section 66000, subdivision b of the Mitigation Fee Act, there is a reasonable relationship between the amount of the Fee and the cost of the Facilities, or the portion thereof EEO attributable to the development in the City on which the Fee is imposed in that the Fee has been calculated by apportioning the cost of constructing new community, neighborhood, and regional parks to each type of new residential unit, and to the "resident equivalent" of each employee generated by commercial, office and industrial development projects. The full cost of the Facilities has been allocated to the Fee because the entire cost will be incurred to provide the same standard of park improvements to future residents and employees as is provided to existing residents and employees. 6. The cost estimates set forth in the 2012 Report and 2016 Report are reasonable estimates for constructing or acquiring the Facilities, and the Fees expected to be generated by future development will not exceed the projected cost of constructing and/or acquiring the Facilities. 7. The method of allocation of the Fee to a particular development bears a fair relationship and is roughly proportional to each development's burden on and benefits from the Facilities to be funded by the Fee, in that the Fee is calculated based on the number of residents or employees each particular development will generate. 8. The 2012 and 2016 Reports are detailed analyses of how public services will be affected by development in the City and the public facilities required to accommodate that development. 9. The Fee is consistent with the General Plan and, pursuant to Government Code Section 65913.2; the City Council has considered the effects of the Fee with respect to the City's housing needs as established in the housing element of the General Plan. 10. The Fee amounts set forth in Exhibit A include the reasonable costs of administration and compliance of the Fee program with the requirements of the Mitigation Fee Act and other applicable law. ADOPTION OF FEE NOW, THEREFORE, BE IT RESOLVED, 1. Definitions. a. "Accessory Dwelling" shall mean a second unit which meets the standards set forth in Section 7.030 of Chapter 7, "Standards for Specific Land Uses" of the City of Petaluma Implementing Zoning Ordinance ( "IZO "), as modified by any subsequent amendment or successor zoning ordinance and /or development code provision adopted by the City which defines Accessory Dwelling, second unit or second dwelling unit." b. "Commercial" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, No. 2300 N.C.S., or any successor ordinance, for facilities for the purchase and sale of commodities and services and the sales, servicing, installation, and repair of such commodities and services and other uses incidental to these activities. Commercial land uses include but are not limited to: apparel and clothing stores; auto dealers and malls; auto accessories stores; banks and savings and loans; beauty salons; book stores; discount stores and centers; dry cleaners; drug stores; eating and drinking establishments; furniture stores and outlets; general merchandise stores; hardware stores; home furnishings and improvement centers; laundromats; liquor stores; service stations; shopping centers; supermarkets; bicycle shops; cameras and photographic supply stores; convenience stores; department stores; drug stores and pharmacies; jewelry stores; luggage and leather goods stores; sporting goods and equipment stores; stationery stores; collectible stores; second hand goods stores; religious goods stores; hobby materials stores; small wares stores; plant sales; bowling alleys; coin - operated amusement arcades; dance halls, clubs and ballrooms; electronic game arcades; ice skating and roller skating establishments; pool and billiard rooms; amusement and theme parks; go -cart tracks; golf driving ranges; miniature golf courses; water slides; banks and trust companies; credit agencies; holding companies; lending and thrift institutions; securities /commodity contract brokers and dealers; fueling stations and gas stations; security and commodity exchanges; vehicle finance leasing agencies; restaurants, cafes and coffee shops; and movie theatres and civic theatres. C. "Developed" and "Development" shall mean the construction or alteration of or addition to, other than by the City, of any building or structure within the City of Petaluma. d. "Facilities" shall include those municipal public facilities as are described in the 2012 Report and 2016 Report related to providing general improvements to regional, community and neighborhood park lands. "Facilities" shall also include comparable alternative facilities should later changes in projections of development in the region necessitate construction of such alternative facilities; 12 provided that the City Council later determines (1) that there is a reasonable relationship between development within the City of Petaluma and the need for the alternative facilities; (2) that the alternative facilities are comparable to the facilities in the 2012 and /or 2016 Report; and (3) that the revenue from the Fee will be used only to pay new development's fair and proportionate share of the alternative facilities. e. "Industrial" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation as established in the Implementing Zoning Code, Ordinance No. 2300 N.C.S., or any successor ordinance, for the manufacture, production, assembly, and processing of consumer goods, uses incidental to those activities, and research, development and warehousing. Industrial land uses include, but are not limited to: assembly; contractor's storage yards; fabrication; lumber yards; manufacturing; outdoor stockyards and service yards; printing; processing; warehouses and distribution centers; wholesale and heavy commercial enterprises; clothing, fabric and other product manufacturing; electronics, equipment, and appliance manufacturing; metal products fabrication, machine and welding shops; paper product manufacturing; food and beverage product manufacturing; small -scale manufacturing; lumber and wood product manufacturing; machinery manufacturing; motor vehicle and transportation equipment manufacturing; stone and cut stone product manufacturing; structured clay and pottery product manufacturing; processing of building materials, chemicals, fabricated metals, paper products, machinery, textiles, and /or equipment; and collection, sorting and processing enterprises. f. "Mixed Development" shall mean a development that includes more than one of the types of development defined in this Section 1. Mixed developments may combine residential types of development (Single Family and Multifamily), non - residential types of development (Commercial, Industrial, and Office), or a combination of residential and non - residential types of development. g. "Multifamily Residential" shall mean any residential Development that does not qualify as detached single family dwelling unit Development as defined in the 2012 Report and the 2016 Report, as adopted by the City. h. "Office" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, 13 Ordinance No. 2300 N.C.S., or any successor ordinance, for general business offices, medical and professional offices, administrative or headquarters offices for large wholesaling or manufacturing operations, and other uses incidental to these activities. Office land uses include but are not limited to: administrative headquarters; business parks; finance offices; insurance offices; legal offices; medical and health services offices; office buildings; professional and administrative offices; professional associations; real estate offices; and travel agencies. i. "Single Family Residential" shall mean detached, single - family dwelling unit development as defined in the 2012 Report and 2016 Report, as adopted by the City. 2. Park Land Development Impact Fee Imposed. Pursuant to the Mitigation Fee Act and Chapter 19.16 of the City of Petaluma Municipal Code, a Park Land Development Impact Fee shall be imposed and paid at the times and in the amounts and otherwise apply and be administered as prescribed in this Resolution on each type of development set forth in Exhibit A, which is attached to and made a part of this Resolution, including each portion of such Development within Mixed Development. 3. Time for Imposing Fee. In accordance with Government Code Section 65961, the Fee for residential subdivision development for which tentative or parcel maps are required pursuant to the Subdivision Map Act (Government Code Section 66410 et seq.) shall be imposed at the time of approval of the conditions that apply to the tentative or parcel map for such residential subdivision development, as applicable. Payment of the Fee shall be deemed to be a condition of all such tentative or parcel maps. Notwithstanding this Section 3, the time for payment of the Fee for all development, including Single Family Residential and Multiple Family Residential subdivisions, shall be as specified in Section 4, below. 4. Time for Fee Pam. a. In accordance with Government Code Section 66007, the Fee shall be charged and paid for each residential development upon the date of final inspection or issuance of the certificate of occupancy for such residential development, whichever is earlier. However, if the Fee is to reimburse the City for expenditures previously made, or if the City determines that the Fee will be collected for Facilities for which an account has been established and funds appropriated and 14 for which the City has adopted a proposed construction schedule prior to issuance of the building permit for such residential development, then the Fee shall be charged and paid upon issuance of the building permit for such residential development. However, with respect to a residential development proposed by a nonprofit housing developer in which at least forty -nine percent (49 %) of the total units are reserved for occupancy by lower income households, as defined in Health and Safety Code Section 50079.5, at an affordable rent, as defined in Health and Safety Code Section 50053, the payment procedures described in Government Code Section 66007(b)(2)(A) -(B) shall apply. b. The Fee shall be charged and paid for each non - residential Development upon issuance of the building permit for such non- residential Development. C. The Fee shall be charged and paid for each Mixed Development upon the times specified in this Section 4 that apply to such Mixed Development. For example, if a Mixed Development includes residential Development and non - residential Development, and the Fee is to reimburse the City for expenditures previously made, or the City has made the required determination to permit requiring payment of the Fee upon issuance of the building permit, and the procedures in Government Code section 66007(b)(2)(A) -(B) do not apply, the Fee as applicable to the entire mixed development shall be paid upon issuance of the building permit for the Mixed Development. If a Mixed Development includes residential and non - residential development, and the Fee is not to reimburse the City for expenditures previously made or the City has not made the required determination to permit requiring payment of the Fee upon issuance of the building permit, the Fee as to the residential portion of the mixed development shall be paid upon the earlier of the date of final inspection or issuance of the certificate of occupancy for such residential portion, and the Fee as to the non- residential portion of the Mixed Development shall be paid upon issuance of the building permit for such non - residential portion. 5. Amount of Fee. a. The amount of the Fee for residential and non - residential development shall be as set forth in Exhibit A attached hereto and incorporated herein. b. The amount of the Fee for Mixed Development shall be the sum of the following, as applicable: 15 1. The applicable amount per unit pursuant to Section 5(a), above, for each residential development within a Mixed Development. 2. The applicable amount per 1,000 square feet of Development pursuant to Section 5(a), above, for each nonresidential Development or portion of such Development within a Mixed Development. C. Any non - residential development on property on which a building or structure was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution that is applicable to the new development or use, less the fee applicable to the prior development or use, so long as such prior use was in existence at the time of adoption of General Plan 2025. d. Any development on any parcel any portion of which is located within one half -mile of any portion of a parcel identified as a possible future location for a SMART Rail Station on which parcel proposed for development a building or structure was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution that is applicable to the new development or use, less the fee applicable to the prior development or use, so long as such prior use was in existence at the time of adoption of General Plan 2025. 6. Designation of Developments. Nonresidential developments, other than Mixed Developments (but including non - residential developments within Mixed Developments) that are not within the definition of a use defined in this resolution shall be assigned to one of the defined use categories by the City Manager for purposes of imposition and charging of the Fee. The City Manager shall assign such categories as consistently as possible with the definitions of such categories established pursuant to this resolution or as later amended . by the City Council. The City Manager may also designate Development as Multifamily or Single - Family based on the actual number of dwelling units per structure within the development. 7. Inapplicability of Fee. The Fee shall not apply to: a. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a single family residential 16 unit or another unit is added to an existing multi- family residential unit. b. Any replacement or reconstruction of an existing residential structure that has been destroyed or demolished, if the building permit for reconstruction is obtained within one year after the building was destroyed or demolished. This subsection shall not apply if the replacement or reconstruction increases the square footage of the structure by 50 percent (50 %) or more. C. Any replacement or reconstruction of an existing non - residential structure that has been destroyed or demolished, if the building permit for reconstruction is obtained within one year after the building was destroyed or demolished, there is no change in the land use designation of the property, and the square footage of the replacement building does not exceed the square footage of the building that was destroyed or demolished. d. Any addition to an existing non - residential structure of 500 square feet or less. e. Any public or quasi - public development on lands designated Public /Semi - Public or Education on the General Plan Land Use Map, as of the effective date of the Fee, so long as such development is intended to serve development in the City and does not itself generate a need for additional public infrastructure needed to serve new development, as in the way new residential development generates new residents requiring City services, and new non - residential development generates new employees in the City using City services. f. Low and /or moderate income senior citizens housing projects owned and developed by a charitable, nonprofit organization recognized as such by the United States Internal Revenue Service and the State of California Franchise Tax Board. g. The City Council, in its discretion, may determine that the Fee is inapplicable to certain development constructed or to be constructed by a public entity on land having an appropriate General Plan land use designation provide that the City Council finds that such inapplicability is in the interest of the public health, safety and /or welfare, for reasons specified in the findings. Such reasons may include, but are not limited to, that the Fee as it would apply to such development by a public entity will be sufficiently recovered in whole or in part from residential development, the 17 residents of which may constitute the primary users of the public entity development. 8. Use of Fee Revenue. The revenues raised by payment of the Fee shall be placed in a separate, interest bearing account to permit accounting for such revenues and the interest that they generate. Such revenues and interest shall be used only for the Facilities and the purposes for which the Fee was collected, which are the following: a. To pay for design, engineering, right -of -way or land acquisition and construction and /or acquisition of the Facilities and reasonable costs of outside consultant studies related thereto; b. To reimburse the City for the Facilities constructed by the City with funds from other sources including funds from other public entities, unless the City funds were obtained from grants or gifts intended by the grantor to be used for the Facilities. C. To reimburse developers who have designed and constructed any of the Facilities with prior City approval and have entered into an agreement, as provided in Section 9, below; and d. To pay for and /or reimburse costs of program development and ongoing administration and maintenance of the Fee program, including, but not limited to, the cost of studies, legal costs, and other costs of updating the Fee. 9. Credits and Reimbursement for Developer Constructed Facilities. The City and a developer may enter into an improvement agreement to allow the developer to construct certain of the Facilities. Entering such an agreement'is in the City's sole discretion. Such agreement shall provide for security for the developer's commitment to construct the Facilities and shall refer to this resolution for credit and reimbursement. If the City enters into such an agreement with a developer prior to construction of one or more of the Facilities, the City shall provide the developer a credit in accordance with the following: a. Credit Amount. The credit shall be in the amount of the lowest bid received for construction of the facility, as approved by the City Engineer. However, in no event shall a credit pursuant to this provision exceed the current facility cost. For the purposes of this section, 18 such current facility cost shall be the amount listed in the Report for the particular facility, as subsequently adjusted pursuant to Sections 13 and 14 of this Resolution prior to issuance of the building permit for that facility. Once issued, credit pursuant to this section shall not be adjusted for inflation or any other factor. Credit provided pursuant to this section is not transferable. b. Application of Credit. Developers may apply credit given pursuant to this section against the Fee applicable to a particular project until the credit is exhausted or an excess credit results. The total credit shall be divided by the number of units or square footage of building space (or combination thereof for a Mixed Use Development) to determine the amount of credit which can be applied against the Fee for each unit of measurement and, if the credit per unit of measure is less than the Fee per unit of measurement, the developer shall pay the difference for each residential unit or square footage of building space. C. Reimbursement for Excess Credit. Reimbursement for excess credit shall only be from remaining unspent Fee revenues. Once all the Facilities have been constructed or acquired, and to the extent Fee revenues are sufficient to cover all claims for reimbursement of Fee revenues, including reimbursement for excess , credit, developers with excess credit shall be entitled to reimbursement, subject to such developers certifying in writing to the City that the cost of constructing the facility that resulted in an excess credit was not passed on to homeowners, and indemnifying the City from land -owner claims for reimbursement under the Mitigation Fee Act, and Section 66001 in particular. If remaining Fee revenues after all of the Facilities have been constructed or acquired are insufficient to cover all claims for reimbursement of Fee revenues, such claims, including claims for reimbursement of excess credit, shall be reimbursed on a pro rata basis in accordance with applicable law. 10. Standards. The standards upon which the need for the Facilities is based are the standards of the City, including the standards contained in the General Plan and its EIR and those City standards reflected in the Report. 11. Periodic Review. 19 a. During each fiscal year, the City Manager shall prepare a report for the City Council, pursuant to Government Code Section 66006, identifying the balance of Fee revenues in the Fee account. b. Pursuant to Government Code Section 66002, the City Council shall also review, as part of any adopted City Capital Improvement Plan each year, the approximate location, size, time of availability and estimates of cost for all Facilities to be financed with the Fee. The estimated costs shall be adjusted in accordance with appropriate indices of inflation. The City Council shall make findings identifying the purpose to which the existing Fee revenue balances are to be put and demonstrating a reasonable relationship between the Fee and the purpose for which it is charged. 12. Subsequent Analysis and Revision of the Fee. The Fee set forth herein is adopted and implemented by the City Council in reliance on the Record identified above. The City may continue to conduct further study and analysis to determine whether the Fee should be revised. When additional information is available, the City Council may review the Fee to determine that the Fee amounts remain reasonably related to the impacts of development within the City of Petaluma and areas included in the City's General Plan. The City Council may revise the Fee to incorporate findings and conclusions of further studies and any standards in General Plan and /or the General Plan EIR, as well as increases due to inflation and increased construction costs. 13. Fee Adjustments. a. Annual CPI Adjustments. The Fee established will escalate or decrease annually by the same percentage the latest "Engineering News Record Construction Cost Index -20 City Average" ( "Index ") annually escalates or decreases. The adjustment shall be based on a comparison of the most recent Index to the Index in the month of adoption of the Fee, or the Index used for the prior adjustment of the Fee. The Finance Director shall compute the increase or decrease in such Fee. Such Fee adjustments will take effect each July 1 st. b. Refund Applications Based on 2008 Development Fees Paid. Current owners of development that paid development fees pursuant to Resolution No. 2008 -093 N.C.S. may apply for a refund of the difference, if any, between the total development fees that owner paid pursuant to said resolution ( "prior fee "), and the resolution(s) that superseded the resolution listed in this provision ( "current fee "), if the total amount of prior fees paid exceeds the total amount of current fees applicable to that development, subject to the following: 1. To be eligible for a refund, current development owners must certify in writing to the City that the owner has not recovered or is not recovering from third parties such as tenants or others the amount of the prior fees paid or the amount by which the prior fees exceeds the current fees. 2. Any refunds pursuant to this provision shall only be paid from existing, un- obligated, unspent Fee revenue balances. The City will have no obligation to pay refunds to any owner absent sufficient existing, un- obligated, unspent Fee revenue balance available for that purpose. 3. If existing, un- obligated, unspent Fee revenue balances are insufficient to cover eligible applications for refund, such eligible applications shall be paid refunds on a pro rata basis in accordance with applicable law. 14. Administrative Guidelines. The Council may, by resolution, adopt administrative guidelines to provide procedures for calculation, credit, reimbursement, payment and other administrative aspects of the Fee. Such guidelines may include procedures for construction of designated Facilities by developers. 15. Effective Date. This resolution shall become effective 60 days following its adoption in accordance with California Government Code section 66017, subdivision (a). 16. Severability. Each component of the Fee and all portions of this Resolution are severable. Should any individual component of the Fee or other provision of this Resolution be adjudged to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective, and the Fee shall be fully effective except as to that component that has been judged to be invalid. 17. Supersession /Repeal /Savings Clause. All resolutions and parts thereof in conflict with the provisions of this resolution are superseded and repealed, effective on the effective date of 21 this resolution. However, violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this resolution, under any chapter, ordinance, or part of an ordinance, or resolution or part of a resolution, shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal. 22 EXHIBIT A PARK LAND DEVELOPMENT IMPACT FEE Land Use Type Fee Amount Unit of Measurement Single Family Residential $5,787 Unit Multifamily Residential $3,897 Unit Accessory Dwelling $1,985 Unit Commercial $1,096 1,000 square feet of building space Office $1,049 1,000 square feet of building space Industrial $667 1,000 square feet of building space 23 ATTACHMENT 2 CITY OF PETALUMA MITIGATION FEE ACT NEXUS REPORT PARK LAND DEVELOPMENT IMPACT FEE — LAFFERTY RANCH MUNICIPAL RESOURCE GROUP, LLC 675 HARTZ AVENUE, SUITE 300 DANVILLE, CA 94526 (530) 878 -9100 JULY 2016 ft MUNICIPAL RESOURCE GROUP, LLc CITY OF PETALUMA MITIGATION FEE ACT NEXUS REPORT PARK LAND DEVELOPMENT IMPACT FEE - LAFFERTY RANCH Table of Contents MUNICIPAL RGSOURCG GROUP,— c PAGE INTRODUCTION................................................................................................................ ..............................1 II, POPULATION, EMPLOYMENT AND LAND USE PROPORTIONALITY ANALYSIS .................4 III, PARK LAND DEVELOPMENT IMPACT FEE ANALYSIS - LAFFERTY RANCH ........................7 IV. ADMINISTRATIVE AND REGULATORY REQUIREMENTS ............................. .............................12 APPENDIX A: ENGINEERS ESTIMATE OF COST w CITY OF PETALUMA MITIGATION FEE ACT NEXUS REPORT PARK LAND DEVELOPMENT IMPACT FEE — LAFFERTY RANCH JULY 2016 I. INTRODUCTION The Petaluma City Council adopted the City of Petaluma General Plan 2025 ( "General Plan ") in May 2008, The General Plan is a blueprint for the future of the community. It outlines orderly growth parameters, and includes policies to "ensure that the pace of growth does not create spikes that unduly strain City services "'; "ensure all new development provides the necessary public facilities to support development "2, and "collect the proportionate fair share of long -term infrastructure costs as entitlements are granted' 3. The City of Petaluma adopted a development impact fee program in May 2008 to implement the General Plan policies, and amended the development impact fee program in 2012. The purpose of the development impact fee program is to identify the public facilities that will be required to provide services to future residents and employees and to proportionately allocate the cost of those facilities to future residential and commercial development projects. The 2008 and 2012 development impact fee programs included a Park Land Development Impact Fee to enable the City to provide funding for the construction of three acres of community parks and two acres of neighborhood parks per one - thousand new residents. The City now intends to construct certain improvements in Lafferty Ranch, a 269 acre City -owned regional park facility. Improvements will include construction of trails and related improvements. The General Plan states that Lafferty Ranch "would provide access to hiking trails on Sonoma Mountain for the greater Sonoma Area, should development of minimal facilities be achieved to allow public access. "' The General Plan also contains a policy to "continue to maintain Lafferty Ranch as a City -owned open space for possible future passive public use. "5 The purpose of this Mitigation Fee Act Nexus Report — Park Land Development Impact Fee — Lafferty Ranch ( "Report") is to update and amend the existing Park Land Development Impact Fee to include Lafferty Ranch improvements and to proportionately allocate the cost of those improvements to future development projects. ' City of Petaluma: General Plan 2025, adopted May 2008; p. 1 -22; Policy and Program I -P -47 2 Ibid. Policy and Program 1 -P -48 s Ibid. Policy and Program 1 -P -48A 4 Ibid. Page 6 -8 5 Ibid. Policy and Program 6-P- 15C THE MITIGATION FEE ACT This Report has been prepared pursuant to the State of California's enabling legislation for development impact fees. The authority for establishing development impact fees for residential and non - residential development projects is found in the Mitigation Fee Act, also known as AB 1600, as codified in the California Government Code beginning with Section 66000. The Mitigation Fee Act permits local agencies to establish and collect a fee as a condition of approval of a development project for the purpose of defraying the cost of public facilities. The fee may include costs attributable to increased demand for public facilities by future development. The fee may also include the cost of refurbishing existing facilities to maintain an existing level of service or to achieve an adopted level of service that is consistent with the General Plan. The public facilities must be identified in a capital improvement plan, the General Plan, an applicable specific plan or other public documents. The fee may not be used to pay for existing deficiencies in public facilities. Under the Mitigation Fee Act, a local agency considering an action establishing, increasing or imposing a fee as a condition of approval of a development project must do all of the following: 1. Identify the purpose of the fee. 2. Identify the use to which the fee is to be put. 3. Determine that there is a reasonable relationship between the fee's use and the type of development project upon which the fee is imposed. 4. Determine that there is a reasonable relationship between the need for the public facility and the type of development project upon which the fee is imposed. 5. Determine that there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development project upon which the fee is imposed. This Report provides the analysis required by the Mitigation Fee Act and the basis for the findings required to adopt and implement an amendment to the Park Land Development Impact Fee to include the Lafferty Ranch improvements. ORGANIZATION OF THE REPORT Chapter II provides an analysis of the existing population and employment in Petaluma, as compared to the future population and employment under build -out of the General Plan. The purpose of this analysis is to proportionately allocate the cost of future Lafferty Ranch improvements between the existing population and future development. Chapter III provides a description of the proposed Lafferty Ranch improvements. Chapter III also calculates the amount by which the Park Land Development Impact Fee will increase as a result of including the Lafferty Ranch improvements in the fee program. Chapter IV presents the administrative and compliance requirements for the Mitigation Fee Act. Appendix A to the Report provides a detailed Engineer's Estimate of cost for the Lafferty Ranch improvements. i ll I'_ � .i "' I s t, k( t lt3 "ilt IEII�)flC_• ('(`(' illl 't � .:I }('I} i�s;� - -,+ '016 II. POPULATION, EMPLOYMENT AND LAND USE PROPORTIONALITY ANALYSIS The Mitigation Fee Act requires the City to proportionately allocate the cost of future public facilities to the existing population and future development. To determine the proportionate amount of future public facility costs that are attributable to the increased demand by future development, mitigation fee studies compare the demand for services and facilities by the existing residential and commercial development to the demand for services by future residential and commercial development, through build -out of the General Plan. Demand for services by residential development is typically measured by population estimates. The analysis uses the existing population of 58,1656 persons, and the build -out population of 72,7077 persons as the basis for allocating the cost of public facilities that serve existing and future residential development. Demand for services by commercial development is typically measured by the number of employees per 1,000 square feet of building space. However, employees tend to have less impact on public facilities than residents. This analysis uses the number of hours a fulltime employee is present in the City of Petaluma (40 hours) divided by the number of hours in a week (168 hours) as the ratio of the impact one employee may have on public facilities, as compared to one resident. Thus, for purposes of this analysis, one employee is considered to have the same impact as .24 residents (40/168). This is known as an "employee resident equivalent." The analysis uses the existing number of employees of 33,2888, and the build -out number of employees of 46,5409 as the basis for allocating the cost of public facilities that serve the existing and future commercial development. Table II -1 presents the combined existing and future population, employees and "resident equivalents ". It is used to allocate the proportionate share of the cost of future Lafferty Ranch improvements that will serve both the existing population and future development. 78.9% of the cost is assigned to existing population and 21.1 % is assigned to future development. 6 State of California Department of Finance Demographic Unit, Table 2: E -5 City of Petaluma: General Plan 2025, adopted May 2008; p. 1 -10 8 City of Petaluma: General Plan 2025, adopted May 2008; p. 1 -10. Also includes 128 additional employees in 63,100 commercial square feet occupied since 2005. 9 Ibid. 1, at p. 1 -10 I,.— ,'•�`�ll!(1'Ef �` %'tt 1 ls'�,Ik Table 1T -1- Pnnnlntinn_ Fmnlovees and Resident Equivalents Source: City of Petaluma General Plan 2025; California Department oft finance; MKU LAND USE AND FEE CATEGORIES Future developments' share of the cost of facilities is allocated to residential and non- residential to land uses. Residential land uses include single family, multifamily and accessory dwelling units. Non - residential land uses include commercial, office and industrial uses. The allocation of the cost of facilities for residential land uses is based on the number of persons per household, using United States Census Bureau data. The allocation of the cost of facilities for non - residential land uses is based on the number of employee resident equivalents, using Petaluma General Plan data. Employee resident equivalents are based on the number of employees in each non - residential land use multiplied by the .24 factor discussed earlier in this Report. Table II -2 provides the persons per household for residential development projects and the employee resident equivalents for non - residential development projects. This information is used in calculating the amendment to the Park Land Development Impact Fee in Chapter III. Table TT -2- Persons ner Household and Resident F.ouivalents ner 1.000 Square Feet Existing Population Future Development Build -out (2025) Residents 58,165 14,542 72,707 "Employee resident equivalents" em to ees multiplied by .24) (33,288 x.24) 7,989 (13,252 x.24) 3,181 (46,540 x.24) 11,170 Total "resident equivalents" 66,154 17,723 83,877 Percent "resident equivalents" 78.9% 21.1% 100% Source: City of Petaluma General Plan 2025; California Department oft finance; MKU LAND USE AND FEE CATEGORIES Future developments' share of the cost of facilities is allocated to residential and non- residential to land uses. Residential land uses include single family, multifamily and accessory dwelling units. Non - residential land uses include commercial, office and industrial uses. The allocation of the cost of facilities for residential land uses is based on the number of persons per household, using United States Census Bureau data. The allocation of the cost of facilities for non - residential land uses is based on the number of employee resident equivalents, using Petaluma General Plan data. Employee resident equivalents are based on the number of employees in each non - residential land use multiplied by the .24 factor discussed earlier in this Report. Table II -2 provides the persons per household for residential development projects and the employee resident equivalents for non - residential development projects. This information is used in calculating the amendment to the Park Land Development Impact Fee in Chapter III. Table TT -2- Persons ner Household and Resident F.ouivalents ner 1.000 Square Feet Source: City of Petaluma; United States Census Bureau; MKG 10 Source: United States Bureau of the Census for single family residential and multi- family residential units; City of Petaluma for accessory dwelling units. 11 Source: City of Petaluma General Plan 2025. Persons per household10 Employees per 1,000 square feet" Employee resident equivalents per 1,000 s . ft. (employees x.24) Single family residential 2.915 Multifamily residential 1.963 Accessory dwelling unit 1.0 Commercial 2.3 .552 Office 2.2 .528 Industrial 1.4 .336 Source: City of Petaluma; United States Census Bureau; MKG 10 Source: United States Bureau of the Census for single family residential and multi- family residential units; City of Petaluma for accessory dwelling units. 11 Source: City of Petaluma General Plan 2025. Nli x.11 :; "(''lut; Lafferty Ranch improvements, estimated project costs, amount attributable to the development impact fee program and the fees for all land use categories are presented in Chapter III. 7) / f,,I� III. PARK LAND DEVELOPMENT IMPACT FEE ANALYSIS — LAFFERTY RANCH The Mitigation Fee Act requires the City to identify the purpose of the fee and to identify the use to which the fee is to be put. This Chapter addresses these requirements by identifying the Lafferty Ranch improvements proposed to be financed in part by the Park Land Development Impact Fee program. The Lafferty Ranch improvements include planning, design and construction of the Ranch History Trail, Petaluma Valley Trail, North Bay Trail, paved parking, storm water pollution protection, restroom facilities, pedestrian bridges, signage, fencing, gates and bollards. Appendix A provides the Lafferty Ranch Conceptual Plan Public Access — Engineer's Estimate of costs for the improvements. The Engineer's Estimate of cost is $3,941,800. The Mitigation Fee Act imposes certain administrative requirements on local agencies. Pursuant to Government Code Section 66005(a) of the Act, the City is authorized to recover the full cost of providing services that are funded by the mitigation fees, including recovery of administrative costs incurred in compliance with the Act. In the August 2012 Mitigation Fee Act Nexus Report to the City of Petaluma prepared by Municipal Resource Group, administrative costs for compliance were estimated to be 2.02% of the program costs over the period covered by the General Plan. Based on the Lafferty Ranch improvement costs of $3,941,800, the 2.02% administrative cost is $79,624. Table III -1 allocates a portion of the total cost of Lafferty Ranch improvements to future development based on future development's proportionate 21.1% share of costs, from Table II -l. Table III -1: Lafferty Ranch Improvements — Allocation of Costs LAFFERTY RANCH (A) Engineer's estimate of cost $3,941,800 (B) Administrative cost (2.02% of Engineer's Estimate of Cost) $ 79,624 (C) Total cost (A + B) $4,021,424 Amount attributable to future development (21.1 % x C) $ 848,520 Source: City of Petaluma; MRG 11 CALCULATION OF THE FEE PER RESIDENT EQUIVALENT The total cost of Lafferty Ranch improvements attributable to future development projects is $848,520 (Table III -1). The total number of future "resident equivalents" (residents plus employee resident equivalents) was determined to be 17,723 (Table II -1). Dividing the total cost by the total resident equivalents results in a cost per resident equivalent of $48, as presented in Table III -2. Table TTT -2 Lnfferty Ranch Tmrn•ovement Cost ner Resident F.auivalent Source: City of Petaluma; MRG CALCULATION OF THE FEE PER RESIDENTIAL UNIT The Park Land Development Impact Fee is imposed on each future residential unit. To calculate the additional Lafferty Ranch component of the fee per residential unit, the cost per resident equivalent ($48) is multiplied by the average number of residents per unit. The City's existing impact fee program established an average of 2.915 residents per single family unit in Petaluma, an average of 1.963 residents per multifamily unit and an average of 1.0 residents per accessory dwelling unit (see Table II -2). Table III -3 calculates the Lafferty Ranch component of the fee per residential unit by multiplying the residents per unit (from Table II -2) by the cost per resident equivalent ($48). Table TIT-3- T.nfferty Ranch Comnonent of the Fee ner Residential Unit Residential Units Future Development (A) Amount attributable to future development $848,520 (B) Resident equivalents from future development 17,723 Amount per resident equivalent (A divided by B) (rounded) $48 Source: City of Petaluma; MRG CALCULATION OF THE FEE PER RESIDENTIAL UNIT The Park Land Development Impact Fee is imposed on each future residential unit. To calculate the additional Lafferty Ranch component of the fee per residential unit, the cost per resident equivalent ($48) is multiplied by the average number of residents per unit. The City's existing impact fee program established an average of 2.915 residents per single family unit in Petaluma, an average of 1.963 residents per multifamily unit and an average of 1.0 residents per accessory dwelling unit (see Table II -2). Table III -3 calculates the Lafferty Ranch component of the fee per residential unit by multiplying the residents per unit (from Table II -2) by the cost per resident equivalent ($48). Table TIT-3- T.nfferty Ranch Comnonent of the Fee ner Residential Unit Residential Units Residents per Unit Cost per Resident Equivalent Fee per Unit rounded Single family unit 2.915 $48 $140 Multi- family unit 1.963 $48 $ 94 Accessory dwelling unit 1.0 1 $48 $ 48 Source: City of Petaluma; MRG CALCULATION OF THE FEE PER 1,000 SQUARE FEET OF BUILDING SPACE Table III -4 calculates the Lafferty Ranch component of the fee per 1,000 square feet for future commercial, office and industrial development projects by multiplying the number of resident equivalents per 1,000 square feet of building space (from Table II -2) by the cost per resident equivalent ($48). Table ITT -4- Lafferty Ranch C omnonent of the Fee ner 1.000 Sonare Feet Land Use Resident Equivalents per 1,000 Square Feet Cost per Resident Equivalent Fee per 1,000 Square Feet (rounded) Commercial .552 $48 $26 Office .528 $48 $25 Industrial .336 $48 $16 Source: City of Petaluma; MRG CURRENT AND PROPOSED PARK LAND DEVELOPMENT IMPACT FEES The current and proposed Park Land Development Impact Fees, including the Lafferty Ranch component, are provided in Table III -5. Table 111 -5- Current and Prnnosed Park Land Develonment Imnact Fee Land Use Current Fee Effective July 2016 Lafferty Ranch Component Proposed Park Land Development Impact Fee Single family unit $5,647 $140 $5,787 Multi- family unit $3,803 $ 94 $3,897 Accessory dwelling unit $1,937 $ 48 $1,985 Commercial $1,070 $ 26 $1,096 Office $1,024 $ 25 $1,049 Industrial $ 651 $ 16 $ 667 Source: City of Petaluma; MRG MITIGATION FEE ACT FINDINGS The Mitigation Fee Act requires a local agency considering an action establishing, increasing or imposing a fee to address the following procedural requirements. L Identify the purpose of the fee. The purpose of the Park Land Development Impact Fee is to provide funding to achieve the City's goal of maintaining existing service levels and to provide adequate community, neighborhood and regional park facilities to meet the broad range of needs of Petaluma residents and employees, as established in the City of Petaluma General Plan. The proposed amendment to the fee is for the purpose of achieving the General Plan goal of access to Lafferty Ranch and Sonoma Mountain by constructing Lafferty Ranch trail and access facilities for the benefit of Petaluma residents and employees. P!C t; 2. Identify the use to which the fee is to be put. The proceeds from the amendment to the fee will be used to plan, design and construct the Ranch History Trail, Petaluma Valley Trail, North Bay Trail, paved parking, storm water pollution protection, restroom facilities, pedestrian bridges, signage, fencing, gates and bollards. 3. The relationship behveen the fee's use and the type of development project upon which the fee is imposed. The fee will be applied to residential, commercial, office and industrial development projects. Residential development projects will generate new demands for park and trail facilities by new residents in the City of Petaluma. Commercial, office and industrial development projects will generate new demands for park and trail facilities by new employees in the City of Petaluma. The Lafferty Ranch improvements constructed with the proceeds of the fee will address and mitigate the additional impacts and demands created by these residential and non - residential development projects. 4. The relationship between the need for the facility and the type of development project on which the fee is imposed. The fee will be applied to single family residential, multifamily residential, commercial, office and industrial development projects. Residential development projects generate new residents who will use and place daily demands on park and trail facilities. Employees in new commercial, office and industrial development projects will use and place demands on park and trail facilities before and after work, and new companies in Petaluma will have access to park and trail facilities for company events, outdoor wellness programs and as local recreational amenities for use by employees. The Lafferty Ranch improvements developed with the proceeds of the fee will address and mitigate the additional impacts and demands created by residential and non - residential development projects. 5. The relationship between the amount of the fee and the cost of the facility or portion of the facility attributable to the development on which the fee is imposed. The Lafferty Ranch component of the fee has been calculated by apportioning the cost of Lafferty Ranch improvements to the number of residents generated by each type of new residential unit, and to the proportional "resident equivalent" of each employee generated by commercial, office and industrial development projects. Because the Lafferty Ranch improvements will serve existing and future residents and employees, the costs have been allocated proportionately among existing and future residents and employees. 0 �.�..�; `Ifo.'� .'?U1r }11'1 h lli: l IV. ADMINISTRATIVE AND REGULATORY REQUIREMENTS This Report recommends that the City of Petaluma incorporate approximately two percent administrative costs on all Mitigation Fee Act fees to recover the cost of compliance with applicable law. The administrative requirements are described in this Chapter. THE MITIGATION FEE ACT The Mitigation Fee Act imposes certain administrative requirements on local agencies. Pursuant to Government Code Section 66005(a) of the Act, a City is authorized to recover the full cost of providing services that are funded by the mitigation fees. This includes recovery of administrative fees incurred in compliance with the Act. The procedural and administrative requirements include the following: 1. Analysis required to enact or modify a fee: In any action establishing, increasing, or imposing a fee as a condition of approval of a development project, the City shall cause a report to be prepared and make findings as follows: ■ Identify the purpose of the fee. ■ Identify the use to which the fee is to be put. ■ Determine how there is a reasonable relationship between the fee's use and the type of development project on which the fee is imposed. ■ Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed. ■ Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed. 2. Notice and conduct a public hearing: Prior to adopting an ordinance, resolution, or other legislative enactment adopting a new fee or approving an increase in an existing fee, the City shall hold a public hearing, at which time oral or written presentations can be made, as part of a regularly scheduled meeting. Notice of the time and place of the meeting, including a general explanation of the matter to be considered, shall be published. j '� (.. ii' (1I PYI ;l - iii 3. Accounting requirements The City shall deposit the fees in a separate capital facilities account or fund in a manner to avoid any commingling of the fees with other revenues and funds of the City and expend those fees solely for the purpose for which the fee is collected. Any interest income earned by money in the capital facilities account or fund shall also be deposited in that account or fund and shall be expended only for the purpose for which the fee was originally collected. 4. Annual reporting requirements, public hearing For each separate account or fund established, the City shall, within 180 days after the last day of each fiscal year, make available to the public the following information for the fiscal year: ■ A brief description of the type of fee in the account or fund. ■ The amount of the fee. ■ The beginning and ending balance of the account or fund, the amount of the fees collected and the interest earned. ■ An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. ■ An identification of an approximate date by which the construction of the public improvement will commence if it is determined that sufficient funds have been collected to complete financing on an incomplete public improvement. ■ A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. ■ The amount of refunds made. The City shall review this information at the next regularly scheduled public meeting not less than 15 days after this information is made available to the public. Notice of the time and place of the meeting, including the address where this information may be reviewed, shall be mailed, at least 15 days prior to the meeting, to any interested party who files a written request with the local agency for mailed notice of the meeting. 5 0 5. Five year requirements; public hearing For the fifth fiscal year following the first receipt of fees, and every five years thereafter, the City shall make all of the following findings with respect to that portion of the account or fund remaining unexpended, whether committed or uncommitted: • Identify the purpose to which the fee is to be put. • Demonstrate a reasonable relationship between the fee and the purpose for which it is charged. ■ Identify all sources and amounts of funding anticipated to complete financing for incomplete improvements. • Designate the approximate dates on which the funding referred to above is expected to be deposited into the appropriate account or fund. • For purposes of these findings, the City shall hold a public hearing, at which oral or written presentations can be made, as part of a regularly scheduled meeting. Notice of the time and place of the meeting, including a general explanation of the matter to be considered, shall be published. ■ The dedicated land, and the fees, may only be used for developing new parks or rehabilitating existing parks. • The City must have an adopted general plan or specific plan containing policies and standards, and the park and recreational facilities must be in accordance with definite principles and standards. • The amount and location of land to be dedicated and the fees to be paid must bear a reasonable relationship to the use of the park and recreational facilities for the future inhabitants of the subdivision. • A schedule must be developed specifying how, when, and where the City will use the land or fees to develop park and recreational facilities • Fees collected must be committed within five years of payment, or the issuance of one - half of the lots created by the subdivision, whichever occurs later. • If the fees are not committed within the applicable time frames, they must be distributed to the then owners of record. APPENDIX A LAFFERTY RANCH CONCEPTUAL PLAN FOR PUBLIC ACCESS ENGINEERS ESTIMATE OF COST a LAFFERTY RANCH CONCETUAL PLAN PUBLIC ACCESS - ENGINEER'S ESTIMATE 1 1 Mobilization / Demobilization 1 LS $ 50,000.00 $ 50,000.00 Vista Point/Resting Place (Grade /Bench) 2 _ 50ft x 8ft Broadwalk 1 LS $ 80,000.00 $ 15,000.00 5 1 SyyppP 1 $ 15,000.00 $ 2,500.00 2 AC Paved Parking 1 LS $ 150,000.00 $ 150,000.00 $ 2,000.00 3 Vaulted Toilet 2 EA $ 75,000.00 $ 150,000.00 T 4 Toilet Building 2 EA $ 75,000.00 $ 150,000.00 $ 1,500.00 5 Accessible Parking space J 2 EA $ 5,000.00 $ 10,000.00 $ 7,500.00 6 Parking Signs 2 EA $ 1,000.00 $ 2,000.00 $ 3.00 7 Interpretive Signs 2 EA $ 2,000.00 $ 4,000.00 $ 7.00 8 Trail overview map! signs 2 EA $ 3,000.00 $ 6,000.00 9 Fencing 1 LS $ 50,000.00 $ 50,000.00 10 Gates 2 EA $ 7,500.00 $ 15,000.00 2 11 Bollards _ 1 LS $ 5,000.00 $ 5,000.00 1 1 jSWPPP 1 LS 1 $ 25,000.00 $ 25,000.00 Vista Point/Resting Place (Grade /Bench) 2 _ 50ft x 8ft Broadwalk 1 LS $ 80,000.00 $ _ 80,000.00 5 3 Vista Point/Resting Place (Grade/Bench) 5 EA $ 2,500.00 $ 12,500.00 EA 4 Interpretive Signs 5 Wayfinding signs $ 2,000.00 $ 10,000.00 $ 1,500.00 5 Trail overview 2 2 $ 3,000.00 $ 6,000.00 $ 15,000.00 6 Wayfinding signs 5 SF $ 1,500.00 $ 7,500.00 8 ! 7 Gates 2 $ 3.00 $ 7,500.00 $ 15,000.00 Steps 8 Trail Clear and Grub 27500 SF $ 3.00 $ 82,500.00 2 9 Grade/fillforaccessitNlity 27500 SF $ 7.00 $ 192,500.00 SWPPP 1 EA 1 $ 25,000.00 $ 25,000.00 2 lVista Point/Resting Place (Grade /Bench) 4 EA $ 3,500.00 $ 14,000.00 3 Interpretive Signs 5 EA $ 2,000.00 $ 10,000.00 4 Trail overview 2 EA $ 3,000.00 $ 6,000.00 5 Wayfinding signs 5 EA $ 1,500.00 $ 7,500.00 6 Gates 2 EA $ 7,500.00 $ 15,000.00 7 Trail Clear and Grub 56000 SF $ 2.00 $ 112,000.00 8 Grade/fill 56000 SF $ 3.00 $ 168,000.00 9 Steps 100 EA $ 300.00 $ 30,000.00 1 SWPPP — _ . .. _1 __. _ EA $ 25,000.00 $ 25,000.00 2 Vista Point/Resting Place (Grade /Bench) 5 EA $ 3,500.00 $ 17,500.00 3 Interpretive Signs 5 EA $ 2,000.00 $ 10,000.00 4 Trail overview 2 EA $ 3,000.00 $ 6,000.00 5 Wayfinding signs 5 EA $ 1,500.00 $ 7,500.00 6 Gates 2 EA $ 7,500.00 $ 15,000.00 7 Trail Clear and Grub 144000 SF $ 2.00 $ 288,000.00 8 Grade/fill 144000 SF $ 3.00 $ 432,000.00 9 Steps 250 EA $ 300.00 $ 75,000.00 10 Bridges 2 EA $ 75,000.00 $ 150,000.00 Planning and Design Cost@ 15% $ 370,000.00 CM & Sub Consultants @10% $ 130,000.00 CEQA and EIR J $ 500,000.00 I Contingency 20% 1 $ 490,300.00 "7 Lafferty ftoject SumT �M Project Activities & Timeline Days Staff Hours CIP Staff Cost Preliminary Project Discussion Mapping of Possible Amenity and Trail Locations Refine Estimate of Cost or Budget, Funding Sources and Timeline Develop and Describe Maintenance & Management Plan Fee Review/Study to Revise / Restructure Pork Development or Community Facility Impact Fees — --------- M Develop RFP, Advertise, Evaluate Proposals and City Council Approval of Consultant Notice to Proceed Initial Environmental Survey and Land Survey 'T Make Information Available to Public Revise Existing or Develop Draft Concepts & Programming, Initial Renderings and Design Presentation at Rec/Park Commission and Other (Bike/Ped?) Committees Additional Review at Commission Meetings as May be Needed ,P Complete Revisions and Develop Final Conceptual Master Plan City Council Approval of Conceptual Design Grant Applications and Funding Allocations — Assemble Project Budget RFP for Environmental Consultant and Approval of Consultant Agreement Environmental Reviews and Permitting CEQA Process Acquisition of Easements if Necessary Development of Long Term Maintenance Plan or Agreement Establish Monitoring and /or Enforcement Practices RFP for Design Services if Necessary and Approval of Consultant Contract Final Design Review and Approval Advertise, Bid, Bid Open and Award of Bid, Notice to Proceed Construction Final Acceptance of Project 1 12 N Preliminary Estimated Project Budget Cost Mobilization & Demobilization $50,000 Parking Area $557,000 SWPPP, Paved Parking, Vaulted Toilet & Building, Parking Spaces, Parking Signs, Interpretive Signs, Trail Signs, Park Rule Signs, Fencing, Gates, Bollards, Ranch History Trail $431,000 SWPPP, Boardwalk, Vista Bench Rest Area, Interp., Wayfinding & Trail Signs, Gates, Clear& Grub, Grade /Fill for Accessibility Petaluma Valley Trail $387,500 SWPPP, Bench Rest Area, Interp., Wayfinding Signs, Gates, Clear & Grub, Grade/Fill, Steps North Bay Trail $1,026,000 SWPPP, Bench Rest Area, Interp, Wayfinding Signs, Gates, Clear & Grub, Grade /Fill, Steps, Bridges Professional Services $500,000 Concept Planning, Design, Sub Consultants and Project Management Cost CEQA, EIR and Permitting $500,000 Contingency $490,300 Preliminary Estimated Project Budget Not Including Staff Costs $3,941,800 WA FAFA