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Home My WebLink AboutStaff Report 1.A 07/29/2019_:1EN1 • ITEM DATE: July 29, 2019 TO: Honorable Mayor and Members of the City Council through City Manager' FROM:Sue Castellucci, Housing Administrator Heather Hines, Planning Manager SUBJECT: Discussion and Direction Regarding Essential, Affordable, and. Diverse Local Housing Options RECOMMENDATION It is recommended that the City Council discuss and provide direction regarding policies and priorities to incentivize essential, affordable and diverse local housing options. BACKGROUND In 1984, the City of Petaluma adopted an "inclusionary" housing policy reflecting the community's values regarding essential housing for Petaluma. Since inception the City's implementing Housing Program has been mission -driven and flexible in order to allow it to respond to the changing needs of the community. Starting in 1984 with small complexes for the elderly, the city's program now serves a spectrum of housing needs, including: • Homeless shelters for both families and individuals • Shared and transitional housing for those fames leaving shelters • Workforce housing for families and individuals • Homeownership opportunities • Special needs housing • Housing rehabilitation The City's success in developing essential housing is largely dependent on nonprofit partners. These partners develop and manage housing units and deliver services to people most in need. In turn the City's Housing Program's success has been recognized, including the Non -Profit Housing Association of Northern California (NPH) 1994 Public Sector award and recognition of Petaluma on the NPH's "Honor Roll" (the highest level) for their 2002 San Francisco Bay Area Housing Crisis Report Card. Regional Housing Needs Allocation Historically the City has updated and certified its Housing Element in keeping with the State's four-year planning cycle. Starting in 2015 the State allowed an eight-year cycle for those communities in good standing with certified housing elements and compliant annual reporting. As part of each planning cycle Petaluma has been assigned their Regional Housing Needs Allocation, reflecting its fair share of housing units across each of the designated income levels. Petaluma has a strong record of not only demonstrating capacity to develop units in line with the assigned RIINA, but also meeting the threshold permits for each income category within the four- year cycle. To date, the City has met their RIINA for each planning period except for the 2009- 2014 planning period, which coincided with the Great Recession and the dissolution of redevelopment. The later significantly reduced monies available to the City for the provision of affordable housing and funding continues to be a challenge in the current 2015-2023 RHNA cycle. The table below illustrates the City's current progress, as of June 305 20195 in meeting RHNA numbers in each of the four income categories for the 2015-2023 planning cycle. REGIONAL HOUSING NEED ALLOCATION 2015-2023 Income Cateaory ` Home Rent Stabilization New Units Needed Permits issued_: °la Met control Very Low 199 9 5% 0-50% of AMI* vouchers Low 103 18 17% 51-80% of AMI Moderate 121 76 63% 81-120% of AMI Above Moderate 322 704 219% >120% of AMI TOTALS 745 807 *AMI: Average Median Income Existing Affordable Housing in Petaluma Historically the City has had a very strong Housing Program evidenced by the number of existing affordable housing units in Petaluma. The table below illustrates existing essential housing units that have been subsidized by the City of Petaluma since inception of the Housing Program, EXISTING AFFORDABLE UNITS Senior Housin 699 units 17 ro erties An A e 680 units 9 ro erties Disabled 28 units 2 properties First Time Homebuver 169 units Homeless Shelter 100 beds 34 transitional beds Famil Shelter 11 rooms 33 famil members Transitional Housing 4 houses 20 homeless persons Permanent Supportive 3 houses 2 houses for veterans 1 house for mental disability Mobile Home Rent Stabilization 368 mobile homes rent control Section 8 399 units rent vouchers Pipeline Housing Projects Pipeline projects are those that are under construction, approved, and/or in the planning review process. Pipeline projects reflect more recent housing production that has not technically hit the market but has made significant strides toward becoming a reality. The following table outlines Petaluma's pipeline housing projects to provide a look at more recent activity and a snap shot of housing likely to add to the housing market in the near future. What is apparent when looking at the list of pipeline projects in the chart below, is how few affordable housing units have been approved as inclusionary units associated with market rate development. PIPELINE HOUSING PROJECTS Project Status Vnits Affordable Vnits Altura Apartments Under Construction 150 23 Brody Ranch Under. Construction 199 25 Sunnyslope II Under Construction 18 0 Quarry Heights Under Construction 272 0 Omahony Mixed Use Approved 10 0 Riverfront Approved 273 0 North River Apartments Approved 184 0 Haystack Approved 178 27 De Cristo MF Approved 13 1 River City Apartments Approved 54 54 East Washington Commons Approved 28 0 Deer Creek Apartments In Review 129 0 Baywood Apartments In Review 299 0 River Bend In Review 30 5 Sid Commons Apartment In Review 215 TBD Davidon In Review 28 0 Corona Station Residential In Review 110 17 TOTAL 2,164 units 152 units If the pipeline projects are assumed to be completed prior to the end of the current RIiNA cycle in 2023, the City's compliance with RHNA numbers by each income levels improves slightly as shown in the table below. However, the unit counts decrease significantly as the income level decreases, demonstrating a continuing challenge facilitating the production of units at the lower income categories. 3 PERMITTED AND PIPELINE UNITS VS RHNA Income Category New Units Permits Pipeline Total Units % Met Needed Issued Units' Very Low 199 9 63 74 37% 0-50% of AMI* Low 103 18 58 76 74% 5140% of AMI Moderate 121 76 31 107 88% 81-120% of AMI Above Moderate 322 704 25012 2,716 843% > 120% of AMI TOTALS 745 807 29164 29971 Petaluma's housing stock continues to be significantly weighted toward single-family dwellings. At the conclusion of 2018, there was an inventory of 23,467 housing units in Petaluma. Of those units, 69% were single family dwellings, 19% were multi -family units, 8% were duets or townhomes, and 4% were mobile homes. Pending Housing Legislation California's housing crisis expands beyond city and regional boundaries and has received increasing attention at the statewide level. The number of housing bills continues to grow with broad ranging impacts under the guise of meeting housing needs for Californians. .The CASA Compact is one specific effort that has been widely discussed in the bay area in 2019. The CASA Compact is a 15 -year emergency housing policy package authored by the Committee to House the Bay Area and focused on confronting the housing crisis in the San Francisco Bay Area. The Compact sets out a series of policy reforms that are meant to be used to help state legislation create bills that help jurisdictions produce new housing units, preserve existing affordable housing units, and protect current residents from displacement, easing the housing crisis. While several elements of the CASA Compact appear to limit local government control, many others are things that Petaluma has proactively done to encourage housing production independently, such as reducing regulatory barriers to Accessory Dwelling Units (ADUs), reducing zoning restrictions near transit, requiring onsite inclusionary housing, and setting predictable impact fees for new development. There is a variety of housing legislation currently active and in the Committee process, Attachment 1 provides a list of those bills in process and includes a brief description of anticipated local impact is included under each bill. Staff anticipates that additional legislation will continue to come down from the State and it will be essential to track bills as they are introduced to ensure that the City is advocating as deemed appropriate by the City Council. DISCUSSION The purpose of the City Council workshop is to engage in a policy discussion and prioritization to guide Petaluma's Housing Programs and to respond to the needs of the community. This includes acknowledging the positive things that the City has done to facilitate affordable housing, Ll recognizing the unmet needs of the community, and identifying innovative approaches and available resources to facilitate essential, affordable, and diverse housing options The following discussion outlines regulations and incentives the City has already put into place to facilitate affordable housing along with suggestions for improvement and ideas for policy innovation. Additionally, staff has extended invitations to affordable housing providers, market rate developers, and community members to ensure a robust discussion and identification of the opportunities and obstacles to providing a range of housing to meet the needs of Petaluma. The ultimate objective of this discussion is to provide information to facilitate the discussion and ultimately seek direction from the City Council on the range of policy options and prioritization to best address the housing crisis in Petaluma. There is no action for the City Council to take at the July 29th workshop. Petaluma Regulations/Incentives Inclusionary Housing Ordinance In 2018, in response to recent case law (AB 1505), the City amended the General Plan to revise housing element program 4.3 to require 15% onsite inclusionary housing for residential development of five or more units. To implement this policy, the City Council approved a Zoning Text Amendment to add Section 3.040 to the Implementing Zoning Ordinance (IZO) outlining specific requirements for inclusionary housing, including percentages, income requirements, and provisions for alternative compliance (Attachment 2). When Section 3.040 was adopted by the City Council there was an effectiveness clause that allowed residential development that was deemed complete prior to January 1, 2019 to be processed under the previous inclusionary housing provisions which allowed payment of housing in lieu fees instead of construction of onsite units. Due to the relative recent adoption of the inclusionary housing ordinance, the City has not processed any projects under these new requirements and therefore staff is not able to provide concrete results related to the impact of this new local legislation on the provision of affordable housing. There have been several projects, including Altura Apartments, Brody Ranch, and Haystack, that have provided on site affordable housing to meet their inclusionary housing requirements. However, all three of these projects chose to provide onsite inclusionary without the regulatory requirement of the current ordinance. There was also a rush of some pipeline projects, including Deer Creek Apartments and Baywood Apartments, to gain completeness prior to the end of 2018, in order to maintain the flexibility to pay housing in -lieu fees as opposed to providing affordable units onsite. While it is too early to provide a concrete analysis on the effectiveness of the newly adopted inclusionary housing ordinance, there is anecdotal feedback that may warrant consideration and amendment to some provision of the ordinance, including: • The ordinance requirements as currently drafted are difficult to apply to small residential projects due to the percentage requirements associated with income categories and calculation of fractional units. For instance: o Six -lot for sale project 0 159/o = 0.9 unit onsite inclusionary requirement ■ 0.9 = 1 unit with application of fractional unit provision 0 7.5% low income = 0.45 ® 0.45 = payment of in lieu fee with application of fractional unit provision 0 7.5% moderate income = 0.45 ■ 0.45 = payment of in lieu fee with application of fractional unit provision • The ordinance is very prescriptive with .percentage requirements for income levels depending on the type of project. A rental project requires 7.5% at very low income and 7.5% at low income. An Ownership project requires 7.5% at low income and 7.5% at moderate income. We have heard from developers that it is very difficult to fund a project with these requirements one approved project (Haystack) and one pipeline project (Corona Station Residential) have requested alternative compliance to approve a different income percentage for onsite inclusionary. • The ordinance currently lays out the provisions for dealing with fractional units (rounding up if a fraction greater than 0.5 and rounding down if a fractional unit is less than 0.5). However, this gets increasingly difficult when dealing with the fractional units as a result of the percentages associated with the income requirements, often resulting is an increase in the overall 15% requirement to be consistent with the fractional unit provisions. The table provided at Attachment 3 outlines the inclusionary requirements adopted by other jurisdictions as a metric for consideration. To address some of the items mentioned above the Council may want to consider amendments to provide for greater flexibility at the staff level with regard to income levels based on the specifics of the project and the current needs in the community and consider modifications to the applicability to allow smaller projects to pay an in -lieu fee instead of providing onsite affordable units. Development Impact Fees Also in 20183 in conjunction with the inclusionary housing ordinance, the City Council increased both the housing in lieu fees and the commercial linkage fees. Both of these fees provide funding for the City's housing fund which in turn provides funding for housing services and allows the City to partner with affordable housing providers to support affordable housing development. Petaluma's housing in -lieu fee is $10.21/square foot and is only used for payment of fractional units under 0.5 and if approved by the City Council as part of alternative compliance. The current commercial development housing linkage fee for non-residential development is: • Commercial: $2.89/square foot • Retail: $5.00/square foot • Industrial: $2.98/square foot Both fees were set in conjunction with a recent nexus study completed by Economic and Planning Services (EPS) as required by law. The commercial development housing linkage fees are collected prior to issuance of a building permit while the housing in -lieu fees are collected prior to certificate of occupancy for residential projects. C•� A common challenge to provision of housing in Petaluma is the City's current impact fee structure (Attachment 4). There are minimal exceptions in the current fee structure to reduce fees for affordable projects or to incentivize projects through the reduction of fees. Many other jurisdictions have adopted fee reductions to incentivize housing, encourage ADUs, and concentrate housing near transit. The City of Santa Rosa has recently adopted several such strategies to encourage housing in their downtown core, including elimination of impact fees for units above three stories to encourage more dense housing development within the downtown PDA. The Council may want to consider exploring ways to reduce impact fees .for affordable housing projects, to encourage denser housing development, and/or encourage innovative housing types (ADUs, tiny homes). Reduction or elimination of fees for affordable housing could be a tool for the City to partner and contribute despite the loss of redevelopment money that has been an essential tool to the success of many previous affordable housing development. Waiving impact fees for a 40 -unit 100% affordable housing project could reduce the developers performa by approximately $1,700,000. Accessory Dwelling Units There have been multiple state bills associated with Accessory Dwelling Units (ADUs) over the past several years that have modified the limits of local authority over the permitting of ADUs. The City of Petaluma has adopted local legislation to codify state requirements and has maintained requirements such as maximum size requirements of 720 square feet as allowed to be determined at the local level. In 2014 the City Council reduced impact fees for new accessory dwelling units by approximately 50% to reflect the reduced impacts as compared to a single-family home. Impact fees are collected at time of occupancy, consistent with all development impact fees for residential development. Most recently the City Council introduced an ordinance eliminating onsite parking requirements foI new ADUs in an effort to facilitate development of ADUs, increase diversity of housing types, increase housing options for the missing, middle, and encourage new units that are more affordable by design. Similar to the diversity in approach related to inclusionary requirements, there is variety in ADU ordinances among Sonoma County jurisdictions, as outlined below: ACCESSORY DWELLING UNIT ORDINANCES Petaluma • 720 s uare foot maximum • No onsite parking required • Consistent fees per unit regardless of size _ Santa Rosa • Up to 1,200 square feet or 50% of living area • Sliding scale for impact fees based on size of unit • No onsite parking if <750 square feet Rohuert Park • Tracks with State law Healdsbur • 1,200 square foot maximum • No onsite parking required ® No impact fees for units < 850 square feet Sonoma County • 1,200 square foot maximum • Sliding scale for impact fees based on size of unit • No impact fees for units <750 square feet Sebastopol ® Limited to 840 square feet and 50% of existing living area • Up to 1,000 square feet allowed on parcels greater than 15,000 square feet is currently working on a SB 2 grant proposal to create permit ready ADU plans to decrease soft costs associated with new ADUs and to decrease processing times and costs for property owners. Additionally, as previously discussed the Council has indicated a desire to consider a staggered fee payment option for new ADUs to allow payment of fees to occur over 3-5 years to further incentivize construction of new ADUs and to respond to challenges as identified by members of the public. Density Bonus Ordinance Petaluma has a local Density Bonus Ordinance codified in the IZO (Attachment 3) that tracks with state law and allows up to a 35% density bonus for qualifying projects based on the percentage and income level of affordable housing units provided as part of a residential development. To date only one development project has formally requested approval of a density bonus (De Cristo Multi Family Project). One additional project (Corona Station Residential Project) is likely to include a request for density bonus based on the proposed 10% moderate income units in order to use the reduced parking standards under the density bonus provisions. A density bonus request is also anticipated to increase the residential unit count for the previously approved Washington Commons project. With the newly adopted onsite inclusionary requirement for all residential development of five or more units, a project consistent with the City's inclusionary requirements will automatically qualify for a density bonus if desired to either increase allowable density or allow for a development concession such as parking, building height, etc. Some bay area cities have recently modified their local density bonus ordinances to go above the 35% density bonus mandated by state law. For instance, Santa Rosa recently adopted a supplemental density bonus ordinance that allows up to 100% density bonus within the downtown Priority Development Area (PDA). Other Sonoma County jurisdictions follow the State's density bonus provisions. SmartCode In concert with the Station Area Master Plan, the City adopted the revised SmartCode that serves as the regulatory zoning document for the core of Petaluma, surrounding the downtown SMART station. There are a variety of provisions in the current SmartCode that provide greater flexibility and reduce zoning controls in an effort to encourage high density residential development in the E downtown core and in close proximity to transit. For instance, the SmartCode provides for the following: • No density maximum • Reduced parking requirements • Increased height allowances Public/P�•ivate Partnerships The City has been able to leverage its housing funds by partnering with nonprofit developers to build affordable housing. The last three affordable developments that the City participated in, allowed City funds to be leveraged as follows: • 10:1 with Kellgren Senior Housing ($261,696/unit) • 7:1 with Logan Place Apartments ($392,467/unit) • 10:1 for the proposed River City Apartments ($511,104/unit) Based on the River City Apartments project as the most recent affordable housing project approved in Petaluma, the anticipated cost to provide one affordable rental unit is approximately $500,000. In lieu fees, if allowed by the City Council as alternatively compliance would generate approximately $22,000 for a 2,000 square foot unit. If those funds are able to be leveraged at a 10:1 ratio, the $22,000 collected could effectively turn into $220,000 which could provide funding to construct a portion of one affordable units at the current estimate of $500,000. While onsite inclusionary is preferred as a means of getting affordable units built as part of private development, the collection of housing fees and subsequent leveraging of those funds remains an important aspect of the larger discussion as a means to providing essential, affordable, and diverse housing to meet the needs of Petaluma. Land Donation The City's inclusionary housing ordinance provides for alternative compliance at the discretion of the City Council and indicates that land donation is a mechanism for achieving alternative compliance with inclusionary requirements. There have been several affordable housing projects that were viable due to land donated to the nonprofit, including: • Boulevard Apartments (owned by Buckelew) • Corona Ranch (owned by Eden Housing) • Frates Square (Housing Land Trust of Sonoma County development) • Corona Crescent (first time homebuyer development) • Hillview Oaks (first time homebuyer development) • Wisteria Subdivision (first time homebuyer development) lar to the discussion of in -lieu fees above, land donation is another potential tool for the City to facilitate affordable housing and work within public/private partnerships with non- profit partners. Surplus City Property Similar to land donation, staff has initiated an inventory of surplus City property to identify potential sites for affordable housing development and as a resource to leverage as the City's 9 contribution to public private partnerships. The recent River City Apartment project that is approved but not yet under construction involved the City's donation of an approximately 1.3 - acre parcel on Petaluma Boulevard to PEP Housing. Alternatively, the inventory of surplus City property may identify properties that could be sold and funds in turn used and leveraged through the Housing Program. Zoning Incentives The City may want to consider other zoning amendments to facilitate housing production. This is a powerful and relatively low-cost tool that the City can offer to incentivize private development and the production of housing, including affordable housing. Santa Rosa has been a local leader in looking at zoning code incentives for housing production, particularly in their downtown core. Over the last several years the City of Santa Rosa has adopted incentives including: • Supplemental density bonus—allowing up to 100% density bonus • Reduced discretionary review • Elimination of impact fees over third story • High Density Residential Incentive Program—reduction of impact fees and school fees and deferral of water and sewer fees The Council may want to consider exploring zoning incentives such as reduced residential parking requirements, broader discretionary review at the administrative level to reduce processing time and expense, housing as a permitted use in all residential, commercial, and mixed use zones, etc. Additionally, the City could consider proactively rezoning opportunity sites to remove constraints and streamline discretionary review for potential housing projects. POLICY OPTIONS There is no one solution to addressing the housing crisis. The discussion above and the summary below provides a laundry list of potential policy options for the City Council to consider. In addition, the objective of the July 291h workshop is to bring together the variety of players to identify obstacles and collaborate on strategies to address Petaluma's housing needs. Prioritization will also be an important aspect of the discussion to identify the key policy options to explore while also recognizing the breadth of work and limited resources to bring these items to fruition. The items summarized below are offered as options to frame that discussion and are not specific recommendations. 1. Consider fee reductions/waivers for affordable- housing projects. 2. Consider fee reductions for missing middle housing types (ADUs, tiny homes, etc.). 3. Explore staggering collection impact fees for new ADUs. 4. Revise inclusionary housing ordinance to: 10 • modify applicability threshold to allow projects less than ten units to pay m4ieu fees to meet inclusionary requirements • Provide greater flexibility in percentages related to income levels 5. Explore a supplemental density bonus ordinance to increase housing density options located near transit. 6. Complete surplus property inventory to identify potential housing sites owned by the City of Petaluma to use to facilitate public/private partnerships. 7. Explore zoning incentives such as: • Reduction in residential parking requirements • Adoption of small lot zoning provisions for cottages, tiny homes, etc. • Reducing discretionary review hurdles for residential development 8. Pursue establishing a permit ready ADU program through SB 2 grant funding. 9. Explore designating a portion of the transfer tax received from the sale of residences in Petaluma toward the City's housing fund. 10. Consider utilizing a percentage of the redevelopment residual receipt that the City receives each year from the dissolution of redevelopment toward affordable housing projects. 11. Consider tenant protection options to keep low income community from losing their housing such as anti -discrimination ordinance to protect housing choice voucher holders. 12. Pursue opportunities to partner with organizations that are able to purchase market -rate rental communities and keep the rents at below market rent. This can also help with the "missing middle" income residents whose income is above the moderate -income level of 120%. ATTACHMENTS 1. State Housing Bills in Progress 2. IZO Chapter 3.040 3. Inclusionary Housing Ordinance Comparison Chart 4. Development Impact Fee Booklet, July 1, 2019 11 ATTACHMENT 1 CALIFORNIA STATE HOUSING BILLS IN PROGRESS Bill # To is Local Impact AB 10 Income Taxes: Credits low- Increases state low income tax housing credit 9LIHTC income housing Program b $500,000,000 AB 11 Community Redevelopment Law Reinvents redevelopment for affordable housing and of 2019 infrastructure Could be beneficial if local affordable housing and infrastructure agency is established AB 68 Land Use — Accessory Dwelling Requires reduction in impact fees for ADUs, including no Units impact fees for ADUs less than 750 square feet and reduced impact fees for ADUs over 750 square feet to be 25% of single-family homes. Additional oversight by the Department of Housing and Community Development for local ADU ordinances. AB 881 Accessory Dwelling Units Eliminates requirement that a homeowner use a house as a "primary residence" to qualify for construction of a new ADU AB 1482 Rent Cas Limits annual rent increase to a maximum of 10% AB 1483 Housing Data — Collection and Allows the state to demand specified information Reporting "regarding housing development within the jurisdiction" in a city's annual Housing Element report to help Sacramento tailor housing legislation AB 1484 Mitigation Fee Act — Housing No significant impact to Petaluma. Impact fees are Development already available on the City's website and are updated regularly with annual increases and periodic amendments AB 1485 Housing Development - Builds on SB 35 but gives developers a choice to provide Streamlining units at the moderate income level at higher percentage of units AB 1486 Surplus Land Expands the definition of "surplus land" owned by public agencies and makes it easier for housing developments on those sites AB 1487 Housing Alliance for the Bay Establishes a "regional housing agency" with the Area mandate to "increase affordable housing in the SF Bay Area" and authorizes the entity to raise new revenue using special taxes, commercial linkage fees and bonds by placing funding measures on the ballot in the bay area counties. Legislation came out of the Casa Compact. SB 6 Residential Development — Creates a data base of "all local lands suitable and Available Land available for residential development as identified by local governments and inclusion state surplus properties" SB 5 Affordable Housing and Would reinvent redevelopment for affordable housing Community Development and infrastructure Investment Program Could be beneficial if local affordable housing and infrastructure agency is established 1-1 ATTACHMENT 1 SB 13 This is not an exhaustive summazy of all CA bills, ofwhich Accessory Dwelling Units Requires reduction in impact fees for ADUs, including no impact fees for ADUs less than 750 square feet and reduced impact fees for ADUs over 750 square feet to be 25% of single-family homes. Additional oversight by the Department of Housing and Community Development for local ADU ordinances. SB 18 Keep Californians Housing Act Recently passed. Eliminates sunset clause of the current bill which was set to terminate at end of 2019, Requires landlords to give tenants 90 days written notice when the owner loses ownership of the residential rental property through foreclosure. SB 330 Housing Crisis of 2019 Limits local control over planning processes and impact fees. there are, currently more than 200. .2019 �.i111101�i11i1 ii011Slllg ACCESSORYUWEILINGUNiTS 1,e€ ,dation 111g1111g11tS SOMAU68d76AD69 AU Slmphf r pnxess of approvab it% ofApril it, •2019 13-Alandaliawwmraefsouottoadd AA t Accessory U»r11inR Unite FAST14R APPROVAL S I Ilnnnatd-+ All 14111 lh+dnpmrnl Iris paldi+hni ansi conKant throughmrt proirct approval prams. A8 1185 i AB 1706 Incrntnes and ta.lrz ap ttu+deratP Income haust prevailing lunfon) wage sB so UPZONING llpunMg near ksM. gwd xh.x+lt. and Inas%transit. 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Cmu{fawktns rrliirm, allows cities to real toMrul houses, condos• and new WOW after 10 years. -- - Stephrs public land for altordahlehousitut4- SU SZ9 ProtrcUuns (nr tenant erg.rniring CC•BY Alfred Twu TENANT PROTECTIONS mall�li ntcul turol.cont mon details tat tltryurl.trom/20196auslBgbllls AU eel Suuwlde fust Caase limes to ev{nkws. i 7;7T 1`7 7tT:1 1i A8 725 Limits se of %Prowl as xray to meet hrstalr g planning g tali o g limit to annwl rent 53 _ Increases AB t 110 I,nsigrr notice rrquued kir rent incrraie%: 60 days for ONder 1016, 90 days for 10 15%,120 days for 1594• u to FUNDING F\land. LrmIncroror Ilnating Tax L'rxstu funding program by 5500 mlfhon Pet yror. AU IIA595 Cerates rase local funding agmcir t Mr al/wdable hunsinL intnatructure, and community MNest sent - 3 As 11 AB 10 585 AB -' ��1 DATA 1483 A81483 I' creates ninviang AU 7Z4 production dauluse Creates rental housing database c to prate Public Banks. AU 1487 CmNss It Ing Alliance We the 01 Uap Area, regtanal entity to at WiseS15billion %iaballot measure for affords dile housing. 57118 funds for k•gai aid and rens as%htancr LEGALAID SU 319 �} Requires landlords to accept Section B vouchers. AU 437 MOVE•IN ASSISTANCE Mrndn loon• Inc >ca unty deposit and first rnomh's rent. AU S3 Ban the Box: no questions on criminal record on Initial rental applicidlia" Contact your representatives P fi ndyoutrep.legislaturc.ca.gov 1-2 ATTACHMENT 2 IZO SECTION 3.040 (INCLUSIONARY HOUSING 3.040 —Inclusionary Housing This section shall govern inclusionary housing as part of residential development pursuant to Housing Element Policy 4.2 and associated Program 4.3. A. .Applicability. The provisions of this section shall apply to all residential projects of five or more units, including residential components of mixed-use projects. B. Requirements. All residential projects of five or more units shall comply with the following requirements: 1. Location. Unless otherwise permitted in accordance with this section, inclusionary housing units shall be provided on the site of the residential development. 2. Quantity. The number of onsite inclusionary housing units shall be equal to or greater than 15 percent of the total number of residential units or lots in the residential project. 3. Income Levels. The following income restrictions shall apply based on the ownership structure of the residential project. a. Inclusionary housing units in a rental project shall be made affordable to very low and low income households as follows: 7.5% of the total number of residential units or lots in the residential project shall be affordable to very low income households and 7.5% of the total number of residential units or lots in the residential project shall be affordable to low income households. b. Inclusionary housing units in an ownership project shall be made affordable to low and moderate income households as follows: 7.5% of the total number of residential units or lots in the residential project shall be affordable to low income households and 7.5% of the total number of residential units or lots in the residential project shall be affordable to moderate income households. 4. Duration. Affordable units required pursuant to this section shall be made subject to affordability covenants that are binding on owners of the units and their successors for a duration of at least 55 years in the case of rental projects and for a duration of at least 45 years in the case of ownership projects. 5. Fractional Units. In determining the number of inclusionary units required to be provided pursuant to this section, fractional units shall be rounded up to the nearest whole integer. For fractions less than 0.5 the number shall be rounded down and the fractional unit shall be paid by applicable in -lieu fee. For fractions 0.5 or greater, the number shall be rounded up to the nearest whole integer to provide onsite units. For example, in the case of a 20 unit residential rental project, provision (13)(3)(a) would require making 7.5% or 1.5 of the units affordable to very low income households, and 7.5% or 1.5 of the units affordable to low income households. In this example, the inclusionary unit obligation for the project would be rounded up to 2 units affordable to very low income households and 2 units affordable to low income households. C. Inclusionary unit development standards. In addition to other development standards and requirements set forth in this ordinance and other applicable laws and regulations, all inclusionary housing units shall be consistent with the following standards: 1. Inclusionary units shall be constructed and occupied concurrently with or prior to the construction and occupancy of the market rate residential units in the project, unless an alternative schedule based on extenuating circumstances is adopted as part of the project approval. In phased projects inclusionary units shall be constructed and occupied in proportion to the number of units in each phase of the project. 2. Inclusionary units shall be distributed throughout the residential project site, to the fullest extent practicable. 2-1 ATTACHMENT 2 3. The design, appearance and general quality of the affordable units shall be comparable and compatible with the design of the market rate units as determined through the Site Plan and Architectural Review process, provided that all other zoning and building codes are met. D. Alternative Compliance. At the sole discretion of the City Council, a project's inclusionary housing requirement maybe met through alternative compliance in one of the following ways or a combination thereof: 1. Donation of a portion of the project site or an off-site property to the City or anon -profit organization deemed acceptable by the City for development of affordable housing; or 2. Payment of a housing in -lieu fee established by the City's adopted fee schedule; or 3. Alternative mixture of units by income levels; or 4, Use of an alternative method, such as provision of a smaller percentage of onsite inclusionary units coupled with payment of in-Ifeu fee for the inclusionary units not provided. E. Submittal Requirements. All applications submitted to the City for development of a residential project of five or more units or a mixed-use project including a residential component of five or more units shall include the proposed method of satisfying the requirements of this section. Compliance with the inclusionary housing requirements shall be reviewed as part of the development review process and presented to the decision making body as part of the overall project analysis for consistency with both the City's General Plan and this section. Submittal requirements to demonstrate compliance with this section shall include the following: 1. Total number of residential units in the project 2. Number of onsite inclusionary units 3. Proposed sale price of both market rate and inclusionary units and/or proposed rental price for both market rate and inclusionary units 4. Location of onsite inclusionary units within the project 5. Size and bedroom count for the proposed inclusionary units 6. Should the applicant wish to request alternative compliance from the City Council, the application shall include the request and describe the method and details of proposed alternative for compliance. In considering requests from a developer for alternative compliance to creating inclusionary affordable units, the City Council's consideration will include whether creating inclusionary affordable units would render the overall project financially infeasible under then current economic conditions. To that end, the developer may, at its option and at its own expense, provide its project financial information to an independent third -party housing/real estate analyst retained by the City to conduct a financial feasibility analysis. The independent analysis will be conducted utilizing the applicant's data, and any additional information that may be required of the developer to complete a thorough assessment. The independent analyst shall employ recognized best practices for the industry and render a detailed recommendation to the City Council to support its conclusions. Any of the developer's sensitive proprietary information shall be redacted before making the report public to the extent permitted by law. 2-2 0 v*9 ry q _ a 43 O `o c o o c `o o u m al w LL° >>> Q .SR. E �m E �m E> x.00 -i uni .p -in °' uuu" 7,�3 1. O 3 0 `"�'yO u .-�O •-LLM N O O w w w w d V A Y Y Y U Y d 412 x .,`7 17. E g E � C5. •_ m .-� � w 0 0 0 c c c u c c u, o w `w m mo -° •N O O v •3 0 v '3 0 �� w-� c w ;� a u o EE EOv Eo o w1'� S o `w °^n z `o `o a2 aC c o o t;; V. 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W O�> Y w >_aQ�Ix W z� C C Q j O Q j \ N Q W Z 4 O¢ N> aoo �a o Faso Q`cc G ��goo Jo �W j tJ F=- W O 9 Q Z O Z ATTACHMENT 4 City of Petaluma, CA DevelopmentImpact Capacity A July 201 9 City of Petaluma City Manager's Office I I English Street Petaluma, CA 94952 Web Page http://www,ci.petaluma.Ca.U5 Revision Date: July 1, 2019 ATTACHMENT 4 DEVELOPMENT & CAPACITY FEES This booklet is a collection of general descriptions of development and capacity 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, cost recovery services, etc.). Included are descriptions of the following fees: • City Facilities Development Impact Fee • Commercial Development Housing Linkage Fee • In -Lieu for Provision of Low Income Housing • Open Space Acquisition Fee • Park Land Acquisition Fee (Quimby and Non -Quimby Act Projects) • Park Land Development Impact Fee • Public Art In -Lieu Fee • Storm Drain Impact Fee • Traffic Development Impact Fee • Wastewater Capacity Fee • Water Capacity Fee • Central Petaluma Specific Plan Fee • School Facilities Applicants should be aware that all fees are subject to change by Council action as well as annual adjustments. Current fees should always be confirmed. For further information, contact the Community Development Depart ment, 11 English Street, Petaluma, California 94952; phone (707) 778-4301; E-mail cdd@ci.petaluma.ca.us ATTACHMENT 4 City Facilities Development Impact Fee Amount of Fee The amount of the fee is based on the following schedule. CITY FACILITIES DEVELOPMENT IMPACT FEE . Land Use Type Fee Unit of Measurement Single Family Residential $6,376 Unit Multifamily Residential $4,292 Unit Accessory Dwelling $2,187 Unit Commercial $1,207 1,000 sq ft of building space Office $1,153 1,000 sq ft of building space Industrial $735 1,000 sq ft of building space The amount of the Fee for Mixed Use Development shall be the sum of the following, as applicable: 1. The applicable amount per unit, pursuant to the above schedule,. for each residential development within a Mixed Use Development. 2. The applicable amount per 1,000 square feet of Development, pursuant to the above schedule, for each nonresidential Development or portion of such Development within a Mixed Use Development. 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 amore 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. Any development on any parcel any portion of which is located within one half -mile of any port ion 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. Time for Fee Payment 1. 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. 2. The Fee shall be charged an d paid for each non-residential development upon issuance of the building permit for such non-residential development. 3. If a mixed use development includes residential and non-residential development, the Fee as to the residential portion of the mixed development shall be paid upon the earlier of the date of ATTACHMENT 4 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 use development shall be paid upon issuance of the building permit for such non-residential portion. Inapplicability of Fee The Fee shall not apply to the following: 1. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a single family residential unit or another unit is added to an existing multi -family residential unit. 2. 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 shall not apply if the replacement or reconstruction increases the square footage of the structure by 50 percent (50%) or more. 3. 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. 4. Any addition to an existing non-residential structure of 500 square feet or less. 5. 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. 6. 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. 7. The City Council, in its discretion, may determine that the Fee is inapplicable to cert ain development constructed or to be constructed by a public entity on land having an appropriate General Plan land use designation provided that the City Council finds that such inapplicability is in the interest of the public health, safety and/or welfare, for reasons specified in the findings. Such reasons may include, but are not limited to, that the Fee as it would apply to such development by a public entity will be sufficiently recovered in whole or in part from residential development, the residents of which may constitute the primary users of the public entity development. Purpose The Purpose of the City Facilities Development Impact Fee is to provide funds for the construction and implementation of improvements to current community facilities to accommodate the needs generated by future development including: ATTACHMENT 4 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; 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. The Facilities, which are specifically described in Chapter III and Appendices A through O of the Mitigation Fee Act Nexus Report & Quimby Act In -Lieu Fee Report (Municipal Resource Group, August 2012), include the following: • Construct City Hall • Construct corporation yard facilities • Install VOIP system • Purchase Public Works, Parks, and administrative pool vehicles • Purchase technology equipment • Relocate and construct Fire Station #1 • Refurbish Fire Station #2 and Fire Station #3 • Purchase Advanced Life Support (ALS) ambulance • Purchase firefighter protective gear • Construct Police Station • Install communications tower • Purchase police officer equipment • Purchase patrol vehicles • Construct aquatic facility • Expand library facility • Expand community center facility Annual Economic Adjustment The City Facilities Development Impact Fee will escalate or decrease annually by the same percentage as 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. The adjustment will take effect on each July 1 Ste Municipal Code Chapter 19.04 Resolution 2014-036 N.C.S. ATTACHMENT 4 Commercial Development Housing Linkage Fee Amount of Fee The amount of fee is based on the following schedule. Application and Calculation of Fee a. Payment of Fees Required. Every person constructing or causing to be constructed within the city nonresidential development projects and/or expanded nonresidential development projects shall pay to the city a fee computed as set out above. b. Determination of Land Uses. For the purposes of this fee, nonresidential land uses shall be divided into three classifications: commercial, retail, and industrial. When necessary, the Director of Community Development or such other person as may be designated by the City Manager shall determine the land use classification that most accurately describes the nonresidential development, or in the case of mixed use developments, the portion thereof, for the purposes of determining the fee to be imposed. c. Time of Collection. Such fees shall be due and payable prior to issuance of a building permit. Inapplicability of Fee The Fee shall not apply to public facilities, public and private schools, and churches. Purpose Monies collected shall be used in accordance with and in support of activities to implement the city's adopted housing element, consolidated plan, and implementation plan. Activities shall be limited to direct expenditures for the development of affordable housing as defined herein or incidental non -capital expenditures related to such projects, including but not limited to land acquisition, applicable predevelopment costs, construction, rehabilitation, subsidization, counseling or assistance to other governmental entities, private organizations or individuals to expand affordable housing opportunities to low- and moderate -income households, and ongoing administration and maintenance of the Commercial Development Housing Linkage Fee program, including expenditures for the cost of studies, legal costs, and other costs of administering, maintaining and updating the program. Monies in the fund may be disbursed, hypothecated, collateralized, or otherwise employed for these purposes from time to time as the city council so determines is appropriate to accomplish the purposes of the affordable housing fund. These uses include, but are not limited to, assistance to housing development corporations, equity participation loans, grants, predevelopment loan funds; participation leases, loans to develop affordable housing or other public/private partnership arrangements. The affordable housing funds may be expended for the benefit of both rental and owner -occupied housing. COMMERCIAL DEVELOPMENT HOUSING LINKAGE FEE Land Use Type Fee Unit of Measurement Commercial $2.89 square foot of building space Retail $5.00 square foot of building space Industrial $2.98 square foot of building space Application and Calculation of Fee a. Payment of Fees Required. Every person constructing or causing to be constructed within the city nonresidential development projects and/or expanded nonresidential development projects shall pay to the city a fee computed as set out above. b. Determination of Land Uses. For the purposes of this fee, nonresidential land uses shall be divided into three classifications: commercial, retail, and industrial. When necessary, the Director of Community Development or such other person as may be designated by the City Manager shall determine the land use classification that most accurately describes the nonresidential development, or in the case of mixed use developments, the portion thereof, for the purposes of determining the fee to be imposed. c. Time of Collection. Such fees shall be due and payable prior to issuance of a building permit. Inapplicability of Fee The Fee shall not apply to public facilities, public and private schools, and churches. Purpose Monies collected shall be used in accordance with and in support of activities to implement the city's adopted housing element, consolidated plan, and implementation plan. Activities shall be limited to direct expenditures for the development of affordable housing as defined herein or incidental non -capital expenditures related to such projects, including but not limited to land acquisition, applicable predevelopment costs, construction, rehabilitation, subsidization, counseling or assistance to other governmental entities, private organizations or individuals to expand affordable housing opportunities to low- and moderate -income households, and ongoing administration and maintenance of the Commercial Development Housing Linkage Fee program, including expenditures for the cost of studies, legal costs, and other costs of administering, maintaining and updating the program. Monies in the fund may be disbursed, hypothecated, collateralized, or otherwise employed for these purposes from time to time as the city council so determines is appropriate to accomplish the purposes of the affordable housing fund. These uses include, but are not limited to, assistance to housing development corporations, equity participation loans, grants, predevelopment loan funds; participation leases, loans to develop affordable housing or other public/private partnership arrangements. The affordable housing funds may be expended for the benefit of both rental and owner -occupied housing. ATTACHMENT 4 Annual Economic Adjustment The Commercial Development Housing Linkage Fee will escalate or decrease annually by the same percentage as 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. The adjustment will take effect on each July 1 st. Municipal Code Chapter 19.36 Resolution 2011-071 N.C.S. Resolution 2018-130 N.C.S. ATTACHMENT 4 Open Space Acquisition Fee Amount of Fee The amount of fee is based on the following schedule. OPEN SPACE ACQUISITION FEE Land Use Type Fee Unit of Measurement Single Family Residential $448 Unit Multifamily Residential $301 Unit Accessory Dwelling $154 Unit Commercial $86 1,000 sq ft of building space Office $82 1,000 sq ft of building space Industrial $52 1,000 sq ft of building space The amount of the Fee for Mixed Use Development shall be the sum of the following, as applicable: 1. The applicable amount per unit, pursuant to the above schedule, for each residential development within a Mixed Use Development, 2. The applicable amount per 1,000 square feet of Development, pursuant to the above schedule, for each nonresidential Development or portion of such Development within a Mixed Use Development. 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 amore 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. Any development on any parcel any portion of which is located within one half -mile of an y 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. Time for Fee Payment 1. 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. 2. The Fee shall be charged an d paid for each non-residential development upon issuance of the building permit for such non-residential development. 3. If a mixed use development includes residential and non-residential development, the Fee as to the residential portion of the mixed development shall be paid upon the earlier of the date of ATTACHMENT 4 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 use development shall be paid upon issuance of the building permit for such non-residential portion. InanplicabiliLL of Fee The Fee shall not apply to the following: 1. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a single family residential unit or another unit is added to an existing multi -family residential unit. 2. 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. 3. 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. 4. Any addition to an existing non-residential structure of 500 square feet or less. 5. Any public orquasi-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. 6. 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 provided that the City Council finds that such inapplicability is in the interest of the public health, safety and/or welfare, for reasons specified in the findings. Such reasons may include, but are not limited to, that the Fee as it would apply to such development by a public entity will be sufficiently recovered in whole or in part from residential development, the residents of which may constitute the primary users of the public entity development. Purpose The Purpose of the Open Space Land Acquisition Fee is to provide funding to achieve the City's goal of maintaining existing service levels and to provide adequate open space amenities for Petaluma residents and employees as established in the General Plan and to accommodate the needs generated by future development including: ATTACHMENT 4 a. To pay for design, engineering, right -of --way or land acquisition and construction and/ 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; 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. The Facilities, which are specifically described in Chapter VII and Appendix T of the Mitigation Fee Act Nexus Report & Quimby Act In -Lieu Fee Report (Municipal Resource Group, August 2012), include the following: • Acquisition of 14.07 acres of open space land Annual Economic Adjustment The Open Space Acquisition Fee will escalate or decrease annually by the same percentage as 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. The adjustment will take effect on each July 1 st. Municipal Code Chapter 19.08 Resolution 2014-039 N.C.S. ATTACHMENT 4 Park Land Acquisition Fee (Quimby and Non -Quimby Act Projects) Amount of Fee The amount of fee is based on the following schedule. PARK LAND ACQUISITION FEE Land Use Type Fee Unit of Measurement Single Family Residential $1,908 Unit Multifamily Residential $1,291 Unit Accessory Dwelling $654 Unit Commercial $362 1,000 sq ft of building space Office $345 1,000 sq ft of building space Industrial $220 1,000 sq ft of building space The amount of the Fee for Mixed Use Development shall be the sum of the following, as applicable: 1. The applicable amount per unit, pursuant to the above schedule, for each residential development within a Mixed Use Development. 2. The applicable amount per 1,000 square feet of Development, pursuant to the above schedule, for each nonresidential Development or portion of such Development within a Mixed Use Development. 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 amore 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. Any development on any parcel any portion of which is located within one half -mile of any port ion 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. Time for Fee Payment 1. 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. 2. The Fee shall be charged an d paid for each non-residential development upon issuance of the building permit for such non-residential development. 3. If a mixed use development includes residential and non-residential development, the Fee as to the residential portion of the mixed development shall be paid upon the earlier of the date of ATTACHMENT 4 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 use development shall be paid upon issuance of the building permit for such non-residential portion. Inapplicability of Fee The Fee shall not apply to the following: 1. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a single family residential unit or another unit is added to an existing multi -family residential unit. 2. 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. 3. Any replacement or reconstruction of an existing note -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. 4. Any addition to an existing non-residential structure of 500 square feet or less. 5. Any public or quasi -public development on lands designated Public/Semi-Public or Education on the General Plan an 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. 6. 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. 7. 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 provided that the City Council finds that such inapplicability is in the interest of the public health, safety and/or welfare, for reasons specified in the findings. Such reasons may include, but are not limited to, that the Fee as it would apply to such development by a public entity will be sufficiently recovered in whole or in part from residential development, the residents of which may constitute the primary users of the public entity development. Purpose The Purpose of the Park Land Acquisition Fee is to provide funding to achieve the City's goal of maintaining existing service levels and to provide adequate park land for Petaluma residents and employees ATTACHMENT 4 as established in the General Plan and to accommodate the needs generated by future development including: a. To pay for design, engineering, right -of --way or all 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; 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. The Facilities, which are specifically described in Chapter VII and Appendix T of the Mitigation Fee Act Nexus Report & Quimby Act In -Lieu Fee Report (Municipal Resource Group, August 2012), include the following: • Acquisition of 103 acres of park land. Annual Economic Adjustment The Park Land Acquisition Fee will escalate or decrease annually by the same percentage as 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. The adjustment will take effect on each July 1st. Municipal Code Chapter 20.34 (Quimby Act) Municipal Code Chapter 19.12 (Non -Quimby Act) Resolution 2014-038 N.C.S. (Non -Quimby Act) ATTACHMENT 4 Park Land Development Impact Fee Amount of Fee The amount of fee is based on the following schedule. PARK LAND DEVELOPMENT IMPACT FEE Land Use Type Fee Unit of Measurement Single Family Residential $6,309 Unit Multifamily Residential $4,248 Unit Accessory Dwelling $2,163 Unit Commercial $1,195 1,000 sq ft of building space Office $1,143 1,000 sq ft of building space Industrial $728 1,000 sq ft of building space The amount of the Fee for Mixed Use Development shall be the sum of the following, as applicable: 1. The applicable amount per unit, pursuant to the above schedule, for each residential development within a Mixed Use Development, 2. The applicable amount per 1.,000 square feet of Development, pursuant to the above schedule, for each nonresidential Development or portion of such Development within a Mixed Use Development. 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. Any development on any parcel any portion of which is located within one half -mile of any port ion of a parcel idened 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. ATTACHMENT 4 Time for Fee Payment 1. 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. 2. The Fee shall be charged and paid for each non-residential development upon issuance of the building permit for such non-residential development. 3. If a mixed use development includes residential and non-residential development, 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 use development shall be paid upon issuance of the building permit for such non-residential portion. Inapplicability of Fee The Fee shall not apply to the following: 1. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a single family residential unit or another unit is added to an existing multi -family residential unit. 2. 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. 3. Any replacement or reconstruction of an existing non-residential structure that has been destroJ ed or demolished, if the bung 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. 4. Any addition to an existing non-residential structure of 500 square feet or less. 5. 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. 6. 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. ATTACHMENT 4 7. 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 provided that the City Council finds that such inapplicability is in the interest of the public health, safety and/or welfare, for reasons specified in the findings. Such reasons may include, but are not limited to, that the Fee as it would apply to such development by a public entity will be sufficiently recovered in whole or in part from residential development, the residents of which may constitute the primary users of the public entity development. Puraose The Purpose of the Park Land Development Fee is to provide funding for adequate community and neighborhood park facilities to meet the broad range of needs of Petaluma residents and employees as established in the General Plan to accommodate the needs generated by future development including: 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; 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. Facilities, which are specifically described in Chapter IV and Appendix Q of the Mitigation Fee Act Nexus Report &Quimby Act In -Lieu Fee Report (Municipal Resource Group, August 2012), include the following: • Construction of 43.63 acres of community parks • Construction of 29.01 acres of neighborhood parks Annual Economic Adjustment The Park Land Development Impact Fee will escalate or decrease annually by the same percentage as 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. The adjustment will take effect on each July 1st. Municipal Code Chapter 19.16 Resolution 2014-037 N.C.S. ATTACHMENT 4 Traffic Development Impact Fee Amount of Fee The amount of fee is based on the following schedule. TRAFFIC DEVELOPMENT IMPACT FEE Land Use Type Fee Unit of Measurement Single Family Residential $16,034 Unit Multifamily Residential $9,842 Unit Accessory Dwelling $4,445 Unit Senior Housing $4,285 Unit Office $21,178 1,000 sq ft of building space Hotel/Motel $6,316 Room Commercial/Shopping $30,981 1,000 sq ft of building space Industrial/Warehouse $12,541 1,000 sq ft of building space Education $1,578 Student Institution $6,497 1,000 sq ft of building space Gas/Service Station $51,865 Fuel Position The amount of the Fee for Mixed Use Development shall be the sum of the following, as applicable: 1. The applicable amount per unit, pursuant to the above schedule, for each residential development within a Mixed Use Development. 2. The applicable amount per 1,000 square feet of Development, pursuant to the above schedule, for each nonresidential Development or portion of such Development wn a Mixed Use Development. 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. Any development on any parcel any portion of which is located within one half -mile of any port ion 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. In accordance with Government Code section 66005.1, housing developments with common ownership and financing where not less than 50 percent of the floor space is for residential use and that satisfy all of the following characteristics will be eligible for a reduced Fee reflecting the lower rate of automobile trip generation associated with such developments, unless the City adopts findings after a public hearing ATTACHMENT 4 establishing that a housing development would not generate a lower rate of automobile trips than housing development that does not satisfy the requirements of this provision. • The housing development is located within 'h mile of a transit station as defined in Government Code section 65460.1, including planned transit stations whose construction is programmed to be completed prior to completion and occupancy of the housing development, and there is direct access between the housing development and the transit station along a barrier -free, walkable pathway not exceeding % mile in length); • Convenience retail uses, including a store that sells food, are located within''h mile of the housing development; • The housing development provides no more than the minimum number of parking spaces required by local ordinance, or not more than one onsite parking space for zero to two bedroom units, and two onsite parking spaces for three or more bedroom units, whichever is less. The reduced Fee, if any, applicable to housing developments that meet the requirements of this provision as determined by the City will be determined on a project -by -project basis. Any applicable reduced Fee amounts must be supported by a development -specific trip generation analysis acceptable to City staff that substantiates a lower trip generation rate for a housing development that meets the requirements of this provision as compared with housing developments that do not meet the requirements of this provision. Time for Fee Payment 1. 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. 2. The Fee shall be charged and paid for each non-residential development upon issuance of the building permit for such non-residential development. 3. If a mixed use development includes residential and non-residential development, 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 use development shall be paid upon issuance of the building permit for such non-residential portion. Inapplicability of Fee The Fee shall not apply to the following: 1. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a single family residential unit or another unit is added to an existing multi -family residential unit. 2. 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 ATTACHMENT 4 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. 3. 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. 4. Any addition to an existing non-residential structure of 500 square feet or less. 5. 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. 6. 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 provided that the City Council finds that such inapplicability is in the interest of the public health, safety and/or welfare, for reasons specified in the findings. Such reasons may include, but are not limited to, that the Fee as it would apply to such development by a public entity will be sufficiently recovered in whole or in part from residential development, the residents of which may constitute the primary users of the public entity development. Purpose The Purpose of the Traffic Development Impact Fee is to provide funding to achieve the City's goal of maintaining existing traffic service levels and to provide traffic facties to mitigate the traffic impacts of new development within the City, consistent with the land use and transportation polices of the General Plan, by developing an overall transportation system that will accommodate the City's expected future traffic demand and to accommodate the needs generated by future development including: 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. fr om 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 an y of the Facilities with prior City approval and have entered into an agreement; 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. ATTACHMENT 4 Facilities, which are specifically described in Table 3-3 of the Traffic Mitigation Fee Program Update (Fehr & Peers, August 2012) and Addendum 1 (City of Petaluma, May 2016), include the following: • Rainier Avenue Extension and Interchange (locally preferred alternative) • Caulfield Lane Extension • Old Redwood Highway Interchange Improvements • Caulfield Lane/Payran Street Intersection Improvements • Petaluma Boulevard/Magnolia Avenue/West Payran Street Intersection • Construction of New Intersections throughout the City • Traffic Signal Upgrades throughout the City • Pedestrian/Bicycle Improvements throughout the City • Transit Improvements throughout the City • Redevelopment Supplement • SMART Station Parking Annual Economic Adjustment The Traffic Development Impact Fee will escalate or decrease annually by the same percentage as 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. The adjustment will take effect on each July 1st. Municipal Code Chapter 19.24 Resolution 2016-076 N.C.S. Wastewater Capacity Fee Amount of Fee ATTACHMENT 4 The amount of the Fee is based on the following schedules for residential and nonresidential uses: WASTEWATER CAPACITY FEE Parameter Capacity Fee Single Family Residential $8,384 Multifamily Residential $5,551 Accessory Dwelling $3,085 Non -Residential Customers 0.063 Per gallon daily flow: $17.78 Per daily pound of BOD: $ 4,038 Per daily pound of TSS: $ 4,629 WASTEWATER CAPACITY FEE —:NONRESIDENTIAL Type of Business/Indust Unit Flow d BOD d TSS d Charge Auto repair Service bay 30 0.063 0.063 $1,076 Bakery 1,000 sq. ft 150 0.313 0.313 $5,380 Barber 1,000 sq. ft 40 0.083 0.083 $1,435 Bowling alley Alley 150 1 0.313 0.313 $5,380 Church 1,000 sq. ft 60 0.125 0.125 $2,152 Convalescent home Room 90 0.188 0.188 $3,228 Grocery w/ disposal 1,000 sq. ft 60 0.125 0.125 $2,152 Grocery w/o disposal 1,000 sq. ft 60 0.125 0.125 $2,152 Halls no food service 1,000 sq. ft 90 0.188 0.188 $3,228 Hospitals Bed 175 0.365 0.365 $6,275 Hotels & motels with restaurants Room 90 0.188 0.188 $3,228 Hotels and motels w/o restaurant Room 90 0.188 0.188 $3,228 Misc Comm/Industrial 1,000 sq. ft 60 0.125 0.125 $2,152 Mortuary 1,000 sq. ft 60 0.125 0.125 $2,152 Offices, medical and professional 1,000 sq. ft 60 1 0.125 0.125 $2,152 Restaurants 1,000 sq. ft 900 1.877 1.877 $32,272 Restaurants, fast food 1,000 sq. ft 570 1.188 1.188 $20,440 Retail 1,000 sq. ft 60 0.125 0.125 $2,152 School 100 students 560 1.168 1.168 $20,081 Service station Fuel pump 30 0.063 0.063 $1,076 Spas and health clubs Shower head 90 1 0.188 0.188 $3,228 Taverns/bars Seat 20 0.042 0.042 $717 Theater 1,000 sq. ft 90 0.188 0.188 $3,228 ATTACHMENT 4 Nonresidential Calculation Formula. The wastewater capacity fee for nonresidential users shall be based upon the daily flow, BOD and TSS of the wastewater being discharged, except the minimum fee shall be same for residential users. These three parameters shall be applied as outlined in the table above. Wherein, DF = Customer's Daily Flow (gallons per day) BOD = Customer's Daily Concentration of BOD (ppd) TSS = Customer's Daily Concentration of TSS (ppd) Loading Parameters. Values for DF, BOD and TSS shall be estimated using the above table. The "Type of Business/Industry" to be used as the basis for the calculation shall be as determined by the Director or his/her designee. Loading parameters for uses not listed in the table shall be as determined by the Director. Reconciliation. After connection, the City may, at the request of the Non -Residential User, monitor and track the customer's flow based on water use meter readings for a reconciliation period not to exceed one year. After the reconciliation period, the City may, upon request from the Non - Residential User, recalculate the capacity fee using the BOD and TSS values estimated in the table above and the actual average flows as monitored and recorded by the City. Reconciliation of Wastewater Capacity Fees for Qualifying Industrial Developments shall be in accordance with Resolution 2014-187 N.C.S. establishing administrative guidelines for payment of wastewater capacity fees for qualifying industrial development. o Difference Less Than or Equal to $250. If the difference between the recalculated capacity fee and Lite original capacity fee is less than or equal to $250, no reconciliation shall be made. o Difference of $251 or More. If the recalculated capacity fee exceeds the original capacity fee paid by $251 or more, the customer shall pay the total difference between the original capacity fee paid and the recalculated capacity fee. If the recalculated capacity fee is less than the original capacity fee paid by $251 or more, the City shall refund the total difference between the original capacity fee paid and the recalculated capacity fee. Capacity Fee on Rebuilding. Remodeling or Expansion of Existing Non -Residential User Facilities. In the event of any expansion, remodeling or rebuilding of any non-residential building, structure, or premises, currently connected to the wastewater system, in a manner which increases the loading parameters, an additional capacity fee shall be due. In no instance shall a refund be granted if the rebuilding, remodeling or expansion of a Non -Residential User facility decreases the size of the building or the loading parameters. The additional capacity fee for the expansion, remodeling or rebuilding of any non-residential building, structure, or premises, currently connected to the wastewater system, in a manner which increases the loading parameters, shall be calculated as follows: ATTACHMENT 4 Cr = NCF — OCF Wherein, ■ "ACF" is the additional capacity fee; ■ "NCF" is the new capacity fee with the values of the loading parameters (DF, BOD and TSS) to be determined based on the facility after the expansion, remodeling or rebuilding (note: this is not to be the incremental increase in loading — it is to represent the total loading of the facility); and ■ "OCF" is the old capacity fee calculated with the values of the loading parameters to be based on the facility prior to any expansion, remodeling or rebuilding. Industrial Relocation. This provision shall not be applied to a non-residential property or building that was formerly used for an industrial operation that has vacated the premises, relocated to a different parcel, and has received a relocation credit per the Allowance for Industrial Relocation Credit section below. Computation and Payment of Capacity Fees. 1. General. The Director or his/her designee shall compute all fees as set forth in the resolution. Payment for the capacity fees shall be made in full prior to connection to the wastewater utility, or discharge of wastewater from the facility if there is already a capacity to the wastewater utility. Payment of the capacity fees for Qualifying Industrial Developments shall be in accordance with the Resolution Establishing Administrative Guidelines for the Payment of Wastewater Capacity Fees: Resolution 2014487 N.C.S. 2. Mixed Use. Parcels that mix Residential Users and Non -Residential Users must be separately metered so Residential Users are served by a meters) that is separate from the meter(s) serving Non -Residential Users. Allowance for Industrial Relocation Credit. 1. Qualification for Industrial Relocation Credit A. Applicability. This section shall apply to Industrial Wastewater only, not to domestic wastewater. If the transfer of an industry discharging Industrial Wastewater to a different parcel of land does not impose any additional burden on the City's wastewater utility, a credit, which shall be referred to as a relocation credit, may be allowed, provided that: 1. Same Operation. Essentially the same industrial operation, as determined by the Director, has been transferred from one parcel to another and such operation was previously connected to the City's wastewater utility; 2. Ownership. The same person now making claim to the relocation credit owned the industrial operation prior to the transfer and will continue to own the industrial operation at the new location. ATTACHMENT 4 3. Abandonment. The owner has demonstrated to the satisfaction of the City that the industrial operation has been abandoned from the parcel from which the transfer has occurred, or presented a certification in writing that such industrial operation will be abandoned within six (6) months of the City approving an application for connection. Should the industrial operation not be abandoned within the prescribed period, the relocation credit shall be revoked and a capacity fee, with respect to the parcel to which the industrial operation transferred, shall be due and payable as of the date said parcel was connected to the City's wastewater utility. 4. Disconnection. The connection to the wastewater utility at the prior parcel has been disconnected and capped, the meter has been removed, and the account closed. Any subsequent use of the prior parcel requiring connection to the wastewater system will pay a new wastewater capacity fee in accordance with this resolution. 5. Capacity There is adequate capacity in the City's wastewater utility to accommodate connection of the industrial operation to be transferred. B. Basis for Relocation Credit. If the loading parameters (DF, BOD, TSS) for the industrial operation at its new location are equivalent to the loading parameters for the industrial operation at its prior location, no additional capacity fee shall be applied. If the loading parameters for the industrial operation at its new location will be increased over the loading parameters for the industrial operation at its prior location, then an additional capacity fee shall be calculated. Capacity Fees for Restaurants and Laundromats Using Best Available Technology. If a restaurant or Laundromat applies for a wastewater capacity fee and installs and continues to use the most water efficient hardware, fixtures, and systems (Best Available Technology) as determined by the Director, the wastewater capacity fee will be 50% less than the fee determined in the table. Time for Fee Payment 1. 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. 2. The Fee shall be charged and paid for each non-residential development upon issuance of the building permit for such non-residential development. 3. If a mixed use development includes residential and non-residential development, 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 use development shall be paid upon issuance of the building permit for such non-residential portion. ATTACHMENT 4 4. The fee shall be charged and paid in full for each industrial development upon issuance of the building permit for such development, or upon issuance of a new or revised industrial wastewater discharge permit, subject to applicable law. Alternatively, the fee for industrial development meeting specific criteria shall be as set forth in Resolution 2014487 N.C.S. Establishing Administrative Guidelines for Payment of Wastewater Capacity Fees for Qualifying Industrial Development. Purpose The Fee is calculated based on the relationship between the value of the City's existing wastewater facilities, and the value of upgrades and additional capacity needed to serve new users, and allocates to new wastewater system customers their fair share of the cost of existing and future wastewater improvements needed to serve the new customers. The Fee includes the buy -in component for existing facilities and projected capital expenditures that strictly benefit new customers, as described in detail in Appendix A of the Report (Water & Wastewater Capacity Charge Memo, Bartle Wells Associates, August 2012), as well as in the City's capital improvement plan. The Report establishes that wastewater system improvements are required, and justifies the changes in the wastewater capacity charge based on the amount required to "buy into" existing facilities and anticipated City capital expenditures. The Report explains how the capacity charges are calculated on the basis of capital costs related to the upgrades and expansion of the wastewater system required by the addition of future connections. The Fee is necessary to cover the City's cost of improvements required to serve anticipated future connections. Revenues and interest shall be used only for the Facilities and the purposes for which the Fee was collected, which are the following: a. To pay for acquisition of the Facilities; b. To pay for design, engineering, construction of and property acquisition for, and reasonable costs of outside consultant studies related to, the Facilities; c. To reimburse the City for the Facilities constructed by the City with funds fr om other sources including funds from other public enes, unless such funds were obtained from grants or gifts intended by the grantor to be used for the Facilities. d. To reimburse developers that have designed and constructed any of the Facilities with prior City approval and have entered into an agreement; and e. To pay for and/or reimburse costs of program development and ongoing administration and maintenance of the Fee program, including, but not limited to, the cost of studies, legal costs, and other costs of updating the Fee. Annual Economic Adjustment On July 1 st of each year the Was tewater Capacity Fee shall be adjusted to account for increases or decreases based on the Engineering News Record Construction Cost Index for the San Francisco area from December for the second prior calendar year to December for the prior calendar year. Municipal Code Chapter 15.72 Municipal Code Chapter 19.32 Resolution 2014-186 N.C.S. Resolution 2014487 N.C.S. Water Capacity Fee Amount of Fee ATTACHMENT 4 A Fee shall be levied for each new water meter connecting to the City water system according to the size of the meter as shown in the following table. Water Ca aci ':Fee Meter Size inches Fee % $4,082 1 (residential) $4,082 1 (nonresidential) $6,815 1 '/z $13,590 2 $21,752 3 $40,809 4 $68,029 6 $134,670 >6 Case by Case Basis Time for Fee Payment A Fee shall be charged and paid for each Development upon issuance of the building permit for such Development. Rebuilding, Remodeling or Expansion of Existing Non -Residential User Facilities In the event of any expansion, remodeling or rebuilding of any non-residential building, structure, or premises, currently connected to the water system, in a manner which increases the size of the meter, an additional Fee shall be due. In no instance shall a refund be granted if the rebuilding, remodeling or expansion of a Non-residential User facility decreases the size of the building or the meter. The additional Fee for the expansion, remodeling or rebuilding of any non-residential building,_ structure, or premises, currently connected to the water system, in a manner which increases the size of the meter shall be calculated as follows: ACF =NCF — OCF Wherein, • "ACF" is the additional Fee; • "NCF" is the new Fee with the size of the meter to be determined based on the facility after the expansion, remodeling or rebuilding; and • "OCF" is the old Fee calculated with the size of the meter used at the facility prior to any expansion, remodeling or rebuilding. Industrial Relocation This provision shall not be applied to anon -residential property or building that was formerly used for an industrial operation that has vacated the premises, relocated to a different parcel, and/or has received a relocation credit per the following: ATTACHMENT 4 Allowance for Industrial Relocation Credit a. AV12 1c bilitya This section shall apply to Industrial customers only. If the transfer of an industry, using water, to a different parcel of land does not impose any additional burden on the City's water utility, a credit, which shall be referred to as a relocation credit, may be allowed, provided that: i. Same Operation. Essentially the same industrial operation, as determined by the Director, has been transferred from one parcel to another and such operation was previously connected to the City's water utility; ii. Ownership. The same person now making claim to the relocation credit owned the industrial operation prior to the transfer and will continue to own the industrial operation at the new location. iii. Abandonment. The owner has demonstrated to the satisfaction of the City that the industrial operation has been abandoned from the parcel from which the transfer has occurred, or presented a certification in writing that such industrial operation will be abandoned within six (6) months of the City approving an application for connection. Should the industrial operation not be abandoned within the prescribed period, the relocation credit shall be revoked and a capacity fee, with respect to the parcel to which the industrial operation transferred, shall be due and payable as of the date said parcel was connected to the City's water utility. iv. Disconnection. The connection to the water utility at the prior parcel has been disconnected and capped, the meter has been removed, and the account closed. Any subsequent use of the prior parcel requiring connection to the water system will pay a new water capacity fee in accordance with this resolution. v. Capacity. There is adequate capacity in the City's water utility to accommodate connection of the industrial operation to be transferred. b. Basis for Relocation Credit. If the meter size for the industrial operation at its new location is equivalent to the meter size for the industrial operation at its prior location, no additional capacity fee shall be applied. If the meter size for the industrial operation at its new location will be increased over the meter size for the industrial operation at its prior location, then an additional capacity fee shall be calculated. Purpose The Fee is calculated based on the relationship between the value of the City's existing water facilities, and the value of upgrades and additional capacity needed to serve new users, and allocates to new water system customers their fair share of the cost of existing and future water improvements needed to serve the new customers. The Fee includes the buy -in component for existing facilities and projected capital expenditures that strictly benefit new customers, as described in the Report (Water & Wastewater Capacity Charge Memo, Bartle Wells Associates, August 2012), and the Urban Water Management Plan ("UWMP"), which plans are incorporated by reference, as well as in the City's capital improvement plan. The UWMP establishes that water system improvements are required, and justifies the changes in the water capacity charge based on the amount required to "buy into" existing facilities and anticipated City capital expenditures. The Report explains how the capacity charges are calculated on the basis of capital costs related to the upgrades and expansion of the water system required by the addition of future connections. ATTACHMENT 4 The Fee is necessary to cover the City's cost of improvements required to serve anticipated future connections. Revenues and interest shall be used only for the Facilities and the purposes for which the Fee was collected, which are the following: a. To pay for acquisition of the Facilities; b. To pay for programs, measures, design, engineering, construction of and property acquison for, and reasonable costs of outside consultant studies related to, the Facilities; c. To reimburse the City for the Facilities constructed by the City with funds from other sources including funds from other public entities, unless such funds were obtained from grants or gifts intended by the grantor to be used for the Facilities. d. To reimburse developers that have designed and constructed any of the Facilities with prior City approval and have entered into an agreement; and, e. To pay for and/or reimburse costs of program development .and ongoing administration and maintenance of the Fee program, including, but not limited to, the cost of studies, legal costs, and other costs of updating the Fee. Annual Economic Adjustment On July 1St of each year commencing on July 1, 2014, the Water Capacity Fee shall be adjusted to account for increases or decreases based on the Engineering News Record Construction Cost Index for the San Francisco area from December for the second prior calendar year to December for the prior calendar year. Municipal Code Chapter 15.08 Municipal Code Chapter 19.28 Resolution 2012-126 N.C.S. ATTACHMENT 4 IN -LIEU CONTRIBUTIONS FOR PROVISION OF VERY LOW, LOW, AND MODERATE -INCOME HOUSING Purpose As outlined in Section 3.040 of the Implementing Zoning Ordinance, all residential projects of five or more units, including residential components of mixed-use projects is required to provide 15% onsite inclusionary housing units. Payment of affordable housing in -lieu fees is permitted for fractional units less than 0.5 (3.040.B.5) or as alternative compliance if approved by the City Council (3.040.D). The City's inclusionary housing ordinance as outlined in IZO Section 3.040, provides for developers to comply with Program 4.3 of the 2015-2023 Housing Element of the Petaluma General Plan 2025, which states: Continue to require residential projects of five or more units to contribute to the provision of affordable housing in one of the following ways: Require developers of residential projects, both homeownership and rentals, of five or more units to provide 15% of the units onsite for use as affordable housing with affordability restrictions of at least a 45 year duration for homeownership developments and affordability restrictions for of at least a 55 year duration for rental developments. Subject to approval by the City Council, developers may fulfill their inclusionary requirement by one of the following ways: • Donate a portion of the project site or property to the City or anon -profit organization for use as affordable housing. • The developer may make an in4ieu payment to the City's Housing Fund in an amount equal to a 20% inclusionary requirement. • Use alternative methods, such as requesting a smaller percentage of on-site units, or donating a separate parcel of land to build affordable housing to meet the intent of the inclusionary requirement 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. Projects deemed complete prior to January 15 2019 shall be subject to the inclusionary requirements and fees in effect prior to adoption of Ordinance No. 2664 N.C.S. and Resolution No. 2018-142 N.C.S. Time of Payment In -lieu fees shall be collected on behalf of the City of Petaluma at the time the escrow is closed on for -sale homes and at time of final inspection and issuance of a certificate of occupancy for multi -family. properties. A recorded agreement establishes terms of payment. Amount of Fee The amount of the fee is $10.12/square foot. Resolution 2003-241 N.C.S. Resolution 2018-142 N.C.S. Ordinance 2663 N.C.S. Purpose ATTACHMENT 4 In September 1982, the Petaluma City Council established the Storm Drainage Impact Fee 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. 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 Fee Runoff Computation: The increase in runoff created by a given project is calculated fora 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 aper -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 Chapter 17.30 Ordinance No. 1530 N.C.S., Ordinance No. 1547 N.C.S. Resolution No. 9564 N.C.S., Resolution No. 9565 N.C.S., Resolution No. 9751 N.C.S. Public Art Fee ATTACHMENT 4 A. The purpose of this chapter is to require the integration of public art into private and public development projects, and to authorize the establishment of guidelines, procedures and standards for the integration of public art into such development projects. B. Public art helps make cities more livable and more visually stimulating. The experience of public art makes the public areas of buildings and their grounds more welcoming. It creates a deeper interaction with the places people visit, and in which people work and live. Public art illuminates the history of a community while it points to the city's aspirations for the future. A city rich in art encourages cultural tourism which brings in visitor revenues. C. To achieve these goals, public art planning should be integrated into development project planning at the earliest possible stage, and artists selected should become a member of a development project's design team early in the design process. Applicability The provisions of this chapter apply to all public construction projects and non-residential private construction projects with a construction cost of $500,000 or more, (including private mixed-use construction projects that include residential development, as long as the non-residential development in the mixed-use project has a construction cost of $500,000 or more), that will be constructed in any of the zoning districts specified in section 18.070, except those construction projects that are exempt from the requirements of this chapter in accordance with section 18.060. Calculation of Fee Public Art provided in accordance with this chapter must have a public art cost of not less than one percent of the construction cost for a private or public construction project subj ect to this chapter, except as provided in this section. The public art in lieu fee that applies to private or public construction projects subject to his chapter shall be equal to one percent of the construction cost for the private or public construction project. If public art proposed for a private or public construction project subject to this chapter has a public art cost of less than one percent of the construction cost, and the public art otherwise meets the requirements of this chapter, the developer and/or owner of the private or public construction project must pay a public art in lieu fee equal to the difference between the public art cost and one percent of the construction cost. Exemptions from Fee The requirements of this chapter do not apply to the following: A. Underground public works projects; B. Street or sidewalk repair, construction, or reconstruction; C. Tree planting; 18-3 Ordinance No. 2300 N.C.S. D. Remodeling, repair or reconstruction of structures which have been damaged by fire, flood, wind, earthquake or other calamity; E. Affordable housing construction, remodel, repair or reconstruction projects; F. Seismic retrofit projects as defined by Chapter 17.34 of the Petaluma Municipal Code; G. Construction, remodel, repair or reconstruction of structures owned and occupied by public -serving social service and non-profit agencies; ATTACHMENT 4 H. Utility pump stations and reservoirs; and I. Fire sprinkler installation projects as defined by Section 17.20.070 of the Petaluma Municipal Code For a complete description of the Public Art Ordinance, see Chapter I8 of the Implementing Zoning Ordinance, Ordinance No. 2468 N.C.S. ATTACHMENT 4 NOTE: The following fee is associated with development that occurs only within the Central Petaluma Specific Plan designated area: CENTRAL PETALUMA SPECIFIC PLAN FEE This fee will be charged to all applications requiring govermnental approvals subject to the provisions of the Central Petaluma Specific Plan and the adopted land use and development regulations (the "Smart Code"). The fee will be as follows: Per acre of land: $2,125.00 Said fee shall not apply to the following types of applications: • Tenant improvements within an existing structure when there is no accompanying change in use. • Adaptive reuse of a designated historic structure. Ordinance No. 2470 N.C.S. Resolution No. 2003-106 N.C.S. SCHOOL FACILITIES FEE Purpose ATTACHMENT 4 The purpose of the "School Faces Fee/Dedication Ordinance" is to provide a method for provng sites and/or financing interim school facilities necessitated by new residential developments causing conditions of overcrowding. Calculation of Fee The following is a list of districts collecting school facilities fees: District Phone Address Cinnabar Old Adobe Petaluma Waugh Time of Payment (707) 765-4345 286 Skillman Lane, Petaluma, CA 94952 (707) 765-4321 845 Crinella Drive, Petaluma, CA 94954 (707) 778-4813 200 Douglas Street, Petaluma, CA 94952 (707) 765-3331 1851 Hartman Lane, Petaluma, CA 94954 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. Municipal Code Chapter 17.28 Ordinance No. 1377 N.C.S. Ordinance No. 1512 N.C.S. Resolution No. 84465 N.C.S. Resolution No. 85483 N.C.S. Resolution No. 85-184 N.C.S. Resolution No. 87-7 N.C.S. Resolution No. 87-25 N.C.S. ATTACHMENT 4 ADMINISTRATION The following fee administration components are common to the majority of the resolutions, for additional detail consult the individual fee resolutions. Designation of Developments Nonresidential developments, other than Mixed Use Developments (but including non-residential developments within Mixed Use Developments) that are not within the definition of a use defined in the Fee resolutions 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, or his designee, shall assign such categories as consistently as possible with the definitions of such categories established pursuant to the resolutions 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. Credits and Reimbursement for Developer Constructed Facilities The City and a developer may enter into an improvement agreement to allow the developer to construct certain of the Facilities. Entering such an agreement is in the City's sole discretion. Such agreement shall provide for security for the developer's commitment to construct the Facilities and shall refer to this resolution for credit and reimbursement. If the City enters into such an agreement with a developer prior to construction of one or more of the Facilities, the City shall provide the developer a credit in accordance with the following: a. Credit Amount. The credit shall be in the amount of the lowest bid received for construction of the facility, as approved by the City Engineer. However, in no event shall a credit pursuant to this provision exceed the current facility cost. For the purposes of this section, such current facility cost shall be the amount listed in the Report for the particular facility, as subsequently adjusted pursuant to Sections 13 and 14 of this Resolution prior to issuance of the building permit for that facility. Once issued, credit pursuant to this section shall not be adjusted for inflation or any other factor. Credit provided pursuant to this section is not transferable. b. Application of Credit. Developers may apply credit given pursuant to this section against the Fee applicable to a part icular 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. ATTACHMENT 4 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. Periodic Review. a. During each fiscal year, the City Manager shall prepare a report for the City Council, pursuant to Government Code Section 66006, identifying the balance of Fee revenues in the Fee account. b. Pursuant to Government Code Section 66002, the City Council shall also review, as part of any adopted City Capital Improvement Plan each year, the approximate location, size, time of availability and estimates of cost for all Facilities to be financed with the Fee. The estimated costs shall be adjusted in accordance with appropriate indices of inflation. The City Council shall make findings identifying the purpose to which the existing Fee revenue balances are to be put and demonstrating a reasonable relationship between the Fee and the purpose for which it is charged. Subsequent Analysis and Revision of the Fee. The Fees are adopted and implemented by the City Council in reliance on the Record identified for each Fee. The City may continue to conduct further study and analysis to determine whether any 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.