HomeMy WebLinkAboutResolution 2022-182 N.C.S. 11/21/2022 DocuSign Envelope ID:7992BC11-F28B-451B-AF2F-68DD2EOC9EC5
Resolution No. 2022-182 N.C.S.
of the City of Petaluma, California
AMENDING RESOLUTION NOS. 2014-036 N.C.S. SETTING CITY FACILITIES
DEVELOPMENT IMPACT FEES, 2014-037 N.C.S. SETTING PARK LAND DEVELOPMENT
IMPACT FEES, 2014-038 N.C.S. SETTING NON-QUIMBY ACT PARK LAND ACQUISITION FEES,
2014-039 N.C.S. SETTING OPEN SPACE LAND ACQUISITION FEES,AND 2016-076 N.C.S.
SETTING TRAFFIC DEVELOPMENT IMPACT FEES, TO PROVIDE FOR NON-APPLICABILITY
OF THE FEES TO CERTAIN CITY-SUPPORTED AFFORDABLE HOUSING PROJECTS
WHEREAS,the City of Petaluma General Plan 2025 describes future land uses within the City of Petaluma
and applies to a planning area that includes the City and land outside the City in unincorporated Sonoma County
that must also be considered to property plan for the City's future; and
WHEREAS, an Environmental Impact Report (State Clearinghouse no. 2004082065) was prepared for the
City's General Plan pursuant to the California Environmental Quality Act or CEQA, and certified by the City
Council on April 7, 2008 by Resolution no. 2008-058 N.C.S.; and
WHEREAS,the City Council adopted Resolution no. 2008-085 N.C.S. approving the City's General Plan on
May 19, 2008; and
WHEREAS, the General Plan area is shown on the land use maps contained in the General Plan; and
WHEREAS, on May 19, 2008, the City Council adopted: Resolution no. 2008-086 N.C.S. updating the
Aquatic Center Facilities fee and superseding Resolution no. 2003-213 N.C.S.; Resolution no. 2008-087 N.C.S.
updating the Community Facilities fee and superseding Resolution no. 2003-208 N.C.S.; Resolution no. 2008-
088 updating the Fire Suppression Facilities fee and superseding Resolution no. 2003-207 N.C.S.; Resolution no.
2008-089 updating the Law Enforcement Facilities fee and superseding Resolution no. 2003-210 N.C.S.;
Resolution no. 2008-090 N.C.S. updating the Library Facilities fee and superseding Resolution no. 2003-211
N.C.S.; Resolution no. 2008-91 N.C.S. updating the Open Space Acquisition fee and superseding Resolution no.
2003-212 N.C.S.; Resolution no. 2008-92 N.C.S. updating the Parkland Acquisition fee for Non-Quimby Act
projects and superseding Resolution no. 2003-213; Resolution no 2008-93 N.C.S. updating the Parkland
Development fee and superseding Resolution no. 2003-212 N.C.S.; Resolution no. 2008-094 N.C.S. updating the
Public Facilities fee and superseding Resolution no. 2003-209 N.C.S., and Resolution no. 2008-095 N.C.S.
updating the Traffic Development fee and superseding Resolution no. 2003-206 N.C.S.; Resolution no. 2008-096
updating the Water Capacity fee and superseding Resolution no. 91-18 N.C.S.; and Resolution no. 2008-097
updating the Wastewater Capacity fee and superseding Resolution no. 2002-190 N.C.S; and
WHEREAS, the City's General Plan designates defined land uses for all property with the City and, based
on those uses, calculates the expected number of residents, residential units, employees and squared footage of
non-residential development that will result when all property in the City is developed as anticipated in the
General Plan; and
WHEREAS,the City's General Plan and its EIR analyze the impacts of development under the General Plan
and propose mitigation measures, including the creation of fee programs to require new development to pay for
its proportional fair share of the cost of acquiring and improving public facilities necessary to meet the demands
of new residents, employees, customers and businesses for such facilities; and
Resolution No. 2022-182 N.C.S. Page 1
DocuSign Envelope ID:7992BC1 1-F28B-451 B-AF2F-68DD2EOC9EC5
WHEREAS,the General Plan incorporates policies and programs to mitigate the impacts of such anticipated
new development, including policies that require new development to pay for the proportional fair share of the
cost of acquiring and improving public facilities,including community and neighborhood park improvements and
open space necessary to meet the demands of residents, employees, customers and businesses, and the resolutions
the City Council adopted on May 19, 2008 updating the City's development fees each cite to the General Plan
policies and programs that identify the need for public improvements and facilities to be funded by the City's
development fees, and also list improvements to be funded, as identified in the fee studies supporting each fee;
and
WHEREAS, on August 27, 2012,the City Council introduced Ordinance no. 2444 N.C.S. adding a new Title
19 entitled"Development Fees"to the Petaluma Municipal Code including new chapters with enabling legislation
providing for the City's City Facilities, Open Space Land Acquisition, Park Land Acquisition, Park Land
Development, and Traffic Development impact fees, and Water and Wastewater capacity fees, and a Commercial
Development Housing Linkage fee; and
WHEREAS, on August 27, 2012, the City Council adopted Resolution no. 2012-121 N.C.S. to update and
consolidate the City's Aquatic Center, Community Center, Fire Suppression, Law Enforcement, Library, and
Public Facilities impact fees into a single City Facilities Development Impact Fee and repealing and replacing
resolution nos. 2008-086 N.C.S., 2007-087 N.C.S., 2008-088 N.C.S., 2008-089 N.C.S., 2008-090 N.C.S., and
2008-094 N.C.S.; and
WHEREAS, also on August 27, 2012, the City Council adopted the following resolutions to replace the
development fee resolutions the City Council adopted on May 19,2008:Resolution no.2012-122 N.C.S.to update
the City's Park Land Development Impact Fee replacing Resolution no. 2008-093 N.C.S.; Resolution no. 2012-
123 N.C.S. updating the City's Open Space Land Acquisition Fee, replacing Resolution no. 2008-091 N.C.S.;
Resolution no. 2012-124 N.C.S. updating the City's Park Land Acquisition Fee for Non-Quimby Act
Development, replacing Resolution no. 2008-92 N.C.S.; Resolution no. 2012-125 N.C.S. updating the City's
Traffic Development Impact Fee, replacing Resolution no. 2008-095 N.C.S.; Resolution no. 2012-126 N.C.S.
updating the City's Water Capacity Fee and replacing Resolution no. 2008-096 N.C.S.; and Resolution no. 2012-
127 N.C.S. updating the City's Wastewater Capacity Fee replacing Resolution no. 2008-097 N.C.S.; and
WHEREAS, the resolutions the City Council adopted on August 27, 2012 were each supported by and
incorporated, as appropriate, studies of the impacts of anticipated future development on existing public facilities
and analyses of new facilities required by future development, including a report prepared by the Municipal
Resource Group dated August 14, 2012 and entitled "City of Petaluma Mitigation Fee Act Nexus Report and
Quimby Act In-Lieu Fee Report," a report prepared by Fehr and Peers dated August 15, 2012 and entitled"City
of Petaluma Traffic Mitigation Fee Program Update,"and a report prepared by Bartle Wells and Associates dated
August 15, 2012 and entitled"City of Petaluma Water and Wastewater Capacity Fee Memo;" and
WHEREAS,on March 3,2014,the City Council adopted amendments to the City's City Facilities,Park Land
Development, Park Land Acquisition, Open Space Land Acquisition, and Traffic Development Impact Fees, and
to the City's Wastewater Capacity Fee, to: harmonize definitions of single and multi-family residential
development in the fee resolutions with the supporting Municipal Resource Group study; provide a fee credit
based on prior uses for new residential and non-residential development within one half mile of parcels identified
as possible future SMART rail station sites;provide for refunds of traffic impact fees for public and quasi-public
development on parcels designated Public/semi-Public or Education; and to require payment of updated
Wastewater Capacity Fees in the event of operational changes of non-residential customers that are subject to
issuance of a new or revised industrial wastewater discharge permit, and, accordingly, the City Council adopted
Resolution no. 2014-036 N.C.S. to replace Resolution no. 2012-121 N.C.S. governing City Facilities
Development Impact Fees;Resolution no. 2014-037 N.C.S. to replace Resolution no. 2012-122 N.C.S. governing
Park Land Development Impact Fees; 2014-038 N.C.S. to replace Resolution no. 2012-124 N.C.S. governing
Resolution No. 2022-182 N.C.S. Page 2
DocuSign Envelope ID:7992BC1 1-F28B-451 B-AF2F-68DD2EOC9EC5
Park Land Acquisition Fees Resolution no.2014-039 N.C.S.to replace Resolution no.2012-123 N.C.S.governing
Open Space Land Acquisition fees; Resolution no.; Resolution no. 2014-040 N.C.S. to replace Resolution no.
2012-125 N.C.S. governing Traffic Development Impact Fees; and Resolution no. 2014- 041 N.C.S. to replace
Resolution no. 2012-127 N.C.S. governing Wastewater Capacity Fees; and
WHEREAS, on July 7, 2014, the City Council adopted a new Resolution no. 2014-112 N.C.S. to replace
Resolution no. 2014-040 governing the City's Traffic Development Impact Fees to create a new fee category for
gas/service stations and to reduce the $18.8 Million Redevelopment Supplement portion of the City's Traffic
Impact Fees by $8,836,001 to reflect the application of Tax Allocation Bond revenues in that amount to the Old
Redwood Highway Interchange project; and
WHEREAS, on December 7, 2015, the City Council adopted a new Resolution no. 2015-191 to replace
Resolution no. 2014-112 governing the City's Traffic Development Impact Fees to update the 2012 Fehr and
Peers report; to implement Government Code Section 66005.1 which requires reduced traffic impact fees for
housing developments with at least 50% of floor space devoted to residential use and that are located within %2
mile of a transit station and convenience retail, and with limited parking as specified; and to update the fee table
accordingly; and
WHEREAS,on May 16,2016,the City Council adopted a new Resolution no.2016-076 to replace Resolution
no.2015-191 governing the City's Traffic Development Impact Fees to update the traffic fee study to add funding
for SMART rail station infrastructure and Rainier cross town connector right of way costs; and
WHEREAS,Resolution nos. 2014-036 N.C.S governing the City's City Facilities Development Impact Fees,
2014-037 N.C.S. governing the City's Park Land Development Impact Fees, 2014-038 N.C.S. governing the
City's Park Land Acquisition Fee for Non-Quimby Act Development Projects, 2014-039 N.C.S. governing the
City's Open Space Land Acquisition Fee, and 2016-076 N.C.S. governing the City's Traffic Development Impact
Fees each include a Section 7 entitled"Inapplicability of Fee;" and
WHEREAS, Resolution nos. 2012-126 governing the City's Water Capacity Fees, and 2014-041 governing
the City's Wastewater Capacity fees do not include a Section entitled"Inapplicability of Fee" in order to ensure
that such fees needed to fund the City's Water and Wastewater utility enterprises adequately sustain the utility
enterprises without City General Fund subsidy, and in compliance with the requirements of Proposition 218, and
in particular, California Constitution Article XIIID, Section 6; and
WHEREAS, Resolution nos. 2014-036 N.C.S., 2014-037 N.C.S., 2014-038 N.C.S. each include a paragraph
(f) under Section 7 making the fee inapplicable to certain specified low and/or moderate income senior citizens
housing projects owned and developed by charitable non-profit organizations; and
WHEREAS, Resolution nos. 2014-039 N.C.S., and 2016-076 N.C.S. do not include a paragraph (f) under
Section 7 making the fee inapplicable to certain specified low and/or moderate income senior citizens housing
projects owned and developed by charitable non-profit organizations; and
WHEREAS, the City of Petaluma's 5th cycle Housing Element includes Goal 3 which states "minimize
constraints on housing development to expedite construction and lower development costs" and further includes
Program 3.4 which calls for the City to "continue to subsidize and defer application fees, development impacts
fees, and on and off site improvements for affordable housing projects;" and
WHEREAS,the City of Petaluma's 5th cycle Housing Element includes Policy 4.1 which states that"because
of the dissolution of redevelopment housing set-aside funding, make the maximum use of other resources
available for the provision of housing affordable to extremely low to moderate income households;" and
Resolution No. 2022-182 N.C.S. Page 3
DocuSign Envelope ID:7992BC1 1-F28B-451 B-AF2F-68DD2EOC9EC5
WHEREAS,the City of Petaluma's 5th cycle Housing Element includes Policy 5.2 which states: "ensure the
long-term affordability of units developed or provided with City assistance" and Program 5.5 notes that the City
should"continue to impose long term resale controls or rent restrictions on affordable units provided through the
inclusionary housing program or city subsidies to ensure that they remain affordable to the targeted income
groups;" and
WHEREAS,California law recognizes that local governments play a vital role in facilitating the development
of affordable housing, and starting in 1969 began mandating that all California jurisdictions plan for needed
housing at all income levels through the assignment of Regional Housing Needs Allocations and requirement that
each jurisdiction adopt a Housing Element each cycle; and
WHEREAS,Petaluma's Regional Housing Needs Allocation for the 5th cycle,which extended from 2015 to
2023, included 745 units of which 56%were categorized as lower income and moderate income; and
WHEREAS,Petaluma's Regional Housing Needs Allocation for the upcoming 6th cycle,which extends from
2023 to 2031, includes 1,910 units of which approximately 58% are categorized as lower income and moderate
income; and
WHEREAS, on September 13, 2021 the Petaluma City Council adopted Resolution No. 2021-149 N.C.S.
declaring a shelter crisis consistent with the discretion offered by AB 2553 and in recognition of the urgent need
for shelter faced by a significant and growing number of persons in the City; and
WHEREAS, the City's Development Impact Fees are not taxes as defined in Section 1, paragraph (e) of
Article XIIIC of the California Constitution("Proposition 26"),because the City's Development Impact Fees are
imposed for a specific benefit conferred or a privilege granted directly to the payor that is not provided to those
not charged, and which does not exceed the reasonable cost to the City of providing the service or produce; and/or
the City's Development Impact Fees are imposed for specific government services or products provided directly
to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the City
of providing the service or product; and/or the City's Development Impact Fees are imposed for the reasonable
regulatory costs to the City of issuing licenses and permits, performing investigations, inspections and audits,
enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof, and/or the
City's Development Impact Fees are imposed as a condition of property development; and
WHEREAS, the City's Development Impact Fees are not subject to the requirements of Proposition 218
concerning property related assessments and fees pursuant to Apartment Association of Los Angeles County v.
City of Los Angeles(2001)24 Cal.4th 830, in that such fees are not applicable to incidents of property ownership,
but rather to the actual use of and need for City services and/or facilities; and
WHEREAS, in accordance with Government Code Section 50076, fees and charges that do not exceed the
reasonable cost of providing the service or regulatory activity for which the fees are charged and which are not
levied for general revenue purposes are not special taxes as defined in Article 3.5 of the Government Code; and
WHEREAS,the mailed notice,fee report availability and published notice requirements in Government Code
Section 66016, part of the Mitigation Fee Act, do not apply to this action to provide for the non-applicability of
specified City Development Impact Fees to certain City-supported affordable housing projects to help the City
fulfill its RHNA responsibilities and to respond to the City's declared shelter crisis, because this action does not
create any new fees or increase any existing fees; and
WHEREAS,this resolution amending Resolution nos. 2014-036 N.C.S, 2014-037 N.C.S., 2014-038 N.C.S.,
2014-039 N.C.S., and 2016-076 N.C.S. to provide for non-applicability of the fees to certain City-supported
affordable housing is not a"project"within the meaning of Section 15378 of the California Environmental Quality
Resolution No. 2022-182 N.C.S. Page 4
DocuSign Envelope ID:7992BC1 1-F28B-451 B-AF2F-68DD2EOC9EC5
Act (CEQA) Guidelines, because it is an administrative activity that has no potential for resulting in physical
change in the environment, in that this resolution will merely provide a basis for the specified fees not applying
to certain housing projects, which projects will be carried out in accordance with all applicable CEQA
requirements; and this resolution is also statutorily exempt from CEQA requirements in accordance with Section
15273,subdivision(a)of the CEQA guidelines,because CEQA does not apply to the establishment,modification,
structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agencies which the public
agency finds are for the purpose of obtaining funds for capital projects, necessary to maintain service within
existing service areas, and the City Council hereby finds that the development fees amended by this resolution
are for the purpose of obtaining funds for capital projects necessary to maintain service levels and amenities in
the City as it develops.
NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Petaluma as follows:
1. The above recitals are hereby declared to be true and correct and are incorporated into this resolution as
findings of City Council.
2. This resolution amending Resolution nos. 2014-036 N.C.S, 2014-037 N.C.S., 2014-038 N.C.S., 2014-039
N.C.S., and 2016-067 N.C.S. to provide for non-applicability of the fees to certain City-supported affordable
housing is not a"project"within the meaning of Section 15378 of the California Environmental Quality Act
(CEQA) Guidelines, because it is an administrative activity that has no potential for resulting in physical
change in the environment,in that this resolution will merely provide a basis for the specified fees not applying
to certain housing projects, which projects will be carried out in accordance with all applicable CEQA
requirements. This resolution is also statutorily exempt from CEQA requirements in accordance with Section
15273, subdivision (a) of the CEQA guidelines, because CEQA does not apply to the establishment,
modification, structuring, restructuring, or approval of rates,tolls, fares, and other charges by public agencies
which the public agency finds are for the purpose of obtaining funds for capital projects,necessary to maintain
service within existing service areas, and the City Council hereby finds that the development fees amended
by this resolution are for the purpose of obtaining funds for capital projects necessary to maintain service
levels and amenities in the City as it develops.
3. The following is hereby added to the "Inapplicability of Fee" section in Resolution nos. 2014-036 N.C.S,
2014-037 N.C.S., 2014-038 N.C.S., 2014-039 N.C.S., and 2016-067 N.C.S., to read as follows:
a. Residential development projects that will be deed-restricted prior to occupancy to acutely low,
extremely low, very low, low, and/or moderate income residents and that will be owned and operated
by non-profit corporations recognized as such by the Unites States Internal Revenue Service and the
State of California Franchise Tax Board.
b. Residential development projects that will be deed-restricted prior to occupancy to acutely low,
extremely low,very low, low and/or moderate income residents,that will be supportive housing projects
or will provide on-site supportive services, and that have received or will receive City financial support
or other comparable City support such as the City applying for grant funding for the project as co-
applicant with or on behalf of the project developer.
c. For purposes of this section:
i. "Deed restricted"means that a restrictive covenant has been recorded against the title of all of the
property underlying the residential units in the development project which deed restriction will
run for at least 55 years.
Resolution No. 2022-182 N.C.S. Page 5
DocuSign Envelope ID:7992BC1 1-F28B-451 B-AF2F-68DD2EOC9EC5
ii. "Residential" means Multi Family Residential or Singe Family Residential as defined in this
resolution.
iii. "Supportive housing" and"Supportive services"have the meanings set forth in Section 65582 of
the Government Code, which is part of the Housing Accountability Act, as amended from time
to time.
iv. "Acutely low", "extremely low", "very low," "low," and"moderate"have the meanings set forth
in Section 33411.2 of the Health and Safety Code as amended from time to time.
4. The text in 3 above shall replace in its entirety paragraph (f) in Section 7 of Resolution nos. 2014-036 N.C.S,
2014-037 N.C.S., 2014-038 N.C.S. The text in 3 above shall be added as a new paragraph(f)to Section 7 in
Resolution nos. 2014-039 N.C.S., and 2016-067 and the paragraphs in Section 7 renumbered accordingly.
5. The Development Impact Fee resolutions amended by this resolution shall apply to all development projects
specified in Section 3 above as of the effective date of this resolution that have not yet paid to the City of
Petaluma the City Facilities Development Impact Fees, Parkland Development Impact Fees, Non-Quimby
Act Parkland Acquisition Impact Fees, or Open Space Land Acquisition Development Impact Fees applicable
to the development project, including approved development projects under construction.
6. This resolution shall take immediate effect upon adoption by the City Council.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 21It day of November DocusignedWW
2022,by the following vote:
rty ttorney
AYES: Mayor Barrett,Vice Mayor Pocekay,Barnacle,Fischer,Healy,McDonnell,King
NOES: None
ABSENT: None
ABSTAIN: None
DocuSigned by: DocuSigned,¢b.,y:
fit.
ATTEST: F� V sx bawvIIll
City Vfer1r29E44g2... Mayor
Resolution No. 2022-182 N.C.S. Page 6