HomeMy WebLinkAboutRESOLUTION 2025-122 N.C.S. 08/04/2025
Resolution No. 2022-122 N.C.S. Page 1
Resolution No. 2025-122 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 A LOAN OPTION FOR
PAYMENT OF THE FEES FOR 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
and a series of resolutions approving updated development fees on May 19, 2008; 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
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, 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. 2008088
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
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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 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
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, on November 21, 2022, the City Council adopted Resolution 2022-182 N.C.S. to amend
Resolution 2014-036 N.C.S. concerning City Facilities development impact fees, Resolution 2014 -037 N.C.S.
concerning Parkland Development impact fees, Resolution 2014-038 N.C.S. concerning Parkland Acquisition
development impact fees, Resolution 2014-039 N.C.S. Resolution Open Space land acquisition development
impact fees, and Resolution 2016-067 N.C.S. concerning Traffic development impact fees to provide for non-
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applicability of the fees to certain City-supported affordable housing projects, while leaving the City’s water and
wastewater capacity and connection fees applicable to such projects, to avoid additional costs of qualifying
affordable housing projects for the project applicants and the City under the City’s development fees, and also the
prevailing wage law, while maintain the City’s utility-related fee programs consistent with the financial needs of
the programs and the requirements of Article XIIID of the California Constitution (Proposition 218); and
WHEREAS, for some City-supported affordable housing projects that will be subject to the payment of
prevailing wages for project construction related activities, it may be more beneficial for the project and the City
to treat City development impact fees for City Facilities, Parkland Development, Parkland Acquisition, Open
Space land acquisition and Traffic that are otherwise applicable to the project as a below-market-rate loan with a
specified repayment date, rather than to treat such fees as inapplicable to the project, so as to provide a basis for
increased equity investment in the project, and to recoup the fees for the City’s development fee program and the
infrastructure projects it supports; 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 re asonable
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 an option for treatment of City Facilities, Parkland
Development, Parkland Acquisition, Open Space land acquisition and Traffic development impact fees as a below-
market-rate loan with a specified repayment date to for certain qualifying, City-supported affordable housing
projects 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; and
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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 financing of the specified
fees for certain qualifying 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 as a new provision at the end of the “Time for Fee Payment” section and
numbered accordingly 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:
In lieu of (but not in addition to) provisions added by Resolution 2022-182 N.C.S. making the
Fee inapplicable to specified deed-restricted, affordable residential development projects, and
upon City Council approval, the Fee applicable to residential development projects that will be
deed-restricted prior to occupancy to acutely low, extremely low, very low, low and/or moderate
income residents, which projects 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, may be treated as a loan from the account
in which the Fee proceeds are accrued, payable at a specified simple interest rate that is
comparable to rates that the City earns on its fee proceeds funds and other City funds, and due
upon a specified repayment or maturity date, with other appropriate terms and conditions as
evidenced by a promissory note and other appropriate documents which may include a loan
agreement and deed of trust as approved by the City Attorney to guarantee repayment of the loan.
For purposes of this provision:
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“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.
“Residential” means Multi Family Residential or Singe Family Residential as defined in
this resolution.
“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.
“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 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.
5. 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
Council of the City of Petaluma at a Regular meeting on the 04th day of August
2025, by the following vote:
Approved as to
form:
__________________________
City Attorney
AYES: McDonnell, Barnacle, Cader Thompson, DeCarli, Nau, Quint, Shribbs
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: ______________________________________________
City Clerk ____________________________________________
Mayor
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