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HomeMy WebLinkAboutRESOLUTION 2025-163 N.C.S. 12/15/2025 Resolution No. 2025-163 N.C.S. Page 1 Resolution No. 2025-163 N.C.S. of the City of Petaluma, California ACCEPTING THE FISCAL YEAR 2025 ANNUAL DEVELOPMENT IMPACT FEE REPORT PURSUANT TO GOVERNEMNT CODE SECTION 66006(b) WHEREAS, the City of Petaluma imposes fees to mitigate the impacts of development, pursuant to Government Code §§66000 et seq. (the “Mitigation Fee Act”); and WHEREAS, fees collected are deposited into a separate fund for each type of development impact fee; and WHEREAS, the Mitigation Fee Act requires the City of Petaluma to make available to the public certain information regarding the fees and regarding each fund on an annual basis within 180 days of the end of the fiscal year (i.e. June 30, 2025); and WHEREAS, the Development Impact Fee Report – Fiscal Year 2024-2025 and Development Impact Fee Program Five-Year Findings Report attached to the concurrent Staff Report as Exhibit A and incorporated herein by reference (“the Report”) provides the information required by the Mitigation Fee Act, specifically all information required by Government Code Section 66006(b)(1) and 66001(d); and WHEREAS, the Report was made available to the public on the City’s website on November 25, 2025 in accordance of the noticing requirements of Government Code Section 66006(b)(2); and WHEREAS, the City’s review and acceptance of the Report is not a project under the California Environmental Quality Act pursuant to Public Resources Code sections 21065 and 21080 and CEQA Guidelines Sections 15378 and 15061(b)(3) as reviewing and accepting the Report will not result in any direct or indirect physical change in the environment; and WHEREAS, the City Council has reviewed the Report at its regularly scheduled meeting on December 15, 2025. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Petaluma as follows: 1. The recitals stated herein are true and correct and adopted as findings of the City Council. 2. Finds that the City’s review and acceptance of the Report is not a project under the California Environmental Quality Act pursuant to Public Resources Code sections 21065 and 21080 and CEQA Guidelines Sections 15378 and 15061(b)(3) as reviewing and accepting the Report will not result in any direct or indirect physical change in the environment. Moreover, the annual report is an administrative fiscal action of existing fees and falls within the CEQA determination for when the fees were originally adopted. 3. The City Council has received and reviewed and hereby accepts the Development Impact Fee Report – Fiscal Year 2024-2025 attached hereto as Exhibit A and incorporated herein by reference (“the Report”). Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65 Resolution No. 2025-163 N.C.S. Page 2 4. Finds that the Report complies with Government Code Section 66006, as the Report was made available to the public within 180 days of the last day of fiscal year, it contains the following information for all City “fees” as defined by Government Code Section 66000(b): (A) A brief description of the type of fee in the account or fund. (B) The amount of the fee. (C) The beginning and ending balance of the account or fund. (D) The amount of the fees collected, and the interest earned. (E) An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. (F) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete. (G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. (H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocations pursuant to subdivision (f) of Section 66001. 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 15th day of December 2025, by the following vote: Approved as to form: __________________________ City Attorney AYES: McDonnell, Barnacle, Cader Thompson, DeCarli, Nau, Quint, Shribbs NOES: ABSENT: ABSTAIN: ATTEST: ______________________________________________ City Clerk ______________________________________________ Mayor Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65 Exhibit A CITY OF PETALUMA, CALIFORNIA ANNUAL DEVELOPMENT IMPACT FEE REPORT FISCAL YEAR 2024-25 Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65 City of Petaluma Annual Development Impact Fee Report Fiscal Year 2024-25 Background The Mitigation Fee Act, Government Code §§66000 et seq. (the “Act”), governs the establishment and administration of development impact fees paid by development projects which defray all or a portion of the cost of public facilities related to those projects. Fees must be separately accounted for and used for the specific purpose for which they are imposed. The City's adopted development impact fees are listed in the attached exhibits. Expenditures of collected fees are generally authorized through the annual Capital and Operating Budgets and the City's Capital Improvement Program. The annual adopted City Budget is on file with the City Clerk and located on the City’s website: https://cityofpetaluma.org/city-budgets/ Annual and Five-Year Development Fee Reporting The Act requires that the City prepare an annual report on all of its development impact fees after the end of each fiscal year. Government Code section 66006(b)(2) requires the annual report to be reviewed by the City Council at its next regular meeting not less than 15 days after the report is made available to the public. This Fiscal Year 2024-2025 annual report (“Report”) was made available to the public on the City of Petaluma website on November 25, 2025, posted at City Hall, and a copy of the Report also was mailed to all persons who had requested mailed notice relating to city fees on November 25, 2025. Excluded from this Report are developer fees which are not subject to the reporting requirements of the Act. For example, the City collects the following fees pursuant to the City's zoning powers rather than pursuant to the Act: in-lieu housing fees, commercial linkage fees (which are the non-residential equivalent of the in-lieu housing fees), public art in-lieu fees, and the fee related to the Central Petaluma Specific Plan area. Water capacity fees and wastewater capacity fees also are not development impact fees as defined in Sections 66006 and 66001 of the Act. Finally, the Quimby Act parkland acquisition fee for residential subdivisions is imposed pursuant to the Subdivision Map Act (Gov't. Code §66477) and is also not included in the Act’s reporting requirements. The Storm Drainage Fee was last updated in 1986, prior to the January 1, 1989 effective date of AB1600, but is nevertheless included in this Report for informational purposes. The City Council is also required to adopt by resolution certain findings for any fund accounts which contain unexpended funds as of the fifth fiscal year following the first deposit into those funds and every five years thereafter. (Gov't. Code §66001(d).) In FY 24-25, no impact fee funds fell into this category and therefore this Report does not contain information required to make the Five-Year Findings and the City will not be adopting a Five Year Findings resolution. The report is organized as follows: Exhibit A: A brief description of each development impact fee, its purpose, and its authorizing legislation (Gov't. Code §66006(b)(1)(A).) Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65 Exhibit B: Summary of the July 1, 2024 beginning balance, annual fee revenue collected, interest earned, returned unused funds from projects and loan repayments, identification of public improvements on which fees were expended, percentage of the improvements funded by fees, and the ending balance as of June 30, 2025 for each fee (Gov't. Code §66006(b)(1)(C)-(E).) Excess funds from capital project funds were returned to the originating revenue funds. Exhibit C: Identifies the amount of each development impact fee. (Gov't. Code §66006(b)(1)(B).) Exhibit D: Identifies interfund loans, transfers, refunds or reallocation of funds in lieu of refunds in Fiscal Year 2024-2025 (Gov't. Code §66006(b)(1)(G)-(H)). Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65 Exhibit A City of Petaluma Development Impact Fee Summary Fee # Impact Fee Name Fee Authority Brief Description of the Type of Fee 1 Parkland Acquisition Fee Reso. 2022-182 N.C.S; Reso. 2020- 009 N.C.S, January 6, 2020; Reso. 2014- 038 N.C.S., March 3, 2014; Reso. 2012- 124 N.C.S., August 27, 2012; Reso. 2008-092 N.C.S., May 19, 2008 The Parkland Acquisition Fee is imposed on development projects that are not subject to the Quimby Act. It funds acquisition of and payment for parkland necessary to maintain the standard established in the city's General Plan, based on a ratio of parkland acreage to population, including employees of new commercial development, as new residents and employees are added by new development. 2 Parkland Development Impact Fee Reso. 2022-182 N.C.S; Reso. 2020- 009 N.C.S, January 6, 2020; Reso. 2016- 160 N.C.S; October 3, 2016; Reso. 2014- 037 N.C.S., March 3, 2014; Reso. 2012- 122 N.C.S., August 27, 2012; Reso. 2008-093 N.C.S., May 19, 2008 The Parkland Development Fee funds public facilities which improve neighborhood and community parklands as needed to serve new development. 3 Open Space Acquisition Impact Fee Reso. 2022-182 N.C.S; Reso. 2020- 009 N.C.S, January 6, 2020; Reso. 2014- 039 N.C.S., March 3, 2014; Reso. 2012- 123 N.C.S., August 27, 2012; Reso. 2008-091 N.C.S., May 19, 2008 The Open Space Acquisition Fee funds acquisition of and payment for open space necessary to maintain the city's standard established in its General Plan based on a ratio of open space acreage to population, including employees of new commercial development, as new residents and employees are added by new development. 4 City Facilities Development Impact Fee Reso. 2022-182 N.C.S; Reso. 2020- 009 N.C.S, January 6, 2020;Reso. 2014- 036 N.C.S., March 3, 2014; Reso. 2012- 121 N.C.S., August 27, 2012 The City Facilities Development Impact Fee funds design, engineering, right-of-way and reasonable costs of outside consultant studies related thereto, reimburse the City for the Facilities constructed by the City with funds from other sources including funds from other public entities, reimburse developers who have designed and constructed any of the facilities with prior City approval and have entered into an agreement and pay for and/or reimburse costs of program development and ongoing Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65 administration and maintenance for the Fee program, including, but not limited to, the cost of studies, legal costs, and other costs of updating the Fee. 5 Storm Drainage Impact Fee Ord. 1530 N.C.S., eff. Sept. 20, 1982; Ord. 1653 N.C.S., eff. June 2, 1986 (Petaluma Municipal Code Chapter 17.30); Reso. 9751 N.C.S., June 2, 1986 The Storm Drainage Impact Fee funds the construction of storm drainage improvements needed to control increases in run-off created by new development projects. The Storm Drainage Impact Fee was adopted and last updated before the enactment and effective date of AB1600, but is included in this report for informational purposes. 6 Traffic Development Impact Fee Reso. 2022-182 N.C.S; Reso. 2020- 009 N.C.S, January 6, 2020; Reso.2016- 76 N.C.S. May 16, 2016 Reso 2015-191 N.C.S., Dec 7, 2015; Reso 2014-112 N.C.S., July 7, 2014 Reso. 2014-040 N.C.S., March 3, 2014; Reso. 2012- 125 N.C.S., August 27, 2012; Reso. 2008-095 N.C.S., May 19, 2008 The Traffic Development Impact Fee funds construction and implementation of improvements to key elements of the citywide transportation system sufficient to accommodate future traffic demand generated by new development. Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65 Exhibit B Development Impact Fee Report Fiscal Year 2024-2025 Fund Balance Fee Interest/Gain/Loss Return Unused Expenditures/ Est % funded Ending Balance Fund Fund Title / Project Title 7/1/2024 Revenue Revenue Funds /loan repymt Transfers by Impact Fees 6/30/2025 2141 Parkland Acquisition Impact Fees -08 2,868,872.43 52,881.35 140,710.91 1,057.63 3,061,407.06 City administrative costs 1,057.63 100.0% 2142 Parkland Development Impact Fees -08 670,030.69 174,911.12 28,841.37 653,498.22 220,284.96 c14402215 Lucchesi Skatepark 650,000.00 20.90% City administrative costs 3,498.22 100.00% 2143 Open Space Acquisition Impact Fees -08 700,324.20 12,423.25 28,334.28 250,248.47 490,833.26 City administrative costs 248.47 100.0% Kelly Creek Protection/Helen Putnam Park 250,000.00 100.0% 2152 City Facilities Development Impact Fees 8,408,483.35 176,199.00 391,648.05 1,760,823.98 7,215,506.42 c11202430 Library Roof Replacement 2,300.00 17.4% c11501911 Reserve Apparatus Storage 311,000.00 14.8% c11202433 Fire Station 1 Seismic Retrofit & Improv 435,000.00 14.8% c11202434 Fire Station 2 Kitchen Replcmnt & Renov 60,000.00 14.8% c11502435 Temporary Fire Station 949,000.00 14.8% City administrative costs 3,523.98 100.0% 2155 Storm Drainage Impact Fees 2,495,496.98 - 121,683.80 334,188.61 2,282,992.17 c16502254 Wilson Stormwater Pump Station Upgrades 334,000.00 68.8% City administrative costs 188.61 100.0% 2156 Storm Drainage Impact Fees -08 665,700.39 9,430.29 27,573.76 - 702,704.44 2160 Traffic Impact Fees 1,072,098.10 - 45,274.40 630,000.00 487,372.50 c14502114 Lych Creek Trail 56,000.00 32.8% c16102251 D Street Improvements 248,000.00 6.5% c16102032 Pedestrian Improvements Citywide 245,000.00 32.7% c16102433 Pet No Smart Station 76,000.00 17.5% c16102537 St Francis Pavement Restoration 5,000.00 4.6% City administrative costs - 2161 Traffic Impact Fees -08 33,122,333.12 315,138.69 1,614,895.38 - 6,302.77 35,046,064.42 City administrative costs 6,302.77 100.0% Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65 Exhibit C FY 24/25 Development Impact Fee Schedule Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65 Exhibit C FY 24/25 Development Impact Fee Schedule Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65 STORM DRAIN IMPACT FEE Calculation of Fee Runoff computation: The increase in runoff created by a given project is calculated for a 100-year storm, utilizing runoff coefficients based upon the portion 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 type detached single-family subdivision would pay approximately $1,500 per acre. Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65 Exhibit D Status of Interfund Loans, Transfers, Refunds or Reallocation of Funds Fiscal Year 2024-25 Interfund Loans The Storm Drainage Impact Fee fund loaned the Storm Water Utility Operations fund $690,230 to cover storm water maintenance costs from January 1, 2012 through June 30, 2013. Payment of principal and interest for FY 24-25 was $46,664. The balance as of June 30, 2025 is $201,097.20. This loan is scheduled to be repaid by June 30, 2030. The City Facility Impact Fee fund loaned the Parks Capital Improvement fund $315,881 for construction of a Tennis and Pickle Ball Court. Payment of principal and interest for FY 24-25 was $38,890. The balance as of June 30, 2025 is $200,362.22. This loan is scheduled to be repaid by June 30, 2030 There were no Transfers, Refunds or Reallocation of Funds during FY 24-25. Docusign Envelope ID: 99128EF0-2F67-49A4-A187-AD9EA2C2AD65