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HomeMy WebLinkAboutResolution 2012-122 N.C.S. 08/27/2012 Resolution No. 2012-122 N.C.S. of the City of Petaluma, California UPDATING THE PARK LAND DEVELOPMENT IMPACT FEE TO PROVIDE FOR PARK IMPROVEMENTS FOR COMMUNITY AND NEIGHBORHOOD PARKS FOR FUTURE DEVELOPMENT WITHIN THE CITY OF PETALUMA AND SUPERSEDING SUCH FEE ADOPTED BY RESOLUTION NO. 2008-093 N.C.S., MAY 19, 2008 RECITALS WHEREAS, the City of Petaluma General Plan 2025 ("General Plan") outlines future land uses within the City of Petaluma ("City") and applies to a planning area which includes the City and land outside the City in unincorporated Sonoma County which must also be considered to properly plan for the City's future; and, WHEREAS, the General Plan of the City was adopted by the Petaluma City Council ("City Council") on May 19, 2008; and, WHEREAS, an Environmental Impact Report ("EIR") was prepared for the General Plan (State Clearinghouse #2004082065) pursuant to the California Environmental Quality Act ("CEQA") and certified by the City Council on April 7, 2008 by Resolution No. 2008-058 N.C.S.; and, WHEREAS, the General Plan area is shown on the land use maps contained in the General Plan; and, WHEREAS, the City Council last updated the City's Park Land Development Impact Fee for New Development by Resolution No. 2008-093 N.C.S., adopted May 19, 2008; and, WHEREAS, the General Plan designates a defined land use for all property within the City and, based on those uses, calculates the expected number of residents, residential units, employees, and square footage of nonresidential development that will result if all property in the City is developed as planned by the year 2025. The General Plan incorporates policies and programs to mitigate the impacts of such new development, including policies that require new development to pay for its proportional fair share of the costs of acquiring and improving public facilities, including community and neighborhood park improvements, necessary to meet the demands of residents, employees, customers, and businesses; and, WHEREAS, the General Plan and its EIR analyze the impacts of development under the General Plan and proposed mitigation measures, including the creation of fee programs to require new development to pay for its proportional fair share of the cost of acquiring and improving public facilities necessary to meet the demands of new residents, employees, customers, and businesses for such facilities; and, WHEREAS, Goal 1-G-6 of Chapter 1 of the General Plan provides that the City should "Maintain a residential growth management system to ensure public infrastructure keeps pace with growth"; and, Resolution No.2012-122 N.C.S. Page 1 WHEREAS, Policy 1-P-48 of Goal 1-G-6 of Chapter 1 of the General Plan provides that the City should "Ensure that all new development provides necessary public facilities to support the development," and includes program A which provides that the City should: "Collect proportionate fair share of long-term infrastructure improvement costs as entitlements are granted" and program B: "Initiate design of long term infrastructure improvements in a timely manner to ensure their completeness to coincide with demand"; and, WHEREAS, Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Retain and expand city-wide park and recreation assets and programs to maintain the quality of life they provide to the community"; and, WHEREAS, Policy 6-P-1 of Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Develop additional park land and recreational facilities in the City, particularly in areas lacking these facilities and where new growth is proposed, to meet the standards of required park acreage"; and, WHEREAS, Policy 6-P-3 of Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Connect city park with other public facilities, open spaces, employment centers, and residential neighborhoods by locating new recreation facilities in proximity to these uses and by fully integrating the parks system with the city's pedestrian, bicycle, and transit systems"; and, WHEREAS, Policy 6-P-5 of Goal 6-G-1 of Chapter 6 of the General Plan provides that "New park land or recreation facilities, beyond those identified in the General Plan, may be required as part of any development review and entitlement process"; and, WHEREAS, Policy 6-P-6 of Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Achieve and maintain a park standard of 5 acres per 1,000 residents (community park land at 3 acres per 1,000 population and neighborhood park land at 2 acres per 1,000 population) and an open space/urban separator standard of 10 acres per 1,000 population, in order to enhance the physical environment of the city and to meet the recreation needs of the community"; and, WHEREAS, Program (A) of Policy 6-P-7 of Goal 6-G-1 of Chapter 6 of the General Plan provides that the City should "Review and, if necessary, revise the City's Municipal Code regarding the payment of community park impact fees to maximize all opportunities for funding community and neighborhood park land, park improvements, and park operation and maintenance through the development entitlement process"; and, WHEREAS, Goal 6-G-2 of Chapter 6 of the General Plan requires that the City should "Ensure park and recreational assets are maintained to allow safe access and use"; and, WHEREAS, Policy 6-P-17 of Goal 6-G-2 of Chapter 6 of the General Plan provides that "Recognizing that the maintenance of City assets is a matter of civic pride, priority and safety, the City shall work with.citizens, businesses, schools, organizations, and public agencies to fund an acceptable level of maintenance for all city-owned park and recreational facilities"; and, WHEREAS, Chapter 20.34 of the Petaluma Municipal Code, adopted pursuant to California Government Code Section 66477 (the "Quimby Act"), requires the dedication of park Resolution No. 2012-122 N.C.S. Page 2 land as a part of residential development subject to the Quimby Act, or the payment of a fee in lieu of dedicating property. The Quimby Act applies only to fees and/or dedications imposed on certain subdivisions subject to the Subdivision Map Act (California Government Code Section 64410 et seq.) to fund land acquisition costs for park or recreational purposes. The Quimby Act does not apply to imposition of fees for park land improvements imposed on residential and non- residential development; and, WHEREAS, the City retained Municipal Resource Group, LLC to determine, based in part on the land use designations provided by the General Plan, the additional park improvements for community and neighborhood park lands that would be necessary to maintain the level of those services provided to the community and to fund new development's share of the costs of maintaining the developed park acreage and improvements available to Petaluma; and, WHEREAS, Municipal Resource Group, LLC prepared the "City of Petaluma Mitigation Fee Act Nexus Report & Quimby Act In-Lieu Fee Report" ("Report"), dated August 14, 2012 ("Report"), a copy of which is on file in the Office of the City Clerk and hereby made a part of this Resolution by reference. The Report, in Chapter IV and Appendix Q, outlines the cost of park improvements for community and neighborhood park lands necessary to maintain the current levels of developed park lands provided to the community and thereby meet the demands of new residents for those services through build out under the General Plan. The Report estimates the cost in current dollars of the improvements, and calculates the fees necessary to raise the revenue necessary to pay for the improvement costs attributable to new development; and, WHEREAS, the Report, the General Plan and the General Plan EIR describe the impacts of contemplated future development on existing public facilities in the City of Petaluma related to park improvements for community and neighborhood parks and analyze the need for such new park improvements for community and neighborhood parks required by future development within the City of Petaluma, described above and in Chapter IV and Appendix Q of the Report; and, WHEREAS, the Report estimates the cost in current dollars of the Facilities, assigns the portion of those costs attributable to new development, and calculates the fees necessary to raise the revenue necessary to pay for the portion of the costs of the Facilities attributable to new development; and, WHEREAS, The Park Land Development Impact Fee is not a "tax" as defined in Section I, paragraph (e) of Article XIIIC of the California Constitution ("Proposition 26") because such fee is imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the City of providing the service or product; and/or the fee is imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the City of providing the service or product; and/or the fee is imposed for the reasonable regulatory costs to the City of issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof; and/or the fee is imposed as a condition of property development; and, Resolution No.2012-122 N.C.S. Page 3 WHEREAS, the Park Land Development Impact Fee adopted by this Resolution is not subject to the requirements of Article XIIID of the California Constitution ("Proposition 218") concerning property related assessments and fees pursuant to Apartment Association of Los Angeles County v. City of Los Angeles (2001) 24 Cal.4th 830, in that such fee is not applicable to incidents of property ownership, but rather to actual use of and need for City services and/or facilities; and, WHEREAS, in accordance with Government Code Section 50076, fees and charges that do not exceed the reasonable cost of providing the service or regulatory activity for which the fees are charged and which are not levied for general revenue purposes are not special taxes as defined in Article 3.5 of the Government Code; and, WHEREAS, in accordance with Government Code Section 66016, at least fourteen (14) days prior to the public meeting at which this Resolution was adopted, notice of the time and place of the meeting was mailed to eligible interested parties who filed written requests with the City for mailed notice of meetings on new or increased fees or service charges; and, WHEREAS, in accordance with Government Code Section 66016, the Report was available for public inspection, review, and comment for ten (10) days prior to the public meeting at which the City Council considered the adoption of the Fee; and, WHEREAS, ten (10) days advance notice of the public meeting at which the City Council considered the Report and adoption of the Fee was given by publication in accordance with Government Code Section 6062a; and, WHEREAS, on August 27, 2012, the City Council introduced Ordinance No. 2444 N.C.S., which adds new Title 19, entitled "Development Fees," to the Petaluma Municipal Code ("Code") and amends, repeals and/or recodifies various provisions authorizing the City's development-related fees, including the City Facilities Development Impact Fee, Park Land Development Impact Fee, Open Space Land Acquisition Fee, Park Land Acquisition Fee (Non- Quimby Act), Park Land Acquisition Fee (Quimby Act), Traffic Development Impact Fee, Water and Wastewater Capacity Fees and the Commercial Development Housing Linkage Fee; ' and, FINDINGS WHEREAS, the City Council finds as follows: A. After considering Chapter IV and Appendix Q of the Report, the testimony received at the noticed public meeting at which this resolution was adopted, the accompanying .staff report, the General Plan, the General Plan EIR, and all correspondence received at or prior to the public meeting (the "Record"), the Council approves and adopts the Report; and the City Council further finds that the future development in the City of Petaluma will generate the need for the Facilities, and the Facilities are consistent with the City's General Plan. B. The City currently provides improved community and neighborhood park facilities to the community and the fee set forth in this resolution will be used to maintain current service levels. As such, the City Park Land Development Impact Fee as it relates to development within the City is not a "project" within the meaning of CEQA (Pub. Res. Code §21080(b)(8)(D)). Resolution No.2012-122 N.C.S. Page 4 C. In adopting the Fee, the City Council is exercising its powers under Article XI, §§5 and 7 of the California Constitution, Chapter 5 of Division 1 of the Government Code ("Mitigation Fee Act"), commencing with Section 66000, Section 54 of the City of Petaluma Charter, and Chapter 19.16 of the Petaluma Municipal Code, collectively and separately. D. The Record establishes: 1. In accordance with. Section 66000, subdivision a, paragraph 1 of the Mitigation Fee Act, the purpose of the Park Land Development Impact Fee ("Fee"), set forth in this resolution, as specified in Chapter IV of the Report, is to provide funding to achieve the City's goal of maintaining existing service levels and to provide adequate community and neighborhood park facilities to meet the broad range of needs of Petaluma residents and employees as established in the General Plan. Existing standards for community and neighborhood parks have been identified which have been used as the basis to maintain these standards for future development and to mitigate the impacts caused by future development in the City. 2. In accordance with Section 66000, subdivision a, paragraph 2 of the Mitigation Fee Act, the Fee collected pursuant to this resolution shall be used to construct the Facilities as described in the Report and the General Plan and the City's budget for capital improvements ("the Facilities"). The Facilities, which are specifically described in Chapter IV and Appendix Q of the Report, include the following: • Construction of 43.63 acres of community parks • Construction of 29.01 acres of neighborhood parks 3. In accordance with section 66000, subdivision a, paragraph 3 of the Mitigation Fee Act, there is a reasonable relationship between the Fee's use (to pay for the construction of the Facilities) and the type of development for which the Fee is charged in that the fee will be applied all development in the City — including residential, commercial, office, and industrial development projects, which will generate new demands for park facilities. The community park improvements and neighborhood park improvements constructed with the proceeds of the Fee will address and mitigate the additional impacts and demands created by residential and non-residential development projects. 4. In accordance with Section 66000, subdivision a, paragraph 4, there is a reasonable relationship between the need for the Facilities and the types of development projects on which the Fee is imposed in that the Fee will be applied to new development in the City of Petaluma—both residential and non-residential. These development projects will generate new residents and employees who live, work, and/or shop in Petaluma and who generate or contribute to the demand for park improvements, because the new residents and employees will use community and neighborhood parks developed with the improvements and the same standard of improvements Resolution No.2012-122 N.C.S. Page 5 will be provided to new residents and employees as to existing residents and employees. 5. In accordance with Section 66000, subdivision b of the Mitigation Fee Act, there is a reasonable relationship between the amount of the Fee and the cost of the Facilities, or the portion thereof attributable to the development in the City on which the Fee is imposed in that the Fee has been calculated by apportioning the cost of constructing new community and neighborhood parks to each type of new residential unit, and to the "resident equivalent" of each employee generated by commercial, office and industrial development projects. The full cost of the Facilities has been allocated to the Fee because the entire cost will be incurred to provide the same standard of park improvements to future residents and employees as is provided to existing residents and employees. 6. The cost estimates set forth in the Report are reasonable estimates for constructing or acquiring the Facilities, and the Fees expected to be generated by future development will not exceed the projected cost of constructing and/or acquiring the Facilities. 7. The method of allocation of the Fee to a particular development bears a fair relationship and is roughly proportional to each development's burden on and benefits from the Facilities to be funded by the Fee, in that the Fee is calculated based on the number of residents or employees each particular development will generate. 8. The Report is a detailed analysis of how public services will be affected by development in the City and the public facilities required to accommodate that development. 9. The Fee is consistent with the General Plan and, pursuant to Government Code Section 65913.2; the City Council has considered the effects of the Fee with respect to the City's housing needs as established in the housing element of the General Plan. 10. The Fee amounts set forth in Exhibit A include the reasonable costs of administration and compliance of the Fee program with the requirements of the Mitigation Fee Act and other applicable law. The Fee program and administration cost is calculated to be approximately 2% of the total Fee as indicated in Chapter VII of the Report. Resolution No. 2012-122 N.C.S. Page 6 ADOPTION OF FEE NOW, THEREFORE, BE IT RESOLVED, 1. Definitions. a. "Accessory Dwelling" shall mean a second unit which meets the standards set forth in Section 7.030 of Chapter 7, "Standards for Specific Land Uses" of the City of Petaluma Implementing Zoning Ordinance ("IZO"), as modified by any subsequent amendment or successor zoning ordinance and/or development code provision adopted by the City which defines Accessory Dwelling, second unit or second dwelling unit." b. "Commercial" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, No. 2300 N.C.S., or any successor ordinance, for facilities for the purchase and sale of commodities and services and the sales, servicing, installation, and repair of such commodities and services and other uses incidental to these activities. Commercial land uses include but are not limited to: apparel and clothing stores; auto dealers and malls; auto accessories stores; banks and savings and loans; beauty salons; book stores; discount stores and centers; dry cleaners; drug stores; eating and drinking establishments; furniture stores and outlets; general merchandise stores; hardware stores; home furnishings and improvement centers; Laundromats; liquor stores; service stations; shopping centers; supermarkets; bicycle shops; cameras and photographic supply stores; convenience stores; department stores; drug stores and pharmacies; jewelry stores; luggage and leather goods stores; sporting goods and equipment stores; stationery stores; collectible stores; second hand goods stores; religious goods stores; hobby materials stores; small wares stores; plant sales; bowling alleys; coin-operated amusement arcades; dance halls, clubs and ballrooms; electronic game arcades; ice skating and roller skating establishments; pool and billiard rooms; amusement and theme parks; go-cart tracks; golf driving ranges; miniature golf courses; water slides; banks and trust companies; credit agencies; holding companies; lending and thrift institutions; securities/commodity contract brokers and dealers; fueling stations and gas stations; security and commodity exchanges; vehicle finance leasing agencies; restaurants, cafés and coffee shops; and movie theatres and civic theatres. c. "Developed" and "Development" shall mean the construction or alteration of or addition to, other than by the City, of any building or structure within the City of Petaluma. d. "Facilities" shall include those municipal public facilities as are described in the Report related to providing general improvements to community and neighborhood park lands. "Facilities" shall also include comparable alternative facilities should later changes in projections of development in the region necessitate construction of such alternative facilities; provided Resolution No.2012-122 N.C.S. Page 7 that the City Council later determines (1) that there is a reasonable relationship between development within the City of Petaluma and the need for the alternative facilities; (2) that the alternative facilities are comparable to the facilities in the Report; and (3) that the revenue from the Fee will be used only to pay new development's fair and proportionate share of the alternative facilities. e. "Industrial" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation as established in the hnplementing Zoning Code, Ordinance No. 2300 N.C.S., or any successor ordinance, for the manufacture, production, assembly, and processing of consumer goods, uses incidental to those activities, and research, development and warehousing. Industrial land uses include, but are not limited to: assembly; contractor's storage yards; fabrication; lumber yards; manufacturing; outdoor stockyards and service yards; printing; processing; warehouses and distribution centers; wholesale and heavy commercial enterprises; clothing, fabric and other product manufacturing; electronics, equipment, and appliance manufacturing; metal products fabrication, machine and welding shops; paper product manufacturing; food and beverage product manufacturing; small-scale manufacturing; lumber and wood product manufacturing; machinery manufacturing; motor vehicle and transportation equipment manufacturing; stone and cut stone product manufacturing; structured clay and pottery product manufacturing; processing of building materials, chemicals, fabricated metals, paper products, machinery, textiles, and/or equipment; and collection, sorting and processing enterprises. "Mixed Development" shall mean a development that includes more than one of the types of development defined in this Section 1. Mixed developments may combine residential types of development (Single Family and Multifamily), non-residential types of development (Commercial, Industrial, and Office), or a combination of residential and non-residential types of development. g. "Multifamily Residential" shall mean any residential Development that does not qualify as detached single family dwelling unit Development as defined in the California Building Standards Code, as adopted by the City. h. "Office" shall mean any development constructed or to be constructed on land having a General Plan 2025 land use or zoning designation, as established in the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., or any successor ordinance, for general business offices, medical and professional offices, administrative or headquarters offices for large wholesaling or manufacturing operations, and other uses incidental to these activities. Office land uses include but are not limited to: administrative headquarters; business parks; finance offices; insurance offices; legal offices; medical and health services offices; office buildings; professional and administrative offices; professional associations; real estate offices; and travel agencies. Resolution No. 2012-122 N.C.S. Page 8 i. "Single Family Residential" shall mean detached, single-family dwelling unit development as defined in the California Builders Standards Code, as adopted by the City. 2. Park Land Development Impact Fee Imposed. Pursuant to the Mitigation Fee Act and Chapter 19.16 of the City of Petaluma Municipal Code, a Park Land Development Impact Fee shall be imposed and paid at the times and in the amounts and otherwise apply and be administered as prescribed in this Resolution on each type of development set forth in Exhibit A, which is attached to and made a part of this Resolution, including each portion of such Development within Mixed Development. 3. Time for Imposing Fee. In accordance with Government Code Section 65961, the Fee for residential subdivision development for which tentative or parcel maps are required pursuant to the Subdivision Map Act (Government Code Section 66410 el seq.) shall be imposed at the time of approval of the conditions that apply to the tentative or parcel map for such residential subdivision development, as applicable. Payment of the Fee shall be deemed to be a condition of all such tentative or parcel maps. Notwithstanding this Section 3, the time for payment of the Fee for all development, including Single Family Residential and Multiple Family Residential subdivisions, shall be as specified in Section 4, below. 4. Time for Fee Payment. a. In accordance with Government Code Section 66007, the Fee shall be charged and paid for each residential development upon the date of final inspection or issuance of the certificate of occupancy for such residential development, whichever is earlier. I-lowever, if the Fee is to reimburse the City for expenditures previously made, or if the City determines that the Fee will be collected for Facilities for which an account has been established and funds appropriated and for which the City has adopted a proposed construction schedule prior to issuance of the building permit for such residential development, then the Fee shall be charged and paid upon issuance of the building permit for such residential development. However, with respect to a residential development proposed by a nonprofit housing developer in which at least forty-nine percent (49%) of the total units are reserved for occupancy by lower income households, as defined in Health and Safety Code Section 50079.5, at an affordable rent, as defined in Health and Safety Code Section 50053, the payment procedures described in Government Code Section 66007(b)(2)(A)-(B) shall apply. b. The Fee shall be charged and paid for each non-residential Development upon issuance of the building permit for such non-residential Development. Resolution No. 2012-122 N.C.S. Page 9 c. The Fee shall be charged and paid for each Mixed Development upon the times specified in this Section 4 that apply to such Mixed Development. For example, if a Mixed Development includes residential Development and non-residential Development, and the Fee is to reimburse the City for expenditures previously made, or the City has made the required determination to permit requiring payment of the Fee upon issuance of the building permit, and the procedures in Government Code section 66007(b)(2)(A)-(B) do not apply, the Fee as applicable to the entire mixed development shall be paid upon issuance of the building permit for the Mixed Development. If a Mixed Development includes residential and non-residential development, and the Fee is not to reimburse the City for expenditures previously made or the City has not made the required determination to permit requiring payment of the Fee upon issuance of the building permit, the Fee as to the residential portion of the mixed development shall be paid upon the earlier of.the date of final inspection or issuance of the certificate of occupancy for such residential portion, and the Fee as to the non-residential portion of the Mixed Development shall be paid upon issuance of the building permit for such non-residential portion. 5. Amount of Fee. a. The amount of the Fee for residential and non-residential development shall be as set forth in Exhibit A attached hereto and incorporated herein. b. The amount of the Fee for Mixed Development shall be the sum of the following, as applicable: 1. The applicable amount per unit pursuant to Section 5(a), above, for each residential development within a Mixed Development. 2. The applicable amount per 1,000 square feet of Development pursuant to Section 5(a), above, for each nonresidential Development or portion of such Development within a Mixed Development. c. Any non-residential development on property on which a building or structure was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this resolution that is applicable to the new development or use, less the fee applicable to the prior development or use, so long as such prior use was in existence at the time of adoption of General Plan 2025. 6. Designation of Developments. Nonresidential developments, other than Mixed Developments (but including non-residential developments within Mixed Developments) that are not within the definition of a use defined in this resolution shall be assigned to one of the defined use categories by the City Manager for purposes of Resolution No. 2012-122 N.C.S. Page 10 imposition and charging of the Fee. The City Manager shall assign such categories as consistently as possible with the definitions of such categories established pursuant to this resolution or as later amended by the City Council. The City Manager may also designate Development as Multifamily or Single- Family based on the actual number of dwelling units per structure within the development. 7. Inapplicability of Fee. • The Fee shall not apply to: a. Any alteration or addition to a residential structure, except to the extent that a residential unit is added to a single family residential unit or another unit is added to an existing multi-family residential unit. b. Any replacement or reconstruction of an existing residential structure that has been destroyed or demolished, if the building permit for reconstruction is obtained within one year after the building was destroyed or demolished. This subsection shall not apply if the replacement or reconstruction increases the square footage of the structure by 50 percent (50%) or more. c. Any replacement or reconstruction of an existing non-residential structure that has been destroyed or demolished, if the building permit for reconstruction is obtained within one year after the building was destroyed or demolished, there is no change in the land use designation of the property, and the square footage of the replacement building does not exceed the square footage of the building that was destroyed or demolished. d. Any addition to an existing non-residential structure of 500 square feet or less. e. Any public or quasi-public development on lands designated Public/Semi- Public or Education on the General Plan Land Use Map, as of the effective date of the Fee, so long as such development is intended to serve development in the City and does not itself generate a need for additional public infrastructure needed to serve new development, as in the way new residential development generates new residents requiring City services, and new non-residential development generates new employees in the City using City services. f. Low and/or moderate income senior citizens housing projects owned and developed by a charitable, nonprofit organization recognized as such by the United States Internal Revenue Service and the State of California Franchise Tax Board. g. The City Council, in its discretion, may determine that the Fee is inapplicable to certain development constructed or to be constructed by a public entity on land having an appropriate General Plan land use designation provide that the City Council finds that such inapplicability is Resolution No. 2012-122 N.C.S. Page II 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. 8. Use of Fee Revenue. The revenues raised by payment of the Fee shall be placed in a separate, interest bearing account to permit accounting for such revenues and the interest that they generate. Such revenues and interest shall be used only for the Facilities and the purposes for which the Fee was collected, which are the following: a. To pay for design, engineering, right-of-way or land acquisition and construction and/or acquisition, of the Facilities and reasonable costs of outside consultant studies related thereto; b. To reimburse the City for the Facilities constructed by the City with funds from other sources including funds from other public entities, unless the City funds were obtained from grants or gifts intended by the grantor to be used for the Facilities. c. To reimburse developers who have designed and constructed any of the Facilities with prior City approval and have entered into an agreement, as provided in Section 9, below; and d. To pay for and/or reimburse costs of program development and ongoing administration and maintenance of the Fee program, including, but not. limited to, the cost of studies, legal costs, and other costs of updating the Fee. 9. Credits and Reimbursement for Developer Constructed Facilities. The City and a developer may enter into an improvement agreement to allow the developer to construct certain of the Facilities. Entering such an agreement is in the City's sole discretion. Such agreement shall provide for security for the developer's commitment to construct the Facilities and shall refer to this resolution for credit and reimbursement. If the City enters into such an agreement with a developer prior to construction of one or more of the Facilities, the City shall provide the developer a credit in accordance with the following: a. Credit Amount. The credit shall be in the amount of the lowest bid received for construction of the facility, as approved by the City Engineer. However, in no event shall a credit pursuant to this provision exceed the current facility cost. For the purposes of this section, such current facility cost shall be the amount listed in the Report for the particular facility, as subsequently Resolution No.2012-122 N.C.S. Page 12 adjusted pursuant to Sections 13 and 14 of this Resolution prior to issuance of the building permit for that facility. Once issued, credit pursuant to this section shall not be adjusted for inflation or any other factor. Credit provided pursuant to this section is not transferable. b. Application of Credit. Developers may apply credit given pursuant to this section against the Fee applicable to a particular project until the credit is exhausted or an excess credit results. The total credit shall be divided by the number of units or square footage of building space(or combination thereof for a Mixed Use Development) to determine the amount of credit which can be applied against the Fee for each unit of measurement and, if the credit per unit of measure is less than the Fee per unit of measurement, the developer shall pay the difference for each residential unit or square footage of building space. c. Reimbursement for Excess Credit. Reimbursement for excess credit shall only be from remaining unspent Fee revenues. Once all the Facilities have been constructed or acquired, and to the extent Fee revenues are sufficient to cover all claims for reimbursement of Fee revenues, including reimbursement for excess credit, developers with excess credit shall be entitled to reimbursement, subject to such developers certifying in writing to the City that the cost of constructing the facility that resulted in an excess credit was not passed on to homeowners, and indemnifying the City from land-owner claims for reimbursement under the Mitigation Fee Act, and Section 66001 in particular. If remaining Fee revenues after all of the Facilities have been constructed or acquired are insufficient to cover all claims for reimbursement of Fee revenues, such claims, including claims for reimbursement of excess credit, shall be reimbursed on a pro rata basis in accordance with applicable law. 10. Standards. The standards upon which the need for the Facilities is based are the standards of the City, including the standards contained in the General Plan and its EIR and those City standards reflected in the Report. 11. Periodic Review. 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 Resolution No. 2012-122 N.C.S. Page 13 for all Facilities to be financed with the Fee. The estimated costs shall be adjusted in accordance with appropriate indices of inflation. The City Council shall make findings identifying the purpose to which the existing Fee revenue balances are to be put and demonstrating a reasonable relationship between the Fee and the purpose for which it is charged. 12. Subsequent Analysis and Revision of the Fee. The Fee set forth herein is adopted and implemented by the City Council in reliance on the Record identified above. The City may continue to conduct further study and analysis to determine whether the Fee should be revised. When additional information is available, the City Council may review the Fee to determine that the Fee amounts remain reasonably related to the impacts of development within the City of Petaluma and areas included in the City's General Plan. The City Council may revise the Fee to incorporate findings and conclusions of further studies and any standards in General Plan and/or the General Plan EIR, as well as increases due to inflation and increased construction costs. 13. Fee Adjustments. a. Annual CPI Adjustments. The Fee established will escalate or decrease annually by the same percentage the latest "Engineering News Record Construction Cost Index-20 City Average" ("Index") annually escalates or decreases. The adjustment shall be based on a comparison of the most recent Index to the Index in the month of adoption of the Fee, or the Index used for the prior adjustment of the Fee. The Finance Director shall compute the increase or decrease in such Fee. The first adjustment will take effect on the second July 1st following the adoption of this resolution and each subsequent July 1st. b. Refund Applications Based on 2008 Development Fees Paid. Current owners of development that paid development fees pursuant to Resolution No. 2008-093 N.C.S. may apply for a refund of the difference, if any, between the total development fees that owner paid pursuant to said resolution ("prior fee"), and the resolution(s) that superseded the resolution listed in this provision ("current fee"), if the total amount of prior fees paid exceeds the total amount of current fees applicable to that development, subject to the following: 1. To be eligible for a refund, current development owners must certify in writing to the City that the owner has not recovered or is not recovering from third parties such as tenants or others the amount of the prior fees paid or the amount by which the prior fees exceeds the current fees. 2. Any refunds pursuant to this provision shall only be paid from existing, un-obligated, unspent Fee revenue balances. The City will have no obligation to pay refunds to any owner absent sufficient existing, un-obligated, unspent Fee revenue balance available for that purpose. Resolution No. 2012-122 N.C.S. Page 14 3. If existing, un-obligated, unspent Fee revenue balances are insufficient to cover eligible applications for refund, such eligible applications shall be paid refunds on a pro rata basis in accordance with applicable law. 14. Administrative Guidelines. The Council may, by resolution, adopt administrative guidelines to provide procedures for calculation, credit, reimbursement, payment and other administrative aspects of the Fee. Such guidelines may include procedures for construction of designated Facilities by developers. 15. Effective Date. This resolution and the Fee imposed pursuant to Section 2 shall become effective on the effective date of Ordinance No. 2444 N.C.S. 16. Severability. Each component of the Fee and all portions of this Resolution are severable. Should any individual component of the Fee or other provision of this Resolution be adjudged to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective, and the Fee shall be fully effective except as to that component that has been judged to be invalid. 17. Supersession/Repeal/Savings Clause. All resolutions and parts.thereof in conflict with the provisions of this Resolution are superseded and repealed, effective on the effective date of the Fee imposed pursuant to Section 2. However, violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this Resolution, under any chapter, ordinance, or part of an ordinance, or resolution or part of a resolution, shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal. Under the power and authority conferred upon this Council by the Charter of said City. //a REFERENCE: 1 hereby certify the foregoing Resolution was introduced and adopted by the A.troy, -as to Council of the City of Petaluma at a Special meeting on the 27ih day of August. fohn: 2012,by the following vote: ity 'ttorney AYES: Albertson,Mayor Glass.Harris,Healy.Kearney.Vice Mayor Renee NOES: Barrett ABSENT: None ABSTAIN: None 1l ATTEST: AO City Clerk • Mayor No.2012-122 N.C.S. Page 15 EXHIBIT A PARK LAND DEVELOPMENT IMPACT FEE " { S „! Land Use,Type " Fee Amount UnitofMeasurement k Single Family Residential $5,212 Unit Multifamily Residential $3,510 Unit Accessory Dwelling $1,788 Unit Commercial $987 1,000 square feet of building space Office $944 1,000 square feet of building space Industrial $601 1,000 square feet of building space Resolution No. 2012-122 N.C.S. Page 16