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01/04/2005, PH1 - MARGARITA AREA DEVELOPMENT IMPACT FEES
i Council °"` 1-4-05 j acEnba RepoRt CITYOF SAN LUIS O B I S P O FROM: Bill Statler,Director of Finance & Information Technology SUBJECT: MARGARITA AREA DEVELOPMENT IMPACT FEES CAO RECOMMENDATION Adopt a resolution establishing development impact fees in the Margarita Area for transportation and park improvements. DISCUSSION Overview. Adopting the attached resolution simply implements the financing plan already approved by the Council as an integral part of the Margarita Area Specific Plan (MASP). In accordance with the requirements of AB 1600, the recommended resolution formally establishes the fees, sets their amount (Exhibit A) and provides the "ground rules" for their administration. Background. The Council adopted the MASP on October 12, 2004. As set forth in Chapter 9 of this document, the plan for financing public facilities in this area is an integral part of the MASP, and provides a detailed description of the transportation and park improvements needed to serve this area (including plan preparation), their costs and the method of apportioning these costs between development types. Chapter 9 of the MASP is presented in its entirety as Exhibit B of the attached resolution. (Note: Based on community-wide master plans, the Council previously approved area-specific fees for water and sewer improvements in the Margarita Area on April 16, 2002.) Proposed Fees. The recommended development fees are exactly as approved in the MASP and are summarized below. These were prepared in accordance with the stringent requirements of Section 66000 of the California Government Code (commonly referred to as "AB 1600"), which sets detailed standards for the preparation of development impact fees. ProposedArea-Specific Fees Transportation Park Plan Improvements Improvements Preparation Residential:Per-,Unit Single-Family Residential Properties Dedicating Park Land $4,787 $6,481 $161 Other Properties 4,787 11,223 161 Multi-Family Residential Properties Dedicating Park Land 2,900 4,823 153 Other Properties 1 2,9001 8,352 153 Non-Residential: Per 1000 S care Feet. Retail $22,165 $141 Office/Business Park/Light Manufacturing, 9,219 1 141 I- Margarita Area Development Impact Fees Page 2 Margarita Area Only. It is important to note that the proposed fees only affect the Margarita Area: community-wide development impact fees (which new development in the Margarita Area will also be responsible.for paying in addition to their area-specific fees) are not affected by the proposed area-specific fees. Effective Date. AB 1600 requires 60 days between adoption of fees and their effective date. Accordingly, March 7,2005 is the recommended effective date. Notification. In accordance with AB 1600 notification requirements, we have mailed notices regarding this hearing to all of the groups and individuals on our standard fee mailing list (about 60 of them based on their request to be included on this list). Additionally, we have notified all of the property owners in the Margarita Area. As of the date of report preparation, we have not received any comments regarding the proposed fees. However, these were extensively discussed and reviewed as part of the MASP adoption process. FISCAL IMPACT In accordance with City policy, adoption of the proposed fees will ensure that new development in the Margarita Area will pay its fair share of the facilities needed to serve it. Accordingly,there is no adverse fiscal impact associated with adoption of these fees. ALTERNATIVES Do Not Adopt the Fees. This will result in one of two impacts:no development will be able to proceed in this area at all, as there will be no mechanism for financing (and building) the public facilities needed to serve it; or the General Fund will have to subsidize the difference. Either of these two outcomes would be inconsistent with current City policies. Adopt the Fees at a Lower Amount. This would require General Fund subsidies. The impact would depend on the amount of the subsidy. Again, this would be inconsistent with current City policies. SUMMARY Adopting the proposed fees simply implements the financing program set forth in the financing plan included in the MASP,which the Council adopted on October 12, 2004. ATTACHMENT 1. Resolution establishing development impact fees in the Margarita Area for transportation and park improvements. G:Margarita Area Specific Plan/Council Agenda Report Fee,Fee Adoption,1-04-05 � - a Attachment 1 RESOLUTION NO. (2005 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING DEVELOPMENT IMPACT FEES IN THE MARGARITA AREA FOR TRANSPORTATION AND PARK IMPROVEMENTS WHEREAS, the Council adopted the Margarita Area Specific Plan on October 12, 2004 following extensive public hearings by the Planning Commission and Council; and WHEREAS, Chapter 9 (Public Facilities Financing) of the Margarita Area Specific Plan provides a detailed description of the transportation and park improvements needed to serve this area (including plan preparation) and their costs, along with the method of apportioning these costs between types of development; and WHEREAS, the development impact fees adopted by this resolution, which are set forth in Exhibit A attached hereto; are exactly the same as those included in the approved Margarita Area Specific Plan; and WHEREAS, the Council held a public hearing on January 4, 2005 to consider proposed fees in funding improvements needed to serve new development in the Margarita Area;and WHEREAS, the Community Development Director has determined that the provisions of this resolution are exempt from the provisions of the California Environmental Quality Act pursuant to Article 18 of the California Environmental Quality Act Procedures and Guidelines; and WHEREAS, the proposed fees comply with the provisions of Section 66000 of the Government Code(AB 1600). NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: SECTION A. FINDINGS 1. The purpose of these area-specific fees is to implement the goals and objectives of the City's General Plan and the Margarita Area Specific Plan, to meet the public facility needs of the Margarita Area and to mitigate the impacts of new development in this area, by providing a financing method for the construction and purchase of certain transportation and park improvements. The Council has determined that impact fees are needed in order to finance these facilities and improvements and to pay for new development's fair share in the Margarita Area of the construction or purchase costs of these facilities and improvements. In establishing the fees described in the following sections, the Council has found these fees to be consistent with the City's General Plan, and pursuant to Government Code Section 65913.2, has considered the effects of the fee with respect to the City's housing needs as established in the Housing Element of the said General Plan Land Use Element. 2. Area-specific development impact fees in the Margarita Area, whose boundaries shall be as defined in the Margarita Area Specific Plan, are hereby established as a condition of any new development for which any of the following approvals or permits is required- 1 - 3 Resolution No. (2005 Series) Attachment 1 Page 2 a. Approvals of land divisions pursuant to Title 16 of the San Luis Obispo Municipal Code, including approval of lot line adjustments, certificates of compliance, parcel maps, tract maps and condominium conversions. b. Land use approvals pursuant to Title 17 of the San Luis Obispo Municipal Code, including rezonings or the approval of development plans, site plans, minor use permits, variances, but excepting approval of San Luis Obispo General Plan/Land Use Ordinance amendments. C. Issuance of any occupancy permit or final building inspection. d. All other approvals of real property development, which approvals are subject to the jurisdiction of the City of San Luis Obispo and which approvals are subject to the exercise of the discretion of the Council, Planning Commission or Community Development Director. For purposes of this resolution, new development includes any change of use or occupancy which increases the traffic service requirements of a development. 3. There is a reasonable relationship between the types of development on which these impact fees are imposed, and the use of these impact fees and the need for the facilities and improvements. 4. There is a reasonable relationship between the amount of these fees and the cost of the facilities and improvements attributable to the developments on which these fees are imposed. The estimated costs of facilities and improvements, including financing costs, to be paid for by these fees is shown in Chapter 9, Public Facilities Financing, of the Margarita Area Specific Plan, which is attached hereto as Exhibit B of this Resolution. These costs have been allocated to new development on the basis of dwelling unit type for residential uses and building square footage for non-residential uses, which are reasonably related to the transportation and park needs of a development project in the Margarita Area. 5. The fees collected pursuant to this resolution shall be used only to pay for facilities and improvements identified in the impact fee analysis and shall not be in lieu of any other fee or tax as may be required by this code. SECTION B. AMOUNT OF IMPACT FEES Effective March 7, 2005, area-specific fees shall be in the amounts set forth in Exhibit A attached hereto. Unless otherwise acted upon by the Council, the amount of the fees will automatically be adjusted on July 1 of each year by the annual percentage change in the U.S. Bureau of Labor Statistics consumer price index for all urban consumers (CPI-U), all-cities average for the prior calendar year. SECTION C. ONGOING REVIEW OF COST ESTIMATES 1. At any time that the actual or estimated costs of facilities identified in the impact fee analysis changes, the Director of Finance & Information Technology (Director) shall review the impact fees and determine whether the change affectsthe amount of the impact fees. If the ,, - q i I Resolution No. (2005 Series) Attachment 1 Page 3 impact fees are significantly affected, the Director shall, within thirty (30) days, recommend to the Council a revised fee for their consideration. 2. At least once every five years, the Council will review the basis for these area- specific impact fees to determine whether: they are still reasonably related to the impacts of development; the facilities and improvements for which the fees are charged are still needed; and the cost estimates are still valid. SECTION D. TIME OF PAYMENT 1. As provided in Government Code Section 66007(b), the area-specific fees set forth in Exhibit A shall be payable prior to issuance of building permits required for that development and shall be collected by the Building Official. 2. For any development project or portion thereof, impact fees shall be assessed at the time of application and remain valid for as long as the application is proceeding through valid processing as per the Uniform Administrative Code. SECTION E. DETERMINATION OF LAND USE CATEGORY All determinations regarding the appropriate classification of development applications by land use category shall be made by the Community Development Director. SECTION F. EXEMPTIONS The fees established under this resolution do not apply to the following: 1. Other government agencies. 2. That portion of a structure which existed before the addition of dwelling units or the enlargement of floor area in a non-residential structure. If a structure is destroyed or demolished, and replaced within two years from the date of demolition, the impact fees shall be based on the service requirements of the new development less the service requirements of the development which it replaced. SECTION G. APPLICANT CONSTRUCTION OF FACILITIES If the applicant for approval of any development project is required by the City, as a condition of approval, to construct facilities whose cost has been used in the calculation of impact fees which apply to that project, the applicant shall receive a credit for that portion of the total fees otherwise payable that are attributable to those facilities. If the credit exceeds the amount of the impact fees due on the development, a reimbursement agreement with the applicant shall be offered. The reimbursement amount shall not include the portion of the improvement needed to provide services or mitigate the need for the facility or the burdens created by the development. f S� Resolution No. (2005 Series) Attachment 1 Page 4 SECTION H. LIMITED USE OF FEES The revenues raised by payment of these fees shall be placed in a separate account along with any interest earnings on that account, and shall be used solely to: 1. Pay for the design and construction, including, construction management, of improvements set forth in Exhibit B, or to reimburse the City for funds advanced from other sources to pay for said design and construction. 2. Reimburse developers who have been required or permitted to install portions of said facilities or improvements. SECTION I. FEE ADJUSTMENTS 1. Each development is independent and no reductions to impact fees will be transferable to another development nor will an excess be refunded. 2. Any person whose new development is subject to these impact fees may appeal to the Council for a reduction or adjustment of those fees, or a waiver of those fees, based on the absence of any reasonable relationship between the impacts of that new development and either the amount of the fees or the type of facilities or improvements funded by the fees. The appeal shall be made in writing and filed with the City Clerk, together with any required appeal fee, within ten (10) days following notification that the fee is to be imposed.. The appeal shall state in detail the factual basis for the claim of waiver, reduction or adjustment. The Council shall consider the appeal at an appeal hearing to be held within sixty (60) days after the filing of the appeal. The hearing may be continued from time to time. The decision of the Council on the appeal shall be final. If a reduction, adjustment or waiver is granted, any change in the permitted type or intensity of land use within the approved development project shall invalidate the reduction, adjustment or waiver of the fee. SECTION J. UNEXPENDED IMPACT FEE REVENUES 1. Notwithstanding Section C.2, whenever any impact fee, or portion of an impact fee, remains unexpended or uncommitted five (5) or more years after payment of the fee, the Council shall make findings once each fiscal year with respect to the unexpended amount. The Council shall identify the purpose for which the fee is to be used, and demonstrate a reasonable relationship between the fee and the purpose for which it was charged. The findings required by this section need he made only for monies in the possession of the City, and need not be made with respect to any letters of credit, bonds or other items given to secure payment of the fee at a future date. 2. The City shall refund to the then-current owner or owners of the new development project or projects, on a prorated basis, the unexpended or uncommitted portion of the impact fees for which need cannot be demonstrated pursuant to this section. The City may refund the unexpended or uncommitted revenue by direct payment, by providing a temporary 1 Resolution No. (2005 Series) Attachment 1 Page 5 suspension of impact fees or by any other means consistent with the intent of this section. The determination of the means by which those fees are to be refunded is a legislative act. 3. If the Council determines that the administrative costs of refunding unexpended or uncommitted impact fees pursuant to this section exceed the amount to be refunded, the Council, after a public hearing, notice of which has been published pursuant to Section 6061 of the California Government Code and posted in three prominent places within the area of the new development project, may determine that the said fees shall be allocated for some other purpose for which impact fees are collected and which serves the new development project on which the fees were originally imposed. SECTION K. SEPARATE ACCOUNTS The Director will deposit fees collected under this resolution in separate accounts as required by Government Code Section 66006. Within 180 days of the close of each fiscal year, the Director will make available to the public an accounting of these fees, and the Council shall review that information at its next regular public meeting. Upon motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted on January 4, 2005. Mayor David F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: Jonat . Lowell, City Attorney � � I EXHIBIT A MARGARITA AREA DEVELOPMENT IMPACT FEES Transportation Improvements, Park Improvements and Plan Preparation Effective March 7, 2005 Margarita Area-Specific Fees Transportation Park Plan Improvements Improvements Preparation Residential: Per Unit Single-Family Residential Properties Dedicating Park Land $4,787 $6,481 $161 Other Properties 4,787 11,223 161 Multi-Family Residential Properties Dedicating Park Land 2,900 4,823 153 Other Properties 2,900 8,352 153 Non:Residential: Per 1,000 Square Feet Retail $22,165 $141 Office/Business Park:/Light Manufacturing 9,219 141 r -g 1 m O m '� aa � ma ca x_ m m U) m �. m m w « : xmmXmamimE � ww- m am � 3 c c �- c ,� o c 0 N C 'a m e E c w m O =� m •gym m a N 0' m N d U N 01 Z V m w C w m L ° m m m E a) "Zi EEO of .0+ a Ul m L L C m O yCL CL 0 rL+ C m n a rn L O mLO 0 E U ` 4�-- O « N m U m > uJ 7 C y m uJ j m > E m « C O a U) a) Q m C m 0 m o ,6 m L m L a 7 ..: m O L m`' A U U 0 m 0 �6 n« m a T y L L N m O1 C ... 3 ` O `� C L G a. 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E U N 'o CaaY m +' � A ma 0- m w CA �-m- m m 3 � card E w m as ° am m m 3 m �Lm X3 � w c mQ aci W m E °-a c `o 0 0 Ea 0 c ui � v o ,cL m `or c m •� m cm a m -o aM m n n c c c m .3 m m m w m U m > c z m _ > m 3 E 3 m p m L6 ca m o - ® w ' m LL � � � w m twva >.:�mc m 3 aUi aZ a_ 0- > M E ,� E m 3 aci m d m m '� m 3 � o 0 m '° E m ° E °rn ma 3 w o m n� 0 .3�. o 0 0) 00. a C5 3 s� m e c c` vi m m maw m > > m m m E > a m `o a ° civ m y `� .° a > m > c E m � m m = a m > m m > m c o m c L = E m a c n m m � c m m m o o m 3 c w L m m n m oa m oa m1- ._ ._ rn m c ._: ma 3a ti Uma "w ° H ... nm H oD � x K W mmL m m m c tN c cin - m o ` a � _ . � m • C m IDGOV C m m y v3 m O) U m 30 mCD " rr. t °; a °�° m a oma Ear m E E u m = m0 Co m 0 m F e n CL et nm 'O cLia - e _ m 3t v w h N r > 3 .. o v � mwa � `° ow m ~ L m m m c � oLm. r .0a ( o � m -- O o 3 m . 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U n W m W ocWE3 nE � 'Z5CA M mN M , y '3 om oyai '� W °' o > 3 Co o ai LL E o N MV o CM Q8M cw y c m m o cg ` a c W ° c c co o :. � U ` Cw >. o E N m ma m ` W m 3 w E 0 -oaWw 0" mw E mo ma o y E p •m3 o asWD - c-4 . Qac. mm � C. c YNlpoo � C ` cmm � E � w ° nN � maMcd}M m > N > T N W m N a w "t E m O C m U .°.. :a j m 7 7 > m W p C >` O w m 'mO M N O i C w m '.' N V '� W W t/1 N ° a V U a E . N O (6 E p C a Z'_ �_''C >� f' W L N LL = O W G 8 a1 > = m C f0 C n• m C ° U ° V m+m. co a « C Y m m a. m N N G m W N CL M O R1 W C w m O m m t m > m W C p W M = W C t m m E N cAo C ': 3 n p m m .a0 > = O m r 'm �- owl 3 °; � Mw mH W Nw2vcA m c� Q 3 �° c LL u °UMQ ma E m 00 m_ `o x w a > cN cLt mm �m a_ mE m a'0 7 UUai 0w mo No ° w W7��.M Z mWm LEac l m m W w nN mn ., N N y W C ` 0 m •j n ° m N m Q m w a U m Q W O m N m m J 0 C N m W w n aA, O a a m 2 � _ W m X W >' � C CL Nc c ., W E3 S02 3: 3 c m m WE E w n " r co 0 N 0 E C m L O)� '0 �. 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N O > m n m U. aO .D '0 - L m '� m L `� ® C C w m LL N W m m O Of m a w ® Q E W ? a O W "' cc « W 0 N co N 5 � '� C Ca Oa W m M 3 •° c ._ N 3 C Ca U m m W m co C O m m C 3 •t U.� c o w •�' _ r a) O +N•• �. - C m C E 3 l6 > - W m m N C N C C m 0. - V m � W = m = c E m .0 Q m u O ` 3 ( a _p m ° m W '� m m ,m `m X a LL O)V �' N "' m W m .� a) m `� W (/lr m C ma nmL 3 3 m aN C13 v 5 m U c $ c Li m m cmc W -0 oo .o Ow EE c > Oz 3 .. O L O C Oat W () « L Q 1f) 3 U N C m .m- U m p m +. U O .G «. m = ._ _ ... +� _ - � m = C W > Adm = > d > AN m a.. QM H E 2E50 'U) w 3 W oi F— 3 0 � C.� m � � � v n3 H � O C •" '� W '� d Cl) m m -0cm c W W O m = m W Ea) 0 m W m U X U m C ° m V 0 _�_ O C y 0 y L .°+ y d m .� O .. C m rnL > O j 3 m 07•- W U 0 H m y m o C 'D m = j y C N 3 N m m a N Q m m O ( CL M LLA � � occ � � c � 75 Q m � > m � mmocthwc 2' 4m1 .. m m '� O m m O C •O a C o m m .0 00 0 _ . C m r U m C •' C M m 'm0 y 7 a .m, m ° E 0 O « m m '0 V r a N .0 r m w C�p — m ` T C m Q m m m 0 '� m C 0 y O m M U .-. U m n m m m m m e 'O W f�6 G L m m fl. C U {f m m m m E m E UAL m > ° am 2 0 mr- w C « m > O m E m Gm r2 W `0 '0 w 0 W m m m n W N -- m 0 O w C O C 0 m I.- C U .. G L 0� a_ C-4 7 IL � Q m m o ° E to a "' m m CL CL r ° � Q c �� 2i m m 0 ° (D r y m m O m °' m -0 "• Ul U U m m L �- ._, C m � 'C,am mymm co =- 'a � m70m mUrOCC GrO. = N �• 0 ¢ '00 U Z. E 'Com drn„" m m dO. m .r p .0 m 'U rn j 4) m mUv a0 m W Q cL Z. yQr O m m Ec LL m JQ :3 U c E m c m m m � F- Q '` a m r, aE U m C � m m os y 'E y � co rnE = m 0 c rnw OL m -•- 0 E O G �" o m � � mt m « m ui a16a- w cC �,� c m m H C 1=- E > 3 : m o m m m ti c y m w2 y W m •c 0 m o E m w E mQ 2 m m � CL� O c � � = m mit � c c m m my c c Q O U o 0 E m OM —J a > E ,v_ .. C 0 m m nE m m =- r m Z_ o � _ CL— 3: ,- -0 .0 0 m c O> 00 o . 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U m C n W O n m G w M (D •� V •- 0.3 •C m a U)0 E p G w °0 C O � t � � m. f`00 E-« m E C «-� � N > c� � m m ~ o n >. o E c W >: °Ow 3 vtc3 o o QEa of E v Q E mQ m m w E a c - > E o ' co W m � cQ c ` �` m �' o 'y c � � 0 m M :2 ,= > 0 C C m y E O n 01 U o Q a C U •C m C V m m ai V 2 "U W 3 Q O C 0 E O n° C m U - o m C C O C m C 0 m ~ Y ® 3 �= w G c rmQ E � .c .c mo �E > Cw cm d _am « m N ° mw E y m — ° G F C m '- m m m. U `m 'm0 O L Q H N m Q a >` 3 W. C' m G m to rn � E ° m "' m cWw µ- m EC °1 � o R yN Ew r m e a" d ° = m m C m 0_ C c 3 m -0 0 m C •� 'V m tm 0 �- m N C •• > 0-- y m 'O a m m O m Ow •-y .. "0F- m m N W o . a) � •C � � ~ C m ... 0 mw E '0L ® Q Q E 0f m G C c m 0 0 0 - m o• C ""' mQ m m m G +. -0 ,0 :� C +' •� M m > m m m 0 ,OO IX U 'O '0 m 0 7 -0 •0 - 0 w m c m m w •0 Q m U O W 'o •c m E E m a • 0 0 = ocz rn E o � � m c m i m + m UJ a G >.LL « m Q Q ° c -0 3 n L a = « 3 0) m m ` Q W m 0 W O C 'C � CM O a .•. .- 0 :5 0 O N m m U C C m m ° C. Z�aU- Qm om m Vm N yr.• mm Q! 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