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Home My WebLink AboutCC RES 88-149' Sl► • • • iTi � � A RESOLUTION OF TI-� CITY OCxJNCIL OF TfiE CiTY UF PALM DESERT, CALIFORNIA, C�ARIFYING `I'�� IN'I'F�]'I', NEED, AND ESTABLISHING THE NEXUS FOR TFiE DEVELOPMENT FEE REFERRED TO AS THE NEW CANSTRUCTION TAX. WF�RFAS, the City Council of the City of Palm Desert, California, ciid on June 13, 1974, establish a developer fee called the "New CorLstructio�� 't'ax" by adQpting Palm Desert Ordinance No. 35: ar�d W'�2E�S, said ordinance was amerided on October 25, 1979, establisltir�g the current rates of sai.d fee; and WHEREAS, said fee has always been utilized for the carLstxuction of or land acquisitioa� for public facilities of a citywide need; and W�FtEAS, the need for such a fee is based on the follawing findings: 1. 2. 3. 4. There are specific sexvices and facilities that a city is obligated to pr�avide on a citywide basis. Such services by their nature, scope, and size caru�ot aizd stx,uld rx�t be allocated on less than a citywide basis. Such services include, but are rr�t limiteci to cc�aitral l.i l��.riries, civic center, city park develop�r►ent. New developments impact the ability of a city to pravirl� Su� facilities in the nu��ner and level of quality desirecl. 5. The mQst equitable mettx�d of assuring that citywic3� �n �l � i. ic f:,- �� i i. ties mai.ntain the level of desired effectiveness is a fee �� t:hose develo�cnents which will i�act them. 6. New develo�its increase the demarx3 for and tlius tl�� size :��1 cost of providing such sexvices as recreation, library, iik�i�iteti��-��, arui ac�ninistxation. 7. Palm Desert has through its general plan, civic c�.��F�r. mast �,� pl�i, city specific plans, and various stuciies ide�ZtifiE�r] thos!� ��ublic facilities alluded�to herein. ' 8. The city in developing any public facility for its citizens �,��il, if possible, develop these facilities as efficiently a��c3 effecl ��. ��l.y as possible. �zern�ore, the city intends to avoid a public fa� • �.lities 9aP• . 9. It may be necessary in order for the city to accanplis}i findi � x� 8 and avail itself of econanies of scale in constxuctir�g varioi�� ublic facilities to advance project fluids fran the general fund. �� such instances the city' s general fund contribution st ial l 1� cons i�� d an 0 �. c • iiESOLJ,TrICN,I�A. 88-149 � advance or loan and the new construction fea shall repay the gerieral fur�d. 0 10. The follawing facilities are of a citywide service r�ature tt�at are necessary in order to ma�ritain the quality of life desired by the citizens of Palm Desert. In addition as population, Yx�tti permanent and temporary, increases in Palm Desert these facilities must be expanded accorduzgly. A. Civic Center. i. City Yard ii. Park iii. City Hall iv. Library v. Sheriffs' Substation B. Parks praviding citywide recreational opportunities. NOW, Tfi�2EFORE, BE IT RESOLVE� based an the above findings tt� Palm Desert City Co�uricil adopts this resolutioaz clarifyi.ng ttie purpose of tt�e f� ca�a�anly referred to as the new construction tax ar�d fulfilling the requirc��ts of AB 1600. BE IT F[JRTI-IER RESOLVID ttiat t,�ie staff report dated 12./08/(3f3 s}�all be attactzed hereto as exhibit A and tt�e procedure setforth tt�ereiri to in�lelnent AB 1600 shall be put into effect no later than January l, 1989. PASSID, APPROVID and ADOPTE7] at a regular meetirx� of ttie Pal�n l�sert City Council held on this 8th day of December, 1988, by the follawing �rote, to wit: AYFS : BE�ISON, KEI,LY, SNYDER, WILSON NOFS : NONE ABSF�IT: Q2ITES ABSTAIN: NONE ATTFST: �' ��-a l�� HEILA R. GILL, , City � k C3.ty of PaLn Desert, Cali� rnia /� � � S. RL7Y WILSUN, Mayor � , i � � � �� ►��C•�1�� v � : : ► �_ � (�ty of Palm Desez-t City Nk�zager and City C�il Assistant City M�nager/Director of Canrn�nity Develo�lt �• �: - .- •:: � i' � .�• California State As.�nbly Bill 1600 requires that certain �Ynental fees conform to specific p�nce.sses. •: .�• The measure does rx�t apply to all city fees. For the puYposes of AB 1600 fee means: "A mo�7etazy exacti�, othe.r than a tax or special assessnPnt, which is . charged b� a, local agerlc.�y. tA .the. applica�t in .cor�nectirn. . with .. .... - �. � approval bf a� developiient project for the puipose of defrayirx� all or a portion of the oost of public facilities related to the d�v�elc�ment Project but doe.s rx�t include fees specified in Sectian 66477, fees for processing applicants for gave.rnnental regulatoxy acti�s or approvals, or fees collected iu�der develognent agreemP.nts..." The legislation is limited to those exactions used to provide public facilities. Secti� 66477 relates to fees for park and recreatioc�al purposes; therefore, in our case the fees that are effected by AB 1600 are: 1. The new cac�structiori tax. 2. Fire facilities fee. 3 . Drairiage fee. 4. Signalizatioaz fee. 5. Art in Public Places fee. 6. FY�inge-t�oed lizard fee. Any new cle�velc7pnent fee ti�e city may wish to impose after Januazy 1, 1989 per SectiaaZ 6600 must: l. Identify the purpose of the fee. 2. Identify the use to which the fee is to be put. If the use is fin�r�cing public facilities, that identification �, but rieed n�ot, be made by refere,��ce to a capital improve�ment plan, � be made on applicable general or specific plan requireme�lts, or may be made in other public doc�.unents that identify the public facilities for which the fee is charged. 0 « �• ►• r�• � �� y ; M� .�� a�a : a�• : • :: 3. Deterntis�s haw ti�e.ze is a rea_��able relati�ship betw�een tt�e fee's use and the type of d�velop�nt project ori which the fee is aa�ased. 4. Determirle how tt�ere is a reasonable relatio�ship betw�een the nsed for the public facility and the ty� of develag�nt project oaz which th�e fee is imposed• Ariy action u�osi� a fee as a�itioa� of appinval after Jaiwazy i, 1989 must have �strated "haw the.re is a reasoa�able relatioc�sh.ip betw�een the amo�urt of the fee and the cost of th+e public #acility or portion attributable to the develc�t�nt o� which the fee is i�osed. F�arthernbre, tt�e AB 1600 requires that the funds collected be exper�ded within five years of collectioa�--batz�ing specific find.ings to be made oci a year by year ( fiscal year ) basis to carty ttie fund..s aver. As stated earlier the Palm Desert fees that fall tuxi�x AB 1600 are: A. New corlstcuctiaz tax. . . . : . B. Fire Facilities fee. - . . , . . .. . � � . . . - C. � Dz'aiilage fee. � - . D. Signalizatian fee. E. Arts in Public Places fee. F. FYinge-t.oed lizard fee. New Constxucti� Tax The new oonstruction tax was established by ordinance in 1974. The ordinai�ce was revised in 1979. The fee is as follaws: A. For each dwellirx,� wnit a single-fami.ly, aoc�daninium, apart�nent ca�lex, multi-t�a�elli.� �txucture, or in a h�tel or in a cbzmitory, forty cents per square foot of gross building area under roof, excludirr3 accessory structzues or areas such as carports, garages, reareation buildirx�s. B. For each trailer space, three hunc��ed dQllars. C. For each tmit or structure in an ir�diastrial of sexvice uxlustrial ux�e five cents a square foot of gross building area. D. Al1 others, forty cents a square foot gross buildir�g area. The fees collected in the past were utilized for projects of city-wide significai�ce. The city hall, city hall remodeling, library, land acquisition in the rr�rth sphere . 2 « �• ►• r�• • �� « , .�� :+a• : • :: The type of facilities that the fund is u_sed for are of a citywide significance or be.r�efit. As new developme.�it occurs existirx� public facilities of citywide nature require modificaticaz or expailsi� in a vexy direct relationship. In ordex to ac�te development 3Ild ac,_��r@ ourselves that the public facilities will be available within a reaso�able t�me of de�narx3 ttue city may use ot.�er revenue so�mes to take advantage of econanies of scale and awid a public facilities gap. Use other sour�ces of revenue wi.th the idea of repaying thr�se accaurts when the revenue is raised. In the future, tt�e r�ew ooazstruction tax will cantinue to be u�sed for capital projects of citywide significar�ce. This is fair because it is i�o�ed on infill as w�ell as d�velogt�nts in outlyirig areas. The projects that th��e funds will offset sane of the oost of include: 1. LibraYy. 2. City yard. . . . 3. Civic center develc��nt. , . . � � . . � � . . . � In tenns of projected revenues it appears that this fund will raise betw�n $6 and $7 millioci at total buildout. This projectiori is based ort an additi�al 5000 dw�ellirr� units at an average size of 2000 square feet; with the recnajruier geryerated }�y camtiexcial develogn�ent. The capital projects mentio�zed will obviously oost more than the revenue's which are projected. This should be the case, for the purpoae of this fee is to offset the impacts of new devel�lts on city-wide infrastnicture not defray ttye entire exper�clitur�e. The use of a square foot fornnul.a is directly related to dgnar�d generatiori as well as ability to pay. Ge.r�erally, the smaller th+e unit, the fewer the occupants, and thus the lower the demand or impact on given pub�ic i.nfrastructure. The city had adopted a civic center master plan, with various citywide facilities p�ojected. A. Park. B. Librazy. C. Sheriffs' substaticn. D . Barxi shel l . E. Open activ�e and passive recreation areas. F. City yard. G. City hall. 3 N �• ►• t'�' ' �� M • ! M� • ►i �.?�''J :'J�' i •:: The plan's implementation cost will exceed $40 millioaz. The facilities oontained within the civic center have a citywide rleed or service area. There is a direct aorrelation to the size of these facilities to the size of populati�•(both temporary and full-t�me) and the desired quality of service. Therefore, the use of this type of fee to offset the aost af sezvicing additic�nal demand generated by n�w develognent is a fair and equitable manner of offsetting this additional burden. No agen�cies plans can be limited to a specific series of pmjects. As time passes the needs for other facilities of citywide significance may be iclentified as ttie city expands. In such case..s, iyo�wever, tr�e alr�.ady pre.sent wvuld have ooritributed to the facilities clevelopnent through general fund revenues ( sales, transient occuparx.y, busine.ss licen,se, etc. ). While new develcypnent would ooritribute their share of the facilities thiro�ugh the netiv ca�..struction fee. In orde,r to meet the requirements of AB 1600 as it relates to thts, paxticular , develc�ment fee it. is , suggested ;that� the ; follu�t�tiyg p�ooec�ure be establistyed. It shaikd be.. rxited that scme parts of this p�mcedure are already in place. A. All fees generated fran this fee shall be designated for projects of citywic�e significance. Presently these w�uld ii�lve: 1. Civic Center Site. a. Librazy. b. Park. c. City hall. d. City yard. 2. Land Acquisiticn for Citywicie Facilities. B. All fees collected shall be identified as to date of collection to assure theeir use within the five year t�me frame. C. Any general fund rev+enues used to develop the civic center site would be reimburs�ed by this fee. D. The ftux9s form these fees wr�uld mt be used for neighborY�ood facilities. E. Prior to any projects being ac�ded to t�e new cc�nstructioci fee fina�ticir�g mechanism a specific fir�cliru� will be required by the city oouncil th,at tYbe particular project is of citywide need and service area. 4 M '• �• !'�• • :� M •• � M� •�� I� �� :+�' I • : S Signalizatioan Fee The sic�alization fee was established in May, 1978, by Resolution No. 78-58. The purposes of the fee are to: 1. C�eate a m�re equttable distributicr� of signalization oosts. 2. Assure the availability of riecessary ftn�ir�g whe.n warrants are made for specific intersectioaz signalizati�. Equitable distributioai of costs. Traditio�ally the oosts of signalizatioci were borr�e by ttyose who d�velc�peri at intersections. The City of Palm Desert reoognized that such an approach was not equitable, because traffic volumes that may warrant intersection signalizati� are rbt gen�e.rated by tr�ose who develap an aorners. Requiring all who clev�elop to c�tribute to signalizatioaz funding is, tix�rrefore, the fairest metlx�d of distributing signalization costs. Flarthe,r, : traff�c genexated .by de�rr�lc�pment in �e • area o��• the citY �Y. �Y w�ell in�act an intersectio�i in anothex portiocl of the city. Inc7eed, traffic flaws throughout the community and while a signal may r�ot be required in the i�iate area wh�re development occuis, thsre is a city-wide r�2xus, or causal relatiori between developnent and the need for signalization. I-I�w�ever, it should be mentioned that signalization fees are rx�t the sole source of traffic signal fi.mdiz�g. Since inaorporation thou.sand.s of cbllars have been spent from gas tax and general fund revenues to help aoa�struct the present city signalizatioaz system. The vast majority of signalization projects in the future will occ�,Lt� in the r�orth sphere. Ttye area r�orth of Camtxy Club Drive betw�een Montex�y Averuie and Cook is primarily vacant. Develognent in this area will be the direct cause for traffic signals and their funding. The follawing intersections will scmeday require traffic signals. Nba�terey - Gerald Ford Nbnterey - Dinah Shore Portola - FYank Sinatra Fortola - Havley Ga�k - Gexald Ford C`.oak - FYank Siriatra CAoI{ - Hovley C.00k - Dinah Shore 5 M r. r. .,� M �• � M� •�� 9ry :��' � : : The total c7ost of ti�e.�e FLtture �lc�xnent within these oosts. Availability of Ftuxlir�g signals will rar�ge fmn $800, 000 to over $1 millioa'i. the n�orth spi�ere area will pay the prepor�dPxanc.e of This leads us to the seoo�xi rea,gori for signalizati� fees, the ass�irarlce of available fundu�g whe,n the rieed for a traffic signal oacvrs. Signalization fees from the ryorth sp�7ere area sixxxld go directly to furx3ing future signals in the area. Z7yoE'�e sic�als hav+e been identified above. In additian, the follawir�g intersectio�ns may in the ne,xt 20 years require signalizatioci: God{ - Pbrtola - Portola - Portola - Poxtola . - Nbritei'�y ' - I-10 Ramp Fairway Haystack Rutledge f Mag�.�esia Falls I-10 Ramp G�rrently, the signalizatioaz fund oontains sane $500,000 of which approximately $300,000 has beeri generated via signalization fees. � The signalization fees generated by develogrient sauth of the Whitewater shauld be identified for these signals. This is ba_sed an the follawir�g: A great deal of development will be oatmercial activities of a variety that sexvice the entire city. As such traffic volume..s oould be effected an north-south, east-w�est corridors. In effecting ttx�se traffic volumes there is a direct correlation between these c�evelopnents' is�act to generatirr;� the need for these signals and, therefore, their respon.sibility to offset the aost of signalizatiai. Drai.nage Fees Drainage fees to offset the oost of city drai.nage facilities w�e,re originally established by the city in 1979 through Ordinance No. 218. The fee implements tiie differexit master plans of drainage in ttae city. The fee is b�sed az ti�e oosts established to develap major c�ainage facilities within specific areas of ti�e city. The fee has been augmented by the use of redevelo��ent funds within identified redev+elopnent project areas. The cast is tt�e,n spread � a per acre basis within identified drainage areas. C� M r. ►. • i� M •• I M� •�� I y�y :+�' I • : : The ne,xus ar relationship of the r�eed for the facilities and develc�ient is vexy clear. As vacant land is dsveloned, regardless of the intensity or type of clevelc�ment potential flood and nuisanr.e water must be diverted to protect the site and charu7eled fran the site. It is the clev�logne�it ryot tize ty��e that generates the ryeed; therefore, a fee based oaz acreage rathex than intensity of use is apprnpriate. Because the city is divided into distirbct drainage areas, f�d.s genPxated by a given dev�elc�xnPnt are utilized for the bei�efit and to offset the ic�act cau_sed by tY�e dev�elcypner�t. As the case in other fees for public facilities identified in this report, it is rvecessaYy from time to time for other revenue saair,es to be used to achieve eooaxxnies of scale, as w�ell as assur�e orderly dev�lo�xn�nt. In such instances the drairiage fees may be u..�ed to repay a given general furid acaoiuit. Without drainage fees the desired level of flood and nuisanrz water protection oould not be efficiently or ecor�aatcally achieved. The draYnage projects�which will be required by the city have been identified. .�. in adopted master drainage plar�s. Fire facilities, art in public places, and frir�ge-toed lizard fees currently meet the requirements setforth in AB 1600 and rx� furti�er resolutions are required• t F� J ?7 • �'�t�I• %� ' RANI�N A. DIAZ ASSISTAIVT CITY IRECPOR OF O�NITY DEVIIAP'N�fP /� CITY COUNCIL ACTION: APPROVED �--� _ DFi:IFU ___________ RECEIVED ---.._.__. ' _' _ _ -- -- -- � - --- - - - � -- - - - --- --- . U!EETING, D"._� �=Z �:f�� ,_:..__ .. A`TES `,c�-;, }� �•r � i s�;c��' T��`��-- NC!t_S: y� �r_�:f;.,�.__. . _ - --- !-1`.]:i��`L' : iJ -�� - -;�j - . __._ .----- AC�S'Cti7:'� : "� � ��j /,� .. . �----�- ---.-.._.. --- ' VE22ZFI�;ll L'.: : �.�_� -- - -- ._- - Original on l,�i_�-t�...�il _`-�,y .1 ;.1��'c' s Ofi�� 7