HomeMy WebLinkAboutCC RES 88-150• .1
WHEREAS, the need for surh a fee is based on t�ie follawi��y fi.nd ����a^:
W�EREAS, the City Council of the City of Palm De�ert:, C'�LifoY�����, did iii
May, 1978 by Resolution No. 78-58 establish a develoFm�e��t fee �-alled a
signalization fee; and
WHEREAS, said fee has been used to offset t�ze cast of Pa]��� llesert's
traffic signal program; and
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RFSOLiJPIC�1 ND. 88-150
A RFSOLUTION OF Ti-� CITY CJOUNCIL OF THE CITY OF PAL[••1
DESERT, CALIFORNIA, CLARIFYING THE IN'PENT, NFE�, ANi)
FSTAHLISHING THE NEXUS FOR Tf-iE DEUEIAF'MENI' FEG REfT:R�ZEID 1C)
AS Tf-� SIC,�VALIZI�TION FEE.
There is a need to assure the availability of aci�vl>>�te f>>� �- �� ��g when
warrants are made for specific intersection sigriali�atioa�.
Such funding should be equitable in its generation.
Traffic generated by development in orie ar�:� may �������ict a►i
intersection in another portion of the city.
4. The majority of future signalization projects w.i_11 �.v•cur ��� -�1_eas of
the city that are currently undeveloped, t] n��; �-� r�. � l���� a. , Y ci irec; t
nexus between future develo�znent and sigc �a 1 i�, � L i c» � � �� �. �c3s.
5. It is Palm Desert' s intention to avoid a sigi �<i 1 i 7�� t i��, i ga� �.
6. It may be necessary in order to accai�lish fi�uiiix� 5�u�cl �� �� i .i tsel f
of econanies of scale in signalizati� constzuction for F':� � m Deser t
to advance fun�3s from revenues generated outsic3e of sic��,�,� izati��n
fees. In such instances the city's oontriY�uti.ori �t»] 1 be� ����icier�ci
an advance or loan and the signalizatiori fee �;tiall ���E�ay tt�e
appropriate fund.
7. The follawirig are t,he currently identified i�ituxe �;iy��ls, •}�ict� m�y
be expanded frocn time to time:
a.
b.
c.
d.
e.
f.
9•
h.
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1.
m.
Nbnterey Avenue - Gerald Ford Drive
Nbnterey Avenue - Dinati St�re Drive
Portola Avenue - Frank Sinatra Drive
Portola Av�enue - Gerald Ford Drive
Portola Avenue - Hovley Larie �
Cook Street - FY�arilc Sinatra Drive
Cook Street - Havley Lane
Cook Street - Dinah Stiore Drive
Cook Street - I-10 Rat�
Portola Avenue - Faixway
Portola Avenue - Haystack
Portola Avenue - Rutledge
Nbnterey Avenue - I-10 Ramp
RFSOLL*PIC�I I�A. 88-150
NCJW, THEFtEFbRE, BE IT RESOLVID based on the above findir�qs the Pa 1 m?�esert
City Council acbpts this resolutian clarifyirx� the purpoCo of t t�e fee �� r�monly
referred to as the signalization fee and fulfillii x3 tl �e z EY �, � i.reme� � ��; of AI3
1600.
BE IT FIJRTfiII� RESOLVED that the staff report ciated 1?./�F3/88 s-l��ll be
attached hereto as exhibit A and the procedure setfort2� tl�ereiii to in��1� �i��it AS
1600 shall be put into effect no later than January 1, 1989.
PASSID, APPRC)VID and ADOPTID at a regular rneeting of the }'alm Dc��-��r t City
' Cbuncil held on this 8th day of December, 1988, by the follawi�x3 vote, t.o wit:
AYES : BII�ISON, i�LLY, SNYDE�t, WILSON
' NOFS : NONE
ABSIIVT: CRITFS
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ABSTP►IN: NONE
ATTFST:
SHEILA R. (}I�IGArT,
Gity of Palm Desert,
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Clerk
S. RC7Y WILSUII, t•L-�•yt �r
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(�,Ly of Palm Desert
T0: City Manager and City Council
FRCM: Assistant City Manager/Director of Canrnuzity Develogne�zt
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California State Assembly Bill 1600 requires that certain gpavex�mental fees
oonform to specific pr�ocesses.
AB 1600
The measure does not apply to all city fees. For the paa�poses of AB 1600 fee
means:
"A moa�tary exactioan, other than a tax or special assessnent, which
is ct'�arged by a local agerx,�y to the applicant, in oazr�eCtioa� with. .�. ...
� � appi-�ovaT of a clevel�lt project for �ti�ie purp�e of d�efrayirx,� all or �
a portioaz of the cost of public facilities related to the cl�velopm�zt
Project but does n�ot include fees specified in Sectian 66477, fees
for processing applicants for govern�nerital regulatory actions or
appravals, or fees aollected under develo��ent agreements..."
The legislation is limited to those exactions used to provide public
facilities. Section 66477 relates to fees for park and recreatiocial purposes;
therefore, in our case the fees that are effected by AB 1600 are:
1. The n�ew c�struction tax.
2. Fire facilities fee.
3. Drainage fee.
4. Signalizatioaz fee.
5. Art in Public Places fee.
6. FY'iryge-t.oed lizard fee.
Ariy n�w clev�lognent fee the city may wish to ic�ose after January 1, 1989 per
Secti� 6600 mu.st:
1. Identify the p�pose of the fee.
2. Identify the use to which the fee is to be put. If the use is financing
public facilities, that identification �, but need rx�t, be made by
referenc,e to a capital impraveme�zt plan, � be made oaz applicable general
or specific plan requirements, or may be made in other public doclunents
that identify the public facilities for which the fee is chai�ged.
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3. Detetmine how there is a reasonable relatianship betw�e.n the fee's use and
the type of clevelapment project on which the fee is �osed.
4. Detern�ie haw ti�ere is a rea9onable relationship between the rieed for the
public facility and the type of developnent praject oaz which the fee is
imposed-
Any actior� in�osir�g a fee as a coa�ditio� of appraval after January 1, 1989 crnast
h,ave d�strated "haw there is a rsasonable relatice�..�hip bet�ree.n the amount of
the fee and the aost of the public facility or portioal attributable to the
developnent � which the fee is iitq�osed.
Furthermore, ti�e AB 1600 requires that the ftuuis collected be exper�ed within
five years of oollectioaz--barring specific findir�gs to be made oa� a year by
year ( fiscal year) basis to carry tiye fund.s aver.
As stated earlier the Palm Desert fees that fall unc�er AB 1600 are:,
A. New o0t�stxuCtion tax. . . . . .
H. Fire Facilities fee. � � �� � � � � •
. . C. . , Dra.ir�age •fee'. . � � .
D. Signalizatic� fee.
E. Arts in Public Places fee.
F. FYinge-t',oed lizard fee.
New Co�lstruction Tax
The n�w a�uction tax was established by ordinance in 1974. The ordinance
was revised in 1979. The fee is as follows:
A. For each dwellir�g unit a sir�gle-fami.ly, �LiLun, apartment crn�lex,
multi-dw�elling structure, or in a 2r�tel or in a cbrn�itory, forty cents per
square foot of gross building area under roof, e,xciudirx� accessozy
structures or areas such as carports, garages, recreation build�rigs.
B. For each trailer space, three hundred dollars.
C. For each unit or stxucture in an industrial of service i.r�du,strial zoaYe
five cents a square fo�t of gross buildirx,� area.
D. All others, forty cents a square fo�t gross buiiding area.
The fees collected in the past were utilized for projects of city-wide
significance. The city hall, city hall recr►r,�}eling, library, land acquisition
in the rnrth spher�.
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The type af fa�cilities that th�e ftu�d is u_sed for are of a citywide significaryce
or benefit. As new develapmer�t occuYs existing public facilities of citywide
nature require modificaticn or exparLsioaZ in a vexy direct relationship.
In order to acocYnnodate develop�nt and assvre ourselves that the public
facilities will be available within a reasoc�able time of demarld ths city may
use other revenue sources to take advantage of econanies of scale and avoid a
public facilities gap. Use other scx�.m�es of revenue with th�e idea of repaying
thoae accoiants wh�� the revenue is raised.
Yn tile future, the new construction tax will oontinue to be used for capital
projects of citywide significance. This is fair because it is impoC,�ed cn
infill as woell as devel�lts in autlyir�g areas.
Ttbe projects that tYyese fw�cls will offset some of the aost of izyclude:
1. Library.
2. Gity yard. . . : , . .. . � . : .
3. Givic center dev�elc�cnent. - ' . . : . • . . . .
In teim� of pmjected revenues it ap�ears that this fund will raise between S6
and $7 millioci at total buildout. This projectioaz is based vn an additional
5000 dw�elling units at an average size of 2000 sguare feet; with the r�nainder
generated by cam�excial developnent.
The capital pmjects mentiorzed will obviously oost irore than the revenue's
which are projected. This shauld be the case, £or th+e pauu�x�se of this fee is
to offset the i�acts of n�ew develc�ne�ts an city-wide infrastYucture rx�t
defray the entire experldi.ture.
Tt�e use of a square foot fornnil.a is directly related to �xi gex�exation as
woell as ability to pay. Generally, the snaller tt�e unit, the fewer the
occupants, and thus the lower the demand or impact on given pubiic
infrastructure.
The city had adopted a civic center master plari, with variaus citywide
facilities projected.
A. Park. �
B. LibraYy.
C. Sheriffs' substation.
D . B3i�d shel l .
E. OpP.n active and passive recreation areas .
F. City yard.
G. City hall.
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The plan's implementation cost will exceed S40 million. The facilities
contairbed within the civic center have a citywide r�eed or service area.
There is a direct correlati� to the size of these facilities to the size of
p�pulaticez -( both t�q�orary and full-time ) and the desired quality of service.
Therefore, the use of this type of fee to offset the cost of servicing
additional demand generated by new develogne�it is a fair and equitable maruzer
of offsetting this additional burden.
I�10 agencies 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 the city expands. In such cases, h�awever, those already prrsent
wr�uld have c�trib�ted to the facilities develognent through general fund
revenues (sales, transient occupancy, business licen.se, etc.). tr�ile new
developnent would ooritribute their share of the facilities thn-rugh ti�e new
co�structiori fee.
In ordex to meet the requtremesits of AB 1600 as it relates ta this particular
developmP.nt fee it is suggested tY�at� tile• £p1Yr�wirx3 'p�Oc�re tie established.
... It� shaulci �be r»ted that some parts of this procedure are already in place.
A. All fees genexated frcm this fee shall be designated for projects of
citywide significarbre. Presently these would involve:
1. Civic Center Site.
a. Library.
b. Park.
c. City hall.
d. City yard.
2. Land Acquisition for Citywide Facilities.
B. All fees collected shall be identified as to date of oollecti�n to assure
thsir use within ti�e five year time frame.
C. Any general f�d revenues used to develop the civic center site would be
re�..�ed by this fee.
D. The funds form these fees would nc>t be used for neighbori�ood facilities.
E. Prior to any projects being added to the r�ew ooa�.struction fee financing
mechanism a specific firidirig will be required by the city oo�u�cil that the
particular project is of citywide need and service area.
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Signalization Fee
Tl�e signalization fee was established in May, 1978, by Resolutiori No. 78-58.
The piuupos�s of the fee are to:
1. Cxeate a more equitable distributio� of signalizatioai oosts.
2. Assure the availability of necessazy funding when warrants are made for
specific intersectioal signalization.
F,� �; table distributioa'i of costs .
Traditioa�ally the costs of signalizatioaz were borne by those who develaned at
intexsectioa�s . The City of Palm Desert reoogrLized that such an app�nach was
not equitable, because traffic volumes that may warrant intersection
signalizati� are not gene.rated by thase wi�o develop az con�ers. Requiring all
who develop to ooa�tribute to signalizati� funding is, therefore, tiye fairest
method of distributing signalization costs.
Ftar.tY�er,:-traffie genex�ied�by cie�teTopt�en� in o�e area of the city inay vexy w�ell
isi�act an intersectioaz in anothex portion of the city. Incleed, traffic flaws
throughout the community and while a signal may not be required in the
imz►ediate area where developnent occurs, there is a city-wide r�exu.s, or causal
relation betw�iz develo�xnent and the need for signalization.
H�xa�vex, it shauld be mentioned that signalization fees are r�ot the sole so�rce
of traffic signal ft.mdisx,�. Since in�corporatiori thou.sand.s of dollars have bee,n
spent fran gas tax and general fund revenues to help �uct the present city
signalization system.
The vast majority of signalization projects in the future will occ�ir in the
north sphe.re . The area north of Countxy Club Drive betw�e,n Moa�tex�ey Avenue and
Cook is primarily vacant. Develogn�xit in this area will be the direct cause
for traffic signals and their fund.ir�g. 'I�-�e follawing intersections will
saneday require traffic signals.
Nbnterey - Gerald Ford
Mo�nterey - Dinah Shore
Portola - FYank Sinatra
Portola - I�ovley
C'.oak - Gerald Ford
Ga�k - FYank Sinatra
Cook - Hwley
C',00k - Dinah Shore
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The total oost of tt�Se
F�ture develapnent within
these oosts.
Availability of Fluiding
signals will range frcm $800, 000 to avex $1 millioa�.
the north sphere area will pay the prepor�derance of
This leads us to the seoond reagori for signalization fees, the assurance of
available fundu�g when the need for a traffic signal occurs. Signalization
fees fran the north sphere area should go directly to f�xJ future signals in
the area. 'I�se signals have beeaz identified above.
In additiori, the follawing intersections may in the next 20 years require
signalizatioaz:
aoo�c
Fortola
PortAla
Portola
Portola
Nloriterey
- I-10 Ra�
- Fairway
- Haystack
- Rutledge
- , Magn�esia Falls
� I-10 Rainp �
G'�rrently, the signalizatioaz fund coaztains some $500, 000 of which approximately
$300,000 has been generated via signalization fees. '
The signalizatioaz fees generated by develognent south of the Whitewater shauld
be identified for these signals. This is based o� the follawing:
A great deal of development will be camiercial activities of a
variety that service the entire city. As such txaffic wlumes oould
be effected o� rx�rth-south, east-w�est corridors. In effecting those
traffic volumes there is a direct correlation between these
developn�szts' in�act to generatir�g the r�eed for these signals and,
tt�exefore, their respcxlsibility to offset the o�st of signalizatian.
Draii�age Fees
Drainage fees to offset the oost of city drainage facilities wPxe originally
established by tiae city in 1979 through Ordinance No. 218.
The fee implements the different master plans of drainage in the city. The fee
is ba.sed on the oosts established to develap major drauzage facilities within
specific areas of the city. The fee has been augmented by the use of
redev+elognent funds within identified rec�evelc�ment project areas. T!'�e cost is
then spread � a per acre basis within id�entified drainage areas.
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The r�Ls ar relatioc�.ship of the n�ed for the facilities and dev�elopment is
v�xy clear. As vacant land is developed, regardless of the intensity or type
of dev�elagnent potential flood and nuisance water must be diverted to protect
the site and channeled frc[n the site. It is the �lopnent r�ot the type that
getlerates the rieed; therefore, a fee ba.sed on acreage rathe.r than intensity of
use is ap�riate.
Because the city is divided into distinct drainage areas, funds generated by a
given clevel�zt are utilized for the benefit and to offset the impact cau.sed
by tt�e dev�elog[tent.
As the case in other fees for public facilities identified in this report, it
is necessary fran time to time for other revenue sources to be u_sed to achieve
eoocxmies of scale, as well as assur�e orderly developnent. In such instar�ces
the drai.r�age fees may be u��ed to repay a given general fund account.
Wittnut drainage fees the desired level of flood and nuisance water protectiori
aould not be efficiently or ecomnically achieved. •
��� The � drainage proj`ects which will be � requ:ired b� the city have been identified . .
in adopted master draiuzage plans.
Fi.re facilities, art in public places, and frir�ge-t-.oed lizard fees currently
meet the requirements setforth in AB 1600 and no further resolutions are
required•
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RAN1�N A. DIAZ
ASSISTANr CITY IRECPOR OF OCNNI�JNITY DEVEL�OPi�1T
/�
CITY COUNCIL ACTION:
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