HomeMy WebLinkAboutCC RES 88-151� �
R�SO�dTrIC[�I NO. 8a-151
A RESOLUTION OF THE CITY QOUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, CLARIFYING THE IMI'EN`P, NEE;i), AI�IU
FSTABLISHING THE NE��US FOR THE DEUELOPNIQV'I' FEE I�F'EP.fti:� TO
AS Ti-IE DRAINAGE FEE .
WF�, the City Council of tlie Gity of Palm Desert, California, ciid in
1979 establish a develo�r�t fee called a drainage fee; a�x3
WHEREAS, said fee has been used to offset the aost of sto7�n drains
identified by Palm Dese.rt's Master Plan of Drainage; and
h�.S, the need for such a fee is based oaz the follawing firidiix,�-:
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As vacant areas develop they must be protected frun f_ �� � Y1 ar�d
nuisance wate.rs draining to the site.
As vacant areas develop they create storm and nuisa��<-� wat��� r uix�ff
by reducing the area that can absorb such waters an site.
3. The most efficient and eoor�anic maruzer to protect ful ��r.� dev�� �' I rTIE.'I1tS
and mitigate the water runoff they ge�ierate is thro���,f� the
i�le�►entation of Master Drainage facilities.
4. It is developmerlt itself that generates tt�e neec]� l��r.ein ��� ••��r..i.t�ed
and, therefore, a fee based on acreage is tt�e most ec�uitabl�� n<<�u�er
of determinuig said fee.
5. The master drainage facilities have been ide�r�ti£ieci �n acbpt���I tlaster
Plans of Drainage adapted herein by reference.
6. It may be necessazy in order to acca�lish Ord�rl.y c��velop��� ��f:, and
efficient construction of draiiiage facilities, as 4��11 .�•• �vail
itself of eoonanies of scale in drainage facility constxv-•�.�.on to
advance funds frcm revenues generated autside of drai.iiage f����^. In
such instances the city's contribution shall be aonsic3ered a�� -ic�vance
or loan and the drainage fee shall repay the appropriate funrl.
NOW, TE�REFORE, BE IT RESOLVID based on ths abave fir�di.rx�s ttie Pal�!� llesert
City Cauncil acbpts this resolution clarifying the purpose of ti�e fee c�• +�moiily
referred to as the drainage fee and fulfilling ttie require9��riLs of AB 1 r,� x�,
BE IT FURTf�Et RESOLVm that the staff repor� dat�d ]�/()f3/88 ��� �� 1 1 be
attached hereto as exhibit A and the procedure setfoz�L}i t}�c�r c� i i� t c� in�� I���� �t xt AB
1600 shall be put into ef£ect rn later than January 1, 19F39.
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� RESOLUrI�I AA. 88-151
PASSID, APPRC7VID and ADppTEp at a regular meetirig of the PaLn Desert City
Council held on this 8th day of December, 1988, by the follawirx3 vr�te, to wit:
AYFS: BIIVSON, I�LLY, SNYDER, WILSON
NI�ES : NONE
ABSQ�T: CRITES
ABSTAIN: NONE -
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ATTEST:
SHEILA R.
City of F
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� GAN, City rk
Desert, Ca ornia
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S. WILSON, Mayor
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City of PaLa Dasert
T0: City Marzager and City Council
FR�I: Assistant City Manager/Director of Canrnmity Developm�nt
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California State As.sembly Bill 1600 requires that certain g�,ntal fees
caazform to�specific processes.
AB 1600
The measure does not apply to all city fees. For the puYposes of AB 1600 fee
means:
"A m�rietaiy exactioaz, othQx than a tax or special assessment, which
is r.izarged by a local age.�lcy to tt�e applicant in �tiori with, - . � -
app�oval of � a develo�nent proj ect for � trie p�uupo,se of 'def 'rayirir� aTl or �
a portioa'i of�the aost of public facilities related to the developnent
project but does rx�t include fees specified in Sectiaaz 66477, fees
for processing applicants for g�c�tal regulatory actions or
approvals, or fees oollected ur�der develognent agreeme.nts. .."
The legislation is limited to tho�e exactions used to provide public
facilities. Sectioai 66477 relates to fees for park and recreatio�-ia1 purposes;
therefore, in o�r case the fees that are effected by AB 1600 are:
1. The ne�w cnc�stxuctian tax.
2. Fire facilities fee.
3. Drainage fee.
4. Signalization fee.
5. Art in Public Places fee.
6. FYinge-t.oed lizard fee.
Any new de�velc�xnent fee the city may wish to it�o,se after January 1, 1989 per
Secti� 6600 mu.st :
1. Identify the puYpose of the f.ee.
2. Identify the use to which the fee is to be put. If the use is financirig
public facilities, that identification �, but need not, be made by
referenc,e to a capital impravement plan, � be made on applicable general
or specific plan requirements, or may be made in other public doc�unents
that identify the public facilities for which the fee is charged.
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3. Determira�� : x7w there is a reasor�able relationship between the fee' s use and
the tXp�� af ciavelopnent project � which the fee is aomposed.
4. Detsrmirue haw there is a reasonable relationship betwee.n the n�d for the
pu,Ulic facility and the type of develognent project ce� which the fee is
imposed.
Any action imposir�g a fee as a conditio� of appraval after January 1, 1989 nnist
have ds�nstxated "haw thsre is a reasazable relati�ship between the amauit of
the fee and the cost of the public facility or portiocz attributable to the
develognent on which the fee is imposed.
Ft,irthermore, the AB 1600 requires that the ftu�d.s callected be experlded within
five years of oollecti�--barring specific findings to be mac1e ori a year by
year (fiscal y+ear) basis to Carry ths funds over.
As stated earlier the Palm Desert fees that fall unclex AB 1600 are:
A. New con.struCtio[i t3x.
B. Fire Facilities fee. .
. C. . Drairiage �ee.� � ' .� .
� D. �Signalization fee.
E. Arts in Public Places fee.
F. Fringe-t�oed lizard fee.
New Construction Tax
The rbew aoilstruction tax was established by ordinarbce in 1974. The ordinance
was revised in 1979. The fee is as follaws:
A. For each c'�aelling Lmit a single-family, �zium, apartinent ca�lex,
mu].ti-clw�ellir�g structure, ar in a hotel or in a dormitory, forty cents per
square foot of gross building area under roc�f, excludiryg accessory
structures or areas such as carports, garages, recreati� buildings.
B. For each trailer space, thz�ee hundrec� dollars.
C. For each Luiit or structure in an industrial of sPxvice industrial zone
five cents a square foot of gxnsa building area.
D. All others, forty cents a s��uare foot gross builcliux,� area.
The fees collected in the past were utilized for projects of city-wide
significance. The city hall, city hall �ling, librazy, land acquisition
in the north sp��ere .
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The ty�e of facilities that the fw�d is used for are of a citywide significar�ce
or bP.nefit. As new developriw..nt occurs existing public facilities of citywide
nature require mod.ificatioa-i or e.xnarlsion in a vezy direct relaticn,sh.i.p.
In order to accamioc3ate developnent and assure ourselves that the public
facilities will be available within a reasoriable time of demand tl�e city may
use othex revenue s�es to take advantage of econanies of scale and avoid a
public facilities gap. Use other sources of revenue with the idea of repaying
those acooturts when the revenue is raised.
In the future, the z�w construction tax will oontinue to be used for capital
projects of citywide sigrLificanc,e. 'Phis is fair because it is i�osed cn
infill as w�ell as develognents in outlying areas.
The projects that these furLds will offset scme of the oost of iryclude:
1. Librazy.
2. City yard. , ,
3. Givic c�nter dev�elo�zt. . , • • .
In tenns of projected revenues it appears that this fund will raise between $6
and $7 million at total buildout. This pirojecti� is ba.sed oaz an additior�al
5000 dwelling units at an average size of 2000 square feet; with the re�nair�der
generated by camiex�cial develapnent.
The capital projects mentior�ed will obviausly cost more than the revenue's
which are projected. Thi.s should be the case, for the pui�o.se of this fee is
to offset the impacts of r�ew develognents ocz city-wide infrastructure rx�t
defray ttle entire exper�diture.
The use of a square foot forn�ula is directly related to de�nand gezyeration as
w�ell as ability to pay. Generally, the smaller the unit, the fewer the
occupants, and thus the lower the demand or impact on given public
infrastructure.
The city had adopted a civic center master plan, with variaus citywide
facilities projected.
A. P3Y'k.
B. Library.
C. Shexiffs' substaticaz.
D. Band shell.
E. Open activ�e and passive recreation areas.
F. City yard.
G. Ci.ty hall.
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The plan' s implementation cost wil l exc,eed $40 mi.11ioci. The facilities
contain�ed within t,he civic center have a citywide r�eed or service area.
There is a direct correlati� to the size of the�se facilities to the size of
populaticez'(both te[rq�orary and full-time) and the desired quality of service.
Therefore, the use af this type of fee to offset the oost of servicis�g
additioa�al dgnand gensrated by n�ew development is a fair and equitable manner
of offsetting this additional biu�n.
No agencies plans can be limited to a specific series of projects. As time
passes the needs for other facilities of citywide significance may be
identified as the city expar�d.s. In such cases, ho�w�ev�er, tX�ose already prese,nt
we�uld have c�tributed to the facilities development through general fund
revenues ( sales, transient occuparx.y, business license, etc. ). trh�ile new
develc7pnent would oontribute their share of the facilities through the n�w
c�.stxuctiori fee. . .
In ord�er to meet the require�ments of AB 1600 as it relates to this particular. .. ....
c3evelapnPnt fee it is .suggested that the � follc�air�g p�oceclure be establistied. •
•. it� sho�ii be r�ote'ci t.Yiat sonie parts of this gx�c�ch�re are already in place.
A. All fees generated fran this fee shall be designated for project,s of
citywide significarlc.e. Fresently these would involve:
l. Civic Center Site.
a. Library.
b. Park.
c. City hall.
d. CitY Y�-
2. Land Aa�isitio� for Citywide Facilities.
B. All fees oollected shall be identified as to date of oollecti� to assure
th�eix use within the five year time frame.
C. A�r gen�esal fwzd revn.�lues used to d�evelop the civic center site w�.�ld be
reimbui�sed by this fee.
D. The funds f�m th��e fees would rr�t be used for neighborhood facilities.
E. Prior to any projects being ac3d�ed to the new aon.stxucti� fee fjY�ci.r�g
mechanism a specific finding will be required by the city oo�u�cil that the
particular project is of citywide r�ed and service area.
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Signalizatica� Fee
The signalizatioal fee was established in May, 1978, by Resolutiori No. 78-58.
'I7�e p�poses of the fee are to:
1. Create a more equitable distributi� of signalizatiori aosts.
2. As_�ure the availability of necessary funding whe,�z warrants are made for
specific intersection signalization.
Fquitable distxibuti� of costs.
Traditior�ally the oosts of signalization wpxe borne by ti�e whr� d�velq�ed at
intexsectioc�s. The City of PaLn Desert reoognized that such an appm�ach was
not equitable, because traffic volumes that may warrant intersection
signalization are not generated by those who dev�elap on cornexs. Re�'{ ri.r�g all
who develap to aoritribute to signalization fundir�g is, thexefore, the faire,s�
method of distributing signalizatioaz costs.
.- F�ti�e.r, . traffic �generated� by develapnPnt � iri �r�e area of the citY �Y �Y w�ell� �. . . . . .
im�act an intersectia-i in anothex portion of the city. Znci�eed, traffic flaws
throughout the community and while a signal may not be required in the
i�nnediate area where ci�evelogrient occurs, there is a city-wide n�e.xus, or causal
relation betw�een developnent and the r�eed for sic,�alization.
iiawever, it shauld be menticxzed that signalizatioci fees are not the sole sour�ee
of traffic signal ftmding. Since iix�orporatiori thaLsan�d..s of dr�llars have been
spe,nt fran gas tax and general fund revenues to help o�struct �i-ie present city
signalization system.
The vast majority of signalizatioaZ projects in the future will occ,-ur in ti�e
n�orth sphere . Tt�e area north of C',auitxy Club Drive betw�ee.n Moriterey Avpnue and
Cook is primarily vacant. Developnent in this area will be the direct cause
for traffic signals and their fiu�dir�g. The follawing intersections will
someclay require traffic signals.
Nbnter�y - Gerald Ford
Moriterey - Dinah Shore
Pbrtola - FYank Sinatra
Portola - Hw1ey
Goaic - Gerald Ford
Qoo�c - FYank Sinatra
C',od{ - Havley
C,00k - Dinah ShQre
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The total oost of the.se
F�ture develc�pretlt within
these oosts.
Availability of �ing
signals will range fran $800, 000 to avex $1 milliori.
the r�orth sphere area will pay the prepandexarlce of
This leads us to the secorxi reason for signalizatiori fees, the assuranr,e of
available fundii�g whP.n the need for a traffic signal occurs. Signalizati�
fees from ti�e mrth sp�ere area sYr_nild go directly to fur�ding future signals in
the area. Tt�ose signals have been identified above.
In additiori, the follawing intersections may in the next 20 years require
signalizatiori:
C,00�c - I-10 Ra[�
Portola - Fairway
Portola - Haystack
Portola - Rutledge
Por�ola - I�$ia,Fa�ls.
Morite'rey : ' - ' . I-10 Ramp
G�-rently, tt�e signalizatiori fund aontains some $500, 000 of which ap�pr�aximately
$300,000 has been generated via signalization fees. '
The signalizatioa� fees generated by development south of the i�itewater should
be identified for these signals. This is based � the followi.rx3:
A great deal of development will be canner�ial activities of a
variety that service the entire city. As such txaffic wl�unes could
be effected on north-south, east-west c�orridors. In effectizyg those
traffic volumes there is a direct correlation between these
develo�ments' im�act to generating the rieed for these signals and,
therefore, their respoa�.sibility to offset the cost of signalizatiori.
Drainage Fees
Drainage fees to offset tt�e aost of city draulage facilities w�ere originally
established by the city in 1979 through Ordis�ance No. 218.
The fee implements the different master plar�s of drairiage in tYie city. The fee
is ba_sed oci the oosts established to develop major drainage facilities within
specific areas of the city. The fee has been augmented by the use of
rec3evelo�me�lt funds within identified redevelognent project areas. The oost is
the,n spread � a per acre basis withiul identified drai.nage areas.
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The nexus ar relati�ship of the rleed for the facilities and develo�xnent is
vexy clear. As vacant land is developed, regarciless of the intensity or ty�e
of develo�nent potential flood arbd nuisarlce water must be diverted to protect
the site and cikaru�ieled fmn the site. It is tt�e dev�elOpnent not the type th.at
gei�exates the need; therefore, a fee ba.sed ori acreage rather tilan intensity of
use is ap�pr�apriate.
Because the city is divicied into distinct drainage areas, fi.ux3s genexated by a
given d�ev�lopment are utilized for the bex�fit and to offset the impact caused
by the dQ�velc�xnent .
As the case in other fees for public facilities identified in this report, it
is necessaYy from time to t�me for other revenue saurces to be u.5ed to achieve
eooa�atues of scale, as w�el l as assure orc�erly devela�tient . In such instances
the drair�age fees may be used to repay a given general fund acao�unt.
Without drainage fees the desired level of flood and nuisance water protectiori
rAuld mt be efficiently or econrR�ically achieved.
The� draina9e ProJects wYiich wi11: be �required by th�e city'have been identified
in acbpted master drainage plans.
Fire facilities, art in public places, and frir�ge-toed lizard fees curre.ntly
meet ti�e r�equirgnents setforth in AB 1600 and r�o further resolutions are
required.
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RANI'JIV A. DIAZ
ASSISTANT CITY IRECPOR OF CXxT'�.JNITY DEVEL�OPN�fP
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CITY COUNCIL ACTION:
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