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HomeMy WebLinkAboutLegislative Review - SB 321 (Morrow) Development FeesREQUEST: DATE: CONTENTS Recommendation: CITY OF PALM DESERT COMMUNITY SERVICES DEPARTMENT STAFF REPORT CONSIDERATION ACTION ON SB 321 2005 April 14, 2005 SB 321 Language OF LEGISLATIVE REVIEW COMMITTEE (MORROW) AT ITS MEETING OF MARCH 22, By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of March 22, 2005, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to SB 321 (Morrow) relative to development fees. Executive Summary: Passage of SB 321 would require local agencies to determine a proportionality between development fee use and the attendant development fees. Background: Current law authorizes local agencies to charge a variety of fees in connection with the approval of a development project and provides that in specified actions when imposing a fee as a condition of approval of a development project by a local agency, the local agency shall determine how there is a reasonable relationship between the fee use and the type of development project on which the fee is imposed, the amount of the fee, and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed. SB 321 would require that local agencies determine how there is a proportionality between fee use and the type of development project on which the fee is imposed, the amount of the fee, and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed. The language of SB 321 could possibly add yet one more layer of local bureaucracy to the permitting process for developers as well as potentially impact the manner in which various communities throughout the State of California conduct their day-to-day business in this regard. Mandating a determination regarding the establishment, imposition, and collection of development fees is not an issue that the Legislature should mandate on a statewide basis. Therefore, the Legislative Review Committee recommends that the City Council oppose SB 321 and direct staff to prepare a letter stating that position to appropriate legislators for the Mayor's signature. PATRICIA SCULLY, CFEE SENIOR MANAGEMENT ANALYS r ,6HEILA R. GILLIGAN ASSISTANT CITY M N GER/PIO PAUL S.,,GIBSON DIR OF FINANCE/CITY TREASURER CARLOS L. O EGA CITY MANAGER SB 321 Senate Bill - INTRODUCED L r BILL NUMBER: SB 321 INTRODUCED BILL TEXT INTRODUCED BY Senator Morrow FEBRUARY 16, 2005 An act to amend Section 66001 of the Government Code, relating to development fees. LEGISLATIVE COUNSEL'S DIGEST SB 321, as introduced, Morrow. Development: fees. Existing law authorizes a local agency to charge a variety of fees in -connection with the approval of a development project, as defined. Existing law provides that in specified actions imposing a fee as a condition of approval of a development project by a local agency, the local agency shall determine how there is a reasonable relationship between, among other things, the fee's use and the type of development project on which the fee is imposed or the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed. This bill would, instead, require that the local agency determine how there is a rough proportionality between the fee's use and the type of development project on which the fee is imposed or the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed. Vote: majority. Appropriation: no. Fiscal committee: no. State -mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 66001 of the Government Code is amended to read: 66001. (a) In any action establishing, increasing, or imposing a fee as a condition of approval of a development project by a local agency --G;; -- " 41- 7 — 1, 1., ? P94— , the local agency shall do all of the following:(1) Identify the purpose of the fee. (2) Identify the use to which the fee is to be put. If the use is financing public facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital improvement plan as specified in Section 65403 or 66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the public facilities for which the fee is charged. (3) Determine how there is a rough proportionality between the fee's use and the type of development project on which the fee is imposed. (4) Determine how there is a ab ^ rough proportionality between the need for the public facility and the type of development project on which the fee is imposed. Pagel of 3 http://info.sen.ca.govlpublbilllsenlsb 0301-03501sb 321 bill 20050216 introduced.html 2/21/2005 SB 321 Senate Bill - INTRODUCED Page 2 of 3 (b) In any action imposing a fee as a condition of approval of a development project by a local agency Q;; or after r:.r ,°� , the local agency shall determine how there is a 2 ^ ^1"4^. `'i rough proportionality between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed. (c) Upon receipt of a fee subject to this section, the local agency shall deposit, invest, account for, and expend the fees pursuant to Section 66006. (d) For the fifth fiscal year following the first deposit into the account or fund, and every five years thereafter, the local agency shall make all of the following findings with respect to that portion of the account or fund remaining unexpended, whether committed or uncommitted: (1) Identify the purpose to which the fee is to be put. (2) Demonstrate a-r�----^- -�_9,-r 4_. rough proportionality between the fee and the purpose for which it is charged. (3) Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements identified in paragraph (2) of subdivision (a). (4) Designate the approximate dates on which the funding referred to in paragraph (3) is expected to be deposited into the appropriate account or fund. When findings are required by this subdivision, they shall be made in connection with the public information required by subdivision (b) of Section 66006. The findings required by this subdivision need only be made for moneys in possession of the local agency, and need not be made with respect to letters of credit, bonds, or other instruments taken to secure payment of the fee at a future date. If the findings are not made as required by this subdivision, the local agency shall refund the moneys in the account or fund as provided in subdivision (e). (e) Except as provided in subdivision (f), when sufficient funds have been collected, as determined pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 66006, to complete financing on incomplete public improvements identified in paragraph (2) of subdivision (a), and the public improvements remain incomplete, the local agency shall identify, within 180 days of the determination that sufficient funds have been collected, an approximate date by which the construction of the public improvement will be commenced, or shall refund to the then current record owner or owners of the lots or units, as identified on the last equalized assessment roll, of the development project or projects on a prorated basis, the unexpended portion of the fee, and any interest accrued thereon. By means consistent with the intent of this section, a local agency may refund the unexpended revenues by direct payment, by providing a temporary suspension of fees, or by any other reasonable means. The determination by the governing body of the local agency of the means by which those revenues are to be refunded is a legislative act. (f) If the administrative costs of refunding unexpended revenues pursuant to subdivision (e) exceed the amount to be refunded, the local agency, after a public hearing, notice of which has been published pursuant to Section 6061 and posted in three prominent places within the area of the development project, may determine that the revenues shall be allocated for some other purpose for which fees are collected subject to this chapter and which serves the project on which the fee was originally imposed. http://info.sen.ca.govlpublbilllsenlsb 0301-03501sb_321 bill_20050216 introduced.hft l 2/21/2005