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HomeMy WebLinkAboutRes 06-154 Frindge-Toed Lizard - Fee IncreaseCITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: Consideration of a Fringe -Toed Lizard Habitat Conservation Plan Fee Increase SUBMITTED BY: Phil Drell, Director of Community Development DATE: November 16, 2006 CONTENTS: Staff Recommendation Executive Summary Background Draft Resolution No. 06-154 Nexus Study Staff Recommendation: That the City Council approve Resolution No. 06-154 increasing the fee for coverage under the Coachella Valley Fringe -Toed Lizard Habitat Conservation Plan to $2,371 per disturbed acre. Executive Summary: When the Coachella Valley Fringe -Toed Lizard Habitat Conservation Plan (CVFTLHCP) was adopted in 1986, the $600 per acre mitigation fee was not indexed to land cost inflation. Subsequent biological studies revealed that more land than anticipated needed to be acquired resulting in a significant funding shortfall. These original plan deficiencies were to be corrected in the Multiple Species Habitat Conservation Plan (MSHCP). With the delay in the MSHCP, the Department of Fish and Game agreed to allow extension of the FTLHCP if the mitigation fee were increased pursuant to a nexus study. The nexus study has determined the appropriate fee to be $2,371 per disturbed acre. The Building Industry Association has reviewed the study and agrees with its conclusions. Background and Discussion: In 1986, a Coachella Valley Fringe -Toed Lizard (CVFTL) Habitat Conservation Plan (HCP) was approved and resulted in the issuance of an ESA Section 10(a) incidental take permit ("Permit") by the U.S. Fish and Wildlife Service (USFWS) to Staff Report Fringe -Toed Lizard HCP Fee Increase Page 2 November 16, 2006 the Cities and County to authorize take of CVFTL resulting from land development and other activities covered by the HCP. The California Department of Fish and Game (CDFG) did not sign the HCP or authorize incidental take of CVFTL associated with the HCP because a permitting process had not been established under CESA at the time the HCP was developed, but CDFG nonetheless participated in implementation of the HCP. The Cities and the County entered a Memorandum of Understanding with USFWS and CDFG on March 21, 2001 (2001 MOU) whereby CDFG made a Consistency Determination pursuant to Section 2080.1 of the Fish and Game Code finding that the FWS permit in combination with the mitigation provided in the Memorandum of Understanding is consistent with CESA. The Parties to the 2001 MOU agreed that the CVFTL can best be protected by inclusion of the species in the MSHCP, and included in the MOU certain measures to be implemented on an interim basis to protect the CVFTL until the MSHCP is in place. The 2001 MOU, as subsequently amended, expired June 30, 2006; however, the MSHCP has not been implemented because the City of Desert Hot Springs did not approve it. The Cities and the County desire to maintain the Permit for the CVFTL in effect until the revised MSHCP and related documents can be prepared and incidental take permits issued by the FWS and CDFG. Loss of the Consistency Determination would have several ramifications: 1. California Endangered Species Act: Projects that may "take" the lizard will be required to obtain individual permits from DFG. 2. Litigation on the Federal Permit: The federal lizard permit is vulnerable to litigation as the federal permit only permits "take" that is "incidental to an otherwise lawful activity." The Center for Biological Diversity in a letter to FWS dated May 30, 2006, threatened litigation on the CVFTL HCP. 3. California Environmental Quality Act (CEQA): Projects in potential lizard habitat may now be required to do full environmental impact reports because of the CEQA "mandatory findings of significance" provision for endangered species. As the CVFTL HCP fee mitigation area is quite large, the CEQA ramifications are potentially significant. Staff Report Fringe -Toed Lizard HCP Fee Increase Page 3 November 16, 2006 CDFG informed the Cities and the County through the Coachella Valley Association of Governments (CVAG) that it would extend the Consistency Determination for the CVFTL Permit under certain conditions, including that the Cities and the County consider a revised CVFTL mitigation fee based on a Nexus Study. A revised fee is appropriate because USFWS and CDFG have previously expressed concern relative to the adequacy of the original CVFTL HCP. The MSHCP is intended to address those concerns. To maintain the CVFTL Permit in effect until the completion of the MSHCP, a new fee is needed to ensure acquisition of the lands needed to adequately conserve the CVFTL until the MSHCP can be completed and implemented. This report documents the legal and policy basis to support adoption of the revised CVFTL mitigation fee by the Cities and the County of Riverside. A Nexus Study intended to satisfy the requirements of California Government Code 66000 et seq. with respect to the establishment of a new fee or increase in the amount of an existing fee was performed by MuniFinancial under contract to CVAG. This Nexus Study determined the new fee to be $2,371 per disturbed acre. FISCAL ANALYSIS: The current CVFTL HCP fee is $600 per disturbed acre. The revised fee determined by the Nexus Study is $2,371 per disturbed acre. It is estimated that 1,331 acres would develop and pay the fee each year, making the annual revenue from the revised fee $3,155,801. While the City incurs staff time in determining and collecting the CVFTL HCP fee, loss of the Consistency Determination would require staff to review individual projects with regard to impacts to the CVFTL. Submitted by: Director of Community Development Approval: Carlos L. Ortega City Manager Appro Homer Cro ACM for D opment Services �ITY COUNCILION: APPROVED DENIED RECEVED ,,OTHER��' N(, (J4- i . L/ MEET IN DATE ({ - //D - UCC AYES: KCUSr/ <Q/Ili ie / NOES: ABSENT: ABSTAIN: VERIFIED BY: 7Y 1 Original on File wit `W City Clerk's Office (W pdocs\tm\sr\cvltl hc.cc) RESOLUTION NO. 06-154 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, INCREASING THE FRINGE - TOED LIZARD MITIGATION FEE FOR DEVELOPMENT WITHIN HISTORICAL HABITAT AS IDENTIFIED IN THE COACHELLA VALLEY FRINGE -TOED LIZARD HABITAT CONSERVATION PLAN. WHEREAS, the City Council of the City of Palm Desert, California, did on the 16th day of November, 2006, hold a duly noticed public hearing on the above described increase; and WHEREAS, the Cities of the Coachella Valley, County of Riverside, Coachella Valley Association of Governments, California Department of Fish and Game, U.S. Fish and Wildlife Service and The Nature Conservancy cooperated in the preparation of the Coachella Valley Fringe -Toed Lizard ("CVFTL") Habitat Conservation Plan ("HCP"), which was implemented through agreements and other documents signed by the parties (collectively the "HCP Agreement"); and WHEREAS, all new development projects within certain designated historical habitat areas of the CVFTL as identified in the HCP Agreement ("designated mitigation fee area") will have direct and cumulative impacts on the CVFTL, its potential habitat or the ecological processes necessary to sustain that habitat such that mitigation is necessary in order to preserve the species; and WHEREAS, all new development within the designated mitigation fee area will directly or indirectly benefit by funding a comprehensive approach to habitat mitigation; and WHEREAS, the HCP Agreement has identified, as a priority, critical sand source area that must be purchased for conservation in order to adequately protect the CVFTL and its habitat; and WHEREAS, each newly developed acre within the designated mitigation fee area has approximately the same proportionate impact on the loss of habitat so that each proposed acre to be disturbed is proportionate to the total cost of acquiring the priority sand source areas identified in the HCP Agreement: and WHEREAS, the HCP Agreement provides for the acquisition and protection of designated priority sand source areas and provides that acquisition be funded primarily through a mitigation fee last established at $600 per disturbed acre, to be collected from land owners who obtain grading or building permits from the Cities or County for projects within the designated mitigation fee area; and WHEREAS, substantial evidence exists that the current $600/acre fee is insufficient to acquire all priority sand source areas previously identified as necessary to insure viable preserves capable of perpetuating the species; and RESOLUTION NO. 06-154 WHEREAS, an increase in the fee is needed to insure acquisition of the priority sand source area needed to adequately conserve the CVFTL; and WHEREAS, an updated Nexus Study has now been completed, a copy of which has been available for public review for more than ten (10) days; and WHEREAS, the Nexus Study has considered the remaining acreage of priority sand source areas to be purchased for conservation, the projected cost of acquisition, and the anticipated amount of acreage within the designated mitigation fee area to be developed, which data demonstrates that the mitigation fee must be increased to $2,371 per disturbed acre in order to meet the above -referenced goals of the HCP; and WHEREAS, the formula for determining the increase in the mitigation fee is calculated on a per acre basis relative to each proposed project as its size is measured in acres such that there is a reasonable relationship between the increased fee to be charged for each proposed project and the corresponding impact of that project on that proportionate cost of conservation of priority sand source area necessary for habitat protection; and WHEREAS, notice of the public hearing on the adoption of this Resolution has been given as required by law; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, that the Fringe -Toed Lizard mitigation fee imposed through the HCP Agreement shall be raised to $2,371/acre effective February 1, 2007. PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert City Council, held on this day of , 2006, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, City Clerk City of Palm Desert, California 2 JAMES FERGUSON, Mayor John Wohlmuth, Executive Director Coachella Valley Association of Governments 73-710 Fred Waring Drive, Suite 200 Palm Desert, CA 92260 Dear Mr. Wohlmuth, Desert Chapter Building Industry Association of Southern California 77-570 Springfield Lane Suite E Palm Desert, California 92211 October 4, 2006 760.960.2476 fax 760.772.9372 www.Des&tchapteecom E Mad: Bu@DesertChapteroom We have had the opportunity to review the `Fringe -Toed Lizard Habitat Mitigation Fee Administrative Draft', dated September 8, 2006. We appreciate the time Jim Sullivan has taken to better explain the process for mitigating this endangered species. Based on the drafted fee study and the additional materials and explanations provided, the BIA accepts the conclusions for mitigation of the Fringe -Toed Lizard for this following year as a revised Multiple Species Habitat Conservation Plan is re- circulated. Respectfully, Executive Director An Affiliate of the National Association of Home Builders and the California Building Industry Association CITY Of PRLffl OESERT 73-510 FRED WARING DRIVE. PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346-0611 FAX: 760 34I-7098 infoC)palm-descrt.org NOTICE OF PUBLIC HEARING REGARDING A COACHELLA VALLEY FRINGE - TOED LIZARD HABITAT CONSERVATION PLAN FEE INCREASE Notice is hereby given by the CITY OF PALM DESERT that a PUBLIC HEARING on the following item will be held before the PALM DESERT CITY COUNCIL AT THE CIVIC CENTER COUNCIL CHAMBER located at 73-510 Fred Waring Drive, Palm Desert, California on Thursday, November 16, 2006 at 4:00 p.m. SUBJECT: A Public Hearing to consider an increase in the Coachella Valley Fringe -Toed Lizard Habitat Conservation Plan mitigation fee. Based on a nexus study prepared in conformance with the requirements of California Government Code 66000 et seq., the mitigation fee required to complete implementation of the plan is proposed to be increased to $2,371 per disturbed acre. If adopted, the new fee would generally apply to the development of all undisturbed vacant parcels between the Whitewater Storm Channel and Interstate 10. ADDITIONAL INFORMATION: Pursuant to the California Govemment Code, please take notice as follows: If you challenge the action described in this written notice in court, you may be limited to raising only those issues you or someone else raises at the public hearing, or in written correspondence delivered to the City of Palm Desert at, or prior to, the Procedure Section 1094.5. The City of Palm Desert complies with the Americans with Disabilities Act. If you require reasonable accommodations for this meeting, contact the City Clerk's Office at (760) 346-0611, Ext. 304 at least three (3) working days prior to the public hearing. If you have any questions about the above mitigation fee or want to submit comments, you may contact Phil Drell at (760) 346-0611 ext. 481. Publish: Desert Sun RACHELLE D. KLASSEN, City Clerk 11/05/06 and 11/10/06 City of Palm Desert, California J MOM WI II(,(It 0 NMI