HomeMy WebLinkAboutRes 08-8 and Ord 1151 Mitigation Fee for the Prsrvtn of Natural Ecosystems �
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STAFF REPORT
REQUEST: Approval of a Local Development Mitigation Fee Ordinance for Funding
the Preservation of Natural Ecosystems in Accordance with the Coachella
Valley Multiple Species Habitat Conservation Plan Consideration.
SUBMITTED BY: Renee Schrader
DATE: January 24, 2008
CONTENTS:
1. Ordinance No. 1151 of the City Council of the City of Palm Desert to
Establish a Local Development Mitigation Fee for Funding the
Preservation of Natural Ecosystems in Accordance with the Coachella
Valley Multiple Species Habitat Conservation Plan.
2. Resolution No. 08-8 of the City of Palm Desert adopting the Local
Development Mitigation Fee Schedule Applicable to New Development
within the City of Palm Desert.
3. Local Development Mitigation Fee Report, dated January 15, 2007, which
is also referred to as the "Nexus Study."
Recommendation:
Waive further reading and pass:
• Ordinance No. >>5' of the City Council of the City of Palm Desert to establish a
Local Development Mitigation Fee for Funding the Preservation of Natural Ecosystems
in Accordance with the Coachella Valley Multiple Species Habitat Conservation Plan.
• Resolution No. 08-8 of the City of Palm Desert adopting the Local Development
Mitigation Fee Schedule Applicable to New Development within the City of Palm Desert.
Executive Summary:
Adoption of an Ordinance for the local development mitigation fee schedule applicable to new
development within the City of Palm Desert would allow the City to participate in the
conservation goals set forth in the Coachella Valley Multiple Species Habitat Conservation
Plan/Natural Community Conservation Plan ("MSHCP"), adopted by the City Council on October
11, 2007, to implement the associated Implementing Agreement executed by the City Council
on October 11, 2007, and to preserve the ability of affected property owners to make
reasonable use of their land consistent with the requirements of applicable laws, which could
include the National Environmental Policy Act ("NEPA"), the California Environmental Quality
Act ("CEQA"), the Federal Endangered Species Act ("FESA"), the California Endangered
Species Act ("CESA") and the California Natural Community Conservation Planning Act ("NCCP �
Act").
City Council
January 24, 2008
Approval of the Local Development Mitigation Fee Ordinance
Multiple Species Habitat Conservation Plan
Discussion:
As a permittee under the Coachella Valley Multiple Species Habitat Conservation Plan
("MSHCP") the City must take certain actions, including approval of the MSHCP, Implementing
Agreement ("IA") and CEQA Responsible Agency Findings to effectuate the Plan. The City
completed these actions on October 11, 2007. Another action the Ciry must take to prepare for
MSHCP implementation is approval of a Local Development Mitigation Fee (LDMF) on new
development within the plan area in order to meet the conservation goals set forth in the
MSHCP.
The LDMF imposed on new development projects will be a primary source of funding for the
habitat acquisition program under the MSHCP. The LDMF is a type of development impact fee
under California Government Code Section 66000 et seq. The legal and policy basis to support
the adoption by local agencies in the Coachella Valley of the LDMF is provided in the Local
Development Mitigation Fee Report, the Nexus Report, dated January 15, 2007 and prepared
by MuniFinancial for CVAG. A copy of this report is included for your review.
The LDMF is necessary for issuance of the Permit because the wildlife agencies require that the
local permittees identify sufficient funding for implementation of the MSHCP. The LDMF will only
be used for land acquisition and related costs.
New development affects the environment directly through construction activity and cumulatively
through the activities of the population bases that result from development. Government Code
Section 66000 et seq. allows cities and counties to charge new development for the costs of
mitigating the impacts of new development. All new development projects on vacant or partially
vacant lands regardless of location will have direct and cumulative impacts on species and
existing or potential habitat and natural communities. New development also causes a need for
and benefits from the installation of public infrastructure. Without new development no further
habitat conservation to mitigate for development impacts would be needed in the Plan Area.
Therefore, there is a reasonable relationship between the need for habitat conservation and all
rypes of residential and nonresidential development throughout.
The proposed Development Mitigation Fee would be $5,730 per acre, with a per unit fee for
residential development. The residential fee per unit for a density of 0-8 units per acre would be
$1,284. The fee schedule in 2008 dollars is as follows:
Cost Per Average
Acre Lot Size Fee
Residential
0 - 8 Units Per Acre $ 5,730 0.22 $ 1,284
8.1 - 14 Units Per Acre 5,730 0.09 533
14.1+ Units Per Acre 5,730 0.04 235
Nonresidential
Commercial $ 5,730 NA $ 5,730
Industrial $ 5,730 NA $ 5,730
Page2of4
City Council
January 24, 2008
Approval of the Local Development Mitigation Fee Ordinance
Multiple Species Habitat Conservation Plan
The proposed fee schedule presented here represents a reasonable approach to the fair
allocation of costs across all new development. The Coachella Vaffey Conservation Commission
(CVCC) will monitor the implementation of the residential fee approach over time and propose
adjustments to the four categories if conditions warrant.
The fee ordinance provides for an annual CPI adjustment based upon the Consumer Price
Index for "All Urban Consumers" in the Los Angeles-Anaheim-Riverside Area, measured as of
the month of December in the calendar year which ends in the previous fiscal year. There will
also be a provision for the fee to be reevaluated and revised should it be found insufficient to
cover mitigation of new development. As required by state law, the CVCC will update the Nexus
Study at least every five years, and more often if deemed necessary, to ensure that the Local
Development Mitigation Fee is adequate over the life of the acquisition program to fund the
necessary land acquisition and land improvement.
All LDMF revenue and habitat acquisition expenditures will be accounted for in a Land
Acquisition & Improvement Fund, managed by the CVCC. The projected revenue from the Local
Development Mitigation Fee (Table 5-2b of the MSHCP) is anticipated to be approximately
$516,802,000 (nominal dollars) over the first 50 years of Plan implementation. For purposes of
projecting revenue, the MSHCP (Table 5-3c) assumes that the fee increases 3.29% annually.
The local permittees intend to generate funds for Plan implementation from sources in addition
to the Local Development Mitigation Fee. These sources include but are not limited to landfill
tipping fees, transportation project mitigation from CVAG, Caltrans and other agencies, and
mitigation funds for regional infrastructure projects.
CVAG and CVCC staff will be available to assist the local permittees with development of
administrative guidelines for the LDMF program.
Fiscal Analysis:
Implementation of the MSHCP is designed to be self-funding and no assessments are required
of the permittees. The MSHCP is to be funded from the Local Development Mitigation Fee,
tipping fees and infrastructure mitigation payments from CVAG, Coachella Valley Water District,
Caltrans, and Imperial Irrigation District.
The projected revenue from the Local Development Mitigation Fee is anticipated to be
approximately $516,802,000 over the first 50 years of Plan implementation, based on the
updated Nexus Study prepared in January 2007. The local permittees intend to generate funds
for Plan implementation from sources in addition to the Local Development Mitigation Fee, as
described above. Assuming an annual increase in land value of 3.29%, the total cost for the
land acquisition program over 30 years is estimated to be $526,705,000. CVCC proposes to
complete the acquisition program in 30 years to minimize costs and potential land use conflicts.
Page3of4
City Council
January 24, 2008
Approval of the Local Development Mitigation Fee Ordinance
Multiple Species Habitat Conservation Plan
Submitted By: Department Head:
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Renee Schr der Lauri Aylaian
Director of Community Development
Approval:
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Homer Cro
ACM Development Services
Paul Gibson
Finance Director
Carlos L. Ortega
City Manager
;,'STY COUNCIL�CTIOIaT:
APPROVED DENIED
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Page 4 of 4
ORDINANCE NO. 1151
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT TO ESTABLISH A LOCAL
DEVELOPMENT MITIGATION FEE FOR FUNDING THE
PRESERVATION OF NATURAL ECOSYSTEMS !N
ACCORDANCE WITH THE COACHELLA VALLEY
MULTIPLE SPECIES HABITAT CONSERVATION PLAN
WHEREAS, the City Council of the Ciry of Palm Desert ("City") finds that the
ecosystems of the City, the Coachella Valley and surrounding mountains located in
central Riverside County, and the vegetation communities and sensitive species they
support are fragile, irreplaceable resources that are vital to the general welfare of all
residents;
WHEREAS, these vegetation communities and natural areas contain habitat
value which contributes to the City's and the region's environmental resources;
WHEREAS, specia! protections for these vegetation communities and natural
areas must be established to prevent future endangerment of the plant and animal
species that are dependent upon them;
WHEREAS, adoption and implementation of this Ordinance will help to enable
the City to achieve the conservation goals set forth in the Coachella Valley Multiple
Species Habitat Conservation Plan/Natural Community Conservation Plan ("MSHCP"),
adopted by the City Council on October 11, 2007, to implement the associated
Implementing Agreement executed by the City Council on October 11, 2007, and to
preserve the ability of affected property owners to make reasonable use of their land
consistent with the requirements of applicable laws, which could include the Nationa!
Environmental Policy Act ("NEPA"), the California Environmental Quality Act ("CEQA"),
the Federal Endangered Species Act ("FESA"), the California Endangered Species Act
("CESA") and the California Natural Community Conservation Planning Act ("NCCP
Act");
WHEREAS, the purpose and intent of this Ordinance is to establish a Local
Development Mitigation Fee to assist in the maintenance of biological diversiry and the
natural ecosystem processes that support this diversity; the protection of vegetation
communities and natural areas within the City, Coachella Valtey and surrounding
mountains located in central Riverside County which are known to support threatened,
endangered or key sensitive populations of plant and wildlife species; the maintenance
of economic development within the City by providing a streamlined regulatory process
from which development can proceed in an orderly process; and the protection of the
existing character of the City and the region through the implementation of a system of
reserves which will provide for permanent open space, community edges and habitat
conservation for species covered by the MSHCP;
WHEREAS, the findings set forth herein are based on the MSHCP and the
studies referenced therein, and the estimated acquisition costs for such property as set
forth in the MSHCP, a copy of which is on file in the City Clerk's office;
WHEREAS, pursuant to Article 11, Section 7 of the California Constitution, the
City is authorized to enact measures that protect the health, safety and welfare of its
citizens;
WHEREAS, pursuant to Government Code sections 66000 et seq., the City is
empowered to impose fees and other exactions to provide necessary funding and public
facilities required to mitigate the negative effect of new development projects;
WHEREAS, on October 11, 2007 the City Council took action on the MSHCP
and the associated Implementing Agreement, and made appropriate findings pursuant
to CEQA; and
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT
DOES ORDAIN AS FOLLOWS:
Ordinance No. ii5i and Title 3 Revenue Finance, Chapter 3.46 Local Development
Mitigation Fee Multiple Species Habitat Conservation Plan Section(s) 3.46.10 through
3.46. 140 of the City of Palm Desert Municipal Code is hereby amended in its entirety to
read as follows:
SECTION 3.46.10. SHORT TITLE. This ordinance shall be known as the
"Coachella Valley Multiple Species Habitat Conservation Plan/Natural Community
Conservation Plan Mitigation Fee Ordinance."
SECTION 3.46.20. FINDINGS. City Council finds and determines as follows:
A. In order to implement the goals and objectives of the Coachella Valley
Multiple Species Habitat Conservation Plan/Natural Community Conservation Plan
("MSHCP") and to mitigate the impacts caused by new development in the City, lands
supporting species covered by the MSHCP must be acquired and conserved.
B. The Local Development Mitigation Fee (the "Fee") is necessary in order to
supplement the financing of the acquisition of lands supporting species covered by the
MSHCP and to pay for new development's fair share of this cost.
C. The appropriate source of funding for the costs associated with mitigating
the impacts of new development to the natural ecosystems and covered species within
the City, as identified in the MSHCP, is a mitigation fee paid for by residential,
commercial and industrial development. The amount of the Fee is determined by the
nature and extent of the impacts from the development to the identified natural
ecosystems and the relative cost of mitigating such impacts.
D. The Fee does not reflect the entire cost of the lands which need to be
acquired in order to implement the MSHCP and mitigate the impact caused by new
development. Additional revenues will be required from other sources. The City finds
Page 2 of 9
that the benefit to each development project is greater than the amount of the Fee to be
paid by that project.
E. The MSHCP and Mitigation Fee Nexus Report, a copy of which is on file
in the City Clerk's office, provide the basis for the imposition of the Fee on new
developments.
F. The use of the Fee is apportioned relative to the rype and extent of
impacts caused by the development.
G. The costs of funding the proper mitigation for natural ecosystems and
covered species identified in the MSHCP which are impacted by new development are
apportioned relative to the type and extent of impacts caused by the development.
H. The facts and evidence provided to and considered by the Ciry Council
establish that there is a reasonable relationship between the need for preserving the
natural ecosystems and covered species identified in the MSHCP, and the impacts to
such natural ecosystems and species created by the types of development on which the
Fee will be imposed; and that there is a reasonable relationship between the Fee's use
and the types of development for which the Fee is charged. This reasonable
relationship is described in more detail in the MSHCP and Mitigation Fee Nexus Report.
I. The fees collected pursuant to this Ordinance shall be used to finance the
acquisition of the lands to protect natural ecosystems and covered species, as set forth
in the MSHCP, are reasonable and will not exceed the reasonably estimated total of
these costs.
J. The Fee shall be used to finance the acquisition of lands and certain
improvements necessary to implement the goals and objectives of the MSHCP.
K. To ensure fair implementation of the development impact fees established
in this Ordinance, it may be necessary for the Ciry to defer or waive such fees in special
cases as may be permitted in accordance with procedures and guidelines established
by the Coachella Valley Conservation Commission.
L. Even though second units on existing single family lots may also
contribute to the need for acquisition of lands necessary to implement the MSHCP, the
City refrains from imposing the Fee on such development at this time, and in this regard
finds that second units: (1) provide a cost effective means of serving development
through the use of existing infrastructure, as contrasted to requiring the construction of
new costly infrastructure to serve development in undeveloped areas; and (2) provide
relatively affordable housing for low and moderate income households without public
subsidy.
SECTIUN 3.46.30 ADMINISTRATIVE RESPONSIBILITY. The Community
Development Department of the City shall be responsible for the administration of this
Ordinance. Detailed administrative procedures concerning the implementation of this
Ordinance may be established and set forth in a resolution adopted by the City Council.
Page3of9
SECTION 3.46.40. DEFINITIONS. As used in this Ordinance, the following terms
shall have ihe following meanings:
"City" means the Ciry of Palm Desert, California.
"City Council" means the City Council of the City of Palm Desert, California.
"Certificate of Occupancy" means a certificate of occupancy issued by the Ciry in
accordance with all applicable ordinances, regulations, and rules of the Ciry and state
law.
"Coachella Valley Conservation Commission" means the governing body
established pursuant to the MSHCP that is delegated the authority to oversee and
implement the provisions of the MSHCP.
"Credit" means a credit allowed pursuant to Section 11 of this Ordinance, which
may be applied against the Fee paid.
"Development Project" means any project undertaken for the purpose of
development pursuant to the issuance of a building permit by the City pursuant to all
applicable ordinances, regulations, and rules of the City and state law.
"Final Inspection" means a final inspection of a project as defined by the building
codes of the Ciry.
"Gross Acreage" means the total property area as shown on a land division map
of record, or described through a recorded legal description of the properry. This area
shall be bounded by road right-of-way and/or legal properry lines.
"Local Development Mitigation Fee" or "Fee" means the development impact fee
imposed pursuant to the provisions of this Ordinance.
"Multiple Species Habitat Conservation Plan" or "MSHCP" means the Coachella
Valley Multiple Species Habitat Conservation Plan/Naturai Community Conservation
Plan, adopted by the City Council on October 11, 2007.
"Conservation Areas" has the same meaning and intent as such term is defined
and utilized in the MSHCP.
"Ordinance" means this Ordinance No. 1i51 of the City of Palm Desert,
California.
"Project Area" means the area, measured in acres, from the adjacent road right-
of-way line to the limits of project improvements. Project Area includes all project
improvements and areas that are disturbed as a result of the project improvements on
an owner's Gross Acreage, including all areas depicted on the forms required to be
submitted to the City pursuant to this Ordinance and/or other applicable development
Page4of9
ordinance or regulation of the City. Except as otherwise provided herein, the Project
Area is the area upon which the project will be assessed the Local Development
Mitigation Fee.
"Residential Unit" means a building or portion thereof used by one family and
containing but one kitchen, which unit is designed or occupied for residential purposes,
including single-family dwelling, multiple-family dwellings, and mobile homes on
permanent foundations, but not including hotels and motels.
"Revenue" or "Revenues" means any funds received by the Ciry pursuant to the
provisions of this Ordinance for the purpose of defraying all or a portion of the cost of
acquiring and preserving vegetation communities and natural areas within the City and
the region which are known to support threatened, endangered or key sensitive
populations of plant and wildlife species.
SECTION 3.46.50. LOCAL DEVELOPMENT MITIGATION FEE. To assist in
providing Revenue to acquire and conserve lands necessary to implement the MSHCP,
the Fee shall be paid for each residential unit, Development Project or portion thereof to
be constructed within the City. Five categories of the Fee are defined and include: (1)
residential units, density less that 8.0 dwelling units per acre; (2) residential units,
density between 8.1 and 14.0 dwelling units per acre; (3) residential units, density
greater than 14.1 dwelling unites per acre; (4) commercial acreage; and (5) industrial
acreage. Because there can be mixed traditional commercial, industrial and residential
uses within the same project, for Fee assessment purposes only, the Fee which is
applicable to commercial or industrial development projects shaH be applied to the
whole project based upon the existing underlying zoning classification of the property at
the time of issuance of a building permit. The fees are calculated using an Equivalent
Benefit Unit methodology. A fee schedule which contains the Fee which is applicable to
one of the five Fee categories shall be adopted by resolution ("Resolution").
A. The amount of the Local Development Mitigation Fee for a commercial or
industrial development project required to be paid shall be based on the acreage to be
developed and shall be calcuiated on the basis of the Project Area, in accordance with
the following:
1. The Project Area shall be determined by City staff based on the
subdivision map, plot plan, and other information submitted to or required by the City.
2. If the difference between the net acreage, as exhibited on the plot
plan, and the Project Area is less than one-quarter acre, the Fee shall be paid on the
full gross acreage.
3. An applicant may elect, at his or her own expense, to have a
Project Area dimensioned, calculated, and certified by a registered civil engineer or
licensed land surveyor. The engineer or land surveyor shall prepare a wet-stamped
letter of certification of the Project Area dimensions and a plot plan exhibit thereto that
clearly defineates the Project Area. Upon receipt of the letter of certification and plot
plan exhibit, the City shall review the submitted documents. If the Project Area
Page 5 of 9
dimensions, the letter of certificate and the plot plan are acceptable to the City, the City
shall calculate the Local Development Mitigation Fee required to be paid based on the
certified Project Area. If the Project Area dimensions, the letter of certification, or the
plot plan are not acceptable to the City, the applicant shall perform such actions as
directed by the City in order to resolve any deficiencies perceived by the City.
4. Where construction or other improvements on Project Area are
prohibited due to legal restrictions on the Project Area, such as Federal Emergency
Management Agency designated floodways or areas legally required to remain in their
natural state, that portion of the Project Area so restricted shall be excluded for the
purpose of calculating the Local Development Mitigation Fee.
SECTION 3.46.60. IMPOSITION OF THE LOCAL DEVELOPMENT
MITIGATION FEE. Notwithstanding any other provision of the City's Municipal Code,
no permit shall be issued for any Development Project except upon the condition that
the Local Development Mitigation Fee applicable to such Development Project has
been paid in accordance with the provisions of this Ordinance.
SECTION 3.46.70. PAYMENT OF LOCAL DEVELOPMENT MITIGATION FEE.
A. The Local Development Mitigation Fee shall be paid in full at the time a
certificate of occupancy is issued for the residential unit or development project or upon
final inspection, whichever occurs first. No final inspection shall be made, and no
certificate of occupancy shall be issued, prior to full payment of the Fee. However, this
section shall not be construed to prevent payment of the Fee prior to the issuance of an
occupancy permit or final inspection.
B. The Local Development Mitigation Fee shall be assessed one time per lot
or parcel, except in cases of changes in land use. The Fee required to be paid when
there is a change in land use shall be reduced by the amount of any previously paid fee
for that property. No refunds shall be provided for changes in land use to a lower fee
category. It shall be the responsibility of the applicant to provide documentation of any
previously paid Fee.
C. The Local Development Mitigation Fee for commercial and industrial
development projects shall be paid in its entirety for the Project Area and shall not be
prorated.
D. The Local Development Mitigation Fee required to be paid under this
Ordinance shall be the Fee in effect at the time of payment.
E. There shall be no deferment of the Fee beyond final inspection or
issuance of certificate(s) of occupancy.
F. Notwithstanding anything in the City's Municipal Code, or any other written
documentation to the contrary, the Local Development Mitigation Fee shall be paid
whether or not the Development Project is subject to conditions of approval by the Ciry
imposing the requirement to pay the Fee.
Page6of9
G. If all or part of the Development Project is sold prior to payment of the
Local Development Mitigation Fee, the Project shall continue to be subject to the
requirement to pay the Fee as provided herein.
H. For development projects which the City does not require a final
inspection or issuance of a certificate of occupancy, the Fee shall be paid prior to any
use or occupancy.
I. For purposes of this Ordinance, congregate care residential facilities and
recreationai vehicle parks shall pay the commercial acreage Fee.
SECTION 3.46.80. REFUNDS. There shall be no refund of all or part of any
Local Development Mitigation Fee paid under this Ordinance, except in cases of
overpayment or miscalculation of the applicable Fee. Only in cases of overpayment or
miscalculation of the Fee will the person or entity that paid the Local Development
Mitigation Fee be entitled to a refund.
SECTION 3.46.90. ACCOUNTING AND DISBURSEMENT OF COLLECTED
LOCAL DEVELOPMENT MITIGATION FEES.
A. All fees paid pursuant to this Ordinance shall be deposited, accounted for,
and expended in accordance with Section 66006 of the Government Code and all other
applicable provisions of law.
B. Subject to the provisions of this section, all Fees collected pursuant to this
Ordinance shall be remitted to the Coachella Valley Conservation Commission at least
quarterly, and will be expended solely for the purpose of acquiring and preserving
vegetation communities and natural areas within the City and the region which support
species covered in the MSHCP in accordance with the provisions of the MSHCP.
C. The City may recover the costs of administering the provisions of this
Ordinance using the Revenues generated by the Fees, in an amount and subject to the
rules and regulations established by the Coachella Valley Conservation Commission.
SECTION 3.46.100. AUTOMATIC ANNUAL FEE ADJUSTMENT. The Fee
established by this Ordinance shall be revised annually by means of an automatic
adjustment at the beginning of each fiscal year based on the average percentage
change over the previous calendar year set forth in the Consumer Price Index for "All
Urban Consumers" in the Los Angeles-Anaheim-Riverside Area, measured as of the
month of December in the calendar year which ends in the previous fiscal year. The first
Fee adjustment shall not be made prior to a minimum of ten (10) months subsequent to
the effective date of this Ordinance. The Fee, as revised annually, shall be compiled by
the City Manager's Office and shall be included in an annual report to the City Council
pertaining to the accounting for the MSHCP Fee as required by Government Code
section 66006.
Page 7 of 9
SECTION 3.46.110. EXEMPTIONS. The following types of construction shall be
exempt from the provisions of this Ordinance:
A. Reconstruction of a residential unit or commercial or industrial building
damaged or destroyed by fire or other natural causes.
B. Rehabilitation or remodeling to an existing residential unit, commercial or
industrial building, and additions to an existing residential unit or commercial or
industrial building.
C. Secondary residential units, constructed on developed residential property
and meeting all state and City requirements for such units.
D. Existing improvements that are converted from an existing permitted use
to a different permitted use, provided that no additional area of the property is disturbed
as a result of such conversion.
E. Development within a Project Area that was being improved or had been
improved prior to the effective date of this Ordinance.
F. Construction of a family residential unit upon property wherein a mobile-
home, installed pursuant to an installation permit, was previously located prior to the
effect date of this Ordinance.
G. Guest dwellings as defined in Title 25 of the City of Palm Desert Municipal
Code.
SECTION 3.46.120. FEE CREDITS AND WAIVERS. The City may grant to
owners or developers of real property, a Credit against the Fee that would otherwise be
charged pursuant to this Ordinance, for the dedication of land determined to be
necessary for inclusion in the MSHCP Conservation Area. The amount of the Credit
granted shall be determined by an estimate of the fair market value of the land
dedicated. Any Credit granted by the City shall be given in stated dollar amounts only.
An applicant for a proposed development may apply for Credit to reduce the amount of
the Fee required to be paid prior to approval of the development. Any Credit granted
and the amount of the Fee to be paid shall be included as a condition of approval for the
development. If an applicant has received the development approval from the City and
has not previously applied for a Credit to reduce the amount of the Fee required to be
paid, an applicant may apply for such Credit prior to issuance of a grading permit for the
development. Any Credit granted and the amount of the Fee required to be paid shall
be included as a condition of approval on the grading permit issued for the
development.
SECTION 3.46.130. SEVERABILITY. This Ordinance and the various parts,
sections, and clauses thereof, are hereby declared to be severable. If any part,
sentence, paragraph, section, or clause is adjudged unconstitutional or invalid, the
remainder of this Ordinance shall not be affected thereby. If any part, sentence,
Page8of9
paragraph, section, or clause of this Ordinance, or its application to any person entity is
adjudged unconstitutional or invalid, such unconstitutionality or invalidity shall affect
only such part, sentence, paragraph, section, or clause of this Ordinance, or person or
entity; and shall not affect or impair any of the remaining provision, parts, sentences,
paragraphs, sections, or clauses of this Ordinance, or its application to other persons or
entities. The City Council hereby declares that this Ordinance would have been adopted
had such unconstitutional or invalid part, sentence, paragraph, section, or clause of this
Ordinance not been included herein; or had such person or entity been expressly
exempted from the application of this Ordinance.
SECTION 3.46.140. EFFECTIVE DATE. This Ordinance shall take effect
immediately upon issuance of the appropriate permits authorizing take in connection
with the MSHCP by the U.S. Fish and Wildlife Service and California Department of
Fish and Game, including, without limitations, the incidental take permits for covered
species pursuant to Section 10(a)(1)(B) of the Federal Endangered Species Act and
section 2800 of the California Fish and Game Code . However, in no event shall this
Ordinance take effect prior to sixty (60) days after the date of its adoption. Upon the
effective date of this Ordinance, Ordinance No. 1151 , also known as the Fringe Toad
Lizard Mitigation Fee Ordinance, shall be repealed and superceded in its entirery by this
Ordinance.
PASSED, APPROVED, AND ADOPTED, this 24th day of January, 2008 by the
following:
Mayor, Jean Benson
City of Palm Desert
ATTEST:
Rachelle Klassen
City Clerk
Page 9 of 9
RESOLUTION NO. 08-8
A RESOLUTION OF THE CITY OF PALM DESERT ADOPTING THE LOCAL
DEVELOPMENT MITIGATION FEE SCHEDULE APPLICABLE TO NEW
DEVELOPMENT WITHIN THE CITY OF PALM DESERT
WHEREAS, the City Council of the City of Palm Desert ("City") finds that the
ecosystems of the City, Coachella Valley and surrounding mountains located in central
Riverside County, and the vegetation communities and sensitive species they support
are fragile, irreplaceable resources that are vital to the general welfare of all residents;
and
WHEREAS, these vegetation communities and natural areas contain habitat
value which contributes to the City's and the region's environmental resources; and
WHEREAS, special protections for these vegetation communities and natural
areas must be established to prevent future endangerment of the plant and animal
species that are dependent upon them; and
WHEREAS, adoption and implementation of Ordinance oa-a (the
"Ordinance") and this Resolution will help to enable the City to achieve the conservation
goals set forth in the Coachella Valley Multiple Species Habitat Conservation
Plan/Natural Community Conservation Plan ("MSHCP"), adopted by the City Council on
October 11, 2007, to implement the associated Implementing Agreement executed by
the City Council on October 11, 2007, and to preserve the ability of affected property
owners to make reasonable use of their land consistent with the requirements of
applicable laws, which could include the National Environmental Policy Act ("NEPA"),
the California Environmental Quality Act ("CEQA"), the Federal Endangered Species
Act ("FESA"), the California Endangered Species Act ("CESA") and the California
Natural Communiry Conservation Planning Act ("NCCP AcY'); and
WHEREAS, the purpose and intent of the Ordinance and this Resolution is to
establish a Local Development Mitigation Fee to assist in the maintenance of biological
diversity and the natural ecosystem processes that support this diversity; the protection
of vegetation communities and natural areas within the Ciry, Coachella Valley and
surrounding mountains located in central Riverside Counry which are known to support
threatened, endangered or key sensitive populations of plant and wildlife species; the
maintenance of economic development within the City by providing a streamlined
regulatory process from which development can proceed in an orderly process; and the
protection of the existing character of the City and the region through the
implementation of a system of reserves which will provide for permanent open space,
community edges and habitat conservation for species covered by the MSHCP; and
WHEREAS, as a Member Agency of Coachella Valley Association of
Governments ("CVAG"), the City participated in the preparation of a certain "Local
Development Mitigation Fee Nexus Report", dated January 15, 2007 ("Nexus Report")
prepared pursuant to California Government Code, Section 66000 et seq., the Mitigation
Fee Act; and
WHEREAS, the City has reviewed the Nexus Report, and hereby finds that
future development within the City will substantially adversely affect the natural
ecosystems and covered species within the City, as identified in the MSHCP, and that
unless such development contributes to the cost of acquiring land to preserve these
natural ecosystems and covered species, the conservation goals of the MSHCP will not
be met; and
WHEREAS, the City finds that the Nexus Report proposes a fair and equitable
method for distributing a portion of the cost of implementing the MSHCP and mitigate
the impact caused by new development; and
WHEREAS, pursuant to the Mitigation Fee Act, the Ciry Council adopts the
Nexus Report, a copy of which is on file in the City Clerk's office, and the findings
contained therein which provide additional support for the fees adopted by this
Resolution; and
WHEREAS, in addition to the foregoing, the Ciry Council hereby adopts in their
entirety the findings contained in Section 2 of the Ordinance and any fees adopted by
this Resolution shall be based on these findings; and
WHEREAS, pursuant to Government Code sections 66016, 66017 and 66018,
the City has: (a) made available to the public, at least ten (10) days prior to its public
hearing, data indicating the estimated cost required to provide the facilities and
infrastructure for which these development fees are levied and the revenue sources
anticipated to provide those facilities and infrastructure; (b) mailed notice at least
fourteen (14) days prior to this meeting to all interested parties that have requested
notice of new or increased development fees; and (c) held a duly noticed, regularly
scheduled public hearing at which oral and written testimony was received regarding the
proposed fees.
Page 2 of 4
NOW, THEREFORE, the City Council of the City of Palm Desert does hereby
resolve as follows:
Section 1. Findings. The recitals set forth above are hereby adopted as
findings in support of this Resolution. The findings contained in both the Nexus Report
and Section 2 of the Ordinance are also adopted herein as findings in support of this
Resolution.
Section 2. Definitions. The terms of this Resolution shall have the same
meaning ascribed to them in Section 4 of Ordinance No. 08-8
Section 3. Fee Schedule. There is hereby adopted the following fee schedule
for the Local Development Mitigation Fee:
(1� Residential, density less than 8.0 dwelling units per acre - $1,284
per dwelling unit
(2) Residential, density between 8.1 and 14.0 dwelling units per acre -
$533 per dwelling unit
(3) Residential, density greater than 14.1 dwelling units per acre - $235
per dwelling unit
(4) Commercial - $5,730 per acre
(5) Industrial - $5,730 per acre
Section 3. CEQA Findings. The City Council hereby finds that in accordance
with the California Environmental Quality Act ("CEQA") and the CEQA Guidelines the
adoption of this Resolution is exempt from CEQA pursuant to Section 15061(b)(3) and
Public Resources Code section 21166.
Section 4. Severability.This Resolution and the various parts, sections, and
clauses thereof, are hereby declared to be severable. If any part, sentence, paragraph,
section, or clause is adjudged unconstitutional or invalid, the remainder of this
Resolution shall not be affected thereby. If any part, sentence, paragraph, section, or
clause of this Resolution, or its application to any person entiry is adjudged
unconstitutional or invalid, such unconstitutionality or invalidity shall affect only such
part, sentence, paragraph, section, or clause of this Resolution, or person or entity; and
shall not affect or impair any of the remaining provision, parts, sentences, paragraphs,
sections, or clauses of this Resolution, or its application to other persons or entities. The
City Council hereby declares that this Resolution would have been adopted had such
unconstitutional or invalid part, sentence, paragraph, section, or clause of this
Resolution not been included herein; or had such person or entity been expressly
exempted from the application of this Resolution.
Page 3 of 4
Section 5. Effective Date. This Resolution shall take effect immediately upon
issuance of the appropriate permits authorizing take in connection with the MSHCP by
the U.S. Fish and Wildlife Service and California Department of Fish and Game,
including, without limitation, the incidental take permits for covered species pursuant to
Section 10(a)(1)(B) of the Federal Endangered Species Act and section 2800 of the
California Fish and Game Code. However, in no event shall this Resolution take effect
prior to sixty (60) days after the date of its adoption.
PASSED, QPPROVED AND ADOPTED at a regular meeting of the Palm Desert City
Council, held on this 24m day of January, 2008, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor, Jean Benson
City of Palm Desert
ATTEST:
RACHELLE KLASSEN, City Clerk
City of Palm Desert, California
Page 4 of 4
LOCAL DEVELOPMENT MITIGATIDN FEE
COACHELLA VALLEY
ASSOCIATION OF G4VERNMENTS
.1ANUARY 15, 2007
MuniFinancial
Oakland Office
1700 Broadway, 6`"Floor Anaheim, CA Phoenix,AZ
Oakland, California 94612 Industry, CA Seattle,WA
Tel: (510) 832-0899 Jacksonville, FL Temecula, CA
Fax. (510) 832-0898 Lancaster, CA Oakland, CA
www.muni.com
TAB LE C3 F C O NTENTS
EXECUTIVE SUMMARY...........................................................................IV
Introduction iv
Plan Area Land Use iv
Need for Habitat Conservation iv
Cost of Habitat Conservation v
Cost Allocation and Fee Schedule v
Mitigation Fee Act Findings vi
Implementation vi
CHAPTER 1: INTRODUCTION ................................................................. 1
Habitat Conservation Planning Process 1
MSHCP and the Incidental Take Permit 2
Local Development Mitigation Fee 2
CHAPTER 2: PLAN AREA LAND USE...................................................... 4
Plan Area Boundaries 4
Existing Land Use 6
New Development within the Plan Area 7
CHAPTER 3: NEED FOR HABITAT CONSERVATION ................................ 1 O
Habitat Conservation Goals 10
Covered Species and Natural Communities 10
Identifying the MSHCP Reserve System 11
CHAPTER 4: COST OF HABITAT ACQUISITION....................................... 15
Amount of Habitat Acquisition 15
LDMF Financing Plan 15
Financing Alternatives 22
CHAPTER 5: COST ALLOCATION AND FEE SCHEDULE........................... 24
New Development Acreage 24
Net Land Acquisition Costs Per Acre 24
Fee Schedule 25
CHAPTER 6: MITIGATION FEE ACT FINDINGS ....................................... 28
Purpose of Fee 28
Use of Fee Revenues 28
Benefit Relationship 29
Burden Relationship 29
Proportionality 30
CHAP7ER 7: IMPLEMENTATION............................................................ 31
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Local Development Mitigation Fee Coachella Valley Association of Governments
Adoption of LDMF By local Permittees 31
Adoption of Administrative Guidelines 31
Programming Revenues and Projects 31
Annual Inflation Adjustment 32
Reporting Requirements 32
APPENDIX: CASH FLOW ANALYSIS.....................................................A-1
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LIST OFTABLES
Table E.1: Fee Schedule (2008 dc�llars)............................................................................................vi
Table 2.1: Plan Area Fxisang Land Use...........................................................................................7
Table 3.1: C�vered Species Under the �1SHCP............................................................................12
Table 3.2: Natural Communities Included in the MSIiCP..........................................................13
Table 4.1: l�1Sf(CP Reserve System.................................................................................................16
Table 4.2: Land Acquisition & Improvement Fund T�tal Revenues & Expenditures
(nominal dollars).................................................................................................................................17
Table 4.3: �4SFiCP Reserve System Local Permittees I_and Acquisition Costs........................20
Table 4.4: Average Cost Per Acre....................................................................................................21
Table 5.1: (;overed Species and Natural Communities Found In L'rban Arc;as.......................24
Table 5.2: Cost Per Acre (2008 dollars)..........................................................................................25
Table �.3: Nc:e Schedule (2008 dollars)............................................................................................26
Table A-1: Land Acquisition & Improvement Nund..................................................................A-2
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EXECUTIVE SUMMARY
INTR�DUCTION
Since 1994 local, state, and federal agencies responsible for regulating development and
protecting habitat in the Coachella Valley have been participating in an extensive and
comprehensive planning process. This planning effort has produced the Coachella Valley
Multiple Species Habitat Conservation Plan/Natural Community Conservation Plan
(:VfSHCP). The policy objectives of the MSI�CP are (1) to conserve adequate habitat in an
unfragcnented manner for the most effective preservation of species and the conserved
natural communities, and (2) to simplify compliance with environmental laws b5� providing
an efficient and streamlined regulatory approach.
(�ne of the primary requirements of the �1SHCP is the establishment of a Reserve Sy�stem of
lands to provide habitat for Covered Species and the conserved natural communides. An
additional purpose is the monitoring and management of the Reserve S�-stem. A i.ocal
llevelopment ��itigauon Fee (LDMF) imposed on new development projects wilI be a
primary source �f funding for the habitat acquisition program under the �1SF ICP. This
report documents the legal and polic�� basis to support adoption of the I.D14F by Coachella
Valle��cities and the Countv of Riverside.
PLAN AREA LAND USE
The Coachella Valley is a broad, low elevation, northwest-southeast trending valley
cc�mprising the westernmost limits of the Sonoran Desert. The Valle}� is located in the
central portion of Riverside Countt�, approximately 100 miles east of I.os Angeles. The I'lan
r'lrea boundaries include approximately 1.2 milli�n acres.
Growth projections were based on an extrapolation �f prior trends based on an analy�sis of
informatic>n from the California Department of Kesources �'armland �1�tapping and
�tonitoring Program and building permit data by the Coachella Valley tlssociation of
CGc�eernments (CVAC'r). CVAG calculated that the rate of development in the Plan Area has
at•c:ra�;ed 1,370 acres per y-ear based on development over the period 1988 to 2004. The
LD�iF analysis assumes that this historical average annual rate will continue throu�;h the �0-
y�ear planning horizon (for the acquisition program) of the LD�1N Financin� Plan. At this
rate a total of 68,500 acres will be devel�ped (�0 y�ears x 1,370 acres per year).
NEED FOR HABITAT CDNSERVATION
Identif�-ing the :�1SHCP Reserve System was the result of an extensive and comprehensive
analysis conducted by an inter-agencv planning team and led by CVAG. The planning team
used the best available scientific and c�mmercial data standard t� develop the VtSHCP.
The planning team de��eloped a list of 27 Co�ered Species and 27 natural communit�es to
provide habitat for the Covered Species. This planning process resulted in the identification
of 746,600 acres across 21 consen-ation areas, from which the �iSHCP Reser�-e S�•stem will
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be established. The Reserve Syste:m ensures the consennation of these species and natural
communities as new development occurs. Without new development there would be no
need to establish the Reserve System because the toss of existing habitat would not occur as
a result of de��elopment activities.
COST OF HAeITAT CONSERVATION
Of the 746,600 acres in the Conser�ation Areas, a maximum of 22,660 acres may be
developed, resulting in a Reserve System of 723,940 acres. r'�s of November 2006, just over
three-quarters of the :VISHCP Reserve System, or 5�7,100 acres, had already been conserved.
Complementary Conservation and state and federal contributions to MSI iCP
implementauon will conserve an additional 51,840 acres from November 2006 forward. An
additional 7,800 acres are in areas where the only Conservation Objective is maintaining the
fluvial sand transport function through flood control standards and other regulatory
mechanisms; these 7,800 acres will not be acquired. This leaves 107,200 acres to be
conserved. Of this, 10,800 acres are non-Permittee public and quasi-public lands, and 7,�00
acres are Permittee-owned lands that will be conserved in perpenzity under the :�1SHCP. As
of November 2006, this left 88,900 acres remaining to be acquired or otherwise conservcd
b}' the Permittees. The I_ll�fF w-ill be the primary funding source for this habitat acquisition
program.
The primary objective of the i.,D�fF Financing Plan is to dem�nstrate that sufficient funding
is available for the habitat acquisition program. A financial model was used to calculate the
Ievel of the LD�fF ne;eded to fully Fund the habitat acquisition program after deducting
other anticipated revenues and interest earnings on fund balances.
All LDM� revenue and habitat acquisition expenditures would be accounted for in a i.and
Acquisition & Improvement Fund. The (;oachella Valley Conservation Commission
(CVCC), a jc�int powers authorin- that is being created to implemc:nt the :�1SF-iCP, would
mana�e the Fund as part of these responsibilities. CVCC would stop collectin�; LD�1F
revenue and would terminate the Fund after the 50-}'ear planning hori•r.�n, assuming the
acquisition program has been c�mpleted.
(�ther key objectives �f the Financing Plan include purchase of all habitat conservauc�n lands
as scx>n as feasible within 30 �-ears while LD�VII� revenue will c�ntinue for �0 }�ears. This
approach requires a financing mechanism. The �1SI�CP Fndowment Fund �vould provide
this financing as needed during the 30-}�ear acquisiti�n period, w�ith funds repaid �ver the
following 20}�ears to match the 50-}�ear planning hc>riz�n.
COST ALLOCATlON AND FEE SCHEDULE
Table E.1 presents the Local Development l�fiugation Fee schedule f�r the �1SI�(;P in 2008
dollars, the first y�ear that the fee is anticipated to be collected. The fee would be imposed
per dvvelling unit for residential land uses and per acre for nonresidential land uses.
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Local Development Mitigation Fee Coachella Valley Association of Governments
Table E.1 : Cost Per Acre (2008 dollars)
2008 2008-2037
Local Development Mitigation Fee Revenue' $ 7,850,000 $235,500,000
Total Acres 2 1,370 41,100
Cost Per Acre $ 5,730 $ 5,730
' Net revenue required irom deve/opment mitigation fee reHenue in rea/2008 dollars. The
2008-2037 revenue estimate excludes the fee revenue needed to repay the Endowment loan
during the 2038-2057 period.
z Acres of new development.
Source:MunrFrnancia!
M/T/GAT/DN FEE ACT F�I N D I N G S
llevelopment impact fees are one-time fees, t}�pically paid when a building permit is issued,
imposed on development projects b��local agencies responsible for regulating land use (cities
and counties). The five statutory findings required by the Mitigation Fee Act for adoption of
the i.DMF' are summarized in Chapter 6 and supported in detail by the remainder of the
report.
IMPLEMENTATION
The mit�gation fee would be collected at time of grading, building, or other appropriate
permit issuance. T� implement the fee this report recommends CVCC do the f�llowing:
• Assist I.ocal Permittees in adopting an ordinance and resoludc�n imposing the
I.11MF<>n new development and that includes an inflatic�n adjustment to the fee;
• ��'ork �vith L�cal Permittees to develop administrative guidelines fc>r the I.DNIF
program.
• Program fee revenues to specific acquisition projects and related espenditures,
including administrative costs;
• Altc:r the scope of the planned acquisiaon or related impro��ement costs from
those shown in this report if appropriate; howevc;r, all expenditures must
conunue to fund expansion of the inventory of land conserved for habitat under
the guidelines of the �1SHCP.
• Identif�� an apprc�priate inflation adjustment and recalculate the fee annuall}� for
each T,�cal Permittee to adopt.
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CHAPTER 1 : INTRODUCTION
This chapter provides background on the Coachella Valley habitat consen ation planning
process that led to the need f�r a Local Development Mitigation Fee (LDMF).
This report differs from the January 12, 2006 draft primarily because of the following
changes in assumptions:
• Land acquisition needs were ree��aluated resulting in the planned acyuisition of
additional acreage.
• An updated market study has resulted in higher land cost estimates.
• The City of llesert �I�t Springs has chosen not to participate in the MSHCP.
This report therefore reflects new development projections excluding the City of
llesert Hot Springs.
HABITAT CONSERVATION PLANNING PROCESS
Since 1994 local, state, and federal agencies responsible for regulating de��elopment and
prote:cting habitat in the Coachella Valley have been participating in an extensive and
comprehensive planning process. The purpose of this process is the preparation of a plan
for multiple species habitat conser��ation that simultaneously allows continued economic
growth from private develc>pment and associated public infrastructure projects. Approval of
the ti1Si I(:P by state and federal wildlife agencies will allow the loss of natural communities
and taking of species incidental to development and infrastructure projects, provided the
mitigation and other measures set forth in the �1SI�CP are sausfied.
This planning effort has prc�duce:d the Coachella Ualley Multiple Species Habitat
Conservation Plan/Natural Community Conservation Plan (�4SHCP). 'The poficv
objectives of the �-iSHCP are (1) to cc>nserve adequate habitat in an unfragmented manner
for the effc;ctive preservation �f species and the conserved natural communiues, and (2) to
simplify cc>mpliance with CEQA, CESA, :�ICCP Act, FESA, '.�iF.,PA, and other laws by
providing an efficient and streamlined re�,n.ilatory approach. The agencies that have
participated in the ��Sf-iCP include:
• Local government - cities in the Coachella Valle}�, Ri��erside County, and fi��e
special districts�;
• Regional a�encies - Coachella Valley Ass�ciation of C'���•ernments (CVAG);
• State agencies - California llepartment of Transportation (Caltrans), California
Department of Parks and Recreation, Coachella Valley Mountains Conservanc}'
(CVVIC)2 and California State llepartment of Nish and Game (CD�G); and
1 In addition to Riverside Counri�, local a�encies include the cities of Cathedral Ciri�, Coachella, Indian ��G'clls,
Inciio, La Quinta, Palm Desert,,Palm Sprin�;s, and Rancho �lirage, as well as the Coachella Valley ��'ater
District, Imperial Irrigation District, Riaerside Counry Flood Control and VG'arer Conservation District,
Riverside Counry Regional Parks and <)pen Space District, and Riverside Counn� �X'aste Resources
�fanagement District.
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• Federal agencies - U.S. Fish and Wildlife Service (USFWS), U.S. Bureau of I.and
;�'fanagement, U.S. Forest Sen�ice,and National Parks Service.
Implementation of the �IS��CP will fully mitigate the impacts on Covered Species and
conserved natural communities from new devel�pment and associated public infrastructure
projects in the Coachella Valley.
M S H CP AND THE INCIDENTAL TAKE PERMIT
Adoption of the MSHCP would enable the Wildlife Agencies (Cll�C'J and L;SN�'S) to grant
a Permit for the Take of Covered Species ("Permit").3 Permittees will include the local
g�vernments in the Coachella Valley listed above ("Local Permittees") and the three state
agencies (excluding CDFG) listed above ("State Permittees"). "Covered Species" include
species that are endangered, threatened, of special concern, or othenvise covere:d by the
MSHCP. "(:onserved natural communities" refers to thc�se natural communities protected
under the �ZSHCP pursuant to the Natural Communit�� Conservation Planning Act�f 2002.
This type of permit is c�ften referred to as an "Incidental Take Permit" in that it enables the
Permittee to engage in an otherwise lawful acti��in� that, as an attendant impact, causes the
loss of Covered Species. The Permit�vould als� allow limited take of habitat and species for
scientific purposes, also kn�wn as "scientific take".
The Permit will enable the Permittc:es to allow or en�;aKe in acu��iues that result in the loss of
C�vered Species and the consen ed natural communities without implementin� mitigation
requirements be}'ond those required b}' the �fSHCP. F�r example, l�cal go��ernments will be
able to approve new development and the state will be able to construct highway�
infrastructure in the (:oachella Valley. As long as the Permittees remain in compliance with
the :�'ISHCP they will be able to conduct these t}�pes of activities without developing and
implementing additional project-specific miti�;ation measures �vith respect to the Co�•ered
Species and conserved natural communities,except as ma}' be required b}�the :�fSI ICP.
Coachc;lla Valle}� C�nservau�n Commissi<>n (CVCC) is a joint powers authorit}� that is bein�
created to implement the �iSHCP. Nailure to adequatel}� implement the 1��1SI-�CP, such as not
acquiring the lands necessary to protect habitat (described below), could result in the��'ildlife
A�encies suspending�r revol:ing the Permit.
LOCAL DEVELOPMENT MITIGATION FEE
The primary requirement of the �TSI I(;P is the establishment and ongoing management of a
Reserve S�-stem of lands to pro��ide habitat for Co��ered Species and the conser�ed natural
communiues. i�luch of this �iSHCP Reserve Syste:m already exists. Portions of it will be
established through Complementar}� Conservadon efforts and contribuu�ns b}� state and
federal agencies. Substantial lands remain to be purchased from private landowners to
Z CV�iC prepared the�iSHCP under contract to CV�1CT,and will also Ue a Pertnittee.
3 The permit would Ue granted b�• I;SFV('S undcr thc Federal Endangered Species Act, Section 10(a), and b}�
CDFCJ under che California Natural Communiry Conservation Planning Act, California Fish and CTamc
Code Section 2835.
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Local Development Mitigation Fee Coachella Valley Association of Governments
complete the Reserve System as part of the Permittees' mitigation. The I,ocal Permittees are
rc;sponsible for this habitat acquisition program.
A I,ocal Development �Vlitigation Fee (LD�1F) imposed on new de;velopment projects will
be a primary source of funding for the habitat acqwsition program under the NISHCP. This
report documents the legal and policy basis to support the adoption by local agencies in the
(:oachella Valley of the i.Dl�1F, a type of de��el�pment impact fee under Californta
Government Code Section 66000 et seq. The fee would be adopted by Coachella Valley
cities and the County of Riverside and collected from new development under their
jurisdiction within the Plan Area. The LD�IN is necessary for issuance of the Permit because
the Wildlife Agencies require that the i.ocal Permittees identify sufficient funding for
implementation of the MSHCP.
A primary benefit to new development from the LD�VIF is avoidance of the process to
determine mitigauon for impacts to Covered Species and habitat on a project-by-project
basis. Implementation of the �1SHCP provides a comprehensive approach to mitigation for
such impacts for new development thr�ughout the Coachella Valley• Without the Permit
new development in the Coachella Valley w�uld face a significant constraint because
projects could have to gain separate approval from CllI�G and the USFWS before
proceeding. Project-by-project regulatory approval for habitat mitigation would add
substantially to the time; and c�st of the development procc;ss. In addition, the iVISE fCP
pr�vides a basis for mitigating the impacts to Covered Species and conserved natural
communities associated with the development of public infrastructure necessary to serve
new dc:velopment.
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C HAPTER 2 : P LAN AREA LAN D U S E
This chapter describes the boundaries of the area covered by the MSHCP (the "Plan Area"),
existing land use, and estimates of growth within the Plan Area.
PLAN AREA BOUNDARIES
The Coachella Valley is a broad, low elevation, northwest-southeast trending valley
comprising the westernmost limits of the Sonoran Desert. The Valley is located in the
central portion of Riverside Count}�, approximately 100 miles east of I.os Angeles.
The Plan Area encompasses the Coachella Valley and the surrounding mountains up to the
ridgeline. The Plan Area extends west to Cabazon where it is bounded by the range line
common to Range 1 East and Range 2 East. This is approximately the limit of the Sonoran
or Colorado Desert in the San Gorgonio Pass area. To the east the Plan Area extends to the
range line common to Range 13 East and Range 14 L'ast. Lither the ridgeline of the Litde
San Bernardino :�lountains or the boundary line with San Bernardino County where the
rid�eline extends north of thc: county line defines the northern boundary. (�n the s�uth,
either the ridgeline of the San Jacinto and Santa Rosa �lountains or the boundary line with
San Die�o or Imperial (:ounties forms the Plan Area boundary.
Figure 1 presents a �eneralized map of the Plan Area. The map inclicates how areas �vere
analyzed to develop the I�fSFICP Reserve S}'stem. The Reserve System is the ��1Sf�CP
preferred alternative and repre;sents the entire area necessary to protect the Covered Species
and the conserved natural communities identified in the MSHCP (see Chapter 4 for more
explanation).
The categories of land identified on the map include:
• Agricu�tural Land: Lands currendy primaril}� used for agricultural pr�ducti�n.
Because agricultural lands provide biological ��alue for Covered Species,including
habitat patches and foraging habitat, conversion of this land to urban use would
result in a loss of habitat under the :�iSHCP.
• Modeled Species Habitat: i.ands that .vere m�deled using physical data anal��zed
as map la}�ers with a geographical informati�n system (G1S). The purpose of the
mc�deling was tc� assess the relauve biological value of lands within the Plan Area
and assist in developin� the ;�1SHCl� Reserve S}'stem. Substanuall}� all c�f the
:�1SII(:P Reserve S}'stem is identified as part of these modeled habitats. Due to
the great effort involved in mappin�; and modeling vacant parcels within the
urban areas, thesc lands were excluded from the CV�'ISHCP anal}�sis, thou�;h
these parcels do contain habitat.
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Plan Area Context Map
Coachella Valley MSCHPMCCP
�l�Agricultural Land
�;'°� Developed Areas
F Inaan Reservadon Lands
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Modeled Speaes Habitat
- Natural Communities without Modeled Habitat
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Local Development Mitigation Fee Coachella Valley Association of Governments
• Natural Communities without Modeled Habitat: I,ands rhat contain natural
communities but were not modeled during the planning process because either
(1) they are Indian Reservation lands not subject to the MSHCP, (2) they are
already protected habitat and are included in the MSHCP Reserve S}'stem, or (3)
not part of the �4SHCP.
• Developed Areas (Urban and Rural): I_ands that are developed and vacant or
partially vacant lands within developcd areas. These vacant or partially vacant
lands represent current or potential habitat for Covered Species and the
conserved natural communities identified in the �VISHCP.
As the map indicates, substantially all the land within the Coachella Valley was subject to
modeling to assist in making a comprehensive determination regarding which lands should
be included in the �1SI I(:P Reserve S}'stem.
EXISTING LAND USE
The Plan Area boundaries include approximately 1.2 million acres, or approximately 1,885
square miles. Table 2.1 summarizes the existing acreage within the Plan Area b}' land use.
The acreage indicated as Urban and Rural in the table corresponds to the lle��eloped Areas
shown in Figure 1. The MSII(:P Reserve S}�stem will be composed of much of the Open
Space and 1'rivate Conservation i.ands plus some Public and Private '_�on-Consen�atic�n
Lands to be acquired with funding fr�m the LD�IN and other sources. Indian Reservation
lands are included in the: Plan Area but not subject to the ;�ISHCP, reducing the total area
covered by the :�1SHCP to approximatel�� 1.1 million acres.
�MuniFinancial �
Local Development Mitigation Fee Coachella Valley Association of Governments
Table 2.1: Plan Area Existing Land Use
Percent o
Totai Acres Plan Area
Urban 67,400 5.9%
Rural, Rural Residential 92,500 1.1%
Agriculture 84,900 7.5%
Lake (includes Salton Sea)' 43,500 3.8%
Reservoi� 800 0.1%
Wind Energy Uses 4,400 0.4%
Quarry 900 0.1%
Landfill 400 0.0%
Public and Private Non-Conservation Lands3 320.600 28.2%
Open Space-Public and Private Conservation Lands4 601.000 52.9�
Total Area Covered By Plan 1,136,400 100.0%
Indian Reservation Lands(Not Covered By Plan) 69.600
Total Plan Area 1,206,000
Includes Salton Sea and other natural water bodies.
`Includes Lake Cahuilla, Whifewater River recharge ponds,and other aRificial water bodies.
3lncludes private/ands which are primarily undeveloped and public lands used for non-conservation
purposes. Public lands are owned 6y Riverside County, County Flood Control, Metropolitan Water District,
the State Lands Commission, cities, U.S.Army Corps of Engineers, Coachella Valley Water District, U.S.
Bu�eau of Reclamation,and the U.S.military.
°Includes public lands dedicated to open space and conservation purposes and private lands owned by
land trusts or conservation organirations,or protected by a conservation easement or deed restriction.
Source:Coachel/a Valley Multiple Species Ha6itat Conservation P/an and Natural Community
Conservation P/an;MuniFinancial
NEW DEVELOPMENT WITHIN THE PLAN AREA
��'ith the assistance of data develc�ped by Cc�achella Valley Association of Governments
(CVAG) staff, MuniFinancial estimated the total amount of new de��elopment anticipated
within the Plan Area. These projections are usc:d by the LD�f� Financing Plan to allocate
habitat acquisiu�n program costs to new develc�pment and to calculate the Local
llc:vel�pment Vfitigation Fee (see Chapter 4).
Planning Horizon
The LDi�1F Financing Plan uses a �0-year planning horizon to estimate future g-rc�wth and
assumes that the fee could be discontinued after that time. The Financing Plan assumes a 30-
��ear land acquisition program followed b}� a 20-year amortizauon of remaining program
costs.
The selection of a planning horizon considered that the MSf I(;P provides a comprehensive
appr�ach to mitigating habitat impacts from new development in the Coachella Valle}'• The
first acre and last acre of new development benefit equall}' from the I�tSHCP. �1ore
�MuniFnancial �
Local Development Mitigation Fee Coachella Valley Association of Governments
importantly, the si�e of the �VISHCP Reserve System is unaffected by the level c�f new
development and habitat acquisition program costs are fixed.
If habitat acquisition costs were spread across all new development through build out of the
Plan Area then the Local Permittees would not fully fund the MSHCP until construction of
"the last home" in the Coachella Valley. This approach would result in a planning horizon of
over a hundred years given recent developmcnt trends and the amount of land available for
development.4 This is not a practicable planning horizon for the following reasons:
• Permit Term: The Wildlife Agencies will issue the Permit for a 75-}�ear period
so the planning h�rizon for the Lll:�IF should not extend beyond that time
frame.
• Permit Compliance: The habitat acquisition program needs to be accomplished
within a reas�nable period of time, preferably long before expiration of the
Permit. Otherwise, the Wildlife Agencies could determine that the Permittees are
not fully funding their obligatic�ns under the MSHCP and therefore are not in
compliance with the Permit. '.�Ion-compliance would constrain economic
development within the region by requirin� each devel�pment project to
separately mitigate habitat impacts.
• Land acquisition cost inflation: Acquiring land s�oner rather than later will
reduce total costs by limiting the impact of land price inflation. Land, particularly
residential land, often increases faster than the average price inflati�n �f all goods
and sc;nices as development in a region intensifies. Consequend}�, early� funding
of the habitat acquisition pr�gram will reduce the total real (inflati�n-adjusted)
cost of the program.
• Lost Conservation Opportunities: Given current development pressure, if land
acquisiuon is not completed within the first 30 years, development within the
consen�ation areas could impede establishment of the reserve system.
• Experience with Other Public Facility Financing Plans: Public facility master
plans and associated financing plans typically use a 20- to 30-year planning
hori�on because this is a reasonable period for estimatin� growth, plannin�;
improvements, and amortizing capital costs. Growth factors such as land, water,
and other physical resource cc�nstraints, the availability and cost of infrastructure,
and local land use policy are difficult to predict o�-er long periods. Science,
technolo�,n�, and public policy can change the improve:ments needed to
accommodate growth. Finally, the public financial markets n'j�ically do not
cxtend financing for public infrastructure be}'�>nd 30 years.
A 50-year planning horizon �vas se:lected gi�ren these consideradons. The 50-y�ear horizon,
though longer than most public facility financin� plans, is less than the 75-y�ear term of the
Permit. This difference represents a conservaave approach b}�pro�•iding a 25-}�ear cushion in
case additional revenues arc needed to complete the habitat acquisition pro�,>ram at the end
of the �0-��ear planning horizon. At that point the Local Permittees (Coachella Valley cities
4 The amount of undeveloped land available for de�•elopment is defined b}• land use policies contained in the
existing CTeneral Plans of cities and the Counn•within the Plan Area.
�IV�niFinancial g
Local Development Mitigation Fee Coachella Valley Association of Governments
and the County) could continue to cc>llect the fee from new development until all habitat
acquisition program costs are funded.
This approach also does not unfairly burden near-term development with the entire cost of
the program because it spreads costs over such an extended (�0-��ear) period.
In sum, a 50-year plannin� horizon, by being reasonable, conservative, and flexible ensures
that the Permittees can provide the maximum practicable funding and benefit to comply
with the Permit through fully funding of the MSHCP.
Growth Projections
Gr�wth projections were based on an extrapolation of prior trends based on an analysis of
information from the California Department of Resources Farmland �Tapping and
Monitoring Program and building permit data conducted by the Coachella Valley
Association of Governments (CVAG). The estimate of acres developed per year was based
on historical development during the period �f 1988 to 2004 for the Plan Area. This time
period is a reasonable basis for projection purposes because it captures the volatility of
development during periods of recession and expansion. The Plan Area analyzed excluded
[ndian Resen•ation land.
Geographical lnformauon S}'stem (GIS) co��erages of Riverside Count}� by the California
Department of Resources Farmland i�fapping and IVlonitoring Program provided data for
the 1988 to 2004 period. This data shows different types c�f agricultural uses as well as
developed areas.
Based on the analysis described above, CVAG estimated that the rate of development in the
Plan Area excluding Indian Resen�ation land has ave;raged 1,370 acres per year.
The LD�fF anal}�sis assumes that the: historical average annual rate �vill continue thr�ugh the
50-��ear planning horizon of the LDMF Financing Plan. At this rate a total of 68,�00 acres
will be developed (50 }�ears x 1,370 acres per �-ear). The current General Plans of the
Coachella Valle}' ciues and the County of Riverside have sufficient unde��elc�ped land zoned
for urban uses within the Plan Area to accc�mmodate this level of development. The
development projecti�n of 68,500 acres is the total amount of development that the i,Di�fN
Financin�Plan assumes is subject tc> and will �ay the fee. Hc>wever, the fee may be increased
c>r extended if necessar�� to full�� fund the habitat acquisidon program, as menuoned abo��e.
�MuniFnancial �
C HAPTER 3 : N EED FO R HAB ITAT
CONSERVATtON
Identifying the �iSHCP Reserve System was the result of an extensive and comprehensive
analysis conducted by an inter-agency planning team and led by� CVAG. The planning team
used the best scientific standard and commercial data available to develop the ;�iSHCP. This
chapter describes how the planning team identified lands to include in the :VISHCP Reserve
Svstem.
HABITAT CONSERVATION GOALS
The MSI�CP was developed to achieve the following habitat conservation goals:
• Represent native ecos}�stem types or natural c�mmunities across their natural
range of variation in a s}�stem of conserved areas.
• Maintain or restore viable populations of the species included in the �VISHCP so
that incidental take permits can be obtained for currendy listed species and non-
listed species can be coeered in case the��are listed in the future.
• Sustain ecological and evolutionar}- processes necessary to maintain the viability
of the natural communities and habitats for the species included in the MSHCP.
'I'hese three goals were used to guide the development of the MSE�CP Reserae System.
A fourth objecti��e of the ��fHSCP is to manage the system adapuvely to be rc:sponsive to
short-term and long-term environmental change. The management costs will continue in
perpetuity and will be func�ed by earnin�s from an end�wment. The LDMF will not fund
these c�sts and the;se costs are nc�t part of the anal��sis c�ntained in this report. Development
impact fees are a one-time ree=enue source paid as new de;velopment�ccurs and therefore are
ill suited to fund consistent, ongc�ing costs such as habitat management, species monitoring,
and administration. The endowment is funded b}� contributions from state and local agencies
and re��enue ass�ciated �vith landfill tipping fees and interest earnin�s on the f?ndowment
Fund balance.
COVERED SPECIES AND NATURAL COMMUNITIES
The planning team de��eloped an initial list c�f 52 species tc� consider protecdng under the
�1SHCP. Thesc: species were idenufied as either endangered or threatened b}� the VG'ildlife
Agencies, or at risk for becoming listed as threatened or endangered. Through the planning
process this list was reduced to 27 Covered Species. Species were eliminated from the final
list for reasons such as a lack of known l�cations in the Plan Area and insufficient data to
facilitate conservation planning. Table 3.1 lists the 27 C�vered Species and idenufies the
reason for their inclusion in the ��fSI iCP.
The Plan Area contains 46 natural communities. The 27 natural communities included in the
�iSHCP Reserve S}�stem are thc>se needed to provide habitat for the Covered Species. Table
3.2 lists the natural communities protected b�• the MSHCP Reserve S}�stem.
�Mun�inanci� ��
Local Development Mitigation Fee Coachella Valley Association of Governments
I DENTIFYING THE M S H C P RESERVE SYSTEM
The MSF�CP planning team collected information on each Covered Species' life history,
habitat, ecological requirements, overall range, distribution, threats, and consen�ation needs.
The team gathered similar information on the composition and distribution of natural
communities and on existing conser�ation areas, topography, watersheds, ecological
processes, roads, and current land uses. The team then had maps prepared of the natural
communities and species' habitat distribution. These maps became the basis of for
identif��ing lands with the highest biological resource value t� include in the Reserve System.
For each Covered Species for which sufficient information was available, core habitat areas
were delineated with unfragtnented habitat that contained intact ecological processes large
enough for self-sustaining populations of species. Areas needed to maintain essential
ecological processes, core habitat, biological corridors, and linkages were also identified. The
following measures of adequacy were used to dete:rmine the habitat necessar}� to preserve
Covered Species and the consen�ed natural communities and idendfy lands to be included in
the yISHCP Reserve System.
• Size of habitat patches. �or each C�vered Species, the planning team assessed
whether a consen�ation area provided core habitat. The Core I�abitat concept
was not applied to species that were considered to occur as metapopulations.
These species are the burrotvin� owl, i.e Conte's thrasher, Yuma clapper rail,
Calif�rnia black rail, riparian bird species, and southern }�ellow bat. A
conservation area was not dee;med inadeyuate because of the lack of core habitat
for these species. The concept of c�re habitat was n�t used with natural
communities.
• The number of core habitat areas protected in conservation areas for
each Covered Species. Where possible, the planning team s�ught to cc�nsen�e a
minimum of three core habitat areas for each Co��ered Specie;s. In s�me cases,
more than three core habitat areas for a C�vered Species occurred in the
conservati�n areas. In other instance:s, fewer than three core habitat areas for a
Cc�vered Species occurred in the Plan Area.
�MuniFnancial i i
Local Development Mitigation Fee Coachella Valley Association of Governments
Table 3.1: Covered Species Under the MSHCP
Plants
Mecca aster,Xylorhiza cognuta (NS)
Coachella Valley milk�etch,Astragalus lentiginosus var.couchellae (FE)
Tiiple-ribbed milki,etch, Astragalus tricarinutus (FE)
Orocopia sage, SQ[via greatae (NS)
Little San Bemardino Mountains linanthus, Linanthus maculatus(or Giliu maculuta) (NS)
InveRebrates-Insects
Coachella Valley giant sand-treader cricket, Macrobaenetes valgum
Coachella Valley Jerusalem cricket, Stenopelmutus cuhuilaensis
Fish
Desert pupfish, Cyprinodon macularius (FE/SE)
Amphibians
Arroyo toad, Bufo californiceis (FE/CSC)
Re tiles
Desen toRoise, Gopherus agussizii (FT/ST)
Flat-tailed homed lizard, Phrynosoma mcallii (CSC)
Coachella Valley fringe-toed lizarrl, Uma inornata (FT/SE)
Birds
Yuma clapperrail, Rallus lvngirostris yumanen.sis (FE/ST/SFP)
Califomia black rail, Laterullus jamaicensis (ST/SFP)
Burrowing owl, Athene cunicularia (CSC)
Southwestem willow flycatcher, Empidonux traillii extimus (SE/FE)
Cnssal thrasher, Toxostomu crissale (CSC)
Le Conte's thrasher, Toxostomcr lecontei (CSC)
Least Bell's rireo, Yireo hellii pu.+•i!!us (FE/SE)
Gray ureo, Vif•eo vicinior (CSC)
Yellow warbler, Dendroica petechiu brex�steri (CSC)
Yellow-breasted chat, /cteria virens (CSC)
Summertanager, plrunga rubra (NS)
Mamma/s
Southem yellow bat, Lasiurus egu or xanthinu.s (NS)
Coachel/a Valley raund-tailed ground squirrel, Spermophilus tereticaudus chlorus (CSC)
Palm Springs pocket mouse, Perogna�hus(ongimembris bangsi (CSC)
Peninsular bighom sheep, Ovis cunadensis nelsoni (FE/ST/SFP)
Key:
FE�Federal Endangered CSC:Species of Special Concern(a state list of species that are at risk)
FT•Federal Threatened NOS:hb Oflicial Status(USFWS,CDFG,and the Scientific Advisory Corrrrittee
SE State Endangered that assisted in preparing the MSHCPrecormiend inclusan of these specres
ST.State Threatened because of the pro6abil'rty ol their being placed on an official list.
SC:State Candidate
SFP.Sfate Fuly Hotected
Source:Coachella VaHey Associatan ol Governments,Coachella Valley Multiple Species Habitat Conserva6on
Plan/Natural CommunityConservation Plan, Table 3-1.
�MuniFinanciai ��
Local Development Mitigation Fee Coachella Valley Association of Governments
Table 3.2: Natural Communities Included in the MSHCP
Acti�e desert dunes
Stabilized and partially stabilized desert dunes
Acti�e desert sand fields
Ephemeral desert sand fields
Stabilized and partially stabilized desert sand fields
Stabilized shielded desert sand fields
Mesquite hummocks
Sonoran creosote bush scrub
Sonoran mixed woody and succulent scrub
Moja�e mixed woody scrub
Desert saltbush scrub
Desert sink scrub
Chamise chaparral
Redshank chaparral
Semi-desert chaparral
Interior li�e oak chaparral
Cismontane alkali marsh
Coastal and valley fi�shwater marsh
Southem arroyo willow riparian forest
Sonoran cottonwood-willow riparian fnrest
Mesquite bosque
Desert dry wash woodland
Desert fan palm oasis woodland
Southem sycamore-alder riparian woodland
Arrowweed scrub
Mojai,ean pinyon juniper woodland
Peninsular juniper woodland and scrub
Source:Coachella Valley Association of Governments, Coachella Valley Multiple Species Habitat
Conservation P/an/Natura/Community Conservation Plan, Tab/e 3-3.
• Representative range of environmental conditions, including
temperature, moisture, and elevation gradients, under which the species
or natural community occurs in a viable population. �c�r each (;c���ered
Species, the planning tcam assessed whether the consen�ation are:as includc:d
other conserved habitat that provide:d for the conservauc�n of the range of
environmental conditi�ns in which the species occurs in the Plan Area.
• Essential ecological processes. These could include h}�drol���ical processes
(both subsurface and surface), bl�wsand movement, erosion, deposiuon,
substrate development, soil formation, and biological processes such as
reproduction, pollination, dispersal, and migrati�n. The plannin� tc:am assessed
the conservation areas to e�-aluate whether the essenual ecological processes
�MuniFinanciai J-;
Local Development Mitigation Fee Coachella Valley Association of Governments
necessary to sustain the Covered Species and the conserved natural cc�mmunities
present were included in the consen�ation areas.
• Biological corridors and linkages. For each Co�ered Species, the planning
team assessed whether connectivity of the population in each conservation area
was maintained with populations in other conservation areas and to populations
outside the Plan Area to the maximum extent feasible.
This planning process resulted in the identification of 74G,�00 acres across 21 conservation
areas. Within the conservation areas, the :�'ISI�(:P allows a maximum of 22,G60 acres to be
developed, leaving 723,940 acres to comprise the :VISHCP Reserve System.5 The Reserve
System ensures the conservation of these species and natural communities as new
development occurs. Without new development there would be no need to establish the
Reserve System because the loss of existing habitat would not occur.
:�Iew development has both direct and cumulative impacts on the need f�r habitat
conservation. Direct impacts occur from the development of vacant and partially ��acant land
within the Plan Area because these lands contain habitat for Covered Species. Cumulative
impacts occur as a result of development over time and acrc�ss the Plan Area by reducing the
total amount of ai�ailable habitat and thus the viability of Covered Species.
5 Development that is consistent with maintaining certain conservauon objecuves is also allowed within 7,800
acres dcsignated as flu�7a1 sand cransporc areas.
�MuniFnancial �-�
CHAPTER 4: COST OF HABITAT ACQUISITION
This chapter describes the cost of the habitat acquisition pro�ram and presents the
Financing Plan for completing the program during the 50-year planning horizon. If no new
development occurred within the Plan Area then there would be no take of Co��ered Species'
habitat and no need for mitigation. Thus, new development is solely responsible for and
benefits entirelv from these costs.
AMOUNT OF HABITAT ACQUISITION
Table 4.1 presents a summary of the land acreage that will comprise the MSHCP Reserve
System described in the last chapter. Of the 1.2 million acres in the Plan Area, 723,940 acres
will be preserved as habitat. Sevent��-seven percent or 5�7,100 acres of the Reserve System
has already been set aside. Complementary Conservaaon and state and federal contributions
to VfSfiCP implementation will conserve an additional 51,840 acres from '.�;ovember 2006
forward. The remainin� amount of 11�,000 acres includes 10,$00 acres of non-Permittee
public and quasi-public land, and 7,800 fluvial sand transport areas where acquisition is not
required. Appr�ximately 7,500 acres is Pc;rmittee-owned land that will be conserved in
pc:rpetuity thou�h the VISHCP, leaving 88,900 acres as of November 2006 that must be
acquired from willing seller private landowners, or otherwise conserved. The LDMF will be
the primary funding source for this habitat acquisition program.
LDM F FINANCING PLAN
The primary objecu�e of the Lll`�1F Financing Plan is t� demonstrate that sufficie:nt funding
is a��ailable for the habitat acquisition program. The Financing Plan is based on a financial
model constructed to estimate annual revenues and costs for the Land Acquisition &
lmprovement Fund. The model was used tc> calculate the leve! of the I.D�TF needed to fully
fund the habitat acquisition prog-ram after deducting c�ther anticipated revenues and interest
earnings on the Fund balance.
[mplementatic>n of the �-1SI iC1' includes other costs such as land management, habitat
monit<>rin�, and administration that are in addition to the habitat acquisition prc�gram. As
discussed in the last chapter these other costs are not included in the calculation of the
LD�VIF bc;cause the�� are ongoing costs ill suited to funding�vith one-time fee re��enue ded to
the rate of new development. Funding in perpetuity after Year 7� for these costs would
cc�me from earnings generated by an Endowment f;und.
All i_D�iN revenue and haUitat acyuisition expenditures would be accounted for in the Land
rlcyuisition & Improvement Fund. CVCC would manage the Fund as part of its
responsibilities to implement the ti1SI�CP. The Fund would enable CVCC to compl�� with a
provision of thc Fee Mttigatton Act described in Chapter 6 that requires de��elc�pment impact
fees to be placed in a separate account. CVCC would stop collecung i,ll`-fF revenue and
would terminate the fund after 50 �-ears, the planning horizon discussed in (;hapter 2.
�MuniFinancial i S
Local Development Mitigation Fee Coachella Valley Association of Governments
Table 4.1: MSHCP Reserve System
Acres
Conservation Areas Total 746,600
Potential Development Within Conservation Areas 22,660
MSHCP Reserve System Total 723,940
Existing Conservation Lands (as of November 2006) 557.100
Land to be Conserved(as of November 2006) 166,840
Future Complementary Conservation(as of November 2006) 29,990
State and Federal Contribution To Plan Implementation(as of November 2006) 21,850
Consenration of Lands Owned By Non-permittee Public or Quasi-Public Entities� 10,800
Conserved Land Not Responsibility of Local Permittees 62,640
Remaining Lands to Be Conserved By Local Permittees 104,200
Local Permittee Responsibility
Conservation of Existing Local Permittee Lands 3 7,500
Conservation of Fluvial Sand Transport Area° 7.800
Subtotal Local Permittee Responsibility 15,300
Remaining Lands To Be Acquired By Local Permittees 88,900
' Lands set aside for conservation purposes and owned by federal,state,and local agencies and non-profit organizations.
1 Lands currentlyowned byentities such as local utilities that the MSHCP estimates will be conserved through the
regulatory process as those entities seek approva/to conduct various activities on their lands.
� Lands currentl y owned by Local Permittees that they will set aside for conservation.
° Lands that,through land use regulation,will be required to maintain their natural function as fluvial sand transport areas.
Source:Coachella Va1leyAssociation ofGovernments, Coachella Va1leyMultiple Species Habitat Conservation
Plan/Natura!Communily Conservation Pfan, Table 4-1.
Another ke}� objective of the Financing Plan is purchase of all habitat conservauon lands as
soon as financially feasible within 30 ��ears. Given the current development pressure, if land
acquisition is nc>t c�mpleted within the first 30 years, important resources may becc�me
developed, or surrounded by new development to the extent that the land ma�- become
isolated and unsuitable habitat. The onl�� approach that allows acc{uisiti�n <>ver a shorter
period than the planning horizon for new de��elopment is to use some t��e of financing
mechanism. The Endo�vme;nt Nund would provide this financing as needed during the 30-
�•ear acquisition peric�d, with funds repaid o�•er the following 20 years to match the �0-��ear
planning horizon.
Table 4.2 summarizes total revenues, expenditures, and other assumptions for the I,and
ticquisiti�n & Improvement Fund in nominal dollars based on the LDMF Financing Plan.
The Financing Plan assumes that Lc�cal Permittees will be�rin to impose the i_DMF on new
development in fiscal }'ear 2007-2008 (2008). The Land Acquisiuon tic Improvement l�und is
assumed to terminate 50 }�ears later at the end of 2057. See Table A.1 in the Appendix f�r
the cash flow detail.
�llf�niFnarxial ���
Local Development Mitigation Fee Coachella Valley Association of Governments
Table 4.2: Land Acquisition & Improvement Fund
Total Revenues & Expenditures (nominal dollars)
2008-2057
Revenues
Development Mitigation Fee Revenue $516,802,000
Endowment Loan Proceeds 67,580,000
Regional Road Project Mitigation 21,819,000
Regional Infrastructure Mitigation 48,500,000
Interest Eamings _30,929,000
Total Revenues $685,630,000
Expenditures
Land Acquisition $526,705,000
Land lmprovement 9,080,000
Administration
Land Acquisition Manager(contract) 5,963,000
Administration (program-►n�de share) 18,602,000
Endowment Loan Repayment 125,280,000
Total Expenditures 685,630,000
Ending Fund Balance $ -
Source:Appendix TableA.l;MuniFinancial
The following sections describe the reeenues and expe;nditures included in the Lll:�1N
�inancing Plan and listed in Table 4.2.
Revenues
LOCAL DEVELOPMENT MITIC3ATION FEE REVENUE
LD�iF revenue would provide the majority of funding for the habitat acquisiti�n program.
The Financing Plan generates i.11:�I� revenue by multiplying the per acre fee by the
estimated acres c�f new de��elopment. Nee revenue is projected to increase at 3.29 percent
annually to equal the estimated rate of land price inflation during the Iand acquisition period
fr�m Years 1 to 30 (see Expenditures - Land Acquisition, belc�w). The inflation rate c>f 3.29
�ercent is �nly an estimate, and the actual increase will be based �n economic indicat�rs
evaluated as implementauon proceeds.
()nce all land acquisition has been c�mpleted in Year 30 the only Financing Plan cost is for
repayment of the Endowment Fund loan. The fee is adjusted to generate revenues sufficient
to fund the I�nd�wment f{und loan repa}'ment in }'ears 31 through 50 (see Expendttures -
Endowment Loan Repayment, below).
�MuniFinancia( ��
Local Development Mitigation Fee Coachella Valley Association of Governments
Actual fee levels may vary depending on the rate of development, actual land price inflation
and loan repa}�ment obligations.
ENDL]WMENT LOAN PROCEE05
To complete habitat acquisition in the first 30 years the Land Acquisition and Improvement
Fund must borrow from the Endowment Fund. The financial model draws funds from the
Endowment Fund as needed to maintain a positive fund balance in any given year. The Land
Acquisition and Improvement Fund repays this loan with interest in Years 31 through �0
(see Expenditures-Endowment Loan Repayment, below).
REC310NAL ROAD PROJECT MITIGATION
�Ieasure A is a half-cent sales tax approved by Riverside County voters to fund
transportation projects. Thirty million dollars of �Ieasure A funds are dedicated to fully
mitigate the direct, indirect, and cumulative effects of transportation projects on the (:overed
Species and the conserved natural c�mmunities. Of this amount g21,819,000 will be
contributed to the Land Acquisition and Improvement Fund. Measure A is anticipated to
fund this contribution during the first few }'ears of the Financing Plan. 'These bond proceeds
cannot be increased for inflauon.
REGIONAL INFRASTRUCTURE MITIGATI�N
This revenue source is generated by two public agencies in connection with mitigation oF
infrastructure projects. The first agency is the Coachella Valley �Y�ater District (CVWD).
CV��'D is anticipated to acquire 5�0 acres for the tiiSHCP Reserve S��stem in the Thousand
Palms Conservation Area. The acquisition would mitigatc: habitat impacts of the Whitewater
River Flood Control Project and is estimated to cost $20,G25,000. This acquisition is
anticipated to occur as soon as pracucable upon adoption of the MSI-�CP. The cost estimate
is based on the current mid-range market value per acre for the Thousand Palms area of
�37,500 (see discussion and table under Expenditures-Land Acquisition, bel�w).
The second agency is the (:aliFornia Department of Transportation (Caltrans). (:altrans has
an �bligation to acquire 5,791 acres �f habitat to mitigate non-interchange highway projects
in the (:oachella Valle}'. For the purposes of the Ninancing Plan, Caltrans is assumed to
acyuire 1,930 acres in Financing Plan Years 5 and 10, and 1,931 acres in Ye:ar 15. �'lcyuisition
costs per acre are assumed to be the same average cost f«r all acquired acres in the year of
acquisition. The actual phasing of the funding for this obli�ation by Caltrans on an annual
basis is not material to the Financing Plan because the miugauon is based on a�;iven amount
of acreage to be acquired, not on a specific amount of revenue to be contributed.
(NTEREST EARNINGS
The Fee Mitigation Act described in Chapter 1 requires that interest earnings on
development impact fee revenues be credited to the same fund in which the fees are
deposited and expended for the same purposes. The �inancing Plan assumes an interest rate
of 5.73 percent on Fund balances, a rate similar to that earned by the State's Local Agency
Investment Fund during the relatively stable interest rate period of the 1990s.
�MuniFinancial /S
Local Development Mitigation Fee Coachella Valley Association of Governments
Expenditures
LAND ACC�IUISiTfON
The total estimated cost of the remaining land to be acquired by Local Permittees is $583.7
million in 2008 dollars. These estimates are based on an independent study that relied on
current sales and listings of comparable properties (A Market Study of Land Values, Related
to Several Areas of Prospective Acquisition, Associated with the Coachella Ualley Multiple
Species Habitat Conservation Plan, Scarcella, September 2006). The study estimated low,
mid, and high range market values per acre for each of 20 conservation areas within the Plan
Area. F.stimates were made of the percentage of land to be acquired at each market level in
each conservation area. These costs exclude transaction costs (see below). Table 4.3 on the
following page details land acquisition amounts and estimated purchase costs by
consen�ation area within the VfSHCP Reserve System.
�MuniFinancial ��
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I
Local Development Mitigation Fee Coachella Valley Association of Governments
The Financing Model uses an average cost per acre multiplied by acres acquired to estimate
total costs for each year of the Financing Plan. Average per acre costs include related
transaction costs for appraisals, escrow fees, and other costs that are esdmared to be
approximately five percent in addition to the land purchase price. The calculation of the
average cost per acre including transaction costs in 2008 dollars (the first year of the
Financing Plan) is sh�wn in Table 4.4. The Financing Plan assumes that land acquisition
costs will increase at 3.29 percent annually during the 30-year acquisition period, resulting in
the larger cost estimate tn nominal dollars shown in Table 4.2. The Financing Plan does not
increase land acquisition costs from 200G, the year the cost per acre was calculated, to Year
1, fiscal }�ear 2007-2008. Recent real estate market activity in the Coachella Valley does not
support such an increase in value. CVAG expects to update this analysis periodicall}� based
on new land appraisal studies.
Table 4.4: Average Cost Per Acre
Average Cost PerAcre($2006) $ 3,391
Transaction Costs' S.00%
Average Cost PerAcre Year 1 of Financing Plan
Including Transaction Costs ($2006) $ 3,560
' Includes costs forappraisals,escrowfees,and related transaction activities.
Source:Tab/e 4.3;Coachella ValleyAssociation of Governments, Coachella
Valley Multiple Species Habitat Conservation Plan/Natura/Community
Conservation Plan, Table 5.4a;MuniFinancial
'I'he Financing I'lan includes an estimate of the amount of land acquired on an annual basis
o��er the 30-�-ear acquisition period. The Financing Plan assumes that as much land as
possible is acquired as early as possible subject to reve:nue constraints. To supplement
LD�iF re�•enues, regional road project and infrastructure mitigation payments provide
re��enue through Year 15 c>f the Financing Plan. Endowment loan proceeds supplement
revenues in Years 26 through 30. To de��elop a financially feasible land acquisitic�n sce:nario,
the primary constraint was the capaciri� �f the Endowment to lend to the Land Acquisition
F'und during the latter years of the land acyuisition period.
The phasing assumptions mec:t the "Rough ProporucmaGty" reyuirements of the �fSE�CP
regarding the amount of habitat land conser��ed compared to the amount of de�-elc�pment
that c�ccurs.
r'lctual land acquisition costs ma}� turn out to be m�re or less than these estimates. Land
price inflation may vary from the rate assumed here. Also, costs would be lower to the
extent that land is pr�tected through methods �ther than fee simple purchase, such as
conservation easements. CVAG will conduct land market appraisals and adjust the rate of
increase in the LD:�IF discussed in the revenue section above to mirror actual cost trends
and ensure that total revenues do n�t exceed total costs w�ithin the Land Acquisiti�n I�und.
-- —...... _-------21
�MuniFnancial
Local Development Mitigation Fee Coachella Valley Association of Governments
LAND IMPR�VEMENT
I,and improvements are one-time capital costs to render the land usable for intended
conservation purposes. These costs primarily include the removal of an invasive species, the
Saharan mustard, and fencin�;. Other cc>st� include �;atr�, sis�na�;e, anc! r.ra�h rem�>��al.
Ungoing maintenance custs arr n�rt included. In the first year of the acquisiuon program,
5182,465 is allocated to land improvement. This cost is inereased by 3.29 percent annually
for inflation. Costs terminate at the end of the 30-year acquisition peric�d.
ADMINISTRATIDN
CV(;C will contract with CVAG for staff senices for the first five years of �TSHCP
implementation and may continue to do so thereafter if desired. Total administration costs
for all �VISH(.;P implementation activities are estimated to be �429,000 annually in 2008
dollars. This amount would fund about 3.3 fulI-time equivalent positions for management,
accounting, information technolo�,ry, and related overhead costs. The I.DMF Ninancing Plan
includes $37�,000 of this total amount as the share allocated to the habitat acquisition
program. This share is based on total Financing 1'lan eYpenditures as a percent of total
program-wide expenditures including the monitoring and management programs, excluding
administraaon costs.
Administration costs also include �120,OQ0 annually for a contract T.and Acquisition
ti'[anager funded solel}' by the Land Acquisition and Improvement Fund.
All administration costs are increased 3.29 percent annuall}� for inflation. Costs terminate at
the end of the 30-year acquisition period.
ENDDWMENT LOAN REPAYMEN7
As discussed above the Land Acquisition and Impr�vement Fund would borrow from the
F.ndowment Fund to complete land acquisition within 30 ��ears. The Financing Plan assumes
that interest would accrue and principal payments would be deferred until the end of the
land acquisition program in Year 30. In Year 31 repayment of the entire l�an balance and
accrued interest would begin in even installments over the following 20 years. Interest is
calculated using a six percent annual interest rate. Thus repayment wc�uld be completed 50
}�ears after the program begins. t1t that time the Land r�cquisition and Improvement Fund
could be terminated.
FINANCING ALTERNATIVES
As with an}� financing plan, the:re are si�nificant uncertainties regarding revenue assumpti�ns.
There is risk of revenues not being available in the future, e.g. investment risk associated
with endowment funcling and political risk associated with fees and property-related charges.
This sectic�n describes three financing alternatives to consider should revenues fall short of
those projected in the Financing Plan:
• Increase the I.ocal llevelopment �fiti�;ation Fee: If other revenue sources are not
available or if costs increase, the I,Dl4F could be increased to cover reti�enue
requirements.
• Form a f nance district:
�IV�niFnancial 22
Local Development Mitigation Fee Coachella Valley Association of Governments
• Benefit assessment districts allow for the imposition of annual benefit
assessments on property owners commensurate with the annual costs of an
identified special benefit to that property. Beneft assessments can only fund
facilities or services that provide a special benefit to a disunct group of property
owners that are in addition to any general benefits accruing to all propert}�
owners in a jurisdiction. An increase in property value alone does not qualify as a
special benefit. Propert}� owners must approve a benefit assessment by majorit}�
v�te. Property owners can repeal an existing benefit assessment using an
initiati��e process unless the assessment is funding repayment of debt. Benefit
assessments are often imposed as a c�ndiuon of approval for devel�pment
projects
• The :Vlell�-Roos Communiry Facilities Act of 1982 enables the formation of
Community Faeilities Distriets (CFDs) by local agencies for the purpose of
imposing special taxes on property owners. CFDs are primarily used as a way to
finance public facilities with debt financing secure;d by a lien on property within
the district, though certain ongoing public sec-vice costs may be funded as well.
CFlls impose special taxes on property owners, not special assessments. (;FD
approval requiremencs make this funding source primarily attracti��e to
development prc�jects cm undevelc�ped land.
• Pursue voter approved revenue sources such as parcel taxes: Parcel taxes are a n�e
c�f excise tax on the use of pr�pert}�. �G'idely used throughout the state, these taxes
are adopted as a special tax dedicated t� specific purpose:s. All special taxes reyuire
two-thirds vote;r approval. These taxes are also always adopted jurisdiction-wide and
not for sub-areas. Thus, the �re:atest challenge for this funding source is gaining
c�untt�wide voter approval. The greatest advantages of a parcel tax are (1) the large
and stable potent�al funding base from a countywide tax, and (2) the tlexible use of
revenues. Parcel taxes are usuallt� levied as a Elat amc�unt per parcel with variances by
major land use cate�ories. The parcel tax rate must not be correlated �i�ith assessed
value to avoid being considered a property tax subject to the constraints of
Pr�position 13. The parcel tax on a specific property need not be correlated with the
benefit received by- that propern� from the c;xpenditure of tax re��enues.
�lV�n�nancial 2:;
Local Development Mitigarion Fee Coachella Valley Association of Governments
CHAPTER 5 : COST ALLOCATIDN AND FEE
SCHEDULE
This chapter describes the allocation �f habitat acquisition program costs per acre of new
devet�pment. The cost per acre is used to generate the fee schedule to calculate the LD:�1F
for individual development projects.
N EW DEVELOPMENT ACREAGE
The cost of the habitat acquisiti�n program is allocated to all 68,500 acres of new
development on ��acant or partially vacant land within the Plan Area (see Chapter 2). All
��acant �r partially vacant land represents habitat or potential habitat for one or more
Covered Species, including vacant or partially vacant land within the urban areas. Loss of all
such lands also represents a cumulative loss c�f habitat for the Covered Species. Table 5.1
lists the (;overed Species and the conserved natural communities that may be found �n
vacant or partially vacant land in urban areas on the valley floor. When habitat conversion
takes place an��vhere thc:re is an overall loss to habitat quantity and the quality �f the
remaining occupied or potential habitat is degraded because these areas may become even
more isolated and impede species movement. Thus, all development has a direct, indirect
and/or cumulative impact on the loss of habitat for the Covered Species.
Table 5.1: Covered Species and Natural Communities Found In Urban Areas
Covered Speciea Natural Communitles
Invenebrates-Insects Active desert dunes
Coachella Valley giant sand-treader enekeG ,14acrohaenetes vp(gum Acfive desert sand fields
Coachella Valley Jeiusalem cncket, Slenope(mulus cahuilaensu Ephemeral deseR sand lields
Re tiles Sta6ilized and partially stabilized dese�t sand/ields
Flat-tailed homed lizard, Phn•nosomn mc•allri Stabilized shielded desert sand fields
Coachella Valley fnnge-toed liza�d, Unr!inornulo Mesquite hummocks
Bircls Sonoran creosote bush scrub
BuiroKing oKl, �Jhene cuniculoria Sono2n mixed Noody and succulent scrub
Cnssal thrasher, Toxoslumo crirsale DeseR saltbush scrub
Le Conte's thrasher, Toxostomu lecun�ei
Mammals
Coachella Valley round-tailed ground squirral, Spermophilus tereticnudus ch(r�rus
Palm Spnngs pocket mouse, perognnfhus fongimemhris bangsi
Source:Coachella Va/ley Mountain Conservancy.
NET LAND ACQUISITION COSTS PER ACRE
The LD1TF is based c�n the net revenue requirement for the Land Acquisition Fund. As
discussed above in Chapter 4 (Expenditures - Land Acquisition), for Years 1 throu�h 30
revenue requirements are based �n Land Acquisition I;und expenditures net of revenue from
regional road project mitigation, regional infrastructure mitigati�n, Endowment I�an
�IVluniFr�ncial 2-�
Local Development Mitigation Fee Coachella Valley Association of Governments
proceeds, and interest earnings. For Years 31 through 50 revenue requirements are based �n
repa}'ment of the Endowment Loan.
Table 5.2 presents the cost per dee•eloped acre for the land acquisition program in Year 1 of
the Financing Plan. The amount per acre of �5,730 in Year 1 is based on a net revenue
requirement of�7,905,000 and 1,370 acres estimated to be developed in Year 1. Increased at
3.29 percent annuall}�, this is the net revenue needed to fund land acquisition costs through
y�ear 30. The $5,730 cost per acre als� equals the total I..D1�fF net revenue requirement
through Year 30 shown in the Appendix, Table A-1, discounted at 3.29 percent annuall}�,
and divided by the total estimated developed acreage of 68,500 acres.
Table 5.2: Cost Per Acre (2008 dollars)
2008 2008-2037
Local Development Mitigation Fee Revenue� $ 7,850,000 $235,500,000
Total Acres z 1,370 41,100
Cost Per Acre $ 5,730 $ 5,730
' Net revenue required from development mitigation fee revenue in real 2008 dollars. The
2008-2037 revenue estimate excludes the fee revenue needed fo repay fhe Endowment loan
during the 2038-2057 period.
z Acres ofnewdevelopment.
Source:MuniFinancial
In Year 31 the fee is adjusted to match the cost of repa��ing the F:ndowment l�an. The fee is
calculated to repa� the loan based on a constant annual debt servicc thr�ugh Year �0.
FEE SCHEDLJLE
:�]ew development will pa�� the LDMF over an estimatc:d �0 }-ears of growth represenung
G8,�00 developed acres. Each newly developed acre has approximately the same
proportionate impact by causing direct, indirect, and cumulative impacts on species and
existing or potential habitat and natural communities. I�iew development also causes a need
for and benefits from the installation of public infrastructure, which also impacts habitat. As
a result, the Financing Plan funds the mitigatic�n of these impacts u�ith a fee imp�sed per
developed acre. 'The per acre cost from Table 5.2 provides the basis for the fee schedule.
The total fee for a specific project is based on its size as measured in acres. This approach
ensures a reasonable relationship betu�een the fee for a specific development prc>ject and the
impact of that project on the need for habitat protection.
The fee schedule uses the per acre c�st shown in Table 5.2 to appl}� to all nonresidential
development pr�jects.
For residential development projects, the fee schedule converts the per acre cost to a cost
per dwelling unit based on the density� of the project (d���elling units per acre). The mitigadon
�MuniFinancial 2 S
Local Development Mitigation Fee Coachella Valley Association of Governments
fee is based on average lot si•r.e for the three residential categories (0 to 8 units per acre, 8.1
to 14 units per acre, and 14 units and over per acre). To simplify administration of the
Coachella Valley I_DMF in conjunctic>n with the Western Riverside (:ounty DMF, the same
density categories and average lot size assumptions are used for this fee schedule (see
Mitigation Fee Nexus Report for the Western Riverside County Multiple Species Habitat
Conservation Plan).
Table 5.3 presents the Local llevelopment i�titigatic�n Fee schedule fc�r the MSHCP in 2008
dollars.The table includes the average lot sixe assumption for cach of the residential land use
categories. The I.11I�1F would onlj� apply to new development on vacant or partially vacant
land. The fee would not apply to development projects on land that is already developed,
such as expansion and renovation projects.
Table 5.3: Fee Schedule (2008 dollars)
Cost Per Average
Acre Lot Size Fee�
Residential
0-8 Units PerAcre $ 5,730 0.22 $ 1,284
8.1 - 14 Units Per Acre 5,730 0.09 533
14.1+ Units Per Acre 5,730 0.04 235
Nonresidential
Commercial $ 5,730 NA $ 5,730
Industrial 5,730 NA 5,730
Per dwelling unit for residential and per acre for nonresidential land uses.
Source: Table 5.2;MuniFinancial
Revenue requirements for the LD�41� ma}'�'ar}� substantially� depending �n economic factors
discussed in Chapter 4 that affect the Financing Plan. These factors include, for example,
land acyuisition price inflation, interest rates, and the rate of new develc�pment. In particular,
the �inancing I'lan shown in r�ppendix Table A.1 indicates a substantial change in revenue
requirements betw�een the land acyuisition peric>d (assumed to be Years 1 thrc�ugh 30) and
the repa��ment of the F.ndowment loan (assumed tc> be Years 31 throu�h 50). A prior draft
of this rep<>rt �farch 2004) sh�wed a much less significant chan�;e between these t�vo
periods. The difference is primarily a functi�n of the change in estimated land acquisition
costs since that prior report was prepared.
The proposed fee schedule represents a reasonable approach For allocating mitigation costs
as e�•enly as practicable across new developed acreage. The Financing Plan is constrained b}�
(1) the polic}� objecuves to fund land acquisition as so�n as feasible within 30 }�ears while
allowing costs tc� be spread ���er a 50-year period, and (2) the limited financing opdons
a��ailable. Furthermore, as indicated above regarding the difference between the pri�r and
current drafts, there are si�,mificant uncertainties regarding Financing 1'lan assumptions.
Depending �n the actual value of these assumptions as the Fainancing Plan is implemented,
�MuniFinancia! 2G
Local Development Mitigation Fee Coachella Valley Association of Governments
the allocation of costs to the repayment period (Years 31 to 50) could vary substantially. In
the future the CVCC may be able to access financing mechanisms in addition to the
Fndowment to more evenly spread costs across all new developed acres through Year 50.
Given these c�nsiderations, the fee schedule presented here represents a reasonable
approach to the fair allocation of c�sts across all new development.
�MuniFnancial 27
CHAPTER 6 : MIT/GAT/�N FEEACT FINDINGS
Development impact fees are one-time fees, typically paid when a building or grading permit
is issued, imposed on development projects b}� local agencies responsible for regulating land
use (cities and counties). Ta guide the widespread imp�sition of impact fees, the State
Legislature adopted the Mitigation Fee Act (the Act) with Assembly Bill 1600 in 1987 and
subsequent amendments. The Act, contained in California Government Code Sections
66000 through 66025, establishes requirements on local agencies for the imposition and
administration of impact fe;e programs. The Act requires local agencies to document five
findings when adopting an impact fee.
The five statutory findings required for adoption of the Local Development Mitigation Fee
(I,D�IN� to fund habitat acquisition and related costs unde:r the MSI�CP are summarized in
this chapter and supported in detail by the report that follows. All statutory references are to
the Act.
PURPOSE OF FEE
For the first finding the agenc}�must:
Idenufy the purpose �f the fee. (§66001(a)(1))
The purpose of the LD�VIF is to provide a funding source from new development for the
acyuisition of habitat and related costs to mitigate development impacts and to carry forward
the purposes and objectives af the VISHCP. The LD:VIF advances a legitimate public interest
by funding habitat conservation as defined within the �'ISI I(�P.
USE OF FEE REVENUES
For the second finding the agenc}' must:
Identif}� the use to which the fee is to be put. If the use is financing public
facilities, the facilities shall be identified. That identification ma}�, but need
not, be made by reference tv a capital improvement j�lan as specified in
Section 6�403 or 66002, may be made in applicable general �r specific plan
requirements, �r ma}� be made in �ther public documents that identify the
public facilities for which the fee is charged. (§66001(a)(2))
Fees covered by the requirements �f the Act are th�se used to defray all or a portion c�f the
cost of public faciGties related to new development. The Act defines public facilities as
including "public improvements, public services, and community amenities." (§66000(d)).
LDMF revenue will be used to pro��ide community amenities by fundin� acquisiuon of land
for the conservation c�f habitat, and will facilitate public and private project compliance with
federal and state endangered species laws.
Lll:�4F revenue will pro��ide most of the funding necessary to acquire an esdmated 88,900
acres of habitat and related costs. L�nder the :�1SHCP, this habitat acquisition program
provides a comprehensive approach t� miti�;ate the loss c>f species and habitat caused by all
�MuniFinancial �s
Local Development Mitigation Fee Coachella Valley Association of Governments
development in the C�achella Valley or adjacent areas. All habitat acquired with funding
from the LD1�-fF will be located within the Conservation Areas. The MSHCP represents the
public document referenced in the statute above that adequately idendfies the amount, type,
and general location of land to be acquired vvith LDMF funding.
The agencies responsible for implementing the LDMF (CVCC) will restrict the use of fee
revenues to one-time costs associated with the habitat acquisition program. These costs
include:
• Land acquisition and related costs such as appraisals and tide insurance;
• I.and improvements such as fencing to protect habitat from human impacts;
• Administrative costs associated with management of the habitat acquisition
program; and
• F'inancing costs to enable the cost-effective purchase of large contiguous areas of
habitat required by the �ZS�{CP prior t� the receipt of LDMF revenue from new
development.
I�abitat acquisition costs to be funded by the LllMF are describcd in detail in Chapter 4 of
this report, Cost of Habitat Acquisition.
BENEFIT RELATIDNSHIP
For the third finding the a�enc}' must:
lletermine ho�v there is a reasonable relationship between the fee's use and
the type of development project on which the fee is imposed. (�66001(a)(3))
All new development within the Coachella Valle}� will direcd}' or indirectly benefit from the
LD�4F b}� funding a comprehensive approach to habitat mitigation. The 88,900 acres to be
acquired in part with fee re��enues are one component of the 723,940-acre �1SHCP Kesen�e
S}�stem. The �iSf iCP Reserve System is the preferred alternauve represenung the area
necessary to protect the C�vered Species and the conserved natural communities identified
in the I�tSHCP. F?stablishment �f the MSHCP Reserve System �ti�ill mitigate the impacts on
C�vered Species and conserved natural communities of all new development and associated
public infrastructure projects within the Cc>achella Valle}' for the term of the Permit. I:ach
ri'pc; c�f projeet leads to the eliminati�n of habitat. Thus, there is a reasc>nable relationship
between the use of LD;VIN revenue and a11 t}pes of new residential and nonresidential
development throughout the Coachella VaUe�� that will pa�� the fee.
The use �f LD�iF rerenue to benefit new de�•elopment is described in detail in Chapter 4 of
this reporc, Cost of Habitat Acquisition.
BCJRDEN RELATiONSHIP
�or the fourth finding the agcnc}� must:
�MuniFriar�cial 29
Local Development Mitigation Fee Coachella Valley Associatzon of Governments
Determine how there is a reasonable relati�nship between the need for the
public facility and the type of development project on which the fee is
imposed. (�66001(a)(4))
All vacant lands in the Coachella Valley, including vacant lands or partially vacant lands in
urban areas, represent currern �r potential habitat for Covered Species and the conserved
natural communities identified in the MSI i(:P. r1ll new development projects on vacant or
partially vacant lands regardle;ss of location will have direct and cumulative impacts on
species and existing or p�tential habitat and natural communities. :�Iew development also
causes a need for and benefits from the installati�n of public infrastructure. Without new
development no further habitat conservation to mitigate for development impacts would be
needed in the Plan Area. Therefore, there is a reasonable relationship between the need for
habitat conservation and all t�rpes of residential and nonresidential development throughout
the Coachetla Vallet� that will pay the fee.
The need for habitat conservation was determined through the MS��(.;P planning process
using seientifie standards. The MSHCP Reserve System includes land necessary to represent
a range of native ecos}'stem types, to maintain or restore viable populations of species, and
to sustain ccological and evolutionary process necessary for maintaining the viability of
habitats. Based �n these standards the Reserve System only includes that amount of habitat
conservation necessar��to mitigate new dc;velopment impacts.
Habitat needs are described in more detail in Chapter 3,Need for Habitat Conservation.
PROPORTIDNALITY
For the fifth finding the agency must:
Determine h��v there is a reasonable relationship between the amount of the
fee and the c�st of the public facilit}� or portion of the public facility
attributable to the devel�pmc;nt on which the fee is imposed. (§66001(b))
:�Iew development will pay the LD�1F over an estimated 50 ��ears of growth representing
68,�00 developed acres. C;ach new�15� dereluped acre has approximately the same
proportionate impact bt� causing the direct, indirect, or cumulative, loss of an acre of habitat
fc�r Covered Species and the c�nser�ed natural communities. As a result habitat acquisition
program costs are spread as evenl}� as practicable across all developed acres. The LD��fF is
calculated on a per acre basis and the total fee for a specific project is based on its size as
measured in acres. Thus there is a reasonable relationship betvveen the fee for a spe;cific
development project and the direct, indirect, or cumulauve impact �f that pr�ject on the
need for habitat pr�tection.
The fee schedule uses the per acre cost of the pro�ram to apply to nonresidential
devel�pment projects. For residential de�-elopment projects, the fee schedule c�ncerts the
per acre cost to a cost per dwelling unit based on the densit�� oF the project (dwelling units
per acre).
See Chapter 2, Plan Area Land Use, for a description of h�w new development is
determined. See (:hapter 5, Cost Allocation and Fee Schedule, for a presentatic�n �f the
mitigation fee schedule.
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Local Development Mitigation Fee Coachella Valley Association of Governments
C HAPTER 7 : I M PLEM ENTATI O N
This chapter identifies responsibilities that CVCC and i.ocal Permittees should complete
�vhen implementing the LllMF program.
ADDPTION OF LDM F BY LOCAL PERMITTEES
Each Local Permittee must adopt an ordinance or amend an existing ordinance providing
the authoriry to adopt the Local llevelopment �lidgauon Nee, and a fee resoluuon staung
the amount of the fee. The fee orciinance shall become effective 60 days after adoption.
However, fees shall not be collected until the MSI�CP Take Permit is issued or the 60-day
period has been met, whichever date is later. The ordinance should include provisions for an
automatic inflation adjustment to the fee. CV(;C could assist in this process by preparing a
model ordinance and resolution for each agenc}'to review.
ADOPTION OF ADMINISTRATIVE GUIDELINES
CVCC should work with I.ocal Permittees to develop administrative guidelines for the
LDMF program. These guidelines would address, for example:
• A definiuon for"vacant" land that if devel�ped would be subject to the fee;
• f1 method f�r appl��ing the fee to de��elopment of partially�•acant parcels;
• Definitions of land use categories; and
• Transfer�f fee revenues to the Land Acquisition and Impro��ement Fund.
PROGRAMMING REVENtJES AND PROJECTS
CVCC should program fee re��enues to its acquisition program and related expenditures.
This ensures documentation of a reasonable relationship between new devc;l�pment and the
use of miti�ation fee revenues.
CVCC ma}� alter the planned acquisition or related improvement costs from those shown in
this report. However, all e�penditures must condnue to fund expansion of the inventc>r}� of
land consen�ed for habitat under the�,Tuidelines of the �'VTSHCP or pay for the other costs set
forth above.
�or a fi�e-year planning period, the agency should allocate all existing fund balances and
projected fee revenue to specific acquisitions or related improvements. The agency can hc�ld
funds in an account for longer than five �-ears if necessary to collect sufficient funds to
complete the acquisition.
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Local Development Mitigation Fee Coachella Valley Association of Governments
ANNUAL INFLATION ADJUSTMENT
c.vcc should identify an appropriate inflation adjustment and recalculate the fee annuall}�
for each I.ocal Permittee to adopt. Given that the majority of costs are associated with land
prices, the annual infladon adjustment could be calcuIated either by:
• Using actual prices per acre for recently purchased habitat; or
• Providing for an annual (:PI adjustment based upon the Consumer Price Index
for "All Urban Consumers" in the I.os Angeles-Anaheim-Riverside Area,
measured as of the month of December in fiscal ��ear immediately prior t� the
f scal year that the revised fee will take affect.
Regardless of the calculated annual inflation adjustment, CVCC should revise the fee
accordingl}' �f it appears that total program revenues and costs will not be in balance when
the I,and Acquisition and Improvement Fund is terminated. The MSHCP states that the
CVCC will update the :�lexus Study at least every five years, and m�re often if deemed
necessary, to ensure that the I,ocal Development �iitigation Fee is adequate over the life of
the acquisition program to fund the necessary land acquisition and land improvement.
REPORTING REQUIREMENTS
c_vc:c should assist the Local Permittees in complying with the annual and five-}�ear
reporting requirements of the Mittgation Fee Act. In additic�n to reportin�; on revenue and
expenditure activity, the agency must identift� when the other revenues in addition t� the
T.11MF are anticipated to be available to fund the habitat acquisition program.
�MuniFnancial -;2
APPENDIX: CASH FLOW ANALYSIS
Table A.1 presents the cash flow analysis for the I,and Acquisition and Improvement Fund.
The i,DNfF was calculated to result in a zero ending fund balance at the end of 50 years.
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CITY OF PALM DESERT
LEGAL NOTICE
NOTICE IS HEREBY GIVEN that a public hearing will be held before the Palm Desert City Council to
consider adopting an Ordinance for the local development mitigation fee schedule applicable to new
development within the City of Palm Desert. The fees are detailed within the ordinance and are
intended to preserve the ecosystems of the City, Coachella Valley and surrounding mountains located
in central Riverside County. Adoption and implementation of the Ordinance will help to enable the
City to achieve the conservation goals set forth in the Coachella Valley Multiple Species Habitat
Conservation Plan/Natural Community Conservation Plan ("MSHCP"), adopted by the City Council on
October 11, 2007, to implement the associated Implementing Agreement executed by the City
Council on October 11, 2007, and to preserve the ability of affected property owners to make
reasonable use of their land consistent with the requirements of applicable laws, which could include
the National Environmental Policy Act ("NEPA"), the California Environmental Quality Act ("CEQA"),
the Federal Endangered Species Act ("FESA"), the California Endangered Species Act ("CESA") and
the California Natural Community Conservation Planning Act ("NCCP Act").
SAID public hearing will be held on January, 24 2008, at 4:00 p.m. in the Council Chamber at the
Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California, at which time and place
all interested persons are invited to attend and be heard. Written comments concerning all items
covered by this public hearing notice shall be accepted up to the date of the hearing. Information
concerning the proposed Ordinance is available for review in the Department of Community
Development at the above address between the hours of 8:00 a.m. and 5:00 p.m. Monday through
Friday. CVMSHCP/NCCP documents are also available for review at CVAG offices, 73-710 Fred
Waring Drive, Suite 200, Palm Desert, CA 92260, all Coachella Valley public libraries, and online at
http://www.cvmshcp.org. If you challenge the proposed actions in court, you may be limited to raising
only those issues you or someone else raised at the public hearing described in this notice, or in written
correspondence delivered to the City Council at, or prior to, the public hearing.
PUBLISH: Desert Sun RACHELLE D. KLASSEN, City Clerk
January 11, 2008 City of Palm Desert, California