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HomeMy WebLinkAboutRes 2014-101 - CVMSHCP - Mitigation Fee Schedule CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: REDUCTION OF THE COACHELLA VALLEY MULTIPLE SPECIES HABITAT CONSERVATION PLAN MITIGATION FEES DUE TO THE ADDITION OF THE CITY OF DESERT HOT SPRINGS AS A PERMITTEE SUBMITTED BY: Tony Bagato, Principal Planner DATE: December 11, 2014 CONTENTS: Resolution 2014- 101 , Multiple Species Mitigation Fee Reduction Recommendation By Minute Motion, waive further reading and adopt Resolution 2014- lol Executive Summary Approval of staff's recommendation will establish a new Coachella Valley Multiple Species Habitat Conservation Plan (CVMSHCP) fee that is 8% lower than the current fee due to the addition of the City of Desert Hot Springs as a Permittee under the plan. The CVMSHCP fee is a local development mitigation fee that is collected by the City of Palm Desert as a Permit Agency under the Plan. When the fees are paid, the City is allowed to retain 1% for administrative costs. The remaining fee payment is collected by the Coachella Valley Association of Governments (CVAG)for implementation of the CVMSHCP. Discussion On March 13, 2014, the City of Desert Hot Springs approved joining the CVMSHCP through a Major Amendment. The Major Amendment will not increase the overall cost of the CVMSHCP but will increase the amount of development subject to the Local Development Mitigation Fee (LDMF). This increase in the amount of development due to the addition of Desert Hot Springs is projected to be 8% of the future development subject to the fee. Consequently, upon approval of the Major Amendment by United States Fish and Wildlife Service and the California Department of Fish and Wildlife, the fee can be reduced 8% for all Permittees. The cities and County of Riverside will need to adopt a new fee schedule to implement the reduction. The LDMF imposed on new development projects is a primary source of funding for the implementation of 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 Resolution No. 2014-101 Staff Report CVMSHCP Fee Reduction Page 2 of 3 December 11, 2014 the adoption by local agencies in the Coachella Valley of the LDMF is provided in the Local Development Mitigation Fee Nexus Study, dated May 16, 2011, and prepared by Willdan Financial Services for the Coachella Valley Conservation Commission (CVCC). The Major Amendment was in progress when the Nexus Study was performed and anticipated the inclusion of the entire City of Desert Hot Springs. The Nexus Study calculated the LD.MF based on both the situation in May 2011 when Desert Hot Springs was not entirely irt the MSHCP, and the anticipated completion of the Major Amendment with the City entirely within the MSHCP. The Nexus Study is available online at: http://www.cvmshcp.orq/Fees/CVCC%202011%20Nexus%20Study%20FINAL%20051611. � The LDMF is necessary for completion of the Major Amendment to the CVMSHCP Permit because the Wildlife Agencies require that the Local Permittees identify sufficient funding for implementation of the plan. 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 types of residential and nonresidential development throughout. The proposed LDMF would be $5,308 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 $1,189. This is an 8% reduction of the fee in effect as of July 1, 2014. The fee schedule is as follows: Residential 0 - 8 Units Density Per Acre $1,189 per unit 8.1 - 14 Units Density Per Acre $ 495 per unit 14.1+ Units Density Per Acre $ 219 per unit Nonresidential Commercial $ 5,308 per acre Industrial $ 5,308 per acre The proposed fee schedule presented here represents a reasonable approach to the fair allocation of costs across all new development. The fee ordinance provides for an annual Consumer Price Index (CPI) adjustment based upon the CPI 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 CVCC will update the Nexus Study at least every five (5) years, and more often if deemed necessary, to ensure that the Resolution No. 2014-101 Staff Report CVMSHCP Fee Reduction Page 3 of 3 December 11, 2014 Local Development Mitigation Fee is adequate over the life of the Permit to fund the implementation of the MSHCP. The projected revenue from the Local Development Mitigation Fee is anticipated to account for 76% of the overall cost of the MSHCP to the Local Permittees. Other 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. To date, the largest single source of funding has been approximately $19 million from CVAG. Fiscal Impact The CVMSHCP fee is a local development mitigation fee that is collected by the City of Palm Desert as a Permit Agency under the Plan. When the fees are paid, the City is allowed to retain 1% for administrative costs. The remaining fee payment is collected by CVAG for implementation of the CVMSHCP. The fee does not impact the City's General Fund; therefore, there is no fiscal impact to the City of Palm Desert. Submitted By: CITY COiJNCILAC�ON �� APPROVF,D � DF,NiF.D lt �IVED�_ OTHER Tony Bagat , Princip Planner MEETING D TE ' "� � ' 1 AYES: � � " h ��" NOCS: Department Head: ABSENT: AI3STAIN: n� � y� VERIFIED BY: ile with City rk's Office Lauri Aylaian, Director of Community D Appr I: Paul S. Gibson, Finance Director �•l,f� ,-/�tr�G John . Wohlmuth, City Manager RESOLUTION NO. 2014 lot A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, 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, maintained and perpetually preserved to prevent future endangerment of the plant and animal species that are dependent upon them; and WHEREAS, adoption and implementation of Ordinance No. 1226 (the "Ordinance") and this Resolution will help to enable the City to achieve the habitat 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 AcY'); and WHEREAS, the purpose and intent of the Ordinance and this Resolution is for the protection of vegetation communities and natural areas within the City, Coachella Valley 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; and WHEREAS, as a Member Agency of Coachella Valley Conservation Commission ("CVCC"), the City participated in the preparation of a new "Local Development Mitigation Fee Nexus Report," dated May 16, 2011 ("Nexus Report") prepared pursuant to California Government Code, Section 66000 et seq., the Mitigation Fee Act; and RESOLUTION N0.2014- lol WHEREAS, the City has previously reviewed the new Nexus Report, and found 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 and preserving these natural ecosystems and covered species, the conservation goals of the MSHCP will not be met; and WHEREAS, the Coachella Valley Conservation Commission (the "CVCC") is currently processing a Major Amendment to the MSHCP which will, among other things, bring the City of Desert Hot Springs into the MSHCP; and WHEREAS, pursuant to the Nexus Study once the City of Desert Hot Springs is added to the MSHCP the Fee should be reduced by eight percent; and WHEREAS, the purpose of this Resolution is to implement the reduced Fee as described in the Nexus Study once the Major Amendment is adopted; 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, including the costs of preservation, caused by new development; and WHEREAS, pursuant to the Mitigation Fee Act, the City 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 City 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 NOW, THEREFORE, THE CITY COUNCIL OF THE CIN OF PALM DESERT, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1. Repealed. Resolution 2011-73 is hereby repealed on the Effective Date as defined herein and all prior Resolutions adopting the Local Development Mitigation Fee are hereby repealed to the extent that they are inconsistent with the provisions of this Resolution. Section 2. 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 3. Definitions. The terms of this Resolution shall have the same meaning ascribed to them in Section 4 of the Ordinance. Section 4. Fee Schedule. There is hereby adopted the following fee schedule RESOLUTION N0.2014- 101 for the Local Development Mitigation Fee: (1) Residential, density less than 8.0 dwelling units per acre - $1,189 per dwelling unit (2) Residential, density between 8.1 and 14.0 dwelling units per acre - $495 per dwelling unit (3) Residential, density greater than 14.1 dwelling units per acre - $219 per dwelling unit (4) Commercial - $5,308 per acre (5) Industrial - $5,308 per acre Section 5. 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 6. 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 entity 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. If the fees collected for the conservation of the land, including the monitoring and management thereof, are later adjudged by a final unappealable judgment of a court of competent jurisdiction to be unconstitutional or invalid, the prior Local Development Mitigation Fee adopted under Resolution 2011-73 shall be revived and shall continue for the life of the MSHCP, unless earlier amended. Section 7. Annual Increase. In the event that this Effective Date of this Resolution is after June 30, 2015, the Fees set forth in Section 4, above, shall be adjusted by the percentage of the automatic annual fee adjustment authorized under Section 10 of the Ordinance. Section 8. Effective Date. This Resolution shall take effect 10 days after final action on the Major Amendment of the MSHCP by both the United States Fish and Wildlife Service and the California Department of Fish and Wildlife. RESOLUTION N0.2014- lol PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 11�h day of December, 2014, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: VAN G. TANNER, MAYOR ATTEST: RACHELLE KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA