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AGENDA BILL Agenda Item No. 6(B)(3) Date: September 22, 2014 To: El Cerrito City Council From: Maria Sanders, Environmental Analyst Melanie Mintz, Interim Community Development Director Subject: Interim Adoption of San Pablo Avenue Specific Plan Fees as an Urgency Measure ACTION REQUESTED Conduct a public hearing and upon conclusion adopt an urgency resolution enacting the San Pablo Avenue Specific Plan Planning Fees on an interim basis for a period not to exceed 30 days. BACKGROUND The proposed San Pablo Avenue Specific Plan (SPASP) and Final Environmental Impact Report (EIR) creates the regulatory framework for residential and non-residential development in the San Pablo Avenue Specific Plan Area until 2040 or until the time in which the Plan Area reaches the projected build out of approximately 1,706 residential units1 and 243,112 square feet of commercial space. In a related Agenda Bill considered this evening, staff has recommended the adoption of planning fees so that the City can provide the services needed to adequately process development project applications in the Plan Area. These fees include additions to the current planning fee schedule and addition of a Specific Plan Maintenance Fee. These fees are necessary to make the required findings and determinations outlined in the San Pablo Avenue Specific Plan and to ensure that development applicants pay their fair share of costs to make these determinations. In accordance with Government Code Sections 66017, a public hearing was noticed and held prior to adoption of these fees. The anticipated costs of processing applications for development projects in the Specific Plan Area and the method of calculating the proposed Maintenance Fee are explained in the Agenda Bill and Resolution adopting the fees. 1 Approximately 1,540 units to be located within El Cerrito City limits and 170 units located in Richmond. ---PAGE BREAK--- Agenda Item No. 6(B)(3) Page 2 ANALYSIS If tonight’s related City Council Resolution is approved, the proposed planning fees needed to implement the San Pablo Avenue Specific Plan (SPASP) will not be effective until November 24, 2014, in accordance with Government Code Section 66017(a) which institutes a 60-day waiting period before development fees can become effective. However, per California Government Code Section 66017(b), the City has the authority to adopt an urgency measure approving fee changes on an interim basis not exceeding 30 days to protect the health, welfare, and safety of the public. Proper notice and a public hearing are required prior to adopting the urgency measure. Potential applicants have informed the City that they would like to submit applications for projects in the Specific Plan Area as soon as possible, which is before the fees would normally go into effect. Without the new fees effective during the interim period, staff is concerned that the City’s ability to process those applications and fund implementation and administration of the Specific Plan would be compromised. During this interim period, the City would have the choice to not accept applications, or to use the General Fund to subsidize the cost of these applications. Neither of the options are acceptable. The California Permit Streamlining act stipulates that if a local agency fails to approve or disapprove the permit within 30 days, the permit is subject to being "deemed approved" per Government Code Section 65956(b). A deemed-approved permit confers the same privileges and entitlements as a regularly issued permit. This option would seriously jeopardize the public health and safety by not providing the proper level of review. Thus, the most likely option is for the General Fund to subsidize the cost of these applications. This last option would mean that development applicants would avoid the responsibility to pay their fair share of costs necessary to bring their projects through the entitlement process. This shifting of costs to the General Fund would frustrate the intent of the City’s Strategic Plan objective to balance revenue with the cost of new services. This is compounded by the fact that the General Fund is currently fully burdened. For these reasons, staff recommends adopting an urgency resolution approving fee changes on an interim basis, effective September 23, 2014 and not to exceed 30 days. Per California Government Code Section 66017(b), the City has the authority to adopt an urgency measure approving fee changes on an interim basis not exceeding 30 days to protect the health, welfare, and safety of the public. Proper notice and a public hearing are required prior to adopting the urgency measure and have been given. Prior to the end of the initial 30-day interim adoption period, the City Council may extend the interim fees for an additional 30 days, as provided for in Section 66017(b). The two 30-day periods will cover the period until the fees would normally go into effect. STRATEGIC PLAN CONSIDERATIONS The proposed fees support the following Strategic Plan Goals: ---PAGE BREAK--- Agenda Item No. 6(B)(3) Page 3 • Goal B, “Achieve long-term financial sustainability,” contains the objective to “ensure that revenue meets the cost of providing the services identified in the Strategic Plan.” • Goal C, “Deepen a sense of place and community identity,” contains the objective to “re-imagine underdeveloped and underutilized properties through advanced planning efforts that encourage investment and/or new development.” By adopting this urgency measure, the City Council can ensure that development applications filed prior to the 60-day effective date will pay their fair share of costs to process planning applications and not shift the burden of bearing these costs onto the General Fund. CEQA CONSIDERATIONS Approval of fees does not constitute a “project” and is, therefore, exempt from the California Environmental Quality Act (CEQA) according to Section 15601(b)(3) of the CEQA Guidelines. Additionally, pursuant to Section 15273 of the State CEQA Guidelines the establishment of fees for the purpose of meeting operating expenses is exempt. FINANCIAL CONSIDERATIONS Current El Cerrito fees do not adequately cover the types of administrative or planning activities called for in the San Pablo Avenue Specific Plan. The new fees are needed to make appropriate findings and determinations in the planning process in order to protect the public health, safety and welfare of the community. Without these fees, such costs would be borne by the General Fund, which is currently fully burdened. LEGAL CONSIDERATIONS Per California Government Code §66017(b), the City has the authority to adopt an urgency measure approving fee changes on an interim basis not exceeding 30 days to protect the health, welfare, and safety of the public. After notice and a public hearing, the City may extend the interim authority for an additional 30 days. ---PAGE BREAK--- Reviewed by: -4fl}fL/- Scott Hanin, City Manager Attachments: 1. Resolution 2. Exhibit A: Interim San Pablo Avenue Specific Plan Area Planning Fees Page 4 Agenda Item No. 6(8)(3) ---PAGE BREAK--- Agenda Item No. 6(B)(3) Attachment 1 RESOLUTION 2014–XX EMERGENCY RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO ESTABLISHING INTERIM PLANNING FEES RELATED TO IMPLEMENTATION OF THE SAN PABLO AVENUE SPECIFIC PLAN WHEREAS, on September 22, 2014 the City Council adopted the San Pablo Avenue Specific Plan (SPASP) which is predicated on the goals of the El Cerrito Strategic Plan; and WHEREAS, this same day, the City Council adopted new development fees for projects in the Specific Plan Area because the current planning fees are insufficient to address the new administrative procedures and advanced planning needs of the SPASP. The anticipated costs of processing applications for development projects in the Specific Plan Area and of implementing and maintaining the SPASP are summarized and the method of calculating the Specific Plan Maintenance Fee is explained in Resolution 2014-XX, which adopted the SPASP Planning Fees; and WHEREAS, these new development fees are necessary to make the required findings and determinations outlined in the San Pablo Avenue Specific Plan in order to protect the public health, safety, and welfare of the community; and WHEREAS, a public hearing was noticed and held prior to adoption of these fees in accordance with Government Code Sections 6062a, 66016, 66017 and 66018; and WHEREAS, in accordance with Government Code Section 66017(a) which institutes a 60-day waiting period before development fees can become effective, the new SPASP planning fees will not be effective until November 24, 2014; and WHEREAS, should a development application be made before the effective date of November 24, 2014, the entity or person filing the development application would avoid the responsibility to pay their fair share of costs necessary to process their applications and to administer and implement the SPASP. Administration and implementation of the SPASP benefits projects within the Specific Plan Area by ensuring that necessary studies have been completed and the SPASP remains up-to-date. Approval of projects within the Specific Plan Area requires the City to make the appropriate findings and determinations required by the SPASP. Regular updating of the SPASP and completion of required studies is necessary to make those findings; and WHEREAS, failure of applicants to pay their fair share of the costs of processing their applications and to administer and implement the SPASP would shift these costs to the General Fund and frustrate the intent of the El Cerrito Strategic Plan to balance revenue with costs of new services; and WHEREAS, pursuant to the authority granted under Government Code Section 66017(b), a local agency may adopt an urgency measure approving fee changes on an interim basis not to exceed 30 days; and ---PAGE BREAK--- Agenda Item No. 6(B)(3) Attachment 1 WHEREAS, a public hearing has been noticed and held in accordance with Government Code Section 66017. NOW THEREFORE, BE IT RESOLVED that the City Council of the City of El Cerrito hereby adopts as an urgency measure the San Pablo Avenue Specific Plan Area Planning Fees (as shown in Exhibit A) on an interim basis for a period not to exceed 30 days. The San Pablo Avenue Specific Plan Maintenance Fee shall be applied to the types of projects, at the times, and in the amounts listed in Exhibit A. BE IT FURTHER RESOLVED that the facts constituting the urgency justifying the adoption of the San Pablo Avenue Specific Plan Area Planning Fees on an interim basis are the following: the fees imposed by this resolution recover the costs of processing development applications within the SPASP Area and of administering and implementing the SPASP. The SPASP includes new procedures for approving development with the SPASP Area for which the City does not have established fees. It also requires additional studies and regular updating to provide an appropriate regulatory framework for development projects. Potential applicants for development projects within the Specific Plan Area have informed the City of their intent to submit applications shortly after the SPASP is in effect and before the SPASP Planning Fees will be effective. Without authority to impose appropriate fees for applications for development within the Specific Plan Area, the City would have to pay the costs of processing those applications and of administering and implementing the SPASP from the General Fund. Use of the General Fund to cover those costs would constrain the City’s ability to fund other programs and services that protect the general health, safety, and welfare and would frustrate the policies expressed in the City’s Strategic Plan to balance revenue with the costs of new services. BE IT FURTHER RESOLVED that this urgency measure will become effective on September 23, 2014 and expire on close of business on October 22, 2014. I CERTIFY that at the regular meeting on September 22, 2014 the El Cerrito City Council passed this resolution by the following vote: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on September 22, 2014. Cheryl Morse, City Clerk APPROVED: Janet Abelson, Mayor ---PAGE BREAK--- Exhibit A: SAN PABLO AVENUE SPECIFIC PLAN AREA 2014-2015 PLANNING FEES INTERIM EFFECTIVE DATE: SEPTEMBER 23,2014 EFFECTIVE DATE: NOVEMBER 24, 2014 This is the planning fee schedule for development projects in the San Pablo Avenue Specific Plan Area and therefore regulated by the San Pablo Avenue Specific Plan (SPASP) Form Based Code. If not noted below, all other relevant planning fees as listed in the City’s Planning Fee Schedule shall also apply, including any applicable Development Permits. Fees listed below are generally standardized to cover applications for all projects. Special Fees for Projects of Greater Complexity: Some projects may be determined by the Community Development Director to be more complex and consuming of staff time. The Community Development Director is authorized to require a deposit for estimated staff and consultant costs at the time of the application. Where a standard fee has been paid, the Community Development Director is authorized to require additional deposits to cover costs of extraordinary staff effort resulting from unforeseen complexities or time-consuming delays and extra meetings. Staff time will be calculated on an hourly basis, including full direct and indirect costs, as documented by the City of El Cerrito Citywide User Fee Study, 2005. Item/ Description SPA Specific Plan Fees Amount Design Review Tier 1 Residential and Non-Residential Projects $1,201 Tier 2 and Tier 3 Residential and Non-Residential Projects 1. Up to 2,500 sqft $2,823 2. 2,501 - 10,000 sqft $3,842 1. 10,001 – 40,000 sqft $4,898 2. 40,001 – 100,000 sqft $6,171 3. 100,001+ sqft $7,776 base fee plus $191 per hour of staff time in excess of that covered by the base fee Tier 4 Residential and Non-Residential Projects 1. Up to 10,000 sqft $7,578 2. 10,001 – 40,000 sqft $9,659 3. 40,001 – 100,000 sqft $11,796 4. 100,001 + sqft $14,694 base fee plus $191 per hour of staff time in excess of that covered by the base fee Use Permits (see FBC Table 02 in the SPASP Form Based Code for required use permits) Use Permits (All Tiers) 1. Administrative Use Permit $905 2. Use Permit (up to 2,500 sqft) $3020 ---PAGE BREAK--- Exhibit A: SAN PABLO AVENUE SPECIFIC PLAN AREA 2014-2015 PLANNING FEES INTERIM EFFECTIVE DATE: SEPTEMBER 23,2014 EFFECTIVE DATE: NOVEMBER 24, 2014 3. Use Permit (2,501 to 10,000 sqft) $3,736 4. Use Permit (10,001 – 40,000 sqft) $4,761 5. Use Permit (40,001 – 100,000 sqft) $5,625 6. Use Permit (100,001 + sqft) $6,918 Environmental Review and Special Studies 1. Specific Plan Environmental Check List and Initial Study Consultant costs, plus City administrative fee (30% of consultant cost) 2. Categorical Exemption $204 3. Negative Declaration (City Prepared) $3,669 (any consultant costs are additional) 4. Mitigated Negative Declaration (City Prepared) $10,641 (any consultant costs are additional) 5. Administrative Fee for consultant prepared environmental documents 30% of consultant cost 6. Administrative fee for consultant prepared special study 30% of consultant cost Miscellaneous 1. Staff time per hour $191 2. Pre-Application Review Meeting with Staff $0 3. Pre-Application Design Review with Written Comments (staff time per hour) $191 4. Pre-Application Study Session with Planning Commission or Design Review Board $1,985 5. Community Design Charrette (if City Hosted) $2,865 6. Public Notice Mailing List Generation $101 7. Public Notice Mailing Fee (per address) 1st class postage, plus 7 cents per envelop 8. Laserfiche/ Archiving $3 per page SPA Specific Plan Maintenance Fee Projects Applied To Amount Payable at time of building permit issuance • Construction of new structures • Additions to existing structures $ 160 per residential unit $0.13 per sq ft of non- residential 2328579.2