Resolution Amending Resolution No. 19-43 to Conform to New State Law Regarding Development Impact Fee Waivers and Reductions for Accessory Dwelling Units,

Agenda Item D.12

CPMS CONSENT CALENDAR
Meeting Date: December 20, 2022
TO: Mayor and Councilmembers
FROM: Peter Imhof, Planning and Environmental Review Director CONTACT: Lisa Prasse, Current Planning Manager
SUBJECT: Resolution Amending Resolution No. 19-43 to Conform to New State Law Regarding Development Impact Fee Waivers and Reductions for Accessory Dwelling Units , and Finding the Resolution to be Exempt under the California Environmental Quality Act
RECOMMENDATION:

A. Adopt Council Resolution No. 22 - ____ entitled “A Resolution of the City Council of the City of Goleta, California Amending the Development Impact Fee Reduction Program for Beneficial Projects.”
B. Find the adoption of the Resolution exempt from the California Environmental Quality Act under Guideline 15061 and direct staff to file a Notice of Exemption with five (5) business days.

BACKGROUND:

On February 19, 2019, the City Council adopted Ordinance 19-04, which established the City’s current Development Impact Fee s (DIFs) categories and approved the updated nexus study. (Goleta Municipal Code Chapter 17.70.) As part of that pro cess, the City Council considered various categories of “beneficial proj ects” potentially eligible for DIF reductions or waivers and appropriate fee reductions by project category. The City Council held a workshop on February 6, 2019, and subsequent public hearings on April 2, 2019, and June 18, 2019. On July 16, 2019, the Ci ty Council adopted Resolution 19- 43, which established a list of Beneficial Projects that would be eligible for either a complete waiver of DIFs or a reduction in the required fees.

One of the eligible categories was Accessory Dwelling Units (ADUs). The Council waived DIFs for ADUs with floor areas less than 500 sq. ft. and capped the DIFs at $5,000 for ADUs with floor areas over 500 sq. ft.

On October 9, 20 19, Governor Newson signed SB 13 regarding ADUs, which was codified as Government Code Section 65852.2. One of the provisions enacted by SB 13 addresses DIFs and sets different thresholds than those in Council Resolution No. 19-43. 1 Meeting Date: December 20, 2022

Page 2 of 3 ends

The State standards eliminate DIFs for ADUs with less than 750 sq. ft. of floor area and require DIFs for ADUs over 750 sq. ft. to be proportional to DIFs that would be associated with the primary house . Adopted Title 17 ADU provisions correct ly reflect State law regarding DIFs.

DISCUSSION:

The proposed Resolution (Attachment 1) modifies the references to fee waivers and reductions for ADUs, since those provisions do not align with adopted State law as outlined above. The City will continue to impose DIFs on ADUs in accordance with the provisions of Government Code Section 65852.2(f)(3) and C hapter 17.41.030 of the Goleta Municipal Code and will continue to cap DIFs for ADUs at $5,000 consistent with Council’s previous action. The proposed Resolution retains the previously adopted Development Impact Fee waivers for all projects by qualifying non-profit organizations, and all qualifying non-profit and for-profit Special Care Homes, Residential Care Facilities, Assisted Living, Supportive Housing, Transitional Housing, Special Needs Housing, Child Care Facility, Family Day Care or Day Care as outlined in the Exhibit A to the Resolution.

This item is a clean-up matter and will eliminate any confusion for the public and staff as to the applicable DIFs relative to ADUs between State law, Title 17, and the Beneficial Project Resolution. Attachment 2 is a redline version of Council Resolution 19 -43 showing the changes and Attachment 3 is Council Resolution 19-43 as adopted for reference.

ENVIRONMENTAL IMPACTS

The adoption of the Resolution is exempt from the California Environmental Quality Act in accordance with Section 15061(b)(3). The adoption of the proposed Resolution will align the City’s Beneficial Project Resolution with Governmental Code 65852. 2(f)(3). It does not have the potentia l to cause a significant effect on the environment and will not lead to physical changes. Therefore, this project is not subject to CEQA and a Notice of Exemption (NOE) can be filed. A copy of the NOE is provided as Attachment 4.

FISCAL IMPACTS:

There is no new fiscal impact expected from this change. The City will continue to collect impacts fees as authorized by State law for ADUs over 750 sq. ft. in area.

ALTERNATIVES:

The City Council could choose to continue the matter for additional discussion.

2 Meeting Date: December 20, 2022

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Reviewed By: Legal Review By: Approved By:

___________________ ___________________ _________________ Kristine Schmidt Megan Garibaldi Robert Nisbet
Assistant City Manager City Attorney City Manager

ATTACHMENTS:

1. A Resolution of the City Council of the City Of Goleta, California amending the Development Impact Fee Reduction Program for Beneficial Projects

2. Council Resolution No. 19 -43 (redlined to show the modifications to the ADU provisions)

3. Council Resolution No. 19-43 (as adopted)

4. Notice of Exemption

3 ATTACHMENT 1

AMENDED BENEFICIAL PROJECT RESOLUTION

4 Resolution 22-__ Amended DIF Reduction Program for Beneficial Projects Page 1

RESOLUTION NO. 22-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GOLETA, CALIFORNIA AMENDING THE DEVELOPMENT

IMPACT FEE REDUCTION PROGRAM FOR BENEFIC IAL

PROJECTS

WHEREAS the City of Goleta’s General Plan includes policies encouraging the development of incentives for development of projects deemed beneficial within the City of Goleta; and

WHEREAS, on February 19 , 2019, the City Council adopted an ordinance establishing and imposing developm ent impact fees in accordance with Government Code sectio ns 66000 et. seq. (“DIF Ordinance ”), which became effective on April 20, 2019 , and is codified as Chapter 17.70 of Title 17 of the Goleta Municipal Code; and

WHEREAS the DIF Ordinance established the Cit y Council’s ability to adopt a resolution to reduc e, adjus t or waive DIFs for categories of projects deemed beneficial by the City Council; and

WHEREAS the purpose of establishing DIF reductions and waivers for projects deemed beneficial is to encourage the development of specific types of projects that reflect and meet City policy priorities and goals; and

WHEREAS on July 19, 2019, the City Council adopted Resolution 19 -43 that established a list of types of projects that are deemed benefi cial to the City’s priorities and goals and, therefore, are eligible for a D IF reduction or waiver. This list included a DIF waiver for Accessory Dwelling Units (ADUs) that were under 500 sq. ft. and a DIF reduction for ADUs that were over 500 sq. ft.; and

WHEREAS on January 1, 2020, Government Code Section 658 52.2 (f) (3) (a) went into effect and states:
“Any local agency, special district, or water corpo ration shall not impose any impact fee upon the development of an accessory dwelling unit less than 750 square feet. Any impact fee charged for an accessory dwe lling unit of 750 square feet or more shall be charged proportionately in relation to the squar e footage of the primary dwelling unit”; and

WHEREAS the provisions of Title 17 regarding Accessory Dwelling Units already co mply with new Government Code 65852. 2 and Goleta Munici pal Code Section 17.41.030(G) (1) and (2); and

WHEREAS the City s eeks to (1) conform Resolution 19-43 with Government Code Section 65852.2 and (2) place the previously adopt ed cap 5 Resolution 22-__ Amended DIF Reduction Program for Beneficial Projects Page 2

on the amount of Devel opment Impact fees imposed on ADUs over 750 sq. ft.

The Beneficial Pr oject types will be those included in Exhibit A to this Resolution.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF GOLETA AS FOLLOWS:

SECTION 1. Recitals

The City Council hereby finds and determ ines that the foregoing recitals, which are incorporated herein by reference, ar e true and correct.

SECTION 2. Adoption

The City Council hereby finds and declares the categorie s of projects listed and defined in Exhibit “A”, attached hereto and incorpora ted herein, to be beneficial projects f or purposes of the DIF Ordinance and shall supersede previously adopted lists of categories of beneficial projects eligible for DIF waiver or reduction.

SECTION 3. Documents

The documents and other materials , which constitute the record of proceedings upon which this decision is based, are in the custody of the City Clerk, City of Goleta, 130 C remona Drive, Suite B, Gole ta, California, 93117.

SECTION 4. Certification

The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED this ___ day of ________
2022.

___________ ___

PAULA PEROTTE
MAYOR

ATTEST: APPROVED AS TO FORM:

________________________ _____________________
DEBORAH S. LOPEZ MEGAN GARIBALDI

CITY CLERK CITY ATTORNEY
6 Resolution 22-__ Amended DIF Reduction Program for Beneficial Projects Page 3

STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss.

CITY OF GOLETA )

I, DEBORAH S. LOPEZ, City Cle rk of the City of Goleta, California, DO HEREBY CERTIFY that the foregoing Resolution No. 22-__ was duly adopted by the City Council of the City of Goleta at a reg ular meeting held on the __ day of ____________ 2022, by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

(SEAL)

___________________________
DEBORAH S. LOPEZ

CITY CLERK
7 Exhibit A to Council Resolution No. 22 - _______
Beneficial Projects DIF Reduction
P a g e | 4

Exhibit A

DEVELOPMENT IMPACT FEE REDUCTION

BENEFICIAL PROJECT CATEGORIES

Section 1. Definitions

For purposes of beneficial project development impact fee reducti ons, the following terms shall be defined as follows:

“Accessory Dwelling Unit (ADU)”: As presently defined in the Accessory Dwelling Units Ordinance 18 -01, or may hereafter be amended, in the City of Go leta’s Zoning Ordinance.

“Child Care Facility”, “Family Day Care” and “Day Car e”: As presently defined, or may hereafter be amended, in the City of Goleta’s Zoning Ordinances.

“Mobile Home”: As presently defined , or may hereafter be amended, in the C ity of Goleta’s Zoning Ordinances . Fee reductions sh all apply only to new mobile homes developed or placed on existing vacant lots and qualifying as affordable housing, as defined herein.

“Non-Profits”: Any 501(c)(3) non-profit entity or governmental ag ency which provides public access to sites of signif icant historical, cultural or natural resource va lue, and/or provides essential health, safety, welfare or other community service needs, such as community recreational facilities.

“Special Care Home”, “Residential Care Facilities”, “Assisted Living”, “Supportive Housing”, “Transit ional Housin g” and “ Special Needs Housing” : As presently defined, or may herea fter be amended, in the Cit y of Goleta’s Zoning Ordinances.

Section 3. All projects by qualifyi ng Non-Profit Organizations, as defined herein, shall receive a 100% Development Impact Fee reduction up to the first 15,000 square feet of the project.

DIF reduction. Upon change of non-profit status or acquisition of the property by a for-profit entity that does not qualify as a beneficial project , the for -profit entity shall pay the difference between the full amount of DIFs at the time the DIF was discounted and the reduced DIF s previously paid, plus annual adjustments for each year the discount was a pplied. Each annual adjustment shall be in accordance to a perc entage equal to the appropriat e Engineering Cost Index as published by Engineering News Record, or its successor publi cation, for the preceding 12 months for which the ECI is available and such ECI sh all b e specific to California or the nearest region. Suc h difference in DIFs shall be paid prior to close of escrow before tran sfer of ownership or poss ession. For a change of use to another beneficial project category, the applicant shall pay the difference for any greater amount of DIFs owed under the new beneficial project category.

Section 4. All qualifying non-profit Special Care Homes , Residential Care Facilities, A ssisted Living, Supportive Housing, Transitional Housing, Special Needs Housing, Child Care Facility, Family Day Care or Day Care shall receive a 100% Development Impact Fee reduction.

All other for -profit Special Care Homes , Residen tial Care Facilities, Assisted Living, Supportive Housing, Transitional Housing, Special Needs Ho using, Child Care Facility, Family Day Care or Day Care shall receive an 85% Development Impact Fee reduction.

An applicant receiving a DIF beneficial redu ction for a project qu alifying as either a non-profit or for-profit Special Care Home, Residential Care Facilities, Assisted Living, Supportive Housing, Transit ional Housing, Special Needs H ousing, Child Care Facility, Family Day C are or Day Care as define d in this resolution s hall record a restrictive covenant on the subject property limiting its use to either a non-profit or for -profit Special Care Home, Reside ntial Care Facilities, Assiste d Living, Supportive Housing, Transitiona l Housing, Special Needs Housing, Child Care Facility, Family Day Care or Day Care in exchange for the DIF reduction.

Upon change of use or non-profit status, the applicant or its successor in interest shall pay the difference between the full amount of D IFs at the time the DIF w as discounted and the reduced DIFs previously paid, plus annual adjustments for each year the dis count w as ap plied. Each annual adjustment shall be in accordance to a percentage equal to the appropriate Engineering Cost Index (ECI) as published by Engineering News Record, or its successor publication, for the preceding 12 months for which the ECI is a vailable and such ECI shall be specific to California or the ne arest region. Such difference in DIFs shall be paid prior to close of e scrow before transfer of ownership or possessio n. For a change of use to another beneficial project category, the applica nt shall pay the difference for any greater amount of DIFs owed under the new beneficial proj ect category.

9 Exhibit A to Council Resolution No. 22 - _______
Beneficial Projects DIF Reduction
P a g e | 6

Section 5. All requests for DIF reductions shall be made prior to the t ime of a project’s planning approval or, where no planning permit is requi red, pri or to building permit issuance. An untimely DIF reduction request shall be denied.

10 ATTACHMENT 2

Redline of Council Resolution 19-43

11 Resolution 19-43 DIF Reduction Program for Beneficial Projects Page 1

RESOLUTION NO. 19-43

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GOLETA, CALIFORNIA ADOPTING A DEVELOPMENT IMPACT

FEE REDUCTION PROGRAM FOR BENEFICIAL PROJECTS

WHEREAS the City of Goleta’s General Plan includes policies encouraging the development of incentives for development of projects deemed beneficial within the City of Goleta; and

WHEREAS, on February 19 , 2019, the City Council adopted the Development Impact Fee (DIF) Ordinance , which became effective on April 20, 2019; and

WHEREAS the ad opted DIF Ordinance established the City Council’s ability to adopt a resolution to reduce, adjus t or waive DIFs for categories of projects deemed beneficial by the City Council; and

WHEREAS the purpose of establishing DIF reductions for projects deemed beneficial is to identify specific types of development that reflect City policy priorities and need relief from paying DIFs.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF GOLETA AS FOLLOWS:

SECTION 1. Recitals

The City Council hereby finds and determines that the foregoing recitals, which are incorporated herein by reference, ar e true and correct.

SECTION 2. Adoption

SECTION 3. Documents

12 13
14 Exhibit A
Resolution No. 19-43
DIF Ordinance Beneficial Project Categories

DEVELOPMENT IMPACT FEE REDUCTION

BENEFICIAL PROJECT CATEGORIES
Section 1. Definitions
For purposes of bene ficial projec t development impact fee reduction s, the following terms shall be defined as follows:
“Accessory Dwelling Unit (ADU)”: As presently defined in the Accessory Dwelling Units Ordinance 18- 01, or may hereafter be amended, in the City of Goleta’s Zoning Ordinances.
“Child Care Facility”, “Family Day Care” and “Day Care”: As presently defined, or may hereafter be amended, in the City of Goleta’s Zoning Ordinances. “Mobile Home”: As presently defined, or may hereafter be amended, in the City of Goleta’s Zoning Ordinances. Fee reductions shall apply only to new mobile homes developed or placed on existing vacant lots and qualifying as affordable housing, as defined herein.
“Non-Profits”: Any 501(c)(3) non-profit entity or governmental agency which provides public access to sites of significant historical, cultural or natural resource value, and/or provides essential health, safety, welfare or other community service needs, such as community recreational facilities. “Special Care Home”, “Residential Care Facilities”, “Assisted Living”, “ Supportive Housing”, “Transitional Housing” and “Special Needs Housing”: As presently defined, or may hereafter be amended, in the City of Goleta’s Zoning Ordinances.

Section 2. ADUs with a floor area of 750 sq. ft. or less will not be subject to Development Impact Fees (DIFs) in accordance with Government Code Section 65852.2 (f) (3) as amended. Further, ADUs with a floor area over 750 sq. ft. will be charged DI Fs in proportion to the primary dwelling unit in accordance with Government Code Section 65852.2 (f) (3) but no more than $5,000 to be distributed across applicable DIF categories. shall receive a Development Impact Fee waiver/reduction as follows:
1) ADUs with a floor area of 500 square feet or less will receive a 100% DIF waiver.
15 2) ADUs with a floor area exceeding 500 square feet will be charged a flat $5,000 DIF to be distributed evenly across all applicable DIF categories.

Section 3. In addition to the requirements of Section 2, ADUs qualifying for a Development Impact Fee reduction shall agree to all of the following additional terms in exchange for a reduction in DIFs:

1. As a condition of approval, ADU owners shall not rent the ADU as a short - term rental (for less than 30 days).

2. As a condition of approval, ADU owners shal l agree to provide the City of Goleta documentation of ADU rents, where applicable, me eting the requirements of the State Housing and Community Development Department on an annual or other periodic basis.

Section 4. Any ADU project with a floor area of 500 square feet or less approved since adoption of the current ADU regulations (Ord. 18 -01) shall be entitled to a refund of all Development Impact Fees paid for the project. Any ADU pr oject with a floor area exceeding 500 square feet approved since adoption of Ord. 18 -01 shall be entitled to a refund of any DIFs paid in excess of $5,000.

Section 5 3. All projects by qualifying Non-Profit Organizations , as defined herein, shall receive a 100% Development Impact Fee reduction up to the first 15,000 square feet of the project.

An applicant receiving a DIF beneficial reduction for a project qualifying as a non- profit organization as defined in this resolution shall record a restrictive co venant on the subject property limiting its use to non -profit purposes in exchange for the DIF reduction. Upon change of non -profit status or acquisition of the property by a for-profit entity that does not qualify as a beneficial project , the for -profit entity shall pay the difference between t he full amount of DIFs at the time the DIF was discounted and the reduced DIFs previously paid, plus annual adjustmen ts for each year the discount was applied. Each annual adjustment shall be in accordance to a perc entage equal to the appropriate Engineering Cost Index as published by Engineering News Record, or its successor publication, for the preceding 12 months for which the ECI is available and such ECI shall be specific to California or the nearest region. Suc h difference in DIFs shall be paid prior to close of escrow before tran sfer of ownership or possession . For a change of use to another beneficial project cat egory, the applicant shall pay the difference for any greater amount of DIFs owed under the new beneficial project category.

Section 6 4. All qualifying non-profit Special Care Homes , Residential Care Facilities, Assisted Living, Supportive Housing, Tra nsitional Housing, Special 16 Needs Housing, Child Care Facility, Family Day Care or Day Care shall receive a 100% Development Impact Fee reduction.

All other for -profit Special Care Homes , Residential Care Facilities, Assisted Living, Supportive Housing, Tr ansitional Housing, Special Needs Housing, Child Care Facility, Family Day Care or Day Care shall receive an 85% Development Impact Fee reduction.

An applicant receiving a DIF beneficial reduction for a project qualifying as either a non-profit or for-profit Special Care Home, Residential Care Facilities, Assisted Living, Supportive Housing, Transit ional Housing, Special Needs Housing, Child Care Facility, Family Day Care or Day Care as defined in this resolution shall record a restrictive covenant on t he subject property limiting its use to either a non-profit or for -profit Special Care Home, Reside ntial Care Facilities, Assisted Living, Supportive Housing, Transitio nal Housing, Special Needs Housing, Child Care Facility, Family Day Care or Day Care in exchange for the DIF reduction.

Upon change of use or non-profit status, the applicant or its successor in interest shall pay the difference between the full amount of DIFs at the time the DIF was discounted and the reduced DIFs previously paid, plus annu al adjustments for each year the discount was applied. Each annual adjustment shall be in accordance to a percentage equal to the appropriate Engineering Cost Index (ECI) as published by Engineering News Record, or its successor publication, for the preced ing 12 months for which the ECI is available and such ECI shall be specific to California or the ne arest region. Such difference in DIFs shall be paid prior to close of escrow before transfer of ownership or possession. For a change of use to another bene ficial project category, the applicant shall pay the difference for any greater amount of DIFs owed under the new beneficial project category.

Section 7 5. All requests for DIF reductions shall be made prior to the time of a project’s planning approval or, where no planning permit is required, prior to building permit issuance. An untimely DIF reduction request shall be denied.

17 ATTACHMENT 3

Council Resolution 19-43

18 19
20 21
22 23
24 ATTACHMENT 4

Notice of Exemption

25 1
November 2022

NOTICE OF EXEMPTION (NOE)

To: Office of Planning and Research From: City of Goleta P.O. Box 3044, Room 212 130 Cremona Drive
Sacramento CA 95812-03044 Goleta CA 93117

✅Clerk of the Board of Supervisors
County of Santa Barbara
105 E. Anapamu Street, Room 407
Santa Barbara CA 93101

Project Title:

Amendment to the Beneficial Projects Development Impact Fee (DIF Reduction ) Resolution

Project Applicant
City of Goleta

Project Location:

Address: Citywide
City: Goleta CA 93117
County: Santa Barbara
APN: N/A

Description of Nature, Purpose, and Beneficiaries of the Project:

The project is to adopt a new Resolution that amends Council Resolution No. 19-43 to align the DIFs charged for Accessory Dwelling Units with Government Code Section 65852.2(f)(3)(a).

Name of Public Agency Approving the Project:

Goleta City Council

Name of Person or Agency Carrying Out the Project:

City of Goleta, Planning and Environmental Review Department

Exempt Status: (check one)
 Ministerial (Section 15268):
 Declared Emergency (Section. 15269(a):
 Emergency Project (Section 15269(b) (c):
✅Categorical Exemption: State the type and Section number: §15061(b)(3)  Other:

26 2
November 2022

Reason(s) why the project is exempt:

Pursuant to the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code §§ 21000 et seq.), the regulations promulgated thereunder (14 Cal.

Code of Regulations §§ 15000 et seq.), and the City’s Environmental Review Guidelines, the project has been found to be exempt from CEQA and a Notice of Exemption is proposed. The City of Goleta is acting as the Lead Agency for this project.

The adoption of the Resolution is exempt from CEQA in accordance with Section 15601(b)(3). The adoption of the Resolution does not have the potential to cause a significant effect on the environmental and will not lead to physical changes. The Resolution simply aligns City regulations with Stat e law regarding the DIFs that can be imposed upon the construction of ADUs. Therefore, this project is not subject to CEQA, and a Notice of Exemption (NOE) can be adopted.

City of Goleta Contact Person, Telephone Number, and email:

Lisa Prasse, AICP; Current Planning Manager
805-961-7542; [email protected]

Name Title Date

If filed by the applicant:

Attached certified document of exemption finding
Has a Notice of Exemption been filed by the public agency approving the project? Yes No

Date received for filing at OPR: _______________________________________

Note: Authority cited: Section 21083 and 21110, Public Resources Code Reference Section 21108, 21152, and 21152.1, Public Resources Code

Goleta City CouncilDecember 20, 2022

Goleta City Council
December 20, 2022