TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF DEVELOPMENT SERVICES
DATE: NOVEMBER 15, 2022
SUBJECT: PUBLIC HEARING TO CONSIDER ADOPTION OF AN UPDATED LIBRARY
IMPACT FEE PROGRAM ON BEHALF OF THE PLACENTIA LIBRARY DISTRICT Placentia City Council
AGENDA REPORT
SECOND READING AND ADOPTION
Ord No..O-2022-10 Date 12/6/22 Item No. 11.
First Reading and Approval: 11/15/22
Reviewed and Approved:
Department Head /
Deputy City Clerk `6�/�.(,1146----
FISCAL
IMPACT: These Development Impact Fees are established for cost recovery or statutory purposes only, and any fees collected will be utilized by the Placentia Library District, not the City of Placentia. There is no fiscal impact to the City associated with the recommended actions in that any collected fee will be utilized by the Placentia Library District. The adoption of revised development impact fees for the Library District will not have an immediate impact on revenues to the Library District until effective 60 days subsequent to adoption. This update essentially adjusts and adopts the fees on behalf of the Library District.
SUMMARY:
As a Special District as defined by the State of California, the Placentia Library District must rely upon the local jurisdiction (City of Placentia) having authority to impose Development Impact Fees (DIFs). On August 15, 2022, the Placentia Library District adopted an Impact Fee Nexus Study and also adopted updated Impact fees. For those fees to become effective, the City of Placentia must adopt the updated Impact fees on behalf of the Library District.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Open the public hearing concerning the Updated Library Impact Fees; and
2. Receive the staff report, consider all public testimony, ask questions of Staff; and
3. Close the public hearing; and
4. Find that the recommended actions are exempt from environmental review and direct Staff to file a Notice of Exemption, pursuant to CEQA Section 15061(b)(3) of the CEQA Guidelines, Section 21065 of the Public Resources Code, and the City of Placentia Local Guidelines for implementing CEQA; and
1.f.
Dec 6, 2022
City Council Agenda
November 15, 2022
Library District Impact Fees
5. Waive full reading, by title only, and introduce for first reading, Ordinance No. 0-2022-10, an Ordinance of the City Council of the City of Placentia, California, finding that establishing Placentia Library District impact fees is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Section 15061(B)(3) and, approving a Library Development Impact Fee Nexus Study Report, and amending Chapter 5.02 (Citywide Development Impact Fees) of the Placentia Municipal Code adding a new Section 5.02.190 to establish a Library Development Impact Fee Program and adopting necessary findings for the establishment of the Library Development Impact Fees to financially mitigate impacts to Library facilities; and
6. Adopt Resolution No. R-2022-79, a Resolution of the City Council of the City of Placentia, California, finding that approval of Placentia Library District impact fees is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Section 15061(b)(3) and, approving the Placentia Library District Development Impact Fees to finance mitigation of impacts to Library facilities; and
7. Approve and authorize the City Administrator to sign and execute the Agreement for collection of Library Impact Fees between the City of Placentia and the Placentia Library District.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to:
Improve City Governance, Goal 8, as this item will serve to help the Placentia Library District update its existing Impact Fee Program which cannot be accomplished without City cooperation.
As such, assisting the Library in modernizing and updating their Impact Fee program will enhance City Governance by furthering the partnership with the Placentia Library District.
BACKGROUND:
Development impact fees are a commonly used method of collecting a proportional share of funds from new development for infrastructure improvements and/or other public facilities. With rare exceptions, development impact fees are one-time funds restricted to funding capital costs for new facilities and are not used for annual operations and/or maintenance. Impact fees may only be imposed on new development, and the fee proceeds must be expended on improvements needed as a result of the new development.
Pursuant to the Mitigation Fee Act ("Act"), California Government Code Section 66000, et seq. (also known as AB 1600), adoption of development impact fees requires a Nexus Study to establish the legal and policy basis for imposing the fee. A Nexus Study demonstrates the reasonable relationship between new development, the amount of the fee, and the type of capital improvements projects which may be funded by the fee. More specifically, a Nexus Study presents certain findings to meet the procedural requirements of the Act, which are as follows:
City Council Agenda
November 15, 2022
Library District Impact Fees
1. Identify the purpose of the fee.
2. Identify the use to which the fee is to be put.
3. Determine how there is a reasonable relationship between the fee's use and the type of development project on which the fee is imposed ("benefit relationship").
4. Determine how there is a reasonable relationship between the need for the facilities and the type of development project on which the fee is imposed ("impact relationship").
5. Determine how there is a reasonable relationship between the amount of the fee and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed ("proportional relationship").
While cities and counties receive their taxing authority from the State Legislature under Article XIII, Section 24, they can impose DIFs pursuant to their police power without the necessity of authority from the Legislature. However, special districts (such as the Placentia Library District) have no such police power. They must rely on cities and counties to impose DIFs or other statutory authority, such as SB 50, which grants school districts authority to impose DIFs with specific requirements and restrictions. Special districts may consider and adopt development impact fees programs, but only public agencies with land use authority (such as cities and counties) may adopt and collect such fees. As such, in most instances, a special district will need to work with cities or counties that have land use authority over the territories of the special district.
On August 15, 2022, the Board of Trustees of the Placentia Library District adopted a Resolution approving the Placentia Library District Impact Fee Nexus Study Update and also requesting that the Placentia City Council implement the updated Library Impact Fee Program on behalf of the District. Pursuant to State law, for the updated fees to become effective, the City of Placentia must adopt the updated Impact fees on behalf of the Library District. Staff has prepared an Ordinance (attached) which will codify the Placentia Library District Development Impact Fees 31 days after adoption and provide proper authority to impose such fees 60 days after the attached fee Resolution is adopted by City Council.
DISCUSSION:
In 2008, the District prepared a Nexus Study establishing the District's current library impact fee program. This year, the District prepared a Library Impact Fee Nexus Study Update ("Nexus Study Update") to establish the legal and policy basis for the collection of updated library impact fees. (Attachment 1) The Nexus Study Update also outlines the procedural requirements for approval of the Nexus Study Update and the updated library impact fees by the Board of Trustees and later adoption by the Placentia City Council. Also, the Nexus Study Update summarizes the specific requirements for the annual administration of the fee program. The figure below summarizes the District's current and updated library impact fees.
City Council Agenda
November 15, 2022
Library District Impact Fees
Summary of Current and Updated Library Impact Fees
Maximum
Current Library
Library Impact Impact Fee %
Land Use Category Unit ` Fee (2008) (2022) $ Change Change Calc a b c=a -b d=c/a-1
Single -Family Detached Housing 2 BSQFT $0.92 $0.72 ($0.20) -21.7% Single -Family Attached Housing 2 BSQFT $0.92 $1.08 $0.16 17.4% Multi -Family Housing BSQFT $1.12 $1.81 $0.69 61.6%
Mobile Home 2 BSQFT $0.92 $1.08 $0.16 17.4%
Accessory Dwelling Unite BSQFT See Note4
Retail / Commercial BSQFT $0.10 $0.12 $0.02 20.0%
ofice BSQFT $0.14 $0.17 $0.03 21.4%
Industrial BSQFT $0.07 $0.08 $0.01 14.3%
Notes:
1 BSQFT means living area square feet or building square feet 2 New residential impact fee category.
3 Accessory dwelling units ("ADUs") 750 square feet or less in size are exempt All other ADUs shall be imposed the effective fee of the existing land use category of the parcel upon which the ADU is constructed.
FISCAL IMPACT:
These Development Impact Fees are established for cost recovery or statutory purposes only, and any fees collected will be utilized by the Placentia Library District, not the City of Placentia.
There is no fiscal impact to the City associated with the recommended actions in that any collected fee will be utilized by the Placentia Library District. The adoption of revised development impact fees for the Library District will not have an immediate impact on revenues to the Library District until effective 60 days subsequent to adoption. This update essentially adjusts and adopts the fees on behalf of the Library District.
CEQA:
In accordance with the California Environmental Quality Act (CEQA) and State and local Environmental Guidelines, Staff recommends that City Council adopt a Common Sense Exemption pursuant to Section 15061 (b)(3) of the State CEQA Guidelines in that the proposed project (adoption of updated Impact Fees on behalf of the Library District) will not result in changes to the existing physical environment, and the physical environment will not be modified as a result of its adoption. Upon City Council adoption of a finding of a Common Sense exemption, a Notice of Exemption will be filed.
City Council Agenda
November 15, 2022
Library District Impact Fees
Prepared by:
Jose M. L. bert
Direc or of Development Services
Reviewed and approved:
Damien R. Arrula
City Administrator
Reviewed and approved:
Jennifer/Lampman
Director of Finance
Attachments:
1. Ordinance No. 0-2022-10 - approving a Library Development Impact Fee Nexus Study Report, and amending Chapter 5.02 of the Placentia Municipal Code a. Exhibit A. Placentia Library District Library Development Impact Fee Nexus Study Update
b. Proposed PMC Section 5.02.190 establishing Library Development Impact Fees
2. Resolution No. R-2022-79 approving the Placentia Library District Development Impact Fees
3. Agreement for collection of Library Impact Fees between the City of Placentia and the Placentia Library District
a. Placentia Library District Board of Trustees Resolution No. 2022-05