RESOLUTION NO. 2024-9385
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS ADOPTING THE 2025 DEVELOPMENT IMPACT FEE SCHEDULE BASED ON THE FINDINGS SET FORTH IN THE CITY OF SAN MARCOS DEVELOPMENT IMPACT FEE NEXUS STUDY UPDATE DATED OCTOBER 4, 2024 WHEREAS, in 1988, the voters of the City of San Marcos, California adopted an ordinance establishing a public facilities approach to growth management within the City (Proposition R); and WHEREAS, as a result of Proposition R, on August 4, 1990, the City adopted Ordinance No. 90-856 and Resolution No. 90-3508. Ordinance No. 90-856 established the City’s first Public Facilities Financing (PFF) Plan, and Resolution No. 90-3508 established the amount of the public facility fees; and WHEREAS, on October 28, 2003, the City adopted Ordinance 2003-1203 the Updated Public Facilities Financing Plan to establish public facilities fees to mitigate the impact of development; and WHEREAS, on October 14, 2003, the City adopted Resolution 2003-6217 establishing the updated public facilities fees to be imposed on new development and redevelopment within the City of San Marcos; and WHEREAS, on October 25, 2005, the City adopted Resolution 2005-6620 updating the Citywide public facilities fees in 2005 as required by the Public Facilities Fees Ordinance; and WHEREAS, on February 13, 2007, the City adopted Resolution 2007-6840 updating the Citywide public facilities fees in 2007 as required by the Public Facilities Fees Ordinance; and WHEREAS, on February 12, 2008, the City adopted Resolution 2008-7007 updating the Citywide public facilities fees in 2008 as required by the Public Facilities Fees Ordinance; and WHEREAS, in 2021, Assembly Bill 602 (“AB 602”) amended the Mitigation Fee Act of the California Government Code, which governs Development Impact Fees; and WHEREAS, AB 602 emphasized the need to adopt a Development Impact Fee Nexus Study at a public hearing prior to the adoption of any new or increased Development Impact Fees; and WHEREAS, the City considered and adopted the Development Impact Fee Nexus Study Update prepared by Willdan Financial Services dated October 4, 2024 and findings incorporated therein at a duly notice public hearing on November 26, 2024; and WHEREAS, the Development Impact Fee Nexus Study provides a quantified basis for support of each Development Impact Fee and the legal support for the required findings that must be made to justify the amount of each Development Impact Fee, based on existing deficiencies of certain public facilities and the projected burdens on those facilities caused by prospective development in the City; and WHEREAS, the City Council has determined that Development Impact Fees should be established to provide for the City’s future provision of public facilities and essential services; and WHEREAS, the relationship between the use of the Development Impact Fees and the type of development is that the Development Impact fees will be used to acquire and construct new public facilities to meet the demands of new development; and WHEREAS, the relationship between the need for the public facilities and the Development Impact Fees is that each new development project will generate demands on public facilities and essential services, and the associated new facilities are needed to provide those services; and WHEREAS, the relationship between the amount of the Development Impact Fee and the cost of the portion of facilities attributed to new development is that the amount of fee collected is directly attributable to the projected number of residents, employees, or individuals to be served by any new development project; and WHEREAS, the Development Impact Fees are derived from, are based upon, and do not exceed the costs of the public facilities necessitated by new development for which the fees are imposed; and WHEREAS, notice of a public hearing before the City Council of the City of San Marcos concerning a proposed update of the Development Impact Fees was given, and on November 26, 2024 a duly noticed public hearing regarding the updated Development Impact Fee Schedule was held by the City Council of the City of San Marcos: and WHEREAS, the City Council has considered the information and public testimony presented in the public hearing and in the proposed document and staff report, all of which are included in the public record and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Marcos as follows:
SECTION 1. The foregoing recitals are true and correct, and incorporated herein by this reference.
SECTION 2. Findings pursuant to Government Code section 66001. The City Council finds and determines that the adjusted Development Impact Fees (incorporated herein by reference) comply with California Government Code section 66001, and as to each of the proposed fees to be imposed on new development. The City Council also makes the following findings consistent with the requirement of the Mitigation Fee Act:
Purpose of the Fee. Development impact fees are designed to ensure that new development will not burden the existing service population with the cost of facilities required to accommodate growth. The purpose of the fees documented by the Development Impact Fee Nexus Study is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide public facilities to new development.
Use of the Fee. The proceeds from the fees will be used to fund expanded facilities to serve new development. Facilities funded by these fees are designated to be located within the City’s sphere of influence. Fees addressed in this report have been identified by the City to be restricted to funding the following facility categories: transportation facilities, parks, recreation and trail facilities, fire and EMS facilities, advanced planning, habitat conservation, and storm drainage facilities. New developments result in increased demands on the City’s facilities. Any fees collected are not used to overcome past deficiencies, but rather are used for additional facilities and services necessary to meet projected future need from new development.
Relationship Between the Fee’s Use and the Type of Development Project on Which the Fee is Imposed. The City will restrict fee revenue to the acquisition of land, planning for and construction of facilities and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the additional resident and workers associated with new development. Under the Mitigation Fee Act, fees are not intended to fund planned facilities needed to correct existing deficiencies. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development classification that will pay the fees.
Relationship Between the Need for the Facility and the Type of Project. Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For each facility category, demand is measured by a single facility standard that can be applied across land use types to ensure a reasonable relationship to the type of development. For most facility categories service population standards are calculated based upon the number of residents associated with residential development and the number of workers associated with non-residential development. To calculate a single, per capita standard, one worker is weighted less than one resident based on an analysis of the relative use demand between residential and non-residential development. The standards used to identify growth needs are also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population.
Relationship Between the Amount of the Fee and the Cost of the Facility or Portion of the Facility Attributed to the Project. The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated new development growth the project will accommodate. Fees for a specific project are based on the project’s size. Larger new development projects can result in a higher service population resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new development project and the cost of the facilities attributable to that project.
SECTION 3. In accordance with the adopted Development Impact Fee Nexus Study and findings incorporated therein, the Recommended PFF (Per Square Foot) in Table 2 of the Development Impact Fee Schedule attached hereto as Exhibit “A” is hereby adopted.
SECTION 4. Following a duly noticed public hearing, Development Impact Fees may be adjusted periodically, no more frequently than annually, based on the Engineering News Record – Construction Cost Index to ensure that the fees will continue to generate sufficient funds to construct the facilities need to serve new development. Any increase in Development Impact Fees must be below the Maximum Justified PFF (Per Square Foot) in Table 1 of the Development Impact Fee (PFF) Schedule. The adjusted amounts shall be submitted to the City Council for consideration. If adopted by the City Council, the adjusted amounts shall become effective no earlier than sixty (60) days thereafter, or a later date as may be set by the City Council.
SECTION 5. All previous City Resolutions inconsistent with this Resolution are repealed to the extent inconsistent herewith.
SECTION 6. The levying of the Development Impact Fees has been reviewed by the City Council and staff in accordance with the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines and it has been determined that the adoption of this resolution is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines.
SECTION 7. The Fee Schedule for the Development Impact Fees attached as Exhibit “A” shall become effective on March 3, 2025.
PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS at a regular meeting held on the 26th day of November, 2024, by the following roll call vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
______________________________
Rebecca D. Jones, Mayor
City of San Marcos
ATTEST:
_____________________________
Phillip Scollick, City Clerk
City of San Marcos
ATTACHMENT(S):
Exhibit A – Development impact fee schedule