City Council
MEETING DATE: 12/10/2014
TITLE:
Title
Reduction of Multiple Species Local Development Mitigation Fee
End
FROM:
Pat Milos, Community Development Director
RECOMMENDATION:
Recommendation
Staff recommends that the City Council approve a Resolution adopting the amended Local Development Mitigation Fee Schedule applicable to new development within the City of Cathedral City.
Body
BACKGROUND:
On March 13, 2014, the City of Desert Hot Springs approved joining the Coachella Valley Multiple Species Habitat Conservation Plan (MSHCP) through a Major Amendment. The Major Amendment will not increase the overall cost of the MSHCP 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 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.
DISCUSSION:
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 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. 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 LDMF based on both the situation in May 2011 when Desert Hot Springs was not entirely in the MSHCP and the anticipated completion of the Major Amendment with the City entirely within the MSHCP. The Nexus Study is available online at:
The LDMF is necessary for completion of the Major Amendment to the MSHCP Permit because the Wildlife Agencies require that the Local Permittees identify sufficient funding for implementation of the MSHCP. 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 $5308 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 CPI adjustment based upon the Consumer Price Index 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. CVCC will update the Nexus Study at least every five years, and more often if deemed necessary, to ensure that the 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 the Coachella Valley Association of Governments (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.
Implementation of the MSHCP is designed to be self-funding and no other assessments are required of the Permittees. Jurisdictions are also allowed to retain 1% of the LDMF they collect as an administrative cost. The MSHCP overall is funded from the LDMF, tipping fees and infrastructure mitigation payments from CVAG, Coachella Valley Water District, Caltrans, Imperial Irrigation District, and Mission Springs Water District.
FISCAL IMPACT:
Implementation of the MSHCP is designed to be self-funding and no other assessments are required of the Permittees. Jurisdictions are also allowed to retain 1% of the LDMF they collect as an administrative cost. The MSHCP overall is funded from the LDMF, tipping fees and infrastructure mitigation payments from CVAG, Coachella Valley Water District, Caltrans, Imperial Irrigation District, and Mission Springs Water District.
ATTACHMENTS:
Proposed Resolution