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HomeMy WebLinkAbout12/6/2006 - STAFF REPORTS - 1.B. A� �ppLM Spy iy 41 U u F c4!/FpRN�P City Council Staff Report DATE: December 6, 2006 Public Hearing SUBJECT: Resolution Increasing the Fringe-Toed Lizard Habitat Mitigation Fee FROM: David H. Ready, City Manager BY: Assistant City Manager— Administrative Services SUMMARY On July 31, 2006, the Coachella Valley Association of Governments (CVAG) Executive Committee approved a Memorandum of Understanding (MOU) with the California Department of Fish and Game that protects the permit for the Coachella Valley Fringe- Toed Lizard Habitat Conservation Plan (CVFTL HCP) while CVAG complete the revised Multiple Species Habitat Conservation Plan (MSHCP). One of the requirements of this MOU is that participating jurisdictions consider increasing the current CVFTL Impact fee based on a Nexus Study prepared by CVAG. The Nexus Study, which includes the fee calculations and pertinent findings that are required under state law, has been prepared and was approved by CVAG's Executive Committee on September 26, 2006. The proposed Resolution authorizes an increase in the CVFTL Impact Fee from $600 to $2,371 per disturbed acre effective February 1, 2007. RECOMMENDATION: 1. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE i CITY OF PALM SPRINGS, CALIFORNIA INCREASING THE FRINGE-TOED LIZARD MITIGATION FEE FOR DEVELOPMENT WITHIN HISTORICAL HABITAT AS IDENTIFIED IN THE COACHELLA VALLEY FRINGE-TOED LIZARD HABITAT CONSERVATION PLAN" 2. Authorize the City Manager to execute all documents necessary. STAFF ANALYSIS: In 1986, Coachella Valley cities, including the City of Palm Springs, the County of Riverside, Coachella Valley Association of Governments, California Department of Fish and Game, U.S. Fish and Wildlife Service and the Nature Conservancy cooperated in the preparation of the Coachella Valley Fringe-Toed Lizard Habitat Conservation Plan ("CVFTL HCP") to protect the habitat of the Coachella Valley Fringe-Toed Lizard ("CVFTL"). Approval of the HCP resulted in the issuance of a federal Endangered Species Act Section 10(a), Incidental Take Permit ("Permit"), by the U.S. Fish and Wildlife Service, which enables the participating cities and the County of Riverside to � ITEM NO. City Council Staff Report December 6, 2006—Page 2 Fringed-Toed Lizard Mitigation Fee authorize take of CVFTL habitat resulting from land development and other activities covered by the CVFTL HCP, Pursuant to the CVFTL HCP Agreement, there was imposed within the CVFTL Mitigation Fee Area a development impact fee ("CVFTL Impact Fee") to provide a funding source from new development for the acquisition of CVFTL habitat and related implementation costs to mitigate development impacts that result from new development. In 2001, Coachella Valley cities, including the City of Palm Springs and the County of Riverside, entered into a Memorandum of Understanding with the California Department of Fish and Game, and the U.S. Fish and Wildlife Service wherein the parties agreed that the CVFTL may best be protected by inclusion of the species in a Multiple Species Habitat Conservation Plan ("MSHCP"). In order to maintain the Permit in effect until completion of the MSHCP, California Fish and Game required that the cities and County adopt a revised CVFTL Impact Fee based on an updated nexus study. If the cities and County fail to adopt the revised CVFTL Impact Fee, the California Department of Fish and Game could revoke the Consistency Determination for the CVFTL Permit. Loss of the Consistency Determination would have several ramifications: • California Endangered Species Act — Projects that may "take" the lizard will be required to obtain individual permits from the California Department of Fish and Game. • Litigation on the Federal Permit — The federal lizard permit is vulnerable to litigation as the federal permit only permits "take" that is "incidental to an otherwise lawful activity'. The Center for Biological Diversity, in a letter to the Fish and Wildlife Service dated May 30, 2006, threatened litigation on the CVFTL HCP. • California Environmental Quality Act (CEQA) — Projects in potential lizard habitat may now be required to do full environmental impact reports because of the CEQA "mandatory findings of significance" provision for endangered species. As the CVFTL HCP fee mitigation area is quite large, the CEQA ramifications are potentially significant. In September, 2006, MuniFinancial prepared the Fringe-Toed Lizard Habitat Mitigation Fee Report, which established a nexus between new development and the continued need for the CVFTL Impact Fee to purchase undeveloped land in the Coachella Valley for the purpose of protecting the habitat of the CVFTL. A copy of this report also known as a Nexus Study is on file with the City Clerk. The Nexus Study determined that the existing CVFTL Impact Fee of $600 per undisturbed acre was insufficient to fund the purchase acquisition of the High Priority Acquisition Areas and recommended that this fee be increased to $2,371 per disturbed acre to ensure acquisition of the lands needed to adequately conserve CVFTL habitat_ On September 25, 2006, CVAG's Executive Committee approved the Nexus Study and approved an increase in the CVFTL Impact Fee and recommends the City act accordingly. The Nexus Study and proposed impact fee have been reviewed and accepted by the Desert Chapter of the Building Industry Association. City Council Staff Report December 6, 2006--Page 3 Fringed-Toed Lizard Mitigation Fee CEQA ANALYSIS The adoption of the Resolution increasing existing development impact fees modifies a government funding mechanism, which is not a physical change in the environment and, therefore, does not constitute a project under CEQA (14 Cal. Code of Regulations § 15378 (b) (4)). Further, this Resolution is for the purpose of modifying fees, and is not intended to approve a capital project for which separate review under CEQA will be required at the time such project is considered for approval by the City (14 Cal. Code of Regulations §15273 (a)). In view of all of the information contained in the Nexus Study and the other materials reviewed by staff, staff recommends that the City Council adopt the Resolution approving the 2006 Fringe-Toed Lizard Mitigation Fee Report and increasing the Fringe-Toed Lizard Mitigation Impact Fee imposed upon development within historical habitat as identified in the Coachella Valley Fringe-Toed Liza d Habitat"Conservation Plan. r� FISCAL IMPACT: Director Review: The current CVFTL HCP fee is $600 per disturbed acre. The revised fee determined by the Nexus Study is $2,371 per disturbed acre and is proposed to go into effect on February 1, 2007. It is estimated that approximately 1,331 acres will be developed each year generating an estimated $3,155,801 in revenue to acquire additional habitat. While the City incurs staff time in determining and collecting the CVFTL HCP fee, loss of the Consistency Determination would require significantly more staff time to review individual projects and the related impacts to the CVFFL Conservation Plan. J�C�J L. Butzl David H. Ready, i y Hagerstant Cit Ma er—Administrative Services Attachments: 1. Resolution RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS INCREASING THE FRINGE-TOED LIZARD MITIGATION FEE FOR DEVELOPMENT WITHIN HISTORICAL HABITAT AS IDENTIFIED IN THE COACHELLA VALLEY FRINGE-TOED LIZARD HABITAT CONSERVATION PLAN WHEREAS, the Cities of the Coachella Valley, County of Riverside, Coachella Valley Association of Governments, California Department of Fish and Game, U.S. Fish and Wildlife Service and The Nature Conservancy cooperated in the preparation of the Coachella Valley Fringe-Toed Lizard ("CVFTL") Habitat Conservation Plan ("MCP"), which was implemented through agreements and other documents signed by the parties (collectively the "HCP Agreement"); WHEREAS, all new development projects within certain designated historical habitat areas of the CVFTL as identified in the HCP Agreement ("designated mitigation fee area") will have direct and cumulative impacts on the CVFTL, its potential habitat or the ecological processes necessary to sustain that habitat such that mitigation is necessary in order to preserve the species; WHEREAS, all new development within the designated mitigation fee area will directly or indirectly benefit by funding a comprehensive approach to habitat mitigation; WHEREAS, the HCP Agreement has identified, as a priority, critical sand source area that must be purchased for conservation in order to adequately protect the CVFTL and its habitat; WHEREAS, each newly developed acre within the designated mitigation fee area has approximately the same proportionate impact on the loss of habitat so that each proposed acre to be disturbed is proportionate to the total cost of acquiring the priority sand source areas identified in the HCP Agreement; ' WHEREAS, the HCP Agreement provides for the acquisition and protection of designated priority sand source areas and provides that acquisition be funded primarily through a mitigation fee last established at $600 per disturbed acre, to be collected from land owners who obtain grading or building permits from the Cities or County for projects within the designated mitigation fee area; WHEREAS, substantial evidence exists that the current $600/acre fee is insufficient to acquire all priority sand source areas previously identified as necessary to insure viable preserves capable of perpetuating the species; WHEREAS, an increase in the fee is needed to insure acquisition of the priority sand source area needed to adequately conserve the CVFTL; WHEREAS, an updated Nexus Study has now been completed, a copy of which has been available for public review for more than ten (10) days; WHEREAS, the Nexus Study has considered the remaining acreage of priority sand source areas to be purchased For conservation, the projected cost of acquisition, and the anticipated amount of acreage within the designated mitigation fee area to be developed, which data demonstrates that the mitigation fee must be increased to Two Thousand Three Hundred Seventy-One Dollars ($2,371) per disturbed acre in order meet the above-referenced goals of the HCP; WHEREAS, the formula for determining the increase in the mitigation fee is calculated on a per acre basis relative to each proposed project as its size is measured in acres such that there is a reasonable relationship between the increased fee to be charged for each proposed project and the corresponding - 2 - impact of that project on the proportionate cost of conservation of priority sand source area necessary for habitat protection; WHEREAS a duly notice public hearing on the proposed fee increase was held before the City Council on December 6, 2006 as required by law; NOW, THEREFORE, be it resolved by the City Council of the City of Palm Springs that the fringe-toed lizard mitigation fee imposed through the HCP Agreement shall be increased to Two Thousand Three Hundred Seventy-One Dollars ($2,371)/disturbed acre effective February 1, 2007. ADOPTED this day of , 2006, at a regular meeting of the , by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED AS TO FORM: - 3 - i I NOTICE OF PUBLIC HEARING CITY COUNCIL CITY OF PALM SPRINGS COMPREHENSIVE FEE SCHEDULE PROPOSED CHANGE TO THE FRINGE-TOED LIZARD MITIGATION FEE NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a public hearing at its meeting of December 6, 2006. The City Council meeting begins at 6:00 p.m., in the Council Chamber at City Hall, 3200 East Tahquitz Canyon Way, Palm Springs. The purpose of this hearing is to solicit and consider public comments on the proposed change to the Fringe-Toed Lizard Mitigation Fee prior to the adoption of a Resolution revising the City's Comprehensive Fee Schedule. Under state law all fees charged by the City must be reasonably related to the actual costs of providing various public services. REVIEW OF INFORMATION: The staff report and other supporting documents regarding this matter are available for public review at the City Hall between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday. Please contact the City Clerk's Department at (760) 323-8204 if you would like to schedule an appointment to review these documents. COMMENT ON THIS APPLICATION: Response to this notice may be made verbally at the Public Hearing and/or in writing before the hearing. Written comments may be made to the City Council by letter (for mail or hand delivery) to: James Thompson, City Clerk 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 Any challenge of the proposed fee modification in court may be limited to raising only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at, or prior, to the public hearing [Government Code Section 65009(b)(2)). An opportunity will be given at said hearing for all interested persons to be heard- Questions regarding the Fringe-Toed Lizard Mitigation Fee may be directed to Troy Butzlaff, Assistant City Manager—Administrative Services, at 760-322-8336. Si necesita ayuda con esta carta, porfavor [lame a la Ciudad de Palm Springs y'puede- hablar con Nadine Fieger telefono (760) 323-8245. Aa /Iormes Thompson, City Clerk I City of balm Springs + Office of the i Clerk 32(l0 I:.Tihquia Canyon Way ' Palm Springs,California 92262 C �P Tel:(760) 323-8201 • Pax: (760) 322-8332 • Web. www.ci.pulm-springs ca.us ' 41rotzN AFFIDAVIT OF MAILING NOTICES I, the undersigned City Clerk of the City of Palm Springs, California, do hereby certify that a copy of the Notice of Public Hearing, to consider a change to the Fringe-Toed Lizard Mitigation Fee prior to the adoption of a resolution revising the City's Comprehensive Fee Schedule, was mailed to each and every person set forth on the attached list on the 20th day of November, 2006, in a sealed envelope, with postage prepaid, and depositing same in the U.S. Mail at Palm Springs, California. (17 notices mailed) I declare under penalty of perjury that the foregoing is true and correct. Dated at Palm Springs, California, this 20th day of November, 2006. tAM EAMESTHOMPSON City Clerk /kdh HAUSER6\C-CLK\Hearing NoticesWAMOVit-FingeToedLizard 12.06-06.doo Pose Office Boa 2743 0 Palm Springs, California 92263-2743 NEIGHBORHOOD COALITION REPS ' MS APRIL HILDNER MR TIM HOHMEIER ' (fAHQUITZ RIVERS ESTATES) (DEEPWELL ESTATES) 241 EAST MESQUITE AVENUE 1387 CALLE DE MARIA PALM SPRINGS CA 92264 PALM SPRINGS CA 92264 MS ROXANN FLOSS MR JOHN HANSEN MS MALLIKA ALBERT (BEL DESIERTO NEIGHBORHOOD) (WARM SANDS NEIGHBORHOOD) (CHINO CANYON ORGANIZATION) 930 CHIA ROAD PO BOX 252 2241 NORTH LEONARD ROAD - PALM SPRINGS CA 92262 PALM SPRINGS CA 92263 PALM SPRINGS CA 92262 M5 DIANE AHLSTROM MR BOB MAHLOWITZ MS PAULA AUBURN ' (MOVIE COLONY NEIGHBORHOOD) (SUNMOR NEIGHBORHOOD GROUP) (SUNRISE/VISTA CHINO AREA) 475 VALMONTE SUR 246 NORTH SYBIL ROAD 1369 CAMPEON CIRCLE PALM SPRINGS CA 92262 PALM SPRINGS CA 92262 PALM SPRINGS CA 92262 MR BOB DICKINSON MR BILL SCOTT MR SEIMA MOLOI VISTA LAS PALMAS HOMEOWNERS (OLD LAS PALMAS NEIGHBORHOOD) (DESERT HIGHLAND GATEWAY EST) 755 WEST CRESCENT DRIVE 540 VIA LOLA 359 WEST SUNVIEW AVENUE PALM SPRINGS CA 92262 PALM SPRINGS CA 92262 PALM SPRINGS CA 92262-2459 MS LAURI AYLAIAN MR PETE MORUZZI HISTORIC TENNIS CLUB ORG MODCOM AND PALM SPRINGS MODERN COMMITTEE 377 WEST BARISTO ROAD HISTORIC SITE REP cJ-0 PO BOX 4738 PALM SPRINGS CA 92262 PALM SPRINGS CA 92263-4738 CITY OF PALM SPRINGS CASE PLANNING SERVICES DEPARTMENT MRS.JOANNE BRUGGEMANS ATTN SECRETARY 506 W-SANTA CATALINA ROAD VERIFICATION NOTICE�u PO BOX 2743 PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92263-2743 MS MARGARET PARK AGUA CALIENTE BAND OF CAHUILLA AGUA CALIENTE BAND OF CAHUILLA INDIANS INDIANS 777 E TAHQUITZ CANYON WAY,STE. 3 PALM SPRINGS CA 92262 Building Industry Assoc. Desert Chapter 77-570 Springfield Ln. Ste. E Palm Desert, CA 92211 PROOF OF PUBLICATION This is space for County Clerks Piling Stamp (2015.5.C.C.P) STATE OF CALIFORNIA County of Riverside ' 1 am a citizen of the United States and a resident of Proof of Publication of the County aforesaid;T am over the age of eighteen --"---------..------..------------- ycars,and not a party to or interested in the above-entitled matter.I am the principal clerk of a ___ printer of the,DESERT SUN PUBLISHING No 3706 COMPANY a newspaper of general circulation, NOTICE OF PUBLIC HEARING printed and published in (lie city Of Palm Springs, CITY COUNCIL _ County of Riverside,and which newspaper has been CITY OF PALM SPRINGS adjudged a newspaper of general circulation by the D PROPOSFp cANor TO THELC Superior Court of the County of Riverside,State of FRINGE-TOED LIZARD MITIGATION FEE California under the dale Of March 24,1988.Case NOTICE IS HEREBY GIVEN thst Shc City.Councl of the City of Palm Springs, California, will hold a Number 19123G;that the notice,of which the public hearing at ]is mLctin of December 6, annexed is ll printed co set in type not smaller 2006. The City Courici meeting begins at 6:QQ P PY( Yp p m. In the Council Chamb+r at City Hall, 3200 than non pariel,has been published in each regular East Tahquitz Canyon wary, Palm Springs and entire issue of said newspaper and not in any The purpose eT this hearing is to sollclt and con-. -Ider public comments on the propok'cd change supplement thereof on the following dates,to wit: to thu Fringe-Toed Lizard Mltlgaclon Fee prior O the adoption of a Resolution revising mu City's CompreYwnsive Fee 5chodule. Under::tote law all NoVembel.21 er fees charged by She City must be reasonably ru- ,200G latoo TO the artual costs of providing various pub- i lie services REVIEW OF INFORMATION;The staff report and other supp❑orting documents regarding this matter .--^---...........—.............................— are available for public review at the Gity Hall be. All In the year 200G Swoon the hour;•of a:00 a.m,and 5:00 p.In„Mon- Y day through Friday, Please conl)ct the City Clerk s Deparcmont at (760) 223-8204 11 ycu would Ilka to schedule an appointment to review I certify(or declare)under penalty of perjury that the these documents. foregoing is true and correct, COMMENT ON THIS APPLICATION- Re•:❑onsa to this notice may be made verbally at the Public He and/or In writing before the hearingg.Writ- Dated at Palm Springs,California this----21...----day by ie om'nenluev (far maJI orbn hand thee ily Luncll, James Thompson City ClerK"— Ol------NUVI' ----- -------- --,200G a200 East Tahquitz Canyyon Way w aim Spnng�4C,4,22262% '-- I 'Any challenge of the proposed Yee modlflcailon in - court may be limited to rating only those is.:uas raised al the public hearing described In this no- - An oOr in written cerrespondence dellvared o the ee, h.a•.� -�+-....— ------ ----------.--.. Ci Cler Codaaor prior t650096)bli hearing GOv- emmenS on Sire - `+ Interested persons will be given rd said hearing for all Interested persons m izard.Mid Cuestlo a regard- ing r U ins the Frmgr%l3Lr Lizard.Midgatloq Foe may be directed ra ve rvJce ff,A 760- 2 CIN Manager- "r- � �� _Atlminittrative arvlces at 7G0-322-e a6. Si necealta ayuda con esta carte,porfavor Ilalni,a la Ciudad du Palm Springs yy puede hablar con Nadmc Finger ieletonc pG0) 323-6245. `�• �'I, Jame: hompson, City u e k \� Published: 11/21/2006 — FRINGE-TOED LIZARD HABITAT MITIGATION FEE FINAL AS APPROVED BY THE CVAGEXECUTIVE CONMTTEE SEPTEMBER 25, 2006 COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS z aMunffinandal Oakland Office Corporate Office Other Regional Offices 1700 Broadway 27368 Via Industria Lancaster, CA 6`^ Floor Suite 110 Sacramento, CA Oakland, CA 94612 Temecula, CA 92590 San Diego, CA Tel: (510) 832-0899 Tel: (800) 755-MUNI (6864) Phoenix, AZ Fax: (510) 832-0898 Fax: (909) 587-3510 Bellevue, WA Lake Alfred, FL www.muni.com TABL.E OF CONTE114TS INTRODUCTION.....-................ ......... .......-................ .......................... COACHELLA VALLEY FRINGE-TOED LIZARD MITIGATION FEE AREA............ 3 NEED FOR HABITAT CONSERVATION ....................................................... 6 COST OF HABITAT ACQUISITION ............................................................. 8 COST ALLOCATION AND FEE SCHEDULE................................................ 10 MITIGATION FEE ACT FINDINGS............................................................ 11 Purpose of Fee 11 Use of Fee Revenues 11 Benefit Relationship 12 Burden Relationship 12 Proportionality 13 MMuniFinan6al i INTRODUCTION This study develops a nexus between new development and the need for a fee to purchase undeveloped land in the Coachella Valley for the purposes of protecting the habitat of the Coachella Valley Fringe-toed Lizard (CVFTL). In 1986, a Coachella Valley Fringe-toed Lizard Habitat Conservation Plan (HCP) was approved and resulted in the issuance of a federal Endangered Species Act Section 10(a) incidental take permit ("Permit's by the U.S. Fish and Wildlife Service (USFWS). The Permit enabled the participating cities and Riverside County to authorize take of CVFTL habitat resulting from land development and other activities covered by the HCP.1 The California Department of Fish and Game (CDFG) did not sign the HCP or aurhorize incidental take of CVFTL associated with the HCP because a pemrirting process had not been established under California Endangered Species Act (CESA) at the time the HCP was developed.Regardless,CDFG participated in implementation of the HCP. The cities and the County entered a Memorandum of Understanding wirh USFWS and CDFG on March 21, 2001 (2001 MOLT) whereby CDFG made a detemunation finding that the FWS permit in combination with the mitigation provided in the Memorandum of Understanding is consistent with CESA 2 The parties to the 2001 MOU agreed that the CVFTL can best be protected by inclusion of the species in a Multiple Species Habitat Conservation Plan (MSHCP). The MOU included certain measures to be implemented on an interim basis to protect the CVFTL until an MSIICP is in place. The MOU, as subsequently amended, expired June 30,2006, The Coachella Valley Association of Governments (CVAG) prepared an MSHCP but it was not completed because the City of Desert Hot Springs did not approve it.The cities and the County desire to maintain the Permit for the CVFTL in effect until the revised MSHCP excluding Desert Hot Springs can be prepared and incidental take pemuts issued by the FWS and CDFG. CDFG informed the cities and the County through CVAG that it would extend its consistency finding for the CVFTL Permit under certain conditions. One such condition was that the cities and the County adopt a revised CVFTL mitigation fee based on a nex--U5 study. A revised fee is appropriate because USFWS and CDFG have previously expressed concern with the adequacy of funding for the original CVFTL HCP. The MSIICP is intended to address those concerns. To maintain the Permit in effect until completion of the MSHCP, a new fee is needed to ensure acquisition of the lands needed to adequately conserve CVFTL habitat Th s report documents the legal and policy basis to support adoption of the revised CVFTL habitat mitigation fee by the cities and the County of Riverside. The report is intended to satisfy the 1 Pa 6cipatiug cities:Palm Springs,Cathedral City,Rancho Mirage,Palm Desed,Indian Wcus,La Quipta,Indo MCI Coachella. 2 Determination pursuant to Section 2080.1 of the Fish and Game Code. &MuniFnanciel 1 Fnrge•medLz7T t Sia6itatMligailon Fee C=bella ValleyAssmi ion of Gm)e menrs requirements of Mattga lon.Fee Act(Cahfornia Government Code 66000 et req), the statutory authority that governs the development and implementation of impact fees in California. RMuniFinancial 2 COACHELLW VALLEY FRINGE-TOED UZAR® MmrmAT iON FEE AREA The CVFTL mitigation fee area was delineated in the 1986 HCP as the blowsand ecosystem in the historic range of the CVFTL. As stated in the HCP,`Because the CVFTL. depends on continuance of the natural blowsand process, conservadon of the lizard requires that its blowsand habitat be conserved: nor only the sandy areas actually occupied by the lizard, but sand source areas as well." The HCP stated that as of 1986, "about 81,500 acres of the Valley are undisturbed occupiable habitat". Of this, "the fee assessment area will apply to about 70,000 acres of historic CVFTL habitat., of which 51,000 acres will be developable without any restriction." Since 1986, a significant portion of this area, approximately 39,260 acres, has developed and paid the fee established in conjunction with the HCP. The entire mitigation fee area is shown in Figure 1 The acreage to which the CVFTL Mitigation Fee would be applied is 13,477 acres. This was calculated as follows: • CVAG identified all privately-owned vacant parcels in the CVFTL fee area outside the areas proposed for conservation under the MSHCP using aerial photo analysis.The date of the aerial photo is September 15,2005. • Based on GIS analysis, CVAG staff estimates that ten percent of private vacant land within MSHCP Conservation Areas, net of acreage to be acquired for habitat (see next section),will be developed. • Where general plan designations limit development to one unit per five acres or a lesser density, it was assumed based on historical development patterns that the fee paid would be based on 0.5 acres of a parcel actually being disturbed. This was factored into the calculation of the acres on which the fee would be collected. • The acreage was further adjusted to account for development/disturbance in the CVFTL fee area since the date of the atrial photo. This was derived from the fee payment records maintained by CNLIVI from the date of the aerial photo. Table 1 displays the calculation of the remaining acres to be developed within the mitigation fce area. &MuniFnancial 3 t•� r� _ f ,' �„`s _qT7�.�iy�; is _I L. 'aC' s<r�_ •b ' Y 16 'r F7inge-coed Li,ard habitat Mikgakon Fee CeachcAa VaAey,4ssvoaGon of GovennnenLv Table 1: Vacant Land To Be Developed Acres Outiside MSHCP Conservaati0n Areas Residential(a 1 unit per 5 acres) and all nonresidential 12,617 Residential (<= 1 unit per 5 acres)1 1,012 Inside MSHCP Conservaation Areas 1.570 Subtotal-Projected Development 15,199 Acres developed September 2005 to September 2006 (1 722) Remaining Acres To Be Developed 13,477 Note!Development potential on vancant land based on General Plan designations and aenal photography as of September 15,2005. Based on disturbance of 0.5 acres for each parcel. `Based on 10 percent of vacant private land designated for development. Sources-Coachella Valley Association of Governments;MuniFnanoial, �MunlFnanclal _ 5 NEED rOR I— AEuTAT CONSERVATION The HCP noted that nearly half of the 81,500 acres of habitat that could be occupied by the CVF1L "is already undergoing irreversible degradation due ro man's interference with the wind blown sand transport system." In the late 1990s, USFWS and CDFG noted concerns regarding the adequacy of the HCP preserves for the preservation of the CVTTL. Certain sand source and sand transport areas had either not been adequately delineated in the 1986 HCP or were being threatened with more intense development than anticipated. As a result, the 2001 MOLT identified additional sand source areas in the Willow Hole, and Thousand Palms areas to be conserved through an interim acquisition program and, in the long-term, through inclusion of the CVFTL in the MSHCP. At the same time, the CVFTL HCP was amended to remove these high priority acquisition areas from the area covered by the CVFTL Pemvt. Figure 2 shows these two high priority acquisition areas. The total of undeveloped private land in these areas is approximately 2,260 acres, comprised of 930 acres in the Thousand Palms area and 1,330 acres in die Willow Hole area (acres rounded to the nearest ten). lilluniFnartcinl 6 Q {� W o S z � - a � z Z 6 F ■ 2 24 4 _ E' 74Y HSI'!Ol `� - _' -_' � - F - - _ x ti _ ' • yam_. CVA rr RAMON RO l E The cost to acquire the high priority acquisition areas in the Willow Hole and Thousand Palms areas is based on the following factors: + Land values (purchase price for these acres) are based on the 2005 Market Study prepared for the MSHCP (A Market Study of LRnd Valuer,Related to Severa/Arear of Prospeacce Acgaiddon, Associated with d)e Coachella Valley Mulllple Species Habitat Conservation Plan, Scarcella,July 2005). The 2005 values have been increased by a 3%inflation factor to provide 2006 values.The total land value is$31,170,100. Implementation costs which include improvements, appraisals, site inspections, escrow fees, and other costs incurred in the acquisition of the land, maintenance of habitat, and implementation of the fee. The implementation costs are estimated to be 2.5 percent of the total land costs based on experience with the CVFTL mitigation fee program to date. Should the actual costs differ from 2.5 percent the total land costs,the fee should be revised. Table 2 on the following page shows land costs based on the 2005 Market Study. Total costs for land acquisition are based on low medium and high values estimated for each area and the percent of total acres likely to be acquired at each cost level. Total costs are inflated three percent to estimate in today's (2006) dollars. Table 3 shows the total costs to be funded by the mitigation fee including implementation costs.. �INunil financial 8 .Fringe•toed Lizard FIn1nWtMi4ation Fee Coachella Va1/cy-4rrodation of Coycmnxntr Table 2: Market Value of Habitat Conservation Land Acquisition Low-Range Mid-Range High-Range Priority Area Per-Acre Per Acre Per Acre Total willow Hole Total Acres(A). 1.330 1,330 1,330 Percent of Total Acres(13); 10% 70% 20% Acres(C=A x B); 133 931 266 Average cost par acre(D); $ 2,500 $ 11,250 $ 20,000 Cost(E=C x D): $ 332,500 $ 10,473,750 $ 5,320,000 $ 16,126.250 Thousand Palms Total Acres(A); 930 930 930 Percent of Total Acres(a); 50-A 413% 55 6, Awes(C=Ax 8), 465 4165 46,5 I Average cost per acre(D): $ 2,000 $ 26,000 $ 50.000 Cost(E=C%n); $ 030,000 s 10 881,000 $ 2,325,000 $ 14.136 OGO Market Value of Habitat Conservation Land(2005) $ 30,262,250 Inflation Factor(2005 to 2006) 1 03 Market Value of Habitat Conservabon Land(2006) $ 31,170,100 Soun;�A Mwket Sludyor Land Values,RNekd b Several Areas o1 Pra:pcctrve Aequls�Gon,Acaoc nicd with the Coachella VaIHy Malbpk Spryjos Na6rlat eansorvatlm Plan Scamoly„wlY 2005 MumWnanyal. Table 3: Total Cost of Habitat Acquisition Average Unit Inventory Cost Value Land 2,260 acres 5 13,800 $ 31,170,100 2.5% Implementation Costs' NA NA 779,300 Total 31,949,400 Implementation costs include land acquisition costs and improvement costs, Sources:Coachella Valley Association of Governments;Table 2; MuniFinancial. Muni9nancial 9 Cos-r ALLocAnON AND FEE 5CHEDU4,.E The cost of the acquisition program is allocated to all the potentially developable land in the CVFTL rr tigacion fee area as calculated in Table 1 and shown in Figure.2, As previously described, the total disturbed acreage on which the fee would be imposed is 13,477 acres. Spreading the total cost equally across this acreage results in a per acre fee of$2,371. If this fee were to be in place for more than one year, it is recommended that it be adjusted annually for inflation. The CVFn fee is expected to be replaced by the MSHCP fee when the MSMCP is implemented. The MSHCP fee would provide mitigation for the CVFrL and all other covered species and natural communities included in the MSHCP. Table 4: Fee Calculation Cost of habitat acquisition $31,949,400 Acreage to be developed 13 477 IFee per acre of new development $ 2,371 Sources:Tables 1 and 3;MuniFnancial. MuniRn�clal 10 MITIGATION FEE AOT FINDINGS Fees are assessed and typically paid when a building permit is issued and imposed on new development projects by local agencies responsible for regulating land use (cities and counties). To guide the imposition of facilities fees, the California State Legislature adopted the Mitegadon Fee Act with Assembly Bill 1600 in 1987 and subsequent amendments. The Mitzgadon Fee Act, contained in Cal#'ornia Gozernmrent Code 5§66000 — 66025, establishes requirements on local agencies for the imposition and administration of fees. The Act requires local agencies to document five statutory findings when adopting fees. i The five findings in the An, required for adoption of the maximum justified fees documented in this report are: 1) Purpose of fee, 2) Use of fee Revenues, 3) Benefit Relationship, 4) Burden Relationship,and 5) Propordonality. They are each discussed below and are supported throughout the rest of this report. PURPOSE OF FEE + Identify the purpose of the fee (966001(a)(1) of the Act). The purpose of the CVFTL fee is to provide a funding source from new development for the acquisition of habitat and related implementation costs to mitigate development impacts to the CVFTL. The fee advances a legitimate public interest by funding habitat conservation necessary to keep the CVFTL Permit in effect until the MSIICP can be completed. USE OF FEE REVENUES Identib,the we to which the fees will be put. If the use fs financingfadhties, the facilities shall be identified That identifacation may, but need not,be made by reference to a capital impraaerne vt lam as specified in 5165403 or,f66002,may be made in apphcabk general or.rpecificplan reguinmentr, ormay be made in atberpub&documents that identify the faczlitses for which the fees are chasged (§66001(a)(2)of the Act). The revenue from the CVFTL fee will be used to fund die acquisition of land for the conservation of CVFTL habitat, and will facilitate public and private project compliance with federal and state endangered species laws. The revenue would provide most of the funding necessary to acquire an estimated 2,260 acres of habitat, and pay for related program implementation costs. This habitat acquisition program mitigates the loss of CVFTL individuals and habitat caused by all development in the lusroric habitat of the species. The original CVFTL HCP, supplemented by the 2001 MOU among the cities, the County, USFWS, CDFG, and the Center for Natural Lands Management (CNLM) represents the public documents referenced in ere statute that adequately identify the amount, type, and general location of land to be acquired with CVFTL fees. 'MuniFnandal 11 Fr.'nge•Wcd,[iZaftllialr.'lat d4iligatton Fec Coachella Va4 y7,4 todadon of Gmemmcmr The agencies responsible for implementing the CVFTL fee will restrict the use of fee revenues to one-time costs associated with the habitat acquisition program. These costs include: Purchase price of acquired land. • Implementation costs including, but not lirmred to- acquisition-related costs, appraisals, escrow fees, hazardous materials site inspections and land improvements such as fencing to protect habitat from human impacts. BENEFIT RELATIONSHIP + Determine the rza anabie relationship between the fear'use and the type of deuelopmentpnject on which the fees are it pared(§66001(a)(3) of the Act)_ All new development within the CVFTL mitigation fee area will directly or indirectly benefit from the CVFTL fee by funding a comprehensive approach to habitat mitigation. The approximately 2,260 acres to be acquired in part with fee revenues were identified as high priority acquisition areas in the 2001 MOU to protect the CVFTL until the implementation of the MSHCP. The acquisition of these lands will mitigate for the impacts on CVFTL of all new development and associated public infrastructure projects within the CVFTL mitigation fee area during the term of the CVFTL Permit. Each type of project leads to the elimination of habitat. Thus, there is a reasonable relationship between the use of CVFTL fee revenue and all types of new residential and nonresidential development that will pay the fee. The use of CVFTL fee revenues is described in the section of this report tided Cost ofHabitdt .Acquismon. BURDEN RELATILIhlSHIP Determine the rearonable rekthbn rhip between the need for the pubBe f a'Mes and the der of denelapment on tuhich the fees are imposed(§I66001(a)(4)of the Act). All vacanr lands in the historic habitat of the CVPTL, as defined in the CVFTL NCP, including vacant lands or partially vacant lands in urban areas, represent currenr or potential habitat for die CVFTL. All new development projects on vacanr or partially vacant lands regardless of location will have direct and emulative impacts on the CVFTL, its potential habitat, or the ecological processes necessary to sustain tbar habitat. New developmenr also causes a need for, and benefits from, die installation of public infrastructure. Without new development,no further habitat conservation to mitigate for development impacts would be needed. Therefore, nccre is a reasonable relationship between the need for habitar conservation and all types of residential and nonresidential development throughout the CVFTL historic habitat area thar will pay the fee Habitat needs are described in the section of this report rided Need for Habitat Conservadon. gMuniFn2ncial 12 Lne&,torn'J- ,Zard Jlabntat Mitigation Fee Coachella ValteyAssodaaon of Government r PPOPOR-ri©NALITu' • Determine how there is a reasonable relationship between the fees amount and the cost of the facilities orportion of thefadSafs aanbutable to the development on which the fee it imposed (§60001(b) of the Act). Each newly developed acre has approximately the same proportionate impact by causing the direct, indirect, or cumulative, loss of an acre of potential habitat for CVFTT,. For each developed acre, another acre must be acquired in the habitat conservation area to mitigate the effects of that, development The CVFTL fee is calculated on a per acre basis and the total fee for a specific project is based on its size as measured in acres. Thus there is a reasonable relationship between the fee for a specific development project and the direct, indirect, or cumulative impact of that project on the need for habitat protection_ See the Section of th s report titled Coachella 1/alley Fringe-Toed Lizard Mikgatdon Fee Area for a description of the amount of new development that is projected. See the section of this report titled Cost Allocation and Fee Schedule for a presentation of the mitigation fee schedule. MuniFncrcial 13