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APPROVE MOSSDALE TRACT AREA REGIONAL FLOOD PROTECTION DEVELOPMENT IMPACT FEE AND COLLECTION AGREEMENT
recommended action
RECOMMENDATION
It is recommendation that City Council adopt a Resolution approving the following:
1. The Mossdale Tract Area Regional Urban Level of Flood Protection Development Impact Fee.
2. An Agreement for collection of the Mossdale Tract Area Regional Urban Level of Flood Protection Development Impact Fee between San Joaquin Area Flood Control Agency and its member agencies, including the City of Stockton.
3. An Amendment to the FY 2018-19 Fee Schedule to add the Mossdale Tract Area Regional Flood Protection Development Impact Fee (Mossdale Tract Regional Flood Impact Fee) for residential, commercial and industrial; to include an administration fee.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.
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Summary
Adoption of the proposed Resolution will enable the City to collect San Joaquin Area Flood Control Agency (SJAFCA) regional flood development impact fee for development projects within the Mossdale Tract Area. The Mossdale Tract is located on the south end of the City of Stockton (inclusive of the Weston Ranch area), west of Interstate 5 and extends south to include significant portions of the Cities of Lathrop and Manteca and San Joaquin County (See Attachment A - Mossdale Tract Map). According to the State’s 200-year flood protection program, commonly known as SB 5 (Central Valley Flood Protection Act of 2008, Ch. 364, Stats 2007), some lands within Mossdale Tract are in a deeper floodplain where flood waters could exceed 10 feet in depth. SB 5 requires that certain types of new development not be approved unless local planning agencies make findings that new development will have 200-year protection.
To make the levee system improvements necessary to achieve 200-year flood protection, the cities of Stockton, Lathrop, and Manteca, entered into a Joint Exercise of Powers Agreement with the County of San Joaquin and the San Joaquin Area Flood Control Agency (SJAFCA). The SJAFCA serves as the lead agency to deliver regional flood control projects, and developed project financing and construction plans. Based on these plans, City Council was able to approve adequate progress findings on September 28, 2018. The adequate progress findings for the Mossdale Tract levee system (Resolution No. 2018-09-18-1105) allow the Community Development Department to approve subsequent discretionary planning applications and ministerial building permits for new residential construction within that portion of the City of Stockton.
On November 8, 2018, the SJAFCA Board approved a Mossdale Tract Area Regional Urban Level of Flood Protection Development Impact Fee to fund improvements to the flood control system. The SJAFCA also adopted a collection agreement that defines the responsibility of local member agencies to collect the impact fee. Staff recommends that Council approve the fee and collection agreement to continue making progress on the 200-year levee system improvements.
DISCUSSION
Background
On May 24, 2016, the City Council approved an amendment to the Stockton Municipal Code to comply with a state mandate for new development to have 200-year flood protection (Central Valley Flood Protection Act of 2008, Chp. 364, Stats 2007). This regulation is commonly referred to as Senate Bill (SB) 5 and became effective on July 2, 2016. Attachment B contains an overview of SB 5, and the City’s process for complying with the regulation including the various findings that can be made before approving development projects.
The Mossdale Tract levee system is operated and maintained by Reclamation District 17 and currently protects the tract area to the 100-year level of protection according to FEMA standards, which correlates to standards in the National Flood Insurance Program. Based on the 200-year floodplain map, the Mossdale Tract may be subject to flood depths of 10 feet or greater (Attachment C - 200-Year Floodplain Map).
The City of Stockton’s portion of the tract is predominantly developed and consists of approximately 6,500 homes and a neighborhood commercial shopping center constructed within the Weston Ranch planned development. Approximately 190 acres in the City limits remain undeveloped. Some of this area has city approval to develop but has been postponed due to the 200-year flood protection requirements.
The cities of Lathrop and Manteca have substantially more active development occurring in Mossdale Tract, which would have been impaired by the 200-year flood regulation when it became effective on July 2, 2016. However, the cities and their concerned developers jointly funded studies (in excess of $3 million) to determine the necessary improvements to the Mossdale Tract levee system to achieve 200-year flood protection. A financial analysis was prepared to identify how the improvements could be financed through a combination of Federal, State and local funds. Local funds would be derived from implementation of a regional flood impact fee, formation of an assessment district and other potential funding mechanisms to be explored.
The SJAFCA is working to advance preliminary designs for the 200-year improvements to the Mossdale Tract levee system for submittal to the necessary state and federal agencies to secure funding and permit approvals. In January 2018, Stockton and the local Cities and County agreed to expand SJAFCA’s joint powers board and responsibilities to include Mossdale Tract (Motion 2018-1-23-1106) to establish one regional voice when interacting with state and federal agencies. As a result, the SJAFCA is now the lead agency in pursuing financing and preliminary design and permit approvals. The SJAFCA also assumed responsibility for preparing the annual adequate progress report on behalf of its member agencies.
On May 15, 2018, City Council authorized an interim funding agreement with SJAFCA and its member agencies (Motion 2018-05-15-1109). Under the Agreement, all member agencies provided funding beginning with loans of $65,000 per agency for the remainder of the FY 2017-18. In addition, for FY 2018-19, the member agencies agreed to provide additional loans not to exceed $300,000 per agency if needed, which could be offset by impact fees or other funds. Interim funding would allow SJAFCA agency staff and consultants to advance the Mossdale Project through FY 2018-19. The SJAFCA’s Mossdale Project Scope of Work consists of the following activities:
1. Efforts that directly relate to maintaining and supporting adequate progress findings, including preparation of an annual update to the Urban Level of Flood Protection Adequate Progress Report to be made publicly available and submitted to the Central Valley Flood Protection Board by SJAFCA.
2. Development, establishment, and administration of funding for the Mossdale Project improvements, including:
• Regional Levee Impact Fee Program;
• Assessment District Overlay;
• Enhanced Infrastructure Financing District development efforts; and
• Support and coordination activities credited as local cost-share that advance State and Federal funding for the Project.
On September 18, 2018, City Council approved a finding that adequate progress is being made to construct 200-year flood protection improvements to the Mossdale Tract levee system (Resolution No. 2018-09-18-1105). This regional finding can be relied upon to approve subsequent discretionary planning applications and ministerial building permits for new residential construction within that portion of the City of Stockton.
Present Situation
To maintain a finding of adequate progress, the SJAFCA and its members agencies need to advance the 200-year flood protection improvements for the Mossdale Tract. A critical step to advancing the improvements is to establish a regional flood development impact fee to help fund the levee system improvements. The SJAFCA hired a consultant and prepared an impact fee nexus analysis study in conformance with California Government Code Section 66000 et. seq. (Mitigation Fee Act). The nexus study was prepared in a manner that establishes an equitable and fair share impact fee that can be imposed on all planned development projects in the Mossdale Tract basin that are to be provided urban level flood protection. In general, when the SJAFCA makes findings required by the Mitigation Fee Act, it establishes a “nexus” between the impacts of the development project and the costs associated with the construction of public facilities to mitigate the impacts.
The nexus study documents the following findings required by the Mitigation Fee Act:
• Identify the purpose of the fee.
• Identify the use of the fee.
• Determine how there is a reasonable relationship between the use of the fee and the type of development project on which the fee is imposed.
• Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.
• Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility (or portion of the public facility) attributable to the development project on which the fee is imposed.
On November 8, 2018, the SJAFCA Board approved the final Nexus Study with required findings and the Mossdale Tract Area Regional Urban Level of Flood Protection Development Impact Fee (Mossdale Tract Regional Flood Impact Fee) and a collection agreement for its member local agencies to administer fee collection (Attachment D - SJAFCA Resolution). The following summarizes the proposed initial fee rates to commence collection on January 8, 2019 documented within the Nexus Study.
|
LAND USE |
PROPOSED REGIONAL FEE RATES (PER GROSS DEVELOPABLE ACRE) |
|
Single Family Residential |
$18,692 |
|
Multi-family Residential |
$17,021 |
|
Commercial |
$17,702 |
|
Industrial |
$14,729 |
The SJAFCA requests that local member agencies enter into a collection agreement. Fees collected by the local agencies would be transferred to the SJAFCA on a bi-annual basis. The collection agreement lays out the framework for the method of fee collection upon the issuance of building permits for new construction and addresses crediting and exempt activities. The agreement specifies that three percent of the fee would be retained by each of the member agencies for administrative costs. An amendment to the FY 2018-19 Fee Schedule is proposed to add the Mossdale Flood Protection Impact Fee and the administrative cost to the current schedule.
PUBLIC NOTICE
A notice of this public hearing was published in The Record on November 20, 2018.
FINANCIAL SUMMARY
While there is no immediate financial impact to the City as a result of the proposed Council action to approve the Mossdale Flood Protection Fee, the fees are being established for consistency in the fee structure among all participating agencies under the SJAFCA. Based on future development, when collected, this Pass-Through Fee will be deposited into Account 048-0000-341, and reimbursed to the SJAFCA on a biannual basis. The cost to administer fee collection and transfer fees to the SJAFCA will be funded by retaining three percent of the fee. The FY 2018-19 Fee Schedule will be amended accordingly, if approved.
Attachment A - Mossdale Tract Map
Attachment B - SB 5 Overview
Attachment C - 200-Year Floodplain Map
Attachment D - SJAFCA Resolution