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HomeMy WebLinkAboutResolution 61-25 with Exhibit ARESOLUTION 61-25 RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS ADOPTING THE 2024 PATHWAY FEE NEXUS STUDY AND THE PROPOSED FY26 PATHWAY IMPACT FEE UPDATE IN ACCORDANCE WITH THE MITIGATION FEE ACT WHEREAS, the Town of Los Altos Hills established a pathway fee in 1996 and created a Pathway Fund for collected fees; and WHEREAS, on October 17, 2019, the Town adopted Ordinance 584 amending Section 3-3.303, Section 9-1.1112, and Article 6 of Chapter 2, Title 10 of the Municipal Code concerning the pathway fee and pathway fund; and WHEREAS, Article 6 "Pathway Dedication, Maintenance and Improvement" of Chapter 2 "Site Development," Title 10 "Zoning and Site Development" of the Los Altos Hills Municipal Code implements the Master Pathway Plan of the General Plan of the Town; and WHEREAS, the current Pathway Development Impact Fee, adopted in 2019 through a nexus study, consists of flat fees of $10,943 for new residences and $3,826 for major additions of 900 square feet or more, including barns and stables; and WHEREAS, on May 17, 2023, the Council directed staff to initiate a Pathway Impact Fee Study as recommended by the Pathways Committee, with the understanding that pathway construction costs have significantly increased, and the current pathway fee structure is not sufficient to sustain pathway construction needs for the Town; and WHEREAS, Matrix Consulting Group was hired by the Town to prepare the 2024 Pathway Fee Nexus Study, which recommended updates to the pathway development impact fee based on development square footage of habitable floor area; and WHEREAS, different options to assess the pathway fee were evaluated, but the focus was to update the pathway development impact fee assessed on square footage of development due to a new nexus analysis requirement per Assembly Bill (AB) 602; and WHEREAS, per AB602, a unit pathway development impact based on square footage of development was established by dividing the total estimated capital cost of the existing 85.88 miles of Town pathways ($1,060,659) by the estimated number of Town parcels (3,151 parcels), then dividing that further by an average size of developments in the Town (5,269 square feet), which resulted in a pathway impact fee of $5.49 per square foot of habitable and barn or stable floor area of developments; and WHEREAS, staff has presented the 2024 Pathway Fee Nexus Study and the pathway impact fee update at the following duly noticed public meetings on June 3, 2024 to the Finance and Investment Committee, on June 24, 2024 to the Pathways Committee, and on October 7, 2024 to the Finance and Investment Committee again, during when both committee recommended the nexus study and the pathway impact fee update for approval by Council; and WHEREAS, on March 12, 2025, the Planning Commission held a duly noticed public hearing at which time all interested parties were provided an opportunity to give input and participate in the public process to consider the proposed the General Plan Pathway Element and Zoning and Site Development Ordinance amendments related to the 2025 pathway development impact fee update, wherein the Planning Commission recommended that the City Council make no amendments to RESOLUTION 61-25 11 P a g e the General Plan and Town Ordinance for the pathway fee update and recommended that the City Council consider a pathway in -lieu fee option for property owners; and WHEREAS, on April 17, 2025, the City Council held a duly noticed public hearing at which time all interested parties were provided an opportunity to give input and participate in the public process to consider the 2025 pathway in -lieu fee as suggested by the Planning Commission and the proposed Zoning and Site Development Ordinance amendments, wherein City Council directed staff to present the proposed pathway fee update and ordinance amendments to the Finance and Investment Committee, the Pathway Committee, and the Planning Commission for additional review and input; and WHEREAS, after further evaluation of the pathway impact fee and consultation with the City Attorney, the pathway fee that waives the impact fee when a developer constructs the pathway would need to be referred to as a pathway impact fee by legal definition; and WHEREAS, the latest proposal for the FY26 Pathway Impact Fee is as follows: Pathway Impact Pee – New single-family homes or major additions 900 square feet or more of "habitable" and barn/stable floor areas (cumulative within ten years) shall be assessed a pathway impact fee based on the 2024 Pathway Fee Nexus Study. The Pathway Impact Fee shall be set at $5.49 per square foot of "habitable" and barn/stable floor areas per the proposed Planning/Building Fee Schedule update included in this Resolution ("Exhibit A") and as shown below. Habitable floor area includes the total building floor area, excluding patio and garage spaces. The fee rate is subject to annual adjustment based on the Engineering News -Record (ENR) Construction Cost Index (CCI). ® Pathway Fees Paid - If a parcel has previously paid into the pathway system or constructed and dedicated pathways to the Town, the fee applies only to the net increase in habitable and barn/stable floor areas. For example, if an existing property with a 5,000 -square -foot home has already paid into the pathway system, a project adding 1,000 square feet of habitable floor—or rebuilding the home to a total of 6,000 square RESOLUTION 61-25 2 1 P a g e feet of habitable floor area—would be assessed Pathway Impact Fee only on the 1,000 - square -foot increase. • Parcels on Master Path Plan – If a parcel is on the Master Path Plan and the developer builds and dedicates the required pathway per Town standards and requirements prior to Final Inspections of the building permit or issuance of Certificate of Occupancy, the Pathway Impact Fee would be waived. • Exemptions – Additions under 900 square feet of habitable or barn/stable floor areas within ten years are exempt from the pathway fee. • Fee Cap – The maximum Pathway Impact Fee for a single-family development is based on 7,000 square feet of habitable floor area, equaling to $38,430 during the first fiscal year of implementation. • Encroachment Permit – Any pathway design and construction must follow Town standards and requirements. Plans, including topographic surveys and necessary profiles/cross-sections, must be submitted through the Town's Encroachment Permit process and be approved before a Building Permit for the development project can be issued. Pathways must be built according to approved plans. Deposit fee accounts will be established for staff to oversee private pathway development projects per the proposed FY 2025/26 Fee Schedule update included in this Resolution ("Exhibit A") and as shown below: 1 1 ts Application Fee $326 Inspection Deposit $1,000 Trenching Fee (minimum $400) $17.00/lf Fence; Wall; Irrigation; Driveway Cuts (maximum $17.00/lf $595 Sight Distance and Traffic Study Peer Review $3,000.00 plus 10% admin fee Traffic Control Plan Review (Traffic Consultant) $300.00 per sheet for Standard Lane Closures Traffic Control Plan Review (Traffic Consultant) $900 per sheet for Long Term over one week Closures Staking of Pathway by Third -Party Surveyor (only $3,000 to $8,000 (varies applicable when developers request this service based on scope and from the Town) actual cost) plus 10% admin fee Review of Pathway Staking by Third -Party Surveyor (only applicable if staking survey $3,000 plus 10% admin information provided by developers need to be fee validated or confirmed Pathway Survey/Environmental/Design Review (Onsite or Offsite) – Engineering Staff (applicable $1,000 to all pathway projects for staff to oversee Pathway Construction Inspections and Compaction $1,000 includes 10% Testing (for Engineering staff to inspect pathway admin fee for third- construction and for third -party vendors to perform construction vendors action tests)party RESOLUTION 61-25 3 1 P a g e • Easements — Developers must hire a licensed surveyor to prepare plats and legal descriptions for the pathway easement. The easement must be formally granted to and accepted by the Town before the pathway can be deemed completed and accepted by the Town. • Construction Oversight — Town staff will oversee pathway construction and issue final acceptance before the improvements are transferred to Town maintenance. • Fee Collection — If a developer chooses not to, or is unable to, construct the required pathway, the Pathway Impact Fee will be collected before Final Inspection or issuance of a Certificate of Occupancy. • Subdivision Requirements — For subdivisions where pathways are not required, the Pathway Impact Fee is based on the greater of (a) the square footage indicated on the tentative map, or (b) 5,000 square feet of habitable floor area. WHEREAS, for the waiver of the Fee, the developer must pull an encroachment permit from Public Works Engineering as early as possible for staff to oversee the site survey, enviromnental determinations and mitigations, design, and construction of the pathway, and the construction of the pathway and its acceptance by the Town must be completed before the final inspection or the issuance of certificate of occupancy of the associated building permit(s); and WHEREAS, if the pathway is not constructed and accepted by the Town before the final inspection or occupancy, the Fee may be assessed against the property; and WHEREAS, staff presented the 2024 Pathway Nexus Study and the FY26 Pathway Impact Fee proposal and related Zoning Text Amendments to the Finance and Investment Committee on July 22, 2025, and to the Pathways Committee on July 28, 2025, wherein both committees provided few comments but recommended the proposed Pathway Impact Fee to Council for approval; and WHEREAS, on September 4, 2025, the Planning Commission held a duly noticed public hearing at which time all interested parties were provided an opportunity to give input and participate in the public process to consider the proposed Zoning Text Amendments for the FY26 Pathway Impact Fee update based on the 2024 Pathway Nexus Study, wherein the Planning Commission approved a resolution recommending that the City Council approve amendments to Article 6 of Chapter 2, Title 10 (Zoning And Site Development) of the Municipal Code to amend regulations related to the FY26 Pathway Impact Fee update; and WHEREAS, the Planning Commission also recommended the following comments and feedback for the City Council's consideration for the implementation of the proposed FY26 Pathway Impact Fee update: 1. Direct staff to clarify and simplify the new Engineering deposit fees related to the proposed Pathway Impact Fee. 2. Direct staff to conduct necessary studies to establish a pathway fee structure for multifamily housing developments as soon as possible to be reviewed by the Planning Commission before adoption by Council. 3. Direct staff to create and maintain a database of pathway fees paid and built. 4. Grant flexibility to allow the construction of native (off-road) pathways where roadside pathways are required. WHEREAS, staff added clarifications to the new Engineering deposit fees on the fee schedule included in "Exhibit A," but other recommendations from the Planning Commission regarding the fee structure for multifamily housing, database of pathway fees paid, and flexibility in pathway standards would require separate Council directions; and RESOLUTION 61-25 4 1 P a g e WHEREAS, Sections 66000 et seq. of the California Government Code ("Mitigation Fee Act") allows agencies to mitigate the impacts caused by new development by providing for the payment of development impact fees necessary for agencies to acquire property and construct new facilities to serve new residents and to maintain desirable levels of service for new and existing residents; and WHEREAS, AB 602 requires that local agencies adopt an appropriate nexus study as a precondition to adopt new development fees; and WHEREAS, on September 18, 2025, the City Council held a duly noticed public hearing in compliance with California Government Code sections 66016.5, 66017, and 66018, at which public testimonies were received, to adopt the 2024 Pathway Fee Nexus Study and consider the FY26 Pathway Impact Fee update; and WHEREAS, in a separate action of the City Council, the Municipal Code is being amended to be consistent with the updated pathway impact fee; and. WHEREAS, an annual development impact fee report for the pathway impact fee will be provided to the City Council as required by Government Code Section 66066(a); and WHEREAS, the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environmental are not a "project" for purposes of the California Environmental Quality Act ("CEQA"), pursuant to CEQA Guidelines, Section 15378(b)(4); and WHEREAS, the City Council desires to implement the FY26 Pathway Impact Fee and the associated Town fees to oversee the pathway project per the Planning/Building/Engineering Fee Schedules update in "Exhibit A", which will become effective no sooner than 60 days following the final passage and adoption of this Resolution, consistent with California Government Code Section 66017. NOW, THEREFORE, BE IT RESOLVED that the foregoing recitals and findings are found to be true and correct and. incorporated into this Resolution and the City Council of the Town of Los Altos Hills hereby approves and adopts as follows: 1. The 2024 Pathway Fee Nexus Study prepared by Matrix Consulting Group, included as Attachment 7 of the Council Staff Report for this Resolution; and 2. The FY26 Pathway Impact Fee for new and additions of "habitable" and barn or stable floor areas, cumulative totaling 900 square feet or more within a ten (10) year period, as described herein and pursuant to the Mitigation Fee Act; and 3. The Pathway Impact Fee specified. and the Planning/Building/Engineering Fee Schedules for FY26 as set forth in "Exhibit A" of the Resolution based on the 2024 Pathway Fee Nexus Study, and these fees shall become effective pursuant to the effective dates set forth in "Exhibit A" following the final passage and adoption of this Resolution and shall remain in effect until a new Resolution amending the same is adopted by the City Council; and 4. Accessory dwelling units shall not be assessed the pathway impact fee during the Town's Housing Element cycle of 2023-2031; and 5. The Pathway Impact Fee shall be collected in the Pathway Fund, which may only be used for the design and construction or reconstruction of pathways to serve new residents and new equestrian users; and RESOLUTION 61-25 5 1 P a g e 6. The pathway impact fee and other associated fees set by this Resolution shall be effective 60 days from the effective date of this Resolution in accordance with Government Code Section 66017; and 7. The City Council may, by resolution, adopt administrative guidelines to provide procedures for administrative aspects of the FY26 Pathway Impact Fee; and 8. Each component of the FY26 Pathway Impact Fee and all portions of this Resolution are severable and should any individual component of the pathway impact fees or other provision of this Resolution be adjudged to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective, and the pathway impact fees shall be fully effective except as to that component that has been judged to be invalid. The above and foregoing resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 18th day of September 2025 by the following vote: AYES: TANKHA, BHATEJA, MOK, SWAN, TYSON NOES: NONE ABSTAIN: NONE ABSENT: NONE ATTEST: Ps 6 W40, h, I Mm In w BY: /<— Kavita Tankha, Mayor RESOLUTION 61-25 6 1 P a g e Exhibit A Planning Fee Schedule FY 2025/26 Adopted via Resolution No. 61-25 — Effective Date: November 18, 2025 Building Fee Schedule FY 2025/26 Adopted via Resolution No. 61-25 — Effective Date: November 18, 2025 -1- Engineering Fee Schedule FY2025/26 Adopted via Resolution No. 61-25 — Effective Date: November 18, 2025 e o'e Deposit �tibli E, Application Fee $326 Inspection Deposit $1,000 Trenching Fee (minimum $400) $17.00/lf Fence; Wall; Irrigation; Driveway Cuts (maximum $595) $17.00/lf Sight Distance and Traffic Study Peer Review $3,000.00 plus 10% admin fee Traffic Control Plan Review (Traffic Consultant) for $300.00 per sheet Standard Lane Closures Traffic Control Plan Review (Traffic Consultant) for $900 per sheet Long Term (over one week) Closures ' $3,000 to $8,000 Staking of Pathway by Third -Party Surveyor (only (varies based on applicable when developers request this service from the scope and actual Town) cost) plus 10% admin fee Review of Pathway Staking by Third -Party Surveyor $3,000 plus (only applicable if staking survey information provided o 10 /o admin fee by developers need to be validated or confirmed) Pathway Survey/Environmental/Design Review (Onsite or Offsite) — Engineering Staff (applicable to all pathway $1,000 projects for staff to oversee) Pathway Construction Inspections and Compaction $1,000 includes Testing (for Engineering staff to inspect pathway 10% admin construction and for third -party vendors to perform fee for third - compaction tests) party vendors -2-