5B Public Hearing 2019 0506 - Laserfiche WebLink

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File Number: 19-208 In recent years, the California Legislature has been active in easing regulations to encourage the development of ADUs to address housing needs. Section 65852.2 of the California Government Code was amended by Senate Bill 1069 (Wieckowski), Assembly Bill 2299 (Bloom), and Assembly Bill 2406 (Thurmond) to streamline the permitting of ADUs by removing regulatory barriers. In response, the City enacted Ordinance 2017-003 to amend the Zoning Code to achieve the goals of the Housing Element and the corresponding Regional Housing Needs Allocation. As a result, the number of ADU applications in San Leandro has increased substantially. In comparison to other impact fees assessed in San Leandro, the PFDI fee is the highest for residential development. Although fee amounts vary from case to case, the total fee burden for new ADUs in San Leandro have often been around $15,000, with the PFDI fee comprising about half. Therefore, as the City seeks opportunities to support ADU development, while also ensuring that fees are assessed fairly and that revenues are sufficient to cover associated costs, it makes sense to evaluate the PFDI fee amount. The PFDI fee methodology was developed by Hausrath Economics Group in January 2000, adopted by Resolution No. 2000-064, and amended by Resolution No. 2005-069. The methodology was based on several factors including the assumed occupancy of each type of dwelling unit and SLMC section 7-1-820 Standards and Formula for Dedication of Land. The assumed occupancy currently ranges from 2.76 occupants per Single Family dwelling unit to 1.24 occupants per Special Unit. If one assumes 1.00 occupant per dwelling unit for an ADU, the corresponding PFDI fee would reduce proportionately. The FY 19-20 PFDI fee would therefore reduce from $8,508.00 per unit (Special Unit rate) to $7,374.00 (proposed ADU rate), a reduction of more than 13%. Other City departments have also re-evaluated their fees with respect to the development of ADUs. Although not part of this action, the Water Pollution Control Plant (WPCP) recommends a reduction of fees associated with residential connections to the City’s sanitary sewer system to account for the lower flow of modern plumbing fixtures. Under the new fee structure intended to take effect on January 1, 2020, ADU sewer connection fees will fall from $3,664.00 to $3,270.00, a nearly 11% reduction. Additionally, the Community Development Department is considering a reduction or elimination of the Community Planning Fee for ADU’s. Combined, these efforts are intended to incentivize ADU development in the City, based on reasonable nexus analyses that maintain compliance with applicable regulations and City policies. Current Agency Policies ·Advance projects and programs promoting sustainable economic development, including transforming San Leandro into a center for innovation. Page 2 City of San Leandro Printed on 4/30/2019