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Home My WebLink About2011/10/11 Item 08TY COUNCIL STATEMENT ~~ CtTY OF CHULA VISTA 10/11/11, Item ITEM TITLE: ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 3.55.090 CONCERNING THE WESTERN TRANSPORTATION DEVELOPMENT IMPACT FEE PROGRAM SUBMITTED BY: DIRECTOR OF PUBLIC WORKS ASSISTANT DIRECTO OF EN F REVIEWED BY: CITY MANAGER ~ ASSISTANT CIT MANAGER ~ ~ 4/STHS VOTE: YES ^ NO SUMMARY On March 4t'' and 8`'', 2008, the City of Chula Vista adopted Ordinances 3106 thru 3110 establishing a Western Transportation Development Impact Fee (WTDIF) program in order to collect fees to help pay for development impacts to the City's west side transportation system. One of four components that make up the WTDIF fee will not be collected by the San Diego Association of Governments (SANDAG} and must be removed from the WTDIF fee calculation. Tonight's action will eliminate the SANDAG component of the fee. No other changes are proposed. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the proposal consists of a governmental fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA review. Although environmental review is not necessary at this time, once the scope of individual projects to be funded have been defined, environmental review will be required for each project and the appropriate environmental determination will be made. RECOMMENDATION Council adopt an Ordinance amending Chula Vista Municipal Code Section 3.55.090 to eliminate the SANDAG fee from the WTDIF fee calculation BOARDS/COMMISSIONS RECOMMENDATION Not applicable. 8-1 Page 2, Item Meeting Date 10/ll/11 DISCUSSION New development places demands on the existing transportation infrastructure, which can be mitigated by upgrading existing and/or constricting new transportation facilities. The WTDIF program established in March of 2008 and effective on May 10, 2008, provides for future transportation facilities needs due to west side development through the Year 2030. The proposed future development will result in the need for transportation infrastructure improvements to accommodate growth-related traffic, including but not limited to traffic signals, curb, gutter and sidewalk, public transportation infrastructure and pedestrian and bicycle facilities. Awell-planned fee. program can generate sufficient funds to allow the city to adequately mitigate impacts created by new development. The impact fees are calculated for an Area of Benefit that encompasses the entire westside of the city and distribute the cost of infrastructure equitably among new development in Western Chula Vista. The fee is used to construct new transportation improvements or expand existing facilities and do not exceed the estimated reasonable cost of providing the new transportation improvements in accordance with California Government Code Section 66000 et seq. In establishing the WTDIF fee in 2008, the fee is made up of four individual components, each attributed to the fiend. The components are as follows: • Regional Arterial System (RAS) This component fiords contribution to regional arterial roadways such as Broadway, Bonita Road, E, H, L, Main, Orange and Palomar Streets. RAS roadways are listed in SANDAG's Regional Transportation Plan (RTP), Mobility 2030 (November 2007) and are generally described as those roads that act as a critical link in providing direct connections between communities ensuring system continuity and congestion relief in high volume corridors. • Non-Regional Arterial System (Non-RAS) This component funds contribution to other facilities and roadways not considered regional, but where development will create impacts to Chula Vista. • City of Chula Vista Administration costs of 2% of total fee paid. This is calculated as a 2% City administration fee allowed in the WTDIF for accounting and overhead costs incurred with administering the program. • SANDAG Administration costs of 1% of RAS. SANDAG had initially anticipated that they would incur 1% of the Regional Arterial Streets component of each agency's DIF program to fund the annual Independent Taxpayer Oversight Commission's review of the program, but subsequently decided not to pass these costs to the local agencies. This is the component of the fee that has been eliminated which Council must ratify. 8-2 Page 3, Item l~Ieeting Date 10/11/11 Once the City began to collect the fee in May of 2008, every construction permit issued was charged all four components of the fee. As such, the proportionate share of the WTDIF fee would go into each of four WTDIF accounts. As auditing for the WTDIF fee was conducted, it was noted that we had not been invoiced by SANDAG for their 1% administration fee. SANDAG was to use this fee to do annual auditing of the RAS program to ensure compliance with the Regional Transportation Program. Since it had been over one year that the WTDIF fee was created, City staff contacted SANDAG staff to inquire about the status of invoicing for their 1% RAS administration fee. The City was informed that SANDAG executive staff had made a decision that they would not be collecting their 1% administration fee from any jurisdiction in the County. At notification, City staff processed refunds to all permits that were charged the 1 % and has since not charged the 1 % for permits issued thereafter. By each July 1, each local agency submits to SANDAG's Independent Taxpayer Oversight Committee (ITOC) a report on its TDIF. At the time of the review and audit by the ITOC, each jurisdiction collecting a development impact fee to meet the requirements of its Funding Program shall provide the Committee with written findings for any expended, unexpended and uncommitted fees in their Program Fund and demonstrate a reasonable relationship between the fee and the purpose for which it was charged, consistent with the requirements of Government Code Section 66000. The SANDAG 1% fee is intended for these purposes. To formalize the SANDAG decision not to collect the 1 % fee, City staff asked for a letter from SANDAG stating that the 1 % SANDAG fee was not needed. A copy of the letter dated December 15, 2010 is attached (Attachment # 1). Impacts on the WTDIF fee From this process, the WTDIF report estimated the portion of total project costs that can be directly attributed to new development on the west side of Chula Vista. The baseline costs per EDU were determined to be $3,148.11. To this sub-total, the following administrative costs were added: a 2% WTDIF Administration cost, $62.96/EDU, and an additional 1% SANDAG Administrative cost, $31.48/EDU. The final fee was calculated at $3,243 per EDU. This $3,243 per EDU fee was collected and monitored separately for Regional facilities and local roadways. Regional arterials comprise 78.92 % or $2,559 of the total fee, while 21.08 % or $684 of the total fee will remain for local roadways. This percentage of the fee attributed to the RAS is consistent and meets the requirements from SANDAG & ITOC. With the elimination of the 1% SANDAG Administrative cost, the WTDIF fee of $3,243 per equivalent dwelling unit will be $3,212 (subject to an annual inflation adjustment of 2% or based on Caltrans highway construction cost index, whichever is higher). Staff is therefore recommending amending Chula Vista Municipal Code Section 3.55.090 as follows: A. The fee shall be the amounts as set forth below in Table 1. The fee shall be adjusted on July 1st of each year beginning in 2009. The annual inflation adjustment will be two 8-3 Page 4, Item Meeting Date 10/11/ll percent or based on Caltrans highway constriction cost index, whichever is higher. The program collects two percent of the total improvement cost estimate for staff administration DECISION-MAKER CONFLICTS Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. FISCAL IMPACT The Western Transportation Development Impact Fee, as do all of the City's Development Impact Fees, required the creation of a separate fund from the General Fund. There will be no negative impact to the General Fund. Council's action eliminates one component of the WTDIF that does not need to be collected by SANDAG, thus reducing the amount of fee. ON-GOING FISCAL IMPACT By Ordinances, the WTDIF fee will continue to be collected, less the 1% SANDAG Administrative component. ATTACHMENTS 1. SANDAG RTCIP Collection & Administration of Fees letter dated December 15, 2010 2. Table 1 -Amended WTDIF' Fee per Land Use Calculation Prepared by: Francisco X. Rivera P.E., T.E., Principal Civil Engineer and Merce LeClair, Sr. Management Analyst, Pccblic Works Department (File: TF-363) .1:1Engineer\AGENDA\CAS201 I\10-1 1-I 1\AgstRel%Reduo-l0 11 11-FINAL.doc 8-4 ATTA~C#-MM~NT / ~IIVD~IG. 401 B Street, Suite 800 San Diego, CA 92 1 0 1-423 1 (619) 699-1900 Fax (619) 699-1905 wwWSandag.org MEMBER AGENCIES Cities of Carlsbad Chula Vista Coronado Del Mar EI Cajon Encinitas Escondido fmperia! Beach La Mesa Lemon Grove National City Oceanside Poway San Diego San Marcos San tee Solana Beach vista and County of San Diego ADV150RY MEMBERS Impenai County Califomia Department of Transportation Metropolitan Transit System North County Transit District United States Department of Defense San Diego Unified Port District San Diego County Water Authority Southern California Tribal Chairmen's Association Mexico December 15, 2010 Mr. Richard A. Hopkins, P.E., Director of Public Works/City Engineer City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Dear Mr. Hopkins: File Number 1500100 SUBJECT: TransNet Regional Transportation Congestion Improvement Program -Collection and Administration of Fees The TransNet Extension Ordinance and Expenditure Plan (Regional Transportation Commission Ordinance 04-01) requires local agencies in the San Diego region to contribute a specified amount in exactions from the private sector for each newly constructed residential housing unit in that jurisdiction to the Regional Transportation Congestion Improvement Program (RTCIP). Each agency is required to establish its own collection program known as its RTCIP Funding Program. In 2007, San Diego Association of Governments (SANDAG) completed the RTCIP Impact Fee Nexus Study (Nexus Study). The final Nexus Study report, dated November 26, 2007, stated that local agencies and SANDAG could fund the administrative costs of the RTCIP with a charge added to the RTCIP impact fee. At the time the Nexus Study report was prepared, it was contemplated that SANDAG might add aone-percent administrative charge to the RTClP fee to fund costs related to the Independent Taxpayer Oversight Committee. Subsequently, it was determined that SANDAG would not implement the one-percent administrative charge. Collection of this RTCIP administrative charge by the City of Chula Vista is not required. Feel free to contact me at (619) 699-6994 or via a-mail to kkaCsandag.org if you have any additional questions. Sincere) , KIM KAWADA TransNet and Legislative Affairs Program Director KKA/dm i cc: Frank Rivera, City of Chula Vista Engineering Department 8-5 ~TC~~NT _~..~ 2010 Western Territories Transportation DIF 2010 WTDIF Less 1 SANDAG Proposed Type of Project 2010 WTDIF Fees Admin. Fee Residential Low Density (per DU) 0-6 DU per gross acre .................................... .. $ 3,243 $ 3,211 Medium Density (0.8 EDU/DU) 6.1-20 DU per gross acre .................... .. $ 2,594 $ 2,569 High Density (0.6 EDU/DU) >20 DU per gross acre ............................ .. $ 1,946 $ 1,927 Mobile Home (0.5 EDU/DU) .......................................................... .. $ 1,622 $ 1,606 Commercial Regional Commercial (per gross acre) (20 EDU/Acre) ........................ .. $ 64,860 $ 64,220 Community Commercial (per gross acre) (28 EDU/Acre) .................... .. $ 90,804 $ 89,908 Neighborhood Commercial (per gross acre} (48 EDU/Acre) ................. .. $ 155,664 $ 154,128 Neighborhood Commercial (per 1,000 sq ft) (4.8 EDU/1,000 sq ft)........ .. $ 15,566 $ 15,413 Street Front Commercial (per gross acre) (16 EDU/Acre) .................... .. $ 51,888 $ 51,376 Retail Commercial (per gross acre) (16 EDU/Acre} ............................ .. $ 51,888 $ 51,376 Wholesale Trade (per gross acre) (24 EDU/Acre) ............ ... ... ... ... ... .. . .. $ 77,832 $ 77,064 Office High Rise Office (per gross acre) 6+ stories in height (60 EDU/Acre).... ... $ 194,580 $ 192,660 Low Rise Office (per gross acre) <6 stories (30 EDU/Acre} ................. ... $ 97,290 $ 96,330 Low Rise Office (per 1,000 sq ft) <6 stories (2 EDU/1,000 sq ft) ........... .. $ 6,486 $ 6,422 Medical Office (per gross acre) (50 EDU/Acre} ................................. .. $ 162,150 $ 160,550 Lodging Low Rise Hotel/Motel (per gross acre) <4 stories (20 EDU/Acre).......... .. $ 64,860 $ 64,220 Low Rise Hotel or Motel (per room) <4 stories (1 EDU/Room) ............. ... $ 3,243 $ 3,211 High Rise Hotel (per gross acre} >=4 stories (30 EDU/Acre) ............... ... $ 97,290 $ 96,330 Industry Heavy Industry (per gross acre) (12 EDU/Acre) ................................ ... $ 38,916 $ 38,532 Warehouse/Storage (per gross acre) (6 EDU/Acre) ........................... .. $ 19,458 $ 19,266 Industrial Park (per gross acre) (9 EDU/Acre) .................................. ... $ 29,187 $ 28,899. Light Industrial (per gross acre) (20 EDU/Acre) ................................ ... $ 64,860 $ 64,220 8-6 ORDINANCE NO. 2011- ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 3.55.090 CONCERNING THE WESTERN TRANSPORTATION DEVELOPMENT IMPACT FEE PROGRAM WHEREAS, on March 4tn and Stn, 2008, the City of Chula Vista adopted Ordinances 3106 thru 3110 establishing a Western Transportation Development Impact Fee (WTDIF) program in order to collect fees to help pay for development impacts to the City's west side transportation system; and WHEREAS, in establishing the WTDIF fee in 2008, the fee was comprised of four individual components, each attributing to the fund; and WHEREAS the four individual components included: a Regional Arterial System (RAS), aNon-Regional Arterial System (Non-RAS), a City of Chula Vista Administration cost of 2% of total fee paid, and a SANDAG Administration cost of 1% of RAS; and WHEREAS, SANDAG had initially anticipated that they would incur 1% of the Regional Arterial Streets component of each agency's Development Impact Fee (DIF) program to fund the annual Independent Taxpayer Oversight Commission's review of the DIF programs, but subsequently decided not to pass these costs on to the local agencies; and WHEREAS, a letter from SANDAG was received as formal notification of the decision not to collect the 1% fee; and WHEREAS, City Council must take action to ratify the deletion of the SANDAG 1 Administration fee by amending Chula Vista Municipal Code Section 3.55.090. I. NOW, THEREFORE, BE IT ORDAINED that the City Council of the City of Chula Vista does hereby amend Chula Vista Municipal Code Section 3.55.090 as follows: A. The fee shall be the amounts as set forth below in Table 1. The fee shall be adjusted on July 1st of each year beginning in 2009. The annual inflation adjustment will be two percent or based on Caltrans highway construction cost index, whichever is higher. The program collects two percent of the total improvement cost estimate for staff iuiiaui~ .~ administration '' ~ `' ~+' ' "+ ~ " C ^ ~.Tr,"`^' "'' '" ~+"~+'` "+" 1 II. EFFECTIVE DATE This ordinance shall take effect and be in full force on the thirtieth day from and after its second reading. 8-7 Resolution Page 2 Presented by Richard A. Hopkins Director of Public Works Approved as to form by Gler l'~`1City 8-8