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HomeMy WebLinkAbout2011/11/15 Item 17TY COUNCIL STATEMENT ~`~~ CITY OF CHUiAViSTA November 15, 2011 Item ITEM TITLE: ORDINANCE OF THE CITY OF CHULA VISTA MODIFYING THE FEE DEFERRAL PROGRAM SUBMITTED BY: ASSISTANT CITY MANAGE (RECTOR OF DEVELOPMENT SERVICES REVIEWED BY: CITY MANAGE NO 4/STHS VOTE: YES ^ SUMMARY On December 16, 2008, in response to the economic downturn, City Council approved the creation of a payment plan program ("Deferral Program") for certain development fees. On April 21, 2009, the City Council expanded the Deferral Program to include the deferral of Park fees. On August 17, 2010, through the adoption of City of Chula Vista Ordinance 3163, City Council further amended the Deferral Program by allowing for the payment of fees at a building permit's final inspection, rather than building permit issuance. By its terms, the Deferral Program was to automatically expire on December 31, 2011. The proposed ordinance extends the deferral program for an additional year, to December 31, 2012, at which time fees will revert back to their traditional triggers: building permit issuance or final map approval. ENVIRONMENTAL REVIEW The Environmental Review Coordinator 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 fiscal action that will not result in a potentially significant physical impact on the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council approve the Ordinance to take effect and be in full force 30 days after the second reading and adoption. DISCUSSION The fees to be deferred under this ordinance are as outlined in Table 1 below: Table 1 Fees to be collected prior to final in Fee Description Sewer Capacity Fee Public Facility Development 17-1 spection of a building permit Authority 13.14.090 Municipal Code 3.50 Municipal Code Item No.: Meeting Date: 11-15-11 Page 2 of 2 Fee Description Authority Impact Fee (DIF) Eastern Transportation 3.54 Municipal Code Development Impact Fee Western Transportation 3.55 Municipal Code Development Impact Fee Telegraph Canyon Drainage Fee Ordinance 2384 established Poggi Canyon Sewer Development Ordinance 2716 Impact Fee Salt Creek Sewer Development Ordinance 2974 Impact Fee Otay Ranch Village 1 and 5 Ordinance 2767 Pedestrian Bridge DIF Otay Ranch Village 11 Pedestrian Ordinance 2898 Bridge DIF Park Acquisition and 17.10 Municipal Code Development Fees Date of Termination of this Ordinance The deferral program has been proposed in light of the current period of economic downturn in order to stimulate development. As such, the deferral program is temporary in nature. The applicability of this ordinance will be limited to the anticipated period of the current market slump and will expire on December 31, 2012. DECISION MAKER CONFLICT 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. CURRENT YEAR FISCAL IMPACT Approval of this ordinance has no General Fund Impact. Staff time associated with assessing fees will be picked up on the back end of the permit rather than at permit issuance. The net effect due to time value. of money issues (the City receives funds later than traditional) should be off-set by the fact the fees will be priced at the time of payment, not the time of building permit issuance. ONGOING FISCAL IMPACT The effect of this ordinance in the medium to long term should be negligible given that the program expires at the end of 2012. To the extent that new development would not have occurred but for this program, the effect may even be positive from a property tax perspective. Prepared by: Tom Adler, Development Services Department 17-2 ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTION 8 OF ORDINANCE. 3163 IN ORDER TO EXTEND THE FEE DEFERRAL PROGRAM WHEREAS, as a response to the economic downturn and in an attempt to promote development, the City Council, on December 16, 2008, approved a payment plan program for certain development fees ("Deferral Program"); and WHEREAS, on April 21, 2009, Council expanded the Deferral Program to include Park fees; and WHEREAS, on August 17, 2010, through the approval and adoption of City of Chula Vista Ordinance 3163, City Council altered the nature of the Deferral Program; and WHEREAS, the new Deferral Program, rather than requiring developers to pay fees at permit issuance or enter into an agreement secured by a lien placed on the property to be developed, allowed for the payment of fees at final inspection; and WHEREAS, the Deferral Program is due to expire on December 31, 2011; and WHEREAS, the current economic climate is little better than it was at the time the Deferral Program was implemented; and WHEREAS, the need to promote development in the City still remains; and WHEREAS, in light of the above, staff is proposing an amendment to Ordinance 3163 in order to extend the Deferral Program for an additional year, until December 31, 2012; and WHEREAS, on January 1, 2013, the time for the payment of fees will revert back to their traditional triggers: building permit issuance or final map approval. NOW THEREFORE, the City Council of the City of Chula Vista does ordain that: I. Ordinance 3163 be amended to read as follows: Section 8. Expiration of this Ordinance This Ordinance shall take effect thirty days after final passage and shall automatically expire on December 31, 2012, and as of that date, is deemed repealed. Notwithstanding the foregoing, any building permit issued prior to the expiration of this Ordinance shall not be required to pay fees until Final 17-3 Ordinance No. Page 2 Inspection or Certificate of Occupancy, provided none of the events identified in Section 6(B) have occurred. II. All other provisions of Ordinance 3163 shall remain in full force and effect III. This amendment to Ordinance 3163 shall take effect 30 days after its second reading and approval. Presented by: Approved as to form by: Gary Halbert, P.E. AICP Glen R. Googins ~.,, -~~U~G, ~ ,~ ~~~~ Assistance City Manager/ Development City Attorney Services Director 17-4