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HomeMy WebLinkAbout2012/11/20 Item 08CITY COUNCIL AGENDA STATEMENT ,,,,;~;;~ c1TV of u CHULAVISTA November 20, 2012, Item ~' ITEM TITLE: ORDINANCE OF THE CITY OF CHULA VISTA EXTENDING UNTIL DECEMBER 31, 2013, THE FEE DEFERRAL PROGRAM FOR CERTAIN DEVELOPMENT FEES TO ALLOW PAYMENT PRIOR TO BUILDING PERMIT FINAL INSPECTION INSTF,AD OF AT BUILDING PERMIT ISSUANCE SUBMITTED BY: ASSISTANT CITY MANAGER /DIRECTOR OF DEVELOPMENT SERVICES REVIEWED BY: CITY MANAGER~~ 4/STHS VOTE: YES ^ NO SUMMARY On ,Tanuary 6, 2009, City Council approved the creation of a payment plan program for development fees due to the current economic downturn. This deferral program was enhanced on April ?.1, 2009 where City Council also approved the deferral of Pazk fees. On September 14, 2010 Council further amended the deferral program with Ordinance 3163 whereby development fees were deemed payable at a building permit's final inspection rather than building permit issuance until December 31, 201]. The deferral program was extended additional yeaz, to December 31, 201 Z, with adoption of Ordinance 3220. This Ordinance extends the program one more year to December 31, 2013. 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: 8-1 Item No.: ~5' Meeting Date: 11-20-12 Page 2 of 2 Table 1 Fees to be collected rior to final ins ection of a buildin ermit Fee Descri tion Authori Sewer Ca acity Fee 13.14.090 Munici al Code Public Facility Development 3.50 Municipal Code Im act Fee DIF) Eastern Transportation 3.54 Municipal Code Development Im act Fee Western Transportation 3.55 Municipal Code Develo meet Im act Fee Telegraph Canyon Drainage Ordinance 2384 Fee established Poggi Canyon Sewer Ordinance 2716 Develo ment Im act Fee Salt Creek Sewer Development Ordinance 2974 Im act Fee Otay Ranch Village 1 and 5 Ordinance 2767 Pedestrian Brid e DIF Otay Ranch Village 11 Ordinance 2898 Pedestrian Brid e DIF Park Acquisition and 17.10 Municipal Code Develo ment 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, 2013. llECISION 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 ImpacC. The net effect due to time value of money issues (the City receives firnds later than traditional) should be of£--set by the fact the fees will be priced at the time of payment, not the time of building permit issuance, which for inflation indexed fees, typically means a higher amount. 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 2013. 8-2 ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA EXTENDING UNTIL DECEMBER 31, 2013, THE FEE DEFERRAL PROGRAM FOR CERTAIN DEVELOPMENT FEES TO ALLOW PAYMENT PRIOR TO BUILDING PERMIT FINAL INSPECTION INSTEAD OF AT BUILDING PERMIT ISSUANCE WHEREAS, as a response to the economic downturn and in an attempt to promote development, the City Council, on January 6, 2009, approved a payment plan program for certain development fees ("Deferral Program"); and WHEREAS, on September 14, 2010, Council expanded the Deferral Program to include Park Acquisition and Development fees; and WHEREAS, on September 14, 2010, through the approval and adoption of City of Chula Vista Ordinance 3163, City Council altered the nature of the Deferral Program and extended its effectiveness through December 31, 2011; 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, on December 6, 2011 through the approval and adoption of Ordinance 3220, City Council further extended the Deferral Program through December 31, 2012; 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, 2013; and WHEREAS, on January 1, 2013, unless further extended by approval of the City Council, the time for the payment of fees will revert back to their traditions! 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 8-3 Ordinance No. Page 2 This Ordinance shall take effect thirty days after final passage and shall automatically expire on December 31, X32013, 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 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: rz Gary Halbert, P.E. AICP len R. ogins Assistance City Manager/ Development 'ty Atto ey Services Director S-4