HomeMy WebLinkAboutOrd 2002-2855 ORDINANCE NO. 2855
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING SECTIONS 3.50.020, 3.50.030,
3.50.050, 3.50.070, AND 3.50.090 OF THE CHULA VISTA
MUNICIPAL CODE RELATING TO A DEVELOPMENT
IMPACT FEE TO PAY FOR VARIOUS PUBLIC FACILITIES
WITHIN THE CITY OF CHULA VISTA'S GENERAL PLAN
AREA BOUNDARY
WHEREAS, in June 2000, the City Council of the City of Chula Vista adopted Ordinance
No. 2810, increasing the Public Facilities Impact Fee (PFD1F) from $2,150 to $2,618 - the first
significant increase in nine years; and
WHEREAS, the increase was based on very preliminary versions of the new police
facility and civic center expansion master plans; and
WHEREAS, the design finn of Highland Partnership, Inc. was subsequently hired to
provide a rigorous needs assessment and cost analysis for the police and civic center expansion
projects; and
WHEREAS, new master plans for the police facility and civic center expansion - the two
most costly PFDIF projects - were approved by Council on July 17, 2001, containing updated
costs that necessitate a fee increase; and
WHEREAS, the impact fee is solely based upon that portion of project costs which are
attributable to new development; and
WHEREAS, under limited circumstances, developers of low/moderate-income housing
may need to defer or prepay impact fees at the current rate for up to 500 EDUs, in order to
financially protect the public-purpose project; and
WHEREAS, the fee increase was developed in conjunction with developers and the
Building Industry Association (BIA); and
WHEREAS, development is considered to take place in accordance with the Phasing
Plan established by the City's Planning Department which is subject to change depending on
actual development phasing; and
NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows:
THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS:
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SECTION 1. That the existing Ordinance Nos. 2432, 2320, 2554 and 2810 are hereby
superseded, and a new Chapter 3.50 is hereby added to the Chula Vista Municipal Code to read
as follows:
Chapter 3.50
DEVELOPMENT IMPACT FEES TO PAY FOR VARIOUS PUBLIC FACILITIES
3.50.010 General Intent.
The city's general plan land use and public facilities elements require that adequate public
facilities be available to accommodate increased population created by new development within
the city of Chula Vista.
The city council has determined that new development will create adverse impacts on the
city's existing public facilities which must be mitigated by the financing and construction of
certain public facilities which are the subject of this chapter. New development contributes to
the cumulative burden on these public facilities in direct relationship to the amount of population
generated by the development or the gross acreage of the commercial or industrial land in the
development.
The city council has determined that a reasonable means of financing the public facilities
is to charge a fee on all developments in the city of Chula Vista. Imposition of the public
facilities development impact fee on all new development for which building permits have not
yet been issued is necessary in order to protect the public safety and welfare in order to ensure
effective implementation of the city's general plan.
3.50.020 Definitions.
For the purposes of this chapter, the following words or phrases shall be construed as
defined in this section, unless from the context it appears that a different meaning is intended.
A. "Building permit" means a permit required by and issued pursuant to the Uniform
Building Code as adopted by reference by this city.
B. "Developer" means the owner or developer of a development.
C. "Development permit" means any discretionary permit, entitlement or approval for a
development project issued under any zoning or subdivision ordinance of the city.
D. "Development project" or "development" means any activity described as the following:
1. Any new residential dwelling unit developed on vacant land;
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2. Any new commercial/office or industrial development constructed on vacant land;
3. Any expansions to established developments or new developments on non-vacant
land in those land use categories listed in 1 and 2 above, if the result is a net
increase in EDUs. The fee shall be based solely on this net EDU increase.
4.Any new or expanding special land use project;
5. Any special purpose project developed on vacant land or non-vacant land, or
expanded within a pre-existing site, if the result is a net increase in EDUs. The
fee shall be based solely on this net EDU increase;
6. Any other development project not listed above but described in Section 65927
and 65928 of the State Government Code.
E. "Community purpose facility" means a facility which serves one of the following
purposes:
1. Social service activities, including such services as Boy Scouts and Girl Scouts,
Boys and Girls Club, Alcoholic Anonymous and services for the homeless;
2. Public schools;
3. Private schools;
4. Daycare;
5. Senior care and recreation;
6. Worship, spiritual growth and development.
F. "Special land use" means any non-residential, non-commercial/office or non-industrial
development project (e.g. Olympic Training Center, hospitals, utilities), or non-special purpose
project.
G. "Special purpose project" means any for-profit community purpose facility (e.g. daycare).
H. "Engineer report" refers to the April 20, 1993 "development impact fees for public
facilities" report.
I. "Extraordinary project cost increases" means increases resulting from costs that could not
have been reasonably foreseen at the time a project budget was established.
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J. "Extraordinary EDU change" means an increase or decrease in the number of remaining
planned equivalent dwelling units (EDUs) for which building permits have not yet been pulled,
which changes the existing total by more than 2,000 EDUs.
3.50.030 Public Facilities to be Financed by the Fee.
A. The public facilities ("facilities"), which are the subject matter of the fee, include
buildings, equipment and related one-time start-up costs or portions thereof, as detailed in
Subsection C below and in the engineer report on file in the office of the city clerk.
B. The city council may modify or amend this list of facilities by written resolution in order
to maintain compliance with the city's general plan or the capital improvement program.
C. The facilities are as follows:
1. Civic Center Expansion;
2. Police Department Facilities and Equipment;
3. Corporation Yard Relocation/Expansion;
4. Library System Expansion;
5. Fire Suppression System Expansion;
6. Geographic information system computer system expansion;
7. Computer system expansion;
8. Telecommunication system expansion;
9. Records management system expansion.
3.50.040 Territory to which Fee Applicable.
The area of the city of Chula Vista to which the fee herein established shall be applicable
shall be the territorial limits of the city of Chula Vista ("territory") as they may from time to time
be amended. (Ord 2554 '1, 1993).
3.50.050 Establishment of Fee.
A development impact fee ("fee"), to be expressed on a per equivalent dwelling unit
("EDU") basis, is hereby established to pay for the facilities within the territory. The fee shall be
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paid upon the issuance of building permits for each development project within the city of Chula
Vista, except that, at the discretion of the city manager, a developer may prepay all or part of
civic center expansion and/or police facilities fees that would be applicable to the developer's
future development projects. Prepayment would occur at the then current rate; however, the
developer has sole responsibility for paying subsequent fee increases resulting fi.om (1)
"extraordinary project cost increases", (2) normal annual adjustments in the Consumer Price
Index (CPI) or Building Construction Index (BCI), or (3) "extraordinary EDU changes."
3.50.060 Determination of Equivalent Dwelling Units.
Each new single family detached dwelling, single family attached dwelling, or trait within
a multi-family dwelling or mobile home dwelling in a development project shall be considered
one EDU for purposes of this fee. Commercial/office and industrial development projects shall
be charged at the rate of 5.00 EDU's per gross acre of land. The EDLI rate for each special land
use development project, as defined in Section 3.50.020, shall be charged at the rate of 5.00
EDUs per gross acre of land, except that the Olympic Training Center shall be charged at the rate
of 1.25 EDU's per gross acre of land. The EDU rate for each special purpose project, as defined
in Section 3.50.020, shall be charged at the rate of 3 EDUs per gross acre of land. The charges
shall be those outlined in Section 3.50.090.C. The fee multiplied by the total number of EDUs
within a given development project represents a developer's fair share ("fair share") for that
development project.
3.50.070 Time to Determine Amount Due.
The fee for each development shall be calculated at the time of building permit issuance
and shall be the amount as indicated at that time, and not when the tentative map or final map
were granted or applied for, or when the building permit plan check was conducted, or when
application was made for the building permit, except that a developer of a development project
providing low and/or moderate-income housing in accordance with Section III, Objective 1 of
the 1991 housing element of the general plan may request authorization to prepay or defer the fee
for up to 500 EDUs and said request may be approved at the sole discretion of the city manager.
In order to facilitate those low and/or moderate-income projects, which are planned for
construction through March 24, 2005, the fee for said projects shall be the fee existing as of
March 25, 2002.
3.50.080 Purpose and Use of Fee.
The fee collected shall be used by the city for the following purposes in such order and at
such time as determined by the city council:
A. To pay for such of the facilities that the city council determines should be constructed,
installed or purchased at that time, or to reimburse the city for facilities funded by the city fi.om
other Sources.
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B. To reimburse developers who have been required or permitted by Section 3.50.140.A to
construct, install or purchase approved facilities listed in Section 3.50.030.C, in such amounts as
the council deems appropriate.
C. To repay any and all persons who have, pursuant to prior fee ordinance 2320 or 2432, or
pursuant to this ordinance, advanced or otherwise loaned funds for the construction of a facility
identified herein.
D. To repay the city for administration costs associated with administration of the fee.
3.50.090 Amount of Fee.
A. The fee shall be the amounts set forth in Section 3.50.090.B and C. The city council may
adjust the amount of this fee as necessary to reflect changes in the costs of the facilities as may
be reflected by such index as the council deems appropriate, such as the Engineering-News
Record Construction Index, or such other basis; changes in the type, size, location or cost of the
facilities to be financed by the fee, changes in land use designation in the city's general plan, and
upon other sound engineering, financing and planning information. Adjustments to the fee may
be made by resolution amending this section.
B. The fee shall have portions which are, according to the engineer report, allocated to a
specific facility ("fee components") which correspond to the costs of the various facilities, plus
the administration cost for the fee, which is a percentage of the fee components' total cost
divided by total EDUs, as indicated in Section 3.50.090.
C. The fee shall be the following, depending on land use:
Land Use Fee
Residential $ 4,888/dwelling unit
Commercial/Office 20,860/acre
Industrial 20,860/acre
Special land use 20,860/acre
Olympic Training Center 6,11 O/acre
Public purpose Exempt
Nonprofit community purpose facility Exempt
Special purpose project, 14,664/acre
including for-profit day care
3.50.100 Development Projects Exempt from the Fee.
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A. Development projects by public agencies shall be exempt from the provisions of the fee if
those projects are designed to provide the public service for which the agency is charged ("public
purpose").
B. Community purpose facilities which are not operated for profit ("non-profit community
purpose facilities") are also exempt inasmuch as these institutions provide benefit to the
community as a whole including all land use categories which are the subject matter of the fee.
The city council hereby determines that it is appropriate to spread any impact such non-profit
community purpose facilities might have to the other land use categories subject to the fee. In
the event that a court determines that the exemption herein extended to community purpose
facilities shall for any reason be invalid, the city council hereby allocates the non-profit
community purpose facilities' fair share to the city of Chula Vista and not to any of the land use
categories which are the subject matter of the development impact land use categories.
C. Development projects which are additions or expansions to existing dwelling units or
businesses, except special land use projects, shall be exempt if the addition or expansion does not
result in a net increase in EDUs.
3.50.110 Authority for Accounting and Expenditures.
A. Fees collected before the effective date of the ordinance codifying this section.
1. All fees which have accrued shall remain in separate accounts ("accounts")
corresponding to the facilities listed in Section 3.50.030, as established by the
director of finance, and shall only be expended for the purposes associated with
each facility account.
2. The director of finance is authorized to maintain accounts for the various facilities
identified in this chapter and to periodically make expenditures from the accounts
for the purposes set forth herein.
B. Funds collected on or after the effective date of the ordinance codifying this section.
1. The fees collected shall be deposited into a public facility financing fund ("public
facilities development impact fee fund," or alternatively herein "fund") which is
hereby created and shall be expended only for the purposes set forth in this
chapter.
2. The director of finance is authorized to establish a single fund for the various
facilities identified in this chapter and to periodically make expenditures from the
fund for the purposes set forth herein.
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3.50.120 Findings.
The city council finds that collection of the fee established by this chapter at the time of
the building permit issuance is necessary to provide funds for the facilities and to ensure
certainty in the capital facilities budgeting for growth impacted public facilities.
3.50.130 Fee Additional to Other Fees and Charges.
This fee is in addition to the requirements imposed by other city laws, policies or
regulations relating to the construction or the financing of the construction of public
improvements within subdivisions or developments.
3.50.135 Mandatory Oversizing of Facility; Duty to Tender Reimbursement Offer.
Whenever a developer of a development project is required as a condition of approval of
a development permit to cause a facility or a portion of a facility to be built to accommodate the
demands created by the development project, the city may require the developer to install,
purchase or construct the Facility according to design specifications approved by the city, that
being with such supplemental size or capacity required by the city ("oversized capacity
requirement"). If such a oversized capacity requirement is imposed, the city shall offer to
reimburse the developer from the fund either in cash or over time, with interest at the fair market
value of money, as fees are collected, at the option of the city, for costs incurred by the developer
for the design and construction of the facility not to exceed the estimated cost of that particular
facility as included in the calculation and updating of the fee. The city may update the fee
calculation as city deems appropriate prior to making such offer. This duty to offer
reimbursement shall be independent of the developer's obligation to pay the fee.
3.50.140 Developer Construction of Facilities.
A. Whenever a developer of a development project would be required by application of city
law or policy as a condition of approval of a development permit to construct or finance a
facility, or if a developer proposes to design and construct a portion of a facility in conjunction
with the prosecution of a development project within the territo~, and follows the procedure for
doing same hereinbelow set forth, the city council shall, in the following applicable
circumstances, tender only the credit or reimbursement hereinbelow identified for that
circumstance.
1. If the cost of the facility, incurred by the developer and acceptable to the city, is
less than or equal to that portion of the developer's fair share related to the fee
component for that facility, the city may only give a credit ("developer credit")
against that portion of the developer's fair share related to the fee component for
that facility ("fair share of the fee component"); or
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2. If the cost of the facility, incurred by the developer and acceptable to the city, is
greater than that portion of the developer's fair share related to the fee component
for that facility, but less than or equal to the developer's total fair share, the city
may give a credit which credit shall first be applied against that portion of the fair
share related to the fee component for that facility, and the excess costs for the
facility shall then be applied as credits against such other fee components of the
developer's total fair share as the city manager, in his sole and unfettered
discretion, shall determine; or
3. If the cost of the facility, incurred by the developer and acceptable to the city, is
greater than the developer's total fair share, the city may give a credit against the
developer's total fair share as the city manager, in his sole and unfettered
discretion, shall determine; and/or, the city may tender to the developer a
reimbursement agreement to reimburse said developer only from the fund as
monies are available, over time, with interest at the fair market value of money, at
the option of the city.
B. Unless otherwise stated herein, all Developer Credits shall be calculated on a dollar basis
and converted into EDUs at the time building permits are pulled, based on the then current Fee.
3.50.150 Procedure for Issuance of Credits or Tender of Reimbursement Offer.
The city's extension of credits or tender of a reimbursement offer to a developer pursuant to
Section 3.50.140 shall be conditioned on the developer complying with the terms and conditions
of this section:
A. Written authorization shall be requested by the developer from the city and issued by the
city council by written resolution before developer may incur any costs eligible for
reimbursement relating to the facility.
B. The request for authorization shall contain the information listed in this section and such
other information as may from time to time be requested by the city.
C. If the council grants authorization, it shall be by written agreement with the developer,
and on the following conditions among such other conditions as the council may from time to
time impose:
I. Developer shall prepare all plans and specifications and submit same for approval
by the city.
2. Developer shall secure and dedicate any right-of-way required for the facilities.
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3. Developer shall secure all required permits and environmental clearances
necessary for construction of the facilities.
4. Developer shall provide performance bonds in a form and amount, and with a
surety satisfactory to the city (where the developer intends to utilize provisions for
immediate credit, the performance bond shall be for 100 pement of the value of
the project).
5. Developer shall pay all city fees and costs.
6. The city shall be held harmless and indemnified, and upon tender by the city,
defended by the developer for any of the costs and liabilities associated with the
construction of the facilities.
7. The city will not be responsible for any of the costs of constructing the facilities.
The developer shall advance all necessary funds to construct the facilities.
8. The developer shall secure at least three qualified bids for work to be done. The
construction contract shall be granted to the lowest qualified bidder. If qualified,
the developer may agree to perform the work at a price equal to or less than the
low bid. Any claims for additional payment for extra work or charges during
construction shall be justified and shall be documented to the satisfaction of the
Director of Public Works.
9. The developer shall provide a detailed cost estimate, which itemizes those costs of
the construction attributable to the facilities and excludes any work attributable to
a specific subdivision project. The estimate is preliminary and subject to final
determination by the director of public works upon completion of the facilities.
10. The city may grant partial credit for costs incurred by the developer on the facility
upon determination of satisfactory incremental completion of a facility, as
approved and certified by the director of public works, in an mount not to exceed
75 percent of the cost of the construction completed to the time the partial credit
is granted, thereby retaining 25 percent of such credits until issuance by the city
of a notice of completion.
11. When all work has been completed to the satisfaction of the city, the developer
shall submit verification of payments made for the construction of the facility to
the city. The director of public works shall make the final determination on
expenditures which are eligible for credit or reimbursement.
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3.50.140 Developer Transfer of Credits
A developer who, in accordance with the provisions of Sections 3.50.140 and 3.50.150,
receives credits against future payments of the Fee for one or more Fee Components may
transfer those credits as provided herein to another Developer.
(a) Thc Developer shall provide the City with written notice of such transfer within thirty
days. The notice shall provide the following information:
The name of the Developer to whom the credits were transferred;
The dollar value of transferred credits;
The Fee Component(s) against which the credits will be applied; and
The projected rate, by Fiscal Year, that the credits will be applied, until said
credits have been fully redeemed.
(b) Credits received by a Developer of a low-and/or moderate-income project, in accordance
with Section 3.50.70, can only be transferred to another low-and/or moderate-income
development Project.
3.50.160 Procedure for Fee Modification or Reduction.
Any developer who, because of the nature or type of uses proposed for a development
project, contends that application of this fee is unconstitutional or unrelated to mitigation of the
burdens of the development, may apply to the city council for a modification or reduction of the
fee. The application shall be made in writing and filed with the city clerk not later than ten days
after notice of the public heating on the development permit application for the project is given,
or if no development permit is required, at the time of the filing of the building permit
application. The application shall state in detail the factual basis for the claim of modification or
reduction. The city council shall make reasonable efforts to consider the application within sixty
days after its filing. The decision of the city council shall be final. Ifa reduction or modification
is granted, any change in use within the project shall subject the development to payment of the
fee. The procedure provided by this section is additional to any other procedure authorized by
law for protection or challenging this fee.
3.50.170 Fund Loans.
A. Loans by the city.
The city may loan funds to the fired to pay for facilities should the fund have insufficient
funds to cover the cost of said facility. Said loans, if granted, shall be approved upon the
adoption of the annual city budget and shall can'y interest rates as set by the city council for each
fiscal year. A schedule for repayment of said loans shall be established at the time they are made
and approved by the council, with a maximum term not to exceed the life of the fund.
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B. Developer loans.
A developer may loan funds to the city as outlined in Sections 3.50.140 and
3.50.150(c)(14). The city may repay said developer loans with interest, under the terms listed in
A. above.
3.50.180 Effective Date.
This ordinance shall become effective sixty days after its second reading and adoption.
Presented by Approved as to form by
t , <./'"(- 7 /~'~- ' "'.
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BC~ ~ity Attomey ~
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PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
Califomia, this 9th day of April, 2002, by the following vote:
AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Shirley Horto~, Mayor
ATTEST:
Susan Bigelow, City Clerk'
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Ordinance No. 2855 had its first reading at a regular meeting held on the 26th day of March, 2002
and its second reading and adoption at a regular meeting of said City Council held on the 9th day
of April, 2002.
Executed this 9th day of April, 2002.
Susan Bigelow, City Clerk