HomeMy WebLinkAboutOrd 2018-3440C:\ProgramData\activePDF\Temp\DocConverter\API\Input\$fa2cd72516bc$E0B9348449E042949B9D12966D5CB09D.docx
ORDINANCE NO. 3440
ORDINANCE OF THE CITY OF CHULA VISTA
CONSOLIDATING THE EASTERN TRANSPORTATION
DEVELOPMENT IMPACT FEE, WESTERN
TRANSPORTATION DEVELOPMENT IMPACT FEE, AND
BAYFRONT DEVELOPMENT IMPACT FEE CHAPTERS OF
THE CHULA VISTA MUNICIPAL CODE BY REPEALING
AND REPLACING CHAPTER 3.54 (TRANSPORTATION
DEVELOPMENT IMPACT FEE) AND REPEALING CHAPTER
3.55 (WESTERN AND BAYFRONT TRANSPORTATION
DEVELOPMENT IMPACT FEES)
WHEREAS, the City of Chula Vista currently assesses three geographically based
Transportation Development Impact Fee (“TDIF”) programs, the Eastern TDIF (“ETDIF”), the
Western TDIF (“WTDIF”), and the Bayfront TDIF (“BFDIF”); and
WHEREAS, the boundaries of the three geographically based TDIF programs are
presented in Exhibit 1, attached hereto and incorporated by reference; and
WHEREAS, in January 1988, the ETDIF was established as a development impact fee to
fund transportation facilities in the City’s Eastern Territories via adoption of Ordinance No.
2251; and
WHEREAS, pursuant to Ordinance No. 2251, the City has commenced the collection of
development impact fees to be used to construct transportation facilities to accommodate
increased traffic generated by new development within the City’s Eastern Territories; and
WHEREAS, Ordinance No. 2251 as amended by Ordinance Nos. 2289, 2348, 2349,
2431, 2580, 2604, and 2671 were repealed by Ordinance No. 2802 in January 1999; and
WHEREAS, by Ordinance No. 2802, the ETDIF was placed in Municipal Code Chapter
3.54; and
WHEREAS, by Ordinance Nos. 3029 and 3328, the ETDIF program was updated to
include new costs and facilities; and
WHEREAS, on March 18, 2008, the WTDIF was established as a development impact
fee to fund transportation facilities in the City’s Western Territories via adoption of Ordinance
Nos. 3106 through 3110, as codified in Chapter 3.55 of the Municipal Code; and
WHEREAS, in addition to preparing the City for future growth in the western portion of
the City, the San Diego Association of Governments (“SANDAG”) required San Diego County
cities to enact a Citywide TDIF program in order to continue receiving annual TransNet funds
for local streets; and
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WHEREAS, starting on July 1, 2008, each agency in the San Diego region was required
to contribute $2,000 in exactions (updated annually) from the private sector per Equivalent
Dwelling Unit (“EDU”) to improve the Regional Arterial System (“RAS”); and
WHEREAS, on January 31, 2015, the WTDIF was amended to remove the Bayfront Area
from the fee program and the BFDIF was established as a separate fee program to fund
transportation facilities in the City’s Bayfront Area via adoption of Ordinance No. 3328; and
WHEREAS, in order to ensure consistency between the ETDIF, WTDIF, and BFDIF
programs, and to simplify ordinance administration, the consolidation of all three fee programs
into a single chapter of the Chula Vista Municipal Code (“CVMC”) is recommended (Chapter
3.54); and
WHEREAS, the proposed consolidated Transportation Development Impact Fee Chapter
3.54 includes additional language to clarify application of the existing code, to streamline
administration, and to improve readability; and
WHEREAS, updates to simplify the fee modification, waiver, and deferral process,
including granting additional authority to the City Council to approve fee deferrals for projects
which provide significant public benefit are also recommended; and
WHEREAS, the City recognizes the positive economic benefits of hotel/motel land uses
and that such uses may not achieve stabilized operations until several years after construction is
complete; and
WHEREAS, the City Council therefore desires to allow for deferral of ETDIF, WTDIF,
and BFDIF fees for up to four years from Certificate of Occupancy for hotel/motel uses that do
not receive any other economic subsidy from the City, with the ultimate fee determination to be
based upon a traffic study of actual trip generation; and
WHEREAS, this action does not increase or decrease the ETDIF, WTDIF, or BFDIF
rates currently in effect; and
WHEREAS, the following findings are intended to establish a nexus between the impact
of future development and the use of the fees collected; and
WHEREAS, the City’s General Plan indicates the increased population will contribute to
increased traffic volumes; and
WHEREAS, engineering studies show the transportation network will be adversely
impacted by new development within the City’s Eastern Territories, Western Area, and Bayfront
Area; and
WHEREAS, engineering studies and the City’s General Plan establish that the
transportation facilities necessitated by development in the City’s Eastern Territories, Western
Area, and Bayfront Area comprise integrated networks; and
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WHEREAS, on September 25, 2018, the City Council of the City of Chula Vista did
conduct a duly-noticed public hearing for consideration of a revision to the TDIF program; and
WHEREAS, the City’s Development Services Director 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; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the
activity is not subject to CEQA.
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby ordain as
follows:
Section I. Substantive Action
Chapter 3.54 of the Chula Vista Municipal Code is hereby repealed and replaced in its entirety.
Chapter 3.55 of the Chula Vista Municipal Code is hereby repealed. New Chula Vista Municipal
Code Chapter 3.54 shall read as follows:
Chapter 3.54
TRANSPORTATION DEVELOPMENT IMPACT FEES
Sections:
3.54.010 General intent.
3.54.020 Definitions.
3.54.030 Transportation facilities to be financed by the fees.
3.54.040 Areas to which fees are applicable.
3.54.050 Establishment of fees.
3.54.060 Determination of fees by land use category.
3.54.070 Time to determine fee amount due.
3.54.080 Purpose and use of fees.
3.54.090 Amount of fees.
3.54.100 Development projects exempt from fees.
3.54.110 Authority for accounting and expenditures.
3.54.120 Findings.
3.54.130 Fees additional to other fees and charges.
3.54.140 Developer construction of transportation facilities.
3.54.145 Mandatory oversizing of facility – Duty to tender reimbursement offer.
3.54.150 Procedure for issuance of credits or tender of reimbursement offer.
3.54.155 Developer transfer of credits.
3.54.160 Procedure for fee modification or reduction.
3.54.170 Assessment and special tax districts.
3.54.180 Economic incentive credit.
3.54.190 Fund loans.
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3.54.200 Effective date.
3.54.010 General intent.
The City’s General Plan Land Use and Transportation element requires that adequate
Transportation Facilities be available to accommodate increased population created by new
development within the City of Chula Vista.
The City Council of the City of Chula Vista 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 Transportation Facilities that are the subject of this chapter. New
development contributes to the cumulative burden on Transportation Facilities in direct
relationship to the demand for service generated by the development.
The City Council of the City of Chula Vista has determined that a reasonable means of financing
the impacted Transportation Facilities is to charge a Fee on all developments located within the
following subareas of the City of Chula Vista: the Eastern Area, the Western Area, and the
Bayfront Area. Imposition of the transportation development impact fees on all new
development for which building permits have not yet been issued is necessary in order to protect
the public safety and welfare, thereby ensuring effective implementation of the City’s General
Plan.
3.54.020 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. “Accessory Dwelling Unit” means a dwelling unit as defined in CVMC 19.58.022.
B. “Bayfront Area” generally means that area of the City of Chula Vista generally west of
Interstate 5 and between E Street and Naples Street as shown on the map entitled
“Attachment 1” of the Council agenda statement for the ordinance codified in this chapter, on
file in the office of the City Clerk.
C. “BFDIF” means the Bayfront Transportation Development Impact Fee.
D. “Building Permit” means a permit required by and issued pursuant to the Uniform Building
Code, as adopted by reference by this City.
E. “Developer” means the owner or developer of a Development Project.
F. “Development Permit” means any discretionary permit, entitlement or approval for a
Development Project issued under any zoning or subdivision ordinance of the City.
G. “Development Project” or “Development” means any activity described as the following:
1. Any new residential dwelling unit, including any accessory dwelling unit, developed
on vacant land;
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2. Any new residential dwelling unit, including any accessory dwelling unit, developed
on nonvacant land, if the result is a net increase in demand for service. The fees shall
be based solely on the net increase in service demand;
3. Any physical conversion of an existing residential structure to create an accessory
dwelling unit, for which a Building Permit has been issued after September 25, 2018;
4. Any new non-residential Development constructed on vacant land;
5. Any expansion or intensification of non-residential Developments on nonvacant land,
if the result is a net increase in demand for service. The fees shall be based solely on
the net increase in service demand.
H. “Eastern Area” generally means that area of the City of Chula Vista located between
Interstate 805 on the west, the city sphere of influence boundary on the east and northeast,
the city boundary on the north and the city’s southern boundary on the south as shown on the
map entitled “Attachment 1” of the Council agenda statement for the ordinance codified in
this chapter, on file in the office of the City Clerk.
I. “Engineer’s Reports” mean the “Interim Eastern Area Development Impact Fee for Streets”
study prepared by George T. Simpson and Willdan Associates dated November 1987; the
“Eastern Area Development Fee for Streets” study prepared by Willdan Associates dated
November 19, 1990; the “Eastern Development Impact Fee for Streets – 1993 Revision”
study prepared by City staff dated July 13, 1993; the study prepared by Project Design
Consultants (“Eastern Area Development Impact Fees for Streets, 1999 Update”) dated
October 25, 1999; the study prepared by Willdan (“Eastern Area Development Impact Fees
for Streets” dated July 2002); the study prepared by City staff (“Eastern Area Transportation
Development Impact Fees” dated March 2005); and the study prepared by City staff
(“Eastern Area Development Impact Fees” dated September 2014), which are on file in the
office of the City Clerk. “Engineer’s Report’s” also mean the Engineer’s Report for the
Western Transportation Development Impact Fee prepared by City staff, dated February
2008; and the “Western Transportation Development Impact Fee Nexus Study Update” dated
October 2014, and the “Bayfront Transportation Development Impact Fee Nexus Study”
dated October 2014, both prepared by City staff on file in the office of the City Clerk.
J. “ETDIF” means the Eastern Transportation Development Impact Fee.
K. “Fees” means the Transportation Development Impact Fees established pursuant to CVMC
3.54.050 and assessed in accordance with the Mitigation Fee Act (Government Code
§§66000-66025), as described in relevant Engineer’s Reports on all Development Projects
located within the Eastern Area, the Western Area, and the Bayfront Area.
L. “Fee Credit” means credits that Developers may receive for costs they incur designing and
constructing the Transportation Facilities in accordance with CVMC 3.54.150.
M. “Nonprofit Community Purpose Facility” means a facility that is not operated for profit and
that serves one of the following purposes:
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1. Social and human service activities, including such services as Boy Scouts and Girl
Scouts, Boys and Girls Club, Alcoholics Anonymous and services for the homeless;
2. Public schools (primary and secondary only);
3. Private schools (primary and secondary only);
4. Day care;
5. Senior care and recreation;
6. Worship, spiritual growth, and development.
N. “Published traffic generation rates” means rates used to calculate traffic generation that are
prepared and disseminated by local agencies, regional entities (such as Metropolitan Planning
Organizations), and professional societies with expertise in the development of traffic
generation rates.
O. “TDIF” means Transportation Development Impact Fee.
P. “Transportation Facility” means the project or portion of a project which involves the
specified improvements authorized by CVMC 3.54.030.
Q. “Western Area” generally means that area of the City of Chula Vista located between
Interstate 5 on the west, Interstate 805 on the east, the city boundary on the north and the City
boundary on the south, also including the area to the north of E Street, south of Naples Street
and to the west of Interstate 5, as shown on the map entitled “Attachment 1” of the Council
agenda statement for the ordinance codified in this chapter, on file in the office of the City
Clerk.
R. “WTDIF” means Western Transportation Development Impact Fee.
3.54.030 Transportation facilities to be financed by the fees.
A. The Transportation Facilities which are the subject matter of the ETDIF, WTDIF, and
BFDIF, include (but are not limited to) Freeways, Expressways, Prime Arterials, Major
Streets, Collectors, Town Center Arterials, Gateway Streets, Urban Arterials, Commercial
Boulevards, Downtown Promenades, traffic signals, bicycle and pedestrian facilit ies, and
capacity-enhancing transportation management technologies and associated capital
expenditures, as detailed in the Engineer’s Reports on file in the office of the City Clerk. The
Transportation Facilities also include related one-time start-up costs or portions thereof.
B. The City Council of the City of Chula Vista may modify or amend the lists of Transportation
Facilities by resolution in order to maintain compliance with the City’s General Plan or the
capital improvement program.
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C. The Transportation Facilities are those listed in the Engineer’s Reports, included by
reference.
3.54.040 Areas to which fees are applicable.
The areas of the City of Chula Vista to which the fees herein established shall be applicable shall
be the Eastern Area, the Western Area, and the Bayfront Area, as they may from time to time be
amended by ordinance of the City Council.
3.54.050 Establishment of fees.
A. Development impact fees in the amounts set forth in CVMC 3.54.090 are hereby established
to pay for the Transportation Facilities within the Eastern Area, the Western Area, and the
Bayfront Area. The Fees shall be paid no earlier than upon the issuance of Building Permits
and no later than Final Inspection or Certificate of Occupancy for each Development Project
within the City of Chula Vista.
B. Notwithstanding CVMC 3.54.050(A) above, the City Manager, in his/her sole discretion,
may require payment of the Fees in advance of Final Inspection or Certificate of Occupancy
upon the occurrence of any of the following events:
1. The change of ownership of the Development, or any portion or portions thereof;
2. Upon the Finance Director’s determination that the Fees are necessary based on the
adopted facilities program in accordance with California Government Code Section
66007(b)(1);
3. Upon a determination by the Finance Director that there exists a risk associated with the
collection of the Fees at a date later than permit issuance.
In no instance shall the Fees be paid earlier than Building Permit issuance.
3.54.060 Determination of fees by land use category.
The Fees shall be determined based on the average daily traffic generation of the Development
Project. The City Manager or designee shall calculate the traffic generation of the Development
Project using published traffic generation rates, traffic generation studies, traffic count data,
traffic impact studies, other relevant data and analysis, and/or engineering judgment.
For purposes of the Fees, single-family dwelling units shall include single-family detached
homes and detached condominiums; multi-family dwelling units shall include attached
condominiums, townhouses, duplexes, triplexes, accessory dwelling units, and apartments. The
traffic generation for residential land uses shall be calculated based on the number of dwelling
units proposed in the Development Project.
The traffic generation for non-residential land uses shall be calculated using various measures of
development intensity as described in published traffic generation rates. For these uses, rates
based on the square footage of the Development Project will in most cases be selected over rates
based on gross acreage, as determined by the City Manager or designee. As it applies to non -
residential land uses, gross acreage means all land area that the City Man ager’s designee deems
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necessary within the boundary of the parcel or parcels of the Development Project for which
building permits are being requested.
In the ETDIF, the traffic generation rates for commercial retail land uses shall be reduced by
72% to recognize the capture of locally-generated residential traffic as documented in “Eastern
Area Transportation Development Impact Fees” Engineer’s Report, dated March 2005.
3.54.070 Time to determine amount due.
The Fees for each Development shall be calculated based on the rates in effect at the time of
payment.
3.54.080 Purpose and use of fees.
The Fees 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 Transportation Facilities that the City Council determines should be
constructed, installed or purchased at that time, or to reimburse the City for Transportation
Facilities funded by the City from other sources.
B. To reimburse Developers who have been required or permitted by CVMC 3.54.140 to
construct, install or purchase approved Transportation Facilities identified in the Engineer’s
Reports, in such amounts as the City Council deems appropriate.
C. To pay for costs associated with administration of the Fees.
3.54.090 Amount of the fees.
A. The Fees shall be the amounts set forth in subsection (B) of this section.
The ETDIF shall be adjusted, starting on October 1, 2018, and on each October 1st
thereafter, based on the one-year change (July to July) in the Engineering News Record,
Construction Cost Index for the Los Angeles Region. Adjustments of the Fees based upon
annual changes to the applicable index shall be automatic and shall not require further action
by the City Council.
The BFDIF and WTDIF shall be adjusted on October 1, 2018, and on each October 1st
thereafter. The annual inflation adjustment will be based on the one-year change (from July
to July) in the Caltrans Highway Construction Cost Index or the Los Angeles Construction
Cost Index as published by the Engineering News Record (ENR), or an increase of at least
two percent. The program collects two percent of the total hard project cost estimate for
program administration. Adjustments to BFDIF and WTDIF authorized in this section shall
also be automatic in accordance with annual action taken by the San Diego Association of
Governments (SANDAG) Board of Directors and shall not require further action by the City
Council.
The Fees may also be reviewed and amended by the City Council as necessary based on
changes in the type, size, location or cost of the Transportation Facilities to be financed by
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the Fees; changes in land use designation in the City’s General Plan; and upon other sound
engineering, financing, and planning information.
B. The Fees as of October 1, 2017 are as follows:
BFDIF: $1,029.70 per average daily trip
ETDIF: $1,412.60 per average daily trip
WTDIF: $426.00 per average daily trip
C. Developer shall pay an Administrative Fee in cash concurrent with the Fees pursuant to
CVMC 3.54.090(B) to fund staff activities related to administering the Fee.
3.54.100 Development projects exempt from the fees.
A. Development Projects by public agencies shall be exempt from the provisions of the Fees if
those projects are designed to provide the public service for which the agency is charged
(“Public Purpose”).
B. Nonprofit 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 Fees. The City Council hereby determines that it is appropriate to spread
any impact such Nonprofit Community Purpose Facilities might have to the other land use
categories subject to the Fees. In the event that a court determines that the exemption herein
extended to Nonprofit Community Purpose Facilities shall for any reason be invalid, the City
Council hereby allocates the Nonprofit 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 that are additions or expansions to existing dwelling units or additions,
expansions, or changes of use to businesses shall be exempt if the addition, expansion or
change of use does not result in a net increase in dwelling units or non-residential intensity.
The Fees shall be assessed on any net additional dwelling units or non-residential intensity.
Any net reduction in dwelling units or non-residential intensity shall not be entitled to a
refund, but the property retains credit based on the former number of dwelling units or non-
residential intensity.
3.54.110 Authority for accounting and expenditures.
All funds collected shall be deposited into specific funds based on the Area within which the
Development occurs. Fees collected for the ETDIF shall be deposited into an Eastern
Transportation Development Impact Fee Fund, Fees collected for the WTDIF shall be deposited
into a Western Transportation Development Impact Fee Fund, and Fees collected for the BFDIF
shall be deposited into a Bayfront Transportation Development Impact Fee Fund (collectively,
the “Transportation Development Impact Fee Funds”) as established by the Director of Finance
and shall only be expended for the purposes identified herein.
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3.54.120 Findings.
The City Council finds that collection of the Fees established by this chapter is necessary to
provide funds for the Transportation Facilities and to ensure certainty in the capital facilities
budgeting for growth-impacted public transportation facilities.
3.54.130 Fees additional to other fees and charges.
The Fees are 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 Development Projects.
3.54.140 Developer construction of transportation facilities.
Developer may construct or finance a Transportation Facility in accordance with the following:
A. Any Developer of a Development Project required by application of City ordinance,
regulation, or policy, as a condition of approval of a Development Permit to construct or
finance a Transportation Facility, or any Developer that proposes to design and construct a
Transportation Facility in conjunction with the execution of a Development Project shall
follow the procedure for doing same as set forth in this chapter and CVMC 2.56.160(H).
B. Unless otherwise stated herein, all Fee Credits shall be calculated on a dollar basis to be
applied toward payment of the assessed Fee at the time Fees are due, based on the then-
current Fee rate.
C. Fee Credits earned by constructing or financing Transportation Facilities financed by the Fee
may only be tendered for payment of the Fee for a Development within the area to which the
Fee is applicable. Fee Credits are not fungible as payment toward a different development
impact fee in the City than the Fee in which Fee Credit was earned.
D. The requirements of CVMC 3.54.145, 3.54.150, and 3.54.155 may, in the City’s discretion,
be modified through an agreement between the Developer and the City, as approved by
Resolution of the City Council.
3.54.145 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 Transportation 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 Transportation 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 an Oversized Capacity Requirement is imposed, the City shall tender to
the Developer a reimbursement agreement for City-approved costs associated with the Oversized
Capacity Requirement, to be paid in cash when funds are available, as determined by the City
Manager. The City may, in its discretion, enter into an agreement with the Developer to issue
Fee Credits in-lieu of a reimbursement agreement for costs associated with the Oversized
Capacity Requirement, or some combination thereof.
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3.54.150 Procedure for issuance of credits or tender of reimbursement offer.
The City’s extension of Fee Credits or tender of a reimbursement offer to a Developer pursuant
to CVMC 3.54.140 and 3.54.145 shall be conditioned on the Developer complying with the
following terms and conditions of this section:
A. Developer shall comply with the procedures described in CVMC 2.56.160(H), except that
City Council approval to proceed shall not be required for Developer constructed
Transportation Facilities to be constructed for Fee Credit.
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. In addition to the
requirements identified in CVMC 2.56.160(H), Developer shall perform the following:
1. Developer shall prepare plans and specifications for approval by the City;
2. Developer shall secure and dedicate any right -of-way required for the Transportation
Facility;
3. Developer shall secure all required permits and environmental clearances necessary for
construction of the Transportation Facility;
4. Developer shall provide a detailed cost estimate that itemizes those costs of the
construction attributable to the Transportation Facility and excludes any work attributable
to a specific subdivision project. The estimate shall be preliminary and the final amount
of reimbursement or Fee Credit shall be subject to final determination by the City
Manager or designee upon completion of the Transportation Facility;
5. 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 percent of the estimated cost of the
Transportation Facility, pursuant to subsection 4 above);
6. Developer shall pay all City fees and costs;
7. 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 Transportation Facility;
8. The City shall not be responsible for any of the costs of construct ing the Transportation
Facility. The Developer shall advance all necessary funds to construct the Transportation
Facility;
9. Developer shall be entitled to immediate Fee Credit equal to fifty (50) percent of the
estimated cost of the Transportation Facilit y upon City acceptance of the estimate
provided pursuant to subsection 4 above and the provision of performance bonds
pursuant to subsection 5 above;
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10. Following receipt of valid bids for the Transportation Facility which comply with all
applicable requirements, entering into binding contracts for the construction of the
Transportation Facility, and meeting all requirements and conditions set forth above, as
approved by the City Manager or designee, the Developer shall be entitled to additional
Fee Credits, increasing the cumulative immediate Fee Credit award to seventy-five (75)
percent of the bid amount attributable to the Transportation Facility, thereby retaining
twenty-five (25) percent of such Fee Credits until issuance by the City of a final
expenditure determination;
11. If the Developer uses all of the immediate credit before final completion of the
Transportation Facility project, then the developer may defer payment of development
impact fees for other Building Permits by providing to the City liquid security such as
cash or an irrevocable letter of credit, but not bonds or set-aside letters, in an amount
equal to the remaining amount of the estimated cost of the Transportation Facility
project;
12. When all Transportation Facility construction work has been completed to the
satisfaction of the City Manager or designee, Developer shall submit to the City
verification of payments made for the construction of the Transportation Facility. City
Manager or designee shall make the final determination of which expenditures are
eligible for Fee Credit or reimbursement. The Developer shall receive additional Fee
Credit in an amount equal to the difference between the final expenditure determination
and the seventy-five (75) percent immediate Fee Credit issued pursuant to subsection 10
above. If the amount of the final Fee Credit award is less than the deferred obligation
pursuant to Subsection 11 above, then the Developer shall have thirty (30) calendar days
to pay the deferred fee. If the deferred fees are not paid within this period, the City may
make a demand against the liquid security and apply the proceeds to the fee obligation.
3.54.155 Developer transfer of credits.
A Developer who, in accordance with the provisions of CVMC 3.54.140, 3.54.145, and
3.54.150, receives Fee Credits against future payments of the Fee may transfer those Fee Credits
as provided herein to another Developer (“Credit Transfer”). If the Developer complies with all
conditions of this section, the City shall permit and execute the Credit Transfer. Fee Credits
associated with facilities acquired or financed by assessment districts or special tax districts are
not eligible for Credit Transfer beyond the boundaries of said district(s).
A. The Developer shall provide the City with written request for Credit Transfer no later than
three (3) business days prior to the desired effective date of the Credit Transfer. The request
shall provide the following information:
1. The name of the Developer receiving the Credit Transfer;
2. The dollar value of the transferred Fee Credits; and
3. The Fee against which the Fee Credits will be applied.
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B. Credit Transfers must abide by the limitations described in CVMC 3.54.140(C).
3.54.160 Procedure for fee modification or reduction.
A. 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 impacts of the Development may apply to the City Manager, in writing, for a
modification or reduction of the Fee. The application shall state in detail the factual basis for
the claim of modification or reduction. The City Manager shall issue a decision within ten
(10) business days of receipt of the application for Fee modification or reduction. The
decision of the City Manager may be appealed to the City Council. Unless the requirement
for timely filing is waived by the City, the appeal shall be made in writing and filed with the
City Clerk not later than ten (10) business days after issuance of the City Manager’s decision.
The appeal shall state in detail the factual basis for the claim of modification or reduction.
The City Council shall consider the application at a public hearing on same, notice of which
need not be published other than by description on the agenda of the meeting at which the
public hearing is held. The City Council shall make reasonable efforts to hold the public
hearing within sixty (60) days of the filing of the appeal. The decision of the City Council
shall be final. If a reduction or modification is granted, any change in use within the
Development Project shall subject the Developer to payment of the Fee for the new use. The
procedure provided by this section is additional to any other procedure authorized by law for
protesting or challenging the Fee imposed by this chapter.
B. A Development Project which is designated and intended as a temporary use (10 years or
less) and which is conducted in facilities which are, by their nature, short-term interim
facilities such as a portable or modular building (including mobile homes, trailers, etc.) may
qualify for a waiver or reduction, as determined by the City Manager or designee. The City
Manager or designee’s determination may be appealed to the City Council pursuant to
subsection A above.
C. A deferral of the Fee may be granted on the basis of Developer’s demonstrated economic
hardship as determined at the sole discretion of the City Manager or designee, on the
condition that the amount deferred bears interest at a fair market rate so as to constitute an
approximate value equivalent to a cash payment and that the amount deferred is adequately
secured by agreement with the applicant, the terms of which shall be subject to approval of
the City Attorney and the City Manager.
D. A deferral of the Fee may be granted on the basis that the Development Project offers a
significant public benefit as determined at the sole discretion of the City Manager or
designee, on the condition that the amount deferred bears interest at a fair market rate so as
to constitute an approximate value equivalent to a cash payment and that the amount deferred
is adequately secured by agreement with the applicant, the terms of which shall be subject to
approval of the City Attorney and the City Manager.
E. At a minimum, deferral agreements pursuant to CVMC 3.54.160(C) and 3.54.160(D) shall
require the following:
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Ordinance No. 3440
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1. The Fee obligation be secured through a promissory note and a recorded lien, deed of
trust, or other security instrument acceptable to the City Manager or designee in real
property of at least equivalent value to the Fees due pursuant to CVMC 3.54.090, to be
located within the City of Chula Vista.
2. The outstanding deferred balance shall become due and payable if the Developer
transfers the Development Project property to any other party without the reasonable
advance approval of the City Manager or designee and the acceptance of the other party
of the obligation to pay the outstanding balance of the deferred fees as provided herein,
including, without limitation, the provision of appropriate security acceptable by the City
Manager or designee.
F. Any Developer who proposes the construction of a new hotel/motel, which does not
otherwise receive an economic subsidy from the City, may apply to the City for a deferral
and/or reduction of the Fee based on the nature of hotel/motel.
1. A deferral pursuant to this section may be granted for a period of up to four (4) years
from the Certificate of Occupancy for the Development Project. The deferral period shall
begin upon the issuance of a temporary Certificate of Occupancy, as applicable. The
total amount deferred shall be secured through an agreement between the City and the
developer, the terms of which shall be subject to approval of the City Attorney and the
City Manager. At a minimum, the agreement shall require the following:
i. The Fee obligation be secured through a promissory note and a
recorded lien, deed of trust, or other security instrument acceptable to
the City Manager or designee in real property of at least equivalent
value to the Fees due pursuant to CVMC 3.54.090, to be located
within the City of Chula Vista.
ii. Any sale or transfer of the hotel/motel property shall require the new
owner to assume all obligations of the transferring party, including full
responsibility for the outstanding deferred balance. The City of Chula
Vista shall be provided with notice of the transfer and documentation
satisfactory to the City Manager or designee demonstrating that the
new owner has fully assumed all obligations of the transferring party.
Failure to provide such notice and documentation shall cause the
outstanding deferred balance to become due and payable.
iii. The City’s final determination of the Fees to be imposed on the
hotel/motel will be based on a traffic study to be paid for by the
developer and prepared and submitted for approval by the City’s
Director of Development Services within the fourth year of operation
of the fully developed hotel/motel. The Fees shall be assessed based
upon the rates in effect at the time of payment. Should the developer
fail to submit such traffic study and obtain the City’s approval thereof
prior to the expiration of the deferral period, the entire Fee imposed
pursuant to this chapter shall be immediately due and payable.
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3.54.170 Assessment and special tax districts.
A. If any assessment or special tax district is established for any or all of the Transportation
Facilities listed in Engineer’s Reports, the Developer may apply to the City Council for a Fee
Credit in an amount equal to the Development’s attributable portion of the cost of the
authorized improvements associated with the Transportation Facility as determined by the
City Manager or designee, plus approved incidental costs normally occurring with a
construction project, but excluding costs associated with assessment district proceedings or
financing.
B. Whenever a Fee Credit is generated by constructing a Transportation Facility using
assessment district or special tax district financing, the credit shall only be applied to the Fee
obligations within that district.
3.54.180 Economic incentive credit.
The City Council may authorize the City to participate in the financing of Transportation
Facilities at the time of the appropriation of funds by City Council for the construction of an
eligible Transportation Facility; the City shall be eligible to receive a credit known hereafter as
an “Economic Incentive Credit.” Such Economic Incentive Credit may be applied to Fee
obligations for those Development Projects which the City Council determines, in its sole
discretion, to be beneficial to the City. The use of the Economic Incentive Credit may be subject
to conditions which shall be set forth in a written agreement between the Developer of the
subject Development Project and the City and approved by City Council.
The City shall only receive Economic Incentive Credit for Transportation Facility funding
provided in excess of the funding identified in the most recent Engineer’s Reports.
3.54.190 Fund loans.
A. Loans by the City. The City may loan funds to the Transportation Development Impact Fee
Fund to pay for Transportation Facilities should the Transportation Development Impact Fee
Fund have insufficient funds to cover the cost of planned Transportation Facilities. Said
loans, if granted, shall be approved by resolution of the City Council and shall carry interest
rates pursuant to City Council Policy 220-06 (Interfund Loan Policy) or such other Council
Policies as may be subsequently adopted.
B. Developer Loans. A Developer may loan funds to the City as outlined in CVMC 3.54.140
and 3.54.150. The City may repay said developer loans with interest, under the terms listed in
subsection (A) of this section.
3.54.200 Effective date.
This chapter shall become effective on November 1, 2018.
Section II. Severability
If any portion of this Ordinance, or its application to any person or circumstance, is for
any reason held to be invalid, unenforceable or unconstitutional, by a court of competent
jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or
unconstitutionality shall not affect the validity or enforceability of the remaining portions of the
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Ordinance No. 3440
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Ordinance, or its application to any other person or circumstance. The City Council of the City of
Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase
of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses
or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional.
Section III. Construction
The City Council of the City of Chula Vista intends this Ordinance to supplement, not to
duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in
light of that intent.
Section IV. Effective Date
This Ordinance shall take effect and be in force on the thirtieth day after its final passage.
Section V. Publication
The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause
the same to be published or posted according to law.
[SIGNATURES ON THE FOLLOWING PAGE]
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Ordinance No. 3440
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Presented by Approved as to form by
Kelly G. Broughton, FASLA Glen R. Googins
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 2nd day of October 2018, by the following vote:
AYES: Councilmembers: Diaz, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: Aguilar
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Ordinance No. 3440 had its first reading at a regular meeting held on the 25th day of September
2018 and its second reading and adoption at a regular meeting of said City Council held on the
2nd day of October 2018; and was duly published in summary form in accordance with the
requirements of state law and the City Charter.
Dated Kerry K. Bigelow, MMC, City Clerk
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10/30/2018
EasternTransportationDIF (ETDIF)WesternTransportationDIF (WTDIF)
BayfrontTransportationDIF (BFDIF)
54
805
5
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T D I F B o u n d a r i e s
[0 7000 14000
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Path: P:\Projects\D EVEL OP ME NT_SERVICES\Engineering\DIF\TDIF_BW_Rev.mxd Date: 9/17/201 8 12:56:03 PM
Not a Part
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City of Chula VistaBayfront Transportation DI F (BFDIF)
Eastern Transportation DIF (E TDI F)
Western Transportation DIF (WTDIF)
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