HomeMy WebLinkAboutOrd 2004-2974
ORDINANCE NO. 2974
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE SALT CREEK SEWER
BASIN DEVELOPMENT IMPACT FEE TO PAY FOR SEWER
IMPROVEMENTS WITHIN THE SALT CREEK SEWER
BASIN AS A CONDITION OF ISSUANCE OF BUILDING
PERMITS, AND AMENDING ORDINANCE NO. 2617
WHEREAS, developers ofland within the City should be required to mitigate the burden
created by development through the construction or improvement of sewer facilities within the
boundaries of the development and either the construction or improvement of sewer facilities
outside the boundaries of the development which are needed to provide service to the
development in accordance with City standards or the payment of a fee to finance a
development's portion of the total cost of the public facilities; and
WHEREAS, all development within the City contributes to the cumulative burden on
various sewer 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; and
WHEREAS, the Salt Creek Sewer Basin (Gravity Basin) is that area of land within the
City of Chula Vista and the County of San Diego from which wastewater will flow by gravity
from Salt Creek into the Otay River Valley (which also includes the portion land referred to as
the "Wolf Canyon Basin"). The Otay Lake Basins are those areas of land within the County of
San Diego ITom which wastewater will flow by gravity into the lower and upper Otay Lake
Reservoirs, a portion of which will be pumped into the Gravity Basin. These areas are shown on
the map attached hereto as Exhibit "A", Salt Creek Sewer Study Map; and
WHEREAS, on December 6, 1994, the City Council of the City of Chula Vista adopted
Ordinance No. 2617 establishing a Development Impact Fee to pay for sewer improvements
within the Salt Creek Sewer Basin as a condition of issuance of building permits; and
WHEREAS, City staff has prepared the update to the Salt Creek Sewer Basin Plan
("Report") dated August 2004; and
WHEREAS, the Report has determined that new development within upper and lower
Otay Lake and Salt Creek Basins, including the Wolf Canyon Basin will create adverse impacts
on the City's existing sewer facilities-to wit, that there are no existing sewers which can serve
gravity sewage flows expected to be generated from new development within these basins, which
must be mitigated by the financing and construction of certain sewer facilities identified in this
ordinance; and
WHEREAS, said Report includes an estimate of ultimate sewer flows anticipated from
the Otay Lake and Salt Creek Basins, recommends sewer facilities needed to transport these
flows, including additional facilities known as Rock Mountain Road Trunk Sewer and Heritage
Road Trunk Sewer and establishes a fee payable by persons obtaining building permits for
developments within these basins benefiting from the construction of these facilities; and
WHEREAS, in April and July 2004 public meetings were held with the owners and
developers of properties located within the Gravity Basin to discuss the report and City staff
recommendations for revising the Salt Creek Sewer Basin Development Impact Fee; and
Ordinance 2974
Page 2
WHEREAS, the City's 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; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the
activity is not subject to CEQA. Although environmental review is not necessary at this time,
environmental review has been completed for the Salt Creek Gravity Sewer Interceptor and will
be required for the Wolf Canyon Trunk Sewers prior to the approval of final design plans and the
awarding of the construction contract; and
WHEREAS, on August 17, 2004 a Public Hearing was held before the City Council to
provide an opportunity for interested persons to be heard on the approval of the Report and
revising of the Salt Creek Sewer Basin Development Impact Fee; and
WHEREAS, the City Council determined, based upon the evidence presented at the
Public Hearing, including, but not limited to, the report and other information received by the
City Council in the course of its business, that imposition of the sewer facilities development
impact fee on all developments within the Salt Creek, Wolf Canyon and Otay Lake Basins in the
City of Chula Vista for which building permits have not yet been issued is necessary in order to
protect the public safety and welfare and to ensure effective implementation of the City's
General Plan; and
WHEREAS, the City Council has determined that the amount of the fee levied by this
ordinance does not exceed the estimated cost of providing the public facilities.
NOW, THEREFORE, the City Council of the City ofChula Vista does ordain as follows:
SECTION 1. Environmental Review.
That the activity will have no significant environmental impacts, and therefore is not
subject to the California Environmental Quality Act (CEQA) although environmental review will
be required for the Wolf Canyon Trunk Sewers.
SECTION 2. Approval of Report.
The City Council has independently reviewed the proposed Report herewith presented,
finds that it is fair, reasonable and equitable to all parties, and herewith adopts same in the form
on file with the City Clerk, known as the update to the Salt Creek Sewer Basin Plan, dated
August 2004, a copy of which is on file in the office of the City Clerk and the City Engineer.
SECTION 3. "Facilities".
The facilities which are the subject matter of the fee herein established are fully described
in the Report at page 13, Table 2.4 thereof, and the locations at which they will be constructed
are shown on Exhibit "A", Salt Creek Basin Sewer Study Map, which is included in the Report,
all of which facilities may be modified by the City Council ITOm time to time by resolution
("Facilities"). The City Council may modify or amend the list of projects herein considered to
be part of the Facilities by written resolution in order to maintain compliance with the City's
Capital Improvement Program or to reflect changes in land development and estimated and
actual wastewater flow.
SECTION 4. Territory to Which Fee Is Applicable.
Ordinance 2974
Page 3
The area of the City of Chula Vista to which the Fee herein established shall be
applicable is set forth on Exhibit "A", and is generally described as the Salt Creek Sewer Basin,
that portion of the upper Otay Lake Basin north of the Salt Creek Sewer Basin, Wolf Canyon
Basin and that portion of the lower Otay Lake Basin east of the Salt Creek Sewer Basin.
SECTION 5. Purpose.
The purpose of this ordinance is to provide the necessary financing to cover the costs
associated with and to construct the necessary facilities within the areas shown in Exhibit "A".
SECTION 6. Establishment of Fee.
A Development Impact Fee ("Fee"), to be expressed on a per Equivalent Dwelling Unit
("EDU") basis, and payable prior to the issuance of a building permit for a development project
within the territory, is hereby established.
SECTION 7. Due on Issuance of Building Permit.
The Fee shall be paid in cash upon the issuance of a building permit. Early payment is
not permitted.
SECTION 8. Determination of Equivalent Dwelling Units.
Each single family detached dwelling or single family attached dwelling shall be
considered one EDU for purposes of this Fee. Each unit within a multi-family dwelling shall be
considered 0.75 EDU. Every other commercial, industrial, non-profit, public or quasi-public, or
other usage shall be charged at a rate calculated in accordance with the method for estimating
EDU's set forth in Exhibit "B", EDU Conversion Factors For Financial Analysis, and is included
as Table 5.1 in the Report.
SECTION 9. Time to Determine Amount Due; Advance Payment.
Prohibited. 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 was granted or applied for, or when the building permit plan check was conducted,
or when application was made for the building permit.
SECTION 10. Purpose and Use of Fee.
The purpose of the Fee is to pay for the planning, design, construction and/or financing
(including the cost of interest and other financing costs as appropriate) of the Facilities and
purchase of a maintenance vehicle, or reimbursement to the City or, at the discretion of the City
if approved in advance in writing, other third parties for advancing costs actually incurred for
planning, designing, constructing, or financing the Facilities. Any use of the Fee shall receive
the advance consent of the City Council and be used in a manner consistent with the purpose of
the Fee.
SECTION 11. Amount of Fee; Amendment to the Master Fee Schedule.
The Fee shall be calculated at the rate of $1,330 per EDU. Chapter XVI, Other Fees, of
the Master Fee Schedule is hereby amended to add Section C, which shall read as follows:
Ordinance 2974
Page 4
C. Salt Creek Sewer Basin Development Impact Fee.
This section is intended to memorialize the key provisions of Ordinance No. 2974, but
said ordinance governs over the provisions of the Master Fee Schedule. For example, in the
event of a conflict in interpretation between the Master Fee Schedule and the ordinance, or in the
event that there are additional rules applicable to the imposition of the Fee, the language of the
ordinance govems.
a. Territory to which Fee Applicable.
The area of the City of Chula Vista to which the Fee herein established shall be
applicable is set forth in Exhibit "A" of the Salt Creek Basin Gravity Sewer Analysis
dated November 1994, and is generally described as the Salt Creek Basin, that portion of
the upper Otay Lake Basin north of the Salt Creek Sewer Basin, the Wolf Canyon Basin,
and that portion of the lower Otay Lake Basin east ofthe Salt Creek Sewer Basin.
b. Rate per EDU.
The Fee shall be calculated at the rate of $1,330 per EDU, which rate shall be adjusted
ITom time to time by the City Council.
c. EDU Calculation.
Each single family detached dwelling or single family attached dwelling shall be
considered one EDU for purposes of this Fee. Each unit within a multi-family dwelling
shall be considered 0.75 EDU. Every other commercial, industrial, non-profit, public or
quasi -public, or other usage shall be charged at a rate calculated in accordance with the
method for estimating EDU's set forth in Table 5.1 of the Report.
d. When Payable.
The Fee shall be paid in cash not later than immediately prior to the issuance of a
building permit. The City Council intends to review the amount of the Fee annually or
ITOm time to time. The City Council may, at such reviews, adjust the amount of this fee
as necessary to assure construction and operation of the Facilities. The reasons for which
adjustments may be made include, but are limited to, the following: 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 Cost Index (ENR-CCI); changes in the
type, size, location or cost of the Facilities to be financed by the Fee; changes in land use
on approved tentative maps or Specific Plan Amendments; other sound engineering,
financing and planning information. Adjustments to the above Fee may be made by
resolution amending the Master Fee Schedule.
SECTION 12. Authority for Accounting and Expenditures.
The proceeds collected from the imposition of the Fee shall be deposited into a public
facility financing fund ("Salt Creek Sewer Basin Benefit Area Fee Fund", or alternatively herein
"Fund") which is hereby created and shall be expended only for the purposes set forth in this
ordinance.
The Director of Finance is authorized to establish various accounts within the Fund for
the Facilities identified in this ordinance and to periodically make expenditures ITom the Fund
Ordinance 2974
Page 5
for the purposes set forth herein in accordance with the facilities phasing plan or capital
improvement plan adopted by the City Council.
SECTION 13. Findings.
The City Council finds that collection of the Fees established by this ordinance at the
time of issuance of the building permit is necessary to ensure that funds will be available for the
construction of facilities concurrent with the need for these facilities and to ensure certainty in
the capital facilities budgeting for growth impacted public facilities.
SECTION 14. Fee Additional to other Fees and Charges.
The Fee established by this section 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.
SECTION 15. Mandatory Construction of a Portion of the Facilities; 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 portion of the sewer system which is the subject matter of a
Facilities enhancement planned for improvement under the Basin Plan to be constructed to
accommodate the sewage flow generated by the development, the City may require the developer
to install Facilities according to design specifications approved by the City. Such improvements
shall have the size or capacity necessary to accommodate estimated ultimate flow as indicated in
the Basin Plan and subsequent amendments. If such a requirement is imposed, the City shall
offer to reimburse the developer from the Fund either in cash or over time 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.
SECTION 16. Voluntary Construction of a Portion of the Facilities; Duty of City to Tender
Reimbursement Offer.
If a developer is willing and agrees in writing to design and construct a portion of the
Facilities in conjunction with the prosecution of a development project within the territory, the
City may, as part of the written agreement, grant credits against the Developer's obligation to
pay the Fee, and may thereafter, use the proceeds of the Fund to reimburse the developer from
the Fund either at the time the expenditures are incurred or over time 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 ofthe Fee, and in an amount agreed to in advance of their expenditure in writing by
the City. The City may update the Fee calculation as City deems appropriate prior to making
such offer. This duty to extend credits or offer reimbursement shall be independent of the
developer's obligation to pay the Fee.
SECTION 17. Procedure for Entitlement to Reimbursement Offer.
Ordinance 2974
Page 6
The City's duty to extend a reimbursement offer to a developer pursuant to Section 14 or
15 above shall be conditioned on the developer complying with the terms and conditions of this
section:
a. Written authorization shall be requested by the developer ITom the City and issued by
the City Council by written resolution before developer may incur any costs eligible for
reimbursement relating to the work.
b. The request for authorization shall contain the following information, and such other
information as may ITom time to time be requested by the City:
(I) Detailed descriptions ofthe Work with the preliminary cost estimate.
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 to
the City for approval;
(2) Developer shall secure and dedicate any right-of-way required for the
work;
(3) Developer shall secure all required permits and environmental clearances
necessary for construction of the project;
(4) Developer shall provide performance bonds in a form and amount, and
with a surety satisfactory to the City;
(5) Developer shall pay all City fees and costs.
(6) The City shall be held harmless and indemnified, and upon demand by the
City, defended by the developer for any of the costs and liabilities associated with
the construction of the project.
(7) The developer shall advance all necessary funds to design and construct
the project.
(8) The developer shall secure at least three (3) qualified bids for work to be
done. The construction contract shall be granted to the lowest qualified bidder.
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 work. The estimate is preliminary and
subject to final determination by the Director of Public Works upon completion of
the Public Facility Project.
(10) The agreement may provide that upon determination of satisfactory
incremental completion of a Facility, as approved and certified by the Director of
Public Works, the City may pay the developer progress payments in an amount
Ordinance 2974
Page 7
not to exceed 75 percent of the estimated cost of the construction completed to the
time of the progress payment but shall provide in such case for the retention of
25% of such costs until issuance by the City of a Notice of Completion.
(II) The agreement may provide that any funds owed to the developer as
reimbursements may be applied to the developer's obligations to pay the Fee for
building permits to be applied for in the future.
(12) 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
project to the City. The Director of Public Works shall make the final
determination on expenditures which are eligible for reimbursement.
(13) After final determination of expenditures eligible for reimbursement has
been made by the Public Works Director, the parties may agree to offset the
developer's duty to pay Fees required by this ordinance against the City's duty to
reimburse the developer.
(14) If, after offset if any, funds are due the developer under this section, the
City shall reimburse the developer ITom the Fund either at the time the
expenditures are incurred or over time as Fees are collected, at the option of the
City, for eligible 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; or the developer may waive
reimbursement and use the amount due them as credit against future Development
Impact Fee obligations.
SECTION 18. Procedure for Fee Modification.
Any developer who, because of the nature or type of uses proposed for a development
project, contends that application of the Fee imposed by this ordinance is unconstitutional or
unrelated to mitigation of the burdens of the development, may apply to the City Council for a
modification of the Fee and the manner in which it is calculated. The application shall be made
in writing and filed with the City Clerk not later than ten (10) days after notice is given of the
public hearing on the development permit application for the project, 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, and shall provide an
engineering and accounting report showing the overall impact on the Development Impact Fee
(DIF) and the ability of the City to complete construction of the Facilities by making the
modification requested by the applicant. The City Council shall make reasonable efforts to
consider the application within sixty (60) days after its filing. The decision of the City Council
shall be final. The procedure provided by this section is additional to any other procedure
authorized by law for protection or challenging the Fee imposed by this ordinance.
SECTION 19. Fee Applicable to Public Agencies.
Development projects by public agencies, including schools, shall not be exempt ITom the
provisions of the Fee.
SECTION 20. Assessment District.
Ordinance 2974
Page 8
If any assessment or special taxing district is established to design, construct and pay for
any or all of the Facilities ("Work Alternatively Financed"), the owner or developer of a project
may apply to the City Council for reimbursement from the Fund in an amount equal to that
portion of the cost included in the calculation of the Fee attributable to the work alternatively
Financed. In this regard, the amount of the reimbursement shall be based in the costs included in
the Basin Plan, as amended from time to time, and therefore, will not include any portion of the
financing costs associated with the formation of the assessment or other special taxing district.
SECTION 21. Expiration of this Ordinance.
This ordinance shall be of no further force and effect when the City Council determines
that the amount of Fees which have been collected reaches an amount equal to the cost of the
Facilities.
SECTION 22. Time Limit for Judicial Action.
Any judicial action or proceeding to attack, review, set aside, void or annul this ordinance
shall be brought within the time period as established bylaw after the effective date of this
ordinance.
In accordance with Government Code Section 66020(d)(1), the ninety-day approval
period to which parties may protest begin upon the effective date ofthis ordinance.
SECTION 23. Other Not Previously Defined Terms.
For the purposes of this ordinance, the following words or phrases shall be construed as
defined in this section, unless ITom 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 in
Section 65927 and 65928 of the State Government Code.
(e) "Single Family Attached Dwelling" means a single family dwelling attached to
another single family dwelling, with each dwelling on its own lot.
SECTION 24. Effective Date.
This ordinance shall become effective sixty (60) days after its second reading and
adoption.
Ordinance 2974
Page 9
Presented by
Approved as to formby
~~
Ann Moore
City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 24th day of August, 2004, by the following vote:
AYES;
Councilmembers:
Davis, McCann, Rindone, Salas and Padilla
NAYS;
Councilmembers:
None
ABSENT;
Councilmembers:
None
ATTEST:
- (1.11. .- ~O..... .)
Susan Bigelow, MMC, City lerk
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. 2974 had its first reading at a regular meeting held on the 17th day of August,
2004 and its second reading and adoption at a regular meeting of said City Council held on the
24th day of August, 2004.
Executed this 24th day of August, 2004.
-.::: ÌL.L~I~~
Susan Bigelow, MMC, City Cle
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EXHIBIT B
Residential - SFD
Residential - MFD
Commercial/Industrial
Hi School
Junior Hi School
Elementar
Park
CPF
1.00/DU
0,75/DU
9.43/acre
0,08/student
O.08/student
O,06/student
1. 89/acre
9.43/acre
gpd: gallon per day
SFD: single-family dwelling
DU: dwelling unit
MFD: multi-farrrily dwelling
CPF: community-purpose facility