HomeMy WebLinkAboutOrd 2004-2974-C
ORDINANCE NO. 2974-C
URGENCY 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 of land 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 from 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 ofthese facilities; and
Ordinance 2974-C
Page 2
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
WHEREAS, the updated development impact fee should go into effect immediately in
order that all developers pay their fair share ofthe cost of the sewer improvements relating to the
impacts caused by their development; and
WHEREAS, immediate implementation of the Development Impact Fee (DIF) update is
necessary due to the current and immediate threat to public safety, which will result should there
be a deficit in the budget to finance the Wolf Canyon Trunk Sewers in a timely manner.
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 l5060(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 ofthe 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; and
WHEREAS, the Second Urgency Ordinance, 2974-B, revising of the Salt Creek Sewer
Basin Development Impact Fee, was adopted on September 14,2004 at said Public Hearing by
the City Council and will expire on October 14,2004.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES
ORDAIN AS FOLLOWS:
SECTION I. Environmental Review.
That the activity will have no significant environmental impacts, and therefore is not
subject to the CEQA although environmental review will be required for the Wolf Canyon Trunk
Sewers.
SECTION 2. Finding of Urgency.
Ordinance 2974-C
Page 3
That the City Council of the City of Chula Vista fmds that it is necessary that its Salt
Creek Development Impact Fee (DIF) be amended and go into effect immediately in order that
all developers pay their fair share of the cost of the sewer relating to the impacts caused by their
development. Immediate implementation of the DIF update is necessary due to the current and
immediate threat to public safety, which will result, should there be a deficit in the budget to
finance the Wolf Canyon Trunk Sewers in a timely manner. This could result in the overloading
of adjacent sewer systems, which could compromise the City's ability to serve the increasing
population in the Eastern Territories. The prospect of a deficit, overloading of adjacent sewer
systems and concerns about an increased charge to remaining property owners constitutes a
current and immediate thereat to the public health, welfare and safety justifying an immediate
implementation of this fee.
SECTION 3. 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 4. "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 from 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 5. Territory to Which Fee Is Applicable.
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 nor[th 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 6. 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 7. 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 8. 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.
Ordinance 2974-C
Page 4
SECTION 9. 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
EDUs set forth in Exhibit "B", EDU Conversion Factors For Financial Analysis, and is included
as Table 5.1 in the Report.
SECTION 10. 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 11. 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 12. Amount of Fee; Amendment to the Master Fee Schedule.
The Fee shall be calculated at the rate of $1,330 per EDU. Chapter XVI, Other Fees, of
the Master Fee Schedule is hereby amended to add Section C, which shall read as follows:
"c. Salt Creek Sewer Basin Development Impact Fee.
This section is intended to memorialize the key provisions of Ordinance No. 2974, but
said ordinance governs over the provisions of the Master Fee Schedule. For example, in the
event of a conflict in interpretation between the Master Fee Schedule and the ordinance, or in the
event that there are additional rules applicable to the imposition of the Fee, the language of the
ordinance governs.
a. Territory to which Fee Applicable.
The area of the City of Chula Vista to which the Fee herein established
shall be applicable is set forth in Exhibit "A" of the Salt Creek Basin Gravity
Sewer Analysis dated November 1994, and is generally described as the Salt
Creek Basin, that portion of the Upper Otay Lake Basin north of the Salt Creek
Sewer Basin, the Wolf Canyon Basin, and that portion of the Lower Otay Lake
Basin east of the Salt Creek Sewer Basin.
b. Rate per EDU.
The Fee shall be calculated at the rate of$I,330 per EDU, which rate shall
be adjusted from time to time by the City Council.
I
~
Ordinance 2974-C
Page 5
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 EDUs 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 from 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 13. 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 from the Fund
for the purposes set forth herein in accordance with the facilities phasing plan or capital
improvement plan adopted by the City Council.
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
Ordinance 2974-C
Page 6
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 of the 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.
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 from 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 from time to time be requested by the City:
(I) Detailed descriptions of the 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;
Ordinance 2974-C
Page 7
(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 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 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 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.
Ordinance 2974-C
Page 8
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 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 from the
provisions of the Fee.
SECTION 20. Assessment District.
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 in full force and effect thirty (30) days after its adoption.
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)(I), the ninety-day approval
period to which parties may protest begin upon the effective date of this 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 from the context it appears that a different meaning is intended.
---~--~
Ordinance 2974-C
Page 9
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 immediately upon 4/5ths vote.
Presented by
Approved as to form by
J~ffi~
Ge Services Director
Ordinance 2974-C
Page 10
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 12th day of October, 2004, by the following vote:
AYES:
Councilmembers:
Davis, McCann, Salas and Padilla
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
Rindone
ATTEST:
--- ~ JJ tV....:J ~i: 1 .....
Susan Bigelow, MMC, City Cl k
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-C was passed as an urgency measure on the 12th day of October, 2004.
Executed this 12th day of October, 2004.
-- ~.J.J IS..... ~'&,.j e
Susan Bigelow, MMC, City C rk
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EXHIBIT B
Residential - SFD
Residential- MFD
Commercial/Industrial
Hi h School
Junior Hi School
Elernentar
Park
CPF
gpd: gallon per day
SFD: single· family dwelling
1.00/DU
0.75/DU
9.43/acre
0.08/student
0.08/student
0.06/student
1. 89/acre
9.43/acre
DU: dwelling unit
MFD: multi.farni1y dwelling
CPF: community-purpose facility