HomeMy WebLinkAboutOrd 2006-3050
ORDINANCE NO. 3050
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
CHAPTER 3.50 OF THE CHULA VISTA MUNICIPAL CODE
RELATING TO DEVELOPMENT IMPACT FEES TO PAY FOR
VARIOUS PUBLIC FACILITIES WITHIN THE CITY OF
CHULA VISTA
WHEREAS, on January 8th, 1991, the City Council of the City of Chula Vista adopted
Ordinance No. 2432, establishing the Public Facilities Development Impact Fee (PFDIF or
Impact Fee); and
WHEREAS, on June 14th, 2005, the City Council of the City of Chula Vista adopted
Ordinance No. 3010, increasing the PFDIF from $5,048 to $5,480 per single family dwelling
unit; and
WHEREAS, cost estimates for the current list of needed public facilities have been
updated; and
WHEREAS, PFDIF allocation factors have been recalculated using General Plan Fiscal
Impact Model analysis; and
WHEREAS, the Impact Fee is solely based upon that portion of the project costs which
are attributable to new development; and
WHEREAS, the fee increase was developed in conjunction with developers and the
Building Industry Association (BIA); and
WHEREAS, development is considered to take place in accordance with the Phasing
Plan established by the City's Planning Department, which is subject to change depending on
actual development phasing; and
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.
NOW, THEREFORE, BE IT ORDAINED, that the City Council of the City Of Chula
Vista does hereby adopt and amend Chapter 3.50 of the Chula Vista Municipal Code relating to
development impact fees to pay for various public facilities as follows:
SECTION I: Findings
The City Council finds, after consideration of the evidence presented to it including the "Public
Facilities Development Impact Fee, March 2006 Update," that certain amendments to Chapter
3.50 of the Chula Vista Municipal Code are necessary in order to assure that there are sufficient
funds available to finance the public facilities necessary to serve new development within the
City of Chula Vista by the development impact fee; and
Ordinance No. 3050
Page 2
The City Council finds, based on the evidence presented at the public hearing, and consistent
with the City's General Plan, that the imposition of public facility impact fees on all development
within the City of Chula Vista for which building permits have not been issued is necessary in
order to protect the public health, safety and welfare by providing for the public facilities and
services to assure effective implementation of the City's General Plan; and
The City Council finds that the amount of the amended fees levied by this ordinance does not
exceed the estimated cost of providing the public facilities.
SECTION 2: That the existing Ordinance Nos. 2432, 2320, 2554, 2810, 2855 and 2886 are
hereby superseded, and Chapter 3.50 of the Chula Vista Municipal Code is amended to read as
follows:
3.50.010 General intent.
The City's general plan land use and public facilities elements require that adequate public
facilities be available to accommodate increased population created by new development within
the City of Chula Vista.
The City Council 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 public facilities which are the subject of this chapter. New
development contributes to the cumulative burden on these public facilities in direct relationship
to the amount of population generated by the development or the gross acreage of the
commercial or industrial land in the development.
The City Council of the City of Chula Vista has determined that a reasonable means of financing
the public facilities is to charge a fee on all developments in the City of Chula Vista. Imposition
of the public facilities development impact fee on all new development for which building
permits have not yet been issued is necessary in order to protect the public safety and welfare,
thereby ensuring effective implementation of the City's general plan. (Ord. 2887 S 1,2002).
3.50.020 Definitions.
For the purposes of this chapter, the following words or phrases shall be construed as defined in
this section, unless from the context it appears that a different meaning is intended:
A. "Building permit" means a permit required by and issued pursuant to the Uniform
Building Code, as adopted by reference by this City.
B. "Developer" means the owner or developer of a development.
C. "Development permit" means any discretionary permit, entitlement or approval for a
development project issued under any zoning or subdivision ordinance ofthe City.
D. "Development project" or "development" means any activity described as the following:
I. Any new residential dwelling unit developed on vacant land;
Ordinance No. 3050
Page 3
2. Any new commercial/office or industrial development constructed on vacant land;
3. Any expansions to established developments or new developments on nonvacant
land in those land use categories listed in subsections (D)(l) and (2) of this
section, if the result is a net increase in dwelling units. The fee shall be based
solely on this net dwelling unit increase;
4. Any new or expanding special land use project;
5. Any special purpose project developed on vacant land or nonvacant land, or
expanded within a pre-existing site, if the result is a net increase in dwelling units.
The fee shall be based solely on this net dwelling unit increase;
6. Any other development project not listed above but described in Section 65927
and 65928 of the State Government Code.
E. "Community purpose facility" means a facility which serves one of the following
purposes:
I. Social 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;
3. Private schools;
4. Day care;
5. Senior care and recreation;
6. Worship, spiritual growth and development.
F. "Special land use" means any nonresidential, non-commercial/office or nonindustrial
development project (e.g., Olympic Training Center, hospitals, utilities), or non-special
purpose proj ect.
G. "Special purpose project" means any for-profit community purpose facility (e.g., day
care) .
H. "Engineer report" refers to the April 20, 1993, "development impact fees for public
facilities" report.
I. "Extraordinary project cost increases" means increases resulting from costs that could not
have been reasonably foreseen at the time a project budget was established.
J. "Extraordinary dwelling unit change" means an increase or decrease in the number of
remaining planned residential dwelling units or commercial/industrial acres for which
building permits have not yet been pulled, which changes the existing total by more than
2,000 dwelling units or 200 commercial/industrial acres. (Ord. 2887 9 1,2002).
3.50.030 Public facilities to be financed by the fee.
A. The public facilities (facilities), which are the subject matter of the fee, include buildings,
equipment and related one-time start-up costs or portions thereof, as detailed in
subsection (C) of this section and in the engineer report on file in the Office of the City
Clerk.
Ordinance No. 3050
Page 4
B. The City Council ofthe City of Chula Vista may modify or amend this list offacilities by
written resolution in order to maintain compliance with the City's general plan or the
capital improvement program.
C. The facilities are as follows:
I. Civic Center expansion;
2. Police department facilities and equipment;
3. Corporation yard relocation/expansion;
4. Library system expansion;
5. Fire suppression system expansion;
6. ** Geographic information system expansion;
7. ** Computer system expansion;
8. ** Telecommunication system expansion;
9. ** Records management system expansion;
10. Major recreation facilities (community centers, gymnasiums, swimming
pools). (Ord, 2887 S 1,2002).
**Facility projects are complete. No future projects will be added.
3.50.040 Territory to which fee applicable.
The area of the City of Chula Vista to which the fee herein established shall be applicable shall
be the territorial limits of the City of Chula Vista (territory), as they may from time to time be
amended. (Ord. 2887 S I, 2002).
3.50.050 Establishment of fee.
A development impact fee (fee) is hereby established to pay for the facilities within the territory.
The fee shall be paid upon the issuance of building permits for each development project within
the City of Chula Vista, except that, at the discretion of the City Manager, a developer may
prepay all or part of Civic Center expansion fees that would be applicable to the developer's
future development projects. Prepayment would occur at the then current rate; however, the
developer has sole responsibility for paying subsequent fee increases resulting from (I)
extraordinary project cost increases, or (2) normal annual adjustments in the Consumer Price
Index (CPI) or Building Construction Index (BCI), or (3) extraordinary dwelling unit changes.
(Ord. 2887 S I, 2002).
3.50.060 Determination of fees by land use category.
For purposes of this fee, single-family dwelling units shall include single-family detached homes
and detached condominiums; multifamily dwelling units shall include attached condominiums,
townhouses, duplexes, triplexes, and apartments. Commercial/office and industrial development
projects shall be charged on a per acre basis. Development impact fees for single-family,
multifamily, commercial and industrial land uses shall be based on the demand for service
generated by that land use, for each public facility set forth in CVMC 3.50.030:
Ordinance No. 3050
Page 5
Service Demand Generated by Land Use
Public Facility Single-Family Multifamily Commercial Industrial
Dwelling Unit Dwelling Unit Acre Acre
Police department facilities .150 .747 .075 .028
and equipment
Corporation yard .125 .465 .228 .182
relocation/expansion
Library system expansion .178 .822 .000 .000
(residential only)
Fire suppression system .212 .707 .060 .020
expansIOn
Major recreation facilities .178 .822 .000 .000
(residential only)
General Government
Civic Center expansion .169 .742 .058 .031
Administration .169 .742 .058 .031
The rate for each special land use development project, as defined in CVMC 3.50.020, shall be
equivalent to the commercial/office rate per gross acre of land. The Olympic Training Center
shall be equivalent to the industrial rate per gross acre of land. The rate for each special purpose
project, as defined in CVMC 3.50.020, shall be equivalent to one-half the commercial/office rate
per gross acre of land. The charges shall be those outlined in CVMC 3.50.090(C). The fee
multiplied by the total number of dwelling units or acres within a given development project
represents a developer's fair share (fair share) for that development project. (Ord. 2887 S I,
2002).
3.50.070 Time to determine amount due.
The fee for each development shall be calculated at the time of building permit issuance and
shall be the amount as indicated at that time, and not when the tentative map or final map were
granted or applied for, or when the building permit plan check was conducted, or when
application was made for the building permit, except that a developer of a development project
providing low- and/or moderate-income housing in accordance with Section III, Objective 1 of
the 1991 housing element of the general plan may request authorization to prepay or defer the fee
for up to 500 equivalent dwelling units (EDUs) and said request may be approved at the sole
discretion of the City Manager. In order to facilitate those low- and/or moderate-income projects
which are planned for construction through March 24, 2005, the fee for said projects shall be the
fee existing as of March 25, 2002. (Ord. 2887 S 1,2002).
3.50.080 Purpose and use offee.
The fee collected shall be used by the City for the following purposes, in such order and at such
time as determined by the City Council:
Ordinance No. 3050
Page 6
A. To pay for such of the facilities that the City Council determines should be constructed,
installed or purchased at that time, or to reimburse the City for facilities funded by the
City from other sources.
B. To reimburse developers who have been required or permitted by CYMC 3.50.140(A) to
construct, install or purchase approved facilities listed in CYMC 3.50.030(C), in such
amounts as the Council deems appropriate.
C. To repay any and all persons who have, pursuant to prior fee Ordinance Nos. 2320 or
2432, or pursuant to this chapter, advanced or otherwise loaned funds for the construction
of a facility identified herein.
D. To repay the City for administration costs associated with administration of the fee. (Ord.
2887 S I, 2002).
3.50.090 Amount of fee.
A. The fee shall be the amounts set forth in subsections (B) and (C) of this section. The fee
shall be adjusted, starting on October I, 2005, and on each October I st thereafter, based
on the following two indexes:
For the Civic Center expansion, libraries, fire suppression and major recreation facilities:
the Engineering News Record, Building Construction Cost Index for the Los Angeles
Area.
For the police, corporation yard, geographic information systems, computer systems,
telecommunications systems, records management and administration components: The
U.S. Department of Labor, Bureau of Labor Statistics (San Diego Metropolitan Statistical
Area).
Adjustments of the fee based upon armual changes to these two indexes shall be
automatic and shall not require further action by the City Council. The PFDIF may also
be reviewed and amended by the City Council as necessary based on changes in the type,
size, location or cost of the facilities to be financed by the fee; changes in land use
designation in the City's general plan; and upon other sound engineering, financing and
plarming information. Adjustments to the fee resulting from these discretionary reviews
may be made by resolution amending this section.
B. The fee shall have portions which are, according to the engineer report, allocated to a
specific facility (fee components), which correspond to the costs of the various facilities,
plus the administration cost for the fee.
Ordinance No. 3050
Page 7
C. The fee shall be the following, depending on the land use:
Land Use Fee
Residential - Single-family $7,891/DU
dwellings
Residential - Multifamily $7,477/DU
dwellings
Commercial/Office $25,181/acre
Industrial $7,958/acre
Special land use $25,1 81/acre
Olympic Training Center $7,958//acre
Public purpose Exempt
Nonprofit community purpose Exempt
facility
Special purpose project $12,590/acre
(Ord. 3010 S 1,2005; Ord. 2887 S 1,2002).
3.50.100 Development projects exempt from the fee.
A. Development projects by public agencies shall be exempt from the provisions of the fee if
those projects are designed to provide the public service for which the agency is charged
(public purpose).
B. Community purpose facilities which are not operated for profit (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 fee. 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 fee. In the event that a court determines that the exemption herein extended
to community purpose facilities shall for any reason be invalid, the City Council hereby
allocates the 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 which are additions or expansions to existing dwelling units or
businesses, except special land use projects, shall be exempt if the addition or expansion
does not result in a net increase in dwelling units or commercial/industrial acreage. (Ord.
2887 S 1, 2002).
Ordinance No. 3050
Page 8
3.50.110 Authority for accounting and expenditures.
A. Fees Collected Before the Effective Date of the Ordinance Codified in This Chapter.
1. All fees which have accrued shall remain in separate accounts (accounts)
corresponding to the facilities listed in CVMC 3.50.030, as established by the
Director of Finance, and shall only be expended for the purposes associated with
each facility account.
2. The Director of Finance is authorized to maintain accounts for the various
facilities identified in this chapter and to periodically make expenditures from the
accounts for the purposes set forth herein.
B. Funds Collected On or After the Effective Date of the Ordinance Codified in This
Chapter.
I. The fees collected shall be deposited into a public facility financing fund (public
facilities development impact fee fund, or alternatively herein "fund"), which is
hereby created and shall be expended only for the purposes set forth in this
chapter.
2. The Director of Finance is authorized to establish a single fund for the various
facilities identified in this chapter and to periodically make expenditures from the
fund for the purposes set forth herein. (Ord. 2887 9 I, 2002).
3.50.120 Findings.
The City Council of the City of Chula Vista finds that collection of the fee established by this
chapter at the time of the building permit issuance is necessary to provide funds for the facilities
and to ensure certainty in the capital facilities budgeting for growth impacted public facilities.
(Ord. 2887 9 I, 2002).
3.50.130 Fee additional to other fees and charges.
This fee is in addition to the requirements imposed by other City laws, policies or regulations
relating to the construction or the financing of the construction of public improvements within
subdivisions or developments. (Ord. 2887 9 1,2002).
3.50.135 Mandatory oversizing of facility - Duty to tender reimbursement offer.
Whenever a developer of a development project is required as a condition of approval of a
development permit to cause a facility or a portion of a facility to be built to accommodate the
demands created by the development project, the City may require the developer to install,
purchase or construct the facility according to design specifications approved by the City, that
being with such supplemental size or capacity required by the City (oversized capacity
requirement). If such an oversized capacity requirement is imposed, the City shall offer to
reimburse the developer from the fund either in cash or over time, with interest at the fair market
value of money, as fees are collected, at the option of the City, for costs incurred by the
developer for the design and construction of the facility, not to exceed the estimated cost of that
particular facility as included in the calculation and updating of the fee. The City may update the
fee calculation as the 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. (Ord. 2887 9 I,
2002).
Ordinance No. 3050
Page 9
3.50.140 Developer construction offacilities.
A. Whenever a developer of a development project would be required by application of City
law or policy as a condition of approval of a development pennit to construct or finance a
facility, or if a developer proposes to design and construct a portion of a facility in
conjunction with the prosecution of a development project within the territory, and
follows the procedure for doing same hereinbelow set forth, the City Council shall, in the
following applicable circumstances, tender only the credit or reimbursement hereinbelow
identified for that circumstance:
1. If the cost of the facility, incurred by the developer and acceptable to the City, is
less than or equal to that portion of the developer's fair share related to the fee
component for that facility, the City may only give a credit (developer credit)
against that portion of the developer's fair share related to the fee component for
that facility (fair share of the fee component); or
2. If the cost of the facility, incurred by the developer and acceptable to the City, is
greater than that portion of the developer's fair share related to the fee component
for that facility, but less than or equal to the developer's total fair share, the City
may give a credit, which credit shall first be applied against that portion of the fair
share related to the fee component for that facility, and the excess costs for the
facility shall then be applied as credits against such other fee components of the
developer's total fair share as the City Manager, in his sole and unfettered
discretion, shall determine; or
3. Ifthe cost of the facility, incurred by the developer and acceptable to the City, is
greater than the developer's total fair share, the City may give a credit against the
developer's total fair share as the City Manager, in his sole and unfettered
discretion, shall determine; and/or the City may tender to the developer a
reimbursement agreement to reimburse said developer only from the fund as
moneys are available, over time, with interest at the fair market value of money,
at the option of the City.
B. Unless otherwise stated herein, all developer credits shall be calculated on a dollar basis
and converted into dwelling units at the time building permits are pulled, based on the
then-current fee. (Ord. 2887 ~ 1, 2002).
3.50.150 Procedure for issuance of credits or tender of reimbursement offer.
The City's extension of credits or tender of a reimbursement offer to a developer pursuant to
CVMC 3.50.140 shall be conditioned on the developer complying with the terms and conditions
of this section:
A. Written authorization shall be requested by the developer from the City and issued by the
City Council by written resolution before developer may incur any costs eligible for
reimbursement relating to the facility.
Ordinance No. 3050
Page 10
B. The request for authorization shall contain the information listed in this section and such
other information as may from time to time be requested by the City.
C. If the council grants authorization, it shall be by written agreement with the developer,
and on the following conditions among such other conditions as the council may from
time to time impose:
D.
I. Developer shall prepare all plans and specifications and submit same for approval
by the City;
2. Developer shall secure and dedicate any right-of-way required for the facilities;
3. Developer shall secure all required permits and environmental clearances
necessary for construction of the facilities;
4. Developer shall provide performance bonds in a form and amount and with a
surety satisfactory to the City (where the developer intends to utilize provisions
for immediate credit, the performance bond shall be for 100 percent of the value
of the project);
5. Developer shall pay all City fees and costs;
6. The City shall be held harmless and indemnified, and upon tender by the City,
defended by the developer for any of the costs and liabilities associated with the
construction of the facilities;
7. The City will not be responsible for any of the costs of constructing the facilities.
The developer shall advance all necessary funds to construct the facilities;
8. The developer shall secure at least three qualified bids for work to be done. The
construction contract shall be granted to the lowest qualified bidder. If qualified,
the developer may agree to perform the work at a price equal to or less than the
low bid. Any claims for additional payment for extra work or charges during
construction shall be justified and shall be documented to the satisfaction of the
director of public works;
9. The developer shall provide a detailed cost estimate which itemizes those costs of
the construction attributable to the facilities and exclude any work attributable to a
specific subdivision project. The estimate is preliminary and subject to final
determination by the director of public works upon completion of the facilities;
10. The City may grant partial credit for costs incurred by the developer on the
facility upon determination of satisfactory incremental completion of the facility,
as approved and certified by the director of public works, in an amount not to
exceed 75 percent of the cost of the construction completed to the time the partial
credit is granted, thereby retaining 25 percent of such credits until issuance by the
City of a notice of completion;
Ordinance No. 3050
Page II
II. When all work has been completed to the satisfaction of the City, the developer
shall submit verification of payments made for the construction of the facility to
the City. The director of public works shall make the final determination on
expenditures which are eligible for credit or reimbursement. (Ord. 2887 S I,
2002).
3.50.155 Developer transfer of credits.
A developer who, in accordance with the provisions of CVMC 3.50.140 and 3.50.150, receives
credits against future payments of the fee for one or more fee components may transfer those
credits as provided herein to another developer.
A. The developer shall provide the City with written notice of such transfer within 30 days.
The notice shall provide the following information:
I. The name of the developer to whom the credits were transferred;
2. The dollar value ofthe transferred credits;
3. The fce component(s) against which the credits will be applied; and
4. The projected rate, by fiscal 'year, that the credits will be applied, until said credits
have been fully redeemed.
B. Credits received by a developer of a low-and/or moderate-income project in accordance
with CVMC 3.50.070 can only be transferred to another low-and/or moderate-income
development project. (Ord. 2887 S I, 2002).
3.50.160 Procedure for fee modification or reduction.
Any developer who, because of the nature or type of uses proposed for a development project,
contends that application of this fee is unconstitutional or unrelated to mitigation of the burdens
of the development may apply to the City Council for a modification or reduction of the fee. The
application shall be made in writing and filed with the City Clerk not later than 10 days after
notice of the public hearing on the development permit application for the project is given, or if
no development permit is required, at the time of the filing of the building permit application.
The application shall state in detail the factual basis for the claim of modification or reduction.
The City Council shall make reasonable efforts to consider the application within 60 days after
its filing. The decision of the City Council shall be final. If a reduction or modification is
granted, any change in use within the project shall subject the developer to payment of the fee.
The procedure provided by this section is additional to any other procedure authorized by law for
protection or challenging this fee. (Ord. 2887 S I, 2002).
3.50.170 Fund loans.
A. Loans by the City. The City may loan funds to the fund to pay for facilities should the
fund have insufficient funds to cover the cost of said facility. Said loans, if granted, shall
be approved upon the adoption of the annual City budget and shall carry interest rates as
set by the City Council for each fiscal year. A schedule for repayment of said loans shall
be established at the time they are made and approved by the Council, with a maximum
term not to exceed the life of the fund.
Ordinance No. 3050
Page 12
B. Developer Loans. A developer may loan funds to the City as outlined in CVMC 3.50.140
and 3.50.150. The City may repay said developer loans with interest, under the terms
listed in subsection (A) of this section. (Ord. 2887 S 1,2002).
3.50.180 Effective date.
This chapter shall become effective sixty (60) days following its second reading and adoption.
(Ord. 2887 S 1,2002).
SECTION 3:
This chapter shall become effective sixty (60) days following its second reading and adoption.
Presented by
Approved as to form by
~v'*'" ~
Edward Van Eenoo
Budget and Analysis Director
~~~
Ann Moore
City Attorney
Ordinance No. 3050
Page 13
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 7th day of November 2006, by the following vote:
AYES: Councilmembers:
Chavez, McCann, and Padilla
NA YS: Councilmembers:
None
ABSENT: Councilmembers:
None
ABSTAIN: Councilmembers:
Castaneda, Rindone
4~:-
ATTEST:
-~J 1 ti..LJ~ IJ ,0---"
Susan Bigelow, MMC, City . 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. 3050 had its first reading at a regular meeting held on the 24th day of October,
2006 and its second reading and adoption at a regular meeting of said City Council held on the
7th day of November 2006.
Executed this 7th day of November 2006.
r-~~ o. ~
-,--- ~lG..t ~
Susan Bigelow, MMC, City Cle