HomeMy WebLinkAbout2009/04/07 Item 7
CITY COUNCIL
AGENDA STATEMENT
~! 'f:. CITY OF
...... - (HULA VISTA
4/7/08, Item 1-
ITEM TITLE: ORDINANCE OF THE CITY OF CHULA VISTA AMEt-.TDING
TITLE 17, SECTION 17.10.100 OF THE CHULA VISTA
MTJ"NICIPAL CODE TO FACILITATE THE DEFERRAL OF IN-
LIEU PARK. FEES
SUBMITTED BY: DEPUTY CITY rv1At~AGE~IRECTOR OF DEVELOPMENT
SERVICES
REVIEWED BY:
CITYMANAGERr-
4/STHS VOTE: YES 0 NO [gJ
SUMt'1ARY .
On December 16, 2008, City Council approved the creation of a payment plan program for development
processing and impact fees due to t..he current economic do\Vntum. This action would allow developers
to also defer Park Acquisition and Development fees to a time later than the approval and recordation
of the parcel or fmal map, or for development that does not require a parcel or fmal map, later than
permit issuance. The purpose of the fee deferral program is for the purpose of stimulating. economic
development \Vithin the City of Chula Vista. Both fee deferral programs \vill expire on December 31,
2010 and in no way relieve developers from fee obligations.
Ei"l'VIRONMENTAL REVIEW
The 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
defmed under Section 15378 (b)(4) of the State CEQA Guidelines because the proposal involves a
fiscal activity which does not involve any commitment to any specific project which may result in a
potentially significant physical impact on the environment. Therefore, pursuant to Section 15060( c)(3)
of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is
necessary.
RECOMMENDATION
Council approve the Ordinance amending Title 17.10 of the Municipal Code (Parklands and Public
Facilities), first reading, to take effect and be in full force 30 days after the second reading and
adoption.
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DISCUSSION
The City currently collects Park Acquisition and Development ("PAD") fees pursuant to Section
17.10 of the Municipal Code, which requires that fees be paid at the approval and recordation of
parcel or final map, unless a parcel or fmal map is not required for the development, in which case
the fees are paid at building permit issuance. The proposed changes under consideration consist of
the following:
1. To allow all developers who formerly were required to pay PAD fees at the time of parcel or
final map approval and recordation to pay the fees at the time of building permit issuance.
2. To allow those developers who have a demonstrated economic hardship, as determined by
the City Manager, to further delay the payment of PAD fees after the issuance of building
permits. This class of developers will be required to enter into an agreement with the City
Manager wherein the terms of the payment are stipulated. All such agreements shall be
secured with a lien on the developer's property and all staff time associated with preparing
the agreement shall be borne by the developer. Developers entering into a payment
agreement will be subject to the fees in effect at the time the agreement is entered into.
3. Developers who have previously paid PAD fees will not be provided refunds as the funds
have either been programmed or are required for the construction of planned parks.
4. Any park acreage to be dedicated to the City will still be irrevocably dedicated at the time of
the final map approval.
The payment of PAD fees is a substantial commitment for most development projects. As a result
of the current market downturn and the continued tightening of the credit market, there is a
perceived burden created by "frontloading" fees. The current method of collecting PAD fees at
parcel or fmal map approval and recordation was established in order to enable park contracts to be
let prior to the last building permit being issued. This provides for the delivery of parks prior to the
last building permit being issued, a strategy that can make it possible to open a new park at the time
when new homes become occupied. However, in light of the current market conditions, both
residential and park development have been impacted. In order to stimulate both residential and
park development, a temporary change in this practice is recommended during the period of
economic downturn. The applicability of this amendment will be limited to the anticipated period
of the current market slump and will expire on December 31, 2010.
The City updates PAD fees October 1 ,t of every year to account for construction price changes.
Developers will be required to pay the amount of the PAD in effect at the time the fee is paid,
unless the payment is deferred to a time after the issuance of a building permit. In this instance, the
developer will be subject to the fees in effect at the time the payment agreement is entered into.
Interest will be charged on the deferred fees for the period of deferral. This will ensure that the City
will collect enough funds to complete the facilities identified in the Parks Master Plan.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site
specific and consequently the 500 foot rule found in California Code of Regulations section
1 8704.2(a)(1) is not applicable to this decision.
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Page 3 of3
FISCAL IMPACT
Approval of the Ordinance has no General Fund impact because staff time associated with
processing agreement and liens will be paid for by the developer. Approval of the ordinance may
impact the Park Acquisition and Development (PAD) fund and associated project phasing. The
deferral of fees to building permit issuance is anticipated to impact project phasing only, not the
total fees recovered. Any agreements entered into between the City and developers for deferral
beyond building permit issuance would not be subject to fee increases occurring in the interim;
however, would be subject to interest, which would accrue on the fees deferred. As the fees
deferred would be subject to interest there would be no impact on the total fees collected.
ATTACHMENTS
Proposed ordinance amendment text.
Prepared by: Tom Adler, Development Ser;ices Department
c: IDocuments and Settings Itoma lAiy DocumentslPADIPad deferral" I O. doc
7-3
ORDINANCE NO.
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
TITLE 17, SECTION 17.10.100 OF THE CHULA VISTA
MUNICIPAL CODE TO FACILITATE THE DEFERRAL OF
IN-LIEU PARK FEES
WHEREAS, the City of Chula Vista is desirous of both assisting economic
development and providing parklands for the community, and;
WHEREAS, currently, in-lieu park fees ("PAD fees") are collected prior to the
recordation of a final map or parcel map or for development that does not require a final
map or parcel map, at the time of permit issuance; and
WHEREAS, the existing requirements related to the timing of the collection of
PAD fees has been identified as a possible impediment to development; and
WHEREAS, in those situations where the PAD fees are not necessary for the
public health or welfare, a deferral in the collection of such fees would not harm the City
or its ability to provide its citizens and communities with the Parks they need; and
WHEREAS, the deferral of PAD fees will also provide developers with relief from the
upfront capital requirements, so that they may begin pulling building permits; and
WHEREAS, on December 16, 2008, the City Council approved an ordinance for
the deferral of certain development impact fees and other feesP associated with
development due to the economic downturn; and
WHEREAS, similarly, in order to permit the deferral of the collection of PAD fees,
the City must amend its Municipal Code by adopting an ordinance; and
WHEREAS, the City desires to limit the applicability of such deferred payments of PAD
fees to those final maps, parcel maps approved and recorded and those permits issued
after the adoption of this Ordinance
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA
DOES ORDAIN AS FOLLOWS:
7-4
THAT CHULA VISTA MUNICIPAL CODE CHAPTER 17, SECTION 17.10.100
BE AMENDED WITH THE INCLUSION OF SECTIONS 17.10.100(C),
17.10.100(0), AND 17.10.100(E); AS FOllOWS:
Chapter 17, Section 17.10.100
Collection and Distribution of Fees
(C) Notwithstandinq the foreqoinq Section 17.10.1 OO(A), the City
may defer the payment of in-lieu fees for land dedication
and/or park development for those developments that
require a final subdivision map or parcel map until the date
of permit issuance provided such final map or parcel map is
<approved and recorded after the adoption of this ordinance
Section 17.10.100(C) and prior to December 31,2010. The
amount of the fees due shall be those fees in effect at the
time of permit issuance.
(D) Notwithstandinq the foreqoinq Section 17.10.1 OO(A) , the City
may defer the payment of in-lieu fees for land. dedication
and/or park development due at permit issuance until a date
1 year from the permit issuance or until the call for final
inspection, whichever is earlier, provided the followinq
conditions are met:
1) The permit for which fee deferral is requested was issued
after the adoption of this Ordinance Section 17.10.100(0)
and prior to December 31,2010.
2) Permit applicant demonstrates, to the satisfaction of the
City Manaqer, that the payment of the in-lieu fees at the
time of permit issuances creates a financial hardship.
3) An aqreement with the City in a form approved by the
City Attorney is executed containinq the followinq terms
and conditions:
a. Interest shall accrue on the deferred fees at the
City's averaqe earninq rate from the date of permit
issuance until the deferred fees are paid in full.
b. The City may withhold interim or final inspection,
issuance of any additional permits, and/or
certificates of occupancy, if applicable, until the
deferred fees are paid in full.
c. The payment of the deferred fees and accrued
interest shall be secured by a lien recorded on the
property for which the permit was issued and such
lien shall run with and encumber the property.
d. Fees and Accrued Interest shall be paid with a
certified check prior to or concurrent with the date
on which the deferral period ends.
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e. If the Owner sells or transfers the property or any.
portion of the property in any manner, the property
shall not be released from any of the obliqations,
covenants, or conditions under the Aqreement
relatinq to the property or portion of the property
beinq acquired
f. Permit applicant shall pay all fees associated with
the preparation and recordinq of the aqreement
and associated lien.
4) For those deferred fees equal to or in excess of
$100,000, the Aqreement shall be approved by the City
Council. For those deferred fees less than $100,000, the
City Manaqer or his/her desiqnee shall execute the
Aqreement. Separate Aqreements shall not be created
or executed in order to avoid the approval limitations or
requirements of this section.
(E) The provisions of Sections 17.10.100(C) and 17.10.100(0) shall
expire, terminate, and become void at midniqht on December 31,
2010. Upon expiration of this ordinance, all fees for development
required to record a final or parcel map, deferred pursuant to the
Section 17.10.100(C) and not the subject of a deferral aqreement
pursuant to Section 17.10.100(0), shall be due and payable on or
before January 1, 2011. The amount of the fees due and payable
shall be the amount of the fees in effect at the time of payment.
BE IT FURTHER ORDAINED that this ordinance shall take effect and be in full
force thirty (30) days after its adoption.
Presented by
/\ !~) !
Approv~d as to F yb
"/ / 7J /
~X-il1/1 I I
Bart Miesf.~ld
\ .'
City Attorney
Gary Halbert
Director of Engineering and Public Works
7-6
ORDINANCE NO.
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
TITLE 17, SECTION 17.10.100 OF THE CHULA VISTA
MUNICIPAL CODE TO FACILITATE THE DEFERRAL OF
IN-LIEU PARK FEES
WHEREAS, the City of Chula Vista is desirous of both assisting economic
development and providing parklands for the community, and; .
WHEREAS, currently, in-lieu park fees ("PAD fees") are collected prior to the
recordation of a final map or parcel map or for development that does not require a final
map or parcel map, at the time of permit issuance; and
WHEREAS, the existing requirements related to the timing of the collection of
PAD fees has been identified as a possible impediment to development; and
WHEREAS, in those situations where the PAD fees are not necessary for the
public health or welfare, a deferral in the collection of such fees would not harm the City
or its ability to provide its citizens and communities with the Parks they need; and
WHEREAS, the deferral of PAD fees will also provide developers with relief from the
upfront capital requirements, so that they may begin pulling building permits; and
WHEREAS, on December 16, 2008, the City Council approved an ordinance for
the deferral of certain development impact fees and other fees associated with
development due to the economic downturn; and
WHEREAS, similarly, in order to permit the deferral of the collection of PAD fees,
the City must amend its Municipal Code by adopting an ordinance; and
WHEREAS, the City desires to limit the applicability of such deferred payments of PAD
fees to those final maps, parcel maps approved and recorded and those permits issued
after the adoption of this Ordinance
NOW, THEREFORE, THE CITY COUNCil OF THE CITY OF CHULA VISTA
DOES ORDAIN AS FOllOWS:
7-7
THAT CHULA VISTA MUNICIPAL CODE CHAPTER 17, SECTION 17.10.100
BE AMENDED WITH THE INCLUSION OF SECTIONS 17.10.100(C),
17.10.100(0), AND 17.10.100(E); AS FOllOWS:
Chapter 17, Section 17.10.100
Collection and Distribution of Fees
(C) Notwithstanding the foregoing Section 17.10.1 OO(A), the City
may defer the payment of in-lieu fees for land dedication
and/or park development for those developments that
require a final subdivision map or parcel map until tile date
of permit issuance provided such final map or parcel map is
approved and recorded after the adoption of this ordinance
Section 17.10.100(C) and prior to December 31, 2010. The
amount of the fees due shall be those fees in effect at the
time of permit issuance.
(D) Notwithstanding the foregoing Section 17.10.1 OO{A) , the City
may defer the payment of in-lieu fees for land dedication
and/or park development due at permit issuance until a date
1 year from the permit issuance or until the call for final
inspection, whichever is earlier, provided the following
conditions are met:
1) The permit for which fee deferral is requested was issued
after the adoption of this Ordinance Section 17.10.100(0)
and prior to December 31, 2010.
2) Permit applicant demonstrates, to the satisfaction of the
City Manager, that the payment of the in-lieu fees at the
time of permit issuances creates a financial hardship.
3) An agreement with the City in a form approved by the
City Attorney is executed containing the following terms
and conditions:
a. Interest shall accrue on the deferred fees at the
City's average earning rate from the date of permit
issuance until the deferred fees are paid in full.
b. The City may withhold interim or final inspection,
issuance of any additional permits, and/or
certificates of occupancy, if applicable, until the
deferred fees are paid in full.
c. The payment of the deferred fees and accrued
interest shall be secured by a lien recorded on the
property for which the permit was issued and such
lien shall run with and encumber the property.
d. Fees and Accrued Interest shall be paid with a
certified check prior to or concurrent with the date
on which the deferral period ends.
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e. If the Owner sells or transfers the property or any
portion of the property in any manner, the property
shall not be released from any of the obligations,
covenants, or conditions under the Agreement
relating to the property or portion of the property
being acquired
f. Permit applicant shall pay all fees associated with
the preparation and recording of the agreement
and associated lien.
4) For those deferred fees equal to or in excess of
$100,000, the Agreement shall be approved by the City
Council. For those deferred fees less than $100,000, the
City Manager or his/her designee shall execute the
Agreement. Separate Agreements shall not be created
or executed in order to avoid the approval limitations or
requirements of this section.
(E) The provisions of Sections 17.10.100(C) and 17.10.100(0) shall
expire, terminate, and become void at midnight on December 31,
2010. Upon expiration of this ordinance, all fees for development
required to record a final or parcel map, deferred pursuant to the
Section 17.10.100(C) and not the subject of a deferral agreement
pursuant to Section 17.10.100(0), shall be due and payable on or
before January 1, 2011. The amount of the fees due and payable
shall be the amount of the fees in effect at the time of payment.
BE IT FURTHER ORDAINED that this ordinance shall take effect and be in full
force thirty (30) days after its adoption.
Presented by
Gary Halbert
Director of Engineering and Public Works
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