HomeMy WebLinkAbout2009/06/23 Item 1Orditance
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oRDINANCE No. BOND READING A
AN ORDIIv'ANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AMENDNG ORDINANCE 2716 TO UPDATE THE POGGI CANYON SEWER
BASIN DEVELOPMENT IMPACT FEE TO PAY FOR SEWER IMPROVEMENTS
WITHIN THE POGGI CANYON SEWER BASIN AS A CONDITION OF ISSUANCE
OF BUILD}iv'G PERMITS.
WHEREAS, 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; and
WHEREAS, the City Council has determined that new development within certain
azeas within the City of Chula Vista as identified in this ordinance, will create adverse
impacts on certain existing public facilities which must be mitigated by the financing and
construction of those facilities identified in this ordinance; and
WHEREAS, developers of land within the City are required to mitigate the burden
created by their development by the construction or improvement of those facilities
needed to provide service to their respecrive developments or by the payment of a fee to
finance their fair shaze portion of the total cost of such facilities; and
WHEREAS, 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 Poggi Canyon Sewer Basin ("Basin") is that area of land within the
City of Chula Vista which wastewater will flow by gravity from Poggi Canyon into the
Main Street Basin; and
WHEREAS, on December 9, 1997, the City Council of the City of Chula Vista
adopted Ordinance No. 2716 establishing a Development Impact Fee to pay for sewer
improvements within the Poggi Canyon Sewer Basin as a condition of issuance of
building permits; and
WHEREAS, PMC Consultants has prepazed the update to the Poggi Canyon
Sewer Basin Plan ("Report") dated Apri12009; and
WHEREAS, said Report includes an estimate of ultimate sewer flows anticipated
from development within the Poggi Canyon Basin, recommends sewer facilities needed
to transport these flows, and establishes a fee payable by persons obtaining building
permits for developments within these basins benefiting from the construction of these
facilities; and
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WHEREAS, on May 11, 2009, City staff notified major developers of the proposed
Poggi DIF Update via a-mail and conventional mail, and asked developers to provide
comments on the Report and City staffs recommendations for amending the Poggi
Canyon Sewer Basin Development Impact Fee ("Impact Fee"); 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 (b)
(4) [Creation of funding mechanisms) of the State CEQA Guidelines; 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; and
WHEREAS, on lone 16, 2009 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 Poggi Canyon 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 Impact Fee on all
developments within the Poggi Canyon Basin 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 welfaze and to ensure effective implementation of the City's General Plan; and
WHEREAS, the City Council has determined that the amount of the Impact Fee
levied by this ordinance does not exceed the estimated cost of providing the public
facilities identified by the Report.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA
DOES ORDAIN AS FOLLOWS:
Ordinance 2716 is hereby amended to read 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).
SECTION 2. Approval of Report.
The City Council has independently reviewed and approved the Report herewith
presented, and 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 Poggi
Canyon Sewer Basin Plan, dated Apri12009, a copy of which is on file in the office of the
City Clerk and the City Engineer.
SECTION 3. "Facilities".
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The facilities which aze subject matter of the impact Fee aze fully described in Table 5-2
of the Report on page 5-3, attached as Exhibit "A", and incorporated herein by this
reference, ("Facilities"), all of which Facilities may be modified by the City Council from
time to time by resolution. The locations at which the Facilities will be constructed aze
shown on Figure 2, which is included in the Report. 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 inland development and estimated and actual wastewater flow.
SECTION 4. Territory to Which Fee Is Applicable.
The azea of the City of Chula Vista to which the Impact Fee herein established shall be
applicable is set forth on Figure 2 of the Report, "", and is generally described herein as
the "Territory."
SECTION 5. Purpose.
The purpose of this ordinance is to provide the necessary financing to construct the
Facilities within the azeas shown in Figure 2 of the Report , in accordance with the City's
General Plan.
SECTION 6. Establishment of Fee.
The Impact Fee, to be expressed on a per Equivalent Dwelling Unit ("EDU") basis, and
payable prior to the issuance of building permits for development projects within the
Territory, has been established to pay for the Facilities.
SECTION 7. Due on Issuance of Building Permit.
The Impact Fee shall be paid in cash upon the issuance of a building permit. Eazly
payment is not permitted. No building permit shall be issued for development projects
within the Territory unless the developer has paid the Impact Fee imposed by this
Ordinance.
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 Impact Fee. Each unit within amulti-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", Sewer Benefit Area Fees
Based on Land Use Categories.
SECTION 9. Time to Determine Amount Due; Advance Payment Prohibited.
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The Impact 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 Impact 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, or reunbursement to the City or, at the discretion of the City if approved in
advance in writing, to other third parties for advancing costs actually incurred for
planning, designing, constructing, or financing the Facilities. Any use of the Impact Fee
shall receive the advance consent of the City Council and be used in a manner consistent
with the purpose of the Impact Fee.
SECTION 11. Amount of Fee; Amendment to Lhe Master Fee Schedule
The Impact Fee shall be calculated at the rate of $265 per EDU. Chapter XVI, Other
Fees, of the Master Fee Schedule is hereby amended to add Section D, which shall read
as follows:
"D. Poggi Canyon Sewer Basin Development Impact Fee.
This section is intended to memorialize the key provisions of Ordinance
No. 2716, and any amendments thereto, but said Ordinance goveras over
the provisions of the Master Fee Schedule, except with respect to changes
permitted by resolution under Section 11 D(d). For example, in the event
of a conflict in interpretation between the Master Fee Schedule and the
Ordinance, or in the event that there aze additional rules applicable to the
imposition of the Impact Fee, the language of the Ordinance governs.
a. Territory to which Fee Applicable.
The azea of the City of Chula Vista to which the Impact Fee herein
established shall be applicable is set forth in Figure 2 of the Poggi Canyon
Basin Gravity Sewer Development Impact Fee Update dated April, 2009,
and is generally described as the Poggi Canyon Basin.
b. Rate per EDU.
The Impact Fee shall be calculated at the rate of $26~ per EDU, which rate
shall be adjusted from rime to time by the City Council.
o. EDU Calculation
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Each single family detached dwelling or single family attached dwelling
shall be considered one EDU for purposes of this Impact Fee. Each unit
within amulti- family dwelling shall be considered 0.75 EDt;. Every
other commercial, industrial, non-profit, public or quasi-public, or other
usage shall be chazged at a rate calculated in accordance with the method
for estimating EDUs, attached as Exhibit "B", "Sewer Benefit Area Fees
Based on Land Use Categories".
d. When Payable.
The Impact Fee shall be paid in cash not later than immediately prior to
the issuance of a building permit."
The Ciry Council shall review the amount of the impact Fee annually or
from time to time. The City Council may, at such reviews, adjust the
amount of this Impact Fee as necessary to assure construction and
operation of the Facilities. The reasons for which adjustments may be
made include, but aze not 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 Impact Fee; changes in land use in the
City's General Plan; other sound engineering, financing and planning
information. Adjustments to the above Impact 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 Impact Fee shall be deposited into a
public facility financing fund {"Poggi Canyon 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 13. Findings.
Based an all written oral testimony at the hearing on the amendment to the Development
Impact Fee, including the Report, the City Council hereby finds the following:
A. The establishment of the Impact Fee is necessary to protect the public safety and
welfaze and to ensure the effective implementation of the City's General Plan.
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B. The Impact Fee is necessary to ensure that funds will be available for the
construction of the Facilities concurrent with the need for these Facilities and to ensure
certainty in the capital facilities budgeting for growth impacted public facilities.
C. The amount of the fee levied by this ordinance does not exceed the estimated cost
of providing the Facilities for which the fee is collected.
D. New development projects within the Territory will generate a significant amount
of wastewater that current sewer facilities can not service, therefore construction of the
Facilities will be needed to service new development projects.
E. That there is a reasonable relationship between the need for the public facility
and the type of development project on which the fee is imposed and the amount of the
fee is roughly proportional thereto.
SECTION 14. Impact Fee Additional to other Fees and Chazges.
The Impact 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 ]5. Mandatory Construction of a Portion of the Facilities; Duty to Tender
Reimbursement Offer.
Whenever a developer is required as a condition of approval of a development permit to
construct or cause the construction of the Facilities or a portion thereof, the City may
require the developer to install the Facilities according to design specifications approved
by the City and in the size or capacity necessary to accommodate estimated ultimate flow
as indicated in the Plan and subsequent amendments. if such a requirement is imposed,
the City shall offer, at the City's option, to reimburse the developer from the Fund either
in cash or over time as Fees aze collected, or give a credit against the Impact Fee levied
by this Ordinance or some combination thereof, in the amount of the costs incurred by the
developer that exceeds their contribution to such Facilities as required by this Ordinance,
for the design and construction of the Facility not to exceed the estimated cost of that
particulaz Facility as included in the calculation and updating of the Impact Fee. The City
may update the Impact Fee calculation as City deems appropriate prior to making such
offer. This duty to offer to give credit or reimbursement shall be independent of the
developer's obligation to pay the Impact 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 a written agreement, reimburse the developer from the
Fund either in cash or over time as Fees aze col]ected, or give a credit against the Impact
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Fee levied by this Ordinance or some combination thereof, in the amount of the costs
incurred by the developer that exceeds their contribution to such Facilities as required by
this Ordinance, for the design and construction of the Facility not to exceed the estimated
cost of that patticulaz Facility as included in the calculation and updating of the Impact
Fee and in an amount agreed to in advance of their expenditure in writing by the City.
The City may update the impact 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 Impact Fee.
SECTION 17. Procedure for Entitlement to Reimbursement Offer.
The City's duty to extend a reimbursement offer to a developer pursuant to Section I5 or
16 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 construction of
the Facilities, excluding any work attributable to a specific subdivision
project.
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 to be conducted by the developer
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:
(1) Developer shall prepaze all plans and specifications and submit
same to the City for approval;
(Z) Developer shall secure and dedicate any right-of--way required for
the improvement work;
(3) Developer shall secure all required permits and environmental
cleazances necessary for construction of the improvements;
(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.
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(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 improvements.
(7) The developer shall advance atl necessary funds for the
improvements, including design and construction. The City will
not be responsible for any of the costs of constructing the facilities.
(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 chazges 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
improvements. The estimate is preliminary and subject to final
detemunation 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 the public facility project, as approved
and certif ed 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.
(11) The agreement may provide that any funds owed to the developer
as reimbursements may be applied to the developer's obligations to
pay the Impact Fee for building permits to be applied for is 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 Duector of Public
Works shall make the final determination on expenditures which
aze 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 Impact Fees
required by this ordinance against the City's duty to reimburse the
developer.
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(14) If, after offset if any, funds are due the developer under this
section, the City may at its option, reimburse the developer from
the Fund either in cash or over time as Fees aze collected, or give a
credit against the Impact Fee levied by this Ordinance or some
combination thereof, in the amount of the costs incurred by the
developer that exceeds their required contribution to such Facilities
as required by this Ordinance, 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 Impact
Fee and in an amount agreed to in advance of their expenditure in
writing by the City.
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 Impact 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 waiver or modification of the Impact Fee or 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 waiver or 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 Impact 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 Impact 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 or a credit in an
amount equal to that portion of the cost included in the calculation of the Impact Fee
attributable to the Work Alternatively Financed. In this regazd, the amount of the
reimbursement shall be based on the costs included in the Report, 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.
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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 Impact Fees which have been collected reaches an amount equal to the
cost of the Facilities.
SECTION 22. Time Limit and Procedure for Fee Protest and Legal Action.
Any fee protest or legal action, including those to attack, review, set aside, void or annul
this ordinance, shall be conducted in the manner and within the time limitations set forth
in Chapter 9 of the Mitigation Fee Act, title Protests, Legal Actions and Audits, starting
with Government Code Section 66020.
SECTION 23. Other Not Previously Dcfined 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 appeazs that a different meaning is
intended.
(a) "Building Petntit" 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 66000 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.
Presented by
Richazd A. Hopkins
Director of Public Works
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Exhibits:
A) Program Costs, Table 5-2 from Poggi Canyon Gravity Sewer Development
Impact Fee Update report dated Apri12009.
B) Development Impact Fee Per Land Use Category from Poggi Canyon Gravity
Sewer Development Impact Fee Update report dated Apri12009.
J:~EngineerVSEWER`,2006~PoggiCynUpdateWgrndaktrilced ORDINANCE Z716lp.doc
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Ex}3ibit A- Program Costs
:artstructed Project Costs
Reaches 20t-204, 20&207 AYres/City 51,046,032
Reach 205 GtY/DIF 1,434,918
Reaches 208.2t3' Ayres 136,205
Reach 214to 277 Otay Ranch Co. 638,748
Reach 27 B to 219 McMillin 412,938
Reach 2t 9 to 22t Otay Ranch Ca. 283,190
Poggi Exiens'wn in Olympic Pkwy' Essdake 23,000
Paggi Eraension' Eastlake 7,094.707
SubtoW 33,070,738
Fu[ure Corsstructian Costs
PZ97R-P270 Olympic Parkway west of Brandywine AVe 5334,900
P270 - P303 Olympic Parkway oast of Brandywine Ave. 5487,800
5ubm~ 5916,300
Misceltanea[s Cost
Updateilstaff adminisaadons 5306,200
Project TOtal 56,293,236
Lets Gty tantribuaon (Reaches 29t-204, 20E-207)` 9(1,046.032)
DI F Total 93,247,206
) AYeef payment: dued 17116198, 1/23100, iL78104 artd 3!8/01 - 51,042.320. The 51,046,032 u based on 51,736,440 vansW in
6rnn Trunk Sewer Gpitat Reserve Fund kst 5714408 transfened hack.
Z Final audit tsrmpfesed for SI It,63Z Audi[ is pending br CO 99 for 512756- Includes 9.5% estimated -oR mstt on tool of
5124,388-
3 Thu segmem u from SR 125 m Staticrt 346 a 33 ss shown an Dwg 02024.04. the costs are has+~ on the change order infomudon
and were Initially funded by C1:0 061. Reimhursemem to CFO 061 h due
4 Essdake rdmbursed 6o1n Trunk Sewer Gpital Reserve Fund N Mlarcli 2008. Portion On Olympic Parkwayhom SR t 25 m the land
swaps Iurtded in CFD 061 in the anwunt of S24A00. Portico in Eattlake Parkway u ro[ D!F digibfe and is efigibfe m be funded
via CFD O6I.
S Admfnisvadon rosU indude future cos0 of S 720,000.
6 Represenu rosy of ieadser 201.204 anC 206-207. In 1997, it west estimated m he 51, 756,440.
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Exhibit B-Sewer Benefit Area Fees Based on Land Use Cateeories
Residential • SFD 263 gpolDU I.OdDU
Residendal-MFO 799 gpd/OU 0.75/DU
ComrnerdaNnduztrial 2,300 gpolaae 9.43laae
MuIR-Story Commercial 0.072gpd/sf OST1/7,000 sf
High Sdtoo! 20 gpolstudent 0.08htudent
Junior High Sd:aof 20 god/student O.DE/studant
Elementary 73 gpd/swdent O.ONstudent
Park 500 gpd/aae 1.89/aae
CPF 2,300 gpdrave 4.43lace
g'd: gaEart per day
ou: dwelrmg unie
~F. mmrtmniryputpose LaalitY
SFO: singlelamgy dwdling
MFO: mulNamily dwdIlng
hWfti•Stary Commeecial: Eased cn EilC Terhnfni Sewer Study 6r hi~+ise rtan+esidenGal land urns arsuming a
Aaorarea tado 0/09 fZ300 gpdper axe . ba x A3,360 sEaQel -0.092 gpoltA.
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