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HomeMy WebLinkAboutOrd 1994-2617 ORDINANCE NO. 2617 AN ORDINANCE OF THE CITY OF CHULA VISTA, CALIFORNIA ESTABLISHING 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 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. 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. This map is also included as an attachment to the Salt Creek BaSin Gravity Sewer Analysis; and, WHEREAS, Wilson Engineering has prepared the Salt Creek Basin ~:avity Sewer Analysis ("Report") dated November 1994; and, \ WHEREAS, the Report has determined that new development within Upper and Lower Otay Lake and Salt Creek Basins 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, and establishes a fee payable by persons obtaining building permits for developments within these basins benefiting from the construction of these facilities; and, WHEREAS, on October 18, 1993 a public meeting was held with the owners and developers of properties located within the Gravity Basin to discuss the Report and city staff recommendations for establishing the Salt Creek Sewer Basin Development Impact Fee; and, WHEREAS, the Environmental Review Coordinator conducted an Initial Study, IS-94- Ordinance No, 2617 Page 2 24, of potential environmental impact associated with the proposed Project and has concluded that there would be no significant environmental impacts, and recommends adoption of the Negative Declaration issued on IS-94-24; and, WHEREAS, on November 22, 1994 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 establishment of the Salt Creek Sewer Basin Development Impact Fee; and, WHEREAS, the City Council determined, based upon the evidence presented at the Public Hearing, including, but not limited to, the Report and other information received by the City Council in the course of its business, that imposition of the sewer facilities development impact fee on all developments within the Salt Creek and Otay Lake Basins in the City of Chula Vista for which building permits have not yet been issued is necessary in order to protect the public safety and welfare and to ensure effective implementation of the City's General Plan; and, WHEREAS, the City Council has determined that the amount of the fee levied by this ordinance does not exceed the estimated cost of providing the public facilities. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION 1. Environmental Review. That the Project will have no significant environmental impacts, and the City Council of the City of Chula Vista hereby adopts the Negative Declaration issued on IS-94-24. SECTION 2. Approval of Report. The City Council has independently reviewed the proposed Report herewith presented, finds that it is fair, reasonable and equitable to all parties, and herewith adopts same in the form on file with the City Clerk, known as document number CO94-260, a copy of which is on file in the office of the City Clerk and the City Engineer. SECTION 3. "Facilities". The facilities which are the subject matter of the fee herein established are fully described in the Report at page 1 O, Table 5 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 Ordinance No. 2617 Page 3 in order to maintain compliance with the City's Capital Improvement Program or to reflect changes in land development and estimated and actual wastewater flow. SECTION 4. Territory to Which Fee Is Applicable. The area of the City of Chula Vista to which the Fee herein established shall be applicable is set forth on Exhibit "A", and is generally described as the Salt Creek Sewer Basin, that portion of the Upper Otay Lake Basin north of the Salt Creek Sewer Basin, and that portion of the Lower Otay Lake Basin east of the Salt Creek Sewer Basin, SECTION 5. Purpose. The purpose of this ordinance is to provide the necessary financing to construct the Salt Creek Interceptor within the areas shown in Exhibit "A". SECTION 6. Establishment of Fee. A Development Impact Fee ("Fee"), to be expressed on a per Equivalent Dwelling Unit ("EDU") basis, and payable prior to the issuance of a building permit for a development project within the Territory, is hereby established. SECTION 7. Due on Issuance of Building Permit. The Fee shall be paid in cash upon the issuance of a building permit. Early payment is not permitted. SECTION 8. Determination of Equivalent Dwelling Units. Each single family detached dwelling or single family attached dwelling shall be considered one EDU for purposes of this Fee. Each unit within a multi- family dwelling shall be considered 0.75 EDU. Every other commercial, industrial, non-profit, public or quasi-public, or other usage shall be charged at a rate calculated in accordance with the method for estimating EDUs set forth in Exhibit "B", EDU Conversion Factors For Financial Analysis, and is included as Table 6 in the Report. SECTION 9. Time to Determine Amount Due; Advance Payment Prohibited. The Fee for each development shall be calculated at the time of building Ordinance No. 2617 Page 4 permit issuance and shall be the amount as indicated at that time and not when the tentative map or final map was granted or applied for, or when the building permit plan check was conducted, or when application was made for the building permit. SECTION 10. Purpose and Use of Fee. The purpose of the Fee is to pay for the planning, design, construction and/or financing (including the cost of interest and other financing costs as appropriate) of the Facilities, or reimbursement to the City or, at the discretion of the City if approved in advance in writing, other third parties for advancing costs actually incurred for planning, designing, constructing, or financing the Facilities. Any use of the Fee shall receive the advance consent of the City Council and be used in a manner consistent with the purpose of the Fee. SECTION 11. Amount of Fee; Amendment to the Master Fee Schedule. The Fee shall be calculated at the rate of $284 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. , 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, 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 $284 per EDU, which rate shall be adjusted from time to time by the City Council. Ordinance No. 2617 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 6 of the Salt Creek Basin Gravity Sewer Analysis, "Flow Rates and Equivalent Dwelling Unit Factors". 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 12. Authority for Accounting and Expenditures. The proceeds collected from the imposition of the Fee shall be deposited into a public facility financing fund ("Salt Creek Sewer Basin Benefit Area Fee Fund", or alternatively herein "Fund") which is hereby created and shall be expended only for the purposes set forth in this ordinance. The Director of Finance is authorized to establish various accounts within the Fund for the Facilities identified in this ordinance and to periodically make expenditures 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. Ordinance No. 2617 Page 6 SECTION 13. Findings. The City Council finds that collection of the Fees established by this ordinance at the time of issuance of the building permit is necessary to ensure that funds will be available for the construction of facilities concurrent with the need for these facilities and to ensure certainty in the capital facilities budgeting for growth impacted public facilities. SECTION 14. Fee Additional to other Fees and Charges. The Fee established by this section is in addition to the requirements imposed by other City laws, policies or regulations relating to the construction or the financing of the construction of public improvements within subdivisions or developments. SECTION 15. Mandatory Construction of a Portion of the Facilities; Duty to Tender Reimbursement Offer. Whenever a developer of a development project is required as a condition of approval of a development permit to cause a portion of the sewer system which is the subject matter of a Facilities enhancement planned for improvement under the Basin Plan to be constructed to accommodate the sewage flow generated by the development, the City may require the developer to install Facilities according to design specifications approved by the City. Such improvements shall have the size or capacity necessary to accommodate estimated ultimate flow as indicated in the Basin Plan and subsequent amendments. If such a requirement is imposed, the City shall offer to reimburse the developer from the Fund either in cash or over time as Fees are collected, at the option of the City, for costs incurred by the developer for the design and construction of the Facility not to exceed the estimated cost of that particular Facility as included in the calculation and updating of the Fee. The City may update the Fee calculation as City deems appropriate prior to making such offer. This duty to offer reimbursement shall be independent of the developer's obligation to pay the Fee. SECTION 16. Voluntary Construction of a Portion of the Facilities; Duty of City to Tender Reimbursement Offer. If a developer is willing and agrees in writing to design and construct a portion of the Facilities in conjunction with the prosecution of a development project within the Territory, the City may, as part of the written agreement, grant credits against the Developer's obligation to pay - the Fee, and may thereafter, use the proceeds of the Fund to reimburse the Ordinance No, 2617 Page 7 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: (1) 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: (1) Developer shall prepare all plans and specifications and submit same to the City for approval; (2) Developer shall secure and dedicate any right-of-way required for the Work; (3) Developer shall secure all required permits and environmental clearances necessary for construction of the project; (4) Developer shall provide performance bonds in a form and amount, and with a surety satisfactory to the City; (5) Developer shall pay all City fees and costs. Ordinance No. 2617 Page 8 (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. (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 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. Ordinance No. 2617 Page 9 (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. 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 Ordinance No. 2617 Page 10 shall be based on the costs included in the Basin Plan, as amended from time to time, and therefore, will not include any portion of the financing costs associated with the formation of the assessment or other special taxing district. SECTION 21. Expiration of this Ordinance. This ordinance shall be of no further force and effect when the City Council determines that the amount of Fees which have been collected reaches an amount equal to the cost of the Facilities. SECTION 22. Time Limit for Judicial Action. Any judicial action or proceeding to attack, review, set aside, void or annul this ordinance shall be brought within the time period as established by Government Code Section 54995 after 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. (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. Ordinance No. 2617 Page 11 SECTION 24. Effective Date. This ordinance shall become effective sixty (60) days after its second reading and adoption. Presented by Ap~/~ed as to ,,,f,0r ,.,np by ~?'~l~rector of Public Ordinance No, 2617 Page 12 EXHIBIT A Ordinance No. 2617 Page 13 EXHIBIT B EDU CONVERSION FACTORS FOR FINANCIAL ANALYSIS ,=,-d u~e { se,~e plo,~ H~e { EDU F,,~tor Residential - SFD 250 gpd/DU 1.O0/DU Residential - Multi-Family 187 gpd/DU 0.75/DU Commercial 2,500 gpd/acre 10.00/acre High School * 20 gpd/student 0.08/student Junior High School * 20 gpd/student 0.08/student Elementax7 School * 15 gpd/student O.06/student Park 500 gpd/acre 2.00/acre O.T.C. Training Facility 250 gpd/DU 1.00/DU O.T.C. Residential Dorms 80 gpd/person 0.32/person O.T.C. Support Staff 80 gpd/person 0.32/person O.T.C. Visitor Center Acres 4,000 gpd/acre 16.00/acre CPF 2,500 gpd/acre 10.O0/acre O.T.C. - Olympic Training Center CPF - Community Purpose Facilities * If number of students is not provided, use 1000 gpd/acre or 4 EDU/acre Ordinance No. 2617 Page 14 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 6th day December, 1994, by the following vote: AYES: Councilmembers: Fox, Padilia, Rindone, Horton NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None Shirley ~l~rt~n, Mayor ATTEST: Beverly AL Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A, Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Ordinance No. 2617 had its first reading on November 22, 1994, and its second reading and adoption at a regular meeting of said City Council on the 6th day of December, 1994. Executed this 6th day of December, 1994. Beverly A/. Authelet, City Clerk