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HomeMy WebLinkAboutOrd 1996-2683 ORDINANCE NO. 2683 AN ORDINANCE OF THE CITY OF CHULA VISTA, CALIFORNIA ESTABLISHING THE OTAY RANCH RESERVE FUND FEE IN ACCORDANCE WITH RESOLUTION 18288, WHICH ESTABLISHED THE OTAY RANCH RESERVE FUND PROGRAM WHEREAS, the Otay Ranch General Development Plan (GDP) approved by the Chula Vista City Council and the Board of Supervisors on October 28, 1993, required that: "All City local services provided to the incorporated portions of Otay Ranch, including direct and indirect costs, and including capital and operating costs, shall be covered by project revenues and project exactions. Shortfalls shall be covered through a specially designed fund established by the developer and through an agreement between the City of Chula Vista and the County of San Diego;" and WHEREAS, the Otay Ranch GDP also requires that: "A reserve fund program shall be established concurrent with the approval of the first SPA, to correct any annual operating deficiencies incurred by the applicable jurisdiction. The reserve fund program shall finance the cost of an annual review and updated fiscal impact analysis, and be the basis for any transfer of monies from the reserve fund...;" and WHEREAS, the Chula Vista City Council on May 14, 1996 adopted Resolution 18288 establishing the Otay Ranch Reserve Fund Program; and WHEREAS, Resolution 18288 specifies that the Reserve Fund Program shall consist of the following: (a) The developer and/or applicant shall pay a fee, adopted by ordinance by the City Council, to pay for the financing of the cost of an annual review and updated fiscal impact analysis, as performed by the Fiscal Impact of New Development (FIND) Model. The FIND Model produces a representation of City and County fiscal impacts for any given year and throughout the Otay Ranch Project's buildout period. (b) The Property Tax Transfer Agreement, entered into with the County, by Resolution 18261, wherein the County has agreed to cover, subject to a number of contingencies, the potential City operating deficits from the Otay Ranch Project that the City might incur through FY 2016-17; and WHEREAS, Resolution 18288 specifies that the City Council may amend the Reserve Fund Program, from time to time, to include additional fees to cover any potential City deficits that may not be covered by the adopted Reserve Fund Program; and WHEREAS, Resolution 18288 specifies that failure to comply with the terms of the Reserve Fund Program shall be considered a violation of the GDP at which time the City shall have the right to revoke or modify all approvals granted for the Otay Ranch Project, including issuance of building permits; and WHEREAS, the Otay Ranch Property Tax Transfer Agreement was approved by the City Council on May 14, 1996 and by the County Board of Supervisors on May 15, 1996; and WHEREAS, said Property Tax Transfer Agreement calls for the City and County to jointly undertake an annual fiscal impact analysis of the project area for twenty years commencing with FY 1997-98 and for the County to utilize a portion of its annual fiscal Ordinance 2683 Page 2 surplus to offset any residential operating deficits incurred by the City through FY 2016-17, subject to specified constraints; and WHEREAS, the affected property owners were notified of the proposed Otay Ranch Reserve Fund Program prior to its being adopted by the City Council on May 14, 1996; and WHEREAS, the affected property owners have been notified of the July 9, 1996 public hearing on the proposed Otay Ranch Reserve Fund fee; and WHEREAS, information regarding the fee and the estimated costs required to provide the service for which the fee is to be levied, was made available at the City Clerk's office; and WHEREAS, Attachment 1 describes the calculation of the initial fee for the Otay Ranch Reserve Fund; and WHEREAS, the City Council has determined, based upon the evidence presented at the July 9, 1996 public hearing, including but not limited to the various reports and other information received by the City Council in the course of its business, that imposition of the Otay Ranch Reserve Fund fee on all developments within the Otay Ranch General Development Plan for which building permits have not yet been issued is necessary in order to protect the public safety and welfare, to ensure the effective implementation of the Otay Ranch General Development Plan and is reasonably related to the development of the Otay Ranch Project; and WHEREAS, the FIND Model projections indicate that the City's operating deficits result from residential development, not commercial or industrial, so the proposed fees for the Otay Ranch Reserve Fund are proposed to be tied to residential units, both single family and multi- family, on the portions of the Otay Ranch covered by the Otay Ranch Property Tax Transfer Agreement; and WHEREAS, the Environmental Review Coordinator has determined that this proposed ordinance is exempt under the provisions of Section 15061 (b)(3) of the CEQA Guidelines. NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows: Section 1. Territory to Which Fee is Applicable. The area of the City of Chula Vista to which the Otay Ranch Reserve Fund Fee herein established shall be al~plicable is the same as the "Affected Territory" defined in the Otay Ranch Property Tax Transfer Agreement adopted by the Chula Vista City Council on May 14, 1996, which is summarized as "Areas subject to 1996 Otay Ranch Property Tax Agreement" on the attached Exhibit A. Section 2. Purpose. By Resolution 18288, the City Council established the Otay Ranch Reserve Fund Program which is specified to include a fee paid by the developer and/or applicant. The purpose of this ordinance is to establish the Otay Ranch Reserve Fund Fee in accordance with Resolution 18288 and in accordance with the Otay Ranch General Development Plan. Ordinance 2683 Page 3 purpose of this ordinance is to establish the Otay Ranch Reserve Fund Fee in accordance with Resolution 18288 and in accordance with the Otay Ranch General Development Plan. Section 3. Establishment of Fee. An Otay Ranch Reserve Fund Fee ("Fee") to be expressed on a per residential dwelling unit basis, shall be paid prior to the issuance of a building permit for a residential development project within the Affected Territory. Section 4. Determination of Dwelling Units Each single family attached and detached dwelling unit shall be considered one dwelling unit for purposes of this Fee. Each multi-family attached and detached dwelling unit shall also be considered a dwelling unit for the purposes of this Fee. Commercial, industrial and other non-residential uses shall not be charged an Otay Ranch Reserve Fund Fee. Section 5o Time to Determine Amount Due; Advance Payment Prohibited. The Fee for each residential dwelling unit 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. The Fee shall be adjusted from time to time as the City determines appropriate. Section 6. Amount of Fee. The Fee shall be calculated at the rate of $124.00 per dwelling unit for the first 1,500 dwelling units within the Affected Territory, and $26,09 per dwelling unit for the estimated remaining 16,867 dwelling units, after said first 1,500 dwelling units, within the Affected Territory. The calculation of the initial Fee for the Otay Ranch Reserve Fund is shown in Attachment 1. The City Council intends to review the amount of this Fee annually or from time to time, The City Council may, at such reviews, adjust the amount of this Fee as necessary to assure compliance with the purposes of this Fee as set forth herein, the Otay Ranch Reserve Fund Program and the Otay Ranch General Development Plan. Adjustments to the above Fee may be made by resolution. Section 7o Authority for Accounting and Expenditures. The proceeds collected from the imposition of this Fee and any interest earned thereon shall be deposited into a separate fund or account ("Otay Ranch Reserve Fund") which is hereby created and such proceeds shall be expended only for the purposes set forth in this ordinance. The Director of Finance is authorized to periodically make expenditures from the Otay Ranch Reserve Fund for the purposes set forth herein. Expenditures from the Otay Ranch Ordinance 2683 Page 4 Reserve Fund and any interest earned thereon shall be accounted for separately from other City accounts. Section 8. Revision and Refund of Fees. At such time as the City Council determines that this Fee is no longer required to be co(l'ected for the purposes set forth herein, the Fee shall be suspended. If the Fee is suspended as provided above, the Finance Director shall provide a report to the City Council summarizing the revenues and expenditures to date resulting from the Fee. If there are surplus funds available, the City Manager shall provide a recommendation to the City Council on the most fair and equitable disposition of any excess Fees that may have been collected. In the absence of an alternative determination of fairness by the City Council, a refund which divides the remaining unused balance by the residential units for each developer or applicant who has paid the Fee for the Otay Ranch Reserve Fund shall be deemed a fair method. Section 9. Findings. The City Council of the City of Chula Vista does hereby finds that the establishment of the Fee is necessary to protect the public safety and welfare, to ensure the effective implementation of the Otay Ranch General Development Plan and is reasonably related to the development of the Otay Ranch Project, for the following reasons: ' A. The Otay Ranch GDP requires that a Reserve Fund Program be established to correct any annual "operating deficiencies" incurred by the City as a result of the development of the Otay Ranch Project and to finance the cost of an annual review and analysis of the fiscal impact this Project is having on the City. B. The FIND Model produces a representation of the Otay Ranch Project's fiscal impacts on the City and County for any given year to the buildout of such project. C. It is projected that the City's operating deficits will result from residential development, not commercial or industrial, so the proposed fees for the Otay Ranch Reserve Fund are proposed to be tied to residential units, both single family and multi-family. D. The amount of the fee levied by this ordinance, to fund the FIND Analysis does not exceed the estimated cost of providing this service. It is anticipated that the FIND Analysis will be more costly for the first five years of the Otay Ranch Project. E. The collection of the Fee established by this ordinance at the time of the building permit is necessary to ensure that funds will be available for the purposes described in Resolution 18288 and the Otay Ranch GDP. Section 10. Fee Additional to Other Fees and Charges. The Fee established by this ordinance is in addition to the requirements imposed by other City laws, policies or regulations relating to the development of Otay Ranch. Ordinance 2683 Page 5 Section 11. 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 12. Expiration of This Ordinance. This ordinance shall be of no further force and effect when the City Council determines that the Fees are no longer needed for the purposes stated herein. Section 13. Effective Date. This ordinance shall become effective sixty (60) days after its second reading and adoption. Presented by Approved as to form by · "Thomson Ann Y. Moors/ Manager/ Acting City Attorney Ordinance 2683 Page 6 ATTACHMENT 1 CALCULATION OF INITIAL FEE FOR OTAY RANCH RESERVE FUND COUNTY CONTRACT YEAR CITY COST COST COST ANNUAL COST YEARS TOTAL COST 1 $30,000 $30,000 $20,000 $80,000 1 $80,000 2 15,000 15,000 10,000 40,000 1 40,000 3-20 10,000 10,000 2,000 22,000 18 396,000 21 10,O00 0 2,000 12,000 1 12,000 22-25 6,000 O 1,000 7,000 14 98,000 Total 35 $626,000 Ordinance 2683 Page 7 Ordinance 2683 Page 8 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 23rd day of July, 1996, by the following vote: AYES: Councilmembers: Alevy, Moot, Padilia, Rindone, Horton NAYS: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None 'Shirl~W h~rton, Mayor ATTEST: Beverly/(. 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. 2683 had its first reading at a regular meeting held on the 9th day of July, 1996 and its second reading and adoption at a regular meeting of said City Council held on the 23rd day of July, 1996. Executed this 23rd day of July, 1996. Beverly A/'Authelet, City Clerk