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HomeMy WebLinkAbout2010/01/26 Item 6 CITY COUNCIL AGENDA STATEMENT -;.,- ~(ft;- CITY OF .~ (HUlA VISTA 1/26/10, Item~ SUBMITTED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE REGARDING DEVELOPM~1jj';:-IMPACT FEES DEPUTY CITY MANAGEitlttfDIRECTOR OF DEVELOPMENT SERVICES ~ CITY MANAGEKT 4/5THS VOTE: YES 0 NO [g] ITEM TITLE: REVIEWED BY: SUMMARY The City of Chula Vista requires the payment of development impact fees (OIF) for transportation related improvements as a condition of development. These fees are adjusted annually for changes in construction costs based on established construction indexes. The fees were last increased in September 2009. During adoption of the Green Building Ordinance in October 2009, Council directed staff to review ways to lessen the burden of the new ordinance during the current economic conditions. During this review staff examined current development impact fees. The review concluded that while the impact fees increased in the current year, infrastructure construction costs were trending lower. The proposed amendment to the master fee schedule would reduce transportation development impact fees to 2009 levels until 20 1 1 at which time the fees would be adjusted to reflect any changes to construction costs that occurred during this period. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed actions for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed action 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. Thus, no further environmental review is necessary. RECOMMENDATION That the City Council approve the resolution. 6-1 1/26/2010, Item~ Page 2 of2 DISCUSSION The current transportation DIP programs for both eastern and western Chula Vista have provisions to adjust automatically for changes in construction costs based on established construction indexes. The Eastern Transportation DIP index is based on the annual change each July in the Los Angeles Construction Cost Index posted in the Engineering News Record. The change to the eastern Transportation DIF is effective each October first. For the Western Transportation Development Impact Fee, the index is the higher of 2% or Caltrans Construction Const Index changes from July to July each year. Recent bids for public works projects for the City are trending toward lower, not higher for construction costs. Therefore, staff recommends to rollback the last transportation DIF increases that occurred in 2009 and to hold those fees constant until October I, 20 II at which time the fees will be adjusted based on the changes to the respective cost indexes for the period. The amount of the fee Table I below gives the current fees and the proposed fees as of the effective date of this resolution. The proposed fees are the same fees that were in place prior to the 2009 increase for the two programs. The acronym "EDU" stands for equivalent dwelling unit, the method used to convert land uses to a single family detached home for comparison purposes. DIF Program Current Fee per EDU Proposed Fee per EDU Change East ofI-805 $11,836 $11,317 -$5 1 9/EDU West ofI-805 $3,308 $3,243 -$65/EDU Table 1 Effective date of the fee change The effective date of the fee change will be the day following the approval of this resolution. Any building permits issued between the 2009 increase and the effective date of this resolution will not be refunded the difference as those building permits were issued prior to the fee decrease and were required to pay the fees in effect at the time of building permit issuance. DECISION MAKER CONFLICT The change to the master fee schedule is of citywide benefit and, as such, the 500' conflict of interest requirement does not apply. CURRENT FISCAL IMP ACTS The fiscal impact is indeterminate at this time given the lack of development and unknown future costs changes. Given that the current trend is for falling prices and due to the lack of development activity and, given that ultimately the index will be adjusted annually, staff recommends approval of the resolution. ONGOING FISCAL IMPACTS The long-term fiscal impact will be neutral because the two DIF programs will adjust for inflation over the life of the program. Attachments: N/A Prepared by: Tom Adler, Senior Civil Engineer 6-2 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE REGARDING DEVELOPMENT IMPACT FEES WHEREAS, several ordinances have been adopted in the City of Chula Vista related to the establishment and adjustment of certain transportation impact fees for development in the City; and WHEREAS, such ordinances include Chapter 3.54, the Transportation Development Impact Fee ("TDlF"), of the Chula Vista Municipal Code ("CVMC") and Chapter 3.55, the Transportation Development Impact Fee ("Western TDIF"); and WHEREAS, section 3.54.010(C) of the CVMC provides that the TDIF shall be adjusted on October 1 st of each year to mirror the change in the Los Angeles County Construction Index; and . WHEREAS, section 3.55.090 of the CVMC provides that the amount of the Western TDIF is adjusted on July 1st of each year as the higher of 2% or the Caltrans Highway Construction Cost Index; and WHEREAS, both sections 3.54.010 and 3.55.090 permit the City Council to readjust, by resolution amending the Master Fee Schedule, the transportation impact fees, based on changes in type, size, location or costs of facilities included in the transportation impact fee programs; and WHEREAS, based on the current market conditions, the costs of construction have been reduced, providing a justification to readjust the respective transportation impact fees; and WHEREAS, staff is suggesting that the transportatioiI impact fees be adjusted to $11,317 per EDU for the Eastern Transportation Development Impact Fee and $3,243 for the Western Transportation Development Impact Fee; and, WHEREAS, staff also recommends that such fees are maintained at the levels suggested until October 1,2011, at which time the fees should be adjusted to reflect the two year change in their respective indices, and the Master Fee Schedule be changed accordingly. NOW, THEREFORE, the City Council of the City of Chula Vista does hereby resolve to amend the master fee schedule as follows: DIF Program Current Fee Der EDD Adiusted Fee per EDD TDIF $11,836 $11,317 Western TDIF $3,308 $3,243 6-3 Resolution No. Page 2 BE IT FURTHER RESOLVED that the above fees shall remain as such until October 1, 2011, at which time they shall be changed to the current fee as a base adjusted to reflect the two year change in their respective indices, and the Master Fee Schedule shall be changed accordingly. Presented by: Gary Halbert, AICP, PE Deputy City Manager! Director of Development Services 6-4