HomeMy WebLinkAboutOrd 2001-2841-A ORDINANCE NO. 2841-A
URGENCY ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA ESTABLISHING THE SAN MIGUEL
RANCH FISCAL DEFICIT FEE AS A BUILDING
PERMIT-BASED FEE TO PROVIDE PERMANENT FUNDING
FOR THE PREPARATION OF 15 ANNUAL FISCAL REVIEWS
FOR THE SAN MIGUEL RANCH PROJECT, AND FOR THE
PAYMENT OF ANY FISCAL DEFICITS IDENTIFIED BY
THOSE ANNUAL REVIEWS, AS REQUIRED BY
ORDINANCE 2829, WHICH ESTABLISHED THE SAN
MIGUEL RANCH FISCAL DEFICIT ACCOUNT
WHEREAS, the San Miguel Ranch Sectional Planning Area (SPA) Plan and Public
Facilities Financing Plan/Fiscal Impact Analysis (PFFP/FIA) were approved by the City Council
on October 19, 1999, by Resolution No. 19631; and
WHEREAS, the PFFP/FIA identified that the San Miguel Ranch project would operate at
an annual net fiscal deficit to the City; and
WHEREAS, Condition No. 22 of Resolution 19631 required the project applicant to
establish a mechanism to mitigate that deficit to the City's satisfaction prior to annexation of the
project site; and
WHEREAS, on February 29, 2000, the City Council approved a Master Tentative
Subdivision Map for the San Miguel Ranch project by Resolution No. 2000-068; and
WHEREAS, Condition No's. 95a. & 95b. of Resolution No. 2000-068 further specified
the Applicant's responsibility to establish an account to finance the preparation of annual fiscal
reviews and deficit analyses for the project, and to establish a permanent mechanism, prior to
approval of the first Final Map within the project, to pay the City for the ongoing preparation of
the annual reviews, and for any fiscal deficits identified by the annual reviews; and
WHEREAS, on April 3, 2000, the San Diego Local Agency Formation Commission
(LAFCO) adopted a Resolution (Ref. No. R099-42) approwng San Miguel Ranch
Reorganization subject to conditions, one of which reads "Pursuant to conditions regarding a
forecasted annual fiscal deficit, contained in the SPA and Tentative Map, the property owner will
establish and fund a mitigating mechanism to the City's satisfaction"; and
WHEREAS, on December 19, 2000, in conjunction with actions on annexation of the San
Miguel Ranch project area, the City Council approved Ordinance 2829, establishing the San
Miguel Ranch Fiscal Deficit Account; and
WHEREAS, pursuant to Sections 3 and 5 of Ordinance 2829, the Applicant (NNP-
Trimark San Miguel, LLC) ("Applicant") shall, prior to approval of the first Final Map within
the project, establish and fund a permanent mechanism to satisfy the Applicant's responsibility
for funding preparation of the 15 annual reviews, and for payment of the project's fiscal deficits
identified by those reviews; and
WHEREAS, Exhibit 2, attached hereto, is an excerpt from the approved San Miguel
Ranch PFFP/FIA and generally describes the forecasted armual fiscal deficit; and
Ordinance 2841-A
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WHEREAS, Exhibit 3, attached hereto, identifies the proposed San Miguel Ranch Fiscal
Deficit Fee which will establish a permanent funding mechanism and ensure payment of said fee
to the City prior to issuance of building permits, to mitigate any fiscal deficits resulting from the
project; and
WHEREAS, the City Council has determined, based upon information presented to it in
conjunction with prior action on the Project's SPA, PFFP/FIA, Tentative Subdivision Map and
Annexation, that imposition of the San Miguel Ranch Fiscal Deficit Fee on all developments
within the San Miguel Ranch SPA Plan area 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 San Miguel Ranch SPA Plan, and is reasonably related to the development
of the San Miguel Ranch Project; and
WHEREAS, the Project's PFFP/FIA indicates that the City's operating deficits result
from residential development, not commercial, so the proposed fees are proposed to be tied to
residential dwelling units, both single and multiple family; and
WHEREAS, the Environmental Review Coordinator has determined that the action is not
a project as defined by the California Environmental Quality Act (CEQA), and therefore is not
subject to environmental review. No further action is necessary.
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 to which the San Miguel Ranch Fiscal Deficit Fee herein established shall be
applicable is the same as the San Miguel Ranch SPA Plan, and defined by the San Miguel Ranch
Reorganization (City Council Resolution 2000-482) and reflected on Exhibit 1, attached hereto
("Affected Territory").
Section 2. Purpose
By Ordinance 2829, the City Council established the San Miguel Ranch Fiscal Deficit
Account. Pursuant to Sections 3 and 5 of Ordinance 2829, the purpose of this ordinance is to
establish the permanent funding mechanism to pay the City for conducting 15 annual fiscal
reviews and analyses, and for any fiscal deficits resulting from the San Miguel Ranch project.
Section 3. Establishment of Building Permit Fee
A San Miguel Ranch Fiscal Deficit Fee ("Fee") to be expressed on a per-residential-
dwelling-unit basis, shall be paid prior to the issuance of a building permit for any residential
project with 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
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considered a dwelling unit for the purposes of this Fee. Commercial and other non-residential
uses shall not be charged this Fee.
Section 5. 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 following rates:
$896.00 for each dwelling unit issued a building permit during calendar year 2001; and
$922.00 for each dwelling unit issued a building permit during calendar year 2002, and
$950.00 for each dwelling unit issued a building permit during calendar year 2003, and
$979.00 for each dwelling unit issued a building permit during calendar year 2004, and
$1,008.00 for each dwelling unit issued a building permit during calendar year 2005.
The calculation of the initial Fee for the San Miguel Ranch Fiscal Deficit Fee is shown
in Exhibit 3.
Should issuance of building permits for residential dwelling units continue beyond
calendar year 2005, the fee shall be increased an additional 3% for each subsequent calendar
year, and the increased fee shall be applied to all residential units issued building permits in that
calendar year.
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, and the San Miguel Ranch SPA Plan
and PFFP/FIA.
Section 7. Authority for Accounting and Expenditures
The proceeds collected from the imposition of this Fee and any interest earned thereon
shall be deposited into the San Miguel Ranch Fiscal Deficit Account established by Ordinance
2829, and such proceeds shall be expended only for the purposes and under the authorities set
forth in that Ordinance 2829.
Section 8. Revision and Refund of Fees
At such time as the City Council determines that this Fee is no longer required to be
collected 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
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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 shall be deemed a fair method.
Section 9. Findings
The City Council of the City of Chula Vista does hereby find that the establishment of the
Fee is necessary to protect the public safety and welfare, to ensure the effective implementation
of the San Miguel Ranch SPA Plan, and is reasonably related to the development of the San
Miguel Ranch Project, for the following reasons:
A. The San Miguel Ranch Tentative Map Resolution, Condition of Approval #95 requires
that a Fiscal Deficit program be established to correct any annual operating deficiencies
incurred by the City as a result of the development of the San Miguel Ranch Project. This
program will finance the cost of 15 annual reviews and analyses of the fiscal impact of
the Project upon the City, and payment of any fiscal deficits identified by those annual
reviews.
B. The San Miguel Ranch PFFP/FIA produces a representation of the project's fiscal
impacts upon the City for any given year to the buildout of the project. .
C. It is projected that the City's operating deficits will result from residential development,
not commemial or industrial, so the proposed fees are 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 annual fiscal deficit analyses
does not exceed the estimated cost of providing this service.
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 the San
Miguel Ranch PFFP~FIA and in Ordinance 2829.
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 San Miguel Ranch.
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
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This ordinance shall be of no further force and effect when the City Council determines
that the accounts 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
Robert A. Leiter J~ M. Kaheny ~
Planning & Building Director ~.-City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
th
California, this 7 day of August, 2001, by the following vote:
AYES: Councilmembers: Davis, Padilla, Rindone, Salas, and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Shirley Horton(Mayor
ATTEST:
Susan Bigelow, City C°lerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Ordinance No. 2841-A was passed as an urgency measure on the 7th day of August, 2001.
Executed this 7th day of August, 2001.
Susan Bigelow, City Clerk u