HomeMy WebLinkAboutO-1646 AMENDING THE MUNICIPAL CODE TO ESTABLISH CAPITAL FACILITIES FEE PROGRAM, MAKE RELATED AND CONFORMING AMENDMENTS TO CHAPTER 4.56 AND ADOPTING CEQA EXEMPTION FINDINGORDINANCE NO. 1646 (2018 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING THE MUNICIPAL CODE TO
ESTABLISH THE CAPITAL FACILITIES FEE PROGRAM AND MAKE
RELATED AND CONFORMING AMENDMENTS TO CHAPTER 4.56
(ORDINANCE NO. 1256 (1994 SERIES)) TO INCLUDE THE CAPITAL
FACILITIES FEE PROGRAM, AND ADOPTING CEQA EXEMPTION
FINDINGS
WHEREAS, existing local, state and federal resources are insufficient to meet the City of
San Luis Obispo's capital improvements infrastructure and facility needs for transportation, parks
and recreation, general government, and public safety; and
WHEREAS, new development generally increases the demand for capital infrastructure
improvements and facilities and affects the quality of the community's infrastructure; and
WHEREAS, the public interest, convenience, health, safety and/or welfare require that
fire, parks and recreation, police, and transportation infrastructure be provided for the maintenance
and enhancement of the quality of life of the City's residents; and
WHEREAS, the City of San Luis Obispo has a critical need to ensure that impacts from
new development to transportation, fire, parks and recreation, police, and general government
(hereinafter defined as "capital improvements") are addressed, and development impact fees are a
commonly -used mechanism to address this need; and
WHEREAS, Article XI, Section 5 of the California Constitution provides that the City, as
a home rule charter city, has the power to make and enforce all ordinances and regulations in
respect to municipal affairs, and Article XI, Section 7, empowers the City to enact measures that
protect the health, safety, and/or welfare of its residents; and
WHEREAS, Section 203 of the San Luis Obispo City Charter provides that the City has
the right and power to make and enforce all laws and regulations in respect to municipal affairs;
and
WHEREAS, the Mitigation Fee Act (AB 1600), codified in California Government Code
Sections 66000-66025, establishes the legal requirements for a jurisdiction to implement a
development impact fee program in conformance with constitutional standards; and
WHEREAS, many cities and counties have adopted and imposed capital improvement
impact fees on new development to ensure that impacts from new development are addressed; and
WHEREAS, on August 16, 2016, the City Council initiated proceedings to adopt impact
fees by directing staff to prepare a nexus study for development impact fees for transportation,
park and recreation, public safety, and general government capital improvements and identified
and appropriated funding for this purpose; and
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Ordinance No. 1646 (2018 Series) Page 2
WHEREAS, policies supporting development impact fees for capital improvements are
included in the recently adopted specific plans and related General Plan amendments, for Avila
Ranch, San Luis Ranch, Orcutt Area, Margarita Area, and the Airport Area, as well as the 2014
Land Use and Circulation Element (LUCE) of the City's General Plan, the 2015 Housing Element,
and the 2013 Economic Development Strategic Plan; and
WHEREAS, on April 21, 2017, the Community Development Director, on behalf of the
City Manager, further initiated proceedings by entering into a professional services contract with
Economic Planning Solutions, Inc. (EPS) to conduct a citywide impact fee nexus study and
implementation strategy; and
WHEREAS, EPS has prepared a Nexus Study entitled "Capital Facilities Development
Impact Fee Nexus Study," for the City of San Luis Obispo, dated March 20, 2018, a copy of which
was previously provided to the City Council and made available to the public; and
WHEREAS, the Nexus Study has documented and confirmed that development in San
Luis Obispo will result in further growth, and that such growth will place additional burdens on
capital improvements infrastructure for transportation, parks and recreation, public safety, and
general government in the City; and
WHEREAS, the Nexus Study further identified the locations and types of development
that will generate those impacts, and thus established the reasonable relationship between the
location and type of development projects paying the fees and the need for capital improvement
infrastructure for transportation, parks and recreation, public safety, and general government
generated by such development; and
WHEREAS, the Nexus Study provided data outlining the various capital improvement
infrastructure that are required to meet the need generated by new development projects in the
City; and
WHEREAS, it is the City's policy that new development should contribute its fair share
to capital improvement infrastructure for transportation, parks and recreation, public safety, and
general government through the imposition of impact fees which will be used to finance, defray,
or reimburse the City for the appropriate portion of the cost of capital infrastructure improvements
which serve such development; and
WHEREAS, the Nexus Study established factors that reasonably estimate the level of
impacts on capital improvement infrastructure for transportation, parks and recreation, public
safety, and general government from new development based on the type of development project,
and thus determined that there is a reasonable relationship between the type of development project
paying the fees and the need for capital improvement infrastructure for transportation parks and
recreation, public safety, and general government; and
WHEREAS, the Nexus Study established eligible uses of revenues from capital
improvement infrastructure for transportation, parks and recreation, public safety, and general
Ordinance No. 1646 (2018 Series) Page 3
government, based on the types of impacts from development projects, and thus determined that
there is a reasonable relationship between the type of development project paying the fees and the
use of the fee revenues; and
WHEREAS, the Nexus Study applied factors that reasonably estimate the level of impacts
on capital improvement infrastructure for transportation, parks and recreation, public safety, and
general government per unit of development and that vary by the type of development project, to
calculate the fee on a development project, and thus determined that there is a reasonable
relationship between the amount of the fee and the cost of the capital improvement infrastructure
for transportation, parks and recreation, public safety, and general government fees attributable to
the development project on which the fee is imposed; and
WHEREAS, through the payment of the fee, developers of residential and non-residential
projects will address a portion of the impact of their developments on capital improvement
infrastructure for transportation, parks and recreation, public safety, and general government; and
WHEREAS, impact fees are necessary to maintain an adequate level of capital
improvement infrastructure for transportation, parks and recreation, public safety, and general
government; and
WHEREAS, the proposed impact fees adopted under this Ordinance are lower than the
maximum legal fees documented in the Nexus Study; and
WHEREAS, EPS also studied the economic feasibility of new development in San Luis
Obispo to provide a basis for creating an impact fee program that can be implemented without
adversely affecting San Luis Obispo's ability to attract new development; and
WHEREAS, the proposed impact fees for capital improvement infrastructure for
transportation, parks and recreation, public safety, and general government balances the need for
such improvements with the goal of not impeding the construction of new development; and
WHEREAS, the City will obtain and allocate funding from various other sources for the
fair share of the costs of improvements identified in the Nexus Study that are not funded by the
impact fees as well as any additional funding required to supplement any policy -based fee
reductions; and
WHEREAS, the capital improvement infrastructure for transportation, parks and
recreation, public safety, and general government fee proposals were discussed in four Developer's
Roundtable meetings (including June 29, 2017, October 5, 2017, December 11, 2017, and March
1, 2018) which consisted of City staff and a cross section of stakeholders with interest associated
with the impact fee program and such materials were also made available to the public; and
WHEREAS, the capital improvement infrastructure for transportation, parks and
recreation, public safety, and general government fee proposals were discussed at one duly noticed
meeting of the Planning Commission during a study session on October 11, 2017; and
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Ordinance No. 1646 (2018 Series) Page 4
WHEREAS, the capital improvement infrastructure for transportation, parks and
recreation, public safety, and general government fee proposals were discussed at two duly noticed
meetings of the City Council during study sessions on October 17, 2017 and January 9, 2018; and
WHEREAS, following those study sessions the City Council directed city staff return with
revisions to the impact fees and accompanying legislation; and
WHEREAS, the impact fees were scheduled to be considered at regular, duly noticed
(including newspaper ads published on March 17, 2018 and March 24, 2018) meeting of the City
Council on April 3, 2018; and
WHEREAS, this Ordinance was considered, after a duly noticed public hearing, at a
regular meeting of the City Council on April 3, 2018.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Recitals. The recitals contained in this Ordinance are true and correct and
are an integral part of the Council's decision, and, are hereby adopted as findings.
SECTION 2. Environmental Determination. The City Council finds and determines the
adoption of this Ordinance is (1) not a Project under the California Environmental Quality Act
"CEQA") and is therefore exempt pursuant to CEQA Guidelines section 15378(b)(4); (2)
statutorily exempt pursuant to CEQA Guidelines section 15273(a)(4) (Rates, Tolls, Fares and
Charges for obtaining funds for capital projects necessary to maintain service within existing
service area); (3) not intended to apply to specific capital improvement projects and as such it is
speculative to evaluate such projects now and any specifically identified transportation projects
were already evaluated under CEQA and imposed as mitigation measures in previously certified
EIRs and /or adopted mitigated negative declarations; and/or (4) not intended to, nor does it,
provide CEQA clearance for future development -related projects by mere payment of the fees.
Each of the foregoing provides a separate and independent basis for CEQA compliance and when
viewed collectively provides an overall basis for CEQA compliance.
SECTION 3. This Ordinance shall be known as the "Capital Facilities Development
Impact Fees Ordinance."
SECTION 4. Chapter 4.56 of the City of San Luis Obispo Municipal Code is hereby
repealed and replaced in its entirety with Exhibit A.
SECTION 5. Severability. If any subdivision, paragraph, sentence, clause, or phrase of
this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the
remaining portions of this Ordinance, or any other provisions of the city' s rules and regulations.
It is the city' s express intent that each remaining portion would have been adopted irrespective of
the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared
invalid or unenforceable.
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Ordinance No. 1646 (2018 Series)
Page 5
SECTION 6. A summary of this ordinance, together with the names of Council members
voting for and against, shall be published at least five (5) days prior to its final passage, in The
Tribune, a newspaper published and circulated in this City. This Ordinance shall go into effect at
the expiration of thirty (30) days after its final passage.
INTRODUCED on the 3`d day of April 2018, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 17`h day of April 2018, on the following vote:
AYES: Council Members Gomez, Pease and Rivoire,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
MaytrTi$idi Harmon
ATTEST:
1
Teresa Purrington
City Clerk
F.11=911911 mylyr M91=1
J. Missine Dietrick
ty Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of Sari Luis Obispo, California, this _._ day of{j l
Teresa Purrington
City Clerk
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Ordinance No. 1646 (2018 Series) Page 6
EXHIBIT A
Chapter 4.56 - DEVELOPMENT IMPACT FEES
Sections:
4.56.010 - Purpose.
The council declares that the fees required to be paid by this chapter are established for the
purpose of protecting the public health, safety and general welfare, and implementing the policies
of the general plan, by providing adequate public facilities to support orderly development.
4.56.020 - Definitions.
Unless otherwise required by the context, the following definitions shall govern the
construction of this chapter:
"Commercial development" means the development or use of land for any retail, office,
service commercial or other business purpose.
"Council" means the city council of the city of San Luis Obispo.
"Development" or "development project" means any project undertaken for the purpose of
development, and includes a project involving the issuance of a permit for construction or
reconstruction, but not a permit to operate. Development or development project shall include: (i)
approvals of land divisions pursuant to Title 16 of this code, including approval of lot line
adjustments, certificates of compliance, parcel maps, tract maps and condominium conversions;
(ii) land use approvals pursuant to Title 17 of this code, including re -zonings or the approval of
development plans, site plans, minor use permits, variances, but excepting approval of San Luis
Obispo general plan/land use ordinance amendments; (iii) For the issuance of any occupancy
permit or final building inspection; and (iv) all other approvals of real property development,
which approvals are subject to the jurisdiction of the city of San Luis Obispo and which approvals
are subject to the exercise of the discretion of the city council, planning commission, or community
development director. For purposes of this chapter, new development includes any change of use
or occupancy which increases the traffic service requirements of a development.
"Dwelling unit" means a structure, or portion of a structure that is used for separate residential
occupancy by an individual, a family or group of unrelated individuals.
"Impact fee" means a monetary exaction charged to the applicant in connection with approval
of a development project for the purpose of defraying all or a part of the cost of the public facilities
related to the development project. This definition does not include fees specified in Government
Code Section 66477, or fees for processing applications for permits or approvals.
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Ordinance No. 1646 (2018 Series)
EXHIBIT A
Page 7
"Imposition of fees" occurs when they are imposed or levied on a specific development.
"Multifamily residential development" means development or use of land for residential
purposes involving more than one dwelling unit in a single structure.
"Public facilities" means public improvements, public services or community amenities.
"Single-family residential" means development or use of land for residential purposes
involving no more than one dwelling unit in a single structure.
4.56.030 - Fees—Imposition and application.
This chapter establishes development impact fees which are imposed as a condition of
approval upon all development projects for which a building permit is issued on or after the
effective date of the ordinance codified in this chapter. Those impact fees are established for the
following public facilities:
A. General Government Impact Fee;
B. Fire Impact Fee
C. Parkland In -Lieu Fee;
D. Parks and Recreation Development Impact Fee;
E. Police Impact Fee; and
F. Transportation Impact Fee.
Water and wastewater impact fees shall be governed by Title 13. These impact fees are
established in order to pay for the capital costs of public facilities reasonably related to the needs
of new development in the city. At least once every five years, the council shall review the basis
for the impact fees to determine whether the fees are still reasonably related to the needs of new
development. In establishing these fees, the council has considered the effect of the fees with
respect to the city's housing needs as established in the housing element of the general plan.
4.56.040 - Fees to be set by resolution.
The amount of fee assessments shall be determined by resolution adopted by the city council.
Fees shall be adjusted annually by modifying the adopted value up or down in conformance with
the Engineering News Record Construction Cost Index. The factor for the adjustment of the fees
shall be calculated and established each January by the director of financial services, utilizing the
following formula:
Factor =
1 + Current Index - Base Index for Date of Ado tion
Base Index for Date of Adoption
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Ordinance No. 1646 (2018 Series)
EXHIBIT A
4.56.050 - Payment of fees.
Page 8
Except as otherwise provided in Section 66007 of the Government Code, impact fees shall be
paid to the city at the time a building permit is issued. In cases where payment of all or part of the
required fee is deferred at the time of building permit issuance, the community development
director may require that the applicant, at the applicant's expense, execute a contract with the city
to pay all deferred impact fees prior to final inspection and/or issuance of a certificate of occupancy
for the project. The contract shall specify the amount of the unpaid fee and a legal description of
the property affected. It shall be recorded in the office of the county recorder and shall constitute
a lien for the payment of the fees, which shall be enforceable against the successors in interest of
the property owner. When impact fees are paid in full, the city, at the expense of the applicant or
property owner, shall execute a release of any lien securing those impact fees.
4.56.060 - Protests.
Any party subject to the fees established by this chapter may protest the imposition of those
fees by meeting all of the following requirements:
A. Tendering any required payment in full or providing satisfactory evidence of
arrangements to pay the fee when due or ensure performance of the conditions necessary
to meet the requirements of the imposition of the fee.
B. Serving written notice of protest on the city council which notice shall contain all of the
following information:
1. A statement that the required payment is tendered, or will be tendered when due,
under protest;
2. A statement informing the city council of the factual elements of the dispute and the
legal theory forming the basis for the protest.
C. Serving the written notice of protest, no later than ninety (90) days after the date of the
imposition of the fees.
The city council shall consider that protest at a hearing to be held within sixty (60) days after
serving the written notice of protest. The decision of the city council shall be final.
4.56.070 - Exemptions.
The fees imposed under this chapter shall not apply to the following:
A. The United States or to any agency or instrumentality thereof, the state of California or
any county or other political subdivision of the state of California;
B. Remodeling or alteration of an existing residential building, but only if the number of
dwelling units is not increased or the use changed;
C. That portion of a structure that existed before the addition of dwelling units or the
enlargement of floor area in a nonresidential structure. If a structure is destroyed or
demolished and replaced within two years from the date of demolition, the impact fees
shall be based on the service requirements of the new development less the service
requirements of the development which it replaced.
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Ordinance No. 1646 (2018 Series)
EXHIBIT A
4.56.080 - Credits and reimbursement.
Page 9
If the applicant for approval of any development project is required by the city, as a condition
of approval to construct facilities, the cost of which has been used in the calculation of impact fees
which apply to that project, the applicant may receive a credit against those impact fees, up to the
amount charged for the same type of facility. If the cost of the improvements constructed by the
applicant exceeds the amount of the impact fees charged to the development project for the same
type of facility, the excess cost may be reimbursed to the applicant from other impact fee revenues
within a reasonable time. To qualify for reimbursement, the applicant must enter into a
reimbursement agreement with the city, and any such agreement must specify the amount to be
reimbursed and the approximate schedule of the reimbursement.
4.56.090 - Disposition and use of fees.
The director of financial services shall establish a separate fund or account for each type of
facility listed in Section 4.56.030. All impact fees collected by the city shall be deposited in the
fund or account established for the specific type of facility for which the fee is collected. Any
interest earned on funds deposited in a fund or account shall be deposited in that fund or account.
Funds deposited in those accounts shall be used only to pay for design and construction,
including construction administration, of projects identified in resolutions or other formal city
council action adopted pursuant to Section 4.56.030 as the basis for the impact fees, or for
reimbursements as provided in Section 4.56.080.
4.56.100 - Refunds.
If impact fees collected by the city have not been expended or designated for the intended
purpose within five years following their collection, the city shall either refund those fees as
provided in Section 66001 of the Government Code, or make findings as required by that section
to retain the fees. The refund provision of this chapter shall apply only to moneys in possession of
the city and need not be made with respect to any bonds, letters of credit or other items given to
secure payment at a future date.
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