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HomeMy WebLinkAboutO-1663 updated transportation development impact fee programO 1663 ORDINANCE NO. 1663 (2019 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE MUNICIPAL CODE TO ESTABLISH AN UPDATED TRANSPORTATION DEVELOPMENT IMPACT FEE PROGRAM FOR THE LOS OSOS VALLEY ROAD SUBAREA AND MAKE RELATED AND CONFORMING AMENDMENTS TO CHAPTER 4.56 (ORDINANCE NO. 1256 (1994 SERIES)) TO INCLUDE THE LOS OSOS VALLEY ROAD 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 needs for transportation improvements; and WHEREAS, new development generally increases the demand for transportation improvements and affect the quality of the community’s infrastructure; and WHEREAS, the public interest, convenience, health, safety and/or welfare require that transportation improvements 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 on the City’s transportation network 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, in April 2018, the City Council adopted the Citywide Capital Facilities Fee program, and in so doing, left the Los Osos Valley Road Subarea fee program in place; and WHEREAS, in April 2018, the City entered into an Agreement with the Avila Ranch developer in which the City agreed to update the Los Osos Valley Road Subarea Transportation Ordinance No. 1663 (2019 Series) Page 2 O 1663 Impact Fee Program, thereby directing staff to prepare a nexus study, and identified funding for this purpose; and 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, in February 2019, the Public Works Director, on behalf of the City Manager, further initiated proceedings by to entering into a professional services contract with Economic & Planning Solutions, Inc. (EPS) to update the Los Osos Valley Road Subarea transportation impact fee program; and WHEREAS, EPS has prepared a Nexus Study entitled “Los Osos Valley Road Subarea Transportation Impact Fee Nexus Study,” for the City of San Luis Obispo, dated June 6, 2019, 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 the Los Osos Valley Road Subarea of San Luis Obispo will result in further growth, and that such growth will place additional burdens on the City’s transportation system; 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 the transportation improvements generated by such development; and WHEREAS, the Nexus Study provided data outlining the transportation improvement infrastructure that is required to meet the need generated by new development projects in the Los Osos Valley Road Subarea; and WHEREAS, it is the City’s policy that new development should contribute its fair share to transportation improvement infrastructure 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 the improvements which serve such development; and WHEREAS, the Nexus Study established trip rate factors that reasonably estimate the level of impacts on transportation improvement infrastructure 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 the identified transportation improvement infrastructure; and WHEREAS, the Nexus Study established eligible uses of revenues from transportation improvement infrastructure, 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 Ordinance No. 1663 (2019 Series) Page 3 O 1663 WHEREAS, the Nexus Study applied factors that reasonably estimate the level of impacts on transportation improvement infrastructure 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 transportation improvement infrastructure 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 in the Los Osos Valley Road Subarea will address a portion of the impact of their developments on transportation improvement infrastructure; and WHEREAS, impact fees are necessary to maintain an adequate level of transportation improvement infrastructure; and WHEREAS, the proposed impact fees adopted under this Ordinance are consistent with the maximum legal fees documented in the Nexus Study; and WHEREAS, the proposed impact fees balance the need for such improvements with the goal of not impeding the construction of new development; and WHEREAS, the updated fee program was discussed in a Developers’ Roundtable meeting on June 19, 2019 and which consisted of City staff and a cross section of stakeholders; and WHEREAS, the updated impact fees were scheduled to be considered at regular, duly noticed (including newspaper ads published on June 20th, 2019) meeting of the City Council on July 2, 2019; and WHEREAS, this Ordinance was considered, after a duly noticed public hearing, at a regular meeting of the City Council on July 2, 2019. 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. Ordinance No. 1663 (2019 Series) Page 4 O 1663 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 “Los Osos Valley Road Subarea Transportation Development Impact Fee 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. Ordinance No. 1663 (2019 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 New Times, 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 2nd day of July 2019, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 16th day of July 2019, on the following vote: AYES: Council Members Christianson, Gomez, and Stewart, Vice Mayor Pease and Mayor Harmon NOES: None ABSENT: None ATTEST: Teresa Purrington City Clerk IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this 1:�21- day of &(,,&aILS� , 2019. Teresa Purrington City Clerk 01663 Ordinance No. 1663 (2019 Series) Page 6 EXHIBIT A O 1663 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, lodging, 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. "Imposition of fees" occurs when they are imposed or levied on a specific development. Ordinance No. 1663 (2019 Series) Page 7 EXHIBIT A O 1663 "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 Fees (Citywide and designated subareas) 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 California Construction Cost Index as published by the California Department of General Services. The factor for the adjustment of the fees shall be calculated and established each July by the Finance Director, utilizing the following formula: Factor = 1 + Current Index - Base Index for Date of Adoption Base Index for Date of Adoption 4.56.050 - Payment of fees. 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 ( ) Ordinance No. 1663 (2019 Series) Page 8 EXHIBIT A O 1663 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. Ordinance No. 1663 (2019 Series) Page 9 EXHIBIT A O 1663 4.56.080 - Credits and reimbursement. 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.