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ORDINANCE NO. 3360 OF THE CITY OF CHULA VISTA AMENDING ORDINANCE NO. 3064 RELATING TO A PEDESTRIAN BRIDGE DEVELOPMENT IMPACT FEE FOR OTAY RANCH VILLAGES ONE, TWO, FIVE, AND SIX RELATING TO THE ANNUAL REVIEW AND ADJUSTMENT OF FEES (SECOND READING AND ADOPTION)
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RECOMMENDED ACTION
Recommended Action
Council adopt the ordinance.
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SUMMARY
The City Council established the original Otay Ranch Pedestrian Bridge Development Impact Fee (Pedestrian Bridge DIF) on January 5, 1999 by Ordinance 2767. The original Pedestrian Bridge DIF was set up to fund the construction of the pedestrian bridges between Villages One and Five. On January 7, 2003, by Ordinance No. 2892, the City Council amended the original Pedestrian Bridge DIF to include Otay Ranch Village Six and its fair share of the costs for the bridge improvements. On February 20, 2007, by Ordinance No. 3064, the City Council amended the Pedestrian Bridge DIF to include Otay Ranch Village Two and its fair share of the costs for the bridge improvements.
Tonight, Council will consider the adoption of an update to the Pedestrian Bridge DIF to account for the recent increase in units for Otay Ranch Village Two. The fee, payable at issuance of a building permit, will decrease from $1,114 to $843 for single family dwelling unit and from $826 to $625 for multifamily dwelling units. This will be the third adjustment of the fee since its inception in February 18, 2003. The public hearing has been duly noticed.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
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Environmental Determination
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
Otay Ranch Village One, Two, Five and Six are located on the western edge of the Otay Valley Parcel, south of Telegraph Canyon Road and Otay Lakes Road, west of SR125, east of the Sunbow subdivision and north of Wolf Canyon and Birch Road (Exhibit 1).
As a condition of development, the villages were required to annex into or establish a development impact fee, or other funding mechanism, to fund the construction of the pedestrian bridges serving Villages One, Two, Five and Six. Four pedestrian bridges are funded by the Pedestrian Bridge DIF. The first was the pedestrian bridge crossing La Media Road connecting Village One and Five (North La Media Bridge). The second bridge connects Village One to Village Two over Olympic Parkway (West Olympic Parkway Bridge). The third connects Village Five to Village Six and also spans Olympic Parkway (East Olympic Parkway Bridge). The last bridge will be located along Santa Venetia Road and crosses La Media Road and connects Village Two with Village Six (South La Media Bridge) (Exhibit 2) . The North La Media Bridge, West Olympic Parkway Bridge and the East Olympic Parkway Bridge were fully funded and are now constructed.
Area of Benefit
The Area of Benefit for the updated Pedestrian Bridge Development Impact Fee Program for Otay Ranch Village One, Two, Five and Six is generally described as the area surrounding Olympic Parkway and La Media Road (see Exhibit 2), and remains unchanged as outlined by Ordinance No. 3064.
Pedestrian Bridge Report
The “Pedestrian Bridge Development Impact Fee Report for Otay Ranch Village 2” (see Exhibit 3), dated June 2, 2015, was prepared by Development Planning & Financing Group at the request of Baldwin and Sons, LLC. The intent of this report is to determine an appropriate pedestrian bridge development impact fee based on the updated number of units, the area of benefit, the type of land-use and its corresponding benefit. City staff concurs with the findings of the report.
The report contains the revised total cost estimate for the remaining South La Media Bridge, in the amount of $3,482,900. The fee, payable at issuance of a building permit, will be $843 per single-family detached (SFD) dwelling unit and $625 per multiple-family (MF) dwelling. This represents a 24% decrease in the fee from the original $1,114 SFD, $826 MF rates, established on February 20, 2007. The decrease in fee was due to an increase in the number of units within Village Two thus a greater number of units remaining to spread the cost over.
The report also outlines in greater detail the methodology used to develop the Pedestrian Bridge Development Impact Fee. In short, the fee is based on persons per household factors similar to the application in Municipal Code 17.10, where households with larger numbers of persons per household inure greater benefit than smaller households. The persons per household factors used for the Pedestrian Bridge Development Impact Fee are 3.52 for single-family detached dwellings and 2.61 for multifamily dwelling units. The methodology has not changed with this amendment.
Pedestrian Bridges and Village Connectivity
The pedestrian bridges of Otay Ranch, Villages One, Two, Five, and Six are an integral part of the Village Pathway that forms a loop through these Villages. The Village Pathway provides pedestrians, bicycles and carts with a route that is separated from the major roadways of this part of Otay Ranch. The bridges and the Pathway support the pedestrian orientation of these Villages and tie them together with a continuous and safe way to cross the six lanes of Olympic Parkway and La Media Road. Due to each individual bridge being part of a whole system, each Village derives a benefit from all the bridges in proportion to the number of units in that Village.
Annual Fee Adjustment
An amendment to the Pedestrian Bridge DIF ordinance authorizing automatic fee adjustments based upon changes in the Engineering News Record (ENR)’s Construction Cost Index is also recommended. The annual average changes in labor and materials costs as computed by the recommended index reflect industry standards, and are appropriate for the calculation construction cost changes. The proposed automatic annual update of the fee is identical to the methodology applied to other development related fees and PAD fees within the City such that all automatic fee increases from July to July will be effective the first of October 1 of each year. This mechanism will ensure the collection of sufficient funds to construct the facilities while minimizing the expense to the City associated with the preparation of a Master Fee Schedule update.
Meetings with the Master Developers
Staff has had meetings with Baldwin and Sons, LLC to discuss the Pedestrian Bridge Development Impact Fee Program for Otay Ranch Villages One, Two, Five and Six. The Developer does not object to the proposed Pedestrian Bridge DIF adjustment
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The proposed action addresses the Economic Vitality and Healthy Community goals. The project supports the Economic Vitality goal through the implementation of the General Plan to develop Otay Ranch and provides a funding source for the construction of public facilities. It also addresses the Healthy Community goal by supporting the construction of the Village Pathway and promoting alternative transportation such as walking and cycling.
CURRENT YEAR FISCAL IMPACT
There is no financial impact to the General Fund. All costs associated with updating the Pedestrian Bridge DIF will be borne by the Developer.
ONGOING FISCAL IMPACT
The revenue of this Pedestrian Bridge DIF will be maintained separately from the General Fund. The Developer has paid for all costs related to the preparation of the Report.
ATTACHMENTS
Attachment 1 - Pedestrian Bridge Facility Map
Attachment 2 - Area of Benefit
Attachment 3 - Pedestrian Bridge DIF Report
Staff Contact: Chester Bautista, Associate Civil Engineer (619) 476-5332