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A. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 17.10 (PARKLANDS AND PUBLIC FACILITIES) RELATING TO THE PARK ACQUISITION AND DEVELOPMENT FEE REQUIREMENT FOR HOTELS AND MOTELS (FIRST READING)
B. RESOLUTION NO. 2014-016 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER 16 (DEVELOPMENT AND IN-LIEU FEES) OF THE CITY'S MASTER FEE SCHEDULE
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RECOMMENDED ACTION
Recommended Action
Council place the ordinance on first reading and adopt the resolution.
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SUMMARY
Chapter 17.10 of the Chula Vista Municipal Code requires the dedication of land or payment of fees in-lieu thereof (or a combination of both) for park purposes. The in-lieu fees, known as Park Acquisition and Development (PAD) fees are collected from all residential development, including single-family, multifamily, mobile homes and hotels/motels. The proposed action would eliminate the assessment of PAD fees on hotel/motel projects.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the proposal consists of a fiscal action that will not result in a potentially significant physical impact on 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
The Chula Vista Parkland Dedication Ordinance (PDO), first adopted in1971, details requirements for land dedication, park improvements and in-lieu fees. The PDO requires the dedication of parklands or payment of in-lieu fees equivalent to three acres per 1,000 new residents. All residential development, including single-family, multifamily, mobile homes and hotels/motels are subject to the requirements of the PDO.
The Parkland Acquisition and Development (PAD) fee program provides the mechanism for collecting in-lieu fees, as provided for in the PDO. Developers may pay PAD fees in lieu of dedicating land and installing parkland improvements. The PAD fee calculation is based upon the three acres per 1,000 resident standard required by the PDO, ensuring the collection of fees sufficient to acquire and construct the facilities necessary to serve new development.
In addition to the PDO, the City also considers parkland levels of service through the Growth Management Oversight Commission (GMOC). The GMOC was created to monitor threshold standards for several quality of life indicators, including parks and recreation. The GMOC threshold standard for parks and recreation is three acres of public parkland per 1,000 residents. The calculation of threshold performance considers residential development only; hotels/motels are not included as they do not generate permanent changes in population.
In order to bring consistency between the PDO, the PAD fee, and the GMOC, staff recommends removing hotels/motels from the PDO and PAD fee. This change also brings the City's PAD fee program into alignment with other San Diego County jurisdictions, none of whom assess park fees on hotel/motel development.
The changes to the PAD fee are outlined in the table below:
Table 1 - Comparison of Current and Proposed Fees
Geographic Area |
Current Amount per room |
Proposed Amount per room |
Hotel/Motel East Chula Vista |
$7,607 |
$0 |
Hotel/Motel West Chula Vista |
$4,320 |
$0 |
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1), is not applicable to this decision. Staff is not independently aware, and has not been informed 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 PAD fee change addresses the Economic Vitality goal as more hotels will find it attractive to locate in the City of Chula Vista, providing more Transient Occupancy Tax ("TOT") to fund City services.
CURRENT YEAR FISCAL IMPACT
Currently, there are three pending hotel projects that will be impacted by the outcome of this ordinance. No hotel PAD fees would be generated by these projects with the passage of this ordinance; however, the Parks Program did not anticipate these revenues and will still be able to provide 3 acres per thousand population with or without the hotels.
ONGOING FISCAL IMPACT
All hotels/motels in Chula Vista collect a 10% Transient Occupancy Tax (TOT) from their guests and remit those funds to the City. The TOT taxes generated by hotels/motels are discretionary revenues, supporting general City services. New hotels/motels would generate additional TOT revenues to the City; the actual amount generated will vary based on hotel room rates, occupancy rates, and total room counts.
ATTACHMENTS
Ordinance
Attachment "A", Modified Municipal Code
Resolution
Exhibit 1, Modified Master Fee Schedule