Title
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING THE FEE DEFERRAL PROGRAM TO REQUIRE PAYMENT OF FEES PRIOR TO BUILDING PERMIT FINAL INSPECTION INSTEAD OF BUILDING PERMIT ISSUANCE (FIRST READING)
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RECOMMENDED ACTION
Recommended Action
Council place the ordinance on first reading.
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SUMMARY
Since 2009 certain building permit fees have been collected prior to final inspection rather than at building permit issuance. This has been termed the "Fee Deferral Program" and was an effort to not unfairly burden those willing to develop during the recession while at the same time not impacting the quality and timing of City services and facilities. The Fee Deferral Program was a trial program and is set to expire at the end of this year. Staff recommends amending the Fee Deferral Program to extend the Fee Deferral Program until such time as City Council determines, in accordance with California Government Code ยง66007, that payment of fees should occur at a time earlier than building permit final inspection.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator 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(b)(4) 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 necessary.
BOARD/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
On January 6, 2009, City Council passed Ordinance No. 3120 (Attachment 1) establishing the Development and Processing Impact Fee Payment Plan Program ("Fee Deferral Program") to encourage the construction of residential and non-residential development projects within the City. This Ordinance allowed Developers to pay all fees subject to the Fee Deferral Program up to 12 months from the date of issuance of building permits, in addition to limiting the duration of the Fee Deferral Program to December 31, 2010. Later, on April 21, 2009, City Council expanded the Fee Deferral Program to include Park Fees by the adoption of Ordinance No. 3126 (Attachment 2).
On September 14, 2010, Ordinance No. 3163 (Attachment 3) obtained its second reading and adoption by City Council modifying the Fee Deferral Program. Ordinance No. 3163 allowed for the payment of the fees subject to the Fee Deferral Program prior to final inspection or certificate of occupancy upon request of the Developer and the determination by the City that such fees were not needed at an earlier time. This Ordinance took into effect 30 days after final passage and was set to expire automatically on December 31, 2011.
To continue the support of development during the economic downturn, City Council adopted three additional ordinances to extend the life of the Fee Deferral Program: the first extension of the program to December 31, 2012 was done by Ordinance No. 3220 (Attachment 4); the second extension to December 31, 2013 with Ordinance No. 3242 (Attachment 5); and the final to December 31, 2014 with Ordinance No. 3280 (Attachment 6).
Without this amendment to the Fee Deferral Program, the Fee Deferral Program will expire on December 31, 2014. Building permits issued prior to that date will be required to pay all fees not previously paid, prior to a final inspection. Building permits issued after December 31, 2014 will be required to pay all fees at building permit issuance or final map approval as required for their project approvals.
Recommended Changes
The recommended changes to Section 8 of Ordinance No. 3163 follow:
Section 8. Expiration of this Ordinance
This Ordinance shall take effect thirty days after final passage. and shall automatically expire on December 31, 2014, and as of that date, is deemed repealed. Notwithstanding the foregoing, any building permit issued prior to expiration of this Ordinance shall not be required to pay fees until Final Inspection or Certificate of Occupancy, provided none of the events identified in Section 6(B) have occurred.
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 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 Fee Deferral Program supports the Economic Vitality goal as it seeks to incentivize development opportunities within the City of Chula Vista while keeping Operational Excellence constant.
CURRENT YEAR FISCAL IMPACT
The adoption of this proposed Ordinance will not have an impact to the General Fund.
ONGOING FISCAL IMPACT
There is no impact to the general fund. There is also no impact created by deferring fees until final inspection. City fees have an automatic cost inflator "built in" so, if the fees have increased between issuance of a building permit and the date the fees are paid, the applicant is subject to the higher fees.
ATTACHMENTS
Attachment 1: Ordinance No. 3120 - Ordinance of the City of Chula Vista Establishing the Development and Processing Impact Fee Payment Plan Program.
Attachment 2: Ordinance No. 3126 - Ordinance of the City Council of the City of Chula Vista Amending Title 17, Section 17.10.100 of the Chula Vista Municipal Code to Facilitate the Deferral of In-Lieu Park Fees.
Attachment 3: Ordinance No. 3163 - Ordinance of the City of Chula Vista Modifying the Fee Deferral Program.
Attachment 4: Ordinance No. 3220 - Ordinance of the City of Chula Vista Amending Section 8 of Ordinance 3163 in Order to Extend the Fee Deferral Program.
Attachment 5: Ordinance No. 3242 - Ordinance of the City of Chula Vista Extending until December 31, 2013, the Fee Deferral Program for Certain Development Fees to Allow Payment Prior to Building Permit Final Inspection Instead of at Building Permit Issuance.
Attachment 6: Ordinance No. 3280 - Ordinance of the City of Chula Vista Amending City of Chula Vista Ordinance No. 3163 to Extend Term of the Fee Deferral Program Which Allows for Certain Development Fees to be Paid Prior to Building Permit Final Inspection Instead of at Building Permit Issuance.
Staff Contact: Sandra Hernandez, Associate Engineer