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ORDINANCE NO. 3354 OF THE CITY OF CHULA VISTA REPEALING ORDINANCE NO. 2533 FOR THE TELEGRAPH CANYON SEWER BASIN DEVELOPMENT IMPACT FEE (SECOND READING AND ADOPTION)
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RECOMMENDED ACTION
Recommended Action
Council adopt the ordinance.
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SUMMARY
In 1992, the City established the Telegraph Canyon Sewer Basin Development Impact Fee (DIF) by City Council Ordinance 2533 (Attachment 1) to fund the necessary improvements to the Telegraph Canyon Trunk Sewer. Now that the Telegraph Canyon Trunk Sewer improvements are constructed and the benefit area is nearly built out, staff recommends that the fee be repealed.
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; repealing the Telegraph Canyon Sewer Basin Development Impact Fee (DIF) is not a "Project", as defined under Sections 15378(b)(4) and 15378(b)(2) of the State CEQA Guidelines; therefore, pursuant to Section 15060 (c)(3) of the State CEQA Guidelines the activities is not subject to CEQA.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The Telegraph Canyon Sewer Development Impact Fee (DIF) was established on November 10, 1992, by Ordinance No. 2533 (Attachment 1) to fund the construction of the required trunk sewer improvements within the Telegraph Canyon Basin. These improvements were necessary to provide additional capacity of the existing Telegraph Canyon Trunk Sewer and to facilitate the new development within the basin. The DIF benefit area consists of Rancho Del Rey Specific Plan, Otay Ranch, and a portion of Rolling Hills and Eastlake, all of which are nearly built out Attachment 2 shows the general location of the basin.
The sewer improvements were completed in two phases:
• Phase 1-Construction of a 300-ft parallel sewer line along Telegraph Canyon Road, from Melrose Avenue to approximately 400 feet easterly (West of Interstate 805).
• Phase 2-Construction of new sewer lines in the same location as the existing line, utilizing the pipe-bursting method from Crest Drive/Oleander Avenue to approximately 1,450 feet east of Paseo Ladera.
In 2001, the balance of the Telegraph Canyon Sewer DIF was approximately $1 million, which was insufficient to completely fund the required DIF improvements. Council adopted Resolution 2001-378 (see Attachment 3) authorizing the use of Trunk Sewer Capital Reserve Funds to close the funding gap and help construct the remaining DIF facilities. The DIF facilities were completed in 2002 and there are no additional capacity improvement projects needed for the facility.
Staff recommends repealing Ordinance 2533 to eliminate the DIF. The continued administrative costs for the DIF fund outweighs the revenues expected from the remaining approximately 40 Equivalent Dwelling Units in the benefit area. Remaining funds in the DIF will be returned to the Trunk Sewer Capital Reserve Fund.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found Council Member John McCann has real property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18705.2(a)(11), this item presents a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov’t Code § 8700, et seq.) for the above-identified member.
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. Ordinance 2533 supported the Economic Vitality goal in the City’s Strategic Plan. It provided funding for planning and construction of sewer infrastructure supporting new development in the basin.
CURRENT YEAR FISCAL IMPACT
Approval of this Ordinance will eliminate the Telegraph Canyon Sewer Basin DIF fund as the collection of these fees will be discontinued as all DIF facilities have been completed and the fee is no longer needed.
The fiscal year 2015-16 Adopted Budget included the transfer of the remaining fund balance (approximately $1.1 million) in the Telegraph Canyon Sewer Basin DIF Fund to the Trunk Sewer Capital Reserve Fund to help repay the funds used during construction of the DIF facilities.
ONGOING FISCAL IMPACT
None.
ATTACHMENTS
Attachment 1: Ordinance 2533
Attachment 2: Telegraph Canyon Sewer DIF Basin
Attachment 3: Resolution 2001-378
Staff Contact: Luis Pelayo, Acting Senior Civil Engineer