HomeMy WebLinkAboutZCA 12-01; Development Impact Fee Deferral; Zone Code Amendment (ZCA)The City of Carlsbad Planning Division
A REPORT TO THE PLANNING COMMISSION
P.C. AGENDA OF: December 5, 2012
ItemNo. 0
Application complete date: N/ A
Project Planner: Scott Dormell
Project Engineer: N/ A
SUBJECT: ZCA 12-01 -DEVELOPMENT IMPACT FEE DEFERRAL-A request for a
recommendation of approval to amend Zoning Ordinance chapters 21.85
(fuclusionary Housing) and 2 1.90 (Growth Management) by adding sections
regarding deferral of development impact fees.
I. RECOMMENDATION
That the Planning Connnission ADOPT Planning Commission Resolution No. 6935
RECOMMENDING APPROVAL of ZCA 12-01 to amend the Zoning Ordinance by adding
Sections 21.85.195 and 21.90.195 based on the findings contained therein.
II. INTRODUCTION
This project consists of a city-initiated Zone Code Amendment. The amendment affects two
chapters in the Zoning Ordinance: Chapter 21.85 regarding inclusionaty housing and Chapter
21.90 regarding growth management. The amendment would add similar sections to each chapter
that petmit, at a developer's request, defetment of development impact fees to fmal inspection.
Clment requirements typically mandate payment of these fees before a final map records or
constmction petmits are issued.
III. PROJECT DESCRIPTION AND BACKGROUND
At its September 11, 2012, meeting, the City Council received a repmt on the deferral of
development impact fees and directed the city attorney to retum with implementing documents.
The proposed Zone Code Amendment is necessary to help implement this direction.
Development impact fees are imposed by the city on new development for the purpose of
funding the constmction of various public facilities. Fees are required by ordinances, resolutions,
or policies of the City Colmcil. They are generally collected for all building projects at the time
of fmal map recordation, grading petmit issuance or building petmit issuance.
The action by the Council stems from a Building fudustry Association request that Carlsbad
consider developing and implementing a development impact fee defenal program to assist new
constmction and to encourage economic activity during the cunent economic climate. At the
September 11 meeting, city staff outlined the basic parameters of such a program for the city,
including the fees appropriate for deferral and the conditions under which deferral could occur.
The following details of the city's fee deferral program are provided primarily for the Planning
Connnission' s infmmation.
ZCA 12-01 – DEVELOPMENT IMPACT FEE DEFERRAL
December 5, 2012
Page 2
Fees recommended for deferral. It is appropriate to defer only certain development impact fees. For example, those fees collected for impacts created upon the completion of project are suitable
for deferral, such as traffic impact fees collected to mitigate the traffic generated by new
homeowners. Conversely, deferral of other development impact fees is not recommended as they
are collected for impacts that occur immediately upon construction. The Habitat Management Plan Mitigation Fee, collected to offset development impacts to vegetation, is an example of such a fee not proposed for deferral.
The list below describes the fees recommended for deferral.
Park In Lieu - Utilized for the development and construction of new or the rehabilitation
of existing public park and recreational facilities.
Local Facilities Management Plan - Utilized for the construction of improvements or
facilities identified in a local facilities management plan and which are not otherwise
financed by any other fee.
Traffic Impact - Utilized to construct or finance various circulation road improvements.
Master Drainage (Planned Local Drainage Area) - Utilized for constructing planned local
drainage facilities.
Sewer Capacity and Benefit Area - Utilized for the construction of improvements to the
sewer system.
Housing Impact and In Lieu - Utilized for the affordable housing needs of lower-income
households.
Only two of the fees listed above would be impacted by the proposed amendment to the Zoning
Ordinance: the Local Facilities Management Plan (LFMP) and Housing Impact and In Lieu fees.
The housing fees fund affordable housing development, while LFMP fees help pay for infrastructure.
Conditions recommended for the fee deferral program. Staff has also identified the following
particular projects and conditions under which deferral of development impact fees may occur:
Fee deferral would apply only to the development impact fees recommended; these fees
are listed above.
For residential projects, fee deferral would only apply to projects of five or more
dwelling units.
For non-residential development, fee deferral would apply to new commercial, office, or
industrial buildings or building additions; tenant improvements would not be subject to
fee deferral.
Deferred fees would be paid prior to requesting a final inspection for each individual
building permit.
Deferred fees would be calculated and paid at an amount based on the City Council
adopted fee schedule in effect at the time of requesting a final inspection.
The ordinance to defer fees would sunset two years from its effective date unless
extended by action of the City Council.
ZCA 12-01 – DEVELOPMENT IMPACT FEE DEFERRAL
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To fully implement the Council’s direction, amendments are required to titles of the Municipal Code besides the Zoning Ordinance. Amendments to other Municipal Code titles are not subject
to Planning Commission review. Exhibit “X” attached to the recommended Planning
Commission resolution is a draft City Council ordinance identifying all parts of the Municipal
Code proposed for revision; the two amendments proposed to the Zoning Ordinance (Title 21) are found in Section V of the draft ordinance.
IV. ANALYSIS
General Plan: Proposed changes to Zoning Ordinance chapters on inclusionary housing and growth
management do not conflict with the provisions of the General Plan. The General Plan Land Use
Element contains goals and policies relevant to the collection of development impact fees.
Growth Management and Public Facilities goals (A.1 and A.2) require the city to ensure public facilities and services are timely provided, adequate, and properly maintained to preserve the quality of life and serve the projected population. Furthermore, a related policy (C.3) states the
city shall ensure funding for necessary public service and facilities is guaranteed before any
development approvals. With regards to housing, the Land Use Element (Residential Goal A.1)
and Housing Element (Goal 2) establish the provision of housing affordable to all economic segments.
The proposal to defer payment of development impact fees does not remove the obligation or
guarantee to pay such fees, which fund public improvements and affordable housing. Instead, it
only permits the delay in the payment of fees, and only upon the applicant’s request. Based on Planning Division research, the average length of deferral across most types of
construction would be nine and one-half months. This delay is based on the average time
between building permit issuance (when the bulk of fees are collected) and the request for final
inspection. The average time was determined for four construction types (i.e., single-family homes, apartments, commercial and industrial buildings), which were permitted and finally inspected between the years 2000-2011. Based on this average, deferral would not significantly
impair the city’s ability to ensure the timely and adequate provision of public facilities and
services necessary to maintain a desirable quality of life.
Zoning Ordinance:
The proposed amendment is minor and primarily non-substantive in nature. It simply clarifies the
timing of fee payment and in doing so maintains consistency with the purpose and intent of the
Inclusionary Housing and Growth Management chapters of the Zoning Ordinance. Additionally,
it is consistent with other provisions of the Zoning Ordinance not being amended.
Local Coastal Program:
ZCA 12-01 does not require a Local Coastal Program Amendment because it does not affect
regulations regarding the use of buildings, structures, and land. Therefore, the proposal is not considered an amendment to a zoning ordinance for the purposes of Government Code Section
ZCA 12-01 – DEVELOPMENT IMPACT FEE DEFERRAL
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65850 and Public Resources Code Section 30122, which define a zoning ordinance for Local Coastal Program purposes.
V. ENVIRONMENTAL REVIEW
Minor Zoning Ordinance amendments that clarify existing land use standards are exempt from the California Environmental Quality Act pursuant to Municipal Code Section 19.04.070
A.1.c.1. This section exempts from environmental review projects “where it can be seen with
certainty that there is no possibility that the activity in question may have a significant effect on
the environment.” ATTACHMENT:
1. Planning Commission Resolution No. 6935
Community & Economic Development
1635 Faraday Ave. Carlsbad, CA 92008 760-602-2710 760-602-8560 fax
ERRATA SHEET FOR AGENDA ITEM #2
Memorandum
December 5, 2012
To: Planning Commission
From: David de Cordova, Principal Planner
Via Don Neu, City Planner
Re: Errata Sheet for Agenda Item #2 – ZCA 12-01 – Development Impact Fee Deferral
Upon recent suggestion from the City Attorney’s office, Planning staff recommends that the
proposed ordinance attached as Exhibit “X” to Planning Commission Resolution No. 6935 be
modified as shown in this errata. The purpose of these minor changes is to provide greater
clarity as to the timing of certain fee payments. Insertion of the word “only” as shown in this
errata is intended to clarify that payment of certain fees may occur only either: 1) prior to
building permit issuance or 2) prior to final inspection. Once an applicant has opted to defer
payment of fees, the fees may then only be paid at final inspection time (i.e., no “prepayment”
to avoid a fee increase).
The proposed changes to the draft ordinance are indicated in bold underline text.
Exhibit “X”
December 5, 2012
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AMENDING TITLE 13, CHAPTER 13.10; TITLE 15, CHAPTER 15.08; TITLE 18, CHAPTER 18.42; TITLE 20, CHAPTER 20.44; TITLE 21,
CHAPTERS 21.85 AND 21.90, REGARDING FEES AND FEE DEFERRALS 20.44; TITLE 21, CHAPTERS 21.85 AND
21.90, REGARDING FEES AND FEE DEFERRALS
CASE NAME: DEVELOPMENT IMPACT FEE DEFERRAL
CASE NO.: ZCA 12-01
The City Council of the City of Carlsbad ordains as follows:
SECTION I: That Title 13, Chapter 13.10 of the Carlsbad Municipal Code is
hereby amended by the addition of Section 13.10.100 to read as follows:
13.10.100 Fee Deferral
Notwithstanding anything in Chapter 13.10 to the contrary, for the period from ___________, 2013 to ______________, 2014, all Sewer Capacity and Sewer Benefit Area
fees for any residential development that consists of five or more dwelling units and for all new commercial, office, and industrial buildings or building additions shall only be paid prior
to building permit issuance, or, at the request of the applicant, deferred until all work required
for final inspection has been completed and all department approvals required for final inspection have been obtained by the applicant.
If the applicant chooses to defer the payment of fees to prior to the request for final inspection, then the amount of the fees shall be based on the fees in effect at the time of the request for final inspection.
In the event that the city, for any reason, fails to collect any or all fees prior to final
inspection, such fees shall remain the obligation of the developer and/or the property owner.
SECTION II: That Title 15, Chapter 13.08 of the Carlsbad Municipal Code is
hereby amended by the addition of Section 15.08.110 to read as follows:
15.08.110 Fee Deferral
Notwithstanding anything in Chapter 15.08 to the contrary, for the period from
_____________, 2013 to _________________, 2014, all Planned Local Drainage Area fees for any residential development that consists of five or more dwelling units and for all new commercial, office, and industrial buildings or building additions shall only be paid prior to
building permit issuance, or, at the request of the applicant, deferred until all work required for final inspection has been completed and all department approvals required for final inspection have been obtained by the applicant.
If the applicant chooses to defer the payment of fees to prior to the request for final inspection, then the amount of the fees shall be based on the fees in effect at the time of the request for final inspection.
ORDINANCE NO._________
Exhibit “X”
December 5, 2012
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In the event that the city, for any reason, fails to collect any or all fees prior to final
inspection, such fees shall remain the obligation of the developer and/or the property owner. SECTION III: That Title 18, Chapter 18.42, Section 18.42.050 of the Carlsbad
Municipal Code is hereby amended to read as follows:
18.42.050 Fee
(a) A traffic impact fee of two hundred sixty-five dollars for each average daily trip
generated by a residential project and a traffic impact fee of one hundred six dollars for each average daily trip generated by a commercial or industrial project, pursuant to Section
18.42.020(e), shall be paid by the owner or developer prior to issuance of any building permit
or occupancy permit for a project. The traffic impact fee shall be adjusted annually as part of the Capital Improvement Program budget process, by two percent or the annual percentage
change in the Caltrans Construction Cost Index (12-month index), whichever is higher.
(b) In lieu of payment of all or part of the fee the project owner or developer may
offer to construct or fund circulation improvements to the satisfaction of the city council, other
than circulation improvements required by any other law, approval or city action. If such offer is accepted by the city council, any amount expended by the project owner or developer shall
be credited against the fee. If the offer is rejected the fee shall be paid. The offer shall be made at the time of consideration of any discretionary planning or subdivision permit or approval, or if no such permit or approval is required then before building permit application is
filed.
(c) The city council shall give a credit toward the fee imposed by this chapter for
properties within the boundaries of and subject to taxation by community facilities district number one. The amount of such credit shall be determined by the city council and established by resolution.
(d) Notwithstanding 18.42.050(a), for the period from _________, 2013 to
__________, 2014, all Traffic Impact fees for any residential development that consists of five
or more dwelling units and for all new commercial, office, and industrial buildings or building additions shall only be paid prior to building permit issuance, or, at the request of the
applicant, deferred until all work required for final inspection has been completed and all
department approvals required for final inspection have been obtained by the applicant. If the applicant chooses to defer the payment of fees to prior to the request for final inspection, then
the amount of the fees shall be based on the fees in effect at the time of the request for final
inspection.
In the event that the city, for any reason, fails to collect any or all fees prior to final inspection, such fees shall remain the obligation of the developer and/or the property owner.
SECTION IV: That Title 20, Chapter 20.44 of the Carlsbad Municipal Code is
hereby amended by the addition of Section 20.44.140 to read as follows:
20.44.140 Fee Deferral
Notwithstanding anything in Chapter 20.44 to the contrary, for the period from ____________2013 to ____________, 2014, all Park In-lieu fees for any residential
development that consists of five or more dwelling units shall only be paid prior to building
Exhibit “X”
December 5, 2012
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permit issuance, or, at the request of the applicant, deferred until all work required for final
inspection has been completed and all department approvals required for final inspection have been obtained by the applicant.
If the applicant chooses to defer the payment of fees to prior to the request for final inspection, then the amount of the fees shall be based on the fees in effect at the time of
the request for final inspection.
In the event that the city, for any reason, fails to collect any or all fees prior to final
inspection, such fees shall remain the obligation of the developer and/or the property owner.
SECTION V: That Title 21, Chapters 21.85 and 21.90 of the Carlsbad Municipal
Code are hereby amended by the addition of Sections 21.85.195 and 21.90.195 to read as
follows:
21.85.195 Fee Deferral
Notwithstanding anything in Chapter 21.85 to the contrary for the period from ___________, 2013 to ___________, 2014, all Housing In Lieu and Housing Impact fees for
any residential development that consists of five or more dwelling units shall only be paid prior to building permit issuance, or, at the request of the applicant, deferred until all work required for final inspection has been completed and all department approvals required for
final inspection have been obtained by the applicant.
The amount of the fees shall be based on the fees in effect at the time of the
request for the final inspection, not the time of building permit issuance. In the event that the city, for any reason, fails to collect any or all fees prior to final
inspection, such fees shall remain the obligation of the developer and/or the property owner.
21.90.195 Fee Deferral
Notwithstanding anything in Chapter 21.90 and any resolution of the City Council
to the contrary for the period between ___________, 2013 to _____________, 2014, all fees
subject to this Chapter for any residential development that consists of five or more dwelling units and all new commercial, office, and industrial buildings or building additions shall only
be paid prior to building permit issuance, or, at the request of the applicant, deferred until all
work required for final inspection has been completed and all department approvals required for final inspection have been obtained by the applicant.
The amount of the fees shall be based on the fees in effect at the time of the request for the final inspection, not the time of building permit issuance.
In the event that the city, for any reason, fails to collect any or all fees prior to final inspection, such fees shall remain the obligation of the developer and/or the property owner.
EFFECTIVE DATE: This ordinance shall be effective thirty days after its
adoption; and the city clerk shall certify the adoption of this ordinance and cause the full text
of the ordinance or a summary of the ordinance prepared by the City Attorney to be
Exhibit “X”
December 5, 2012
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published at least once in a newspaper of general circulation in the City of Carlsbad within
fifteen days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City
Council on the day of , 2013, and thereafter
PASSED AND ADOPTED at a regular meeting of the City Council of the City
of Carlsbad on the day of , 2013, by the following vote, to wit:
AYES:
NOES:
ABSENT:
APPROVED AS TO FORM AND LEGALITY:
RONALD R. BALL, City Attorney
MATT HALL, Mayor
ATTEST:
LORRAINE M. WOOD, City Clerk