HomeMy WebLinkAboutZCA 12-01A; Development Impact Fee Deferral Program; Zone Code Amendment (ZCA)
The City of Carlsbad Planning Division
A REPORT TO THE PLANNING COMMISSION
Item No.
Application complete date: N/A
P.C. AGENDA OF: March 18, 2015 Project Planner: Corey Funk
Project Engineer: N/A
SUBJECT: ZCA 12-01(A) – DEVELOPMENT IMPACT FEE DEFERRAL PROGRAM AMENDMENT – A
request for a recommendation of approval to amend Zoning Ordinance chapters 21.85
(Inclusionary Housing) and 21.90 (Growth Management) to make the deferral of
development impact fees a permanent program.
I. RECOMMENDATION
That the Planning Commission ADOPT Planning Commission Resolution No. 7089 RECOMMENDING
APPROVAL of ZCA 12-01(A) to amend the Zoning Ordinance by amending Sections 21.85.195 and
21.90.195 to make the deferral of development impact fees a permanent program, based on the findings
contained therein.
II. PROJECT DESCRIPTION AND BACKGROUND
Project Description:
The city’s Development Impact Fee Deferral program contains a provision that limits the program to a two
year time frame, which sunsets on March 1, 2015. The primary purpose of the proposed Zone Code
Amendment (ZCA 12-01(A)) is to eliminate the two year time frame limitation and make the program
permanent. No other changes are proposed for the program.
Development Impact Fee Deferral Program Background:
At its September 11, 2012, meeting, the City Council received a report on the deferral of development
impact fees and directed the city attorney to return with implementing documents. On December 5,
2012, the Planning Commission recommended approval of Zone Code Amendments necessary to help
implement this direction (Planning Commission Resolution No. 6935). At its January 8, 2013 meeting, the
City Council adopted Ordinance CS-200, which amended Titles 13, 15, 18, 20 and 21 of the Carlsbad
Municipal Code to establish the Development Impact Fee Deferral program (City Council Agenda Bill
21,098). The purpose of the program is to defer certain development impact fees from the point of
building permit issuance until the point of final inspection, thereby encouraging economic activity.
Development Impact Fee Deferral Program Status:
The following overview of the city’s fee deferral program is provided primarily for the Planning
Commission’s information.
Developers may request a fee deferral under the following criteria:
Fee deferral only applies to the following fees:
o Park In Lieu
o Local Facilities Management Plan
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ZCA 12-01(A) – DEVELOPMENT IMPACT FEE DEFERRAL PROGRAM AMENDMENT
March 18, 2015
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o Traffic Impact
o Master Drainage
o Sewer Capacity and Benefit Area
o Housing Impact and In Lieu
For residential projects, fee deferral only applies to projects of five or more dwelling units.
For non-residential development, fee deferral only applies to new commercial, office, or industrial
buildings or building additions; tenant improvements are not subject to fee deferral.
Deferred fees are 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 program sunsets on March 1, 2015.
In the time since the program was established, out of 336 qualifying building permits (289 residential and
47 commercial/industrial), fees were deferred on 28 permits (13 residential and 15
commercial/industrial). On a percentage basis, of total qualifying permits, approximately 5% of residential
and 32% of commercial/industrial permits utilized the program. This resulted in $2,250,720 in fees
deferred for an average of 158 days. The program is proposed to become permanent because it offers
flexibility in how fees are paid and does not negatively impact staff’s administration of the fee collection
process.
In order to make the program permanent, amendments are required to other 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.
III. ANALYSIS
General Plan:
The proposed changes to Zoning Ordinance chapters on inclusionary housing and growth management to
make the deferral of development impact fees a permanent program 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.
ZCA 12-01(A) does not remove the obligation or guarantee to pay such fees, which fund public
improvements and affordable housing. Instead, it only permits the continuation of an existing program
that allows the delay in the payment of fees upon an applicant’s request.
Based on implementation of the Development Impact Fee Deferral program since January 2013, 5% of
residential and 32% of commercial/industrial permit fees were deferred; the average length of deferral
has been 158 days (approximately 5 months). Since the city maintains adequate reserves to fund public
facilities and services, the fee deferral has not significantly impaired the city’s ability to ensure the timely
and adequate provision of public facilities and services necessary to maintain a desirable quality of life.
ZCA 12-01(A) – DEVELOPMENT IMPACT FEE DEFERRAL PROGRAM AMENDMENT
March 18, 2015
Page 3
Zoning Ordinance:
The proposed amendment is minor and primarily non-substantive in nature. It simply makes an existing
two-year fee deferral program permanent. Additionally, it is consistent with other provisions of the
Zoning Ordinance not being amended.
Local Coastal Program:
The proposed Zoning Ordinance Amendment (ZCA 12-01(A)) 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 65850 and Public Resources Code Section 30122, which define a zoning
ordinance for local coastal program purposes.
IV. ENVIRONMENTAL REVIEW
Minor Municipal Code amendments that refine existing fee requirements 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.”
ATTACHMENTS:
1. Planning Commission Resolution No. 7089, including Exhibit X (draft City Council Ordinance)
2. Underline – strikeout exhibit
Attachment 2
Page 1
ZCA 12-01(A)/ MCA 15-01 – Development Impact Fee Deferral Program Amendment
Underline-strikeout exhibit
13.10.100 - Fee deferral.
Notwithstanding anything in Chapter 13.10 to the contrary, for the period March 1, 2013 to March 1,
2015, 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.
(Ord. No. CS-200, § I, 1-29-2013)
15.08.110 - Fee deferral.
Notwithstanding anything in Chapter 15.08 to the contrary, for the period March 1, 2013 to March 1,
2015, 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.
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.
(Ord. No. CS-200, § II, 1-29-2013)
18.42.050(d) - Fee.
(d) Notwithstanding 18.42.050(a), for the period March 1, 2013 to March 1, 2015, 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.
Attachment 2
Page 2
(Ord. NS-890 §§ 1, 2, 2008; Ord. NS-885 § 1, 2008; Ord. NS-177 § 4, 1991; Ord. NS-158 § 2, 1991:
Ord. 8107 § 1 (part), 1986)
(Ord. No. CS-028, § 1, 5-12-2009; Ord. No. CS-200, § III, 1-29-2013)
20.44.140 - Fee deferral.
Notwithstanding anything in Chapter 20.44 to the contrary, for the period from March 1, 2013 to March
1, 2015, all park in-lieu 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.
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.
(Ord. No. CS-200, § IV, 1-29-2013)
21.85.195 - Fee deferral.
Notwithstanding anything in Chapter 21.85 to the contrary for the period from March 1, 2013 to March
1, 2015, 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.
(Ord. No. CS-200, § V, 1-29-2013)
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 March 1, 2013 to March 1, 2015, 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.
(Ord. No. CS-200, § V, 1-29-2013)