HomeMy WebLinkAbout2003-12-09; City Council; 17402; Accounting/Reporting Requirements Mitigation FeeAB# 17,402
MTG. 12-9-03
DEPT. CA
TITLE: AMENDMENT OF TITLE 21, CHAPTER 21.70 OF THE
REQUIRING THE CITY TO FOLLOW THE ACCOUNTING AND
CARLSBAD MUNICIPAL CODE TO ADD SECTION 21.70.025,
REPORTING REQUIREMENTS OF THE MITIGATION FEE ACT
FOR ANY FEES OR COSTS RECOVERED ASSOCIATED WITH
A DEVELOPMENT AGREEMENT
DEPT. HD.
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION: To introduce Ordinance No. NS-685 amending Title 21, Chapter 21.70 of the Carlsbad Municipal Code by adding section 21.70.025, requiring the City to follow the accounting and reporting requirements of the Mitigation Fee Act for any fees or costs recovered associated with a development agreement.
ITEM EXPLANATION: Development agreements authorized by CMC Title 21, Chapter 21.70 are legislative acts in which the City and a developer agree that a proposed development will be governed by the rules, regulations, and official policies governing permitted uses, density, design, improvements and construction in place at the time the agreement is executed, thereby protecting the developer from any newly enacted ordinances (though not from changes to provisions of state law such as the California Environmental Quality Act) that may impede the development. In return, the developer may be required to pay specified monies as fees or provide infrastructure or other improvements to the City above and beyond what would ordinarily be imposed in connection with a development project.
Current state law also authorizes a city or county to receive from applicants the direct costs associated with adopting an ordinance or resolution to establish procedures and requirements for the consideration of development agreements. Current law does not require any specific procedures for the City to follow in dealing with monies paid and collected or costs recovered in connection with development agreements.
The California Building Association sponsored AB 1347, since development agreements are being entered into more and more frequently and the amounts of money changing hands as a result is growing proportionately. According to Assembly reports when this legislation was being processed, this potentially created a fertile ground for mistakes or malfeasance in the absence of any accounting requirements for this money. Assembly Bill 1347 amends Government Code section 65865 to require cities and counties to follow the accounting and reporting requirements of the Mitigation Fee Act, as set forth in Government Code section 66006 et. seq. for any fees they receive or costs they recover from development agreements.
Effective January 1, 2004, this legislation requires local officials to deposit developer fees in a separate capital facilities account or fund and spend the money only for the purpose for which it was collected. In addition local officials must provide for an annual public report accounting for these funds. Pursuant to Government Code section 66023(a) anyone can request an audit.
FISCAL IMPACT: Additional costs to the City associated with setting up and administering a separate account for development fees and costs reimbursements and creation of the seven-part public report and any auditing would be cost associated with the consideration of the development agreement and therefore, should be reimbursed by the applicant creating no net fiscal impact.
EXHIBIT:
Ordinance No. NS-685
DEPARTMENT CONTACT: Jane Mobaldi, Assistant City Attorney 434-2891
ORDINANCE NO. NS-685
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AMENDING TITLE 21,
CHAPTER 21.70 OF THE CARLSBAD MUNICIPAL CODE
BY ADDING SECTION 21 -70.025, REQUIRING THE CITY
TO FOLLOW THE ACCOUNTING AND REPORTING
REQUIREMENTS OF THE MITIGATION FEE ACT FOR
ANY FEES OR COSTS RECOVERED ASSOCIATED
The City Council of the City of Carlsbad, California, does ordain as
follows:
SECTION 1: That Title 21, Chapter 21.70 of the Carlsbad Municipal
Code is amended to add section 21.70.025 to read as follows:
u-.-
(a) For any development agreement entered into on or after January 1, 2004, the City shall comply with Government Code section 66006 et. seq., the
Mitigation Fee Act, with respect to any fee it receives or costs it recovers pursuant
to this chapter.
(b) The Mitigation Fee Act requires the City to deposit developer fees or
costs reimbursements collected associated with ‘the development agreement into a
separate capital facilities account or fund and spend the money only for the
purpose for which it was collected. The City must provide an annual public report
accounting for these funds.
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 it to be 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 9th day of December , 2003, and
thereafter
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PASSED AND ADOPTED at a regular meeting of the City Council of
, 2003, by the following the City of Carlsbad on the day of
vote, to wit:
AYES:
NOES:
ABSENT:
APPROVED AS TO FORM AND LEGALITY
RONALD R. BALL, City Attorney
CLAUDE A. LEWIS, Mayor
ATTEST:
LORRAINE M. WOOD, City Clerk
(SEAL)
age 2 of 2 of Ordinance No. NS-685
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