HomeMy WebLinkAbout2015-09-22; City Council; 22091; Amend Chapter 3.40 Reimbursement Fee of Construction Eligible ImprovementsCITY OF CARLSBAD - AGENDA BILL 12
AB# 22,091 AMEND CHAPTER 3.40 OF THE CARLSBAD
MUNICIPAL CODE SETTING FORTH
PROCEDURES FOR THE ESTABUSHMENT OF A
REIMBURSEMENT FEE FOR FUNDING THE
REIMBURSEMENT OF CERTAIN COSTS OF
CONSTRUCTION EUGIBLE IMPROVEMENTS
DEPT. DIRECTOR //
MTG, 09/22/15
AMEND CHAPTER 3.40 OF THE CARLSBAD
MUNICIPAL CODE SETTING FORTH
PROCEDURES FOR THE ESTABUSHMENT OF A
REIMBURSEMENT FEE FOR FUNDING THE
REIMBURSEMENT OF CERTAIN COSTS OF
CONSTRUCTION EUGIBLE IMPROVEMENTS
CITY ATTY,
DEPT, ASD
AMEND CHAPTER 3.40 OF THE CARLSBAD
MUNICIPAL CODE SETTING FORTH
PROCEDURES FOR THE ESTABUSHMENT OF A
REIMBURSEMENT FEE FOR FUNDING THE
REIMBURSEMENT OF CERTAIN COSTS OF
CONSTRUCTION EUGIBLE IMPROVEMENTS
CITY MGR, 1^
•
RECOMMENDED AaiON:
Introduce Ordinance No. CS-2S6 of the City Council of the City of Carlsbad, California, amending
Chapter 3.40 of the Carlsbad Municipal Code setting forth procedures for the establishment of a
reimbursement fee for funding the reimbursement of certain costs of construction of eligible
improvements.
ITEM EXPLANATION:
On July 28, 2015, via Agenda Bill 22,053, Council introduced Ordinance No. CS-281. On August 25, 2015, via
Agenda Bill 22,071, Council adopted Ordinance No. CS-281 adding Chapter 3.40 to the Carisbad Municipal
Code, setting forth procedures for the establishment of a reimbursement fee for funding the
reimbursement of certain costs of construction of eligible improvements. However, an ordinance version
containing incorrect language was inadvertently used for introduction and adoption. The attached
Ordinance will make minor language amendments to correct and align the ordinance to the information
staff distributed to property owners on July 17, 2015 and.presented to Council on July 28, 2015. Specifically:
• several grammatical changes are being made to Section 3.40.090,
• the term is being clarified in Section 3.40.110 to reference the 10 year term extension in Section
3.40.140,
• language is being removed from Section 3.40.140 that was redundant to language in Section
3.40.110, and
• Section 3.40.161 is being revised to clarify that this ordinance cannot be used in conjunction with
an Assessment District or Community Facilities Districi.
FISCAL IMPACT:
None.
DEPARTMENT CONTACT: Aaron Beanan 760-602-2414 Aaron.Beanan(5)carlsbadca.eov
f OR CLERK USE.
COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER - SEE MINUTES •
AMENDED • REPORT RECEIVED •
\
PAGE 2
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the
meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or
a reasonably foreseeable indirect physical change in the environment, and therefore does not require
environmental review.
EXHIBITS:
1. Ordinance No. CS-286 of the City Council of the City of Carisbad, California, amending
Chapter 3.40 ofthe Carlsbad Municipal Code setting forth procedures for the establishment of a
reimbursement fee for funding the reimbursement of certain costs of construction of eligible
improvements.
2. Redline Version of Carlsbad Municipal Code Chapter 3.40
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EXHIBIT 1
ORDINANCE NO. CS-286
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING CHAPTER 3.40,
SECTIONS 3.40.090, 3.40.110, 3.40.140, AND 3.40.161 OF THE
CARLSBAD MUNICIPAL CODE RELATED TO PROCEDURES FOR
THE ESTABUSHMENT OF A REIMBURSEMENT FEE FOR
FUNDING THE REIMBURSEMENT OF CERTAIN COSTS OF THE
CONSTRUCTION OF EUGIBLE IMPROVEMENTS
WHEREAS, the Carisbad City Council concurs that it is necessary to amend Chapter
3.40, Sections 3.40.090, 3.40.110, 3.40.140, and 3.40.161 of the Carisbad Municipal Code
related to the procedures for the establishment of a reimbursement fee for funding the
reimbursement of certain costs of the construction of eligible improvements.
NOW, THEREFORE, the City Council ofthe City of Carisbad ordains as follows:
SECTION 1: That Chapter 3.40 ofthe Carisbad Municipal Code is amended to read as
follows:
Chapter 3.40 CARLSBAD REIMBURSEMENT FEE
3.40.010 Short Title
3.40,020 Purpose
3.40,030 Definitions
3.40.040 Request for Establishment of a Reimbursement Fee
3.40.050 Deposits
3.40,060 Improvements Eligible for Reimbursement
3,40,070 Eligible Costs
3.40.080 Construction of Eligible Improvements
3.40.090 Reimbursement Fee Study
3.40,100 Notice of Public Hearing
3,40,110 Public Hearing and Establishment of Reimbursement Fee
3.40.120 Adjustment ofthe Reimbursement Fee to Reflect Actual Costs
3.40.130 Adjustment of Reimbursement Fee for Specific Projects
3,40,140 Imposition ofa Reimbursement Fee
3.40.150 Payment ofthe Reimbursement Fee
3.40.160 Establishment of Funds and Use of Reimbursement Fees
3.40.161 Use of Chapter 3,40 in Combination with Use of Bond Financing Prohibited
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EXHIBIT 1
SECTION 2: That Section 3.40.090 ofthe Carisbad Municipal Code is amended to read
as follows:
3,40,090 Reimbursement Fee Study. The City Engineer will, following receipt of the
documents required to be provided to the City Engineer pursuant to Section 3.40.040
hereto, in the exercise of his or her independent professional judgment, prepare or cause
to be prepared a Reimbursement Fee Study for the requested Reimbursement Fee that will
include the following:
A. A legal description or list ofthe Assessor's Parcel Numbers of each parcel
within the applicable LFMZ, including the properties owned or being developed by the
Requesting Party, upon which the City Engineer determines that a portion ofthe eligible
costs of Eligible Improvements and Eligible Incidental Costs should be fairly allocated, the
name ofthe owner thereof, street address thereof each such parcel, if any, and the acreage
thereof;
B. A detailed plat showing the precise locations of all of the Eligible
Improvements for which the Requesting Party has requested reimbursement shown
in relation to the parcels identified pursuant to paragraph A above;
C. A list of each of the Eligible Improvements and the estimated cost of the
construction ofthe Eligible Improvements and each ofthe estimated Eligible Incidental Costs,
as determined by the City Engineer to be reasonable and customary for such Eligible
Improvements and Eligible Incidental Costs;
D. A determination whether any portion of the cost of the construction of any
Eligible Improvements and related Eligible Incidental Costs may be subject to reimbursement
from any existing City impact fee program. If and to the extent that any portion of such costs
is subject to reimbursement from such impact fee program, such amount shall be deducted
from estimated cost ofthe construction of such Eligible Improvements and the related Eligible
Incidental Costs.
E. A report identifying the burden which the development of each parcel,
including the parcels owned or being developed by the Requesting Party, identified
pursuant to paragraph A above in accordance with its zoning and general plan designation
and other existing land use entitlements, if any, will impose upon the Eligible
Improvements and the extent to which the development of each such parcel will contribute
to the need for or burden upon such Eligible Improvements;
F. An explanation of how there is a reasonable relationship between the
Reimbursement Fee's use and the types of Projects on which the Reimbursement Fee may
be imposed;
G. A detailed description ofthe method of Reimbursement Fee allocation;
H. A reimbursement schedule to include a list of all LFMZ Properties
determined by the City Engineer to be subject to the proposed Reimbursement Fee with
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EXHIBIT 1
current Assessor's parcel number, owner's name, property's street address, and the
acreage of such parcels and the proposed Reimbursement Fee applicable to each such
LFMZ Property.
Upon completion of a Reimbursement Fee Study the City Engineer shall mail a copy
of such study to the Requesting Party and the owner of each property determined by the
City Engineer to be subject to the proposed Reimbursement Fee as set forth in such
Reimbursement Fee Study, together with the notice of the date, time and place of a
property owner informational meeting at which the City Engineer or his or her designee
shall be available to answer questions regarding the Reimbursement Fee Study. Such
notice shall be given at no less than ten days before the date of such meeting. Such meeting
shall be scheduled to occur not less than 20 days prior to the public hearing required to be
held pursuant to Section 3.40.110 hereto.
SECTION 3: That Section 3.40.110 ofthe Carlsbad Municipal Code is amended to read
as follows:
3.40,110 Public Hearing and Establishment of Reimbursement Fee. The City Council shall
hold a public hearing to determine the types of Projects that shall be subject to the
Reimbursement Fee and the Reimbursement Fee that shall be imposed on each Project.
This Reimbursement Fee shall only be established ifthe City Council can make the following
findings:
A. The purpose and use ofthe Reimbursement Fee.
B. Determine how there is a reasonable relationship between the use of the
Reimbursement Fee and the type of Project on which the Reimbursement Fee is imposed.
C. Determine how there is a reasonable relationship between the need for the
Eligible Improvement and the type of Project on which the Reimbursement Fee is imposed.
At the conclusion of the public hearing, the City Council shall adopt a resolution
approving, conditionally approving or denying the establishment of the Reimbursement
Fee. If the City Council approves the establishment of the Reimbursement Fee, the
resolution shall attach as an exhibit thereto a copy of the reimbursement plan as adopted
by the City Council and shall set forth the method of Reimbursement Fee allocation as
approved by the City Council.
If the establishment of a Reimbursement Fee is approved, such resolution shall
establish the term that such Reimbursement Fee shall be in effect and may be collected
from LFMZ Properties subject to such fee. The term of a Reimbursement Fee shall be
consistent with the term, if any, for a reimbursement agreement specified in the LFMP
related to the LFMZ subject to the Reimbursement Fee, the terms for reimbursement
agreements or fees specified or contemplated in legislation or policies pertaining to such
reimbursement agreements or fees, including but not limited to the ordinances and policies
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EXHIBIT 1
of the City, or the terms for reimbursement agreements previously established by the City,
in such order of priority; provided, however, except as provided in Section 3.40.140, no
Reimbursement Fee shall have a term longer than 20 years from the first day of the
calendar year following the date of adoption of the resolution of the City Council
establishing such Reimbursement Fee.
Ifthe Reimbursement Fee is to be subject to escalation, the resolution shall state
the rate of escalation applicable to the Reimbursement Fee.
SECTION 4: That Section 3.40.140 ofthe Carisbad Municipal Code is amended to read
as follows:
3.40.140 Imposition of a Reimbursement Fee, Notwithstanding any provisions of the
Carlsbad Municipal Code, no permit shall be issued for any Project subject to a
Reimbursement Fee established pursuant to this Chapter except upon the condition that
the Reimbursement Fee applicable to such Project shall be paid in accordance with the
provisions ofthis Chapter. The obligation for the payment of a Reimbursement Fee for any
Project shall attach at the time the initial grading permit for such Project is issued. Such
obligation shall continue to apply to such Project for a period not to exceed ten (10) years
beyond the term of such Reimbursement Fee established pursuant to Section 3.40.110.
SECTION 5: That Section 3.40.161 ofthe Carlsbad Municipal Code is amended to read
as follows:
3.40.161 Use of Chapter 3,40 in Combination with Use of Bond Financing Prohibited,
Notwithstanding anything to the contraty in this Chapter, this Chapter may not be used to
impose a Reimbursement Fee on certain LFMZ Properties to provide for the reimbursement of
the costs of construction of Eligible Improvements allocable to such LFMZ Properties in
combination with the levy of special taxes pursuant to the Mello-Roos Community Facilities Act
of 1982, as amended, or special assessments pursuant to the Municipal Improvement Act of
1913 against other LFMZ Properties to secure the payment of special tax bonds or limited
obligation improvement bonds, as applicable, issued to fund the costs of construction of such
Eligible Improvements allocable to such other LFMZ Properties.
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
ofthe ordinance or a summary ofthe ordinance prepared by the City Attorney to be published
at least once in a newspaper of general circulation in the City of Carisbad within fifteen days
after its adoption.
EXHIBIT 1
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PASSED AND ADOPTED at a regular meeting of the City Council ofthe City of
Carlsbad on the_
AYES:
NOES:
ABSENT:
_day of _ _, 2015, by the following vote, to wit:
APPROVED AS TO FORM AND LEGALITY:
CELIA A. BREWER, City Attorney
MATT HALL, Mayor
ATTEST:
BARBARA ENGLESON, City Clerk
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EXHIBIT 2
ORDINANCE NO,
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CAUFORNIA, AMENDING CHAPTER 3.40,
SECTIONS 3.40.090, 3.40.110, 3.40.140, AND 3.40.161 OF THE
CARLSBAD MUNICIPAL CODE RELATED TO PROCEDURES FOR
THE ESTABLISHMENT OF A REIMBURSEMENT FEE FOR
FUNDING THE REIMBURSEMENT OF CERTAIN COSTS OF THE
CONSTRUCTION OF EUGIBLE IMPROVEMENTS
WHEREAS, the Carisbad City Council concurs that it is necessary to amend Chapter
3.40, Sections 3.40.090, 3.40.110, 3.40.140, AND 3.40.161 of the Carisbad Municipal Code
related to the procedures for the establishment of a reimbursement fee for funding the
reimbursement of certain costs ofthe construction of eligible improvements.
NOW, THEREFORE, the City Council ofthe City of Carlsbad ordains as follows:
SECTION 1: That Chapter 3.40 ofthe Carisbad Municipal Code is amended to read as
follows:
Chapter 3,40 CARLSBAD REIMBURSEMENT FEE
3,40,010 Short Title
3,40.020 Purpose
3.40.030 Definitions
3.40.040 Request for Establishment of a Reimbursement Fee
3.40.050 Deposits
3,40.060 Improvements Eligible for Reimbursement
3,40,070 Eligible Costs
3,40.080 Construction of Eligible Improvements
3.40.090 Reimbursement Fee Study
3,40.100 Notice of Public Hearing
3,40.110 Public Heanng and Establishment of Reimbursement Fee
3.40,120 Adjustment ofthe Reimbursement Fee to Reflect Actual Costs
3,40,130 Adjustment of Reimbursement Fee for Specific Projects
3,40,140 Imposition of a Reimbursement Fee
3.40.150 Payment ofthe Reimbursement Fee
3.40.160 Establishment of Funds and Use of Reimbursement Fees
3.40.161 Improvomonts Inoligiblo for RoimbursementUse of Chapter 3,40 in Combination
with Use of Bond Financing Prohibited
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EXHIBIT 2
SECTION 2: That Section 3.40.090 ofthe Carisbad Municipal Code is amended to read
as follows:
3.40.090 Reimbursement Fee Study. The City Engineer will, following receipt of the
documents required to be provided to the City Engineer pursuant to Section 3.40.040
hereto, in the exercise gf his or her independent professional judgment, prepare or cause
to be prepared a Reimbursement Fee Study for the requested Reimbursement Fee that will
include the following:
A. A legal description or list of the Assessor's Parcel Numbers of each parcel
within the applicable LFMZ, including the properties owned or being developed by the
Requesting Party, upon which the City Engineer determines that a portion ofthe eligible
costs of Eligible Improvements and Eligible Incidental Costs should be fairly allocated, the
name ofthe owner thereof, street address thereof each such parcel, if any, and the acreage
thereof;
B. A detailed plat showing the precise locations of all of the Eligible
Improvements for which the Requesting Party has requested reimbursement shown
in relation to the parcels identified pursuant to paragraph A above;
C. A list of each of the Eligible Improvements and the estimated cost of the
construction ofthe Eligible Improvements and each ofthe estimated Eligible Incidental Costs,
as determined by the City Engineer to be reasonable and customary for such Eligible
Improvements and Eligible Incidental Costs;
D. A determination whether the-any portion ofthe cost ofthe construction of any
Eligible Improvements and related Eligible Incidental Costs may be subject to reimbursement
from any existing City impact fee program. If and to the extent that any portion of such costs
is subject to reimbursement from such impact fee program, such amount shall be deducted
from estimated cost ofthe construction of such Eligible Improvements and the related Eligible
Incidental Costs.
E. A report identifying the burden which the development of each parcel,
including the parcels owned or being developed by the Requesting Party, identified
pursuant to paragraph A above in accordance with its zoning and general plan designation
and other existing land use entitlements, if any, will impose upon the Eligible
Improvements and the extent to which the development of each such parcel will contribute
to the need for or burden upon such Eligible Improvements;
F. An explanation of how there is a reasonable relationship between the
Reimbursement Fee's use and the types of Projects on which the Reimbursement Fee may
be imposed;
G. A detailed description ofthe method of Reimbursement Fee allocation;
H. A reimbursement schedule to include a list of all LFMZ Properties
determined by the City Engineer to be subject to the proposed Reimbursement Fee with
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EXHIBIT 2
current Assessor's parcel number, owner's name, property's street address, and the
acreage of such parcels and the proposed Reimbursement Fee applicable to each such
LFMZ Property.
Upon completion of a Reimbursement Fee Study the City Engineer shall mail a copy
of such study to the Requesting Party and the owner of each property determined by the
City Engineer to be subject to the proposed Reimbursement Fee as set forth in such
Reimbursement Fee Study, together with the notice of the date, time and place of a
property owner informational meeting at which the City Engineer or his or her designee
shall be available to answer questions regarding the Reimbursement Fee Study. Such
notice shall be given at no less than ten days before the date of such meeting. Such meeting
shall be scheduled to occur not less than 20 days prior to the public hearing required to be
held pursuant to Section 3.40.110 hereto.
SECTION 3: That Section 3.40.110 ofthe Carisbad Municipal Code is amended to read
as follows:
3.40.110 Public Hearing and Establishment of Reimbursement Fee. The City Council shall
hold a public hearing to determine the types of Projects that shall be subject to the
Reimbursement Fee and the Reimbursement Fee that shall be imposed on each Project.
This Reimbursement Fee shall only be established ifthe City Council can make the following
findings:
A. The purpose and use ofthe Reimbursement Fee.
B. Determine how there is a reasonable relationship between the use of the
Reimbursement Fee and the type of Project on which the Reimbursement Fee is imposed.
C. Determine how there is a reasonable relationship between the need for the
Eligible Improvement and the type of Project on which the Reimbursement Fee is imposed.
At the conclusion ofthe public hearing, the City Council shall adopt a resolution
approving, conditionally approving or denying the establishment of the Reimbursement
Fee. If the City Council approves the establishment of the Reimbursement Fee, the
resolution shall attach as an exhibit thereto a copy of the reinribursement plan as adopted
by the City Council and shall set forth the method of Reimbursement Fee allocation as
approved by the City Council.
If the establishment of a Reimbursement Fee is approved, such resolution shall
establish the term that such Reimbursement Fee shall be in effect and may be collected
from LFMZ Properties subject to such fee. The term of a Reimbursement Fee shall be
consistent with the term, if any, for a reimbursement agreement specified in the LFMP
related to the LFMZ subject to the Reimbursement Fee, the terms for reimbursement
agreements or fees specified or contemplated in legislation or policies pertaining to such
reimbursement agreements or fees, including but not limited to the ordinances and policies
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EXHIBIT 2
of the City, or the terms for reimbursement agreements previously established by the City,
in such order of priority; provided, however, except as provided in Section 3.40.140, no
Reimbursement Fee shall have a term longer than 20 years from the first day of the
calendar year following the date of adoption of the resolution of the City Council
establishing such Reimbursement Fee.
Ifthe Reimbursement Fee is to be subject to escalation, the resolution shall state
the rate of escalation applicable to the Reimbursement Fee.
SECTION 4: That Section 3.40.140 ofthe Carisbad Municipal Code is amended to read
as follows:
3.40.140 Imposition of a Reimbursement Fee. Notwithstanding any provisions of the
Carlsbad Municipal Code, no permit shall be issued for any Project subject to a
Reimbursement Fee established pursuant to this Chapter except upon the condition that
the Reimbursement Fee applicable to such Project shall be paid in accordance with the
provisions ofthis Chapter. The obligation forthe payment ofa Reimbursement Fee for any
Project shall attach at the time the initial grading permit for such Project is issued. Such
obligation shall continue to apply to such Project for a period not to exceed ten (10) years
from the first day of the calendar yoar following the date of adoption of tho resolution
establishing such Rcimbursomont Foo pursuant to Section 3.40.110 notwithstonding the
fact that such period may extend beyond the term of such Reimbursement Fee established
pursuant to Section 3.40.110.
SECTION 5: That Section 3.40.161 ofthe Carisbad Municipal Code is amended to read
as follows:
3.40.161 Improvements IneliRible for ReimbursemefttUse of Chapter 3.40 in Combination
with Use of Bond Financing Prohibited. Notwithstanding anything to the contrary in this
Chapter, this Chapter may not be used to impose a Reimbursement Fee on certain LFMZ
Properties to provide for the reimbursement of the costs of construction of Eligible
Improvements financed from the procoodsallocable to such LFMZ Properties in combination
with the levy of special tax bonds issuedtaxes pursuant to the Mello-Roos Community Facilities
Act of 1982, as amended, or special assessments pursuant to the Municipal Improvement Act
of 1913 against other LFMZ Properties to secure the payment of special tax bonds or limited
obligation improvement bonds issued pursuant to the Improvement Bond Act of 1915, as
amended, shall not bo eligible for reimbursement pursuant to this Chapter., as applicable-
issued to fund the costs of construction of such Eligible Improvements allocable to such other
LFMZ Properties,
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
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EXHIBIT 2
ofthe ordinance or a summary ofthe ordinance prepared bythe City Attorney to be published
at least once in a newspaper of general circulation in the City of Carisbad within fifteen days
after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the Carisbad City
Council on the _day of 2015, and thereafter,
PASSED AND ADOPTED at a regular meeting ofthe City Council ofthe City of
Carlsbad on the day of.
AYES:
NOES:
ABSENT:
_, 2015, by the following vote, to wit:
APPROVED AS TO FORM AND LEGALITY:
CEUA A. BREWER, City Attorney
MATT HALL, Mayor
ATTEST:
BARBARA ENGLESON, City Clerk