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HomeMy WebLinkAboutAGENDA REPORT 2024 0605 CCSA REG ITEM 08DCITY OF MOORPARK, CALIFORNIA City Council Meeting of June 5, 2024 ACTION APPROVED STAFF RECOMMENDATION, INCLUDING ADOPTION OF RESOLUTION NO. 2024- 4246. (ROLL CALL VOTE: UNANIMOUS) BY A. Hurtado. D. Consider Adopting a Resolution Granting a Request to Waive the Collection of Development Impact Fees in the Amount of $155,473.11 for Applications for Residential Additions and Accessory Dwelling Units that were Submitted to the City prior to October 6, 2023, when New Development Impact Fees took Effect and Making a Determination of Exemption from the California Environmental Quality Act (CEQA). Staff Recommendation: 1) Open the public hearing, accept public testimony, and close the public hearing; and 2) Approve Resolution No. 2024-4246 to waive the collection of Development Impact Fees in the amount of $155,473.11 for applications for residential additions and accessory dwelling units that were submitted to the City prior to October 6, 2023, when new development impact fees took effect, which had not been issued a building permit, a Certificate of Occupancy, or a final inspection by October 5, 2023. (Staff: Shanna Farley, Principal Planner) (ROLL CALL VOTE REQUIRED) Item: 8.D. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Doug Spondello AICP, Community Development Director BY: Shanna Farley, Principal Planner DATE: 06/05/2024 Regular Meeting SUBJECT: Consider Adopting a Resolution Granting a Request to Waive the Collection of Development Impact Fees in the Amount of $155,473.11 for Applications for Residential Additions and Accessory Dwelling Units that were Submitted to the City prior to October 6, 2023, when New Development Impact Fees took Effect and Making a Determination of Exemption from the California Environmental Quality Act (CEQA) BACKGROUND On July 19, 2023, the Development Impact Fee Nexus Study 1 (Nexus Study) was approved by the City Council by Resolution No. 2023-4196, which also established the Schedule of Fees and Service Charges2 (Fee Schedule). On September 6, 2023, the City Council approved Ordinance No. 517 which updated and amended the Development Impact Fee (DIF) Program for the imposition of impact fees and amended Chapter 3.363 of the Moorpark Municipal Code to implement the DIFs. Pursuant to the terms of Ordinance No. 517, the new and increased DIFs took effect on October 6, 2023. Prior to that effective date, several applications for ministerial building permits for residential additions (additions) and accessory dwelling units (ADUs) had been filed but not yet approved and issued. This agenda item requests the approval of a waiver of the 1 www.moorparkca.gov/DocumentCenter/View/16040 2 www.moorparkca.gov/DocumentCenter/View/11514 3 https://ecode360.com/44073035 Item: 8.D. 135 Honorable City Council 06/05/2024 Regular Meeting Page 2 collection of the DIFs for those residential addition and ADU applications for which a building permit had been applied for but not yet issued as of October 6, 2023. The Nexus Study for the City’s new and increased DIF was prepared by Harris and Associates, Inc. commencing in fiscal year 2021/22. The Nexus Study addressed the application of DIFs that are one-time fee applied to new development and re- development projects to fund new development’s impacts on City infrastructure. DIFs may be adjusted annually to address inflation. Prior to adoption of the City’s current Nexus Study, DIFs for residential projects were calculated on a per unit basis. Therefore, residential projects that generated additional square footage as part of an existing residential unit would not have been assessed DIFs. With the adoption of Ordinance No. 517, DIFs are now applicable on residential projects based on new additional square footage, whether a new unit is generated or not. DIFs currently applicable to residential projects include: • Parks Facilities and Recreation • Library Facility • City Hall • Police Facilities • Citywide Transportation • Tree and Landscape Fee DISCUSSION Prior to the effective date of the updated DIFs, the City’s Community Development Department had seven pending building permit applications in process for additions or ADUs that had not been issued permits by the time of the fee update and eight issued building permits for additions or ADUs that have not been completed and issued a Certificate of Occupancy or a final inspection (see Table 1) by the time of the fee update. Since that time, two of the building permits have received a final inspection. One of the issued building permits has also since paid the new DIFs (BLR2023-1515), while the remaining building permits have not yet paid the DIFs. Following the assessment of the new DIFs on the permits shown in Table 1, which were submitted prior to the new DIFs becoming effective, at least two of the applicants contacted staff with concerns associated with the new DIFs. The applicant’s posed concerns with assessment of fees that were adopted after they had prepared plans and made applications to the City. Both were concerned with the fees, totaling several thousands of dollars, which they were not originally quoted or prepared for financially. 136 Honorable City Council 06/05/2024 Regular Meeting Page 3 Table 1 Prior to the adoption of the current Fee Schedule, the Community Development Department had not assessed DIFS for additions nor ADUs. The prior DIFs were only applicable to new residential units and new square footage for commercial and industrial uses. In addition, pursuant to Government Code § 65852.2(f)(3)(A), jurisdictions cannot charge DIFs for ADUs less than 750 square feet and could not charge DIFs that were not proportional to the square footage of the primary dwelling unit. As such, the Nexus Study outlined new DIFs that are set by the actual square footage of an addition, rather than as a whole unit, thereby making the DIFs applied to ADUs proportional to DIFs applied to single family residences. The new DIFs are therefore consistent with applicable state laws. Ordinance 517 implementing the new DIF program did not include language to vest projects that had submitted applications prior to October 6, 2023, from having to pay the new DIFs. This was considered but rejected in order to ensure that the City ensured full cost recovery to address the impacts of new development. Staff is required to assess the current fees in-effect when the fee becomes due – typically on issuance of a building permit or final inspection/certificate of occupancy. The fees for residential development projects are to be paid at the time of final inspection, or the date that a certificate of occupancy is issues, whichever occurs first. (Sections 3.36.100 (B), 3.36.220 (B), 3.36.320 (B), 3.36.420 (B), 3.36.480.) Therefore, for residential development projects for which building permits had been applied for, and for which final inspection had not yet occurred prior to October 6, 2023, those projects would be required to pay the new and increased DIF even though the application for those building permits occurred before the new DIF took effect. Staff believes it is appropriate to consider a further waiver to the new and increased DIF for a limited number of building permit applications that would have otherwise not been required to pay DIFs prior to the effective date of Ordinance No. 517. Therefore, staff presents this report to request a waiver of the DIFs outlined in Ordinance No. 517 are not to be applied to ministerial building permits associated with additions or ADUs that had been submitted to the Building and Safety Division of the Community Development Department prior to October 6, 2023. 137 Honorable City Council 06/05/2024 Regular Meeting Page 4 RECOMMENDATION Based on the effective date of the current Fee Schedule, as implemented by Ordinance No. 517 which became effective on October 6, 2023, it is recommended that applications for building permits for residential additions and ADUs submitted prior to October 6, 2023, and which were not issued a building permit, Certificate of Occupancy, or Final Inspections as of October 5, 2023, would not be required to pay the new and increased Development Impact Fees which would previously have not required payment of DIFs, as outlined in the Draft Resolution (Attachment 1). The waiver of DIFs would be applicable to building permit applications as identified on Exhibit A of Attachment 1. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Section 15273, which indicates that CEQA does not apply to establishment or modification of rates, tolls, or other charges when for the purpose of obtaining funds for capital projects, necessary to maintain service within existing service areas. Therefore, no environmental analysis is required pursuant to CEQA. FISCAL IMPACT The request to waive the collection of development impact fees for the applications listed in Table 1 which were submitted prior to the effective date of the Ordinance No. 517 would result in the City not collecting approximately $155,473.11 in DIF revenue. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) 1.Open the public hearing, accept public testimony, and close the public hearing; and 2. Approve Resolution No. 2024-___ to waive the collection of Development Impact Fees in the amount of $155,473.11 for applications for residential additions and accessory dwelling units that were submitted to the City prior to October 6, 2023, when new development impact fees took effect, which had not been issued a building permit, a Certificate of Occupancy, or a final inspection by October 5, 2023. Attachment: Draft Resolution No. 2024-____ Exhibit A: Building Permit Applications submitted prior to October 6, 2023 (For residential additions or accessory dwelling units: not yet issued a Building Permit, Certificate of Occupancy, or a Final Inspection as of October 6, 2023.) 138 RESOLUTION NO. 2024-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, GRANTING A REQUEST TO WAIVE THE COLLECTION OF DEVELOPMENT IMPACT FEES IN THE AMOUNT OF $155,473.11 FOR APPLICATIONS FOR RESIDENTIAL ADDITIONS AND ACCESSORY DWELLING UNITS THAT WERE SUBMITTED TO THE CITY PRIOR TO OCTOBER 6, 2023, WHEN NEW DEVELOPMENT IMPACT FEES TOOK EFFECT, WHICH HAD NOT BEEN ISSUED A BUILDING PERMIT, A CERTIFICATE OF OCCUPANCY, OR A FINAL INSPECTION BY OCTOBER 5, 2023, AND MAKING A DETERMINATION OF EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) WHEREAS, the Mitigation Fee Act contained in Government Code 66000 et seq., permits the City to impose development impact fees (“DIF”) on new development for the purposes of funding public facilities necessary to serve that new development; and WHEREAS, Resolution No. 2023-4196 was adopted by City Council on July 19, 2023, approving a Development Impact Fee Nexus Study prepared by Harris & Associates, Inc., adopting a Capital Improvement Program as part of the Nexus Study, and setting forth the specific amount of development impact fees that will be levied upon new development in the City for each category of fee (the “New or Increased DIF”); and WHEREAS, Ordinance No. 517, was adopted by City Council on September 6, 2023, amending Chapter 3.36 (“Development Impact Fees”) of the Municipal Code to implement the new or Increased DIF, which became effective on October 6, 2023 (Effective Date); and WHEREAS, as of October 5, 2023, 15 building permit applications had been submitted for residential additions or ADUs that were not yet issued a Building Permit, a Certificate of Occupancy (C of O), or Final Inspection prior to October 6, 2023 (Exhibit A); and WHEREAS, on October 6, 2023, the New or Increased DIF, as provided in Exhibit B to Resolution No. 2023-4196, took effect; and WHEREAS, Ordinance No. 517 did not include language to vest building permits for residential additions or ADUs from having to pay the New or Increased DIF, which were submitted prior to the Effective Date and had not yet been issued a C of O or a Final Inspection prior to the Effective Date. The building permit applications shown on Exhibit A would therefore be required to pay an estimated DIF total of $155,473.11; and WHEREAS, the City Council has determined that it is fair and reasonable to exempt applicants for ministerial building permit applications for residential additions or ADUs that had been submitted to the City’s Community Development Department prior ATTACHMENT 139 Resolution No. 2024-____ Page 2 to Effective Date of the New or Increased DIF (October 6, 2023) from having to pay the New or Increased DIF estimated to be $155,473.11; and WHEREAS, the City Council held a duly noticed public hearing at the June 5, 2024 Regular Council meeting to consider the request and to accept public testimony related thereto. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. RECITALS. The findings and recitals set forth in this Resolution are true and correct, and are incorporated herein. SECTION 2. CEQA. The approval of this resolution provides an exemption from development impact fees on certain limited projects that were submitted on or before a certain date. Pursuant to California Environmental Quality Act (CEQA) Section 15273, CEQA does not apply to establishment or modification of rates, tolls, or other charges when for the purpose of obtaining funds for capital projects, necessary to maintain service within existing service areas. Therefore, no environmental analysis is required pursuant to CEQA. SECTION 3. New Exemption. The New or Increased DIF that were approved as part of Ordinance No. 517 and as provided in Exhibit B of Resolution No. 2023-4196 shall not be applicable to ministerial building permit applications for residential additions or ADUs that were filed prior to October 6, 2023, which have not yet been issued a building permit, a C of O or a Final Inspection prior to October 6, 2023. SECTION 4. Clarification. Except as otherwise provided in Section 3, all other building permits for new development or redevelopment that would generate new units or additional square footage shall pay applicable DIFs for applications made on or after October 6, 2023, and as specified in more detail in Moorpark Municipal Code Chapter 3.36 “Development Impact Fees” and in Resolution No. 2023-4196. SECTION 5. No Changes to Fees. Except as provided in Section 3, nothing in this Resolution shall repeal, amend or supersede any other City imposed fees, including any fee established or imposed by Resolution No. 2023-4196. SECTION 6. The provisions in this Resolution, including the exemption in Section 3 and the clarification in Section 4, shall take effect immediately and shall not be subject to a 60-day delay in the effectiveness pursuant to Government Code Section 66017 because this Resolution is not adopting a new fee or increasing any existing fee, and is instead, providing a limited exemption to an existing DIF and DIF amounts to be estimated as $155,473.11 for the building permits outlined on Exhibit A. SECTION 7. Certification. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 5th day of June, 2024. 140 Resolution No. 2024-____ Page 3 ________________________________ Chris R. Enegren, Mayor ATTEST: ___________________________________ Ky Spangler, City Clerk Exhibit A – Building Permit Applications submitted prior to October 6, 2023 (For residential additions or accessory dwelling units: not yet issued a Building Permit, Certificate of Occupancy, or a Final Inspection as of October 6, 2023.) 141 Resolution No. 2024-____ Page 4 Exhibit A Building Permit Applications submitted prior to October 6, 2023 (For residential additions or accessory dwelling units: not yet issued a Building Permit, Certificate of Occupancy, or a Final Inspection as of October 6, 2023.) 142