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Home My WebLink AboutAGENDA REPORT 2024 1204 CCSA REG ITEM 09DCITY OF MOORPARK, CALIFORNIA City Council Meeting of December 4, 2024 ACTION INTRODUCED ORDINANCE NO. 524. (ROLL CALL VOTE: UNANIMOUS) BY A. Hurtado. D. Consider Ordinance Updating the Annual Period for the Measurement of Inflation for Purpose of the Annual Adjustment of Development Impact Fee Amounts. Staff Recommendation: Introduce Ordinance No. 524, Amending Chapter 3.36 (Development Impact Fees), Sections 3.36.140, 3.36.260, 3.36.360, 3.36.460, 3.36.560. (Staff: Hiromi Dever, Finance Director) (ROLL CALL VOTE REQUIRED) Item: 9.D. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Hiromi Dever, Finance Director DATE: 12/04/2024 Regular Meeting SUBJECT: Consider Ordinance Updating the Annual Period for the Measurement of Inflation for Purpose of the Annual Adjustment of Development Impact Fee Amounts BACKGROUND California Government Code Section 66014 authorizes cities to charge fees for services that may not exceed the reasonable costs of the service being provided. Additionally, Sections 66016, 66018, and 6062(a) set forth the notification and public hearing process required prior to levying fees or service charges, or prior to increasing an existing fee or service charge. On February 1, 2023, the City Council adopted Resolution No. 2023-4157, updating user and regulatory fees and services charges, including real time billing rates. This Resolution authorizes staff to update user and regulatory fees using the annual percentage change in the all-urban Consumer Price Index for Los Angeles-Long Beach- Anaheim, CA. On September 6, 2023, Ordinance No. 517 was adopted establishing a methodology of periodic adjustment to Development Impact Fees (DIF) using the Construction Cost Index (CCI) for the Los Angeles Region as reported by Engineering News Record (ENR) for the 12-month period ending in May. DISCUSSION On September 6, 2023, Ordinance No. 517 was adopted which authorizes updating DIFs by July 1st of each year to reflect the cost of services. Currently, the annual adjustment methodology relies on the annual percentage change in the CCI for the Los Angeles region for the 12-month period ending in May. Item: 9.D. 374 Honorable City Council 12/04/2024 Regular Meeting Page 2 Staff now recommends updating the CCI measurement period from May to February, which provides sufficient time to complete all necessary adjustment to the DIFs by July 1st of each year. The proposed change to the Moorpark Municipal Code affects Sections 3.36.140, 3.36.260, 3.36.360, 3.36.460, and 3.36.560 of Chapter 3.36 (Development Impact Fees). ENVIRONMENTAL DETERMINATION The Community Development Director has determined that the update to the methodology of fee assessments is exempt from the provisions of the California Environmental Quality Act (CEQA), in that the action of the City Council does not involve the consideration of the approval of a project. Pursuant to Public Resources Code Section 15273 and 15378(b)(4), CEQA does not apply to the modification of rates, fares, or other charges which are for the purpose of meeting operating expenses. Even if this action were deemed a "project," it would be exempt from CEQA review under Section 15061(b)(3), as there is no possibility of a significant environmental impact from the approval of the fees and/or charges. FISCAL IMPACT There is no fiscal impact for changing periods from May to February. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) Introduce Ordinance No. ___, Amending Chapter 3.36 (Development Impact Fees), Sections 3.36.140, 3.36.260, 3.36.360, 3.36.460, 3.36.560. Attachment: Draft Ordinance No. ___ 375 ATTACHMENT ORDINANCE NO. ___ AN ORDINANCE OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING SECTIONS 3.36.140, 3.36.260, 3.36.360, 3.36.460, AND 3.36.560 OF CHAPTER 3.36 (DEVELOPMENT IMPACT FEES) OF TITLE 3 (REVENUE AND FINANCE) OF THE MOORPARK MUNICIPAL CODE TO CHANGE THE ANNUAL PERIOD FOR THE MEASUREMENT OF INFLATION FOR PURPOSES OF THE ANNUAL ADJUSTMENT OF DEVELOPMENT IMPACT FEE AMOUNTS WHEREAS, the Mitigation Fee Act contained in Government Code 66000 et seq., permits the City to impose development impact fees on new development for the purposes of funding the public facilities necessary to serve that new development; and WHEREAS, on September 6, 2023, the City Council adopted Ordinance No. 517 updating and amending Chapter 3.36, Development Impact Fees, of Moorpark Municipal Code; and WHEREAS, Chapter 3.36 contains sections that provide for the annual adjustment of Development Impact Fees based on the change in inflation for each 12-month period ending in May of each year for changes to the fee amounts effective July 1st of each year; and WHEREAS, City staff has determined that in order to complete the steps and process to adjust the amount of Development Impact Fees by July 1st of each year, the City needs to use data for the 12-month period ending in February rather than May of each year; and WHEREAS, City staff has reviewed and determined that amendments to Chapter 3.36 are necessary to address the proposed change in the 12-month period by which inflation is measured and to allow for proper annual adjustment of Development Impact Fee amounts; and WHEREAS, the City desires to update the text of the Periodic Adjustment to Fee Amount sections that are provided in Sections, 3.36.140, 3.36.260, 3.36.360, 3.36.460, and 3.36.560 of the Moorpark Municipal Code. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”). This action is not a project within the meaning of the CEQA Guidelines Section 15378(b)(4) and 15061(b)(3) as it has no potential for physical effects on the environment. The Ordinance pertains to the adoption of fees and/or charges imposed by the City, which do not commit the City to 376 Ordinance No. ___ Page 2 any specific project. Future development projects or activities that are subject to the fees will undergo full evaluation in compliance with CEQA when sufficient physical details become available. Additionally, per CEQA Guidelines Section 15378(b)(4), the creation of government funding mechanisms that do not involve a commitment to any specific project that could cause a significant environmental effect is not defined as a "project" under CEQA. Even if this action were deemed a "project," it would be exempt from CEQA review under Section 15061(b)(3), as there is no possibility of a significant environmental impact from the approval of the fees and/or charges. SECTION 2. Section 3.36.140 of Article II (Police Facilities Development Impact Fee) of Chapter 3.36 (Development Impact Fees) of Title 3 of the Moorpark Municipal Code is hereby amended to read as follows: 3.36.140 Periodic Adjustment to Fee Amount. The amount of the police facilities development impact fee shall be automatically adjusted annually for inflation on July 1st of each year using the Construction Cost Index (CCI) for the Los Angeles Region as reported by Engineering News Record (ENR) for the twelve-month period ending in May February or a similar published index if the CCI Index is no longer available, as specified in the resolution that adopts the fee supported by the required studies prepared and adopted pursuant to the Mitigation Fee Act (Government Code Section 66000 et seq.). SECTION 3. Section 3.36.260 of Article III (Library Facilities Development Impact Fee) of Chapter 3.36 (Development Impact Fees) of Title 3 of the Moorpark Municipal Code is hereby amended to read as follows: 3.36.260 Periodic Adjustment to Fee Amount. The amount of the library service facilities development impact fee shall be automatically adjusted annually for inflation on July 1st of each year using the Construction Cost Index (CCI) for the Los Angeles Region as reported by Engineering News Record (ENR) for the twelve-month period ending in May February or a similar published index if the CCI Index is no longer available, as specified in the resolution that adopts the fee supported by the required studies prepared and adopted pursuant to the Mitigation Fee Act (Government Code Section 66000 et seq.). 377 Ordinance No. ___ Page 3 SECTION 4. Section 3.36.360 of Article IV (City Hall Development Impact Fee) of Chapter 3.36 (Development Impact Fees) of Title 3 of the Moorpark Municipal Code is hereby amended to read as follows: 3.36.360 Periodic Adjustment to Fee Amount. The amount of the City Hall Improvements fee shall be automatically adjusted annually for inflation on July 1st of each year using the Construction Cost Index (CCI) for the Los Angeles Region as reported by Engineering News Record (ENR) for the twelve-month period ending in May February or a similar published index if the CCI Index is no longer available, as specified in the resolution that adopts the fee supported by the required studies prepared and adopted pursuant to the Mitigation Fee Act (Government Code Section 66000 et seq.). SECTION 5. Section 3.36.460 of Article V (Citywide Transportation Development Impact Fee) of Chapter 3.36 (Development Impact Fees) of Title 3 of the Moorpark Municipal Code is hereby amended to read as follows: 3.36.460 Periodic Adjustment to Fee Amount. The amount of the Citywide Transportation Fee shall be automatically adjusted annually for inflation on July 1st of each year using the Construction Cost Index (CCI) for the Los Angeles Region as reported by Engineering News Record (ENR) for the twelve-month period ending in May February or a similar published index if the CCI Index is no longer available, as specified in the resolution that adopts the fee supported by the required studies prepared and adopted pursuant to the Mitigation Fee Act (Government Code Section 66000 et seq.). SECTION 6. Section 3.36.560 of Article VI (Park and Recreation Facilities Development Impact Fee) of Chapter 3.36 (Development Impact Fees) of Title 3 of the Moorpark Municipal Code is hereby amended to read as follows: 3.36.560 Periodic Adjustment to Fee Amount. The amount of the park and recreation facilities development impact fee shall be automatically adjusted annually for inflation on July 1st of each year using the Construction Cost Index (CCI) for the Los Angeles Region as reported by Engineering News Record (ENR) for the twelve-month period ending in May February or a similar published index if the CCI Index is no longer available, as specified in the resolution that adopts the fee supported by the required studies prepared and adopted pursuant to the Mitigation Fee Act (Government Code Section 66000 et seq.). 378 Ordinance No. ___ Page 4 SECTION 7. This ordinance shall become effective thirty (30) days after its passage and adoption. SECTION 8. The City Clerk shall certify to the passage and adoption of this ordinance; shall enter the same in the book of original ordinances of said City; shall make a written record of the passage and adoption thereof in the minutes of the proceedings of the City Council at which the same is passed and adopted; and shall publish notice of adoption in the manner required by law. PASSED AND ADOPTED this __th day of December, 2024. ______________________________ Chris R. Enegren, Mayor ATTEST: ___________________________________ Ky Spangler, City Clerk 379