13-C
TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Tae Rhee, Director of Finance/City Treasurer
Elizabeth C. Oba, Director of Planning and Building Services SUBJECT: Consideration and possible action to reconsider residential development impact fee increases and other related matters.
DATE: April 24, 2023
EXECUTIVE SUMMARY
Ordinance No. 1424 took effect on March 28, 2023. Among other things, that Ordinance amended the Bellflower Municipal Code to add two new development impact fees and to increase two existing fees. Resolution No. 23-06, adopted February 13, 2023, provides that the increased development impact fees will take effect April 28, 2023 (in accordance with California law). At Council Member Sanchez’s request, this item was brought back for the Council’s reconsideration of the fees imposed on residential developments.
RECOMMENDATION TO CITY COUNCIL
1) Discuss and potentially reconsider the development impact fee increases on residential developments; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The fiscal impact is unknown until the Council takes specific action related to this item.
DISCUSSION
For the Council’s discussion on the reconsideration of the development impact fee increases on residential developments, an illustrative list of actual development projects that are currently underway and a chart of when the development impact fees apply to various projects are included as attachments. In addition, the following charts illustrate the current and new fee amounts on the average single-family and multi-family units (1,400 s.f. for single-family and 1,000 s.f. for multi-family), new fees at a sliding scale of 70%, 80%, 90%, and 100% of the maximum amount allowed under the law, and the breakeven point of the current fees (approximately 60% of the new fees). - 1 -
Staff Report – Reconsideration of Residential Development Impact Fees April 24, 2023
Please note that the current fees for residential units are “per dwelling unit” fees; however, they have been “converted” to “per square foot” fees to comply with AB 602. For the “per square foot” fees, the single-family unit fees have been divided by the average unit size of 1,400 square feet while the multi-family unit fees have been divided by the average unit size of 1,000 square feet.
ATTACHMENTS
List of Currently Pending Residential Development Projects .......................................... 3 Chart - When the Development Impact Fees Apply ........................................................ 6 February 13, 2023 City Council Staff Report ................................................................... 7 Ordinance No. 1424 ...................................................................................................... 13 Resolution No. 23-06 ..................................................................................................... 23 Current
Fees per
S.F.
(Converted) 70% 80% 90% 100%
Single Family 16.61$ 19.72$ 22.53$ 25.36$ 28.17$ Multi-Family 19.48$ 22.24$ 25.42$ 28.60$ 31.78$ New Fees per S.F.
- 2 -
Attachment - List of Currently Pending Residential Development Projects The following are examples of currently pending development projects and the comparison of fees based on the current rates (fixed unit fees), converted rates (units fees converted to s.f. rates based on average s.f. of units), and the new rates that will be in effect on April 28, 2023. The development projects that submitted a complete building plan to the City are also included below for illustration purposes even though they will not be impacted by the new development impact fees since the plan check requirement was met before the effective date of the new fees. The examples provided only include residential development projects. Staff believes the impact fees related to commercial development projects are appropriate; therefore, examples of commercial development projects are not included.
Project Type Address Project Description
Current
Impact Fees
(Based on the
Per Unit Fees;
See Note
Below)
Current Impact
Fees
(Based on the
Converted Per
S.F. Fees; See
Note Below)
New Impact
Fees
(04/28/2023)
ADU:
Multi-Family
9228 Gardendale
St.
Total Increase in
Square Footage =
2,396 sq. ft.
New Development
Total = 2,396 sq. ft.
Construction of a 2nd
dwelling (SB 9) 1,198
sq. ft., and
construction of a 1,198
sq. ft. ADU on a lot
Existing Structure
749 sq. ft.
single-family unit
Demolish: No $38,946 $46,674 $76,144
RESIDENTIAL: (NONE OF THE PROJECTS BELOW ARE IMPACTED BY THE NEW FEES. THEY ARE PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY.)
Single-Family
10343-10351
Mapledale St.
(Building Plan
Submitted)
Total Increase in
Square Footage =
18,102 sq. ft.
New Development
Total = 20,460 sq. ft.
8-unit PD subdivision
Average: 2,558 sq. ft.
per unit
Existing Structure
Total = 2,358 sq. ft.
2 residential units
Demolish: Yes $139,530 $300,674 $509,933
- 3 -
Attachment - List of Currently Pending Residential Development Projects Project Type Address Project Description
Current
Impact Fees
(Based on the
Per Unit Fees;
See Note
Below)
Current Impact
Fees
(Based on the
Converted Per
S.F. Fees; See
Note Below)
New Impact
Fees
(04/28/2023)
Multi-Family
14721 Blaine Ave.
(Building Plan
Submitted)
Total Increase in
Square Footage =
8,246 sq. ft.
New Development
Total = 9,305 sq. ft.
4 multi-family
residential
development
Average: 2,326 sq. ft.
per unit
Existing Structure
1,059 sq. ft.
single-family unit
Demolish: Yes $58,419
$160,632 $262,058
Multi-Family
8721 Ramona St.
(Building Plan
Submitted)
Total Increase in
Square Footage =
5,187 sq. ft.
New Development
Total = 6,963 sq. ft.
5 multi-family
residential
development
Average: 1,393 sq. ft.
per unit
Existing Structure
Total = 1,776 sq. ft.
688 and 1,088 sq. ft.
multi-family units
Demolish: Yes $58,419
$101,043
$164,844
Multi-Family
17055 Bellflower
Blvd.
(Building Plan
Submitted)
Total Converted
Space = 4,318 sq. ft.
Conversion of office
space to 8 multi-family
residential
development
Per unit size: 330-785
sq. ft.
Existing Structure
Total = 9,211 sq. ft.
Office
Demolish: No $155,784 $84,114 $83,165
- 4 -
Attachment - List of Currently Pending Residential Development Projects Project Type Address Project Description
Current
Impact Fees
(Based on the
Per Unit Fees;
See Note
Below)
Current Impact
Fees
(Based on the
Converted Per
S.F. Fees; See
Note Below)
New Impact
Fees
(04/28/2023)
Multi-Family
9323 Park St.
(Building Plan
Submitted)
Total Increase in
Square Footage =
8,174 sq. ft.
New Development
Total = 9,370 sq. ft.
5 multi-family
residential
development
Average: 1,874 sq. ft.
per unit
Existing Structure
1,196 sq. ft.
single-family unit
Demolish: Yes $77,892 $159,229 $259,770
Note: The current impact fees for residential developments are charged based on the number of dwelling units ($23,255 per unit for single-family and $19,473 per unit for multi-family). Because these types of fees are no longer valid under AB 602, the current per dwelling unit fees have been converted into per square foot fees using the average size of single-family (1,400 sq. ft.) and multi-family (1,000 sq. ft.) homes in Bellflower. The above amounts do not include the Public Art Fee.
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Attachment - Chart - When the Development Impact Fees Apply The following table illustrates when the development impact fees apply based on the prior ordinance and resolution versus the new ordinance and resolution.
Current
Public
Facilities
Fees
New
Public
Facilities
Fees
(04/28/23)
Current
Park Fee
New Park
Fees
(Subdivisions)
(04/28/23)
New Park
Fees (Non-
subdivisions)
(04/28/23)
New
Transpor
-tation
Fee
(04/28/23)
New
Public
Safety
Fee
(04/28/23)
Applicable
to:
New Single
Family Yes Yes
Yes, if
more than
one unit
Yes, if more
than one unit Yes Yes Yes
Replacement
Single Family
No if
building
permit
pulled within
a year for
same
number of
units
Yes, based
on the
additional
square
footage No
Yes, based on
the additional
square footage
Yes, based on
the additional
square
footage
Yes,
based on
the
additional
square
footage
Yes,
based on
the
additional
square
footage
Room Addition No No No No No No No
ADU ≤ 750 sq.
ft. No No No No No No No
ADU > 750 sq.
ft.
Yes,
proportional
to primary
dwelling
Yes,
proportional
to primary
dwelling
Yes,
proportiona
l to primary
dwelling
Yes,
proportional to
primary
dwelling
Yes,
proportional to
primary
dwelling
Yes,
proportion
al to
primary
dwelling
Yes,
proportion
al to
primary
dwelling
Multi-Family Yes Yes Yes Yes Yes Yes Yes
Change of
Use
Yes, if from
non-
residential to
residential
Yes,
charged fee
difference
between the
uses
Yes, if from
non-
residential
to
residential
Yes, if from
non-residential
to residential
Yes, if from
non-residential
to residential
Yes,
charged
fee
difference
between
the uses
Yes,
charged
fee
difference
between
the uses
- 6 -
TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Tae Rhee, Director of Finance/City Treasurer
Anna Garan, Finance Manager
SUBJECT: Consideration and possible action to conduct a public hearing to 1) adopt Resolution No. 23-06 – A Resolution adopting the development impact fees for public facilities, park facilities, public safety facilities, and transportation facilities in accordance with Chapter 3.40 of the Bellflower Municipal Code; and 2) read by title only, waive further reading, and introduce Ordinance No. 1424 – An Ordinance repealing Chapter 3.24 and Sections 3.36.020 and
3.36.060 of the Bellflower Municipal Code, and adding a new Chapter 3.40, entitled “Development Impact Fees” to Title 3 of the Bellflower Municipal Code for the purpose of imposing fees on applicants seeking to construct development projects.
DATE: February 13, 2023
EXECUTIVE SUMMARY
The City currently exacts two development impact fees (“DIFs”) from new development for public and park facilities. In September 2021, the City Council held a study session to consider adjustments to the existing DIFs. After review and discussion, the Council directed staff to work with Willdan Financial Services to add two new DIFs (for public safety and transportation facilities) in Willdan’s fee study. Additionally, the Council created a two-member Subcommittee (Council Members Dunton and Sanchez). At the Subcommittee Meeting in May 2022, the Subcommittee directed staff to make a recommendation to the Council to consider adopting the maximum justifiable fees for all four DIFs as calculated by Willdan. Willdan’s fee study was updated again in January 2023 to factor in new population, dwelling unit, employment, and occupant density information released by the California Department of Finance and U.S. Census Bureau. If adopted, the draft Ordinance would add a new Chapter 3.40 to the Bellflower Municipal Code (“BMC”) to collect all four of the proposed DIFs.
RECOMMENDATION TO CITY COUNCIL
1) Open the public hearing; take documentary and testimonial evidence; and after considering the evidence, adopt Resolution No. 23-06 adjusting existing and adding new development impact fees; and
2) Read by title only, waive further reading, and introduce Ordinance No. 1424 to impose development impact fees for public, park, public safety, and transportation facilities; or 3) Alternatively, discuss and take other action related to this item. - 7 -
Staff Report – Public Hearing - Development Impact Fees February 13, 2023
FISCAL IMPACT
If adopted, the DIFs are estimated to generate approximate additional revenue of $322,000 per year (based on the average of typical/normal development activities in the last four fiscal years). The actual DIF revenue will vary depending on the number and size of the new developments in the City. The following is only an estimate based on historical data.
Facilities Fees
Estimated Annual
Revenue Increase*
Public Facilities / General Government $ 15,000 Parks and Recreation 105,000
Public Safety 10,000
Transportation 192,000
Estimated Total Annual Revenue Increase $ 322,000
* Atypical large development projects in the past four fiscal years are not included in the fiscal impact calculation.
PUBLIC NOTICE
A Notice of Public Hearing was published twice in the Los Cerritos Community Newspaper on January 13 and 20, 2023. On January 13, 2023, a notice was provided in accordance with Government Code Section 66016 to Southern California Gas Company and Southern California Edison pursuant to their written request on file with the City Clerk’s Office (i.e., 14-day notice mailed to anyone who filed a written request for such notice before April 1 of each year), and a Public Hearing Notice was posted at City Hall, Brakensiek Library, Bellflower Substation, Thompson Park, and Simms Park.
BACKGROUND AND DISCUSSION
The Mitigation Fee Act (the “Act”) and other applicable law authorize the City to collect DIFs to offset impacts from “development projects.” The Act allows the City to impose DIFs for the purpose of defraying all or part of the costs of public facilities related to a new development. Without such mitigation, the increased demand for public facilities resulting from new development would cause the quality of a community’s public services to decline. DIFs must have a “reasonable relationship” to the impact of the development project upon public services/facilities.1 If the City charges more, then such a fee may be regarded as a special tax.2
1 see e.g., Government Code §§ 66001 and 66005.
2 Cal. Const., Art. XIII(A), § 4. - 8 -
Staff Report – Public Hearing - Development Impact Fees February 13, 2023
BACKGROUND AND DISCUSSION – Continued
Under the Act, the City may impose DIFs upon new development for “public facilities.” Such facilities are defined as “public improvements, public services, and community amenities.”3 This rather broad language, however, is restricted by Government Code § 65913.8 which states that a DIF “may not include an amount for the maintenance or operation of an improvement….”4 “Facilities” and “improvements” are also defined elsewhere in the Act to include, without limitation, “public buildings” and “[a]ny other capital project identified in the capital facilities plan.”5 In sum, DIFs cannot be used for employee salaries or other fringe benefits; DIF may only be used for equipment or physical improvements to public facilities as set forth in the Act.
To comply with the Act, the DIFs must:
1) Identify the purpose of the fee;
2) Identify the specific use of the fee;
3) Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed; 4) Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is impose; and 5) Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility attributable to the development on which the fee is imposed.
The City currently collects park and public facilities impact fees for capital facility needs created by new development. These impact fees were originally adopted in 2006 and periodically adjusted using the adjustment factors approved at the time of the initial fee adoption. In 2021, the California Legislature adopted Assembly Bill (AB) 602 which created new requirements for development impact fees. Most of the provisions of this new law became effective on January 1, 2022 with some provisions deferred to July 1, 2022.
AB 602 generally requires nexus studies adopted after July 1st to calculate development impact fees proportional to the size of a development project. To comply with this law, the “per dwelling unit” fees have been converted to “per square foot” fees. Agencies are also now mandated to update the nexus study every 8 years and large jurisdictions (counties with more than 250,000 people and cities in those counties) must adopt a capital improvement plan as part of the study. AB 602 also added transparency requirements such as posting the total amount of all fees and exactions for completed projects, schedule of fees and requirements for a development project, and development impact fee reports and nexus studies on the agency’s website.
3 Government Code § 66001(d).
4 Government Code § 65913.8.
5 Government Code § 66002(c). - 9 -
Staff Report – Public Hearing - Development Impact Fees February 13, 2023
BACKGROUND AND DISCUSSION – Continued
On September 13, 2021, a City Council study session was held to present the updated amounts for the two existing development impact fees: public and park facilities. At that time, the City Council directed staff to work with Willdan Financial Services to add two additional fees for public safety and transportation facilities in Willdan’s nexus study. The City Council also formed a two-member Subcommittee (Council Members Dunton and Sanchez) at the same time to review the updated development impact fee nexus study for all four fees. On May 9, 2022, a Subcommittee Meeting was held and the Subcommittee directed staff to make a recommendation to the City Council to consider adopting the maximum justifiable fees as calculated by Willdan (see table below) after review and consideration of Willdan’s updated nexus study and various related issues.
Willdan’s nexus study was updated in January 2023 to reflect the new population, dwelling unit, employment, and occupant density information released by the California Department of Finance and U.S. Census Bureau. If adopted, the new and adjusted fees would become effective on April 28, 2023; this is 60 days after the second reading of the Ordinance (the Ordinance requires 30 days after second reading to become effective).
Maximum Justifiable Fee Amounts per Willdan’s Nexus Study, dated January 17, 2023 *The fees reviewed by the Subcommittee Members are also shown in Blue below for additional reference.
Land Use
Public/ Gen.
Gov’t
Parks and
Recreation Public Safety Transportation Total
Residential - per square foot
Single Family $ 1.64
*$1.72
$ 21.50
*$22.67
$ 0.13
*$0.14
$ 4.90
*$4.91
$ 28.17
*$29.44
Multi-family $ 1.96
*$1.71
$ 25.73
*$22.46
$ 0.16
*$0.14
$ 3.93
*$3.94
$ 31.78
*$28.25
Nonresidential - per square foot
Commercial $ 0.45
*$0.45
$ - $ 0.55
*$0.56
$ 8.66
*$8.69
$ 9.66
*$9.70
Office $ 0.70
*$0.70
$ - $ 0.85
*$0.86
$ 10.97
*$11.01
$ 12.52
*$12.57
Industrial $ 0.25
*$0.25
$ - $ 0.30
*$0.31
$ 5.17
*$5.19
$ 5.72
*$5.75
The following table was prepared to inform the City Council regarding nearby cities’ fees for the common types and sizes of developments in Bellflower – 1,400 sq. ft. for single family residential unit, 1,000 sq. ft. for multi-family residential unit, and 2,500 sq. ft. for fast-food restaurant with drive thru. Other cities may have a different way of calculating the development impact fees for a similar project so various assumptions have been taken to compare Bellflower’s fees. This comparison is only informational; it does not have a legal effect on the City’s DIF calculations.
Fee Comparison with Neighboring/Nearby Cities (based on common types and sizes of developments)
- 10 -
Staff Report – Public Hearing - Development Impact Fees February 13, 2023
Agency Name
Public/
Gen. Gov’t
Parks and
Recreation
Public
Safety
Transpor-
tation Other* Total
City of Bellflower
Single Family $ 2,296 $ 30,100 $ 182 $ 6,860 $ - $ 39,438 Multi-family 1,960 25,730 160 3,930 - 31,780 Commercial 1,125 - 1,375 21,650 - 24,150 City of Artesia
Single Family $ 5,495 $ 12,052 $ - $ 3,020 $ 7,779 $ 28,346 Multi-family 4,087 8,965 - 2,024 5,537 20,613 Commercial 2,803 - - 11,743 2,068 16,614 City of Downey
Single Family $ - $ 500 $ - $ - $ - $ 500 Multi-family - 380 - - - 380 Commercial - - - - - - City of Paramount
(assumes area of development is in a Multiple Residential or Planned Development with Performance Standards zones for park fees, and fire flow requirement of 0 to 750 g pm per 2 hours for water capital improvement fees ) Single Family
(3 bedrooms) $ - $ 1,000 $ - $ - $ 1,320 $ 2,320 Multi-family
(3 bedrooms) - 1,000 - - 1,320 2,320 Commercial
(fast-food with 30
seats in a 32,000
sq. ft. lot) - - - - 1,332 1,332 City of Whittier
Single Family $ 963 $ 5,667 $ - $ - $ 1,063 $ 7,693 Multi-family 803 4,728 - - 886 6,417 Commercial - - - - - -
City of Cypress (transportation includes regional traffic improvement fees) Single Family $ - $ 23,421 $ - $ 647 $ - $ 24,068 Multi-family - 23,421 - 552 - 23,973 Commercial - - - 51,125 - 51,125 City of Long Beach
Single Family $ - $ 4,613 $ 703 $ 1,125 $ 496 $ 6,937 Multi-family - 3,563 537 1,125 378 5,603 Commercial - - 1,105 7,500 668 9,273
City of Lakewood (assumes land cost is $60.38 per sq. ft., 8 single family units per acre and 22 multi-family units per acre; This fee only applies to residential development occurring in subdivisions) Single Family
(per unit) $ - $ 15,774 $ - $ - $ - $ 15,774 Multi-family
(per unit) - 12,257 - - - 12,257 Commercial - - - - - -
City of Cerritos does not have any development impact fees.
*Other column includes various types of development impact fees such as fire, community center/aquatic, sewer, storm drain, water capital improvement, library, etc. - 11 -
Staff Report – Public Hearing - Development Impact Fees February 13, 2023
BACKGROUND AND DISCUSSION – Continued
Staff recommends removing BMC § 3.36.020 and § 3.36.060 governing the parkland dedication fee. BMC § 3.36.060, allows a developer to use an appraisal report to pay lower park fees. Repealing this provision will promote equity among fee payers and prevent larger developers from producing appraisal reports that will always result in lower fees for their developments. BMC § 3.36.020, allows developers to receive a fee discount on the second dwelling unit (the discount is recaptured in the event a third unit is constructed). AB 602 now requires a fee imposed on a housing development project to be calculated “proportionately to the square footage of proposed units of the development.” To satisfy this new legal requirement, the City’s fixed fees were converted into the per square foot-based fees. Accordingly, second dwelling units that are generally smaller in size will now be charged lower fees under AB 602 without the need for BMC § 3.36.020.
ATTACHMENTS:
1. Resolution No. 23-06 ................................................................................................. 7
2. Exhibit A to Resolution No. 23-06 – Development Impact Fee Update Study (Nexus Report) dated January 17, 2023 .................................................................. 11
3. Ordinance No. 1424 ................................................................................................. 62
- 12 -
CITY OF BELLFLOWER
ORDINANCE NO. 1424
AN ORDINANCE REPEALING CHAPTER 3.24 AND SECTIONS 3.36.020 AND 3.36.060 OF THE BELLFLOWER MUNICIPAL CODE, AND ADDING A NEW CHAPTER 3.40, ENTITLED "DEVELOPMENT IMPACT FEES"
TO TITLE 3 OF THE BELLFLOWER MUNICIPAL CODE FOR THE
PURPOSE OF IMPOSING FEES ON APPLICANTS SEEKING TO
CONSTRUCT DEVELOPMENT PROJECTS
THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:
SECTION 1: The City Council finds and declares as follows:
A. New land development generates impacts on public services and public facilities for which revenues generated through property taxes and other means are generally insufficient to accommodate;
B. Impact fees are desirable and necessary for the City to more fully pay for the public costs of new growth and development;
C. It is the City's intent and desire to have developers pay for their fair share of public costs associated with new development while at the same time facilitating growth that is in the public interest;
D. The City is mindful of the constitutional limitations and restrictions verified by cases such as City of Monterey v. Del Monte Dunes at Monterey, Ltd., et al. (1999) 526 U.S. 687, Dolan v. City of Tigard(1994) 512 U.S. 374, and Nolan v. Cal. Coastal Comm'n (1987) 483 U.S. 825, and Ehrlich v. City of Culver City(1996) 12 Cal.4 h 854. This Ordinance is intended to, and does, comply with such constitutional limitations on the City's police powers; E. The Mitigation Fee Act (Government Code §§ 66000, et seq.) enables and encourages the City to enact appropriate development impact fees; F. The imposition of impact fees is one of the preferred methods of ensuring that development bears a proportionate share of the cost of capital facilities necessary to accommodate such development. This must be done in order to promote and protect the public health, safety and welfare; and G. The fees established by this ordinance are derived from, are based upon, and do not exceed the costs of providing capital facilities necessitated by the new land developments for which the fees are levied; H. The City assumes the responsibility for and is committed to providing public facilities at levels necessary to cure any existing deficiencies in already developed areas. Impact fees collected pursuant to this Chapter will not be used to cure existing deficiencies in public facilities; and
- 13 -
City of Bellfiower
Ordinance No. 1424
I.To the extent that new development in designated benefit areas places demands upon public facilities, those demands should be satisfied by shifting the responsibility for financing the provision of such facilities from the public to the development creating the demands; and J. The report entitled "Development Impact Fee Update Study" dated January 17, 2023, (and as may be revised from time to time) sets forth reasonable methodology and analysis for the determination of the impact of new development on the need for and costs for additional capital facilities improvements in the City.
K. After careful consideration, including a review of the documentary and testimonial evidence submitted during a public hearing on February 13, 2023, the City Council finds that the imposition of impact fees to finance specified major public facilities in designated benefit areas is in the best interests of the general welfare of the City and its residents, is equitable, and does not impose an unfair burden on new development.
L. It is in the public interest to adopt this ordinance for the purpose of protecting the public health, safety, and welfare.
SECTION 2: A new Chapter 3.40, entitled "Development Impact Fees," and consisting of§§ 3.40.010 to 3.40.130, is added to Title 3 of the Bellflower Municipal Code BMC") to read as follows:
Chapter 3.40
DEVELOPMENT IMPACT FEES
3.40.010 PURPOSE.
3.40.020 APPLICABILITY.
3.40.030 EXEMPTIONS.
3.40.040 DEFINITIONS.
3.40.050 NOTICE AND HEARING REQUIREMENTS.
3.40.060 IMPOSITION OF FEES/AUTOMATIC ADJUSTMENT.
3.40.070 IMPACT FEE ACCOUNTS.
3.40.800 USE OF IMPACT FEE PROCEEDS.
3.40.090 REFUNDS.
3.40.100 PROTESTS, APPEALS, AND AUDITS.
3.40.110 AMENDMENT PROCEDURES.
3.40.120 CREDITS.
3.40.130 CONFLICTS.
- 14 -
City of Beliflower
Ordinance No. 1424
3.40.010 PURPOSE. This chapter is adopted pursuant to the city's police powers and the Mitigation Fee Act (Government Code §§ 66000, et seq.) for the purpose of imposing fees on applicants seeking to construct development projects. The purpose of such fees is to minimize, to the greatest extent practicable, the impact that new development has on the city's public services and public facilities. Toward that end, the city intends that development projects pay their fair share of the costs of providing such public services and public facilities.
3.40.020 APPLICABILITY. Unless expressly excepted or exempted, this chapter applies to all fees imposed by the city to finance public facilities attributable to new development, including without limitation:
A. General Facilities, Vehicles, and Equipment;
B. Community, Activity and Sports Facilities, Centers and Equipment; C. Public Safety Facilities, Vehicles, and Equipment; D. Road Project Construction, Right-of-Way Acquisition, and Engineering;
3.40.030 EXEMPTIONS. This chapter does not apply to:
A. Taxes and special assessments;
B. Fees for processing development applications;
C. Fees for enforcing regulations;
D. Fees collected under development agreements;
E. Fees imposed pursuant to a reimbursement agreement between the city and a property owner for that portion of the cost of a public facility paid for by the property owner which exceeds the need for the public facility attributable to, reasonably related to, and roughly proportional to the development;
F. Certain accessory dwelling units identified by California law; G. Fees to mitigate impacts on the environment; or H. Fees imposed, levied or collected by other governmental agencies including subdivisions of the state and federal government.
- 15 -
City of Bellflower
Ordinance No. 1424
3.40.040 DEFINITIONS. Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this chapter:
A. "Benefit area" means the geographic area within which impact fees are collected and expended for a particular type of capital improvement serving development projects within such area.
B. "Capital improvement" means land or facilities for the collection and disposal of stormwaters and for watershed preservation purposes; for purposes of transportation and transit, including without limitation, streets, street lighting and traffic-control devices and supporting improvements, roads, overpasses, bridges, airports, and related facilities; for parks and recreational improvements; for public safety, including police and fire facilities; for schools and child care facilities; for libraries and public art; for public buildings of all kinds; and for any other capital project identified in the city's Capital Improvements Plan. Capital improvement also includes design, engineering, inspection, testing, planning, legal land acquisition and all other costs associated with construction of a public facility.
C. "Capital Improvements Plan" means the long-term plan for capital improvements, adopted by the City Council, describing the estimated cost of capital improvement projects and identifies sources of funding for capital improvement projects.
D. "Capital Improvements Project List" means the list attached to a Council resolution setting the base fee amount for each specific impact fee.
E. "Collection" means the point in time at which the impact fee is actually paid over to the City.
F. "CommitmenY' means earmarking impact fees to fund or partially fund capital improvements serving new development projects.
G. "Dwelling unit" means one or more rooms in a building or a portion of a room, designed, intended to be used, or actually used for occupancy by one family for living and sleeping quarters, and containing one kitchen only, and includes a mobile home, but not hotel or motel units.
H. "Impact fee" means any monetary exaction imposed by the City as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the cost of or repayment of costs previously expended from other City funds for capital improvements relating to the project.
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City of Beliflower
Ordinance No. 1424
I.Impose" means to determine that a particular development project is subject to the collection of impact fees as a condition of development approval.
J. "New development" or "development project" means and includes any project undertaken for the purpose of development including, without limitation a project involving requiring a permit for construction, reconstruction, or change of use, but not a project involving a permit for operating, remodeling, rehabilitating, or improving an existing structure, nor the rebuilding of a structure destroyed or damaged through natural disaster, nor the replacement of one mobile home with another on the same pad if no dwelling unit is added.
K. "Nonresidential development project" means all development other than residential development projects.
L. "Residential development projecY' means, except as provided by applicable law, any development undertaken to create a new dwelling unit or units.
3.40.050 NOTICE AND HEARING REQUIREMENTS.
A. Any legislative action adopting an ordinance, resolution, or other legislative enactment adopting a new impact fee or approving an increase in an existing fee must be accomplished in accordance with Government Code § 66018.
B. Any costs incurred by the City in conducting public hearings required by this section may be recovered as a part of the impact fees which are the subject of the hearing.
3.40.060 IMPOSITION OF FEES/AUTOMATIC ADJUSTMENT.
A. Except as otherwise provided, persons submitting applications seeking approval for new development projects must pay the City impact fees, in an amount set by city council resolution, as a condition for the City to approve such development projects.
B. Except as otherwise provided by law, no tentative or final subdivision map, parcel map, grading permit, building permit, final inspection, or certificate of occupancy, or other development permit, may be approved unless the provisions of this section are fulfilled.
C. Impact fees will be imposed by including substantially the following language in any document of development approval:
All fees imposed pursuant to Chapter 3.40 of the Bellflower Municipal Code must be paid to the City before this project is approved."
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City of Bellflower
Ordinance No. 1424
D. Except for residential development projects, the City's Planning Director or designee will collect impact fees before the City issues a building permit, except that the connection fees are collected at the time an applicant seeks to connect to the City's utility system. For residential development projects, the City's Planning Director or designee will collect impact fees upon final inspection or the date that a final certificate of occupancy is issued, whichever comes last.
E. Unless otherwise provided by city council resolution, the impact fees established by this chapter will be automatically adjusted on an annual basis at the beginning of each fiscal year with a maximum annual increase of 5% by applying the percentage change of the Los Angeles Construction Cost Index (CCCI) for the prior 12 month period ending on April 30 published by Engineering News-Record (ENR). The first impact fee adjustment cannot be made before a minimum of 10 months after the effective date of this Section.
3.40.070 IMPACT FEE ACCOUNTS.
A. The City must establish an impact fee account for each benefit area and for each type of capital improvement for which an impact fee is imposed.
Impact fees collected must be deposited in each such account according to type of improvement and benefit area. The funds of the account cannot be commingled with the City's other funds. Any account previously established for the deposit of funds which would have been developer impact fees under this chapter are deemed an impact fee account for the purposes of this chapter.
B. Each impact fee account must be interest-bearing and the accumulated interest will become a part of the account.
C. The funds of each account will be expended within the benefit area exclusively for the capital improvements for which the impact fees were collected.
3.40.080 USE OF IMPACT FEE PROCEEDS. Impact fees may be expended only for the type of capital improvements for which they were imposed, calculated, and collected and according to the time limits and procedures established in this chapter. Impact fees may be used to pay the principal, interest and other costs of bonds, notes and other obligations issued or undertaken by or on behalf of the City to finance such improvements.
3.40.090 REFUNDS.
A. Except as described in this section, upon application of the property owner, the City must refund that portion of any impact fee which has been on deposit over five years and which is unexpended and uncommitted. The refund will be made to the then-current owner or owners of lots or units of - 18 -
City of Bellflower
Ordinance No. 1424
the development project or projects, provided that the then-current owner submits an application for a refund to the City within 180 days before the five-year period expires.
B. If fees in any impact fee account are unexpended or uncommitted, starting with the fifth fiscal year after the first deposit into the account or fund, and every subsequent five years, the City Council must make the findings required by Government Code § 66001(d)for maintaining funds on deposit.
If the Council makes such findings, the fees are exempt from the refund requirement.
C. The City may issue refunds through direct payment; offsetting the refund against other impact fees due for development projects by the owner on the same or other property; or otherwise by agreement with the owner. If the costs of refunding the impact fees would exceed the amount refunded, the City may instead comply with Government Code § 66001(f).
3.40.100 PROTESTS, APPEALS, AND AUDITS. All protests, appeals, and audits must be conducted in accordance with the procedures contained in the Mitigation Fee Act commencing at Government Code §§ 66020 et seq.).
3.40.110 AMENDMENT PROCEDURES. Before the City Council's adoption of the budget and revisions to the Capital Improvements Project List, the city manager, or designee, must report to the City Council with:
A. Recommendations for amendments to this chapter and to other parts of this code and to resolutions establishing impact fees;
B. Proposals for changes to the Capital Improvements Project List, identifying capital improvements to be funded, in whole or in part, by impact fees; C. Proposals for changes in the boundaries of benefit areas; and D. Proposals for changes to impact fee rates and schedules.
3.40.120 CREDITS.
A. A property owner who dedicates land or agrees to participate in an assessment district or otherwise contributes funds for capital improvements, as defined in this chapter, may be eligible for a credit for such contribution against the impact fee otherwise due.
B. The Planning Director must determine: (1) whether the contribution meets capital improvement needs for which the particular impact fee has been imposed; (2) whether the contribution will substitute for or otherwise reduce the need for capital improvements anticipated to be provided with impact fee funds; and (3) the value of the developer contribution. In no event, - 19 -
City of Bellflower
Ordinance No. 1424
however, will the credit exceed the amount of the otherwise applicable impact fee.
C. Any application for credit must be submitted at or before the time of development project approval on forms provided by the city. The application must contain a declaration of those facts, under oath, along with the relevant documentary evidence which qualifies the property owner for the credit.
3.40.130 CONFLICTS. In the event of a conflict between the provisions of this chapter and the provisions of any other ordinance or resolution establishing or amending impact fees, the provisions of this chapter govern."
SECTION 3: BMC Chapter 3.24, Public Facilities Fee, is repealed in its entirety; BMC § 3.36.020 and 3.36.060 are repealed in their entirety.
SECTION 4: Repeal of any provision of the BMC, or any other City resolution or ordinance herein will not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance.
SECTION 5: This ordinance is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.) because it establishes fees and charges for the purpose of obtaining funds for capital projects necessary to maintain service within existing service areas. This Ordinance, therefore, is categorically exempt from further CEQA review under Cal. Code Regs. Title 14, § 15273.
SECTION 6: If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable.
SECTION 7: This Ordinance may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 8: The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the city of Bellflower's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law.
SECTION 9: This Ordinance will take effect on the 30th day following its final passage and adoption.
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City of Beliflower
Ordinance No. 1424
ORDINANCE NO. 1424 HAD ITS FIRST READING ON FEBRUARY 13, 2023, ITS SECOND READING ON FEBRUARY 27, 2023, AND WAS DULY PASSED,
APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER AT ITS REGULAR MEETING OF FEBRUARY 27, 2023. 7 Sonny R. Santa Ines, Mayor
ATTEST:
ayr O iqui lerk
APPR D RM:
l
Karl H. Berger, ity Attorney
I
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES ) SS
CITY OF BELLFLOWER
I, Mayra Ochiqui, City Clerk of the City of Bellflower, California, do hereby certif under enalt of er u that:Y p Y p J rY
Ordinance No. 1424 had its first reading on February 13, 2023, by the following vote to wit:
AYES: Council Members — Dunton, Koops, Sanchez, and
Mayor Santa Ines
ABSENT: Council Member— Mayor Pro Tem Hamada
Ordinance No. 1424 had its second reading on February 27, 2023, and was duly passed, approved and adopted by the City Council of the City of Bellflower at its regular meeting of February 27, 2023, by the following vote to wit:
AYES: Council Members — Dunton, Koops, Sanchez, and
Mayor Santa Ines
ABSENT: Council Member— Mayor Pro Tem Hamada
Dated: February 28, 2023
ayr Oc qui, Ci y C er
City f Be Iflower, California
SEAL)
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CITY OF BELLFLOWER
RESOLUTION NO. 23-06
A RESOLUTION ADOPTING DEVELOPMENT IMPACT FEES FOR
PUBLIC FACILITIES, PARK FACILITIES, PUBLIC SAFETY FACILITIES,
AND TRANSPORTATION FACILITIES IN ACCORDANCE WITH
CHAPTER 3.40 OF THE BELLFLOWER MUNICIPAL CODE
THE CITY COUNCIL DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council finds and declares that:
A. New land development generates impacts on public services and public facilities for which revenues generated through property taxes and other means are generally insufficient to accommodate;
B. It is the City's objective to provide the highest and most efficient level of public services and public infrastructure financially possible; C. The General Plan for the City of Bellflower requires that adequate urban services be available to meet the needs of new development; D. It is the City's intent and desire to have developers pay for their fair share of public costs associated with new development while at the same time facilitating growth that is in the public interest;
E. The imposition of impact fees is one of the preferred methods of ensuring that development bears a proportionate share of the cost of capital facilities necessary to accommodate such development. This must be done in order to promote and protect the public health, safety and welfare; F. The City Council may establish development impact fees for public safety, general facilities, transportation, and parks under the provisions of the Mitigation Fee Act (Government Code §§ 66000-66025) and the Quimby Act (Government Code Section 66477);
G. This Resolution is adopted pursuant to Chapter 3.40 of the Bellflower Municipal Code ("BMC") for the purposes of calculating development impact fees;
H. The fees established by this Resolution are derived from, are based upon, and do not exceed the costs of providing capital facilities necessitated by the new land developments for which the fees are levied;
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City of Bellflower
Resolution No. 23- 06
I.The report entitled "Development Impact Fee Update Study" dated January 17, 2023 ("Fee Study"), prepared by Willdan Financial Services, sets forth a reasonable methodology and analysis for the determination of the impact of new development on the need for and costs for additional capital facilities improvements in the City. The Fee Study is adopted and attached as Exhibit "A," and incorporated by reference; J.City Council evaluated the Fee Study, and approved the fee schedule identified in Section 3 of this Resolution;
K. Pursuant to Government Code § 66016, the City made data available regarding the cost, or estimated cost, of providing services for the proposed public facility impact fees 10 days before the public hearing held on February 13, 2023;
L. On February 13, 2023, the City Council heard public testimony and considered evidence in a public hearing held and noticed in accordance with Government Code §§ 66016 and 66018 and closed the public hearing; M. After careful consideration, including a review of the documentary and testimonial evidence submitted during the public hearing, the City Council finds that the imposition of impact fees to finance major public facilities is in the best interests of the general welfare of the City and its residents and workers, is equitable, and does not impose an unfair burden on new development;
N. At the recommendation of the City's Departments and the City Manager, the City Council believes that it is in the public interest to establish the recommended fees to recover costs;
O. On February 13, 2023, the City Council approved a statutory exemption to the California Environmental Quality Act ("CEQA") and adopted this draft Resolution; and
P. This Resolution relies on the documentary and testimonial evidence submitted to the City during the public hearing held on February 13, 2023, City Council meeting in addition to such additional information that may be in the administrative record.
SECTION 2. Calculation of Development Impact Fees.
A. The Development Impact Fee Calculation and Nexus Report (aka "Fee Study"), prepared by Willdan Financial Services calculates fees for public, parks, public safety, and transportation facilities that would fund the fair share cost to new development for additional capital facilities and equipment improvements;
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City of Bellflower
Resolution No. 23-06
6. The study is based on a planning horizon of build-out of all available land within the City;
C. The level of development fees in the Fee Study is based on a reasonable methodology to determine the impacts and costs of new development; D. The City may adopt development impact fees up to the amounts legally justified in the Fee Study;
E. For any change in use or uses, if the new use or uses are in a fee category that has fee amounts greater than the existing use or uses, then the additional impact fees will be an amount equal to the difference between the impact fees for the new use or uses and the impact fees for the former use or uses.
SECTION 3. Schedule of Development Impact Fees. Based upon the methodology identified in Section 2 and City Council direction at the public hearing, the development impact fees are established as follows:
Public/ Gen. Parks and Public
Land Use Gov't Recreation Safet Trans ortation Totai
Residential - er s uare foot
Sin le Famil 1.64 $ 21.50 $ 0.13 4.90 $ 28.17 Multi-famil 1.96 25. 73 0.16 3.93 31.78
Nonresidential - er s uare foot
Commercial 0.45 0.55 8.66 9.66
Office 0.70 0.85 10.97 12.52
Industrial 0.25 0.30 5.17 5.72
SECTION 4. Fee Adjustment. Unless otherwise revised, the fees established by this Resolution will be automatically adjusted on an annual basis beginning on July 1, 2025.
SECTION 5. Exempt under the California Environmental Quality Act. In accordance with the Public Resources Code (Cal. Pub. Res. Code §§ 21000, et seq.; CEQA") and the California Environmental Quality Act (CEQA) Guidelines (Cal. Code Regs. Title 14, Code §§ 15000, et seq.; "CEQA Guidelines"), the proposed resolution is statutorily exempt from the requirements of CEQA pursuant to CEQA Guidelines § 15273 Rates, Tolls, Fares and Charges). CEQA does not apply to the establishment of the public facilities mitigation fees as the fees are for the purpose of a) purchasing or leasing supplies, equipment, or materials; and b) obtaining funds for capital projects, necessary to maintain service within existing service areas. This Resolution, therefore, is categorically exempt from further CEQA review under CEQA Guidelines § 15273. - 25 -
City of Bellflower
Resolution No. 23-06
SECTION 6. Effective Date of this Resolution. This Resolution will become effective upon second reading of Ordinance No. 1424. The development impact fees that are established pursuant to Section 3 of this Resolution and imposed upon development projects become effective on April 28, 2023. Building plans that are submitted to the City of Bellflower for plan check and that are determined to be complete by the Planning Director, or designee (that is, detailed architectural plans including dimensioned site plan, floor plans, elevations, and structural plans, and all plan check application fees were paid to the City) submitted before April 28, 2023, are exempt from the regulations contained in this Resolution and are subject to the City's existing impact fees. Excluding any time extension granted by the City's Building Official, completed building plans expire within one year unless the City issues a valid building permit. Thereafter, an applicant must submit new building plans and pay all impact fees pursuant to this Resolution. Any dispute regarding the Planning Director's final determination that (a) building plans are incomplete; or (b) whether complete plans were submitted before April 28, 2023, must be appealed pursuant to the BMC. Any dispute regarding the amount of impact fees due for a project must be appealed pursuant to the BMC.
SECTION 7. City Clerk. The City Clerk will certify the passage and adoption of this Resolution; will enter the same in the book of original Resolutions of said City; and will make a minute of the passage and adoption thereof in the record of proceedings of the City Council of said City, in the minutes of the meeting at which the same is passed and adopted.
SECTION 8. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 9. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or her duly appointed deputy, is directed to attest thereto.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 13T" DAY OF FEBRUARY 2023.
0/ %?\t
Sonny R. Santa Ines, Mayor
ATTEST:
Mayra chi i, Cit Clerk
APP VEf AS T FORM:
v,_._._
Karl H. erger;Ci y Attorney
r
ATTACHME .
Exhibit A – D opment Impact Fee Update Study dated January 17, 2023 - 26 -