14-C
TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Tae Rhee, Director of Finance/City Treasurer
SUBJECT: Consideration and possible action to adopt Resolution No. 23-16 – A Resolution amending Resolution No. 23-06 adopted on April 24, 2023, as to development impact fees for residential projects in accordance with Chapter 3.40 of the Bellflower Municipal Code.
DATE: May 8, 2023
EXECUTIVE SUMMARY
Pursuant to the City Council’s action on April 24, 2023, the draft Resolution would reduce development impact fees on residential projects (“DIFs”) as follows:
80% of the maximum fees, effective 60 days from adoption of the new resolution; 90% of the maximum fees, effective 2 years thereafter (2025); 100% of the maximum fees, effective 2 years thereafter (2027); and CCI (Construction Cost Index) adjustment every two years thereafter.
If adopted, the Resolution would suspend implementation of the residential DIFs that otherwise took effect on April 28, 2023; the new residential DIFs would take effect on July 7, 2023. The draft Resolution does not affect the commercial DIFs which become effective April 28, 2023.
RECOMMENDATION TO CITY COUNCIL
1) Adopt Resolution No. 23-16; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
Each 10% reduction in the residential fees will reduce the anticipated revenues by approximately $49,000 per year. This estimate does not account for large, atypical projects that do not occur on a regular basis.
ATTACHMENT
Resolution No. 23-16....................................................................................................... 2
CITY OF BELLFLOWER
RESOLUTION NO. 23-16
A RESOLUTION AMENDING RESOLUTION NO. 23-06 ADOPTED ON
APRIL 24, 2023 AS TO DEVELOPMENT IMPACT FEES FOR
RESIDENTIAL PROJECTS IN ACCORDANCE WITH CHAPTER 3.40 OF
THE BELLFOWER MUNICIPAL CODE
THE CITY COUNCIL DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council finds and declares that:
A. On February 13, 2023, the City Council adopted Resolution No. 23-06 which, among other things, approved a statutory exemption to the California Environmental Quality Act (“CEQA”) regarding implementation of the development impact fees (“DIFs”) adopted by that Resolution;
B. On April 24, 2023, the City Council considered the DIFs adopted by Resolution No. 23-06 as to their effect on residential projects. Following discussion, the City Council opted to reduce the amount of DIFs in the manner set forth in this Resolution. Because the City Council’s action was to reduce fees that were already adopted by Resolution No. 23-06, no additional public hearing was required;
C. This Resolution relies on the documentary and testimonial evidence submitted to the City during the public hearing held on February 13, 2023 and the City Council meeting held on April 24, 2023 in addition to such additional information that may be in the administrative record.
SECTION 2. Schedule of Development Impact Fees. Section 3 of Resolution No. 23-06 is amended as to Residential DIFs to read as follows:
Land Use
Public/ Gen.
Gov’t
Parks and
Recreation
Public
Safety Transportation Total
Residential - per square foot fee
Effective July 7, 2023:
Single Family $ 1.31 $ 17.20 $ 0.10 $ 3.92 $ 22.53 Multi-family 1.57 20.58 0.13 3.14 25.42
Effective July 1, 2025:
Single Family $ 1.48 $ 19.35 $ 0.12 $ 4.41 $ 25.36 Multi-family 1.76 23.16 0.14 3.54 28.60
Effective July 1, 2027:
Single Family $ 1.64 $ 21.50 $ 0.13 $ 4.90 $ 28.17 Multi-family 1.96 25.73 0.16 3.93 31.78
Effective July 1, 2029:
The residential fees established by this Resolution will be adjusted on a biennial basis as of July 1 by applying the percentage change in the Los Angeles Construction Cost Index (CCI) for the latest prior 24-month period for April as published by Engineering News-Record (ENR).
City of Bellflower
Resolution No. 23-16
SECTION 3. Effective Date of this Resolution. This Resolution will become effective upon adoption. Upon adoption, this Resolution will retroactively suspend the residential DIFs in Section 3 of Resolution No. 23-06 that took effect on April 28, 2023.
Nothing in this Resolution, however, affects the non-residential DIFs that took effect pursuant to Resolution No. 23-06. The development impact fees that are established pursuant to Section 2 of this Resolution and imposed upon residential development projects become effective on July 7, 2023.
SECTION 4. No other Amendments. Unless specifically amended by this Resolution, Resolution No. 23-06 remains in full force and effect. Non-residential DIFs adopted by Resolution No. 23-06 took effect April 28, 2023.
SECTION 5. 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 6. 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 7. 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 8TH DAY OF MAY 2023.
________________________________
Sonny R. Santa Ines, Mayor
ATTEST:
________________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
________________________________
Karl H. Berger, City Attorney