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ORDINANCE 1673ORDINANCE NO. 1673 AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE ("ESMC") TITLE 15 TO ESTABLISH A FEE DEFERRAL PROGRAM ("PROGRAM"), TO ADJUST THE DEADLINE OF DEVELOPMENT IMPACT FEE PAYMENTS TO PRIOR TO ISSUANCE OF A CERTIFICATE OF OCCUPANCY OR FINAL INSPECTION. (ENVIRONMENTAL ASSESSMENT NO. 1384 AND ZONE TEXT AMENDMENT NO. 25-03) The City Council of the city of El Segundo does ordain as follows: SECTION 1: The Council finds and declares as follows: A. On April 1, 2021, the City awarded a Professional Services Agreement to Revenue & Cost Specialists LLC to develop a comprehensive Development Impact Fee Calculation Nexus Report for new development to fund improvements that address the cumulative infrastructure impacts associated with new development. B. On May 11, 2022, Revenue & Cost Specialists LLC submitted the final Development Impact Fee Calculation Nexus Report (the "Nexus Study"). The Nexus Study recommends that the current development impact fees ("DIFs") (those for police, fire, and library facilities) be increased for all development types (residential, commercial, Industrial, and Institutional) and that new DIFs for Parkland Facilities, Streets -Signals & Bridges, Storm Drain Facilities, Water Distribution, Wastewater Collection Facilities, General Government Facilities, Public Meeting Facilities, and Aquatic Center Facilities be allocated for residential, commercial, Industrial, and institutional development based on their forecast of the infrastructure demand and analysis of improvement needs. The fees are allocated by residential unit and commercial/Industrial/Institutional square footage. C. The proposed DIFs are consistent with the California Government Code Section 66000 et seq. that enables local agencies to charge mitigation fees. D. On June 21, 2022, the City Council heard public testimony and considered evidence in a public hearing held in accordance with Government Code §§ 66016 and 66018. E. Based upon the evidence set forth in the Nexus Study and the administrative record as a whole, the City Council finds that there is a reasonable relationship between the amount of the DIF and the cost of the public facility or portion thereof attributable to the development on which the DIF is imposed, the proposed use of each DIF and the type of development on which it will be imposed, and the need for the public facilities identified in the Nexus Study and the type of development project on which the corresponding DIF will be imposed. ORDINANCE NO. 1673 Page 1 of 6 F. On June 21, 2022, the City Council adopted the May 11, 2022 Impact Fee Nexus Study and the approval of increases to existing development impact fees. G. At the February 18, 2025 City Council meeting, a study session was held to consider a building permit fee and development impact fee deferral program. The proposed program would adjust the deadline for certain building permit fee payments to before the issuance of a certificate of occupancy or final inspection, whichever comes first. The City Council directed staff to further explore the deferral program; H. On March 27, 2025, the Planning Commission held a public hearing to receive public testimony and other evidence regarding the Ordinance including, without limitation, information provided to the Planning Commission by city staff; and, adopted Resolution No. 2962 recommending that the City Council approve this Ordinance; On May 6, 2025, the City Council held a public hearing and considered the information provided by City staff and public testimony regarding this Ordinance; and J. This Ordinance and its findings are made based upon the entire administrative record including, without limitation, testimony and evidence presented to the City Council at its May 6, 2025, hearing and the staff report submitted by the Community Development Department. SECTION 2: Factual Findings and Conclusions. The City Council finds that adopting the proposed Ordinance would result in the following: A. Amend ESMC Chapter 15-32 (Development Impact Fees), Section 6 (Imposition of Fees; Automatic Adjustment) to require payment of development impact fees for residential and non-residential development projects at the time a Certificate of Occupancy is issued, or a Final Inspection is approved. SECTION 3: General Plan Findings. As required under Government Code § 65860, the ESMC amendments proposed by the Ordinance are consistent with the El Segundo General Plan as follows: A. The proposed Ordinance is consistent with the General Plan Economic Development Element in that it would remove governmental and other constraints to facilitate the diversification of El Segundo's economic base in order to improve stakeholders' quality of life. B. The proposed Ordinance is consistent with the General Plan Economic Development Element in that the amendments provide a supportive and ORDINANCE NO. 1673 Page 2 of 6 economically profitable environment as the foundation of a strong local business community. C. The proposed Ordinance is consistent with the General Plan Economic Development Element in that the amendments strengthen the partnership between the local government, the residential community, and El Segundo's business community. D. The proposed Ordinance is consistent with the General Plan Housing Element in that the amendments strive to remain cost -competitive in order to attract commercial and industrial development. SECTION 4: Zone Text Amendment Findings. In accordance with ESMC Chapter 15-27 (Amendments), and based on the findings set forth above, the proposed Ordinance is consistent with and necessary to carry out the purpose of the ESMC as follows: A. The proposed Ordinance is consistent with the General Plan in that the amendments would implement the goals, policies, and programs of the Economic Development Element. Implementation of the Economic Development Element would create a strong, healthy economic community in which all diverse stakeholders may benefit, without affecting the character of the existing small-town charm. B. The proposed Ordinance is necessary to serve the public health, safety, and general welfare in that it would implement the Economic Development Element, which includes programs, goals, and policies to retain and improve the economic base in the City. The proposed amendments would facilitate business development in the community by reducing financial barriers, thereby enhancing the City's fiscal sustainability. Strengthening the City's fiscal integrity will improve the quality of life for the stakeholders such as providing better quality of schools, police and fire protection, access to varied cultural and recreational activities, and other local government services. SECTION 5: Environmental Assessment. Based on the facts set forth in Section 2, the City Council finds that the zone text amendment is exempt from further review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines § 15061(b)(3)), because it consists only of minor revisions to existing zoning regulations and related procedures and does not have the potential for causing a significant effect on the environment. ORDINANCE NO. 1673 Page 3 of 6 SECTION 6; ESMC Chapter 15-32 (Impact Fees), Section 6 (Imposition of fees, Automatic adjustment) is amended as follows (deleted language is shown in +Fikethm unh and newly added text is underlined): 15-32-6: 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. 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 the following language in any document of development approval: All fees imposed pursuant to Title 15 Chapter 32 of the El Segundo Municipal Code must be paid to the City accordance with Government Code section 66007. D. The director of community development or the director of public works will collect impact fees at the following times, except as otherwise specified in Government Code section 66007: 1. Unless authorized under separate agreement or condition of approval, impact fees for any r ide,0i l-development will be collected at the time the City issues a gf p rat building permit a1 t - �r� i GGGUpaney w i er-ocea r t� 2. Under separate a reement or condition of approval, l=fees for residential development will be collected at the time the City approves a final inspection or issues a certificate of occupancy for each dwelling unit in the development. . Under separate agreement or condition of approval fees for non-residential development will be collected at the time the City approves a final inspection or issues a certificate of occupancy. 4. Notwithstanding (1)1-an4-(2), and 3 above, utility service connection fees will be collected at the time an application for service is received. E. Unless otherwise provided by council resolution, the impact fees established by this chapter will be automatically adjusted on an annual basis at the beginning of each fiscal year based on the average percentage change over the previous calendar year set forth in the construction price index for the Los Angeles metropolitan area. The first impact fee adjustment cannot be made before a minimum of ten (10) months after the effective date hereof. ORDINANCE NO. 1673 Page 4 of 6 SECTION 7: Construction. This Ordinance must be broadly construed to achieve the purposes stated in this Ordinance. It is the City Council's intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. SECTION 8: Enforceability. Repeal of any provision of the ESMC does 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 9: Validity of Previous Code Sections. If this entire Ordinance or its application is deemed invalid by a court of competent jurisdiction, any repeal or amendment of the ESMC or other city ordinance by this Ordinance will be rendered void and cause such previous ESMC provision or other the city ordinance to remain in full force and effect for all purposes. SECTION 10: Severability. 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 11: Recordation. The City Clerk, or designee, is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of El Segundo'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 12: This Ordinance will go into effect and be in full force and effect 30 days after its passage and adoption. PASSED AND ADOPTED this 20t" day of May, 2025. ATTESTWCityyy Susan T, APPR - S-TCY By: ------------ Mark D. Hensley, City Attorney Chris irrentel, Mayor ORDINANCE NO. 1673 Page 5 of 6 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Susan Truax, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 1673 was duly introduced by said City Council at a regular meeting held on the 6th day of May 2025, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the 20th day of May, 2025, and the same was so passed and adopted by the following vote: AYES. Mayor Pimentel, Mayor Pro Tern Baldino, Council Member Boyles, Council Member Giroux and Council Member Keldorf NOES: None ABSENT: None ABSTAIN: None WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this h day of May, 2025. r Su an T uax„ City Clerk of the City of El Segundo, California ORDINANCE NO. 1673 Page 6 of 6