ORDINANCE 1389ORDINANCE NO. 1 ❑ao
AN ORDINANCE ADDING A NEW CHAPTER 27A, ENTITLED
"DEVELOPMENT IMPACT FEES" TO TITLE 15 OF THE EL
SEGUNDO MUNICIPAL CODE FOR THE PURPOSE OF
IMPOSING FEES ON APPLICANTS SEEKING TO CONSTRUCT
DEVELOPMENT PROJECTS.
The City Council of the city of El Segundo 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 Policy Objective number LU7 -1 in the Land Use Element of the
General Plan for the City of El Segundo states that it is the City's
objective to provide the highest and most efficient level of public
services and public infrastructure financially possible,
C Policy Objective number 1-1-17 -1 in the Land Use Element of the
General Plan for the City of El Segundo states that the City should
provide adequate maintenance for all public infrastructure facilities,
D Impact fees are desirable and necessary for the City to more fully
pay for the public costs of new growth and development,
E 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,
F 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 at (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 41h
854 This Ordinance is intended to, and does, comply with such
constitutional limitations on the City's police powers,
G The Mitigation Fee Act (Government Code §§ 66000, et seq )
enables and encourages the City to enact appropriate development
impact fees,
H The imposition of impact fees is one of the preferred methods of
ensuring that development bears a proportionate share of the cost
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of capital facilities necessary to accommodate such development
This must be done in order to promote and protect the public
health, safety and welfare,
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,
J 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,
K 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,
The report entitled `Traffic Impact Fee Study Update" dated
November 2, 2005 (and as may be revised from time to time),
prepared by MuniFinancial, 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
M After careful consideration, including a review of the documentary
and testimonial evidence submitted during a public hearing on
November 15, 2005, 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
N 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 27A, entitled "Development Impact Fees," and
consisting of Sections 15 -27A -1 to 15- 27A -15, is added to Title 15 of the El
Segundo Municipal Code ( "ESMC ") to read as follows
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Chapter 27A
DEVELOPMENT IMPACT FEES
SECTION:
15 -27A -1
PURPOSE.
15 -27A -2
APPLICABILITY.
15 -27A -3
EXEMPTIONS.
15 -27A -4
DEFINITIONS.
15 -27A -5
NOTICE AND HEARING REQUIREMENTS.
15 -27A -6
IMPOSITION OF FEES/AUTOMATIC ADJUSTMENT.
15 -27A -7
IMPACT FEE ACCOUNTS.
15 -27A -8
USE OF IMPACT FEE PROCEEDS.
15 -27A -9
REFUNDS.
15- 27A -10
PROTESTS, APPEALS, AND AUDITS.
15- 27A -11
AMENDMENT PROCEDURES.
15- 27A -12
CREDITS.
15- 27A -13
CONFLICTS.
15- 27A -1: PURPOSE: This Ordinance 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 applicants for such
development projects pay their fair share of the costs of providing such public
services and public facilities Accordingly, the amount of each impact fee is
calculated based upon the gross square footage of nonresidential development,
number of residential dwelling units, type or density or intensity of use, vehicle
trip generation, or other appropriate methodology which ensures that the fee is
roughly proportional to the impacts of new development on public facilities The
City assumes responsibility for and will pay for with general city revenues all
public facility needs for existing development
15- 27A -2: 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 Law Enforcement Facilities, Vehicles, and Equipment,
B Fire Suppression Facilities, Vehicles, and Equipment,
C General Facilities, Vehicles, and Equipment,
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D Community Library Facilities and Collections,
E Public Use (Community Centers) Facilities,
F Parks /Open Space and Recreation Facilities, and
G Road Project Construction, Right -of -Way Acquisition, and
Engineering
15- 27A -3: 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 Fees to mitigate impacts on the environment, or
G Fees imposed, levied or collected by other governmental agencies
including subdivisions of the state and federal government
15- 27A-4: 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 storage,
treatment or distribution of water, for the collection, treatment,
reclamation or disposal of sewage, 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,
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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
approximate location, size, time of availability and 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 The list must describe the approximate location, size,
time of availability and estimated cost of each capital improvement
to be funded from a particular impact fee account
E "Collection" means the point in time at which the impact fee is
actually paid over to the City
F "Commitment" means earmarking impact fees to fund or partially
fund capital improvements serving new development projects
G "New development or development project" means and includes
any project undertaken for the purpose of development, including
without limitation a project involving the permit issuance for
construction, reconstruction, or change of use, but not a project
involving permit issuance 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
H "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.
"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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J "Impose" means to determine that a particular development project
is subject to the collection of impact fees as a condition of
development approval
K "Nonresidential development project" means all development other
than residential development projects
L 'Residential development project" means any development
undertaken to create a new dwelling unit or units
15- 27A -5: 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
15- 27A -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,
budding 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 27A of the El
Segundo Municipal Code must be paid to the City before this
project is approved "
D The Director of Planning and Building Safety or the Director of
Public Works 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
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E Unless otherwise revised, 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 of the ordinance adding
this chapter to the code
15- 27A -7: 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
15- 27A -8: 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 maybe 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
15- 27A -9: 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 the development project or projects,
provided that the then - current owner submits an application for a
refund to the City within one hundred eighty (180) days before the
five (5) year period expires
B If fees in any impact fee account are unexpended or uncommitted,
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starting with the fifth (5th) fiscal year after the first deposit into the
account or fund, and every subsequent five (5) 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)
15- 27A -10: 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 )
15- 27A -11: AMENDMENT PROCEDURES. At least once each year, 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
15- 27A -12: 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 Director of Planning and Building Safety or the Director of
Public Works 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
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developer contribution In no event, 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
15- 27A -13: 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 Repeal of any provision of the ESMC, 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 4 The 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 5 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 6 The City Clerk 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 fifteen (15) days after the passage and adoption of this
Ordinance, cause it to be published or posted in accordance with California law
SECTION 7 This Ordinance will take effect on the 31st day following its final
passage and adoption
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PASSED AND ADOPTED this 6th day of yecember, 2005
ATTEST
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APPROVED AS TO FORM
Mark D Hensle ity Attorney
By-
Karl H Berger, Assistant CAor=ne
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ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO 1
I, Cindy Mortesen, 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 1389 was duly introduced by said City
Council at a regular meeting held on the 15th day of November, 2005, 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 6th day of December, 2005, and the same was so passed and
adopted by the following vote
AYES McDowell, Gaines, Boulgandes, Busch, Jacobson
NOES None
ABSENT None
ABSTAIN None
Lz v'" " r
Cindy M6rtesen, City Jerk