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HomeMy WebLinkAbout33-Public Works . . . , . DRAFT . SBE00099-5/3259S/dc 11/28/89 0315 ORDINANCE NO. ORDINANCE OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER 15.73 TO THE SAN BERNARDINO MUNICIPAL CODE TO REQUIRE THE LEVY OF AN INFRASTRUCTURE DEVELOPMENT FEE FOR RIGHT-OF-WAY IMPROVEMENTS AND PUBLIC IMPROVEMENTS IN THE VERDEMONT AREA NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ORDAIN AS FOLLOWS: Section 1. Chapter 15.73 is hereby added to the San Bernardino Municipal Code to read as follows: .15.73.010 Findinas and Determinations The Mayor and Conunon Council hereby find and determine as follows: (a) The City of San Bernardino (the .City.) must provide for the acquisition, construction and installation of certain and related infrastructure Right-of-Way improvements (as hereinafter defined and as hereinafter referred to as the .Right-of-Way Improvements.) and certain other public improvements. (as hereinafter described and as hereinafter referred to as the .Public Improvements.) within the Verdemont Area of the City in order to maintain - 1 - 33 . . DRAFT . current levels of service if new development is to be accommodated without decreasing current levels of service; (b) It is in the interests of the present landowners within the Verdemont Area and the residents, both within the Verdemont Area and within the City generally, construction that the City causes the acquisition, and installation of the Right-of-Way Improvements and the Public Improvements wi thin the Verdemont Area; (c) The imposition of infrastructure development fees (the .Infrastructure Fees.) is one of the preferred methods of ensuring that development in the Verdemont Area . bares - a--proportionate share of the cost of capital facilities necessary to accommodate such development in order to effectively provide the quality and extent of infrastructure required within the Verdemont Area; (d) Development within the Verdemont Area will (i) generate increased traffic volumes necessitating the acquisition, construction and installation of the Right-of-Way Improvements and (ii) overburden the existing pUblic facilities requiring the acquisition, construction and installation of the Public Improvements; . - 2 - - - - - ... . . . . ~ "" "".. ....~.... ~ . (e) Revenues generated from the levy of the Infrastructure Fees will be used to facilitate the acquisition, construction and installation of the Right-of-Way Improvements and the Public Improvements which in turn will allow for the future development of property within the Verdemont Area by providing additional traffic flow capacity and other required public improvements; (f) The Infrastructure Fees established by Section 15.73.050 of this Chapter are derived from, and based upon, and do not exceed the costs of undertaking the acquisition, construction and installation of the Right-of-Way Improvements. . (g) It is anticipated that certain excess revenues may be generated through the levy of the Infrastructure Fees for the acquisition, construction and installation of the Right-of-Way Improvements, and to the extent such revenues are generated, such revenues as are in excess of the amount required for the acquisition, construction and installation of the Right-of-Way Improvements shall be used for the purposes of funding the acquisition, construction and installation and the Public Improvements as defined in Section 15.73. 030(e); provided, however, that if such excess revenues are not generated, then the Infrastructure Fees established by Section 15.73.050 will be increased in accordance with .' - 3 - - - ,.. . . . D [\. fJ..FI Section 15.73.050 in order to cause the funding of the acquisition, construction and installation and the Public Improvements; (h) That certain engineers report entitled -Engineers Report -- Right-of-Way Improvements -- Verdemont Area- (the -Engineers Report-) sets forth the scope and eztent of the Right-of-Way Improvements and the Public Improvements required in the Verdemont Area and sets forth a reasonable methodology and analysis for the determination of the impact of development on the need for, and costs of, acquisition, construction and installation of the . Right-of-Way Improvements and the Public Improvements in t~e '!e!demont Ar}l~i..-c_ .--.-:.:'.--?'- c:;~:#-- --_#-- (i) This Chapter shall apply only to that area of the City known as the Verdemont Area and is intended to assist in the continued development of the Verdemont Area; (j) The purpose of this Chapter is to regulate the use and development of land so as to assure that new development bears a proportionate share of the cost of capital ezpenditures necessary to provide Right-of-Way Improvements and Public Improvements within or for the benefit of the Verdemont Area; and . - 4 - . . D:-"\."\ ..'-/ ~~ r-;. if' iI . (k) The city has the authority to enact this Chapter pursuant to Section 66000, nus., of the California Government Code and Sections 40(z) and 40(aa) of the Charter of the City of San Bernardino. 15.73.020 Rules of Construction (a) The provisions of this Chapter shall be liberally construed so as to effectively carry out its purpose in the interest of the public health, safety and welfare. (b) For the purposes of administration and . enforcement of this Chapter, unless otherwise stated in this Chapter, the following rules of construction shall apply to the text of this Chapter: 1. In the case of any difference of meaning or implication between the text of this Chapter and any caption, illustration or summary table, the text shall control. 2. The word .shall. is always mandatory and not discretionary; the word .may. is permissive. 3. Words used in the present tense shall include the future tense; and words used in the . - 5 - . . D'~<A.~ · . singular number shall include plural the singular unless indicates to the contrary. the the plural, context and the clearly 4. The word "person" corporation, a association, or includes an partnership, an any other similar individual, a unincorporated entity. 5. The word "includes" shall not limit the term to the specific example but is intended to extend its meaning to all other instances or circumstances of like kind or character. . 15.73.030 Definitions (a) "Verdemont Area" is defined as that area of the city of San Bernardino delineated by the Verdemont Area Plan adopted by the Mayor and Common Counci 1 on November 17, 1986, excepting therefrom that area southwesterly of Kendall Drive, from the southerly boundary of the Verdemont Area Plan to Palm Avenue, and southwesterly of Route 1-215 Freeway, from Palm Avenue to the northerly boundary of the Verdemont Area Plan and all as more fully described in the Engineer's Report. . - 6 - . . b,.... t.I'~ ...-.&- III . (b) "Development" shall mean every project for which either (i) a building permit is required, except that it shall not include those projects increasing either the size or value of a single family residence by twenty-five percent (25\) or less, or (ii) a permit is required in connection with the installation of a mobile home. (c) A "Fee Payer" shall mean a person commencing a land development activity which generates traffic, necessi tates the construction of additional publicly owned facilities or improvements and which requires the issuance of a building permit or a permit for the installation of a mobile home. . - -(Q) "Right-of-Way Improvements" shall mean the acquisition, construction and installation of full width streets including, full-width paving, curbs and gutters, sidewalks, street lights, sewer mains , storm drains, catch basins and water mains in the following locations and all as more fully described in the Engineer's Report. Walnut Avenue Irvington to Belmont Belmont to Ohio (portions) Olive Avenue Verdemont Avenue to Ohio.' Ohio to Belmont (portions) Belmont to Irvington Magnolia Avenue Verdemont Avenue to Little League Drive . - 7 - . . e Little League Drive Irvington to Verdemont DRAFT Meyers Road Little League Drive to New Section New Section to Cable Canyon Irvington pine to Olive (portions) Olive to Magnolia Belmont Avenue pine to Olive (limited portions) Olive to Palm (portions) Palm to just past Little League Drive Ohio Avenue Pine to Palm (portions) Palm to west of Little League Drive Verdemont Avenue Little League Drive to Palm Avenue Palm to pine (portions) e Frontage Roage Palm to City Limits (Devore) Cable Canyon 'Road Meyers Road to Frontage Road (new roadway) (e) -Public Improvements- shall mean the acquisition, construction and installation of drainage facilities, park facilities, fire station facilities and landscaping, 'all as more fully described in the Engineer' s Report. (f) -Engineer's Report- shall mean that certain Engineer's Report prepared for the Verdemont Area dated November 17, 1989. (g) -Equivalent Dwelling Unit- shall refer to a numerical value designation for residentially zoned e, - 8 - . . D~~;,~ ,,:'.\ .~L;~" , ~.,. Jr-."... ~ . property whereby one (1) Equivalent Dwelling Unit is equivalent to a single residential unit whether such unit be a single family attached or detached unit, or multi-family unit with a multi-family structure or a mobile home. For land uses other than residential uses, the Equivalent Dwelling Unit shall equal the density of residential units that could be built per acre as determined by the zoning of the immediately adjacent or, if not immediately adjacent, the most proximate residentially zoned property. 15.73.040 Persons Subiect to Infrastructure En . r-:.---- . ....c _ ___ . ___I- Any~li~on-.'WhO seeks to develop land within "the Verdemont Area by applying for: a building permit; an extension of a building permit; a permit for the mobile home installation; or an extension of a permit for mobile home installation to make improvements to land which will generate additional traffic or increase the need for public facilities is hereby required to pay an Infrastructure Fee in the manner set forth in this Chapter. 15.73.050 Infrastructure Fee The Infrastructure Fee for any given parcel of property shall be determined by ascertaining the land use . - 9 - - - - - . . f.J~"'~';''''' ....,..._. ~ . ~ /,'--..\ . -., '.-." '" \, . category of the parcel and multiplying the amount of the Infrastructure Fee by the number of Equivalent Dwelling Units allocated to such land use category. The initial amount of the Infrastructure Fee shall be $7,368.69 per Equivalent Dwelling Unit and shall be sUbject to increase pursuant to the terms of any subsequent resolutions to be adopted by the Mayor and Common Council which resolutions shall provide for increases to the Infrastructure Fee in order to cover any administrative and carrying costs incurred in connection with the issuance of bonds required in order to finance the acquisition, construction and installation of all or any portion of the Right-of-Way Improvements and/or the Public Improvements. . It is anticipated that there may be certain ezcess revenues generated in connection with the levy of the Infrastructure Fee in the initial dollar amounts and to the eztent any such ezcess revenues do ezist, said ezcess revenues will be applied to fund the costs of the acquisition, construction and installation of the Public Improvements. To the eztent said ezcess revenues -do not ezist, the Infrastructure Fee in the dollar amount as initially established. may be subject to additional increases by subsequent resolutions of the Mayor and Common Council in order to cause the funding of the acquisition, construction and installation of the Public Improvements. . - 10 - . . . The above-referenced subsequent DP AFT resolutions a~! the dollar amount of the Infrastructure Fee initially established pursuant to this Chapter shall be reviewed and amended at least annually or more often as may be necessary under the circumstances to reflect any increases in costs. (a) For applications for an extension of a building permit or an extension of a permit for mobile home installation, the amount of the fee is the difference between the fee then applicable and any amounts previously paid in connection with the application for the initial permit. (b) In the case of change of use, . rehabilitation, expansion or modification of an existing use which requires the issuance of a building permit or permit for mobile home installation, the Infrastructure Fee shall be based upon the net positive increase in the demands placed upon the Right-of-Way Improvements and the Public Improvements by the new or expanded use compared to the previous use or level of use. 15.73.060 Voluntary PreDavrnent At the option of the Fee Payer, the dollar amount of the Infrastructure Fee established pursuant to this Chapter for the acquisition, construction and installation . - 11 - - - - ....-- . . r- "~ : ' _. . i .'" '"-' ~ >.. i-i.. r . inunediately . of the Right-of-Way Improvements may be paid upon the effective date of this Chapter and for a period of two (2) weeks thereafter. In the event a Fee Payer pays the Infrastructure Fee during such period, the Fee Payer shall only be required to pay the Infrastructure Fee established in this Chapter for the Right-of-Way Improvements and as set forth in Section 15.73.050 and will not be required to pay any increases thereto as the result of escalations in construction costs, interest or carrying charges which may be required to increase the dollar amount of the Infrastructure Fee for the purposes of causing the issuance of bonds in order to provide funding for the acquisition, construction and installation of the Right-of-way Improvements within the Verdemont Area. Such . volunt1lry?repayment of the initial Infrastructure Fee o,r any subsequent payment of the Infrastructure Fee in such dollar amount as may be established by resolution of the Mayor and Conunon Council for the Right-of-Way Improvements will not waive, modify or release the Fee Payer's obligation to pay, to the extent permitted by law, any subsequent increase in the Infrastructure Fee which is attributable solely to causing the funding of the Public Improvements nor shall such Fee Payer be relieved of paying any other benefit assessment or special tax that may be legally assessed or levied against property of the Fee Payer and any successors in interest in such property within the Verdemont Area for the Public Improvements; . - 12 - - ... . . Dr. ,. ,..--. .. r~F\~- ~ . provided, however, that to the extent any revenues generated in connection with a Fee Payer' s prepayment of the initial Infrastructure Fee are used for the purposes of funding the costs of the Public Improvements either in whole or in part, such Fee Payer will be credited for such payments of a portion of the costs of the Public Improvements in proportion to the amount of the initial Infrastructure Fee actually paid which is attributable to the Public Improvement costs. 15.73.070 Time of PaYment (a) Except as otherwise provided in . Section 15.73.060 hereof, each applicant for a commercial or industrial building permit shall pay to the city the then applicable Infrastructure Fee, as initially established pursuant to this Chapter and adjusted pursuant to any subsequent resolutions of the City as more fully described in Section 15.73.050 hereof, upon the submission to the City of an application for a commercial or industrial building permit, which application is complete and in a form acceptable to the City. Each applicant for a residential building permit who submits an application, which application is complete and in the form acceptable to the City, shall pay to the City the then applicable Infrastructure Fee, as initially established pursuant to this Chapter and adjusted pursuant to any subsequent .' - 13 - . . ~''\ ,::~,:. r" \.'" 'C ..,.. i! described in . resolutions of the City as more fully Section 15.73.060 hereof. for all residential units sUbject to a building permit upon the earlier of the following dates: (i) upon the date of final inspection of the first dwelling unit completed in the residential development to which the building permit is applicable. or (ii) upon the date a certificate of occupancy is issued for the first dwelling unit completed in the residential development to which the building permit is applicable. In the event the City accepts any payment of Infrastructure Fees in connection with the submission of a building permit application. which application is incomplete or not in a form satisfactory to the City. all payments made in connection with such application shall be returned to the . ','_ _. --_ r~-.-- ~aPplicant and:8~licant shall be required to sUbmiT-; complete and acceptable application. and. at the time of such submission. shall pay any then applicable Infrastructure Fees. Notwithstanding any provision herein to the contrary. the City. by official action of the Mayor and Common Council. may require the payment of applicable Infrastructure Fees for residential units prior to the approval of a final tract or parcel map applicable to residential development if one of the following conditions are met: (a) the Planning Director of the City has determined that the applicable Infrastructure Fee wi 11 be collected from the subdivider for public improvements or facilities for which an account has been established and . - 14 - . . . funds have been appropriated, b l_.li. and for which the Ci tD~ ,"' .. I adopted a proposed construction schedule or plan, or (b) the applicable Infrastructure Fee will reimburse the City for expenditures previously made by the City. All applicants for permits for the installation of mobile homes will be sUbject to the procedures applicable to residential developments set forth hereinabove. (b) All funds collected shall be promptly identified as Right-of-Way/Public Improvement Infrastructure Fees and promptly transferred for deposit in the appropriate Right-of-Way/Public Improvement Infrastructure Fee Fund to be held in a separate account and, together with interest earnings thereon, used solely . for the purposes specified in this Chapter. 15,73.080 Establishment of Infrastructure Fee Fund There is hereby established a Right-of-Way/Public Improvement Infrastructure Fee Fund. The funds withdrawn from this account must be used in accordance with the provisions of Section 15.73.090 of this Chapter. . - 15 - - - - - - . . . . . 15.73.090 Use of Funds D'RA.FT (a) Funds collected from the Infrastructure Fees shall be used for the purpose of causing the acquisition, construction and installation of the Right-of-Way Improvements and/or Public Improvements within the Verdemont Area, as more specifically described in the Engineer's Report. (b) No funds collected pursuant to this Chapter shall be used for periodic or routine maintenance. . (c) Funds may also be used to pay debt service on bonds or similar debt instruments issued in order to provide financing for the acquisition, construction and installation of the Right-of-Way Improvements and/or the Public Improvements for which the Infrastructure Fee may be expended. 15.73.100 Refunds (a) Any funds not expended or encumbered by the end of the calendar quarter immediately following six years from the date the Infrastructu~e Fee was paid shall, upon application of the then current landowner, be returned to such landowner with accrued interest thereon, provided the landowner submits an application for refund to the City . - 16 - . . r--'" )."-.~. ,_'". F'6'~ ~ ;,. i .' ,,. ~ ~... .' .... I .:.. I. . Finance Officer within one hundred eighty (180) days of the expiration of the six year period. 15.73.110 Penalties A violation of this Chapter shall be prosecuted in the same manner as misdemeanors are prosecuted and upon conviction the violator shall be punishable according to law; however, in addition to or in lieu of any criminal prosecution, the City shall have the power to sue in civil court to enforce the provisions of this Chapter. 15.73.120 Severabilitv . - - If any Section, phrase, sentence or portion of this Chapter is for any reason held invalid or unconstitutional by any court of competent jurisdiction; such portion or portions hereof shall be deemed to be a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions hereof. 15.73.130 Other Fees Notwithstanding the payment of Infrastructure Fees as set forth in this Chapter, any developer or Fee Payer shall be responsible for the payment of any . - 17 - . . . . C'" A,..... . I . ~ ., : ~\~ r t . applicable installation fees, sewer connection fees, water acquisition charges or other fees or charges levied by the city and all other public bodies in connection with the development of property with the Verdemont Area, and such developer or Fee Payer shall either (i) provide for the acquisi tion, construction and installation of any and all other pUblic improvements required by the City of such developer or Fee Payer as a condition to approval of' any development which are in addition to both (a) the Right-of-Way Improvements to be funded by the Infrastructure Fees as established by this Chapter in the initial dollar amount and (b) the Public Improvements to be funded by subsequent increases to the Infrastructure Fees or as established, by this Chapter in the initial dollar . amount (ii) pay any other on or off-site improvement fees, assessments or special taxes as may be levied by the City as a condition to the approval of any development in lieu of the actual acquisition, construction or installation of public improvements as set forth in (i) above. Unless a developer or Fee Payer has provided for the payment of Infrastructure Fees in an amount to provide for the acquisition, construction and installation of the Right-of-Way Improvements and the Public Improvements, plus any financing costs if applicable, or has constructed a proportionate share of the Right-of-Way Improvements and the Public Improvements, such developer or Fee Payer shall not be relieved from the Obligation to participate in any .' - 18 - I . . . . . I...,. ,,: ',~ .' benefi t assessment district or special tax district established for the purpose of funding that portion of the Right-of-Way Improvements and/or the Public Improvements not covered by the Infrastructure Fees as may have been previously paid by a developer or Fee Payer.- Section 2. The provisions of this Ordinance shall be effective thirty (30) days from the date of adoption of this Ordinance. The City Clerk shall transmit a copy of this Ordinance to for pUblication as required by law and in accordance with established City procedures. I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and Common Council of the City of San.~Bernardino r-:.-.-- "-rt.~..:?-~-o~';-r. meeting thereof, held on the day of 1989, by the , following vote, to wit: AYES: Council Members NAYS: ABSENT: City Clerk - 19 - . . . . . . . L"""'" r'~~. . . ~'..i';"'_' The foregoing Ordinance is hereby approved this day of , 1989. Mayor of the City of San Bernardino Approved as to form and legal content: By: City Attorney STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss. CITY OF SAN BERNARDINO ) and for foregoing is the City of and attached a full, true I, SHAUNA CLARK, City Clerk in San Bernardino, DO HEREBY CERTIFY that the copy of San Bernardino City Ordinance No. and correct copy of that now on file in this office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Bernardino this day of , 1989. City Clerk - 20 - '. . 9 10 11 12 13 14 . 15 16 17 18 19 20 21 22 23 24 25 26 . 9/21/89 - . . 1 2 3 4 5 6 7 8 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO ADOPTING THE VERDEMONT AREA PUBLIC WORKS INFRASTRUCTURE FINANCING PLAN. RECITALS WHEREAS, the Verdemont Area is experiencing a rapid rate of development; and WHEREAS, the existing public works infrastructure system was installed many years ago to serve the few low density residential units in the area; and WHEREAS, the existing streets are not paved to the planned ultimate width or grade, and are not improved with curbs and gutters, sidewalk, street lights, landscaping, sewer and water service; and WHEREAS, the existing public works infrastructure system is not adequate to accommodate the ever increasing volumes of pedestrian and vehicular traffic that are generated by the new developments; and WHEREAS, developers are hampered by the absence of fully improved streets, which necessitate conditions of approval that dictate off-site improvements to provide the second means of dedicated and paved emergency acces_s and to provide water and sewer service to their developments; and WHEREAS, the absence of a fully improved street system is an impediment to the marketing activities for the new residential units; and WHEREAS, it is imperative that an acceptable plan be 27 28 adopted to provide the necessary financing to construct a complete system of public works infrastructure in the Verdemont '-w- 33 ~ . . . 9/21/89 ~ - - ,- . . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Area; and WHEREAS, an Engineering Study has been prepared to identify the required public works infrastructure improvements and determine the amount of fee for the development rights to provide the necessary revenue to finance the identified improvements. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: SECTION 1. That the Verdemont Area Public Works Infrastructure Financing Plan, a copy of which is attached hereto, marked Exhibit "A" and incorporated herein a fully as though set forth at length herein, is hereby approved and adopted. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the ____day of , 1989, by the following vote, to-wit: AYES: Council Members NAYS: ABSENT: City Clerk The foregoing resolution is hereby approved this __day of , 1989. Approved as to form and legal content: W. R. Holcomb, Mayor City of San Bernardino 27 James F. Penman City Attorney 28 By - 2 - -- , . . EXHIBIT "An CITY OF SAN BERNARDINO VERDEMONT AREA PUBLIC WORKS INFRASTRUCTURE FINANCING PLAN BACltGROUND -- I The Verdemont Area is experiencing a rapid rate of development. The existing public works infrastructure system was installed. many years ago to serve the small number of low density resi- dential units in the area. The existing streets are not paved to the planned ultimate width or grade, and are not improved I~ith curbs and gutters, sidewalks, street lights, landscaping, sewer and water service. The existing infrastructure system is deemed not adequate to accommodate the ever increasing volumes of pedestrian and vehicular traffic that are generated by new developments. . Development in the Verdemont Area is hampered by the absence of a fully improved street system, which necessitates conditions of approval that dictate construction of off-site improvements to provide the second means of dedicated and paved access, and to obtain water and sewer service. Construction of an adequate infrastructure system is deemed essential for the continuation of orderly growth in the Verdemont Area. DESCRIPTION OF NEEDED IMPROVEMENTS -- An Engineering Study has been conducted to identify the improvements required to provide the desired infrastructure system. This study has identified the sections of the major streets (basically those on the quarter mile grid) that need to be improved.. Improvements will consist of full width paving, curbs and gutter, sidewalks, street lights, sewer mains and water mains. Provisions have been made to complete landscaping, parks, a fire station and improve drainage systems in the designated area with any funds collected but not expended on the basic designated infrastructure. Also, any investment or interest income earned by the development rights fund may be used for this additional work. The Mayor and Common Council shall set the priority of these items upon the final determination of the available balance after the basic infrastructure has been com- pleted. . The total estimated cost for these improvements is $22.9 million. Based upon densities authorized by the General Plan, it is esti- mated that an additional 3100 equivalent dwelling units can be constructed in the Verdemont Area. It is envisioned that the needed improvements will necessarily be constructed in phases, as required to serve developments. r . I . . ~ ~- . . The sections of streets that are in need of improvements are !lhown on the map attached as Appendi:: "I", and further described in the Engineer's Report. SALE OP DBVELOPMER'l' RIGHTS In order to generate funds to "up front" the cost of constructing the necessary improvements, a plan to sell Development Rights will be implemented. Under this plan, a Development Right will have to be purchased before a building permit is issued. An equivalent dwelling unit will be used for non-residential developments. There are some basic premises of this program which are as follows: 1. Future developers must expect to pay for infrastructure im- provements in advance. 2. Construction of these improvements is necessary to allow for development to continue to occur. 3. Deferring the purchase of Development Rights will only result in substantially higher costs in the future for these improvements. 4. Development Rights will initially be offered to property owners, but any un-sold rights will be made available to the general public. 5. The City of San Bernardino will be responsible for construction of needed improvements, on the streets identi- fied on the attached map. 6. The purchase of Development Rights will not obviate the pay- ment of normal development fees, such as sewer plant capacity fees, sewer connection fees, park development fees, water acquisition fees, etc. The sale of'Development Rights will be limited to a total number of 3,100, which is the theoretical number of equivalent dwelling units allowed by the General Plan. Development Rights will be limited to the number of equivalent dwelling units allowed by the General Plan for each parcel. A refund will be paid, at the purchase price, for any Development Rights not actually used by a development. Development Rights sold to members of the general public will not be assigned to specific parcels, but only up to the number of equivalent dwelling units allowed by the General Plan for this area. The City retains the right to recall all Development Rights sold to members of the general public at any time. Payment will be made to the purchaser, at the rate in effect at the time of re- call. Development Rights shall be recalled starting with those most recently sold. - 2 - r . . . ~ . . // PROCEDURE TO PURCHASE DEVELOPMENT RIGHTS -- The procedure to purchase Development Rights shall be one of the following: 1. Submittal of an Application and Purchase Agreement, check, cashier's check, or Ip.tter of credit, in the the number of equivalent dwelling units times currently in effect. certified amount of the rate 2. Submittal of an Application and Purchase Agreement, certifi~d check, cashier's check, or letter of credit, in the amount of 30% of the number of equivalent dwelling units times the rate currently in effect. The balance of 70% will be paid over a five year period, and at a 12% interest rate on the unpaid balance as provided in the Purchase Agreement. These items will be ~ubmitted to the Department of Public Works. Equivalent dwelling units for non-residential developments will be based upon the number of lots that could be created on the parcel, with the density for adjoining parcels allowed by the General Plan. The City may, at its sole option, will construct or enter into an Agreement with a developer for reimbursement of the cost incurred for constructing improvements on the stre~ts shown on the attached plan as having inadequate infrastructure. Letters of credit shall be on the attached form or approved equal. RATE SCBEDOLE The rate schedule for the purchase of Development Rights shall be as follows: Effective Date Adoption 1-8-91 1-8-92 1-8-93 1-8-94 Rate Schedule $ 7,369.00 8,474.00 9,745.00 10,720.00 11,792.00 The above schedule reflects an increase of approximately 15% for the first 3 years, and approximately 10% for the next 2 years. The ~ale of Development Rights will be of the Mayor and Common Council, Department of Public Works. under the policy direction and administered by the Development Rights may only be resold to the City of San Bernardino. Any holder of Development Rights may elect to resell them at any time to the City of San Bernardino, subject to approval of the Mayor and Common Council, for the rate currently in effect. - 3 - ~. . . , INCEN'l'IVES In order developers advantages TO DEVELOPERS to be successful, this plan must that it provides distinct advantages. are: demonstrate to Some of these 1. Avoid annual escalation in cost. 2. Guaranteed availability of water and sewer mains. 3. Avoidance of need to construct transition sections on through streets. 4. Guarantee two means of dedicated and paved access roads. 5. Improve response time for emergency vehicles. I 6. Enhance marketability of new houses by improved appearance of area. 7. Ensure continued normal processing for developments. ANTICIPATED SCHEDULE-- The anticipated schedule for implementation of this plan is as follows: Activity Hold Public Hearing Date 11-06-89 . First Reading of Ordinance & Adoption of Resolution 11-06-89 Prepare Information Materials & Mail Notices to Property Owners 12-04-89 12-04-89 01-01-90 01-08-90 Second Reading of Ordinance Ordinance in Effect Start. Sale of Development Rights SUPPORTING DOCUMEH'l's-- Copies of the application, purchase agreement, sample letter of credit, assignment form, and log of purchase agreements, are attached for reference. - 4 - . . . - ~ - " ~." ~i . . I I ; I I c · . I ~ . \I ! :: i . i .. & .. 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CITY OF SAN BERNARDINO California STAFF REPORT TO: Mayor and Common Council FROM: City Staff SUBJECT: Adoption of Urgency Ordinance of the City of San Bernardino, California Establishing the Levy of an Infrastructure Fee to Finance the Costs of Right-of-Way Improvements and Public Improvements in the Verdemont Area Adoption of Resolution of the City of San Bernardino Setting the Amount of the Infrastructure Fee DATE: December 4, 1989 BACKGROUND City Staff has determined that the Verdemont area of the City of San Bernardino (the "City") requires the construction and installation of additional public infrastructure in order to allow further private development within the area. The existing infrastructure system is inadequate to serve any additional development, and accordingly, development should not continue without the provision of additional public facilities and improvements. The City is presently considering an amendment to the San Bernardino Municipal Code to establish a permanent program for the levy of infrastructure fees to provide revenues to fund the public improvements which would be necessitated by any proposed private development within the area. Until such amendment becomes effective, City Staff proposes that the City adopt an urgency measure in order to ensure the provision of funding prior to the commencement of any additional development. Such action is necessary in order to preserve the health and welfare of the community and in such circumstances, is authorized pursuant to Section 65962(c) of the California Government Code. ff4J, . . Page 2 ANALYSIS (a) Ur2encv Ordinance The Urgency Ordinance referenced above authorizes the levy of an infrastructure fee in connection with any new development in order to provide revenues to fund the costs of certain public improvements. The public improvements are divided into two (2) categories. The first are designated as "Right-of-Way Improvements" and include the acquisition, construction and installation of full-width street improvements throughout the area including sidewalks, curbs, gutters, parking, street lights, water mains and sewer mains. The second category of public improvements are designated as the "Public Improvements" and include the acquisition, construction and installation of fire facilities, park facilities, drainage facilities and landscaping. The Right-of-Way Improvements and the Public Improvements are more specifically described in that certain Engineer's Report prepared in conjunction herewith. In addition to authorizing the levy of the infrastructure fees, the Urgency Ordinance further provides for a voluntary prepayment period whereby a developer or fee payer for a specific parcel of property may pay the fee within thirty (30) days of the adoption of the Urgency Ordinance and thereafter be exempt from any subsequent increases to such fee which are attributable to increased costs of the Right-of-Way Improvements or financing charges incurred in connection with the financing of the Right-of-Way Improvements. (b) Resolution Settin2 Fees The Resolution sets the initial infrastructure fee and provides for subsequent increases in the infrastructure fee. The initial infrastructure fee shall be in the amount of Seven Thousand Three Hundred Sixty-Eight Dollars and Sixty-Nine Cents ($7,386.69) for a single family dwelling unit or an equivalent dwelling unit. The first moneys generated through the levy of the infrastructure fee will provide funding for the provision of the Right-of-Way Improvements only. However, to the extent the levy of the initial infrastructure fee generates additional revenues, such additional revenues will be used for the construction or installation of the Public Improvements. To the extent excess revenues are not generated through the levy of the initial infrastructure fee, the infrastructure fee will be subject to increases pursuant to subsequent resolutions, duly adopted by the Mayor and Common Council of the City of San Bernardino, which resolutions shall increase the infrastructure fee in order to cover the costs of the Public Improvements and to cover any additional financing charges which may be incurred in financing the Right-of-Way Improvements and/or the Public Improvements. . . Page 3 The Resolution further provides that any developer or fee payer may prepay only a portion of the initial infrastructure fee in an amount equal to thirty percent (30%) of the infrastructure fee attributable to such fee payer or developer. In such eases, the fee payer or developer shall execute an agreement with the City to pay the remaining balance of the infrastructure fee, with twelve percent (12%) interest thereon, at the earlier of (i) the time the infrastructure fee would otherwise be due under the terms of the Urgency Ordinance or (ii) five (5) years from the date of adoption of the Resolution. CONCLUSIONS AND RECOMMENDATIONS City Staff recommends that the Mayor and Common Council adopt the attached Urgency Ordinance and the attached Resolution. SBE00099-6/3262S