O2471City Council Meeting: October 14, 2014 Santa Monica, California
ORDINANCE NUMBER 2471 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
'SANTA MONICA ADDING CHAPTER 9.75 TO THE SANTA MONICA MUNICIPAL
CODE ESTABLISHING THE PARKS AND RECREATION DEVELOPMENT IMPACT
FEE PROGRAM, THE PARKS AND RECREATION DEVELOPMENT IMPACT FEES,
AND ESTABLISHING AN ADJUSTMENT AND WAIVER PROVISION
WHEREAS, approximately 89,000 people live in the City, on weekdays there are
about 300,000 present in the City, and on weekends and holidays the number of
persons in the City soars to between 500,000 and 1 million; and
and
WHEREAS, new development will continue to occur in the City of Santa Monica;
WHEREAS, increased population due to this new development will place
additional burdens on the city -wide community and recreation facilities; and
WHEREAS, to maintain a similar level of service to the population, new facilities
are required; and
WHEREAS, the City has adopted an Open Space Element of its General Plan
and a Parks and Recreation Master Plan (Master Plan) to establish a long -range vision
for the future development of parks and open space; and
WHEREAS, the Master Plan states that everyone who lives, works in, and visits
the City benefits from the parks, beach, recreational facilities, and associated amenities,
and funding should come from all parks and recreational facilities users to the extent
possible; and
WHEREAS, objectives of the Open Space Element include developing,
expanding and maintaining a diversified and balanced system of high - quality open
space; and
WHEREAS, the Open Space Element calls for heightening the sense of nature in
the City, including maintaining and expanding the community forest and promoting
biodiversity in and expanding city gardens; and
WHEREAS, Open Space Element Policy 1.4 states that opportunities should be
provided for the enjoyment of open space within every Santa Monica neighborhood; and
WHEREAS, Open Space Element Policy 9.1 calls for increasing physical access
to parks and open spaces, particularly for youth and persons with disabilities; and
WHEREAS, Chapter 3.5 of the Land Use and Circulation Element ( "LUCE ")
complements the objectives, goals, and policies of the Open Space Element and Master
Plan; and
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WHEREAS, LUCE Goal CE1 calls for the expansion of the amount, quality,
diversity, interconnectivity of parks, open spaces and recreational facilities throughout
the City; and
WHEREAS, these planning documents reflect the City's commitment to parks
and recreation for its citizens; and
WHEREAS, to implement these policies, the City intends to require every person
who develops or redevelops land in the City to mitigate the impacts of such
development or redevelopment by paying fees that will be used to develop parks -and
recreation facilities; and
WHEREAS, a number of existing municipal code sections imposing fees on
development for parks improvements are antiquated and no longer reflect the needs of
the community; and
WHEREAS, a Parks and Recreation Development Impact Fee Study was
prepared by Economic and Planning Systems, Inc. in August 2013 to analyze the
relationship between new development in the City, the increased demand for and use of
parks and recreation facilities, and the amount of fee revenue necessary to fund new
parks and recreation facilities in response to the increased demand ( "Nexus Study ");
and
WHEREAS, the Nexus Study used the standard -based method to calculate the
fees to maintain the current level of service, i.e., the ratio of the value of existing
facilities divided by the current population to arrive at the per capita cost; and
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WHEREAS, under this approach, the current levels for the provision of parks and
recreation facilities and parkland by the City were used as the basis for determining the
fair share contribution of new development; and
WHEREAS, the maximum, supportable parks and recreation fee schedule was
based on a parks and recreation capital facilities cost estimate derived by applying the
proportionate increase in service population associated with new development to the
existing service standard /value of parks and recreation capital facilities; and
WHEREAS, these fees will be used for a broad range of parks and recreation
facilities investments, including the acquisition of land for parks, the improvement of
existing and new parkland, and development of new parks and recreation facilities; and
WHEREAS, the amount of fees collected pursuant to this Ordinance is limited to
the cost of these public facilities attributable to new development and the amount of
these fees shall not include the cost of facilities attributable to demand generated by
existing development; and
WHEREAS, other sources of City revenue, including tax revenue will be used for
many public purposes and will not be sufficient to offset the burdens on parks and
recreation facilities created by new development.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 9.75 is hereby added to the Santa Monica Municipal Code
to read as follows:
S
Chapter 9.75
Parks and Recreation Development Impact Fee
Program
9.75.010 Findings and Purpose.
(a) The purpose of this Chapter is to implement the goals,
objectives and policies of the City of Santa Monica's Open Space Element
and Parks and Recreation Master Plan when new development is
constructed within the City limits. Imposing a fee that is reasonably
related to the burdens on and increased demand for the City's parks and
recreation facilities created by new development will assist the City in
constructing the required capital improvements to support the fulfillment of
these goals, objectives and policies.
(b) The City has prepared a Parks and Recreation Development
Impact Fee Nexus Study that demonstrates, and the City Council finds,
that there is a reasonable relationship between the purpose for which the
fees established by this Ordinance are to be used and the type of
development projects on which the fees are imposed, and between the
amount of the fees and the cost of the parks and recreation facilities or
portion of the facilities attributable to the development on which the fees
are imposed.
(c) It is the intent of the City Council that the fee required by this
Chapter shall be supplementary to any conditions imposed upon a
development project pursuant to other provisions of the Municipal Code,
the City Charter, the Subdivision Map Act, the California Environmental
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Quality Act, and other state and local laws which may authorize the
imposition of project specific conditions on development.
9.75.020 Applicability of Chapter.
(a) The regulations, requirements and provisions of this Chapter and
Council resolutions adopted pursuant hereto shall apply to all new Projects for
which a development application was determined complete or an application for
change(s) in existing use(s) was made on or after the effective date of this
Ordinance. Any project subject to the provisions of this Chapter shall not be
required to comply with Chapter 6.80 or Part 9.04.10.12 of the Santa Monica
Municipal Code, Project Mitigation Measures.
(b) Notwithstanding the above, the following projects, square footage
and affordable residential units shall not be subject to the requirements of this
Chapter:
(1) places of worship;
(2) City projects;
(3) day care centers;
(4) private K -12 schools;
(5) multi - family rental housing projects developed by a nonprofit housing
provider if the developer is receiving financial assistance through a public
agency, so long as the multi - family rental housing project is an affordable
housing project meeting the requirements of Santa Monica Municipal Code
Section 9.04.02.030.025 and the project's affordable housing obligations will be
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secured by a regulatory agreement, memorandum of agreement, or recorded
covenant with a public agency for a minimum period of fifty -five years;
(6) re- occupancy of square footage in an existing building or structure if
there is no change of use;
(7) square footage used for outdoor dining in the public right of way; and
(8) affordable housing units deed restricted to extremely low, very-low
income. or low income households.
If a development is exempt from the fee at initial construction, but later
converts to a development subject to this Ordinance, the converted square
footage will be deemed net new square footage and the parks and recreation fee
shall be paid prior to final approval of a building permit or, if required by State
law, before the date of final inspection or the issuance of a certificate of
occupancy, whichever occurs first.
9.75.030 Definitions.
For the purpose of this Chapter, the following terms shall be
defined as follows:
(a) "City Projects" shall mean City public works projects and City
community facilities (e.g. libraries, public parking structures, recycling
centers, and community centers), not including public /private partnerships.
(b) "Nexus Study" shall mean the Parks and Recreation
Development Impact Fee Nexus Study prepared by Economic & Planning
Systems, Inc. dated August 2013.
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(c) "Project" shall mean any development having a gross new or
additional floor area of one thousand square feet or more, or that changes
an existing use to a different use that increases the demand on the parks
and recreation system, or residential development of improved or
unimproved land which adds dwelling units. Gross floor area for the
purposes of this definition shall be the same as Section 9.04.02.030.315,
or any successor legislation, but shall exclude parking area.
(d) "Parks and Recreation Development Impact Fee" shall
mean a fee paid to the City by an applicant pursuant to Section 9.75.040
of this Chapter in connection with approval of a project to contribute to the
acquisition and development of open space, parkland, and recreation
facilities to meet demand generated by new development in order to
maintain current service levels consistent with the goals, objectives and
policies of the City's Open Space Element and Parks and Recreation
Master Plan.
9.75.040 Parks and Recreation Mitigation Requirement.
Except as provided in Section 9.75.050, the developer of a Project
shall pay a Parks and Recreation Development Impact Fee in accordance
with the following:
(a) Parks and Recreation Development Impact Fee. Fees shall
be computed as follows:
1. For Single Family residential development projects that
result in the addition of a dwelling unit:
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(A) $7,636 per single family dwelling unit.
2. For Multi - Family residential development projects that result
in the addition of a dwelling unit:
(A) $4,138 per studio /one- bedroom multi - family dwelling
unit.
(B) $6,665 per multi - family dwelling unit with two or more
bedrooms.
3. All non - residential projects shall pay the following based on
the gross square footage of the proposed project:
(A) Office: $2.31 per square foot.
(B) Medical Office: $1.27 per square foot.
(C) Retail: $1.49 per square foot.
(E) Lodging: $3.11 per square foot.
(F) Industrial: $1.30 per square foot.
4. The land use categories identified in subsections (1) — (3),
above, shall have the following meanings:
(A) Single Family Residential shall include Single Family.
(B) Multi - Family Residential shall include: congregate
care —non senior, congregate care — seniors, and multi — family.
(C) Office shall include: creative office, financial
institutions and office, and general office.
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(D) Medical office shall include: full service hospitals and
medical offices, including medical clinics, and offices for medical
professionals.
(E) Retail shall include: animal kennels and veterinary
hospitals, auto repair, car wash, non - residential adult care facilities,
retail and wholesale construction - related materials, nurseries and
garden centers, entertainment and recreational facilities, gas
stations, and art galleries, nightclubs and bars, Personal services,
Post - secondary educational facility, private studio, restaurants —
fast food and cafes, restaurants — sit down, retail durable goods,
retail food and markets, retail mixed, and retail non -food.
(F) Lodging shall include: hotels, motels and other
overnight accommodations.
(G) Industrial shall include: surface or structured auto
inventory storage, heavy industrial and manufacturing, light
industrial, utilities, warehouse and self- storage, and wholesale
distribution and shipping.
5. For mixed residential /nonresidential development, the sum of
the fee required for each component as set forth above in
subdivisions (a)(2) and (a)(3) of this subsection.
6. The amount of legally permitted square footage to be
demolished in an existing building or structure as a part of a Project
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shall be a credit in the calculation of the Parks and Recreation
Development Impact Fee.
(b) Timing of Fee Payment.
1. The Project applicant shall pay fees according to the
schedule of fees in place on the date the fees are paid, except that the
applicant for a vesting tentative map for a development project shall pay
the fees in effect on the date the application for the vesting tentative map
is deemed complete, as automatically adjusted.
2. No building permit for any Project shall be issued unless the
fees have been paid, except for residential uses where state law requires
payment before final inspection or the issuance of certificate of
occupancy, whichever comes first. If state law applies, a contract to pay
the fees shall be executed with the City, in which case, no final inspection
shall be approved until the fees have been paid. If a residential
development project contains more than one dwelling unit and is approved
for development in phases, the developer shall pay the fees in
installments based on the phasing of the residential development
project. Each fee installment shall be paid at the time when the first
dwelling unit within each phase of development has received its final
inspection.
3. For all Projects subject to this Chapter, the City may require
the payment of fees at an earlier time if the fees will be collected for public
improvements or facilities for which an account has been established and
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funds appropriated and for which the City has a proposed construction
schedule or plan prior to final inspection, or the fees are to reimburse the
City for expenditures previously made.
9.75.050 Fee Adjustments and Waivers.
(a) A developer of any Project subject to the fee described in
Section 9.75.040 may request that the requirements of this Chapter be
adjusted or waived based on a showing that applying the requirements of
this Chapter would effectuate an unconstitutional taking of property or
otherwise have an unconstitutional application to the property.
(b) To receive an adjustment or waiver, the applicant must submit
an application to the City Manager or her /his designee, at the time the
applicant files a discretionary project application, or if no such application
is required, a building permit application. The applicant shall bear the
burden of presenting substantial evidence to support the request and set
forth in detail the factual and legal basis for the claim, including all
supporting technical documentation.
(c) The City Manager or her /his designee. shall render a written
decision within ninety days after a complete application is filed. The City
Manager's or designee's decision may be appealed to the City Council if
such appeal is filed within fourteen consecutive calendar days from the
date that the decision is made in the manner provided in Part 9.04.20.24,
Sections 9.04.20.24.010 through 9.04.20.24.050 of this Code or any
successor thereto.
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(d) If the City Manager or her /his designee, or City Council on
appeal, upon legal advice provided by or at the behest of the City
Attorney, determines that applying the requirements of this Chapter would
effectuate an unconstitutional taking of property or otherwise have an
unconstitutional application to the property, the parks and recreation fee
requirements shall be adjusted or waived to reduce the obligations under
this Chapter to the extent necessary to avoid an unconstitutional result. If
the City Manager or her /his designee, or City Council on appeal,
determines that no violation of the United States or California
Constitutions would occur through application of this Chapter, the
requirements of this Chapter remain fully applicable
(e) If an adjustment or waiver is granted, any change in use from
the approved project shall invalidate the adjustment or waiver.
9.75.060 Fee Revenue Account.
Pursuant to Government Code Section 66006, the Parks and
Recreation Development Impact Fee Reserve Account is hereby
established. The fees paid to the City pursuant to the provisions of this
Chapter shall be deposited into the Parks and Recreation Development
Impact Fee Reserve Account and used solely for the purpose described in
this Chapter. All monies deposited into the Reserve Account shall be held
separate and apart from other City funds. All interest or other earnings on
the unexpended balance in the Reserve Account shall be credited to the
Reserve Account.
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9.75.070 Distribution of Parks and Recreation Development
Impact Funds.
All monies and interest earnings in the Parks and Recreation
Development Impact Fee Reserve Account shall be expended solely on
the development, design, construction, and administration costs related to
the acquisition of land for parks, the improvement of existing and new
parkland, and the development of new parks and recreation facilities
needed to accommodate additional occupants of new development
projects. Such expenditures may include, but are not necessarily limited
to the following:
(a) Reimbursement for all direct and indirect costs incurred by
the City to construct parks and recreation improvements pursuant to this
Chapter, including but not limited to, the cost of land acquisition, planning,
legal consultation, engineering, design, construction, construction
management, materials and equipment.
(b) Costs of issuance or debt service associated with bonds,
notes or other security instruments issued to fund parks and recreation
improvements as identified.
(c) Reimbursement for administrative costs incurred by the City
in establishing or maintaining the Parks and Recreation Development
Impact Fee Reserve Account required by this Chapter, including but not
limited to the cost of studies to establish the requisite nexus between the
fee amount and the use of fee proceeds and yearly accounting and
reports.
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No portion of the Parks and Recreation Impact Fee may be diverted
to other purposes by way of loan or otherwise.
9.75.080 Periodic Review and Adjustment of Parks and
Recreation Development Impact Fees.
To account for inflation in construction costs, the fee imposed by
this ordinance shall be adjusted automatically on July 1 of each fiscal
year, beginning on July 1, 2015, by a percentage equal to the appropriate
Construction Cost Index as published by Engineering News Record, or its
successor publication, for the preceding twelve (12) months.
9.75.090 Fee Refunds.
(a) If a Parks and Recreation development impact fee is
collected on a Project and the permit for that Project later expires, is
vacated or voided before commencement of construction, the developer
shall, upon request, be entitled to a refund of the unexpended Parks and
Recreation development impact fee paid, less a portion of the fee
sufficient to cover costs of collection, accounting for and administration of
the fee paid. Any request for a refund shall be submitted in writing to the
Planning and Community Development Director within one year of the
date that the permit expires or is vacated or voided. Failure to submit a
timely request for refund shall constitute a waiver of any right to a refund.
(b) Fees collected pursuant to this Chapter which remain
unexpended or uncommitted for five or more fiscal years after deposit into
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the Parks and Recreation Development Impact Fee Reserve Account shall
be accounted for or may be refunded as provided by state law.
9.75.100 Fee revision by resolution.
The amount of the Parks and Recreation development impact fees
and the formula for the automatic annual adjustment established by this
Chapter may be reviewed and revised periodically by resolution of the City
Council. This Chapter shall be considered enabling and directive in this
regard.
9.75.110 Regulations.
The City Manager, or her /his designee, is authorized to adopt
written administrative regulations or guidelines that are consistent with and
that further the terms and requirements set forth within this Chapter.
SECTION 2. This Ordinance shall apply to all development applications meeting
the criteria for applicability as defined herein determined complete after the effective
date of this Ordinance.
SECTION 3. The Council finds that the adoption of this ordinance is not a project
pursuant to CEQA Guideline section 15378(b)(4), which excludes from the definition of
Project "the creation of government funding mechanisms or other government fiscal
activities, which do not involve any commitment to any specific project which may result
in a potentially significant physical impact on the environment." Alternatively, the
proposed ordinance is exempt from the provisions of the California Environmental
Quality Act (CEQA) pursuant to Section 15061(b)(3) in that it can be seen with certainty
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that the proposed ordinance does not have the potential to significantly impact the
environment, since the proposed ordinance amendment is a fee that will be levied on
projects that will be evaluated in compliance with CEQA on their own merits.
SECTION 4. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have passed this Ordinance and each and every section, subsection, sentence, clause,
or phrase not declared invalid or unconstitutional without regard to whether any portion
of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage
of this Ordinance. The City Clerk shall cause the same to be published once in the
official newspaper within 15 days after its adoption. This Ordinance shall become
effective 60 days from its adoption.
APPROVED AS TO FORM:
MA HA JON S OUT IE
Attorney
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Approved and adopted this 14th day of October, 2014.
l
am O'Connor, Mayor
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Ordinance No. 2471 (CCS) had its introduction on September 23,
2014, and was adopted at the Santa Monica City Council meeting held on
October 14, 2014, by the following vote:
Ayes: Councilmembers: Davis, Holbrook, McKeown, Vazquez, Winterer
Mayor O'Connor, Mayor Pro Tern O'Day
Noes: Councilmembers: None
Absent: Councilmembers: None
A summary of Ordinance No. 2471 (CCS) was duly published pursuant to
California Government Code Section 40806 .
ATTEST:
Sarah P. Gorman, City Clerk