CITY COUNCIL SUMMARY REPORT. Agenda No. Keywords: Sewer Connection Fee Ordinance Amendment October Meeting Date: PREPARED BY:

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1 SUMMARY REPORT CITY COUNCIL PREPARED BY: Agenda No. Keywords: Meeting Date: Sewer Connection Fee Ordinance Amendment October Joseph M. Leach, PE, City Engineer/Public Works Director City Engineer/Public Works Department RECOMMENDATION I REQUESTED ACTION: Waive second reading, read by title only and adopt an ordinance repealing a portion of Chapter , "Sewer Connection Fees," and Chapter , "Connection Fee," and adding new language to Chapter (C), "Connection Fee," of the Dixon Municipal Code to authorize connection fee revisions by resolution rather than ordinance. BACKGROUND I DISCUSSION I ANALYSIS: The City of Dixon's General Plan states that "the City shall ensure that new development will pay all of the incremental public and facility costs which it generates." 1 As allowed by Government Code section et seq. (Mitigation Fee Act also known as AB 1600), and Chapter 4.07 of Title 4 of the Dixon Municipal Code, Capital Facility Fees have been adopted to fund the necessary infrastructure and public facilities to mitigate the impact of new development. The Municipal Code outlines a process to adjust these fees annually to reflect changes in construction costs and to insure that adequate funds are available at the time a project is built. The adjustment is based on the annual Engineering News-Record (ENR) Construction Cost Index each September. Of the various Capital Facilities Fees to which the annual review and adjustment apply, only Sewer Connection Fees still require revisions to be approved via ordinance. The adoption of the an ordinance amendment allowing for Sewer Connection fees to be adjusted through City Resolution would create a consistent process for fee implementation and ensure conformance with existing procedures. For this reason, it is recommended that the Council adopt the revisions to the Dixon Municipal Code. A draft Ordinance was introduced during the public hearing held at the October 13, 1 Urban Development & Community Design Policy 7. Page 1 of 2

2 2015 City Council meeting. The Council voted unanimously to proceed with a second reading of the Ordinance at the next available meeting. No modifications were requested by the Council or public during the public hearing introducing the ordinance. This second reading and public hearing is the next step in the adoption of the proposed ordinance. A notice of public hearing, included as Attachment 2, was published in the Dixon Tribune on October 2, 2015, in conformance with public hearing noticing requirements. The full text of the Ordinances has also been posted for review at City Hall. ALTERNATIVES/OPTIONS: While not recommended, the Council could elect to not adopt the Code Revision and keep the status quo with implementation of fee revisions through the Ordinance Amendment process. FINANCIAL IMPACT: It is anticipated that there would be negligible savings related to the absence of special noticing requirements related to revising the Municipal Code for the adoption of future rate increases or reductions. SUBSEQUENT ACTIONS: Upon adoption, the City Clerk will publish the ordinance within fifteen (15) days. The Ordinance will take effect 30 days from the date of final passage. A subsequent action will be brought before the City Council to increase the Sewer Connection Fees by the applicable Engineering News Record Construction Cost Index. ENVIRONMENTAL IMPACT: None. ATTACHMENTS: 1. An Ordinance of the City Council of the City of Dixon amending a portion of Chapter , "Sewer Connection Fees" and Chapter , "Connection Requirements," and adding new language to Chapter (C), "Connection Fee." 2. Notice of Public Hearing published in the Dixon Tribune on October 2, 2015.

3 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DIXON REPEALING PORTIONS OF CHAPTER "SEWER CONNECTION FEES" AND CHAPTER "CONNECTION REQUIREMENTS" AND REVISING LANGUAGE TO CHAPTER (C) "CONNECTION FEE" OF TITLE 14 "WATER AND SEWERS" OF THE DIXON MUNICIPAL CODE WHEREAS, new development within the City of Dixon requires expansion of existing public facilities, infrastructure, and services to accommodate and mitigate the additional burdens; and WHEREAS, the expansion of existing public facilities, infrastructure, and services is necessary to promote and protect the public health, safety, and welfare to provide adequate public facilities, infrastructure and services to accommodate new development; and WHEREAS, Sections through of Chapter 4.07 of Title 4 and section of Title 14 of the Dixon Municipal Code levies certain Capital Facilities Impact Fees ("fees"), including a Sewer Connection Fee, in accordance with the provisions of the Mitigation Fee Act, Government Code section et seq. to fund the necessary public facilities, infrastructure, and services to mitigate the impact of new development; and WHEREAS, Sections through of Chapter 4.07 of Title 4 of the Dixon Municipal Code provides that the amount of said fees may be amended as necessary to reflect the percentage increase or decrease in construction costs between most recent September 1 preceding the annual review and the previous most recent September 1 preceding said review based upon the Engineering News-Record Construction Cost Index; and WHEREAS, the adoption of the proposed Ordinance revisions gives the Council greater flexibility to expedite the implementation of Sewer Connection Fee adjustments through the adoption of a City Council resolution. THE CITY COUNCIL OF THE CITY OF DIXON DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Chapter (C) of the Dixon Municipal Code is hereby amended to read as follows: C. Connection Fee. Each applicant for a permit shall pay a connection fee as set forth by resolution. 1

4 Section 2. Chapter (B) of the Dixon Municipal Code is hereby amended to read as follows: B. Sewer Connection Fees. Each applicant for a permit shall pay a connection fee as set forth by resolution. Section 3. If any section, subdivision, sentence, clause, phrase or portion of this Ordinance is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions thereof. Section 4. The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated in the City. Section 5. This Ordinance shall take effect 30 days from the date of final passage. The foregoing Ordinance was introduced and read at a regular meeting of the City Council of the City of Dixon on the 13th day of October, 2015, and was adopted and enacted at a duly held regular meeting of the City Council held on the 27th day of October, 2015 by the following vote on roll call: AYES: NOES: ABSTAIN: ATTEST: Suellen Johnston City Clerk Jack Batchelor, Jr. Mayor 2

5 NOTICE OF PUBLIC HEARING PUBLIC NOTICE THE CITY OF DIXON CITY COUNCIL PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Dixon ("City") will hold a public hearing on Tuesday, October 13, 2015 at 7:00 p.m., or as soon thereafter, in the City Council Chambers, 600 East A Street, Dixon, CA to conduct a public hearing on the proposed ordinance as follows: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DIXON REPEALING PORTIONS OF CHAPTER 'SEWER CONNECTION FEES,' AND CHAPTER 'CONNECTION REQUIREMENTS' AND ADDING NEW LANGUAGE TO CHAPTER (C) 'CONNECTION FEE' OF TITLE 14 'WATER AND SEWERS' OF THE DIXON MUNICIPAL CODE" SUMMARY OF PROPOSED ORDINANCE The City Council will introduce an ordinance to repeal and amend portions of Chapter and Chapter related to Sewer Connection Fees and the process by which they are revised and adjusted. Sewer Connection Fees (SCF) are fees assessed by the City and paid by developers to assist in recovering the added costs associated with new development. As new development occurs, it places additional strain on existing infrastructure and facilities. The result is an increase in operating and maintenance costs incurred by the City. The fees, also known as Development Impact Fees, were established by Government Code section et seq. (Mitigation Fee Act also known as AB 1600), to help offset these added costs and to mitigate the impact of new development on City and its citizens. Sewer Connection Fees are subject to annual review and adjustment based on the Engineering New Record (ENR) Construction Cost Index (CCI). The current process for adjusting SCF requires the adoption of an ordinance amendment. The proposed ordinance change would allow these fees to be amended via City Council Resolution, allowing the City to implement adjustments to SCF by following the same process through which all other Development Impact Fees are revised. ENVIRONMENTAL INFORMATION: It is recommended that the adoption of this Ordinance be determined to be exempt from environmental review under Public Resources Code section as an action by a regulatory agency to maintain, restore, or enhance the environment, other than construction activities, where the regulatory process includes procedures to protect the environment. ALL INTERESTED PARTIES: are invited to attend the October 13, 2015, public Attachment 1

6 hearing to express opinions or submit evidence for or against the approval of any component of either Ordinance. At the above noted time and place, testimony from interested persons will be heard and considered by the City of Dixon City Council prior to taking action on either Ordinance. Written comments should be mailed or delivered to City Hall, 600 East A Street, Dixon, CA Upon request, the agenda and the documents in the hearing agenda packet can be made available to persons with a disability. In compliance with the Americans with Disabilities Act, the City of Dixon encourages those with disabilities to participate fully in the public hearing process. Individuals with special needs may call (voice) or (TTY) or visit City Hall at 600 East A Street, Dixon. The Council Chambers is accessible to individuals in wheelchairs and special hearing assistance devices are provided upon request. The City does not produce a verbatim transcription of its proceedings. Anyone who desires a verbatim record of this meeting should call the City Clerk in advance of the meeting to discuss acceptable methods of and arrangements for transcription. Such arrangements will be at the sole expense of the individual requesting the record. All meetings are audio and video recorded. DVD copies are available at the Dixon Public Library and at City Hall following the meeting. Copies of the Ordinance will be available for review or copying at City Hall, 600 East A Street, Dixon on October 2, 2015 after the City Council agenda packets, including all public documents relating to the open meeting, are circulated to Councilmembers and the public. A copy of the Ordinance will also be located at the entrance to the Council Chambers during the meeting and available for review at the Dixon Public Library, 230 North First Street, Dixon. Regular City Council meetings are broadcast live on Cable Television Channel 20 - Government Channel. The meetings can also be viewed live through the City's website at and selecting "View City Meetings and Agendas". If a challenge to the above proposed actions is made in court, persons may be limited to raising only those issues they or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council. If you have any questions, please call the City Clerk at (707) , or stop by City Hall at 600 East A Street, Dixon, CA. BY ORDER OF THE DIXON CITY COUNCIL DATED: September 30, 2015 Publication Date: October 3, 2015 Attachment 1