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2010-76 Reduction of Residential Development Impact Fees ORDINANCE NO. 2010-76 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MENIFEE AMENDING ORDINANCE NO. 2009-43 TO EXTEND THE REDUCTION OF RESIDENTIAL DEVELOPMENT IMPACT FEES IN THE CITY OF MENIFEE (AREA PLAN 17) UNDER RIVERSIDE COUNTY ORDINANCE NO. 659 The City Council of the City of Menifee does ordain as follows: SECTION 1. The City Council finds as follows: 1. Menifee incorporated on October 1, 2008, and at that time adopted all County of Riverside ordinances, including Ordinance No 659 setting Development Impact Fees (DIF); subsequently, the adoption of such ordinances was extended to February, 2010. 2. Ordinance No. 659 identifies Area Plans 16 and 17 which cover the area now within the City of Menifee. 3. Section 2 of Ordinance No. 659 makes a variety of findings regarding such residential DIF which the City Council hereby readopts in adopting this ordinance. 4. Since the DIF were determined for the areas within the City of Menifee, the economy of the state, nation and world has entered a serious recession, leading to stalled or cancelled residential and commercial development, unemployment, foreclosures and general economic malaise. 5. After investigation and discussion, the Menifee Strike Force has determined that a reduction of such fees for certain public purposes in Area 17 within the City of Menifee may stimulate development specifically within she City by reducing the cost thereof. 6. A reduction of such fees does not change the nexus and proportionality of the fees as the need for the infrastructure funded by the fees has been reduced, rather than removed, and that such costs will be absorbed into future fee payments. 7. For the reasons set out here, the City Council adopted Ordinance No. 2009-43 providing for a reduction of residential DIF and process fees through June 30, 2010 or until 500 permits had been issued, whichever came first. 8. The reduction of DIF successfully has stimulated residential development by providing an additional $600,000 in permitting revenue above that budgeted during the current fiscal year; 9. The development community has asked the City Council to consider an extension of the reduction while the area continues to be faced with unprecedented unemployment rates as well as other negative economic factors. 10. On May 4, 2010 the City Council conducted a duly noticed public hearing on the extension of such reduction and heard all testimony, pro and con, as discussed the issued City of Menifee Ordinance No. 2010-76 DIF Fee Reduction among its members before determining to extend the reduction for FY 2010-2011 and to remove the 500 permit limit. 11. This action shall be exempt from CEQA pursuant to CEQA Guideline 15061(b) (3) because there is no possibility that the adoption of this ordinance shall have an effect of the environment. SECTION 2. Ordinance No. 2009-43, amending Section 7, "Development Impact Fee," of Ordinance No. 659, is amended to read as follows: "Notwithstanding the fees set out below or any provision of this Ordinance to the contrary, for any development located within the boundaries of the City of Menifee (in Area Plan 17), on and after the effective date of this Ordinance the residential fees as set out in sections (b) through (i) and (k) are reduced by sixty-five percent (65 %) and the hourly rates used to calculate deposits shall be reduced by twenty percent (20%). Such reduction shall remain in place until June 30, 2011." SECTION 3. This ordinance shall take effect 60 days from the date of its adoption. PASSED, APPROVED AND ADOPTED this 18th day of May, 2010. Wallace W. Edgerton, Ma r ATTEST: P*Mby Kathy Bennett, City Clerk Approved as to form: Karen A. Feld, City Attorney Nallace W.Edgerton Mayor Fred Twyman Mayor Pro Tem John V.Denver Councilmember Darcy Kuenzi Councilmember STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ss Councilmember Scott Mann CITY OF MENIFEE ) I, Kathy Bennett, City Clerk of the City of Menifee, do hereby certify that the foregoing Ordinance No. 2010-76 was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Menifee on the 4th day of May, 2010, and that thereafter, said Ordinance was duly adopted by the,City Council of the City of Menifee at a meeting thereof held on the 18th day of May, 2010 by the following vote: Ayes: Denver, Kuenzi, Mann Noes: Edgerton, Twyman Absent: None Abstain: None Kathy Bennett, City Clerk 29714 Haun Road Menifee,CA 92586 Phone 951.672.6777 Fax 951.679.3843 vww.cityofinenifee.us