REQUEST FOR COUNCIL ACTION

CITY OF SAN DIEGO

CERTIFICATE NUMBER
(FOR COMPTROLLERS USE ONLY)
N/A

TO:
FROM (ORIGINATING DEPARTMENT): DATE:
CITY COUNCIL
Planning
4/9/2015
SUBJECT: Amendment to the Otay Mesa Public Facilities Financing Plan for Fiscal Year 2014, and associated
Facilities Benefit Assessments and Development Impact Fees
PRIMARY CONTACT (NAME, PHONE):
SECONDARY CONTACT (NAME, PHONE):
Frank January,619.533.3699/MS 606F
Scott Mercer, 619.533.3676/MS 606F
COMPLETE FOR ACCOUNTING PURPOSES
FUND
FUNCTIONAL AREA
COST CENTER
GENERAL LEDGER
ACCT
WBS OR INTERNAL
ORDER
CAPITAL PROJECT No.
AMOUNT

0.00

0.00

0.00

0.00

0.00

FUND
FUNCTIONAL AREA
COST CENTER
GENERAL LEDGER
ACCT
WBS OR INTERNAL
ORDER
CAPITAL PROJECT No.
AMOUNT

0.00

0.00

0.00

0.00

0.00

COST SUMMARY (IF APPLICABLE):

ROUTING AND APPROVALS
APPROVING
APPROVAL
DATE
CONTRIBUTORS/REVIEWERS:
AUTHORITY
SIGNATURE
SIGNED
Financial Management
ORIG DEPT.
Tomlinson, Tom
04/22/2015
Comptroller
CFO
Liaison Office
DEPUTY CHIEF
Graham, David
04/28/2015
Environmental
COO
Analysis
Equal Opportunity
CITY ATTORNEY
Vonblum, Heidi
Contracting
COUNCIL
PRESIDENTS OFFICE
PREPARATION OF:
RESOLUTIONS
ORDINANCE(S)
AGREEMENT(S)
DEED(S)
First Council Date:
1) Approve an Amendment to the Otay Mesa Public Facilities Financing Plan and Facilities Benefit Assessment
for Fiscal Year 2014; and
2) Adopt a Resolution of Intention to designate an area of benefit for a Facilities Benefit Assessment (FBA) in
Otay Mesa.

Second Council Date:

1) Adopt a Resolution of Designation for the Facilities Benefit Assessment (FBA) in Otay Mesa; and
2) Approval of the setting of Development Impact Fees (DIF) consistent with the FBA in Otay Mesa.

STAFF RECOMMENDATIONS:
Approve the requested actions.
SPECIAL CONDITIONS (REFER TO A.R. 3.20 FOR INFORMATION ON COMPLETING THIS SECTION)
COUNCIL DISTRICT(S):
CD8
COMMUNITY AREA(S):
Otay Mesa
ENVIRONMENTAL IMPACT:
On March 11, 2014, by Resolution No. 308809, the City Council certified
Environmental Impact Report No. 2004651076. Pursuant to 21166 of
CEQA, there is no change in circumstance, additional information or project
changes to warrant additional environmental review for the current action.
CITY CLERK
Please send a copy of the signed Resolutions to Frank January, MS 606F.
INSTRUCTIONS:

COUNCIL ACTION
EXECUTIVE SUMMARY SHEET
CITY OF SAN DIEGO
DATE: 4/9/2015
ORIGINATING DEPARTMENT: Planning
SUBJECT: Amendment to the Otay Mesa Public Facilities Financing Plan for Fiscal Year 2014,
and associated Facilities Benefit Assessments and Development Impact Fees
COUNCIL DISTRICT(S): CD8
CONTACT/PHONE NUMBER: Frank January/619.533.3699/MS 606F
DESCRIPTIVE SUMMARY OF ITEM:
Requesting approval of an amendment to the Otay Mesa Public Facilities Financing Plan which
sets Facilities Benefit Assessments (FBA) and Development Impact Fees (DIF) for the
community and ensures continued funding for community infrastructure.
STAFF RECOMMENDATION:
Approve the requested actions.
EXECUTIVE SUMMARY OF ITEM BACKGROUND:
The Otay Mesa Public Facilities Financing Plan (PFFP) and Facilities Benefit Assessment for
FY 2014 was approved by Council on March 25, 2014, by Resolution R-308811. This Public
Facilities Financing Plan amends and revises that plan, and will serve as the basis for the Capital
Improvement Program (CIP) as it pertains to programming FBA funds in Otay Mesa over the
next 48 years. The purpose of this amendment is to reprogram available funding to allow the
Cesar Solis Community Park to move to construction in FY 2016.
The proposed amendment to the PFFP includes an update to the residential development
schedule, updated costs and schedule for four parks (Cesar Solis Community Park, Dennery
Ranch Neighborhood Park, Riviera Del Sol Neighborhood Park, and Hidden Trails
Neighborhood Park). Incidental changes include the addition of a new trip generation rate for
automobile storage in Otay Mesa, updated costs for Ocean View Hills Parkway, and a corrected
street name in the title of T-4.1 Del Sol Boulevard (changing the limits from Surfcrest Drive to
Surfpoint Way). Other pages in the PFFP have been amended to be consistent with the updated
information reflected in the project pages as described above.
The FY 2014 Public Facilities Financing Plan amendment proposes a 10% increase in the
residential FBA fee from $32,705 to $35,972 per single dwelling unit and from $29,071 to
$31,974 per multi-dwelling unit in FY 2016. This fee increase is the result of a $9,060,000 net
increase to estimated park costs for Cesar Solis Community Park, Dennery Ranch Neighborhood
Park, Riviera Del Sol Neighborhood Park, and Hidden Trails Neighborhood Park. The fee
increase applies only to the residential land uses in the Otay Mesa community while the nonresidential FBA rates remain unchanged. An inflation factor is used to provide automatic annual
increases in the assessment rate and takes effect at the beginning of each fiscal year (July 1
through June 30).

The amended financing plan details the public facilities that will be needed through the ultimate
development of Otay Mesa and for the projected population at full community development,
which is estimated to be in the year 2062. The remaining needed facilities are in the
transportation, park, police, library, and fire-rescue categories. The goal of the FBA is to ensure
that sufficient funds will be available to provide for community facilities as indentified in the
Otay Mesa Community Plan.
Development Impact Fees (DIF) are collected to mitigate the impact of additional development
on properties that have either already paid FBAs and/or that have never been assessed. DIF,
equal to current FBA, are appropriate for such development. Therefore, it is recommended that
the amended FY 2014 assessments also be adopted as DIF for Otay Mesa.

CITY STRATEGIC PLAN GOAL(S)/OBJECTIVES:

Goal #2: Work in partnership with all of our communities to achieve safe and livable
neighborhoods.
Objective #3: Invest in infrastructure.
Goal #3: Create and sustain a resilient and economically prosperous City.
Objective #1: Create dynamic neighborhoods that incorporate mobility, connectivity, and
sustainability.

FISCAL CONSIDERATIONS:
Approval of the amended financing plan and increase to the residential FBA/DIF rates will
continue to provide a funding source for the public facilities identified in the Otay Mesa Public
Facilities Financing Plan.

EQUAL OPPORTUNITY CONTRACTING INFORMATION (IF APPLICABLE):

Contracts or agreements associated with this action will be subject to the Citys Equal
Opportunity Contracting (San Diego Ordinance No. 18173, Section 22.2701 through 22.2708)
and Non-Discrimination in Contracting Ordinance (San Diego Municipal Code Sections 22.3501
through 22.3517).

PREVIOUS COUNCIL and/or COMMITTEE ACTION (describe any changes made to the item
from what was presented at committee):
On June 3, 2014, the Infrastructure Committee voted to forward the Amendment to the Otay
Mesa Public Facilities Financing Plan and Facilities Benefit Assessment for FY 2014 to the City
Council.

COMMUNITY PARTICIPATION AND PUBLIC OUTREACH EFFORTS:

On May 20, 2015, the Otay Mesa Planning Group voted 14-0-1 in support of the the proposed
changes in the Amendment to the 2014 Otay Mesa Public Faciliteis Financing Plan.

KEY STAKEHOLDERS AND PROJECTED IMPACTS:

The key stakeholders are the property owners and community members of Otay Mesa. This
action redistributes funding to allow construction to begin on the Cesar Solis Community Park in
FY 2016, which will provide a direct and near-term benefit to the communitys residents. The
action also updates the costs associated with four key park projects and updates the residential
FBA and DIF needed to support the revised park costs. The FBA and DIF charged to residential
development projects will increase by 10% to assure adequate funding for the aforementioned
park projects.

Tomlinson, Tom
Originating Department
Graham, David
Deputy Chief/Chief Operating Officer