Chapter 4.10
FUNDING AGREEMENTS
Sections:
4.10.005 Declaration of policy.
4.10.030 Deposit requirements.
4.10.005 Declaration of policy.
It is the purpose of this chapter to require the ascertainment and recovery of costs reasonably borne from fees and charges levied with regard to regulations, products, or services provided by the City. [Ord. 22-007 § 1.]
4.10.010 Definitions.
For the purpose of this chapter, the following definitions shall apply:
“Developer” means an applicant for an official financing incentive or official land use action before any council, agency, board, commission or official of the City.
“Director” means the Community Development Director or their designee.
“Professional” means an attorney, engineer, or financial consultant engaged by the City for the purpose of rendering advice, consultation and other professional services to the City or developer related to an application or project. This term also includes the City Engineer, Assistant City Engineer and the City Attorney, but only if they are compensated on a per-diem basis.
“Project” means a proposed construction, improvement or use of land within the City for which a developer seeks one or more land use planning applications. [Ord. 22-007 § 1.]
4.10.020 Applicability.
The provisions of this chapter shall apply to a developer that submits a development application for a project to the Director or the City Manager. [Ord. 22-007 § 1.]
4.10.030 Deposit requirements.
A. A developer may be required as part of the project application process to post and thereafter maintain a deposit with the City to cover application processing costs and all other established costs payable to the City in connection with a particular project, excepting those projects for which a flat fee rate has been established by the City.
B. The Director and the City Manager are hereby authorized to determine the projects to which this policy shall apply and the appropriate deposit amount that must be maintained until all application processing and related City services for which fees are charged have been completed. In estimating the required amount of funds to be deposited, the Director or City Manager may utilize reasonable assumptions and shall consider determination of approximate amount based upon the amount of time historically spent on similar projects, and/or the likely expenditure estimates of staff time for the pending application based upon reasonable assumptions of the Director or City Manager. Upon the Director or City Manager’s determination that a deposit is required for the project, the City and developer shall enter into a funding agreement, in a form approved by the City Attorney, related to the City’s administration of the deposit balance.
C. When a deposit is required as part of a project, the full deposit, in United States funds (cash or check) shall be made by the developer. The Director or City Manager may calculate the required deposit funds on a phased basis as may be necessary for more complex projects where a full accounting estimate of anticipated expenditures is deemed too speculative. A failure to pay a deposit in the required amount shall result in the application being deemed incomplete.
D. When seventy-five percent (75%) of a deposit has been expended and the Director or City Manager determines that the estimated actual cost of services yet to be performed will exceed the remaining amount, the developer shall make an additional deposit of the amount estimated to be necessary to complete all required services, or such lesser portion as determined to be appropriate by the Director or the City Manager. Written notification of any additional deposit required will be mailed by first class mail to the developer’s address on record or personally delivered to the developer who shall deposit such additional amount by the date specified in the notice. Processing of project applications will not be completed or finalized unless the developer deposit is fully funded as required herein.
E. In the event the additional deposit notice due date identified in subsection D of this section has passed, services of City staff shall be discontinued on the project application(s) when eighty-five percent (85%) of the last deposit has been expended and the Director or City Manager determines that insufficient funds remain. Written notification of the discontinuation of services and need for additional deposit shall be mailed by first class mail to the developer’s address on record or delivered to the developer who shall deposit such additional amount by the date specified in the notice. A failure of a developer to fully fund a deposit in the amount established by the Director or City Manager for a period of sixty (60) or more days following service by the City of notice of the additional deposit required, shall be an unreasonable delay and shall be deemed to be an abandonment of the application(s) with respect to any and all entitlements for which the deposit applies, and upon such abandonment, no further processing of any application(s) for the project shall be performed. Any application deemed to have been abandoned may be resubmitted and shall be subject to all local, State, and Federal requirements applicable to new applications, including payment of any and all application fees and deposits, as are in effect at the time of reapplication. Funds remaining in the developer’s deposit for any such project, if any, shall be returned.
F. In addition to any other remedy for failure to fund a developer cost deposit set forth herein, a failure to fully fund and maintain funding of a developer cost deposit where any portion of such deposit is for the purpose of complying with the California Environmental Quality Act, or the guidelines thereunder, including, but not limited to, processing of any initial study, negative declaration, environmental impact report, or any related action including payment for services of any environmental consultant, may be deemed to constitute an unreasonable delay under the Cal. Code of Regulations, Title 14, § 15109 (CEQA Guidelines) and shall suspend the running of all time periods described in Cal. Code of Regulations §§ 15107 and 15108 for the period of the delay. Alternatively, the City may disapprove the project application where such unreasonable delay has occurred, as provided by Cal. Code of Regulations, § 15109.
G. Following completion of all City services for which any funding has been made to a developer cost deposit, any remaining funds shall be promptly returned to the developer applicant. [Ord. 22-007 § 1.]