Chapter 3.23
PUBLIC FACILITIES AND SERVICES IMPROVEMENT FEE
Sections:
3.23.010 Establishment, purpose and use of development impact fee.
3.23.030 Development impact fee – Credits.
3.23.050 Fee – Exempted activities.
3.23.060 Accounting of funds (Government Code Sections 66001 and 66006).
3.23.070 Fee – Automatic annual adjustments.
3.23.010 Establishment, purpose and use of development impact fee.
A. The city council creates and establishes a development impact fee for the city which shall be used to mitigate unfavorable impacts attributed to new development. Specifically, this fee shall be used to pay that portion of the costs of capital improvements of designated public facilities, including transportation, police, City Hall, parks and recreation, public works, and library facilities and associated administrative costs, attributable to new development.
B. The city council shall adopt the development impact fee from time to time by resolution, and will make the findings required by Government Code Section 66001 based upon substantial evidence in the record following a noticed public hearing as required by law. (Ord. 556 § 3 (Exh. A), 2016; Ord. 366 § 1, 1992; Ord. 321 § 1, 1989)
3.23.020 Definitions.
For the purpose of this chapter, these words shall have the following meanings:
A. “Administration” of the development impact fee means those activities required to review and revise the plan and fee, and to account for and report on the use of the fee.
B. “Capital improvement plan” means the developer fee study, traffic mitigation fee study or other plan that identifies, justifies, and provides the nexus between the development and a development impact fee.
C. “Costs of capital improvements” means any costs related to acquisition, construction, repair and financing, but does not include the costs of routine maintenance.
D. “Cultural and recreation facilities” means any costs of capital improvements related to library, auditorium, community center, parks and similar facilities.
E. “Developer” means and includes, but is not limited to, an individual homeowner or property owner on whose property a “new development” is constructed.
F. “Development project” means a project involving the issuance of a building permit for construction, but does not include a permit to operate.
G. “Essential infrastructure” means any costs of capital improvements related to streets, including curbs, sidewalks and related structures, bridges, traffic control, drainage and similar facilities and activities which serve public transportation, access and drainage requirements, which are otherwise not specifically identified for funding as a part of other city development fees.
H. “Government facilities” means any costs of capital improvements related to City Hall, city garage, equipment yard, offices and parking areas, and similar facilities in or through which the city conducts general government operations.
I. “New development” means any nonresidential development project, residential development project, construction of residential or nonresidential improvements or the addition of space to existing improvements or conversion from one use to another, except as specifically exempted in this chapter.
J. “Public facilities” means any capital improvements or equipment funded through the city’s capital improvement budget related to government and public safety facilities, essential infrastructure and related facilities, and cultural and recreation facilities.
K. “Public safety facilities” means any costs of capital improvements related to city police operations.
L. “Public services vehicles and equipment” means any costs of vehicles and equipment used to provide public works, police and staff services.
M. “Related facilities” means any costs of capital improvements of general city benefit such as major landscaping, fountains, mountains, monuments, signs and similar facilities and activities.
N. “Transportation facility” means any capital improvement related to streets, traffic controls, park and ride lots, bicycle facilities, public transportation, and related improvements that provide traffic capacity or reduce traffic volume. (Ord. 556 § 3 (Exh. A), 2016; Ord. 366 § 1, 1992; Ord. 321 § 2, 1989)
3.23.030 Development impact fee – Credits.
A. The city may credit a developer against fees required by this chapter, for the cost of constructing or purchasing a designated capital improvement(s) from development impact fee moneys collected when a designated capital improvement(s) is constructed or purchased as a condition of development and when such improvement(s) is designated for construction within the budget year.
B. When the improvement(s) is not designated for construction within the budget year, the city may enter into an agreement to reimburse a developer for the cost of construction or purchase as funds are collected for that purpose.
C. The city may credit a developer against fees required by this chapter, if an existing building is being demolished for the development. Fees will be credited based on original construction type. Such adjustment shall not cause the amount of the fee to be below $0.00 per facility.
D. The city may credit a developer against fees required by this chapter, if the change in business use results in the charge of fees from a different category. Fees will be credited based on original business use type. Such adjustment shall not cause the amount of the fee to be below $0.00 per facility. (Ord. 556 § 3 (Exh. A), 2016; Ord. 366 § 1, 1992. Formerly 3.23.043)
3.23.040 Fee – When payable.
Any developer applying for a building permit for new development shall be assessed and shall pay the fee as a condition of issuance of the building permit, unless an exception pursuant to Government Code Section 66007 applies permitting payment to be made at a later time. Following are instances when fees are payable:
A. Development impact fees shall be charged on applicable new buildings, expanded square footage of existing buildings and any change of use that changes the demand of the parcel.
B. Development impact fees shall be calculated based on the building’s use, with a best fit into one of the applicable land use type fee categories identified in the development impact fee justification study and instances where a unique use is presented; the city’s planning department will determine, in its sole discretion, which land use category is most appropriate.
C. The fee imposed upon a new development shall be reduced by the amount of the fee which would be imposed on the existing development on the parcels comprising the new development if such existing development were to be constructed at the time the fee was calculated. However, such adjustment shall not cause the amount of the fee to be below $0.00. (Ord. 556 § 3 (Exh. A), 2016; Ord. 382 § 1, 1993; Ord. 366 § 1, 1992; Ord. 321 § 6, 1989. Formerly 3.23.060)
3.23.050 Fee – Exempted activities.
Any developer engaging in development activities which satisfy the following criteria shall not be required to pay a development fee:
A. An alteration which does not increase the floor area of a structure; or
B. An addition to a single-family residential dwelling, which does not constitute the addition of a living unit as defined by the Uniform Building Code. (Ord. 556 § 3 (Exh. A), 2016; Ord. 321 § 7, 1989. Formerly 3.23.070)
3.23.060 Accounting of funds (Government Code Sections 66001 and 66006).
A. Pursuant to Government Code Section 66006(a), the city council directs that all development impact fees shall be maintained in a fund(s) separate from the city’s general fund. The city shall utilize the fees in this account, along with any interest earnings, only for the costs of public improvements and facilities as specified in this chapter and in the resolution adopting the fees.
B. The city shall, annually within 180 days after the end of each fiscal year, make available to the public the following information as set forth in Government Code Sections 66006(b)(1)(A) through (H), for each separate account or fund established pursuant to Section 66006(a):
1. A brief description of the type of fee in the account or fund.
2. The amount of the fee.
3. The beginning and ending balance of the account or fund.
4. An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
5. An identification of an approximate date by which the construction of the public improvement will commence if the city determines that sufficient funds have been collected to complete financing on an incomplete public improvement.
6. A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan.
7. The amount of any refunds and allocations made pursuant to Government Code Sections 66001(e) and (f).
Not less than 15 days after this information is made available to the public, the city council shall review the information at its next regularly scheduled public meeting. Notice of the time and place of the meeting shall be mailed at least 15 days prior to the meeting to any interested party who files a written request for such notice. (Section 66006(b)(2).)
C. Pursuant to Government Code Section 66001(d), if a development impact fee paid by a developer for a particular development has not been expended by the city after the first deposit into the account or fund, and every five years thereafter, then the city council shall make the following findings with respect to the portion of any account or fund remaining unexpended, whether committed or uncommitted:
1. Identify the purposes to which the development impact fee is to be put.
2. Determine a reasonable relationship between the fee and the purpose for which it is charged.
3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements.
4. Designate the approximate dates on which the funding needed to complete the incomplete improvements is expected to be deposited into the appropriate account or fund.
D. If the city council does not make such findings, then the city council shall refund the collected fees pursuant to Government Code Section 66001. (Ord. 556 § 3 (Exh. A), 2016; Ord. 321 § 8, 1989. Formerly 3.23.080)
3.23.070 Fee – Automatic annual adjustments.
The development impact fees shall be automatically adjusted annually to reflect the 10-year average of the construction cost index increase of 2.74 percent. (Ord. 556 § 3 (Exh. A), 2016; Ord. 441 § 1, 1999; Ord. 366 § 1, 1992; Ord. 321 § 9, 1989. Formerly 3.23.090)