Division 14.
Capital Improvements Fee and Reimbursement Agreements

25.166.106 Capital Improvement Fee.

(a)    There is hereby established a Capital Improvement Fee to reimburse the City for the costs it has incurred in constructing public improvements that will directly serve and are necessary for the construction of a new subdivision or development. A public improvement shall be deemed to directly serve and be necessary for the construction of new development if the construction of such improvement could have been imposed as a condition of development had the city not previously constructed the public improvement. (Ord. 2007-01, § 3.)

(b)    The Capital Improvement Fee shall be paid upon the earliest of the following events:

1.    Issuance of a building permit for the development of the subject property;

2.    Filing of a final subdivision map;

3.    Connection to sanitary sewer, water or storm drain facilities.

(Ord. 2007-01, § 3.)

(c)    The amount of the Capital Improvement Fee shall be the estimated proportionate share of the actual and reasonable costs of constructing, sizing, and locating the facilities that directly serve and benefit the individual parcel. (Ord. 2007-01, § 3.)

(d)    The fee imposed on each parcel shall be calculated in the manner provided by subsection (c) and adopted by a resolution of the City Council. The City Council shall hold a duly noticed public meeting regarding the proposed Capital Improvement Fee, as required by Government Code Sections 66016 and 66018. Pursuant to Government Code Section 66018, the cost of conducting the hearing may be included in the Capital Improvement Fee. (Ord. 2007-01, § 3.)

(e)    Funds collected pursuant to this section shall be deposited by the city in a special fund entitled “Capital Improvement Fee Fund,” which is hereby established. This fund shall be used exclusively for the purpose of mitigating the city’s costs of locating, sizing, and constructing facilities on or adjacent to currently undeveloped land that will be developed in the future. (Ord. 2007-01, § 3.)

25.166.107 Capital improvements for property not within the subdivision; reimbursement agreements.

The City may require that a subdivider construct improvements with supplemental size, capacity, number, or length for the benefit of property not within the subdivision and dedicate these improvements to the public pursuant to Government Code Section 66485. The City shall enter into an agreement to reimburse the subdivider for the cost of those improvements in excess of the construction required for the subdivision. (Ord. 2007-01, § 3.)

If the agreement was approved by the City Council with a specific provision to allow a value adjustment to occur to the initial cost of installing the improvements, then the City Engineer shall make adjustments as follows:

1.    On the first January 1 following the date the City entered into the agreement, the City shall increase the costs of the improvements by a dollar amount equivalent to the result of multiplying the original cost amount(s) in the agreement by the interest yield on the five year U.S. Treasury Bill. The percentage of increase for the first adjustment will be prorated based on the number of months since the date of the agreement. These new amounts will be effective until January 1 of the next year and will be the new basis of costs for calculating the value adjustment for the following year. (Ord. 2007-01, § 3.)

2.    On each January 1 following the first adjustment noted above in subsection (1), the City shall increase the costs of the improvements by a dollar amount equivalent to the result of multiplying the current cost amount(s) in the agreement by the interest yield on the five year U.S. Treasury Bill. These new amounts will be effective until January 1 of the next year and will be the basis of costs for calculating the value adjustment for the following year. (Ord. 2007-01, § 3.)