Chapter 3.80
CAPITAL IMPROVEMENT NEW CONSTRUCTION FEE
Sections:
3.80.010 Findings and purpose.
3.80.030 Capital improvement and facilities new construction fee.
3.80.040 Establishment and administration of police, fire and general government funds.
3.80.050 Payment of capital improvement new construction fee.
3.80.060 Amount of capital improvement new construction fee.
3.80.090 Inflationary adjustments.
3.80.100 Adoption in compliance with improvement plan.
3.80.010 Findings and purpose.
A. The purpose of this chapter is to implement city General Plan, Urban Development Policy No. 11.6, and to provide for adequate police, fire and general governmental services and facilities to serve new residential, industrial and commercial development throughout the city. The city council finds that the existing police, fire and general governmental services and facilities will be inadequate to accommodate the needs generated by projected new residential, industrial and commercial growth in the city, and that additional services and facilities are needed to protect and promote the health, safety and welfare of Folsom residents and businesses. This finding is based upon data included in August 1993 Development Impact Fee Update and the May 1996 Supplement prepared by Management Services Institute, Inc. for the city (hereafter the “Nexus Studies”), and on such other information provided to the city council at the public hearing concerning the adoption of this fee.
B. The cumulative and growth inducing environmental impacts of the facilities described in the Nexus Studies have been identified in the Final Environmental Impact Report (EIR) prepared for the 1988 General Plan. Prior to action on site-specific projects, subsequent environmental review will be undertaken as necessary pursuant to the California Environmental Quality Act (CEQA). The city council finds that pursuant to Section 15162 of the CEQA Guidelines, no new effects would occur as a result of this action beyond those identified in the General Plan EIR, and no new mitigation measures are required. Therefore, the city council further finds that adoption of the ordinance codified in this chapter is within the scope of the Final EIR prepared for the city’s General Plan project, and certified by the city council in Resolution No. 2522.
C. Pursuant to General Plan Policies 11.5, 11.6, 11.7, 40.1, 40.3, and similar policies and goals throughout the General Plan, it is the city’s policy to require new development to pay its fair share of the cost to expand public facilities and services that will be necessary to serve residential, industrial and commercial development. The purpose of this chapter is to implement the requirements of the General Plan and, under the authority of Article XI, Section 7, of the California Constitution and the authority of Title 7 of the Government Code, to establish the appropriate method of ensuring that sufficient funding for police, fire and general governmental services and facilities is available to serve residential, industrial and commercial growth in the city.
D. The failure to impose the conditions and regulations of this chapter relating to the payment of the capital improvement new construction fee on building permits would jeopardize residents of the community, in that it would permit construction and development to proceed without adequate police, fire and general governmental services and facilities or adequate means to finance such facilities and services.
E. Analysis of the land use expected at buildout of the city pursuant to the general plan makes it possible to estimate the number of dwelling units to be constructed, the population generated by those dwelling units and the number of persons to be employed by commercial and industrial land users. It is therefore possible to arrive at a fee, based on population and jobs created, which equitably spreads the cost of police, fire and general governmental services and facilities to those who create the need for such facilities and services. It is the intent of this chapter to create such a fee, spreading the costs of police, fire and general governmental services and facilities to those who create the need for such facilities and services, without generating any surplus to the general fund.
F. To determine the need for police, fire and general governmental services and facilities created by new residents and jobholders and to spread the cost of such facilities among those who create the need for them, the city conducted various studies, identified herein as the Nexus Studies. The Nexus Studies estimated the number and type of police, fire and general governmental services and facilities to meet the needs created by new development and the cost of such facilities and services. The fee established by this chapter shall be calculated in the manner called for in the Nexus Studies in order that the impact upon facilities and services is borne by the type of development causing the need for such facilities and services.
G. The fee established by this chapter is in addition to any other fees or charges or taxes, required by law or city code as a condition of development including, but not limited to, the residential construction tax levied by Chapter 17.90, drainage fees levied by Chapter 17.95, major road fees levied by Chapter 12.04, capital improvement new construction fees levied by Chapter 17.92.
H. The fee established by this chapter is necessary in order to assure compliance with the applicable general plan requirements that new development bear the cost for services and infrastructure which is needed to serve such development.
I. The city council has considered the effect of the fee imposed by this chapter with respect to the housing needs of the city as a whole and of the region, particularly as required by the housing element of the general plan, and the city council finds that this chapter does not unduly adversely affect the city’s ability to provide for such needs. (Ord. 871 § 1 (part), 1997)
3.80.020 Definitions.
The following words and phrases are defined for purposes of this chapter as follows:
“Building permit” means the permit issued or required by the city for the construction of any structure pursuant to and as defined by the city’s building code.
“Capital improvement program” means those proposed city-wide facilities identified in the Nexus Studies.
“Commercial” means those business activities which are permitted or allowed in the BP, C-l, C-2, C-3, CH and bed and breakfast zoning districts as set forth in Title 17 of the Folsom Municipal Code.
“Director” means the finance director.
“Dwelling, multiple-family” or “multiple-family dwelling” means a building designed for occupancy as a residence by two or more families, living independently of each other; provided, that multiple-family dwelling also includes forms of congregate living, including, but not limited to, senior citizen homes, retirement homes or boarding homes.
“Dwelling, single-family” or “single-family dwelling” means a building designed for occupancy as a residence by one family.
“Dwelling, mobilehome” or “mobilehome dwelling” means a structure designed for occupancy as a residence by one family that is regulated by Chapter 17.74.
“Dwelling unit” means a building or part of a building designed for occupancy as a residence by a family.
“Facilities” means those police, fire and general governmental improvements, services or infrastructure generally identified in the Nexus Studies.
“Fee” or “capital improvement new construction fee” means the fee(s) established by this chapter.
“General Plan” refers to the city of Folsom General Plan adopted by the Folsom city council in 1988, including all subsequent updates and amendments.
“Improvement funds” means those special funds established pursuant to Section 3.80.040.
“Industrial” means those business activities which are permitted or allowed in the M-1, M-2, M-L or MF zoning districts as set forth in Title 17 of the Folsom Municipal Code.
“Nexus Studies,” means the Development Impact Fee Update by Management Services Institute, Inc. dated August, 1993, and the May, 1996 Supplement thereto, and any subsequent studies conducted by the city and adopted and approved by the city council prior to the adoption of a resolution establishing the amount of the fee charged pursuant to this chapter.
“Residential” means those activities which are permitted or allowed in the R-1-L, R-1-ML, R-1-M, R-3, R-M or R-4 zoning districts as set forth in Title 17 of the Folsom Municipal Code. (Ord. 871 § 1 (part), 1997)
3.80.030 Capital improvement and facilities new construction fee.
There is established a capital improvement new construction fee which shall be imposed on all residential, industrial and commercial property located in the city, unless such property is otherwise exempt as provided for in Section 3.80.070. The fee established by this chapter is in addition to any other fees or charges or taxes that are required by law or city code as a condition of development, including, but not limited to, the residential construction tax levied by Chapter 17.90, drainage fees levied by Chapter 17.95, and major road fees levied by Chapter 12.04. (Ord. 871 § 1 (part), 1997)
3.80.040 Establishment and administration of police, fire and general government funds.
The finance director is directed to establish three improvement funds entitled the police improvement fund, the fire improvement fund and the general government improvement fund. All fees collected pursuant to this chapter shall be deposited in these improvement funds and shall be expended solely to finance the planning, construction and development of the facilities and services identified in the Nexus Studies. (Ord. 871 § 1 (part), 1997)
3.80.050 Payment of capital improvement new construction fee.
Except as otherwise provided by this chapter, the fee imposed pursuant to this chapter shall be paid at or prior to the issuance of any building permit for a structure which is subject to this chapter. (Ord. 871 § 1 (part), 1997)
3.80.060 Amount of capital improvement new construction fee.
The amount of the capital improvement new construction fee shall be established by resolution adopted by the city council of the city, and shall be based upon the determination in the Nexus Studies of: (1) the use of the fee and the type of development on which the fee is imposed; (2) the need for the facilities and/or services created by the new residential and commercial development; and (3) the reasonable cost of the facilities and/or services attributable to new development. (Ord. 871 § 1 (part), 1997)
3.80.070 Exemptions.
A. No fee shall be charged for the following developments or projects:
1. Completed structures;
2. Structures under construction for which a valid building permit is in force upon the effective date of the ordinance codified in this chapter unless such building permit contains an express condition requiring the payment of this fee;
3. Construction within a subdivision which is covered by a development agreement entered into between the developer and the city under Government Code Section 65864 et seq., which agreement is in full force and effect and expressly prohibits the imposition of additional police, fire and general governmental fees; and
4. Building permits for projects with a vesting tentative map approved prior to the effective date of the ordinance codified in this chapter, provided that the vesting tentative map did not require the payment of a fee to mitigate such impacts or include a condition for mitigation for impacts on police, fire and general governmental services or facilities.
5. Local government capital improvement projects/facilities constructed for the benefit of the community and when such facilities are owned and occupied by the local government.
B. If any residential structure in existence at the time of the adoption of the ordinance codified in this chapter is destroyed by fire, explosion, act of God or act of public enemy to the extent of more than one-half the value thereof, any rebuilding after the date of such destruction shall not be subject to the fee imposed by the chapter provided the area of such structure is not increased by more than 10 percent. For the purposes of this chapter, the value shall be determined by the city building inspector based upon the cost of replacement.
C. Additions to existing commercial or industrial structures shall be subject to the fee established by the chapter.
D. Nothing in this chapter shall prohibit these regulations from applying to such projects if existing entitlements expire and/or the applicant applies for a new approval subject to the provisions of this chapter. The city manager or his designee may issue regulatory guidelines to administratively implement this section.
E. In the event of any reduction or adjustment in the fee granted pursuant to this section, any later change in the use, zoning or land use designation for the property involved shall subject the owner to payment of the then applicable fee for such new uses, zoning or land use designation, whether or not a building permit is required. (Ord. 949 § 2, 2001; Ord. 871 § 1 (part), 1997)
3.80.080 Appeal procedure.
A. The developer of any project subject to the fee established by this chapter may apply to the director for a reduction or adjustment to the fee based upon the absence of any reasonable relationship or nexus between the impacts of the project and either the amount of the fee or the facilities to be financed by the fee. The application shall be made in writing and filed with the director not later than 20 calendar days after notification of the amount of the fee. The application shall state in detail the factual basis for the claim of reduction or adjustment and the amount of the proposed reduction or adjustment. The director shall consider the application and render his/her decision in writing not later than 15 calendar days after the filing of the fee adjustment request. Any person aggrieved by the decision of the director may, within 10 calendar days thereafter, appeal the decision in writing to the city council by filing an appeal with the city clerk. The city council shall consider such appeals within 45 calendar days after filing. The decision of the city council shall be final, and shall be reviewable by the Superior Court under Code of Civil Procedure Section 1094.5. No building permit shall be issued for the project until the final decision pursuant to this section has been made. No application for a project shall be considered final or complete for purposes of the Permit Streamlining Act (Government Code Section 65920, et seq.), or any other purpose, until a final decision pursuant to this section has been made.
B. Notwithstanding the provisions of subsection A of this section, a project proponent or applicant may pay the fee “under protest” and receive a building permit. An application for reduction or adjustment pursuant to subsection A of this section shall be filed within ten calendar days after payment under protest and if not so filed, any objection shall be deemed waived. If a reduction or adjustment is made after payment pursuant to this subsection, the applicant shall be refunded the amount by which the fee is reduced or adjusted.
C. The project proponent or applicant applying for a reduction or adjustment shall have the burden of proof, by a preponderance of the evidence, that a reasonable relationship or nexus is lacking between the fee, or facilities or services to be financed by the fee, and the particular project.
D. In the event of any reduction or adjustment in the fee granted pursuant to this section, any later change in the use, zoning or land use designation for the property involved shall subject the owner to payment of the then applicable fee for such new uses, zoning or land use designation, whether or not a building permit is required. (Ord. 871 § 1 (part), 1997)
3.80.090 Inflationary adjustments.
The fee established by this chapter shall automatically be adjusted each fiscal year by a percentage equal to the change in construction costs since the prior fiscal year as determined by the director based upon Engineering News Record (or similar publication) construction cost index. The determination shall be reported in writing to the city council by the director as soon as the information is available. The city council shall forthwith make such adjustment by resolution. (Ord. 871 § 1 (part), 1997)
3.80.100 Adoption in compliance with improvement plan.
When the moneys in the police, fire or general government improvement fund are disbursed for use, the fees shall be used only to finance the planning, acquisition, construction and development of the facilities identified in the Nexus Studies and any improvement plan that may be adopted by the city council to implement the recommendations in the Nexus Studies. (Ord. 871 § 1 (part), 1997)