Chapter 13.30
WATER IMPACT FEE
Sections:
13.30.010 Findings and purpose.
13.30.040 Administration of water impact fund.
13.30.050 Payment of water impact fee.
13.30.060 Amount of water impact fee.
13.30.090 Inflationary adjustments.
13.30.100 Adoption in compliance with improvement plan.
13.30.110 Authorization of credits.
13.30.130 Procedure for credits.
13.30.140 Apportionment of credits.
13.30.150 Criteria for reimbursement.
13.30.160 Procedure for reimbursement.
13.30.170 Reimbursement agreements.
13.30.010 Findings and purpose.
A. On October 31, 1988, the city council of the city of Folsom approved and adopted its General Plan (the “General Plan”) identifying proposed growth within the city limits and further identifying the impacts of such growth upon public facilities within the city including the impacts on water supply and the water supply system.
B. City of Folsom General Plan, Urban Development Policy No. 11.6, Policy on Municipal Services and Facilities states in part that:
[i]t is the policy of the City of Folsom to require new development to bear the cost of its increased demand/effect on municipal services and facilities so as [to] not create a greater burden on existing residents. . . .[i]t is the policy of the City of Folsom to require certain necessary improvements as a part of the development and/or the payment of municipal services and facilities fees consistent with the proportional effect of the development on such services. The City will periodically update its fees to reflect the cost of providing municipal services and facilities.
C. General Plan Policies 40.1, 40.2, 40.5 further provide that 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.
D. The city of Folsom water master plan dated December 1998 (Water Plan) was adopted by the city council on May 25, 1999 by Resolution No. 6028. The water plan analyzed the city’s present and projected water supply and facilities demands, and the costs of water conservation efforts within developed areas of the city.
E. In order to further determine the need for water supplies and facilities created by new residents and businesses and to spread the cost of such facilities among those who create the need for them, the city prepared the water impact fee study dated November 1, 1999. This study, utilizing information contained in the water plan, estimated the amount and type of water supplies and facilities needed to meet the needs created by new development and the cost of such supplies and facilities.
F. Existing water supplies will be inadequate to accommodate the needs generated by projected new residential, industrial and commercial growth in the city and, additional water supplies are needed to protect and promote the health, safety and welfare of Folsom residents and businesses. This finding is based on the water plan, the water impact fee study and on such other information provided to the city council at the public hearing concerning the adoption of the ordinance codified in this chapter. The water plan further provides that an additional supplemental water supply is needed to meet demands in dry years when surface water is limited and/or unavailable.
G. The city intends to enter into a subcontract with the Sacramento County water agency for an additional water supply needed to meet the demands of new residential, industrial and commercial growth (Fazio Water). The Fazio Water is part of the Central Valley Project (CVP) water and has been obtained under Public Law 101-514 (Section 206). The primary contract and the subcontract further require that the city install water meters throughout the city.
H. Specific mitigation measures in the Final Environmental Impact Statement/Environmental Impact Report for the CVP Water Supply Contracts Under Public Law 101-514 (Section 206) dated November 1998 (CVP FEIS/EIR) mandate that the city of Folsom and the Sacramento County water agency shall only execute the subcontract for the Fazio Water after the city notifies the agency that funding has been provided for the acquisition of alternative dry-year water supplies and for 10 years of water conservation implementation in the form of water meter retrofitting.
I. The city further desires to participate in the regional effort to protect the lower American River, which requires that in critically dry years, the city limit the amount of surface water obtained from the American River and fill the balance of city needs with alternate water supplies.
J. 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 burden of financing water supplies and facilities to those who create the need for such facilities. It is the intent of this chapter to create such a fee, spreading costs of water supplies and facilities to those who create the need for such supplies and facilities, without generating any surplus to the general fund. The purpose of this chapter is to implement the requirements of the General Plan requirements 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 water supply facilities is available to serve residential, industrial and commercial growth in the city.
K. The water impact fee will create a financing mechanism for the acquisition of alternative dry-year water supplies and for 10 years of water conservation implementation in the form of water meter retrofitting, thereby allowing the city to fulfill the purposes set forth above. In particular, the fee established by this chapter is further necessary in order to assure compliance with the applicable General Plan requirements that new development bear the cost for water supplies and related facilities which is needed to serve such development.
L. The failure to impose the conditions and regulations of this chapter relating to payment of the fee on building permits would jeopardize residents of the community, in that it would permit construction and development to proceed without adequate water supplies and related facilities or means of financing such facilities.
M. The cost estimates set forth in the water impact fee study are reasonable cost estimates for constructing the facilities and providing the water supplies specified therein, and the fees which may be generated by new development will not exceed the total of these construction costs made necessary by such new development. The fee established by this chapter has been calculated in the manner called for in this study in order that the impact upon supplies and facilities is borne by the type of development causing the same.
N. Based upon all evidence and testimony presented, including the water impact fee study, the city council finds that there is a clear and demonstrated relationship between the use of the fee provided for herein, namely the acquisition of alternative dry-year water supplies and for 10 years of water conservation implementation in the form of water meter retrofitting, and the types of projects upon which the fee is to be imposed, namely new residential, industrial and commercial development. New residential, industrial and commercial development will generate a need for additional water supplies and infrastructure as described in the water impact fee study.
O. Based upon all evidence and testimony presented, including the water impact fee study, the city council finds that there is a reasonable relationship between the need for the acquisition of alternative dry-year water supplies and for 10 years of water conservation implementation in the form of water meter retrofitting, and the type of development projects upon which the fee is to be imposed, namely new residential, industrial and commercial construction. From careful consideration of the matter, the city council finds that: (1) new development will adversely impact existing water supplies and facilities; (2) will create a need for additional water supplies and related facilities for new development; and (3) the acquisition of water supplies and construction of related facilities set forth in the water impact fee study are appropriate to serve such new development in light of these impacts.
P. Based upon all evidence and testimony presented, including the water impact fee study, the city council finds that there is a reasonable relationship between the amount of the fee as provided for in this chapter and the cost of the acquisition of alternative dry-year water supplies and for 10 years of water conservation implementation in the form of water meter retrofitting, made necessary by new development. Further, the city council finds that the manner in which the fee is allocated upon each unit of new development is fair and does not exceed the cost of providing facilities generated by the construction of each unit of new development.
Q. The establishment of this water impact fee is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15061(b)(3) and 15273, in that there is no possibility that the establishment of this fee may have a significant effect on the environment, and further because the purpose of establishing this fee is to assist the city in maintaining services within its jurisdictional boundaries. This exemption is specifically based upon the following facts:
1. The environmental impacts of the facilities described in the water impact fee study, including cumulative and growth-inducing impacts, have been identified in the final environmental impact report (the “EIR”) prepared for the 1988 General Plan and certified by the city council in Resolution No. 2522, and in the final Environmental Impact Statement/Environmental Impact Report for the CVP Water Supply Contracts Under Public Law 101-514 (Section 206) dated November 1998 and certified by the city council in Resolution No. 5854.
2. The establishment of this fee will not create a need for additional water supplies and infrastructure, nor is the construction of water supply facilities entirely dependent upon the establishment of this fee.
3. Prior to action on site-specific projects, subsequent environmental review will be undertaken as necessary pursuant to the California Environmental Quality Act.
4. Development already is taking place in the jurisdictional boundaries of the city and additional water supplies will have to be acquired and infrastructure will have to be constructed to accommodate the new population and businesses regardless of whether this fee is established.
5. The establishment of this fee does not commit the city to any definite course of action and does not dictate how funds will be spent, or in any way narrow the field of options and alternatives available to the city.
R. 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.
S. The fee established by this chapter is in addition to any other fees or charges or taxes, required by law or city code or as a condition of development. (Ord. 912 § 1 (part), 1999)
13.30.020 Definitions.
The following words 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 Title 14 of the Folsom Municipal Code.
“Director” means the public works director.
“Dwelling unit” means a building or part of a building designed for occupancy as a residence by a family.
“Facilities” means the water supplies, improvements, or infrastructure generally identified in the water plan and the water impact fee study, and more specifically determined from time to time by the city council.
“Fee” or “water impact 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 these special funds established pursuant to Section 17.92.030.
“Studies” mean the following plans and studies:
1. City of Folsom General Plan of 1988; and
2. City of Folsom water master plan dated December 1998; and
3. City of Folsom water impact fee study dated November 1, 1999. (Ord. 912 § 1 (part), 1999)
13.30.030 Water impact fee.
There is established a water impact fee which shall be imposed on the construction of all new commercial, industrial and residential buildings that are to be served with water supplies owned and treated by the city. This fee shall be imposed on all new construction within the city, unless such property is otherwise exempt as provided for in Section 13.30.070 of this chapter. 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. (Ord. 912 § 1 (part), 1999)
13.30.040 Administration of water impact fund.
The finance director is directed to establish a special fund entitled the water supply fund. All fees collected pursuant to this chapter shall be deposited in this fund and shall be expended solely to finance the planning, construction, development and acquisition of alternative dry-year water supplies and related facilities, and to finance 10 years of water conservation implementation in the form of water meter retrofitting. (Ord. 912 § 1 (part), 1999)
13.30.050 Payment of water impact 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 building subject to this chapter. (Ord. 912 § 1 (part), 1999)
13.30.060 Amount of water impact fee.
The water impact fee is established in the rate and amount set forth below for each specified type of construction:
|
A. |
Single-family residential (rate per unit): |
$1,148.00 |
|
B. |
Multifamily residential (rate per unit): |
618.00 |
|
C. |
Commercial (rate per acre): |
1,545.00 |
|
D. |
Industrial/office (rate per acre): |
1,545.00 |
(Res. 11233, 2024; Res. 10913, 2022; Ord. 912 § 1 (part), 1999)
13.30.070 Exemptions.
A. No fee shall be charged for the construction of the following buildings:
1. Buildings 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;
2. Construction of buildings within a subdivision subject to 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 fees pertaining to water supply costs and facilities, unless amended;
3. Construction of buildings within a subdivision subject to a vested tentative subdivision map under Government Code Section 66498.1 which prohibits the imposition of the fee imposed by this chapter;
4. Additions or modifications to residential buildings;
5. Buildings that will receive water treated by an entity other than the city of Folsom.
B. If any building 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 1/2 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 building 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 buildings shall be subject to the fee established by the chapter. (Ord. 912 § 1 (part), 1999)
13.30.080 Annual fee review.
A. On or about January 1 of each year, commencing in 2001, the city council shall review the estimated cost of and the continued need for additional water supplies and facilities as set forth in the water impact fee study, and the relationship between such need and the impacts of the various types of development pending or anticipated for which this fee is charged. Such review shall consider input from city staff and any other public input before determining whether an adjustment in the current water impact fee is appropriate for the subsequent calendar year. The city may also consider the recommendation of a committee composed of representatives of the city and developers in the community.
B. The city council recognizes that the city may receive additional funding for the acquisition of alternative dry-year water supplies and for 10 years of water conservation implementation in the form of water meter retrofitting, identified in the water impact fee study. To the extent the city receives such additional funding, staff shall present a report to the city council within 60 days of the receipt of such funding identifying: (1) the amount of such funding; and (2) whether such funding has resulted in a net increase in the available funds for the acquisition of alternative dry-year water supplies and for 10 years of water conservation implementation in the form of water meter retrofitting, identified in the water impact fee study. In the event that there is a net increase, the city council shall thereafter determine an appropriate credit against the water impact fee for new development and the fee shall be adjusted in that amount. (Ord. 912 § 1 (part), 1999)
13.30.090 Inflationary adjustments.
The fee established by this chapter shall automatically be adjusted on July 1st of each 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 on or about June 30th of each year or as soon as the information is available. (Ord. 912 § 1 (part), 1999)
13.30.100 Adoption in compliance with improvement plan.
When the monies in the water impact fund are disbursed for use, the fees shall be used only to finance the planning, construction, development and acquisition of alternative dry-year water supplies and related facilities, and to finance 10 years of water conservation implementation in the form of water meter retrofitting. (Ord. 912 § 1 (part), 1999)
13.30.110 Authorization of credits.
Whenever a person constructs facilities authorized by this chapter, in accordance with improvement plans approved by the Director, then such person may be entitled to a credit against any fees or charges due pursuant to Chapter 13.30 of this code, subject to the provisions of this chapter. (Ord. 912 § 1 (part), 1999)
13.30.120 Amount of credits.
Unless otherwise set forth in this chapter, the amount of credits authorized for the construction of facilities shall be determined by the Director based on recent competi-
tive bids, but shall not exceed the actual cost of construction. (Ord. 912 § 1 (part), 1999)
13.30.130 Procedure for credits.
A. Any person desiring credits for the construction of facilities shall, prior to approval of improvement plans for the facilities, execute an agreement with the city authorizing credits. Agreements for credits in an amount of $25,000 or greater must be approved by the city council. Agreements for credits in an amount less than $25,000 may be approved by the city manager or his/her designee.
B. Tentative credits shall be allocated prior to the acceptance of facilities, so that they may be subtracted from fees at the time fees are paid. Credits shall be adjusted as necessary at the time the facilities are accepted by the city. The person receiving tentative credits shall agree that if the facilities are not accepted by the city, all tentative credits allocated shall be reimbursed to the city within 60 days of notice of non-acceptance of the facilities. The person receiving tentative credits shall further agree that if tentative credits allocated exceed the final credits, the excess amount shall be reimbursed to the city within 60 days of notice of such amount. (Ord. 912 § 1 (part), 1999)
13.30.140 Apportionment of credits.
A. Except as set forth in this section, credits shall only be applied against fees and charges due as a result of new construction within the subdivision for which the construction of facilities was required or authorized, and credits shall be equally apportioned to all lots within the subdivision. Credit agreements may not otherwise be assigned without the consent of the city council.
B. Credits may only be apportioned to parcels not within the subdivision if within 30 days from the date that credits are authorized the director determines:
1. The parcel or parcels on which credit is sought are contiguous holdings of an individual or firm at the time construction of facilities is begun;
2. Only credits in excess of the amount of the fees which would have been due on such subdivision or parcel and each subsequent unit thereof within such contiguous holding may be apportioned to other contiguous parcels;
3. The parcel or parcels to which such credits are to be apportioned must be served by the facilities for which credits are authorized;
4. An agreement has been executed between the owner of the contiguous parcels and the city establishing the amount to be credited to each parcel prior to improvement plan approval for the initial parcel.
C. When credits are apportioned, the credit amounts shall be based on the rates in effect on the date improvement plans are approved for the parcel to which credits have been apportioned. (Ord. 912 § 1 (part), 1999)
13.30.150 Criteria for reimbursement.
Except where specifically excluded, whenever credits are authorized for the construction of facilities pursuant to Chapter 13.30, and the credit amount exceeds the amount of the fees due pursuant to Chapter 13.30, the city shall reimburse the person entitled to such credits in accordance with the provisions of this chapter. (Ord. 912 § 1 (part), 1999)
13.30.160 Procedure for reimbursement.
Excess credits shall only be reimbursed pursuant to the terms of a reimbursement agreement executed by the city and the person entitled to such credits. (Ord. 912 § 1 (part), 1999)
13.30.170 Reimbursement agreements.
A. The reimbursement agreement shall include the following terms and conditions:
1. The amount of excess credit to be reimbursed;
2. The schedule for such reimbursement. Such schedule shall not exceed 5 years from the date of acceptance of the facilities by the city, unless funds are not available, as determined by the finance director. If funds are not available when reimbursement is due, payment shall be postponed to the following year;
3. Reimbursement of excess credits of $10,000 or less shall be made within 45 days of the acceptance of the facilities by the city;
4. No prepayment penalties are allowed;
5. Interest on the unpaid balance shall be paid annually in December at the net city treasury pool rate for the prior fiscal year. Interest shall not begin to accrue, however, until 90 days after the facilities are accepted by the city;
6. The reimbursement agreement may only be assigned by a written amendment to the agreement executed by the finance director, the assignor(s) and the assignee(s);
7. Notwithstanding any provisions to the contrary, excess credit shall not be reimbursed unless and until the facilities are accepted by the city;
8. Notwithstanding any provisions to the contrary, excess credits shall not be reimbursed until all fees and charges required by Chapter 13.30 have been paid for all parcels on which credit is sought and for all contiguous lots, parcels or real property owned by or recorded as the property of the same person at the time construction of facilities is begun.
B. Except as authorized by this section, reimbursement agreements must be approved by the city council. If the city council has previously approved a credit agreement with a party, the city manager may approve a reimbursement agreement with the same party if the amount of the reimbursement does not vary from the amount of the credit agreement by more than 10 percent. Reimbursement agreements for amounts less than $25,000 may be approved by the city manager or his/her designee. (Ord. 912 § 1 (part), 1999)
13.30.180 Audit.
Whenever an audit is requested to determine whether a fee or charge levied by the city exceeds the amount reasonably necessary to cover the cost of any product or service provided, the city manager shall estimate the cost of the audit and require a deposit in the full amount estimated. If the actual cost is less than estimated, the difference shall be refunded to the person requesting the audit. If the actual amount is greater than the deposit, the person requesting the audit shall pay the full cost and the difference shall be due and payable upon notice to the person requesting the audit. This shall apply to any audit requested pursuant to Government Code sections 54985, 66023, and any other authority for an audit of the city’s fee program. (Ord. 912 § 1 (part), 1999)
13.30.190 Refund.
A. If 5 years after collection any portion of a fee collected pursuant to this chapter is unexpended or uncommitted, the city shall review the fee and the purpose for which it was charged, and make a determination and finding as to the continued need for the fee and the reasonable relationship between the fee and the purpose for which it is intended. This review and findings shall be made once each fiscal year in any year that there are unexpended or uncommitted fees, beginning with the 5th year after the effective date of this chapter.
B. If the appropriate finding cannot be made, the city shall cause the fees to be refunded to the then current owner of record of the project on which the fee was imposed pursuant to Government Code Sections 66001(d) and 66001(e). (Ord. 912 § 1 (part), 1999)