CHAPTER 12.16
CAPACITY CHARGES AND DEVELOPMENT IMPACT FEES
Section
12.16.060 Credit for redevelopment
12.16.110 Inflation adjustment
12.16.010 PURPOSE.
The purpose of this chapter is to impose fees upon development projects that fully or partially offset the costs of public facilities that are needed to serve the demand created by that development project. The amount of fees will not include the costs attributable to demand generated by existing development.
(Ord. 987, § 2, passed 03-11-2024)
12.16.020 DEFINITIONS.
“Developer” means the owner of land that is to be developed as part of a development project.
“Development project” or “project” means a development or redevelopment project that requires a building permit under this code. An accessory dwelling unit, subject to the requirements of Section 65852.2 of the California Government Code, is not itself a project for purposes of this definition, and if a project includes an accessory dwelling unit, that accessory dwelling unit shall not be treated as being part of the project for purposes of this chapter.
“Fee” means a fee imposed pursuant to § 12.16.030.
(Ord. 987, § 2, passed 03-11-2024)
12.16.030 FEES IMPOSED.
Except as otherwise provided in this chapter, the following fees are hereby imposed upon the developer of each development project in the City as a condition of development:
Water facilities fee.
Sewer facilities fee.
Storm drainage facilities fee.
Police facilities fee.
Fire facilities fee.
(Ord. 987, § 2, passed 03-11-2024)
12.16.040 RATE.
The rate of each fee shall be set by the City Council by ordinance or resolution.
(Ord. 987, § 2, passed 03-11-2024)
12.16.050 PAYMENT.
A. Except as otherwise provided in this section, the fees required by this chapter shall be paid prior to the issuance of a building permit for the development project. The City shall not issue a building permit for a development project unless the fees have been paid. If a development project does not require a building permit, the fees required by this chapter shall be paid prior to the earliest of (1) submission of an application for utility service, (2) issuance of a certificate of occupancy, (3) issuance of a final inspection certificate and/or (4) the date of first use of the development project (and the City shall not commence new utility service, issue a certificate of occupancy, issue a final inspection certificate, or issue a business license for the occupant of the development project until the fees have been paid).
B. The fees for a development project shall be calculated at the rates in effect as of the date the developer submits a complete and adequate application for a building permit for the development project, or, if there is no building permit, the date on which the fees are paid.
C. Notwithstanding the requirements of subsection (A) of this section, the City will, upon request of a developer, enter into a contract with the developer for the delayed collection of all or part of the fees for a development project. All fees collected on a delayed basis in connection with a building permit shall be due on a lump-sum basis when the first dwelling in the development receives its final inspection or certificate of occupancy, whichever occurs first. The City shall require that the contract meet the requirements of Section 66007(c) of the California Government Code and shall include such other provisions as are useful or necessary to the contract in the judgment of the City Manager. Except with respect to a fee described in subsection (C)(2)(b) of this section, the City shall require the posting of a performance bond or a letter of credit from a federally insured, recognized depository institution to guarantee payment of any fees or charges. The provisions of this subsection (C) apply only if all of the following are true:
1. The development project is a residential development; and
2. Either (a) the fee or portion of the fee for which delayed collection is requested is collected solely in connection with an affordable housing unit described in Section 66007(b)(2)(A) of the California Government Code or (b) the fee or portion of the fee for which delayed collection is requested is not a fee described in Section 66007(b)(1) of the California Government Code.
(Ord. 987, § 2, passed 03-11-2024)
12.16.060 CREDIT FOR REDEVELOPMENT.
Where the development project involves the demolition of an existing structure and its replacement with a new structure, the developer shall be entitled to credits against the fees required by this chapter. A credit shall not be applied for any building or part of a building unless the developer can establish, to the satisfaction of the City, that the building or part of the building was either occupied by a resident (for a residential building) or occupied by a business that conducted actual business activities (for a nonresidential building) during 6 of the 48 months prior to the date on which a complete and adequate building permit application for the development is submitted. A credit shall be calculated separately for each of the 6 fees imposed pursuant to § 12.16.030. Each credit shall be equal to the fee that would be charged for the development of the structure to be demolished, calculated at the rate in effect on the date the developer submits a complete and adequate application for his or her new building permit. In no event shall the amount of the credit reduce any fee for the development project below $0.00, and a credit may not be transferred to any other development project in the City, applied to any of the 6 fees other than the fee for which it was calculated, or used for any purpose other than offsetting fees imposed pursuant to this chapter. For example, a credit calculated based on the rate for the fire facilities fee may not be applied to any fee other than the fire facilities fee.
(Ord. 987, § 2, passed 03-11-2024)
12.16.070 SPECIAL FUNDS.
A. The following accounts or funds shall be established:
Water facilities fee fund.
Sewer facilities fee fund.
Storm drainage facilities fee fund.
Police facilities fee fund.
Fire facilities fee fund.
B. When the City receives payment of a fee pursuant to this chapter, that payment shall be deposited in the appropriate account or fund established pursuant to this section in a manner that avoids any commingling of the fees with other revenues and funds of the City, except for temporary investments.
C. Any interest income earned by moneys in an account or fund established pursuant to this section shall also be deposited in that account or fund.
D. Moneys in the water facilities fee fund shall be expended by the City only for water facilities and improvements.
E. Moneys in the sewer facilities fee fund shall be expended by the City only for wastewater facilities and improvements.
F. Moneys in the storm drainage facilities fee fund shall be expended by the City only for storm drainage facilities and improvements.
G. Moneys in the police facilities fee fund shall be expended by the City only for police vehicles, police equipment, and police facilities and improvements.
H. Moneys in the fire facilities fee fund shall be expended by the City only for fire facilities and improvements.
(Ord. 987, § 2, passed 03-11-2024)
12.16.080 ANNUAL REPORT.
A. For each separate account or fund established pursuant to § 12.16.070, the City shall, within 180 days after the last day of each fiscal year, make available to the public the information required by Section 66006(b)(1) of the California Government Code. The information may be included in the City’s Consolidated Annual Financial Report or any other report prepared by the City, and need not be isolated in a separate document.
B. The City Council shall review the information made available to the public pursuant to subsection (A) of this section at the next regularly scheduled public meeting not less than 15 days after this information is made available to the public.
C. Notice of the time and place of the meeting where the City Council will review the information, including the address where the information may be reviewed, shall be mailed, at least 15 days prior to the meeting, to any interested party who files a written request with the City Clerk for mailed notice of the meeting. Any written request for mailed notices shall be valid for one year from the date on which it is filed unless a renewal request is filed. Renewal requests for mailed notices shall be filed on or before April 1st of each year.
D. For the fifth fiscal year following the first deposit into the accounts or funds established pursuant to § 12.16.070, and every 5 years thereafter, the City Council shall, in connection with its review conducted pursuant to subsection (C) of this section, make each of the findings required by Section 66001(d) of the California Government Code.
(Ord. 987, § 2, passed 03-11-2024)
12.16.090 APPEALS.
A. If a developer believes that one or more of the fees applied to his or her project have been calculated incorrectly by the City, he or she may apply to the City Manager for an adjustment to those fees.
B. Any such appeal must be made in writing, and must include a proposed revised fee amount and an explanation of why the proposed revision constitutes a correct application of the terms of this chapter and of any resolutions or other actions of the City Council that set the rate of the fees or that otherwise affect the fees.
C. The written appeal must be filed no later than the later of (1) 10 days after the date on which the fee becomes due or (2) 10 days after the date on which the fee is paid. An appeal may be filed prior to payment of a fee; however, full payment of the fee, as calculated by the City, shall remain a precondition to issuance of a certificate of occupancy or the conduct of a final inspection (as applicable) unless and until the City Manager makes a determination that revises the amount of the fees.
D. The City Manager shall have 30 days to respond to the appeal after it has been filed, either by determining that the original calculated amount was correct or by determining that a revised amount should be due. The determination of the City Manager is the final determination of the City. If the City Manager does not respond to the appeal within the 30-day period, the appeal shall be deemed finally rejected.
E. If the City Manager determines that the correct fee is less than the amount already paid to the City, the City will refund to the developer the amount of the overpayment.
F. The appeals process set forth in this section applies solely to the case where the developer believes that the City has incorrectly applied the fees according to the City’s ordinances, resolutions, City Council actions, and regulations. It does not apply to any claim that any such approved ordinances, resolutions, actions or regulations exceed the authority of the City or violate state or federal law. This section does not excuse the developer from compliance with Chapter 9 of Division 1 of Title 7 of the California Government Code (beginning with Section 66020) with respect to any matter subject to that chapter of the Government Code.
(Ord. 987, § 2, passed 03-11-2024)
12.16.100 REGULATIONS.
The City Manager may promulgate such interpretive regulations for the application of this chapter as he or she finds necessary or useful.
(Ord. 987, § 2, passed 03-11-2024)
12.16.110 INFLATION ADJUSTMENT.
The rate of each fee may be periodically adjusted to reflect the change in the Construction Cost Index published by the Engineer News-Record (or any successor to such index). However, any such adjustment shall take effect only if approved by the City Council, by resolution, and shall take effect no earlier than 60 days following such approval.
(Ord. 987, § 2, passed 03-11-2024)