Chapter 18. Development Impact Fees

Article 1. General Provisions for Development Impact Fees

Sec. 10-18.101 Authority.

This Chapter is enacted pursuant to authority granted by California Government Code section 66000 et seq, and the general police power of the City. (Ord. 364 § 2 (part), 2001)

This Chapter applies to development impact fees charged as a condition of development to defray all or a portion of the cost of public services, facilities, improvements and amenities. The cost of developing and administering the City’s development impact fee program may be included as a component of the established fees. This Chapter is not intended to and does not apply to regulatory and processing fees; fees required pursuant to a development agreement adopted pursuant to Government Code Title 7, Chapter 4, Article 2.5 commencing with Section 65864; fees collected pursuant to redevelopment agreements in furtherance or for the benefit of a redevelopment project for which a redevelopment plan has been adopted pursuant to the Community Redevelopment Law (Health and Safety Code Division 24, part 1 commencing with Section 33000); or fees collected pursuant to a reimbursement agreement that exceed the developer’s share of a public improvement, or to assessment district proceedings, assessments or taxes. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.103 Fee Credit.

(a) The City Manager or the City Manager’s designee is authorized to credit development fees imposed pursuant to this chapter in consideration for certain on-site and off-site facilities or improvements constructed or paid for by the developer. A developer is entitled to credit for the value of improvements if the improvement is identified in the city’s capital improvement program (CIP) and the developer (1) dedicates an appropriate site, (2) constructs the improvements, (3) finances an improvement by cash, assessment district or Mello-Roos Community Facilities District, or (4) a combination of the above.

(b) A decision regarding a fee credit is appealable pursuant to Section 10-18.105. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.104 Fee Adjustment, Waiver or Finding of Exemption.

(a) The developer of a project subject to a development fee pursuant to this chapter may apply to the City Manager or the City Manager’s designee for an adjustment to or waiver of that fee or for a finding that the project is exempt from the fee. The waiver or adjustment of a fee shall be based upon the absence of any reasonable relationship (1) between the impact of that development on public facilities and either (i) the amount of fee charged or (ii) the type of facilities to be financed or (2) between that development project and the use of the fee or (3) between that development project and the need for related public facilities.

(b) This application shall be made in writing and filed with the City Manager or the City Manager’s designee no later than the time of the issuance of a building permit authorizing construction of new floor area or remodeling to accommodate a change or expansion in use. If no building permit is required, the application shall be filed prior to issuance of any permit or other City approval required for a change in use. The application shall state completely and in detail both the applicant’s factual basis and legal theory for adjustment or waiver. The City Manager or the City Manager’s designee may refuse to consider factual assertions or legal theories not set forth in the written application.

(c) The City Manager or the City Manager’s designee shall consider the application at an informal hearing, which may be continued from time to time, and which shall be held within sixty days after the filing of the complete application. The decision of the City Manager or the City Manager’s designee is appealable pursuant to Section 10-18.105.

(d) The applicant bears the burden of proof in presenting substantial evidence to support the application. The City Manager or the City Manager’s designee shall consider the following factors in his or her determination:

(1) The factors identified in Government Code Section 66001;

(2) The purpose and proposed uses;

(3) The type of the fee;

(4) The type of development;

(5) The relationship between:

(6) The fee’s use and type of development;

(7) The need for the improvements to be paid for by the fee and the type of development; and

(8) The amount of the fee and the portion of it attributable to the development.

(9) The substance and nature of the evidence, including the City’s development fee technical reports, and any technical data submitted by the applicant supporting its request.

(e) Staff time expended in processing the application shall be charged to and paid for by the applicant as a part of the fees chargeable for the project application. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.105 Appeal Procedure.

(a) The City Manager or the City Manager’s designee is responsible for administering, collecting, crediting, adjusting and refunding development fees. A decision by the City Manager or the City Manager’s designee regarding a fee imposed under this ordinance and any implementing resolution shall be appealable in accordance with this section. A person appealing under this section shall have first sought a fee credit under section 1018.103, and adjustment or waiver, or a finding of fee exemption under section 10-18.104. A person seeking judicial review shall first complete an appeal under this section and shall pay all City charges for that appeal.

(b) A person appealing a decision under this Chapter shall file an appeal with the City Manager or the City Manager’s designee, who is responsible for processing the appeal toward a hearing. The appeal shall be in writing, stating completely and in detail the factual and legal grounds, and shall be filed within ten calendar days after the decision being appealed.

(c) The cost of the appeal shall be borne by the applicant, who shall pay a deposit against such costs at the time of filing the appeal. The amount of the deposit shall be established by resolution of the City Council, but may be reduced on a case by case basis when determined by the City Manager or the City Manager’s designee to be substantially in excess of the probable cost of the appeal. Any part of the deposit not required to defray the cost of an appeal shall be refunded to the applicant. If the deposit is not adequate to defray the cost of an appeal, the applicant shall pay the difference between the cost of the appeal and the amount of the deposit. The cost of an appeal must be paid in full prior to issuance of any still to be issued building or occupancy permit or any other City permit that may be required in order to commence a new, changed or expanded land use and shall in any case constitute an enforceable obligation of the developer.

(d) The City Manager or the City Manager’s designee shall preside as the hearing officer for the appeal.

(e) The appointed hearing officer shall set the time and place for the hearing, serve notice on the parties, conduct the hearing, prepare written findings of fact and a written decision on the matter, and shall preserve the complete administrative record of the proceeding. The hearing officer may issue directives, including but not limited to directives that legal briefs be submitted in accordance with an established briefing schedule, to the parties in order to facilitate resolution of the appeal. The hearing officer shall consider relevant evidence presented by the appellant and by the community development department.

(f) The decision of the hearing officer is final and may not be further appealed. It is reviewable by a court under Code of Civil Procedure Section 1094.5. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.106 Refund of Fee.

(a) If a building permit or use permit is canceled or voided and the fees paid have not been committed, the City Manager or the City Manager’s designee may, upon the written request of the applicant and provided that work has not progressed to a point that would permit commencement of a new, changed or expanded use for which a fee would be payable, order return of the fee and interest earned on it less administrative costs.

(b) If a fee is not spent or committed five years or more after it was paid by the developer, the Hercules City Council may authorize a refund to the then owner of the property for which the fee was paid, under Government Code Section 66001.

Sec. 10-18.108 Developer’s Acknowledgment of Fee Adjustment or Wavier.

The City Manager or the hearing officer appointed pursuant to Section 10-18.105 may require as a condition of adjustment or of a finding of exemption that the developer provide a recordable document in a form acceptable to the City Manager or the City Manager’s designee acknowledging the factual basis of the waiver for adjustment and further acknowledging that a subsequent change of facts may result in the requirement that additional fees be paid. (Ord. 364 § 2 (part), 2001)

Article 2. Park and Recreation Facilities Impact Fees

Sec. 10-18.201 Intent and Purpose.

The City Council of the City of Hercules finds and declares:

(a) As a result of increasing regional growth, significant residential development is expected to occur within the City.

(b) The new residents will require additional park and recreation facilities. The park and recreation facilities which serve the existing population will become overburdened if also required to serve all new development.

(c) The general plan specifies the permitted uses of land within the City and places limits on the intensity and density of such use. The City Council has examined the relationship between the land uses and densities permitted under the general plan and the rate and amount of actual and projected development of property within the City. Based upon this examination, the City Council has identified trends in growth and development which enable the City Council to project, with substantial certainty, the magnitude and extent of future development based upon the City’s general plan.

(d) Based, upon projected growth and development permitted under the general plan, a substantial amount of residential development will occur in the City before the City is fully built out.

(e) This anticipated development cumulatively will generate a substantial increase in the demand for park and recreation facilities. New development will thus create an additional burden on the existing facilities and the need for new and expanded facilities.

(f) If additional park and recreation facilities are not provided as development occurs, the existing facilities will not be adequate to serve the community. This could result in adverse impacts, such as overcrowding and overuse of the present park and recreation facilities, injuries related to park and recreation facility use, lack of facilities for youth activities, and lack of facilities or space for community groups and gatherings. This shortage of park and recreation facilities would lead to a deterioration of the public services which the residents in Hercules now enjoy.

(g) To prevent these undesirable consequences, the capacity of the City’s park and recreation facilities must be built at a rate which would accommodate the expected growth in the City.

(h) There is limited land suitable for the development of park and recreation facilities. The City will need to acquire and develop land parcels which are practicably available to satisfy the parks and recreation needs of future residents.

(i) The park and recreation system is a citywide system, providing recreation opportunities to the entire community.

(j) Although the demand for public services generated by an individual development project may not be, in and of itself, sufficient to overload the City’s existing park facilities, the unmitigated cumulative impact of all new development would result in an unacceptable burden.

(k) It is the policy of the City that new development pay for the cost of new parks and recreation facilities and improvements to existing parks and recreation facilities which are necessary to accommodate the demands generated by new development. In the absence of a park and recreation facilities fee, existing and future sources of revenue will be inadequate to fund a substantial portion of the improvements which are necessary to avoid an unacceptable deterioration of public services.

(1) All types of residential development require and use the park and recreation facilities. The estimates of public demands for park and recreation facilities generated by a particular development are based on the average number of people residing in that particular type of residential development.

(m) In its evaluation, the City Council has taken into consideration, among other things, the Comprehensive Impact Fee Study for the City of Hercules dated February 21, 2001 (the “Comprehensive Impact Fee Study”). That Comprehensive Impact Fee Study and, in particular, the portion dedicated to Park and Recreation Facilities identifies the standards for development of parks and recreation facilities, the estimated demand for new facilities in the future, and the proportion of that future demand which will be generated by new development. The City Council finds that these facts and that study represent a reasonable estimate of the needed facilities and costs thereof.

(n) A fair and equitable method of securing some of the revenues necessary to construct the required park and recreation facilities is to impose a park and recreation facilities fee based on the extent to which new development generates demand for additional park and recreation facilities.

(o) The Comprehensive Impact Fee Study identifies the amount of park land and type and cost of park and recreation facilities for that land necessary to accommodate future growth.

(p) The park and recreation facilities that will be constructed with funds generated by the Park and Recreation Facilities Impact Fee will significantly benefit the community in that the adverse impacts and inconvenience which would otherwise be caused by a declining level of public parks and recreation facilities will be substantially mitigated. Persons who undertake new development in the City are benefitted by a desirable community and the City’s reputation for providing, and ability to provide, a variety of well-run public services, including park and recreation facilities. Such facilities make the community a safe and appealing place to live and to work.

(q) Pursuant to Government Code Section 66001, and based upon the terms of this Article, the City Council finds that:

(1) The purpose of this fee is to provide adequate park and recreation facilities to serve new development within the City.

(2) The fee will be used for acquisition, construction, improvement and/or development of park and recreation land and facilities, including but not limited to, existing and needed neighborhood parks, community parks, teen centers, child care facilities, cultural arts centers, community facilities and other park and recreational facilities necessary to accommodate new residential development.

(3) Completed parks and recreation facilities are needed by all types of residential development, based upon the average number of City residents.

(4) The amount of the fee bears a fair and reasonable relationship to each residential development’s burden on and benefit from the City’s park and recreational facilities to be funded by the fee, and shall be based on the following considerations:

A. New development will pay only for those park and recreation facilities which serve the demands which will be created by new development.

B. Each type of residential development shall contribute to the needed park facilities in proportion to the average number of residents for the particular type of dwelling unit.

C. The amount of the fee is calculated based upon the need for park facilities once development occurs, and the per person cost for those facilities.

(r) Periodic review, and possible revision, of the fee resolution adopted by the City Council under this Article will allow for the adjustment of the fee to ensure that the fee remains a fair and equitable method for the distribution of costs to construct park and recreation facilities necessary to accommodate the need generated by new development.

(s) The Comprehensive Impact Fee Study for the City of Hercules dated February 21, 2001 and future City Council-approved amendments thereto are approved, incorporated here by reference, and provide the technical information and reasoning upon which the fee is based. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.202 Definitions.

In this Article:

(a) Park Facilities means land, facilities and improvements provided for acquisition, construction, improvement and/or development of park land and facilities, including but not limited to, existing and needed neighborhood parks, community parks and all facilities and amenities reasonably related thereto.

(b) Recreation Facilities means land, facilities and improvements provided for acquisition, construction, improvement and/or development for recreation purposes, including, but not limited to child care facilities, community centers, swim centers, teen centers, cultural art centers and all other land, facilities and improvements commonly associated with recreation.

(c) Comprehensive Impact Fee Study for the City of Hercules refers to the report of that title dated February 21, 2001, prepared by the City of Hercules and Muni Financial and any future Council-approved amendments to it.

(d) Director means the City Manager or the City Manager’s designee.

(e) Permit means a building or use permit authorizing the development or placement of a residential unit or a change from one land use category to another.

(f) Single family dwelling means a detached one-family dwelling unit at densities less than six per acre, excluding mobile homes.

(g) Multi-family dwelling means all attached single family dwellings such as townhouses, condominiums, duplexes, apartments, dormitories and the like, and mobile homes or trailers. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.203 Fee Requirement.

(a) General. The amount of the park and recreation facilities impact fee shall be established by City Council resolution. The amount of the fee is based upon the following considerations:

(2) Development will pay for park and recreation facilities only where there is a reasonable relationship between the park and recreation facilities demands created by that development and the facilities provided.

(3) Each type of residential development shall contribute to the needed park and recreation facilities in proportion to the use of the facilities, based upon the average number of persons for each residential dwelling type.

(b) Type of development. The categories of residential development for which the fee will be charged are listed below.

(1) Single Family Dwelling;

(2) Multi Family Dwelling.

(c) Park and recreation facilities fee based only on impacts of new development. The fee shall be based on the cost of the park and recreation facilities attributable to new development as set forth in the Comprehensive Impact Fee Study, and do not and shall not include the costs to alleviate existing deficiencies in the City’s park and recreation facilities, if any exist.

(d) Amount of fee. The amount of the fee shall be established by City Council resolution and, may be amended by resolution from time to time to reflect changes in the estimated cost of park and recreation facilities to be financed. The fee shall be determined in accordance with the method set forth in the Comprehensive Impact Fee Study. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.204 Exemptions.

No fee is due if a park and recreation facilities fee was previously paid in full for a particular property. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.205 Time of Payment.

The time for payment of the park and recreation facilities fee shall be established by the City Council resolution which sets the amount of the fee, and shall conform to the requirements of Government Code Section 66007. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.206 Use of Fee.

The City shall deposit the fees collected under this Article in a special fund, the Park and Recreation Facilities Impact Fee Fund, designated for park and recreation facilities improvements. The fees and any interest earned shall be used only to provide park and recreation facilities in accordance with standards stated in the City’s General Plan, the Hercules Capital Improvement Program or the budget of the City, to reimburse the City for its reasonable costs in administering this Article, or to reimburse the City for such construction if funds were advanced by the City from other sources, or a combination of the above. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.207 Annual Review.

The City Council shall annually review the park and recreation facilities impact fee authorized by this Article, implementing resolutions and supporting documentation, including the Comprehensive Impact Fee Study and/or any other study the City may authorize with regard thereto and may, based on such review, institute by resolution an amended park and recreation facilities impact fee. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.208 General Provisions Apply.

All of the provisions of Article 1 apply to the park and recreation facilities impact fee. (Ord. 364 § 2 (part), 2001)

Article 3. General Public Facilities Impact Fee

Sec. 10-18.301 Intent and Purpose.

(a) As a result of increasing regional growth, significant residential, commercial and industrial development is expected to occur within the City.

(b) City government requires buildings and equipment for City employees to serve the public. The City now has or will need certain general public facilities including City administration buildings, a corporation yard for public works, senior centers, libraries and other facilities needed to serve the public.

(c) The general plan specifies the permitted uses of land within the City and places limits on the intensity and density of such use. The City Council has examined the relationship between the land uses and densities permitted under the general plan and the rate and amount of actual development of property within the City. Based upon this examination, the City Council has identified trends in growth and development which enable the Council to project, with substantial certainty, the magnitude and extent of future development based upon the City’s general plan.

(d) Based upon projected growth and development permitted under the general plan, a substantial amount of residential, commercial and industrial development will occur in the City before the City is fully built out.

(e) This anticipated development cumulatively will generate a substantial increase in the need for City services and the corresponding general public facilities necessary to provide those services. New development will thus create an additional burden on the existing general public facilities.

(f) If additional general public facilities are not added as development occurs, the existing facilities will not be adequate to serve the community. This could result in adverse impacts, such as inadequate space for City employees, the public works corporation yard, building safety and human services activities, and inadequate libraries. This shortage of general public facilities would lead to a deterioration of the public services which the residents, employees and property owners in Hercules now enjoy.

(g) To prevent these undesirable circumstances, the capacity of the City’s general public facilities must be built at a rate which will accommodate the expected growth in the City.

(h) Although the need for public services generated by an individual development project may not be, in and of itself, sufficient to overload the City’s existing general public facilities, the unmitigated cumulative impact of all new development, including but not limited to development currently submitted for approval, will result in an unacceptable burden.

(i) It is the policy of the City that new development pay for the cost of the improvements to and for new general public facilities which are necessary to accommodate the public services needs generated by new development. In the absence of this ordinance imposing a general public facilities impact fee, existing and future sources of revenue will be inadequate to fund a substantial portion of the general public facilities improvements which are necessary to avoid an unacceptable deterioration of public services.

(j) All types of development require and use public services and the associated general public facilities, although to different degrees. The City Council has examined the extent to which different land uses rely upon the City’s services and general public facilities. In its evaluation, the Council has taken into consideration, among other things, the Comprehensive Impact Fee Study for the City of Hercules dated February 21, 2001 (the “Comprehensive Impact Fee Study”). That Study identifies the estimated use of public services and facilities by all new persons coming to the City, including residents and daytime population. The City Council finds that these use factors represent a reasonable estimate of the actual use of public services and facilities.

(k) A fair and equitable method of securing some of the revenues necessary to construct the required general public facilities improvements is to impose a general public facilities impact fee based on the extent to which new development generates the need for additional general public facilities.

(l) The Comprehensive Impact Fee Study identifies general public facilities improvements which are necessary to accommodate future growth.

(m) The general public facilities improvements that will be constructed or paid for with funds generated by this Article will significantly benefit the contributor in that the adverse impacts and inconvenience which would otherwise be caused by a declining level of public services will be substantially mitigated. Persons who undertake new development in the City are benefitted by a desirable community and the City’s reputation for providing and ability to provide a variety of well-run public services. Such services make the community a safe and appealing place to live and to work.

(n) Pursuant to Government Code Section 66001, and based upon the Comprehensive Impact Fee Study and the terms of this Article, the City Council finds:

(1) The purpose of this fee is to provide adequate general public facilities improvements to serve new development within the City.

(2) The improvements for which the fee can be used are generally identified in the Comprehensive Impact Fee Study.

(3) General public facilities fee improvements are needed by all types of development, based upon (A) the average number of single family and multi-family residences and (B) the average number of daytime employees per square foot for industrial, retail/services, office building space or hotel rooms.

(4) The amount of the fee bears a fair and reasonable relationship to each development’s burden on and benefit from the City’s public services and general public facilities improvements to be funded by the fee, and shall be based on the following considerations:

New development will pay only for those general public facilities which serve new development and are necessary to serve the public services needs which will be created by new development. The cost of improvements needed to alleviate existing deficiencies in general public facilities, if any, are not included in this fee.

Each type of development shall contribute to the needed improvements in proportion to the use of public services and general public facilities anticipated by that type of development. The fee shall be based on the average number of residents or daytime employees for the particular land use, and the estimated average use of particular facilities.

(o) Periodic review, and possible revision, of the fee resolution adopted by the City Council under this Article will allow for the adjustment of the fee to ensure that the fee remains a fair and equitable method for the distribution of costs to construct general public facilities necessary to accommodate the public service needs generated by development.

(p) The Comprehensive Impact Fee Study, and future Council-approved amendments and supplements to it and replacements of it, are approved, incorporated here by reference, and provide the technical information and reasoning upon which the fee is based. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.302 Definitions.

In this Article:

(a) General Public Facilities include general City administration buildings, civic center, City hall, corporation yards for public works, libraries, and other public buildings and facilities. In this Article, the term general public facilities does not include (1) fire stations and equipment, or (2) park and recreation buildings or (3) police facilities, all of which are paid for through other funds.

(b) Comprehensive Impact Fee Study refers to the report of that title dated February 21, 2001, prepared by the City of Hercules and Muni Financial, and any future Council-approved amendments or supplements to it or replacements of it.

(d) Permit means a building or use permit authorizing the development of new floor area or a change from one land use category to another.

(e) Single family residence means a detached one-family dwelling unit at densities less than six per acre, excluding mobile homes.

(f) Multi-family dwelling means all attached single family dwellings such as townhouses, condominiums, duplexes, apartments, dormitories and the like, and mobile homes or trailers.

(g) Industrial includes industrial facilities primarily engaged in manufacturing, processing and assembling goods, business and construction services, passenger and freight transportation, research and development and uses with similar impact on the services or facilities for which the fee is assessed.

(h) Office includes facilities primarily used for professional (for example, medical, legal, engineering, accounting), general commercial, financial, insurance and other offices which do not function primarily for walk-in services, as well as uses with a similar impact on the services or facilities for which the fee is assessed.

(i) Retail/services includes facilities primarily engaged in the retail sale of goods or services to the general public or to small businesses. This category includes stores, automobile dealers, restaurants, hospitals, schools, colleges, banks and uses with a similar impact on the services or facilities for which the fee is assessed.

(j) Hotel includes buildings used for the overnight lodging of guests and uses with a similar impact on traffic volume.

(k) Floor area means the gross floor are of a building or, if a building contains separate uses for which the fee is payable, the floor area of each of those uses. It is determined by calculating the total combined floor area within the building’s exterior walls or, in the case of a building containing more than one use, the area within the walls containing each separate use. Floor area includes the area of an addition where floor area is increased. Parking areas and exterior walkways are not included in this calculation. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.303 Fee Requirement.

(a) General. The amount of the fee shall be established by City Council resolution and is based upon the following considerations:

(1) Development will pay for improvements only where there is a reasonable relationship between the improvements and the capital facilities needs created by the new development.

(2) Each type of development shall contribute to the needed improvements in proportion to the use of the improvements by that type of development.

(b) Type of development. The categories of land uses for which the fee will be charged are listed below. The fee is based on the estimated level of public services needed and used by each type of development.

(1) Single family residence;

(2) Multi-family residence;

(3) Industrial;

(4) Retail/Service;

(5) Office;

(6) Hotel.

(1) The fee for residential construction is for each dwelling unit. There is no fee for remodeling or for an addition to an existing unit not resulting in a new second unit.

(2) The fee for non-residential construction is calculated on a per square foot basis for all new floor area including additions where floor area is increased and on a per room basis for hotels. There is no fee for remodeling or restoration where floor area is improved or replaced but not increased.

(3) A fee is due for a change in land use category. The fee is based on the incremental difference between the applicable fee for the prior use and the fee for the proposed new use.

(d) General Public Facilities Improvements. The fee shall be based on the percentage of the cost of the general public facilities improvements attributable to new development as determined in the Comprehensive Impact Fee Study. The improvements included in the total cost are set forth in that report, and do not and shall not include the costs to alleviate existing deficiencies in the City’s general public facilities, if any exist.

(e) Amount of Fee. The amount of the fee shall be established by City Council resolution and may be amended by resolution from time to time to reflect changes in the estimated cost of the facilities to be financed. The method of establishing the fee is that set out in the Comprehensive Impact Fee Study. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.304 Exemptions.

No fee is due if a general public facilities fee was previously paid in full for a particular property and use. No fee is due for development by entities which are exempt by law from payment of the fee. There are no other exemptions to this fee. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.305 Time of Payment.

The time for payment of the general public facilities impact fee shall be established by the City Council resolution which sets the amount of the fee, and shall conform to the requirements of the Government Code Section 66007. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.306 Use of Fee.

The City shall deposit the fees collected under this Article in a special fund, the General Public Facilities Impact Fee Fund, designated for general public facilities improvements. The fees and any interest earned shall be used only to complete the general public facilities improvements projects specified in the Hercules General Plan, Capital Improvements Program, the Comprehensive Impact Fee Study or the budget of the City, to reimburse the City for its reasonable cost in administering this Article, or to reimburse the City for such construction if funds were advanced by the City from other sources, or a combination of the above. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.307 Annual Review.

The City Council shall annually review the general public facilities impact fee authorized by this Article, implementing resolutions and supporting documentation, including the Comprehensive Impact Fee Study and any amendments or supplements to it or replacements of it and may, based on such review, institute by resolution an amended general public facilities impact fee program. (Ord. 364 § 2 (part), 2001)

Article 4. Police Facilities Impact Fee

Sec. 10-18.401 Intent and Purpose.

(a) As a result of increasing regional growth, significant residential, commercial and industrial development is expected to occur within the City.

(b) The Hercules Police Department provides essential and invaluable police services to residents of the City of Hercules and to its entire business and commercial population.

(c) The general plan specifies the permitted uses of land within the City and places limits on the intensity and density of such use. The City Council has examined the relationship between the land uses and densities permitted under the general plan and the rate and amount of actual development of property within the City. Based upon this examination, the City Council has identified trends in growth and development which enable the Council to project, with substantial certainty, the magnitude and extent of future development based upon the City’s general plan.

(e) This anticipated development cumulatively will generate a substantial increase in the need for police services and the corresponding capital facilities necessary to provide those services. New development will thus create an additional burden on police services and their existing facilities.

(f) Additions to the existing police protection facilities in the City are needed to mitigate the impacts of development and to accommodate future development. All types of development require and use police and other emergency services.

(g) In order to implement the general plan and to promote the health, safety and general welfare of the community, it is necessary that new development pay its pro rata share of its impact upon police services.

(h) The police facilities impact fee is based upon the premise that new development generates additional residents, employees and structures which in turn place an additional burden upon the local police system and facilities and should be expected to pay a share of the new police facilities in accordance with the level of demand generated by that development. The City Council hereby finds:

(1) The purpose of this fee is to provide adequate police protection facilities to serve new development within the City.

(2) The police facilities for which the fee can be used are generally identified in the Comprehensive Impact Fee Study.

(3) Police facilities and related emergency services are needed by all types of development to protect persons and property. The categories of land use for which the fee will be charged are residential, office, retail/service, industrial and hotels.

(4) The amount of the fee shall be established by City Council resolution and shall be based upon the following considerations:

A. New development will pay only for those increases and improvements which serve demands created by new development.

B. Each type of development shall contribute to the needed police protection facilities in proportion to the use of police protection facilities by that type of development.

C. The Comprehensive Impact Fee Study dated February 21, 2001 and prepared by the City of Hercules and Muni Financial and future Council-approved amendments or supplements to it or replacements of it are approved and incorporated by reference. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.402 Definitions.

In this Article:

Director means the City Manager or the City Manager’s designee.

Permit includes a building or use permit authorizing the development of new floor area or a change from one land use category to another.

Police facilities includes land, buildings, improvements and related equipment.

Single family residence means a detached one-family dwelling unit at densities less than six per acre, excluding mobile homes.

Multi-family dwelling means all attached single family dwellings such as townhouses, condominiums, duplexes, apartments, dormitories and the like, and mobile homes or trailers.

Industrial includes facilities primarily engaged in manufacturing, processing and assembling goods, business and construction services, passenger and freight transportation, research and development and uses with a similar impact on the services or facilities for which the fee is assessed.

Office includes facilities primarily used for professional (for example, medical, legal, engineering, accounting), general commercial, financial, insurance, and other offices which do not function primarily for walk-in services as well as uses with a similar impact on the services or facilities for which the fee is assessed.

Retail/service includes facilities primarily engaged in the retail sale of goods or services to the general public or to small businesses. This category includes stores, automobile dealers, restaurants, hospitals, schools, colleges, banks and uses with a similar impact on the services or facilities for which the fee is assessed.

Hotel includes buildings used for the overnight lodging of guests and uses with a similar impact on traffic volume.

Floor area means the gross floor area of a building or, if a building contains separate uses for which the fee is payable, the floor area of each of those uses. It is determined by calculating the total combined floor area within the building’s exterior walls or, in the case of a building containing more than one use, the area within the walls containing each separate use. Floor area includes the area of an addition where floor area is increased. Parking areas and exterior walkways are not included in this calculation.

Comprehensive Impact Fee Study refers to the report of that title dated February 21, 2001, and prepared by City of Hercules and Muni Financial. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.403 Fee Requirement.

(a) General.

(1) Permit. A person who applies for a permit to construct a residential unit or to construct or add to a nonresidential building shall pay to the City a police facilities fee prior to issuance of the permit.

(2) Change of use. A person who receives a permit authorizing a change of use within a building shall pay to the City a police facilities fee prior to issuance of the permit.

(3) Amount of fee. The amount of the police facilities fee shall be determined by resolution of the City Council and may be adjusted by resolution from time to time to reflect changed estimates in the cost of the facilities to be financed.

(b) Type of Development. The categories of land uses for which the fee will be charged are:

(1) Residential includes Single Family and Multi-Family;

(2) Industrial;

(3) Office;

(4) Retail/Service;

(5) Hotel.

(c) Facilities. The fee shall be based on the percentage of the cost of the new or already provided police facilities needed to serve new development as determined in the Comprehensive Impact Fee Study as amended, supplemented or replaced from time-to-time. The new or already provided police facilities included in the total cost are identified in the Comprehensive Impact Fee Study.

(d) Method of Establishing Fee. The method for establishing fees for each category of land use is that set out in the Comprehensive Impact Fee Study.

(e) Residential Fees. The fee for residential construction shall be charged for each new dwelling unit. No fee is charged for remodeling only or for an addition to an existing unit which does not result in a new second unit.

(f) Non-residential Fees. The fee for nonresidential construction shall be charged on a per square foot basis for all new gross floor area, including an addition where floor area is increased. No fee is charged for remodeling or restoration only, where the floor area is improved or replaced but not increased.

(g) Change of Land Use. A fee is due for a change in land use category. The fee is based on the incremental difference between the applicable fee for the prior use and the fee for the proposed new use. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.404 Exemptions.

No fee is due if the police facilities impact fee or a fee substantially similar to the police impact fee was previously paid in full for a particular property and use. No fee is due for development by entities which are exempt by law from payment of the fee. There are no other exemptions to the police facilities fee. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.405 Time of Payment.

The time of payment for the police facilities fee shall be established by the resolution which sets the amount of the fee, and shall conform to the requirements of Government Code Section 66007. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.406 Use of Fee.

The City shall deposit the fees collected under this Article in a special fund, the Police Facilities Impact Fee Fund, designated for police facilities. The fees and any interest earned shall be used only:

To complete the police facilities projects specified in the Comprehensive Impact Fee Study, the Hercules Capital Improvement Program, the budget of the City or otherwise permitted by law, or to reimburse the City for such completion if funds were advanced by the City from other sources;

To reimburse developers who have been required or permitted to install such police facilities to the extent that the cost of such installation exceeds the fee the developer would have otherwise been required to pay under this Article;

To reimburse the City for its reasonable costs in administering this Article. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.407 Annual Review of Police Facilities Impact Fee Program.

The City Council shall annually review the police facilities fee authorized by this Article, implementing resolutions and supporting documentation, including the Comprehensive Impact Fee Study and may, based on such review, institute by resolution an amended police facilities fee program. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.408 General Provisions Apply.

The provisions of Article 1 apply to this police facilities impact fee. (Ord. 364 § 2 (part), 2001)

Article 5. Fire Facilities Impact Fees

Sec. 10-18.501 Intent and Purpose.

The City Council of the City of Hercules declares:

(a) Adequate fire-fighting facilities are needed to protect the health, safety and general welfare of its citizens and to protect property in the City;

(b) The Rodeo-Hercules Fire Protection District provides fire protection, fire suppression, rescue, emergency medical aid, hazardous material control and disaster response, and coordination services for the City of Hercules and for the Town of Rodeo;

(c) Although each fire station generally serves a particular geographic area, the stations also serve other areas whenever necessary. The stations are part of an integrated system serving the entire City of Hercules as well as the Town of Rodeo;

(d) The Hercules General Plan includes goals and objectives related to providing adequate fire protection. By including these in the general plan, the City intended to inform residents and developers of City plans for fire services and make fire station locations a part of the land use planning process. The general plan establishes a level of service (LOS) goal for emergency calls. The general plan recommends consideration of a funding mechanism for new facilities. All new development within the City of Hercules is required by law to be consistent with the general plan. The approval of such development must assure that the general plan, and its policies relating to fire facilities, will be implemented.

(e) New development within the City will create an additional burden on existing fire protection facilities;

(f) Additions to existing fire protection facilities in the City are needed to mitigate the impacts of development and to accommodate future development;

(g) All types of development require and use fire and other emergency services;

(h) In order to implement the general plan and to promote the health, safety and general welfare of the community, it is necessary that new development pay a fee in lieu of the installation of the necessary improvements to the fire protection system;

(i) Although the Rodeo-Hercules Fire Protection District currently serves both the City of Hercules and the Town of Rodeo, the fire protection facilities to be paid for by the fire facilities fee will be required to serve Hercules even if Rodeo is no longer served.

(j) The fire facilities impact fee is based upon the premise that new development generates additional residents, employees and structures which in turn place an additional burden upon the local fire protection system and should be expected to pay a share of the new fire protection facilities in accordance with the level of demand generated by that development. The City Council hereby finds:

(1) The purpose of this fee is to provide adequate fire protection facilities to serve new development within the City.

(2) The fire protection facilities for which the fee can be used are generally identified in the Comprehensive Impact Fee Study.

(3) Fire protection facilities and related emergency services are needed by all types of development to protect persons and property. The categories of land use for which the fee will be charged are residential, office, retail/service, industrial and hotel.

(4) Based upon the fire department’s records of past responses, all types of development create the need for fire protection and emergency services.

(5) The amount of the fee shall be established by City Council resolution and shall be based upon the following considerations:

A. New development will pay only for those increases and improvements which serve demands created by new development.

B. Each type of development shall contribute to the needed fire protection facilities in proportion to the use of fire protection facilities by that type of development.

The Comprehensive Impact Fee Study and future council-approved amendments and supplements to it and replacements of it are approved and incorporated by reference. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.502 Definitions.

In this Article:

(a) Director means the City Manager or the City Manager’s designee.

(b) Permit includes a building or use permit authorizing the development of new floor area or a change from one land use category to another.

(d) Single family residence means a detached one-family dwelling unit as densities less than six per acre, excluding mobile homes.

(e) Multi-family dwelling means all attached single family dwellings such as townhouses, condominiums, duplexes, apartments, dormitories and the like, and mobile homes or trailers.

(f) Industrial includes facilities primarily engaged in manufacturing, processing and assembling goods, business and construction services, passenger and freight transportation, research and development and uses with a similar impact on the services or facilities for which the fee is assessed.

(g) Office includes facilities primarily used for professional (medical, legal, engineering, accounting), general commercial, financial, insurance, and other offices which do not function primarily for walk-in services as well as uses with a similar impact on the services or facilities for which the fee is assessed.

(h) Retail/service includes facilities primarily engaged in the retail sale of goods or services to the general public or to small businesses. This category includes stores, automobile dealers, restaurants, hospitals, schools, colleges, banks and uses with a similar impact on the services or facilities for which the fee is assessed.

(i) Hotel includes buildings used for the overnight lodging of guests and uses with a similar impact on traffic volume.

(j) Floor area means the gross floor area of a building or, if a building contains separate uses for which the fee is payable, the floor area of each of those uses. It is determined by calculating the total combined floor area within the buildings’s exterior walls or, in the case of a building containing more than one use, the area within the walls containing each separate use. Floor area includes the area of an addition where floor area is increased. Parking areas and exterior walkways are not included in this calculation.

(k) Comprehensive Impact Fee Study refers to the report of that title dated February 21, 2001 and prepared by City of Hercules and Muni Financial and all amendments, supplements and replacements thereof from time to time. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.503 Fee Requirement.

(a) General.

(1) Permit. A person who applies for a permit to construct a residential unit or to construct or add to a nonresidential building shall pay to the City a fire facilities impact fee prior to issuance of the permit.

(2) Change of use. A person who receives a permit authorizing a change of use within a building shall pay to the City a fire facilities fee prior to issuance of the permit.

(3) Amount of fee. The amount of the fire facilities fee shall be determined by resolution of the City Council and may be adjusted from time to time to reflect changed estimates in the cost of the facilities to be financed.

(b) Type of Development. The categories of land uses for which the fee will be charged are:

(1) Residential;

(2) Industrial;

(3) Office;

(4) Retail/Service;

(5) Hotel.

(c) Facilities. The fee shall be based on the percentage of the cost of the new or already provided fire facilities needed to serve new development as determined in the Comprehensive Impact Fee Study.

(d) Method of Establishing Fee. The method for establishing fees for each category of land use is that set out in the Comprehensive Impact Fee Study.

(f) Non-residential Fees. The fee for nonresidential construction shall be charged on a per square foot basis for all new gross floor area, including an addition where floor area is increased. No fee is charge for remodeling or restoration only, where the floor area is improved or replaced but not increased.

Sec. 10-18.504 Exemptions.

No fee is due if the fire facilities fee or a fee substantially similar to the fire impact fee was previously paid in full for a particular property and use. No fee is due for development by entities which are exempt by law from payment of the fee. There are no other exemptions to the fire facilities fee. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.505 Time of Payment.

The time of payment for the fire facilities fee shall be established by the resolution which sets the amount of the fee, and shall conform to the requirements of Government Code Section 66007. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.506 Use of Fee.

The City shall deposit the fees collected under this Article in a special fund, the Fire Facilities Impact Fee Fund, designated for fire protection facilities. The fees and any interest earned shall be used only:

To acquire, construct, complete, remodel or expand the fire facilities projects specified in the Hercules General Plan, the Comprehensive Impact Fee Study, the Capital Improvements Program or the budget of the City, or to reimburse the City for such completion if funds were advanced by the City from other sources;

To reimburse developers who have been required or permitted to install such fire protection facilities to the extent that the cost of such installation exceeds the fee the developer would have otherwise been required to pay under this Article;

To reimburse the City for its reasonable costs in administering this Article. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.507 Annual Review of Fire Facilities Impact Fee Program.

The City Council shall annually review the fire facilities fee authorized by this Article, implementing resolutions and supporting documentation, including the Comprehensive Impact Fee Study, and may, based on such review, institute an amended fire facilities fee program. (Ord. 364 § 2 (part), 2001)

Sec. 10-18.508 General Provisions Apply.

The provisions of Article 1 apply to this fire facilities impact fee. (Ord. 364 § 2 (part), 2001)

Article 6. Transportation Facilities Impact Fees

Sec. 10-18.601 Intent and Purpose.

The City Council of the City of Hercules finds and declares that:

(a) As a result of increasing regional growth, significant residential, commercial and industrial development is expected to occur within the City.

(b) The general plan specifies the permitted uses of land within the City, places limits on the intensity and density of such use, and includes policies to improve the safety of roadway facilities and to provide for pedestrian and bicycle infrastructure. The City Council has examined the relationship between the land uses and densities permitted under the general plan and the rate and amount of actual development of property within the City. Based upon this examination, the City Council has identified trends in growth and development which enable the council to project, with substantial certainty, the magnitude and extent of future development based upon the City’s general plan.

(c) Based upon projected growth and development permitted under the general plan, a substantial amount of residential, commercial and industrial development will occur in the City before the City is fully built out.

(d) New development in Hercules will increase the demand for all modes of travel (including walking, biking, transit, automobile and truck/goods movement), and thus will increase the need for improvement to transportation facilities, including but not limited to vehicular, transit, bicycle, and pedestrian infrastructure and improvements. This anticipated development cumulatively will generate a substantial increase over existing levels of vehicular traffic, and transit, bicycle and pedestrian travel. This increase in multi-modal travel will result in traffic volumes which exceed the capacity of the existing City-wide circulation system to provide acceptable levels of service and safe transportation facilities. New development within the City will thus create an additional burden on the existing transportation facilities.

(e) If additional traffic-related as well as transit, bicycle, and pedestrian transportation facilities are not added as development occurs, the existing transportation facilities will not be adequate to serve the community consistent with the general plan. This could result in adverse impacts, such unacceptable levels of congestion on streets and at intersections, traffic accidents, air pollution, noise and restricted access for emergency vehicles. This would lead to a deterioration of the level of service for vehicles and deterioration of other transportation facilities, such as transit, bicycle and pedestrian facilities, which the residents, employees, and property owners in Hercules now enjoy.

(f) To prevent these undesirable consequences, the capacity of the City-wide transportation facilities must be built at a rate which will accommodate the expected growth in the City.

(g) Although the traffic volume generated by an individual development project may not be, in and of itself, sufficient to overload the existing City-wide transportation facilities, the cumulative impact of all new development, including development currently approved or submitted for approval, will result in unacceptable levels of traffic congestion.

(h) It is the policy of the City that new development pay for the cost of improvements to the City-wide circulation system which are necessary to accommodate the traffic volumes generated by new development. In the absence of this Article imposing a traffic facilities fee, existing and future sources of revenue will be inadequate to fund a substantial portion of the transportation facilities which are necessary to avoid unacceptable levels of congestion and the related adverse impacts.

(i) All types of urban development require and use transportation facilities. The City Council also has examined the rates at which different land uses generate traffic. The City Council, in evaluating these traffic generation rates, has taken into consideration, among other things, other traffic-related studies and reports prepared by or on behalf of the City. The City Council finds that these traffic generation rates represent a reasonable estimate of the actual impact on the City’s circulation system.

(j) A fair and equitable method of securing some of the revenues necessary to construct the required improvements to the transportation facilities is to impose a transportation impact fee based on the extent to which new development generates additional traffic volumes and impacts to the transportation facilities.

(k) The 2019 Hercules Transportation Impact Fee Nexus Study specifically identifies transportation facility improvements which are necessary to accommodate future growth. These improvements are and will be incorporated in the City’s Capital Improvement Program (CIP).

(l) The circulation system improvements that will be constructed with funds generated pursuant to the article will significantly benefit the contributor in that the adverse impacts, such as noise, air pollution, delay, accidents, increased fuel consumption, harm to the local economy, and inconveniences caused by traffic congestion will be substantially mitigated. Persons who undertake new development in the City are benefited by a desirable community and the City’s reputation for providing, and ability to provide, an adequate transportation system.

(m) Pursuant to Government Code Section 66001, and based upon the 2019 Hercules Transportation Impact Fee Nexus Study and the terms of this Article, the Council finds that:

(1) The purpose of the fee imposed pursuant to this Article is to provide adequate transportation improvements to serve new development within the City.

(2) The improvements for which the fee will be used are identified in the Hercules Transportation Impact Fee Nexus Study, as approved in 2019, summarized below and supported by the Hercules General Plan, to be contained in the City’s Capital Improvements Program (CIP).

1.	Signalize intersection of San Pablo and Tsushima
2.	Reconfigure Sycamore Ave cross section from Willow to San Pablo
3.	San Pablo/Jon Muir Parkway to I-80 ramp expansion
4.	Intersection improvements at Willow and Sycamore
5.	Add 3rd NB through lane to San Pablo Ave at Sycamore
6.	Install pedestrian activated signal at Market Hall crosswalk
7.	Upgrade or add ADA curb ramps
8	Hercules Creekside trail from Alfred Noble to Sycamore
9.	Multi-use path at Market Hall
10.	Pedestrian connection along Palm between Sycamore and Willow
11.	Bay Trail gap closure and lighting
12.	Expand bicycle network
13.	Add sidewalk along Willow Ave to Hercules Transit Center
14.	Improve pedestrian connections to Hercules Transit Center from Creekside Shopping Center along Sycamore to Willow
15.	Extend sidewalk connections to Rodeo
16.	Complete bicycle facilities between Mariner’s Pointe and HTC
17.	Add lighting to Refugio Valley Trail
18.	Remove crosswalk at north leg of San Pablo and Sycamore
19.	Provide bus shelters along San Pablo
20.	Parking for Intermodal Transit Center
21.	Complete Intermodal Transit Center/Rail Station (RITC)

(3) All types of urban development require and use the transportation system.

(4) The amount of the fee imposed pursuant to this Article shall bear a fair and reasonable relationship to each development’s burden on and benefit from the City-wide circulation system improvements to be funded by the traffic impact fee, and shall be based on the following considerations:

A. New development will pay only for those improvements which serve new development or which are necessary to reduce impacts to the transportation facilities which would otherwise be created by new development. The cost of improvements needed to alleviate existing transportation system deficiencies are not included in this fee.

B. Each type of development shall contribute to the needed improvements in proportion to the use of improvements by that type of development, based upon traffic generation and trip length characteristics of various land uses to those same rates for a typical single-family residential unit (referred to as a DUE—dwelling unit equivalent) for each type of land use category.

(n) Periodic review, and possible revision, of the resolution adopted by the City Council under this Article will allow for the adjustment of the fee to ensure that the fee remains a fair and equitable method for the distribution of costs to construct circulation system improvements necessary to accommodate traffic volumes generated by development.

(o) The 2019 Hercules Transportation Impact Fee Nexus Study prepared by DKS for the City of Hercules, a copy of which is on file with the City Clerk, and future Council-approved amendments to it, are approved, incorporated herein by reference and provide the technical information on which the fee imposed pursuant to this Article is based. (Ord. 518 § 1 (Exh. A (part)), 2019: Ord. 364 § 2 (part), 2001)

Sec. 10-18.602 Definitions.

In this Article:

(a) “Director” means the City Manager or the City Manager’s designee;

(b) “2019 Hercules Transportation Impact Fee Nexus Study” is the report of that title dated March 12, 2019, prepared by DKS for the City of Hercules, and future additions and amendments or supplements to or replacements of that report, all of which are incorporated in this Article.

(c) “Permit” means a building or use permit authorizing the development of new floor area or a change from one (1) land use category to another.

(d) “Floor area” means the gross floor area of a building or, if a building contains separate uses for which the fee is payable, the floor area of each of those uses. It is determined by calculating the total combined floor area within the building’s exterior walls or, in the case of a building containing more than one (1) use, the area within the walls containing each separate use. Floor area includes the area of an addition where floor area is increased. Parking areas and exterior walkways are not included in this calculation.

(e) “Improvements” are the transportation facility improvements in the City which are identified in the 2019 Hercules Transportation Impact Fee Nexus Study, the Hercules General Plan, and the Capital Improvements Program (CIP). They include improvements to intersections, roadways, freeway ramps, traffic signals, pedestrian facilities, bicycle facilities, and transit facilities.

(f) Land uses referred to in this Article and in the resolution establishing fees are defined as follows:

(1) “Single-family dwelling” includes one (1) detached single-family dwelling unit on a single parcel.

(2) “Multifamily dwelling” means all attached dwellings such as apartments, town houses, condominiums, duplexes, multiplexes and new accessory units that are either detached, created by an addition on an existing single-family dwelling or created by converting nonhabitable space. Accessory dwelling units within the footprint of an existing dwelling unit’s habitable space are not required to pay the fee.

(3) “Office” includes facilities primarily used for professional (medical, legal, engineering, accounting), general commercial, financial, insurance and other offices which do not function primarily for walk-in services, as well as uses with a similar impact on the services or facilities for which the fee is assessed.

(4) “Retail” includes facilities primarily engaged in the retail sales of goods or services to the general public or to small businesses. This category includes automobile dealers, non-fast-food restaurants, hospitals, schools, colleges, banks, and uses with a similar impact on the services or facilities for which the fee is assessed.

(5) “Industrial” includes facilities primarily engaged in manufacturing, processing and assembling goods, business and construction services, passenger and freight transportation, research and development and uses with a similar impact on the services or facilities for which the fee is assessed.

(6) “Hotel” includes buildings used for the overnight lodging of guests for less than thirty (30) days and uses with a similar impact on traffic volume.

(7) “Fast food/drive through” are generally those convenience food places that generate much higher traffic rates than other retail uses due to their high turnover.

(8) “Fuel station pumps” (excludes convenience store building) allocate fees based on the traffic generation for fuel stations, as the fuel canopy square footage does not adequately capture the traffic impacts.

(9) Other uses are uses not specifically set forth in subsections (f)(1) through (8) of this Section in accordance with the 2019 Hercules Transportation Impact Fee Nexus Study. (Ord. 518 § 1 (Exh. A (part)), 2019: Ord. 364 § 2 (part), 2001)

Sec. 10-18.603 Fee Requirement.

(a) General. The amount of the fee shall be established by resolution of the City Council and is based upon the following considerations:

(1) Development will pay only for improvements where there is a reasonable relationship between the improvements and the traffic generated by the new development.

(2) Each type of development shall contribute to the needed improvements in proportion to the use of the improvements by that type of development.

(b) Type of Development Subject to the Fee. The categories of land uses for which the fee will be charged are listed below, based on each use’s dwelling unit equivalents (accounting for trip lengths) in the Nexus Study.

(1) Single-family residential: per unit;

(2) Multifamily residential: per unit;

(3) Office: per square foot;

(4) Retail: per square foot;

(5) Industrial: per square foot;

(6) Hotel: per room;

(7) Fast food/drive through: per square foot;

(8) Fuel station: pumps;

(9) Other uses not specifically set forth, consistent with the 2019 Hercules Transportation Impact Fee Nexus Study.

(c) When and How Applicable. The fee is imposed upon issuance of a development permit, certificate of occupancy or change of use. A “development permit” means any permit or approval from the City, including but not limited to subdivision maps, final planned development permit, building permit, or other permit for construction or reconstruction. The fee applies as follows:

(1) The fee for residential construction is for each dwelling unit. There is no fee for unit replacement or remodeling or for an addition to an existing unit not resulting in a new accessory dwelling unit.

(2) The fee per square foot for retail, office and similar construction is imposed on a per square foot basis for all new floor area including additions where floor area is increased, and on a per-room basis for hotel construction. There is no fee for remodeling or restoration where floor area is improved or replaced but not increased.

(3) A fee may be due for a change in land use category. The fee is based upon the incremental difference between the current applicable fee for the prior use and the current fee for the proposed new use.

(d) Improvements. The fee shall be based on the cost of the improvements attributable to new development as determined in the 2019 Hercules Transportation Impact Fee Nexus Study. The improvements included in the total cost are set forth in the 2019 Hercules Transportation Impact Fee Nexus Study, and do not and shall not include the costs to alleviate existing deficiencies in the circulation system. (Ord. 518 § 1 (Exh. A (part)), 2019: Ord. 364 § 2 (part), 2001)

Sec. 10-18.604 Exemptions and Credit.

(a) No fee is due if a traffic or transportation facilities impact fee was previously paid in full for a particular property and use.

(b) No fee is due for an increase in floor area of a retail use when such increase does not expand existing floor area by more than ten percent (10%) or seven hundred fifty (750) square feet. (Ord. 518 § 1 (Exh. A (part)), 2019: Ord. 364 § 2 (part), 2001)

Sec. 10-18.605 Time of Payment.

The time for payment of the traffic facilities fee shall be established by resolution of the City Council setting the fee and shall conform to the requirements of Government Code Section 66007. (Ord. 518 § 1 (Exh. A (part)), 2019: Ord. 364 § 2 (part), 2001)

Sec. 10-18.606 Transportation Facilities Fee Impact Fund—Use of Fee.

(a) The City shall deposit the fees collected under this Article in a special fund, the Transportation Facilities Impact Fee Fund (previously known as the Traffic Facilities Impact Fee Fund), designated for transportation facilities improvements.

(b) The fees and any interest earned shall be used only to:

(1) Complete the transportation improvement projects specified in the 2019 Hercules Transportation Impact Fee Nexus Study and any amendment thereto or to reimburse the City for such construction if funds were advanced by the City from other sources; or

(2) Reimburse developers who have been required or permitted to install such improvements (after the effective date of this Article) which are oversized with supplemental size, length or capacity relative to the demand generated by the proposed project contained in the improvement list; or

(3) Reimburse the City for its reasonable costs in administering this Article. (Ord. 518 § 1 (Exh. A (part)), 2019: Ord. 364 § 2 (part), 2001)

Sec. 10-18.607 Authority for Separate Mitigation Measures.

Fees collected under this Article are not intended to replace or limit other City requirements to provide site-specific mitigation of site-specific traffic impacts imposed upon development projects as part of normal development review process. (Ord. 518 § 1 (Exh. A (part)), 2019: Ord. 364 § 2 (part), 2001)

Sec. 10-18.608 Annual Review/Index Adjustment.

The City Council shall, as it deems necessary, review the traffic facilities fee authorized by this Article, implementing Council resolutions and supporting documentation, including the 2019 Hercules Transportation Impact Fee Nexus Study as amended, supplemented or replaced from time to time and any traffic mitigation or other studies, and may, based on such review, institute an amended traffic facilities impact fee program.

Effective July 1, 2020, and on each subsequent anniversary date of such date, the amount of each of the transportation facilities impact fees, set forth above, shall increase or decrease by the annual percentage change in the Engineering News-Record Construction Cost Index for the San Francisco Bay Area for the twelve (12) month period ending with the February index of the same calendar year. The percentage change will be calculated by staff and presented to City Council with the annual update to the Master Fee Schedule. (Ord. 518 § 1 (Exh. A (part)), 2019: Ord. 364 § 2 (part), 2001)

Sec. 10-18.609 General Provisions Apply.

Article 1 applies to this transportation facilities impact fee. (Ord. 518 § 1 (Exh. A (part)), 2019: Ord. 364 § 2 (part), 2001)