Chapter 3.40
DEVELOPMENT IMPACT FEES
Sections:
3.40.070 Individual assessments and appeals.
3.40.090 Administration of fees.
3.40.100 Use of development impact fee proceeds.
3.40.110 Refunds of unexpended proceeds.
Prior legislation: Ordinance 430.
3.40.010 Title.
This chapter shall hereafter be known as the year 2008 development impact fee ordinance. (Ord. 461 § 1, 2008).
3.40.020 Purpose.
In order to implement the goals and objectives of the city of Holtville’s general plan, and to mitigate the impacts caused by new development in the city, certain public improvements (collectively referred to herein as “public facilities,” “infrastructure,” or “improvements”) must be or had to be constructed. The city council has determined a development impact fee is needed in order to finance these public improvements and to pay for the development’s fair share of the construction costs of these improvements. In establishing the fee described in the following sections, the city council has found the fee to be consistent with its general plan and, pursuant to Government Code Section 65913.2, has considered the effects of the fee with respect to the city’s housing needs as established in the housing element of the general plan. (Ord. 461 § 1, 2008).
3.40.030 Definitions.
When the following words or phrases are used in this chapter, they shall have the meaning ascribed to them in this section:
A. “City” means the city of Holtville.
B. “Applicant” means the property owner, or duly designated agent of the property owner of land on which a request for development approval is received by the city.
C. “Benefit area” means the geographic area within which development fees are collected and expended for a particular type of capital improvement serving development projects within such area. Also identified as “study area.”
D. “Capital improvement” means land and/or facilities for the storage, treatment or distribution of water; for the collection, treatment, reclamation or disposal of sewage; for the collection and disposal of stormwater or for flood control purposes; for the generation of electricity or the distribution of gas or electricity; for purposes of transportation or transit, including, but not limited to, streets and supporting improvements, roads, overpasses, bridges, and related facilities; for parks and recreational improvements; for public safety, including police and fire services; for public buildings, including public libraries; or for any other capital project identified in the city’s adopted capital improvement plan.
E. “Development impact fees” (“fees”) means any and all fees set out in this chapter, or monetary exaction imposed as a condition of or in connection with approval of a development project of the purpose of defraying all or a portion of the cost of capital improvements related to the development project, which help mitigate the impacts that new development has upon the service levels being provided by the city, in accordance with Government Code Section 66000 et seq.
F. “Dwelling unit” means one or more habitable rooms designed, occupied or intended for occupancy as separate living quarters. Each dwelling unit contains only one kitchen. A manufactured home or mobile home is a dwelling unit.
G. “Facilities” means any long-term capital facilities, services and equipment used by public agencies in providing a service directly or through contract to the public.
H. “Improvement” means any modification, alteration, or addition that increases the original size of any structure by 10 percent or more.
I. “New development” means all construction for which a building permit or other permit to operate is required.
J. “Nonresidential development project” means all development other than a residential development project.
K. Except as stated in this section, the definitions of words used in this chapter shall be as defined in any relevant ordinances or codes (building), or otherwise defined in the Holtville land use ordinance. (Ord. 461 § 1, 2008).
3.40.040 Applicability.
This chapter applies to all impact fees imposed by the city as a condition of development approval for the purpose of financing capital improvements, the need for which is attributable to such development, unless expressly herein excepted, including but not limited to:
A. Administration fees;
B. Transportation fees;
C. Park fees;
D. Storm drainage fees;
E. Law enforcement fees;
F. Fire protection fees. (Ord. 461 § 1, 2008).
3.40.050 Imposition of fees.
Fees shall be assessed and levied upon any owner of real property located in the benefit area(s) in connection with: adding one or more dwelling units to such property, including the construction of a new dwelling unit or the installation of a manufactured home on the property; adding industrial (or agricultural-related), commercial, or office units to such property; construction of an addition of chargeable space to an existing industrial (or agricultural-related), commercial or office structure on the property; or converting a land use to a more intensive use on such property, thereby creating a greater need for infrastructure facilities. Said fees are to be in amounts determined necessary to fund the acquisition and development of facilities required to serve the cumulative needs of those persons residing, working or studying in or otherwise using such units or property in the benefit area(s).
Development impact fees shall be imposed as a condition of approval of a development project. The development fee established pursuant to this chapter shall be paid by each developer prior to the issuance of a building permit. The calculation of development impact fees shall be based on the development impact fee schedule in effect at the time of issuance of a building permit. No final inspection of certificate of occupancy shall be issued until all development impact fees due for the development project have been paid. (Ord. 461 § 1, 2008).
3.40.060 Calculation of fees.
The amount of the fees assessed and levied shall be pursuant to the provisions of this chapter. Development impact fee amounts and fee benefit areas shall be established, and may be amended from time to time, by city council resolution. The city council shall, in a council resolution, set forth the specific amount of the fee, describe the development for which facilities are needed, list the specific public improvements required to accommodate said development, set forth the estimated cost of the improvements, describe the reasonable relationship between this fee and the various types of new developments and set forth time for payment.
On an annual basis, the city council shall review this fee to determine whether the fee amounts are reasonably related to the impacts of developments and whether the described public facilities are still needed. (Ord. 461 § 1, 2008).
3.40.070 Individual assessments and appeals.
An individual assessment of impact fees is permitted in situations where the fee payer can demonstrate by clear and convincing evidence that the established impact fee is inappropriate. The city manager, or his or her duly designated agent, shall render a written decision regarding the individual assessment and forward it to the city council within 30 days of the date a complete application is submitted. The property owner or applicant may appeal to the city council any decision of a city official with respect to the imposition or calculation of a development impact fee or the amount of any credit or refund due. The burden of proof is on the appellant to demonstrate that the imposition of the fee or amount of the fee or of the credit or refund was not calculated in accordance with the procedures established herein.
Appeals to the city manager’s or his or her duly designated agent’s, determination of individual assessment shall be made to the city council by the filing of an appeal with the city clerk within 30 days of the date of mailing, faxing, or personal delivery of written notice of the decision of the city manager, or his or her duly designated agent. Final determination regarding individual assessments shall be made by the city council. (Ord. 461 § 1, 2008).
3.40.080 Exemptions.
The provisions of this chapter do not apply to:
A. Taxes or special assessments levied by the city;
B. Fees for processing development applications or approvals;
C. Fees for enforcement of or inspections pursuant to regulatory ordinances;
D. Fees collected under development agreements adopted pursuant to Government Code Section 65864 et seq.;
E. Rebuilding the same amount of floor space of a structure which was destroyed by fire or other catastrophe, providing the structure is rebuilt and ready for occupancy within two years of its destruction;
F. Remodeling or repairing a structure which does not increase the number of equivalent dwelling units;
G. Replacing a residential unit; including a modular building or manufactured/mobile home, with another residential unit on the same lot; provided, that the number of equivalent dwelling units does not increase;
H. Placing a temporary construction trailer or office on a lot;
I. Constructing an addition on a residential structure which does not increase the number of equivalent dwelling units;
J. Adding uses that are typically accessory to residential uses, such as tennis or clubhouses, unless it can be clearly demonstrated that the use creates a significant impact on the capacity of system improvements;
K. Upon demonstration by the fee payer by documentation such as utility bills and tax records, to the installation of a modular building, manufactured/mobile home or recreational vehicle on that same lot or space for which a development impact fee has been paid previously, and as long as there is no increase in equivalent dwelling units.
An exemption must be claimed by the applicant prior to issuance of a building permit. Any exemption not so claimed shall be deemed waived by the applicant. Application of exemption shall be submitted to and determined by the city manager, or his or her duly designated agent, within 90 days. Appeals of the city manager’s, or his or her duly designated agent’s, determination shall be made under the provision of HMC 3.40.070, Individual assessments and appeals. (Ord. 461 § 1, 2008).
3.40.090 Administration of fees.
The city manager, or his or her duly designated agent, shall ensure that the funds are appropriated and deposited in accordance with Section 66006 of the Government Code and all other applicable provisions of the law, including but not limited to the following:
A. Deposits. Upon receipt of impact fees, the city manager, or his or her duly designated agent, shall be responsible for placement of such funds into separate accounts as hereinafter specified. All such funds shall be deposited in interest-bearing accounts, within a banking institution authorized to receive deposits of city funds. Interest earned by each account shall be credited to that account and shall be used solely for the purpose specified for funds of such account.
B. Establishment and Maintenance of Accounts. The city manager, or his or her duly designated agent, shall establish separate accounts and maintain records for each such account whereby impact fees collected can be segregated.
C. Maintenance of Records. The city manager, or his or her duly designated agent, shall maintain and keep accurate financial records for each such account that shall show the source and disbursement of all revenues; that shall account for all monies received; that shall ensure that the disbursement of funds from each account shall be used solely and exclusively for the provision of projects specified in the capital improvements program; and that shall provide an annual account for each impact fee account showing the source and amount of all funds collected and the projects that were funded pursuant to Government Code Section 66006.
D. Development impact fees shall only be spent for the category of system improvements for which the fees were collected and either within or for the benefit of the service area in which the project is located.
E. The city shall annually adopt a capital budget.
F. As part of the annual audit process, the city shall prepare an annual report describing the amount of all development impact fees collected, appropriated, or spent during the preceding year by category of public facility and benefit area.
G. Once each fiscal year, the city shall make findings identifying all unexpended or uncommitted development impact fees in each development fee account. (Ord. 461 § 1, 2008).
3.40.100 Use of development impact fee proceeds.
Development impact fees shall be expended only for the type of capital improvement for which they were imposed, calculated and collected and shall be expended or committed in accordance with the time limits and procedures established in this chapter. Development impact fees may be used to pay principal sum and interest and other costs on bonds, notes or other obligations issued by or on behalf of the city to finance capital improvements identified by the city council resolution and the development impact fee report. Development impact fees shall not be expended to maintain, repair or operate capital improvements.
The city shall expend or commit development impact fees deposited in the development impact fee account within five years from the date of deposit into the fund. (Ord. 461 § 1, 2008).
3.40.110 Refunds of unexpended proceeds.
Unexpended funds within the five-year performance period may necessitate refunds. Upon application of the property owner, the city shall refund the portions of any development impact fee which have been on deposit over five years and which are unexpended or uncommitted, unless specific findings are made by the city of Holtville. Refunds shall be made to the then-current record owner or owners of the development project or projects on a prorated basis, together with accrued interest. The city may make findings to identify the purpose to which the fee is to be put and to demonstrate a reasonable relationship between the fee and the purpose for which it was charged. If the city makes such findings, the fees are exempt from the refund requirements.
Except as provided above, if the city finds that the administrative costs of refunding the unexpended or uncommitted development impact fees exceed the amount to be refunded, the city council, after a public hearing notice, which has been published in accordance with state law, may determine that the revenues shall be allocated for other capital improvements of the type for which the fees were collected and which serve the development projects. (Ord. 461 § 1, 2008).
3.40.120 Audits.
The applicant or property owner may request an audit of any development impact fee imposed by the city in order to determine whether the amount of the fee imposed by the city exceeds the amount reasonably necessary to finance capital improvements, the need for which is attributable to new development projects. Upon such request, the city council may retain an independent auditor to conduct an audit to determine whether the development fee is reasonable. Any costs incurred by the city in having an audit conducted by an independent auditor shall be recovered from the person who requested the audit. If an audit is requested, the city may require a deposit from the applicant equal to the estimated cost of the audit. (Ord. 461 § 1, 2008).
3.40.130 Conflicts.
In the event of a conflict between the provisions of this chapter and the provision of any other ordinance or resolution establishing or amending development fees, the provisions of this chapter shall govern. (Ord. 461 § 1, 2008).