Chapter 8.52
CHILD CARE DEVELOPMENT IMPACT FEES
Sections:
8.52.040 Application and payment of fee.
8.52.060 Alternative means of satisfying fee obligation.
8.52.080 Credits and fee adjustments and appeals.
8.52.010 Authority.
This chapter is enacted pursuant to the Mitigation Fee Act contained in Government Code Section 66000 et seq. (Ord. 1585 § 2, 2022)
8.52.020 Purpose.
The purpose of this chapter is to provide funding to expand the number of quality child care spaces available to residents and employees in San Carlos through the use of development fees consistent with State law, in order to implement the child care policies prioritized in the 2022 City Council Strategic Goals. The intent of this chapter is not to raise general revenues. Instead, the intent is to provide for the capital improvements and augmentation to the child care system to help satisfy the child care needs generated by growth from new development, in a balanced and efficient manner which will mitigate the adverse impacts on the child care system and promote the public health, safety, and general welfare. (Ord. 1585 § 2, 2022)
8.52.030 Definitions.
As used in this chapter, the following terms shall have the following meanings:
A. “Building permit” includes full structural building permits as well as partial permits such as foundation-only permits.
B. “Child care development impact fee” means the fee charged to new nonresidential development in the City of San Carlos on a per square foot of floor area basis.
C. “Development agreement” means a written agreement with applicants for development projects as provided by Chapter 18.37.
D. “Floor area measurement” includes exterior facade of building wall planes or from the center line of party walls; parking areas and exterior walkways are not included.
E. “Mitigation Fee Act” authorizes a local government agency to impose development impact fees on specific development projects to defray the cost of new or additional public facilities that are needed to serve those developments.
F. “Nonresidential development” includes land uses categories identified in the City’s Zoning Code, Title 18, including office/R&D, retail, hotel and industrial.
G. “Nexus study” is the study prepared by Economic and Planning Systems (EPS) on July 14, 2021, that established the maximum child care development impact fees justifiable under the Mitigation Fee Act that could be required of new development in the City of San Carlos.
H. “Use permit” means a discretionary permit, such as a minor use or conditional use permit, which may be granted by the appropriate City of San Carlos authority to provide for the accommodation of land uses with special site or design requirements, operating characteristics, or potential adverse effects on surroundings, which are not permitted as of right but which may be approved upon completion of a review process and, where necessary, the imposition of special conditions of approval by the permit granting authority.
I. “Zoning administrator” means the Zoning Administrator of the City of San Carlos, or his or her designee. (Ord. 1585 § 2, 2022)
8.52.040 Application and payment of fee.
The child care development impact fee enabled in this chapter is charged to new nonresidential development in the City of San Carlos on a per square foot of floor area basis. Floor area measurement shall be to the exterior facade of building wall planes or from the center line of party walls. Parking areas and exterior walkways are not included in the child care impact fee calculation.
This chapter does not replace normal subdivision map exactions or other measures required to mitigate site specific impacts of a development project including, but not limited to, mitigations pursuant to the California Environmental Quality Act; regulatory and processing fees; fees required pursuant to a development agreement; funds collected pursuant to a reimbursement agreement that exceed the developer’s share of public improvement costs; or assessment district proceedings, benefit assessments, or taxes.
A. General. The amount of the proposed fee shall be established by City Council resolution and not exceed the fee established by the adopted Impact Fee Nexus Study dated July 14, 2021, or subsequent nexus studies, which shall be adjusted annually based on the Construction Cost Index published by the Engineering News Record or a reasonable replacement index. The fee imposed under this chapter is based on the consideration that new development contributes to expanding the need for additional quality child care spaces in the City, based on employment generation and employee demand for child care.
B. Types of Development Subject to the Fee. The fee shall be applicable to new development and redevelopment projects which require a planning application, expansion of floor area of existing uses which require a planning application, and changes of use requiring a use permit as follows:
1. Nonresidential Construction. Fees shall be charged based on employment generation and employee demand for child care, as established in the Child Care Impact Fee Nexus Study. No fee is applicable for remodeling or restoration only, where the floor area is improved or replaced but not increased. Floor area measurement shall be to the exterior facade of building wall planes or from the center line of party walls. Parking areas and exterior walkways are not included in the child care need generation calculation.
2. Changes of Use Requiring a Use Permit. Fees shall be charged upon the incremental difference between the fee calculated for the floor area of a prior legal use and the fee calculated for the floor area of the proposed new use.
C. Land Use Categories Subject to the Fee. All nonresidential land use categories identified in the City’s Zoning Code, Title 18, which generate employment are subject to the fee.
D. Authority of Zoning Administrator. The Zoning Administrator shall have authority to render final determinations regarding the appropriate classification of land use and the correct calculation of gross building floor area for a particular development project. (Ord. 1585 § 2, 2022)
8.52.050 Fee payment.
The child care impact fee shall be paid in full to the City of San Carlos before the first building permit is issued. If no building permit is required, the fee shall be paid before a conversion of use may take place. The fee shall not apply to any project submitted for a building permit or to any project application that was submitted and considered complete prior to the effective date of the ordinance codified in this chapter, except where otherwise subject to an existing development agreement. (Ord. 1585 § 2, 2022)
8.52.060 Alternative means of satisfying fee obligation.
New nonresidential projects may meet the child care impact fee obligation by building appropriately sized and feasible child care space on site and contracting with a licensed child care provider. For example, a new nonresidential development of fifty thousand (50,000) square feet may meet its fee obligation by building child care space on site at a ratio of ten percent (10%), such that the development provides at least five thousand (5,000) square feet of child care space on site. The dimensions provided in this example are meant to inform a memorandum of understanding or similar agreement between the developer and the City. Other sized on-site child care facilities may be approved if economic and operational feasibility is demonstrated by the developer, consistent with the demand ratios articulated in the nexus study. Any on-site child care provided through this option would need to meet State licensing requirements and local regulatory requirements (as specified in Section 18.23.090) and would need to be mutually agreed upon by the developer and the City.
If mutually agreed upon by the developer and the City, alternative means of satisfying the fee obligation may be identified and articulated in a development agreement, or similar mutually agreed upon agreement. (Ord. 1585 § 2, 2022)
8.52.070 Exemptions.
The following exemptions from the requirements for fees and exactions are imposed:
A. Any type of project determined by the City Council to have a reduced or insignificant child care impact.
B. Residential Uses. Residential uses including single-family, multifamily, senior housing, affordable housing, accessory dwelling units and junior accessory dwelling units.
C. Repairs or Replacement. No fee is applicable for repairing, remodeling, modifying, reconstructing, replacing only, where the floor area is improved or replaced but not increased. This includes residential and nonresidential square footage being replaced due to natural disaster.
D. Public Project. Projects undertaken by a public agency except projects undertaken by a private developer on public property, and except property not used exclusively for a governmental purpose.
E. Project with Complete Application Prior to Effective Date of Ordinance. Project submitted for a building permit or any project application that was submitted and considered complete prior to the effective date of the ordinance codified in this chapter, except for any project which is required to comply with these measures pursuant to the provisions of a development agreement. (Ord. 1585 § 2, 2022)
8.52.080 Credits and fee adjustments and appeals.
A. Credits. If a project is changing its use and adding net new square footage, a credit in the amount offsetting the impact of its prior use shall be applied. For example, a development project converting existing industrial square footage into office/R&D will have the fee for the proposed office/R&D space (including any addition) calculated and the fee for the existing industrial space calculated, and the existing industrial space will be credited against the new office/R&D use. In the event that the credit exceeds the new fee, the fee shall be zero and no refunds are applicable. No credits or exemptions will be given to properties that have been vacant for more than three (3) years by the time of applying for building permit.
B. Fee Adjustments and Appeals. The developer of a project subject to this chapter may appeal the imposition and/or calculation of the fee.
1. The appeal shall be processed in accordance with Chapter 1.25. An appeal by a developer of a project not requiring a planning application shall be to the Zoning Administrator.
2. Notice of the appeal shall be provided in accordance with applicable provisions of this Code.
3. The appellant shall state in detail the factual basis for the appeal and shall bear the burden of proof in presenting substantial evidence to support the appeal.
4. The appeal body shall uphold the fee and deny the appeal if it finds that there is a reasonable relationship between the development project’s impact on employee generation and the need for child care spaces and the amount of the fee. The appeal body shall consider the land use category determination, and the substance and nature of the evidence, including the fee calculation method, supporting technical documentation, and the appellant’s technical data. Based on the evidence, the appeal body may also modify the fee. (Ord. 1585 § 2, 2022)
8.52.090 Use of fee.
Upon receipt, child care impact fees shall be deposited, invested, accounted for, and expended as required per the Mitigation Fee Act, Government Code Section 66001, or successor statute. Revenues, along with any interest earnings on the account, shall be used to fund contributions towards the expansion of new child care spaces in the City, including but not limited to:
A. Acquiring land on which a new child care facility may be developed;
B. Funding child care facility development costs;
C. Providing loans or grants to licensed in-home child care providers; and/or
D. Other capital expenditures related to expanding child care in the City otherwise consistent with the law. (Ord. 1585 § 2, 2022)
8.52.100 Refund of fee.
Under certain circumstances, refund of the fees paid may be warranted.
A. If a building permit or use permit expires, is canceled, or is voided and any fees paid pursuant to this chapter have not been expended, no construction has taken place, and the use has never occupied the site, the Director of Community Development may, upon the written request of the applicant, order return of the fee and interest earned on it, less administrative costs.
B. The City Council shall make a finding with respect to any fee revenue not expended or committed five (5) years or more after it was paid. If the City Council finds that the fee revenue is not committed, it shall authorize a refund to the then owner of the property for which the fee was paid, pursuant to Government Code Section 66001 or successor legislation. (Ord. 1585 § 2, 2022)
8.52.110 Annual review.
The child care impact fee authorized by this chapter, implementing Council resolutions, and supporting documentation, shall be reviewed annually by the City Council in order to make any findings required by State law, and to make any adjustments in the amount of the fee. (Ord. 1585 § 2, 2022)