CHAPTER 16A
GROWTH REQUIREMENT CAPITAL FEE
Sections:
16A.4 Commercial and industrial development—Fees.
16A.5 Residential development—Fees.
16A.6 Fee use and type of development—Relationship.
16A.1 Purpose.
The purpose of this growth requirement capital fee is to mitigate unfavorable impacts attributed to new development. This fee is to be applied toward the costs of certain public facilities. It is based on a formula designed to insure that individual developers pay their fair share for public facilities needed to serve the city’s growing population. The public improvements are identified by category in the city’s capital improvement program (CIP) which is updated annually. While public improvements may be added or deleted from the CIP, use of the growth requirement capital fee is limited to those public improvements which fall into one of the following categories: (1) government and public safety facilities, (2) essential infrastructure and related facilities, and (3) cultural and recreational facilities. (Ord. No. 1985, § 1.)
16A.2 Definitions.
As used in this chapter:
(a) “Capital improvements” are any public facilities or equipment funded through the city’s capital improvement budget.
(b) “Costs of capital improvements” include all costs related to acquisition, construction, repair and financing, but do not include costs of routine maintenance.
(c) “Cultural and recreational facilities” are capital improvements related to library, auditorium, concert hall, and similar facilities.
(d) “Essential infrastructure” are capital improvements related to streets (including, but not limited to, curbs, sidewalks and related structures), bridges, traffic control, water supply and appurtenances, drainage and similar facilities which serve public transportation, access and drainage needs, which are otherwise not specifically identified for funding as a part of other city development fees.
(e) “Fees” collected under the requirement of this chapter mean those as defined in Section 66000 of the Government Code, but shall not include costs incurred by any developer as a result of any conditions imposed for the approval of the project.
(f) “Gross floor area” means the total horizontal area of all the floors of a structure included within the surrounding exterior walls, including garages, and accessory structures, but excluding patios.
(g) “New development” means any residential, commercial or industrial construction project except as specifically exempted in this chapter.
(h) “Government facilities” are capital improvements related to City Hall, city garage and equipment yard, city offices, parking and similar facilities in or through which general city government operations are conducted.
(i) “Park facilities” are parkland, adjacent street improvements, capital park improvements including but not limited to landscaping, irrigation, play structures, benches, pathways, fences and parking as well as special use facilities and structures such as restrooms, sports complexes and buildings, and financing costs associated with any of the aforementioned.
(j) “Public safety facilities” are capital improvements related to police and fire operations.
(k) “Related facilities” are capital improvements of general community benefit such as major landscaping, fountains, monuments, signs and similar facilities. (Ord. No. 1985, § 2; Ord. No. 2171 § 2, 2008.)
16A.3 Findings.
The city council finds that there is a reasonable relationship between the need for the public facilities discussed in section 16A.1 and the type of development project for which the fee is imposed for the reasons stated in this section.
The city is committed to maintaining the same level of public services and the same public facilities-to-population relationship which presently exists. Thus, to the extent growth occurs in the future, there will be a need for added public services and facilities.
The growth requirement capital fee is based on the premise that to the extent new development necessitates public facilities, it should be required to pay its fair share. (Ord. No. 1985, § 2.)
16A.4 Commercial and industrial development—Fees.
Commercial and industrial development fosters the need for additional public services, which in turn contribute to the need for the following categories of public facilities: government and public safety facilities and essential infrastructure and related facilities.
Based on the level of services and the facilities-to-population relationship which presently exists and the extent to which commercial/industrial development contribute to growth, the city has determined that commercial and industrial development should be assessed at the following rates as their fair share of contribution for these needed public facilities.
Each new commercial and/or industrial development shall pay a fee as set and adjusted by resolution of the city council. (Ord. No. 1985 § 2(1); Ord. No. 2005.)
16A.5 Residential development—Fees.
Residential development results directly or indirectly in significant increases in city population, and accordingly, such development adversely affects the public facilities-to-population relationship which presently exists. Because residential development results in significant increases in population, it contributes to the need for the following categories of public facilities: government and public safety facilities, essential infrastructure and related facilities and cultural and recreational facilities.
Each new residential development shall pay an amount as set and adjusted by resolution of the city council.
Residential development also contributes to the need for park facilities.
Therefore, each new residential development shall also pay a fee to be known asthe “park facilities impact fee” in an amount as set and adjusted by resolution of the city council in addition to the herein aforementioned residential development fee.
The rates upon which the fees set forth in this chapter are based shall be adjusted as of July 1st of each year to reflect changes in building costs as determined by the Construction Cost Index for Los Angeles from January of the previous year to January of the current year based on the Engineering News Record. (Ord. No. 1985, § 3(2); Ord. No. 2005,; Ord. No. 2171 § 2, 2008.)
16A.6 Fee use and type of development—Relationship.
The city council finds that there is a reasonable relationship between the need for the public facilities discussed in section 16A.1 and the type of development project on which the fee is imposed for the reasons stated in this section.
It is reasonable to use growth requirement capital fees generated from residential development for all capital improvements because growth in the residential population places a demand on government and public safety facilities, essential infrastructure and other related facilities, and cultural and recreational facilities, as defined in this chapter. Because commercial and industrial development also place a demand on government and public safety facilities and essential infrastructure and other related facilities, it is reasonable to use fees assessed from this development sector for all capital improvements which fall within the definition of these categories. However, it is not reasonable to use fees assessed from the commercial/industrial sector in support of cultural and recreational facilities, since the city has determined that there is not substantial demand placed on these facilities as a result of a commercial or industrial growth. (Ord. No. 1985, § 4.)
16A.7 Fee payment.
Any applicant for a building permit for new development shall pay the growth requirement capital fee in conjunction with payment of the building permit. (Ord. No. 1985 § 5.)
16A.8 Exemptions.
Any proposed development which meets the following criteria shall be exempt from paying the growth requirement capital fee:
(a) Alterations which do not increase the floor area of a structure; or
(b) Additions to single-family residential dwellings which does not constitute habitable space as defined by the Uniform Building Code. (Ord. No. 1985, § 6.)
16A.9 Fund accounting.
(a) All fees collected pursuant to this chapter shall be placed in a separate fund and further separated into two special accounts, one for fees generated from residential development and the other for fees generated from commercial and industrial development pursuant to Government Code section 53077. The fees in these accounts, along with any interest earnings on the accounts, may only be utilized for certain capital improvements, as defined previously in this chapter.
(b) If the city has had possession of a developer fee for five or more years, and has not committed that money to a project, then the city must make findings describing the continuing need for that money each fiscal year after the five years has expired.
(c) If the city cannot make such findings, then the city will need to refund the fees as appropriate. (Ord. No. 1985, § 7.)
16A.10 Annual findings.
Each year, with the adoption of the capital improvement program, the council will make the following findings:
(a) The city council will identify the purpose to which the growth requirement capital fee is to be put; and
(b) The city council will determine whether there is a reasonable relationship between the fee and the purpose for with it was charged. If it is determined that there is a reasonable relationship, then it shall so demonstrate. (Ord. No. 1985, § 8.)