CHAPTER 16B
WATER AND SEWER IMPACT FEE

Sections:

16B.1    Purpose.

16B.2    Definitions.

16B.3    Water and sewer impact fee imposed.

16B.4    Timing of payment.

16B.5    Calculation of fee.

16B.6    Appeals.

16B.7    Exemptions.

16B.8    Fund accounting.

16B.1 Purpose.

The purpose of this impact fee is to mitigate unfavorable impacts on the City’s water and sanitary sewer systems attributed to new development. This fee is to be applied toward the costs of new or expanded public water and sewer facilities. It is based on a formula designed to ensure that individual developers pay their fair share for public facilities needed to serve the increased population which results from new development. (Ord. No. 2280, § 3, 2015.)

16B.2 Definitions.

As used in this chapter:

(a)    “Costs of capital improvements” include all costs related to acquisition, construction, repair and financing of improvements to the water and sewer facilities, but do not include costs of routine maintenance.

(b)    “Essential infrastructure” means capital improvements related to the water and sewer facilities which are otherwise not specifically identified for funding as a part of other city development fees.

(c)    “Fees” collected under the requirement of this chapter are as defined in Section 66000 of the Government Code but collected specifically for the purposes outlined in this chapter.

(d)    “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.

(e)    “New development” means the construction of new structures or additions to existing non-residential structures in the city and, with respect to residential development, any development project that creates additional dwelling units. “New development” shall not mean replacement or expansion of an existing dwelling unit. With respect to nonresidential development, “new development” shall also mean any development project that creates additional square footage of useful area or changes the use class of an existing structure. When any new development occurs on a parcel (or group of parcels), “new development” shall include all new construction on the parcel.

(f)    “Sewer facilities” or “system” has the same meaning as set forth in Section 30.1 of this Code.

(g)    “Water facilities” or “system” means the system of pipes, conduits, and related infrastructure which treats, stores, and delivers the municipal water supply to residents. (Ord. No. 2280, § 3, 2015.)

16B.3 Water and sewer impact fee imposed.

The fee is hereby imposed as a condition of the issuance of any permit for any new development, unless expressly exempted by this chapter. (Ord. No. 2280, § 3, 2015.)

16B.4 Timing of payment.

(a)    Except as otherwise required by Government Code Section 66007, the fee shall accrue at the time the city receives an application for utility service. A fee shall be calculated at the rate in effect when the fee accrues.

(b)    Payment of the fee may be deferred, for residential development only, to the date of approval of the final building inspection of the development, provided the owner of the real property for which the fees are required enters into a recordable agreement with the city prior to issuance of the building permit for the development, which shall constitute a lien on the property from the date of recordation and shall be enforceable against successors in interest to the property owner. The agreement shall provide that approval of the final building inspection shall not be granted until the fee is paid. The agreement shall also provide that, in any action to collect the fee or any portion thereof, the city shall be entitled to all of its costs of enforcement and collection, including reasonable attorney’s fees. The city manager may execute such agreements on behalf of the city in a form acceptable to the city attorney. Any deferral granted pursuant to this subsection shall be consistent with the requirements of Government Code Section 66007. (Ord. No. 2280, § 3, 2015.)

16B.5 Calculation of fee.

(a)    The rate of the fee shall be established from time to time by resolution or ordinance of the city council in the manner required by Government Code Section 66016 and other applicable law.

(b)    Beginning July 1, 2016, and on each July 1st thereafter, the rate of the fee shall increase without further action by the city according to the following formula:

Council-Approved Rate* =

ENR Index for April of Current Year

ENR Index for April of Council-Approval Year

*    Where the “Council-Approved Rate” is the rate most recently established by resolution or ordinance of the city council, “ENR Index for April of Current Year” is the Construction Cost Index published in the Engineering News-Record for the month of April of the year when the calculation is made and “ENR Index for April of Council-Approval Year” is the Construction Cost Index published for April of the year in which the Council approved the “Council-Approved Rate.”

The director shall calculate the increased fee annually and give notice of that calculation in the manner required by law for the publication of ordinance of the city council. (Ord. No. 2280, § 3, 2015.)

16B.6 Appeals.

An applicant or developer may appeal to the city council a determination that the proposed project or development will be subject to the fee imposed pursuant to this chapter, or a determination as to the amount of a proposed fee. The appeal must be filed within thirty days of the determination. In the absence of a timely appeal, the determination of applicability and amount shall be deemed final. (Ord. No. 2280, § 3, 2015.)

16B.7 Exemptions.

Any proposed development which meets the following criteria shall be exempt from paying the water and sewer impact fee:

(a)    Alterations which do not increase the floor area of a structure;

(b)    Additions to single-family residential dwellings which does not constitute habitable space as defined by the Uniform Building Code; or

(c)    Single-family residential dwellings upsizing their meter without a change of use;

(d)    New development that is exempt from the fee by virtue of the Constitutions of the United States or California or by virtue of other applicable state or federal law. (Ord. No. 2280, § 3, 2015.)

16B.8 Fund accounting.

(a)    All fees collected pursuant to this chapter shall be placed in a separate fund, entitled the “Water and Sewer Impact Fee Fund.” The fees in this fund, along with any interest earnings on the accounts, may only be utilized for the costs of capital improvements to the water and sewer facilities, as defined previously in this chapter.

(b)    If the city has had possession of a fee for five or more years, and has not committed that money to a project, then the city shall 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 shall refund the fees as appropriate. (Ord. No. 2280, § 3, 2015.)