Chapter 8-11
CAPITAL FACILITIES FEES
Sections:
8-11-04 Applicability and exemptions.
8-11-05 Fee rate and calculation.
8-11-06 Designation of development type.
8-11-07 Timing of fee payment.
8-11-09 Credits and reimbursements.
8-11-11 Master Plan fee programs.
8-11-01 Title.
This chapter shall be known and may be cited as the “Capital Facilities Fees Law of the City of Turlock.”
(1187-CS, Rep&ReEn, 12/12/2013)
8-11-02 Purpose.
The provisions of this chapter are adopted to promote the public health, safety, peace, morals, comfort, convenience, and general welfare of the citizens of the City and to implement the goals and objectives of the General Plan of the City. Particularly, the provisions of this chapter are adopted for the following reasons:
(a) To provide an adequate and constant method for the financing of the unfunded costs of capital improvements that are reasonably related to projected community growth;
(b) To promote the orderly and efficient development of public improvements to adequately meet the domestic and economic needs of the community and to minimize adverse fiscal and environmental impacts of new development;
(c) To provide the public services necessary to support new development, including, but not limited to, police, fire, parks, and general administrative services;
(d) To establish equitable methods for distributing the costs of capital improvements to new development; and
(e) To comply with the provisions of California Government Code Section 66000 et seq. (Mitigation Fee Act).
(1187-CS, Rep&ReEn, 12/12/2013)
8-11-03 Definitions.
For the purposes of this chapter and the resolutions adopted pursuant thereto, unless otherwise apparent from the context, certain words and phrases used in this chapter and such resolutions are defined as follows:
(a) “Capital facilities fee” means the fee charged to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project consistent with Government Code Section 66000(b).
(b) “Capital Facilities Fee Nexus Study” means the technical report prepared pursuant to California Government Code Section 66000 et seq. (Mitigation Fee Act) that establishes the amount of the capital facilities fee to be included in the capital facilities fee program to be charged to development projects by development type to fund the capital improvements identified in the capital improvement plan.
(c) “Capital facilities fee program” means the program adopted by the Turlock City Council that includes the amount of the fee to be charged to development projects by development type including any quarterly, annual, or five (5) year adjustments or updates.
(d) “Capital improvement” means and includes the following:
(1) Any building, structure, transportation facility, or other improvement constructed or renovated by the City upon property owned by or under its control, as well as the associated permitting, design, and inspection costs; and
(2) Any initial equipment or piece of equipment necessary to service new growth or new development; and
(3) Planning, financing, feasibility, and/or engineering studies or plans required for improvements listed in subsections (d)(1) and (d)(2) of this section, or to maintain the General Plan.
(e) “Capital improvement plan” means the list of identified capital improvements identified in the General Plan (or Master Plan) that indicates the approximate location, size, time of availability, and estimates of cost for all facilities or improvements to be financed with the capital facilities fees.
(f) “Development projects” or “development” means the construction, alteration, or addition of any building, structure, or area, or a change of use of any existing building, structure, or area, or any portion thereof, as defined by the Capital Facilities Fee Nexus Study.
(g) “Development type” shall be the category of the use or activity that is conducted within the building, structure or area as determined by the Fee Nexus Study, such as residential, commercial, industrial, or mixed uses.
(h) “Residential accessory structure” is any permanent building or structure, enclosed or nonenclosed, that:
(1) Is subordinate to and serves the principal residence; and
(2) Is subordinate in area, extent, or purpose to the principal residence; and
(3) Contributes to the comfort, convenience, or necessity of the residents; and
(4) Is located on the same lot as the principal residence.
(i) “Temporary structure” is a structure that can be readily and completely dismantled and removed from the site between periods of actual use.
(j) “Unfunded costs for capital improvements” shall mean those expenses and costs which are reasonably related to projected community growth and development and which the Council determines there are not adequate City funds and/or resources to finance such improvements.
(1187-CS, Rep&ReEn, 12/12/2013)
8-11-04 Applicability and exemptions.
(a) Except as otherwise expressly provided by this chapter, the capital facilities fee program required hereunder shall be payable by all development projects within the City and its approved sphere of influence for which building permits or other entitlements are issued.
(b) The following development projects shall be exempt from the capital facilities fee program:
(1) Buildings used as a public school, college or university operated by a public school district, community college district, or the California State University as defined under the California Education Code, unless the fee is otherwise authorized by local, State, or Federal law.
(2) Public buildings and uses owned and operated by the City of Turlock and the County of Stanislaus, unless the fee is otherwise authorized by local, State, or Federal law.
(3) Reconstruction or replacement of any permitted building or structure that does not exceed the documented total floor area and there is no change in use.
(4) Re-occupancy of square footage in an existing building or structure when there is no change of use as defined by the Capital Facilities Fee Nexus Study.
(5) Square footage of outdoor dining in the public right-of-way.
(6) Residential accessory structures as defined in this chapter.
(7) Temporary structures as defined in this chapter.
(8) For nonresidential development, a change of use within an existing building, structure, or area, or any portion thereof, where there is no increase in the total square footage of the use for which the fee was paid and the use has operated for a minimum of three (3) years as demonstrated by: (i) obtaining all of the necessary Federal, State, and local permits to operate; (ii) obtaining and maintaining an active business license from the City of Turlock during the entire period (including reporting of gross receipts); and (iii) any other evidence deemed necessary by the City Engineer.
(9) Any development project that is not listed as exempt but which nonetheless, in the opinion of the City Engineer, does not increase the demand upon city facilities funded by the fee. The City Engineer may prorate the amount of the fee based upon the project’s anticipated impact upon the subject facility or facilities.
(1187-CS, Rep&ReEn, 12/12/2013)
8-11-05 Fee rate and calculation.
(a) The Council shall establish a capital facilities fee program by resolution to be paid by all development projects pursuant to Government Code Section 66000 et seq. (Mitigation Fee Act).
(b) The capital facilities fee program adopted by the City Council shall be consistent with the provisions of this chapter and the Capital Facilities Fee Nexus Study, and shall be established and amended from time to time by a resolution of the City Council.
(c) The following shall apply to the capital facilities fee program:
(1) The amount of the capital facilities rate shall be automatically adjusted on a quarterly basis starting January 1st of each year based on the Engineering New Record Construction Cost Index.
(2) Up to five (5%) percent of the total amount of the capital improvement plan may be charged to cover the ongoing administrative costs of administering and implementing the capital facilities fee program, and shall be included in the capital facilities fee program.
(3) The capital facilities fee program shall be evaluated every five (5) years following its enactment to reflect the projected revenues compared to the cost of the capital improvements identified within the capital improvement plan.
(4) For residential projects, the fee shall be established on a per unit basis based upon the land use density established in the Turlock zoning regulations, TMC Title 9.
(5) For nonresidential projects, the fee shall be based upon the predominant use of the building, structure, or area, as identified in the building permit or improvement plans, and the total square footage of the building, structure, and/or floor area.
(6) For mixed development consisting of one (1) or more development types, the fee shall be based on the sum of the following:
(i) For the portion that is residential, the amount based on the applicable per unit fee established pursuant to subsection (c)(4) of this section.
(ii) For the portion that is nonresidential, the amount based on square footage of development pursuant to subsection (c)(5) of this section.
(7) Any development on property on which a building or structure, legally in existence, was demolished or on which the use of an existing structure changes to a more intensive use shall pay a prorated fee equal to the fee calculated pursuant to this chapter that is applicable to the new development, less the fee applicable to the prior development.
(1187-CS, Rep&ReEn, 12/12/2013)
8-11-06 Designation of development type.
The City Engineer, or his/her designee, shall be responsible for determining the development type to be assigned to each development project. The City Engineer shall assign such categories as consistently as possible with the definition of such categories established pursuant to this chapter.
(1187-CS, Rep&ReEn, 12/12/2013)
8-11-07 Timing of fee payment.
(a) In accordance with Government Code Section 66007, or any applicable successor statutes, the fee shall be charged and paid for each residential development upon the date of final inspection, or issuance of the certificate of occupancy for such residential development, whichever is earlier. However, if the fee is to reimburse the City for expenditures previously made, or if the City determines that the fee will be collected for facilities for which an account has been established and funds appropriated and for which the City has adopted a proposed construction schedule prior to issuance of the building permit for such residential development, then the fee shall be charged and paid upon issuance of the building permit for such residential development.
(b) Notwithstanding subsection (a) of this section, the fee for a residential development proposed by a nonprofit housing developer in which at least forty-nine (49%) percent of the total units are reserved for occupancy by lower income households, as defined in Health and Safety Code Section 50079.5, or any applicable successor statutes, at an affordable rent, as defined in Health and Safety Code Section 50053, shall be paid in accordance with the procedures described in Government Code Section 66007(b)(2)(A)-(B), or any applicable successor statutes.
(c) The fee shall be charged and paid for each nonresidential development upon issuance of the building permit for such nonresidential development.
(d) The fee shall be charged and paid for each mixed development upon the times specified in this section that apply to such mixed development. For example, if a mixed development includes residential development and nonresidential development, and the fee is to reimburse the City for expenditures previously made, or the City has made the required determination to permit requiring payment of the fee upon issuance of the building permit, and the procedures in Government Code Section 66007(b)(2)(A)-(B), or any applicable successor statutes, do not apply, the fee as applicable to the entire mixed development shall be paid upon issuance of the building permit for the mixed development. If a mixed development includes residential and nonresidential development, and the fee is not to reimburse the City for expenditures previously made or the City has not made the required determination to permit requiring payment of the fee upon issuance of the building permit, the fee as to the residential portion of the mixed development shall be paid upon the earlier of the date of final inspection or issuance of the certificate of occupancy for such residential portion, and the fee as to the nonresidential portion of the mixed development shall be paid upon issuance of the building permit for such nonresidential portion.
(1187-CS, Rep&ReEn, 12/12/2013)
8-11-08 Deferrals.
(a) The City Council may adopt a fee deferral program, or programs, to allow specific development types to pay capital facility fees over a period of time. The City Council will adopt the terms, duration, and applicability of the fee deferral program(s) by resolution and the program shall take effect immediately upon its adoption.
(b) The deferred amount will be subject to escalation in accordance with the provision of TMC 8-11-05(c)(1).
(c) Interest shall be paid on the deferred amount as set forth in the City Council resolution.
(1187-CS, Rep&ReEn, 12/12/2013)
8-11-09 Credits and reimbursements.
(a) The City and a developer may enter into an improvement agreement to allow the developer to construct or purchase certain capital improvements identified in the capital improvement plan. Entering such an agreement is in the City’s sole discretion. Such agreement shall include security for the developer’s commitment to construct the capital improvements and shall refer to this chapter for credit and reimbursement.
(b) The amount of the credit shall be based on the approved engineering cost submitted by the developer, except that said credit shall not be more than the engineering cost estimates used to establish the amount of the fee as approved by the City Engineer.
(c) Should the developer construct capital improvements in excess of the capital facility fee obligation, the developer shall be reimbursed for the difference between the amount of the credit as determined in the provision of subsection (b) of this section and the amount of the capital facility fee obligation for the development project. Reimbursements shall be enacted through a two (2) party agreement including the developer and the City of Turlock.
(1187-CS, Rep&ReEn, 12/12/2013)
8-11-10 Administration.
(a) Capital facilities fees collected pursuant to this chapter shall be placed in capital facilities fee funds which shall be comprised of five (5) accounts, police safety facilities, fire safety facilities, general government, transportation, and administration, to be used for constructing, improving, extending, or purchasing designated capital improvements as set forth in the capital improvement plan of the capital facility fee program.
(b) The City Manager shall have the authority to make loans between the capital facilities fee funds to assure adequate cash flow. Interest charged on each loan shall be based upon the local agency investment fund rate in effect at the time of the loan and shall be deposited into the account providing the loan.
(c) The City Manager, or his/her designee, shall comply with the public reporting requirements for the funds collected through this chapter pursuant to Government Code Section 66006, or any applicable successor statutes.
(d) In the fifth fiscal year following the first deposit of impact fees into a fund, and every five (5) years thereafter, the City Council shall make the findings required by Government Code Section 66001, or any applicable successor statute, with respect to any monies remaining unexpended in a capital facilities fee fund. The City shall also comply with the provisions of Government Code Sections 66001(e) and (f), or any applicable successor statutes, for refunding unexpended revenues.
(1187-CS, Rep&ReEn, 12/12/2013)
8-11-11 Master Plan fee programs.
(a) Master Plan fees shall be established to pay for the cost of backbone infrastructure improvements required to support the development of a Master Plan area identified in the General Plan or the environmental mitigation measures identified in a Master Plan environmental document.
(b) Such fees shall be administered in accordance with this chapter and deposited into separate account(s) to be used for designated capital improvements as set forth in the Master Plan Fee Nexus Study and in the applicable Master Plan.
(1187-CS, Rep&ReEn, 12/12/2013)