Chapter 7.16 — DEVELOPMENT FEES

Fee programs and benefit areas shall be established in accordance with the following procedures. Fee programs and benefit areas for the same public facility should ordinarily be established simultaneously by a single resolution.

• A. The responsible agency or department shall prepare a proposed fee program and/or benefit area to be submitted to the Planning Commission for its advice and comments. The fee program shall include the estimated cost of the facility, which cost shall be deemed fixed for purposes of the program unless the program is amended pursuant to Section 7.16.020, and shall describe the facility, its capacity, its location, and the projected date of its completion. A fee program may include provisions for construction of a facility or provision of land for a facility by a developer and for reimbursement from fees or other appropriate City sources for any costs above the prorated share of the costs attributable to such developer's property. A fee program may provide that the City may advance funds from appropriate sources to fund the cost of constructing the facility and acquiring land therefor and reimburse such sources from fees. A fee program shall provide that all funds received and any interest derived therefrom shall be used solely for the purpose of constructing or acquiring the facility described therein. Where applicable to the facility, assessment districts or other acceptable methods of financing shall be taken into consideration in establishing fee programs. The proposal shall be supported by adequate engineering studies to demonstrate the appropriateness of the proposed benefit area and fee distribution. No public hearing of the Planning Commission or notice of its consideration of the matter shall be required, provided that the Planning Commission may receive such testimony as it deems appropriate.

• B. The responsible agency or department shall revise the proposed fee program and benefit area as it deems appropriate following the receipt of the Planning Commission advice and comments.

• C. At least 15 calendar days' notice of a public hearing before the City Council shall be given by United States mail to each owner of property as shown on the last equalized assessment roll in a fee area located within the proposed benefit area where such property may be subject to a fee. The notice shall contain preliminary information relating to the boundaries of the benefit area, type, capacity and other pertinent information on the facility, estimated cost of the facility, method of fee apportionment, and, if applicable, proposed dedication of land or construction of the facility by a developer. No property shall be included in the fee area unless notice has been given in accordance with this subsection.

• D. At the public hearing, the City Council shall review the proposed fee program and benefit area and any advice and comments from the Planning Commission and receive the testimony of any interested person.

• E. The City Council may, by resolution, adopt the proposed fee program and benefit area as prepared by the responsible agency or department or as revised by the City Council, may reject the proposed fee program and benefit area, may continue the matter to a time certain for further consideration, or may refer the matter to the responsible agency or department or the Planning Commission for further study and recommendation. When the matter is

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City of Lake Forest, CA

SUBDIVISIONS

§ 7.16.010

§ 7.16.020

referred for further study and recommendation, the hearing shall either be continued to a time certain or shall be renoticed, pursuant to subsection C of this section. If substantial changes not discussed at the initial hearing are proposed, no such change shall be adopted by the City Council until after notice of such change is given in the manner described in subsection C of this section, and all interested persons have been given an opportunity to be heard with respect to such changes.

• F. Any property may be a part of more than one benefit area and fee program. Such benefit areas and fee programs need not be adopted at the same time.

• G. The resolution adopting the fee program shall incorporate the program and a certified copy of such resolution shall be recorded with the Orange County Recorder.

• H. A fee program may provide for automatic periodic adjustment of fees based on the Real Estate Research Council of Southern California's Office Building Construction Cost Index, without further action of the City Council, including but not limited to public notice or hearing.

• I. No fee program shall conflict with any preexisting agreement for provision of facilities between the City and a developer.

• (Ord. 171 § 1, 2007; Ord. 247 § 54, 2013)

Projects may develop over a period of many years and conditions may change with respect to needed facilities and to costs for facilities. Developers may initiate requests for changes in permitted residential density, street locations, uses, and other matters. The City may change requirements and criteria for facilities needed to support development. Other changes may occur which will alter the need for facilities or the equity of the distribution of costs of such facilities or both. In order to provide the flexibility to accommodate such changes in the most equitable manner possible, fee programs and benefit areas may be modified as set forth below:

• A. Subsections A through G of Section 7.16.010 shall apply to proposals for modification.

• B. Modifications to fee programs and benefit areas may include any or all of the following:

  1. Change in the benefit area;

  2. Change in the fee program to reallocate the pro rata shares of the costs of the facility, provided that there shall be no increase in fees imposed on any parcel of property unless the permitted uses have been changed so as to increase the contribution of the property to the need for the facility and the benefits to be derived by the property from the facility;

  3. Change in the location or capacity of the facility;

  4. Change in any provisions that a developer will dedicate land or construct a facility;

  5. Change in the estimated cost of providing the facility, in which case, the fee may be increased for those parcels that have not already paid such fees or had been conditioned by a tentative tract map or discretionary permit to pay a specific fee.

• C. If fees are reduced, any person who has paid such fees shall, upon written demand

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City of Lake Forest, CA

LAKE FOREST CODE

§ 7.16.020

§ 7.16.060

submitted to the responsible agency or department, be entitled to a refund of any excess paid.

• (Ord. 171 § 1, 2007)

• A. No tentative parcel map or tentative tract map proposed in a fee area where a fee program and a benefit area have been established shall be approved unless the map is conditioned to require the subdivider to enter into a secured agreement prior to recordation. The agreement shall require payment of such fees prior to issuance of building permits. The subdivider may pay such fees prior to recordation in lieu of entering into an agreement.

• B. No tentative parcel map or tentative tract map shall be approved in a fee area where a fee program and benefit area have not been established unless such map is conditioned so as to require payment of such fees as may be established. Such condition shall require that, prior to recordation of the map, the subdivider shall enter into an agreement to pay such fees upon such establishment, or upon issuance of building permits, whichever occurs last, and shall post security therefor.

• (Ord. 171 § 1, 2007)

• A. No discretionary permit, as that term is used in Section 9.184.010 of this Code, which would allow development of any project which would contribute to the need for the facility for which a fee is required shall be approved for property located in a fee area where a benefit area and fee program have been established except where a previously approved subdivision map requires payment of fees or a subdivision map will be required prior to development, unless the permit is conditioned to require payment of such fees prior to the issuance of building permits.

• B. No such discretionary permit shall be approved in a fee area where a fee program and benefit area have not been established unless such permit is conditioned so as to require the applicant to pay such fees as may be established. Such condition shall require that, prior to issuance of building permits, the applicant shall enter into an agreement to pay such fees upon establishment of a program and shall post security therefor.

• (Ord. 171 § 1, 2007)

No building permit shall be issued in a fee area where a fee program and benefit area have been established unless such fees have been paid.

(Ord. 171 § 1, 2007)

Notwithstanding any other provision of this chapter, no community facilities fees relating to a residential project shall be required to be paid prior to final inspection or issuance of certificates of occupancy, whichever is later, unless permitted by Government Code Section 66007. Unless Government Code Section 66007 permits a requirement that fees be paid at an earlier time, any provision of this chapter requiring payment of fees at such time shall be deemed to require such payment at time of final inspection or the time of issuance of the certificate of occupancy,

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City of Lake Forest, CA

SUBDIVISIONS

§ 7.16.060

§ 7.16.060

whichever is later. This section shall remain in effect only until January 1, 1993, or such other time as Government Code Section 66007, as adopted by Chapter 685, 1986 Statutes, is repealed. (Ord. 171 § 1, 2007)

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City of Lake Forest, CA

SUBDIVISIONS

§ 7.18.010

§ 7.18.040