Chapter 3 — DEVELOPMENT IMPACT FEES

Section

9-3.10 Authority

9-3.20 Application

9-3.30 Findings

9-3.40 Definitions

9-3.50 Establishment of development impact fees

9-3.60 Calculation and payment of development impact fees (DIFs)

9-3.70 Exemptions and credits

9-3.80 Authority for additional mitigation

9-3.90 Annual findings

9-3.100 Review of Capital Improvement Plan Construction Program

9-3.110 Administrative review procedure

9-3.120 Appeal to City Manager

9-3.130 Refund of fees

9-3.140 Annual review

9-3.150 Termination of DIFs

The ordinance codified in this chapter is enacted pursuant to Cal. Gov’t Code §§ 66000 et seq.

(Ord. 2079-C-S, passed 3-25-14)

(A) It is intended that every person who develops or redevelops land in the city pay development impact fees established by this chapter, as provided herein.

(B) A development impact fee (DIF) is a fee charged in connection with the issuance of a building permit to defray the cost of certain public facilities required to serve new development within the city. Except as specifically provided herein, this chapter does not replace subdivision map exactions or other measures and exactions required to mitigate site-specific impacts of a development project; other regulatory, development and processing fees; funding required pursuant to a development agreement; funds collected pursuant to a reimbursement agreement for amounts that may exceed a development's share of public improvement costs; or assessment district proceedings, benefit assessments, or property taxes.

(C) No developer, property owner or other person or entity shall be eligible to receive a building permit unless such developer, property owner or other person or entity has first complied with all applicable provisions of this chapter. The requirements of this chapter shall be imposed prior to the issuance of each building permit. The city may impose such additional requirements and conditions on such approvals as are necessary or appropriate to implement the purposes of this chapter.

(Ord. 2079-C-S, passed 3-25-14)

The City Council finds and declares that:

(A) The city provides public services and constructs and maintains public facilities for the benefit of residents, businesses, and employees within the city.

(B) In 2003, the city adopted the current City of Antioch General Plan, which includes a Growth Management Element intended to ensure that new development in the city provides the financial support necessary to allow the city to supply the desired levels of public services and facilities necessary to achieve, sustain and continue to promote economic well-being and a high quality of life in the community.

(C) In accordance with its general plan, the city intends to expand and improve its public facilities to serve new development and to maintain and improve existing public facilities and the public services provided by the city that are supported by such public facilities.

(D) To implement the General Plan, the city intends to require every person who develops or redevelops land in the city to mitigate the impacts of such development or redevelopment on public facilities, by constructing public facilities in accordance with specific capital improvement programs, or paying fees that will be used to construct such facilities, or both.

(E) The city commissioned and adopted a Development Impact Fee Study ("DIF Study" or "Study"), which identifies specific public facilities needed to implement the city's General Plan, the estimated costs of such public facilities, and various possible fees that, if adopted, could be used to pay such costs. The Study may be amended from time to time to reflect changed conditions and circumstances and update and refine the public facilities cost estimates.

(F) The public facilities identified in the Study, as may be amended from time to time, are necessary to protect the public health, safety, and general welfare, to facilitate orderly urban development, to maintain or enhance existing levels of service, and to promote economic well-being within the city as a whole.

(G) The fees developed in the Study are based upon the city's determination that new development and redevelopment generates additional residents, employees, and structures which in turn place additional cumulative burdens upon the city's infrastructure, and its adopted policy that such development and redevelopment should pay its proportionate share of the cost for new or improved public facilities required to meet such burdens.

(H) The public facilities identified in the Study are part of an integrated system serving and providing benefits to planned development within the entire city.

(Ord. 2079-C-S, passed 3-25-14)

For the purpose of this chapter the following definitions shall apply unless the context clearly indicates or requires a different meaning.

APPLICANT. The person(s) or legal entity or entities, who may also be the property owner, who is applying for a building permit.

CITY. The City of Antioch, including its future boundaries.

CREDIT. Any amount credited against a DIF obligation for a development project in accordance with the provisions of § 9-3.70 of this chapter.

DIRECTOR or DIRECTOR OF COMMUNITY DEVELOPMENT. The Director of the Department of Community Development and the person(s) within the Department designated by the Director to exercise or carry out any of the Director's powers, authority, and responsibilities under this chapter.

DEVELOPMENT IMPACT FEE or DIF. Each and all of the DEVELOPMENT IMPACT FEES established by this chapter.

DEVELOPMENT IMPACT FEE STUDY, DIF STUDY, and STUDY. The DEVELOPMENT IMPACT FEE STUDY dated February 2014 and numbered EPS #20001, prepared by Economic and Planning Systems, Inc., and any present and future amendments, additions, and updates to said STUDY, all of which are deemed included in such definitions as used in this chapter, which is on file with the Department of Community Development and the City Clerk.

MIXED USES. Includes combinations of land use types in a single project or building.

PROJECT. The development or redevelopment proposal that is the subject of an application for a building permit.

PUBLIC FACILITIES. The public facilities identified in the STUDY, including a capital improvement project list and cost estimates of the public facilities, which may be funded by theDIFs, and may include public improvements, public services, and community amenities.

SENIOR HOUSING. Residential housing that is legally restricted and only made available for ownership or rental by person(s) 55 years of age or older.

(Ord. 2154-C-S, passed 9-25-18)

General.

(A) Except as otherwise provided in this chapter, an applicant for a building permit shall pay the following DIFs according and pursuant to the procedures set forth in this chapter:

(1) Administrative facilities fee.

(2) Parks and recreation facilities fee.

(3) Police facilities fee.

(4) Public works facilities fee.

(B) The amount of each DIF shall be as established by resolution of the City Council and shall be set forth in the city's current master fee schedule.

(C) The amount of each DIF shall be subject to adjustments based upon changes in estimated or actual costs including, but not limited to, construction costs, development schedules, availability of supplemental funds and other factors. Adjustments of the DIFs may also reflect changes in the basic infrastructure needs, in estimated revenues received pursuant to this chapter, as well as the availability or lack thereof of other funds.

(Ord. 2079-C-S, passed 3-25-14)

(A) Calculation of DIFs. The amount of each DIF assessed on an applicant for a building permit shall be calculated based on the city’s master fee schedule in effect at the time of issuance of the building permit.

(B) Time for payment of DIFs. All DIFs assessed on an applicant shall be paid by the applicant at the time of issuance of the building permit.

(C) Mixed uses. When a project will include both residential and non-residential uses, the Director shall determine the DIF amounts by applying to each use the applicable fee for that individual use and adding the totals of fees applicable to all of the uses within the project. For example, and by way of illustration only, a project that contains ten residential units and 20,000 square feet of retail commercial space would pay DIFs in a total amount equal to the sum of:

(1) The total of ten times the amount of each DIF per residential unit; plus

(2) The total of 20,000 times the amount of each DIF per square foot of retail commercial space.

(D) Accessory dwelling units. DIFs shall be collected for accessory dwelling units as follows:

(1) Accessory dwelling units on multifamily properties shall pay the lesser of the following:

(a) The multifamily rate;

(b) The product of the following formula:

(Square feet of accessory dwelling unit / Average square feet of all existing multi-family dwelling units on the same parcel) X Multifamily rate

(2) Accessory dwelling units on single- family properties shall pay the lesser of the following:

(a) The multifamily rate;

(b) The product of the following formula:

(Square feet of accessory dwelling unit / Square feet of primary dwelling) X Single-family rate

(3) DIFs shall not be collected on accessory dwelling units smaller than 750 square feet in area.

(Ord. 2079-C-S, passed 3-25-14; Am. Ord. 2181-C-S, passed 3-24-20)

(A) Exemptions. The following projects are exempt from the requirement to pay DIFs:

(1) Demolition of one existing residential structure and the building of one new residential structure on the same site where no additional dwelling units are created provided the demolished

structure was in use as a residential dwelling within two years prior to the issuance of the building permit for the new residential structure.

(2) Alteration, remodeling or reconstruction of a nonresidential structure which does not increase the gross floor area above what was in existence and in use on the effective date of this chapter.

(3) A project which the applicant establishes to the city's satisfaction will not generate any additional need for public facilities, services or amenities, or any other impact for which mitigation and/or

a fee is otherwise required. The burden of establishing, by factual proof to the satisfaction of the Director, the applicability and elements of this subsection shall be on the applicant. No exemption or limit shall be granted pursuant to this section unless a finding is made by the Director, based on satisfactory factual proof provided by the applicant, that the requirements of this section have been satisfied.

(4) There are no other exemptions to the DIF.

(B) Credits. The Director may, in conformance with any city credit and reimbursement policies, grant in favor of an applicant subject to the requirements of this chapter a credit against the obligation to pay DIFs, as provided below.

(1) For a project that involves the demolition of an existing structure and the construction of a new structure, the applicant shall be entitled to a credit in the amount of the applicable DIFs for the

structure to be demolished, provided that such structure has been in use in the past two years, and provided that no DIF shall be reduced below $0.

(2) An applicant may be entitled to a credit against DIFs required by this chapter to the extent that the applicant constructs, pursuant to city standards and requirements, public facilities included in

the project list used to determine the amount of the DIFs, as provided below:

(a) No credit may be granted unless and until the applicant has entered into an improvement agreement with the city to construct such public facilities. The city is not obligated to enter into such

improvement agreement with any applicant.

(b) A credit for construction of public facilities shall only apply to the DIF that would otherwise have been used to fund the construction of such public facilities.

(c) The credit amount shall not exceed the total of the engineering and construction costs, plus the applicable inflation adjustment, that would be reasonably incurred by the city in building the public facilities. If the total adjusted cost of the public facilities exceeds the total value of all the DIFs due from the applicant and subject to the credit, the applicant may be eligible for reimbursement of such excess costs from other building permit applicants whose properties will benefit from the public improvement, in conformance with any city credit and reimbursement policies. However, under no circumstances will the city:

1. Grant a credit for construction of public facilities that exceeds the total value of all of the DIFs due from the applicant and subject to the credit; or

2. Be obligated to reimburse an applicant for any costs of constructing a public facility under an improvement agreement required by §9-3.70(B)(2)(a).

(d) Upon a default under an improvement agreement, the applicant shall lose all unused DIF credits and shall compensate the city for all used DIF credits. The amount of the compensation shall

be equal to the total of: (i) 100% of the dollar amount of the DIF credits used; plus (ii) accrued interest from the date that the credit was used, compounded at an annual rate of 6%; plus (iii) liquidated damages in an amount equal to 20% of the dollar amount of the DIF credits used. The applicant shall pay the full amount of such compensation to the city within 30 days of the notice of default under the improvement agreement.

(e) Any credit earned by an applicant shall be applied by city only to building permits issued for projects specifically described in the improvement agreement required by 9-3.70(B)(2)(a)§ above.

Credits may not be transferred to other development projects unless explicitly approved by the city. The city may establish a reasonable fee for such transfer via resolution, following issuance of proper notice required by the Government Code.

(3) Credits granted under this chapter may not be combined with other city credits for oversized water or sanitary sewer utilities.

(C) Interest. No interest shall be deemed accrued nor be paid on account of any claim for award or payment of a credit under this chapter.

(Ord. 2079-C-S, passed 3-25-14)

Except as expressly provided herein, DIFs collected pursuant to this chapter do not replace existing development fees, including but not limited to the fees required under Title 7, Chapter 5 and Title 9, Chapter 4, Article 10 of this Code, specific area development impact fees, school impact fees, and utility demand fees or connection charges, nor do such DIFs limit requirements or conditions to provide site-specific mitigation of site-specific impacts imposed on development projects as part of normal development review and approval processes.

(Ord. 2079-C-S, passed 3-25-14)

Each year, on or before July 1, the City Council shall make the findings described in Cal. Gov’t Code § 66001(d)(1) for unexpended fees collected pursuant to this chapter.

(Ord. 2079-C-S, passed 3-25-14)

The Capital Improvement Plan Construction Program provides a general expression of the improvements needed to meet General Plan level of service standards and other established infrastructure needs. The improvements may be changed from time to time reflecting current conditions, and at least once every five years, the City Council shall conduct a comprehensive review the City of Antioch's Capital Improvement Plan Construction Program referenced in the DIF Study and increase or decrease the amount of the DIFs established by this chapter based on updated project costs, project needs and available alternative revenue sources and other economic considerations.

(Ord. 2079-C-S, passed 3-25-14)

An applicant may apply to the Director of Community Development for an adjustment to one or more of the DIFs assessed pursuant to this chapter. The following procedure shall be used to consider such an application:

(A) The application shall be in writing and filed with the Director no later than ten days before the public hearing on the first approval required for the project that is subject to the requirements of this chapter, or if no public hearing is required, ten days before submittal of the application for a building permit. The application shall state in detail the factual and legal basis for the requested adjustment(s).

(B) The Director shall consider the application at a meeting with the applicant within 30 days after the filing of the application. The applicant bears the burden of proof in presenting substantial evidence to support the application. The applicant must present evidence, in the form of technical information, to show that a DIF, or the amount of a DIF, is inappropriate for the particular development, which evidence shall be comparable in detail to the technical information found in the Development Impact Fee Study.

(C) The Director shall consider the following factors to determine whether or not to approve any adjustment to a DIF:

(1) The proposed use of the DIF;

(2) The characteristics of the development project which is the subject of this review procedure;

(3) The appropriate land use category for the development project which is the subject of this review procedure;

(4) The relationships between:

(a) The use of the DIF and the nature of the project;

(b) The need for the public improvements funded by the DIF and the nature of the project; and

(c) The costs of the public improvements funded by the DIF and the portion of such costs attributable to the DIFs that would normally be assessed on the project.

(5) Whether the DIF is reasonably related in extent to the likely impacts of the proposed development project.

(D) The Director is authorized to reduce the amount of a DIF based upon the determination made pursuant to this section.

(E) The decision of the Director shall be appealable to the City Manager pursuant to §9-3.120 of this chapter.

(Ord. 2079-C-S, passed 3-25-14)

(A) A person appealing a decision of the Director made pursuant to §9-3.110 of this chapter (the "appellant") shall file a written appeal with the City Manager, stating the factual and legal basis of the appeal, within ten calendar days following the decision of the Director. A person seeking judicial review shall first seek an appeal hearing under this section.

(B) The City Manager, or a hearing officer appointed by the City Manager, shall set the time and place for the hearing, notice that hearing as is required under the zoning ordinance for consideration of a variance application, notify the appellant and any other relevant parties, conduct the appeal hearing, prepare written findings of fact and a written decision on the matter, and shall preserve the complete administrative record of the proceeding. The hearing officer shall consider relevant evidence presented by the appellant and by the Director.

(C) The City Manager shall consider the factors listed in §9-3.110(C) of this chapter in making the decision to affirm or adjust the DIFs.

(D) The decision of the City Manager shall be the final decision of the city.

(E) Sections 9-3.110 and 9-3.120 provide an administrative remedy which must be exhausted prior to compliance with the procedure provided in Cal. Gov’t Code §§ 66020 and 66021.

(Ord. 2079-C-S, passed 3-25-14)

(A) If a building permit expires, is canceled, or is voided without the permitted construction thereunder having occurred, and any DIFs paid pursuant to this chapter have not been expended, the Director shall, upon the written request of the applicant, order the refund of all DIFs actually paid by the applicant, except for administrative facilities fees, which shall not be subject to any refunds. A written refund request shall only be honored if actually received by the Director within a period of one year from the date of the expiration, cancellation, or voiding of the building permit(s) for which the DIFs were paid. Following the expiration of the one year period, no refunds shall be granted on the basis of expired, cancelled or voided permits or approvals. If a partial refund is granted under the provisions of this section, the property involved shall be credited with the amount paid but not refunded against any similar DIFs due for the same or subsequent use.

(B) During the annual review of the DIFs pursuant to §9-3.120 of this chapter, the City Council shall make the findings required by Cal. Gov’t Code § 60001 (or any successor statute) with respect to any DIF revenue not expended five years or more after it was paid. If the City Council cannot make the required findings, it shall authorize a refund of the unexpended DIF revenue to the then current record owner of the property for which the DIF was paid, or otherwise allocate the unexpended revenues, as provided in Cal. Gov’t Code § 66001 (or any successor statute).

(Ord. 2079-C-S, passed 3-25-14)

The DIFs, the accumulated fee funds and their appropriation, and supporting documentation, including the study, shall be reviewed annually by the City Council.

(Ord. 2079-C-S, passed 3-25-14)

The city shall not collect the DIFs established by this chapter once funds sufficient to construct new development's share of all public facilities described in the study have been collected.

(Ord. 2079-C-S, passed 3-25-14)