Chapter 25.46 — PUBLIC FACILITIES IMPACT FEES

Words, when used in this chapter and in resolutions adopted thereunder, shall have the following meanings:

"Development permit" means any building permit, electrical permit, plumbing permit, demolition permit, moving permit, or any other permit required by this Code for issuance before construction, reconstruction, remodeling, moving structures or any similar activity can be lawfully undertaken on a parcel of property in the City.

"Development project" means any project undertaken for the purpose of development. "Development project" includes a project involving the issuance of a permit for construction or reconstruction, but not a permit to operate.

"Fee" means a money exaction, other than a tax or special assessment, which is charged by the City to an 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.

"Public facility" includes public improvements, public services, and community amenities. (Ord. 2000, 2021; Ord. 2046, 3/2/2026)

Except as otherwise provided in this chapter, public facilities impact fees shall be paid pursuant to this chapter before the issuance of any development permit. (Ord. 2000, 2021; Ord. 2046, 3/2/2026)

A. The following public facilities impact fees are established and imposed on the issuance of development permits within the City as determined by resolution of the Council:

1. General Facilities and Equipment. A development fee is established for general
facilities and equipment.

2. Libraries. A development fee is established for library facilities, equipment, and
materials.

3. Police. A development fee is established for police facilities and equipment.

4. Parks and Recreation. A development fee is established for parks and recreation
facilities and equipment.

5. Streets and Traffic. A development fee is established for streets and traffic facilities
and equipment.

6. Fire. A development fee is established for fire facilities and equipment.

7. Storm Drainage. A development fee is established for storm drainage facilities and
equipment.

B. In establishing and imposing the schedule and application of the public facilities impact fees by resolution, the Council will do the following:

1. Identify the purpose of the fee;

2. Identify the use to which the fee is to be put;

3. Determine how there is a reasonable relationship between the fees used and the type
of development on which the fee is imposed; and

4. Determine that there is a reasonable relationship between the need for the public
facility and the impacts caused by the type of development project on which the fee
is imposed.
(Ord. 2000, 2021; Ord. 2046, 3/2/2026)

A. Upon receipt of a fee subject to this chapter, the City shall deposit, invest, account for and expend the fees pursuant to Government Code Section 66006. The City shall retain fee interest accrued and allocate it to the accounts for which the original fee was imposed.

B. Each fee collected pursuant to this chapter shall be deposited in a special fund created to
hold the revenue generated by each such fee. Moneys within each such fund may be
expended only by appropriation by the Council for specific projects which are of the same
category as that for which the money was collected. In this regard, the following special
funds are created and established for the purposes indicated:

1. A General Facilities and Equipment Fund Is Established. The general facilities and
equipment fund is a fund for payment of the actual or estimated costs of constructing
and improving the general municipal facilities within the City, including any required
acquisition of land.

2. A Library Facilities, Materials, and Equipment Fund Is Established. The library
facilities, material, and equipment fund is a fund for payment of the actual or
estimated costs of library facilities, materials and equipment, including any required
acquisition of land.

3. A Police Facilities and Equipment Fund Is Established. The police facilities and
equipment fund is a fund for payment of the actual or estimated costs of police
facilities and equipment, including any required acquisition of land.

4. A Parks and Recreation Facilities and Equipment Fund Is Established. The parks and
recreation facilities and equipment fund is a fund for the payment of the actual or
estimated costs of parks and recreation facilities and equipment, including any
required acquisition of land.

5. A Streets and Traffic Facilities and Equipment Fund Is Established. The streets and
traffic facilities and equipment fund is a fund for the payment of the actual or
estimated costs of streets and traffic facilities and equipment, including any required
acquisition of land.

6. A Fire Facilities and Equipment Fund Is Established. The fire facilities and equipment
fund is a fund for payment of the actual or estimated costs of fire facilities and
equipment, including any required acquisition of land.

7. A Storm Drainage Facilities and Equipment Fund Is Established. The storm drainage facilities and equipment fund is a fund for payment of the actual or estimated costs of constructing and improving the storm drain facilities and for associated equipment, including any required acquisition of land. C. The City Manager shall provide a report on these funds to the Council no less than once a year in accordance with Government Code Section 66006. (Ord. 2000, 2021; Ord. 2046, 3/2/2026)

A. The uses in the development project approved by the City shall be utilized in the computation of fees required to be paid with respect to any property. If a parcel contains more than one use, then the applicable fees shall be prorated by square footage or dwelling units, as appropriate, attributable to each use.

B. The fees shall be based on the uses, the number of dwelling units, and the amount of square
footage to be located on the property after completion of the development project. New
development that, through demolition or conversion, will eliminate existing development
is entitled to a fee credit offset if the existing development is a lawful use under this title,
including a nonconforming use.

C. New development that will replace development that was partially or totally destroyed by
fire, flood, earthquake, mudslide, or other casualty or act of God, is entitled to a fee credit
offset if the development that was partially or totally destroyed was a lawful use under this
title, including a nonconforming use, at the time of the destruction.

D. All fees due under this chapter shall be determined and calculated by the Director or
designee.
(Ord. 2000, 2021; Ord. 2046, 3/2/2026)

No fee adopted pursuant to this chapter shall be applied by the City to the reconstruction of any residential, commercial or industrial development project that is damaged or destroyed as a result of a natural disaster as declared by the Governor of the State insofar as the reconstruction is substantially equivalent in size and use as defined under Government Code Section 66011. (Ord. 2000, 2021; Ord. 2046, 3/2/2026)

A. The following shall be exempted from payment of applicable public facilities impact fees:

1. Alterations, renovations or expansion of an existing residential building or structure
where no additional dwelling units are created and the use is not changed.

2. Alterations or renovations of an existing commercial or industrial building or
structure where no expansion occurs and the use is not changed.

B. For purposes of this section:

1. "Expansion" shall be defined as any increase in the gross floor area of the existing
building or structure.

2. "Change of use" shall be defined as a change or intensification of the use of a portion
or all of a building or structure in such a way that additional parking is required by
this title.
(Ord. 2000, 2021; Ord. 2046, 3/2/2026)

A. Fees shall be paid at or before the time of issuance of the first required development permit for a development project. However, if the development project is a residential project as defined in Government Code Section 66007, then the time for payment of fees shall be governed by the provisions of Section 66007.

B. The fee shall be determined by the fee schedule in effect on the date the vesting tentative
map or vesting parcel map is approved, or the date a development permit is issued.

C. When application is made for a new building permit following the expiration of a
previously issued building permit for which fees were paid, a new fee payment shall not be
required, unless the fee schedule has been amended during the interim; in this event, the
appropriate increase or decrease shall be applied to permit issuance.

D. In the event that development has already lawfully occurred on a parcel for which public
facilities impact fees were imposed, fees shall be required only for additional square
footage of development that was not included in computing a prior fee.

E. When a fee is paid for a development project and that project is subsequently reduced so
that it would have been entitled to a lower fee, the City shall issue a prorated refund of the
paid fee.

F. When a fee is paid for a development project and the project is subsequently and
irrevocably abandoned in writing without any further activity beyond the obtaining of a
first development permit, the payer shall be entitled to a refund of the fee paid, minus the
administrative portion of the fee. A written request for a refund of a fee paid in connection
with an expired or abandoned development project must be made to the Director within
120 days of the expiration of the permit. Failure to submit the request within this time limit
shall constitute a waiver of any right to any refund of the fee, and the fee shall be retained
in and expended from the fund to which it was deposited.
(Ord. 2000, 2021; Ord. 2046, 3/2/2026)

A. In-Lieu Credit.

1. A developer that has been required by the City to construct any facilities or
improvements, or a portion thereof, referenced in a resolution adopted pursuant to this
chapter as a condition of approval of a development permit may request an in-lieu
credit of the specific public facilities impact fee for the same development. Upon
request, an in-lieu credit of fees shall be granted for facilities or improvements that
mitigate all or a portion of the need therefor that is attributable to and reasonably
related to the given development.

2. Only costs proportional to the amount of the improvement or facility that mitigates
the need therefor attributable to and reasonably related to the given development shall be eligible for in-lieu credit, and then only against the specific, relevant fees involved
to which the facility or improvement relates.

3. Fees required under this chapter shall be reduced by the actual construction costs of
the facilities or improvements that relate to the fee, as demonstrated by the applicant
and reviewed and approved by the director of community development, and
consistent with the provisions of subsections A.1 and A.2, above. Subject to the
applicable provisions of subsection B, below, if the cost of the facilities or
improvements is greater than required relevant fees, this chapter does not create an
obligation on the City to pay the applicant the excess amount.

4. An amount of in-lieu credit that is greater than the specific fee required under this
chapter may be reserved and credited toward the fee of any subsequent phases of the
same development, if determined appropriate by the Director. The Director may set a
time limit for reservation of the credit.

B. Developer Construction of Facilities Exceeding Needs Related to Development Project. Whenever an applicant is required, as a condition of approval of a development permit, to construct any facility or improvement (or a portion thereof) referenced in a resolution adopted which is determined by the City to exceed the need therefor attributable to and reasonably related to the given development project, a reimbursement agreement with the applicant and a credit against the specific relevant fee which would otherwise be charged pursuant to this chapter on the development project shall be offered. The credit shall be applied with respect to that portion of the improvement or facility which is attributable to and reasonably related to the need therefor caused by the development, and shall be determined, administered and processed in accordance with and subject to the provisions of Section 25.46.140. The amount to be reimbursed shall be that portion of the cost of the improvement or facility which exceeds the need therefor attributable to and reasonably related to the given development. The reimbursement agreement shall contain terms and conditions mutually agreeable to the developer and the City and shall be approved by the Council. Reimbursement shall be provided from fees which are deposited into the relevant fund or funds by other applicants for development projects.

C. Site-Related Improvements. Credit shall not be given for site-related improvements,
including, but not limited to, traffic signals, right-of-way dedications, or providing paved
access to the property, which are specifically required by the project to serve it and which
do not constitute facilities or improvements specified in the resolution referenced in Section
25.46.030 of this chapter.

D. Determination of Credit. The developer seeking credit and/or reimbursement for
construction of improvements or facilities, or dedication of land or rights-of-way, shall
submit such documentation, including, without limitation, engineering drawings,
specifications, and construction cost estimates, and utilize such methods as may be
appropriate and acceptable to the Director to support the request for credit or
reimbursement. The Director shall determine credit for construction of improvements or
facilities based upon either these cost estimates or upon alternative engineering criteria and
construction cost estimates if the Director determines that such estimates submitted by the
developer are either unreliable or inaccurate. The Director shall determine whether
facilities or improvements are eligible for credit or reimbursement.

E. Time for Making Claim for Credit. Any claim for credit must be made no later than the application for a building permit. Any claim not so made shall be deemed waived.

F. Transferability of Credit — Council Approval. Credits shall not be transferable from one
project or development to another.

G. Appeal of Determinations of Director. Determinations made by the Director pursuant to
this section may be appealed to the Planning Commission pursuant to Chapter 25.98
(Appeals and Calls for Review) within 10 days of the determination of the Director.
(Ord. 2000, 2021; Ord. 2046, 3/2/2026)

A. Funds collected from public facilities impact fees shall be used for the purpose of:

1. Paying the actual or estimated costs of constructing or improving the public facilities
within the City or purchasing materials or equipment for the public facilities within
the City to which the specific fee or fees relate, including any required acquisition of
land or rights-of-way therefor; or

2. Reimbursing the City for the development project's share of those public facilities
already constructed by the City or to reimburse the city for costs advanced, including,
without limitation, administrative costs incurred with respect to a specific public
facility project; or

3. Reimbursing other developers who have constructed public facilities described in the
resolution, where those facilities were beyond those needed to mitigate the impact of
the earlier developer's project or projects.

B. In the event that bonds or similar debt instruments are issued for advanced provision of
public facilities for which public facilities impact fees may be expended, impact fees may
be used to pay debt service on such bonds or similar debt instruments to the extent that the
facilities provided are of the type to which the fees involved relate.
(Ord. 2000, 2021; Ord. 2046, 3/2/2026)

A. The City Manager shall report to the Council once each fiscal year regarding any portion of a fee remaining unexpended or uncommitted in an account five or more years after deposit and identify the purpose for which the fee was collected. The Council shall make findings at least once every fifth year thereafter with respect to any portion of the fee remaining unexpended or uncommitted in its account five or more years after deposit of the fee, to identify the purpose to which the fee is put and to demonstrate a reasonable relationship between the fee and the purpose for which it was charged.

B. A refund of unexpended or uncommitted fees for which a need cannot be demonstrated
along with accrued interest may be made to the current owner(s) of the development
project(s) on a prorated basis. The City Manager may refund unexpended and uncommitted
fees that have been found by the City Council to be no longer needed, by direct payment or
by offsetting other obligations owed to the City by the current owners of the development
project.

C. If the administrative costs of refunding unexpended and uncommitted revenues collected pursuant to this section exceed the amount to be refunded, the Council, after a public
hearing for which notice has been published pursuant to Government Code Section 6061
and posted in three prominent places within the area of the development project, may
determine that the revenues shall be allocated for some other purpose for which the fees
are collected subject to this chapter that serve the project on which the fee was originally
imposed.
(Ord. 2000, 2021; Ord. 2046, 3/2/2026)

A. The City may adopt or incorporate a capital improvement plan which indicates the approximate location, size, time of availability, and estimates of costs for public facilities or improvements to be financed with public facility impact fees.

B. The City Manager shall annually submit the capital improvement plan to the Council for adoption at a noticed public hearing.

C. The public facility impact fee schedule adopted by the Council by resolution shall be annually reviewed by the Council for consistency with the capital improvement plan, and any necessary amendments shall be made by resolution of the Council. (Ord. 2000, 2021; Ord. 2046, 3/2/2026)

The adoption of public facility impact fees is a legislative act and shall be enacted by resolution after a public hearing before the Council. (Ord. 2000, 2021; Ord. 2046, 3/2/2026)

A. A developer of any project subject to the fee described in this chapter may apply to the Director for reduction or adjustment to that fee, or a waiver of that fee, based upon the absence of any reasonable relationship or nexus between the impacts of the development and either the amount of the fee charged or the type of facilities to be financed.

B. The application shall be made in writing and filed with the Director not later than:

1. Twenty days prior to the public hearing before the Review Authority on the
development project application under this title; or

2. If no public hearing is required by this title, at the time of the filing of the application
for a development permit;

3. The application shall state in detail the factual basis for the claim of waiver, reduction,
or adjustment.

C. The Review Authority shall consider the application at a public hearing after the filing of
the fee adjustment application. If a reduction, adjustment, or waiver is granted, any change
in use within the development project shall invalidate the waiver, adjustment, or reduction
of the fee.
(Ord. 2000, 2021; Ord. 2046, 3/2/2026)

Article 4
Regulations For Specific Land Uses And Activities