Chapter 7B — DEVELOPMENT IMPACT FEES.

Sec. 7B-1. - Findings.

The city council of the City of Colusa does hereby find and declare as follows:

(a)

The State of California, through the enactment of Government Code Section 66000 et seq. has conferred upon local government units authority to adopt fees imposed on a specific project 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.

(b)

The imposition of development impact fees is one of the preferred methods of ensuring that development bears a proportionate share of the cost of public facilities and service improvements necessary to accommodate such development. This must be done in order to promote and protect the public health, safety, and welfare.

(c)

This chapter recognizes that all new development within the city will result in additional growth and that such growth will place additional burdens on various city facilities, infrastructure, and services. This chapter further recognizes the types of land development that will generate impacts necessitating the acquisition of land and construction of public facilities and expansion of services and infrastructure in order to meet and accommodate them.

(d)

All land uses within the city should bear a proportionate financial burden in the construction and improvement of public facilities and services necessary to serve them.

(e)

The development impact fees established by this chapter are based upon the costs which are generated through the need for new facilities and other capital acquisition costs required, incrementally, by new development within the City of Colusa.

(f)

The fees established by this chapter do not exceed the reasonable cost of providing public facilities occasioned by development projects within the City of Colusa.

(g)

The fees established by this chapter relate rationally to the reasonable cost of providing public facilities occasioned by development projects within the City of Colusa.

(h)

The fees established by this chapter are consistent with the goals and objectives of the city's general plan and are designed to mitigate the impacts caused by new development throughout the city. Development impact fees are necessary in order to finance the required facilities and service improvements and to pay for new development's fair share of their construction costs.

(Ord. No. 406, § 1.)

Sec. 7B-2. - Definitions.

For purposes of this chapter the following terms, phrases, words and their derivations shall have the means respectively ascribed to them by this section:

(a)

"Development project" means any project involving the issuance of a building permit for construction or major reconstruction or remodeling for single and multifamily residential units, commercial or industrial buildings. The term "development project" shall also include permits for erection of manufactured housing or structures, modular and/or mobile homes as defined by California state law and any other structure moved into the city.

(b)

"Fee" or "development impact fee" means a monetary exaction, other than a tax or special assessment which is charged by the City of Colusa 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, pursuant to the Mitigation Fee Act (Government Code Section 66000 et seq.). A fee does not include fees specified in Section 66477 of the California Government Code (the Quimby Act, relating to payments by subdividers for park and recreational purposes), fees for processing applications for governmental regulatory actions or approvals, or fees collected under development agreements adopted pursuant to Title 7, Chapter 4, Article 2.5 (commencing with Section 65864) of the California Government Code.

(c)

"Change of land use" means a change in the use, purpose, character, or intensity of the use of a building or site, and may occur despite the lack of change in the general zoning classification of the use or the land use designation for purposes of the general plan.

(d)

"Major reconstruction or remodeling" means the repair and/or replacement of a building such that the square footage of building area is increased by not less than five hundred square feet.

(e)

"Historically significant property" means a building or structure significant in American or Californian history, architecture, engineering or culture, which is listed in the federal National Register of Historic Places or is designated as a Colusa Heritage Structure by resolution of the council.

(Ord. No. 406, § 1; Ord. No. 422, § 1.)

Sec. 7B-3. - Establishment of fees.

The following development impact fees are hereby established and imposed on the issuance of all building permits for development within the City of Colusa to finance the cost of the following categories of public facilities and improvements required by new development.

(a)

Streets and Thoroughfares. A development impact fee is hereby established for streets and thoroughfares, to recover the costs associated with providing street and traffic improvements to new development.

(b)

Drainage Facilities. A development impact fee is hereby established for drainage facilities.

(c)

Wastewater Treatment Facilities. A development impact fee is hereby established for wastewater treatment facilities.

(d)

Wastewater Collection and Connection. A development impact fee is hereby established for wastewater collection facilities.

(e)

Water Collection and Connection. A development impact fee is hereby established for water connection.

(f)

Park and Recreation Facilities. A development impact fee is hereby established for park and recreation facilities.

(g)

Capital Facilities Fee. A capital facilities development impact fee ("capital facilities fee" is established to pay for general public facilities (police, fire protection, community center, city hall and corporation yard facilities) required by the city of Colusa to provide general public services to new development in the city of Colusa.

(Ord. No. 406, § 1.)

(Ord. No. 467, § 1, 6-21-2011)

Sec. 7B-4. - Imposition of development impact fee.

(a)

Prior to the issuance of a building permit for any development project or any major reconstruction or remodeling, and prior to any change in find use, the applicant for such permit or owner of the property on which the change in land use is to occur shall pay the appropriate development impact fees.

(b)

No permits or extension of permits for the activities referenced in subsection (a) of this section shall be granted unless and until the appropriate development impact fees hereby required shall have been paid to the city.

(c)

Major reconstruction or remodeling projects shall pay the corresponding development impact fee based upon a per square footage calculation for the increase in square footage with a minimum charge equivalent to one hundred square feet.

(d)

A change of land use project shall pay the difference between the current development impact fee for the then existing land use compared to the current development impact fee for the changed or succeeding land use. Provided, that if the fee for the changed land use is less than that of the then existing land use, no refund shall be made.

(Ord. No. 406, § 1; Ord. No. 422, § 2.)

Sec. 7B-5. - Creation of special funds.

Each fee collected pursuant to this chapter shall be deposited in a special fund created to hold the revenue generated by each such fee. Monies within each such fund may be expended only by appropriation by the city 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 hereby created and established for the purpose indicated:

(a)

A street and thoroughfare fund is hereby established. The street and thoroughfare fund is a fund for payment of the actual or estimated costs of constructing and improving streets and thoroughfares.

(b)

A drainage facilities fund is hereby established. The drainage facilities fund is a fund for payment of the actual and estimated costs of constructing and improving the drainage facilities within the city, including any required acquisition of land.

(c)

A wastewater treatment facilities fund is hereby established. The wastewater treatment facilities fund is a fund for payment of the actual and estimated costs of constructing and improving the sewage treatment facilities within the city, including any required acquisition of land.

(d)

A wastewater collection and connection fund is hereby established. The wastewater collection facilities fund is a fund for payment of the actual and estimated costs of constructing and improving the wastewater collection facilities within the city, including any required acquisition of land.

(e)

A water collection and connection fund is hereby established. The water facilities fund is a fund for payment of the actual and estimated costs of acquiring facilities and equipment to pump and deliver potable water, including any required acquisition of land.

(f)

A park and recreation facilities fund is hereby established. The park and recreation facilities fund is a fund for payment of the actual and estimated costs of acquiring equipment, and constructing and improving the park and recreation facilities within the city, including any required acquisition of land, as well as grading, irrigation and turfing costs associated herein.

(g)

A capital facilities fund is hereby established. The capital facilities fund is a fund for payment of the actual or estimated costs of law enforcement facilities and equipment, fire facilities and equipment, the renovation of city hall, the construction of a new public works building, construction of a new community center and moving of the corporation yard facilities.

(Ord. No. 406, § 1.)

(Ord. No. 467, § 2, 6-21-2011)

Sec. 7B-6. - Expenditure and reimbursement of fees.

(a)

Fees subject to this chapter shall be deposited, invested, accounted for and expended pursuant to California Government Code Section 66006. The fees shall be held in separate public facility funds to be expended for the purpose for which they were collected. Any interest income earned by moneys in the capital facilities fund shall also be deposited in that fund and shall be expended only for the purpose for which the fee was originally collected.

(b)

For the fifth fiscal year following the first deposit into the account or fund, and every five years thereafter, the city council shall make findings with respect to that portion of the account or fund remaining

unexpended, pursuant to California Government Code Section 66001.

The city council shall order a refund of unexpended or uncommitted fees for which a need cannot be demonstrated, along with accrued interest, to the then current owner(s) of lots or units of the development project(s) on a prorated basis. The finance director may refund these fees by direct payment or by offsetting other obligations owed to the city by the then-current record owner(s) of the development project(s).

(Ord. No. 406, § 1.)

Sec. 7B-7. - Fee payment.

The fees established pursuant to this chapter shall be paid for the property on which a development project is proposed at the time of the issuance of any required building permit, except as otherwise provided below. Provided, however, that fees imposed on residential development shall be collected in accordance with the provisions of California Government Code Section 66007, as the same presently exists or may hereafter be amended from time to time.

All fees collected shall be promptly transferred or deposited into the appropriate funds referenced in section 7B-5.

(Ord. No. 406, § 1.)

Sec. 7B-8. - Use of funds.

(a)

Funds collected from development impact fees shall be used for the purpose of:

1)

Paying the actual or estimated costs of construction and/or improving the public facilities within the city to which said specific fee or fees relate, including any required acquisition of land or rights-of-way therefore;

2)

Reimbursing the city for the development'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 adopted pursuant to section 7B-3, where those facilities were beyond that needed to mitigate the impact of said 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 development 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.

(c)

Funds may be used to provide refunds as described in section 7B-9.

(Ord. No. 306, § 1.)

Sec. 7B-9. - Refund of fees paid.

a)

If a building permit expires without commencement of construction, then the fee payer shall be entitled to a refund, without interest, of the impact fee paid as a condition for its issuance, except that the city shall retain one percent of the fee to offset a portion of the costs of collection and refund. The feepayer must submit an application for such a refund to the city clerk within thirty calendar days of the expiration of the permit. Failure to timely submit the required application for refund shall constitute a waiver of any right to the refund.

(Ord. No. 406, § 1.)

Sec. 7B-10. - Exemptions.

No fee shall be due for the reconstruction of any existing 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 of California, a local emergency declared by the city council or from fire, flood or other private calamity. Any reconstruction, or portion thereof, which is not substantially equivalent to the damaged or destroyed property shall be deemed to be new construction and shall be subject to the applicable fee.

Any claim of exemption with respect to any one or more of the fees referenced in section 7B-3 must be made no later than the time of application for a building permit.

(Ord. No. 406, § 1.)

Sec. 7B-11. - Developer construction of facilities.

(a)

In-Lieu Fee Credits for Construction of Improvements.

(1)

A developer that has been required by the city to construct any facilities or improvements (or a portion thereof) described in the resolution adopted pursuant to section 7B-3 as a condition of approval of a development permit may request an in-lieu credit of the specific development impact fee(s) involved 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 therefore 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 therefore attributable to and reasonably related to the given development shall be eligible for in-lieu credit, and then only against the specific relevant fee(s) 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 said fees, as demonstrated by the applicant and reviewed and approved by the city. If the cost of the facilities or improvements is greater than the 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(s) 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 city. The city may set a time limit for reservation of the credit.

(5)

Credits shall be calculated by the city in accordance with the fee schedule set forth in the resolution to be adopted pursuant to section 7B-3.

(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) described in the resolution adopted pursuant to section 7B-3 which facility or improvement is determined by the city to exceed the need therefore 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 that is attributable to and reasonably related to the need therefore cased by the development. The amount to be reimbursed shall be that portion of the cost of the improvement or facility that 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 city attorney.

(c)

Site Related Improvements.

Credit shall not be given for site-related improvements, including, but not limited to, traffic signals, right-ofway dedications, or providing paved access to the property, which are specifically required by the project in order to serve it and do not constitute facilities or improvements specified in the resolution referenced in section 7B-3 hereof.

(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 city to support the request for credit or reimbursement. The city shall determine the credit for construction of improvements or facilities based upon either these cost estimates or upon alternative engineering criteria and construction cost estimates if he determines that such estimates submitted by the developer are either unreliable or inaccurate. The city 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 without the approval of the city council.

(g)

Appeal of Determination of City.

Determinations made by the city pursuant to the provisions of this section may be appealed to the city council by filing a written appeal (setting forth in detail the factual basis therefore) with the city clerk, together with a fee established by resolution of the city council, within ten (10) calendar days of the determination of the city. The appeal shall be considered by the city council at a public hearing to be held, noticed and conducted within sixty (60) days after the filing of the appeal. The decision of the city council on the appeal shall be final.

(Ord. No. 406, § 1.)

Sec. 7B-12. - Review.

(a)

Except for the first year this chapter is in effect, no later than one hundred and eighty (180) days following the end of each fiscal year, the finance director shall prepare a report for the city council identifying the balance of fees in the various funds established pursuant to section 7B-5, the facilities constructed, and the facilities to be constructed.

(b)

At a noticed public hearing, the city council shall review the report and the development impact fees to determine whether the fee amounts continue to be reasonably related to the impact of development and whether the described public facilities are still needed. The council may revise the development impact fees to include additional projects not previously foreseen as being needed.

(c)

The report prepared by the finance director and its review by the city council, as well as any findings thereon, shall be subject to the provisions of California Government Code Section 66001(d), to the extent applicable (which shall be controlling in the event of any conflict).

(Ord. No. 406, § 1.)

Sec. 7B-13. - Controlling state law.

The provisions of this chapter and any resolution adopted pursuant hereto, shall at all times be subject and subordinate to the provisions of Chapter 5 (commencing with Section 66000), Division 1, of Title 7 of the California Government Code, as the same presently exist or may hereafter be amended from time to time, to the extent the same are applicable. In the event of any conflict between the provisions of this chapter and said state law, the latter shall control.

(Ord. No. 406, § 1.)

Sec. 7B-14. - Superceding provisions.

The provisions of this chapter and any resolution adopted pursuant hereto, shall supercede any previous ordinance or resolution to the extent the same is in conflict herewith.

(Ord. No. 406, § 1.)

Sec. 7B-15. - Severability.

If any section, phrase, sentence, or portion of this chapter is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision; and such holding shall not affect the validity of the remaining portions hereof.

(Ord. No. 406, § 1.)

Sec. 7B-16. - Appeals.

(a)

Any person required to pay a fee as a result of this chapter may appeal the amount of the fee on the grounds that the development project in question either creates no impact or a lesser impact on one or more of the public facilities supported by the development impact fees established by this chapter. Any such appeal shall be made in writing within ten calendar days of the date that such person is advised of the amount of the fee in writing by the city. Such appeal shall be filed with the city clerk and shall state: (i) the specific fee or fees as listed in Section 7B-3 from which an appeal is taken; (ii) the amount of the fee that the appellant believes would mitigate the impact of the development project; and (iii) the basis for the

appeal, including any evidence supporting a finding of a lesser impact or lack of an impact. Such appeals shall be determined by the city manager within thirty days after filing. The city manager shall provide written notice to the appellant of his or her determination.

(b)

Any person aggrieved by the decision of the city manager following an appeal pursuant to subsection (a) of this section may, within ten calendar days of the decision of the city manager, appeal that decision in writing to the city council. Such appeal shall be filed with the city clerk and shall state: (i) the specific fee or fees as listed in Section 7B-3 from which an appeal is taken; (ii) the amount of the fee that the appellant believes would mitigate the impact of the development project; and (iii) the basis for the appeal, including any evidence in support of it. The decision of the city council shall be final.

(c)

No fee shall be charged for filing an appeal pursuant to this section. In any appeal taken under this section, the amount of the fees established pursuant to this chapter shall be presumed correct, and the appellant shall bear the burden of proof with respect to the inapplicability of any such fee either in whole or in part.

(Ord. No. 422, § 3.)