Cupertino Municipal Code Ch. 18.56 Street Facility Reimbursement Charges

This chapter is enacted in order to establish a procedure for reimbursing developers of property located within the City a portion of the costs of installing street facilities which adjoin other properties within the City, reduce the cost of any additional development occurring on the adjoining properties by eliminating the need for the installation of the street facilities at the time such development occurs, and thereby directly benefit the adjoining properties.

(Ord. 2085, § 2 (part), 2011; Ord. 1653, § 2 (part), 1994)

A. The street facility costs which shall be subject to reimbursement in the manner provided by this chapter include all direct costs usually incurred by an initial developer who is required to install street facilities that also benefit a benefitted property, subsequent to the effective date of the ordinance codified in this chapter, incident to or as a condition of the approval of a subdivision map, parcel map or conditional certificate of compliance.

B. These reimbursable costs include, but are not limited to, costs incurred in designing street facilities, the cost of plan check fees and other fees incurred in securing City and other governmental approvals of the plans and specifications for the street facilities, the cost of the land upon which the street facilities are installed, and the cost of all labor, materials, equipment and contractors employed in installing the street facilities, except for:

1. The cost of installing temporary street facilities;

2. The cost of maintenance work performed on existing street facilities; and

3. Any portion of the cost of installing street facilities in excess of the usual cost of installing local street facilities as determined by the City Engineer in the manner provided in this chapter.

(Ord. 2085, § 2 (part), 2011; Ord. 1653, § 2 (part), 1994)

A. As a condition of approval of a subdivision map, parcel map or conditional certificate of compliance, the initial developer shall enter into a reimbursement agreement with the City in order to receive reimbursement for the portion of street facility costs, including interest where applicable, in excess of the installation costs incurred for the initial developer's property or for the cost of the land upon which the street facilities were installed, including interest where applicable. Any reimbursement to the initial developer shall be paid out of the revenues received by the City from the street facility reimbursement charges assessed in the manner provided by this chapter.

B. The reimbursement agreement shall be signed by the Mayor, approved as to form by the City Attorney and shall set forth the following information:

1. The name, capacity and address of the initial developer;

2. A description of the street facility costs subject to reimbursement;

3. An itemized statement, prepared by, and attested to by a licensed engineer, of the reimbursable costs to be incurred by the initial developer in installing the street facilities;

4. A legal description and assessor's parcel number for each benefitted property, excepting the initial developer's property;

5. An engineered plat depicting the street facilities and each benefitted property;

6. The total street facility costs subject to reimbursement for each particular benefitted property;

7. The City's obligation to reimburse the initial developer an amount from the street facility charge assessed upon benefitted properties and received by the City, if any, at the time and in the manner provided by this chapter;

8. Methods of acquisition of land necessary for the installation of the street facilities, imposition of costs, recovery of interest; and

9. Such additional information and documents as may reasonably be required by the City Engineer.

(Ord. 2085, § 2 (part), 2011; Ord. 1653, § 2 (part), 1994)

A. Where street facilities have been installed by the City or the initial developer without cost to the benefitted property owner, the benefitted property owner, as a condition precedent to obtaining a final map, a final parcel map or a conditional certificate of compliance, shall pay the City for the cost of the land at the cost to the City or to the initial developer, and shall pay a street facility reimbursement charge for the facilities which the City or the initial developer installed on the streets abutting or on the benefitted property in an amount equal to such benefitted property owner's share of the total cost of the street facilities as set forth in the reimbursement agreement. Payment for both land and facilities shall include simple interest in the amount of seven percent per year, to be calculated in the following manner:

1. Land Cost. Interest to accrue from the date the street facilities are accepted by the City to the date the street facility reimbursement charge is paid, or if the land is purchased by the City for a City project, from the date of purchase to the date the charge is paid.

2. Street Facility Cost. Interest to accrue from the date the street facilities are accepted by the City to the date the street facility reimbursement charge is paid, or if installed by the City, from the date installation commenced to the date the charge is paid.

B. Provided, however, that the interest shall be waived if the benefitted property owner dedicates or has dedicated to the City land necessary for the street facilities, or where no such dedication is necessary.

C. Notwithstanding any other provision of this Code, if, upon request by the City in connection with the City’s commencement of a street improvement project, a property owner dedicates to the City land necessary for such street improvement project, a property owner dedicates to the City land necessary for such street improvement project at no cost to City, the City’s Director of Public Works, on behalf of the City, may provide a limited waiver of future reimbursement charges for the cost of the street improvements. The waiver shall be signed by the City Manager or his or her designee and shall be in a form as approved by the City Attorney.

(Ord. 16-2141, § 2, 2016; Ord. 2085, § 2 (part), 2011; Ord. 1653, § 2 (part), 1994)

The revenues received by the City from street facility charges assessed pursuant to this chapter shall be used solely for reimbursements to initial developers in the manner provided by this chapter and the reimbursement agreement. Provided, however, that in the event the City is unable to locate the initial developer after five years of due diligent searching commencing from the date the street facility reimbursement charges are paid, or upon the discovery of facts establishing that a due diligent search would be futile, the revenues collected hereunder shall be paid to the treasurer of the City for deposit in the general fund.

(Ord. 2085, § 2 (part), 2011; Ord. 1653, § 2 (part), 1994)

A. Where the initial developer at its own cost acquires land for the installation of the mandated street facilities, reimbursement to the initial developer by the City for that portion of the cost of those street facilities in excess of the street facilities required for the initial developer's property shall include interest in an amount equal to the interest received by the City from the owners of benefitted properties as imposed by Section 18.56.050.

B. If the initial developer cannot purchase or otherwise acquire land necessary for the installation of the street facilities, the City shall, no later than one hundred twenty days from the filing by the initial developer of a final subdivision map or final parcel map, or in the case of a certificate of compliance, any time prior to issuance of a certificate of occupancy, acquire by negotiation or commence proceedings pursuant to California Code of Civil Procedure Section 1230.010 et seq. (including proceedings for immediate possession under Code of Civil Procedure Section 1255.410) the necessary land.

C. Where the City acquires land necessary for the installation of the street facilities in the manner provided in subsection B of this section, the reimbursement agreement shall provide that the initial developer shall reimburse the City for all costs, including litigation costs, incurred by the City in the acquisition of such land. The reimbursement agreement shall also provide that prior to commencement of any proceedings to acquire the necessary land pursuant to the City's eminent domain powers, the initial developer shall deposit with the City an amount to be determined by the Director of Public Works, which amount shall be based on a reasonable estimate of the costs of acquisition of said land. If the deposit exceeds the actual cost of acquisition, the City shall refund the excess amount to the initial developer. If the deposit is less than the actual cost of acquisition, upon written demand by the City, the initial developer shall pay the additional sum to the City.

D. Where no dedication of land is necessary for the street facilities, or where the City is able to acquire land necessary for the street facilities at no cost pursuant to negotiations with the owner or owners of benefitted properties for which a street facility reimbursement charge is assessed under Section 18.56.050, and as part of those negotiations the City waives the requirement to pay interest on the street facility reimbursement charge, the initial developer shall not be entitled to interest on the reimbursement charges assessed those benefitted properties.

(Ord. 2085, § 2 (part), 2011; Ord. 1653, § 2 (part), 1994)

The street facility reimbursement charges assessed pursuant to this chapter shall be in addition to any street facility improvement charges assessed pursuant to Chapter 14.04, Street Improvements, of this code, as well as any street facility or other public improvement charges assessed pursuant to any other ordinance or resolution adopted by the City Council.

(Ord. 2085, § 2 (part), 2011; Ord. 1653, § 2 (part), 1994)

The City Engineer shall have the power to establish reasonable rules and regulations consistent with the provisions of this chapter for the purpose of its administration and enforcement. Such rules and regulations shall be effective upon approval thereof by the City Council.

(Ord. 2085, § 2 (part), 2011; Ord. 1653, § 2 (part), 1994)

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