East Palo Alto Municipal Code Art. V System Development Fee

This chapter may be referred to as the water system development fee ordinance of the city.

(Ord. 253 § 5.1, 2001)

The purpose of this chapter is to establish a water system fee structure in accordance with Government Code § 66000 et seq. that imposes upon future development within the water system service area, and areas outside the present water system service area which can be reasonably served, an equitable share of the costs of future water system improvements.

(Ord. 253 § 5.2, 2001)

The city council finds as follows:

A. Future Development.

1. Future development of property within the water system service area will result in demands for water service that exceed the capacity of the existing water system.

2. Future development of property outside the water system service area, but which can be reasonably served by the water system will result in demands for water service that exceed the capacity of the existing water system.

B. Failure to expand the capacity of the existing water system will cause unacceptable deficiencies in water pressures and water storage to meet peak demands and fire flow requirements.

C. Existing and future sources of revenue are inadequate to fund a substantial portion of the water system improvements required to accommodate the increase demand for water service.

D. The impacts of contemplated future development shall be studied and presented to the city council in a report entitled "City of East Palo Alto Water Facility Fee Evaluation" which will analyze the need for water system improvements and set forth the relationship between new development, water system improvements to accommodate new development, and the estimated cost of those improvements.

E. The water system fee structure provided for by this chapter is established in accordance with the requirements of Government Code § 66000 et seq. and provides for a fair and equitable method of distributing the costs of water system improvements necessary to accommodate water system needs generated by future development within the service area of the water system.

(Ord. 253 § 5.3, 2001)

The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

"Development project" means the construction of residential, commercial, industrial, or other buildings and structures and the addition of floor space to existing nonresidential buildings and structures. Development project also means any change of use of property which requires a building permit and which requires additional water service above which can be reasonably associated with the current use of the project or any other project involving the issuance of a permit for construction or reconstruction.

"Improvements" means the systematic program for upgrading the water system to be phased over the succeeding fifteen (15) years from the effective date of this chapter. The nature and extent of these improvements and their associated cost estimates are to be contained in the report entitled "City of East Palo Alto Water Facility Fee Evaluation".

"Maximum buildout" means the anticipated maximum amount of future development permitted by the general plan and zoning ordinance in the city or county or other city having jurisdiction over a portion of the water system service area and is expressed in terms of the number of undeveloped units permitted within each land use zoning category.

"Water system improvements" means those improvements necessary to implement the water system improvement plan and includes, but is not limited to, the construction of new reservoirs, new transmission and distribution lines, installation of new booster pumps and telemetry control devices.

"Water system service area" means the service area of the city water department.

"Water system" means the water system of the city water department. The water system consists generally of piping, pump facilities, reservoirs, wells and treatment facilities.

"Ultimate water system service area" means the properties outside the existing water system service area that can reasonably be served by the water system.

(Ord. 253 § 5.4, 2001)

A. A water system development fee is established and imposed upon all projects within the service area of the water system. The city council shall set forth in a separate resolution called the "Water System Development Fee Resolution" the specific amount of the fee, list of the specific public improvements, cost of the improvements, and a description of the reasonable relationship between the fee and the various types of new development.

B. A water system annexation fee is established and imposed upon all development projects outside the existing service area of the water system that duly requests water service from the city and which can be reasonably served by the water system. The city council shall set forth in a separate resolution called the "Water System Annexation Fee Resolution" the specific amount of the fee, list of the specific public improvements, and a description of the reasonable relationship between the fee and the various types of new development.

(Ord. 253 § 5.5, 2001)

The city engineer is responsible for calculating the fees required by this chapter in accordance with the terms of this chapter and the water system.

(Ord. 253 § 5.6, 2001)

A. Any developer or property owner subject to the fees described in this chapter may apply to the city council for a reduction or adjustment to that fee, based upon the absence of any reasonable relationship or nexus between the impacts to the water system of that development and either the amount of the fee charged or type of facilities to be financed.

B. The application shall be made in writing and filed with the city clerk not later than thirty (30) days prior to the public hearing on the development permit application for the project or, if no development permit is required, at the time of the filing of the request for a building permit or occupancy permit. The application shall state in detail the factual basis for the claim of waiver, reduction or adjustment.

C. The city council shall consider the application at the public hearing on the permit application or at a separate hearing when a public hearing is not otherwise required to be held within sixty (60) days after the filing of the fee adjustment application. The decision of the city council is final.

D. If a reduction, adjustment or waiver is granted, any change in use on such property or any increase in the square footage of the development project shall invalidate the waiver, adjustment or reduction of the fees.

(Ord. 253 § 5.7, 2001)

The fee paid pursuant to this chapter is placed into a separate capital facilities fund to be used solely for the purpose of construction of water system improvements necessary to complete implementation of the water system improvement plan. This fund is kept in a manner to avoid commingling of the fees of other revenues and other funds of the city.

(Ord. 253 § 5.8, 2001)

Prior to July 1 of each year, during the budget review process, the city council shall review fund balances and required water system improvements and make determination as to whether the amount and type of fees under this chapter should be adjusted. The city council shall also make findings and take whatever other actions are required by law.

(Ord. 253 § 5.9, 2001)

Pursuant to this chapter, the water system improvement plan shall be annually updated by resolution of the city council adopted at a noticed public hearing.

(Ord. 253 § 5.10, 2001)

A developer is entitled to a reduction in the amount of the fees required by this chapter by the amount of engineering and construction costs that have been or will be reasonably incurred for water system improvements required to be constructed or installed by the developer as a condition of development approval. All fee reductions for in lieu contributions are subject to the prior approval of the city engineer and are limited to actual engineering and construction costs for improvements consistent with the city's water system standards. Costs for improvements that exceed the city's water system standards or are in addition to the requirements imposed by the city are excluded from the amount by which the fees are reduced.

(Ord. 253 § 5.11, 2001)

The fees required by this chapter are supplementary to the fees and conditions imposed upon development projects pursuant to the Subchapter Map Act (Government Code § 66410 et seq.) or the Environmental Quality Act (Public Resources Code § 21000 et seq.) and other state and local laws, ordinances or administrative regulations which may authorize the imposition of conditions or fees on development.

(Ord. 253 § 5.12, 2001)

The city engineer is responsible for administering this chapter. Decisions made by the city engineer may be appealed to the city council within ten days of the city engineer's decision.

(Ord. 253 § 5.13, 2001)