East Palo Alto Municipal Code Ch. 13.28 Development Impact Fees

This chapter and the adoption of development impact fees are enacted pursuant to California Government Code Section 66000 et seq. ("Mitigation Fee Act").

(Ord. No. 422, § 2, 4-2-2019)

The purpose of the development impact fees is to ensure that future development contributes a reasonable fair share contribution to fund the construction of necessary facility and infrastructure improvements to serve future development, and to ensure that existing residents and developments will not bear a disproportional share of the cost for these improvements. The fees collected shall be used to funds projects identified in the city's capital improvement program and related public infrastructure plans.

(Ord. No. 422, § 2, 4-2-2019)

The following words, terms, and phrases, when used in the chapter, shall have the following meaning:

"Development project" means the development of residential, office, industrial, retail, mixed use or other projects that result in either: 1) new residential units; 2) new or expanded non-residential building space; or 3) change of use or conversion of an existing building to a more intensive use.

"Facility or infrastructure improvement" means the projects identified in the city's capital improvement program and public infrastructure master plans.

"Gross square footage" shall be defined as the sum of all areas that may relate to an applicable adopted impact fee. For park and trails, public facilities, and transportation impact fees, the gross square footage devoted to residential, office, retail, R&D or other commercial and industrial uses shall include lobbies and interior common areas but shall not include space devoted to parking.

"Impervious surfaces" means structures and site improvements that increase the volume and rate of site runoff, such building roofs, roadways, driveways, walkways, parking lots and other pavement (typically but not exclusively concrete or asphalt paving).

"Parks and trails" means public park and trail improvements, recreational amenities, and new parkland.

"Public facilities" means a variety of city facilities, including but not limited to, community building, senior center, police department building, corporation yard, city hall, and improvements to existing city facilities.

"Ravenswood Business District (RBD)" means the area of the city contained within the Ravenswood/4 Corners TOD Specific Plan (2013). "Non-RBD" refers to all other areas in the city outside of the RBD.

"Storm drainage" means facilities and infrastructure to prevent flooding during rain events and storm drain pipes and associated improvements to capture, convey and treat runoff.

"Transportation infrastructure" means the public roads, multi-modal streetscape facilities, and traffic control system in the city.

(Ord. No. 422, § 2, 4-2-2019; Ord. No. 01-2019, § 1, 10-1-2019)

A. This chapter authorizes the following development impact fees:

1. Parks and trails impact fee;

2. Public facilities impact fee;

3. Storm drainage impact fee;

4. Transportation infrastructure impact fee.

B. Establishment of these impact fees does not replace or supersede other development fees, charges or requirements that are authorized in the Municipal Code, including but not limited to: Chapter 13.12, Section 13.12.220 - Establishment of fees (for stormwater management program and enforcement); Ordinance 288 (for street and drainage improvements and public right-of-way dedication); Chapter 13.24, Article V - System Development Fee (for water supply and infrastructure); and Ordinance 141 - Quimby Act Park Fees (pertaining to single-family/town house subdivisions and multi-family condominium projects).

(Ord. No. 422, § 2, 4-2-2019)

A. The development impact fees in the chapter shall apply to all development projects that do not have a valid and active building permit issued at the effective date of this ordinance. Development projects that are subject to impact fees include the following:

1. New single-family homes, townhouses, for-sale and rental multi-family dwelling units, and detached accessory dwelling units;

2. New and expanded buildings for office space, retail and restaurant uses, mixed use projects, industrial uses, and other land uses, including but not limited to, private schools, hotels, and public assembly buildings; and

3. Change of use: existing buildings that are adapted or converted to another more intensive use (e.g., from industrial to office or residential) based on the net change in residential or employee population or net increase in vehicle trips.

B. The development impact fees in this chapter shall not apply to government buildings and structures owned by a public agency.

(Ord. No. 422, § 2, 4-2-2019)

The monetary amounts or methodology for calculating the development impact fees authorized in the chapter shall be adopted by resolution with appropriate public noticing and findings pursuant to the Mitigation Fee Act.

(Ord. No. 422, § 2, 4-2-2019)

The resolution for adoption of development impact fees may authorize an adjustment or reduction in the maximum supportable impact fees for development projects, and shall describe the specific conditions or circumstances for allowing a fee adjustment or reduction.

(Ord. No. 422, § 2, 4-2-2019)

The city manager or designee shall be authorized to grant a fee credit to a development project where the developer agrees or offers to construct a portion of a capital improvement project that is partially funded with development impact fees. The potential credit shall only apply to the related impact fee (i.e., a street improvement can only provide credit to the transportation infrastructure impact fee). Property frontage improvements are not eligible for a credit, unless the improvements exceed standard city requirements as determined by the city manager or designee. A credit shall also be available for environmental mitigation measures or other city requirements where a fair share contribution is provided by a developer for a capital improvement project that is included or partially funded with development impact fees. Fee credits shall be based on the estimated cost of improvements. The developer may be required to fund the cost of a licensed engineer to estimate the value of the improvement.

(Ord. No. 422, § 2, 4-2-2019)

Development impact fees are one-time fees that shall be paid in full at the time of building permit issuance. Where construction of a project is phased, fees can be paid for each residential unit or building when the applicable building permit is issued. The amount of fees due shall be calculated from the fee schedule in effect at time of building permit issuance. City manager or designee can approve in per written agreement an alternative payment schedule based on unique circumstances pertaining to a development project or if required by state law.

(Ord. No. 422, § 2, 4-2-2019)

A. The development impact fees authorized in this chapter and adopted by resolution shall be automatically updated by the city manager or designee at the beginning of each fiscal year on July 1, without further city council action necessary, by a percentage equal to the change in the Construction Cost Index as most recently published by the Engineering News Record (20-Cities Average).

B. The city council shall review the development impact fees at least every five years to consider possible adjustments to the fees. Adjustments may be warranted for reasons that include, but are not limited:

1. Updates to construction cost estimates or the scope of projects covered by the fees based on the most recently adopted capital improvement program for the city or other public infrastructure master plans;

2. Updates and amendments in the city's general plan or Ravenswood/4 Corners TOD Specific Plan;

3. Changes in city-wide transportation needs or the projected traffic generated from different land uses; and

4. Changes in use characteristics, such as the occupancy level of residential and non-residential uses.

(Ord. No. 422, § 2, 4-2-2019)

The collected funds for each impact fee, plus accrued interest, shall be placed into separate accounts apart from other city funds. The city manager or designee shall provide an annual accounting and report on each fund pursuant to Section 66006 of the Mitigation Fee Act.

(Ord. No. 422, § 2, 4-2-2019)

The city manager or designee shall be authorized to develop written administrative rules and guidelines for administering, calculating, granting credits and adjustments, collecting and reporting on the development impacts fees consistent with this chapter and the adopted fee resolution.

(Ord. No. 422, § 2, 4-2-2019)