Chapter 17.70 — DEVELOPMENT IMPACT FEES

This chapter establishes the categories of Development Impact Fees (DIFs) to be imposed on Development in order to defray the cost of new or rehabilitated Public Facilities required, incrementally, by new Development within the City, which are needed to accommodate the attendant growth in the City and to maintain an acceptable level of facilities and services for all areas within the City. The imposition of the respective DIFs ensures that new Developments bear a proportionate share of the cost of Public Facilities and service improvements necessary to accommodate such Development, to the extent that such Development creates impacts that require mitigation that may be offset by the respective type of DIF. The imposition of DIFs through this chapter is necessary to protect the public health, safety, and welfare by ensuring the provision of adequate Public Facilities. (Ord. 20-03 § 6)

• A. The standards in this chapter shall apply to all Development and Development Projects as defined in this chapter. This chapter is adopted to implement the provisions of Government Code Section 66000 et seq. (the Mitigation Fee Act), which authorize a City to impose impact fees as a condition of approval on a Development Project for the purpose of defraying all or a portion of the cost of Public Facilities related to such project.

• B. DIFs are hereby established to be imposed on new Development and Development Projects within the City to pay a proportionate share of the reasonably estimated costs of Public Facilities related to bicycle, pedestrian, transportation, fire, police, library, parks and recreation (to the extent not covered by Quimby Fees), public administration, and storm drain facilities, to the extent impacted by a Development Project. The DIFs authorized by this chapter shall be used only for defraying costs associated with developing new or rehabilitating existing bicycle, pedestrian, transportation, fire, police, library, parks and recreation (to the extent not covered by Quimby Fees), public administration, and storm drain facilities, to the extent applicable, resulting from new development projects, and shall not exceed the estimated cost associated with providing those facilities.

• (Ord. 20-03 § 6)

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

• A. Development or Development Project. A “development or development project” means any project undertaken for the purpose of development. Development or development project shall include all projects involving any use or work requiring a Land Use Permit or the issuance of a permit for construction or reconstruction, for erection of manufactured housing or structures, or for structures moved into the City, but shall not include a permit to operate.

• B. Development Area. The floor area of the use plus any other area, including, but not limited to, outdoor areas devoted to patrons of the use.

• C. Peak Hour Trips (PHT). The maximum one-hour quantity of vehicle trips accessing a particular Land Use during the PM peak period (4:00 p.m.—6:00 p.m.).

• (Ord. 20-03 § 6)

Unless otherwise indicated, the following types of DIFs shall be imposed at the time of approval for Development within the City to finance the cost of the related Public Facilities:

• A. Bicycle and Pedestrian Facilities.

• B. Fire Facilities.

• C. Library Facilities.

• D. Parks and Recreation Facilities (not applicable to residential subdivisions for which Quimby Fees are imposed).

• E. Public Administration Facilities.

• F. Storm Drain Facilities.

• G. Transportation Facilities.

• H. Affordable Housing Facilities (applicable only to non-residential projects and components of mixed-use projects not subject to Chapter 17.28 ).

• (Ord. 20-03 § 6; Ord. 21-10 § 4; Ord. 23-05 § 4)

• A. The City Council may, after noticed public hearing and in compliance with the Mitigation Fee Act, adopt a resolution: (i) setting forth the amount of each specific type of Development Impact Fee identified in Section 17.70.040 above; or (ii) revising any such previously adopted fee amounts, with the ordinance codified in this chapter being considered as enabling and directive in this regard. Any resolution adopted under this chapter shall establish how each DIF amount is calculated and shall be in accordance with the provisions of the Mitigation Fee Act. The City Council shall do all of the following:

  1. Identify the purpose of the DIF;

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

  3. Determine how there is a reasonable relationship between the DIF’s use and the type of development project on which the DIF is imposed;

  4. Determine there is a reasonable relationship between the need for the public facility and the type of development project on which the DIF is imposed;

  5. Determine how there is a reasonable relationship between the amount of the DIF and the cost of the public facility or portion of the public facility attributable to the development on which the DIF is imposed; and

  6. Establish a schedule of DIFs.

• B. An adopted DIF resolution, as referenced in subsection A may allow for automatic adjustments of fees on July 1st of each fiscal year, by a percentage equal to the appropriate Construction Cost Index (CCI) as published by Engineering News Record, or its successor publication, for the preceding 12 months for which the CCI is available and such CCI shall be specific to California or the nearest region; provided, however, that the adopted DIF resolution shall identify the specific types of DIFs subject to such automatic adjustments and shall apply only to the types of DIFs for which the Mitigation Fee Act authorizes automatic adjustments.

• C. All revenues derived from and all moneys collected for each type of DIF, as identified in Section 17.70.040 , including accrued interest thereon, shall be deposited in a separate, special fund created to hold the revenue generated for each respective type of DIF. Each such fund is hereby established and shall be administered in accordance with the Mitigation Fee Act, including specifically Government Code Section 66001(c) through (e) and 66006 . Moneys within each such fund may be expended only for the identified purpose or purposes for which the respective DIF was collected.

• (Ord. 20-03 § 6)

• A. Required Fees. Any person who seeks to develop land within the City shall be subject to the imposition of DIFs for the following types of development:

  1. Transportation Facilities Fees. Approval of any development that generates a peak hour trip (PHT) or fraction thereof.

  2. All Other DIFs.

     • a. Residential Development. Permitting of one or more dwelling unit(s).

     • b. Non-Residential Development. Permitting of 500 or more square feet of development area.

• B. Exemptions. The following shall be exempted from payment of the DIFs:

  1. A new use that does not constitute a Change of Use as specified in subsection 17.55.020(B) .

  2. The replacement of a destroyed or partially destroyed or damaged structure with a new structure of the same size.

• (Ord. 20-03 § 6)

The City may establish by resolution categories of “beneficial projects” which are eligible for DIF reductions or waivers. The City will establish administrative procedures for granting these DIF reductions or waivers.

(Ord. 20-03 § 6)

• A. A developer of any Development Project subject to the fees described in this chapter may apply to the City Council for a reduction, adjustment, or waiver of any one or more of the DIFs. The application for such protest must be made in writing and filed with the City Clerk, state in detail the factual basis for the claim of waiver, reduction or adjustment, and meet all requirements of Government Code Section 66020 , as may be amended.

• B. The City Council shall consider the protest application, referenced in subsection A above, at a public hearing. The decision of the City Council shall be final. 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 DIF if such change in use would render the same inappropriate.

• C. The City Council may, from time to time, and as the need may arise, set forth by resolution specific limitations which will apply to reductions, adjustments or waivers of DIFs which may be made pursuant to this section. In this regard, this section shall be considered enabling and directory.

• (Ord. 20-03 § 6)

• A. The DIFs established pursuant to this chapter shall be paid by the developer for the property on which a Development Project is proposed at the time of final inspection or the date on which the certificate of occupancy is issued, whichever occurs first, except as otherwise provided below.

  1. DIFs imposed on residential development, shall be collected in accordance with the provisions of Government Code Section 66007 .

  2. Where a Development Project does not require a building permit, DIFs will be collected at permit issuance.

  3. In no instance may a certificate of occupancy, including a “temporary” certificate of occupancy, be issued for a project prior to the full payment of all required DIFs.

• B. Unless otherwise specified by the City, the amount of DIFs shall be based on those DIFs and amounts in effect at the time payment is made or due.

• (Ord. 20-03 § 6; Ord. 21-10 § 4)

• A. Funds collected from DIFs shall be used for the purpose of paying the actual or estimated costs of designing, constructing and/or improving the public facilities within the City to which the specific DIF or DIFs relate, including any required acquisition of land or rights-of-way therefor. No DIF funds shall be used for costs attributable to existing deficiencies in public facilities, but may be used for the costs for increased demand for additional facilities and services reasonably related to the proposed development project.

• B. In the event that bonds or similar debt instruments are issued for advanced provision of public facilities for which DIFs may be expended, DIFs 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 DIFs involved relate.

• (Ord. 20-03 § 6)

If a permit for a development project for which DIFs have been imposed expires without commencement of development and the required DIFs under such permit have already been paid, then the feepayer shall be entitled to a refund, without interest, of the DIF(s) paid. The feepayer must submit an application for such a refund to the City Manager within 30 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. 20-03 § 6)

• A. New development that, through demolition or conversion, will eliminate existing development is entitled to a DIF credit if the demolished or converted development was a lawful use and was in use within two years of the new development under this Title.

• B. 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 DIF credit if the development that was partially or totally destroyed was a lawful use and such destruction occurred within five years of the new development under this Title.

• C. If an existing development undergoes a change of use, 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 an in-lieu credit within 10 years, and then only against the specific relevant DIF(s) involved to which the facility or improvement relates.

• D. The City may allow for DIFs collected for transportation facilities to be satisfied or partially satisfied if the obligor of the transportation facilities fees donates real property which is needed by the City for local transportation purposes pursuant to Government Code Section 66006.5 .

• E. 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 development project in order to serve it and which do not constitute facilities or improvements associated with a specific category of DIF.

• (Ord. 20-03 § 6; Ord. 25-10, 12/2/2025)