Kingsburg Municipal Code Ch. 15.48 Capital Facilities Fees/Development Impact Fees

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Editor's note— Ord. No. 2016-002, §§ 1—17, adopted March 16, 2016, amended chapter 15.48 in its entirety to read as herein set out. Former chapter 15.48, §§ 15.48.010—15.48.140, pertained to capital facilities fee. See Code Comparative Table and Disposition List for complete derivation.

The ordinance codified in this chapter shall be known and may be cited as "The City of Kingsburg Capital Facilities Fees/Development Impact Fees Ordinance." This chapter is adopted under and pursuant to the provisions of, but no limited to, Chapter 5 (commencing with Section 6600 et seq. of Division 1 of Title 7 of the California Government Code."

(Ord. No. 2016-002, § 1, 3-16-2016)

1. The city council of the city has received, reviewed, considered and found to be true and correct the findings and conclusions of the "Development Impact Fee Justification Study" addressed to the city, prepared by David Taussig & Associates dated January 27, 2016 ("2016 study"). The 2016 study sets forth certain capital and public facilities needs of the city as identified in the 2016 study and Section 15.48.030, A—E, inclusive, which will be generated by new development. The city council of the city has received, reviewed, considered and found to be true and correct the findings and conclusions of the City of Kingsburg Fee Study Report addressed to the city prepared by Peters Engineering Group dated November, 2005 ("2005 study"). The 2005 study identifies certain storm drainage facilities needs of the city generated by new development. This ordinance hereby incorporates the 2016 study, the provisions dealing with storm drainage facilities in the 2005 study for all purposes by this reference as if the same was set forth fully in this chapter, including, but not limited to, assistance in interpreting, applying, construing and/or deciding any questions regarding this chapter. The 2016 study and the 2005 study addressing storm drainage facilities are collectively referred to in this chapter as the "study". The city's General Plan envisions future residential and non-residential development in many areas within the city. New residential and non-residential development will generate additional residents and employees who will require additional public facilities provided by the city. The adoption of this ordinance is statutorily exempt from the California Environmental Quality Act (CEQA) and the CEQA Guidelines under Section 15273(a), including Section 15273(a)(4).

(Ord. No. 2016-002, § 2, 3-16-2016)

The purposes of the capital facilities fees/development impact fees (sometimes in this chapter collectively referred to as "fees") adopted herein are to provide for the capital facilities identified below as follows:

A. Provision of traffic facilities necessary to provide safe and efficient vehicular access throughout the city including new road construction and equipment as identified in the study.

B. Provision of public safety facilities required within the city to maintain adequate public safety services, including building expansion and equipment and vehicle replacement for police and fire as identified in the study.

C. Provision of general government facilities including library facilities and other facilities used by the city to provide general governmental services as identified in the study.

D. Provision of parks and recreation facilities including: (i) acquisition of parkland and recreational areas needed for park and recreational facilities; and (ii) construction of park and recreational facilities, including sports fields, ball fields, soccer fields, trails, restrooms and park beautification as identified in the study.

E. Provision of water facilities used by the city to provide basic water supply and distribution services as identified in the study.

F. Provision of storm drain facilities to provide basic storm drainage and distribution services as identified in the 2005 study.

(Ord. No. 2016-002, § 3, 3-16-2016)

1. A reasonable relationship exists between the need for city public facilities and the type of development projects on which the capital facilities fees/development impact fees are imposed as indicated by the study. Capital facilities/development impact fees collected from each new development will generate revenue, which is necessary to offset development's impacts to the city's public facilities.

2. A reasonable relationship exists between the use of capital facilities fees/development impact fees and the type of development project on which the fee is imposed as indicated by the study. Capital facilities fees/development impact fees collected will be used for the acquisition, installation, and construction of the public facilities identified on the needs list contained in study.

3. A reasonable relationship exists between the amount of the capital facilities fee/development impact fee and the cost of the public facilities attributable to the development on which the fee is imposed as indicated by the study. The method of allocation of the respective fees to a particular development project bears a fair relationship, and is roughly proportional to, the development project's burden on, and benefits from, public facilities to be funded by the capital facilities fees/development impact fees.

4. The capital facilities fees/development impact fees collected will be placed in an individual interest bearing account established for the purpose of tracking the fee revenue and expenses separately as identified in Section 15.48.050.

(Ord. No. 2016-002, § 4, 3-16-2016)

Each component of the capital facilities fees/development impact fees received by the city shall be deposited into separate trust funds in a manner to avoid any co-mingling of the fees with other revenues and funds of the city, except for temporary investments, and expended solely for the purposes for which the fees were collected. Any interest income earned by monies in any such trust fund shall also be deposited into such trust fund and shall be expended only for the purpose for which the fee was originally collected.

(Ord. No. 2016-002, § 5, 3-16-2016)

After review and public hearing, the city council of the city hereby adopts the 2016 study and readopts the 2005 study regarding storm drainage facilities.

(Ord. No. 2016-002, § 6, 3-16-2016)

Capital facilities fees/development impact fees identified in this chapter shall be effective June 1, 2016. The capital facilities fees/development impact fees are due and payable at the time of issuance of building permits.

1. Capital facilities fees/development impact fees shall be charged on applicable new structures or expanded square footage of existing structures.

2. Capital facilities fees/development impact fees shall be calculated at the time of issuance of the building permit for a structure that is triggering their collection and shall be collected prior to the final inspection of said structure.

3. Capital facilities fees/development impact fees shall be calculated based on the structure's use, with a best fit into one of the applicable land use type fee categories identified in the study and in instances where a unique use is presented, the city's community development director/consultant will determine which land use category is most appropriate.

4. Capital facilities fees/development impact fees collected on a one-family residential structures described in this Code shall be based on the applicable amount described in this chapter.

5. Capital facilities fees/development impact fees collected on each multi-family residential structures described in this Code shall be based on the applicable amount described in this chapter.

6. Capital facilities fees/development impact fees collected on structures determined to fall within the commercial zone district described in this Code shall be based on the applicable amount per square foot described in this chapter multiplied by the new enclosed square footage of the structure.

7. Capital facilities fees/development impact fees collected on structures determined to fall within the professional office zone district described in this Code shall be based on the applicable amount per square foot described in this chapter multiplied by the new enclosed square footage of the structure.

8. Capital facilities fees/development impact fees collected on structures determined to fall within the industrial zone district described in this chapter shall be based on the applicable amount per square foot described in this chapter multiplied by the new enclosed square footage of structure.

9. Capital facilities fees/development impact fees shall not be collected on structures accessory to, as determined by the community development director/consultant, a legally established one-family residential structure or multi-family residential structure.

10. Development impact fees shall not be collected on accessory buildings, to a legally established use and as determined by the community development director/consultant that are not intended for occupancy or storage such as structures housing utilities.

(Ord. No. 2016-002, § 7, 3-16-2016)

Notwithstanding any other provision of this chapter, the fees shall also be applied and collected to the maximum extent allowed by this chapter and applicable law to any prior approvals, entitlements, and discretionary and ministerial permits issued by the city (or by an officer, agent, employee or official thereof) prior to the effective date of the ordinance codified in this chapter or in accordance with the previous agreements or conditions of approvals, entitlements or permits of any kind obligating parties and/or developments, and/or their successors, to pay such fees when adopted, even though such adoption has occurred subsequent to the issuance of such approval, entitlement or permit.

(Ord. No. 2016-002, § 8, 3-16-2016)

An applicant for a multi-family residential housing project consisting of four (4) or more units ("multi-family project") may request that the payment of the applicable capital facilities fees/development impact fees be deferred: (i) for a period of three (3) years from the date of issuance of the certificate of occupancy for the multi-family project if the multi-family project is a market rental rate project; or (ii) for a period of five (5) years from the date of issuance of the certificate of occupancy for the multi-family project if the multi-family project is a very low income, low income or moderate income multi-family project as those terms are defined in the California Health and Safety Code or other applicable laws, rules, ordinances or regulations.

Any request for deferral of the payment of the capital facilities fees/development impact fees shall be made pursuant to an application provided by the city and submitted at the time of application for site plan review or any other land use entitlement that is required in order to construct the multi-family project. If the information set forth on the application satisfies the requirements of this section for the deferral of the payment of the capital facilities fees/development impact fees, the applicant and the owner of the real property upon which the multi-family project will be constructed shall execute an agreement in a form prepared by the city wherein the applicant and the owner of the real property upon which the multi-family project will be constructed agree to pay the applicable capital facilities fees/development impact fees on a date certain as identified in the agreement ("deferral agreement"). The deferral agreement will be processed and recorded against title to the real property upon which the multi-family project will be constructed in accordance with California Government Code Section 66007(c) as amended from time to time.

If the applicant and/or the owner of the real property upon which the multi-family project is to be constructed are business entities as opposed to individuals, the owners of each business entity must execute a guaranty agreement in a form prepared by the city ("guaranty agreement") wherein each individual will guaranty the applicant's and real property owner's performance under the deferral agreement, including without limitation, the payment of the capital facilities fees/development impact fees should the capital facilities fees/development impact fees not be paid by the applicant and/or the owner of the real property upon which the multi-family project is to be constructed on the payment date set forth in the deferral agreement.

At the time of execution of the deferral agreement and guaranty, the applicant shall pay the city an administrative fee in the amount of one thousand dollars ($1,000.00). The purpose of the administrative fee is to reimburse to city the costs of document preparation and costs of administration of the deferral.

(Ord. No. 2016-002, § 9, 3-16-2016)

Nothing in this chapter otherwise affects, modifies, removes or repeals any other fees, assessments, costs or other conditions or entitlements, heretofore or hereafter otherwise required or imposed by any other duly adopted action of the city.

(Ord. No. 2016-002, § 10, 3-16-2016)

Any structure for which the capital facilities fees/development impact fees are paid in accordance with this chapter and the study, which is subsequently required to be repaired, restored or rebuilt as a result of partial or complete damage or destruction by fire, earthquake, other natural disaster, or act of God, and which is not thereby increased in gross area above the gross area existing on the effective date hereof, shall not be required to pay the capital facilities fees/development impact fees upon being rebuilt.

(Ord. No. 2016-002, § 11, 3-16-2016)

Any structure in existence on the effective date hereof for which the capital facilities fees/development impact fees are not paid or payable in accordance with this chapter and the study, which is subsequently required to be repaired, restored or rebuilt as a result of partial or complete damage or destruction by fire, earthquake, or act of God, and which is not thereby increased in gross area above the gross area existing on the effective date hereof, shall also not be required to of capital facilities fees/development impact fees upon being rebuilt.

(Ord. No. 2016-002, § 12, 3-16-2016)

Regardless of cause, any expansion, enlargement or increase of any kind of any structure shall be charged and responsible for payment capital facilities fees/development impact fees in accordance with this chapter and the study.

(Ord. No. 2016-002, § 13, 3-16-2016)

A. Any party may protest the imposition of capital facilities fees/development impart fees covered by this chapter by meeting both of the following requirements:

1. Tendering the capital facilities fees/development impact fee payment, as determined by the community development director/consultant in full.

2. Serving written notice on the community development director/consultant.

a. A statement that the required payment is tendered under protest.

b. A statement informing the city of the factual elements of dispute and the legal theory or theories forming the basis for the protest.

B. A protest filed in accordance with this section shall be filed within ten (10) days after the date the building permit was issued that resulted in the imposition of the fee. The hearing before the city council shall be set by the city clerk within thirty (30) days after submission of the notice of protest and the hearing at the city council meeting closest to the expiration of said thirty-day period. At the hearing, oral and written evidence may be presented. The city council shall issue a written decision on the appeal or protest no later than thirty (30) days after the hearing before the city council. The written decision of the city council shall be a final administrative decision.

(Ord. No. 2016-002, § 14, 3-16-2016)

A. Administrative fee. The community development director/consultant shall be responsible for administration of the capital facilities fees/development impact fee, including the calculation and collection of the fees, tracking of deposits, and preparation of required reports. As such, the office of the community development department will retain the 3.00% administrative cost portion of the Fee described in the study for these purposes.

B. Annual adjustment. An annual adjustment to account for cost escalations shall be applied to all capital facilities fees/development impact fees in this chapter in the manner and time specified herein:

1. Prior to the end of each fiscal year, the community development director/consultant shall report to the city council his or her findings on the annual escalation for the prior twelve (12) months through May and the capital facilities fees/development impact fees shall be adjusted accordingly.

2. The basis for this annual adjustment shall be the percentage increase in the San Francisco Urban Consumer Price Index. The base month for application of this adjustment shall be February 2016 and the adjustment shall be applied to the capital facilities fees/development impact fees in effect on July 1 st of each fiscal year.

3. The city council shall cause to be posted in the community development department the annual adjustment in fees as specified in this section.

C. Credits and reimbursements. Upon completion to the satisfaction of the city engineer, dedication by the owner of the public facilities or improvements, and acceptance by the city of the public facilities or improvements for which the capital facilities fees/development impact fee, as may be applicable, is intended to pay the cost of construction and completion, such owner shall receive credit against such fee charged or to be charged against such owner for such public facilities or improvements. Such credit shall be administered as follows:

1. The credit shall be calculated by the percentage such owner completes of the total public facilities or improvements for which such fee is intended to pay for the construction and completion multiplied by the lesser of the projected cost of the facilities or improvements identified in the study with any applicable adjustments pursuant to this Section 15.48.140 B. or the actual construction costs submitted by the owner and verified by the city engineer.

2. Notwithstanding anything to the contrary herein, a credit may be applied only against the fee related to such credit.

3. When the owner has exhausted all credit, as determined by the city engineer, the owner may elect to receive cash reimbursement from the city for the remaining credit. Such cash reimbursement shall only be made from the city trust fund containing that component of the capital facilities fee/development impact fee that is related to such remaining credit to the extent such funds are available in such trust fund. Any such elected cash reimbursement remaining unpaid one hundred eighty (180) days after a written request has been made by the owner shall earn interest at the city's current pooled interest rate.

D. Annual findings. The community development director/consultant shall prepare once each fiscal year for the city council, a report of any portion of the capital facilities fees/development impact fees remaining unexpended or uncommitted five (5) or more years after deposit of the Fee and which identifies the purpose to which the fee is to be used and to demonstrate a reasonable relationship between the fee and the purpose for which it was charged.

E. Refund of unexpended revenues. Except as provided by this Section 15.48.150 F., the city shall refund to the then current record owner or owners of each unit of development on a prorated basis the unexpended or uncommitted portion of the capital facilities fees/development impact fees, and any interest accrued thereon, for which need cannot be demonstrated under this Section 15.48.150 D. Such refund of unexpended or uncommitted revenues may be made by direct payment, by providing a temporary suspension of fees, or by any other means consistent with the intent of Government Code Section 66001.

F. Reallocation of remaining revenues. If the administrative costs of refunding unexpended or uncommitted revenues under this Section 15.48.150 E. exceed the amount to be refunded, the city, after a public hearing, notice of which has been published under Government Code Section 6061 and posted in three (3) prominent places within the area of the city, may determine that the revenues shall be allocated for some other purpose for which fees are collected subject to Chapter (commencing with Section 66000) of Division 1 of Title 7 of the Government Code.

(Ord. No. 2016-002, § 15, 3-16-2016)

A. Misdemeanor. Violation of this chapter shall be a misdemeanor. The city attorney may institute criminal proceedings hereunder. Any violator, upon conviction, shall be fined not more than one thousand dollars ($1,000.00), imprisoned for a period not exceeding six (6) months, or both fined and imprisoned.

B. Civil proceedings. The city attorney may institute civil proceedings to enforce this chapter, including without limitation, actions for injunction and civil penalties. Construction without the authorization required by this chapter may be suspended by a court of competent jurisdiction. Violation of this chapter interferes with provision of public services, and shall constitute a public nuisance.

C. Civil penalties. Any violator of this chapter shall be liable, in addition to payment of the amount of any fees due, for civil penalties not to exceed: One thousand dollars ($1,000.00) for each day during which construction proceeds in violation of this chapter plus fifteen (15) percent of the amount of any fees not paid when due.

D. Lien. In the event of failure of the owner of a development project to pay in full a fee or fees payable under this chapter, city may place and record a lien upon the property on which the development is constructed in the amount of the unpaid fee. The city council shall adopt rules concerning imposition of such liens, including notice of the imposition of such lien and an opportunity for hearing.

E. Costs of securing compliance. Any person or entity not in compliance with this chapter shall be liable, in addition to other amounts provided herein, for attorneys' fees, and all other reasonable costs of securing compliance, including the cost of collection.

F. Interest. Interest shall accrue on all fees not paid when due pursuant to this chapter at the rate prescribed by law for interest on judgments, from the date when payment was due until the date payment is received in full.

(Ord. No. 2016-002, § 16, 3-16-2016)

If any section, subsection, sentence, clause, or phrase of this chapter is for any reason held to be unconstitutional and invalid, such decision shall not affect the validity of the remaining portion of this chapter. The city council hereby declares that it would have passed this chapter and every section, subsection, sentence, clause or phrase thereof, irrespective of the fact any one (1) or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.

(Ord. No. 2016-002, § 17, 3-16-2016)