Chapter 8 — DEVELOPMENT IMPACT FEES

This chapter is enacted under the police power of the city and under Government Code § 66000 et seq. (Ord. 754 C.S., passed 6-18-03)

The intent and purpose of this chapter is to cause new development in the city to pay its fair share of the costs of public improvements and facilities, which needs are generated by such development. (Ord. 754 C.S., passed 6-18-03)

This chapter applies to development impact fees charged as a condition of development to defray the cost of public facilities, improvements and amenities. The cost of developing and administering the city's development impact fee program may be included as a component of the established fees. This chapter is not intended to and does not apply to regulatory and processing fees; fees required under a development agreement; special development impact fees adopted in conjunction with specific plans; funds collected under a reimbursement agreement; or assessment district proceedings, assessments or taxes.

(Ord. 754 C.S., passed 6-18-03)

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CAPITAL FACILITIES FEE OR CFF. The fee established pursuant to this chapter.

CAPITAL FACILITY OR CAPITAL IMPROVEMENT. Public facilities as defined in subsection (d) of § 66000 of the Government Code, including, but not limited to, improvements for transportation and transit facilities, parks and recreation facilities, public safety facilities, sewer, water, storm drainage and such other facilities as may be identified in the Master Facility Plans or in the Technical Report.

CITY. The city including its future boundaries.

COMMERCIAL DEVELOPMENT OR COMMERCIAL. Retail, office, and hotel buildings.

DEVELOPER. The person(s) or legal entity(ies), who also may be the property owner, who is developing a particular project in the city.

DIRECTOR OR COMMUNITY DEVELOPMENT DIRECTOR. The Director of the Department of Community Development of the city or his or her designee.

INDUSTRIAL DEVELOPMENT. Warehouse, industrial, manufacturing and research and development (R&D) buildings.

MULTI-FAMILY DWELLING. Any building or portion thereof which is occupied, or intended for occupancy, as the same residence of two or more families living independently of each other and doing their own cooking in such building, including, but not limited to, duplexes, triplexes, fourplexes, apartments, flats, condominiums and townhouses. MULTI-FAMILY DWELLING also includes secondary dwelling units constructed within the R 6000, single-family residential district.

SINGLE-FAMILY DWELLING. An attached or detached single-family residential dwelling occupied or intended for occupancy by one household.

TECHNICAL REPORT. The report dated April 2003, entitled "Madera Impact Fee Update," prepared by Economic and Planning Systems, and any future Council approved amendments to it.

(Ord. 754 C.S., passed 6-18-03)

(A) General. The amount and the calculation of the capital facilities fee shall be established by City Council resolution and is based upon the following considerations:

(1) Each type of development will pay only for construction of those public facilities where there is a reasonable relationship between the facilities funded and the capital facility needs created by the new development.

(2) Each type of development shall contribute to the funding of the needed facilities in proportion to the need for the facilities created by that type of development.

• (B) Type of development .

• (1) The categories of land uses for which the fee will be charged are:

• (a) Single-family dwelling;

• (b) Multi-family dwelling;

• (c) Commercial development; and

• (d) Industrial development.

• (2) The fee is based on the estimated level of public services needed, generated by and used by each category of use.

• (C) Fee unit.

(1) Residential. A specific CFF amount, established for each residential density type in this chapter, shall be charged for each new dwelling unit.

(2) Commercial and industrial. A specific CFF amount, established for each commercial and industrial development, shall be charged for each square foot of commercial and industrial development, respectively.

(D) Capital facilities improvements. The fee shall be based on the percentage of the cost of the capital facilities improvements attributable to new residential, industrial and commercial development as determined in the Technical Report. The improvements included in the total cost are set forth in that report and do not and shall not include the costs of improvements needed to alleviate existing deficiencies in the city's capital facilities, if any exist.

• (E) Amount of fee formula.

(1) The amount of the fee shall be established by resolution and may be amended from time to time. The fee shall be determined as follows:

(a) Estimate total capital facilities costs attributable to each type of new commercial, industrial and residential development;

(b) Divide the cost attributable to new single-family development by the total number of new single-family dwelling units expected under build out of the city's General Plan. The result is the capital facilities fee to be charged on the development of each new single-family dwelling unit in the city.

(c) Divide the cost attributable to new multi-family development by the total, number of new multi-family dwelling units expected under build out of the city's General Plan. The result is the capital facilities fee to be charged on the development of each new multi-family dwelling unit in the city.

(d) Divide the cost attributable to new commercial development by the total number of new commercial square feet expected under build out of the city's General Plan. The result is the CFF to be charged on the development of each new square foot of commercial development in the city.

(e) Divide the cost attributable to new industrial development by the total number of new industrial square feet expected under build out of the city's General Plan. The result is the CFF to be charged on the development of each new square foot of industrial development in the city.

(2) Fee estimates are included in the Technical Report and shall be updated periodically to reflect changes in construction costs, development schedules, availability of other funds and other factors. (Ord. 754 C.S., passed 6-18-03)

The capital facilities fee, in an amount to be determined by resolution of the City Council, is applicable to the construction of new residential units and to the construction of new commercial and industrial development as set forth in this chapter.

(Ord. 754 C.S., passed 6-18-03)

The following activities and actions are exempt from the requirement to pay the capital facilities fee:

• (A) No fee is due if a capital facilities fee was previously paid in full for a particular property and use;

• (B) No capital facilities fee shall be charged for remodeling or for an addition to an existing residential unit; and

(C) No fee shall be charged for demolition of an existing residential structure and the building of a new residential structure on the same site, provided the demolished structure was in use as a residential dwelling within ten years before the issuance of a building permit for the new residential structure.

There are no other exemptions to the capital facilities fee.

(Ord. 754 C.S., passed 6-18-03; Am. Ord. 870 C.S., passed 5-19-10; Am. Ord. 908 C.S., passed 9-18-13)

The time for payment of the capital facilities fee shall be established by City Council resolution, which sets the amount of the fee, and shall conform to the requirements of Government Code §§ 66000 et seq. (Ord. 754 C.S., passed 6-18-03)

At the time of approval of a project or at the time of the imposition of the fees, the city shall provide to the project applicant a statement of:

(A) The amount of the fee and the public improvement that the fee will be used to finance (Government Code § 66006(f)); and

(B) Notification that the 90-day approval period in which the applicant may protest has begun (Government Code § 66020(d)).

(Ord. 754 C.S., passed 6-18-03)

Fee revenues collected shall be placed in a particular account and may only be used to fund the projects of that account as identified in the Appendix of the Technical Report, as from time to time amended and to fund the city's administrative costs incurred in collecting depositing, distributing and otherwise administering such fee revenues and updating the Technical Report.

(Ord. 754 C.S., passed 6-18-03)

The capital facilities fee revenues and all interest earned on deposited fee revenues shall be used only to: (A) Fund new development's share of the costs of the construction or installation of the capital facilities and improvements identified in the Technical Report as funds are available in the required accounts or to reimburse the city for such construction or installation if funds were advanced by the city from other sources to pay new development's share of such costs; or

• (B) Fund reimbursement, under the terms set forth in § 10-8.12; or

• (C) Fund loans or transfers made in conformance with Government Code § 66006(b)(1)(G).

(Ord. 754 C.S., passed 6-18-03)

(A) As may be authorized by resolution of the City Council, following review and written report from city staff, capital facilities fee revenues may be used to reimburse a developer, upon his or her written request, under this section. A developer must obtain Council approval for reimbursement, by resolution, before any offer of dedication and before any construction begins for a public improvement, which may be the subject of a reimbursement request. Reimbursement shall only be approved by the City Council where all of the following four conditions are satisfied:

(1) Developer has been required or permitted to install and dedicate a public facility identified in the Technical Report which is oversized (including supplemental size, length or capacity) beyond that which can be attributed to the specific development installing the same;

(2) The facility for which reimbursement is sought is identified by the city as a priority project to be funded within the four-year period immediately following the completion of the facility;

(3) Revenues within the particular CFF account funding the facility are available; and

(4) The sum value of the facility(ies) constructed, based on the most current estimate of the infrastructure item (as defined by annual cost review or other recent evaluation of cost), exceeds the total capital facilities fee liability of the specific development installing the facility.

(B) Reimbursements shall not be authorized if the value of the constructed and dedicated improvement is below the total capital facilities fee liability of the project. Reimbursements for oversizing shall not be available as fee credits against a development's fee liability, except as provided in § 10-8.13.

(C) Reimbursements for oversizing shall include appropriate financing charges (interest) which shall be based upon the rate at which the city can borrow money at the time the reimbursement is approved by the City Council. Financing charges included in any reimbursement payments to a developer or property owner shall not exceed this interest rate, as calculated by the city's Finance Director.

(D) In the case of City Council approval of reimbursement, the reimbursement amount will be based on the most current estimate of the infrastructure item, as defined by annual cost review, other recent evaluation of cost, or actual costs as determined by the director.

(Ord. 754 C.S., passed 6-18-03)

(A) The Community Development Director is authorized to credit development fees imposed under this chapter in consideration for certain on-site and off-site facilities and improvements constructed or paid for by the developer. A developer is entitled to credit of the improvements in an amount not to exceed the amount of the applicable capital

facilities fee if the improvement is identified by the city as a priority project to be funded within the four-year period immediately following the completion of the facility and the developer (1) dedicates an appropriate site, (2) constructs the improvements, (3) finances an improvement by cash, assessment district, or Mello-Roos Community Facilities District, or (4) a combination of the above.

(B) A decision regarding a fee credit is appealable under § 10-8.19.

(Ord. 754 C.S., passed 6-18-03)

The capital facilities fee authorized by this chapter and the implementing Council resolution(s), the accumulated fee funds and their appropriation, and supporting documentation, shall be reviewed annually by the City Council in a manner, which conforms with the requirements of §§ 60001(d) and 66006(b) of the Government Code. (Ord. 754 C.S., passed 6-18-03)

The city shall not collect the capital facilities fee established by this chapter once funds sufficient to construct residential, commercial and industrial development's share of all facilities described in the then current Technical Report and its appendices have been collected.

(Ord. 754 C.S., passed 6-18-03)

The city charges developers other fees. If a developer has paid such fees and believes all or a portion of such fee payment is being used to fund improvements included under the capital facilities fee, he or she may request a refund or credit for overpayment by following the appeal procedures provided in § 10-8.19.

(Ord. 754 C.S., passed 6-18-03)

(A) The developer of a project subject to a development fee under this chapter may apply to the Community Development Director for an adjustment to or waiver of that fee or for a finding that the project is exempt from the fee. The waiver or adjustment of a fee shall be based upon the absence of any reasonable relationship between the impact on public facilities of that development and either the amount of fee charged or the type of facilities to be financed.

(B) The application shall be made in writing and filed with the Community Development Director no later than the time of the issuance of a building permit. The application shall state completely and in detail both the applicant's factual basis and legal theory for adjustment or waiver, and compare its proposal with the analysis set forth in the Technical Report prepared for the fee being challenged. The Community Development Director may refuse to consider factual assertions or legal theories not set forth in the written application.

(C) The Community Development Director shall consider the application at an informal hearing, which may be continued from time to time, and which shall be held within 60 days after the filing of the complete application. The decision of the Community Development Director is appealable under § 10-8.19. (Ord. 754 C.S., passed 6-18-03)

The Community Development Director or the City Council under § 10-8.17 may require as a condition of adjustment, waiver or a finding of exemption that the developer provide a recordable document in a form acceptable to the Director acknowledging the factual basis of such adjustment, waiver or exemption and further acknowledging that a subsequent change of facts may result in the requirement that additional fees be paid. (Ord. 754 C.S., passed 6-18-03)

(A) The Community Development Director is responsible for administering, collecting, crediting, adjusting and refunding development fees. A decision by the Community Development Director regarding a fee imposed under this chapter shall be appealable in accordance with this section. A person appealing under this section shall have first sought a fee credit under § 10-8.13, or an adjustment or waiver, or a finding of fee exemption under § 10-8.18. A person seeking judicial review shall first complete an appeal under this section and shall pay all city charges for that appeal.

(B) A person appealing a decision under this chapter shall file an appeal with the City Clerk, who is responsible for processing the appeal toward a hearing. The appeal shall be in writing, stating completely and in detail the factual and legal grounds, and shall be filed within 10 calendar days following the decision being appealed.

(C) The cost of the appeal shall be borne by the applicant, who shall pay a deposit against such cost at the time of filing the appeal. The amount of the deposit shall be established by resolution of the City Council. The cost of an appeal must be paid in full before the appeal hearing takes place.

(D) The City Clerk shall notify the City Administrator of the appeal, and the matter shall be placed before and heard by the City Council.

(E) The City Council shall set the time and place for the hearing, serve notice on the parties, conduct the hearing, prepare written findings of fact and a written decision on the matter, and shall preserve the complete administrative record of the proceeding. The City Council may issue directives, including but not limited to directives that legal briefs be submitted in accordance with an established briefing schedule, to the parties in order to facilitate resolution of the appeal. The City Council shall consider relevant evidence presented by the appellant and by the Community Development Department.

(F) The decision of the City Council is final and may not be further appealed; it is reviewable by a court under Code of Civil Procedure § 1094.5.

(Ord. 754 C.S., passed 6-18-03)

A developer seeking to proceed with his or her project during the pendency of an application for adjustment or waiver or a finding of exemption or during the pendency of an appeal may do so by following the procedures set forth in § 66020 of the Government Code.

(Ord. 754 C.S., passed 6-18-03)

(A) If a building permit or use permit is canceled or voided and the fees paid have not been committed, the Community Development Director may, upon the written request of the applicant and provided that work has not progressed to a point that would permit commencement of a new, changed or expanded use for which a fee would be payable, order return of the fee and interest earned on it less administrative costs.

(B) If a fee is not spent or committed five years or more after it was paid, and the City Council does not make the findings required by Government Code § 66001(d), the Community Development Director may authorize a refund to the then owner of the property for which the fee was paid, under Government Code § 66001(e).

(C) A decision regarding refund of a fee is appealable under § 10-8.19.

(Ord. 754 C.S., passed 6-18-03)