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Earlier editions: 2026-09

Title 3 — REVENUE AND FINANCE

Morgan Hill Municipal Code Ch. 3.56 Development Impact Mitigation Fees

Morgan Hill Municipal Code · 2026-10 edition · updated 2026-10-04 · Morgan Hill

Cite as: Morgan Hill Municipal Code Chapter 3.56 · Text as of 2026-10-04

3.56.010 - Findings and purpose.

The city council of the city of Morgan Hill finds and declares that all recitals set forth in the preamble of the ordinance codified in this chapter are true and such recitals are incorporated in this chapter and set forth as findings of the city council; and the council does further find and declare as follows:

A. The state of California, through the enactment of Government Code Sections 66001 through 66009 has determined the nexus that must be established in the enactment of development impact fees.

B. The imposition of development impact fees is one of the preferred methods of ensuring that development bear a proportionate share of the cost of public facilities and service improvements necessary to accommodate such development. This must be done in order to promote and protect the public health, safety and welfare.

C. This chapter recognizes that new development within the city will result in additional growth and that such growth will place additional burdens on various city facilities, infrastructure and services. This chapter further recognizes the types of land development that will generate impacts necessitating the acquisition of land and construction of public facilities and expansion of services and infrastructure in order to meet and accommodate them.

D. All land uses within the city should bear a proportionate financial burden in the construction and improvement of public facilities and services necessary to serve them.

E. The cost of providing public facilities and service improvements occasioned by development projects within the city exceeds the revenue generated by fees exacted from the development projects.

F. The city adopts the reports referenced in the preamble of the ordinance codified in this chapter as prepared by consultants MSI, ARI, DKS, DMG Maximus, and Hilton Farnkopf and Hobson, and as respectively titled and dated, which establish various costs for providing various public facilities and service improvements occasioned by development projects within the city.

G. The development impact fees established by this chapter are based upon the costs which are generated through the need for new facilities and other capital acquisition costs required, incrementally, by new development within the city.

H. The fees established by this chapter do not exceed the reasonable cost of providing public facilities occasioned by development projects within the city.

I. The fees established by this chapter relate rationally to the reasonable cost of providing public facilities occasioned by the development projects within the city, which public facilities are consistent with the general plan and the housing element of the general plan of the city.

J. The public facilities and anticipated future development referenced in this chapter are based upon an analysis of existing and projected land use and zoning.

K. The fees established by this chapter are consistent with the goals and objectives of the city's general plan and are designed to mitigate the impacts caused by new development throughout the city. Development impact fees are necessary in order to finance the required public facilities and service improvements and to pay for new development's fair share of their construction costs.

L. Imposition of fees to finance public facilities and service improvements required by new development is necessary in order to avoid adversely impacting existing facilities and services.

M. The city has pending before it subdivision maps and other applications for residential, commercial and industrial development approval which the city must act upon. Further, the city has heretofore approved various development projects in the form of tentative maps or other approvals, which have been expressly conditioned on payment of the fees established as a result of the development impact fee study undertaken by consultants MSI, ARI, DKS, DMG Maximus, and Hilton Farnkopf and Hobson, and the condition was assented to by the developers of these projects. It is necessary for the provisions of this chapter to apply to these developments in order to protect the public health, safety and welfare by the provision of adequate public facilities, to afford developers certainty with regard to their financial obligations, and to ensure that such development will not create a burden on the interrelated public facilities and services networks of the city.

(Ord. 1570 N.S. § 1—3, 2002; Ord. 1122 N.S. (part), 1993)

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3.56.020 - Definitions.

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

A. "Development project" means any project undertaken for the purpose of development. Development project shall include a project involving the issuance of a permit for construction or reconstruction, remodeling, or any work requiring any permit under the ordinances of the city, as the same presently exist or may be amended from time to time hereafter.

The term development project shall also include permits for erection of manufactured housing or structures, and structures moved into the city.

B. "Fee" means a monetary exaction, other than a tax or special assessment, which is charged by the city to an applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, but does not include fees specified in Section 66477 of the California Government Code, fees for processing applications for governmental regulatory actions or approvals, or fees collected under development agreements adopted pursuant to Article 2.5 (commencing with Section 65864 of Chapter 4, Division 1, Title 7 of the California Government Code).

C. "Public facilities" means and includes public improvements, public services and community amenities.

(Ord. 1122 N.S. (part), 1993)

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3.56.030 - Development fees.

A. The following development impact fees are established and imposed on the issuance of all building permits for development within the city to finance the cost of the following categories of public facilities and improvements required by new development:

  1. General Facilities and Equipment. A development impact fee is established for general facilities and equipment.

  2. Wastewater Treatment Facilities. A development impact fee is established for wastewater treatment facilities, trunk line and collection system.

  3. Public Safety Facilities, Equipment and Training. A development impact fee is established for law enforcement facilities, equipment and training.

  4. Storm Drainage Facilities. A development impact fee is established for storm drainage facilities.

  5. Park and Recreation Facilities. A development impact fee is established for park and recreation facilities.

  6. Streets, Thoroughfares and Traffic. A development impact fee is established for streets and thoroughfares.

  7. Water System Facilities. A development impact fee is established for the water system including land acquisition for wells and tanks.

  8. Open Space Facilities. A development impact fee is established for open space facilities.

  9. Library Facilities. A development impact fee is established for library facilities.

  10. Community and Recreation Centers. A development impact fee is established for community and recreation centers.

  11. Administrative Overhead. A development impact fee is established for administrative overhead to cover the cost of general administration of this chapter and any resolution adopted pursuant hereto, performance of accounting tasks associated herewith, supervision and handling of funds, preparation and/or updating of master facilities plans and/or capital financing plans, and the like. This fee shall be set as a percentage of the fees set forth in subsections (A)(1) through (A)(10) above, which are collected pursuant to this chapter. This fee does not relate to and is not designed to cover administrative costs incurred by the city in the case of any specific public facilities constructed with the fees referenced in subsections (A)(1) through (A)(10), since such project specific administrative costs are included in and shall be recovered from such fees.

B. The city council shall, by resolution, set forth the specific amount of the fees, describe the benefit and impact area on which the fees are imposed, list the specific public improvements to be financed and describe the estimated cost of these facilities.

(Ord. 1624 § 1, 2003: Ord. 1122 N.S. (part), 1993)

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3.56.040 - Imposition of development impact fee.

A. Any person who, after the effective date of the ordinance codified in this chapter, seeks to develop land within the city by applying for a building permit, is required to pay the appropriate development impact fees established pursuant to Section 3.56.030 as the same may be applicable, in the manner, amount and for the purposes therein referenced.

B. No permits or extension of permits for the activities referenced in subsection A shall be granted unless and until the appropriate development impact fees required have been paid to the city.

C. Notwithstanding anything to the contrary set forth in subsection A, above, or in any other provision of this chapter, the development impact fees as established pursuant to Section 3.56.030 shall apply to any development project which has heretofore received a tentative map approval or other approval from the city, where the approval of the same, assented to by the developer, has been conditioned upon payment of the fees established as a result of the analyses and studies pertaining to development impact fees undertaken by the city and/or its consultants/contractors as referenced in Section 3.56.010.

(Ord. 1122 N.S. (part), 1993)

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3.56.050 - Automatic annual adjustment.

Each fee, other than the police impact fee, imposed by this chapter shall be adjusted automatically on January 15th of each fiscal year, beginning on January 15, 2004, by a percentage equal to the Engineering Cost Index as published by Engineer News Record for the twelve month period ending the previous March. This automatic adjustment shall not apply to fees which are based on variable factors which result in automatic adjustments or those which specifically indicate otherwise.

(Ord. 1624 § 2, 2003: Ord. 1581 N.S. § 1, 2002: Ord. 1570 N.S. § 4, 2002: Ord. 1122 N.S. (part), 1993)

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3.56.060 - Increase by resolution.

The amount of each fee established pursuant to this chapter may be more specifically set and revised periodically by resolution of the city council, with this chapter being considered as enabling and directive in this regard.

(Ord. 1122 N.S. (part), 1993)

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3.56.065 - Exemption from fee increases.

For commercial and industrial projects, the fee amounts pursuant to this chapter or any resolution adopted pursuant thereto shall be locked-in on the date the building permit application for such project is deemed complete by the city, provided that the building permit is issued within six months of this date. The developer of such project shall not be subject to any fee increases pursuant to this chapter or any resolution adopted pursuant thereto during this lock-in period.

(Ord. 1761 N.S. § 1, 2006)

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3.56.070 - Creation of special funds.

Each fee collected pursuant to this chapter shall be deposited in a special fund created to hold the revenue generated by each such fee. Monies within each such fund may be expended only by appropriation by the city council for specific projects which are of the same category as that for which the money was collected. In this regard, the following special funds are created and established for the purposes indicated:

A. A general facilities and equipment fund is established. The general facilities and equipment fund is a fund for payment of the actual or estimated costs of constructing and improving the general municipal facilities, including any required acquisition of land.

B. A wastewater treatment facilities fund is established. The wastewater treatment facilities fund is a fund for payment of the actual or estimated costs of constructing and improving the sewage treatment facilities, and related trunkline and collection system, including any required acquisition of land.

C. A public safety facilities, equipment and training fund is established. The public safety facilities, equipment and training fund is a fund for payment of the actual or estimated costs of public safety, such as police and fire, facilities, equipment and training, including any required acquisition of land.

D. A storm drainage facilities fund is established. The storm drainage facilities fund is a fund for payment of the actual or estimated costs of constructing and improving the storm drain facilities, including any required acquisition of land.

E. A park and recreation facilities fund is established. The park and recreation facilities fund is a fund for payment of the actual or estimated costs of constructing and improving the park and recreation facilities, including any required acquisition of land, as well as grading, irrigation and turfing costs associated therewith.

F. A streets and thoroughfares fund is established. The streets and thoroughfares fund is a fund for payment of the actual or estimated costs of the design, upgrading or improvement of the traffic network, including traffic signalization and any required acquisition of land.

G. A water system facilities fund is established. The water system facilities fund is a fund for payment of the actual or estimated costs of replacement, quality improvement, and capital expansion of the water system, including land acquisition for wells and tanks.

H. An open space facilities fund is established. The open space facilities fund is a fund for payment of the actual or estimated costs of the design, improvement and acquisition of facilities r land used for the purposes of improving open space considerations.

I. A library facilities fund is established. The library facilities fund is a fund for payment of the actual or estimated costs of the design, upgrade or improvement of library facilities available for use by the general public.

J. A recreation and community centers facilities fund is established. The recreation and community centers facilities fund is a fund for payment of the actual or estimated costs of constructing and improving the community and recreation center facilities, including any required acquisition of land.

K. An administrative overhead fund is established. The administrative overhead fund is a fund for payment of the actual or estimated costs of administering the provisions of this chapter any resolutions adopted pursuant thereto, all consistent with the provisions of Section 3.56.070.

(Ord. 1624 § 3, 2003: Ord. 1122 N.S. (part), 1993)

(Ord. No. 1945 N.S., § 1, 7-1-2009)

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3.56.080 - Zoning to be utilized to compute fee.

The approved zoning for the property to be developed shall be used in the computation of the fees required to be paid with respect to any property. If a parcel contains more than one zone, then the applicable fees shall be prorated by acreage or units, as appropriate, attributable to each zone. Public properties shall be classified into the category of use as between residential, commercial or industrial as determined by the community development director of the city ("community development director") or duly authorized designee, and shall pay fees pursuant to that classification. All fees due under this chapter shall be determined and calculated by the city engineer of the city ("city engineer") or duly authorized designee.

(Ord. 1122 N.S. (part), 1993)

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3.56.090 - Payment of fee.

A. The fees established pursuant to this chapter shall be paid for the property on which a development project is proposed at the time of the issuance of any required building permit, except as otherwise provided, in this chapter; provided, however, that fees imposed on residential development shall be collected in accordance with the provisions of California Government Code Section 66007, as the same presently exists or may hereafter be amended from time to time.

B. The term "building permit" as used in this chapter means and includes any permits required for construction, reconstruction, remodeling, moving structures into the city, and the like, such as electrical and plumbing permits, moving permits, and the like.

C. The fees created pursuant to this chapter shall be calculated on the basis of net acreage or number of units, as set forth in the resolution referenced in Section 3.56.030. For development projects containing a fraction of a net acre, the fee shall be calculated on the fraction of the acre involved in the development project. All fees collected shall be promptly transferred for deposit in the appropriate fund referenced in Section 3.56.070.

D. Notwithstanding the above, the fee for streets and thoroughfares in the case of commercial and industrial developments shall be calculated on the basis of gross square footage (i.e., all of the floor area confined by the outside surface of the exterior walls of a building, except for that floor area devoted solely to vehicle parking or circulation) times the rate per square foot; and the fee for wastewater treatment facilities in the case of commercial and industrial developments shall be calculated on the basis of gallons per day times the rate per gallon; and the fee for storm drainage facilities in the case of all developments shall be calculated on the basis of the number of square feet of impervious area times the rate per square foot of impervious area, all as established in the resolution adopted pursuant to Section 3.56.030.

(Ord. 1122 N.S. (part), 1993)

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3.56.095 - Deferral of payment of traffic and sewer fees.

Payment of sewer and traffic impact fees shall be as stated in Section 3.56.090, except when a deferral is requested and certain conditions, as set forth by resolution of the city council, are met.

(Ord. 1761 N.S. § 2, 2006)

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3.56.100 - Fee adjustments.

A. A developer of any 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 fees, based upon the absence of any reasonable relationship or nexus between the impacts of that development and either the amount of the fee(s) charged or the type of facilities to be financed. The application shall be made in writing and filed with the city clerk not later than (1) ten days prior to the public hearing on the development permit application for the project, or (2) if no development permit is required, at the time of the filing of the request for a building permit. The application shall state in detail the factual basis for the claim of waiver, reduction or adjustment. The city council shall consider the application at the public hearing on the permit application or at a separate public hearing held within sixty days after the filing of the fee adjustment application, whichever is later. The decision of the city council shall be final. If a reduction, adjustment or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment or reduction of the fee if such change in use would render the same inappropriate. The hearing shall be noticed and conducted in the same fashion and manner as prescribed by the laws of the city for hearing on development permits.

B. The city council may, from time to time, and as the need may arise, set forth, by council resolution, specific limitations which will apply to reductions, adjustments or waivers of development impact fees which may be made pursuant to this section. In this regard, this chapter shall be considered enabling and directory.

(Ord. 1122 N.S. (part), 1993)

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3.56.110 - Use of funds.

A. Funds collected from the development impact fees shall be used for the purpose of paying (1) the actual or estimated costs of constructing and/or improving the public facilities to which the specific fee or fees relate, including any required acquisition of land or rights-of-way therefor; (2) reimbursing the city for the development's share of those public facilities already constructed by the city or to reimburse the city for costs advanced, including without limitation, administrative costs incurred with respect to a specific public facility project; or (3) to reimburse other developers who have constructed public facilities described in the resolution adopted pursuant to Section 3 of Resolution 4657, where those facilities were beyond that needed to mitigate the impact of the developer's project or projects.

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

C. At least once each fiscal period, the city manager of the city ("city manager"), or duly authorized designee shall present to the city council a proposed five-year capital improvement program for the various public facilities referenced in the resolution adopted pursuant to Section 3.56.030 assigning moneys (including any accrued interest) from the funds referenced in Section 3.56.070 to specific improvement projects and related expenses. Moneys, including any accrued interest, not assigned in any fiscal period shall be retained in the same fund until the next fiscal period except as provided by the refund provisions of Section 3.56.120.

D. Funds may be used to provide refunds as described in Section 3.56.120.

E. The city shall be entitled to retain funds collected representing administrative overhead as compensation for the expense of collecting the fees and administering this chapter (all consistent with provisions of Section 3 of Resolution 4657).

(Ord. 1122 N.S. (part), 1993)

(Ord. No. 1945 N.S., § 2, 7-1-2009)

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3.56.120 - Refund of fees paid.

A. If a building permit expires without commencement of construction, then the fee payer shall be entitled to a refund, without interest, of the impact fee paid as a condition for its issuance, except that the city shall retain one percent of the fee to offset a portion of the costs of collection and refund. The fee payer must submit an application for such a refund to the city engineer within thirty calendar 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. All determinations with respect to said refund applications shall be made by the city engineer.

B. In the event any fee collected pursuant to this chapter remains unexpended or uncommitted in any fund established pursuant to Section 3.56.070 five or more years after deposit of the fee, the city shall make findings once each fiscal year to identify the purpose to which the fee is to be put and to demonstrate a reasonable relationship between the fee and the purpose for which it was charged.

C. The unexpended or uncommitted portion of the fee, and any interest accrued thereon, for which need cannot be demonstrated pursuant to subsection B, shall be refunded to the then current record owner or owners of lots or units of the development project or projects on a prorated basis.

D. The provisions of California Government Code Section 66001(d), (e) and (f) shall apply fully to any refund of fees remaining unexpended or uncommitted in any such city fund for five or more years after deposit, and the provisions of subsections B and C, above, shall be subordinate to the Government Code section and shall be applied consistent therewith.

(Ord. 1122 N.S. (part), 1993)

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3.56.130 - Exemptions.

A. The following shall be exempted from payment of the development impact fees referenced in Section 3.56.030:

  1. Alterations, renovations or expansion of an existing building or structure where no additional dwelling units are created and the use is not changed; provided, however, that the expansion of an existing commercial or industrial building or structure shall not be exempt from the fee for streets and thoroughfares or the fee for wastewater treatment facilities. Provided further, that the expansion of an existing building or structure shall not be automatically exempt from the fee for storm drainage facilities;

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

  3. The conversion of existing residential units or buildings located on property with a central commercial residential district zoning designation or any such similar succeeding zoning designation under a downtown specific plan, to retail/commercial uses shall be exempted from application of the provisions of this chapter. This exemption shall expire five years from the effective date of the ordinance codified in this chapter.

  4. The conversion, installation of tenant improvements, intensification of use, or expansion of any existing building or structure for the development of retail/commercial space on property located within the central commercial residential district or any such similar succeeding zoning designation under a downtown specific plan, which does not increase the total floor area of such building by more than one thousand and five hundred square feet within any ten-year period shall be exempted from application of the provisions of this chapter. This exemption shall expire five years from the effective date of the ordinance codified in this chapter.

B. All determinations regarding the exemptions provided above shall be made by the city engineer.

C. In order to ensure that the imposition of fees pursuant to this chapter will not be contrary to the public interest, or prevent the development of a public service project, the city council may waive all, or any portion of, the fees required by this chapter if the council finds that a commercial or residential development project will serve a public purpose or satisfy a public need and is located within a redevelopment project area, or other special district, or involves direct city participation in the development.

(Ord. 1635 N.S. § 1, 2003; Ord. 1122 N.S. (part), 1993)

(Ord. No. 1928 N.S., § 1, 4-22-2009)

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3.56.140 - Credits.

A. New development that, through demolition or conversion, will eliminate existing development is entitled to a fee credit if the existing development is a lawful use under the city's zoning ordinance, including a nonconforming use.

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 free credit if the development that was partially or totally destroyed was a lawful use under the city's zoning ordinance, including a nonconforming use, at the time thereof.

C. Credit for such eliminated development or development that was partially or totally destroyed as above specified shall be calculated by the city engineer in accordance with the fee schedule set forth in the resolution to be adopted pursuant to Section 3.56.030 and shall be applied to new development on the same site.

D. Notwithstanding any other provision of this chapter, new development shall be given a credit against the fee due hereunder for park and recreation facilities to the extent of the amount of any fees paid and/or the value of any land dedicated by such new development, as well as the value of any credit due any such new development, for park and recreation facilities pursuant to the provisions of the city's subdivision ordinance, Chapter 17 of the Morgan Hill Municipal Code or any other ordinance of the city, as the same now exist or may hereafter be amended from time to time.

(Ord. 1122 N.S. (part), 1993)

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3.56.150 - Developer construction of facilities.

A. In-Lieu Fee Credits for Construction of Improvements.

  1. A developer required by the city to construct any facilities or improvements (or a portion thereof) described in the resolution adopted pursuant to Section 3.56.030 as a condition of approval of a development permit may request an in-lieu credit of the specific development impact fee(s) included for the same development. Upon request, an in-lieu credit of fees shall be granted for facilities or improvements that mitigate all or a portion of the need therefor that is attributable to and reasonably related to the given development.

  2. Only costs proportional to the amount of the improvement or facility that mitigates the need therefor attributable to and reasonably related to the given development shall be eligible for in-lieu credit, and then only against the specific relevant fee(s) involved to which the facility or improvement relates.

  3. Fees required under this chapter shall be reduced by the actual construction costs of the facilities or improvements that relate to such fees, as demonstrated by the applicant and reviewed and approved by the city engineer, all consistent with the provisions of subsections (A)(1) and (A)(2) above. Subject to the applicable provisions of subsection B of this section, if the cost of the facilities or improvements is greater than required relevant fees, this chapter does not create an obligation on the city to pay the applicant the excess amount.

  4. An amount of in-lieu credit that is greater than the specific fee(s) required under this chapter may be reserved and credited toward the fee of any subsequent phases of the same development, if determined appropriate by the city engineer. The city engineer may set a time limit for reservation of the credit.

  5. Credits shall be calculated by the city engineer in accordance with the fee schedule set forth in resolution to be adopted pursuant to Section 3.56.030.

B. Development Construction of Facilities Exceeding Needs Related to Development Project. Whenever an applicant is required, as a condition of approval for a development permit, to construct any facility or improvement (or a portion thereof) described in the resolution adopted pursuant to Section 3.56.030 which facility or improvement is determined by the city to exceed the need therefor attributable to and reasonably related to the given development project, a reimbursement agreement with the applicant and a credit against the specific relevant fee which would otherwise be charged pursuant to this chapter on the development project, shall be offered. The credit shall be applied with respect to that portion of the improvement or facility which is attributable to and reasonably related to the need therefor caused by the development, and shall be determined, administered and processed in accordance with and subject to the provision of this section. The amount to be reimbursed shall be that portion of the cost of the improvement or facility which exceeds the need therefor attributable to and reasonably related to the given development. The reimbursement agreement shall contain terms and conditions mutually agreeable to the developer and the city, and shall be approved by the city council.

C. Site-Related Improvements. 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 project in order to serve it and do not constitute facilities or improvements specified in the resolution referenced in Section 3.56.030.

D. Determination of Credit. The developer seeking credit and/or reimbursement for construction of improvements or facilities or dedication of land or rights-of-way, shall submit such documentation, including, without limitation, engineering drawings, specifications, and construction cost estimates, and utilize such methods as may be appropriate and acceptable to the city engineer to support the request for credit or reimbursement. The city engineer shall determine credit for construction of improvements or facilities based upon either these cost estimates or upon alternative engineering criteria and construction cost estimates if the city engineer determines that such estimates submitted by the developer are either unreliable or inaccurate. The city engineer shall determine whether facilities or improvements are eligible for credit or reimbursement.

E. Time for Making Claim for Credit. Any claim for credit must be made no later than the application for a building permit. Any claim not so made shall be deemed waived.

F. Transferability of Credit—Council Approval. Credits shall not be transferable from one project or development to another without the approval of the city council.

G. Appeal of Determinations of City Engineer. Determinations made by the city engineer pursuant to the provisions of this chapter may be appealed to the city council by filing a written appeal (setting forth in detail the factual basis therefor) with the city clerk, together with a fee established by resolution of the city council, within a fee established by resolution of the city council, within ten calendar days of the determination of the city engineer. The appeal shall be considered by the city council at a public hearing to be held, noticed and conducted in accordance with the provisions prescribed in Section 3.56.100 for public hearings with respect to fee adjustments. The decision of the city council on the appeal shall be final.

(Ord. 1122 N.S. (part), 1993)

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3.56.160 - Review.

A. No later than six months following the end of each fiscal year, the city manager shall prepare a report for the city council identifying the balance of fees in the various funds established pursuant to Section 3.56.070, the facilities constructed, and the facilities to be constructed. In preparing the report, the city manager shall adjust the estimated costs of the public improvements in accordance with the Engineering Construction Cost Index as published by Engineer News Record for the elapsed time period from the previous July 1st or the date that the cost estimate was developed. The annual report shall also include a review of the administrative overhead charge.

B. At a noticed public hearing, the city council shall review the report and the development impact fees to determine whether the fee amounts continue to be reasonably related to the impact of development and whether the described public facilities are still needed. The council may revise the development impact fees to include additional projects not previously foreseen as being needed.

C. The report prepared by the city manager and its review by the city council, as well as any findings hereon, shall be subject to the provisions of California Government Code Section 66001(d), to the extent applicable (which shall be controlling in the event of any conflict).

(Ord. 1570 N.S. § 5, 2002; Ord. 1122 N.S. (part), 1993)

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3.56.170 - Controlling state law.

The provisions of this chapter and any resolution adopted pursuant hereto, shall at all times be subject and subordinate to the provisions of Chapter 5 (commencing with Section 66000), Division 2, of Title 7 of the California Government Code, as the same presently exist or may hereafter be amended from time to time, to the extent the same are applicable. In the event of any conflict between the provision of this chapter and state law, the latter shall control.

(Ord. 1122 N.S. (part), 1993)

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3.56.180 - Superseding provisions.

The provisions of this chapter and any resolution adopted pursuant hereto, shall supersede any previous ordinance or resolution to the extent the same is in conflict herewith.

(Ord. 1122 N.S. (part), 1993)

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