Nevada City Municipal Code Ch. 3.32 Sewer and Fire Protection Systems Development Fees

This chapter is adopted pursuant to the police powers of the city, Article 11, Section 7 of the California Constitution and pursuant to the appropriate provisions of the Planning and Zoning law of the state, Government Code Section 65000.

(Ord. 85-3 § 1(4), 1985)

New and existing development within areas accepted for annexation will create a burden on the sewer system of Nevada City and the Nevada City fire protection system and will soon use up the excess capacities of these systems. It is important to maintain excess sewer treatment plant capacity and to expand the fire protection system in order to meet the continuing needs of the residents of the Nevada City sphere of influence whose property is accepted for annexation. It does not appear that normal tax revenues generated by Nevada City will be sufficient to pay for any future expansion of these systems and that the cost of such expansion will have to be borne by development fees imposed on new and existing development within areas accepted for annexation.

(Ord. 85-3 § 1(1), 1985)

A. A reasonable method to allocate the cost of future expansion of the fire protection system is to determine the present value of such system, and then divide that sum by the original area of Nevada City. This results in the value per acre of the present systems. This sum represents a reasonable estimate of the value to be received by new and existing development which is annexed to the city and represents a reasonable estimate on a per-acre basis of the cost to Nevada City of providing the future fire protection needs occasioned by new and existing development which will be annexed.

B. A reasonable method to allocate the cost of future expansion of the sewer and treatment plant system is to determine the present value of that system and then divide that sum by the capacity of the present system (as recently expanded). This results in the value per gallon of capacity of the present system; however, in setting an annexation fee it is reasonable to subtract from the present value of the sewer and treatment plant system the cost of the recent expansion project, as that cost will be paid by a sewer connection fee to be charged to all development whether it occurs inside the present city limits or within newly annexed territory.

C. Based upon the above formula, the fire protection development fee shall be eight hundred fifty-six dollars per acre of annexed territory.

D. Based upon the above formula, the sewer development fee shall be $2,657 per-gallon, per-day of capacity required by the development (see schedule of fees attached to the ordinance codified in this chapter).

(Ord. 85-3 § 2, 1985)

A. In cases of annexations of inhabited or uninhabited territory, a development fee as calculated in Section 3.32.030 of this chapter, shall be imposed on the owners of the property within the annexed territory. In the case of the sewer development fee, that fee shall be charged to the owner only in the event that the owner elects to hook up to the sewer system.

B. When any annexation has occurred, the city clerk shall forthwith cause each owner of property within the annexed territory to be notified in writing of the amount to be paid by each such owner based upon the annexation. Such notice shall clearly state the date on or prior to which the sum or installment, if such is the case as provided by the notice of election, shall be paid, and in the event such sum or installment payment is not paid on or prior to such prescribed date, the amount due and unpaid shall become a lien against the property and the lien created hereby shall be recorded with the county recorder. The lien shall continue until the sum is fully paid or the property sold therefor. The above development fees shall be paid prior to the issuance of any building permits or prior to the property owner hooking up to the sewer system or prior to the recording of any final subdivision maps for property within the annexed territory.

C. In all annexations, other than annexations as a result of an election or annexations in which all persons owning property within the annexed territory are not agreeable to the annexation, there shall be made, executed and delivered to the city prior to the adoption of the resolution approving the proposed annexation's submission to the local agency formation commission, an agreement to pay the whole of such annexation fees or charges on such terms and conditions and at such times as may be prescribed by the city council. Such agreement shall in all cases provide for any unpaid balance of any such annexation fee or charge to be and become a charge and lien against the real property included in the annexed territory, and such agreement shall further provide for its recordation in the office of the county recorder at the option of the city council at the time of or concurrent with the effective date of the annexation. The agreement shall further provide that no officer, employee or department of the city shall issue building permits, approve any construction plans, record any final subdivision maps or other documents relating to development of the property except for prezoning and tentative subdivision maps, unless and until such fees are paid in full to the city.

D. In the event that a project is to be developed in phases, a portion of the entire fire protection fee shall be payable prior to the issuance of a building permit for each stage or the recording of each unit of a final map. The portion to be paid for each stage shall be a fraction the numerator of which is the amount of the square footage of the floor space (or the number of acres in the case where a unit of a final map is being recorded) to be contained in the phase to be developed and the denominator of which is the total square footage of floor space or acreage for the entire project. The sewer development fee shall be set based on the amount of capacity needed for that phase. In the case of a subdivision, the sewer fee shall be payable prior to the issuance of a building permit or connection to the sewer system, whichever occurs first.

(Ord. 85-3 § 3, 1985)

The fire protection development fee may be reduced as follows:

A. Where a portion of the territory to be annexed is dedicated by the owners to the city or other public entity for park, recreation or school purposes pursuant to Sections 66477 and 66478 of the California Government Code, or a portion of the property is dedicated as or agreed pursuant to a development agreement to be opened or green space, such portion of the territory may be disregarded in the computation of the development fee.

B. Where a portion of the annexed property is devoted to a segment of an area-wide or regional drainage channel and by reason whereof such portion so devoted is rendered wholly unproductive except for such drainage purposes, such portion of area of the property may be disregarded in the computation of total development fee.

C. Where a portion of the annexed property consists of existing county, state or federal street; road or highway right-of-way or proposed future construction thereof, based on established mapped rights-of-way for such purposes, and where such portion or portions of such streets or rights-of-way are of general benefit to the community, such portion or portions of such territory, to the extent of such general benefit, may be disregarded in computing such development fee.

(Ord. 85-3 § 4, 1985)

Each fee collected under this chapter shall be used only to provide capital costs for extending, replacing or improving components of that system and shall not be used for operation or maintenance.

(Ord. 85-3 § 5, 1985)