Article I — PROCEDURES

This chapter shall be known and cited as "Impact Fees."

(Ord. No. 88-45, § 1, 12-14-88)

The purpose of the fees established by this chapter is to impose upon new development the costs of constructing public facilities that are reasonably related to the impacts of the new development. Such public facilities and improvements are identified as part of the city's long-range planning and program administration, including its capital improvement plans.

This chapter applies to all impact fees imposed by the city as a condition of development approval for the purpose of financing capital improvements, the need for which is attributable to such development, unless expressly herein exempted, including but not limited to:

(a)

Sewer connection charges imposed pursuant to section 29.11.1 of the City Code;

(b)

Water connection charge imposed pursuant to section 37.56.1 of the City Code;

(c)

Public facilities fees imposed pursuant to Ordinance No. 91-09;

(d)

Park fees imposed pursuant to Ordinance No. 25-OR0671-1;

(e)

Drainage fees imposed pursuant to Ordinance No. 85-23, as amended;

(f)

Thoroughfare and bridge fees imposed pursuant to Ordinance No. 83-01, as amended; and

(g)

Signalization fees imposed pursuant to Ordinance No. 87-19, as amended.

(Ord. No. 88-45, § 1, 12-14-88; Ord. No. 91-11, §§ 1, 2, 2-27-91; Ord. No. 25-OR0670-1, § 1, 12-3-2025)

The provisions of this chapter do not apply to:

(a)

Taxes or special assessments levied by the city;

(b)

Fees for processing development applications or approvals;

(c)

Fees for enforcement of or inspections pursuant to regulatory ordinances;

(d)

Fees collected under development agreements adopted pursuant to Government Code Section 65864 et seq.; or

(Ord. No. 88-45, § 1, 12-14-88; Ord. No. 91-11, § 1, 2-27-91; Ord. No. 25-OR0670-1, § 2, 12-3-2025)

(a)

Benefit area means the geographic area within which impact fees are collected and expended for a particular type of capital improvement serving developments projects within such area.

(b)

Calculate means the determination of the amount of impact fees to be collected based on the need for capital improvements related to a particular development project.

(c)

Capital improvements means land and/or facilities for the storage, treatment or distribution of water; for the collection, treatment, reclamation or disposal of sewage; for the collection and disposal of storm waters or for flood control purposes; for the generation of electricity or the distribution of gas or electricity; for purposes of transportation and transit, including but not limited to street and supporting improvements, roads, overpasses, bridges, harbors, ports, airports, and related facilities; for parks and recreational improvements; for public safety, including police and fire services; for public buildings, including public libraries; or for any other capital project identified in the city's adopted capital improvements program or community facilities element of the general plan.

(d)

Capital improvements plan means the five-year plan for capital improvements included in the proposed budget adopted annually by the city council or the community facilities element of the general plan. The capital improvements plan and the community facilities element of the general plan. Describe the approximate location, size, time of availability and estimated cost of capital improvements. The capital improvements plan appropriates money for such capital improvements projects.

(e)

Capital improvements project list means the list attached to the annual resolution setting the base fee amount for thoroughfare, traffic signal, drainage, water and sewer impact fees or the list contained in the community facilities element of the general plan. The list shall describe the approximate location, size, time of availability and estimated cost of each capital improvement to be funded from a particular impact fee account.

(f)

Collection means the point at which the impact fee due is actually paid by the applicant to the city.

(g)

Commitment means earmarking of impact fees to fund or partially fund capital improvements serving new development projects.

(h)

Development project means any project undertaken for the purpose of development and includes a project involving the issuance of a permit for construction or reconstruction, but not a permit to operate.

(i)

Dwelling unit. "Dwelling unit" is one (1) or more habitable rooms which are occupied or which are intended or designed to be occupied by one (1) or more individuals with facilities for living, sleeping, cooking and eating and includes a mobilehome; and in the case of hotels and rooming houses, a "dwelling unit" shall consist of five (5) rooms of the rooms intended to be occupied on a rental basis for residency purposes. "Dwelling unit" shall also mean each five (5) rental spaces in a recreational trailer park.

(j)

Impact fee means any monetary exaction imposed as a condition of or in connection with approval of a development project for the purpose of defraying all or a portion of the cost of capital improvements related to the development project.

(k)

Impose means the determination that a particular development project is subject to the collection of impact fees and the attachment of such determination to a particular development project as a condition of development approval.

(l)

Nonresidential development project means all development other than a residential development project.

(m)

Residential development project means the development of any property for use as a dwelling unit or dwelling units.

(Ord. No. 88-45, § 1, 12-14-88; Ord. No. 91-11, §§ 4—6, 2-27-91; Ord. No. 05-OR0342-1, § 1, 5-4-05)

(a)

The city council shall by resolution set forth the amount of each impact fee rate. Prior to the establishment or increase of any impact fee, the city council shall hold a public hearing in accordance with Government Code section 66018.

(b)

A resolution establishing a new impact fee or increasing an existing impact fee shall take effect no sooner than sixty (60) days following adoption of the resolution.

(c)

Unless otherwise prohibited by law, the impact fees shall be automatically adjusted for inflation on July 1 of each year. The inflation adjustment is the greater of two (2) percent or the percentage change in the Construction Cost Index (CCI) as most recently published by the Engineering News Record (20-Cities Average) for a twelve-month period, or a similar published index if the CCI is no longer available.

(Ord. No. 88-45, § 1, 12-14-88; Ord. No. 25-OR0670-1, § 3, 12-3-2025)

An ordinance or resolution establishing a new fee or increasing an existing impact fee shall take effect no sooner than sixty (60) days following the final action by the city on the ordinance or resolution.

(Ord. No. 88-45, § 1, 12-14-88)

(a)

Impact fees shall be imposed as a condition of all development projects. No tentative or final subdivision map, parcel map, grading permit, building permit, final inspection or certificate of occupancy shall be approved unless the provisions of this section have been fulfilled.

(b)

Impact fees shall be imposed by affixing the following language to the development approval:

Approval of this development project is conditioned upon payment of all applicable impact fees and connection fees in the manner provided in chapter 32B of the Oceanside City Code.

(c)

The calculation of impact fees due shall be based upon the impact fee schedule in effect at the time of issuance of a building permit. Impact fees for non-residential development projects shall be collected at the time of issuance of a building permit. Fees for residential development projects shall be collected in accordance with Government Code section 66007.

(d)

Subject to Government Code section 66007, no building permit shall be issued until all impact fees due for the development project have been paid.

(e)

Notwithstanding the provisions of subsections (c) and (d) above; requests for the deferral of development impact fees may be submitted to the city engineer under the following procedures:

(1)

A written request shall be made no later than forty-five (45) days prior to issuance of a building permit.

(2)

A request shall be made only for a residential or non-residential development project that has received final discretionary action by the city and that is in compliance with all environmental requirements due prior to issuance of a building permit.

(3)

Unless otherwise prohibited by law, a request shall be accompanied by a non-refundable payment of a five hundred dollars ($500.00) processing fee, and the applicant shall be responsible for paying all costs associated with recording an agreement should the request be approved.

(4)

If a request for deferral of development impact fees is approved, the applicant, and the owner of the project property, if different, shall enter into a "fee deferral agreement" with the city, in a form acceptable to the city attorney, agreeing to a payment plan for the approved deferred fees. The applicant's obligations under the fee deferral agreement shall be secured by either a lien on the project property or an irrevocable letter of credit.

a.

Subject to subsection 32B.7(e)(4)b., below, the fee deferral agreement shall constitute a lien on the project property. The city manager is authorized to execute the agreement on behalf of the city and to cause the agreement to be recorded with the San Diego County Recorder's Office. The lien may be released when the obligation is paid in full.

b.

As an alternative to recording the fee deferral agreement that constitutes a lien on the project property, the applicant may, prior to and as a condition of issuance of the building permit, provide an irrevocable letter of credit pursuant to procedures established by the city engineer. The amount of the letter of credit shall be calculated per the fees in effect at the time of execution of the agreement with the city; however, the city may require that the amount of the letter of credit be increased if there is an increase in fees during the time the agreement is in effect.

(5)

The amount of any deferred fees shall be calculated according to the applicable fee schedule set by resolution of the city council in effect at time of payment. All fees subject to the payment plan agreement shall be paid in full by the earlier of: (1) the date of the final inspection, or (2) the date the certificate of occupancy or temporary occupancy is issued. A utility release and installation of a water meter(s) to serve the development shall only be made after payment in full of water system buy-in fees and wastewater system buy-in fees.

(6)

The city's approval of a fee deferral is not transferrable to any other project.

(Ord. No. 88-45, § 1, 12-14-88; Ord. No. 91-11, § 7, 2-27-91; Ord. No. 02-OR331-1, § 1, 5-8-02; Ord. No. 18-OR0479-1, § 1, 9-19-2018; Ord. No. 25-OR0670-1, §§ 4—6, 12-3-2025)

(a)

There is hereby established an impact fee account for each benefit area for each type of capital improvement for which an impact fee is imposed, calculated and collected. The funds of the account shall not be commingled with other revenues or funds of the city. In the event that an account has previously been established pursuant to separate ordinance for deposit of impact fee proceeds, such account shall be deemed an impact fee account under this section and shall be subject to the provisions of this chapter.

(b)

All impact fees collected within the benefit area shall be deposited within the impact fee account, which shall be an interested-bearing account and which interest shall be considered funds of the account.

(c)

The funds of the account shall be expended within the benefit area and shall be used exclusively for capital improvements for which the impact fees were collected.

(Ord. No. 88-45, § 1, 12-14-88)

(a)

Impact fees shall be expended only for the type of capital improvement for which they were imposed, calculated and collected, and shall be expended or committed in accordance with the time limits and procedures established in this chapter. Impact fees may be used to pay the cost of capital facilities as permitted by law.

(b)

Impact fees shall not be expended to address existing deficiencies, but may be used to refurbish existing facilities to maintain the existing level of service or achieve an adopted level of service that is consistent with the city's general plan.

(Ord. No. 88-45, § 1, 12-14-88; Ord. No. 91-11, § 8, 2-27-91; Ord. No. 25-OR0670-1, § 7, 12-3-2025)

The city shall expend or commit impact fees deposited in the impact fee account within five (5) years from the date of deposit into the fund.

(Ord. No. 88-45, § 1, 12-14-88)

(a)

Once each fiscal year, the city shall make findings identifying all unexpended or uncommitted impact fees in each impact fee account.

(b)

Except as described in subsection (c) of this section, upon application of the property owner of the city shall refund to portions of any impact fee which have been on deposit over five (5) years and which are unexpended or uncommitted. Refunds shall be made to the then current record owner or owners of the development project or projects on a prorated basis, together with accrued interest.

(c)

With respect to fees unexpended or uncommitted within five (5) years of deposit in an impact fee account, the city may make findings 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. If the city makes such findings, the fees are exempt from the refund requirement.

(d)

If the city finds that the administrative costs of refunding the unexpended or uncommitted impact fees exceed the amount to be refunded, the city council, after a public hearing, notice of which has been published in accordance with state law and posted in three (3) prominent places within the area of each development project subject to a refund, may determine that the revenues shall be allocated for other capital improvements of the type for which the fees were collected and which serve the development projects.

(e)

The city may refund the unexpended or uncommitted portions of impact fees by direct payment, by offsetting such refunds against other impact fees due for development projects on the property, or by other means subject to agreement by the property owner.

(Ord. No. 88-45, § 1, 12-14-88)

The applicant or property owner may request an audit of any impact fee imposed by the city, except for water or sewer connection fees or capacity charges, in order to determine: (1) whether the amount of the fee levied by the city exceeds the amount reasonably necessary to finance capital improvements, the need for which is attributable to new development projects; (2) when the revenue generated by a fee is scheduled to be expended; or (3) when the capital improvement is scheduled to be completed. After such request, the city council may retain an independent auditor to conduct an audit to determine whether the impact fee is reasonable. Any costs incurred by the city in having an audit conducted by an independent auditor shall be recovered from the person who requested the audit. If an audit is requested, the city may require a deposit equal to the estimated cost of the audit.

(Ord. No. 88-45, § 1, 12-14-88; Ord. No. 25-OR0670-1, § 8, 12-3-2025)

(a)

The property owner or applicant may appeal to the city council any decision of a city official with respect to the imposition or calculation of an impact fee or the amount of any refund due. The burden of proof is on the applicant to demonstrate that the imposition of the fee or amount of the fee or refund was not calculated according to the procedures established herein.

(b)

An appellant protesting the imposition of an impact fee must file a notice of appeal with the city clerk within ten (10) calendar days following the final decision on the imposition of the fee or refund.

(c)

An appellant protesting the calculation of an impact fee or the determination of applicability and calculation of a refund must file a notice of appeal with the city clerk within ten (10) calendar days following the final decision on the calculation of the impact fee or on the applicability or calculation of a refund. If the notice of appeal is accompanied by a bond or other sufficient surety satisfactory to the city attorney in an amount equal to the impact fee calculated by the city official to be due, the development application shall be processed. The filing of an appeal shall not stay the collection of the fee which is due unless a bond or other sufficient surety has been filed.

(d)

Failure to appeal within the time limits as set forth herein shall be deemed a waiver of the right to appeal.

(e)

Any judicial action or proceeding to attach, review, set aside or annul the reasonableness, legality or validity of the imposition of an impact fee must be filed and service of process effected within ninety (90) days after the date of imposition.

(f)

Any judicial action or proceeding to attach, review, set aside or annul the calculation of an impact fee or the determination of applicability and calculation of a refund must be preceded or accompanied by a valid protest within ninety (90) days after the date of calculation. A valid protest must meet both of the following requirements:

(1)

Tendering the required payment in full or providing satisfactory assurance of payment.

(2)

Serving written notice on the city, including:

(A)

A statement that the required payment is/has been tendered under protest.

(B)

A statement informing the city of the factual elements of the dispute over the calculation of the impact fee or the determination of applicability and calculation of a refund.

(C)

A statement informing the city of the legal theory forming the basis for the protest.

(g)

Only a party who files a valid protest may file a judicial action to attach, review, set aside, void or annul a decision on the calculation of an impact fee or the applicability and calculation of a refund. Such judicial action must be filed and service of process effected within one hundred eighty (180) days after the date of calculation.

(Ord. No. 88-45, § 1, 12-14-88)

Petitions for exceptions to the application of this chapter shall be made in accordance with procedures established by resolution of the city council. If the city council grants an exception in the amount of the impact fee due for a development project under this section, it shall cause to be appropriated from other city funds an amount equal to said reduction in the impact fee due and such funds shall be allocated to the account for the benefit area in which the subject property is located.

(Ord. No. 88-45, § 1, 12-14-88)

At least once every year prior to city council adoption of the annual budget and capital improvements plan, staff shall prepare a report to the city council on the subject of impact fees and shall incorporate:

(1)

Recommendations on amendments, if appropriate, to this chapter, to ordinances imposing impact fees, or to resolutions establishing impact fee amounts;

(2)

Proposed changes to the capital improvements program identifying capital improvements to be funded by impact fees;

(3)

Proposed changes to the boundaries of benefit areas; and

(4)

Proposed changes to impact fee rates or schedules.

Based upon the report and such other factors as the city council deems relevant and applicable, the city council may amend this chapter, specific ordinances imposing impact fees, and resolutions establishing impact fee rates or schedules. Changes to the impact fee rates or schedules, to the boundaries of benefit areas, or to the list of capital improvements to be funded by impact fees may be made by resolution. Nothing herein precludes the city council or limits its discretion to amend this chapter, ordinances imposing impact fees, or resolutions establishing impact fee rates or schedules at such other times as may be deemed necessary.

(Ord. No. 88-45, § 1, 12-14-88)

In the event of a conflict between the provisions of this chapter and the provisions of any other ordinance or resolution establishing or amending impact fees, the provisions of this chapter shall govern.

(Ord. No. 88-45, § 1, 12-14-88)

If any section, subsection, sentence, clause, phrase or portion of this chapter is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this chapter. The city council declares that it would have adopted this chapter and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, phrases or portions be declared invalid or unconstitutional.

(Ord. No. 88-45, § 1, 12-14-88)