Chapter 3.30 — ESTABLISHING AND CONFIRMING PUBLIC FACILITY FEES FOR NEW DEVELOPMENT

A.

The city council hereby creates and establishes development impact fees for the city which shall be used to mitigate adverse impacts to public facilities attributed to new development in each of the following categories: Public safety facilities; parks and recreational facilities; sanitary sewer facilities; storm drainage facilities; water supply treatment and storage facilities; streets and thoroughfares; and traffic control facilities.

For convenience, all of the development fees so established shall be referred to in this chapter in the singular, as "the fee." Specifically, the fee shall be used by the city to pay a portion of the costs of designated public facilities impacted by new development. The fee shall be based on a method designed to insure that developers pay their fair share of the cost of such public facilities required to serve the city's growing population.

B.

Such public facilities are currently identified in the City of Orange Cove Impact and Improvement Fees for Residential Developments Report prepared by Yamabe & Horn Engineering, Inc. Facilities may be added to or deleted from the report and subsequent Capital Improvement Plans (CIP), but the city council directs that the fee shall be used only for public facilities in any one of the categories of essential infrastructure, (as that terms is defined in this chapter) for which that fee was collected.

C.

Fees charged by the city for connection to the water or wastewater systems shall remain as currently adopted in Chapters 13.4 and 13.08 of this code. Such connection service charges are not considered development impact fees and subject to Section 66000 of the California Government Code.

(Ord. 298 § 1(part), 2002)

For purposes of this chapter, the following words shall have the meanings indicated in this section:

2025 General Plan. "2025 General Plan" refers to the city of Orange Cove General Plan, 2003—2025, in effect on January 1, 2007.

"Build out of the city" means general plan area adopted in 1979.

"Essential infrastructure" means each of the following, including any related facilities:

Public safety facilities;

Parks and recreation facilities, (which does not include dedication of parklands pursuant to the Subdivision Map Act);

Sanitary sewer facilities;

Streets and thoroughfares;

Traffic control facilities;

Storm drainage facilities;

Water supply facilities.

"New development" means any residential (single- or multi-family), commercial, industrial, parks, or schools development which occurs in the city after the effective date of Ordinance No. 298 and/or any amendment to this chapter. For purposes of the water supply impact fees established herein, "new development" refers to any residential, industrial, parks, school, or commercial development within the 2025 General Plan Sphere of Influence area for the city.

Nexus Study. The term "nexus study" as used herein refers to a city-approved analysis of the treated water supply needs of the city, the expense of the necessary facilities, infrastructure, or amenities, and the proportionate share of the expense attributable to each unit of new development.

"Parks and recreation facilities" means any improvement related to the city park and recreational facilities, which will be required either to improve and/or expand existing facilities or to construct new facilities, based on studies adopted by the city or associated with an improvement program, or any of them, to provide park and recreational services to the new development which is projected to come into the city between the effective date of the ordinance codified in this chapter and built out of the city at a level which is comparable to the level currently provided to the existing residents of the city. This fee does not include the estimated cost for the acquisition of the land for new parks. The requirement for dedication of land for parks is subject to the Subdivision Map Act (Section 66477) and Chapter 16.32 of this code, and requires new development to provide land (or a fee in lieu of land) at a level of four acres per one thousand of population generated by new residential development as required in Section 16.32.040. If the developer decides and the city agrees to install facilities that are part of the improvement program in a park, the actual cost of the installation of facilities may be credited against the development fee for park and recreation facilities and other development fees contained in this chapter that would be collected as a result of the development.

"Public safety facilities" means any improvements related to the police department and the delivery of police services, based on studies adopted by the city or associated with an improvement program, or any of them, to provide police protection services to new developments which is projected to come into the city between the effective date of the ordinance codified in this chapter and ten years from the date of January 14, 2002 at a level which is comparable to the level currently provided to the existing residents of the city. If the developer decides and the city agrees to install facilities that are part of the improvement program, the actual cost of the installation of facilities may be credited against the development fee for public safety facilities and other development fees contained in this chapter that would be collected as a result of the development.

"Sanitary sewer facilities" means all of the sewage treatment facilities, including sewage treatment plants, basins for de-watering treated or partially treated sewage, sludge drying beds, sludge storage and transportation facilities, any land acquired by the city for the purpose of treating or disposing of water which is the byproduct of the treatment of sewage, and related facilities which are necessary for the purpose of treating domestic sewage as will be required by the city, based on studies adopted by the city or associated with an improvement program, or any of them, to provide sewage treatment services to the new development which is projected to come into the city between the effective date of the ordinance codified in this chapter and built out of the city. If the developer decides and the city agrees to the installation of facilities that are part of the improvement program, the actual cost of the installation of the facilities may be credited against the development fee for sanitary sewer facilities and other development fees contained in this chapter that would be collected as a result of the development.

"Sphere of influence" means the city's sphere of influence area as designated within the city of Orange Cove General Plan, 2003—2025, in effect on January 1, 2007, which includes lands within the existing city boundaries as of January 1, 2007.

"Storm drainage facilities" means all of the storm water collection, retention and disposal facilities, including storm water mains, ditches, canals, pumps, pump stations, retention basin, detention basins and related facilities which are necessary for the purpose of collecting storm water run off and transporting it to the appropriate storm water basin as will be required, based on studies adopted by the city or associated with an improvement program, or any of them, to provide storm water collection and disposal services to

the new development which is projected to come into the city between the effective date of the ordinance codified in this chapter and built out of the city. The fee is not applied to heavy industrial types of uses because such uses are required to construct on-site drainage facilities and will not use facilities contained in the improvement program. The fee does not include any such facilities which the developer is required to provide himself that are not part of the improvement program that must be installed as part of the development improvements. If the developer decides and the city agrees to the installation of facilities that are part of the improvement program, the actual cost of the installation of the facilities may be credited against the development fee for storm drainage facilities and other development fees contained in this chapter that would be collected as a result of the development.

"Streets and thoroughfares" means the cost of widening, construction of additional lanes of travel, as well as, other work which will be required due to new development generating additional motor vehicle trips on the city's existing network of arterial, collector and local streets, based on studies adopted by the city or associated with an improvement program, or any of them. These costs include, but are not limited to, the costs of the acquisition of additional right-of-way, the cost of clearing, grading and paving, as well as, the costs of necessary traffic studies to determine the timing of the construction of these facilities so that the city's traffic congestion level remains at no worse than at the time of the adoption of the ordinance codified in this chapter. The fee does not include any such facilities which the developer is required to provide himself that are not part of the improvement program that must be installed as part of the development improvements. If the developer decides and the city agrees to the installation of facilities that are part of the improvement program, the actual cost of the installation of the facilities may be credited against the development fee for streets and thoroughfares and other development fees contained in this chapter that would be collected as a result of the development.

"Traffic control facilities" means the cost of acquiring, installing, wiring and regulating traffic signals, traffic signs and any other traffic control devices which will be required to regulate the flow of motor vehicle traffic due to new development generating additional motor vehicle trips on the city's existing network of arterial, collector and local streets, based on studies adopted by the city or associated with an improvement program, or any of them. The fee does not include any such facilities which the developer is required to himself that are not part of the improvement program that must be installed as part of the development improvements. If the developer decides and the city agrees to the installation of facilities that are part of the improvement program, the actual cost of the installation of the facilities may be credited against the development fee for traffic control facilities and other development fees contained in this chapter that would be collected as a result of the development.

"Water acquisition costs" means the expense attributable to exercising an option to purchase and purchasing surface water supply, such as through the Lower Tule River Irrigation District contract or other long-term transfer agreement and/or implementing water conservation measures or water banking activities to provide additional water supply to Orange Cove for new development within the sphere of influence area.

"Water acquisition impact fee" means a fair-share impact fee for new development that reflects a proportionate share of the city's expense of acquiring new water supplies to accommodate planned growth within the city's sphere of influence area. The city shall annually consider the adoption of a resolution to establish, and/or amend an existing, fair and equitable impact fee to allocate the expense of acquiring additional water supplies for the new development within the undeveloped areas within the city's sphere of

influence. For example, the city may acquire water supplies pursuant to the Lower Tule River Irrigation District agreement or other agreements for a long-term transfer of water supply, through water banking, or through the implementation of water conservation measures in Orange Cove.

Water Supply Impact Fees. The phrase "water supply impact fees" as used herein shall refer collectively to the water treatment facility impact fee and the water acquisition impact fee authorized pursuant to Section

"Water supply treatment facilities" means all of the domestic water production facilities, including water uptake, water pumps and pump stations, canal structures, major transmission lines from the point of uptake and any water treatment facilities or associated treatment equipment or monitoring devices or equipment, and related facilities which are necessary for the purpose of supplying domestic water to any water treatment or storage facility for the storage of domestic water for consumption or fire flow reserves, and related facilities for the production of domestic water as may be required, based on studies adopted by the city or associated with an improvement program, or any of them, to provide water delivery services to the new development which is projected to come into the city between the effective date of the ordinance codified in this chapter and built out of the city. If the developer decides and the city agrees to the installation of facilities that are part of the improvement program, the actual cost of the installation of the facilities may be credited against the development fee for water supply treatment facilities and other development fees contained in this chapter that would be collected as a result of the development.

"Water treatment costs" means the expense attributable to expanding the existing water treatment plant facilities to provide additional water supply to Orange Cove for new development within the sphere of influence area. The water treatment costs allocated to each unit of new development through the water treatment facility impact fee shall not include costs associated with any proposed expansion of the water treatment plant beyond the capacity necessary to accommodate growth within the sphere of influence area.

"Water treatment facility impact fee" means a fair-share impact fee for new development that reflects a proportionate share of the city's expense of expanding the water treatment plant to provide sufficient treatment capacity to accommodate planned growth within the city's sphere of influence area. The city shall annually consider the adoption of a resolution to establish, and/or amend an existing, fair and equitable impact fee to allocate the expense of expanding the existing water treatment plant to build treatment capacity for the new development within the undeveloped areas within the city's sphere of influence. A Kennedy-Jenks study to determine the expense and extent of a requisite expansion to accommodate planned growth within the city's sphere of influence area will inform the fair-share impact fee established by subsequent resolution.

"Water treatment plant expansion" means the action to be approved and undertaken by the city consistent with the Kennedy-Jenks water treatment plant study to ensure sufficient treatment capacity to provide new development within the sphere of influence area a safe and reliable water supply.

(Ord. 325 §§ 3, 4, 2007; Ord. 298 § 1(part), 2002)

For all of the essential infrastructure the city council is committed to maintaining the same level of public facilities and services and the same facilities-to-population relationship which existed on the date of the most recent amendment of this chapter in order to ensure that, to the extent that growth of the city occurs in the future, there will be an adequate level of public facilities and services. The city council finds that a reasonable relationship exists between the need for additional public facilities, equipment and operations which the fee is designed to pay, and the type of development project for which the fee is imposed for the following reasons:

A.

The city council has determined that new commercial and industrial developments result in a need for additional public services which, in turn, ultimately result in a need for additional government and public facilities for Essential Infrastructure and related facilities. Based on the level of public services and public facilities-to-population relationship for government and law enforcement services which existed on the date of the adoption and amendment of this chapter, the generation of traffic from consumers and/or employees based on the type of commercial or industrial use, the consumption of domestic water and production of wastewater based on average demand of similar or existing commercial or industrial uses, and the amount of storm water run off generated by the installation or construction of impermeable surfaces, the city council determines that commercial and industrial development should be assessed fees at rates to be established by resolution of said city council as the fair share of contribution of the costs of these required facilities and services.

B.

The city council has determined that residential development results in significant increases in city population and that such residential development adversely affects the public facilities-to-population relationship which existed on the date of the adoption and amendment of this chapter. The city council has further determined that because residential development results in significant increases in population, such development results in the need for essential infrastructure and related facilities, including but not limited to, public safety facilities, traffic systems, including signalization, domestic water production and distribution, wastewater collection, treatment and disposal, and parks and recreation facilities based on the public facilities-to-population relationship which existed on said date, storm water collection and disposal facilities based on the average amount of impermeable surface constructed for new residential development, residential development shall be assessed a fee at the rate established by resolution of the city council for the costs for these required public facilities and services.

C.

The city council has determined that schools development results in significant increases in city population and that such schools development adversely affects the public facilities-to-population relationship which existed on the date of the adoption and amendment of this chapter. The city council has further determined that because schools development results in significant increases in population, such development results in the need for essential infrastructure and related facilities, including but not limited to, public safety facilities, traffic systems, including signalization, domestic water production and distribution, wastewater collection, treatment and disposal, based on the public facilities-to-population relationship which existed on said date, storm water collection and disposal facilities based on the average amount of impermeable

surface constructed for new schools development, schools development shall be assessed a fee at the rate established by resolution of the city council for the costs for these required public facilities and services.

(Ord. 298 § 1(part), 2002)

The fee by resolution of the city council shall be adjusted from time to time, but not less than annually, subject to city council review and approval, after a noticed public hearing, to reflect changes in costs as determined by the city manager in a written report.

A.

The fee established by resolution of the city council shall be escalated on an annual basis in an amount equal to change in the National Average Construction Cost Index as published by the Engineering News Record. Such increase is not deemed an increase in the amount of the fee and subject to the provisions of Section 66000 of the California Government Code.

(Ord. 298 § 1(part), 2002)

development upon which the fee is imposed.

The city council finds that there is a reasonable relationship between the amount of the fee set by resolution of the city council and the cost of the public facilities or portions thereof attributable to the new development on which the fee is imposed. The basis for such determination is set out in reports to the city council from Yamabe & Horn Engineering, Inc., and such consultants as the city council determines are necessary, if any, to develop accurate costs and the fee to cover new public facilities and services.

(Ord. 298 § 1(part), 2002)

imposed.

The city council finds that there is a reasonable relationship between the use of the fee for specified categories of public facilities and the type of development project for which the fee is imposed for the following reasons:

A.

The city council finds that the imposition of the fee on schools development for parks and recreation facilities is not reasonable because the city council determines that there is no substantial demand placed on such facilities as a result of new schools development. The city council finds further that because commercial, industrial and schools developments do increase demand on all other essential infrastructure and related facilities, the city council finds that the use of the fee generated from commercial and industrial development for such facilities is reasonable.

B.

The city council finds that the use of the fee generated from new residential development for all essential infrastructure and related facilities, including but not limited to, water supply treatment facilities, wastewater treatment and disposal, public safety services, parks and recreation facilities and storm water collection and disposal, is reasonable because growth in residential population places additional demands on all such facilities.

C.

The city council further finds that funding of the costs of essential infrastructure, based on studies adopted by the city or associated with an improvement program, and any of them, accomplishes the goals and purposes set forth in subsections (A) and (B) above and that the use of revenues generated by the fee for projects and outlays set forth in studies adopted by the city or associated with an improvement program is warranted and justified.

(Ord. 298 § 1(part), 2002)

A.

The city will adopt resolutions to establish two water supply impact fees, the water acquisition impact fee and the water treatment facility impact fee, each separately calculated according to the following procedure:

The city will determine the total costs of acquiring water supply to accommodate new development planned for the sphere of influence area.

The city will determine the total costs of expanding the water treatment plant sufficient to provide treatment capacity for new development planned for the sphere of influence area.

The city will establish a capital improvements program, which will include the total cost of the water treatment expansion. The program will identify the sources of funds to pay for the project, and will specifically show the unmet funding need that the water treatment facility impact fee will meet.

The city will determine the fair-share allocation for each acre of residential, commercial, and industrial development based on the total costs to acquire the water supply and the total unmet funding need to expand the water treatment plant. By and through subsequent resolution of the city, the water acquisition impact fee and the water treatment facility impact fee will be calculated for each additional new development unit, within a given land use category, by multiplying the cost per acre of development by the number of acres proposed for development.

B.

The water supply impact fees are not intended to be the sole source of funding for the expansion of the water treatment plant expansion or the entire purchase of water from Lower Tule River Irrigation District or other source. The total amount of revenue generated by the water supply impact fees collected pursuant to this chapter shall not exceed the cost of the water treatment plant expansion and the water purchase (including expenses incurred for maintaining and exercising the option to purchase) from Lower Tule River Irrigation District or other source. Revenues collected by way of the water supply impact fees shall not contribute to any expense resulting from an existing water supply or treatment capacity deficiency of the city.

C.

Exemptions. The reconstruction of any residential, commercial, or industrial structure that has been destroyed by fire, flood, or natural disaster or a proposed redevelopment of a residential, commercial, school, park, or industrial property is exempt from payment of any fee authorized by this section so long as the project applicant or owner provides, at its own expense, a water demand analysis demonstrating that the newly constructed structure will require equal to or less water than the prior use of the property.

D.

Credits.

The city may provide credits towards the water treatment facility impact fee pursuant to Section 3.30.020 of this chapter.

The city shall apply a credit to the fair-share water supply impact fee obligations of development projects where the project applicant contributes city-approved water supply improvements, including the provision of additional water supplies, initiation of water banking efforts to benefit Orange Cove, or the implementation of water conservation measures. The city shall calculate the credit amount for each contribution on a case-by-case basis. Application of such a credit does not preclude a project applicant from utilizing the appeal process set forth in subsection F of this section.

E.

Collection of Fee.

The city finds and declares that in order to acquire water supplies and provide the treatment capacity necessary to ensure a safe and reliable water supply for new development, the city will require provision of water supply impact fees prior to the issuance of a final subdivision map.

The city shall condition approval of any vested tentative parcel map upon payment of fees pursuant to this section.

The collection of water supply impact fees prior to issuance of a final subdivision map is justified pursuant to Government Code, Section 60007(b) because the city shall establish separate accounts for the water acquisition impact fee and the water treatment facility impact fee prior to the adoption of a resolution establishing the amount of said fee. Initial revenues collected within the water acquisition impact fee account will be directed towards the reimbursement of expenses already incurred by the city to secure the Lower Tule River Irrigation District long-term water transfer agreement. Revenues collected within the water treatment facility impact fee account will be governed by the water treatment facility improvement plan to be approved by to the city prior to adoption of the resolution establishing the water treatment facility impact fee.

If the city considers issuance of an occupancy or building permit for a proposed project within the city's sphere of influence area and no water supply impact fees have been paid for said new development, the project applicant shall at that time pay its fair-share water supply impact fees.

To the extent a project applicant is willing to pay more than the applicant's fair-share water supply impact fees, the city shall enter into reimbursement agreements to reimburse the upfront payment through revenue generated from payment of fair-share water supply impact fees paid by other project applicants.

The city shall immediately deposit any water acquisition impact fee revenues received into a separate account for water acquisition impact fees. Revenues deposited in this separate account may only be withdrawn for expenses incurred by the city for water acquisition solely benefiting new development within the city's sphere of influence area.

The city shall immediately deposit any water treatment facility impact fee revenues received into a separate account for water treatment facility impact fees. Revenues deposited in this separate account may only be withdrawn for expenses incurred by the city for water acquisition solely benefiting new development within the city's sphere of influence area.

F.

Appeal Process. Should a project applicant believe the fee amount established within the resolution(s) is not appropriate for a proposed project, the applicant may prepare, at his or her own expense, a water supply demand study conducted by a city-approved engineer that forecasts the anticipated water demand for the proposed development. The study procedure and results shall require the approval of the city manager or his or her designee.

G.

Annual Fee and Program Review. The city will adhere to the annual fee and program review requirements set forth in Section 3.30.100 of this chapter. The city will annually consider revision of the water supply impact fees by way of resolution to address new or changed expenses associated with the acquisition of additional water supplies and improvement to the city's water treatment system.

(Ord. 325 § 7, 2007)

Any owner or developer applying for a building permit for commercial or industrial development shall be assessed and shall pay the fee in conjunction with payment for the building permit subject to the provisions of Government Code Section 66007.

Any owner or developer of a residential development shall pay the fee on the date of final inspection or the date the certificate of occupancy is issued, whichever occurs first.

In the case of parcel maps or subdivisions, the fee shall be paid on a lump sum basis, as follows:

A.

When the first dwelling in the development receives its final inspection or certificate of occupancy, whichever occurs first, that portion of the fee shall be paid which represents payment for each of the following: Law enforcement facilities.

B.

As a condition of filing the final subdivision map, that portion of the fee shall be paid which represents payment for each of the following: Recreation facilities; sewage treatment facilities; streets and thoroughfares; storm water collection and disposal facilities; traffic control facilities; and water supply treatment facilities.

(Ord. 298 § 1(part), 2002)

Any owner or developer engaging in development activities which satisfy the following criteria shall not be required to pay the fee:

A.

An alteration which does not increase the floor area of a structure; or

B.

An addition to a single-family residential dwelling unit which does not constitute the addition of a dwelling unit as defined by the Uniform Building Code.

(Ord. 298 § 1(part), 2002)

A.

Pursuant to Government Code Section 66006, the city council directs that each of the fees collected hereunder shall be maintained in a fund separate from the city's general fund and separate from each other in the following special accounts:

Public safety facilities;

Park and recreational facilities;

Sanitary sewer facilities;

Storm drainage facilities;

Traffic control facilities;

Water supply treatment facilities.

B.

The city shall use the funds so deposited into these special accounts (along with interest earnings thereon) for the costs of public facilities as specified herein and only for the category of improvements for which the funds were deposited in that particular account.

C.

If the fee paid by an owner or developer for a particular development has been retained by the city for five or more years, and the city has not committed that fee to costs for public facilities, then the city council shall make findings describing the continuing need to retain the fee each fiscal year thereafter. If the city council does not make such findings, then the city shall refund the collected fees as appropriate, along with the interest, if any, which those funds have generated since they were collected.

(Ord. 298 § 1(part), 2002)

A.

Each year, during the budget review process, the city council shall review the status of compliance with this chapter and the degree to which fees collected pursuant to this chapter are mitigating the impacts of new industrial, commercial, schools and residential development projects and new development entitlements.

B.

For each of the accounts established by this chapter, the city shall, within sixty days after the close of each fiscal year, make available to the public all of the following information:

The beginning and ending balance for the fiscal year in that account;

The fee, interest and other income to that account for the fiscal year;

The amount of expenditure by line item category from that account during the fiscal year;

The amount of refunds made pursuant to Section 66001(e) of the Government Code out of that account during the fiscal year.

C.

The city council shall review the information described in subsection (B) above, at the next regularly scheduled public meeting of the council, not less than fifteen days after the information required by that subsection is made available to the public.

D.

Five years after the effective date of the ordinance which adopted this chapter, the city council shall consider a report by the city administrator reviewing the fee formulae established to implement the provisions of this chapter and their basis to determine whether any adjustments in the fee formulae are warranted.

(Ord. 298 § 1(part), 2002)