Chapter 15.46 — STREET FACILITY REIMBURSEMENT FEES

This chapter is adopted in order to establish a procedure for reimbursing developers of property located within the city, as well as the Orland redevelopment agency and the city itself, for a portion of the costs of constructing and installing street facilities which adjoin other properties within the city, reduce the cost of any additional development occurring on such other properties by eliminating the need for construction and installation of such street facilities at the time such development occurs, and, by reason thereof, directly benefit such other properties.

(Ord. No. 2013-08, §§ 1, 2)

The city council makes the following findings and determinations provided for in Section 66001 of the Government Code in regard to the street facility reimbursement fees assessed and levied pursuant to the provisions of this chapter.

A.

The city council finds that developers of property located in the city are often required to construct and install off-site street facilities incident to or as condition of the approval or issuance of a final map, parcel map, certificate of compliance for a minor land division or a building permit which, while necessary to serve development occurring on their property, also adjoin other properties, reduce the cost of additional development occurring on such other properties by eliminating the need for the construction and installation of such street facilities at the time such development occurs, and, by reason thereof, directly benefit such other properties. Similarly, the city often constructs and installs street facilities adjoining properties located in the city which directly benefit such properties. Because such street facilities benefit adjoining properties, the city council finds that it is equitable and proper to assess and levy a fee on the owners of such properties incident to and as a condition of additional development occurring on the properties in an amount equal to each property's proportional share of the cost of constructing and installing the street facilities, and to use the revenue derived from such fees for the purpose of reimbursing the initial developer and/or the city for the cost of constructing and installing that part of such street facilities which benefit such adjoining properties. By reason of the foregoing, the city council determines that there is a reasonable relationship between the street facilities, the costs of which will be reimbursed with the fees assessed and levied pursuant to the provisions of this chapter, and the development upon which such fees are imposed.

B.

The city council finds that the revenues from the street facility reimbursement fees assessed and levied pursuant to the provisions of this chapter will be used to reimburse developers and/or the city as and for the cost of that part of the street facilities constructed and installed by them which benefit the adjoining properties for which such fees are assessed.

In particular, the city council finds that in accordance with the provisions of this chapter, the revenue from the street facility reimbursement fees assessed and levied against an owner of property pursuant to a memorandum of reimbursable street facility costs approved by the city council for an initial developer in the manner provided by this chapter must be used for the purpose of reimbursing the initial developer over a twenty-year period for the cost of that part of the street facilities constructed and installed by the initial

developer which benefit such property, all in accordance with the terms and conditions of a reimbursement agreement between the city and initial developer executed in the manner provided by this chapter. By reason of the foregoing, the city council determines that there is a reasonable relationship between the use of street facility reimbursement fees provided for by this chapter and the development upon which such fees are imposed.

C.

The city council finds that the street facility reimbursement fees assessed and levied pursuant to the provisions of this chapter for the purposes of reimbursing developers and/or the city as and for the costs of constructing and installing street facilities which benefit adjoining properties will be in an amount equal to each such property's proportional share of such costs. In particular, the city council finds that in accordance with the provisions of this chapter, the amount of street facility fees assessed and levied pursuant to a memorandum of reimbursable street facility costs approved by the city council for an initial developer and/or the city in the manner provided by this chapter will be based on the product of the cost per foot of constructing such street facilities, determined from the actual costs incurred by the initial developer and/or the city in designing, constructing and installing the street facilities, or as calculated from unit street facility costs established by resolution of the city council, whichever is less, multiplied by the total footage of that part of a benefited parcel fronting on the street facilities and adjusted for any increase in the cost of constructing and installing street facilities between the date such costs were incurred and the date such fees are paid. By reason of the foregoing, the city council determines that there is a reasonable relationship between the amount of the street facility reimbursement fees provided for by this chapter and the cost of the street facilities for which the fees are assessed.

(Ord. No. 2013-08, §§ 1, 2)

Unless the contrary is stated or clearly appears from the context, the following definitions shall govern the construction of the words and phrases used in this chapter:

"Benefited property" or "benefited parcel" means a parcel of real property or any part thereof which adjoins a street which was constructed and installed by an initial developer and/or the city.

"Initial developer" means any person who is required to construct and install off-site street facilities which benefit other parcels of real property incident to or as a condition of the approval of a final map, final parcel map, certificate of compliance, or incident to or as a condition of the issuance of a building permit.

"Street facilities" means a public street constructed or installed within the city or any part thereof including, but not limited to, the street surfaces, street base, street sub-base, and all sidewalks, curbs, gutters, storm drains, street lights, street signs and other facilities necessary and appurtenant thereto.

"Street facilities costs" or "the cost of constructing and installing street facilities" means all direct costs usually incurred in the construction and installation of street facilities within the city including, but not limited to, costs incurred in designing such street facilities, the cost of all plan check fees and other fees incurred in securing city and other governmental approvals of the plans and specifications for the street facilities, and the cost of all labor, materials, equipment, contractors and/or subcontractors employed in

constructing and installing the street facilities, but excluding the cost of any land or interests in land acquired for or devoted to the street facilities.

(Ord. No. 2013-08, §§ 1, 2)

Any notice or other document required to be served on an owner of property pursuant to this chapter shall be deemed served when either personally delivered to such property owner or when deposited in the United States mail, certified and return receipt requested, addressed to the property owner at the property owner's address as it appears on the last equalized assessment roll or supplemental roll of the county, whichever is more current.

Service by mail of a notice or other document in the manner provided for in this section shall be effective on the date of mailing, and the failure of any person to actually receive such notice shall not affect the validity of the notice.

(Ord. No. 2013-08, §§ 1, 2)

The following street facility costs shall be subject to reimbursement in the manner hereinafter provided by this chapter:

A.

The costs incurred by an initial developer who is required to construct and install street facilities subsequent to March 1, 1997, incident to or as a condition of the approval of a subdivision map, parcel map or certificate of compliance for a minor land division, or incident to or as a condition of the issuance of a building permit, save and except for:

The cost of constructing and installing street facilities within the boundaries of the parcel being subdivided or improved pursuant to such subdivision map, parcel map, certificate of compliance or building permit;

The cost of constructing and installing street facilities within the half-street section of a public right-of-way immediately adjacent to the parcel being subdivided or improved pursuant to such subdivision map, parcel map, certificate of compliance or building permit;

The cost of constructing and installing temporary street facilities or the cost of maintenance work performed on existing street facilities; or

Any portion of the cost of constructing and installing street facilities in excess of the usual cost of constructing and installing local street facilities, as determined by the city council in the manner provided by this chapter.

B.

The cost incurred by the city for constructing and installing street facilities which were completed subsequent to March 1, 1997, save and except for:

The cost of constructing and installing street facilities which are exempted from the provisions of this chapter by resolution of the city council;

The cost of constructing and installing temporary street facilities or the cost of maintenance work performed on existing street facilities; or

Any portion of the cost of constructing and installing street facilities in excess of the cost of designing, constructing and installing local street facilities as determined by the city council in the manner provided by this chapter.

(Ord. No. 2013-08, §§ 1, 2)

The city council shall, by resolution, establish unit street facility costs to be used for the purpose of determining the amount of the street facility reimbursement to be paid to an initial developer and/or the city in the manner provided for by this chapter, as well as any street facility reimbursement fees to be assessed and levied on the owner of benefited property, also in the manner provided for by this chapter. Such unit costs shall be determined by the city council based entirely on the usual costs which would be incurred by the city on the date of the adoption of such resolution for the construction and installation of a local street, including all of the curbs, gutters, sidewalks, storm drains, street lights, street signs, and other facilities usually necessary and appurtenant thereto, when designed, constructed and installed in accordance with the design criteria and improvement standards adopted in land division standards and improvement standards of this code.

However, such unit costs shall not include or otherwise provide for costs which might be incurred in connection with the construction of a particular local street by reason of unusual topographical or geographical conditions incurred when grading the street right-of-way, streams and watercourses which must be spanned by bridges or culverts, and/or other unique conditions that might be encountered in the course of constructing and installing a particular local street.

(Ord. No. 2013-08, §§ 1, 2)

If on July 1 following the city council's adoption of a resolution establishing unit street facility costs in the manner provided by this chapter, or on July 1 of any year thereafter, there has been an increase in the usual costs of constructing and installing local streets within the Orland area, including all of the facilities usually necessary and appurtenant thereto, the city administrator, without any further action by the city council, shall increase the unit street facility costs adopted by resolution of the city council in an amount proportional thereto. The determination of whether there has been an increase in the cost of constructing and installing local street facilities and the amount of any increase in the unit street facility cost adopted by resolution of the city council which is proportional thereto, shall be made by the city administrator based on the net percentage increase in the Engineering News Record Cost Index for San Francisco (based on 1913 U.S. average = 100) as last published in the Engineering News Record/McGraw Hill Construction Weekly.

(Ord. No. 2013-08, §§ 1, 2)

Any initial developer desiring a reimbursement for street facility costs in the manner provided by this chapter shall file an application for such reimbursement with the city administrator within ninety (90) days following the date of acceptance for those street facilities constructed and installed by the initial developer which are completed and accepted by the city subsequent to the effective date of this chapter. Such application shall be accompanied by an application fee in an amount established by resolution of the city council based on the estimated cost of administering the provisions of this chapter, shall be in a form required by the city administrator and shall contain the following information and/or be accompanied by the following documents:

A.

The name, capacity and address of the initial developer;

B.

A description of the street facilities for which the initial developer seeks a reimbursement of costs;

C.

An itemized statement of the costs incurred by the initial developer in constructing and installing such street facilities prepared by and attested to by a certified public accountant;

D.

A legal description and assessor's parcel number for each parcel of real property, other than the developer's property, which adjoins the street facilities and by reason thereof is benefited by same;

E.

An engineered plat which depicts the street facilities and each benefited parcel;

F.

A statement setting forth the total length of the street facilities and the length of each benefited parcel; and

G.

Such additional information and documents as may reasonably be required by the city administrator.

(Ord. No. 2013-08, §§ 1, 2)

Where an initial developer has filed an application for reimbursement of street facility costs, the city administrator, based on the information provided in such application, shall prepare a proposed memorandum of reimbursable street facility costs and promptly transmit same to the city clerk. In such memorandum the city administrator shall set forth the following:

A.

The total cost subject to reimbursement as and for street facilities constructed and installed by the initial developer, either as set forth in the application filed by the initial developer or as calculated entirely from the unit street facility cost established by resolution of the city council, whichever is less;

B.

A legal description of each parcel, other than the initial developer's parcel, which adjoins such street facilities and by reason thereof, benefits from same;

C.

The total length of the street facilities, as well as the length of that portion of each benefited parcel which adjoins the street facilities;

D.

The street facility costs subject to reimbursement for each front foot of a benefited parcel adjoining the street facilities determined by dividing the total street facility costs subject to reimbursement by the front footage of all benefited parcels adjoining same;

E.

The total street facility costs subject to reimbursement for each particular benefited parcel adjoining the street facilities determined by multiplying the costs subject to reimbursement for each front foot of a benefited parcel by the total front footage of each particular benefited parcel;

F.

A statement sufficient to advise each owner of a benefited parcel:

That a street facility reimbursement fee may be assessed and levied against the owner of such benefited parcel as and for such parcel owner's fair share of the reimbursable street facility costs incurred by the city for constructing and installing the street facilities adjoining the parcel; and

That such street facility reimbursement fee will be in an amount equal to the total street facility costs subject to reimbursement for such person's particular benefited parcel, as set forth in the memorandum, adjusted for any increase in the cost of constructing and installing street facilities between the date such street facilities were completed and the date such fees are paid, as determined by the city administrator, based on the net percentage increase in the Engineering News Record Cost Index for San Francisco (based on 1913 U.S. Average = 100) published in the Engineering News Record/McGraw Hill Construction Weekly, all as hereinafter provided by this chapter; and

G.

If more than one of the benefited parcels is located within the unincorporated territory of the county, the additional statement that a street facility reimbursement fee may also be assessed and levied upon the owner of such parcel or parcels as and for such parcel or parcel's fair share of the reimbursable street facility costs incurred by the city in the amount set forth therein and adjusted for any increase in the cost of constructing and installing street facilities in the manner provided for therein if, at the time of approval of any additional development on the parcel or parcels, the parcel or parcels are annexed or annexing to the incorporated territory of the city and/or are connecting or being connected to the city sewer system, all as provided for by this chapter.

(Ord. No. 2013-08, §§ 1, 2)

A.

Upon receipt of a proposed memorandum of reimbursable street facility costs incurred by an initial developer, the city clerk shall schedule the memorandum for consideration by the city council at a public hearing at the first regular or adjourned regular meeting of the city council on the twentieth day after receipt of the memorandum.

B.

At least ten (10) days prior to the date of such hearing, the city administrator shall cause notice of the time, date and place of such hearing, as well as a copy of the proposed memorandum of reimbursable street facility costs to be served on the owner of each benefited property identified therein. In addition, at least ten (10) days prior to the date of the hearing the city administrator shall cause notice of the time, date and place of the hearing, as well as a brief statement of the subject of the hearing, to be posted along the street facility identified in the memorandum. Such notices shall be posted not more than three hundred (300) feet apart, but in no event shall less than three such notices be posted.

C.

At the time and place set for the hearing on the proposed memorandum of reimbursable street facility costs, the city council shall consider the report of the city administrator thereon and any protests thereto presented by the owner of a benefited property identified therein.

(Ord. No. 2013-08, §§ 1, 2)

If, after considering a proposed memorandum of reimbursable street facility costs incurred by an initial developer at a public hearing in the manner provided by this chapter, the city council determines that (1) the initial developer has incurred street facility costs subject to reimbursement; (2) that the total street facility costs subject to reimbursement set forth in such memorandum are equal to the initial developer's actual reimbursable costs as set forth in the application filed by the initial developer or as calculated entirely from the unit street facility costs established by resolution of the city council, whichever is less; (3) that each of the parcels described in the memorandum adjoins the street facilities constructed and installed by the initial developer and therefore is benefited by same; and (4) that the street facility costs subject to reimbursement for each front foot of a benefited parcel and the total street facility costs subject to reimbursement for each particular benefited parcel as set forth in the memorandum has been correctly calculated, the city council, by minute order, shall approve the memorandum together with any modifications thereto which it deems appropriate.

Following approval of the memorandum of reimbursable street facility costs, the city clerk shall endorse such memorandum with the number and date of the minute order approving same, and shall forward two certified copies of the memorandum to the city administrator. Upon receipt of such certified copies of the memorandum of reimbursable street facility costs, the city administrator shall cause one copy to be filed in the office of the building official and shall cause the other copy to be recorded in the official records of the county. Thereafter the building official shall cause an additional copy thereof to be included in the file, if any maintained by the building official for each benefited parcel.

(Ord. No. 2013-08, §§ 1, 2)

A.

Promptly following the approval of a memorandum of reimbursable street facility costs incurred by an initial developer in the manner provided by this chapter, the city administrator shall offer to enter into an agreement with the initial developer on behalf of the city undertaking to reimburse the initial developer for all or a portion of the reimbursable street facility costs set forth in such memorandum out of the revenues from the street facility reimbursement fees assessed and levied in the manner provided by this chapter. Such agreement shall set forth:

The total street facility costs subject to reimbursement as and for the street facilities constructed and installed by the initial developer;

A description of each parcel, other than the developer's parcel, which adjoins such street facilities and by reason thereof benefits from same;

The total length of such street facilities as well as the length of each individual benefited parcel;

The street facility costs subject to reimbursement for each foot of a benefited parcel fronting on the street facilities; and

The total street facility costs subject to reimbursement for each particular benefited parcel, all as provided for in the memorandum of reimbursable street facility costs approved by the city council.

B.

In addition, such agreement shall set forth the undertaking of the city to pay to the initial developer the revenues, if any, received by the city over the twenty-year period following the date of the agreement from the street facility fees assessed and levied upon the owner of a particular benefited parcel at the time and in the manner hereinafter provided by this chapter in an amount equal to the total street facility costs subject to reimbursement for such parcel, adjusted for any increase in the cost of constructing and installing street facilities between the date the street facilities were completed and the date such fees are paid, as determined by the city administrator based on the net percentage increase in the Engineering News Record Cost Index for San Francisco (based on 1913 U.S. Average = 100) published in the Engineering News Record/McGraw Hill Construction Weekly, all as provided for in the memorandum of reimbursable street facility costs approved by the city council. Following execution of the agreement, the original copy thereof shall be filed in the office of the building official who, thereafter shall cause a duplicate copy thereof to be included in the file, if any, maintained by the building official for each benefited parcel.

(Ord. No. 2013-08, §§ 1, 2)

Where the city has incurred reimbursable street facility costs incident to the construction of a public street, the city administrator, promptly following completion of such street, shall prepare a proposed memorandum of reimbursable street facility costs and transmit same to the city clerk. In such memorandum the city administrator shall set forth the following:

A.

The total cost subject to reimbursement as and for the street facilities constructed and installed by the city, either as determined by the city administrator from the actual cost incurred by the city in constructing and installing such street facilities, or as calculated entirely from the unit street facility costs established by resolution of the city council, whichever is less;

B.

A legal description of each parcel which adjoins such street facilities and by reason thereof benefits from same;

C.

The total length of that portion of each benefited parcel which adjoins the street facilities;

D.

The street facility costs subject to reimbursement for each front foot of a benefited parcel adjoining the street facilities determined by dividing the total street facility costs subject to reimbursement by the front footage of all benefited parcels adjoining same;

E.

The total street facility costs subject to reimbursement for each particular benefited parcel adjoining the street facilities determined by multiplying the costs subject to reimbursement for each front foot of a benefited parcel by the total front footage of each particular benefited parcel;

F.

The statement sufficient to advise each owner of a benefited parcel;

That a street facility reimbursement fee may be assessed and levied against the owner of such benefited parcel as and for such parcel owner's fair share of the reimbursable street facility costs incurred by the city for constructing and installing the street facilities adjoining the parcel; and

That such street facility reimbursement fee will be in an amount equal to the total street facility costs subject to reimbursement for such person's particular benefited parcel, as set forth in the memorandum, adjusted for any increase in the cost of constructing and installing street facilities between the date such street facilities were completed and the date such fees are paid, as determined by the city administrator, based on the net percentage increase in the Engineering News Record Cost Index for San Francisco (based on 1913 U.S. Average = 100) published in the Engineering News Record/McGraw Hill Construction Weekly, all as hereinafter provided by this chapter; and

G.

If more than one of the benefited parcels is located within the unincorporated territory of the county, the additional statement that a street facility reimbursement fee may also be assessed and levied upon the owner of such parcel or parcels as and for such parcel or parcel's fair share of the reimbursable street facility costs incurred by the city in the amount set forth therein and adjusted for any increase in the cost of constructing and installing street facilities in the manner provided for therein if, at the time of approval of any additional development on the parcel or parcels, the parcel or parcels are annexed or annexing to the incorporated territory of the city and/or are connecting or being connected to the city sewer system, all as provided for by this chapter.

(Ord. No. 2013-08, §§ 1, 2)

A.

Upon receipt of a proposed memorandum of reimbursable street facility costs incurred by the city, the city clerk shall schedule the memorandum for consideration by the city council at a public hearing at the first regular or adjourned regular meeting of the city council on the twentieth day after receipt of the memorandum.

B.

At least ten (10) days prior to the date of such hearing, the city administrator shall cause notice of the time, date and place of such hearing, as well as a copy of the proposed memorandum of reimbursable street facility costs to be served on the owner of each benefited property identified therein. In addition, at least ten (10) days prior to the date of the hearing the city administrator shall cause notice of the time, date and place of the hearing, as well as a brief statement of the subject of the hearing, to be posted along the street facility identified in the memorandum. Such notices shall be posted not more than three hundred (300) feet apart, but in no event shall less than three such notices be posted.

C.

At the time and place set for the hearing on the proposed memorandum of reimbursable street facility costs, the city council shall consider the report of the city administrator thereon and any protests thereto presented by the owner of a benefited property identified therein.

(Ord. No. 2013-08, §§ 1, 2)

If, after considering a proposed memorandum of reimbursable street facility costs incurred by the city at a public hearing in the manner provided by this chapter, the city council determines (1) that the city has incurred street facility costs subject to reimbursement; (2) that the total street facility costs subject to reimbursement set forth in such memorandum are equal to the actual reimbursable costs incurred by the city to construct and install the street facilities identified in the memorandum or as calculated entirely from the unit street facility costs established by resolution of the city council, whichever is less; (3) that each of the parcels described in the memorandum adjoins the street facilities constructed and installed by the city and therefore, is benefited by same; and (4) that the street facility costs subject to reimbursement for each front foot of a benefited parcel, as set forth in the memorandum, have been correctly calculated, the city council, by minute order, shall approve the memorandum together with any modifications thereto which it deems appropriate. Following approval of the memorandum of reimbursable street facility costs, the city clerk shall endorse such memorandum with the number and date of the minute order approving same, and shall forward two certified copies of the memorandum to the city administrator. Upon receipt of such certified copies of the memorandum of reimbursable street facility costs, the city administrator shall cause one copy to be filed in the office of the building official and shall cause the other copy to be recorded in the official records of the county. Thereafter the building official shall cause an additional copy thereof to be included in the file, if any, maintained by the building official for each benefited parcel.

(Ord. No. 2013-08, §§ 1, 2)

A street facility reimbursement fee is assessed and levied upon any owner of benefited property described in a memorandum of reimbursable street facility costs approved by the city council in the manner provided by this chapter as and for such property owner's share of the cost of the street facilities which adjoin and, therefore, are of benefit to such person's property at the time of the occurrence of any of the following events affecting the property:

A.

Approval of a final map, final parcel map or a certificate of compliance authorizing the subdivision of such property; or

B.

Issuance of a building permit authorizing construction of a building or other structure on such property.

(Ord. No. 2013-08, §§ 1, 2)

Any street facility reimbursement fee assessed and levied upon an owner of benefited property identified in a memorandum of reimbursable street facility costs approved by the city council in the manner provided by this chapter shall be in an amount equal to the total street facility costs subject to reimbursement for that particular parcel as set forth in such memorandum of reimbursable street facility costs, adjusted for the increase, if any, in the cost of constructing and installing street facilities between the date the street facilities were completed and the date such fee was paid, as determined by the city administrator, based on the net percentage increase in the Engineering News Record Cost Index for San Francisco (based on 1913 U.S. Average = 100) published in the Engineering News Record/McGraw Hill Construction Weekly, also as provided for in the memorandum of reimbursable street facility costs.

(Ord. No. 2013-08, §§ 1, 2)

Notwithstanding any provision of this chapter to the contrary, a street facility fee shall not be assessed and levied upon an owner of benefited property identified in a memorandum of reimbursable street facility costs approved by the city council in the manner provided by this chapter where a building permit is issued which authorizes the construction of a building or structure on such benefited property and the benefited property is part of a subdivision for which such fees were paid incident to approval of the final map, parcel map or certificate of compliance for such subdivision.

(Ord. No. 2013-08, §§ 1, 2)

Where a street facility reimbursement fee is assessed and levied pursuant to the provisions of this chapter upon an owner of property incident to the approval or issuance of a final map, final parcel map, certificate of compliance for a minor land division or building permit for such property, such fee will be due and

payable at the time of approval or issuance of such final map, final parcel map, certificate of compliance or building permit.

(Ord. No. 2013-08, §§ 1, 2)

A.

Revenues Received as Reimbursement for Street Facility Costs Incurred by Initial Developers. The revenues received by the city from street facility fees assessed and levied pursuant to a memorandum of reimbursable street facility costs approved by the city council in the manner provided by this chapter for street facility costs incurred by an initial developer shall be disbursed to such initial developer in accordance with the provisions of the reimbursement agreement executed by the city and such initial developer also in the manner provided by this chapter. Provided, however, that in the event the city receives revenues from street facility reimbursement fees assessed and levied pursuant to a memorandum of reimbursable street facility costs approved by the city council for an initial developer after expiration of the term of the reimbursement agreement between the city and such initial developer, such fees shall be deposited in a city local street facility fund and thereafter appropriated and used for the purpose of constructing, reconstructing or maintaining local streets with the city.

B.

Revenues Received as Reimbursement for Street Facility Costs Incurred by the City. All revenues received by the city from street facility reimbursement fees assessed and levied pursuant to a memorandum of reimbursable street facility costs approved by the city council in the manner provided by this chapter for street facility costs incurred by the city shall be deposited in a city local street facility fund and thereafter appropriated and used only for the purpose of constructing, reconstructing or improving local streets within the city.

(Ord. No. 2013-08, §§ 1, 2)

The street reimbursement fees assessed and levied pursuant to the provisions of this chapter shall be in addition to any street facility improvement fees assessed and levied pursuant to other chapters or sections of this code, as well as any street facility or other public improvement fees assessed and levied pursuant to any other ordinance or resolution adopted by the city council.

(Ord. No. 2013-08, §§ 1, 2)