Chapter 3.40 — DEVELOPMENT IMPACT FEES

The town council finds and declares as follows:

A.

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

B.

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

C.

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

D.

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

E.

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

F.

Management Services Institute has developed a study dated January, 1992, entitled "Development Impact Fee and Master Facility Plan for the Town of Paradise," ("MSI study") in which the nexus between new development projects and the need for additional streets, traffic signals, drainage and police and safety improvements and services is set forth.

G.

The development impact fees established by this chapter are based upon the MSI study as it relates to the financial cost to the town for new public facilities and other capital acquisition costs required, incrementally, as a direct result of new development within the town.

H.

The fees established by this chapter do not exceed the reasonable cost of providing public facilities required by development projects within the town under the MSI study as modified by the town council.

I.

The fees established by this chapter relate rationally to the reasonable cost of providing such public facilities required by development projects within the town, which public facilities are consistent with the general plan and the various elements of the general plan of the town.

J.

The public facilities and anticipated future development herein referenced are based upon an analysis of existing land use and zoning.

K.

The fees established by this chapter are consistent with the goals and objective of the town's general plan and are designed to mitigate the impacts caused by new development throughout the town. Development

impact fees are necessary in order to finance the required public facilities and to pay for new development's fair share of construction costs for the public facilities.

L.

The imposition of fees to finance public facilities and service improvements is necessary in order to protect the public health, safety and welfare. (Ord. 240 §1 (part), 1994)

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

"Development permit" means any permit issued by the town authorizing the construction, relocation, and/or establishment of a "development project" as defined in this section.

"Development project" means any project undertaken for the purpose of development. Development project shall include a project involving the issuance of a permit for construction or reconstruction, remodeling, addition or any work requiring any permit under the ordinances of the town, as the same presently exist or may be amended from time to time hereafter. The term development project shall also include permits for erection of manufactured housing or structures, and structures moved into the town.

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

"Public facilities" include public improvements, public services and community amenities. (Ord. 300 §§1, 2, 1998; Ord. 240 §1 (part), 1994)

by resolution.

A.

The Management Services Institute Study dated January, 1992 ("MSI study") for the town as modified by the council is adopted.

B.

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

Streets and Thoroughfares. A development impact fee is established for streets and thoroughfares;

Traffic Control Facilities. A development impact fee is established for traffic control facilities (signals);

Law Enforcement Facilities, Equipment and Training. A development impact fee is established for law enforcement facilities, equipment and training;

Fire Facilities, Equipment and Training. A development impact fee is established for fire facilities, equipment and training;

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

C.

The town council shall, by resolution, set forth the specific amount of the fees, describe the benefit and impact area on which the fees are imposed, list the specific public improvements to be financed and describe the estimated cost of these facilities based upon the MSI study as modified. (Ord. 300 §3, 1998; Ord. 240 §1 (part), 1994)

A.

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

B.

No permits or extension of permits for the activities referenced in subsection A of this section shall be granted unless and until the appropriate development impact fees required have been paid to the town. (Ord. 300 §4, 1998; Ord. 240 §1 (part), 1994)

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

A.

A streets, thoroughfares and interchanges fund is established. The fund is a fund for the deposit of fees collected for, and the payment of, the actual or estimated costs of the design, upgrading or improvement of the streets, thoroughfares and interchanges, including any required acquisition of land.

B.

A traffic control (signals) fund is established. The fund is a fund for the deposit of fees collected for, and the payment of, the actual or estimated costs of the design, upgrading or improvement of the traffic facilities, including any required acquisition of land.

C.

A police and safety facilities and equipment fund is established. The law enforcement facilities and equipment fund is a fund for the deposit of fees collected for, and the payment of, the actual or estimated costs of law enforcement facilities, equipment or training, including any required acquisition of land.

D.

A fire facilities, equipment and training fund is established. The fire facilities, equipment and training fund is a fund for the deposit of fees collected for, and the payment of, the actual or estimated costs of fire facilities, equipment or training, including any required acquisition of land.

E.

A drainage facilities fund is established. The drainage facilities fund is a fund for the deposit of fees collected for, and the payment of, the actual or estimated costs of designing, constructing and improving the drainage facilities within the town, including any required acquisition of land. (Ord. 240 §1 (part), 1994)

All fees due under this chapter shall be determined and calculated by the community development director of the town or his or her duly authorized designee in accordance with the resolution adopting the fees. In the event that an alternative revenue source to mitigate development impact fees is approved and adopted by either the town council or the voters of the town, then the resolution adopting the fees shall be modified or eliminated to reflect the amount of the revenues being received from the alternative revenue source. (Ord. 244 §1, 1995; Ord. 240 §1 (part), 1994)

The fees established pursuant to this chapter shall be paid for the property on which a development project is proposed at the time of the issuance of any required development permit or in accordance with the terms of a mitigation or installment payment agreement approved by the town manager, except as otherwise provided below; provided, however, that fees imposed on residential development shall be collected in accordance with the provisions of California Government Code Section 66007, as the same presently exists or may hereafter be amended from time to time. (Ord. 300 §5, 1998: Ord. 244 §2, 1995: Ord. 240 §1 (part), 1994)

A.

A developer of any project subject to the fees described in this chapter may apply for a reduction, adjustment or waiver of any one (1) or more of the fees, based upon the absence of any reasonable relationship or nexus between the impacts of their development and either the amount of the fee(s) charged or the type of facilities to be financed.

B.

The application shall be submitted to and acted upon by the community development director.

C.

The application shall be made in writing and filed with the office of the town community development department together with a minimum nonrefundable application fee established by resolution of the town council, and shall be filed not later than ten (10) days after imposition and payment of the fees for the development project or at the time of imposition of such fees prior to the issuance of the development permit.

D.

The application shall state in detail the factual basis for the claim of waiver, reduction or adjustment of the fee(s).

E.

The Community Development Director shall consider and act on the application during a public meeting conducted within a time period not exceeding thirty (30) days after the filing of the fee adjustment application. The meeting shall be noticed by public posting of an agenda and conducted in a manner as prescribed by the Ralph M. Brown Act or other applicable laws of the town for public meetings on development permits.

F.

If a reduction, adjustment or waiver of the fee(s) is granted, any change in use or scope of the project shall invalidate the waiver, adjustment or reduction of the fee if such change in use would render the same inappropriate. In addition, the town shall not pay any interest on prior development impact fees paid by an applicant that are later reduced, adjusted or waived by action of the town council.

G.

Determinations on fee adjustment applications made by the community development director pursuant to the provisions of this section may be appealed to the town council by filing a written request with the town clerk within seven (7) calendar days of fee adjustment application determination, together with a minimum nonrefundable fee amount established by resolution of the town council.

H.

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

(Ord. No. 538, § 1, 3-11-2014; Ord. 300 §§ 6, 7, 1998; Ord. 272 §1, 1996: Ord. 240 §1 (part), 1994)

A.

Funds collected from development impact fees shall be used for the purpose of paying:

The actual or estimated costs of constructing and/or improving the public facilities within the town to which the specific fee or fees relate, including any required acquisition of land or right-of-way therefor;

Reimbursing the town for the development's share of those public facilities already constructed by the town or to reimburse the town for costs advanced, including, without limitation, administrative costs incurred with respect to a specific public facilities project; or

To reimburse other developers who have constructed public facilities described in the resolution adopted pursuant to Section 3.40.020 of this chapter, where those facilities were beyond that needed to mitigate the impact of the developer's project or projects.

B.

In the event that bonds or similar debt instruments are issued for advanced provision of public facilities for which development impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities provided are of the type to which the fees involved relate.

C.

Funds collected in the Southside Study Area, Westside Area and in each of the drainage basins prior to the adoption of the ordinance codified in this chapter shall remain in their current funds and can only be expended for projects within the areas from which they were collected.

D.

Funds may be used to provide refunds as described in this chapter.

E.

No funds shall be used for periodic or routine maintenance.

F.

The town shall be entitled to retain not more than three percent of the funds collected as compensation for the expense of collecting the fee and administering this chapter.

G.

Each fiscal year, the town manager or his duly authorized designee, shall present to the town council a proposed five-year capital improvement program for the various public facilities referenced in the resolution adopted pursuant to Section 3.40.020 of this chapter assigning moneys (including any accrued interest) from the funds to specific improvement projects and related expenses. Moneys, including any accrued interest, not assigned in any fiscal year shall be retained in the same fund until the next fiscal year except as provided by the refund provisions of Section 3.40.090 of this chapter.

H.

The town shall be entitled to make loans of funds collected from one fund to another; provided, that the loans are properly recorded in the records of the department of administrative services and repaid with interest equal to the interest earned by the town on its funds invested with the local agency investment fund (LAIF) through the state of California. (Ord. 240 §1(part), 1994)

A.

If a development permit expires without commencement of construction and the development impact fees collected therefor have not been committed to a project, then the fee payer shall be entitled to a refund, without interest, of the impact fee paid as a condition for its issuance, except that the town shall retain one percent of the fee to offset a portion of the costs of collection and refund. The fee payer must submit an application for such a refund to the town manager. Failure to timely submit, within six months, the required application for refund shall constitute a waiver of any right to refund.

B.

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

C.

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

D.

The provisions of California Government Code Section 66001(d), (e) and (f) shall apply fully to any refund of fees remaining unexpended or uncommitted in any such town fund for five or more years after deposit, and

the provisions of subsections B and C of this section shall be subordinate to this subsection and shall be applied consistent therewith. (Ord. 300 §§ 8, 9, 1998; Ord. 240 §1 (part), 1994)

Each of the following permit applications shall be exempted from payment of some or all of the development impact fees of this chapter:

A.

Alterations or renovations of an existing building or structure where no additional dwelling units are created; or where the occupancy use is not changed; or where the impacts of the work covered by the permit will not result in additional impacts upon the town's public facilities or public services as determined by the community development director;

B.

The replacement of a destroyed or partially destroyed or damaged building or structure with a new building or structure where no additional dwelling units are created; where the occupancy use is not changed; or where the impacts of the work covered by the permit will not result in additional impacts upon the town's public facilities or public services;

C.

Building permit applications for authorization to construct; open residential decks and deck or patio covers, gazebos, retaining walls and fences, sign structures, detached buildings or structures of less than one hundred twenty square feet in areal size, and all shade or partial shade roof structures that do not include solid roof coverings and that allow through passage of precipitation;

D.

Exemption from the imposition of development impact fees for development projects subject to issuance of a town development permit to other local governmental entities shall be administered in accordance with formally adopted "memorandums of understanding" executed between the town and the affected local governmental entity (ex. PID, PRPD, PUSD, etc.);

E.

Any development project proposed to be established within a geographic location identified as a "no fee area" upon the drainage basin maps of the Master Storm Drainage Study and Facilities Plan 1980, Paradise, California, as adopted and subsequently amended by the town council, shall be exempt from the imposition of storm drainage facilities development impact fee only. (Ord. 356 §2, 2001; Ord. 300 §§ 10, 11, 1998; Ord. 272 §2, 1996; Ord. 252 §1, 1995; Ord. 240 §1(part), 1994)

A.

If a developer/applicant or his predecessor has previously been charged fees by the town for development impacts under another town ordinance or resolution for the same development covered by this chapter, the developer/applicant will be provided credits for such prior fees.

B.

New development that, through demolition or conversion, will eliminate existing development is entitled to a fee credit, based on current or last usage of the site, if the existing development is a lawful use under the zoning ordinance, including a legal nonconforming use.

C.

New development that will replace development that was partially or totally destroyed by fire, flood, earthquake, mudslide, or other casualty or act of God within the preceding five-year period, is entitled to a fee credit if the development that was partially or totally destroyed was a lawful use under the zoning ordinance, including a nonconforming use, at the time thereof.

D.

Credit for such eliminated development or development that was partially or totally destroyed (as above specified) shall be calculated by the community development director in accordance with the fee schedule set forth in the resolution adopted pursuant to Section 3.40.020 of this chapter and shall be applied to new development on the same site. (Ord. 244 §3, 1995: Ord. 240 §1 (part), 1994)

A.

In-Lieu Fee Credits for Construction of Improvements.

A developer that has been required by the town to construct any facilities or improvements (or a portion thereof) described in the resolution adopted pursuant to Section 3.40.020 of this chapter as a condition of approval of a development permit may request an in-lieu credit of the specific development impact fee(s) involved for the same development. Upon request, an in-lieu credit of fees may be granted for facilities or improvements that mitigate all or a portion of the need therefore that is attributable to and reasonably related to the given development.

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

Fees required under this chapter shall be reduced by the actual construction costs of the facilities or improvements that relate to the fees, as demonstrated by the developer/applicant and reviewed and

approved by the community development director, all consistent with the provision of subsections (A)(1) and (2) of this section. If the costs of the facilities or improvements are greater than required relevant fees, this chapter does not create an obligation on the town to pay the developer/applicant the excess amount.

An amount of in-lieu credit that is greater than the specific fee(s) required under this chapter may be reserved and credited toward the fee of any subsequent phases of the same development, if determined appropriate by the community development director.

Credits shall be calculated by the community development director in accordance with the fee schedule set forth in the resolution adopted pursuant to Section 3.40.020 of this chapter.

B.

Site-Related Improvements. Credit shall not be given for site-related improvements, including, but not limited to, traffic signals, right-of-way dedications, or providing paved access to the property, which are specifically required by the project in order to serve it and do not constitute facilities or improvements specified in the resolution referenced in Section 3.40.30 of this chapter.

C.

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

D.

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

E.

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

F.

Appeal of Determinations of Community Development Director. Determinations made by the community development director pursuant to the provisions of this section may be appealed to the town council by filing a written request with the town manager, together with a fee established by resolution of the town

council, within ten calendar days of the determination of the community development director. (Ord. 240 §1(part), 1994)

A.

Except for the first year the ordinance codified in this chapter, no later than six months following the end of each fiscal year, the town manager or his/her designee shall prepare a report for the town council identifying the balance of fees in the various funds established pursuant to Section 3.40.020 of this chapter, the facilities constructed, and the facilities to be constructed. In preparing the report, the town manager shall adjust the estimated costs of the public facilities in accordance with this chapter.

B.

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

C.

The report prepared by the town manager and its review by the town council, as well as any findings thereon, shall be subject to the provisions of California Government Code Section 66001 (d), to the extent applicable (which shall be controlling in the event of any conflict). (Ord. 240 §1(part), 1994)

The provisions of this chapter and any resolution adopted pursuant hereto, shall at all times be subject and subordinate to the provisions of Chapter 5 (commencing with Section 66000), Division 1, of Title 7 of the California Government Code, as the same presently exists or may hereafter be amended from time to time, to the extent the same are applicable. In the event of any conflict between the provisions of this chapter and the state law, the latter shall control. (Ord. 240 §1(part), 1994)

The provisions of this chapter and any resolution adopted pursuant hereto, shall supersede any previous ordinance or resolution to the extent the same is in conflict herewith. (Ord. 240 §1(part), 1994)