Petaluma Municipal Code Ch. 19.28 Water Capacity Fee

In order to implement the goals and objectives of the Petaluma general plan, and to mitigate the impacts caused

by future development in the city, certain public facilities must be constructed. The city council has determined

that in addition to the water connection and service charges required pursuant to Chapter 15.08, a water capacity

fee is needed in order to Gnance public facilities required to provide water service for new development in the city

and to provide for payment of each development’s fair share of the construction and acquisition costs of such

improvements needed to serve such new development. In establishing the water capacity fee described in the

following sections, the city council has found the fee to be consistent with its general plan, and pursuant to

Government Code Section 65913.2, has considered the eIects of the fee with respect to the city’s housing needs

as established in the housing element of the general plan. (Ord. 2444 NCS §6, 2012.)

A. A water capacity fee ("water capacity fee") is established pursuant to California Government Code Section

66013 to pay for publicly owned water facilities in the city. Pursuant to Government Code Section 66013, the water

capacity fee is not a development impact fee. In accordance with subdivision (h) of Government Code Section

66013, the water capacity fee is not subject to the provisions of the Mitigation Fee Act except as speciGed in that

section and subdivision.

B. The city council shall, in a city council resolution adopted after a duly noticed public meeting, set forth the

amount of the water capacity fee, describe the beneGt and impact area on which the water capacity fee is

imposed, list the water facilities improvements to be Gnanced, describe the estimated cost of these facilities

improvements, describe the reasonable relationship between the use of the water capacity fee and the need for

the public facilities improvements and the types of future development projects on which the water capacity fee is

imposed, and set forth time for payment.

(Ord. 2444 NCS §6, 2012.)

The revenues raised by payment of the water capacity fee shall be accounted for in a capital project fund.

Separate and special accounts within the fund shall be used to account for revenues, along with any interest

earnings on such account. These monies shall be used for the following purposes:

A. To pay for property acquisition, including right-of-way acquisition, design, engineering, construction and

acquisition of the public facilities designated in the fee resolution and reasonable costs of outside consultant

studies related thereto;

B. To reimburse the city for designated public facilities constructed by the city with funds (other than gifts or

grants) from other sources together with accrued interest; and

C. To reimburse the city for its costs incurred in establishing, updating, administering and maintaining the water

capacity fee in accordance with Government Code Section 66013, this chapter, and other applicable law.

(Ord. 2444 NCS §6, 2012.)

If a developer is required, as a condition of approval of a permit or other entitlement, to construct a public facility

that has been designated to be Gnanced with water capacity fees, a credit against the fee otherwise established by

this chapter concerning the development project for the developer’s actual cost of constructing the public facility

in an amount not to exceed the cost of such public facilities as estimated by the city in adopting the fee shall be

oIered by the city and, if the fee is less than such amount, the developer shall be entitled to reimbursement.

Reimbursement shall be from water capacity fee revenues only. (Ord. 2444 NCS §6, 2012.)

The city council may, by resolution, adopt administrative guidelines to provide procedures for calculation, payment

and other administrative aspects of the water capacity fee. (Ord. 2444 NCS §6, 2012.)