Redding Municipal Code Ch. 16.16 Supplemental Sizing and Improvements

As used in this chapter, the following words shall have the following meanings only:

"Improvement" means a sewer line, water line, curb, gutter, street section, drain line, or any other physical improvement required by the City of Redding as a condition of development of the subdivider's or land developer's real property.

"Land developer" means a person, firm, corporation, partnership, or association who proposes to develop one or more parcels of real property for himself or herself or for others when such development requires a discretionary permit or permission to be approved by the City of Redding or requires the extension of city streets or utilities to serve the site of the development.

"Subdivider" means a person, firm, corporation, partnership, or association who proposes to divide, divides, or causes to be divided real property into a subdivision for himself or herself or for others.

(Ord. 2346 § 1 (part), 2005)

The purpose of this chapter is to provide a means for the reimbursement of costs for the construction of off-site improvements by a subdivider or land developer which are needed to ensure the current and future development of property within the City of Redding in a logical and orderly fashion as set forth in the general plan and related infrastructure master plans and where such improvements may be of benefit to other properties.

(Ord. 2346 § 1 (part), 2005)

Improvements to be installed by the subdivider or land developer of any parcel or parcels of property for the benefit of the subdivision or parcel(s) to be developed shall contain supplemental size, capacity, number, and length for the benefit of property not within the subdivision or parcel(s) to be developed as determined to be necessary by the city engineer or applicable utilities master plan. Such improvements shall be dedicated to the public.

(Ord. 2346 § 1 (part), 2005)

When a subdivider or land developer is required to provide supplemental size, capacity, number, or length in excess of the construction required for the subdivision or parcel(s) to be developed, for the benefit of property not within the subdivision or parcel(s) to be developed, under the provisions of this chapter, the city shall, upon recommendation of the city engineer and approval of the city council, enter into an agreement with the subdivider or land developer to reimburse the subdivider or land developer for that portion of the cost of such improvements equal to the difference between the amount it would have cost the subdivider or land developer to install such improvements to serve the subdivision or parcel(s) to be developed only and the actual cost of such improvements. Costs eligible for reimbursement include, but are not limited to, the cost for acquisition of right-of-way or easements, environmental mitigation, design and construction management, road improvements, pedestrian improvements and drainage, sewer, water and electrical improvements. The agreement may, but shall not necessarily, provide for payment to the subdivider or developer of an amount attributable to interest. At a minimum, the reimbursement agreement shall contain the provisions specified in this chapter.

(Ord. 2346 § 1 (part), 2005)

The reimbursement agreement shall include the following terms and conditions:

A. The city shall be obligated to make reimbursements to subdivider or land developer only when the city obtains funds from benefitting property owners when such benefitting property owners eventually improve their property.

B. Reimbursements by a benefitting property owner to the city shall be made upon the recordation of a subdivision or parcel map or when a building permit is issued, whichever occurs first, for the construction of buildings or improvements on parcels benefitting from the improvements except as set forth in Section 16.16.100 (Exceptions) of this chapter.

C. Any funds paid by benefitting property owners to the city need not be paid over to the subdivider or land developer until the limitations period for instituting court action to seek a refund of such funds paid under protests has passed and no court action has been instituted. In the event court action is instituted, the city shall not pay over such funds to the subdivider or land developer until the court action has been finalized and the authority of the city to collect such charges has been sustained.

D. The city shall have the right to turn over the defense of any action seeking refund of amounts paid under protest to the subdivider or land developer. If the subdivider or land developer fails to undertake the defense of the action at subdivider's own expense, the city may stipulate to return of the funds so paid under protest by or on behalf of the owner or owners of any such benefitting property, and the city shall not be further obligated to subdivider or land developer as to any such funds so refunded. In the event a court action is maintained to prevent the city from collecting such funds from benefitting property owners, the city shall have the right to turn over the defense of that action to the subdivider or land developer, who shall agree to hold the city harmless from any and all liability thereunder. In the event the subdivider or land developer fails to undertake defense of the action at subdivider's or land developer's sole expense, the city may stipulate to cease collecting such funds or enter into any other settlement of the litigation acceptable to the city, and subdivider or land developer shall lose any right to such funds under the reimbursement agreement.

E. The reimbursement agreement shall provide for reimbursement of all funds when and as collected, without interest, unless the city council otherwise determines. Under no circumstances shall the city be deemed liable for any funds not so collected from benefitting property owners, nor shall the city be obligated to commence litigation to recoup funds not collected from benefitting property owners.

F. The reimbursement agreement shall incorporate by reference the report of the city engineer required by Section 16.16.060 of this chapter.

G. The reimbursement agreement shall include a provision to compensate the City of Redding in an appropriate amount, not less than five nor more than ten percent of the fees from property owners benefitting from the construction of the improvements and not within the subdivision or parcel(s) to be developed, for administration of the reimbursement agreement. The amounts due to the city for administration of the reimbursement agreement shall be retained by the city and deducted from the amount due to the subdivider or land developer prior to disbursement of the fees to the subdivider or land developer.

H. The term of the reimbursement agreement shall not exceed twenty years from the date such agreement is last signed by the city and the subdivider or the land developer.

(Ord. 2346 § 1 (part), 2005)

In order to pay the costs provided for in the reimbursement agreement, the city may:

A. Collect from other persons a reasonable charge for construction of oversized facilities, using such improvements for the benefit of real property not within the subdivision or parcel(s) to be developed. Collection of these charges may be deferred until such time as the other persons, using such improvements, improve their property through construction or through subdivision.

B. Establish and maintain local benefit districts for the levy and collection of such charges or costs from the property benefitted.

(Ord. 2346 § 1 (part), 2005)

Prior to entering into a reimbursement agreement pursuant to this chapter, the city council shall receive a report from the city engineer, describing in detail the area outside the subdivision or parcel(s) to be developed which is benefitted by the supplemental sizing, capacity, number, or length of improvements required, and recommending the apportionment of the costs of such improvements based upon the benefit to such property outside the subdivision or parcel(s) to be developed and to the parcel or subdivision to be developed. The apportionment of benefit shall be on the basis of frontage upon such improvements, acreage served by such improvements, density, or any other formula rationally related to actual benefit. The report shall use actual costs to assign benefit and shall inflate the benefit at three percent per year until the end of the term of the agreement to reflect the increase in value of the benefit and loss of use of funds by the party making the improvement. The city council may approve the report as submitted or modify the report, and the action of the city council thereon shall determine the benefit to each piece or parcel of property outside the subdivision or single parcel to be developed and benefitted by such improvements, establish the amount or amounts to be charged such properties, and direct the method of collection of the costs of such improvements. The action of the city council shall be final.

(Ord. 2346 § 1 (part), 2005)

In determining the benefit and obligation to each piece or parcel of property which benefits from the improvement, the city council shall, unless consent of all affected property owners is filed with the city, hold a public hearing thereon and give notice by mail to property owners of record who would be affected by such determination and provide to all such property owners an opportunity to appear and be heard upon the proposed determination of benefit and method of apportioning of costs thereof. Notices shall be sent to affected property owners of record as shown on the last equalized assessment roll at least fifteen calendar days prior to the hearing.

(Ord. 2346 § 1 (part), 2005)

The reimbursement agreement and any extensions may be recorded.

(Ord. 2346 § 1 (part), 2005)

Each owner of a parcel not within the subdivision or parcel(s) to be developed by the subdivider or land developer, which is identified in the report of the city engineer as having received a benefit from the construction of the improvements, shall pay the required fee prior to issuance of a building permit or other approval allowing development of the property or prior to other beneficial use of the improvement except as set forth in Section 16.16.100 (Exceptions) of this chapter.

(Ord. 2346 § 1 (part), 2005)

The provisions of this chapter shall not apply in the following circumstances:

A. The construction of accessory buildings, such as residential garages, or similar improvements which do not exceed the values as set forth in subsection C of this section;

B. The construction of accessory structures, such as swimming pools or patio decks;

C. The remodel or alteration of any building where the cost of such work does not exceed twenty percent of the value of such building as determined by data provided by the Shasta County assessor or, if such data is not current, other valuation data determined appropriate by the building official;

D. The enlargement or expansion of any building by twenty percent or less in floor area;

E. Construction of buildings or improvements as part of a development subject to a development agreement where such agreement establishes the funding obligation for public facilities or improvements required of the project;

F. The restoration or repair of a building damaged or destroyed by fire, explosion, earthquake, flood, or other casualty or act of God, or by the public enemy, provided that a building permit to rebuild the structure is obtained within six months and the use or occupancy of such building thereafter continues in the same manner as lawfully existed prior to such damage or destruction.

(Ord. 2346 § 1 (part), 2005)