Chapter 18.52

DEFERRING PAYMENT OF CITY FEES ON PROJECTS

Sections:

18.52.010 Definitions.

18.52.020 Procedure for deferring payment of city fees. 18.52.030 Deferral agreement.

The following definitions apply in this chapter:

• A. "City attorney" means the city attorney or designee. B. "City fee" means any of the following fees: 1. Railyards transportation fee (section 18.36.040.A.1). 2. Richards Boulevard transportation fee (section 18.36.040.A.1).

3. Railyards public facilities fee (section 18.36.040.A.2).

4. Richards Boulevard public facilities fee (section 18.36.040.A.3).

5. Jacinto Creek facilities fee (sections 18.28.050.A.1 and 18.28.110.B).

6. North Natomas public facilities fee (section 18.24.050.A.1). 7. North Natomas transit fee (section 18.24.050.A.2).

7. North Natomas public land acquisition fee (section 18.24.280.A).

8. North Natomas Regional Park land acquisition fee (section 18.24.280.B). 10. Park development impact fee (section 18.44.030.A). 11. Building excise tax (section 3.36.010). 12. Willowcreek fee (section 18.32.050.A.1). 13. Sewer development fee (section 13.08.480). 14. Combined sewer development fee (section 13.08.490). 15. Water system development fee (section 13.04.820). 16. Storm drainage development fee (section 13.10.125). 17. Mixed income housing fee (chapter 17.712). 18. Transportation development impact fee for citywide benefit district (chapter 18.48). 19. I-5 subregional corridor mitigation fee (Resolution No. 2016-0109). 20. Any fee adopted by the city council pursuant to chapter 18.56. C. "City manager" means the city manager or designee. D. "City treasurer" means the city treasurer or designee. E. "Deferral agreement" means an agreement that meets the criteria set forth in section 18.52.030. F. "Developer" means a person undertaking a project. G. "Program" means the program established by this chapter to defer payment of city fees.

• H. "Project" means any of the following:

1. A dwelling with five or more dwelling units and at least 50% of the building's square footage devoted to residential uses.

2. A commercial or industrial use with a project value totaling $1,000,000 or more, as determined by the chief building official in accordance with section 15.08.110.

3. A new or existing residential subdivision of five or more lots. (Ord. 2024-0017 § 75; Ord. 2023-0022 § 2; Ord.2018-0054 § 1; Ord. 2017-0017 § 1; Ord. 2008-052 § 2)

Notwithstanding any other provision of the Sacramento City Code, the city may defer payment of a city fee on a project in accordance with the following criteria and conditions:

A. Application. A developer who wishes to participate in the program must pay a filing fee in an amount established by resolution of the city council and submit an application to the city's community development department.

B. Approval. A developer of a project may participate in the program if the city manager approves the developer's application. The city manager shall not approve an application unless the following requirements are met:

1. The project is on a site within the city;

2. All payments of taxes and assessments on the project site are current;

3. The developer has all necessary land-use entitlements for the project;

4. The developer passes any risk assessment the city conducts to determine the developer's ability to pay all deferred city fees when due. At the city manager's discretion, the risk assessment may also cover the developer's affiliates. The risk assessment may include but is not limited to the following criteria:

• a. Neither the developer nor any of the developer's affiliates has had a foreclosure on any property during the four years preceding submission of the application;

• b. Neither the developer nor any of the developer's affiliates has had a bankruptcy filing in the four years preceding submission of the application;

• c. Neither the developer nor any of the developer's affiliates is subject to an outstanding civil judgment;

5. The city manager determines that deferral of city fees on the project will not endanger the public health, safety, or welfare;

6. The developer executes a deferral agreement that complies with section 18.52.030;

7. The developer has provided the city with evidence confirming to the city manager's satisfaction that the developer has satisfied all requirements for participation in the program. (Ord. 2017-0017 § 1; Ord. 2008-052 § 2)

A deferral agreement sets forth the conditions and provisions under which the city will defer payment of city fees as set forth in this section and shall be in a form approved by the city attorney. The city manager, without city council approval, may execute deferral agreements.

• A. Payment of deferred city fees. The developer shall pay all deferred city fees prior to the initiation of final inspection, prior to the expiration of the building permit for the project, or three years from the effective date of the deferral agreement, whichever occurs first. Any final inspection performed or certificate of occupancy issued prior to the payment of deferred city fees is void.

• B. Payment amount. The amount of deferred city fees to be paid is the amount of fees owed on the effective date of the deferral agreement.

• C. Late payment. If the developer does not pay the deferred city fees when due, the developer, in addition to paying the deferred city fees, shall pay a late fee equal to 10% of the deferred city fees.

• D. Collection expenses. If the developer does not pay the deferred city fees when due, the developer shall pay all expenses the city incurs to collect the fees, including but not limited to city staff time, third-party costs, and reasonable attorneys' fees and litigation costs, whether incurred for the city's staff attorneys or outside attorneys.

E. Prevailing wages. Depending on the circumstances, the developer's participation in the program may cause the developer's project to be a "public work" subject to the prevailing wage and apprenticeship requirements of the California Labor Code and chapter 3.60 of this code. The city makes no representation regarding the application of these laws to the project, and the developer should consult with the developer's own legal counsel on this issue before participating in the program.

• F. No third-party beneficiaries. Nothing in the deferral agreement is intended or shall be construed to give any person, other than the parties to the agreement, any legal or equitable right, remedy, or claim under the agreement.

• G. No assignments. The developer may not assign the deferral agreement or any of its rights, interests, or obligations under the agreement. (Ord. 2017-0017 § 1; Ord. 2008-052 § 2)