Article I — Common Administrative Provisions

A. This chapter is adopted under the general powers reserved to the city by the city charter. Its purpose is to authorize certain development impact fees, as described in various finance plans or nexus studies, to be imposed upon development projects to provide some or all of the funds required to design, construct, install, and acquire public infrastructure, or to utilize capacity within existing infrastructure, that meets the needs of the projected development and addresses its impacts. This article sets out provisions that are common to each development impact fee, except as otherwise provided in subsequent articles specific to each fee.

B. This chapter is intended to:

1. Protect and promote the public health, safety, and welfare by constructing, installing, and acquiring the public infrastructure necessitated by development; and

2. Allow development on the condition that the persons that undertake development projects pay the costs of the public infrastructure so that those costs do not become a responsibility of the city. (Ord. 2017-0010 § 1)

The following definitions apply in this chapter:

"Ancillary use" means a use that is supportive of the primary activities or operations of a primary use, which would not exist absent the primary use.

• "City manager" means city manager or designee.

• "Commercial building area" means the gross area of a building or structure with designated uses other than a residential use.

• "Conditioned area" means the area in a dwelling unit that is either directly or indirectly provided with heat in compliance with the California Building Code.

• "Development" has the same meaning as defined in chapter 17.108.

• "Development credit" means a credit against fees as compensation for landowner construction or funding of infrastructure, provided in individual finance plans or nexus studies adopted pursuant to this chapter.

• "Development project" means any project undertaken for the purpose of development but does not include projects undertaken by or for public agencies, including public schools and public parks.

"Dwelling unit" has the same meaning as defined in chapter 17.108.

• "Existing building or structure" means a building or structure in existence at the time of imposition of the fee or a building or structure demolished not more than three years prior to the imposition of a fee. "Fee" means a monetary exaction established, imposed, and collected under this chapter to finance the design, construction, installation, and acquisition of public infrastructure or to recover the costs of capacity in existing public infrastructure. "Finance plan" means a written plan approved by resolution of the city council that establishes the strategy for financing the infrastructure required to serve a development project and that includes a nexus study as a separate or incorporated report. "Finance plan area" means the geographical area that is identified in, and is subject to, a finance plan or preparation of an area for future development. "Infrastructure" means the public facilities and public improvements as eligible for financing with fees. "Infrastructure fund" means a fund established as required by the Mitigation Fee Act or any other fund established in this chapter to hold fees collected and any interest earned on the fees. When an infrastructure fund is established under this chapter, it shall, as applicable, be deemed a continuation of any previously established similar fund. "Mitigation Fee Act" means chapter 5 (sections 66000 through 66025) of division 1 in title 7 of the California Government Code. "Nexus study" means a report that satisfies the requirements of CaliforniaGovernment Code section 66001(a). The nexus study may be a stand-alone report or incorporated as part of a finance plan. "Primary use" means the principal functions of a building or structure. "Recordable map" means a map that has satisfied all the requirements for recordation with the county recorder except for payment of fees. "Residential building area" means the conditioned areas within a dwelling unit. (Ord. 2017-0010 § 1) 18.56.115 Proceedings to set the initial amount of a fee and to increase a fee. A. Public hearing. Before adopting a resolution establishing the initial amount of a fee or increasing a fee, the city council shall hold a public hearing in the manner required by California Government Code sections 66016, 66017, or 66018. B. Findings. The city council shall make the following findings when it adopts a resolution establishing the initial amount or increase of a fee: 1. A finding that the amount has been determined and calculated in a manner consistent with Mitigation Fee Act and any applicable finance plan. 2. Findings addressing the matters set forth in subdivisions (a) and (b) of California Government Code section 66001. C. Effective date. Unless otherwise provided in this chapter, the effective date of a resolution that establishes the initial amount or increase of a fee is to be determined in accordance with California Government Code section 66017. (Ord. 2017-0010 § 1) 18.56.120 Automatic annual adjustment of fees. Notwithstanding section 18.56.115, the city council may specify, by resolution, a method for the automatic annual adjustment of fee amounts. (Ord. 2017-0010 § 1) 18.56.125 Imposition of fees. A. The city may impose fees consistent with subsequent articles in this chapter. B. Reduction of fees. 1. Offset: buildings or structures. Except as provided under subsection C, for a change of use of an existing building or structure or for replacement of an existing building or structure, the amount that would otherwise be paid on an existing use will be an offset against the fee for the change in use. An offset that exceeds the fee for the change in use or replacement results in a fee of zero. 2. Fees previously paid. The amount of a paid fee for which the right to a refund is waived as provided for under section 18.56.135.F and for which no refund is provided under section 18.56.140 will be a credit toward the subsequent imposition of that fee on a development project on the same property: a. The city, in its sole discretion, determines the fee was previously paid, determines the amount of the fee previously paid, and determines the amount not refunded. b. The applicant is responsible to pay the fee in excess of the credit at the time of the payment of fees under 18.56.135.

l be a credit toward the subsequent imposition of that fee on a development project on the same property: a. The city, in its sole discretion, determines the fee was previously paid, determines the amount of the fee previously paid, and determines the amount not refunded. b. The applicant is responsible to pay the fee in excess of the credit at the time of the payment of fees under 18.56.135.

• c. If the property on which the fee was previously paid is subsequently divided or subdivided in any way, the amount of the credit will be allocated pro rata to the resulting parcels as determined by the city in its sole discretion. Only the amount of a fee allocated to a parcel will be available as a credit to reduce the fees subsequently imposed on a development project on that parcel. 3. Development credits. Any claim for the use of development credits must be made by the time of imposition of the fees under 18.56.135. Any claim not made by that time is deemed waived. Development credits cannot be provided for infrastructure funded by grants. C. Except as provided in any subsequent article, the following activities are exempt from the fees established under this chapter: 1. Alteration, renovation, or expansion of an existing residential structure if no additional dwelling units are created and the use is not changed. 2. Replacement or repair of a structure or building that is destroyed or damaged within the last three years, provided the new or repaired structure or building is of the same size or less and same use. 3. Alteration or renovation, but not expansion, of a structure or building that is designated under chapter 17.604 as a landmark or contributing resource on the Sacramento Register. D. Exemptions under subsection C shall be determined by the city manager no later than the time the applicant files the first building permit application necessary for a development project. E. Date of imposition; notice. The fees described in subsection A, including any reduction pursuant to subsection B, are deemed "imposed" for purposes of the Mitigation Fee Act when the city manager gives the applicant or subdivider a written notice that does both of the following: 1. States the amount of the fees as final; and 2. Explains that the applicant or subdivider may protest the fees in accordance with section 18.56.155. The notice must include the full text of that section. F. Fees imposed on building permits are the fees in effect as of the date of acceptance of a complete building permit application. Fees imposed on maps are fees in effect as of the date of the submittal of the recordable map (which includes final map, parcel map, master parcel map or first phased final map, or certificate of compliance) as determined by the city manager. G. Except as otherwise expressly provided, the city shall not issue building permits and shall not record any map described in subsection A unless and until the fees required by this chapter have been paid as required. H. Except as provided in any subsequent article, the fees required by this chapter apply to the following: 1. A development project that has previously received from the city a tentative map approval or other approval or a permit, whether discretionary or nondiscretionary, when the approval or permit was conditioned upon payment of fees established under this code to implement an applicable finance plan. 2. A development project that is subject to a development agreement or other agreement between the land-owner and city that requires the payment of fees established under this code to implement an applicable finance plan.

hether discretionary or nondiscretionary, when the approval or permit was conditioned upon payment of fees established under this code to implement an applicable finance plan. 2. A development project that is subject to a development agreement or other agreement between the land-owner and city that requires the payment of fees established under this code to implement an applicable finance plan.

I. Except as provided in any subsequent article, the fees and interest income from those fees shall not be used to make inter-fund transfers or loans. (Ord. 2017-0010 § 1)

A. The city manager shall determine and calculate the fees required by this chapter for each development project in accordance with the applicable finance plans or nexus studies.

B. Fees shall be computed based on the primary uses of the development project and the rates specified for those uses by the finance plan or nexus study.

C. Area associated with an ancillary use shall be included in the commercial building area of the primary use. Warehouses may include no more than 25 percent of the building area as an ancillary office use. D. For projects with multiple primary uses, fees shall be computed by applying the applicable fee rate to the total residential units or total commercial building area for each primary use. (Ord. 2017-0010 § 1)

A. Except as otherwise provided in subsection B or by any written policies, guidelines, or procedures the city council may establish for deferring payment, the fees imposed on a development project must be paid when the first building permit for the project is issued or, for maps, at the earliest of the recording of a parcel map, master parcel map, or final map. If a building permit is not

required for the project, then the fees must be paid when an encroachment permit or other applicable permit is issued. B. In accordance with California Government Code section 66007, when a fee is imposed on a residential development project, the fee must be paid on the date of the final inspection or the date the certificate of occupancy is issued, whichever occurs first, unless subsection C applies.

• C. Subsection A, and not subsection B, applies when fees are imposed on a residential development project and either:

1. The city manager determines that the specific infrastructure fund required by this chapter has been established, that funds for the infrastructure have been appropriated, and that the city has adopted a proposed construction schedule or plan for the infrastructure; or

2. The fee is to reimburse the city for expenditures previously made.

• D. The city shall collect the fees and deposit them in the appropriate infrastructure fund.

• E. If a building permit expires under subsection A of section 15.08.140 because the building or work authorized by the permit is not commenced within 180 days after the date of the permit, then the permit holder is entitled to a refund, subject to the following:

1. The permit holder must submit a written refund application to the city manager within 90 days after the building permit expires; and

2. The amount refunded will not include interest and will not include the administrative component of the fee, which reimburses the city's costs to administer the applicable fee.

• F. Failure to timely submit an application for a refund is an absolute and unconditional waiver of any right to a refund. Fees not refunded can be used as credits as provided for in section 18.56.125. (Ord. 2017-0010 § 1)

• A. Beginning with the fifth fiscal year following the first deposit into an infrastructure fund, and in each succeeding fiscal year, the city council shall make the following findings with respect to the moneys in each infrastructure fund that remain unexpended, whether committed or uncommitted as of the date of the report:

1. A finding identifying the purpose to which the fee revenues and any interest earned on them are to be put;

2. A finding demonstrating a reasonable relationship between the fee and the purpose for which it is established;

3. A finding identifying all sources and amounts of funding anticipated to complete the financing of incomplete components of the applicable infrastructure; and

4. A finding designating the approximate dates on which the funding referred to in subsection A.3 is expected to be deposited into the applicable infrastructure fund.

• B. The city council shall make the findings required by subsection A in connection with the information required by section 18.56.150.A. If the findings are not made as required by subsection A, then the city shall refund the moneys in the infrastructure fund in accordance with subsection C.

• C. Except as provided in subsection D, when the city has collected sufficient funds to complete financing of an incomplete component of the infrastructure, as determined under section 18.56.150.A.6, the city shall take one of the following actions within 180 days of the determination that sufficient funds have been collected:

1. Identify an approximate date by which the construction of the component will be commenced; or

2. Refund on a prorated basis, to the then-current record owner or owners of the lots or units of the development project or development projects as identified on the last equalized assessment roll, the unexpended portion of the fee and any interest accrued on it, subject to following: a. The city may refund the unexpended revenues by direct payment, by providing a temporary suspension of fees, or by any other reasonable means consistent with the purpose of this section. b. If the administrative cost to refund the unexpended or unappropriated fee revenue would exceed the amount to be refunded, then the city council, after considering the matter at a public hearing, notice of which is given in the manner provided for by California Government Code section 66001, subdivision (f), may appropriate the revenue for any other public improvement, facility, or property for which fees are imposed and which the city council determines will benefit the development project. c. The portion of any fee revenue the city receives as reimbursement of its costs to administer this chapter will not be refunded but shall be applied to reduce the portion of the fee charged for administrative purposes. D. This section is to be applied consistently with subdivisions (d), (e), and (f) of California Government Code section 66001.

• E. This section does not apply to the extent a subsequent article in this chapter provides otherwise. (Ord. 2017-0010 § 1)

This chapter does not relieve a person from complying with the following:

• A. The obligation to pay other applicable fees relating to development of property, including application fees, processing fees, mitigation fees, and other development-impact fees within the city's control; B. Any public-facility or public-improvement requirements imposed by applicable law, including this code;

C. Any requirement under applicable law, including this code, the city charter, and the California Government Code, to dedicate property for public use at the time of approval of a tentative subdivision map, tentative master-parcel map, certificate of compliance, building permit, or other land-use entitlement; and D. Any mitigation requirements for identified project-related environmental effects. (Ord. 2017-0010 § 1)

• A. For each fee, within 180 days after the end of each fiscal year, the city manager shall prepare for the city council a report identifying the following information for that fiscal year: 1. A brief description of the fee;

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B. Concurrently with filing the written protest, the applicant must tender to the city manager the full amount of the fee under protest, together with payment of a non-refundable protest-filing fee in the amount established by resolution of the city council to offset the city's costs of processing the protest and any appeal. The applicant will be liable for the city's actual cost to process the protest, including the cost of any appeal to the city council, to the extent that the actual cost exceeds the filing fee. The city may deduct the excess amount from any refund found due and owing to the applicant or may add it to the amount of the fee found to be due or owing from the applicant, as the case may be.

C. The city manager shall consider the protest at an informal hearing held within 60 days after the filing of the protest notice. The city manager shall issue a written decision on the protest and send a copy of the decision to the applicant by first-class mail, postage prepaid, within 15 days after the later of the following: the date of the informal hearing or the date the city manager sets during the informal hearing for the applicant's submission of any additional evidence the city manager determines to be necessary to the decision. The applicant's failure to timely submit additional information requested by the city manager may result in denial of the protest. The city manager's decision is final and is not appealable, except as provided in subsections F and G.

• D. The city manager shall consider the following when determining whether to approve or deny a protest:

1. The matters set forth in CaliforniaGovernment Code section 66001, subdivisions (a) and (b).

2. The substance and nature of the evidence presented by the applicant.

3. The facts, findings, and conclusions stated in the applicable finance plan or nexus study, including technical information, studies, audited construction costs, and reports contained within and supporting the plan, together with findings supporting the resolution setting the amount of the fee in question. The applicant must present comparable technical information, studies, and reports to demonstrate that the fee is inappropriate for the development project involved.

E. If the city manager grants the protest and reduces the fee amount owed, and if the zoning for the development project involved is subsequently changed to allow a more-intensive use, then the applicant for the first building permit based on the more-intensive use shall pay, as a condition of approval for that permit, a supplemental fee equal to the difference between the applicable fee previously paid (adjusted by an automatic annual adjustment, if applicable) and the fee that applies when the building permit based on the more-intensive use is issued.

ow a more-intensive use, then the applicant for the first building permit based on the more-intensive use shall pay, as a condition of approval for that permit, a supplemental fee equal to the difference between the applicable fee previously paid (adjusted by an automatic annual adjustment, if applicable) and the fee that applies when the building permit based on the more-intensive use is issued.

F. The applicant may appeal the city manager's decision to the city council in accordance with chapter 1.24 by filing a notice of appeal with the city clerk within 10 days after the date the city manager mails the decision. In deciding the appeal, the city council or the appointed hearing examiner, as the case may be, shall consider the factors set forth in subsection D. The city clerk shall mail the city council's or hearing examiner's decision to the applicant by first-class mail, postage prepaid, within five days after the hearing on the appeal concludes. The decision will be final and not appealable, except as provided in subsection G.

G. The protest procedures in this section are administrative procedures that must be exhausted before the filing of any petition seeking judicial review. Such a petition must be filed under Code of Civil Procedure section 1094.5 on or before the later of the following: the 90th day after the date on which the decision is mailed to the applicant, or the expiration of the 180-day limitation period in California Government Code section 66020, subdivision (d)(2).

• H. This section does not apply to the extent a subsequent article in this chapter provides otherwise. (Ord. 2017-0010 § 1)

This chapter and all resolutions adopted under it are subordinate to the Mitigation Fee Act. The Mitigation Fee Act controls if a conflict arises between it and this chapter or any resolution. (Ord. 2017-0010 § 1)

Any judicial action or proceeding to attack, review, set aside, void, or annul any ordinance or resolution imposing, adopting, or modifying any fee or an automatic adjustment that results in an increase of the fee amount, shall be brought pursuant to the Mitigation Fee Act. (Ord. 2017-0010 § 1)

A. If any provision of this chapter or its application to any person or circumstance is held invalid or ineffective by any court of competent jurisdiction, or by reason of any preemptive legislation, that invalidity shall not affect the validity of the remaining provisions of this chapter. The city council declares that it would have enacted this chapter and each section, subsection, subdivision, sentence, clause and phrase, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases or words be declared invalid.

• B. If, for any reason, any fee amount established by this chapter is invalid, then all remaining fee amounts so established remain in effect.

• C. If any fee established by this chapter is invalid because of an insufficient nexus to a specific component of the applicable infrastructure, then the fee remains valid as it relates to other components of the infrastructure. (Ord. 2017-0010 § 1)