Chapter MH-2 — TRANSPORTATION IMPROVEMENT FEE

Sections:

MH-3-1200 - PURPOSE AND INTENT.

This chapter codifies the principle that new development within the community should fund the costs of the transportation improvements required to serve development. It is the intent of this chapter to establish the transportation improvement fee pursuant to the implementation mechanisms described in the Mountain House master specific plan, public financing plan, and supporting documents. In order to implement the goals and objectives of the master specific plan for the community regarding transportation improvements, and to mitigate the impact of development within the community and the surrounding areas, certain transportation improvements must be designed and constructed. The Board of Directors has determined that a transportation improvement fee is needed in order to finance these transportation improvements and to pay the development's fair share of the costs of improvements outside of the boundaries of the community.

(Ord. 4078 § 1 (part), 2000)

MH-3-1201 - FINDINGS.

The Board of Directors of the CSD finds and declares as follows:

(a)

Following extensive planning, environmental impact analysis, and public review, the Board of Supervisors adopted the Mountain House master specific plan and other community approvals as an implementation measure to the San Joaquin County general plan.

(b)

The environmental impact reports prepared for the community, certified by the County and found to legally comply with the California Environmental Quality Act (CEQA) by the San Joaquin County Superior Court, identified transportation impacts associated with the development of the project. The development impacts on the existing transportation infrastructure and development impacts from construction of the community are mitigated through the implementation measures identified in the master specific plan and related documents and through the land use planning of the community which provides for orderly and economical growth by placing homes and employment together.

(c)

The master specific plan sets forth a comprehensive plan for the community, including a land use plan, which designates and guides the location and amount of land for residential, commercial, industrial, institutional, and recreational uses.

(d)

The Board of Supervisors has also adopted specific plan I and will adopt subsequent specific plans, as the primary implementation documents of the master specific plan.

(e)

The Board of Supervisors has also adopted the public financing plan which enumerates certain goals. These goals include: (Goal 2) development within the Mountain House master plan shall finance the full costs of infrastructure needed to serve the area...; (Goal 4) future development within Mountain House shall pay the costs of mitigating impacts on existing facilities, infrastructure, and environment...; (Goal 4) infrastructure costs shall be allocated among master plan properties based on the principle of benefit received; (Goal 5) the County or CSD shall provide the necessary institutional framework for proposed financing entities and arrangements; and (Goal 6) mechanisms shall be established for ensuring the timely construction of public improvements, dedications of necessary public lands and rights-of-way, and reimbursement of disproportionate costs.

(f)

The Board of Supervisors has adopted the public financing plan which includes policies for reimbursing the master developer for the costs of forming and funding the community services district and its projects.

(g)

There are three types of infrastructure costs associated with the community: community facilities, transportation improvements, and utility facilities. Community facilities will be financed by the community facilities fee and is described and defined in the community facilities program. Transportation improvements will be financed by the transportation improvement fee and is described and defined in the MHTIF technical report and this chapter. Utility facilities will be funded by the utility rates and related revenue bonds.

(h)

The public financing plan includes a description of the transportation improvements (including roadway improvements, intersections, and bridges) planned as a part of the community's development; and in accordance with the master specific plan, the CSD intends to have developers fund and/or construct the transportation improvements to serve new development and to maintain or improve existing levels of service for traffic.

(i)

A MHTIF technical report for the transportation improvement fee, dated March 20, 2000, was prepared by OpTrans, Inc., pursuant to the policies contained in the public financing plan; the MHTIF technical report is on file with the Clerk of the Board. The transportation improvements for which the transportation improvement fee will be used are specifically identified in the MHTIF technical report. The MHTIF technical report may be amended from time to time to reflect current conditions and circumstances and more refined engineering cost estimates.

(j)

The transportation improvements planned for the community are part of an integrated infrastructure and service system essential to alleviate traffic congestion and ensure the public health and safety of all landowners, residents, businesses, and employees within the community.

(k)

The adoption of this chapter is necessary to implement the master specific plan to provide for the transportation services and facilities needed for the community. In implementing this chapter, the Board is authorized to mitigate the transportation impacts caused by development of the community utilizing any of the implementation measures identified in the master specific plan.

(l)

Transportation improvement fees are based upon the adopted policy that new development generates additional residents, employees, and structures, which in turn place an additional cumulative burden upon the County's infrastructure, and that such development should pay its proportionate share of the cost for new transportation improvements and are consistent with the implementation measures authorized in the master specific plan and supporting documents.

(m)

The supporting documents provide the technical basis for the transportation improvement fee and are incorporated by reference into this chapter.

(n)

Implementation of a fee as prescribed in this chapter along with participation in the County's traffic impact mitigation fee program will result in the mitigation of transportation impacts identified in the master specific plan and related documents.

(Ord. 4078 § 1 (part), 2000)

MH-3-1202 - AUTHORITY.

This chapter is enacted pursuant to California Government Code Section 66000 et seq. and the authority vested in the CSD, a community services district formed pursuant to Division 3 (commencing at Section 61000) of Title 6 of the California Government Code.

(Ord. 4078 § 1 (part), 2000)

MH-3-1203 - APPLICATION.

This chapter applies to special fees charged as a condition of approvals as described in Section MH-3-1204 to defray the cost of specified transportation improvements required to serve new development within the Mountain House master specific plan area, as delineated by the boundaries of the adopted master specific plan. The fees charged under this chapter do not replace subdivision map exactions, unless such exactions relate to the facilities funded pursuant to this chapter, or other measures required to mitigate site-specific impacts of a development project; other regulatory, development, and processing fees; funding required pursuant to a development agreement or reimbursement agreement for amounts that may exceed a development's proportional share of facility costs; assessments charged pursuant to special assessment or benefit assessment district proceedings and which do not fund facilities to be funded by this fee; or property taxes, unless so specified.

(Ord. 4078 § 1 (part), 2000)

MH-3-1204 - TRANSPORTATION IMPROVEMENT FEE REQUIREMENT.

(a)

Establishment of Fees. A transportation improvement fee for traffic impact mitigation is established for new development in the community to pay for transportation improvements to mitigate the impact related to the new development, including but not limited to major arterials, traffic signalization, roadway improvements, bridge construction, and reconstruction. The fee shall not be collected until the Board, in a Board resolution:

(1)

Sets forth the purpose of the fee;

(2)

Identifies the specific use(s) of facilities to be financed;

(3)

Describes how there is a reasonable relationship between the fee's use and the type of development project;

(4)

Determines how there is a reasonable relationship between the need for the use(s) or transportation improvements and type(s) of development project(s);

(5)

Determines the amount of the fee and how there is a reasonable relationship between the amount of the fee and the cost of the transportation improvements or portion thereof attributable to the development; and

(6)

Establishes a separate capital facilities account into which the fees shall be placed, provides for appropriation of the fees, and references the proposed construction schedule or plan adopted for the public facilities.

(b)

Land Use Categories. The categories of land uses for which the transportation improvement fee will be charged are:

(1)

Very low density residential (R/VL);

(2)

Low density residential (R/L);

(3)

Medium density residential (R/M);

(4)

Medium-high density residential (R/MH);

(5)

Senior housing (designated R/MH and R/H areas);

(6)

High density residential (R/H);

(7)

Neighborhood commercial (C/N);

(8)

Community commercial (C/C);

(9)

General commercial (C/G);

(10)

Freeway service commercial (C/FS);

(11)

Office commercial (C/O);

(12)

Mixed use (M/X);

(13)

Limited industrial (NOB) (I/L);

(14)

Limited industrial (SOB) (I/L);

(15)

General Industrial (I/G);

(16)

Public (P);

(17)

Golf courses (OS/O);

(18)

Marina (OS/O);

(19)

Parks and other open space (designated parks and OS/O);

(20)

Resource conservation (OS/RC).

(c)

Amount of the Fee. The amounts and calculation of the transportation improvement fee established by resolution of the Board shall be based upon the following considerations:

(1)

Developers will only pay for the construction of transportation improvements included in the MHTIF technical report if there is a reasonable relationship between the facilities being funded and the demands and needs generated by the new development.

(2)

Each type of new development shall contribute to the funding of the transportation improvements included in the MHTIF technical report in proportion to the need for the facilities created by that type of development.

(3)

The transportation improvements funded by the transportation improvement fee and the calculations resulting in the transportation improvement fee are documented in the MHTIF technical report.

(d)

Applications Requiring Payment of Fee. All persons applying for development approvals shall pay transportation improvement fees to the CSD unless a credit is due pursuant to Section MH-3-1207.

(e)

Time of Payment. Transportation improvement fees shall be paid at the time of issuance of a construction building permit.

(f)

Fee Unit. The unit basis of the fee shall be:

(1)

Residential Fees. The transportation improvement fee for residential construction shall be charged for each new dwelling unit with a specific transportation improvement fee amount set for each unit type referenced in this chapter.

(2)

Fees for Nonresidential Uses. The transportation improvement fee for nonresidential construction shall be charged on each one thousand (1,000) square feet of building for each land use type as referenced in this chapter.

(3)

Fees for Other Uses. Uses not specified in the MHTIF technical report or the transportation improvement fee resolution shall be calculated by the CSD on the basis of the facility costs and allocation methods used for the specified uses on a per residential unit or a per building square foot basis.

(g)

Formula for Calculating the Fees. The transportation improvement fee shall be determined by a formula that is based on the cost of the required transportation improvements as defined in the MHTIF technical report, the proportion of those costs attributable to development in the Mountain House master specific plan area, and each unit of development's proportionate share of the Mountain House master specific plan area costs as a whole. These fee calculations are included in the MHTIF technical report and shall be updated annually to reflect the percentage increase, if any, in the ENR Index, changes in construction costs, the amount of actual development to the extent that a development application provides for a different number of units than the basis for the fee calculation, the actual proportional share of costs as determined by additional engineering analysis, and other factors.

(h)

Interest. All fees collected pursuant to this chapter shall be credited with interest on such fees while in the possession of the CSD. The interest earned shall be credited to the account in which the fee was deposited and shall be used solely to pay for the transportation improvements authorized pursuant to this section and the Board resolution.

(Ord. 4078 § 1 (part), 2000; Ord. 4185 § 1, 2003)

MH-3-1205 - USE OF FEE REVENUE.

The transportation improvement fee shall fund transportation improvements identified in the MHTIF technical report that are attributable to the new development within the master specific plan area as determined in the MHTIF technical report and any future additions and amendments to the said report, all of which are incorporated in this chapter by this reference.

(a)

The CSD shall deposit the fees collected under this chapter in a special fund that will allow the fee revenue to accrue to meet the various funding requirements of the MHTIF technical report.

(b)

The fees and all interest earned on accrued funds in each account shall be used only to:

(1)

First: reimburse a developer as provided in Section MH-3-1206; and

(2)

Second: fund the costs of the transportation improvements specified in the MHTIF technical report.

(Ord. 4078 § 1 (part), 2000; Ord. 4185 § 2, 2003)

MH-3-1206 - REIMBURSEMENTS.

Developers may be entitled to reimbursements from the transportation improvement fee revenue, as follows:

(a)

If a developer installs facilities included in the MHTIF technical report at a certified cost that exceeds the amount of the developer's transportation improvement fee obligation due to oversizing, such developer shall be entitled to lump sum reimbursement by other developers whose properties benefit from the improvements. Reimbursements shall be permitted for the cost difference after the CSD's final determination regarding the reasonableness of the costs. Reimbursement shall not be available if the value of the constructed and dedicated improvements is below the actual or estimated total fee obligation for a given project. Until paid in full, the reimbursement amount will escalate by the percentage increase, if any, in the ENR Index.

(b)

Payments made to developers for oversizing through project reimbursement agreements will be limited, in all cases, to the revenues collected from the portion of the CSD annexation fee dedicated to reimbursements for facilities costs, and from the transportation improvement fee, unless at its discretion the Board elects to supplement the reimbursement to a developer from other funding sources.

(c)

Construction costs shall be certified according to the process set forth in CSD actions.

(d)

Where there are multiple project reimbursement agreements between the CSD and different developers, the transportation improvement fee revenue will be allocated according to seniority, such that the developer with the oldest project reimbursement agreement is reimbursed first, and the developer with the most recent project reimbursement agreement is reimbursed last.

(e)

To the extent transportation improvement fee revenues are available and applicable, the CSD shall distribute such revenues to developers who have entered into project reimbursement agreements with the CSD on a quarterly basis.

(Ord. 4078 § 1 (part), 2000)

MH-3-1207 - CREDIT AGAINST THE TRANSPORTATION IMPROVEMENT FEE.

Developers shall receive credits against their transportation improvement fee obligations, as follows:

(a)

If a developer constructs and dedicates to the CSD, or intends to construct and dedicate transportation improvements to the CSD, such developer shall be entitled to credit against the transportation improvement fee that the developer is otherwise obligated to pay for the developer's fair share of the cost of the facility constructed.

(b)

The amount of the credit shall be based on the amount of the estimated construction cost reflected in the MHTIF technical report. The credit shall be increased/decreased once the actual construction costs are certified as set forth in the CSD actions.

(c)

When there is a delay between the point in time at which the CSD accepts the improvements for which the credit was provided, and the point in time when the developer is required to pay the transportation improvement fee, any credit balance shall be increased each July 1st based on the percentage increase, if any, in the ENR Index since the prior July 1st.

(d)

A credit against transportation improvement fees may be assigned to subsequent developers or builders.

(Ord. 4078 § 1 (part), 2000)

MH-3-1208 - AUTHORITY FOR ADDITIONAL MITIGATION.

Fees collected pursuant to this chapter do not replace development fee charges by other agencies, except as the Board may specifically provide, or limit requirements or conditions to provide, additional site-specific mitigation of site-specific impacts imposed upon development projects as part of the normal development review process.

(Ord. 4078 § 1 (part), 2000)

MH-3-1209 - REFUND OF FEE.

During the annual review of the transportation improvement fee, the Board shall make a finding with respect to any fee revenue not expended or committed five (5) years or more after it was paid. If the Board finds that the fee revenue is not committed, it shall authorize a refund to the then owner of the property for which the fee was paid, pursuant to Government Code Section 66001.

(Ord. 4078 § 1 (part), 2000)

MH-3-1210 - ANNUAL REVIEW.

The transportation improvement fee authorized by this chapter and implementing Board resolution(s), the accumulated fee funds and their appropriation, and supporting documentation, including the MHTIF technical report, shall be reviewed annually by the Board.

(Ord. 4078 § 1 (part), 2000)

MH-3-1211 - TERMINATION OF THE FEE.

The CSD shall not collect the transportation improvement fee established by this chapter once funds sufficient to construct all facilities, or to provide for all necessary reimbursements for the construction of all facilities, described in the then current MHTIF technical report have been collected.

(Ord. 4078 § 1 (part), 2000)