San Marcos Municipal Code Ch. 17.54 Requirement of Reimbursement of City Expenditures for Capital…

In accordance with the freedom afforded to charter cities generally and by the Charter of the City of San Marcos, the City, the San Marcos Redevelopment Agency or both may in the best interests of the City and from time to time determine to advance the timing of

the construction of necessary public facilities that would otherwise be constructed as the development of certain parcels occurs as a condition of approval of such development. The purpose of this chapter is to establish a mechanism by which the costs of the advanced construction of such public facilities incurred by the City, the San Marcos Redevelopment Agency or both may be reimbursed by the owners of those parcels that would otherwise have been responsible for financing and/or constructing such public facilities as a condition of approval of the development of such parcels.

Whenever a Capital Improvement Program (CIP) project for the advanced construction of public facilities, including, but not limited to, street improvements, such as curbs, gutters, sidewalks, street lights and pavement, storm drainage facilities, public sanitary sewer facilities, grading, traffic signals and appurtenances thereof, is proposed to be undertaken or has been undertaken by the City of San Marcos or the San Marcos Redevelopment Agency, for the betterment of area residents, businesses and/or property owners, the City Engineer may, at any time before or after final inspection and acceptance of the improvements by the City, determine the estimated or final cost of such public facilities, the boundary of the area of all parcels that should be responsible for defraying that portion of the cost of construction of such CIP project related to the development or redevelopment of such parcels (each, an "Obligated Parcel"), and the allocation of the costs of such construction to the Obligated Parcels pursuant to the provisions of this Chapter 17.54.

In furtherance of the foregoing, the City Engineer will prepare a reimbursement plan that will include the following:

(a)

A legal description or list of the Assessor's Parcel Numbers of all proposed Obligated Parcels;

(b)

A detailed plat showing the precise locations of all of the public facilities constructed as part of the CIP project and complete dimensions (including frontage) of all proposed Obligated Parcels;

(c)

A reimbursement schedule to include a list of all proposed Obligated Parcels with current Tax Assessor's parcel number, owner's name, property's street address, and the acreage of proposed Obligated Parcels and a proposed reimbursement fee;

(Ord. No. 2008-1310, 8-12-08)

(d)

A report identifying the burden which the development of each proposed Obligated Parcel in accordance with its zoning and general plan designation will impose upon the public facilities constructed as part of such CIP project and the extent to which the development of such proposed Obligated Parcel will contribute to the need for such public facilities;

(e)

The detailed estimated or final cost of the design and construction of such public facilities;

(f)

A detailed description of the method of reimbursement fee allocation;

(g)

An explanation of how there is a reasonable relationship between the reimbursement fee's use and Obligated Parcels on which the fee is proposed to be imposed;

(h)

An explanation of how there is a reasonable relationship between the need for the public facility and the Obligated Parcels on which the reimbursement fee is proposed to be imposed; and

(i)

An explanation of how there is a reasonable relationship between the amount of the reimbursement fee and the cost of the public facility or facilities or portion of the public facility attributable to the development of the Obligated Parcels on which the reimbursement fee is

proposed to be imposed.

The City Council shall hold a public hearing to determine the boundaries of the area containing the Obligated Parcels and the reimbursement fee that shall be allocated to Obligated Parcels. This reimbursement fee shall only be established if the City Council can make the following findings:

(1)

The purpose of the reimbursement fee.

(2)

The use to which the reimbursement fee is to be put.

(3)

Determine how there is a reasonable relationship between the reimbursement fee's use and the type of development project on which the fee is imposed.

(4)

Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the reimbursement fee is imposed.

(5)

Determine how there is a reasonable relationship between the amount of the reimbursement fee and the cost of the public facility or portion of the public facility attributable to the development on which the reimbursement fee is imposed.

The City Engineer shall report on the reasonableness of the cost of the construction of the public improvements, and the City Council may reduce the reimbursement fee if found to be unreasonable. The hearing may be conducted before or after actual completion of the improvements.

At the conclusion of the public hearing, the City Council shall adopt a resolution approving, conditionally approving or denying the reimbursement plan and the reimbursement fee. If the reimbursement fee is to bear interest as permitted pursuant to Section 17.54.040 below, the resolution shall state the rate of interest applicable to the reimbursement fee. The resolution shall attach as an exhibit thereto a copy of the reimbursement plan as adopted by the Council and shall set forth the method of reimbursement fee allocation as approved by the Council.

(Ord. No. 2008-1310, 8-12-08)

If a reimbursement fee is approved based upon the estimated cost of the construction of the applicable public facilities, the City Engineer shall, upon the determination of the final costs of such construction, report such final costs to the City Council. If such final costs are less than the estimated costs on which the reimbursement fee was based, the reimbursement fee shall be recalculated based upon such final costs.

Any person who files an application for a "development project" as such term is defined in Government Code Section 66000(a) within 20 years from the date the reimbursement fee is in effect, shall pay the reimbursement fee prior to the issuance of the first of any applicable development entitlement. However, the reimbursement fee shall not be required if the building permit is for improving an existing single- family residential home, and the improvements will not change or intensify the residential land use. The reimbursement fee shall not be applicable to any property that has already been subject to the same fee or a fee for the same improvements under the City's Public Facilities Financing plan as provided in Municipal Code Chapter 20.12.

Any reimbursement fee paid within the 20-year period set forth in this section shall include the principal fee plus interest from the date the reimbursement fee was in effect. Said interest shall not exceed five percent per year. Upon payment of said fee, the City Clerk shall record with the County Recorder a notice satisfactory to the City Attorney that said fee has been paid on said parcel.

The resolution of the City Council shall be recorded in the Office of the Recorder of San Diego County. The reimbursement fee shall become a lien upon the property against which it is allocated and shall be payable as set forth in Section 17.54.040 above as a condition of approval of development review for the property, or any portion thereof, to the order of the agency to be reimbursed, to be deposited in the appropriate fund according to the nature of the public facilities for which the payment is made.

Notwithstanding any other provisions of this chapter to the contrary, the City and/or the San Marcos Redevelopment Agency may waive payment in full or in part of the reimbursement fee upon finding that such waiver would promote the prompt implementation of, and would not otherwise be inconsistent with, the redevelopment plan.

(Ord. No. 2008-1310, 8-12-08)