Tracy Municipal Code Art. 1 Credits

A Subdivider may be eligible for a fee credit or reimbursement, pursuant to this chapter, only if the Subdivider submits a written request to the City Engineer which establishes compliance with all of the following requirements to the satisfaction of the City Engineer:

(a) Describe the specified public improvements to be constructed by the Subdivider;

(b) Identify the components of the total program costs (construction, design, construction management and/or land acquisition, pursuant to section 13.08.020) for which the Subdivider is requesting credit;

(c) Describe the development project or projects to which the credit is requested to apply. The description shall either: (1) be limited to the development project for which specified public improvements are a condition of approval; or (2) document that the development projects for which credit is requested to apply: (i) receive a benefit from the specified public improvements, and (ii) do not create the need for the construction of additional program improvements to which the credited fees would apply;

(d) Document that either: (1) the Subdivider is required, as a condition of approval for the development project, to construct the specified public facilities; or (2) the Subdivider requests to build one or more specified public facilities which benefit the development project, and the City Engineer determines in writing prior to the commencement of construction that it is in the City's best interests for the specified public facilities to be built by the Subdivider, and the land on which the specified public facilities are to be built is either owned by, or offered for dedication to, the City through a recorded document;

(e) Document that either: (1) the City has approved the design of the specified public facilities with approved improvement plans; or (2) the Subdivider has submitted a timely written request to design the specified public facilities, pursuant to section 13.08.010(j), and the proposed design is in the best interests of the City;

(f) To the extent that credit for land acquisition costs are requested, document that: (1) the terms of acquisition are in the best interests of the City; (2) the amount of credit for the land acquisition is equal to a reasonable estimate of the fair market value of the land based upon either: (i) documentation provided by the Subdivider to the City, or (ii) in the event that the City Engineer determines that the documentation provided by the Subdivider does not provide a reasonable basis for determining the fair market value of the land, the Subdivider shall pay for the costs of a property appraisal by an expert selected by the City Engineer which is qualified to express an opinion as to the value of the property (pursuant to Code of Civil Procedure section 1255.010); and (3) prior to allocation of credit by the City, the Subdivider will transfer the real property to the City in a form acceptable to the City Engineer;

(g) Document that, prior to the allocation of credit by the City, the Subdivider shall enter into a written agreement with the City by which the Subdivider agrees to construct the specified public facilities in return for the potential credit to be allocated in accordance with this title;

(h) Document that the Subdivider will, prior to the allocation of credit by the City and before beginning construction, either: (1) provide improvement security (in a form acceptable to the City pursuant to Title 12 of the Tracy Municipal Code); (2) finance the specified public facilities by cash, assessment district, or Mello-Roos Community Facilities District; or (3) a combination of the above;

(i) The Subdivider shall pay: (1) the City plan check fee (only if the Subdivider receives City approval for design credit); and (2) the City inspection fee. The amount of the plan check and inspection fees for the specified public improvements for which the Subdivider receives credit shall be in accordance with City regulations;

(j) The request shall be submitted by the Subdivider to the City Engineer in accordance with the following timing requirements: (1) to the extent that the Subdivider requests credit for design, the request shall be submitted prior to the commencement of any design services by the Subdivider; and (2) to the extent that the Subdivider requests credit for construction, contract management, or land acquisition, the request shall be submitted concurrently with the submittal of improvement plans. In any event, all requests submitted pursuant to this section shall be submitted prior to the recordation of the final map or parcel map for the development project; provided that a Subdivider may submit a late application if the Subdivider pays a processing fee established in accordance with City regulations to cover the City's reasonable costs associated with administering the late application.

(§ 1, Ord. 975 C.S., eff. August 15, 1998)

In the event that the City Engineer determines that the Subdivider has submitted a timely application which demonstrates that the Subdivider will be able to complete all of the requirements described in section 13.08.010 (a)—(j), the City Engineer shall prepare a written determination of the amount of potential credit available to the Subdivider. The calculation of the amount of potential credit shall be made pursuant to the terms of this section. Of the total program costs, as defined in section 13.04.050, the Subdivider may be entitled to potential credit for the following components:

(a) Estimated construction costs for the specified public facility;

(b) Estimated design costs;

(c) Estimated construction management costs;

(d) Estimated costs of land acquisition;

(e) The Subdivider shall not be entitled to any credit for program implementation or contingencies.

(§ 1, Ord. 975 C.S., eff. August 15, 1998)

After the Subdivider receives the City Engineer's written determination of the amount of potential credit available to the Subdivider, and the Subdivider establishes completion of all requirements described in sections 13.08.010 (f)—(i), the City Engineer shall prepare a written determination of the amount of actual credit available to the Subdivider. The Subdivider may apply the actual credit against fees which would otherwise be imposed upon the Subdivider, in accordance with this section. However, the Subdivider shall be entitled to apply the credit against fees only if the Subdivider submits to the City Engineer a written designation of credit allocation which establishes the following:

(a) To apply credit to any or all lots within a final map or final parcel map, the designation must be made no later than the date of issuance of the first building permit for the final map or final parcel map; provided that a Subdivider may submit a late application if the Subdivider pays a processing fee established in accordance with City regulations to cover the City's reasonable costs associated with administering the late application. The designation may be made no sooner than the date on which the City approves the final map or final parcel map.

(b) The credits may only be applied to lots within the development project or projects for which the application for credit was made.

(c) The credits may only be applied to fees for the specified public facility category in which the credited public facility (i.e., the public facility constructed by the Subdivider) is included.

(d) The designation must specifically identify to which lots the credit will be applied.

(e) The total amount of credit to be applied shall not exceed the amount of actual credit available to the Subdivider, as set forth in the City Engineer's written determination.

(f) The credits may only be applied on a lot-by-lot basis to lots for which the Subdivider has a sufficient actual credit balance to offset the full fee (as described in section 13.08.040); provided that, for the last lot to which the Subdivider applies credit, the Subdivider may apply a partial credit to offset a portion of the fee. The credits may not be applied on a pro rata basis to apportion partial credit over multiple lots.

(g) No credits shall be allocated retroactively. That is, no credits shall be applied to any lot for which fees have already been paid to the City.

(§ 1, Ord. 975 C.S., eff. August 15, 1998)

In the event that the City Engineer determines that the Subdivider has properly designated the application of credit against fees, pursuant to section 13.08.030, the City Engineer shall prepare a written determination of credit allocation and credit balances which will be calculated as follows: The amount of actual credit available to the Subdivider shall be debited in an amount equal to the sum of: (a) the amount of reimbursements requested by the Subdivider pursuant to section 13.08.050, and (b) the product of: (1) the number of lots properly designated in accordance with section 13.08.030, and (2) the relevant fee for the specified public facility category in effect (pursuant to implementing resolution) at the time of the designation.

(§ 1, Ord. 975 C.S., eff. August 15, 1998)