Westlake Village Municipal Code Ch. 8.11 Development Impact Fee

This Chapter shall be known and may be cited as the Development Impact Fee ("DIF") Ordinance.

(Ord. No. 303-23, § 1, 6-28-2023)

The City Council, having reviewed and considered the study entitled "City of Westlake Village Citywide Development Impact Fee Nexus Study" ("Nexus Study") approved by the City Council on June 14, 2023, finds and determines that:

A. In order to effectively implement the Westlake Village General Plan and North Business Park Specific Plan ("NBPSP"), manage new residential and non-residential development, and address impacts caused by such development, certain public facilities must be constructed or acquired, and public equipment must be acquired.

B. In order for the City to construct or acquire public facilities and acquire public equipment, it is necessary to require that all new development bear its fair share cost of providing the facilities and equipment reasonably needed to serve that development.

C. Development impact fees ("DIF") are created for that purpose.

D. As indicated in the Nexus Study, the DIFs can fund the entire share or a portion of the capital costs associated with constructing or acquiring public facilities and acquiring public equipment reasonably needed to serve new development, while any existing deficiencies in public facilities and equipment would need to be funded from other sources.

E. Payment of the DIF does not necessarily mitigate to a level of insignificance all impacts from new development. Whether impacts associated with a particular development project have been mitigated to a level of insignificance will be determined by the City on a case by case basis.

F. The public facilities and equipment described in the Nexus Study include data compiled from information provided by various City departments based on the anticipated needs of the City due to future development based on the City's General Plan and the NBPSP.

G. The DIF collected pursuant to this Chapter shall be used toward the construction and acquisition of public facilities and equipment identified in the Nexus Study. The need for the public facilities and equipment is related to new residential and non-residential development because such new development will bring additional people and other uses into the City thus creating an increased demand for the public facilities and equipment.

H. The cost estimates set forth in the Nexus Study are reasonable cost estimates for the public facilities and equipment and that portion of the DIF expected to be generated by new development will not exceed the total fair share of these costs.

I. Failure to mitigate growth impacts on public facilities and equipment within the City will place residents in a condition perilous to their health, safety, and welfare.

J. There is a reasonable relationship between the use of the DIF and the type of development projects on which the DIF is imposed because the DIF will be used to construct the public facilities and purchase equipment, and the public facilities and equipment are necessary for the health and welfare of the residential and non-residential users of the development projects on which the DIF will be levied.

K. There is a reasonable relationship between the need for the public facilities and equipment and the type of development projects on which the DIF is imposed because it will be necessary for the residential and non-residential users of the development projects to have access to the public facilities and equipment in order to use, inhabit, and have access to the development projects. New development will benefit from the facilities and equipment to be funded with DIF and the burden of such new development will be mitigated, in part, by the payment of the DIF.

L. This Chapter is for the purpose of promoting public health, safety, comfort, and welfare, and adopts means that are appropriate to attaining those ends.

(Ord. No. 303-23, § 1, 6-28-2023)

This Chapter is established under the authority of Article 11, Section 7 of the California Constitution and the Mitigation Fee Act, which provides that a local agency may establish fees for the purpose of defraying all or a portion of the cost of public facilities related to development projects.

(Ord. No. 303-23, § 1, 6-28-2023)

This Chapter serves the following purposes:

A. It establishes and sets forth policies, regulations, and fees relating to the funding and installation of the public facilities and equipment necessary to address the direct and cumulative environmental effects generated by new development projects described and defined in this Chapter.

B. It establishes the authorized uses of the DIF collected.

(Ord. No. 303-23, § 1, 6-28-2023)

The City Manager shall be responsible for the administration of this Chapter. The City Council is authorized to adopt a resolution establishing administrative procedures for the implementation of this Chapter.

(Ord. No. 303-23, § 1, 6-28-2023)

For the purposes of this Chapter, unless it is plainly evident from the context that a different meaning is intended, the following definitions shall apply. Whenever a reference is made to a law other than this Code, the reference applies to the then-current version of such law.

A. "Accessory Dwelling Unit" shall have the meaning as set forth in Section 9.2.020 of Chapter 9.2 of Article 9 of this Code.

B. "Certificate of Occupancy" means a certificate of occupancy as defined in the Building Code of the City of Westlake Village or by state law.

C. "City" means the City of Westlake Village.

D. "City Manager" means the City Manager of the City or his or her designee.

E. "Credit" means a credit allowed pursuant to Section 8.11.100, which may be applied against the DIF.

F. "Development Agreement" means an agreement entered into between the City and an owner of real property pursuant to Government Code Section 65864 et seq.

G. "Development Impact Fees," "DIF," or "Fees" means the fees imposed pursuant to the provisions of this Chapter.

H. "Development Project" or "Project" means any project undertaken for the purpose of development, including the issuance of a permit for construction pursuant to Article 8.

I. "DIF Program" means the process of collecting and expending DIFs.

J. "Dwelling" shall have the meaning as set forth in Section 9.2.020 of Chapter 9.2 of Article 9 of this Code.

K. "Facilities and Equipment" means the public facilities and equipment financed by the DIF program and includes all facilities set forth in the Nexus Study and any subsequent revisions thereof approved by resolution of the City Council, including the land and right-of-way required for the facilities.

L. "Final Inspection" means a final inspection as defined in the Building Code of the City of Westlake Village.

M. "Mitigation Fee Act" means Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 7.5 (commencing with Section 66015), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code.

N. "Mobilehome" shall have the meaning as set forth in Section 9.2.020 of Chapter 9.2 of Article 9 of this Code.

O. "Nexus Study" means the "City of Westlake Village Citywide Development Impact Fee Nexus Study" approved by the City Council on June 14, 2023.

P. "Non-residential Use" means commercial, office, industrial, and other uses not defined as residential uses, as the term is used in the Nexus Study.

Q. "Residential Use" means single-family and multifamily residential uses, as the terms are used in the Nexus Study and defined in Section 9.2.020 of Chapter 9.2 of Article 9 of this Code.

R. "Revenue" or "Revenues" means any funds received by the City pursuant to the provisions of this Chapter for the purpose of defraying all or a portion of the cost of the facilities and equipment set forth in the Capital Improvement Program adopted by the City Council on June 14, 2023, as part of the Nexus Study.

S. "Single-Family Dwelling" shall have the meaning as set forth in Section 9.2.020 of Chapter 9.2 of Article 9 of this Code.

T. "Structure" shall have the meaning as set forth in Section 9.2.020 of Chapter 9.2 of Article 9 of this Code.

(Ord. No. 303-23, § 1, 6-28-2023)

In order to assist in providing revenue to acquire or construct the public facilities and equipment set forth in the Nexus Study and to fulfill the purposes of this Chapter there is hereby established development impact fees to be paid for each development project, or a portion thereof, to be constructed in the City. The amount of the DIF, the description of the facilities and equipment to be financed by DIF, definitions of terms necessary to implement the DIF, and such other regulations as may be necessary or convenient to implement and administer the DIF to be imposed pursuant to this Chapter shall be established by resolution of the City Council.

(Ord. No. 303-23, § 1, 6-28-2023)

DIF shall be paid as follows:

A. DIFs for non-residential uses shall be paid prior to the issuance of a building permit.

B. DIFs for residential uses shall be due and payable in accordance with California Government Code Section 66007, upon the issuance of a building permit; provided, however, that the DIFs imposed may be deferred until the date of the final inspection, or the date the certificate of occupancy is issued, whichever occurs first, pursuant to a written agreement, entered into and recorded in accordance with California Government Code Section 66007(c).

C. For development projects that the City does not require a final inspection or issue a certificate of occupancy, the DIF shall be paid prior to any use or occupancy.

D. DIFs shall be assessed one (1) time per lot or parcel except in cases of changes in land use. DIFs for changes in land use shall be reduced by the amount of any previously paid DIF for that property. It shall be the responsibility of the applicant to provide documentation of any previously paid DIF.

E. The required DIFs shall be the fee amounts in effect at the time of payment.

F. There shall be no deferment of required DIF payments beyond final inspection or issuance of certificate(s) of occupancy, except as provided by law.

G. Notwithstanding any other written requirements to the contrary, DIFs shall be paid whether or not the development project is subject to City conditions of approval imposing the requirement to pay the DIF.

H. If all or part of the development project is sold prior to payment of the DIF, the property shall continue to be subject to the requirement for payment of the DIF as provided herein.

(Ord. No. 303-23, § 1, 6-28-2023)

DIFs for residential and non-residential uses shall be calculated in accordance with the Nexus Study, subject to modification by resolution of the City Council. Building areas shall be determined or verified by City staff based upon applicants' site plans as submitted to the City.

(Ord. No. 303-23, § 1, 6-28-2023)

If an owner or developer of real property dedicates land or constructs facilities identified in the applicable fiscal year or five-year City Capital Improvement Program, the City may grant the owner or developer a credit in one (1) or more of the fee components described in this Chapter against the DIFs required. No credit shall be granted for the cost of improvements not defined herein as "facilities and equipment" in the Nexus Study. A credit granted at the time of development approval shall be included as a condition of that approval and may be included as a term in a development agreement for the project. After development approval, but before the issuance of a building permit, an owner or developer may request a credit from the City Manager. If the City Manager determines that a credit is appropriate, the owner or developer shall enter into a credit agreement, which shall be approved by the City Council. The credit amount shall be initially calculated by estimating the fair market value of the land dedicated or by estimating the cost of constructing facilities. The City shall subsequently review and determine the actual value of the land dedicated and the actual construction costs allowable. Any credit granted shall not exceed the allocated cost for the facilities and equipment. Any credit granted shall be given in stated dollar amounts only.

(Ord. No. 303-23, § 1, 6-28-2023)

Beginning July 1, 2024, the City Manager shall authorize the adjustment of the DIF rates for inflation on July 1st of each year by the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U): Los Angeles-Long Beach-Anaheim (or any successor index). The calculation for that annual adjustment shall be made using the month of April over the month of April in the prior year.

(Ord. No. 303-23, § 1, 6-28-2023)

The following types of construction shall be exempt from the provisions of this Chapter:

A. Any replacement or reconstruction of a dwelling or non-residential structure damaged or destroyed by fire or natural causes;

B. Rehabilitation or remodeling of an existing residential or non-residential use;

C. Any replacement or reconstruction of an existing single-family dwelling with another single-family dwelling, including replacement structures or reconstructed structures that exceed the documented total square footage of the original single-family dwelling;

D. Additions to an existing single-family structure;

E. The location or installation of a mobilehome, without a permanent foundation, on any site; and

F. The construction or addition of an accessory dwelling unit.

(Ord. No. 303-23, § 1, 6-28-2023)

All DIF received pursuant to this Chapter shall be deposited, invested, accounted for, and expended in accordance with California Government Code Section 66006 and all other applicable provisions of law.

(Ord. No. 303-23, § 1, 6-28-2023)

The costs for administering the provisions of this Chapter shall be recovered annually using revenues from the DIF program administration fund.

(Ord. No. 303-23, § 1, 6-28-2023)