CHAPTER 16 (Ord 3411;05/2008)
REGIONAL DEVELOPMENT IMPACT FEE

§ 16-1.    Terms and Definitions

§ 16-2.    Establishment of a Regional Impact Fee

§ 16-3.    Exemptions

§ 16-4.    Credits or Reimbursements

§ 16-5.    List of Projects on the Regional Transportation System

§ 16-6.    Administrative Costs

16-1 Terms and Definitions

As used in this Chapter, the following definitions shall apply:

A.    “Applicant” means the person or entity applying for a tract map, parcel map, tentative subdivision map, conditional use permit, land use permit, building permit or other land use entitlement for a new development project and their successors and assigns.

B.    “RDIF Agency” refers to the Monterey County Regional Development Impact Fee Joint Powers Agency.

C.    “Regional Development Impact Fee,” or “the Fee,” or “RDIF” refers to the fees approved by the governing boards of the County and other TAMC members on new development within their respective jurisdictions and transmitted to the RDIF Agency as provided in the JPA. The project list for the Regional Development Impact Fee is in Exhibit “B” of the JPA.

D.    “Regional Transportation Improvement Projects,” or “Projects” refers to those public improvements required to mitigate the regional impacts of new development on the roads, highways and arterials within the county as specified in Section 16-5.

E.    “Strategic Expenditure Plan” refers to a plan prepared by the RDIF Agency, which shall include project cost estimates, revenue estimates for the RDIF, other matching funds, a draft timeline for project delivery and, in the event the County-wide sales tax measure for transportation improvements fails to pass, a plan for prioritizing the expenditure of RDIF collected from developments within a particular Transportation Improvement Zone on Transportation Improvements within that zone. The Strategic Expenditure Plan is further defined in Section 10 of the JPA.

16-2 Establishment of a Regional Impact Fee

A.    The Regional Development Impact Fee is hereby established in the amounts specified in a resolution to be adopted by the Council of the City of Monterey for the purpose of paying for Regional Transportation Improvement Projects identified in Exhibit “B” of the JPA needed to meet increased demand created by traffic resulting from new development. The revenues raised from the impact fee shall be remitted to the RDIF Agency to be held, maintained, used and accounted for as required in Government Code section 66006 of the Mitigation Fee Act in a coordinated fashion, as provided in the JPA.

B.    The Regional Development Impact Fee shall be automatically adjusted as of July 1 of each year following the first year after the effective date of this Chapter. The adjustment shall be calculated by TAMC as administrator of the RDIF Agency, based on the increase or decrease in the Engineering News Record Construction Cost Index for the San Francisco Bay Area for the period ending December 31 of the preceding calendar year.

C.    In addition to the automatic adjustment set forth above, TAMC may recommend to the County and other TAMC members that the Regional Development Impact Fee be increased to reflect revisions to the project list in the Monterey County Regional Transportation Plan, program revenue, increases in land values over the inflationary increase, or other factors.

D.    Except as provided in Government Code sections 65961, 66474.2 and 66498.1 or as otherwise provided by state or federal law or the exemptions set forth in Section 16-3 below, no tract map, parcel map, tentative subdivision map, conditional use permit, land use permit, building permit or other land use entitlement for a new development project shall be approved or issued unless payment of the fee is a condition of approval for any such entitlement. Prior to issuance of a building permit or at such other time as required by law, the City shall require the applicant to pay the Fee.

E.    Impact fees shall be imposed and collected by the City and, along with any interest earned on the Fees while in the possession of the City, shall be transmitted by the City to the RDIF Agency on the tenth business day of each month for all Fees collected during the prior month. The Fees shall be placed by the RDIF Agency in the Regional Transportation Impact Fee Trust Fund. All interest or other earnings of the Fund shall be credited to the Fund.

16-3 Exemptions

In addition to any exemptions from the levy of development impact fees provided by law, including, as applicable, the levy of development impact fees which are the subject of a vested tentative map, the following development projects are exempt from payment of the fee required by this Chapter:

A.    The reconstruction of any building so long as the reconstructed building both continues a use of the same category as the prior use and generates the same or fewer trips as the original building, and, so long as the permit for reconstruction is issued and commences within one (1) year from destruction of the building.

B.    Development within the Fort Ord Reuse Agency (“FORA”) area that is subject to transportation improvement fees for transportation projects within the FORA plan area.

C.    Development pursuant to a development agreement that was entered prior to the Effective Date of the Joint Powers Agreement in accordance with the terms of the development agreement in effect prior to the Effective Date of the Joint Powers Agreement.

16-4 Credits or Reimbursements

An applicant who constructs all or part of one of the Transportation Improvement Projects may be eligible for a credit or reimbursement, as provided herein.

A. Credit or Reimbursement for Regional Transportation Impact Projects funded by the Strategic Expenditure Plan.

An applicant may be eligible for a credit to be applied against payment of the Regional Transportation Impact Fee if the applicant constructs or dedicates right-of-way with respect to all or a part of one of the Transportation Improvement Projects that is, at the time the applicant enters into an agreement with the City for construction of such project, included in the prioritization plan of the Strategic Expenditure Plan as a project to be funded.

An applicant may be eligible for a reimbursement if the cost of constructing such a Transportation Improvement Project, or a part of such Project, exceeds the amount of the Regional Transportation Impact Fee to be paid by the applicant. The amount of reimbursement shall equal the difference between the cost of constructing all or a part of the Regional Transportation Improvement Project and the Regional Development Impact Fee for the development project.

Reimbursement shall be from Regional Development Impact Fee revenues only, and the right to reimbursement shall be terminated ten years from the date the applicant entered into the agreement for construction of the project.

The amount of credit, or the credit and reimbursement together, shall be in an amount equal to the cost of the Regional Transportation Improvement Project or portion thereof, as calculated by the RDIF Agency. The credit, or the credit and reimbursement together, shall be calculated at the time the applicant enters into an agreement for construction of the Regional Transportation Improvement Project. The credit shall be granted at the same time. Once calculated, the amount of reimbursement shall not increase for inflation nor shall it accrue interest.

B. Reimbursement for Projects Not Funded for Construction in the Strategic Expenditure Plan.

If an applicant constructs all or a part of a Transportation Improvement Project that is not, at the time the applicant enters into an agreement for construction of such Project, included in the strategic expenditure plan as a Project to be funded, the developer may be eligible for reimbursement from the Treasurer of the RDIF, provided that the Strategic Expenditure Plan is subsequently revised to include the improvement as a Project to be funded.

In such event, the amount of reimbursement shall be in an amount equal to the cost of the Transportation Improvement Project or portion thereof, as set forth in the strategic expenditure plan, and shall be calculated by the City and the Treasurer of the RDIF. The amount of the reimbursement shall be calculated when the applicant enters into an agreement for construction of the Transportation Improvement Project and posts bonds. Once calculated, the amount of reimbursement shall not increase for inflation nor shall it accrue interest. Reimbursement shall be from Regional Development Impact Fee revenues only, and the right to reimbursement shall be terminated ten years from the date the applicant entered into the agreement for construction of the Project.

16-5 List of Projects on the Regional Transportation System

The Regional Development Impact Fee shall be used to fund all or a portion of the list of Transportation Improvement Projects described in Exhibit “B” of the JPA.

16-6 Administrative Costs

The RDIF Agency may establish a processing fee or administrative surcharge to defray the reasonable cost of administration of the RDIF program by the RDIF Agency in an amount not to exceed 1% of the fees collected by the City in accordance with Government Code section 66014 and as otherwise provided by law.