Chapter 3.120
FOLSOM PLAN AREA DEVELOPMENT IMPACT FEES

Sections:

3.120.010    Purpose and finding.

3.120.020    Definitions.

3.120.030    Application of chapter.

3.120.040    Establishment and administration of the FPA development impact fee fund.

3.120.050    Payment of the FPA development impact fee.

3.120.060    Components of the FPA development impact fee.

3.120.070    Determination of fee amounts.

3.120.080    Fee adjustments.

3.120.090    Adoption in compliance with facilities plan.

3.120.100    Fee reimbursement agreements.

3.120.010 Purpose and finding.

The city council finds and declares that the purposes of this chapter are as follows:

A.    Proposed developments in the Folsom plan area create a need for additional public improvements, infrastructure, facilities and services with the addition of residents, businesses, and visitors.

B.    The general plan of the city and voter-approved Measure W require that new development within the Folsom plan area provides, in a time frame related to its development, an adequate level of public improvements, infrastructure, facilities and services in order to maintain adequate levels of public services and not adversely impact other areas of the city.

C.    The public facilities financing plan (PFFP) for the Folsom plan area, adopted by the city council on January 28, 2014, in Resolution No. 9298, sets forth a financing mechanism to fund approximately eight hundred seventy-seven million dollars in infrastructure and facility costs necessary to serve new developments in the Folsom plan area.

D.    The public facilities components in the PFFP constitute a net cost funded by fees of approximately two hundred forty-one million eight hundred forty thousand dollars, which include parks, trails, police and fire facilities and equipment, library and municipal center, transit services, solid waste services, general capital requirements, a new corporation yard and a community and aquatic center, some of which are to be financed through development impact fees.

E.    The nexus study demonstrates the need for the public facilities in the Folsom plan area, identifies the fair share allocation of the need for the additional public facilities to the Folsom plan area, and establishes a rational basis and relationship between the fees established under this chapter and the estimated costs to construct and acquire the necessary public facilities included within the nexus study in the Folsom plan area.

F.    The nexus study requires that the fees established under this chapter be calculated in a manner so as to pay for those required public facilities listed and identified in the nexus study and the PFFP, and equitably allocate the costs and burdens thereof throughout the areas approved for development within the Folsom plan area and, in appropriate cases, allocate costs between the Folsom plan area and other areas within the city of Folsom or the region.

G.    The fees established under this chapter are in addition to any other fees or charges, or taxes, required by law or city code as a condition of development in the Folsom plan area, subject to the applicable, vested provisions of the PFFP and approved development agreements applicable to the Folsom plan area.

H.    The fees established under this chapter are to be collected for their specified purposes in the PFFP for which individual accounts shall be established and funds appropriated, and for which a proposed construction and implementation schedule shall be adopted, and the fees identified herein are applicable only in the Folsom plan area.

I.    The failure to impose the conditions and regulations of this chapter relating to payment of the fees on building permits would jeopardize existing and future residents of the Folsom plan area, in that it would permit construction and development to proceed without adequate public facilities or means of financing such facilities.

J.    The transportation related fees imposed by this chapter are necessary in order to assure compliance with Measure W, adopted November 2, 2004, which provides that the city’s residents north of Highway 50 shall not pay fees for the construction of new transportation improvements required to serve the Folsom plan area. (Ord. 1234 § 2 (part), 2015)

3.120.020 Definitions.

The following definitions shall apply for purposes of this chapter:

A.    “City” means the city of Folsom.

B.    “City manager” means the city manager of the city of Folsom or his/her designee.

C.    “Corporation yard fee” means the development impact fee established under this chapter for the Folsom plan area’s fair share contribution towards the city’s new corporation yard.

D.    “Developer” means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities which seeks the city’s approval for all or part of a development.

E.    “Development” means the construction of any new structure in the Folsom plan area, including residential and nonresidential structures. Development does not include, with respect to residential development, remodeling, reconstruction or expansion of a structure that does not increase the number of unit(s) on the parcel and does not include, with respect to nonresidential development, remodeling, reconstruction, or installation of tenant improvements within a structure that does not increase the amount of square footage contained therein.

F.    “Dwelling unit” means a residential unit within a development project.

G.    “FPA development impact fee” means the development impact fees established under this chapter for the Folsom plan area, including the solid waste fee, the corporation yard fee, the transit fee, the Highway 50 improvements fee, the Highway 50 interchange fee, the Sacramento County transportation development fee, and the FPASP fee.

H.    “FPASP fee” (Folsom plan area specific plan) means the development impact fee established under this chapter for general capital facilities, library, municipal services center, police facilities, fire facilities, parks and trails for the Folsom plan area.

I.    “Finance director” means the city’s finance director or his/her designee.

J.    “Folsom plan area” (FPA) means the property within the city of Folsom located south of Highway 50 within the Folsom plan area specific plan adopted by the city council on June 28, 2011, in Resolution No. 8863.

K.    “Highway 50 improvements fee” means the development impact fee established under this chapter for the Highway 50 improvements contemplated in the Folsom plan area specific plan, and includes those improvements incorporated in the memorandum of understanding between the city and Caltrans, dated December 17, 2014.

L.    “Highway 50 interchange fee” means the development impact fee established under this chapter for the fair share contributions to Highway 50 interchanges contemplated in the Folsom plan area specific plan.

M.    “Nexus study” means the “Folsom Plan Area Specific Plan Fee and Stand Alone Fees Nexus Study” dated July 17, 2015, and to be adopted by city council resolution, and any update or supplements thereto as adopted by the city council and consistent with the PFFP. The nexus study and any updates or supplements thereto are on file in the office of the city clerk.

N.    “Public facilities financing plan” means the public facilities financing plan (PFFP) for the Folsom plan area adopted by the city council on January 28, 2014, in Resolution No. 9298.

O.    “Sacramento County transportation development fee” means the development impact fee established under Chapter 16.87 of the Sacramento County Code for purposes of providing an adequate level of roadway, transit, bikeway, walkway and other transportation facilities for new developments within Sacramento County, including the Folsom plan area.

P.    “Solid waste fee” means the development impact fee established under this chapter for solid waste facilities and equipment for the Folsom plan area.

Q.    “Transit fee” means the development impact fee established under this chapter for public transit facilities and equipment for the Folsom plan area. (Ord. 1234 § 2 (part), 2015)

3.120.030 Application of chapter.

This chapter shall apply to all new development projects in the Folsom plan area. (Ord. 1234 § 2 (part), 2015)

3.120.040 Establishment and administration of the FPA development impact fee fund.

A.    The FPA development impact fee fund is hereby established with the following subaccounts as follows:

1.    Solid waste fee;

2.    Corporation yard fee;

3.    Transit fee;

4.    Highway 50 improvements fee;

5.    Highway 50 interchange fee;

6.    Sacramento County transportation development fee; and

7.    FPASP fee.

B.    The fees collected and deposited into the sub-accounts of the FPA development impact fee fund shall collectively be referred to as the “FPA development impact fee.”

C.    The solid waste fee, the corporation yard fee, the transit fee, the Highway 50 improvements fee, the Highway 50 interchange fee, and the Sacramento County development fee, once collected, shall be accounted for separately and expended solely to finance the construction and acquisition of the public facilities and equipment identified for those fees in the PFFP.

D.    The fees established by this chapter are in addition to any other fees or charges required by law as a condition of development in the Folsom plan area, subject to the applicable, vested provisions of the PFFP and approved development agreements applicable to the Folsom plan area. (Ord. 1234 § 2 (part), 2015)

3.120.050 Payment of the FPA development impact fee.

The developer of any new development in the Folsom plan area shall pay the FPA development impact fee at or prior to the issuance of any building permit for a structure which is subject to this chapter. The amount of the fee shall be the then-current amount at the time of the building permit issuance, and shall be paid on a building-permit-by-building-permit basis. (Ord. 1234 § 2 (part), 2015)

3.120.060 Components of the FPA development impact fee.

The FPA development impact fee includes the following components:

A.    The Solid Waste Fee. The solid waste fee is to fund solid waste vehicles and waste container purchases required to maintain the level of municipal solid waste service in the Folsom plan area described in the PFFP and the nexus study.

B.    The Corporation Yard Fee. The corporation yard fee is to fund the cost of land for the corporation yard, and the fair share of the cost of facilities and construction of the city’s new corporation yard necessary to accommodate future growth in the city and the Folsom plan area, as described in the PFFP and the nexus study.

C.    The Transit Fee. The transit fee is to fund public transit improvements in the Folsom plan area, including, but not limited to, improvements to the transit corridor, transit parking, transit stops, and a share of the public transit vehicles, as described in the PFFP and the nexus study.

D.    The Highway 50 Improvements Fee. The Highway 50 improvements fee is to fund certain improvements to Highway 50 that serve the Folsom plan area such as, for example: Highway 50 segments from Sunrise to Hazel; Hazel to Folsom Boulevard; Folsom Boulevard to Scott Road; and the Hazel interchange modification, as described in the PFFP and the nexus study, and including but not limited to those improvements identified in the memorandum of understanding dated December 17, 2014, entered into between the city and Caltrans.

E.    The Highway 50 Interchange Fee. The Highway 50 interchange fee is to fund a fair share contribution toward certain Highway 50 interchanges that serve the Folsom plan area, such as, for example, the Empire Ranch Road interchange, the Oak Avenue Parkway interchange, the Scott/Bidwell interchange modifications, the Prairie City Road interchange modifications, and the Rowberry Drive Overcrossing, as described in the PFFP and the nexus study.

F.    The Sacramento County Transportation Development Fee. The Sacramento County transportation development fee is to fund a fair share contribution toward the improvements to roadway, transit, bikeway, walkway and other transportation facilities in Sacramento County that serve the Folsom plan area.

G.    The FPASP Fee. The FPASP fee is comprised of the following subcomponents:

1.    The general capital facilities component of the FPASP fee is to fund acquisition of general capital facilities, including, but not limited to: furniture, fixtures and equipment for city facilities (including fire and police facilities); police and fire vehicles and uniformed personnel turnout gear; public works vehicles and equipment; library materials, such as books, computers, and other materials; and other general capital needs of the city in the Folsom plan area, as described in the PFFP and the nexus study.

2.    The library component of the FPASP fee is to fund the construction of a branch library in the Folsom plan area, as described in the PFFP and the nexus study.

3.    The municipal services center component of the FPASP fee is to fund the construction of a municipal services center in the Folsom plan area that allows customers to make utility bill and license payments; register for recreation programs; obtain and file building planning and permit applications and employment applications; and request code enforcement and other public services, as described in the PFFP and the nexus study.

4.    The police component of the FPASP fee is to fund a police substation to serve the Folsom plan area, which is anticipated to include a public information counter area, conference rooms, lockers and showers, interview rooms and supervisor offices, as described in the PFFP and the nexus study.

5.    The fire component of the FPASP fee is to fund two new fire stations to serve the Folsom plan area, as described in the PFFP and the nexus study.

6.    The parks component of the FPASP fee is to fund the construction of one hundred twenty-five acres of parkland in the Folsom plan area comprised of two community parks, five neighborhood parks, and two local parks, as described in the PFFP and the nexus study.

7.    The trails component of the FPASP fee is to fund the construction of approximately thirty miles of trails in the Folsom plan area, which include trails, a Class I bike path, Class II bike lanes, intersection protection, trail bridges, under-crossings, and design costs, as described in the PFFP and the nexus study. (Ord. 1234 § 2 (part), 2015)

3.120.070 Determination of fee amounts.

The amounts of the FPA development impact fee shall be calculated and determined in accordance with the nexus study and this chapter, and subject to limitations set forth in approved development agreements applicable to the Folsom plan area, depending on the type of residential development or the size of nonresidential development, and shall be adopted and amended and periodically adjusted by resolution of the city council. (Ord. 1234 § 2 (part), 2015)

3.120.080 Fee adjustments.

A.    Inflationary Adjustments. In the absence of an intervening periodic adjustment or nexus study adjustment as provided below, the FPA development impact fee established by this chapter shall automatically be adjusted each fiscal year by a percentage equal to the change in construction costs since the prior fiscal year as determined by the finance director based upon the Construction Cost Index (CCI) for twenty cities and for San Francisco, as published in the most recent Engineering News Record (or similar publication). The Sacramento County transportation development fee shall be subject to the automatic adjustment set forth by the board of supervisors in Section 16.87.140 of the Sacramento County Code.

B.    Periodic Adjustments. Subject to the limitations in the development agreements applicable to the Folsom plan area, the amount of the FPA development impact fee may also be adjusted from time to time by resolution of the city council, upon recommendation by the finance director, based on changes in the actual or estimated costs of construction and/or acquisition of the facilities or improvements to be financed thereby.

C.    Nexus Study Adjustments. The FPA development impact fee may also be adjusted from time to time by resolution of the city council; provided, that the adjustment is supported by a new or updated nexus study and is consistent with limitations set forth in approved development agreements applicable to the Folsom plan area. (Ord. 1234 § 2 (part), 2015)

3.120.090 Adoption in compliance with facilities plan.

When the moneys in the FPA development impact fee accounts are disbursed for use, the fees shall be used to finance the planning, acquisition, construction, and development of the public facilities and equipment identified for those fees in the PFFP and the nexus study. To the extent sufficient fees are available, all public facilities and equipment financed by the fees shall be constructed or acquired in accordance with the priorities established or to be established by the city council after considering the PFFP and the city’s capital improvement program, as amended from time to time. (Ord. 1234 § 2 (part), 2015)

3.120.100 Fee reimbursement agreements.

A.    If, with the city’s approval, a landowner within the Folsom plan area elects to install any eligible public facilities or equipment financed by the FPA development impact fee (such as, for example, the construction of park improvements and/or installation of park equipment), a fee reimbursement agreement in a form acceptable to the city attorney may be entered into between the city and the landowner to reimburse the installing landowner for the costs thereof from the applicable FPA development impact fee.

B.    Any such fee reimbursement agreements for the construction of improvements and/or installation of equipment will include provisions for bonding, completion and acceptance of the improvements, warranties, priority for reimbursement, provisions to allow fee reimbursements to be converted to credits that can be applied against the applicable component of the FPA development impact fee within the Folsom plan area, and other provisions relating to reimbursement and administration of the reimbursement and credit.

C.    Fee credits related to improvements or equipment financed by the FPASP component of the FPA development impact fee may not be applied against any of the other components of the FPA development impact fee. Similarly, fee credits related to improvements or equipment financed by any other component of the FPA development impact fee may only be applied against that particular component of the FPA development impact fee. (Ord. 1234 § 2 (part), 2015)