Chapter 3.40
DEVELOPMENT IMPACT FEE PROGRAM

Sections:

3.40.010    Intent and Policy.

3.40.020    Definitions.

3.40.030    Development Impact Fees.

3.40.031    Wastewater Infrastructure Facilities Fee.

3.40.032    Storm Drainage Facilities Fee

3.40.033    Streets, Traffic Signals and Bridges Fee.

3.40.034    Equestrian Trails Development Fee.

3.40.035    Water Infrastructure Facilities Fee.

3.40.036    General Government Facilities Fee.

3.40.037    Fire Protection Facilities Fee.

3.40.038    Parkland and Open Space Acquisition Fee.

3.40.039    Animal Control Facilities, Public Library Facilities and Public Meeting Facilities Fee

3.40.040    Resolution Approving Capital Improvement Plan and Establishing the Amounts of Development Impact Fees.

3.40.050    Determination of Fees.

3.40.060    Payment of Fees.

3.40.070    Delinquency, penalty and interest.

3.40.080    Administration of Development Impact Fees.

3.40.090    Annual Review of Development Impact Fees.

3.40.100    Consideration In Lieu of Fee; Credits.

3.40.110    Appeals.

3.40.120    Development Impact Fee Nonexclusive.

3.40.010 Intent and Policy.

The City Council of the City of Norco finds that new development of land within the City imposes increased demands on the City’s public facility infrastructure and service requirements. This Chapter is intended to establish a Development Impact Fee Program whereby the owner or land developer will be required to pay a development impact fee or provide other consideration for the purpose of defraying the costs of public expenditures which will benefit such new development. The development impact fees established herein shall be imposed in an amount based upon the gross square footage of nonresidential developments, number of residential dwellings units or some similarly fair and reasonable basis in order to finance public facilities, the demand for which is generated by new development in the City of Norco. Development impact fees shall not exceed the cost of providing capital improvements for which the need is substantially attributable to those developments that pay the fees. The development impact fees shall be spent on new or enlarged capital facilities improvements that substantially benefit those development that pay the fees.

3.40.020 Definitions.

Unless the contact shall require otherwise, the definitions set forth in this section shall apply to the following terms as used in this Chapter:

(a)    “Building Permit” means the permit required for new construction and additions pursuant to Chapter 15.04 of the Norco Municipal Code. The term “Building Permit,” as used herein, shall not be deemed to include permits required for remodeling, rehabilitation, or other improvements to an existing structure or rebuilding a damaged or destroyed structure, or voluntary demolition and rebuilding of an existing structure within one year, provided there is no increase in gross floor area of commercial or industrial development or in number of dwelling units resulting therefrom. (Ord. 618, Sec. 3, 1990, Ord. 734, 1998)

(b)    “Capital Improvement Plan” means a comprehensive plan adopted by resolution of the City Council of the City of Norco which shall identify specific Capital Improvements to be undertaken, and shall indicate the approximate location, size, time of availability, and estimates of cost for all facilities or improvement to be financed with development impact fees and other necessary features.

(c)    “Capital Improvements” shall mean any and/or all of the public facilities listed below, including acquisition of land, design and construction, improvements, equipping, and installing of same and which facilities are identified in the Capital Improvements Plan to be financed in whole or in part by the imposition of a Development Impact Fee:

(1)    Sanitary sewers and wastewater treatment facilities.

(2)    Storm drainage and flood control improvements.

(3)    Surface transportation improvements.

(4)    Equestrian-Pedestrian trails.

(5)    Water treatment and distribution facilities.

(6)    General governmental capital facilities.

(7)    Fire facilities and equipment.

(8)    Parks and open space lands and recreational facilities.

(9)    Other facilities of which the cost may be substantially attributed to new development.

(d)    “City” means the City of Norco.

(e)    “Commercial Development” means any development designated or intended to be occupied or used for business or commercial purposes, including sleeping rooms in hotels and motels without kitchens or kitchen facilities.

(f)    “Council” means the City Council of the City.

(g)    “Development” shall means any man-made change to improved or unimproved real property, the use of any principal structure or land, or any other activity that required issuance of a Building Permit.

(h)    “Development Impact Fee” shall mean any monetary exaction, other than a tax or special assessment, which is charged to an applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, subject to the exceptions set forth in California Government Code Section 66000 et seq. (Ord. 618, Sec. 3, 1990)

(i)    “Industrial Development” means any development designed or intended for manufacturing, processing, research, warehousing or similar uses.

(j)    “Residential Unit” means a single family dwelling including a mobile home park unit as defined in the Mobile home Parks Act (California Health and Safety Code Section 18200 et seq.), a dwelling unit in a duplex, apartment house or dwelling group, and any other place designated for human occupancy which contains a kitchen, but it shall not mean nor include a non-enclosed paved area adjoining a dwelling and commonly referred to as a portion or a porch.

3.40.030 Development Impact Fees.

In order that the burdens of financing Capital Improvements may be borne by all of the development projects benefited thereby, Development Impact Fees chargeable to such development projects to be paid by the owner or land developer thereof shall be imposed in accordance with the provisions of this Chapter 3.40. Imposition of Development Impact Fees identified in this Chapter is dependent upon adoption by the Council of a Capital Improvement Plan.(Ord. 836, Sec. 5, 2005)

Every person constructing any new residential, commercial or industrial development shall pay to the City the following Development Impact Fees:

.031

Wastewater Infrastructure Facilities Fee

.032

Storm Drainage Facilities Fee

.033

Streets, Traffic Signals and Bridges

.034

Equestrian Trails Development Fee

.035

Water Infrastructure Facilities Fee

.036

General Government Facilities Fee

.037

Fire Protection Facilities

.038

Parkland and Open Space Acquisition

.039

Animal Control Facilities, Public Library Facilities and Public Meeting Facilities

(836, Amended, 08/03/2005)

3.40.031 Wastewater Infrastructure Facilities Fee.

In order to implement the goals and objectives of the General Plan of the City, to protect the health, safety and general welfare of the City’s population and to mitigate additional burdens placed on the existing wastewater collection and treatment systems created by new development, a wastewater infrastructure facilities fee will be imposed on all new development in the City to pay for the development’s fair share of the construction cost of certain public improvements. The wastewater infrastructure facilities fee shall provide funding for the construction of wastewater treatment plant improvements and expansions, wastewater interceptors and other related projects. (Ord. 618, Section 3, 1990)

3.40.032 Storm Drainage Facilities Fee

In order to implement the goals and objectives of the General Plan of the City and the City’s Master Plan of Drainage, to protect the health, safety and general welfare of the City’s population and to mitigate the storm water run-off impacts caused by new development, a storm drainage facilities fee will be imposed on all new development in the City to pay for the Development’s fair share of the construction cost of certain public improvements. The storm drainage facilities fee shall be used to finance the cost of storm drainage projects including, without limitation, channels and storm drains. (Ord. 836, Sec. 6, 2005)

(836, Amended, 08/03/2005)

3.40.033 Streets, Traffic Signals and Bridges Fee.

In order to implement the goals and objectives of the General Plan of the City, to protect the health, safety and general welfare of the City’s population and to mitigate the additional traffic burdens created by new development to the City’s arterial and collector street system, a streets, traffic signals and bridges fee will be imposed on all new development in the City to finance the costs of street improvements, including widening and reconstruction, traffic signals, street landscaping, intersection improvements and freeway interchange improvements. (Ord. 836, Sec. 7, 2005)

(836, Amended, 08/03/2005)

3.40.034 Equestrian Trails Development Fee.

In order to implement the goals and objectives of the General Plan of the City, to protect the health, safety and general welfare of the City’s population and to mitigate the impacts of development and population increase on the City’s equestrian-pedestrian trail system, an equestrian trails development fee will be imposed on all new development in the City. The equestrian trails development fee shall provide funds for the acquisition, improvement and development of equestrian-pedestrian trails. (Ord. 836, Sec. 8; 2005)

(836, Amended, 08/03/2005)

3.40.035 Water Infrastructure Facilities Fee.

In order to implement the goals and objectives of the General Plan of the City, to protect the health, safety and general welfare of the City’s population and to adequately service new development with adequate supplies of potable water, a water infrastructure facilities fee will be imposed on all new development in the City. The water infrastructure facilities fee shall provide funds for the construction of facilities to insure a continuing supply of potable water including pump stations, water reservoir facilities, wells, treatment facilities and waterlines.

3.40.036 General Government Facilities Fee.

In order to implement the goals and objectives of the General Plan of the City, and to provide adequate public services and support for the well-bring and general welfare of the City’s population, a general government facilities fee will be imposed on all new development in the City. The general government facilities fee shall be used to finance general government capital improvements such as a new government center, additional library facilities and other general capital needs. (Ord. 618, Sec. 3, 1990)

3.40.037 Fire Protection Facilities Fee.

In order to implement the goals and objectives of the General Plan of the City, and to protect the health, safety and general welfare of the City’s population, and to mitigate impacts of new development on the level of fire service capacity in existing facilities, a fire protection facilities fee will be imposed on all new development in the City. The fire protection facilities fee shall be used to finance new fire stations and fire equipment. (Ord. 836, Sec. 9, 2005; Ord. 618, Sec. 3, 1990)

(836, Amended, 08/03/2005)

3.40.038 Parkland and Open Space Acquisition Fee.

In order to implement the goals and objectives of the General Plan of the City, and to protect the health, safety and general welfare of the City’s population, and to mitigate additional impacts of new development on the availability of open space land and park and recreational facilities a parkland and open space acquisition fee will be imposed on all new development in the City. The parkland and open space acquisition fee shall provide funds for the acquisition, improvement, and development of park and open space land and recreational facilities. (Ord. 836, Sec. 10, 2005; Ord. 618, Sec. 3, 1990)

(836, Amended, 08/03/2005)

3.40.039 Animal Control Facilities, Public Library Facilities and Public Meeting Facilities Fee

In order to implement the goals and objectives of the General Plan of the City, to protect the health, safety and general welfare of the City’s population and to mitigate the impacts of development and population increase on the City’s animal control services, an animal control facilities fee will be imposed on all new development in the City. The animal control facilities fee shall provide funds for the expansion of the animal control facilities and to increase the number of response and investigator’s vehicles.

In order to implement the goals and objectives of the General Plan of the City, to protect the health, safety and general welfare of the City’s population and to mitigate the impacts of development and population increase on the City’s library system, a public library facilities fee will be imposed on all new development in the City. The public library facilities fee shall provide funds to construct additional square fee to the library facility and to purchase additional volumes when necessary to ensure that the City’s citizens have access to and enjoyment of the library space and collection.

In order to implement the goals and objectives of the General Plan of the City, to protect the health, safety and general welfare of the City’s population and to mitigate the impacts of development and population increase on the City’s public meeting facilities, a public meeting facility fee will be imposed on all new development in the City. The public meeting facilities fee shall provide funds for the construction of additional community center space. (Ord. 836, Sec. 11, 2005)

(836, Amended, 08/03/2005)

3.40.040 Resolution Approving Capital Improvement Plan and Establishing the Amounts of Development Impact Fees.

The Council shall by resolution (1) adopt a Capital Improvements Plan identifying by category the specific Capital Improvements to be financed in whole or in part by Development Impact Fees and (2) establish the amount of the Development Impact Fees specified in this Chapter, which resolution shall be consistent with the requirements of Assembly Bill 1600 (Chapter 927 Statutes 1987) as set forth in California Government code Section 66000, et seq. and shall include the following:

(a)    Identify the purpose of the fee;

(b)    Identify the use to which the fee will be put;

(c)    Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed;

(d)    Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed; and

(e)    Determine how there is a reasonable relationship between the specific amount of the fee imposed on a development project and the cost of the needed public facilities attributable to that development project.

The City Council may by resolution amend the Capital Improvement Plan and/or the Development Impact Fees upon completion of studies by City staff or its independent consultants or upon determination of the availability of funds or financing to pay the cost of the Capital Improvements. (Ord. 618, Sec. 3, 1990)

3.40.050 Determination of Fees.

Upon the receipt by the city Public Works Department of an application by a land owner or developer for any development approval, the Public Works Department shall determine and give written notice to the landowner or developer of the applicability of this Chapter to said development, the amount, if any, of developable land to which such approval relates and the amount of the fee(s) payable pursuant to the Resolution adopted pursuant to Section 3.40.040, which may be expressed in terms of a formula. The Department of Public Work need not give written notice to the landowner or developer in the event that it determines that no fee relating to such development is payable pursuant to this Chapter and the Resolution.

3.40.060 Payment of Fees.

After the adoption by the Council of a resolution establishing the amounts of the Development Impact Fees, no building permit, with the exception of residential, shall be issued and no development shall be permitted on any land within the City unless and until the Development Impact Fees relating to such development and established by the Resolution adopted pursuant to Section 3.40.040 has been paid or provisions has been made for such payment to the satisfaction of the City’s Director of Public Works, or unless a determination has been made by the City Department of Public Works that no fee is payable pursuant to this Chapter. (Ord. 733, 1998)

Development Impact Fees on residential development shall not be required to be paid until the date of the final inspection. The developer shall, as a condition of issuance of the building permit, execute a contract to pay the fees. The contract shall contain a legal description of the property and shall be recorded in the Office of the County Recorder. The contract shall constitute a lien for the payment of the fees, and shall be enforceable against successors in interest to the property. A release of obligation shall be recorded when the obligation is paid in full. (Ord. 733, 1998)

3.40.070 Delinquency, penalty and interest.

If construction of any residential, commercial or industrial development is commenced without payment of the applicable Development Impact Fees herein set forth and without obtaining a building permit therefore, such fees shall become delinquent at the time such construction is commenced. There shall be added to such delinquent fees a penalty of 25 percent, which shall thereupon become payable. The fees and penalty shall bear interest at the rate of fifty-eight one-hundredths (.58) of one percent per month until paid.

3.40.080 Administration of Development Impact Fees.

All of the fees collected pursuant to this Chapter shall be deposited into separate capital improvement accounts. These funds along with any penalty and interest due hereunder and any interest earnings thereon shall be used solely for the financing of capital improvements identified in the Capital Improvements Plan adopted pursuant to this chapter, or to reimburse the City for those identified improvements constructed by the City with funds advanced by the City from other sources. (Ord. 618, Sec. 3, 1990)

3.40.090 Annual Review of Development Impact Fees.

On or about July 1st of each year, the City Engineer shall review the estimated costs of the described capital improvement projects, the continued need for those improvements and the types of development pending or anticipated and for which the development impact fees are charged. The City Engineer shall report his finding to the Council at a noticed public hearing and recommend any adjustment to the fees or other action as may be needed. The Council shall annually review and may, in its discretion, cause an adjustment to be made in the amount of such fees established by a resolution pursuant to Section 3.40.040.

3.40.100 Consideration In Lieu of Fee; Credits.

The provisions of Section 3.40.030 and 3.40.060 hereof to the contrary notwithstanding, upon application by an owner or land developer, the Council may accept consideration of in lieu of the development impact fees required pursuant to this chapter, as provided:

(a)    The City Council, upon recommendation of the Director of Public Works, finds that the substitute consideration proposed has a value equal to or greater than such fee;

(b)    The substitute consideration is in a form acceptable to the Council.

A developer or property owner may elect to construct a capital improvement listed in the Capital Improvement Plan. If the developer or owner elects to construct such improvement, the developer or property owner must enter into an agreement with the City approved by the Director of Public Works, prior to issuance of any building permit. The agreement must establish the estimated cost of the improvement, the schedule for initiation and completion of the improvement, a requirement that the improvement be completed to City standards, and such other terms and conditions as deemed necessary by the City Director of Public Works. The City must review the improvement plan, verify costs, and time schedule, determine if the improvement is an eligible improvement, and determine the amount of the applicable credit for such improvement to be applied to the otherwise applicable development impact fee prior to issuance of any building permit. In no event may the City provide a refund for a credit that is greater than the applicable development impact fee(s). No credits shall be given for the construction of local on-site facilities required by zoning, subdivision or other City regulations.

3.40.110 Appeals.

Any landowner or developer aggrieved by the determinations of the City Department of Public Works hereunder may appeal said determinations by submission of a written notice of protest addressed to the Council within 30 days after the date of the written notice by the Department of Public Works pursuant hereto. The notice of appeal shall set forth in reasonable detail the position of the aggrieved party and the requested relief. If the notice of appeal is accompanied by a bond or other sufficient surety satisfactory to the City Attorney in an amount equal to the development impact fee due as calculated by the City Department of Public Works, the chief building official shall issue the building permit. The filing of an appeal shall not stay the collection of the development impact fee due unless a bond or other sufficient surety has been filed.

The Council shall consider such appeal within 90 days after the submission of the notice of protest. The Council may request additional information from the aggrieved landowner or developer or from City staff. The Council may modify or amend the determinations of the Department of Public Works in any manner consistent with the intent and policy of this chapter and the resolution adopted pursuant to Section 3.40.040.

3.40.120 Development Impact Fee Nonexclusive.

The development impact fees established herein are additional and supplemental to, and not in substitution of, any other requirements imposed by the City on the development of land or the issuance of building permits. The development impact fee program is intended to be consistent with and to further the objectives and policies of the General Plan of the city, the Capital Improvements Plan, and other city policies, ordinances, and resolution by which the City of Norco seeks to insure the provisions of public facilities and services in conjunction with the development of land. In no event shall a property owner be obligated to pay for capital improvements in an amount in excess of the amount calculated pursuant to this chapter and the resolution adopted pursuant to Section 3.40.040; provided, however, a property owner or developer may be required to pay, pursuant to City ordinances, regulations, or policies for other public improvements, including, without limitation subdivision improvements, in addition to the development impact fee as specified herein. (Ord. 618, Sec. 3, 1990)