Chapter 16.84
DEVELOPMENT IMPACT FEES
TO FINANCE THE COST OF TRANSPORTATION FACILITIES
Sections:
16.84.030 Establishment and administration of the city of Rancho Cordova transportation fund.
16.84.050 Imposition of transportation impact fee.
16.84.060 Payment of transportation impact fees.
16.84.065 Payment of transportation impact fee – Deferral.
16.84.080 Establishment of transportation impact fees and creation of areas.
16.84.090 Establishment of costs per unit for land uses within the city of Rancho Cordova.
16.84.100 Calculation of transportation impact fee.
16.84.110 Credit for construction of transportation facilities.
16.84.130 Annual program fee adjustment.
16.84.140 Alternative method and compliance with other laws.
Prior legislation: Ords. 19-2003, 27-2003, 32-2005 and 35-2005.
16.84.010 Purpose.
A. The general plan of the city of Rancho Cordova requires that areas chosen for urban expansion shall be capable of being provided, within a reasonable period of time, with an adequate level of public facilities including, but not limited to, roadway facilities and transit facilities.
B. The general plan further requires the preparation of a plan that identifies a mechanism for financing those facilities necessary to serve urban development in areas designated for urban expansion. The general plan also contains additional policies for supporting funding and use of developer dedications, development fees, and other means to pay for an acceptable level of transportation facilities.
C. The purpose of this chapter is to implement the general plan requirements set forth in subsections (A) and (B) of this section and to use the authority in Article XI, Section 7 of the California Constitution by imposing development fees to fund the cost of certain transportation facilities, the need for which is directly or indirectly generated by the type and extent of development proposed in the city of Rancho Cordova on which the fees will be imposed.
D. It is the further purpose of this chapter to require that adequate provision is made for developer-financed public facilities within the city of Rancho Cordova as a condition to any rezoning and prior to approval of certain permits within the city. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].
16.84.020 Definitions.
“Areas” means those geographic areas established for public facilities financing purposes within the city of Rancho Cordova as depicted in the nexus study for the transportation development impact fee program. A detailed map of each area is depicted in the nexus study and is on file with the city public works department, and such maps are incorporated by reference herein.
“Building permit” means the permit issued or required for residential development, nonresidential development, commercial development, or other development within the city, pursuant to and as further defined by the city of Rancho Cordova building code.
“City” means the city of Rancho Cordova.
“City of Rancho Cordova transportation administration fund” means that special interest-bearing trust fund established pursuant to RCMC 16.84.040.
“City of Rancho Cordova transportation fund” means that special interest-bearing trust fund established pursuant to RCMC 16.84.030.
“Commercial development” means buildings constructed for the purpose of occupancy by retail, services, and other principally nonoffice businesses located on sites zoned SC shopping center, LC limited commercial, TC travel commercial, AC auto commercial, or GC general commercial in accord with the city of Rancho Cordova zoning code or designated commercial or commercial mixed use (CMU). For purposes of this chapter, residential dwellings constructed on sites designated CMU or another commercial zone pursuant to the zoning code are residential development rather than commercial development.
“Costs” means amounts spent, or authorized to be spent, in connection with the planning, financing, acquisition and development of a public facility or infrastructure including, without limitation, the costs of land, construction and inspection, engineering, administration, and consulting fees.
“Council” or “city council” means the city council of the city of Rancho Cordova.
“Department” means the city of Rancho Cordova public works department.
“Development impact fee” or “transportation development impact fee” or “transportation impact fee” means the fee levied by this chapter and due upon the approval of one or more building permits.
“Development unit” means a dwelling unit, for residential development, or square foot of building floor area, for nonresidential development.
“Director” means the director of the Rancho Cordova public works department.
“Facilities” means those public facilities designated in the Rancho Cordova transportation capital improvement plan and transportation development impact fee program.
“Fee resolution” means the resolution and fee schedule adopted by the city council, as may be amended from time to time, that approves the amount of the transportation development impact fees.
“Improvement plan” means the site plan of property proposed for development showing all required improvements that must be approved by the Rancho Cordova public works department pursuant to Chapter 12.03 RCMC prior to the issuance of a building permit for the property.
“Land use category” means detached dwelling units, attached dwelling units, multifamily, commercial, office, or industrial/manufacturing uses as further defined in the fee resolution.
“Multifamily residential units” means all units within a structure that has five or more units, all of which are offered for rent to the general public, or all units within a structure that has five or more attached units that (1) are available for sale to individual owners, and (2) have living areas less than or equal to 1,200 square feet.
“Nonresidential development” means a subdivision map, parcel map, or permit for the original construction, grading or installation of buildings other than single-family detached homes, single-family attached homes, duplexes, townhomes, condominiums, apartments, manufactured homes and mobile homes, or improvements thereto.
Nonresidential development includes commercial development. Typically, nonresidential development consists of buildings to be occupied by retail, service, or other commercial businesses or by offices as regulated by the city of Rancho Cordova zoning code, but may also include buildings for use by churches, day care centers, private schools, and other institutional uses. Mixed-use buildings consisting of both dwelling units and commercial and/or office areas will have the respective building areas treated as either residential development or nonresidential development for purposes of this chapter.
“Office development” means buildings constructed for the purpose of occupancy by principally business and professional office uses located on sites zoned BP business and professional office in accord with the city of Rancho Cordova zoning code or designated commercial or CMU commercial mixed use.
“Planning director” means the planning director of the city of Rancho Cordova.
“Priority list” means those facilities included in the transportation capital improvement plan and transportation development impact fee program, as identified in order of priority by the director, to avoid substantial congestion levels on key roadways.
“Program fee per development unit” means the development impact fee per development unit for a particular category of facilities. Such program fees, identified in the fee resolution, were established using an allocation of transportation system costs, as identified in the transportation capital improvement plan and development impact fee program, and dwelling unit equivalents (DUEs) based on land use categories identified in the nexus study developed for the transportation development impact fee program.
“Programmed cost” means the estimated cost of constructing a facility based upon the unit costs for each construction item plus fixed percentages for engineering, permits and construction contingency as set forth in the city of Rancho Cordova transportation development impact fee program and its public facilities project cost estimates, as periodically updated and adopted by resolution of the council.
“Residential development” means a subdivision map, parcel map, or permit for the original construction, grading or installation of dwelling units for residential use including detached and attached housing for owner or rental occupancy. For purposes of this chapter, residential development includes construction of or improvements to buildings or portions of buildings consisting of dwelling units constructed on sites designated CMU or another commercial zone. Institutional uses or other nonhousing development allowed by special use permit to be constructed on sites zoned for residential use are nonresidential development for purposes of this chapter.
“Single-family attached residential development” means all units within a structure that has two to four attached units, whether such units are offered for rent or for sale to individual owners, and all units within a structure that has five or more attached units that (1) are available for sale to individual owners, and (2) have a living area greater than 1,200 square feet.
“Single-family detached residential development” includes all single-family detached residential units.
“Transportation capital improvement plan” means the projects identified and the cost estimates prepared, and as may be updated, for the transportation system facilities identified in the general plan circulation element and on the roadway sizing diagram within the city limits that are needed to meet traffic demands as identified in the nexus study.
“Transportation development impact fee program” or “transportation impact fee” means the fee schedule, including any amendments thereto, adopted by resolution by the council for financing of designated public facilities to serve the city of Rancho Cordova, including, but not limited to, a designation of those facilities to be constructed with the development impact fees collected pursuant to this chapter, the priority list (“priority list”) for commencement of construction, the estimated cost of construction of the facilities and the total number of dwelling unit equivalents within each area of the city of Rancho Cordova as established. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].
16.84.030 Establishment and administration of the city of Rancho Cordova transportation fund.
A. There is hereby created by the department of finance in the city treasury a special interest-bearing trust fund entitled the city of Rancho Cordova transportation fund. All amounts collected from transportation impact fees from Area 1 and Area 2 pursuant to this chapter shall be placed in said fund and shall be expended by the city of Rancho Cordova or its successor agency solely to pay the costs identified in the transportation capital improvement plan and/or development impact fee program and nexus study.
B. The transportation fund shall be administered by the director. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].
16.84.040 Establishment and administration of the city of Rancho Cordova transportation administration fund.
A. There is hereby created by the department of finance in the city treasury a special interest-bearing trust fund entitled the city of Rancho Cordova transportation administration fund. All administration fees collected from Area 1 and Area 2 pursuant to this chapter shall be placed in said fund and shall be expended by the city of Rancho Cordova or its successor agency solely to pay the costs associated with administering the city of Rancho Cordova transportation impact fee program.
B. Commencing with the updated nexus study adopted February 7, 2022, administrative costs are incorporated into the transportation development impact fee. The administrative portion of the transportation development impact fee shall be expended by the city of Rancho Cordova or its successor agency solely to pay the costs associated with administering the transportation development impact fee program.
C. The transportation administration fund shall be administered by the director. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].
16.84.050 Imposition of transportation impact fee.
No change in a land use zoning designation shall be approved within the city of Rancho Cordova unless payment of the transportation impact fees established by this chapter is required of the property owner as a condition of such approval. No building permit shall be approved for property within the city of Rancho Cordova unless the development fees for that property are paid as required by this chapter. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].
16.84.060 Payment of transportation impact fees.
The transportation impact fees imposed pursuant to this chapter shall be paid by the property owner to the department, in an amount calculated pursuant to RCMC 16.84.100. The fees shall be calculated upon the approval of subdivision maps and shall be paid upon issuance of building permits. For projects that are subject to building permits, but not subdivision map approval, the fees shall be both calculated and paid upon issuance of the building permits. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].
16.84.065 Payment of transportation impact fee – Deferral.
Notwithstanding any other requirement in RCMC 16.84.060, due to the continued effects of the nationwide slowdown in the housing market and the city’s desire to encourage quality development, the city manager, or his/her designee, shall have the authority to consider and approve requests to defer payment of development impact fees imposed pursuant to this chapter to the earlier of 24 hours prior to scheduling a final inspection, issuance of a temporary or final certificate of occupancy, or one year from the date the deferral is approved. [Ord. 11-2023 § 3 (Exh. A); Ord. 8-2019 § 2; Ord. 4-2016 § 2; Ord. 3-2015 § 2; Ord. 3-2013 § 1; Ord. 32-2010 § 3; Ord. 10-2009 § 3; Ord. 14-2008 § 2].
16.84.070 Adoption of the transportation system capital improvement plan and compliance with priority list of city of Rancho Cordova transportation impact fee program.
A. The council shall by resolution adopt the city of Rancho Cordova transportation capital improvement plan of the city of Rancho Cordova transportation system development impact fee program. The council shall review the transportation capital improvement plan not less than annually and may amend it by resolution at its discretion.
B. With the exception of facilities approved by the director for construction by a property owner pursuant to RCMC 16.84.120, all facilities shall be funded in accordance with the priority list established for the city of Rancho Cordova transportation development impact fee program. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].
16.84.080 Establishment of transportation impact fees and creation of areas.
A. A separate transportation impact fee is hereby established for each of the following categories:
1. New development area transportation fee;
2. Infill area transportation fee.
B. There are hereby created two initial areas of the city of Rancho Cordova, as shown in the nexus study for the transportation development impact fee program and incorporated herein by reference.
C. Future areas of the transportation development impact fee program may be created as additional public facilities financing plans are implemented for remaining undeveloped areas outside of the city of Rancho Cordova that may be annexed to the city in the future. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].
16.84.090 Establishment of costs per unit for land uses within the city of Rancho Cordova.
A. Fees per unit for various land uses identified in the fee resolution were established using an allocation of transportation system costs as identified in the transportation system capital improvement plan and total additional trip miles based on land use categories identified in the nexus study developed for the transportation impact fee program.
B. For specific land uses not identified in the fee resolution, the cost per dwelling unit equivalent established by the nexus study and the trip generation rates established by the Institute of Traffic Engineers or equivalent method shall be used to calculate the fee per dwelling unit. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3. Formerly 16.84.100].
16.84.100 Calculation of transportation impact fee.
A. For residential development, the transportation impact fee shall be calculated by multiplying the number of units per land use category by a per unit cost as identified in the transportation impact fee program and fee resolution.
B. For nonresidential development, the transportation impact fee shall be calculated by multiplying the number of building square feet per land use category by a per square foot cost as identified in the transportation development impact fee program and fee resolution.
C. For the purpose of calculating the transportation impact fee for land use categories not specifically named in the transportation impact fee program and fee resolution, the planning director is hereby authorized to determine the land use category that corresponds most directly to the land use in question. Alternatively, the planning director can determine that no land use category adequately corresponds, and request the public works director to determine the transportation impact fee. Said transportation impact fee will be determined using the applicable trip generation factors as found in the Institute of Transportation Engineers Trip Generation Manual or equivalent method.
D. For the purpose of calculating the regional fee, the regional fee shall be calculated as the difference between the transportation impact fee for Area 1 or Area 2 (depending on the location of the property at issue) and the transportation component of the specific plan fee, if any. If no specific plan fee exists, then the regional fee and the transportation impact fee are equivalent.
E. The transportation impact fees shall be paid by the property owner in the amount as calculated pursuant to subsections (A) through (D) of this section for the categories of facilities established by RCMC 16.84.080, and shall include an additional administrative fee per building permit which will be calculated as provided in the transportation development impact fee program nexus study.
F. For the purpose of calculating transportation impact fees pursuant to subsections (A) through (D) of this section for properties with an approved use permit which significantly changes the underlying use of the site or properties within a special planning area, the director is hereby authorized to determine the per-unit or per-square-foot costs for each fee category that corresponds most directly to the use and density.
G. For the purpose of calculating transportation impact fees pursuant to subsections (A) through (D) of this section for building permits for land use categories not specifically named in this chapter or the transportation development impact fee program, the director is hereby authorized to determine the per-unit or per-square-foot costs for each fee category that corresponds most directly to the use and density. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3. Formerly 16.84.090].
16.84.110 Credit for construction of transportation facilities.
A. Upon application by the property owner or his authorized agent, the director may authorize the construction of any transportation facilities, or portions thereof, in order of priority as designated on the priority list for the transportation development impact fee program in lieu of all, or a portion of, the transportation impact fee required by this chapter. If so authorized, the credit toward transportation impact fees, excluding the administrative fee, to be provided to the property owner for such in-lieu construction shall be equal to 80 percent of the programmed cost of the facility, as set forth in the transportation system development impact fee program in effect at the time when the in-lieu construction is so authorized, including, but not limited to, unit prices, quantities and project descriptions.
Prior to credit being given and/or issuance of any of the approvals set forth in RCMC 16.84.060 (e.g., approvals of building permits, subdivisions or zoning amendments), the construction of any facility authorized by this section must either be accepted by the department, or the property owner must post security for the complete performance of the construction in a form acceptable to the director and the city attorney.
B. Upon acceptance of the completed facility and after reconciliation of the final facility costs, the remaining 20 percent of the programmed cost as designated in the transportation system development impact fee program may be issued as a credit balance to the property owner that may be utilized within the city of Rancho Cordova as determined by the director.
C. Where the amount of the credit is less than the amount of the transportation impact fee otherwise applicable to the development in question, the property owner must pay to the city the difference in accordance with RCMC 16.84.060.
D. Where the amount of the credit is greater than the amount of the transportation impact fee, the property owner shall be paid the difference only from the applicable transportation fund within a reasonable time after the project is accepted by the department pursuant to RCMC 16.84.120 in order of priority on the priority list in the transportation system development impact fee program when funds are available.
E. Where a facility is proposed for construction by the property owner, the director at his discretion may either (1) provide the property owner with a credit pursuant to this section, or (2) enter into a reimbursement agreement with the property owner pursuant to RCMC 16.84.120. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].
16.84.120 Reimbursement for construction of transportation projects in advance of the transportation system development impact fee program priority list schedule.
A. Upon application by the property owner or his authorized agent, the director may enter into a reimbursement agreement authorizing the construction of any transportation facilities, or portions thereof, designated in the transportation system development impact fee program. In addition to the requirements of subsection (D) of this section, the agreement shall set forth the amount to be reimbursed, the time and manner in which payments are to be made, and shall state that reimbursement by the city will only be made from the applicable transportation fund when funds are available.
B. The amount of reimbursement shall be the actual cost of the facility up to the programmed cost of the facility as set forth in the transportation system development impact fee program in effect at the time the construction contract is awarded for that specific facility. The time of reimbursement shall be the end of the fiscal year in which the facility is scheduled for construction, based on the priority list in the transportation system development impact fee program, or as different timing is otherwise authorized by the director.
C. By entering into a reimbursement agreement, a property owner is not relieved of the obligation to pay the transportation impact fees in the manner and amount specified by this chapter.
D. If the director enters into an agreement authorized by subsection (A) of this section, or credit agreement as authorized by RCMC 16.84.110(C), the agreement shall provide that:
1. The general fund of the city is not liable for payment of any obligations arising from the agreement;
2. The credit or taxing power of the city is not pledged for the payment of any obligations arising from the agreement;
3. The landowner shall not compel the exercise of the city taxing power or the forfeiture of any of its property to satisfy any obligations arising from the agreement; and
4. The obligation arising from the agreement is not a debt of the city, nor a legal or equitable pledge, charge, lien, or encumbrance, upon any of its property, or upon any of its income, receipts, or revenues, and is payable only from the transportation impact fees deposited in the applicable transportation fund.
E. The property owner or his authorized agent shall apply for reimbursement as set forth in subsections (A) through (D) of this section no later than four years after the transportation project is constructed and accepted. The property owner shall waive the right of reimbursement for construction costs payable under this section when the reimbursement is not applied for within said four-year limitation. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].
16.84.130 Annual program fee adjustment.
Commencing January 1, 2014, and thereafter each year no later than January 15th, the finance director, or his or her designee, shall authorize the adjustment of the program fee per development unit for each type of development in each fee category, which shall be adjusted according to the methodology described in the transportation development impact fee program nexus study.
The estimated cost of the facilities used in the transportation system capital improvement program and for calculating credits and reimbursements pursuant to RCMC 16.84.110 and 16.84.120 shall be adjusted annually using the same adjustment factor. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 5-2012 § 1; Ord. 3-2011 § 1; Ord. 5-2010 § 1; Ord. 7-2009 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].
16.84.140 Alternative method and compliance with other laws.
A. This chapter is intended to establish a supplemental method for funding the cost of certain facilities the need for which is expected to be generated by the level and type of development proposed in the city. Except as provided in Section 4 of the ordinance codified in this chapter (continuance in effect of roadway and transit development fees established by Sacramento County), the provisions of this chapter shall not be construed to limit the power of the council to impose any other fees or exactions or to continue to impose existing ones on development within the city, but shall be in addition to any other fees, exactions or other requirements that the city is authorized to impose, or has previously imposed, as a condition of approving plans, rezonings or other entitlements within the city pursuant to state and local laws. In particular, individual property owners shall remain obligated to fund, construct, and/or dedicate the improvements, public facilities and/or pay other exactions authorized or required by, but not limited to: (1) the city public works department improvement standards; (2) the Sacramento County municipal services agency improvement standards; (3) the Quimby Act (Section 66477 et seq. of the Government Code) and implementing ordinances (Chapter 22.40 RCMC); (4) school impact fees (Section 65970 et seq. of the Government Code) and implementing ordinances; and (5) Sacramento County drainage fees (county water agency Ordinance No. 1). Any credits or repayments pursuant to RCMC 16.84.110 and 16.84.120 shall not include credits or repayment for the funding, construction or dedications described in this section.
B. The construction of facilities by a private owner pursuant to RCMC 16.84.110 and 16.84.120 shall be performed and contracted for only as required by law, including, but not limited to, compliance with the department’s improvement standards and requirements for public works, if applicable to the particular facility. [Ord. 11-2023 § 3 (Exh. A); Ord. 3-2013 § 1; Ord. 6-2006 § 3; Ord. 33-2005 § 3; Ord. 24-2005 § 3].