O 525 C.S.
ORDINANCE NO. 525 C.S.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE CONSOLIDATING PROVISIONS OF THE ARROYO GRANDE
MUNICIPAL CODE REGARDING DEVELOPMENT IMPACT FEES
WHEREAS, the City of Arroyo Grande has analyzed the impacts of development on
certain capital facilities; and,
WHEREAS, the City wishes to maintain an acceptable level of service for the present
and future residents and businesses of the City of Arroyo Grande; and
WHEREAS, a reasonable nexus and relationship exists between new development and
the public facilities needed to maintain the existing level of public services for existing
and future residents and businesses in the City of Arroyo Grande pursuant to California
Government Code Sections 66000, et seq.; and,
WHEREAS, the proposed ordinance promotes the public health, safety, and general
welfare.
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS
FOLLOWS:
SECTION 1: The following portions of the Arroyo Grande Municipal Code are hereby
repealed.
A. Article 3, Chapter 2, Title 3.
B. Article 5, Chapter 2, Title 3.
C. Section 6-7.22(a)(2).
SECTION 2: Article 6, Chapter 2, Title 3 of the Arroyo Grande Municipal Code is
hereby amended as shown in Exhibit "A" attached hereto and incorporated herein by
this reference as though set forth in full.
ORDINANCE NO. 525 C.S.
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SEcTION 3: If any section, subsection, subdivision, paragraph, sentence, clause or
phrase of this Ordinance or any part thereof is for any reason held to be unlawful or
unconstitutional, such decision shall not affect the validity of the remaining portion of
this Ordinance or any part thereof. The City Council hereby declares that it would have
passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase
thereof, irrespective of the fact that anyone or more section, subsection, subdivision,
parag~ph, sentence, clause or phrases be declared unlawful or unconstitutional.
SECTION 4: A summary of this Ordinance shall be published in a newspaper pUblished
and circulated in the City of Arroyo Grande at least five (5) <;fays prior to the City Council
meeting at which the proposed Ordinance is to be adopted. A certified copy of the full
text of the proposed Ordinance shall be posted in the office of the Director of
Administrative Services/Deputy City Clerk. Within fifteen (15) days after adoption of the
Ordinance, the summary with the names of those City Council members voting for and
against the Ordinance shall be published again, and the Director of Administrative
Services/Deputy City Clerk shall post a certified Copy of the fun text of such adopted
Ordinance.
SECTION 5: This ordinance shall take effect sixty (60) days after its final passage.
On motion of Council Member Ferrara, seconded by Council Member Lubin, and on the
following roll call vote to wit:
AYES: Council Members Ferrara, Lubin, Runels, Dickens, and Mayor Lady
NOES: None
ABSENT: None
the foregoing Ordinance was adopted this 27th day of March, 2001.
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ORDINANCE NO. 525 C.S.
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MICHAELA. LADY, MAn~
ATTEST:
eM! ~
ORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK
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APPROVED AS TO CONTENT:
~:d
E E ADAMS, CITY MANAGER
APPROVED AS TO FORM:
~~~NEY
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ORDINANCE NO. 525 C.S.
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EXHIBIT "A"
Article 6. Development Impact Fees
Section 3-2.601 Purpose
The Council declares that the fees required to be paid hereby are established for the
purpose of protecting the public health, safety and general welfare, and implementing
the policies of the General Plan, by providing adequate public facilities to support
orderly development.
Section 3-2.602 Definitions
Unless otherwise required by the context, the following definitions shall govern the
construction of the article:
(a) "Commercial development" means the development or use of land for any retail,
office, service commercial or other business purpose.
(b) "Council" means the City Council of the City of Arroyo Grande.
(c) "Development" or "development project" means any project undertaken for the
purpose of development, and includes a project involving the issuance of a permit for
construction or reconstruction, but not a permit to operate.
(d) "Dwelling Unit" means a structure, or portion of a structure that is used for separate
residential occupancy by an individual, a family or group of unrelated individuals.
(e) "Impact fee" means a monetary exaction charged to the applicant in connection with
approval of a development project for the purpose of defraying all or a part of the cost of
the public facilities related to the development project. This definition does not include
fees specified in Government Code Section 66477, or fees for processing applications
for permits or approvals.
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ORDINANCE NO. 525 C.S.
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(f) "Imposition of Fees" occurs when they are imposed or levied on a specific
development.
(g) "Multi-family residential development" means development or use of land for
residential purposes involving more than one dwelling unit in a single structure.
(h) "Public facilities" means public improvements, public services or community
amenities.
(i) "Single family residential" means development or use of land for residential
purposes involving no more than one dwelling unit in a single structure.
Section 3-2.603 Fees - ImDosition and ADDlication
This article establishes development impact fees which are imposed as a condition of
approval upon all development projects for which a building permit is issued on or after
the effective date of this ordinance. Those impact fees are hereby established for the
following public facilities:
(a)Fire protection fees
(b )Police facilities fees
(c)Community center fees
(d)Park improvement fees
(e) Water facilities fees
(f) Traffic signalization fees
(g) Transportation facilities fees
These impact fees are established in order to pay for the capital costs of public facilities
reasonably related to the needs of new development in the City. At least once every
five years, the Council shall review the basis for the impact fees to determine whether
the fees are still reasonably related to the needs of new development. In establishing
these fees, the Council has considered the effect of the fees with respect to the City's
housing needs as established in the housing element of the General Plan.
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ORDINANCE NO. 525 C.S.
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Section 3-2.604 Fees to be Set bv Resolution
The amount of fee assessments shall be determined by resolution adopted by the City
Council. Fees shall be adjusted annually by modifying the adopted value up or down in
conformance with the Engineering News Record Construction Cost Index. The factor
for the adjustment of the fees shall be calculated and established each January by the
Director of Financial Services, utilizing the following formula:
Factor = 1 + Current Index - Base Index for Date of AdoDtion
Base Index for Date of Adoption
Section 3-2.605 Payment of Fees
Except as otherwise provided in Section 66007 of the Government Code, impact fees
shall be paid to the City at the time a building permit is issued. In cases where payment
of all or part of the required fee is deferred at the time of building permit issuance, the
Community Development Director may require that the applicant, at the applicant's
expense, execute a contract with the City to pay all deferred impact fees prior to final
inspection and/or issuance of a certificate of occupancy for the project. The contract
shall specify the amount of the unpaid fee and a legal description of the property
affected. It shall be recorded in the office of the County recorder, and shall constitute a
lien for the payment of the fees, which shall be enforceable against the successors in
interest of the property owner. When impact fees are paid in full, the City, at the
expense of the applicant or property owner, shall execute a release of any lien securing
those impact fees.
Section 3-2.606 Protests
Any party subject to the fees established by this chapter may protest the imposition of
those fees by meeting all of the following. requirements:
(a) Tendering any required payment in full or providing satisfactory evidence of
arrangements to pay the fee when due or ensure performance of the conditions
necessary to meet the requirements of the imposition of the fee.
ORDINANCE NO. 525 C.S.
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(b) Serving written notice of protest on the City Council which notice shall contain all of
the following information:
1. A statement that the required payment is tendered, or will be tendered when
due, under protest.
2. A statement informing the City Council of the factual elements of the dispute
and the legal theory forming the basis for the protest.
(c) Serving the written notice of protest no later than ninety (90) days after the date of
the imposition of the fees.
The City Council shall consider that protest at a hearing to be held within sixty (60) days
after serving the written notice of protest. The decision of the City Council shall be final.
Section 3-2.607 ExemDtions
The fees imposed under this article shall not apply to the following:
(a) The United States or to any agency or instrumentality thereof, the State of California
or any County or other political subdivision of the State of California.
(b) Remodeling or alteration of an existing residential building, but only if the number of
dwelling units is not increased or the use changed.
(c) That portion of a structure that existed before the addition of dwelling units or the
enlargement of floor area in a non-residential structure. If a structure is destroyed or
demolished, and replaced within two years from the date of demolition, the impact fees
shall be based on the service requirements of the new development less the service
requirements of the development which it replaced.
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ORDINANCE NO. 525 C.S.
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Section 3-2.608 Credits and Reimbursement
If the applicant for approval of any development project is required by the City, as a
condition of approval to construct facilities, the cost of which has been used in the
calculation of impact fees which apply to that project, the applicant shall receive a credit
against those impact fees, up to the amount charged for the same type of facility. If the
cost of the improvements constructed by the applicant exceeds the amount of the
impact fees charged to the development project for the same type of facility, the excess
cost shall be reimbursed to .the applicant from other impact fee revenues within a
reasonable time. To qualify for reimbursement, the applicant must enter into a
reimbursement agreement with the City, and any such agreement must specify the
amount to be reimbursed and the approximate schedule of the reimbursement.
Section 3-2.609 DisDosition and Use of the Fees
The Director of Financial Services shall establish a separate fund or account for each
type of facility listed in Section 3-2.603. All impact fees collected by the City shall be
deposited in the fund or account established for the specific type of facility for which the
fee is collected. Any interest earned on funds deposited in a fund or account shall be
deposited in that fund or account.
Funds deposited in those accounts shall be used only to pay for design and
construction, including construction administration, of projects identified in resolutions or
other formal City Council action adopted pursuant to Section 3-2.603 as the basis for
the impact fees, or for reimbursements as provided in Section 3-2.608.
Section 3-2.610 Refunds
If impact fees collected by the City have not been expended or designated for the
intended purpose within five (5) years following their collection, the City shall either
refund those fees as provided in Section 66001 of the Government Code, or make
findings as required by that Section to retain the fees.
The refund provision of this chapter shall apply only to monies in possession of the City
and need not be made with respect to any bonds, letters of credit or other items given to
secure payment at a future date.
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OFFICIAL CERTIFICATION
I, KELLY WETMORE, Director of Administrative Services/Deputy City Clerk of
the City of Arroyo Grande, County of San Luis Obispo, State of California, do
hereby certify under penalty of perjury, that the attached Ordinance No. 525 C.S.
is a true, full, and correct copy of said Ordinance passed and adopted at a
regular meeting of the City Council of the City of Arroyo Grande on the 27th day
of March, 2001.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 30th
day of March, 2001.
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MORE, DIRECTOR OF ADMINISTRATIVE SERVICES!
DEPUTY CITY CLERK
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