Chapter 5.02 CITYWIDE DEVELOPMENT IMPACT FEES

Development impact fees are hereby established on new development or conversions within the city of Placentia to pay for public improvements related to civic improvement projects, public safety, sewer projects, traffic mitigation, parks and storm drainage. In the following sections, the city council sets forth the specific amount of the development fee for each type of public improvement project.

At least every five years, the city council shall review these fees to determine whether the fee amounts are reasonably related to the impacts of development and whether the public improvement projects described in the city's capital improvement projects list are still needed. Failure to undertake this review shall not invalidate the imposition of the fees.

(Ord. O-2017-10 § 3, 2017)

§ 5.02.030 Limited use of fees.

The revenues raised by payment of these development impact fees shall each be placed in separate and special impact fund accounts, and such revenues, along with any interest earnings on each separate account, shall be used solely to:

Pay for the city's future construction of those public improvement projects at least partially allocable to new development or conversions as described in the city's capital improvement projects list; or

Reimburse the city for those described or listed projects constructed by the city with funds advanced by the city from other sources; or

Reimburse developers who have been required or permitted by Section 5.02.110 to install such listed facilities which are oversized with supplemental size, length or capacity.

(Ord. O-2017-10 § 3, 2017)

§ 5.02.040 Imposition of fees.

Development impact fees shall be imposed on:

New development; and

Conversions, as provided in this chapter.

Development impact fees shall be paid by the owner of the property on which new development or conversion is to occur. The fees for a new development or conversion shall be collected by the city in full prior to the issuance of the first building permit(s) for such development or conversion, unless payment at a later time is mandated by Government Code Section 66007. If a building permit(s) is not required for a new development or conversion, payment of development impact fees shall be collected in full by the city prior to the issuance of the first development permit(s) for such development or conversion, unless payment at a later time is mandated by Government Code Section 66007. Development impact fees for new developments that include a subdivision map with multiple buildings approved as part of the development shall be allowed to pay city development impact fees in phases prior to the issuance of the first building permit of each phase if requested in writing by the developer. This arrangement shall require either a development agreement or a fee deferral agreement on a form approved by the director of development services or designee. Payment of said fees in phases concurrent with the issuance of the first building permit of each phase pursuant to a development agreement of fee deferral agreement must be requested by the owner or developer concurrently with the entitlement(s) being considered by the same approval body that is considering the development (e.g., city council or planning commission).

Except as otherwise provided herein, square footage of residential and nonresidential buildings shall be measured by exterior dimensions. Unfinished attics, crawlspaces, and basements shall not be assessed until converted and finished as usable floor space.

A building or structure consisting of non-usable floor space, e.g., a garage, carport or storage shed, shall not be deemed to be part of the residential building for the purpose of determining the square footage of the residential building. Such ancillary structures shall require the payment of storm drainage and public safety impact fees; additional impact fees shall not be required until converted to usable floor space.

(e)

Each single-family residential unit within a multifamily residential building or development project shall be deemed to be a separate building for which a fee is imposed and shall be paid.

(f)

Additions to an existing building shall be deemed to occur whenever the amount of usable floor space is increased, or whenever new building space is constructed where no structures existed as part of the existing building, whether or not the total building floor area is increased by the new construction.

(g)

The first 70 square feet of additions or conversions to an existing building in a two year period shall be exempt from all fees except public safety impact fees and storm drainage impact fees.

(h)

No development impact fee shall be imposed more than once for the same floor space.

(i)

Each tenant space in a multi-use building or development project shall be deemed to be a separate use for which a fee is imposed and shall be paid.

(Ord. O-2017-10 § 3, 2017; Ord. O-2021-02 § 2, 2021; Ord. O-2021-08 § 2, 2021)

§ 5.02.050 Public safety impact fees.

Findings. The city council finds:

Numerous items of capital equipment are urgently needed for the city's police and fire protection facilities to maintain the existing level of police and fire protection services to all areas of the city of Placentia.

New development or conversions within the city of Placentia result in increased usage of residential, commercial, industrial, and other affected properties, which thereby increases the service requirements and the capital equipment requirements of the city's police and fire safety services. Such increased usage does not ordinarily result from mere subdivision or parcel map divisions of existing properties in the absence of new development or conversions.

The city must continue to fund capital additions to its public safety system. These capital improvements include expanding the police and fire department facilities and equipment. These additional capital expenditures are necessary to maintain an acceptable level of public safety service within the next 15 years.

In the absence of the imposition of a public safety impact fee upon all building permits, the additional capital expenses necessary to maintain an acceptable level of public safety services for the entire city would be unfairly imposed upon the owners and residents of the existing buildings and improvements within the city of Placentia.

New development or conversions without the payment of fees imposed by this section would not be fair to the owners and occupants of existing buildings within the city of Placentia.

The facts and evidence presented in the city's impact fee study establish that there exists a reasonable relationship between the need for the fire and police department and other public safety improvements and the impacts of the types of new development or conversions for which a corresponding fee is charged. A reasonable relationship or nexus also exists between the fee's use and the type of new development or conversions for which the fee is charged.

Schedule of Public Safety Impact Fees. A public safety impact fee shall be imposed on all new development or conversions and shall apply to both residential and nonresidential construction within the city of Placentia. See Section 5.02.180 "Schedule of citywide development impact fees."

§ 5.02.060 Park and recreation impact fees.

There is hereby established and created a fund of the city entitled "public safety impact fund" and all revenues derived from and monies collected under this section, including accrued interest thereon, shall be deposited in such fund. The public safety impact fund is established for the sole purpose of providing monies for the acquisition, construction, and reconstruction of facilities and equipment and other capital purposes needed for the city's fire department and the city's police department in providing police and fire protection services.

(Ord. O-2017-10 § 3, 2017)

Findings. The city council finds:

Additional park facilities are needed to accommodate future growth and maintain an acceptable level of the existing park and recreational facilities for all areas of the city of Placentia.

New development or conversions within the city of Placentia result in increased usage of the existing park and recreational facilities throughout the city, which thereby increases the service requirements and the capital equipment requirements of the city's parks and recreation facilities. Such increased usage does not ordinarily result from mere subdivision or parcel map divisions of existing properties in the absence of new development or conversions.

The city must continue to fund park and recreation improvements within the city. These park and recreation improvements include developing additional parklands, open spaces, and recreational facilities. These additional capital expenditures are necessary to maintain the public health, safety, and welfare by assuring an acceptable level of the park and recreation facilities is available in Placentia within the next 15 years.

In the absence of the imposition of a park improvement impact fee upon new development or conversions, the additional capital expenses necessary to maintain an acceptable level of civic services for the entire city would be unfairly imposed upon the owners and residents of the existing buildings and improvements within the city of Placentia.

New development or conversions without the payment of fees imposed by this section would not be fair to the owners and occupants of existing buildings within the city of Placentia.

The facts and evidence presented in the city's impact fee study establish that there exists a reasonable relationship between the need for parks and other recreation facilities and the impacts of the types of new development or conversions for which a corresponding fee is charged. A reasonable relationship or nexus also exists between the fee's use and the type of new development or conversions for which the fee is charged.

Schedule of Park and Recreation Impact Fees. A park and recreation impact fee shall be imposed on all new development or conversions and shall apply to all residential construction within the city of Placentia. See Section 5.02.180 "Schedule of development impact fees."

There is hereby established and created a fund of the city entitled "park and recreation impact fund" and all revenues derived from and monies collected under this section, including accrued interest thereon, shall be deposited in such fund. The park and recreation improvement impact fund is established for the sole purpose of providing monies for the acquisition, construction, and reconstruction of playgrounds, community facilities, recreation facilities and equipment and other capital purposes needed for providing park and recreation services.

(Ord. O-2017-10 § 3, 2017)

§ 5.02.070 Quimby in-lieu fees.

Schedule of Quimby Fees. In-lieu fees shall be imposed and/or the dedication of parkland shall be required as a condition of approval of tentative map or parcel map pursuant to Chapter 22.54. See Section 5.02.180 "Schedule of development impact fees."

(Ord. O-2017-10 § 3, 2017)

§ 5.02.080 Sewer impact fees.

Findings. The city council finds:

Placentia has a sewer system that consists of a collection system including public sewers and interceptors leading to the wastewater treatment plant and to the disposal system.

New development or conversions within the city of Placentia have a significant impact on the sewer system.

The city must continue to fund capital improvements to its sewer system. These capital improvements include updating or replacing sewer lines. These additional capital expenditures are necessary to maintain an acceptable level of sewer service within the next 15 years.

New development or conversions within the city result in increased usage of residential, commercial, industrial, and other affected properties, which thereby increases the service requirements and the capital equipment requirements for the city's sewage disposal system. Such increased usage does not ordinarily result from mere subdivision or parcel map divisions of existing properties in the absence of new development or conversions.

In the absence of the imposition of a sewer impact fee upon new development or conversions, the additional capital expenses necessary to maintain an acceptable level of sewer service for the entire city would be unfairly imposed upon the owners and residents of the existing buildings and improvements within the city of Placentia.

New development or conversions without the payment of fees imposed by this section would not be fair to the owners and occupants of existing buildings within the city of Placentia.

(7)

Part of the costs associated with the capital improvements to the sewer system are apportioned to new development and conversions to accommodate increased usage of the sewer system by new residents and businesses.

(8)

The facts and evidence presented in the city's impact fee study establish that there exists a reasonable relationship between the need for the sewer system improvements and the impacts of the types of new development or conversions for which a corresponding fee is charged. A reasonable relationship or nexus also exists between the fee's use and the type of new development or conversions for which the fee is charged.

Schedule of Sewer Impact Fees.

Every person connecting to the city's sewer system or converting unusable to usable floor space in or adding to existing buildings which are already connected to the city's sewer system shall pay to the city a sewer impact fee. See Section 5.02.180 "Schedule of development impact fees."

Every person converting an existing use from one use category (residential, commercial, industrial or office) to another use category shall pay a sewer impact fee equal to the difference, if any, between the fees calculated for the existing and new uses as set forth in Section 5.02.180 "Schedule of development impact fees."

No sewer impact fee shall be assessed on conversions to another use within the same use category. No person shall be entitled to a refund on conversions from a higher rate use category to a lower rate use category.

In addition to the above charges, all expenses and costs of making a sewer connection shall be borne by the person making the connection. No connection shall be made to a public sewer except by the city or by written permission from the city.

There is hereby established and created a fund of the city entitled "sewer impact fund" and all revenues derived from and monies collected under this section, including accrued interest thereon, shall be deposited in such fund. The sewer impact fund is established for the sole purpose of providing monies for the acquisition, construction, and reconstruction of sanitation and sewage facilities, to repay principal and interest on bonds issued for the construction or reconstruction of such sanitary or sewage facilities, and to repay federal and state loans or advances made to the city for the construction or reconstruction of sanitary or sewage facilities and infrastructure.

(Ord. O-2017-10 § 3, 2017)

§ 5.02.090 Storm drainage impact fees.

Findings. The city council finds:

Numerous items of capital infrastructure are urgently needed for the city's drainage system to maintain an acceptable level of storm drainage from all areas of the city of Placentia.

New development within the city of Placentia results in increased usage of residential, commercial, industrial, and other affected properties, which thereby increases the amount of impervious surfaces and irrigation of landscaping which create greater need for and usage of drainage systems within the city. Such increased drainage and usage of the system do not ordinarily result from mere subdivision or parcel map divisions of existing properties in the absence of new development.

The city must continue to fund capital improvements to its storm drainage system. These capital improvements include constructing storm drains and storm sewers within the city and conducting a storm drainage and monitoring study. These additional capital expenditures are necessary to maintain an acceptable level of storm drainage within the city in the next 15 years.

In the absence of the imposition of a storm drainage impact fee upon new development, the additional capital expenses necessary to maintain an acceptable level of the city's drainage system for the entire city would be unfairly imposed upon the owners and residents of the existing buildings and improvements within the city of Placentia.

New development without the payment of fees imposed by this section would not be fair to the owners and occupants of existing buildings within the city of Placentia.

The facts and evidence presented in the city's impact fee study establish that there exists a reasonable relationship between the need for the drainage improvements and the impacts of the types of development for which a corresponding fee is charged. A reasonable relationship or nexus also exists between the fee's use and the type of development for which the fee is charged.

Schedule of Storm Drainage Impact Fees.

A storm drainage impact fee shall be imposed on new construction of buildings, driveways, parking lots, sidewalks, walkways, patios, decks, and other similar structures, and upon any construction of additions or conversions to an existing building that increase the impervious surface footprint of the parcel. See Section 5.02.180 "Schedule of development impact fees."

§ 5.02.100 Traffic mitigation impact fees.

There is hereby established and created a fund of the city entitled "storm drainage impact fund" and all revenues derived from and monies collected under this section, including accrued interest thereon, shall be deposited in such fund. The storm drainage impact fund is established for the sole purpose of providing monies for the acquisition, construction, and reconstruction of facilities and equipment and for other capital purposes needed for the city's storm drainage system and for additional drainage and monitoring studies.

(Ord. O-2017-10 § 3, 2017)

Findings. The city council finds:

New development or conversions within the city of Placentia result in increased usage of residential, commercial, industrial, and other affected properties, which thereby generates additional traffic within the city and will contribute to the usage and degradation of the existing street infrastructure in the city of Placentia.

The purpose of this fee is to finance circulation improvements to reduce the impacts of traffic generated by new development within the city.

The city must continue to fund capital improvements to its traffic circulation system. These capital improvements include building new roads, bridges, and traffic control facilities and equipment. These additional capital expenditures are necessary to maintain an acceptable level of traffic circulation and the city's roadway system within the next 15 years.

In the absence of the imposition of a traffic mitigation impact fee upon new development or conversions, the additional capital expenses necessary to maintain acceptable traffic circulation for the entire city would be unfairly imposed upon the owners and residents of the existing buildings and improvements within the city of Placentia.

The construction of new development or conversions without the payment of fees imposed by this section would not be fair to the owners and occupants of existing buildings within the city of Placentia.

The facts and evidence presented in the city's impact fee study establish that there exists a reasonable relationship between the need for the traffic improvements and the impacts of the types of new development or conversions for which a corresponding fee is charged. A reasonable relationship or nexus also exists between the fee's use and the type of new development or conversions for which the fee is charged.

Schedule of Traffic Mitigation Impact Fees.

A traffic mitigation impact fee shall be imposed on new development or conversions within the city of Placentia. See Section 5.02.180 "Schedule of development impact fees."

Every person converting an existing use from one use category (residential, commercial, industrial or office) to another use category shall pay a traffic mitigation impact fee equal to the difference, if any, between the fees calculated for the existing and new uses as set forth Section 5.02.180 "Schedule of development impact fees."

No traffic mitigation impact fee shall be assessed on conversions to another use within the same use category. No person shall be entitled to a refund on conversions from a higher rate use category to a lower rate use category.

§ 5.02.110 Developer construction of facilities.

There is hereby established and created a fund of the city entitled "traffic mitigation impact fund" and all revenues derived from and monies collected under this section, including accrued interest thereon, shall be deposited in such fund. The traffic mitigation impact fund is established for the sole purpose of providing monies for the construction and reconstruction of facilities and equipment and other capital purposes needed for traffic circulation improvements in and around the city of Placentia.

(Ord. O-2017-10 § 3, 2017)

Whenever a developer is required, as a condition of approval of a subdivision, development permit or building permit, to construct a public facility described in the capital improvement projects list, which facility is determined by the city to have supplemental size, length or capacity over that needed to address the impacts of that development, and when construction is necessary to ensure efficient and timely construction of the facilities network, a reimbursement agreement with the developer and a credit against the applicable impact fee, which would otherwise be charged pursuant to this chapter on the development project, shall be offered. The reimbursement amount shall not include the portion of the improvement needed to provide services or mitigate the need for the facility or the burdens created by the development.

A developer who installs an off-site improvement as a special mitigation measure for a project which is identified on the capital improvement projects list to be funded at least partially by impact fees may claim credit on such a fee not to exceed the impact fee payable for the development project. The city's public works director is authorized to allow such credit.

If a developer is dissatisfied with the decision of the city's public works director regarding a reimbursement agreement or a credit of development impact fees, the developer shall appeal for relief to the city council by filing a written appeal with the city clerk within 15 days after the disputed decision. The appeal shall state in sufficient detail the basis for the claimed credit. The decision of the city council shall be final.

(Ord. O-2017-10 § 3, 2017)

§ 5.02.120 Fee adjustment.

A developer of any project, including any new building or addition to or conversion of any existing building, subject to the fees described in Sections 5.02.050 through 5.02.100 may apply to the city council for a reduction or adjustment of the fee(s), or a waiver of the fee(s), based upon the absence of any reasonable relationship between the nature of the impact of the development and either the amount of the fee charged or the type of facilities to be financed.

The application for a fee reduction, adjustment, or waiver shall be made in writing and filed with the city clerk not later than 20 days after the filing of the application for a building permit.

The application shall state in detail the factual basis for the claim of waiver, reduction, or adjustment. The city council shall consider the application at a hearing held within 30 days after the filing of the fee adjustment application. The decision of the city council shall be final.

"City of Placentia impact fee study"

If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment or reduction of the fee.

(Ord. O-2017-10 § 3, 2017)

§ 5.02.130 Definitions.

"Building permit"

shall mean the permit required or issued by the city of Placentia for the construction, improvement or remodeling of any structure pursuant to the city of Placentia's building codes.

"City"

shall mean the governmental body managing the administrative operations of the city of Placentia.

"City of Placentia"

shall mean all property located within the geographical area within the city of Placentia's city limit line.

shall mean "Development Impact Fee Nexus Study Report" which is the study, including any amendments or revisions thereto, for the financing of facilities and services designated under the capital improvement projects list for the city of Placentia. This study includes, but is not limited to, a designation of those facilities to be constructed with the impact fees collected under this chapter, the estimated costs of constructing those facilities or providing the services designated therein, and the total use factors or other criteria utilized to arrive at an allocation of the cost of the facilities to the different types of land uses and to new development. Specifically, it means the document and addendum prepared by city staff and SCI Consulting Group ("SCI") entitled "City of Placentia Citywide Development impact Fees Nexus Study" dated August 2017.

"Conversion"

shall mean converting from unusable to usable floor space, or converting the existing use to another use.

"Developer"

shall mean any person who is the owner or authorized agent of an owner of any new development within the city of Placentia.

"Development permit"

shall mean the permit required or issued by the city of Placentia for the grading, site improvement, construction, or improvement of property associated with new development and conversions.

"Dwelling unit"

shall mean a residential dwelling within the city of Placentia. Each single-family residential unit within a multifamily residential building or development project shall be deemed to be a separate dwelling unit.

"New development"

shall mean the original construction of residential, commercial, industrial or other nonresidential buildings, or the addition of usable floor space within existing residential or nonresidential buildings, or the construction of new accessory buildings.

"Owner"

shall mean the legal owner(s) or the authorized agent(s) for any owner of property being developed.

"Usable floor space"

shall mean any interior space constructed or converted to be used for human occupancy in accordance with the Uniform Building Code.

(Ord. O-2017-10 § 3, 2017; Ord. O-2021-02 § 2, 2021)

§ 5.02.140 Development agreements.

The terms of any development approvals or building permit(s) may be negotiated as part of a development agreement which may require a developer to provide or finance any public projects deemed agreeable to both the developer and the city council. Development constructed under the terms of an approved development agreement may be exempted from the payment of any of the impact fees required under this chapter.

(Ord. O-2017-10 § 3, 2017)

§ 5.02.160 Annual inflationary adjustment.

The fees established in this chapter shall be automatically adjusted annually commensurate with changes in construction costs. Therefore, the fees shall be automatically adjusted annually effective every July 1 by an amount equal to the percentage change in the Construction Cost Index for Los Angeles as published by the Engineering NewsRecord, or its successor publication for the preceding 12 months. The annual fee adjustment shall be based on April to April Construction Cost Index for Los Angeles as published by the Engineering News-Record for the preceding 12 months, with the exception of the 2022 fee update which shall be based on February 2021 to April 2022 Construction Cost Index for Los Angeles as published by the Engineering News-Record.

(Ord. O-2017-10 § 3, 2017; Ord. O-2021-02 § 2, 2021)

§ 5.02.180 Schedule of development impact fees.

The schedule of the citywide development impact fees imposed by this chapter shall be established and adjusted from time to time by resolution of the city council. The impact fees shall not exceed the cost of mitigating the impact of development projects in the city.

(Ord. O-2021-02 § 2, 2021)

§ 5.02.190 Library development impact fees.

Findings. In order to mitigate the impacts to library facilities caused by new development within the city, the Placentia library district and the city council have determined that development impact fees are needed to finance the cost of new or expanded library facilities to meet the needs of the resident population and nonresident employees generated by new development in the city within the district's jurisdiction. There is a reasonable relationship between the amount of the library impact fee and the cost of library facilities attributable to the development on which the fee is imposed. In establishing the fees described in this section, the city council finds the fees adopted to be consistent with state law (California Government Code Section 66000 et seq.)

Description of Fees.

Library development impact fees are hereby established on new within the city of Placentia to be used to fund the cost of new or expanded library facilities and administrative costs associated with the library impact fee program.

For residential library impact fees, library facility costs are defined on a per capita basis and applied to residential land use categories according to their respective average household size. For nonresidential library impact fees, costs are defined on a per employee basis based on a residential equivalent factor and nonresident employee factor and then applied to nonresidential land use categories according to their respective average employment density.

At least every five years, the city council, in conjunction with the Placentia library district, shall review these fees to determine whether the fee amounts are reasonably related to the impacts of development.

Limited Use of Fees. Fee revenue will be deposited into a separate library impact fee account or fund in a manner to avoid any commingling of the fees with other revenues and funds. The fee revenue will be restricted to the allowable uses described in the Nexus Study. These actions ensure that a new development project paying the library impact fee will benefit from its uses. The uses of the library development impact fees are reasonably related to the types of development projects on which the fees are imposed. The uses shall be used to fund new and expanded library facilities to meet the additional demand generated by the residents of the city and employees created by new development. The allowable uses for fees are set forth in the Nexus Study.

Imposition of Fees.

Development impact fees shall be imposed on new development.

Development impact fees shall be paid by the owner of the property on which new development is to occur. The fees shall be collected by the prior to the issuance of the building or development permit(s) for such development, whichever occurs later, unless payment at a later time is mandated by Government Code Section 66007.

Except as otherwise provided herein, square footage of residential and nonresidential buildings shall be measured within the perimeter of a structure. Unfinished attics, crawlspaces, and basements shall not be assessed until converted and finished as usable floor space.

For residential uses, a building or structure consisting of non-usable floor space, e.g., garage, carports, walkways, overhangs, patios, enclosed patios, detached storage structures, or similar areas are excluded and shall not be deemed to be part of the residential building for the purpose of determining the square footage of the residential building.

For non-residential uses, a building or structure consisting of non-usable floor space, e.g., any storage areas incidental to the principal use of the development, garages, unenclosed walkways, or utility or disposal areas, or similar areas are excluded and shall not be deemed to be part of the non-residential building for the purpose of determining the square footage of the non-residential building.