This chapter shall be known and cited as "development fee procedures.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
This chapter applies to all development fees imposed by the city as a condition of development approval for the purpose of financing capital improvements, the need for which is attributable to such development, unless expressly herein exempted, including, but not limited to:
(a)
Traffic fees imposed pursuant to Article 18A of this chapter; and
(b)
Park fees imposed pursuant to Article 18B of this chapter; and
(c)
Public facilities fees imposed pursuant to Article 18C of this chapter.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
The provisions of this chapter do not apply to:
(a)
Taxes or special assessments levied by the city;
(b)
Fees for processing development applications or approvals;
(c)
Fees for enforcement of or inspections pursuant to regulatory ordinances;
(d)
Fees collected under development agreements adopted pursuant to California Government Code Section 65864 et seq.;
(e)
Fees collected pursuant to California Government Code Section 66477 as money in lieu of park land dedication;
(f)
Fees imposed pursuant to a reimbursement agreement by and between the city and a property owner or developer for that portion of the cost of a capital improvement paid by the property owner or developer which exceeds the need for the capital improvement created by the development.
(Ord. No. 89-12, §§ 1, 2, 4-12-89; Ord. No. 2024-02, 2/7/2024)
As used in this article, the following words and phrases shall have the meanings ascribed to them in this section:
means the property owner, or duly designated agent of the property owner, of land on which a request for development approval is received by the city.
means the geographic area within which development fees are collected and expended for a particular type of capital improvement serving development projects within such area.
means the determination of the amount of development fees to be collected based on the need for capital improvements related to a particular development project.
means land and/or facilities for the storage, treatment or distribution of water; for the collection, treatment, reclamation or disposal of sewage; for the collection and disposal of stormwaters or for flood control purposes; for the generation of electricity or the distribution of gas or electricity; for purposes of transportation and transit, including, but not limited to, streets and supporting improvements, roads, overpasses, bridges, harbors, ports, airports and related facilities; for parks and recreational improvements; for public safety, including police and fire services; for public buildings, including public libraries; or for any other capital project identified in the city's adopted capital improvements program.
means the five year plan for capital improvements adopted annually by the city council. The capital improvements plan describes the approximate location, size, time of availability and estimated cost of capital improvements and appropriates money for such capital improvement projects.
means the list of capital improvements attached to the annual city council resolution setting the base fee amount for a specific development fee. The list shall include a description of each capital improvement project and the approximate location, size, time of availability and cost of each capital improvement to be funded from a particular development fee account.
means the point at which the development fee due is actually paid by the applicant to the city.
means earmarking of development fees to fund or partially fund capital improvements serving new development projects.
means tentative plat or parcel map approval if the imposition of development fees could lawfully have been imposed at such time or, building permit issuance if development fees could not be lawfully imposed at tentative plat or parcel map approval.
means any monetary exaction imposed as a condition of or in connection with approval of a development project for the purpose of defraying all or a portion of the cost of capital improvements related to the 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, and permits issued for the addition to or remodeling, rehabilitation, alteration or improvement of an existing building or structure which constitute a change in use or occupancy.
means one or more rooms designed, occupied or intended for occupancy as separate living quarters. Each dwelling unit contains only one kitchen. A mobilehome is a dwelling unit. Any self-contained area with more than one room and independent exterior access in combination with a sink and bathtub or shower shall also be considered a dwelling unit.
means the determination that a particular development project is subject to the condition of payment of development fees and the attachment of such requirement to a particular development project as a condition of development approval.
means all development other than a residential development project.
means any development undertaken for the purpose of creating a new dwelling unit or units and involving the issuance of a building permit for such construction, reconstruction or use.
(Ord. No. 89-12, § 2, 4-12-89; Ord. No. 89-52, § 1, 10-18-89)
(a)
Prior to the establishment or increase of any development fee, the city shall hold a public hearing at which oral or written presentations can be made, as a part of a properly noticed meeting.
(b)
Notice of the time and place of the meeting, including a general explanation of the matter to be considered, shall be published in accordance with state law.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
An ordinance or resolution establishing a new development fee or increasing an existing development fee shall take effect no sooner than 60 days following the final action by the city on the ordinance or resolution.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
(a)
Development fees shall be imposed as a condition of approval of a development project. No tentative or final subdivision map, parcel map, grading permit, building permit, final inspection or certificate of occupancy shall be approved unless the provisions of this section have been fulfilled.
(b)
Development fees shall be imposed by affixing the following language to the development approval:
Approval of this development project is conditioned upon payment of all applicable development fees and connection fees in the manner provided in Chapter 6 of the Escondido Municipal Code.
(c)
Water and sanitary sewer connection fees shall be calculated and collected at the time of application for connection to the utility system; except that payment of sanitary sewer fees may be deferred pursuant to section 6-465.5 of Article 18D of this chapter.
(d)
All other development fees shall be calculated and collected at the time of issuance of a building permit; except that payment may be deferred to final inspection request subject to the subdivider, developer or builder entering into an agreement with the city, approved by the city attorney and recorded, which will provide for the deferment of the payment of said fees to a date established by the city, not to exceed one year from building permit issuance. The calculation of deferred development fees due shall be based on the development fee schedule in effect at the time of payment. Development fees required as mitigation measures may be deferred only in accordance with the mitigation monitoring and reporting program.
(e)
No building permit shall be issued until all development fees due for the development project have been paid or secured through a recorded agreement with the city. No temporary or final certificate of occupancy or permanent connection to utilities may be granted until all development fees have been paid in full. Procedures to implement fee deferral may be amended from time to time by city council resolution.
(f)
Procedures to implement fee deferrals, development fee amounts and fee benefit areas shall be established, and may be amended from time to time by city council resolution.
(Ord. No. 89-12, § 2, 4-12-89; Ord. No. 89-25, § 2, 6-7-89; Ord. No. 89-50, § 1, 10-11-89; Ord. No. 91-30, § 1, 8-7-91; Ord. No. 2003-16, § 1, 6-4-03; Ord. No. 2012-12, § 2, 6-20-12)
(a)
There is hereby established a development fee account for each benefit area for each type of capital improvement for which a development fee is imposed, calculated and collected. The funds of each account shall not be commingled with other accounts nor with any other revenues or funds of the city. In the event that an account has previously been established pursuant to separate ordinance for deposit of development fee proceeds, such account shall be deemed a development fee account under this section and shall be subject to the provisions of this chapter.
(b)
All development fees collected within the benefit area shall be deposited within the development fee account which shall be an interest-bearing account and which interest shall be considered funds of the account.
(c)
The funds of the account shall be expended within the benefit area and shall be used exclusively for capital improvements for which the development fees were collected.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
(a)
Development fees shall be expended only for the type of capital improvement for which they were imposed, calculated and collected and shall be expended or committed in accordance with the time limits and procedures established in this ordinance. Development fees may be used to pay the principal sum and interest and other costs on bonds, notes or other obligations issued by or on behalf of the city to finance capital improvements.
(b)
Development fees shall not be expended to maintain, repair or operate capital improvements.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
The city shall expend or commit development fees deposited in the development fee account within five years from the date of deposit into the fund, except as provided in section 6-444.2(c).
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
(a)
Any applicant subject to a development fee pursuant to this chapter who constructs, escrows money with the city for the construction of, agrees to participate in an assessment district for the construction of or who otherwise contributes funds for capital improvements, as herein defined, may be eligible for a credit for such contribution against the development fee otherwise due.
(b)
Eligibility for, and the amount of, the credit shall be determined by the director of community development based upon whether the contribution meets capital improvement needs for which the particular development fee has been imposed, as expressed in this chapter, the capital improvements plan, and the development fee report for the particular development fee; whether the developer contribution will substitute for or otherwise reduce the need for capital improvements anticipated to be provided with development fee funds; and the value of the developer contribution. In no event, however, shall the credit exceed the amount of the otherwise applicable development fee.
(c)
Credit applications shall be made on forms provided by the city and shall be submitted at or before the time of development fee collection. The application shall contain a declaration of those facts, under oath, along with relevant documentary evidence which qualifies the applicant for the credit.
(Ord. No. 89-12, §§ 1, 2, 4-12-89; Ord. No. 2008-21(R), § 1, 10-22-08)
(a)
Once each fiscal year, the city shall make findings identifying all unexpended or uncommitted development fees in each development fee account.
(b)
Except as provided in subsection (c) of this section, upon application of the property owner the city shall refund the portions of any development fee which have been on deposit over five years and which are unexpended or uncommitted. Refunds shall be made to the then current record owner or owners of the development project or projects on a prorated basis, together with accrued interest.
(c)
With respect to fees unexpended or uncommitted within five years of deposit in a development fee account, the city may make findings to identify the purpose to which the fee is to be put and to demonstrate a reasonable relationship between the fee and the purpose for which it was charged. If the city makes such findings, the fees are exempt from the refund requirements.
(d)
If the city finds that the administrative costs of refunding the unexpended or uncommitted development fees exceed the amount to be refunded, the city council, after a public hearing, notice of which has been published in accordance with state law and posted in three prominent places within the area of each development project subject to a refund, may determine that the revenues shall be allocated for other capital improvements of the type for which the fees were collected and which serve the development projects.
(e)
The city may refund the unexpended or uncommitted portions of development fees by direct payment, by offsetting such refunds against other development fees due for development projects on the property, or by other means subject to agreement by the property owner.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
Any person may request an audit of any development fee imposed by the city in order to determine whether the amount of the fee imposed by the city exceeds the amount reasonably necessary to finance capital improvements, the need for which is attributable to new development projects. Upon such request, the city council may retain an independent auditor to conduct an audit to determine whether the development fee is reasonable. Any costs incurred by the city in having an audit conducted by an independent auditor shall be recovered from the person who requested the audit. If an audit is requested, the city may require a deposit from the applicant equal to the estimated cost of the audit.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
(a)
The property owner or applicant may appeal to the city council any decision of a city official with respect to the imposition or calculation of a development fee or the amount of any credit or refund due. The burden of proof is on the appellant to demonstrate that the imposition of the fee or amount of the fee or of the credit or refund was not calculated in accordance with the procedures established herein.
(b)
An appellant protesting the imposition of a development fee must file a notice of appeal with the clerk within 10 calendar days following the final decision on the imposition of the fee.
(c)
An appellant protesting the calculation of a development fee or the determination of applicability and calculation of a credit or refund must file a notice of appeal with the city clerk within 10 calendar days following the final decision on the calculation of the development fee or on the applicability or calculation of a credit or refund. 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 fee calculated by the city official to be due, the development application shall be processed. The filing of an appeal shall not stay the collection of the fee which is due unless a bond or other sufficient surety has been filed.
(d)
Failure to appeal within the time limits set forth herein shall be deemed a waiver of the right to appeal.
(e)
Any judicial action or proceeding to attack, review, set aside or annul the reasonableness, legality or validity of the imposition of a development fee must be filed and service of process effected within 90 days after the date of imposition.
(f)
Any judicial action or proceeding to attack, review, set aside or annul the calculation of a development fee or the determination of applicability and calculation of a credit or refund must be preceded or accompanied by a valid protest filed within 90 days after the date of calculation. A valid protest must meet both of the following requirements:
(1)
Tendering the required payment in full or providing satisfactory assurance of payment;
(2)
Serving written notice on the city including:
(A)
A statement that the required payment is/has been tendered under protest,
(B)
A statement informing the city of the factual elements of the dispute over the calculation of the development fee or the determination of applicability and calculation of a credit or refund,
(C)
A statement informing the city of the legal theory forming the basis for the protest.
(g)
Only a party who files a valid protest may file a judicial action to attack, review, set aside, void or annul a decision on the calculation of a development fee or the applicability and calculation of a credit or refund. Such judicial action must be filed and service of process effected within 180 days after the date of calculation.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
Petitions for exceptions to the application of this chapter shall be made in accordance with procedures established by resolution of the city council.
(Ord. No. 89-12, §§ 1, 2, 4-12-89; Ord. No. 91-30 § 2, 8-7-91)
(a)
At least once every year prior to city council adoption of the annual budget and capital improvements plan, staff shall prepare a report to the city council on the subject of development fees and shall incorporate:
(1)
Recommendations on amendments, if appropriate, to this chapter, to ordinances imposing development fees, or to resolutions establishing development fee amounts;
(2)
Proposed changes to the capital improvements program identifying capital improvements to be funded by development fees;
(3)
Proposed changes to the boundaries of benefit areas; and
(4)
Proposed changes to development fee rates or schedules.
(b)
Based upon the report and such other factors as the city council deems relevant and applicable, the city council may amend this chapter, specific ordinances imposing development fees, and resolutions establishing development fee rates or schedules. Changes to the development fee rates or schedules, to the boundaries of benefit areas, or to the list of capital improvements to be funded by development fees may be made by resolution. Nothing herein precludes the city council or limits its discretion to amend this chapter, ordinances imposing development fees or resolutions establishing development fee rates or schedules at such other times as may be deemed necessary.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
Neither this article nor Articles XVIIIIA, XVIIIB or XVIIIC of this chapter shall affect, in any manner, the permissible use of property, density of development, design and improvement standards and public improvement requirements or any other aspect of the development of land or construction of buildings, which may be imposed by the city pursuant to the zoning ordinance, subdivision regulations or other ordinances or regulations of the city, which shall be operative and remain in full force and effect without limitation with respect to all such development.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
Specific development fees imposed by Articles XVIIIA, XVIIIB and XVIIIC of this chapter reflect a development's proportionate share of improvements necessary to meet facility demands created by such development at established city service level standards. As such, development fees are additional and supplemental to, and not in substitution of, on-site facility requirements imposed by the city pursuant to zoning, subdivision or other city ordinances and regulations. If, and to the extent that zoning, subdivision or other city ordinances, regulations or policies require the provision of off-site improvements included in the applicable development fee capital improvement plan, the applicant shall be eligible for a credit pursuant to section 6-442 hereof for the cost of such improvement.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
In the event of a conflict between the provisions of this article and the provision of any other ordinance or resolution establishing or amending development fees, the provisions of this article shall govern.
(Ord. No. 89-12, §§ 1, 2, 4-12-89)
(a)
Any applicant subject to a development fee pursuant to this chapter may be eligible for a credit against such fees for buildings or uses which are to be replaced on the property, as provided by this section.
(1)
A building which is to be demolished and replaced may receive up to a 100% credit for development fees imposed on the replacement building.
(2)
Credit in the applicable fee category shall also be provided against development fees required when existing uses of property are replaced by new uses of property, whether or not buildings are demolished or remodeled. Such credits shall be available up to the amount in each category of the existing use to be replaced and shall be applied against the total amount due as a result of the new uses.
(3)
Whether or not buildings are demolished or replaced, credits against the payment of development fees which are allowed under this section shall not be available under any circumstances for uses that were abandoned or discontinued more than 10 years prior to the date on which credits are to be applied. The time limit established by this section shall not apply to single-family dwellings demolished due to natural disaster.
(c)
This section shall not limit the ability of the city and any applicant to agree upon other terms for development fees or credits pursuant to a development agreement authorized and approved pursuant to Escondido Zoning Code section 33-1130 and applicable state law.
(d)
The application of credits under this section shall not affect any development fee reductions granted through the business enhancement zone (BEZ), Escondido Zoning Code section 33-1450 et. seq.
(e)
When credits are used on property pursuant to section 6-445(a)(1) or (2), any remaining credits from that particular application shall not be available for use on any other property or on the same property in the future, or be available as refunds of cash or other contributions related to development.
(Ord. No. 2008-21(R), § 2, 10-22-08)
(a)
Upon application for a building permit, credit against applicable development fees shall be available for certain non-profit, community benefit projects as set forth in this section.
(b)
Non-profit, community benefit projects shall be eligible for credit against total development fees in the amount of 50% of such fees, or $10,000, whichever is less.
(c)
Non-profit, community benefit projects are defined as follows:
(1)
Must be a charitable, public benefit or religious organization. Mutual benefit organizations benefit their members and would not qualify.
(2)
Promotes the common good and general welfare of the people of Escondido as a whole. Services provided contribute to the quality of life of the citizens of Escondido.
(3)
Has an established history of City of Escondido community based service activities and/or will provide City of Escondido based services.
(4)
Characteristics of community based organizations include those providing opportunity for worship, spiritual growth and development, daycare or senior care on a non-profit basis, and private elementary and secondary schools.
(5)
Social service providers including, but not limited to established organizations such as Boy Scouts, Girl Scouts, YMCA, Boys and Girls Club, Community Clinics and Family Social Services.
(d)
In the event either staff or an applicant challenges the application of credits pursuant to this section, the final determination of the availability of credits under this section shall be determined by action of the Escondido city council.
(Ord. No. 2008-21(R), § 3, 10-22-08)