A. 
The State of California, through the enactment of Government Code Sections 66001 through 66009 has authorized the City to enact development impact fees.
B. 
The imposition of development impact fees is a method of ensuring that new development bears a proportionate share of the cost of capital facilities and other costs necessary to accommodate such development. These fees are established to promote and protect the public health, safety and welfare.
C. 
Increase in residential and nonresidential development in the City creates a need for increased funds to pay for the cost of street, traffic signal and bridge improvements which are needed to serve the increasing development in the City.
D. 
Pursuant to the "Development Impact Fee Calculation and Nexus Report for the City of Huntington Beach" ("Nexus Report") dated October 2011, as amended April 27, 2012, which is incorporated herein by reference in these findings as though set forth in full, the fees established pursuant to this chapter are derived from, based upon, and do not exceed the costs of providing additional street, traffic signal and bridge improvements attributable to applicable new residential or nonresidential development. This study is based in part upon master planning to more specifically identify existing circulation system elements.
E. 
The fees collected pursuant to this chapter shall be used to finance the possible acquisition and expansion of circulation systems identified herein in furtherance of the City's General Plan, as well as the Master Facilities Plan which is part of the Nexus Plan and the City of Huntington Beach Capital Improvement Plan.
F. 
Detailed study of the impacts of future residential and nonresidential construction in the City, along with an analysis of the need for the potential acquisition and expansion of circulation systems has been prepared. This study is included in the Nexus Report.
G. 
As set forth in the Nexus Report, there is a reasonable relationship between the need for the potential acquisition and expansion of existing circulation system elements and the increase in the number of vehicles set forth in this chapter and the impacts of the types of development for which the corresponding fee is charged. In addition, there is a reasonable relationship between the fee's use and the type of development to which the fee is charged and a reasonable relationship between the amount of the fee and the cost of the system or portion thereof attributable to the development on which the fee is imposed.
(3944-8/12)
A. 
This chapter is intended to implement the goals, objectives and policies of the City of Huntington Beach General Plan, by ensuring that the City's adopted level of service standards for arterial roadways and signalized intersections are maintained when new development is constructed within the City limits. By imposing a fee that is reasonably related to the burdens created by new development on the City's surface transportation system, together with funding available from other City revenue sources, the City will be able to construct the required capital improvements, accommodate projected growth and fulfill the goals, objectives and policies of the City's General Plan.
B. 
It is the intent of the City Council that the fee required by this chapter shall be supplementary to any conditions imposed upon a development project pursuant to other provisions of this Code, the Subdivision Map Act, the California Environmental Quality Act, other state and local laws, ordinances or Charter provisions which may authorize the imposition of conditions on development.
(3048-9/90)
A. 
A Fair Share Traffic Impact Mitigation Fee is hereby established. Any person who, 60 days after the effective date of the ordinance codified in this chapter, seeks to develop land, or modify the use of land within the City, by applying for a building permit or other entitlement for use, or an extension of a building permit or other entitlement for use previously granted, for a development project that will generate net additional vehicle trips on City streets, is hereby required to pay a Fair Share Traffic Impact Mitigation Fee in the manner and amount specified in the current City of Huntington Beach Fee Resolution separately adopted.
B. 
The City Council shall, by resolution, set the specific amount of the fee, applicability of the fee, a formula for adjusting the fee to account for annual inflation in transportation improvement construction costs, describe the benefit and impact area on which the development impact fee is imposed, list the specific public improvements to be constructed, and describe the estimated cost of these facilities.
C. 
This fee shall be adjusted as provided in the resolution setting the specific amount of the fee.
(3944-8/12)
A. 
Exemption Categories. The following development projects shall be exempt from the requirements of this chapter:
1. 
Government and public facilities.
2. 
Alteration or expansion of an existing building in which no additional dwelling units are created, the use is not changed, and where no additional vehicle trips will be produced over and above those produced by the existing building.
3. 
The construction of accessory buildings, structures or uses which will not produce additional vehicular trips over and above those produced by the principal building or use of the land.
4. 
The replacement of a destroyed or partially destroyed building or structure with a new building or structure of the same size and use, provided that no additional vehicle trips will be produced over and above those produced by the original use of the land.
B. 
Claim for Exemption Required. Any claim of exemption must be filed in the same manner and will be considered pursuant to the same procedure as for a fee adjustment as provided in Chapter 17.73.
(3048-9/90)
A. 
Fee Calculation. The Public Works Director shall be responsible for calculating the Fair Share Traffic Impact Mitigation Fee required by this chapter, in accordance with the Fair Share Traffic Impact Mitigation Fee Schedule adopted by resolution of the City Council. The applicable amount of the fee shall be estimated at least 60 days prior to the first public hearing for any discretionary planning approvals required by City Zoning and Subdivision Ordinance. The estimated fee shall identify the use category, the vehicle trip-miles for the use and the total estimated for fee based upon the proposed size of the developments. The fee estimated shall be recalculated as needed at the time a building permit is issued, based on the vehicle trip generation characteristics of the final development plan for which the building permit is issued.
B. 
Payment Procedure for Commercial or Industrial Development Projects. Fees required by this chapter from a new commercial or industrial development project shall be paid at the time that the City issues a building permit for the project.
C. 
Payment Procedure for Residential Development Projects. The fee required by this chapter from a new residential development project shall be paid before final inspection of the dwelling unit on which the fee was imposed. However, the Planning Director may adopt procedures to advance the time the fee is due on residential development projects consistent with Government Code Section 66007, as amended.
D. 
Fee Payments for Phased Development Projects. If a development project will be constructed in phases, and separate building permits and certificates of occupancy will be issued for each phase, fees imposed pursuant to this chapter shall be calculated on the basis of the vehicle trip characteristics of the entire development project. Payment of the fees may be made separately for each phase, provided the amount paid for each phase shall be equal to the percentage that the vehicle trips for that phase represent of the total development project's vehicle trips. The fee per vehicle trip shall be the fee in effect at the time payment is due.
E. 
Deposit of Fees. All Traffic Impact Fees collected shall be transferred for deposit into a separate reserve account, as specified in this chapter, and used solely for the purposes specified in this chapter.
(3827-4/09, 3879-6/10, 3944-8/12)
Upon application, fees collected by the City pursuant to this chapter shall be refunded only under the following circumstances:
A. 
Erroneous or Illegal Collection. Fees will be refunded if the applicant demonstrates to the satisfaction of the Public Works Director that they were erroneously or illegally collected, or if the City is compelled to do so pursuant to a final judgment by a court of competent jurisdiction. An application for a refund pursuant to this section shall be filed within 90 days after the payment of the fees pursuant to Section 17.65.070.
B. 
City Failure to Commit Funds. Pursuant to Government Code Section 66001(e), fees will be refunded if the City fails to commit them to a surface transportation improvement project of the nature or type identified in the Master Facilities Plan, which is a part of the Nexus Report, within five years from the date that the fees were collected from the applicant. For purposes of this subsection, fees are deemed to have been "committed" if they have been budgeted or otherwise encumbered by the City for an eligible improvement, studies, design drawings or any necessary applications for approval by other governmental agencies have been initiated, construction bidding has been initiated, or improvements are under construction. Eligible refunds, plus interest at the City's average annual cost of funds, will be made only upon an application filed within 180 days of the expiration of the fifth anniversary of the fee payment.
(3944-8/12)
A. 
An applicant for a new development project shall be entitled to a credit against the amount of the Fair Share Traffic Impact Mitigation Fee otherwise required by this chapter, if the applicant agrees to dedicate right-of-way needed for, or construct a traffic improvement listed in, the Master Facilities Plan. No credit shall be given for site-related improvements or site-related right-of-way dedications.
B. 
Application. A separate application shall be filed for each adjustment request made pursuant to this section. Such application shall be filed with the Public Works Director on a form provided by the Director, not later than:
1. 
Thirty days prior to the first public hearing on an applicable discretionary permit application for the development project, pursuant to the City Zoning and Subdivision Ordinance; or
2. 
If no such discretionary permit is required, at the time of application for a building permit for the development project. Each application shall provide the documentation and assurances specified below.
Any credit application shall be considered pursuant to Section 17.65.070 in the same manner as the fee calculation adjustment.
C. 
Credit for the Dedication of Non-Site-Related Right-of-Way. Credit for the dedication of non-site-related right-of-way for streets or street segments listed in the Master Facilities Plan shall be valued at 115% of the most recent assessed value as determined by the Orange County Assessor, or at the fair market value established by a private appraiser acceptable to the City. In no event shall the credit exceed the right-of-way costs for the street segment specified in the Master Facilities Plan or other applicable basis for the fee, nor shall the credit exceed the amount of the Fair Share Traffic Impact Mitigation Fee that would otherwise apply. Credit for the dedication shall be provided when the property has been conveyed at no cost to, and accepted by, the City in a manner specified by the City.
D. 
Credit for Construction of Non-Site-Related Improvements.
1. 
Applications for credit for construction of non-site-related improvements shall submit acceptable engineering drawings, specifications and construction cost estimates to the Public Works Director. The Director shall recommend to the Planning Commission the amount of the credit for improvement construction based on either these cost estimates or alternative estimates if the Director determines reasonably that the estimates submitted by the applicant are either unreliable or inaccurate. In no event shall the amount of the credit exceed the improvement cost specified in the Master Facilities Plan, or other applicable basis for the fee, nor shall the credit exceed the amount of the Fair Share Traffic Impact Mitigation Fee that would otherwise apply.
2. 
No final inspection or certificate of occupancy for the development project may be issued until: (a) the construction is completed and accepted by the City; (b) a suitable maintenance and warranty bond is received and accepted by the City; and (c) all design, construction, inspection, testing, bonding and acceptance procedures are in strict compliance with City paving, drainage and other applicable requirements.
(3944-8/12)
Pursuant to Government Code Section 66006, fees paid to the City pursuant to this chapter shall be deposited into a separate reserve account in the City's general fund and used solely for the purposes of providing surface transportation improvements. All monies deposited into the reserve account established by this chapter shall be held separate and apart from other City funds. All interest or other earnings on the unexpended balance in the reserve account shall be credited to the reserve account.
(3048-9/90)
All monies and interest earnings in the reserve account established by this chapter shall be expended on the construction of surface transportation projects of the nature or type identified in the Master Facilities Plan, or such other report as may be prepared from time to time to document the reasonable fair share of the costs to mitigate the traffic impacts of new development. Such expenditures may include, but are not necessarily limited to the following:
A. 
Reimbursement for all direct and indirect costs incurred by the City to construct surface transportation improvements pursuant to this chapter, including the cost of land and right-of-way acquisition, planning, legal advice, engineering, design, construction and equipment.
B. 
Reimburse the City for the construction of surface transportation projects of the nature or type identified in the Master Facilities Plan, or such other report as may be prepared from time to time to document the reasonable fair share of the costs to mitigate the traffic impacts of new development constructed by the City with local funds from other sources.
C. 
Costs of issuance or debt service associated with bonds, notes or other security instruments issued to fund surface transportation improvements identified in the Master Facilities Plan.
D. 
Reimbursement for administrative costs incurred by the City in establishing or maintaining the reserve account required by this chapter, including the cost of studies to establish the requisite nexus between the fee amount and the use of fee proceeds. City administrative costs shall not exceed 10% of the reserve account balance in any fiscal year.
E. 
No reserve account funds shall be used to pay for capital improvements that are associated with existing arterial street segment or signalized intersection level of service deficiencies, except to the extent that new development contributes to the further degradation of operations, nor shall reserve account funds be used for periodic surface transportation system maintenance.
(3944-8/12)
Within 180 days after the last day of each fiscal year, the City Council shall review the status of compliance with this chapter, including the amount of fees collected, expenditures from the reserve account, and the degree to which the fees collected pursuant to this chapter are assisting the City to mitigate the surface transportation impacts of new development. At least every five years after the effective date of the ordinance enacting this chapter, the Public Works Director shall prepare, and the City Council shall consider, the fee formula established to implement this chapter, whether any adjustment in the fee formula or use of fee proceeds is warranted, or any other changes are needed to the procedures established by this chapter, to fulfill the goals, objectives or policies of the City's General Plan. Each year between periodic reviews of the fee formula, the fee shall be increased by a factor to account for inflation in surface transportation construction costs, as provided in the City Council resolution setting the fee amount.
(3617-10/03)
Within 60 days after the effective date of the ordinance enacting this chapter, the Director of Public Works shall prepare administrative guidelines to implement the provisions of this chapter. The guidelines shall include administrative procedures, example fee calculations, application forms and such other information that will assist City staff, decision makers, developers and the public to understand how the provisions of this chapter are to be implemented.
(3048-9/90)
If any section, phrase, sentence, or portion of this chapter is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portions shall be deemed a separate, distinct, and independent provision; and such holding shall not affect the validity of the remaining portions thereof.
(3944-8/12)