The ordinance codified in this chapter is adopted pursuant to the city's police powers and the Mitigation Fee Act (Government Code Section 66000, et seq.), for the purpose of imposing fees on applicants seeking to construct development projects. The purpose of such fees is to minimize, to the greatest extent practicable, the impact that new development has on the city's public services and public facilities. Toward that end, the city intends that applicants for such development projects pay their fair share of the costs of providing such public services and public facilities. Accordingly, the amount of each impact fee is calculated based upon the gross square footage of nonresidential development, number of residential dwelling units, type or density or intensity of use, vehicle trip generation, or other appropriate methodology which ensures that the fee is roughly proportional to the impacts of new development on public facilities. The city assumes responsibility for and will pay for with general city revenues all public facility needs for existing development.
(Ord. 2134 § 2, 2016)
Unless expressly excepted or exempted, this chapter applies to all fees imposed by the city to finance public facilities attributable to new development, including without limitation:
(a) 
Law enforcement;
(b) 
Fire suppression/medic;
(c) 
Public meeting facilities;
(d) 
Library facilities and collection;
(e) 
Water distribution;
(f) 
Sewer collection;
(g) 
Aquatics facilities;
(h) 
Park land and improvements;
(i) 
Circulation.
(Ord. 2134 § 2, 2016)
This chapter does not apply to:
(a) 
Taxes and special assessments;
(b) 
Fees for processing development applications;
(c) 
Fees for enforcing regulations;
(d) 
Fees collected under development agreements;
(e) 
Fees imposed pursuant to a reimbursement agreement between the city and a property owner for that portion of the cost of a public facility paid for by the property owner which exceeds the need for the public facility attributable to, reasonably related to, and roughly proportional to, the development;
(f) 
Fees to mitigate impacts on the environment; or
(g) 
Fees imposed, levied or collected by other governmental agencies including subdivisions of the state and federal government.
(Ord. 2134 § 2, 2016)
Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this chapter:
"Benefit area"
means the geographic area within which impact fees are collected and expended for a particular type of capital improvement serving development projects within such area.
"Capital improvement"
means land or facilities for any other capital project identified in the city's capital improvements plan including, without limitation, to land or facilities for the following purposes: the storage, treatment or distribution of water; the collection, treatment, reclamation or disposal of sewage; the collection and disposal of stormwater and for watershed preservation purposes; transportation and transit including, without limitation, streets, street lighting and traffic-control devices and supporting improvements, roads, overpasses, bridges, airports, and related facilities; parks and recreational improvements; public safety, including police and fire facilities; schools and child care facilities; libraries and public art; and public buildings of all kinds. Capital improvement also includes design, engineering, inspection, testing, planning, legal land acquisition and all other costs associated with construction of a public facility.
"Capital improvements plan"
means the long-term plan for capital improvements, adopted by the city council, describing the approximate location, size, time of availability and estimated cost of capital improvement projects and identifies sources of funding for capital improvement projects.
"Capital improvements project list"
means the list attached to a council resolution setting the base fee amount for each specific impact fee. The list must describe the approximate location, size, time of availability and estimated cost of each capital improvement to be funded from a particular impact fee account.
"Collection"
means the point in time at which the impact fee is actually paid over to the city.
"Commitment"
means earmarking impact fees to fund or partially fund capital improvements serving new development projects.
"Dwelling unit"
means one or more rooms in a building or a portion of a room, designed, intended to be used, or actually used for occupancy by one household for living and sleeping quarters, and containing one kitchen only, and includes a mobile home, but not hotel or motel units.
"Impact fee"
means any monetary exaction imposed by the city as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the cost of or repayment of costs previously expended from other city funds for capital improvements relating to the project.
"Impose"
means to determine that a particular development project is subject to the collection of impact fees as a condition of development approval.
"New development or development project"
means and includes any project undertaken for the purpose of development, including, without limitation, a project involving the permit issuance for construction, reconstruction, or change of use, but not a project involving permit issuance for operating, remodeling, rehabilitating, or improving an existing structure, nor the rebuilding of a structure destroyed or damaged through natural disaster, nor the replacement of one mobile home with another on the same pad if no dwelling unit is added.
"Nonresidential development project"
means all development other than residential development projects.
"Residential development project"
means any development undertaken to create a new dwelling unit or units.
(Ord. 2134 § 2, 2016)
(a) 
Any legislative action adopting an ordinance, resolution, or other legislative enactment adopting a new impact fee or approving an increase in an existing fee must be accomplished in accordance with Government Code Section 66018.
(b) 
Any costs incurred by the city in conducting public hearings required by this section may be recovered as a part of the impact fees which are the subject of the hearing.
(Ord. 2134 § 2, 2016)
(a) 
Except as otherwise provided, persons submitting applications seeking approval for new development projects must pay the city impact fees, in an amount set by city council resolution, as a condition for the city to approve such development projects.
(b) 
No tentative or final subdivision map, parcel map, grading permit, building permit, final inspection, or certificate of occupancy, or other development permit, may be approved unless the provisions of this section are fulfilled.
(c) 
Impact fees will be imposed by including the following language in any document of development approval:
"All fees imposed pursuant to Chapter 3.110 of the Monterey Park Municipal Code must be paid to the city before this project is approved."
(d) 
Except as otherwise provided by applicable law, the city engineer will calculate and collect impact fees before the city issues a building permit, except that the connection fees are collected at the time an applicant seeks to connect to the city's utility system.
(e) 
Unless otherwise provided by council resolution, the impact fees established by this chapter will be automatically adjusted on an annual basis at the beginning of each fiscal year based on the average percentage change over the previous calendar year set forth in the construction price index for the Los Angeles metropolitan area. The first impact fee adjustment cannot be made before a minimum of ten months after the effective date of the ordinance codified in this section.
(Ord. 2134 § 2, 2016)
(a) 
The city must establish an impact fee account for each benefit area and for each type of capital improvement for which an impact fee is imposed. Impact fees collected must be deposited in each such account according to type of improvement and benefit area. The funds of the account cannot be commingled with the city's other funds. Any account previously established for the deposit of funds which would have been developer impact fees under this chapter are deemed an impact fee account for the purposes of this chapter.
(b) 
Each impact fee account must be interest-bearing and the accumulated interest will become a part of the account.
(c) 
The funds of each account will be expended within the benefit area exclusively for the capital improvements for which the impact fees were collected.
(Ord. 2134 § 2, 2016)
Impact fees may be expended only for the type of capital improvements for which they were imposed, calculated, and collected and according to the time limits and procedures established in this chapter. Impact fees may be used to pay the principal, interest and other costs of bonds, notes and other obligations issued or undertaken by or on behalf of the city to finance such improvements.
(Ord. 2134 § 2, 2016)
(a) 
Except as described in this section, upon application of the property owner, the city must refund that portion of any impact fee which has been on deposit over five years and which is unexpended and uncommitted. The refund will be made to the then-current owner or owners of lots or units of the development project or projects, provided that the then-current owner submits an application for a refund to the city within one hundred eighty days before the five-year period expires.
(b) 
If fees in any impact fee account are unexpended or uncommitted, starting with the fifth fiscal year after the first deposit into the account or fund, and every subsequent five years, the city council must make the findings required by Government Code Section 66001(d) for maintaining funds on deposit. If the council makes such findings, the fees are exempt from the refund requirement.
(c) 
The city may issue refunds through direct payment, offsetting the refund against other impact fees due for development projects by the owner on the same or other property; or otherwise by agreement with the owner. If the costs of refunding the impact fees would exceed the amount refunded, the city may instead comply with Government Code Section 66001(f).
(Ord. 2134 § 2, 2016)
All protests, appeals, and audits must be conducted in accordance with the procedures contained in the Mitigation Fee Act (commencing at Government Code Section 66020 et seq.).
(Ord. 2134 § 2, 2016)
At least once each year, before the city council's adoption of the budget and revisions to the capital improvements project list, the city manager, or designee, must report to the city council with:
(a) 
Recommendations for amendments to this chapter and to other parts of this code and to resolutions establishing impact fees;
(b) 
Proposals for changes to the capital improvements project list, identifying capital improvements to be funded, in whole or in part, by impact fees;
(c) 
Proposals for changes in the boundaries of benefit areas; and
(d) 
Proposals for changes to impact fee rates and schedules.
(Ord. 2134 § 2, 2016)
(a) 
A property owner who dedicates land or agrees to participate in an assessment district or otherwise contributes funds for capital improvements, as defined in this chapter, may be eligible for a credit for such contribution against the impact fee otherwise due.
(b) 
The city engineer must determine: (1) whether the contribution meets capital improvement needs for which the particular impact fee has been imposed; (2) whether the contribution will substitute for or otherwise reduce the need for capital improvements anticipated to be provided with impact fee funds; and (3) the value of the developer contribution. In no event, however, will the credit exceed the amount of the otherwise applicable impact fee.
(c) 
Any application for credit must be submitted at or before the time of development project approval on forms provided by the city. The application must contain a declaration of those facts, under oath, along with the relevant documentary evidence which qualifies the property owner for the credit.
(Ord. 2134 § 2, 2016)
In the event of a conflict between the provisions of this chapter and the provisions of any other ordinance or resolution establishing or amending impact fees, the provisions of this chapter govern.
(Ord. 2134 § 2, 2016)