A developer may be eligible for a fee credit or reimbursement, pursuant to this chapter, only if the developer submits a written request to the city engineer which establishes compliance with all of the following requirements to the satisfaction of the city engineer:
A. 
Describe the specified public improvements to be constructed by the developer;
B. 
Identify the components of the total program costs (construction, design, construction management and/or land acquisition, pursuant to Section 3.22.020) for which the developer is requesting credit;
C. 
Describe the development project or projects to which the credit is requested to apply. The description shall either: (1) be limited to the development project for which specified public improvements are a condition of approval; or (2) document that the development projects for which credit is requested to apply: (i) receive a benefit from the specified public improvements, and (ii) do not create the need for the construction of additional program improvements to which the credited fees would apply;
D. 
Document that either: (1) the developer is required, as a condition of approval for the development project, to construct the specified public facilities; or (2) the developer requests to build one or more specified public facilities which benefit the development project, and the city engineer determines in writing prior to the commencement of construction that it is in the city's best interests for the specified public facilities to be built by the developer, and the land on which the specified public facilities are to be built is either owned by, or offered for dedication to, the city through a recorded document;
E. 
Document that either: (1) the city has approved the design of the specified public facilities with approved improvement plans; or (2) the developer has submitted a timely written request to design the specified public facilities, pursuant to Section 3.22.010(J), and the proposed design is in the best interests of the city;
F. 
To the extent that credit for land acquisition costs are requested, document that: (1) the terms of acquisition are in the best interests of the city; (2) the amount of credit for the land acquisition is equal to a reasonable estimate of the fair market value of the land based upon either: (i) documentation provided by the developer to the city, or (ii) in the event that the city engineer determines that the documentation provided by the developer does not provide a reasonable basis for determining the fair market value of the land, the developer shall pay for the costs of a property appraisal by an expert selected by the city engineer which is qualified to express an opinion as to the value of the property (pursuant to Code of Civil Procedure Section 1255.010); and (3) prior to allocation of credit by the city, the developer will transfer the real property to the city in a form acceptable to the city engineer;
G. 
Document that, prior to the allocation of credit by the city, the developer shall enter into a written agreement with the city by which the developer agrees to construct the specified public facilities in return for the potential credit to be allocated in accordance with this title;
H. 
Document that the developer will, prior to the allocation of credit by the city and before beginning construction, either: (1) provide improvement security (in a form acceptable to the city); (2) finance the specified public facilities by cash, assessment district, or Mello-Roos community facilities district; or (3) a combination of the above;
I. 
The developer shall pay: (1) the city plan check fee (only if the developer receives city approval for design credit); and (2) the city inspection fee. The amount of the plan check and inspection fees for the specified public improvements for which the developer receives credit shall be in accordance with city regulations;
J. 
The request shall be submitted by the developer to the city engineer in accordance with the following timing requirements: (1) to the extent that the developer requests credit for design, the request shall be submitted prior to the commencement of any design services by the developer; and (2) to the extent that the developer requests credit for construction, contract management, or land acquisition, the request shall be submitted concurrently with the submittal of improvement plans. In any event, all requests submitted pursuant to this section shall be submitted prior to the recordation of the final map or parcel map for the development project; provided that a developer may submit a late application if the developer pays a processing fee established in accordance with city regulations to cover the city's reasonable costs associated with administering the late application.
(Ord. 03-223 § 2; Ord. 07-271 § 5)
In the event that the city engineer determines that the developer has submitted a timely application which demonstrates that the developer will be able to complete all of the requirements described in Section 3.22.010(A) through (J), the city engineer shall prepare a written determination of the amount of potential credit available to the developer. The calculation of the amount of potential credit shall be made pursuant to the terms of this section. Of the total program costs, as defined in Section 3.20.060, the developer may be entitled to potential credit for the following components:
A. 
Estimated construction costs for the specified public facility;
B. 
Estimated design costs;
C. 
Estimated construction management costs;
D. 
Estimated costs of land acquisition;
E. 
The developer shall not be entitled to any credit for program implementation or contingencies.
(Ord. 03-223 § 2; Ord. 07-271 § 6)
After the developer receives the city engineer's written determination of the amount of potential credit available to the developer, and the developer establishes completion of all requirements described in Section 3.22.010(F)—(I), the city engineer shall prepare a written determination of the amount of actual credit available to the developer. The developer may apply the actual credit against fees which would otherwise be imposed upon the developer, in accordance with this section. However, the developer shall be entitled to apply the credit against fees only if the developer submits to the city engineer a written designation of credit allocation which establishes the following:
A. 
To apply credit to any or all lots within a final map or final parcel map, the designation must be made no later than the date of issuance of the first building permit for the final map or final parcel map; provided that a developer may submit a late application if the developer pays a processing fee established in accordance with city regulations to cover the city's reasonable costs associated with administering the late application. The designation may be made no sooner than the date on which the city approves the final map or final parcel map.
B. 
The credits may only be applied to lots within the development project or projects for which the application for credit was made.
C. 
The credits may only be applied to fees for the specified public facility category in which the credited public facility (i.e., the public facility constructed by the developer) is included.
D. 
The designation must specifically identify to which lots the credit will be applied.
E. 
The total amount of credit to be applied shall not exceed the amount of actual credit available to the developer, as set forth in the city engineer's written determination.
F. 
The credits may only be applied on a lot-by-lot basis to lots for which the developer has a sufficient actual credit balance to offset the full fee (as described in Section 3.22.040); provided that, for the last lot to which the developer applies credit, the developer may apply a partial credit to offset a portion of the fee. The credits may not be applied on a pro rata basis to apportion partial credit over multiple lots.
G. 
No credits shall be allocated retroactively. That is, no credits shall be applied to any lot for which fees have already been paid to the city.
(Ord. 03-223 § 2)
In the event that the city engineer determines that the developer has properly designated the application of credit against fees, pursuant to Section 3.22.030, the city engineer shall prepare a written determination of credit allocation and credit balances which will be calculated as follows: The amount of actual credit available to the developer shall be debited in an amount equal to the sum of: (a) the amount of reimbursements requested by the developer pursuant to Section 3.22.050, and (b) the product of: (1) the number of lots properly designated in accordance with Section 3.22.030, and (2) the relevant fee for the specified public facility category in effect (pursuant to implementing resolution) at the time of the designation.
(Ord. 03-223 § 2)
To the extent that the developer has a balance of actual credit available, the developer may submit a written request for reimbursement to the city engineer. The developer shall be entitled to potential reimbursement from the city only if the developer submits a written request to the city engineer which establishes the following:
A. 
The request must be made no later than 180 days after the issuance of the last building permit within the development project for which the application for credit was made; provided that a developer may submit a late application if the developer pays a processing fee established in accordance with city regulations to cover the city's reasonable costs associated with administering the late application.
B. 
The request must identify the specific dollar amount of the credit balance (from an identified fee fund) which the developer requests to be allocated to a reimbursement, along with documentation in support thereof, including: a copy of the city engineer's written determination of the amount of actual credit available to the developer, and a copy of all of the city engineer's written determinations of credit allocations and credit balances.
C. 
The request must identify the amount of remaining credit (calculated by subtracting the requested reimbursement amount from the previous credit balance) available to the developer.
D. 
The request must include a designation of the name and address of the legal entity to which reimbursement payments are to be made.
(Ord. 03-223 § 2)
A. 
In the event that the city engineer determines that the developer has properly submitted a request for reimbursement, pursuant to Section 3.22.050, the city engineer shall prepare a written determination of potential reimbursement allocation which will include the dollar amount of the potential reimbursement. The dollar amount of the potential reimbursement shall equal the amount specified in the developer's request (not to exceed the actual credit available to the developer, less the total of all credit allocations to the developer set forth in all of the city engineer's written determinations of credit allocation). The potential reimbursement amount shall be adjusted by the city engineer as necessary to calculate a potential reimbursement balance equal to: (1) the potential reimbursement allocation amount; plus (2) the amount of interest added to the reimbursement account pursuant to Section 3.22.070(A), to the extent the interest is allocated to the developer; less (3) the amount of all reimbursement payments made to the developer.
B. 
In the event that the city engineer determines that a developer has constructed a program public facility, and the developer has not properly submitted a request for reimbursement pursuant to Section 3.22.050, the city engineer shall provide written notice to the developer (by U.S. mail, or, if the developer's address is unknown, by publication in a newspaper of general circulation within the city) the developer's right to potential reimbursement in accordance with this title. In the event that the developer does not submit a request for reimbursement pursuant to Section 3.22.050, within 30 days after the city's written notice pursuant to this subsection, the city shall refund the amount otherwise subject to reimbursement to the program fund, resulting in a net decrease in the fee.
C. 
In the event that the city engineer receives a late application for reimbursement, the developer's potential reimbursement amount, if any, shall be reduced to the extent necessary to cover any lost revenue related to a decrease in the fee set forth in subsection B of this section.
(Ord. 03-223 § 2)
The reimbursement allocation will be administered as follows:
A. 
As of the date of the properly submitted request for reimbursement, the city shall designate a separate reimbursement account within the relevant fee fund. To the extent that the city collects fees for the fee fund, after the date that the reimbursement account is designated, the city shall deposit in the reimbursement account 10% of all fees collected. To the extent that the reimbursement account earns interest, the earned interest shall be deposited in the reimbursement account.
B. 
To the extent that fees are deposited in the relevant reimbursement account, the city shall make semi-annual reimbursement payments to the developer, as designated pursuant to Section 3.22.050. The right to receive reimbursement payments, if any, shall not run with the land. The city shall make no reimbursements to any developer in excess of the amount of fees deposited in the relevant reimbursement account.
C. 
The city shall make no reimbursements to any developer in excess of the dollar amount of the potential reimbursement set forth in the city engineer's written determination of potential reimbursement.
D. 
In the event that the city engineer makes a written determination of potential reimbursement for more than one developer from the same reimbursement account, the city shall make pro rata reimbursements to each developer based upon the formula described in this section. The month in which the city approves the developer's properly submitted request for reimbursement shall be the developer's starting month. The number of months between the starting month and the month in which the city calculates reimbursement payments shall be the number of reimbursable months. The city shall calculate each developer's gross share of potential reimbursement by multiplying the developer's potential reimbursement balance by the reimbursable months. The sum of the gross shares for all developers within the same fee fund shall be the total gross share. Each developer's pro rata share shall be calculated by dividing the developer's gross share by the total gross share, and multiplying by the amount of funds deposited in the relevant reimbursement account.
E. 
No reimbursement payment shall be made to a developer until after the completion of construction by the developer, and acceptance of improvements by the city.
F. 
In the event that construction is completed (and all costs are paid) for the specified public facilities for which a fee fund is established, then all remaining fee revenues within the fee fund shall be transferred to the reimbursement account.
(Ord. 03-223 § 2)