2017-232 Adding Chapter 8.02 Development Impact Fees ORDINANCE NO. 2017-232
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MENIFEE ADDING CHAPTER 8.02 TO THE MENIFEE
MUNICIPAL CODE, ADOPTING DEVELOPMENT IMPACT FEES
IN ACCORDANCE WITH THE MITIGATION FEE ACT
WHEREAS, Government Code Sections 66000 et seq. (also known as the"Mitigation Fee
Act") authorizes the legislative body of a city to, by ordinance, impose impact fees on development
projects for the purpose of defraying all or a portion of the cost of public facilities related to the
development project; and
WHEREAS, when the City of Menifee ("City") incorporated on October 1, 2008, the City
Council initially adopted all of the County of Riverside's ordinances, including Ordinance No. 659,
which set Development Impact Fees ("DIF"); and
WHEREAS, due to the economic recession, the City subsequently adopted City
Ordinance No. 2009-43 on July 21, 2009 which reduced residential DIF Fees until June 30, 2010
or until 500 permits were issued at the reduced rate, whichever occurred first; and
WHEREAS, on May 18, 2010, the City Council adopted Ordinance No. 2010-76,
extending the reduced residential DIF until June 30, 2011; and
WHEREAS, the City Council finds that Menifee is a rapidly growing city. The City's
population has the potential to grow from a current population of about 90,000 to approximately
121,000 at build out. This increase in population is reasonably expected to create a substantial
increase in the demand placed upon public facilities; and
WHEREAS, the City's existing public facilities will soon become inadequate to handle the
projected population growth at existing levels of service. In order to serve the projected population
growth, the City Council finds that public facilities must be expanded; and
WHEREAS, Willdan Financial Services was selected to perform a Development Impact
Fee Nexus Analysis ("Nexus Analysis") needed to support future development in the City through
2040 that provides an evaluation of existing development impact fees, recommends an increase
and change in methodology in certain development impact fees, the creation of new impact fees
and establishes the nexus between the imposition of such impact fees and the estimated
reasonable cost of providing the service for which the fees are charged; and
WHEREAS, the Nexus Analysis substantiates the need for a modification to existing fees
to change certain methodology as well as creation of new impact fees; and
WHEREAS, the City Council shall by resolution establish the amount of the development
impact fees specified in this chapter, which resolution(s) shall be consistent with the requirements
of Assembly Bill 1600 (Chapter 927 Statutes 1989) as set forth in the Mitigation Fee Act; and
WHEREAS, on November 15, 2017, the City Council held a duly noticed public hearing
concerning the Ordinance, introduced and conducted a first reading of the Ordinance, and
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considered testimony and evidence at the Public Hearing held with respect thereto, and continued
the Public Hearing to the meeting of December 6, 2017; and
WHEREAS, on December 6, 2017, the City Council made certain revisions to the
Ordinance, and accordingly re-introduced the conducted a first reading of the Ordinance, and
considered testimony and evidence with respect thereto.
WHEREAS, on December 20, 2017, the City Council conducted a second reading of the
Ordinance; and
WHEREAS, the City Council has considered the requirements of CEQA.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct, and incorporated herein by this
reference.
SECTION 2. The Menifee Municipal Code is hereby amended to add Chapter 8.02, to
read as follows:
Chapter 8.02
DEVELOPMENT IMPACT FEES
Sections:
8.02.010 Purpose and intent.
8.02.020 Definitions.
8.02.030 Applicability.
8.02.040 Resolution establishing the amount of development impact fees.
8.02.050 Calculation of development impact fees.
8.02.060 Payment of fees for nonresidential development.
8.02.070 Payment of development impact fees on residential development.
8.02.080 Administration of development impact fees.
8.02.090 Credits and Reimbursements.
8.02.110 Development impact fee nonexclusive.
8.02.120. Protests, Appeals and Audits.
8.02.010. Purpose and intent. This chapter establishes the program for the
adoption and administration of development impact fees. It is the intent of the city
to require every person who develops land to mitigate the impacts of that
development on the city's public facilities. The city will therefore require developers
to pay a development impact fee that will assist in meeting the demand for public
facilities caused by development. The public facilities will be constructed in
accordance with a capital improvement plan adopted by resolution of the city
council. The amount of the development impact fees collected pursuant to this
chapter shall be limited to the cost of public facilities attributable to new
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development. The amount of the development impact fees collected shall not
include the cost of public facilities that serve existing development.
8.02.020 Definitions. Unless the context shall require otherwise, the definitions
set forth in this section shall apply to the following terms as used in this chapter:
"Accessory structure" means private garages, children's playhouses, antennas,
windmills, silos, tank houses, workshops, barns, coops and other buildings that are
accessory to a one-family or two-family dwelling.
"Building permit" means the permit required for new construction and additions
pursuant to this title. The term "building permit," as used herein, shall not be
deemed to include permits required for remodeling, rehabilitation, or other
improvements to an existing structure or rebuilding a damaged or destroyed
structure, provided there is no increase in gross floor area of commercial or
industrial development or in the number of dwelling units in residential
developments resulting therefrom.
"Capital improvements" means any and/or all of the public facilities and
infrastructure improvements, including acquisition of land, design and
construction, equipping and installing, and related capital costs which are to be
financed in whole or in part by the imposition of development impact fees.
"Capital improvements program" means the City's annually updated program
indicating the approximate location, size, time schedule and estimates of cost for
public facilities and improvements.
"Development" or "development project" means any manmade change to
improved or unimproved real property, the use of any principal structure or land,
or any other activity that requires issuance of a building permit.
"Development impact fees" means any monetary exaction, other than a tax or
special assessment, which is charged to an applicant in connection with approval
of a development project for the purpose of defraying all or a portion of the cost of
capital improvements and operational services related to the development project,
subject to the exceptions set forth in California Government Code Section 66000 et
seq.
"Nonresidential development" means any development project except for those
projects or portion of the project that contains residential development.
"Owner" means the legal owner(s) of real property upon which a development
project is proposed, or their authorized representative(s).
"Residential development" means any development consisting of one or more
dwelling units.
8.02.030. Applicability. In order to implement the goals, objectives, policies and
specific actions of the General Plan of the City, capital improvement plan, and the
City's annually adopted budget; to protect the health, safety and general welfare
of the City's population; to mitigate impacts of new development on the level of
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service capacity in existing facilities; and to ensure that the burdens of financing
public facilities are borne by the development projects benefited thereby, every
person constructing any new residential, commercial or industrial development
shall pay to the City, the development impact fee established by resolution of the
City Council.
Exceptions. The following types of development projects are not subject to
development impact fees:
1. Reconstruction of a structure damaged or destroyed by fire or other natural
causes, provided the structure contains the same number of dwelling units and/or
the same or less gross floor area as the damaged or destroyed structure.
2. Rehabilitation or remodeling of an existing residential structure provided no
new dwelling units are added to the structure.
3. Rehabilitation or remodeling of an existing nonresidential structure provided
no additional gross floor area is added to the structure and there is no change in
use that would generate more traffic.
4. Accessory structures, as defined herein.
8.02.040. Resolution establishing the amount of development impact fees.
The City Council shall by resolution establish the amount of the development
impact fees specified in this chapter, which resolution(s) shall be consistent with
the requirements of Assembly Bill 1600 (Chapter 927 Statutes 1989) as set forth
in California Government Code Section 66000 et seq. and shall include the
following:
A. Identify the purpose of the fee;
B. Identify the use to which the fee will be put;
C. Determine how there is a reasonable relationship between the fee's use and the
type of development project on which the fee is imposed;
D. Determine how there is a reasonable relationship between the need for the public
facility and the type of development project on which the fee is imposed; and
E. Determine how there is a reasonable relationship between the specific amount of
the fee imposed on a development project and the cost of the needed public
facilities attributable to that development project.
8.02.050. Calculation of development impact fees. A developer subject to the
development impact fee required by this Chapter shall pay the amount of the fee
in effect at the time that the fee becomes due. Furthermore, any fee imposed on a
development which is protected by vested rights acquired through a vesting
tentative subdivision map shall pay the amount of the fee in effect at the time the
rights became vested.
8.02.060. Payment of development impact fees for nonresidential
development. A developer shall pay the development impact fee for each building
in a nonresidential development or new square footage of a building in a
nonresidential development, in an amount established by resolution of the city
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council, prior to issuance of a building permit for that building. Construction which
does not result in new square footage shall not be subject to a public facilities
development impact fee.
A building permit may be issued to a developer prior to payment of the
development impact fee, if the developer qualifies as a nonprofit organization that
is exempted from taxes by Section 501(c)(3) of the Internal Revenue Code of 1986.
If, pursuant to this section, the required fee is not fully paid prior to issuance of a
building permit for construction of any portion of the nonresidential development
encumbered thereby, the Community Development Director may require the
property owner, or lessee if the lessee's interest appears of record, as a condition
of issuance of the building permit, to execute a contract to pay the fee or charge,
or applicable portion thereof, upon transfer of the nonresidential development, or
the applicable portion thereof, to a purchaser that does not qualify as a nonprofit
organization that is exempted from taxes by Section 501(c)(3) of the Internal
Revenue Code of 1986. The contract shall be recorded with the Riverside County
recorder and shall constitute a lien for the payment of the fee.
However, this section shall not be construed to prevent payment of the fees prior
to issuance of certificate of occupancy.
8.02.070. Payment of development impact fees on residential development.
A developer shall pay a development impact fee for each building which is part of
a residential development, in an amount established by resolution of the city
council, upon the issuance of a certificate of occupancy for that building.
In the case of mobilehome parks, the fee for all potential units within the entire park
shall be paid prior to the first mobilehome being placed within the park.
For purposes of this section, "certificate of occupancy," shall be defined as that
term is defined in Government Code Section 66007, as amended.
However, this section shall not be construed to prevent payment of the fees prior
to issuance of certificate of occupancy.
8.02.080. Administration of development impact fees. All of the fees collected
pursuant to this chapter shall be deposited into separate specific accounts for
public facilities of the City. These funds and any interest earnings thereon shall be
used solely for the purposes specified for funds of such account and solely for the
financing of such public facilities or to reimburse the City for public facilities funded
or constructed in whole or in part by the City.
8.02.090. Credits and Reimbursements. A. If a developer constructs a capital
improvement they may receive a credit against the corresponding development
impact fee for the development project. The developer and the City must enter into
a credit agreement prior to the issuance of a building permit for the development
project for the developer to receive a credit against the applicable development
impact fees. The agreement must estimate the cost of constructing the capital
improvement, the schedule for the completion of the capital improvement, a
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requirement that the capital improvement be constructed to City standards, and
such other terms and conditions as deemed necessary by the City.
B. Reimbursements. If a developer constructs a capital improvement the City
may reimburse the developer for the costs of the capital improvement in excess of
what is needed to provide services to or mitigate the impacts of the development
project. The developer and the City must enter into a reimbursement agreement
for the owner to receive a reimbursement. The reimbursement agreement shall
require the City, for a period of up to 10 years, to reimburse the developer from the
development impact fees collected to fund capital improvements of the same type
as the capital improvement constructed by the developer. The City shall not
reimburse a developer out of the City's general fund or any other City funds.
C. Maximum Credit and Reimbursement. In no event shall a developer receive
a credit and/or reimbursement in excess of the City's most recent estimated cost
of constructing the capital improvement, or the portion of the capital improvement
actually completed, by contract or by the City's own forces.
D. Credit and Reimbursement Policy. The City Council may, from time to time,
adopt by resolution a development impact fee credit and reimbursement policy
implementing the provisions of this section.
E. Execution of Agreements. The City Manager may approve and sign any
agreements authorized by subsection A or B of this section, provided the
agreement is consistent with this section and any policy adopted by the City
Council pursuant to subsection D of this section.
8.02.110. Development impact fee nonexclusive. The development impact fees
established herein are additional and supplemental to, and not in substitution of,
any other requirements imposed by the City on the development of land or the
issuance of building permits.
8.02.120. Protests, Appeals and Audits. All protests, appeals, and audits shall
be conducted in accordance with the procedures contained in the Mitigation Fee
Act (Government Code Section 66020 et seq.).
SECTION 3. Prior DIF Repealed. Upon the Effective Date of this Ordinance (as defined
in Section 5, below), the prior DIF program carried over by way of Ordinance No. 659 shall be
repealed.
SECTION 4. Notice of Adoption. The City Clerk shall certify to the passage and adoption
of this Ordinance, and shall cause the same to be published within fifteen (15) days after passage
in accordance with law, and shall cause this Ordinance and its certification, together with proof of
publication, to be entered in the Book of Ordinances of the City of Menifee.
SECTION 5. Effective Date. In compliance with California Government Code section
66017(a), this Ordinance shall take effect more than sixty (60) days after its adoption, on July 1,
2018.
SECTION 6. Severability. If any section, subsection, subdivision, sentence, clause,
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phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the
decision of any court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would have adopted
this Ordinance, and each section, subsection subdivision, sentence, clause, phrase, or portion
thereof, irrespective of the fact that any one or more sections, subsections, subdivisions,
sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
SECTION 7. Compliance with Notice and Public Hearing Requirements. This Ordinance
was reviewed at a properly noticed public hearing.
SECTION 8. CEQA. Pursuant to Section 15378(b)(4) of Title 14 of the California Code
of Regulations, the Ordinance is not considered a "project" under the requirements of the
California Environmental Quality Act (CEQA) because it involves the "creation of government
funding mechanisms or other government fiscal activities which do not involve any commitment
to any specific project which may result in a potentially significant physical impact on the
environment." In addition, the adoption of the Ordinance is exempt from CEQA because there is
no possibility that the proposed ordinance, as a textural change to the Municipal Code, may have
a significant impact on the physical environment (CEQA Guidelines 15061) and per Section
15061(b)(3), because it can be seen with certainty to have no possibility of a significant effect
upon the environment.
APPROVED AND ADOPTED THIS 20th DAY OF DECEMBER, 2017.
Nei k Winter, Mayor
Approved as to form:
,/2-��-Zf—2,
Je T. etching, Cit ttorney
Attest:
(Sarah A. Man W ari g, City Clea
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CITY OF
MENIFEE.
Neil R.Winter
Mayor STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
Lesa A.Sobek CITY OF MENIFEE )
Mayor Pro Tem
1, Sarah Manwaring, City Clerk of the City of Menifee, do hereby certify that the
Greg August foregoing Ordinance No. 2017-232 was duly adopted by the City Council of the City of
Councilmember Menifee at a meeting thereof held on the 20"' day of December, 2017 by the following
vote:
Matthew Liesemeyer
Councilmember Ayes: August, Denver, Sobek, Winter
Noes: Liesemeyer
John V. Denver Absent: None
Councilmember Abstain: None
Sarah A. Ma aring, City Clk'
29714 Haun Road
Menifee,CA 92586
Phone 951.672.6777
Fax 951.679.3843
www.cityofinenifee.us