HomeMy WebLinkAbout2015-08-25; City Council; 22071; Adding Chapter 3.40 Reimbursement Fee for Construction Eligible ImprovementsCITY OF CARLSBAD-AGENDA BILL
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AB# 22,071 ADOPTION OF ORDINANCE ADDING CHAPTER DEPT. DIRECTOR (~
3.40 TO THE CARLSBAD MUNICIPAL CODE -M TG. 8/25/15 SETTING FORTH PROCEDURES FOR THE CITY ATTORNEY
DEPT. Clerk ESTABLISHMENT OF A REIMBURSEMENT FEE CITY MANAGER
FOR FUNDING THE REIMBURSEMENT OF
CERTAIN COSTS OF CONSTRUCTION ELIGIBLE
IMPROVEMENTS.
RECOMMENDED ACTION:
Adopt Ordinance No. CS-281, adding Chapter 3.40 to the Carlsbad Municipal Code setting forth
procedures for the establishment of a reimbursement fee for funding the reimbursement of
certain costs of construction eligible improvements.
ITEM EXPLANATION:
Ordinance No. CS-281 was introduced and first read at the City Council meeting held on July 28,
2015. The second reading allows the City Council to adopt the ordinance which will become
effective thirty days after adoption. The City Clerk will have the ordinance or a summary of the
ordinance published within fifteen days, if adopted.
FISCAL IMPACT:
See AB #22,053 on file in the Office of the City Clerk.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code Section 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has not potential to cause either a direct physical change
in the environment, or a reasonably foreseeable indirect physical change in the environment,
and therefore does not require environmental review.
EXHIBIT:
1. Ordinance No. CS-281.
DEPARTMENT CONTACT: Shelley Collins 760-434-2808 Shelley.Collins@carlsbadca.gov
FOR CITY CLERKS USE ONLY
COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC 0 -----
DENIED 0 CONTINUED TO DATE UNKNOWN 0
CONTINUED 0 RETURNED TO STAFF 0
WITHDRAWN 0 OTHER-SEE MINUTES 0
AMENDED 0
Or dinance No. CS-281 approved as amended.
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ORDINANCE NO. CS-281
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, ADDING CHAPTER 3.40 TO THE
CARLSBAD MUNICIPAL CODE SETTING FORTH PROCEDURES
FOR THE ESTABLISHMENT OF A REIMBURSEMENT FEE FOR
FUNDING THE REIMBURSEMENT OF CERTAIN COSTS OF
CONSTRUaiON OF EUGIBLE IMPROVEMENTS
WHEREAS, the Carlsbad City Council concurs that it is necessary to add Chapter 3.40
to the Carlsbad Municipal Code setting forth procedures for the establishment of a
reimbursement fee for funding the reimbursement of certain costs of construction of eligible
improvements.
NOW, THEREFORE, the City Council ofthe City of Carlsbad ordains as follows:
SECTION 1: That Chapter 3.40 is added to the Carlsbad Municipal Code to read as
follows:
Chapter 3.40 CARLSBAD REIMBURSEMENT FEE
3.40.010 Short Title
3.40.020 Purpose
3.40.030 Definitions
3.40.040 Request for Establishment of a Reimbursement Fee
3.40.050 Deposits
3.40.060 Improvements Eligible for Reimbursement
3.40.070 Eligible Costs
3.40.080 Construction of Eligible Improvements
3.40.090 Reimbursement Fee Study
3.40.100 Notice of Public Hearing
3.40.110 Public Hearing and Establishment of Reimbursement Fee
3.40.120 Adjustment ofthe Reimbursement Fee to Reflect Actual Costs
3.40.130 Adjustment of Reimbursement Fee for Specific Projects
3.40.140 Imposition of a Reimbursement Fee
3.40.150 Payment ofthe Reimbursement Fee
3.40.160 Establishment of Funds and Use of Reimbursement Fees
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3.40.010 Short Title. This Chapter shall be known as the "Carlsbad Reimbursement Fee."
3.40.020 Purpose. Chapter 21.90 ofthe Carlsbad Municipal Code requires the preparation
of a Local Facilities Management Plan for each Local Facilities Management Zone within the
City to include, among other provisions, a financing plan establishing various methods of
funding the public facilities and improvements identified in such Local Facilities Master Plan
needed to accommodate development within the related Local Facilities Management
Zone to fairly allocate the cost of construction of such public facilities and improvements to
the various properties within such Local Facilities Management Zone.
A Local Facilities Management Plan may provide that an owner or developer of
property within the related Local Facilities Management Zone fund and construct certain
required LFMP Improvements prior to or concurrent with development of such owner's or
developer's property to comply with the phasing schedule and performance standards for
such LFMP Improvements provided for in the LFMP.
The purpose of this Chapter is to establish, in accordance with the freedom afforded
to charter cities generally and by the Charter ofthe City of Carlsbad, a mechanism by which
the costs of the construction of LFMP Improvements (defined in Section 3.40.030 herein)
and certain appurtenant improvements, defined in Section 3.40.030 herein collectively as
"Eligible Improvements," incurred by an owner or developer of property within a Local
Facilities Management Zone may, as required pursuant to Chapter 21.90, be fairly allocated
among the properties within such Local Facilities Management Zone and the owner or
developer that originally incurred such costs may be reimbursed by the owners ofthe other
properties within the Local Facilities Management Zone that would otherwise have been
responsible for financing and/or constructing all or some portion of such Eligible
Improvements as a condition of approval ofthe development of such properties.
3.40.030 Definitions. As used in this Chapter, the following terms shall have the following
meanings:
"Administrative Services Director" shall mean the Administrative Services Director
of the City or his or her designee.
"Building Permit" means a permit required by and issued pursuant to Chapter 18.04
ofthe Carlsbad Municipal Code.
"Chapter 21.90" means Chapter 21.90 ofthe Carlsbad Municipal Code as it may be
amended from time to time.
"City" shall mean the City of Carlsbad.
"City Council" shall mean the City Council ofthe City.
"City Engineer" shall mean the City Engineer ofthe City or his or her designee.
"Eligible Improvements" shall mean those improvements for which the cost of
construction thereof may be eligible for reimbursement pursuant to this Chapter.
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"Eligible Incidental Costs" shall mean those incidental costs that may be eligible for
reimbursement pursuant to this Chapter and which the City Engineer determines are
reasonable and customary for the work performed or services provided.
"Local Facilities Management Plan" or "LFMP" shall have the meaning given such
term in Chapter 21.90.
"LFMP Improvements" means those public facilities and improvements identified in
an LFMP that are needed to accommodate development with the LMFZ for which such
LFMP was prepared pursuant to Chapter 21.90.
"LFMZ Property" or "LFMZ Properties" means a property or the properties, as
appiicable, within a Local Facilities Management Zone.
"Local Facilities Management Zone" or "LFMZ" means a local facilities management
zone established pursuant to Chapter 21.90.
"Occupancy Permit" means a permit required by and issued pursuant to Chapter
21.60 ofthe Carlsbad Municipal Code.
"Project" means any project undertaken on LFMZ Properties for the purpose of
development. "Project" includes a project involving the issuance of a permit for
construction or reconstruction, but not a permit to operate.
"Public Agency" shall mean any city or county, whether general law or chartered,
special district, school district or any other municipal corporation, district, or political
subdivision ofthe State of California.
"Reimbursement Fee" means a fee adopted pursuant to the Charter ofthe City of
Carlsbad, this Chapter and any City Council resolution adopted pursuant to this Chapter.
"Reimbursement Fee Study" means a study prepared or caused to be prepared by
the City Engineer pursuant to Section 3.40.090 hereto pertaining to a request for
establishment of a Reimbursement Fee.
"Requesting Party" means the owner or developer of LMFZ Property within an LFMZ
that has filed a request pursuant to Section 3.40.050 hereto that the City establish a
Reimbursement Fee pursuant to the provisions of this Chapter. "Requesting Party" also
means, collectively, the owners and/or developers of LFMZ Properties within an LFMZ that
have jointly filed such a request.
3.40.040 Request for Establishment of a Reimbursement Fee. Whenever a Requesting
Party is required by the City to construct Eligible Improvements the cost of which such
Requesting Party believes will exceed the cost fairly allocable to the Requesting Party's LFMZ
Property, the Requesting Party may file a written request with the City Engineer requesting
that the City undertake proceedings pursuant to this Chapter to consider the establishment
by the City of a Reimbursement Fee to be imposed on those LFMZ Properties located within
such LFMZ upon which a portion ofthe cost of such Eligible Improvements should be fairly
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EXHIBIT 1
allocated as a condition of approval of the development of such LFMZ Properties. Such
request must be received by the City Engineer prior to the construction of the Eligible
Improvements for which reimbursement is being requested.
Such a request shall include a description of each Eligible Improvement in sufficient
detail to enable to the City Engineer to identify each such improvement and a detailed plat
ofthe applicable LFMZ showing the precise location of each such Eligible Improvement with
respect to each of the LFMZ Properties. Such request must also include an engineer's
estimate of the cost of construction of such Eligible Improvements, together with an
estimate of the Eligible Incidental Costs for which reimbursement is requested. For any
request for which the Requesting Party consists of multiple owners and/or developers that
are jointly filing such request, such request must be executed by all such owners and
developers and must include the designation of one party to whom the City is authorized
and directed to make all reimbursement payments, together with an acknowledgment that
the City shall have no responsibility whatsoever for determining the allocation of
reimbursements among such owners and/or developers or making such allocation to such
owners and developers. The Requesting Party shall, at such Requesting Party's expense, also
mail a copy of such request to the owner of each LFMZ Property and the Requesting Party
shall file proof of such mailing satisfactory to the City Engineer.
The request of such Requesting Party shall not be deemed to be complete until:
A. The City Engineer has received satisfactory proof of the mailing of the
Requesting Party's request for establishment of a Reimbursement Fee; and
B. The Administrative Services Director has received the initial deposit from
the Requesting Party as required pursuant to Section 3.40.050 below.
3.40.050 Deposits. All City and consultant costs incurred in the implementation of a
request for the establishment of a Reimbursement Fee pursuant to the provisions of this
Chapter, the preparation of the Reimbursement Fee Study for such Reimbursement Fee
request, the proceedings to establish a Reimbursement Fee, the amendment of the
Reimbursement Fee Study pursuant to Section 3.40.120 and the proceedings to consider
the adjustment of a Reimbursement Fee pursuant to Section 3.40.120 will be paid by the
Requesting Party by advance deposit with the City of monies sufficient to pay all such
costs.
Each request for the establishment of a Reimbursement Fee shall be accompanied
by an initial deposit in an amount to be determined by the Administrative Services
Director to be adequate to fund the initial review of the request, preparation of the
Reimbursement Fee Study and the proceedings to implement the Reimbursement Fee
request. If additional funds are required to pay implementation costs, the Administrative
Services Director may make written demand upon the Requesting Party for such
additional funds and the Requesting Party shall deposit such additional funds with the
City within five (5) working days of the date of receipt of such demand. Upon the
depletion ofthe funds deposited by the Requesting Party for such costs, all work related
to the preparation of the Reimbursement Fee Study and all proceedings related to the
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establishment of such Reimbursement Fee shall be suspended until receipt by the City of
such additional funds as the Administrative Services Director may demand.
The deposits shall be used by the City to pay for costs and expenses incurred by
the City incident to the initial review of the Reimbursement Fee request, preparation of
the Reimbursement Fee Study, proceedings for the consideration ofthe Reimbursement
Fee request, and the review of the actual costs of construction of the Eligible
Improvements and the Eligible Incidental Costs and proceedings for the consideration of
the adjustment of the Reimbursement Fee pursuant to Section 3.40.120, including, but
not limited to, legal. Reimbursement Fee consulting, engineering, administration and staff
costs and expenses, required notifications, printing, and publication costs.
The City shall refund any unexpended portion of the deposits if the Requesting
Party files a written request with the City Engineer that the Requesting Party is
terminating its reimbursement request.
3.40.060 Improvements Eligible for Reimbursement. Eligible Improvements must be LFMP
Improvements or other additional public improvements identified in this Section 3.40.060
below that will be owned, operated, or maintained by the City or another Public Agency and
that are constructed pursuant to and in compliance with all applicable requirements ofthe
City, including without limitation this Chapter, or such other Public Agency that will own,
operate or maintain such Eligible Improvements. The City Council shall have the final
determination as to the eligibility of any improvements for reimbursement. Such Eligible
Improvements may include, but are not limited to:
A. Streets and Highways: Arterial streets, highways, major bridges, and
freeway interchanges constituting LFMP Improvements for an LMFZ. If the primary
purpose of completing a circulation link is met, and overriding public interest is shown,
then public facilities increasing traffic capacity for a circulation element may be
considered. Right-of-way must be dedicated or acquired prior to submission of a request
for reimbursement. The value of right-of-way required to be dedicated by the owner
thereof is generally not eligible for reimbursement except under special circumstances as
recommended by the City Engineer.
B. Additional Public Improvements: If appurtenant to the types of street and
highway improvements described in A. above, the following additional improvements may
be considered for reimbursement:
1. Sewer lines or other sewer facilities: Sewer lines must be located
within the rights-of-way of the arterial streets when the City Engineer has determined it is
necessary that they be so located.
2. Water lines and other water facilities: Water lines must be located
within the public rights-of-way ofthe arterial streets when the City Engineer has determined
it is necessary that they be so located.
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3. Drainage facilities. ^
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4. Landscape and irrigation facilities.
5. Recycled water facilities.
6. Grading for eligible public streets.
7. The construction of environmental mitigation required for Eligible
Improvements.
8. Bicycle and pedestrian facilities, if located on land or easements
owned or dedicated to the City and accepted as part ofthe City wide trail system.
9. Such other improvements as may be authorized by law and which the
City Council determines are consistent with Chapter 21.90 and the applicable LFMP.
Each Eligible Improvement must be located in public rights-of-way dedicated or
otherwise granted to the City or the other Public Agency that shall own, operate or maintain
any such Eligible Improvement.
Notwithstanding the foregoing, no facility or improvement the financing of which is
included in any fee program established for the purpose of financing such facility or
improvement by the City or the other Public Agency that will own such facility or
improvement shall be considered to be an Eligible Improvement. Additionally, dry utilities or
other utility improvements that will be owned by a public utility or other private entity shall
not be considered to be Eligible Improvements.
3.40.070 Eligible Costs. Costs of an Eligible Improvement that shall be eligible for
reimbursement pursuant to the provisions of this Chapter shall include the following:
A. The actual costs of construction as determined by the City Engineer to be
reasonable and customary costs of the work performed. Costs incurred to expedite the
completion of the construction of any Eligible Improvement within a time period not
required by the City or the Public Agency that will own such Eligible Improvement will not be
eligible for reimbursement.
B. Eligible Incidental Costs, as determined by the City Engineer to be reasonable
and customary for such incidental costs, that are directly related to Eligible Improvements
the costs of construction of which shall be reimbursed from the related Reimbursement
Fees and that are identified in the "Administrative Procedures for Reimbursable Public
Works Projects" as issued by the City Engineer from time to time as Eligible Incidental Costs
for public works projects.
The following incidental costs are considered ineligible to be reimbursed from
Reimbursement Fees established pursuant to this Chapter:
Development impact fees.
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2. Administrative or overhead expenses, financial consultant, or legal
fees incurred by a Requesting Party for the establishment of a Reimbursement Fee. This
limitation does not apply to amounts advanced bythe Requesting Party to the City pursuant
to the provisions of this Chapter to pay for costs incurred by the City to undertake the
proceedings to establish Reimbursement Fees pursuant to this Chapter.
3. Land-use planning and subdivision costs and environmental review
costs related to such land use planning and subdivision.
4. Environmental impact studies, unless directly related to the project
and done separately for the project.
5. Maintenance, monitoring and endowment costs for mitigation land.
6. Construction loan interest.
7. Subdivision financial analysis.
8. Attorney's fees incurred by the property owners or their agents,
except as recommended bythe CityAttorney related to condemnation proceedings.
3.40.080 Construction of Eligible Improvements. A Requesting Party shall solicit at least
three (3) bids from licensed contractors for the construction of any Eligible Improvements
for which the Requesting Party is seeking reimbursement and shall award the contract for
the construction of such Eligible Improvements to the lowest responsible bidder. Nothing in
the preceding sentence shall prohibit a Requesting Party from including more than one such
Eligible Improvement in a single solicitation for bids. In the case where the Requesting Party
does include more than one such Eligible Improvement in a single solicitation for bids, the
Requesting Party shall award the contract forthe construction of such Eligible Improvements
to the bidder submitting the lowest aggregate bid for the construction of all such Eligible
Improvements included in such solicitation.
Following the award of a contract for the construction of an Eligible Improvement or
Eligible Improvements, the Requesting Party shall provide to the City Engineer copies ofthe
bid solicitation documents, the names of the contractors from whom such bids were
solicited, the results of the bid solicitation including the response provided by each
contractor submitting a bid or declining to submit a bid if provided and copies of the
executed construction contracts.
Following completion of the construction of the Eligible Improvements, the
Requesting Party shall submit to the City Engineer (a) copies of all change orders to the
construction contracts, all invoices for the construction of the Eligible Improvements for
which the Requesting Party is seeking reimbursement and documents satisfactory to the City
Engineer evidencing payment for the construction of the Eligible Improvements and (b)
copies of all contracts related to Eligible Incidental Costs for which the Requesting Party is
seeking reimbursement, all change orders related to such contracts, all invoices for such
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Eligible Incidental Costs and documents satisfactory to the City Engineer evidencing payment
of such Eligible Incidental Costs. All such invoices must be submitted to the City Engineer no
later than sixty (60) calendar days following acceptance by the City of the last of the Eligible
Improvements for which the Requesting Party is seeking reimbursement. Costs represented
by invoices received beyond this period of time shall not be eligible for reimbursement.
Following the receipt of such invoices, the City Engineer shall review the invoices and
shall determine whether or not the costs represented thereby are reasonable and
customary costs for the work performed or the costs incurred. If, in the opinion ofthe City
Engineer, the costs represented by the invoices are higher than that which are customary
and reasonable for such work performed or costs incurred, the City Engineer may deny
reimbursement for that portion of such costs deemed to be excessive.
3.40.090 Reimbursement Fee Studv. The City Engineer will, following receipt of the
documents required to be provided to the City Engineer pursuant to Section 3.40.040
hereto, in the exercise his or her independent professional judgment, prepare or cause to
be prepared a Reimbursement Fee Study for the requested Reimbursement Fee that will
include the following:
A. A legal description or list ofthe Assessor's Parcel Numbers of each parcel
within the applicable LFMZ, including the properties owned or being developed the
Requesting Party, upon which the City Engineer determines that a portion ofthe eligible
costs of Eligible Improvements and Eligible Incidental Costs should be fairly allocated, the
name of the owner thereof, street address thereof each such parcel, if any, and the
acreage thereof;
B. A detailed plat showing the precise locations of all of the Eligible
Improvements for which the Requesting Party has requested reimbursement shown
in relation to the parcels identified pursuant to paragraph A above;
C. A list of each of the Eligible Improvements and the estimated cost of the
construction of the Eligible Improvements and each of the estimated Eligible Incidental
Costs, as determined by the City Engineer to be reasonable and customary for such Eligible
Improvements and Eligible Incidental Costs;
D. A determination whether the any portion of the cost of the construction of
any Eligible Improvements and related Eligible Incidental Costs may be subject to
reimbursement from any existing City impact fee program. If and to the extent that any
portion of such costs is subject to reimbursement from such impact fee program, such
amount shall be deducted from estimated cost of the construction of such Eligible
Improvements and the related Eligible Incidental Costs.
E. A report identifying the burden which the development of each parcel,
including the parcels owned or being developed by the Requesting Party, identified
pursuant to paragraph A above in accordance with its zoning and general plan
designation and other existing land use entitlements, if any, will impose upon the Eligible
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Improvements and the extent to which the development of each such parcel will
contribute to the need for or burden upon such Eligible Improvements;
F. An explanation of how there is a reasonable relationship between the
Reimbursement Fee's use and the types of Projects on which the Reimbursement Fee
may be imposed;
G. A detailed description of the method of Reimbursement Fee allocation;
H. A reimbursement schedule to include a list of all LFMZ Properties
determined by the City Engineer to be subject to the proposed Reimbursement Fee with
current Assessor's parcel number, owner's name, property's street address, and the
acreage of such parcels and the proposed Reimbursement Fee applicable to each such
LFMZ Property.
Upon completion of a Reimbursement Fee Study the City Engineer shall mail a
copy of such study to the Requesting Party and the owner of each property determined
by the City Engineer to be subject to the proposed Reimbursement Fee as set forth in
such Reimbursement Fee Study, together with the notice ofthe date, time and place of a
property owner informational meeting at which the City Engineer or his or her designee
shall be available to answer questions regarding the Reimbursement Fee Study. Such
notice shall be given at no less than ten days before the date of such meeting. Such
meeting shall be scheduled to occur not less than 20 days prior to the public hearing
required to be held pursuant to Section 3.40.110 hereto.
3.40.100 Notice of Public Hearing. Upon completion of the Reimbursement Fee study
pursuant to Section 3.40.080 hereto, the time and place for a public hearing of the City
Council shall be set, as part of a regularly scheduled meeting of the City Council, at which oral
or written presentations can be made regarding the proposed Reimbursement Fee. Notice of
such public hearing shall be published pursuant to Government Code Section 6062a and such
notice shall be mailed to the Requesting Party and the owner of each parcel that may be
subject to the imposition of the proposed Reimbursement Fee at least fifteen (15) calendar
days prior to the date set for such public hearing.
3.40.110 Public Hearing and Establishment of Reimbursement Fee. The City Council shall
hold a public hearing to determine the types of Projects that shall be subject to the
Reimbursement Fee and the Reimbursement Fee that shall be imposed on each Project.
This Reimbursement Fee shall only be established if the City Council can make the
following findings:
A. The purpose and use of the. Reimbursement Fee.
B. Determine how there is a reasonable relationship between the use ofthe
Reimbursement Fee and the type of Project on which the Reimbursement Fee is imposed.
C. Determine how there is a reasonable relationship between the need for
the Eligible Improvement and the type of Project on which the Reimbursement Fee is
imposed. iQ
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At the conclusion ofthe public hearing, the City Council shall adopt a resolution
approving, conditionally approving or denying the establishment of the Reimbursement
Fee. If the City Council approves the establishment of the Reimbursement Fee, the
resolution shall attach as an exhibit thereto a copy of the reimbursement plan as adopted
by the City Council and shall set forth the method of Reimbursement Fee allocation as
approved by the City Council.
If the establishment of a Reimbursement Fee is approved, such resolution shall
establish the term that such Reimbursement Fee shall be in effect and may be collected
from LFMZ Properties subject to such fee. The term of a Reimbursement Fee shall be
consistent with the term, if any, for a reimbursement agreement specified in the LFMP
related to the LFMZ subject to the Reimbursement Fee, the terms for reimbursement
agreements or fees specified or contemplated in legislation or policies pertaining to such
reimbursement agreements or fees, including but not limited to the ordinances and
policies ofthe City, or the terms for reimbursement agreements previously established by
the City, in such order of priority; provided, however, no Reimbursement Fee shall have a
term longer than 20 years from the first day of the calendar year following the date of
adoption ofthe resolution ofthe City Council establishing such Reimbursement Fee.
Ifthe Reimbursement Fee is to be subject to escalation, the resolution shall state
the rate of escalation applicable to the Reimbursement Fee.
3.40.120 Adjustment of the Reimbursement Fee to Reflect Actual Costs. Upon
completion ofthe construction ofthe Eligible Improvements forwhich a Reimbursement
Fee has been established and acceptance of such Eligible Improvements bythe City or the
other Public Agency that will own, operate and maintain such Eligible Improvements and
receipt by the City Engineer ofthe information and documents required to be submitted
by the Requesting Party, the City Engineer shall prepare or cause an amendment to the
Reimbursement Fee study to be prepared to incorporate such actual costs ofthe Eligible
Improvements and the related Eligible Incidental Costs that are determined by the City
Engineer pursuant to Section 3.40.070 to be eligible costs. As to the Reimbursement Fee
applicable to properties owned or developed by the Requesting Party, the City Engineer
shall apply the eligible costs allocated to such properties as a credit against the
Reimbursement Fee applicable to such properties. If and to the extent that the eligible
costs allocated to any such properties are less than the Reimbursement Fee applicable to
such properties, the amount ofthe eligible costs allocable to such properties that shall be
subject to reimbursement shall be reduced by the difference between the
Reimbursement Fee applicable to such properties and such eligible costs.
Upon completion of the amendment to the Reimbursement Fee Study, the City
Engineer shall mail a copy of such amendment to the Requesting Party and the owner of
each property subject to the Reimbursement Fee, together with the notice of the date,
time and place of a property owner informational meeting at which the City Engineer or
his or her designee shall be available to answer questions regarding the amendment to
the Reimbursement Fee Study. Such notice shall be given at no less than ten days before
the date of such meeting. Such meeting shall be scheduled to occur not less than 20 days
prior to the public hearing required to be held pursuant to this Section 3.40.120 hereto.
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The existing Reimbursement Fee shall be subject to increase or decrease, as
applicable, to reflect differences between the estimated costs of the Eligible
Improvements and the Eligible Incidental Costs utilized to establish the Reimbursement
Fee and the eligible costs of such Eligible Improvements and Eligible Improvement Costs.
Such adjustments may be considered for approval by the City Council following a public
hearing thereon for which notice is given pursuant to Section 3.40.100 hereto. At such
public hearing oral or written presentations may be made regarding the proposed
adjustment in the Reimbursement Fee. At the conclusion of such public hearing, adjustments
to the Reimbursement Fee may be made by resolution ofthe City Council.
3.40.130 Adjustment of Reimbursement Fee for Specific Proiects. Upon application filed
with the City for approval of the land use entitlements to permit development and
construction of a Project to be developed on property subject to a Reimbursement Fee
established pursuant to this Chapter, the City Engineer shall prepare or cause to be
prepared an analysis of the Project based upon the land used entitlements reflected in
such application and whether there is a reasonable relationship between the amount of
the Reimbursement Fee to which such Project would be subject and the cost of the
Eligible Improvements attributable to such Project. The City Engineer shall mail a copy of
such analysis to the applicant for the entitlement and the owner of such property, if other
than the applicant, and the Requesting Party entitled to reimbursement from the
proceeds of the Reimbursement Fee not less than 20 days prior to the public hearing
described in the following paragraph.
The City Council shall, prior to imposing the payment of such Reimbursement Fee
as a condition of approval of such Project, hold a public hearing for the purpose of
determining whether there is a reasonable relationship between the amount of the
Reimbursement Fee to which such Project would be subject and the cost of the Eligible
Improvements attributable to such Project. Such public hearing may be consolidated with
any public hearing to consider the approval of the land use entitlements for such Project. In
addition to any other notice of such public hearing required by law, notice of such public
hearing shall be mailed to the owner ofthe property on which such Project is proposed to be
developed and the Requesting Party entitled to reimbursement from the proceeds of the
Reimbursement Fee not less than 15 days prior to the date of such public hearing.
At such public hearing oral or written presentations may be made regarding whether
there is a reasonable relationship between the amount of such Reimbursement Fee and the
cost ofthe Eligible Improvements attributable to such Project.
Upon the conclusion of such public hearing, the City Council shall determine whether
there is a reasonable relationship between the amount of the Reimbursement Fee to
which such Project would be subject and the cost of the Eligible Improvements
attributable to such Project. If the City Council determines that there is such a reasonable
relationship, the approval of such Project may be conditioned with the requirement for
the payment ofthe Reimbursement Fee. Ifthe City Council determines that there is not a
reasonable relationship between the amount of the Reimbursement Fee to which such
Project would be subject and the eligible cost ofthe Eligible Improvements attributable to
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EXHIBIT 1
the Project, the City Council shall adopt a resolution modifying the Reimbursement Fee so
that there is a reasonable relationship between the Reimbursement Fee, as modified, to
which such Project will be subject and the eligible cost of the Eligible Improvements
attributable to such Project.
3.40.140 Imposition of a Reimbursement Fee. Notwithstanding any provisions of the
Carlsbad Municipal Code, no permit shall be issued for any Project subject to a
Reimbursement Fee established pursuant to this Chapter except upon the condition that
the Reimbursement Fee applicable to such Project shall be paid in accordance with the
provisions of this Chapter. The obligation for the payment of a Reimbursement Fee for
any Project shall attach at the time the initial grading permit for such Project is issued.
Such obligation shall continue to apply to such Project for a period not to exceed twenty
(20) years from the first day of the calendar year following the date of adoption of the
resolution establishing such Reimbursement Fee pursuant to Section 3.40.110
notwithstanding the fact that such period may extend beyond the term of such
Reimbursement Fee established pursuant to Section 3.40.110.
3.40.150 Pavment of the Reimbursement Fee. The owner or developer of a Project
subject to the payment of a Reimbursement Fee established by the City Council pursuant
to this Chapter shall pay such Reimbursement Fee prior to issuance of any Building Permit
or Occupancy Permit for such Project; provided, however, that ifthe Carlsbad Municipal
Code provides for development impact fees assessed by the City pursuant to the Charter
of the City of Carlsbad or the Mitigation Fee Act (Chapter 5 of Division 1 of Title 7 of the
California Government Code) to be collected at a later time, then a Reimbursement Fee
collected pursuant to this Chapter shall be collected at the same time as that mandated
by the Carlsbad Municipal Code for the payment of such other fees.
In no event shall a final inspection or an Occupancy Permit be issued for any
Project subject to a Reimbursement Fee prior to the payment of such Reimbursement Fee
in full.
A Reimbursement Fee required to be paid pursuant to this Chapter shall be the
Reimbursement Fee in effect at the time of payment.
Notwithstanding anything in the Carlsbad Municipal Code or any other written
documentation to the contrary, the Reimbursement Fee applicable to a Project shall be
paid whether or not such Project is subject to conditions of approval by the City.
For Projects for which the City does not require a permit, final inspection or
issuance of an Occupancy Permit, the Reimbursement Fee applicable to a Project shall be
paid prior to use or occupancy of such Project.
3.40.160 Establishment of Funds and Use of Reimbursement Fees. Reimbursement Fees
collected under this Chapter shall be segregated into a Reimbursement Fee Fund with
separate accounts established for each separate Reimbursement Fee established
pursuant to this Chapter. Reimbursement Fees deposited in such an account may be
disbursed solely to reimburse the applicable Requesting Party for Eligible Improvements
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EXHIBIT 1
and Eligible Incidental Costs as approved by the City Council in the establishment of such
Reimbursement Fee.
No reimbursement payment shall be made to any Requesting Party until the
construction of all Eligible Improvements has been completed and such Eligible
Improvements have been accepted by the City or the other Public Agency that will own
such Eligible Improvements and the adjustment, if any, to the applicable Reimbursement
Fee pursuant to Section 3.40.120 has been approved. If a Reimbursement Fee shall have
paid at the rate initially established pursuant to Section 3.40.110 and such Reimbursement
Fee is reduced pursuant to this Section 3.40.120, the City shall refund to the payee of such
Reimbursement Fee the amount by which such Reimbursement Fee shall have been reduced
prior to disbursing any funds on deposit in the applicable account ofthe Reimbursement Fee
Fund to the Requesting Party.
3.40.161 Improvements Ineligible for Reimbursement. Notwithstanding anything to the
contrary in this Chapter, the costs of construction of improvements financed from the
proceeds of special tax bonds issued pursuant to the Mello-Roos Community Facilities Act of
1982, as amended, or limited obligation improvement bonds issued pursuant to the
Improvement Bond Act of 1915, as amended, shall not be eligible for reimbursement
pursuant to this Chapter.
EFFECTIVE DATE: This ordinance shall be effective thirty days after its
adoption; and the city clerk shall certify the adoption of this ordinance and cause the full text
of the ordinance or a summary of the ordinance prepared by the City Attorney to be
published at least once in a newspaper of general circulation in the City of Carlsbad within
fifteen days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City
Council on the _28thday of July , 2015, and thereafter,
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EXHIBIT 1
PASSED AND ADOPTED at a regular meeting ofthe City Council ofthe City of
Carlsbad on the day of _
AYES:
NOES:
ABSENT:
_, 2015, by the following vote, to wit:
APPROVED AS TO FORM AND LEGALITY:
CELIA A. BREWER, CityAttorney
MATT HALL, Mayor
ATTEST:
BARBARA ENGLESON, City Clerk
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ORDINANCE NO. CS-281
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, ADDING CHAPTER 3.40 TO THE
CARLSBAD MUNICIPAL CODE SETTING FORTH PROCEDURES
FOR THE ESTABLISHMENT OF A REIMBURSEMENT FEE FOR
FUNDING THE REIMBURSEMENT OF CERTAIN COSTS OF THE
CONSTRUCTION OF ELIGIBLE IMPROVEMENTS
WHEREAS, the Carlsbad City Council concurs that it is necessary to add Chapter 3.40
to the Carlsbad Municipal Code setting forth procedures for the establishment of a
reimbursement fee for funding the reimbursement of certain costs of the construction of
eligible improvements.
NOW, THEREFORE, the City Council of the City of Carlsbad ordains as follows:
SECTION 1: That Chapter 3.40 is added to the Carlsbad Municipal Code to read as
follows:
Chapter 3.40 CARLSBAD REIMBURSEMENT FEE
3.40.010 Short Title
3.40.020 Purpose
3.40.030 Definitions
3.40.040 Request for Establishment of a Reimbursement Fee
3.40.050 Deposits
3.40.060 Improvements Eligible for Reimbursement
3.40.070 Eligible Costs
3.40.080 Construction of Eligible Improvements
3.40.090 Reimbursement Fee Study
3.40.100 Notice of Public Hearing
3.40.110 Public Hearing and Establishment of Reimbursement Fee
3.40.120 Adjustment of the Reimbursement Fee to Reflect Actual Costs
3.40.130 Adjustment of Reimbursement Fee for Specific Projects
3.40.140 Imposition of a Reimbursement Fee
3.40.150 Payment of the Reimbursement Fee
3.40.160 Establishment of Funds and Use of Reimbursement Fees
Ill
3.40.010 Short Title. This Chapter shall be known as the "Carlsbad Reimbursement Fee."
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the various properties within such Local Facilities Management Zone.
A Local Facilities Management Plan may provide that an owner or developer of
property within the related Local Facilities Management Zone fund and construct certain
required LFMP Improvements prior to or concurrent with development of such owner's or
developer's property to comply with the phasing schedule and performance standards for
such LFMP Improvements provided for in the LFMP.
The purpose of this Chapter is to establish, in accordance with the freedom afforded
to charter cities generally and by the Charter of the City of Carlsbad, a mechanism by which
the costs of the construction of LFMP Improvements (defined in Section 3.40.030 herein)
and certain appurtenant improvements, defined in Section 3.40.030 herein collectively as
"Eligible Improvements," incurred by an owner or developer of property within a Local
Facilities Management Zone may, as required pursuant to Chapter 21.90, be fairly allocated
among the properties within such Local Facilities Management Zone and the owner or
developer that originally incurred such costs may be reimbursed by the owners of the other
properties within the Local Facilities Management Zone that would otherwise have been
responsible for financing and/or constructing all or some portion of such Eligible
Improvements as a condition of approval of the development of such properties.
3.40.030 Definitions. As used in this Chapter, the following terms shall have the following
meanings:
"Administrative Services Director" shall mean the Administrative Services Director
of the City or his or her designee.
"Building Permit" means a permit required by and issued pursuant to Chapter 18.04
ofthe Carlsbad Municipal Code.
"Chapter 21.90" means Chapter 21.90 of the Carlsbad Municipal Code as it may be
amended from time to time.
"City" shall mean the City of Carlsbad.
"City Council" shall mean the City Council of the City.
"City Engineer" shall mean the City Engineer of the City or his or her designee.
"Eligible Improvements" shall mean those improvements for which the cost of
28 construction thereof may be eligible for reimbursement pursuant to this Chapter.
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"Local Facilities Management Plan" or "LFMP" shall have the meaning given such
term in Chapter 21.90.
"LFMP Improvements" means those public facilities and improvements identified in
an LFMP that are needed to accommodate development with the LMFZ for which such
LFMP was prepared pursuant to Chapter 21.90.
"LFMZ Property" or "LFMZ Properties" means a property or the properties, as
applicable, within a Local Facilities Management Zone.
"Local Facilities Management Zone" or "LFMZ" means a local facilities management
zone established pursuant to Chapter 21.90.
"Occupancy Permit" means a permit required by and issued pursuant to Chapter
21.60 of the Carlsbad Municipal Code.
"Project" means any project undertaken on LFMZ Properties for the purpose of
development. "Project" includes a project involving the issuance of a permit for
construction or reconstruction, but not a permit to operate.
"Public Agency" shall mean any city or county, whether general law or chartered,
special district, school district or any other municipal corporation, district, or political
subdivision of the State of California.
"Reimbursement Fee" means a fee adopted pursuant to the Charter of the City of
Carlsbad, this Chapter and any City Council resolution adopted pursuant to this Chapter.
"Reimbursement Fee Study" means a study prepared or caused to be prepared by
the City Engineer pursuant to Section 3.40.090 hereto pertaining to a request for
establishment of a Reimbursement Fee.
"Requesting Party" means the owner or developer of LMFZ Property within an LFMZ
that has filed a request pursuant to Section 3.40.050 hereto that the City establish a
Reimbursement Fee pursuant to the provisions of this Chapter. "Requesting Party" also
means, collectively, the owners and/or developers of LFMZ Properties within an LFMZ that
have jointly filed such a request.
3.40.040 Request for Establishment of a Reimbursement Fee. Whenever a Requesting
Party is required by the City to construct Eligible Improvements the cost of which such
Requesting Party believes will exceed the cost fairly allocable to the Requesting Party's LFMZ
Property, the Requesting Party may file a written request with the City Engineer requesting
that the City undertake proceedings pursuant to this Chapter to consider the establishment
by the City of a Reimbursement Fee to be imposed on those LFMZ Properties located within
such LFMZ upon which a portion of the cost of such Eligible Improvements should be fairly
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Such a request shall include a description of each Eligible Improvement in sufficien
detail to enable to the City Engineer to identify each such improvement and a detailed plat
of the applicable LFMZ showing the precise location of each such Eligible Improvement with
respect to each of the LFMZ Properties. Such request must also include an engineer's
estimate of the cost of construction of such Eligible Improvements, together with an
estimate of the Eligible Incidental Costs for which reimbursement is requested. For any
request for which the Requesting Party consists of multiple owners and/or developers that
are jointly filing such request, such request must be executed by all such owners and
developers and must include the designation of one party to whom the City is authorized
and directed to make all reimbursement payments, together with an acknowledgment that
the City shall have no responsibility whatsoever for determining the allocation of
reimbursements among such owners and/or developers or making such allocation to such
owners and developers. The Requesting Party shall, at such Requesting Party's expense, also
mail a copy of such request to the owner of each LFMZ Property and the Requesting Party
shall file proof of such mailing satisfactory to the City Engineer.
The request of such Requesting Party shall not be deemed to be complete until:
A. The City Engineer has received satisfactory proof of the mailing of the
Requesting Party's request for establishment of a Reimbursement Fee; and
B. The Administrative Services Director has received the initial deposit from
the Requesting Party as required pursuant to Section 3.40.050 below.
3.40.050 Deposits. All City and consultant costs incurred in the implementation of a
request for the establishment of a Reimbursement Fee pursuant to the provisions of this
Chapter, the preparation of the Reimbursement Fee Study for such Reimbursement Fee
request, the proceedings to establish a Reimbursement Fee, the amendment of the
Reimbursement Fee Study pursuant to Section 3.40.120 and the proceedings to consider
the adjustment of a Reimbursement Fee pursuant to Section 3.40.120 will be paid by the
Requesting Party by advance deposit with the City of monies sufficient to pay all such
costs.
Each request for the establishment of a Reimbursement Fee shall be accompanied
by an initial deposit in an amount to be determined by the Administrative Services
Director to be adequate to fund the initial review of the request, preparation of the
Reimbursement Fee Study and the proceedings to implement the Reimbursement Fee
request. If additional funds are required to pay implementation costs, the Administrative
Services Director may make written demand upon the Requesting Party for such
additional funds and the Requesting Party shall deposit such additional funds with the
City within five {5) working days of the date of receipt of such demand. Upon the
depletion of the funds deposited by the Requesting Party for such costs, all work related
to the preparation of the Reimbursement Fee Study and all proceedings related to the
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XHIBIT 1
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establishment of such Reimbursement Fee shall be suspended until rece1 ~)!.¥ o
such additional funds as the Administrative Services Director may demand. '/~
The deposits shall be used by the City to pay for costs and expenses incurre y ~
the City incident to the initial review of the Reimbursement Fee request, preparation o
the Reimbursement Fee Study, proceedings for the consideration of the Reimbursement
Fee request, and the review of the actual costs of construction of the Eligible
Improvements and the Eligible Incidental Costs and proceedings for the consideration of
the adjustment of the Reimbursement Fee pursuant to Section 3.40.120, including, but
not limited to, legal, Reimbursement Fee consulting, engineering, administration and staff
costs and expenses, required notifications, printing, and publication costs.
The City shall refund any unexpended portion of the deposits if the Requesting
Party files a written request with the City Engineer that the Requesting Party is
terminating its reimbursement request.
3.40.060 Improvements Eligible for Reimbursement. Eligible Improvements must be LFMP
Improvements or other additional public improvements identified in this Section 3.40.060
below that will be owned, operated, or maintained by the City or another Public Agency and
that are constructed pursuant to and in compliance with all applicable requirements of the
City, including without limitation this Chapter, or such other Public Agency that will own,
operate or maintain such Eligible Improvements. The City Council shall have the final
determination as to the eligibility of any improvements for reimbursement. Such Eligible
Improvements may include, but are not limited to:
A. Streets and Highways: Arterial streets, highways, major bridges, and
freeway interchanges constituting LFMP Improvements for an LMFZ. If the primary
purpose of completing a circulation link is met, and overriding public interest is shown,
then public facilities increasing traffic capacity for a circulation element may be
considered. Right-of-way must be dedicated or acquired prior to submission of a request
for reimbursement. The value of right-of-way required to be dedicated by the owner
thereof is generally not eligible for reimbursement except under special circumstances as
recommended by the City Engineer.
B. Additional Public Improvements: If appurtenant to the types of street and
22 highway improvements described in A. above, the following additional improvements may
be considered for reimbursement:
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1. Sewer lines or other sewer facilities: Sewer lines must be located
within the rights-of-way of the arterial streets when the City Engineer has determined it is
necessary that they be so located.
2. Water lines and other water facilities: Water lines must be located
within the public rights-of-way of the arterial streets when the City Engineer has determined
it is necessary that they be so located.
3. Drainage facilities.
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4. Landscape and irrigation facilities.
5. Recycled water facilities.
6. Grading for eligible public streets.
7. The construction of environmental mitigation required for Eligible
Improvements.
8. Bicycle and pedestrian facilities, if located on land or easements
owned or dedicated to the City and accepted as part of the City wide trail system.
9. Such other improvements as may be authorized by law and which the
City Council determines are consistent with Chapter 21.90 and the applicable LFMP.
Each Eligible Improvement must be located in public rights-of-way dedicated or
otherwise granted to the City or the other Public Agency that shall own, operate or maintain
any such Eligible Improvement.
Notwithstanding the foregoing, no facility or improvement the financing of which is
included in any fee program established for the purpose of financing such facility or
improvement by the City or the other Public Agency that will own such facility or
improvement shall be considered to be an Eligible Improvement. Additionally, dry utilities or
other utility improvements that will be owned by a public utility or other private entity shall
not be considered to be Eligible Improvements.
3.40.070 Eligible Costs. Costs of an Eligible Improvement that shall be eligible for
reimbursement pursuant to the provisions ofthis Chapter shall include the following:
A. The actual costs of construction as determined by the City Engineer to be
reasonable and customary costs of the work performed. Costs incurred to expedite the
completion of the construction of any Eligible Improvement within a time period not
required by the City or the Public Agency that will own such Eligible Improvement will not be
eligible for reimbursement.
B. Eligible Incidental Costs, as determined by the City Engineer to be reasonable
and customary for such incidental costs, that are directly related to Eligible Improvements
the costs of construction of which shall be reimbursed from the related Reimbursement
Fees and that are identified in the "Administrative Procedures for Reimbursable Public
Works Projects" as issued by the City Engineer from time to time as Eligible Incidental Costs
for public works projects.
The following incidental costs are considered ineligible to be reimbursed from
Reimbursement Fees established pursuant to this Chapter:
1. Development impact fees.
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2. Administrative or overhead expenses, financial consultan , or '""""""T' ....
fees incurred by a Requesting Party for the establishment of a Reimbursement Fee. JH
limitation does not apply to amounts advanced by the Requesting Party to the City pursua
to the provisions of this Chapter to pay for costs incurred by the City to undertake the
proceedings to establish Reimbursement Fees pursuant to this Chapter.
3. Land-use planning and subdivision costs and environmental review
costs related to such land use planning and subdivision.
4. Environmental impact studies, unless directly related to the project
and done separately for the project.
5. Maintenance, monitoring and endowment costs for mitigation land.
6. Construction loan interest.
7. Subdivision financial analysis.
8. Attorney's fees incurred by the property owners or their agents,
except as recommended by the City Attorney related to condemnation proceedings.
3.40.080 Construction of Eligible Improvements. A Requesting Party shall solicit at least
three (3) bids from licensed contractors for the construction of any Eligible Improvements
for which the Requesting Party is seeking reimbursement and shall award the contract for
the construction of such Eligible Improvements to the lowest responsible bidder. Nothing in
the preceding sentence shall prohibit a Requesting Party from including more than one such
Eligible Improvement in a single solicitation for bids. In the case where the Requesting Party
does include more than one such Eligible Improvement in a single solicitation for bids, the
Requesting Party shall award the contract for the construction of such Eligible Improvements
to the bidder submitting the lowest aggregate bid for the construction of all such Eligible
Improvements included in such solicitation.
Following the award of a contract for the construction of an Eligible Improvement or
Eligible Improvements, the Requesting Party shall provide to the City Engineer copies of the
bid solicitation documents, the names of the contractors from whom such bids were
solicited, the results of the bid solicitation including the response provided by each
contractor submitting a bid or declining to submit a bid if provided and copies of the
executed construction contracts.
Following completion of the construction of the Eligible Improvements, the
Requesting Party shall submit to the City Engineer (a) copies of all change orders to the
construction contracts, all invoices for the construction of the Eligible Improvements for
which the Requesting Party is seeking reimbursement and documents satisfactory to the City
Engineer evidencing payment for the construction of the Eligible Improvements and (b)
copies of all contracts related to Eligible Incidental Costs for which the Requesting Party is
seeking reimbursement, all change orders related to such contracts, all invoices for such
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by invoices received beyond this period of time shall not be eligible for reimbursement.
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Following the receipt of such invoices, the City Engineer shall review the invoices and
shall determine whether or not the costs represented thereby are reasonable and
customary costs for the work performed or the costs incurred. If, in the opinion of the City
Engineer, the costs represented by the invoices are higher than that which are customary
and reasonable for such work performed or costs incurred, the City Engineer may deny
reimbursement for that portion of such costs deemed to be excessive.
3.40.090 Reimbursement Fee Study. The City Engineer will, following receipt of the
documents required to be provided to the City Engineer pursuant to Section 3.40.040
hereto, in the exercise his or her independent professional judgment, prepare or cause to
be prepared a Reimbursement Fee Study for the requested Reimbursement Fee that will
include the following:
A. A legal description or list of the Assessor's Parcel Numbers of each parcel
within the applicable LFMZ, including the properties owned or being developed the
Requesting Party, upon which the City Engineer determines that a portion of the eligible
costs of Eligible Improvements and Eligible Incidental Costs should be fairly allocated, the
name of the owner thereof, street address thereof each such parcel, if any, and the
acreage thereof;
B. A detailed plat showing the precise locations of all of the Eligible
Improvements for which the Requesting Party has requested reimbursement shown
in relation to the parcels identified pursuant to paragraph A above;
c. A list of each of the Eligible Improvements and the estimated cost of the
construction of the Eligible Improvements and each of the estimated Eligible Incidental
Costs, as determined by the City Engineer to be reasonable and customary for such Eligible
Improvements and Eligible Incidental Costs;
D. A determination whether the any portion of the cost of the construction of
any Eligible Improvements and related Eligible Incidental Costs may be subject to
reimbursement from any existing City impact fee program. If and to the extent that any
portion of such costs is subject to reimbursement from such impact fee program, such
amount shall be deducted from estimated cost of the construction of such Eligible
Improvements and the related Eligible Incidental Costs.
E. A report identifying the burden which the development of each parcel,
including the parcels owned or being developed by the Requesting Party, identified
pursuant to paragraph A above in accordance with its zoning and general plan
designation and other existing land use entitlements, if any, will impose upon the Eligible
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G. A detailed description of the method of Reimbursement Fee allocation;
H. A reimbursement schedule to include a list of all LFMZ Properties
determined by the City Engineer to be subject to the proposed Reimbursement Fee with
current Assessor's parcel number, owner's name, property's street address, and the
acreage of such parcels and the proposed Reimbursement Fee applicable to each such
LFMZ Property.
Upon completion of a Reimbursement Fee Study the City Engineer shall mail a
copy of such study to the Requesting Party and the owner of each property determined
by the City Engineer to be subject to the proposed Reimbursement Fee as set forth in
such Reimbursement Fee Study, together with the notice of the date, time and place of a
property owner informational meeting at which the City Engineer or his or her designee
shall be available to answer questions regarding the Reimbursement Fee Study. Such
notice shall be given at no less than ten days before the date of such meeting. Such
meeting shall be scheduled to occur not less than 20 days prior to the public hearing
required to be held pursuant to Section 3.40.110 hereto.
3.40.100 Notice of Public Hearing. Upon completion of the Reimbursement Fee study
pursuant to Section 3.40.080 hereto, the time and place for a public hearing of the City
Council shall be set, as part of a regularly scheduled meeting of the City Council, at which oral
or written presentations can be made regarding the proposed Reimbursement Fee. Notice of
such public hearing shall be published pursuant to Government Code Section 6062a and such
notice shall be mailed to the Requesting Party and the owner of each parcel that may be
subject to the imposition of the proposed Reimbursement Fee at least fifteen (15) calendar
days prior to the date set for such public hearing.
3.40.110 Public Hearing and Establishment of Reimbursement Fee. The City Council shall
hold a public hearing to determine the types of Projects that shall be subject to the
Reimbursement Fee and the Reimbursement Fee that shall be imposed on each Project.
This Reimbursement Fee shall only be established if the City Council can make the
following findings:
A. The purpose and use ofthe Reimbursement Fee.
26 B. Determine how there is a reasonable relationship between the use of the
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Reimbursement Fee and the type of Project on which the Reimbursement Fee is imposed.
C. Determine how there is a reasonable relationship between the need for
the Eligible Improvement and the type of Project on which the Reimbursement Fee is
imposed.
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If the establishment of a Reimbursement Fee is approved, such resolution shall
establish the term that such Reimbursement Fee shall be in effect and may be collected
from LFMZ Properties subject to such fee. The term of a Reimbursement Fee shall be
consistent with the term, if any, for a reimbursement agreement specified in the LFMP
related to the LFMZ subject to the Reimbursement Fee, the terms for reimbursement
agreements or fees specified or contemplated in legislation or policies pertaining to such
reimbursement agreements or fees, including but not limited to the ordinances and
policies of the City, or the terms for reimbursement agreements previously established by
the City, in such order of priority; provided, however, no Reimbursement Fee shall have a
term longer than 20 years from the first day of the calendar year following the date of
adoption of the resolution of the City Council establishing such Reimbursement Fee.
If the Reimbursement Fee is to be subject to escalation, the resolution shall state
the rate of escalation applicable to the Reimbursement Fee.
3.40.120 Adjustment of the Reimbursement Fee to Reflect Actual Costs. Upon
completion of the construction of the Eligible Improvements for which a Reimbursement
Fee has been established and acceptance of such Eligible Improvements by the City or the
other Public Agency that will own, operate and maintain such Eligible Improvements and
receipt by the City Engineer of the information and documents required to be submitted
by the Requesting Party, the City Engineer shall prepare or cause an amendment to the
Reimbursement Fee study to be prepared to incorporate such actual costs of the Eligible
Improvements and the related Eligible Incidental Costs that are determined by the City
Engineer pursuant to Section 3.40.070 to be eligible costs. As to the Reimbursement Fee
applicable to properties owned or developed by the Requesting Party, the City Engineer
shall apply the eligible costs allocated to such properties as a credit against the
Reimbursement Fee applicable to such properties. If and to the extent that the eligible
costs allocated to any such properties are less than the Reimbursement Fee applicable to
such properties, the amount of the eligible costs allocable to such properties that shall be
subject to reimbursement shall be reduced by the difference between the
Reimbursement Fee applicable to such properties and such eligible costs.
Upon completion of the amendment to the Reimbursement Fee Study, the City
Engineer shall mail a copy of such amendment to the Requesting Party and the owner of
each property subject to the Reimbursement Fee, together with the notice of the date,
time and place of a property owner informational meeting at which the City Engineer or
his or her designee shall be available to answer questions regarding the amendment to
the Reimbursement Fee Study. Such notice shall be given at no less than ten days before
the date of such meeting. Such meeting shall be scheduled to occur not less than 20 days
prior to the public hearing required to be held pursuant to this Section 3.40.120 hereto.
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3.40.130 Adjustment of Reimbursement Fee for Specific Projects. Upon application filed
with the City for approval of the land use entitlements to permit development and
construction of a Project to be developed on property subject to a Reimbursement Fee
established pursuant to this Chapter, the City Engineer shall prepare or cause to be
prepared an analysis of the Project based upon the land used entitlements reflected in
such application and whether there is a reasonable relationship between the amount of
the Reimbursement Fee to which such Project would be subject and the cost of the
Eligible Improvements attributable to such Project. The City Engineer shall mail a copy of
such analysis to the applicant for the entitlement and the owner of such property, if other
than the applicant, and the Requesting Party entitled to reimbursement from the
proceeds of the Reimbursement Fee not less than 20 days prior to the public hearing
described in the following paragraph.
The City Council shalt prior to imposing the payment of such Reimbursement Fee
as a condition of approval of such Project, hold a public hearing for the purpose of
determining whether there is a reasonable relationship between the amount of the
Reimbursement Fee to which such Project would be subject and the cost of the Eligible
Improvements attributable to such Project. Such public hearing may be consolidated with
any public hearing to consider the approval of the land use entitlements for such Project. In
addition to any other notice of such public hearing required. by law, notice of such public
hearing shall be mailed to the owner of the property on which such Project is proposed to be
developed and the Requesting Party entitled to reimbursement from the proceeds of the
Reimbursement Fee not less than 15 days prior to the date of such public hearing.
At such public hearing oral or written presentations may be made regarding whether
there is a reasonable relationship between the amount of such Reimbursement Fee and the
cost of the Eligible Improvements attributable to such Project.
Upon the conclusion of such public hearing, the City Council shall determine whether
there is a reasonable relationship between the amount of the Reimbursement Fee to
which such Project would be subject and the cost of the Eligible Improvements
attributable to such Project. If the City Council determines that there is such a reasonable
relationship, the approval of such Project may be conditioned with the requirement for
the payment of the Reimbursement Fee. If the City Council determines that there is not a
reasonable relationship between the amount of the Reimbursement Fee to which such
Project would be subject and the eligible cost of the Eligible Improvements attributable to
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3.40.140 Imposition of a Reimbursement Fee. Notwithstanding any provisions of the
Carlsbad Municipal Code, no permit shall be issued for any Project subject to a
Reimbursement Fee established pursuant to this Chapter except upon the condition that
the Reimbursement Fee applicable to such Project shall be paid in accordance with the
provisions of this Chapter. The obligation for the payment of a Reimbursement Fee for
any Project shall attach at the time the initial grading permit for such Project is issued.
Such obligation shall continue to apply to such Project for a period not to exceed ten {10)
years from the first day of the calendar year following the date of adoption of the
resolution establishing such Reimbursement Fee pursuant to Section 3.40.110
notwithstanding the fact that such period may extend beyond the term of such
Reimbursement Fee established pursuant to Section 3.40.110.
3.40.150 Payment of the Reimbursement Fee. The owner or developer of a Project
subject to the payment of a Reimbursement Fee established by the City Council pursuant
to this Chapter shall pay such Reimbursement Fee prior to issuance of any Building Permit
or Occupancy Permit for such Project; provided, however, that if the Carlsbad Municipal
Code provides for development impact fees assessed by the City pursuant to the Charter
of the City of Carlsbad or the Mitigation Fee Act (Chapter 5 of Division 1 of Title 7 of the
California Government Code) to be collected at a later time, then a Reimbursement Fee
collected pursuant to this Chapter shall be collected at the same time as that mandated
by the Carlsbad Municipal Code for the payment of such other fees.
In no event shall a final inspection or an Occupancy Permit be issued for any
18 Project subject to a Reimbursement Fee prior to the payment of such Reimbursement Fee
in full.
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A Reimbursement Fee required to be paid pursuant to this Chapter shall be the
Reimbursement Fee in effect at the time of payment.
Notwithstanding anything in the Carlsbad Municipal Code or any other written
documentation to the contrary, the Reimbursement Fee applicable to a Project shall be
paid whether or not such Project is subject to conditions of approval by the City.
For Projects for which the City does not require a permit, final inspection or
issuance of an Occupancy Permit, the Reimbursement Fee applicable to a Project shall be
paid prior to use or occupancy of such Project.
3.40.160 Establishment of Funds and Use of Reimbursement Fees. Reimbursement Fees
collected under this Chapter shall be segregated into a Reimbursement Fee Fund with
separate accounts established for each separate Reimbursement Fee established
pursuant to this Chapter. Reimbursement Fees deposited in such an account may be
disbursed solely to reimburse the applicable Requesting Party for Eligible Improvements
EXHIBIT 1
1 PASSED AND ADOPTED at a regular meeting of the City Council of the City of
2 Carlsbad on the 25th day of August, 2015, by the following vote, to wit:
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AYES: Hall, Blackburn, Schumacher, Wood, Packard.
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NOES: None.
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ABSENT: None.
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APPROVED AS TO FORM AND LEGALITY:
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CELIA A. BREWER, City Attorney
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16 ATTEST:
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BARBARA ENGLESON, C1ty Clerk
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!5
PROOF OF PUBLICATION
(2010 & 2011 C.C.P.)
STATE OF CALIFORNIA
County of San Diego
I am a citizen of the United States and a resident
of the County aforesaid: I am over the age of
eighteen years and not a party to or interested in
the above-entitled matter. I am the principal clerk
of the printer of
The San Diego Union Tribune
Formerly known as the North County Times and
UT North County and which newspaper has been
adjudicated as a newspaper of general circulation
by the Superior Court of the County of San Diego,
State of California, for the City of Oceanside and
the City of Escondido, Court Decree numbers
171349 & 172171, for the County of San Diego,
that the notice of which the annexed is a printed
copy (set in type not smaller than nonpa riel), has
been published in each regular and entire issue of
said newspaper and not in any supplement thereof
on the followi ng dat s, to-wi t:
August 19th, 2015
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at Oceanside, California
On This 19th, of August 2015
Jane Allshouse
The San Diego Union Tribune
Legal Advertising
This space is for the County Clerk's Filing Stamp
Proof of Publication of
Summary of Ordinance No. CS-281 per Government Code §36933(c)
An ordinance of the City c"ouncil of the City of Carlsbad, CaHfornia, adding Chapter 3.40 to the Carlsbad Municipal Code setting forth procedures for the establishment of a reimbursement fee for funding the reim· bursement of certain costs of the construction of eligible im-provements.
The proposed reimbursement fee ordinance would allow the city
to impose a development condition on properties within a Local Facilities Management Plan Zone. The development condition
would require affected properties to pay a proportional share of public improvement costs incurred by an applicant(s) con·
structing public improvements on behalf of other property own-ers also conditioned to construct the same public improvements.
T he affected properties' proportional share and related reim· bursement fee would be determined by a reimbursement fee
study. The city would act as a pass-through for the reimburse-m ent fees by collecting the reimbursement fees from the affect-ed proper ties and remitting the fees to the applicant(s) that originally incurred the construction costs of the public improve-
ments. . '
A certified copy of the full text of the proposed ordinance is post-ed in the Office of the City Clerk, 1200 Carlsbad Village Drive,
Carlsbad, CA 92008. pub: 8/19/15
..
PROOF OF PUBLICATION
(2010 & 2011 C.C.P.)
STATE OF CALIFORNIA
County of San Diego
I am a citizen of the United States and a resident
of the County aforesaid: I am over the age of
eighteen years and not a party to or interested in
the above-entitled matter. I am the principal clerk
of the printer of
The San Diego Union Tribune
Formerly known as the North County Times and
UT North County and which newspaper has been
adjudicated as a newspaper of general circulation
by the Superior Court of the County of San Diego,
State of California, for the City of Oceanside and
the City of Escondido, Court Decree numbers
171349 & 172171, for the County of San Diego,
that the notice of which the annexed is a printed
copy (set in type not smaller than nonpariel), has
been .Published in each regular and entire issue of
said newspaper and not in any supplement thereof
on the following dates, to-wit:
September OGth, 2015
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at Oceanside, California
On This oath, of September 2015
Jane Allshouse
The San Diego Union Tribune
Legal Advertising
This space is for the County Clerk's Filing Stamp
Proof of Publication of
Summary of Ordinance No. CS-281 per Government Code §36933(c)
An ordinance of the City Council of the Oty ol Carlsbad, California, adding Chap-
ter 3.40 to the Carlsbad Municipal Code setting forth procedures for the estab-
lishment of a reimbursement fee for funding the reimbursement of certain costs of the construction ol eligible Improvements.
The proposed reimbursement fee ordinance would allow the city to Impose a devel-
opment condition on properties within a Local Facilities Management Plan Zone. The
development condition would require affected properties to pay a proportional
share of public Improvement costs incurred by an applicant(s) constructing public lmprovem~n~s on behalf of other property owners also conditioned to construct the
same publoc Improvements. The affected properties' proportional share and related
reimbursement fee would be determined by a reimbursement fee study. The city
would act as a pass-through for the reimbursement fees by collecting the relmburse-m~nt fees from the affected plbpertles and remitting the fees to the appllcant(s) that
originally Incurred the construction costs of the public Improvements. .
A certified copy of the full text of the proposed ordinance Is posted In the Office of
the City Clerk, 1200 Carlsbad VIllage Drive, Carlsbad, CA 92008.
PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of Carls-
bad, California, on the 25th day of August, 2015, by the following vote, to wit:
AYES: Hall, Blackburn, Schumacher, Wood, Packard
NOES: None.
ABSENT: None. Pub: 9/06/1 s