Ordinance No. 949 - Amending the Rosemead Municipal Code By Repealing Section 12.44.020 (Park and Recreation Impact Fee) of Title 12, Chapter 12.44 and Adding Article 7 to the Establish Development Impact Fees for New Residential and NonResidential Dev.ORDINANCE NO. 949
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
AMENDING THE ROSEMEAD MUNICIPAL CODE BY REPEALING
SECTION 12.44.020 (PARK AND RECREATION IMPACT FEE) OF
TITLE 12, CHAPTER 12.44 AND ADDING ARTICLE 7 (DEVELOPMENT
FEES), CHAPTER 17.170 (DEVELOPMENT IMPACT FEES) TO TITLE
17 TO ESTABLISH DEVELOPMENT IMPACT FEES FOR NEW
RESIDENTIAL AND NONRESIDENTIAL DEVELOPMENT
THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES HEREBY ORDAIN
AS FOLLOWS:
SECTION 1 . Findings. The City Council finds and declares:
A. The City provides public services and constructs and maintains public
improvements for the benefit of residents, businesses, and employees within the City;
and
B. In 2010 the City adopted an update to the City of Rosemead General
Plan, which anticipates and plans for new development in the City through the year
2025; and
C. New development generates impacts on public services, public facilities,
and community amenities for which revenues generated through property taxes and
other means are generally insufficient to accommodate; and
D. If additional capital facilities and public services are not added as
development occurs, the existing facilities and services will not be adequate to serve the
community. This could result in adverse impacts, such as inadequate public safety
services, inadequate traffic safety and transportation improvements, inadequate parks
and recreation facilities, as well as inadequate other general government facilities; and
E. Strategy 6 (A) of the City's Strategic Plan 2014 and 2015, states: To
address a foreseeable lack of funding for future capital improvements, complete a
Development Impact Fee (DIF) study for the initiation of new fund accounts for
infrastructure improvements, and
F. To prevent undesirable consequences, and to reduce the impacts of new
development on capital facilities, equipment, and services, the City's capital facilities
must be constructed, and the City's public services must be provided, at a rate which
will accommodate the expected growth in the City; and
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G. The development impact fees established by this Chapter will be imposed
upon development projects for the purpose of mitigating the impact of the development
on the ability of the City to provide specified public improvements and services; and
H. The City has caused to be prepared a City of Rosemead Final Draft
Development Impact Fee Study, dated April 21, 2015 (Study). The Study is on file with
the City Clerk; and
I. The Study identifies the development potential of the City from the year
2014 until 2025; identifies four (4) categories of capital facilities and equipment required
to serve and accommodate new development; and provides a summary of the portion of
each improvement category's costs that can be funded by new development; and
J. The four (4) categories of capital facilities and equipment that will be
funded by the development impact fee established by this Ordinance are (1) traffic
facilities; (2) park facilities; (3) general government facilities; and (4) public safety
facilities. These capital facilities and equipment are needed to promote and protect the
public health, safety and general welfare within the City, to facilitate orderly urban
development, to maintain existing levels of service, and to promote economic and social
well- being..
K. The City Council has relied upon the factual information, analysis, and
conclusions in the Study in adopting this Ordinance.
L. It is the City's intent and desire to have developers pay for their fair share
of public costs associated with new development while at the same time facilitating
growth that is in the public interest;
SECTION 2 . The City Council finds that this Ordinance is statutorily exempt
under California Environmental Quality Act (CEQA) Section 15273 (a)(1) "Rates, Tolls,
Fairs and Charges," as well as Sections 15061 (b)(3) and 15378 (b)(4).
SECTION 3. The City Council HEREBY FINDS AND DETERMINES that
Ordinance 949 complies with the requirements of the Mitigation Fee Act (the Act),
contained in California Government Code Sections 66000 et seq.
SECTION 4. Municipal Code Amendment. Section 12.44.020 (Park and
Recreation Impact Fee) of Title 12, Chapter 12.44 (Park and Recreation Areas) of the
Rosemead Municipal Code is HEREBY REMOVED in its entirety.
SECTION 5. Municipal Code Amendment. Article 7 (Development Fees),
Chapter 17.170 (Development Impact Fees) shall be added to Title 17 of the Rosemead
Municipal Code to read as follows:
FA
Article 7 Development Fees
Chapter 17.170 Development Impact Fees
Sections:
17.170.010
Authority.
17.170.020
Findings and Purpose.
17.170.030
Definitions.
17.170.040
Establishment of DIFs.
17.170.050
Calculation and Payment of DIFs.
17.170.060
Exemptions and Credit for Existing Development.
17.170.070
Fee Adjustment
17.170.080
Fee Revenue Accounts.
17.170.090
Distribution of Impact Fee Funds.
17.170.100
Periodic Review and Inflation Adjustment.
17.170.110
Fee Refunds.
17.170.120
Fee Revision by Resolution.
17.170.130
Regulations.
17.170.010 Authority.
This Chapter 17.170 of the Rosemead Municipal Code may be referred to as the
Development Impact Fee Ordinance and is adopted pursuant to the police power of the
City and under Government Code Section 66000 et seq. (Mitigation Fee Act). All words,
phrases, and terms used in this Chapter shall be interpreted in accordance with the
definitions set forth in the Mitigation Fee Act, unless otherwise specifically defined
herein.
17.170.020 Findings and Purpose.
A. The City has prepared a Development Impact Fee Nexus Study. It shows, and the
City Council finds that there is a reasonable relationship between the purpose for
which the fees established by this Ordinance are to be used and the type of
development projects on which the fees are imposed, and between the amount of
the fees and the cost of the traffic, public safety, general government, and park
facilities or the portion of those facilities attributable to the development on which the
fees are imposed.
B. It is the intent of the City Council that the fee required by this Chapter shall be
supplementary to any conditions imposed upon a development project pursuant to
other provisions of the Municipal Code, the Subdivision Map Act, the California
Environmental Quality Act, other state and local laws, which may authorize the
imposition of project specific conditions on development.
C. It is intended that, as further provided for in this Chapter, every person who develops
or redevelops land in the City pay development impact fees established by this
Chapter, as provided herein. No developer, property owner, or other person or
entity shall be eligible to receive a building certificate of occupancy unless such
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developer, property owner, or other person or entity has first complied with all
applicable provisions of this Chapter.
17.170.030 Definitions.
For the purpose of this Chapter, the following terms shall have the meaning set forth
herein:
A. "Applicant' means the person(s) or legal entity or entities, who may also be the
property owner, who is applying for a building permit.
B. "City' means the City of Rosemead.
C. "Credit' means any amount credited against a DIF obligation for a development
project in accordance with the provisions of Section 17.170.060 (Exemptions and
Credit for Existing Development).
D. "Development Impact Fee" and "DIF" mean each and all of the development impact
fees established by this Chapter.
E. "Development Impact Fee Study," "DIF Study," and "Study ", as used in this Chapter,
mean the Final Draft Development Impact Fee Study dated April 21, 2015 and any
present and future amendments, additions, and updates to said Study, all of which
are deemed included in such definitions as used in this Chapter, which is on file with
the Community Development Department and the City Clerk.
F. "Industrial' means all industry, manufacturing, and warehouse development.
G. "Mixed Uses" includes combinations of land use types in a single project. Generally,
a Mixed Use Development consists of commercial and residential uses integrated
either vertically in the same structure or group of structures, or horizontally on the
same development site where parking, open spaces, and other development
features are shared. However, light industrial and commercial development may
also be considered as Mixed Use. In a Mixed Use Development, both uses are
considered primary uses of the land.
H. "Multi- family' or "Multi- Family Dwelling Unit' means a structure or portion thereof
containing three or more dwelling units designed for the independent occupancy of
three or more households, such as apartments and condominiums. For the purpose
of DIF calculation, a second dwelling unit as defined by Government Code Section
65852.2 and regulated by Title 17, Article 3, Chapter 17.30, Section 17.30.190 shall
also be categorized as a multi - family unit.
I. "Office" means all general, administrative business professional, corporate, and
medical and dental office development.
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J. "Project," as used in this Chapter, means the development or redevelopment
proposal that is the subject of an application for a building permit to construct
improvements on real property which are designed to be occupied for the purpose of
single - family residential, multi - family residential, retail, office, or an industrial use as
defined in this Section.
K. "Public Facilities" means public facilities identified in the Study, including a capital
improvement project list and cost estimates of the public facilities, which may be
funded by the DIFs, and may include public improvements, public services, and
community amenities.
L. "Retail" as used in this Chapter, means all commercial, retail and hotel /motel
development.
M. "Single- family" as used in this Chapter, means residential structures that do not
contain more than two dwelling units.
N. "Vacant." For the purpose of this Chapter, a nonresidential property or a multifamily
residential property shall be deemed "vacant" during the two years prior to the
issuance of the building permit for a new structure, if the property owners or property
tenants failed to maintain an active business license for the property during the
entire two year period. For the purpose of a single - family home, the property is
"vacant" if records do not show energy usage consistent with occupancy of the
building and /or adjacent single - family properties that were occupied during the two -
year period.
17.170.040 Establishment of DIFs.
Except as otherwise provided in this Chapter, an Applicant for a building permit
proposing new development shall pay the following DIFs according and pursuant to the
procedure set forth in this Chapter:
a. Traffic Facilities.
b. Public Safety Facilities.
c. General Government Facilities.
d. Park Facilities.
The amount of each DIF shall be as established by resolution of the City Council and
shall be set forth in the City's current comprehensive fee schedule in effect at the time
of project submittal into building plan check.
17.170.050 Calculation and Payment of DIFs.
A. Calculation of DIFs. The amount of the charge due under this Chapter shall be
determined at the time of submittal into building plan check for the project. Following
project submittal the City shall timely provide the applicant with a notice in writing, a
statement of the amount of the fees and notification of the 90 -day appeal period in
which the applicant may protest the imposition of the fees. Said notice shall be in
substantially the following form:
The conditions of project approval for your project, identified as
include development impact fees, more specifically described as:
(identification of the amount of the fee). The applicant is hereby notified that the 90-
day protest period to challenge such fees has begun as of the date of the fee
imposition, which date was
If the applicant fails to file a protest regarding the fees, as specified in California
Government Code § 66020, the applicant shall be legally barred from later
challenges.
B. Payment of DIFs. The full amount shall be due and payable to the City on the date of
final inspection or the date of the issuance of the certificate of occupancy, whichever
occurs later. No certificate of occupancy shall be granted for the project, no one
shall occupy the new dwelling unit or the new nonresidential building area, and no
utility connections shall be permitted until the fee is paid in full.
C. Mixed Uses. When improvement plans include more than one land use type, the
impact fee shall be calculated separately for each land use type.
17.170.060 Exemptions and Credit for Existing Development.
A. Exemptions. The following Projects are exempt from the requirement to pay DIFs:
1. The DIFs shall not be imposed upon a building permit for remodeling or for an
addition to an existing residential structure so long as the remodeling or addition
does not add a dwelling unit.
2. The DIFs shall not be imposed upon a building permit for the demolition of an
existing residential structure and the construction of a new residential structure
on the same site, provided the demolished structure was not "vacant' (as defined
in Section 17.170.030) prior to the issuance of a building permit for the new
structure.
3. The DIFs shall not be imposed on any alteration of a nonresidential structure,
where the square footage is not increased by more than two hundred (200)
square feet or ten (10) percent of the existing structure, whichever is less,
cumulatively over a two year period, unless the alteration includes an
intensification of use such as a shift to a higher cost fee category. If the
alteration includes an intensification of use a credit for the existing development
shall apply as outlined in Section 17.170.060.6.
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4. The following projects, square footage, and affordable residential units shall not
be subject to the requirements of this Chapter: places of worship, City projects,
day care centers, private K -12 schools, square footage used for outdoor dining in
the public right -of -way, and affordable housing units that are deed restricted to
very-low income and low income households.
5. The DIFs shall not be imposed upon a project that has been submitted with
complete land use development application(s) and processing fee(s) to the City's
Planning Division prior to the effective date of this Ordinance.
6. There are no other exemptions to the DIF.
B. Credit for Existing Development. For a project that involves the demolition of an
existing structure and the construction of a new structure, the applicant shall be
entitled to a credit in the amount of the applicable DIFs for the structure to be
demolished, provided that such structure has not been vacant (as defined in Section
17.170.030), and provided that no DIF shall be reduced below $0. For
nonresidential structures, the credit will be calculated based on the square footage
of the existing structure to be demolished. For residential structures, the credit will
be calculated based on the type and number of existing dwelling units to be
demolished.
17.170.070 Fee Adjustment
An applicant of any project subject to the DIFs described in this Chapter may apply to
the City Council for an adjustment, reduction, or waiver of the DIF based upon the
absence of any reasonable relationship between the impact on public facilities of that
development and either the amount of fee charged or the type of facilities to be
financed. Such requests shall be subject to the process outlined below.
A. The application shall be made in writing and filed with the City Clerk not later than
the time for filing of the request for a building permit.
B. The application shall state in detail the factual basis and legal theory for the claim of
waiver, reduction or adjustment. The applicant shall bear the burden of proof of
presenting substantial evidence to support the request for an adjustment or waiver.
C. The City Council shall consider the application at a public hearing held within sixty
(60) days after the filing of the fee adjustment application. The decision of the City
Council shall be final.
D. If a reduction, adjustment, or waiver is granted, any change in use within the project
shall invalidate the waiver, adjustment, or reduction of the fee.
17.170.080 Fee Revenue Accounts.
Pursuant to Government Code Section 66006, an Impact Fee Reserve Account is
hereby established for each fee category. The fees paid to the City pursuant to the
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provisions of this Chapter shall be deposited into the appropriate Impact Fee Reserve
Account and used solely for the purpose described in this Chapter. All monies
deposited into the Reserve Accounts shall be held separate and apart from other City
funds. All interest or other earnings on the unexpended balance in the Reserve
Account shall be credited to the Reserve Account.
17.170.090 Distribution of Impact Fee Funds.
All monies and interest earnings in each of the Impact Fee Reserve Accounts shall be
expended on the construction and related design and administration costs of
constructing public facility improvements and purchasing land and equipment identified
in the Nexus Study. Such expenditures may include, but are not necessarily limited to
the following:
A. All direct and indirect costs incurred by the City to construct facility improvements
pursuant to this Chapter, including but not limited to, the cost of land and right -of-
way acquisition, planning, legal advice, engineering, design, construction,
construction management, materials and equipment.
B. Costs of issuance or debt service associated with bonds, notes or other security
instruments issued to fund facility improvements identified.
C. Administrative costs incurred by the City in establishing or maintaining the Impact
Fee Reserve Accounts required by this Chapter, including but not limited to the cost
of studies to establish the requisite nexus between the fee amount and the use of
fee proceeds and yearly accounting and reports.
17.170.100 Periodic Review and Inflation Adjustment.
A. Periodic Review. The City shall comply with the annual and five -year reporting
requirements of the Mitigation Fee Act. For facilities to be funded by a combination
of impact fees and other revenues, identification of the source and amount of these
non -fee revenues shall be included in the report. Identification of the timing of
receipt of other revenues to fund the facilities is also important.
B. Inflation Adjustment. To account for inflation in facility construction costs, the fee
imposed by this Ordinance shall be adjusted automatically on July 1 of each fiscal
year, beginning on July 1, 2018, by a percentage equal to the appropriate
Construction Cost Index as published by Engineering News Record, or its successor
publication, for the preceding twelve (12) months.
17.170.110 Fee Refunds.
Fees collected pursuant to this Chapter which remain unexpended or uncommitted for
five or more fiscal years after deposit into the Impact Fee Reserve Account may be
refunded as provided by State law.
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17.170.120 Fee Revision by Resolution.
The amount of the DIFs and the formula for the automatic annual adjustment
established by this Chapter may be reviewed and revised periodically by resolution of
the City Council. This Chapter shall be considered enabling and directive in this regard.
17.170.130 Regulations.
The Community Development Director, or her /his designee, is authorized to adopt
written administrative regulations or guidelines that are consistent with and that further
the terms and requirements set forth within this Chapter.
SECTION 6. Severability. If any section, subsection, paragraph, sentence,
clause or phrase of this chapter is declared by a court of competent jurisdiction to be
unconstitutional or otherwise invalid, such decision shall not affect the validity of the
remaining portions of this chapter. The City Council declares that it would have adopted
this chapter, and each section, subsection, sentence, clause, phrase or portion thereof,
irrespective of the fact that any one or more sections, subsections, phrases, or portions
be declared invalid or unconstitutional.
SECTION 7. Publication. The City Clerk shall cause this Ordinance to be
published in the manner required by law.
SECTION 8. Effective Date. The Mayor shall sign and the City Clerk attest to
the passage of this Ordinance. The City Clerk shall cause the same to be published
once in the official newspaper within fifteen (15) days after its adoption. This Ordinance
shall go into effect and be in full force and effect sixty (60) days from its date of
adoption.
PASSED, APPROVED AND ADOPTED this 9 day of June, 2015.
Margare Clark, Mayor
City of Rosemead
ATTEST:
c
Gloria Molleda, City Clerk
APPROVED AS TO FORM:
Rachel H. "` Richman, City Attorney
Burke Williams and Sorensen, LLP
E
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
I, Gloria Molleda, City Clerk of the City of Rosemead, California, do hereby certify that the
foregoing Ordinance No. 949 was regularly introduced and placed upon its first reading at a
regularly meeting of the City Council on the 26th of May, 2015. Thereafter, said Ordinance was
duly adopted and passed at a regular meeting of the City Council on the 9th of June, 2015 by the
following vote to wit:
Yes:
Alarcon, Clark, Low, Ly
No:
None
Abstain:
None
Absent:
None
, t
Gloria Molleda
City Clerk