ORDINANCE NO.
AN ORDINANCE OF THE CITY OF COTATI COUNCIL ADDING CHAPTER 4.20 (DEVELOPMENT IMPACT FEE INFLATIONARY ADJUSTMENTS) TO THE COTATI MUNICIPAL CODE AND AMENDING CHAPTERS 4.14 (DEVELOPMENT IMPACT FEE DEFERALS), 17.31 (AFFORDABLE HOUSING REQUIREMENTS),
13.03 (WATER SYSTEM RULES AND REQUIREMENTS), 13.42 (SEWERS - CHARGES) AND 17.16 (DEDICATIONS AND EXACTIONS)
WHEREAS, the City has adopted various Development Impact Fees (DIF) over many years, often using different inflationary indices or time periods for annual adjustments; and WHEREAS, over time, some adopted inflationary indices no longer exist, requiring staff to seek out and utilize successor indices that best match the originally adopted index; and WHEREAS, the City Council wishes, to the greatest degree possible, to have DIFs set to adjust annually using a single index and uniform time period, utilizing a construction cost index that is in widespread use and unlikely to be phased out in the near future; and WHEREAS, the City Council therefore desires to use the Construction Cost Index, published by Engineering News Record, for San Francisco; and WHEREAS, the existing Park in Lieu fee uses a per unit cost calculation; and WHEREAS, in accordance with Assembly Bill 602, impact fees must now be calculated to be proportionate to the square footage of the project, necessitating amendments to the existing Cotati municipal code (Chapter 17.16); and
WHEREAS, on August 12, 2025, the City Council held a duly noticed public hearing and adopted a new Parks and Recreation Fee in accordance with the Mitigation Fee Act and introduced the ordinance herein; and
WHEREAS, where it can be determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to California Environmental Quality Act (CEQA) review. This general rule can be applied to activities which could be subject to the CEQA process, but which logic dictates should not be subject to CEQA review. Therefore, based on the information provided above, the proposed resolution is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines in that there is no possibility that the activity may have a significant impact on the environment.
NOW THEREFORE THE CITY COUNCIL OF THE CITY OF COTATI DOES ORDAIN AS FOLLOWS:
SECTION 1: Recitals.
The foregoing recitals are true and correct and are incorporated into the findings herein.
SECTION 2: Amendment to the Cotati Municipal Code.
Chapter 4.14 (Development Impact Fee Deferrals) is hereby amended as follows:
Chapter 4.14
DEVELOPMENT IMPACT FEE DEFERRALS
4.14.010 Deferral of fees.
A. The provisions of this chapter are not applicable to fees for services or equipment.
B. The deferral of the payment of any city impact fee from the time payment is otherwise required is not permissible except as provided in this section.
1. Only those development fees defined as such by California Government Code Section 66000(b), as may be amended or revised from time to time, and including any successor statutes or provision, are subject to deferral. Development fees deferred under this subsection B shall not be deferred for more than two years from the date when fees were otherwise due and payable. Fee deferral agreements under this subsection B shall not be assignable except in the discretion of the city attorney and with prior written consent.
2. Fee amounts of less than ten thousand dollars may not be deferred. Interest will be charged on all amounts deferred on non-residential permits in an amount equal to the average annual rate of interest earned by the city on the investment of pooled funds for the prior fiscal year. Deferral of fees for residential permits will not accrue interest.
C. An application for fee deferral under this chapter shall be filed with the department of community development at least sixty days prior to the date when the fees would otherwise be due.
D. Any deferral of fees under this title shall be documented by written agreement in a form approved by the city attorney. Deferral of fees for non-residential permits and shall be subject to prior approval by the city council. All fee deferrals shall be secured by a deed of trust and such other security as may be required by the city attorney. The applicant shall pay all title insurance, recording and any other processing fees. The unpaid fee balance, calculated at the rate in effect at the time payment was otherwise required, shall be due and payable in full upon the sale or any other transfer of the property offered as security for payment of the fee, or upon the placement of long-term financing for the project, or at such other time as may be expressly provided in the written agreement. The fee deferral agreement shall include provisions imposing penalties for delinquent accounts. The city may require such other terms and conditions for the fee deferral as it deems necessary to protect the city’s interests.
E. The council will be regularly advised of the total amount of fee deferrals that are outstanding and the status of outstanding fee deferral accounts. (Ord. 863 § 3(part), 2016).
4.14.020 Time of payment.
Unless project conditions of approval or other provisions of the Cotati Municipal Code establish a different time of payment, all development impact fees shall be paid to the city no later than at the time of final inspection or certificate of occupancy, as applicable and whichever comes first, excepting payment of school impact fees and other fees not within the jurisdiction of the city which shall be paid at the time of building permit issuance, or, if no building permit is required, fees shall be paid upon the approval of a use which requires a use permit or other permit or approval authorizing a change in use. (Ord. 863 § 3(part), 2016).
Chapter 4.20 (Development Impact Fee Inflationary Adjustments) is hereby added as follows:
Chapter 4.20
DEVELOPMENT IMPACT FEE INFLATIONARY ADJUSTMENTS
4.20.010 Inflationary Adjustments
Unless stated otherwise in this code, all development impact fees shall be increased or decreased annually by the percentage change in the Engineering News Record Construction Cost Index for San Francisco for the prior calendar year (January-December). The in-lieu fee shall be automatically adjusted, and a new schedule published effective July 1st of each year. This adjustment will offset the effects of inflation related to construction cost increases or deflationrelated cost decreases. If the Construction Cost Index is discontinued, the City Manager shall use a comparable index for determining the inflationary changes in construction.
Chapter 17.31 (Affordable Housing Requirements) is hereby amended as follows:
Chapter 17.31
AFFORDABLE HOUSING REQUIREMENTS
17.31.050 In-lieu fees.
A residential development of nine or fewer units may comply with the requirements of this chapter by paying an in-lieu fee as established by council resolution, as it may be amended from time to time. Inflationary adjustments shall be conducted in accordance with Chapter 4.20 (Inflationary Adjustments of Development Impact Fees) of this code.The council may annually review the fee and may, based on the review, adjust the fee. For any annual period during which the council does not review the fee authorized by this section, fee amounts will be adjusted once by the city manager based on the Construction Cost Index. (Ord. 930 § 5, 2024; Ord. 766 § 2 Exh. A (part), 2004).
17.31.115 Nonresidential affordable housing linkage requirements.
E. Affordable Housing In-Lieu Fee. An applicant may choose to pay a fee in lieu of providing the affordable housing units required by this section.
1. Determination of Fee. The amount of the in-lieu fee shall be established by resolution of the city council. Inflationary adjustments shall be conducted in accordance with Chapter 4.20 (Inflationary Adjustments of Development Impact Fees) of this code. Thereafter, beginning on January 1, 2008, the fee shall be increased or decreased annually by the percentage change in the Construction Cost Index for the prior year, as reflected in the third quarter Engineering NewsRecord published in November of each year. The in-lieu fee shall be automatically adjusted, and a new schedule published by the director of planning on January 1st of each year. This adjustment will offset the effects of inflation related to construction cost increases or deflationrelated cost decreases. If the Construction Cost Index is discontinued, the director shall use a comparable index for determining the changes in the median home costs for Sonoma County.
The fee shall be periodically reviewed and updated as required at least every two years to reflect any changes in the funding gap for a low-income household.
Chapter 13.03 (Water System Rules and Requirements) is hereby amended as follows:
Chapter 13.03
WATER SYSTEM RULES AND REQUIREMENTS
13.03.210 Water connection fees.
A. The amount of the connection fee shall be established by resolution of the city council.
Inflationary adjustments shall be conducted in accordance with Chapter 4.20 (Inflationary Adjustments of Development Impact Fees) of this code. Any single-family homes, planned unit developments, condominiums and multiple-family projects are charged connection fees per meter size, except for meters serving both domestic demands and the needs of fire suppression systems. If meters are oversized for serving a fire suppression system, in addition to domestic demands, the service shall be charged connection fees for the equivalent meter size calculated to adequately meet domestic demand, as approved by the city engineer, and documented in the utility account. In no case shall the connection fee be less than the equivalent of a three-quarterinch meter. Industrial and commercial uses are charged connection fees per meter size.
Connection fees are established by resolution of the city council.
1. Each year, commencing on July 1, 2013, and continuing thereafter on each July 1st, the water connection fee shall be adjusted in proportion to the change in the ENR (Engineering News- Record) Construction Cost Index for San Francisco over the prior year. The base ENR San Francisco CCI is equal to ten thousand three hundred eighty-eight and eighty-four-hundredths (June 2013).
Chapter 13.42 (Sewers - Charges) is hereby amended as follows:
Chapter 13.42
SEWERS – CHARGES
13.42.020 Connection fees.
The amount of the connection fee shall be established by resolution of the city council.
Inflationary adjustments shall be conducted in accordance with Chapter 4.20 (Inflationary Adjustments of Development Impact Fees) of this code.
Connection fees are authorized and are charged to recover the following costs:
A. Construction and/or inspection of the physical connection to the public sewer; B. Prior and estimated future outlays by the city for providing sewage collection and treatment capacity utilized to serve the premises. (Ord. 462 § 2(part), 1988).
Chapter 17.16 (Dedications and Exactions) is hereby amended as follows:
Chapter 17.76
DEDICATIONS AND EXACTIONS
17.76.030 Park land dedications and fees.
A. Purpose. This section provides for the dedication of land and/or the payment of fees to the city for park and recreational purposes. as a condition of the approval of a tentative map. This section is enacted as authorized by the provisions of Chapter 4, Article 3 of the Map Act, also known as the “Quimby Act.”
B. Applicability.
1. Land Dedication and/or Fee Payment Required. As a condition of tentative map approval, the subdivider shallresidential projects shall dedicate land and/or pay a fee, at the option of the council, in compliance with this section for the purpose of developing new or expanding rehabilitating existing park or recreation facilities. to serve the subdivision.
2. Exemptions. The provisions of this section do not apply to industrial or commercial subdivisionsprojects or those non-residential portions of mixed-use projects., condominium projects or stock cooperatives which consist of the subdivision of airspace in an existing apartment building which is more than five years old when no new dwelling units are added, or to any other subdivision exempted by Map Act Section 66477.
C. Amount of Parkland Required.
1. General Standard. It is found and determined that the public interest, convenience, health, welfare, and safety require that one acre of property for each two hundred persons residing within this city be devoted to neighborhood and community park and recreational purposes.
2. Dedication Requirement for Residential Subdivisions. The amount of contiguous acreage required to be dedicated by a residential subdivider developerfor park and recreational purposes shall be based upon the number of dwelling units expected in the subdivision. The required dedication shall be computed using the following formula:
X = .005(U)(P)
Where:
X = Amount of parkland required, in acres.
U = Total number of approved dwelling units in the subdivision.
P = 3.104 for detached single-family dwellings;
2.438 for attached single-family dwellings;
1.664 for duplexes, and multifamily dwellings containing four or fewer dwelling units;
2.107 for multifamily dwellings containing five or more unit; and
1.738 for mobilehomes.
D. Formula for Fees in Lieu of Land.
1. If the entire parkland obligation for a proposed residential subdivision project is not satisfied by dedication in compliance with subsection C of this section, the subdivider developer shall pay a fee to the city in lieu of dedication. , as a condition of tentative map approval. To the extent that the parkland obligation cannot be met, the total The fee shall equal the acreage of parkland obligation derived from the formula in subsection C of this section shall be calculated, less the amount of parkland, if any, offered for dedication by the subdividerdeveloper. The remaining parkland required shall be used in the formula in subsection C to determine the number of units of unmet need. The average square footage of all conditioned spaces in the residential portion of the development is then multiplied by the number of units of unmet need to determine the total square footage and remaining dedication requirement to be paid through in-lieu fees., times the average per-acre fair market value for the appropriate park planning area, plus twenty percent toward the cost of off-site improvements (e.g., utility line extensions).
2. The amount of the in-lieu fee shall be established by resolution of the city council.
Inflationary adjustments shall be conducted in accordance with Chapter 4.20 (Inflationary Adjustments of Development Impact Fees) of this code. For purposes of determining the required fee, the term “fair market value” shall mean the market value of the land as determined by the staff of the city, and approved by the council, immediately prior the receipt of the final map by the council. The subdivider shall notify the city of the expected submittal date of the final map at least six weeks prior to the submittal of the final map to the department, to permit the city to select a certified land appraiser and prepare an appraisal. The subdivider shall pay the city’s costs for an independent appraiser. If more than one year elapses from the date that the final map is approved by the council and the date the subdivider obtains their first building permit, the city will prepare a new appraisal and will bill the subdivider for the cost of reappraisal. Any in-lieu fees remaining unpaid after the one-year period shall be based on the new appraisal.
3. If the subdivider developer or city staff object to the valuationdedication, they may appeal the determination in compliance with Chapter 17.84 (Appeals); provided that the burden of proof on all issues shall lie with the developersubdivider.
E. Fees Only. Only the payment of fees shall be required in subdivisions of fifty parcels or less, except that when a condominium project, stock cooperative, or community apartment project exceeds fifty dwelling units, dedication of land may be required even though the number of actual parcels may be less than fifty.
FE. Criteria for Requiring Dedication and Fees. In subdivisions of over fifty lots, tThe city may require the subdivider developer to dedicate both land and pay a fee, as follows:
1. Determination of Land or Fee. Whether the city accepts land dedication or elects to require payment of a fee in lieu thereof, or a combination of both, shall be determined by consideration of the following:
a. The general plan, and the compatibility of dedication with the general plan; b. Topography, geology, access, size, shape and the location of land in the subdivision available for dedication;
c. Feasibility of dedication; and
d. Availability of previously acquired park property.
3. Procedure for Determining Land or Fee. The review authority shall determine whether the subdividerdeveloper shall dedicate land, pay in-lieu fees, or provide a combination of both, at the time of tentative map approval. The determination of the review authority shall be based on a report and recommendation from the director. The recommendation by the director and the action of the review authority shall consider the factors in subsection (EF)(1) of this section, and shall include the following:
a. The amount of land required;
b. Whether a fee shall be charged in lieu of land;
c. Whether land and a fee shall be required;
d. The location and suitability of the park land to be dedicated or use of in-lieu fees; and e. The approximate time when development of the park or recreation facility shall commence.
The determination of the city as to whether land shall be dedicated, or whether a fee shall be charged, or a combination thereof, shall be final and conclusive.
4. Land and Fees. A requirement for both land dedication and fee payment shall comply with the following standards:
a. When only a portion of the land to be subdivided developed is proposed in the general plan or applicable specific plan as the site for a local park, that portion shall be dedicated for local park purposes, and a fee computed as provided by subsection D of this section shall be paid for any additional land that would have been required to be dedicated by subsection C of this section. b. When a major part of the local park or recreational site has been acquired by the city and only a small portion of land is needed from the subdivisiondeveloper to complete the site, the remaining portion shall be dedicated, and a fee computed as provided by subsection D of this section shall be paid in an amount equal to the value offor the land that would otherwise have been required to be dedicated by subsection C of this section. The fees shall be used for the improvement of the existing park or recreational facility serving the subdivision.
5. Credit for Improvements. If the subdivider developer provides park and recreational improvements on dedicated land, the value of the improvements together with any installed equipment shall be a credit against the required fees or land.
FG. Suitability of Land to be Dedicated. Each park site proposed for dedication in compliance with this section shall be physically suited for the intended use.
1. Land which is made part of a park site for subdivision design purposes, but which is physically unsuited for park use, shall not be considered when calculating the area of the park site provided in compliance with this section. The park space provided shall be calculated from the road rights-of-way and interior property lines abutting the site, and not from any abutting roadway centerline.
2. Land intended for other than trail use shall have a maximum slope of three percent. If necessary, the site shall be graded by the subdividerdeveloper to achieve this slope, in compliance with plans approved by the city. Land with an average slope of more than three percent may be counted as part of the park dedication requirement where the review authority determines that special circumstances exist that would make the acceptance of the land in the public interest. The amount of credit against the park obligation in these cases shall be calculated as shown in Table 7-2. Greater credit for sites in excess of three percent slope may be granted in the sole discretion of the review authority, where the review authority determines that a site contains an exceptional visual, biotic, or other natural resource.
Table 7-2
Limit on Credit for Dedication of Sloping Property
Park Site Slope Credit Against Park Obligation
0 to 3% 100%
More than 3%, up to 5% 80%
More than 5%, up to 10% 60%
More than 10%, up to 15% 20%
Over 15% 0%
3. If the council determines that any of the land proposed to be dedicated is not suitable for park use, it may reject all or any portion of the land offered, and in that event the subdividerdeveloper shall instead pay a fee in compliance with subsection D of this section.
GH. Conveyance of Land, Payment of Fees. Real property being dedicated for park purposes shall be conveyed by the parcel or final map in fee simple absolute, to the city by the subdividerdeveloper, free and clear of all encumbrances except those which, in the opinion of city attorney, will not interfere with use of the property for park and recreational purposes, and which the council agrees to accept. The amount of required fees shall be deposited with the city at the time of building permit, unless deferred in accordance with Chapter 4.14 of this code. at the time of submittal of a parcel or final map. The fees shall be held by the city until the map is recorded, or the time for recordation expires. The subdivider developer shall provide all fees and instruments required to convey the land, and title insurance approved by the city attorney in favor of the city in an amount equal to the value of the land. (Ord. 766 § 2 Exh. A (part), 2004).
SECTION 3. Severability.
If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and every section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared unconstitutional or invalid.
SECTION 4. Effective Date.
This ordinance shall take effect thirty (30) days after its adoption, pursuant to the California Government Code.
SECTION 5: Publication.
The City Clerk shall cause this ordinance to be published and/or posted as required in Section 36933 of the California Government Code.
IT IS HEREBY CERTIFIED that the foregoing ordinance was introduced at a regular meeting of the City Council of the City of Cotati held on August 12, 2025, by the following vote, to wit:
RESULT:
MOVER:
SECONDER:
AYES:
IT IS HEREBY CERTIFIED that the foregoing ordinance was duly adopted at a regular meeting of the City Council of the City of Cotati held on August 26, 2025, by the following vote, to wit:
RESULT:
MOVER:
SECONDER:
AYES:
Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, City Clerk
Approved as to form:
______________________________
City Attorney
This document is a true and correct copy of Ordinance Number ### and has been published or posted pursuant to law. California Government Code § 40806
______________________________
Kevin Patterson, City Clerk