2026-08-26 Item 12C Introduce Ordinance 2026-17 Amending EMC Development Impact Fees

AGENDA REPORT
City Council

MEETING
DATE:

August 26, 2026

PREPARED
BY:

Tom Gallup,
Finance Director

DEPARTMENT
DIRECTOR:

Tom Gallup
DEPARTMENT: Finance CITY
MANAGER:

Jennifer Campbell
SUBJECT:

Introduction of Ordinance 2026-17 Amending Title 23 (Building and Construction) of the Encinitas Municipal Code Regarding Development Impact (Mitigation) Fees RECOMMENDED ACTION:

Introduce Ordinance 2026-17 titled, “An Ordinance of the City Council of the City of Encinitas, California, Amending Encinitas Municipal Code Title 23 (Building and Construction) Regarding Development Impact (Mitigation) Fees” (Attachment 1).

ENVIRONMENTAL CONSIDERATIONS:

The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The action is also exempt from CEQA under Section 15378(b)(5) of the CEQA Guidelines because it involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment.

This item does not relate to the Climate Action Plan.

GENERAL PLAN/CITY COUNCIL FOCUS AREAS:

This agenda item relates to the Circulation, Public Safety, Resource and Recreation Elements of the General Plan.

This agenda item relates to the Effective and Reliable City Services, Infrastructure and Communications Focus Area of the FY 2026-27 Workplan.

FISCAL CONSIDERATIONS:

There is no direct fiscal impact associated with the recommended action. 2026-08-26 Item #12C Page 1 of 41
BACKGROUND:

California’s Assembly Bill (AB) 1600, adopted in 1987 and codified as California Government Code Section 66000 et. seq., (also known as the Mitigation Fee Act) allows the City to impose development impact fees, also known as mitigation fees, on new development within the City.

Development impact fees are a one-time charge on new development that is collected and used by the city to cover the cost of capital facilities, infrastructure, vehicles, and equipment that are required to serve new growth. Chapters 23.92 through Chapter 23.98 of the Encinitas Municipal Code (EMC) establish the imposition of development impact fees on development projects.

On May 20, 2026, the City Council adopted Resolution No. 2026-34 adopting a Citywide Development Impact Fee Nexus Study, amending the City’s Development Impact Fees and approving a Capital Improvement Plan as part of the Nexus Study. A Development Impact Fee Nexus Study is an analysis required by the Mitigation Fee Act that demonstrates the need for additional backbone infrastructure and facilities to serve anticipated growth and identifies the associated costs of those infrastructure facilities and how these costs are recovered through development impact fees. The purpose of the Nexus Study is to demonstrate that the fees are reasonably related and proportionate to the impacts of new development, and all fee components comply with the Mitigation Fee Act. The assumptions, methodologies, facility standards, costs, and cost allocation factors that were used to establish the nexus between the fees and the development on which the fees will be charged are summarized in the Citywide Nexus Study dated May 2026.

The Citywide Development Impact Fee Nexus Study prepared by Harris & Associates and dated May 2026 satisfies the AB 1600 Nexus requirements, AB 602 requirements, and provides the necessary technical analysis to support the adoption of updated development impact fees. The following is an overview of the recommended updates to the city’s development impact fee program found in the Nexus Study:

1. Amend existing development impact fees based on the findings in the Nexus Study.

These are included in the Development Impact Fee Schedule effective July 20, 2026.

2. Add a new program Administration Fee of five percent (5%) to fund the costs of the city’s management and ongoing fee program administration, collection, and mandated reporting, based on an analysis of the administrative cost necessary to support the development impact fee program and comply with the administrative requirements of AB 602.

3. Change the methodology for calculating residential impact fees from a per unit basis to square footage to comply with the proportionality requirement of AB 602.

4. Establish annual fee adjustments based on the Engineering News Record Construction Cost Index (ENR-CCI) for Los Angeles (which applies to the Southern California region, including San Diego County) to account for rising infrastructure costs.

5. Collect applicable development impact fees for qualifying residential development projects upon final inspection or issuance of the certificate of occupancy, consistent with the requirements of Senate Bill (SB) 937, codified in Government Code Section 66007. 2026-08-26 Item #12C Page 2 of 41
ANALYSIS:

Following adoption of Resolution No. 2026-34, staff conducted a comprehensive review of the EMC to identify areas that were inconsistent with current practice, procedure, language, and/or law, and to prescribe revisions to address these issues. Staff recommends reorganizing and updating the EMC as reflected in Attachment 1, Exhibit B to comply with current regulations, add more comprehensive language where applicable, improve management and regulation of the City’s development impact fee program, and align with the recently adopted Nexus Study.

Ordinance No. 2026-17, upon adoption will replace Chapter 23.92 through Chapter 23.98 from Title 23 of the EMC (Attachment 1, Exhibit A) with Chapter 23.100 through Chapter 23.110 (Attachment 1, Exhibit B). A list of notable, high-level changes is briefly described below:
 Incorporate the provisions of AB 602 which went into effect in 2022 and added Section 66016.5 to the Mitigation Fee Act requiring that, when applicable, the nexus study identifies the existing level of service for each public facility, identifies the proposed new level of service, and includes an explanation of why the new level of service is appropriate.  Provide consistent organization and formatting throughout the chapter and subsections.  Provide that the City Council adopt development impact fees by resolution.  Fees are categorized into Residential (Single Family and Multi Family) and NonResidential (Commercial, Office and Industrial).  Calculate fees imposed on housing development projects proportionately to the livable square footage of the proposed units, rather than per dwelling unit, in compliance with Government Code Section 66016.5.
 Remove the specified amount for the Flood Control Fee in EMC Chapter 23.96.  Automatically adjust development impact fees annually in July of each calendar year, using the ENR-CCI for the Los Angeles Region for the twelve-month period ending in April or a similar published index if the ENR-CCI Index is no longer available.  Add new chapters for General Provisions for Development Impact Fees, Parkland Development Impact Fee, Community Facilities Impact Fee, Open Space Acquisition Impact Fee, Recreational Trails Impact Fee, and Program Administrative Fee.  Create a separate chapter for the San Diego Association of Government’s (SANDAG) Regional Transportation Congestion Impact Program (RTCIP) fee which is currently referenced in the same chapter (Chapter 23.94) as the City’s Traffic Mitigation Fee.  Specify exemptions under the California Mitigation Fee Act (Government Code Section 66000 et seq.).
 Incorporate provisions of Government Code Section 66007 (SB 937) which revised the timing of development impact fee collection for qualifying residential development projects.

Under SB 937, applicable impact fees are generally determined based on the fee schedule in effect at the time a complete or preliminary application is submitted and are deferred until project completion at the time of certificate of occupancy. 2026-08-26 Item #12C Page 3 of 41
ATTACHMENT(S):

1. Ordinance 2026-17 titled, “An Ordinance of the City Council of the City of Encinitas, California, Amending Encinitas Municipal Code Title 23 (Building and Construction) Regarding Development Impact (Mitigation) Fees”
a. Exhibit A - Encinitas Municipal Code Chapter 23.92 through Chapter 23.98 b. Exhibit B – Proposed amendments (Chapter 23.100 through Chapter 23.110) 2026-08-26 Item #12C Page 4 of 41
ORDINANCE 2026-17

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA, AMENDING ENCINITAS MUNICIPAL CODE TITLE 23 (BUILDING AND CONSTRUCTION)

REGARDING DEVELOPMENT IMPACT (MITIGATION) FEES
WHEREAS, the Mitigation Fee Act (AB 1600), codified as California Government Code Section 66000 et. seq., authorizes the City to impose development impact fees on new development within the City, and
WHEREAS, the Encinitas Municipal Code Title 23 imposes upon new residential and non-residential development the requirement to pay development impact fees, and WHEREAS, the City Council adopted Resolution No. 2026-34 on May 20, 2026, adopting a Citywide Development Impact Fee Nexus Study, amending the City’s schedule of development impact fees and adopting a capital improvement plan as part of the Nexus Study, and
WHEREAS, the Encinitas Municipal Code must be amended to reflect the results of Nexus Study, including the findings and methodology for calculating and collecting the development impact fees contained therein and compliance with the California Government Code.

NOW, THEREFORE, the City Council of the City of Encinitas, California, hereby ordains as follows:

SECTION ONE: RECITALS. The foregoing recitals are true and correct.

SECTION TWO: ENCINITAS MUNICIPAL CODE AMENDMENT
That Encinitas Municipal Code Chapters 23.92, 23.94, 23.96, and 23.98 are hereby removed from the Encinitas Municipal Code (Exhibit A) in their entirety.

New Chapters 23.100 (“General Provisions for Development Impact Fees”), 23.101 (“Park Development Impact Fee”), 23.102 (“Parkland Acquisition Impact Fee”), 23.103 (“Community Facilities Impact Fee”), 23.104 (“Open Space Acquisition Fee”), 23.105 (“Recreational Trails Impact Fee”), 23.106 (“Fire Mitigation Impact Fee”), 23.107 (“Traffic Mitigation Impact Fee”), 23.108 (“Flood Control Management Impact Fee”), 23.109 (“Program Administration Fee”), 23.110 (“Regional Transportation Congestion Improvement Program [RTCIP] Fee”) are hereby added to the Encinitas Municipal Code as shown in Exhibit B to this Ordinance.

SECTION THREE: ENVIRONMENTAL COMPLIANCE.

ATTACHMENT 1
2026-08-26 Item #12C Page 5 of 41
SECTION FOUR: CONSISTENCY.

Any provision of the Encinitas Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance.

SECTION FIVE: SEVERABILITY.

If any chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance or its application to other persons. The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, phrases, or portions of the application thereof to any person, be declared invalid or unconstitutional.

SECTION SIX: EFFECTIVE DATE.

This Ordinance shall take effect and be in force thirty (30) days after its passage and the City Clerk of the City of Encinitas is hereby authorized to use summary publication procedures pursuant to Government Code Section 36933 utilizing the Coast News, a newspaper of general circulation published in the City of Encinitas.

This Ordinance was introduced at a regular meeting of the City Council held on August 26, 2026.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council held on the _____ day of __________________.

______________________________
Bruce Ehlers, Mayor
ATTEST:
______________________________________
Pete Weichers, City Clerk

APPROVED AS TO FORM
______________________________________
Ajit Thind, City Attorney
CERTIFICATION: I, Pete Weichers, City Clerk of the City of Encinitas, California, do hereby certify under penalty of perjury that the foregoing ordinance was duly and regularly introduced at a meeting of the City Council on the 26th day of August 2026 and that thereafter the said ordinance was duly and regularly adopted at a meeting of the City Council on the _____ of _________________, 2026 by the following vote, to wit:
2026-08-26 Item #12C Page 6 of 41
AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Encinitas, California, this _____ day of ______, 2026
_____________________________________
Pete Weichers, City Clerk

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§ 23.92.010 § 23.92.030
CHAPTER 23.92

FIRE MITIGATION FEE
§ 23.92.010. Purpose.

In order to implement the goals and objectives of the Public Safety Element of the City of Encinitas' General Plan, and to mitigate the impacts caused by new development in the City, certain fire protection facilities must be constructed. The City Council has determined that a development impact fee is needed in order to finance these public improvements, and to pay for new development's fair share of the construction of these improvements. It is the purpose of this chapter to assess and collect fees during the subdivision or building permit processing to finance the cost of additional fire protection facilities and equipment necessitated by new development. In establishing the fee described in the following sections, the City Council has found the fee to be consistent with the City's General Plan, and pursuant to Government Code Section 65913.2, the City has considered the effects of the fee with respect to the City's housing needs as established in the Housing Element of the General Plan. (Ord. 91-22)
§ 23.92.020. Requirement.

A. The fire mitigation fee shall be determined by the Fire Chief or his/her designated agent, and satisfied by the applicant as a condition of approval of the development project. If the new development is in a new subdivision as defined by Government Code Section 66424, the fee shall be paid by the applicant during the subdivision processing as a condition of the approval of the proposed final or parcel map; or at the subdivider's option, a covenant may be executed burdening each lot for a pro rata share of the fee, due as a condition of the issuance of a building permit. If the development is not in a new subdivision, the fee shall be paid by the applicant as a condition of the granting of a building permit for the proposed development.

B. In accordance with Government Code Section 66007, in the case of a residential development, the City shall require the applicant to satisfy the fee requirement prior to the issuance of the certificate of occupancy, as a condition of approval of the development, only if the City has established a separate account for the public improvements or facilities for which the fees will be collected and has adopted a proposed construction plan prior to the final inspection, or if the fees are reimbursement to the City for expenditures previously made.

C. The requirement to pay the fire mitigation fee may be satisfied by the applicant by dedicating land or donating facilities or equipment to the fire agency serving the City. The Fire Chief or his/her designated agent shall determine whether to require a dedication of land and/or donation of facilities and equipment, impose a requirement to pay fees, or require a combination of both for the purpose of fire protection facilities acquisition and construction. The value of any land, facilities, or equipment shall be credited to the applicant's fire mitigation fee requirement. (Ord. 91-22)

EXHIBIT A
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§ 23.92.030 § 23.92.070
§ 23.92.030. Exemptions.

The following development is exempt from the regulations of this chapter:

A. Swimming pools;
B. Fences;
C. Residential accessory structures to an existing unit; D. Construction for public or governmental purposes;
E. Remodels of existing residential structures which do not add new units; or F. Development involving the replacement on the same parcel by the owner of a dwelling unit or dwellings destroyed by fire or other calamity, provided that the application for a building permit to replace such dwelling or dwellings is filed within six months after destruction and that the number of dwelling units is not increased.
(Ord. 91-22)
§ 23.92.040. Distribution and Use of Funds.

A. The fees collected in accordance with this chapter shall be used to provide capital facilities and equipment for fire prevention and control, to include station construction, station expansion and fire apparatus acquisition.

B. Fees shall be distributed to the fire agency serving the City as received.

C. Fees paid pursuant to this section shall be deposited by the fire agency in a segregated fund identified as the "fire mitigation fee fund." D. Prior to the receipt of fees, the fire agency shall adopt a resolution establishing a fire mitigation fee program within the fire agency jurisdiction. The form and content of the resolution must be first approved by the City Manager. (Ord. 91-22)
§ 23.92.050. Residential Development.

Fire mitigation fees shall be set in an amount as determined by a City Council resolution and kept in the office of the City Clerk.
(Ord. 91-22; Ord. 2011-06)
§ 23.92.060. Other Development.

Fire mitigation fees shall be set in an amount as determined by a City Council resolution and kept in the office of the City Clerk.
(Ord. 91-22; Ord. 2011-06)
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§ 23.92.070 § 23.92.070
§ 23.92.070. Fee Adjustment.

A developer of any project subject to the fee described in this chapter may apply to the Fire Chief for a reduction or adjustment of the fee based upon the absence of any reasonable relationship or nexus between the fire protection impacts of that development and the amount of the fee charged. The application shall state in detail the factual basis for the claim of waiver or reduction. The application shall be made in writing to the Fire Chief at the time of the filing of the request for a final or parcel map, or for a building permit. The Fire Chief shall consider the fee adjustment application within 30 days of the filing of the application. If a reduction or waiver is granted, any change in use within the project which results shall subject the development to payment of the full fee. (Ord. 91-22; Ord. 2017-07)
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§ 23.94.010 § 23.94.020
CHAPTER 23.94

TRAFFIC MITIGATION FEE
§ 23.94.010. Purpose.

In order to implement the goals and objectives of the Circulation Element of the City of Encinitas' General Plan and the San Diego Association of Government's (SANDAG) Regional Transportation Plan, and to mitigate the impacts caused by new development in the City, certain traffic facilities must be constructed. The City Council has determined that a development impact fee is needed in order to finance these public improvements, and to pay for the development's fair share of the construction of these improvements.

It is the purpose of this chapter to impose on persons developing real property a requirement to pay a fee to provide for the traffic facilities needed to serve the development. In establishing the fee described in the following sections, the City Council has found the fee to be consistent with the City's General Plan, and pursuant to Government Code Section 65913.2, the City has considered the effects of the fee with respect to the City's housing needs as established in the Housing Element of the General Plan.
(Ord. 2008-08; Ord. 2014-04)
§ 23.94.020. Requirement.

A. The traffic mitigation fee shall be determined by the City Engineer, and satisfied by the applicant as a condition of approval of the development project. If the new development is in a new subdivision as defined by Government Code Section 66424, the fee shall be paid by the applicant during the subdivision processing as a condition of the approval of the proposed final or parcel map; or at the subdivider's option, a covenant may be executed burdening each lot for a prorata share of the fee, due as a condition of the issuance of a building permit. If the development is not in a new subdivision, the fee shall be paid by the applicant as a condition of the granting of a building permit for the proposed development.

B. In accordance with Government Code Section 66007, in the case of residential development the City shall only require the applicant to satisfy the fee requirement as a condition of approval of the development prior to the issuance of a certificate of occupancy. Unless the fees are reimbursement to the City for expenditures previously made, the fees will be payable to the City and placed in a separate account to fund the construction for the needed public improvements or facilities resulting from the development.

C. The City may allow a credit in the amount based upon the value of on and off-site road improvements constructed by the developer and dedicated to the City which provide facilities as specified in the City's Transportation Element, and for which the fee could be used in accordance with the provisions of this chapter.

D. The fees imposed by this chapter shall not be considered to be in lieu of the dedications of land adjacent to the development and adjacent road improvements which are required to be constructed by the developer by the City's requirements as 2026-08-26 Item #12C Page 11 of 41
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§ 23.94.020 § 23.94.060
specified in the Encinitas Municipal Code.
(Ord. 2008-08; Ord. 2014-04)
§ 23.94.030. Exemptions.

The following development is exempt from the regulations of this chapter:

A. Construction for public or governmental purposes;
B. Replacement or remodels of existing residential structures which do not add new units; or
C. Residential accessory units as defined in Municipal Code Section 30.48.040V. (Ord. 2008-08; Ord. 2014-04)
§ 23.94.040. Use of Funds.

A. Fees paid pursuant to this chapter shall be deposited in an account identified as the "Traffic Mitigation Fee Fund," except for exactions and administrative fees collected pursuant to SANDAG Commission Ordinance 04-01, Transnet Extension Ordinance and Expenditures Plan, which shall be deposited into an account identified as the "Regional Transportation Congestion Improvement Program Fund."
B. The fees deposited in the traffic mitigation fee fund shall be used solely for the construction and reconstruction of Circulation Element streets and traffic facilities.

C. The fees deposited in the regional transportation congestion improvement program fund shall be used in accordance with SANDAG Commission Ordinance 04-01. (Ord. 2014-04)
§ 23.94.050. Traffic Mitigation Fees.

Traffic mitigation fees shall be set in an amount as determined by a City Council resolution and kept in the office of the City Clerk.

The fees shall be adjusted on July 1st of each year beginning in 2015. The fees shall be increased in an amount approved by the SANDAG Board of Directors that does not exceed the percentage increase set forth in the Engineering Construction Cost Index published by the Engineering News Record or similar cost of construction index with a minimum increase of two percent.
(2011-06; Ord. 2014-04)
§ 23.94.055. Single-Family and Other Residential Fee Calculation.

The traffic mitigation fee for single-family and other residential developments will be charged per dwelling unit.
(Ord. 2014-04)
§ 23.94.060. Other Development Fee Calculation.
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§ 23.94.060 § 23.94.070
A. The calculation of the traffic mitigation fee for other developments including rural residential and nonresidential projects will be based on the traffic mitigation fee for single family multiplied by the peak hour trip generated by the development project.

Where relevant to the fee, the square footage of the proposed development project will be based on the gross square footage within the structure. If applicable to the specific development, the peak-hour-trips will be reduced by a factor that is based upon the number of pass-by-trips. The fee shall be determined as follows:

Single-Family
Peak-Hour-Trips
X Traffic Mitigation
Fee
X Reduction Factor for
Pass-by-Trips if
Applicable
= Total Fee
B. If the proposed project will not fully develop the proposed lot, then a prorated fee shall be paid, and a covenant shall be executed agreeing to pay an additional fee for all future development which expands the coverage development of the lot. If a general plan amendment changes the density for designation of use for the subject lot, the calculation of the fee for subsequent development will be determined in accordance with the then existing General Plan designation.

C. To determine peak-hour-trips generated by nonresidential development, the City Engineer, or designee, will refer first to the City's most current schedule of peakhour-trips and reduction factors, which is established by resolution of the City Council and revised periodically. If the specific proposed use is not identified on this schedule, the City Engineer, or designee, will refer to the San Diego Association of Government's (SANDAG) most recent "Traffic Generators' Manual's (Not So) Brief Guide of Vehicular Traffic Generation Rates for San Diego Region." If the peak hour and applicable reduction factor data is absent from both of these schedules, the applicant will be required to submit a traffic study or other relevant factual data which demonstrates the traffic impacts of the development to the satisfaction of the City Engineer.
(Ord. 2000-08; Ord. 2014-04)
§ 23.94.070. Fee Adjustment.

A developer of any project subject to the fee described in this chapter may apply to the City Engineer for a reduction or adjustment of the fee based upon the absence of any reasonable relationship or nexus between the traffic impacts of that development and the amount of the fee charged. The application shall state in detail the factual basis for the claim of waiver or reduction, and shall be accompanied by a traffic study demonstrating that the cost of mitigating the traffic impacts of the development is less than the amount of the fee charged for the development. The application shall be made in writing to the City Engineer at the time of the filing of the request for a final or parcel map, or a building permit, and shall bear the seal of a traffic engineer licensed by the State of California. The City Engineer shall consider the fee adjustment application within 30 days of the filing of the application. If a reduction or waiver is granted, any subsequent change in use which results in an increase in peak-hour-trips or pass-by-trip reduction factors within the project shall subject the development to payment of the full fee. 2026-08-26 Item #12C Page 13 of 41
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§ 23.94.070 § 23.94.070
(Ord. 2000-08; Ord. 2014-04; Ord. 2017-07)
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§ 23.96.010 § 23.96.030
CHAPTER 23.96

FLOOD CONTROL FEES
§ 23.96.010. Purpose.

A. It is the purpose of this chapter to impose on persons developing real property the requirement to pay a fee to provide for flood control facilities needed to serve the development.

B. "Impervious surface" means a surface which covers the ground, is not covered by another surface and is constructed of a material or in a manner in which water may pass over the surface.
(Ord. 87-19)
§ 23.96.020. Requirement.

A. A flood control fee shall be determined by the City and paid by the applicant during the subdivision processing of a proposed development if the provisions of this chapter can be applied lawfully to the proposed development during the subdivision processing. Otherwise, the flood control fee shall be determined by the City and paid by the applicant during the building permit processing of the proposed development, or portion thereof, if the provisions of this chapter can be applied lawfully to the proposed development, or portions thereof, during the building permit processing.

B. The requirement to pay a flood control fee for property within a project may be satisfied by the applicant as a condition of approval of a discretionary land use permit.
(Ord. 87-19)
§ 23.96.030. Exemptions.

The following are exempt from the regulations of this chapter:

A. Swimming pools;
B. Fences;
C. Additions or alterations to existing structures which add no more than 500 square feet of impervious surface. Additions and alterations constructed during the five years prior to the application shall be included in determining the square footage of the impervious surface involved;
D. Construction for public or governmental purposes;
E. Development involving the replacement on the same parcel by the owner of a structure destroyed by fire or other calamity, provided that the application for a building permit to replace such structure is filed within six months after destruction; and
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§ 23.96.030 § 23.96.070
F. Commercial greenhouses.
(Ord. 87-19)
§ 23.96.040. Use of Funds.

A. The fees and dedications received in accordance with this chapter shall be used for the construction of planned drainage facilities for the removal of surface and stormwaters from the City of Encinitas, as shown on the San Diego County Flood Control Plan adopted in 1977.

B. Fees paid pursuant to this chapter shall be deposited into an account identified as the "flood control fund."
(Ord. 87-19)
§ 23.96.050. Determination of Fee.

Each person seeking to develop a project which is within the City of Encinitas shall pay a flood control fee of 21 cents per square foot of impervious surface resulting from the completion of the project.
(Ord. 87-19)
§ 23.96.060. Calculation of Fee.

A. Based on a determination by the City Engineer, the calculated fee may be proportionately reduced to the degree that the property owner constructs on-site collection and retention systems that will retain run off water on the property. The granting of this credit shall require the recording of a covenant by the property owner agreeing to maintain the collection and retention system in lieu of paying the entire calculated fee.

B. Any flood control dedications of land or improvements by the developer and accepted by the City shall be a credit against the amount of the fee owing.

C. The construction and dedication of drainage facilities may be required as a condition to the approval of a discretionary land use permit. (Ord. 87-19)
§ 23.96.070. Annual Review.

A. In January of each year, the City Council shall consider the current fee. If the fee is no longer related to the actual or estimated cost of additional flood control facilities needed to serve the new development within the City, the City Council shall amend the ordinance to reflect the change in cost.

B. An increase in the fee adopted in accordance with the provision of this section shall be effective July 1st of the year in which the new fee is adopted. (Ord. 87-19)
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§ 23.98.010 § 23.98.030
CHAPTER 23.98

PARKLAND ACQUISITION AND IMPROVEMENTS
§ 23.98.010. Purpose.

In order to meet the specifications of the City's recreational space and facilities standards and to implement the goals and objectives of the Recreation Element of the City of Encinitas' General Plan, additional land must be purchased and certain facilities must be constructed. The City Council has determined that a land dedication requirement or inlieu fee and a park improvement fee are needed in order to meet the cost of acquiring and improving parkland to serve new development, and to pay for the development's fair share of these acquisitions and improvements. It is the purpose of this chapter to impose on persons developing real property an obligation to provide land or in-lieu fees and park improvement fees for park and recreation purposes. The combined dedication/ in-lieu fee and park improvement fee shall be referred to as the parkland acquisition and improvement fee. In establishing the fee described in the following sections, the City Council has found the fee to be consistent with the City's General Plan, and consistent with the requirements of Government Code Sections 66000 et seq. (Ord. 2000-09)
§ 23.98.020. Requirement.

A. The parkland acquisition and improvement fee shall be determined by the Director of Parks and Recreation or his/her designated agent, and satisfied by the applicant as a condition of approval of the development project. If the new development is in a new subdivision as defined by Government Code Section 66424, the fee shall be paid by the applicant during the subdivision processing as a condition of the approval of the proposed final or parcel map; or at the subdivider's option, a covenant may be executed burdening each lot for a prorata share of the fee, due as a condition of the issuance of a building permit. If the development is not in a new subdivision, the fee shall be paid by the applicant as a condition of the granting of a building permit for the proposed development.

B. In accordance with Government Code Section 66007, in the case of residential development, the City shall only require the applicant to satisfy the fee requirement as a condition of approval of the development, and prior to the issuance of a certificate of occupancy. Unless the fees are reimbursement to the City for expenditures previously made, the fees will be payable to the City and placed in a separate account to fund the construction for the needed public improvements or facilities resulting from the development.
(Ord. 2000-09; Ord. 2003-04)
§ 23.98.030. Exemptions.

The following development is exempt from the regulations of this chapter:

A. Replacement or remodels of existing residential structures which do not add new units; or
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§ 23.98.030 § 23.98.050
B. Residential accessory units as defined in Municipal Code Section 30.48.040V. (Ord. 2000-09)
§ 23.98.040. Use of Funds.

A. The fees received in accordance with this chapter shall be used for the acquisition of parkland and the construction of park facilities serving the proposed development in a manner consistent with the City's recreational space and facilities standards.

B. The fees paid pursuant to this chapter shall be placed in a segregated fund identified as the "park fee fund."
C. Land and fees extracted in accordance with Section 23.98.040 of this chapter shall be administered in accordance with and used only for purposes authorized by Government Code Section 66477.
(Ord. 2000-09)
§ 23.98.050. Residential Subdivision Land Dedication Obligation and In-Lieu Fee.

A. The Director of Parks and Recreation or his/her designated agent shall determine whether to require a dedication of land, impose a requirement to pay fees, or require a combination of both for park acquisition and construction purposes.

B. In accordance with Government Code Section 66477, a person seeking to construct a residential development project in a new subdivision shall be obligated to dedicate three acres of undeveloped parkland per new 1,000 population. The amount of land to be dedicated shall be determined as follows:

3.0 acres
1,000 population
X Population per dwelling
unit
= Land dedication
per dwelling unit
C. In accordance with Government Code 66477(a)(7), only the payment of fees may be required in subdivisions containing 50 parcels or less, except that when a condominium project, stock cooperative, or community apartment project, exceeds 50 dwelling units, dedication of land may be required notwithstanding that the number of parcels may be less than 50.

Parkland Acquisition and Improvement fees shall be set in an amount as determined by a City Council resolution and kept in the office of the City Clerk.

D. As required by Government Code 66477(d), the City shall allow planned developments, real estate developments, stock cooperatives, community apartment projects and condominiums credit in an amount based on open space within the development which is usable for active recreational uses.

E. In accordance with Government Code 66477(d), this section does not apply to commercial or industrial subdivisions, and has limited application to condominium projects or stock cooperatives which consist of the subdivision of airspace in an 2026-08-26 Item #12C Page 18 of 41
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§ 23.98.050 § 23.98.090
existing apartment building.

F. In accordance with Government Code 66477(a)(8), this section has a limited application to nonresidential subdivisions of less than five parcels and to reversion acreage.

G. In accordance with Government Code 66477(a)(6), the City shall develop a schedule specifying how, when and where the land dedicated and the fees collected pursuant to this section will be used to serve the residents of the subdivision. (Ord. 2000-09; Ord. 2011-06)
§ 23.98.090. Fee Adjustment.

A developer of any project subject to the fee described in this chapter may apply to the Director of Parks and Recreation for a reduction or adjustment of the fee based upon the absence of any reasonable relationship or nexus between the open space and developed parkland needed to serve the new development and the amount of the fee charged. The application shall state in detail the factual basis for the claim of waiver or reduction. The application shall be made in writing to the Director of Parks and Recreation at the time of the filing of the request for a final or parcel map, or for a building permit. The Director of Parks and Recreation shall consider the fee adjustment application within 30 days of the filing of the application. If a reduction or waiver is granted, any change in use within the project resulting in an increase in density shall subject the development to payment of the full fee.
(Ord. 2003-04; Ord. 2017-07)
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CHAPTER 23.100

GENERAL PROVISIONS FOR DEVELOPMENT IMPACT FEES
§ 23.100.010 Authority.

This Chapter is enacted pursuant to the authority granted by the Mitigation Fee Act, California Government Code section 66000 et seq., California Assembly Bill (AB) 602 (Gov. Code §§ 65940.1, 66016.5, 66019), and the City’s general police power under Article XI of the California Constitution. The City Council may adopt implementing resolutions to establish fee amounts, categories, and administrative procedures consistent with this Chapter.
§ 23.100.020 Purpose and Application.

This Chapter governs development impact fees (DIFs) imposed as conditions of development approval to defray the cost of public facilities, improvements, vehicles, and equipment reasonably related to the impacts of new development. Fees adopted under this Chapter are separate from regulatory and processing fees, development agreement obligations (Gov. Code § 65864 et seq.), assessment district levies, or taxes, and shall be used exclusively for growth-related capital needs. The City may include the reasonable costs of administering the fee program as a component of the fees or as a separate Program Administration Fee.

Residential fees shall be calculated on livable square footage. Non-residential fees shall be calculated per 1,000 square feet, except where a different unit of measure is specified by the adopting resolution.

Pursuant to Government Code Section 65913.2, the City has considered the effects of the fee with respect to the City’s housing needs as established in the Housing Element of the General Plan.
§ 23.100.030 Methodologies; Level of Service.

Fees shall be supported by an impact fee nexus study adopted by the City Council and updated at least every eight (8) years in accordance with AB 602. The City may use the existing inventory method, planned facilities method, and system plan method, as appropriate to each facility type. Where applicable, the nexus study shall identify existing and proposed levels of service and demonstrate that fees do not fund existing deficiencies, but only the costs attributable to accommodating growth and maintaining adopted service standards.
§ 23.100.040 Indexing and Adjustments.

EXHIBIT B
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Unless otherwise provided by Council resolution, fee amounts shall be adjusted annually on July 1 using the Engineering News-Record Construction Cost Index (ENR CCI) for the Los Angeles region, or a comparable index if the ENR CCI is unavailable. The City may further adjust fees to reflect revised facility requirements, alternative funding sources, demographic changes, or land use plan amendments. § 23.100.050 Credits and Reimbursements.

The City Manager or designee may grant credits or reimbursements when a developer dedicates land or constructs eligible facilities identified in the nexus study/CIP that exceed the developer’s project-specific obligations. Credits or reimbursements shall not exceed the lower of (a) the cost listed in the nexus study (as indexed) or (b) the documented actual cost. Credits and reimbursements may be secured by agreement and applied against fees otherwise due for the same fee category. § 23.100.060 Adjustments, Waivers, and Exemptions.

A developer may apply in writing for a fee adjustment, waiver, or finding of exemption prior to fee payment, demonstrating the absence of a reasonable relationship between the project impact and (1) the fee amount or (2) the facilities to be financed. The City Manager or designee shall hold an informal hearing within sixty (60) days of a complete application and issue a written determination.

The following development is exempt from the regulations of this chapter:

A. Statutory exemptions (e.g., accessory dwelling units < 750 square feet per state law) shall apply.

B. Construction for public or governmental purposes.

C. Replacement/remodels of existing residential structures (without adding new units or additional square footage).

The City may adopt additional exemptions by resolution. § 23.100.070 Appeals.

Decisions of the City Manager or designee regarding credits, reimbursements, adjustments, waivers, exemptions, refunds, or fee administration may be appealed to a designated hearing officer. Appeals must be filed within ten (10) calendar days of the decision, state factual and legal grounds, and be accompanied by a deposit toward the cost of the appeal as established by Council resolution. The hearing officer’s decision shall be final, subject to judicial review under Code of Civil Procedure § 1094.5. § 23.100.080 Refunds.

If a building permit or use permit is canceled or voided and the fees paid have not been committed, the City Manager or designee may, upon written request and provided that 2026-08-26 Item #12C Page 21 of 41
project work has not progressed to permit commencement of the fee-related use, order return of the fee and interest earned, less administrative costs. If a fee remains unspent or uncommitted for five (5) years or more after collection, refunds shall be administered in accordance with Government Code section 66001(d).
§ 23.100.090 Deferred Payment for Designated Residential Projects.

For “Designated Residential Development Projects” under California Senate Bill (SB) 937, codified in California Government Code Section 66007 (effective Jan. 1, 2025), City DIFs otherwise due at building permit issuance shall be deferred until issuance of a Certificate of Occupancy or Temporary Certificate of Occupancy, without interest, and assessed at the rate in effect at building permit issuance, consistent with state law. Utility service fees may still be collected upon application for utility services. If construction does not commence within five (5) years of permit issuance, the City may require payment.
§ 23.100.100 Timing of Payment.

Unless deferred by state law or Council resolution, fees shall be collected at building permit issuance. For multi-building projects, fees are due upon issuance of permits for each building.
§ 23.100.110 Program Administration.

The City shall maintain a Capital Improvement Program (CIP) identifying eligible projects and shall prepare annual and five-year reports in accordance with Government Code sections 66006 and 66001. A separate Program Administration Fee may be imposed as set forth in Chapter 23.105 to fund lawful administrative costs, including revenue collection and accounting, mandated public reporting, nexus study updates, and credit/reimbursement processing.
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CHAPTER 23.101

PARK DEVELOPMENT IMPACT FEE
§ 23.101.010 Intent and Purpose.

The City anticipates residential growth and finds that new residents will require additional park development to maintain the City’s existing service standard. The purpose of the Park Development Impact Fee is to fund park improvements (e.g., fields, courts, play equipment, shade structures, and related amenities) necessary to serve new development and maintain the existing level of service of approximately 4.86 acres per 1,000 residents.
§ 23.101.020 Definitions.

For this Chapter: “Park Facilities” means neighborhood and community park improvements and amenities; “Permit” means a building or use permit authorizing a new residential unit.
§ 23.101.030 Fee Requirement.

A. Fee Amount. The City Council shall establish fee amounts by resolution. Fees shall be based on the Existing Inventory Method, calculated on a cost-per-capita basis and converted to a fee per square foot for residential units to comply with AB 602.

B. Applicability. The fee applies to residential development only.

C. Basis. The fee shall fund park improvements attributable to new development and shall not include costs to correct existing deficiencies. § 23.101.040 Exemptions.

Non-residential development shall be exempt. Additional exemptions may be adopted by resolution consistent with state law. Statutory exemptions apply. § 23.101.050 Time of Payment.

At building permit issuance, subject to SB 937 deferrals where applicable. § 23.101.060 Use of Fee.

Fees shall be deposited into a Park Development Impact Fee Fund and used for acquisition, construction, and improvement of park facilities; reasonable program administration; or reimbursement of City advances from other sources. § 23.101.070 Annual Review.
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Annual Council review; may amend by resolution.
§ 23.101.080 General Provisions Apply.

Chapter 23.100 applies to this fee.
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CHAPTER 23.102

PARKLAND ACQUISITION IMPACT FEE
§ 23.102.010 Intent and Purpose.

Other terms are as defined in Chapter 23.101.
§ 23.102.030 Fee Requirement.

A. Fee Amount. Established by Council resolution using the Planned Facilities Method with costs per acre reflective of Encinitas land values.

B. Applicability. Residential development only.

C. Basis. The fee shall fund parkland attributable to new development and not existing deficiencies.
§ 23.102.040 Exemptions.

Non-residential development is exempt. Statutory exemptions apply. § 23.102.050 Time of Payment.

At building permit issuance, subject to SB 937 deferrals where applicable. § 23.102.060 Use of Fee.

Deposit into a Parkland Acquisition Impact Fee Fund and use solely to acquire new parkland, or to expand existing park sites, to maintain the City’ s standard for park acreage. Eligible uses include the purchase of land for new neighborhood and community parks, acquisition of easements for public recreation, and related land acquisition costs such as appraisals, environmental assessments, and legal or closing costs, or to reimburse City advances.
§ 23.102.070 Annual Review.
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Annual Council review; fee may be amended by resolution. § 23.102.080 General Provisions Apply.

Chapter 23.100 applies to this fee.
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CHAPTER 23.103

COMMUNITY FACILITIES IMPACT FEE
§ 23.102.010 Intent and Purpose.

New residential and non-residential development increases demand for community facilities (e.g., City administration buildings, community centers, libraries, lifeguard and public works facilities). The purpose of the Community Facilities Fee is to ensure that new residential and non-residential development contributes its fair share toward maintaining the existing level of service for community facilities, such as libraries, community centers, and civic buildings, as the population and employment bases grow.

The Fee provides a mechanism for funding additional facilities or capacity improvements necessary to serve new development without reducing the level of service enjoyed by existing residents and businesses.
§ 23.102.020 Definitions.
“Community Facilities” include buildings and capital equipment supporting civic services. “Worker” is weighted at 0.37 times a resident for service demand calculations. Other terms as defined in Chapter 23.100.
§ 23.102.030 Fee Requirement.

A. Fee Amount. Established by resolution using the Existing Inventory Method, computed per resident and per worker, and applied as per-square-foot (residential) and per-1,000-square-feet (non-residential) fees.

B. Applicability. Residential and non-residential development as specified by resolution.
§ 23.102.040 Exemptions.

Exemptions may be adopted by resolution consistent with law. Statutory exemptions apply.
§ 23.102.050 Time of Payment.

At building permit issuance, subject to SB 937 deferrals where applicable. § 23.102.060 Use of Fee.

Deposit into a Community Facilities Impact Fee Fund for acquisition, construction, expansion, and improvement of community facilities and eligible capital equipment; reasonable program administration; or reimbursement of City advances. 2026-08-26 Item #12C Page 27 of 41
§ 23.102.070 Annual Review.

Annual Council review; may amend by resolution.
§ 23.102.080 General Provisions Apply.

Chapter 23.100 applies to this fee.
2026-08-26 Item #12C Page 28 of 41
CHAPTER 23.104

OPEN SPACE ACQUISITION IMPACT FEE
§ 23.104.010 Intent and Purpose.

The purpose of the Open Space Acquisition Fee is to ensure that new residential development contributes its fair share toward the cost of preserving, maintaining, and enhancing the City’s open space resources. The fee supports a balance between urban development and natural resource conservation, consistent with the City’s General Plan policies promoting habitat protection, scenic preservation, and the public enjoyment of open space areas and goals and objectives of the Resource Management Element of the City of Encinitas General Plan.
§ 23.104.020 Definitions.
“Open Space” includes lands dedicated to conservation, habitat, passive recreation, or scenic resources.
§ 23.104.030 Fee Requirement.

Established by Council resolution using the Existing Inventory Method on a per-capita basis and applied to residential development as a per-square-foot fee. § 23.104.040 Exemptions.

Non-residential development is exempt. Statutory exemptions apply. § 23.104.050 Time of Payment.

At building permit issuance, subject to SB 937 deferrals where applicable. § 23.104.060 Use of Fee.

Deposit into an Open Space Acquisition Impact Fee Fund for the acquisition, preservation, and maintenance of open space lands that provide environmental, recreational, and aesthetic benefits to the community. Eligible uses include acquisition of open space; restoration and habitat management; maintenance of existing open space areas; administrative costs related to open space management and monitoring; or reimbursement of City advances.
§ 23.104.070 Annual Review.

Annual Council review; may amend by resolution.
§ 23.104.080 General Provisions Apply.
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Chapter 23.100 applies to this fee.
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CHAPTER 23.105

RECREATIONAL TRAILS IMPACT FEE
§ 23.103.010 Intent and Purpose.

New residential development increases demand on the City’s trail system. The purpose of the Recreational Trails Impact Fee is to provide fair and proportional means for new residential development to contribute to the cost of maintaining and enhancing the City’s recreational trail system. The fee will help ensure that as the City’ s population grows, trail facilities remain adequate to serve both existing and future residents, maintaining the existing level of service and supporting the City’s goals for outdoor recreation and mobility.
§ 23.103.020 Definitions.
“Recreational Trails” include natural and soft surface paths, multi-use paths, sidewalks, trailheads, and related safety and accessibility features. § 23.103.030 Fee Requirement.

Established by Council resolution using the Existing Inventory Method on a per-capita basis and applied to residential development as a per-square-foot fee. § 23.103.040 Exemptions.

Non-residential development is exempt. Statutory exemptions apply. § 23.103.050 Time of Payment.

At building permit issuance, subject to SB 937 deferrals where applicable. § 23.103.060 Use of Fee.

Deposit into a Recreational Trails Impact Fee Fund for acquisition, design, construction, and improvement of recreational trails and related amenities, such as trailheads, signage, and safety features. Eligible projects are those that expand or improve the existing trail network consistent with the City’s trail system objectives and recommendations and as identified in the Trails Master Plan (2003), Parks, Beaches, Trails and Open Space Master Plan (2016) and Active Transportation Plan (2018). § 23.103.070 Annual Review.

Annual Council review; may amend by resolution.
§ 23.103.080 General Provisions Apply.
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Chapter 23.100 applies to this fee.
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CHAPTER 23.106

FIRE MITIGATION IMPACT FEE
§ 23.106.010 Intent and Purpose.

The City Council has determined that a development impact fee is needed in order to finance these public improvements and to pay for new development’s fair share of the construction of these improvements. The Fire Mitigation Impact Fee maintains the existing valuation-based level of service per resident and worker and funds facility expansions, new stations, vehicles, apparatus, and capital equipment needed to serve growth.
§ 23.106.020 Definitions.
“Fire Facilities” include fire stations, training facilities, apparatus, vehicles, and capital equipment. “Worker” is weighted at 0.37 of a resident.
§ 23.106.030 Fee Requirement.

Established by Council resolution using the Existing Inventory Method on a per-capita basis and applied to residential (per-square-foot) and non-residential (per-1,000-squarefeet) development. § 23.106.040 Exemptions.

Exemptions may be adopted by resolution consistent with law. § 23.106.050 Time of Payment.

At building permit issuance, subject to SB 937 deferrals where applicable. § 23.106.060 Use of Fee.

Deposit into a Fire Mitigation Impact Fee Fund and use exclusively for the acquisition, expansion, or improvement of fire protection and emergency response facilities, vehicles, and capital equipment within the City of Encinitas. Eligible uses include, but are not limited to, fire station improvements, apparatus and vehicle replacements needed to maintain service levels, communication systems, and other capital items that expand or sustain the City’ s fire protection capacity.
§ 23.106.070 Annual Review.
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Annual Council review; may amend by resolution.
§ 23.106.080 General Provisions Apply.

Chapter 23.100 applies to this fee.
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CHAPTER 23.107

TRAFFIC MITIGATION IMPACT FEE
§ 23.104.010 Intent and Purpose.

In order to implement the goals and objectives of the Circulation Element of the City of Encinitas' General Plan and to mitigate the impacts caused by new development in the City, certain traffic facilities must be constructed. Significant growth will increase trips by all modes, necessitating Citywide transportation improvements. The purpose of the Traffic Mitigation Fee is to fund the construction and improvement of traffic infrastructure necessary to accommodate vehicle, bicycle, and pedestrian travel demands generated by new development within the City. The fee ensures that new development contributes its fair share toward mitigating the incremental impacts it creates. § 23.104.020 Definitions.
“Improvements” include intersection upgrades, roadway reconfiguration, traffic signals, pedestrian crossings, bicycle facilities, and transit-supporting infrastructure identified in the City’s CIP and nexus study.
§ 23.104.030 Fee Requirement.

A. Fee Amount. Established by Council resolution using the Planned Facilities Method; calculated per PM peak hour trip and applied as per-square-foot (residential) or per-1,000-square-feet (non-residential) fees.

B. Land Use Categories. Residential (single-family, multi-family) and non-residential (office, retail, industrial, hotel and other categories as specified by resolution).

C. Reduced Trip Rates. The Council may adopt trip reduction factors for residential projects proximate to transit and diverse amenities consistent with the nexus study.
§ 23.104.040 Exemptions and Credits.

Prior payment of substantially similar fees for the same property and use shall be exempt. Pass-by trip reductions for retail may be applied by resolution. Credits for developer-constructed eligible improvements shall be administered under § 23.100.050. § 23.104.050 Time of Payment.

At building permit issuance, subject to SB 937 deferrals where applicable. § 23.104.060 Use of Fee.
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Deposit into a Transportation Facilities Impact Fee Fund and use solely to design, acquire right-of-way, construct, and improve eligible multimodal transportation projects or reimburse City advances.
§ 23.104.070 Annual Review and Index Adjustment.

Annual Council review and index adjustments per Chapter 23.100. § 23.104.080 Cross-Reference to RTCIP.

Projects subject to the Regional Transportation Congestion Improvement Program (RTCIP) shall pay the RTCIP fee pursuant to Chapter 23.110 of this Chapter and SANDAG Commission Ordinance 04-01. Payment of the RTCIP fee is supplemental to and independent from the City’s Transportation Facilities Impact Fee; paying one does not substitute for the other.
§ 23.104.090 Authority for Separate Mitigation Measures.

This fee does not replace site-specific mitigation conditions imposed through discretionary approvals where warranted by project-specific impacts. § 23.104.100 General Provisions Apply.

Chapter 23.100 applies to this fee.
2026-08-26 Item #12C Page 36 of 41
CHAPTER 23.108

FLOOD CONTROL MANAGEMENT IMPACT FEE (DRAINAGE)
§ 23.108.010 Intent and Purpose.

New development increases impervious surface area and stormwater runoff, requiring systemwide drainage improvements. The purpose of the Flood Control Management Fee is to ensure that new development contributes its fair share toward the cost of planned drainage and flood control improvements necessary to accommodate increased stormwater runoff and protect public and private property. § 23.108.020 Definitions.
“Flood Control Facilities” include storm drains, culverts, channels, detention basins, and related system infrastructure identified in the City’s CIP and nexus study. “Impervious Acre” means the area contributing runoff as determined by adopted impervious factors. § 23.108.030 Fee Requirement.

A. Fee Amount. Established by resolution using the Planned Facilities Method, calculated per impervious acre and converted to per-square-foot (residential) and per-1,000-square-feet (non-residential) rates using density/Flood Area Ratio (FAR) and impervious factor assumptions.

B. Basis. The fee shall fund improvements attributable to new development and not existing deficiencies.
§ 23.108.040 Exemptions and Credits.

Exemptions and credits shall be as provided by resolution and § 23.100.050. § 23.108.050 Time of Payment.

At building permit issuance, subject to SB 937 deferrals where applicable. § 23.108.060 Use of Fee.

Deposit into a Flood Control Management Impact Fee Fund for planning, design, land or easement acquisition, construction, and improvement of eligible drainage and flood control facilities, or reimbursement of City advances.
§ 23.108.070 Annual Review.

Annual Council review; may amend by resolution.
§ 23.108.080 General Provisions Apply.
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Chapter 23.100 applies to this fee.
2026-08-26 Item #12C Page 38 of 41
CHAPTER 23.109

PROGRAM ADMINISTRATION FEE
§ 23.105.010 Intent and Purpose.

The City, with assistance from consultants, oversees the implementation and administration of the existing City of Encinitas Impact Fee Program, consistent with the requirements of the Mitigation Fee Act. California Assembly Bill (AB) 602, which came into effect on January 1, 2022, adds additional nexus study requirements. Furthermore, AB 1483, codified in California Government Code Section 65940.1, which became effective January 1, 2020, requires that public agencies make certain information available on their website, increasing the administrative responsibilities of the City. The purpose of the Program Administration Fee is to provide the funding necessary to administrate and update the City of Encinitas Development Impact Fees. § 23.105.020 Fee Requirement.

The Program Administration Fee shall be five percent (5%) of the aggregate City impact fees due on a project, unless a different percentage is established by Council resolution. § 23.105.030 Applicability and Time of Payment.

Collected concurrently with applicable impact fees at building permit issuance or at the time mandated by state law for deferred payments.
§ 23.105.040 Use of Fee.

Deposit into a separate Program Administration fund and use to fund the management and administration of the City of Encinitas Impact Fees. This includes consultant and City staff time related to services such as posting of nexus studies and fee schedules on the City’ s website, annual fee adjustments, annual fee reporting, additional fee reporting every five years, application and tracking of fee credits/reimbursements, periodic nexus study updates and the preparation of Master Plans to support the nexus study updates, staff and consultant time related to fee preparation, collection, tracking and administration.
§ 23.105.050 Annual Review.

Annual Council review; may amend by resolution.
§ 23.105.060 General Provisions Apply.

Chapter 23.100 applies to this fee.
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CHAPTER 23.110

REGIONAL TRANSPORTATION CONGESTION IMPROVEMENT PROGRAM
(RTCIP) FEE
§ 23.110.010 Intent and Purpose..

To implement the requirements of the TransNet Extension Ordinance and Expenditure Plan (SANDAG Commission Ordinance 04-01) and the Regional Transportation Congestion Improvement Program (RTCIP), the City shall collect an RTCIP fee from private development for each newly constructed residential housing unit, with exceptions provided by law. The RTCIP ensures future development contributes its proportional share to fund improvements on the Regional Arterial System and related regional transportation facilities as defined in the most recent SANDAG Regional Transportation Plan.
§ 23.110.020 Fee Requirement.

A. Applicability. The RTCIP fee shall be collected from residential development as required by SANDAG Commission Ordinance 04-01 and subsequent SANDAG Board actions; exemptions (including low-income residential units and certain accessory dwelling units) shall be administered consistent with SANDAG policies and applicable state law.

B. Administration. The City Engineer or designee shall determine and apply the RTCIP fee and ensure compliance with SANDAG annual program update deadlines to maintain eligibility for TransNet local street and road funding. § 23.110.030 Exemptions and Credits.

Exemptions to the RTCIP fee shall be as provided by SANDAG Commission Ordinance 04-01 and any implementing SANDAG Board policies, including but not limited to exemptions for low- and moderate-income housing when applicable and for qualifying accessory dwelling units pursuant to state law.
§ 23.110.040 Time of Payment.

At building permit issuance, subject to SB 937 deferrals where applicable. § 23.110.050 Use of Fee.

Fees collected pursuant to this Chapter shall be deposited into the Regional Transportation Congestion Improvement Program Fund and used in accordance with SANDAG Commission Ordinance 04-01 for eligible Regional Arterial System improvements and related regional transportation facility improvements. The City shall maintain separate accounting records for RTCIP revenues and expenditures. 2026-08-26 Item #12C Page 40 of 41
§ 23.110.060 Fee Requirements.

The RTCIP fee amount shall be the minimum fee established by the SANDAG Board of Directors and adjusted annually effective July 1. In no event shall the annual adjustment be less than two percent (2%) or more than the percentage increase set forth in the Engineering News-Record Construction Cost Index (ENR CCI) or similar index as determined by SANDAG. The City shall adopt any necessary resolutions or fee schedules to implement SANDAG’s annual RTCIP fee adjustment and shall ensure collection of the current RTCIP fee on and after its effective date. § 23.110.070 Coordination with City Traffic Mitigation Fee.

The RTCIP fee is supplemental to the City’s Transportation Facilities Impact Fee (Traffic Mitigation) established by Chapter 23.107 of this Chapter. Payment of the RTCIP fee does not substitute for or reduce City Traffic Mitigation fees. Credits available under §

23.100.050 shall not be applied to the RTCIP fee unless expressly authorized by SANDAG Commission Ordinance 04-01 and SANDAG policies.
§ 23.110.080 Reporting and Program Compliance.

The City shall submit the annual RTCIP program update to the SANDAG Independent Taxpayer Oversight Committee (ITOC) by the deadline established by SANDAG, and shall comply with all administrative requirements to remain eligible for TransNet funding.

RTCIP accounting, reporting, audits, and notices shall be performed consistent with Government Code §§ 66000 et seq., AB 516, and applicable SANDAG procedures. § 23.110.090 General Provisions Apply.

Chapter 23.100 applies to this fee. The City may adopt implementing resolutions to administer the RTCIP fee consistent with this Chapter and SANDAG requirements. 2026-08-26 Item #12C Page 41 of 41

Encinitas City CouncilAugust 26, 2026

Encinitas City Council
August 26, 2026