1.E SECOND READING AND ADOPTION ORDS O-2026-05 & O-2026-08 PMC TITLE 5 FEE AMENDMENTS & IMPACT FEES

3;kc,25,Eggolk
Agenda Item No: 1.e

PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: May 5, 2026
Submitted by: Joe Lambert
From: Development Services
Subject:

SECOND READING AND ADOPTION OF ORDINANCE NO. 0-2026-05, AN ORDINANCE

OF THE CITY COUNCIL OF THE CITY OF PLACENTIA, CALIFORNIA, AMENDING TITLE 5 OF THE PLACENTIA MUNICIPAL CODE (SCHEDULE OF FEES) TO ADD SECTION

5.02.105 "GENERAL GOVERNMENT FACILITIES FEES" ESTABLISHING A CITY

FACILITIES IMPACT FEES AS PART OF THE CITY'S DEVELOPMENT IMPACT FEE

PROGRAM, AND ADOPTING NECESSARY FINDINGS FOR THE ESTABLISHMENT OF THE CITY FACILITIES IMPACT FEES; AND, SECOND READING AND ADOPTION OF ORDINANCE NO. 0-2026-08, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLACENTIA, CALIFORNIA, AMENDING TITLE 5 OF THE PLACENTIA MUNICIPAL CODE (SCHEDULE OF FEES) BY AMENDING CHAPTERS 5.01 (FEES SET BY RESOLUTION),

5.03 (TRANSIT ORIENTED DEVELOPMENT (TOD) DEVELOPMENT IMPACT FEES), 5.12 (FIRE DEPARTMENT) AND 5.24 (PUBLIC WORKS DEPARTMENT) AS PART OF THE

CITY'S DEVELOPMENT IMPACT FEE PROGRAM
Financial Impact:

The adoption of revised Development Impact Fees and Residential Affordable Housing Impact Fees will not have an immediate impact on revenues to the City as they are effective 60 days subsequent to adoption. These Development Impact Fees are established for cost recovery or statutory purposes only.

Summary:

The City's Development Impact Fees program ("DIF") was first established in the early 1970's when much of the City was undeveloped. The City's costs for infrastructure have significantly increased over that period of time; however, the City's DIFs were not updated regularly to adequately cover said infrastructure costs, thus requiring the General Fund to subsidize infrastructure improvements or, in some cases, the improvements that are not conducted by a developer. First Reading of Ordinance Nos. 0-2026-05 and 0-2026-08, occurred on April 21, 2026.

Ordinance No. 0-2026-05 will create a new General Government Facilities Fee pursuant to the Development Impact Fee Justification Study (Nexus Study) considered by City Council on April 21, 2026. This fee would be in place concurrent with the effective dates of Ordinance No. 0-2026-05 and Resolution No. R-2026-22.
1 Ordinance No. 0-2026-08 will amend Title 5 (Schedule of Fees) of the City of Placentia Municipal Code to delete selections that no longer apply, revise the Fire Department to remove references to Orange County Fire, and provide clarification as to fees applicable to Transit Oriented Development.

Recommended Action:

It is recommended that the City Council:

1. Find that the recommended actions are exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3) of the Public Resources Code, and the City of Placentia Local Guidelines for implementing CEQA; and

2. Waive full reading, by title only, and adopt Ordinance No. 0-2026-05, an Ordinance of the City Council of the City of Placentia, California, amending Title 5 of the Placentia Municipal Code (schedule of fees) to add Section 5.02.105 "General Government Facilities Fees" establishing a City Facilities Impact Fees as part of the City's Development Impact Fee Program, and adopting necessary findings for the Establishment of the City Facilities Impact Fees; and,

3. Waive full reading, by title only, and adopt Ordinance No. 0-2026-08, an Ordinance of the City Council of the City of Placentia, California, amending Title 5 of the Placentia Municipal Code (Schedule Of Fees) by amending Chapters 5.01 (Fees Set by Resolution), 5.03 (Transit Oriented Development (TOD) Development Impact Fees), 5.12 (Fire Department) and 5.24 (Public Works Department) as part of the City's Development Impact Fee Program.

Strategic Plan Statement:

This item is consistent with Strategic Goal No. 1 (Fiscal Sustainability), Goal No. 2 (Public Safety) and Goal No. 3 (Infrastructure, Facilities & Public Spaces) as this item will update Development Impact Fees to facilitate cost recovery by requiring new development to pay a fair share of costs for City facilities, including Public Safety centers, parks and recreation centers. These funds can also be utilized for capital improvement projects including street paving and repair, sewer system and storm drain system upgrades. By doing so, the fiscal sustainability of the City will benefit in that the burden on the City's reserves will be lessened.

Discussion:

BACKGROUND:

DIFs are a commonly used method of collecting a proportional share of funds from new development for infrastructure improvements and/or other public facilities capital improvements that would be needed as a result of the new development. Pursuant to the Mitigation Fee Act ("Act"), California Government Code Section 66000, et seq. (also known as AB 1600), adoption of impact fees requires documentation of the "nexus" between the fees being charged, the impacts of new development, the benefit of the facilities needed to mitigate such impacts, and the proportional cost allocation among different fee categories. Impact fee programs must be adopted by the City Council via an ordinance, however, once the program is adopted, the fees can be automatically updated via City Council resolution. Impact fees are imposed either jurisdiction -wide or in a relatively large area anticipating significant amounts of new development, such as a specific plan area or community plan area. In Placentia, we have both citywide (includes affordable housing) impact fees and TOD District specific impact fees.

In 2017, the City prepared development impact fee nexus studies for the purpose of updating DIFs pursuant to California Government Code Section 66000. Three different nexus studies were completed in 2017 and were utilized respectively to adopt the current citywide DIFs, the 2 housing impact fee, and the TOD DIFs. The DIF program that is currently in place was adopted by City Council in October 2017.

In April 2023, two specific fees were updated commensurate with actual costs. The fees that were specifically updated beyond Construction Cost Index (CCI) are the Public Safety Impact Fee (now known as Fire, Police, Animal Shelter fees) and TOD Sewer Impact Fee. Those specific fees were updated beyond CCI because the City performed the "City of Placentia Development Impact Fee Nexus Study" dated April 2023. The balance of all Development Impact Fees were adjusted by CCI .23% as measured from April 2022 to April 2023. An annual DIF update pursuant to CCI also occurred on April 16, 2024.

One of the City Council directions from the April 16, 2024 annual DIF update was to prepare a new Development Impact Fee Nexus Study Report to update both Citywide Development Impact Fees and TOD Impact Fees. The Studies were utilized to prepare the recommended revised Development Impact Fee schedule for all citywide and TOD Impact fees.

DISCUSSION:

The existing DIFs include the following updated fees:
• Citywide Public Safety Fees: Fire, Police and Animal Shelter • Citywide Park Fee
• Citywide Quimby Fee
• Citywide Sewer Impact Fee
• Citywide Traffic Impact Fee Program (recommended to be renamed Transportation) • Storm Drainage Impact Fee Program
• TOD Traffic Impact Fee (recommended to be omitted)
• TOD Sewer Impact Fee
• TOD Streetscape Infrastructure Impact Fee
• Affordable Housing Impact Fee
Proposed new DIF:
• General Government Facilities Fee
The Development Impact Fee Nexus Studies considered by City Council on April 21, 2026 contemplate a new General Government Facilities fee. Ordinance No. 0-2026-05 will create a new General Government Facilities Fee pursuant to the Development Impact Fee Nexus Studies. This fee would be in place concurrent with the effective dates of Ordinance No. 0- 2026-05 and Resolution R-2026-22. Staff is recommending adoption of Ordinance No. 0- 2026-05.

In addition, Staff recommends adoption of Ordinance No. 0-2026-08. This Ordinance would clean up Title 5 (Schedule of Fees) of the City of Placentia Municipal Code to delete selections that no longer apply, revise the Fire Department to remove references to Orange County Fire, and provide clarification as to fees applicable to Transit Oriented Development.

Financial Summary:

DIFs are a commonly used cost recovery method of collecting a proportional share of funds from new development for infrastructure improvements and/or other public facilities capital improvements that would be needed as a result of the new development. These fees are seen as paying for necessary infrastructure costs as opposed to the General Fund and are therefore seen as cost recovery in nature. The adoption of revised Development Impact Fees 3 and Residential Affordable Housing Impact Fees will not have an immediate impact on revenues to the City until effective 60 days subsequent to adoption.

Attachments

1.Ordinance No. 0-2026-05 - General Government Facilities Fee.docx

2.Ordinance No. 0-2026-08 - Title 5 Amendments.pdf
4 ORDINANCE NO. 0-2026-05

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA, AMENDING TITLE 5 OF THE PLACENTIA MUNICIPAL CODE (SCHEDULE OF FEES) TO ADD SECTION 5.02.105 "GENERAL GOVERNMENT FACILITIES FEES" ESTABLISHING A

CITY FACILITIES IMPACT FEES AS PART OF THE CITY'S

DEVELOPMENT IMPACT FEE PROGRAM, AND ADOPTING

NECESSARY FINDINGS FOR THE ESTABLISHMENT OF THE CITY
FACILITIES IMPACT FEES.

City Attorney Summary
This Ordinance would add Section 5.02.105 to the City of Placentia Municipal Code establishing a City Facilities Fee on new development and conversions to fund the construction, expansion, renovation, and improvement of City buildings and related facilities.

A. RECITALS
WHEREAS, the continuing growth of the City of Placentia ("City"), combined with the expectation of high-quality services by persons who live and work in the City have encouraged a review of the City's existing and future City facilities made necessary by new development; and
WHEREAS, pursuant to Government Code Section 66000 et seq., ("Mitigation Fee Act") the City is empowered to impose fees and other exactions to provide necessary public facilities required to mitigate the negative effects of new development in the City; and
WHEREAS, the type of improvements that public facility fees can pay for include the construction, expansion, renovation, and improvement of government facilities; and WHEREAS, it is fair and equitable for new development to pay its fair share and contribute to the financing and development of government facilities; and WHEREAS, the proposed fees are based upon the information contained in a document and addendum prepared by City staff and DTA Public Finance, Inc. entitled Development Impact Fees Justification Study, City of Placentia, dated April 2026 (t "Nexus Study"); and
WHEREAS, the City desires to add a General Government Facilities Fee to its development impact fee program; and
Ordinance No. 0-2026-05

Page 1 of 4 ends

5 WHEREAS, copies of the Nexus Study are on file in the City Clerk's office and have been made available for public review in accordance with state law, as more fully described below; and
WHEREAS, the City has: 1) made available to the public, at least ten days prior to its public hearing, data indicating the estimated cost required to provide the facilities and infrastructure for which these development fees are levied and the revenue sources anticipated to provide those facilities and infrastructure; 2) mailed notice at least fourteen days prior to this meeting to all interested parties who have requested notice of new or increased development fees; and 3) held a duly noticed, regularly scheduled public hearing on April 21, 2026, at which time oral and written testimony was received regarding the proposed fees; and
WHEREAS, the City Council has reviewed and considered the staff report, the Nexus Study and all oral and written testimony.

B. ORDINANCE

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

Section 1. Section 5.02.105 of the Placentia Municipal Code is added in its entirety as follows:
§ 5.02.105 General Government facilities fees.
(a) Findings. The City Council finds:
(1) Additional or remodeled government facilities are needed to accommodate future growth and maintain an acceptable level of existing government facilities for all areas of the City of Placentia. (2) New development or conversions within the City of Placentia result in increased usage of the existing government facilities, which thereby increases the service requirements and capital equipment requirements of the government facilities. Such increased usage does not ordinarily result from mere subdivision or parcel map divisions of existing properties in the absence of new development or conversions.
(3)
In the absence of the imposition of a government facility impact fee upon new development or conversions, the additional capital expenses necessary to maintain an acceptable level of civic services for the entire City would be unfairly imposed upon the owners and Ordinance No. 0-2026-05

Page 2 of 4 ends

6 residents of the existing buildings and improvements within the City of Placentia.
(4) The government facility fee will be used to fund the construction, expansion, and improvement of government facilities that are needed to serve new development.
(5)
The facts and evidence presented in the City's impact fee study establish that there exists a reasonable relationship between the need for government facilities improvements and the impacts of the types of new developments or conversions for which a
corresponding fee is charged. A reasonable relationship or nexus also exists between the fee's use and the type of new development or conversions for which the fee is charged.
(b) Schedule of General Government Facilities Fees. A general government facilities fee shall be imposed on new development or conversions within the City of Placentia. See Section 5.02.180 "Schedule of development impact fees." (c) There is hereby established and created a fund of the City entitled "General Government facilities impact fund" and all revenues derived from and monies collected under this section, including accrued interest thereon, shall be deposited in such fund.

The City facilities impact fund is established for the sole purpose of providing money for the construction, expansion, renovation, and reconstruction of City facilities.

C. CEQA. This Ordinance does not commit the City to any action that may have a significant effect on the environment. As a result, such action is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) in that it can be seen with certainty that the adoption of this Ordinance will not have a significant impact on the environment.

INTRODUCED at a regular meeting of the City Council of the City of Placentia held on the 21st day of April 2026.

PASSED, APPROVED, AND ADOPTED THIS DAY OF 2026
Chad P. Wanke, Mayor
ATTEST:

Robert S. McKinnell, City Clerk
Ordinance No. 0-2026-05

Page 3 of 4 ends

7 STATE OF CALIFORNIA

COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Placentia held on the 21st day of April 2026, and adopted at a regular meeting of the City Council of the City of Placentia, held on the day of , 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

COUNCILMEMBERS:

ATTEST:

Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:

Christian L. Bettenhausen, City Attorney
Ordinance No. 0-2026-05

Page 4 of 4 ends

8 ORDINANCE NO. 0-2026-08

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA, AMENDING TITLE 5 OF THE PLACENTIA

MUNICIPAL CODE (SCHEDULE OF FEES) BY AMENDING CHAPTERS

5.01 (FEES SET BY RESOLUTION), 5.03 (TRANSIT ORIENTED
DEVELOPMENT (TOD) DEVELOPMENT IMPACT FEES), 5.12 (FIRE
DEPARTMENT) AND 5.24 (PUBLIC WORKS DEPARTMENT) AS PART
OF THE CITY'S DEVELOPMENT IMPACT FEE PROGRAM.

City Attorney Summary
This Ordinance would clean up Title 5 (Schedule of Fees) of the City of Placentia Municipal Code to delete selections that no longer apply, revise the Fire Department to remove references to Orange County Fire, and provide clarification as to fees applicable to Transit Oriented Development.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

Section 1. Section 5.01.010 of the Placentia Municipal Code is hereby amended as follows:

Fees related to the work of the building division, the planning department, the police department, the fire and life safety departmen the public works department, and the community services department shall be established by city City council Council resolution.

Section 2. Section 5.03.020(a) of the Placentia Municipal Code is hereby amended as follows:
§ 5.03.020 Description of fees.
(a) Development impact fees are hereby established on new development or conversions within the TOD area of the city—City of Placentia to pay for public improvements related to civic improvement projects, public safety, sewer projects, traffic mitigation, storm drain and parks as set forth in Chapter 5.02 as well as the fees set forth in this Chapter. In the following section ;Sections, the city City council Council sets forth the specific amount of the development fee for each type of public improvement project.

Section 3. Section 5.03.100 of the Placentia Municipal Code is hereby deleted in its entirety.

Section 4. Chapter 5.12 (Fire Department) of the Placentia Municipal Code is hereby amended in its entirety and replaced with the following:

Ordinance No. 0-2026-08

Page 1 of 4 ends

9 Chapter 5.12 Fire Department
§ 5.12.010. Adoption of fire and life safety department fees. § 5.12.020. Administration.
§ 5.12.030. Definitions.
§ 5.12.040. Alarm business, central station and false alarm service charges. § 5.12.050. Intentional false alarms—Penalties.
§ 5.12.010. Adoption of fire and life safety department fees.

The City Council is authorized to provide by resolution the amount of each fee which shall be charged to those City residents who request, require or incur fire prevention, false alarm and other miscellaneous services provided by the Fire and Life Safety Department.

Said fees may be amended by the City Council from time to time. § 5.12.020. Administration.

The Fire and Life Safety Department of the City is authorized to administer the fire department fee schedule and take collection and enforcement action as may be necessary.
§ 5.12.030. Definitions.

For the purpose of this Chapter the words set out in this Section shall have the following meanings:
"False alarm" means an alarm necessitating response by the fire department where an emergency situation does not exist. This shall include mechanical failure, accidental tripping, misoperation, malfunction, misuse or neglect of an alarm system. "Fire department" means the City of Placentia Fire and Life Safety Department. "Fire department" includes and also means the emergency response agency. "Person" means any individual, occupant, business owner, partnership, corporation, or other entity.
§ 5.12.040. Alarm business, central station and false alarm service charges.

In addition to such other fines or penalties established by law, a false alarm service fee is imposed upon the residential occupants and/or commercial owner and/or operator of the premises wherein a false alarm was made and any central station owners and operators who initiated the fire department's response to such premises. The City Council is authorized to provide by resolution the amount of each fee which shall be charged to those City residents and/or businesses who incur false alarm charges and/or penalties and other miscellaneous charges relating to alarm systems and businesses for services provided by the fire department.

Ordinance No. 0-2026-08

Page 2 of 4 ends

10 § 5.12.050. Intentional false alarms—Penalties.

No person shall intentionally initiate a false alarm except for purposes of testing an alarm system and then only if made in accordance with the rules and regulations of the fire department therefor and after having given the emergency response agency or the fire department prior notice thereof. Any person who violates this section shall be guilty of a misdemeanor and shall be also subject to such other penalties prescribed by law.

Section 5. Sections 5.24.030 (Storm drain acreage fees), 5.24.060 (Sewer acreage fees) and 5.24.090 (Thoroughfare acreage fees) of the Placentia Municipal Code are hereby deleted in its entirety.