RESOLUTION NO. 2024-9386
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS ADOPTING A POLICY ON THE PAYMENT OF DEVELOPMENT IMPACT FEES (PUBLIC FACILITIES FEES) WHEREAS, the City of San Marcos, in compliance with the Mitigation Fee Act, had adopted a Development Impact Fee Nexus Study and adopted a Development Impact Fee Schedule on November 26, 2024; and WHEREAS, the City intends to repeal Ordinance 2003-1203 which adopted the Public Facilities Financing Plan and Established and Imposed Development Impact Fees that were previously in effect but no longer needed with the adoption of the Development Impact Fee Nexus Study and Development Impact Fee Schedule on November 26, 2024; and WHEREAS, the City desires to retain certain procedures pertaining to the payment of Development Impact Fees contained in 2003-1203; and WHEREAS, the City now desires to adopt a resolution approving a new policy on the payment of Development Impact Fees.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Marcos as follows:
SECTION 1. Definitions. For the purposes of this Resolution, the following words or phrases shall be construed as defined in this Section, unless from the context it appears that a different meaning is intended. “Building Permit” means a permit required by and issued pursuant to the Uniform Building Code as adopted by reference by the City. “Development project” or “development” means any activity described in Section 66000(a) of the Government Code; any use to which land is put, building or other alteration of land an construction incident thereto; or any activity, construction or redevelopment which results in or may result in the physical alteration of land requiring an approval or permit under Chapter 17.08 or Titles 19 or 20 of the San Marcos Municipal Code including, but not limited to, Conditional Use Permits and Special Use Permits. “Facilities” means facilities, infrastructure, improvements, equipment, improved and/or unimproved real property and/or interests therein that are used, operated and/or otherwise held for general municipal purposes or on behalf of the citizens of the City. Such facilities, infrastructure, equipment and real property interests shall include, but shall not be limited to, transportation facilities, parks, recreation and trails, fire and EMS facilities, habitat conservation, and storm drainage facilities, and/or advance planning for and appurtenances of the same identified in a Development Impact Fee Nexus study. “Improvement” includes traffic controls, streets and highways, including curbs, gutters and sidewalks, bridges, over-crossings, street interchanges, flood control or storm-drain facilities, water facilities and lighting facilities. “Governmental or Public Facilities” means publicly owned buildings and structures used for the purposes of conducting City, County, State or Federal Government business. Such facilities shall include, but not be limited to, city halls, police and fire stations, offices, equipment yards, sanitation facilities, schools, recreation centers and similar facilities. Private development projects leasing publicly owned land shall not be considered governmental or public facilities. “Occupancy Permit” means an entitlement to occupy or use a building granted pursuant to Chapters 17.04 and 17.08 of the San Marcos Municipal Code.
SECTION 2. Projects Subject to a Development Agreement. Where public facilities and improvements are installed by a developer pursuant to a development agreement, the City Council may waive all or part of the required Public Facilities Fees in consideration of the obligations of the developer set forth in the development agreement.
SECTION 3. Calculation of Required Fees. The Development Services Department shall be responsible for the calculation and collection of the Public Facilities Fees. For projects requiring a building or occupancy permit, the calculation shall be made at the time of permit issuance for the first permit for the project. For projects not requiring a permit, the calculation shall be made at the time of the final legislative approval for the project. Such approvals include, but are not limited to, final zoning approvals, final subdivision approvals and approvals of Conditional Use Permits and Special Use Permits.
SECTION 4. Payment of Fees. The payment of the required Public Facilities Fees shall be made according to the following procedures:
Payment Procedure for Residential Development Projects. Public Facilities Fees shall be paid by the date of final inspection, or the date the certificate of occupancy is issued, whichever occurs first and/or in accordance with Government Code Section 66007. For residential projects containing more than one dwelling unit, all Development Impact Fees should be paid prior to the date the first dwelling unit within the project receives its final inspection or certificate of occupancy, whichever occurs first.
Payment Procedure for Non-Residential Development Projects. Public Facilities Fees from developers of non-residential projects may be paid in either of the following ways at the discretion of the City Manager:
The total of all fees may be paid at the time that the City issues a building permit for the development project; or At least fifty percent (50%) of the total of all Public Facilities Fees may be paid at the time that the City issues a building permit for the development period. The balance of the fees, plus interest on that balance as provided in Subsection (f) of this Section, shall be paid in three (3) equal annual installments. Should an Applicant elect to pay the fees as provided in this subsection (b), the full amount of all Public Facilities Fees shall be secured by execution of an irrevocable letter of credit, or other security instrument acceptable to the City, prior to the issuance of a building permit for the project.
Payment Procedure for Phased Non-Residential Development Projects. If a non-residential development project will be constructed in phase and separate building permits will be issued for each phase, Public Facilities Fees may be made separately for each phase of the project so that the amount paid will be limited to the construction in each phase.
Special Procedure for Alterations or Additions. The Public Facilities Fee for alterations or additions to non-residential structures shall be apportioned to the addition or alteration and imposed only where the addition or alteration changes the potential for use of the structure or results in the ability to accommodate a more intense operation of an existing use, or results in making the structure suitable for re-occupancy or use under the City building code. In the case of a residential structure, the fee for additions or alterations shall be apportioned to the addition or alteration and shall be imposed only where the addition or alteration results in increase in habitable area of fifty percent (50%) or more over the habitable area of the original structure. Notwithstanding the foregoing, where an alteration or addition requiring a permit is being made to a structure on which Public Facilities Fees have not been imposed by the City previously, the entire fee applicable to such a structure shall be paid at the time of issuance of the permit.
Projects not requiring building permits. For development projects not requiring a building permit but requiring a zoning or subdivision permit or approval including, but not limited to, Conditional Use Permits and Special Use Permits, the fee shall be paid at the time of issuance of the final zoning or subdivision approval for the project. By way of example only, the Public Facilities Fees shall be paid upon approval of a Conditional use Permit for an outdoor storage yard.
Interest. Whenever payment of interest is required under this Section, the interest shall be calculated at the rate the City earns on its investments and shall also include interest at a rate equal to the percentage increase in the fees as a result of the most recent annual adjustment of the fees made by the City.
SECTION 5. Construction of Facilities by a Developer or Subdivider. The City may require, as a condition of approval of a subdivision or development project, that the subdivider or developer contract or finance the construction of all or a portion of the facilities or improvements identified in an approved budget or plan for financing through Public Facilities Fees, or to dedicate land for parks or other purposes. If such a requirement is imposed, the developer or subdivider may receive a credit against the Public Facilities Fee in an amount equal to the actual cost of construction of the facilities or improvement as verified by the City Engineer and approved by the City Manager after consideration of the City’s Capital Improvement Program priorities, availability of funds, developer obligations related to conditions of developer’s entitlements, and public health and safety considerations. Unless authorized by the City Manager, the fee credit shall not exceed the amount of Public Facilities Fee paid by the developer for that specific category fee, i.e., circulation streets installed by developer shall receive credit for circulation streets component paid by developer. In this event, the developer may be eligible for reimbursement from other developers in accordance with the City’s reimbursement ordinance.
SECTION 6. Procedure for Fee Waiver or Reduction. Any developer who, because of the nature or type of uses proposed or a development project, contend that application of the Public Facilities Fee is unconstitutional, unrelated to the purpose for which the fee is imposed, or burdens the development, may apply to the City Manager for a waiver or reduction of the fee. The application shall be made in writing and filed with the City Clerk not later than ten (10) days after the notice of the public hearing on the development permit application for the project is given, or if no development permit is required, at the time of filing of the building permit application or application for any other type of development approval. The application shall state in detail the factual basis for the claim of waiver or reduction. The City Manager shall consider the application within thirty (30) days after its filing and shall announce their decision in writing and shall deliver the decision to the developer by certified first class mail. The decision of the City Manager shall be final unless the decision is appealed to the City Council by written appeal filed with the City Clerk within fifteen (15) days from the date it is mailed. If an appeal is filed, it shall be heard and determined by the City Council within thirty (30) days of the date of the first regular City Council meeting following the filing of the appeal. The decision of the City Council shall be final. If a reduction or waiver is granted, any change in the project shall subject the development to payment of the fee. The procedure established by this Section is in addition to any other procedure authorized by law for protesting or challenging the Public Facilities Fee.
PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS at a regular meeting held on the 26th day of November, 2024, by the following roll call vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
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Rebecca D. Jones, Mayor
City of San Marcos
ATTEST:
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Phillip Scollick, City Clerk
City of San Marcos