RESOLUTION NO. 2024-9388
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS ADOPTING A POLICY ON THE IMPLEMENTATION OF DEVELOPMENT IMPACT FEES (PUBLIC FACILITIES FEES) AND THE INCLUSIONARY HOUSING IN-LIEU FEE FOR ACTIVE PROJECTS WHEREAS, the City of San Marcos, in compliance with the Mitigation Fee Act, has adopted a Development Impact Fee Nexus Study and adopted a Development Impact Fee Schedule on November 26, 2024; and WHEREAS, the City has adopted an Inclusionary Housing In-Lieu Fee on November 26, 2024; and WHEREAS, the City is committed to an approach that balances continuing investment in development while maintaining the necessary public infrastructure; and WHEREAS, the City wishes to establish a reasonable transition framework to allow ongoing projects sufficient time to adapt to the fee updates; and WHEREAS, the City expects all development projects to proceed through the approval and permitting process in a diligent and timely manner; and, WHEREAS, the City desires to adopt a policy addressing the implementation of Development Impact Fees, also referred to as Public Facilities Fees, and the Inclusionary Housing In-Lieu Fee on projects that have already submitted applications to the City and are in the review process prior to the Effective Date for the new fees.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Marcos does hereby direct as follows:
SECTION 1.
The City Council establishes the below Policy on the Implementation of Public Facilities Fees and Inclusionary Housing In-Lieu Fee.
The City Council hereby delegates and grants to the City Manager such authority as necessary to administer and implement the policy, including the authority to interpret the provisions of this policy in a manner that aligns with the City’s interests and goals.
SECTION 2. Definitions.
Active Project. A Project meeting both of the following requirements:
A complete application made prior to the Effective Date of the new or increased fees; and A maximum of six months elapsing between subsequent complete submittal dates.
Effective Date. The date when new fees shall be in force as set by City Council or law.
Grace Period. The specified period of time granted to an Active Project to be subject to the fees and/or fee amounts in place prior to the Effective Date, and after the expiration of which Grace Period the newly adopted fees shall apply.
Inactive Project. A Project not meeting all requirements to qualify as an Active Project, such as allowing more than six months to elapse between successive submittals or failing to timely submit an application or submittal that is deemed complete and responsive by the City.
Project. Any activity that would trigger the obligation to pay Public Facilities Fees (PFF) and/or Inclusionary Housing In-Lieu Fees. This excludes activity for which State law prohibits the imposition of PFFs and/or the Inclusionary Housing In-Lieu Fee.
SECTION 3. Implementation of Newly Adopted and/or increased Fees. All Projects are subject to the obligation to pay newly-adopted fees pursuant to Resolutions 2024-9385 and 2024-9387 for Public Facilities Fees and Inclusionary Housing In-Lieu Fees, respectively, unless the Project qualifies for an exemption by meeting all of the following criteria:
The Project is an Active Project; and
The Project remains, without lapse, an Active Project for the duration of any Grace Period; and The Project building permits are issued prior to the termination of the allowable Grace Period.
A project meeting all of the criteria listed above shall be granted a Grace Period of two years during which the Project will remain subject to the fees in place prior to the Effective Date. Such Grace Period shall apply to all fees for the project; it cannot be selectively applied to a single fee category. The Grace Period may be administratively extended up to a maximum possible period of three years from the Effective Date in accordance with the criteria below.
SECTION 4. Grace Period. The Grace Period shall commence upon the Effective Date. Subject to the following described opportunities for extension, once expired, the Grace Period cannot be reinstated. The Grace Period shall terminate upon the following, whichever comes first:
The Project losing its Active Project status and becoming instead an Inactive Project for any period of time.
Two years after the Effective Date, unless administratively extended by the City Manager.
Upon the conclusion of any administrative extension as may be granted by the City Manager.
The City Manager may grant up to two, 6-month administrative extensions to the Grace Period subject to meeting all of the following 3 criteria:
The Active Project has demonstrated to the City Manager’s satisfaction that it cannot:
Obtain 3rd party regulatory permits within the Grace Period after timely application and diligent ongoing activity in pursuit of those permits (within 6 months of any approval or complete submittal to the City); or, Reasonably achieve timely issuance of building permits due to unforeseen circumstances that are entirely outside the control of the applicant and/or its officers, directors, stakeholders, employees, agents, representatives, successors and/or assigns such as acts of God that have directly hindered actions necessary for and/or associated with development and are not risks normally assumed by a Project. For purposes of this policy, failure to timely order equipment and/or supplies, internal disputes, project financing issues, and labor disputes do not constitute unforeseen circumstances.
The administrative extension was requested in writing no more than six months prior to and before the expiration of the Grace Period.
All other requirements of City Active Project status have been continuously maintained.
Upon the expiration of the Grace Period, the Project shall be subject to the obligation to pay the newly adopted and/or increased fees pursuant to Resolutions 2024-9385 and 2024-9387 for Public Facilities Fees and Inclusionary Housing In-Lieu Fees, respectively.
SECTION 5. Interpretation. Where vagueness exists within this policy, the City Manager shall have the authority to interpret and apply this policy. Generally, interpretation shall be in favor of the City’s interests.
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:
______________________________
Rebecca D. Jones, Mayor
City of San Marcos
ATTEST:
_____________________________
Phillip Scollick, City Clerk
City of San Marcos