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Ordinance 2004-17 ORDINANCE NO. 2004-17 AN ORDINANCE ADDING ARTICLE VII, COMMENCING WITH SECTION 21.160, TO CHAPTER 21 OF THE GILROY CITY CODE TO AUTHORIZE THE COMBINATION OF FIVE EXISTING DEVELOPMENT IMP ACT FEES INTO ONE FEE TO FUND PUBLIC FACILITIES WHEREAS, the City of Gilroy ("City") requires public facilities to provide the services of Fire, Police, Library, Parks and Recreation, and for General Public Facilities (the "Public Facilities Components"); and WHEREAS, the City has heretofore imposed and collected development impact fees separately for each of the five separate Public Facilities Components, and has maintained separate funds for each such component; and WHEREAS, after duly noticed public meetings the City has adopted comprehensive master plans for each of the Public Facilities Components that forecast need and costs of all capital improvement projects needed for such component for the planning period from 2003 to 2038; and WHEREAS, the City has had completed a Public Facilities Fee Study (the "Nexus Study") by expert independent consultants MuniFinancial, which Nexus Study satisfies the requirements of Govt. Code Section 66000 et seq. (the "Mitigation Fee Act"); and WHEREAS, the Nexus Study combines the projects listed in each separate master plan into one comprehensive list of land and improvements needed by the City for public facilities during the planning period, calculates the costs of acquiring such land and constructing said improvements, calculates the percentage of each component for which the need is a result of new development during the planning period, and computes a development impact fee for different kinds of development projects; and WHEREAS, the City intends that monies received from the combined development impact fee shall only be used to fund the portion of public facilities expenses the need for which IALF\637833.5 01-101904-04706091 -1- Ordinance No. 2004-17 is caused by such new development, while the portion of public facilities expenses attributable to the existing population and workforce of the City are to be funded from a variety of other sources, which are discussed in the Nexus Study; and WHEREAS, the City staff has held numerous meetings with members of the public and trade organizations, and the City Council has held two study sessions at which public input was taken, and has received written comments from the public; and WHEREAS, the Mitigation Fee Act authorizes the City Council, after prescribed notice and public hearing, to levy development impact fees in amounts that do not exceed the estimated cost of providing the services for which the fees are levied; and WHEREAS, the City has determined that it will benefit the public interest to combine the five separate fees for the Public Facilities Components into a single fee, and to hold monies so collected in a segregated fund; and WHEREAS, the existing funds for the five Public Facilities Components shall be maintained, and monies intended for capital outlays for anyone of the individual components shall be transferred from the new Public Facilities fund created herein to the existing funds for the individual component prior to expenditure. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I Article VIII of Chapter 21 of the Gilroy City Code is hereby added to read as follows: Article VIII. Public Facilities Fees. Section 21.160. Purpose of article. The purpose of the Public Facilities development impact fees is to finance expansion of public facilities in the areas of police, fire, parks and recreation, library, and general public facilities to meet the projected needs of the City's growing population by imposing fees on development projects. This fee shall supplant the requirement for a development project to pay development impact fees under the existing police, fire, parks and recreation, library and general public facilities impact fees. IALF\637833.5 01-101904-04706091 -2- Ordinance No. 2004-17 Section 21.161. Definitions. (a) "Development project" shall have the same meaning as stated in Section 21.125 of this code. (b) "Time of payment" shall have the same meanmg as stated in Section 21.127 of this code. Section 21.162. Public Facilities impact fee required; fund established. (a) Approval of any development project by the city shall be conditioned upon the payment of Public Facilities impact fees in amounts in effect at the time of payment of the fees and as fixed from time to time by resolution of the city council. The city council resolution may establish separate fee rates for different categories of development projects. (b) All fees collected pursuant to the provisions of this article, and any earnings thereon, shall be placed in a separate Public Facilities impact fee fund in a manner to avoid any commingling of the fees with other revenues and funds, except for temporary investments or as may otherwise be permitted by law. The fees collected, and any earnings thereon, shall be expended solely for the acquisition and development of public facilities and the repayment of any indebtedness incurred by the city therefor. Section 21.163. Effective date; annual adjustment; five-year review. (a) This Public Facilities impact fee shall be collected as a combined fee commencing on January 1, 2005. From and after that date, no further impact fees for the five component fees that have been merged into this Public Facilities fee shall be collected, except that said fees shall be collected for any development project that has vested rights precluding the application of this Public Facilities fee to it. (b) The Public Facilities impact fee shall be adjusted annually effective January 1 of each calendar year based upon any increase in the Construction Cost Index as published by the Engineering News-Record (ENR) as measured from October to October of each year, starting with October, 2004. If the index decreases, no adjustment shall be made. In addition, the city council by resolution may adjust the amount of the fee from time to time based on new data. (c) Every five years commencing in the year 2009, the city shall comprehensively review this Public Facilities impact fee and the data upon which it is based, and shall reset the rates as appropriate for the ensuing five-year period. Section 21.164. Reimbursement for developer construction. If because of special conditions caused by a development project, the development project is required to construct any improvement or portion thereof which is listed in the most current approved city capital improvement budget, then the full Public Facilities impact fee hereunder shall be collected from the development project, but the development project shall be reimbursed for the full cost of the improvement constructed IALF\637833.5 01-101904-04706091 -3- Ordinance No. 2004-l7 (or, if only a portion of the improvement is constructed, the prorated portion of said construction cost), using the project cost as listed in said capital improvement budget as increased by the ENR index in the same manner that this fee is increased. In no event, however, shall the reimbursement exceed the cost or prorated cost of the improvement shown in the capital budget. This section shall also apply to contributions or dedications ofland by a development project. SECTION II If any section, subsection, subdivision, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The city council hereby declares that it would have passed this Ordinance and each section, subsection, subdivision, sentence, clause or phrase thereof, irrespective of the fact that anyone or more sections, subsections, subdivisions, sentences, clauses or phrases be declared unconstitutional or void or invalid. SECTION III This Ordinance shall be in full force and effect thirty (30) days after the date of its passage and adoption. PASSED AND ADOPTED this 1st day of November, 2004, by the following vote: AYES: COUNCILMEMBERS: CORREA, DILLON, MORALES, VALIQUETTE, VELASCO and PINHEIRO NOES: COUNCILMEMBERS: GARTMAN ABSENT: COUNCILMEMBERS: NONE ~TI') , // c.:.::t+_.!j;/Jl.-tJfA: (j/L~--e~<,- /< RhoiIda Pellin, City Clerk IALF\637833.5 01-101904-04706091 -4- Ordinance No. 2004-l7 I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2004-17 is an original ordinance, or a true and correct copy of a city ordinance, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 1 st day of November, 2004, at which meeting a quorum was present, and has been published or posted pursuant to law. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 4th day of November, 2004. ~...ule . ~.. . ~'- City Clerk of the City of Gilroy (Seal)