(a)

Definitions.

Impact fee means a charge imposed by a local government on new development to finance the costs of a capital improvement or facility expansion necessitated by and attributable to the new development. The term does not include a tax for the improvement of transportation imposed pursuant to NRS 278.710.

Capital improvement means a:

(1)

Drainage project;

(2)

Fire station project;

(3)

Park project;

(4)

Police station project;

(5)

Sanitary sewer project;

(6)

Street project; or

(7)

Water project.

Facility expansion means the expansion of the capacity of an existing facility associated with a capital improvement to serve new development. The term does not include the repair, maintenance or modernization of a capital improvement or facility.

Service unit means a standardized measure of consumption, use, generation or discharge which is attributable to an individual unit of development calculated for a particular category of capital improvements or facility expansion.

As used in this chapter, unless the context otherwise requires, the words and terms have the meanings ascribed to them in NRS 278B.010 to 278B.140, inclusive.

(b)

Applicability.

(1)

The city council may consider the imposition of impact fees on new development as a potential revenue source for construction or expansion of capital improvements projects in the formation and annual revision of a capital improvements plan per NRS ch. 278B.

(2)

In reviewing any application for new development, including, but not limited to, approval of a tentative subdivision map, planned development, special use permit or design review for commercial or industrial property which adds or increases the number of service units to be served by capital improvements projects, the community development department, public works department, planning commission and city council shall determine whether the new development is likely to require construction or expansion of capital improvement projects, and may employ the provisions of NRS ch. 278B to fund the same. In the event that new impact fees are introduced, then approval of the new development in question shall be conditioned to pay such impact fees.

(c)

Procedure. If the city council determines to proceed with the imposition of impact fees, it shall follow the procedure provided by NRS ch. 278B. The city council may establish a capital improvement advisory committee, the membership of which may be augmented as provided in NRS 278B.150, to meet the requirements thereof.

(Ord. No. 2020-005, § 1(Exh. A), 3-4-2020)

Purpose: The purpose of this chapter is to provide for agreements for reimbursement of the costs of constructing capital improvements or public facilities which result in a benefit to the community and subsequent development. The developer shall pay for the new infrastructure or improvements required to sustain the development.

(a)

Agreements. The city and developers, customers and/or other parties may enter into written agreements for the reimbursement or repayment of the costs of construction of oversized sewer and water main extensions, or other improvements to the infrastructure system, subject to the requirements of this chapter.

(b)

Reimbursement costs. The reimbursable costs may include the actual costs of construction of the main extension and/or other new facilities, including over sizing, related design, planning, engineering, inspections, testing fees and costs; as well as, the city's administration and overhead costs incurred.

(c)

Reimbursement amounts. The amount to be reimbursed by each new customer who utilizes the main extension of new facilities shall be determined by dividing the square footage of the customer's lot or parcel by the total square footage of all the lots or parcels included in the project, then multiplying the total cost of the project by that same fraction or percentage. For purposes of determining the total square footage of the lots and parcels included in the project:

(1)

The area of use will be defined to include lots/parcels that could use the main as their primary water source, and will not include excess acreage of a large parcel that has an inequitable amount of street frontage. The area of use will be mapped by the applicant and submitted for reference in order for city staff to verify an equitable distribution of amounts.

(2)

If a lot or parcel within the area of use is sub-parceled or subdivided, the reimbursement amount will be divided pro rata between or among the new parcels or lots so created, again determined by the square footage as described above.

(d)

Time of payment. The reimbursement amount shall be due and payable at the time of connection of the property to the main extension or other new line or facility, or at such other times as may be approved by the city by written agreement. The reimbursement amount must be paid, or the written agreement executed before water and wastewater service is provided to the property, or a road is accepted by the city.

(e)

Easements and rights-of-way. The provider of the new line or facility must obtain legal easements for the city for the new facility or any portion thereof, which would not be in an existing utility easement or right-of-way.

(f)

Oversizing of water, wastewater lines or facilities. The city engineer shall determine if water or sewer infrastructure shall be oversized. In the event the main extension or new line or facility is required to be larger than the developer would need because of the number of additional customers to be served, the costs of material for oversizing of the main extension or construction of extra oversized facilities shall be included in the reimbursable costs. The oversizing costs shall consist of the difference between the price of the larger pipe or other materials and the price of the pipe or facility that would be sufficient if the line were only to service that property alone. The reimbursement amount for the over sizing shall be used to reimburse the developer that paid to finance the oversized facility.

(g)

Time limit for reimbursement. The time limit for all reimbursement agreements shall be as determined by the city.

(h)

Construction of project. The city shall decide whether to construct the project or to allow the developer or other party to build the project. No construction may begin before the written reimbursement agreement is executed by the city council and relevant parties.

(i)

Bidding requirements. Regardless whether the city provides the construction, or allows a developer, or a third party to construct the capital improvement or public facility, the Nevada Revised Statutes bidding laws and requirements applicable to the city shall apply to the project. It is the contractor's obligation to ensure that Nevada Revised Statutes requirements for municipal projects and developments are met.

(j)

Agreement binding on successors. Reimbursement agreements shall be binding on the heirs and successors in interest of the parties to the reimbursement agreement.

(k)

Modifications of agreement. Reimbursements agreements may be altered, modified or amended only in writing by the parties.

(l)

Council action. Reimbursement agreements shall be processed as an ordinance in accordance with Nevada Revised Statutes and applicable codes.

(1)

Upon receiving recommendation from the community development department on a proposed reimbursement agreement, the city council shall hold a public hearing. The hearing shall be set, and notice given as prescribed in chapter 32.03 of this development code.

(2)

Following the closing of the public hearing, the city council shall determine if the reimbursement agreement is consistent with the city infrastructure master plan and objectives. If determined to be consistent, the city council may introduce a bill approving the reimbursement agreement.

(3)

Following the introduction of the bill, a second hearing shall be held and based on the testimony provided at the introduction and adoption hearings, the ordinance shall be adopted, denied or continued in compliance with the provisions set by law.

(4)

The ordinance shall be recorded with the Lyon County Recorder and the recorded copy of the reimbursement agreement must be provided to the city within seven calendar days of execution. The community development department shall forward the recorded reimbursement agreement to the assessor's office to become public record on all searches for properties affected by the reimbursement agreement within a reasonable time.

(Ord. No. 2020-005, § 1(Exh. A), 3-4-2020)

(a)

Required improvements and agreement to complete.

(1)

Applicability. The requirements of this chapter shall apply in all instances where improvements are required to be constructed in conjunction with division of land or in conjunction with other development permits.

(2)

Improvement requirements. As a condition precedent to the acceptance of any easements offered for dedication to the public, and prior to the approval of a final subdivision map, final parcel map or final division map for division of land into large parcels, the developer shall agree to improve at his own expense, and within a stated time, all land so dedicated with such improvements as set forth in this development code, and any final map shall not be approved until either such features have been improved as provided herein, or the developer has executed an agreement to so improve such features as secured by a bond or cash deposit.

(3)

Completion of improvements. Before a final subdivision map, final parcel map or final division map for division of land into large parcels is signed by the city, or before a final certificate of occupancy is issued for a new development project, all required improvements, set forth by the public works standards, this development code or conditions of approval, must be completed by the developer and approved by the city. The developer also shall construct all temporary improvements required as a condition of approval of the applicable map or development project and shall maintain those temporary improvements for the period specified in such approval. Any dedication of public improvements or land to the city shall be free and clear of all liens and encumbrances.

(4)

Deferral of required improvements. As an alternative to completion of the required improvements as referenced in subsection (3) above, the developer may provide a security in connection with the performance of completing required improvements. Posting of a security with the city shall be construed as an agreement to complete such improvements.

(5)

Failure to complete improvements. If the required improvements are not completed within the period specified in the applicable approval conditions, or within two years following the date of recordation of a final subdivision map, final parcel map, or a final map for division of land into large parcels or issuance of a certificate of occupancy, the applicable map or development approval shall be deemed to have expired.

(b)

Security.

(1)

As an alternative to completion of the required improvements, the developer may provide a security, as defined in this chapter, for an amount not less than 110 percent of the approved engineer's estimate of the cost of improvements:

a.

Cash;

b.

A certificate of deposit;

c.

A deed of trust, together with an appraisal of the subject property prepared by a MAI appraiser, and a title report and a policy of title insurance issued by a person authorized to issue title insurance under NRS 69A.022;

d.

A lender's set aside agreement;

e.

A letter of credit;

f.

A surety bond (not to exceed more than 50 percent of the total bond amount);

g.

A trilateral agreement.

(2)

All forms of security listed above must be in a form approved by the city and it is the responsibility of a developer to submit to the city upon request proof of the existence of any license or permit required by this chapter of a person issuing a security device or participating in a security agreement.

(3)

A developer may substitute one form of security permitted by this chapter for another form of security permitted by this chapter.

(4)

Reduction in performance security. The city engineer may authorize in writing the release of a portion of the security in conjunction with the acceptance of the satisfactory completion of a part of the improvements upon application by the developer. In no case shall the security be reduced to less than ten percent of the total improvement security given for faithful performance. The amount of reduction of the security shall be determined by the city engineer; however, in no event shall the city engineer authorize a release of the improvement security which would reduce the security to an amount below that required to guarantee the completion of the improvements and any other obligation.

(5)

Once the city has accepted 100 percent of the subject improvements, 90 percent of the surety held by the city will be released. Ten percent of the original surety will be retained by the city (a substitute maintenance surety may be posted that is equal to ten percent of the original surety) to secure the developers obligation to repair defects in workmanship and materials which appear in the improvements within one year of acceptance by the city.

(6)

Securities filed with other agencies. If a security is required by another governmental agency for improvements the same improvements required by the city, the developer is not required to submit a security with the city for the same improvements. Proof of filing of such security with the other governmental agency shall be submitted.

(c)

Remedies. In those cases where securities have been posted and required public improvements have not been installed within the terms of the agreement, the city may then:

(1)

Declare the agreement to be in default and require that all the improvements be installed regardless to the extent of the building development at the time the agreement is declared to be in default;

(2)

Suspend map approval until the improvements are completed and record a document to that effect for the purpose of public notice;

(3)

Obtain funds under the security and complete improvements itself or through a third party;

(4)

Assign its right to receive funds under security to any third party, including a subsequent owner of the land to be divided for which improvements were not constructed, in whole or in part, in exchange for that subsequent owner's promise to complete the required improvements; or

(5)

Exercise any other rights available under the law.

(d)

Acceptance of dedication offers. Acceptance of formal offers of dedication of streets, utilities, public areas and easements, shall be made after the improvements are inspected and approved by the city.

(e)

Inspection and certification of improvements.

(1)

General procedure. The city shall inspect the required improvements during construction and ensure their satisfactory completion. Prior to the commencement of any work, the developer shall obtain a grading permit or a building permit, where applicable, and provide a fee set by resolution. Where the improvements are completed prior to approval of the applicable map, such map shall not be signed by the city engineer unless the inspection fee has been paid at the time of application. No building permits or certificates of occupancy shall be issued until all fees are paid. If it is determined upon inspection that any one or more of the required improvements have not been constructed in accordance with the city's construction standards the developer shall be responsible for properly completing the improvements.

(2)

Notice of completion. The dedication of required public improvements will not be accepted, nor the amount of any remaining security posted by the developer be reduced until the city engineer or other agency has submitted a notice of completion stating that all required improvements have been satisfactorily completed.

(f)

Issuance of building permits and certificates of occupancy.

(1)

Public improvements. When an improvement agreement and security has been required by this chapter, no certificate of occupancy for any structure or facility built on the project covered by such agreement shall be issued prior to the completion of the required public improvements.

(2)

On-site improvements. A temporary certificate of occupancy may be issued for a development if a security in the amount of 110 percent of the cost of remaining on-site improvements is filed with the city. The temporary certificate of occupancy shall not exceed 90 days.

(Ord. No. 2020-005, § 1(Exh. A), 3-4-2020)