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San Bruno City Zoning Code

CHAPTER 12

260 DEVELOPMENT IMPACT FEES

§ 12.260.010 Purpose.

The purpose of this chapter is to impose fees upon development projects that fully or partially offset the costs of public facilities that are needed to serve demand created by that development project. The amount of fees will not include the costs attributable to demand generated by existing development.
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022)

§ 12.260.020 Definitions.

"Building permit"
means a full structural building permit as well as partial permits such as foundationonly permits.
"Developer"
means the owner of land that is to be developed as part of a development project; however, developer does not include: (1) the city; and/or (2) with respect to any fee other than the utilities facilities impact fee, the United States or any of its agencies, the state of California or any of its agencies, the California State University, the Regents of the University of California, a county, a county office of education, a city, a school district, community college district, or any other district, a public authority, or any other political subdivision or public corporation of the state of California.
"Development project" or "project"
means a development or redevelopment project that requires a building permit under this code.
"Fee"
means a fee imposed pursuant to Section 12.260.030 of this chapter.
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022)

§ 12.260.030 Fees imposed.

A. 
Except as otherwise provided in this chapter, the following fees are hereby imposed upon the developer of each development project in the city as a condition of development:
1. 
Community facilities impact fee;
2. 
Public safety facilities impact fee;
3. 
General government facilities impact fee;
4. 
Utilities facilities impact fee;
5. 
Transportation facilities impact fee.
B. 
The fee is imposed on the following development projects:
1. 
Nonresidential Development Projects.
a. 
New construction of gross square feet of space for nonresidential uses.
b. 
Construction that includes the conversion of existing nonresidential building space from one land use category to a different land use category that would change from a fee category with a lower fee to a fee category with a higher fee. There is no fee if the change in use is from a higher to a lower fee category. No credit is given if there is a negative impact fee amount.
c. 
Construction that adds additional square footage added with the expansion or interior alteration of an existing nonresidential structure.
For development projects that include multiple nonresidential land use types, the fees are calculated for each specific land use based on the floor plans submitted for the building permit. The use type is determined by the primary use, not uses that are accessory to the primary use.
2. 
Residential Development Projects.
a. 
New construction of one or more residential dwelling units.
b. 
Construction that includes the conversion of existing nonresidential building space to one or more residential dwelling units.
c. 
Construction that adds one or more residential dwelling units with the expansion or interior alteration of an existing residential structure.
3. 
Mixed Residential and Nonresidential Development Projects. New construction of one or more residential dwelling units, or gross square feet of space for nonresidential uses.
For development projects that include multiple land use types, the fees are calculated for each specific land use based on the floor plans submitted for the building permit. Accessory dwelling units are subject to applicable development impact fees as specified in Section 12.90.080(D).
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022)

§ 12.260.040 Rate.

The rate of each fee shall be set by the city council by ordinance or resolution. At the time it sets a rate, the city council shall make each of the findings required by Section 66001(a) of the California Government Code.
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022)

§ 12.260.050 Payment.

A. 
Except as otherwise provided in this section, the fees required by this chapter shall be paid prior to the issuance of a building permit for the development project. The city shall not issue a building permit for a development project unless the fees have been paid.
B. 
The fees for a development project shall be calculated at the rates in effect as of the date the fees are paid, or as otherwise required by law. A developer may pay all or a portion of the fee owed at any time prior to issuance of the building permit, at the rate in effect at the time payment is made. For phased projects, the amount due shall be paid on a pro rata basis based on the ratio of the square footage, or housing units, of the phase being constructed to the entire square footage, or housing units, of the approved development, and each portion shall be paid prior to the issuance of any building permit for each phase.
C. 
If applicable state law does not permit the city to require payment of the fees for a development project on the schedule set forth in subsection A of this section, then the fees for that development project shall be paid on a lump sum basis for the entire development project at the earliest date that the city is permitted to require such payment under state law. If payment is to be made pursuant to this section, the city shall not issue a building permit to the developer until: (1) the developer and the city enter into a contract for delayed payment as authorized by Section 66007(d) of the California Government Code; (2) such contract is recorded in the manner set forth in that section; and (3) unless the developer is specifically exempt from such requirement under state law, the developer posts a performance bond or a letter of credit from a federally insured, recognized depository institution to guarantee payment of the fees.
D. 
A housing project that meets the projected density represented in the City's Regional Housing Needs Allocation Table of the 2023-2031 Housing Element Sites Inventory may defer payment of all city impact fees to when the first certificate of occupancy or first temporary certificate of occupancy is issued, whichever occurs first, pursuant to Program 10b of the 2023-2031 Housing Element, subject to the developer and the city entering a recorded contract for deferred payment.
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022; Ord. 1958, 1/28/2025)

§ 12.260.060 Credit for redevelopment.

Where the development project involves the demolition of an existing structure and its replacement with a new structure, the developer shall be entitled to credits against the fees required by this chapter. A credit shall not be applied for any building or part of a building unless the developer can establish, to the satisfaction of the city, that the building or part of building was either occupied by a resident (for a residential building) or occupied by a business that conducted actual business activities (for a nonresidential building) during six of the twelve months prior to the date on which a complete and adequate building permit application for the development is submitted. A credit shall be calculated separately for each of the five fees imposed pursuant to Section 12.260.030 of this chapter. Each credit shall be equal to the fee that would be charged for the development of the structure to be demolished, calculated at the rate in effect on the date the fees are paid. In no event shall the amount of the credit reduce any fee for the development project below zero dollars, and a credit may not be transferred to any other development project in the city, applied to any of the five fees other than the fee for which it was calculated or used for any purpose other than offsetting fees imposed pursuant to this chapter. For example, a credit calculated based on the rate for the community facilities impact fee may not be applied to any fee other than the community facilities impact fee.
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022)

§ 12.260.070 Improvement agreement.

A. 
The city may, but is not required to, enter into an improvement agreement with a developer pursuant to which the developer will construct, pursuant to city standards and requirements, one or more public improvements that would otherwise be eligible for funding with the proceeds of a fee.
B. 
The credit amount shall be the engineering and construction costs that would be reasonably incurred by the city in building the public facility, and shall not exceed the amount set forth in the improvement agreement.
C. 
The credit will be available to the developer only upon completion of the public improvement to the satisfaction of the city.
D. 
The credit shall be applied first to the fee that would otherwise be eligible to fund the public improvement. For example, a credit awarded for construction of a transportation facility shall be applied first against the transportation facilities impact fee for the development project. If the amount of the credit exceeds the amount of the associated fee, the credit may be applied to other fees due against the development project pursuant to this chapter. When a credit is applied against some other fee, an amount equal to the credit shall be transferred by the city from the fund established pursuant to Section 12.260.080 of this chapter for the associated fee to the fund established pursuant to Section 12.260.080 for the fee to which the credit is applied. For example, if a fifty thousand dollar credit for a transportation facility is applied to a public safety facilities impact fee, then fifty thousand dollars shall be transferred from the city's transportation facilities impact fee fund to the city's public safety facilities impact fee fund.
E. 
The improvement agreement must be approved by the city council and may include any additional terms as the city council finds to be necessary or useful.
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022)

§ 12.260.080 Special funds.

A. 
The following accounts or funds shall be established:
1. 
Community facilities impact fee fund;
2. 
Public safety facilities impact fee fund;
3. 
General government facilities impact fee fund;
4. 
Utilities facilities impact fee fund;
5. 
Transportation facilities impact fee fund.
B. 
When the city receives payment of a fee pursuant to this chapter, that payment shall be deposited in the appropriate account or fund established pursuant to this section in a manner that avoids any commingling of the fees with other revenues and funds of the city, except for temporary investments.
C. 
Any interest income earned by moneys in an account or fund established pursuant to this section shall also be deposited in that account or fund.
D. 
Moneys in the community facilities impact fee fund shall be expended by the city only for parkland acquisition and library, park and recreation improvements.
E. 
Moneys in the public safety facilities impact fee fund shall be expended by the city only for police and fire capital facilities and equipment.
F. 
Moneys in the general government facilities impact fee fund shall be expended by the city only for community facilities and equipment necessary to maintain general government functions.
G. 
Moneys in the utilities facilities impact fee fund shall be expended by the city only for water, sewer, storm drainage, and telecommunications infrastructure and equipment.
H. 
Moneys in the transportation facilities impact fee fund shall be expended by the city only for transportation infrastructure.
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022)

§ 12.260.090 Annual report.

For each separate account or fund established pursuant to Section 12.260.080 of this chapter, the city shall comply with the public reporting requirements in Sections 66001 and 66006 of the California Government Code.
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022)

§ 12.260.100 Appeals.

A. 
If a developer believes that one or more of the fees applied to his or her project have been calculated incorrectly by the city, a developer may apply to the city manager for an adjustment to those fees.
B. 
Any such appeal must be made in writing, and must include a proposed revised fee amount and an explanation of why the proposed revision constitutes a correct application of the terms of this chapter and of any resolutions or other actions of the city council that set the rate of the fees or that otherwise affect the fees.
C. 
The written appeal must be filed no later than the later of: (1) ten days after the date on which the fee becomes due; or (2) ten days after the date on which the fee is paid. An appeal may be filed prior to payment of a fee; however, full payment of the fee, as calculated by the city shall remain a precondition to issuance of a certificate of occupancy or the conduct of a final inspection (as applicable) unless and until the city manager makes a determination that revises the amount of the fees.
D. 
The city manager shall have thirty days to respond to the appeal after it had been filed, either by determining that the original calculated amount was correct, or by determining that a revised amount should be due. The determination of the city manager is the final determination of the city. If the city manager does not respond to the appeal within the thirty-day period, the appeal shall be deemed finally rejected.
E. 
If the city manager determines that the correct fee is less than the amount already paid to the city, the city will refund to the developer the amount of the overpayment. If the city manager determines that the correct fee is greater than the amount already paid to the city, the developer shall pay to the city the amount of the underpayment.
F. 
The appeals process set forth in this section applies solely to the case where the developer believes that the city has incorrectly applied the fees according to the city's ordinances, resolutions, city council actions, and regulations. It does not apply to any claim that any such approved ordinances, resolutions, actions or regulations exceed the authority of the city or violate state or federal law. This section does not excuse the developer from compliance with Chapter 9 of Division 1 of Title 7 of the California Government Code (beginning with Section 66020) with respect to any matter subject to that chapter of the Government Code.
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022; Ord. 1947, 4/9/2024)

§ 12.260.110 Regulations.

The city manager may promulgate such interpretive regulations for the application of this chapter as the city manager finds necessary or useful.
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022; Ord. 1947, 4/9/2024)

§ 12.260.120 Inflation adjustment.

Each July 1 each rate is automatically adjusted to reflect the change in the California Construction Cost Index for San Francisco, California published by the Engineer News Record (or any successor to such index) during the twelve months prior to the February proceeding that July 1. However, the City Council may, by resolution, prevent any such adjustment from taking effect.
(Ord. 1869 § 3, 2019; Ord. 1933 § 3, 2022)

§ 12.260.130 Bayhill specific plan area development impact fee program.

The Bayhill specific plan area development impact fee program applies separately from and in addition to the fees set forth in this chapter. The Bayhill specific plan area development impact fee program is set forth in Chapter 12.265 of Title 12 (Land Use) and applies to all development projects within the Bayhill specific plan area.
(Ord. 1933 § 3, 2022)