The city council of the city of Santa Clara (the "council") finds and determines that growth and development activity in the city will create additional demand and need for public streets and roads, publicly owned parks, open space and recreational facilities, storm drainage, electrical facilities, sanitary sewer facilities, culinary water facilities, and public safety facilities in the city and the council finds that growth and development activity should pay a proportionate share of the cost of such planned facilities needed to serve the growth and development activity. The council further finds that impact fees are necessary to achieve an equitable allocation to the costs borne in the past and to be borne in the future, in comparison to the benefits already received and yet to be received. Therefore, pursuant to Utah Code Annotated, title 11, chapter 36a, the council adopts this chapter to assess impact fees for planned facilities. The provisions of this chapter shall be liberally construed in order to carry out the purpose of the council in establishing the impact fee program. (Ord. 2011-02)

The following words and terms shall have the following meanings for the purposes of this chapter, unless the context clearly requires otherwise:

   ADMINISTRATIVE OFFICER: The city manager, unless the city council, by resolution, appoints another person, persons and/or official to administer this chapter.

   BUILDING PERMIT: The permit required for any "development activity" as defined herein, pursuant to section 17.04.060 of this code.

   CONSTRUCTION VALUE: The value of construction per square foot used by the city to determine plan check and building permit fees, multiplied by the area of development activity.

   DEVELOPMENT ACTIVITY: Any subdivision of land or any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any change in the use of land, which is accompanied by a request for a building permit.

   DWELLING UNIT: A primary or secondary residential unit, including, but not limited to, single-family dwelling, duplex, condominium unit, townhouse, apartment unit, multi-family unit or mobile home.

   ELECTRICAL POWER IMPACT FEE: The impact fee imposed as a condition precedent to the approval of a building permit that is used to offset the proportionate impact of the development activity on the need for the planning, design, engineering, acquisition, financing and construction of additional electrical power generation, transmission and distribution facilities.

   ENCUMBER: To reserve, set aside or otherwise earmark the impact fees in order to pay for commitments, contractual obligations or other liabilities incurred for public facilities.

   ENVIRONMENTAL MITIGATION IMPACT FEE: The impact fee imposed as a condition precedent to the approval of a building permit that is used to offset the proportionate impact of the development activity related to environmental mitigation expenses related to environmental mitigation as provided in Utah Code Annotated section 11-36a-205.

   FIRE PROTECTION IMPACT FEE: The impact fee imposed as a condition precedent to the approval of a building permit that is used to offset the proportionate impact of the development activity on the need for planning, design, acquisition, engineering, financing, and construction of fire protection facilities.

   IMPACT FEE: Any fee levied pursuant to this chapter as a condition of approval of a subdivision plat or approval of a building permit.

   INDEPENDENT FEE CALCULATION: An impact fee calculation prepared by a fee payer to support assessment of an impact fee different from any fee set forth herein.

   LAW ENFORCEMENT IMPACT FEE: The impact fee imposed as a condition precedent to the approval of a building permit that is used to offset the proportionate impact of the development activity on the need for the planning, design, acquisition, engineering, financing, and construction of law enforcement facilities.

   OWNER: The owner of record of real property, or a person with an unrestricted written option to purchase property; provided that, if the real property is being purchased under a recorded real estate contract, the purchaser shall be considered the owner of the real property.

   PARKS, TRAILS AND OPEN SPACE IMPACT FEE: The impact fee imposed as a condition precedent to approval of a building permit that is used to offset the proportionate impact of the development activity on the need for the planning, design, engineering, acquisition, financing and construction of city owned parks, trails and open space.

   PRIMARY DWELLING UNIT: Any dwelling unit used as a full time residence and taxed as such pursuant to Utah Code Annotated chapter 59-2 et seq.

   PROJECT IMPROVEMENT: Site improvements and facilities that are planned and designed to provide service for the development activity and are necessary for the use and convenience of the development resulting from the development activity.

   PUBLIC FACILITY: Any structure built by or for, or maintained by, a governmental entity.

   SEWER DEVELOPMENT IMPACT FEE: The impact fee imposed as a condition precedent to approval of a building permit that is used to offset the proportionate impact of the development activity on the need for the planning, design, engineering, acquisition, financing and construction of additional sewer collection and sewer treatment facilities.

   STORMWATER DRAIN DEVELOPMENT IMPACT FEE: The impact fee imposed as a condition precedent to approval of a building permit that is used to offset the proportionate impact of the development activity on the need for the planning, design, engineering, acquisition, financing and construction of additional stormwater drain facilities.

   STREETS DEVELOPMENT IMPACT FEE: The impact fee imposed as a condition precedent to approval of a building permit that is used to offset the proportionate impact of the development activity on the need for the planning, design, engineering, acquisition, financing and construction of additional street facilities.

   WATER DEVELOPMENT IMPACT FEE: The impact fee imposed as a condition precedent to approval of a building permit that is used to offset the proportionate impact of the development activity on the need for the planning, design, engineering, acquisition, financing and construction of water delivery systems, and for the acquisition and transfer of water rights and points of diversion and the planning, design, engineering, acquisition, financing and construction of physical sources to realize those water rights. (Ord. 2013-15)

The corporate boundaries of the city of Santa Clara, as presently defined and as they may, from time to time, be modified, are established as the boundaries of the service area within which the city shall calculate and impose the impact fees. (Ord. 2011-02)

The collection of impact fees shall apply to all new development in the city unless otherwise provided herein. Until any applicable impact fee required by this chapter has been paid in full, no building permit, electrical permit, certificate of compliance, certificate of occupancy, recording of subdivision plat, or other permit subsequent to development plan approval for any development shall be issued. A stop work order shall be issued on any development for which the applicable impact fee has not been paid in full.

   A.   Park: Park impact fees shall apply only to new residential development.

   B.   Electrical: Electrical impact fees shall apply to any land use that makes improvements to any land which will generate a need for electrical service.

   C.   Streets: Streets impact fees shall apply to any land use which makes improvements to any land which will generate additional traffic.

   D.   Water: Water impact fees shall apply to any connection to the culinary water system, placing additional demand for storage facilities and distribution lines.

   E.   Sewer: Sewer impact fees shall apply to any connection to the sanitary sewer system, placing additional demand for treatment facilities and/or distribution lines.

   F.   Public Safety: Public safety impact fees shall apply to any development of land or land use which makes improvements to any land which will generate additional public safety (fire and police protection) needs.

   G.   Other Impact Fees: Any impact fees required by contract, agreement or other association of the city of Santa Clara with other entities shall be considered a part of this chapter.

   H.   Movement Of Structures: The movement of a structure onto a lot shall be considered development and shall be subject to the impact fee provisions, unless otherwise provided herein. (Ord. 2011-02)

Impact fees shall be assessed and calculated according to the terms of the current applicable capital facilities plan and impact fee calculation study approved by the council by resolution and as adjusted and allocated by said council provided that:

Existing lots that have not been assessed impact fees in the past at platting, to which impact fees are now assessed, shall be deemed due and assessed in connection with the approval of the building permit.

Where impact fees have been paid at platting in the past to any part or category of impact fees, applicants for building permit for new construction involving new impact to the systems shall be given credit for any prior impact fee paid at platting against the fee otherwise due at the approval of the building permit. (Ord. 2013-15)

   A.   The following development activities shall be exempt from the payment of impact fees:

      1.   Replacement of a habitable structure with a new structure of the same use at the same site or lot when such replacement occurs within twelve (12) months of the demolition or destruction of the structure and does not result in the construction of an additional dwelling unit or a change in use.

      2.   Alterations to, or expansion, enlargement, remodeling, rehabilitation, or conversion of an existing dwelling unit where no additional dwelling unit is created, or alteration to, or remodeling or rehabilitation of an existing development activity that does not result in expansion of the existing use. To the extent that an existing use is expanded, an incremental developmental impact fee equal to the difference between the fee that would have been charged for the existing use and the fee that would have been charged for the expanded use shall be charged.

   B.   The administrative officer shall determine whether a particular dwelling unit falls within the exemption identified in this or any other section. Determinations by the administrative officer shall be reduced to writing, which shall state the basis therefor, and shall be subject to the appeals procedures set forth in section 3.04.090 of this chapter. (Ord. 2011-02: Ord. 98-04 § 2: Ord. 96-102 § 3: prior code § 7-114)

   A.   A fee payer can request that an offset or offsets be awarded to him or her for the value of a system improvement required by the city as a condition of approval of a development activity under the following conditions:

      1.   For each request for an offset or offsets, unless otherwise agreed, the fee payer shall retain an appraiser approved by the city to determine the value of the system improvement provided by the fee payer.

      2.   The fee payer shall pay the cost of the appraisal.

      3.   After receiving the appraisal, the administrative officer shall provide the applicant with a letter or certificate setting forth the dollar amount of the offset, the reason for the offset, where applicable, the legal description of the site donated, and the legal description or other adequate description of the project or development to which the offset may be applied. The applicant must sign and date a duplicate copy of the letter or certificate indicating his or her agreement to the terms of the letter or certificate and return the signed document to the administrative officer before the impact fee offset will be awarded. The failure of the applicant to sign, date, and return the document within sixty (60) days shall nullify the offset.

      4.   Any claim for offset must be made not later than the time of application for a building permit. Any claim not so made shall be deemed waived.

      5.   Determinations made by the administrative officer pursuant to this section shall be subject to the appeals set forth in section 3.04.090 of this chapter. (Ord. 2011-02: Ord. 96-102 § 3: prior code § 7-115)

The city council may waive all or a portion of development impact fees for development activity attributable to:

   A.   Affordable housing;

   B.   The state;

   C.   A school district or charter school, provided that a request for waiver made by either a school district or charter school shall be reviewed and approved on the same basis; or

   D.   Other development activity with a broad public purpose.

Except for a waiver granted for development activity attributable to affordable housing, when granting a waiver of impact fees the city council shall identify one or more sources of funds other than impact fees to pay for that development activity. (Ord. 2015-14)

   A.   A fee payer may appeal the impact fees imposed or other determinations which the administrative officer is authorized to make pursuant to this chapter. However, no appeal shall be made unless and until the impact fees at issue have been paid.

   B.   Appeals shall be taken within ten (10) days of the administrative officer's issuance of a written determination, by filing with the city a notice of appeal specifying the grounds for the appeal. The city shall hear the appeal and issue a written decision no later than thirty (30) days after the challenge to the impact fee is filed.

   C.   The city shall fix a time for the hearing of the appeal and give notice to the parties in interest. At the hearing, any party may appear in person or by agent or attorney.

   D.   The city council is authorized to make findings of fact regarding the applicability of the impact fees to a given development activity, the availability or amount of the offset, or the accuracy or applicability of any independent fee calculation. The decision of the city council shall be final, and may be appealed to the appropriate court of law.

   E.   The city council may, so long as such action is in conformance with the provisions of this chapter, reverse or affirm, in whole or in part, or may modify the determinations of the administrative officer with respect to the amount of the impact fees imposed or the offset awarded upon a determination that it is proper to do so based on principles of fairness, and may make such order, requirements, decision or determination as, in its judgment, ought to be made.

   F.   Where the city council determines that there is a flaw in the impact fee program or that a specific exemption or offset should be awarded on a consistent basis or that the principles of fairness require amendments to this chapter, the city council shall advise the city attorney as to any question or questions that the city council believes should be reviewed and/or amended.

   G.   Within ninety (90) days of a decision by the city council or within one hundred twenty (120) days after the date the challenge to the impact fee was filed, whichever is earlier, any party who is adversely affected by the decision may petition the district court for a review of the decision. (Ord. 2011-02: Ord. 96-102 § 3: prior code § 7-116)

   A.   Impact fees shall be earmarked specifically and deposited in special interest bearing accounts. The fees received shall be prudently invested in a manner consistent with the investment policies of the city.

   B.   Funds withdrawn from these accounts must be used in accordance with the provisions of section 3.04.120 of this chapter. Interest earned on the impact fees shall be retained in each of the accounts and expended for the purposes for which the impact fees were collected. Money in these accounts shall not be commingled with other funds.

   C.   Impact fees shall be disbursed, expended, or encumbered within six (6) years of receipt, unless the city council identifies in written findings an extraordinary and compelling reason or reasons for the city to hold the fees beyond the six (6) year period. Under such circumstances, the city council shall establish the period of time within which impact fees shall be expended or encumbered. (Ord. 2011-02: Ord. 96-102 § 3: prior code § 7-117)

   A.   If the city fails to disburse, expend, or encumber the impact fees within six (6) years of when the fees were paid, or where extraordinary or compelling reasons exist, such other time periods as established pursuant to subsection 3.04.100C of this chapter, the current owner of the property on which the impact fees have been paid may request a refund of the fees. In determining whether impact fees have been disbursed, expended, or encumbered, the fees shall be considered disbursed, expended, or encumbered on a first in, first out basis.

   B.   Owners seeking a refund of impact fees must submit a written request for a refund of the fees to the administrative officer within one hundred eighty (180) days of the date that the right to claim the refund arises.

   C.   Any impact fees for which no application for a refund has been made within the one hundred eighty (180) day period shall be retained by the city and expended on the type of public facilities for which they were collected.

   D.   Refunds of impact fees under this section shall include any interest earned on the impact fees.

   E.   When the city seeks to terminate any or all components of an impact fee program, any funds not disbursed, expended, or encumbered from any terminated component or components, including interest earned, shall be refunded pursuant to this section. Upon finding that any or all fee requirements are to be terminated, the city shall place notice of such termination, and the availability of refunds, in a newspaper of general circulation at least two (2) times. All funds available for refund shall be retained for a period of one hundred eighty (180) days. At the end of the one hundred eighty (180) day period, any remaining funds shall be retained by the city, but must be expended on the type of public facilities for which they were collected.

   F.   The city shall refund to the owner of property for which impact fees have been paid all impact fees paid, including interest earned on the impact fees attributable to the particular development activity, within one year of the date that right to claim the refund arises, if the development activity for which the impact fees were imposed did not occur, no impact resulted, and the owner makes written request for a refund within one hundred eighty (180) days of the expiration or abandonment of the permit for development activity. (Ord. 2011-02: Ord. 96-102 § 3: prior code § 7-118)

   A.   Pursuant to this chapter and subject to the provisions of Utah code section 11-36-302, impact fees:

      1.   Shall be used for public facilities that reasonably benefit the new development; and

      2.   Shall not be imposed to make up for deficiencies in public facilities serving existing developments; and

      3.   Shall not be used for maintenance or operation of public facilities.

   B.   Impact fees may be used to recoup costs of designing, constructing and/or the expansion of existing facilities in anticipation of new growth and development to the extent that the development activity will be served by the previously constructed improvements or the previously incurred costs.

   C.   In the event that bonds or similar debt instruments are or have been issued for the advanced provision of public facilities for which impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities or improvements provided are consistent with the requirements of this section and are used to serve the development activity. (Ord. 2011-02: Ord. 98-08 § 2: Ord. 96-102 § 3: prior code § 7-119)

   A.   Except as herein otherwise provided, impact fees are in addition to any other requirements, taxes, fees or assessments imposed by the city on development or the issuance of building permits or certificates of occupancy which are imposed on and due against property within the jurisdiction of the city. Impact fees are intended to be consistent with the city's general plan, capital facilities plan, land development ordinances and other city policies, ordinances and resolutions by which the city seeks to ensure the provision of capital facilities in conjunction with development.

   B.   In addition to the use of impact fees, the city may finance qualifying capital improvements through the issuance of bonds, the formation of assessment districts or any other authorized mechanism, in such manner and subject to such limitation as may be provided by law. (Ord. 2011-02)

   A.   The city may adjust the impact fees or service areas periodically, for an impact fee, after a study and proper notice as provided in Utah Code Annotated title 11, chapter 36a, as amended.

   B.   The city may adjust the standard impact fee in the current applicable calculation of impact fees study to:

      1.   Respond to unusual circumstances in specific areas.

      2.   Ensure the impact fees are imposed fairly. (Ord. 2011-02)

   A.   If a fee payer believes that a fee should be charged different from the impact fees determined according to this chapter, the fee payer shall prepare and submit to the city administrator an independent fee calculation for the impact fee(s) associated with the development activity for which a building permit is sought. The documentation submitted shall show the basis upon which the independent fee calculation was made. The administrative officer is not required to accept any documentation which the administrative officer reasonably deems to be inaccurate, unsubstantiated, or unreliable, and may require the fee payer to submit additional or different documentation prior to the administrative officer's consideration of an independent fee calculation.

   B.   Any fee payer submitting an independent fee calculation shall pay an administrative processing fee, per calculation, of one hundred dollars ($100.00).

   C.   Based on the information within the administrative officer's possession, the administrative officer is authorized to adjust the impact fee to the specific characteristics of the development activity, and/or according to principles of fairness. Such adjustments shall be preceded by written findings justifying the fee.

   D.   Determinations made by the administrative officer pursuant to this section may be appealed subject to the procedures set forth in section 3.04.090 of this chapter. (Ord. 2011-02: Ord. 96-102 § 3: prior code § 7-120)

Any firm, corporation, person, or persons violating any of the provisions of this chapter shall be guilty of a class B misdemeanor and, upon conviction, shall be punishable by a fine not to exceed two hundred ninety nine dollars ($299.00) or imprisonment for not more than six (6) months, or both, at the discretion of the court. (Ord. 2011-02: Ord. 96-102 § 3: prior code § 7-121)

It is the intent of the city to repeal its utility revenue tax levied on gas energy sales within Santa Clara and adopt the municipal sales and use tax, pursuant to, and in conformance with, Utah Code Annotated section 10-1-301 et seq, "the municipal energy sales and use tax act". (Ord. 97-11 § 2: prior code § 6-301)

As used in this chapter:

   CONSUMER: A person who acquires taxable energy for any use that is subject to municipal energy sales and use tax.

   CONTRACTUAL FRANCHISE FEE: A. A fee:

      1.   Provided for in a franchise agreement; and

      2.   That is consideration for the franchise agreement; or

   B.   1. A fee similar to subsection A of this definition; or

      2.   Any combination of subsection A or B of this definition.

   DELIVERED VALUE: The fair market value of the taxable energy delivered for sale or use in the municipality and includes:

   A.   The value of the energy itself; and

   B.   Any transportation, freight, customer demand charges, service charges, or other costs typically incurred in providing taxable energy in usable form to each class of customer in the municipality.

"Delivered value" does not include the amount of a tax paid under part 1 or part 2 of chapter 12, title 59, of the Utah Code Annotated.

   ENERGY SUPPLIER: A person supplying taxable energy, except for persons supplying a de minimus amount of taxable energy, if such persons are excluded by rule promulgated by the state tax commission.

   FRANCHISE AGREEMENT: A franchise or an ordinance, contract, or agreement granting a franchise.

   FRANCHISE TAX: A. A franchise tax;

   B.   A tax similar to a franchise tax; or

   C.   Any combination of subsection A or B of this definition.

   PERSON: Means and includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city, municipality, district, or other local governmental entity of the state, or any group or combination acting as a unit.

   SALE: Any transfer of title, exchange, or barter, conditional or otherwise, in any manner, of taxable energy for a consideration. It includes:

   A.   Installment and credit sales;

   B.   Any closed transaction constituting a sale;

   C.   Any transaction under which right to acquire, use or consume taxable energy is granted under a lease or contract and the transfer would be taxable if an outright sale were made.

   STORAGE: Any keeping or retention of taxable energy in this city for any purpose except sale in the regular course of business.

   USE: The exercise of any right or power over taxable energy incident to the ownership or the leasing of the taxable energy.

"Use" does not include the sale, display, demonstration, or trial of the taxable energy in the regular course of business and held for resale.

   TAXABLE ENERGY: Gas and electricity. (Ord. 97-11 § 2: prior code § 6-302)

There is levied, subject to the provisions of this chapter, a tax on every sale or use of taxable energy made within the city equaling six percent (6%) of the delivered value of taxable energy to the consumer. This tax shall be known as the municipal energy sales and use tax.

   A.   The tax shall be calculated on the delivered value of the taxable energy to the consumer.

   B.   The tax shall be in addition to any sales or use tax on taxable energy imposed by the city authorized by title 59, chapter 12, part 2 of the Utah Code Annotated, the local sales and use tax act. (Ord. 97-11 § 2: prior code § 6-303)

   A.   No exemptions are granted from the municipal energy sales and use tax except as expressly provided in Utah Code Annotated section 10-1-305(2)(b); notwithstanding an exemption granted by section 59-1-104 of the Utah code.

   B.   The following are exempt from the municipal energy sales and use tax, pursuant to Utah Code Annotated section 10-1-305(2)(b):

      1.   Sales and use of aviation fuel, motor fuel, and special fuels subject to taxation under title 59, chapter 13 of the Utah Code Annotated;

      2.   Sales and use of taxable energy that is exempt from taxation under federal law, the United States constitution, or the Utah constitution;

      3.   Sales and use of taxable energy purchased or stored in the state for resale;

      4.   Sales or use of taxable energy to a person, if the primary use of the taxable energy is for use in compounding or producing taxable energy or a fuel subject to taxation under title 59, chapter 13 of the Utah Code Annotated;

      5.   Taxable energy brought into the state by a nonresident for the nonresident's own personal use or enjoyment while within the state, except taxable energy purchased for use in the state by a nonresident living or working in the state at the time of purchase;

      6.   The sale or use of taxable energy for any purpose other than as a fuel or energy; and

      7.   The sale of taxable energy for use outside the boundaries of the city.

   C.   The sale, storage, use or other consumption of taxable energy is exempt from the municipal energy sales and use tax levied by this chapter, provided:

      1.   The delivered value of the taxable energy has been subject to a municipal energy sales or use tax levied by another municipality within the state authorized by title 10, chapter 1, part 3 of the Utah Code Annotated;

      2.   The city is paid the difference between the tax paid to the other municipality and the tax that would otherwise be due under this chapter, if the tax due under this chapter exceeds the tax paid to the other municipality. (Amended during 1998 codification: Ord. 98-08 § 2: Ord. 97-11 § 2: prior code § 6-304)

   A.   This chapter shall not alter any existing franchise agreements between the city and energy suppliers.

   B.   There is a credit against the tax due from any consumer in the amount of a contractual franchise fee paid if:

      1.   The energy supplier pays the contractual franchise fee to the city pursuant to a franchise agreement in effect on July 1, 1997;

      2.   The contractual franchise fee is passed through by the energy supplier to a consumer as a separately itemized charge; and

      3.   The energy supplier has accepted the franchise. (Ord. 97-11 § 2: prior code § 6-305)

   A.   On or before the effective date of this chapter, the city shall contract with the state tax commission to perform all functions incident to the administration and collection of the municipal energy sales and use tax, in accordance with this chapter. The mayor is authorized to enter any agreements with the state tax commission that may be necessary to the continued administration and operation of the municipal energy sales and use tax ordinance enacted by this chapter.

   B.   An energy supplier shall pay the municipal energy sales and use tax revenues collected from consumers directly to the city monthly if:

      1.   The city is the energy supplier; or

      2.   a. The energy supplier estimates that the municipal energy sales and use tax collected annually from its Utah consumers equals one million dollars ($1,000,000.00) or more; and

         b.   The energy supplier collects the municipal energy sales and use tax.

   C.   An energy supplier paying the municipal energy sales and use tax directly to the city may deduct any contractual franchise fees collected by the energy supplier qualifying as a credit and remit the net tax less any amount the energy supplier qualifying as credit and remit the net tax less any amount the energy supplier retains as authorized by section 10-1-307(4), Utah Code Annotated. (Ord. 97-11 § 2: prior code § 6-306)

   A.   1. Except as herein provided, and except insofar as they are inconsistent with the provisions of title 10, chapter 1, part 3, municipal energy sales and use tax act, as well as this chapter, all of the provisions of part 1, chapter 12, title 59 of the Utah Code Annotated 1953, as amended, and if force and effect on the effective date of this chapter, insofar as they relate to sales and use taxes, excepting sections 59-12-101 and 59-12-119 thereof, and excepting for the amount of the sales and use taxes levied therein, are adopted and made a part of this chapter as if fully set forth herein.

      2.   Wherever, and to the extent that in part 1, chapter 12, title 59, Utah Code Annotated 1953, as amended, the state of Utah is named or referred to as the "taxing agency", the name of the city of Santa Clara shall be substituted, insofar as is necessary for the purposes of that part, as well as part 3, chapter 1, title 10, Utah Code Annotated 1953, as amended. Nothing in this subsection shall be deemed to require substitution of the name "city of Santa Clara" for the word "state" when that word is used as part of the title of the state tax commission, or of the constitution of Utah, nor shall the name of the city of Santa Clara be substituted for that of the state in any section when the result of such a substitution would require action to be taken by or against the city of Santa Clara or any agency thereof, rather than by or against the state tax commission in performing the functions incident to the administration or operation of this chapter.

      3.   Any amendments made to part 1, chapter 12, title 59, Utah Code Annotated 1953, as amended, which would be applicable to the city of Santa Clara for the purposes of carrying out this chapter are incorporated herein by reference and shall be effective upon the date that they are effective as a Utah statute. (Ord. 97-11 § 2: prior code § 6-307)

No additional license to collect or report the municipal energy sales and use tax levied by this chapter is required, provided the energy supplier collecting the tax has a license under section 59-12-106, Utah Code Annotated. (Ord. 97-11 § 2: prior code § 6-308)

The purpose of this chapter is to levy a seven-eighths (7/8) of one percent (1%) sales and use tax in compliance with the provisions of the uniform local sales and use tax law, chapter 9 of title 11, Utah Code Annotated, 1953, and in compliance with the applicable provisions of chapters 15 and 16 of title 59, Utah Code Annotated, 1953. (Prior code § 6-201)

The existing contract between the city and the state tax commission, which provides that the commission will perform all functions incident to the administration and operation of the sales and use tax ordinance of this city, is declared to be in full force and effect. (Prior code § 6-202)

   A.   Levy Of Tax: There is levied a tax upon every retail sale of tangible personal property, services, and meals made within the city at the rate of seven-eighths (7/8) of one percent (1%).

   B.   Situs Of Levy: For the purposes of this chapter, all retail sales shall be presumed to have been consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his or her agent to an out of state destination or to a common carrier for delivery to an out of state destination. In the event a retailer has no permanent place of business in the state, or has more than one place of business, the place or places at which the retail sales are consummated shall be as determined under the rules and regulations prescribed and adopted by the state tax commission. Public utilities are defined by title 54, Utah Code Annotated, 1953, shall not be obligated to determine the place or places within any county or city where public utilities services are rendered, but the place of sale or the sales tax revenues arising from such service allocable to the city shall be as determined by the state tax commission pursuant to an appropriate formula and other rules and regulations to be prescribed and adopted by it.

   C.   Application Of State Sales Tax Provisions: Except as hereinafter provided, and except insofar as otherwise inconsistent with the provisions of the uniform local sales and use tax law of Utah, all of the provisions of chapter 15, title 59, Utah Code Annotated, 1953, and in force and effect on the effective date hereof insofar as related to sales taxes, excepting sections 59-15-1 and 59-15-21 thereof, and excepting for the amount of the tax levied therein, are adopted and made a part of this chapter.

   D.   Substitution Of City For State: Whenever, and to the extent that chapter 15 of title 59, Utah Code Annotated, 1953, the state of Utah is named or referred to as the taxing agency, the name of this city shall be substituted therefor. Nothing in this subsection shall be deemed to require substitution of the name of the city for the word "state" when that word is used as part of the title of the state tax commission, or of the constitution of Utah, nor shall the name of the city be substituted for that of the state in any section when the result of that substitution would require action to be taken by or against the city or any agency thereof, rather than by or against the state tax commission in performing the functions incidental to the administration or operations of this chapter.

   E.   Additional License Not Required: If an annual license has been issued to a retailer under section 59-15-3, Utah Code Annotated, 1953, an additional license shall not be required by reason of this section.

   F.   Exemptions: There shall be excluded from the purchase price paid or charged by which the tax is measured:

      1.   The amount of any sales or use tax imposed by the state of Utah upon a retailer or consumer;

      2.   Receipts from the sale of tangible personal property upon which a sales or use tax has become due by reason of the same transaction to any other city and any county in the state of Utah, under a sales or use tax ordinance enacted by the county or city in accordance with uniform local sales and use tax law of Utah. (Prior code § 6-203)

   A.   Levy Of Tax: An excise tax is levied on the storage, use or other consumption in this city of tangible personal property purchased from any retailer on or after the operative date of the ordinance codified in this chapter for storage, use or other consumption in the city at the rate of seven-eighths of one percent of the sales price of the property.

   B.   Application Of State Use Tax Provisions: Except as hereinafter provided, and except insofar as inconsistent with the provisions of the uniform local sales and use tax law of Utah, all of the provisions of chapter 15, title 59, Utah Code Annotated 1953, and in force and effect on the effective date hereof, applicable to use taxes, excepting provisions of sections 59-16-1 and 59-16-25 thereof, and excepting for the amount of the tax levied therein, are adopted and made a part of this section.

   C.   Substitution Of City For State: Wherever and to the extent that in chapter 16 of title 59, Utah Code Annotated 1953, the state of Utah is named or referred to as the taxing agency, the name of the city shall be substituted therefor. Nothing in this subsection shall be deemed to require the substitution of the name of this city for the word "state" when that word is used as part of the title of the state tax commission, or the constitution of Utah, nor shall the name of the city be substituted for that of the state in any section when the results of that substitution would require action to be taken by or against the city or any agency thereof, rather than by or against the state tax commission in performing the functions incidental to the administration or operation of this chapter.

   D.   Exemptions: There shall be exempt from the tax due under this section:

      1.   The amount of any sales or use tax imposed by the state of Utah upon a retailer or consumer;

      2.   The storage, use, or other consumption of tangible personal property, the gross receipts from the sales of or the cost of which has been subject to sales or use tax under a sales or use tax ordinance enacted in accordance with the uniform local sales and use tax law of Utah by any other city and any county of the state of Utah. (Prior code § 6-204)

   A.   There is levied a tax on all sales and uses described in subsection 59-12-103(1), Utah Code Annotated, as the same may be amended from time to time, subject to the exceptions provided for in section 59-12-104, Utah Code Annotated, as amended from time to time.

   B.   Commencing upon the effective date of the ordinance codified in this section, the tax imposed by this section shall be collected by the Utah state tax commission (the "commission"). The commission shall transmit to the city by electronic funds transfer the revenues generated by the tax imposed by this section.

   C.   The tax imposed by this section shall be used by the city for the construction and maintenance of certain highways under the city's jurisdiction.

   D.   The effective date for the tax shall be January 1, 1999. (Ord. 98-30)

   A.   There is levied a one percent (1%) municipality transient room tax on all public accommodations as outlined in 59-12-351 and 59-12-352, Utah Code Annotated, as the same may be amended from time to time. The tax is imposed on all rents charged to transients occupying public accommodations for less than thirty (30) consecutive days.

   B.   The tax imposed by this section shall be collected by the Utah state tax commission (commission). The commission shall transmit to the city by electronic funds transfer the revenues generated by the tax imposed by this section.

   C.   The tax imposed by this section shall be used for general governmental purposes. (Ord. 2002-05 § 2)

   A.   In addition to any other tax authorized by the laws of the state of Utah and/or of this municipality, there is hereby established, approved, and levied a sales and use tax upon the retail sales, as defined and included in Utah Code Annotated subsection 59-12-103(1) and as restricted in Utah Code Annotated subsection 59-12-1001(1)(b), as amended, of three-tenths of one percent (0.30%), the same to be used in connection with the financing of public transportation for the city of Santa Clara, Utah.

   B.   This section shall become effective on January 1, 2008. (Ord. 2007-30 §§ 2, 3)

As used in this chapter:

   COMMISSION: The state tax commission.

   CUSTOMER: A. Subject to subsections B and C of this definition, "customer" means the person who is obligated under a contract with a telecommunications provider to pay for telecommunications service received under the contract.

   B.   For purposes of this chapter, "customer" means:

      1.   The person who is obligated under a contract with a telecommunications provider to pay for telecommunications service received under the contract; or

      2.   If the end user is not the person described in subsection B1 of this definition, the end user of telecommunications service.

   C.   "Customer" does not include a reseller:

      1.   Of telecommunications service; or

      2.   For mobile telecommunications service, of a serving carrier under an agreement to serve the customer outside the telecommunications provider's licensed service area.

   END USER: A. The person who uses a telecommunications service.

   B.   For purposes of telecommunications service provided to a person who is not an individual, "end user" means the individual who uses the telecommunications service on behalf of the person who is provided the telecommunications service.

   GROSS RECEIPTS ATTRIBUTED TO THE MUNICIPALITY: Those gross receipts from a transaction for telecommunications services that is located within the municipality for the purposes of sales and use taxes under Utah Code title 59, chapter 12, sales and use tax act and determined in accordance with Utah code section 59-12-207.

   GROSS RECEIPTS FROM TELECOMMUNICATIONS SERVICE: The revenue that a telecommunications provider receives for telecommunications service rendered except for amounts collected or paid as:

   A.   A tax, fee or charge:

      1.   Imposed by a governmental entity;

      2.   Separately identified as a tax, fee or charge in the transaction with the customer for the telecommunications service; and

      3.   Imposed only on a telecommunications provider;

   B.   Sales and use taxes collected by the telecommunications provider from a customer under title 59, chapter 12, sales and use tax act; or

   C.   Interest, a fee or a charge that is charged by a telecommunications provider on a customer for failure to pay for telecommunications service when payment is due.

   MOBILE TELECOMMUNICATIONS SERVICE: As defined in the mobile telecommunications sourcing act, 4 USC section 124.

   MUNICIPALITY: Santa Clara City.

   PLACE OF PRIMARY USE: A. For telecommunications service other than mobile telecommunications service, means the street address representative of where the customer's use of the telecommunications service primarily occurs, which shall be:

      1.   The residential street address of the customer; or

      2.   The primary business street address of the customer; or

   B.   For mobile telecommunications service, is as defined in the mobile telecommunications sourcing act, 4 USC section 124.

   SERVICE ADDRESS: Notwithstanding where a call is billed or paid, "service address" means:

   A.   If the location described in this subsection A is known, the location of the telecommunications equipment:

      1.   To which a call is charged; and

      2.   From which the call originates or terminates;

   B.   If the location described in subsection A of this definition is not known but the location described in this subsection B is known, the location of the origination point of the signal of the telecommunications service first identified by:

      1.   The telecommunications system of the telecommunications provider; or

      2.   If the system used to transport the signal is not a system of the telecommunications provider, information received by the telecommunications provider from its service provider; or

   C.   If the locations described in subsection A or B of this definition are not known, the location of a customer's place of primary use.

   TELECOMMUNICATIONS PROVIDER: A. Subject to subsections B and C of this definition a person that:

      1.   Owns, controls, operates or manages a telecommunications service; or

      2.   Engages in an activity described in subsection A1 of this definition for the shared use with or resale to any person of the telecommunications service.

   B.   A person described in subsection A of this definition is a telecommunications provider whether or not the public service commission of Utah regulates:

      1.   That person; or

      2.   The telecommunications service that the person owns, controls, operates or manages.

   C.   "Telecommunications provider" does not include an aggregator as defined in Utah code section 54-8b-2.

   TELECOMMUNICATIONS SERVICE: A. Telephone service, as defined in Utah code section 59-12-102, other than mobile telecommunications service, that originates and terminates within the boundaries of this state; and

   B.   Mobile telecommunications service, as defined in Utah code section 59-12-102:

      1.   That originates and terminates within the boundaries of one state; and

      2.   Only to the extent permitted by the mobile telecommunications sourcing act, 4 USC section 116 et seq. (Ord. 2004-11)

There is hereby levied a municipal telecommunications license tax on the gross receipts from telecommunications service attributed to this municipality. (Ord. 2004-11)

   A.   The rate of the tax levy shall be four percent (4%) of the telecommunication provider's gross receipts from telecommunications service that are attributed to the municipality subject to the following:

   B.   If the location of a transaction is determined to be other than this municipality then the rate imposed on the gross receipts for telecommunications services shall be the lower of: 1) the rate imposed by the taxing jurisdiction in which the transaction is located or 2) the rate for nonmobile telecommunication services shall be the rate imposed by the municipality in which the customers service address is located; or for mobile telecommunications service, the rate imposed by the municipality of the customer's primary place of use. (Ord. 2004-11)

This rate of this levy shall not exceed four percent (4%) of the telecommunication provider's gross receipts from telecommunication service attributed to the municipality unless higher rate is approved by a majority vote of the voters in this municipality that vote in:

   A.   A municipal general election;

   B.   A regular general election; or

   C.   A local special election. (Ord. 2004-11)

This tax shall be levied beginning the earlier of July 1, 2004, or the first day of any calendar quarter after a seventy five (75) day period beginning on the date the commission received notice pursuant to Utah code section 10-1-403 that this municipality has enacted the ordinance codified in this chapter. (Ord. 2004-11)

This chapter is subject to the requirements of Utah code section 10-1-403. If the tax rate is changed or the tax is repealed, then the appropriate notice shall be given as provided in Utah code section 10-1-403. (Ord. 2004-11)

On or before the effective date hereof, the municipality shall enter into the uniform interlocal agreement with the commission as described in Utah code section 10-1-405 for the collection, enforcement and administration of this municipal telecommunications license tax. (Ord. 2004-11)

Any tax or fee previously enacted by this municipality under authority of Utah code section 10-1-203 or Utah code title 11, chapter 26, local taxation of utilities limitation, is hereby repealed.

Nothing in this chapter shall be interpreted to repeal any municipal ordinance or fee which provides that the municipality may recover from a telecommunications provider the management costs of the municipality caused by the activities of the telecommunications provider in the rights of way of the municipality, if the fee is imposed in accordance with Utah code section 72-7-102 and is not related to the municipality's loss of use of a highway as a result of the activities of the telecommunications provider in a right of way, or increased deterioration of a highway as a result of the activities of the telecommunications provider in a right of way, nor does the ordinance codified in this chapter limit the municipalities right to charge fees or taxes on persons that are not subject to the municipal telecommunications license tax under this chapter and locate telecommunications facilities, as defined in Utah code section 72-7-108, in this municipality. (Ord. 2004-11)

The underlying purpose of this chapter is:

   A.   To ensure that purchases and services contracted for the City are in the best interest of the public and to assure fair and equitable treatment of all persons who wish to or do conduct business with the City.

   B.   To provide for the greatest possible economy in procurement activities for the City.

   C.   To foster effective broad-based competition within the free enterprise system to ensure that the City will receive the best possible service or product at the lowest possible price.

   D.   To provide a systematic and uniform method of purchasing goods and services for the City. (Ord. 2018-10)

   BUSINESS: Means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other private legal entity.

   CHANGE ORDER: Means a written order signed by the City Manager or department head, directing the contractor to suspend work or make changes, which the appropriate clauses of the contract authorize the City Manager to order without the consent of the contractor or any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual action of the parties to the contract.

   CITY: Means Santa Clara City and all other reporting entities controlled by or financially dependent upon the City Council.

   CITY MANAGER: Means the City Manager of Santa Clara City.

   CONTRACT: Means a written agreement for the delivery or disposal of supplies, services, or construction.

   INVITATION FOR BIDS: Means all documents, whether attached or incorporated by reference, used for soliciting bids.

   PERSON: Means any business, individual, union, committee, club, other organization, or group of individuals.

   PROCUREMENT: Means buying, purchasing, renting, leasing, leasing with an option to purchase, or otherwise acquiring any supplies, services, or construction.

   PROFESSIONAL SERVICES CONTRACT: Means a contract for services performed by an independent contractor in a professional capacity who produces a service predominantly of an intangible nature. These include, but are not limited to, the services of an attorney, physician, engineer, accountant, architectural consultant, dentist, artist, appraiser or photographer.

   PUBLIC UTILITIES EQUIPMENT AND SUPPLIES: Means equipment and materials purchased by the Public Works Department or Parks Department that are used in the regular course of supplying public utilities or park and trail amenities, and includes but is not limited to such items as piping, irrigation equipment, meters, conduit, terminations, transformers, cable, wire, hoses, pad mounted equipment, and general construction materials. "Public utilities equipment and supplies" does not include any purchase that includes, in whole or in part, labor (not including freight or delivery), services, vehicles or machinery.

   PUBLIC WORKS PROJECT: Means the construction of a street, road, curb and gutter, sidewalk, power line or electrical generation or transmission facility; a public park, trail, or other recreational facility; a pipeline, culvert, dam, canal, or other system or facility for water, sewage, stormwater, or flood control; or any other public infrastructure, system, or improvement constructed, owned, operated, or maintained by the City.

   PURCHASE: Means the acquisition of goods (supplies, equipment, etc.) in a single transaction such that payment is made prior to receiving or upon receipt of the goods.

   PURCHASE DESCRIPTION: Means the words used in a solicitation to describe the supplies or services to be acquired, and includes specifications attached to or made a part of the solicitation.

   REQUEST FOR PROPOSALS: Means all documents, whether attached or incorporated by reference, used for soliciting proposals.

   SEALED BIDS: Means written proposals from persons or entities offering to contract with or to sell to the City which are received in sealed envelopes to be opened after the deadline for receipt of bids as defined in an invitation to bid.

   SOLE SOURCE: Means goods or service for which there is only one source for the procurement item. Circumstances under which there is only one source for a procurement item may include: a) where the most important consideration in obtaining a procurement item is the compatibility of equipment, technology, software, accessories, replacement parts, or service; b) where a procurement item is needed for trial use or testing; c) where transitional costs are unreasonable or cost prohibitive; or d) where reasonably equivalent goods or services are not available from any other source. (Ord. 2018-10)

   A.   All City purchases and contracts for goods and services shall be subject to this chapter unless specifically exempted.

   B.   No contract or purchase shall be so arranged, fragmented or divided with the purpose or intent to circumvent this chapter.

   C.   No purchase shall be contracted for, or made, unless sufficient funds have been budgeted in the years in which the funds are to be expended.

   D.   Reasonable attempts shall be made to publicize anticipated purchases or contracts to known vendors, contractors and suppliers.

   E.   When it is advantageous to the City, annual or other recurring contracts for services and supplies regularly purchased should be approved.

   F.   All purchases and contracts must be approved by the City Manager unless otherwise specified in this chapter.

   G.   All contracts for services shall be approved as to form by the City Attorney. (Ord. 2018-10)

The City Manager or a person designated by the City Manager shall be responsible for the following:

   A.   Ensure that all purchases for services comply with this chapter.

   B.   Review and approve all purchases of the City.

   C.   Establish necessary additional procedures for the efficient and economical management of the contracting and purchasing functions authorized by this chapter. Such procedures shall be in writing and on file in the City Recorder's Office as a public record.

   D.   Maintain accurate and sufficient records concerning all City purchases and contracts for services.

   E.   Maintain a list of contractors for public improvements and personal services who have made themselves known to the City and are interested in soliciting City business.

   F.   Make recommendations to the City Council concerning amendments to this chapter.

   G.   In the absence of the City Manager, the Mayor shall be designated and authorized to fulfill the duties of the City Manager with respect to any contract, purchase or payment that requires immediate action or execution. The Mayor shall promptly notify the City Manager of any actions taken by the Mayor. (Ord. 2018-10)

The following approvals are required for all purchases unless otherwise exempted in this chapter:

   A.   Any contract, purchase, purchase order, check request, or service request for nonprofessional services and supplies or building improvements in the total amount of one thousand dollars ($1,000.00) or less may be made or approved by the City Manager or department head, or an employee or Supervisor authorized by the City Manager or department head to make such purchase, purchase order, check request, or service request.

   B.   Any contract, purchase, purchase order, check request, or service request for nonprofessional services and supplies or building improvements in the total amount of more than one thousand dollars ($1,000.00) but less than five thousand dollars ($5,000.00) must be made or approved by the City Manager or department head.

   C.   Any contract, purchase, purchase order, check request, or service request for nonprofessional services and supplies or building improvements in the total amount of more than five thousand dollars ($5,000.00) but less than forty thousand dollars ($40,000.00) must be made or approved by the City Manager.

   D.   Any contract, purchase, purchase order, check request, or service request for public utilities equipment and supplies in the total amount of more than five thousand dollars ($5,000.00) but less than one hundred twenty five thousand dollars ($125,000.00) must be made or approved by both the Public Works Director or Parks Director and the City Manager.

   E.   The City Manager may establish additional policies and controls which are consistent with the approval mechanism set forth in this chapter.

   F.   The following contracts and purchases must be approved by the City Council:

      1.   Any contract and purchase in the amount of forty thousand dollars ($40,000.00) or more, or any contract or purchase for public utilities equipment and supplies in the amount of one hundred twenty five thousand dollars ($125,000.00) or more.

      2.   Any contract awarded through the formal bidding process.

      3.   Any contract, purchase or payment over ten thousand dollars ($10,000.00) which is not anticipated in the current budget and is not funded by development fees (including connection fees or impact fees) or paid for by third parties.

      4.   Accumulated "change orders" which would increase a previously approved contract by five thousand dollars ($5,000.00) or more, taking into consideration all previously approved change orders to the contract under consideration.

   G.   Credit cards issued in the City's name may be made available for use by specific City employees. Credit cards may be used for purchasing where there is some benefit to the City such as convenience, the ability to make recurring payments where required, or cash back to the City through a loyalty program. Purchases using credit cards shall be subject to all the required limitations, requirements, and approvals of this chapter. Each credit card statement shall be reviewed monthly by at least two (2) persons, which shall include at least the City Manager or City Finance Officer, and a department head, to protect against misuse or fraud. (Ord. 2018-10)

The following transactions are exempt from the competitive bidding requirements of this chapter. The City Manager shall determine whether or not a particular contract or purchase is exempt under the following criteria:

   A.   When the provisions of this chapter would prevent the City from complying with the terms and conditions of any grant, gift, or bequest that is otherwise consistent with law.

   B.   When any purchase or encumbrance is made with State or Federal funds and the applicable State or Federal laws or regulations are in conflict with this chapter to the extent that following the provisions of this chapter would jeopardize the use of those State or Federal funds, such conflicting provisions of this chapter shall not apply and the City officials making such purchases shall follow the procedure required by the State or Federal laws or regulations.

   C.   Emergency contracts which require prompt execution of the contract because of an imminent threat to the safety or welfare of the public, or public or private property; circumstances which place the City or its officers and agents in a position of serious legal liability; or circumstances which are likely to cause the City to suffer financial harm or loss, the gravity of which clearly outweighs the benefits of competitive bidding in the usual manner. The City Manager or Mayor shall notify the City Council of any emergency contract which would have normally required their approval at the next regularly scheduled City Council meeting.

   D.   Projects which are acquired, expanded, or improved under the Local Building Authority Act.

   E.   Purchases from vendors or suppliers who are a sole source of the goods or services under procurement. If any sole source procurement exceeds forty thousand dollars ($40,000.00), notice of the sole source procurement shall be published in a newspaper of general circulation in the State or a newspaper of local circulation in the area at least ten (10) days before the public meeting to approve the purchase or contract by the City Council.

   F.   Purchases from State or local surplus property agencies or entities or purchases from entities under State-awarded equipment contracts.

   G.   The selection of personal service contracts shall be based on an evaluation of the services needed, the abilities of the contractors, the uniqueness of the service and the general performance of the contractor. The lowest quote need not necessarily be the successful contractor. Usually, emphasis will be placed on quality, with cost being the deciding factor when everything else is equal. (Ord. 2018-10)

   A.   Purchases and expenditures of less than one thousand dollars ($1,000.00) shall not require bids or quotes of any type, but are otherwise subject to the general policies of this chapter. These purchases and expenditures are intended to include materials, supplies and services regularly purchased and consumed by the City such as office supplies, janitorial supplies, postage, food and beverages. Purchases shall not be artificially divided so as to constitute a purchase or expenditure under this section.

   B.   All purchases and expenditures of more than one thousand dollars ($1,000.00) but less than five thousand dollars ($5,000.00) shall require two (2) documented price quotes unless the purchase or expenditure is exempt from the competitive bidding requirement of this chapter or requires a sealed bid.

   C.   All purchases and expenditures of more than five thousand dollars ($5,000.00) shall require a minimum of three (3) documented price quotes unless the purchase or expenditure is exempt from the competitive bidding requirement of this chapter or the purchase expenditure requires a sealed bid. The City Manager may approve a purchase or expenditure without the required price quotes if the City Manager determines that there are not two (2) additional vendors or suppliers of such items.

   D.   Purchases made through the cooperative purchasing contracts administered by the State Division of Purchasing shall not require bids or quotes of any type. (Ord. 2018-10)

   A.   Invitations For Bids And Requests For Proposals: Unless specifically exempt from the competitive bidding requirements of this chapter, whenever the total price of a contract for services, supplies or building improvements is estimated to be forty thousand dollars ($40,000.00) or more, or the total price of a contract for a public works project or public utilities equipment and supplies is estimated to be one hundred twenty five thousand dollars ($125,000.00) or more, an invitation for bids or a request for proposals shall be issued prior to acquisition.

   B.   Bid Specifications: Specifications for public contracts shall not expressly or implicitly require any product by any brand name or make, nor the product of any particular manufacturer or seller, unless the product is exempt by these regulations or by the directive of City Council.

   C.   Advertising Requirements: An advertisement for bids is to be published at least twice in a newspaper of general circulation in the City, and in as many additional issues and publications as the City Manager may determine, at least five (5) days prior to the opening of bids.

   D.   Advertisement Requirements: All advertisements for bids shall state:

      1.   The date and time after which bids will not be accepted;

      2.   The date that prequalification applications must be filed, and the class or classes of work for which bidders must be prequalified if prequalification is a requirement;

      3.   The character of the work to be done or the materials or things to be purchased;

      4.   The office where the specifications for the work, material or things may be seen;

      5.   The name and title of the person designated for receipt of bids;

      6.   The type and amount of bid security if required;

      7.   The date, time and place that the bids will be publicly opened. (Ord. 2018-10)

All bids made to the City shall be:

   A.   In writing;

   B.   Filed with the City Recorder, unless specifically stated in the bid requests;

   C.   Opened publicly by the City Manager, department head or other designated person at the time designated in the advertisement and filed for public inspection;

   D.   Have the appropriate bid security attached, if required by the specifications for the project. (Ord. 2018-10)

After bids are opened, and a determination made that a contract be awarded, the award shall be made to the lowest responsible bidder. "Lowest responsible bidder" shall mean the lowest bidder who has substantially complied with all prescribed requirements, has submitted the bid in good faith, has a history of fully performing work at the bid price, and who has not been disqualified as set forth herein.

The successful bidder shall promptly execute a formal contract and, if required, deliver a performance and payment bond to the City in a sum equal to the contract price, together with proof of appropriate insurance. Upon execution of the contract, bond, and insurance, bid security shall be returned. Failure to execute the contract, bond, or insurance shall be cause to forfeit the bid security. (Ord. 2018-10)

The City Manager or the City Council may reject any bid not in compliance with all prescribed requirements, and reject all bids if rejection of all bids is determined to be in the best interest of the City. (Ord. 2018-10)

The City Manager, upon investigation, may disqualify a bidder if:

   A.   The bidder does not have sufficient financial ability to perform the contract;

   B.   The bidder does not have equipment available to perform the contract;

   C.   The bidder does not have key personnel available, of sufficient experience, to perform the contract;

   D.   The person has previously breached contractual obligations with public or private agencies; or

   E.   The bidder fails to comply with the requests of an investigation by the City Manager. (Ord. 2018-10)

The City may require prequalification of bidders.

   A.   Upon establishment of the applicant's qualifications, the City Manager or department head shall issue a qualification statement. The statement shall inform the applicant of the project for which the qualification is valid, as well as any other conditions which may be imposed on the qualification. It shall advise the applicant to notify the City Manager or department head promptly if there has been any substantial change of conditions or circumstances which would make any statement contained in the prequalification application no longer applicable or untrue.

   B.   If the City Manager or department head does not qualify an applicant, written notice to the applicant is required stating the reasons the prequalification was denied and informing the applicant of the right to appeal the decision within five (5) business days after receipt of the notice. Appeals shall be made to the City Council. The City Manager or department head may, upon discovering that a prequalified party is no longer qualified, revoke prequalification by sending notification of the revocation to the party subject to the revocation. The notice shall state the reason(s) for revocation, and that the revocation will be effective immediately. (Ord. 2018-10)

Any supplier, vendor, or contractor subject to an adverse procurement decision by the City, in violation of this chapter, may appeal that decision to the City Council.

   A.   The complainant shall promptly file a written appeal letter, with the City Recorder, within five (5) working days from the time the alleged incident occurred. The letter of appeal shall state all relevant facts of the matter and the remedy sought.

   B.   Upon receipt of the notice of appeal, the City Recorder shall forward to the City Council the appeal notice, investigation of the matter and any other relevant information.

   C.   The City Council shall conduct a hearing on the matter and provide the complainant an opportunity to be heard. A written decision shall be sent to the complainant. (Ord. 2018-10)

The City's Finance Director will be responsible for establishing a system and process for the accurate and timely processing of all disbursements of City funds with emphasis on taking advantage of discounts when available and avoidance of late charges. (Ord. 2018-10)

   A.   An invitation for bids, a request for proposals, or other solicitation may be canceled, or any or all bids or proposals may be rejected, in whole or in part, as may be specified in the solicitation, when it is in the best interest of the City; the reasons for cancellation or rejection shall be made part of the contract file.

   B.   Bids, proposals, and contracts which create a conflict of interest under the Municipal Officers' and Employees' Ethics Act shall be rejected unless a legally required conflict disclosure has been made by the official or employee subject to the conflict. (Ord. 2018-10)

Subject to the limitations of this section, any type of contract which will promote the best interests of the City may be used; provided, that the use of a cost-plus-a-percentage-of-cost profit contract is prohibited unless specifically approved by the City Council under special circumstances which clearly justify the use of such contracts because the scope of work or the nature of the work is to be closely supervised by the City and the City Council so finds in writing. A cost-reimbursement contract may be used only when a determination is made in writing that such contract is likely to be less costly to the City than any other type or that it is impracticable to obtain the supplies, services, or construction required except under such a contract. (Ord. 2018-10)

All contracts for work entered into by the City shall, whenever practicable, contain clauses permitting or requiring the following:

   A.   The unilateral right of the City to order, in writing, changes in the work within the scope of the contract and changes in the time of performance of the contract that do not alter the scope of the contract work.

   B.   Variations occurring between estimated quantities of work in a contract and actual quantities.

   C.   Suspension of work ordered by the City.

   D.   Requirements for performance bonds and labor and material payment bonds as required by law for construction projects.

   E.   Other provisions required for compliance with Federal or State law.

All contract specifications shall seek to promote overall economy and best use for the purposes intended and encourage competition in satisfying the needs of the City and shall not be unduly restrictive. Where practical and reasonable, and within the scope of this chapter, Utah products shall be given preference as required by Utah law. (Ord. 2018-10)

The decision of the City Council with respect to any appeal shall be the final action of the City with respect to that appeal. (Ord. 2018-10)

No person involved in making procurement decisions may have personal investments or derive any income from any business entity which may create a conflict between their private interests and their public duties. In the event of a conflict, the conflicted person shall recuse themselves from the particular procurement decision or decisions creating the conflict by notifying the City Manager (or, in the event the City Manager is the conflicted party, by notifying the Mayor) of the conflict, and shall not participate in that particular decision or decisions. (Ord. 2018-10)

Except as provided below, words and phrases that are defined in the Impact Fee Act shall have the same meaning in this chapter.

   PROJECT IMPROVEMENTS: Does not mean system improvement and includes, but is not limited to, a minimum eight inch (8") culinary water line.

   SERVICE AREA: Shall mean all of the incorporated area of the City of Santa Clara, Utah.

   SYSTEM IMPROVEMENT: Shall mean those improvements outlined in the capital facilities plan, and shall except any portion that serves only the project to which the impact fee applies or are otherwise "project improvements".

   UTAH STATE IMPACT FEE ACT: Shall mean title 11, chapter 36a, Utah Code Annotated or its successor State Statute if that title and chapter is renumbered, recodified, or amended. (Ord. 2018-13)

The City Council hereby approves and adopts the Impact Fee Analysis on file with the City and the analysis reflected therein. The Water Impact Fee Facilities Plan, Impact Fee Analysis, dated June 2018, are incorporated herein by reference as though fully set forth herein. Based on the City Council's approval and adoption of the Water Impact Fee Facilities Plan and Impact Fee Analysis, the City Council imposes a requirement that developers install project improvements as a condition to connection to the City of Santa Clara's current or future water system and delivery of water services from the City of Santa Clara. Based on its approval and adoption of the Water Impact Fee Facilities Plan, Impact Fee Analysis, the City Council hereby imposes the impact fees specified herein and enacts this chapter to require payment of the impact fees specified herein as a condition to connection to the City of Santa Clara's current or future water system and delivery of water service from the City of Santa Clara. (Ord. 2018-13)

   A.   Impact Fees: The impact fees imposed by this chapter are facilities impact fees (generally consisting of storage, distribution and treatment), payable in cash, to fund future facilities and improvements. The impact fees shall be calculated as set forth below.

   B.   Developer Credits/Developer Reimbursements: A developer, including a school district or charter school, may be allowed a credit against or proportionate reimbursement of impact fees if the developer dedicates land for a system improvement, builds and dedicates some or all of a system improvement, or dedicates a public facility that the City of Santa Clara and the developer agree will reduce the need for a system improvement. A credit against impact fees shall be granted for any dedication of land for, improvement to, or new construction of, any system improvements provided by the developer if the facilities are system improvements, or are dedicated to the public and offset the need for an identified system improvement.

   C.   Impact Fees Accounting: The City of Santa Clara shall establish a separate interest-bearing ledger account for the cash impact fees collected pursuant to this chapter. Interest earned on such account shall be allocated to that account. Impact fees collected prior to the effective date of this chapter need not meet the requirements of this section.

      1.   Reporting: At the end of each fiscal year, the City of Santa Clara shall prepare a report on such account generally showing the source and amount of all monies collected, earned and received by the fund or account and each expenditure from the fund or account. The report shall also identify impact fee funds by the year in which they were received, the project from which the funds were collected, the capital projects for which the funds were budgeted and the projected schedule for expenditure and be provided in a format approved by the State auditor and certified by the City of Santa Clara City Manager.

      2.   Impact Fee Expenditures: The City of Santa Clara may expend cash impact fees covered by this chapter only for systems improvement that are: a) public facilities identified in the Capital Facilities Plan; and b) of the specific public facilities type for which the fee was collected.

      3.   Time Of Expenditure: Cash impact fees collected pursuant to this chapter are to be expended, dedicated or encumbered for a permissible use within six (6) years of receipt by the City of Santa Clara, unless the City Council directs otherwise. For purposes of this calculation, the first funds received shall be deemed to be the first funds expended.

      4.   Extension Of Time: The City of Santa Clara may hold previously dedicated or unencumbered fees for longer than six (6) years if it identifies in writing, before the expiration of the six (6) year period: a) an extraordinary and compelling reason why the fees should be held longer than six (6) years; and b) an absolute date by which the fees will be expended.

   D.   Refunds: The City of Santa Clara shall refund any impact fee paid by a developer, plus interest actually earned when: 1) the developer does not proceed with the building activity and files a written request for a refund; 2) the fees have not been spent or encumbered; 3) the developer has contributed in excess of its proportional costs; and 4) no impact has resulted.

   E.   Additional Fees And Costs: The impact fees authorized hereby are separate from and in addition to user fees and other charges lawfully imposed by the City of Santa Clara, such as engineering and inspection fees, building permit fees, review fees and other fees and costs that may not be included as itemized component parts of the impact fee.

   F.   Fees Effective At Time Of Payment: Unless the City of Santa Clara is otherwise bound by a contractual requirement, the impact fee shall be determined from the impact fee schedule in effect at the time of payment in accordance with the provision of section 3.24.040 of this chapter. (Ord. 2018-13)

Impact fees are hereby imposed as a condition of the issuance of a building/development permit by the City of Santa Clara for any development activity which creates additional demand and need for public facilities or makes demands on the water supply in the City of Santa Clara's system. The fees imposed are as follows:

   IMPACT FEE BY METER SIZE

 

(Ord. 2018-13)

   A.   Waiver For Public Purpose: The City Council may, on a project by project basis, authorize exceptions or adjustments to the then impact fee rate structure for those projects the City Council determines to be of such benefit to the community as a whole to justify the exception or adjustment. Such projects may include low income housing.

   B.   Adjustments: The City Council may adjust impact fees imposed pursuant to this chapter as necessary in order to respond to unusual circumstances in specific areas, ensure that impact fees are imposed fairly, permit the adjustments of the amount of the impact fees based upon studies and data submitted by an applicant in order to ensure that the impact fee represents the proportionate share of the cost of providing such public facilities and water which are reasonably related to and necessary in order to provide the services in question to anticipate future growth and development activities. The City Council may also adjust impact fees to respond to a request for a prompt and individualized impact fee review for the development activity of an agency of the State of Utah, a school district, or charter school. (Ord. 2018-13)

   A.   Application: The appeal procedure applies both to challenges to the legality of impact fees, to similar and related fees of the City of Santa Clara and to the interpretation and/or application of those fees.

   B.   Request For Information Concerning The Fee: Any person or entity required to pay an impact fee under this chapter may file a written request for information concerning the fee with the City of Santa Clara. The City of Santa Clara will provide the person or entity with the City of Santa Clara's written impact fee analysis and other relevant information relating to the impact fee within fourteen (14) days after receipt of the request for information.

   C.   Appeal To The City Of Santa Clara Before Payment Of The Impact Fee: Any affected or potentially affected person or entity who wishes to challenge an impact fee under this chapter prior to payment thereof may file a written request for information concerning the impact fee and proceed under the City of Santa Clara's appeal procedure.

   D.   Appeal To The City Of Santa Clara After Payment Of The Impact Fee; Statute Of Limitations For Failure To File: Any person or entity that has paid an impact fee under this chapter and wishes to challenge the fee shall file a written request for information concerning the fee after having paid the fee and proceed under the City of Santa Clara's appeal procedure. The deadlines for filing an appeal shall be as follows:

      1.   Notice: Within thirty (30) days after the person making the appeal pays the impact fee he or she may challenge whether the City of Santa Clara complied with the notice requirements of the Utah State Impact Fee Act with respect to the imposition of the impact fee; and

      2.   Procedure: Within one hundred eighty (180) days after the person making the appeal pays the impact fee he or she may challenge whether the City of Santa Clara complied with other procedural requirements of the Utah State Impact Fee Act for imposing the impact fee; and

      3.   Impact Fee: Within one year after the person making the appeal pays the impact fee he or she may challenge the impact fee.

   E.   Appeals To The City Of Santa Clara: Any developer, landowner or affected party desiring to challenge the legality of any impact fee or related fee or exaction under this chapter may appeal directly to the City Council of the City of Santa Clara by filing a written challenge with the City of Santa Clara before the deadlines provided in subsection D of this section.

      1.   Hearing: An informal hearing will be held not sooner than five (5) days nor more than twenty five (25) days after the written appeal to the City of Santa Clara is filed.

      2.   Decision: After the conclusion of the informal hearing, the City Council shall affirm, reverse or take action with respect to the challenge or appeal as the City Council deems appropriate. The decision of the City Council will be issued within thirty (30) days after the date the written challenge was filed. In light of the statutorily mandated time restriction, the City of Santa Clara shall not be required to provide more than three (3) working days' prior notice of the time, date and location of the informal hearing and the inconvenience of the hearing to the challenging party shall not serve as a basis of appeal of the City of Santa Clara's final determination.

   F.   Denial Due To Passage Of Time: Should the City of Santa Clara, for any reason, fail to issue a final decision on a written challenge to an impact fee, its calculation or application, within thirty (30) days after the filing of that challenge with the City of Santa Clara, the challenge shall be deemed to have been denied.

   G.   Judicial Review: Nothing in this chapter shall be interpreted to alter the statutory deadlines before which an action to challenge an impact fee must be initiated in the District Court. After having been served with a copy of the pleadings initiating a court review, the City of Santa Clara shall submit to the court the record of the proceedings before the City of Santa Clara, including minutes, and if available, a true and correct transcript of any proceedings. (Ord. 2018-13)