ORD 04-20 OMC Ch 3.40 Development Categories RE Park Facilities FeesORDINANCE NO. 04-20
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF ORANGE AMENDING CHAPTER
3.40 OF THE ORANGE MUNICIPAL CODE TO
UPDATE THE DEVELOPMENT CATEGORIES
SUBJECT TO PARK FACILITIES FEES AND
MODIFY THE YEARLY ADNSTMENT
METHOD FOR PARK FACILITIES FEES.
APPLICANT: CITY OF ORANGE
WHEREAS, the Mitigation Fee Act requires that Pazk Facilities fees assessed on new
development projects in the CiTy aze proportionate to the burden on park and recreation facilities
necessary to serve them and beaz a rational relationship to the reasonable cost of providing pazk
and recreation facilities occasioned by the new development; and
WHEREAS, the Pazk Facilities fees were last updated by the City in 2003; and
WHEREAS, the CiTy commissioned a comprehensive study of its development impact
fees for park and recreation facilities that evaluated the impact on pazk and recreation services by
residential development and established the level of fees reasonably needed to provide pazk and
recreation facilities as required by new development.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I:
Chapter 3.40, "Park Facilities Fees," of the Orange Municipal Code is hereby amended in
its entirety to read as follows:
3.40.010 -Findings and Purpose.
The City Council of the City of Orange fmds and declares that all recitals set forth in the
preamble of the ordinance codified in this chapter aze true and such recitals aze incorporated in
this chapter and set forth as findings of the City Council; and the City Council does further find
and declaze as follows:
A. The State of California, through the enactment of Section 66000 et seq. of the
Government Code of the State of Califomia, also known as the Mitigation Fee Act, has
determined the nexus that must be established in the enactment of development impact
fees.
B. The imposition of development impact fees is one of the preferred methods of ensuring
that development beazs a proportionate shaze of the cost of public facilities and services
necessary to accommodate such development. This must be done in order to promote and
protect the public health, safety and welfaze.
C. This chapter recognizes that new residential development projects within the City will
result in additional growth and that such growth will place additional burdens on pazk
and recreational facilities, infrastructure and services, necessitating the acquisition of
land and construction of park and recreational facilities and expansion of services and
infrastructure in order to meet and accommodate new residential development projects.
D. New residential development projects should beaz a proportionate financial burden in
the construction and improvement of park and recreational facilities necessary to serve
them.
E. The cost of providing park and recreational facilities occasioned by new residential
development projects exceeds the revenue generated by fees exacted from the
residential development projects.
F. In adopting fees authorized by this chapter, the City shall establish the fees based upon
the costs generated through the need for new pazk and recreational facilities and other
capital acquisition costs required, incrementally, by new residential development.
G. The fees established by this chapter shall not exceed the reasonable cost of providing
park and recreational facilities occasioned by new residential development projects.
H. The fees established by this chapter shall beaz a rational relationship to the reasonable
cost of providing pazk and recreational facilities occasioned by new residential
development projects.
I.The fees established by this chapter ue consistent with the goals and objectives of the
City's general plan and aze designed to mitigate the impacts caused by new residential
development referenced in this chapter throughout the City. Development impact fees
are necessary in order to finance the required park and recreational facilities and to pay
for new residential development's fair shaze of their costs.
J.Imposition of fees to finance pazk and recreational facilities required by new residential
development is necessary in order to avoid adversely impacting existing pazk and
recreational facilities and services.
3.40.020 - Definitions.
For purposes of this chapter, unless otherwise appazent from the context, the following terms,
phrases, words, and their derivations shall have the meanings respectively ascribed to them by
this section:
A. BUILDING PERMIT means any permits required for construction, such as electrical
and plumbing permits, moving permits, and the like.
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B. DEVELOPER means the legal or beneficial owner or owners of a lot or of any land
included in a proposed residential development, including the holder of an option or
contract to purchase or other persons having an enforceable proprietary interest in such
land, who is legally responsible for payment of a pazk facilities fee.
C. DORMITORY-STYLE HOUSING means student housing facilities for individual or
group accommodation owned or operated, or authorized to be acquired, constructed,
furnished, equipped and operated, by a college or university for use by students, faculty
members, or other employees of any college or university.
D. DWELLING LTNIT shall have the meaning given to that term in Section 17.04.023 of
this Code but, for the purposes of this chapter, shall also mean and include any of the
other types of housing units within the definition of the term "residential developmenY'
in this Section 3.40.020.
E. FAIR MARKET VALUE means the fair mazket value of undeveloped residential real
property as applicable for the densiTy classifications established by resolution of the
City Council for the implementation of this chapter.
F. MASTER PLAN means the City of Orange Master Plan for Park Facilities, Recreation
and Community SBrvices as adopted by the CiTy Council of the City of Orange, as the
same may be amended from time to time.
G. MINIMUM PARK STANDARDS shall have the meaning given that term in SecGon
16.60.020 of this Code.
H. PARK means a parcel or contiguous parcels of land, which provides recreational land
and facilities for the benefit and enjoyment of the residents, students and visitors of the
City.
I.PARK FACILITIES FEE means a monetary exaction, other than taaces or special
assessments, which is established by the City Council under this chapter and is chazged
by the City to an applicant in connection with approval of a residential development
project for the purpose of defraying all or a portion of the cost of public park and
recreational facilities serving the residential development project, but does not include
fees specified in Section 66477 of the California Govemment Code, Chapter 16.60 of
the Orange Municipal Code, fees for processing applications for governmental
regulatory actions or approvals, or fees collected under development agreements
adopted pursuant to Article 2.5 of Chapter 4, Division 1, Title 7 of the California
Government Code (commencing with Section 65864).
J.RECREATIONAL FACILITIES means those improvements to parks, which provide a
recreational opportunity for the user, including, but not limited to, ball fields, lighting,
swimming pools, tennis courts, picnic shelters, trails, play/tot lots, and community
buildings. These are improvements that aze above the basic minimum park standazd
requirements.
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K. RESIDENTIAL CARE FACILITY FOR THE ELDERLY means a housing
arrangement chosen voluntarily by persons sixty (60) years of age or over, or their
authorized representative, where varying levels and intensities of caze and supervision,
protective supervision, personal caze, or health-related services are provided, based
upon their varying needs, as determined in order to be admitted and to remain in the
facility. As used in this chapter, the term, residential caze facility for the elderly, shall
also mean a housing anangement chosen voluntarily by persons under sixty (60) yeazs
of age, or their authorized representative, with compatible needs who aze allowed to be
admitted or retained in a residential care facility for the elderly.
L. RESIDENTIAL DEVELOPMENT PROJECT means any project undertaken for the
purpose of developing real property with one or more dwelling units involving the
issuance of a permit for construction or expansion. The term "residential development
projecY' shall include a subdivision, condominiums, apaRment houses, dormitory-style
housing, fraternity and sorority houses, room and board facilities, mobile homes,
permits for the erection of manufactured housing or structures, and structures moved
into the City, and other residential development not a part of a subdivision for which
dedication of park land and/or the payment of fees in-lieu of dedication (or both) were
imposed and paid as a condition of subdivision approval.
3.40.030 -Park Facilities Fees.
A. A park facilities fee is established to finance the cost of pazk facilities and improvements
required by new residential development, which fee shall include an amount to recover
the cost of preparation of the study and adminisVative overhead costs, to be set as a
percentage of the pazk facilities fees which aze collected pursuant to this chapter.
B. The City Council shall, by resolution, set forth the specific amount of the park facilities
fees.
3.40.040 -Payment of Park Facilities Fees.
The payment of a park facilities fee shall be due upon the following:
A. The date of final inspection or certificate of occupancy for each unit, wluchever occurs
first. The rate at which the fee shall be chazged shall be based upon the rate that was in•
place at the time a building permit was issued for each unit.
B. Notwithstanding anything to the contrary set forth in Subsection A,above,or in any other
provision of this chapter, the pazk facilities fee shall apply to any development project
which has heretofore received a tentative map approval or other approval from the City,
where the approval of the same, assented to by the developer, has been conditioned upon
payment of the fees established as a result of the study performed by the City.
C. The timing of payment of the park facilities fees shall apply to all development projects
upon which pazk facilities fees are imposed on or after the effective date of this chapter,
unless one of the following applies:
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1.An earlier or later time for the payment of the fees is stated in a condition of
approval for a particulaz development project because:
a.The fees aze collected for improvements or facilities for which the City
has established an account, appropriated funds, and adopted a proposed
construction schedule or plan; or
b.The fees are to reimburse the City for expenditures previously made for a
public improvement, service or amenity.
2.The development project is subject to a statutory development agreement
pursuant to Government Code Section 65864) or an agreement pursuant
to Cha,pter 17.44 of this Code, which provides for the payment and/or satisfaction
of park facilities fees in a manner different than set forth in this section.
D. The CiTy may require the developer, as a condition to the issuance of a building permit,
to execute and deliver to the City a contract, in recordable form, whereby the developer
agrees to pay the park facilities fee within the time (or at the times) specified in
Subsection A of this section 3.40.040, which contract shall comply with the
requirements of Subsection (c) of Section 66007 of the Government Code of the State
of California and shall be satisfactory in form and content to the City Attorney.
3.40.050 - Automatic Annual Adjustment.
The pazk facilities fee shall be adjusted on the first day of July of each yeu to reflect the
percentage of increase or decrease in the Consumer Price Index for All Urban Consumers (CPI-
U) (Los Angeles-Long Beach-Anaheim; all items, not seasonally adjusted; 1982-1984=100
reference base)for the timeframe since the most recent increase. The adjusted fee, if any, shall be
rounded to the neazest dollaz. The pazk facilities fee will be reviewed on an annual basis to
determine if development and the corresponding park and recreational facilities improvements
are proceeding as projected.
3.40.060 - Amendment by Resolution.
Notwithstanding the automatic annual adjustment provided in Section 3.40.050, the
amount of the fees established pursuant to this chapter may be more specifically set and revised
periodically by resolution of the City Council, with this chapter being considered as enabling
and directive in this regard in accordance with the notice and public heazing procedures specified
in Section 66018 of the Government Code of the State of California and with available Federal
census data, updated cost estimates for minimum pazk standazds, updated fair mazket values for
undeveloped residential real property, substantial changes in the City's master plan, capital
improvement plan and/or general plan, or other pertinent information.
The fees refened to in Sections 3.40.030 and 3.40.050 may be revised, deleted, or
otherwise amended by resolution of the City Council.
Ordinance No. 04-20 5
3.40.070 -Disposition of Park Facilities Fees—Fund Created.
All fees collected under this chapter shall be promptly transferred for deposit into a
special fund of the City entitled "pazk facilities fund." The fund shall be used only for the
purposes stated in Section 3.40.010.
3.40.080 -Exemptions.
A. The following shall be exempted from payment of the park facilities fees established by
to this chapter:
1.Alterations, renovations or expansion of an existing dwelling unit where no
additional dwelling units aze created and the use is not changed.
2.The replacement of a destroyed or par[ially destroyed or damaged dwelling unit
with a new dwelling unit.
3. Residential care facilities for the elderly, residential caze facilities, mental
sanitariums, health sanitariums, rest homes or the like.
4. If the land on which a residential development is proposed to be located has been
previously subject to the pazk land dedication provisions of this Code that were
in effect after November 9, 1972 but prior to July 14, 2000, the requirements of
this chapter regarding the payment of a pazk facilities fee shall only apply to the
creation of additional dwelling units and not to the dwelling units existing on the
land prior to the issuance of a building permit for the proposed residential
development.
5.Residential development which is part of a subdivision for which dedication of
park land and/or the payment of fees in-lieu of dedication (or combination of
both) were imposed and paid in accordance with the provisions of Chapter
16.60 of this Code as a condition of subdivision approval.
B. All determinations regarding the exemptions provided in Subsection A above, shall be
made by the Director of Community Development.
C. In order to ensure that the imposition of fees pursuant to this chapter will not be contrary
to the public interest, or prevent the development of a public service project, the City
Council may waive all, or any portion of, the fees required by this chapter if the City
Council finds that a residential development project will serve a public purpose or
satisfy a public need and is located within a redevelopment project area, or other special
district, or involves direct City participation in the residential development project.
Moreover,the CiTy Council may,from time to time, and as the need may arise, set forth,
by resolution, specific limitations, which will apply to waivers of fees which may be
made pursuant to this section. In this regazd, this chapter shall be considered enabling
and directory.
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3.40.090 —Fee Adjustment Applications.
A. A developer of any residential development subject to the fees described in this chapter
may apply to the City Council for a reduction, adjustment or waiver of the fees, based
upon the absence of any reasonable relationship or nexus between the impacts of that
residential development and either the amount of the fees chazged or the type of
facilities to be financed. The application shall be made in writing and Filed with the CiTy
Clerk not later than (1) ten days prior to the public heazing on the development permit
application for the residential development, or(2) if no development permit is required,
at the time of the filing of the request for a building permit. The application shall state
in detail the factual basis for the claim of waiver, reduction or adjustment. The City
Council shall consider the application at the public hearing on the permit application or
at a sepazate public heazing held within sixty (60) days after the filing of the fee
adjustment application, whichever is later. The decision of the City Council shall be
final. If a reduction, adjustment or waiver is granted, any change in use within the
residential development shall invalidate the waiver, adjustment or reduction of the fee
if such change in use would render the same inappropriate. The hearing shall be noticed
and conducted in the same fashion and manner as prescribed by the laws of the City for
heazings on development permits.
B. The CiTy Council may, from time to time, and as the need may azise, set forth, by
resolution, specific limitations, which will apply to reductions, adjustments or waivers
of fees which may be made pursuant to this section. In this regazd, this chapter shall be
considered enabling and directory.
3.40.100—Credits.
A. New residential development that, through demolition or conversion, will eliminate
existing residential development is entitled to a fee credit if the existing residential
development is a lawful use under the City's zoning ordinance, including a legal
nonconforming use.
B. New residential development that will replace residential development that was partially
or totally destroyed by fire, flood, earthquake,mudslide, or other casualty or act of God,
is entitled to a fee credit if the residential development that was partially or totally
destroyed was a lawful use under the City's zoning ordinance, including a legal
nonconforming use, at the time thereof.
C. Credit for such eliminated residential development or residential development that was
partially or totally destroyed as above specified shall be calculated by the Director of
Community Development in accordance with the fee schedule set forth in the resolution
to be adopted pursuant to Section 3.40.030 and shall be applied to new residential
development on the same site.
3.40.110—Credit for Park Facilities Provided by Developers.
A. In-Lieu Fee Credits for Construction of Pazk Facilities.
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1.A developer required by the City to construct any pazk facilities (or a portion
thereo for which fees aze required by this chapter as a condition of approval of
a residential development permit may request an in-lieu credit of the pazk
facilities fees. Upon request, an in-lieu credit of fees shall be granted for park
facilities that mitigate all or a portion of the need therefor that is attributable to
and reasonably related to the given residential development.
2.Only costs proportional to the amount of the park facilities that mitigates the
need therefor attributable to and reasonably related to the residential
development shall be eligible for in-lieu credit, and then only against the fees to
which the park facilities relate.
3.The park facilities fees required by this chapter shall be reduced by the acmal
construction costs of the park facilities that relate to the pazk facilities fees, as
demonstrated by the applicant and reviewed and approved by the Director of
Community Development, all consistent with the provisions of Subsections
A)(1) and (A)(2), above. Subject to the applicable provisions of Subsection B
of this section, if the cost of the pazk facilities is greater than the required park
facilities fees, this chapter does not create an obligation on the City of Orange
to pay the applicant the excess amount.
B. Development Construction of Pazk Facilities Exceeding Needs Related to Residential
Development.
1.Whenever a developer is required, as a condition of approval for a residential
development permit, to construct any pazk facilities (or a portion thereofl for
which fees aze required by this chapter, which park facilities are determined by
the City to exceed the need therefor attributable to and reasonably related to the
given residential development, a reimbursement agreement with the developer
and a credit against the pazk facilities fees which would otherwise be charged
pursuant to this chapter on the residential development, shall be offered. The
credit shall be applied with respect to that portion of the pazk facilities which aze
attributable to and reasonably related to the need therefor caused by the
residential development,and shall be determined,administered and processed in
accordance with and subject to the provisions of this section. The amount to be
reimbursed shall be that portion of the cost of the pazk facilities which exceeds
the need therefor attributable to and reasonably related to the given residential
development. The reimbursement agreement shall contain terms and conditions
mutually agreeable to the developer and the City, and shall be approved by the
City Council.
C. Site-Related Improvements. Credit shall not be given for site-related improvements,
including, but not limited to, tr c signals, right-of-way dedications, or providing
paved access to the property, which aze specifically required by the residential
development in order to serve it and do not constitute park facilities.
Ordinance No. 04-20 8
D. Determination of Credit. The developer seeking credit and/or reimbursement for
construction of improvements or facilities or dedication of land or rights-of-way, shall
submit such documentation, including, without limitation, engineering drawings,
specifications, and construction cost estimates, and utilize such methods as may be
appropriate and acceptable to the Director of Community Development (or his/her
designee) to support the request for credit or reimbursement. The Director of
Communiry Development (or his/her designee) shall determine credit for construction
of park facilities based upon either these cost estimates or upon alternative engineering
criteria and construction wst estimates if the Director of Community Development (or
his/her designee) determines that such estimates submitted by the developer aze either
unreliable or inaccurate.The Director of Community Development(or his/her designee)
shall determine whether park facilities are eligible for credit or reimbursement.
E. Time for Making Claim for Credit. Any claim for credit must be made no later than the
application for a building permit. Any claim not so made shall be deemed waived.
F. Transferability of Credit—Council Approval. Credits shall not be transferable from one
project or development to another without the approval of the City Council.
G. Appeal of Determinations of Director of Community Development. Determinations
made by the Director of Community Development (or his/her designee) pursuant to the
provisions of this chapter may be appealed to the City Council by filing a written appeal
setting forth in detail the factual basis therefor) with the City Clerk, together with a fee
established by resolution of the City Council within ten calendar days of the
determination of the Director of Community Development (or his/her designee). The
appeal shall be considered by the City Council at a public heazing to be held, noticed
and conducted in accordance with the provisions prescribed in Section 3.40.100 for
public hearings with respect to fee adjustments. The decision of the City Council on the
appeal shall be final.
3.40.120—Controlling State Law.
The provisions of this chapter and any resolution adopted pursuant hereto shall at all
times be subject and subordinate to the provisions ofChapter 5 (commencing with Section
66000), Division 2, of Title 7 of the California Govemment Code, as the same presently exists
or may hereafrer be amended from time to time, to the extent the same aze applicable. In the
event of any conflict between the provisions ofthis chapter and state law,the latter shall control.
SECTION II:
Should any section, subsection, clause, or provision of this Ordinance for any reason be
held to be invalid or unconstitutional, such invalidiTy or unconstitutionality shall not affect the
validity or constitutionality of the remaining portions of this Ordinance; it being hereby expressly
declazed that this Ordinance, and each section, subsection, sentence, clause and phrase hereof
would have been prepazed,proposed, approved and ratified irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declazed invalid or unconstitutional.
Ordinance No. 04-20 9
SECTION III:
A smmnary of this Ordinance shall be published and a certified copy of the full text of this
Ordinance shall be posted in the Office of the City Clerk at least fifreen(15) days prior to the CiTy
Council meeting at which this Ordinance is to be adopted. A summary ofthis Ordinance shall also.
be published once within fifteen (15) days after its passage in a newspaper of general circulation
in the City of Orange. The City Clerk shall post in the Office of the City Clerk a certified copy of
the fiill text of the adopted Ordinance along with the names of those City Council members voting
for and against the Ordinance in accordance with Government Code Section 36933.
ADOPTED this l lth day of February 2020.
Mark . Murphy, Mayor, Ci of ange
ATTEST:
L
Pamela Coleman, City Clerk, City of Orange
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF ORANGE
I, PAMELA COLEMAN, City Clerk of the Ciry of Orange, California, do hereby certify
that the foregoing Ordinance was introduced at the regulaz meeting of the Ciry Council held on the
14th day of January 2020and thereafter at the regular meeting of said City Council duly held on
the l lth day of February 2020, was duly passed and adopted by the following vote, to wit:
AYES:COiJNCILMEMBERS: Alvazez, Murphy,Nichols, Monaco
NOES:COiJNCILMEMBERS: None
ABSENT: COiJNCILMEMBERS: None
ABSTAIN: COiJNCILMEMBERS: None
1'l i L/i A.11h
Pamela Coleman, City Clerk, City of Orange
Ordinance No. 04-20 10