Refunds of system development charges shall be made only in the following instances and in the following manner:
(a) Upon application to the Director by the feepayer, the City shall refund the WWTP system development charge paid, if capacity is available and service is denied.
(b) (1) Upon application to the Director by the feepayer, the City shall refund the WWTP system development charge paid and not expended or encumbered if the City, after collecting the fee when service is not available, has neither encumbered the fee nor commenced construction within six years from the date the WWTP system development charge was paid. In determining whether system development charges have been expended or encumbered, fees shall be considered encumbered on a first-in, first-out (FIFO) basis.
(2) When the right to a refund exists due to a failure to encumber system development charges within six years of payment, the City shall provide written notice of entitlement to a refund to the feepayer. The City shall also publish such notice within 30 days after the expiration of the six year period from the system development charge payment date. Such published notice shall contain the heading "Notice of Entitlement to System Development Charge Refund."
(c) A refund application shall be made to the Director within one year from the date such refund becomes payable under subdivisions (a) and (b) of this Section 1157.11 or within one year from the date of publication of the Notice of Entitlement of a Refund under subdivision (b) of this Section 1157.11, whichever is later. Any refund request not made within said time period shall be deemed waived.
(d) The City may authorize refund of all or a portion of a system development charge which has been paid, if:
(1) The feepayer modifies or otherwise alters a development activity or project resulting in a decrease in the amount of the fee due; or
(2) The City modifies or otherwise alters the capital improvement project to which a system development charge relates, which results in both a decrease in the cost of the project and the amount of the system development charge as calculated pursuant to this chapter.
(3) Should fund balances remain in the WWTP Capital Improvements Fund or the WWTP Debt Stabilization Funds or both after all financial obligations of the Funds have been met (including principal and interest due on any loans from other City funds), then the City shall refund such remaining balances. Refunds shall be made on a last-in, first-out basis. The City shall provide written notice of entitlement to a refund to the feepayer. The City shall publish such notice within 60 days of the last and final payment of all financial obligations relating to the wastewater treatment plant expansion. Such published notice shall contain the heading "Notice of Entitlement to WWTP System Development Charge Refund"."
(e) The City may authorize the refund of a system development charge which has been paid if the site development permit or Zoning Permit issued for the project to which the system development charge applies has lapsed due to the developer's failure to begin construction.
(f) A refund application shall include information and documentation sufficient to permit the Director to determine whether the refund claimed is proper and, if so, the amount of such refund.
(g) A refund shall include a pro rata portion of interest annually earned on the unused or excess system development charge paid.
(h) All refunds shall be paid within 60 days after the Director's written decision finding that such refund is due.
(Ord. 2635. Passed 1-13-11.)