§ 154.04 GENERAL PROVISIONS, APPLICABILITY.
   (A)   Term. This chapter, the ordinance enacting the same, and the procedures established herein shall remain in effect unless and until repealed, amended or modified by the Mayor and Council in accordance with applicable state law, city code, or city ordinances and resolutions.
   (B)   Annual review and report.
      (1)   Within 90 days of the end of each fiscal year, the City shall file with the City Clerk an unaudited annual report accounting for the collection and use of the fees for each service area and shall post the report on its website in accordance with A.R.S. § 9-463.05, Subsections N and O, as amended.
         (a)   Submission of development fee annual report and Council action. The City Manager or appropriate designee shall submit the development fee annual report to the Mayor and Council, which shall receive the annual report and which may take such actions as it deems appropriate, including, but not limited to, requesting additional data or analyses and holding public workshops and/or public hearings. Copies of the annual report shall be made available to the public on request. The annual report may contain financial information that has not been audited.
         (b)   If the city fails to file an annual report in compliance with A.R.S. § 9-463.05(D), the city shall not collect development fees until the annual report is filed.
   (C)   Biennial Audit.
      (1)   In addition to the Annual Report described in Subsection A of this Section, the City shall provide for a biennial, certified audit of the City's Land Use Assumptions, Infrastructure Improvements Plan and development impact fees.
         (a)   An audit pursuant to this Subsection shall be conducted by one or more Qualified Professionals who are not employees or officials of the City and who did not prepare the Infrastructure Improvements Plan.
         (b)   The audit shall review the collection and expenditures of development fees for each project in the plan and provide written comments describing the amount of development impact fees assessed, collected, and spent on capital facilities.
         (c)   The audit shall describe the Level of Service in each Service Area, and evaluate any inequities in implementing the Infrastructure Improvements Plan or imposing the development impact fee.
         (d)   The City shall post the findings of the audit on the City's website and shall conduct a public hearing on the audit within 60 days of the release of the audit to the public.
         (e)   For purposes of this Section a CERTIFIED AUDIT shall mean any audit authenticated by one or more of the Qualified Professionals conducting the audit pursuant to paragraph (1) of this Subsection.
   (D)   New development affected. This chapter shall apply to all new development as herein defined and as defined in the this chapter or other city code sections for particular public facilities or services.
      (1)   Exceptions to the application of development fees to new development. Unless otherwise expressly noted, the fees imposed in this chapter, except for those in effect prior to the approval of this chapter, shall not apply in the following circumstances:
         (a)   Previously applied site plan permits and/or building permits. No development fee shall be imposed on new development for which a fully completed building permit application has been submitted prior to the effective date of this chapter. If an approved site plan is required prior to obtaining a building permit, then a fully completed site plan application must also be completed prior to the effective date of this chapter in order to receive the exemption. A fully completed site plan application is defined as a submittal that meets all requirements of § 151.18 of the city's Development Code. A FULLY COMPLETED BUILDING PERMIT APPLICATION is defined as meeting the requirements of Section 106 (Construction Documents) of the 2003 International Building Code as adopted by the City Council.
         (b)   Previous payment of development fees. Subject to the requirements of § 154.05(D), no development fees for a particular public facility shall be due at a later stage of the development permit or approval process if development fees have been fully paid for such category of public facilities at an earlier stage in the development permit or approval process.
         (c)   No net increase in dwelling units. No development fee shall be imposed on any new residential development that does not add a new dwelling unit.
         (d)   No net increase in non-residential square footage. No development fee shall be imposed on any new non-residential development that does not add square footage to a currently existing facility.
         (e)   Other uses. No development fee shall be imposed on a use, development, project, structure, building, fence, sign or other activity, whether or not a building permit is required, which does not result in an increase in the demand for public facilities.
         (f)   Development subject to development agreements. No development fee shall be imposed upon development projects that are the subject of a development agreement approved and executed by the city containing provisions in express conflict with this chapter, but only to the extent of the conflict or inconsistency.
         (g)   Other development exempted by state law. No development fee shall be imposed on new development that is exempted by Arizona state law, however, the city may seek to negotiate the construction of public facilities or the provision of services, or to negotiate the payment of Development Fees with such entities. See A.R.S. § 9-500(18).
      (3)   Effect of payment of development fees on other applicable city land use, zoning, platting, subdivision or development regulations.
         (a)   The payment of development fees shall not entitle the applicant to a building permit, which shall only be issued if all other applicable land use, zoning, planning, platting, subdivision or other related requirements, standards and conditions have been met. Such other requirements, standards and conditions are independent of the requirement for payment of a development fee.
         (b)   Nothing contained in this chapter shall affect, in any manner, the permissible use of property, density/intensity of development, improvement standards or other applicable standards or requirements of the city land development regulations, which shall be operative and remain in full force and effect without limitation.
      (4)   Amendments. This chapter may be amended from time to time by the Mayor and Council; provided, however, that no such amendment shall be adopted without a written report detailing the reasons and need for the development fee revision nor without proper notice and public hearing as set forth herein and in A.R.S. § 9-463.05(C).
      (5)   Effect of imposition of development fees in a community facilities district. In calculating and imposing a development fee applicable to land in a community facilities district established under Arizona Revised Statutes, Title 48, Chapter 4, Article 6, the city shall take into account all public infrastructure provided by the district and capital costs paid by the district for necessary public services and facilities and shall not assess a portion of the development fee otherwise calculated to be due that would duplicate the infrastructure provided by the district or the costs imposed by the district on new development.
      (6)   Change in boundaries of the city. In the event of annexation of unincorporated county land by the city, new development in those areas shall be assessed the development fees in accordance with this chapter, except that the City Manager may request a review of the fees by an outside consultant, with resulting changes presented to the Mayor and City Council for their review and action.
      (7)   Time Limit. Development impact fees collected after July 1, 2012 shall be used within ten years of the date upon which they were collected for all Categories of Necessary Public Services except for Water and Wastewater Facilities. For Water Facilities or Wastewater Facilities collected after July 1, 2012, development impact fees must be used within 15 years of the date upon which they were collected.
(Ord. 2006-006, passed 3-9-06; Am. Ord. 2009-012, passed 10-22-09; Am. Ord. 2012- 003, passed 5-10-12)