A. It is the intent of the city that, whenever practicable, planned transportation facilities be constructed, and related right of way be dedicated, by developers in conjunction with land development projects, and that such construction and dedication be required as conditions of the development permit related to such projects pursuant to and consistent with the authority of various provisions the Municipal Code and statutes of the State of California. It is also the intent of the city that a portion of the cost for such construction and dedication of the planned transportation facilities and related right of way be reimbursed by the city, and that such reimbursements be among the assumptions made by the nexus study in establishing the fee schedule to be adopted pursuant to this chapter. Consistent with this intent, developers who are required to construct planned transportation facilities and make right-of-way dedications are entitled to reimbursement for all such facilities, except that a developer shall not be reimbursed for the cost of site related improvements as defined in this chapter or for the value of right of way associated with site related improvements.
B. The city engineer is authorized to create and maintain a reimbursement policy manual setting forth the manner in which this section shall be implemented. Such reimbursement policy manual shall be consistent with the provisions of this section and with the assumptions and methodologies contained in the nexus study.
C. As may be more fully described in the reimbursement policy manual, reimbursements for planned transportation facilities shall be made on the basis of unit costs and right-of-way values as established by the schedules of costs and land values as contained in the nexus study and that serve as the basis for that study, as adjusted from time to time pursuant to this chapter, and shall not be made based on actual construction or land costs or market values.
D. No reimbursement shall be made except as provided in a written reimbursement agreement between the city and the developer entered into prior to commencement of construction of the subject planned transportation facilities. Among other things, such agreements shall provide for the following:
1. The reimbursement agreement shall set forth the agreed to unit costs and right of way values.
2. The reimbursement agreement shall set forth the timing and manner of reimbursement payments.
3. The reimbursement agreement shall distinguish planned transportation improvements that are deemed to be supplemental improvements.
4. Reimbursement for all non-supplemental improvements shall be made, to the greatest extent possible, in the form of credits against transportation impact fees payable by the subject development, as estimated at the time of entering into the reimbursement agreement. Credits shall not be used to reimburse for supplemental improvements unless with the consent of the developer.
5. Reimbursements shall be made in the form of cash payments only to the extent that the total amount of reimbursement exceeds the total amount of credits available to the subject development, or to the extent necessary to reimburse for supplemental improvements. Cash reimbursement, if necessary, shall be paid as funds are available in the Planned Transportation Fee Fund as maintained by the city, and if at any time, more than one (1) developer is owed cash reimbursement, payment shall be to those owed on a first-in-time priority basis, based on the date of the Notice of Completion of the improvements identified in the reimbursement agreement; provided, however, that cash reimbursement obligations associated with supplemental improvements shall be made within two (2) years from the Notice of Completion of said improvements, and cash reimbursement obligations associated with non-supplemental improvements shall be paid in full within ten (10) years from the Notice of Completion of said improvements. Cash reimbursement rights may be converted to fee credits, if available, at the option of the developer.
6. The reimbursement agreement shall require that the developer apply for reimbursement pursuant to the agreement no later than four (4) years after: (1) the construction of the public improvements, including planned transportation facilities, for a land development project are completed and accepted by the city or (2) the effective date of this ordinance; whichever date is later. The developer shall waive the right of reimbursement for construction costs payable under this section when the reimbursement is not applied for within said four (4)-year limitation.
E. Reimbursement payments otherwise due to the developer will not be made until all of the following requirements are met:
1. Construction of the public improvements, including planned transportation facilities, for the land development project are completed and accepted by the city; and
2. A reimbursement request is submitted to the city per the requirements of the city's reimbursement policy manual; and
3. Thirty (30) days have passed since acceptance by the city to ensure that no claims of nonpayment have been filed with the city by any contractor or subcontractor; and
4. Any further requirements of the city's reimbursement policy manual have been met.
F. No interest shall be paid by the city on any outstanding reimbursement amount set forth in a reimbursement agreement, except that the reimbursement agreement shall stipulate the city pay interest for supplemental improvements equal to the Local Agency Investment Fund interest rate at the time the reimbursement agreement is executed.
G. If the city enters into a reimbursement agreement authorized by this section, the agreement shall provide that:
1. The general fund of the city is not liable for payment of any obligations arising from the agreement;
2. The credit of the city is pledged for the payment of any obligations arising from the agreement solely from dedicated transportation funds;
3. The landowner shall not compel the exercise of the city taxing power or the forfeiture of any of its property to satisfy any obligations arising from the agreement; and
4. The obligation arising from the agreement is a debt of the city, payable from income, receipts, or revenues from the transportation impact fee trust fund and other dedicated transportation funds.
H. At a minimum, the city shall devote twenty-five percent (25%) of the collected annual transportation impact fee revenue to satisfy developer reimbursements. (Ord. 2017-01 (part), 2017: Ord. 2013-01, 2013: Ord. 2008-14, 2008)