Ordinance 1653ORDINANCE N0. _1.653
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF CUPERTINO AMENDING TITLE 18 OF THE
CUPERTINO MUNICIPAL CODE ENTITLED
"SUBDIVISIONS" BY ADDING THERETO A NEW
CHAPTER 14 ENTITLED "STREET FACILITY
REIMBURSEMENT CHARGES"
THE CITY COUNCIL OF THE CITY OF CUPERTINO ORDAINS
AS FOLLOWS:
SECTION I - FINDINGS: The City Council makes the
following findings provided for in Section 66001 of the
Government Code in regard t:o the street facility
reimbursement charges asse~;sed pursuant to the
provisions of Chapter 14 of` the Cupertino Municipal
Code:
1. That developers of pro~~erty located in the City are
sometimes required to install off-site street facilities
incident to or as a condition of the approval or
issuance of a final map, parcel map or conditional
certificate of compliance ~~hich, while necessary to
serve development of their property, also adjoin other
properties and reduce the cost of additional development
occurring on those adjoinir.~g properties by eliminating
the need for the installation of the street facilities
when the adjoining properties are developed, and thus,
directly benefits the adjoining properties.
Accordingly, the City Council finds that it is
equitable to assess a charg~~e on the owners of the
adjoining properties incident to and as a condition of
development occurring on tY:~e adjoining properties in an
amount equal to each adjoining property's proportional
share of the cost of installing the street facilities,
and to use the revenue derived from the charges to
reimburse the initial developer for the cost of
installing that part of the street facilities which
benefit the adjoining properties.
Based on the foregoing, the City Council determines
that there is a reasonable relationship between the
street facilities, the costs of which will be reimbursed
with the charges assessed ~~ursuant to this Chapter, and
the development upon which the charges are assessed.
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2. That the revenues from the street facility
reimbursement charges assessed under Chapter 14, and
received by the City, shal:l be used to reimburse
developers for the cost of that part of the street
facilities installed by thE~m which benefit the adjoining
properties for which the charges are assessed, in
accordance with the terms ~~nd conditions of a
Reimbursement Agreement bei~ween the City and the initial
developer as provided in this Chapter. Based on the
foregoing, the City Council. determines that there is a
reasonable relationship between the use of the street
facility reimbursement charges provided for by this
Chapter and the development: upon which the charges are
assessed.
3. That the street facility reimbursement charges
assessed under Chapter 14 for the purpose of '
reimbursing developers for the costs of installing
street facilities which benefit adjoining properties,
shall be in an amount equal to each adjoining property's
proportional share of such costs, as more particularly
calculated and set forth in a reimbursement agreement
between the City and the initial developer pursuant to
this Chapter. Based on the foregoing, the City Council
determines that there is a reasonable relationship
between the amount of the street facility reimbursement
charges provided for by this Chapter and the cost of the
street facilities for which the charges are assessed.
SECTION 2. AMENDMENTS: Title 18 of the Cupertino
Municipal Code, entitled "Subdivisions" is hereby
amended by adding thereto a new Chapter 14 to be
entitled "Street Facility Reimbursement Charges" and to
be numbered and to read as follows:
Section 18-1.1401 - Pur ose. This article is enacted in
order to establish a procedure for reimbursing
developers of property located within the City a portion
of the costs of installing :street facilities which
adjoin other properties within the City, reduce the cost
of any additional developme~zt occurring on the adjoining
properties by eliminating the need for the installation
of the street facilities at the time such development
occurs, and thereby directl~~ benefit the adjoining
properties. J~
Section 18-1.1402 - Definitions. In addition to the
following definitions, all other definitions set forth
in other provisions of this Title shall govern the
construction of the words and phrases used in this
Chapter:
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A. "Benefited property" mE~ans a parcel of real
property, or any part they<~of, which adjoins a street
facility which was installE~d by an initial developer.
B. "Initial developer" me~~ns any person, including the
City, who installs off-sitE~ street facilities which
benefit other parcels incident to or as a condition of
the approval of a final ma~~, final parcel map or
conditional certificate of compliance.
C. "Street facilities" me<~ns a public street installed
within the City or any pare: thereof including, but not
limited to, the street surf=ace, street base, street
sub-base, sidewalks, curbs, gutters, storm drains street
lights, street signs, land:~caping, sound walls and other
facilities necessary and a~~purtenant thereto.
Section 18-1.1403 - Street facility costs subject to
reimbursement: The street facility costs which shall be
subject to reimbursement iti the manner provided by this
Chapter include all direct costs usually incurred by an
initial developer who is rE~quired to install street
facilities that also benefit a benefited property,
subsequent to the effective' date of this ordinance,
incident to or as a condition of the approval of a
subdivision map, parcel ma~~ or conditional certificate
of compliance.
These reimbursable costs include, but are not
limited to, costs incurred in designing street
facilities, the cost of plain check fees and other fees
incurred in securing City rind other governmental
approvals of the plans and specifications for the street
facilities, the cost of they land upon which the street
facilities are installed, rind the cost of all labor,
materials, equipment and contractors employed in
installing the street facilities, except for:
A. The cost of installing temporary street facilities:
B. The cost of maintenancE~ work performed on existing
street facilities; and
C. Any portion of the cost: of installing street
facilities in excess of they usual cost of installing
local street facilities as determined by the City
Engineer in the manner provided in this Chapter.
Section 18-1.1404 - Reimbursement agreement.
A. As a condition of approval of a subdivision map,
parcel map or conditional certificate of compliance, the
initial developer shall enter into a Reimbursement
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Agreement with the City in order to receive
reimbursement for the port:ion of street facility costs,
including interest where a~~plicable, in excess of the
installation costs incurred for the initial developer's
property, or for the cost of the land upon which the
street facilities were installed, including interest
where applicable. Any reimbursement to the initial
developer shall be paid oui: of the revenues received by
the City from the street f~~cility reimbursement charges
assessed in the manner provided by this Chapter.
B. The Reimbursement AgreE~ment shall be signed by the
Mayor, approved as to form by the City Attorney and
shall set forth the follow:Lng information:
(1) The name, capacit;~ and address of the initial
developer:
(2) A description of t:he street facility costs
subject to reimbursement:
(3) An itemized staterlent, prepared by and attested
to by a licensed engineer, of the reimbursable costs to
be incurred by the initial developer in installing the
street facilities:
(4) A legal description and assessor's parcel
number for each benefited i~roperty, excepting the
initial developer's property;
(5) An engineered plat: depicting the street
facilities and each benefited property;
(6) The total street facility costs subject to
reimbursement for each particular benefited property;
(7) The City's obligation to reimburse the initial
developer an amount from tYie street facility charge
assessed upon benefited properties and received by the
City, if any, at the time rind in the manner provided by
this Chapter.
(8) Methods of acquisition of land necessary for
the installation of the street facilities, imposition of
costs, recovery of interest:; and
(9) Such additional information and documents as
may reasonably be required by the City Engineer.
Section 18-1.1405 - Imposition of street facility
reimbursement charges, cost: of land and interest upon
benefited properties.
A. Where street facilitie:~ have been installed by the
City or the initial develo~>er without cost to the
benefited property owner, t:he benefited property owner,
as a condition precedent to obtaining a final map, a
final parcel map or a conditional certificate of
compliance, shall pay the City for the cost of the land
at the cost to the City or to the initial developer, and
shall pay a street facilit~~ reimbursement charge for the
facilities which the City ar the initial developer
installed on the streets abutting or on the benefited
property in an amount equal to such benefited property
owner's share of the total cost of the street facilities
as set forth in the Reimbursement Agreement. Payment
for both land and facilities shall include simple
interest in the amount of seven percent per annum, to be
calculated in the following manner:
1. Land Cost. Interest to accrue from the date the
street facilities are acce;~ted by the City to the date
the street facility reimbursement charge is paid, or if
the land is purchased by t:ze City for a City project,
from the date of purchase 'to the date the charge is
paid .
2. Street Facility Cost. Interest to accrue from
the date the street facilities are accepted by the City
to the date the street facility reimbursement charge is
paid, or if installed by the City, from the date
installation commenced to 'she date the charge is paid.
B. Provided, however, tha1~ the interest shall be waived
if the benefited property ~~wner dedicates or has
dedicated to the City land necessary for the street
facilities, or where no su~:h dedication is necessary.
Section 18-1.1406 - Disposition of street facility
reimbursement charge reven~~es. The revenues received by
the City from street facility charges assessed pursuant
to this Chapter shall be u:~ed solely for reimbursements
to initial developers in tie manner provided by this
Chapter and the Reimbursem<~nt Agreement. Provided,
however, that in the event the City is unable to locate
the initial developer after five (5) years of due
diligent searching commenc:Lng from the date the street
facility reimbursement charges are paid, or upon the
discovery of facts establi:~hing that a due diligent
search would be futile, thE~ revenues collected hereunder
shall be paid to the treasurer of the City for deposit
in the general fund.
Section 18-1.1407 - Acquisition of necessary land,
costs, interest.
A. Where the initial deve7_oper at its own cost acquires
land for the installation of the mandated street
facilities, reimbursement t:o the initial developer by
the City for that portion of the cost of those street
facilities in excess of the' street facilities required
for the initial developer': property, shall include
interest in an amount equal. to the interest received by
the City from the owners of: benefited properties as
imposed by this Chapter in section 18-1.1406.
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B. If the initial developE~r cannot purchase or
otherwise acquire land necE~ssary for the installation of
the street facilities, the City shall, no later than 120
days from the filing by thE~ initial developer of a final
subdivision map or final p~ircel map, or in the case of a
certificate of compliance, any time prior to issuance of
a certificate of occupancy,, acquire by negotiation or
commence proceedings pursu~~nt to California Code of
Civil Procedure Section 12:30.010 et sq. (including
proceedings for immediate F~ossession under Code of Civil
Procedure Section 1255.410) the necessary land.
C. Where the City acquirer land necessary for the
installation of the street facilities in the manner
provided in subsection B of: this section, the
Reimbursement Agreement shell provide that the initial
developer shall reimburse t:he City for all costs,
including litigation costs, incurred by the City in the
acquisition of such land.
The Reimbursement Agreement shall also provide that
prior to commencement of arty proceedings to acquire the
necessary land pursuant to the City's eminent domain
powers, the initial develoX~er shall deposit with the
City an amount to be determined by the Director of
Public Works, which amount shall be based on a
reasonable estimate of the costs of acquisition of said
land. If the deposit exceeds the actual cost of
acquisition, the City shall. refund the excess amount to
the initial developer. If the deposit is less than the
actual cost of acquisition, upon written demand by the
City, the initial developer shall pay the additional sum
to the City.
D. Where no dedication of land is necessary for the
street facilities, or where the City is able to acquire
land necessary for the street facilities at no cost
pursuant to negotiations with the owner or owners of
benefited properties for which a street facility
reimbursement charge is assessed under section 18-1.1406
of this Chapter, and as part of those negotiations the
City waives the requirement. to pay interest on the
street facility reimbursement charge, the initial
developer shall not be entitled to interest on the
reimbursement charges assessed those benefited
properties.
Section 18-1.1408 - Other street facility charges. The
street facility reimbursement charges assessed pursuant
to this Chapter shall be in addition to any street
facility improvement charges assessed pursuant to
Chapter 14.04 of this Code, as well as any street
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facility or other public irlprovement charges assessed
pursuant to any other ordinance or resolution adopted by
the City Council.
Section 18-1.1409 - Rules rind regulations. The City
Engineer shall have the power to establish reasonable
rules and regulations consistent with the provisions of
this Chapter for the purpo:>e of its administration and
enforcement. Such rules and regulations shall be
effective upon approval ~thE~reof by the City Council.
SECTION 3. ENFORCEMENT:
This Ordinance shall be in full force and effect
thirty days (30) after the date of its passage and
adoption.
The City Clerk is hereby authorized and instructed
to file a certified copy of` this ordinance upon its
becoming effective with thE~ Sheriff's Office of the
County of Santa Clara, State of California.
SECTION 4. PUBLICATION:
The City Clerk shall cause this ordinance to be
published at least once in a newspaper of general
circulation published and circulated in the City within
fifteen (15) days after its; passage, in accordance with
Section 36933 of the Goverr.~ment Code; shall certify to
the adoption of this ordinance and shall cause this
ordinance and her certification, together with proof of
publication, to be entered in the Book of Ordinances of
the Council of this City.
INTRODUCED at a regular meeting of the City
Council this 2nd day of May 1994, and ENACTED
at a regular meeting of they City Council this 16th day
of May , 1994, by the following vote:
Vote: Members of the City Council:
Ayes: Burnett, Sorensen, Koppel
Noes : Bautista, Dean
Absent : Nane
Abstain : None
ATTEST: APPROVED:
/s/ Kim Marie Smith /s/ Barb Koppel
City Clerk i~Ia.yor, City of Cupertino
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