Ordinance 1652ORDINANCE NO. 1652
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING SECTIONS 14.04.010, 14.04.110 & 14.04.160 AND ADDING
SECTION 14.04.175 TO CHAPTER 14.04 OF THE CUPERTINO MUNICIPAL
CODE ENTITLED "STREET IMPROVEMENTS"
THE CITY COUNCIL OF THE CITY OF CUPERTINO ORDAINS AS FOLLOWS:
SECTION 1. AMENDMENTS.
I. Section 14.04.010 of the Cu~~ertino Municipal Code is hereby
amended to read as follows:
H. "Reimbursement agreement" means a written agreement with
the City whereby in order to r~sceive reimbursement of certain
street improvement costs, and as a condition precedent to obtaining
a building permit, use permit or site and architectural approval,
the permittee shall enter into.
I. "Unimproved street" means any street or highway in the
City which is less in width from. property line to property line
than the width prescribed in Title: 18 of this Code for the class of
the particular street, or which lacks any improvement required by
this Chapter or other ordinances of the City, including but not
limited to: curbs, gutters, driveways, sidewalks, street trees,
street signs, water lines, fire hydrants, retaining walls,
pavement, storm sewers, sanitary sewers, or street lights.
II. Section 14.04.110 of the Cu~~ertino Municipal Code is hereby
amended to be entitled and to read as follows:
14.04.110 Improvements installed Arior to permit; imposition of
street improvement reimbursement charges, cost of land, & interest.
A. In some instances, the public welfare, safety and economy
can be best served by the ir.~stallation of improvements on
unimproved streets prior to the time that an adjoining property
owner seeks a permit. Since such adjoining property benefits from
the street improvements, the owners of such property are required
to contribute their share of the cost of those street improvements
(just as permittees who seek a permit prior to the installation of
improvements are required to do) when they seek a building permit
unless it is exempt pursuant t~~ Section 14.04.230(D) of this
Chapter, a use permit, or a site and architectural approval.
B. Where street improvements ha~re been installed by the City, or
by another property owner, without cost to the adjoining property
owner, the adjoining property owner, as a condition precedent to
obtaining a permit, or any entitlement to use, for his/her
property, shall pay the City for the cost of the land at the cost
to the City, or another propert~• owner, and shall pay a street
improvement reimbursement charge for the improvements which the
City, or another property owner, installed on the streets abutting
-1-
or included in the benefited pro~~erty, in an amount equal to the
total improvement costs for each particular benefited property as
set forth in the Reimbursement Agreement. Payments for both land
and improvements shall include simple interest in the amount of
seven percent per annum, to be ca]_culated in the following manner:
1. Land Cost. Interest to accrue from the date the street
improvements are accepted by the City to the date the street
improvement reimbursement charges is paid, or if the land is
purchased by the City for a City project, from the date of purchase
to the date the charge is paid;
2. Improvement Cost. Interest to accrue from the date the
street improvements are accepted key the City to the date the street
improvement reimbursement charge is paid, or if installed by the
City, from the date installation commenced to the date the charge
is paid.
C. Provided, however, that the interest shall be waived if the
adjoining property owner dedicatE~s or has dedicated to the City
land necessary for the street .improvements, or where no such
dedication is necessary.
III. Section 14.04.160(B) of the Cupertino Municipal Code is hereby
amended to read as follows:
B. Any permittee desiring a reimbursement for the cost of
installing improvements mandated pursuant to this chapter, or for
the cost of the land upon which such improvements were installed,
shall enter into a Reimburseme~zt Agreement with the City as
provided in Section 14.04.175.
IV. Section 14.04.175 is hereby added to Chapter 14.04 of the
Cupertino Municipal Code to be entitled and to read as follows:
14.04.175 Reimbursement Agreement.
A. As a condition precedent to obtaining a building permit, use
permit, or site and architectural approval, the permittee shall
enter into a Reimbursement Agreement with the City in order to
receive reimbursement for the portion of street improvement costs,
including interest where applicab_e, in excess of the installation
costs incurred for the permittee' s property, or for the cost of the
land, upon which such improvements were installed, including
interest where applicable. Any reimbursement to the permittee
shall be paid out of the revenues received by the City from the
land reimbursement or street improvement reimbursement charges and
interest, if any, assessed in the manner provided in Section
14.04.110.
B. Where the permittee at its own cost acquires land for the
installation of the required street improvements, reimbursement to
the permittee by the City for that: portion of the cost of land and
the cost of those street improvements in excess of the improvements
required for the permittee's property, shall include interest in an
amount equal to the interest received by the City from the owners
of benefited properties as provided in Section 14.04.110.
C. If the permittee cannot pur~~hase or otherwise acquire land
necessary for the installation of •the street improvements, prior to
issuance of a building permit, use permit or site and architectural
approval, the City shall acquirES the necessary land either by
negotiation or pursuant to its eminent domain powers.
D. Where the City acquires land ~zecessary for the installation of
the street improvements in the manner provided in subsection C of
this section, the Reimbursement Pgreement shall provide that the
permittee shall reimburse the ~~ity 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 any proceedings to acquire the necessary land
pursuant to the City's eminent domain powers, the permittee shall
deposit with- the City an amount to be determined by the Director of
Public Works, which amount shall k~e based on a reasonable estimate
of the costs of acquisition of said land. If the deposit exceeds
the actual cost of acquisition, t:he City shall refund the excess
amount to the permittee. If the deposit is less than the actual
cost of acquisition, upon written demand by the City, the permittee
shall pay the additional sum to t:he City.
E. Where the City is able to ac~~uire the land necessary for the
installation of the street improvements at no cost pursuant to
negotiations with the owner or owners of benefited properties for
which a street facility reimbursement charge is assessed pursuant
to section 14.04.110(B) of this chapter, and the interest assessed
on those charges is waived as provided in section 14.04.110(C) of
this chapter, the permittee shall not be entitled to interest on
the reimbursement charges assesse~3 those benefited properties.
F. The Reimbursement Agreement shall be signed by the Mayor,
approved as to form by the City ~-ttorney and shall set forth the
following information:
(1) The name, capacity and ,address of the permittee;
(2) A description of the street improvement costs subject to
reimbursement as delineated in Se~~tion 14.04.040;
(3) An itemized statement, ~~repared by and attested to by a
licensed engineer, of the reimbur:cable costs to be incurred by the
permittee in installing the street improvements;
(4) A legal description and ~~ssessor's parcel number for each
benefited property, excepting the permittee's property;
(5) An engineered plat depicting the street improvements and
each benefited property;
(6) The total street improvement costs subject to
reimbursement for each particular benefited property;
(7) The City's obligation to reimburse the permittee an
amount from the street improvement. charges assessed upon benefited
properties and received by the City, if any, at the time and in the
manner provided by Section 14.04.110;
(8) Methods of acquisition of land necessary for the
installation of the street impi:ovements, imposition of costs,
recovery of interest; and
(9) Such additional info~_mation and documents as may
reasonably be required by the City's Director of Public Works.
V. Section 14.04.176 is hereby added to Chapter 14.04 of the
Cupertino Municipal Code to be entitled and to read as follows:
1.4.04.176 Disposition of street improvement reimbursement charge
revenues. The revenues received by the City from street
improvement charges assessed pursuant to this chapter shall be used
solely for reimbursements to perm.ittees in the manner provided by
this chapter and the Reimbursement Agreement.
Provided, however, that in the event the City is unable to
locate the permittee after five ( 5 ) years of due diligent searching
commencing from the date the street improvement reimbursement
charges are paid, or upon the discovery of facts establishing 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 2. ENFORCEMENT. This ordinance shall be in full force and
effect thirty ( 30 ) days 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 3. 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 Government
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 meet:Lng of the City Council this 2nd
day of Ma , 199 4 , and ENACTED at a regular meeting o~
the City Council t is 16th day of May , 199 4 . by the
following vote:
Vote: Members of the City Council:
Ayes: Bautista, Burnett, De~in, Sorensen, Koppel
Noes : None
Absent : None
Abstain: None
ATTEST: APPROVED:
/s/ Kim Marie Smith /s/ Barb Koppel
City C erk Mayor, City o Cupertino