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HomeMy WebLinkAbout2016-11-28 Ordinance 5400160802 jb 0131541 1 Nov. 10, 2016 Ordinance No. 5400 Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code (PAMC) Title 16 (Building Regulations), Chapters 16.45 (Transportation Impact Fee for New Nonresidential Development in the Stanford Research Park/El Camino Real CS Zone), 16.46 (Approval of Projects with Impacts on Traffic in the San Antonio/West Bayshore Area), 16.47 (Approval of Projects with Impacts on Housing), 16.57 (In­Lieu Parking Fee For New Nonresidential Development in the Commercial Downtown (CD) Zoning District), 16.58 (Development Impact Fees), 16.59 (Citywide Transportation Impact Fee), 16.60 (Charleston Arastradero Corridor Pedestrian and Bicyclist Safety Impact Fee), 16.61 (Public Art for Private Developments), and Title 21 (Subdivisions and Other Divisions of Land), Chapter 21.50 (Parkland Dedication or Fees In­Lieu Thereof) and Adding 16.64 (Development Fee and In­Lieu Payment Administration), The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Subdivision (c) and (d) of Section 16.45.060 Calculation of Transportation Impact Fee of Chapter 16.45 (Transportation Impact Fee for New Nonresidential Development in the Stanford Research Park/El Camino Real CS Zone) of the Palo Alto Municipal Code is amended to read as follows: 16.45.060 Calculation of Transportation Impact Fee. *** (c) Calculation of Fee. In order for new nonresidential development in the area to bear proportionately the cost of the identified capacity improvements, such new development shall pay a fee of $8.20 per gross square foot of development, determined by dividing the total estimated cost of $14,690,773.00 by the total permitted new development of 1,794,000 square feet. The rate of the fee shall be subject to annual adjustment for inflation pursuant to Section 16.64.110. This fee shall be adjusted annually on July 1 by an amount equal to the change in the construction cost index for the preceding year, as determined by the Engineering News Record, the McGraw Hill Construction Weekly. (d) Payment. The fee shall be paid as set forth in Chapter 16.64 of this Codein full to the city building inspection division prior to issuance of the building permit for the development. If no building permit is required for a change of use, the fee shall be paid in full prior to issuance of a certificate of use and occupancy. *** (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 2 Nov. 10, 2016 SECTION 2. Subdivision (e) of Section 16.45.070 Penalties of Chapter 16.45 (Transportation Impact Fee for New Nonresidential Development in the Stanford Research Park/El Camino Real CS Zone) of the Palo Alto Municipal Code is amended to read as follows: 16.45.070 Penalties *** (e) Persons employed in the following designated employee positions are authorized to exercise the authority provided in the California Penal Code Section 836.5 and are authorized to issue citations for violations of this chapter: development services director, director of planning and community environment and their designees.chief building official, assistant chief building official, and ordinance compliance inspector. SECTION 3. Subdivision (d) of Section 16.46.040 Calculation of Transportation Impact Fee of Chapter 16.46 (Approval of Projects with Impacts on Traffic in the San Antonio/West Bayshore Area) of the Palo Alto Municipal Code is amended to read as follows: 16.46.040 Calculation of Transportation Impact Fee. *** (d) Payment. The traffic impact fee shall be paid as set forth in Chapter 16.64 of this Codein full to the city of Palo Alto before the first grading or building permit for a project is issued. If no grading or building permit is required for a conversion of use, the fee shall be paid in full before a certificate of use and occupancy permit is issued. *** SECTION 4. Subdivision (e) of Section 16.46.060 Penalties of Chapter 16.46 (Approval of Projects with Impacts on Traffic in the San Antonio/West Bayshore Area) of the Palo Alto Municipal Code is amended to read as follows: 16.46.060 Penalties *** (e) Persons employed in the following designated employee positions are authorized to exercise the authority provided in the California Penal Code Section 836.5 and are authorized to issue citation for violations of this chapter: development services director,director of planning and community environment and their designeeschief building official, assistant chief building official and ordinance compliance inspector. SECTION 5. Subdivision (e) of Section 16.47.040 Housing Requirements of Chapter 16.47 (Approval of Projects with Impacts on Housing) of the Palo Alto Municipal Code is (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 3 Nov. 10, 2016 amended to read as follows: [Note: This section will be deleted if Council adopts a pending ordinance consolidating the housing fees into a new Chapter.] 16.47.040 Housing Requirements. *** (e) The in­lieu payment shallmust be paid as set forth in Chapter 16.64 of this Codeprior to issuance of the first grading or building permit for a project. Any permit issued prior to payment shall be null and void. For a phased project, payments may be made for each portion of a phased project prior to issuance of the first grading or building permit for that phase. *** SECTION 6. Subdivision (e) of Section 16.47.050 Penalties of Chapter 16.47 (Approval of Projects with Impacts on Housing) of the Palo Alto Municipal Code is amended to read as follows: 16.47.050 Penalties *** (e) Persons employed in the following designated employee positions are authorized to exercise the authority provided in the California Penal Code Section 836.5 and are authorized to issue citation for violations of this chapter: development services director, director of planning and community environment and their designeeschief building official, assistant chief building official, and ordinance compliance inspector. SECTION 7. Section 16.57.030 Calculation of In­Lieu Payment, 16.57.040 Timing of Payments and Section 16.57.070 Fee Review of Chapter 16.57 (In­Lieu Parking Fee For New Nonresidential Development in the Commercial Downtown (CD) Zoning District) of the Palo Alto Municipal Code are amended to read as follows: 16.57.030 Calculation of in­lieu payment. (a) Initial Fee. The fee for each two hundred fifty square feet of gross floor area in a development shall equal the sum of the construction, land acquisition, if any, and administrative costs attributable to the provision of one new parking space, as established by the city council on the basis of calculations made under this chapterby the chief transportation official. The fee shall be $30,250.00 per two hundred fifty square feet of gross floor area, and has been calculated based upon the feasibility study. (b) Recalculated Fee. In the event the city council approves the construction of a public parking structure or structures, the citychief transportation official shall adjust the fee as follows: (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 4 Nov. 10, 2016 (i) At the time the construction contract is awarded, the fee shall be adjusted to reflect the actual "design costs" incurred by the city for the construction project as of the date the construction contract is awarded, plus "construction costs" based on the construction contract award. (ii) At the time the final payment is made upon completion of the construction project, the fee shall be adjusted to reflect the actual "design costs" and "construction costs" incurred by the city for the construction project. (iii) The fee as recalculated pursuant to subsection (b)(i) or (b)(ii) may be higher or lower than the initial fee. (iv) In the event that a construction project involves the construction of more than one parking structure, the recalculation of the fee shall be based on the structure with the highest cost per net new parking space. (c) The rate of the fee shall be subject to annual adjustment for inflation pursuant to Section 16.64.110. The fee, whether calculated in accordance with subsection (a) or subsection (b) shall be adjusted annually by the chief transportation official, by an amount equal to the change in the construction cost index for the preceding year, as determined for the San Francisco Bay Area by the "Engineering News Record," the McGraw Hill Construction Weekly. If the fee is recalculated during the year, the next annual adjustment shall be prorated based on the change in the construction cost index between the date the fee was recalculated and the date of the annual adjustment. (d) For the purposes of this section, the following definitions shall apply: (i) "Construction costs" shall mean and include the construction costs, as bid, including any authorized contingency or as paid, based upon actual construction. "Construction costs" shall not include bond financing costs, if applicable. (ii) "Design costs" shall mean and include architect fees, engineering fees and other consultant fees, as proposed or as paid, based upon actual performance. "Design costs" shall not include bond financing costs, if applicable. (iii) "Feasibility study" shall mean and refer to the study entitled "Downtown Parking Structure Feasibility Study, dated January 16, 1997. (iviii) "Net new parking space" cost shall mean the cost to provide one new parking space in a public parking structure, and shall equal the sum of the construction, land acquisition, if any, and administrative costs of the structure attributable to each space in the structure. 16.57.040 Timing of Payments. The fee shall be paid as set forth in Chapter 16.64 of this Code. In accordance with the provisions of Section 16.57.010, the obligation to pay the fee established by this chapter shall accrue as of the date the first discretionary approval is given for the development, or if no (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 5 Nov. 10, 2016 discretionary approval is required, as of the date a complete application is submitted for a building permit for the development. Fees shall be due and payable to the City of Palo Alto at the transportation division prior to issuance of a building permit for the development, and shall be calculated at the rate of the fee in effect as of the date the obligation to pay the fee accrued. Payment of the fee may be deferred to the date of final building inspection approval of the development, provided the owner of the real property for which the fee has been required enters into an agreement with the city prior to issuance of the building permit for the development. The agreement shall provide that the amount of the fee shall be calculated at the rate of the fee in effect on the date the deferred payment is actually made. The agreement shall further provide that final occupancy approval shall not be given until the fee is paid. The agreement shall also provide that in any action to collect the fee or any portion thereof the city shall be entitled to all of its costs of enforcement and collection, including reasonable attorneys fees. The director of planning and community environment shall be authorized on behalf of the city to execute the agreement described in this section, in a form acceptable to the city attorney 16.57.070 Fee review. The uses proposed for expenditure of the moneys in the fund shall be reviewed annually by the city council along with its review of the city's capital improvement program, and the moneys from the fund shall be appropriated for such expenditure in the manner provided by the Palo Alto City Charter and Municipal Code for adoption of the annual budget. On an annual basis following the enactment of this chapter, the chief transportation official shall review the estimated cost of the described parking, the continued need for that parking and the reasonable relationship between such need and the impacts of pending or anticipated nonresidential development within the assessment district. The chief transportation official shall report his or her findings to the city council at a noticed public hearing and recommend any adjustment to these requirements as may be needed. SECTION 8. Section 16.58.030 Exemptions and 16.58.040 Timing of Payments of Chapter 16.58 (Development Impact Fees) of the Palo Alto Municipal Code is amended to read as follows: 16.58.030 Exemptions. The provisions of this chapter shall not apply to the following: * * * (g) Any residential subdivision for which land dedication or fees in lieu thereof are required pursuant to Chapter 21.50 of the Palo Alto Municipal Code. This exemption shall only apply to the park development fee described in Section 16.58.020(a). 16.58.040 Timing of Payments. (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 6 Nov. 10, 2016 The fee shall be paid as set forth in Chapter 16.64 of this Code.(a) The obligation to pay the fees established by this chapter shall accrue as of the date the first discretionary approval is given for the development, or if no discretionary approval is required, as of the date a complete application is submitted for a building permit for the development. Fees shall be due and payable as of the date a complete application is submitted for a building permit for the development. Fees shall be due and payable to the City of Palo Alto prior to issuance of a building permit for the development, and shall be calculated at the rate of the fees in effect as of the date the obligation to pay the fees accrued. (b) Payment of the fees may be deferred, for residential development only, to the date of final building inspection approval of the development, provided the owner of the real property for which the fees are required enters into a recordable agreement with the city prior to issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the fees are paid. The agreement shall also provide that in any action to collect the fees or any portion thereof the city shall be entitled to all of its costs of enforcement and collection, including reasonable attorneys fees. The director of planning and community environment shall be authorized on behalf of the city to execute the agreement described in this section, in a form acceptable to the city attorney. SECTION 9. Section 16.58.090 Annual Rate Adjustment is added to Chapter 16.58 (Development Impact Fees) of the Palo Alto Municipal Code to read as follows: 16.58.090 Annual Rate Adjustment. The rate of the fee shall be subject to annual adjustment for inflation pursuant to Section 16.64.110. SECTION 10. Section 16.59.050 Timing of Payments of Chapter 16.59 (Citywide Transportation Impact Fee) of the Palo Alto Municipal Code is amended to read as follows: 16.59.050 Timing of Payments. (a) The fee shall be paid as set forth in Chapter 16.64 of this CodeExcept as otherwise required by Government Code Section 66007, the fee shall accrue when the first discretionary approval is given for a new development after the effective date of this section, or if no such discretionary approval is required subsequent to the effective date of this section, when an application is submitted for a building permit for that new development. In either case, the fee shall be payable when an application is submitted for a building permit for the new development. A fee shall be calculated at the rate in effect when the fee accrues. (b) Payment of the fee may be deferred, for residential development only, to the date of final building inspection approval of the development, provided the owner of the real property for which the fees are required enters into a recordable agreement with the city prior to (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 7 Nov. 10, 2016 issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the fees are paid. The agreement shall also provide that, in any action to collect the fees or any portion thereof, the city shall be entitled to all of its costs of enforcement and collection, including reasonable attorney's fees. The director of planning and community environment may execute the agreement on behalf of the city in a form acceptable to the city attorney. Any deferral granted pursuant to this paragraph (b) shall be consistent with the requirements of Government Code Section 66007. (cb) A credit against the fee may be given for dedications of eligible citywide transportation capacity enhancements constructed or provided at private expense and for the value of land dedicated to the city that is necessary or useful to an eligible citywide transportation capacity enhancement. Such credit will be granted only if the city council determines that: (i) the city will experience a substantial cost savings or service quality improvement as a result of private construction or provision of the capacity enhancement or the dedication of land, (ii) the capacity enhancement can be expected to immediately and significantly relieve citywide traffic congestion, and (iii) the grant of the credit, in lieu of the fee, will not cause the city to delay the implementation of elements of the city's transportation plan that are of higher priority, in the judgment of the city council, than the land or capacity enhancement that will be dedicated. The credit shall be applied at the time the city accepts the land or capacity enhancement. Where the city council has made the determinations required by this subdivision, payment of a portion of the fee equal to the amount of an expected credit against the fee may be deferred to the date of final building inspection approval of the development, provided the owner of the real property for which the fees are required enters into a recordable agreement with the city prior to issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the fees are paid or the credit issued. The agreement shall also provide that, in any action to collect the fees or any portion thereof, the city shall be entitled to all of its costs of enforcement and collection, including reasonable attorney's fees. The director of planning and community environment may execute the agreement on behalf of the city in a form acceptable to the city attorney. Any deferral granted pursuant to this paragraph (b) shall be consistent with the requirements of Government Code Section 66007. Where a credit is given for the provision of a service that is an eligible capacity enhancement, the deferral of the fee, and the application of the credit, may be according to a schedule set forth in the recorded agreement, which schedule shall be designed to ensure that no credit is applied in advance of the provision of services for which the credit is made. SECTION 11. Section 16.59.060(f) Calculation of Fee of Chapter 16.59 (Citywide Transportation Impact Fee) of the Palo Alto Municipal Code is amended to read as follows: 16.59.060 Calculation of Fee. *** (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 8 Nov. 10, 2016 (f ) The rate of the fee shall be subject to annual adjustment for inflation pursuant to Section 16.64.110. Beginning July 1, 2005, and on each July 1 thereafter, the rate of the fee shall be automatically adjusted according to the following formula: Council­Approved Rate = Most Recent ENR / ENR at Council­Approval Where the "Council­Approved Rate" is the rate most recently set by resolution or ordinance of the city council, "Most Recent ENR" is the most recently published construction cost index when the calculation is made and "ENR at Council­Approval" is the construction cost index published for the month in which the council approved the "Council­Approved Rate." *** SECTION 12. Section 16.59.090(e) Penalties of Chapter 16.59 (Citywide Transportation Impact Fee) of the Palo Alto Municipal Code is amended to read as follows: 16.59.090 Penalties *** (e) Persons employed in the following designated employee positions are authorized to exercise the authority provided in the California Penal Code Section 836.5 and are authorized to issue citation for violations of this chapter: development services director,director of planning and community environment and their designeeschief building official, assistant chief building official, and ordinance compliance inspector. SECTION 13. Section 16.60.050 Timing of Payments of Chapter 16.60 (Charleston Arastradero Corridor Pedestrian and Bicyclist Safety Impact Fee) of the Palo Alto Municipal Code is amended to read as follows: 16.60.050 Timing of Payments. (a) The fee shall be paid as set forth in Chapter 16.64 of this CodeExcept as otherwise required by Government Code Section 66007, the fee shall accrue when the first discretionary approval is given for a new development after the effective date of this section, or, if no such discretionary approval is required subsequent to the effective date of this section, when an application is submitted for a building permit for that new development. In either case, the fee shall be payable when an application is submitted for a building permit for the new development. A fee shall be calculated at the rate in effect when the fee accrues. (b) Payment of the fee may be deferred, for residential development only, to the date of final building inspection approval of the development, provided the owner of the real property for which the fees are required enters into a recordable agreement with the city prior to issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the fees are paid. The agreement shall also provide that, in any action to collect the fees or any (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 9 Nov. 10, 2016 portion thereof, the city shall be entitled to all of its costs of enforcement and collection, including reasonable attorney's fees. The director of planning and community environment may execute the agreement on behalf of the city in a form acceptable to the city attorney. Any deferral granted pursuant to this paragraph (b) shall be consistent with the requirements of Government Code Section 66007. (c)A credit against the fee may be given for dedications of eligible safety enhancements constructed or provided at private expense and for the value of land dedicated to the city that is necessary or useful to an eligible safety enhancements. Such credit will be granted only if the city council determines that: (i) the city will experience a substantial cost savings or service quality improvement as a result of private construction or provision of the eligible safety enhancements or the dedication of land, (ii) the eligible safety enhancements can be expected to immediately and significantly improve bicyclist or pedestrian safety, and (iii) the grant of the credit, in lieu of the fee, will not cause the city to delay the implementation of elements of the Program that are of higher priority, in the judgment of the city council, than the land or eligible safety enhancement that will be dedicated. The credit shall be applied at the time the city accepts the land or eligible safety enhancement. Where the city council has made the determinations required by this subdivision, payment of a portion of the fee equal to the amount of an expected credit against the fee may be deferred to the date of final building inspection approval of the development, provided the owner of the real property for which the fees are required enters into a recordable agreement with the city prior to issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the fees are paid or the credit issued. The agreement shall also provide that, in any action to collect the fees or any portion thereof, the city shall be entitled to all of its costs of enforcement and collection, including reasonable attorney's fees. The director of planning and community environment may execute the agreement on behalf of the city in a form acceptable to the city attorney. Any deferral granted pursuant to this paragraph (b) shall be consistent with the requirements of Government Code Section 66007. Where a credit is given for the provision of a service that is an eligible safety enhancement, the deferral of the fee, and the application of the credit, may be according to a schedule set forth in the recorded agreement, which schedule shall be designed to ensure that no credit is applied in advance of the provision of services for which the credit is made. SECTION 14. Section 6.60.060(e) Calculation of Fee of Chapter 16.60 (Charleston Arastradero Corridor Pedestrian And Bicyclist Safety Impact Fee) of the Palo Alto Municipal Code is amended to read as follows: 16.60.060 Calculation of Fee. *** (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 10 Nov. 10, 2016 (e) The rate of the fee shall be subject to annual adjustment for inflation pursuant to Section 16.64.110. Beginning July 1, 2006, and on each July 1 thereafter, the rate of the fee shall be automatically adjusted according to the following formula: Council­Approved Rate = Most Recent ENR / ENR at Council­Approval Where the "Council­Approved Rate" is the rate most recently set by resolution or ordinance of the city council, "Most Recent ENR" is the most recently published construction cost index when the calculation is made and "ENR at Council­Approval" is the construction cost index published for the month in which the council approved the "Council­Approved Rate." *** SECTION 15. Section 16.60.090(e) Penalties of 16.60 (Charleston Arastradero Corridor Pedestrian and Bicyclist Safety Impact Fee) of the Palo Alto Municipal Code is amended to read as follows: 16.60.090 Penalties *** (e) Persons employed in the following designated employee positions are authorized to exercise the authority provided in the California Penal Code Section 836.5 and are authorized to issue citation for violations of this chapter: development services director,chief building inspector, chief transportation official, and director of, planning and community environment director and their designeeschief building official, assistant chief building official, and ordinance compliance inspector. SECTION 16. Section 16.61.090 Developer’s Option to Pay Fees to Public Art Fund In­Lieu of Providing On­Site Art of Chapter 16.61 (Public Art for Private Developments) of the Palo Alto Municipal Code is amended to read as follows: 16.61.090 Developer’s option to pay fees to public art fund in­lieu of providing on­site art. In lieu of installation of on­site public art, the developer may elect to make a monetary contribution to the Palo Alto Public Arts Fund. The amount of the contribution shall be the cost of the public art required by Section 16.61.040. A developer who elects to satisfy the requirements of this chapter through a contribution to the Fund must complete the payment in­lieu prior to the issuance of any building permit for the development project. The payment shall be made as set forth in Chapter 16.64 of this Code. SECTION 17. Chapter 16.64 (Development Fee and In­Lieu Payment Administration) is added to the Palo Alto Municipal Code to read as follows: CHAPTER 16.64 DEVELOPMENT FEE AND IN­LIEU PAYMENT ADMINISTRATION Sections: (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 11 Nov. 10, 2016 16.64.010 Applicability 16.64.020 Due Date 16.64.030 Deferred Payment 16.64.040 Calculation of Fees 16.64.050 Adoption of Fee Schedule 16.64.060 Notice of Protest Rights 16.64.070 Informal Hearing 16.64.080 Appeal of Director’s Determination 16.64.090 Cost of Protest 16.64.100 Administration 16.64.110 Inflation Adjustment Section 16.64.010 Applicability This Chapter 16.64 applies to any fee or in­lieu payment imposed under any provision of this code that states that that payment of the fee or in­lieu payment shall be made pursuant to this Chapter 16.64. For purposes of this chapter the term “fee” shall be used to refer to any such fee or in­lieu payment, regardless of how denominated elsewhere in this code. Section 16.64.020 Due Date A fee shall be paid on or before the issuance of the first building permit for the project. For a phased project, payments may be made for each portion of a phased project prior to issuance of the first building permit for that phase. If there is no building permit for the project, the fee shall be paid upon issuance of the first city permit or other approval. If no city permit or other approval is required, and the obligation to pay the fee is triggered by a change in use, payment of the fee must be made before the change in use occurs. Section 16.64.030 Deferred Payment For residential development only, payment of a fee may be deferred to the date of final building inspection approval of the development, provided the owner of the real property for which the fees are required enters into a recordable agreement with the city prior to issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the fees are paid. The director of planning and community environment may execute the agreement on behalf of the city in a form acceptable to the city attorney. Section 16.64.040 Calculation of Fee A fee shall be payable at the rate specified in the council­adopted Municipal Fee Schedule in effect on the date the fees are paid, except that the applicant for a vesting tentative map for a development project shall pay the fees in effect on the date the application for the vesting tentative map is deemed complete. (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 12 Nov. 10, 2016 Section 16.64.050 Adoption of Fee Schedule The City Council can revise the rate of any fee by amending, by ordinance or resolution, the rate set forth in the Municipal Fee Schedule. Any inflation­adjustment provided in this code with respect to a fee shall go into effect upon approval by the city council of a change to the Municipal Fee Schedule reflecting the adjusted amount of the fee. Section 16.64.060 Notice of Protest Rights (a) Each applicant is hereby notified that, in order to protest the imposition of any impact fee required by this chapter, the protest must be filed in accordance with the requirements of this chapter and the Mitigation Fee Act. Failure of any person to comply with the protest requirements of this chapter or the Mitigation Fee Act shall bar that person from any action or proceeding or any defense of invalidity or unreasonableness of the imposition. (b) On or before the date on which payment of the fee is due, the applicant shall pay the full amount required by the city and serve a written notice to the director of planning and community environment with all of the following information: (1) a statement that the required payment is tendered, or will be tendered when due, under protest; and (2) a statement informing the city of the factual elements of the dispute and the legal theory forming the basis for the protest. (c) The applicant shall bear the burden of proving, to the satisfaction of the director, entitlement to a fee adjustment. Section 16.64.070 Informal Hearing (a) The director shall schedule an informal hearing regarding the protest, to be held no later than 60 days after the imposition of the impact fees upon the development project, and with at least 10 days’ prior notice to the applicant (unless either dates are otherwise agreed by the director and the applicant). (b) During the informal hearing, the director shall consider the applicant’s protest, relevant evidence assembled as a result of the protest, and any additional relevant evidence provided during the informal hearing by the applicant and the city. The director shall provide an opportunity for the applicant to present additional evidence at the hearing in support of the protest. (c) The director shall issue a written determination regarding the protest. The director’s determination shall support the fee imposed upon the development project unless the applicant establishes, to the satisfaction of the director, entitlement to an adjustment to the fee. (d) The director may elect to appoint a designee to hear and decide a protest under this section. Section 16.64.080 Appeal of Director’s Determination (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 13 Nov. 10, 2016 (a) Any applicant who desires to appeal a determination issued by the director shall submit a written appeal to the director and the city manager. A complete written appeal shall include a complete description of the factual elements of the dispute and the legal theory forming the basis for the appeal of the director’s determination. An appeal received by the city manager more than 10 calendar days after the director’s determination may be rejected as late. Upon receipt of a complete and timely appeal, the city manager shall appoint an independent hearing officer to consider and rule on the appeal. (b) The independent hearing officer shall, in coordination with the applicant and the director, set the time and place for the appeal hearing, and provide written notice thereof. The independent hearing officer shall consider relevant evidence, provide an opportunity for the applicant and the city to present additional noncumulative evidence at the hearing, and preserve the complete administrative record of the proceeding. (c) Within 30 days after the independent hearing officer closes the hearing and receives post­ hearing briefs (if any), the independent hearing officer shall issue a written decision on the appeal hearing which shall include a statement of findings of fact in support of the decision. The independent hearing officer’s discretion shall be limited to a determination that either supports the director’s determination or orders the city to refund all or a portion of the impact fees to the applicant. The applicant shall bear the burden of proving entitlement to a fee adjustment. The decision of the hearing officer is final and conclusive, and is subject to judicial review. Section 16.64.090 Cost of Protest The applicant shall pay all city costs related to any protest or appeal pursuant to this chapter, in accordance with the fee schedule adopted by the city. At the time of the applicant’s protest, and at the time of the applicant’s appeal, the applicant shall pay a deposit in an amount established by the city to cover the estimated reasonable cost of processing the protest and appeal. If the deposit is not adequate to cover all city costs, the applicant shall pay the difference within 20 days after receipt of written notice from the director. Section 16.64.100 Administration The City Manager, or her/his designee, is authorized to adopt administrative regulations or guidelines that are consistent with and that further the terms and requirements set forth in this Code. All such administrative regulations or guidelines must be in writing. Such regulations or guidelines may interpret any provision of this chapter, as well as any provision of this code relating to the calculation of a fee. Section 16.64.110 Inflation Adjustment Where it is indicated in this code that a fee is subject to inflation adjustment pursuant to this section, on each July 1, the amount of the fee shall be recalculated according to the following formula: Adjusted Rate = Prior Rate * Most Recent ENR / ENR for Prior Rate (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 14 Nov. 10, 2016 Where the "Prior Rate" is the rate in effect prior at the time this adjustment is calculated, "Most Recent ENR" is the most recently published construction cost index when the adjustment is calculated and "ENR at Council­Approval" is the construction cost index (i) used to calculated the Prior Rate when it was set pursuant to this section or (ii) published for the month in which the council approved the "Prior Rate." "Construction cost index" means the construction cost index for the San Francisco Bay Area set forth in the Engineering News Record published by McGraw Hill and Associates. In the event the Engineering News Record ceases to calculate and publish this index, then the city manager may designate a comparable, alternative index to serve as the construction cost index. The existing rate for a fee shall remain in effect until the recalculated rate is adopted and effective pursuant to Section 16.64.050. SECTION 18. Sections 21.50.060 Procedure and 21.50.070 Calculation of fair market value of Chapter 21.50 (Parkland Dedication or Fees In­Lieu Thereof) of the Palo Alto Municipal Code are added to read as follows: 21.50.060 Procedure. (a) Payment of fees: Any fee due under this Chapter shall be paid as set forth in Chapter 16.64 of this Code. (b) Land dedications. At the time of the filing of the final or parcel map, the subdivider shall dedicate the land to the City by a grant deed or other form acceptable to the City Attorney.The director of public works, director of planning and community environment or city council as appropriate, shall, upon approving a subdivision map, determine the conditions necessary to comply with the requirements for parkland dedication or fees in lieu thereof as set forth in this chapter, and said conditions shall be attached as conditions of approval. 21.50.070 Calculation of fair market value. . . . (c) The rate of the fee shall be subject to annual adjustment for inflation pursuant to Section 16.64.110. Beginning July 1, 2009, and on each July 1 thereafter, the dollar amount set forth in this section shall increase without further action by the city according to the following formula: Most Recent ENR Council­Approved Rate* ENR at Council Approval *Where the "Council­Approved Rate" is the rate set forth in subsection (b). (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 15 Nov. 10, 2016 SECTION 19. Severability. If any section, subsection, sentence, clause, phrase or word of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed and adopted this Ordinance, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. SECTION 20. The City Council finds that this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines, because it can be seen with certainty that there is no possibility of significant environmental effects occurring as a result of the adoption of this ordinance. // // // // // // // // // // // // // // // // // // // // (SGY7MKR)RZIPSTI-((&)%(*'%'')%(% 160802 jb 0131541 16 Nov. 10, 2016 SECTION 21. This ordinance shall become effective upon the commencement of the sixtieth day after the date of its adoption. INTRODUCED: November 7, 2016 PASSED: November 28, 2016 AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Assistant City Attorney City Manager Director of Administrative Services Director of Planning and Community Environment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