RESOURCE MANAGEMENT AGENCY - B. BARNES

First reading and motion to accept introduction, waive further reading of the ordinance, and continue the matter to September 13, 2016 for adoption of the proposed ordinance making changes to Sections 5.01.259, 5.01.291 and 5.01.320 of the San Benito County Code relating to the time of payment of impact fees.

SBC FILE NUMBER: 790

Sections 5.01.259, 5.01.291 and 5.01.320 allow impact fees to be paid prior to the date of final inspection or certificate of occupancy, rather than at issuance of a building permit. 

Government Code allows impact fees to be collected at the time of issuance of a Building Permit.

It is recommended that the San Benito County Code be amended to allow the upfront collection of impact fees at the time of issuance of a building permit, thus reducing the potential of a certificate of occupancy being issued without the collection of the proper impact fees.

Subdivision (c) of Government Code section 66007 states:

 (c) (1) If any fee or charge specified in subdivision (a) is not
fully paid prior to issuance of a building permit for construction of
any portion of the residential development encumbered thereby, the
local agency issuing the building permit may require the property
owner, or lessee if the lessee's interest appears of record, as a
condition of issuance of the building permit, to execute a contract
to pay the fee or charge, or applicable portion thereof, within the
time specified in subdivision (a). If the fee or charge is prorated
pursuant to subdivision (a), the obligation under the contract shall
be similarly prorated.
   (2) The obligation to pay the fee or charge shall inure to the
benefit of, and be enforceable by, the local agency that imposed the
fee or charge, regardless of whether it is a party to the contract.
The contract shall contain a legal description of the property
affected, shall be recorded in the office of the county recorder of
the county and, from the date of recordation, shall constitute a lien
for the payment of the fee or charge, which shall be enforceable
against successors in interest to the property owner or lessee at the
time of issuance of the building permit. The contract shall be
recorded in the grantor-grantee index in the name of the public
agency issuing the building permit as grantee and in the name of the
property owner or lessee as grantor. The local agency shall record a
release of the obligation, containing a legal description of the
property, in the event the obligation is paid in full, or a partial
release in the event the fee or charge is prorated pursuant to
subdivision (a).
   (3) The contract may require the property owner or lessee to
provide appropriate notification of the opening of any escrow for the
sale of the property for which the building permit was issued and to
provide in the escrow instructions that the fee or charge be paid to
the local agency imposing the same from the sale proceeds in escrow
prior to disbursing proceeds to the seller.

Historically, the County has not entered into any contract to allow the deferral of impact fees past the time of issuance of a building permit, and it is recommended that building fees be collected at the time of issuance of a building permit. 

It is recommended that the Board of Supervisors:

1. Read the title of the ordinance,, "An Ordinance of the County of San Benito Amending Sections 5.01.259, 5.01.291 and 5.01.320 of the San Benito County Code Regarding the Time for Payment of Impact Fees"  (this may be done by staff.)

2. Make a motion to accept introduction, waive further reading of the ordinance, and continue the matter to September 13, 2016, at 10:00 a.m., for adoption.