In a dispute over a traffic impact fee imposed on a residential building permit by El Dorado County, the U.S. Supreme Court unanimously rejected the long-standing position of California and other state courts that the Takings Clause of the U.S. Constitution applies differently when permit conditions are imposed legislatively rather than administratively. Sheetz v. County
Exactions and Assessments
Agreement Purporting to Prevent City from Imposing New Impact Fees on Project Infringed Police Powers
The Court of Appeal held that a city-developer agreement that ostensibly precluded the City of Oakland from imposing any new impact fees on the project constituted an impermissible infringement of the City’s police power. Discovery Builders Inc v City of Oakland, 92 Cal. App. 5th 799 (2023).
In 2004, the City approved a development with…
Court Orders Refund of All Unexpended Fees in Landmark Mitigation Fee Act Case
A recent case involving developer Charles Keenan and the City of Palo Alto highlights the importance of strict compliance with Mitigation Fee Act’s requirement that findings be made every five years concerning unexpended fees. The court held that the City’s failure to make such findings within the statutory deadline mandated refund of all unexpended fees…
Suit Challenging City’s Interpretation of 20-Year-Old Affordable Housing Agreement Was Timely
The Court of Appeal ruled that a suit concerning an affordable housing fee that plaintiff had agreed to pay two decades earlier was still timely because the 90-day limitations period under the Subdivision Map Act did not begin to run until a dispute arose over the interpretation of provisions in the affordable housing agreement. Schmeir…
Water District Rate Increases Violated Proposition 218
A court of appeal invalidated a water district’s adopted rate increases, concluding that the district failed to meet its burden under Proposition 218 of establishing that the increases did not exceed the cost of providing the water service. KCSFV I, LLC v. Florin County Water District, No. C088824 (3rd Dist., May 28, 2021).
Following…
Requirement That Proposed Development Mitigate Cumulative Traffic Impacts Violated Nollan/Dolan Standard
An initiative measure that required new development to mitigate not only its individual traffic impacts but also cumulative impacts of other projects on traffic levels of service violated the rough-proportionality standard of Nollan and Dolan and was therefore unconstitutional. Alliance for Responsible Planning v. Taylor (County of El Dorado, No. C085712 (3rd Dist., May…
Suit Challenging Water District’s Ad Valorem Property Tax Was Time-Barred Under the Validation Statutes
A challenge to a water district’s increase in its ad valorem property tax was untimely under the 60-day statute of limitations in the validation statutes. Coachella Valley Water District v. Superior Court (Roberts), No. E074010 (4th Dist., March 9, 2021).
Code of Civil Procedure sections 860-870 provide for accelerated procedures for determining the validity…
Agreement to Indemnify LAFCO Against Claims Arising from Annexation Decision Was Unenforceable as Lacking Consideration
The Court of Appeal held that an agreement obligating a developer and city to indemnify LAFCO against claims arising from its annexation decision lacked consideration because the agreement simply required LAFCO to do what it was already obligated to do by statute. San Luis Obispo Local Agency Formation Commission v. City of Pismo Beach,…
Local Governments Lacked Authority to Impose Fees on Property Owners for Trash Receptacles at Public Transit Stops Adjacent to Their Properties
The state was required to reimburse municipalities for the cost of state-mandated trash receptacles at transit stops because local governments lacked authority under Proposition 218 to impose fees either on transit agencies or on owners of adjacent property to recover such costs. Department of Finance v. Commission on State Mandates, No. B292446 (2nd Dist.,…
School District May Assess Fees Based on General Type of Development and Need Not Consider Subtypes
A school district may impose reasonable school impact fees based on the general type of development, regardless of whether the specific subtype of development will or will not generate new students. AMCAL Chico, LLC v. Chico Unified School District, No. C08700 (3rd Dist., Nov. 5, 2020).
AMCAL constructed a private dormitory complex intended to…