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This section shall become applicable to development within that area which is within the boundaries of a Fire Agency and the incorporated area of the City when the following events occur:

a. The governing body of a Fire Agency adopts a resolution making the following findings:

1. The Agency does not have existing fire protection facilities and equipment which could be used to provide an adequate level of services to new development within the Agency’s boundaries.

2. The Agency does not have sufficient funds available to construct additional facilities from fund balances, capital facility funds, property tax sources, fire suppression assessments, or any other appropriate sources.

3. The lack of fire protection facilities and equipment to serve new development would create a situation perilous to the public health and safety if fire mitigation fees are not levied within the Agency’s district.

b. The governing body of a Fire Agency resolves as follows:

1. The Agency requests that the City collect a specified percentage of the fire mitigation fee ceiling on the Agency’s behalf from applicants for building permits or other permits for development.

2. Mitigation fees paid under this section shall only be used to expand the availability of capital facilities and equipment to serve new development.

3. The Agency shall place all funds received by development in the City under this section, and all interest subsequently accrued by the Agency on these funds, in a separate budget accounting category to be known as the “City of Clearlake Fire Mitigation Fee”.

4. The Agency shall expend funds from the “City of Clearlake Fire Mitigation Fee” budget accounting category only for those purposes of providing capital facilities and equipment to serve new development.

5. The Agency shall submit a Fire Mitigation Fee Annual Report no later than October 31 of each year to the City Clerk. Said report shall include, but not be limited to, the balance in the account at the end of the previous fiscal year, the fee revenue received, the amount and type of expenditures made, and the ending balance in the fund. In addition, the report shall specify the actions the Agency plans to take to alleviate the facility and equipment needs caused by new development in a capital fire facilities and equipment plan adopted at a noticed public hearing. The Agency shall make available, upon request by the City Clerk, a copy of its annual audit report.

6. The Agency shall make its records available to the public on request which justify the basis for the fee amount.

7. The Agency shall hold the City harmless for any errors made by the City in collecting or transmitting the fees to the Agency.

8. The Agency shall make findings, with respect to any portion of the fee remaining unexpended or uncommitted in its account five (5) or more years after deposit of the fee, to identify the purpose to which the fee is to be put and to demonstrate a reasonable relationship between the fee and the purpose for which it was charged. The Agency shall refund to the then current record owner or owners of the development project or projects on a prorated basis, the unexpended or uncommited portion of the fee and any interest accrued thereon, for which need cannot be demonstrated.

c. The governing body of the Fire Agency adopts a Capital Fire Facility and Equipment Plan in accordance with Government Code Section 66002 at a noticed public hearing.

d. The governing body of the Fire Agency shall send a certified copy of the Resolution and the Capital Fire Facility and Equipment Plan to the City Clerk. The City Clerk shall agendize said Resolution and capital fire facilities and equipment plan for the City Council’s approval at a public hearing noticed in the manner required by Government Code Section 66002(b). At the close of the public hearing thereon, the City Council may approve said Resolution and Capital Fire Facilities and Equipment Plan if it finds that said documents meet the requirements of this section, the City of Clearlake General Plan and Government Code Section 66000 et seq. If the City Council approves said resolution and Capital Fire Facilities and Equipment Plan, the City Clerk shall immediately transmit a copy of the approved documents to the Director. The provisions of this section shall be applicable to all building permits and other permits issued for new construction within the boundaries of the Fire Agency thirty (30) days after the City Council’s approval. (Ord. #36-93, S1)