HomeMy WebLinkAbout2024-48 - Annual Review of Traffic Impact FeesRESOLUTION NO. 2024-48
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, CONTINUING THE CITYWIDE TRAFFIC IMPACT FEE FOR NEW
DEVELOPMENT IN THE CITY OF COSTA MESA AND CONDUCTING THE RELATED
ANNUAL REVIEW OF THE CITYWIDE TRAFFIC IMPACT FEE PROGRAM AND
CAPITAL IMPROVEMENT PLAN FOR TRANSPORTATION IMPROVEMENTS
WHEREAS, California Government Code section 66000 et seq. enables cities to
charge fees for transportation facilities; and
WHEREAS, Section 13-274 of the Costa Mesa Municipal Code authorizes the City
Council to, by resolution, establish a development impact fee program based on the
capital improvement program; and
WHEREAS, in 1993, by Resolution No. 93-43, the City Council established a traffic
impact fee program and the rate of the traffic impact fee based upon a Traffic Impact Fee
Study; and
WHEREAS, each year since 1993, the City has continued the traffic impact fee
program; and
WHEREAS, on November 15, 2022, the City Council established a traffic impact
fee of Two Hundred Thirty -Five Dollars ($235.00) per Average Daily Trip (ADT) based
upon a Traffic Impact Fee Study completed in 2018; and
WHEREAS, California Government Code section 66001(d) requires the City to
make specified findings every five years with respect to any portion of the traffic impact
fees collected that remain unexpended in its account, including (1) identifying the purpose
to which the fee is to be put; (2) demonstrating a reasonable relationship between the fee
and the purpose for which it is charged; (3) identifying all sources and amounts of funding
anticipated to complete financing of incomplete improvements; and (4) designating
approximate dates on which the anticipated funding is expected to be deposited into the
appropriate account; and
WHEREAS, California Government Code section 66002(b) further requires a
separate annual review and update of the City's capital improvement plan for
improvements to be paid for by traffic impact fees; and
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WHEREAS, California Government Code section 66006(b) requires the City to
make available to the public within 180 days of the last day of the fiscal year certain
information, including but not limited to, a description of the type of fee, the amount of the
fee, the amount of fees collected and the interest earned thereon, identification of each
public improvement on which fees were expended and the amount of the expenditures
on each improvement, identification of an approximate date by which the construction of
the public improvement will commence if the City determines that sufficient funds have
been collected to complete financing of an incomplete public improvement, and the
beginning and ending balance of the traffic impact fee account or fund for the previous
fiscal year; and
WHEREAS, the 2016 General Plan requires the City to maintain a traffic impact
fee for improvements to the Master Plan of Streets and Highways and that the City review
and update the fees on a regular basis; and
WHEREAS, pursuant to the 2016 General Plan and the Costa Mesa Municipal
Code, the City has elected to conduct the review of traffic impact fees required by
California Government Code section 66001(d) on an annual basis in conjunction with its
review of the capital improvement plan required by California Government Code section
66002(b) and the annual accounting required by California Government Code section
66006(b)(1); and
WHEREAS, the City reviewed and updated the capital improvement plan on June
4, 2024 in connection with its Measure M2 reporting; and
WHEREAS, a primary purpose of this resolution is to continue the traffic impact
fee based on the 2018 Traffic Impact Fee Study and to enable the City to continue the
traffic impact fee; and
WHEREAS, the traffic impact fee is necessary because new development
increases the need for transportation/circulation facilities in the City of Costa Mesa not
only during peak periods, but throughout the day, and the City transportation/circulation
system will be burdened by the demands of carrying vehicles of a larger number of
persons and cargo due to new commercial, industrial, and residential uses; and
WHEREAS, the 2015-2035 General Plan as well as Environmental Impact Report
No. 1049 indicate that development of new commercial, industrial and residential uses is
Resolution No. 2024-48 Page 2 of 7
expected to exceed current commercial, industrial and residential uses and, accordingly,
the City transportation/circulation systems will need to be increased in capacity to carry
the increase in the number of vehicles due to new commercial, industrial and residential
uses; and
WHEREAS, the Public Works Department has conducted an audit of the accounts
for the traffic impact fee program for the fiscal year ending June 30, 2024, which is
attached hereto as Exhibit "A" and incorporated herein; and
WHEREAS, pursuant to California Government Code section 66006, the audit was
available for public inspection and review at least fifteen (15) days prior to the City Council
review of the audit on November 19, 2024 and notice was mailed to all interested parties
on record at least fifteen (15) days prior to the public hearing held on November 19, 2024;
and
WHEREAS, the City Council conducted a public hearing on November 19, 2024,
received testimony and evidence from interested parties in the City of Costa Mesa, and
has evaluated justification for renewal of the traffic impact fee given economic and social
factors, as well as average fees charged by surrounding cities.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA
HEREBY FINDS, DETERMINES, AND RESOLVES AS FOLLOWS:
Section 1. The City Council hereby finds that:
a. The foregoing recitals are true and correct and are incorporated herein by
reference.
b. The purpose of the traffic impact fee is to fund transportation/circulation
improvements including active transportation improvements within the City
of Costa Mesa which are directly related to the incremental traffic/vehicle
burden imposed upon the City transportation/circulation system by the
development of new commercial, industrial and residential uses.
C. The fee will be used to fund transportation and circulation improvements
within the City of Costa Mesa.
d. There is a reasonable relationship between the traffic impact fee's use and
the development projects on which the fee is imposed because the
transportation/circulation facilities funded by the fee are needed to
Resolution No. 2024-48 Page 3 of 7
accommodate the incremental new traffic/vehicle burdens generated by the
development of new commercial, industrial and residential uses upon which
the fee is imposed.
e. There is a reasonable relationship between the need for the
transportation/circulation facilities and the development of new commercial,
industrial and residential projects upon which the fee is imposed because
the new development projects paying the fee will receive a direct benefit
from the transportation/circulation facilities funded by the fee; the
transportation/circulation facilities funded by the fee will increase
traffic/vehicle circulation capacity on streets and highways directly
burdened by the increase in traffic/vehicles generated by new development
projects upon which the fee is charged; the cost of transportation/circulation
facilities attributed to existing deficiencies, existing land uses and
population, excess and reserve capacity, and regional transportation needs
have been excluded from the fee calculation, and such costs are not
included in the fee to be paid by the development.
f. There is no portion of the fees deposited into the traffic impact fee fund that
remains unexpended.
g. The capital improvement plan is adequate to provide the facilities for which
the traffic impact fee is charged and does not need to be amended.
h. The audit by the Public Works Department set forth in Exhibit "A" accurately
reflects the balance of the traffic impact fee account on the fees collected,
the interest thereon, and other income and amount of expenditures and
refunds of the traffic impact fee made by the City of Costa Mesa during the
prior fiscal year.
Section 2. The City Council of the City of Costa Mesa hereby renews the traffic
impact fee and establishes traffic impact fee regulations as follows:
a. The traffic impact fee shall be a fee of $228.00 per each new average daily
vehicle trip end generated by all new commercial, industrial and residential
developments, effective on January 1, 2025. To encourage active
transportation in Costa Mesa, staff shall provide a five percent (5%)
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reduction in ADT development trips for active transportation project benefits
and may provide an additional five percent (5%) reduction in ADT
development trips for a development project which proposes to implement
active transportation improvements beyond those which would ordinarily be
required by the City as a condition of approval for such development project.
b. The traffic impact fee established pursuant to this resolution shall be
collected and administered in accordance with all requirements of California
Government Code section 66000 et seq., the Costa Mesa Municipal Code
and prior resolutions of the City Council.
C. There shall be no limitation on the amount of traffic impact fees which may
be allocated toward active transportation projects.
d. Staff may allocate up to ten percent (10%) of traffic impact fees towards
traffic signal synchronization projects.
Section 3. The City Council of the City of Costa Mesa hereby approves the
updated comprehensive transportation/circulation system capital improvement plan as
identified at the June 4, 2024 City Council meeting pursuant to Government Code section
66002.
Resolution No. 2024-48 Page 5 of 7
ATTEST:
Kimberly Hall 13*16w, City Attorney
ORANGESTATE OF CALIFORNIA
COUNTY OF
COSTACITY OF A
BRENDA GREEN, City Clerkof of i DO HEREBY CERTIFY
that the .!•.r and foregoing is the original of ! • No. 48 and was duly passed
and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the
•th day of ! r • 2024, by • ! •i roll • `
AYES: COUNCIL MEMBERS: CHAVEZ, GAMEROS, HARPER, MARR, AAR&A, AMD
STEPHENS.
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City
of Costa Mesa this 20th day of November, 2024.
CITY OF COSTA MESA
CITYWIDE TRAFFIC IMPACT FEE ACCOUNT
Fund Balance as of June 30, 2024
FISCAL YEAR 2023-2024
Amount of Traffic Impact Fee 235
Beginning Fund Balance July 1, 2023 5,840,901
Prior Year's Cannabis Traffic Impact Fees was included in the beginning fund balance (217,892)
Adjusted Fund Balance July 1, 2023 5,623,009
1.Revenues
Fiscal Year 23-24 Traffic Impact Fees 39,292
Investment Earnings 138,455
GASB 31 Fair Market Value adjustment on Investment 69,611
Misc / Other Reimbursement -
Revenue Subtotal 247,358
Cannabis Traffic Impact Fees Revenue
Prior Year's Cannabis Traffic Impact Fees recorded in Fund 214
217,892
Prior Year's Cannabis Traffic Impact Fees recorded in Fund 240
432,659
FY23-24 Cannabis Traffic Impact Fees
91,309
Investment Earnings for Cannabis Traffic Impact Fees since 2022
18,817
GASB 31 Fair Market Value adjustment for Cannabis TIF Investment since 2022
5,312
Cannabis Traffic Impact Fees Revenue Subtotal 765,989
2. Expenditures 1,490,324
Class II and III Bicycle Projects
861,298
Bicycle/ Pedestrian Infrastructure Improvement
2,459
Fairview Road Improvement Project
3,850
Baker/ Placentia/ 19th/ Victoria TSSP
68,810
West 19th Wallace Ave Traffic Signal
181,157
West 18th & Wilson Crosswalks
372,750
3. Refunds -
Amount of funds expended or
uncommitted after 5 years
4. Administrative Costs
5. Fund Balance, including Cannabis TIF fund, as of June 30, 2024 5,146,031
6. Projects Current and Future Appropriations 4,898,160
Bicycle Racks Citywide
Class II and III Bicycle Projects
Adams at Pinecreek Intersection Improvements
Mesa Del Mar Multimodal Access
Baker/ Placentia/ 19th/ Victoria TSSP
Bicycle/ Pedestrian Infrastructure Improvement
Mesa Drive / Santa Ana Ave Bicycle Facility Improvement
Mesa Verde Drive East/ Peterson Place Class II Bicycle Facility
Fairview Road Improvement Project
Adams Ave Bicycle Facility Project
Projects Current and Future Appropriations for Cannabis Traffic Impact Fees 150,000
Bicycle/ Pedestrian Infrastructure Improvement
Resolution No. 2024-48 Page 7 of 7