HomeMy WebLinkAbout2025-47 - Traffic Impact FeeRESOLUTION N0. 2025-47
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
CAPIT AL IMPROVEMENT PLAN FOR TRANSPORT ATION 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 201 8; 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
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
Resolution No. 2025-47 Page 1 of 7
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 3,
2025 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
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, 2025, which is attached
hereto as Exhibit "A" and incorporated herein; and
Resolution No. 2025-47 Page 2 of 7
WHEREAS, pursuant to California Government Code section 66006, the audit was
available for public inspection and review at least fifieen (15) days prior to the City Council
review of the audit on December 2, 2025 and notice was mailed to all interested parties on
record at least fifteen (15) days prior to the public hearing held on December 2, 2025; and
WHEREAS, the City Council conducted a public hearing on December 2, 2025,
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
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
Resolution No. 2025-47 Page 3 of 7
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 $231.00 per each new average daily
vehicle trip end generated by all new commercial, industrial and residential
developments. To encourage active transportation in Costa Mesa, staff shall
provide a five percent (5%) 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.
Resolution No. 2025-47 Page 4 of 7
d. Staff may allocate up to ten percent (1 0%) 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 3, 2025 City Council meeting pursuant to Government Code section 66002.
Resolution No. 2025-47 Page 5 of 7
PASSED AND ADOPTED this znd
John Stephens, Mayor
ATTEST:
!'n%"yClerk
APPR6VED A TO FORM:
aj
Kitnberly Hall Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF COSTA MESA )
SS
1, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 2025-47 and was duly passed
and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the
2nd day of December, 2025, by the following roll call vote, to wit:
AYES:COUNCIL MEMBERS: BULEY, GAMEROS, MARR, PETTIS, REYNOLDS, CHAVEZ,
AND STEPHENS.
NOES:COUNCIL MEMBERS: NONE.
ABSENT: COUNCIL MEMBERS: NONE.
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City
of Costa Mesa this 3rd day of December, 2025.
B!rendaGkreen, (!;lykClerk
Resolution No. 2025-47 Page 6 of 7
FISCAL YEAR 2024-2025
CITY OF COSTA MESA
CITYWIDE TRAFFIC IMPACT FEE ACCOUNT
Fund Balance as of June 30, 2025
Audited Beginning Fund Balance as of July 1, 2024,including Cannabis TIF fund
1. Revenues
Fiscal Year 24-25 Traffic Impact Fees
Investment Earnings
GASB 31 Fair Market Value adjustment on Investment
Misc/Other Reimbursement
Revenue Subtotal
Cannabis Traffic Impact Fees Revenue
FY24-25 Cannabis Traffic Impact Fees
Investment Earnings for Cannabis Traffic Impact Fees
GASB 31 Fair Market Value adjustment for Cannabis TIF Investment
Cannabis Traffic Impact Fees Revenue Subtotal
2. Expenditures
Bicycle Racks Citywide
Class II and Ill Bicycle Projects
Adams at Pinecreek Intersection Improvements
Bicycle/Pedestrian Infrastructure Improvement
Fairview Road Improvement Project
Baker/ Placentia/ 1 9th/ Victoria TSSP
Adams Ave Bicycle Facility Project
3. Refunds
Amount offunds expended or
uncommitted after 5 years
4. Administrative Costs
5. Fund Balance, including Cannabis TIF fund, as of June 30, 2025
6. Projects Current and Future Appropriations
Bicycle Racks Citywide
Class II and Ill Bicycle Projects
Adams at Pinecreek Intersection Improvements
Mesa Del Mar Multimodal Access
Baker/ Placentia/ 1 9th/ 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
7. Unallocated Traffic Impact Fee Fund Balance
5,126,122
554,731
139,154
61 ,768
800,513
18,753
17,525
8,582
44,859
1 ,584,597
3,427
116,599
1 ,248,255
56,707
13,714
2 3,049
122,846
4,342,038
4,033,559
308,479
Resolution No. 2025-47 Page 7 of 7