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HomeMy WebLinkAbout18-79 - Annual Review of the Citywide Traffic Impact FeeRESOLUTION NO. 18-79 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 THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, California Government Code section 66000 et seq. enable 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, the City most recently established a traffic impact fee of One Hundred Eighty -One Dollars ($181.00) based on a Traffic Impact Fee Study conducted in 2011; 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 was charged; (3) identifying sources and amounts of funding anticipated to complete financing in 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 Resolution No. 18-79 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, 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 circulation 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, a primary purpose of this resolution is to continue the traffic impact fee based on the updated 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 public 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 Services Department has conducted an audit of the accounts for the traffic impact fee program for the fiscal year ending June 30, 2018, which is attached hereto as Exhibit "A" and incorporated herein by this reference; and Resolution No. 18-79 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 13, 2018, and notice was mailed to all interested parties on record at least fifteen (15) days prior to the public hearing held on November 13, 2018; and WHEREAS, the City Council conducted a public hearing on November 13, 2018, 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, BE IT RESOLVED that the City Council of the City of Costa Mesa finds that: 1. The foregoing recitals are true and correct and are incorporated herein by reference. 2. The purpose of the traffic impact fee is to fund transportation/circulation 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. 3. The fee will be used to fund transportation and circulation improvements within the City of Costa Mesa. 4. 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. 5. 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, Resolution No. 18-79 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. 6. There is no portion of the fees deposited into the traffic impact fee fund that remains unexpended. 7. The capital improvement plan is adequate to provide the facilities forwhich the traffic impact fee is charged and does not need to be amended. 8. The audit by the Public Services 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. BE IT FURTHER RESOLVED that the City Council of the City of Costa Mesa does hereby renew the traffic impact fee and establish traffic impact fee regulations as follows: 1. The traffic impact fee shall be a fee of $235.00 per each new average daily vehicle trip end generated by all new commercial, industrial and residential developments. 2. 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. 3. Staff may allocate up to ten percent (10%) of traffic impact fees towards traffic signal synchronization projects, and up to five percent (5%) of traffic impact fees towards active transportation projects. BE IT FURTHER RESOLVED that the City Council of the City of Costa Mesa does hereby terminate the City's incentive program for new developments. BE IT FINALLY RESOLVED that the City Council of the City of Costa Mesa does hereby adopt the comprehensive transportation/circulation system capital improvement plan as identified in the updated 2018 Traffic Impact Fee Study pursuant to Government Code section 66002. PASSED AND ADOPTED this 13th day of November, 2018. Resolution No. 18-79 ti and . Genis, Mayor ATTEST: Brenda Green, ity Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) 1OV D S TO FORM: as . Dua e, City Attorney I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 18-79 and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 13th day of November, 2018, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: Foley, Stephens, Genis NOES: COUNCIL MEMBERS: Righeimer, Mansoor ABSENT: COUNCIL MEMBERS: None IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 14th day of November, 2018. " aL4A Brenda Green, dity Clerk Resolution No. 18-79 CITY OF COSTA MESA CITYWIDE TRAFFIC IMPACT FEE ACCOUNT Fund Balance as of June 30, 2018 FISCAL YEAR 2017-2018 Exhibit A Beginning Fund Balance July 1, 2017 $3,377,409 1. Revenues Traffic Impact Fees $878,865 Investment Earnings $4,203 Misc / Other Reimbursement $0 Revenue Subtotal $883,068 2. Expenditures $1,227 3. Refunds $0 Amount of funds expended or uncommitted after 5 years $0 4. Administrative Costs $0 5. Fund Balance as of June 30, 2018 $4,259,250 6. Measure M2 Projects Current and Future Appropriations $1,618,229 Newport Boulevard Widening (19th to 17th) Wilson Street Widening West 17th Street Widening Harbor - South Coast Hyland - MacArthur Resolution No. 18-79