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HomeMy WebLinkAbout2020-60 - Annual Traffic Impact FeesRESOLUTION NO. 2020-60 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 December 17, 2019, 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 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 Resolution No. 2020-60 Page 1 of 7 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 28, 2020 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. 2020-60 Page 2 of 6 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, 2020, 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 17, 2020, and notice was mailed to all interested parties on record at least fifteen (15) days prior to the public hearing held on November 17, 2020; and WHEREAS, the City Council conducted a public hearing on November 17, 2020, 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. 2020-60 Page 3 of 6 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 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. 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 $235.00 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 Resolution No. 2020-60 Page 4 of 6 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 18, 2020 City Council meeting pursuant to Government Code section 66002. Resolution No. 2020-60 Page 5 of 6 PASSED AND ADOPTED this 17th day of N ATTEST: .11.1 rja Brenda Green, ity Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) Kat r, 2020. Mayor APPROVED AS TO FORM: Kimberly Hall Barlow, 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. 2020-60 and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 17th day of November, 2020, by the following roll call vote, to wit: AYES: COUNCILMEMBERS: CHAVEZ, GENTS, MARK, REYNOLDS STEPHENS, AND FOLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: MANSOOR IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 18th day of November, 2020. aud-a- or Brenda Green, C4 Clerk Resolution No. 2020-60 Page 6 of 6 CITY OF COSTA MESA CITYWIDE TRAFFIC IMPACT FEE ACCOUNT Fund Balance as of June 30, 2020 FISCAL YEAR 2019-2020 Beginning Fund Balance July 1, 2019 1.Revenues Traffic Impact Fees Investment Earnings Misc / Other Reimbursement 2. Expenditures 3. Refunds Revenue Subtotal Amount of funds expended or uncommitted after 5 years 4. Administrative Costs 5. Estimated, Unaudited Fund Balance as of June 30, 2020 6. Projects Current and Future Appropriations Newport Boulevard Improvements (19th to 17th) West 17th Street Widening/Active Transportation Improvements Harbor - South Coast Bicycle Racks Citywide Class II and III Bicycle Projects Adams at Pinecreek Intersection Improvements Fairview Traffic Signal Synchronization Bear Traffic Signal Synchronization Merrimac Way Active Transportation Improvements $4,551,499 $259,298 $174,806 $0 $434,104 $295,544 $0 $0 $0 $4,690,059 $2,057,135