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HomeMy WebLinkAbout16 - PH-3 - Annual Review of the Citywide Traffic Im - 12/17/2019Costa Mesa Traffic Impact Fee Update Roadway and Intersection Improvement Cost Allocation Local Regional Total Local Regional Total 22-23 Newport (19th to 17th)Widen SB from 3 lanes to 4 lanes $9,300,000 11,114 6,160 17,274 $5,983,571 $3,316,429 $9,300,000 Future 17th (Orange to Tustin)Widen from 4 lanes to 6 lanes Future 17th (Pomona to Bluff)Widen from 2 lanes to 4 lanes Future Baker (Bear to Red Hill)Widen from 4 lanes to 6 lanes $7,210,298 5,120 2,786 7,906 $4,669,457 $2,540,841 $7,210,298 Future Bear (I-405 Overcrossing)Widen from 4 lanes to 6 lanes Future Del Mar/University (Elden to Santa Ana)Widen from 2 lanes to 4 lanes Future Wilson (Fairview to College)Widen from 2 lanes to 4 lanes Future Wilson (Newport to Fairview)Widen from 2 lanes to 4 lanes Future Wilson (Harbor to Placentia)Widen from 2 lanes to 4 lanes $16,510,298 16,234 8,946 25,180 $10,653,028 $5,857,270 $16,510,298 Future 2. Harbor & Sunflower Add WBR and EBR $914,400 4,982 2,859 7,841 $580,990 $333,410 $914,400 Future 9. Bristol & Sunflower Add NBL $1,130,733 7,038 4,344 11,382 $699,183 $431,550 $1,130,733 Future 17. Hyland & South Coast/I-405 NB On-Ramp Add WBT $863,273 1,901 604 2,505 $655,123 $208,150 $863,273 Future 18. Harbor & South Coast Add EBR $1,669,800 7,830 3,157 10,987 $1,190,000 $479,800 $1,669,800 Future 30. Hyland & MacArthur Add NBL and NBR $261,938 2,003 1,797 3,800 $138,069 $123,869 $261,938 Future 42. Bristol & I-405 NB Ramps Add WBR $90,000 13,117 5,615 18,732 $63,022 $26,978 $90,000 Future 44. Harbor & Gisler Add SBR and EBL $4,895,070 9,893 4,259 14,152 $3,421,914 $1,473,156 $4,895,070 Future 49. Bristol & Paularino Add WBL $300,210 6,710 1,690 8,400 $239,811 $60,399 $300,210 Future 51. SR-55 SB Ramps & Paularino Add SBR $413,730 1,845 2,631 4,476 $170,539 $243,191 $413,730 Future 52. SR-55 NB Ramps & Paularino Add WBR $642,750 1,649 2,504 4,153 $255,212 $387,538 $642,750 Future 65. SR-55 SB Ramps & Baker Add SBR $625,350 3,477 2,446 5,923 $367,101 $258,249 $625,350 Future 66. SR-55 NB Ramps & Baker Add NBL and EBL $1,370,325 2,728 2,001 4,729 $790,494 $579,831 $1,370,325 Future 84. Harbor & Adams Add NBL and NBR $6,037,350 10,600 3,803 14,403 $4,443,235 $1,594,115 $6,037,350 Future 101. Newport NB & Del Mar Add WBR $131,475 2,934 2,406 5,340 $72,237 $59,238 $131,475 Future 129. Newport NB & 22nd Add WBT and NBL $15,000 3,332 2,625 5,957 $8,390 $6,610 $15,000 Future 134. Placentia & 19th Add SBR $386,280 6,409 1,423 7,832 $316,097 $70,183 $386,280 Future 140. Newport Boulevard & 19th Street Add NBT and free SBR Future 151. Superior & 17th Add WBL and NBR $662,865 7,133 2,160 9,293 $508,793 $154,072 $662,865 23-24 152. Newport & 17th Add NBR $444,675 10,202 5,079 15,281 $296,877 $147,798 $444,675 Future 156. Irvine & 17th Addd SBR and EBR $793,845 3,760 1,777 5,537 $539,075 $254,770 $793,845 $21,649,069 107,543 53,180 160,723 $14,756,161 $6,892,908 $21,649,069 $38,159,367 123,777 62,126 185,903 $25,409,189 $12,750,178 $38,159,367 Traffic Impact Fee Fund Balance $4,551,499 Home Ranch TIF Funds $1,698,450 Subtotal $2,853,049 Local Cost Allocation with above subtracted $22,556,140 Active Transportation Projects $21,561,000 Total Local Share Costs and Active Transportation Projects $44,117,140 CIP FY TOTAL Cost Allocation ROADWAYS Location Improvement Estimated Cost New Daily Trip Ends Sub-Total INTERSECTIONS Sub-Total Attachment 2 Costa Mesa Traffic Impact Fee Update Roadway and Intersection Improvement Cost Allocation Local Regional Total Local Regional TotalCIP FY Cost Allocation Location Improvement Estimated Cost New Daily Trip Ends 227,767 $228 ROADWAY AND INTERSECTION IMPROVEMENTS IN GENERAL PLAN AND EXCLUDED FROM TRIP FEE PROGRAM 17th (Orange to Tustin)Widen from 4 lanes to 6 lanes $15,380,115 17th (Pomona to Bluff)Widen from 2 lanes to 4 lanes $7,435,650 Bear (I-405 Overcrossing)Widen from 4 lanes to 6 lanes $5,408,220 Del Mar/University (Elden to Santa Ana)Widen from 2 lanes to 4 lanes $34,971,150 Wilson (Fairview to College)Widen from 2 lanes to 4 lanes $15,058,750 Wilson (Newport to Fairview)Widen from 2 lanes to 4 lanes $2,525,753 Wilson (Harbor to Placentia)Widen from 2 lanes to 4 lanes $25,555,350 140. Newport Boulevard & 19th Street Add NBT and free SBR $23,912,528 TOTAL $130,247,516 New Costa Mesa Trips Generated at General Plan Buildout Citywide Fee with ATP projects and 15% reduction in ADT trips CITY OF COSTA MESA CHRONOLOGY OF TRAFFIC IMPACT FEE ACTIONS Date Adopted Resolution Number Area of Benefit Applicable Fees 7-June-1993 93-43 City-wide $228 per daily trip end based on the exclusion of all freeway improvements 20-June-1994 94-59 City-wide $228 per daily trip end based on the exclusion of all freeway improvements 1-May-1995 95-35 City-wide $200 per daily trip end based on the inclusion of freeway improvements 17-June-1996 96-57 City-wide $200 per daily trip end based on the inclusion of freeway improvements 20-January-1997 97-15 Newport Bl. Spec. Plan Area Incentive program for developments in Newport Boulevard Specific Plan Area Trip fees range from $33 to $108 per ADT based on project-related conditions. 16-June-1997 97-51 City-wide $150 per daily trip end based on the inclusion of freeway improvements 15-June-1998 98-64 City-wide $150 per daily trip end based on the inclusion of freeway improvements 4-January-1999 99-2 City-wide Incentive program for first 100 trips 0-25 ADT - $0 25-50 ADT - $50 50-75 ADT - $75 75-100 ADT - $100 >100 ADT - $150 7-June-1999 99-35 City-wide $149 per daily trip end based on inclusion of freeway improvements 7-June-1999 99-36 City-wide Incentive program for the first 100 trips 19-June-2000 00-52 District 1 District 2 $195 per daily trip end (areas north of I-405 and SR-73 Freeways) and incentive program for the first 100 trips $149 per daily trip end (areas south of I-405 and SR-73 Freeways) and incentive program for the first 100 trips Fees based on inclusion of freeway improvements 4-June-2001 01-34 District 1 District 2 $195 per daily trip end (areas north of I-405 and SR-73 Freeways) and incentive program for the first 100 trips $149 per daily trip end (areas south of I-405 and SR-73 Freeways) and incentive program for the first 100 trips Fees based on inclusion of freeway improvements 15-April-2002 02-27 Citywide Traffic Impact Fee Study Update $177 per daily trip end and incentive program for the first 100 trips of the entire site 6-October-2003 03-62 Citywide $177 per daily trip end and incentive program for the first 100 trips of the entire site ATTACHMENT 3 CITY OF COSTA MESA CHRONOLOGY OF TRAFFIC IMPACT FEE ACTIONS Date Adopted Resolution Number Area of Benefit Applicable Fees 4-October-2004 04-59 Citywide $177 per daily trip end and incentive program for the first 100 trips of the entire site Suspension of incentive program for Newport Boulevard Specific Plan Area 20-September-2005 05-70 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 17-October-2006 06-85 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 16-October-2007 07-77 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site Exemption of preschool and daycare facilities from traffic impact fee program (consider as part of exempt school facilities) 21-October-2008 08-81 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 20-October-2009 09-67 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 19-October-2010 10-70 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 18-October-2011 11-42 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 20-November-2012 12-73 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 11-November-2013 13-54 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 18-November-2014 14-73 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 1-December-2015 15-66 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 3-January-2017 17-02 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 21-November-2017 17-76 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 14-November-2018 18-79 Citywide $235 per daily trip end, up to 10% for signal synchronization projects, and up to 5% for active transportation projects. Terminate incentive program for new developments on an incremental basis for the first 100 trips. 1 CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 17, 2019 ITEM NUMBER: PH-3 SUBJECT: ANNUAL REVIEW OF THE CITYWIDE TRAFFIC IMPACT FEE PROGRAM DATE: DECEMBER 11, 2019 FROM: PUBLIC SERVICES DEPARTMENT/TRANSPORTATION SERVICES DIVISION PRESENTATION BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR FOR FURTHER INFORMATION CONTACT: JENNIFER ROSALES, TRANSPORTATION SERVICES MANAGER - (714) 754-5343 RECOMMENDATION: Staff recommends that the City Council adopt the proposed resolution, 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 (Attachment 1). The resolution incorporates the recommendations from the Traffic Impact Fee Ad Hoc Committee and staff, which include: 1. Continue a traffic impact fee of $235 per Average Daily Trip (ADT) based on the Capital Improvement Projects in Attachment 2 and inclusion of Active Transportation projects; 2. Approve allocation of up to 10% of traffic impact fees towards traffic signal synchronization projects; 3. Remove the 5% cap on Active Transportation Plan (ATP) Projects to allow for additional active transportation projects; and 4. Approve a five percent (5%) reduction in automobile trips as a result of ATP implementation and an additional five percent (5%) reduction in automobile trips for developments proposing to implement active transportation improvements beyond typical development requirements. BACKGROUND: Pursuant to California Government Code Section 66000, et seq. and the Costa Mesa Municipal Code, a traffic impact fee study is required by the City to establish a basis for the imposition of Citywide traffic impact fees on new and expanding developments within the City. The purpose of the fee is to fund the necessary transportation/circulation improvements which are related directly to the incremental traffic impacts imposed on the City’s transportation system by the development of new and/or changing commercial, industrial, and residential uses as permitted by the General Plan. The fee also maintains compliance with the eligibility requirements of the Orange County Transportation Authority’s (OCTA) Renewed Measure “M2” Program (Measure “M2”). 2 The City Council has reviewed the Citywide Traffic Impact Fee Program each year since the fee program was first adopted in 1993. The City Council, in July 1993, also approved the formation of an Ad Hoc Committee consisting of representatives from various stakeholder groups to work with staff on all aspects related to the revision and updating of traffic impact fees. The City Council subsequently appointed an Ad Hoc Committee consisting of members representing large and small developers, the Chamber of Commerce, citizens-at-large, as well as members representing the City Council and the Planning Commission, to assist staff in the development and review of the traffic impact fee. The current Ad Hoc Committee members and their representation are as follows: Derek Givens (Chair) Small Developers Jason Kensey (Vice Chair) At Large George Sakioka Major Developers Tom Johnson Chamber of Commerce Vacant At Large City Council Liaisons: Mayor Pro Tem John Stephens Council Member Allan Mansoor (Alternate) Planning Commission Liaison: Commissioner Jon Zich The City Council, in June 2012, authorized a comprehensive review of the City’s General Plan, including the Land Use and Circulation Elements. The General Plan was completed and finalized in 2016. The last major update of the Traffic Impact Fee Study was completed in November 2018. The update took into account the most recent land use and circulation information contained in the 2016 General Plan update. The proposed General Plan circulation improvements identified in the new transportation model form the basis for the traffic impact fee update. A revised traffic impact fee calculation was conducted taking into account the 2016 General Plan and updated traffic analysis model. The estimated costs for various improvements were reviewed and updated using the most recent construction cost data. The Ad Hoc Committee, together with staff, reviewed all conditions and analyzed different trip fee scenarios. Several variations of improvement options were considered, and it was determined that trip fees in the range of $176 per ADT through $476 per ADT could be justified. Based on the review of all options in November 2018, the Ad Hoc Committee recommended the continuation of traffic impact fees at the then current rate of $181 per ADT. 3 On November 13, 2018, the City Council adopted Resolution 18-79, approving a traffic impact fee of $235 per Average Daily Trip (ADT), selecting a fee from the calculated range of between $176 and $476 per ADT. The City Council also approved up to 10% of traffic impact fees being allocated toward traffic signal synchronization projects and up to 5% of traffic impact fees being allocated toward Active Transportation projects. A chronology of actions taken by the City Council on the Citywide Traffic Impact Fee Program between the years of 1993 and 2018 is included in Attachment 3. ANALYSIS: The Traffic Impact Fee Ad Hoc Committee and staff met twice in October 2019 to review the traffic impact fee program and calculation. Recently completed projects, consideration of active transportation projects, and the available traffic impact fee fund balance were accounted for in this analysis. Historically, the traffic impact fee program has identified funding for roadway capacity enhancements with minimal emphasis on transit and active transportation modes. Recent changes in legislation make the consideration of other transportation impacts and benefits applicable in the assessment of traffic impact fees. For example, California SB 375 was enacted to reduce greenhouse gas emissions from vehicles through integrated transportation, land use, housing, and environmental planning. Under SB 375, the City must conform to a Sustainable Communities Strategy that provides a plan for meeting emissions reduction targets set forth by the California Air Resources Board. This requires transportation plans and their associated fee programs to consider non-vehicular modes of travel, such as transit, biking, and walking and the infrastructure needed to make these modes a viable option. Staff also requested the Committee’s input and support for use of traffic impact fees for traffic signal synchronization as well as active transportation projects. These projects have potential to improve traffic conditions either through increasing capacity or reducing vehicular traffic. Studies have shown that traffic signal synchronization projects have potential to reduce delays and improve corridor operations by almost 15 percent. Active transportation projects, by implementation of key bicycle and pedestrian projects, have the potential to reduce vehicular demand and reduce greenhouse gas emissions. The City’s Active Transportation Plan (ATP) has several strategies to enhance bicycle and pedestrian facilities in order to provide more transportation choices for the traveling public. The Ad Hoc Committee recommended continuing the use of traffic impact fees for traffic signal synchronization (up to ten percent) as well as including active transportation projects in the ATP. Upon completion of the review of the traffic impact fee program, it was determined that certain roadway improvements that provide only marginal benefits and/or have significant feasibility issues and impacts could be excluded from the traffic impact fee program at this time. This is based on consideration of Active Transportation projects in lieu of roadway capacity improvements. Attachment 3 provides a revised calculation of the traffic impact fee of $228 per ADT based on a revised list of capital improvement projects and the inclusion of Active Transportation projects. Following the above review and staff input, the Ad Hoc Committee recommended to continue the current traffic impact fee of $235 per Average Daily Trip (ADT) with the inclusion of Active Transportation projects in the Traffic Impact 4 Fee program. In addition, the Ad Hoc Committee recommended to continue the allocation of up to 10% of traffic impact fees towards traffic signal synchronization projects. The Ad Hoc committee reviewed the benefits of active transportation projects, including the potential for a reduction in vehicle demand. The Ad Hoc Committee recommended that a ten percent (10%) reduction in ADT be allowed to account for projected reduction in automobile trips with the implementation of active transportation projects in the City’s General Plan. The City Council reviewed and considered this recommendation at its December 3, 2019 regular meeting. The City Council directed staff and the City Attorney to review the proposed ten percent reduction in ADT for development trips and to clarify or revise this recommendation. Based on review by the City Attorney, the following clarifications and recommendations are proposed:  Provide a five (5) percent reduction in automobile trips for development projects due to the implementation of the Active Transportation Plan (ATP). This is because ATP was added to the City’s Circulation Element following the adoption of the General Plan. The traffic forecasts and recommendations were not revised to reflect the benefits that would be realized by the extensive network of ATP improvements included. The trip generation from standard manuals such as Institute of Transportation Engineers (ITE) allow for such reductions due to specific local conditions.  Provide an additional five percent reduction in ADT if a development proposes to implement active transportation improvements beyond typical code requirements. Such improvements have to be substantial such as addition of a multipurpose trail, conversion of lower-class facility to a higher-class facility, or enhanced pedestrian improvements in the vicinity of the project. Development Impact Fee Study: The City’s Finance Department, in association with other departments, will be conducting a comprehensive study of all development related fee programs in the City in 2020. As part of this study, the traffic impact fee program will be reviewed again. The Traffic Impact Fee Ad Hoc Committee will review findings from this study as part of the 2020 annual review of the traffic impact fee program. Annual Accounting of the Traffic Impact Fee: The annual accounting of the Citywide Traffic Impact Fee Program was approved by the City Council at its December 3, 2019 regular meeting. ALTERNATIVES CONSIDERED: The City Council has the option to choose a traffic impact fee rate anywhere in the range of $176 per ADT to $476 per ADT, based on the most recent update of the traffic impact fee analysis. An additional alternative is to not have a Citywide Traffic Impact Fee Program at all. This alternative, however, would make the City ineligible to receive funds from any of the competitive grant programs processed through the Orange County Transportation Authority’s Combined Transportation Funding Programs. The City Council could also increase or decrease the percent of traffic impact fees for traffic signal synchronization. The 5 City Council could also not approve the addition of active transportation projects to the traffic impact fee program. FISCAL REVIEW: The traffic impact fees fund only a portion of the required Citywide improvements, and alternative funding sources such as Measure ‘M,’ federal and state funds, and other City funds may be needed to fully fund the transportation improvements as required in the City’s General Plan Circulation Element. LEGAL REVIEW: The City Attorney’s Office has reviewed and approved the proposed resolution as to form. CITY COUNCIL GOALS & PRIORITIES: This project supports City Council Goal 2: Improve our Neighborhoods and Quality of Life and Goal 5: Improve Mobility and Parking. CONCLUSION: The Citywide Traffic Impact Fee Program had the last major update in 2018 and the Traffic Impact Fee Ad Hoc Committee reviewed the Traffic Impact Fee Program in October 2019 as part of the annual review. The Traffic Impact Fee Ad Hoc Committee recommended that the current traffic impact fee of $235 per ADT be continued with the inclusion of Active Transportation projects. In addition, the Ad Hoc Committee recommended continuing allocation of up to 10% of traffic impact fees toward traffic signal synchronization projects. Based on review by staff and the City Attorney, it is recommended that the automobile trip generation for development projects be reduced by five (5) percent due to the inclusion of Active Transportation projects in the City’s General Plan. In addition, provide developments that are incorporating substantial Active Transportation improvements beyond those required by code a further five (5) per cent reduction in the number of automobile trips. Staff requests City Council adoption of the proposed resolution incorporating the recommendations from the Traffic Impact Fee Ad Hoc Committee and staff. _________________________________ _________________________________ JENNIFER ROSALES RAJA SETHURAMAN Transportation Services Manager Public Services Director ________________________________ _________________________________ KELLY A. TELFORD, CPA KIMBERLY HALL BARLOW Finance Director City Attorney 6 ATTACHMENTS: 1 - Traffic Impact Fee Resolution 2 - Revised Traffic Impact Fee Calculation 3 - Chronology of City Council Actions 1 RESOLUTION NO. 19-xx 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. 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 13, 2018, 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 Attachment 1 2 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 25, 2019 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 3 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, 2019; 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 December 3, 2019, and notice was mailed to all interested parties on record at least fifteen (15) days prior to the public hearing held on December 3, 2019; and WHEREAS, the City Council conducted a public hearing on December 3, 2019, 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; and WHEREAS, the City Council approved the annual audit at its regular meeting on December 3, 2019 and continued the public hearing to December 17, 2019. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa 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 4 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 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. 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 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 5 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 25, 2019 City Council meeting pursuant to Government Code section 66002. PASSED AND ADOPTED this 17th day of December, 2019. ____________________________ Katrina Foley, Mayor ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney 6 THIS PAGE IS RESERVED FOR CITY CLERK’S OFFICE STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) 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. 19- __ 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 December, 2019, by the following roll call vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 17th day of December, 2019. ________________________ Brenda Green, City Clerk