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HomeMy WebLinkAbout2007-06-18 Ordinance 4958follows: ORDINANCE NO 4958 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ESTABLISHING A CITYWIDE TRANSPORTATION IMPACT FEE AND AMENDING THE PALO ALTO MUNICIPAL CODE, TITLE 16 (BUILDING REGULATIONS) BY ADDING CHAPTER 16.59 CITYWIDE TRANSPORTATION IMPACT FEE 'rhe Council of the City of Palo Alto does ORDAIN as SECTION 1. Findings. declares that: The City Council finds and (a) Development projects in the City, including new construction, additions, and rebuilds, place new demands on the City's transportation infrastructure. (b) Especially during commute hours, the City's transportation infrastructure operates at or near capacity. Consequently, the introduction of additional vehicles onto the City's streets has the effect of increasing traffic congestion. ~ncreased congestion has negative effects on commute times, transit system efficiency, air quality, traffic safety, pedestrian and cyclist comfort,. and other quality-of-life issues affecting the community. (c) The Ci ty currently imposes si te-specific exactions upon new development that place heavy demands on specific intersections and streets, and the City currently imposes area-based traffic impact fees to fund street improvements specificallY necessitated by (and in the immediate vicinity of) development in certain areas of the City. However, when traveling to and from new developments, commuters, res idents and customers use (and cause congestion on) streets and transportation infrastructure throughout the City. These ci tywide transportation impacts are not mitigated by existing exactions or fees. (d) It is not feasible to widen streets on a citywide basis in order to relieve congestion. Consequently, the best way to accommodate trips generated by new development is through improvements and services that increase the capacity of the transportation system without requiring additional full-width lanes. 070411 cjs 0130091a (e) The City has engaged Nelson\Nygaard Consulting Associates to prepare a study, entitled "Transportation Impact Fee Nexus Study," modified by a subsequent addendum, entitled "Addendum to Transportation Impact Fee Nexus Study" (collectively the "Study"), setting forth a program of public improvements and public services designed to increase capacity of the transportation system and mitigate congestion caused by new development (the "Program"). The Study, which is on file in the Office of the City Clerk, is incorporated herein by reference. (f) The Program's advanced transportation management and information system will mitigate congestion throughout the city by improving drivers' route and trip selections, by decreasing the amount of time vehicles spend idled at intersections and by increasing the efficiency and speed of transit services. (g) The Program's expanded shuttle transit service will provide additional transportation options to commuters, residents and customers. By shifting trips along existing streets from single passenger automobiles to multi-passenger buses, expanded shuttle service will increase the number of people who can simultaneously use existing streets. (h) The Program's bicycle and pedestrian improvements will make it safer and easier for individuals to travel wi thin the City without using a motorized vehicle. By shifting trips along existing streets from existing traffic lanes to sidewalks, bike lanes, and bike boulevards, bicycle and pedestrian improvements increase the number of people who travel without using infrastructure for motorized vehicles. (i) Section 66000 et seq. of the California Government Code authorizes the City to levy a fee upon development projects to defray all or a portion of the costs of public improvements and public services related to the development project. (j) The City desires to impose a fee, to be known as the "Citywide Transportation Impact Fee", upon development proj ects, for the purpose of funding a portion of the costs of the Program (the "Fee"). The Fee, its methodology, and the calculations supporting its methodology, are set forth in this Ordinance and more completely analyzed in the Study. (k) The Study estimates the costs of each element of the Program and substantiates a methodology for the Fee that will charge each new development project only for the portion of the costs of the Program necessary to mitigate the traffic congestion expected to be caused by that development project. 070411 cjs 0130091a 2 (1) The to new development, congestion. Study identifies congestion not attributable and the Fee will not fund mitigation of such (m) There is a reasonable relationship between the and the development proj ects on which the because such development projects cause a citywide basis that the Program will need for the Program Fee will be imposed traffic congestion on mitigate. (n) There is a reasonable relationship between the Fee's use and development proj ects on which the Fee will be imposed because the Fee will only fund the portion of Proj ect costs allocable to congestion caused by those development projects. (0) The Fee does not exceed the estimated reasonable cost of providing the services and facilities for which the Fee is imposed. The Fee is not levied, collected or imposed for general government purposes. (p) Certain new development proj ects, though likely to generate at least some traffic congestion, are exempted by this Ordinance from the Fee due to the following considerations: (i) public schools, affordable housing proj ects, and day care centers are exempted because the provision of the critical social services provided by these types of developments are of higher priority to the City than the mitigation of citywide traffic congestion; (ii) municipal buildings are exempted because the City already funds a wide range of transportation improvements throughout the city; and (iii) small retail establishments are exempted because such establishments primarily serve workers and residents already in a neighborhood, thereby permitting these customers to substitute walking trips or short vehicular trips for longer trips and thus serve by the very nature to mitigate citywide traffic impacts. (q) The Study identifies the portion of anticipated citywide congestion allocable to exempt uses and does not charge non-exempt development projects for the portion of Project Costs necessary to mitigate such congestion. SECTION 2. Title 16 of the Palo Alto Municipal Code is hereby amended by adding Chapter 16.59 to read as follows: "Chapter 16.59 -Citywide Transportation Impact Fee Section 16.59.010 -Short Title 070411 cjs 0130091a 3 This Chapter may be referred to as the Citywide Transportation Impact Fee Ordinance. Section 16.59.020 -Definitions For the purposes of this Chapter, the following definitions shall apply: (a) "Affordable Housing" shall mean housing with a purchase price or rent that is affordable to a "moderate," "low" or "very low" income household, as those terms are defined by the California Department of Housing and Community Development, as applicable to Santa Clara County. (b) "Citywide Transportation Capacity Enhancements" shall mean public facilities and services that relieve citywide traffic congestion caused by new development projects. Citywide Transportation Capacity Enhancements include, but are not limited to, advanced transportation management and information systems, expanded shuttle transit services, and bicycle and pedestrian improvements. Citywide Transportation Capacity Enhancements do not include (i) intersection improvements designed primarily to accommodate increased traffic generated by a specific development or (ii) the addition of through-traffic lanes designed for primary use by private motorized vehicles. (c) "Construction Cost Index" shall mean the Construction Cost Index for the San Francisco Bay Area set forth in the Engineering News Record published by McGraw Hill and Associates. In the event the Engineering News Record ceases to calculate and publish this index, then the City Manager may designate a comparable, alternative index to serve as the Construction Cost Index. (d) "Eligible Citywide Transportation Capacity Enhancements" shall mean (i) the Citywide Transportation Capacity Enhancements identified in the Transportation Impact Fee Nexus Study approved by the City Council, and (ii) other Citywide Transportation Capacity Enhancements that are approved by the City Council that may be substituted for an identified improvement or service because they will mitigate similar congestion. (e) "Existing Development" shall mean structures present (at the time the amount of the Fee is calculated) on parcels upon which New Development is planned to occur. Where it is necessary to project PM peak hour vehicle trips generated by Existing Development, such projection shall be made based on either (i) the trip generation estimates used to determine the Fee owed with respect to such Existing Development when the Fee was last paid with respect to such Existing Development or (ii) 070411 cjs 0130091a 4 if the Fee has not been paid with Development (or any portion thereof), Existing Development. respect to such Existing the most recent use of the (f) "Fee" shall mean the Citywide Transportation Impact Fee imposed pursuant to this Chapter. (g) Any reference in this chapter to the "Government Code" or to a section of the "Government Code" shall refer to the California Government Code as it exists at the time this ordinance is applied and shall include amendments to that Code made subsequently to the adoption of this Chapter, it being the intent of the City to maintain the Fee in compliance with applicable law. (h) "New Development" shall mean the construction of new structures or additions to existing structures in the City and, with respect to residential development, any development project that creates additional residential units. "New Development" shall not mean replacement or expansion of an existing residential unit. With respect to nonresidential development, "New Development /I shall also mean any development proj ect that creates additional square footage of useful area. (i) "Transportation Impact Analysis Guidelines" shall mean the most recent edition of the "Transportation Impact Analysis Guidelines" promulgated by the Valley Transportation Authority or such other trip proj ection methodology adopted by the City for the purpose of traffic impact analysis reports. Section 16.59.030 -Fee Imposed The Fee is hereby imposed as a condition permi t for any New Development, unless this chapter. Section 16.59.040 -Exemptions of the issuance of any expressly exempted by The provisions of this chapter shall not apply to: (a) City buildings or structures. (b) Public school buildings or structures. (c) Affordable Housing, either for sale or rental, which, by recordable means, is permanently obligated to be 100% affordable. 070411 cjs 0130091a 5 (d) Retail service, eating and drinking service, service, or automotive service when the total square (including New Development) is 1,500 square feet or less. personal footage (e) Day care centers used for childcare, nursery school or preschool education. (f) Below market rate housing units above and beyond the minimum number required for projects subject to the city's Below Market Rate (BMR) Housing Program. The addi tional units must be offered and constructed consistently with the requirements of the BMR program. (g) A change in tenancy that does not result in a change in use and which does not involve either (i) a demolition of an existing structure or (ii) an expansion of square footage of useful area. (h) New Development which is exempt from the Fee by virtue of the Constitutions of the United states and California or by virtue of other applicable state or federal law. Section 16.59.050 -Timing of Payment (a) Except as otherwise required by Government Code Section 66007, the Fee shall accrue when the first discretionary approval is given for a New Development after the effective date of this Section, or if no such discretionary approval is required subsequent to the effective date of this Section, when an application is submitted for a building permit for that New Development. In either case, the Fee shall be payable when an application is submitted for a building permit for the New Development. A Fee shall be calculated at the rate in effect when the Fee accrues. (b) Payment of the Fee may be deferred, for residential development only, to the date of final building inspection approval of the development, provided the owner of the real property for which the fees are required enters into a recordable agreement with the City prior to issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the fees are paid. The agreement shall also provide that, in any action to collect the fees or any portion thereof, the City shall be entitled to all of its costs of enforcement and collection, .including reasonable attorney's fees. The Director of Planning and Community Environment may execute the agreement on behalf of the City in a form acceptable 070411 cjs 0130091a 6 to the City Attorney. Any deferral paragraph (b) shall be consistent Government Code Section 66007. granted pursuant to this with the requirements of (c) A credit against the Fee may be given for dedications of Eligible Citywide Transportation Capacity Enhancements constructed or provided at private expense and for the value of land dedicated to the City that is necessary or useful to an Eligible Citywide Transportation Capacity Enhancement. Such credit will be granted only if the City Council determines that: (i) the City will experience a substantial cost savings or service quality improvement as a result of private construction or provision of the Capacity Enhancement or the dedication of land, (ii) the Capacity Enhancement can be expected to immediately and significantly relieve citywide traffic congestion, and (iii) the grant of the credit, in lieu of the fee, will not cause the City to delay the implementation of elements of the City's transportation plan that are of higher priority, in the judgment of the City Council, than the land or Capaci ty Enhancement that will be dedicated. The credit shall be applied at the time the Ci ty accepts the land or Capacity Enhancement. Where the City Council has made the determinations required by this subdivision, payment of a portion of the Fee equal to the amount of an expected credit against the Fee may be deferred to the date of final building inspection approval of the development, provided the owner of the real propert y for which the fees are required enters into a recordable agreement with the City prior to issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the fees are paid or the credit issued. The agreement shall also provide that, in any action to collect the Fees or any portion thereof, the City shall be entitled to all of its costs of enforcement and collection, including reasonable attorney's fees. The Director of Planning and Community Environment may execute the agreement on behalf of the city in a form acceptable to the city attorney. Any deferral granted pursuant to this paragraph (b) shall be consistent with the requirements of Government Code Section 66007. Where a credit is given for the provision of a service that is an Eligible Capacity Enhancement, the deferral of the Fee, and the application of the credit, may be according to a schedule set forth in the recorded agreement, which schedule shall be designed to ensure that no credit is applied in advance of the provision of services for which the credit is made. Section 16.59.060 -Calculation of Fee 070411 cjs 0130091a 7 (a) The Fee imposed calculated by mul tiplying vehicle trips projected to (ii) the current Fee rate. upon a New Development shall be (i) the number of new PM peak hour be generated by a New Development by (b) The number of new PM peak hour vehicle trips proj ected to be generated by a New Development shall be calculated by subtracting the projected PM peak hour vehicle trips generated by Existing Development on the parcel(s) to contain the New Development from the projected PM peak hour vehicle trips generated by the New Development (including any existing structures to remain on the parcel after the construction of the New Development). In no event shall a New Development be proj ected to generate les s than zero new PM peak hour vehicle trips as a result of this calculation. (c) For purposes of subsection (b), hour vehicle trips proj ected to be Development shall be calculated pursuant Impact Analysis Guidelines. the number of PM peak generated by a New to the Transportation (d) To the extent Existing Development on a parcel qualified as New Development after the effective date of this Section, but 'was exempt from the Fee by virtue of Section 16.59.040 of this Code, the PM peak hour vehicle trips proj ected to be generated by that Existing Development, shall not be subtracted (as otherwise required by subdivision (b) of this Section) from the projected PM peak hour vehicle trips generated by the New Development. (e) The rate of the Fee shall be established from time to time by resolution or ordinance of the City Council in the manner required by Government Code Sections 66004 and 66018. (f) Beginning July 1, 2005, and on each July 1 thereafter, the rate of the fee shall be automatically adjusted according to the following formula: Most Recent ENR Council-Approved Rate * ENR at Council-Approval Where the "Council-Approved Rate" is the rate most recently set by resolution or ordinance of the City Council, "Most Recent ENR" is the most recently published Construction Cost Index when the calculation is made and "ENR at Council-Approval" is the Construction Cost Index published for the month in which the Council approved the "Council-Approved Rate". (g) The Department of Planning and Community Environment shall be responsible for the calculation of the Fee at the time 070411 cjs 013009Ia 8 of plan review or when the Fee is due, Applicants shall supply the City with the to calculate the fee in a format acceptable Section 16.59.070 -Special Fund whichever is earlier. necessary information to the City. (a) There is hereby established a special fund, entitled the "Citywide Transportation Impact Mitigation Fund", into which all Fee proceeds and any interest thereon shall be deposited. The fund shall be maintained as required by Government Code Section 66006. (b) Moneys shall be expended only on the installation, operation of Enhancements. in the fund acquisition, Eligible construction, maintenance and Citywide Transportation Capacity Section 16.59.080 -Accountability Measures (a) At least annually and as required by Government Code Section 66006, the City Manager, or his or her designee, shall review the estimated cost of the public improvements to be funded by the Fee, the continued need for those improvements and 'the reasonable relationship between such need and the impacts of pending or anticipated New Developments. The City Manager, or his or her designee shall report his or her findings to the City Council at a noticed public hearing and recommend any adjustment to the Fee or other action as may be needed. (b) The City Council shall review such report in the manner required by Government Code Section 66006 (b) (2) . (c) To 66001(d), the extent required by Government Code Section the City Council shall make the findings required by that Section. Section 16.59.090 -Penalties (a) All remedies provided for in this chapter shall be cumulative and not exclusive. (b) Violation of any provision of this Chapter, including, but not limited to, converting an exempt use to a use to which this Chapter applies without paying the Fee, is a misdemeanor punishable as provided in this Code. (c) Each person is guilty of a separate offense for each and every day during any portion of which any violation of any provision of this Chapter is committed, continued or permitted by such person. 070411 cjs 0130091a 9 (d) Any person violating any provision of this Chapter, including, but not limited to, converting an exempt use to a use to which this Chapter applies, without paying the Fee, shall be liable civilly to the City in a sum not to exceed five hundred dollars for each day in which such violation occurs. (e) Persons employed in the following designated employee positions are authorized to exercise the authority provided in the California Penal Code Section 836.5 and are authorized to· issue citation for violations of this chapter: chief building official, assistant chief building official, and ordinance compliance inspector." SECTION 3. (al The initial rate of the fee imposed pursuant to Section 16.59.030 of the Municipal Code shall be $2,601 per PM peak hour vehicle trip. This rate may be revised by resolution or ordinance of the City Council and shall be subject to automatic annual adjustment as provided in Section 16.59.060 of the Municipal Code. (b) The total fee assessed against a non-residential ,development shall not exceed $3.88 per square foot. This rate may be revised by resolution or ordinance of the City Council and shall be subject to automatic annual adjustment as provided in Section 16.59.060 of the Municipal Code. SECTION 4. The City Council of the City of Palo Alto hereby determines that: (a) The Ci tywide Transportation Impact Fee ("Fee") established by this Ordinance is in itself a financing mechani~m that is not a project subject to the California Environmental Quality Act ("CEQA"); and (b) That the public improvements to be funded by the Fee are part of the 2003 Bicycle Transportation Plan ("Plan") analyzed pursuant to CEQA by the Comprehensive Plan Update Final Environmental Impact Report ("EIR") and Addendum to the EIR which were certified by the City Council as the environmental document for the Plan on November 24, 2003 in Council Resolution No. 8372. SECTION 5. I f any provis ion or clause of this chapter or the application thereof to any person or circumstance is held to be invalid by any court of competent jurisdiction, such invalidi ty shall not affect any other provision or clause of this Chapter, and to that end, the provisions and clauses of this Chapter are severable. 070411 cjs 0130091a 10 SECTION 6. This ordinance shall be effective on the sixty-first day after the date of its adoption. This ordinance shall not apply to any New Development under 100,000 square feet for which an application for a building permit, planning entitlement, preliminary architectural review, or development project preliminary review has been submitted to the Department of Planning and Community Environment prior to the effective date of this ordinance. INTRODUCED: May 21, 2007 PASSED: June 18, 2007 Vote Excluding Stanford Lands: AYES: ABSENT: BEECHAM, CORDELL, DREKMEIER, KISHIMOTO, KLEIN, KLEINBERG, MORTON, MOSSAR. BARTON Vote Including Stanford Lands: AYES: BEECHAM, DREKMEIER, KISHIMOTO, KLEINBERG, MORTON ABSENT: BARTON ABSTENTIONS: CORDELL, KLEIN, MOSSAR APPROVED: 070411 cjs 0130091a 11