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Home My WebLink About2004-01-20 City Council (9)TO: City of Palo Altol 2 City Manager’s Report’- HONORABLE CITY COUNCIL FROM:CITY 5~NAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE:JANUARY 20, 2004 CMR: 126:04 SUBJECT:APPROVAL OF RESOLUTION DECLARING COUNCIL POLICY TO MITIGATE DEVELOPMENT IMPACTS AND INITIATING PROCEEDINGS TO ESTABLISH A TRANSPORTATION IMPACT FEE CITYWIDE RECOMMENDATION Staff recommends that the City Council adopt a Resolution (Attaclmaent A) providing the legal framework and policy direction necessary for the City to use "placeholder" fee conditions in anticipation of the Council adopting a citywide Transportation Impact Fee. BACKGROUND Creation of a Citywide Transportation Impact Fee (TIF) is a task included under two of the "Top 5" Council Priorities: "City Finances" and "Alternative Transportation/Traffic Calming." In study sessions on June 11 and August 27. 2003, the Planning and Transportation Comlnission (PTC) discussed draft "conceptual alternatives" for establishment of a citywide, multimodal transportation impact fee. The TIF would supplement two existing ordinances that pertain only to the Stanford Research Park (1986) and the environs of San Antonio/West Bayshore (1989) and are also limited strictly to traditional intersection mitigations of traffic congestion. Staff is currently revising the proposal presented to the PTC on August 27, based on Commission comments and public testimony, outreach to the business community (mainly through the Palo Alto Chamber of Commerce), and results of independent legal review. Staff wil! return to Council with a detailed recomlnendation regarding a citywide Transportation Impact Fee after completing these revisions. DISCUSSION The effect of the attached resolution is to direct the City Manager and City Attorney to take steps immediately so that development projects are charged their fair share of impacts on the City’s transportation system and on transportation within the community. The proposed TIF structure being prepared is predicated on the following 15 principles (subject to further modification prior to and after PTC final review): CMR:126:04 Page 1 of 3 1) 2) 3) 4) 6) 7) 8) 9) 10) 11) 12) 13) 14) Applicability of the fee citywide. Uniformity of the fee citywide. Assessment of the fee on a per PM peak-hour trip basis. Assessment of projects of all sizes (i.e. regardless of peak-hour trip generation). Peak-hour ta’ip generation estimation to be consistent with the Santa Clara Valley Transportation Authorib,"s Transportation Impact Analysis Guidelines. Levy of the fee as a one-tilne (not annual) charge. Levy fees on new trips generated by a change in land use. Fee level adjustments to be made annually in line with the Construction Cost Index. Focus proceeds on alternative modes (cycling, walking, shuttle transit) and citywide traffic signal system investments. Development and redevelopment projects remain responsible for mitigating significant impacts on nearby intersections, along with payment of the per-peak hour trip fee. (Thus the existing Stanford Research Park/El Camino Real and San Antonio/Bayshore intersection congestion mitigation impact fees would remain in place). Intersection congestion mitigation impact fees would remain in place. Citywide TIF proceeds would be usable on projects cityavide (an alternative approach would be to allocate a portion of the fees collected for use on any project citywide and a portion solely for the geographic area of the development project generating the fees. Geogaphic equity is to be ensured through a geo~’aphically balanced expenditure plan. (An alternative approach would be to allocate a portion citFa, ide and a portion to the geographic area [or "zone"] of the development project). Credits (fee forgiveness) would be given for transportation demand management efforts. 15)Exemptions would be similar to those for other City impact fees (e.g. for 1 O0 percent affordable housing projects, day care centers, public schools, etc.). BOARD/COMMISSION REVIEW AND RECOMMENDATIONS The Planning and Transportation Commission comments during study sessions on June 11, 2003 and August 27, 2003 focused on several key areas. These included the TIF level; the desirability of geographic equity in funding projects from the proposed TFI; the need to outreach to the business COmlnunity; and the nature and extent of exemptions from the fee. PTC comments were supportive of a cityavide TIF and of an expenditure plan for TIF CMR:126:04 Page 2 of 3 proceeds that reflects the policy framework of the Palo Alto Comprehensive Plan Transportation Element. The PTC will formally review a staff recommendation for the citywide Transportation Impact Fee on February 4, 2004. PTC recommendations on the full particulars of a TIF will be forwarded to the Council at a date to be scheduled. ATTACHMENTS A.Resolution declaring council policy to mitigate development impacts and initiating proceedings to establish a Transportation Impact Fee. PREPARED BY: DEPARTMENT HEAD: JOSEPH KOTT Chief Transportation Official S ~-"EVE EMSLIE Director of Planning and Community Environment CITY MANAGER APPROVAL: {EMILY HARRISON Assistant City Manager cc:Planning and Transportation Commission Chamber of Commerce CMR: 126:04 Page 3 of 3 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO DECLARING COUNCIL POLICY TO MITIGATE DEVELOPMENT IMPACTS AND INITIATING PROCEEDINGS TO ESTABLISH A TRANSPORTATION IMPACT FEE WHEREAS, the direct and cumulative impacts of development have caused negative environmental and physical effects upon the City’s transportation system; and WHEREAS, the adopted 1998-2010 Comprehensive Plan, including the Transportation Element, articulates numerous goals, policies, and programs that are designed and intended to provide accessible, attractive, economically viable and environmentally sound transportation options; and WHEREAS, the City’s constitutional police power,the adopted 1998-2010 Comprehensive Plan, the Subdivision Map Act, the Mitigation Fee Act, and the California Environmental Quality Act provide legal authority for the City Council to require development projects to mitigate direct and cumulative environmental effects and to require development projects to bear a fair and reasonable share of the burden of mitigating impacts on the City’s transportation system; and WHEREAS, the City has initiated proceedings to adopt a Transportation Impact Fee; and WHEREAS, the City Council wishes to articulate existing policy and provide direction to staff that will assure that all pending and proposed development projects are required to mitigate direct and cumulative environmental effects and to bear a fair and reasonable share of the burden of mitigating impacts on the City’s transportation system; and WHEREAS, this resolution has been considered at a noticed public meeting in accordance with Government Code sections 65090(a) and 66474.2. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION i. The City Council has initiated proceedings to establish a Transportation Impact Fee. 0401 !4 syn 8250012 SECTION 2. The City Council hereby finds that the public interest, health, safety and welfare of Palo Alto and the surrounding region require development projects to mitigate fully any impacts they cause on the City’s transportation system. SECTION 3. Until such time as the Transportation Impact Fee has been approved by the City Council and becomes effective, the City shall, where warranted and to the greatest extent legally possible, impose conditions of approval on development projects that require the project proponent and applicant to agree to bear their fair share of the cost and burden of mitigating impacts on the City’s transportation system as described and established in the Comprehensive Plan or other applicable studies. The cost and burden of this mitigation and enhancement shall not exceed the proportion reasonably related to the project and may be imposed and secured via development fee, assessment district or other mechanism. SECTION 4. The City Council hereby declares that, as a general matter, development projects that do not include conditions or features needed to bear a fair share of the cost and burden of mitigating impacts on the City’s transportation system will be determined to be inconsistent with the adopted 1998-2010 Comprehensive Plan. SECTION 5. The City Council hereby declares that, as a general matter, the cumulative impacts of development projects that do not include conditions or features needed to bear a fair share of the cost and burden of mitigating impacts on the City’s transportation system will be determined to be significant environmental effects pursuant to the California Environmental Quality Act. This declaration is based upon the Council’s finding and determination that, as a general matter, the incremental effects of individual development projects upon the City’s transportation system have been cumulatively considerable when viewed in connection with the effects of past projects, current projects and probable future projects. // // // // 040114 syn 8250012 SECTION 6. The city manager and city attorney are directed and authorized to take all necessary actions to implement this resolution immediately. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: City Attorney City Manager Director of Planning and Community Environment Director of Administrative Services 040114 syn ~250012 3