Agenda Item D.1 DISCUSSION ACTION ITEM Meeting Date: April 7, 2015

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1 Agenda Item D.1 CPMS DISCUSSION ACTION ITEM Meeting Date: April 7, 2015 TO: FROM: Mayor and Councilmembers Rosemarie Gaglione, Public Works Director CONTACT: Tim Giles, City Attorney SUBJECT: Transportation Impact Mitigation Fee Calculation Methodology RECOMMENDATION: Adopt Resolution No. 15- entitled A Resolution of the City Council of the City of Goleta, California, Interpreting and Clarifying the Methodology for Calculating Traffic Impact Mitigation Fees. BACKGROUND: The City Council has approved a number of private developments for construction. Developments pay the City development impact fees ( DIFs ). Many of these DIFs are codified within the Goleta Municipal Code ( GMC.) DIFs paid in accordance with the Goleta Traffic Impact Mitigation Program ( GTIP ), however, are not part of the GMC. Rather, the City Council has adopted a series of resolutions establishing the GTIP DIFs in accordance with the Mitigation Fee Act (Government Code 66000, et seq.) with reference to the Santa Barbara County Code of Ordinances ( SBCO ). Some developers are questioning staff s calculation of the GTIP DIFs. City Council clarification of the methodology for calculating the GTIP DIFs will aid in the efficient implementation of the GTIP. The draft resolution provides such guidance. DISCUSSION: The Mitigation Fee Act requires certain DIFs to be established and collected in a prescribed manner. The Mitigation Fee Act requires such DIFs to be adopted by the City Council and requires the fees to be reasonable. Although jurisdictions frequently adopt fees by ordinance based upon engineering studies, this is not required by the Mitigation Fee Act. The City of Goleta collects a GTIP fee on development based upon its impact on the transportation system, currently $16,151 per each additional peak hour trip. Santa Barbara County (Ordinance 4207) originally adopted the GTIP and the Fee Study that the GTIP on which the GTIP was based. On February 1, 2002, the City Council adopted 1

2 Meeting Date: April 7, 2015 an ordinance adopting all of the Santa Barbara County ordinances by reference as City ordinances. Subsequent City Council ordinances adopted on April 22, 2002 and June 17, 2002 reaffirmed that action. This included Ordinance In 2009, the City Council adopted Ordinance No which codified the GMC. While many regulations governing DIFs were included in the GMC, the GTIP DIFs were not included in the codification but were adopted by Council Resolution. The GTIP was originally adopted by the City Council by Resolution on October 4, 2002 (Reso. No ) The current GTIP was adopted by the City Council on November 17, 2014 (Reso. No ) Questions regarding the method for calculating GTIP DIFs have plagued a number of private development projects that the City Council approved. It seems prudent, therefore, for the City Council to resolve some of these issues by adopting the draft resolution to interpret and clarify the legislative intention behind the Council's GTIP, specifically clarifying the authority of staff to calculate GTIP DIFs. Existing law - including the Mitigation Fee Act - provides that a City may reasonably impose GTIP DIFs utilizing calculations identified by the Public Works Director. The draft resolution clarifies methods that the Public Works Director should use when calculating the total amount of GTIP DIFs owed by each project. This will help ensure objective and uniform application such calculations to all development projects. As stated in the draft resolution, the Public Works Director should use an objective document for calculating the number of vehicle trips associated with a project (for example, a traffic study prepared for that project). A credit would be provided for the number of vehicle trips associated with the existing land use on a subject property. Once the total number of vehicle trips are identified, the Public Works Director would multiply that number with the GTIP DIF then in effect. The sum would constitute the total amount of GTIP DIFs owed to the City for a project. For example, if a retail use is being installed, the traffic study might determine that the use will generate 120 trips. However, if an existing office use is being removed, there might be 20 trips that are eliminated. In that example, GTIP would apply to the 100 total new trips (120-20=100 trips x $16, 151 fee rate = $1,615, 100 total GTIP DIF.) To ensure that there are no misunderstandings regarding the City Council's intent, the draft resolution would apply retroactively to all GTIP DIFs calculated since Finally, the draft resolution would adopt the current version of the ITE Traffic Manual (the 9th Edition) starting January 1, This determination is important when calculating GTIP DIFs since the ITE Traffic Manual provides objective traffic counts associated with various land uses. Future ITE Manual editions (as they become available) could be designated by the City Manager, or designee. Submitted By: Reviewed By: TimW. Giles City Attorney Michelle Greene City Manager Page 2 of 3 2

3 ATTACHMENTS: Resolution No. 15- A Resolution of the City Council of the City of Goleta, California Interpreting and Clarifying the Methodology for Calculating Traffic Impact Mitigation Fees. 3

4 ATTACHMENT 1 Resolution No. 15- A Resolution of the City Council of the City of Goleta, California Interpreting and Clarifying the Methodology for Calculating Traffic Impact Mitigation Fees. 4

5 RESOLUTION NO. 15- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GOLETA, CALIFORNIA INTERPRETING AND CLARIFYING THE METHODOLOGY FOR CALCULATING TRAFFIC IMPACT MITIGATION FEES. The City Council of the City of Goleta does resolve as follows: SECTION 1: The City Council finds and declares that: A. On February 1, 2002, the City Council adopted Ordinance No ; adopted Ordinance No on April 22, 2002; and adopted Ordinance No on June 17, 2002 (collectively, the Incorporation Ordinances ). The Incorporation Ordinances adopted all Santa Barbara County codified and uncodified ordinances by reference as City ordinances; and B. On October 4, 2004, the City Council adopted Resolution No , establishing a traffic impact mitigation fee (the Fee ) in accordance with the Mitigation Fee Act (Government Code 66000, et seq.) with reference to Santa Barbara County Ordinance No as originally codified at Santa Barbara County Ordinance Code ( SBCO ) Chapter 23C; and C. On November 17, 2014, the City Council adopted Resolution No , established the currently applicable GTIP Fee program in accordance with the Mitigation Fee Act (Government Code 66000, et seq.) with reference to Santa Barbara County Ordinance No as originally codified at Santa Barbara County Ordinance Code ( SBCO ) Chapter 23C; and D. The City Council may interpret its own regulations as recognized in California law including, without limitation, Yamaha Corp. of Am. v State Bd. of Equalization (1998) 19 Cal.4 th 1 and State Farm Mutual Auto Ins. Co. v Quackenbush (1999) 77 Cal.App.4 th 65; and E. The City Council recognizes that California law, including, without limitation, Melton v. City of San Pablo (1967) 252 Cal.App.2d 794 and In re Cindy B. v. Eugene B. (1987) 192 Cal.App.3d 771, allows legislative interpretations to be retroactively applied when the legislative intent for such retroactivity is clear; and 5

6 F. The City Council s intent in adopting this Resolution is to interpret the legislative intention of the Fee adopted by the City Council and to clarify the methodology for calculating the Fee since February 2, 2002 and provide direction to the Public Works Director, or designee, for making such calculations prospectively. SECTION 2: Fee Calculations. As set forth in Government Code 66001, the Fee calculation must be reasonable. SBCO 23C-8 provided that the methodology for calculating all fees due, or exemptions allowed are determined by the Public Works Director, or designee (the Public Works Director ). To assist in formulating the Fee Calculation, the City Council finds that the Public Works Director utilizes the following formula when determining Fee calculations: A. Fee Amounts. The total amount of Fees for a new development will be calculated through any reasonable means as determined by the City Manager, or designee, including, without limitation, the following: 1. Identify the number of vehicle trips associated with new development ( A ) as determined by an objective source including, without limitation, the Traffic Engineering Handbook published by the Institute of Traffic Engineers (the ITE Manual ); a traffic study analyzing the vehicle traffic associated with a new development; a document prepared in accordance with the California Environmental Quality Act ( CEQA ); or any combination of such documents; 2. Identify the current Fee established by City Council resolution ( B ); and 3. Utilize the formula of A * B = [Total Fee]. B. Fee Credits. 1. New development that, through demolition or conversion, will eliminate existing development is entitled to a fee credit if the existing development is a lawful use under the Goleta Municipal Code ( GMC ), including a nonconforming use. 2. New development that will replace development that was partially or totally destroyed by fire, flood, earthquake, mudslide, or other casualty or act of nature, is entitled to a Fee credit if the development that was partially or totally destroyed was a lawful use under the GMC, including a nonconforming use, at the time thereof. 6

7 3. Credit for such eliminated development or development that was partially or totally destroyed (as above specified) will be calculated by the city manager, or designee, in accordance with the Fee schedule established by City Council resolution and must be applied to new development on the same site. SECTION 3: Fee Findings. The City Council finds that the Fee calculations in Section 2 are reasonable and that the course and conduct of the City Public Works Director in making Fee calculations as set forth in Section 2 represents the City Council s intention in adopting the Fee. SECTION 4: ITE Manual. Commencing on January 1, 2015, the City will utilize the 9 th Edition ITE Manual for calculating the Fees. The City Manager, or designee, is authorized to designate subsequent ITE Manual Editions upon an administrative determination memorialized in writing. SECTION 5: This Resolution will become effective immediately upon adoption. The City Council specifically intends that this Resolution be retroactively effective since October 6, 2009 and will remain effective until superseded by a subsequent resolution. SECTION 6: This Resolution is the City Council s final decision and will become effective immediately upon adoption. SECTION 7: The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. PASSED, APPROVED, AND ADOPTED this 7 th day of April, PAULA PEROTTE, MAYOR ATTEST: APPROVED AS TO FORM: DEBORAH S. LOPEZ CITY CLERK TIM W. GILES CITY ATTORNEY 7

8 STATE OF CALIFORNIA) COUNTY OF SANTA BARBARA ss. CITY OF GOLETA) I, DEBORAH S. LOPEZ, City Clerk of the City of Goleta, California, DO HEREBY CERTIFY that the foregoing Resolution No. 15- was duly adopted by the City Council of the City of Goleta at a regular meeting held on the 7 th day of April, 2015, by the following vote of the Council: AYES: NOES: ABSENT: (SEAL) DEBORAH S. LOPEZ CITY CLERK 8