Chapter 5.55
TRAFFIC MITIGATION FEE
Sections:
5.55.010 Intent and purpose.
5.55.020 Findings.
5.55.030 Definitions.
5.55.040 Applicability – Time of payment.
5.55.050 Establishing the fee – Fee amount – Annual adjustment.
5.55.060 Exemptions.
5.55.070 Use of funds.
5.55.080 Refunds.
5.55.090 Accounting.
5.55.100 Appeals.
5.55.110 Supplementary provisions.
5.55.010 Intent and purpose.
A. It is the policy of the city, as set forth in the growth management element, that new development pay for the cost of the improvements to the citywide circulation system which are necessary to accommodate the traffic volumes generated by new development. Program 1.5 of the growth management element states: “Continue to require developers to pay costs necessary to mitigate impacts of their projects on the local and regional transportation system, including establishment of trails and other alternatives to vehicle use.” (City of Pleasant Hill General Plan 2003, adopted July, 2003.)
B. A fair and equitable method of securing some of the revenues necessary to construct the required street system improvements is to impose a traffic mitigation fee based on the extent to which new development generates additional traffic volumes.
C. The City of Pleasant Hill is about 95% built out under its general plan. Approaching build-out has implications for the type of facilities needed to accommodate growth. Large capacity-increasing projects such as street extensions and widenings and interchange improvements are no longer a practical method for accommodating growth. Rather, a range of upgrades to the existing system of street improvements, including bicycle and pedestrian facilities, better represent the remaining improvements needed to complete the street system.
D. Many types of improvement projects can accommodate new development by upgrading the street improvements and facilitating new trips across all modes (vehicle, transit, bicycle and pedestrian). Examples of upgrades needed to accommodate new development include but are not limited to: minor intersection improvements such as adding turn lanes; upgrades to traffic control devices (traffic signals) and improved interconnects; completion of gaps in the street, transit, bicycle and pedestrian network; and improvements to substandard street, transit, bicycle and pedestrian facilities.
E. The traffic mitigation fee must fairly apportion to new development a fair share of the city’s costs for street improvements. New development’s fair share should be based on the capital projects needed to accommodate the additional demand placed by it on the city’s system of street improvements. Under the street improvement system equity approach, new development will contribute to the cost of street improvements in proportion to the level of investment made to date by existing development. Thus, new development would add to the existing equity in the city’s system of street improvements in proportion to growth in demand as measured by the number of new trips on city streets.
F. The equity approach allows traffic mitigation fee revenues to be used for street improvement projects that upgrade and increase the value of the entire system of street improvements. The use of revenues is not limited to a specific project list. At the same time, this approach ensures new development is treated fairly by requiring contributions to these improvements only up to the level of investment made by existing development.
G. In the absence of this chapter imposing a traffic mitigation fee, existing and future sources of revenue will be inadequate to fund the necessary street system improvements which are necessary to avoid unacceptable levels of congestion and related adverse impacts created by expected development within the city.
H. To properly evaluate the impacts of new development and the fair apportionment of costs, the city retained MuniFinancial to undertake a study of the traffic mitigation fee. The study, entitled “Traffic Mitigation Fee Update, City of Pleasant Hill,” dated July 10, 2003, provides the analytical basis for the fee. A copy is on file in the public works and community development department.
I. It is the intent of the city council to adopt by this chapter a fair and equitable method of securing some of the revenues necessary to fund the construction and implementation of improvements to the citywide street system sufficient to accommodate the traffic volumes generated by new development and preserve acceptable levels of service throughout the city.
J. The city council intends to impose fees under this chapter that do not exceed the estimated reasonable cost of new development’s share of improvements, that implement the growth management element to reduce the traffic congestion which will be created by new development, and that are based upon the trip generation rates for the land uses permitted under the city’s general plan, assuring that the fee applicable to a particular development bears a fair and reasonable relationship to each such development’s burden on, and benefit from, the citywide street system improvements. (Ord. 779 § 1, 2003; 1991 code § 30-1.1)
5.55.020 Findings.
Consistent with AB 1600 (Govt. Code § 66000 and following), the city council finds as follows:
A. Purpose. The purpose of the traffic mitigation fee is to fund street system improvements to accommodate new development in the city.
B. Use of fee. The traffic mitigation fee revenues will be used for upgrades, expansions or additions to the city’s system of street improvements and related transit, bicycle and pedestrian facilities. The city determines the exact use of these revenues through the capital improvement program. The allowable use of fee revenues includes but is not limited to:
1. Street widenings and extensions;
2. Construction of minor intersection improvements;
3. Upgrades to traffic control devices (traffic signals) including interconnects;
4. Completion of gaps in the street, transit, bicycle and pedestrian facilities;
5. Improvements to substandard street, transit, bicycle and pedestrian facilities.
C. Relationship between fee’s use and type of development. There is a reasonable relationship between the fee’s use and the type of development projects on which the fee is imposed. Fee revenues will only fund upgrades, expansions or additions to the city’s system of street improvements, including related transit, bicycle and pedestrian facilities. All residential and nonresidential development generates trips that use the system of street improvements citywide.
D. Relationship between need for improvements and type of development. There is a reasonable relationship between the need for the street improvements and the type of development projects on which the fee is imposed. Existing development has net equity invested in the city’s system of street improvements equal to the current depreciated value of that system. The current facility standard equals this existing equity investment per unit of demand. Demand is based on the trips generated by existing development. New development needs to maintain that equity investment per unit of demand to maintain this same facility standard. The use of trip rates by land use category (single-family residential, multifamily residential, commercial, office, industrial) ensures a reasonable relationship between the type of development and the need for the fee.
E. Relationship between amount of fee and cost of improvements. There is a reasonable relationship between the amount of the fee and the cost of the improvements or portion of the improvements attributable to the new development on which the fee is imposed. The traffic mitigation fee is based on the existing facility standard multiplied by the trip generation rate associated with each land use category. Each development project pays its fair share of the cost of facilities required to accommodate it based on the number of trips it generates. (Ord. 779 § 1, 2003; 1991 code § 30-1.2)
5.55.030 Definitions.
In this chapter:
A. Development means:
1. Any new construction, or any addition, extension, or enlargement of an existing structure or unit, which includes a dwelling unit for residential use or the gross floor area of commercial, office or industrial use; or
2. Any conversion or change in use of an existing structure requiring city approval, including a building permit, which would result in a change in the land use category (resulting in an increase in the trip demand factor applicable to the structure).
B. Gross floor area means the sum of the square footage of the floor area at each floor level included within the exterior walls of a building or portions thereof, including mezzanines and lobbies. It excludes floor area devoted to vehicle parking, necessary interior driveways and ramps.
C. Land use category means any of the following specific land uses:
1. Residential:
a. Single-family;
b. Multifamily (attached residential units).
2. Nonresidential:
a. Commercial;
b. Office;
c. Industrial.
D. Street improvements, system of street improvements and facilities mean the range of transportation-related improvements, including upgrades, expansions or additions to the city’s system of street improvements and related transit, bicycle and pedestrian facilities. These include but are not limited to:
1. Street widenings and extensions;
2. Construction of minor intersection improvements;
3. Upgrades to traffic control devices (traffic signals) including interconnects;
4. Completion of gaps in the street, transit, bicycle and pedestrian facilities;
5. Improvements to substandard street, transit, bicycle and pedestrian facilities.
These also include the architectural, administrative, engineering, legal, planning, environmental and other services required in connection with the implementation of this chapter and the construction of the street improvements.
E. Traffic fee study means the “Traffic Mitigation Fee Update,” dated July 10, 2003, prepared by MuniFinancial, on file in the city offices. (Ord. 779 § 1, 2003; 1991 code § 30-1.3)
5.55.040 Applicability – Time of payment.
A. Applicability. Except as provided in PHMC § 5.55.060, Exemptions, this chapter applies to each development within the city for which a building permit or other entitlement for development is issued.
B. Time of payment. The traffic mitigation fee is due:
1. For residential development, before the final inspection, or the date the certificate of occupancy is issued, whichever occurs first. (Govt. Code § 66007(a).)
2. For nonresidential development, before the issuance of the building permit. (Ord. 779 § 1, 2003; 1991 code § 30-1.4)
5.55.050 Establishing the fee – Fee amount – Annual adjustment.
A. Establishing the fee. The traffic mitigation fee is established by determining the value of the city’s existing equity in its street improvement system and dividing that amount by the existing trip demand. The result is the equity value per trip. This rate is then multiplied by the trip demand factor, based upon the standard trip demand factor of each land use category (using trip demand factors from the San Diego Association of Governments, “Brief Guide of Vehicular Generation Rates for the San Diego Region,” July, 1998).
B. Fee amount. The amount of the traffic mitigation fee required of the development shall be determined by the director of public works and community development or his or her designee in accordance with this section, which is based on the traffic fee study.
|
Land Use Category |
Equity Value Per Trip |
Trip Demand Factor |
Traffic Mitigation Fee |
|---|---|---|---|
|
Residential |
|
|
(per dwelling unit) |
|
Single-Family |
$190.00 |
11.1 |
$2,109 |
|
Multifamily |
$190.00 |
8.9 |
$1,691 |
|
Nonresidential |
|
|
(per 1,000 sq. ft.) |
|
Commercial |
$190.00 |
28.7 |
$5,453 |
|
Office |
$190.00 |
24.4 |
$4,636 |
|
Industrial |
$190.00 |
9.0 |
$1,710 |
In determining the land use category for which a fee applies, the fee shall be charged on the basis of the primary use of the building as a whole. For other land use development or if an ambiguity arises in determining the land use category, the equity value per trip will be multiplied by the trip demand factor. The city shall use the category which in its judgment most nearly fits the proposed use. The director of public works and community development may refer to specific uses described in the zoning ordinance and to the Standard Industrial Classification Manual (SIC).
For development consisting of an addition, extension, or enlargement of an existing structure or unit, the traffic mitigation fee shall be paid only on any additional dwelling units or additional gross floor area resulting from the addition, extension, or enlargement.
For development consisting of a conversion or change in use of an existing, repaired or rebuilt structure or unit to a different land use category, the traffic mitigation fee shall be the difference between the fee applicable to the entire structure or unit for the new use and the fee applicable to the entire structure or unit for the prior use.
C. Annual adjustment of the rate based on construction cost index. The fee shall be automatically increased annually, beginning January 1, 2005, based on the Engineering News Record 20-city construction cost index listed in the prior October 1st issue, as published by McGraw-Hill Publishing Company. (Ord. 779 § 1, 2003; 1991 code § 30-1.5)
5.55.060 Exemptions.
The following development projects are exempt, in whole or in part, from the traffic mitigation fee otherwise required by this chapter:
A. Capital improvements and/or buildings or structures related to the operation of city, Contra Costa County, state or federal governments including, but not limited to, police and fire stations, Pleasant Hill recreation and park district facilities, parking lots, offices, equipment yards, sanitation facilities, parks and similar facilities in or through which general government operations are conducted. This section does not create an exemption for private commercial or industrial activities conducted on public lands.
B. Temporary uses less than 12 months in duration.
C. Churches, temples, and other properties used primarily for religious worship.
D. Public elementary and secondary schools.
E. Additions, extensions or enlargements of an existing residential structure which, in any two-year period, increase the gross floor area by less than 800 square feet.
F. A secondary dwelling unit approved under PHMC § 18.20.095.
G. Additions, extensions or enlargements of an existing commercial or industrial structure which, in any one calendar year, increase the gross floor area of such structure by 200 square feet or less.
H. Parking structures.
I. Development within a designated redevelopment project area if the redevelopment agency approves the exemption and provides that the amount of the fee which would otherwise apply is paid by the redevelopment agency into the city’s traffic mitigation fee fund.
J. No fee is due if a traffic mitigation fee was previously paid in full for the property, unless there is a change of use which requires a use permit or tenant improvements. In that case, the person shall pay the incremental difference between the applicable fee for the prior use and the fee for the proposed new use. (See PHMC § 5.55.050.B.) (Ord. 779 § 1, 2003; 1991 code § 30-1.6)
5.55.070 Use of funds.
The fees paid under this chapter, and interest income earned, shall be used solely for the purpose of constructing or providing street improvements. (Ord. 779 § 1, 2003; 1991 code § 30-1.7)
5.55.080 Refunds.
A. The chief building official may authorize a refund if all of the following occur:
1. The building permit expires and no extension has been granted for a development for which the fee has been collected;
2. No substantial work has been done; and
3. The claim for the refund is filed within one year after the expiration date of the building permit or any extension of it.
B. The city council may authorize a refund by resolution, under Government Code sections 66001(d). (Ord. 779 § 1, 2003; 1991 code § 30-1.8)
5.55.090 Accounting.
The city shall deposit, invest, account for, and expend the fees in accordance with this chapter and Government Code section 66006. (Ord. 779 § 1, 2003; 1991 code § 30-1.9)
5.55.100 Appeals.
A developer may appeal to the city council any determination made under this chapter. The developer must file an appeal within 15 days of the date of the determination appealed from. The appeal must be in writing, stating the reasons for the appeal. The city council shall set the matter for hearing within 45 days of the date of receipt by the city clerk of notice of the appeal. In making its determination on the appeal, the city council shall follow the standards set forth in this chapter.
If the appeal is based on a challenge to the amount of the fee based on the equity value per trip established by the traffic fee study, the developer shall include a professional analysis showing how the rate is erroneous. (Ord. 846 § 5, 2010; Ord. 779 § 1, 2003; 1991 code § 30-1.10)
5.55.110 Supplementary provisions.
It is the intent of the city council that the fees required by this chapter shall be supplementary to the fees, dedications or conditions imposed upon development under the provisions of the Subdivision Map Act, California Environmental Quality Act, and other state laws and city ordinances or policies which may authorize the imposition of fees, dedications or conditions. (Ord. 779 § 1, 2003; 1991 code § 30-1.11)