HomeMy WebLinkAboutOrdinance #3944 ORDINANCE NO. 3944
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AMENDING CHAPTER 17.65 OF THE HUNTINGTON BEACH MUNICIPAL
CODE RELATING TO TRAFFIC IMPACT FEES
The City Council of the City of Huntington Beach does hereby ordain as follows:
SECTION 1. Section 17.65.015 is hereby added to Chapter 17.65, said section to read as
follows:
17.65.015 -Leeislative findinsis.
A. The State of California, through the enactment of Government Code Sections 66001
through 66009 has authorized the City to enact development impact fees.
B. The imposition of development impact fees is a method of ensuring that new
development bears a proportionate share of the cost of capital facilities and other costs
necessary to accommodate such development. These fees are established to promote and
protect the public health, safety and welfare.
C. Increase in residential and nonresidential development in the City creates a need for
increased funds to pay for the cost of street, traffic signal and bridge improvements which
are needed to serve the increasing development in the City.
D. Pursuant to the "Development Impact Fee Calculation and Nexus Report for the City of
Huntington Beach" ("Nexus Report") dated October, 2011, as amended April 27, 2012,
which is incorporated herein by reference in these findings as though set forth in full, the
fees established pursuant to this Chapter are derived from, based upon, and do not exceed
the costs of providing additional street, traffic signal and bridge improvements
attributable to applicable new residential or nonresidential development. This study is
based in part upon master planning to more specifically identify existing circulation
system elements.
E. The fees collected pursuant to this Chapter shall be used to finance the possible
acquisition and expansion of circulation systems identified herein in furtherance of the
City's General Plan, as well as the Master Facilities Plan which is part of the Nexus Plan
and the City of Huntington Beach Capital Improvement Plan.
F. Detailed study of the impacts of future residential and nonresidential construction in the
City, along with an analysis of the need for the potential acquisition and expansion of
circulation systems has been prepared. This study is included in the Nexus Report.
12-3209.004/76802 1
Ordinance No.3944
G. As set forth in the Nexus Report, there is a reasonable,relationship between the need for
the potential acquisition and expansion of existing circulation system elements and
increase the number of vehicles set forth in this Chapter and the impacts of the types of
development for which the corresponding fee is charged. In addition, there is a
reasonable relationship between the fee's use and the type of development to which the
fee is charged and a reasonable relationship between the amount of the fee and the cost of
the system or portion thereof attributable to the development on which the fee is imposed.
SECTION 2. Sections 17.65.050, 17.64.070, 17.65.090, 17.65.100, and 17.65.120 of the
Huntington Beach Municipal Code are hereby amended to read as follows:
17.65.050 Establishment of a Fair Share Traffic Impact Mitigation Fee. A Fair Share
Traffic Impact Mitigation Fee is hereby established. Any person who, 60 days after the effective
date of this Chapter, seeks to develop land, or modify the use of land within the City, by
applying for a building permit or other entitlement for use, or an extension of a building permit
or other entitlement for use previously granted, for a development project that will generate net
additional vehicle trips on City streets, is hereby required to pay a Fair Share Traffic Impact
Mitigation Fee in the manner and amount specified in the current City of Huntington Beach Fee
Resolution separately adopted.
The City Council shall, by resolution, set the specific amount of the fee, applicability of the fee,
a formula for adjusting the fee to account for annual inflation in transportation improvement
construction costs, describe the benefit and impact area on which the development impact fee is
imposed, list the specific public improvements to be constructed, and describe the estimated cost
of these facilities.
This fee shall be adjusted as provided in the resolution setting the specific amount of the Fee.
17.65.070 Calculation and Payment of the Traffic Impact Fee
(a) Fee Calculation. The Public Works Director shall be responsible for calculating the Fair
Share Traffic Impact Mitigation Fee required by this Chapter, in accordance with the Fair
Share Traffic Impact Mitigation Fee Schedule adopted by resolution of the City Council.
The applicable amount of the fee shall be estimated at least 60 days prior to the first
public hearing for any discretionary planning approvals required by City Zoning and
Subdivision Ordinance. The estimated fee shall identify the use category, the vehicle
trip-miles for the use and the total estimated for fee based upon the proposed size of the
developments. The fee estimated shall be recalculated as needed at the time a building
permit is issued, based on the vehicle trip generation characteristics of the final
development plan for which the building permit is issued.
(b) Payment Procedure for Commercial or Industrial Development Projects. Fees
required by this Chapter from a New Commercial or Industrial Development Project shall
be paid at the time that the City issues a building permit for the Project. (
(c) _Payment Procedure for Residential Development Projects. The fee required by this
Chapter from a New Residential Development Project shall be paid before final inspection
of the dwelling unit on which the fee was imposed. However, the Planning Director may
adopt procedures to advance the time the fee is due on Residential Development Projects
consistent with Government Code Section 66007, as amended.
12-3209.004/76802 2
Ordinance No. 3944
(d) Fee Payments for Phased Development Proiects. If a Development Project will be
constructed in phases, and separate building permits and certificates of occupancy will be
issued for each phase, fees imposed pursuant to this Chapter shall be calculated on the
basis of the vehicle trip characteristics of the entire Development Project. Payment of the
fees may be made separately for each phase, provided the amount paid for each phase
shall be equal to the percentage that the vehicle trips for that phase represent of the total
development project's vehicle trips. The fee per vehicle trip shall be the fee in effect at
the time payment is due. (3827-4/09,3879-6/10)
(e) Deposit of Fees. All Traffic Impact Fees collected shall be transferred for deposit into a
separate reserve account, as specified in this Chapter, and used solely for the purposes
specified in this Chapter. (3827-4/09,3879-6/10)
17.65.090 Fee Refunds. Upon application, fees collected by the City pursuant to this Chapter
shall be refunded only under the following circumstances:
(a) Erroneous or Illegal Collection. Fees will be refunded if the applicant demonstrates to
the satisfaction of the Public Works Director that they were erroneously or illegally
collected, or if the City is compelled to do so pursuant to a final judgment by a court of
competent jurisdiction. An application for a refund pursuant to this Section shall be filed
within ninety (90)days after the payment of the fees pursuant to Section 17.65.070.
(b) City Failure to Commit Funds. Pursuant to Government Code Section 66001(e), fees
will be refunded if the City fails to commit them to a surface transportation improvement
project of the nature or type identified in the Master Facilities Plan, which is part of the
Nexus Report, within five years from the date that the fees were collected from the
applicant. For purposes of this subsection, fees are deemed to have been "committed" if
they have been budgeted or otherwise encumbered by the City for an eligible
improvement, studies, design drawings or any necessary applications for approval by
other governmental agencies have been initiated, construction bidding has been initiated,
or improvements are under construction. Eligible refunds, plus interest at the City's
average annual cost of funds, will be made only upon an application filed within.180 days
of the expiration of the fifth anniversary of the fee payment.
17.65.100 Fee Credits for Construction of Citywide Surface Transportation Improvements
(a) An applicant for a New Development project shall be entitled to a credit against the
amount of the Master Facilities Plan otherwise required by this Chapter, if the applicant
agrees to dedicate right-of-way needed for, or construct a traffic improvement listed in the
Master Facilities Plan. No credit shall be given for site-related improvements or site-
related right-of-way dedications.
(b) Application. A separate application shall be filed for each adjustment request made
pursuant to this Section. Such application shall be filed with the Public Works Director
on a form provided by the Director, not later than:
(1) Thirty (30) days prior to the first public hearing on an applicable discretionary
permit application for the development project, pursuant to the City Zoning and
Subdivision Ordinance; or
(2) If no such discretionary permit is required, at the time of application for a
building permit for the development project. Each application shall provide the
documentation and assurances specified below.
12-3209.004/76802 3
Ordinance No. 3944
Any credit application shall be considered pursuant to Section 17.65.070 in the same
manner as the fee calculation adjustment.
(c) Credit for the Dedication of Non-Site-Related Right-of-Way. Credit for the
dedication of non-site-related right-of-way for streets or street segments listed in the
Master Facilities Plan shall be valued at 115 percent of the most recent assessed value as
determined by the Orange County Assessor, or at the fair market value established by a
private appraiser acceptable to the City. In no event shall the credit exceed the right-of-
way costs for the street segment specified in the Master Facilities Plan or other applicable
basis for the fee, nor shall the credit exceed the amount of the Fair Share Traffic Impact
Mitigation Fee that would otherwise apply. Credit for the dedication shall be provided
when the property has been conveyed at no cost to, and accepted by, the City in a manner
specified by the City.
(d) Credit for Construction of Non-Site-Related Improvements. Applications for credit
for construction of non-site-related improvements shall submit acceptable engineering
drawings, specifications and construction cost estimates to the Public Works Director.
The Director shall recommend to the Planning Commission the amount of the credit for
improvement construction based on either these cost estimates or alternative estimates if
the Director determines reasonably that the estimates submitted by the applicant are
either unreliable or inaccurate. In no event shall the amount of the credit exceed the
improvement cost specified in the Master Facilities Plan, or other applicable basis for the
fee, nor shall the credit exceed the amount of the Fair Share Traffic Impact Mitigation
Fee that would otherwise apply.
No final inspection or certificate of occupancy for the Development Project may be
issued until: (1) the construction is completed and accepted by the City; (2) a suitable
maintenance and warranty bond is received and accepted by the City; and (3) all design,
construction, inspection, testing, bonding and acceptance procedures are in strict
compliance with City paving, drainage and other applicable requirements.
17.65.120 Eligible Expenditures From Fee Reserve Account. All monies and interest
earnings in the Reserve Account established by this Chapter shall be expended on the
construction of surface transportation projects of the nature or type identified in the Master
Facilities Plan, or such other report as may be prepared from time to time to document the
reasonable fair share of the costs to mitigate the traffic impacts of new development. Such
expenditures may include, but are not necessarily limited to the following:
(a) Reimbursement for all direct and indirect costs incurred by the City to construct surface
transportation improvements pursuant to this Chapter, including the cost of land and right-
of-way acquisition, planning, legal advice, engineering, design, construction and
equipment.
(b) Reimburse the City for the construction of surface transportation projects of the nature or
type identified in the Master Facilities Plan, or such other report as may be prepared from
time to time to document the reasonable fair share of the costs to mitigate the traffic
impacts of new development constructed by the City with local funds from other sources.
(c) Costs of issuance or debt service associated with bonds, notes or other security instruments
issued to fund surface transportation improvements identified in the Master Facilities Plan.
(d) Reimbursement for administrative costs incurred by the City in establishing or maintaining
the Reserve Account required by this Chapter, including the cost of studies to establish the
12-3209.004/76802 4
Ordinance No. 3944
requisite nexus between the fee amount and the use of fee proceeds. City administrative
costs shall not exceed ten(10)percent of the Reserve Account balance in any fiscal year.
(e) No Reserve Account funds shall be used to pay for capital improvements that are
associated with existing arterial street segment or signalized intersection Level of Service
deficiencies, except to the extent that new development contributes to the further
degradation of operations, nor shall Reserve Account funds be used for periodic surface
transportation system maintenance.
SECTION 3. Sections 17.65.030, 17.65.040, and 17.65.080 are -hereby deleted in
entirety from this chapter.
SECTION 4. Section 17.65.050 is hereby added to this chapter, said section to read as
follows:
17.65.150 Severability. If any section, phrase, sentence, or portion of this Chapter is for any
reason held invalid or unconstitutional by any court of competent jurisdiction, such portions shall
be deemed a separate, distinct, and independent provision; and such holding shall not affect the
validity of the remaining portions thereof.
SECTION 5. All other sections of Chapter 17.65 not modified by this ordinance shall
remain in full force and effect.
SECTION 6. This ordinance shall become effective 30 days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 2 n d day of July , 2012.
Mayor
ATTEST: INITIATED AND APPROVED:
City Clerk Director of Pdblic Works
REVI ND APPROVED:
APPROVED AS TO FORM:
rty anager
City Attorney
12-1209.004176102 5
Ord. No. 3944
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN,the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of Huntington
Beach is seven; that the foregoing ordinance was read to said City Council at a regular
meeting thereof held on June 18, 2012, and was again read to said City Council at a
regular meeting thereof held on July 02, 2012, and was passed and adopted by the
affirmative vote of at least a majority of all the members of said City Council.
AYES: Shaw, Carchio, Bohr, Boardman
NOES: Harper, Dwyer, Hansen
ABSENT: None
ABSTAIN: None
I,Joan L.Flynn,CITY CLERK of the City of Huntington
Beach and ex-officio Clerk of the City Council,do hereby
certify that a synopsis of this ordinance has been
published in the Huntington Beach Fountain Valley
Independent on July 12,2012.
In accordance with the City Charter of said City
Joan L. Flynn, City Clerk C Clerk and ex-officio erk
3'
of the City Council of the City
Senior De ut Cit Clerk
of Huntington Beach, California