Monrovia Municipal Code Ch. 3.22 Traffic Impact Fees

(A) This chapter shall be known and may be cited as the "Traffic Impact Fee Ordinance."

(B) The City Council has the authority to adopt this chapter pursuant to Cal. Gov't Code § 66000 et seq. and the general laws of the State of California.

(C) New development within the city has and will result in additional growth and that such growth will place additional burdens on various city facilities, infrastructure, and services ("facilities"). Those impacts will require an expansion of services and infrastructure in order to meet and accommodate them, which revenues generated through property taxes and other means are generally insufficient to accommodate. The implementation of this chapter is necessary to require developers to contribute their proportionate share of revenue necessary to accommodate the impacts of their projects in a way that has a rational nexus to the proposed building, development or addition, and for which the need is reasonably attributable to the proposed development.

(Ord. 2019-05 § 7, 2019)

Except as otherwise provided in this chapter, the applicant for a building permit proposing new development shall pay the following development impact mitigation fees according and pursuant to the procedure set forth in this chapter, along with any other required fee or fees established in this code or other applicable law:

(A) A traffic impact fee (TIF) is hereby established on new development within the mitigation area established by the traffic impact fee study to pay for transportation improvements identified in the adopted Traffic Capital Improvement Plan (T-CIP), as the same may be amended by the City Council from time to time. The City Council shall, in a resolution, set forth the specific amount(s) or rate(s) of the fee, describe the area in which the TIF is to be imposed, and list the specific public improvements to be financed by the TIF, describe the estimated cost of these facilities, describe the reasonable causal relationship between the fee and the impacts associated with various types of new development and set forth time for payment.

(B) The amount of the TIF shall be established, and may be updated from time to time, by resolution approved by the City Council consistent with the procedural requirements of the Mitigation Fee Act.

(C) On a biennial basis, the City Council shall review the proposed transportation improvements to be funded with revenue from the TIF as part of the T-CIP and determine whether the fees continue to be reasonably related to the impacts of developments and whether the described public facilities are still needed.

Ord. 2019-05 § 7, 2019)

The revenues raised by payment of the TIF imposed by this chapter shall be held placed in a separate and special account and such revenues, along with any interest earnings on that account, shall be used solely to pay for the city's future construction of facilities described in the resolution enacted pursuant to § 3.22.020, or to reimburse the city for those described or listed public facilities constructed by the city with funds advanced by the city from other sources, or to reimburse developers who have been required or permitted to construct facilities included in the applicable adopted Capital Improvement Plan and who have not received a full credit against TIF due.

(Ord. 2019-05 § 7, 2019)

(A) Calculation of impact fees. The Director of Community Development or designee shall be responsible for the calculation of the fees required by this chapter. The amount due under this chapter shall be determined based on the TIF rate at the time of submittal into building plan check for the project. Following project submittal, the city shall provide the applicant with notice in writing, a statement of the amount of the TIF and notification of the ten-day appeal period.

(B) Collection of impact fees. The Building Division shall be responsible for the collection of fees required by this chapter. Any applicant for a building permit for new development to which the fees imposed by this chapter apply shall pay the fees due prior to the issuance of final certificate of occupancy. Nothing in this chapter shall be deemed to change the due date for payment of other fees imposed according to applicable law.

(1) For multi-family developments, the entire TIF fee must be paid at the time final occupancy is issued for the first dwelling in the development covered by that building permit.

(2) If a new development will be constructed in phases and separate building permits will be issued for each phase, TIF imposed pursuant to this chapter may be made separately prior to the issuance of a certificate of occupancy for each phase of the project so that the amount of the fees due shall be limited only to the actual construction in each phase.

(Ord. 2019-05 § 7, 2019)

The following shall be exempt from the fees established by this chapter:

(A) Projects initiated by the city, or projects owned or initiated by any other government entity intended to serve a public purpose. Proprietary projects or projects that benefit private entities are not exempt from the payment of fees imposed by this chapter.

(B) Change of use of existing structures with no additional floor area added.

(C) New residential development consisting of the construction of a total of four or fewer residential units, except that a residential development of four or fewer units shall become subject to the requirements of this chapter if the development is converted to a project of more than four units.

(D) (1) Residential units which are deed or covenant restricted for occupancy only by persons of very low, low, or moderate income according to then-current income definitions for Los Angeles County for at least 55 years following occupancy.

(2) For mixed income or mixed use developments (residential and mixed use), the total TIF due shall be reduced by an amount equivalent to the fee per income restricted residential unit. To determine the reduced TIF due, the total TIF due without reduction shall be divided by the total number of units to determine the TIF per unit. The number of income restricted units shall be multiplied by the TIF per unit, and the resulting total shall be subtracted from the total TIF. In mixed use developments, no credit shall be applied to TIF due for commercial portions, and the TIF for commercial development shall not be calculated as a part of the total TIF for residential units.

(E) Non-residential development of less than 1,000 square feet in total floor area.

(F) Rebuilding of structures damaged by fire, earthquake and other natural disasters that would otherwise be subject to the impact fee. The floor area of the rebuild must be the same size as the original building floor area or smaller.

(G) Credit for existing development. For a project that involves the demolition of an existing structure and the construction of a new structure, the applicant shall be entitled to a credit in the amount of the TIF associated with the building size of the structure that is demolished. The methodology for determining the credit shall be contained in the applicable resolution.

(H) Accessory dwelling units and second units as defined in this code.

(Ord. 2019-05 § 7, 2019)

Whenever a developer is required, as a condition of approval or mitigation measure for a new development permit, to construct a public facility described in the adopted T-CIP, the developer shall receive in-lieu credit against applicable TIF for the developer's actual cost of construction, on a dollar for dollar basis, against the TIF which would otherwise be charged. The in-lieu credit shall be no more than the estimated amount contained in the adopted Capital Improvement Plan adjusted for inflation, and shall not include any amount for the developer's profit associated with constructing the improvement.

(Ord. 2019-05 § 7, 2019)

Any person subject to the fees imposed by this chapter may apply in writing to the City Council for a reduction, adjustment, or waiver of the fee based on any one or more of the following factors: (1) that there is an alleged absence of reasonable relationship or nexus between the impacts of that development and the amount of the fee charged or the type of facilities to be financed by the TIF as identified in the T-CIP; (2) that the city has incorrectly calculated the TIF owed; or (3) that the law otherwise requires the relief sought.

(A) The appeal application shall be made in writing and filed with the City Clerk during regular business hours as posted not later than ten days after the city issues the statement of the fees owed applicable to the project.

(B) The appeal application shall state in detail the factual basis, pursuant to this section, for the claim of waiver, reduction or adjustment. The City Council shall consider the application at a duly-noticed public hearing within 60 days after the filing of the fee adjustment application. The City Council shall issue a written decision on the appeal not more than 30 days following the closure of the public hearing. The decision of the City Council shall be final.

(C) If a reduction, adjustment or waiver is granted, any change in use within the project that will intensify the impacts of the original project shall invalidate the waiver, adjustment or reduction of the fee.

(Ord. 2019-05 § 7, 2019)

The amount of the fees imposed by this chapter may be adjusted annually for inflation on each July 1 by the annual percentage change in the California Construction Cost Index (CCCI), or any similar successor index, over the previous 12-month period as specified in the resolution that adopts the fee amount or based on the change in costs based on the periodic update of the T-CIP prepared and adopted pursuant to this chapter and the Mitigation Fee Act.

(Ord. 2019-05 § 7, 2019)

The city shall collect and expend revenue collected pursuant to this chapter only for the purposes, and within the time, permitted by this chapter and the Mitigation Fee Act. Revenue collected shall be separately accounted for and held pursuant to the requirements of Cal. Gov't Code § 66006 or any successor statute.

(Ord. 2019-05 § 7, 2019)