Scotts Valley Municipal Code Ch. 16.58 Impact Mitigation Fees

A. The city council finds that in order to implement the goals and objectives of the circulation element of the general plan of the city and to mitigate the cumulative impacts to the city's transportation system caused by new development in the city, certain public roadway and intersection improvements to the transportation system need to be constructed. The city council determines that a cumulative traffic impact mitigation fee (herein "fee") is needed in order to finance these public improvements and to pay for new development's fair share of their construction and related costs. In establishing the fee described in the following sections, the city council finds the fee to be consistent with its general plan and, pursuant to Government Code Section 65913.2, has considered the effects of the fee with respect to the city's housing needs as established in the housing element of the general plan.

B. The city council further finds that all new development contributes to cumulative traffic impacts, which are significant, widespread, off-site impacts to the transportation system that are difficult to measure and mitigate on a project-by-project basis, yet are cumulatively measurable and mitigable. The city has completed a city-wide transportation study entitled "Scotts Valley Citywide Transportation Study - Final Report" dated November 1988, and prepared by TJKM Transportation Consultants. In addition, a report has been prepared by the director of public works/city engineer, dated November 15, 1988, and entitled "Cumulative Traffic Impact Mitigation Fee." The study and the report are on file in the office of the city clerk and with the public works department.

C. The study identifies the total cumulative traffic impacts of projected new development and the method for determining each individual new development's share of that traffic impact.

D. The cumulative traffic impact mitigation fee will assure that each new development bears the burden of its individual, incremental share of those improvements determined to be necessary to assist in accommodating the cumulative traffic impacts caused by new development. The fee shall be for the future construction of transportation system improvements described in the resolution enacted pursuant to Section 16.52.020 (and as the resolution may be amended from time to time thereafter).

E. These cumulative traffic impacts and the referenced improvements needed to mitigate them, as well as the fee established pursuant to Section 16.52.020, are over and above and separate from and independent of, any street improvements and traffic-related improvements including, without limitation, frontage improvements, street and intersection improvements that provide circulation within a development or access to it, and off-site improvements, which are necessary to serve a development and which the developer is required to construct as a condition of approval of his development, all of which are required under other city ordinances (including, without limitation, the zoning ordinance and the subdivision ordinance).

(Ord. 16.73 § 1, 1988)

A cumulative traffic impact mitigation fee is established on issuance of all building permits for development in the city to pay for transportation system improvements attributable thereto. The city council shall, by resolution, set forth the specific amount of the fee, describe the benefit and impact area on which the development fee is imposed, list the specific public improvements to be financed, describe the estimated cost of these facilities, describe the reasonable relationship between this fee and the various types of new developments, as well as any other pertinent provisions or matters it determines appropriate, all in conformance with the applicable provisions of Sections 66000 et seq. of the Government Code. On an annual basis, the city council shall review this fee to determine whether the fee amounts are reasonably related to the cumulative impacts of developments on the city transportation system and whether the described public facilities are still needed, require modification or should be replaced by other public facilities necessary to mitigate cumulative impacts to the city's transportation system caused by new development.

(Ord. 16.73 § 2, 1988)

A. "City administrator" means and refers to the city administrator of the city or his duly authorized representative.

B. "Director of public works" or "director" means and refers to the director of public works of the city or his duly authorized representative.

C. "Gross square footage (G.S.F.)" means all of the floor area confined by the outside surface of the exterior walls of a building, except for that floor area devoted solely to vehicle parking or circulation.

D. "New development" means any construction, addition, enlargement, installation, conversion, or renovation of a structure that requires the issuance of a building permit and that has the potential to add one or more peak trips to the city's transportation network.

E. "Peak trip" means an arrival or departure of a motor vehicle generated by a development during the hour of the highest volume of traffic on the street network in the vicinity of the development. For residential developments peak trips are expressed on a per dwelling unit basis. For commercial and industrial developments peak trips are expressed on a per one thousand gross square footage basis or equivalency.

(Ord. 16.73 § 3, 1988)

The revenues raised by payment of this fee shall be placed in a separate and special account and such revenues, along with any interest earnings on that account, shall, subject to Section 16.58.110, be used solely to:

A. Pay for the city's future construction of improvements described in the resolution enacted pursuant to Section 16.58.020 (and as the same may be amended from time to time hereafter), or to reimburse the city for those described improvements constructed by the city with funds advanced by the city from other sources; or

B. Reimburse developers who have been required or permitted by Section 16.58.140, to construct such improvements which are oversized with supplemental size, length, or capacity, all in accordance with and subject to the provisions of Section 16.58.140. (Ord 16.73 § 4, 1988)

Except for the exempt categories of new development listed in Section 16.58.060, all new development for which a building permit is required for construction or reconstruction is subject to the payment of the cumulative traffic impact mitigation fee established pursuant to Section 16.58.020.

(Ord. 16.73 § 5, 1988)

The following categories of new development are exempt from the fee:

A. The addition, extension, conversion, enlargement, or renovation of a residential structure that does not add one or more dwelling units, as defined in the city building code and/or zoning ordinance.

B. New development that has been heretofore required or conditionally required by the city to pay to or place on deposit with the city a fee or assessment or an enhanced fee or assessment as a condition of approval of a discretionary development permit, if the purpose of the fee as stated in the permit conditions of approval was to mitigate the project's share of cumulative traffic impacts. The planning department shall provide the building department with a current list of projects that shall receive this exemption.

(Ord. 16.73 § 6, 1988)

A. Fees required pursuant to this chapter shall be paid to the director of public works on or before the date of final inspection or the date the certificate of occupancy is issued. Notwithstanding anything to the contrary herein, fees may be required to be paid at an earlier time if (a) it is determined that the fees will be collected for public improvements or facilities for which an account has been established and funds appropriated and for which the city has adopted a proposed construction schedule or plan prior to final inspection or issuance of the certificate of occupancy, or (b) the fees are to reimburse the city for expenditures previously made. The determinations herein referenced shall be made by the city administrator (or his duly authorized representative) or the city council. "Appropriated," as used in this subsection, means authorization by the city council to make expenditures and incur obligations for specific purposes.

B. No city official or department shall authorize release of utilities for any new development that is subject to the fee under Section 16.58.050 until notification is received from the director of public works that all cumulative traffic impact mitigation fees required by this chapter have been paid or no fees are required of the project due to fee credits or reductions received according to Sections 16.58.120, 16.58.130 or 16.58.140.

C. Upon an applicant's request, the building official may authorize temporary release of utilities prior to final inspection, as an aid to construction, if the applicant deposits with the director of public works a certificate of deposit equal to the amount of required fees, and the director notifies the building official of the receipt of said deposit.

D. In the event fees are not paid when due, no further inspections or approvals shall be given by the city with respect to said development, and no final inspection, certificate of occupancy, or utility release of occupancy shall be given with respect thereto until such fees or such portion thereof as is then due, has been paid in full.

E. "Final inspection" or "certificate of occupancy," as used herein, have the same meaning as described in Sections 305 and 307 of the Uniform Building Code, International Conference of Building Officials, 1985 Edition. "Utility release of occupancy," as used herein, refers to release of a building by the city for the purpose of being authorized to receive utility service.

(Ord. 16.73 § 7, 1988)

A. Each applicant, upon application for a building permit for new development, shall submit the following information to the director of public works on a form provided by the director, and shall provide such additional information as may be requested by the director for greater accuracy:

1. The proposed number and type of residential units and/or gross square footage of building area for each use category listed in Section 16.58.090;

2. The existing number and type of residential units and/or gross square footage of building area for which a credit is sought under Sections 16.58.120, 16.58.130 or 16.58.140; and

3. The proposed and existing uses in the development shall be assigned to use categories according to the list established pursuant to Section 16.58.100.

B. If the new development does not fit within any category of use set forth in the list established pursuant to Section 16.58.100, then the director of public works shall calculate the fee based upon trip generation rates specific to the type of development, using the cost-per-trip formulation shown in Section 16.58.090.

C. All fees shall be calculated by the director in accordance with the fee schedule set forth in the resolution to be adopted pursuant to Section 16.58.020.

D. The building permit issued for new development shall indicate whether a cumulative traffic impact mitigation fee is required to be paid and, if so, the amount and the time of payment.

(Ord. 16.73 § 8, 1988)

As provided in Section 16.58.020, the city council shall adopt a resolution establishing a cumulative traffic impact mitigation fee schedule that sets forth fee rates for development. The fee rates shall be determined for the following land use categories in accordance with the formula set forth below:

[Figure]

* Gross square footage is divided by 1000.

** The applicable fee rate shall be used in calculations for all projects, except that cost per trip shall be used in accordance with Section 16.58.080(B). Fee rate consists of cost per trip X peak trip-generation rate (per dwelling unit in the case of residential development and per 1000 gross square footage in the case of commercial and industrial development).

The single-family land use category represents all single-family residential uses in the city's zoning ordinance and corresponds to the same category set forth in the study referenced in Section 16.58.010.

The multi-family land use category represents all multifamily residential uses in the city's zoning ordinance and corresponds to the same category set forth in the aforesaid study.

The commercial land use category includes all commercial uses (including, without limitation, professional office uses) in the city's zoning ordinance and corresponds to the same land use category set forth in said study.

The industrial land use category includes all industrial uses in the city's zoning ordinance and corresponds to the same land use category set forth in said study.

(Ord. 16.73 § 9, 1988)

The director of public works shall maintain a list of the types of new development that fall within the land use categories shown in Section 16.58.090, to assist in determining the fee rates that should apply to a particular project.

(Ord. 16.73 § 10, 1988)

A. The improvements described in the resolution enacted pursuant to Section 16.58.020, and any subsequent amendments, changes, additions or deletions thereto, shall be set forth in a transportation system capital facilities plan. The plan shall, among other things, prioritize the improvements to be constructed. The city shall adopt an operating budget in connection with said plan. The plan and operating budget shall be adopted at such time as the city council determines appropriate in the exercise of its discretion. The plan may be a separate plan or may be part of a capital facilities plan that treats other services and facilities provided by the city including, without limitation, sewer and storm drainage.

B. The fees collected under this chapter and all earnings from investment of the fees shall not be expended or committed for any improvement described in the resolution enacted pursuant to Section 16.58.020 (and any subsequent amendment thereof) until such time as (1) the aforesaid plan is adopted by the city council and (2) the improvement project has been processed in accordance with the law and approved by the city council.

C. The fees collected under this chapter and all earnings from investment of the fees shall be expended solely for funding the costs of the aforesaid improvements. These costs are deemed to be costs directly related to mitigation of the cumulative impacts that new development in the city places upon the transportation system. The costs to be covered by the fee may include without limitation, costs of construction, land and right-of-way acquisition, engineering, and other relevant costs; provided, however, that notwithstanding the foregoing, the fee established pursuant to Section 16.58.020 and the costs to be covered thereby, shall be consistent with and subject to applicable requirements and limitations of Government Code Section 66000(b) and any other applicable provisions of law.

(Ord. 16.73 § 11, 1988)

A. 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 zoning ordinance, including a nonconforming use.

B. New development that will replace development that is partially or totally destroyed by fire, flood, earthquake, mudslide, or other casualty or act of God, is entitled to a fee credit, if the development that was partially or totally destroyed was a lawful use under the zoning ordinance, including a nonconforming use, at the time thereof.

C. Credit for such eliminated development or development that is partially or totally destroyed (as above specified) shall be calculated by the director of public works in accordance with the fee schedule set forth in the resolution to be adopted pursuant to Section 16.58.020 and shall be applied to new development on the same site.

(Ord. 16.73 § 12, 1988)

A. An applicant that has been required by the city to construction any transportation system improvement(s) (or a portion thereof) described in a resolution adopted pursuant to Section 16.58.020 as a condition of approval of a development permit may request an in-lieu credit of cumulative traffic impact mitigation fees for the same development. Upon request, an in-lieu credit of fees shall be granted for improvements that mitigate all or a portion of a development's share of cumulative traffic impacts.

B. Only costs proportional to the amount of the improvement that mitigates cumulative impacts shall be eligible for in-lieu credit.

C. The applicant shall submit a traffic study and/or other documentation as may be appropriate, using methods acceptable to the director of public works, to support the application for in-lieu credit. The approval authority for the development permit shall determine whether improvements are eligible for in-lieu credit.

D. Fees required under this chapter shall be reduced by the actual construction costs of the in-lieu improvements, as demonstrated by the applicant and reviewed and approved by the director of public works. If the cost of in-lieu improvements is greater than required fees, this chapter does not create an obligation on the city to pay the applicant the excess amount.

E. An amount of in-lieu credit that is greater than the fees required under this chapter may be reserved and credited toward the fee of any subsequent phases of the same development, if determined appropriate by the director of public works. The director of public works may set a time limit for reservation of the credit. No interest shall accrue to the credit over time.

F. Credits shall be calculated by the director of public works in accordance with the fee schedule set forth in the resolution to be adopted pursuant to Section 16.58.020.

(Ord. 16.73 § 13, 1988)

Whenever a developer is required, as a condition of approval of a development permit, to construct any transportation system improvement(s) (or a portion thereof) described in a resolution adopted pursuant to Section 16.58.020 which improvement is determined by the city to have supplemental size, length or capacity over that needed to mitigate the cumulative traffic impacts of the development, and when such construction is necessary to ensure efficient and timely construction of the improvement or the facilities network, a reimbursement agreement with the developer and a credit against the fee, which would otherwise be charged pursuant to this chapter on the development project, shall be offered. The credit shall be applied with respect to that portion of the improvement which is attributable to mitigation of the cumulative traffic impacts caused by the development; and shall be determined, administered and processed in accordance with and subject to the provisions of Section 16.58.130. The amount to be reimbursed shall be that portion of the cost of the improvement related to providing supplemental size, length or capacity in excess of that attributable to mitigation of the cumulative traffic impacts caused by the development. The reimbursement agreement shall contain terms and conditions mutually agreeable to the developer and the city, and shall be approved by the city council.

(Ord. 16.73 § 14, 1988)

A developer of any project subject to the fee described in Section 16.58.020 may apply to the city council for a reduction or adjustment to that fee, or a waiver of that fee, based upon the absence of any reasonable relationship or nexus between the cumulative traffic impacts of that development and either the amount of the fee charged or the type of facilities or improvements to be financed. The application shall be made in writing and filed with the city clerk not later than ten days prior to the public hearing on the discretionary development permit application for the project, or if no discretionary development permit is required, at the time of the filing of the request for a building permit. The application shall state in detail the factual basis for the claim of waiver, reduction, or adjustment. The city council shall consider the application at the public hearing on the discretionary development permit application or at a separate hearing held within sixty days after the filing of the fee adjustment application, whichever is later; or within sixty days after the filing of the fee adjustment application if no discretionary development permit is required. The decision of the city council shall be final. The hearing on the matter shall be noticed, conducted and concluded in the same fashion and manner as prescribed by the laws of the city for hearings on discretionary development permits.

(Ord. 16.73 § 15, 1988)

Refunds of unexpended or uncommitted fees required pursuant to law shall be made to the then current record owner or owners of the development project or projects on a prorated basis.

(Ord. 16.73 § 16, 1988)

A. In case of noncompliance with this chapter, the cumulative traffic impact mitigation fees and interest that would have accumulated shall be calculated from the date that construction was completed and not from the date of discovery, complaint, or enforcement.

B. Payment of fees shall be enforced as a lien on the property.

(Ord. 16.73 § 17, 1988)

Failure of any city official or department to fulfill the requirements of this chapter shall not excuse any applicant from payment of cumulative traffic impact mitigation fees required by this chapter.

(Ord. 16.73 § 18, 1988)

A. If any clause, section, or part of this chapter, or any fee imposed upon any person or entity, is found to be unconstitutional, illegal, or invalid, such unconstitutionality, illegality, or invalidity shall affect only such clause, sentence, section, or part of this chapter, or such person or entity, and shall not affect or impair any of the remaining provisions, clauses, sentences, sections, or parts of this chapter or the effect of the chapter on other persons or entities.

B. It is declared to be the intention of the city council of the city that this chapter would have been adopted had such unconstitutional, illegal, or invalid clause, sentence, section, or part of this chapter not been included herein, or had such person or entity been expressly exempted from the application of this chapter. To this end the provisions of the chapter are severable.

(Ord. 16.73 § 19, 1988)