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HomeMy WebLinkAboutOrd for Adoption#1 12/4/89 1037DATE: 12/4/89 DECE--KB Inter- Coxn ORDINANCE FOR ADOPTION NO. I TO: FROM: SUBJECT: WI'LLIAM A. HUSTON, CITY MANAGER COHMUNITY DEVELOPMENT DEPARTMENT ESTABLISHMENT OF TRANSPORTATION IMPROVEMENT PROGI~tM AREAS AND DEVELOPMENT FEES RECOMMENDATION It is recommended that the City Council: 1) M.O. Have reading by title only and adopt Ordinance 1037. 2) Adopt Resolution No. 89-165 BACKGROUND P~ND DISCUSSION After a publ~-c hearing, the City council at their regular meeting on November 20th introduced Ordinance 1037. A Draft of Resolution No. 89-165 establishing Transportation System Improvement Program Areas and Development Fees was also presented for City Council information after adoption of Ordinance 1037, it would be appropriate for the City Council to also adopt Resolution NO. 89- 165. A copy of the November 20, 1989 agenda item discussion on each matter is attached. Christine Shingleto.~ - Director of Community Development CAS:pef , , , TO:..~ · FROM: SUBJECT: . . WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT ESTABLISHMENT OF TRANSPORTATION IMPROVEMENT PROGRAM AREAS AND DEVELOPMENT FEES RECOMMENDATION M.O. Waive further reading of Ordinance 1037 and have first reading by title only. M.O. Introduce Ordinance 1037. B~CKGROUND. AND.DISCUSSION Based on actions taken by each respective City 'Council on November 6, 1989, the City of Tustin and Santa Ana entered into a Joint Powers Agreement which-created a Transportation System Improvement Authority. The purpose of said Agreement is for Santa Ana and Tustin to jointly develop and maintain a program for transportation system impr6vements in certain Transportation System Improvement Program (TSIP) Areas referred to as TSIP-:-Area A and B, to ~omprehensively identify all needed transportation system Improvements and their priority in each TSIP Area, to determine the appropriate developer fees.to finance said improvements, and. to control the expenditure of appropriate development fee revenues for areawide transportation improvements which benefit each respective TSIP Area. Environmental Impact reports and preliminary traffic studies within each TSIP Area indicated critical deficiencies in the circulation system serving each TSIP Area which could not be corrected nor fully funded from traditional revenue sources without the financial assistance of developing properties. Another alternative is to assign each developer mitigating improvements on a case by case basis. However, critical deficiencies are areawide improvements and this would prove difficult to assign or complete in pieces. A partial list of improvements prepared by the City of Santa Ana in the vicinity of TSIP A identifies that over twenty-two million dollars in areawide traffic improvements are needed benefitting both cities which include the widening of Grand Avenue on the east side between First and Fourth Streets, the widening of First Street and Fourth Street at the Costa Mesa Freeway and intersection City Council ReDort Transportation System ImproVement Program No~ember 20, 1989 Page 2 improvements at Fourth and Yorba, and Tustin Avenue and Seventeenth Street. ... Preliminary transportation system im roveme B ~.Wlthln the City of T,,~ ...... P nt co~to in TSIP Area milli~- ~,,--- ~.. _ ~~, u~n De expected ~ ......... _..~__-V ~~r~, WhiCh includes the exe~^- _JL. ~.,c=uu uwen~y =~=enslon of Tustin D~-~ ~--= .... 7~..~ju~ u~ ~ewport Avenue s= .... ~u~ ui an overpass at Edi.nger, widehing of Edinger and Red Hill and extension of Jamboree Road to Barranca. · since future developments within prescribed TSIP Areas will benefit from construction of transportation s stem i determined that fut _ Y . mprovements, it was · . ute development shoul~ a a ' costs in the City. ~ .... ~ ......... P Y port~on of these = ~-~xn~ ru=ure ~evelopment within each TSIP Area without developer contributions towa · ~ir~ulation improvements wou~ ~^ ~_= .... . rd funding needed ne ....... ~ ~= ~n3urlous ~o the public safety, u.&=n anG welfare. As a result, Section 3 of the approved Joint Powers Agreement legally obligates the City of Tustin to adopt by January 1, 1990 the following interim TransPortation System ~.~mprovement Development Pe~s: TSIP A 2% of the cost of construction _TSIP Area B An amount based on the square footage of added gross floor area by land use as follows: Commercial/office R&D Industrial $2.60 per square foot of building floor area $1.80 per square foot of building floor area $1.00 per square foot of building floor area Upon completion of comprehensive traffic studies within .each TSIP Area within approximately 180 days the TSIP Authority may recommend modifications to the interim fee program to reflect the adopted TSIP. for each TSIP Area. Any future fee increases would require future City Council action. .. ' Comrnu~ Dovoloprnont Dopartme~, , · City Council Report Transportation System Improvement Program November 20, 19.89 Page 3 Payment of the Development Fee would be required for any construction or improvement project which would result in a new building or structure or an increase in floor area within a TSIP Area provided said improvements-exceed $20,000 in value. Fees would not be required for construction of single family residential units and accessory structures, tenant improvements which will not increase floor area, off-street parking facilities and any c°nstruction'for~which a fee'may not be lawfully imposed'by State law. As noted above, the City of Tustin is now legally obligated to adopt a Transportation System Improvement Fee Program. If the City does not ado~t the prescribed fee program identified above, provisions contained in the Joint Powers Agreement would require the City to pay the TSIP Authority the amount of the otherwise required Development Fee out of City General Funds. In compliance with provisions of the recently adopted JPA, staff have prepared an enabling ordinance and accompanying resolution · hich would designate certain TSIP Areas and set actual development _ees in each TSIP area. Ordinance No. 1037 would add Section 8101 k. to the Tustin City Code which would establish the authority of the City Council to create TSIP Areas and authorize the City Council to establish fees by resolution that developers must pay for transportation improvements located in or benefitting a TSIP Area. Resolution No. 89-165 would establish TSIP Area A and B as shown on Exhibit A accompanying the Resolution. Area A is located in the northwest portion of the City north of the I-5 freeway, west of a portion of Newport Avenue and Prospect Avenue. Area B is located in the southerly portion of the City, south of the I-5 freeway. Development Fees would be collected as of January 1, 1990 and would be required to be in effect pursuant.to the JPA as noted above. Commu Y Development Departme.... City Council Report ?ransportation SYstem Improvement Program November 20, 1989 Page 4 ~ONCLUSION Provisions of the recently approved JPA between Santa Ana and Tustin legally obligate the City to have in place Transportation System Improvement Program Development Fees by January Attached for the City Council is a recommended enabling 1, 1990. ordinance for introduction on November 20, 1989 and Resolution establishing TSIP Area A and B and setting the Development Fee for each area for adoption on December 4, 1989. Christine ~le-~-~ ~ Director of Community Development CAS:pef -~tachments: Ordinance No. 1037 Resolution No. 89-165 Commur, . Development Dopartmer, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 ORDINANCE NO. 1027 AN ORDINANCE 'OF THE CITY OF TUSTIN AMENDING THE TUSTIN CITY CODE BY ADDING SECTION 8101 k. TO ESTABLISH A TRANSPORTATION SYSTEM IMPROVEMENT DEVELOPMENT FEE ~he City Council of the City of Tustin does hereby ordain as ~ollows: Section 1. Section 8101 of Chapter 1, Article 8 of the Tustin City Code is amended by adding subsection 8101 k. which subsection shall read as follows: K. Transportation System Improvement Development Fee le In addition to any other charges or improvement requirements, there shall be a special fee required as a condition precedent to the issuance of certain building permits for construction or improvement on those properties lying at least partially within any portion of the City designated by resolution of the City Council as a Transportation System Improvement Program Area. · The Building Official shall require the payment of a special fee in the amount established and regulated by resolution of the City Council within a Transportation System Improvement Program Area before .a building permit will be issued when an application for a building permit indicate~ the following: A construction or improvement project which will result in a new building or structure, or an increase in floor area on a parcel of land which lies wholly or partially within the boundaries of a Transportation Improvement Program Area; and be The estimated cost of the proposed construction or improvement, as determined by the Building Official will exceed twenty thousand dollars ($20,000.00). For.purposes of this section the valuation per square foot shall not exceed that listed in the latest edition of Building Standards Magazine containing a building valuation data chart. · The.following construction and improvement projects are specifically excluded from the requirements of the section. a. Construction of single family residential units 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ordinance Page 2 · · · 37 and accessory structures. Tenant improvements and maintenance work which will not increase the floor area of existing structures. c. Off-street parking facilities. de Any construction or improvements aS to which a development fee may not be lawfully be imposed by State law. Any resolution of the City Council establishing a Transportation System Improvement Program Area shall have affixed thereto a map specifically describing the boundary of such Transportation System Improvement Program Area and shall be on file in the office of the City Clerk. The purpose of a Transportation SYstem Impr0wement Program Area is to identify and designate ~hose areas where the transportation system may experience a significant reduction in the level of service unless corrective measures are instituted concurrent with increased transportation demands. Fees collected for building projects and improvements on properties in Transportation Systems Improvement Program Areas shall be used to improve the areawide transportation system within such area, except said fees may be expended for improvements outside the area when such improvements will substantially .benefit the' transportation system within the area. Ail monies received from fees collected pursuant to Section 8101 k. for permits issued within a Transportation System Improvement AuthQrity upon direction of the City Manager pursuant to the provisions of the Joint Exercise of Powers Agreement between the City of Tustin and the City of Santa Aha creating the Tustin-Santa Aha Transportation System Improvement Authority. 1 2 3 4 5 6 8 9 10 11 12 13 14 ~5 16 17 18 19 20 21 22 23 24 25 26 27 28 ~rdinance Page 3 · 1037 PASSED AND ADOPTED at a regular meeting of the City Council held ~n the day of , 1989· Ursula E. Kennedy Mayor Mary E. Wynn City Clerk 1 RESOLUTION NO. , 165 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN ESTABLISHING TRANSPORTATION SYSTEM IMPROVEMENT PROGRAM AREAS AND SETTING INTERIM DEVELOPMENT FEES THEREFORE WHEREAS, Section 8101 k. of the Tustin City Code establishes the authority of the City Council to create Transportation System Improvement Program Areas and to establish fees on development in such areas to pay for transportation system improvements located in or benefitting such areas; and WHEREAS, the City Council deems it appropriate to establish' two Transportation System Improvement Program ("TSIP") Areas in Tustin, hereinafter referred to as TSIP Area "A" and TSIP Area "B" which are identified in Exhibit "A" attached hereto and incorporated herein by reference, as distinct TSIP Areas and to establish interim transportation system improvement development fees in each area; and WHEREAS, a partial list of improvements prepared by the City of Santa Ana in the vicinity of TSIP Area "A" shows that over twenty-two million dollars ($22,000,000) in public improvements are needed which include the widening of Grand Avenue on the east side between First and Fourth Streets, the widening of First Street and Fourth Street at the Costa Mesa Freeway, intersection improvements at Fourth Street and Yorba, and intersection improvements at Tustin Avenue and 17th Street; and WHEREAS, preliminary transportation system improvement costs in TSIP Area "B" within the City of Tustin are expected to exceed twenty million dollars ($20,000,000) and will include the extension of Newport Avenue, the extension of Tustin Ranch Road, the construction of an overpass at Edinger, the widening of Edinger and Red Hill, and the extension of Jamboree Road to Barranca; and WHEREAS, the Transportation System Improvement Program will be applied to all types of development projects including residential, commercial, office and industrial, subject to certain limited exceptions set forth in Section 8101 k. of the Tustin City Code; and WHEREAS, the use of the fee for transportation system improvements is reasonably related to all types of development projects because the owners, the occupants and visitors of all types of uses will be benefitted by improved vehicular traffic flow; and WHEREAS, the need for the pUblic facilities is reasonably related to all types of development projects because all types of development projects generate vehicular traffic; and 2 10 11 12 13 14 1§ 17 18 19 20 21 22 24 25 26 27 28 WHER~ the restriction of the % of fees to transportation system imp~¢ements which are located An, or which substantially benefit, the area of the city from which the fees are derived assures that the fees derived from any given development project are used to provide those transportation improvements which most directly address the needs created by such development projects; and WHEREAS, allowing further development within each TSIP Area without developer contributions toward.funding needed circulation improvements would be injurious to the public safety, health and welfare. NOW, THEREFORE, be it resolved by the City Council of the City of Tustin as follows: 1. TSIP Areas "A" and "B", consisting of that territory identified in Exhibit "A", are hereby established. 2. Effective January 1, 1990, the fee to be charged pursuant to Tustin City Code Section 8101 k. for Transportation System Improvement Areas "A" and "B" are hereby established as follows: A. For TSIP Area "A" two percent (2%) of the costs of construction or improvement which is the subject of a building permit application for which payment of a fee is required by Section 8101 k. B. For TSIP Area "B" an amount based upon the square footage of added gross floor area by land use as follows: Commercial/Office R&D Industrial $2.60 per square foot of building floor area $1.80 per square foot of building floor area $1.00 per square foot of building floor area C. The purpose and use of the above said fees is set forth in Section 8101 k. of the Tustin City Code as follows: "The purpose of a Transportation System Improvement Program is to identify and designate those areas where the transportation system may experience a significant reduction in the level of service unless corrective measures are instituted concurrent with increased transportation demands. Fees collected for building projects and improvements on properties in a Transportation System Improvement Program ARea shall be used to improve the areawide transportation system within such area except said fees may be expended for improvement outside the area when such 10 i1 15 14 15 16 17 18 19 20 21 22 24 25 26 27 28 improvements will s. stantially benefit Transportation System within the area." the PASSED AND ADOPTED at a regular meeting of the City Council held on the day of November, 1989. Richard B. Edgar Mayor Mary E. Wynn City Clerk CFI:cas(Q7) W/S MILLWO~_ NIS FAIRHAVEN WIS EASTWOOD NJ8 2ND NI S 19TH NIS FRUIT N/S FOURTH NIS SEVE~EENTH OTH A ~Am IRVINE McFADDEN d BENEFIT AREA LEGEND N/S - NORTH SIDE SiS - SOUTH SIDE W/S - WEST SIDE E/S - EAST SIDE ~ - CITY OF TUSTIN ~ - CITY OF SANTA ANA NORTH NOT TO SCALE T~RANSPORTATION SYSTEM IMPROVEMEN'; PROGRAM (TSIP) BENEFIT AREAS EXHIBIT