HomeMy WebLinkAbout2008-05-06; City Council; 19433; Traffic Impact fee updateCITY OF CARLSBAD - AGENDA BILL 11
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AB# 19,433
MTG. 5/06/08
DEPT. CA
TRAFFIC IMPACT FEE UPDATE
DEPT. HEAD Sty?
CITY ATTY. S&&
CITY MGR. (JJ
RECOMMENDED ACTION:
IntroduceOrdinance No.NS-890 amending Title 18, Chapter 18.42 of the Carlsbad Municipal
Code revising the Traffic Impact Fee in accordance with the City Council's direction at its meeting of
.April 22, 2008.
ITEM EXPLANATION:
Ordinance No. NS-885 was adopted by the City Council (3-2 Kulchin, Hall) at its meeting of
April 22, 2008. At that same meeting, the Council directed staff to return with an Ordinance that would
reduce the Traffic Impact Fees for a one-year period effective June 30, 2008 and provide a
grandfathering provision that would keep the fee at the current rate of $46/ADT for commercial and
industrial projects that applied for a building permit prior to April 8, 2008 and obtain a building permit
prior to September 30, 2008. Attached to this Agenda Bill is the recommended Ordinance
implementing the Council's direction. The Council further indicated that it would appoint an ad-hoc
sub-committee to study future road improvements to be included or removed from the program and to
give its report to the full Council within this one-year period.
FISCAL IMPACT:
The one-year reduction in Traffic Impact Fees will result in a reduction of revenue to the program in an
amount dependent on the number of building permits issued for residential, commercial, and industrial
development during that time period.
It is estimated that the implementation of the grandfathering provision as described above would
result in a reduction of up to $1.6 million in Traffic Impact Fee revenues when compared to the fees
adopted on April 22, 2008 or $800,000 when compared to the reduced fees as incorporated in the
attached ordinance.
If the Council were to implement an alternative grandfathering provision based on projects having
applied for a grading permit rather than a building permit by April 8, 2008, staff estimates that the
additional reduction in revenues would be on the order of $200,000 to $400,000 when compared to
the fee adopted on April 22, 2008 or $100,000 to $200,000 when compared to the reduced fees as
incorporated in the attached ordinance.
FOR CITY CLERKS USE ONL Y.
COUNCIL ACTION: APPROVED J*
DENIED 'D
CONTINUED D
WITHDRAWN D,
AMENDED tR
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
APPROVED AS AMENDED
D
D
D
D
DEPARTMENT CONTACTS:Ron Ball, 760-434-2801, rball@ci.carlsbad.ca.us
Marshall Plantz, 760-602-2766, mplan@ci.carlsbad.ca.us
Page 2
ENVIRONMENTAL IMPACT:
The Planning Director has determined that the 2008 Traffic Impact Fee program update and the fee
increase does not constitute a "project" and, therefore, is not subject to review under the California
Environmental Quality Act. The temporary reduction in fees represented by this Ordinance is similarly
not a "project". The roadways included in the program are part of the roadway network and included
in the Circulation Element of the Carlsbad General Plan and will be subject to environmental review
and approval pursuant to CEQA and/or the National Environmental Policy Act, as appropriate.
EXHIBITS:
1. Ordinance No. NS-890 amending Title 18, Chapter 18.42 of the Carlsbad Municipal
Code revising the Traffic Impact Fee in accordance with the City Council's direction at its
meeting of April 22, 2008.
2. Redline/strikeout version of Ordinance No. NS-890 amending Title 18, Chapter 18.42
of the Carlsbad Municipal Code revising the Traffic Impact Fee in accordance with the City
Council's direction at its meeting of April 22, 2008.
1
ORDINANCE NO. NS-890
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7 by the amendment of Section 18.42.050(a) to read as follows:
•18.42.050 Fee.
(a) The traffic impact fee of three hundred fifty-three dollars ($353) for each average
9
daily trip generated by a residential project and a traffic impact fee of one hundred forty-two dollars
10 ($142) for each average daily trip generated by a commercial or industrial project, pursuant to
Section 18.42.020(e), and adopted by Ordinance No. NS-885 adopted April 22, 2008 and effective
xb/felf I
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING TITLE 18, CHAPTER
18.42, OF THE CARLSBAD MUNICIPAL CODE REDUCING
THE TRAFFIC IMPACT FEE FOR A PERIOD OF ONE YEAR.
The City Council of the City of Carlsbad, California, hereby ordains as follows:
SECTION 1: That Title 18, Chapter 18.42 of the Carlsbad Municipal Code is amended
June 30, 2008, shall be reduced for a one-year period from July 1, 2008 to June 30, 2009, to two
hundred forty dollars ($240) for each average daily trip generated by a single-family residential
project, two hundred ninety dollars ($290) for each average daily trip generated by a condominium
residential project, three hundred seventy-three dollars and thirty-four cents ($373.34) for each
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average daily trip generated by a apartment residential project and ninety-six dollars ($96) for each16
average daily trip generated by a commercial or industrial project. Thereafter, the fees shall
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automatically revert to those amounts set forth at the beginning of this paragraph (a). The fees
18 shall be paid by the owner or developer prior to the issuance of any building permit or occupancy
19 permit for the project. The traffic impact fee shall be adjusted annually as part of the Capital
Improvement Program budget process, by two percent or the annual percentage change in the
Caltrans Construction Cost Index (12-month index), which ever is higher.
SECTION 2: That Title 18, Chapter 18.42 of the Carlsbad Municipal Code is amended
by the addition of Section 18.42.050(d) to read as follows:
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(d) Commercial or industrial projects that have a grading permit application on file prior24
to April 8, 2008 and have obtained a building permit prior to September 30, 2008 shall pay a traffic
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impact fee of forty-six dollars ($46) for each average daily trip generated by a commercial or
26 industrial project.
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SECTION 3: That Title 18, Chapter 18.42 of the Carlsbad Municipal Code is amended
by the amendment of Section 18.42.070 to read as follows:
3 "18.42.070 Use of Fees.
(a) All of the fees collected for a commercial or industrial project shall be allocated to a4
circulation improvement account and shall be expended only to build or finance circulation
5
improvements serving the city.
(b) All of the fees collected for each newly constructed residential unit, excepting the
portion defined in paragraph (c), shall be allocated to a circulation improvement account and shall
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be expended only to build or finance circulation improvements serving the city.
(c) A portion of the fees collected for newly constructed residential housing units,
excepting the fees collected for newly constructed housing units constructed for extremely low,
very-low, low and moderate income households as defined in California Health and Safety Code11
Sections 50105, 50106, 50079.5 and 50093, during the forty year period starting July 1, 2008 shall
12
be allocated to a separate circulation improvement sub account and shall be used to build or
13
finance circulation improvements to the Regional Arterial System as adopted by the Board of the
14 San Diego Association of Governments. For the year from July 1, 2008 to June 30, 2009, said
15 portion shall equal two thousand dollars per residential housing unit. Said portion shall be adjusted
annually as part of the City's Capital Improvement Program budget process, by two percent or the
annual percentage change in the Caltrans Construction Costs Index, (12-Month Index), whichever
is higher."
EFFECTIVE DATE: The Ordinance NS-885 was adopted at a noticed public hearing at
which time the City Council of the City of Carlsbad also considered the Traffic Impact Fee Update
Study which study and associated information was available to the general public for a period of at
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least fourteen (14) days prior to the public meeting. The fee established by that ordinance applies
22 to the issuance of any building permit, for any residential, commercial or industrial development.
23 This ordinance temporarily reduces the fee established by Ordinance No. NS-885 for a one-year
24 period and shall become effective on June 30, 2008.
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INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on
the 6th day of May. 2008, and thereafter.
PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad, California, on the day of , 2008, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
APPROVED AS TO FORM AND LEGALITY:
RONALD R. BALL, City Attorney
CLAUDE A. LEWIS, Mayor
ATTEST:
LORRAINE M. WOOD, City Clerk
(SEAL)
YN
1
2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING TITLE 18, CHAPTER
3 18.42, OF THE CARLSBAD MUNICIPAL CODE REDUCING
THE TRAFFIC IMPACT FEE FOR A PERIOD OF ONE YEAR.
4
The City Council of the City of Carlsbad, California, hereby ordains as follows:
5
SECTION 1: That Title 18, Chapter 18.42 of the Carlsbad Municipal Code is amended
c
by the amendment of Section 18.42.050(a) to read as follows:
7 "18.42.050 Fee.
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ORDINANCE NO. NS-890
(a) The traffic impact fee of three hundred fifty-three dollars ($353) for each average
daily trip generated by a residential project and a traffic impact fee of one hundred forty-two dollars
10 ($142) for each average daily trip generated by a commercial or industrial project, pursuant to
Section 18.42.020(e), and adopted by Ordinance No. NS-885 adopted April 22, 2008 and effective
June 30, 2008, shall be reduced for a one-year period from July 1, 2008 to June 30, 2009, to two
hundred forty dollars ($240) for each average daily trip generated by a single-family residential
13
project, two hundred ninety dollars ($290) for each average daily trip generated by a condominium
14 residential project, three hundred seventy-three dollars and thirty-four cents ($373.34) for each
15 average daily trip generated by a apartment residential project and ninety-six dollars ($96) for each
average daily trip generated by a commercial or industrial project. Thereafter, the fees shall
automatically revert to those amounts set forth at the beginning of this paragraph (a). The fees
shall be paid by the owner or developer prior to the issuance of any building permit or occupancy
permit for a-the project. The T traffic impact fees shall be adjusted annually as part of the Capitaln y
Improvement Program budget process, by two percent or the annual percentage change in the
20
Caltrans Construction Cost Index (12-month index), which ever is higher.
21
SECTION 2: That Title 18, Chapter 18.42 of the Carlsbad Municipal Code is amended
22 by the addition of Section 18.42.050(d) to read as follows:
23"
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(b) Commercial or industrial projects that have a building permit application on file prior to April 8,
2008 and have obtained a building permit prior to September 30, 2008 shall pay a traffic impact
fee of forty-six dollars ($46) for each average daily trip generated by a commercial or industrial
project.
1
2
3 "18.42.070 Use of Fees.
(a) All of the fees collected for a commercial or industrial project shall be allocated to a
4
circulation improvement account and shall be expended only to build or finance circulation
5
improvements serving the city.
c
(b) All of the fees collected for each newly constructed residential unit, excepting the
7"
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10
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SECTION 3: That Title 18, Chapter 18.42 of the Carlsbad Municipal Code is amended
by the amendment of Section 18.42.070 to read as follows:
portion defined in paragraph (c), shall be allocated to a circulation improvement account and shall
be expended only to build or finance circulation improvements serving the city.
(c) A portion of the fees collected for newly constructed residential housing units,
excepting the fees collected for newly constructed housing units constructed for extremely low,
very-low, low and moderate income households as defined in California Health and Safety Code
Sections 50105, 50106, 50079.5 and 50093, during the forty year period starting July 1, 2008 shall
12
be allocated to a separate circulation improvement sub account and shall be used to build or
13
finance circulation improvements to the Regional Arterial System as adopted by the Board of the
14 San Diego Association of Governments. For the year from July 1, 2008 to June 30, 2009, said
15"portion shall equal two thousand dollars per residential housing unit. Said portion shall be adjusted
annually as part of the City's Capital Improvement Program budget process, by two percent or the
annual percentage change in the Caltrans Construction Costs Index, (12-Month Index), whichever
is higher."
EFFECTIVE DATE: The Ordinance NS-885 was adopted at a noticed public hearing ati y
which time the City Council of the City of Carlsbad also considered the Traffic Impact Fee Update20
Study which study and associated information was available to the general public for a period of at
21
least fourteen (14) days prior to the public meeting. The fee established by that ordinance applies
22 to the issuance of any building permit, for any residential, commercial or industrial development.
23 Ordinance No. NS-890 temporarily reduces the fee established by Ordinance No. NS-885 for a
24 one-year period and shall become effective on June 30, 2008. The City Clerk shall certify to the
adoption of this Ordinance and cause it to be published at least once in a publication of general
circulation within fifteen days after its adoption.
1 INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on
2 the day of , 2008, and thereafter.
3 PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad, California, on the day of , 2008, by the
following vote, to wit:o
AYES:
6
NOES:
ABSENT:
8
9 APPROVED AS TO FORM AND LEGALITY:
10
11
RONALD R. BALL, City Attorney
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CLAUDE A. LEWIS, Mayor14
15 ATTEST:
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LORRAINE M. WOOD, City Clerk
18 (SEAL)
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05/06/2008 16:11 FAX NftllUNflL
5'6/2008
Mayor Bud Lewis and Members of the City Council
City of Carlsbad
1200 Carlsbad Village Dr.
Carlsbad, CA 92008
AGENDA ITEM #__
c: Mayor
City Council
City Manager
City Attorney
City Clerk
Subject: Continuance of Commercial/Industrial Traffic Impact Fees - Ordinance No. NS-885
D>?ar Mayor Lewis and Members of the City Council:
Ch April 22, your City Council modified an earlier decision to implement traffic fee increases of more than
200% on both residential and commercial/industrial development. Because of SANDAG requirements for
the City to implement new traffic fees on residential development, this very complex issue has been rushed
through Council hearings with little opportunity for input from the impacted development community.
Bocause of (he very limited time that the staff reports have been available and the complexity of those
studies, we have not had the opportunity to fully analyze the impacts of such a significant fee increase on
our plans for our second phase of Ventana Real, a project that has an approved PIP and future
development.
It is our understanding that the most recent action by the City Council would implement the fee increase on
residential development required for SANDAG Transnet funding. The revised ordinance would also
implement an equivalent percentage increase in traffic impact fees for commercial/industrial development
for a one year period at which time the fees would revert to the higher level originally recommended by staff.
While this approach may appear to be a good solution on the surface, we would urge the Council to delay
a decision on the level of the commercial/industrial fee to allow more time to fully analyze the
Impacts of this fee, to conduct further study of the projects and project costs that are funded by this
fee, and have proper nexus to legally impose these fees.
Since there is no timing requirement to adjust traffic impact fees for commercial/industrial development that
would impact project funding from SANDAG, the City Council could move forward only with the proposed
increase for residential development with the appropriate grandfather provisions requested by the Building
Inoustry Association. This would provide an opportunity for commercial and industrial property owners and
your staff to more fully study the proposed increase and make recommendations for an appropriate
adjustment that balances project funding needs with potential economic impacts to the city.
Thank you for your consideration of this request.
1525 Faraday AVL-., Suite 100 • Carlsbad, California 92008 • (760) 607-42R2 • I'ax (760) 607-4286 • www.newportnational.bi/
April 29, 2008
TO: CITY ATTORNEY
CITY CLERK
FROM: Assistant City Clerk
CALENDAR OF EVENTS REGARDING NOTICING OF PUBLIC HEARING FOR 2008
TRAFFIC IMPACT FEE PROGRAM - AB #19,392
Thank you for meeting with the City Clerk and me today to discuss this matter. As you
requested, we have compiled a chronology of the events regarding the noticing for this
matter. The notice of public hearing was published in the newspaper well in advance of the
required minimum notice, and was also put on, and remained on, the City's website for
fourteen days prior to the hearing. In addition, the matter appeared on the agendas for three
different City Council Meetings, and was also posted and placed on the City website prior to
each meeting. The posting was done at City Hall 72 hours in advance of each meeting as
required by the Brown Act.
The calendar of events for the noticing process is as follows:
March 21, 2008
March 25, 2008
April 4, 2008
April 11, 2008
April 18, 2008
Notice of public hearing submitted to NC Times
for publication on March 25, 2008
Notice of April 8 hearing published and placed
on City website
Agenda for April 8 Council Meeting posted and
placed on City website
Agenda for April 15 Council Meeting posted and
placed on City website
Agenda for April 22 Council Meeting posted and
placed on City website
Please note that we did not have any written "Requests for Notice" regarding this matter on
file in our office at the time the matter was noticed. For this reason, mailing of notices was
not required.
We also have compiled a list of persons that attended the City Council Meetings to speak on
this matter. There were a total of ten speakers at the three meetings. A copy of the list is
attached to this memo for information.
Also, as a result of discussions with Senior Civil Engineer Plantz, we learned that he had
provided information to parties interested in this matter. Mr. Plantz indicated that he had, on
March 20, 2008, sent a letter (copy attached) and a copy of the Study to the BIA to alert them
that it was anticipated that the matter would be scheduled for public hearing on April 8, 2008,
which included a copy of the Traffic Impact Fee Update Study.
In addition, Mr. Plantz indicated that he had spoken to Scott Molloy of the BIA prior to the
hearing and had provided additional information, including an electronic version of the study,
to him via email. Mr. Plantz also indicated that he had also spoken with representatives of
Brookfield Homes and Planning Systems prior to the April 8, 2008 hearing, and had provided
paper copies of the study to them.
As a result of these discussions, we believe that the noticing for the public hearing referenced
above was done in substantial compliance with the requirements of the Government Code.
EN KUNDTZ, CMC
Assistant City Clerk
C: Interim City Manager
Public Works Director
Sr. Civil Eng. Plantz
Attachment (1 - List of Speakers)
(2 - Letter to BIA from M. Plantz)
CITY COUNCIL MEETING SPEAKERS REGARDING
THE TRAFFIC IMPACT FEE PROGRAM UPDATE
APRIL 8. 2008 CITY COUNCIL MEETING - PUBLIC HEARING
• Scott Molloy, Public Policy Advocate for the Building Industry Association (BIA)
APRIL 15. 2008 CITY COUNCIL MEETING - ORDINANCE FOR ADOPTION
• No speakers. Item continued to meeting of April 22, 2008
APRIL 22. 2008 CITY COUNCIL MEETING - ORDINANCE FOR ADOPTION
Michael Babawal, Director of Government Affairs, Carlsbad Chamber of Commerce
Jeff Williams, LNR Partners
Scott Molloy, Public Policy Advocate for the Building Industry Association (BIA)
David DiRienzo, President of Urban West
Mike Howes of Howes, Weiler and Associates
Pat O'Day, President of O'Day Consultants
Bob Ladwig, President of Ladwig Design Group, Inc.
Brenda Tworoger, La Costa Town Center Project
Fred Arbuckle, President of Morrow Development
C'tv of Carlsbad
Public Works Engineering
March 20, 2008
Ann Ellis
BUILDING INDUSTRY ASSOCIATION
9201 Spectrum Center Boulevard, Suite 110
San Diego, CA 92123
TRAFFIC IMPACT FEE UPDATE
The purpose of this letter is to inform your organization that the City of Carlsbad is considering
updating the existing Traffic Impact Fee (TIP) program which was established in 1991
The recommended update will revise the project list, project costs, trip volume projections, and
ultimately the fee. The update also includes the amendments necessary to satisfy the
requirements of the Regional Traffic Congestion Improvement Program (RTCIP) section of the
TransNet Extension Ordinance.
In support of these revisions, we have prepared the attached Traffic Impact Fee Update Study.
The Study includes sections which generally describe the authority, justification, and purpose of
the TIP program. In addition, the Study summarizes the results of the analysis of the
roadway/circulation system which are then used to calculate project costs. These costs are then
used in conjunction with future trip generation projections to calculate the fees needed to
generate the funding for the projects. The recommended fees are summarized on page 1 1 of
the Study.
The Study also describes how a portion of the fees will be programmed for improvements on
the Regional Arterial System (RAS) in conformance with the RTCIP. In general terms, the
RTCIP requires member agencies to collect $2,000 per newly-constructed residential unit for
the purpose of constructing/improving RAS roadways. By incorporating the necessary
provisions into the TIP update, the City will be able to utilize an existing fee program to satisfy
the requirements of the RTCIP.
At this time, we anticipate that the item will be considered by the City Council at their April 8th
meeting. Once the actual date is set, the City Clerk's office will provide a public notification of
the associated public hearing and the agenda bill will be posted on the City's website.
The updated fee would become effective 60 days after the adoption of the associated
ordinance which amends Chapter 18 42 of the Carlsbad Municipal Code.
If you have any questions regarding this subject, please contact me at (760) 602-2766.
Sincerely,
^•-. -.-: .-•• .-,-rrr^-
MARSHALL PLANTZ
Senior Civil Engineer
Attachment: Traffic Impact Fee Update Study
c; City Engineer
Deputy City Engineer, Planning and Programs Division
Finance Director
1 635 Faraday Avenue * Carlsbad, CA 9200S-7314 • (760) 6O2-272Q - FAX (760) 302-3582
PROOF OF PUBLICATION
(2010 & 2011 C.C.P.)
This space is for the County Clerk's Filing Stamp
STATE OF CALIFORNIA
County of San Diego
I am a citizen of the United States and a resident of
the County aforesaid: I am over the age of eighteen
years and not a party to or interested in the above-
entitled matter. I am the principal clerk of the printer
of
North County Times
Formerly known as the Blade-Citizen and The Times-
Advocate and which newspapers have been
adjudicated newspapers of general circulation by the
Superior Court of the County of San Diego, State of
California, for the City of Oceanside and the City of
Escondido, Court Decree number 171349, for the
County of San Diego, that the notice of which the
annexed is a printed copy (set in type not smaller than
nonpariel), has been published in each regular and
entire issue of said newspaper and not in any
supplement thereof on the following dates, to-wit:
March 25th, 2008
Proof of Publication of
NOTICE Of PUBUC HEARIMQ
:ISt
III O. A18.42 <
», 1200 Carlsbad, at 6;00 p.m.onI Title
merit* to beconsider revising meChapter 18.42 oHheling trie
IB circulation Improve-Traffic Impact Fee; toimpact fee Imposed by1 Municipal Code; and tfl„. jgalnst the traffic impact18.42 of the CarlsbadT*J-^ _„_ B within the boundaries andto taxation Tjy Community Facilities District
^are ontapai-
the Cfty-Wkte TrafficIf youLiSt of Prajocft to be funded in court,Ited to raising only • - -someone else at thiwritten
Ited to raising only those issues nit the
Isbsd, City Clerk's Office, 1200 Carlsbade, Carlsbad. 92008, at or prior to the pub-
APPLICANT:
NCT2137348 PUB: 03/2512006
I certify (or declare) under penalty of perjury that the
foregoing is true and correct.
Dated at SAN MARCOS California
This 25th, day of March, 2008
Jane Allshouse
NORTH COUNTY TIMES
Legal Advertising
Allen Matkins Leek Gamble Mallory & Natsis LLP
TV It 4.1 * Attorneys at Law
jyi3.tKlIlS 50> West Broadway, 15" Floor | San Diego, CA 92101-3541
Telephone: 619.233.1155 | Facsimile: 619.233.1158
www.allenmatkins.com
Robin M. Munro
E-mail: nnunro@alleninatkiiis.com
Direct Dial: 619.235.1531 File Number: W8809-OOI/SD696682.05
Gerald C. Livingston
E-mail: jlivingston@allenmatkins.com
Direct Dial: 619.235.1510
Via Email/US Postal
May 6, 2008
Mayor Bud Lewis and Members of the City Council
City of Carlsbad
1200 Carlsbad Village Dr.
Carlsbad, CA 92108
Re: Proposed Traffic Impact Fee - Hearing Date May 6,2008 - Item 11
Dear Mayor Lewis and Members of the City Council:
We represent several owners of commercial and industrial property in the City of Carlsbad
("City"). The City has managed growth in the community with a management plan that balances
new development with needed infrastructure. A key part of this growth management plan has been
the provision of new roads and traffic facilities funded by traffic impact fees. Maintaining a balance
between fee levels, the impacts of those fees on the economy and ensuring that new development
pays its fair share toward the costs of public improvements, should be key considerations for the
City Council when evaluating fee adjustments.
It has recently come to our attention that the City adopted Ordinance No. NS-885 at its April
8, 2008 meeting to increase traffic impact fees on commercial and industrial development by 309%,
and to increase traffic impact fees on residential development by 307% ("Fee Ordinance"). We also
understand that when the Fee Ordinance was returned for a second reading on April 22, 2008, the
Council directed staff to return with a revised ordinance that would delay the fee increase for
commercial and industrial development for a one-year period ("Revised Fee Ordinance"). We were
informed last Friday, May 2, 2008, that the Revised Fee Ordinance will be heard by the City
Council today, May 6, 2008.
Because of Transnet requirements that the City implement new traffic fees on residential
development by June 30, 2008 as a condition precedent to receive Transnet funding through
SANDAG, this very complex proposal has been rushed through City Council hearings with little
opportunity for input from the impacted development community. It is our understanding that the
City Council could implement the fee increase on residential development required to receive
Los Angeles | Orange County | San Diego | Century City | San Francisco | Del Mar Heights | Walnut Creek
Allen Matkins Leek Gamble Mallory & Natsis LLP
Attorneys at Law
Mayor Bud Lewis and Members of the City Council
May 6, 2008
Page 2
Transnet funding from SANDAG, without adjusting the commercial/industrial fees. Therefore, we
urge the Council to delay any decision on the commercial/industrial fees to allow more time to fully
analyze the impacts of this fee on revenue producing development (sales taxes) in the City.
Additional time is also necessary to study the projects funded by this fee and analyze the
relationship and proportionality to the development projects which will have to pay the fee. We
note that review of the Traffic Impact Fee Update prepared by the City appears to indicate that the
fee increase is intended to fund post-deficiency between previously required infrastructure and past
fees, and that the fee assumes a level of infrastructure beyond that required for future development.
Moreover, although we support formation of an ad-hoc committee to review the proposed
commercial/industrial fee increases, that committee should include representatives of the
commercial and industrial property owners to ensure their interests are represented.
In addition, we believe that the original public notice for the April 8, 2008 hearing was
defective. Pursuant to the Mitigation Fee Act1, Section 66018 provides:
Prior to adopting an ordinance, resolution, or other legislative enactment
adopting a new fee or approving an increase in an existing fee to which
this section applies, a local agency shall hold a public hearing, at which
oral or written presentations can be made, as part of a regularly scheduled
meeting. Notice of the time and place of the meeting, including a general
explanation of the matter to be considered, shall be in accordance with
Section 6062a.
Cal. Gov. Section 6062a provides:
Publication of notice pursuant to this section shall be for 10 days in a
newspaper regularly published once a week or oftener. Two publications
with at least five days intervening between the dates of the first and last
publication not counting such publication dates, are sufficient. The period
of notice commences upon the first day of publication and terminates at
the end of the tenth day, including therein the first day. (Emphasis added).
According to the City Clerk, notice of the April 8, 2008 hearing was published only once on
March 25, 2008 in the North County Times. However, Section 6062a, cited above, clearly requires
that the notice be published at least twice within the ten day period in order to be sufficient. When
we brought this to the attention of the City Attorney, Mr. Ron Ball, he acknowledged that the notice
was only published once.
Cal. Gov Code sections 66000-66025.
Allen Matkins Leek Gamble Mallory & Natsis LLP
Attorneys at Law
Mayor Bud Lewis and Members of the City Council
May 6, 2008
Page 3
Mr. Ball also suggested that we consider Cal. Gov. Code Section 65945.7 with respect to the
defective notice, which states:
No action, inaction, or recommendation regarding any ordinance, rule or
regulation subject to this Section 65945, 65945.3, or 65945.5 by any
legislative body, administrative body, or the officials of any state or local
agency shall be held void or invalid or be set aside by any court on the
ground of any error, irregularity, informality, neglect or omission
(hereinafter called "error") as to any matter pertaining to notices, records,
determinations, publications or any matters of procedure whatever, unless
after an examination of the entire case, including evidence, the court shall
be of the opinion that the error complained of was prejudicial, and that by
reason of such error the party complaining or appealing sustained and
suffered substantial injury, and that a different result would have been
probable if such error had not occurred or existed. There shall be no
presumption that error is prejudicial or that injury was done if error is
shown.
While we appreciate the acknowledgment that the notice may be defective, we do not
believe Cal. Gov. Code Section 65945.7 applies here. The cited Sections 65945, 65945.3 and
65945.5, relate to an applicant's general right to request notice from a city, county, local agency or
state agency of a proposal to amend plans, zoning ordinances, and/or regulations. The City's public
notice obligation of a proposed fee increase is more specifically addressed in the Mitigation Fee
Act, specifically Sections 66018 which incorporates the notice provision in Section 6062a, both
cited above. The Mitigation Fee Act does not contain a provision similar to Cal. Gov. Code Section
65945.7 regarding defective notice.
However, even if Cal. Gov. Code Section 65945.7 did apply, our clients are most certainly
prejudiced by the City's failure to properly notice this item. Because of the lack of notice, we have
had very limited time to review the staff reports and the complex studies associated with the
proposed fee increase. For that reason, our clients have not had the opportunity to analyze the
impacts of such a significant fee increase on the viability of their development plans. As such, it is
extremely speculative for the City to conclude that it would actually collect the fees contemplated
by either the Fee Ordinance or Revised Fee Ordinance because both present significant obstacles to
actual development for economic reasons.
There is no timing requirement to adjust traffic impact fees for commercial/industrial
development that would impact the City's ability to qualify for Transnet funding from SANDAG.
For that reason, we would support a City Council action to move forward with the proposed
increase for residential development only, and include the appropriate pre-payment provisions for
residential development requested by the Building Industry Association. This would provide an
Allen Matkins Leek Gamble Mallory & Natsis LLP
Attorneys at Law
Mayor Bud Lewis and Members of the City Council
May 6, 2008
Page 4
opportunity for commercial and industrial property owners to work with City staff to more fully
study the proposed increase in commercial/industrial fees and make recommendations for an
appropriate adjustment that balances project funding needs, fairness and potential economic impacts
to the City. This additional time could potentially attenuate the prejudicial error to our clients as a
result of the defective public notice.
Therefore, in the interest of due process and fundamental fairness, we urge you to delay any
action which would increase traffic impact fees for commercial or industrial development until the
public, specifically the owners of commercial and industrial properties, have had a meaningful
opportunity to review the proposal and provide input.
Thank you for your consideration of this request.
RMM:sdw
cc: Lisa Hildabrand, Interim City Manager
Ron Ball, City Attorney
Gerald C. Livingston
Carlsbad Transportation
Impact fee
Building Industry Recommendations
Establish a Pre-Payment Option for Entitled Projects
Allow projects meeting the following criteria to pre-pay their traffic fees before
October 1, 2008, based on the old fees (fees in effect prior to the April 8,2008,
city council hearing). Provide council the discretion to extend the Oct. 1st
window if deemed appropriate.
CRITERIA:
> Single family projects with a Final Map recorded prior to April 8,2008
> Multif amily projects with a Precise Development Plan approved prior to April 8,2008
> Commercial and industrial projects with a Site Plan or a Planned Industrial Permit approved prior to
April 8,2008
> Tennant Improvement Plans submitted for plan check prior to April 8,2009
Projects meeting any of these criteria and pre-paving their fees before October 1,2008, would have until April
8,2009, to apply for a building permit ana not be subject to any additional traffic fees.
Any building permit applied for on or after April 8,2009, will be subject to the fees in effect at the time of
building permit application submittal with a credit for any fees previously paid.
Changes to projects which result in an increase in density or square footage will subject the project to the fees
in effective at building permit application with a credit for the total amount previously paid.
NO!
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Projects Which have TftnStnM^ 'TmTX>™f«"?lV^ fh^ wuiv» tinier for Hollnr crodit fnr »hn«P i
toward the project's calculated TIP for the life of the project, even in the case where those improvements are
fully completed today.
Alternative Pre-Payment Option
Allow projects meeting the following criteria to pre-pay the adjusted fees (fees
in effective on July 1, 2008) before October 1,2008, and exempt these projects
from any further traffic fee increases for the life of the project. Provide council
the discretion to extend the Oct. 1st window if deemed appropriate.
CRITERIA:
> Single family projects with a Final Map recorded prior to April 8,2008
> Multifamily projects with a Precise Development Flan approved prior to April 8,2008
> Commercial and industrial projects with a Site Flan or a Planned Industrial Permit approved prior to
April 8,2008
> Tennant Improvement Plans submitted for plan check prior to April 8,2009
Projects meeting any of these criteria and ore-paying adjusted fees (fees in effect on Tuly 1f2008) before
October 1,2008,would be exempt from additional traffic fees tor the lif e ofthe project
Changes to projects which result in an increase in density or square footage will subject the project to the fees
in effective at building permit application with a credit for the total amount previously paid.
Projects which have constructed improvements shall receive dollar for dollar credit fur those improvements—
toward the project's calculated TIP for the life of the project, even in the case where those improvements are
fully completed today.
Convene a subcommittee to revise the Traffic Fee Study by
October 1,2008
> Revise the traffic modeling assumptions based on the SANDAG Series 11 traffic model and the city's Growth
Management Flan build out, including units held in reserve.
> Revise the TIP Program Project List and Funding Approach:
— Remove Cannon Road Reach 4 improvements.
— Remove Intersections 5 and 6 which are being constructed by the Palomar/Forum project.
- Remove El Carnino Real/Cannon Road intersection improvements which are being funded by Robertson
Ranch,
— Remove the Avenida Enemas improvements as these improvements should be funded by the water
treatment facility.
— Remove the Sidewalk and Transportation Management Program cost items and utilize TransNet sales
tax funding for these improvements.
— Remove the Carlsbad Village Drive widening improvements as these improvements may not be
necessary under the SANDAG Series 11 traffic modeling.
— Consider revising projected construction costs if/when city becomes a charter city.
— Consider utilizing a portion of TransNet sales tax revenue toward road improvements that are growth
related.
— Consider an optional offset to impact fees for retail projects which generate sales tax revenue to the city.
- Codify provisions for TIP credits and reimbursement provisions for projects which construct road
improvements.
Revise the City Council Ordinance # NS-890 to remove
the following language in Section 18.42.050, paragraph
(a), lines 12 and 17:
Line 12, remove the text: "...for a one year period from
July I, 2008; to June 30, 2009..."
Line 17, remove the statement: "Thereafter the fees shall
automatically revert to those amounts set forth at the
beginning of this paragraph (a)."
This language in the proposed ordinance is not consistent with the city
council direction to revise the traffic fee study to remove certain road
projects which aluMiM no! h*» rnrhnVri (n g/ Oirmon Foarl F^arh 4),
CJ-v
NO >
Summary of Building Industry
Recommendations
Establish a pre-payment window for entitled projects
with the option to extend the window at the discretion of
the city council.
Convene a subcommittee to review and revise as
necessary the Traffic Fee Study project list and funding
sources.
Make necessary modifications to ordinance #NS-890
such that the ordinance is consistent with council action
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Industrial and Commercial
Development Approval Process Flowchart
18-24 months 6-12 months 8-18 months
Master Tentative
Map
Engineering
Plan Review A
Mass
Grading
3-12 months*3-8 months 2-4 months
Site Plan
Approval
Engineering
Plan Review A
Finish Pad
Grading
* Assumes no EIR
3-4 months for PIP
6-12 months for SDP
2-3 months 2-4 months
Shell Building
Construction
1-2 months 2-3 months
Tennant Imp.
Construction
-Grading Permit
-Building Permit
Residential
Development Approval Process Flowchart
18-24 months
Master Tentative
Map
6-12 months 8-18 months
Engineering
Plan Review A
Mass
Grading
6-12 months 4-8 months 4-8 months
Village Level
Tentative Map
Engineering
Plan Review A
Rough Pad
Grading
3-6 months
Site Plan
Approval
3-8 months 2-4 months
Engineering
Plan Review A
Finish Pad
Grading
2-3 months 4-6 months
Building
Construction
-Grading Permit
-Building Permit
Prepayment
Pros
• Money available sooner
Cons
• Time value of Money - (Construction Cost Inflation)
• Ownership of prepayment value - w/individual or w/land
• Multiple Development Agreements
• Complicated record keeping and administrative tracking
April 29, 2008
TO: CITY ATTORNEY
CITY CLERK
FROM: Assistant City Clerk
CALENDAR OF EVENTS REGARDING NOTICING OF PUBLIC HEARING FOR 2008
TRAFFIC IMPACT FEE PROGRAM- AB #19,392
Thank you for meeting with the City Clerk and me today to discuss this matter. As you
requested, we have compiled a chronology of the events regarding the noticing for this
matter. The notice of public hearing was published in the newspaper well in advance of the
required minimum notice, and was also put on, and remained on, the City's website for
fourteen days prior to the hearing. In addition, the matter appeared on the agendas for three
different City Council Meetings, and was also posted and placed on the City website prior to
each meeting. The posting was done at City Hall 72 hours in advance of each meeting as
required by the Brown Act.
The calendar of events for the noticing process is as follows:
March 21, 2008
March 25, 2008
April 4, 2008
April 11, 2008
April 18, 2008
Notice of public hearing submitted to NC Times
for publication on March 25, 2008
Notice of April 8 hearing published and placed
on City website
Agenda for April 8 Council Meeting posted and
placed on City website
Agenda for April 15 Council Meeting posted and
placed on City website
Agenda for April 22 Council Meeting posted and
placed on City website
Please note that we did not have any written "Requests for Notice" regarding this matter on
file in our office at the time the matter was noticed. For this reason, mailing of notices was
not required.
We also have compiled a list of persons that attended the City Council Meetings to speak on
this matter. There were a total of ten speakers at the three meetings. A copy of the list is
attached to this memo for information.
Also, as a result of discussions with Senior Civil Engineer Plantz, we learned that he had
provided information to parties interested in this matter. Mr. Plantz indicated that he had, on
March 20, 2008, sent a letter (copy attached) and a copy of the Study to the BIA to alert them
that it was anticipated that the matter would be scheduled for public hearing on April 8, 2008,
which included a copy of the Traffic Impact Fee Update Study.
In addition, Mr. Plantz indicated that he had spoken to Scott Molloy of the BIA prior to the
hearing and had provided additional information, including an electronic version of the study,
to him via email. Mr. Plantz also indicated that he had also spoken with representatives of
Brookfield Homes and Planning Systems prior to the April 8, 2008 hearing, and had provided
paper copies of the study to them.
As a result of these discussions, we believe that the noticing for the public hearing referenced
above was done in substantial compliance with the requirements of the Government Code.
:N KUNDTZ, CMC
Assistant City Clerk
C: Interim City Manager
Public Works Director
Sr. Civil Eng. Plantz
Attachment (1 - List of Speakers)
(2 - Letter to BIA from M. Plantz)
CITY COUNCIL MEETING SPEAKERS REGARDING
THE TRAFFIC IMPACT FEE PROGRAM UPDATE
APRIL 8. 2008 CITY COUNCIL MEETING - PUBLIC HEARING
• Scott Molloy, Public Policy Advocate for the Building Industry Association (BIA)
APRIL 15. 2008 CITY COUNCIL MEETING - ORDINANCE FOR ADOPTION
• No speakers. Item continued to meeting of April 22, 2008
APRIL 22. 2008 CITY COUNCIL MEETING - ORDINANCE FOR ADOPTION
Michael Babawal, Director of Government Affairs, Carlsbad Chamber of Commerce
Jeff Williams, LNR Partners
Scott Molloy, Public Policy Advocate for the Building Industry Association (BIA)
David DiRienzo, President of Urban West
Mike Howes of Howes, Weiter and Associates
Pat O'Day, President of O'Day Consultants
Bob Ladwig, President of Ladwig Design Group, Inc.
Brenda Tworoger, La Costa Town Center Project
Fred Arbuckle, President of Morrow Development
City of Carlsbad
Public Works Engineering
March 20, 2008
Ann Ellis
BUILDING INDUSTRY ASSOCIATION
9201 Spectrum Canter Boulevard/Suite 110
San Diego, CA 92123
TRAFFIC IMPACT FEE UPDATE
The purpose of this letter Is to inform your organization that the City of Carlsbad is considering
updating the existing Traffic Impact Fee (TIP) program which was established in 1991.
The recommended update will revise the project list, project costs, trip volume projections, and
ultimately the fee. The update also Includes the amendments necessary to satisfy the
requirements of the Regional Traffic Congestion Improvement Program (RTCIP) section of the
TransNet Extension Ordinance.
In support of these revisions, we have prepared the attached Traffic Impact Fee Update Study.
The Study includes sections which generally describe the authority, justification, and purpose of
the TIF program. In addition, the Study summarizes the results of the analysis of the
roadway/circulation system which are then used to calculate project costs. These costs are then
used in conjunction with future trip generation projections to calculate the fees needed to
generate the funding for the projects. The recommended fees are summarized on page 1 1 of
the Study.
The Study also describes how a portion of the fees will be programmed for Improvements on
the Regional Arterial System (RAS) in conformance with the RTCIP. In general terms, the
RTCIP requires member agencies to collect $2,000 per newly-constructed residential unit for
the purpose, of constructing/improving RAS roadways. By incorporating the necessary
provisions inje the TIF update, the City will be able to utilize an existing fee program to satisfy
the requirements of the RTCIP.
At this time, we anticipate that the Hem will be considered by the City Council at their April 8th
meeting. Once the actual date is set, the City Clerk's office will provide a public notification of
the associated public hearing and the agenda bill will be posted on the City's website.
The updated fee would become effective 60 days after the adoption of the associated
ordinance which amends Chapter 18 42 of the Carlsbad Municipal Code.
If you have any questions regarding this subject, please contact me at (760) 602-2766.
Sincerely,
yt ,..-•,'. • .' ,' • .,..,. i.--/"""^
MARSHALL PLANTZ
Senior Civil Engineer
Attachment: Traffic Impact Fee Update Study
c: City Engineer
Deputy City Engineer, Planning and Programs Division
Finance Director
1635 Faraday Avenue • Carlsbad, CA 92008-7314 - (760) 602-2720 - FAX (760) 302-3532
Traffic Impact FeeTraffic Impact Fee••Ordinance for IntroductionOrdinance for IntroductionFee Reduction Fee Reduction ••Residential adjusted to meet the RTCIP Residential adjusted to meet the RTCIP requirementsrequirements••Commercial and Industrial adjusted by the same Commercial and Industrial adjusted by the same percentage as residentialpercentage as residentialGrandfathering provisionGrandfathering provision••Exclude projects from the change in the Traffic Exclude projects from the change in the Traffic Impact Fee based on the following criteriaImpact Fee based on the following criteriaBuilding Permit application on file by April 8, Building Permit application on file by April 8, 20082008Building Permit issued by September 30, 2008Building Permit issued by September 30, 2008
Fee ReductionFee Reduction••Current Fee Current Fee Residential Residential ––$115/ADT$115/ADTCommercial/Industrial Commercial/Industrial --$46/ADT$46/ADT••Full Fee as adopted on 4/22/08 (207% increase)Full Fee as adopted on 4/22/08 (207% increase)Residential Residential --$353/ADT$353/ADTCommercial/Industrial Commercial/Industrial --$142/ADT$142/ADT••Reduced Fee per this Agenda Bill (109% increase)Reduced Fee per this Agenda Bill (109% increase)Residential Residential --$240/ADT*$240/ADT*Commercial/Industrial Commercial/Industrial --$96/ADT$96/ADT* Per Single Family Unit* Per Single Family Unit
““GrandfatheringGrandfathering””••Revise the Ordinance to exclude commercial Revise the Ordinance to exclude commercial and industrial projects from the effects of the and industrial projects from the effects of the TIF update. TIF update. Projects that had a Building Permit application on file Projects that had a Building Permit application on file prior to April 8, 2008.prior to April 8, 2008.andandProjects that obtain a Building Permit by September Projects that obtain a Building Permit by September 30, 2008.30, 2008.••Financial ImpactFinancial Impact$1,600,000 less revenue when compared to full fee$1,600,000 less revenue when compared to full fee$ 800,000 less revenue when compared to reduced $ 800,000 less revenue when compared to reduced feefee
Traffic Impact FeeTraffic Impact Fee$54.6$34.1$23.69/30/086/30/096/30/08ResidentialComm/IndAllAll$1.6AllFull ReducedCurrentBuildout
Calendar of eventsCalendar of events••Ordinance with full fee increase Ordinance with full fee increase Introduced on April 8, 2008Introduced on April 8, 2008Adoption on April 22, 2008Adoption on April 22, 2008Fee becomes effective June 30, 2008Fee becomes effective June 30, 2008••Ordinance with a fee reduction and a Ordinance with a fee reduction and a ““grandfatheringgrandfathering””provision.provision.Introduce Ordinance on May 6, 2008Introduce Ordinance on May 6, 2008Adopt new Ordinance on May 13, 2008Adopt new Ordinance on May 13, 2008Fee becomes effective June 30, 2008Fee becomes effective June 30, 2008
Conclusion of Presentation