REPORT TO COUNCIL
SUBJECT
Title
Action on Adoption of Ordinance No. 1986 Making Corresponding Revisions to Santa Clara City Code Section 17.15.330 Related to Traffic Impact Fees
Report
BACKGROUND
Proposed Ordinance No. 1986 was passed for the purpose of publication on July 17, 2018. Pursuant to City Charter Sections 808 and 812, proposed Ordinance No. 1986 was published on July 25, 2018 and copies were posted in at least three public places.
DISCUSSION
Proposed Ordinance No. 1986 would modify the scope of the City’s “Traffic Impact Fee” (TIF) program. The proposed modifications are based upon the recommendations contained in the “Santa Clara Traffic Impact Fee Nexus Study,” dated July 5, 2018, prepared by Hexagon Transportation Consultants, Inc. Since 1988, the City has applied the TIF to office, industrial, hotel and motel projects in selected areas of the City to mitigate traffic impacts associated with new development. The proposed ordinance would expand the geographic application of the TIF to be Citywide; apply the TIF to new residential and retail projects; and create exemptions for retail establishments below 50,000 square feet and 100% affordable housing developments. The Ordinance would also adjust fees annually in order to keep up with construction costs and inflation.
ENVIRONMENTAL REVIEW
The action being considered is subject to a statutory exemption from the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code section 21080(b)(8)(D) as the purpose of the Fee is to continue collection and expand the application of an impact fee to fund capital projects necessary to maintain traffic circulation service within the City’s existing service areas. The approval of this Fee does not authorize any capital projects to be funded by this fee; such projects will undergo separate review under CEQA, if applicable, at such time as the City considers those capital projects for approval. Individual development projects will also be required as necessary to perform traffic analysis, CEQA, and mitigate transportation impacts.
FISCAL IMPACT
The nexus study identifies a list of projects that would cost approximately $60 million to complete. After deducting the impact fees that have already been expended on these projects and the current impact fee balance, it is estimated that impact fee revenues totaling approximately $37 million and approximately $7.7 million in outside funding will be required to fully fund the improvements listed in the TMP. Funding for these projects will be included in the Capital Improvement Program and are subject to annual review and approval in future budget cycles. If all development projected to occur in 2040 does not proceed as predicted or depending on the level of the TMIF adopted, additional funding for the projects would be required and may be provided from other sources such as direct developer funding and state/federal grants.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Adopt Ordinance No. 1986 Making Corresponding Revisions to Santa Clara City Code Section 17.15.330 Related to Traffic Impact Fees.
Staff
Reviewed by: Brian Doyle, City Attorney
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Ordinance No. 1986