REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Action on a Resolution Approving the Findings from the Traffic Impact Fee Nexus Study and Setting the Rates for the Traffic Impact Fee, and Action on the Introduction of an Ordinance Making Corresponding Revisions to Santa Clara City Code Section 17.15.330
Report
BACKGROUND
Impact fees are governed by State law (Assembly Bill 1600, 1989, Government Code Section 66000) and allow a City to charge one-time fees to new developments to finance capital facility and infrastructure costs needed to serve those developments. Impact fees are established based on a reasonable relationship (i.e. nexus) between the impacts caused by new development and the improvements to mitigate those impacts that will be funded by the fee. These fees cannot be used to pay for the cost of existing deficiencies and are distinct from taxes and special assessments.
In 1988, the City of Santa Clara established and adopted the Traffic Mitigation Program (TMP) to identify and finance the construction of traffic mitigation improvements resulting from existing and projected traffic demands. The TMP included two financing mechanisms. A Traffic Mitigation Assessment District (TMAD) was created to fund the 60 percent share of traffic improvement costs associated with existing development, while a Traffic Mitigation Impact Fee (TMIF) was established to fund the 40 percent share of traffic improvement costs associated with new development. Both the TMAD and TMIF were applied to the City's primary growth area at the time (i.e. area north of the existing Caltrain tracks). In 1997, the City Council approved an amendment to the TMP (also known as Phase B) which discontinued the collection of TMAD assessments as new development was expected to account for all traffic growth and associated needs for improvements. Phase B also added additional improvements located south of the existing Caltrain tracks to the TMP project list. In 2009, the City Coun...
Click here for full text