Ordinance 1992-19ORDINANCE NO. 92-19
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY MAKING CERTAIN FINDINGS AND ADDING
ARTICLE VI TO CHAPTER 21 OF THE GILROY CITY
CODE, ESTABLISHING A CITYWIDE TRAFFIC IMPACT
FEE FOR ALL DEVELOPMENT PROJECTS WITHIN THE
CITY OF GILROY
WHEREAS, on August 3, 1992, the City Council of the City
of Gilroy passed Resolution No. 92-68, adopting a new Circulation
and Air Quality element for Gilroy's General Plan ("Circulation
Element"); and
WHEREAS, the Circulation Element establishes the guiding
policies of the City with respect to transportation of people and
goods within its planning area and identifies actions, including
functional street and highway improvements, which are necessary to
achieve the goals of those guiding policies; and
WHEREAS, alternate funding sources are inadequate to fund
the improvements called for by the Circulation Element, the
Circulation Element calls for the establishment of a citywide
traffic impact fee on all development projects, and California
Government Code Section 66000 and following substantiate the City's
authority to establish such a fee and define procedures for doing
so; and
WHEREAS, the City's present method for obtaining needed
roadway improvements by requiring developers to install all streets
adjacent to the project parcel will not finance all of the improve-
ments called for by the Circulation Element; and
WHEREAS, the city Council has duly received, reviewed,
and considered documents entitled "Citywide Traffic Impact Fee
Study" (December 1991) ("Study") and "Citywide Transportation Study
Technical Report" (January 1992) ("Report"), prepared by TJKM
Transportation Consultants; and
WHEREAS, the City Council held a duly noticed public
hearing on this ordinance on October 5, 1992, at which time the
· ORDINANCE NO. 92 - 19 -1-
City Council also considered Resolution No. 92-78, which makes
certain findings and sets initial rates for a citywide traffic
impact fee, and this ordinance, Resolution No. 92-78 , and asso-
ciated studies and reports were available to the public for at
least 10 calendar days prior to the hearing; and
WHEREAS, the city Council has considered the effect of
a citywide traffic impact fee with respect to the housing needs of
the region; and
WHEREAS, the City Council hereby finds as follows:
1. The purpose of the citywide traffic impact fee
is to finance street and highway improvements which are necessary
to achieve the guiding policies set by the General Plan regarding
the transportation of people and goods within the General Plan
planning area ("Improvements"), by requiring development projects
within the City of Gilroy to contribute to a fund that will finance
the Improvements.
2. The Improvements are those identified in
Exhibit A to Resolution No. 92- 78 as said Exhibit and Resolution
may be amended from time to time.
3. The citywide traffic impact fees collected
shall be used solely to finance the Improvements.
4. There are reasonable relationships between:
(a) the use of the fee and the types of
development projects on which the fee is imposed; and
(b) the need for the Improvements to be
financed by the fee and the type of development projects on which
the fee is imposed,
in that development projects will generate varying amounts of
additional traffic, creating adverse impacts on the street and
highway network in the Gilroy General Plan planning area, construc-
tion of the Improvements will reduce those impacts, and use of the
fee to finance the Improvements will allow them to be built in
timely fashion. The facts in support of this finding are contained
ORDINANCE NO. 92 - 19 -2-
in the record of the public hearing and in the Study and Report.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION I
A citywide traffic impact fee on all development projects
should be, and hereby is, established to finance the Improvements.
SECTION II
Article VI is hereby added to Chapter 21 of the Gilroy
city Code as follows:
ARTICLE VI. TI~tFFIC IMPACT FEE
Sec. 21.124. Purpose of article.
The purpose of the citywide traffic impact fee established in
this article is to finance street and highway improvements identi-
fied as necessary to achieve the guiding policies set by the Gilroy
General Plan regarding the transportation of people and goods
within the General Plan planning area, as the General Plan and
planning area may be amended from time to time, by requiring
development projects within the City of Gilroy to contribute to a
fund that will finance these improvements, thereby reducing the
adverse citywide traffic impacts the development projects cause.
Sec. 21.125. Development project--4efinlticn.
For the purposes of this article, "development project" shall
include:
(a) any new residential, commercial, industrial or other
non-residential building;
(b) any additions or alterations to existing residential
improvements that create one or more additional dwelling units; and
(c) any additions or alterations to existing non-
residential improvements that increase the gross square footage of
the improvement, in which case:
(1) the citywide traffic impact fee shall apply
only to the increase in gross square footage if the proposed use
is in the same fee rate category as the existing use; or
ORDINANCE NO. 92 - 19 -3-
(2) the citywide traffic impact fee shall apply to
the entire gross square footage of the improvement if the proposed
use is in a higher fee rate category than the existing use, except
that credit shall be applied in an amount based on the existing
gross square footage in the existing fee rate category.
"Development project" shall not include governmental entity
buildings utilized solely for governmental purposes by that entity
and which otherwise are legally exempt from such City-imposed fees.
Sec. 21.126. Fee required.
Approval of any development project by the city shall be
conditioned upon the payment of a citywide traffic impact fee in
an amount as fixed from time to time by resolution of the city
council. The fee will be calculated upon the number of dwelling
units for residential development projects, and upon gross square
footage for non-residential development projects, except as
otherwise provided in Section 21.124(c). The council resolution
shall establish categories of development projects and fix a fee
rate for each category. ~hen a development project does not
clearly fall under one of the established fee rate categories, the
planning director shall have discretion and final authority to
assign it to an established category.
Sec. 2X.X27. Time of pa2ment.
The time of payment of the traffic impact fee is as follows:
(a) for residential projects, at the earliest time
authorized hy California Government Code Section 6600?, as it may
be amended from time to time;
(b) for non-residential projects, at the earlier of the
time specified by an agreement with the City or prior to issuance
of a building permit.
Section 2X.X28. Developer construction; fee credit.
The traffic impact fee is the minimum contribution toward the
mitigation of traffic impacts to be required of a development
project. If because of special conditions caused by a development
ORDINANCE NO. 92 - 19 -4-
project, the development project is required to construct any
improvement or portion thereof which was to be financed by the
citywide traffic impact fee, the development project shall receive
a credit against its fee. The credit shall be equal to the
construction cost of the improvement identified in Exhibit A to
Resolution No. 92-78 as it may be amended from time to time, or,
if only a portion of the improvement is constructed, equal to the
prorated portion of said construction cost. In no event, however,
shall the credit exceed the traffic impact fee the development
project would otherwise pay.
Section 21.129. Separate fund; limited use of fees.
(a) Ail fees collected pursuant to the provisions of this
article, and any earnings thereon, shall be placed in a separate
citywide traffic impact fee fund in a manner to avoid any com-
mingling of the fees with other revenues and funds, except for
temporary investments or as may otherwise be permitted by law.
(b) All fees collected pursuant to the provisions of this
article, and any earnings thereon, shall be expended solely for the
construction of street and highway improvements identified as
necessary to achieve the guiding policies set by the General Plan
regarding the transportation of people and goods within the General
Plan planning area.
ORDINANCE NO. 92 - 19 -5-
SECTION III
This ordinance shall take effect and be in full force on
February 1, 1993, except that this ordinance shall not be effective
as to any project which has all other required City approvals and
for which a complete application for a building permit is duly
filed with the City prior to February 1, 1993 and is thereafter
diligently pursued.
PASSED AND ADOPTED this 16th day of November, 1992
the following vote:
AYES: COUNCILMEMBERS:
NOES:
ABSENT:
COUNCILMEMBERS:
COUNCILMEMBERS:
by
GILROY, HALE, NELSON, ROWLISON,
VALDEZ, GAGE
KLOECKER
None
ATT~: ~
APPROVED:
Donald Gage,
ORDINANCE NO. 92 - 19 -6-
COSTS C~ ;TREI~F IMPRQVEMENTS TO BE FUNOE~
8Y TRAFFIC IMPACT FEI;
NO RA]LRoAO GRADE SEPARATION
300. Wre~ Aw./'~,u~,~e Dc.
· 411 - U...9. I01 NS Off.4.~m~-jley ~.
417. ~y Ave~~ ~
~7- ~ T~a ~m~ Or.
~ * U~. 101 NB ~n~ H~
Teem
Uvaa Park
I~lw Ro~d Ea~tof 101
Wm
. Cah.~'~ey
Santa Teee~
~ ~
~.0M
~A 17
~6,2~ New Ihtemha~. ~TOTAL
~g2,5~ Santo T~ ·
~proved lntwcha~. ~UB~TAL
L~
$1,93~612.
$1.9.32.612
$4.a~3.120
$1,~,B~
31.011,7~
S 115,~2
T~tfle S~d.. ~UBTOTAL
Ebtdges. SUBTOTAL
Tenth at
~u~e
LO.OF.
Cotums~r we~t of Kern
Cm~a~$ey w~t of
H~ 9~I Of Wr~
~e~ Vi~ e; W~
S~ Tem~ at Day
cost
$13.940.080
$1.4~4.6T2
$I.07g.2~2
S1,71S,~8
$18,.S00,000
~,O00,OOO
CO..~T OF IMPROVEMENTS WITHOUT
· Pv~' COSTS ¢~0. 3,',~J1}
ORAN0 TOTAL INCLUDING R,/W
$0~. t3a. 153
$97,~84,1~3
$ UMAdAR 'v'3.X L.S
EXHIBIT A
VII
CALCULATIOH OF ~ IMPAG"r IIt~
ItA-~ED OH FIVE LAND U~E C.~TEGomE~,
(P "~3 U~' TRIPS PER
k.r~,t. ' 3,02 3,~11 10.05g"
SUSTO~'AL COMMERC~J.
13.21.~
SUBTOTAL INDUSTRIAL
0.~
26,153 13.477
971 1.168
rAL NUMBER OF TRIPS
TOTAL CHAJqG~.ABLE T~qlP~ (GRANO TOTAL LESS PUSUC USES)
GRAND TOTAL- ALL IMPROVEMENTS INCLUOING ~
CO.'ST PER CHARGEABLE TRIp
47.181
UNIT
$5.9O7
$1,063
F~.N,~LFF_E.XLS
EXHIBIT
I, SUSANNE E. STEINMETZ' City Clerk of the City of Gilroy, do
hereby certify that the attached Ordinance No. 92-19 is an original
ordinance, duly adopted by the Council of the City of Gilroy at a regular
meeting of said CounCil held on the I6th day of November , 19 92 ,
at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
Official Seal of the City of Gilroy this 17th day of November
19 92.
C~-~ty C~erk of the City of Gil~
(Seal)