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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)