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HomeMy WebLinkAbout84-16 - Establishing a Fair Share Traffic Contribution Ordinance - Chapter 15.38ORDINANCE NO. 84 -16 AN ORDINANCE OF THE CITY OF NEWPORT BEACH ESTABLISHING A FAIR SHARE TRAFFIC CONTRIBUTION ORDINANCE - CHAPTER 15.38 • Sections: 15.38.010 Intent. 15.38.020 Purpose. 15.38.030 Specific Factual Findings. 15.38.040 Terms & Definitions. 15.38.045 Applicability. 15.38.050 Establishment of Contributions. 15.38.060 Payment of Contributions. 15.38.070 Use of Funds. 15.38.080 In Lieu Contributions. 15.38.090 Exemptions. 15.38.100 Retroactivity. 15.38.110 Waiver for Affordable Housing. 15.38.120 Supplementary Provisions. • 15.38.130 Severability. 15.38.010 Intent. The City Council of the City of Newport Beach finds that future development, or redevelopment, of property within the City will result in traffic volumes that exceed the capacity of the existing City -wide circulation system. The City Council of the City of Newport Beach has determined that the failure to expand the capacity of the existing Circulation Element in accordance with the Master Plan of Streets and Highways will cause unacceptable levels of congestion on streets and intersections, traffic accidents, air pollution, noise, and restrictions on access for emergency vehicles. The City Council also finds and declares that, in the absence of this • Ordinance imposing a fair share traffic contribution, existing and future sources of revenue are inadequate to fund a substantial portion of the circulation system improvements necessary to avoid unacceptable levels of congestion and related adverse impacts. 15.38.020 Purpose. The City Council of the City of Newport Beach finds and determines that the adoption of this Fair Share Traffic Contribution Ordinance will raise revenues sufficient to enable the City to construct circulation system • improvements that increase roadway capacity within the City of Newport Beach such that traffic generated by development and redevelopment of land within the City will not result in unacceptable levels of congestion of the circulation system. The City Council also finds and declares that this Ordinance contains a fair and equitable method of determining the extent to which the development or redevelopment of land will generate traffic volumes and establishes a fair and equitable method for distribution of costs of circulation system improvements necessary to accommodate the traffic volumes generated by such development. 15.38.030 Specific Findings. The City Council, after thorough review of all relevant information, has made specific factual findings concurrently with the adoption of this specifies the permitted uses of land within the City of Newport Beach and places limits on the intensity and density of such use. The Land Use Element has been updated and amended, from time to time, to reflect changes in land use and intensities approved by the City Council subsequent to the adoption of the Element; B. The City Council has conducted a thorough and intensive study of the relationship between the land uses and densities permitted by the General Plan and the actual development of property. The relationship between permitted uses and densities and actual development has been studied over a period of several years and based upon this study, the City Council is able to analyze trends in growth and development and the extent to which total anticipated • development will be different than development authorized under the General Plan and relevant zoning ordinances. Based upon this study and analysis, the City Council is able to predict with some certainty, the magnitude and extend of future development; - 2 - ordinance. The specific findings made by the Council as of the time of the • adoption of this ordinance are as follows: A. On May 29, 1972, the City Council adopted a Land Use Element as part of the General Plan for the City of Newport Beach. The Land Use Element specifies the permitted uses of land within the City of Newport Beach and places limits on the intensity and density of such use. The Land Use Element has been updated and amended, from time to time, to reflect changes in land use and intensities approved by the City Council subsequent to the adoption of the Element; B. The City Council has conducted a thorough and intensive study of the relationship between the land uses and densities permitted by the General Plan and the actual development of property. The relationship between permitted uses and densities and actual development has been studied over a period of several years and based upon this study, the City Council is able to analyze trends in growth and development and the extent to which total anticipated • development will be different than development authorized under the General Plan and relevant zoning ordinances. Based upon this study and analysis, the City Council is able to predict with some certainty, the magnitude and extend of future development; - 2 - C. The City Council has also studied and evaluated the extent to which different land uses generate automobile trips (trip generation rates). The City Council, in evaluating trip generation rates, has taken into consideration material prepared by the National Institute of Traffic Engineers • and similar organizations. The traffic generation factors established in this ordinance reflect the most accurate characterization of the actual traffic generated by specific land uses. D. The City Council, based upon its study of trends in development and trip generation rates, has determined that the existing Roadway Capacity is inadequate to accommodate traffic volumes that will be generated by future development; E. On March 11, 1974, the City Council adopted, as part of the General Plan, a Circulation Element. The Circulation Element contains a Master Plan of Streets and Highways (MPSH) , and has been amended from time to time to reflect changes to the Circulation System necessary or appropriate to prevent the occurrence of unacceptable levels of traffic congestion; F. The City Council finds that implementation of the Master Plan of Streets and Highways, as presently designed, would result in a Circulation • System which has the capacity to accommodate the additional traffic volume that will be generated by anticipated future development; G. Implementation of the Master Plan of Streets and Highways will require the construction of major improvements to the existing City -wide circulation system. The City Council has, after review of all relevant information, determined which roadway improvements are necessary to implement the Master Plan of Streets and Highways, the cost of those improvements, and estimated funds available to make such improvements, as well as the extent to which funding is inadequate to make the necessary improvements; H. The City Council, in determining the extent to which funds are available to make roadway improvements, has evaluated present and future sources of State, Federal and County Funding, City revenues which are earmarked for roadway - related improvements and the extent to which committed projects are required to construct or fund roadway improvements that will • assist in the implementation of the Master Plan of Streets and Highways. The City Council has determined that the extent to which regional traffic will impact the Circulation System of the City of Newport Beach is generally offset by existing and anticipated sources of funding from Governmental entities or private developers; - 3 - I. While the traffic volume generated by single development may not be, in and of itself, sufficient to overload the existing circulation system, the cumulative impact of all new development will result in unacceptable levels of traffic congestion, unless the Master Plan of Streets and Highways is • implemented. For this reason, the only fair and equitable method of securing the revenues necessary to construct required Circulation System improvements is a contribution based solely on the extent to which new development generates additional traffic volumes. The formula for establishing each Fair Share Traffic Contribution is as fair and equitable as possible. The City Council also finds that, by requiring the contribution in conjunction with the issuance of Building Permits, the funds generated by this Ordinance will enable the City to construct major improvements to the Circulation System concurrently with the traffic volumes created by development; J. The roadway improvements that will be constructed with funds generated by this Ordinance will significantly benefit the contributor in that the adverse impacts, such as noise, air pollution, delay, accidents and inconveniences, will be alleviated or eliminated and the Council further finds that the benefit derived from roadway improvements is generally equivalent to • the contributions received. K. The contribution called for by this ordinance will fund circulation system improvements that will increase the capacity of the streets and highways within the City of Newport Beach and the purpose and intent of this ordinance is complimentary to those provisions of the existing Traffic Phasing Ordinance which, for the most part, is predicated upon the need to improve intersections as opposed to roadway capacity; L. Bi- annual review, and possible revision, of the provisions of the related Fair Share Resolution establishing the procedures for the payment of Fair Share Contributions, will allow for the adjustment of the contributions to be made under this ordinance to ensure that those contributions are fair and equitable. 15.38.040 Terms & Definitions. For the purpose of this Chapter, the following terms shall have the • meanings indicated below: A. Trend Growth shall mean the level of future development and redevelopment of property in Newport Beach and shall be expressed in terms of square footage, number of rooms, or number of dwelling units. - 4 - B. Gross Floor Area shall mean the area included within the surrounding exterior walls of the building or portion thereof, exclusive of vent shafts and courts. The floor area of a building, or portion thereof, not provided with surrounding exterior walls shall be the usable area under the horizontal • projection of the roof or floor above. C. Net Floor Area shall mean the area included within the surrounding walls of a building, exclusive of vent shafts, elevator shafts, stairways, exterior corridors or balconies, rooms containing only mechanical and electrical equipment used for service of the building, utility shafts and parking. D. Land Use Category shall mean any of the following specific land uses: Residential: Single Family Detached Single Family Attached Duplex Triplex Fourplex Fiveplex or more Hotels /Motels Commercial: • Regional Commercial (Developments with over 100,000 sq.ft. of Floor Area) General Retail Boat Yards Office: General Office Medical Office Restaurants: Conventional Take -Out Industrial Recreational: Yacht Clubs Athletic Clubs E. Trip Generation Rate shall mean the number of average, daily trips generated by land use category per unit of development as stated herein. The trip generation rate for each land use category shall be as follows: • Residential: Single Family Detached 13.0 /d.u. Single Family Attached 8.5 /d.u. Duplex 8.5 /d.u. Triplex 8.5 /d.u. Fourplex 8.5 /d.u. Fiveplex or more 6.5 /d.u. - 5 - Hotels /Motels 10 /room Commercial (Net Floor Area): Restaurants (Gross Floor Area): Conventional 75/1000 sq.ft. Take -Out 40/1000 sq.ft. Industrial 6/1000 sq.ft. Recreational: Yacht Clubs 50 /1000 sq.ft. Athletic Clubs 40/1000 sq.ft. F. Project shall include any discretionary or ministerial action by the City resulting in the issuance of grading, building, plumbing, mechanical, or electrical permits, or any other form of entitlement issued by the City to construct on or change the use of a building or property. Regional Commercial 45/1000 sq.ft. General Retail 40/1000 sq.ft. • Boat Yards 40/1000 sq.ft. • Office (Net Floor Area): paving, curb and gutter, General Office 13/1000 sq.ft. Medical Office 40/1000 sq.ft. Restaurants (Gross Floor Area): Conventional 75/1000 sq.ft. Take -Out 40/1000 sq.ft. Industrial 6/1000 sq.ft. Recreational: Yacht Clubs 50 /1000 sq.ft. Athletic Clubs 40/1000 sq.ft. F. Project shall include any discretionary or ministerial action by the City resulting in the issuance of grading, building, plumbing, mechanical, or electrical permits, or any other form of entitlement issued by the City to construct on or change the use of a building or property. ways and improvements necessary to mitigate significant environmental impacts. 15.38.045 Applicability. The provisions of this ordinance shall apply to all new development, and to any redevelopment of any existing building or parcel, unless otherwise provided herein. 15.38.050 Establishment of Fair Share Traffic Contribution. A. The Fair Share Traffic Contribution is based upon the unfunded portion of the construction cost of the total Circulation System Improvements necessary to implement the Master Plan of Streets and Highways excluding University Drive (Net Roadway Costs), and the total number of vehicle trips anticipated as a result of trend growth. • B. The Fair Share Traffic Contribution shall be calculated, in accordance with the following procedure and as established by the Fair Share Resolution adopted by City Council in conjunction with this Ordinance: 1. The City Council shall determine by resolution net roadway cost as follows: G. Roadway Improvements shall include those improvements necessary to complete the roadway to master plan configuration and shall include and not be • limited to: sidewalks, medians with landscaping, paving, curb and gutter, drainage facilities, traffic signals, street lighting, noise walls, right of ways and improvements necessary to mitigate significant environmental impacts. 15.38.045 Applicability. The provisions of this ordinance shall apply to all new development, and to any redevelopment of any existing building or parcel, unless otherwise provided herein. 15.38.050 Establishment of Fair Share Traffic Contribution. A. The Fair Share Traffic Contribution is based upon the unfunded portion of the construction cost of the total Circulation System Improvements necessary to implement the Master Plan of Streets and Highways excluding University Drive (Net Roadway Costs), and the total number of vehicle trips anticipated as a result of trend growth. • B. The Fair Share Traffic Contribution shall be calculated, in accordance with the following procedure and as established by the Fair Share Resolution adopted by City Council in conjunction with this Ordinance: 1. The City Council shall determine by resolution net roadway cost as follows: complete each improvement; c) The City Council shall determine, with respect to roadway improvements, an estimate of the current and anticipated funding available to satisfy the costs of construction. In determining the amount of funding available for roadway improvements the Council shall include funding from other governmental entities, City revenues earmarked for roadway construction purposes, and the extent to which committed projects are required to construct, fund or dedicate land for, the specific roadway improvement; d) The City Council shall determine, for roadway • improvements, the difference, if any, between the estimated costs of construction and the estimated funding available to complete the improvement; e) The extent to which the cost of construction for all roadway improvements exceed the funds available, or anticipated for constructing the improvement, shall be the "net roadway cost;" 2. The City Council shall determine the total anticipated average daily trips resulting from trend growth as defined in Section 15.38.040 A., in the following manner: a) The total remaining development in each land use category as established in Section 15.38.040 D., shall be multiplied by the Trip Generation Rate established in Section 15.38.040 E. • b) All of the additional daily trips of each land use category shall be added to determine the total average daily trips that the City's circulation system must accommodate in the future. - 7 - a) The City Council shall determine which roadway and related improvements are necessary to implement the Master Plan of Streets and Highways excluding University Drive; isb) The City Council shall determine, for each specific improvement, an estimate of the total costs necessary to complete each improvement; c) The City Council shall determine, with respect to roadway improvements, an estimate of the current and anticipated funding available to satisfy the costs of construction. In determining the amount of funding available for roadway improvements the Council shall include funding from other governmental entities, City revenues earmarked for roadway construction purposes, and the extent to which committed projects are required to construct, fund or dedicate land for, the specific roadway improvement; d) The City Council shall determine, for roadway • improvements, the difference, if any, between the estimated costs of construction and the estimated funding available to complete the improvement; e) The extent to which the cost of construction for all roadway improvements exceed the funds available, or anticipated for constructing the improvement, shall be the "net roadway cost;" 2. The City Council shall determine the total anticipated average daily trips resulting from trend growth as defined in Section 15.38.040 A., in the following manner: a) The total remaining development in each land use category as established in Section 15.38.040 D., shall be multiplied by the Trip Generation Rate established in Section 15.38.040 E. • b) All of the additional daily trips of each land use category shall be added to determine the total average daily trips that the City's circulation system must accommodate in the future. - 7 - C) The City Council shall determine the average cost per trip by dividing net roadway cost by the total traffic volume generated by trend growth. d) The Fair Share Traffic Contribution required of any • project shall be calculated in the following manner: i. Residential Projects: The average cost per trip shall be multiplied by the total number of trips generated by the project, using the methodology and Traffic Generation Rates established in this section; ii. Hotel /Motels: The average cost per trip shall be multiplied by the number of trips generated by each room, the product of which shall then be multiplied by the total number of rooms; iii. For office, retail, commercial and industrial uses, the following procedures apply: a. The traffic generation factors shall be used to determine the number of trips per square foot; • b. The number of trips per square foot is multiplied by the cost per trip as determined by the methodology set forth in this section, to determine the cost per square foot; C. The cost per square foot is multiplied by the total square footage of a proposed project to determine the Fair Share Contribution; C. Bi- annually, or as deemed necessary, the City Council in conjunction with the City's budget sessions, shall review the Trend Growth Assumptions, Trip Generation Rates and Roadway Cost Estimates, and if necessary, shall amend the Fair Share Resolution establishing the Fair Share Traffic Contribution to ensure that it is a fair and equitable method for the distribution of costs of circulation system improvements necessary to accommodate traffic volumes generated by trend growth. • D. In the event no substantive changes to any of the provisions of this ordinance or the Fair Share Resolution occur during the time between the mandatory bi- annual City Council reviews as set forth herein, the dollar amounts set forth in The Fair Share Resolution and Exhibits "A" and "B" thereof, shall be increased automatically, based upon any interim increase in the Consumer Price Index (the Los Angeles - Long Beach and Anaheim Index). This automatic increase shall be calculated and become effective on July 1 of any year that the City Council does not otherwise review the contents or • provisions of this ordinance and the Fair Share Resolution. 15.38.060 Payment of Contribution. No building or grading permit shall be issued, and no construction shall be commenced, for any project not exempt from this Chapter unless all contributions required pursuant to this Chapter have been deposited with the City Finance Director. 15.38.070 Use of Funds. The contributions paid pursuant to the provisions of this Chapter shall be set aside by the City in a fund to be used solely for the purpose of constructing roadway and related improvements or acquiring right of way necessary to complete implementation of the Master Plan of Streets and Highways. Yearly, during the budget review, the City Council shall review fund balances and required roadway improvements and make a determination for use of the funds for the coming fiscal year. • 15.38.080 In Lieu Contributions. The provisions of this Chapter may be satisfied, in whole or in part, by the dedication of right of way, or the construction of roadway or related improvements necessary to the implementation of the Master Plan of Streets and Highways, as set forth herein: A. In lieu credit may be given for Master Plan of Streets and Highways improvements which are not assumed to be required of adjacent developments pursuant to the Subdivision Map Act, as indicated in Exhibit "A ". B. In lieu credit may be given where application of the Traffic Phasing Ordinance to a specific development results in improvements that are shown on the Master Plan of Streets and Highways, except: 1. Improvements required pursuant to the Traffic Phasing Ordinance that may be or are temporary in nature, or those improvements that may have to be relocated, altered or removed in the future shall not be eligible for • consideration as an in lieu contribution. 2. Improvements required pursuant to the Traffic Phasing Ordinance that exceed the requirements of the Master Plan of Streets and Highways, that are necessary to accommodate a specific development shall not be eligible for consideration as an in lieu contribution. • C. Acceptance of all proposed in lieu contributions shall be subject to the approval of the Planning Commission or the City Council on appeal or review. 15.38.090 Exemptions. The following projects shall be exempt, in whole or in part, from the contributions otherwise required by this Chapter: A. In the event a site contains one or more structures which are proposed to be demolished in conjunction with a new development, the contributions otherwise required by this Chapter shall be reduced in an amount equal to the contributions that would have been required had the existing structure been subject to the provisions of this chapter. B. In the event that no new construction is proposed, no contribution shall be required for the conversion from one land use category to another unless the land use category to which the property is to be converted • generates more average daily trips than the existing use. In such case, the contributions to be charged shall be based solely on the difference between the contributions required for each land use as set forth herein. C. The provisions of this section shall not apply to structures or uses which were demolished or terminated more than one year prior to the approval of a new development on the property. D. Where a land use proposed for a site is less intensive than the existing land use, no refund will be available to the developer. 15.38.100 Retroactivity. A. In those cases where a developer has submitted a fair share contribution required as a condition of approval prior to the effective date of this ordinance, refunds are prohibited. B. in those cases where a condition on a development approved prior to the effective date of this ordinance states that a fair share contribution isshall be determined prior to the issuance of Building Permits, the contribution shall be based upon the amounts set forth in the Fair Share Resolution at the time Building Permits are issued. - 10 - C. In those cases where a specific dollar amount was indicated in a previously imposed condition of approval, the contribution will be based upon the amount set forth in the Fair Share Resolution at the time Building Permits are issued. • D. Those cases where a fair share contribution had been negotiated as a condition of approval between the City and a developer, then the negotiated amount will be broken down to subtract any portion attributable to Traffic Phasing Ordinance improvements, and improvements or dedications resulting from application of the Subdivision Map Act. Those improvements or dedications will be in addition to the fair share contribution, which will be based upon the amounts set forth in the Fair Share Resolution at the time Building Permits are issued. 15.38.110 Waiver for Affordable Housing. Contributions otherwise required pursuant to this Chapter, shall be waived for all affordable residential housing as that term is defined in the Housing Element, and for any "Granny" units or "Second Units" as defined in Section 65852.1 of the Government Code. 15.38.120 Supplementary Provisions. • It is the intent of the City Council that the contributions required by this Chapter shall be supplementary to the contributions and conditions imposed upon projects pursuant to the provisions of this Code, the Subdivision Map Act, California Environmental Quality Act, and other State and local laws, ordinances or charter provisions which may authorize the imposition of conditions or contributions on development. • 15.38.130 Severability. If any section or portion of this Chapter is declared invalid the remaining sections or portions are to be considered valid and unaffected by the determination of invalidity. - 11 - This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 29th day of May , 1984, and was adopted on the 11th day of June , 1984 by the following vote, to wit: • ATTEST: City Clerk CG:nma FSO • • AYES, COUNCILMEMBERS Agee, Cox, Hart, Heather, Plummer, Strauss NOES, COUNCILMEMBERS ABSENT a or - 12 - Maurer