Ordinance No. 926317
ORDINANCE NO. 926
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS
ESTABLISHING REGIONAL TRAFFIC IMPACT FEE REQUIREMENTS FOR NEW
DEVELOPMENT /REDEVELOPMENT WITHIN THE CITY OF CYPRESS
THE CITY COUNCIL OF THE CITY OF CYPRESS DOES HEREBY ORDAIN AS
FOLLOWS:
Section 1. Findings and Intent.
The City Council finds and determines as follows:
A. The City is committed to the provision of regional circulation improvements at
the levels necessary to mitigate regional service deficiencies resulting from new
development within the City.
B. A Regional Traffic Impact Fee is one of the preferred methods of ensuring that
new development bears a proportionate share of the cost of regional traffic
improvements necessary to accommodate such development. This must be done
in order to protect the public health, safety, and welfare.
C. The City Council of the City of Cypress has the authority to adopt this Ordinance
pursuant to Government Code Section 66000 et semc .
D. The City Council, after careful consideration of the matter, hereby finds and
declares that a Regional Traffic Impact Fee imposed upon residential and
nonresidential development in order to finance Regional Traffic Improvements,
the demand for which is created by such developments, is in the best interest of
the general welfare of the City and its residents, is equitable, does not impose an
unfair burden on such development by forcing developers and builders to pay
more than their fair and proportionate share of the cost, and deems it advisable
to adopt this Ordinance as hereinafter set forth.
Section 2. Chapter 5 of the Code of the City of Cypress is hereby amended by adding
a new Article IX within the Chapter and to read as follows:
"Article IX
Regional Traffic Impact Fees
Section 5 -47. Short Title.
This Article of the Code of the City of Cypress may be referred to as the "Regional
Traffic Impact Fee Ordinance" of the City of Cypress.
Section 5 -33. Purpose.
This Article is intended to impose a Regional Impact Fee at the time of building permit
issuance, in an amount based upon the square footage, or most appropriate impact measurement
of nonresidential and residential development in order to implement the goals and policies of the
Growth Management Element and Circulation Element of the City's General Plan, and to
mitigate the regional traffic impacts caused by new development within the City. Impact Fees
shall not exceed the cost of providing traffic improvements for which the need is substantially
attributable to those developments for which the fees are to be paid.
Section 5 -48. Definitions.
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As used in this Article, the following words and terms shall have the following meanings,
unless another meaning is plainly intended:
A. PM Peak Hour Trip Ends shall mean the trip generation potential for each
development to generate new traffic on the G.P./C.E. road system during the PM
peak hour. The peak hour is the one -hour period of highest traffic volume during
the PM peak period.
B. Building Permit shall mean the permit required for new construction and additions
pursuant to Chapter 5 of the Code of the City of Cypress. The term Building
Permit, as used herein, shall not be deemed to include permits required for
grading, remodeling, rehabilitation, or other improvements to an existing
structure or rebuilding a damaged or destroyed structure, provided there is no
increase in gross floor area or number of dwelling units resulting therefrom or
other change which is likely to increase the trip generation potential.
C. Traffic Improvements shall mean transportation planning, preliminary
engineering, engineering design studies, land surveys, right -of -way acquisition,
engineering, permitting, and construction of all necessary features for any street
improvement project including, but not limited to:
(a) construction of new through lanes;
(b) construction of new turn lanes;
(c) construction of new bridges;
(d) construction of new drainage facilities in conjunction with street
improvements;
(e) purchase and installation of traffic signalization (including new and
upgraded signalization);
(f) construction of curbs, medians, and shoulders; and
(g) relocating utilities to accommodate street improvements.
D. Certificate of Occupancy shall mean an entitlement to occupy and use a building
granted pursuant to the Code of the City of Cypress.
E. City shall mean the City of Cypress, a municipal charter corporation of the State
of the State of California.
F. Council shall mean the duly constituted governing body of the City of Cypress,
State of California.
G. Development shall mean any man -made change to improved or unimproved real
property, or the making of any material change in the use or appearance of any
structure or land.
H. Expansion of the capacity of a street shall mean expansion to all street and
intersection capacity enhancements and includes but is not limited to extensions,
widening, intersection improvements, upgrading signalization, and expansion of
bridges.
Regional Impact Fee shall mean any charge, fee, or assessment levied as a
condition of issuance of a building permit or development approval when any
portion of the revenues collected is intended to fund any portion of the costs of
regional traffic improvements.
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J. Residential Development shall mean any development approved by the City of
Cypress for residential use.
K. Site shall mean the land on which development takes place.
L. Site - related improvements shall mean traffic improvements and right -of -way
dedications for direct access improvements to and /or within the development in
question. Direct access improvements include but are not limited to the
following:
(a) access roads leading to the development;
(b) driveways and roads within the development;
(c) acceleration and deceleration lanes, and right and left turn lanes leading
to those roads and driveways; and
(d) traffic control measures for those roads and driveways.
M. Zoning Ordinance shall mean the officially adopted Zoning Map and text
regulating all development and land use in the City of Cypress.
Section 5 -49. Applicability of Impact Fee.
This Article shall be uniformly applicable to development that occurs within the City.
Section 5 -50. Imposition of Impact Fee.
A. Upon the effective date of this Ordinance, no Building Permit or extension of a
Building Permit issued prior to that date shall be issued for a development which
will generate additional traffic unless the Regional Impact Fee is imposed,
calculated, and collected pursuant to this Article.
B. Regional Impact Fees shall not exceed the cost of providing traffic improvements
for which the need is reasonably attributable to those developments that pay the
fees.
C. Regional Impact Fees that are assessed against new development shall be assessed
in such a manner that any new development having the same impacts on traffic
improvements shall be assessed the same Regional Impact Fee.
Section 5 -51. Payment of Fees.
The payment of fees required by this Article shall be made according to the following
procedures:
A. Payment Procedure for Commercial Development Projects.
Fees required by this Article from commercial developers may be paid in either
of the following ways at the sole discretion of the developer of the commercial
development project.
(1) The total of all fees required by this Article must be paid at the time the
City issues a building permit for the commercial development project; or
(2) At least twenty -five percent (25 %) of the total of all fees required by this
Article may be paid at the time that the City issues a building permit for
the commercial development project. The balance of the fees, plus
interest on that balance as provided in Subsection (D) of this Section, shall
be paid in three equal annual installments.
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Should an Applicant elect to pay the fees as provided in this subsection
(2), the full amount of all fees required by this Article shall be secured by
execution of an irrevocable letter of credit, or other security instrument
acceptable to the City, prior to the issuance of a building permit for the
Commercial Development Project.
B. Payment Procedure for Phased Commercial Development Projects.
If a commercial development project will be constructed in phases and separate
building permits will be issued for each phase, fees imposed pursuant to this
Article shall be calculated on the basis of the square footage of the entire project.
However, payment of the fees may be made separately for each phase of the
project so that the amount paid upon issuance of a building permit shall be the
percentage of the total fee equal to the percentage of the project's square footage
permitted to be constructed by the building permit.
C. Payment Procedure for Residential Development Projects.
Fees required by this Article from a residential development project shall be paid
before final inspection of the dwelling unit on which fees are imposed. Provided,
however, that if a residential development contains more than one dwelling unit,
then the fees imposed by this Article on the entire development shall be paid
before final inspection of the first dwelling unit in that development. For the
purposes of this Section, "final inspection" is defined as that term is defined in
Government Code Section 66007, as amended.
If the fees imposed by this Article on a dwelling unit or units are not paid before
a building permit is issued for that dwelling unit(s), the developer shall enter into
a contract with the City to pay those fees prior to final inspection of the dwelling
unit(s). The contract shall be recorded in the office of the Orange County
Recorder and shall constitute a lien for the payment of fees required by this
Article. The lien shall be enforceable against successors in interest of the initial
holder of the building permit.
The contract shall also require the building permit holder to provide appropriate
notification of the opening of any escrow for the sale of the property for which
the building permit is issued and to provide in the escrow instructions that the
fees required by this Article be paid from the sale proceeds in escrow prior to
disbursing proceeds to the seller, unless paid prior to the close of escrow.
D. Interest. Payment of fees pursuant to Subsection (A) (2) of this Section shall
include interest at a rate equal to the percentage increase in the fees as a result
of the most recent inflation adjustment of the fees made by the City Finance
Director.
Section 5 -52. Calculation of Impact Fee.
The Planning Director shall be responsible for calculating the fees established under
Section 5 -53 of this Article and approved by the City Council. This calculation shall be made
at the time of application for the Building Permit for the residential or the commercial
development project.
B. If the development for which a Building Permit is sought contains a mix of uses,
the City must separately calculate the Impact Fee due for each type of
development, or as otherwise specified by resolution of the City Council to
establish such fees.
C. Prior to making an application for Building Permit, an applicant may request a
nonbinding Impact Fee estimate from the City, which shall base such estimate on
the development potential of the particular in gross square footage or number of
dwelling units given the maximum intensity permitted by existing zoning and the
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applicable Impact Fee coefficient.
Section 5 -53. Establishment of Amount of Regional Impact Fee.
A. Except as otherwise provided in this Article, developers of residential
development shall pay a Regional Impact Fee in an amount established by
resolution of the City Council.
B. Except as otherwise provided in this Article, developers of nonresidential
development shall pay a Regional Impact Fee in an amount established by
resolution of the City Council.
Section 5 -54. Administration of Impact Fee.
A. Transfer of Funds to Finance Department: Upon receipt of Regional
Impact Fees, the City Finance Department shall be responsible for placement of
such funds into separate accounts as hereinafter specified. All such funds shall
be deposited in interest - bearing accounts in a bank authorized to receive deposits
of City funds. Interest earned by each account shall be credited to that account
and shall be used solely for the purposes specified for funds of such account.
B. Establishment and Maintenance of Accounts: The City Finance Department
shall establish separate accounts and maintain records for each such account
whereby Regional Impact Fees collected can be segregated by types of traffic
improvements to be financed.
C. Maintenance of Records: The City Finance Department shall maintain
and keep accurate financial records for each account that shall show the source
and disbursement of all revenues; that shall account for all monies received; that
shall ensure that the disbursement of funds from each account shall be used solely
and exclusively for the provision of regional traffic improvement projects; and
shall provide an annual account for each Regional Impact Fee account showing
the source and amount of all funds collected and the regional traffic improvement
projects that were funded.
D. Annual Review and Modification. The City shall annually, in conjunction with
the annual Capital Budget and Budget Improvements Plan adoption processes,
review development potential and make such modifications as deemed necessary
as a result of:
(a) development occurring in the prior year;
(b) traffic improvements actually constructed;
(c) changing circulation needs;
(d) inflation;
(e) revised cost estimates for traffic improvements;
(f) changes in the availability of other funding sources applicable to
traffic improvements;
(g) such other factors as may be relevant.
Section 5 -55. Bonding of Excess Traffic Improvement Projects.
The City may issue bonds, revenue certificates, and other obligations of indebtedness in
such manner and subject to such limitations as may be provided by law in furtherance of the
provision of regional traffic improvements. Funds pledged toward retirement of bonds, revenue
certificates, or other obligations of indebtedness for such regional traffic projects may include
Regional Impact Fees and other City revenues as may be allocated by the City Council.
Regional Impact Fees paid pursuant to this Article, however, shall be restricted to use solely and
exclusively for financing directly, or as a pledge against bonds, revenue certificates, and other
obligations of indebtedness for the cost of regional traffic improvements.
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Section 5 -56. Effect of Regional Impact Fee on Zoning and Subdivision
Regulations.
This Article shall not affect, in any manner, the permissible use of property, density of
development, design and improvement standards and requirements, or any other aspect of the
development of land or provision of capital improvements subject to the zoning and subdivision
regulations or other regulations of the City, which shall be operative and remain in full force
and effect without limitation with respect to all such development.
Section 5 -57. Regional Impact Fee as Additional and Supplemental
Requirement.
The Regional Impact Fee is in addition and supplemental to, and not in substitution of,
any other site - related improvement requirements imposed by the City on the development of land
or the issuance of Building Permits. It is intended to be consistent with and to further the
objectives and policies of the General Plan and other City policies, ordinances, and resolutions
by which the City seeks to ensure the provision of regional traffic improvements in conjunction
with the development of land. In no event, shall a property owner be obligated to pay for traffic
improvements in an amount in excess of the amount calculated pursuant to this Article;
provided, however, that a property owner may be required to pay, pursuant to City ordinances,
regulations, or policies, for other site - related improvements in addition to the Regional Impact
Fee for regional traffic improvements as specified herein.
Section 5 -58. Exemptions.
The following developments shall be exempt from the requirements of this Article:
A. Governmental or Public Facilities;
B. Developments on real property owned by a government transportation
agency which are used exclusively for public transportation purposes.
C. Public elementary schools and secondary schools.
D. Accessory uses creating no increase in traffic.
E. Reconstruction or remodel development where there is to be no increase
in use or intensity likely to cause an increase in traffic.
Any claim of exemption must be made no later than the time of application for building
permit. Any claim not so made shall be deemed waived.
Section 3. Expenditures from Fee Reserve Accounts.
All monies and interest in each of the Reserve Accounts established by this Ordinance
shall be expended on the provision of regional traffic improvement projects and programs as
approved by the City Council. Such expenditures may include, but shall not be limited to, the
following:
A. The reimbursement to cities adjacent to Cypress for the City's share of
direct and indirect costs incurred by said cities for the development of
regional traffic improvement projects and programs pursuant to this
Ordinance, including but not limited to, the costs of land acquisition,
planning, legal advice, engineering, design, construction and equipment.
B. The reimbursement for all costs incurred by the City associated with the
administration of each account.
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C. The issuance of bonds or notes, secured by the appropriate Reserve
Account, for the provision of regional traffic improvement projects and
programs.
Section 5. Liberal Construction.
The provisions of this Ordinance are hereby found and declared to be in furtherance of
public health, safety, welfare, and convenience, and they shall be liberally construed to
effectively carry out its purposes."
Section 6. Repealer.
All Ordinances, Code Sections, or parts thereof in conflict herewith shall be and the same
are hereby repealed to the extent of such conflict.
Section 7. Severability.
If any section, subsection, subdivision, sentence, clause, phrase, or portion of this
Ordinance, is for any reason to be held invalid or unconstitutional by the decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance,
and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof,
irrespective of the fact that any one or more sections, subsections, subdivisions, sentences,
clauses, phrases or portions thereof be declared invalid or unconstitutional.
Section 8. The City Clerk is hereby authorized and directed to certify as to
the passage of this Ordinance and to give notice thereof by causing copies of this Ordinance to
be posted in three public places throughout the City.
FIRST READ at a regular meeting of the City Council of the City of Cypress held on
the 12th day of September , 1994, and finally adopted and ordered posted at a regular
meeting held on the 26th day of September , 1994.
MAYOR OF THE CITY OF CYPRESS
ATTEST:
Cel4If K F t CITY OF CYPRESS
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
I, DARRELL ESSEX, City Clerk of the City of Cypress, DO HEREBY CERTIFY that
the foregoing Ordinance was duly adopted at a regular meeting of the said City Council held on
the 26th day of September , 1994, by the following roll call vote:
AYES: 5 COUNCIL MEMBERS: Age, Bowman, Kerry, Nicholson,
NOES: 0 COUNCIL MEMBERS: None and Partin
ABSENT: 0 COUNCIL MEMBERS: None
CITY CL ' OF TH CITY OF CYPRESS