Resolution No. 4276RESOLUTION NO. 4276
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CYPRESS ESTABLISHING OR MODIFYING TRAFFIC
IMPROVEMENT FEES FOR DEVELOPERS WITHIN THE
CITY OF CYPRESS
WHEREAS, the City of Cypress General Plan and the
Zoning Code establish limits for the ultimate buildout of the
City; and
WHEREAS, the City's streets and roads need to be
designed to accommodate the anticipated levels of development
permitted by the General Plan and Zoning Code; and
WHEREAS, the Citywide Traffic Improvement Fee Analysis
identifies the impacts of contemplated future development on
existing circulation facilities and the improvements required to
mitigate the anticipated impacts; and
WHEREAS, the Citywide Traffic Improvement Fee Analysis
sets forth the relationship between contemplated future
development, the needed facilities, and the estimated costs of
those improvements; and
WHEREAS, the Cypress City Council of the City of
Cypress has developed an equitable system of allocating the costs
to implement the required improvements to the General Plan street
system; and
WHEREAS, the City Council of the City of Cypress has
adopted Ordinance No. 911 creating and establishing the
authority for imposing and charging Traffic Improvement Fees; and
follows:
404344S.RHS
WHEREAS, the City Council finds and determines as
A. The purpose of the Citywide Traffic Improvement
Fee is to provide funds which assist in the
implementation of the required improvements as
identified in the Citywide Traffic Improvement Fee
Analysis, in order to maintain Level of Service
standards on a fair share basis.
B. The City Council finds and determines that the
traffic to be generated by projected levels of
development in Cypress would impact the City's
adopted traffic Level of Service standards, if the
identified improvements are not provided. There
is a substantial interest in maintaining a system
of City streets which can satisfactorily
accommodate projected levels of traffic.
C. In order to project its circulation needs, the
City of Cypress took a comprehensive review of the
City's streets and traffic patterns as they
currently exist and as they are projected to exist
in the future.
D. Based on currently anticipated circulation needs,
cost estimates were prepared for the proposed
street improvements. These estimates provide a
basis for determining a fair allocation of the
costs among the users of the streets and are
incorporated by reference herein.
-1-
124
4043445.RES
E. The Cypress General Plan contains findings of the
potential for substantial new development, which
relates to increased traffic. It has been found
that all categories of development have the
potential to generate additional traffic.
F. Improvements to the current street system are
required to meet the needs identified in the
Citywide Traffic Improvement Fee Analysis. In
addition, intersection enhancements along the
"Major" streets are shown to be required to
maintain City traffic Level of Service standards.
If circulation improvements do not keep pace with
traffic growth, serious detrimental effects beyond
traffic issues could result, such as a failure to
attract economic development, a decrease in land
values, a decrease in tax revenues, lower levels
of employee productivity, and a lower quality of
life for residents.
G. Traditional transportation improvement funding
sources will not keep pace with the need for and
cost of transportation improvements caused by new
development. Current legislation also dictates
that new developments pay a fair share toward
transportation improvements lest City's funding
could be in jeopardy. The City, therefore, seeks
to require all new developments to contribute to
the cost of mitigating traffic problems by
imposing traffic improvement fees for circulation
improvements. The City has determined that other
funding sources will also be pursued (i.e.
redevelopment agency funding, property taxes,
state and federal subventions, and possible new
regional sources).
H. Although the City has the authority to adopt a fee
structure designed for complete funding of the
needed improvements, the City Council finds that
such a fee structure would be inequitable to new
development. Therefore, the fee serves to only
assign to new development its fair share of the
improvements shown to be required in the specific
Citywide Traffic Improvement Fee Analysis. The
estimated cost of these improvements is set forth
in the attached Exhibit "A" and incorporated
herein by reference.
The transportation needs, identified in the
Citywide Traffic Improvement Fee Analysis, are
based on buildout conditions identified in the
City Land Use Element. The fees are designed so
that new development will mitigate their portion
of traffic impacts. The total anticipated vehicle
trips resulting from buildout of all land use
categories is AM and PM peak hour trip ends, as
set forth in the attached Exhibit "B" and
incorporated herein by reference. As described
above, the City is offsetting the cost of the
required mitigations through funding which is
anticipated to be available to the City and can be
applied to the specified improvements.
I. The City Council finds that based upon the Traffic
Improvement Fee Analysis, there is a reasonable
relationship between the need for the improvements
to be funded by the fee and the type of
development project upon which the fee is imposed.
Specifically, every project on which the fee is
imposed generates increased traffic throughout the
-2-
City. This generation of traffic utilizes the
General Plan street system and will pay its share
of the improvement costs needed to provide the
designated system.
J. The City Council finds that there is a reasonable
relationship between the fee's use and the type
of development for which the fee is charged. The
fee will be used exclusively for circulation
improvements, such as roadway and intersection
improvements, and right -of -way acquisition,
engineering, and construction costs. The use of
the funds will, therefore, directly relate to and
benefit the development projects upon which the
fee is imposed.
K. The City Council finds that there is a reasonable
relationship between the amount of the fee and the
cost of the projected required improvements.
Costs of improvements have been identified by
using standard engineering practices. A project's
share of the total trip share has been determined
by using accepted traffic engineering trip
generation rates. Thus, the fee per project is
proportional to that project's contribution to the
increased traffic.
NOW, THEREFORE, the City Council of the City of Cypress
does hereby resolve as follows:
1. Definitions.
(a) "AM and PM Peak Hour Trip Ends" means the
trip generation potential for each
development to generate new traffic on the
G.P. /C.E. road system during the peak hours.
The peak hour is the one -hour period of
highest traffic volume during the typical AM
and PM peak periods.
(b) "Circulation Improvement or Improvements"
means the construction of or improvement to
street rights -of -way, traffic signals,
overcrossings, underpasses, curbs, gutters,
sidewalks, street pavement and drainage
improvements incidental to street
improvements necessary to provide traffic
circulation consistent with the G.P. /C.E.
(c) "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.
2. Fee Imposed.
(a) A Traffic Improvement Fee shall be charged
and paid at the time of issuance of a
building permit for development.
(b) To the extent permitted by law, the fee
established by this resolution shall be paid
prior to occupancy for any project not
required to obtain a building permit from the
City of Cypress.
3. Exemptions. The following developments shall be
exempt from imposition of Traffic Improvement Fees:
4043445.RES
-3-
126
4043445.REs
(a) Non - revenue generating public buildings and
facilities.
(b) Reconstruction or remodel development where
there is no increase in use or intensity
causing an increase in traffic.
(c) Accessory uses creating no increase in
traffic.
(d) Development projects for which a development
entitlement application was deemed complete
by the City prior to the adoption of this
Resolution provided however, that this
exemption shall not override any condition of
approval for a project which specifically
requires payment of fees for the purposes of
mitigating impacts on traffic or capital
improvement projects.
4. Fee Amount Calculations.
The fee amount calculation is based upon the
amount of funding required, divided by the new
traffic expected to be generated. The result is
that all new traffic which causes incremental
traffic impacts will pay the same fee per trip
end. In other words, all new traffic will use the
G.P. /C.E. street system and is, therefore, treated
equally.
However, different land uses generate varying
amounts of traffic, given the same building square
footage (i.e., office uses generate more traffic
per square foot than warehouse uses). The
Institute of Transportation Engineers (ITE)
publication, Trip Generation, Fifth Edition, was
referenced to convert the "fee per trip end" to
the "FEE RATE" for specific land uses (per their
appropriate descriptor; i.e., per square foot, per
dwelling unit, etc.)
Exhibit "B" presents a summary of the fee amount
calculations and provides an example of how the
"FEE RATE" is calculated for a specific land use.
Utilizing this procedure, "FEE RATES" were
calculated for many of the common potential land
uses and the results are presented in Exhibit "C."
It is realized that some potential land uses will
not be adequately described by Exhibit "C." In
these cases, City Staff will determine the
applicable rates using the procedures outlined in
Exhibit "B." For some special uses, City Staff
may request the applicant to provide a study
documenting the trip generation for the proposed
project.
5. Expenditure of the Fees.
Fees in the Traffic Improvement Fee Account shall
be expended only at those locations identified in
the Citywide Traffic Improvement Fee Analysis and
only for the purpose for which the fee was
intended.
6. Review and Reporting.
(a) Not later than January 30 of each year,
following the date of adoption of this
Resolution, a report shall be prepared by the
-4-
City Manager for the City Council to make
findings with respect to any portion of the
traffic improvement fees remaining unexpended
or uncommitted in its account five or more
years after deposit of those fees, to
identify the purpose to which the fees are to
be put, and to demonstrate a reasonable
relationship between the fees and the purpose
for which they were charged. The required
findings need only be made for moneys in the
possession of the City.
(b) The City Council shall review the report at a
noticed public hearing. The City shall
refund to the then current record owner or
owners of the development project or projects
on a prorated basis the unexpended portion of
the fee, with interest, for which need cannot
be demonstrated pursuant to subsection (a)
above.
8. Subsequent Analysis of Fees.
The City Council may revise the fee based on
subsequent studies or Circulation Element updates
that have been prepared by the City. The City
Council may revise the Fee to incorporate the
findings and conclusions of further studies.
PASSED AND ADOPTED by the City Council of the City of Cypress at an
adjourned regular meeting held on the 31st day of January 1994.
MAYOR OF THE CITY OF CYPRESS
ATTEST:
CIT CLE OF THE CITY OF CYPRESS
STATE OF CALIFORNIA )
SS
COUNTY OF ORANGE )
I, DARRELL ESSEX, City Clerk of the City of Cypress, DO
HEREBY CERTIFY that the foregoing Resolution was duly adopted at
an adjourned regular meeting of the said City Council held on the 31st day of
January 1994; by the following roll call vote:
AYES: 5
NOES: 0
ABSENT: 0
4043445.REs
COUNCIL MEMBER: Age, Bowman, Kerry, Nicholson
and Partin
COUNCIL MEMBER: None
COUNCIL MEMBER: None
ljtf>1-4
CITY CLE (OF CITY OF CYPRESS
-5-
128
EXHIBIT A
ESTIMATED MITIGATION COSTS
MITIGATION LOCATION FULL LINCOLN MITIGATION
Lincoln Avenue Upgradc
Four to Six Lanes $ 9,255,000
Moody /Lincoln (a)
Walker/Lincolnm (a) + $ 364,000
Valley View/Ball $ 1,260,000
Valley View /Katella $ 785,000
Holder Strcct Bridge $ 150,000
Denni Street Extension $ 0
Valley View /Cerritos $ 155,000
Katella/Holder $ 108,000
$12,072,000
(a) Included in the Lincoln Avenue Upgrade costs.
(b) It appears that the building at the northeast corner would be impacted by the
ultimate widening. The cost of business relocation, modification of the building,
etc. is Ili included in these cost estimates.
11
11
($499 per AM Sc PM Trip End)
II
x
II u II
t
g 3
I o
P.
..
a
al A.
z P 45 g. 1
44
v...
.‘. ilt)
ieE-i g (15 U
o
II
es
It
a
1
it
i w;
b a)
a.
t e3' a d
• w
Y
.4
C
3 h
an
V
v $"'B, V
E e 1 • 0
o C
n�
u
9 a "A
<1 w w
h
i fa i
EXHIBIT C
CITYWIDE TRAFFIC IMPROVEMENT FEE RATES
LAND USE
COMM ERCIALLRIITAIL
• Shopping Center
Total Size
o s 50,000 SF
o 100,000 SF
o 200,000 SF
o 300,000 SF
• Restaurant
o Fast Food w /Drive- Through
o Fast Food w/o Drive - Through
o High Turnover (Family)
o Quality (Dinner House)
• Hotel
• Motel
• Discount Store (Freestanding)
• Hardware/Paint Store
• New Car Sales
RESI DEMI1AL
• Single Family
(Low Density)
• Low Rise Condo/Townhome
(Medium Density)
• Low Rise Apartment
(High Density)
• Retirement Community
• Elderly Housing (Attached)
FEE RATh
$2.65
$2.45
$2.25
$2.05
$27.54
$24.05
$11.98
$3.84
$599
$599
$1.97
$2.97
$2.29
$873
$744
$524
$225
$65
DESCRIPTOR
per SF
per SF
per SF
per SP
per SF
per SF
per SF
per SF
per Room
per Room
per SF
per SF
per SF
per DU
per DU
per DU
per DU
per DU
Includes 50% Passby Credit
Includes 40% Passby Credit
Includes 30% Passby Credit
Includes 25% Passby Credit
Includes 40% Passby Credit
Includes 40% Passby Credit
Includes 25% Passby Credit
Includes 10% Passby Credit
Given the potential locations,
the business hotel rates were
used.
EXHIBIT C (cont.)
CITYWIDE TRAFFIC IMPROVEMENT FEE RATES
LAND og FILE= DESCRIPTOR
BUSINESS PARK (*)
• General Office
Top) Size
o g 50,000 SF $2.23 per SF
o 100,000 SF $1.88 per SF
o 200,000 SF $1.00 per SF
o 400,000 SF $1.35 per SF
o 000,000 SF $1.28 per SF
o 800,000 SF or greater $1.14 per SF
• Single Tenant/Corporate Office $1.75 per SF
• Research & Development $1.15 per SF
• Warehouse $0.65 per SF
• Light Industrial $0.95 per SF
• Manufacturing $0.76 per SF
(a) Based on TDM assumptions and reduction requirements included in the fee analyses, the rates for the
"Business Park" developments would be reduced by 3;5 percent. It should be noted that development
restrictions arc planned to insure compliance with the TDM reduction assumptions.