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HomeMy WebLinkAboutCD Traffic Mitigation Fee AmendmentCITY OF �%/ � • l Agenda Item No: 3a Meeting Date: July 2, 2012 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Communi Develo meat Department Prepared by: Paul A. Jensen, Director City Manager Approval: SUBJECT: Amendment to Citywide Traffic Mitigation Fee — Request to amend City Council Resolution 11668 (Citywide Traffic Mitigation Fee) to waive the fee requirement for new or the legalization of existing second dwelling units (File No P12-002). RECOMMENDATION: Staff recommends that the City Council adopt the attached, resolution amending Resolution 11668 (Attachment 1). BACKGROUND: History In 1988, following the adoption of the San Rafael General Plan 2000, the City Council adopted Resolution 7882, which established a traffic mitigation fee program that was applicable to three traffic -sensitive areas of the City (North San Rafael, East San Rafael and Downtown). Essentially, the program was established as a funding source for the planned transportation improvements needed to accommodate land use development that was planned and projected in the General Plan. As such, the fee was established so that it would be levied on new development, as new development would trigger additional traffic and the corresponding need for the planned transportation improvements. This initial traffic mitigation fee was charged based on a development project's contribution to weekday, PM peak hour traffic conditions. The fee amount varied for the three traffic -sensitive areas, as it was based on the amount and complexity of the transportation improvements needed for each area. In 2004, a comprehensive update of the General Plan was adopted (San Rafael General Plan 2020), which included an updated list of planned, citywide transportation improvements. Consequently, the traffic mitigation fee was updated and applied citywide (Resolution 11668). This update also included a change in the fee amount ($4,246/peak hour trip) and structure (fees now charged for a project's collective contribution to both week day AM and PM peak hour traffic conditions). Resolution 11668 included a list of projects and land uses that would be exempt from these fees, which are: cultural and theater facilities excluding nightclubs in Downtown; childcare facilities; and affordable housing projects. For the development of a new single-family residence, the traffic mitigation fee is $8,492, which is the combined AM and PM peak hour trip generation for a residence (two peak hour trips). As a practice, all new or the legalization of existing second dwelling are charged '12 the fee of a new single-family dwelling, which is the amount for one, single peak hour trip ($4,626). FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 In 2009, the City initiated an update of the San Rafael General Plan 2020 Housing Element. Included in this effort was the preparation of the Second Dwelling Unit Progress Report 2009. A summary of key points in this progress report is provided as follows: The City encourages second dwelling units as they provide a good source of affordable housing. Based on a survey and research of market rents for second dwelling units, about 50% of second dwelling units are affordable to very -low-income households. 2. As the second dwelling unit code provisions were relaxed in 2003 (following changes in State law), the 2004 General Plan 2020 estimated that 34 second dwelling units per year would be built or legalized during the time frame of the Housing Element. However, the progress report found that this production number did not come close to being realized. In fact, between 2003 and 2008, a total of 36 second dwelling units were approved and/or legalized citywide. 3. The cost of building a new second dwelling unit is high for the property owner. This cost can range from about $35,000 (internal conversion of existing residence space + permits and utility fees) to as much as $180,000 (new construction of a detached one -bedroom cottage + permits and utility fees). A survey of property owners with second dwelling units was conducted as part of the progress report. When questioned about permits and fees for second dwelling units, the one universal concern disclosed in the survey results is that the property owners find the traffic mitigation fee to be too high and is often the reason for not pursuing a second dwelling unit. Similarly, the Planning Division staff receives many inquiries from property owners about pursuing second dwelling units; the proposals are often dropped when the traffic mitigation fee requirement is disclosed to the owner. The Second Dwelling Unit Progress Report 2009 was included in the reports and recommendations for the Housing Element 2007-2014 update, which was adopted by the City Council in mid -2011. As a result of the progress report, the Housing Element includes the following policy and program to encourage second dwelling units: Policy H-25. Second Units. Encourage the provision of second units consistent with State law. Continue to require owner occupancy of one of the units and adequate on-site parking. Program H -25e. City Fees to Reduce Second Dwelling Unit Costs. Amend the Citywide Traffic Mitigation Fee to waive the amount that is currently charged for second dwelling units, as a financial incentive and cost savings to the property owner. Implement a deferred and/or easy - payment -plan for required city fees. Explore using the commercial in -lieu fees to subsidize second dwelling unit fees. Project Description Consistent with Housing Element Program H -25e, staff is proposing to amend Resolution 11668 to exempt second dwelling units from the Citywide Traffic Mitigation Fee. A resolution has been prepared (Attachment 1), which presents the amended language to include second dwelling units among the list of uses and developments that are exempt from this fee. No other amendments are proposed to Resolution 11668 that would change the structure of the fee or the fee amount. The Department of Public Works will be studying the current $4,626 mitigation fee to determine if it needs to be adjusted for inflation. However, a proposal to adjust the fee amount will be brought forward to the City Council as a separate matter. ANALYSIS: Relationship to San Rafael General Plan 2020 and Zoning As discussed above, the amendment to Resolution 11668 would be consistent with General Plan 2020 Housing Element Policy H-25 and would implement Program H -25e. Further, this action would be consistent with General Plan Circulation Program C -7a (Traffic Mitigation Fees), which calls for the City to "implement and periodically update the City's Traffic Mitigation Program." SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 The proposal to waive the traffic mitigation fee for second dwelling units would be consistent with the provisions of the Zoning Ordinance (San Rafael Municipal Code — Title 14). SRMC Section 14.03.030 defines a second dwelling unit as an additional residence located on the same lot as a single-family dwelling, but one that meets "defined standards." The defined standards prescribed by the Zoning Ordinance limit the size and location of a second dwelling unit to ensure that it is maintained an ancillary or secondary use on a single-family residential lot. The City Public Works Director has reviewed this proposal to address potential traffic impacts and traffic modeling implications. The Public Works Director finds that: a) the amount of traffic generated by a second dwelling unit during the AM and PM peak hour is minimal and is generally combined and/or absorbed with the peak hour traffic generation of the primary single-family residence; and b) the amount of second dwelling units that have been permitted citywide in combination with the number of such units planned and projected in the General Plan are not enough to result in a noticeable difference in traffic conditions or the projections that have been considered in the citywide traffic model. For this reason, the separate mitigation fee for a second dwelling unit is not warranted. Environmental Review The Citywide Traffic Mitigation Fee addressed in Resolution 11668 is an environmental mitigation measure that was required to adopt the San Rafael General Plan 2020. To implement this mitigation measure, the General Plan 2020 includes Circulation Element Policy C-7 (Circulation Improvement Funding) and accompanying Program C -7a (Traffic Mitigation Fee). The proposed amendment to waive second dwelling units from the traffic mitigation fee requirement would not impact, change or undermine the citywide fee as an environmental mitigation required by the General Plan 2020 EIR. In fact, Program C -7a calls for the City to "implement and periodically update the City's Traffic Mitigation Program." For this reason, the proposed action would be covered under the certified San Rafael General Plan 2020 EIR and would be consistent with the directives of Program C -7a; no further environmental review is required. NOTICING/CORRESPONDENCE: No special noticing of this project was completed FISCAL IMPACT: The proposed project would have no fiscal impact on the City of San Rafael. As discussed above, the City Department of Public Works, Transportation Division has determined that the amount of traffic generated by second dwelling units is so minimal to the citywide transportation network, the units do not warrant the charging of a traffic mitigation fee. OPTIONS: The City Council has the following options to consider on this matter: 1. Adopt the resolution as proposed; 2. Continue action for additional information and response to Council comments and concerns; or 3. Reject the proposal to amend Resolution 11668. ACTION REQUIRED: It is recommended that the City Council: 1. Review the staff report and resolution; and 2. Adopt the resolution. ATTACHMENTS: Attachment 1 — Resolution amending City Council Resolution 11668 Attachment 2 — Memorandum from the Department of Public Works to the Community Development Department addressing fee waiver for second dwelling units; June 21, 2012 trffmitfee.Mpt 7-12 RESOLUTION NO. 13364 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AMENDING RESOLUTION 11668 (REQUIRING THE IMPOSING OF TRAFFIC MITIGATION FEES ON DEVELOPMENT PROJECTS CITYWIDE) EXEMPTING THE CREATION OF NEW OR LEGALIZATION OF EXISTING SECOND DWELLING UNITS FROM THE CITYWIDE TRAFFIC MITIGATION FEE REQUIREMENT (P12-002) The City Council of the City of San Rafael finds and determines that: WHEREAS, San Rafael Municipal Code (SRMC) Section 3.32 provides enabling legislation for the City Council to create and establish the authority to impose and charge Public Facility Fees; and WHEREAS, pursuant to SRMC Section 3.32, on December 19, 1988, the City Council adopted Resolution No. 7882 establishing traffic mitigation fees required for new development for three zones of benefit within the City. The adoption of these traffic mitigation fees was done in conjunction with the adoption of and as implementation to the San Rafael General Plan 2000; and WHEREAS, in 2002, the City initiated an update of the San Rafael General Plan 2000, which included revisions to the Land Use and Circulation Elements. On November 15, 2004, the City Council adopted the San Rafael General Plan 2020. The General Plan 2020 includes policies and programs intended to address and mitigate traffic and transportation impacts associated with new land development within the City. Specifically, General Plan 2020 Circulation Element Policy C-5 (Traffic Level of Service Standards) sets forth intersection and arterial segment level of service standards that are to be maintained as new development is proposed, approved and built. Further, the Circulation Element includes: a) Policy C-6 (Proposed Improvements) which sets forth a list of planned transportation improvements that are deemed necessary to accommodate planned growth under the General Plan 2020, along with the estimated cost of needed improvements and timing; and b) Policy C-7 (Circulation Improvements Funding) which outlines the funding sources for the needed circulation improvements, which include, among others, traffic mitigation fees. Lastly, Circulation Element Program C -7a (Traffic Mitigation Fees) directs that the City continue to implement and periodically update the traffic mitigation fee program; and WHEREAS, in conjunction and concurrent with the adoption of the San Rafael General Plan 2020, on November 15, 2004, the City Council adopted Resolution No. 11668, which updates the City's traffic mitigation fee program to: a) address and apply fees to both AM and PM peak hour traffic conditions; and b) apply the fees citywide. This action updated the fee amount to $4,246.00 per peak hour trip (a collective amount of both AM and PM peak hour trips generated by new development). Resolution No. 11668 requires the application of traffic mitigation fees to all new development except for cultural and theater facilities (excluding night clubs in Downtown, childcare facilities and affordable housing projects; and WHEREAS, in 2009 the City prepared and published the Second Dwelling Unit Progress Report - 2009. The San Rafael General Plan 2020 Housing Element encourages second dwelling units as they provide a good source of affordable housing for the community. The purpose of the progress report, among others, was to assess second dwelling unit production since the 2004 adoption of the San Rafael General Plan 2020 as the General Plan estimated that 34 second dwelling units per year would be built or legalized during this time frame. The report disclosed that between 2004 and 2009, a total of 32 second dwelling units were built or legalized citywide, far below the per year estimate cited in the General Plan. Further, the report disclosed that one of the biggest obstacles to building a new or legalizing an existing second dwelling unit is the requirement to pay traffic mitigation fees; and WHEREAS, as a result of the findings of the Second Dwelling Unit Progress Report - 2009, in August 2011, the City Council adopted an amendment to the San Rafael General Plan 2020, which incorporated a new Housing Element Program H -25e (City Fees to Reduced Second Dwelling Unit Costs), which directs that the Citywide Traffic Mitigation Fee to waive the amount that is currently charged for second dwelling units; and WHEREAS, the Department of Public Works, Transportation Division has reviewed and supports the proposal to waive the Citywide Traffic Mitigation Fee for second dwelling units. The Public Works Director finds that: a) the amount of traffic generated by a second dwelling unit during the AM and PM peak hour is minimal and is generally combined and/or absorbed with the peak hour traffic generation of the primary single-family residence; and b) the amount of second dwelling units that have been permitted citywide in combination with the number of such units planned and projected in the General Plan are not enough to result in a noticeable difference in traffic conditions. For these reasons, the fee is not warranted for second dwelling units; and WHEREAS, no other amendments are proposed to Resolution 11668 that would change the structure or purpose of the fee, or the fee amount. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael hereby adopts an amendment to Resolution 11668 (Citywide Traffic Mitigation Fee) exempting the creation of new or the legalization of existing second dwelling units from the mitigation fee payment based on the following findings: The exemption of second dwelling units from the Citywide Traffic Mitigation Fee would be consistent with San Rafael General Plan 2020 Housing Element Policy H-25 (Second Units) and Programs H -25b (Second Unit Assistance) in that the action would: a) encourage new and the legalization of existing second dwelling units, which are a source of affordable housing in the community; and b) provide a financial incentive and assistance to property owners that are being encouraged to legalize existing second dwelling units. Further, this action would implement Housing Element Program H -25e (City Fees to Reduce Second Dwelling Unit Costs), which directs that this traffic mitigation fee be waived for second dwelling units. The exemption of second dwelling units from the Citywide Traffic Mitigation Fee would not be detrimental to the health, safety and welfare of the community in that the Department of Public Works, Transportation Division has concluded that the amount of traffic generated by second dwelling units is minimal and ancillary to the traffic generated by the primary single-family residences. As such, the charging of a traffic mitigation fee for a second dwelling unit is not warranted. BE IT FURTHER RESOLVED that the City Council of the City of San Rafael does hereby adopt this resolution amending Resolution 11668 (Citywide Traffic Mitigation Fee) to 2 expand list of projects and uses exempt from this fee to include the creation of new or legalization of existing second dwelling units to read as follows: "The City Council has determined that: 1) cultural and theater facilities, excluding nightclubs in Downtown, 2) childcare facilities, 3) affordable housing projects, and 4) development of new or the legalization of existing, second dwelling units shall be exempt from traffic mitigation fees." I, ESTHER BEIRNE, Clerk of the City of San Rafael, hereby certify, that the foregoing resolution was duly introduced and read at a regular meeting of the San Rafael City Council held on the 2nd day of July, 2012, by the following vote, to wit: AYES COUNCILMEMBERS NOES COUNCILMEMBERS Connolly, Levine, McCullough & Mayor Phillips None ABSENT COUNCILMEMBERS: Heller ESTHER C. BEIRNE, City Clerk Attachment 2 CITY OF SAN RAFAEL, CALIFORNIA DEPARTMENT OF PUBLIC WORKS INTERDEPARTMENTAL MEMORANDUM TO: PAUL JENSEN DATE: JUNE 21, 2012 COMMUNITY DEVELOPMENT DIRECTOR FROM: NADER MANSOURIAN FILE NO: 13.02.17 PUBLIC WORKS DIRECTOR SUBJECT: SECOND UNIT TRAFFIC MITIGATION FEE EXEMPTION This memo confirms our discussions about potential elimination of the traffic mitigation fee for second units. Since the General Plan 2020 update in 2004, we received a handful of planning referrals to comment on second units; and based on our previous years analysis, we charged V2 AM and 'lz PM peak traffic mitigation fee. The projected number of second units analyzed in the General Plan build -out scenarios was much greater than ever occurred. Therefore, the actual impact of the second units has been insignificant. In addition, we received complaints from each of the applicants that the traffic mitigation fee is exorbitant compared to the tenant improvements and the units will be used by family members that are elderly and do not drive. Based on the historic records, we believe the traffic impact of the second units is negligible and it would be a good policy to include this use to the landuse exempt from the City's Traffic Mitigation fee. TITLE OF DOCUMENT: Amendment to Citywide Traffic Mitigation Fee Department Head (signature) *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City Manager (signature) NOT APPROVED APPROVED AS TO FORM: City Attorney (signature) P- W4-"p-q- pp �` U EUJUN 1 V CITY OF SAN RAFAEL 2 12012 ROUTING SLIP / APPROVAL FORM CI INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA / SRCC AGENDA ITEM NO. 3 A DATE OF MEETING: July 2, 2012 FROM: PAUL A. JENSEN DEPARTMENT: Community Development DATE: June 21, 2012 TITLE OF DOCUMENT: Amendment to Citywide Traffic Mitigation Fee Department Head (signature) *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City Manager (signature) NOT APPROVED APPROVED AS TO FORM: City Attorney (signature)