8 Resolution Suspending the Collection of Regional Transportation Impact Fees Established by Ordinance No. 613 and Codified in Title 4 Chapter 7 of the Livingston Municipal Code.

Note from TheGardeningSnail: Part of this post may have been produced by running a PDF Image File through a program that converts Image to Print. My apologies for any textual gremlins that may have crept in.

Meeting Date: June 21, 2016

STAFF REPORT

AGENDA ITEM: Resolution Suspending the Collection of Regional Transportation Impact Fees Established by Ordinance No. 613 and Codified in Title 4 Chapter 7 of the Livingston Municipal Code.

MEETING DATE: June 21, 2016

PREPARED BY: Jose M. Sanchez, City Attorney

Odi Ortiz, Interim City Manager

RECOMMENDATION:

Consider adoption of Resolution suspending the collection of Regional Transportation Impact Fees established by Ordinance No. 613 and codified in Title 4 Chapter 7 of the Livingston Municipal Code.

BACKGROUND:

On May 20, 2014, the City Council adopted Ordinance No. 613, establishing a Regional Transportation Impact Fee ("RTIF"). The RTIF was developed by the Merced County Association of Governments ("MCAG") as the funding mechanism to fund transportation improvements within the County. The RTIF sets forth the following fees:

Residential, single-family

$3,115.00 per dwelling unit

Residential, multi-family

$1,892.00 per dwelling unit

Retail commercial, general

$4,146.00 per 1,000 square foot floor area

Retail commercial, high turnover

$12,082.00 per 1,000 square foot floor area

Retail commercial, low turnover

$2,780.00 per 1,000 square foot floor area

Retail commercial, over 50,000 square feet

$7,161.00 per 1,000 square foot floor area

Office commercial

$3,337.00 per 1,000 square foot floor area

Industrial/ag processing

$1,409.00 per 1,000 square foot floor area

Many cities within the County and the County have established the RTIF. However, because the RTIF is a city-fee and county-fee, the cities and County have the option to opt in and out of the RTIF. In 2012 the City of Los Banos suspended the collection of certain categories of the RTIF in order to help promote economic development.

DISCUSSION:

At the City Council special meeting scheduled on June 8, 2016, the City Council discussed the RTIF and the possibility of suspending the collection of this fee. The City Council directed staff to prepare appropriate documents for the Council to consider such suspension.

The Council was concerned with how the RTIF has affected economic development within the City. The consensus was that reducing impact fees may provide an economic development incentive to stimulate needed construction/development within the City. Council was concerned that having a regional fee set County wide at the same rates for all jurisdictions hurts the smaller cities, given that developers may make the business decision to develop in larger cities if the fee amounts are equal.

Council Members were also concerned with the minimal Livingston projects and their timing under the MCAG plan of improvements.

The attached Resolution will suspend the collection of the RTIF immediately upon the adoption of the Resolution. The suspension will be in effect until the City Council decides to resume such collection. The Resolution will not be amending or removing the RTIF from the Livingston Municipal Code, it will simply be suspending the collection of the fee.

FISCAL IMPACT:

Staff anticipates that suspension of the fee will result in an increase of interest by developers to construct projects within the City. This will hopefully increase sales taxes and property taxes collected by the City.

ATTACHMENTS:

1. Resolution No. 2016-

2670709.1

RESOLUTION NO. 2016

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON SUSPENDING THE COLLECTION OF REGIONAL TRANSPORTATION IMPACT FEES ESTABLISHED BY ORDINANCE NO. 613, AND

CODIFIED IN TITLE 4 CHAPTER 7 OF THE LIVINGSTON MUNICIPAL CODE

WHEREAS, Development Impact Fees are levied on new development to cover the cost of infrastructure or facilities necessitated by that development pursuant to the Mitigation Fee Act (California Government Code section 66000 et. seq.); and

WHEREAS, on May 20, 2014, the Livingston City Council adopted Ordinance No. 613, establishing a Regional Transportation Impact Fee ("RTIF"). The RTIF was codified as Title 4, Chapter 7, "Regional Transpiration Impact Fee," in the Livingston Municipal Code; and

WHEREAS, since the adoption of the RTIF, the City of Livingston and the rest of Merced County continued to experience the effects of the economic recession which impacted new development in the City; and

WHEREAS, although reports indicate that economic conditions are getting better, the Central Valley has not seen the same level of improvement as other areas in the State; and

WHEREAS, the City Council is concerned that the current level of Development Impact Fees, specifically the RTIF, may be creating a barrier to the commencement of new development projects; and

WHEREAS, a resumption of development is vital to the continuing well-being of the community and to the community’s recovery from the recession; and

WHEREAS, the suspension of the RTIF will serve as an economic development incentive to stimulate needed construction/development; and

WHEREAS, the suspension of the RTIF will be effective immediately; and

WHEREAS, the adoption of this Resolution is exempt from the provisions of CEQA, in that it is not a project under CEQA pursuant to subdivision (b) (4) of section 15378 of CEQA Guidelines, Title 14 of the California Code of Regulations.

NOW THEREFORE, the City Council of the City of Livingston does hereby resolve as follows:

Section 1. Recitals: The above stated recitals are true and correct.

Section 2. Suspension of Regional Transportation Impact Fee: The collection of fees charged pursuant to Title 4 Chapter 7 of the Livingston Municipal Code (Regional Transportation Impact Fee) is suspended from the effective date of this Resolution.

Section 3. Relationship to Prior Resolutions and Ordinances: This Resolution does not repeal Ordinance No. 613, or amend the rates set forth by said Ordinance, alter any finding by said Ordinance, or otherwise affect the operation of said Ordinance except as specifically set forth herein.

Section 4. Effect: No provision of this Resolution shall entitle any person who has already paid Regional Transportation Impact Fees to receive a refund, credit or reimbursement of such payment.

Section 5. Expiration: This suspension under this Resolution will continue until the majority of the City Council takes action to resume collection of the RTIF.

Section 6. CEOA: This Resolution is exempt from the provisions of CEQA, in that it is not a project under CEQA pursuant to subdivision (b) (4) of section 15378 of CEQA Guidelines, Title 14 of the California Code of Regulations, because this Resolution only relates to a governmental funding mechanism, or fiscal activities, which do not involve any commitment to any specific project, which may result in a potentially significant physical impact on the environment.

Section 7. Severability: If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Resolution, or any part thereof, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof.

Section 8. Effective Date: This Resolution shall go into effect and be in full force immediately upon adoption

Passed and adopted this _ day of , 2016, by the following vote:

AYES:

NOES:

ABSENT:

 
 

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Rodrigo Espinoza, Mayor of the City of Livingston

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ATTEST:

I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a regular meeting of the City Council of the City of Livingston this day of _ 2016.

 
 

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Betty Cota, Deputy City Clerk

of the City of Livingston

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