CC Ordinance No. 17-2168 Adding Chapter 14.02 to the Cupertino Municipal Code to Adopt and Implement the City's Transportation Impact Fee ProgramORDINANCE NO. 17-2168
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ADDING CHAPTER 14.02 TO THE CUPERTINO MUNICIPAL CODE TO ADOPT
AND IMPLEMENT THE CITY'S TRANSPORTATION IMPACT FEE PROGRAM
WHEREAS, Mitigation Fee Act (AB 1600/ Government Code Section 66000 et seq.)
enables cities to charge fees for transportation facilities; and
WHEREAS, the City adopted an amended General Plan known as "General Plan:
Community Vision 2015 -2040" (The General Plan) on December 4, 2014; and
WHEREAS, the General Plan identifies the buildout land use and growth projections
and is based on a horizon year of 2040; and
WHEREAS, the General Plan identifies impacts on transportation and traffic impacts
from the potential future development associated with the 2040 buildout; and
WHEREAS, the City has retained Economic Planning Systems, Inc. to develop the
Transportation Impact Fee Nexus Study; and
WHEREAS, the Transportation Impact Fee Nexus Study provides the City of Cupertino
with the necessary technical documentation to support the adoption of a new Citywide
Transportation Impact Fee Program.
NOW, THEREFORE, THE CITY COUNCIL OF THE OF CITY OF CUPERTINO
DOES ORDAIN AS FOLLOWS:
Title 14 of the Cupertino Municipal Code is hereby amended to add Chapter
14.02, the "Transportation Impact Fee Program" to be numbered and entitled to read as
shown in Exhibit 1, which is incorporated herein by reference as part of this ordinance.
Effective Date. This Ordinance shall take effect thirty days after adoption as
provided by Government Code Section 36937.
Certification. The City Clerk shall certify to the passage and adoption of this
Ordinance and shall give notice of its adoption as required by law. Pursuant to
Government Code Section 36933, a summary of this Ordinance may be published and
posted in lieu of publication and posting of the entire text.
Ordinance No . 17-2168
Page 2
INTRODUCED at a regular meeting of the Cupertino City Council the 19 1h day of
September 2017 and ENACTED at a regular meeting of the Cupertino City Council on
this 3rd day of October 2017 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Members of the City Council
Vaidhyanathan, Paul, Chang, Scharf, Sinks
None
None
None
APPROVED:
~))-
Grace Schmidt, City Clerk
~.r:i:~Ar-~
Savita Vaidhyanathan,ayor,
City of Cupertino
Exhibit 1
Ordinance No. 17-2168
Page 3
CHAPTER 14.02 -TRANSPORTATION IMPACT
FEE PROGRAM
SECTION 1. The Title of this Chapter shall be known as "The
Transportation Impact Fee Program."
SECTION 2. Chapter 14.02 is hereby added to the Cupertino Municipal Code as set
forth below:
14.02.010
14.02.020
14.02.030
14.02.040
14.02.050
14.02.060
14.02.070
14.02.080
14.02 .010
Purpose
Definitions
Authority
A pp licabili ty
Transportation Impact Fee Program
Exemptions
Fee Credit
Disposition of TIF Pro gram Revenue and TIF Capital Project Construction
Purpose
The City recognizes that new development, additions to existing structures or change in
use within the City will create additional demand on the City's existing transportation
infrastructure and identifies the implementation of a Transportation Impact Fee (TIF)
Program as a mitigation measure. The purpose of the TIF Program is to generate
revenue that the City can use as a funding source for the costs of the transportation
improvements required to serve new development.
14.02.020 Definitions
Unless otherwise defined in this section, all terms used in this Chapter shall be as
defined as in Chapter 19.08, Definitions.
A. "Transportation Impact Fee" or "TIF" means the fee established pursuant to this
Chapter 14.02 . Impact fees are one-time charges on new development, additions to
existing structures, change in use, or similar construction activity that requires a
building permit, collected and used by the City to cover the cost of capital facilities
and infrastructure that are required to serve new growth.
B. "Transportation Impact Fee Program" or "TIF Program" means the impact fee
established by this Chapter and the process and programmatic steps for
appropriating and applying TIF funds for the purposes intended.
Exhibit I
Ordinance No. 17-2168
Page 4
C. "TIF Capital Project" means any one of the list of projects identified in the "TIF
Nexus Study" to be funded through the TIF Program required to mitigate new
growth.
D. "TIF Nexus Study" means the most current Technical Report prepared pursuant to
California Government Code, Section 66000 et seq., the Mitigation Fee Act, to
support the adopted TIF.
14.02.030 Authority
A. This chapter is enacted pursuant to the Mitigation Fee Act, California
Government code Section 66000 et seq.
B. The Director of Public Works, or his/her designee, is authorized to levy and
collect the TIF and make all determinations required by this Chapter.
14.02.040 Applicability
Except as otherwise expressly provided by this Chapter, the TIF required hereunder
shall be payable prior to building permit issuance, for all new development,
additions to existing structures, changes in land use within the city for which
building permits or other entitlements are required, consistent with the authority
provided under this Chapter.
Any increase in square footage and/or change in land use or development type shall
pay the established applicable fee rate on the new use based on the net increase.
14.02.050 Transportation Impact Fee Program
A. Establishment of Fee: The amount of the TIF shall be established by land use type
and shall be adopted by separate resolution of the City Council, as amended from
time to time.
B. The TIF amount shall be automatically adjusted on an annual basis at the beginning
of each fiscal year (July 1) based on the Cupertino Construction Cost index. The
Cupertino Construction Cost index is developed based upon Construction Cost
Index (CCI) cost indices for San Francisco produced by Engineering News Record
(ENR) and reported on the ENR website. Cupertino's CCI is calculated by taking the
Exhibit 1
Ordinance No. 17-2168
Page 5
average percent change (%CHG) of each month from the prior year (January
through December).
C. TIP Capital Projects may be modified to provide for the use of additional Federal,
State and local funds; to account for unexpected revenues, whether greater or lesser;
to modify, add, or delete a project from the TIP Program, consistent with the
Mitigation Fee Act; to maintain consistency with the City's General Plan; or to take
into consideration unforeseen circumstances, including, without limitation,
circumstances that may come to light as a result of subsequent CEQA environmental
review.
14.02 .060 Exemptions
The following shall be exempt from the TIP Program Fee:
A. The rehabilitation, reconstruction and/or expansion of any legal, residential unit
and/or the replacement of a previously existing legal dwelling unit that does not
cause the addition of vehicular trips as defined by the Institute of Traffic Engineers.
B. The rehabilitation and/or reconstruction of non-residential unit where there is no net
increase in square footage and/or change in development type/land use ( e.g. office to
retail).
C. Residential accessory buildings as defined in Chapter 19.08 of the Cupertino
Municipal Code.
D. Cupertino public facilities, including but not limited to, buildings, structures and
outdoor recreatio11al areas.
14.02 .070 Fee Credit
A. A fee credit may be granted to developers who fund and construct TIP Capital
Projects, subject to review and approval by the Director of Public Works. The fee
credit may not exceed the most current cost estimate of the TIP Capital Project (as
defined by annual cost review or other recent evaluation of cost) regardless of the
actual cost to construct or the actual costs of construction of the TIP Capital Project.
14.02.080 Disposition of TIP Program Revenue and TIP Capital Project Construction
All fees collected hereunder shall be deposited in a TIP Account/Fund. The TIP Fund
and any interest income earned shall be used exclusively to finance TIP Capital Projects
and pay for incidental administrative and programmatic costs.
E xh ibit 1
Ordinance No. 17-2168
Page 6
SECTION 3. Severability. If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional by decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of the Chapter. The City Council hereby declares that it would have
passed this Ordinance and each section, subsection, clause or phrase thereof irrespective
of the fact that one or more other sections, subsections, clauses or phrases may be
declared invalid or unconstitutional.
Exhibit 1
STATE OF CALIFORNIA )
COUNTY OF SANTA CLARA )
CITY OF CUPERTINO )
I, GRACE SCHMIDT, City Clerk and ex-officio Clerk of the City
Council of the City of Cupertino, California, do hereby certify the attached
to be a true and correct copy of Ordinance No. 17-2168, which was
enacted on October 3, 2017, and that it has been published or posted
pursuant to law (G.C. 40806).
IN WITNESS WHEREOF, I have hereunto set my hand and seal
this 4th day of October, 2017.
GRACE SCHMIDT, City Clerk and Ex-officio Clerk
of the City Council of the City of Cupertino, California