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RESOLUTION NO. 2022-033
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CORONA, CALIFORNIA, ADOPTING THE LOCAL
TRAFFIC FACILITIES DEVELOPMENT IMPACT FEE
FOR STREET IMPROVEMENTS ON COURTNEY STREET
AND PORTIONS OF NELSON STREET, HOWE STREET,
AND DUNCAN WAY AND AUTHORIZING THE CITY
MANAGER TO RELEASE PUBLIC IMPROVEMENT
LIENS UPON PAYMENT OF THE LOCAL TRAFFIC
FACILITIES DEVELOPMENT IMPACT FEE.
WHEREAS, in 1925, an area in the City of Corona known as the Overlook Area, which is approximately 40 acres in the southwest area of the City near Masters Drive, was subdivided into 50-foot wide lots; and
WHEREAS, portions of lots within the Overlook Area were dedicated for street purposes, but they were not required to be improved as a condition of approval for the subdivision; and
WHEREAS, as portions of the Outlook Area developed, each property owner was, and still is, required to construct or guarantee the construction of public improvements fronting their property prior to obtaining building permits for development of the property; and WHEREAS, several property owners in the Outlook Area elected to have liens recorded against their property to secure construction of the public improvements, with such liens due and payable at such time that the City requests that the public improvements be constructed; and
WHEREAS, Government Code Sections 66000 et seq. (also known as the “Mitigation Fee Act”) authorizes the legislative body of a city to impose impact fees on development projects for the purpose of defraying all or a portion of the cost of public facilities related to the development project; and
WHEREAS, in June 2020, Willdan Financial Services prepared the Local Traffic Facilities Development Impact Fee Study (“Fee Study”), attached hereto as Exhibit “A” and incorporated herein by reference, which analyzed the need for local street frontage improvements (curb, gutter, AC paving and other ancillary improvements) (“Street Improvements”) on certain streets within the Overlook Area to accommodate new development; and WHEREAS, the Fee Study set forth a reasonable methodology and analysis for the determination of the impact of new development on the need and costs for Street Improvements on the following streets within the Overlook Area: Courtney Street and portions of Nelson Street, Howe Street, and Duncan Way; and
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WHEREAS, on June 17, 2020, the City Council conducted a public hearing pursuant to Government Code Section 66016 and adopted the Fee Study, which supported the imposition of the Local Traffic Facilities Development Impact Fee for the lots identified in Exhibit “B” attached hereto and incorporated herein by reference (“Affected Lots”); and WHEREAS, prior to the adoption of the Fee Study, the City: 1) made available to the public, at least ten days prior to the public hearing, data indicating the estimated cost required to provide the Street Improvements for which the proposed Local Traffic Facilities Development Fee is levied and the revenue sources anticipated to provide those improvements; 2) mailed notice at least fourteen days prior to the public hearing to all interested parties who requested notice of new or increased development fees; and 3) held a duly noticed, regularly scheduled public hearing at which oral and written testimony was received regarding the proposed fee; and WHEREAS, on June 17, 2020, the City Council also awarded a contract for the construction of the Street Improvements, described as “Project No. 2015-02 – Overlook Street Improvements Nelson Street, Courtney Street, Duncan Way, and Howe Street”; and WHEREAS, on or about March 17, 2020, the City determined that Project No. 2015-02 was complete, and on March 18, 2021, a Notice of Completion was recorded in the Official Records of the County of Riverside as Document No. 2021-0173167; and WHEREAS, the Local Traffic Facilities Development Fee, which is calculated based upon the linear foot of street frontage of each Affected Lot, reflects the reasonable cost of constructing the Street Improvements attributable to the Affected Lots; and WHEREAS, the Local Traffic Facilities Development Fee will be imposed on those Affected Lots that remain to be developed prior to issuance of a building permit; and WHEREAS, for the Affected Lots upon which a public improvement lien has been recorded, the lien will be released upon payment of the Local Traffic Facilities Development Fee, which fee is based on the length of the Affected Lots’ street frontage; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, AS FOLLOWS:
SECTION 1. Recitals. The above recitals are true and correct and incorporated herein by reference.
SECTION 2. CEQA. On June 17, 2020, the City Council determined that the award of the construction contract for the Street Improvements and the adoption of the Fee Study was categorically exempt pursuant to Section 15301(c) of the Guidelines for the California CA\JR\07000.35502\10262762.1 3
Environmental Quality Act (CEQA), which states that a project that consists of minor repairs, maintenance and alterations to existing streets, including sidewalks gutters and similar facilities, involving negligible or no expansion of existing or former use is exempt from CEQA. The Street Improvements involved minor repairs and alterations to existing streets to complete the street frontage improvements and did not result in additional automobile lanes or otherwise expand the existing use of the streets. Therefore, no environmental analysis was required. The adoption of this Resolution is statutorily exempt pursuant to Section 15273(a)(4) of the Guidelines for CEQA, which states that CEQA does not apply to the establishment or approval of charges by public agencies imposed for the purpose of obtaining funds for capital projects necessary to maintain service within existing service areas. The adoption of this Resolution will authorize the levy of a development impact fee to reimburse the City for the cost to construct the Street Improvements, which are necessary to maintain service on the existing streets adjacent to the Affected Lots. Therefore, no environmental analysis is required.
SECTION 3. Mitigation Fee Act Findings. The City Council finds and determines that the Local Traffic Facilities Development Impact Fee as outlined in Section 4 complies with California Government Code section 66001 and is consistent with the requirements of the Mitigation Fee Act based upon the following:
(A) Purpose of the fee. It is the City’s policy that new development will not burden the existing service population with the cost of facilities and improvements required to accommodate growth. The primary policy objective of a development impact fee program is to ensure that new development pays the fair share of the capital costs associated with growth. The purpose of the Local Traffic Facilities Development Impact Fee is to cover the cost to complete the street frontage improvements adjacent to the Affected Lots to accommodate new development. The fee advances a legitimate City interest by enabling the City to provide public facilities to new development.
(B) Use of the fee. The proceeds from the Local Traffic Facilities Development Impact Fee will be used solely to pay for the construction of the Street Improvements to serve new development on the Affected Lots. New developments result in increased demands on the City’s facilities, and the Local Traffic Facilities Development Impact Fee will not be used to overcome past deficiencies, but rather to cover the cost of constructing additional facilities necessary to meet the needs of new development on the Affected Lots. (C) Benefit relationship. The Local Traffic Facilities Development Impact Fee will fund the Street Improvements adjacent to the Affected Lots, which will directly benefit the Affected Lots. The Local Traffic Facilities Development Impact Fee will be imposed exclusively upon the Affected Lots. Thus, a reasonable relationship can be shown between the use of fee revenue and the type of development project that will pay the fee. (D) Burden relationship. The Street Improvements are required to be constructed for the Affected Lots in order to meet City standards. The need for a facility or improvement is based on a facility standard that represents the demand generated by new development for those facilities. For each facility category, demand is measured by a single CA\JR\07000.35502\10262762.1 4
facility standard that can be applied across land-use types to ensure a reasonable relationship to the type of development. For the Local Traffic Facilities Development Impact Fee, improvement cost standards are calculated based on linear feet of local street frontage for new development. (E) Proportionality. There is a reasonable relationship between the amount of the Local Traffic Facilities Development Impact Fee and the cost of the Street Improvements attributable to the Affected Lots because the fee is based on the local street frontage of each Affected Lot. The length of the street frontage of a particular lot reflects the demand for the Street Improvements. Thus, the Local Traffic Facilities Development Impact Fee ensures a reasonable relationship between new development on the Affected Lots and the cost of the Street Improvements attributable to each lot.
SECTION 4. Adoption of Development Impact Fee. Based upon the methodology set forth in the Fee Study adopted by the City Council at the June 17, 2020, public hearing, the City Council hereby adopts the Local Traffic Facilities Development Impact Fee in the following amount:
Local Traffic Facilities Development Impact Fee
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Total Fee per linear foot $ 288.47
Fee for lot with 25’ frontage $ 7,212
Fee for lot with 50’ frontage $ 14,424
Fee for lot with 56.39’ frontage $ 16,267
Fee for lot with 57.61’ frontage $ 16,619
Fee for lot with 161.71’ frontage $ 46,648
Fee for lot with 185’ frontage $ 53,367
Fee for lot with 230’ frontage $ 66,348
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SECTION 5. Collection of Development Impact Fee. For Affected Lots that remain to be developed, the Local Traffic Facilities Development Impact Fee will be imposed and collected prior to issuance of a building permit. For Affected Lots that are encumbered with a public improvement lien in favor of the City, the Local Traffic Facilities Development Impact Fee will be imposed and collected at such time that the City sends a demand request to the thencurrent record owner of the Affected Lot, as permitted by the terms of the public improvement lien or at such time that the record owner of the Affected Lot desires to pay off the lien.
SECTION 6. Release of Liens. The City Manager is hereby authorized to release any Public Improvement Lien related to a Lien Agreement to Secure Construction of Public Improvements recorded against an Affected Lot upon payment of the Local Traffic Facilities Development Impact Fee for that lot. The City Manager, or his designee, is hereby authorized to execute and record any releases or other documents that are consistent with or in furtherance of the City Council’s actions hereunder.
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SECTION 7. Effective Date. The Mayor shall sign this Resolution, and the City Clerk shall attest thereto, and this Resolution shall take effect and be in force sixty (60) days after its adoption.
PASSED, APPROVED, AND ADOPTED this 6th day of April 2022. ______________________________________
Mayor of the City of Corona, California
ATTEST:
___________________________________
City Clerk of the City of Corona, California
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CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 6th day of April, 2022 by the following vote of the Council:
AYES:
NOES:
ABSENT:
ABSTAINED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 6th day of April, 2022. ___________________________________
City Clerk of the City of Corona, California
(SEAL)
CA\JR\07000.35502\10262762.1
7 EXHIBIT “A”
LOCAL TRAFFIC FACILITIES DEVELOPMENT IMPACT FEE STUDY
[SEE ATTACHED FOURTEEN (15) PAGES]
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8 EXHIBIT “B”
MAP AND LIST OF AFFECTED LOTS
[SEE ATTACHED 1 PAGE]