TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
title
Update to the Transportation System Improvement Program fee nexus study.
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2. SUMMARY
The Transportation System Improvement Fee was modernized and adopted by City Council in 2020, resulting in a fee program that was more sustainable, flexible, and fair. A fee nexus study was developed to support those recently approved changes. This minor update amends information in the project listing contained in that nexus study, while keeping the fee structure and amounts unchanged.
3. RECOMMENDED ACTION
recommendation
Approve the updated nexus study.
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4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b. Provide and maintain infrastructure necessary to ensure the safety of the public
Goal 2: Be a fiscally healthy community
b. Analyze future fiscal needs and potential revenue opportunities
6. DISCUSSION AND BACKGROUND
The City has been assessing a Transportation System Improvement Program (TSIP) fee on new development for many years. Considered a mitigation fee under the California Government Code, TSIP effectively provides a mechanism for development to pay its fair share toward additional transportation infrastructure needs. Over the years, TSIP has undergone major updates on several occasions, most recently in 2020 to address some limitations with the previous fee program.
The 2020 fee update accomplished several key goals, including (1) consolidating the city into a single citywide fee area; (2) establishing a fee level that would meet future infrastructure needs without overburdening development; (3) building in an escalation factor that allows the fee to keep pace with construction costs, and (4) developing a more comprehensive list of projects that can be funded through the TSIP.
Chapter 15.41 of the Orange Municipal Code requires that the TSIP be revie...
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