City Council

12.\nRECOMMENDED TRAFFIC REDUCTION AND TRANSPORTATION IMPROVEMENT FEE UPDATE (Transportation Dept.)\nRecommendation: It is recommended that the City Council:\n(1)\nFind that the actions proposed in the agenda report are statutorily exempt from the California Environmental Quality Act (CEQA)\npursuant to State CEQA Guidelines Section 15273 (Rates, Tolls, Fares, and Charges);\n(2)\nOpen the public hearing on the recommended Traffic Reduction and Transportation Improvement Fee update;\n(3)\nClose the public hearing on the recommended Traffic Reduction and Transportation Improvement Fee update; and\n(4)\nAfter conducting a public hearing on October 27, 2025, conduct first reading on an Ordinance Amending Title 4, Chapter 4.19, Sections\n4.19.020, 4.19.040, 4.19.050, and 4.19.060, to Update the Traffic Reduction and\nTransportation Improvement Fee for Existing Land Use Categories and to add New Land Use Categories to the Fee Structure; and adopt the\nRecommended Traffic Reduction and Transportation Improvement Fee Update in the\nSchedule of Taxes, Fees, and Charges.\nCity Council Decision and Need for Public Hearing: Department of Transportation (DOT) staff presented the methodology and findings of\nthe nexus study, as well as staff recommendations to the Municipal Services\nCommittee (MSC) on July 8, 2025. The Committee approved the staff recommendation with an amendment that either no fees be assessed\nfor Accessory Dwelling Units (ADU) (because the fees imposed would be de minimis) or\nthat staff provide an alternative recommendation to City Council for ADU fees. Staff revised the recommendations accordingly, to exempt\nADUs to 900 square feet or less, and to waive the Traffic Reduction and Transportation\nImprovement Fee (TR/TIF) for ADUs governed by a Housing Agreement. Staff presented the revised recommendations at the City Council\nmeeting on July 14, 2025, and the Council approved the recommendations.\nCalifornia Government Code Section 54954.6 states that before adopting any new or increased general tax assessment, the City Council must\nconduct at least one public meeting before the public hearing. While the TR/TIF\nrates are decreasing for most land uses, the TR/TIF rate for one land use (medical office) is increasing compared to the current fee. As such,\nstaff presented the TR/TIF update before the City Council on October 20, 2025. Upon\nclosing the public hearing on October 27, 2025, City Council will formally adopt the TR/TIF update through an ordinance. The notice of public\nmeeting for this item was published in the Pasadena Press on September 15, September\n22, and September 29 of 2025.\nRecommendation of the Transportation Advisory Commission: DOT staff presented the methodology and findings of the nexus study, as\nwell as staff recommendations, to the Transportation Advisory Commission (TAC) on\nMarch 27, 2025 and at a special meeting on April 14, 2025. The TAC discussed the addition of the new proposed land use categories and\nwhether this may encourage or discourage the development of certain types of land uses in\nthe City. The TAC approved the following motion: Support the fees as recommended, and urge council to consider if the reallocation of the fee\ncategories may provide better outcomes on future development.\n(To be discussed and considered concurrently with Item No. 15)