City Council

4. PUBLIC MEETING: RECOMMENDED TRAFFIC REDUCTION AND TRANSPORTATION IMPROVEMENT FEE (Transportation Dept.) Recommendation: It is recommended that the City Council: (1) Find that the actions proposed in the agenda report are statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15273 (Rates, Tolls, Fares, and Charges); and (2) Subsequent to this Public Meeting and after conducting a public hearing on October 27, 2025, conduct first reading of an Ordinance Amending Title 4, Chapter 4.19, Sections 4.19.020, 4.19.040, 4.19.050, and 4.19.060, to Update the Traffic Reduction and Transportation Improvement Fee for Existing Land Use Categories and to add New Land Use Categories to the Fee Structure; and adopt the Recommended Traffic Reduction and Transportation Improvement Fee Update in the Schedule of Taxes, Fees, and Charges. City Council Decision and Need for Public Hearing: Department of Transportation (DOT) staff presented the methodology and findings of the nexus study, as well as staff recommendations to the Municipal Services Committee (MSC) on July 8, 2025. The Committee approved the staff recommendation with an amendment that either no fees be assessed for Accessory Dwelling Units (ADU) (because the fees imposed would be de minimis) or that staff provide an alternative recommendation to City Council for ADU fees. Staff revised the recommendations accordingly, to exempt ADUs to 900 square feet or less, and to waive the Traffic Reduction and Transportation Improvement Fee (TR/TIF) for ADUs governed by a Housing Agreement. Staff presented the revised recommendations at the City Council meeting on July 14, 2025, and the Council approved the recommendations. California Government Code Section 54954.6 states that before adopting any new or increased general tax assessment, the City Council must conduct at least one public meeting before the public hearing. While the TR/TIF rates 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, staff is presenting the TR/TIF update before the City Council on October 20, 2025. Staff will then plan to open and close the public hearing on October 27, 2025, and formally adopt the TR/TIF update through an ordinance. The notice of public meeting for this item was published in the Pasadena Press on September 15, September 22, and September 29 of 2025. Recommendation of the Transportation Advisory: DOT staff presented the methodology and findings of the nexus study, as well as staff recommendations, to the Transportation Advisory Commission (TAC) on March 27, 2025 and at a special meeting on April 14, 2025. The TAC discussed the addition of the new proposed land use categories and whether this may encourage or discourage the development of certain types of land uses in the City. The TAC approved the following motion: Support the fees as recommended, and urge council to consider if the reallocation of the fee categories may provide better outcomes on future development.