Council discusses developer responsibility, impact fees after Plaza Drive repaving decision

Montebello councilmembers on Tuesday urged staff to examine tools that would require private developers to pay for improvements to adjacent streets after the city covered repaving on Plaza Drive near a large housing project.

Mayor Pro Tem Tamayo and others raised the example of Metro Heights, a 200-unit development, saying heavy construction traffic has damaged nearby streets and that developers should bear more responsibility for adjacent improvements. Councilmembers noted that the Plaza Drive repaving was funded with Proposition C funds rather than the general fund, but argued the expenditure reduced funding available for other priorities.

Assistant staff and the city manager said the repaving predated the current administration and the agreements were vested; staff cannot recoup costs for that project now. Director of Finance/Community Development staff said the city currently charges several impact fees — a residential development tax per unit, parkland fees and art-in-public-places fees — and that the city is conducting a fee-study. The consulting group will review how Montebello’s fees compare to neighboring cities and recommend changes to ensure future projects contribute appropriately to off-site infrastructure costs.

Councilmember Roberto urged adding requirements during project review so developers undertake improvements to adjacent streets or pay fees that reflect those impacts. Staff said they have upcoming meetings with the fee-study consultant and will bring options to council, but also warned that changing assessment or fee structures can require legal processes and stakeholder engagement.

The council approved the underlying consent item that funded the work in question, and members asked staff to return with options to strengthen impact-fee collection and project conditions so future developments bear a larger share of off‑site improvement costs.