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Seal Beach updates transportation impact fee after nexus study; council adopts ordinance

Seal Beach City Council · February 24, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Council adopted an updated transportation development impact fee after hearing a nexus study by Iteris that identifies roughly $2 million of transportation improvements and forecasts about 7,165 new daily trips; fees are calculated per land use and the fee schedule was approved 5-0.

The Seal Beach City Council voted unanimously on Feb. 23 to adopt an updated transportation development impact fee based on a nexus study presented by Iteris. City staff and consultant Josh McNeil described the methodology, which translates a total cost of identified transportation improvements into a cost-per-trip and then into a fee per land-use square foot.

Josh McNeil said the study analyzed 23 intersections, incorporated RHNA housing growth and Orange County Transportation Agency modeling, and identified roughly $2 million in improvements apportioned as fair-share costs to future development. The forecast used in the study estimated about 7,165 new daily trips distributed across the city. The resulting fee schedule converts prior unit-based fees to a square-foot basis (for example, a multifamily rate of approximately $1.58 per livable square foot was discussed).

Councilmembers asked how regional growth and neighboring-city development were treated, whether short-term rentals and ADUs are subject to the fee, and how often the nexus must be updated. Staff and the city attorney clarified that the fee can only lawfully be charged for new development within the city; ADUs under the statutory size exemption and certain state-limited categories are treated according to state law; state rules require periodic nexus updates (at least every eight years). The code language in place requires new residential development to pay the fee; staff noted short-term rentals are not categorically exempt if they involve new construction.

Why it matters: The fee will be imposed at permit and is intended to direct growth’s proportionate share of costs to transportation improvements across Seal Beach. Council members and members of the public raised concerns that regional traffic and major corridor congestion (405 spillover) may impose burdens on Seal Beach roads not captured in a city-only fee, and that fees add to development costs.

Next steps: The adopted fee schedule will be applied at building/permitting for new development; staff noted the nexus must be revisited periodically under state law and will be administered through the city’s permitting process.

Quote: "It's basically the cost per trip," said Josh McNeil of Iteris, explaining the methodology.