Attachment 4 Staff PresentationTransportation Impact Fee Program
Town Council Meeting
May 2, 2023
1
Agenda
1
2
3
5
Background
Project List
Projected Development
Discussion and Feedback
2
Fee Calculation4
TRAFFIC IMPACT FEES
3
•1987 -AB 1600 –California Mitigation Fee Act is promulgated and Codified in California
Government Code Section 66000 –66008.
•1991 –Town of Los Gatos adopts first Traffic Impact Fee
•2014 –Year of most recent Los Gatos Nexus Study to set Traffic Impact Fee Rates (Resolutions
2014-017 and 2014-059)
•2020 / 2021 –Town Amends to Traffic Impact Policy to include VMT as metric for conducting
transportation analyses for CEQA and establishes standards to comply with SB 743 (Resolution
2020-45); Council directs staff to update Traffic Impact Fees to reflect use of VMT.
•2021 –State adopts AB 602 which requires: a) completion of a Nexus Study to support the fee
adoption; b) Updating the Nexus Study every 8 years; c) calculate the fees based on square
footage of the proposed development.Traffic Impact Fees are fees
imposed on specific development
projects to offset the cost of new
or additional public facilities
needed to serve the development.
Chapter Title Date
BACKGROUND
Scope of Current Study
Update Traffic Impact Program To:
•Update Fees to Reflect Current Project
Needs and Development Impacts
•Consider Implementation of VMT Fee
•Comply with Current California Codes To:
Complete Impact Fee Nexus Study
Calculate Fees Based on Square
Footage
A Word about Language
4
Traffic Impact Program (TIP): Describes the
Overall Program and Associated Council
Policy. The TIP includes Two Components:
Transportation
Improvement
Fee (TIF)
Vehicle Miles
Traveled
Reduction
Fee (VMT)
Expands
Transportation
Infrastructure
Decreases
Demand for
Driving
PROJECT LIST -SUMMARY
5
Transportation
Improvement Fee
Project Costs (2022$)
VMT Reducing
Projects (2022$)Total (2022$)
Total Project Costs $151,132,533 $40,523,441 $191,655,974
Estimated Funding from Other Source
(e.g., grants)$124,228,307 $24,721,584 $148,949,891
Unfunded Cost Allocated to TIP $26,904,227 $15,801,857 $42,706,083
PROJECTED DEVELOPMENT
6
•Determined Using Projected Development per General Plan
•Calculate the Traffic Demand of Each Land Use (from Institute for Transportation Engineers
Data) and Convert Increased Demand into Dwelling Unit Equivalent Rates
•Single Family Residential Demand is Set at 1.0; Other Land Uses Scale Up or Down from
Residential.
•DUE Rates are Applied to the Projected Development Amounts to Determine Total DUE’s that
would pay into the Fee Program. Total DUE = 2,021
Land Use
Dwelling Unit
Equivalent Rates
(DUE)
Single-Family (per dwelling unit)1.00
Multi-Family (per dwelling unit)0.71
Retail (per 1,000 square feet)1.40
Office (per 1,000 square feet)1.23
Industrial (per 1,000 square feet)0.58
FEE CALCULATION
7
Transportation
Improvements Fee
VMT Fee
Unfunded Cost Allocated to TIP (from
Project List)$26,904,227 $15,801,857
Less Existing Mitigation Fee Fund Balance
(as of Fall 2022; will be updated prior to
final fee adoption)
($1,319,656)($775,084)
Total Unfunded Cost Used in Calculations $25,584,570 $15,026,773
Net DUE’s (from General Plan Land Use
and Trip Generation Estimates)2,021 2,021
Cost per DUE (Maximum Fee)$ 12,661 $7,437
FEE CALCULATION –PER LAND USE
8
Land Use / Unit Basis of Fee DUE Rate VMT Fee
Transportation
Improvement
Fee
Total
Maximum
Fee Per
Unit
Single-Family / per Dwelling
Unit 1.00 $7,437 $12,661 $20,098
Multi-Family / per Dwelling
Unit 0.71 $5,315 $9,050 $14,365
Retail / per 1,000 square feet 1.40 $10,374 $17,663 $28,037
Office / per 1,000 square feet 1.23 $9,141 $15,564 $24,706
Industrial / per 1,000 square
feet 0.58 $4,288 $7,300 $11,588
Note: Residential Fee is converted to per square foot based on average unit size of 1,671 square feet
for single family unit and 884 square feet per unit for multi-family. See memo Table 5.
EXISTING VERSUS PROPOSED FEES
9
Project
Calculated Fees to
be Paid Under
Existing Fee
Program1
Proposed Fee
Accessory Dwelling Unit $0 $0
New Single-Family Residence (hypothetical)
(3,000 SF) $9,581.60 $36,090
Multi-family Residential Project (16940
Roberts Rd, 3 condominiums –1,820, 1,797,
and 1,806 SF)$23,394.36 $88,069.52
Redevelopment (16212 Los Gatos Blvd),
existing commercial building, 2,312 SF) with
proposed retail/office at 6,185 SF
$251,720 $91,315
Retail (15600-15650 Los Gatos Blvd, Whole
Foods) 40,190 SF Retail $2,129,936 $1,126,807
Note: Existing fee is $1,015 per Average Daily Trip for all land use categories.
DISCUSSION ITEMS
10
What should the new rate be?
•Option 1: Use Calculated Fee
•Option 2: Reduce the VMT Fee Component
•Option 3: Reduce the Transportation
Improvement Fee Component
•Option 4: Reduce rates for certain land use
types only
Which Credits / Exemptions Should
Staff Consider?
•For all ADU’s?
•For Deed Restricted Affordable
Housing?
•Others?
Expectations for Outreach
•Regulated Community?
•Chamber of Commerce?
•Others?
TRANSPORTATION FEE POLICY OPTIONS
11
1.Council may adopt fees at any level up to the maximum fee presented tonight
2.Council may adopt different fee levels for each land use (e.g., 100% of proposed fees for commercial
and 75% of proposed fees for residential)
3.Reducing VMT Fee reduces mitigation effectiveness
4.Reducing either fee implies need for additional alternative funding sources to deliver project list
Keep in mind:
Option Pro Con
Adopt both fee components at proposed fee
levels
Maximizes funding for Town
capital projects
Higher fees than many
jurisdictions
Adopt VMT fee component at reduced fee
level
Reduces fee burden on
development
Lower fee revenue, less
VMT mitigation effectiveness
Adopt Transportation Improvement fee
component at reduced fee level
Reduces fee burden on
development Lower fee revenue
QUESTIONS?
12
DETAILED PROJECT LIST
13
Project Name Category Fee Program
Component
Total Project
Cost ($2022)
Estimated
Funding from
Other Sources
Unfunded Cost
Allocated to TIF
Calculation
State Route 17 Corridor Congestion Relief
Project
Safety and Capacity Improvements TI $110,820,000 $99,738,000 $11,082,000
Shannon Rd Widening and Safety
Improvements
Safety and Capacity Improvements TI $4,371,513 $1,471,513 $2,900,000
Union Avenue Widening and Sidewalks Complete Streets (Carryover)TI $4,226,672 $3,170,004 $1,056,668
Traffic Signal Modernization Program Traffic Signal TI $20,452,114 $12,452,114 $8,000,000
Highway 17 Bicycle & Pedestrian Overcrossing BPMP Priority Projects VMT $25,288,625 $18,966,469 $6,322,156
Kennedy Sidewalk & Bike Lanes BPMP Priority Projects VMT $1,402,065 $138,740 $1,263,325
Sidewalk Gap Filling Projects Other BPMP Projects -New
Facilities
VMT $600,000 0 $600,000
New and Expanded Bicycle and Pedestrian
Facilities (Non-Priority Projects)
Other BPMP Projects -New
Facilities
VMT $2,000,000 0 $2,000,000
Los Gatos Almaden Road Complete Streets
Improvements
Complete Streets (Carryover)TI $4,226,672 $3,170,004 $1,056,668
Los Gatos Boulevard Multimodal Widening Complete Streets (Carryover)TI $5,635,562 $4,226,672 $1,408,891
Parking Program Implementation Lighting and Signage TI $400,000 0 $400,000
Bicycle and Pedestrian Improvements
Program -Safety Improvements
Other BPMP Projects -Bicyclist
and Pedestrian Safety
TI $1,000,000 0 $1,000,000
Priority Projects from Bicycle and Pedestrian
Master Plan
BPMP Priority Projects VMT $11,232,751 $5,616,375 $5,616,375
TOTALS $191,655,974 $148,949,891 $42,706,083
COMPARISON OF PROPOSED FEE TO OTHER COMMUNITIES
14
City or Jurisdiction &
Update Year
Single-Family ($ per Dwelling
Unit, unless indicated)
Multi-Family ($ per
Dwelling Unit, unless
indicated)
Office ($ per 1,000 square
feet (KSF))
General Retail (unless
indicated)
($ per KSF)
Los Gatos (Current)$9,571 $6,841 $11,000 $10,045
Los Gatos (Proposed TIP)$20,098 $14,365 $24,706 $28,037
Menlo Park (2022)$18,845.593 $6,351.83 $21,880 $12,760
San Mateo (2022)$6,867.99 $3,468.58 $8,366.76 $27,735.48
San Carlos (2022)$7,243 $4,097 $8,413 $27,874
Los Altos (2022)$6,774.20 $4,159 $9,993.93 $12,408.73
Redwood City (2022)Non-Downtown: $1,617
Downtown: $1,212
Non-Downtown: $992
Downtown: $744
Non-Downtown: $2,380
Downtown: $1,790
Non-Downtown: $940
Downtown: $2,960
Palo Alto (2022)Citywide: $9,266 per net new PM peak hour trip
Charleston/Arastradero district: $460/KSF commercial or $1,599 per DUE
East Palo Alto (2022)$2,869.83 $2,024.79 $8,360 $8,360
Mountain View (2022)$5,364 $3,004 $5,720 $5,720
Cupertino (2022)$6,797 $4,215 $19,150 $10,940
Gilroy (2022)“Low-Density” $13,012 “High-Density” $10,548 Low Traffic Commercial: $14,397
High Traffic Commercial: $29,082
Morgan Hill (2022)$3,585 >1,200SF: $2,222
<1,200 SF: $1,399 $3,585 / Peak Hour Traffic
City of Santa Clara (2022)$1,391.16 $618.30 $1,610 Retail elements >50KSF:
$5,350
Sunnyvale (2023)Special planning zone: Lawrence Station Area Plan
$1,472/Residential Unit, applying after 2,323 residential units have been built or approved in the plan area.
Chapter Title Date
Why
How TIP supports the plans and policies we care about
Plans for Safety and Reduced Congestion
•Mobility Element of General Plan
•MOB-1: Reduce VMT and manage vehicle
congestion through a complete streets network
•MOB-2: Provide continuous, safe, and efficient
bicycle and pedestrian facilities
•MOB-4: …transportation network with
infrastructure and design features that allow
safe and convenient travel for all users
•Bike Pedestrian Master Plan
•Highway 17 Bicycle and Pedestrian
Overcrossing
•Local Roadway Safety Plan
•Council Strategic Priorities 2013-2025
•Traffic/Transportation
•Capital Improvement Program
•Traffic Signal Modernization
Fee Program Policy Objectives
•Defensibility: meet all statutory requirements and be
able to withstand scrutiny with respect to methods,
analysis, and data inputs.
•Consistency: should be consistent with the General
Plan in terms of expected growth in land use,
assumed transportation infrastructure projects, and
findings on the aggregated VMT impacts.
•VMT Mitigation: Town wanted to use fee program as
one tool in environmental clearance process for new
development
•Funding Efficiency: Town has ambitious program of
planned projects of widely varying types-mostly
bike/ped and safety but also traffic signal system and
highway capacity (SR-17)
•Maintain reasonable administrative burden 15