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16 Attachment 1 - Final Nexus Study DRAFTTRANSPORTATION IMPACT FEE NEXUS REPORT NOVEMBER 2023 DRAFT PREPARED FOR: TOWN OF LOS GATOS ATTACHMENT 1 TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 2 PREPARED FOR TOWN OF LOS GATOS PREPARED BY DKS ASSOCIATES IN COORDINATION WITH URBAN ECONOMICS AND RINCON TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 3 TABLE OF CONTENTS INTRODUCTION AND BACKGROUND .................................................................................................................... 5 SUMMARY OF FINDINGS ......................................................................................... 5 EXISTING AND FORECASTED LAND USE .............................................................................................................. 6 TRANSPORTATION DEMAND FACTORS ................................................................................................................. 6 TRANSPORTATION IMPROVEMENTS .................................................................................................................. 10 TOWN-WIDE MULTIMODAL TRANSPORTATION INFRASTRUCTURE .................................................................... 12 INVENTORY OF TOWN WIDE TRANSPORTATION INFRASTRUCTURE .............................. 12 EXISTING LEVEL OF INVESTMENT AND MAXIMUM JUSTIFIABLE FEE FOR THE TRANSPORTATION IMPACT FEE .............................................................................. 12 TRANSPORTATION IMPROVEMENTS AND COST PER DUE ............................................. 15 FEE SCHEDULE ................................................................................................................................................... 16 RECOMMENDED FEE SCHEDULE .............................................................................. 16 Residential Fees per Square Foot ...................................................................................................................... 17 Fees for Specialized Land Uses ......................................................................................................................... 18 COMPARABLE FEE RATES ...................................................................................... 18 PROJECTS SUBJECT TO THE FEE PROGRAM ............................................................... 20 REVENUE PROJECTIONS AND USE ........................................................................... 20 APPENDIX ......................................................................................................................................................... 22 SECTION 1. PROJECT LIST .................................................................................... 24 SECTION 2. UNIT COST DETAIL ............................................................................. 26 TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 4 LIST OF FIGURES FIGURE 1: MAP OF TOWN-WIDE INFRASTRUCTURE ....................................................... 14 FIGURE 2: TIF PROJECTS ...................................................................................... 25 LIST OF TABLES TABLE 1: EXISTING AND FORECASTED DEVELOPMENT ..................................................... 7 TABLE 2: DWELLING UNIT EQUIVALENT (DUE) RATES ..................................................... 8 TABLE 3: TRANSPORTATION DEMAND BY DWELLING UNIT EQUIVALENTS (DUES) .................... 9 TABLE 4: TRANSPORTATION IMPROVEMENT PROJECTS ................................................... 11 TABLE 5: TRANSPORTATION INFRASTRUCTURE UNIT COSTS (2022 $) ................................ 13 TABLE 6: EXISTING FACILITY STANDARD & LEVEL OF INVESTMENT .................................. 15 TABLE 7: TRANSPORTATION IMPROVEMENT COST PER DWELLING UNIT EQUIVALENT ............. 16 TABLE 8: RECOMMENDED FEE SCHEDULE ................................................................... 17 TABLE 9: CALCULATION OF RESIDENTIAL FEES PER SQUARE FOOT ................................... 17 TABLE 10: TRANSPORTATION IMPACT FEES IN COMPARABLE JURISDICTIONS ...................... 19 TABLE 11: MAXIMUM REVENUE PROJECTION ............................................................... 21 TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 5 INTRODUCTION AND BACKGROUND This report documents the update of the Transportation Impact Fee (TIF) for the Town of Los Gatos. The updated fee program will fund all eligible transportation improvements based on a reasonable relationship to transportation demand impacts from new development. The TIF will fund expansion of the Town-wide multimodal transportation infrastructure. This report presents the results of the fee calculations along with supporting documentation for the nexus study prepared by DKS Associates with the assistance of Urban Economics and Rincon Associates. SUMMARY OF FINDINGS California local agencies may adopt impact fees under authority granted by the Mitigation Fee Act (the Act), contained in Sections 66000 to 66025 of the California Government Code. This report presents the key findings required by the act for adopting or increasing a development fee with respect to the following reasonable relationships1: Project effects– There must be a reasonable relationship established between new development and the need for public facilities. • This finding is based on the need to supply adequate transportation network improvements to offset transportation demand associated with new development. Benefit – There must be a reasonable relationship between new development and the use of fee revenue for public facilities to accommodate that development. • This finding is based on the use of fee revenue for expansions to the Town-wide multimodal transportation network. Proportionality – There must be a reasonable relationship between the amount of the fee and the portion of public facilities cost associated with new development. • This finding is based on the cost of planned improvements to Town-wide multimodal transportation infrastructure per unit of new development and ensuring that this cost per unit is not greater than the level of investment in existing infrastructure for existing development. In addition to the above findings, the Act also requires findings regarding the purpose of the fee and a description of the public facilities to be funded by the fee: • The purpose of the fee is to expand the Town-wide multimodal transportation network to accommodate increased demand from new development. The multimodal improvements to be funded by the fee are described under “Transportation Improvements”. 1 California Government Code, section 66001(a)(3), 66001(a)(4), and 66001(b) TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 6 The proposed TIF also meets newer statutory requirements brought about by Assembly Bill 602, including preparation of a nexus study and calculation of fees for residential developments proportionate to square footage. The following additional findings are made: a) The existing level of service is the historical level of investment made per unit of development to fund the Town’s multimodal transportation network. This level of investment will not be exceeded by the proposed fee. b) The purpose of the fee to expand the Town-wide multimodal transportation network to accommodate increased demand from new development. c) The funds collected by the proposed fee will be used to deliver the projects described under “Transportation Improvements”. d) The reasonable relationship between the fee’s use and the type of development project is derived from the relative levels of transportation demand associated with each land use category. e) The need for public facilities to be funded by the proposed fee has been documented by the adopted planning documents that serve as the source for the transportation improvements list. EXISTING AND FORECASTED LAND USE The proposed fee program is based on the demand for transportation infrastructure associated with new development. This section documents the additional transportation demand from new development in terms of “dwelling unit equivalents” (DUEs), a measure of transportation demand across both residential and nonresidential land use categories that is based on key travel characteristics. Table 1 summarizes the existing and forecasted growth by type of land use. The forecasted growth is consistent with that assumed for the Town’s most recent General Plan and Housing Element. TRANSPORTATION DEMAND FACTORS Scaling factors based on relative levels of transportation demand are applied to the different types of land use to create a common land use unit. These common units or Dwelling Unit Equivalents (DUEs) are equivalent to the transportation demand generated by one single family residential unit. Once basic fee levels are calculated, the DUE rates are used to appropriately scale the fee across different land use categories. TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 7 TABLE 1: EXISTING AND FORECASTED DEVELOPMENT a Residential based on CA Dept. of Finance. Nonresidential based on job estimate in General Plan Background Report multiplied by employment density factors derived from trip generation data published by the Institute for Transportation Engineers (471, 307, and 637 sq. ft. per job for retail/commercial, office, and industrial, respectively). Office land use includes institutional uses. b Nonresidential includes intensification of development on existing developed parcels and deducts loss of 19,860 square feet of existing nonresidential development (assumed to be retail/commercial) due to redevelopment. c Existing (2021) based on detached and attached single family. Growth (2022-2040) based on low and medium density residential land use categories. d Existing (2021) includes all multi-family dwellings plus mobile homes. Growth (2022-2040) includes high density residential land use and units in mixed use and nonresidential land uses. e Accessory Dwelling Units (ADUs) of less than 750 square feet are exempt from impact fees. The number of ADUs that would be subject to the fee is estimated based on 500 ADUs, per the Housing Element, and analysis of permit data from the last 5 years showing that about 44% of ADUs have been 750 square feet or larger. Sources: State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties, and the State — January 1, 2021-2022. Sacramento, California, May 2022; Institute for Transportation Engineers (ITE), Trip Generation Handbook, 11th Edition, Sept. 2021; Town of Los Gatos 2040 General Plan Background Report, March 2019, Table 2.3-14, p. 2-34; Town of Los Gatos 2040 General Plan, June 2022, Table 3-1, p. 3-4; Town of Los Gatos, Resi and ADU SF Final.xlsx (September 2023). LAND USE EXISTING (2021) a GROWTH (2022-2040) b TOTAL 2040 RESIDENTIAL (DWELLING UNITS) SINGLE FAMILY c 10,100 113 10,213 MULTI-FAMILY d 3,792 2,072 5,864 TOTAL 13,892 2,185 16,077 ADD ESTIMATED ACCESSORY DWELLING UNITS (ADUs) 750 SF OR LARGER SINGLE-FAMILY UNITS 113 NON-EXEMPT ADUs e 220 SINGLE-FAMILY FEE- PAYING UNITS 333 NONRESIDENTIAL (BUILDING SQUARE FEET) RETAIL/COMMERCIAL 2,633,475 367,860 3,001,335 OFFICE 3,987,091 146,548 4,133,639 INDUSTRIAL 1,061,766 157,440 1,219,206 TOTAL 7,682,332 671,848 8,354,180 TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 8 TABLE 2: DWELLING UNIT EQUIVALENT (DUE) RATES LAND USE ITE LAND USE (CODE) AVG. WEEKDAY TRIP RATE PERCENT NEW TRIPS A TRIP LENGTH FACTOR B DEMAND FACTOR B DWELLING UNIT EQUIVALENT SINGLE-FAMILY (PER DWELLING UNIT) Single Family Homes (210) 9.43 100 7.9 74.50 1.00 MULTI-FAMILY (PER DWELLING UNIT) Multifamily Mid-rise (221) 6.74 100 7.9 53.25 0.71 RETAIL (PER 1,000 SQUARE FEET) Shopping Center (820) 37.01 78 3.6 103.92 1.40 OFFICE (PER 1,000 SQUARE FEET) General Office (710) 10.84 96 8.8 91.58 1.23 INDUSTRIAL (PER 1,000 SQUARE FEET) General Light Industrial (110) 4.87 98 9.0 42.95 0.58 a Includes diverted trips. b Trip length and VMT factors provide a relative measure of transportation demand among land uses, and a reasonable method for allocating improvement costs across land use categories to calculate the impact fee. Based on factors commonly used in planning studies. Absolute values for Los Gatos may differ. Sources: Institute for Transportation Engineers (ITE), Trip Generation, 11th Edition; San Diego Association of Governments (SANDAG), Brief Guide of Vehicular Trip Generation Rates, April 2002. The DUE rates and travel demand factors are calculated using the daily trip rates from the 11th Edition of the Trip Generation Manual, published by the Institute of Transportation Engineers (ITE). The details of this calculation are shown in Table 2. The DUE rates are applied to the quantities of land use growth shown in Table 1 to arrive at growth in DUEs as shown in Table 3. TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 9 TABLE 3: TRANSPORTATION DEMAND BY DWELLING UNIT EQUIVALENTS (DUEs) Sources: Table 1 and Table 2. LAND USE EXISTING DUEs (2021) GROWTH DUEs (2023-2040) TOTAL DUEs (2040) RESIDENTIAL SINGLE FAMILY 10,100 333 10,433 MULTI-FAMILY 2,710 1,481 4,191 SUBTOTAL 12,810 1,814 14,624 NONRESIDENTIAL RETAIL/COMMERCIAL 3,674 513 4,187 OFFICE 4,901 180 5,081 INDUSTRIAL 612 91 703 SUBTOTAL 9,187 784 9,971 TOTAL 21,997 2,598 24,595 SHARE 90% 10% 100% TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 10 TRANSPORTATION IMPROVEMENTS This section summarizes the projects needed to expand the transportation network to accommodate growth. A detailed list of projects may be found in the Appendix, Section 1. Table 4 summarizes the improvements identified to expand the Town-wide circulation network to maintain the Town’s historical level of investment. Note that project cost estimates have been escalated where appropriate and historical levels of supplemental funding have been assumed to derive the costs allocated to the fee calculations. There are seven categories of projects in this list: 1. Bicycle and Pedestrian Plan Priority Projects: These projects are selected from the Bicycle and Pedestrian Master Plan of the Town of Los Gatos (Connect Los Gatos, 2020). 2. Complete Streets projects carried over from the existing traffic impact fee project list. The funding of these projects continues to be a high priority for the Town and including these projects ensures that the impact fees previously collected will be used to deliver projects from the previously planned list. 3. Lighting and Signage projects will be drawn from needs identified in the Town’s Downtown Parking Roadmap. The costs are based on delivery of about $50,000 per year in improvements. 4. Bicyclist and Pedestrian Safety Projects identified in Connect Los Gatos. 5. New bicycle and pedestrian facilities identified in Connect Los Gatos. 6. Safety and Capacity Improvements are largely associated with the Town’s estimated local match contribution to the State Route 17 (SR-17) Corridor Congestion Relief Project – Among other objectives, this project will reduce cut-through traffic through the Town of Los Gatos and features improvements to the ramp intersections as well as the freeway mainline. While funding for final design and construction has not been finalized, it is expected to include a combination of Measure B, local funds, and other funds. Also included in this category is the Shannon Road widening and safety improvements project. 7. Upgrades to the Town’s traffic signal system – This category of projects includes signal upgrades including but not limited to; signal synchronization; signal interconnects; signal head replacements and fiber optic lines. In the past, the Town has sought and received state and federal funding for this type of project and an assumption of continued grant funding has been made for calculating costs allocated to the TIF program. TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 11 TABLE 4: TRANSPORTATION IMPROVEMENT PROJECTS CATEGORY UNFUNDED CAPITAL COSTS ($2022) BPMP PRIORITY PROJECTS $13,201,857 COMPLETE STREETS (CARRYOVER) $3,522,227 LIGHTING AND SIGNAGE $400,000 OTHER BPMP PROJECTS - BICYCLIST AND PEDESTRIAN SAFETY $1,000,000 OTHER BPMP PROJECTS - NEW FACILITIES $2,600,000 SAFETY AND CAPACITY IMPROVEMENTS $13,382,000 TRAFFIC SIGNAL IMPROVEMENTS $8,000,000 SUBTOTAL $42,106,083 CURRENT TIF FUND BALANCE a $405,570 ALLOCATED COST FOR FEE CALCULATION $41,700,514 a Fund balance as of November 1, 2023. Source: Connect Los Gatos, Town of Los Gatos TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 12 TOWN-WIDE MULTIMODAL TRANSPORTATION INFRASTRUCTURE This section presents the Town’s standard for multimodal transportation infrastructure based on the existing level of investment in that infrastructure. This standard is used to calculate the Transportation Impact Fee (TIF). INVENTORY OF TOWN WIDE TRANSPORTATION INFRASTRUCTURE The investment that the Town has made to date in its transportation network depends upon the multimodal transportation network that connects residential neighborhoods, retail and employment centers, and other destinations across and outside the Town. Streets and other transportation infrastructure that only provide access to individual residential properties and do not provide connectivity between neighborhoods are excluded from this inventory. The Town-wide multimodal transportation infrastructure was quantified using street centerline Geographic Information System (GIS) data, the map of streets by classification published in the Town’s General Plan 2040, and online aerial photographs. The transportation network is defined as arterials and collectors that provide connectivity among different neighborhoods in Los Gatos and to regional destinations. This network includes the entire roadway curb-to-curb (vehicle travel lanes, bicycle lanes, and on street parking), as well as adjacent sidewalks, medians, traffic signals, and off-street paths. As mentioned above, the network excludes local streets used primarily for access to individual properties within specific neighborhoods. Figure 1 shows a map of the Town’s existing citywide transportation network that is eligible for improvement or expansion projects funded by the proposed Transportation Impact Fee. Note that in addition to the collector streets shown in the map, there are some additional facilities that provide access to school sites2. These facilities function as collectors, although not formally classified as such, and would be eligible for TIF funded improvements. EXISTING LEVEL OF INVESTMENT AND MAXIMUM JUSTIFIABLE FEE FOR THE TRANSPORTATION IMPACT FEE Total unit costs for transportation infrastructure are provided in Table 5. Additional details on the unit costs may be found in the Appendix, Section 2. Quantities for each component of the inventory and estimated historical level of investment per DUE are summarized in Table 6. 2 These facilities include Fischer Avenue and Roberts Road. TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 13 TABLE 5: TRANSPORTATION INFRASTRUCTURE UNIT COSTS (2022 $) a) Construction costs include temporary traffic control where applicable. b) Percent of total before contingency. Includes 20% for project design, 15% for construction engineering, and 5% for project management. c) Construction Cost*(1+Design Management%) * (1+ Contingency%). d) Cost of street lighting, water pollution prevention, street furniture and drainage not included in unit cost Source: DKS Associates INFRASTRUCTURE TYPE UNIT CONSTRUCTION COST a DESIGN & MANAGEMENT COST b CONTINGENCY TOTAL UNIT COST c ROADWAY Square Foot $56 40% 20% $94 SIDEWALK Square Foot $38 40% 20% $64 CURB & GUTTER Linear Foot $127 40% 20% $214 MEDIAN Square Foot $50 40% 20% $85 BICYCLE PATH Square Foot $38 40% 20% $65 BICYCLE LANE Linear Foot $8 40% 20% $14 TRAFFIC SIGNAL Intersection $654,000 40% 20% $1,098,720 TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 14 FIGURE 1: MAP OF TOWN-WIDE INFRASTRUCTURE TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 15 TABLE 6: EXISTING FACILITY STANDARD & LEVEL OF INVESTMENT Note: All dollars in 2022 $. Source: Table 10. TRANSPORTATION IMPROVEMENTS AND COST PER DUE The required projects identified to maintain the existing level of investment to accommodate future growth are summarized in Table 4. A detailed listing of transportation improvements or projects is provided in the Appendix, Section 1. Dividing the cost of the transportation improvements by the expected growth in DUEs results in the cost per DUE or recommended fee level as shown in Table 7. INFRA- STRUCTURE TYPE INVENTORY EXISTING DWELLING UNITS EQUIVALENTS DUE EXISTING FACILITIES STANDARD UNITS PER DUE REPLACE- MENT COSTS PER UNIT EXISTING LEVEL OF INVESTMENT ($ PER DUE) ROADWAY 11,208,202 square feet 21,997 509.5 $94 $47,936 SIDEWALK 1,481,236 square feet 21,997 67.3 $64 $4,299 CURB & GUTTER 311,245 linear feet 21,997 14.1 $214 $3,024 MEDIAN 88,386 square feet 21,997 4.0 $85 $340 BICYCLE PATH 244,859 square feet 21,997 11.1 $65 $718 BICYCLE LANE 65,719 linear feet 21,997 3.0 $14 $42 TRAFFIC SIGNAL 31 intersections 21,997 0.001 $1,098,720 $1,548 Total $57,907 TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 16 TABLE 7: TRANSPORTATION IMPROVEMENT COST PER DWELLING UNIT EQUIVALENT ALLOCATED TRANSPORTATION IMPROVEMENT COSTS $41,700,514 GROWTH (2022-2040) IN DWELLING UNIT EQUIVALENTS (DUES) 2,598 COST PER DUE (TRANSPORTATION IMPROVEMENT FEE PER DUE) $16,051 Sources: Table 5 and Table 3. FEE SCHEDULE This section summarizes the Town’s planned transportation improvements along with associated costs to demonstrate a reasonable relationship between new development and the use of fee revenues to accommodate that development. The Town may adopt any fee level below the maximum justified fees, taking into account economic development policy, other policy considerations, and fee levels charged by comparable jurisdictions (see Table 11). The Town may also adopt fees with varying levels of discount by land use category based on reasonable policy considerations, such as more deeply discounting industrial fees to encourage industrial development as part of an economic development policy. The allocated cost of the transportation capital improvements list totals $41,700,514. The full list of projects and estimated costs is provided in the Appendix, Section 1. The estimated cost to build out the capital improvement program is summarized in Table 4. Only capital projects eligible for funding through the TIF program are listed. The estimated costs account for known funding from other sources, such as the countywide Measure B program. The included projects would improve, enhance, and/or expand the Town’s existing transportation system. The basic fees per DUE described in the preceding sections are scaled according to relative transportation demand rates to arrive at fee schedules by type of land use. The factors scaling the fee by transportation demand (DUE rates) have been calculated using daily trip generation rates, as explained under the section titled, “Transportation Demand Factors”. RECOMMENDED FEE SCHEDULE The recommended fee schedule shown in Table 8 is the cost per DUE to deliver the planned Transportation Improvement projects and is below the maximum justifiable fee (historical level of investment). TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 17 TABLE 8: RECOMMENDED FEE SCHEDULE LAND USE IMPROVEMENT COST PER DWELLING UNIT EQUIVALENT DWELLING UNIT EQUIVALENT PER UNIT FEE UNIT SINGLE-FAMILY RESIDENTIAL $16,051 1.00 $16,051 per dwelling unit MULTI-FAMILY RESIDENTIAL $16,051 0.71 $11,472 per dwelling unit RETAIL $16,051 1.40 $22,391 per 1,000 square feet OFFICE $16,051 1.23 $19,731 per 1,000 square feet INDUSTRIAL $16,051 0.58 $9,255 per 1,000 square feet Sources: Table 3 and Table 7 RESIDENTIAL FEES PER SQUARE FOOT Per AB 602, residential fees adopted after July 1, 2022, must be charged proportionally to the size of the dwelling unit. Fees per DUE are divided by the average size of single family and multifamily units to arrive at a fee per residential square foot. The average size of single family and multi family dwelling units is derived from the five years of building permit data in Los Gatos. Note that the square footage is based on the physical coverage of the living quarters of the residential unit (i.e., does not reflect yard, garage, or other areas of the property). The resulting residential fees per square foot are summarized in Table 9. TABLE 9: CALCULATION OF RESIDENTIAL FEES PER SQUARE FOOT a Includes ADUs of 750 or more square feet. Source: Town of Los Gatos. TOTAL TIF PROGRAM FEES AVERAGE SIZE (SQUARE FEET) TIF PROGRAM FEES PER SQUARE FOOT SINGLE FAMILY DWELLING UNITS a $16,051 2,632 $6.10 MULTI FAMILY DWELLING UNITS $11,472 1,649 $6.96 TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 18 FEES FOR SPECIALIZED LAND USES Fees for development projects that do not correspond to one of the given generic land use categories may be determined by multiplying the fee per single family dwelling unit by the appropriate DUE rate and the quantity of specialized land use. The DUE rate is calculated with the applicable average weekday trip generation rate using the following formula: DUE Rate = Average weekday trips per unit of specialized land use/ Average weekday trips per single family dwelling unit / The transportation impact fees are given by: Fee per single family dwelling unit * DUE rate * specialized land use quantity Example: Fees for self-storage project Average daily trip generation rates: Single family dwelling unit = 9.43 trips per dwelling unit (DUE) Mini warehouse or self-storage = 1.45 trips per thousand square feet (KSF) DUE Rate = 1.45/9.43 = 0.15 DUE/KSF Fee per KSF of mini warehouse = 0.15 DUE/KSF*$16,282/DUE = $2,407 per KSF COMPARABLE FEE RATES When adopting a fee level, one consideration is the level of fees charged by nearby jurisdictions as well as the current transportation impact fees being collected in Los Gatos. Table 10 shows the fees charged by several South Bay jurisdictions as well as the current fee level for Los Gatos. TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 19 TABLE 10: TRANSPORTATION IMPACT FEES IN COMPARABLE JURISDICTIONS a Based on $1,015 per daily trip. Sources: Menlo Park: Development guidelines City of Menlo Park, rates updated June 2022. San Mateo: San Mateo 2022-2023 Fee Schedule. San Carlos: City of San Carlos Development Impact Fees 2022-2023 rates (cost is assessed as $7.316*PM peak hour trips). Los Altos: City of Los Altos Proposed 2022-2023 Fees. Redwood City: Redwood City Development Fee Schedule (downtown area discounted fees not shown). Palo Alto: FY22 Impact Fee Information Sheet, $8,572.00 per net new PM peak hour trip, Charleston/Arastradero special zone discounted fees not shown. East Palo Alto: East Palo Alto Master Fee Schedule 2022, pm peak hour vehicle trip rate of $7,868.71 per trip, with internal trips percentage considered. Mountain View: Mountain View Development Fee Schedule 2022-2023, other low-trip-generating uses are charged at $3,100.00/am and pm peak-hour trip. Cupertino: City of Cupertino Engineering Fee Schedule 2022. Gilroy: City of Gilroy 2022 Impact Fees. Morgan Hill: City of Morgan Hill Fee Schedule, 2021. Santa Clara: Santa Clara Master Fee Schedule (rates shown apply for projects entitled after Oct 22, 2018). Implementation Policy and Revenue Projections JURISDICTION (UPDATE YEAR) SINGLE FAMILY RESIDENTIAL PER DU MULTIFAMILY RESIDENTIAL PER DU OFFICE (PER KSF) RETAIL (PER KSF) HOTEL (PER ROOM) MENLO PARK $18,845 $6,352 $21,880 $12,760 $11,422 SAN MATEO $6,868 $3,468 $8,367 $27,735 $4,368 SAN CARLOS $7,243 $4,097 $8,413 $27,874 $4,390 LOS ALTOS $6,774 $4,159 $9,994 $12,409 REDWOOD CITY $1,617 $992 $2,380 $940 $945 PALO ALTO Citywide: $9,266 per net new PM peak hour trip Charleston/Arastradero district: $460/KSF commercial or $1,599 per DUE EAST PALO ALTO $2,870 $2,025 $8,360 8,360 MOUNTAIN VIEW $5,364 $3,004 $5,720 5,720 $3,317 CUPERTINO $6,797 $4,215 $19,150 10,940 $3,278 GILROY “Low-Density” $13,012 “High-Density” $10,548 Low Traffic Commercial: 14,397 High Traffic Commercial: $29,082 MORGAN HILL $3,585 >1,200SF: $2222 <1,200: $1399 All remaining uses charged using $3,585/peak hour trip CITY OF SANTA CLARA $1,391 $618 $1,610 Retail elements >50KSF: $5,350 $843 CURRENT LOS GATOS FEES a $9,571 $6,841 $1,015 per daily trip PROPOSED LOS GATOS FEES $16,051 $11,472 $19,731 $22,391 TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 20 PROJECTS SUBJECT TO THE FEE PROGRAM The Town’s Transportation Impact Policy provides for the following: 1. Projects that are determined by the Town to generate one or more new net Average Daily Trips (ADT) are subject to the Policy (and would presumably pay into the TIF program). 2. Accessory Dwelling Units (ADUs) smaller than 750 square feet shall be exempted from the requirements of Transportation Analysis and the TIF program3. 3. The Town Council may exempt housing developments for extremely low, very-low, low-, and moderate-income residents (as defined by Town Ordinance, General Plan, or statute) from all or a portion of the traffic impact mitigation fee upon making a finding that the development provides a significant community benefit by meeting current needs for affordable housing. Any such exemptions will reduce the amount of revenue expected to be collected and require additional supplemental funding sources to fully deliver the project list. In addition, the Town’s TIF program will be subject to the requirements of California Government Code Section 66005.1, which requires a discounted fee rate reflecting lower automobile trip generation rates for qualifying housing developments. To qualify a development must be located within a half mile of a transit station (as defined in California Government Code Section 65460.1), include convenience retail uses a half mile of the housing, and limit parking spaces. Although the Town does not currently have a transit station meeting the statutory requirement, this statute may become applicable at some point in the future. REVENUE PROJECTIONS AND USE The amount of revenue that can be collected under the new TIF program will depend on the fee levels adopted by the Town as well as the expected growth over the planning horizon. Table 11 shows the estimated revenue to be collected by the updated TIF program assuming adoption of the recommended Transportation Improvement Fee. 3 Proposed change to current policy which exempts all ADUs. TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 21 TABLE 11: MAXIMUM REVENUE PROJECTION LAND USE TIF FEES PER UNIT EXPECTED GROWTH REVENUE ESTIMATE SINGLE FAMILY RESIDENTIAL $16,051 per dwelling unit 333 $5,344,918 MULTI-FAMILY RESIDENTIAL $11,472 per dwelling unit 2,072 $23,770,305 RETAIL $22,391 per 1,000 square feet 368 $8,236,767 OFFICE $19,731 per 1,000 square feet 147 $2,891,486 INDUSTRIAL $9,255 per 1,000 square feet 157 $1,457,037 Total $41,700,514 Sources: Table 1 and Table 8. APPENDIX TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 23 CONTENTS SECTION 1. PROJECT LIST SECTION 2. UNIT COST DETAIL TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 24 SECTION 1. PROJECT LIST Town of Los Gatos TIF Project ListIDProject Name Category Source DescriptionFee Program Component Cost Estimate ($2022) Estimated Funding from Other Sources Unfunded Cost Allocated to TIF Calculation1State Route 17 Corridor Congestion Relief Project 1Safety and Capacity ImprovementsSanta Clara VTA Measure B Projects Modify the SR 17/SR 9 interchange’s on- and off-ramps Implement advance transportation technology Install traffic signals control system, traveler information system, and ramp metersTI 110,820,000$ 99,738,000$ 10,482,000$ 2Shannon Rd Widening and Safety Improvements Safety and Capacity ImprovementsTown of Los Gatos Capital Improvement ProgramAdd shoulders and retaining wall between Santa Rosa Drive and Diduca Way.TI 4,371,513$ 1,471,513$ 2,900,000$ 3Union Avenue Widening and Sidewalks Complete Streets (Carryover) Carryover from previous TIF project listAdd sidewalks and bike lanes between Blossom Valley Dr to Lynne AveTI 4,226,672$ 3,170,004$ 1,056,668$ 4Traffic Signal Modernization Program Traffic SignalTown of Los Gatos Capital Improvement ProgramSmart Signals Project will modernize and upgrade the Town’s traffic signals/communications equipment to provide real‐time data for the advanced traffic management and adaptive traffic control systemsTI 20,452,114$ 12,452,114$ 8,000,000$ 5Highway 17 Bicycle & Pedestrian Overcrossing BPMP Priority Projects Bicycle and Pedestrian Master Plan Overcrossing of SR‐17 south of Blossom Hill RoadVMT 25,288,625$ 18,966,469$ 6,322,156$ 6Kennedy Sidewalk & Bike Lanes BPMP Priority Projects Kennedy RoadAdd sidewalks and Class II bicycle lanes from Los Gatos Bld to Englewood AveVMT 1,402,065$ 138,740$ $1,263,3257Sidewalk Gap Filling Projects Other BPMP Projects ‐ New Facilities Bicycle and Pedestrian Master PlanFill gaps in sidewalks, multiple locations on Town‐wide circulation networkVMT 600,000$ 600,000$ 8New and Expanded Bicycle and Pedestrian Facilities (Non Priority Projects) Other BPMP Projects ‐ New Facilities Bicycle and Pedestrian Master Plan Construct new bicycle lanes, cycle tracks and multiuse pathsVMT 2,000,000$ 2,000,000$ 9Los Gatos Almaden Road Complete Streets Improvements Complete Streets (Carryover) Carryover from previous TIF project listFill gaps in sidewalks between Peach Blossom Lane and Camino del CerroTI 4,226,672$ 3,170,004$ 1,056,668$ 10Los Gatos Boulevard Multimodal Widening Complete Streets (Carryover) Carryover from previous TIF project listAdd sidewalks and bicycle lanes between Samaritan Drive and Camino Del SolTI 5,635,562$ 4,226,672$ 1,408,891$ 11Parking Program Implementation Lighting and Signage Downtown Parking Roadmap Add lighting, signage, and other project elementsTI 400,000$ 400,000$ 12Bicyle and Pedestrian Improvements Program ‐Safety ImprovementsOther BPMP Projects ‐ Bicyclist and Pedestrian SafetyBicycle and Pedestrian Master Plan; Local Road Safety PlanHigh visibility crosswalks, midblock crossings, pedestrian beacons, and other project elements on Town‐wide circulation networkTI 1,000,000$ 1,000,000$ 13Priority Projects from Bicycle and Pedestrian Master Plan BPMP Priority Projects Bicycle and Pedestrian Master PlanWork towards implement priority projects from BPMP as feasibleVMT 11,232,751$ 5,616,375$ 5,616,375$ Notes:Total: 42,106,083$ 1) Unfunded cost for this project reduced by 2023 transfer of traffic impact fee funding to project account.11/14/2023 TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 25 FIGURE 2: TIF PROJECTS TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 26 SECTION 2. UNIT COST DETAIL # Infrastructure Type Unit Total Unit Cost1 Total Quantity Total Cost 1 Roadway Square Foot 94$ 11,208,202 1,054,467,624$ 2 Sidewalk Square Foot 64$ 1,481,236 94,562,121$ 3 Curb & Gutter Linear Foot 214$ 311,245 66,511,907$ 4 Median Square Foot 85$ 88,386 7,483,786$ 5 Bicycle Path Square Foot 65$ 244,859 15,796,361$ 6 Bicycle Lane* Linear Foot 14$ 65,719 927,422$ 7 Traffic Signal** Intersection 1,098,720$ 31 34,060,320$ Sum 1,273,809,540$ 1 See Unit Cost Table for detailed information Town of Los Gatos Impact Fee Transportation Infrastructure Costs (2022) P:\P\22\22046‐000 Los Gatos TIF Update\05 Analysis\03 Inventory\Los Gatos Transportation Impact Fee Unit Costs 11‐21‐2022 # Infrastructure Type Unit Construction Cost ($) Design & Management Cost1 Contingency Total Unit Cost2 1 Roadway3 Square Foot 56$ 40% 20% 94$ 2 Sidewalk Square Foot 38$ 40% 20% 64$ 3 Curb & Gutter Linear Foot 127$ 40% 20% 214$ 4 Median Square Foot 50$ 40% 20% 85$ 5 Bicycle Path Square Foot 38$ 40% 20% 65$ 6 Bicycle Lane Linear Foot 8$ 40% 20% 14$ 7 Traffic Signal Intersection 654,000$ 40% 20% 1,098,720$ 1 2 Construction Cost*(1+Design Management%)*(1+ Contingency%) 3 Cost of street lighting, water pollution prevention, street furniture and drainage not included in unit cost Transportation Infrastructure Unit Costs (2022) Town of Los Gatos Impact Fee Percent of total before contingency. Includes 20% for project design, 15% for construction engineering, and 5% for project management Appendix, Section 2 ‐ 2 DKS Associates Planning Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number Infrastructure Type:Roadway Date of Estimate:Jul. 9, 2022 Revision No.Revision Date Prepared by:Tommy Cho Revised by No. Description Quantity Units Unit Cost Total 1 Clearing and Grubbing 1.00 SF $3.48 3.48$ 2 Remove Existing Pavement (Obliteration)1.00 SF $6.50 6.50$ 3Roadway Excavation (2' depth)0.07 CY $190.00 14.07$ 4 Finish Grading within Right of Way 1.00 SF $0.38 0.38$ 5 Class 2 Aggregate Base (18") 0.06 CY $196.00 11.76$ 6 Asphalt Concrete (6")(Type A, assume 150 lbs/CF)0.04 Ton $280.00 10.50$ 7 Temporary Traffic Control 1.00 LS $4.70 4.70$ 8 Mobilization 1 LS 4.70$ 4.70$ CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 47.00$ Total Contract Items 56.00$ Click here if this project is a surface treatment or overlay project. Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 3 DKS Associates Planning Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number Infrastructure Type:Sidewalk Date of Estimate:Jul. 9, 2022 Revision No. Revision Date Prepared by:Tommy Cho Revised by No. Description Quantity Units Unit Cost Total 1 Clearing and Grubbing 1.00 SF $0.63 0.63$ 2 Finish Grading within Right of Way 1.00 SF $0.38 0.38$ 3 Concrete Sidewalk 1.00 SF $28.63 28.63$ 5 Curb Ramp 0.0002 EA $5,000.00 1.00$ 6 Temporary Traffic Control 1 LS 3.10$ 3.10$ 7 Mobilization 1 LS 3.10$ 3.10$ CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 31 Total Contract Items 38$ Click here if this project is a surface treatment or overlay project. Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 4 DKS Associates Planning Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number Infrastructure Type:Curb and Gutter Date of Estimate:Jul. 9, 2022 Revision No. Revision Date Prepared by:Tommy Cho Revised by No. Description Quantity Units Unit Cost Total 1 Curb and Gutter 1 LF $106.40 106$ 2 Sawcut Gutter 1 LF -$ 3Temporary Traffic Control 1 LS $10.60 11$ 4 Mobilization 1 LS $10.60 11$ CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 106$ Total Contract Items 127$ Click here if this project is a surface treatment or overlay project. Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 5 DKS Associates Planning Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number Infrastructure Type:Median Date of Estimate:Jul. 9, 2022 Revision No. Revision Date Prepared by:Tommy Cho Revised by No. Description Quantity Units Unit Cost Total 1 Median (Island) Paving 1.00 SF $17.00 17$ 2 Class 2 Aggregate Base (6”)1.00 SF $4.00 4$ 3 Curb 0.20 LF $106.40 21$ 4Temporary Traffic Control 1 LS $4.20 4$ 5 Mobilization 1 LS 4.20$ 4$ CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 42$ Total Contract Items 50$ Click here if this project is a surface treatment or overlay project. Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 6 DKS Associates Planning Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number Infrastructure Type:Bicycle Path (Shared Use Path) Date of Estimate:Jul. 9, 2022 Revision No. Revision Date Prepared by:Tommy Cho Revised by No. Description Quantity Units Unit Cost Total 1 Clearing and Grubbing 1.00 SF $3.48 3.48$ 2 Remove Existing Pavement (Obliteration)1.00 SF $6.50 6.50$ 3Roadway Excavation (1.5')0.06 CY $190.00 11.40$ 3 Finish Grading within Right of Way 1.00 SF $0.38 0.38$ 4 Class 2 Aggregate Base (4") 0.02 CY $196.00 2.94$ 5 Hot Mix Asphalt (Type A) (4")(assume 150 lbs./CF)0.03 Ton $280.00 7.00$ 6Temporary Traffic Control 1 LS $3.20 3.20$ 7 Mobilization 1 LS 3.20$ 3.20$ CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 32$ Total Contract Items 38$ Click here if this project is a surface treatment or overlay project. Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 7 DKS Associates Planning Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number Infrastructure Type:Bicycle Lane (Class II) Date of Estimate:Jul. 9, 2022 Revision No. Revision Date Prepared by:Tommy Cho Revised by No. Description Quantity Units Unit Cost Total 1 Remove existing striping 1.00 LF $2.30 2.30$ 2 Striping 1.00 LF $4.51 4.51$ 3 Signage 0.0008 EA $500.00 0.38$ 4Temporary Traffic Control 1 LS $0.70 0.70$ 5 Mobilization 1 LS 0.70$ 0.70$ CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 7$ Controtal Contract Items 8$ Click here if this project is a surface treatment or overlay project. Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 8 DKS Associates Planning Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number Infrast Traffic Signal for One Intersection Date oJul. 9, 2022 Revision No.Revision Date PreparTommy Cho Revised by No. Description Quantity Units Unit Cost* Total 1 Furnish & Install Cabinet and Controller on New Foundation 1 EA $45,000.00 45,000$ 2 Furnish and Install Fiber Switch In Controller Cabinet. 1EA $2,500.00 2,500$ 3 Terminate fiber optic cable in cabinet 1EA $2,500.00 2,500$ 4 Splice 12 Strand SMFO Cable to trunk cable in vault 1EA $1,000.00 1,000$ 5 Furnish & Install Opticom EVP system in signal cabinet 1EA $7,500.00 7,500$ 6 Furnish & Install Opticom Card Rack 1 EA $1,000.00 1,000$ 7 Furnish & Install Opticom Detector 4 EA $1,200.00 4,800$ 8 Furnish & Install VIVDS System, incl. cameras, comms manager, and SDLC hub (per intersection)1 EA $25,000.00 25,000$ 9 Furnish & Install CCTV Camera 1EA $5,000.00 5,000$ 10 Furnish & Install Detector Handhole 4 EA $500.00 2,000$ 11 Furnish & Install Detector Loops (6'x6')8EA $2,000.00 16,000$ 12 Furnish & Install LED Countdown Pedestrian Signal Head 8EA $800.00 6,400$ 13 Furnish & Install Polara Navigator Pedestrian Pushbutton 8EA $1,200.00 9,600$ 14 Furnish & Install Polara CCU in Cabinet 1 EA $4,500.00 4,500$ 15 Furnish & Install SNS on Mast Arm 4 EA $2,000.00 8,000$ 16 Furnish & Install LED Luminaire 4 EA $1,500.00 6,000$ 17 Furnish & Install Photoelectric Control Unit (PEU)1EA $500.00 500$ 18 Furnish & Install Pull Box #5 4 EA $900.00 3,600$ 19 Furnish & Install Pull Box #6 2 EA $1,000.00 2,000$ 20 Furnish & Install Fiber Optic Splice Vault 1 EA $1,250.00 1,250$ 21 Furnish and install 2" conduit with backfill and trenching 100 LF $120.00 12,000$ 22 Furnish and install 3" conduit with backfill and trenching 1000 LF $125.00 125,000$ 23 Furnish and install 4" conduit with backfill and trenching 100 LF $130.00 13,000$ 24 Furnish & Install Type 1-B 4' Pole and Foundation 4EA $3,500.00 14,000$ 25 Furnish & Install Type 1-B 10' Pole and Foundation 4EA $6,500.00 26,000$ 26 Furnish & Install Type 28-5-100 Pole and Foundation 4EA $26,000.00 104,000$ 27 Furnish & Install Signal Head Mount Type SV-1-T 4EA $700.00 2,800$ 28 Furnish & Install Pedestrian Signal Head Mount SP-2-T 4EA $1,000.00 4,000$ 29 Furnish & Install #14 Conductors 7000 LF $1.50 10,500$ 30 Furnish & Install #10 Conductors 1500 LF $2.00 3,000$ 31 Furnish & Install #8 Conductors 600 LF $2.50 1,500$ 32 Furnish & Install #6 Conductors 50 LF $3.00 150$ 33 Furnish & Install #2 Conductors 1000 LF $4.00 4,000$ 34 Furnish & Install Detector Lead-in Cables 250 LF $3.00 750$ 35 Furnish & Install EVP Cable (Opticom Model 138)500 LF $3.00 1,500$ 36 Furnish & Install CCTV Cable (CAT6)100 LF $3.00 300$ 37 Furnish & Install VIVDS Cable (3-wire)500 LF $3.00 1,500$ 38 Furnish & Install 12-strand Fiber Optic Cable 300 LF $5.00 1,500$ 39 Furnish & Install Trace Cable (#10)300 LF $2.00 600$ 40 Temporary Traffic Control 1 LS $54,500.00 54,500$ 41 Mobilization 1 LS 54,500.00$ 54,500$ *2020 unit costs 545,000$ Total Contract Items 654,000$ CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL, ESC TO 2022 AT 3% (TO NEAREST 1,000) Click here if this project is a surface treatment or overlay project. Click here if the project schedule for this project is to be 50 days or more; also click here if this is Appendix, Section 2 ‐ 9