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2024-003 - Adopting the Nexus Study for the 2023 Update to the Transportation Impact FeeRESOLUTION 2024-003 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ADOPTING THE NEXUS STUDY FOR THE 2023 UPDATE TO THE TRANSPORTATION IMPACT FEE WHEREAS, the Town has an existing traffic impact fee; WHEREAS, the Town wishes to update the traffic impact fee to, among other things, rename it as the "transportation impact fee" and utilize the calculation methods required by AB 602 amending the state Mitigation Fee Act; WHEREAS, Government Code Section 66016.5 requires that the Town adopt a nexus study to support changes to development impact fees; WHEREAS, DKS Associates on behalf of the Town has prepared the Transportation Impact Fee Update Nexus Study dated November 2023 (the "Nexus Study"); WHEREAS, the Town has prepared a Capital Improvement Plan describing the improvements to be funded with the Transportation Impact Fee, which is included in the Nexus Study; WHEREAS, the Nexus Study describes the projects on which transportation impact fees are to be imposed, the reasonable relationship between the impact fees and the various types of new development, the need for new public facilities and improvements to serve the new development, sets forth a methodology for determining the relationship between new development and the needed public facilities and the estimated cost of those improvements, and otherwise satisfies the requirements of the state Mitigation Fee Act; WHEREAS, the Town has complied with the notice and hearing requirements of state law in that the Town Council met on November 21, 2023, to schedule a noticed public hearing for January 16, 2024, and the Town mailed notice to any interested party who had filed a written request with the Town Clerk for mailed notice of a meeting on new or increased fees; WHEREAS, the Town Council held a public hearing on January 16, 2024; NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS, CALIFORNIA, HEREBY FINDS AND RESOLVES that: 1. Adoption of the Nexus Study. The Town Council hereby approves the Nexus Study, which includes the Town's capital improvement plan, prepared by DKS Associates and dated November 2023, and attached as Exhibit A to this Resolution. The Town Council further adopts the methodology set forth in the Nexus Study for calculating and collecting the impact fees. A copy of the Nexus Study shall be on file with the Town Clerk and available during regular Town business hours for public inspection. 1 of 2 Resolution 2024 - 003 January 16, 2024 2. Severability. If any section subsection, subdivision, paragraph, sentence, clause, or phrase of this Resolution or any part hereof is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portion of this Resolution or any part thereof. The Town Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one ore more section, subsection, subdivision, paragraph, sentence, clause, or phrase be declared invalid or unconstitutional. 3. CEQA. Pursuant to section 15378(b)(4) of the California Environmental Quality Control Act (CEQA) Guidelines, the adoption of the Nexus Study supporting an update to the Town's transportation impact fee is not a project subject to CEQA in that it is a government fiscal activity which does not involve any commitment to any specific project which may result in a significant impact on the environment. 4. Effective Date. This Resolution will become effective upon adoption. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 16th day of January, 2024, by the following vote: COUNCIL MEMBERS: AYES: Maria Ristow, Rob Rennie, Rob Moore, Matthew Hudes NAYS: Mayor Mary Badame ABSENT: None ABSTAIN: None SIGNED: MAYOHE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: 0///7/2A1Li ATTEST: TOWN CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIJ\ DATE: %fr,/anaLJ 2 of 2 Resolution 2024 - 003 January 16, 2024 TRANSPORTATION IMPACT FEE NEXUS REPORT NOVEMBER 2023 PREPARED FOR: TOWN OF LOS GATOS DKS 1970 BROADWAY, SUITE 740. OAKLAND. CA 94612 • 510.763.2061 - DKSASSOCIATES.COM SHAPING A SMARTER TRANSPORTATION EXPERIENCE EXHIBIT A PREPARED FOR TOWN OF LOS GATOS PREPARED BY DKS ASSOCIATES DKS IN COORDINATION WITH URBAN ECONOMICS AND RINCON Urban Economics Rincon Consultants, Inc. EnvironmentalSc,enbsts Planners Engrnaers DKS 2 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 DKS 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 DKS 4 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 relationships': 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". California Government Code, section 66001(a)(3), 66001(a)(4), and 66001(b) D KS TOWN OF C S n �- c N PO -[C N 1: P... FEE •NFXl c ;ins{ TC!in ,.�-, G,- 7� I �'./+R_I- �7i�_�I �I.-�_ .A r.� _ r �� :._tl_ -..., 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. DKS 6 TABLE 1: EXISTING AND FORECASTED DEVELOPMENT LAND USE EXISTING (2021) a GROWTH (2022-2040) b TOTAL 2040 RESIDENTIAL (DWELLING UNITS) SINGLE FAMILY ° 10,100 113 10,213 MULTI -FAMILY ° 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 ` 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 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. ° 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. Existing (2021) based on detached and attached single family. Growth (2022-2040) based on low and medium density residential land use categories. ° 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). DKS TABLE 2: DWELLING UNIT EQUIVALENT (DUE) RATES LAND USE ITE LAND USE AVG. PERCENT TRIP DEMAND DWELLIN (CODE) WEEKDAY NEW LENGTH FACTOR B G UNIT TRIP RATE TRIPS A FACTOR B EQUIVALE NT SINGLE-FAMILY (PER DWELLING UNIT) Single Family Homes (210) 9.43 100 7,9 74.50 1.00 MULTI -FAMILY (PER DWELLING UNIT) Multifamily 6.74 100 7.9 53.25 0.71 Mid -rise (221) RETAIL (PER 1,000 Shopping 37.01 78 3.6 103.92 1.40 SQUARE FEET) Center (820) OFFICE (PER 1,000 General Office 10.84 96 8.8 91.58 1,23 SQUARE FEET) (710) INDUSTRIAL (PER 1,000 SQUARE FEET) General Light Industrial (110) 4.87 98 9.0 42.95 0.58 a Includes diverted trips. ° 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. 0 KS 8 TABLE 3: TRANSPORTATION DEMAND BY DWELLING UNIT EQUIVALENTS (DUEs) LAND USE EXISTING DUEs (2021) GROWTH DUEs TOTAL DUEs (2023-2040) (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% Sources: Table 1 and Table 2. DKS 9 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. DKS IC 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 ' $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 D KS 11 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. DKS TOWN OF LOS G TOS RANSPO T".Hari IMP Cr Fri 12 TABLE 5: TRANSPORTATION INFRASTRUCTURE UNIT COSTS (2022 $) INFRASTRUCTURE TYPE UNIT CONSTRUCTION DESIGN & CONTINGENCY TOTAL UNIT COST° MANAGEMENT COST` COST b 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% $1,098,720 a) Construction costs include temporary traffic control where applicable. b) Percent of total before contingency. Includes 20% for project design, 15% for construction engineering, and 5% for project management. c) Construction Cost*(1+Design Management%) * (1+ Contingency%). d) Cost of street lighting, water pollution prevention, street furniture and drainage not included in unit cost Source: DKS Associates DKS 13 A 0 0.5 1 mi — Arterial — Collector Hillside Collector — Neighborhood Collector Traffic Light Town Limits FIGURE 1: MAP OF TOWN -WIDE INFRASTRUCTURE DKS 14 TABLE 6: EXISTING FACILITY STANDARD & LEVEL OF INVESTMENT EXISTING EXISTING REPLACE- INFRA- DWELLING FACILITIES MENT STRUCTURE INVENTORY UNITS STANDARD COSTS TYPE EQUIVALENTS UNITS PER PER UNIT DUE DUE EXISTING LEVEL OF INVESTMENT ($ 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 & 311,245 linear feet 21,997 14.1 $214 $3,024 GUTTER MEDIAN 88,386 square feet 21,997 4.0 $85 $340 BICYCLE 244,859 square feet 21,997 11.1 $65 $718 PATH BICYCLE 65,719 linear feet 21,997 3.0 $14 $42 LANE TRAFFIC 31 intersections 21,997 0.001 $1,098,720 $1,548 SIGNAL Total $57,907 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. DKS 15 TABLE 7: TRANSPORTATION IMPROVEMENT COST PER DWELLING UNIT EQUIVALENT ALLOCATED TRANSPORTATION IMPROVEMENT $41,700,514 COSTS 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). DKS 16 TABLE 8: RECOMMENDED FEE SCHEDULE LAND USE IMPROVEMENT COST PER DWELLING UNIT EQUIVALENT DWELLING UNIT EQUIVALENT PER FEE UNIT 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 TOTAL TIF PROGRAM FEES AVERAGE SIZE TIF PROGRAM FEES (SQUARE FEET) PER SQUARE FOOT SINGLE FAMILY DWELLING $16,051 UNITS 2,632 $6.10 MULTI FAMILY DWELLING $11,472 UNITS 1,649 $6.96 aIncludes ADUs of 750 or more square feet. Source: Town of Los Gatos. DKS 17 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. DKS 1s TABLE 10: TRANSPORTATION IMPACT FEES IN COMPARABLE JURISDICTIONS SINGLE MULTIFAMILY JURISDICTION FAMILY OFFICE RETAIL HOTEL (UPDATE YEAR) RESIDENTIAL RESIDENTIAL (PER KSF) (PER KSF) (PER ROOM) PER DU PER DU 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 EAST PALO ALTO Citywide: $9,266 per net new PM peak hour trip Charleston/Arastradero district: $460/KSF commercial or $1.599 Der DUE $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" "High -Density" $13,012 $10,548 Low Traffic Commercial: 14,397 High Traffic Commercial: $ 29, 082 MORGAN HILL > 1,200SF: $3,585 $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 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 DKS 19 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. ' Proposed change to current policy which exempts all ADUs. DKS 20 TABLE 11: MAXIMUM REVENUE PROJECTION LAND USE TIF FEES PER UNIT EXPECTED REVENUE GROWTH 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 368 $8,236,767 feet OFFICE $19,731 per 1,000 square 147 $2,891,486 feet INDUSTRIAL $9,255 per 1,000 square 157 $1,457,037 feet Total $41,700,514 Sources: Table 1 and Table 8. DKS 21 APPENDIX DKS 1970 BROADWAY, SUITE 740, OAKLAND. CA 94612 • S10.7E3.2061 • DKSASSOCIATES.COM SHAPING A SMARTER TRANSPORTATION EXPERIENCE- CONTENTS SECTION 1. PROJECT LIST SECTION 2. UNIT COST DETAIL DKS SECTION 1. PROJECT LIST DKS Town of Los Gatos TIF Project List Unfunded Cost Allocated to TIF Calculation O O v O H $ 2,900,000I 10 . aft o .i V! 0 o CO N .N1 m .O an N m n N pO O .A pO g o rl in O t D o 4.-1 V! O 00 0 V! O 0 Vf S o 4u1 an M '0o- V) CO O Q V! Estimated Funding from Other Sources $ 99,738,000 m in8 O .i V! pV O .-. m W. .4 fV a 00 V! C1 v m CO 1-1 VT O n Op 01 . N 8 0 O ti ..1 an N .*D .B N O t/. N lat 00 .O . p N N Total: Cost Estimate ($2022) 8 W N V! en N M R VI .tal nD N . V! .~-. In V N N $ 25,288,625 O 0 .-I V! S pO O V! 80 O N an .^O N V an $ 5,635,562 $ 400,000I O o .4 N n N el N Fee Program Component f H 1- h 2 ; VMT VMT f H F- F ; C O O. N g 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 meters Add shoulders and retaining wall between Santa Rosa Drive and Diduca Way, Add sidewalks and bike lanes between Blossom Valley Dr to Lynne Ave Smart 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 systems Overcrossing of SR-17 south of Blossom Hill Road Add sidewalks and Class II bicycle lanes from Los Gatos Bld to Englewood Ave Fill gaps in sidewalks, multiple locations on Town -wide circulation network Construct new bicycle lanes, cycle tracks and multiuse paths Fill gaps in sidewalks between Peach Blossom Lane and Camino del Cerro Add sidewalks and bicycle lanes between Samaritan Drive and Camino Del Sol Add lighting, signage, and other project elements High visibility crosswalks, midblock crossings, pedestrian beacons, and other project elements on Town -wide circulation network Work towards implement priority projects from BPMP as feasible Category ,Source Santa Clara VIA Measure B Projects Town of Los Gatos Capital Improvement Program Carryover from previous TIF project list Town of Los Gatos Capital :Improvement Program e a o c c m v . c c A W T V m Kennedy Road Bicycle and Pedestrian Master Plan Bicycle and Pedestrian Master Plan Carryover from previous TIF project list Carryover from previous TIF project list Downtown Parking Roadmap Bicycle and Pedestrian Master Plan; Local Road Safety Plan Bicycle and Pedestrian Master Plan Notes: 1) Unfunded cost for this project reduced by 2023 transfer of traffic impact fee funding to project account. Safety and Capacity Improvements Safety and Capacity Improvements Complete Streets (Carryover) Traffic Signal BPMP Priority Projects IBPMP Priority Projects (:Sidewalk Gap Filling Projects (Other BPMP Projects - New Facilities New and Expanded Bicycle and Pedestrian Facilities (Non Priority Projects) Other BPMP Projects - New Facilities Los Gatos Almaden Road Complete Streets Improvements Complete Streets (Carryover) Los Gatos Boulevard Multimodal Widening Complete Streets (Carryover) Parking Program Implementation (Lighting and Signage Bicyle and Pedestrian Improvements Program - Other BPMP Projects - Bicyclist and Safety Improvements !Pedestrian Safety Priority Projects from Bicycle and Pedestrian Master Plan BPMP Priority Projects Project Name State Route 17 Corridor Congestion Relief Project Shannon Rd Widening and Safety Improvements Union Avenue Widening and Sidewalks Traffic Signal Modernization Program Highway 17 Bicycle & Pedestrian Overcrossing :Kennedy Sidewalk & Bike Lanes 0 .. ry m p N N , CO m 01 M .� .� n4 m .1 YL Project Corridors — 1 -- 2 — 3 —•5 — 6 — 7 — 8 —9 — 10 Traffic Signal Modernization (#4) - Bike-Ped Safety Projects (#12) Town Limits FIGURE 2: TIF PROJECTS DKS uJ3 25 SECTION 2. UNIT COST DETAIL DKS Transportation Infrastructure Costs (2022) Town of Los Gatos Impact Fee # Infrastructure Type Unit Total Unit Cost' 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 See Unit Cost Table for detailed information $ 1,273,809,540 P:\P\22\22046-000 Los Gatos TIF Update\05 Analysis\03 Inventory\Los Gatos Transportation Impact Fee Unit Costs 11-21-2022 Transportation Infrastructure Unit Costs (2022) Town of Los Gatos Impact Fee # Infrastructure Type Unit Construction Cost ($) Design & Management Cost1 Contingency Total Unit 2 Cost 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 Percent of total before contingency. Includes 20% for project design, 15% for construction engineering, and 5% for project management 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 Appendix, Section 2 - 2 DKS Associates Plannin• Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number (] Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge ❑ Click here if this project is a surface treatment or overlay project. Infrastructure Type: Date of Estimate: Jul. 9, 2022 Prepared by: Tommy Cho Roadway Revision No. Revision Date 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 3 Roadway 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 Ibs/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 Appendix, Section 2 - 3 DKS Associates Plannin• Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number g Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge ❑ Click here if this project is a surface treatment or overlay project. Infrastructure Type: Date of Estimate: Jul. 9, 2022 Prepared by: Tommy Cho Sidewalk Revision No. Revision Date 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 Appendix, Section 2 - 4 DKS Associates Plannin• Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number 0 Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge 0 Click here if this project is a surface treatment or overlay project. Infrastructure Type: Date of Estimate: Jul. 9, 2022 Prepared by: Tommy Cho Curb and Gutter Revision No. Revision Date Revised by No. Description Quantity Units Unit Cost Total 1 Curb and Gutter 1 LF $106.40 $ 106 2 Sawcut Gutter 1 LF $ - 3 Temporary 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 Appendix, Section 2 - 5 DKS Associates Plannin• Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number ❑� Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge ❑ Click here if this project is a surface treatment or overlay project. Infrastructure Type: Date of Estimate: Jul. 9, 2022 Prepared by: Tommy Cho Median Revision No. Revision Date 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 4 Temporary Traffic Control 1 LS $4.20 $ 4.20 $ 4 5 Mobilization 1 LS $ 4 CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) $ 42 Total Contract Items $ 50 Appendix, Section 2 - 6 DKS Associates Plannin• Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number g Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge 0 Click here if this project is a surface treatment or overlay project. Infrastructure Type: Date of Estimate: Jul. 9, 2022 Prepared by: Tommy Cho Bicycle Path (Shared Use Path) Revision No. Revision Date 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 3 Roadway 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 6 Temporary Traffic Control 1 LS $3.20 $ 3.20 $ 3.20 7 Mobilization 1 LS $ 3.20 CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) $ 32 Total Contract Items $ 38 Appendix, Section 2 - 7 DKS Associates Plannin• Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number ID Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge ❑ Click here if this project is a surface treatment or overlay project. Infrastructure Type: Date of Estimate: Jul. 9, 2022 Prepared by: Tommy Cho Bicycle Lane (Class II) Revision No. Revision Date 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 4 Temporary Traffic Control 1 LS $0.70 $ 0.70 $ 0.70 5 Mobilization 1 LS $ 0.70 CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) $ 7 Contotal Contract Items $ 8 Appendix, Section 2 - 8 DKS Associates Plannin• Cost Estimate 1970 Broadway Ste 740, Oakland CA 94612 Project Number 0 Click here if the project schedule for this project is to be 50 days or more; also click here if this is ❑ Click here if this project is a surface treatment or overlay project. Infra' Traffic Signal for One Intersection DateoJul. 9, 2022 PrepaiTommy Cho Revision No. Revision Date 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. 1 EA $2,500.00 $ 2,500 3 Terminate fiber optic cable in cabinet 1 EA $2,500.00 $ 2,500 4 Splice 12 Strand SMFO Cable to trunk cable in vault 1 EA $1,000.00 $ 1,000 5 Furnish & Install Opticom EVP system in signal cabinet 1 EA $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 1 EA $5,000.00 $ 5,000 10 Furnish & Install Detector Handhole 4 EA $500.00 $ 2,000 11 Furnish & Install Detector Loops (6'x6') 8 EA $2,000.00 $ 16,000 12 Furnish & Install LED Countdown Pedestrian Signal Head 8 EA $800.00 $ 6,400 13 Furnish & Install Polara Navigator Pedestrian Pushbutton 8 EA $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) 1 EA $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 4 EA $3,500.00 $ 14,000 25 Furnish & Install Type 1-B 10' Pole and Foundation 4 EA $6,500.00 $ 26,000 26 Furnish & Install Type 28-5-100 Pole and Foundation 4 EA $26,000.00 $ 104,000 $ 2,800 27 Furnish & Install Signal Head Mount Type SV-1-T 4 EA $700.00 28 Furnish & Install Pedestrian Signal Head Mount SP-2-T 4 EA $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 $ 54,500.00 $ 54,500 41 Mobilization 1 LS $ 54,500 *2020 unit costs CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL, ESC TO 2022 AT 3% (TO NEAREST 1,000) $ 545,000 Total Contract Items $ 654,000 Appendix, Section 2 - 9