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12 Staff Report.TIP with attachments PREPARED BY: Nicolle Burnham Parks and Public Works Director Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL STUDY SESSION REPORT MEETING DATE: 01/16/2024 ITEM NO: 12 DATE: December 21, 2023 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Conduct a Public Hearing for the Town’s Transportation Impact Fee Program to: a. Adopt a Resolution to Adopt the Transportation Impact Nexus Study Dated November 2023 (including the Project List – Appendix 1 Which Serves as the Town’s Transportation Capital Improvement Plan); b. Adopt a Resolution to Update a Transportation Impact Fee to Replace the Town’s Existing Traffic Impact Mitigation Fee; c. Introduce an Ordinance Titled “An Ordinance of the Town of Council of the Town of Los Gatos Amending Town Code Section 15, Article VII ‘Traffic Impact Mitigation Fees’”; and d. Adopt a Resolution to Modify Town Council Policy 1-08: “Transportation Impact Policy.” RECOMMENDATION: Conduct a Public Hearing for the Town’s Transportation Impact Fee Program to: a. Adopt a resolution to adopt the Transportation Impact Nexus Study dated November 2023 (including the Project List – Appendix 1 which serves as the Town’s Transportation Capital Improvement Plan) (Attachment 1); b. Adopt a resolution to update a Transportation Impact Fee to Replace the Town’s Existing Traffic Impact Mitigation Fee (Attachment 2); c. Introduce an ordinance titled “An Ordinance of the Town of Council of the Town of Los Gatos Amending Town Code Section 15, Article VII ‘Traffic Impact Mitigation Fees’” (Attachment 3); and d. Adopt a resolution to modify Town Council Policy 1-08: “Transportation Impact Policy” (Attachment 5). PAGE 2 OF 6 SUBJECT: Conduct a Public Hearing Regarding the Town’s Transportation Impact Fee Program DATE: December 21, 2023 BACKGROUND: In 1987 the State of California passed Assembly Bill 1600, which was codified in Government Code Sections 66000-66025 and is commonly referred to as the Mitigation Fee Act (“the Act”). The Act allows local governments to implement fees to defray all, or a portion of, the cost of public facilities related to development projects. In adopting fees as allowed by the Act, the following must be documented: 1. Project Effects: There must be a reasonable relationship established between the new development and the need for public facilities. 2. Benefit: There must be a reasonable relationship between new development and the use of revenue from the fee charged, meaning that the fee must be used to pay for improvements that are needed to accommodate the development. 3. Proportionality: There must be a reasonable relationship between the amount of the fee and the portion of public facilities cost associated with the new development. In 2021, the State of California passed Assembly Bill 602, which, among other actions, amends Government Code Section 66019 and adds Section 66016.5. Effective on January 1, 2022, AB 602 requires: 1. Adoption of a Nexus Study that identifies the existing level of service, identifies new levels of service, and includes an explanation of why the new levels of service are needed; 2. The Nexus Study calculates impact fees for housing projects based on the square footage of the proposed units; 3. Large jurisdictions (defined to include cities within counties with populations over 250,000) must adopt a Capital Improvement Plan as part of the Nexus Study; 4. A 30-day public notice for a public hearing prior to adopting the Nexus Study; and 5. Nexus studies must be updated every eight years. The Town of Los Gatos most recently updated its Nexus Study and Traffic Impact Fee (TIF) in 2014. Since that time, annual increases in the TIF have been adopted based on the Consumer Price Index. Since early 2022, staff has been working with DKS Associates to complete a Transportation Nexus Study, update the current Traffic Impact Fee amount, and consider a Vehicle Miles Traveled Impact Fee. On May 2, 2023, the Town Council received a report on the technical work to calculate a recommended fee for each land use type. PAGE 3 OF 6 SUBJECT: Conduct a Public Hearing Regarding the Town’s Transportation Impact Fee Program DATE: December 21, 2023 BACKGROUND (continued): On October 10, 2023, a study session was held to respond to questions that Town Council had posed at the May 2, 2023, meeting. At that October meeting, Council took a series of actions that provided the direction and feedback needed for staff to propose a Transportation Impact Fee for consideration. On November 21, 2023, Town Council reviewed the Nexus Study, including the Project List in Appendix 1, which serves as the Town’s Transportation Capital Improvement Plan, and set a Public Hearing date of January 16, 2024. At each of these meetings, the public was provided the opportunity to submit written and verbal comments pertaining to the Nexus Study and the Town’s proposed changes to the Traffic Impact Fee Program. The proposed actions for this Public Hearing, if approved, would result in adoption of the Nexus Study, including the Project List which will serve as the Town’s Transportation Capital Improvement Plan, adoption of the updated Transportation Impact Fee, and adoption of ordinance changes and resolutions needed to administer the proposed fee. DISCUSSION: Nexus Study Attachment 1 to this report is a draft resolution to adopt the Nexus Study prepared by DKS Associates (the consultant) on behalf of the Town of Los Gatos. Exhibit A of the Resolution in Attachment 1 includes the Nexus Study document. In developing the Nexus Study, the Town’s various planning documents were considered, including General Plan 2020, General Plan 2040, and the General Plan 2040 Environmental Impact Report (EIR). These planning documents provided the basis for future development in the Town of Los Gatos and the traffic generation and transportation impacts that would result from that development. Preparation of the Nexus Study also included review of the numerous transportation and traffic related planning documents that have been developed by the Town, including the Bicycle and Pedestrian Master Plan, projects included in the 2014 Nexus Study that were not completed, the Town’s Downtown Parking Roadmap, needed improvements to the Town’s Traffic Signal System, and the State Route 17/Highway 9 Congestion Relief Project. This information was used to develop a Capital Improvement List for the Town, which is shown in Appendix Section 1 of the Nexus Study document. PAGE 4 OF 6 SUBJECT: Conduct a Public Hearing Regarding the Town’s Transportation Impact Fee Program DATE: December 21, 2023 DISCUSSION (continued): The Nexus Study defines the existing level of investment that the Town is making in the transportation system, which sets the maximum justifiable fee that the Town may charge for the Transportation Impact Fee. This maximum justifiable fee was determined to be $57,907 per dwelling unit equivalent (see Table 6 on page 15 of the Nexus Study Report). This fee is based on the high level of historic investment the Town has made, and continues to make annually, in its transportation and traffic infrastructure. Proposed Transportation Impact Fees Based on the analysis completed in developing the Nexus Study, the fees presented in Table 1 are proposed for adoption. Attachment 2 is a resolution to adopt these fees. Table 1. Proposed Town of Los Gatos Transportation Impact Fees, 2024 Land Use Classification Proposed Fee Single Family Residential (per square foot)2 $6.10 Multi-Family Residential (per square foot)3 $6.96 Retail (per 1,000 square feet) $22,391.00 Office (per 1,000 square feet) $19,731.00 Industrial (per 1,000 square feet) $9,255.00 Notes: 1. Taken from Nexus Study by DKS Associates. 2. Single family fee is $16,051 per dwelling unit; converted to a square foot basis using an average single family residential unit size of 2,632 square feet. 3. Multi-family fee is $11,472 per dwelling unit converted to a square foot basis using an average multi- family residential unit size of 1,649 square feet. During development of the Nexus Study, staff considered implementing a Vehicle Miles Traveled (VMT) Impact Fee separate from the Transportation Impact Fee. Adoption of separate fees is not proposed currently due to the complexity of administering two fee programs, and the fact that Valley Transportation Agency (VTA) is considering a County-wide VMT Mitigation Program. Amendments to Town Code Section 15 In adopting the new Nexus Study and developing the updated fee program, amendments to Town Code Section 15 are required. Attachment 3 to this staff report details the proposed changes. Attachment 4 is a redline of the changes proposed to Section 15. Of note, staff is recommending: PAGE 5 OF 6 SUBJECT: Conduct a Public Hearing Regarding the Town’s Transportation Impact Fee Program DATE: December 21, 2023 DISCUSSION (continued): 1. The title of this section and the name of the fee be changed to Transportation Impact Fees to reflect the inclusion of bicycle and pedestrian projects in the Project List included in Appendix 1 of the Nexus Study (i.e., the Capital Improvement Plan) rather than just traffic-related projects; 2. The method of calculating the fees has been updated to reflect the methods used in the Nexus Study and those required by AB 602; and 3. A section on credits was added, allowing deed restricted low- and very-low-income housing units to receive a 50% credit against their fees, and to allow all developments to receive credit for existing traffic from current uses of a property. Town Council Policy 1-08 - Transportation Impact Policy In adopting the Nexus Study, certain changes to Town Council Policy 1-08 are needed. Attachment 5 is a resolution to support adoption of the changes, and the proposed revisions to this Policy are attached to the resolution. Attachment 6 is a redline of the changes proposed to Town Policy 1-08. Specific proposed changes to the Policy include: 1. Updating the name of the fee; 2. Allowing Transportation Impact Fees to be charged on Accessory Dwelling Units of 750 square feet or larger as allowed per State Law; 3. Clarifying that residential fees are calculated based on a per square foot basis, rather than per dwelling unit; 4. Updating information about credits to be consistent with proposed Town Code Chapter 15; and 5. Replacing the project list in Attachment 2 with the Capital Improvement Plan in Appendix 1 of the Nexus Study. CONCLUSION: The actions proposed herein will result in the Town of Los Gatos Transportation Impact Fee being updated to reflect the Town’s capital improvement needs. The actions taken will update pertinent Town Codes and Policies in accordance with the Nexus Study. COORDINATION: This agenda item was coordinated with the Town Manager, Town Attorney, and the Finance Director. PAGE 6 OF 6 SUBJECT: Conduct a Public Hearing Regarding the Town’s Transportation Impact Fee Program DATE: December 21, 2023 FISCAL IMPACT: There is no fiscal impact associated with Town Council adopting the Nexus Study and updating the Transportation Impact Fee Program. If adopted, the Fee program will support funding for, and implementation of the Transportation Capital Improvement Projects defined in the Nexus Study. ENVIRONMENTAL ASSESSMENT: In accordance with CEQA Guidelines Section 15378(b)(4), these actions are fiscal activities and are not projects as defined in CEQA, and no further action is required. Attachments: 1. Draft Resolution to Adopt the Nexus Study, including the Project List which serves as the Town’s Transportation Capital Improvement Plan 2. Draft Resolution to Adopt Updated Transportation Impact Fee to Replace the Town’s Existing Traffic Impact Mitigation Fee 3. Draft Ordinance Titled “An Ordinance of the Town of Council of the Town of Los Gatos Amending Town Code Section 15, Article VII ‘Traffic Impact Mitigation Fees’” 4. Redline of Proposed Changes to Town Code Section 15, Article VII 5. Draft Resolution to Modify Town Council Policy 1-08, “Transportation Impact Policy.” 6. Redline of Proposed Changes to Town Council Policy 1-08 ATTACHMENT 1 TOWN OF LOS GATOS RESOLUTION NO. ____ (2024) ADOPTING THE NEXUS STUDY FOR THE 2023 UPDATE TO THE TRANSPORTATION IMPACT FEE WHEREAS, the Town has an exis�ng traffic impact fee; WHEREAS, the Town wishes to update the traffic impact fee to, among other things, rename it as the “transporta�on impact fee” and u�lize the calcula�on methods required by AB 602 amending the state Mi�ga�on Fee Act; WHEREAS, Government Code Sec�on 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 Transporta�on 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 Transporta�on Impact Fee, which is included in the Nexus Study; WHEREAS, the Nexus Study describes the projects on which transporta�on impact fees are to be imposed, the reasonable rela�onship between the impact fees and the various types of new development, the need for new public facili�es and improvements to serve the new development, sets forth a methodology for determining the rela�onship between new development and the needed public facili�es and the es�mated cost of those improvements, and otherwise sa�sfies the requirements of the state Mi�ga�on Fee Act; WHEREAS, the Town has complied with the no�ce and hearing requirements of state law in that the Town Council met on November 21, 2023, to schedule a no�ced public hearing for January 16, 2024, and the Town mailed no�ce to any interested party who had filed a writen request with the Town Clerk for mailed no�ce of a mee�ng 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. Adop�on 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 atached as Exhibit A to this Resolu�on. The Town Council further adopts the methodology set forth in the Nexus Study for calcula�ng and collec�ng 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 inspec�on. ATTACHMENT 1 2. Severability. If any sec�on subsec�on, subdivision, paragraph, sentence, clause, or phrase of this Resolu�on or any part hereof is for any reason held to be invalid or uncons�tu�onal, such decision shall not affect the validity of the remaining por�on of this Resolu�on or any part thereof. The Town Council hereby declares that it would have passed each sec�on, subsec�on, subdivision, paragraph, sentence, clause or phrase hereof, irrespec�ve of the fact that any one ore more sec�on, subsec�on, subdivision, paragraph, sentence, clause, or phrase be declared invalid or uncons�tu�onal. 3. CEQA. Pursuant to sec�on 15378(b)(4) of the California Environmental Quality Control Act (CEQA) Guidelines, the adop�on of the Nexus Study suppor�ng an update to the Town’s transporta�on impact fee is not a project subject to CEQA in that it is a government fiscal ac�vity which does not involve any commitment to any specific project which may result in a significant impact on the environment. 4. Effec�ve Date. This Resolu�on will become effec�ve upon adop�on. RESOLUTION NO. ____ (2024) adopted by the Town Council of the Town of Los Gatos, California at a regular mee�ng held on January 16, 2024, by the following vote of the Town Council: TRANSPORTATION IMPACT FEE NEXUS REPORT NOVEMBER 2023 DRAFT PREPARED FOR: TOWN OF LOS GATOS EXHIBIT A 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 ATTACHMENT 2 TOWN OF LOS GATOS RESOLUTION NO. ____ (2024) UPDATING THE TRANSPORTATION IMPACT FEE AND AMENDING THE 2023-2024 MASTER FEE SCHEDULE TO INCLUDE THE UPDATED FEE WHEREAS, the Town has adopted a traffic impact fee which is used to make traffic improvements in the Town; WHEREAS, the Town wishes to rename the traffic impact fee as the “transporta�on impact fee” since it will be used to make transporta�on improvements, which include pedestrian and bicycle improvements; WHEREAS, the amount of the Town’s transporta�on impact fee is established by resolu�on at the Town Council; WHEREAS, the Town’s transporta�on impact fee is used to make transporta�on improvements within the Town; WHEREAS, the state Mi�ga�on Fee Act imposes requirements on local jurisdic�ons prior to implemen�ng increases to development impact fees; and WHEREAS, DKS Associates on behalf of the Town has prepared the Transporta�on 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 Transporta�on Impact Fee, which is included in the Nexus Study; WHEREAS, the Nexus Study describes the projects on which transporta�on impact fees are to be imposed, the reasonable rela�onship between the impact fees and the various types of new development, the need for new public facili�es and improvements to serve the new development, sets forth a methodology for determining the rela�onship between new development and the needed public facili�es and the es�mated cost of those improvements, and otherwise sa�sfies the requirements of the state Mi�ga�on Fee Act; WHEREAS, the Town has complied with the no�ce and hearing requirements of state law in that the Town Council met on November 21, 2023, to schedule a no�ced public hearing for January 16, 2024, and the Town mailed no�ce to any interested party who had filed a writen request with the Town Clerk for mailed no�ce of a mee�ng 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: ATTACHMENT 2 1. Mi�ga�on Fee Act (codified at CA Government Code Sec�ons 66000-66025) Findings. The Town Council finds that: a. The purpose of the fee is to fund transporta�on improvements described in the Town’s Capital Improvement Plan. b. The fee is used to fund transporta�on improvements such as roadways, pedestrian facili�es, bicycle lanes, and traffic signal improvements as described in the Town’s Capital Improvement Plan. c. There is a reasonable rela�onship between the fee’s use and new development, because the fee will be used to make improvements to the City’s transporta�on infrastructure to serve new development and the fee is imposed on all new development requiring a planning applica�on. d. There is a reasonable rela�onship between the need for transporta�on improvements and new development, because the fee is calculated based upon the addi�onal transporta�on needs expected to be generated by each land use. 2. Adop�on of the Transporta�on Impact Fee. The Town Council hereby approves and adopts the development impact fees for transporta�on improvements in accordance with the schedule set forth in Exhibit A to this Resolu�on. 3. Methodology for Calcula�on, Adjustment, and Collec�on of Transporta�on Impact Fees. The transporta�on impact fees shall be calculated, adjusted, and collected in accordance with the Town ordinances and Nexus Study. The amount of the transporta�on impact fees shall be automa�cally adjusted annually for infla�on on July 1st of each year by the percentage change in the Consumer Price Index (Bureau of Labor Sta�s�cs, US Department of Labor for the San Francisco / Oakland / San José Metropolitan Sta�s�cal Area (or any successor index) The calcula�on for that annual adjustment shall be made using the month of April over the month of April in the previous year. 4. Severability. If any sec�on subsec�on, subdivision, paragraph, sentence, clause, or phrase of this Resolu�on or any part hereof is for any reason held to be invalid or uncons�tu�onal, such decision shall not affect the validity of the remaining por�on of this Resolu�on or any part thereof. The Town Council hereby declares that it would have passed each sec�on, subsec�on, subdivision, paragraph, sentence, clause or phrase hereof, irrespec�ve of the fact that any one ore more sec�on, subsec�on, subdivision, paragraph, sentence, clause, or phrase be declared invalid or uncons�tu�onal. 5. CEQA. Pursuant to sec�on 15378(b)(4) of the California Environmental Quality Control Act (CEQA) Guidelines, the adop�on of the resolu�on to approve the fee is not a project subject to CEQA in that it is a government fiscal ac�vity which does not involve any commitment to any specific project which may result in a significant impact on the environment. 6. Effec�ve Date. This Resolu�on will become effec�ve 60 days a�er its adop�on. RESOLUTION NO. ____ (2024) adopted by the Town Council of the Town of Los Gatos, California at a regular mee�ng held on January 16, 2024, by the following vote of the Town Council: Exhibit A EXHIBIT A Transportation Impact Fee, Adopted January 16, 2024 Land Use Classification Proposed Fee Single Family Residential (per square foot)2 $6.10 Multi-Family Residential (per square foot)3 $6.96 Retail (per 1,000 square feet) $22,391 Office (per 1,000 square feet) $19,731 Industrial (per 1,000 square feet) $9,255 Notes: 1. Taken from Nexus Study by DKS Associates. 2. Single family fee is $16,051 per dwelling unit; converted to square foot basis using an average single family residential size of 2,632 square feet. 3. Multi-family fee is $11,472 per dwelling unit converted to square foot basis using an average multi- family residential size of 1,649 square feet. This Page Intentionally Left Blank 1 of 6 Ordinance January 16, 2024 ATTACHMENT 3 DRAFT ORDINANCE AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING TOWN CODE CHAPTER 15, ARTICLE VII, ‘TRAFFIC IMPACT MITIGATION FEES’ WHEREAS, the Town’s traffic impact mitigation fees are codified at Town Code Sections 15.70.010 and following; WHEREAS, an update to these Sections is proposed in order to update the Town’s transportation impact fee program; WHEREAS, in accordance with Assembly Bill 602, revisions to the fee program are required to, among other things, scale the fee based on the square footage of proposed projects and adopt a nexus study and update it every eight years; NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Los Gatos as follows: SECTION I. Chapter 15, Article VII, “Traffic Impact Mitigation Fees,” of the Town Code is amended to read as follows: TRANSPORTATION IMPACT FEES Sec. 15.70.010. Short title. This article shall be known as the "Town of Los Gatos Transportation Impact Fee Ordinance" and may be so cited. (Ord. No. 1828, § I(37.01.010), 7-2-90) Sec. 15.70.015. Purpose. (a) The Town Council finds that all new development and expansion of uses contribute to cumulative transportation impacts. These impacts are difficult to measure and mitigate on a project-by-project basis, yet are cumulatively measurable and mitigable. Failure to expand the capacity and/or reduce the demand of the existing circulation system will cause unacceptable levels of service and congestion on streets and intersections, traffic accidents, air pollution, noise, and restrictions on access for emergency vehicles. (b) The Town Council finds that the purpose of the transportation impact fee is to assure that each new development or expansion of use pays its fair share of the transportation improvements needed to accommodate the cumulative traffic impacts. 2 of 6 Ordinance January 16, 2024 ATTACHMENT 3 (c) The Town Council declares the transportation improvement area shall be the Town limits to finance transportation improvements where such improvements have been identified by the Town's capital improvement plan. (d) The Town Council has determined that transportation impact fees are necessary in order to finance transportation and traffic improvements within the transportation improvement area. (e) These fees are in addition to project specific required capacity improvements and trip- reduction measures. (Ord. No. 1828, § I(37.01.015), 7-2-90; Ord. No. 2284, § 1, 6-18-19 ) Sec. 15.70.020. Scope. This article establishes cumulative transportation impact fees on new developments and expansion of uses authorized through the approval of minor land divisions, major subdivisions, building permits, and all zoning approvals in the Town. This article further provides for the establishment of trust funds to receive the revenues collected by the Town, and authorizes the Council to establish the inventory of capital improvement facilities for which funds may be expended and the amount of fees to be assessed, subject to periodic review. (Ord. No. 1828, § I(37.01.020), 7-2-90) Sec. 15.70.025. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Building permit shall mean the permit issued or required by the Town for the construction of any structure pursuant to and as defined by the building code. Development shall mean residential or nonresidential improvements on a site. Existing development shall mean any already existing habitable residential or nonresidential building or projects which rebuild or remodel the existing development without increasing the trips generated. No fee shall be charged for existing development. Expansion of use, to determine traffic increases, shall include any increase in the number of living units, gross floor area in a nonresidential development and/or any intensification of use which increases trips generated. Future growth shall mean the level of future development anticipated in the Town consistent with the general plan and any applicable specific plan and shall be expressed as the difference between the existing and potential land use within the Town. Both the existing and potential land use data shall be used to estimate the number of trips arriving and/or leaving from various planning areas within the Town through the use of a trip generation rate. 3 of 6 Ordinance January 16, 2024 ATTACHMENT 3 Project Generated VMT shall mean the VMT generated by the development. Site shall mean a plot of ground consisting of one (1) or more lots or parcels on which a common improvement is proposed or exists. Transportation improvements shall mean those improvements and related actions necessary to implement the circulation element of the Town's General Plan, any applicable specific plan, and the Town’s capital improvement plan and shall include and not be limited to: paving, curb and gutter, sidewalks, medians with landscaping, drainage facilities, traffic signals, street lighting, signing, striping, noise walls, bicycle facilities, right-of-way and other improvements or actions necessary to mitigate significant cumulative traffic impacts. Trip generation rate shall mean the number of vehicle trips over a weekday twenty-four- hour period generated by a particular type of land use and shall be expressed in terms of the number of acres or square feet of land for each land use category. The Town Engineer may exercise reasonable discretion to establish recommended trip generation rates for land use categories consisting of groupings of land uses having similar use and functional characteristics. When the trip generation rate is multiplied by the amount of land, the number of trips, both incoming and outgoing, shall be estimated. Use shall mean the purpose for which a site or structure is arranged, designed, intended, constructed, erected, moved, altered or enlarged or for which either a site or a structure is or may be occupied or maintained. (Ord. No. 1828, § I(37.02.010), 7-2-90) Sec. 15.70.030. Fee determination. (a) The transportation impact fee shall be based upon the unfunded cost of the transportation improvements necessary to upgrade the traffic circulation system as identified in the Town's General Plan and capital improvements plan. (b) The transportation impact fee shall be calculated through development of a Nexus Study that takes into account projected development for various land uses and the cost of the necessary transportation improvements to support the development. The following factors shall be included: (1) For non-residential land uses, the transportation impact fee shall be calculated per 1000 square feet of development. (2) For single and multi-family development, the transportation impact fee shall be calculated on a square foot basis using the average size of housing units based on building permits issued by the Town for the prior three years. (3) The Town will utilize its best efforts to maintain records for the purposes of determining credits that may be due to any particular property. However, except as otherwise specifically provided by law, the ultimate burden and responsibility for 4 of 6 Ordinance January 16, 2024 ATTACHMENT 3 establishing entitlement to any credit shall rest with the person claiming entitlement to a credit. (4) Unusual circumstances may result in this policy placing an undue burden on a developer or landowner. In such cases, the Town reserves the right to enter into an agreement to deviate from the policy as may be approved by the Town Council. (Ord. No. 1828, § I(37.03.010), 7-2-90) Sec. 15.70.035. Amount and payment of fee. (a) The Town Council shall by resolution set forth the specific amount of transportation impact fees. These fees are subject to periodic review by the Town Council. (b) All projects which are determined by the Town Engineer to generate one or more new vehicle trips per day are required to pay the transportation impact fee. (c) The fee shall be paid in full to the Town of Los Gatos prior to issuance of the building permit for the development. If no building permit is required for a change of use, the fee shall be paid in full prior to issuance of a certificate of use and occupancy. (Ord. No. 1828, § I(37.03.015), 7-2-90; Ord. No. 2284, § 1, 6-18-19 ) Sec. 15.70.040. Credits. (a) Developers may request credits toward transportation impact fees based on improvements proposed as part of a development project. Such requests will be reviewed by the Town Engineer in accordance with Town policy. (b) Developments that propose deed restricted low- and very-low-income housing units, as defined by the County of Santa Clara, shall receive 50% credit against the Transportation Impact Fee for those deed restricted units. Sec. 15.70.050. Establishment of trust fund. There is hereby established a special fund into which all transportation impact fees and any interest thereon collected pursuant to this article, shall be deposited in a separate account in a manner to avoid any commingling of the fees with other revenues and funds of the Town. (Ord. No. 1828, § I(37.04.010), 7-2-90) Sec. 15.70.055. Use of monies in trust fund. (a) Money in the fund established in this article shall be used solely for construction of identified transportation improvement projects. 5 of 6 Ordinance January 16, 2024 ATTACHMENT 3 (b) The monies in the fund shall be eligible for expenditure only for projects related to mitigating the cumulative impacts of new development. These funds cannot be used for routine repairs and maintenance. (Ord. No. 1828, § I(37.04.015), 7-2-90; Ord. No. 2284, § 1, 6-18-19 ) Sec. 15.70.060. Preclusion of additional mitigation measures not guaranteed. This article shall not preclude the imposition of additional measures to address significant direct impacts of any development or expansion of use or to address otherwise unfunded transportation improvements, nor shall this article preclude adoption of statement of overriding considerations where desirable and appropriate. (Ord. No. 1828, § I(37.04.020), 7-2-90) SECTION II. Severability. In the event that a court of competent jurisdiction holds any Section, subsection, paragraph, sentence, clause, or phrase in this Ordinance unconstitutional, preempted, or otherwise invalid, the invalid portion shall be severed from this Section and shall not affect the validity of the remaining portions of this Section. The Town hereby declares that it would have adopted each Section, subsection, paragraph, sentence, clause, or phrase in this Section irrespective of the fact that any one or more Sections, subsections, paragraphs, sentences, clauses or phrases in this Section might be declared unconstitutional, preempted, or otherwise invalid. SECTION III. CEQA. This Ordinance is not a project subject to CEQA because it relates to the creation of a government funding mechanism which does not involve any commitment to a specific project which may result in potentially significant physical impact on the environment (CEQA Guidelines Section 15378(b)(4)). Section IV. Publication. In accordance with Section 36937 of the Government Code of the State of California, this Ordinance takes effect 30 days from the date of its passage. The Town Council hereby directs the City Clerk to cause this Ordinance or a summary thereof to be published or posted in accordance with Section 36933 pf the Government Code of the State of California. SECTION V. Effective Date. This Ordinance was introduced at a regular meeting of the Town Council of the Town of 6 of 6 Ordinance January 16, 2024 ATTACHMENT 3 Los Gatos on the 16th day of January, 2024, and adopted by the Town Council of the Town of Los Gatos at its regular meeting on the ____ day of _____ 20 , by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: _______________________________ MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: __________________ ATTEST: ___________________________________ TOWN CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: __________________ ATTACHMENT 4 1 of 2 Resolution 20 - January 16, 2024 ATTACHMENT 5 RESOLUTION 2023-xx RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING THE TRAFFIC IMPACT POLICY WHEREAS, on August 5, 1991, the Town of Los Gatos adopted Resolution 1991- 174 adopting a Traffic Impact Policy; and WHEREAS, Chapter 15, Article VI of the Town of Los Gatos Town Code provides for the establishment of Traffic Impact Mitigation Fees; and WHEREAS, because the fee will be used for transportation improvements, the Policy is being revised to reference “transportation impact fees” rather than “traffic mitigation impact fees;” NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los Gatos that: 1. The Transportation Impact Policy attached as Exhibit A to this Resolution is hereby adopted and the previous Traffic Mitigation Impact Policy is rescinded. 2. Adoption of this updated Policy is not a project subject to CEQA because it can be seen with certainty that it will not have a significant impact on the environment. (CEQA Guidelines Section 15378.) 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, 2023, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: _______________________________ MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: __________________ ATTEST: 2 of 2 Resolution 20 - January 16, 2024 ATTACHMENT 5 ___________________________________ TOWN CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: __________________ 1 COUNCIL POLICY MANUAL. . TITLE: Transportation Impact Policy EFFECTIVE DATE: January 4, 1988 ENABLING ACTIONS: 1991-174; 2014-017, 2016-068; 2017-011 POLICY NUMBER: 1-08 PAGES: 37 REVISED DATES: 8/5/91; 3/24/14; 12/6/16; 3/21/17; 12/07/2021; 01/16/24 APPROVED: PURPOSE To provide guidance to Town staff and the development community in implementing the provisions of the Town Municipal Code, Chapter 15, Article VII, Transportation Impact Fees, and evaluating and mitigating California Environmental Quality Act (CEQA) transportation impacts. SCOPE This Policy is applicable to all land use entitlements, land use projects, and transportation improvements Town-wide. POLICY I. GENERAL CONDITIONS AND APPLICABILITY 1. Projects that are determined by the Town to generate one or more new net Average Daily Trips (ADT) are subject to this Policy. 2. An Accessory Dwelling Unit (ADU) of less than 750 square feet shall be exempted from the requirements of Transportation Analysis and the Traffic Impact Fees. ADU’s of 750 square feet or greater shall be charged as a prorated portion of the single family rate based on square footage. Exhibit A TITLE: Transportation Impact Policy PAGE: 2 of 37 POLICY NUMBER: 1-08 3. Attachment 1- Transportation Analysis (TA) Guidelines establish a process to comprehensively and accurately analyze potential project effects (adverse and beneficial) on transportation facilities and services in the Town of Los Gatos and other jurisdictions. The TA Guidelines serve three primary purposes: • Provide an evaluation for the California Environmental Quality Act (CEQA) significant impacts and mitigation as a part of the environmental analysis process. • Evaluate a project's consistency with the Town's General Plan. • Evaluate a project's consistency with the Santa Clara County Congestion Management Program (CMP). 11. TRANSPORTATION IMPACT FEES 1. All Projects that generate one or more new Average Daily Trips are required to pay Transportation Impact Fees, previously known as Traffic Impact Mitigation Fees. 2. All required Transportation Impact Fees shall be paid in full to the Town in association with and prior to issuance of a building permit. If no building permit is required, the fee shall be paid in full prior to issuance of a certificate of use and occupancy, or similar entitlement. The amount due shall be calculated based on the fee in place as approved by the Town Council by resolution at the time the fee is paid. 3. The fee shall be as set forth by the Town Council by resolution, pursuant to Town Municipal Code, Chapter 15, Article VII, Transportation Impact Fees. 4. Residential Fees shall be calculated by multiplying residential unit size by the per square footage fee in the adopted fee schedule. Non-residential fees shall be charged at the rate in the fee schedule. 5. Credit against Transportation Impact Fees due shall be granted up to the amount of the Estimated Project Cost shown on Attachment 2, Town of Los Gatos Transportation Mitigation Improvements Project List, for any listed projects for which the developer, as a condition of approval, is required to either construct at the developer's sole cost or contribute a fixed or percentage amount of funding toward future construction of the listed improvement. Where construction is fully funded and completed by the developer, said credit shall be equal to the Project Cost as shown in Attachment 2. Where payment is a fixed amount or a percentage of Project Cost, credit shall be equal to the actual amount due, whether the project is constructed by the developer or others. TITLE: Transportation Impact Policy PAGE: 3 of 37 POLICY NUMBER: 1-08 6. No credit shall be given for any public right-of-way dedication required for completion of projects listed on Attachment 2. 7. Credit for existing development shall be determined by trips generated by the site at the time of entitlement application to the Community Development Department. Properties not generating trips at the time of application will not receive credit. Underutilized property or properties not generating a typical amount of trips for the existing unit type may receive a reduced credit based on actual trips generated. All credits under this section shall be at the discretion of the Town Engineer. 8. A fifty percent (50%) credit will be issued for all housing units deed restricted for extremely low- and very low-income categories. Extremely low- and very-low income categories will be as defined by the County of Santa Clara. Prior to issuing any credit on the fee the Community Development Director shall provide verification that the appropriate deed restrictions have been filed. 9. Credit may be given on a case-by-case basis to development other than low- and very- low income units and shall not exceed the impact fee payable. Credit under this section shall only be granted by Town Council. Any request for credit shall be made prior to the payment of the Transportation Impact Fees. No credit shall be given for installation of Town- standard frontage improvements, Project access improvements, or internal circulation improvements. 10. Credit shall only be granted for payment of costs or construction of projects listed in Attachment 2, unless otherwise approved by the Town Council. Ill. VEHICLE MILES TRAVELLED CEQA MITIGATION MEASURES 1. To mitigate VMT environmental impacts, the project shall be conditioned for implementation of mitigation measures in the following categories: • Modify the project's built environment characteristics to reduce VMT generated by the project; • Implement transportation Demand Management (TDM) measures to reduce VMT generated by the project; and/or • Participate in a VMT fee program and/or VMT mitigation exchange/banking program (if they exist) to reduce VMT from the project or other land uses to achieve acceptable levels. 2. The Town is taking a Townwide approach for VMT impact mitigation. Attachment 3, VMT Reduction Actions for the Town of Los Gatos, provides a framework for mitigating VMT in the Town. APPROVED AS TO FORM: i TITLE: Transportation Impact Policy Attachment 1 - Transportation Analysis Guidelines PAGE: 4 of 37 POLICY NUMBER: 1-08 Town of Los Gatos Transportation Analysis Guidelines Table of Contents 1. Introduction ............................................................................................................................. 1 1.1 Intent of TA Guidelines .......................................................................................................... 1 1.2 Environmental Evaluation ..................................................................................................... 2 1.3 Project Types ......................................................................................................................... 2 1.4 CEQA and Non-CEQA Terminology ........................................................................................ 3 2. Determining the Level of Transportation Analysis .................................................................. 3 2.1 CEQA Relief for Projects Consistent with General Plan or Zoning ........................................ 4 2.2 CMP Consistency Screening .................................................................................................. 4 2.3 Recommended Process and Documentation ........................................................................ 4 2.4 Contact with Appropriate Town Staff ................................................................................... 4 2.5 Consultation with Other Jurisdictions ................................................................................... 5 2.6 Project Trip Generation and Trip Reductions ........................................................................ 5 2.6.1 Vehicle Trips ................................................................................................................... 6 2.6.2 Person Trips .................................................................................................................... 6 2.6.3 Establishing Trip Generation Rates for an Unspecified Use ........................................... 6 2.6.4 Credit for Existing Trips – Local Analysis ........................................................................ 6 2.6.4 Credit for Existing Trips – VMT Analysis ......................................................................... 7 2.7 Vehicle Miles Traveled Methods ........................................................................................... 7 3. Transportation Analysis (CEQA) for Land Use Projects ........................................................... 8 3.1 VMT Analysis Methods .......................................................................................................... 8 3.1.1 Regional Transportation Plan/Sustainable Communities Strategy and General Plan Consistency .............................................................................................................................. 9 3.1.2 VMT Assessment ............................................................................................................ 9 3.2 VMT Significance Thresholds ............................................................................................... 11 i 3.3 VMT Mitigation Measures ....................................................................................................11 4. Transportation Analysis (CEQA) for Transportation Projects.................................................12 5. Transportation Analysis per the Town’s Transportation Policies ..........................................12 5.1 Study Area ............................................................................................................................13 5.2 Key Study Elements ..............................................................................................................13 5.3 Data Collection .....................................................................................................................14 5.4 Project Site Access and Circulation Review ..........................................................................16 5.5 Analysis Scenarios ................................................................................................................16 5.6 Analysis Time Periods ...........................................................................................................17 5.7 Multimodal Analysis Methods .............................................................................................18 5.8 Traffic Operations Analysis ...................................................................................................19 5.9 Mobility Deficiency Criteria ..................................................................................................19 5.10 CMP Deficiency Criteria ......................................................................................................20 5.11 Mitigation Improvements ..................................................................................................21 6 1. Introduction Transportation Analysis (TA) Guidelines are routinely established by jurisdictions to assess potential transportation effects of proposed projects on the local transportation system. These guidelines are intended to provide a clear and consistent technical approach to evaluating both land use and transportation infrastructure projects within Los Gatos. These guidelines establish a process to comprehensively and accurately analyze potential project effects (adverse and beneficial) on transportation facilities and services in the Town of Los Gatos and other jurisdictions. This information is essential for decision-makers and the public when evaluating land use development and transportation infrastructure projects. These TA Guidelines serve three primary purposes: • Provide an evaluation for the California Environmental Quality Act (CEQA) significant impacts and mitigation as a part of the environmental analysis process. • Guide the Local Transportation Analysis in evaluating a project’s consistency with the Town’s General Plan Mobility Goals. • Evaluate a project’s consistency with the Santa Clara County Congestion Management Program (CMP). 1.1 Intent of TA Guidelines The Town of Los Gatos General Plan 2040 seeks to “provide a well-connected transportation system that enables safe access for all transportation modes, including pedestrians, bicyclists, motorists, and transit riders of all ages and abilities.” The TA Guidelines support this goal by evaluating new projects against the policies of the latest General Plan. For CEQA-based environmental analysis, these TA Guidelines incorporate the use of vehicle miles traveled (VMT) to disclose the effects of the project on the surrounding environment. Town staff completed an SB 7431 implementation process, which included the preparation of the SB 743 Implementation for the Town of Los Gatos (July 2020) document package. The document package provides detailed technical information pertaining to the options and data considered by the Town of Los Gatos to implement VMT as an impact criterion. The TA Guidelines present the Town’s approach for determining the need for a transportation analysis, its content, and identifying acceptable transportation improvements for land use and transportation projects proposed within Los Gatos. The TA Guidelines establish a transportation analysis protocol for the following: • Environmental analysis 1 Senate Bill 743 (SB 743) changed some of the transportation significance criteria under the California Environmental Quality Act (CEQA) CEQA. Specifically, vehicle level of service (LOS) is no longer used as a determinant of significant environmental impacts, and a vehicle miles traveled (VMT) analysis is required. 7 • General Plan consistency • Congestion Management Program (CMP) evaluation • Mobility deficiency criteria and thresholds • Guidance on acceptable transportation improvements Town staff will review transportation studies and reports based on the process presented in the TA Guidelines. However, each project is unique, and the TA Guidelines are not intended to be prescriptive beyond practical limits. Not all criteria and analyses described in the TA Guidelines will apply to every project. Early and consistent communication with Town staff is encouraged to confirm the type and level of analysis required for each study. 1.2 Environmental Evaluation The TA Guidelines outline the methods and thresholds with which to evaluate projects consistent with the latest CEQA Statue & Guidelines. The latest CEQA Statue & Guidelines include revised Appendix G Checklist questions for transportation impact evaluation. The four questions are as follows: Would the project: a) Conflict with a program, plan, ordinance, or policy addressing the circulation system, including transit, roadway, bicycle, and pedestrian facilities? b) Would the project conflict or be inconsistent with CEQA Guidelines Section 15064.3, subdivision (b)? c) Substantially increase hazards due to a geometric design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? d) Result in inadequate emergency access? 1.3 Project Types A TA is prepared for a project before a discretionary action is taken. The following types of projects, which involve development activity or infrastructure changes in and around the Town of Los Gatos and affect the adjacent transportation system, should be evaluated for TA requirements. • Land use entitlements or changes in use requiring discretionary approval by Los Gatos, which include General Plan amendments, specific plans (and related amendments), zoning changes, use permits, planned developments, and tentative subdivision maps; or any modifications of use that would generate 20 or more new Peak Hour (vehicle) Trips or at the discretion of the Town’s Traffic Engineer • Land use activity advanced by agencies other than Los Gatos that is subject to jurisdictional review under state and federal law, such as school districts, Santa Clara Valley Transportation Authority (VTA) Board of Directors, and others; or advanced within Los Gatos by agencies other than the Town and inconsistent with the Town’s General Plan. 8 • Transportation infrastructure modification or expansion, including capital improvement projects on Town roads, county roads, and state highways that may impact Town facilities and services. 1.4 CEQA and Non-CEQA Terminology To distinguish the CEQA analysis from the non-CEQA analysis (i.e., the local transportation analysis) the analyses apply different terminologies as summarized below in Table 1. Table 1: Comparison of Select CEQA and Non-CEQA Terms CEQA Term Non-CEQA Term CEQA Transportation Analysis Local Transportation Analysis Significance criteria Threshold or performance standard Significant impact Deficiency Mitigation measure Mitigation improvement Baseline Conditions Existing Conditions and Background Conditions Future Year Cumulative Conditions Cumulative Conditions 2. Determining the Level of Transportation Analysis Unless explicitly waived by the Town, a TA may be required when any one of the following conditions is met. • A project has the potential to create a significant transportation environmental impact under CEQA. • A project has the potential to generate daily vehicle miles traveled greater than the Town’s General Plan future year VMT projections. • For local transportation analysis, a project has the potential to generate 20 or more new Peak Hour (vehicle) Trips. • A project that is not consistent with the development density established by existing zoning, community plan, or general plan policies for which an environmental impact report (EIR) was certified, per CEQA Statue & Guidelines Section 15183. • A project will alter physical or operational conditions on a Town pedestrian facility, bicycle facility, transit facility or service, or other transportation facility. • An Accessory Dwelling Unit (ADU) of 750 square feet or smaller shall be exempted from the requirements of Transportation Analysis and the 9 Transportation Impact Fees. In general, a TA is applicable for two to five years. After two or more years of inactivity, a TA may need to be updated to reflect changes in the study environment, including traffic growth and other circulation issues. Nothing in the Transportation Impact Policy shall prohibit or restrict a Project applicant from completing a local transportation study for a Project anticipated to generate less than 20 new Peak Hour trips. 2.1 CEQA Relief for Projects Consistent with General Plan or Zoning Per CEQA Statue & Guidelines Section 15183, projects consistent with a general plan, zoning action, specific plan, and certified environmental impact report (EIR) would not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects. Additionally, projects consistent with a general plan, zoning action, or specific plan where cumulative impact(s) were adequately addressed in a prior EIR would not require further CEQA transportation analysis. As noted below, projects consistent with the Town’s General Plan, as determined by the Community Development Director, will not be required to do any VMT Analysis since the Town is taking a Townwide approach for VMT impact mitigation. 2.2 CMP Consistency Screening Projects should reference the most recent VTA Transportation Impact Analysis (TIA) Guidelines to determine the need for a transportation impact analysis. In most cases, projects that generate fewer than 100 net new peak hour vehicle trips are not required to conduct VTA’s CMP transportation analysis. 2.3 Recommended Process and Documentation In coordination with Town staff, the project applicant shall retain a transportation professional to conduct the TA. The transportation consultant should seek Town acceptance of the scope of work before initiating the analysis. In some cases, review by other affected jurisdictions will be required. Appendix A: Transportation Analysis Report Format Outline contains a recommended outline for the TA document. Each TA will begin by preparing a scope of work that describes the project description, site location, analysis methods, area-wide assumption, study elements, study time periods, and traffic data collection methods. To finalize a TA scope of work for the local transportation analysis, the project applicant will provide an estimate of the project trip generation and trip distribution . These estimates and scope of work should be shared with Town staff to finalize the scope of services. Overall, the TA report will address: 1) environmental analysis, 2) project site access and circulation, and 3) other transportation impacts and traffic deficiencies. 10 2.4 Contact with Appropriate Town Staff To minimize the potential for delays in project processing, it is important for the TA to be prepared in coordination with Town staff. Timely coordination will also ensure that potential transportation improvements and environmental consequences are considered as early as possible in the planning process, as deficiencies and corresponding improvement costs can have a substantial effect on project costs. Coordination should include the following: • A pre-application meeting, which will include a discussion of the TA requirements. • Development of an approved scope of work, which includes trip generation, study area, analysis scenarios and parameters, data requirements, and provisions for pedestrians, bicyclists, and transit users. • Approval of the project trip generation (person and vehicle) and trip distribution. • Review of all assumptions and the results of Existing Conditions analysis. • Review of the administrative draft report, with adequate time for comments. • Review of a draft report, with adequate time for comments. If the TA report information will be incorporated into the transportation and circulation section of an environmental document (e.g., Initial Study, Mitigated Negative Declaration, or Environmental Impact Report), the format of this report may need to be discussed with the environmental consultant, a peer reviewer, and/or Town staff. Upon circulation of the draft environmental document, the format of the final TA report may need to be discussed with the environmental consultant. 2.5 Consultation with Other Jurisdictions If the study area overlaps with other jurisdictions, staff from other jurisdictions must be consulted to verify study locations, the impact significance criteria, and to consider any current development applications. Section 15086 of the CEQA Statue & Guidelines2 shall be followed as the basis for satisfying consultation requirements. In most cases, overlap will occur for roadway system analysis, but may also include impact analysis of active transportation modes (bicycling and walking), as well as transit system facilities and services. 2.6 Project Trip Generation and Trip Reductions Person and vehicle trip generation rates are a way to estimate the number of expected pedestrian, bicycle, transit, and vehicle trips that a proposed development will generate. These rates establish the basis of analysis for a proposed project and its effects on the transportation network. Person trip generation should be reported for walking, bicycle, and pedestrian trips, and vehicle trip generation should be reported for single-occupant, and carpool. Methodologies to estimate project trip generation and trip reductions shall be prepared consistent with the latest VTA TIA Guidelines, with the exceptions described in this document. 2 California Environmental Quality Act Statute & Guidelines, 2020. 11 2.6.1 Vehicle Trips Consistent with the VTA TIA Guidelines, pass-by trips shall not be considered in calculating the 20 new Peak Hour Trip threshold that triggers the requirement for conducting a comprehensive local transportation analysis report. The Institute of Traffic Engineers (ITE) Trip Generation Manual trip generation rates for Specialty Retail Center shall apply to all Specialty Retail. Uses within the Central Business District (C-2 Zone} are expected to change periodically as part of the natural business cycle. For the purpose of Transportation Impact Fees, changes in use without changes in net building square footage within the C-2 Zone shall not be considered to create a traffic deficiency, shall be exempt from this policy, and no fees shall be charged for a change in use. Any increases in building square footage shall pay impact fees at the ITE Shopping Center rate or comparable equivalent rate for the expanded area, as determined by the Town Traffic Engineer. The Town reserves the right to require the project sponsor to conduct local trip generation surveys for select projects, depending on land use and conditions in the field. 2.6.2 Person Trips Person trip generation rates should be developed from empirical studies, person travel survey data, or conversion of vehicle trip rates to person trip rates using a vehicle occupancy factor. In addition, person trip generation by mode may be derived using an approved analysis tool that incorporates data from local trip generation surveys or published trip generation rate data. 2.6.3 Establishing Trip Generation Rates for an Unspecified Use For projects where the ultimate land use is not certain (for example, a large subdivision of flexible commercial-industrial parcels), there are two options for establishing the trip generation rates. • Option 1: Town staff will recommend the use of the highest traffic intensity among all permitted uses to establish traffic deficiencies. • Option 2: Estimates can be made using a lower traffic intensity use if the Town and developer establish a maximum trip allowance. Once a proposed land use has been identified, then: 1) the subdivision trip generation allowance must be monitored by the Town as development occurs; and 2) the TA report may need to be updated. 2.6.4 Credit for Existing Trips – Local Analysis The estimate of new trips generated by the proposed development project may include credit for trips associated with existing uses on the site. Uses are considered as existing if they are actively present on the project site at the time that data is gathered for the transportation impact analysis. Similarly, if a planned (but not constructed) use was already permitted for the site and an improvement(s) was identified and funded, the new TA only needs to assess the 12 effects of additional trips above and beyond the trips for the permitted use. Additionally, certain commercial land uses attract vehicle traffic that currently exists on the roadway, rather than generating new trips. Understanding there are permitted reductions that may be taken under the circumstances listed above, the Town requires that any reductions in project vehicle trip generation are applied according to the latest VTA TIA Guidelines. In calculating new Peak Hour Trips for purposes of determining whether or not a TA report is required pursuant to this Policy, trip credit shall be granted for an existing use or the most recent former use. In calculating new Average Daily Trips for purposes of determining the amount of the Transportation Impact Mitigation Fee due, trip credit shall be granted for an existing use or the most recent former use. Where the property is vacant, the most recent former use shall be used. Where a portion of the space is changing use, credit will apply to the proportionate square footage of the space under review. Where the change in use results in fewer trips than the existing or former use, no credit or refund will be due the applicant. 2.6.4 Credit for Existing Trips – VMT Analysis For the evaluation of vehicle miles of travel, VMT credit for the prior use depends on how the project changes the baseline condition, if the project sponsor had ownership and control of the previous land use, and the reason for stopping the previous land use. Baseline conditions are typically defined at the beginning of an environmental analysis and a CEQA analysis needs to isolate the effects of the project to clearly define the project’s effect on the baseline condition. To receive VMT credit, the project sponsor needs to demonstrate continuous ownership of site, with on-site occupancy paused only due to the redevelopment activity and not because of some economic or other condition outside the control of the project sponsor. However, this credit should only be applied to total project generated VMT and should not be included when calculating a VMT rate. 2.7 Vehicle Miles Traveled Methods As noted, projects consistent with the Town’s General Plan, as determined by the Community Development Director, will not be required to do any VMT Analysis since the Town is taking a Townwide approach for VMT impact mitigation. Although the calculation of VMT is simply the number of cars multiplied by the distance traveled by each car, VMT performance measures can be reported differently. At a minimum, the VMT analysis for Los Gatos will be prepared for two purposes: 13 • Greenhouse gas and air quality analysis using project generated VMT on a VMT per service population basis (residents + employment). • Environmental evaluation by land use and/or transportation project. The project generated VMT from new population and employment growth and the boundary (total) VMT for a specific geographic area will be prepared using the latest Santa Clara Valley Transportation Authority (VTA)-City/County Association of Governments of San Mateo County (C/CAG) Bi-County Model (“VTA Travel Model”). Because emissions rates vary by vehicle speed, the project generated VMT and total VMT should be disaggregated by speed bin (typically in five mile an hour increments of speed from 0 to ~80 miles per hour) to allow different emissions factors to be applied at different speeds, which allows for the preparation of a more refined emissions analysis. 3. Transportation Analysis (CEQA) for Land Use Projects For an environmental analysis, these TA Guidelines incorporate the use of vehicle miles traveled (VMT) to disclose the effects of the project on the environment. Town staff completed an SB 743 implementation process, which included the preparation of the SB 743 Implementation for the Town of Los Gatos (July 2020) document package. The document package provides detailed technical information pertaining to the options and data considered by the Town of Los Gatos to implement VMT as an impact criterion. At its November 17, 2020 meeting, the Town Council adopted Resolution 2020-045, Designating the Use of Vehicle Miles Traveled as the Metric for Conducting Transportation Analyses Pursuant to the California Environmental Quality Act and Establishing the Thresholds of Significance to Comply with California Senate Bill 743. The CEQA Statue & Guidelines allow exemptions to projects meeting certain criteria. Project applicant may review the exemptions before preparing CEQA analysis for projects. Based on the Town’s implementation of SB 743, the following methods should be used to determine VMT impact thresholds and mitigation requirements for land use projects. 3.1 VMT Analysis Methods The Town elected to conduct a complete VMT analysis consistent with the General Plan future year VMT projections based on long-term expectations for air quality and GHG expectations as part of its General Plan EIR, so that it could make specific use of CEQA Statue & Guidelines Section 15183 to streamline project-specific CEQA analysis that is consistent with its General Plan and other Town documents. For the Town of Los Gatos, addressing transportation VMT impacts in the Town General Plan EIR is a useful way of understanding VMT impacts and how VMT reduction should be balanced against other community values related to the environment, social justice, and the community. By conducting a Town-wide VMT impact analysis, the Town is able to develop a program-based VMT mitigation approach. The concept of a ‘program’ approach to impact mitigation is commonly used in a variety of technical subjects, including 14 transportation, air quality, GHG, and habitat. Absent a new program-level VMT mitigation approach, there are limited feasible mitigation options for project sites, and as a result limited ability to reduce VMT. Also, practically speaking, without feasible mitigation, significant VMT impacts would be significant and unavoidable (SAU). Under these circumstances, a project must prepare an EIR, thus adding time and cost to environmental review compared to an initial study/negative declaration (IS/ND) that relies on streamlining offered in the CEQA Statue & Guidelines. Should a project not be consistent with the General Plan, as determined by the Community Development Director, or for some other reason unable to benefit from streamlined CEQA review under CEQA Statue & Guidelines Section 15183, the following sections provide details on how to conduct a complete VMT analysis for land use plans and projects in the Town of Los Gatos. 3.1.1 Regional Transportation Plan/Sustainable Communities Strategy and General Plan Consistency The first step in assessing project impacts is to determine if the project land use is contained within the Town of Los Gatos residential and non-residential land use allocations in the current Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS), and if the project is consistent with the latest General Plan. If the project is not consistent with the RTP/SCS and/or the latest General Plan, amendments to those documents or the project would be needed prior to proceeding with the project review. 3.1.2 VMT Assessment Projects not consistent with the current RTP/SCS or the latest General Plan are required to complete a VMT analysis using the VTA Travel Model to determine if there would be a significant VMT impact. The tools and methodology of the VMT analysis shall be approved by PPW Director (or Traffic Engineer). The impact analysis includes two types of VMT: 1. Total Project Generated VMT – Daily VMT of all vehicle trips, vehicle types, and trip purposes for all project land uses, presented as a total project generated VMT. 2. Project’s Effect on VMT within the Town of Los Gatos. VMT that occurs within the Town of Los Gatos by any type of vehicle. This captures all on-road vehicle travel on a roadway network for any purpose, and includes local trips as well as trips that pass through the area without stopping. If the land use control totals increase between the without and with project conditions in the travel model, these VMT metrics will need to be expressed on a per service population (residents, employees, and other populations generating the VMT) basis to understand the effects of the project between scenarios. The types of VMT analysis are evaluated for the following scenarios: 15 • Baseline Conditions – Conditions in the baseline year for the CEQA analysis, which is most often chosen as the time of notice of preparation (NOP) of an environmental document, but may be chosen as the baseline year of the VTA Travel Model, if land use and transportation network conditions can be considered largely unchanged between the model baseline year and the date of the NOP. For compliance with the CEQA Statute & Guidelines Section 15125(a), the transportation impact analysis must include a description of the physical environmental conditions near the project, as they exist at the time the NOP is published, or if no NOP is published, at the time environmental analysis is commenced, from both a local and regional perspective. Baseline VMT estimates will be prepared using the most recent base year VTA Travel Model. • Baseline with Project Conditions – The project land use is added to the project Transportation Analysis Zone (TAZ), or a separate TAZ may be created to contain the project land uses. A full model run is performed and VMT changes (by metric of choice) are isolated for the project TAZ and across the full model network. The model output must include reasonableness checks of the production and attraction balancing to ensure the project effect is accurately captured. If this scenario results in a less-than- significant impact, then additional cumulative scenario analysis may not be required. • Future Year Cumulative Conditions – Conditions requiring an RTP/SCS and/or General Plan amendment are also required to evaluate the project effect on VMT under Future Year Cumulative Conditions. This scenario buildout of the region’s land use and transportation system also provides the long-range view of future travel patterns. Future Year Cumulative Conditions VMT estimates should be based on the horizon year of the most recent VTA Travel Model, ensuring the model does not already contain the land uses or transportation improvements associated with the project. • Future Year Cumulative with Project Conditions – The project land use is added to the project TAZ, or a separate TAZ is created to contain the project land uses. The addition of project land uses may be accompanied by a reallocation of a similar amount of land use from other TAZs throughout the model area (focusing on Santa Clara County), especially if the proposed project is significant in size such that it would potentially reduce the potential for development throughout the rest of the model area. Land use projects will generally not change the Future Year Cumulative Conditions control totals for population and employment growth within the model area. Instead, they will influence the land use supply through changes in General Plan land use designations and zoning. If project land uses are simply added to the Future Year Cumulative Conditions scenario, then the analysis should reflect this limitation in the methods and acknowledge that the analysis may overestimate the project’s effect on VMT. A full model run is performed and VMT changes (by metric of choice) would be isolated for the project TAZ and across the full model network. The model output must include reasonableness checks of the production and attraction balancing to ensure the project effect is accurately captured. The model output should include the two VMT metrics listed earlier: 1) total project generated VMT, and 2) project’s effect on VMT using the total boundary VMT. Emissions vary by speed bin; disaggregating VMT by speed bin allows different emissions factors to be applied at 16 different speeds, which allows for the preparation of a more refined emissions analysis. The total boundary VMT is needed as an input for air quality, greenhouse gas (GHG), and energy impact analysis, while the project generated VMT metrics are used for the transportation impact analysis. Both “with project” scenarios noted above will summarize the two types of VMT and be compared to the without project condition. Project generated VMT should be extracted from the VTA Travel Model by combining either the origin-destination (for total VMT) or production-attraction (for the other metrics) trip matrices and congested skims (travel distances for each origin-destination pair in the travel mode) from final assignment. The VMT should be adjusted to reflect trips that extend beyond the model boundary. The project’s effect on VMT should be estimated using the Town limit boundary and extracting the total link-level VMT for both the without and with project conditions. Additional VMT metric specifications may be found in the SB 743 Implementation for the Town of Los Gatos (July 2020) document package. If a project is mixed-use (i.e., composed of both residential and retail/office uses), project generated VMT should be extracted for both the total VMT and VMT per service population (residents and employees). 3.2 VMT Significance Thresholds The Town Council adopted Resolution 2020-045, Designating the Use of Vehicle Miles Traveled as the Metric for Conducting Transportation Analyses Pursuant to the California Environmental Quality Act and Establishing the Thresholds of Significance to Comply with California Senate Bill 743. The thresholds balance the Town’s priorities with respect to competing objectives, including Los Gatos’s geographic and transportation context, greenhouse gas reduction goals, interest in achieving the state’s greenhouse gas reduction goals, and the latest General Plan goals and policies related to land use mix, economic development, and housing provision. VMT analyses shall evaluate a project’s VMT impacts based on the thresholds established in the latest Council-adopted resolution. 3.3 VMT Mitigation Measures To mitigate VMT impacts, the project shall be conditioned for implementation of mitigation measures in the following categories:: 1. Modify the project’s built environment characteristics to reduce VMT generated by the project; 2. Implement transportation Demand Management (TDM) measures to reduce VMT generated by the project; and/or 3. Participate in a VMT fee program and/or VMT mitigation exchange/banking program (if they exist) to reduce VMT from the project or other land uses to achieve acceptable levels. 17 The Town is in the process of updating the General Plan and the Draft Environmental Impact Report (DEIR) for the 2040 General Plan was released for public review in July 2021. The 2040 General Plan DEIR identifies significant but unavoidable transportation impacts and the mitigation measures. The Town is taking a Town-wide approach for VMT impact mitigation. Attachment 3, VMT Reduction Actions for the Town of Los Gatos, provides a framework for mitigating VMT in the Town. Attachment 2, Transportation Mitigation Improvements Project List, has many improvements that are consistent with the VMT Reduction Strategies. Evaluation of VMT reductions should be conducted using state-of-the-practice methods, recognizing that many of the TDM strategies are dependent on building occupant performance over time. As such, actual VMT reduction cannot be reliably predicted, and monitoring may be necessary to gauge performance related to mitigation expectations. 4. Transportation Analysis (CEQA) for Transportation Projects Transportation Analysis for transportation projects shall follow the latest CEQA Guidelines and related technical advisories from the Governor’s Office of Planning and Research (OPR). The Thresholds of Significance for all transportation projects are established in the latest Council-adopted resolution. Transportation projects that reduce, or have no impact on, vehicle miles traveled should be presumed to cause a less than significant transportation impact. In 2020 Caltrans adopted its guidance under SB 743. The department’s Transportation Analysis Framework and Transportation Analysis for CEQA provide guidance for assessing induced travel impacts from prospective projects on the State Highway System. CEQA analysis for proposed transportation projects on the State Highway System should also follow Caltrans guidance. 5. Transportation Analysis per the Town’s Transportation Policies The contents and extent of a local transportation analysis per the Town’s General Plan depend on the location and size of the proposed development, the prevailing transportation conditions in the surrounding area, and questions from decision-makers and the public. The Town is committed to a well-connected transportation system that enables safe access for all modes of travel. The methods presented in this chapter include robust data collection and analysis techniques for pedestrian, bicycle, and transit networks, in addition to vehicle circulation. The local transportation analysis shall be prepared consistent with the latest VTA TIA Guidelines, with the exceptions described in this document. 18 5.1 Study Area The study area is determined by evaluating the project location and how it may affect all transportation modes and facilities. It is not simply a map showing where the project is located. Rather, the study area is the area of influence of a project. Each local transportation analysis will consider the adjacent transportation system for site access and circulation of land development projects and street modifications for transportation projects. To properly assess the site access, the Town may require off-site intersection analysis and/or other multimodal analysis. The study area may include the nearest CMP facility to evaluate the proposed project’s conformity with the CMP facilities. Applicants should consult with Town staff early regarding the need for a local transportation analysis based on local or site-specific issues, especially those related to pedestrians, bicyclists, and transit users. 5.2 Key Study Elements The extent and complexity of a local transportation analysis will vary on the project attributes. Table 2 summarizes the basic requirements for a local transportation analysis for every project requiring a complete transportation analysis. Specific significance criteria for each of the listed elements are described in further detail in the Transportation Analysis (CEQA) for Land Use Projects and Transportation Analysis (CEQA) for Transportation Projects sections. To avoid substantial off-site improvements or changes to the project site plan/description after the transportation analysis is completed, a preliminary site plan shall be included for a “fatal flaw” evaluation. Table 2: Local Transportation Analysis – Evaluation Criteria Study Element Evaluation Criteria General Plan Consistency Evaluate the project against goals, policies, and actions set forth in the latest General Plan and other applicable Town plans. Parking Compare the project parking plan with Town and local specific plan standards and discuss how the proposed supply will affect demand for walking, bicycling, and transit modes. If a mix of land uses is proposed on site, or complements adjacent land uses, justify how the development will make use of shared on-site parking. On-Site Circulation Review and evaluate site access locations, turning radii, truck loading areas, emergency access, and other site characteristics with respect to operations and safety for all modes of transportation. Pedestrian Facilities Identify any existing or planned pedestrian facilities that may be affected by the project. Document how the project will affect local pedestrian circulation (e.g., disclose how widening a road or adding a driveway will affect pedestrian safety and walking time). 19 Table 2: Local Transportation Analysis – Evaluation Criteria Study Element Evaluation Criteria Bicycle Facilities Identify any existing or planned facilities that may be affected by the project. Transit Identify any existing or planned transit facilities that may be affected by the project. If appropriate, document how the project improves access to or utilization of transit. For system planning, use crush load as capacity, not seated capacity. Safety Assessment Evaluate project trips added to safety enhancement projects within the study area that are proposed as part of other future safety studies by the Town or other agencies. Trucks (or Other Large Vehicles) For relevant industrial projects, identify the number of truck trips that will be generated, and design facilities necessary to accommodate these trucks. Automated Vehicles or Transportation Network Company Pick- up/Drop-Off For projects where automated vehicles and/or transportation network companies may have a large concentration of pick-up/drop-off, the project site circulation and pick-up/drop-off areas must be reviewed to identify opportunities and constraints of the project site. Modifications to the site circulation and/or pick-up/drop-off may be recommended. Off-Site Traffic Operations All roadway facility analysis and Level of Service should be conducted using the latest version of the Highway Capacity Manual (HCM). Intersection Traffic Control Evaluate unsignalized intersections located within the study area to determine appropriate traffic control. Analysis should include documentation of the appropriateness of a roundabout as an alternative or replacement to a traffic signal. Other Issues Consider other issues on a case-by-case basis (e.g., construction deficiencies, queuing between closely spaced intersections, emergency access, special event traffic) Other Jurisdictional Requirements In situations where several agencies must approve a development or are responsible for affected roadways, the applicant must contact lead and responsible agencies to determine issues to be addressed, scope of study, etc. In general, the applicant will be responsible for analyzing project impacts against appropriate jurisdictional thresholds; however, the analysis method will be determined by the Town in compliance with CEQA, and the impacts will be mitigated consistent with Town standards. 5.3 Data Collection Accurate data is essential to achieve a high level of confidence in local transportation analysis results. Existing transportation data shall be collected using the requirements set forth below. Data should be presented on maps or figures where appropriate. To address the specific needs of each project, the extent of data collected shall be at the discretion of Town staff. 20 • Pedestrian/Bicycle Facilities – Document the existing pedestrian and bicycle facilities serving the project site. Elements will include presence and width of sidewalks, curb ramps, crosswalks, or other pedestrian facilities providing access to the nearest attractors of the project site, such as transit stops, neighborhood attractors and/or complimentary land uses, and bicycle facilities (e.g., routes, lanes, or shared-use paths) within a two-mile bicycling distance of the project site. Document barriers, deficiencies, and high pedestrian-demand land uses, including schools, parking, senior housing facilities, and transit stops or centers. The report will note any deficiencies or enhancements planned or recommended in the latest General Plan or future planning documents. • Transit Facilities and Ridership – Document transit lines nearest to the project site, including stop locations, frequency of service, and any capacity issues. It will also describe transit stop amenities (e.g., benches, shelters, etc.). • Multimodal Peak-Period Turning Movement Counts – Turning movement counts, including vehicles, bicycles, and pedestrians, will be collected for each study time period at all study intersections. The following parameters will be followed (fall and spring days while school is in session are preferred): o Data collection will cover at least two hours to ensure the peak hour is observed. o As applicable, 48-hour machine counts will be used to identify the peak period before conducting other counts or analysis. o Traffic volumes should not be influenced by a holiday, weather, construction, or other temporary change. o The percent of traffic that consists of heavy trucks will be noted/estimated during data collection. o Some projects may require vehicle classification or occupancy counts. Consult with Town staff on a case-by-case basis. o Traffic counts that are older than two years at study initiation will not be used without consultation and approval by Town staff. These counts may need to be adjusted to reflect current year traffic volumes. • Daily Traffic Counts – Collect data for all study roadway segments using the parameters described above for peak period turning movement counts, with the exception of bicycle and pedestrian volumes. Daily counts are used to size facilities (e.g., 2-lane vs. 4- lane) and to identify temporal changes in traffic. • Roadway Geometry – Document existing roadway and intersection geometries and lane configurations. Information from aerial photography and street views should be verified based on a site visit(s). • Intersection Controls and Signal Timings – For use in intersection analysis, intersection control types and signal timings and phasing should be based on signal timing sheets (available from Los Gatos or Caltrans) and verified during site visits. • Five-Year Collision Data – Obtain Statewide Integrated Traffic Records System (SWITRS) through the local California Highway Patrol or through the following web site: www.chp.ca.gov/switrs. 21 • Mode Split – Summarize daily and peak hour mode split for the study area land uses. Data could include U.S. Census journey-to-work data, empirical surveys, or any other available surveys. 5.4 Project Site Access and Circulation Review A detailed site plan review is required for all projects. The local transportation analysis should include a review and summary of findings of the following qualitative and quantitative features. • Consideration of roundabouts are encouraged. Conduct roundabout analysis as required by Town staff. • Existence of any current traffic problems in the local area, such as a high-collision location, non-standard intersection or roadway, or an intersection in need of a traffic signal or a roundabout. • Applicability of context-sensitive design practices compatible with adjacent neighborhoods or other areas that may be impacted by the project traffic. • Proximity of proposed site driveway(s) to other driveways or intersections. • Adequacy of the project site design to convey all vehicle types. • Number and type of parking provided, including vehicle and bicycle parking. • On- and off-street loading requirements. • Adequacy of on-site vehicle, bicycle, and pedestrian circulation and provision of direct pedestrian paths from residential areas to school sites, public streets to commercial and residential areas, and the project site to nearby transit facilities. An important aspect of a TA is to provide sufficient information for the Town to determine that a project is consistent with the latest General Plan and other applicable Town policies, plans, and standards. As such, individual projects must be reviewed against relevant policies contained in the latest General Plan or other plans and policies. Applicants should review the full policy statements in the latest General Plan Mobility Element. If the study area extends into an adjacent jurisdiction, the applicant may be responsible for analyzing project generated operational impacts in these jurisdictions. These include intersection or segment locations in any other jurisdiction, including Caltrans-maintained facilities. The applicant shall refer to current policies in the respective jurisdiction to identify the appropriate significance criteria. 5.5 Analysis Scenarios The range of scenarios includes Existing Conditions, Background Conditions, and Cumulative Conditions. Projects consistent with the latest General Plan will only be required to complete the Existing and Background conditions analysis; where Existing Conditions looks at the effect of the proposed project on the existing system within the next year or two, Background Conditions typically looks at a longer time frame of about three to five years. Inclusion of all three analysis conditions (e.g., Existing, Background, and Cumulative), would typically occur for large development projects, General Plan amendments, specific plans (and related amendments), with Cumulative Conditions having a time horizon of 10 to 20 years. 22 The following analysis scenarios will document existing or future conditions, any deficiencies, and identify deficiencies that will result from the addition of the project. Each scenario will include a qualitative description of transportation facilities for all modes (and any planned enhancements), traffic volumes, and a quantitative analysis of intersection LOS. Key study elements are identified in the Multimodal Analysis Methods section of this chapter. Details regarding each local transportation analysis scenario are presented below. • Existing Conditions – These conditions are based on recent field observations and recent traffic count data. • Existing with Project Conditions – Traffic volume forecasts for roadway analysis reflecting Existing Conditions with traffic generated by the proposed project. For reuse or conversion projects, this may involve accounting for any existing use of the site that remains or will be removed. It should also qualitatively describe how the project will affect transportation for other modes, including compliance or relation to other Town documents. • Background Conditions – Traffic volume forecasts for roadway segment and intersection analysis should reflect Existing Conditions with growth due to approved development that is expected to be operational before or concurrently with the proposed project. This scenario may not be needed if the study area has limited or no approved developments. • Background with Project Conditions – This scenario represents the Background Conditions with vehicle trips added by the proposed project. It provides decision-makers and the public with a view of conditions with all recently approved development and physical improvements, including the proposed project. • Future Year Cumulative Conditions – This scenario represents transportation conditions for all travel modes in the study area reflecting all approved projects, pending projects, or expected development of other areas of Los Gatos designated for growth under the latest General Plan or specific plan. In most cases, the project site will likely be vacant under this scenario. In some cases, this scenario may need to account for any existing uses on the site that could continue, and potential increases in development allowed by ministerial approvals. • Cumulative with Project Conditions – This scenario represents the cumulative future transportation conditions with anticipated changes to the transportation system and the additions of project trips, and provides the long-range view of future traffic operations. 5.6 Analysis Time Periods Based on the land use of the proposed project and upon consultation with Town staff, the study shall analyze traffic operations during the peak one hour of the following time periods: • Weekday morning peak (7:00 – 10:00 AM) • Weekday evening peak (4:00 – 7:00 PM) 23 For some projects, the Town may substitute or require additional peak hour analysis for the following time periods as approved or requested by the Town’s Traffic Engineer: • Weekday afternoon peak (2:00 – 4:00 PM) • Friday evening peak (4:00 – 7:00 PM) • Weekend midday peak (11:00 AM – 1:00 PM) • Sunday or holiday evening peak (4:00 – 7:00 PM) For example, retail commercial projects should evaluate operations for Saturday midday peak hour conditions, in addition to the standard weekday morning and evening peak periods. The determination of study time periods should be made separately for each proposed project, based upon the peaking characteristics of the project generated traffic and peaking characteristics of the adjacent street system and land uses. 5.7 Multimodal Analysis Methods The report should provide a quantitative and/or qualitative evaluation of the project’s potential adverse or beneficial effects on transportation facilities and services related to pedestrians, bicyclists, and transit users. For some projects, more detailed multimodal analysis may be required. Such analysis shall be decided upon in consultation with Town staff and consider new tools, methods, and performance measures, such as those listed below. • Multimodal LOS – The latest Highway Capacity Manual (6th Edition) contains methods for multimodal LOS. • Person Delay – Simulation models can be used to measure system performance in terms of overall person-delay for all modes within a transportation network. This method provides a better decision-making tool for developing improvements to promote efficient movement of people, rather than a particular type of vehicle. • Safety Assessment – Evaluate whether the project adds vehicle trips to a safety improvement identified within the study area. (If a project may affect a Caltrans facility, a safety assessment may be needed for CEQA purposes as well.) • Bicycle Level of Stress (LTS) – Evaluate LTS for all bicycle facilities within a two-mile bicycling distance of the project site. There are several methods for evaluating LTS for bicycle facilities, which generally rely on street widths/number of vehicle lanes, vehicle speeds, daily volumes, and type of bicycle facility to evaluate “low stress” bike networks. The Low-Stress Bicycling and Network Connectivity (2012) report and the National Association of City Transportation Officials (NACTO) Urban Bikeway Design Guide, Second Edition (2014) contains methods for LTS. • Pedestrian Level of Stress (LTS) – Evaluate LTS for all pedestrian facilities providing access to the nearest attractors (e.g., transit stops, neighborhood attractors and/or complimentary land uses) of the project site. Compared to bicycle LTS, there are parallel methods for calculating pedestrian comfort using best practiced from the NACTO Urban 24 Street Design Guide (2013) and pedestrian safety research. As with bicycle comfort, pedestrian comfort is based on a variety of factors ranging from the quality and presence of sidewalks to the conditions of the adjacent roadway (speed, number of travel lanes, frequency of trucks). • Activity Connectedness – Travel time for each mode (e.g., walking, bicycles, transit, and vehicles) between the project and surrounding land uses can be used to gauge the degree of accessibility for a project. The Town desires to minimize travel time to necessary destinations while minimizing unnecessary vehicle travel. Tools such as geographic information systems or online tools (e.g., Index and Walk Score) can be used to gauge this measure specifically for walking. The main idea is to evaluate activity centers and destinations around projects to ensure that walk times to necessary destinations are minimized and the walking experience is comfortable. 5.8 Traffic Operations Analysis Traffic operational deficiencies shall be analyzed using standard or state-of-the-practice professional procedures. The main issues related to traffic operations analysis are the method, input data, and assumptions. These three items influence the level of confidence and the associated level of defensibility of the local transportation analysis. For traffic operations, this requires following the procedures and techniques published in the most recent Highway Capacity Manual (HCM). Traffic Operations Analysis should be conducted according to the latest VTA Traffic Level of Service Guidelines. 5.9 Mobility Deficiency Criteria The overall guiding principal of the General Plan 2040 Mobility Element is to, “[p]rovide a well- connected transportation system that enables safe access for all transportation modes, including pedestrians, bicyclists, motorists, and transit riders of all ages and abilities.” Los Gatos evaluates each transportation mode to identify deficiencies. Local transportation analyses evaluate intersection operations focused on specific traffic issues such as queuing and safety. A greater emphasis is placed on pedestrian, bicycle, and transit facilities and services, in part to reduce traffic congestion and air quality impacts associated with automobile use. Table 5 outlines deficiency criteria for each mode. The mobility deficiency criteria can be used to identify conflicts with existing or planned multimodal facilities. Table 5: Mobility Deficiency Criteria Study Element Deficiency Determination Parking Project increases off-site parking demand above a level required by the Town Zoning Code and/or desirable by the Town. On-Site Circulation Project designs for on-street circulation, access, and parking fail to meet Town standards. Where Town standards are not defined, industry standards [Highway Design Manual, California Manual on Uniform Traffic Control Devices (MUTCD), etc.] should be referenced, as appropriate. 25 Table 5: Mobility Deficiency Criteria Study Element Deficiency Determination Failure to provide adequate accessibility for service and delivery trucks on site, including access to loading areas. Project will result in a hazard or potentially unsafe conditions without improvements. Pedestrian Facilities Project fails to provide safe and accessible pedestrian connections between project buildings and adjacent streets, trails, and transit facilities. Bicycle Facilities Project disrupts existing or planned bicycle facilities or is otherwise inconsistent with the latest General Plan, Bicycle and Pedestrian Master Plan, or other related plans. Project adds bicycle trips along project frontage to an existing facility that needs improvements per the latest BPMP. Transit Project disrupts existing or planned transit facilities and services or conflicts with Town adopted plans, guidelines, policies, or standards. Heavy Vehicles (Trucks and Buses) A project fails to provide adequate accommodation of forecasted heavy traffic or temporary construction-related truck traffic consistent with Town or industry standards (Highway Design Manual, MUTCD, etc.). Off-Site Traffic Operations 95th percentile vehicle queues exceed the existing or planned length of a turn pocket. The proposed project introduces a design feature that substantially increases safety hazards. Signalized Intersection Traffic Control Addition of project traffic causes a signalized intersection to 1) drop more than one level overall or at the worst individual approach delay if it is at LOS A, B, or C or 2) drop at all overall or at the worst individual approach delay if it is at LOS D or below. Unsignalized Intersection Traffic Control Addition of project traffic causes an all-way stop-controlled or side street stop-controlled intersection to 1) operate at LOS E or F overall or the worst-case movement, and 2) meets the Caltrans signal warrant criteria. General Plan Consistency Evaluate the project against mobility, safety, and other related goals, policies, and actions set forth in the latest General Plan. Other Subject Areas Consider other areas on a case-by-case basis (e.g., construction impacts, queuing between closely spaced intersections, emergency access, special event traffic, etc.). Requirements for Other Jurisdictions The project exceeds established deficiency thresholds for transportation facilities and services under the jurisdiction of other agencies. 5.10 CMP Deficiency Criteria To determine consistency with the CMP, off-site intersection analysis may be needed and should be applied according to the latest VTA TIA Guidelines. 26 5.11 Mitigation Improvements All project deficiencies should be addressed consistent with the policies of the latest General Plan Mobility Element. Under these circumstances, the applicant should meet with Town staff to identify transportation improvements that address the deficiencies. Table 6 shows example types of improvements to address transportation deficiencies. Potential improvements may require a more detailed review, often including traffic operations, to demonstrate how they address a specific deficiency. Selected improvements should be identified whether they will be implemented under Existing Conditions, Background Conditions, or Cumulative Conditions. Background Conditions generally reflect conditions at the time of full occupancy of a project. If a transportation improvement is selected to address a deficiency, it should include a description of the benefit to traffic reduction generated by a proposed development and how the improvement contributes to the multimodal transportation system in Los Gatos. In addition, all transportation improvements need to consider whether they have secondary effects to VMT [i.e., whether the improvement is VMT inducing per guidance in the OPR Technical Advisory (December 2018, Pages 20-21)]. The improvement shall not unreasonably degrade bicycle, pedestrian or transit access, and circulation. If a project proposes improvements in response to auto LOS deficiency involving a change to existing roadway or intersection geometry, or changes to signal operations, the TA shall analyze and disclose secondary effects on other modes, i.e., whether the mitigation would affect pedestrian or bicycle conditions or increase transit vehicle delay, per the methodologies in 5.7. Table 6: Example Improvements Study Element Improvement Project Modifications and Transportation Demand Management • Alter density or diversity of project uses or integrate affordable housing • Encourage telecommuting and alternative work schedules • Provide ride-sharing programs to encourage carpooling and vanpooling • Provide local shuttle service • Provide employer-sponsored vanpools or shuttles • Provide pedestrian network improvements • Provide traffic calming measures and low-stress bicycle network improvements • Implement car-sharing (e.g., ZipCar) program • Limit parking supply • Unbundle parking costs from property costs • Institute on-street market pricing for parking 27 Pedestrian and Bicycle Facilities • Provide for access to, from, and through the development for pedestrians and bicyclists • Construct Class I bicycle paths, Class II bicycle lanes, and other facilities • Provide secure bicycle parking and shower amenities • Reduce travel lanes on a street to install a two-way left-turn lane and Class II bicycle lanes • Add corner bulbouts, reduce curb radii, add pedestrian refuges, or implement other walking-related improvements Transit Facilities • Provide bus turnouts, bus shelters, additional bus stops, and park-and-ride lots • Fund increases in transit service Parking Facilities • Design parking facilities to allow free-flow access to and from the street • Provide off-street parking per Town standards or recommendations • Implement shared parking among complementary land uses Traffic Control Modifications • Provide for yield or stop control • Evaluate unsignalized intersections with substandard LOS for conversion to roundabout intersection control or for signalization • Provide coordination/synchronization of traffic signals along a corridor • Provide turn-lane channelization through raised islands • Restrict selected turning movements Street Operations Modifications • Optimize location of access driveway(s) • Provide improvements to traffic signal phasing, or lengthen existing turning pocket • Provide additional through traffic lane(s), right-turn lane(s), and left-turn lane(s) if they do not adversely impact other modes or induce additional vehicle travel • Reduce travel lanes on a street to install a two-way left-turn lane • Address congestion pricing on roads or within a specific area 28 Appendix A: Transportation Analysis Report Format Outline Note: Not all sections are required for all projects. The project applicant shall consult with the Town Traffic Engineer to determine the required sections. 1. Introductory Items • Front Cover/Title Page • Table of Contents, List of Figures, and List of Tables • Executive Summary 2. Introduction • Project description • Project sponsor/contact info • Type and size of development • Site plan (include proposed driveways, roadways, traffic control, parking facilities, emergency vehicle access, and internal circulation for vehicles, bicyclists, and pedestrians) • Location map (include major streets, study intersections, and neighboring zoning and land uses) • Scope of transportation analysis 3. Current Conditions • Description of existing street system within project site and surrounding area • Location and routes of nearest public transit system serving the project • Location and routes of nearest pedestrian and bicycle facilities serving the project • Vehicle Miles Traveled Assessment o Description of baseline VMT estimates (may include site and regional VMT estimates) • Intersection Analysis for Site Access and Circulation Evaluation and CMP Evaluation o Figure of study intersections with peak hour turning movement counts, lane geometries, and traffic control 29 o Map of study area showing average daily traffic (ADT) of study roadways o Table of existing peak hour average vehicle delay and level of service (LOS) 4. Project Trip Generation • Table of project generated trip estimate • Figure/map of trip distribution (in percent) 5. Project Site Access and Circulation Evaluation • Summary of a detailed site review for all modes of travel • Mobility deficiency analysis and summary to vehicle, transit, bicycle, and pedestrian facilities (under Project Conditions and Cumulative Conditions) • Summary of transportation improvements CEQA Transportation Analysis Report Section 6. Vehicle Miles Traveled Assessment • Summary of project generated VMT under Baseline Conditions • Summary of project’s effect on VMT under Future Year Cumulative Conditions • Identification of significant impacts • Discussion of mitigation measures • Evaluation of impacts of mitigation measures 7. Other CEQA Requirements • Summary of conflicts with a plan, ordinance, or policy addressing the circulation system, including transit, roadways, bicycle lanes, and pedestrian paths. Present mitigation measures, as needed. • Evaluation of hazards due to a geometric design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment). Present mitigation measures, as needed. • Emergency access evaluation. Present mitigation measures, as needed. Local Transportation Analysis Report Section 8. Existing with Project Conditions 30 • Maps of study area with applicable peak hour turning movements (Project Only and Existing with Project Conditions) • Table of Existing Conditions and Existing with Project Conditions intersection peak hour average vehicle delay and LOS (or other multimodal performance measure) • Traffic signal and other warrants • Changes/Deficiencies to bike, pedestrian, and transit networks • Findings of project deficiencies • Improvements for project deficiencies (include a map showing physical improvements) • Scheduling and implementation responsibility of improvements • Deficiencies of proposed improvements 9. Background Conditions • Table of trip generation for approved project(s) • Figure and/or table of approved projects trip distribution (in percent) • Map of study area with applicable peak hour turning movements (Background Conditions) • Table of intersection peak hour average vehicle delay and LOS (or other multimodal performance measure) (including queue lengths, etc) • Changes/deficiencies to bike, pedestrian, and transit networks • Traffic signal and other warrants 10. Background with Project Conditions • Similar content to Existing with Project Conditions 11. Cumulative Conditions and Cumulative with Project Conditions • Map of study area with Cumulative Conditions peak hour turning movements • Map of study area with Cumulative with Project Conditions peak hour turning movements • Table of Cumulative Conditions and Cumulative with Project Conditions intersection peak hour average vehicle delay and LOS (or other multimodal performance measure) • Changes/Deficiencies to bike, pedestrian, and transit networks • Traffic signal and other warrants 31 • Findings of project deficiencies • Improvements for project deficiencies (include a map showing physical improvements) • Scheduling and implementation responsibility of improvements • Deficiencies of proposed improvements Additional Sections for Transportation Analysis Report 12. Construction Deficiencies • Trips due to construction workers • Truck trips and truck access routes 13. Phasing Deficiencies (For Large Projects Only) 14. Appendices • List of references • List of authors • Pedestrian, bicycle, and vehicle counts • Technical calculations for all analyses TITLE: Transportation Impact Policy Attachment 2 - Traffic Mitigation Improvements Project List PAGE: 32 of 37 POLICY NUMBER: 1-08 Town of Los Gatos Transportation Mitigation Improvements Project List TITLE: Transportation Impact Policy Attachment 3 - VMT Reduction Strategies PAGE: 33 of 37 POLICY NUMBER: 1-08 VMT REDUCTION STRATEGIES For projects that would generate Vehicle Miles Traveled (VMT), one or more VMT reduction strategies shall be required to reduce VMT of the project. Examples of VMT reduction strategies are provided below. The VMT reduction strategies are organized by their relative scale for implementation (i.e., individual site level, Town-wide level, and regional level). INDIVIDUAL SITE LEVEL  Encourage Telecommuting and Alternative Work Schedules: This strategy relies on effective internet access and speeds to individual project sites/buildings to provide the opportunity fortelecommuting. This strategy would reduce commute VMT but also result in a change in VMTfor other travel purposes; thus, this strategy should consider the net change in the Town’s project-generated VMT.  Provide Ride-Sharing Programs: This strategy focuses on encouraging carpooling and vanpooling by project site/building tenants.  Implement Car-Sharing Program: This strategy reduces the need to own a vehicle or reducesthe number of vehicles owned by a household by making it convenient to access a shared vehicle for those trips where vehicle use is essential. Examples include programs like ZipCar,Car2Go, and Gig.  Provide Employer-Sponsored Vanpool/Shuttle: This strategy relies on employers purchasing orleasing vans or shuttles, and often subsidizing the cost of at least program administration, if notmore. Vanpools typically service employee’s commute to work, while shuttles service nearby transit stations and surrounding commercial centers. Scheduling and rider charges, if any, are within the employer’s purview. A supplemental strategy may include facilitating or enhancing the service by improving the shuttle stops and biking/walking paths to the stops. TOWN-WIDE LEVEL  Provide Bicycle and Pedestrian Network Improvements: This strategy focuses on creating a comprehensive bicycle and pedestrian network within the project and connecting to nearby destinations. Projects in Los Gatos tend to be smaller so the emphasis of this strategy would likely be the construction of network improvements that connect the project site directly to nearby destinations. Alternatively, implementation could occur through an impact fee programor benefit/assessment district based on regional or local plans such as the Bicycle and Pedestrian Master Plan.  Provide Local Transit or Microtransit Solutions: This strategy focuses on providing transit solutions that serve the local circulation needs and connections to key regional destinations. The service would connect to transit hubs, schools, commercial centers, and residential areas to improve transit connectivity and address the “first/last mile” problems. The service may be in the form of a local shuttle, microtransit service using dynamic routing and scheduling, fare subsidies to private transportation network companies (TNCs) or taxi companies, or other service delivery methods. The service may be open to all or target a special population, such as seniors, disabled or students. The implementation of this strategy may require regional or private partnership. TITLE: Transportation Impact Policy Attachment 3 - VMT Reduction Strategies PAGE: 34 of 37 POLICY NUMBER: 1-08  Provide Transit Signal Priority: This strategy would upgrade the Town’s traffic signals along transit corridors to provide transit signal priority to improve transit bus travel time.  Improve Biking and Walking Paths to Bus Stops and Transit Amenities: This strategy improves the biking and walking paths to bus stops, enhances amenities at bus stops such as shelters, benches, and ADA accessible loading areas.  Provide Traffic Calming Measures: This strategy combines the California Air Pollution Control Officers Association (CAPCOA) research focused on traffic calming with new research on providing a low-stress bicycle network. Traffic calming creates networks with low vehicle speeds and volumes that are more conducive to walking and bicycling. Building a low-stress bicycle network produces a similar outcome. One potential change in this strategy over time is that ebikes (and e-scooters) could extend the effective range of travel on the bicycle network,which could enhance the effectiveness of this strategy.  Limit Parking Supply: When combined with companion TDM measures, reduced parking supplydiscourages driving by limiting easy and convenient parking options. Implementation of this strategy may require reducing (or removing) minimum parking requirements and allowing developers to use shared parking strategies.  Unbundle Parking Costs from Property Cost: Unbundling separates parking costs from propertycost, for instance by not including a parking space in a residential unit’s rent, or by requiring employers to lease each parking space separately from the building owner. This strategy ensures that the user understands that the cost of driving includes parking and can encourage people to use an alternative mode to save money.  Implement Market Price Public Parking (On-Street): This strategy focuses on implementing a pricing strategy for parking by pricing all on-street parking in central business districts, employment centers, and retail centers. Priced parking would encourage “park once” behaviorand may also result in area-wide mode shifts. REGIONAL LEVEL  Increase Density: This strategy focuses on increasing density of land uses, where allowed by the General Plan and/or Zoning Ordinance, to reduce distances people travel and provide more travel mode options. This strategy also provides a foundation for many other strategies. For example, densification increases transit ridership, which justifies enhanced transit service.  Increase Diversity of Urban and Suburban Developments: This strategy focuses on inclusion of mixed uses within projects or in consideration of the surrounding area to minimize vehicle travelin terms of both the number of trips and the length of those trips.  Increase Transit Accessibility: This strategy focuses on encouraging the use of transit by locating a project with high density near transit. A project with a residential/commercial center designed around a bus station is referred to as a transit- oriented development (TOD).  Integrate Affordable and Below Market Rate Housing: This strategy provides greater opportunities for lower income families to live closer to job centers since TITLE: Transportation Impact Policy Attachment 3 - VMT Reduction Strategies PAGE: 34 of 37 POLICY NUMBER: 1-08 income effectsprobability that a commute will take transit or walk to work.  Increase Transit Service Frequency/Speed: This strategy focuses on improving transit service convenience and travel time competitiveness with driving. Given existing land use density in LosGatos, this strategy may be limited to traditional commuter transit where trips can be pooled at the start and end locations, or it may require new forms of demand-responsive transit service. Note that implementation of this strategy would require regional or local agency implementation, substantial changes to current transit practices, and would not likely be applicable for individual development projects.  Implement Area or Cordon Pricing: This strategy focuses on implementing a cordon (i.e., boundary) pricing scheme, where a cordon is set around a specific area to charge a toll to enterthe area by vehicle. The cordon location is usually the boundary of an area with limited points of access. The cordon toll may be constant, applied during peak periods, or be variable, with higher prices during congestion peak periods. The toll can also be based on a fixed schedule or be dynamic, responding to real-time congestion levels. Note that implementation of this strategy requires alternative modes of travel that are available and reliable, such as high-qualitytransit infrastructure. TITLE: Transportation Impact Policy Attachment 4 - Definitions PAGE: 36 of 37 POLICY NUMBER: 1-08 DEFINITIONS: Land use entitlements shall mean entitlement changes in use requiring discretionary approval by Los Gatos, which include General Plan amendments, specific plans (and related amendments), zoning changes, use permits, planned developments, and tentative subdivision maps. Land Use Projects or Development shall mean residential or nonresidential improvements on a site. Existing development shall mean any already existing habitable residential or nonresidential building or projects which rebuild or remodel the existing development without increasing the trips generated. No fee shall be charged for development already existing. Expansion of use, to determine traffic increases, shall include any increase in the number of living units, gross floor area in a nonresidential development and/or any intensification of use which increases trips generated. Transportation improvements shall mean those improvements to the transportation facilities and related actions necessary to implement the transportation element of the Town's general plan and any applicable specific plan. Site shall mean a plot of ground consisting of one (1) or more lots or parcels on which a common improvement is proposed or exists. Trip generation rate shall mean the number of vehicle trips over a weekday twenty-four-hour period generated by a particular type of land use and shall be expressed in terms of the number of acres or square feet of land for each land use category. The Town Engineer may exercise reasonable discretion to establish recommended trip generation rates for land use categories consisting of groupings of land uses having similar use and functional characteristics. When the trip generation rate is multiplied by the amount of land, the number of trips, both incoming and outgoing, shall be estimated. Average Daily Trips (ADT) shall mean the total number of trips, both in-bound and out-bound, within a 24-hour weekday period, generated by a particular use or development. Pass-By Trip: Trips generated by the proposed Project that would be attracted from traffic passing the proposed project site on an adjacent street that contains direct access to the Project. Peak Hour Trips shall mean vehicle trips, both in-bound and out-bound, occurring during a 60- minute period either during the A.M. Peak (7 A.M. to 9 A.M.) or the P.M. Peak (4 P.M. to 6 P.M.), generated by a particular use or Project. TITLE: Transportation Impact Policy Attachment 4 - Definitions PAGE: 37 of 37 POLICY NUMBER: 1-08 Specialty Retail. Specialty Retail uses are defined as walk-in and impulse businesses such as juice bars, yogurt shops, coffee shops, donut shops, and similar uses which do not generally serve meals and have limited or no seating. Specialty Retail uses are defined under this policy for purposes of establishing trip generation data and this definition does not provide any land use or zoning guidance. Use shall mean the purpose for which a site or structure is arranged, designed, intended, constructed, erected, moved, altered or enlarged or for which either a site or a structure is or may be occupied or maintained. Vehicle Trip End shall mean an incoming or outgoing trip going to or coming from anywhere within the Town or outside the Town. CEQA shall mean the California Environmental Quality Act. These terms are reserved for definitions per the CEQA Guidelines: significance criteria, significant impact, and mitigation measures. Local Transportation Analysis shall mean analysis to assess potential mobility deficiencies caused by new developments on the local roadway performance, following the Town’s transportation policies. These terms are reserved for Local Transportation Analysis: threshold or performance standard, deficiency, and mitigation improvement. Vehicle Miles Traveled (VMT) is a metric that accounts for the number of vehicle trips generated times the length or distance of those trips. VMT is an accessibility performance metric that evaluates the changes in land use patterns, regional transportation systems, and other built environment characteristics. Level of Service (LOS) is a metric that assigns a letter grade to network performance. The typical application is to measure the average amount of delay experienced by vehicle drivers at an intersection during the most congested time of day and assign a report card range from LOS A (fewer than 10 seconds of delay) to LOS F (more than 80 seconds of delay). Vehicle level of service is used to measure vehicle mobility. This Page Intentionally Left Blank TITLE: Transportation Impact Policy ENABLING ACTIONS: 1991-174; 2014-017, 2016-068; 2017-011 APPROVED: PURPOSE POLICY NUMBER: 1-08 PAGES: 37 REVISED DATES: 8/5/91; 3/24/14; 12/6/16; 3/21/17; 12/07/2021;01/16/24 To provide guidance to Town staff and the development community in implementing the provisions of the Town Municipal Code, Chapter 15, Article VII, +Transportation raffi€ Impact Mitigation Fees, and evaluating and mitigating California Environmental Quality Act (CEQA) transportation impacts. SCOPE This Policy is applicable to all land use entitlements, land use projects, and transportation improvements Town-wide. POLICY I.GENERAL CONDITIONS AND APPLICABILITY 1.Projects that are determined by the Town to generate one or more new net Average Daily Trips (ADT) are subject to this Policy. 2.An Accessory Dwelling Unit (ADU) of less than 750 square feet shall be exempted from the requirements of Transportation Analysis and the Traffic Impact Fees. ADU's of 750 square feet or greater shall be charged as a prorated portion of the single family rate based on square footage. g_ The Town Council may exempt housing developments for very lo•.iv, lo•.v, 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. ATTACHMENT 6 This Page Intentionally Left Blank