13 Staff Report.Rescind TIF with attachments
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Parks and Public Works
Director, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2024
DATE: April 11, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution Rescinding Resolution Nos. 2024-003, 2024-004, and
2024-005 Regarding the Transportation Impact Fee
RECOMMENDATION:
Adopt a Resolution rescinding Resolution Nos. 2024-003, 2024-004, and 2024-005 Regarding
the Transportation Impact Fee, leaving the Town’s previously adopted Traffic Impact Mitigation
Fees in effect pending further review.
REMARKS:
On January 16, 2024, the Town Council adopted resolutions relating to an updated
transportation impact fee (TIF), which was intended to replace the Town’s prior traffic impact
mitigation fee. These resolutions included Resolution 2024-003 (adopting the nexus study for
the 2023 Update to the Transportation Impact Fee), Resolution 2024-004 (formally updating
the Transportation Impact Fee and amending the 2023-2024 Master Fee Schedule to include
the updated fee), and Resolution 2024-005 (amending the Town’s Traffic Impact Policy).
In addition, the Town Council also introduced a proposed new ordinance that would have
amended Town Code Section 15, Article VII, entitled “Traffic Impact Mitigation Fees,” to instead
provide for the Town’s imposition of the proposed updated “Transportation Impact Fee,” as
contemplated in the three resolutions.
Public comment on the January agenda item raised a question regarding the methodology used
in the nexus study in support of the updated fee. Staff is gathering information regarding the
methodology used. In the meantime, the proposed ordinance has not yet been brought back to
the Council for a second reading and final adoption, and the Town’s existing Code provisions
relating to its Traffic Impact Mitigation Fees have remained in effect. The Resolutions updating
the fee, nonetheless, took effect on March 15, 2024. Since this date, any new transportation
impact fees collected have been set aside and have not been allocated to capital projects.
PAGE 2 OF 3 SUBJECT: Resolution Rescinding Resolutions Regarding the Transportation Impact Fee DATE: April 11, 2024
REMARKS (continued):
On March 19, 2024, the Town Council discussed the possible suspension of the TIF and deferred
action until April 2, 2024. On April 2, 2024, the Town Council discussed several options for
potentially modifying the nexus study that was used to determine the fee. The Council
provided direction to explore a couple of the options and return to Town Council with the
results. The Council did not consider suspension or rescission at the early April meeting.
Also on April 2, 2024, the Town Council adopted a Resolution approving the Comprehensive Fee
Schedule for Fiscal Year 2024/25. The updated fee schedule retains the former Traffic Impact
Mitigation Fees (rather than the updated Transportation Impact Fee reflected in the three
Resolutions).
To avoid confusion, staff recommends that the Council rescind the Resolutions that established
the updated Transportation Impact Fee, to be reconsidered after Town staff returns to the
Council with the additional analysis and options. (Attachment 1).
ALTERNATIVES:
Alternatively, the Council may prefer to suspend rather than fully rescind the Resolutions
regarding the TIF (Attachment 2) or retain the new fee. If Council decides to retain the new fee,
it will still need to adopt the related Ordinance that was introduced last January, and the
2024/25 fee schedule would need to be amended by future Council action.
If a Council Member would like to consider one of these alternatives, this agenda item will need
to remove this item from the Consent Calendar. If the Council approves the Consent Calendar
without removing this item, the Council would be rescinding the three resolutions as
contemplated in the draft resolution included as Attachment 1.
NEXT STEPS:
If the January 16th resolutions are rescinded or suspended, the former traffic impact fee will
come back into effect immediately. Again, the Comprehensive Fee Schedule for Fiscal Year
2024/25 as approved by the Council on April 2 already contemplates this.
COORDINATION:
This report was coordinated with the Department of Parks and Public Works, Town Attorney,
and outside legal counsel.
PAGE 3 OF 3 SUBJECT: Resolution Rescinding Resolutions Regarding the Transportation Impact Fee DATE: April 11, 2024
FISCAL IMPACT:
As recommended, this action would result in a return to the former traffic impact fee.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Resolution Rescinding Resolution Nos. 2024-003, 2024-004, and 2024-005
2. Resolution Suspending Resolution Nos. 2024-003, 2024-004, and 2024-005
This Page Intentionally Left Blank
1 of 2
Resolution 2024 - 4/16/24
RESOLUTION 2024-xx RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS RESCINDING
RESOLUTION NOS. 2024-003, 2024-004, AND 2024-005
WHEREAS, on January 16, 2024, the Town Council adopted Resolution Nos. 2024-003,
2024-004, and 2024-005, to replace the Town’s existing Traffic Impact Mitigation Fee with a
new updated Transportation Impact Fee; and
WHEREAS, the Town received a question regarding the methodology used in the nexus
study in support of the updated transportation impact fee; and
WHEREAS, on April 2, 2024, the Town Council directed staff to study several options to
update the methodology used in the nexus study and return to Town Council with the results;
and
WHEREAS, staff recommends rescinding Resolution No. 2024-003 Adopting the Nexus
Study for the 2023 Update to the Transportation Impact Fee, Resolution No. 2024-004 Updating
the Transportation Impact Fee and Amending the 2023-2024 Master Fee Schedule to Include
the Updated Fee, and Resolution No. 2024-005 amending the Traffic Impact Policy, which
rescissions will have the effect of leaving in place the Town’s previous Traffic Impact Mitigation
Fee;
NOW, THEREFORE, BE IT RESOLVED, the Town Council rescinds Resolution Nos. 2024-
003, 2024-004, 2024-005. The Town Council directs that the Traffic Impact Mitigation Fees
continue to be collected in the same amounts that existed prior to the adoption of these
Resolutions, as previously approved by the Town Council pursuant to Section 15.70.035 of the
Town Code.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 16th day of April, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN: ATTACHMENT 1
2 of 2
Resolution 2024 - 4/16/24
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: __________________
1 of 2
Resolution 2024 - 4/16/24
RESOLUTION 2024-xx RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS SUSPENDING
RESOLUTION NOS. 2024-003, 2024-004, AND 2024-005
WHEREAS, on January 16, 2024, the Town Council adopted Resolution Nos. 2024-003,
2024-004, and 2024-005, to replace the Town’s existing Traffic Impact Mitigation Fee with a
new updated Transportation Impact Fee; and
WHEREAS, the actions associated with the updated transportation impact fee included
the Council adoption of Resolution No. 2024-003 Adopting the Nexus Study for the 2023
Update to the Transportation Impact Fee, Resolution No. 2024-004 Updating the
Transportation Impact Fee and Amending the 2023-2024 Master Fee Schedule to Include the
Updated Fee, and Resolution No. 2024-005 amending the Traffic Impact Policy; and
WHEREAS, the Town received a question regarding the methodology used in the nexus
study in support of the updated transportation impact fee; and
WHEREAS, on April 2, 2024, the Town Council directed staff to study several options to
update the methodology used in the nexus study and return to Town Council with the results;
and
WHEREAS, the Town Council now intends to suspend the three Resolutions pending
such further study, which suspension will have the effect of leaving in place the Town’s
previous Traffic Impact Mitigation Fee.
NOW, THEREFORE, BE IT RESOLVED, the Town Council suspends Resolution Nos. 2024-
003, 2024-004, 2024-005, pending the results of the additional analysis pertaining to the
methodology used in the nexus study and a future Town Council discussion of this topic. The
Town Council directs that the Traffic Impact Mitigation Fees continue to be collected in the
same amounts that existed prior to the adoption of these Resolutions, as previously approved
by the Town Council pursuant to Section 15.70.035 of the Town Code.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 16th day of April, by the following vote:
ATTACHMENT 2
2 of 2
Resolution 2024 - 4/16/24
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: __________________