Item 8 Staff Report Accept Report in Response to Letter from David A. Gibbons, Vice President, Barry Swenson Builder Regarding Traffic Impact Mitigation Fees for 15400 National AvenueTOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: October 14, 1994
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT:
COUNCIL AGENDA 4s°
DATE: 10/17/94
ITEM NO. C'1
ACCEPT REPORT IN RESPONSE TO LETTER FROM DAVID A. GIBBONS, VICE
PRESIDENT, BARRY SWENSON BUILDER REGARDING TRAFFIC IMPACT MITIGATION
FEES FOR 15400 NATIONAL AVENUE.
RECOMMENDATION:
Deny the request to reduce the traffic mitigation fee for 15400 National Avenue
BACKGROUND:
The Town approved the application for constructing a medical office building at 15400 National Avenue in
1991. The approval allowed for payment of the traffic mitigation fee at the time of occupancy rather than
building permit. The condition also provided that the fee to be paid would be the fee in effect at the time
the fee is due. The fee based on the rules in effect in 1991 would have been $12,033; the fee based on
current rules is $70,320. You will recall that the fee was changed to correct the inequity that high traffic
generators were not paying their fair share of traffic mitigation costs and were, therefore, being subsidized
by other taxpayers. The builder has requested a partial occupancy of the building and was shocked to learn
of the amount of the increased fee. David A. Gibbons, Vice president of Barry Swenson Builder, submitted
a letter on October 6,1994 (Attachment 1) requesting that the Council reduce the traffic mitigation fee to the
1991 fee plus interest, based on the consideration that they were required to pay $38,360 more for the
installation of the National Avenue/Los Gatos Road traffic signal than their proportionate share. Mr Gibbons
paid the $70,320 fee under protest on October 12, 1994 (see Attachment 2) and a certificate for partial
occupancy was issued on October 14, 1994.
PREPARED BY:
LEE E. BOWMANt7`'
PLANNING DIRECTOR
(Continued on Page 2)
LEB:sm 10/14/94 2:19 pm
SM08\CNCLRPTS\NATIONAL
ATTACHMENTS: (See page 3 for list of attachments)
DISTRIBUTION: (See page 3 for distribution list)
Reviewed by: Attorney Clerk v Finance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: 15400 NATIONAL AVENUE - TRAFFIC IMPACT MITIGATION FEES
October 14, 1994
One of the Planning Commission's major concerns when the project was approved in 1991 was that the
testimony/documentation showed about 86-125 increase in peak hour trips and about 875 new vehicle
trips/day. The public testimony, largely through the Cordova Oaks Homeowners Association, expressed
concern about large traffic increases and parking concerns and their cumulative impacts on the area.
Commissioner Abkin saw three possible overriding community benefits from the project to address the
required finding of community benefit that would permit such an increase:
1. Extra contribution for the construction of the National Avenue/Los Gatos Road traffic signal;
2. Extra parking provided on -site for neighborhood parking;
3. The unique use of the building for Sports medicine and educational services.
Commissioner O'Laughlin indicated it was a close call. This application stretched the traffic policy to the
breaking point, but in weighing benefit vs. traffic and the deficient current use, he felt he could support the
amended application.
The Commission's action on a 5-3 vote in a motion made by Commissioner Morgan and seconded by
Commissioner O'Laughlin included the following findings of overriding benefit to offset traffic impacts:
1. Sports medicine facility is needed;
2. The facility will help high schools, have free clinics, assist little league, high school coaches and club
sports;
3. Educational benefits in programs on sports, health, drugs, and nutrition will aid the community;
4. Biomedical lab;
5. Library on sports medicine,
and with the recommendation that Council consider addressing the traffic/parking problems in area, and
on condition that the Applicant pay the entire cost of the signal at National and Los Gatos -Almaden up to
$40,000 and that Applicant record cross -parking easements with Good Samaritan as offered in SMR letter
(Attachment 3).
The Commission then asked that revising the traffic mitigation impact fee policy to be based on a per trip
charge be considered on a future agenda.
The Commission's decision was appealed by several neighbors who were concerned about the traffic and
driveway access. The Council upheld the Commission's action on March 4, 1991 with a 3-2 vote.
Councilmembers Carlson and Ventura voted against the motion due to their concerns about too much traffic
being a burden on the neighborhood. The Council reconsidered the application on two other occasions,
one regarding the location of driveways and the other to correct the condition regarding the National
Avenue/Los Gatos Almaden Road traffic signal. According to Barry Swenson Builder, who purchased the
site from SMR, they reviewed all of the applicable conditions before purchase.
Mr. Gibbons notes in his letter that the Town did not notify them of the changes in the traffic mitigation
impact fee policy. As the Council is aware, the amendments to the traffic mitigation impact fee were under
discussion over a two year period at noticed public hearings.
CONCLUSION:
Even though this project enjoyed the privilege of not having to pay the traffic mitigation fee until the
occupancy permit, Swenson could have paid the original fee at any time and if they had been aware of the
changes being considered by the Council, would have probably paid the fee early to avoid the increase.
To reduce the fee at this time does not seem prudent since one of the major considerations for approving
the project in the first place (sports medicine clinic) no longer exists.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: 15400 NATIONAL AVENUE - TRAFFIC IMPACT MITIGATION FEES
October 14, 1994
FISCAL IMPACT:
If the fee is reduced, the maximum amount to be returned from the traffic mitigation deposit account would
be $58,287.00.
ATTACHMENTS: 1. Letter from Barry Swenson Builder dated October 5, 1994
2. Letter from Barry Swenson Builder dated October 12, 1994
3. Desk Item from Planning Commission Meeting December 12, 1990
DISTRIBUTION:
David A. Gibbons, Vice President, Barry Swenson Builder, Medical Division
Luke Stamos
Planning Commission
BARRY SWENSON BUILDER
MEDICAL DIVISION
701 North First Street San Jose, CA 95112
408.287.0246 Fax 408.998.1737
October 5, 1994
Town Council Members
Town of Los Gatos
110 East Main Street
Los Gatos, CA 95031
Re: 15400 National Avenue
Site Approval #S-67-58A
Dear Council Members:
OCT 6 /99q
HAND DELIVERED
In early 1992 Barry Swenson Builder acquired the subject property. At that time the
property, which was an abandoned convalescent hospital, had received Architectural and
Site Approval for a sports medicine clinic. Subsequently, Barry Swenson Builder applied for
a Minor Modification of the previous Architectural and Site Approval, which changed the use
of the building to a cancer treatment center. This Modification was granted by the DRC on
October 27, 1992.
Recently we requested a Certificate of Occupancy for the project, which was followed by a
letter from Mr. Lee Bowman dated September 30, 1994. There were two issues addressed
in the letter. One was related to landscaping, and has since been resolved, The other is in
regards to the recently revised Traffic Impact Mitigation Fee.
The changes to the Traffic Impact Mitigation Fee adopted on April 4, 1994 have had a major
effect on us. Instead of $12,033, we are now facing a Fee of $70,320, a 584% increase. We
were never advised by the Town of this drastic (approximately six -fold) increase until now.
We were aware that the Conditions of Approval provided for a potential increase, but never a
fee increase of this magnitude.
This surprise comes just as we are trying to obtain a Certificate of Occupancy for the project,
and unfortunately Phis is not the first large, unexpected, fee increase we have encountered
on this project. In ,the same Conditions of Approval there was a condition for us to pay 25%
of the cost to install a traffic signal at the intersection of Los Gatos - Almaden Road and
National Avenue. Prior to our receipt of a building permit, we were informed by the Town
that there had been a "clerical" error made in our Conditions of Approval, and the percentage
we were to pay for the installation of the traffic signal was 100%. After further investigation
by staff, it was determined that funds had already been collected from other developments in
the area to partially fund the new signal. Based on the amount of these funds, we were
obligated to pay 65% (not -to -exceed $64,750). As it later turned out, we actually paid
$62,335, instead of the original $24,750.
ATTACHMENT 1
A Division of Green Valley Corporation
Contractor's License Number 342751
Town Council Members
October 5, 1994
Page 2
It is strange to us that the Condition of Approval requiring the payment of the Traffic Impact
Mitigation Fee stated, that the Fee is to be paid at occupancy, when the Town's policy which
was reflected in the Staff Report dated January 23, 1991 stated specifically that these fees
are collected at the time of Building Permit issuance.
Both Lee Bowman and Luke Stamos (our consultant) have reviewed the record of the
original Planning Commission meeting, and the minutes do not reflect a request or a
requirement to pay the Fee at occupancy. We question the wording of this Condition of
Approval, and wonder could it be, that another "clerical" error was made in drafting the
Conditions?
Today, Luke Stamos and I met with Lee Bowman and David Knapp to try to come up with
some solution to this problem. It was suggested that we write this letter respectfully
requesting some consideration. Particularly since we have the only project that is in the
position of paying the Traffic Impact Mitigation Fee at occupancy, thereby becoming
unknowingly exposed to the newly adopted Fee structure.
We request that we be permitted to pay the original fee that would normally have been
collected at the time we received our Building Permit in the amount of $12,033. (plus a
reasonable amount of interest from the date of building permit issuance to the date of
occupancy). At the very least, consideration should be given to the fact that we were
required to pay an additional 40% more ($38,360.) towards the installation of the traffic
signal.
Thank you for your consideration.
Sincerely,
BARRY SWENSON BUILDER - Medical Division
A\ \DM\i\--
David A. Gibbons
Vice President
cc: Lee Bowman
David Knapp
Luke Stamos
BARRY SWENSON BUILDER
MEDICAL DIVISION
701 North First Street San Jose, CA 95112
408.287.0246 Fax 408.998.1737
October 12, 1994
Mr. Lee Bowman
Planning Director
Town of Los Gatos
110 East Main Street
Los Gatos, CA 95031
RE: 15400 National Avenue
Site Approval # S-67-58A
Dear Mr. Bowman,
RECEIVED
O C T 1 2 1994
TOWN OF LOS GATOS
BUILDING/ENGINEERING SERVICES
BY
This letter is to formally request the issuance of a Certificate of Occupancy for
the above project.
Pursuant to your letter dated September 30, 1994, we are enclosing a check in
the amount of $70,320.00 for payment of the new Traffic Impact Mitigation fees.
As you are aware, we are still at issue with the new fee structure and how it has
been applied, as outlined in my letter to the Town Council Members, dated
October 5, 1994.
In Tight of the fact that we have requested an opportunity to present this issue at
the next Town Council Meeting, we request that the fee submitted herewith be
held separate from the general fund pending resolution with the Town Council.
Thank you for your assistance.
Sincerely,
BARRY WENSON4 BUILDER, Medical Division
David A. Gibbon
Vice President
cc: Luke Stamos
A Division of Green Valley Corporation
Contractor's License Number 342751
/'CHMENT 2
1
'� ., .(i iits of the Project to The C of Los i r iN(, commiSSION 12/12/90
SPORTS �;t;
MEDICINE Q`0 1 0 1''O
RESOUfPS,-,F
LT;
GENERAL PARTNERS
DOUGLAS BLATZ, M.D.
JAMES COLVILLE, M.D.
LEROI B. GARDNER, M.D.
MICHAEL HENEHAN, D.O.
GRADY JETER, M.D.
MARTIN TRIEB, M.D.
OFFICES
841 BLOSSOM HILL RD.
SUITE 102
SAN JOSE, CA 95123
(408) 224-3224
2430 SAMARITAN DRIVE
SAN JOSE, CA 95124
(408) 371-6771
Surrounding Communities Gatos v
15400 NATIONAL AVE.
S-67-58A & ND-90-7
AGENDA ITEM 16
Sports Medicine Resources (SMR), the physician group
developing this project, believes that our project will have
numerous positive benefits for the Los Gatos Community.
The physicians in our group have a long standing
commitment to providing service to the Los Gatos
Community. In fact three of the physicians in our group live
in Los Gatos.
Listed below are some of the benefits we feel this project
will bring to the Los Gatos Community:
1) Continued support for community programs. We
provide the medical coverage for high school and
community college athletic programs, we do extensive
volunteer work by providing medical coverage for 10K
races, triathalons, charity events and other community
sponsored activities. SMR has been very active in working
with the County Medical Society to develop safe high school
athletic programs and sponsor educational programs for
local physicians, athletic trainers and coaches. We offer a
sports injury clinic which is free of charge to local high
school students.
2) Attract professional teams to the South Bay Area. One
of the necessary services that professional teams require is
experienced medical personnel. Developing the appropriate
facilities to care for the professional athlete will help
promote the growth of professional sports activities in the
South Bay Area.
3) Provide state of the art sportsmedicine and
rehabilitation services. The same services which will be
developed for the professional teams will also be available
to the team sport, high school, college and weekend
athletes. These would include a sophisticated biomechanics
lab to aid in the diagnosis and treatment of athletic and
industrial injuries, state of the art rehabilitation services,
medical care designed for the specific needs of the athlete
and educational resources for health promotion programs.
These services will compliment the proposed development
of a focus on orthopedics at Samaritan Oaks Hospital
(formerly Mission Oaks Hospital)
ATTACHMENT 3
October 17, 1994
Los Gatos, California
NATIONAL AVE 15400/TRAFFIC IMPACT/MITIGATION FEES (08.40)
Luke Stamis, 6118 Oak Forest Way, San Jose, Planning Consultant with Ruth & Going,
representing Barry Swenson, asked for a continuance so as to have time to review the new traffic
mitigation fees.
Motion by Mr. Blanton, seconded by Mr. O'Laughlin, that Council continue this item to
November 7, 1994. Carried unanimously.
FEDERAL MANDATE ACCOUNTABILITY AND REFORM ACT
NATIONAL UNFUNDED MANDATE WEEK/OCTOBER 24-30 (09.17)
Motion by Mr. Blanton, seconded by Mr. O'Laughlin, that Council authorize the Mayor to sign
letters to our congressional delegation requesting relief from future unfunded federal mandates
and proclaim the week of October 24-30, 1994 as National Unfunded Mandates Week. Carried
unanimously.
9321 PROJECT/ENERGY CONSERVATION MODIFICATIONS/RESOLUTION 1994-147 (10.44)
Motion by Mr. Blanton, seconded by Mr. O'Laughlin, that Council award contract to General
Lighting Service with the lowest responsible bid of $118,439.08, and establishing a contingency
of ± 20%. Carried unanimously.
Motion by Mr. Blanton, seconded by Mr. O'Laughlin, that Council adopt Resolution 1994-147
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE EXECUTION
OF AN AGREEMENT WITH GENERAL LIGHTING SERVICE FOR PROJECT 9321 ENERGY
CONSERVATION MODIFICATIONS, Carried unanimously.
BUSINESS LICENSES/BUSINESS REGULATIONS/LICENSE TAXES (11.05)
Motion by Mr. Blanton, seconded by Mr. O'Laughlin, that Council continue this item to
November 7, 1994 for further information regarding the fee structure and additional time for
discussions with contractors. Carried unanimously.
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM/CBDG FUNDS
RESOLUTION 1994-148 (12.06)
Motion by Mr. Blanton, seconded by Mr. O'Laughlin, that Council adopt Resolution 1994-148
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE COUNTY OF SANTA CLARA
AND THE TOWN OF LOS GATOS TO PARTICIPATE IN THE URBAN COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR FISCAL YEAR 1994-95.
Carried unanimously.
CONFLICT OF INTEREST CODE/ORDINANCE 1989 (13.18)
Motion by Mr. Blanton, seconded by Mr. O'Laughlin, that Council adopt Ordinance 1989
entitled, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING SECTION 2.30.610 OF
THE TOWN CONFLICT OF INTEREST CODE, which was introduced at the Town Council
meeting of October 3, 1994. Carried unanimously.
TC: D6: MM101794
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