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Item 2 Staff Report Consider Report in Response to Letter from David A. Gibbons, Vice President, Barry Swenson Builder Regarding Traffic Impact Mitigation Fees for 15400 National Avenue (Continued from October 17, 1994)COUNCIL AGENDA DATE: 11 /7/94 ITEM NO.� TOWN OF LOS GATOS COUNCIL AGENDA REPORT DATE: October 28, 1994 TO: MAYOR AND TOWN COUNCIL FROM: TOWN MANAGER SUBJECT: CONSIDER REPORT IN RESPONSE TO LETTER FROM DAVID A. GIBBONS, VICE PRESIDENT, BARRY SWENSON BUILDER REGARDING TRAFFIC IMPACT MITIGATION FEES FOR 15400 NATIONAL AVENUE (CONTINUED FROM OCTOBER 17, 1994). RECOMMENDATION: Deny the request to reduce the traffic mitigation fee for 15400 National Avenue BACKGROUND: This item was continued from the October 17, 1994 meeting at the request of the applicant. Please see report dated October 14, 1994. DISCUSSION: Since the previous meeting, David A. Gibbons and Luke Stamos met with Planning Department staff to better understand how the trip generation rate (and therefore the traffic impact mitigation fee) was decided. Based on that meeting, they have submitted another letter (Attachment 1), requesting that the land use category "clinic" be used. For the trip generation rate, they are requesting that "employees" be used. Both the land use category and the generation factor are from the most current edition of Trip Generation by the Institute of Transportation Engineers. In determining the average daily traffic (ADT) for the original application and when calculating the traffic impact mitigation fee, the land use category "medical -dental office building" was used. To determine the trip (Continued on Page 2) PREPARED BY: LEE E. BOWMAN PLANNING DIRECTOR LEB:TD:sm 10/28/94 3:31 pm N:IDEV\CNC LR PTSINAT-OFF.2 ATTACHMENTS: (See page 3 for list of attachments) DISTRIBUTION: (See page 3 for distribution list) Reviewed by: Attorney Clerk nance Treasurer COUNCIL ACTION/ACTION DIRECTED TO: ti� PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 15400 NATIONAL AVENUE DATE: November 1, 1994 generation rate, the Town has used the rate for each 1,000 square feet of gross floor area. This is true of all but three types of uses. The uses that are not based on 1,000 square feet of gross floor area include residential, which are per unit; gas stations, which are per pump; and hospitals, which are per bed. In all these cases, the Town has used rates that are easiest to monitor and regulate. As has been shown in this instance, the use of a building can change without any action by the Town. The use that was originally approved for this site was for a "sports medicine" building. The nature of such a use would have greater traffic impacts (and possibly for more hours) than the current oncology center. However, as discoveries are made in the medical field, particularly cancer research, the use of this building could change again. If there were no exterior physical changes, or a change in use that required a conditional use permit, the building could house a medical use that is a much higher traffic use than the current oncology center. It could again become a sports medicine building or a pediatrics center. CONCLUSION: 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 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. FISCAL IMPACT: If the fee is reduced, the maximum amount to be returned from the traffic mitigation deposit account (Account #100-26710) would be $58,287.00. ATTACHMENTS: 1. Letter from Barry Swenson Builder dated October 24, 1994 DISTRIBUTION: David A. Gibbons, Vice President, Barry Swenson Builder, Medical Division, 701 N. First Street, San Jose, CA 95112 Luke Stamos, Ruth & Going, Inc., 1630 Zanker Rd., San Jose, CA 95112 Planning Commission BARRY SWENSON BUILDER MEDICAL DIVISION 701 North First Street San Jose, CA 95112 408.287.0246 Fax 408.998.1737 October 24, 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, • On Wednesday, October 19, 1994, Luke Stamos and I met with Trish Duarte, in order to get a better understanding of how the new Traffic Impact Mitigation Fee was calculated. Together, we reviewed the Town's copy of Trio Generation by the Institute of Transportation Engineers. Ms. Duarte showed us which studies were used to calculate the average daily trips for both the new Medical Building (Cancer Center) and the Convalescent Hospital that previously occupied the site. The Convalescent Hospital A.D.T's were calculated using "Land Use" #620 (Nursing Home) and were based on the number of beds. (49 beds x 2.6 A.D.T's/bed = 127.40 A.D.T's). The Medical Building (Cancer Center) A.D.T's were calculated using "Land Use" #720 (Medical -Dental Office Building) and were based on the square footage of the building. (19,700 sq. ft. x 34.17 A.D.T's/1000 sq. ft. = 673.15 A.D.T's). Based on our review of Resolution 1994-55 "Resolution of the Town Council of the Town of Los Gatos Amending Traffic Impact Mitigation Fees and Rescinding resolutions 1990-144 and 1993-134", the way a building is categorized, and the method of determining the A.D.T's is left completely up to the staff and is subjective. We believe that the Medical Building (Cancer Center) is more closely represented by "Land Use" #630 (Clinic). We believe this, because of the nature of the service that will be provided at the building. The buildings first floor is a radiation therapy center and the second floor houses physicians specializing in chemotherapy and other related practices, long with a small laboratory. Page #933 of Trip Generation by the Institute of Transportation Engineers defines a Clinic as follows: "a clinic , for trip generation purposes, is any facility that provides limited diagnostic and outpatient care, but is unable to provide prolonged in-house medical/surgical care." A Division of Green Valley Corporation Contractor's License Number 342751 ATTACHMENT ACHMENT Mr. Lee Bowman Planning Director Town of Los Gatos October 24, 1994 Page Two This definition closely resembles the actual use of the Cancer Center, as opposed to Medical -Dental Office Building, which by it's nature would see many more patients' for much shorter appointments (most particularly in the case of a Dental Building). Re -calculating the A.D.T's using "Land Use" #630 (Clinic), and basing the calculation on the number of employees yields the following: Number of employees (including physicians) 30 Weekday A.D.T's/employee 5.89 30 employees x 5.89 A.D.T's/employee Cancer Center Convalescent Hospital (from above) Total Additional A.D.T's Traffic Impact Mitigation Fee: 10 x $600.00 40 x $120.00 Total TIMI $ 6,000.00 $ 4.800.00 $10,800.00 176.70 A.D.T's 176.70 A.D.T's 127.40 A.D.T's 49.30 A.D.T's Since Resolution 1994-55 does not specifically require that the A.D.T's be calculated based on square footage, or number of doctors or number of employees etc... we believe that the above calculation is certainly in accordance with the Resolution. We therefore respectfully, request that the Traffic Impact Mitigation Fee for this project be reduced to $10,800.00. Thank you for your consideration. Sincerely, BARRY SWENSON BUILDER - Medical Division David A. Gibbons Vice President cc: Luke Stamos Los Gatos Town Council