16 Staff Report - N40 Agreement
PREPARED BY: Mike Weisz
Senior Civil Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Director
of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 08/04/2020
ITEM NO: 16
DATE: July 30, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution Authorizing the Town Manager to Execute the North 40 In
Lieu Traffic Fee Credit Agreement, North 40 Transportation Demand
Management Agreement (Bellterra), and North 40 Transportation Demand
Management Agreement (Market Hall) for Phase 1 of the North 40
Development
RECOMMENDATION:
Adopt a Resolution authorizing the Town Manager to execute the North 40 In Lieu Traffic Fee
Credit Agreement, North 40 Transportation Demand Management Agreement (Bellterra), and
North 40 Transportation Demand Management Agreement (Market Hall) for Phase 1 of the
North 40 development.
BACKGROUND:
On August 1, 2017 the Town Council approved the applications for Phase 1 of the North 40
Specific Plan. Phase 1 included several conditions of approval, including the requirement for a
Traffic Demand Management (TDM) Plan and the payment of Traffic Impact Mitigation Fees.
Staff has worked with Summerhill Homes to address both of these issues as agreements
(Attachments 2 -4).
DISCUSSION:
Staff provided Summerhill Homes with a target reduction of 15% of daily trips in order to
achieve compliance with the TDM requirement. Establishing an effective TDM plan on a
development like the North 40 that is unsupported by significant transit can prove challenging.
The project has programmed in standard TDM measures, such as bike racks, improved
PAGE 2 OF 3
SUBJECT: Adopt a Resolution Authorizing the Town Manager to Execute the North 40 In
Lieu Traffic Fee Credit Agreement, North 40 Transportation Demand
Management Agreement (Bellaterra), and North 40 Transportation Demand
Management Agreement (Market Hall) for Phase 1 of the North 40 Development
DATE: July 30, 2020
DISCUSSION (cont’d):
pedestrian and bicycle access, car share parking spaces and ridesharing programs, transit
passes, shower facilities for the Market Hall and a transportation coordinator. In addition, staff
recommended that the project, through future assessments on property owners, provide
funding for future Town-wide TDM initiatives, such as a Town operated shuttle. The TDM
requirement may be a requirement for future developments as well. The TDM program will
accumulate funds until such time as sufficient funds are available to begin implementation of
specific measures. For the North 40 project, funds will begin to accumulate once each
certificate of occupancy is issued.
Although the Town’s work to complete vehicle miles travelled (VMT) policies is not yet
complete, mandates for compliance with CEQA will lead to the establishment of TDM
measures. Establishing this program now will provide a foundation for future TDM measures
and the limitation on the use of fees is broad enough to both meet short term goals and remain
flexible for long term evolutions in transportation.
The Town’s Traffic Impact Mitigation Fee allows for developers to complete mitigation projects
as an offset to the calculated impact fee. This allows for the completion of projects in the right
of way that the Town would otherwise need to complete. Often the developer can complete
these projects at a more affordable cost than the Town could as they are mobilized at the site
and have the resources ready and available. As the first developer on the site, Summerhill
Homes is completing all of the adjacent impact fee related projects. Attachment 2 identifies a
process in which traffic impact mitigation fees from future developers on the North 40 site will
reimburse Summerhill Homes for the upfront costs of these improvements. The Town benefits
by not needing to deliver capital projects, by having the impact fee related projects completed
all at once, and by having Summerhill Homes front all of the project costs.
CONCLUSION:
Staff recommends that Council adopt a resolution authorizing the Town Manager to execute
the above-listed agreements for Tract Number 10441 (North 40 Phase 1).
COORDINATION:
This project has been coordinated with the Town Attorney.
FISCAL IMPACT:
PAGE 3 OF 3
SUBJECT: Adopt a Resolution Authorizing the Town Manager to Execute the North 40 In
Lieu Traffic Fee Credit Agreement, North 40 Transportation Demand
Management Agreement (Bellaterra), and North 40 Transportation Demand
Management Agreement (Market Hall) for Phase 1 of the North 40 Development
DATE: July 30, 2020
The Town will see revenue accumulation for TDM measures.
ENVIRONMENTAL ASSESSMENT:
As part of the Specific Plan preparation process, the Town also prepared and circulated an
Environmental Impact Report (EIR) that analyzed the potential environmental consequences of
the Specific Plan, in accordance with the California Environmental Quality Act (CEQA). The EIR
can be found at the following link: www.losgatosca.gov/DocumentCenter/Index/413. The
Town Council certified the Final EIR on June 17, 2015.
Attachments:
1. Resolution
2. North 40 In Lieu Traffic Fee Credit Agreement
3. North 40 Transportation Demand Management Agreement (Bellaterra)
4. North 40 Transportation Demand Management Agreement (Market Hall)
DISTRIBUTION:
SummerHill N40 L.L.C., 777 California Avenue, Palo Alto, CA 94304