Staff Report.Transportation Impact Policy Update TC
PREPARED BY: Ying Smith
Transportation and Mobility Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Parks and Public Works
Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/07/2021 ITEM NO:
DATE: December 2, 2021
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve the Recommendations of the Council Policy Committee to:
a. Review and Adopt the Transportation Impact Policy
b. Authorize the Release of a Request for Proposals for the Preparation of a
Study to Guide the Update of the Transportation Impact Fee Program;
and
c. Authorize the Town Manager to Negotiate and Execute a Consultant
Agreement with the Highest Scored Proposer in an Amount Not to
Exceed $175,000.
RECOMMENDATION:
Approve the recommendations of the Council Policy Committee to:
a. Review and adopt the Transportation Impact Policy (Attachment 1);
b. Authorize the release of a Request for Proposals (Attachment 2) for the preparation of a
study to guide the update of the Transportation Impact Fee Program; and
c. Authorize the Town Manager to negotiate and execute a consultant agreement with the
highest scored proposer in an amount not to exceed $175,000.
BACKGROUND:
California Senate Bill (SB) 743, which was signed into law by Governor Brown in 2013, changes
the way that public agencies evaluate the transportation impacts of projects under the
California Environmental Quality Act (CEQA), recognizing that roadway congestion, while an
inconvenience to drivers, is not itself an environmental impact. At its November 17, 2020
meeting, the Town Council adopted a resolution designating the use of vehicle miles traveled
(VMT) as the metric for conducting transportation analyses pursuant to CEQA and establishing
the thresholds of significance to comply with SB 743.
PAGE 2 OF 5 SUBJECT: Transportation Impact Policy DATE: December 2, 2021
BACKGROUND (continued):
The transition to using VMT as the metric for transportation analyses pursuant to CEQA has
necessitated the proposed update to the Traffic Impact Policy. The draft 2040 General Plan
Implementation Program identifies a program called Transportation Analysis Guidelines:
Develop and adopt transportation analysis (TA) guidelines that define the VMT analysis
methods, significant impact thresholds, Transportation Demand Management (TDM)
programs, and mitigation programs consistent with the requirements of Senate Bill 743.
Town Council Policy No. 1-05, currently known as the Traffic Impact Policy, is intended to
provide guidance to Town staff and the development community in implementing the
provisions of the Town Municipal Code, Chapter 15, Article VII, Traffic Impact Mitigation Fees.
DISCUSSION:
The draft Transportation Impact Policy includes major updates to the current policy to
designating the use of VMT in CEQA transportation analysis. The proposed revisions, including
supporting documents, enhance the details used to determine what projects are subject to the
draft policy and subsequently the technical requirements used in preparing transportation
analyses.
The draft policy is updated and organized as follows:
Name: The policy name is changed to Transportation Impact Policy to accurately
represent the purpose.
Section I. General Conditions and Applicability: This includes the language in the current
Policy in sections II-1, II-2, VII-2, and VII-3. The Purpose was expanded to include
“evaluating and mitigating CEQA transportation impacts.” Minor edits were provided
for clarity and consistency.
Section II. Transportation Impact Mitigation Fees: This includes the original language in
sections III-1, 2, 3, 4, and V.
Section III. VMT Mitigation Measures: This is a new addition specific to VMT.
Attachment 1 - Transportation Analysis (TA) Guidelines: This new document was
prepared to reflect 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 Town continues to require level of service (LOS)
PAGE 3 OF 5 SUBJECT: Transportation Impact Policy DATE: December 2, 2021
DISCUSSION (continued):
analysis to assess impacts from new developments on the local roadway performance.
It provides detailed guidance in conducting analyses to meet different requirements in
CEQA guidelines, Congestion Management Program (CMP), and multimodal
transportation analysis per the Town’s transportation policies in the draft General Plan.
The TA guidelines have many technical details therefore it is more appropriate to be
included as an attachment to the draft policy. The key elements and changes from the
current policy are:
1. Explains the different requirements for transportation analyses for different
project types: land use entitlements, land use projects; and transportation
improvements.
2. Establishes different analysis guidelines per the CEQA Guidelines, CMP
compliance, and Town’s transportation policies.
3. Establishes the different procedures to evaluate land use projects that are
compliant with the General Plan and those that are not.
4. Establishes the VMT analysis methods and provides guidance for projects to
propose VMT mitigation measures.
5. Establishes the guidelines for CEQA analysis for transportation projects.
6. Enhances the guidelines for multimodal analysis for land use projects and
provides guidance on proposing transportation improvements to address a
deficiency caused by a project.
Attachment 2 - Town of Los Gatos Transportation Mitigation Improvements Project List:
No change was made to the current Attachment 1. The attachment was re-numbered.
Attachment 3 - VMT Reduction Actions for the Town of Los Gatos: This new attachment
provides supporting documentation for mitigation actions projects will need to take.
This attachment is not all inclusive, but rather provides categories and examples.
Attachment 4 - Definitions: This list of definitions was expanded and modified to be
consistent with the definitions in the Town Municipal Code, Chapter 15, Article VII,
Traffic Impact Mitigation Fees, and Resolution 2020-045. The definitions were moved
from the main document to an attachment.
The Town is in the process of updating the General Plan and the Draft Environmental Impact
Report (DEIR) for the 2040 General Plan which 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.
PAGE 4 OF 5 SUBJECT: Transportation Impact Policy DATE: December 2, 2021
DISCUSSION (continued):
The Draft Policy includes the VMT Reduction Actions that provides a framework for mitigating
VMT in the Town.
One of the implementation actions would be to update the transportation impact fee program
to incorporate the VMT reduction strategies. As an immediate next step, staff is recommending
issuing a Request for Proposals to select a consultant to prepare a study to guide the update to
the transportation impact fee program.
The Town’s impact fee program must comply with the Mitigation Fee Act (California
Government Code Section 66000 et seq., also known as AB 1600). It is envisioned that the new
fee program would have either one combined fee including the LOS-based traffic impact
mitigation fee and a new VMT-based fee, or two separate fees. The study will evaluate these
two different approaches and other alternatives, develop a list of improvement projects,
estimate project costs, and prepare the five statutory findings required for adoption of the fee
program. The new fee program would be designed to help achieve the goals of reducing
vehicle trips and vehicle miles of travel within the Town by avoiding or minimizing the need to
expand existing roadway capacity.
The new fee program will provide a path for land use projects to complete CEQA clearance.
The study will be completed in 2022, leading to a recommended fee program for the Town
Council’s consideration. If adopted, the Transportation Impact Fee Program will replace the
Town’s current Traffic Impact Mitigation Fees.
CONCLUSION:
Staff recommends the Town Council adopt the proposed Transportation Impact Policy
(Attachment 1), authorize the release of the RFP for a Transportation Impact Fee Study
(Attachment 2), and authorize the Town Manager to enter into a contract for the Fee Study for
an amount up to $175,000.
COORDINATION:
This report was coordinated with the Community Development Department and the Town
Attorney. At its November 10 meeting, the Planning Commission reviewed the Draft Policy and
provided feedback.
The consultant on this project, Fehr & Peers, provided comments on the Draft Policy and
technical guidelines. Input from the Planning Commission was incorporated in the final Draft
Transportation Impact Policy. The Council Policy Committee reviewed the Draft Transportation
PAGE 5 OF 5 SUBJECT: Transportation Impact Policy DATE: December 2, 2021
COORDINATION (continued):
Impact Policy and attachments, had no suggested revisions, and recommended that the Town
Council approve the documents.
FISCAL IMPACT:
There is no fiscal impact as a result of adopting the Transportation Impact Policy.
Project 812-0133 VMT Mitigation Program in the Fiscal Year 2021/22 – 2025/26 Capital
Improvement Program Budget has sufficient budget for the consultant contract.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Draft Transportation Impact Policy
2. Draft RFP for a Transportation Impact Fee Study
Budget Costs
GFAR 250,000$
Total Budget 250,000$
Proposed Consultant Contract 175,000$
Total Costs 175,000$
Remaining Balance 75,000$
VMT Mitigation Program
CIP No. 812-0133