Presentation - Traffic Impact FeesSmall Town Service ~ Community Stewardship ~ Future Focus Traffic & Construction Impact Mitigation Fees
Small Town Service ~ Community Stewardship ~ Future Focus Construction Activity Impact Fee •Offsets the cost of road maintenance caused by construction traffic •Adjusted in 2010 to current rate of $1.00/sq ft •Recommended new rate $1.12 per square foot of new development (adjust annually)
Small Town Service ~ Community Stewardship ~ Future Focus Traffic Impact Mitigation Fee Background •Based on expected growth expressed as ADT & capital projects •Captures allocated cost of cumulative traffic impacts Town -wide from new development •Current rate is $600 for first ten trips, with additional trips at $60 or $120 per trip depending on use
Small Town Service ~ Community Stewardship ~ Future Focus Traffic Mitigation Fee Update of 2010 Consultant Study •Reviewed job and population growth assumptions •Updated list and cost of transportation projects required to accommodate GP Build -Out •Adjusted calculations to reflect current Traffic Impact Mitigation Fund balance •Developed Options for Fee Adjustment
Small Town Service ~ Community Stewardship ~ Future Focus Traffic Mitigation Fee Mitigation Impact Fee Eligible Costs (see Appendix A)22,799,000 Less Existing Mitigation Fee Fund Balance (2,137,492) Net improvement fee cost basis 20,661,508 $ Avg. Daily Vehicle trips to be added 24,191 Transportation mitigation fee per net new avg. daily trip 854.10 $ Transportation Mitigation Fee Calculation Source: City staff estimates for eligible improvement costs, and growth estimates from FCS Update March 2014.
Small Town Service ~ Community Stewardship ~ Future Focus Option 1 – Adjust to Market •Increase per trip cost from current $600 to newly calculated $854/trip •42.4% increase consistent with historical construction cost increase of 43.5% for period from 1994 to 2013 •Retains discount for new trips over 10 •Lowest cost impact of options considered •Aligns with prior Council direction
Small Town Service ~ Community Stewardship ~ Future Focus Option 2 – Flat Rate •Eliminates discount provisions of prior rate structure •All trips charged flat rate of $854 per new trip •Results in significant increase for most uses with exception of single family housing and small developments
Small Town Service ~ Community Stewardship ~ Future Focus Option 3 – Progressive Fee •Charges full cost for first 10 trips •Progressively higher cost per trip as number of new trips increase •Impact on very large developments similar to Flat Rate option •Small developments would be impacted least
Small Town Service ~ Community Stewardship ~ Future Focus Fee Options Comparison $5,742 $8,174 $8,174 $8,174 Current Fee Option 1 Market Option 2 Flat Rate Option 3 Progressive Single Family Residential
Small Town Service ~ Community Stewardship ~ Future Focus Fee Options Comparison $15,480 $22,036 $143,489 $67,687 Current Fee Option 1 Market Option 2 Flat Rate Option 3 Progressive New sit -down restaurant (4500 sqft)
Small Town Service ~ Community Stewardship ~ Future Focus Fee Options Comparison $16,860 $24,000 $163,133 $77,510 Current Fee Option 1 Market Option 2 Flat Rate Option 3 Progressive Daycare (3500 sqft)
Small Town Service ~ Community Stewardship ~ Future Focus Fee Options Comparison $149,280 $212,500 $2,048,132 $1,788,272 Current Fee Option 1 Market Option 2 Flat Rate Option 3 Progressive Albright Development (235,000 sqft increase in office commercial)
Small Town Service ~ Community Stewardship ~ Future Focus Fee Options Comparison $2,298,300 $3,271,630 $12,568,936 $12,309,076 Current Fee Option 1 Market Option 2 Flat Rate Option 3 Progressive Mixed Use Residential and Commercial (e.g., North 40 Project)
Small Town Service ~ Community Stewardship ~ Future Focus Fee Comparison with other Cities Sample Project Fremont Santa Cruz Scotts Valley Morgan Hill Gilroy Albright (235,000 sqft)1,169,000 $ 1,443,750 $ 2,560,000 $ 2,592,990 $ 2,758,500 $ Daycare (3500 sqft)n/a n/a 30,720 $ n/a 33,102 $ Restaurant (4500 sqft)39,150 $ 42,750 $ 46,080 $ 67,478 $ 49,653 $ SF Residential 3,879 $ 3,850 $ 5,155 $ 1,704 $ 9,973 $ Traffic Impact Mitigation Fee Comparison Los Gatos Sample Project Current Option 1 Option 2 Option 3 Albright (235,000 sqft)149,280 $ 212,500 $ 2,048,132 $ 1,788,272 $ Daycare (3500 sqft)19,860 $ 24,000 $ 163,133 $ 77,510 $ Restaurant (4500 sqft)15,480 $ 22,036 $ 143,489 $ 67,687 $ SF Residential 5,742 $ 8,174 $ 8,174 $ 8,174 $
Small Town Service ~ Community Stewardship ~ Future Focus Recommendations •Option 1 - Market Rate Adjustment of Traffic Fee with no change to methodology (preserves discount over 10 trips) •Consider further changes in conjunction with a more comprehensive review of development impact fees in FY 15/16 •Adjust Construction Impact Fees by 11.52% as provided for in Town Code
Small Town Service ~ Community Stewardship ~ Future Focus Questions