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DATE:
TO:
FROM:
COUNCIL AGENDA REPORT
MAY 9, 2014
MAYOR AND TOWN COUNCIL
GREG LARSON, TOWN MANAGER
MEETING DATE: 05/19/14
ITEM NO: 5
SUBJECT: AMENDMENT OF TRAFFIC IMPACT MITIGATION FEES
ADOPT A RESOLUTION CONFIRMING ACTION TAKEN BY THE TOWN
COUNCIL AT A SPECIAL METING HELD ON MARCH 24, 2014,
AMENDING THE TOWN OF LOS GATOS TRAFFIC IMPACT MITIGATION
FEES AS PROVIDED FOR IN SECTION 15.70.035 OF THE TOWN CODE.
RECOMMENDATION:
Adopt a resolution (Attachment 1) confirming action taken by the Town Council at a Special
Meeting held on March 24, 2014, amending the Town of Los Gatos Traffic Impact Mitigation
Fees as provided for in Section 15.70.035 of the Town Code.
DISCUSSION:
At a Special Meeting held on March 24, 2014, the Town Council held a Public Hearing to
consider increasing the Town's existing Traffic Impact Mitigation Fees, which had not been
adjusted since 1994. Following a presentation by staff and receipt of public testimony at the
March 24, 2014 Public Hearing, the Council took the following actions:
A. The fee for all uses shall be calculated at $854 per new Average Daily Trip (ADT), with
no discount for trips over 10 new ADT.
B. On an annual basis, or sooner as needed or indicated by staff or the Council, the structure
of the Traffic Mitigation Fee shall be reviewed to ensure it is doing what was intended
and that there have been no unintended consequences.
C. On an annual basis, the Traffic Mitigation Fee shall be reviewed for a Cost of Living
Adjustment (COLA) or other appropriate adjustment.
PREPARED BY: MATT MORLEY ;7z4,AiA
Director of Parks and Public Work
Reviewed by: Assistant Town Manager -W Town Attorney
PAGE 2
MAY 9, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENT OF TRAFFIC IMPACT MITIGATION FEES
DISCUSSION (cont'd):
The attached resolution confirms the above actions taken by the Town Council at the Special
Meeting on March 24, 2014. Adoption of the attached resolution also rescinds Resolution 1994-
55 (Attachment 2), which established the existing Traffic Impact Mitigation Fees.
Resolution 1994 -55 contained several additional provisions. The text of each provision and the
corresponding staff recommendation, based on what staff believes was previous Council
direction, are listed below.
A. A secondary dwelling unit with a floor area of six hundred square feet or less shall be
exempt from this fee.
Recommendation: Remove this provision to be consistent with Council direction to
remove the previously existing discounts.
B. The Town Council may exempt housing developments for very low, low and moderate
income residents (as defined by Town Ordinance, General Plan, or statue) from all or a
portion of the traffic impact mitigation fee upon making a finding that the development
provides a significant community benefit by meeting current needs for affordable
housing. The exempted fees will be made up from other sources of revenue. Traffic
mitigation fees paid by other developers will not be used to subsidize the exempted
projects. Each year the Town will identify how much money is to be allocated in the
Capital Improvement Program for traffic improvement projects. Additional revenue
sources will be identified to cover exempted fees.
Recommendation: Remove this provision to be consistent with Council direction to
remove the previously existing discounts.
C. Walk -in, impulse businesses such as juice bars, yogurt shops and donut shops, which do
not serve meals, shall be considered Specialty Retail for purposes of traffic impacts only.
Recommendation: Retain this provision as it provides clarity to staff on handling some
unique classifications of business.
D. Traffic credit may be granted for an existing or former use. When applicable, existing or
former use traffic (ADT) shall be subtracted from the project traffic prior to calculating
the fee.
Recommendation: Retain this provision. Discussion at the March 24, 2. 014 meeting on
this item included a review of best practices for credits that ensure double charging
associated with traffic impact does not occur.
PAGE
MAY 9, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENT OF TRAFFIC IMPACT MITIGATION FEES
DISCUSSION (cont'd):
E. ADT is defined as the number of average daily trips associated with an identified land
use as determined or derived from the most recent edition of Trip Generation by the
Institute of Transportation Engineers or a Town sponsored traffic study, whichever is
less. Any Town approved traffic study will be paid for by the applicant.
Recommendation: Retain this provision as it provides clarity on standards for the
calculation and application of fees.
Any of the above provisions which the Council wishes to adjust from the staff recommendation
can be added to or removed from the attached resolution at the direction of the Council.
Staff is also recommending the inclusion of specific language in the implementing resolution to
clarify when mitigation fee credit will be granted for completion of projects by a developer that
are listed on the Town of Los Gatos Traffic Mitigation Improvement Project List (Attachment 3).
The inclusion of this provision will address concerns that have been raised since the Council's
March 24, 2014 action on Traffic Impact Mitigation Fees regarding the potential for "double
charging" for transportation improvements identified on the Traffic Mitigation Improvement
Project List that are also required to be completed as part of project's environmental mitigations
or conditions of approval.
The language proposed for inclusion in the resolution is as follows:
Credit against Traffic Impact Mitigation Fees due shall be granted up to the amount of
the Estimated Project Cost shown on Attachment 1, Town of Los Gatos Traffic
Mitigation Improvements Project List, for any listed projects for which the developer
either constructs at the developer's own cost, or contributes a fixed or percentage amount.
Where construction is fully funded and completed by the developer, said credit shall be
equal to the Project Cost as shown in Attachment 1. Where payment is a fixed amount or
a percentage of Project Cost, credit shall be equal to the actual amount due, whether the
project is constructed by the developer or others.
FISCAL IMPACT:
The new fees will be included in the Town of Los Gatos 2014/15 Comprehensive Fee Schedule
but will not become effective until 60 days following adoption of the attached resolution.
Depending on the level of development activity and changes in land use and building occupancy,
a significant increase in Traffic Impact Mitigation Fee revenue should be realized by the Town
with the adoption of this adjusted fee.
PAGE 4
MAY 9, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENT OF TRAFFIC IMPACT MITIGATION FEES
Attachments:
1. Resolution Amending Traffic Mitigation Impact Fees
2. Resolution 1994 -55
3. Traffic Mitigation Improvement Project List
4. March 24, 2014 Council Report
5. March 24, 2014 Council Report Minutes
6. Communication from the Public
RESOLUTION 2014-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AMENDING TRAFFIC IMPACT MITIGATION FEES
AND RESCINDING RESOLUTION 1994 -55
WHEREAS, Chapter 15, Article VII of the Town of Los Gatos Town Code provides for
the establishment of Traffic Impact Mitigation Fees; and
WHEREAS, the purpose of these fees is to assure that each new development or
expansion of use pays its fair share of the transportation improvements needed to accommodate
cumulative traffic impacts associated with development as anticipated in the Town's adopted
General Plan; and
WHEREAS, the Traffic Impact Mitigation Fees currently in place have been unchanged
since their approval by the Council on April 4, 1994 with the adoption of Resolution 1994 -55;
and
WHEREAS, the Town has determined the estimated cost of the transportation
improvements necessary to implement the circulation element of the Town's General Plan; and
WHEREAS, the Town has determined the current and anticipated funding available to
pay for the cost of construction of the transportation improvements, including the amount of
funding currently available in the Town's Traffic Impact Mitigation Fee Fund; and
WHEREAS, Section 15.70.035 (a) of the Town Code provides for periodic review of
these fees; and
WHEREAS, Section 15.70.035 (a) of the Town Code also sets forth that the Town
Council shall by resolution set the specific amount of traffic impact mitigation fees; and
WHEREAS, on March 24, 2014, the Town Council at a duly noticed Public Hearing
considered and took action on the specific amount to be charged for traffic mitigation fees which
shall be incorporated in the Town of Los Gatos 2014/15 Comprehensive Fee Schedule.
NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los
Gatos, County of Santa Clara, State of California that the following Traffic Mitigation Fees,
adopted by the Town Council on March 24, 2014, shall be payable as set forth in Chapter 15,
Article VII of the Town Code:
A. The fee for all uses shall be calculated at $854 per new Average Daily Trip (ADT).
ATTACHMENT 1
FURTHER RESOLVED, that the following provisions, previously included as part of
Resolution 1994 -55 adopted on April 4, 1994, shall remain in effect:
A. Walk -in, impulse businesses, such as juice bars, yogurt shops and donut shops, which do
not serve meals, shall be considered Specialty Retail for purposes of traffic impacts only.
B. Traffic credit may be granted for an existing or former use. When applicable, existing or
former use traffic (ADT) shall be subtracted from the project traffic prior to calculating
the fee.
C. ADT is defined as the number of average daily trips associated with an identified land
use as determined or derived from the most recent edition of Trip Generation by the
Institute of Transportation Engineers or a Town sponsored traffic study. The Town
approved traffic study will be paid for by the applicant.
FURTHER RESOLVED, that credit against Traffic Impact Mitigation Fees due shall be
granted up to the amount of the Estimated Project Cost shown on Attachment 1, Town of Los
Gatos Traffic Mitigation Improvements Project List, for any listed projects for which the
developer either constructs at his own cost, or contributes a fixed or percentage amount. Where
construction is fully funded and completed by the developer, said credit shall be equal to the
Project Cost as shown in Attachment 1. Where payment is a fixed amount or a percentage of
Project Cost, credit shall be equal to the actual amount due, whether the project is constructed by
the developer or others.
FURTHER RESOLVED, that on an annual basis, or before as needed or indicated by
staff or the Council, that the structure of the Traffic Mitigation Fee be reviewed to determine that
it is doing what is intended and does not have unintended consequences; and
FURTHER RESOLVED, that on an annual basis, the Traffic Mitigation Fee be
reviewed for a Cost of Living Adjustment (COLA) or other appropriate adjustment.
FURTHER RESOLVED, this resolution rescinds Resolution No. 1994 -55.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos held on the 14th day of May, 2014 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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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
RESOLVED, the Town Council hereby establishes a traffic impact fee payable
pursuant to Chapter 37 of the Town Code as follows:
A. The fee for residential uses shall be calculated at $600 per Average Daily Trip
(ADT), except that a secondary dwelling unit with a floor area of six hundred
(600) square feet or less shah be exempt from this fee.
B. The fee for medical office use shall be calculated at 5600 per ADT for the
First ten (10) trips and 5120 per ADT thereafter.
C. The fee for all other uses shall be calculated at $600 per ADT for the first
ten (10) trips and S60 per ADT thereafter.
D. The Town Council may exempt housing developments for very low, low and
moderate income residents (as defined by Town Ordinance, General Plan, or
statute) from all or a portion of the traffic impact mitigation fee upon making
a finding that the development provides a significant community benefit by
meeting current needs for affordable housing. The exempted fees will be
made up from other sources of revenue. Traffic mitigation fees paid by other
developers will not be used to subsidize the exempted projects. Each year the
Town will identify how much money is to be allocated in the Capital
Improvement Program for traffic improvement projects. Additional revenue
sources will be identified to cover exempted fees.
E. Walk -in, impulse businesses, such as juice bars, yogurt shops and donut shops,
which do not serve meals, shall be considered Specialty Retail for purposes
of traffic impacts only.
ATTACHMENT 2
r
F. Traffic credit may be granted for an existing or former use. When applicable,
existing or former use traffic (ADT) shall be subtracted from the project
traffic prior to calculating the fee. The first ten trips of the difference will
be charged at the higher $600 per trip rate.
G. ADT is defined as the number of average daily trips associated with an
identified land use as determined or derived from the most recent edition of
Tdn Generation by the Institute of Transportation Engineers or a Town
sponsored traffic study - whichever is less. The Town approved traffic study
will be paid for by the applicant.
FURTHER RESOLVED, this Resolution rescinds Resolution No. 1990 -144 and
Resolution No. 1993 -134,
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 410 day of April, 1994, by the following vote.
TOWN COUNCIL MEMBERS:
AYES: Joanne Benjamin, Steven Blanton, Linda Lubeck, Patrick O'Laughlin, and
Mayor Randy Attaway.
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED: /s/ Randy Attaway
MAYOR OF THE TOWN OF LOS GATOS
ATTEST:
/s/ Marian V. Cosgrove
CLERK OF THE TOWN OF LOS GATOS
2
Attachment 3
Growth
Estimated Related Mitigarion
Project Cost Project Cost Impact Fee
Source Description (2014$) Sbare Eligible Cost
GPNTP 2035 Blossom Hill Rd and Union Ave Intersection Improvements 1 $ 1,200,000 1 90.00% . I $ 1,080,000
GPNTP 2035 ILos Gatos - Almaden Rd Improvements I $ 3,000,000 50.00% 1 $ 1,500,000
GPNTP 2035
Los Gatos Blvd Widening - Samaritan Dr to Camino Del Sol - Road widening,
new sidewalks and bike lanes
$ 4,000,000
50.00%
$ 2,000,000
GPNTP 2035
Union Ave Widening and Sidewalks - complete and bike routes
$ 3,000,000
50.00%
$ 1,500,000
GPNTP 2035
Wood Rd Gateway on Santa Cruz Ave - roundabout
$ 1,200,000
1 50.00%
1 $ 600,000
GPNTP 2035
Central Traffic Signal Control System
$ 0
9.68%
$ 72,600
GPNTP 2035
H 9 Los Gatos Creek Trail connector - new path and bride for ike
$ 0
50.00%
$ 500,000
GPNTP 2035
H 9/N. Santa Cruz Ave Intersection Im rovements
$
90.00%
$ 1,260,000
CIP
Roberts Road Improvements from bride to University
$
50.00%
$ 300,000
CIP
Pollard Road Widening from Knowles to York Avenue
$
50.00%
43,750,0001$
$ 1,250,000
CIP
Sidewalks infill - Van Meter, Fischer and Blossom Hill Schools
$
50.00%
$ 500,000
CIP
Winchester Blvd/Lark Avenue Intersection Improvements
$
90.00%
$ 765,000
CIP
Westbound Lark to H 17 northbound ramps - add two right-turn lanes
$
90.00%
$ 3,375,000
CIP
Unfunded Deferred Street Maintenance (Annual PMS Survey)
$ 10,500,000
9.68%
$ 1,016,400
GP
IEastbound
Lark/Los Gatos Intersection Improvements - Add Third Left Tom Lanes for
and Northbound Approaches
$ 1.200.000
90.00%
$ 1,080,000
GP
Complete Street Improvements - Lark from Garden Hill to Los Gatos Blvd
$ 2,100,000
50.00%
$ 1,050,000
GP
Com lete Street Im rovements - SR 9 from Univeristy to Los Gatos Blvd
$ 650,000 1
50.00%
$ 325,000
GP
Ito
Complete Street Improvements - Blossom Hill Road from Old Blossom Hill Road
Re ent Drive
$ 3,000,000
50.00%
$ 11500,000
GP Com late Street improvements - Knowles from Pollard to Winchester
$ 2,000,000
50.00% $ 1,0001000
GP Com lete Street Improvements - Winchester from Blossom Hill to lark
$ 1,500,000
50.00% $ 750,000
GP Blossom Hill Road widening over Highway 17
$ 2,000,000
50.00% $ 1,000,000
GP Local Bikewa Im rovements
$ 750,000
50.00% $ 375,000
Notes: Total
$ 47,950,000
$ 22,799,000
v r - = valley transportation Plan, 2035 by Santa Clara Valley Transportation Authority.
Town CIP = Town of Los Gatos, Capital Improvement Program and pending construction project list.
Source: Town of Los Gatos.
Attachment 3
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wx ` MEETING DATE: 3/24/14
!` ITEM NO: 3 a,
os sR� s COUNCIL AGENDA REPORT
DATE: MARCH 13, 2014
TO: MAYOR AND TOWN COUNCIL 0
FROM: GREG LARSON, TOWN MANAGER �'-
SUBJECT: AMENDMENT OF TRAFFIC AND CONSTRUCTION ACTIVITY IMPACT
MITIGATION FEES
a. ADOPT A RESOLUTION AMENDING THE TOWN OF LOS GATOS
TRAFFIC IMPACT MITIGATION FEES AS PROVIDED FOR IN
SECTION 15.70.035 OF THE TOWN CODE.
b. ADOPT A RESOLUTION AMENDING THE TOWN OF LOS GATOS
CONSTRUCTION ACTIVITY IMPACT MITIGATION FEES PURSUANT
TO SECTION 15.90.035 (d) OF THE TOWN CODE.
RECOMMENDATION:
1. Adopt a resolution amending the Town of Los Gatos Traffic Impact Mitigation Fees as
provided for in Section 15.70.035 of the Town Code, increasing the per trip fee to $854 and
retaining the current percentage discount structure (Option 1 below).
2. Adopt a resolution amending the Town of Los Gatos Construction Activity Impact
Mitigation Fees pursuant to Section 15.90.035 (d) of the Town Code.
BACKGROUND:
In April 2010, staff presented a report to the Town Council recommending increases to both the
Town's existing Traffic Impact Mitigation Fee and Construction Activity Impact Mitigation Fee,
as neither of these fees had been adjusted since their adoption in 1994. The recommendation for
the fee adjustments was supported by a fee study prepared by FCS Group, a consulting firm with
broad experience in user and impact fee analysis.
The Town Council approved changes to the Construction Activity Impact Fee with the adoption
of Ordinance 2189 on May 3, 2010, increasing the fee to its current level of $1.00 per square foot
of new construction. No action was taken on recommended modifications to the Traffic Impact
Fees, with consideration of any adjustments deferred to a future date. The Construction Activity
Impact Fee recovers the cost of damage to roadways caused by construction traffic associated
with new construction projects.
Reviewed by:
MATT MOPar f) %t ?�s�
Director of Parks and Pub is ork
Town Manager -EA._Town Attorney
Attachment 4
PAGE
MARCH 13, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENT OF TRAFFIC AND CONSTRUCTION ACTIVITY IMPACT
MITIGATION FEES
BACKGROUND (cont'd):
With the improvement in the economy at both the State and local levels since the initial fee
consideration in 2010 and with a noticeable increase in development activity and corresponding
local traffic impacts, staff is recommending that the Town Council reconsider modifications to
the Traffic Impact Mitigation Fee. In addition, staff is recommending a minor adjustment to the
Construction Impact Fee as provided for in the Town Code.
DISCUSSION:
Traffic Impact Mitigation Fees capture the cumulative impact of development projects on the
Town's roadways beyond the immediate vicinity of the development. As an example, a project
may increase traffic at an intersection some distance away that adds to the need to make
upgrades to that intersection. The fees are held and aggregated across development projects to
address Town -wide transportation needs as identified in the Town's General Plan.
Authority to assess Traffic impact Fees is codified in Chapter 15, Article VII of the Los Gatos
Town Code. The process for establishing the fee is set forth in Section 15.70.030, Fee
Determination. The Town Code further provides in Section 15.70.035 (a) that the Town Council
shall periodically review the traffic impact mitigation fees, and shall by resolution, set forth the
specific amount of the fees.
The Town's existing Traffic Impact Mitigation Fees have not changed since 1994, and are
calculated based on the number of new Average Daily Trips (ADT) that are projected to be
generated from a new development or a change in use, as set forth in the most recent edition of
Trip Generation, published by the Institute of Transportation Engineers (ITE). New trip
generation is based on the net increase in square footage of new development, and use, with
credit given for existing trips from previous or existing uses. Table 1 below reflects the Town's
current rate structure.
Table 1
Current Traffic Impact Mitigation Fee Rates
PAGE
MARCH 13, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENT OF TRAFFIC AND CONSTRUCTION ACTIVITY IMPACT
MITIGATION FEES
DISCUSSION (cont'd)•
In 2010, when revisions to the Traffic Impact and Construction Activities Impact Mitigation fees
were last evaluated, the Town retained FCS Group, a consulting firm with extensive experience
in user and impact fee analysis. FCS Group prepared a report in 2010 that provided the basis for
the Construction Activities Fee approved by Council, as well as for the recommendations for
modifying the Town's Traffic Impact Mitigation Fees which were not approved.
In conjunction with Parks and Public Works staff, FCS recently completed an update of the
Traffic Impact Mitigation Fee portions of the 2010 re port, utilizing the Town Code stipulated
methodology for calculating traffic impact fees. In summary, this methodology looks at the cost
of implementing transportation improvements needed to accommodate vehicle trip growth
resulting from "build out" as set forth in the Town's adopted 2020 General Plan. A growth -
related percentage is then assigned to each identified transportation project to determine the
traffic mitigation fee eligible cost of each project. The detailed list of projects and growth -
related calculations are provided in Appendix A. The total cost of these improvements is then
reduced by the existing Traffic Impact Mitigation Fee Fund Balance to determine the current
unfunded cost of traffic improvements. This unfunded cost is then divided by the projected
number of new trips which will result from development provided for in the General Plan in
order to derive a new calculated cost per trip.
As shown in Table 2 below, using the total new trip number and the cost of mitigation fee
eligible improvements, a new rate of $854 per trip was calculated. This represents an increase of
approximately 42.4% over the existing fee of $600 per trip. This increase is consistent with the
growth in construction costs as reflected in the industry - standard Engineering News Report
(ENR) Building Cost Index for the San Francisco region which increased 43.5% from 1994 to
2013, reflective of the time period since the current fee was put in place.
gation Impact Fee Eligible Costs (see Appendix A) 22,799,000
c Existing Mitigation Fee Fund Bahttce _ (2,137,492'
improvement fee cost basis a In r.<1 cno
vg. Daily Vehicle hips to be added
ITportation mitigation fee per net new avg. daily trip $ 854.10
A significant feature of the Town's current Traffic Impact Mitigation Fee calculation is the
significant cost per new trip discount for uses that generate more than 10 new trips (see Table 1).
This discount has been a component of the Traffic Impact Fee methodology in place since 1994,
and along with credit for existing trips from previous uses, often results in lower average cost per
trip for large traffic generators. This discount results in the Town collecting less than is needed
PAGE
MARCH 13, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENT OF TRAFFIC AND CONSTRUCTION ACTIVITY IMPACT
MITIGATION FEES
DISCUSSION (cont'd):
to implement the traffic improvements which these developments require. The Town ultimately
must seek other funding sources or accept increased traffic impacts.
Staff considered several options for adjusting the Traffic Impact Fee as described below
Option ]—Increase Cost per Trip to Market: No Change in Methodology
Option I is the most straightforward alternative and simply uses the new cost per trip of $854
(instead of the current fee of $600) as the basis for the new fee calculation as outlined in Table 1,
maintaining the existing discount methodology, where trips over 10 are charged at either 10% or
20% of the initial trip charge, depending on use.
Option 2 —Flat Rate Mitigation Fee
This option eliminates the discount provisions of the existing rate structure, charging a Flat Rate
for all new trips, eliminating the discount for trips over 10 new trips. Under a Flat Rate scenario,
the rate could be set at the calculated cost of $854 per trip, could be phased in over time, or could
be set at a lower amount than the maximum allowable rate. The calculation in Table 4 assumes
the use of the $854 rate. This means that the cost for a development that generates 10 new trips
would be $8,400 (10 x $840), the cost for a development that generates 100 new trips would be
$84,000, and so on. This option would produce the most revenue over time and would have the
greatest impact on uses that generate a substantial number of new trips.
OQtlon 3 Progressive Fee with Minimum
This option creates a progressive fee structure that charges an increasingly greater amount per
trip as the total number of trips increase. The adjustment points were established by referencing
both the Town's Traffic Policy, which sets thresholds for when a Traffic Impact Analysis must
be conducted, and the Countywide Congestion Management Agency (CMA) Traffic Impact
Analysis Methodology. The progressive fee structure is shown below on Table 3:
Table 3
Pro posed Progressive Fee Structure
0 -10
1000/0
$854
11 -50
25%
$214
51 -200
50%
$427
201 -1000
75%
$640
Over 1000
100%
$854
PAGE 5
MARCH 13, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENT OF TRAFFIC AND CONSTRUCTION ACTIVITY IMPACT
MITIGATION FEES
DISCUSSION (cont'd):
This fee structure would continue to capture 100% of the per trip cost of traffic impacts for new
single family residential uses and other small developments, while providing a discount for
moderate and larger developments. Large projects with significant traffic impacts would pay the
highest amount.
The impact of the three options on a sample of actual and benchmark projects, along with the
existing traffic fee, are shown below in Table 4.
Table 4
Sample Project Traffic Impact Fees
Fees for a sample of selected Santa .Clara County and other nearby cities that have a Traffic
Mitigation Impact Fees in place are presented in Table 5. It is worth noting, however, that not all
jurisdictions have a Traffic Mitigation Impact Fee. For example, within Santa Clara County,
Campbell, Cupertino, Saratoga, Monte Serena, Mountain View and Saratoga do not have a
citywide Traffic Mitigation Impact Fee.
It is also important to recognize that comparing development fees across jurisdictions for only
one impact fee (in this case, traffic) may not reflect the true impact mitigation burden on a
development. For example, Gilroy assesses a Traffic Impact Fee of $9,973 for single family
residential and a Public Facilities Impact Fee of $16,848 per unit along with additional fees for
PAGE 6
MARCH 13, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENT OF TRAFFIC AND CONSTRUCTION ACTIVITY IMPACT
MITIGATION FEES
DISCUSSION (cont'd):
storm drainage, water, sewer and street trees. Campbell, which does not have a Traffic Impact
Fee, has a Park Impact Fee of $15,750 per new single family home. Los Gatos has neither a
Public Facilities Impact Fee nor a Park Impact Fee.
Table 5
A t 235 000 ft)
$
r ramc impaci
149,260
maugavion
$ 1,169,000
ree eom arson
$ 1,443 750
$
2,560 000
$ 2 592,990
$
2,758,500
Da are 3500 fl
$
19,860
n/a
nJa
$
30,720
n/a
$
33102
Restaurant 4500 R)
$
15,480
S 39,150
$
42,750
$
080
$ 67,478
$
49653
fast Food with Drive "rhru 2500 s R
$
52,800
S 75,945
$
91 ,500
$
51,200
S 93 94
$
55 723
SF Residential
$
5,742
$ 379
$
3 850
$
5155
S 1,704
S
9973
• ; Gatos Fce is current fee
..._'
RECOMMENDATION:
Traffic Impact Mitigation Fee Recommendation
At this time, staff is recommending that the Town Council approve Option 1, an adjustment to
market, without making any further changes in the Traffic Mitigation Fee methodology or
formula. Staff is further recommending that a more comprehensive review of existing and
potential new development impact fees be considered as a strategic goal in the upcoming goal
setting for the FY 15/16 Fiscal Year. More detailed analysis of the impact of any subsequent
adjustment to traffic fees can then be evaluated within the context of potential new fees that
would provide much- needed revenue for Town services that currently receive no dedicated
funding from new development. Specific examples to be considered might include a parks
impact fee or a Town -wide landscaping and lighting assessment.
Construction Activities Mitigation Fee
The current Construction Activities Mitigation Fee Ordinance was adopted in 2010 and is
codified in Article IX of Chapter 15 of the Town Code. At the time that the Ordinance was
adopted, the fee was set at $1.00 per square foot of new development. Section 15.90.035 (d) of
the Town Code provides that the mitigation fee rate shall be adjusted on July 1 of each year to
account for changes in the cost of construction of facilities, which is tied to the Engineering
News Record (ENR) Building Cost Index (BCI) for the San Francisco Bay Area region. The
recommended adjustment to the Construction Activities Mitigation Fee, based on changes to the
ENR BCI, is 11.52 %. This will bring the rate up from the existing fee of $1.00 per square foot,
to $1.12 per square foot, consistent with provisions of the Town Code. The change in the ENR
Building Cost Index since the 2010 adoption of the $1.00 per square foot fee is shown below in
Table 6. In future years, the ENR Index will be tracked annually and changes included as part of
the Town's annual fee update.
PAGE 7
MARCH 13, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENT OF TRAFFIC AND CONSTRUCTION ACTIVITY IMPACT
MITIGATION FEES
RECOMMENDATION (cont'd ):
Table 6
ENR Building Cost Index (San Francisco)
CONCLUSION:
In 1994, the Town Council adopted both a Traffic Impact Mitigation Fee and a fee for Mitigation
of Road Impacts Caused by Construction Projects. In February 2010, the Town approved
changes to the Construction Activity Mitigation Fee but deferred action on adjustment of the
Traffic Impact Fee. An update of the 2010 analysis was conducted by FCS Group, the
consultants that prepared the 2010 recommendations. Any approved adjustments to the
Construction Activity Impact or Traffic Impact fees would be reflected in the FY 2014/15
Comprehensive Fee Schedule. The recommended adjustments to the Traffic Impact Mitigation
Fee and the Construction Impact Fee are consistent with Council's adopted Core Values for
Fiscal Stability ( "Maintain ongoing fiscal stability to provide cost effective core services that
meet the needs of the community") and Quality Public Infrastructure ( "Maintain the condition
and availability of public facilities, transportation systems, and other public infrastructure ").
The increase in the Construction Impact Fee also meets the Council's 2014 -2016 Strategic Goal
to "Explore and present funding mechanisms to provide ongoing funding for street
maintenance."
FISCAL IMPACT:
-Construction Activity Impact Fees are a direct function of development and construction activity,
which is in turn linked to regional economic conditions. For the past three fiscal years,
Construction Activity Impact Fee revenue has averaged around $280,000 annually. Revenue for
the current fiscal year should be substantially higher, with $240,000 in revenue already received
through the first half of the fiscal year. This total does not include revenue that will be received
Year
Month
BCI=SF
% Chg
Adustmeyt
2009
Jan
5510.81
n/a
I n/a
2010
1 Jan
1 5461.81
-0.89%
1- Jul -10
2011
Jan
1 59W.771
7.30%
1- Jul-II
2012
Jan
1 5952.271
1.56%
1- Jul-12
2013
Jan
1 6018.521
1.11%
1- Jul-13
2014 1
Jan 1
6228.551
3.49%
I- Jul -14
2015
Jan
1 -Ju115
2016
Jan
1 -JuF16
Catch Up 2010 to 2014
(11.52
%;
CONCLUSION:
In 1994, the Town Council adopted both a Traffic Impact Mitigation Fee and a fee for Mitigation
of Road Impacts Caused by Construction Projects. In February 2010, the Town approved
changes to the Construction Activity Mitigation Fee but deferred action on adjustment of the
Traffic Impact Fee. An update of the 2010 analysis was conducted by FCS Group, the
consultants that prepared the 2010 recommendations. Any approved adjustments to the
Construction Activity Impact or Traffic Impact fees would be reflected in the FY 2014/15
Comprehensive Fee Schedule. The recommended adjustments to the Traffic Impact Mitigation
Fee and the Construction Impact Fee are consistent with Council's adopted Core Values for
Fiscal Stability ( "Maintain ongoing fiscal stability to provide cost effective core services that
meet the needs of the community") and Quality Public Infrastructure ( "Maintain the condition
and availability of public facilities, transportation systems, and other public infrastructure ").
The increase in the Construction Impact Fee also meets the Council's 2014 -2016 Strategic Goal
to "Explore and present funding mechanisms to provide ongoing funding for street
maintenance."
FISCAL IMPACT:
-Construction Activity Impact Fees are a direct function of development and construction activity,
which is in turn linked to regional economic conditions. For the past three fiscal years,
Construction Activity Impact Fee revenue has averaged around $280,000 annually. Revenue for
the current fiscal year should be substantially higher, with $240,000 in revenue already received
through the first half of the fiscal year. This total does not include revenue that will be received
PAGE 8
MARCH 13, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: AMENDMENT OF TRAFFIC AND CONSTRUCTION ACTIVITY IMPACT
MITIGATION FEES
FISCAL IMPACT (cont'd):
from the Albright development in conjunction with the issuance of building permits for the
offices and parking garage, which will exceed $500,000.
Traffic Impact Fee revenue also trends with underlying economic conditions and development
activity, but has historically been more volatile than the Construction Activity Impact Fee, as the
fee calculation will vary significantly based on use and credit for existing trips. Over the past
five years, annual revenue has ranged from a low of $58,000 to a high of $324,000, with a five
year average of $248,000. Revenue received through the first six months of the current fiscal
year totals $371,000. As with the Construction Impact Fee, the current FY total does not yet
include revenue from the Albright development. Any increase in Traffic Impact Fees would
only apply to projects that have not yet applied for building permits.
Approval of the proposed changes to the Traffic Impact Mitigation Fee would increase revenue
for transportation improvements and traffic mitigation projects. The adjustment to the
Construction Activities Impact Fee would contribute to funding available for street maintenance.
Attachments:
1. Resolution Amending the Town of Los Gatos Construction Activity Impact Mitigation Fees
2. Resolution Amending Traffic Mitigation Impact Fees
3. Appendix A — Town of Los Gatos Traffic Mitigation Improvements List
RESOLUTION 2014-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AMENDING THE TOWN OF LOS GATOS
CONSTRUCTION ACTIVITY IMPACT MITIGATION FEES
WHEREAS, Chapter 15, Article IX of the Town of Los Gatos Town Code provides for
the mitigation of road impacts caused by construction projects; and
WHEREAS, the purpose of these fees is to assure that each new development or
expansion of use pays its fair share of the refurbishment needed to mitigate the impacts of
construction activities; and
WHEREAS, the Town Council adopted by resolution a construction activities mitigation
fee of one dollar per square foot added for both residential and non - residential development
effective July 1, 2010; and
WHEREAS, Section 15.90.035 (d) of the Town Code states that the dollar amount of the
adopted construction activities mitigation fee rates shall be adjusted on July 1 of each year to
account for changes in the cost of facilities; and
WHEREAS, no changes have been made since July 1, 2010 in the approved rates; and
WHEREAS, the increase in the Engineering News Record (ENR) Building Cost Index
for the San Francisco Region since July 2010 is 11.52 %; and
WHEREAS, Section 15.90.035 (d) of the Town Code cites the ENR Building Cost Index as the
benchmark for adjusting the Construction Activity Impact Mitigation Fee.
NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los
Gatos, County of Santa Clara, State of California that the Construction Activity Impact
Mitigation Fee shall be set at $1.12 per square foot added for new residential or non - residential
development.
ATTACHMENT
PASSED AND ADOPTED at a special meeting of the Town Council of the Town of
Los Gatos held on the 24'h day of March, 2014 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
RESOLUTION 2014-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AMENDING TRAFFIC MITIGATION IMPACT FEES
WHEREAS, Chapter 15, Article VII of the Town of Los Gatos Town Code provides for
the establishment of Traffic Impact Mitigation Fees; and
WHEREAS, the purpose of these fees is to assure that each new development or
expansion of use pays its fair share of the transportation improvements needed to accommodate
cumulative traffic impacts associated with development as anticipated in the Town's adopted
General Plan; and
WHEREAS, the Traffic Impact Mitigation Fees currently in place have been unchanged
since their original establishment and approval by the Council in 1994; and
WHEREAS, the Town Engineer has determined the estimated cost of the transportation
improvements necessary to implement the circulation element of the Town's General Plan; and
WHEREAS, the Town Engineer in conjunction with the Town Finance Manager has
determined the current and anticipated funding available to pay for the cost of construction the
transportation improvements, including the amount of funding currently available in the Town's
Traffic Impact Mitigation Fee Fund; and
WHEREAS, Section 15.70.035 (a) of the Town Code provides for periodic review of
these fees; and
WHEREAS, Section 15.70.035 (a) of the Town Code also sets forth that the Town
Council shall by resolution set the specific amount of traffic impact mitigation fees.
NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los
Gatos, County of Santa Clara, State of California that the following Traffic Mitigation Fees shall
be set, payable as set forth in Chapter 15, Article VII of the Town Code:
A. The fee for residential uses shall be calculated at $854 per Average Daily Trip (ADT),
except that a secondary dwelling unit with a floor area of six hundred square feet or less
shall be exempt from this fee.
ATTACHMENT
B. The fee for medical office use shall be calculated at $854 per ADT for the first ten trips,
and $171 for each trip thereafter.
C. The fee for all other uses shall be calculated at $854 per ADT for the first ten trips, and
$85 for each trip thereafter.
PASSED AND ADOPTED at a special meeting of the Town Council of the Town of
Los Gatos held on the 241" day of March, 2014 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
Appendix A
T
Ay
a ara a ey msportation Aulhorrty .
Town CIP = Town of Los Gatos, Capital Improvement Program and pending construction project list.
Source: Town of Los Gatos.
ATTACHMENT
(allic 1,J1111"311011 1111prolements P
Project L
List
Grovilb
Lstimated R
Related M
Mitigation
GP /VTP 2035 B
Descliption P
Eligible 000(1
GPNTP 2035 L
Los Gam m
Gatos - Almaden Rd improvements S
S 1
1,200,000 9
90.00% $
$ E
GPNTP 2035 L
LOS Gatos Blvd Widening - Samaritan Dr to Camino Del Sol - Road widening,
S 3
3,000,000 5
50.00% $
$ 1
1,500,000
new sidewalks and bike lanes $
$ 4
4,000,000 5
50.00% $
$ 2
2,ODO,000
GP /VTP 2035 I
IUD ion Ave Widenina and Sidewalks - compl-
ete Ped and bike routes $
$ 3
31000,000 5
50.00% $
$ 1
GPNTP 2035 1
Wood Rd uaewy on Santa Cruz Ave - roundabout $
$ 1
1,500,000
GPNTP 2035 C
1 W
1,200,000 5
50.00% $
$ 6
600,Opp
GP /VTP 2035 [
[Hwy 9 Los Gams Creek Trail connector - new pa th and bri a for d/bike S
$ 7
750,000 9
9.68% $
$ 7
72,6001
GP /VTP 2035 I
Ittwv 9M. Santa Cruz Ave Intersection Improvements S
500,000
Roberts Road Improvements from brid e m Universi $
S 1
1,400,000 9
90.00% $
$ 1
1,2WODO
CICIP R
Pollard Road Widening from Knowles to Yolk Avenue $
$ 6
600,000 5
50.00% $
$ 3
300,000
CIP S
Sidewalks infrll -Van Meter, Fischer and Blossom Hill Schools $
2500,000 5
50.00% $
$ 1
1,250,000
CIP W
Winchester Blvd/Lark Avenue Intersection Improvements $
$ 1
11000,000 5
50.00% S
S 5
500,000
CIP W
Westbound Lark to H 17 northbound ram -add two ri ht -rum lanes $
$ 8
850,000 9
90.000% $
$ 7
765,000
CIP U
Unfunded Deferred Street Maintenance (Annual PMS Sury e
$ 3
3,375.000
GP L
ey) $
$ 1
10,500,000 9
9.68% $
$ 1
1,016,400
Eastbound and Northbound Approaches $
$ 1
1,200,000 9
90.00% $
$ 1
1,080,000
GP C
Complete Street Improvements - Lark from Garden Hill to Los Gams Blvd $
GP C
Com late Street Ira rovements - SR 9 from Univeristv t
$ 2
21100,000 5
50.00°/. $
$ 1
1,050,000
to Los Gatos Blvd S
S 6
650,000 5
50.00 °% $
$ 3
325,000
GP C
Blossom Hill Road
to Regent Drive $
$ 3
3,000,000 5
50.00% $
$ 1
1,500,000
GP C
Com let. Strex, Ira rovements - Knowles from Pollard to Winchester $
GP C
Com late Street 1— —Ts - Winchester from Blossom Hill to Lark S
$ 2
2,000,000 5
50.00% $
$ l
l,0pp,0pp
GP B
Blossom Hill Road Widenin over High y 17 S
1,50Q,000 5
50.00% $
$ 7
75Q,000
GP L
Local Bi------------ rovements $
S 2
2,000 000 5
50.00% $
$ 1
1,000,000
Notes: T
$ 7
750,000 S
SO.00Y° $
$ 3
375,000
Total $
$ 4
47,950,000 $
$ 2
22,799,000
a ara a ey msportation Aulhorrty .
Town CIP = Town of Los Gatos, Capital Improvement Program and pending construction project list.
Source: Town of Los Gatos.
ATTACHMENT
THIS PAGE
INTENTIONALLY
LEFT BLANK
Public Hearings — continued
2. Conditional Use Permit U -13 -023 Proiect Location 346 N Santa Cruz Avenue
Property Owner: Linda Pond Pond Family Trust Applicant Matt Oetinger,
Fernwood Cellars
Requesting approval to operate a tasting room on property zoned C -2. APN 529-
04 -043. RESOLUTION 2014 -016
Jennifer Savage, Associate Planner, presented the staff report.
Matt Oetinger, applicant, spoke on the project.
Opened the Public Hearing at 8:05 p.m.
Ed Burke
- Spoke in favor of the project.
Maria Ristow
- Spoke in favor of the project.
Matt Oetinger, applicant, addressed comments.
Closed the Public Hearing at 8:10 p.m.
Council discussed the matter.
MOTION: Motion by Council Member Joe Pirzynski to make the required
findings in Attachment 1 and approve Conditional Use Permit U -13-
023 with modifications as recommended by the Planning
Commission and adopt a resolution of approval with recommended
conditions for a Conditional Use Permit (CUP) to operate a tasting
room, inclusive of language on page 4 of the staff report under
Number and Size of Tastings. Seconded by Vice Mayor Marcia
Jensen.
VOTE: Motion passed unanimously.
3. Comprehensive Fee Schedule FY 2014/15
a. Amendment of Traffic and Construction Activity Impact Mitigation Fees
(1) Adopt a resolution amending the Town of Los Gatos Traffic Impact
Mitigation Fees as provided for in Section 15.70.035 of the Town Code
RESOLUTION 2014 -017
Town Council /Parking Authority
March 24, 2014
Attachment 5
Public Hearing #3a — continued
(2) Adopt a resolution amending the Town of Los Gatos Construction
Activity Impact Mitigation Fees pursuant to Section 15.90.035(d) of the
Town Code RESOLUTION 2014 -018
Matt Morley, Director of Parks and Public Works, presented the staff report.
Opened the Public Hearing at 8:56 p.m.
Cecil Anison
- Spoke in favor of recommendation #2.
Jeff Loughridge
- Spoke in favor of recommendation #2.
Jak Van Nada
- Spoke in favor of recommendation #2.
Closed the Public Hearing at 9:04 p.m.
Council discussed the matter.
MOTION: Motion by Council Member Diane McNutt to adopt a resolution
amending the Town of Los Gatos traffic impact fees using option
as the structure. Seconded by Council Member Joe Pirzynski.
VOTE: Motion failed 2/3. Council Members Diane McNutt and Joe
Pirzynski voting yes. Mayor Steven Leonardis, Vice Mayor
Marcia Jensen, and Council Member Barbara Spector voting
no.
MOTION: Motion by Vice Mayor Marcia Jensen to adopt a resolution
amending the traffic impact mitigation fees as provided for in
Section 15.70.035 of the Town Code increasing the per trip fee to
$854 and adopting the method indicated in Option 2, and on an
annual basis, or before as needed or indicated by staff or by
Council members, that the structure is reviewed to determine it is
doing what is intended and doesn't have unintended
consequences; and that at the annual review a cost of living
increase or other appropriate increase be considered. Seconded
by Mayor Steve Leonardis.
Town Council /Parking Authority March 24, 2014
VOTE: Motion passed 3/2. Council Members Diane McNutt and Joe
Pirzynski voting no.
Public Hearings Item #315 - continued
b. Adopt resolution approving the Comprehensive Fee and Fine Schedule
FY 2014/15, to continue and amend various Town fees, rates, fines anc
charges for FY 2014/15 RESOLUTION 2014 -019
Jennifer Callaway, Budget and Finance Manager, presented the staff report.
Opened and Closed the Public Hearing at 9:32 p.m.
Council discussed the matter.
MOTION: Motion by Vice Mayor Marcia Jensen to adopt the comprehensive
fee schedule with the changes that are incorporated and
highlighted with the modification to Development Services Fees on
page 18, F. Appeals, #2, to be edited to remove "where no error
was made by Planning Commission" and change "50% of original
application fee" to say "Fees based on actual cost of time and
materials." Staff to review fines for weapons, explosives, alcohol,
and illegal dumping and bring back to Council for possible
increases. Seconded by Mayor Steven Leonardis.
VOTE: Motion passed unanimously.
MOTION: Motion by Vice Mayor Marcia Jensen to increase the credit card
fee to 2% as recommended by staff. Seconded by Mayor Steve
Leonardis.
VOTE: Motion passed unanimously.
OTHER BUSINESS
There was no other business.
ADJOURNMENT
The meeting adjourned at 9:38 p.m.
Attest:
/s/ Shelley Neis, Interim Clerk Administrator
5
Town Council/Parking Authority March 24, 2014
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ANDRE \\'L FABER
KEVIN F. KELLEY
TH0%IASP. MURPHY
SANDRA G SEPULVEDA
RALPH) SWANSON
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MASONL BRAWLEY
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ROBERTA S I IAYASIII
TEN ALMADEN BOULEVARD
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JENMFER 1'. LEUNG
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ELEVENTH FLOOR
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AOLO
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ALAN] PINNER
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BKIANL SHF,TLER
SAN JOSE, CALIFORNIA 95113 -2233
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TYLER A SHEW'EY
LINDA A CALLON
JOHN F. DOMINGUE
ANDREW) GIORGIANNI
VIVIANF WANG
JAMES P CASHMAN
HARRY A LOPEZ
TELEPHONE: (408) 286 -5800
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H SHINNY LIU
STEVEN)CASAO
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FACSIMILE: (408) 998 -5388
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8rmhGIB.
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My ,CA•Modmo, CA
RETIRED
OF COUNSEL
SASIUELJ COHEN
ROBERT HUAIPHRE \'S
SANFORDA BERLINER
JUDY JENSEN
I IUGiI L. IS ISOLA
STEVEN L. HALLGRD6ON
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April 2, 2014
VIA EMAIL AND U.S. MAIL
Mayor Steven Leonardis
Town Council Members
Town Hall
110 E. Main Street
Los Gatos, CA 95030
sleonardisnalosRatosca.eov
COuncil@losgatosca.gov
Re: Request for continuance
Traffic Impact Fee increase
Our File No.: 09427 -065
Dear Mayor Leonardis and Members of the Town Council:
This office represents the interests of the potential developers of the North Forty Project,
Grosvenor Americas and SummerHill Homes. By this letter we are requesting that the matter of
adoption of the increase in traffic impact fees not be heard at your April 7, 2014 meeting, but rather
be continued at least two weeks, to the Apri121, 2014 meeting. From the viewpoint of Grosvenor
and SummerHill, the tentative action taken by the Council at its meeting on March 24, 2014 was
precipitous, and can end up having an enormous impact on the future viability of any project to be
built on the North Forty Property. As shown in the Staff PowerPoint presentation, the current fee for
an estimated North Forty Project is $2,298,300. Under the tentative action, this fee would increase
by a factor of nearly 600 %, to be in excess of $12,000,000!
There are a number of concerns that Grosvenor and SummerHill have with respect to this
enormous increase. The first, of course is the effect it will have on the viability of the project itself.
48248017- 7434v1
ALFG427065
ATTACHMENT 6
Steven Leonardis
April 2, 2014
In addition. there are uncertainties as to how the fee would be applied to the project. For
example, how are reimbursements and credits to be handled? To what extent are fee credits allowed
for traffic improvements performed by Grosvenor and SummerHill on the North Forty Project itself?
Furthermore, there are certain traffic improvements that Grosvenor and SummerHill had considered
performing (and which they have been told by staff would effectively be required) that are not
environmental mitigations for traffic cause by the project. The continuing ability to perform those
improvements is in question as is, if they are performed, how those costs should be credited against
traffic improvement fees. In order to understand these issues, there must be a very clear policy on
both credits and reimbursements that would apply to the very large sums of money that are being
requested from this project.
Because of the unexpected nature of the Council's actions on March 24 (when the staff had
been recommending merely a fee increase but not this completely new approach to setting the fees),
Grosvenor and SummerHill also need additional time to study the traffic report itself and the
allocations of improvement costs that have been made by the consultants. There is not sufficient
time to do this in advance of the April 7 meeting.
This letter is not intended to be exhaustive as to all concerns that Grosvenor and SummerHill
have with regard to the fee proposal, and is not intended to waive any legal rights that Grosvenor or
SummerHill may have with respect to this fee if it is ultimately approved.
We look forward to working with the Town with regard to traffic impact fees, but there is
quite a bit of clarity that is needed before we can understand the full effect. Thank you very much
for your consideration of this request.
Very truly yours,
BERLIN��EN
ANDREW L. FABER
E -Mail: andrew.faber@berliner.com
ALF:tah
cc: Greg Larson, Town Manager (manager @losgatosca.gov)
Robert Schultz, Town Attorney (attorney @losgatosca.gov)
Shelley Neis, Interim Clerk Administrator (Clerk @LosGatosCA.gov)
Don Capobres, Grosvenor (Don.Capobres @grosvenor.com)
Wendi Baker, SummerHill (WBaker @shhomes.com)
4824 - 6017 -7434. v. I
4824 -6017- 7434v1 _2-
ALFl09427065