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Desk Item�wNOF � s aitea DATE: 1003 FROM: MAY 19, 2014 MAYOR AND TOWN COUNCIL GREG LARSON, TOWN MANAGER MEETING DATE: 05/19/2014 ITEM NO: 5 DESK ITEM SUBJECT: AMENDMENT OF TRAFFIC IMPACT MITIGATION FEES ADOPT A RESOLUTION 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. REMARKS: After the distribution of the May 19, 2014 Town Council agenda, staff received inquiries from Council, and is providing the following information: What is the existing practice, if any, with respect to granting credits against Traffic Mitigation Impact fees when a developer takes an action with respect to the Project List? The current practice does not include providing credits against Traffic Mitigation Impact fees. This has not been an issue for several reasons, including the discount that has been applied to the fees and the lack of an established list of projects that would apply. Generally, is the choice to undertake a project on the list voluntary or is it more often required as mitigation under the EIR or other condition of approval? Projects may be listed under an EIR, and in that case their completion is required. The calculation of impact fees is separate and also non - discretionary. Because there is not a current list of projects to credit against, both the payment of the fees and the completion of the mitigation measure have been required. Also, there have often been "community benefit' contributions that have funded additional projects. Finally, staff at times has required completion of specific projects as part of the conditions of approval, outside of other payments or construction of traffic mitigation projects. These latter two items have not been an issue as the established discount in fees has offset these costs to the developers. PREPARED BY: MATT MORLEYZdubeic Director of Parks Work Reviewed by: PSI Assistant Town Manager Town Attorney Finance N:\PPW\ MANAGEMENT \COUNCIL \COUNCIL REPORTS\2014 Reports \051914 \TIMF Town Cowcil.De k Item.docx PAGE 2 MAY 19, 2014 MAYOR AND TOWN COUNCIL SUBJECT: AMENDMENT OF TRAFFIC IMPACT MITIGATION FEES REMARKS (cont'd): If there has been credit granted in the past, how has it been done -- by dollars contributed whether the project is completed or not, or is actual completion of the project required? Credits are not currently issued. If the proposed credit is a new practice, what is the answer to the above question? The credit is a new element of the fee structure to avoid double charging for the same improvement. If the developer completes the project, the developer will receive credit for the cost of the project as listed on the Town's project list with the credit applied to the total traffic impact fee due for the project. This is likely to be the case where the project is completed as mitigation under an EIR. Otherwise the developer would pay the impact fee.