Staff Report
PREPARED BY: MATT MORLEY
PARKS AND PUBLIC WORKS DIRECTOR
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/06/2016
ITEM NO: 6
DATE: NOVEMBER 29, 2016
TO: TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION APPROVING THE COUNCIL POLICY COMMITTEE
RECOMMENDATIONS FOR THE MODIFICATION OF THE TRAFFIC IMPACT POLICY
RECOMMENDATION:
Adopt a resolution approving the Council Policy Committee recommendations for the
modification of the Traffic Impact Policy (Attachment 1).
BACKGROUND:
The Traffic Impact Mitigation fee was revised by Council in 2014. The fee is intended to capture
the costs of traffic impacts related to growth from new construction. This fee has been applied
to new developments and changes that intensify the previous use. The fees are based on a
study that identified the Town’s traffic improvement needs related to growth and the expected
cost per vehicle trip necessary to mitigate the growth. The vehicle trips associated with
individual uses are most often identified through data provided by the Institute of Traffic
Engineers (ITE). A Traffic Impact Policy was adopted in 2014 to provide guidance on
implementing the fee (see Attachment 2).
On November 17, 2016 the Policy Committee reviewed the Traffic Impact Policy as part of its
work reviewing policies.
DISCUSSION:
The methodology the Town utilizes for recovering traffic impact fees aligns well for most
situations. However, in the case of the Central Business District (downtown), it is typical for
uses to change frequently with traffic generated not by a single use, but rather by the
PAGE 2 OF 3
SUBJECT: ADOPT A RESOLUTION APPROVING POLICY COMMITTEE RECOMMENDATIONS FOR
THE MODIFICATION OF THE TRAFFIC IMPACT FEE POLICY
NOVEMBER 23, 2016
S:\COUNCIL REPORTS\2016\12-06-16\06 Traffic Impact Policy\06 Staff Report FINAL.docx 12/1/2016 6:23 PM MM
DISCUSSION (cont’d):
downtown as a whole. This occurs because the downtown is a destination, where people go to
take advantage of a variety of restaurants, services, shops, and activities and to experience the
ambiance and charm of the destination. In order to sustain the downtown as this type of
experience, the Council may wish to facilitate changes in use and acknowledge that these
changes do not create a growth-related traffic impact. With a modification to the Traffic
Impact Policy, fees could be reduced or eliminated that are currently inhibiting new businesses
from establishing and contributing to the vitality of the downtown.
On November 17, the Council Policy Committee discussed a proposed change to the Traffic
Impact Policy and agreed that changes in use downtown should be exempt from Traffic Impact
Mitigation fees (see redline version in Attachment 3).
The modified Policy primarily addresses the change in use of a space. Where structures are
expanded or new structures are added, the additional square footage will still be required to
pay the traffic impact fee at the ITE Shopping Center rate. Shopping Center is utilized as it
represents a blend of uses.
Several other minor changes are included in the proposed modifications. For example, the
exemption for secondary units would apply to all secondary units instead of only those units
that are 600 square feet or less.
CONCLUSION:
Staff recommends that the Town Council adopt a resolution approving the Council Policy
Committee recommendations for the modification of the Traffic Impact Policy.
COORDINATION:
This report has been coordinated with the Economic Vitality Manager and the Community
Development Department.
FISCAL IMPACT:
The existing Traffic Impact Fees may be a deterrent to changes in use in the downtown. The
proposed Policy modifications that forego Traffic Impact Fee charges may result in increased
changes in use and a more sustainable downtown with corresponding increases in sales tax
revenue.
PAGE 3 OF 3
SUBJECT: ADOPT A RESOLUTION APPROVING POLICY COMMITTEE RECOMMENDATIONS FOR
THE MODIFICATION OF THE TRAFFIC IMPACT FEE POLICY
NOVEMBER 23, 2016
S:\COUNCIL REPORTS\2016\12-06-16\06 Traffic Impact Policy\06 Staff Report FINAL.docx 12/1/2016 6:23 PM MM
Attachments:
1. Resolution with proposed Traffic Impact Policy
2. Current Traffic Impact Resolution and Policy
3. Redlined Traffic Impact Mitigation Policy
ATTACHMENT 1
RESOLUTION 2016-
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AMENDING THE TRAFFIC IMPACT POLICY
WHEREAS, on August 5, 1991, the Town of Los Gatos adopted Resolution 1991-174
adopting a Traffic Impact Policy; and
WHEREAS, Chapter 15, Article VII of the Town of Los Gatos Town Code provides for
the establishment 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; and
WHEREAS, on May 19, 2014, the Town Council adopted Resolution 2014-017
confirming actions taken by the Council on March 24, 2014 amending the Town’s Traffic Impact
Mitigation Fees; and
WHEREAS, on May 19, 2014, the Town Council, in conjunction with amending the
Town’s Traffic Impact Mitigation Fees also adopted a number of additional provisions related to
the assessment of Traffic Impact Mitigation Fees, including provisions related to specialty retail
uses, traffic credit for existing or former uses, secondary dwelling units, low income housing,
and credit for payment and construction of Traffic Mitigation Improvement Projects; and
WHEREAS, on August 19, 2014 the Town Council revised the traffic impact policy
thereby rescinding provisions of Resolution No. 2002-175 related to Community Benefit
offerings for traffic impact mitigation; and
WHEREAS, the traffic impact policy should more accurately reflect the traffic impacts
from changes in use within the Central Business District (Downtown);
NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los
Gatos, County of Santa Clara, State of California that the attached Traffic Impact Policy (Exhibit
A), dated December 6, 2016 is hereby adopted.
ATTACHMENT 1
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos held on the 6th day of December, 2016 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
ATTACHMENT 1
Exhibit A
TOWN OF LOS GATOS
TRAFFIC IMPACT POLICY
December 6, 2016
I. DEFINITIONS
Average Daily Trips. Average Daily Trips (ADT) are the total number of trips, both in-bound and out-
bound, within a 24 hour weekday period, generated by a particular use or development.
Pass-By Trip. Trips generated by the proposed Project that would be attracted from traffic passing the
proposed project site on an adjacent street that contains direct access to the Project.
Peak Hour Trip. Peak Hour Trips are vehicle trips, both in-bound and out-bound, occurring during a one
hour period either during the A.M. Peak (7 A.M. to 9 A.M.) or the P.M. Peak (4 P.M. to 6 P.M.),
generated by a particular use or Project.
Project. A Project subject to this policy encompasses all land use development projects affecting the
built environment, including changes in occupancy or intensification of existing uses, over which the
Town has administrative or legislative authority, that require review and approval and issuance of a
building permit, certificate of use or occupancy, or other land use approval by Town staff, Commissions,
or Council.
Specialty Retail. Specialty Retail uses are defined as walk-in and impulse businesses such as juice bars,
yogurt shops, coffee shops, donut shops, and similar uses which do not generally serve meals and have
limited or no seating. Specialty Retail uses are defined under this policy for purposes of establishing trip
generation data and this definition does not provide any land use or zoning guidance.
II. GENERAL CONDITIONS AND APPLICABILITY
1. This 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.
2. Projects that are determined by the Town to generate one or more new net Average Daily Trips are
subject to this policy.
3. Projects that will generate 20 or more new Peak Hour Trips shall be required to complete a
comprehensive traffic impact analysis report as described in more detail in Section VI, TRAFFIC
IMPACT MITIGATION REPORT.
4. Consistent with Transportation Impact Analysis (TIA) Guidelines adopted by the Santa Clara County
Transportation Authority (VTA) Congestion Management Program, Pass-by Trips shall not be
considered in calculating the 20 new Peak Hour Trip threshold that triggers the requirement for
conducting a comprehensive traffic impact analysis report.
5. In order to determine how much new traffic a Project will generate, the Town will use applicable trip
generation rates and pass-by trip data from the most recent edition of the Institute of Traffic
ATTACHMENT 1
Engineers (ITE) Trip Generation Manual. Alternatively, trip generation rates from the following
resources may be used if determined by the Town to be more appropriate than the available ITE
rates: San Diego Association of Governments (SanDAG); California Department of Transportation
(Caltrans); or the City of San Jose. A Town-sponsored or peer-reviewed traffic study may also be
used to determine trip generation rates.
6. Nothing in this Policy shall prohibit or restrict a Project applicant from completing a traffic study for
a Project anticipated to generate less than 20 new Peak Hour trips.
III. TRAFFIC IMPACT MITIGATION FEES
1. All Projects that generate one or more new Average Daily Trips are required to pay Traffic Impact
Mitigation Fees.
2. All required Traffic Impact Mitigation Fees shall be paid in full to the Town in association with and
prior to issuance of a building permit. If no building permit is required, the fee shall be paid in full
prior to issuance of a certificate of use and occupancy, or similar entitlement. The amount due shall
be calculated based on the fee in place as approved by the Town Council by resolution at the time
the fee is paid.
3. The per trip amount of the fee shall be as set forth by the Town Council by resolution, pursuant to
Town Municipal Code, Chapter 15, Article VII, Traffic Impact Mitigation Fees.
4. Fees shall be calculated by multiplying net new ADT by the per trip amount in place at the time the
fees are paid.
5. ADT shall be determined by using the applicable trip generation rate and pass-by trip data from the
most recent edition of the Institute of Traffic Engineers (ITE) Trip Generation Manual. When a use is
not listed in the ITE Trip Generation Manual, or where ADT data is not available, the Town Traffic
Engineer shall use available Peak Hour Trip data or select the most appropriate trip generation rate
and pass-by trip classification for use in calculating ADT. Trip generation rates from alternate
sources may be used if determined by the Town Traffic Engineer to be more appropriate than the
available ITE rates. Examples of alternate sources of data include: San Diego Association of
Governments (SanDAG); California Department of Transportation (Caltrans); City of San Jose;
comparable store/business traffic studies.
IV. CREDIT FOR EXISTING TRIPS
1. In calculating new Peak Hour Trips for purposes of determining whether or not a traffic impact
analysis report is required pursuant to this Policy, trip credit shall be granted for an existing use or
the most recent former use within the past five years prior to submittal of a Project application.
2. In calculating new Average Daily Trips for purposes of determining the amount of the Traffic Impact
Mitigation Fee due, trip credit shall be granted for an existing use or the most recent former use
within the past five years prior to submission of a Project application.
3. Where the property is vacant, the most recent former use within the past five years prior to
submission of a Project application shall be used. If the property has been vacant for more than five
ATTACHMENT 1
years, no credit shall be given. Vacancy for purposes of Fee Credit shall include any vacant or
unoccupied property, structure or building where no active, approved use is currently present.
4. Where a portion of the space is changing use, credit will apply to the proportionate square footage
of the space under review.
5. Where the change in use results in fewer trips than the existing or former use, no credit or refund
will be due the applicant.
V. CREDIT FOR TRAFFIC MITIGATION IMPROVEMENTS
1. 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, as a condition of approval, is required to either
construct at the developer’s sole cost, or contribute a fixed or percentage amount of funding toward
future construction of the listed improvement. 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.
2. No credit shall be given for any public right-of-way dedication required for completion of projects
listed on Attachment 1.
3. Credit will be given on a case-by-case basis and shall not exceed the impact fee payable. Any
request for credit shall be made prior to the payment of the Traffic Impact Mitigation Fees. No
credit shall be given for installation of Town-standard frontage improvements, Project access
improvements, or internal circulation improvements.
4. Credit shall only be granted for payment of costs or construction of projects listed in Attachment 1,
unless otherwise approved by the Town Council.
VI. TRAFFIC IMPACT ANALYSIS REPORT
1. Traffic impact analysis reports required pursuant to this policy shall be prepared consistent with the
Transportation Impact Analysis (TIA) Guidelines adopted by the Santa Clara County Transportation
Authority (VTA) Congestion Management Program (August 2009), or as such Guidelines may be
amended or updated from time to time, except that the threshold for preparation of a traffic report
under this policy is 20 new Peak Hour trips, whereas the VTA TIA threshold is 100 new Peak Hour
Trips.
2. Traffic impact analysis reports shall be funded in full by the project applicant. Project applicants
shall deposit funds with the Town in an amount deemed necessary to cover the cost of an
independent consultant report, plus staff administrative and review costs. Following deposit of
funds, the Town will hire a professional transportation consultant to complete the required study.
Alternatively, the project applicant may hire their own professional engineering or transportation
consultant to complete a traffic study, in which case they must deposit with the Town funds
sufficient for the Town to hire a professional firm to conduct a peer review of the applicant-
prepared traffic report, plus staff administrative and review costs.
ATTACHMENT 1
3. The Town shall conduct an open, competitive process to establish a list of firms which are qualified
to prepare traffic reports and/or conduct peer review of traffic studies under contract to the Town.
The list of firms shall be selected in accordance with the Town Purchasing Policy. A new list shall be
created at a minimum of once every five years.
VII. OTHER PROVISIONS
1. The Institute of Traffic Engineers (ITE) Trip Generation Manual trip generation rates for Specialty
Retail Center shall apply to all Specialty Retail uses as defined in this policy.
2. A secondary dwelling unit shall be exempt from this policy.
3. 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.
4. Uses within the Central Business District (C-2 Zone) are expected to change periodically as part of
the natural business cycle. For the purpose of Traffic Impact Fees, changes in use without changes
in net building square footage within the C-2 Zone shall not be considered to create a traffic impact,
shall be exempt from this policy, and no fees shall be charged for a change in use. Any increases in
building square footage shall pay impact fees at the ITE Shopping Center rate or comparable
equivalent rate for the expanded area, as determined by the Town Traffic Engineer.
ATTACHMENT 1
RESOLUTION 2014 -059
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AMENDING THE TRAFFIC IMPACT POLICY
AND RESCINDING RESOLUTION 1991 -174
WHEREAS, on August 5, 1991, the Town of Los Gatos adopted Resolution 1991 -174
adopting a Traffic Impact Policy; and
WHEREAS, Chapter 15, Article VII of the Town of Los Gatos Town Code provides for
the establishment of Traffic hnpact 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; and
WHEREAS, on May 19, 2014, the Town Council adopted Resolution 2014 -017
confirming actions taken by the Council on March 24, 2014 amending the Town's Traffic Impact
Mitigation Fees; and
WHEREAS, on May 19, 2014, the Town Council, in conjunction with amending the
Town's Traffic Impact Mitigation Fees also adopted a number of additional provisions related to
the assessment of Traffic Impact Mitigation Fees, including provisions related to specialty retail
uses, traffic credit for existing or fonner uses, secondary dwelling units, low income housing,
and credit for payment and construction of Traffic Mitigation Improvement Projects; and
WHEREAS, a revision of the 1991 Traffic Impact Policy is needed to conform the
Town's Traffic Impact Policy with the recent changes to the Town's Traffic Impact Mitigation
Fees enacted with the adoption of Resolution 2014 -017.
NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los
Gatos, County of Santa Clara, State of California that the attached Traffic Impact Policy (Exhibit
A), dated August 19, 2014 is hereby adopted.
FURTHER RESOLVED, this resolution rescinds provisions of Resolution No. 2002-
175 related to Community Benefit offerings for projects generating more than five new peak
hour trips.
FURTHER RESOLVED, the elimination of Community Benefit shall only apply to
traffic impacts and not to Community Benefit requirements for projects set forth elsewhere in
Council Policy or Town Code.
FURTHER RESOLVED, this resolution rescinds Resolution No. 1991 -174.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos held on the 19`x' day of August, 2014 by the following vote:
COUNCIL MEMBERS:
AYES: Marcia Jensen, Diane McNutt, Joe Pirzynski, Barbara Spector, Mayor Steven Leonardis
NAYS:
ABSENT:
MAYOR OF TIM—N-OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
t
C-LERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
Exhibit A
TOWN OF LOS GATOS
TRAFFIC IMPACT POLICY
Approved August 19, 2014
I. DEFINITIONS
Average Daily Trips. Average Daily Trips (ADT) are the total number of trips, both in -bound and out-
bound, within a 24 hour weekday period, generated by a particular use or development.
Pass -By Trip. Trips generated by the proposed Project that would be attracted from traffic passing the
proposed project site on an adjacent street that contains direct access to the Project.
Peak Hour Trip. Peak Hour Trips are vehicle trips, both in -bound and out - bound, occurring during a one
hour period either during the A.M. Peak (7 A.M. to 9 A.M.) or the P.M. Peak (4 P.M. to 6 P.M.),
generated by a particular use or Project.
Project. A Project subject to this policy encompasses all land use development projects affecting the
built environment, including changes in occupancy or intensification of existing uses, over which the
Town has administrative or legislative authority, that require review and approval and issuance of a
building permit, certificate of use or occupancy, or other land use approval by Town staff, Commissions,
or Council.
Specialty Retail. Specialty Retail uses are defined as walk -in and impulse businesses such as juice bars,
yogurt shops, coffee shops, donut shops, and similar uses which do not generally serve meals and have
limited or no seating. Specialty Retail uses are defined under this policy for purposes of establishing trip
generation data and this definition does not provide any land use or zoning guidance.
II. GENERAL CONDITIONS AND APPLICABILITY
1. This 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.
2. Projects that are determined by the Town to generate one or more new net Average Daily Trips are
subject to this policy.
3. Projects that will generate 20 or more new Peak Hour Trips shall be required to complete a
comprehensive traffic impact analysis report as described in more detail in Section VI TRAFFIC
IMPACT MITIGATION REPORT.
4. Consistent with Transportation Impact Analysis (TIA) Guidelines adopted by the Santa Clara County
Transportation Authority (VTA) Congestion Management Program, Pass -by Trips shall not be
considered in calculating the 20 new Peak Hour Trip threshold that triggers the requirement for
conducting a comprehensive traffic impact analysis report.
5. In order to determine how much new traffic a Project will generate, the Town will use applicable trip
generation rates and pass -by trip data from the most recent edition of the Institute of Traffic
Town of Los Gatos Traffic Impact Policy
August 19, 2014
Page 2
Engineers (ITE) Trip Generation Manual. Alternatively, trip generation rates from the following
resources may be used if determined by the Town to be more appropriate than the available ITE
rates: San Diego Association of Governments (SanDAG); California Department of Transportation
Caltrans); or the City of San Jose. A Town - sponsored or peer- reviewed traffic study may also be
used to determine trip generation rates.
6. Nothing in this Policy shall prohibit or restrict a Project applicant from completing a traffic study for
a Project anticipated to generate less than 20 new Peak Hour trips.
III. TRAFFIC IMPACT MITIGATION FEES
1. All Projects that generate one or more new Average Daily Trips are required to pay Traffic impact
Mitigation Fees.
2. All required Traffic Impact Mitigation Fees shall be paid in full to the Town in association with and
prior to issuance of a building permit. If no building permit is required, the fee shall be paid in full
prior to issuance of a certificate of use and occupancy, or similar entitlement. The amount due shall
be calculated based on the fee in place as approved by the Town Council by resolution at the time
the fee is paid.
3. The per trip amount of the fee shall be as set forth by the Town Council by resolution, pursuant to
Town Municipal Code, Chapter 15, Article VII, Traffic Impact Mitigation Fees.
4. Fees shall be calculated by multiplying net new ADT by the per trip amount in place at the time the
fees are paid.
5. ADT shall be determined by using the applicable trip generation rate and pass -by trip data from the
most recent edition of the Institute of Traffic Engineers (ITE) Trip Generation Manual. When a use is
not listed in the ITE Trip Generation Manual, or where ADT data is not available, the Town Traffic
Engineer shall use available Peak Hour Trip data or select the most appropriate trip generation rate
and pass -by trip classification for use in calculating ADT. Trip generation rates from alternate
sources may be used if determined by the Town Traffic Engineer to be more appropriate than the
available ITE rates. Examples of alternate sources of data include: San Diego Association of
Governments (SanDAG); California Department of Transportation (Caltrans); City of San Jose;
comparable store /business traffic studies.
IV. CREDIT FOR EXISTING TRIPS
1. In calculating new Peak Hour Trips for purposes of determining whether or not a traffic impact
analysis report is required pursuant to this Policy, trip credit shall be granted for an existing use or
the most recent former use within the past five years prior to submittal of a Project application.
2. In calculating new Average Daily Trips for purposes of determining the amount of the Traffic Impact
Mitigation Fee due, trip credit shall be granted for an existing use or the most recent former use
within the past five years prior to submission of a Project application.
Town of Los Gatos Traffic Impact Policy
August 19, 2014
Page 3
3. Where the property is vacant, the most recent former use within the past five years prior to
submission of a Project application shall be used. If the property has been vacant for more than five
years, no credit shall be given. Vacancy for purposes of Fee Credit shall include any vacant or
unoccupied property, structure or building where no active, approved use is currently present.
4. Where a portion of the space is changing use, credit will apply to the proportionate square footage
of the space under review.
5. Where the change in use results in fewer trips than the existing or former use, no credit or refund
will be due the applicant.
V. CREDIT FOR TRAFFIC MITIGATION IMPROVEMENTS
1. 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, as a condition of approval, is required to either
construct at the developer's sole cost, or contribute a fixed or percentage amount of funding toward
future construction of the listed improvement. 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.
2. No credit shall be given for any public right -of -way dedication required for completion of projects
listed on Attachment 1.
3. Credit will be given on a case -by -case basis and shall not exceed the impact fee payable. Any
request for credit shall be made prior to the payment of the Traffic Impact Mitigation Fees. No
credit shall be given for installation of Town - standard frontage improvements, Project access
improvements, or internal circulation improvements.
4. Credit shall only be granted for payment of costs or construction of projects listed in Attachment 1,
unless otherwise approved by the Town Council.
VI. TRAFFIC IMPACT ANALYSIS REPORT
1. Traffic impact analysis reports required pursuant to this policy shall be prepared consistent with the
Transportation Impact Analysis (TIA) Guidelines adopted by the Santa Clara County Transportation
Authority (VTA) Congestion Management Program (August 2009), or as such Guidelines may be
amended or updated from time to time, except that the threshold for preparation of a traffic report
under this policy is 20 new Peak Hour trips, whereas the VTA TIA threshold is 100 new Peak Hour
Trips.
2. Traffic impact analysis reports shall be funded in full by the project applicant. Project applicants
shall deposit funds with the Town in an amount deemed necessary to cover the cost of an
independent consultant report, plus staff administrative and review costs. Following deposit of
funds, the Town will hire a professional transportation consultant to complete the required study.
Town of Los Gatos Traffic Impact Policy
August 19, 2014
Page 4
Alternatively, the project applicant may hire their own professional engineering or transportation
consultant to complete a traffic study, in which case they must deposit with the Town funds
sufficient for the Town to hire a professional firm to conduct a peer review of the applicant -
prepared traffic report, plus staff administrative and review costs.
3. The Town shall conduct an open, competitive process to establish a list of firms which are qualified
to prepare traffic reports and /or conduct peer review of traffic studies under contract to the Town.
The list of firms shall be selected in accordance with the Town Purchasing Policy. A new list shall be
created at a minimum of once every five years.
VII. OTHER PROVISIONS
1. The Institute of Traffic Engineers (ITE) Trip Generation Manual trip generation rates for Specialty
Retail Center shall apply to all Specialty Retail uses as defined in this policy.
2. A secondary dwelling unit with a floor area of six hundred square feet or less shall be exempt from
this policy.
3. 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.
Town of Los Gatos Traffic Impact Policy
August 19, 2014
Page 5
Attachment 1
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Source Tours~ of Los Catos.
ATTACHMENT 3
Exhibit A
TOWN OF LOS GATOS
TRAFFIC IMPACT POLICY
December 6, 2016
I. DEFINITIONS
Average Daily Trips. Average Daily Trips (ADT) are the total number of trips, both in-bound and out-
bound, within a 24 hour weekday period, generated by a particular use or development.
Pass-By Trip. Trips generated by the proposed Project that would be attracted from traffic passing the
proposed project site on an adjacent street that contains direct access to the Project.
Peak Hour Trip. Peak Hour Trips are vehicle trips, both in-bound and out-bound, occurring during a one
hour period either during the A.M. Peak (7 A.M. to 9 A.M.) or the P.M. Peak (4 P.M. to 6 P.M.),
generated by a particular use or Project.
Project. A Project subject to this policy encompasses all land use development projects affecting the
built environment, including changes in occupancy or intensification of existing uses, over which the
Town has administrative or legislative authority, that require review and approval and issuance of a
building permit, certificate of use or occupancy, or other land use approval by Town staff, Commissions,
or Council.
Specialty Retail. Specialty Retail uses are defined as walk-in and impulse businesses such as juice bars,
yogurt shops, coffee shops, donut shops, and similar uses which do not generally serve meals and have
limited or no seating. Specialty Retail uses are defined under this policy for purposes of establishing trip
generation data and this definition does not provide any land use or zoning guidance .
II. GENERAL CONDITIONS AND APPLICABILITY
1. This 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.
2. Projects that are determined by the Town to generate one or more new net Average Daily Trips are
subject to this policy.
3. Projects that will generate 20 or more new Peak Hour Trips shall be required to complete a
comprehensive traffic impact analysis report as described in more detail in Section VI, TRAFFIC
IMPACT MITIGATION REPORT.
4. Consistent with Transportation Impact Analysis (TIA) Guidelines adopted by the Santa Clara County
Transportation Authority (VTA) Congestion Management Program, Pass-by Trips shall not be
considered in calculating the 20 new Peak Hour Trip threshold that triggers the requirement for
conducting a comprehensive traffic impact analysis report.
5. In order to determine how much new traffic a Project will generate, the Town will use applicable trip
generation rates and pass-by trip data from the most recent edition of the Institute of Traffic
Town of Los Gatos Traffic Impact Policy
August 19, 2014
Page 2
Engineers (ITE) Trip Generation Manual. Alternatively, trip generation rates from the following
resources may be used if determined by the Town to be more appropriate than the available ITE
rates: San Diego Association of Governments (SanDAG); California Department of Transportation
(Caltrans); or the City of San Jose. A Town-sponsored or peer-reviewed traffic study may also be
used to determine trip generation rates.
6. Nothing in this Policy shall prohibit or restrict a Project applicant from completing a traffic study for
a Project anticipated to generate less than 20 new Peak Hour trips.
III. TRAFFIC IMPACT MITIGATION FEES
1. All Projects that generate one or more new Average Daily Trips are required to pay Traffic Impact
Mitigation Fees.
2. All required Traffic Impact Mitigation Fees shall be paid in full to the Town in association with and
prior to issuance of a building permit. If no building permit is required, the fee shall be paid in full
prior to issuance of a certificate of use and occupancy, or similar entitlement. The amount due shall
be calculated based on the fee in place as approved by the Town Council by resolution at the time
the fee is paid.
3. The per trip amount of the fee shall be as set forth by the Town Council by resolut ion, pursuant to
Town Municipal Code, Chapter 15, Article VII, Traffic Impact Mitigation Fees.
4. Fees shall be calculated by multiplying net new ADT by the per trip amount in place at the time the
fees are paid.
5. ADT shall be determined by using the applicable trip generation rate and pass-by trip data from the
most recent edition of the Institute of Traffic Engineers (ITE) Trip Generation Manual. When a use is
not listed in the ITE Trip Generation Manual, or where ADT data is not available, the Town Traffic
Engineer shall use available Peak Hour Trip data or select the most appropriate trip generation rate
and pass-by trip classification for use in calculating ADT. Trip generation rates from alternate
sources may be used if determined by the Town Traffic Engineer to be more appropriate than the
available ITE rates. Examples of alternate sources of data include: San Diego Association of
Governments (SanDAG); California Department of Transportation (Caltrans); City of San Jose;
comparable store/business traffic studies.
IV. CREDIT FOR EXISTING TRIPS
1. In calculating new Peak Hour Trips for purposes of determining whether or not a traffic impact
analysis report is required pursuant to this Policy, trip credit shall be granted for an existing use or
the most recent former use within the past five years prior to submittal of a Project application.
2. In calculating new Average Daily Trips for purposes of determining the amount of the Traffic Impact
Mitigation Fee due, trip credit shall be granted for an existing use or the most recent former use
within the past five years prior to submission of a Project application.
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August 19, 2014
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3. Where the property is vacant, the most recent former use within the past five years prior to
submission of a Project application shall be used. If the property has been vacant for more than five
years, no credit shall be given. Vacancy for purposes of Fee Credit shall include any vacant or
unoccupied property, structure or building where no active, approved use is currently present.
4. Where a portion of the space is changing use, credit will apply to the proportionate square footage
of the space under review.
5. Where the change in use results in fewer trips than the existing or former use, no credit or refund
will be due the applicant.
V. CREDIT FOR TRAFFIC MITIGATION IMPROVEMENTS
1. 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, as a condition of approval, is required to e ither
construct at the developer’s sole cost, or contribute a fixed or percentage amount of funding toward
future construction of the listed improvement. 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.
2. No credit shall be given for any public right-of-way dedication required for completion of projects
listed on Attachment 1.
3. Credit will be given on a case-by-case basis and shall not exceed the impact fee payable. Any
request for credit shall be made prior to the payment of the Traffic Impact Mitigation Fees. No
credit shall be given for installation of Town-standard frontage improvements, Project access
improvements, or internal circulation improvements.
4. Credit shall only be granted for payment of costs or construction of projects listed in Attachment 1,
unless otherwise approved by the Town Council.
VI. TRAFFIC IMPACT ANALYSIS REPORT
1. Traffic impact analysis reports required pursuant to this policy shall be prepared consistent with the
Transportation Impact Analysis (TIA) Guidelines adopted by the Santa Clara County Transportation
Authority (VTA) Congestion Management Program (August 2009), or as such Guidelines may be
amended or updated from time to time, except that the threshold for preparation of a traffic report
under this policy is 20 new Peak Hour trips, whereas the VTA TIA threshold is 100 new Peak Hour
Trips.
2. Traffic impact analysis reports shall be funded in full by the project applicant. Project applicants
shall deposit funds with the Town in an amount deemed necessary to cover the cost of an
independent consultant report, plus staff administrative and review costs. Following deposit of
funds, the Town will hire a professional transportation consultant to complete the required study.
Town of Los Gatos Traffic Impact Policy
August 19, 2014
Page 4
Alternatively, the project applicant may hire their own professional engineering or transportation
consultant to complete a traffic study, in which case they must deposit with the Town funds
sufficient for the Town to hire a professional firm to conduct a peer review of the ap plicant-
prepared traffic report, plus staff administrative and review costs.
3. The Town shall conduct an open, competitive process to establis h a list of firms which are qualified
to prepare traffic reports and/or conduct peer review of traffic studies under contract to the Town.
The list of firms shall be selected in accordance with the Town Purchasing Policy. A new list shall be
created at a minimum of once every five years.
VII. OTHER PROVISIONS
1. The Institute of Traffic Engineers (ITE) Trip Generation Manual trip generation rates for Specialty
Retail Center shall apply to all Specialty Retail uses as defined in this policy.
2. A secondary dwelling unit with a floor area of six hundred square feet or less shall be exempt from
this policy.
3. The Town Council may exempt housing developments for very low, low and moderate income
residents (as defined by Town Ordinance, General Plan, or statu te) 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.
3.4. Uses within the Central Business District (C-2 Zone) are expected to change periodically as part of
the natural business cycle. For the purpose of Traffic Impact Fees, changes in use without changes
in net building square footage within the C-2 Zone shall not be considered to create a traffic impact,
shall be exempt from this policy, and no fees shall be charged for a change in use. Any increases in
building square footage shall pay impact fees at the ITE Shopping Center rate or comparable
equivalent rate for the expanded area, as determined by the Town Traffic Engineer.
Formatted: Left, Indent: Left: 0.5", No
bullets or numbering
Town of Los Gatos Traffic Impact Policy
August 19, 2014
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