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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 e'Y = 'daliey 1 rerra'L'orweon 1' ar. ZUSv oV L .ta U; ara Vr ;F &)/ Tra cport&Vo1 Authomft 7oven CIP = Tovm & UoE %atoms. Cscftal mr orofe`iG t Prory&r, 8Yd} LtiErrl7tt][p ri TJr"4 uG tibR axcy'c t 71St. 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. 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 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 Page 5