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Home My WebLink AboutPW Impose Traffic Mitigation FeesC,ry OF�� Agenda Item No: 12 Meeting Date: Nov. 15, 2004 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Public Works Prepared by: //l71�//C/ 1i6W 11—City Manager Approval: Director of Publi9J*orks (NM) SUBJECT: Public Hearing – Adopt Resolution of the City Council of the City of San Rafael Imposing Traffic Mitigation Fee on Development Projects Citywide in San Rafael Planning Area. RECOMMENDATION: Staff recommends the City Council adopt attached resolution to amend the Traffic Mitigation Fee Ordinance to establish a new citywide fee. BACKGROUND: On September 28, 2004 City Council conducted public hearings and discussed the proposed Circulation Element of the General Plan 2020 and proposed Traffic Mitigation Fees. Staff there presented background information and various alternatives, as follows: The current General Plan 2000, Circulation Element, Policy C-17, and Chapter 3.32 of the San Rafael Municipal Code, established traffic mitigation fees for Northgate, Central San Rafael/Downtown, and East San Rafael areas. These fees are collected for net new PM peak trips generated by each project. The traffic mitigation fees were calculated in three different areas of the City based upon the total cost of improvements for each of the three areas, divided by its corresponding General Plan 2000 PM peak trips. The fees have been adjusted in accordance with the "Lee Saylor Constriction Cost Index" since 1988. The last update occurred in January 2004. The current General Plan 2000 traffic mitigation fee schedules, per PM peak trips are as follows: Northgate $3,370.00 Central San Rafael/Downtown $1,050.00 East San Rafael $3,330.00 FOR CITY CLERK ONLY File No.: / /S I%,0 Z° Council Meeting: q�Qp7�p ftE Q`i1TION NO. 11668 — RESOLUTION IMPOSING TRAFFIC MITIGATION FEE Disposition: 4, D1VeLGP ENT PROJECTS CITYWIDE IN SAN RAFAEL PLANNING AREA ($4,246.00 PER TRIP) (as amended to Include Day Care Faellltles) (Councilmember Phillios absent SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 GENERAL PLAN 2020 MITIGATION FEE A list of proposed projects to address the Level of Service at the intersections and arterials for General Plan 2020 land use impacts, and background traffic increase has been published in the Draft General Plan 2020 (exhibit 19). The proposed roadway improvements listed are estimated to cost $57,950,000 (2004 dollars). Staff has estimated that $38,600,000 will need to be collected via traffic mitigation fees citywide. $15,350,000 could potentially be funded by the Redevelopment Agency, and $4,000,000 is anticipated from State and Federal grants. The City's mitigation fee account balance is currently $9,600,000 of which approximately $2,000,000 has been committed for projects currently under design or construction citywide. Therefore, $7,600,000 is available. The remaining funds anticipated to be collected by mitigation fees is therefore estimated to be $30,900,000. Based on the above information staff recommended the City Council consider the following alternatives and direct staff to prepare a resolution to amend the traffic mitigation fee schedule for consideration at a future City Council meeting. ALTERNATIVE 1 The new traffic mitigation fee would be calculated by dividing $30,900,000 by the total number of PM peak trip ends, which equates to $7,022 per peak hour trip. The mitigation fee would be charged for the highest number of the AM or PM peak trips. Some of the advantages of this alternative are: • One fee would be established citywide. • Traffic impacts will not necessarily be restricted to specific areas of the City. Project trip distribution normally affects many intersections in various parts of the City. • Enables the City to match a larger State and Federal funding with local contributions. • Charging for the highest peak hour trip generation (AM or PM) will better enable the City to collect funds for impacted areas ALTERNATIVE 2 Continue to have three (3) different traffic mitigation fee schedules as per current General Plan 2000. The General Plan 2020 proposed improvement cost estimate breakdown for each of the three areas are as follows: Northgate $17,600,000 Central San Rafael/Downtown $18,150,000 East San Rafael $22,200.000 Total $57,950,000 By subtracting available and uncommitted traffic mitigation funds from each of the three areas proposed project costs, the following are additional traffic mitigation funds required: Northgate $11,500,000 Central San Rafael/Downtown $11,030,000 East San Rafael $ 8,400,000 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 Dividing the additional traffic mitigation funds required to fund the proposed improvements listed in the General Plan 2020 exhibit 19 by the total PM peak trips for Northgate, Central San Rafael/Downtown and East San Rafael, traffic mitigation fee for each area per peak hour trip are as follows: Northgate $6,907 Central San Rafael/Downtown $6,585 East San Rafael $7,887 As specified earlier in this report the mitigation fee would be charged for the highest number of the AM or PM peak trips ALTERNATIVE 3 In general traffic impacts are assessed based upon the project's impact in the AM and PM peak trips. The proposed PSP (Project Selection Process) is also recommending project assessment for both AM and PM peak trips. Some projects have larger AM peak hour trips than PM peak trips and therefore their impact is not fully funded based on payment for PM peak fees only. Using the combination of AM and PM peak trips for the General Plan 2020 and total cost of the proposed projects the following are the traffic mitigation fee schedules per (AM + PM) peak hour trips: City Wide fee (as per Alternative 1) $4,246 Northgate $4,223 Central San Rafael/Downtown $3,920 East San Rafael $4,805 The traffic mitigation fee is collected based on total of the AM and PM peak trips. EXEMPTIONS AND DISCOUNTS Economic Development and attraction of businesses are especially challenging when they are faced with payment of fees. As exists now in the current General Plan 2000 there has been special consideration provided for certain tax generating uses such as retail. A 60% discount for these land uses has been established in Downtown and Northgate area. Staff recommends the following exemptions and discounts to be applied to any of the three alternatives described above. 1. Childcare Facilities (Citywide) 2. Any change of use less than 5000 square feet in existing buildings Downtown; including intensification of use. 3. Housing projects if 50% or more of the units are restricted to be affordable to low and moderate income households. (Citywide). 4. City facilities and works of improvement. 5. Projects that have Disposition and Development or Owner Participation Agreements, or similar instruments, with the San Rafael Redevelopment Agency for cultural and entertainment in Downtown, discount 40% SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pa2e: 4 MITIGATION FEE SUMMARY TABLE PREFERED ALTERNATIVE AND EXEMPTIONS The City Council preferred Alternative 3; citywide fee. The calculated fee based on $4,246 per peak hour trip. The fee calculated by multiplying $4,246 by total new project (AM + PM) peak trips. Any projects generating additional new AM or and PM peak trips are subject to this fee except for: ■ Cultural and theater facilities except night clubs in Downtown ■ Affordable housing (below market rate units) citywide Enclosure (1) Resolution CENTRAL EAST TRIP UNIT NORTHGATE SAN RAFAEL SAN RAFAEL CITYWIDE DOWNTOWN EXISTING PM $3,370 $1,050 $3,330 N/A GP2000 ALTERNATIVE 1 Highest N/A N/A N/A $7,022 AM or PM ALTERNATIVE 2 Highest $6,907 $6,585 $7,887 N/A AM or PM ALTERNATIVE 3 AM + PM $4,223 $3,920 $4,805 $4,246 PREFERED ALTERNATIVE AND EXEMPTIONS The City Council preferred Alternative 3; citywide fee. The calculated fee based on $4,246 per peak hour trip. The fee calculated by multiplying $4,246 by total new project (AM + PM) peak trips. Any projects generating additional new AM or and PM peak trips are subject to this fee except for: ■ Cultural and theater facilities except night clubs in Downtown ■ Affordable housing (below market rate units) citywide Enclosure (1) Resolution RESOLUTION NO. 11668 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL IMPOSING TRAFFIC MITIGATION FEE ON DEVELOPMENT PROJECTS CITYWIDE IN SAN RAFAEL PLANNING AREA. ($4x246,00 PER TRIP) WHEREAS, the City Council of the City of San Rafael has adopted San Rafael Municipal Code Section 3.32 creating and establishing the authority for imposing and charging Public Facilities Fees; and WHEREAS, pursuant to Section 3.32, the City Council of the City of San Rafael adopted Resolution No. 7882 establishing a traffic mitigation fee for certain zones of benefit within the City; and WHEREAS, San Rafael General Plan 2020 identifies the potential impacts of projected future development, the needed facilities and the estimated costs of those improvements, including specifically for these purposes necessary and needed traffic infrastructure improvements and the projected costs thereof, and WHEREAS, the circulation element of the General Plan 2020, and the effectiveness of the existing traffic mitigation fee were discussed at public hearings on September 28, 2004; and WHEREAS, it was determined that the existing traffic mitigation fee is insufficient to fund the proposed traffic infrastructure improvements necessary to support projected future development in the City; and 16 P �� WHEREAS, it was further determined that the current traffic mitigation fee, which said fee is currently only applied to development projects in three defined traffic impacted areas of the City, does not adequately reflect the current traffic and circulation concerns of the City because: (1) the City is experiencing City-wide traffic congestion beyond the three previously defined zones of benefit; (2) the City has traffic infrastructure needs outside of the three defined zones of benefit; and (3) development projects in each area of the City impact traffic throughout the City bychanges in the number of A.M. and P.M. peak hour trips; and WHEREAS, various proposed alternatives and/or amendments to the existing traffic mitigation fee were presented and discussed at the public hearings in order to address these concerns, and the City Council preferred expanding the geographical application of the existing traffic mitigation fee so that it would be assessed Citywide, and further preferred combining all fees collected into one citywide traffic mitigation fee account; and WHEREAS, the City Council further determined that the traffic mitigation fee should be increased to $4,246.00 per trip, and that the fee shall be assessed by multiplying the per trip fee by the total number of new AM plus PM peak trips generated by a project; and WHEREAS, the estimated number of trips generated per development project shall be approved by the City Traffic Engineer and traffic mitigation fee shall be assessed and paid at the time of the issuance of the building permit for development; and WHEREAS, the traffic mitigation fee will be adjusted annually based on "Lee Saylor Construction Cost Index"; and WHEREAS, the City Council has determined that: 1) cultural and theater facilities, excluding night clubs in Downtown, 2) childcare facilities, and 3) affordable housing projects shall be exempt from traffic mitigation fees; and WHEREAS, the traffic mitigation fee adopted herein shall not be assessed on any development project for which land -use entitlements have been granted and remain valid, pursuant to Title 14 of the San Rafael Municipal Code (Zoning Ordinance), as of the effective date of this resolution. For those projects, the traffic mitigation fee in place prior to the effective date of this resolution shall be assessed and collected. A "valid" land -use entitlement shall be one for which project approval has been granted by the decision-making authority, no appeals have been filed within the appeal period specified within the Zoning Ordinance, and the approval granted by the decision-making authority has not lapsed; and WHEREAS, the traffic mitigation fee adopted hereby shall not be assessed on or collected for any project subject to a Development Agreement approved prior to the effective date of this resolution, except in those instances where the Development Agreement specifically authorizes the City to collect fees and charges adopted by the City subsequent to the date of approval of the Development Agreement. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael hereby finds and determines that the above Recitals are true and correct and serve as the basis, in part, for the actions of the City Council set forth below; and BE IT FURTHER RESOLVED that the City Council of the City of San Rafael does hereby adopt this Resolution establishing a new Citywide traffic mitigation fee pursuant to San Rafael Municipal Code Section 3.32; I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City on the 15th day of November, 2004, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Phillips JEkC--;E LEONCINI, City Clerk SAN RAFAEL CITY COUNCIL ROUTING SLIP INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF ORIGINAL CONTRACT, AGREEMENT, ORDINANCE, OR RESOLUTION BEFORE APPROVAL BY COUNCIL/AGENCY. FROM: Andrew J. Preston DATE: November 9, 2004 SRCC AGENDA ITEM NO. ( D DATE OF MEETING: Nov. 15, 2004 ORIGINATING DEPARTMENT: Department of Public Works TITLE OF DOCUMENT: Report to Mayor and City Council and Resolution adopting Resolution Imposing Traffic Mitigation Fee on Development Projects Citywide in San Rafael Planning Area. RECEIVE® NOV 0 9 2004 DEPARTMENT HE� (Signature) CITY ATTORNEY (LOWER HALF OF FORM FOR APPROVALS ONLY) REVIEWED BY CITY MANAGER APPROVED AS COUNCIL AGENDA ITEM NOT APPROVED REMARKS: TO: re)