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HomeMy WebLinkAboutPW Traffic Mitigation Fee Report 2017f SAN RAFAEL THE CITY WITH A MISSION Agenda Item No: .q Meeting Date: January 17, 2017 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Public Works Prepared by: Bill Guerin, City Manager Approval: Director of Public Works TOPIC: ANNUAL TRAFFIC MITIGATION FEE REPORT File No.: 01.26.01 SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ACCEPTING THE ANNUAL TRAFFIC MITIGATION FEE REPORT AND APPROVING THE DETERMINATION THAT A REASONABLE RELATIONSHIP EXISTS BETWEEN THE CURRENT NEED FOR TRAFFIC MITIGATION FEES HELD OVER FIVE YEARS AND THE PURPOSES FOR WHICH THEY WERE ORIGINALLY COLLECTED. RECOMMENDATION: Adopt resolution accepting annual traffic mitigation fee report. BACKGROUND: Traffic Mitigation fees are a type of development impact or public facility fees. They are charged by a local governmental agency to an applicant in connection with the approval of a development project. They are not a tax or special assessment. Rather, their purpose is to offset the cost of public facilities made necessary by the development project. In the case of Traffic Mitigation Fees, the fees are collected to provide funds for increasing street capacity to accommodate additional traffic generated by new development. Assembly Bill 1600 (California Government Codes §66000 — 66025) established requirements for how cities collect, maintain and spend impact fees. The focus of this report is on the impact fee portion of the law. The City's Traffic Mitigation Fees were enacted in 1988 in connection with General Plan 2000 and that document's projections for growth and future traffic patterns in the City. The Circulation Element of General Plan 2020 calls for continued implementation and periodic updating of Traffic Mitigation Fees in order to fund the long list of traffic improvements mentioned in the General Plan as well as other circulation needs that may arise as the City is developed. (General Plan 2020, Programs C-6, C-7) Impact fees must demonstrate a reasonable connection between the fee charged and the cost of the improvements for which they are collected, must be deposited in a separate account, segregated from the city's general fund, and used only for the identified improvements. AB 1600 requires cities to spend or commit the fees within 5 years of collection, or return them to the developer unless a finding can be FOR CITY CLERK ONLY File No.: 9-10-20) x 9-3-40 Council Meeting: 01/17/2017 Disposition: Resolution 14261 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 2 made that a reasonable relationship continues to exist between the current need for the fee and the purpose for which it was originally collected (Gov. Code §66001(d)). Of the City's various development fees, the Traffic Mitigation Fee is the only such fee subject to AB 1600 reporting. Pursuant to Government Code Section §66006, cities must publish annual reports on these fees, which are to be available to the public within 6 months of the end of a fiscal year. In addition, the city must review the report at a public meeting not less than 15 days after the information is made available. ANALYSIS: The Traffic Mitigation Fee report consists of the following seven elements: 1. Fee description: The Traffic Mitigation Fee is charged to new development projects. It is intended to pay for those circulation system improvements identified in General Plan 2020 needed to accommodate the proposed development or, as stated in section C-6 of General Plan 2020, for "Other recommended roadway improvements, including additional improvements that may become necessary in the long term and are desirable to enhance San Rafael's circulation system..." The Plan lists 32 long-term roadway improvement projects, 24 of which are identified to be partially funded with Traffic Mitigation fees. 2. Amount of the fee: Each new A.M. and P.M. peak hour trip generated by a development is charged $4,246. Fees are calculated based on land use types and their estimated trip rates. 3. Account beginning and ending balance, fees collected and interest accrued: Fund balance July 1, 2015 $10,628,632 Revenue • Interest income $50,734 • Model run charges $0 • Traffic Mitigation Fees $336,106 Total Revenue $386,840 Expenditures • Model Updates $0 • Capital Projects $2,174,278 Total Expenditures $2,174,278 Net Change Fund Balance -$1,787,438 Fund Balance June 30, 2016 $8,841,194 4. List of improvements on which fees were expended, amount of expenditure and total percentage of cost covered by fee: A list of all major planned circulation improvements identified in the General Plan is provided in Attachment 2 of this report. Following are three examples of projects for which Traffic Mitigation Fees are currently being used or planned for use, 2 of which are active and one long term: a. Freitas/Las Gallinas Intersection Improvements — the project will upgrade traffic signal system and operations, improve pedestrian safety and intersection geometry. The bid opening is set for January 2017. Construction is tentatively scheduled for summer 2017. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 The project will utilize approximately $2.7 million of the $5.22 Traffic Mitigation Fund balance held 5+ years. b. Tamalpais Ave. Queue Cutter Improvements — the project will reduce the possibility of traffic backing up on to the SMART rail line at Mission Avenue, Fifth Avenue and Fourth Street. Queue Cutter traffic signals will be constructed at each of the three crossings. The project will utilize $1.864 million of the $7.359 Traffic Mitigation Fund balance held 5+ years. Although not specifically identified in the General Plan, this project falls under the general category of signal improvements. c. Mission Ave./Lincoln Ave. — this is a long-term project which will provide additional northbound and westbound lanes and will upgrade the traffic signal system. Right-of-way acquisition will be required. The projected cost is $4 million, all of which will come from the Traffic Mitigation Fund. 5. Approximate date by which construction will commence when City has determined that sufficient funds have been collected: See No. 4 above. Projects identified in General Plan 2020 are major infrastructure improvements which often require substantial state and federal funding in addition to Traffic Mitigation resources. Scheduling of those projects therefore depends upon the availability of these supplemental funds. 6. Any interfund loan or transfer, including the public improvement where it will be spent: No interfund transfers were made. 7. Refunds made due to sufficient funds being collected: No refunds were made. An analysis of the accumulated fund balance follows. A first in, first out (FIFO) accounting method assumes the first revenue collected is the first spent. Staff analyzed the annual balances for the past 5 fiscal years and determined that $5,252,485 has been held for more than 5 years, as shown in the following table: Traffic Mitigation Fund #246 0-1 Year 1-2 Years 2-3 Years Unspent & Unspent & Unspent & received in received in received in FY 15-16 FY 14-15 FY 13-14 $386,840 $660,888 $168,851 3-4 Years 4-5 Years Unspent & Unspent & received in received in FY 12-13 FY 11-12 $2,337,703 $34,427 5+ Years Unspent & Balance as received 1/1/89 of 6/30/16 to 6/30/11 $5,252,485 $8,841,194 A finding must be made that a reasonable relationship exists between the current need for the fees and the purposes for which they were originally charged. As evidenced by the Freitas/Las Gallinas Intersection Improvements, Queue Cutter, and Mission Avenue/Lincoln Avenue projects described above, current traffic improvement projects underscore the connection between the current need for the fees and the purpose for which they were originally collected. The funds currently held by the City for more than 5 years are already planned for use in SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 specific projects. Further, overall, the total cost of the 24 Circulation Element improvements is estimated at $58 million, of which $38.6 million (67%) would come from traffic mitigation fees. FISCAL IMPACT: If the City Council makes a finding that a reasonable relationship continues to exist (staff recommendation), the fund balance remains $8,841,194. If the City Council does not find that a reasonable relationship exists, $5,252,485 will be returned and the fund balance will be $3,588,709 ($8,841,194 - $5,252,485 = $3,588,709). OPTIONS: Accept the report and adopt the Resolution as recommended; Accept the report with modifications and adopt the Resolution with amended findings; or Reject the report and do not adopt the Resolution. RECOMMENDED ACTIONS: Accept the Traffic Mitigation Fee Report and adopt the resolution making a Ending that a reasonable relationship continues to exist between the current need for Traffic Mitigation Fees held over 5 years and the purposes for which they were originally charged. ATTACHMENTS: 1. Resolution 2. Exhibit 21 from General Plan 2020: "Major Planned Circulation Improvements" RESOLUTION NO. 14261 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ACCEPTING THE ANNUAL TRAFFIC MITIGATION FEE REPORT AND APPROVING THE DETERMINATION THAT A REASONABLE RELATIONSHIP EXISTS BETWEEN THE CURRENT NEED FOR TRAFFIC MITIGATION FEES HELD OVER FIVE YEARS AND THE PURPOSES FOR WHICH THEY WERE ORIGINALLY COLLECTED WHEREAS, the City's Circulation Element of General Plan 2020 identifies improvements necessitated by continued development in the City; and WHEREAS, the City has adopted a Capital Improvement program that has been developed to prioritize and guide the construction of the needed improvements and which allocates funds to construct the improvements as mitigation for continued development; and WHEREAS, these improvements are scheduled to be constructed over time as sufficient funds become available; and WHEREAS, the City imposes a Traffic Mitigation Fee on new development projects for the purpose of paying for those circulation system improvements identified in General Plan 2020 needed to accommodate the development; and WHEREAS, the City's Traffic Mitigation Fee fund contains some funds that have been held for over five years; and WHEREAS, City staff has presented to the City Council an annual report on the Traffic Mitigation Fees as required by Government Code Section §66006; and WHEREAS, the circulation system improvements identified in General Plan 2020 are of such size that insufficient funds have been collected or obtained to construct these improvements within the five year expenditure period provided by Government Code Section §66001(d); and WHEREAS, the Traffic Mitigation Fees that have been held for over five years are currently planned for specific pending or upcoming projects; and WHEREAS, there continues to be a distinct nexus between continued development and the necessity to mitigate development impacts on traffic circulation. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby accepts the annual report on Traffic Mitigation Fees, and finds that a reasonable relationship exists between the current need for the Traffic Mitigation Fees held over five years and the purposes for which they were originally charged. I, ESTHER C. BEIRNE, 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 Tuesday, the 17th of January, 2017 by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 4. f&j.-A c � rem ESTHER C. BEIRNE, City Clerk Exhibit 21 Major Planned Circulation Improvements a Amended and reprinted 01/18/13 Funding Source Proposed Roadway Improvements Projected Cost Mitigation Fee Redevelopment State & Federal Projected Project Timing (b) 1 Smith Ranch Road/Lucas Valley Road $4,000,000 $4,000,000 Depends On Development Timing Widen roadway to provide two westbound and two eastbound lanes between Redwood Highway and Los Gamos. Widen northbound 101 off ramp and southbound 101 off ramp for additional right and left turn lanes. 2 Lucas Valley/Los Gamos $2,000,000 $2,000,000 Depends On Development Timing Widen Lucas Valley Road to provide two through lanes for eastbound and westbound, and provide two westbound left turn lanes. Widen southbound Los Gamos to provide 2 lanes for 300 feet and merge back to one lane. Signalize intersection and coordinate with adjacent intersections. 3 Las Gallinas Avenue (Merrydale to Del $300,000 $300,000 Depends On Development Timing Presidio) Remove parking and widen street to provide four lanes (one southbound, two northbound and one two-way left turn). 4 Freitas/Las Gallinas $650,000 $650,000 5-7 years Upgrade the traffic signal system and operation. Improve intersection geometry, cover portions of drainage ditch 5 Freitas/Del Presidio $900,000 $900,000 Depends On Development Timing Explore feasibility of double northbound right turn and southbound 101 on ramp widening 6 Freitas/ Northbound 101 Ramps- Redwood- $7,500,000 $7,500,000 Depends On Development Timing Civic Center widening and signalization. Right of Way Required. Amended and reprinted 01/18/13 Amended and reprinted 01/18/13 Funding Source Proposed Roadway Improvements Projected Cost Mitigation Fee Redevelopment State & Federal Projected Project Timing (b) 7 Grand Avenue (south of Grand Avenue bridge to Fourth Street) Widen north/south, add one lane as required, and $6,500,000 $3,250,000 $3,250,000 Depends On Development Timing upgrade traffic signal system. Requires right of way and major bridge widening. Signalize Grand/ Fifth, and restrict parking to $200,000 $200,000 5-7 years provide turn lanes. Signalize Grand/ Mission, and restrict parking to $200,000 $200,000 5-7 years provide turn lanes. 8 Francisco Blvd. East (Bellam to Grand Avenue Bridge) Four lanes required. One southbound, one two-way $10,000,000 $5,000,000 $5,000,000 Depends On Development Timing left turn and two northbound lanes. Major right of way required. Signalize Francisco Blvd. East/Harbor. $200,000 $200,000 5-7 years 9 Lincoln Avenue (Second Street to southbound 101 ramps - Hammondale or as required) Extend the existing PM peak northbound Tow- $400,000 $400,000 3-5 years Away zone for AM peak as well (four lanes may be required). This parking restriction is likely to be extended north toward the southbound 101 ramps. Signalize Lincoln/ Grand, and restrict parking to $200,000 $200,000 3-5 years provide turn lanes. 10 Mission/Lincoln $4,000,000 $4,000,000 Depends On Development Timing Provide additional lanes for northbound, and westbound; upgrade traffic signal system, requires right of way. 11 Fourth Street (Miracle Mile) $450,000 $450,000 5-7years Re -align Ross Valley and Santa Margarita and re- design intersection operation. LOS may deteriorate but community access will be provided. Additional Signalization 12 Signalize Fifth & H Street, and restrict parking to $100,000 $100,000 3 years provide turn lanes. Amended and reprinted 01/18/13 Amended and reprinted 01/18/13 $4,000,000 $4,000,000 $500,000 $1,500,000 $500,000 $1,000,000 $38,600,000 $500,000 $15,350,000 Projected Project Timing (b) 3 years 3 years Depends On Development Timing Depends On Development Timing 5-7years Depends On Development Timing 2 years Depends On Development Timing $1,000,000 5-7 years $1,500,000 $500,000 $1,000,000 $4,000,000 7 years 7 years 7 years Widen Union Street to provide 4 lanes between Funding Source Proposed Roadway Improvements Projected Cost Mitigation Fee Redevelopment State & Federal 13 Signalize First/C Street, and restrict parking to $150,000 $150,000 provide turn lanes. Upgrade the traffic signal system and operation. 14 Signalize First/ D Street, and restrict parking to $150,000 $150,000 Andersen Drive Undercrossing provide turn lanes. Provide a minimum 3 -lane connector near 15 Signalize Fourth/Union Street, and restrict parking $200,000 $200,000 Andersen /East Sir Francis Drake -eastbound $2,000,000 to provide turn lanes. 580 Ramps 16 Signalize or Roundabout Mission/Court Street. $200,000 $100,000 $100,000 17 Signalize Merrydale/Southbound 101 Ramps, and $250,000 $250,000 system. provide turn lanes. Install Fiber Optic network throughout the $2,000,000 18 Signalize Lincoln/DuBois/Irwin and re -align $2,500,000 Sub Total $2,500,000 intersection. Right of way required. 19 Third/Union Street $900,000 $900,000 Amended and reprinted 01/18/13 $4,000,000 $4,000,000 $500,000 $1,500,000 $500,000 $1,000,000 $38,600,000 $500,000 $15,350,000 Projected Project Timing (b) 3 years 3 years Depends On Development Timing Depends On Development Timing 5-7years Depends On Development Timing 2 years Depends On Development Timing $1,000,000 5-7 years $1,500,000 $500,000 $1,000,000 $4,000,000 7 years 7 years 7 years Widen Union Street to provide 4 lanes between Third and Fourth. Fire Station 4 modification required. Reconfigure Third/Union eastbound left turn pocket. Provide westbound right turn pocket. Upgrade the traffic signal system and operation. 20 Kerner Blvd or Francisco Blvd. East. To $8,000,000 Andersen Drive Undercrossing Provide a minimum 3 -lane connector near Shoreline Parkway. Signalize at both ends. 21 Andersen /East Sir Francis Drake -eastbound $2,000,000 580 Ramps Major widening and signalization. 22 Upgrade traffic signal system. $3,000,000 23 Install traffic monitoring sensors and camera $1,000,000 system. 24 Install Fiber Optic network throughout the $2,000,000 traffic system. Sub Total $57,950,000 Amended and reprinted 01/18/13 $4,000,000 $4,000,000 $500,000 $1,500,000 $500,000 $1,000,000 $38,600,000 $500,000 $15,350,000 Projected Project Timing (b) 3 years 3 years Depends On Development Timing Depends On Development Timing 5-7years Depends On Development Timing 2 years Depends On Development Timing $1,000,000 5-7 years $1,500,000 $500,000 $1,000,000 $4,000,000 7 years 7 years 7 years Proposed Roadway Improvements Other Projects 25 Implement Bicycle and Pedestrian Master Plan 26 Pedestrian bridge at Third/Hetherton — GGT Transportation Center 27 Pedestrian bridge to connect Canal to Andersen Drive/Downtown. 28 Pedestrian bridge to connect Canal to Montecito Shopping Center. 29 Freitas / Northbound 101 Ramps - Redwood -Civic Center or a new flyover from Civic Center Dr. to Freitas. 30 Second Street (from E Street to east side of A Street). The projected volume requires right turn lanes or through/right lanes be added in the long term. Right of way required. 31 Pedestrian bridge over Canal between the Canal and Montecito/Happy Valley neighborhoods. 32 North San Rafael Promenade Sub Total Other Projects Grand Total Project Cost Funding Source Projected Cost Mitigation Fee Redevelopment State & Federal Projected Project Timing (b) Projected Cost City Funds Redevelopment State & Federal $5,300,000 $2,650,000 $2,650,000 7-20 years $2,000,000 $500,000 $500,000 $1,000,000 Depends On SMART, 10-20 years $4,500,000 $1,125,000 $1,125,000 $2,250,000 10-20 years $4,000,000 $1,000,000 $1,000,000 $2,000,000 10-20 years $12,000,000 $6,000,000 $6,000,000 Depends On Development Timing $6,000,000 $1,500,000 $3,000,000 $1,500,000 10-20 years $4,000,000 $1,000,000 $2,000,000 $1,000,000 10-20 years $2,000,000 $1,000,000 $1,000,000 10-20 years $39,800,000 $14,775,000 $7,625,000 $17,400,000 $97,750,000 (a) Priorities for circulation improvements are set in the Capital Improvements Program. This list may be amended as part of the five-year General Plan update. (b) The timing for the improvements depends on the size, type and phasing of additional development. Policies LU -2 (Development Timing) requires findings when project - related traffic will not cause the LOS to be exceeded. Source: San Rafael Public Works Department Amended and reprinted 01/18/13 ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval by the City Council. Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) --> CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # Date of Meeting: 1/17/2017 From: Bill Guerin Department: Public Works Date: 12/21/2016 Topic: ANNUAL TRAFFIC MITIGATION FEE REPORT Subject: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ACCEPTING THE ANNUAL TRAFFIC MITIGATION FEE REPORT AND APPROVING THE DETERMINATION THAT A REASONABLE RELATIONSHIP EXISTS BETWEEN THE CURRENT NEED FOR TRAFFIC MITIGATION FEES HELD OVER FIVE YEARS AND THE PURPOSES FOR WHICH THEY WERE ORIGINALLY COLLECTED Type: ® Resolution ❑ Ordinance ❑ Professional Services Agreement ❑ Other: Staff Report APPROVALS ® Finance Director Remarks: approved - MM - 12/30/16 ® City Attorney Remarks: LG -Approved 1/9/17 ® Author, review and accept City Attorney / Finance changes Remarks: KM - Approved 1-10-17 ® City Manager