HomeMy WebLinkAboutPW Traffic Mitigation Fee Report 2019____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 04/15/2019
Disposition: Resolution 14659
Agenda Item No: 4.g
Meeting Date: April 15, 2019
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Bill Guerin,
Director of Public Works
City Manager Approval: ______________
TOPIC: ANNUAL TRAFFIC MITIGATION FEE REPORT
SUBJECT: RESOLUTION 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: Accept the Traffic Mitigation Fee Report and adopt a resolution making a
finding 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.
BACKGROUND: Traffic mitigation fees are a type of development impact or public facility fee.
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 fe e charged and the cost
of the improvements for which they are collected, must be deposited in a separate account,
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
segregated from the City’s general fund, and used only for the identified improvements. AB
1600 requires cities to spend or commit the fees wi thin 5 years of collection, or return them to
the developer unless a finding can be 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.
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, and 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, but are not necessary to maintain Level of
Service (LOS) standards. Specific improvements will be implemented as conditions
require, and will be refined during the design phase. Recognize that other feasible
design solutions may become available and be more effective in achieving the same
goals as the improvements listed in Exhibit”. The Plan lists 32 long-term roadway
improvement projects, 24 of which are identified to be partially funded with Traffic
Mitigation fees and as noted above, also allows other additional improvements, not in
the General plan 2020 (such as improvements in the City’s approved list of Capital
Improvement Projects), to be made.
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
trips generated.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
3. Account beginning and ending balance, fees collected and interest accrued:
Fund balance July 1, 2017 $7,478,592.93
Revenue (17/18)
• Interest income
• Traffic Mitigation Fees
• Gas Tax Transfer to Downtown Rail Readiness
(project #11237)
$45,408
$701,951
$148,788
Total Revenue $896,147
Expenditures (17/18)
• Capital Projects
Freitas Las Gallinas Intersection #11171
Third & Hetherton Study #11303
Second & Third Street Queue Cutters Study #11335
Grand Avenue Pathway Connector #11173
Andersen Drive Rail Crossing Improvements #11276
$2,881,908
$32,811
$59,950
$223,650
$487,571
Total Expenditures $3,685,890
Net Change Fund Balance ($892,147-$3,685,890) $(2,789,743)
Fund Balance June 30, 2018 $4,688,850
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 a re
the projects for which Traffic Mitigation Fees were used during the 2018-2019 fiscal
year:
a. Manuel T. Freitas Parkway/Las Gallinas Avenue Intersection Improvements
(#11171) – the project broke ground in FY 2016-17, but the lion share of
construction took place in FY 2017-18. The project upgraded traffic signal system
and operations and improve pedestrian safety and intersection geometry. The
project was fully completed in early 2018, and the formal notice of completion
was brought to City Council on August 20, 2018. The total cost for this project
was $3,526,791, of which $3,257,900 came from the Traffic Mitigation Fund.
b. Third & Hetherton Intersection Study (#11303) – the City contracted with Kimley-
Horn to study conceptual plans and define a project scope that will balance
safety and capacity at this intersection. The total study cost was $94,035, all of
which came from the Traffic Mitigation Fund. Final recommendations from the
Third and Hetherton Intersection study were brought to City Council on
December 17, 2018. Design and part of construction of the improvements is
being funded through a $583,000 Highway Safety Improvement Program (HSIP)
grant from Caltrans.
c. Second & Third Street Queue Cutters (#11335) – In preparation for the extension
of SMART extension to Larkspur, which includes rail line crossing Second and
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
Third Streets, the City needs to install queue cutters to prevent vehicles from
stopping on the tracks. Design was started in FY 2017-18, and construction was
awarded by City Council on December 3, 2018. The total cost of this project is
anticipated to be $380,000, all of which will come from the Traffic Mitigation Fund
d. Grand Avenue Pathway Connector (#11173) – The project consists of installing a
bicycle/pedestrian bridge just east of the existing Grand Avenue vehicle bridge
which cross the San Rafael Canal. The structure will improve access to
Francisco Blvd. East and provide a vital connection between the downtown and
east San Rafael. Traffic Mitigation funds were used in the Right of Way purchase
for the bridge project, as approved by City Council on February 20, 2018. The
total cost of this project is $3,504,000, of which $301,925 has been approved for
use from the Traffic Mitigation Fund
e. Andersen Drive (#11276) – The project involves the reconfiguring of Andersen
Drive, including the installation of signal systems and related improvements to
allow an at grade rail crossing of Andersen Drive with SMART’s extension to
Larkspur. The MOU with SMART to construct the Andersen crossing
improvements was approved by City Council on March 20, 2017 which
authorized a total amount of $5,070,000 which included construction,
Contingency plus SMART’s Staff time. The initial design for this crossing was
supported by redevelopment funds and the construction being supported by from
the Traffic Mitigation Fund. While the majority of the construction is completed,
additional property transfers and incidental work remain at this time.
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:
There was a transfer of funds in from the Gas Tax in the amount of $148,788 for the
Downtown Rail Readiness project #11237.
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 $2,193,570 has been held for more
than 5 years, as shown in the following table:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
Traffic Mitigation Fund #246
Revenues only:
0-1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5+ Years
Unspent &
received in
FY 17-18
Unspent &
received in
FY 16-17
Unspent &
received in
FY 15-14
Unspent &
received in
FY 14-13
Unspent &
received in
FY 13-12
Unspent &
received 1/1/89
to 6/30/12
$896,147 $382,554 $386,840 $660,888 $168,851 $2,193,570
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 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 specific projects. The City anticipates the following projects will continue to
incur Traffic Mitigation Funds expenses:
• Third & Hetherton Intersection Study
• Andersen Drive
• Second & Third Street Queue Cutters
• Francisco Blvd Multi Use Path (partial funding resulting from transfer of funds from
Grand Avenue Bridge project)
While these are the projects currently under construction, it is worth noting that the total cost of
the 24 Circulation Element improvements in the General Plan 2020 is estimated at $57.95
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’s recommendation), a positive fund balance shall be available for the beginning
of FY 2018-19.
OPTIONS:
• Accept the report and adopt the resolution as recommended.
• Accept the report with modifications and adopt the Resolution with amended findings .
• Do not accept the report and do not adopt the resolution.
RECOMMENDED ACTION: Accept the Traffic Mitigation Fee Report and adopt a resolution
making a finding 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. 14659
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ACCEPTING THE ANNUAL TRAFFIC MITIGATION FEE REPORT AND
DETERMINING 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
(“CIP”) 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 Exhibit 21 of General Plan 2020 and the CIP that are
needed to accommodate the development; and
WHEREAS, General Plan 2020 recognizes and allows 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, but are not necessary to maintain LOS standards ; and
WHEREAS, General Plan 2020 allows for specific improvements to
be implemented as conditions require, and will be refined during the design
phase, and
WHEREAS, the Plan also recognizes that other feasible design
solutions may become available and be more effective in achieving the same
goals as the improvements listed in Exhibit 21, and
WHEREAS, the City’s Traffic Mitigation Fee fund contains some
funds that have been held for over five years; and
WHEREAS, the City expended $3,685,890 on Traffic Mitigation
funded capital projects in FY 2017-18 and anticipates expending all remaining
$2,193,570 in traffic mitigation funds held over five years in support of the
construction of the Andersen Drive intersection project and other capital projects
in FY 2018-19, 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 and the CIP 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, LINDSAY LARA, 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 City Council of said City held on the Monday, the 15th day
of April 2019 by the following vote, to wit:
AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmembers: None
LINDSAY LARA, City Clerk
Amended and reprinted 01/18/13
Exhibit 21
Major Planned Circulation Improvements a
Funding Source
Proposed Roadway Improvements Projected Cost Mitigation Fee Redevelopment State & Federal Projected Project Timing (b)
1 Smith Ranch Road/Lucas Valley Road
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.
$4,000,000 $4,000,000 Depends On Development Timing
2 Lucas Valley/Los Gamos
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.
$2,000,000 $2,000,000 Depends On Development Timing
3 Las Gallinas Avenue (Merrydale to Del
Presidio)
Remove parking and widen street to provide four
lanes (one southbound, two northbound and one
two-way left turn).
$300,000 $300,000 Depends On Development Timing
4 Freitas/Las Gallinas
Upgrade the traffic signal system and operation.
Improve intersection geometry, cover portions of
drainage ditch
$650,000 $650,000 5-7 years
5 Freitas/Del Presidio
Explore feasibility of double northbound right turn
and southbound 101 on ramp widening
$900,000 $900,000 Depends On Development Timing
6 Freitas/ Northbound 101 Ramps- Redwood-
Civic Center widening and signalization.
Right of Way Required.
$7,500,000 $7,500,000 Depends On Development Timing
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
upgrade traffic signal system. Requires right of way
and major bridge widening.
$6,500,000 $3,250,000 $3,250,000 Depends On Development Timing
Signalize Grand/ Fifth, and restrict parking to
provide turn lanes.
$200,000 $200,000 5-7 years
Signalize Grand/ Mission, and restrict parking to
provide turn lanes.
$200,000 $200,000 5-7 years
8 Francisco Blvd. East (Bellam to Grand Avenue
Bridge)
Four lanes required. One southbound, one two-way
left turn and two northbound lanes. Major right of
way required.
$10,000,000 $5,000,000 $5,000,000 Depends On Development Timing
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-
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.
$400,000 $400,000 3-5 years
Signalize Lincoln/ Grand, and restrict parking to
provide turn lanes.
$200,000 $200,000 3-5 years
10 Mission/Lincoln
Provide additional lanes for northbound, and
westbound; upgrade traffic signal system, requires
right of way.
$4,000,000 $4,000,000 Depends On Development Timing
11 Fourth Street (Miracle Mile)
Re-align Ross Valley and Santa Margarita and re-
design intersection operation. LOS may deteriorate
but community access will be provided.
$450,000 $450,000 5-7years
Additional Signalization
12 Signalize Fifth & H Street, and restrict parking to
provide turn lanes.
$100,000 $100,000 3 years
Amended and reprinted 01/18/13
Funding Source
Proposed Roadway Improvements Projected Cost Mitigation Fee Redevelopment State & Federal Projected Project Timing (b)
13 Signalize First/C Street, and restrict parking to
provide turn lanes.
$150,000 $150,000 3 years
14 Signalize First/ D Street, and restrict parking to
provide turn lanes.
$150,000 $150,000 3 years
15 Signalize Fourth/Union Street, and restrict parking
to provide turn lanes.
$200,000 $200,000 Depends On Development Timing
16 Signalize or Roundabout Mission/Court Street.$200,000 $100,000 $100,000 Depends On Development Timing
17 Signalize Merrydale/Southbound 101 Ramps, and
provide turn lanes.
$250,000 $250,000 5-7years
18 Signalize Lincoln/DuBois/Irwin and re-align
intersection. Right of way required.
$2,500,000 $2,500,000 Depends On Development Timing
19 Third/Union Street
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.
$900,000 $900,000 2 years
20 Kerner Blvd or Francisco Blvd. East. To
Andersen Drive Undercrossing
Provide a minimum 3-lane connector near
Shoreline Parkway. Signalize at both ends.
$8,000,000 $4,000,000 $4,000,000 Depends On Development Timing
21 Andersen /East Sir Francis Drake-eastbound
580 Ramps
Major widening and signalization.
$2,000,000 $500,000 $500,000 $1,000,000 5-7 years
22 Upgrade traffic signal system.$3,000,000 $1,500,000 $1,500,000 7 years
23 Install traffic monitoring sensors and camera
system.
$1,000,000 $500,000 $500,000 7 years
24 Install Fiber Optic network throughout the
traffic system.
$2,000,000 $1,000,000 $1,000,000 7 years
Sub Total $57,950,000 $38,600,000 $15,350,000 $4,000,000
Amended and reprinted 01/18/13
Funding Source
Proposed Roadway Improvements Projected Cost Mitigation Fee Redevelopment State & Federal Projected Project Timing (b)
Other Projects Projected Cost City Funds Redevelopment State & Federal
25 Implement Bicycle and Pedestrian Master Plan $5,300,000 $2,650,000 $2,650,000 7-20 years
26 Pedestrian bridge at Third/Hetherton – GGT
Transportation Center
$2,000,000 $500,000 $500,000 $1,000,000 Depends On SMART, 10-20 years
27 Pedestrian bridge to connect Canal to Andersen
Drive/Downtown.
$4,500,000 $1,125,000 $1,125,000 $2,250,000 10-20 years
28 Pedestrian bridge to connect Canal to Montecito
Shopping Center.
$4,000,000 $1,000,000 $1,000,000 $2,000,000 10-20 years
29 Freitas / Northbound 101 Ramps - Redwood-Civic
Center or a new flyover from Civic Center Dr. to
Freitas.
$12,000,000 $6,000,000 $6,000,000 Depends On Development Timing
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.
$6,000,000 $1,500,000 $3,000,000 $1,500,000 10-20 years
31 Pedestrian bridge over Canal between the Canal
and Montecito/Happy Valley neighborhoods.
$4,000,000 $1,000,000 $2,000,000 $1,000,000 10-20 years
32 North San Rafael Promenade $2,000,000 $1,000,000 $1,000,000 10-20 years
Sub Total Other Projects $39,800,000 $14,775,000 $7,625,000 $17,400,000
Grand Total Project Cost $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