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Home My WebLink About7.2 Tri-Valley Trans Dev Fee~~ ~- CITY CLERK File # ^~~~-~~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: September 2, 2008 SUBJECT: ATTACHMENT: RECOMMENDATION: FINANCIAL STATEMENT: Tri-Valley Transportation Development Fee (TVTDF) Update Report Prepared by: Jaimee Bourgeois, Traffic Engineer Resolution Adopt the Resolution approving the updated Tri-Valley Transportation Development Fee structure. There is no cost associated with this item. If the revised fee structure is unanimously approved by each Tri-Valley Transportation Council member and subsequently by each member jurisdiction's Council or Board, then the City of Dublin will likely receive additional development revenues that will be allocated toward high-priority transportation projects. DESCRIPTION: In 1998 and 1999, the Tri-Valley Transportation Council (TVTC) established aTri-Valley Transportation Development Fee (TVTDF), and adopted a Strategic Expenditure Plan that programmed anticipated TVTDF revenue to 11 regional transportation projects that were identified in the Tri-Valley Transportation Action Plan. In 2004, the TVTC directed Staff to begin the process of updating the fee nexus study. A second list of 11 new projects was included in the updated study. On January 30, 2008, the TVTC approved the updated Tri-Valley Nexus Study Report that identified the maximum allowable development fees that could be applied to development to fully fund the two lists of transportation improvement projects. Table 1 on the following page presents the maximum allowable fees for each land use category in comparison to the current fees. COPY TO: Page 1 of 4 ITEM NO. / G:\TRANSPORTATION\Regional\TVTC\agst_TVTDF_Update_Approval. doc TABLE 1 EXISTING FEES VERSUS APPROVED MAXIMUM ALLOWABLE FEES Land Use Category Unit df Measure Existing Fee 2008-2009 .Maximum Allowable Fee Sin le-Famil Residential dwellin units $2,036 $12,238 Multi-Famil Residential dwellin units $1,295 $8,430 Office 1,000 s uare feet oss floor area $3,653 $20,800 Retail 1,000 s uare feet oss floor area $1,365 $22,710 Industrial 1,000 s uare feet oss floor area $2,469 $12,100 Other Avera e AM/PM eak hour tri $815 $13,598 At its June 30th meeting, the TVTC developed the following guidelines: • Charge no more than 35% of the maximum allowable • Phase the new fees in over atwo-year period • Cap the retail fee at 15% of the maximum allowable • Affordable housing projects meeting specific criteria (publicly-funded, privately-funded non- profit, and privately-funded for profit) would be exempt from paying fees • Transit-oriented development would be charged the multi-family residential rate Based on this specific set of guidelines, the fee structure can be summarized as presented in Table 2. This fee structure would generate an estimated $391 million between 2009 and 2030. TABLE 2 PROPOSED FEE STRUCTURE Land Use Cate o g ~ Year 2009-201.0 Current Fee Year 2010-2011 25°!0 Max2 Years 2011-2030 35% Max2. SFR er dwellin unit) $2,036 $3,053 $4,275 AH $0 $0 $0 MFR er dwellin unit) $1,295 $2,104 $2,945 Office er 1,000 s . ft. $3,653 $5,191 $7,267 Retail er 1,000 s . ft. $1,365 $3,400 $3,400 Industrial er 1,000 s . ft. $2,469 $3,020 $4,227 Other (per PH trip) $2,2623 $3,393 $4,750 Notes: SFR =Single-Family Residential MFR =Multi-Family Residential AH =Affordable Housing Sq. ft. =square feet of gross floor area PH =Peak Hour (average of AM and PM) 1. Affordable housing projects meeting specific criteria would be exempt from paying fees 2. Retail would be capped at 15% of the maximum 3. The fee for land use category "Other" does not match the current fee from Table 1 because the fee structure currently in place reflects a reduction to the "Other" category fee that was approved by the TVTC after the fee program was initially adopted. The reduction was later applied for retail development to help facilitate the construction of retail projects in the Tri-Valley, as well as for the "other" category, so that fees in this category would be more comparable to commercial uses rather than residential uses. This reduction was not carried forward to the proposed fee structure. This puts the new fee more in line with where it would have been. Page 2 of 4 To put the fee projection into perspective, it is helpful to review the projected construction costs for the projects identified in the Nexus Study Fee Update. The following lists of improvement projects have been identified as those projects that are needed to help alleviate future congestion in the Tri-Valley. ListA -From the original fee program: • A-1 I-580/I-680 Interchange -southbound to eastbound connector (Complete) • A-2a SR-84 Expressway - I-580 to I-680 • A-2b Isabel Route 84/I-580 Interchange • A-3 I-680 Auxiliary Lanes Segment 2 • A-4 West Dublin/Pleasanton BART Station (Under construction, funding complete) • A-Sa I-580 Eastbound HOV Lane • A-Sb I-580 Westbound HOV Lane • A-6 I-680 HOV Lanes (southbound Complete, northbound not considered for funding) • A-7 I-580 /Foothill Road Interchange • A-8 I-680 / Alcosta Interchange (complete) • A-9a Crow Canyon Road Safety Phase I • A-9b Crow Canyon Road Safety Phase II • A-l0a Vasco Road Safety Phase I • A-lOb Vasco Road Safety Phase II • A-11 Express Bus /Bus Rapid Transit List A total unfunded cost: $389,340,000 List B -Added to the fee program in the 2008 update: • B-1 I-580 / I-680 -relieve WB to SB movement • B-2 5th Eastbound I-5801ane, Santa Rita to Vasco • B-3 I-580 /First Street Interchange • B-4 I-580 / Vasco Road Interchange • B-5 I-580 / Greenville Road Interchange • B-6 Jack London Boulevard Extension to El Charro • B-7 El Charro Road Extension • B-8 Camino Tassajara Widening -East Blackhawk Drive to County Line • B-9 Danville Blvd /Stone Valley Rd I-680 Interchange Improvements • B-10 I-680 SB HOV Lanes Gap Closure -North Main to Livorna • B-1la I-680 Express Bus HOV On- and Off-Ramps • B-1 lb I-680 Transit Corridor Improvements List B total unfunded cost: $1,094,830,000 * Removed from the project list, including the associated unfunded construction cost. Funding for these projects ranges from sources at the local, regional, state and federal levels. Excluding TVTDF funding that would be collected in the future if the current fee structure was maintained; the total unfunded cost of both lists is about $1.48 billion. After payment of a 1 % administrative fee, the proposed fee structure would almost fund project List A. Page 3 of 4 From commencement of the TVTDF through Fiscal Year 2007-2008, Dublin has generated approximately 23% of the total TVTDF. With the proposed fee structure, this would amount to Dublin generating $90 million through 2030, of which $18 million (20%) would be retained by the City of Dublin to allocate toward high-priority projects and $72 million (80%) would be submitted to the TVTC for disbursement. The TVTC developed a draft resolution for use by each member jurisdiction for Council or Board approval. Dublin Staff has revised the resolution with respect to one issue. The draft supplied by TVTC indicated that the fees would be used "to fund the unfunded cost of the projects in List A as 1St priority and List B as 2nd priority." Staff amended this sentence to also say, "with the exception that funding for improvements between I-680 and Pigeon Pass under Project A-2a would be lower priority than projects B-1 and B-2 as identified in the Tri-Valley Triangle Study priority list." The Tri-Valley Triangle Study project priority list ranks Project B-1 (I-580 / I-680 interchange) as #5, Project B-2 (5th Eastbound I-580 lane) as #10, and the segment from I-680 to Pigeon Pass of Project A-2a (SR-84 Expressway - I-580 to I-680) as # 12. The revision is proposed to maintain consistency with the established Triangle Study priorities. If the revised fee structure is approved by each member jurisdiction's Council or Board, the TVTC will then hold a public hearing, tentatively set for October 29, 2008. Staff Recommendation Staff recommends that the City Council approve the resolution to update. the Tri-Valley Transportation Development Fee structure. Page 4 of 4 i~ RESOLUTION NO. - 08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING THE TRI-VALLEY TRANSPORTATION DEVELOPMENT FEE PURSUANT TO THE REQUIREMENTS OF THE JOINT EXERCISE OF POWERS AGREEMENT WHEREAS, the Association of Bay Governments (ABAG) projects an additional 157,000 new residents, 58,000 new households and 121,000 new jobs in the geographical area comprising the San Ramon Valley, Livermore Valley and Amador Valley by the year 2020; and WHEREAS, unless the traffic impact of additional residents, households and jobs is timely and adequately mitigated, the quality of life for the existing residents of the Cities and Counties within the Tri-Valley area will be adversely affected; and WHEREAS, the City entered into a Joint Exercise of Powers Agreement (JEPA) with the Counties of Alameda and Contra Costa, the Cities of Livermore, Pleasanton, San Ramon and the Town of Danville to collect Tri-Valley Transportation Development Fees on developments within their respective jurisdictions requiring a Land Use Entitlement to fund off-site infrastructure necessary to mitigate the effects of the ABAG projected growth; and WHEREAS, the Tri-Valley Transportation Council (TVTC) identified and prioritized a list of Projects necessary to provide for the mitigation of the ABAG growth projections; and WHEREAS, the TVTC commissioned a study entitled, "Tri-Valley Transportation Council Nexus Study" (Study) to determine what fees should be collected for each land use to generate sufficient revenue to fund the unfunded cost of the selected Projects, A-2a Route 84 Expressway I-580 to I-680 A-2b Isabel Route 84/I-580 Interchange A-3 I-680 Auxiliary Lanes A-Sa I-580 HOV Lane Eastbound A-Sb I-580 HOV Lane Westbound A-7 I-580/Foothill/San Ramon Road Interchange A-9a Crow Canyon Road Improvements Phase 1 A-9b Crow Canyon Road Improvements Phase 2 A-l0a Vasco Road Safety Improvements Phase 1 A-lOb Vasco Road Safety Improvements Phase 2 A-11 Express Bus/Bus Rapid Transit and Projects from Exhibit Table 4.2, Exhibit B of the Study; B-1 I-580/I-680 interchange (westbound to southbound) B-2 5th eastbound lane on I-580 from Santa Rita to Vasco Road B-3 I-580/First Street interchange modification B-4 I-580/Vasco Road interchange modification B-5 I-580/Greenville Road interchange modification B-6 Jack London Boulevard extension ~-f Pw~ ~ ~ ~ ~ / I Z I ~ g'" -1- ATTACHMENT t? B-7 El Charro Road Extension B-8 Camino Tassajara widening: East Blackhawk Drive to County line B-10 I-680 SB HOV lane Gap Closure, North Main to Livorna B-11 I-680 Express Bus/HOV On- and Off-Ramps B-1 lb I-680 Transit Corridor Improvements WHEREAS, the TVTC, by Resolution No. 2008-05, directed each of the signatories of the JEPA to collect the following development fees, which are less than those determined by the Study to be necessary for the designated Fiscal Years and land uses, which fees are less than those determined by the Study to be necessary to fund the unfunded cost of the Projects in List A as ls` priority and List B as 2°a priority, with the exception that funding for improvements between I-680 and Pigeon Pass under Project A-2a would be lower priority than Projects B-1 and B-2 as identified in the Tri-Valley Triangle Study priority list; FY 2009/2010 TVTC Development Fee Schedule Fee Per Unit Single Family Homes $2,036 Du* Multi-Family Homes $1,295 Du* Retail $1,365 1000sf Office $3,653 1000sf Industrial $2,469 1 OOOsf Other $2,262 PHT** Affordable Housing $0 Du* (FY 2008/2009 Fee Rate, including CCI) FY 2010/2011 Fee Per Unit Single Family Homes $3,053 Du* Multi-Family Homes $2,104 Du* Retail*** $3,400 1000sf Office $5,191 1000sf Industrial $3,020 l OOOsf Other $3,393 PHT** Affordable Housing $0 Du* FY 2011/2012 to FY 2029/2030 Fee Per Unit Single Family Homes $4,275 Du* Multi-Family Homes $2,945. Du* Retail*** $3,400 1000sf Office $7,267 1000sf Industrial $4,227 l OOOsf Other $4,750 PHT** Affordable Housing $0 Du* *Du -Dwelling Unit **PHT -Peak Hour Trip *** Retail set at 15% of maximum for FY 2010/11 to FY 2029/30 WHEREAS, the TVTC acknowledges the need for the creation of additional housing in the Tri-Valley affordable to very low, low, and moderate income households as defined respectively in the State of California Health and Safety Codes Sections 50105, 5007.5, and 50093 or as amended; and -2- J ~°''~ WHEREAS, the State of California Housing and Community Development (HCD) encourages affordable housing to remain deed restricted for 45 years for single family residences and 55 years or longer for multi-family projects and by affordability covenants recorded on the property; and WHEREAS, the TVTC waives the TVTD fee for all very low, low and moderate income affordable housing units meeting the applicable State of California Health and Safety Code Sections requirements and having a minimum affordability term of 55 years (multi-family) and 45 years (single family) based on the percentage of affordable housing units to the total number of units in the project; and WHEREAS, the Joint Exercise of Powers Agreement specifies that the Fee amounts are to be adjusted automatically on an annual basis to reflect changes in regional construction costs. The amount of the adjustment is based on the changes in the "Construction Cost Index" (CCI) for the San Francisco Bay Area, as reported annually in the Engineering News Record (ENR); WHEREAS, the subject application is considered "Not a Project" pursuant to Section 15378 (Project) of the California Environmental Quality Act of 1970, as amended; and is therefore exempt from further environmental analysis. NOW THEREFORE, BE IT RESOLVED, that the development fees directed by the TVTC to be collected will be collected from any development within,the jurisdiction of the City of Dublin that will be granted a Land Use Entitlement. PASSED, APPROVED AND ADOPTED this 2nd day of September, 2008, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk G:\TRANSPORTATION\Regional\TVTC\reso_TVTDF_Update_Approval. doc Mayor -3-