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HomeMy WebLinkAboutItem 8.3 Transit Ctr TIF Reduce Study~~~~ . ~~. ,('~/, /~. CITY CLERK File # ^Q 3^Q-~ d^ AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 19, 2009 SUBJECT: Eastern Dublin Transit Center Traffic Impact Fee Reduction Study Report Prepared by: Mark Lander, City Engineer ATTACHMENTS: 1) Proposal to Evaluate Potential Traffic Impact Fee Reductions for Transit Oriented Development, by Fehr and Peers Transportation Consultants, dated Apri120, 2009 2) Resolution RECOMMENDATION: Adopt the Resolution Approving Work Plan for Eastern Dublin Transit Center Traffic Impact Fee Reduction Study and Authorizing C-r~y Staff to Complete Study. FINANCIAL STATEMENT: The cost of the fee study and any additional Staff or legal costs would be paid by the Alameda County Surplus Property Authority, with no costs to the City. The Eastern Dublin Transit Center Traffic Impact Fee Reduction Study (Study) may result in the adoption of a revised fee schedule that reallocates fees among the properties within the Eastern Dublin Specific Plan area; the reallocation would not impact the City's General Fund. DESCRIPTION: The City Council approved the 2009 Update to the Eastern Dublin Traffic Impact Fee (EDTIF or TIF) following a public hearing on April 7, 2009. The Update will set the rate for fees used to finance streets and other infrastructure to mitigate traffic impacts due to development within the Eastern Dublin Specific Plan area. The Alameda County Surplus Property Authority (ACSPA), along with Avalon Bay Communities and DR Horton, own underdeveloped properties within the Eastern Dublin Transit Center, which is included within the Eastern Dublin Specific Plan, and are therefore subject to the EDTIF when building permits are issued for these properties. These property owners provided both written and verbal testimony before and at the public hearing, requesting that the EDTIF be modified to provide a fee reduction for development COPY TO: Pat Cashman, Alameda County Surplus Property Authority Page 1 of 4 ITEM NO. g'~ G:\TIF~Eastem Dublin\EDTIF Transit Center Fee Reduction, 2009~agst OS-19-09.doc ~} within the Transit Center, in accordance with State Government Code Section 66005.1, on the basis that transit-oriented developments generate less vehicle traffic since residents will instead use public transit. The City Council, in adopting the 2009 Update, directed Staff to prepare a work plan to develop a fee reduction for the Eastern Dublin Transit Center for City Council review and possible implementation. Accordingly, the following plan, including a schedule and costs, is provided. Background Government Code Section 66005.1 states, effective January 1, 2009 that if residential development near a transit center meets certain criteria, the traffic impact fee shall be "set at a rate that reflects a lower rate of automobile trip generation associated with such housing developments in comparison with housing developments without these characteristics." These characteristics are (1) an accessible pedestrian path to the transit station, along a pathway not exceeding one-half mile in length; (2) provisions for limited parking within the site, to discourage vehicle ownership and attract residents who will use transit; and (3) location within one-half mile of "convenience retail uses, including a store that sells food." This requirement is deferred until January 1, 2011, if the development is located within an area covered by a capital improvement plan for traffic facilities which are funded by a development impact fee. The Eastern Dublin Transit Center is subject to the Eastern Dublin Traffic Impact Fee, and therefore the reduced fee rate is deferred until January 1, 2011, provided the above three criteria are met. Development within the Eastern Dublin Transit Center does not currently meet the three criteria, as discussed in the April 7 staff report. In the event a development does not satisfy the above criteria, the agency may charge a fee "that is proportional to the estimated rate of automobile trip generation associated with the housing development." In summary, while the intent of the law would be to recognize the value oftransit-oriented development in fostering transit use in lieu of vehicle trips, the law is vague as to how the reduction will be determined, and assigns that task to the local agency. Residential development at the Eastern Dublin Transit Center currently meets two of the three criteria listed in the Government Code, by virtue of limited parking and close proximity to the BART Station. The third criteria, access to convenience retail uses within one-half mile of the development, is not met. The Hacienda Crossings Center, on the east side of Hacienda Drive, is over ahalf--mile from the far easterly side of the existing Transit Center development. The Green at Park Place (Blake-Hunt) would likely provide retail uses meeting the third criteria, but the schedule for construction of this development is uncertain. It is likely that some number of Transit Center residents utilize BART in lieu of automobile travel and that a reduction in the overall trip rate for the center is warranted. The 2001 Environmental Impact Report (Transit EIR) for the Transit Center used a 25% trip reduction rate for residential uses and a 15% rate for office uses. These reductions were based on a comparison of the rates used in the environmental document for the Pleasant Hill BART Station development, an unbuilt project at the time; the source of the data used in supporting the Pleasant Hill trip rate reductions is not clear. Work Plan Fehr and Peers Traffic Consultants, working as an extension of Staff under an existing on-call contract for traffic engineering services, will review the Transit EIR and supporting documents. Fehr and Peers will determine the appropriate base-line trip generation rate for non-transit oriented developments, and also Page 2 of 4 develop an appropriate trip generation rate for the Eastern Dublin Transit Center using data available from comparable developments. Based on the above, Fehr and Peers will recommend an appropriate trip reduction rate for residential uses at the Transit Center. Public Works Department Staff will revise the EDTIF fee calculations to include the appropriate fee rate for residential development within the transit center. It will also be necessary to revise the fees for development outside of the Transit Center, so that the revenues not collected within the Transit Center due to the fee reduction can be spread to remaining development. Following recalculation of the fee, Staff will prepare an updated Study Update, Staff Report, and Resolution adopting the revised fee schedule. These documents will be circulated for internal review by Staff and the City Attorney. Following internal review, the documents will be made available for public review and a public information meeting will be held. Following the public review period, a public hearing will be scheduled for City Council review and approval of the revised fee. As part of the fee revision, Staff would revise the fee calculations to reflect background information that is accurate as of July 1, 2009 (the April 2009 Update used information accurate as of July 1, 2008). The revised fee would reflect building permit, fee payment, and credit use over the last year, and would also reflect more current cost projections (For example, the Fallon Road/ I-580 Interchange project includes a construction cost contingency; by July the project will be nearing completion and a more accurate final cost can be projected, possibly allowing elimination of the contingency). Costs Costs for the fee reduction study, the fee revision, and Staff Report preparation are estimated as follows: Transit Center Fee Reduction Study (by Fehr and Peers) $ 5,000 City Staff (Senior Transportation Engineer, City Engineer) 12,500 City Attorney 12,500 Mailing Costs 300 Contingency 1,200 Total $31,500 The costs for the fee reduction study are based on a proposal provided by Fehr and Peers Traffic Consultants. The estimated costs for Staff and City Attorney time are based on 50% of the cost expended in development of the 2009 Update for the fee. Staff proposes that the Alameda County Surplus Property Authority (ACSPA) pay for the costs of the study on atime-and-materials basis. The costs for the Fehr and Peers work would be billed to the ACSPA, without the standard markup rate for new development work. These costs are an estimate only and the actual cost to the ACSPA will be dependent on the time actually spent on the study and update. Page 3 of 4 Schedule Ci Council A royal of Fee Rate Ma 19, 2009 Be in Stud Three Weeks Ma 20, 2009 Com lete Stud June 10, 2009 Staff / Ci Attorne Review (Two Weeks June 24, 2009 Revise Stud to Address Comments One Week Jul 1, 2009 Pre are New Fee U date Based on Stud ,Pre are Staff Re ort Five Weeks) Au ust 5, 2009 Internal Review of Fee U date and Staff Re ort Three Weeks Au ust 26, 2009 Revise Fee U date and Staff Re ort to Address Comments Three Weeks Se tember 16, 2009 Mail Notices for Public Information Meetin 14 Da Notice) Se tember 17, 2009 Public Information Meetin October 1, 2009 Res and to Comments, Finalize Staff Re ort Two Weeks October 15, 2009 Mail Notices for Public Hearin 14-Da Notice) October 16, 2009 Public Hearin ,Ado t Revised Fees November 3, 2009 Revised Fees Go Into Effect Janu 3, 2010 Future EDTIF Updates The EDTIF includes a provision periodic review and update of the fee as needed to reflect changes in costs, land use, or other factors that could impact the fee. The ideal time period between updates would be 2 - 3 years. Based on the anticipated Apri12009 Update approval, Staff had previously proposed that the next update would begin in early 2010 and be approved by November 2010 so that it would be in place by January 1, 2011. The update would include a provision for fee reductions for transit-oriented development, which under Government Code Section 66005.1 must be in place by January 1, 2011. The timing of the update would also coincide with the 2 - 3 year update schedule. In the event that the City Council approves the completion of the Transit Center Fee Reduction Study, it is expected that a revised fee incorporating the results of the study would be approved by November 2009. with the revised fees going into effect 60 days later in January 2010. The revised fee would satisfy the requirements of Government Code Section 66005.1, in advance of the January 1, 2011, deadline, eliminating the need for the 2010 update. For this reason, Staff would propose to defer the 2010 update until mid-2011, with the intent that the update be adopted by early 2012. This would result in a 2 - 2'/s year interval between the November 2009 Update and the next update in early 2012. RECOMMENDATION: Adopt the Resolution Approving Work Plan for Eastern Dublin Transit Center Traffic Impact Fee Reduction Study and Authorizing Staff to Complete Study. Page 4 of 4 ~~y FEHR Sz PEERS TRANSPORTATION [ONSU tTANTS April 22, 2009 Jaimee Bourgeois, P.E. City Traffic Engineer City of Dublin 100 Civic Plaza Dublin, CA 94568 Re: Proposal to Evaluate Potential Traffic Impact Fee Reductions for Transit Oriented Development Dear Jaimee: Thank you for inviting Fehr & Peers to assist in evaluating the potential for traffic impact fee reductions for Transit Oriented Development (TOD) sites. As you may know, Assembly Bill 3005 allows local agencies, for the purpose of mitigating vehicular traffic impacts of a housing development located near a transit station and meeting other specified characteristics, to set traffic impact fees at a rate that reflects the potential for reduced automobile trip generation if a residential project meets all of the following criteria: 1. located within one-half mile of a transit station 2. direct access between the housing development and the transit station along abarrier-free walkable pathway not exceeding one-half mile in length 3. located within a half mile of a store that sells food 4. provides either the minimum number of parking spaces required by local ordinance or no more than one on-site parking space for zero to two bedroom units and two on-site spaces for three or more bedroom units, whichever is less. To ensure that existing projects do not get under-funded by retroactive restrictions on fees, the bill was amended to specify that the bill's provisions do not apply until January 1, 2011, to a housing development that is located within an area covered by a capital improvement plan for traffic facilities that was adopted on or before January 1 2009. To assist in evaluating the potential fee reduction that could be applied to residential developments near transit, we have developed the following scope of work, schedule and fee estimate. SCOPE OF WORK Task 1-Baseline Trip Generation Fehr & Peers will document daily, AM and PM peak hour trip generation rates for apartments and condominiums/townhomes using standard Institute of Transportation Engineer rates from Trip Generation. This will set the baseline for vehicular trip generation for resident developments. 100 Pringle Avenue, Suite 600 Walnut Creek, CA 94596 (925) 930-7100 Fax (92 ° _.~,;,. ., www.fehrandpeers.com I ~~~' f:"~ ~` ~~ , ~ ~ ~ ~`~ f %,"r AITACNYIF.~RR ~l. ~~~ ~: Jaimee Bourgeois April 22, 2009 Page 2 of 2 FEHR ~t PEERS 1MS~OR(R!::IN tfI N~II:tMk`S Single-family homes will not be considered in this assessment, as the densities required to support a TOD development are not typical of asingle-family home development. Task 2 -Trip Adjustments Fehr & Peers will develop trip rate reduction factors for residential development located within a 1/2-mile and 1-mile of a transit station. SB 3005 requires that a TIF reduction be evaluated for developments located within a 1/2-mile of a transit station; however, a reduction for developments greater than 1/2-mile and less than 1-mile can be adopted at the discretion of the local agency. The reduction factors will consider the following: proximate land uses (such as employment centers and food stores); transit mode share (calculations will also consider employment located within a 30-minute transit ride from the Dublin/Pleasanton BART station, as well as the new West Dublin station), and Urban Design considerations, including the directness of the pedestrian routes and proposed parking supply of the development. The basis for trip reductions will be developed based on a review of available research and studies already completed by Fehr 8~ Peers. No new data will be collected as part of this project. References for all data used in the development of trip reductions will be provided. Task 3 -Documentation The results of Tasks 1 and 2 will be summarized in a technical memorandum for review by City of Dublin staff. Our scope of work assumes two rounds of review by City staff. It is anticipated that the potential trip reduction factors would be used to inform decision makers regarding the potential to reduce traffic impact fees for residential developments around transit centers. Any decisions to reduce traffic impact fees should consider if the fee program funds non-motorized transportation facilities, such as bicycle facilities, as TOD projects would still contribute to the need to construct those facilities. SCHEDULE AND FEE We will commence work upon receipt of authorization to proceed. It is anticipated that a technical memorandum detailing the tasks would be submitted within two weeks of receipt of authorization to proceed. The fee for this work is $5,000. We look forward to working with you on this project. Please call Kathrin if you have any questions. Sincerely, FEHR & PEERS 1,,...-- ~.~,.- Robert E. Rees, P.E. Principal Kathrin Tellez, AICP, PTP Associate P09-3012-WC ~~ ~ RESOLUTION NO. -09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN RESOLUTION APPROVING WORK PLAN FOR EASTERN DUBLIN TRANSIT CENTER TRAFFIC IMPACT FEE REDUCTION STUDY AND AUTHORIZING STAFF TO COMPLETE STUDY WHEREAS, the City Council of the City of Dublin has adopted Ordinance No. 14-94 which creates and establishes the authority for imposing and charging a Transportation Impact Fee; and WHEREAS, the City Council adopted Resolution No. 1-95 on January 9, 1995, establishing an "Eastern Dublin Traffic Impact Fee"(EDTIF) for development within Eastern Dublin; and WHEREAS, the City Council adopted Resolution No. 41-96 on April 9, 1996, revising the fee established under Resolution No. 1-95; and WHEREAS, the City Council adopted Resolution No. 225-99 on December 7, 1999, revising the fee established under Resolution No. 41-96; and WHEREAS, the City Council adopted Resolution No. 111-04 on June 15, 2004, revising the fee established under Resolution No. 225-99; and WHEREAS, the City Council adopted Resolution No. 41-09 on April 7, 2009, revising the fee established under Resolution No. 111-04; and WHEREAS, testimony was received during the public hearing, requesting that the City Council incorporate into the EDTIF a provision for reducing fees within the Eastern Dublin Transit Center (Transit Center), as allowed under State Government Code Section 66005.1, on the basis that transit- oriented developments generate less traffic than conventional development due to proximity of public transit; and WHEREAS, the City Council directed Staff to prepare a work plan to develop a fee reduction study for the Transit Center, to determine if further revision to the EDTIF is appropriate to reflect lower trip generation rates for development within the Transit Center; and WHEREAS, Staff has completed the work plan; and WHEREAS, the City Council has reviewed the work plan and concurs with the scope of work; NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the work plan and authorizes Staff to complete the study, once funds have been provided by the Alameda County Surplus Property Authority. enea~r z. fi ~~ ~~ PASSED, APPROVED AND ADOPTED this 19th day of May, 2009, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor G: ITIFIEastern DublinlEDTIF Transit Center Fee Reduction, 20091reso 5-19-09.DOC 2