HomeMy WebLinkAbout8.4 Tri Valley Transportation
CITY CLERK
File # D[5J~[QJ-~ll2J
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 15, 2008
SUBJECT:
Tri-Valley Transportation Development Fee Update (TVTDF) and
Tri- Valley Transportation Council (TVTC) Participation Evaluation
Report Prepared by: Jaimee Bourgeois, Traffic Engineer
ATTACHMENTS:
None.
RECOMMENDATION:
1)
Receive the presentation regarding the TVTDF update and
provide comment as appropriate regarding the proposed fee
structure for Mayor Lockhart's consideration and feedback to
the TVTC; and
Direct that the City of Dublin continue participation in the
TVTC.
,~~
2)
FINANCIAL STATEMENT:
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 Councilor Board, then the City of Dublin will likely
receive additional development revenues that will be allocated
toward high-priority transportation projects.
DESCRIPTION: In 1995, the Tri-Valley Transportation Council (TVTC) identified in
the Tri-Valley Transportation Action Plan 11 regional transportation improvements within the Tri-Valley
that would be needed to mitigate the impacts of future development in the Tri- Valley. A nexus fee study
was completed that provided justification for allocating the unfunded cost needed to complete all ofthe 11
projects to new development. In 1998, the TVTC established the Tri- Valley Transportation Development
Fee (TVTDF). The following year, the TVTC adopted a Strategic Expenditure Plan that programmed
anticipated TVTDF revenue to certain projects in the fee program. 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 Tri-Valley Transportation Council approved a Tri-Valley Nexus
Study Report that identifies the maximum allowable development fees that could be applied to
development to fully fund the two lists of transportation improvement projects. Table 1 presents the
maximum allowable fees for each land use category in comparison to the current fees.
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TABLE 1
EXISTING FEES VERSUS APPROVED MAXIMUM ALLOWABLE FEES
Multi-Famil
Office
Retail
Industrial
Other
$2,036
$1,295
$3.65
$1.36
$2.47
$815
Maximum
Allowable Fee
$12,238
$8,430
$20.80
$22.71
$12.10
$13,598
The large difference between the current fees and the maximum allowable fees is not fully attributable to
the additional improvement projects added to the program; rather, it was agreed upon by the TVTC when
the fees were originally established that charging the maximum fees to complete construction of all 11
original projects would place too great a burden on development. Instead, fees that were approximately
20% percent of the maximum allowable fees at the time were adopted into the program. A further
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.
A TVTC sub-committee was formed to commence development of a new fee structure based upon the
newly-approved maximum allowable fees. The fee structure options discussed ranged from maintaining
the current fee structure to charging up to 40% of the maximum allowable. Increasing the fees o,,:er
several years was also discussed. Various options were subsequently discussed by the greater TVTC at
the June 30th meeting. These included:
Option 1. Charge 35% of the maximum allowable fees
Option 2. Phased approach: Year 2009-2010: Maintain current rates
Year 2010-2011: Charge 25% of the maximum allowable fees
Years 2011-2030: Charge 35% of the maximum allowable fees
Option 3. Same as Option 2 with retail capped at 15% of the maximum allowable
Option 4. Same as Option 2 with affordable housing capped at the current housing rate
Option 5. Same as Option 2 with retail cap and affordable housing cap
Option 6. Maintain current fees
The total projected fees that would be collected between 2009 and 2030 are presented in Table 2.
TABLE 2
FEE PROJECTIONS BY OPTION
1- 35% ofmax
2 - Phased into 35% ofmax
3 - Phased wi retail ca
4 - Phased wi AH ca
5 - Phased wi retail and AH ca
6 - Maintain current fees
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Through discussions at the June 30th TVTC meeting, the following guidelines were set and generally
agreeable to all TVTC members:
· Charge no more than 35% ofthe maximum allowable
. Phase the new fees in over a two-year period
. Cap the retail fee at 15% ofthe maximum allowable
· All affordable housing projects (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 3. This
fee structure would generate an estimated $388 million between 2009 and 2030.
TABLE 3
PROPOSED FEE STRUCTURE
$2,036
$0
$1,295
$0
$3.65
$1.36
$2.47
$815
Year 201
25% Max
$3,059
$0
$2,107
$0
$5.20
$3.41
$3.02
$4,000
Years 2011-
35%
$4,282
$0
$2,950
$0
$7.28
$3.41
$4.23
$4759
Notes:
SFR = Single-Family Residential
MFR = Multi-Family Residential
d. u. - dwelling unit
AH = Affordable Housing
Sq. ft. = square feet of gross floor area
PH = Peak Hour (average of AM and PM)
1. Affordable housing projects would be exempt from paying fees
2. Retail would be capped at 15% of the maximum
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.
List A - From the original fee program:
. A-I
. A-2a
. A-2b
. A-3
. A-4
1-580/1-680 Interchange - southbound to eastbound connector (Complete)
SR-84 Expressway - 1-580 to 1-680
Isabel Route 84/1-580 Interchange
1-680 Auxiliary Lanes Segment 2
West DublinIPleasanton BART Station
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. A-5a
. A-5b
. A-6
. A-7
. A-8
. A-9a
. A-9b
. A-I0a
. A-I0b
. A-11
1-580 Eastbound ROV Lane
1-580 Westbound ROV Lane
1-680 ROV Lanes (southbound Complete, northbound not considered for funding)
1-580 I Foothill Road Interchange
1-680 I A1costa Interchange (complete)
Crow Canyon Road Safety Phase I
Crow Canyon Road Safety Phase II
Vasco Road Safety Phase I
Vasco Road Safety Phase II
Express Bus I Bus Rapid Transit
List A total unfunded cost:
$389,340,000
List B - Added to the fee program in the 2008 update:
. B-1
. B-2
. B-3
. B-4
. B-5
. B-6
. B-7
. B-8
. B-9
. B-I0
. B-ll a
. B-ll b
580 I 1-680 - relieve WB to SB movement
5th Eastbound 1-580 lane, Santa Rita to Vasco
1-580 I First Street Interchange
1-580 I Vasco Road Interchange
1-580 I Greenville Road Interchange
Jack London Boulevard Extension to El Charro
EI Charro Road Extension
Camino Tassajara Widening - East Blackhawk Drive to County Line
Danville Blvd I Stone Valley Rd 1-680 Interchange Improvements *
1-680 SB ROV Lanes Gap Closure - North Main to Livorna
1-680 Express Bus ROV On- and Off-Ramps
1-680 Transit Corridor Improvements
List B total unfunded cost:
$1,097,430,000
* This project has been removed from the project list.
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 $1.5 billion. After payment of administrative TVTDF fees, the
proposed fee structure, which would generate revenues totaling $388 million, would almost fund project
List A. If alternate funding sources are identified for projects on List A, then some ofthe money could be
allocated to proj ects on List B.
In prior years, Dublin has generated approximately 26% of the total TVTDF. With the proposed fee
structure, this would amount to Dublin generating $100 million through 2030, of which $20 million (20%)
would be retained by City of Dublin to allocate toward high-priority projects and $80 million (80%)
would be submitted to the TVTC for disbursement.
A change in the fee structure requires unanimous approval from the TVTC followed by approval from
each member jurisdiction. Without consensus, the fee will remain unchanged. It is anticipated that a fee
structure will be approved by TVTC on July 30th. The fee structure would then be brought before the City
Council for adoption in August or September.
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Evaluation of Participation in the TVTC
A goal for the 2007-2008 fiscal year with respect to intergovernmental relations was specifically "to work
with other agencies on problems of area-wide concern..." One of the high priority objectives under this
goal was to evaluate the benefits of Tri-Valley Transportation Council participation. Public Works has
completed such an evaluation.
In the past, the City of Dublin has benefited financially from participation in the TVTC by obtaining
funding through the TVTDF for important projects. As of July 2007, the City of Dublin generated $12.24
million in TVTDF, including $2.44 million in 20% funds and $9.8 million in 80% funds. During the
same time period, Dublin benefited from the construction of three TVTC-funded projects: the 1-580/1-680
southbound to eastbound connector, the West DublinIPleasanton BART station, and the I-580/San Ramon
Road interchange improvements. With consideration of monies specifically allocated to these projects,
Dublin's benefits have exceeded its contributions. Total TVTC disbursement to these three projects has
been $2.4 million in 20% funds and $10.4 million in 80% funds, totaling $12.8 million, which is more
than the City's $12.24 million contribution.
In the future, it is expected that monies disbursed to SR-84, 1-580 ROV Lanes, and I-580/Foothill Road
interchange will contribute to improved traffic conditions for Dublin residents and workers. The
comparison of cost and benefit to Dublin will greatly depend on the fee structure currently under review
and the Strategic Expenditure Plan to be updated over the next year.
Aside from the direct potential fiscal benefits, participation in the TVTC offers the following additional
benefits:
. Provides Dublin a voice in determining where TVTDF monies are to be allocated.
. Provides Dublin an opportunity to identify visions, goals and policies that define future
transportation in the Tri- Valley through preparation of the Tri- Valley Transportation Plan.
. Facilitates cooperative participation with neighboring jurisdiction staff and policy makers.
Staff Recommendation
Staff recommends that the City Council 1) receive the presentation regarding the TVTDF update and
provide comment as appropriate regarding the proposed fee structure for Mayor Lockhart's consideration
and feedback to the TVTC; and 2) direct that the City of Dublin continue participation in the TVTC.
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