HomeMy WebLinkAbout6.1 Tri-Valley Transportation Dev Fee oe
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1y'- ' '82 STAFF REPORT CITY CLERK efl .40
' CITY COUNCIL File # 5g0-fsa
DATE: May 19, 2015
TO: Honorable Mayor and City Councilmembers
FROM: Christopher L. Foss, City Manager
SUBJECT: Adoption of a Resolution Approving an Adjustment to the Tri-Valley
Transportation Development Fee
Prepared by Obaid Khan, Transportation and Operations Manager
EXECUTIVE SUMMARY:
In 2008, the Tri-Valley Transportation Council (TVTC) completed a Fee Nexus Study Update
and developed new Tri-Valley Transportation Development (TVTD) Fee amounts for member
agency consideration. The Dublin City Council adopted a Resolution in 2008 approving the
proposed new fee increases, which would have gone into effect on July 1, 2010, across all land
use categories. The Resolution was later rescinded because not all seven TVTC member
agency's approved the fee increases. On October 17, 2013 TVTC became an independent
public agency through the adoption of a new Joint Exercise of Powers Agreement (JEPA), and
on June 19, 2014 the Transportation Council approved the update to the TVTD Fee amounts.
Member agency staff is now bringing the approved fee amounts to their respective elected body
to consider adopting the updated fee amounts. If approved by the City Council, the updated fee
amounts would be effective on July 1, 2015.
FINANCIAL IMPACT:
There is no City cost associated with this item. The City Council adoption is necessary to
implement collection of the proposed TVTD Fee. Through fiscal year 2024, the proposed rates
are expected to generate approximately $69 million for the identified regional transportation
improvements. At the existing rates, projected revenue would only be approximately $42.5
million. Per the provisions of the TVTC JEPA, 80% of the TVTD Fee revenue is administered by
the TVTC, while 20% is allocated directly to the member jurisdictions, to be used at their
discretion on projects listed in the TVTC Strategic Expenditure Plan
RECOMMENDATION:
Staff recommends that the City Council conduct the public hearing, deliberate, and adopt the
Resolution Adopting the Tri-Valley Transportation Development Fee pursuant to the
Requirements of the Joint Exercise of Powers Agreement.
C-k4mitte B Y \. Reviewed By
Public Works Director Assistant City Manager
Page 1 of 3 ITEM NO. 6.1
DESCRIPTION:
The Tri-Valley Transportation Council (TVTC) is composed of elected officials from Danville,
Dublin, Livermore, Pleasanton, San Ramon, Alameda County and Contra Costa County. The
initial purpose of the TVTC was to develop and adopt the Tri-Valley Transportation Plan/Action
Plan (TVTP/AP). In 1998 and 1999, the TVTC established a Tri-Valley Transportation
Development (TVTD) Fee, and adopted a Strategic Expenditure Plan that programmed
anticipated TVTD Fee revenue to 11 regional transportation projects (Attachment 1) that were
identified in the TVTP/AP. The governing documents provide for annual adjustments to the fee
based upon the annual change in the Construction Cost Index. In 2004, the TVTC began the
process of updating the fee nexus study. A second list of 11 new projects was included in the
updated study. (Attachment 2)
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. To cover more of the unfunded
balance of project construction costs, the TVTC subsequently developed a proposed new fee
structure with phased increases, to be considered by each member agency. In this proposal,
the first adjustment to the new fees was scheduled to take place July 1, 2010.
The City of Dublin adopted Resolutions approving the new fee structure in October 2008 and
then an updated fee in April 2011. However, due to an impasse on voting structure at the TVTC,
the updated fees were never implemented. The increase in fees was stalled due to the
requirement of having a unanimous vote at the TVTC for approving a fee increase. To tackle the
issue of voting structure, TVTC initiated an update to the JEPA in 2012 that, in addition to
establishing an independent agency, would also change the unanimous vote requirement for fee
increases to a supermajority of six to one (6 to 1). Additionally, the new JEPA eliminated project
funding to a member agency for a TVTD funded project should that agency fail to adopt the fee
structure approved by the TVTC. All member agencies executed the new JEPA with these key
changes on October 17, 2013.
Since the 2011 fee increase was never implemented, and the voting impasse had been
resolved, in February 2014 the TVTC decided to re-address the shortfall in funding for the 22
TVTC projects (Attachments 1 and 2) by initiating a new update to the TVTD Fee. Early in this
process, the TVTC received concerns from the development community about the fee structure
and the timing of fee imposition. TVTC asked TVTC Technical Advisory Committee (TVTC-TAC)
to implement a concerted outreach to the development community in the Tri-Valley Area to
receive input.
The TVTC-TAC worked directly with the development community on this effort, starting with a
kick-off public outreach meeting directly advertised to over 200 developers. In response to
feedback, and through continuous dialogue and additional meetings with the development
community, the TVTC recommended a reduced, phased-in fee structure rather than
recommending fee rates at a maximum level which would generate sufficient revenues to fund
all 22 TVTC projects, as allowed by the 2008 Nexus Study.
The TVTC approved a fee structure and schedule endorsed by the development community
(Attachment 3) on June 19, 2014. However, due to an administrative error a resolution
approving the fee structure was not approved at this meeting, and was actually adopted on
January 26, 2015 TVTC meeting (Attachment 4).
Page 2 of 3
The TVTC fee resolution defers implementation of a fee increase to 25% of the maximum
allowable rate starting in July 2015 and increasing to 35% of the maximum allowable rate in July
2016. The cap for retail use would be 15% of the maximum allowable rate to help promote retail
development. These rates produce a fee increase ranging from 44% for industrial development
to 111% for retail. While these fee increases are sizable compared to today's fee, they are only
a portion of what is needed to fully fund the TVTC projects and substantially less than what is
allowable. Attachment 5 fully outlines the new fee structure.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
As required by Government Code Section 66016, notices were mailed 14 days in advance of
this meeting to all interested parties, data was made available 10 days in advance of the
meeting, and this item is being discussed as part of an open public meeting. As required by
Government Code Section 66018, notice was also published twice in the Valley Times
Newspaper prior to this meeting.
ATTACHMENTS: 1. Existing TVTC Project List
2. Additional TVTC Project List
3. Letter of Support from Bay Area Building Industry Association
4. Adopted TVTC Resolution 2015-01
5. Tri-Valley Transportation Council — Proposed New Fee Schedule
6. Resolution adopting the Tri-Valley Transportation Development Fee
pursuant to the Requirements of the Joint Exercise of Powers
Agreement
Page 3 of 3
Attachment 1
Table 4.1 Existing TVTC Projects— Exhibit A
(Millions of 2007 Dollars)
Total Unfunded
Project Cost Cost Comments
A-1 1-580/1-680 Interchange(southbound to eastbound) — — Project completed
A-2a Route 84 Expressway 1-580 to 1-680 $336.57 $221.77 Project partially
complete
A-2b Isabel Route 84/1-580 Interchange $180.00 $15.00 Phase 1 complete
A-3 1-680 Auxiliary Lanes $47.00 $38.33 Project completed
A-4 West Dublin/Pleasanton BART Station — — Project completed
A-5a 1-580 HOV Lane Eastbound $161.87 $8.00 Project completed
A-5b 1-580 HOV Lane Westbound $165.40 $20.00 In Construction
A-6 1-680 HOV Lanes,SR 84 to Top of Sunol Grade — — —
A-7 1-580/Foothill/San Ramon Road Interchange $0.81 $0.81 Project completed
A-8 1-680/Alcosta Interchange — — Project completed
A-9a Crow Canyon Road Improvements Phase 1 $15.50 $10.95 —
A-9b Crow Canyon Road Improvements Phase 2 $32.34 $32.34 —
A-10a Vasco Road Safety Improvements Phase 1 $23.25 $4.15 —
A-10b Vasco Road Safety Improvements Phase 2 $25.83 $25.83 —
A-11 Express Bus/Bus Rapid Transit $20.36 $12.16 —
Total $1,008.93 $389.34
Attachment 2
Table 4.1 Additional TVTC Projects— Exhibit B
(Millions of 2007 Dollars)
Project Total Cost Unfunded Cost
B-1 1-580/1-680 interchange(westbound to southbound) $705.00 $700.00
B-2 5th eastbound lane on 1-580 from Santa Rita to Vasco Road $131.30 $131.30
B-3 I-580/First Street interchange modification $30.30 $4.20
B-4 1-580/Vasco Road interchange modification $50.50 $14.60
B-5 1-580/Greenville Road interchange modification $35.35 $7.77
B-6 Jack London Boulevard extension $27.78 $3.54
B-7 El Charro Road Extension $18.50 $5.00
B-8 Camino Tassajara widening: East Blackhawk Drive to County line $49.43 $44.92
B-9 nan„ouo Rel llewap l Stone Valle„Rd 1 690 Internhange Improvements* $2.70 $2.60
B-10 1-680 SB HOV lane Gap Closure,Livorna to North Main $55.00 $36.27
B-11a 1-680 Express Bus/HOV on-and Off-Ramps $80.00 $47.30
B-11 b 1-680 Transit Corridor Improvements $100.00 $100.00
Total $1,285.86 $1,097.50
* Removed from funding consideration
DATE: June 16, 2014
u L 0 1 C,IS D 5 T A AS 54 C AT Vc I RE: Tri-Valley transportation development fee increase hearing on June 19, 2014
TO: Chairman Scott Haggerty and committee members
Tri-Valley Transportation Council
Heritage House, Alameda County Fairgrounds
4501 Pleasanton Ave., Pleasanton CA 94566
Dear Chairman Haggerty:
The Building Industry Association I Bay Area is pleased to support the recommendations
of the Tri-Valley Transportation Council's staff and Finance Committee to implement
proposed development fee increases in two phases starting July 1, 2015, and
commencing on July 1, 2016. The timeline provides homebui(ders with critical
advance notice of what will ultimately be a substantial increase of 76 percent per
single-family unit and 90 percent per multifamily unit.
We would also Like to recognize,your staff members for their willingness to meet with
us on multiple occasions and discuss ways to mitigate the impacts of ever-rising fees
imposed on an industry that is still struggling to recover in the wake of the Great
Recession.
White we may not agree on every solution, we can all agree that an effective
transportation:, network is critical to our mutual constituents. We took forward to
maintaining a positive working relationship with the TVTC and its staff.
Sincerely yours,
Lisa A. Vorderbrueggen
Executive Director for Governmental Affairs, Eastern Division
Building Industry Association I Bay Area
Ivorderbru!?q&en@bia aykMa.org
Twitter @" B_1ABayA_rea
ailling Address: 925-951-6843 (direct)
M
925-348-1956 (mobile)
2350 Treat Blvd.
Suite 140 Contra Costa Centre Transit Village
Walnut Creek 1350 Treat Blvd., Suite 140
California 94597 Walnut Creek, CA 94597
CC: Bob Glover, CEO, Building Industry Association I Bay Area
Tel(925)95I-6840 Paul Campos, Senior Vice President of Governmental Affairs&General Counsel, NA�Bay Area
Fax(925)951-6847 Paul,Keener, Senior Transportation Planner,Alameda County Public Works Agency
www,blabaya,reai.org
'I'RIII---'VALI.,3P,Y TRANSPORIATION COUNCIII
I RESOLU'rION NO.20�15-01
ADOPTING THE UPDA."I"ED TRI-VAIAXY"FRANSPORTAXION
DEVE1,01"IMEN'T(TVTD)FEE S('!W.E,'DI.TLE
If EREAS,on F'ebruary 26,2008, the'I"n Val1ey Transportation Council.(TVT(.'.,)
adopted.the findings of the Iri Valley Tranisportation Council'Nexus.Study Fee I.Jpdate
( 'Stuudy");and
WHEREAS, the Study considere,..,d the following. Projects and the niul:iiaber of trips
generated by each of the land.use types and determined the Maximum Fe.e., Rate f.br
of the,I and uses; fromi 71'abl e 4.1.,I.E.Ix.hi lbit A of due Study:
.A.-2a Route 841-"�'.xpressway 1 580 to 1-680
A 2b Isabel.Route 84/1-580 Interchange
A 3 1 680 Auxiliary Lanes
A-5a I 580 110V Lane Eastbound
A I 580 110V'Lane Westboimd
A 7 I 580/Foothill/Saa Ranion Road Interchange-
A-% Crow Canyon.Ro4d IriaproveraenW Phase I
A-9b Crow Canyon,Ru:o ad Improv ern ents.phase 2
.-I Oa Vasco Road Sa&,ty Improvemm,its Pbase I
A 1.Ob Vasco,Road Safety Improvernents,Phase 2
A-1.1. Exprem BusJ.Bus Rapid Transit
Projects fi-om Exlmbit"I" le 4.2, Exbibit B of flie Study:
B 1 1-580/1-680 interchange(westbotind to, southbound)
B 2 5th emtbomd lane on.I,580 firona Smita Rita to Vasco Road
B 3 1 580/lPlirst Street intexchan.ge nxiodification
B,4 1,,,.580/V s uo Road interchange-inodification
B-5 I 580/GreenviHe Road,interchange modification
B 6 Jack.London.Bmilevard extension
B-7 El Churo Road Extmision.
B-8 Camino"I"assajara wideming: East BlackIawk Drive to County line
B-10 1-680 SB 110V lane Gap Closure,Nofth Main to Livorma
B, 11. 1 680 Express Bus/1"10V(3n.- and Off-Ramps
B-I lb 1-680 Transit Comdor Iml:o rovenxmm.ts
WH12"MEAS,the TVTC Financial Committee recomnie mom ded tlie proposed"I'VTD.Fee,
increase in a tW0---YE!ar p�,iase-in. .pbn,with.muuo cfiiangE�in.the initial year (ITY 2.01.4-
15),an.inc mine ase to 25% of the mkWmm.n.a1l.owable ratr by the fee nexus study in
the sec on(I year (PY 2015, effi cb.ve julY 1.,201.0,and a,final increase to 35% of the
maximum.aflow-able rat p by the third year(FY 201.6,effective July Z 201.6); and
WIIERIKAS,(.nLi June 19,201.4,T'VTC ollpened a public hearing,to consider the'I'VID
Fee adjustment, as recor.mmended by the'IVIV Financial.Conmaittee; md
VMEREAS, on June 19, 2014, after receiving public comment, TVTC closed the public
hearing; and
VMEREAS,on June 19, 2014 T-*v'TC approved the updated TVTD fee schedule as
recommended by the TVTC Financial Committee; and
NYHEREAS,the Cities of San Ramon, Pleasanton, Dublin,Livermore, and Town of
Danville have authorized the approval of the updated TVTD fee schedule as
recommended by the TVTC Financial Committee and TVTC; and
NOW THEREFORE BE IT. L : .
1. TVTC adopts the following Fee Schedule for each of the designated land uses for
the Fiscal Years indicated and finds that said Fee Schedule is determined by the
Study to be necessary to generate sufficient revenue to fund portions of the
unfunded cost of the listed Projects:
FY 2015/2016 through FY 201612017 Fee Schedule
Fee(256/6) 1 Fee (35%) Per Unit
Single Family Homes $1059.50 @ $4,283.30 Du*
Multi-Family Homes $2,107.50 $2,950.50 Du*
Office $5.20 $7.28 SF
Retail*** $3.41 .$3.41 SF
Industrial $3.03 $4.24 SF
Other $3,399.50 $4,759.30 PHT**
Affordable Housing $0 $0 I)U*
Du=Dwelling Unit
PHT=Peak Hour Trip
Retail is set at 15%of maximum.for FY2014/15 to FY 2029/30
2. TVTC directs each of the signatory parties to the Joint Exercise of Powers
Agreement(JEPA), October 17, 2013,to collect such fees on developments
located within their respective jurisdictions for which they grant a Land Use
Entitlement and dispose of said exactions in the manner provided for in the JEPA-
and
PASSED.APPROVED AND ADOPTED at the meeting of January 26, 2015 by the
following votes:
AYES-. G
ABSENT:
Tri-Valley Transportation Council
ATTEST:
Attachment 5
Tri-Valley Transportation Council - Proposed New Fee Schedule
2008 Fee Nexus Study Maximum Allowable Rates
Designation Fee Per Unit
Single Family Homes $12,238 Dwelling Unit
Multi-Family Homes $8,430 Dwelling Unit
Retail $22,710 1,000 square foot
Office $20,800 1,000 square foot
Industrial $12,100 1,000 square foot
Other $13,598 Peak Hour Trip
Affordable Housing $0 Dwelling Unit
Fiscal Year 2014/2015 (fees at current levels)***
Designation Fee Per Unit Increase over
14/15 rates
Single Family Homes $2,433 Dwelling Unit 0 %
Multi-Family Homes $1,549 Dwelling Unit 0 %
Retail $1,620 1,000 square feet 0 %
Office $4,370 1,000 square feet 0 %
Industrial $2,950 1,000 square feet 0 %
Other $2,433 Peak Hour Trip 0 %
Affordable Housing $0 Dwelling Unit N/A
Fiscal Year 2015/2016 (fees at 25% of maximum)***
Designation Fee Per Unit Increase over
14/15 rates
Single Family Homes $3,060 Dwelling Unit 26%
Multi-Family Homes $2,108 Dwelling Unit 36%
Retail $3,410 1,000 square foot 111%
Office $5,200 1,000 square foot 19%
Industrial $3,030 1,000 square foot 3%
Other $3,400 Peak Hour Trip 40%
Affordable Housing $0 Dwelling Unit N/A
Fiscal Year 2016/2017 (fees at 35% of maximum)***
Designation Fee Per Unit Increase
over 14/15 rates
Single Family Homes $4,283 Dwelling Unit 76%
Multi-Family Homes $27951 Dwelling Unit 91%
Retail $37410 1,000 square foot 111%
Office $77280 1,000 square foot 67%
Industrial $47240 1,000 square foot 44%
Other $47759 Peak Hour Trip 96%
Affordable Housing $0 Dwelling Unit N/A
*** Subject to annual cost of living adjustments
RESOLUTION NO. — 15
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, population and employment projections estimate an additional 123,000
residents, 45,000 households, and 56,000 jobs in the geographical area comprising the San
Ramon Valley, Livermore Valley, and Amador Valley by the year 2040; and
WHEREAS, unless the traffic impact created by these 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 of Dublin 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 projected growth; and
WHEREAS, the Tri-Valley Transportation Council (TVTC) identified and prioritized a list
of projects necessary for the mitigation of the growth projections; and
WHEREAS, The TVTC commissioned a study titled, Tri-Valley Transportation Council
Nexus Study, adopted on February 26, 2008 ("Study") to determine what fees should be
collected for each land use to generate sufficient revenue to fund the unfunded cost of the
following selected transportation projects ("Projects"); and
A-2a Route 84 Expressway 1-580 to 1-680
A-2b Isabel Route 84/1-580 Interchange
A-3 1-680 Auxiliary Lanes
A-5a 1-580 HOV Lane Eastbound
A-5b 1-580 HOV Lane Westbound
A-7 1-580/Foothill/San Ramon Road Interchange
A-9a Crow Canyon Road Improvements Phase 1
A-9b Crow Canyon Road Improvements Phase 2
A-10a Vasco Road Safety Improvements Phase 1
A-10b Vasco Road Safety Improvements Phase 2
A-11 Express Bus/Bus Rapid Transit
B-1 1-580/1-680 interchange (westbound to southbound)
B-2 5th eastbound lane on 1-580 from Santa Rita to Vasco Road
B-3 1-580/First Street interchange modification
B-4 1-580/Vasco Road interchange modification
B-5 1-580/Greenville Road interchange modification
B-6 Jack London Boulevard extension
B-7 El Charro Road Extension
B-8 Camino Tassajara widening: East Blackhawk Drive to County line
- 1 -
B-10 1-680 SB HOV lane Gap Closure, North Main to Livorna
B-11 1-680 Express Bus/HOV On- and Off-Ramps
B-11 b 1-680 Transit Corridor Improvements; and
WHEREAS, on June 19, 2014, the TVTC approved the following development fees and
directed each of the signatories of the JEPA to collect the fees, which are less than those
determined by the Study to be necessary for the designated fiscal years and land uses, and
which are less than those determined by the Study to be necessary to fund the unfunded cost of
the Projects; and
TVTC Development Fee Schedule
FY 2014/2015 Fee Per Unit
Single Family Homes $27433 Du*
Multi-Family Homes $17549 Du*
Retail $17620 17000sf
Office $47370 17000sf
Industrial $27950 17000sf
Other $27433 PHT**
Affordable Housing $0 Du*
FY 2015/2016 Fee Per Unit
Single Family Homes $37060 Du*
Multi-Family Homes $27108 Du*
Retail*** $37410 17000sf
Office $57200 17000sf
Industrial $37030 17000sf
Other $37400 PHT**
Affordable Housing $0 Du*
FY 2016/2017 Fee Per Unit
Single Family Homes $47283 Du*
Multi-Family Homes $27951 Du*
Retail*** $37410 17000sf
Office $77280 17000sf
Industrial $47240 17000sf
Other $47759 PHT**
Affordable Housing $0 Du*
*Du — Dwelling Unit
**PHT — Peak Hour Trip
*** Retail set at 15% of maximum for FY2014/15 to FY 2016/17
WHEREAS, The JEPA 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).
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NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin that the
development fees will be collected, as directed by TVTC, from any development within the
jurisdiction of the City of Dublin that will be granted a land use entitlement.
PASSED, APPROVED AND ADOPTED this 19th day of May, 2015, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
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