SANTA CRUZ COUNTY BOARD OF SUPERVISORS INDEX SHEET Source Code: 1/18/12 PUBWK Agenda Date: 1/24/12 INVENUM: 66228 Creation Date: Resolution(s): Ordinance(s): Contract(s): Continue Date(s): (1) 4/10/12 Index: --Letter of the Director of Public Works dated January 11, 2012 --Attachment A: County Code Section 15.12 --Attachment B: Public Works Fee Book Item: 42.1 ACCEPTED AND FILED report on Transportation Improvement Area Fees and directed staff to return with a further status report on Transportation Improvement fees on or before April 10, 2012 COUNTY OF SANTA CRUZ STATE OF CALIFORNIA AT THE BOARD OF SUPERVISORS MEETING On the Date of January 24, 2012 REGULAR AGENDA Item No. 42.1 Upon the motion of Supervisor Coonerty, duly seconded by Supervisor Caput, with Supervisor Stone absent, the Board, accepted and filed report on Transportation Improvement Area Fees and directed staff to return with a further status report on Transportation Improvement Area Fees on or before April 10, 2012 cc: CAO County Counsel Public Works Planning Dept. State of California, County of Santa Cruz-ss. I, Susan A. Mauriello, Ex-offcio Clerk of the Board of Supervisors of the County of Santa Cruz, State of California, do hereby certify that the foregoing is a true and correct copy of the order made and entered in the Minutes of said Board of Supervisors. In witness thereof I have hereunto set my hand and affxed tthe seal of said Board of 'lvisors. by -, Deputy Clerk ON January 25, 2012 anta ruz County f S0 C 0193 DEPARTMENT OF PUBLIC WORKS 701 OCEAN STREET, ROOM 410, SANTA CRUZ, CA 95060-4070 (831) 454-2160 FAX (831) 454-2385 TOO (831) 454-2123 JOHN J. PRESLEIGH DIRECTOR OF PUBLIC WORKS AGENDA: JANUARY 24, 201~ January 11,2012 SANTA CRUZ COUNTY BOARD OF SUPERVISORS 701 Ocean Street Santa Cruz, California 95060 SUBJECT: UNIFIED FEE SCHEDULE - REPORT ON TRANSPORTATION IMPROVEMENT AREA FEES Members of the Board: On December 6, 2011, during the Unified Fee Schedule (UFS) update item your Board requested a report back on the Transportation Improvement Area (TIA) fees. Your Board raised concerns related to commercial development potential, the need for economic development in the unincorporated areas of the County, and how TIA fees may be inhibiting the current rate of commercial development. This report provides information on the purose, history, and necessity of TIA fees in our County and presents several concepts that can be explored to implement changes to the TIA fee process to help encourage economic development. PURPOSE OF TIA FEES TIA fees are used to improve public road infrastructure in the Aptos, Live Oak, Pajaro Valley, and Soquel planing areas based upon the Capital Improvement Program (CIP) projects listing. The CIP is a five-year document listing projects needed to accommodate build-out of the General Plan. The TIA fees generated in each planning area are required to be utilized within that planning area. TIA fees are collected as a result of new development and are charged based upon the net new number of daily trips generated by a proposed use. TIA fees were established per the attached County Code Section 15.12 (Attachment A). In addition, the attached Public Works Fee Book has several pages relating to the TIA fee amounts and trip rates (Attachment B). The current overall TIA fee for each of the four planning areas is $600 per new trip. All four TIA fees have always been equalized so as not to attract/distract development from one planning area to another. RECENT HISTORY Prior to December 2005 the TIA fees had not been increased for 10 years, while construction costs increased over 24 percent per the San Francisco Area Construction Cost indei:x / J2 (CCI) as reported in the Engineering News Record. Therefore, a plan was implemented to '-I' increase the TIA fees over a five-year period consistent with the latest five-year average CCI plus / SANTA CRUZ COUN ~ i BOARD OF SUPERVISORS Page -2- 0194 a 4 percent constant factor to make up the 24 percent increase in costs not previously captured, starting with a base 4 percent increase in December 2005. TIA fees are now proposed to be increased annually during the June 2012 UFS update, and only by using the five-year average CCI. The past rate increases for each year since 2005 are shown below: December 2005 = 4 percent June 2006 = 4 percent + 2.2 percent = 6.2 percent June 2007 = 4 percent + 3.1 percent = 7.1 percent June 2008 = 4 percent + 3.6 percent = 7.6 percent June 2009 = 4 percent + 3.8 percent = 7.8 percent June 2010 = 4 percent + 3.8 percent = 7.8 percent June 2011 = 3.6 percent FUTURE NEEDS Collecting TIA fees is, and has been for decades, an established method for local jurisdictions to accumulate funds to either build transportation related infrastructure improvements or to use as the required local match to grant funding such as Safe Routes to School grants. All local jurisdictions within Santa Cruz County, except the City of Capitola, collect development impact fees for transportation improvements. TIA fees play an ever increasing vital role in funding construction projects now that Redevelopment Agency (RDA) funding is no longer available in the Live Oak and Soquel planning areas, and due to the overall reduction in State and Federal grant funding for transportation improvements. TIA fees, like RDA funds, can only be used for the planning, design, and construction of capital improvement projects and not for maintenance projects. 201 1/2012 CIP accepted by your Board on December 13,2011, lists a combined cost estimate of $24 million for transportation and roadside improvements with $3.3 milion from TIA fees (7.27 percent) for the next five years. However, the unprogrammed (unfunded) project listing for road and roadside improvements has an estimated cost of$103 million for all four TIA planning areas. It is clear that TIA fees are a necessity and a valid means to fairly charge developers for the costs of constructing the transportation infrastructure improvements that are required in order to accommodate demands caused by new development. The Final TIA FEES AND ECONOMIC DEVELOPMENT There are several financial concepts related to changing the TIA fee process that can those concepts are: be explored to potentially help facilitate economic development. Some of . Allow payment of impact fees at the time a Certificate of Occupancy is issued, rather than at the time a building permit is issued. Many jurisdictions have used this approach based on the rationale that the impact does not occur until a building is actually occupied. . For certain development zones or types, where it is likely that substitute resources such as grants will be available, or within which there is a lesser need for new improvements, it may be possible reduce TIA fees. . As an incentive to attract commercial development, it may be possible for the L(~ County to enter into agreements that would allow the impact fees to be paid over an extended time period (e.g. 5 to 10 years). . Increased TIA fee credit amounts for developer constructed CIP projects. SANTA CRUZ COUNTY BOARD OF SUPERVISORS Page -3- 0195 These concepts wil be explored by staff of the Public Works Department, Planning Department and County Counsel's offce. In addition, staff will research other local jurisdictions' concepts regarding the relationships between economic development and transportation improvement fees. As these concepts are explored, researched, and defined in detail, recommendations can be created and presented to your Board as part of the ongoing economic development updates, Unified Fee Schedule updates, and/or included with specific project updates. It is therefore recommended that the Board of Supervisors take the following actions: 1. Accept and file this report on the Transportation Improvement Area fees. 2. Direct Public Works to return with a further status report during the 2012/2013 Budget hearings. Yours truly, ~~4~é:1- Yours trulY'r IJ Jk" 1Il~ 4i~/Á ;itHY MOLLby PREVISICH Planing Director JJP:JRS:rw Attachments REC MENDED FOR APPROVAL: Copy to: Public Works Planning united feerw.doc i' f Chapter 15.12 0196 TRANSPORTATION AND ROADSIDE IMPROVEMENT FEES Sections: 15.12.010 15.12.020 15.12.030 15.12.040 15.12.050 15.12.060 Findings and purpose. Scope. Improvement fee requirement Amount of fee. Trust funds establishment. Trust fund expenditures. 15.12.010 Findings and purpose. The Board of SupeíVisors of Santa Cruz County hereby finds and declares as follows: (a) The Circulation Element of the County General Plan and the Local Coastal Program Land Use. Plan includes policies and programs to establish a transportation system which wil accommodate the travel demands of development projected by the County General Plan, which wil reduce traffic congestion, and which is within the County's ability to finance and operate. (Ord. 4346,12/13/94) (b) The County's Growth Management System urban area protection policy requires that new development within the unincorporated urban area proceed consistent with the provision of adequate services, including transportation and roadside improvements. (c) County policies require new developments to mitigate their impacts on transportation and roadside facilities through system improvements, and require those benefiing from transportation ànd roadside improvements to pay a fair share of the costs through assessment of fees on new development. (d) The County General Plan directs the establishment of transportation improvement areas to finance circulation improvements where such improvements have been identified by the General Plan Circulation Element and the Capital Improvement Program. (e) The Board of SupeíVisors has determined that transportation and roadside improvement fees are necessary in order to finance transportation and roadside improvements and to pay for development's fair share of the construction costs of these improvements. In establishing the fees described in this chapter, the Board of SupeíVisors has found the fees to be consistent with the County General Plan and Government Code Section 65913.1, and has considered the effects of the fee with respect to the _County's housing needs as established in the Housing Element of the General Plan. (f) The County has analyzed the relationships between new development and the generation of vehicle, bicycle, pedestrian, equestrian and other traffc and the resulting impacts on transportation and roadside facilities based on the land uses authorized at build out under the County General Plan, and pursuant to this ordinance, establishes fees reasonably related to the costs of mitigating such impacts. (g) The purpose of this Chapter, therefore, is to: 1) Implement the General Plan, the Local Coastal Program Land Use Plan, and the Growth Management System policies to maintain a balanced, safe, effcient, and healthful transportation system. I) 2 i 2) Mitigate the traffc impact caused by new development by constructing transportation and ~ i ~' roadside improvements identified in the County's General Plan Circulation Element and Capital '" A. TT ACHMENT A Page 1 of 4 Improvement Program. 0197 3) Establish transportation and roadside improvement fees to provide for the financing of transportation and roadside improvement projects identified in the County's General Plan Circulation Element and Capital Improvement Program. 15.12.020 Scope. This chapter establishes transportation and roadside improvement fees to fund the construction of transportation and roadside improvements through assessments on new developments and expansion of uses authorized through the approval of minor land divisions, subdivisions, building permits, and commercial and residential development permits in the unincorporated portion of the County. This chapter further provides for the establishment of trust funds to receive the revenues collected in those General Plan planning areas where fees are created, and authorizes the Board of Supervisors to establish by resolution the inventory of capital improvement facilities for which funds may be expanded and the amount of fees to be assessed, subject to periodic review. 15.12.030 Improvement fee requirement. divisions, subdivisions, building (a) All development projects including (without limitation) minor land permits, and commercial or residential development permits, and permits for phased projects, unless otherwise exempted, shall pay a transportation and roadside improvement fee. Where transportation and roadside improvement fees are required, they shall be paid at the time of the first of the following occurrences: (1) Prior to the recording of a parcel map for a minor land division or a final map for a subdivision. (2) Prior to the issuance of a project building permit. (3) Prior to the exercise of any use entitlement, or development permit. (b) This Chapter shall not apply to permits for residential additions less than seventy (70) square feet or which do not create bedrooms as defined by Section 7.38.030 of the County Code. (c) The fee for residential additions more than seventy (70) square feet in size which create additional bedroom(s) as defined by Section 7.38.030 of the County Code, shall be charged as established by resolution of the Board of Supervisors. for additions and expansions to non-residential uses and facilities shall be based on (d) The fee increased traffc generated as measured by trip ends and shall only be imposed to the extent not covered by prior fee payments. (e) No transportation and roadside improvement fees shall be charged for residential construction projects where it is demonstrated that full transportation and roadside improvement fees required pursuant to County regulations were previously paid. (f) Transportation and roadside improvement fees, shall be paid into separate traffic and roadside improvement trust funds for each General Plan planning area and a record of the payment of the impact fees shall be maintained. (Ord. 4318,5/24/94; 4464-C, 8/4/98) 15.12.040 Amount of fee. (a) The Board of Supervisors shall, by resolution, set forth the specific amount of transportation and roadside improvement fees as part of the County's Unified Fee Schedule and based on an allocation of estimated Capital Improvement Program costs to new development. ATTACHMENT A Page 2 of 4 ¿i~ (b) Whenever a develop,. required, as a condition of approval j discretionary permit, to construct a transportation or roadside improvement which: 1) is included in the inventory of capital improvements adopred pursuant to Section 15.12.060(a), and 2) is in excess of the frontage improvements required pursuant to Chapter 15.10, a partial credit against the fee which would otherwise be charged pursuant to this chapter shall be provided. The cost of such improvements shall be credited against the transportation and roadside improvement fee due, up to the full amount of the fee. Valuation of such improvements shalL be established by the approving body at the time of discretionary permit approval based on an adopted schedule of Capital Improvement Program construction costs established by the Board of Supervisors. (c) A developer of any project subject to the fee described in this chapter may apply for a reduction or adjustment to that fee, or a waiver of that fee, based upon the absence of any reasonable relationship between the transportation and roadside impacts of that development and the amount of the fee charged. If a reduction, adjustment or waiver of the transportation and roadside improvement fee is granted any change in use within the project which increases the trip generation rate shaH invalidate the waiver, adjustment or reduction of the fee and the fees for the increase in the trip generation shall be payable pursuant to Section 15.12.030. (d) On a periodic basis concurrent with consideration of the Capital Improvement Program, the Board of Supervisors shall review transportation and roadside improvement fees to determine whether the fee amounts are reasonably related to the impacts of developments and whether the described transportation and roadside improvements are still needed. (e) On an annual basis, the BOard of Supervisors shall review and adjust the transportation and roadside improvement fees to represent changes in the estimated cost of construction of the improvements to be financed by such fees, the continued need for those improvements and the reasonable relationship between such need and the impacts of the various types of development pending and anticipated and for which this fee is charged. 15.12.050 Trust funds establishment. (a) The revenues raised by payment of transportation and roadside improvement fees, along with any interest earned on these revenues, shall be placed into separated traffc and roadside improvement trust funds for each General Plan planning area where transportation and roadside improvement fees are established by the Board of Supervisors. (b) Traffc and roadside improvement trust funds shall be maintained by the Auditor-Controller, and deposited, invested, accounted for and expended pursuant to Government Code Section 66006 and any successor provisions. (c) Transportation and Roadside Improvement Trust Funds previously established on other than a General Plan planning area basis may be merged with the trust funds established herein by resolution of the Board of Supervisors. (Ord. 4496-C, 8/4/98) 15.12.060 Trust fund expenditures. (a) In each General Plan planning area where transportation and roadside improvement fees are established, the Board of Supervisors shall identify from time to time by resolution those capital improvements which may be financed by the fees collected. Trust funds may be expended only for capital improvements so identified by the Board of Supervisors. (b) The transportation and roadside improvement trust funds may at the County's discretion be utilized to pay the cost of construction of facilities described pursuant to Section 15.12.060(a). Expenditure of trust funds shall require authorization by the Board of Super/isors. WJ ATTACHMENT A Page 3 of 4 a 'U (X 0199 (d) For the purpose of this Section, all expenditures from the trust funds shall be deemed to have been made from the fees collected earliest in time. (e) If the Board of Supervisors is unable to make a finding to identify the purpose to which the transportation and roadside improvement fees are to be put, and to demonstrate a reasonable relationship between the fee and the purpose for which it was charged, transportation and roadside improvement fees not committed five or more years after deposit shall be refunded pursuant to Government Code Section 66001 (e). The County shall annually, as part of its budget process, or otherwise, budget or appropriate fees collected by various capital improvements, which shall cause such fees to be deemed committed to transportation or roadside improvements. (Ord. 3969, 12/13/88) ATTACHMENT A Page 4 of 4 Ji 0200 OFFSITE TRANSPORTATION AND ROADSIDE IMPROVEMENT FEE CREDITS FOR APTOS, LIVE OAK, PAJARO VALLEY AND SOQUEL (CONT.) ROADSIDE IMPROVEMENT FEE CREDIT CURB, GUTTER, NO SIDEWALK.. . . . . . . . . . . . . . . . . .. ......... $24.00 per linear foot of frontage SIDEWALK, NO CURB OR GUTTER................. ......... $21.00 perlinearfootoffrontage ASPHALT CURB .......................................... $ 5.30 per linear foot of frontage STREET TREES. . . . . '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.55 per linear foot of frontage RIGHT-OF-WAY. . . . . . . . . . . . .. . . . .. . . . . . .. . . .. . . . . . . . . . . . . . $15.00 per square foot ROADWAY CONSTRUCTION. ............................... $ 6.00 per square foot PLAN LINE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.05 per linear foot of roadway TRANSPORTATION IMPROVEMENT FEE CREDIT Valuation of transportation improvements shall be established based upon a preliminary engineered improvement plan including a cost estimate prepared by a registered engineer. The construction cost estimate shall provide full compensation for furnishing all construction labor, materials, tools, equipment and incidentals, and for doing all the work involved in finishing the entire project Full compensation for any necessary finishing shall be considered as included in the cost of the estimate and no additional compensation will be allowed. PUBLIC WORKS DEPARTMENT. 2011/12. ROADSIDE IMPROVEMENT FEES FOR THE APTOS, LIVE OAK, PAJARO VALLEY AND SOQUEL PLANNING AREAS (County Code Ch. 15.12) I Roadside improvement fees provide funding for roadside related infrastructure improvements (i.e. ¡curbs, gutters & sidewalks) as found in the Santa Cruz County Capital Improvement Program. APTOS RA1 SINGLE FAMILY DWELLlNGS*.. . . . . . . . .. . . . . . . . . . . . . . .. $3,000.00 per unit RA5 MULTI-FAMILY DWELLlNGS*........................... $2,100.00 per unit RAO NEW BEDROOM ADDITION**.. . . . . . . . . . . . . . . . . . . . . . . . .. $1,000.00 per bedroom RA9 NON-RESIDENTIAL DEVELOPMENT***.. . . . . . . . . . . . . . . . .. $ 300.00 per trip end LIVE OAK RL 1 SINGLE FAMILY DWELLlNGS*. . . . . . . . . .. . . . . . . . . . . . . . .. $3,000.00 per unit RL5 MULTI-FAMILY DWELLlNGS*. . . . . . . . . . . . . . . . . . . . . . . . . .. $2,100.00 per unit RLO NEW BEDROOM ADDITION**.. .. . . .. . . .... .. ......... .. $1,000.00 per bedroom RL9 NON-RESIDENTIAL DEVELOPMENT***.. . . . . . . . . . . . . . . . .. $ 300.00 per trip end PAJARO VALLEY RP1 SINGLE FAMILY DWELLlNGS*. . . . . . . . . . . . . . . . . . . . . . . . .. $1,500.00 per unit RP5 MULTI-FAMILY DW ELLlNGS*. . . . . . . . . . . . . . . . . . . . . . . . . .. $1,050.00 per unit RPO NEW BEDROOM ADDITION**.. . . . . . . . . . . . . . . . . . . . . . . . .. $ 500.00 per bedroom RP9 NON-RESIDENTIAL DEVELOPMENT***.. . . . . . . . . . . . . . . . .. $ 150.00 per trip end SOQUEL RS1 SINGLE FAMILY DWELLlNGS*. . . . . . . . . . . . . . . . . . . . . . . . .. $3,000.00 per unit RS5 MULTI-FAMILY DWELLlNGS*. . . . . . . . . . . . . . . . . . . . . . . . . .. $2,100.00 per unit RSO NEW BEDROOM ADDITION**.. . . . . . . . . . . . . . . . . . . . . . . . .. $1,000.00 per bedroom RS9 NON-RESIDENTIAL DEVELOPMENT***.. . . . . . . . . . . . . . . . .. $ 300.00 per trip end *Please see County Code Section 7.38.030. **Total fee for bedroom additions not to exceed fee for single family dwelling. **Please see "Trip Generation Rate Schedule on Page 11. ji! A TT ACHMENT B Page 1 of3 0201 PUBLIC WORKS DEPARTMENT - 2011/12 - TRANSPORTATION IMPROVEMENT FEES Transportation improvement fees provide funding for transportation related infrastructure improvements (roads and bridges) as found in the Santa Cruz County Capital Improvement Program. APTOS TA1 SINGLE FAMILY DWELLINGS.. . . . . . . . . . . . . . .. . . . . . . . . .. $3,000.00 per unit TA5 MULTI-FAMILY DWELLINGS.. . . . . . . . . . . . . . . . . . . . . . . . . .. $2,100.00 per unit TAO NEW BEDROOM ADDITION. . . . . . . . . . . . . . . . . . . . . . . . . . .. $1,000.00 per bedroom TA9 NON-RESIDENTIAL DEVELOPMENT**.. . . . . . . . . . . . . . . . . .. $ 300.00 per trip end LIVE OAK TL 1 SINGLE FAMILY DWELLINGS.. . . . . . . . . . . . . . . . . . . . . . . . .. $3,000.00 per unit TL5 MULTI-FAMILY DWELLINGS.. . . . . . . . . . . . . . . . . . . . . . . . . .. $2,100.00 per unit TLO NEW BEDROOM ADDITION. . . . . . . . . . . . . . . . . . . . . . . . . . .. $1,000.00 per bedroom TL9 NON-RESIDENTIAL DEVELOPMENT**.. . . . . . . . . . . . . . . . . .. $ 300.00 per trip end PAJARO VALLEY TP1 SINGLE FAMILY DWELLINGS.. . . . . . . . . . . . . . . . . . . . . . . . .. $4,500.00 per unit TP5 MULTI-FAMILY DWELLINGS.. . . . . . . . . . . . . . . . . . . . . . . . . .. $3,150.00 per unit TPO NEW BEDROOM ADDITION. . . . . . . . . . . . . . . . . . . . . . . . . . .. $1,500.00 per bedroom TP9 NON-RESIDENTIAL DEVELOPMENT**.. . . . . . . . . . . . . . . . . .. $ 450.00 per trip end SOQUEL TS1 SINGLE FAMILY DWELLINGS.. . . . . . . . . . . . . . . . . . . . . . . . .. $3,000.00 per unit TS5 MULTI-FAMILY DWELLINGS.. . . . . . . . . . . . . . . . . . . . . . . . . .. $2,100.00 per unit TSO NEW BEDROOM ADDITION. . . . . . . . . . . . . . . . . . . . . . . . . . .. $1,000.00 per bedroom TS9 NON-RESIDENTIAL DEVELOPMENT**.. . . . . . . . . . . . . . . . . .. $ 300.00 per trip end **Please see Trip Generation Rate Schedule Page 11. ATTACHMENT B Page 2 of3 42,/ JH 0202 PUBLIC WORKS DEPARTMENT - TRIP GENERATION RATE TABLE (1) NON.RESIDENTIAL (2) MAXIMUM TRIP LAND-USE CATEGORIES END RATE (3) this schedule are to be used only in the calculation of fees for trans- Senior Housing (Per unit) 3 Congregate care housing (Per unit) 2 Visitor Serving Accommodations Hotel/Motel (per VA unit) R.V. Park (per space) Campgrounds (per campsite) (1) The trip generation rates shown in portation and roadside im provements. (2) For land uses other than those 5 specifically listed, appropriate category shall be determined by 5 County Public Works Department 10 based on similarity of use. ADDITIONAL NON-RESIDENTIAL LAND-USE CATEGORIES (2) (3) Where a trafrc study is required and (Per 1,000 GSF) (4) Restau rants 32 maximum of 40 trip ends per 1,000 square feet of gross floor area. Conversely, a lower rate than that which is included in the table may be Health Clubs Gas Stations Used based on a traffic study 15 prepared and submitted at the option 24 of a project applicant Said submitted traffic report and lower trip generation (freestanding) ;; 2,000 square feet Office Professional & Admin trip generation rate based on the report shall be used in place of the rate indicated in this schedule, up to a Com mercial Sales, Service & Repairs Automobile Sales and Service Vehicle repair and sales Personal services -: /= 2,000 square feet accepted by the County during the environmental review of a project, a rate shall be subject to the approval of the decision making body. 18 Medical Real Estate (4) gsf (gross square footage) is the square feet of gross floor area of the Business Office IndustriallWarehouse/ structure containing the non5 Manufacturing Wholesale Greenhouses Public Storage .05 3 Mini-Storage Outdoor Storage/Sales Area (in addition to rate for indoor areas for sales, service and repair) Contractors' Yards Building Material Yards Plant Nurseries Vehicle Sales Institutional 5 Churches Hospitals Day Care Centers Schools Maximum rate for any non-residential use ~, / 40 A TT ACHMENT B Page 3 of3 residential use.
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