HomeMy WebLinkAbout09/06/2005, PH 2 - MODIFICATION OF THE LOS OSOS VALLEY ROAD/US 101 INTERCHANGE PROJECT SUB-AREA TRANSPORTATION IMPACT council
jSeptember 6.2005 acjcnaa nEpont t�N�� a
CITY OF SAN LU IS O B IS PO
FROM: Jay D.Walter, Director of Public Works
Prepared By: Timothy Scott Bochum,Deputy Director of Public Works
SUBJECT: MODIFICATION OF THE LOS OSOS VALLEY ROAD/US 101
INTERCHANGE PROJECT SUB-AREA TRANSPORTATION IMPACT FEE
CAO RECOMMENDATION
Adopt a resolution amending the City's Los Osos Valley Road/US 101 interchange Sub Area Fee
Program.
DISCUSSION
On October 7t', 2003 the Council approved the creation of the Los Osos Valley I
oad/US 101 Sub-
Area mitigation Fee (LOVR SA Fee)program. The program is intended to help pay for some of the
future improvements needed at the interchange and to assist development projects in addressing
their cumulative'impacts caused at the interchange location. The fee program was based upon
preliminary cost estimates of the potential interchange project as well as planning assumptions for
size of developments that may ultimately build in the fee area or, ultimately be annexed into the
City of San Luis Obispo.
Since that time the LOVR Interchange project has been working its way through the State's
advance development process and the City has been pursuing more accurate cost estimates from our
design engineering consultant and Caltrans. As a result of these efforts we now know the total cost
of the interchange will be more.than the$16,000,000 originally used to calculate the existing fee.
On top of this, the- Calle Joaquin Relocation project, which is considered.Phase I of the overall
interchange upgrae, is about to begin construction by Costco, and this project cost will be
approximately $3.1 million, significantly higher than the $1.8 million that was assumed to be
"inside" of the $16 million assumed in the current fee structure. The current fee program assumed
that the City would be successful in obtaining 50/50 local-regional funding for improvements.
Unfortunately, we can not apply the 50/50 funding assumption to this particular cost overage
because any future grant we may receive can not go back and retroactively reimburse for money
already spent. We will however, be able to use this additional amount as an example of the local
match commitment we have applied to the project area, which ultimately should help in securing
future grants.
Finally, on August 23, 2005 Council adopted the Airport Specific Plan and included extending the
Urban Reserve Line down to Buckley Road so as to include the Avila Ranch area within the City's
future developable area. Staff has included portions of this new project area(not currently in the fee
area) because development on these sites will contribute traffic (and impacts) to the interchange
location.
1
Sub-Area Transportation Impact Fee for the LOVR/US 101 Interchange-Project_ -_ Page 2
Recalculating the LOVR Sub Area Fee
Using the City's traffic model and various environmental documents that included trip generation
estimates, staff has computed the percentage of vehicle trips that would be generated by the new
development surrounding the interchange and refined that information into per trip costs for new
development's share of the interchange improvements. Trip generation estimates were based
primarily on the Institute of Transportation Engineers (ITE) Trip Generation Manual, 6`h Edition.
A sub-area around the interchange was established that reflected the likely development and
redevelopment that will affect the need for increased capacity at the interchange location.
Attachment 1 includes the authorizing resolution as well as a map depicting the limits of the revised
Sub=Area of the City and annexation areas that will be part of the LOVR/US 101 interchange Sub-
Area fee program. Staff has also assumed that the 50/50 split between the Sub-Area fee and outside
grant or other sources will be achieved.
How Does the Sub-Area Fee Relate to the Existing Transportation Impact Fee(THT)
Program?
Partial funding for the LOVR/US 101 interchange project is included in the existing TIF program
Which is passed along to all other new development outside of the Sub-Area. The ratio between the
Sub-Area Fee and the TIF has not changed as part of this fee modification analysis and was used in
determining the fee amounts for each program.
The New LOVR Interchange Cost Estimates.The following table outlines the new cost
estimates for the interchange project and the Calle Joaquin relocation project.
Table 1. LOVR/101 Interchan a Cost Estimates
Calle Joaquin Relocation $3,100,000
LOVR IC Project $23,910,000
Total $27,010,000
Calculating the Sub-Area fee. Using the City traffic model percentages of traffic distribution
through the new facility,the following funding components have been determined:
Table 2. LOVRhO1 Interchan a Fundi Sum
Sub-Area Fee $8,644,330
TIF Program(City-Wide) $4,926,050
Fees Collected to date&Credits/Mitigation Fees $1,439,620
Other/Grants $12.,000,000
Total -- $27,010,000
Note:Fees Collected to date reflect fees already paid at the lower fee amount.
Based on an estimated increase of peak PM trips for undeveloped properties in the revised sub-area,
aper trip amount of$4,874 was tabulated for the revised Sub-Area fee.
Table 3 distributes this per trip fee to the various land use categories that are included in the LOVR
-Fee Sub-Area..The table also indicates staff recommended changes to the number of land use types
Sub-Area Transportation Impact Fee for the LOVR/US 101 Interchange Project Page 3
in the proposed fee structure. In essence, after two years of applying the current fee, we now know
the fee should be simplified for retail land uses so that it is easier for development project to
forecast their potential fee amount.
Table 3. LOVR Sub-Area Fee
Land Use Unit EldsCM New Fee With Avilla
Fee Ranch
SFR Dwelling Unit $945 $5,281
MFR Dwelling Unit $580 $3,469
Retail Drive Thru Square foot $ 18.85 N/A
Retail High Square foot $9.45 N/A
Retail Strip Square foot $6.75 N/A
Retail Specialty Square foot $6.50 NIA
Retail Square foot N/A $ 12.75
Retail Auto Square foot $4.25 $ 10.39
Retail Medium Square foot $3.85 N/A
Motel/Hotel Room $ 1,240 $2,710
Business Park Square Foot N/A $6.30
Manufacturing Square Foot N/A $3.61
Service Commercial Square Foot N/A $7.30
Other PM Trip $2,228 $4,874
Note:Due to the variety of uses possible in Service Commercial,fee is based upon ME Land Userrrip Estimates for Office
Park Designation.
It is anticipated that the increased costs for the LOVR Interchange project as part of the city-wide
TIF program will be brought for Council consideration and adoption in November.
What About Development Outside of the City?
Development outside the City impacts the LOVR/US 101 interchange. As such, the City is
currently working with the County of San Luis Obispo to create a mechanism to pass on appropriate
fair share costs of the LOVR Interchange improvement project to County projects currently being
considered by that jurisdiction. Last year the County adopted a San Luis Obispo "Fringe" Area fee
a -3
f
Sub-Area Transportation Impact Fee for the LOVR/US 101 Interchange Project Page 4
for transportation impact fee purposes. That program does not currently collect for impacts at the
interchange location. We hope to work with the County to amend both jurisdiction's fee structure to
bring the associated transportation impact fees in line with each other so that fee amounts will be
close and appropriate fees are collected whether development occurs in the City or County.
Under the requirements of'AB 1600, which establishes guidelines in preparing and implementing
development impact fees, there must a minimum of 60 days between the adoption of any fee
increase and their effective date. Therefore, the proposed fee changes will become effective
November 7`s, 2005.
Finally, in the next few weeks Council will be receiving an update on the status of the LOUR
Interchange advance development process and work done to date on delivering a"preferred"project
for the City and Caltrans approval.
CONCURRENCES
Staff has been working with area development, the County of San Luis Obispo and area property
owners to establish the fair share cost program for the LOVRIUS 101 Interchange project.
FISCAL EMPACT
No impact to the General Fund is anticipated with the proposed modification to the LOVR Sub=
Area fee or TIF program.
ATTACHMENT
Resolution adopting amended LOVR Sub-Area Fees
L\-Council Agenda Repom\M agenda repatsMansportation and Development Review(Bochum)\Traffic Engineering(Seaor)WVR Subarea Fee
Update 9-6-05.DOC'
�. rY
ATTACHMENT I
RESOLUTION NO. (2005 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SAN LUIS OBISPO AMENDING THE CITY'S TRANSPORTATION IMPACT FEES BY
ESTABLISHING A SUB-AREA FEE TO ASSIST IN FUNDING EvIPROVEMNTS TO THE
LOS OSOS VALLEY ROADIUS 101 INTERCHANGE
WHEREAS, Chapter 4.56:10 of the City of San Luis Obispo Municipal Code establishes
transportation impact fees and provides for the setting of fee amounts and other matters by
resolution of the Council; and
WHEREAS, the City of San Luis Obispo has prepared studies to determine the need for
transportation facilities and improvements to serve new development; and
WHEREAS, on October 7, 2003, Council established the Los Osos Valley Road%US 101
Interchange Sub-Area Fee program; and
WHEREAS, the City of 'San Luis Obispo has conducted additional study of the
interchange project and has revised the cost estimates associated with construction of this
important infrastructure improvement to mitigate traffic impact, created by new development;
and
WHEREAS, on September 6, 2005 the Council conducted a public hearing and
considered testimony of interested parties, the staff report and the recommendations of staff.
NOW, THEREFORE, BE IT RESOLVED that the Council modifies the existing
Transportation,Impact Fee and LOVR Sub-Area programs as follows:
1. A revised Los Osos Valley Road/US 101 Interchange lmprovement project Sub-
Area is hereby created and is depicted in Exhibit A.
2. Effective November Th, 2005, the Los Osos Valley Road/US 101 Intei-change
Improvement project Sub-Area Fee for the Transportation Impact Fee program is hereby
modifiedas set forth in Exhibit B,which is in addition to the City-wide fees already in effect.
3. All other provisions; findings and requirements of the Transportation Impact Fee
program will remain in effect pursuant to Resolution No. 8406 (1995 Series).
On motion of , seconded by ,
and on the following roll call vote:
AYES:
NOES:
C
ABSENT:
the foregoing Resolution was passed and adopted this 6th day of September,2005.
David F.Romero,Mayor
ATTEST:
Audrey Hooper,City Clerk
APPROVED AS TO FORM:
Jo .Lowell,City Attomey
1:\-Council Agenda Reports\2005 agenda reports\Transportatioo and Developmem Review(Bochum)\Traffic Engineering(Senor)\Resolution for revised fAVR Sub
Area Pee.doc
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Exhibit B
TRANSPORTATION IMPACT FEES
LOS OSOS VALLEY ROAD/US 101 INTERCHANGE SUB AREA FEES
Land Use Unit New Fee With Avilla Ranch-.
SFR Dwelling Unit $5,281
MFR__- Dwelling Unit $3,469
Retail Square foot 112.75
Retail Auto Square foot $ 10:39
MoteMotel Room $2,710
Business Park _ .Square Foot _ $6.30
Manufacturing Square Foot $3.61
_Service Commercial Square Foot $7.31
Other PM Tri $4,874
Note:Due to the variety of uses possible in Service Commercial,fee is based upon rrE Land Userrrip Estimates for Office
Park Designation.
I:LCoumil Agenda Repom12005 agenda reportsUninsportation and Development Review(Bochum)Crraffic Engineering(Senor)\Resolution for revised L.OVR Sub
Area Fee.doc
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council. memoianaum
RECEIVED
September 6, 2005 SEP 0 6 1005
TO: Mayor and Members of the City Council SLO CITY CLERK
FROM: day D. Walter, Director of Public Works
VIA: Ken Hampian, CAO
SUBJECT; Revision to Public Hearing Item #2 —.Los Osos Valley Road Interchange Sub
Area Fee Program Modification
In preparing for tonight's Council presentation, staff discovered a miscalculation in the
spreadsheet used to calculate the revised Los Osos Valley Road/US 101 Interchange Sub-Area
Fees: While this is bad news from a timing standpoint, it is also good news in that it lowers
some of the calculated retail fees that are proposed for the fee program:
Attachment 1 of this memorandum shows the four fee categories that were calculated incorrect
and their corrected fee amounts.
Attachment 2 is the revised Exhibit "B" of the enacting resolution that reflects the correct fee
amounts.
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Council Memo re lovr fee error
Attachment 1
Revisions to Table 3 of PH #1
Land Use Unit Existing Fee New Fee With
Avilla Ranch
SFR Dwellin Unit $ 945 $3x284$4,972
MFR Dwelling Unit $ 580 5-340 $3,266
Retail Drive Square foot $ 18.85 N/A
Thru
Retail Hi h Square foot $9.45 N/A
Retail Strip Square foot $ 6.75 N/A
Retail Specialty Square foot $ 6.50 N/A
Retail Square foot N/A a '�$12.00
Retail Auto Square foot $4.25 $44A3 $9.78
Retail Medium Square foot $3.85 N/A
Motel/Hotel Room $ 1,240 $29710
Business Park Square Foot N/A $6.30
Manufacturing Square Foot N/A $3.61
Service Square Foot N/A $7.31
Commercial
Other PM Tri $ 2228 $4,874
Note: Due to the variety of uses possible in Service Commercial, fee is based upon ITE Land Use/Trip
Estirnates for Office Park Designation.
i
Attachment 2
Exhibit B
TRANSPORTATION IMPACT FEES
LOS OSOS VALLEY ROAD/US 101 INTERCHANGE SUB AREA FEES
- Land Use.. >: Unit New,Fee With Avilla'
-- Ranch
SFR Dwelling Unit $4,972
MFR Dwelling Unit $ 3,266
Retail Square foot
Retail Auto Square foot
Motel/Hotel Room $2,710
Business Park S. uare Foot $6.30
Manufacturing Square Foot:__ $3.61
Service Commercial Square Foot $7.31
Other I PM Trip $ 4,874
Note: Due to the variety of uses possible in Service Commercial, fee is based upon ITE_ Land Use/Trip
Estimates for.Officc Park Designation.